IPCA Laboratories Ltd

Ladies and g Earnings Con participant lin questions afte call, please si that this confe I now hand th

Fe Page 2 of 15 gentlemen, good day, and welcome to the IPCA Laboratorie nference Call hosted by DAM Capital Advisors Limited. A nes will be in the listen-only mode and there will be an opportun er the presentation concludes. Should you need assistance duri ignal an operator by pressing star and zero on your touchtone p erence is being recorded. he conference over to Mr. Nitin Agarwal. Thank you, and over to ar. Good afternoon, everyone, and very warm welcome to IPCA arnings call, hosted by DAM Capital Advisors Private Limited. resenting IPCA Management, Mr. A.K. Jain, Joint Managing th, Company's Corporate Counsel. ver the call to Mr. Jain to make open comments, and then we'll ease go ahead, sir. n, and DAM Capital Advisors for organizing this call. Good and thanks for taking out time and joining us for Q3 FY '2 and discussions and answer given, may include forward-looking nt business expectation that must be viewed in conjunction al business faces. Our actual future financial performance may and perceived. You may use your own judgment on the informa c formulation business has delivered 11% growth for the qu e 16th Indian pharma company as late December '23. Market nd chronic therapies are achieved for this quarter. The chroni 11%. IPCA has grown by almost around 15.9%. And on Acute 9.1% and IPCA has achieved around almost around 11.3%. Thi ber 2023. ge jump over corresponding period, IPCA is 13th in Acute segm s rank in the Chronic segment. IPCA's market share has improv 3 as against 1.89% in the December '22. So from 1.89%, it ha ormulation business has given a growth of around 8% for the qua und INR433 crores. formulation business in ROW declined from INR128 crores t y due to certain shipment could not go to the CIS market. My ause there are issues and licenses are getting delayed for a long p mport licenses in that country, shipment cannot go. And certain ed for two reasons. One is Red Sea reason and another, some ki so. So because of that, the branded business in this quarter is d

s Q3 and FY '24 As a reminder, all nity for you to ask ing the conference hone. Please, note o you, sir. A Lab's Q3 FY '24 On the call today, Director; and Mr open the floor for d afternoon to all 24 Earnings Call. g statements based with the risk that y differ from what ation given during uarter, and we are beating growth in ic market, market e segment, market is is as per IQVIA ment and IPCA has ved to 1.9% MAT as gone to 1.95%. arter from INR400 to INR105 crores. yanmar business is period of time. n business of West ind of slowness in down. Institutional

antimalarial b the same quar Export generi INR189 cror formulation b around INR28 pricings are n On margin fro to around 18. year. The mat current first 9 So overall, m shipping costs '22 last finan procurement. Consolidated by 1.12% du material costs for the quarter Having given Thank you ve is from the lin So the first o updated thoug over the next synergies? An So we are wo improvement at the Unichem up their produ is almost gro 43.6%. So the And as far as there are time involved. So t on. It will tak have achieved

m INR83 crores in around 33% from ric -- the export INR329 crores to in certain API, but d to 2.78% from -- d of last financial d also for -- in the und 32.21%. Both rices in December n majority of our come has gone up 2%. Consolidated 36.34% to 33.95% if any. The first question m -- what are your ntitative synergies to generate those y? ket extensions, the ns and productivity . And also to scale year and the first -- grown by around e is for everything so many things are verything is going w for the Q3. They %.

And the comp quarter also, a are on right tr have discusse Sir, any quan next 2 years w It all depends where the reg need to be ag So giving qua talked earlier margin. That' looking into a Sure, sir. And year-on-year. let's say, next Generic busin similar kind o business may businesses in expecting alm the South Afr grown by alm Europe busin quarters in th INR371 crore launched in U Only concern shipment and to come from products with should be gro Sure, sir. An incremental u could be the you looking a end of FY '25

Fe Page 4 of 15 pany, which was incurring losses has now shown some kind of P around -- almost around INR16 crores before the exceptional i rack, and we are confident that because the company will make p ed earlier. ntitative number as to where their margins -- annual margins co with all that we have in place now the entire plan that we have in s on how the journey is actually the -- taken up because there gulatory approvals and all are required. Even if processes are c gain refiled, then after approval only they can be, let's say, com things are there. arter-wise numbers and all may not be right now feasible. But y that INR2,000 crores turnover and INR300 crores kind of 15% 's very much achievable. We are very confident, every day af and seeing the progress, here we feel that we are on the right pat d the second one on the generic business, which has seen a lo Is there any one-off kind of component? How should we look quarter and for the next year? ness, if you look at in last 3 quarters on a continuous basis, of growth. And in fact, at the beginning of the year, we were l not grow that much because of -- we were looking -- we have l South Africa, but we are -- in South Africa, also we are grow most around INR40 crores, INR50 crores kind of losses, but we rica business is also moving up in current year also. I think in fir most around 12%. So there are no decline. ness is also going on very well. The Europe has seen good gro he current year. And overall, it's grown from INR240 crores es, almost around 54% growth. There are a lot of products wh UK. So that business will continue to have good growth. n is little bit on this Red Sea level and certain customers postpon all those kind of things, in the time frame is going to be norma m first -- maybe in the first quarter of the next financial year -- h shipment and marketing will start. So overall generic busin owing well for us in time to come. nd one more, with your permission. On the US products, update as to where are we, for the sake that we might do some s potential upside on that shipping that will start in quarter 1? A at the number of products that will start shipping, starting from q 5?

PBT in the current income. Also they profitable -- as we ould end up in the n place? e are many things changed, processes mmercialize and all yes, what we have % kind of EBITDA fter -- then we are th here. ot of growth 33% k at that business, that has done the looking at generic lost certain kind of wing and we were e are looking that, rst 9 months, it has owth in last first 3 to almost around hich are yet to be ning some kind of alized. And in time some kind of US ness should -- say can you provide shipping, but what And then how are quarter 1 FY '25 to

I think overal work needs to of years 2014 some process approvals are But I think, o be launched i process upgra time. So -- ov of number. So that's how and all. So it period of time Sir, my first q has impacted business to sa Overall, see o kind of growt Okay. But som then maybe it Yes. Yes. But 10%? Okay. commentary y year-on-year. should we lo perspective? That's -- for f of prevailing even if it's a profitability a So you don't e Only certain attacks has co days, we have

Fe Page 5 of 15 ll, what we have worked out that there are a lot of products whe o be done with reference to -- because in US, we are coming af 4 to now. So some kind of processes, the change of API and a es where the post approval are required, which has 6 months' ti required. So all those kind of things are there. overall, looking at the -- we feel that almost around 8 products in the next 12 months. That's what is visible. And thereafter, th adations or somewhere, the site changes are there and all thos ver a period of 2 years, I think it's possible to launch around 16 -- its a journey now. There's a lot of revalidations and all those will take some time. It's not that everything can be done toget e -- say, in current year, 7 to 8 products definitely can be launche stion is from the line of Damayanti Kerai from HSBC. question is on branded market. So you obviously mentioned so d quarter during -- performance in the quarter. So how shoul ay from next 2 to 3 quarters perspective? our expectation from this business from next financial year cou th. And current year, it may grow around by 8%, yes. me of the challenges which you mentioned, that remains in nea t will take some time for those 2 sectors. t in spite of those difficulties, the business could grow around 10 And sir, you mentioned, say, like Red Sea situation, etceter you also mentioned that freight costs are down -- freight cost But I think what we are hearing that logistic costs are going up ook at your operating cost especially freight, et cera, again, freight cost comment I have given only with reference to that la rates were there compared to that the rates are significantly l little bit the logistic cost goes high, it may not have much of and all. expect much impact from these higher freight costs, etcetera. Sh European customers are postponing the shipments. But now ome down and things may normalize again. That's what -- y e not heard any kind of those attacks.

ere -- some kind of fter a long number all those, there are ime and some pre- or 9 products can he -- whatever the se things will take 6, 17 product kind e need to be taken ther. So it's over a ed. Yes. ome regions which d we look at this uld be around 10% ar term, right? And 0%. a. But one of the ts have moderated p, etcetera. So how from a near-term ast year, what kind lower. And that -- impact on overall hould we... w let's say, Houthi es. Yes. Last few

Okay, sir. An expansion, et plants will sta Dewas almos already filed take around 6 shipments -- y Okay. And Na Nagpur -- con the -- now co that's for capt only some kin Okay. And sir you're expecti like a good etcetera, or yo say, next 3 ye We have alm product appro Yes. So it's ba more number Yes. Sir, my adjusting for Unichem in t number of U meaningful co So what is th because your margin sequen Let's say, ove improved bec kind of impro And prices ar there are not m added busine overall.

Fe Page 6 of 15 nd my last question is, can you provide an update on some tcetera, which you're doing at Dewas, Nagpur, etcetera? And art contributing to your numbers? t around 7 to 8 product commercialization work is going on. S with European authorities. One product approval has recently 6 months' time for at least 5, 6 product to get approved. So ther your production -- regular shipments can start from Dewas plant agpur? ncerning Nagpur we have not done anything much on the site. onsent to operate. So first one, intermediate, the planning is go tive consumption. So nothing we laid on as far as the top line nd of reduction in the cost and all will happen. Yes. r, a clarification on the US business commentary which you alr ing that 16 to 17 products can be launched in next 2 years. So footing in the US business given like your advantage on th ou need to add on like more products to gradually come up in ears? most around basket of around 40 products. So we are expecting oval to come. So this is from the current list I'm talking which asically the more number of product approvals will come and w of launches will also happen. stion is from the line of Surya Patra from PhillipCapital. first question is on the margin profile x of Unichem for this qu the EBITDA margin what we had reported for or what we the previous quarter that was part of our number. And this Unichem, it looks like that the margin has -- for IPCA ha orrection sequentially from almost like 300 basis point kind of im his leading to? Is it the operating negative leverage that you'r export is seeing some kind of -- so if you can clarify what is ntially weak for our base business. erall, if you look at the -- as I talked earlier, that material cost cause more value additions are there. And that improvement is a ovement is there on material cost. re more or less 2.78% improvement. So -- and prices are also n much of fluctuations on my procurement prices and all. And ov esses are happening on formulation side, and that's giving th

of the new plant d how soon these Some products are y come. So it may reafter, the -- your t. We have just got oing on there, but e is concerned, it's ready provided. So that will give you he cost expenses, the US market in g good number of h is approved list. with that, even the uarter. If I see that had indicated for quarter's reported s seen a kind of mpact. re seeing out here that is driving the t to sales ratio has almost about 2.6% now stabilized. So verall, more value- he better margins

And as far a around 7% to personnel cos and other exp operating inco there is good Y-o-Y that is about 300 bas Unichem num sir? The margin im right now, say should be con So at that lev US business m margin over definitely mov Okay. Okay. the margin pe or 15% aroun it fair to belie of corrective m any of the ben Let's say, mar are growing b grown by aro business, whe have suffered that is impact So -- but -- a also done we overall top lin Now as far a 8.8%. So they because there think Unichem residual share INR68 crores

Fe Page 7 of 15 s the personnel cost is concerned, that's growing around 12% o 8% kind of normal increments and since we added people in st is written on higher side. But our -- overall, if you look at yo penses side, there are hardly any increase. So compared to -- w ome to other expenses, manufacturing -- other expenses, that - amount of reductions is there because overall, that cost has not m s correct, sir, what you said. I'm just asking that sequentially sis point kind of impact, IPCA's base business would have seen mbers. So what -- sequentially, what would be driving or damp mprovement will continue as -- let's say, that with the overall g y, in the current quarter growth was low. And from next year on ntinuously growing by around 10% to 12% kind of growth. vel, the margin level will further improve by around 1.5%. And margins will -- because capacity utilizations will add. So that a and above this normal margin. So we feel that overall EBIT ve by around 2% point plus kind of things. Yes, in next financia Sir, with your permission, can I just ask about the Unichem a erformance for this quarter, what we see sir, here in Unichem is nd. So I think it is already reached to your guided level almost n eve that the margin expansion, what you have been targeting w measures. The full benefit of that flown in to Unichem and whe nefit of integration for IPCA's base business? rgin there are driven by their overall increase in overall revenu by almost around 40% plus in the current year. In this quarte ound 43%. And improvements in business is there across, wh ether there its a Brazilian business, whether it is European bus d on ROW market business, again, because Myanmar they had ed and little of the Russia business is impacted. nd even the CRAMS business is also -- the contract manufactu ell. So overall -- let's say, the overall productivity there are im ne growth has been good. as margins are concerned in Q3, I think the EBITDA margin y were around 3%, 4% from there. They have come to 8.8%. It e is some kind of exceptional income is there. So that you need m in P&L account that has declared separately because that es, which they had of Optimus which they have disposed of a kind of surplus has come. So that has been shown as exceptiona

%, which includes n the field. So the our manufacturing we have the overall -- there are also -- moved up. it looks like near , if I adjust for the pening the margin, growth picking up, nwards, I think we d when we add the lso will add to the TDA margins will al year. also here. Because s around 15%-plus earer to that. So is ith the initial kind ether we have seen ue. Let's say, they er also, they have hether it's our US siness, except they good business. So uring business has mproving and your n has been around 's not around 15% d to exclude. So I is on sale of this and almost around al income.

So overall ma looking in Un to be filed w approval. After regulato after you put revised proce over a period So I would sa margin impro EBITDA was last financial y From there, t what we are s cost side, imp some margin. Okay. Sure, s And that journ Sure, sir. My supply comm that the activa So this -- the that we are sa Sir, we have updated dossi 7 products can think 2 or 3 p first quarter o quarter of cur financial year And the other there are pos processes nee almost around is -- most of approvals can launched over

Fe Page 8 of 15 argin has not reached to what level and what kind of improvem nichem, they will take time because processes when they are co with the regulator, then -- after that, based on that, you need ory approval, you take the -- again, the formulation basis put the stability, then again, file with regulator, take their approva esses become effective in your formulation. So it's a journey, it d of 3 to 6 months time. It take a long time. So maybe 1 year, things. ay that those kind of improvements will come in time to come. ovements are because in Q3 '22, '23 they had negative margins s that kind of negative margin. So they were in losses almost I t year, they had almost around INR60 crores kind of losses was th they have come to the profit and margins have started improv seeing is only the improvement in operations, little bit on overh provement in productivity side and improvement in business. Th Yes. ir. Sir, My next question... ney will continue -- that journey will continue. next question is on the US business front. So you mentioned mencement to US can start-- starting first quarter for FY '25. But ation of the dossiers could take a longer time, even the process procedural aspect itself will take around 12 month or so. So th aying the few of the... been working almost around 7 products, we need not to do m iers are there. So these 7 products can -- see, currently, I have 2 n go. So that -- in a closed manner these products will be launch products -- production is already going on. So there would be of the current year. And the launches -- market launch will h rrent year. The shipment from here may take early part of the fi r. r products are -- there are somewhere there are site changes are st approval are there, somewhere pre-approvals are there. Som ed to be incorporated. And all those works are there. Plus, w d a good number of more than 20 more filings which are there, f the -- lot of review has already happened and -- in a phas n come. So based on that, I'm telling that around 15 to 17 r a period of 2 years' time.

ment, which we are orrected, they need to do the -- take them on stability al. And then those t cannot happen in , 1.5 years and all Currently, sir, the of around 14.1%. think third quarter here. ving. So we are -- head side, little on hat has resulted in that some sort of t knowing the fact has to be updated. hen on what basis much. So that's our 1 approval. Out of hed. But initially, I somewhere in the happen in the first irst quarter of next there, somewhere mewhere the new we expect we have where everything sed manner, those 7 products can be

Okay. Okay. performance digit growth b Sir, knowing Enelium-base trend, what w for next year a Let's say, Ele of price rise w because of re there is hardl hardly any. M So -- and wha low. So it's a financial year So overall, w possible to inc

Fe Page 9 of 15 Just last one question, sir, from my side. So far as the dom going ahead is concerned, let's say, FY '25. Obviously, we ha better than the industry growth, IPM growth in the current financ the fact that around slightly more than 20% of our portfolio po ed and the limited scope of a price taking price rise there and th we are seeing currently. So is it possible to continue double-dig as well? nium did not impact much in current year also because there w was there on Elenium, but similar kind of reduction was there eadjustment of prices, and reappraising and all. So on Elenium ly any advantage or even if there is advantage, it's only 1%, Much of the advantage was not there. at we have seen in current year is that your acute portfolio grow a very exceptional year. So -- and acute side, the growth shoul r. And on the chronic side, market has started reporting double- we see that from 11% to 12% growth -- what current level we crease the overall growth to around 13%, 14% in domestic mark stion is from the line of Ajay from [Wealthify 0:29:01]. sir, I have a question about our group companies. Since no e doing any con calls or giving any guidance. And if you say rom last few quarters are almost stagnant and also into losses. update around our subsidiary performance like of Krebs and othing to do with IPCA. IPCA doesn't have any kind of holding company. Then as far as Lyka is concerned, their business grow all, they would be doing better, I think, overall. Their plant is u ause of upgradations and all. So that is also getting complet art is going to complete in first quarter of the current yea nd filings of dossiers and all will happen in the developed mark ing very well. l those kind of things, they have performed reasonably well. A d 100 people in current year to do the direct marketing of their -- that business has also now -- they're giving good results to them more number of people in next financial year. So overall, we s far as Lyka is concerned. ichem is concerned from losses, they have started now perform hat -- it's possible to achieve almost around INR2,000 crores tu

mestic formulation ave seen a double- cial year so far. ossibility is part of he volume growth git kind of growth was a good amount few months back m product, in fact, 2%. So there was wth in the market is ld pick up in next digit growth now. have, it should be ket. one of our group y the top lines and So can you please Lyka and Makers g in Makers. It's an wth is good. They under shut down a ted -- your whole ar and thereafter, ket and all. So that And they also had - injectables in the m now. And in fact, are seeing a good ming, and we have urnover there. And

significant im companies. As far as Kre and some mor side are gettin So we are see those approva intermediate a So those issue Onyx is givin good busines overall. So the was set up fo Unichem will So Bayshore business and will there also associated sub Yes. Sir, on th some price pr our realization versus now, h As far as De Ratlam and R required for c newer kind of transfer from And there are have seen sig There are not levels, they ar Yes. Fair eno business. So p US business. engagements those engagem

Fe Page 10 of 15 mprovement in the EBITDA margin from current level. So th ebs is concerned, there are good improvement there. The losses re products validations and all are going on there. Some produc ng approved in our dossier. So once that happens, their volume eing good improvement in Krebs also. But it will take time. It's al comes, even though you have validated process, you can't and use those capacities and all. es are there. But overall, let's say, there are overall improvemen ng good returns, good profitability there. We are the -- Trophic W s on selling the neutraceuticals and their business is also in ere are -- except lets say, somewhere, I think the Bayshore whic or marketing of IPCA product. So now that setup is no longer l be doing the marketing because that's a much bigger setup. will, overall, maybe -- that business will get overall merge w also their team synchronizations and all that work is going on. o will come down. So overall, there are much of -- not much of bsidiary kind of business. stion is from the line of Ashish from JM Mutual Funds. his API thing, since you have the Dewas facility also coming, bu ressure on the APIs we have heard from some of the channel c n, like what products we might have selected for -- from Dewa how are the product prices behaved? was products are concerned, it's only the products are getting Ratlam, we are creating the surpluses capacity so that the pr captive consumption for our US business that can be accommod f products to be launched and newer products are maybe few.

Ratlam to Dewas and those kind of products are there. e -- the price stability is there on those kind of products, except gnificant kind of price reduction. But otherwise, the prices hav t much concern on as far as the prices of API is concerned curr re not going down. ough. Sir, secondly, on the US, since we are in the process prior to the 2013, '14 level, we used to do around $30 million to And there was this one product, Toprol, which is metopro like used to supply Toprol to AstraZeneca and some other play ments will restart or you feel you will have to make a fresh start

hese are the listed are reducing now cts on intermediate will also pick up. not -- till the time use those kind of nt in all operations. Wellness has done good profitability ch is a setup which r required because with the Unichem And certain costs concerns in that -- ut globally, there's hecks. In terms of as versus then and g transferred from roducts which are dated. So it's not a It's more of a site t sartans where we ve stabilized now. rently. From these of starting up the $40 million in the olol. So all those ers, I guess. So all ?

Let's say, tact there is no shi time-consumi update those k are there. So API busi consumptions products to D and API busi around 10% t Okay. Fair en putting our pr of things? Ha Unichem? If you look a because they improving fro So the operati growing by m improving in business impr And they hav products so th that, there cou As far as pro happening ev things. But yo you do a proc APIs or interm processes and And thereafte It's more for t It's a maybe have envisage have envisage Just lastly, sir Is that numbe

Fe Page 11 of 15 tically all those kind of businesses because -- has completely c ipment of API to any formulators for US in last 10 years. So we talk that wherever is possible to get those kind of business onc ing thing again because lot of places, our process has also chang kind of parties with revised sampling. And then the approvals a iness will be a little slower to start with for US But the s will come from Ratlam. So Ratlam capacity which is getting fr Dewas will be utilized for the purpose of our captive consumption ness, if you look at -- now from next financial year, we shoul o 12% year-on-year. nough. Sir, lastly, on this Unichem, so in terms of liking operat rocesses, going for the yield improvement. So where are we in t ave we achieved enough kind of success in what we were pla at their results of the third quarter and all, they have signif were in losses. And now they have come in overall and margin om minus 14% in Q3 last year, it is now 8.8% kind of margin. ions has started improving, their productivity have started comin more than 40% in current year. And that is also resulting -- b various markets like US, Brazil, Europe. everywhere, we are se rovements are there. ve Goa two their plants, the validation of processes are going hat they have much larger capacity, but the bigger basis they can uld be a further improvement in their overall operation. ocess changes and all those are -- it's a journey. It takes time. verywhere on market extension, process improvements and our pharma industry being regulated, everything need a regulato cess, again, go to regulators, file with them, wait for their approv mediates to the other formulators, all that. And then they need t d generate stability, file -- give those data to regulator. er, the fructification happen. Here, most of those improvement the captive consumption. So that journey will have to have, and 1-, 1.5-year journey. But I would say that, yes, the journey is ed. There could be some delay here and there, but journey is ed. r. So 2 years down the line, could this be a 15%, 20% EBITDA er achievable for Unichem?

ome -- US related e have restarted all ce again. But it's a ged. So we need to nd all those things API for captive reed by shifting of n more. And the -- ld be able to grow tional changes like the overall scheme anning to do with ficantly improved ns has also started ng. Their sales are usinesses are also eeing some kind of on for the bigger n produce. So with That's -- work is all those kind of ory approval. Once vals. Then give the to again do -- their ts are not for sale. d it will take time. s happening as we happening as we A margin business?

We have guid My first ques earlier, you sa what you're e are the guidan As Mr. Jain h the API busin growth has be So API, you directly... Right. And bo is what our g going forward business, Uni some kind of start, you only but now it is And going ah No, no. Lot o improved. Th benefit in US which, in the And few mor also have a ba products, may them. Okay. And wi They're only i Your generic No. My gene fact, in first 9 very well. So generic busine

Fe Page 12 of 15 ded for 15% kind of EBITDA margin. stion is from the line of Shiva from Purnartha Investment Adviso stion is with respect to the guidance. I mean if I see our inter aid it was -- you were expecting a 12% growth but now you ju xpecting in your Q3. Just wanted to understand for the differen nce? Are you holding in? Or is there any change? has said, generic business will continue to grow. There will be ness for the time being and to some extent, in the ROW brand een lower than what we gave projection in the beginning of the y are lowering and international branded you're lowering. The o oth these business should give reasonable growth in the next fi guidance is. So from this period on the API business should s d.

Helpful. And the other thing I just wanted to know, obvio ichem's also business is growing very strong. Just wanted -- if y what are the other reasons behind this sudden surge in deman y said that at the start of the year, the generic, you were expect upwards of 25%, 30%. So wanted to understand what changed head, is it a one-off? Or is it more structural? of operational changes are also made in the bargain. So their heir production capacity has also improved substantially, and th S business. And they are also commercializing few of the new past, they have received approval. re new products will also get commercialized in the next finan asket of products to be commercialized. So all that is giving be ybe because of shortage in the market also, some benefit wo ith respect to your generic, is it more -- because of any shortage into generic business. Nothing else. business also saw a very... eric business, what has happened? The UK business is growin 9 months, the growth has been about 100%. European generic outh Africa, we were looking for some degrowth, but that ha ess, we don't see any concern as far as growth is concerned.

ors. rnational business, ust said that 8% is nt subsectors, what some slowness in ded business. The year. others are sticking nancial year. That stabilize and grow ously, the generic you could just add nd? Because at the ting a single digit, d in this high end? r productivity has hat has given them w formulation for ncial year. So they enefit. And in few ould have come to s or is it... ng very nicely. In business has done as also grown. So

I just wanted runway of thi On a conserva for generic bu on. productivity. get -- update additions goin Overall, MR 7,000 medica That process force size. Okay. So last MR? Wait. Second this quarter, b what we expe in the domesti On per man s current year. medical profe basis. Did you Pardon. We d There were so be slightly on basis. So in th We have not s Sir, for the pr business. Tha will that be in

Fe Page 13 of 15 to know, like the next 1 year, you're looking at a very strong s? Or is it -- this year has been a one-off, etcetera? ative basis, we can guide anywhere. between 12% to 15% grow usiness. Over and above that, whatever business will come out Helpful. And just one small question. I wanted to unde So we've seen the last quarter that there was an improvement. S e the MR productivity? And what is the current strength and ng ahead? productivity is around 4,25,000 currently. We are almost arou al reps as of now. We will be adding certain number of peopl is going on. But additional will be not more than 5% increa t quarter, it was slightly higher, right? It was I think 4,60,000 d quarter is always more productive. Because of seasonality is because of season not being that conducive, sales are also a lit ected. If not nothing, nothing abnormal. Second quarter is alway ic branded business. side, I think we have added almost around INR20,000 produc And just there's some notification from the government wi essionals kind of antiviral or anything they should be slightly u feel anything on the ground or is it more just a statement from didn't make out what was your question actually. ome rules that the government officials have told the medical n a conservative basis in prescribing pain or anything with re hat... seen any impact, anything like that in the market place. No. stion is from the line of Rashmi Shetty from Dolat Capital. oducts, which you mentioned, 16 to 7 launches, which we will b at will be through Unichem. I mean, the sales will be the part of U ncluded in subsidiary or it will be part of generic business?

g growth, like the wth going forward of US will be add erstand your MR o if you could just d the plan for any nd infilled around le in current year. se in overall field 0 was -- 4,63,000, ssues and all. And ttle bit lower than ys the best quarter ctivity per man in ith respect to the on a conservative m the government. representatives to spect to the acute be doing in the US Unichem or -- and

Rashmi, earli marketing par Now what wi in my books ultimately wit they will do s Marketing. Un That is correc Okay. That is how your pai about the perf Overall, pain growth is a li wise on cardi growth is low ophthalmolog that's broadly performances And your pro Current year, Okay. At the consolidation acquisition? A Rashmi, it is acquisition co why that INR we purchase s time. Sir, just one U crores EBITD FY '26. And sir, with term, how sho perspective?

Fe Page 14 of 15 ier what was happening, I was manufacturing, and I was rtner, right? We had 2, 3 marketing partners in the US. So on pr ll happen, we will manufacture and sell to Unichem US. So sale also and in their books also. In any case, their books will th my books. So there is no change because manufacturing IPC elling and distribution there. nderstood. ct. Right. s one thing. And secondly, on the India business, if you can give in segment has performed during the quarter, even Zerodol, formance. portfolio in current year has grown by around 12%. This quar ittle lower at around 8% to 9% kind of thing. But overall, let's iovascular in current year, we have grown by around 13%. An w at around 3%, CMS around 20%, Derma on 19%, urolo gy around 17% kind of growth. And others maybe around 8% y the -- here numbers -- in various therapeutical perf .. duct Zerodol is still contributing significantly and it is growing Zerodol growth is around, say, around 8% to 9%. -- in the range of 8%, 9%. Understood. And one more question . How much would be the amortization that would be recog Annual amortization? s an investment. There is no amortization. Earlier, what w osts used to get capitalized. Now all acquisition cost gets debite R40 crores deficit has come in the second quarter. Otherwise, all share and give considerations. So there is nothing to be amortize stion is from the line of Mukherjee Saion from Nomura.

Unichem, your guidance of INR2,000 crores and a 15% EBITDA DA. What's the time line for that you're looking at? h the process changes and market extensions, which is probab ould we think about growth in margins for Unichem from a sli

selling it to my rofit sharing basis. es will get booked l get consolidated CA will do -- only e little bit color on if you can tell us rter, pain segment s say, therapeutic- d the antibacterial ogy around 24%, %, 9%. So overall, formance -- area double digit? n on this Unichem gnized due to this was happening, all ed to P&L. That is l is investment. So ed over a period of A margin, INR300 bly slightly longer ightly longer-term

Saion as far a will take time near future, w Okay. And si that you woul It is too early have cost com market share. And they are are confident do well in the Okay. And si assessment on It will be arou been little lo Otherwise, co As there are n over to the ma No, nothing. M is nothing furt Thank you. O Thank you for Thank you, ev

Fe Page 15 of 15 as this market expansion and change in sourcing, it's a regulator e. So the margin expansion will continue over a period of tim whatever we can do, that is what guidance we have given over ne ir, any assessment on the US revenues for the next 2 years wit ld be launching in the market? y to give any guidance. See, nobody is waiting for your produ mpetency, I will have to again relaunch product one by one There are only 3, 4 customers who matter in this business, you already sourcing those products from a third party. It will take s because of our processes in the API. And our cost competency e US market vis-a-vis our formulations going forward. ir, when you mentioned 13%, 14% kind of a growth in India, n how much is price and volume mix in this growth expectations und 4%, 5% price increase and the rest are all volume. This ye ower because of the seasonality and all, it is slightly below ompared to market, we continue to do well. There is no issue. no further questions from participants, I would now like to ha anagement for closing comments.

Most of the issues. We have already discussed. All questions ar ther to add. Thank you very much.

On behalf of DAM Capital Advisors Limited, that concludes r joining us. You may now disconnect your lines. veryone. Thank you. Bye.

ry business, and it me. But immediate ext 2 years. th 15, 17 products uct. Even though I and go on taking know very well. some time, but we y, we will certainly what's the -- your s? ar, the growth has w our expectation. and the conference e answered. There s this conference.