Advanced Enzyme Technologies Ltd

NSE:ADVENZYMES

Earnings Call Transcript 2022-Q4

[Operator]

Ladies and gentlemen, good day, and welcome to Advanced Enzyme Technologies Limited Q4 and FY '22 Earnings Conference Call. [Operator Instructions]

Please note that this conference is being recorded. I now hand the conference over to Mr. Ronak Saraf. Thank you, and over to you, sir.

[Ronak Saraf, executive]

Thank you. Good evening, everyone. Welcome to the Advanced Enzymes Fourth Quarter and Fiscal Year ended '22 earnings conference call. I'm Ronak Saraf, the Manager of Investor Relations here at Advanced Enzymes. We hope you all have gone through our financials, press release and the PPT, which has been posted in the IR section of our website.

Today, we have with us Mr. Mukund Kabra, Full- Time Director; and Mr. Beni Prasad Rauka, Group CFO. The management will discuss performance and business highlights, updates on strategies and will respond to any questions that you may have. And as is usual, for ease of discussion, we will look at the consolidated financials.

Before we proceed, I would request you all to please read the forward-looking statement contained in the PPT and press release. During our call, we may make forward-looking statements regarding our expectations, predictions about the future because these statements are based on current assumptions and factors that may involve risk and uncertainty. Our actual performance and results may differ materially from our forward-looking statements.

So without any further ado, we shall commence this call. Over to you, Mukund, sir.

[Operator]

Mr. Mukund Kabra, we are not able to hear you. Mr. Mukund Kabra, if you have muted your line, we would request you to unmute your line. We cannot hear you.

[Mukund Kabra, executive]

Thank you, Ronak. Yes, yes. Thank you, Ronak. Good evening, everyone. I really appreciate you all for taking out your valuable time, and I welcome you all to conference call for the quarter and fiscal year ended 31st March 2022. At the onset, I hope everyone is healthy, safe and taking all the necessary precautions in the wake of COVID-19. After quite a few quarters, you are welcoming people to normal work. People have started going back to work.

Starting with a quick recap of the year gone by. During last year, industry has faced some critical challenges initially from the energy crisis, which is coal shortage and its higher prices, turbulence on the raw material front, Omicron variant, unprecedented international [ side ] escalation, geopolitical conflicts which, again, led to the higher energy prices, and various other supply chain factors compounded the situation. Now, recent geopolitical conflicts and reemergence of COVID cases in China and other parts of the world are posing new challenges, with disruptions in the supply chain and logistics has further extended.

Despite a lot of uncertainty and disruptions in the business environment, we have stood strong and dealt with all the challenges to the extent possible. We are managing to keep our business on track and commitments towards our customers. We are continuing to build confidence with customers on our ability to serve them with right quality at economical [ sizes ] and uninterrupted supply execution.

Moving on to the results of this, our revenue declined by 1% on a year-on-year basis to INR 1,317 million in quarter 4 and grew by 6% to INR 5,294 million in the last fiscal. Our EBITDA declined by 27% on a year-on-year basis to INR 403 million during the quarter, and we grew by 13% to INR 2,014 million during the year. Our PAT declined by 25% on a year-on-year basis, to INR 253 million during the quarter, and we grew by 18% and stood at INR 1,238 million during the year.

During quarter 4, our EBITDA margin stood at 31%, while it stood at 38% for the full year. PAT margin stood at 19% during the quarter and it stood at 23% during the year. As I previously mentioned, the impact in the margin is because of elevated input cost. We have tried to optimize and manage to insulate the margins to the extent possible.

During the year, we have received a US NIH accreditation to systematic enzyme and probiotic supplements, ImmunoSEB and ProbioSEB CSC3 to resolve post-COVID fatigue. And for further questions later, so 2 of our filed [indiscernible] catalyst, [indiscernible]. Also, we received our 2 -- our 2 [indiscernible] got clear from the European Food Authority.

We'll continue to focus on our priorities that is customer retention, strengthen R&D, exploring business operation in new geographies, expand solution and product offering, register more products across global regulatory bodies and to look for strategic inorganic opportunities. We'll bring more resilience in our business to enhance customer value proposition and deliver long-term sustainable growth going ahead. We hope the world will become a more normal place, and that should help our business to continue on the path of stability as well as growth.

With this, I will now hand over the call to Rauka-ji, who will walk you through the financials and key subsidiary numbers. Over to you, Rauka-ji.

[Beni Rauka, executive]

Thank you very much, Mukund. Good evening, everyone. I hope you are all in good health.

The year ago was challenging for the entire industry in terms of elevated input cost and on the disrupted supply chain. And also, it was a very important year where one is to work on employee retention and hiring.

Let me walk you through the company's financials for the fourth quarter and for the fiscal year '22. Year-on-year -- I mean, quarter 4 to quarter 4 of the last year, Mukund has given some perspective and also for the fiscal year FY '22 and '21. Let me take you through the Q-on-Q numbers. So quarter 4 and quarter 3 of FY '22, the revenue is down by about INR 19 million, so it stood at INR 1,317 million as compared to INR 1,336 million. EBITDA margin is down from 37% to 31%. And in rupee terms, it is down by INR 88 million from INR 491 million to INR 403 million during this quarter. Profit after tax has gone down by INR 34 million, it's about 12% of our revenue. So from INR 286 million, which is about 21% of our revenue, to INR 253 million, about 19% of our sales.

The reason of a decline in EBITDA is mainly because of higher raw material prices, which has impacted the material cost component of revenue. And other than that, we observed significant increase in our other expenses and mainly like, the consulting charges and our CSR expenses, sales promotion activities has gone up substantially. And of course, the prices of coal, fuel, so that has gone up substantially and we are seeing the impact of it. Other than that, we have higher laboratory expenses and stores connections is also higher as compared to the previous quarter.

Payroll cost is slightly up because of additional -- I mean, new hiring during the quarter as compared to quarter 3. So overall impact on EBITDA is because of a couple of reasons, lower gross margins, higher other expenses, and finance cost is slightly up by about INR 3 million, that is mainly because of lease accounting treatment. Depreciation and amortization is, again, slightly high by about INR 4 million, but no significant impact as such.

Now, I will give you on the 12 months number, I mean, comparison of FY '21 and FY '22. So our revenue is increased by about INR 276 million, this is roughly 6% of growth from INR 5,018 million to INR 5,294 million. And this growth is mainly driven by SciTech, where this year, we have consolidated a full 12 months of numbers as compared to last year, 84 days because that acquisition happened somewhere in the month of January '21.

EBITDA is down this year, mainly because -- I mean, again, I will take you through the various regions. But yes, from INR 2,316 million to INR 2,014 million. So the EBITDA margin, which was 46% in FY '21, is decreased to 38% of our revenue. Profit after tax is about 23% of our revenue as compared to 30% last year, so there is a decrease of about INR 275 million in our PAT and now it is at INR 1,238 million as compared to INR 1,513 million in FY '21.

And the EBITDA margin, as I mentioned earlier, is lower during FY '22 as compared to FY '21 because of a couple of reasons, which I explained in the quarter-to-quarter, the same kind of situation was there. For the full 12 months, we have seen that higher raw material prices has impacted our gross contribution margin by about 1%, and the payroll cost is higher, mainly, I mean, as mentioned to you, that SciTech 12 months of inclusion in this year. So there is an impact of -- in addition to SciTech annual increments, which has been given by our company and all our subsidiaries, that has also impacted the EBITDA margin.

In addition to that, there is an impact of about 6% because of higher other expenses, and those are mainly due to the higher fuel prices, including coal. And of course, this year, we have exhibited in a couple of exhibition in international market, so our sales promotion expenses are higher. And of course, consulting for various business promotions, that has also gone up. And freight and forwarding, this is something most of the company has got impacted, again, that is driven because of higher fuel prices.

And in addition to that, this year, we have seen that now, the travels and everything is becoming like a normal feature, business as usual. So travel incremental expenses are also higher as compared to the last year. And apart from that, there are expenses like lab expenses and source and spare parts, so all put together has impacted our EBITDA margin by about 6%.

Finance cost is not significantly gone up. It is only INR 2 million increase as compared to FY '21, and the depreciation and amortization has increased by about INR 60 million. This is again mainly because of 12 months of consolidation during this year. And in addition to that, when the acquisition is done, we have to allocate the purchase price. So we have some intangible assets, this needs to be amortized. So the impact is mainly from the SciTech costs, that is INR 63 million.

Our subsidiary numbers, as we generally share with the investors. So our Evoxx of top line was about INR 50 million in this quarter with EBITDA margin of INR 15 million and PAT of INR 6 million as compared to the previous quarter of INR 108 million of revenue and INR 25 million of EBITDA and INR 15 million of PAT. So for FY '21, the top line of Evoxx was about INR 220 million as compared to INR 281 million last year. So on year-on-year, we have seen there's a decrease of about 22%. And EBITDA is down by about 49%, from INR 52 million to INR 26 million, and the PAT is also down as compared to the last year.

JC Biotech stood at INR 139 million of revenue in this quarter, with EBITDA of INR 35 million and PAT of INR 17 million as compared to INR 150 million, INR 48 million and INR 27 million, respectively. JC Biotech FY '22 numbers stood at INR 503 million as compared to INR 504 million of the last year, and EBITDA of INR 142 million as compared to INR 149 million, and PAT of INR 72 million as compared to INR 78 million.

Our largest selling product, this is anti-inflammatory enzyme, this quarter stood at INR 247 million as compared to INR 281 million. And for the year, the total sales of this particular segment and the particular product, anti-inflammatory enzyme, is about INR 1,039 million as compared to INR 1,135 million of previous year. So roughly, it constitutes about 28% of our top line for FY '22 and 31% last year.

Our top end customer contribution during FY '22 is about 28% as compared to 31% last year. And B2B segment, we have not seen any kind of growth. Numbers are flat, it's about USD 1.24 million in terms of USD as compared to USD 1.27 million last year. But yes, in terms of rupees, it has increased from INR 386 million to INR 412 million.

In addition to that, we also shared our -- we talked about the category-wise our products. So in human nutrition, if we see the pharma, this is like in India market, the sales has gone up from INR 1,125 million to INR 1,213 million. And the other product category, which is probiotics, I mean, it's down from INR 551 million to INR 172 million. Bio-processing is up from INR 163 million to INR 187 million. International sales is down from -- I'm sorry, INR 1,934 million to INR 2,022 million. But yes, overall, if you see the B2C segment, I mean, there is no growth.

Other than that, we have seen a kind of a growth in our U.S. business slightly, but that is in the nutraceutical business and probiotic business, and the Non-Food segment has witnessed has some degrowth. Our R&D expenditures during the year including the CapEx stood at INR 232 million. This is about 4.4% of our consolidated sales as compared to EUR 257 million and 5.1% of our consolidated sales during FY '21.

That was from my side. And now we open the floor for question-and-answer session. Thank you so much. Please.

[Operator]

[Operator Instructions] The first question is from the line of Nikhil Mathur from HDFC Mutual Fund.

[Nikhil Mathur, analyst]

Sir, my question is, first on the company being able to pass on pricing or passing higher op cost to customers. If I look at on a Q2 on a Y-o-Y basis, there has been a dip in gross margin, but it is kind of fine. I mean, 100 basis points in this environment is quite understandable. But I think the problem has been more on the fixed cost as a percentage of sales.

So I'm just trying to understand, has there been a loss of volumes in the [indiscernible], which has led to some sort of operating deleverage? Because the beta margin compression, both direct is much higher than what the gross margins look like?

[Mukund Kabra, executive]

So Nikhil, yes, to some extent, you were talking about like the probiotic business has [ reduced ] this year because of the inventory at the customer to a certain level. That has also contributed towards the lower one, lower margins on the EBITDA front, besides like the -- or the price tag. I think as we move on and as the business stabilizes this year, we should come back to the margins.

[Nikhil Mathur, analyst]

So sir, providing the probiotic business, it has led to this sort of a disproportionate impact?

[Mukund Kabra, executive]

Yes, so the probiotic has a somewhat like impact because that business has reduced significantly for this year. It's like almost like from [indiscernible] this year, and that is the only one area which has really impacted. Some -- and there is anti-inflammatory product, which has gone down to some level because of the -- some registration required in the Europe and other markets. So when we file all the papers and other things because it is now getting under the [indiscernible], it will again have some impact for a year or 2 years, right. So those are the 2 areas which have given us some kind of degrowth on the revenues.

[Nikhil Mathur, analyst]

So sir, heading into FY '22, I think we are almost -- we have passed midway this quarter. So any particular signs you're seeing of revival in both these segments in this particular year? Or are you -- I mean, a few more quarters have to be waited -- a few months have to be waited out before the reversal is visible?

[Mukund Kabra, executive]

In this coming year, it's like challenging, but at the same time, there are a lot of opportunities which we can take. We can see, maybe like a quarter down the line, like we can see that a lot of business opportunities are getting opened up because of the Russian conditions. We are getting, like, all the competitors, and other people are going with the price hike and other areas, so a lot of people are approaching us now for the product. So all of these, there's been a lot of positive developments that are going on, on these areas.

At the same time, like the biocatalyst area, which was like -- which was under pressure because of the solvent prices at the customer levels and other areas. But now, even like Chinese people are taking the price hikes and other things. So the prices are stabilizing and getting to the normal, and that is also creating a lot of attraction in the biocatalyst area. So I think in our business, there is always a lag of 1 quarter or 1.5 quarter, and then the things should really become more better.

[Nikhil Mathur, analyst]

Got it, sir. And sir, these potential other wins that you're talking about because of Asia or even in China. These products are already there in the market? Or there are products that are yet to be launched by the company?

[Mukund Kabra, executive]

No, these products are already in the market. The Chinese impact, like the biocatalyst area where we were hearing the product that we have not been able to sell because of the particular cost was very, very low from the Chinese area. Now like those prices has again gone back to the normal level and that is where like a lot of attraction is coming from the -- all of these pharma manufacturers to manufacture APA in India.

[Nikhil Mathur, analyst]

Got it, sir. And sir, do you mind giving some indication on what is the inflation level that the company is operating at in FY '22 as well as FY '21?

[Mukund Kabra, executive]

Can you repeat the question, Nikhil?

[Nikhil Mathur, analyst]

I'm asking you, can you give some color on what is the inflation level in FY '22 versus the inflation levels in FY '21 out of the plants?

[Mukund Kabra, executive]

So if we really talk about like the raw material inflation and the other inflation or the pure inflation, now, the prices are more or less getting stabilized. Now, with these stabilized prices, we started working on like -- if we cannot like pass on all the cost to the customer, then we also started working under putting down the cost on the raw material front. So that should balance out like all the inflation and other things because now the situation is more the same. Now, we can see that the prices have to go down from these layers rather than going...

[Nikhil Mathur, analyst]

Sorry, sir, sorry to interrupt. My question was on the production volume utilization, I mean, businesses, the capacity, what is the production volume utilization that you have seen in FY '22 and what is FY '21?

[Mukund Kabra, executive]

It's more or less the same thing, Nikhil. Maybe 55%, 60%, it's very difficult to project in terms of capacity, but there a lot of capacity which is there. Also, like, we are recently like -- expanded our capacity in JC Biotech from 60-meter for fermentation to another 60-meter for fermentation, and that capacity is also like available at this point, so we'll be coming up with a lot of different products out there too in the given time.

[Nikhil Mathur, analyst]

So basically, sir, the company has started on CapEx in the next 1 or 2 years, so there should not be any major step up in CapEx?

[Mukund Kabra, executive]

There will be some CapEx, which is a normal maintenance CapEx, which will be somewhere around 15, 16 year this year. And if we get all the permissions for the R&D, what we propose in our like [ Nordic ] areas, the new R&D center, I think like we should be able to get the permissions somewhere by June 8. And if we get that permission from all the government authorities, then maybe 5, 6 years, we will be spending out there in the construction.

[Operator]

The next question is from the line of [ Harshal Salati ] from Equitree Capital.

[Unknown Analyst]

[ Am I ] audible?

[Operator]

Yes, sir, you're audible. Please go ahead.

[Unknown Analyst]

Sir, I wanted to know how do you shortlist the products to enter into -- how long does it take for your products to hit the market from scratch? And what are your internal metrics you look at when you launch a new product?

And the second question is, in the press release, you have mentioned as well as launching a lot of products. So can you please elaborate when will the products hit the market? What will be the return on investments and stuff like that?

[Mukund Kabra, executive]

So Harshal, we generally like select the products in the area or the focus areas which we operate. So our normal focus area is like the human nutraceutical and animal nutraceutical and the food. Particularly in the food, we are focusing on like baking industry. The next level of focus, we'll go into the dairy industry. So we try to make the complete basket as we move on into those particular areas. For example, when we will go for the dairy industry, we will be having all the baskets like, for example, whatever the enzymes need, whatever the probiotics we need for the dairy, and then we will go for that.

Now developing a single product makes a lot of time depending on the R&D, depending on -- like the success rate, we do have a quite good success rate. But let's say, if we go in a biocatalyst, let's say, we go for some kind of ADH or JDH or some kind of an API, then in that certain context, we need 1 to 2 years as well. We may have to go from 3 to 4 protein milligrams in that particular case.

It depends on all the products, it depends on the categories, which we are like focusing. There are a lot of different categories in terms of revenue or the [ growth ]. Even like -- once you make a product, it really doesn't hit the market right away. It takes 2 to 3 years to really start generating the revenues once you like decide to make into the product. But with our expertise and with the time that we are spending in the industry, we do it at a very, very low cost. So the return of investment is hardly picked any time once we realize the product.

[Unknown Analyst]

Okay. Got it, sir. And sir, a follow-up on that. We are entering into the B2C segment as well. So by when do you expect that segment to mature? And what kind of investments are you looking into to invest?

[Mukund Kabra, executive]

So we are already there in B2C area in the U.S. market. We are trying to copy that one. In the U.S. also, like we didn't get, in fact, for the first 3 to 4 years. And I think we announced that we will need 3 to 4 years. We are not spending too much of money into this area. This also, we will be spending somewhere around couple of years into this area.

[Unknown Analyst]

Okay. Got it. And sir, last question. Sir, our sales have been growing at single digits. So are you confident that our new product launches will help us grow our revenue by double digits in the coming years?

[Mukund Kabra, executive]

We feel sir, because we are at a very good stages. A lot of things are under the pipeline. I cannot say for this year, particularly like the first quarter and 1.5 quarters. But I still feel that this year, we should also get to lower double-digit growth. But is it difficult to predict with the given situation, geopolitical situations and unavoidable situation changes. But I think like we should have more clarity by the next quarter or something.

[Operator]

[Operator Instructions] Next question is from the line of Rohit Sinha from Sunidhi Securities.

[Rohit Sinha, analyst]

Yes. Sir, if I heard right, you said that in JC biotech you've almost doubled the capacity. Am I correct?

[Mukund Kabra, executive]

That is right, yes.

[Rohit Sinha, analyst]

So, sir, from the earlier capacity, we had a run rate of -- what, INR 50 crores? INR 50 crore there. So can we expect a similar INR 50 crore from the additional capacity by '24 at least? Or it will take even longer time to reach that kind of level?

[Mukund Kabra, executive]

Yes. So as you know the JC Biotech capacity was 100% utilized, right? So we always create the capacity to begin with. Now, the advantage of JC Biotech is we do have all the solvent handling facilities available out there. So we can we can do the fermentation where we can use the solvent and other things, which is not there in the other 2 areas [indiscernible]. So that was the objective to build up the capacity at JC Biotech.

The capacity on the fermentation side is over that we are still looking for the capacity to be installed for the downstream. I think that work should be completed by May-end and on the first week of June. And then we can start with some products which require solvents, particularly into the Animal Feed areas and other areas where you need to do -- even in fermentation, you need to put some salts.

So that should make -- that should increase our capacity to make those enzymes, which currently we are importing. And that should give us, like, some more strength as you know into this area.

[Rohit Sinha, analyst]

Okay.

So how is the demand as of now from the JC Biotech space especially and I just wanted to understand what kind of potential revenue additions could we see from -- for FY '23 and '24 if, at all, you can mention?

[Mukund Kabra, executive]

More or less, like on the [indiscernible] front or the anti-inflammatory front, the capacity is fully utilized. Now, we are expanding it more on the Animal Feed area, and this product should come off like maybe from the second quarter of this year. And as you know, there are a lot of different products we can introduce into the JC Biotech facility.

So -- there's always a lag, but maybe a couple of projects down the line, it should start increasing the revenue.

[Rohit Sinha, analyst]

Okay. Okay.

So roughly -- I mean, can we expect additional INR 15 crores, INR 20 crores kind of a number for FY '22, '23, or?

[Mukund Kabra, executive]

Yes. At least INR 5 cr to 10 cr to begin with this year, I'm not really clear on this year's picture at this point of time. But as we move on, more things will be clear.

[Rohit Sinha, analyst]

Okay.

But as we are adding, I mean, mostly for this Animal Feed and not for Human Nutraceutical business.

[Mukund Kabra, executive]

It can be added for any of the products. At this point of time, a couple of products, which were like developed with the R&D [indiscernible] which we are trying to take it out there to make it because it requires solvents, and we do have a solvent facility out there.

[Rohit Sinha, analyst]

Got it.

And secondly, sir, on just is it possible to share what is the breakup in our other expenses? How the -- how much the additional logistic cost and power costs have been there?

[Mukund Kabra, executive]

Rauka-ji? Rauka-ji?

[Beni Rauka, executive]

Yes, yes. Give a minute please. So you want in terms of absolute numbers? Otherwise, I have given you the exact -- I have given impact -- I have given you the impact on EBITDA.

[Rohit Sinha, analyst]

Yes, that is all I have -- just if at all, I mean, a rough number on additional and incremental cost which is there on power and logistics.

[Beni Rauka, executive]

The power and fuel -- if I look at my 12 months number, it has gone up by about INR 60 million, okay? And then our stores and spare parts has gone up about INR 25 million. Sales promotion expenses are up by about INR 30 million. Freight and forwarding is up about by INR 12 million. Travel expenses is up by INR 15 million.

And the substantial increase in the other expenses, as I already mentioned to you, is on account of the 12 months consolidation of our SciTech during this year, because last year number includes early for 84 days of performance of SciTech. So that increase is about INR 90 million in absolute number, okay? And other than that, there's an increase in [indiscernible] raw material because of, again, the increase in the price is about INR 13 million. And there is, of course, some increase in other petty and miscellaneous expenses of about INR 14 million.

So roughly, the total increase in terms of absolute number is INR 302 million in this FY '22. From INR 841 million last year, it has reached INR 1,143 million. So I have given a complete breakup of increase in other expenses.

[Rohit Sinha, analyst]

Okay.

And just last question, as we are making that obviously the 12% increase because of SciTech, just wanted to know, from Q3 to Q4, are there any more addition in terms of revenue?

[Beni Rauka, executive]

No, no. Q3, Q4, the increase is not significant, if I compare my SciTech and the consolidated numbers. There is no significant impact.

[Rohit Sinha, analyst]

Yes. But there are like few people, which we have taken in the marketing and at the same time in the R&D because we are expanding in the R&D.

[Beni Rauka, executive]

Yes, payroll cost has gone up, yes, of course.

[Rohit Sinha, analyst]

Yes. That is all from my side.

[Operator]

[Operator Instructions] The next question is from the line of [indiscernible] Agarwal from Old Bridge Capital.

[Unknown Analyst]

Just a quick question. What proportion of your Americas revenue are from North America?

[Beni Rauka, executive]

I don't think we have that breakup.

[Mukund Kabra, executive]

We don't have a breakup, but I can say that most of the revenues come from the North America.

[Unknown Analyst]

Okay. Okay.

[Mukund Kabra, executive]

I can say that's more than 90% if I have to be...

[Operator]

[Operator Instructions] The next question is from the line of Jai Anand from Altavista Capital.

[Unknown Analyst]

I wanted to understand a bit more on the Probiotics. And on one of the slides that is mentioned that last year, FY '21 sales was $9.8 million, and this year, it was $4.7 million. So why is there a significant reduction in revenue from probiotic?

[Mukund Kabra, executive]

So in the Probiotics, like, we are working on the key strategies. One strategy is supplying to the people who are already established, and the second strategy is to develop our own track. So developing the brand requires some more time. You need to file all the [indiscernible], you need to file all the other things, you need to go to the customers' R&D and that is a time [indiscernible].

So the business where we are supplying to the providers, to the people who are already established in the market and who are like the supplier, at that end there is the inventory pilot, and some of the loss of the business for that customer from the market. And that both of those have contributed to the reduction in this demand for the last year, where we hardly had much of the sale on that front last year.

This year, the situation changed, it became somewhat normal. Not like the last to last year, but maybe earlier this year. So we should be getting back into the normal thing, but this is where like the revenue -- if you really compare, those are almost significantly on the lower side.

[Unknown Analyst]

Is it due to only one customer?

[Mukund Kabra, executive]

Yes.

[Operator]

The next question is from the line of [Ketan Chera] a retail investor.

[Unknown Analyst]

Am I audible?

[Operator]

Yes.

[Unknown Analyst]

Yes. Sir, I wanted to know, do we have any 5-year plan or 5-year goal kind of a thing? Or a road map, if you will, in terms of where do you want to reach in terms of scale? It could be either numbers or some other goals or targets. Do we have something like that? Or -- did we have in the past before the COVID period? And have you made any adjustments to that?

[Mukund Kabra, executive]

So Ketan ji, yes, you are right. Before the COVID started, we made a 5-year plan to double the revenue. We were on the track, but then the COVID situation has come up. The situation has really made us little bit shaky -- you are right. We had to just to sit back into drawing room and regroup and rearrange the plan. Once we do that, we will let you know.

But more or less, we feel that those goals should be achieving them if the things become normal -- more quickly if things become normal, we should be able to move on to the faster track.

[Unknown Analyst]

Okay.

So just a follow-up. So whatever target we have in terms of doubling the revenues before the COVID period. So now, what is the year that we are looking forward to? Like, by when we will be doing the revenue top line?

[Mukund Kabra, executive]

That's is what I was saying Ketan-ji, we will sit back, go again into the drawing room, and we will come back to this. At this point of time, we're going with the same target. Clearly, I still feel, if the things become normal, so we should be able to enter the given track. We should really come back quickly to given track.

[Operator]

[Operator Instructions] The next question is from the line of [ Jatinder Agarwal ], an individual investor.

[Unknown Analyst]

Can you share some details in terms of your R&D team in terms of headcount over the last 3 to 4 years?

Secondly, within this, if you could elaborate how do we, as an outsider, look at your R&D detail in terms of -- so like if you see on a medical side, you probably get the PhDs and doctors on that side. So is there some qualitative expects to share on your R&D activities? That will be good.

[Mukund Kabra, executive]

Rauka-ji, do you have the numbers?

[Beni Rauka, executive]

The numbers, we will share. Meanwhile, we can give you the input about the qualitative aspect, what exactly we look forward when we hire people in R&D. Let me give some brief on this, and I think Mukund will add on it.

As you see that we operate in different segments, Human Nutrition, Animal Nutrition. Then apart from that, in Bio-Processing segment, where we have Non-Food and Food segment. So whenever we work on various enzymes, those are supplied, those are formulated. So there is a sign which is like, where you need to see where the enzyme can be used. If it's going for Non-Food processing unit, people who are from the technical background of like textiles, pulp, paper, labor. So those who are with that kind of a technical background, they are also part of the R&D team. And when we talk about Animal Nutrition, again, the nutrition mix is someone like we always look upon.

In addition to that, as you look to Human Nutrition side, of course, the various scientists for different segments, whether it's genome or whether it is microbiology, all those who have technical and scientific knowledge and qualification, they are always with us. And most of them at top level are like doctorate or they have like PhD's in their field. And in addition to that, those who help them, so they are like the MSc and BSc background. So most of them are making a qualified team of candidates.

[Mukund Kabra, executive]

At this project, there are more than 100 people if we added to all the different, different labs? It depends on the area, what is there? We have a lot of different, different segments. One is like the Animal Feed, then there is a Food area then there is a nutraceutical area, then there is biocatalyst area, then there is a fermentation R&D, and then there is [indiscernible] R&D. So different segment have different people, right, and then there is a formulation R&D. As Rauka-ji was talking about, there is another division textile R&D, another division of detergent R&D.

So it's very difficult for me to tell you exactly what is the composition. It depends on the area, what kind of jobs we are looking, what kind of work we are doing. But the team leader has to be not only Ph.D but with a 10 years to 15 years of experience into that particular.

[Unknown Analyst]

Sir, how big was this team, say, 3 years ago?

[Beni Rauka, executive]

So as of now, we have about 100 plus, and then 3 years back, it was about, I think, 82 or so.

[Unknown Analyst]

Perfect. Perfect. That's it from my side.

[Operator]

[Operator Instructions] As there are no further questions, I now hand the conference over to Mr. Ronak Saraf for his closing comments, Mr. Saraf?

[Ronak Saraf, executive]

Yes. Thank you, everyone, for taking your valuable time for attending our con call. We will keep you all posted for any further updates. I request you all to kindly send in your questions that may remain unanswered. An audio recording and the transcript of this call will be uploaded on our website in due course. Looking forward to host you all in the next quarter. Till then, stay healthy, stay safe. Thank you.

[Mukund Kabra, executive]

Thank you, everyone. Thank you.

[Operator]

Ladies and gentlemen, on behalf of Advanced Enzyme Technologies Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines. Thank you.