IPCA Laboratories Ltd

Ladies and ge Conference C lines will be i after the prese signal an ope conference is

I now hand th Thank you, an

I will hand ov floor for ques Thanks, Nitin answer given expectations. business face pursuit. You m

Business perf quarter. Mid- fastest-growin '25 and late S as per IQVIA IPCA has deli Both on acute Acute segmen 12%. And on around 17% g

IPCA continu 2.14% as aga 2.03% as aga point improve almost around CTD-T has n rank gain.

On export for branded prom

Nov Page 2 of 17 entlemen, good day, and welcome to the IPCA Laboratories L Call, hosted by DAM Capital Advisors Limited. As a remind in the listen-only mode and there will be an opportunity for yo entation concludes. Should you need assistance during the confe erator by pressing star, then zero on your touch-tone phone. Ple being recorded. he conference over to Mr. Nitin Agarwal from DAM Capital A nd over to you, sir.

Good afternoon, everyone, and a very warm welcome to IPCA conference call hosted by DAM Capital Advisors Limited. On nting IPCA management Mr. A.K. Jain, Joint Managing Directo mpany Secretary and Company Counsel. ver the call to Mr. Jain to make the opening comments, and th tions. Please go ahead. n and DAM Capital for organizing this call. Today's call and n may include some forward-looking statements based on our It must be viewed in conjunction with the risk that pharm es. Our actual future financial projections may differ from wh may take your own judgment on information given during the ca formance. Domestic formulation business delivered a growth September 2024, IPCA is ranked as the 16th player in -- as p ng company among the top 20 players. IPCA has outpaced the i September '24. Overall, IPM growth is around 8% and IPCA ha A around 13% growth. And mid-September '25, IPM growth i ivered around 14% growth. e and chronic segment, IPCA has delivered better growth compa nt in this quarter has grown by almost around 7% and IPCA n chronic segment, your market growth is around 10% and w growth as per IQVIA. ued to improve its market share. In Q2 FY '25, our market shar ainst 2.04% in Q2 FY '24. And mid-September 2024, our mark ainst 1.92% in mid-September '23. So overall, there is almos ement in the overall in market share. And in second quarter, th d 10 basis points. We have now 6 brands among the top 300 b ow entered in top 300 brands list with 193 rank in mid-Septem rmulation business, we have delivered around 15% growth fo motional business has declined by around 6% in this quarter. Ge

Limited Q2 FY '25 der, all participant u to ask questions erence call, please ease note that this Advisors Limited. A Labs Q2 FY '25 the call today, we or; and Mr. Harish hen we'll open the d discussions and r current business maceutical industry hat is projected in all. h of 11% for the er IQVIA and the industry in Q2 FY s delivered almost is around 8% and ared to the market. growth is around we have delivered re has increased to ket share is around t around 11 basis he improvement is brands in the IPM. mber 2024 with 88 or the quarter. The eneric business has

grown by aro 85%. So ove around 15% Domestic bus API business And overall A same period l

On margin fr 20.86% in sam EBITDA ma improvement in product mi alone and con '25.

Having giving The first ques So sir, the fir are your revis of the banks i Mr. Kunal, y question. Is it better now Kunal, in the Sorry, sir, sor Yes, better no Sure. Sir, I ju margin on a updated expec If you look at that -- I think for the full ye against 21% g Overall growt for the whole

by almost around usiness growth is d by around 5%. or the quarter. But me kind of decline. t INR335 crores in s 22.89% against Our consolidated r Q2 FY '24, an ue to improvement ad. Both the stand- ven before the FY s. r on the top line -- performance what onsumption? Some you to repeat your line and EBITDA at would be your und 21% as against therefore, overall, be around 22% as will also be better. %. As against this, % to 10% now.

Okay. So prob and the margi achieving tho quarters? And Unichem, we Unichem sour will also hav currently buyi So in current Unichem's im have reduced products, the in API.

Now the who increment is procurements the common g all got extend As far as mar is going to ta filing in the m start, only the straight away

So that proce yet pending. L around 1 mor But our initia able to get aro I think that w margin of Un filing, the app And sir, last plant clearanc I think overal goods to US, are highly ou these were all technically, it

Nov Page 4 of 17 bably at the absolute EBITDA level, more or less the same beca ins. Sir, for the Unichem business in terms of synergies, where ose synergies? What have you already realized in this results in d where do we see that going in the next 3, 4 quarters? e have taken over -- we have spoken about many synergies pa rcing product from us, work is still going on. That portion has ve some kind of cost reduction for them, a few of our APIs ing from outside. And I think May, it may take around 5, 6 mon t year, practically nothing of that nature will happen. We mprovement in the API processes, where I think almost aroun d overall their manufacturing cost and validations are over. improvements are almost around somewhere between the 25% ole process of filing and then taking approval and that will sta already done and the balance is in pipeline already. An are concerned, a lot of benefit has already come as buying are group. And whatever IPCA benefits are there in terms of lower ded to the Unichem also. So those advantages come. rket extensions are come, there are a lot of work are in pipeline a ake a little longer time because it's post validation then stability market and all that. So this may take one more year to -- for tha e products where the -- no further bioequivalences are to be d your U.S. dossiers can be filed in Europe and various other mar ss is going on. Right now, a few products are already filed, wh Larger product range to extend to the other market is going to ta re year because it's all regulatory process and what of data need al calculations, where we were talking that on second year onwa ound INR200 crores kind of EBITDA margin. will surpass in the current year itself. In first half of the current y nichem is INR113.75 crores. All these improvements will keep provals are received and all that. So the process is going on. one, if I may. How is our own US business shaping up now s ces? Have you launched any products? And how is the uptake in ll, we have spent almost around -- up to September around INR3 But most of the goods had reached to them at the end of the p ut of that almost -- which is INR1 crores, INR1.5 crores sales l in stock. And now sales will start reflecting from the third qu t's not eliminated in consolidation practically in the power. So

ause lower top line are we in terms of the last couple of art. As far as your not started, which s, which they are nths. also talked about nd 6 products, we Now all these 6 to 30% reduction art. Fixed product nd as far as the now shaken up by r your pricing, that and we said that it y studies and then at kind of things to done and wherever rkets. hich approvals are ake another almost ds to be generated. ards, we should be year, the EBITDA p on coming in the since we have the n those products? 30 crores worth of eriod, I think they has happened and uarter onwards. So nothing major has

happened. W year, we will And this is U Bayshore? No, we have Unichem. Bec under one um business is al Unichem. So kind of setup. Congratulatio Mr. Dharmil, Is this clearer Yes. Please pr My questions around INR2 around INR90 the guidance? I think overa crores in the c Got it. And EB EBITDA mar improved to 1 Got it. And 1 into how muc the pricing sc Pricing-wise, kind of price around 12%, business has the other ope there in the fu

Nov Page 5 of 17 e already sent these produces and another 3 are in pipeline. S launch around -- almost around 6 products.

U.S. sales will be recognizing in our P&L directly or will r said that Bayshore entity, wherever business is there, that was cause in order to have entire synergies that U.S. business wil mbrella. So we think Unichem is very bigger business. All these lready transferred to Unichem. And entire business will also there are no duplication of the old marketing and administra . It will be all done through Unichem. stion is from the line of Dharmil from Dalmus Capital Managem ons on really good set of numbers. may I request you to please speak up. Your voice is coming out now? roceed with your question. are again on Unichem. Earlier in the previous calls, you had g ,000 crores revenue. So while in H1, we have all participant 00 crores. So is the guidance still on the plan? Or I mean, wher ? Is this still achievable for FY '25? all business of Unichem may remain around INR1,850 to IN current financial year. Yes. BITDA margins. rgins, let's say, first quarter was almost around 12.52%. Seco 14.35% Overall, I think it will remain 14% to 15% for the remai 11% revenue growth in the current quarter for Unichem, can y ch was it volume driven and how much was price driven? And i enario for... if you see that there is a margin decline is there, so pricing is h declines are there. So overall, like I said, U.S. business has 12.5%. There is some decline in Brazil and overall contra done well. So overall, for the second quarter, if you look at sales, it's almost around 9.4% improvement is there in current erating income and others including, it's around 11% kind of urther quarter.

So I think current recognize through transferred to the l be done entirely e -- the Bayshore's o be done through ative and all those ment LLP. t as muffled. given in balance of ts and somewhere re are we up to on R1,900 INR1,900 ond quarter, it has ning period. you break it down in general, what is hardly -- 1%, 1.5% grown by almost act manufacturing t the overall -- on t. And taking into overall growth is

expect it to ra Let's say, ove having good c Unit 2 Goa, th utilizations ar Unichem's pro With that, the concerned, as So those capa European app approvals. Unichem? Ar I think we wil Okay. And th Yes, formulat Okay. And wh So far, we ha The next que Limited. Sir, my first q the Piparia un Bayshore Uni going to happ So while we export growth going ahead f the U.S. busin All plants, w Piparia plant plant. So there Okay. All the

Nov Page 6 of 17 And what would be the current capacity utilization in Unichem? amp up over the next 2 to 3 years? erall, Unit 1 and -- Unit 1 at Goa and I think Ghaziabad, bot capacity utilizations, maybe around the 70% to 80% kind of util his is a bigger unit and larger capacity. That's, I think, hardly ar re there. So as the U.S. business and other businesses are extend oduct in various markets and filings and all that. e capacities of Goa plant will be utilized. So as far as the G s far as the Bambi plant is concerned, that utilization is almost a acities -- and that plant is having all other approvals also, all provals and Australia and New Zealand. So there are so many m And are there -- I mean, what is the trend in terms of pro re there any pipeline of products to be launched in next 1 or 2 ye ll continue to launch around 4 to 5 products every year. is would be entirely formulations only? tions yes. hat could be your revenue guidance for FY '26 and '27 for Unich ave not burned it out. So we will let you know in the last qua r. estion is from the line of Surya Narayan Patra from PhillipCap question about the U.S. business. First of all, can you give us s nit -- USA compliance? That is one. And secondly, after the ichem with us, so in the way it has already been indicated th pen through -- everything through Unichem. are seeing a kind of a strong export growth number for Uni h has been muted consistently. So how should one think about for IPCA impacting the growth numbers? And that would be t ness, compliance of Piparia and the growth in the U.S. side. we already received the approvals and also there is no pendin is concerned. So all IPCA plants are cleared already, which e are absolutely no outstanding issues anywhere. 3 units are cleared now.

? And how do you th these plants are lizations out there. round 20% kind of ding the market of Ghaziabad plant is around 30%, 35%. the ROW market, markets, they have duct approvals in ears? hem? arter of the current pital India Private some update about integration of the hat US business is chem, but IPCA's the U.S. business the question about ng issue as far as h includes Piparia

Yes, all 3 unit Okay. Regard Unichem, and Unichem is d muted. On the As far as the b first half of th largely becau almost around that market, s

So that has a around 12% t and is likely t ROW market

As far as you European bus good growth growth. UK, t market. So pr not be any gro that business

Australia and APIs or certa because those in those mark there because

So overall, w Generic busin better growth upgradations half of the ye businesses. So Sir, this the in off thing? It is No, no, no. La Okay. So now Yes, yes.

Nov Page 7 of 17 ts are clear simultaneously, yes. ds to the US business, since now everything is going to b d in terms of the performance so far, what we have seen in th doing well, but our growth numbers are on the export side s e formulation side, can you just clarify what is really impacting branded formulation business is concerned, we have muted grow he current year, we have minus 2% growth on branded formu se of all these currency fluctuations. And I think ruble from 80 d more than 95. So that has reflected and a good amount of bus o Russia and all. a little impacted. I think from third quarter, I think in ROW m o 13% kind of growth. So all of the year, the business growth in to be around 7% to 8% kind of growth for the whole of the yea , branded formulations business. ur generic businesses are concerned, by and large, let's say, fir siness is concerned, except UK, that business is good and we around -- we should have almost for the whole of the year, aro there are certain concerns are coming on pricing and all and ov robably this year, the UK business growth will remain muted owth in that market. So that's the future. As far as Canada busi will have around 10% kind of growth. d New Zealand in the first half was, because of some supply kin ain APIs, and that has impacted the business. So that we ex e shipments have started coming from outsourced API. So there kets. As far as overall South Africa is concerned, we will see som e some tenders are lost there, and that business will have some ki we see a generic business -- your branded business to grow by a ness will also have a similar kind of growth. Distributional bu h this year because last year, the availability of injectables and installations of some additional machines and renovation p ar, that plant was not operating. So this year, there will be bette o overall generics, we will see around 12% kind of growth for th nstitutional business this quarter, bump of what we are witnessin s sustainable. ast year in this period, injectables were not available. w this is a kind of sustainable business and can see ramp up?

be routed through he recent quarters, still the remaining here for us? wth. In fact, in the ulations. So that is 0 level has gone to siness comes from market, we expect n ROW will revive ar so as far as this rst -- as far as the e have reasonably ound 10% kind of verstocking in that only or there may ness is concerned, nd of constrain on xpect the recovery e will be recovery me kind of decline ind of decline. around 8% to 9%. siness will have a because of plant part. So that -- for er growth in those he financial year. ng, it is not a one-

Okay. Sir, in so how do you Overall, Unic stopped. They will also do. S will keep on d we will contin In fact, in the expenses whic What is the k the Unichem R&D spend o there. And Ov Unichem put plant is comm then the next

See, I just wa comparison, c versus interna the percentag tax? Normally, if y levels. And if compared to I India business Then comes t margin, therea last comes is have domestic

Sir, regarding performance, rated. Don't y company plan

Nov Page 8 of 17 regards to R&D. So now after the integration of the US busine u think about your IPCA's R&D versus Unichem R&D? chem R&D, let's say, we were doing some work on biotech y will continue to do work on formulation development for U.S.

So the list will be some products, we will keep on developing, developing. Some products where synergies are better in terms o nue to develop. So both the teams will work on process developm current quarter, you are seeing a significant lower number for U ch generally captures R&D. So hence, that is why I wanted to h kind of savings that we are seeing, whether it is from the reduce side or it is something else? of base is almost around 3% overall, the 3% to 4%, 3%, 3.5% w verall, R&D spend is also around 3% of the turnover for the co together, consolidated number. So more or less, it will remain. missioned, which may happen during the, I think, in the en r. Thereafter, once we start producing the batches and then cli financial year, the overall R&D cost may go up to around 4.5% stion is from the line of Arun from FPL. e hearing me well? n. Proceed with your question. anted just a few short questions and probably short answers as w can you do sort of a ballpark figure as to how do we compa ational? Because the revenue split as almost 50-50. Regarding ge of domestic PAT and what is the percentage of international you look at -- we don't divide that way, but we monitor the ove f you look at gross margins of -- we had better gross margins India market. We have -- the next business line is from -- gross m s, India formulation business. the business which we do in Europe, Australia, New Zealand a after, I think South Africa are lower and U.K. also, gross margi the API. So overall, we have highest gross margin or ROW br c formulation. And we have good overall margins in Generics al g the domestic formulations, in fact, I was referring to only then your 52% comes from anti-inflammatories or NSAIDs, wh you think that there is overall dependence on one product? nning to also develop some products which could probably give

ess with Unichem, that's completely market and IPCA some -- Unichem of our API basket, ment. Unichem and other have some clarity. ed R&D spend on will continue to be ompany, IPCA and Once our biotech nd of the current inical work -- and , 4.25% here. well. See, the PAT are with domestic the PAT, what is l PAT, profit after erall gross margin s in ROW market margin-wise is the and Canada. Gross ins are lower. And anded. Next is we lso. the last quarter's hich is presumably Or is it -- is the a balance?

Let's say, pa management. osteoarthritis. have disease-m They are mo rheumatoid ar every produc management where we hav

As far as you brand is there there, which i brand name o significant ma only product i

Just one more started churni have approva Have these m maybe in the Some of those

Okay. Yes. Etodolac is IP be, I think we I just have 2 launch almost therapies are w flavor on the not that, the opportunity an Yes, as Mr. Ja has landed i consolidation gestation peri marketed. So in the U.S. ma

Nov Page 9 of 17 ain management constitute of -- it's not NSAID only, it's So pain management has 2 segments. One is rheumat . And rheumatoid arthritis consists of a large number of produc modifying agents that are marketed. ore chronic than even cardiovasculars, but they are classifie rthritis, we have very strong leadership. We have more than 60% ct we market, we have market leadership. So that is also c group. So it's not overdependent. Every product has leadership ve a good number of products marketing for rheumatoid arthritis ur osteoarthritis and those segments are concerned, yes, Zerodo e. And -- but apart from that also, we have a good number of is like a brand which is for etodolac and other drugs and some al of Pacimol and there are other brands are there. So -- and arket share. So it's not only one product which has confronted. in pain management. So, it's completely -- risk is divided here. e question if you can allow me. Have the revenues of the value ing? Does it come into the IPCA or it -- does it go to the Unic als of lamotrigine, etodolac, alendronate, risperidone and levo molecules started -- generics started yielding revenue? Or will near future? e molecules, Unichem is already marketing in U.S.

PCA products and that will be launched, I think maybe end of th e always shipped 3 products and another 3 are in pipeline. So las stion is from the line of Nirali Shah from Ashoka Stock Broking quick questions. First one is that on the launches. So we have t around 6 -- 5 to 6 products in FY '25. So if any color on the we trying to target or geographies are we trying to target? If you how it will contribute our top line, any numbers, any word abou market size of these products. So anything meaningful -- o nd data on this would be helpful. ain has already explained, 3 products, we have already shipped in U.S. So whatever primary sales we have done, it got because that product is not moved to the market. So there iod between the time we shipped to U.S. and those produc by the end of the current financial year, we should be launching arket. That is what is our target. And whenever we were there in

completely pain toid arthritis and cts. And there, we ed as acute. And % market share. In clubbed with pain p in your segment s. l is -- the flagship f other brands are ll marketing in the they also have a Zerodol is not the e to the exclusivity hem? Because we ocetirizine and all. it come -- reflect he year. So it may st will be etodolac. g. e been planning to ese products, what u could give some ut number? And if or any meaningful to Unichem and it t knocked off in will be always a cts started getting g about 6 products n these products in

the earlier tim some time, bu So what kind For example, anywhere betw Okay. That is 13 to 15 produ We will be s Okay. And... Unichem itsel current financ perspective? W basically, my Practically, IP IPCA product one more opp where earlier Zealand, Can see a very goo Understood. J facing any dis Nothing as su non-availabili the business h issues. There On this U.S. b by Unichem. profitability g out for us whe Kunal, if you line, correct?

Nov Page 10 of 17 me, we used to have a very good market share. But gaining mark ut we are very confident these products will do well, as it was ea of market share are we targeting? in U.S., maybe 10 years back, in most of these products, my m ween, say, 20% and in one product it was 80%. s helpful. And for example, from a 2 years perspective, we plan ucts, so how are we planning now about that? shipping ship 6 products to Unichem US. Maybe identical nu r. lf also will be launching 5 to 6 of their new molecules in the U cial year.

And my next question is what could be possible growth driv Which geography do we see to be contributing the highest and question is what could be our possible growth drivers in terms o PCA sales in U.S. today is currently 0. So you will see a ver ts being sold in the U.S. market going forward in the next 3 to 5 portunity will come. We will be taking Unichem products in they were not marketing, like ROW market, whole of Europ nada, So Unichem will also benefit out of that. So as an entity od growth going forward in the generic formulation business.

Just a last one, if I can squeeze in. On the supply chain issue sruptions that persisted in Australia and New Zealand? uch. No issues. Problem was there in the second half of the l ity of one material, which we already bought in the current fi has already started. So as we speak, there is no problem as far a is no issue. business arrangement that the U.S. business or the IPCA U.S. pr Will there be any transfer pricing be there where IPCA will given our stake in Unichem is around 70%. So how the econom en we sell our product through Unichem? recollect, whenever we were earlier there in the U.S. market, i Our products were marketed by other marketing partners o

ket share will take arlier doing. market shares were n to launch around umber in the next U.S. market in the vers from a 3-year followed by -- so of geography? ry good growth in 5 years. Similarly, all other markets pe, Australia, New IPCA Group will es. So are we still ast financial year, inancial year. And as material-related roduct will be sold account for some mics basically work it was only similar n a profit-sharing

arrangement. Unichem US. arrangement a will be some b Sure, sir. Un guidance of ar it? Yes, for the s second half, th Sir, for generi I understand remaining as I'm talking he Correct. So p business is tha Yes, yes, that Okay, okay, o India business in terms of sa We currently earlier, all the There is no i years. 2 to 3 years. Some division per our plan, e Okay. Got it. And, Kunal, i 4.36 lakhs in productivity i

Nov Page 11 of 17 So similar way, Unichem operation will be done. So we will se . There will be a margin in our sales. And US level, there will also, both. And most of these products are also backed by my o benefit out of API manufacturing also. nderstood. And on the generic business revenue, Jain sir told round 12%. Is that for the remaining part of the year? How shou second half of the current financial year. But overall, including he generic business should grow anywhere between 10% to 12% ic business, first half is only 2% growth, right? So then... because the shipment of IPCA did to Unichem US. So be a stock in Unichem on hand, it has got knocked off in the cons ere consolidated business, not stand-alone. probably INR30 crores -- or INR60 crores additional, and the at the way to understand? You would have signed maybe 1 quar is right, yes. okay. And sir, just one on the India business. What's the current s. And after addition, how is the productivity coming along for ales force? have about 7,000 medical reps in the field. And whatever guida e additional people are contributing in the same way what we issue absolutely. So they will become productive division-wis ns, productivity will be faster than the other divisions like card everything is moving. There is no issue. if you look at around 4.62 lakh for the first half of the current the last financial year same. So overall, there is a good impro n spite of addition of the people. stion is from the line of Zain from Dolat Capital. o ask a question against institutional business, can you repeat th FY '25?

ell our products to l be profit sharing own API, so there d that the growth uld we think about g the first half and %. ecause it was still solidated business. en there is a base rter inventory. t sales force in the the India business ance we had given e initially thought. se between 2 to 3 diac and all. So as year compared to ovement in overall he guidance for the

Which one? I

Am I audible Yes, you are a

So I was askin See, we have formulations. crores going f

Okay. And sir So whatever g we stand by th The next que Services. Sir, just with clarification, s higher than do Yes, yes. Eve Okay. Sir, sec Unichem prod in the produc 2013, '14, wh ones which w We don't see a So price decli Better than wh Interesting. I of reduced the In these prod prices increas what it was 10 Got you. So c - specifically share.

Nov Page 12 of 17 think you're not -- you're voice is breaking. Hello? now? audible now. Yes. ng, sir, about institutional business guidance for FY '25. e earlier also explained this institutional business consists on So this business will fluctuate anywhere between INR300 forward. I'm talking annual business. r, for India business guidance for '25? guidance we gave in the beginning of the year, anywhere betw hat. There is no problem. estion is from the line of Tushar Manudhane from Motilal h the earlier comment of the pecking order of the gross m so even at the EBITDA margin level, would be ROW-branded omestic formulation? en at EBITDA level. condly, with respect to relaunches of the products from IPCA' ducts basically, so it seems it's almost about now 8, 9 years. So cts which we are supposed to launch, like compared to what hat kind of price decline would have happened in those product we are going to relaunch? any price decline in them. ine there, there is no price difference. hat it was when we were there in the market 10 years back. mean, was it because that people have -- I mean, the companie e competition? Or if you could throw some light? ducts, we were having a very big market share. The moment sed. They have moderated, of course, subsequently. But still it 0 years back. considering these launches and subsequently in FY '26. So speci IPCA ex Unichem, what kind of U.S. sales one can expect in F

nly of antimalarial crores to INR400 ween 11% to 12%, l Oswal Financial margin. So just a generics would be 's plant, excluding o the price erosion we were there in ts, specifically the s have exited, sort we went out, the is now better than ifically Unichem - FY '26, if you can

It is too earl But whatever the U.S. in the And sir, lastly in the base of enough numb will be really I agree, but e what we see, how much m financial yea combination a That is why, w the fourth qua business is co 15%. That is w Even sir -- ev U.S. product strong for sec There are cha tender produc If the situatio year, second h difficult.

In fact, I was is the key. Co Yes, yes. Man -- by US FDA

Nov Page 13 of 17 ly to give the combined sales of IPCA plus Unichem as a g r. As we progress, maybe in the subsequent con call, we will g r we said in the beginning of the year, our plan of launching 6 e current financial year, that is progressing as we anticipated. y, on generics exports business, again. Like the first half numbe f second half FY '24 is also low. So that way then, will -- 12% w ber because even if I go by the run rate of what we have done strong in second half FY '23. everything ultimately depends on what kind of market. See, t the market share improvement will be gradual. So it is very dif market share we will get in the immediate -- in the second h ar for the products which are already launched. So all and question marks are already there. we will do fair guidance in the latter half of the current financ arter con call, what we are expecting in the next financial year oncerned. Current year, our generic business should be anywher what is the guidance. ven if you go by the generics exports for the current quarter ru launches will be additional over and above this, still the nu cond half of FY '22. allenges. As Mr. Jain has already said in the South Africa, whe cts and in the U.K. market. Considering all that, we are giving a on improves, we may do better than what we are committing. B half, there was very good business from South Africa market. w stion is from the line of Arun from FPL. g to understand the protocol, see, if a product that is approved b for IPCA, still, it can be better for marketing and distribution is it being done... . Earlier also, whatever products which were approved in our eted by other marketing partners. Every company does that, and arket. thinking that products -- so that means only the manufacturing orrect? nufacturing has to be from the site from where the product has g A. That is the only requirement. Marketing can be done by any o

group in the next give the guidance. to 7 molecules in ers look lower. But will be still a good in 2Q, the growth the U.S. business, fficult to comment half of the current that permutation ial year, maybe in as far as the U.S. re between 12% to un rate when your umbers look quite ere we lost certain a muted guidance. Because in the last which looks today by the FDA in the by Unichem. Is it r name, they were d it is the practice g is the one, which got approval in the other company.

As far as IP approvals, cor Formulation f

Ratlam, okay. Purely for do Europe, Austr

And we are sa Yes, yes. We Sir, just one revenue, whi subsidiary, wh Was, but ulti subsidiary. Sir, but then l are guiding fo That 2% grow everybody wi some sales fro to reach the U better let us g Okay. So sir, helps us unde for us, right? See, Kunal, w last financial apple. Becaus say, from Sep few days. Wh apple-to-apple consolidated g In our consoli Yes.

Nov Page 14 of 17 PCA is concerned, we have only Silvassa and Indore, whic rrect? The other... facilities, Silvassa and Indore. And API facility, Ratlam. . Is there any moves to make Kandla, Dehradun, Sikkim and all? omestic market. From Kandla, we also cater to all other marke ralia and all, we're catering from Kandla. It is a better FM facilit atisfying all the observations of US FDA, correct? have nothing outstanding as far as US FDA matter is concerned clarification. You said that the mix business guidance would ch we have supplied. But then doesn't that U.S. revenue w hich is Unichem? imately, it will get consolidated in my account because Uni like-to-like there is a confusion, right? The generic business has or 12%, and then we might end up our doing double counting. wth was stand-alone IPCA, and guidance is for consolidated bus ill see consolidated business. For example, stand-alone busin om IPCA through Unichem, which is booked in my books. But U.S. and it has not gone to customer. In the consolidated, it i is more important than stand-alone. So as far as generic busin go by consolidated guidelines. , would you -- at some point, will you change our segment re erstand the businesses better? Because I think Europe is also now what has happened, actually, the issue is confusion. We took ov year in the month of August. Anything we talk today is not com se last year, consolidation of Unichem started in our books only ptember. So last year, consolidation of Unichem was there only hereas currently, it is there for all 6 months. So in the next f e comparison will become clearer, and we will be giving guid guidelines as far as the generic business is concerned. idated top line growth guidance for this year is around 9%. Is th

ch have the U.S. ? ets other than U.S. ty. d. d include our U.S. will go through a ichem also is my grown at 2%. We siness. Ultimately, ness, I have done t that material just s knocked off. So ness is concerned, eporting so that it w sizable business er Unichem in the mparable apple-to- y from the month, for 1 month and a financial year, the dance market-wise at correct?

Yes. All the busine Correct. Righ

No, see, sequ in the ForEx expenses goin will play out a You can take quarter figure year. Current exceptional ex

Okay. All righ the European No, nothing, n around 11% a

Nov Page 15 of 17 ess included. ht. stion is from the line of Harshit Dhoot from Dymon Asia. estion is on the order expenses. We have the tender busines ectly playing to EBITDA. Our domestic productivity has incr is a bit higher to see the way the business is getting ramped o he 27% -- I'm talking about a consol level, is 27% other expen d?

I said consolidated numbers are not strictly comparable b , Unichem numbers were there only for 1 month and few days. . So that confusion will be there in the current financial yea r, everything will be comparable apple to in. For example, in th hs, my other expenses also include entire 6-month expenses of U nancial year, 6 months, it was only for one month and a few d

ential basis also, right, INR574 crores to INR637 crores. INR6 losses. Sir, I just want to understand the generics for the SG& ng forward. So I just wanted to understand how this operating as we are focusing a lot on this. whatever run rate of other expenses in the consolidated first q es are there. More or less, it will continue. Don't see anything a financial year, first quarter, second quarter, other expenses are xpenses in that, that will continue. stion is from the line of Kunal Randeria from Axis Capital. ber IQVIA data for India showed that the growth has slowed do ternal number also shows a slowdown? growing as whatever we have projected and all of the year, o ween 11% to 12%. ht. And just to kind of reconfirm, it's a broad-based growth, rig franchise? nothing. When they were showing 15%, 16%, 20% growth als and 12%. stion is from the line of Shiva from Purnartha Investment Adviso

s, in which gross reased a lot. Then out. So is it fair to nses will continue because last year This year, it is for ar. From the next e current financial Unichem. Whereas days. So you can't 37 crores adjusted &A for these other g leverage benefit quarter and second about last financial e all -- there is no own to around 6%. ur growth will be ght, and not just at o, we are growing ors.

Okay. So it w Yes, yes, yes.

Okay, okay. G somewhere ar and you are INR80 crores some light wh your subsidiar Subsidiaries, line growth nutraceutical business, and certain issue sustain their o

Only subsidia which is out manufacturing are our operat in the U.K. m which are into

For the full ye Yes, IPCA sta Thank you v conference ov

Nov Page 16 of 17 stion is with respect to the U.S. thing. Earlier, when we were in r total revenue in U.S. at that time? And if you could split betw and API? And what was the profitability at that time?

S. business at that time was around INR400 crores, includin 60 crores API business. And in both formulation and API busin t, we had a very good EBITDA margin. was comparable to the ROE as well, the rest of the market was in

Great. And the second is with respect to your other businesses. O round INR80 crores. Obviously, you said last time that you wer seeing some progress. Over the last few quarters, it's been I s subsidiaries revenue and earlier, it was slightly higher. If you hat is -- how is the progress over there? And going ahead, ho ries revenue? This is excluding Unichem. one is Trophic Wellness, which is doing reasonably well arou and maybe 15%, 20% bottom line growth. Trophic Wellne business. Then other subsidiary is Onyx Scientific, which it is based out of U.K. There also the business is steady. This about discretionary spending coming down in the market. B operation. ary which is now not delivering, which going forward should do of U.S. They are also partly into CRAMS and partly into g for the U.S. and other markets, where certain projects are g ting subsidiaries. Apart from that, we recently started marketing market through our own subsidiary, IPCA U.K. So these are m o business. stion is from the line of Zain from Dolat Capital. question from my side. Sir, generic business guidance, excludin nichem, So it will be around maybe 8% or so. ear? and-alone. very much. As there are no further questions, I would now ver to the management for closing comments.

n 2013, 2014, '15. ween what was the ng about INR150 ness, including the n the top. Obviously, it's like re working on that INR90 crores and u could just throw ow do you look at und 10%, 12% top ess which is into is into CRAMS year, they have a But still, they will o better is, Pisgah, o small-scale API oing off. So these g our own products major subsidiaries, ng Unichem is, for like to hand the

No, nothing. N con call. And Thank you all Sure, sir. Tha this conferenc Thank you all

Nov Page 17 of 17 Nothing from our side. If there are no further questions, I think d thanks all the participants for attending this con call organized l. ank you so much. On behalf of DAM Capital Advisors Limite ce. Thank you for joining us, and you may now disconnect your l.

k we can close this d by DAM Capital. ed, that concludes lines.