IPCA Laboratories Limited earnings call

M R. NITIN LIMITED pca Laboratories Limited 5 Earnings Conference Call” November 14, 2024 JIT KUMAR JAIN –M ANAGING DIRECTOR LABORATORIES LIMITED ARISH KAMATH – CORPORATE COUNSEL AND OMPANY SECRETARY – IPCA LABORATORIES IMITED ITIN AGARWAL – DAM CAPITAL ADVISORS IMITED IRECTOR – OUNSEL AND ABORATORIES DVISORS

Ladies and gentlemen, good day, and welcome to the Conference Call lines will be in the listen after the presentation concludes. Should you need a ssistance during the signal an operator by pressing star, then zero on y our touch conference is being recorded. I now hand the conference over to Mr. Nitin Agarwal from DAM Capital Advisors Limited. Thank you, and over

Thank you. Good afternoon, everyone, and a very warm welcome to post-earnings conference call hosted by DAM Capital Advi sors Limited. On the call today, we have representing Kamath, Company Secretary and Company Counsel. I will hand over the call to Mr. Jain to make the o pening comments, and then we'll open the floor for questions. Please go ahead. A.K. Jain Thanks, Nitin and DAM Capital answer given may include some forward expectations. It must be viewed in conjunction with the risk that pharmaceutical industry business faces. Our pursuit. You may take your own judgment on information given during the call. Business performance. Domestic formulation business delivered a growth of 11% for the quarter. Mid - fastest-growing company among the top 20 players. '25 and late September '24. Overall, IPM growth is around 8% and as per IQVIA around 13% growth. And mid IPCA has delivered around 14% growth. Both on acute and chronic segment, Acute segment 12%. And on chronic segment, your market growth is around 10% and we have delivered around 17% growth as per IQVIA. IPCA continued to improve its market share. In Q2 FY '25 , our market share has increased to 2.14% as against 2.04% in Q2 FY '24. And mid 2.03% as against 1.92% in mid point improvement in the overall in market share. A nd in second quarter, the improvem almost around 10 basis points. We have now 6 brands among the top 300 brands in the IPM. CTD-T has now entered in top 300 brands list with 193 ra nk in mid rank gain. On export formulation business, we have delivered a round 15 branded promotional business has declined by around 6% in this quarter. Generic business has IPCA Laboratories Limited November Ladies and gentlemen, good day, and welcome to the IPCA Laboratories Limited Q2 FY '25 Conference Call , hosted by DAM Capital Advisors Limited. As a reminder, all participant lines will be in the listen -only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need a ssistance during the conference call, please signal an operator by pressing star, then zero on y our touch -tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nitin Agarwal from DAM Capital Advisors Limited. Thank you, and over to you, sir. Thank you. Good afternoon, everyone, and a very war m welcome to IPCA earnings conference call hosted by DAM Capital Advi sors Limited. On the call today, we have representing IPCA management Mr. A.K. Jain, Jo int Managing Director; and Mr. Harish Kamath, Company Secretary and Company Counsel. I will hand over the call to Mr. Jain to make the o pening comments, and then we'll open the floor for questions. Please go ahead. Thanks, Nitin and DAM Capital for organizing this call. Today's call and discussi ons and answer given may include some forward -looking statements based on our current business expectations. It must be viewed in conjunction with the risk that pharmaceutical industry business faces. Our actual future financial projections may differ from what is projected in pursuit. You may take your own judgment on information given during the call. Business performance. Domestic formulation business delivered a growth of 11% for the -September 2024, IPCA is ranked as the 16th player i n -- as per IQVIA and the growing company among the top 20 players. IPCA has outpaced the industry in Q2 FY '25 and late September '24. Overall, IPM growth is around 8% and IPCA has delivered almost per IQVIA around 13% growth. And mid -September '25, IPM growth is around 8% and has delivered around 14% growth. Both on acute and chronic segment, IPCA has delivered better growth compared to the market. Acute segment in this quarter has grown by almost around 7% and IPCA 12%. And on chronic segment, your market growth is around 10% and we have delivered around 17% growth as per IQVIA. continued to improve its market share. In Q2 FY '25 , our market share has increased to as against 2.04% in Q2 FY '24. And mid -September 2024, our market share is around 2.03% as against 1.92% in mid -September '23. So overall, there is almost around 1 1 basis point improvement in the overall in market share. A nd in second quarter, the improvem almost around 10 basis points. We have now 6 brands among the top 300 brands in the IPM. T has now entered in top 300 brands list with 193 r ank in mid -September 2024 with 88 On export formulation business, we have delivered a round 15 % growth for the quarter. The branded promotional business has declined by around 6% in this quarter. Generic business has IPCA Laboratories Limited November 14, 2024 Laboratories Limited Q2 FY '25 As a reminder, all participant only mode and there will be an opportunity for you to ask questions conference call, please Please note that this I now hand the conference over to Mr. Nitin Agarwal from DAM Capital Advisors Limited. IPCA Labs Q2 FY '25 earnings conference call hosted by DAM Capital Advi sors Limited. On the call today, we int Managing Director; and Mr. Harish I will hand over the call to Mr. Jain to make the o pening comments, and then we'll open the for organizing this call. Today's call and discussi ons and looking statements based on our current business expectations. It must be viewed in conjunction with the risk that pharmaceutical industry actual future financial projections may differ from what is projected in pursuit. You may take your own judgment on information given during the call. Business performance. Domestic formulation business delivered a growth of 11% for the as per IQVIA and the has outpaced the industry in Q2 FY has delivered almost September '25, IPM growth is around 8% and has delivered better growth compared to the market. growth is around 12%. And on chronic segment, your market growth is around 10% and we have delivered continued to improve its market share. In Q2 FY '25 , our market share has increased to September 2024, our market share is around September '23. So overall, there is almost around 1 1 basis point improvement in the overall in market share. A nd in second quarter, the improvem ent is almost around 10 basis points. We have now 6 brands among the top 300 brands in the IPM. September 2024 with 88 % growth for the quarter. The branded promotional business has declined by around 6% in this quarter. Generic business has grown by around 8%, and institutional business in t his quarter has grown by almost around 85%. So overall business growth has been ar around 15% overall for the quarter. Overall API bus iness has declined by around 5%. Domestic business has recovered and delivered a gro wth of around 14% for the quarter. But API business has come And overall API business for the quarter is around same period last year. On margin front, our stand 20.86% in same period last year, an improvement of almost around 2.03%. Our consolidated EBITDA margin for Q2 FY '25 is at 19.10% as against 17.64% for Q2 FY '24, an improvement of around 1.46%. The improvement in the margin is largely due to improvement in product mix, lower input costs and lower manufacturing and other overhead. Both the stand alone and consolidated EBITDA margins are better th an the guidelines given before the FY '25. Having giving the broad numbers, now I request participants to ask qu

The first question is from the line of Kunal Dhamesha from Macquarie.

So sir, the first question on the FY '25 outlook th at we had provided earlier on the top line consolidated top line and EBITDA margin. If you can update are your revised ex of the banks in the recent phone calls have also highlighted...

Mr. Kunal, your voice is fluctuating. I would repea t question.

Is it better now? A.K. Jain Kunal, in the

Sorry, sir, sorry, sir. Is it better now? A.K. Jain Yes, better now.

Sure. Sir, I just wanted to ask, we had provided so me guidance on top line and EBITDA margin on a consolidated basis updated expectation for FY '25? A.K. Jain If you look at our margin side, our guidance for stand that -- I think, yes, incrementally, we have delivered arou nd 22. for the full year overall against 21% guideline. And the similar line, overal l consolidated margins will also be better. Overall growth projections given for t for the whole of the financial year, we will have a growth of almost around 9% to 10% now. IPCA Laboratories Limited November grown by around 8%, and institutional business in t his quarter has grown by almost around 85%. So overall business growth has been ar ound -- generic business, business growth is around 15% overall for the quarter. Overall API bus iness has declined by around 5%. Domestic business has recovered and delivered a gro wth of around 14% for the quarter. But API business has come -- API export b usiness has continued to show some kind of decline. And overall API business for the quarter is around INR 319 crores as against same period last year. On margin front, our stand -alone margin for the Q2 EBITDA margin is 22.89% aga inst 20.86% in same period last year, an improvement of almost around 2.03%. Our consolidated EBITDA margin for Q2 FY '25 is at 19.10% as against 17.64% for Q2 FY '24, an improvement of around 1.46%. The improvement in the margin is largely due to improvement n product mix, lower input costs and lower manufacturing and other overhead. Both the stand alone and consolidated EBITDA margins are better th an the guidelines given before the FY Having giving the broad numbers, now I request participants to ask qu estions. The first question is from the line of Kunal Dhamesha from Macquarie. So sir, the first question on the FY '25 outlook th at we had provided earlier on the top line consolidated top line and EBITDA margin. If you can update us after H1 performance what revised ex pectation for the full year '25 have a further impa c t on consumption of the banks in the recent phone calls have also highlighted... Mr. Kunal, your voice is fluctuating. I would repea t -- I would request you to repeat your Is it better now? background also some noise is coming. Sorry, sir, sorry, sir. Is it better now? Yes, better now. Sure. Sir, I just wanted to ask, we had provided so me guidance on top line and EBITDA margin on a consolidated basis with the H1 performance behind us, what would be yo ur updated expectation for FY '25? If you look at our margin side, our guidance for stand -alone margin was around 21% as against I think, yes, incrementally, we have delivered arou nd 22. 89%. And therefore, overall, for the full year overall -- your -- standalone EBITDA margins are likely to be around 2 2% as against 21% guideline. And the similar line, overal l consolidated margins will also be better. Overall growth projections given for t he whole year was around 10% to 11%. As against thi s, for the whole of the financial year, we will have a growth of almost around 9% to 10% now. IPCA Laboratories Limited November 14, 2024 grown by around 8%, and institutional business in t his quarter has grown by almost around generic business, business growth is around 15% overall for the quarter. Overall API bus iness has declined by around 5%. Domestic business has recovered and delivered a gro wth of around 14% for the quarter. But usiness has continued to show some kind of decline. 319 crores as against INR335 crores in alone margin for the Q2 EBITDA margin is 22.89% aga inst 20.86% in same period last year, an improvement of almost around 2.03%. Our consolidated EBITDA margin for Q2 FY '25 is at 19.10% as against 17.64% for Q2 FY '24, an improvement of around 1.46%. The improvement in the margin is largely due to improvement n product mix, lower input costs and lower manufacturing and other overhead. Both the stand - alone and consolidated EBITDA margins are better th an the guidelines given before the FY estions. So sir, the first question on the FY '25 outlook th at we had provided earlier on the top line -- after H1 performance what t on consumption ? Some I would request you to repeat your Sure. Sir, I just wanted to ask, we had provided so me guidance on top line and EBITDA with the H1 performance behind us, what would be yo ur alone margin was around 21% as against 89%. And therefore, overall, standalone EBITDA margins are likely to be around 2 2% as against 21% guideline. And the similar line, overal l consolidated margins will also be better. he whole year was around 10% to 11%. As against thi s, for the whole of the financial year, we will have a growth of almost around 9% to 10% now.

Okay. So probably at the absolute EBITDA level, more or less the same because lower top line and the margins. achieving those synergies? What have you already re alized in this results in the last couple of quarters? And where do we see that going in the next 3, 4 quarter A.K. Jain Unichem, we have taken over Unichem sourcing product from us, work is still goi ng on. That portion has not started, which will also have some kind of cost reduction for them , a few of currently buying from outside. And I think May, it may take around 5, 6 months. So in current year, practically nothing of that nat ure will happen. We also talked about Unichem's improvement in the API processes, where I think al have reduced overall their manufacturing cost and v alidations are over. Now all these 6 products, the improvements are almost around somewh ere between the 25% to 30% reduction in API. Now the whole process of filing and then tak increment is already done and the balance is in pip eline already. And as far as the procurements are concerned, a lot of benefit has al ready come as buying are now shaken up by the common group. And whatever all got extended to the Unichem also. So those advantages come. As far as market extensions are come, there are a l ot of work are in pipeline and we said that it is going to take a little longer filing in the market and all that. So this may take one more year to start, only the products where the straight away your U.S. dossiers can be filed in Europe and various other markets. So that process is going on. Right now, a few produ cts are already filed, which approvals are yet pending. Larger product range to extend to the other market is going to around 1 more year because it's all regulatory proc ess and what of data needs to be generated. But our initial calculations, where we were talking that on second year onwards, we should be able to get around I think that will surpass in the current year itsel f. In first half of the current year, the EBITDA margin of Unichem is filing , the approvals are received and all that. So the

And sir, last one, if I may. How is our plant clearances? Have you launched any products? And how is the uptake in those products? A.K. Jain I think overall, we have spen goods to US, But most of the goods had reached to t hem at the end of the period, I think they are highly out of that almost these were all in stock. And now sales will start r eflecting from the third quarter onwards. So technically, it's not eliminated in consolidation p ractically in the power. So nothing major has IPCA Laboratories Limited November Okay. So probably at the absolute EBITDA level, more or less the same because lower top line and the margins. Sir, for the Unichem business in terms of synergies , where are we in terms of achieving those synergies? What have you already re alized in this results in the last couple of quarters? And where do we see that going in the next 3, 4 quarter s? Unichem, we have taken over -- we have spoken about many synergies part. As far as your Unichem sourcing product from us, work is still goi ng on. That portion has not started, which will also have some kind of cost reduction for them , a few of our APIs, which they are currently buying from outside. And I think May, it may take around 5, 6 months. So in current year, practically nothing of that nat ure will happen. We also talked about Unichem's improvement in the API processes, where I think al most around 6 products, we have reduced overall their manufacturing cost and v alidations are over. Now all these 6 products, the improvements are almost around somewh ere between the 25% to 30% reduction Now the whole process of filing and then tak ing approval and that will start. Fixed product increment is already done and the balance is in pip eline already. And as far as the procurements are concerned, a lot of benefit has al ready come as buying are now shaken up by the common group. And whatever IPCA benefits are there in terms of lower your pricing, that all got extended to the Unichem also. So those advantages come. As far as market extensions are come, there are a l ot of work are in pipeline and we said that it is going to take a little longer time because it's post validation then stability st udies and then filing in the market and all that. So this may take one more year to -- for that kind of things to start, only the products where the -- no further bioequivalences are to be done and where v straight away your U.S. dossiers can be filed in Europe and various other markets. So that process is going on. Right now, a few produ cts are already filed, which approvals are yet pending. Larger product range to extend to the other market is going to take another almost around 1 more year because it's all regulatory proc ess and what of data needs to be generated. But our initial calculations, where we were talking that on second year onwards, we should be able to get around INR200 crores kind of EBITDA margin. I think that will surpass in the current year itsel f. In first half of the current year, the EBITDA margin of Unichem is INR113.75 crores. All these improvements will keep on coming in the , the approvals are received and all that. So the process is going on. And sir, last one, if I may. How is our own US business shaping up now since we have the plant clearances? Have you launched any products? And how is the uptake in those products? I think overall, we have spen t almost around -- up to September around INR 30 crores worth of goods to US, But most of the goods had reached to t hem at the end of the period, I think they are highly out of that almost -- which is INR1 crores, INR 1.5 crores sales has happened and these were all in stock. And now sales will start r eflecting from the third quarter onwards. So technically, it's not eliminated in consolidation p ractically in the power. So nothing major has IPCA Laboratories Limited November 14, 2024 Okay. So probably at the absolute EBITDA level, more or less the same because lower top line Sir, for the Unichem business in terms of synergies , where are we in terms of achieving those synergies? What have you already re alized in this results in the last couple of we have spoken about many synergies part. As far as your Unichem sourcing product from us, work is still goi ng on. That portion has not started, which our APIs, which they are currently buying from outside. And I think May, it may take around 5, 6 months. So in current year, practically nothing of that nat ure will happen. We also talked about most around 6 products, we have reduced overall their manufacturing cost and v alidations are over. Now all these 6 products, the improvements are almost around somewh ere between the 25% to 30% reduction ing approval and that will start. Fixed product increment is already done and the balance is in pip eline already. And as far as the procurements are concerned, a lot of benefit has al ready come as buying are now shaken up by benefits are there in terms of lower your pricing, that As far as market extensions are come, there are a l ot of work are in pipeline and we said that it time because it's post validation then stability st udies and then for that kind of things to no further bioequivalences are to be done and where v er straight away your U.S. dossiers can be filed in Europe and various other markets. So that process is going on. Right now, a few produ cts are already filed, which approvals are take another almost around 1 more year because it's all regulatory proc ess and what of data needs to be generated. But our initial calculations, where we were talking that on second year onwards, we should be I think that will surpass in the current year itsel f. In first half of the current year, the EBITDA All these improvements will keep on coming in the US business shaping up now since we have the plant clearances? Have you launched any products? And how is the uptake in those products? 30 crores worth of goods to US, But most of the goods had reached to t hem at the end of the period, I think they 1.5 crores sales has happened and these were all in stock. And now sales will start r eflecting from the third quarter onwards. So technically, it's not eliminated in consolidation p ractically in the power. So nothing major has happened. We already sent the year, we will launch around

And this is U.S. sales will be recognizing in our P &L directly or will recognize through Bayshore? A.K. Jain No, we have Unichem. Because in order to have entire synergies that U.S. business will be done entirely under one umbrella. So we think Unichem is very big ger business. All these business is already transferred to Unichem. And ent ire business will also be done through Unichem. So there are no duplication of the old mar keting and administrative and all those kind of setup. It will be all done through Unichem.

The next question is from the line of Dharmil from Dalmus Capital Management LLP.

Congratulations on really good set of numbers.

Mr. Dharmil, may I request you to please speak up. Your voice is coming out as muffled.

Is this clearer now?

Yes. Please proceed with your question.

My questions are again on Unichem. Earlier in the p revious calls, you had given in balance of around INR 2,000 crores revenue. So while in H1, we have all p articipants and somewhere around INR 900 crores. So is the guidance still on the plan? O r I mean, where are we up to on the guidance? Is this still achievable for FY '25? A.K. Jain I think overall business of Unichem may remain arou nd crores in the curren

Got it. And EBITDA margins. A.K. Jain EBITDA margins, let's say, first quarter was almost around 12.52%. Second quarter, it has improved to 14.35% Overall, I think it will remain 14% to 15% for the remaining period.

Got it. And 11% revenue growth in the current quart er for Unichem, can you break it down into how much was it volume driven and how much was price driven? And in general, what is the pricing scenario for... A.K. Jain Pricing-wise, if you see that there is kind of price declines are there. So overall, like I said, U.S. business has grown by almost around 12%, 12.5%. There is some decline in Brazil and overall contract manufacturing business has don consolidated sales, it's almost around 9.4% improve ment is there in current. And taking into the other operating income and others including, it 's around 11% kind of overall growt there in the further quarter. IPCA Laboratories Limited November happened. We already sent the se produces and another 3 are in pipeline. So I thi nk current year, we will launch around -- almost around 6 products. And this is U.S. sales will be recognizing in our P &L directly or will recognize through No, we have said that Bayshore entity, wherever business is the re, that was transferred to the Unichem. Because in order to have entire synergies that U.S. business will be done entirely under one umbrella. So we think Unichem is very big ger business. All these business is already transferred to Unichem. And ent ire business will also be done through Unichem. So there are no duplication of the old mar keting and administrative and all those kind of setup. It will be all done through Unichem. The next question is from the line of Dharmil from Dalmus Capital Management LLP. Congratulations on really good set of numbers. Mr. Dharmil, may I request you to please speak up. Your voice is coming out as muffled. clearer now? Yes. Please proceed with your question. My questions are again on Unichem. Earlier in the p revious calls, you had given in balance of 2,000 crores revenue. So while in H1, we have all p articipants and somewhere 900 crores. So is the guidance still on the plan? O r I mean, where are we up to on the guidance? Is this still achievable for FY '25? I think overall business of Unichem may remain arou nd INR1,850 to INR crores in the curren t financial year. Yes. Got it. And EBITDA margins. EBITDA margins, let's say, first quarter was almost around 12.52%. Second quarter, it has improved to 14.35% Overall, I think it will remain 14% to 15% for the remaining period. Got it. And 11% revenue growth in the current quart er for Unichem, can you break it down into how much was it volume driven and how much was price driven? And in general, what is the pricing scenario for... wise, if you see that there is a margin decline is there, so pricing is hardly kind of price declines are there. So overall, like I said, U.S. business has grown by almost around 12%, 12.5%. There is some decline in Brazil and overall contract manufacturing business has don e well. So overall, for the second quarter, if you look at the overall consolidated sales, it's almost around 9.4% improve ment is there in current. And taking into the other operating income and others including, it 's around 11% kind of overall growt there in the further quarter. IPCA Laboratories Limited November 14, 2024 se produces and another 3 are in pipeline. So I thi nk current And this is U.S. sales will be recognizing in our P &L directly or will recognize through said that Bayshore entity, wherever business is the re, that was transferred to the Unichem. Because in order to have entire synergies that U.S. business will be done entirely under one umbrella. So we think Unichem is very big ger business. All these -- the Bayshore's business is already transferred to Unichem. And ent ire business will also be done through Unichem. So there are no duplication of the old mar keting and administrative and all those The next question is from the line of Dharmil from Dalmus Capital Management LLP. Mr. Dharmil, may I request you to please speak up. Your voice is coming out as muffled. My questions are again on Unichem. Earlier in the p revious calls, you had given in balance of 2,000 crores revenue. So while in H1, we have all p articipants and somewhere 900 crores. So is the guidance still on the plan? O r I mean, where are we up to on INR 1,900 INR1,900 EBITDA margins, let's say, first quarter was almost around 12.52%. Second quarter, it has improved to 14.35% Overall, I think it will remain 14% to 15% for the remaining period. Got it. And 11% revenue growth in the current quart er for Unichem, can you break it down into how much was it volume driven and how much was price driven? And in general, what is a margin decline is there, so pricing is hardly -- 1%, 1.5% kind of price declines are there. So overall, like I said, U.S. business has grown by almost around 12%, 12.5%. There is some decline in Brazil and overall contract manufacturing e well. So overall, for the second quarter, if you look at the overall -- on consolidated sales, it's almost around 9.4% improve ment is there in current. And taking into the other operating income and others including, it 's around 11% kind of overall growt h is

Understood. And what would be the current capacity utilization in Unichem? And how do you expect it to ramp up over the next 2 to 3 years? A.K. Jain Let's say, overall, Unit 1 and having good capacity utilizations, maybe around the 70% to 80% kind of utilizations out there. Unit 2 Goa, this is a bigger unit and larger capaci ty. That's, I think, hardly around 20% kind of utilizations are there. Unichem's product in various markets and filings and all that. With that, the capacities of Goa plant will be util ized. So as far as the Ghaziabad plant is concerned, as far as the Bambi pl So those capacities European approvals and Australia and New Zealand. S o there are so many markets, they have approvals.

Understood. And are there Unichem? Are there any pipeline of products to be launched in next 1 or 2 years? A.K. Jain I think we will continue to launch around 4 to 5 products every yea

Okay. And this would be entirely formulations only? A.K. Jain Yes, formulations yes.

Okay. And what could be your revenue guidance for FY '26 and '27 for Unichem? A.K. Jain So far, we have not burned it out. So we will let y ou know in financial year.

The next question is from the line of Surya Narayan Patra from PhillipCapital India Private Limited.

Sir, my first question about the U.S. business. Fir st of all, can you give us some the Piparia unit Bayshore Unichem with us, so in the way it has alre ady been indicated that US business is going to happen through So wh ile we are seeing a kind of a strong export growth number for Unichem, but export growth has been muted consistently. So how s hould one think about the U.S. business going ahead for the U.S. business, compliance of Piparia and the growth in the U.S. side. A.K. Jain All plants, we already received the approvals and a lso there is no pending issue as far as Piparia plant is concerned. So all plant. So there are absolutely no outstanding issues anywhere.

Okay. All the 3 units are cleared now. IPCA Laboratories Limited November Understood. And what would be the current capacity utilization in Unichem? And how do you expect it to ramp up over the next 2 to 3 years? Let's say, overall, Unit 1 and -- Unit 1 at Goa and I think Ghaziabad, both these plants are having good capacity utilizations, maybe around the 70% to 80% kind of utilizations out there. Unit 2 Goa, this is a bigger unit and larger capaci ty. That's, I think, hardly around 20% kind of utilizations are there. So as the U.S. business and other businesses are extendin g the market of Unichem's product in various markets and filings and all that. With that, the capacities of Goa plant will be util ized. So as far as the Ghaziabad plant is concerned, as far as the Bambi pl ant is concerned, that utilization is almost around 30%, 35%. So those capacities -- and that plant is having all other approvals also, all the ROW market, European approvals and Australia and New Zealand. S o there are so many markets, they have Understood. And are there -- I mean, what is the trend in terms of product appro vals in Unichem? Are there any pipeline of products to be launched in next 1 or 2 years? I think we will continue to launch around 4 to 5 products every yea r. Okay. And this would be entirely formulations only? Yes, formulations yes. Okay. And what could be your revenue guidance for FY '26 and '27 for Unichem? So far, we have not burned it out. So we will let y ou know in the last quarter of the current financial year. The next question is from the line of Surya Narayan Patra from PhillipCapital India Private Sir, my first question about the U.S. business. Fir st of all, can you give us some the Piparia unit -- USA compliance? That is one. And secondly, after th e integration of the Bayshore Unichem with us, so in the way it has alre ady been indicated that US business is going to happen through -- everything through Unichem. ile we are seeing a kind of a strong export growth number for Unichem, but export growth has been muted consistently. So how s hould one think about the U.S. business going ahead for IPCA impacting the growth numbers? And that would be the question a the U.S. business, compliance of Piparia and the growth in the U.S. side. All plants, we already received the approvals and a lso there is no pending issue as far as Piparia plant is concerned. So all IPCA plants are cleared already, which includes Piparia plant. So there are absolutely no outstanding issues anywhere. Okay. All the 3 units are cleared now. IPCA Laboratories Limited November 14, 2024 Understood. And what would be the current capacity utilization in Unichem? And how do you Ghaziabad, both these plants are having good capacity utilizations, maybe around the 70% to 80% kind of utilizations out there. Unit 2 Goa, this is a bigger unit and larger capaci ty. That's, I think, hardly around 20% kind of the U.S. business and other businesses are extendin g the market of With that, the capacities of Goa plant will be util ized. So as far as the Ghaziabad plant is ant is concerned, that utilization is almost around 30%, 35%. and that plant is having all other approvals also, all the ROW market, European approvals and Australia and New Zealand. S o there are so many markets, they have I mean, what is the trend in terms of product appro vals in Unichem? Are there any pipeline of products to be launched in next 1 or 2 years? Okay. And what could be your revenue guidance for FY '26 and '27 for Unichem? the last quarter of the current The next question is from the line of Surya Narayan Patra from PhillipCapital India Private Sir, my first question about the U.S. business. Fir st of all, can you give us some update about USA compliance? That is one. And secondly, after th e integration of the Bayshore Unichem with us, so in the way it has alre ady been indicated that US business is ile we are seeing a kind of a strong export growth number for Unichem, but IPCA's export growth has been muted consistently. So how s hould one think about the U.S. business impacting the growth numbers? And that would be the question a bout All plants, we already received the approvals and a lso there is no pending issue as far as plants are cleared already, which includes Piparia A.K. Jain Yes, all 3 units are clear simultaneously, yes.

Okay. Regards to Unichem, and in terms of the performance so far, wh at we have seen in the recent quarters, Unichem is doing well, but our growth numbers are o n the export side still the remaining muted. O n the formulation side, can you just clarify what is really impacting here for us? A.K. Jain As far as the branded formulation business is conce rned, we have muted growth. In fact, in the first half of the current year, we have minus 2% gr owth on branded f largely because of all these currency fluctuations. And I think ruble from 80 level has gone to almost around more than 95. So that has reflected a nd a good amount of business comes from that market, so Russia and all. So that has a little impacted. I think from third quarter, I th ink in ROW market, we expect around 12% to 13% kind of growth. So all of the year, the business growth in ROW will revive and is likely to be around 7% to 8% kind of growth for the whole of the year ROW market, branded formulations business. As far as your generic businesses are concerned, by and large, let's say, first European business is concerned, except UK, that bus iness is good and we have reasonably good growth aro growth. UK, there are certain concerns are coming o n pricing and all and overstocking in that market. So probably this year, the UK business grow th will remain muted only or there m not be any growth in that market. So that's the fut ure. As far as Canada business is concerned, that business will have around 10% kind of growth. Australia and New Zealand in the first half was, be cause of some supply kind of constrain on APIs or cert ain APIs, and that has impacted the business. So th at we expect the recovery because those shipments have started coming from ou tsourced API. So there will be recovery in those markets. As far as overall South Africa is concerned, we will see some kind of there because some tenders are lost there, and that business will have some kind of decline. So overall, we see a generic business Generic business will also have a similar kind of g rowth. Distr better growth this year because last year, the avai lability of injectables because of plant upgradations and installations of some additional m achines and renovation part. So that half of the year, that plant was not o businesses. So overall generics, we will see around 12% kind of growth for the financial year.

Sir, this the institutional business this quarter, bump of what we are witnessing, it i off thing? It is sustainable. A.K. Jain No, no, no. Last year in this period, injectables were not available.

Okay. So now this is a kind of sustainable business and can see ramp up? A.K. Jain Yes, yes. IPCA Laboratories Limited November Yes, all 3 units are clear simultaneously, yes. Okay. Regards to the US business, since now everything is going to b e routed through Unichem, and in terms of the performance so far, wh at we have seen in the recent quarters, Unichem is doing well, but our growth numbers are o n the export side still the remaining n the formulation side, can you just clarify what is really impacting here for us? As far as the branded formulation business is conce rned, we have muted growth. In fact, in the first half of the current year, we have minus 2% gr owth on branded f ormulations. So that is largely because of all these currency fluctuations. And I think ruble from 80 level has gone to almost around more than 95. So that has reflected a nd a good amount of business comes from that market, so Russia and all. a little impacted. I think from third quarter, I th ink in ROW market, we expect around 12% to 13% kind of growth. So all of the year, the business growth in ROW will revive and is likely to be around 7% to 8% kind of growth for the whole of the year ROW market, branded formulations business. As far as your generic businesses are concerned, by and large, let's say, first European business is concerned, except UK, that bus iness is good and we have reasonably good growth aro und -- we should have almost for the whole of the year, ar ound 10% kind of growth. UK, there are certain concerns are coming o n pricing and all and overstocking in that market. So probably this year, the UK business grow th will remain muted only or there m not be any growth in that market. So that's the fut ure. As far as Canada business is concerned, that business will have around 10% kind of growth. Australia and New Zealand in the first half was, be cause of some supply kind of constrain on ain APIs, and that has impacted the business. So th at we expect the recovery because those shipments have started coming from ou tsourced API. So there will be recovery in those markets. As far as overall South Africa is concerned, we will see some kind of there because some tenders are lost there, and that business will have some kind of decline. So overall, we see a generic business -- your branded business to grow by around 8% to 9%. Generic business will also have a similar kind of g rowth. Distr ibutional business will have a better growth this year because last year, the avai lability of injectables because of plant upgradations and installations of some additional m achines and renovation part. So that half of the year, that plant was not o perating. So this year, there will be better growth in those businesses. So overall generics, we will see around 12% kind of growth for the financial year. Sir, this the institutional business this quarter, bump of what we are witnessing, it i off thing? It is sustainable. No, no, no. Last year in this period, injectables were not available. Okay. So now this is a kind of sustainable business and can see ramp up? IPCA Laboratories Limited November 14, 2024 the US business, since now everything is going to b e routed through Unichem, and in terms of the performance so far, wh at we have seen in the recent quarters, Unichem is doing well, but our growth numbers are o n the export side still the remaining n the formulation side, can you just clarify what is really impacting here for us? As far as the branded formulation business is conce rned, we have muted growth. In fact, in the ormulations. So that is largely because of all these currency fluctuations. And I think ruble from 80 level has gone to almost around more than 95. So that has reflected a nd a good amount of business comes from a little impacted. I think from third quarter, I th ink in ROW market, we expect around 12% to 13% kind of growth. So all of the year, the business growth in ROW will revive and is likely to be around 7% to 8% kind of growth for the whole of the year so as far as this As far as your generic businesses are concerned, by and large, let's say, first -- as far as the European business is concerned, except UK, that bus iness is good and we have reasonably we should have almost for the whole of the year, ar ound 10% kind of growth. UK, there are certain concerns are coming o n pricing and all and overstocking in that market. So probably this year, the UK business grow th will remain muted only or there m ay not be any growth in that market. So that's the fut ure. As far as Canada business is concerned, Australia and New Zealand in the first half was, be cause of some supply kind of constrain on ain APIs, and that has impacted the business. So th at we expect the recovery because those shipments have started coming from ou tsourced API. So there will be recovery in those markets. As far as overall South Africa is concerned, we will see some kind of decline there because some tenders are lost there, and that business will have some kind of decline. your branded business to grow by around 8% to 9%. ibutional business will have a better growth this year because last year, the avai lability of injectables because of plant upgradations and installations of some additional m achines and renovation part. So that -- for perating. So this year, there will be better growth in those businesses. So overall generics, we will see around 12% kind of growth for the financial year. Sir, this the institutional business this quarter, bump of what we are witnessing, it i s not a one-

Okay. Sir, in r so how do you think about your A.K. Jain Overall, Unichem R&D, let's say, we were doing some work on biotech that's completely stopped. They will co will also do. So the list will be some products, we will keep on developing, some will keep on developing. Some products where synerg ies are better in terms of our API basket, we will continue to develop. So both the teams will work on process development.

In fact, in the current quarter, you are seeing a significant lower number for Unichem and other expenses which generally captures R&D. So hence, th at is why I What is the kind of savings that we are seeing, whe ther it is from the reduced R&D spend on the Unichem side or it is something else? A.K. Jain R&D spend of base is almost around 3% overall, the 3% to 4%, 3%, 3.5% will continue there. And Overall, R&D spend is also around 3% of the turnover for the company, Unichem put together, consolidated number. So more or less, it will remain. Once our biotech plant is commissioned, which may happen during the, I think, in th financial year. Thereafter, once we start producing the batches and then clinical work then the next financial year, the overall R&D cost may go up to around 4.5%, 4.25% here.

The next question is from the line of Aru

I hope you are hearing me well?

Yes, Mr. Arun. Proceed with your question.

See, I just wanted just a few short questions and p robably short answers as well. See, the PAT comparison, can you do sort of a ballpark figure as versus international? Because the revenue split as almost 50 the percentage of domestic PAT and what is the perc entage of international PAT, profit after tax? A.K. Jain Normally, if you loo levels. And if you look at gross margins of compared to India market. We have India business, India formulation business. Then comes the business which we do in Europe, Aust ralia, New Zealand and Canada. Gross margin, thereafter, I think South Africa are lower and U.K. also, gross margins are lower. And last comes is the API. So have domestic formulation. And we have good overall margins in Generics also.

Sir, regarding the domestic formulations, in fact, I was referring to only the last quarter's performance, rated. Don't you think that there is overall depend ence on one product? Or is it company planning to also develop some products which could probably give a balance? IPCA Laboratories Limited November Okay. Sir, in r egards to R&D. So now after the integration of the U S business with Unichem, so how do you think about your IPCA's R&D versus Unichem R&D? Overall, Unichem R&D, let's say, we were doing some work on biotech that's completely stopped. They will co ntinue to do work on formulation development for U.S. market and will also do. So the list will be some products, we will keep on developing, some will keep on developing. Some products where synerg ies are better in terms of our API basket, we will continue to develop. So both the teams will work on process development. In fact, in the current quarter, you are seeing a significant lower number for Unichem and other expenses which generally captures R&D. So hence, th at is why I wanted to have some clarity. What is the kind of savings that we are seeing, whe ther it is from the reduced R&D spend on the Unichem side or it is something else? R&D spend of base is almost around 3% overall, the 3% to 4%, 3%, 3.5% will continue there. And Overall, R&D spend is also around 3% of the turnover for the company, Unichem put together, consolidated number. So more or less, it will remain. Once our biotech plant is commissioned, which may happen during the, I think, in th e end of the current financial year. Thereafter, once we start producing the batches and then clinical work then the next financial year, the overall R&D cost may go up to around 4.5%, 4.25% here. The next question is from the line of Aru n from FPL. I hope you are hearing me well? Yes, Mr. Arun. Proceed with your question. See, I just wanted just a few short questions and p robably short answers as well. See, the PAT comparison, can you do sort of a ballpark figure as to how do we compare with domestic versus international? Because the revenue split as almost 50 -50. Regarding the PAT, what is the percentage of domestic PAT and what is the perc entage of international PAT, profit after Normally, if you loo k at -- we don't divide that way, but we monitor the overal l gross margin levels. And if you look at gross margins of -- we had better gross margins in ROW market compared to India market. We have -- the next business line is from -- gross margin India business, India formulation business. Then comes the business which we do in Europe, Aust ralia, New Zealand and Canada. Gross margin, thereafter, I think South Africa are lower and U.K. also, gross margins are lower. And last comes is the API. So overall, we have highest gross margin or ROW brande d. Next is we have domestic formulation. And we have good overall margins in Generics also. Sir, regarding the domestic formulations, in fact, I was referring to only the last quarter's then your 52% comes from anti-inflammatories or NSAIDs, which is presumably rated. Don't you think that there is overall depend ence on one product? Or is it company planning to also develop some products which could probably give a balance? IPCA Laboratories Limited November 14, 2024 S business with Unichem, Overall, Unichem R&D, let's say, we were doing some work on biotech that's completely ntinue to do work on formulation development for U.S. market and IPCA will also do. So the list will be some products, we will keep on developing, some -- Unichem will keep on developing. Some products where synerg ies are better in terms of our API basket, we will continue to develop. So both the teams will work on process development. In fact, in the current quarter, you are seeing a significant lower number for Unichem and other wanted to have some clarity. What is the kind of savings that we are seeing, whe ther it is from the reduced R&D spend on R&D spend of base is almost around 3% overall, the 3% to 4%, 3%, 3.5% will continue to be there. And Overall, R&D spend is also around 3% of the turnover for the company, IPCA and Unichem put together, consolidated number. So more or less, it will remain. Once our biotech e end of the current financial year. Thereafter, once we start producing the batches and then clinical work -- and then the next financial year, the overall R&D cost may go up to around 4.5%, 4.25% here. See, I just wanted just a few short questions and p robably short answers as well. See, the PAT to how do we compare with domestic 50. Regarding the PAT, what is the percentage of domestic PAT and what is the perc entage of international PAT, profit after we don't divide that way, but we monitor the overal l gross margin we had better gross margins in ROW market gross margin -wise is the Then comes the business which we do in Europe, Aust ralia, New Zealand and Canada. Gross margin, thereafter, I think South Africa are lower and U.K. also, gross margins are lower. And overall, we have highest gross margin or ROW brande d. Next is we have domestic formulation. And we have good overall margins in Generics also. Sir, regarding the domestic formulations, in fact, I was referring to only the last quarter's inflammatories or NSAIDs, which is presumably rated. Don't you think that there is overall depend ence on one product? Or is it -- is the company planning to also develop some products which could probably give a balance? A.K. Jain Let's say, pain management constitute of management. So pain management has 2 segments. One is rheumatoid arthritis and osteoarthritis. And rheumatoid arthritis consists o f a large number of products. And have disease-modifying agents that are marketed. They are more chronic than even cardiovasculars, bu t they are classified as acute. And rheumatoid arthritis, we have very strong leadership. We have more than 60% market share. In every product we management group. So it's not overdependent. Every product has leadership in your segment where we have a good number of products marketing for rheumatoid arthritis. As far as your osteo brand is there. And there, which is like a brand which is for etodolac and other drugs and some all marketing brand name of Pacimol and there are other brands ar e there. So significant market share. So it's not only one prod uct which has confronted. Zerodol is not the only product in pain management. So, it's completely

Just one more question if you can allow me. Have th e revenues of the value to the exclusivity started churning? Does it come into the have approvals of lamotrigine, etodolac, alendronat Have these molecules started maybe in the near future? A.K. Jain Some of those molecules, Unichem is already marketing in U.S.

Okay. Yes. A.K. Jain Etodolac is IPCA be, I think we always shipped 3 products and another 3 are in pipeline. So last will be etodolac.

The next question is from the line of Nirali Sh

I just have 2 quick questions. First one is that on the launches. So we have been planning to launch almost around 6 therapies are we trying to flavor on the how it will contribute our top line, any numbers, any word about number? And if not that, the market size of these products. So any thing meaningful op portunity and data on this would be helpful.

Yes, as Mr. Jain has already explained, 3 products, we have already shipped to Unichem and it has landed in U.S. So whatever primary sales we hav e done, it got knocked off in consolidation because gestation period between the time we shipped to U.S . and those products started getting marketed. So by the end of the current financial year, we should be launching about 6 products in th e U.S. market. That is what is our target. And whenever we were there in these products in IPCA Laboratories Limited November Let's say, pain management constitute of -- it's not NSAID only, it's completely pain management. So pain management has 2 segments. One is rheumatoid arthritis and osteoarthritis. And rheumatoid arthritis consists o f a large number of products. And modifying agents that are marketed. They are more chronic than even cardiovasculars, bu t they are classified as acute. And rheumatoid arthritis, we have very strong leadership. We have more than 60% market share. In every product we market, we have market leadership. So that is also clubbed with pain management group. So it's not overdependent. Every product has leadership in your segment where we have a good number of products marketing for rheumatoid arthritis. As far as your osteo arthritis and those segments are concerned, yes, Ze rodol is brand is there. And -- but apart from that also, we have a good number of other brands are there, which is like a brand which is for etodolac and other drugs and some all marketing brand name of Pacimol and there are other brands ar e there. So -- and they also have a significant market share. So it's not only one prod uct which has confronted. Zerodol is not the only product in pain management. So, it's completely -- risk is divided here. Just one more question if you can allow me. Have th e revenues of the value to the exclusivity started churning? Does it come into the IPCA or it -- does it go to the Unichem? Because we have approvals of lamotrigine, etodolac, alendronat e, risperidone and levocetirizine and all. Have these molecules started -- generics started yielding revenue? Or will it come maybe in the near future? Some of those molecules, Unichem is already marketing in U.S. IPCA products and that will be launched, I think maybe e nd of the year. So it may be, I think we always shipped 3 products and another 3 are in pipeline. So last will be etodolac. The next question is from the line of Nirali Sh ah from Ashoka Stock Broking I just have 2 quick questions. First one is that on the launches. So we have been planning to launch almost around 6 -- 5 to 6 products in FY '25. So if any color on these products, what therapies are we trying to target or geographies are we trying to target? If y ou could give some flavor on the how it will contribute our top line, any numbers, any word about number? And if not that, the market size of these products. So any thing meaningful -- or any meaningful portunity and data on this would be helpful. Yes, as Mr. Jain has already explained, 3 products, we have already shipped to Unichem and it has landed in U.S. So whatever primary sales we hav e done, it got knocked off in consolidation because that product is not moved to the market. So there w ill be always a gestation period between the time we shipped to U.S . and those products started getting marketed. So by the end of the current financial year, we should be launching about 6 products e U.S. market. That is what is our target. And whenever we were there in these products in IPCA Laboratories Limited November 14, 2024 it's not NSAID only, it's completely pain management. So pain management has 2 segments. One is rheumatoid arthritis and osteoarthritis. And rheumatoid arthritis consists o f a large number of products. And there, we They are more chronic than even cardiovasculars, bu t they are classified as acute. And rheumatoid arthritis, we have very strong leadershi p. We have more than 60% market share. In market, we have market leadership. So that is also clubbed with pain management group. So it's not overdependent. Every product has leadership in your segment where we have a good number of products marketing for rheumatoid arthritis. arthritis and those segments are concerned, yes, Ze rodol is -- the flagship but apart from that also, we have a good number of other brands are there, which is like a brand which is for etodolac and other drugs and some all marketing in the and they also have a significant market share. So it's not only one prod uct which has confronted. Zerodol is not the Just one more question if you can allow me. Have th e revenues of the value to the exclusivity does it go to the Unichem? Because we e, risperidone and levocetirizine and all. generics started yielding revenue? Or will it come -- reflect products and that will be launched, I think maybe e nd of the year. So it may be, I think we always shipped 3 products and another 3 are in pipeline. So last will be etodolac. Broking . I just have 2 quick questions. First one is that on the launches. So we have been planning to 5 to 6 products in FY '25. So if any color on these products, what target or geographies are we trying to target? If y ou could give some flavor on the how it will contribute our top line, any numbers, any word about number? And if or any meaningful Yes, as Mr. Jain has already explained, 3 products, we have already shipped to Unichem and it has landed in U.S. So whatever primary sales we hav e done, it got knocked off in that product is not moved to the market. So there w ill be always a gestation period between the time we shipped to U.S . and those products started getting marketed. So by the end of the current financial ye ar, we should be launching about 6 products e U.S. market. That is what is our target. And whenever we were there in these products in the earlier time, we used to have a very good marke t share. But gaining market share will take some time, but we are very confident these products will do well, as i

So what kind of market share are we targeting?

For example, in U.S., maybe 10 years back, in most of these products, my market shares were anywhere between, say, 20% and in one product it was 80%.

Okay. That is helpful. And for example, from a 2 ye ars perspective, we plan to launch around 13 to 15 products, so how are we planning now about that?

We will be shipping ship 6 products to Unichem US. Maybe identical number in the next financial year.

Okay. And...

Unichem itself also will be launching 5 to 6 of the ir new molecules in the U.S. market in the current financial year.

Understood. And my next question is what could be p ossible growth perspective? Which geography do we see to be contri buting the highest and followed by basically, my question is what could be our possible growth drivers in terms of geography?

Practically, IPCA IPCA products being sold in the U.S. market going forwar d in the next 3 to 5 years. Similarly, one more opportunity will come. We will be taking U nichem products in all other markets where earlier the Zealand, Canada, So Unichem will also benefit out o f that. So as an entity see a very good growth going forward in the generic formulation business.

Underst ood. Just a last one, if I can squeeze in. On the s upply chain issues. So are we still facing any disruptions that persisted in Australia and New Zealand?

Nothing as such. No issues. Problem was there in th e second half of the last financial non-availability of one material, which we already boug ht in the current financial year. And the business has already started. So as we speak, t here is no problem as far as material issues. There is no issue.

The next question is

On this U.S. business arrangement that the U.S. business or the by Unichem. Will there be any transfer pricing be t here where profitab ility given our stake in Unichem is around 70%. So how the economics basically work out for us when we sell our product through Unichem?

Kunal, if you recollect, whenever we were earlier t here in the U.S. market, it was only similar line, co rrect? Our products were marketed by other marketin g partners on a profit IPCA Laboratories Limited November the earlier time, we used to have a very good marke t share. But gaining market share will take some time, but we are very confident these products will do well, as i t was earlier doing. So what kind of market share are we targeting? For example, in U.S., maybe 10 years back, in most of these products, my market shares were anywhere between, say, 20% and in one product it was 80%. Okay. That is helpful. And for example, from a 2 ye ars perspective, we plan to launch around 13 to 15 products, so how are we planning now about that? We will be shipping ship 6 products to Unichem US. Maybe identical number in the next inancial year. Unichem itself also will be launching 5 to 6 of the ir new molecules in the U.S. market in the current financial year. Understood. And my next question is what could be p ossible growth drivers from a 3 perspective? Which geography do we see to be contri buting the highest and followed by basically, my question is what could be our possible growth drivers in terms of geography? IPCA sales in U.S. toda y is currently 0. So you will see a very good growt h in products being sold in the U.S. market going forwar d in the next 3 to 5 years. Similarly, one more opportunity will come. We will be taking U nichem products in all other markets where earlier the y were not marketing, like ROW market, whole of Eur ope, Australia, New Zealand, Canada, So Unichem will also benefit out o f that. So as an entity see a very good growth going forward in the generic formulation business. ood. Just a last one, if I can squeeze in. On the s upply chain issues. So are we still facing any disruptions that persisted in Australia and New Zealand? Nothing as such. No issues. Problem was there in th e second half of the last financial availability of one material, which we already boug ht in the current financial year. And the business has already started. So as we speak, t here is no problem as far as material issues. There is no issue. The next question is from the line of Kunal Dhamesha from Macquarie. On this U.S. business arrangement that the U.S. business or the IPCA U.S. product will be sold by Unichem. Will there be any transfer pricing be t here where IPCA will account for some ility given our stake in Unichem is around 70%. So how the economics basically work out for us when we sell our product through Unichem? Kunal, if you recollect, whenever we were earlier t here in the U.S. market, it was only similar rrect? Our products were marketed by other marketin g partners on a profit IPCA Laboratories Limited November 14, 2024 the earlier time, we used to have a very good marke t share. But gaining market share will take t was earlier doing. For example, in U.S., maybe 10 years back, in most of these products, my market shares were Okay. That is helpful. And for example, from a 2 ye ars perspective, we plan to launch around We will be shipping ship 6 products to Unichem US. Maybe identical number in the next Unichem itself also will be launching 5 to 6 of the ir new molecules in the U.S. market in the drivers from a 3 -year perspective? Which geography do we see to be contri buting the highest and followed by -- so basically, my question is what could be our possible growth drivers in terms of geography? y is currently 0. So you will see a very good growt h in products being sold in the U.S. market going forwar d in the next 3 to 5 years. Similarly, one more opportunity will come. We will be taking U nichem products in all other markets y were not marketing, like ROW market, whole of Eur ope, Australia, New Zealand, Canada, So Unichem will also benefit out o f that. So as an entity IPCA Group will ood. Just a last one, if I can squeeze in. On the s upply chain issues. So are we still Nothing as such. No issues. Problem was there in th e second half of the last financial year, availability of one material, which we already boug ht in the current financial year. And the business has already started. So as we speak, t here is no problem as far as material -related U.S. product will be sold will account for some ility given our stake in Unichem is around 70%. So how the economics basically work Kunal, if you recollect, whenever we were earlier t here in the U.S. market, it was only similar rrect? Our products were marketed by other marketin g partners on a profit -sharing arrangement. So similar way, Unichem operation will be done. So we will sell our products to Unichem US. There will be a margin in our sales. An d US level, there will be prof arrangement also, both. And most of these products are also backed by my own API, so there will be some benefit out of API manufacturing also.

Sure, sir. Understood. And on the generic business revenue, Jain sir told that the gro guidance of around 12%. Is that for the remaining part of the year? How should we think about it?

Yes, for the second half of the current financial y ear. But overall, including the first half and second half, the generic business should

Sir, for generic business, first half is only 2% growth, right? So then...

I understand because the shipment of remaining as a stock in Unichem on hand, it has got knocked off in the consolidated business. I'm talking here consolidated business, not stand

Correct. So probably business is that the way to understand? You would have signed maybe 1 quarter inventory.

Yes, yes, that is right, yes.

Okay, okay, okay. And sir, just one on the India bu siness. Wh India business. And after addition, how is the prod uctivity coming along for the India business in terms of sales force?

We currently have about 7,000 medical reps in the f ield. And whatever guidance we ha earlier, all the additional people are contributing in the same way what we initially thought. There is no issue absolutely. So they will become p roductive division years.

2 to 3 years.

Some divisi ons, productivity will be faster than the other div isions like cardiac and all. So as per our plan, everything is moving. There is no issue.

Okay. Got it. A.K. Jain And, Kunal, if you look at around 4.62 lakh for the first half of the curre 4.36 lakhs in the last financial year same. So over all, there is a good improvement in overall productivity in spite of addition of the people.

The next question is from the line of Zain from Dolat Capital.

Just wanted to ask a business for FY '25? IPCA Laboratories Limited November arrangement. So similar way, Unichem operation will be done. So we will sell our products to Unichem US. There will be a margin in our sales. An d US level, there will be prof arrangement also, both. And most of these products are also backed by my own API, so there will be some benefit out of API manufacturing also. Sure, sir. Understood. And on the generic business revenue, Jain sir told that the gro guidance of around 12%. Is that for the remaining part of the year? How should we think about Yes, for the second half of the current financial y ear. But overall, including the first half and second half, the generic business should grow anywhere between 10% to 12%. Sir, for generic business, first half is only 2% growth, right? So then... I understand because the shipment of IPCA did to Unichem US. So because it was still remaining as a stock in Unichem on hand, it has got knocked off in the consolidated business. I'm talking here consolidated business, not stand -alone. Correct. So probably INR30 crores -- or INR60 crores additional, and then there is a base business is that the way to understand? You would have signed maybe 1 quarter inventory. Yes, yes, that is right, yes. Okay, okay, okay. And sir, just one on the India bu siness. Wh at's the current sales force in the India business. And after addition, how is the prod uctivity coming along for the India business in terms of sales force? We currently have about 7,000 medical reps in the f ield. And whatever guidance we ha earlier, all the additional people are contributing in the same way what we initially thought. There is no issue absolutely. So they will become p roductive division -wise between 2 to 3 ons, productivity will be faster than the other div isions like cardiac and all. So as per our plan, everything is moving. There is no issue. And, Kunal, if you look at around 4.62 lakh for the first half of the curre nt year compared to 4.36 lakhs in the last financial year same. So over all, there is a good improvement in overall productivity in spite of addition of the people. The next question is from the line of Zain from Dolat Capital. to ask a question against institutional business, can you repeat the guidance for the business for FY '25? IPCA Laboratories Limited November 14, 2024 arrangement. So similar way, Unichem operation will be done. So we will sell our products to Unichem US. There will be a margin in our sales. An d US level, there will be prof it sharing arrangement also, both. And most of these products are also backed by my own API, so there Sure, sir. Understood. And on the generic business revenue, Jain sir told that the gro wth guidance of around 12%. Is that for the remaining part of the year? How should we think about Yes, for the second half of the current financial y ear. But overall, including the first half and grow anywhere between 10% to 12%. did to Unichem US. So because it was still remaining as a stock in Unichem on hand, it has got knocked off in the consolidated business. additional, and then there is a base business is that the way to understand? You would have signed maybe 1 quarter inventory. at's the current sales force in the India business. And after addition, how is the prod uctivity coming along for the India business We currently have about 7,000 medical reps in the f ield. And whatever guidance we ha d given earlier, all the additional people are contributing in the same way what we initially thought. wise between 2 to 3 ons, productivity will be faster than the other div isions like cardiac and all. So as nt year compared to 4.36 lakhs in the last financial year same. So over all, there is a good improvement in overall question against institutional business, can you re peat the guidance for the

Which one? I think you're not

Am I audible now?

Yes, you are audible now.

So I was asking, sir, about institutional business guidance for FY '25.

See, we have earlier also explained this institutio nal business consists only of antimalarial formulations. So this business will fluctuate anywh ere between crores going forward. I'm talking annual business.

Okay. And sir, for India business guidance for '25?

So whatever guidance we gave in the beginning of th e year, anywhere between 11% to 12%, we stand by that. The

The next question is from the line of Tushar Manudh ane from Motilal Oswal Financial Services.

Sir, just with the earlier comment of the pecking o rder of the gross margin. So just a clarification, so even at th higher than domestic formulation?

Yes, yes. Even at EBITDA level.

Okay. Sir, secondly, with respect to relaunches of the products from Un ichem products basically, so it seems it's almost a bout now 8, 9 years. So the price erosion in the products which we are supposed to launch, li ke compared to what we were there in 2013, '14, what kind of price decline would have ha ppened in those products ones which we are going to relaunch?

We don't see any price decline in them.

So price decline there, there is no price difference.

Better than what it was when we were there in the market

Interesting. I mean, was it because that people hav e of reduced the competition? Or if you could throw some light?

In these products, we were having a very big marke prices increased. They have moderated, of course, s ubsequently. But still it is now better than what it was 10 years back.

Got you. So considering these launches and subseque ntly in FY '26. So specifically Unichem - specifically share. IPCA Laboratories Limited November Which one? I think you're not -- you're voice is breaking. Hello? Am I audible now? Yes, you are audible now. Yes. So I was asking, sir, about institutional business guidance for FY '25. See, we have earlier also explained this institutio nal business consists only of antimalarial formulations. So this business will fluctuate anywh ere between INR 300 crores to crores going forward. I'm talking annual business. Okay. And sir, for India business guidance for '25? So whatever guidance we gave in the beginning of th e year, anywhere between 11% to 12%, we stand by that. The re is no problem. The next question is from the line of Tushar Manudh ane from Motilal Oswal Financial Sir, just with the earlier comment of the pecking o rder of the gross margin. So just a clarification, so even at th e EBITDA margin level, would be ROW- branded generics would be higher than domestic formulation? Yes, yes. Even at EBITDA level. Okay. Sir, secondly, with respect to relaunches of the products from IPCA 's plant, excluding ichem products basically, so it seems it's almost a bout now 8, 9 years. So the price erosion in the products which we are supposed to launch, li ke compared to what we were there in 2013, '14, what kind of price decline would have ha ppened in those products ones which we are going to relaunch? We don't see any price decline in them. So price decline there, there is no price difference. Better than what it was when we were there in the market 10 years back. Interesting. I mean, was it because that people hav e -- I mean, the companies have exited, sort of reduced the competition? Or if you could throw some light? In these products, we were having a very big marke t share. The moment we went out, the prices increased. They have moderated, of course, s ubsequently. But still it is now better than what it was 10 years back. Got you. So considering these launches and subseque ntly in FY '26. So specifically Unichem specifically IPCA ex Unichem, what kind of U.S. sales one can expect in FY '26, if you can IPCA Laboratories Limited November 14, 2024 See, we have earlier also explained this institutio nal business consists only of antimalarial 300 crores to INR400 So whatever guidance we gave in the beginning of th e year, anywhere between 11% to 12%, The next question is from the line of Tushar Manudh ane from Motilal Oswal Financial Sir, just with the earlier comment of the pecking o rder of the gross margin. So just a branded generics would be 's plant, excluding ichem products basically, so it seems it's almost a bout now 8, 9 years. So the price erosion in the products which we are supposed to launch, li ke compared to what we were there in 2013, '14, what kind of price decline would have ha ppened in those products , specifically the I mean, the companies have exited, sort t share. The moment we went out, the prices increased. They have moderated, of course, s ubsequently. But still it is now better than Got you. So considering these launches and subseque ntly in FY '26. So specifically Unichem - ex Unichem, what kind of U.S. sales one can expect in FY '26, if you can

It is too early to give the combined sales of financial year. As we progress, maybe in the subseq uent con call, we will give the guidance. But whatever we said in the beginning of the year, our plan of launching 6 to 7 molecules in the U.S. in the current financia

And sir, lastly, on generics exports business, agai n. Like the first half numbers look lower. But in the base of second half FY '24 is also low. So t hat way then, will enough number because even if I go by the run rate of what we have done in 2Q, the growth will be really strong in second half FY '23.

I agree, but everything ultimately depends on what kind of market. See, the U.S. business, what we se e, the market share improvement will be gradual. So it is very difficult to comment how much market share we will get in the immediate financial year for the products which are already l aunched. So all that permutation combination and question marks are already there. That is why, we will do fair guidance in the latter half of the current financial year, maybe in the fourth quarter con call, what we are expecting in the next financial year as far as the U.S. business is concerned. Current year, our generic business shoul d be anywhere between 12% to 15%. That is what is the guidance.

Even sir -- even if you go by the generics exports for the curr ent quarter run rate when your U.S. product launches will b strong for second half of FY '22.

There are challenges. As Mr. Jain has already said in the South Africa, where we lost certain tender products and in the U.K. market. Considerin If the situation improves, we may do better than wh at we are committing. Because in the last year, second half, there was very good business fro m South Africa market. which looks today difficult.

The n ext question is from the line of Arun from FPL.

So just trying to understand the protocol, orange book for possible? Or is it being done...

It is possible. Earlier also, whatever products whi ch were approved in our name, they were getting marketed by other marketing partners. Every company does that, and it is the practice in the U.S. market.

In fact , I was thinking that products is the key. Correct?

Yes, yes. Manufacturing has to be from the site fro m where the product has got approval in the -- by US FDA. That is the only requi IPCA Laboratories Limited November It is too early to give the combined sales of IPCA plus Unichem as a group in the next financial year. As we progress, maybe in the subseq uent con call, we will give the guidance. But whatever we said in the beginning of the year, our plan of launching 6 to 7 molecules in the U.S. in the current financia l year, that is progressing as we anticipated. And sir, lastly, on generics exports business, agai n. Like the first half numbers look lower. But in the base of second half FY '24 is also low. So t hat way then, will -- 12% will be still a enough number because even if I go by the run rate of what we have done in 2Q, the growth will be really strong in second half FY '23. I agree, but everything ultimately depends on what kind of market. See, the U.S. business, e, the market share improvement will be gradual. So it is very difficult to comment how much market share we will get in the immediate -- in the second half of the current financial year for the products which are already l aunched. So all that permutation combination and question marks are already there. That is why, we will do fair guidance in the latter half of the current financial year, maybe in the fourth quarter con call, what we are expecting in the next financial year as far as the U.S. concerned. Current year, our generic business shoul d be anywhere between 12% to 15%. That is what is the guidance. even if you go by the generics exports for the curr ent quarter run rate when your U.S. product launches will b e additional over and above this, still the numbers look quite strong for second half of FY '22. There are challenges. As Mr. Jain has already said in the South Africa, where we lost certain tender products and in the U.K. market. Considerin g all that, we are giving a muted guidance. If the situation improves, we may do better than wh at we are committing. Because in the last year, second half, there was very good business fro m South Africa market. which looks today ext question is from the line of Arun from FPL. So just trying to understand the protocol, see, if a product that is approved by the FDA in the orange book for IPCA , still, it can be better for marketing and distrib ution by Unichem. Is it Or is it being done... It is possible. Earlier also, whatever products whi ch were approved in our name, they were getting marketed by other marketing partners. Every company does that, and it is the practice in the U.S. market. , I was thinking that products -- so that means only the manufacturing is the one, wh ich is the key. Correct? Yes, yes. Manufacturing has to be from the site fro m where the product has got approval in the by US FDA. That is the only requi rement. Marketing can be done by any other company. IPCA Laboratories Limited November 14, 2024 plus Unichem as a group in the next financial year. As we progress, maybe in the subseq uent con call, we will give the guidance. But whatever we said in the beginning of the year, our plan of launching 6 to 7 molecules in And sir, lastly, on generics exports business, agai n. Like the first half numbers look lower. But 12% will be still a good enough number because even if I go by the run rate of what we have done in 2Q, the growth I agree, but everything ultimately depends on what kind of market. See, the U.S. business, e, the market share improvement will be gradual. So it is very difficult to comment in the second half of the current financial year for the products which are already l aunched. So all that permutation That is why, we will do fair guidance in the latter half of the current financial year, maybe in the fourth quarter con call, what we are expecting in the next financial year as far as the U.S. concerned. Current year, our generic business shoul d be anywhere between 12% to even if you go by the generics exports for the curr ent quarter run rate when your e additional over and above this, still the numbers look quite There are challenges. As Mr. Jain has already said in the South Africa, where we lost certain g all that, we are giving a muted guidance. If the situation improves, we may do better than wh at we are committing. Because in the last year, second half, there was very good business fro m South Africa market. which looks today ee, if a product that is approved by the FDA in the , still, it can be better for marketing and distrib ution by Unichem. Is it It is possible. Earlier also, whatever products whi ch were approved in our name, they were getting marketed by other marketing partners. Every company does that, and it is the practice so that means only the manufacturing is the one, wh ich Yes, yes. Manufacturing has to be from the site fro m where the product has got approval in the rement. Marketing can be done by any other company.

As far as IPCA approvals, correct? The other...

Formulation facilities, Silvassa and Indore. And API facility, Ratl

Ratlam, okay. Is there any moves

Purely for domestic market. From Kandla, we also ca ter to all other markets other than U.S. Europe, Australia and all, we're catering from Kandla. It is a b

And we are satis

Yes, yes. We have nothing outstanding as far as US FDA matter is concerned.

The next question is from the line of Kunal Dhamesha from Macquari

Sir, just one clarification. You said that the mix business guidance would include our U.S. revenue, which we have supplied. But then doesn't t hat U.S. revenue will go through a subsidiary, which is Unichem?

Was, but ultimately, it will get consolidated in my account because Unichem also is my subsidiary.

Sir, but then like are guiding for 12%, and then we might end up our doi

That 2% growth was stand everybody will see consolidated business. For examp le, stand some sales from to reach the U.S. and it has not gone to customer. In the consolidated, it is knocked off. So consolidated is more important than stand better let us go by

Okay. So sir, would you helps us understand the businesses better? Because I think Europe is also now sizable business for us, right?

See, Kunal, what has happened, actually, the issue is confusion. We took over Unichem in the last financial year in the month of August. Anythin g we talk today is not comparable apple apple. Because last year, consolidation of Unichem started in our b say, from September. So last year, consolidation of Unichem was there only for 1 month and a few days. Whereas currently, it is there for all 6 months. So in the next financial year, the apple-to-apple comparison will become clear consolidated guidelines as far as the generic business is concerned.

In our consolidated top line growth guidance for this year is around 9%. Is that correct? A.K. Jain Yes. IPCA Laboratories Limited November IPCA is concerned, we have only Silvassa and Indore, whi ch have the U.S. approvals, correct? The other... Formulation facilities, Silvassa and Indore. And API facility, Ratl am. Ratlam, okay. Is there any moves to make Kandla, Dehradun , Sikkim and all? Purely for domestic market. From Kandla, we also ca ter to all other markets other than U.S. Europe, Australia and all, we're catering from Kandla. It is a b etter FM facility. And we are satis fying all the observations of US FDA, correct? Yes, yes. We have nothing outstanding as far as US FDA matter is concerned. The next question is from the line of Kunal Dhamesha from Macquari e. Sir, just one clarification. You said that the mix business guidance would include our U.S. revenue, which we have supplied. But then doesn't t hat U.S. revenue will go through a subsidiary, which is Unichem? ultimately, it will get consolidated in my account because Unichem also is my Sir, but then like -to-like there is a confusion, right? The generic business has grown at 2%. We are guiding for 12%, and then we might end up our doi ng double counting. That 2% growth was stand -alone IPCA , and guidance is for consolidated business. Ultima tely, everybody will see consolidated business. For examp le, stand -alone business, I have done some sales from IPCA through Unichem, wh ich is booked in my books. But that material just to reach the U.S. and it has not gone to customer. In the consolidated, it is knocked off. So consolidated is more important than stand -alone. So as far as generic business is concerned, better let us go by consolidated guidelines. Okay. So sir, would you -- at some point, will you change our segment reportin g so that it helps us understand the businesses better? Because I think Europe is also now sizable business See, Kunal, what has happened, actually, the issue is confusion. We took over Unichem in the last financial year in the month of August. Anythin g we talk today is not comparable apple apple. Because last year, consolidation of Unichem started in our b ooks only from the month, say, from September. So last year, consolidation of Unichem was there only for 1 month and a few days. Whereas currently, it is there for all 6 months. So in the next financial year, the apple comparison will become clear er, and we will be giving guidance market consolidated guidelines as far as the generic business is concerned. In our consolidated top line growth guidance for this year is around 9%. Is that correct? IPCA Laboratories Limited November 14, 2024 is concerned, we have only Silvassa and Indore, whi ch have the U.S. , Sikkim and all? Purely for domestic market. From Kandla, we also ca ter to all other markets other than U.S. etter FM facility. Yes, yes. We have nothing outstanding as far as US FDA matter is concerned. Sir, just one clarification. You said that the mix business guidance would include our U.S. revenue, which we have supplied. But then doesn't t hat U.S. revenue will go through a ultimately, it will get consolidated in my account because Unichem also is my like there is a confusion, right? The generic business has grown at 2%. We , and guidance is for consolidated business. Ultima tely, alone business, I have done ich is booked in my books. But that material just to reach the U.S. and it has not gone to customer. In the consolidated, it is knocked off. So alone. So as far as generic business is concerned, at some point, will you change our segment reportin g so that it helps us understand the businesses better? Because I think Europe is also now sizable business See, Kunal, what has happened, actually, the issue is confusion. We took over Unichem in the last financial year in the month of August. Anythin g we talk today is not comparable apple -to- ooks only from the month, say, from September. So last year, consolidation of Unichem was there only for 1 month and a few days. Whereas currently, it is there for all 6 months. So in the next financial year, the er, and we will be giving guidance market -wise In our consolidated top line growth guidance for this year is around 9%. Is that correct?

Yes.

All the business included.

Correct. Right.

The next question is from the line of Harshit Dhoot from Dymon Asia.

My next question is on the order expenses. We have the tender business, in which gross margin is directly still the data is a bit higher to see the way the b usiness is getting ramped out. So is it fair to assume that the 27% going forward?

See, again, I said consolidated numbers are not str ictly comparable because last year consolidation, Unichem numbers were there only for 1 month and few days. This year, it is for all 6 months. So financial year, everything will be comparable apple to in. For example, in the current financial year, 6 months, my other expenses also include enti re 6 in the last financial year, 6 months, it was only f or one month and a few days. So you can't compare that.

No, see, sequential basis also, right, in the ForEx losses. Sir, I just w expenses going forward. So I just wanted to underst and how this operating leverage benefit will play out as we are focusing a lot on this.

You can take whatever run rate of other ex quarter figures are there. More or less, it will co ntinue. Don't see anything about last financial year. Current financial year, first quarter, second quarter, other expenses are all except ional expenses in that, that will continue.

The next question is from the line of Kunal Randeria from Axis Capital.

Sir, the October IQVIA data for India showed that t he growth has slowed down to around 6%. So to your internal nu

No, we are growing as whatever we have projected an d all of the year, our growth will be anywhere between 11% to 12%.

Okay. All right. And just to kind of reconfirm, it' s a broad the European franchise?

No, nothing, nothing. When they were showing 15%, 1 6%, 20% growth also, we are growing around 11% and 12%.

The next question is from the line of Shiva from Purnartha Investment Advis IPCA Laboratories Limited November All the business included. Correct. Right. The next question is from the line of Harshit Dhoot from Dymon Asia. My next question is on the order expenses. We have the tender business, in which gross margin is directly playing to EBITDA. Our domestic productivity has increased a l ot. Then still the data is a bit higher to see the way the b usiness is getting ramped out. So is it fair to assume that the 27% -- I'm talking about a consol level, is 27% ot her expenses will continue going forward? See, again, I said consolidated numbers are not str ictly comparable because last year consolidation, Unichem numbers were there only for 1 month and few days. This year, it is for all 6 months. So that confusion will be there in the current financi al year. From the next financial year, everything will be comparable apple to in. For example, in the current financial year, 6 months, my other expenses also include enti re 6 -month expenses of Unichem. Wh in the last financial year, 6 months, it was only f or one month and a few days. So you can't compare that. No, see, sequential basis also, right, INR574 crores to INR637 crores. INR 637 crore in the ForEx losses. Sir, I just w ant to understand the generics for the SG&A for the se other expenses going forward. So I just wanted to underst and how this operating leverage benefit will play out as we are focusing a lot on this. You can take whatever run rate of other ex penses in the consolidated first quarter and second quarter figures are there. More or less, it will co ntinue. Don't see anything about last financial year. Current financial year, first quarter, second quarter, other expenses are all ional expenses in that, that will continue. The next question is from the line of Kunal Randeria from Axis Capital. Sir, the October IQVIA data for India showed that t he growth has slowed down to around 6%. So to your internal nu mber also shows a slowdown? No, we are growing as whatever we have projected an d all of the year, our growth will be anywhere between 11% to 12%. Okay. All right. And just to kind of reconfirm, it' s a broad -based growth, righ the European franchise? No, nothing, nothing. When they were showing 15%, 1 6%, 20% growth also, we are growing around 11% and 12%. The next question is from the line of Shiva from Purnartha Investment Advis o IPCA Laboratories Limited November 14, 2024 My next question is on the order expenses. We have the tender business, in which gross EBITDA. Our domestic productivity has increased a l ot. Then still the data is a bit higher to see the way the b usiness is getting ramped out. So is it fair to her expenses will continue See, again, I said consolidated numbers are not str ictly comparable because last year consolidation, Unichem numbers were there only for 1 month and few days. This year, it is for that confusion will be there in the current financi al year. From the next financial year, everything will be comparable apple to in. For example, in the current financial month expenses of Unichem. Wh ereas in the last financial year, 6 months, it was only f or one month and a few days. So you can't 637 crore s adjusted ant to understand the generics for the SG&A for the se other expenses going forward. So I just wanted to underst and how this operating leverage benefit penses in the consolidated first quarter and second quarter figures are there. More or less, it will co ntinue. Don't see anything about last financial year. Current financial year, first quarter, second quarter, other expenses are all -- there is no Sir, the October IQVIA data for India showed that t he growth has slowed down to around 6%. No, we are growing as whatever we have projected an d all of the year, our growth will be based growth, righ t, and not just at No, nothing, nothing. When they were showing 15%, 1 6%, 20% growth also, we are growing ors.

My first question is with respect to the U.S. thing . Earlier, when we were in 2013, 2014, '15. What was our total revenue in U.S. at that time? An d if you could split between what was the formulations and API? And what was the profitability at that t

Our total U.S. business at that time was around crores, INR 160 crores API business. And in both formulation an d API business, including the share of profit, we had a very good EBITDA margin.

Okay. So it was comparable to the ROE as well, the rest of the market was in the top.

Yes, yes, yes.

Okay, okay. Great. And the second is with respect t o your other businesses. Obviously, it's like somewhere around and you are seeing some progress. Over the last few quarters, it's been INR 80 crores subsidiaries revenue and earlier, it was slightly higher. If you could just throw some light what is your subsidiaries revenue? This is excluding Unichem.

Subsidiaries, one is Trophic Wellness, which is doi ng reasonably well around 10%, 12% top line growth and maybe 15% nutraceutical business. Then other subsidiary is On yx Scientific, which is into CRAMS business, and it is based out of U.K. There also th e business is steady. This year, they have a certain issue abo sustain their operation. Only subsidiary which is now not delivering, which going forward should do better is, Pisgah, which is out of U.S. They are also partly into CRAM S and partl manufacturing for the U.S. and other markets, where certain projects are going off. So these are our operating subsidiaries. Apart from that, we recently started marketing our own products in the U.K. market through our own subsidiar which are into business.

The next question is from the line o

Sir, just one question from my side. Sir, generic b usiness guidance, excluding Unichem is, for FY '25?

Excluding Unichem, So it will be around maybe 8% or so.

For the full year?

Yes, IPCA stand

Thank you very much. As there are no further questi ons, I would now like to hand the conference over to the IPCA Laboratories Limited November My first question is with respect to the U.S. thing . Earlier, when we were in 2013, 2014, '15. What was our total revenue in U.S. at that time? An d if you could split between what was the formulations and API? And what was the profitability at that t ime? Our total U.S. business at that time was around INR 400 crores, including about 160 crores API business. And in both formulation an d API business, including the share of profit, we had a very good EBITDA margin. Okay. So it was comparable to the ROE as well, the rest of the market was in the top. Yes, yes, yes. Okay, okay. Great. And the second is with respect t o your other businesses. Obviously, it's like somewhere around INR80 crores. Obviou sly, you said last time that you were working on th at and you are seeing some progress. Over the last few quarters, it's been INR 80 crores subsidiaries revenue and earlier, it was slightly higher. If you could just throw some light what is -- how is the progress over there? And going ahead, ho w do you look at your subsidiaries revenue? This is excluding Unichem. Subsidiaries, one is Trophic Wellness, which is doi ng reasonably well around 10%, 12% top line growth and maybe 15% , 20% bottom line growth. Trophic Wellness which is into nutraceutical business. Then other subsidiary is On yx Scientific, which is into CRAMS business, and it is based out of U.K. There also th e business is steady. This year, they have a certain issue abo ut discretionary spending coming down in the market . But still, they will sustain their operation. Only subsidiary which is now not delivering, which going forward should do better is, Pisgah, which is out of U.S. They are also partly into CRAM S and partl y into small manufacturing for the U.S. and other markets, where certain projects are going off. So these are our operating subsidiaries. Apart from that, we recently started marketing our own products in the U.K. market through our own subsidiar y, IPCA U.K. So these are major subsidiaries, which are into business. The next question is from the line o f Zain from Dolat Capital. Sir, just one question from my side. Sir, generic b usiness guidance, excluding Unichem is, for Excluding Unichem, So it will be around maybe 8% or so. For the full year? stand -alone. Thank you very much. As there are no further questi ons, I would now like to hand the conference over to the management for closing comments. IPCA Laboratories Limited November 14, 2024 My first question is with respect to the U.S. thing . Earlier, when we were in 2013, 2014, '15. What was our total revenue in U.S. at that time? An d if you could split between what was the 400 crores, including about INR150 160 crores API business. And in both formulation an d API business, including the Okay. So it was comparable to the ROE as well, the rest of the market was in the top. Okay, okay. Great. And the second is with respect t o your other businesses. Obviously, it's like sly, you said last time that you were working on th at INR 90 crores and 80 crores subsidiaries revenue and earlier, it was slightly higher. If you could just throw how is the progress over there? And going ahead, ho w do you look at Subsidiaries, one is Trophic Wellness, which is doi ng reasonably well around 10%, 12% top , 20% bottom line growth. Trophic Wellness which is into nutraceutical business. Then other subsidiary is On yx Scientific, which is into CRAMS business, and it is based out of U.K. There also th e business is steady. This year, they have a ut discretionary spending coming down in the market . But still, they will Only subsidiary which is now not delivering, which going forward should do better is, Pisgah, y into small -scale API manufacturing for the U.S. and other markets, where certain projects are going off. So these are our operating subsidiaries. Apart from that, we recently started marketing our own products U.K. So these are major subsidiaries, Sir, just one question from my side. Sir, generic b usiness guidance, excluding Unichem is, for Thank you very much. As there are no further questi ons, I would now like to hand the

No, nothing. Nothing from our side. If there are no further questions, I think we can close this con call. And thanks all the participants for atten ding this con call organized by DAM Capital. Thank you all.

Sure, sir. Thank you so much. On behalf of DAM Capi tal Advisors Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Thank you all. IPCA Laboratories Limited November No, nothing. Nothing from our side. If there are no further questions, I think we can close this con call. And thanks all the participants for atten ding this con call organized by DAM Capital. Thank you all. Sure, sir. Thank you so much. On behalf of DAM Capi tal Advisors Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you all. IPCA Laboratories Limited November 14, 2024 No, nothing. Nothing from our side. If there are no further questions, I think we can close this con call. And thanks all the participants for atten ding this con call organized by DAM Capital. Sure, sir. Thank you so much. On behalf of DAM Capi tal Advisors Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.