Couple of clarification. How much how much are you guiding for FY '26, the total number?
INR 1,000 crores. And how much of that we have already spent in '25?
Questions across 20 calls
Rashmi Shetty
Dolat Capital
IPCA Laboratories Limited
Sir, for the products, which you mentioned, 16 to 7 launches, which we will be doing in the business. That will be through Unichem. I mean, the sales will be the part of Unichem or will that be included in subsidiary or it will be part of generic business? I just wanted to know, like the next 1 year, you're looking at a very strong growth, like the runway of this? Or is it -- this year has been a one-off, etcetera? On a conservative basis, we can guide anywhere. between 12% to 15% growth going forward for generic business. Over and above that, whatever business will come out of Understood. Helpful. And just one small question. I wanted to understand your MR productivity. So we've seen the last quarter t hat there was an improvement. So if you could just update the MR productivity? And what is the current strength and the plan for any additions going ahead? Overall, MR productivity is around 4,25,000 current ly. We are almost around 7,000 medical reps as of now. We will be adding cer tain number of people in current year. That process is going on. But additional will be no t more than 5% increase in overall field Okay. So last quarter, it was slightly higher, right? It was I think 4,60,000 was Wait. Second quarter is always more productive. Bec ause of seasonality issues and all. And this quarter, because of season not being that cond ucive, sales are also a little bit lowe what we expected. If not nothing, nothing abnormal. Second quarter is always the best quarter in the domestic branded business. side, I think we have added almost around INR 20,000 productivity Understood. And just there's some notification from the government with respect to the medical professionals kind of antiviral or anything they should be slightly on a conservative basis. Did you feel anything on the ground or is it more just a stateme nt from the government. Pardon. We didn't make out what was your question actually. There were some rules that the government officials have told the medical representatives to be slightly on a conservative basis in prescribing pain o r anything with respect to the acute basis. So in that... We have not seen any impact, anything like that in the market place. No. The next question is from the line of Rashmi Shetty from Dolat Capital. products, which you mentioned, 16 to 7 launches, which we will be doing in the business. That will be through Unichem. I mean, the sales will be the part of Unichem or will that be included in subsidiary or it will be part of generic business? IPCA Laboratories Limited February 15, 2024 I just wanted to know, like the next 1 year, you're looking at a very strong growth, like the 15% growth going forward for generic business. Over and above that, whatever business will come out of US will be add Understood. Helpful. And just one small question. I wanted to understand your MR hat there was an improvement. So if you could just update the MR productivity? And what is the current strength and the plan for any Overall, MR productivity is around 4,25,000 current ly. We are almost around infilled around 7,000 medical reps as of now. We will be adding cer tain number of people in current year. That process is going on. But additional will be no t more than 5% increase in overall field higher, right? It was I think 4,60,000 was -- 4,63,000, Wait. Second quarter is always more productive. Bec ause of seasonality issues and all. And this quarter, because of season not being that cond ucive, sales are also a little bit lowe r than what we expected. If not nothing, nothing abnormal. Second quarter is always the best quarter 20,000 productivity per man in Understood. And just there's some notification from the government with respect to the medical professionals kind of antiviral or anything they should be slightly on a conservative nt from the government. There were some rules that the government officials have told the medical representatives to r anything with respect to the acute products, which you mentioned, 16 to 7 launches, which we will be doing in the US business. That will be through Unichem. I mean, the sales will be the part of Unichem or -- and
Marketing. Understood.
Thanks for the opportunity. Just one clarification whatever guidance you have given for the branded business and your generic business that inc ludes the Unichem integration sales also?
Okay not even in your generic portfolio where you have upgraded it by 20%?
Natco Pharma Limited
Sir, in the opening remarks, if I'm clear, you mentioned 20% dip in the sales and 30% dip in the profit for FY '26, right?
Yes. Sir, is this also because you're going to see any sort of erosion in your Revlimid product despite we will be taking the maximum market share, right, this year?
Congratulation on good set of numbers. So, I have 2 questions. First question is related to the domestic business, given we have taken Rs. 35 crores cash and there was some change in the business model. If you can give more color on it? And if you can also give information whether the impact is over or we are going to see in Quarter 1 as well. And since we were doing quarterly sales of Rs. 100 crores in India business, advance is Rs. 35 crores. We are still running at the rate of Rs. 85 crores or something. This is just a quarter -on-quarter basis, or we would be able to maintain this Rs. 100 crores quarterly? This is something which we want to do.
And we will be able to grow 14% to 15% from this level, whatever we have done around Rs. 386 crores in FY '24?
Alkem Laboratories Limited
Yes, thank you for the opportunity. Just again on the US business, when you said that we will be able to clock at least mid-single digit growth, how many launches are you planning for FY'26? Earlier, you indicated that you will be doing around 1 or 2 high-value launches this year.
Okay. And when you see your working capital days, it has increased in FY '25 versus FY '24. Will it remain at the same level or it is likely to increase as your US supplies and everything will start more?
Just again, on India business, earlier, used to basically be very strong in the pain segment, but we have underperformed this entire year. Also, in your cardiac and dermatology therapy, we are underperforming in the market. So, what are the challenges over here? And how should we really look at this? Is it a temporary thing which we have faced in this year and it's going to be strong next year or how should we look at it?
Understood. So your domestic guidance for this year is around 7%, right?
Congratulations on good set of numbers. Sir, just want to know a bit more about India business. Though we have given a very strong growth this quarter, and we have seen some recovery also in all the therapies, but we are still lower in anti-infective and pain segment versus IPM anti - infective and pain segment growth. So if you could give reasons for that, where we are lacking behind. And what are your plans to overcome it?
And about pain management?
Mankind Pharma Limited
In the anti -infective segment, in the presentation also, we have mentioned that we have underperformed the market, and you already mentioned that certain corrective actions had been taken. But in that, related to the product, you mentioned that we have also lost sales in the codeine-based product. But what I understand that the Codistar has already started picking up very well, and it is already getting around 80% to 90% of the codeine -based sales. So what is exactly leading to say that this product-related issue is still there?
So for this full year, taking into account that anti -infective will be slowing down, do you think that we would be just showing Mankind's domestic formulation growth will be high single digit sort of?
Just again on the export business, do you think or foresee any competition for your one -off product in the coming year?
Okay, got it. And sir, second question is...
Just one question is on Dydrogesterone. When we see the I QVIA data, we see that the value share has come down and there are some other competitors also picking up the share which I understand is mainly due to the competition coming in . But in the volume share also , it has slightly come down. So, here also is there any adjustment of modern trade which is not shown by the IQVIA data? And whether really the volume share has come down or we are really picking up in that product ? Second question is in case if the trade margin rationalization comes in the future, will there be any impact on Dydroboon sales because that is through clinic, righ t, and Drogyna is at the chemist level. So, if you can give some picture on it?
Yes, sir. Very well. And there won't be any impact in case of trademark and rationalization comes, right, on this particular product?
First question is related to other expenses. What I want to understand is that all your new expenses which are coming from the Udaipur plant have already been expended in Q2 or i t is going to be increased from Q3-Q4 onwards?
And related to the consumer health segment, you mentioned that you will be doing some launches from Jan month. If you can just give more color on it whether there would be a line extension of our major brands , or you will be launching a completely new category to cater it? And related to the consumer segment only if you can also give more color on what is our rural and urban split.
Granules India Limited
So just a follow -up from the earlier participant. You mentioned in your presentation that your expenses during the quarter has gone up due to the professional fees related to the remediation activity and some SPS expenses also. So if you can quantify that number, what was the cost related to the failure to supply and that penalty is going to recur in next 2, 3 quarters? Or you feel this is one-off in third quarter only? And remediation cost, how much is something which is recurring in nature in the next subsequent quarters?
Okay. So out of $3 million, which you are saying that -- which has been expended in this quarter, how much is something which would be rec urred? I mean is it like 25%, 50% of this amount would recur in the quarter 4? To model in our numbers, we would want to know that?
Yes, thanks for the opportunity. Our first question is on the remediation cost. You mentioned in the call that you all have hired third consultants. So for that any big expenses is supposed to be spent? I mean for -- in this year, in FY '25 basically in the second half of the year or it is already spent in the second quarter?
$2 million and that will be sitting all in the other expenses, right?
Sir, my first question is on the conclusion of FD , we have achieved now 76% of the FD contribution to the overall total sales, how could this for the entire year and are we not focused on increasing the pace of API and PFI during the year? What I want to understand that whether the contribution would fluctuate quarter-on-quarter or more or less it would remain stable during the year?
And what is your target contribution of FD to total sales and what are you aiming to achieve this in next 2-3 years?
Sir, basically on the US business and just to understand more on the gross margin side, the entire gross margin expansion, that we are seeing a sharp jump from quarter-to-quarter as well as on Y-o-Y basis, it is mainly driven by this US business only or some other factors are also contributing it?
Okay. So, if I try and understand, what is the volume growth currently, which you are seeing in the US business and what is the kind of price erosion that we are seeing in the US?
Cohance Lifesciences Limited
Yes, good evening and thanks for the opportunity. O n your API segment , while I understand that FY'24 the API sales fell over compared to FY'23 that is what I'm seeing from your presentation. I just want the split what was the rate variance versus the volume. Most of the other peers are also talking about that there wa s a negative rate variance in FY' 24 in high double digits. However, the volume growth was pretty high. So, if you can give about the Suven it would be helpful, Suven plus Cohance?
Yes. So I'm just talking on the pricing front in the API segment. If I'm correct that whether the pricing for FY'24 versus FY' 23, if we compare what was the decline in the pricing and what was the volume growth in FY'24 over FY'23, only in your API segment?
Poly Medicure Limited
Congratulations on the good set of numbers. So just on capex, again, you mentioned that the investment for the capex would be around the similar levels of FY '24 that is roughly around INR250 crores this year. So generally, this INR800 crores, we will be spending phase wise right every year?
Sir you said that you will be in vesting in Haridwar plant and in Faridabad, so these will be completely new facilities, right? And one more you said which I missed it.
Ajanta Pharma Limited
Sir, the first question is related to the guidance for Branded Generic market, where you have mentioned, we will be able to do mid -teens sort of growth in FY'25. What are the factors that would drive these mid-teens growth? And is there any risk from Red Sea d isturbances, which can erode this growth, if you can highlight that in detail, both in Asia and Africa business. And also if you can guide something on India business.
Got it. And related to India market, what kind of guidance are you anticipating for FY'25?
So, just on the R&D expenses, last quarter you mentioned that 6% of R&D which we are going to be spending by FY24, but your first half is just 5% of sales now . Is it that in the subsequent quarters, the R&D will be very high or do you feel that it would more or less remain at this 5% level?
So probably it's fair to say that for FY24, R&D guidance should be around below 6%; between 5% to 6% sort of?