Thanks, Nitin, and DAM Capital Advisors for organizi ng this call, and welcome to all participants. Today's earning call and discussions a nd answer given may include some forward-looking statements based on our current business ex pectation. This must be vie conjunction with risks that pharmaceutical business faces. Our actual financial performance may differ from You may use your own judgment on information given during the call. Our domestic business for Q4 has deliver delivered around 12% business growth. Mid- March '25, Ipca is ranked at the 16th as pe IQVIA a s fastest top 20 players. Ipca continued to improve its marke t improved our market share by around 9 basis points to almost around 2. mid-March '24. Both on acute and chronic segment, we had delivered better growth compared to the market. As per IQVIA, overa 13.2%. On acute segment, the market growth was 6.9% . Ipca delivered around 10.9%. On chronic, market growth was around 9.8%. Our growth is tracked by IQVIA as 17.9% overall. Compared to up. The market gets around 61% from acute and in ca se of chronic, it is 39%. For Ipca, it's around 66% for acute and 34% for chronic. Market is not identifying rheumatoid arth chronic segment, but this is more chronic than any other segment because it's all disease modifying agents, which are to be taken for life. B ut if you include that, then our chronic segment contribution would be much higher. Ipca Laboratories L Ladies and gentlemen, good day, and welcome to Ipca Labs Q4 FY '25 Earnings Conference osted by DAM Capital Advisors. 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 assistance during the co nference call, please si gnal an operator by pressing star then zero on a touchtone phone. Please note that this conference is being I now hand the conference over to Mr. Nitin Agarwal from DAM Capital Advisors. Thank you, and over to you, sir. Yusuf. Hi, good afternoon, everyone, and a very warm we lcome to Ipca Laboratories Q4 F '25 Earnings Call, hosted by DAM Capital Advisors Limited. On the call today representing Ipca management, we've got Mr. A .K. Jain, Managing Director; and Mr. math, Corporate Counsel and Company Secretary. I will hand over the call to Mr. Jain to make the o pening comments, and we will open the floor for questions. Mr. Jain, please go ahead, sir. Thanks, Nitin, and DAM Capital Advisors for organiz ing this call, and welcome to all participants. Today's earning call and discussions and answer given may include some looking statements based on our current business ex pectation. This must be vie conjunction with risks that pharmaceutical business faces. Our actual financial performance may differ from what is perceived or projected. You may use your own judgment on information given during the call. Our domestic business for Q4 has deliver ed a growth of around 11%. And overall, for the who le of the year, it has delivered around 12% business growth. March '25, Ipca is ranked at the 16th as pe IQVIA a s fastest -growing company among the top 20 players. Ipca continued to improve its marke t share. In last quarter of Q4 also, we have improved our market share by around 9 basis points to almost around 2. 07% from 1.8% in March '24. Both on acute and chronic segment, we had delivered better growth compared to the market. As per IQVIA, overa ll market growth was around 8%, Ipca delivered at a growth of around 13.2%. On acute segment, the market growth was 6.9% . Ipca delivered around 10.9%. On chronic, market growth was around 9.8%. Our growth is tracked by IQVIA as 17.9% overall. Compared to industry, our contribution of chronic segment is lo wer, but we are fast catching up. The market gets around 61% from acute and in ca se of chronic, it is 39%. For Ipca, it's around 66% for acute and 34% for chronic. Market is not identifying rheumatoid arth chronic segment, but this is more chronic than any other segment because it's all disease modifying agents, which are to be taken for life. B ut if you include that, then our chronic segment contribution would be much higher. Laboratories L imited May 30, 2025 Ladies and gentlemen, good day, and welcome to Ipca Labs Q4 FY '25 Earnings Conference 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 gnal an operator by Please note that this conference is being I now hand the conference over to Mr. Nitin Agarwal from DAM Capital Advisors. Thank f. Hi, good afternoon, everyone, and a very warm we lcome to Ipca Laboratories Q4 F '25 Earnings Call, hosted by DAM Capital Advisors Limited. On the call today representing Ipca management, we've got Mr. A .K. Jain, Managing Director; and Mr. I will hand over the call to Mr. Jain to make the o pening comments, and we will open the floor Thanks, Nitin, and DAM Capital Advisors for organiz ing this call, and welcome to all participants. Today's earning call and discussions and answer given may include some looking statements based on our current business ex pectation. This must be vie wed in conjunction with risks that pharmaceutical business faces. Our actual financial performance You may use your own judgment on information given during the call. Our domestic business ed a growth of around 11%. And overall, for the who le of the year, it has growing company among the share. In last quarter of Q4 also, we have 07% from 1.8% in Both on acute and chronic segment, we had delivered better growth compared to the market. ll market growth was around 8%, Ipca delivered at a growth of around 13.2%. On acute segment, the market growth was 6.9% . Ipca delivered around 10.9%. On chronic, market growth was around 9.8%. Our growth is tracked by IQVIA as 17.9% overall. industry, our contribution of chronic segment is lo wer, but we are fast catching up. The market gets around 61% from acute and in ca se of chronic, it is 39%. For Ipca, it's around 66% for acute and 34% for chronic. Market is not identifying rheumatoid arth ritis as a chronic segment, but this is more chronic than any other segment because it's all disease - modifying agents, which are to be taken for life. B ut if you include that, then our chronic You will recall tha has helped our company to get better share from met ro market. For market, let's say, from 2022 to 2025. The chronic 30 metro cities are giving a contribution of around around 32.66%, which has moved around a 34.19% in ' 25. So there is cities contribution to the market has gone up by 1.53%. But as far as Ipca is concerned, our market share i n '22 was around 32.65% for all 30 metro cities. It ha s now moved to around 37.52%. So there is a signifi cant increase of almost around 4.67% contribution, which is coming from metro. So that is helped by our overall metro city coverage, which post the reasons that we are also growing faster in the market. Our export formulation business around 10% for FY '25 from formulatio n business has delivered a growth of around 3%. Gen eric business delivered a growth of around 15% from And for full financial year, the business has grown to around crores. So there is a growth of around 7% in overall brande d business, which includes the institutional business. The lower growth for the financial year i n generic business is mainly due to decline in business in South Africa from around 74%, that's mainly on account of the loss of certain tenders in South African market. Our API business has delivered a growth of 2% for t he quarter whole of the financial current year, improved our margins trend. Overall, if you look at stand margins is at around 21.19% as against 18.5% in Q4 '24. There is an improvement of almost around 2.66% and absolute term your EBITDA margin has gone up from around INR 347 Stand- alone FY '25 EBITDA margins is around 22.66% as aga inst 19.29% for FY '24. There's an improvement of almost around INR1,189 crores 27%. Consolidated EBITDA margins for Q4 is at around 18. 24% as against 14.98% in Q4 FY '24. There is again improvement of almost around 3.26%. And overall EBITDA has gone from INR 305 crores to EBITDA margin for FY '25 is at around 18.94% as aga inst 16.72% in FY '24, an improvement of around 2.22%. And overall EBITDA margins has gon e up from INR1,693 crores 31%. And we have delivered better margins as against the guidelines given for the year. Our overall guidance for the year was around 18% ki nd of consolidated EBITDA margin as against that, we have delivered around 18.94% overa ll. Our subsidiary Unic Ipca Laboratories L You will recall tha t post-COVID, we have increased our coverage to the metro cities, and that has helped our company to get better share from met ro market. For market, let's say, from 2022 to 2025. The chronic 30 metro cities are giving a contribution of around around 32.66%, which has moved around a 34.19% in ' 25. So there is an cities contribution to the market has gone up by 1.53%. But as far as Ipca is concerned, our market share i n '22 was around 32.65% for all 30 metro s now moved to around 37.52%. So there is a signifi cant increase of almost around 4.67% contribution, which is coming from metro. So that is helped by our overall metro city coverage, which post -COVID, we have changed that and that has given us -- the reasons that we are also growing faster in the market. Our export formulation business -- the branded formulation business has delivered a gr owth of around 10% for FY '25 from INR527 crores to around INR 582 crores. For Q4, branded n business has delivered a growth of around 3%. Gen eric business delivered a growth of around 15% from INR312 crores to around INR 357 crores for the quarter FY '25. And for full financial year, the business has grown to around INR 1,336 crores from So there is a growth of around 7% in overall brande d business, which includes the institutional business. The lower growth for the financial year i n generic business is mainly due to decline in business in South Africa from INR113 crores to around INR39 crores , a decline of almost around 74%, that's mainly on account of the loss of certain tenders in South African market. Our API business has delivered a growth of 2% for t he quarter -- for the Q4 2025. And for the whole of the financial year, there is just a 1% growth in the API business . So we have, in the current year, improved our margins trend. Overall, if you look at stand -alone Q4 EBITDA margins is at around 21.19% as against 18.5% in Q4 '24. There is an improvement of almost 2.66% and absolute term your EBITDA margin has gone up from 347 crores, an increase of almost around 24%. alone FY '25 EBITDA margins is around 22.66% as aga inst 19.29% for FY '24. There's an improvement of almost around 3.37%. And overall EBITDA margins has gone up from crores to around INR1,533 crores , and there is an overall increase of almost around Consolidated EBITDA margins for Q4 is at around 18. 24% as against 14.98% in Q4 FY '24. There is again improvement of almost around 3.26%. And overall EBITDA has gone from 305 crores to INR 410 crores. There is an increase of almost around 3 5%. Consolidat EBITDA margin for FY '25 is at around 18.94% as aga inst 16.72% in FY '24, an improvement of around 2.22%. And overall EBITDA margins has gon e up from INR crores . There is an improvement of almost around -- an increase of almost a 31%. And we have delivered better margins as against the guidelines given for the year. Our overall guidance for the year was around 18% ki nd of consolidated EBITDA margin as against that, we have delivered around 18.94% overa ll. Our subsidiary Unic hem has delivered Laboratories L imited May 30, 2025 COVID, we have increased our coverage to the metro cities, and that has helped our company to get better share from met ro market. For market, let's say, from 2022 to 2025. The chronic 30 metro cities are giving a contribution of around -- in 2022, it was increase of metro But as far as Ipca is concerned, our market share i n '22 was around 32.65% for all 30 metro s now moved to around 37.52%. So there is a signifi cant increase of almost around 4.67% contribution, which is coming from metro. So that is helped by our overall metro city -- and that's one of the branded formulation business has delivered a gr owth of 582 crores. For Q4, branded n business has delivered a growth of around 3%. Gen eric business delivered a 357 crores for the quarter FY '25. 1,336 crores from INR1,248 So there is a growth of around 7% in overall brande d business, which includes the institutional business. The lower growth for the financial year i n generic business is mainly due to decline , a decline of almost around 74%, that's mainly on account of the loss of certain tenders in South African market. for the Q4 2025. And for the year, there is just a 1% growth in the API business . So we have, in the alone Q4 EBITDA margins is at around 21.19% as against 18.5% in Q4 '24. There is an improvement of almost 2.66% and absolute term your EBITDA margin has gone up from INR279 crores to alone FY '25 EBITDA margins is around 22.66% as aga inst 19.29% for FY '24. There's 3.37%. And overall EBITDA margins has gone up from , and there is an overall increase of almost around Consolidated EBITDA margins for Q4 is at around 18. 24% as against 14.98% in Q4 FY '24. There is again improvement of almost around 3.26%. And overall EBITDA has gone from 410 crores. There is an increase of almost around 3 5%. Consolidat ed EBITDA margin for FY '25 is at around 18.94% as aga inst 16.72% in FY '24, an improvement INR 1,288 crores to an increase of almost a round 31%. And we have delivered better margins as against the guidelines given for the year. Our overall guidance for the year was around 18% ki nd of consolidated EBITDA margin as hem has delivered a consolidated growth of around 18% from business, an improvement in EBITDA margin from crores . And in percentage term from 4.87% to around 12.55%. An d if you look at last 2 quarters, EBITDA margin, it was in the range of around 14% to 16%. With overall improvement in business as well as imp rovement in operational efficiencies, we could deliver the overall better EBITDA margins for Unichem. The guidanc e for next financial year around 8% to 10% in the FY '25 and we expect our EB ITDA margins to further improve by around 1% consolidated basis for the year. Having given the broad numbers, now I'll request participants to ask for questions.
IPCA Laboratories Limited analyst Q&A
Thank you very much. PhillipCapital.
Sir, my first question about the U.S. business potential, see have done. So now since we have integrated Unichem fully, so what is the U.S. revenue that we would have reported in the consolidated number f or that market? And also, if y some sense now since it is integrated, part of our U.S. business is getting routed through them also. So like -- in terms of the product that you would have added. So if you can give so U.S. sales that we have added this year because of our own U.S. number that we have seen for the group as a wh ole? And what is our outlook that we would be having for FY '26, sir
As far as Ipca is concerned, U.S. has not made any significant overall contribution to the overall generic business, I think we have stand worth around quarter, very small shipment has happened in the ea rlier quarters. So overall, and as transit time and all put together, I think on a consolidate d basis, it is just contributing around crores or INR So it has not contributed a significant business in the current financial year. We have just, I think, in last financial year, we have shipped arou nd the 3 products and fourth product was shipped in the month of March. And I think in curre nt year, we w 7 more products. So I think overall, the current year, I think overa ll U.S. business should contribute around INR100 crores for U.S. busines Ipca Laboratories L a consolidated growth of around 18% from INR1,785 crores to around INR 2,211 business, an improvement in EBITDA margin from INR87 crores to almost around . And in percentage term from 4.87% to around 12.55%. d if you look at last 2 quarters, EBITDA margin, it was in the range of around 14% to 16%. With overall improvement in business as well as imp rovement in operational efficiencies, we could deliver the overall better EBITDA margins for Unichem. e for next financial year -- current financial year is that we'll continue to gr ow around 8% to 10% in the FY '25 and we expect our EB ITDA margins to further improve by around 1% consolidated basis for the -- from 18.94% to around 20% for the current finan Having given the broad numbers, now I'll request participants to ask for questions. Thank you very much. First question is from the line of Surya Narayan Pa tra from PhillipCapital. Please go ahead. question about the U.S. business potential, see -- and U.S. business that we would have done. So now since we have integrated Unichem fully, so what is the U.S. revenue that we would have reported in the consolidated number f or that market? And also, if y some sense now since it is integrated, part of our U.S. business is getting routed through them in terms of the product -- new product introductions and the incremental busin ess that you would have added. So if you can give so me sense that, okay, what is the incremental U.S. sales that we have added this year because of our own product? And what is the overall U.S. number that we have seen for the group as a wh ole? And what is our outlook that we would be having for FY '26, sir ? As far as Ipca is concerned, U.S. has not made any significant overall contribution to the overall generic business, I think we have stand -alone basis, I think we have shipped goods worth around INR65 crores, but most of the shipment has happ en in the third and fourth quarter, very small shipment has happened in the ea rlier quarters. So overall, and as transit time and all put together, I think on a consolidate d basis, it is just contributing around INR 23 crores kind of business. So it has not contributed a significant business in the current financial year. We have just, I think, in last financial year, we have shipped arou nd the 3 products and fourth product was shipped in the month of March. And I think in curre nt year, we w ill be shipping almost around 7 more products. So I think overall, the current year, I think overa ll U.S. business should contribute around crores for us in the current financial year. That is what is our internal budgets are there for U.S. busines s for final sales in U.S. market. And as far as Uni chem is concerned, Unichem Laboratories L imited May 30, 2025 2,211 crores overall to almost around INR265 d if you look at last 2 quarters, EBITDA margin, it was in the range of around 14% to 16%. With overall improvement in business as well as imp rovement in operational efficiencies, we current financial year is that we'll continue to gr ow around 8% to 10% in the FY '25 and we expect our EB ITDA margins to further improve by from 18.94% to around 20% for the current finan cial Having given the broad numbers, now I'll request participants to ask for questions. First question is from the line of Surya Narayan Pa tra from and U.S. business that we would have done. So now since we have integrated Unichem fully, so what is the U.S. revenue that we would have reported in the consolidated number f or that market? And also, if y ou can give some sense now since it is integrated, part of our U.S. business is getting routed through them new product introductions and the incremental busin ess me sense that, okay, what is the incremental And what is the overall U.S. number that we have seen for the group as a wh ole? And what is our outlook that we As far as Ipca is concerned, U.S. has not made any significant overall contribution to the alone basis, I think we have shipped goods en in the third and fourth quarter, very small shipment has happened in the ea rlier quarters. So overall, and as transit time and all put together, I think on a consolidate d basis, it is just contributing around INR22 So it has not contributed a significant business in the current financial year. We have just, I think, in last financial year, we have shipped arou nd the 3 products and fourth product was ill be shipping almost around So I think overall, the current year, I think overa ll U.S. business should contribute around for us in the current financial year. That is what is our internal budgets are there s for final sales in U.S. market. And as far as Uni chem is concerned, Unichem had achieved a U.S. business of around previous financial year. So they have delivered overall growth of around 22% , but this also includes the business of Bayshore, which was earlier group with Ipca and now it is grouped with Unichem now. So around 22% growth they have delivered. And overall, Unichem has delivered a the financial year, a growth of almost around 19% i n the overall turnover. And I think including other income, it's around 18% overall delivered.
Sure, sir. Sir, just an extended poin integrated, our R&D also should have seen some kind of integration because at the time of acquisition itself that you have been talking about rationalizing the consolidated R&D spend by -- so -- what i witnessing. So going ahead, what would be your spend for the group as a whole or for let's say, on a consolidated level basis? And what R&D priorit ies that you would be having going a in terms of ANDAs in terms of APIs.
I think Ipca has already started filing. I think fi rst filing has been done in the month of April in current year. And I think in curr ent year, we should file almost around 6 to 7 prod ucts. And overall, we have capacity to develop almo st around 20 products, so which globally for India, ROW and all these other develop ed markets. So overall, that's the kind of development will happen. As far as R&D expenditures are concerned, we are at al currently around 3.25% as far as the Ipca concerned. And the stand And this also includes the biotech, and this expenditure is likely to be around 4% in the current financial year. And as far as Unichem is concerned, their b development cycle because initially, their focus wa s shifted towards overall let's say, market extensions and filings in the various markets of th eir existing product going on. And I think they will also b done is, whatever duplications was there, that has been avoided. But rest, Unichem team is independently doing their work and Ipca team is ind ependent. So nobody from Ipca, let's say, the sen ior management is, let's say, our operating managem ent of R&D of Ipca is not supervising the Unichem R&D. Unichem R&D is completely independent.
Okay. Just last 1 question from my side, sir. So in fact, the export growth generally is b our export was considered to be the growth engine f or Ipca some time back. But in the recent period that obviously we have seen impurity issue in a couple of products and initiated by the Euro And this year, FY '25 numbers are also kind of simi larly weak, so like how should one really think about it? The in the South African market. Is it because of the c ost issue about your overall export growth plans because that used to be the kind of a real driver for us. Ipca Laboratories L had achieved a U.S. business of around INR1,317 crores as against INR previous financial year. So they have delivered overall growth of around 22% , but this also includes the business of Bayshore, which was earlier group with Ipca and now it is grouped with Unichem now. So around 22% growth they have delivered. And overall, Unichem has delivered a the financial year, a growth of almost around 19% i n the overall turnover. And I think including other income, it's around 18% overall -- is the overall growth Unichem has Sure, sir. Sir, just an extended poin t on the U.S. business itself. So now since Unichem is integrated, our R&D also should have seen some kind of integration because at the time of acquisition itself that you have been talking about rationalizing the consolidated R&D spend what i s the kind of -- because there is no greater filing momentum that we are witnessing. So going ahead, what would be your spend for the group as a whole or for let's say, on a consolidated level basis? And what R&D priorit ies that you would be having going a in terms of ANDAs in terms of APIs. I think Ipca has already started filing. I think fi rst filing has been done in the month of April in current year. And I think in curr ent year, we should file almost around 6 to 7 ucts. And overall, we have capacity to develop almo st around 20 products, so which globally for India, ROW and all these other develop ed markets. So overall, that's the kind of development will happen. As far as R&D expenditures are concerned, we are at al currently around 3.25% as far as the Ipca concerned. And the stand -alone I'm talking. And this also includes the biotech, and this expenditure is likely to be around 4% in the current financial year. And as far as Unichem is concerned, their b usiness development, overall development cycle because initially, their focus wa s shifted towards overall let's say, market extensions and filings in the various markets of th eir existing product s. So that journey is And I think they will also b e filing around 3 to 4 products in current year. So what we have done is, whatever duplications was there, that has been avoided. But rest, Unichem team is independently doing their work and Ipca team is ind ependent. So nobody from Ipca, let's say, ior management is, let's say, our operating managem ent of R&D of Ipca is not supervising the Unichem R&D. Unichem R&D is completely independent. Okay. Just last 1 question from my side, sir. So in fact, the export growth generally is b our export was considered to be the growth engine f or Ipca some time back. But in the recent period that obviously we have seen -- they have faced challenges because of, let's say, t he impurity issue in a couple of products and initiated by the Euro pe. And this year, FY '25 numbers are also kind of simi larly weak, so like how should one really think about it? The -- and you also mentioned about a couple of this thing contract getting lost in the South African market. Is it because of the c ost issue or so could you give some sense about your overall export growth plans because that used to be the kind of a real driver for us. Laboratories L imited May 30, 2025 INR 1,077 crores in So they have delivered overall growth of around 22% , but this also includes the business of Bayshore, which was earlier group with Ipca and now it is grouped with Unichem now. So around 22% growth they have delivered. And overall, Unichem has delivered a -- for whole of the financial year, a growth of almost around 19% i n the overall turnover. And I think is the overall growth Unichem has t on the U.S. business itself. So now since Unichem is integrated, our R&D also should have seen some kind of integration because at the time of acquisition itself that you have been talking about rationalizing the consolidated R&D spend because there is no greater filing momentum that we are witnessing. So going ahead, what would be your spend for the group as a whole or for let's say, on a consolidated level basis? And what R&D priorit ies that you would be having going a head I think Ipca has already started filing. I think fi rst filing has been done in the -- I think, in the month of April in current year. And I think in curr ent year, we should file almost around 6 to 7 ucts. And overall, we have capacity to develop almo st around 20 products, so which globally for India, ROW and all these other develop ed markets. So overall, that's the kind of development will happen. As far as R&D expenditures are concerned, we are at al most around alone I'm talking. And this also includes the biotech, and this expenditure is likely to be around 4% in the current usiness development, overall development cycle because initially, their focus wa s shifted towards overall let's say, market s. So that journey is e filing around 3 to 4 products in current year. So what we have done is, whatever duplications was there, that has been avoided. But rest, Unichem team is independently doing their work and Ipca team is ind ependent. So nobody from Ipca, let's say, ior management is, let's say, our operating managem ent of R&D of Ipca is not Okay. Just last 1 question from my side, sir. So in fact, the export growth generally is b een -- our export was considered to be the growth engine f or Ipca some time back. But in the recent they have faced challenges because of, let's say, t he And this year, FY '25 numbers are also kind of simi larly weak, so like how should one really and you also mentioned about a couple of this thing contract getting lost or so could you give some sense about your overall export growth plans because that used to be the kind of a real driver for us.
And let's say, overall export formulation business will continue to have a growth of around 10% to 11% for us. And is gearing up and already as I talked that we shoul d be able to do almost around development of around 20 products in a year. So that is what is currently happening and I think the U.S. market and Europe market and all. Now a number of filings are all increasing now.
Surya Narayan Patra: Okay. But the guidance
showcasing any kind of synergy benefit of acquisiti on or the c It is a normalized growth possibly which we just maintained.
So Unichem's portfolio, I think, let's say, filings have started happening, but approvals will take some more time. So till the time those approva ls guidelines. So as and when those approvals will com e, we will start adding those products to our overall --
Is it more about non
Yes, it's a non
Next question is from the line of Damayanti Kerai from HSBC.
My question is again on export market. So if you ca n talk a bit more about performance in key markets like U.S., Australi And for these markets, specifically the bigger one, like on an overall basis, you mentioned 10% to 11%, but if you can also talk like how shoul d we look at growth in these bigger market in bo th generics and branded parts.
As far as the branded formulation business is conce rned, we have grown this year by around 10%. CIS, which is the large branded promotional ma rket, the growth is muted at around 2%. And for the current financia business. Apart from CIS market, all other markets have grown well in the branded generic business of ROW market. West Africa has grown by 34%. Latin America has gro wn by 17%. And Southeast Asia h grown by 24%. Only in case of Middle East, Africa, there is a degrowth of about 21%. It is a small market contributing around As far as the generic business is concerned, Europe has grown by 12% grown by 10%. And U.S. is a new market. Last year, there was no sale this year, the sale is around INR 65 crores. Australia and New Zealand, there is some inventory ra there is a degrowth of around 11% from INR268 crores Canada, there is hardly any growth, INR113 crores products, there is a degrowth of around 65%. So overall, generic business is flat Ipca Laboratories L And let's say, overall export formulation business will continue to have a growth of around 10% to 11% for us. And we are now the working on to say, expediting our fi lings I think R&D is gearing up and already as I talked that we shoul d be able to do almost around development of around 20 products in a year. So that is what is currently happening and I think the U.S. arket and Europe market and all. Now a number of filings are all increasing now. Okay. But the guidance -- growth guidance that you have mentioned 10%. So that is in no way showcasing any kind of synergy benefit of acquisiti on or the c ross-selling benefit or anything. It is a normalized growth possibly which we just maintained. So Unichem's portfolio, I think, let's say, filings have started happening, but approvals will take some more time. So till the time those approva ls comes, we are not including them in our guidelines. So as and when those approvals will com e, we will start adding those products to to our basket, yes. So that is taking some time. Is it more about non -U.S. market, sir? Yes, it's a non -U.S market. Yes. Next question is from the line of Damayanti Kerai from HSBC. My question is again on export market. So if you ca n talk a bit more about performance in key markets like U.S., Australi a and New Zealand, et cetera, as well as in some br anded market. And for these markets, specifically the bigger one, like on an overall basis, you mentioned 10% to 11%, but if you can also talk like how shoul d we look at growth in these bigger market th generics and branded parts. As far as the branded formulation business is conce rned, we have grown this year by around 10%. CIS, which is the large branded promotional ma rket, the growth is muted at around 2%. And for the current financia l year, we are guiding a growth of around 10% from the CIS business. Apart from CIS market, all other markets have grown well in the branded generic business of ROW market. West Africa has grown by 34%. Latin America has gro wn by 17%. And Southeast Asia h grown by 24%. Only in case of Middle East, Africa, there is a degrowth of about 21%. It is a small market contributing around INR70 crores. As far as the generic business is concerned, Europe has grown by 12% -- grown by 10%. And U.S. is a new market. Last year, there was no sale this year, the sale is 65 crores. Australia and New Zealand, there is some inventory ra there is a degrowth of around 11% from INR 301 crores, the market has come down to around crores . Canada, there is hardly any growth, INR 116 crores was last year. This year, it is around crores . And South Africa, Mr. Jain ha s already said, because of loss of certain tender products, there is a degrowth of around 65%. So overall, generic business is flat Laboratories L imited May 30, 2025 And let's say, overall export formulation business will continue to have a growth of around we are now the working on to say, expediting our fi lings I think R&D is gearing up and already as I talked that we shoul d be able to do almost around development of around 20 products in a year. So that is what is currently happening and I think the U.S. arket and Europe market and all. Now a number of filings are all increasing now. growth guidance that you have mentioned 10%. So that is in no way selling benefit or anything. So Unichem's portfolio, I think, let's say, filings have started happening, but approvals will comes, we are not including them in our guidelines. So as and when those approvals will com e, we will start adding those products to My question is again on export market. So if you ca n talk a bit more about performance in key a and New Zealand, et cetera, as well as in some br anded market. And for these markets, specifically the bigger one, like on an overall basis, you mentioned 10% to 11%, but if you can also talk like how shoul d we look at growth in these bigger market As far as the branded formulation business is conce rned, we have grown this year by around 10%. CIS, which is the large branded promotional ma rket, the growth is muted at around 2%. l year, we are guiding a growth of around 10% from the CIS business. Apart from CIS market, all other markets have grown well in the branded generic West Africa has grown by 34%. Latin America has gro wn by 17%. And Southeast Asia h as grown by 24%. Only in case of Middle East, Africa, there is a degrowth of about 21%. It is a sorry, Europe has grown by 10%. And U.S. is a new market. Last year, there was no sale this year, the sale is 65 crores. Australia and New Zealand, there is some inventory ra tionalization. So 301 crores, the market has come down to around 116 crores was last year. This year, it is around s already said, because of loss of certain tender products, there is a degrowth of around 65%. So overall, generic business is flat INR981 crores last year. This year also have grown to a So including institutional business, overall generi c business there is a growth of 7%. The total export business there is a growth of 8%. So 10% is promotional market, and generic market, including institutiona business, there is a growth of about 10%.
Okay. Sir, just a question, CIS, like why we saw a 2% growth? What has happened there?
It is mainly because of th INR 90, now it has come down to
Okay. Okay. And then my second question is...
Even though there i currency fluctuation.
Okay. So volumes were healthy, but because of this currency fluctuation on a reported basis...
That is right. Yes, yes.
Okay. That's helpful. My second question is if you can update on some of the newer projects, which Ipca was working on, so some new plants, et c etera, where work has been ongoing for last year or so. So if you can update on those.
Four of the manufacturing the current financial year, that include monoclonal antibody facility, which is coming up at Pithampur, Madhya Pradesh. So one intermediate API manufacturing fac Wardha near Nagpur. One new formulation facility for domestic market is coming up at Dewas. So these are the 3 manufacturing facilities that are coming up in Indi a, and 1 more greenfield manufacturing facilities being set up by Pisgah w facility will also start trial production in the current financial year. It will be injectable and ora l liquids.
So all the plants, they will start...
Trial produc tion will start in the current financial year.
Okay. And then scale up should be more visible in coming years, right? So this year mainly...
That is right. FY '27 and '28 onwards, you will see some scale up in the business.
Okay. And my last question is on Unichem, although like margins have moved up substantially. But when do we see it moving closer to the consolidated average because during, I guess, the deal, there was talk about cross Ipca Laboratories L last year. This year also INR981 crores, whereas institutional business from INR have grown to a round INR355 crores, a growth of around 33%. So including institutional business, overall generi c business there is a growth of 7%. The total export business there is a growth of 8%. So 10% is promotional market, and generic market, including institutiona l business, 7%. So overall, generic business, there is a formulation business, there is a growth of about 10%. Okay. Sir, just a question, CIS, like why we saw a 2% growth? What has happened there? It is mainly because of th is currency fluctuation because dollar versus ruble rate. So it crossed 90, now it has come down to INR 79. So we feel this year, the growth will be better. Okay. Okay. And then my second question is... Even though there i s a volume growth in the market. Value growth is on ly 2% because of the currency fluctuation. Okay. So volumes were healthy, but because of this currency fluctuation on a reported basis... That is right. Yes, yes. Okay. That's helpful. My second question is if you can update on some of the newer projects, which Ipca was working on, so some new plants, et c etera, where work has been ongoing for last year or so. So if you can update on those. Four of the manufacturing -- new manufacturing greenfield plant will start trial production in the current financial year, that include monoclonal antibody facility, which is coming up at Pithampur, Madhya Pradesh. So one intermediate API manufacturing fac Wardha near Nagpur. One new formulation facility for domestic market is coming up at Dewas. So these are the 3 manufacturing facilities that are coming up in Indi a, and 1 more greenfield manufacturing facilities being set up by Pisgah w hich is our step- down subsidiary in North Carolina. So that facility will also start trial production in the current financial year. It will be injectable and ora l So all the plants, they will start... tion will start in the current financial year. Okay. And then scale up should be more visible in coming years, right? So this year mainly... That is right. FY '27 and '28 onwards, you will see some scale up in the business. Okay. And my last question is on Unichem, although like margins have moved up substantially. But when do we see it moving closer to the consolidated average because during, I guess, the deal, there was talk about cross -market selling, et c etera. So I understand on the Laboratories L imited May 30, 2025 INR 267 crores, we So including institutional business, overall generi c business there is a growth of 7%. The total export business there is a growth of 8%. So 10% is promotional market, and generic market, l business, 7%. So overall, generic business, there is a formulation Okay. Sir, just a question, CIS, like why we saw a 2% growth? What has happened there? is currency fluctuation because dollar versus ruble rate. So it crossed 79. So we feel this year, the growth will be better. s a volume growth in the market. Value growth is on ly 2% because of the Okay. So volumes were healthy, but because of this currency fluctuation on a reported basis... Okay. That's helpful. My second question is if you can update on some of the newer projects, which Ipca was working on, so some new plants, et c etera, where work has been ongoing for new manufacturing greenfield plant will start trial production in the current financial year, that include monoclonal antibody facility, which is coming up at ility is coming at One new formulation facility for domestic market is coming up at Dewas. So these are the 3 manufacturing facilities that are coming up in Indi a, and 1 more greenfield manufacturing down subsidiary in North Carolina. So that facility will also start trial production in the cu rrent financial year. It will be injectable and ora l Okay. And then scale up should be more visible in coming years, right? So this year mainly... That is right. FY '27 and '28 onwards, you will see some scale up in the business. Okay. And my last question is on Unichem, although like margins have moved up substantially. But when do we see it moving closer to the consolidated average because during, etera. So I understand on the raw material also procurement part, a lot of synerg ies has been achieved, but what about other margin drivers for the Unichem portfolio.
No, no, whatever guidance we gave at the time of ac quisition of Unichem, m work in progress. Since it is a regulated business, everywhere, there are issues relating to those year application, registration, all those things ar e going on. The benefit of all this integration, what we spoke at the time of acquisition, current financial year onwards.
Okay. So '26 onwards, we should be seeing some more...
Yes, you will start seeing the benefit.
See we were talking around [ of its operation. And I think we already achieved a round INR264 crores overall in Unichem. That is without, let's say, not a single API of Ipc a is qualified as still in the Unichem because they are work in progress. And not a single product of Unich em has been approved in other markets. So all those synergies are yet to on continuously keep on improving.
Okay, sir. And as som onwards, we should be seeing a better pickup in the margins?
Yes.
Next question is from the line of Chintan Doshi, an individual investor.
Sir, I s ee a lot of activities are going at the Pithampur facility that has belonged to the Unichem laboratory, right? So as you already mentioned...
That is API facility.
Right. So can you give us a light like are we start or how it is like it is going to contribute f rom this year onwards? Or we are looking just the number will be going to contribute next year onwards?
It will be some next financial year onwards. will happen only in the next financial year.
Next question is from the line of Shiva from Purnartha Investment Advisors.
So my first question is with respect to the crores. If you could just throw some light on the b reakup of where we spend the amount and for the next year, what will be the total
Apart from routine maintenance level. I told you 4 projects are currently under implementation, which will start trial production in the current financial year. Ipca Laboratories L raw material also procurement part, a lot of synerg ies has been achieved, but what about other margin drivers for the Unichem portfolio. No, no, whatever guidance we gave at the time of ac quisition of Unichem, m work in progress. Since it is a regulated business, everywhere, there are issues relating to those year application, registration, all those things ar e going on. The benefit of all this integration, what we spoke at the time of acquisition, hopefully, we'll start yielding some benefit from t he current financial year onwards. Okay. So '26 onwards, we should be seeing some more... Yes, you will start seeing the benefit. See we were talking around [ INR300 crores kind of 24:07 ] EBITDA margins after 2 full year of its operation. And I think we already achieved a round INR264 crores overall in Unichem. That is without, let's say, not a single API of Ipc a is qualified as still in the Unichem because work in progress. And not a single product of Unich em has been approved in other markets. So all those synergies are yet to -- yet to be. But still, let's say, the margins will k eep on continuously keep on improving. Okay, sir. And as som e of these factors start delivering, as you mention ed, maybe this year onwards, we should be seeing a better pickup in the margins? Next question is from the line of Chintan Doshi, an individual investor. ee a lot of activities are going at the Pithampur facility that has belonged to the Unichem laboratory, right? So as you already mentioned... That is API facility. Right. So can you give us a light like are we -- like it is a start -- trial production is going to start or how it is like it is going to contribute f rom this year onwards? Or we are looking just the number will be going to contribute next year onwards? It will be some next financial year onwards. This year, trial production will start, but scale u p will happen only in the next financial year. Next question is from the line of Shiva from Purnartha Investment Advisors. So my first question is with respect to the capex. We've spent s omewhere about crores. If you could just throw some light on the b reakup of where we spend the amount and for the next year, what will be the total capex of our company. Apart from routine maintenance capex, which will be around INR25 0 crores, level. I told you 4 projects are currently under implementation, which will start trial production in the current financial year. Laboratories L imited May 30, 2025 raw material also procurement part, a lot of synerg ies has been achieved, but what about other No, no, whatever guidance we gave at the time of ac quisition of Unichem, m any things are work in progress. Since it is a regulated business, everywhere, there are issues relating to those year application, registration, all those things ar e going on. The benefit of all this integration, hopefully, we'll start yielding some benefit from t he ] EBITDA margins after 2 full year of its operation. And I think we already achieved a round INR264 crores overall in Unichem. That is without, let's say, not a single API of Ipc a is qualified as still in the Unichem because work in progress. And not a single product of Unich em has been approved in other yet to be. But still, let's say, the margins will k eep e of these factors start delivering, as you mention ed, maybe this year ee a lot of activities are going at the Pithampur facility that has belonged to the Unichem trial production is going to start or how it is like it is going to contribute f rom this year onwards? Or we are looking just This year, trial production will start, but scale u p omewhere about INR775 crores. If you could just throw some light on the b reakup of where we spend the amount and 0 crores, INR300 crores level. I told you 4 projects are currently under implementation, which will start trial production
Okay. And the breakup of what
So around $20 million is for the injectable and ora l liquid facility that is coming up at North Carolina, U.S. around at Dewas, another at Nagpur, plus monoclonal antibody facility anothe r around major capexs , which will get capitalized in the current financi al year, and all those facility will start trial production. In this financial y
Okay. So biosimilar one, you had something in Pithampur that is the same?
That is the same one, which we'll start trial production in the current financial year.
Okay. And you've given the overall guidance How are the Unichem and the stand mean, at the stand level?
Unichem current margin. So whatever guidance we gave at the time of acquisition of Unichem, they achieved that 1 year before our guidance. Hopefully, current year also, this should improve their EBITDA marg But whatever market where they are not present as of now, Austra lia and New Zealand, Europe, that work in progress , that benefit will come perhaps a year after next year. So dossiers are getting filed, it will get registered, then we will slowly start marketing their product.
Understood. And as of now that the Bayshore is only INR the INR 2,011 crores that they...
No, no, Bayshore is about 1st of October.
Okay. You said we had only
No, no, that is generic formulation through Unichem in the U.S. So from our side...
Unichem also use Bayshore's...
Bayshore, I don't manufacture anything for Bayshore other facilities, including from Bangladesh and all.
Okay. Okay. And with respect to the stand institution with respect to the funding issues that U.S. has cut down that for the next year? What kind of institutional growth are you looking at? Ipca Laboratories L Okay. And the breakup of what -- where we are spending in. So around $20 million is for the injectable and ora l liquid facility that is coming up at North Carolina, U.S. around INR 250 crores for a formulation facility for domestic market coming up at Dewas, another INR200 crores, INR250 crores for API and intermed iate facility coming up at Nagpur, plus monoclonal antibody facility anothe r around INR 250 crores. These are the , which will get capitalized in the current financi al year, and all those facility will start trial production. In this financial y ear, that is FY '26. Okay. So biosimilar one, you had something in Pithampur that is the same? That is the same one, which we'll start trial production in the current financial year. Okay. And you've given the overall guidance of 8% to 10% and EBITDA margin of 20%. How are the Unichem and the stand -alone breakup? Like if you could just throw some li ght? I mean, at the stand -alone level, how do you look at the growth and the margin at Unichem Unichem current ly around INR2,000 crores annual sales and around 14%, 15% EBITDA margin. So whatever guidance we gave at the time of acquisition of Unichem, they achieved that 1 year before our guidance. Hopefully, current year also, this should improve their EBITDA marg in by about 1% and about 8% to 10% growth in the top line. But whatever -- the synergy of our acquisition of Unichem, their pr oducts we are taking to the market where they are not present as of now, Austra lia and New Zealand, Europe, that work in , that benefit will come perhaps a year after next year. So dossiers are getting filed, it will get registered, then we will slowly start marketing their product. Understood. And as of now that the Bayshore is only INR 22 crores in Unichem's revenue 2,011 crores that they... No, no, Bayshore is about INR150 crores , you could say top line. Unichem acquired that fro m 1st of October. Okay. You said we had only INR22 crores of sales in U.S. No, no, that is Ipca. So we also post our -- yes, yes, facility clearance, we started marketing our generic formulation through Unichem in the U.S. So from our side... Unichem also use Bayshore's... Bayshore, I don't manufacture anything for Bayshore . Bayshore is acquiring products on from other facilities, including from Bangladesh and all. Okay. Okay. And with respect to the stand -alone, we had something about the institution with respect to the funding issues that U.S. has cut down . How are we looking at that for the next year? What kind of institutional growth are you looking at? Laboratories L imited May 30, 2025 So around $20 million is for the injectable and ora l liquid facility that is coming up at North 250 crores for a formulation facility for domestic market coming up iate facility coming up 250 crores. These are the , which will get capitalized in the current financi al year, and all those facility will That is the same one, which we'll start trial production in the current financial year. of 8% to 10% and EBITDA margin of 20%. alone breakup? Like if you could just throw some li ght? I alone level, how do you look at the growth and the margin at Unichem annual sales and around 14%, 15% EBITDA margin. So whatever guidance we gave at the time of acquisition of Unichem, they achieved that 1 year before our guidance. Hopefully, current year also, this should improve their the synergy of our acquisition of Unichem, their pr oducts we are taking to the market where they are not present as of now, Austra lia and New Zealand, Europe, that work in , that benefit will come perhaps a year after next year. So dossiers are getting filed, it 2 crores in Unichem's revenue in , you could say top line. Unichem acquired that fro m yes, yes, facility clearance, we started marketing our . Bayshore is acquiring products on from alone, we had something about the -- in the . How are we looking at
There is no exact clarity in that. Having said this , we are hoping we should grow that institutional business in the current financial yea r more because a year before our injectable line was undergoing some modernization and all, that is why the sales were less in FY '24. That is why you feel current year that is FY '25 growth is higher in the in should grow that business maybe around 8% to 10%.
Okay. And how do you look at the API things sizes w ise? Are there any stability that is coming? Or how do you look at your API, vo
API business and pricing was at peak during COVID t ime. From that time onwards, there is a consistent downward trend in the API pricing. So ev en though we have improved our volume compared to what we sold in the prices continuously coming down. But now there is a stability slowly, we feel it will start slightly improving from this level. So in the current financial year...
The volume growth will be the
That is correct. Yes. So FY '26, you will see volum e growth as well as price growth when it comes to the API business.
And how are you looking at it after like in the sec growth? Or you look gradually...
We are seeing some picking up in the market in the fourth quarter itself.
Okay. And the domestic one. So consistently, we've been doing share, and we've done quite good in the domestic ar ena. So you feel that will be wil l keep winning market share in [ domestic?
Next 3 to 4 years, we will That is what is our guidance.
Next question is from the line of Kunal Randeria from Axis Capital.
Sir, you have, I think, around 7,000 marketing reps in India. So which means the PCPM is just over 4 lakhs. So with your current portfolio, what do you think will be the optimum
See, now the business is growing around 12%. If man productivity also increased by 12%. But having said that, every year, we add in the normal circumstances, 400 to 500 people just to tak e care of increase in the medical practitioners and all. So that trend w much per man productivity because of our nature of products, what we market, anti where volumes are very high, value is very low. So that also has some impact on this per man productivity. Ipca Laboratories L There is no exact clarity in that. Having said this , we are hoping we should grow that institutional business in the current financial yea r also. That is FY '26. This year, the growth is more because a year before our injectable line was undergoing some modernization and all, that is why the sales were less in FY '24. That is why you feel current year that is FY '25 growth is higher in the in stitutional business. From that level also, we see this year also we should grow that business maybe around 8% to 10%. Okay. And how do you look at the API things sizes w ise? Are there any stability that is coming? Or how do you look at your API, vo lume and the price. API business and pricing was at peak during COVID t ime. From that time onwards, there is a consistent downward trend in the API pricing. So ev en though we have improved our volume compared to what we sold in -- during COV ID time, you don't see that in the value because of the prices continuously coming down. But now there is a stability slowly, we feel it will start slightly improving from this level. So in the current financial year... The volume growth will be the top line growth because there will be stability in the prices. That is correct. Yes. So FY '26, you will see volum e growth as well as price growth when it comes to the API business. And how are you looking at it after like in the sec ond half onwards, it will be a slightly higher growth? Or you look gradually... We are seeing some picking up in the market in the fourth quarter itself. Okay. And the domestic one. So consistently, we've been doing -- we've been gain share, and we've done quite good in the domestic ar ena. So you feel that will be l keep winning market share in [ inaudible 0:32:28] and how are you seeing the position in Next 3 to 4 years, we will beat the market growth, and we should grow 1.5x mar ket growth. That is what is our -- historically, we have done. And going forward 3, 4 years, that is our Next question is from the line of Kunal Randeria from Axis Capital. Sir, you have, I think, around 7,000 marketing reps in India. So which means the PCPM is just over 4 lakhs. So with your current portfolio, what do you think will be the optimum See, now the business is growing around 12%. If we don't add any PSR in the market, our per man productivity also increased by 12%. But having said that, every year, we add in the normal circumstances, 400 to 500 people just to tak e care of increase in the medical practitioners and all. So that trend w ill continue. So even though value- wise, you don't see much per man productivity because of our nature of products, what we market, anti where volumes are very high, value is very low. So that also has some impact on this per man Laboratories L imited May 30, 2025 There is no exact clarity in that. Having said this , we are hoping we should grow that also. That is FY '26. This year, the growth is more because a year before our injectable line was undergoing some modernization and all, that is why the sales were less in FY '24. That is why you feel current year that is FY '25 stitutional business. From that level also, we see this year also we Okay. And how do you look at the API things sizes w ise? Are there any stability that is API business and pricing was at peak during COVID t ime. From that time onwards, there is a consistent downward trend in the API pricing. So ev en though we have improved our volume ID time, you don't see that in the value because of the prices continuously coming down. But now there is a stability slowly, we feel it will start top line growth because there will be stability in the prices. That is correct. Yes. So FY '26, you will see volum e growth as well as price growth when it ond half onwards, it will be a slightly higher we've been gain ing market share, and we've done quite good in the domestic ar ena. So you feel that will be -- state -- you and how are you seeing the position in beat the market growth, and we should grow 1.5x mar ket growth. historically, we have done. And going forward 3, 4 years, that is our Sir, you have, I think, around 7,000 marketing reps in India. So which means the PCPM is just over 4 lakhs. So with your current portfolio, what do you think will be the optimum PCPM? we don't add any PSR in the market, our per man productivity also increased by 12%. But having said that, every year, we add in the normal circumstances, 400 to 500 people just to tak e care of increase in the medical wise, you don't see much per man productivity because of our nature of products, what we market, anti -malarial, where volumes are very high, value is very low. So that also has some impact on this per man
Sure, but there's still scope to increase at to get it to maybe 5 lakhs, 5.5 lakhs in 4 to 5 years?
So currently, it is around 4 lakh and 4.3 lakhs. It should grow around 8%, maybe compounding next 3 to 4 years. With the additi
Got it. So that will continue for the next 2 years. Got it. Sir, secondly, on the U.S. business, your -- I mean now that you are kind of ramping up your fil ings and everything, do you think realistically the ki crores, INR 400 crores business, excluding Unichem, your own business?
That is Ipca product, manufactured at Ipca India facility, correct?
Yes, sir.
So whatever figure we have given is possible. So 10 years back, we were doing about crores with only around 8 products. So we just star ted. Some products have reached U.S. another 5 to 6 products will get commercialized in the current is a pipeline for new product commercialization yea r after year. And we have also ramped up now development of products for the U.S. market.
Right. But just to clarify, your strategy has been to back it wi we have the DMF filing
Most of the filings are backed by my own APIs.
Next question is from the line of Dharmil Shah from Dalmus Capital Management.
I have more specific questions on Unichem. We've se en the fourth quarter results. Gross margin sharply declined from 64% in 3Q to 55%. Was there any one Or what was the reason for...
No, no, it is major
Okay. I mean, and any specific therapy that we shift
No, no, nothing like that, depending on market situ ation, market demand, market growth, plus minuses will happen products give slightly lower margin. So majorly, the impact is because of that. There is nothing one-off or anything in this.
In fact, fourth quarter, the contract manufa crores . So there, the margins are lower yes because mater ial cost is higher there. There is no marketing and other costs involved.
Understood. And on the guidance, you give 1 year gu idance of abo 1% improvement in EBIT margin. But once we assume t he synergies come in, in the next 2 to 3 years, geographical synergies or maybe API coming in from it. What do you expect the revenue growth and margins for Unichem 2 to 3 years f Ipca Laboratories L Sure, but there's still scope to increase at to get it to maybe 5 lakhs, 5.5 lakhs in 4 to 5 years? So currently, it is around 4 lakh and 4.3 lakhs. It should grow around 8%, maybe compounding next 3 to 4 years. With the additi on of around 400, 500 people. Got it. So that will continue for the next 2 years. Got it. Sir, secondly, on the U.S. business, I mean now that you are kind of ramping up your fil ings and everything, do you think realistically the ki nd of filings here in the next 3 to 4 years, this b usiness could be a 400 crores business, excluding Unichem, your own business? That is Ipca product, manufactured at Ipca India facility, correct? So whatever figure we have given is possible. So 10 years back, we were doing about crores with only around 8 products. So we just star ted. Some products have reached U.S. another 5 to 6 products will get commercialized in the current financial year. Thereafter, there is a pipeline for new product commercialization yea r after year. And we have also ramped up now development of products for the U.S. market. Right. But just to clarify, your strategy has been to back it wi th your own APIs. So wherever we have the DMF filing s, you use that DMF filing for [inaudible 0:35:27]. Most of the filings are backed by my own APIs. Next question is from the line of Dharmil Shah from Dalmus Capital Management. I have more specific questions on Unichem. We've se en the fourth quarter results. Gross margin sharply declined from 64% in 3Q to 55%. Was there any one -off in these 2 quarters? Or what was the reason for... No, no, it is major ly because of the product mix change. Okay. I mean, and any specific therapy that we shift -- tilted towards or... No, no, nothing like that, depending on market situ ation, market demand, market growth, plus minuses will happen in the therapies some therapies, some products give better margins. Some products give slightly lower margin. So majorly, the impact is because of that. There is nothing off or anything in this. In fact, fourth quarter, the contract manufa cturing has gone up from INR 58 . So there, the margins are lower yes because mater ial cost is higher there. There is no marketing and other costs involved. Understood. And on the guidance, you give 1 year gu idance of abo ut 10% revenue growth and 1% improvement in EBIT margin. But once we assume t he synergies come in, in the next 2 to 3 years, geographical synergies or maybe API coming in from it. What do you expect the revenue growth and margins for Unichem 2 to 3 years f rom now? Laboratories L imited May 30, 2025 Sure, but there's still scope to increase at to get it to maybe 5 lakhs, 5.5 lakhs in 4 to 5 years? So currently, it is around 4 lakh and 4.3 lakhs. It should grow around 8%, maybe compounding Got it. So that will continue for the next 2 years. Got it. Sir, secondly, on the U.S. business, I mean now that you are kind of ramping up your fil ings and everything, do you think nd of filings here in the next 3 to 4 years, this b usiness could be a INR300 So whatever figure we have given is possible. So 10 years back, we were doing about INR240 crores with only around 8 products. So we just star ted. Some products have reached U.S. financial year. Thereafter, there is a pipeline for new product commercialization yea r after year. And we have also ramped up th your own APIs. So wherever Next question is from the line of Dharmil Shah from Dalmus Capital Management. I have more specific questions on Unichem. We've se en the fourth quarter results. Gross off in these 2 quarters? No, no, nothing like that, depending on market situ ation, market demand, market growth, plus in the therapies some therapies, some products give better margins. Some products give slightly lower margin. So majorly, the impact is because of that. There is nothing 58 crores to INR90 . So there, the margins are lower yes because mater ial cost is higher there. There is no ut 10% revenue growth and 1% improvement in EBIT margin. But once we assume t he synergies come in, in the next 2 to 3 years, geographical synergies or maybe API coming in from it. What do you expect the
See, ideally, our intention, the margin should grow to around 18%, 18% to 20%. That is the maximum what we can achieve because they are into o nly generic business, and API business. I'm talking about Unichem.
Understoo d. Revenue growth over the next 2 to 3 years?
Around 10% to 12%. Only silver lining, they have a lot of capacity available to grow their business. So there is no need for any fresh investm ent in facility creation in the immediate future.
Understood. So what could be the utilization right now as on date?
So their major formulation facility, Goa, just last year commenced commercial production. So there, they can do a lot of production. There is a lot of capacity ava not a constraint for Unichem.
Understood. And lastly, I mean are there any effect s of U.S. tariffs on pharma, very broad question, but are you seeing any effects...
Whatever guidance we have given w will be definitely a variation in whatever guidance we have given.
Next question is from the line of Rashmi Shetty from Dolat Capital.
Couple of clarification. How much how much are you guiding for FY '26, the total number?
Currently is around
So FY '24 plus FY '25 put together INR 1,000 crores.
INR 1,000 crores. And how much of that we have already spent in '25?
Around INR 600 crores, we have already spent.
So INR 400 crores m
That is correct, yes.
Okay. And sir, in the API segment, what is the growth guidance for FY '26, sir?
Around 6%, 7%, Rashmi, not beyond that.
6% to 7%. And last one clarification, which I wante d. Earlier, you mentioned that institutional business plus generic business will give a growth o f around 7%. So in case of the generic business is growing flat for FY '26 also then your institu 24%, 25%, right? Ipca Laboratories L See, ideally, our intention, the margin should grow to around 18%, 18% to 20%. That is the maximum what we can achieve because they are into o nly generic business, and API business. I'm talking about Unichem. d. Revenue growth over the next 2 to 3 years? Around 10% to 12%. Only silver lining, they have a lot of capacity available to grow their business. So there is no need for any fresh investm ent in facility creation in the immediate Understood. So what could be the utilization right now as on date? So their major formulation facility, Goa, just last year commenced commercial production. So there, they can do a lot of production. There is a lot of capacity ava ilable there. So capacity is not a constraint for Unichem. Understood. And lastly, I mean are there any effect s of U.S. tariffs on pharma, very broad question, but are you seeing any effects... Whatever guidance we have given w ithout considering what you spoke. So if that comes, there will be definitely a variation in whatever guidance we have given. Next question is from the line of Rashmi Shetty from Dolat Capital. Couple of clarification. How much capex have we spent in total capex spend in FY '25? And how much are you guiding for FY '26, the total number? Currently is around INR400 crores. So FY '24 plus FY '25 put together -- sorry, FY '25 plus FY '26 put together, it will be around 1,000 crores. 1,000 crores. And how much of that we have already spent in '25? 600 crores, we have already spent. 400 crores m ore is expected to be in FY '26? That is correct, yes. Okay. And sir, in the API segment, what is the growth guidance for FY '26, sir? Around 6%, 7%, Rashmi, not beyond that. 6% to 7%. And last one clarification, which I wante d. Earlier, you mentioned that institutional business plus generic business will give a growth o f around 7%. So in case of the generic business is growing flat for FY '26 also then your institu tional business growth will be around 24%, 25%, right? Laboratories L imited May 30, 2025 See, ideally, our intention, the margin should grow to around 18%, 18% to 20%. That is the maximum what we can achieve because they are into o nly generic business, and API business. Around 10% to 12%. Only silver lining, they have a lot of capacity available to grow their business. So there is no need for any fresh investm ent in facility creation in the immediate So their major formulation facility, Goa, just last year commenced commercial production. So ilable there. So capacity is Understood. And lastly, I mean are there any effect s of U.S. tariffs on pharma, very broad ithout considering what you spoke. So if that comes , there spend in FY '25? And sorry, FY '25 plus FY '26 put together, it will be around Okay. And sir, in the API segment, what is the growth guidance for FY '26, sir? 6% to 7%. And last one clarification, which I wante d. Earlier, you mentioned that institutional business plus generic business will give a growth o f around 7%. So in case of the generic tional business growth will be around
No, no, no. FY '26, we are projecting a growth of 1 0% in the generic business, including institutional business, both put together.
Okay. So your generic...
The planned generic business or in the current financial year, excluding institutional business.
Got it. So your generic segment, excluding institut ional business will also grow around 8% to 10% and your institutional will also grow in that
Around that line, yes.
Next question is from the line of Tushar Manudhane from Motilal Oswal Financial Service.
Just on this product filings from Ipca side for U.S . market. So the one which you report for '26, these are like what refiling of the already approved product for U.S. market or...
No, no. They are fresh development, fresh filing Tushar.
Understood. So 67 new filing...
Everything got over in the
Got it. And sir, any particular reason you would li ke to highlight where the business with products being shipped but still taking longer is t he competition pressure so much that it's a little difficult to push our pr
It is nothing like that as and when the inquiry get s quoted, we do participate. But already, people are with somebody else in contract and all. So it will be a gradual progres U.S. generic business is concerned. Having said thi s, whatever benefit we have cost, other thing, own API that remain today also.
Understood. Understood. And just lastly, how many to b e added for FY '26?
Around 400.
Next question is from the line of Rahul Jeewani from IIFL Securities Limited.
Yes. Sir, this revenue guidance which you gave of 8 % to 10% for FY '26, Isn't that a bit conservative num 300, 400 basis points every year. And for the expor t businesses as well, we have generally indicated about a 10%, 11% kind of growth excluding the API business. So are we a bit con servative in terms of the overall revenue growth guidance for next year?
If you see our business segment and turnover, API g rows by 6%, 7%, and all formulation business, excluding India business grew by around 1 0% and India grows by around 1 overall growth will be 8% to 10% only. Ipca Laboratories L No, no, no. FY '26, we are projecting a growth of 1 0% in the generic business, including institutional business, both put together. Okay. So your generic... The planned generic business or in the current financial year, excluding institutional business. Got it. So your generic segment, excluding institut ional business will also grow around 8% to 10% and your institutional will also grow in that range? Around that line, yes. Next question is from the line of Tushar Manudhane from Motilal Oswal Financial Service. Just on this product filings from Ipca side for U.S . market. So the one which you report for '26, these are like what refiling of the already approved product for U.S. market or... No, no. They are fresh development, fresh filing Tushar. Understood. So 67 new filing... Everything got over in the last financial year. Got it. And sir, any particular reason you would li ke to highlight where the business with products being shipped but still taking longer is t he competition pressure so much that it's a little difficult to push our pr oduct after like after getting into this market after many years. It is nothing like that as and when the inquiry get s quoted, we do participate. But already, people are with somebody else in contract and all. So it will be a gradual progres U.S. generic business is concerned. Having said thi s, whatever benefit we have cost, other thing, own API that remain today also. Understood. Understood. And just lastly, how many -- I missed that number, how many MRs e added for FY '26? Next question is from the line of Rahul Jeewani from IIFL Securities Limited. Yes. Sir, this revenue guidance which you gave of 8 % to 10% for FY '26, Isn't that a bit conservative num ber given that -- in the domestic business, we are beating market gro wth by 300, 400 basis points every year. And for the expor t businesses as well, we have generally indicated about a 10%, 11% kind of growth excluding the API business. So are we a bit servative in terms of the overall revenue growth guidance for next year? If you see our business segment and turnover, API g rows by 6%, 7%, and all formulation business, excluding India business grew by around 1 0% and India grows by around 1 overall growth will be 8% to 10% only. Laboratories L imited May 30, 2025 No, no, no. FY '26, we are projecting a growth of 1 0% in the generic business, including The planned generic business or in the current financial year, excluding institutional business. Got it. So your generic segment, excluding institut ional business will also grow around 8% to Next question is from the line of Tushar Manudhane from Motilal Oswal Financial Service. Just on this product filings from Ipca side for U.S . market. So the one which you report for FY '26, these are like what refiling of the already approved product for U.S. market or... Got it. And sir, any particular reason you would li ke to highlight where the business with products being shipped but still taking longer is t he competition pressure so much that it's a oduct after like after getting into this market after many years. It is nothing like that as and when the inquiry get s quoted, we do participate. But already, people are with somebody else in contract and all. So it will be a gradual progres s as far as the U.S. generic business is concerned. Having said thi s, whatever benefit we have cost, other I missed that number, how many MRs Next question is from the line of Rahul Jeewani from IIFL Securities Limited. Yes. Sir, this revenue guidance which you gave of 8 % to 10% for FY '26, Isn't that a bit in the domestic business, we are beating market gro wth by 300, 400 basis points every year. And for the expor t businesses as well, we have generally indicated about a 10%, 11% kind of growth excluding the API business. So are we a bit If you see our business segment and turnover, API g rows by 6%, 7%, and all formulation business, excluding India business grew by around 1 0% and India grows by around 1 2%. The
Okay, sir. So this is including Unichem as well. You were talking about.
Yes, yes. Even Unichem business also will grow arou nd 8% to 10%. So overall, company as a whole group level also, we should grow around 8% to 10%.
Sure, sir. And sir, once the integration benefits o f Unichem start playing out going into the next couple of years, when do you think that this g rowth of 8% to 10% would accelerate going forward? And which...
Around -- That time, the top line should grow around 12%
Okay. Sure, sir. And sir, on the U.S. business, I m issed the number for it. So at 1 point, you said INR22 crores What is the U.S., sales...
In our stand - Whereas in the consolidated account what actually g ot sold by Unich market is that they sold is INR
Okay, sure sir, last question on Unichem. You indic ated about a 100 basis point margin expansion fo r Unichem going into next year. Now would this marg in expansion be on the full year margins of Unichem or the 14%, 16% margins whi ch Unichem had in the second half of last year?
No, no, it is on the whole year, we are talking.
As there are no further questions from the participant s, I would now like to hand the conference over to the management for the closing comments.
Hopefully, we have answered all the questions. I do n't think there is anything further to add. Tha nk you very much all the participants. Thank you.
On behalf of DAM Capital Advisors, that concludes t his conference. Thank you all for joining us, and you may now disconnect your lines.
Thank you. Bye. Ipca Laboratories L Okay, sir. So this is including Unichem as well. You were talking about. Yes, yes. Even Unichem business also will grow arou nd 8% to 10%. So overall, company as a level also, we should grow around 8% to 10%. Sure, sir. And sir, once the integration benefits o f Unichem start playing out going into the next couple of years, when do you think that this g rowth of 8% to 10% would accelerate going And which... That time, the top line should grow around 12% -- 12%, 13%. Okay. Sure, sir. And sir, on the U.S. business, I m issed the number for it. So at 1 point, you crores to INR23 crores . And at some other point, you also indicated What is the U.S., sales... -alone accounts, what we have built to Unichem U.S. is INR Whereas in the consolidated account what actually g ot sold by Unich em U.S. in the U.S. market is that INR23 crores. So it is INR25 crores, yes. So what we ship is INR INR 25 crores. Okay, sure sir, last question on Unichem. You indic ated about a 100 basis point margin r Unichem going into next year. Now would this marg in expansion be on the full year margins of Unichem or the 14%, 16% margins whi ch Unichem had in the second half of No, no, it is on the whole year, we are talking. there are no further questions from the participant s, I would now like to hand the conference over to the management for the closing comments. Hopefully, we have answered all the questions. I do n't think there is anything further to add. nk you very much all the participants. Thank you. On behalf of DAM Capital Advisors, that concludes t his conference. Thank you all for joining us, and you may now disconnect your lines. Thank you. Bye. Laboratories L imited May 30, 2025 Yes, yes. Even Unichem business also will grow arou nd 8% to 10%. So overall, company as a Sure, sir. And sir, once the integration benefits o f Unichem start playing out going into the next couple of years, when do you think that this g rowth of 8% to 10% would accelerate going Okay. Sure, sir. And sir, on the U.S. business, I m issed the number for it. So at 1 point, you . And at some other point, you also indicated INR65 crores. INR 65 crores. Okay. em U.S. in the U.S. INR 65 crores, what Okay, sure sir, last question on Unichem. You indic ated about a 100 basis point margin r Unichem going into next year. Now would this marg in expansion be on the full year margins of Unichem or the 14%, 16% margins whi ch Unichem had in the second half of there are no further questions from the participant s, I would now like to hand the Hopefully, we have answered all the questions. I do n't think there is anything further to add. On behalf of DAM Capital Advisors, that concludes t his conference. Thank you all for joining