Manish Gupta: Indegene is a unique company addressing a very large market. The life science industry is north of a $1.8 trillion industry and continues to grow. In this very large industry, we work with all the top 20 global pharma companies and even beyond them, we work with another 45 companies, which makes our total active customer base 65. These companies are transforming by doing more and more outsourcing, shifting their budgets towards more digital channels and it makes us optimistic about our future as a company.
Well, if you see so far, the company has done around 13 odd acquisitions. How many more have been lined up for FY25 as now the company will be debt-free post this fundraise?
Manish Gupta: Absolutely, the company is debt-free. We have a significant amount of cash on our balance sheet. And more importantly, Indegene has been very good at doing acquisitions, identifying companies, integrating them, bringing and integrating people as part of their teams, taking some of the capabilities and take tech as part of our solutions to have an enhanced solution for the customers and more value add to our customers. We have a fairly active corporate development team, our front-end team members are looking at potential acquisitions at any given point of time and we have a fairly healthy pipeline. Whenever we find something, which can enhance our capabilities, we will do those acquisitions.What is your outlook in terms of how one should look at the margins going forward? What is the current margin rate and sustainability? What is the outlook there?
Suhas Prabhu: The margin, especially at the EBITDA level, has consistently grown from 18.8% to 21.9% on December 23. We will look at sustaining and growing the margins as we go forward. And another aspect, given the proceeds from the IPO would go towards retiring the loan that we have on the books, would also mean that our interest costs would go down to zero going forward and that would also have a positive impact on our PAT margins. So, we look forward to enhancement not just in the EBITDA margins, but also our PAT margins should look a lot higher than today as we go forward.
Given that Indegene provides multiple services like contract research, contract sales, BPO, what is the kind of competitive intensity in each of these segments that you are seeing?
Suhas Prabhu: As we already know that this is a space where the spends are significantly high, the operation spends are more than $150 billion in the areas that we operate and is projected to go towards $200 billion and there would be a competition when there are these large spends. But what we are excited about is the opportunity in front of us. Given that the market is ever expanding, the technology is ever evolving, and the needs of the consumers of our customers would also keep evolving and that provides us a wonderful opportunity to get in deeper and become a much more credible player in the future. If you could tell us which are the other markets that the company is looking at for expansion?
Manish Gupta: Indegene is a global company with a very significant global footprint. We get 66% of our revenues from the United States, 30% from Europe, and the remaining 4% is split across multiple geographies, including China, Japan, India and LATAM. We will continue to focus on these markets, all the markets I spoke about and support our customers globally.