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IOL Chemicals and Pharmaceuticals Ltd
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Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY '25 Earnings Conference Call of IOL Chemicals and Pharmaceuticals Limited. From the management, we have with us today Mr. Pardeep Khanna, Chief Financial Officer; Mr. Abhay Raj Singh, Senior VP and Company Secretary; and Mr. Rakesh Mahajan, Advisor Finance and Strategic. We also have an Investor Relations team from Adfactors.
[Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Darshan Mankad from Adfactors PR for opening remarks. Thank you, and over to you, sir.
Thank you, Neha. Good afternoon, everyone. We welcome you to the earnings call of IOL Chemicals and Pharmaceuticals Limited for the second quarter and half-year ended September 30, 2024.
Before we begin the earnings call, I would like to mention that some of the statements made during today's call might be forward-looking in nature, and hence, it may involve risks and uncertainties, including those related to the future financial and operating performance of the company.
Please bear with us if there is a call drop during the course of the business or the conference call. We would ensure the call is reconnected the soonest.
I would now hand over the call to Mr. Abhay Raj Singh for opening remarks. Over to you, sir.
Thank you, Darshanji. Good afternoon, everyone, and a warm welcome to the second quarter and half year, ended 30th September 2024, earnings conference call of the company.
First of all, I would like to thank all of you for joining this call. I hope all have gone through the results and the investor presentations available on our website and the website of exchanges.
India's economy shows resilience with Deloitte projecting 7% to 7.2% GDP growth for FY '24-'25, keeping it among the fastest-growing large economy.
A stable, modest oil prices are also expected to ease import base and lower production costs by reducing the cost of imported raw material. API prices remain subdued as seen in the previous quarter with increased volume and new market driving growth in this segment.
Further, margins were challenged by output prices; however, to some extent, it was supported by lower input costs and improved operational efficiencies. As the growth of our key API products is being driven by several global health trends, the long-term outlook on the API business looks good.
To provide insight into some of the major products in our Specialty Chemicals segment, the Indian ethyl acetate market is expected to experience significant growth, driven by rising demand across industries such as pharmaceuticals, food and beverages and coatings. Its versatility in applications like automotive coatings, packaging and personal care products further fuels demand with a strong export relationship to markets such as Italy, Belgium and UAE.
On the company front, we would also like to share a major update about recent land additions. We bought 101 acres of the land alongside Chandigarh-Bathinda National Highway at about 25 kilometers from the existing plant at Barnala. This land will be utilized for the establishment of greenfield manufacturing facility for expanding the company's business activities after obtaining the requisite approvals.
With this update, I now hand over to call my colleague, Mr. Pardeep Khanna, who will brief you about the financial performance for the quarter and first half year -- first half of the financial year 2024. Thank you.
Thank you, Mr. Abhay. Good evening, everyone, and thank you for joining us today to discuss our performance for the second quarter and half year ended 30th September '24. I will take you through standalone financial highlights for the second quarter and first half of the financial year 2024.
The total standalone income of the company in the second quarter of the financial year '25 stood at INR 532 crores as against INR 552 crores in the second quarter of the financial year '24 and INR 510 crores at the previous quarter ended June '24.
EBITDA for the quarter was INR 48 crores as against INR 71 crores in the corresponding quarter of the financial year '24 and INR 58 crores in the previous quarter ended June '24. EBITDA margin for the quarter is 9% as against 12.9% in the corresponding quarter of the financial year '24. In the previous quarter ended June '24, EBITDA stood at 11.4%.
The net profit in the second quarter of the financial year '24 was INR 19 crores as against INR 38 crores in the second quarter of the last year and INR 30 crores in the previous quarter ended June '24. EBIT margin for the Pharmaceutical segment was at 8.4% in second quarter of financial year '25, while EBITDA margin for the Specialty Chemicals segment was 0.8% in quarter 2 of financial year '25.
Margin was under pressure due to challenges in average selling price as opposed for second quarter of the financial year '25 is INR 140 crores as compared to INR 130 crores in the corresponding period of the last year, where it was INR 150 crores in the previous quarter ended June '24.
The CapEx for the quarter is INR 83 crores, whereas it was INR 41 crores for corresponding quarter of financial year '24 and INR 50.8 crores in previous quarter ended June '24. R&D for the quarter was INR 5.8 crores as against INR 4.5 crores in the corresponding quarter of the financial year '24 and INR 4.7 crores in the previous quarter ended June '24. So consolidated cash and bank balance stood at INR 157 crores as on 30th September 2024.
With this, we open the floor for a question-and-answer session. Thank you very much.
[Operator Instructions] The first question is from the line of [ Udit Gupta ] from Ashika Stock Broking Limited.
Sir, my first question was, we see considerable increase in employee expense on Y-o-Y and Q-on-Q basis. Could you share some colors on the same?
Sir, your voice is not clear. Can you repeat the question?
We see an increase in the employee expense on Y-o-Y and Q-on-Q basis. So could you shed some colors on same?
Employee expenses.
The employee expenses increased in this quarter due to variable pay for the previous year paid in July '24. So it will affect our employee costs. So it has increased by approximately INR 6 crores during the quarter.
Understood. And what are the reasons for Y-o-Y increase?
Sorry?
What are the reasons for the Y-o-Y increase, year-on-year increase?
Primarily due to the regular increments for this financial year and also the increase in the manpower, which for upcoming projects and increasing capacity of non-ibu segments.
Understood. And one more question was that -- the land that you have acquired recently. So it will be for the Pharmaceutical segment or chemical segment? Or how will be the arrangement between the same?
As already we updated in our press release, it is for the existing business of the company, that means both chemical and APIs.
So can you just throw some light on how will be the arrangement between both of them, both of the segments?
It is yet to be decided, but first, our target was to acquire such huge chunk of land.
Okay. And what kind of products are we planning to manufacture? Like will it more be of complex products? Or how will it work?
Primarily, it is again in bulk API and chemical-only -- organic chemical primarily only.
[Operator Instructions] The next question is from the line of [ Nakul Dev ] from [indiscernible] Investments.
I just had a couple of questions. Firstly, could you help give a breakup of the export percentage of non-ibu API portfolio?
Yes. Last quarter -- from the last quarter, it has increased by around 20% to 25% from the June quarter and around double from the last year's quarter for export of non-ibu segment.
Okay. My next one would be, if you could help elaborate on the export mix being targeted for the non-ibu portfolio and the timeline for achieving it. Could you give me some highlight on -- some color on that, if possible?
As you must have gone through that, we have got the ANVISA approvals, European approvals and other regulatory market approvals. Non-ibu segment, our target is around 50% export collection from non-ibu segment within upcoming 2 to 3 years, which is presently around 23% to 24%.
Okay. Got it. Got it. And my final question would be, has the SI Group's exit from the ibu space started benefiting the company? Or have new players entered the ibu market? If you could provide some insights into this current scenario, it would be helpful.
They have officially declared and informed to SEC, US, that they are going to close their ibu manufacturing facilities due to high cost of production and some old technology, and they have targeted to close by March '25.
The next question is from the line of Harshal from Rashi Fincorp.
I just wanted to ask about the market outlook of non-ibuprofen product. How are the prices looking going forward?
We think the prices of non-ibu segment, primarily paracetamol and metformin, was on the downside since last 2 quarters -- 2 to 3 quarters. But we hope that they are now bottom out, and we hope for some marked jump in upcoming periods for these major 2 products.
Okay. Okay. So can you shed some light, like are you going to introduce more higher-margin products in the future?
As of now, we are concentrating more on stabilizing all these existing products in hand and increasing the capacities in the markets where we can get more sales realization from the regulatory market. After that, we may think about diversification in new products.
Okay. Can you shed some light on the approvals that we are -- we were going to get from the U.S. for the DMFs?
We have filed our DMF and waiting for their visit and filing of ANDA also from our customers.
The next question is from the line of Hemant from [ Norasia Trading ].
Sir, I just wanted to understand what is the rationale behind taking Chinese approval for metformin. Considering VCDA is coming from there, so I'm sure they would be having the cost leadership. So any -- like I just wanted to understand.
So -- because Chinese approval helps with global players available in China itself to procure the metformin from India. This is -- this will help us to attract the global players to create the alternatives in China as well. So this is what the only -- this is the philosophy of the company. In many companies, they would like to have more than 1 supplier for any particular product. So this is also helping us into that -- to suit their strategy.
Okay. Okay. And sir, have we started any export in the regulatory like European market, like considering we have been almost more than 12 months since we got many European approvals for many of our products? So are the exports happening now? How are things on ground?
Yes, we have regularly started exporting for our non-ibu segment. Earlier -- 1 year back, it was only 10% of the revenue for non-ibu. Now it is around 24%.
So sir, how soon can we expect to reflect in numbers? Because I see -- I mean, the current year -- I mean, the current quarter, I mean, the numbers are not reflecting. So any particular reason how it is?
The numbers, because 24% in export market and 76% in the domestic market, where the prices were very, you can say, on the downside from the last 3, 4 quarters substantially, especially for paracetamol and metformin. But in a slow market, we hope that the prices are sustainable. And as we have just entered around 1 year back in the European market, we hope that within 2, 3 years, our share will be increased in that market also. When the -- and thereby, all our numbers will be reflected after selling in the European market.
Okay. And sir, about the Chemical business, any signs of recovery in the ethyl acetate business? I mean, considering the acetic acid prices going down. So do you see anything out there?
The prices of acetic acid has been sustained -- you can say stable from the last 1, 2 quarters. And they are -- in the last quarter, we little bit had some inventory in our basket. Ethyl acetate prices are also stable according to the acetic acid prices. You can say delta is being maintained for ethyl acetate prices along with acetic acid stable prices.
Okay. One last question, sir. Sir, in the last con call, some participants said that some Indian producers coming up with 12,000 metric tonnes of ibuprofen API capacity. So do you -- like any idea who is coming with this, with such a big capacity?
Yes. One company based out of Hyderabad, SMS Pharmaceuticals Limited. They have announced that -- around 2 years back we are coming with the capacity of around 12,000 tonnes.
The next question is from the line of Maulik from B&K Securities.
Sir, just wanted to check if there's any intimation from the U.S. FDA regarding the inspection because we have products which are awaiting approval.
So U.S. FDA is since long pending. But as a practice, they never intimate us in the -- well in advance. They intimate 2, 3 days max to max, so -- but we are expecting it that it is going to be soon. And we also received some intimations that whenever they will be coming, they will be intimating the other facilities of ourselves. That is the intimation we received. But when they are coming, it is not -- I mean, they have not intimated in this regard. So -- but our assessment is that they are coming in very recent time -- sooner -- they will come soon.
Okay, sir. And are we filing any new ANDAs or DMFs?
So ANDA is not filed by us. The ANDA is filed by the formulator. We file the DMF. For all our new non-ibu products, DMF is already there. So ANDA is filed by -- the ANDA for the metformin and the fenofibrate is already filed by some clients.
Okay. Metformin, and sir, which product is that?
Fenofibrate.
Okay. Okay. And sir, just one clarification. You said the contribution from non-ibu products would be increasing to 30% in the next 3 years from currently 22%, 23%. Did I hear it right?
We are targeting -- we are focusing -- because we are focusing to shift the sales from domestic market to international or recognized market. So we hope that in the next 2 to 3 years the export realization of -- or from this non-ibu business will increase to around 50%.
Okay. Okay. Precisely from exports. Okay. Okay.
[Operator Instructions] The next question is from the line of Amit Agicha from HG Hawa & Co.
Sir, what is the timeline for operationalizing the newly acquired 101-acre site? And what is the CapEx involved in that?
We have just got possession of land, and subject to approval, which usually took 6 to 8 quarters in getting all regulatory approvals. So we can't expect the commercialization until FY '26. After that, it will be commercialized.
And sir, what is the CapEx involved?
CapEx, yet to be freezed, but we will update in the [indiscernible] accordingly within [indiscernible].
[Operator Instructions] The next question is from the line of [ Sheikh Mohammed ], an individual investor.
Sir, my question is a follow-up question. One person has asked that aren't we -- are we getting benefits from SI Group, means I think they have closed plant in September, and I think already 2.5 months is over. Are we getting any benefits from that closure?
So SI Group is in the U.S. market. And the BASF is also present in the same U.S. market. And the U.S. market, they are not attracting the API, basically bulk API or bulk molecule into the U.S. itself. So basically, this gap, whatever is being created, it was not the huge capacity they were operating. They were operating with a smaller capacity. So this is not the benefit is going to be drilled down to the whole world. Basically, the U.S. companies might get some benefit because most of the formulations have been accepted by the U.S. companies through the Asian path. So we don't expect that this is going to impact in any manner or in a big manner.
Okay. Sir, what about new CEO coming -- joining to the company? And can you give me the timeline -- means, around timeline that in these months, U.S. FDA inspection will be completed?
So we are looking into it. And we are finalizing. Because we need to -- we are finalizing it, we can't comment that how much time it is going to take. So whenever any candidate is finalized, definitely, we will be coming out with the announcement at the appropriate time.
And about U.S. FDA.
About U.S. FDA, the -- like we said in the previous -- in the response to the previous question, U.S. FDA -- I mean, we are expecting to happen it soon, but we are not sure when it is going to happen. U.S. FDA also intimated that they will be -- whenever they will be coming, they will be inspecting the facilities, the additional facility proposal for which ANDA is already filed by some of our clients.
Okay. Sir, I think 2 months have been over since we are not having any CEO. How many -- is there any SEBI guidelines to having CEO within these much months or something?
No guideline as such because we are having a Managing Director. We are also having Joint Managing Director. So we are having all the CEO -- KMP positions already filled in, so there is not necessary to having any CEO necessarily.
Okay. Okay. Sir, this is my last question. Sir, regarding the margin guidelines, sir, [Foreign Language] accurate guidance, [Foreign Language]. When will we achieve the guidance the management has promised earlier, 13% to 15%?
Yes. So basically -- you are right that we are also finding -- I mean, the guidance which we provide and we keep on providing are we are not hitting those guidelines. But see, this is beyond our control also because what we say, we say at the present situation and the time. When we expect something, we discuss that with all the investors. But you know there are -- this market is very volatile, and this world is getting volatile. So this is practically getting impossible to talk about what will be happening after 1 year. So that is the main reason we are not able to hit our guidelines or guidance.
We are not even to -- able to improve the top line also. From last 3 to 4 years, top level has not achieved...
The reason is same. Let me explain this in detail. In the ibu, most of the ibuprofen, the price has gone down, and there is a low demand also for the ibu globally, and we are expecting that the demand for the ibu will increase very soon. And if we talk about the non-ibu products, we are sampling where we got the CEP, we got the Brazilian, we got the other Korean approvals also. The work -- development work is happening across all customers. Very good quality customers are auditing us on a regular basis.
The moment this thing goes positive, you will find or you will see the significant improvement in the top line as well as the bottom line because top line is not meeting because of the reductions in the prices. Whenever the prices is going a little bit up, you will see the huge difference into the top line, and all the top line will directly drill down to the bottom line.
Okay, okay. Sir, not heard of anything since long from the research and development department. Any update on the pattern we are having for manufacturing statin drugs and sitagliptin?
No major development as of now. If there are any development, these are premature, so we would not like to discuss right now.
Sir, we have filed 15 DMFs, right?
17.
Yes, 17.
17 is for CEP and 15 DMF.
Yes, you are right, 15 DMF.
Okay, sir. So if we suppose we are getting the U.S. FDA approval, so all these 15 DMFs will get approved or it will get approved in a step manner?
No, no, no. See, basically, how the U.S. FDA approval happens. So we file the DMF. The DMF is available thereon for the reference to the client in case of any formulators wants to purchase any molecule from us, against which DMF is already filed, he files the ANDA. In the ANDA, they mention that they would like to take the -- any medicine or API from IOL. Then the U.S. FDA review and approve their ANDA.
While approving their ANDA, they also review the company or the facility from where they are acquiring this molecule. So ANDA is filed against 3 U.S. FDAs for ibuprofen, metformin and fenofibrate. Whenever they will come, they will approve these sites. And they will also mention in their report that they also -- other facilities also working there in. So any time when the formulator for the next drug they file the ANDA, the approval for the other molecule gets mostly online without inspecting the site. And that also depends on the nature of the drug.
Can you name those 3 drugs again? Fenofibrate, metformin...
And ibuprofen.
[Operator Instructions] The next question is from the line of Rohit from Samatva Investments.
Sir, my first question is on ibuprofen. So how have the prices been for the last 2 quarters? That's my first question.
And second on ibuprofen itself, considering SMS Pharma coming in, so if you could just indicate what is your total production capacity globally available? And what is the current demand for ibuprofen?
As we've already discussed, the prices of ibuprofen has been corrected to some extent from last quarter also, primarily domestic prices. This may be reason that SMS Pharma has launched ibuprofen from last 1.5 years. So the prices we think it is bottom out in the domestic market. And as regard to the total capacity of ibuprofen, it is somewhere near 35,000 tonnes globally. And capacity is running at -- as far as IOL is concerned, it is 75% to 80%.
Sir, and the prices would be less, around $10?
A little bit, the export prices are more than $10. Domestic prices are around $9 to $9.25.
Sir, my second question is on paracetamol and metformin. So overall, if you could highlight the demand scenario globally?
The demand of paracetamol is a little bit started increasing from the last 1 month along with a little bit increase in prices also. And the demand of metformin is almost stable with the stable prices of output.
The next question is from the line of [ Saket Kapoor ] from [ Kapoor & Co ].
As our current participant is not answering, we'll take our next question from the line of [ Trisha Shah ], an individual investor.
Yes. Sir, Y-o-Y decline in the revenue in ibuprofen, is it purely due to decline in realization?
Ma'am, we are not getting the question.
Can you please repeat your question?
Yes, yes. So what my question was, the Y-on-Y decline in the revenues in ibuprofen, is it purely due to decline in the realization?
Yes. Yes.
Okay. So could you give us the capacity behind this?
I believe we are running -- around 75% to 80%.
Okay. So are we seeing substantial stress on the particular product on API space? Or is it overall realization stress the same overall on all the products?
No, no. Other non-ibu products like paracetamol has just -- getting good response from the market in the last 1 month. We are getting good price variation for clopidogrel and this fenofibrate also. So it depends on the product to product. So the prices are bottom out, and now, the prices, we think, hope to increase.
The next question is from the line of [ Hemant Kanuga ] from [ Norasia Trading ].
Please correct me if I'm wrong, sir. In one of the conferences, it was mentioned that Sanofi is interested to buy paracetamol for -- like from us. So could you throw some light like what conditions or anything, if they have mentioned anything?
We have just discussed that Sanofi is our biggest -- one of the biggest customer for ibuprofen. They are also requiring paracetamol. So they are visiting our facilities regularly. And when they go through inspection of our plant for paracetamol, we expect they may start giving some orders too.
Is it Sanofi India or is it Sanofi global business, like entire...
Yes. For ibuprofen, we are a global supplier of Sanofi. So we are supplying ibuprofen to all over the globe through Sanofi.
Yes. But for paracetamol, they inquired for like entire -- like for the entire -- is that only for the India unit?
We hope that the [indiscernible] and team looks both for domestic and global also.
Okay. Okay, sir. And secondly, sir, considering that SMS is coming with such a large capacity. So how are we placed in front of them considering we are based in the North, so we might have some location disadvantage they being in the South and many customers of ours are also based in South? So can you throw some light on that, sir?
So -- I mean, we cannot comment on the competitors who are coming up and who are not because we have our strength, they might have their own strength. So these all things will be handled whenever somebody is coming up in the manner because -- and one thing we know, we know about our strength. What our strength is that we are 100% backward integrated with respect to this. So this mitigates all the locational disadvantage. Rather -- I mean, for API, we do not see that location is that important. That is the reason we procured the land in the nearby area also. So all these things, we do not think -- the competition is always there for everything. So it's okay. Competition is there. So we are depending, we are counting on what are our strengths. We are supplying the ibuprofen for many years. We are having around 30%, 35% global share. We are having a top of the world clients with us, and the clients are associated with us for last many years. So these are our strengths. We can always talk on our strength.
Got it, sir. Well noted. And sir, last question, sir, can we expect some improvement in this quarter compared to the last quarter in terms of numbers since we're almost in the middle of this quarter?
We think that numbers will remain more or less same with slight improvement.
The next question is from the line of [ Saket Kapoor ] from [ Kapoor & Co ].
I joined a bit late, so sorry for repetition. Sir, if you could just sum up to us, rather, the factors which have led to this decline in the profitability? And where do you see these factors, whether gaining strengths or reversing, going ahead? And how do -- what is the management understanding of how H2 looks going ahead and the efforts by the management to improve the earning for the company, sir?
The decline in bottom line is a combination of not single product, but is a combination of various factors also, like in the price, when the prices are coming down, the closing inventory is also valued at the lower value. So there is a little bit differences of valuation aspect also that's added in the decrease in the net profit also.
Same is the little bit of higher cost of inventory, which we have bought around 2 quarters ago from China, which like acetic acid and others that also part of this decline in some bottom line. So now we're hoping that these prices will remain stable for raw materials. And the prices of finished products are already bottom out as per our or peer review -- peer's review. So we expect that H2 '25 may better than FY -- this first H1.
Okay. Sir, who are our peers and competitors in the listed space or if you could give like-to-like comparison in the space...
There are lot of peers in different products. These are product wise. But for ibuprofen, our major peer is Solara Active Pharma in India.
Okay. Sir, when you mentioned that there was an impact of inventory markdown because of the decline in the raw material prices. Can you quantify, sir, what was the impact of the same?
You can discuss offline also. We can give you the whole picture, where it is, how much amount and how much impacted the bottom line.
So this will not continue as of now, the prices have bottomed out even for the RM also, and the higher raw materials which we were carrying is now being consumed or been marked down also? So the impact will not be felt -- should not be felt for the ensuing quarter. This understanding is correct, sir?
Yes. Yes.
Okay. Sir, now coming to the capital work in progress part sir. So we have been -- one of our -- one of the selling feature of the company is we are continuously investing in the business. However, the returns are not actually matching because of the market conditions and other factors. So our closing capital work in progress is INR 122 crores as on 30th September. If you could just outline which projects, which segment have we put this money? When are we going to capitalize? And what would be the CapEx for H2?
Actually, the CapEx is a mix of infra, land and technique development and also in the environmental sector. So the CapEx is also -- we incur from the internal accruals. And for the results for the same, CapEx will be shown in the next 1 to 2 years. So majorly, CapEx is for the development of infra, also for the land and also for the new techniques and acquisition.
But will it lead to any increase in volume going ahead for H2? Are we seeing any incremental volume capacity that will kick in post the capitalization or we will continue with these volumes only? And what is our utilization levels currently across the product profile?
The INR 133 crores of our CapEx also increased -- also includes some growth CapEx, which we updated within FY '25 only, and we will update all of you in the -- through stock exchanges. And as regards product utilization, ibu is running between 75% to 80%; metformin and paracetamol are running around 90% to 95%.
Sir, you mentioned about informing the exchanges. I missed your comment on this. Can you come again, sir, on the CapEx part?
Some growth CapEx are also in the CWIP.
That will be in this -- capitalized in the current financial year only.
We hope for that.
Okay. And sir, your thought process on the guideline which you gave earlier for 2030, say, 5, 7 years down the line. How aligned are we taking into account the current business environment? And how confident are we to achieve that goal that was set when we have spoken in earlier con call, the message which you have given? So what should investors look from this organization, say, 3, 4 years down the line? And do you think, sir, that our margins, profitability, [Foreign Language]?
As regard to our discussion for 2030, as regard to our production, our quantitative figures, we are near to our projection, which we have internally discussed and tried to achieve by 2030. And we are in line with -- as regard to our internal production and internal quantitative. But as of now we can't predict the exact selling price or there may be volatility in the raw material prices. But as regards the quantitative figures, which are all -- which are in our hand, we are very close to that projections.
Right. And in terms of the bottoming out in the profitability part, sir, can you -- what is your take currently with the type of trough we have hit in the term -- in the PBT...
Like we see product -- paracetamol, we think the prices are already bottom out.
Okay, on the key product, sir. And ibuprofen also sir?
Ibu in export market, we are maintaining numbers. In domestic, it is already bottom out, and we expect that there may not be any south side reduction for prices.
Sir, last point, we have some duty protection also for ibu, which we got recently. So taking that into account also that -- we have benefited from the same asset globally, how are new capacities in this segment coming up? Do we have anything in the pipeline for ibu in particular?
Can you repeat your first part of the question?
Sir, taking into account some duty protection was there from -- for import of -- there was some ADD that was imposed earlier. So what are the benefits that we have received on account of the ADD, antidumping duty that was proposed? And also, sir, taking into account...
As of now, there is -- I don't know about any dumping duty -- anti-dumping duty in the ibuprofen. I think I'm yet to go through that.
Okay. Okay, sir, that is my incorrect time on that point, sir. And globally, are there any further capacity additions in the products where we operate or where we are dominant?
No, we have not heard any new plant for ibuprofen in Europe or U.S. or any other geography?
The next follow-up question is from the line of Pankaj Kumar, an individual investor.
Yes. Sir, my question is regarding that like we are not seeing as such any growth in ibuprofen and other molecules. So are we planning a contingency like -- because US FDA is also queue, so I don't -- like as we are not having any clarity when they will be visiting the site or not, so any contingency so that we can increase our basically profits and revenue by introducing any other drug or something like that in the market that we are catering to?
Our existing products are very stable products. It is a regulator who has to take their own time, whereas we can do -- we are developing our own cost efficiency techniques and market strategy for the existing product. But shifting from these products to any new product, that is not under any planning of company.
So it floats like -- shifting like adding a new product to the portfolio. And one more query sir, like I was just reading online, like ibuprofen prices are increasing globally, like 15% to 20% they have increased since 30th of September '24, in October and November '24. Do we have any kind of benefit of that or it's like not relevant to us?
Which prices?
Ibuprofen API prices basically. Ibuprofen API prices, they are increasing globally since 30th September '24. I just read it online.
No, we are not aware of such publication basically.
Okay. And the first part of the question, like not shifting, but adding something new to the portfolio.
So for developing the new products, as we also responded to this question previously, we are having the ibuprofen as well as the non-ibuprofen products. So our focus as of now is to shift our focus from domestic supply to the regulated market supplier for non-ibu products.
With regard to the development of the new products, the team is already and keep on working -- our R&D team keep on working always on those products. And they also work on the process improvement. So that work is a continuous -- development is a continuous process. So we will let you and let you know, all the investors, with related to any appropriate announcement in this regard at an appropriate time. But as of now, we do not want to do any comment on any product development, which is premature.
The next follow-up question is from the line of [ Sheikh Mohammed ], an individual investor.
My question has been answered.
[Operator Instructions] As there are no further questions from the participants, I now hand the conference over to Mr. Rakesh Mahajan for closing comments.
Thank you. Thank you very much for joining us today and discussing our second quarter and half year ended 30th September 2024 performance. The company continues to take proactive steps to extend facilities, capabilities, optimizing market strategies, streamline cost structures and enhance operational efficiencies, all aimed at improving revenue and profitability in the coming periods.
Despite the current challenges, we remain confident in the long-term growth potential of the business. Thank you very much.
And the transcription for this call will be available shortly on the website of the company and stock exchanges as well. In case you have any further questions, please feel free to write to our Investor Relations team, Adfactors. Thank you, again. Have a good day.
Thank you. On behalf of IOL Chemicals and Pharmaceuticals Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.