Cipla Limited

We will review the discrepancies in the working capital figures and provide clarity on the differences noted in the reports.

We are focusing on strategic capital expenditures and exploring AI technology to enhance our operations and efficiency.

We have spent almost about 3% of our capex towards renewable energy in the last year, totaling around Rs.35 Crores to Rs.40 Crores. For new biology, we are spending on areas of peptide and biosimilars, with an outlay last year of over 1% of our total revenue. Total capex was around Rs.1350 Crores, and we hope to increase that in the year ahead.

The transdermal patch has not progressed for the past two years, and that program has been terminated. The rights for this patch, which was with a partner in Japan, have now been given back to the partner.

If you subtract 10,400 from our 25,800 Crores revenue, the total amount will be global business, which is around 15,000 Crores.

All demands regarding share split, dividend, etc., will be discussed in our report, after which a decision will be taken.

In India, we launch 55 to 60 products every year; in the US, we have 10 to 15 products in our pipeline; and in South Africa, we launch 20 to 25 products annually. These products are evaluated and analyzed comprehensively, focusing on areas like diabetes, respiratory, and cardiovascular.

The budget impact has been minimal for companies, but we will benefit from the government's increased healthcare spending across the sector. Ashish will provide details on the dividend policy.

We spend 6% on R&D and aim to keep it up to 7%-8%. We have around 1400 to 1500 employees in R&D across our centers in India and abroad.

The company spends slightly over 2% of its revenues on CSR. The CSR committee is chaired by Mr. Hamid and includes Mr. Adil Zainulbhai, Ms. Puneeta Lal, and myself.

We have done several projects in solar energy, and our focus is to take renewable energy to over 50% of the total energy consumption of the company, with about 64 megawatts of electricity coming from solar.

The reduction of promoter holding last year was 1.5 to 2%, with stated objectives around philanthropy and social impact. We value patented products annually using NTVs for product selection and valuation.

Q4 is a non-seasonal quarter for Cipla, with most of the season in India starting in Q1 and Q2. Therefore, there is typically a fall in revenues in Q4 compared to Q3, which is a big quarter due to the seasonality of respiratory and acute medications.

The total number of employees is around 27,000, and we aim to increase the number of women employees to over 10%, with a target of at least 25% in leadership roles over the next two to three years.

The company will focus on six areas: respiratory, wellness, mental health, antimicrobial resistance, diabetes and obesity, and oncology over the next three to five years.

The attrition rate in India is roughly about 16%-17%, but it falls lower when combining global locations.

We are focusing on infectious diseases, cardiac medicines, and thyroid medicines, which are in our pipeline. It takes 2 to 3 years to bring these products to market, but we are trying to launch them as soon as possible.

We do about Rs.1350 Crores in capex last year and are likely to increase it to about Rs.1500 Crores this year.

We are very active on Artificial Intelligence, with several use cases running in manufacturing, supply chain, and quality. We are automating and digitizing operations to achieve better outcomes.

Last year, we evaluated somewhere around 40 plus molecules. The women's share was about 15.3% and attrition was about 18.7%, and of course it keeps changing.

Roughly about Rs.67 Crores of our CSR expenditure goes towards palliative care, which is one of our key focus areas. About 50% of our CSR expenditure is allocated to this.

The new ventures segment contains our India Wellness portfolio under CHL, which includes a specialty business and similar businesses that are in a nascent stage and are yet to generate revenue.

The right way to look at trade receivables is in terms of days of sales. For FY2023, FY2024, and even June quarter FY2025, we are in the same range of about 60 to 65 days, indicating that trade receivables have not increased in relation to sales.

We track overdue receivables and follow up or provide for them in the accounts. I assure you that it is not of any significance of materiality.

The inconsistency pointed out in the annual report regarding working capital figures is due to the difference between income from operations and total income including other income. Our working capital is around Rs.7,535 Crores, not Rs.20,000 Crores plus.

Our board-approved policy considers various parameters, including planned capital expenditure and profitability, with an endeavor to pay out around 30% of profits as dividends. Currently, we are at about 22% to 25% and will continue to adhere to this policy.

We are constantly looking at cost optimization and improving overall productivity, including the use of digital automation and AI as tools to enhance productivity and yield for sustainable profitability.