Emcure Pharmaceuticals Limited — Q3 FY26

Emcure Pharmaceuticals Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=gjNHelTMz50 Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to MQ Pharmaceuticals Limited Q3 FI26 earnings conference call. As a 0:10 10 seconds 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 0:19 19 seconds during the conference call, please signal an operator by pressing start then zero on your touchstone phone. 0:24 24 seconds Please note that this conference is being recorded. I now hand the conference over to Mr. Push Nahar, EVP, corporate strategy and development. 0:34 34 seconds Thank you and over to you Mr. Nahar. 0:37 37 seconds Thank you Renju. Good afternoon everyone. Earlier today we released our financials for the third quarter of fiscal 26 along with the press release. 0:45 45 seconds These are also posted on our website. We hope you all had the opportunity to review it. I'd like to bring to everyone's notice that this call is 0:52 52 seconds being recorded and the recording and transcripts will be available on our website to discuss the business performance and outlook. We have on our 1:00 1 minute on the call our managing director and CEO Mr. Satish Mata, our CFO Tajutin Sher, full-time director Mr. Samit Mata 1:07 1 minute, 7 seconds and president corporate strategy development and finance Mr. Vikart Takar. Before we begin, I want to remind everyone about the safe harbor related 1:14 1 minute, 14 seconds to today's investor call. Today's discussion may include certain forward-looking statements which must be viewed in conjunction with the risk that a business faces that could cause a 1:23 1 minute, 23 seconds future results, performance or achievements to differ significantly from what is expressed or implied by such forward-looking statements. With this, I'll ask Mr. Satish Mata to give his opening statements. 1:33 1 minute, 33 seconds Hey, thank you Bish. Uh good afternoon to all of you and uh thanks a lot no for joining us today. On behalf of the board 1:42 1 minute, 42 seconds management team and myself I wish all of you a very very happy and successful 2026. 1:52 1 minute, 52 seconds I mean just you know step back and look at 2025 and in my career this has been 1:58 1 minute, 58 seconds one of the difficult year full of challenges and tarformish 2:05 2 minutes, 5 seconds all equations so which were established over a period of time being questioned geopolitical disturbances political 2:12 2 minutes, 12 seconds upheavalss I have not seen something similar which happened in 2025 in my 2:18 2 minutes, 18 seconds career but at the same time We at NQR, I mean global, you know, a lot of upheavalss, but we at NPR view this 2:27 2 minutes, 27 seconds period as one that strengthened our organization, sharpened our focus, 2:35 2 minutes, 35 seconds improved our resilience, and reinforced our commitment to long-term value creation. 2:43 2 minutes, 43 seconds FI26 marks the first year of our fiveyear strategic road map. This road 2:50 2 minutes, 50 seconds map is designed to consistently deliver higher revenue growth, improved 2:57 2 minutes, 57 seconds operating margins, healthier returns on capital, stronger cash flows, enabling 3:04 3 minutes, 4 seconds us to build a more durable business that compounds value that compounds value year after year. 3:12 3 minutes, 12 seconds I mean let me step back and tell you when I started you know promoting our brands we started promoting our brands in uh mid 1995 3:21 3 minutes, 21 seconds uh that's the time you know as any other company does you know we went in for branded generic products and after that 3:29 3 minutes, 29 seconds on the back of science technology innovation that we have about which I keep on talking in every call what we did we gave maximum number of 3:38 3 minutes, 38 seconds differentiated specialty products in last you know 20 years 20 25 years and uh whether we gave the concept of kality 3:46 3 minutes, 46 seconds we gave you know iron anemia the market you know we dominate because of 404M and of course you know bio similars and 3:55 3 minutes, 55 seconds that's how you know we have won the confidence of the medical fraternity as 4:02 4 minutes, 2 seconds well as the patients in brand Mure and Mure is synonymous in the doctor's chamber with innovation and quality 4:11 4 minutes, 11 seconds Now this this is a well calibrated move to go up the value chain and enhance our margins on a sustained basis. But during 4:21 4 minutes, 21 seconds the year you know something significant has happened and that is something you know I would like to allude to having talked you know about uh branded 4:29 4 minutes, 29 seconds generics and differentiated specialtity products in this particular year 2025 4:35 4 minutes, 35 seconds late 2025 we entered into exclusive partnership with no Nordics and let me tell you that as far as this particular 4:43 4 minutes, 43 seconds partnership is concerned it was after a fierce competition there were at least eight or nine companies who were interested in partnering with partnering 4:50 4 minutes, 50 seconds with no nodis and they selected mure and we became the only company only company to launch the innovator drug in the game 4:59 4 minutes, 59 seconds changing semaglutide category everyone keeps on talking about lot of numbers of semiglutide I wouldn't go into that but every reason to believe that this G&P1 5:08 5 minutes, 8 seconds which uh no is has launched is going to change the market as never before it is already a blockbuster 5:16 5 minutes, 16 seconds this partnership not only gives us first more advantage but also So allows us to bring original innovative product to 5:23 5 minutes, 23 seconds Indian patient. Something that has potential to meaningfully improve outcome for patients suffering from obesity and related co-orbidities. 5:33 5 minutes, 33 seconds As I have been discussing you know with no for last few months I came on to understand there are 230 co-moralities 5:40 5 minutes, 40 seconds which are associated with obesity. So this you know is a great molecule that we are promoting and there is lot of science and data you know known now has 5:49 5 minutes, 49 seconds and this being you know in the category of RDNA bio similar it's a very difficult product to manufacture but the beauty is you know having started 5:58 5 minutes, 58 seconds marketing having started you know as a branded generic then specialtity now you know we are getting involved with 6:04 6 minutes, 4 seconds innovation and u this innovation is just harbinger of many more such innovations 6:11 6 minutes, 11 seconds to follow And I'm sure you know with the success of Pistra our brand of Semagide we will have the execution capability to 6:20 6 minutes, 20 seconds prove to other multinationals that Mure will emerge as a company that can be associated with for marketing innovation. 6:28 6 minutes, 28 seconds Our portfolio strategy as I told last time also we are uniquely placed as you know we are strong in both chemistry and 6:36 6 minutes, 36 seconds biotech. one of the very few companies in the country which has you know both presence in biology and this one I think 6:44 6 minutes, 44 seconds the finance bill you know the budget which was presented on Sunday 1st of February at that time you know honorable 6:51 6 minutes, 51 seconds finance minister Nirmali Sitha Raman was a pleasant surprise to me uh she started you know with biologics and now you know 6:58 6 minutes, 58 seconds government has earmarked 10,000 cr 10,000 crores for bioarma shakpi and 7:06 7 minutes, 6 seconds they want to encourage the bio simulators they want to encourage you know biologics going forward and I'm delighted to hear all of you that we at 7:14 7 minutes, 14 seconds Mure are very well positioned to benefit from the same as of today when I'm speaking to you we have a strong 7:22 7 minutes, 22 seconds portfolio of seven biootherics which we are already marketing already commercialized and two waiting approval 7:30 7 minutes, 30 seconds and couple of more in development so this is one area where we should be doing well we have given a lot of products which are chemistrydriven like 7:39 7 minutes, 39 seconds you know I talked about kality I talked about you know products like your uh uh say uh anemia management you know for xp 7:48 7 minutes, 48 seconds or fia oro forcm and now you know I see lot of future going forward by working on biologics as well and this also has 7:56 7 minutes, 56 seconds blessing from government of India having said all these things now let me turn my attention to three key results already 8:03 8 minutes, 3 seconds posted most of you must have had a wants to go through the results. Well, let me briefly summarize summarize what has 8:10 8 minutes, 10 seconds happened. Our Q3 FY26 performance is a clear reflection of the strategy that we are executing during the quarter. All 8:18 8 minutes, 18 seconds our businesses delivered strong growth while we remained firmly on track with our margin objectives. 8:27 8 minutes, 27 seconds We delivered 20.4% 4% year-on-year revenue growth with profits of 231 cr 8:34 8 minutes, 34 seconds after one-time impact of labor code translating into 48% growth in PAT. 8:41 8 minutes, 41 seconds Adjusted PAT excluding labor code grew by more than 65%. 8:48 8 minutes, 48 seconds Tibbit margin sorry expanded by 110 basis points to 19.5% 8:57 8 minutes, 57 seconds despite investment in new initiatives and impact of sonopi diabetes in licensing portfolio demonstrating the underlying strength 9:06 9 minutes, 6 seconds and operating leverage that we have in the business in India I am happy to state our uh margin you know continues 9:15 9 minutes, 15 seconds to build a healthy momentum The domestic business has recorded a growth of 15% year on year. Our growth was led 9:23 9 minutes, 23 seconds especially by our office as in cardio diabetes oncology 9:30 9 minutes, 30 seconds while new areas at dharma and consumer about which I spoke even in the last quarter continue to scale in line with 9:37 9 minutes, 37 seconds our plans. During the quarter we further strengthen our team especially on the acute side. We remain confident that we 9:46 9 minutes, 46 seconds will continue to grow above industry going forward. Moving to international business, the quarter saw strong 9:53 9 minutes, 53 seconds performance across all international business and along all verticals which helped us to deliver 24.5% by the way of 10:02 10 minutes, 2 seconds growth. Europe is saying strong traction with very strong growth of 29.6% in the quarter led by ramp up of base business. 10:12 10 minutes, 12 seconds Then realizing the benefit of amphitoriine and the acquisition bolton acquisition that we did in the form of 10:20 10 minutes, 20 seconds mans we expect ampheterine B to see launches across Europe by end of the 10:26 10 minutes, 26 seconds year our Canada business continued to have its growth momentum and grew by 13% 10:33 10 minutes, 33 seconds led by market share gains and new launches. Our rest of India business grew by 30.7% led by strong growth both 10:42 10 minutes, 42 seconds non ARV and ARV businesses. We have a robust portfolio pipeline and uh very positive about the growth very positive about the growth going forward. 10:54 10 minutes, 54 seconds Before I conclude, let me say from the bottom of my heart, patients come first in everything that that we do. We take 11:02 11 minutes, 2 seconds pride in telling everyone that we are driven by quality and patient care. The philosophy of patient first will 11:10 11 minutes, 10 seconds continue to drive our aspirations and the work you know that we are doing in R&D with their chemistry, biologics or even for that matter when we meet the 11:17 11 minutes, 17 seconds doctors that is going to be the core part of our philosophy as we serve billions of people at the global level. 11:27 11 minutes, 27 seconds While it is early to provide specific guidance for FY27, we believe the company is well 11:35 11 minutes, 35 seconds positioned to continue delivering consistent performance supported by multiple growth levers about which you 11:42 11 minutes, 42 seconds know I've already talked to you and disciplined execution of our strategy. 11:46 11 minutes, 46 seconds Let me tell you being in the industry for last so many years and being the founding member of Mure Group execution 11:53 11 minutes, 53 seconds in my opinion is key to success. that plays a very very important role and that's one area where we are going to be absolutely laser focused going forward. 12:02 12 minutes, 2 seconds I believe this is only the beginning of our five-year journey and we remain confident that our best is yet to come. 12:11 12 minutes, 11 seconds I'm grateful to all the Enurians uh for trusting me and uh obviously my 12:18 12 minutes, 18 seconds new stakeholders including the shareholders who have joined the Mur family. As head of the family, I would like to assure reassure you I'm 12:27 12 minutes, 27 seconds extremely conscious of my responsibility towards the shareholders and everything will be done keeping in view the 12:35 12 minutes, 35 seconds interest of the shareholders who have uh reposed their faith in MQ. With these remarks, I would now pass on to call Mr. 12:44 12 minutes, 44 seconds Taj, my CFO, to share the financial details of the last quarter with you. Uh before we open the floor for question and answer once again thank you. 12:57 12 minutes, 57 seconds Thank you for patient hearing and I always look forward to this call and now you know over to Taj. 13:06 13 minutes, 6 seconds Good afternoon everyone. Thank you for joining us today. 13:11 13 minutes, 11 seconds Before we move to the Q&A, I will take you through some of the key financial highlights for the third quarter. 13:18 13 minutes, 18 seconds Revenue from operations for the quarter grew 20.4% year-over-year to 2363 crores. The domestic business grew 15.4% 13:26 13 minutes, 26 seconds year-over-year to 1,025 crores driven by strong performance across all key therapies. 13:32 13 minutes, 32 seconds International markets maintained their strong growth momentum growing 24.5% year-over-year to 1,338 crores of which 13:41 13 minutes, 41 seconds Europe grew 29.6% year-over-year reaching 464 crores. This was led by business base growth and bank 13:50 13 minutes, 50 seconds acquisition. Canada reported a healthy 12.8% growth to 397 crores. We remain on track to grow in mid- teens for the 13:58 13 minutes, 58 seconds year. Emerging markets saw strong growth 30.7% year-over-year to 477 crores with 14:06 14 minutes, 6 seconds both ARV and non ARV seeing strong growth. 14:10 14 minutes, 10 seconds Gross margins for the quarter stood at 59.3% versus 60.1% in 3Q of 26. The decline was largely due to the in 14:18 14 minutes, 18 seconds licensing of Senoph portfolio along with business mix both higher international and product mix within geographies 14:26 14 minutes, 26 seconds excluding other income to 27.2% 2% year-over-year to 460 crores. 14:32 14 minutes, 32 seconds Kibida margins stood at 19.5% versus 18.4% in 3Q of 25 and 19.3% in 2Q of 26 14:42 14 minutes, 42 seconds supported by operating leverage and productivity gain which was partly offset by Sanopi O addition. The 14:50 14 minutes, 50 seconds appreciation and amotization for the quarter was at 105 crores. Interest cost was 38 crores. During the quarter, we 14:57 14 minutes, 57 seconds also took an exceptional expense of 38 crores related to labor code changes. The effective tax rate stood at 26.3%. 15:06 15 minutes, 6 seconds Profit after tax came at 231 crores showing strong growth of 48% year-over-year. Adjusted PT came at 260 crores and grew 65%. 15:18 15 minutes, 18 seconds Net for the quarter was 123 crores. The depth has increased primarily due to payout for Zuventus minority state. 15:27 15 minutes, 27 seconds With that, I'll now open the floor for questions. 15:31 15 minutes, 31 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on touchstone telephone. If you 15:40 15 minutes, 40 seconds wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies 15:47 15 minutes, 47 seconds and gentlemen, we will wait for a moment while the question assembles. 15:55 15 minutes, 55 seconds The first question comes on the line of Amed Chalki with GM Financial. Please go ahead. 16:01 16 minutes, 1 second Yeah, thank you so much and congrats to the management on good set of numbers. 16:06 16 minutes, 6 seconds Um, so I have first question on uh India business just wanted to understand the growth factors here for the quarter 16:12 16 minutes, 12 seconds particularly we have delivered 15% growth. Uh I believe uh uh this was largely normalized quarter. Um so is it 16:22 16 minutes, 22 seconds possible to give some understanding of what has driven 15% growth and how how is the core business performing versus the inlicens business like Samophi etc. 16:33 16 minutes, 33 seconds Thank you. 16:35 16 minutes, 35 seconds Thanks. So I think the uh the domestic business the 15% that also includes some 16:42 16 minutes, 42 seconds element from the OAD portfolio that we enl second quarter. So X of that I think the base business is also growing in a 16:50 16 minutes, 50 seconds healthy double digits 10% plus and that is led by growth across across all our therapies right especially I think the 16:58 16 minutes, 58 seconds chronic side cardio diabet we are seeing quite strong growth uh we've been talking about CNS that is actually ramping up quite well for us so those 17:06 17 minutes, 6 seconds are some of the key drivers for the growth and the uh iron portfolio has also started delivering double digit growth 17:14 17 minutes, 14 seconds where the growth has been an issue for a Right. 17:17 17 minutes, 17 seconds Yes. So even on the iron segment, the FCM is now back on growth trajectory. 17:23 17 minutes, 23 seconds Okay. And the second question I have is on the GLP1 product. Uh uh so uh here uh uh uh basically what would be our 17:32 17 minutes, 32 seconds offering when we uh go to the doctors because we would be competing with one side there would be a pipeptide which is 17:39 17 minutes, 39 seconds a better product in terms of efficacy etc. Plus there will be a generic competition on the sim camagotide which will come in maybe over next one or two 17:47 17 minutes, 47 seconds months. So um as a as a innovative product on the simite site what all offerings we would be uh uh uh taking uh 17:56 17 minutes, 56 seconds uh uh it to doctors when we would be selling this product basically is it a convenience is it something like a pen which is better like what all things 18:06 18 minutes, 6 seconds which will work in our favor to get more market share. 18:10 18 minutes, 10 seconds Sure. So I I think just to start off with a lot of the new data that is coming from semaglutide especially with uh the new strength that has been 18:18 18 minutes, 18 seconds approved shows that it is equal in efficacy if not better than tresipide uh in weight loss but far better in terms 18:27 18 minutes, 27 seconds of the data that it has for cardiac coorbidities. So in that context positioning semaglutide as a better 18:35 18 minutes, 35 seconds product than uh you know the peers is definitely something that we are educating the entire HCB community. uh 18:44 18 minutes, 44 seconds in addition to that you know since it's a very complimentary arrangement with no uh some of the specialties uh that they 18:52 18 minutes, 52 seconds are strong in which is endto we are complementing by going like I mentioned since there is great uh data in 18:59 18 minutes, 59 seconds cardiovascular you know and since we are so strong in that segment uh we've made a very big push in the entire cardio 19:07 19 minutes, 7 seconds segment so that's how this arrangement at this time is working well uh we are already bracing uh in terms of you know the competition 19:16 19 minutes, 16 seconds we expect it to be fierce but there are things that are definitely advantages. 19:20 19 minutes, 20 seconds One is of course the years of data that the innovator brings u you know the device that you mentioned also is uh you 19:29 19 minutes, 29 seconds know much more convenient and uh you know as and when required there will be flexibility in terms of pricing. 19:39 19 minutes, 39 seconds Sure. And how how is the offic so far and have you added more mass or feed force to sell this product? 19:48 19 minutes, 48 seconds Yeah, so we launched the product only in end December. So one month in we're happy with the initial traction. Uh in 19:55 19 minutes, 55 seconds terms of the coverage uh two of our largest divisions are handling uh uh promoting and educating the medical 20:02 20 minutes, 2 seconds fraternity for this product. So we believe that's adequate coverage pan India and now the product is very much available across India as well. So so 20:11 20 minutes, 11 seconds far we're very happy with sort of the initial traction that we're seeing with the product. 20:17 20 minutes, 17 seconds Sure. Just last question I have on the gross margins. So it has fallen this quarter despite good India growth. Uh 20:24 20 minutes, 24 seconds just wanted to understand reasons here and uh any guidance of the gross margin would be helpful. Thank you so much. I enjoyed that. 20:32 20 minutes, 32 seconds Yeah. So on the gross margin front it's really more of a mix issue. So if you look at as push mentioned we have the uh 20:39 20 minutes, 39 seconds Sanopi OAD portfolio as well as uh in a limited sense the launch of POVistra and then our international piece of the 20:48 20 minutes, 48 seconds business has actually grown faster than our domestic business. So when you look at all of those different uh components 20:55 20 minutes, 55 seconds that's what uh led to the weighted average gross margins coming down slightly this quarter. And I think uh at 21:02 21 minutes, 2 seconds the same time a lot of those components of the business have a lower component of opex to support those gross margins. 21:09 21 minutes, 9 seconds So that's where you're seeing uh our ebida margin still being healthy and in fact uh in line with the uh small expansion that we had guided to. 21:19 21 minutes, 19 seconds Sure. So going ahead should we expect lower gross margin considering our exports are growing faster than India business? 21:29 21 minutes, 29 seconds So if you look at it, I think for overall gross margins for FY26, we're still going to be in that ballpark about 21:35 21 minutes, 35 seconds 60% range. Uh we haven't put out a specific guidance, but uh yes, we do anticipate that uh the international 21:44 21 minutes, 44 seconds business will continue uh to grow relatively faster than the domestic business. And so to that extent, you could see these gross margins uh you 21:53 21 minutes, 53 seconds know moving a little bit uh in that direction. At the same time like I said uh at the IBIDA level we think that we'll get benefit from economies of 22:02 22 minutes, 2 seconds scale and operating leverage to support that mix. 22:05 22 minutes, 5 seconds Sure. Got it. Thank you so much. Thank you. 22:11 22 minutes, 11 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question 22:18 22 minutes, 18 seconds comes on the line of Sudashan Padman from Ask NTPs. Please go back. 22:26 22 minutes, 26 seconds Thank you for taking my question and congratul Sorry for interrupting. You sound uh can you just increase your volume a little? 22:37 22 minutes, 37 seconds Can you come a little closer? 22:38 22 minutes, 38 seconds Can you hear me? Uh now am I loud and clear? Please go ahead. Thank you. Yeah. 22:45 22 minutes, 45 seconds Yeah. Uh I would like to understand a little bit more on the domestic side where we have done you know quite well in the last few quarters. uh you know we 22:52 22 minutes, 52 seconds have embarked on you know pushing a little bit more on the chronic side I mean through in licensing through you know phenopy and also if you look at it 23:00 23 minutes you know embarking or deepening our presence in gynec therapy etc. So if you can give some color with respect to the 23:07 23 minutes, 7 seconds acute chronic where do we believe is a sweet spot you know where we think acute and chronic u you know in terms of 23:15 23 minutes, 15 seconds having the split in terms of also engaging with the doctors. So just a little bit more color on that and how do we expect to expand the therapy from here as well. 23:26 23 minutes, 26 seconds Sure. So right now if you look at it our chronic is now closer to about 50/50 chronic and uh acute for us. uh I think 23:35 23 minutes, 35 seconds where incrementally going forward we do see the chronic going better than the acute side and especially if you look at 23:42 23 minutes, 42 seconds with semaglotide even on the and the diabetes side where with the Sanopi portfolio the whole idea when we took over the Senopi portfolio is we see that 23:51 23 minutes, 51 seconds benefit coming into our diabetes where we historically we haven't been that strong we are seeing some of that playing out in the early days we're seeing a big benefit of that in the 24:00 24 minutes cardio side so we do expect the chronic share to increase over time as we go forward. 24:08 24 minutes, 8 seconds Yeah, sure sir. And with respect to you know the licensing strategy, I mean of course it gives you you know the edge when you go and you know speak to the 24:16 24 minutes, 16 seconds physicians etc. uh I mean the kind of deal that we you know had you know with respect to senaglutide what is the 24:23 24 minutes, 23 seconds strategy here in terms of you know strengthening our presence with the doctor community where do we think you know we would like to kind of engage 24:31 24 minutes, 31 seconds more and how do we feel the proportion of the business coming in from this part of the licensing or primarily tying up with the innovators. 24:41 24 minutes, 41 seconds So if you look at uh in licensing overall for uh mcure it probably represents about 6 or 7% of our total 24:49 24 minutes, 49 seconds revenue base and even if you were to bifrocate that for the domestic uh business it's probably somewhere in the low to mid uh uh double digits in terms 24:58 24 minutes, 58 seconds of or low to mid- teens uh contribution to the overall domestic business. uh we firmly believe that having access to 25:07 25 minutes, 7 seconds some of these uh very strong legacy brands or even innovative brands like uh your second brand Fistra, it allows us 25:15 25 minutes, 15 seconds to really build on our strengths. We've always been known as a company that's bringing new products uh and you know uh 25:22 25 minutes, 22 seconds engaging with the medical fraternity with sciencebacked products and I think this in licensing strategy fits firmly with that where we're then able to also 25:31 25 minutes, 31 seconds have a ruboff effect on the rest of our portfolio. So we like to highlight examples like a cardiac segment where you know on our own we're very strong 25:40 25 minutes, 40 seconds amongst the top 10 players but with the uh complimentary nature of the senopi portfolio we're now overall the fourth 25:47 25 minutes, 47 seconds largest company in the cardiac segment and we have seen that by giving one or two of our mure brands to that team uh 25:55 25 minutes, 55 seconds we have seen um sales immediately pick up for some of those brands given their strong doctor connect as well. So I 26:02 26 minutes, 2 seconds think these are some of the uh aspects that we will continue to look for in evaluating and trying to do more such in licensing arrangements. 26:12 26 minutes, 12 seconds So thanks a lot. So one final question before I join back the queue is on the export side of the business this quarter or you know the last few quarters we 26:21 26 minutes, 21 seconds have been seeing very good growth coming in from the launch of empeterin and you know we are also having you know if I'm correct probably a little later on you 26:28 26 minutes, 28 seconds know launching as well. So if you can give some color with respect to how we are you know looking at the export market in the next couple of years and 26:36 26 minutes, 36 seconds specifically with respect to the gluteside in the international market do we think that you know apart from this can be a shortened arm for us you know 26:45 26 minutes, 45 seconds given that there's a lot of players also coming into this space um let me just give a macro answer and then Sam can talk a little bit about 26:53 26 minutes, 53 seconds some of the pipeline that might drive that growth. Uh so the international markets uh we are very bullish that they 27:00 27 minutes will continue to grow mid to high teens for us organically and we've seen that uh you know very strong performance 27:08 27 minutes, 8 seconds across markets whether you talk of Canada Europe or the rest of world emerging markets um I obviously in 27:15 27 minutes, 15 seconds Europe in particular the bank's portfolio that we acquired earlier at the start of the year as well as the launch of liposomaal ampheterin B in UK 27:24 27 minutes, 24 seconds Italy and soon to rolled out in other parts of Europe is what's driving the very strong performance that will continue into FY27. 27:34 27 minutes, 34 seconds In Canada, I think it's been fairly uh broad-based. uh if you look at the mantra uh plus maran uh complimentary 27:42 27 minutes, 42 seconds portfolio uh we've delivered you know 13% uh revenue growth and I think uh we are again bullish that low teen sort of 27:51 27 minutes, 51 seconds growth should continue in that market given the very robust pipeline of in-house products that we have and on 27:58 27 minutes, 58 seconds the emerging markets I think it's a combination of you know um the complex injectables or some of these 28:05 28 minutes, 5 seconds differentiated products that we continue to file and await you know regulatory approvals and then launch that is 28:13 28 minutes, 13 seconds driving the growth in these markets. I think semaglutide will be one of the products uh that obviously over time uh 28:21 28 minutes, 21 seconds becomes more meaningful for us in some of these international markets but I think it's a much a broader portfolio of these various products that's going to 28:29 28 minutes, 29 seconds drive that. So Sam I don't know if you want to give some more color on the Sure. I think um you know from the beginning we've always said that we 28:36 28 minutes, 36 seconds first built out some technology platforms and then commercialized products of it. So for example on the 28:43 28 minutes, 43 seconds liposal platform while amputurism being the first uh commercial success it's also a proof of concept that is now 28:51 28 minutes, 51 seconds being utilized to work on at least three more products which will over the uh next few years get filed and commercialized across different markets. 29:00 29 minutes uh iron of course you know given the strength that we have in the domestic market we're now leveraging by filing some of our injectable iron products 29:09 29 minutes, 9 seconds globally and uh third but you know not the least is the biologics portfolio where we seeing great success in India 29:17 29 minutes, 17 seconds and now as emerging market approvals are coming through we see that being a big driver uh pushing future growth 29:30 29 minutes, 30 seconds Thanks a lot. Uh I'm running back at you. 29:36 29 minutes, 36 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question 29:43 29 minutes, 43 seconds comes from the line of Kunal Randeria with access capital. Please go ahead. 29:48 29 minutes, 48 seconds Yeah, good evening everyone. uh so I'll just take uh forward what submit just said uh about the bar similar portfolio 29:56 29 minutes, 56 seconds uh you know expanding the emerging market so would you like to us to maybe you know uh know which products you will be targeting would be largely teleplays 30:05 30 minutes, 5 seconds or there other products in the pipeline and which geographies would you target and some timelines would also be welcome 30:13 30 minutes, 13 seconds I think while uh you know connects would be the flagship um as far as the biologics go We also believe that some 30:21 30 minutes, 21 seconds of the other products that we have which are commercial here whether it's a PEG asper whether it's poetine whether it is 30:28 30 minutes, 28 seconds even something like our pegalitated silastim or for that matter the products that we have uh you know which we are 30:35 30 minutes, 35 seconds waiting for near-term approval all of these have huge uh potential in the emerging markets. So uh of course it 30:43 30 minutes, 43 seconds will be a phase-wise approach uh since you know there will be costs also involved either with clinical trials or 30:50 30 minutes, 50 seconds filings and approvals but uh we see this as something that can go across all emerging markets especially in our 30:57 30 minutes, 57 seconds strength areas like Latin America, Southeast Asia uh where you know we are starting off with and I think liposomaal 31:04 31 minutes, 4 seconds emperor is another example of a product that we have already been filing in some of the emerging markets and it'll take 31:11 31 minutes, 11 seconds its time in terms of getting marketwise approvals but like Europe we see a huge opportunity uh for some of those key 31:19 31 minutes, 19 seconds injectable products as well for the emerging markets. 31:23 31 minutes, 23 seconds Sure. So should we assume that RLD will kind of intercept going forward in the next couple of years? 31:31 31 minutes, 31 seconds That's an absolute number. Yes. Whereas a percent we are very conscious you know percent of topline and we will continue to maintain it in the region that we traditionally have been. 31:43 31 minutes, 43 seconds Sure. Sure. And you know would it be fair to say that uh you know on Vick's comment uh on sale uh since you are only 31:52 31 minutes, 52 seconds launching in the markets now if let's say 100 is your you know kind of target uh sales you are barely you know touch 31:59 31 minutes, 59 seconds 10% of it and there is still scope to grow for the next 2 to 3 years so yeah we won't get into the numbers 32:07 32 minutes, 7 seconds and all but yeah we just started launching it out so right now I think we are present fully only in the UK market. 32:14 32 minutes, 14 seconds Most of the other geographies we are just either just in the stage of launching or we launching in the coming quarter. 32:22 32 minutes, 22 seconds Sure. Sure. I'll just last one more if I can. Lenir, you're one of the few companies to have the license. Uh so 32:30 32 minutes, 30 seconds would you like to update us on the progress uh and you know uh the eventual market potential for the drug? 32:39 32 minutes, 39 seconds Um again you know can't put a number to the market potential though we think it's a revolutionary uh introduction in the field of HIV if 32:48 32 minutes, 48 seconds you know both therapeutically and pro prophylactically it offers the opportunity for cure. So you know market 32:55 32 minutes, 55 seconds could be huge. Uh we are making very good progress. So to tell you we have completed our API validation batches at 33:04 33 minutes, 4 seconds our USFA approved facility and in terms of formulation both on the injectables and the oral solids are you know 33:12 33 minutes, 12 seconds reasonably I mean pretty much same status where we've already entered our plans to execute the batches. 33:19 33 minutes, 19 seconds Sure. A couple of your domestic peers have announced some kind of tie up with some aid agencies. So you haven't 33:27 33 minutes, 27 seconds announced anything of that sort. So do you think it puts you at a disadvantage? 33:32 33 minutes, 32 seconds Um no I think you know these are uh the pro there are several procurement agencies. I think a couple of the peers have mentioned about one or two of them 33:41 33 minutes, 41 seconds but you know there's so many different tenders so many procurement agencies whether it is who or the webar program 33:49 33 minutes, 49 seconds chai paho there's a lot of them and given traditionally we've been very strong and have great relationships with these agencies um I think we will 33:58 33 minutes, 58 seconds continue to you know have a good opportunity in the market and I don't think any of those agreements exclude us out from those 34:05 34 minutes, 5 seconds suppliers so whenever the products get approved. I think the supply the agencies put out tenders where everybody's uh allowed to apply out. 34:16 34 minutes, 16 seconds Sure. So P you mean those are exclusive agreements with those farmer companies. Uh you can also come and got it. 34:23 34 minutes, 23 seconds Perfect. This is very helpful. Thanks and all the best. 34:28 34 minutes, 28 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question 34:35 34 minutes, 35 seconds comes from the line of Bat Sa Sha family office. Please go ahead. 34:41 34 minutes, 41 seconds Yeah. Uh uh hi Satishw first and foremost uh congratulations on bettering 34:49 34 minutes, 49 seconds yourself. Uh I had uh basically two sets of questions. The first is in the uh 34:57 34 minutes, 57 seconds you're frequently guided about your various growth levers uh in terms of the product portfolio, 35:05 35 minutes, 5 seconds the partnerships and in licensing arrangements and uh product uh uh 35:12 35 minutes, 12 seconds portfolio expansion etc. But I'll be happy to get revisited about how do you 35:20 35 minutes, 20 seconds see the picture uh for next 3 to five years both in terms of domestic market 35:26 35 minutes, 26 seconds growth that you believe likely there is a compounded rate as well as the international territory where you seem 35:35 35 minutes, 35 seconds to be doing surprisingly well uh surprising at least to my mind. So I'll be uh keen to hear your view on uh long-term growth drivers. 35:48 35 minutes, 48 seconds Yeah. Uh I will start with this and then I'll let Satisha also chime in. Um so if you look at the domestic market what 35:56 35 minutes, 56 seconds we've been guiding all along is that you know we believe the industry will continue to grow very uh healthy uh high 36:04 36 minutes, 4 seconds single digits or maybe even touching double digits and uh we aspire to continue to grow faster than industry. 36:11 36 minutes, 11 seconds So even if we're talking about a 3 to 5 year time horizon, we believe that we will continue to outgrow the industry. 36:18 36 minutes, 18 seconds Uh again driven by our in-house R&D strength as well as uh the uh in licensing arrangements that we will 36:26 36 minutes, 26 seconds continue to look for in terms of augmenting our portfolio on the international side. While uh you know 36:33 36 minutes, 33 seconds obviously in some of the markets we're seeing very aggressive growth uh we uh we think over a 3 to 5 year horizon uh 36:41 36 minutes, 41 seconds you know both uh Europe and Canada we believe can continue to grow at a compounded low teen sort of growth rate 36:50 36 minutes, 50 seconds and uh on the emerging market side we've highlighted that on you know there's the HIV component which we are seeing some 36:58 36 minutes, 58 seconds strong performance over the last 12 months and a very strong order book. 37:02 37 minutes, 2 seconds Having said that, I think with the Lena Capavir and how that plays out uh has the potential to, you know, keep that 37:09 37 minutes, 9 seconds segment fairly strong for us and in fact probably a better margin profile. Uh on the rest of the business, the non ARV 37:17 37 minutes, 17 seconds business is where we believe it's still a relatively small uh contributor to the overall portfolio today. and with the 37:25 37 minutes, 25 seconds kind of product pipeline we're working on that can continue to grow healthy double digits as well. So, and this is 37:32 37 minutes, 32 seconds without talking about any sort of M&A that we might do over that 3 to 5 year horizon uh which we will obviously look 37:40 37 minutes, 40 seconds forward to uh especially while we're generating very healthy free cash flows over the next several years. So I think all in all we believe and we're very 37:49 37 minutes, 49 seconds bullish that we will continue to uh grow a very healthy amount in both India and 37:55 37 minutes, 55 seconds the international markets over this time horizon that you highlighted. 38:01 38 minutes, 1 second You want to say something huh you have said it all. Come to Shazuh good to talk to you which has said everything. I mean let me tell you that the company you 38:10 38 minutes, 10 seconds know that we have built up is on the premise you know that we are not run-of-the-mill company. We will essentially focus on science, technology 38:17 38 minutes, 17 seconds and innovation. And uh in my opening remarks you know I did tell you that when I started marketing our products you know in mid '90s at that know we 38:26 38 minutes, 26 seconds were in branded generics from branded generics we graduated to speciality products with emphasis on biologics and 38:34 38 minutes, 34 seconds chemistry and now you know we are working with no Nordics in innovator molecule you know we are bringing for the first time in the country. I believe 38:42 38 minutes, 42 seconds that journey will continue and uh as Vic rightly said you know that as far the industry is concerned in next three to five years you know we'll grow by uh a 38:51 38 minutes, 51 seconds high single digit or maybe 11 12%. uh but at the same time you know as far as we are concerned you know we'll be growing faster than the industry that's 38:59 38 minutes, 59 seconds my belief and that is based on the good work you know science and technology that we are doing talking about the 39:06 39 minutes, 6 seconds international market you know we are simply not in the commodity business and that's what you know Samit was trying to say you know the growth will come from 39:14 39 minutes, 14 seconds products like say amusi lenapaw and we have a product pipeline you know which is quite exciting uh which will do well 39:21 39 minutes, 21 seconds in the international market so the focus will on giving differentiated products in the international market so the 39:28 39 minutes, 28 seconds margins are taken care keep on investing in R&D so that we have a good uh 39:35 39 minutes, 35 seconds technologydriven pipeline as far as the Indian market is concerned same story give differentiated products and keep on looking for opportunities 39:44 39 minutes, 44 seconds like uh Oistra this no this opportunity has come our way so fairly well definfined thought process shasa we have 39:52 39 minutes, 52 seconds and as we rightly mentioned As we go up the value chain, we will also be inclined to look at some bolt-on acquisition if we come across. So very 40:00 40 minutes clear strategic road map we have but at the same time everything will be done keeping in view the interest of the shareholders and do it in a way by which 40:08 40 minutes, 8 seconds you know whatever we do will be accreative. Okay. 40:13 40 minutes, 13 seconds Thank you. Uh we have lost the line of Mr. Sha. I will promote the next that is Wami Hota from ask industrial manager. 40:21 40 minutes, 21 seconds Please go ahead. 40:23 40 minutes, 23 seconds Hi sir, uh thanks thanks for the opportunity and uh congratulations on a good set of numbers. Uh firstly uh you know I'm tracking the company for the 40:32 40 minutes, 32 seconds first time. So apologies in advance if some of the questions are rudimentary. 40:36 40 minutes, 36 seconds Uh with the change in the FDA's uh US FDA stance on uh the approval for biosimilars uh process right in terms of 40:44 40 minutes, 44 seconds the lack of uh need for a mandatory phase three clinical trial. Do we want to I mean do we have plans of further 40:51 40 minutes, 51 seconds entering somewhere down the line into the US market with our biosynthesis portfolio? That is my first question. 41:00 41 minutes Sure. So um as far as bio similars go we're closely tracking these evolving regulatory guidelines while though not 41:07 41 minutes, 7 seconds directly as an aspiration to enter the US market but you know given the kinds of products we have uh there are some 41:15 41 minutes, 15 seconds potential collaboration opportunities that could come up where we could partner with someone to file our products and have them front end the 41:22 41 minutes, 22 seconds product. So that's you know as far as US goes but uh given that a lot of you know the global agencies do follow uh the US 41:30 41 minutes, 30 seconds guidelines we are very hopeful that similar kind of uh approach is adopted by some of the other countries including 41:37 41 minutes, 37 seconds in Europe, Canada you know the emerging markets and of course finally in India as well where we can then really ramp up a lot of our pipeline. 41:48 41 minutes, 48 seconds Very helpful sir. Uh just one more question in terms of the recent uh biioarma shaky scheme that has been announced. So while it is definitely a 41:57 41 minutes, 57 seconds positive for the overall sector uh how do you see this translating specifically for let's say a company is it uh a 42:04 42 minutes, 4 seconds company like yours? So is it going to be via any kind of PLI benefit that you foresee from this or is it going to be some kind of manufacturing uh incentive 42:13 42 minutes, 13 seconds uh in terms of setting up the facility from the government or like so how is this going to translate to a company specific opportunity 42:21 42 minutes, 21 seconds early days it is very difficult to open right now I mean the policy you know I mean it is simply being mentioned in the budget speech you know of the honorable 42:29 42 minutes, 29 seconds finance minister once we get the fine print you know we'll be in a position to respond I mean but what I like about her statement that first of all know she 42:38 42 minutes, 38 seconds started with biologics so to that extent a lot of importance has been given by government of India to biologics then a corpus of 10,000 crores you know is 42:47 42 minutes, 47 seconds earmarked and if I recolct the speech you know that she made she specifically mentioned about three aspects of usage 42:55 42 minutes, 55 seconds you know she mentioned about oncology she talked about diabetes and she talked about rare disease so these are the three statements which were made by her 43:04 43 minutes, 4 seconds so once you know predictions are also how it plays out. I think u you know just to build on that couple of specific 43:12 43 minutes, 12 seconds things also a uh you know Genova definitely is uh you know into all these disease areas especially oncology. Uh 43:20 43 minutes, 20 seconds two things that were mentioned in terms of usage of funds. One was of course to set up many more clinical trial centers. 43:26 43 minutes, 26 seconds The number given was thousand and uh hopefully that should really speed up patient recruitment for a lot of the clinicals that we do. And number two was 43:35 43 minutes, 35 seconds also to strengthen a few or establish a few more nipers with uh you know capabilities and expertise in biologics 43:43 43 minutes, 43 seconds and we really value that because we are always at the forefront of industry and academia collaboration. So there you 43:51 43 minutes, 51 seconds know we would love to collaborate with these upcoming institutes to also generate new IP. No sit one more thing 43:58 43 minutes, 58 seconds was also mentioned was you know sorting out the regulatory processes by which you know they want to strengthen the 44:05 44 minutes, 5 seconds CDSO and you just mentioned about uh US you know FDA so they also want to bring about you know the method of working or 44:13 44 minutes, 13 seconds everything you know in line with the best global practices so early days but at the same time you know government is acutely conscious of the fact you know 44:21 44 minutes, 21 seconds that we have to support and sometime back you know statement was made that as well as India is concerned the vision of government of India is you know in due 44:29 44 minutes, 29 seconds course of time this you know particular sector should contribute $500 billion utopian dream but the dream is there nevertheless so to that extent I do 44:37 44 minutes, 37 seconds expect you know a lot of support let us look at the fine print and then maybe next time you know next call if we have some more details you know we'll be able to share 44:45 44 minutes, 45 seconds sure thanks for the detailed response and all the best thank you next question comes from the 44:53 44 minutes, 53 seconds line of kunal run area with access capital peaceful. 44:59 44 minutes, 59 seconds Next question. Let me know. Thank you. Next question comes from the line of Bat Sisha with Sha family office. 45:08 45 minutes, 8 seconds Please go ahead. 45:10 45 minutes, 10 seconds Yeah. Uh I satisfy to continue the dialogue. Actually I was on the call earlier also but probably the 45:18 45 minutes, 18 seconds coordinator of the call did not like my voice and did not allow me to proceed with my questions. But um so to 45:26 45 minutes, 26 seconds summarize uh what uh you and Vic were saying also what Satish mentioned uh 45:34 45 minutes, 34 seconds essentially domestic business industry is likely to do 8 to 10%. We probably 45:41 45 minutes, 41 seconds doing uh uh 12 to 14%. International Europe and Canada is pretty much uh well 45:49 45 minutes, 49 seconds stacked up supplemented by specialtity portfolio not commodity portfolio and should be doing hopefully 14 to 16% kind 45:58 45 minutes, 58 seconds of a growth and nonab uh uh non ARB rest of the world market 46:08 46 minutes, 8 seconds hopefully should be doing 14 to 16%. So all put summarizing uh somewhere in the band of 13 to 15% 46:17 46 minutes, 17 seconds compounded overall will be a fair summary over next uh five years. 46:24 46 minutes, 24 seconds Yeah, I think broadly without getting into each of the specific numbers I think broadly if you look at it a low to 46:31 46 minutes, 31 seconds mid- teens uh growth rate compounded growth rate is what we will aspire for and that's what we've been guiding to I 46:38 46 minutes, 38 seconds think for the year. uh obviously we had guided uh in the past to roughly a 13% growth. Uh I think we're probably 46:46 46 minutes, 46 seconds tracking slightly ahead of that and uh you know similar sort of guidance we would probably be uh looking at for FY27 forward. 46:56 46 minutes, 56 seconds Okay. And on the secondary on the margins uh we already are at a uh what I would 47:04 47 minutes, 4 seconds regard as uh pretty healthy margin this quarter or at operating level almost 27% uh uh sorry uh uh 20%. 47:17 47 minutes, 17 seconds uh would we say margins over this journey uh would uh remain in this band 47:26 47 minutes, 26 seconds improve or is the risk of uh uh coming off? 47:32 47 minutes, 32 seconds Yeah, I think um there barring any M&A or in licensing if we look at the 47:39 47 minutes, 39 seconds organic growth uh we anticipate our margin profile to continue to improve and so over a 3 to 5year horizon we 47:48 47 minutes, 48 seconds would anticipate at least a 300 uh 300 to 400 basis point improvement in our EBA margin profile with roughly a 100 47:57 47 minutes, 57 seconds basis points or so improvement year for the next uh two to three years is what we have guided to in the past as well. 48:04 48 minutes, 4 seconds And if you look at it uh this year we're broadly on track for delivering that sort of organic margin improvement that we had talked about earlier. 48:14 48 minutes, 14 seconds Yes. So in uh 20 going to more like 23 24% over 3 to four years time. 48:23 48 minutes, 23 seconds That is definitely our aspiration. 48:26 48 minutes, 26 seconds All right. Thank you. Uh this is uh very very helpful. Is there uh this sounds uh 48:35 48 minutes, 35 seconds pardon my saying so but almost a bit mathematical. Uh is there any risk of 48:42 48 minutes, 42 seconds something slipping off our eyes and uh kind of giving us a root surprise? I 48:49 48 minutes, 49 seconds mean if something is to go wrong in this picture what could it possibly be? 48:58 48 minutes, 58 seconds I mean I think u those the sort of industry or uh overall macro risks are 49:05 49 minutes, 5 seconds always going to be there. So in that sense you know things that we could control obviously we feel bullish about 49:12 49 minutes, 12 seconds executing on the business. Um you know I think it comes down to some of these key product launches that we have planned. 49:21 49 minutes, 21 seconds uh to the extent that those get delayed or have any regulatory hiccups uh I think those are the kinds of risks that 49:28 49 minutes, 28 seconds I would potentially look at that could uh have some disruption to the overall guidance but barring that I think uh 49:36 49 minutes, 36 seconds other than any geopolitical or macro risks uh we should be in line with uh sort of the guidance that we're 49:43 49 minutes, 43 seconds providing I mean just to add to that on a lighter ve you know Vick what really happens we don't have any presence 49:51 49 minutes, 51 seconds significant presence in US to that extent you know we don't worry about on which side of the bed you know Mr. Trump the president gets up. So, so to that 50:00 50 minutes extent we are possibly better place to do than the peer group and the business you know so well spread like you know 50:07 50 minutes, 7 seconds domestic emerging Europe and Canada so all all things you know going wrong well I don't know it can still happen 50:15 50 minutes, 15 seconds but at the same time when you compare with the peer group you know I feel good about you know what we are doing but I don't have a crystal ball anything can 50:23 50 minutes, 23 seconds happen. Sure. No, of course. On that note, thank you so much and uh uh very 50:31 50 minutes, 31 seconds best of the wishes. I think from the IPO time with some amount of initial tentiveness, but I think Mure is now 50:40 50 minutes, 40 seconds finding firm feet and moving forward in a very nice way. So congratulations to you Satishai and to the entire Mure 50:49 50 minutes, 49 seconds team. Sh I very much appreciate you know your sentiments and your support you know means a lot to all of us uh to me 50:57 50 minutes, 57 seconds as a person to family and all all of us who are sitting over here. Thanks. Thank you. 51:06 51 minutes, 6 seconds Thank you. Next question comes from the line of forum Parik with Bob Capital Markets. Please go ahead. 51:14 51 minutes, 14 seconds Thank you for the opportunity and um congrats on a good set of numbers. My first question is on the domestic side. 51:22 51 minutes, 22 seconds We mentioned that our inlicens portfolio is six to 7% of the total sales and probably low to mid double digit of the 51:31 51 minutes, 31 seconds contribution of the domestic sales. So my question is do we have any threshold limit that beyond this the in licensing 51:39 51 minutes, 39 seconds portfolio should not exceed and as a result our gross margins should be protected at a particular you know 51:46 51 minutes, 46 seconds percentage or should not fall beyond a certain percentage. 51:55 51 minutes, 55 seconds So first I don't think specifically we're looking as a threshold and all but how we look at as this in licensing is 52:02 52 minutes, 2 seconds that it has to be more strategic and where it makes strategic sense in therapies. So if you look at cardio the whole idea was that with with the sani 52:10 52 minutes, 10 seconds portfolio we become among the top four four five players and we saw a lot of benefits in terms of the portfolio synergies which is what is now playing 52:17 52 minutes, 17 seconds out in the segment. Similarly, diabetes we were not present. We didn't have a significant presence there and we were looking at some glutide coming through. 52:25 52 minutes, 25 seconds So the OD portfolio was in preparation for that. So I think all of these have been more thought through where we think the therapies in licensing not just as a 52:34 52 minutes, 34 seconds top on but where it has a rub on a benefit on our portfolio. Obviously uh when we look at it we uh the whole idea 52:41 52 minutes, 41 seconds is that while yeah in gross gross margins level they are slightly dilutive but at a beta on a synergized basis or 52:48 52 minutes, 48 seconds more importantly on ROC they are much much more healthier. 52:53 52 minutes, 53 seconds Yeah but can you comment on the gross margin percentage I mean something that beyond which we feel that it will not slip. Is there some percentage do we have uh or we can um guide upon? 53:06 53 minutes, 6 seconds I uh rather than talk specifically to the gross margin, I think just to build on what P said, I think for all in licensing arrangements, we would be 53:14 53 minutes, 14 seconds targeting standalone deals with at least a double-digit EBID margin profile and then some aspect of synergies too as a 53:22 53 minutes, 22 seconds rub off to the rest of the portfolio such that we have a combined Ibid margin profile uh that is uh you know in line 53:30 53 minutes, 30 seconds with what we would expect. Um and as Puch said, what's even more important is the return on capital or the free cash 53:37 53 minutes, 37 seconds flow generation in most of these deals that you would have seen. Uh there is little to zero upfront uh payment or 53:45 53 minutes, 45 seconds commitment. And so to have access to these types of portfolios uh that are uh cash flow uh accreative from day one of 53:53 53 minutes, 53 seconds us handling the assignment is something that we think is still good business. 53:59 53 minutes, 59 seconds Sure. Um and uh my second question is on the European side. Uh we believe that 54:06 54 minutes, 6 seconds empathy B has been launched in Italy and fully present in UK. So if you can just guide us how many countries you know are 54:15 54 minutes, 15 seconds we still expecting the launch to be in Europe and therefore the this quarter's growth rate would it be able to mirror uh in the subsequent quarters as well? 54:26 54 minutes, 26 seconds Yeah. So we are there in 23 countries. 54:29 54 minutes, 29 seconds Now the approval has come in but the launch has taken some time. So uh this quarter would be similar to what we did last quarter. We can see growth coming in from the next year onwards. 54:39 54 minutes, 39 seconds Sure that's thank you for taking my questions. 54:45 54 minutes, 45 seconds Thank you. Next question comes from the line of Karthik Bani with Baj. Please go ahead. 54:51 54 minutes, 51 seconds Uh thank you for the opportunity and uh congratulations on a good set of numbers. Uh so my question is on the MR 54:58 54 minutes, 58 seconds productivity after we have uh MRS from Senophi. Uh so what is the current productivity? Um how is the ramp up of 55:05 55 minutes, 5 seconds the MR productivity track and is there any specific therapy area or cluster that is giving us higher PCPM uh than others. 55:16 55 minutes, 16 seconds So our current productivity is about seven and if you compare it to last year we are around 6 6.1 at a similar quarter 55:24 55 minutes, 24 seconds and I think where we obviously seeing a higher productivity in a chronic and women's health segment which you do well for us. 55:35 55 minutes, 35 seconds Okay, thank you. 55:39 55 minutes, 39 seconds Thank you. Next question comes from the line of Amlan Dad with JB Morgan. Please. 55:46 55 minutes, 46 seconds Yeah. Hi sir. Uh some question is regarding the European portfolio. Would it be possible to quantify how much share of revenues is from the bank's 55:54 55 minutes, 54 seconds portfolio? The the one that you acquired in last April. 56:01 56 minutes, 1 second So banks will be right now uh 5 to 6%. It's uh couple of a couple of million dollars that you'll have at the border. 56:11 56 minutes, 11 seconds Okay. And uh on on B, how large would the European market for the product sir? 56:21 56 minutes, 21 seconds Total market be in excess of 100 million I would say. 56:26 56 minutes, 26 seconds Yeah, in excess of 100 million the total market. 56:30 56 minutes, 30 seconds Okay. Okay. Okay sir. That that those are my questions. Thank you. 56:37 56 minutes, 37 seconds Thank you. A reminder to all the participants that you may press. Darren want to ask a question. Next question comes on the line of Paratisha the Cha family office. Please go ahead. 56:47 56 minutes, 47 seconds Yeah, this question is for uh Mr. Taj Shik. Um Mr. Shik, I uh just wanted to 56:56 56 minutes, 56 seconds understand over the next three to five year growth journey and margin journey. 57:02 57 minutes, 2 seconds I had a very good discussion with Satishwan uh Vick and uh Summit. Uh just wanted to 57:10 57 minutes, 10 seconds understand uh in this five year journey uh borrowings which uh today I think uh it 57:19 57 minutes, 19 seconds is uh up to a bit and uh stands at close to 1200 crores. So in five year journey 57:28 57 minutes, 28 seconds what do you think uh the borrowing level would look like? In other words, when do you expect uh the borrowings to be uh 57:36 57 minutes, 36 seconds kind of come off from the balance sheet and uh our fixed assets at about 3,300 57:43 57 minutes, 43 seconds crores with what kind of uh likely intensity these asset block will grow over the next five years? 57:53 57 minutes, 53 seconds Okay. uh we are at 123 crores net debt. 57:57 57 minutes, 57 seconds Uh we are also having an earnout payment of close to around 350 crores coming in the month of May. So that would take us 58:05 58 minutes, 5 seconds close to 1500 crores. We expect this to go off the balance sheet probably in the next 24 months to 36 months. 58:15 58 minutes, 15 seconds Yeah. The earnout payment he's referring to is the final earnout related to the Mantra acquisition which will happen in 58:23 58 minutes, 23 seconds Q1 of next year. And uh again just to reiterate that with that earnout plus the rough 1,200 crores now we anticipate 58:32 58 minutes, 32 seconds that with the uh cash flow generation that we are expecting uh probably by end FY28 58:40 58 minutes, 40 seconds uh we should be cash flow positive barring any other acquisitions that we go in for. Sure. 58:46 58 minutes, 46 seconds And on the uh gross block uh Mr. Shik on the gross block we expect about 300 58:55 58 minutes, 55 seconds to 400 crores addition per year depending on what we get in and all this is without taking into account any acquisitions or anything coming in. 59:04 59 minutes, 4 seconds I think we've been guiding to that 350 to 400 and we foresee that that'll continue for the next two to three years. 59:10 59 minutes, 10 seconds Right. That means over the five years uh gross block probably may expand by 50% 59:16 59 minutes, 16 seconds or thereabouts and uh from 1,500 50 odd cr of borrowing level net 59:25 59 minutes, 25 seconds 26 hopefully by December 28 we should be net date at a zero level. Is that a fair summation? 59:35 59 minutes, 35 seconds Yeah, broadly yes. Okay. Thank you. 59:42 59 minutes, 42 seconds Thank you. The last question comes from the line of Puny Desai with JP Morgan. Please go ahead. 59:48 59 minutes, 48 seconds Yeah. Hi, thanks and congratulations on a strong set of numbers. So just two questions. So firstly on um uh you know 59:56 59 minutes, 56 seconds our international markets growth which has been pretty robust. Um I assume you know this also has seen benefits of 1:00:03 1 hour, 3 seconds favorable currency across markets. So if you could just comment on you know whether we are seeing those benefits uh at our gross margin levels as well and 1:00:11 1 hour, 11 seconds therefore as and when these currencies uh you know normalize over the next few quarters how should we think about our gross margins because our in licensing 1:00:20 1 hour, 20 seconds component probably would continue to grow um you know seni portfolio you know you also have no products so I'm just thinking through you know how should we 1:00:29 1 hour, 29 seconds think about gross margins in that light once the currency normalizes So I think on the currency gross margin 1:00:37 1 hour, 37 seconds side there's not going to be much benefit that you saw because all we also have import that comes in dollar terms where you have the currency hit that you 1:00:44 1 hour, 44 seconds get so netn net I don't think there's significant benefit as a percentage level that you see for us 1:00:52 1 hour, 52 seconds all right and for emputerism b market which you mentioned 100 million euros um if you can also talk about the competitive landscape I understand 1:01:00 1 hour, 1 minute you're the only generic you know approved at this point in time but how do you see competition evolving over the next few years? 1:01:10 1 hour, 1 minute, 10 seconds I think uh competition will come eventually. Um you know but couple of things one is of course uh you know 1:01:17 1 hour, 1 minute, 17 seconds tenders are typically locked in for a couple of years in several countries. So that should give us some benefit and we also believe that the kind of capacity 1:01:26 1 hour, 1 minute, 26 seconds that we have created um you know is probably second to the innovators. So in terms since this is a very high volume 1:01:34 1 hour, 1 minute, 34 seconds product being able to you know consistently ship out these quantities also should hold us in goodstead. So you 1:01:42 1 hour, 1 minute, 42 seconds know while we can't do away or wish away competition I think we will continue to hold a favorable position whenever it comes in. And I think just to add on 1:01:50 1 hour, 1 minute, 50 seconds that product specifically the 100 million plus euros is just a Europe opportunity. We think there's an equally large opportunity when you add up all 1:01:58 1 hour, 1 minute, 58 seconds the rest of world markets where we're also going to be over time launching the product as well. So given the in-house 1:02:05 1 hour, 2 minutes, 5 seconds capacities we have and looking at the potential of these markets, we'll obviously look to capitalize wherever we 1:02:12 1 hour, 2 minutes, 12 seconds can even in the face of some competition that will eventually come. 1:02:18 1 hour, 2 minutes, 18 seconds Thanks for that. And if you could share where are we manufacturing this particular product in which site of ours? 1:02:25 1 hour, 2 minutes, 25 seconds Uh depending on market we have couple of sites. So one of the sites is from Sand and the other site which is servicing a few of the other markets is in Punea. 1:02:38 1 hour, 2 minutes, 38 seconds All right. Thanks so much and all the best. Thank you. Thank you. 1:02:44 1 hour, 2 minutes, 44 seconds Thank you ladies and gentlemen. That was the last question for today. We have reached the end of question and answer session. I would now like to hand the 1:02:52 1 hour, 2 minutes, 52 seconds conference over to the management closing comments. 1:02:55 1 hour, 2 minutes, 55 seconds So thank you all for joining today's investor call. If any of your queries still remain unanswered, we please feel free to get in touch with us. Thank you. 1:03:02 1 hour, 3 minutes, 2 seconds Have a good day. 1:03:05 1 hour, 3 minutes, 5 seconds Thank you. On behalf of Nure Pharmaceuticals Limited, it concludes this conference. Thank you for joining us. You may not be confused.