Shyam Srinivasan

First one on the Custom Synthesis. I think when you mentioned 49%, I was just trying to do the calculation. 49% is the contribution of the Custom Synthesis this quarter. So if I do the simple math between quarter 3 and quarter 4, 46% has gone to 49%, if I recollect, right? So there's a huge jump. I know you don't ask us to look at quarter-on-quarter.

So 500 basis points change between 46% going to 51%, and maybe the question -- let me rephrase. Is it a sustainable new base for us to look at Custom Synthesis or do you think the quarterly variations can remain? How should we look at fiscal '25?

Understood. Understood. The second question in is on cash flow from operations for full year fiscal '24 and '23, roughly similar PBTs, like ₹100 crores difference here or there, add back some amortization D&A. But when we convert that to cash flow from operations, right, there has been a much more lower number this year when I compare to '23.

If I see Ms. Nilima’s comments, 46% is custom synthesis for the quarter. Did I get that right?

If I were to put that in numbers, we have seen a very good QoQ improvement in CS, right? It was 40% last quarter, now it’s 46. What has driven some of the growth in this CS segment? If you could give us some qualitative sense. And also for the path forward, I know these numbers vary between quarters, but how should we look at custom synthesis contribution when we look forward?

My second question is on the rest of the business. I think generics and nutraceuticals or carotenoids, both of them have seen a softer quarter. I think Dr. Kiran at the start talked about generic pricing pressure. But we are getting a little mixed signals here. All the formulation companies are talking about low pricing erosion.

Just wanted some more clarity around the ‘excluding COVID opportunity ’ growth, which has been called out. Sir, we have not called this number out in the past. So, if you could help us with what those numbers roughly are. So when I do the math, using your 60- 40 for this quarter, for example, for Custom, I arrive at a INR 765-odd crores number for quarter 2.

Nilima, madam, are you saying this for the custom only? This is total corporate? If you could clarify, please.

And if you could just bifurcate that between Generic and Custom, any directional color that will be helpful?

So, the first one, trade generics. So, how has the progress been in fiscal 24 for trade generi cs? And just a related question, many of your peers have actually made a separate subsidiary of trade generics. The words that one CEO used was agility and focus. So, just want to understand what's happening in general in the space in terms of trade generics and what's our strategy there?

Aman, just on the market, just the fact that why are some of these companies attempting to do a subsidiary, is just the scale point or you think you're seeing competitive intensity in this space pickup?

And the last question on this trade generic, there was this notion that trade generics may tend to impact acute volumes more and which is why I PM volumes have been generally weaker. But what stops even chronic volumes to also be impacted by trade generics? Is there any impediment that prevents even chronic volumes to start moving towards trade generics?

Just going back again to the capital allocation point, how do you look at the valuation for some of the assets that are in the market which you may be evaluating , may not be evaluating , are valuations at this point of time stretched from whatever 12 months forward kind of a basis , so does it mean, are you reworking some of your payback metrics upwards, if it takes another year or two, because historically if you…

Sudhir, Just trying to comment on your net debt-to-EBITDA, where you said organically as we stand today, we will go to less than one time on net debt-to-EBITDA, may be historically in the past we have gone up to 3 x. So, doesn't mean a change in our PAT, that we are open, there is debt availability, the private equity firms available. And just want to tie in the philosophy here because I sometimes miss that.

My last question is just on the digital marketing initiatives that you outlined at the start of the call. This seem to be showing some amount of traction now. So, can you just elaborate on qualitative comment around the digital marketing, what are some of the early successes that have been in the brand and what can we expect going forward?

Just the first one, given the Supreme Court order or whatever the NGO petition around standardized pricing. I just want to know what your take is in terms of how this could likely pan out. And a related question is on the ARPOB. So, we have again seen another 10% kind of ARPOB growth for the quarter, maybe for the full year is also similar. So, how should we look at ARPOB growth looking ahead? Is there any impact?

We are not planning any price increase this year, is it? Or we are almost done or so any benchmark with some of our competitors, our pricing is similar?

Understood. Very helpful. Just the second question is on the Agilus. I know we had a DRHP out there. We had to withdraw it for whatever market conditions/whatever the performance of the Company. So, what's the medium-term outlook for either a listing or when should we look at it? Also, the related question is on the put option liability for the private equity. How are we going to navigate it?

Just the first one is on January. I don't know whether you talked about the occupancies, how it's trending. How should we look at quarter 4. And just a related question on this first part is around occupied bed days that they have basically been flat, maybe slightly down. So how should we look at ramping up occupancy for next year?

So what is like January number, just a factual question. Is it -- Q4 is better than Q3?

Helpful. Just the second question is on your slides 20 and 21. I'm just trying to analyse what has happened both in the margin metric. And when I look at FMRI, the Q -o-Q decline was the highest in the top 10 hospitals, right? It's declined Q -o-Q by about 12% when the company did only a 4% decline.

Dr. Ashutosh, just a question on HR, human resources, doctors. So we have onboarded many clinicians in different medical specialties. I think we have been doing it in the first half as well. One of your peers earlier today have also mentioned that the guar anteed payouts for their doctors, they're trying to get more people on guaranteed payouts.

Got it. So when I look at your professional charges to doctors, would there be a way to kind of gauge what's happening on that particular line item, especially on doctor compensation? Would that give me the full picture? Or it could also be in employee benefits? So how should we track that wage inflation, especially for doctors?

Got it. So that is helpful

First one is on Cenexi. For the 11 months, I think in euro terms, we have done a revenue of Euro 166 million, I’m just annualizing it for the 12 month s, it’s around 180 million and maybe I ’m wrong. But this used to be a 200 million run rate. So is the 20 million, is that the lost opportunity that we have seen because of some of the challenges. And for the quarter, I think it came at EUR40 million.

Sorry, I’m unable to understand. So, I get the 20 million order backlog, but should we look at quarter 1, quarter 2, quarter 3, when we look next fiscal for Cenexi, is it the 40 million run rate is what we think we can do or there’s a ramp at some point of time?

Yes. And at what time, when we reach the 50 million run rate quarterly, I'm just sorry, I'm looking at historical numbers, that's when we reached whatever the pre -acquisition run rate of over EUR200 million is when we'll potentially get the EBITDA margin t o be positive. Would that be fair?

The first one is on the U.S. market and the sustainability of the revenue run rate, right? So we have done about INR8.2 billion for the quarter. So, I just want to understand what's driving that. Your commentary talks about a stable pricing environment. So , is it primarily driven by volumes? Are we in a position to sustain this quarterly run rate?

Sadu, are you any guidance on how we should look at Q4 now? Or do you think we can sustain this over 8 billion?

Understood. You broke down the 14% Q -o-Q growth for the quarter as 8 of volume and 3 of new products, right? So that still leaves another three percentage points, which would be the enoxaparin. Is that how you're breaking it down?

Just one on the core business margins, we have come back to around 34, close to the mid -30s that we have guided in the recent past, right? So, how should we look at margins on a core business going forward, and what are some of the levers that we have ? I s it just operating leverage, or do you think there is a pricing environment?

What it is also just trying to disaggregate , just the US Y-o-Y growth of 9%, right? So, you are saying volumes are 11 and -2 is price, and this 11 includes new products, right? So how will we look at volume growth for base products and what has been contributed by new, for example, geography say the US?

Sir, second question on are we reinstating or bringing back some kind of a revenue guidance, so you seem to have given a 30% to 32% on EBITDA, but anything on the revenue guidance either second-half or for the medium term?

Just the first one is on the outlook as we look forward, right? You've talked about fiscal '25 being like a consolidation year. I remember in your earlier calls, you talked about like a medium -term growth CAGR of 20% and look at not a quarterly , but more at a more medium -term level. So I just want to get some of the key milestones that we need to keep in mind in fiscal '25 and '26.

Just the second question is on the generics si de of things, right? Was there any comments on either pricing or volume trends for the quarter? Again, we're not looking quarter -to-quarter, but just trying to understand because that's where, say, prime was like down 16% YoY. So just trying to understand, is this some form of pricing pressure? Or do you think this is just phasing of supplies?

Just first one on AHLL. Apart from diagnostics, I think the other segments of it have been like slow growth for the 9 months, even for quarter 3. Anything that we need to keep in mind? Is there a ; would we s ay an outlook where it goes back to a double-digit growth for the other segments as well?

Yes, Sriram, but when I look at like footfalls, I still see volume growth. So, what explains that discrepancy between volume growth and revenue growth being much subdued?

Got it. Helpful. And just last point on the AHLL, on diagnostics, right? So, we have done about 19%, 20% growth, but the variation just looking at from an industry seems to be all over the place, right? So have low single -digit growth to companies like you're growing 20%. So, anything you can speak from , you know obviously, you are starting from a lower base and maybe your margin trajectory is lower.

Ya, thank you. Good evening and thank you for taking my question. Erez, just the first one is on the overall CDMO kind of space, I know you have a subsidiary. But just want to understand, are you able to see more demand coming from global innovators towards India based companies , including companies like yourself or your subsidiary? So, that's the fi rst question.

So, Erez, I'm just trying to understand from a capital allocation standpoint, will this be significant for you or you think we have enough other projects in the pipeline for us to be, you know, or do you think this will be a small part and will not be ramping up?

Just a second, a financial question to Parag. I'm just looking at your disclosure around net cash generated after removing t axes and looking at FC F. So, the conversion has been low. So, just want to understand, I know there has been an acquisition you paid out for in the quarter one, but just want to understand , either in terms of CAPEX or in terms of intangible build -up, is there something that we need to keep…

Just the first one again on the consolidated cash flow statement. Just the net cash generated Y-o-Y has declined despite similar profits. So just -- I can see it is working capital. But if you could explain why our lower cash generated, please?

So by the end of the fiscal, we expect this to be -- the generation to be in line at least with the growth in PBT. Let's assume?

And just on the opening comments now, I think called out that the U.S. business formulation, we have now innovative higher than Generics. So obviously, you don't call it out, but of the $500 million U.S. For further updates and specific queries, please visit www.sunpharma.com or feel free to contact Abhishek Sharma, +91 22 43242929, abhi.sharma@sunpharma.com, Gaurav Chugh, +91 22 43245373,…

Just on the U.S. formulation revenue, if your kind of back out whatever is the Taro U.S. perhaps, I think you mentioned in the opening remarks as well that there is like a $470 million going to $430 million on the overall level. Even if I do it at Taro, it seems to be like a $30 million down Q-o-Q. So is that largely just attributed to the plant issues? If you could clarify me.

Sir, quarter -on-quarter. $470 million went to $430 million right? U.S. formulation. Q1 versus Q2?

Okay. But there was some mention about even plant, right, Halol or no, that has already come through earlier the year. Sorry...