Hi, thank you for the opportunity. Sir, can you talk about the pricing arrangements of your take or pay GLP-1 contracts? What I mean is, from a pricing standpoint, are your contractual terms broadly similar across all clients for GLP-1?
So, sir, these contracts basically have an annual price revision built in?
Hi, thank you for the opportunity. Ankur, 1 clarification. Can you reconfirm the 25% growth guidance is a CAGR and not a guidance of 25% year -on-year growth in the 5th year, which would be, say, FY '29?
Understood. And the second clarification would be, when you say 80-20 split between API and formulations, do you also include the interunit sales within the API percentage of 80%?
Sir, first question, our year-on-year API sales growth has been relatively low for the past 3 quarters now. Specifically, for this quarter, the base was also favourable. So can you highlight the issues which impacted API sales in this quarter? And also, if you could talk a bit about the scale-up of the Limbasi facility? Is it going in line with your expectations?
My question was actually more on the year-on-year sales growth specific to the API segment. So I understand the point on the sequential drop, fourth quarter is usually high for us. But if you look at the first quarter FY '24 growth in the API segment, we were just at 5% and again, in this quarter, in first quarter FY '25, we are similarly at 5% growth. So just trying to understand from a year-on-year standpoint, given the fact that Limbasi should have ideally scaled up meaningfully in the last 12 months, why is the API growth only 5% on a year-on-year basis?
Yes. Hi, thank you for the opportunity. Ankur, you mentioned a few reasons impacting API growth in the fourth quarter. If you look at the 9% year-on-year API growth for the full year as well, it does not appear to be very different than the historical market growth trends. Now, this is despite addition of the Limbasi facility as well as a couple of launches which Sudhir sir mentioned. So the question is, apart from the reasons mentioned specific to the fourth quarter, were there any other reasons which you would like to call out behind a slightly muted API growth in FY’24?
Fair enough, Ankur. The second question is on gross margins. We have seen a significant dip both year-on-year as well as Q-o-Q. Now, there are quite a few variables here but Yes, I mean, both on API formulation mix, then the domestic exports mix, maybe something on the product mix which you want to call out. So if you can break your response across some of these parameters that would be really helpful.
Sir, at the beginning of the fiscal, you had alluded to focusing more on volume growth in FY '25, especially with all the new hospitals, which became operational in 2024. Now given that we are seeing decent volume growth across both these newer centers as well as the existing centers, how should we look at ARPOB growth in FY '26?
Actually, that was my other question. I mean, ALOS, both in new and existing, has increased meaningfully in 9 months. So let us know the reasons, at least for the matured hospitals, what is the reason for the sharp increase?
Sir, we had mentioned once that if there is demand, we might look to add another hub in Hyderabad at the appropriate time. Now given incremental supply coming up from competition, do you think there is enough demand to add another hub in Hyderabad over the medium term?
Sir, and if you look at the last decade, we have entered into several new markets. So Bangalore, Chennai, then the two hospitals in Delhi now. I mean, maybe we can also include the upcoming Gurgaon there is Vizag as well. So if you look at the next 5, 10 years, you mentioned about Delhi NCR and the plans over there. But apart from that, apart from these existing markets, which other markets can we potentially look to target?
Yes. Hi. Good morning, everyone. So first question, we have eight hospitals in Hyderabad now with 110 new beds commencing operations in the past few months alone. You also spoke about possibly adding another hospital in the coming years. So just wanted to understand, how are you thinking about the impact of cannibalization in Hyderabad?
Understood, sir. The second question was, any color on the performance of the Madhukar Hospital in this quarter? You had mentioned about a pickup in performance in this scale. So any thoughts on how's the performance been in the first quarter?
Hi, good morni ng, everyone. Sir, can you provide some qualitative comments on the performance across Bangalore, Chennai and the Madhukar Hospital in FY24?
Thank you for that, Vikas. And just to follow up on Madhukar, what is the outstanding amount now? And safer to assume that the hospital is making EBITDA margins in the range of early double digits even today?
Hi, good evening, everyone, and thank you for the opportunity. So, firstly, can you comment on the visibility for the CRO segment in particular, given that the funding environment is not fully back yet?
Understood. The second one is more on the, I mean, both on CRO and CDMO, actually. Qualitatively, possible to provide some color on the number of RFPs as well as the number of client audits, which you have been seeing over the last one? Specifically within that, is there any change in these RFPs as well as client audits given the delay in the Biosecure Act?
Hi, thank you for the opportunity. Sir, you identified cardiac as a key focus area and especially with the Sanofi portfolio coming in, we would have imagined that the numbers look better. But if you look at secondary sales data, growth clearly doesn't seem to be very strong. You spoke about that restructuring earlier, but is there any other challenge you might want to highlight on the cardiac side?
I mean, not just for say this quarter or maybe the last few quarters. In general, if I look at growth in the cardiac segment for us as reported by IQVIA, the numbers have not been at par with what the therapy growth has been. So just trying to understand, I mean, there was a senior leadership change as well a couple of years back on the chronic side. So any steps you might want to highlight even before say Sanofi came in, any impact of that coming in, addition of MRs as well, any other changes which should help give us more confidence on the growth trajectory in cardiac going forward?
Hi, thank you for the opportunity. Satish, you spoke about traction in Tenecteplase in emerging markets, can you please elaborate on the key markets wherein we are seeing that traction? And secondly, do we have that 4.5-hour approval in each of these markets or in some markets, we are still at 3 hours?
Understood. So basically, in terms of penetration, it is safer to assume that in many of these emerging markets, there is a good growth runway ahead for the next few years and then Europe will be on top of that. Is that a fair statement?
Hi, thank you for the opportunity. So, first question, you had earlier spoken about starting construction in one half of the land parcel at the South Delhi Hospital due to certain legal issues. Now with the soil testing started, should we assume that all t he legal issues as well as the pollution-related stoppages have been resolved?
Understood. And similarly, Pankaj, if you can talk about the timelines for the Indore hospital as well?
Hi, good evening, everyone. So in the previous call, you had outlined a host of issues around Lucknow, including competition, approach of some of your competitors, availability of clinicians, community connect, et cetera. So while there would have been a seasonal benefit at Lucknow in Lucknow in this quarter, similar to the other facilities, can you comment on how has been our progress in addressing some of these challenges seen over the last few months? And what are our expectations going forward?
That's very helpful, Pankaj. A couple of follow -ups there. One is, in terms of competitive intensity, what is your assessment now? Are we in a slightly better position today as far as the market is concerned versus six months back? Or it has only got worse? Any thoughts on that front? That's one. And the second question is, from a margin perspective in Lucknow, of course, we have com e down a lot from our peak levels. I think last time you had mentioned that the recovery will be gradual. So some of these initiatives you spoke about, should we expect the recovery to continue to be gradual as far as our margin trajectory in Lucknow is concerned?
Hi, sir. Thank you for the opportunity. So, first question, would it be fair to say that the sharp 36% sequential drop in EB ITDA for the developing hospitals is only because of Lucknow and Patna would have actually been sluggish or maybe would have grown a bit in terms of EBITDA in this quarter?
So, sir, then if we have to break down the reasons for this decline, you mentioned three reasons. One is severe winter. Then the second reason was Lucknow has always been a bit weak in the fourth quarter. And the third reason is we had talked about, I mean, in the third quarter, some benefit of dengue. So, that had led to some inflated numbers in the third quarter. Would that be a fair assumption, sir? I mean, any other reason for the sequential drop apart from these things?
Hi, thank you for the opportunity. Vivek, you spoke about growth being driven by the commercial segment within CDMO. So, in that context, can you provide some qualit ative comments on the improvement in utilization rates, particularly at our overseas facilities in this quarter?
Yeah, so that's why my question was any qualitative comments would be helpful.
Sir, one question is on the technology bit or the capabilities bit. Now out of the various capabilities, technologies such as say lyophilization, low chemistry, column chromatography which we offer, which ones would you say are our forte? And similarly, I mean which would be the technologies where you think that there is some catching up to do in terms of the depth of our offering?
The second one is more of a clarification. Last month in December, there was this FDA letter which came for Librela. This is not really a new issue, but I just wanted to understand, get confidence from you whether that $50 million annual number, do you foresee any risk to that at all?
Good morning, everyone. Bhaskar sir, Abhinay, just wanted to understand your thought process in selecting Kerala as a focused market, especially given the plan to add 3,000 beds. Kerala is also a slightly different market with maybe higher cost, etcetera. So, I just wanted to understand whether this entry was it slightly opportunistic considering that we got a great team, your insights will be really helpful. And maybe I have a follow -up there, but maybe your response here and then I can ask that other question.
Appreciate the response, sir. Maybe the context to ask this question was also, I mean we had till about 2 years, 3 years back, zeroed in on Maharashtra is the next AP, Telangana, equivalent for the company with 5 years, 10 years view. Now with I mean the focus on Kerala as well as, I mean, the additions coming up in Bangalore, have we curtailed our expansion plans for Maharashtra beyond plans which you've already announced?
Sir, first question for Nashik, Thane and 2 Bengaluru hospitals. So from where are we hiring the doctors? Is it largely some other corporate hospitals or relatively smaller hospitals?
Understood. The second question is on Secunderabad. You had mentioned earlier some time back that there is also a possibility of doing brownfield in that hospital, if the need be. Now given the lower ALOS as well as lower occupancy, would it be fair to assume that there will not be any expansion in Secunderabad over the foreseeable future?
Sir, can you help us understand the volume growth in the Secunderabad and Kondapur Hospital is a bit better. I mean, from what we understand, while we may be a bit constrained in Kondapur on the capacity side, there definitely seems to be more scope on occupancies in Secunderabad, We get that point one, the new doctor additions and they will start contributing. Just trying to understand what are the dynamics here in terms of competitive pressures? I mean wasn't the doctor issue relevant in the past? I mean, why do we need more doctor additions to kind of take care of the volume growth, especially in Secunderabad. If you can just help us understand these things would be really helpful.
Understood. And any view on the competitive dynamics in that micro market.
We have adde d two new cities to our network in the past six months. Other than these two, our focus seems to be on growing in the existing market at least over the next four to five years. The question is beyond what we have already announced so far on the expansion f ront, is it fair to expect a relatively higher expansion announcement coming through towards the newer markets?
So, maybe a link to that one, how are you looking at this expansion from an operational standpoint, I mean any need to beef up the senior management team, can senior management bandwidth be increasingly an issue going forward?