Quoting from the Q3 FY17 concall transcript:
Sir you had a specific program, which started in Q4 of last year on a new enzyme and supply. If you recall the numbers were hitting about 80 Crores to 90 Crores per quarter, we still could not understand the extent of drop which you have seen this quarter in the revenue line that is one question? Second question even the gross margins have contracted, if you could give some more knowledge or light on the current quarter performance and second how do you see this panning out over the next one year?
CL Rathi: Thank you so much. Actually it is only that one customer who overbought and that is why the numbers would got skewed because they suddenly bought because as you know we are a biotech company where we have very high margin business and our other expenses are more or less very static like same number quarter-to-quarter. Now when you have a low number sale, then you will see all number changing and when you have too much higher sale, again you see too much variation there. Otherwise when look at from year-to-year perspective what we have been communicating right from the day 1 to all the investors that listen, this is a very steady business, very, very sticky business. Our customers are very, very sticky, but because of B2B customer sometimes they do make error in their own projection.
My guess is that USFDA and regulators can come into the picture either directly or indirectly in the Human Nutrition segment, other industrial enzymes may not come under their purview.