Emcure Pharmaceuticals Ltd — Q4 FY26

Emcure Pharmaceuticals Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Y74RUlZY4TE Published: 8 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Q4 FI26 earnings conference call of Mure Pharmaceuticals 0:09 9 seconds Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you 0:16 16 seconds to ask questions after the presentation concludes. 0:20 20 seconds Should you need assistance during this conference call, please signal an operator by pressing star bin zero on it 0:27 27 seconds at stone mode. Please note that this conference is being recorded. 0:32 32 seconds I now hand the conference over to Mr. S Paliwal. Thank you and over to you sir. 0:39 39 seconds Uh thank you. Uh good afternoon everyone and welcome to the Q4 FI26 earnings conference call for Mor Pharmaceuticals. 0:48 48 seconds Thank you for joining us today. I am Safali and uh we'll begin today uh with brief opening remarks from the 0:55 55 seconds management and then open the line for Q&A after the committee concludes. Joining me today on the call are Mr. 1:03 1 minute, 3 seconds Satish Mata managing director and CEO, Mr. Tach Shek, chief financial officer, Mr. Samit Mata, full-time director, Mr. 1:13 1 minute, 13 seconds Vikar, president corporate development and strategy and finance and Mr. 1:18 1 minute, 18 seconds Fishnahar, executive vice president, corporate development strategy. 1:24 1 minute, 24 seconds We hope you have had an opportunity to review the financial results, the results presentation and the press release that were released earlier. 1:33 1 minute, 33 seconds Before we start, I would like to remind everyone that this call is being recorded. 1:38 1 minute, 38 seconds I also need to remind everyone about the safe harbor linked to today's call. 1:43 1 minute, 43 seconds Certain statements made during the call may be forward-looking in nature. These statements are in b are based on our current expectations, assumptions and 1:52 1 minute, 52 seconds management's view as of today. Actual results may differ materially due to range of factors including market conditions, regulatory developments, 2:00 2 minutes competitive dynamics, operational factors and other risks and uncertainties. 2:05 2 minutes, 5 seconds For additional details, please refer to our earnings presentation and press release. 2:10 2 minutes, 10 seconds I'll now hand the call to Mr. Meta to begin his opening remarks. Over to you, Mr. Meta. 2:15 2 minutes, 15 seconds Thank you, sir. And uh good afternoon all of you or B say I would like to thank you for joining us to review MQs 2:25 2 minutes, 25 seconds Q4 and FY26 results. It means a lot that you have found time you know to join me. 2:31 2 minutes, 31 seconds FY26 marked the start of our 5-year strategy focusing on turning last year's 2:38 2 minutes, 38 seconds operational changes into measurable outcomes. 2:43 2 minutes, 43 seconds I'm very happy to tell my investors that we crossed a major milestone this year, surpassing $1 billion in revenue and 2:52 2 minutes, 52 seconds having a growth of 16.6% yearon-year increase, exceeding the guidance row that we had given to you. 3:00 3 minutes We also increased our base business a bit of margins by over 100 basis points and our adjusted 3:10 3 minutes, 10 seconds PAT grew more than 40%, I repeat, our adjusted PAT grew more than 40%. 3:18 3 minutes, 18 seconds This outstanding results give us confidence that the investments we are making in our people, 3:26 3 minutes, 26 seconds our people are very important, our processes and I always keep telling you know whenever I have been on the call 3:33 3 minutes, 33 seconds that we take pride in telling everyone that ENRO has been built on science, technology and innovation and technology including the adoption of AI across key 3:42 3 minutes, 42 seconds functions are obviously starting to deliver. I'm very happy to say that. 3:48 3 minutes, 48 seconds Turning to key strategic highlights from the year. Let me now focus on portfolio expansion. That's the first thing you 3:55 3 minutes, 55 seconds know I would like to take up. We strengthened our portfolio in core markets through in licensing, M&A and internal R&D. 4:06 4 minutes, 6 seconds I would now like to highlight three notable partnerships you know that we had in the year you know that have 4:13 4 minutes, 13 seconds ended. I'm focusing on a licensing to begin with. The first part that we had with Nois, we also spoke last time and 4:22 4 minutes, 22 seconds very happy to inform my investors that Enkor was selected as the exclusive India partner for Pista, a patented RDNA 4:31 4 minutes, 31 seconds biologic semlide. These are the products that we have seen in the market of synthetic. This is RDNA biologic semlide which I would like to emphasize. 4:40 4 minutes, 40 seconds strong exclusive global data and established device distinguishes from the generic switch which have been 4:47 4 minutes, 47 seconds which have been introduced. The initial update has been promising especially 4:53 4 minutes, 53 seconds after the price cut in April 2026 and uh I must say you know the pricing you know which has been done is very 5:01 5 minutes, 1 second competitive and we obviously have a a story and strategy. We aim for steady growth through FI27. 5:11 5 minutes, 11 seconds After noon or the second in licensing that I would like to focus on is Seni. 5:16 5 minutes, 16 seconds We expanded our partnership to include their oral antid-diabetes brands amaril and cetaphine boosting our position in 5:25 5 minutes, 25 seconds cardiac and metabolic therapies. With this MQ is amongst the leading cardiac players and thanks to Amaril and Safarin 5:34 5 minutes, 34 seconds we also have now a reasonably good strong foothold in the metabolic space as well. The third partnership has 5:42 5 minutes, 42 seconds happened and we virtually started building you know from 1st of April we signed a distribution agreement for select nephrology and transplant 5:49 5 minutes, 49 seconds medication in India which has widened our offerings in the therapy. It will not be out of place to mention that we 5:57 5 minutes, 57 seconds have a reasonably strong position in the field of nephrology. We are one of the top five companies and to that extent you know this portfolio will obviously 6:04 6 minutes, 4 seconds help us to augment our position in the field of nephrology going forward. These alliances 6:11 6 minutes, 11 seconds with leading pharmaceutical companies demonstrate our strong commercial capabilities and scale in the India market. India market means a lot to us. 6:22 6 minutes, 22 seconds Now after having spoken about in licensing I would now talk about M&A and portfolio consolidation. 6:29 6 minutes, 29 seconds As far as Zoendas is concerned we completed minority stake buyout for full consolidation and expect operational 6:36 6 minutes, 36 seconds synergies to play out over a period of time. Globally we acquired the M's portfolio in the UK 6:46 6 minutes, 46 seconds uh to grow our uh UK business and European business as well and QT we recently acquired in Canada enhancing our derma range along with MQIPS. 6:58 6 minutes, 58 seconds Let me now focus on uh our R&D and pipeline updates. I spoke about in licensing. I spoke about uh M&A and 7:07 7 minutes, 7 seconds portfolio consolidation. Now let me turn on what has been happening in our R&D and pipeline and which will take a lot 7:13 7 minutes, 13 seconds of stride. Time for V remains a key uh near-term focus. We launched in select 7:20 7 minutes, 20 seconds European markets in H2 FI26 and ex and intend expanding the Europe and rest of 7:26 7 minutes, 26 seconds the world markets in FY27 for Vasumarelic Biosimilar for Vet AMD. We received 7:35 7 minutes, 35 seconds endorsement from Siri subject expert committee and we plan to launch in H1 7:42 7 minutes, 42 seconds FYI27 pending approval. The third important thing is in the field of HIV where my 7:49 7 minutes, 49 seconds company enjoys a poll position. We are one of the six global voluntary licenses 7:56 7 minutes, 56 seconds for Gilead Lena. We have filed EMF and expect to seek expect to seek product registration in FY27. 8:07 8 minutes, 7 seconds Our scientific advisory committee is shaping our long-term pipeline in four areas. Four areas. Let me uh focus 8:16 8 minutes, 16 seconds on these four areas. One is complex injectables. Second is biosimilars. 8:22 8 minutes, 22 seconds Third is new delivery routes for existing drugs. And something you know which we have been talking for last you know couple of uh calls as well is antibbody drug conjugates. 8:33 8 minutes, 33 seconds Now having focused on uh in licensing merger and acquisition portfolio consolidation and having given you some 8:41 8 minutes, 41 seconds flavor about R&D and our pipeline updates. Let me now turn my attention to business performance. As far as the year 8:51 8 minutes, 51 seconds you know which has just ended FY26 we grew by 16.6% to 9204 crores 9,204 crores with a 9:01 9 minutes, 1 second resilient domestic performance and strong international performance. Now let me focus you know as far as business 9:09 9 minutes, 9 seconds performance is concerned to focus on domestic business which is very close to my heart. Domestic business grew by 10% 9:16 9 minutes, 16 seconds in FY26 to 4,027 crores 4027 crores led by women health cardiac CNS and oncology. 9:27 9 minutes, 27 seconds I mean as far as Q4 is concerned yes I will admit first person to admit it was softer mainly due to Zenta's portfolio 9:36 9 minutes, 36 seconds and team reorganization causing higher attrition. As you know that we acquired the minority stake in so there was 9:44 9 minutes, 44 seconds attrition but integration and new leadership hires have addressed these issues and I'm very happy to say that as 9:52 9 minutes, 52 seconds far as April is concerned it's absolutely as per the plan it is on track so nothing to really worry as far as Juventus is concerned going forward 10:01 10 minutes, 1 second new therapy areas about which you know we spoke last time as well derma andics consumer health diabetes are scaling 10:10 10 minutes, 10 seconds Oistra no mortgages partnership shows promising early uptake especially after the uh price of a very uh price so we 10:19 10 minutes, 19 seconds are in soft spot you know as far the pricing is concerned and we do expect reasonable growth in FY27 10:26 10 minutes, 26 seconds I'm very happy to inform that as far as the field productivity is concerned it has gone up from 5.4 four lakhs per 10:34 10 minutes, 34 seconds medical representative to seven lakh per person over a period of last two years. So obviously good things are happening. 10:41 10 minutes, 41 seconds As far as international markets are concerned, I'm very happy to inform that revenue grow by 22% to 5,177 10:50 10 minutes, 50 seconds crores in FY26. 5177 crores in FY26. 10:55 10 minutes, 55 seconds you know stronger strong wasteland business growth and successful launches with max integration Canada posters 11:03 11 minutes, 3 seconds solid growth or market share gains and new launches rest of the world deliver healthy growth across non ARV and ARV 11:12 11 minutes, 12 seconds with non ARV supporting revenue diversification and ARV maintaining a strong order book 11:20 11 minutes, 20 seconds I think as you know non ARV business is very important and that's a function of the registration that we get in the various markets. So 11:28 11 minutes, 28 seconds we got reasonably good to know registrations. So we are very bullish as far as the international markets are 11:34 11 minutes, 34 seconds concerned going forward. EITA margins improved year on year due to operating leverage across both domestic and 11:43 11 minutes, 43 seconds international markets. Now having talked about you know the year which has ended. 11:48 11 minutes, 48 seconds Now let me uh focus on outlook and growth levers you know as far as FY27 is concerned that's what I would like to 11:56 11 minutes, 56 seconds focus having spoken about the uh business you know for the year which has just ended uh I talked about the first year of our 12:05 12 minutes, 5 seconds strategic science you know where we have delivered the results and we have been focusing on execution about whatever we 12:12 12 minutes, 12 seconds decided in the beginning of the year and now as far as the second year of our strategic plan is concerned Uh I am very happy to inform my 12:20 12 minutes, 20 seconds investors and your presence means a lot to me that Encur is very well positioned for strong performance going forward. 12:28 12 minutes, 28 seconds Our growth drivers at different stages. 12:31 12 minutes, 31 seconds The first growth drivers is obviously going to be domestic market. I'm very happy to say that we have a very strong 12:39 12 minutes, 39 seconds team and portfolio which will drive better than industry growth ahead especially in cardio diabet biologics 12:46 12 minutes, 46 seconds women health and new initiatives. I've been I've been leading this domestic initiative for last 30 years and I feel good about the team you know which we 12:54 12 minutes, 54 seconds have built up in last few months and I feel good about the domestic market going forward. Then the second lever of growth will be semiglutide partnership. 13:03 13 minutes, 3 seconds Thenex the dharma product you know that we have launched and of course you know the consumer business earth which is 13:10 13 minutes, 10 seconds showing you know good uh uptake. It's it's stabilizing reasonably well are in initial stages of scale up and we expect 13:19 13 minutes, 19 seconds returns from this to build over a period of next few years and all these areas you know are growing areas like as far as Dharma is concerned that's a growing 13:27 13 minutes, 27 seconds market of 14,000 crores and there because of the strategic initiatives that we are taking we are bullish and earth of course we are doing well under 13:35 13 minutes, 35 seconds leadership of Manita then Canada and Europe we expect growth to continue led by market share gains new launches and 13:43 13 minutes, 43 seconds expanded portfolio Canada and Europe will continue to grow. The fourth lever is anthropus in B and we expect in the 13:51 13 minutes, 51 seconds current year uh anthroposis in B should make significant contribution in FY27 on the back of registrations you know that 13:59 13 minutes, 59 seconds we are receiving from different geographies both regulated as well as emerging markets. So in rest of the 14:06 14 minutes, 6 seconds world markets we expect sustained growth led by non ARV pipeline and robust ARV 14:14 14 minutes, 14 seconds order book FY27 we project low to mid-in revenue growth 14:22 14 minutes, 22 seconds and as I have been explaining in last meet and the few calls so that I have had the privilege of uh addressing to 14:29 14 minutes, 29 seconds you guys that margin expansion will happen as committed between 75 to 100 14:36 14 minutes, 36 seconds basis points going forward assuming stable regulations and macroeconomic 14:43 14 minutes, 43 seconds conditions. I think this is based on the assumptions that there will not be a major upheaval or problems at the 14:51 14 minutes, 51 seconds geopolitical level. So I think you know overall overall we are quite uh 14:58 14 minutes, 58 seconds optimistic optimistic and bullish about the business as far the second year of the execution of the plan is concerned. 15:05 15 minutes, 5 seconds In closing, I would like to tell my investors that our strong performance 15:13 15 minutes, 13 seconds highlights our strong performance highlights our diversified business model, India manufacturing, 15:21 15 minutes, 21 seconds scientific strengths, focus on science, innovation, technology and more than anything else one area on which we are 15:29 15 minutes, 29 seconds hugely focused is on execution because that's one area Whereas uh we will distinguish with we'll make a 15:37 15 minutes, 37 seconds distinction when you compare you know or distinguish ourselves when we cons compare with other companies. The focus will be on execution going forward. 15:47 15 minutes, 47 seconds Our priorities are clear and priorities are absolutely well defined. Achieve sustainable above industry growth very 15:55 15 minutes, 55 seconds important both in domestic and other market. The second area uh as far as execution is going to play a very important role is to expand margins that 16:04 16 minutes, 4 seconds is very important going forward. Get the synergies on account of the scaling of the business flow that is happening and 16:12 16 minutes, 12 seconds create long-term value for my stakeholders. It's very very important that my stakeholders at at is the is at 16:20 16 minutes, 20 seconds the core of the strategies you know that will be formulating and I'm extremely conscious of the fact that you have reposed faith in me and my company to 16:28 16 minutes, 28 seconds that extent that will always remain at the back of my mind as we execute our policies though going forward again I 16:38 16 minutes, 38 seconds would like to re reiterate that encuredriven portfolio and record delivering complex products 16:45 16 minutes, 45 seconds set us apart. We are different because know we are focusing on technology. So our complex policy products will set us 16:53 16 minutes, 53 seconds apart. Our ongoing investments will be in people, products, processes and 17:00 17 minutes partnership position and partnerships so that we have position us for growth and profit profitability across all 17:08 17 minutes, 8 seconds geographies as it India, Canada, Europe and rest of the world as we progress through our strategic uh plan. uh so so 17:18 17 minutes, 18 seconds I think you know as far as going forward is concerned the focus will be on growth growth and growth and obviously you know 17:25 17 minutes, 25 seconds improving the margins that's something that we have and that's how you know we will go now I would also uh like to 17:35 17 minutes, 35 seconds thank you all uh uh and all my insurans you know for uh our unstinted support 17:42 17 minutes, 42 seconds you know they have given us and we are very proud of that and I would also like to thank all our shareholders for deposing faith in us and partners you 17:51 17 minutes, 51 seconds know for their absolutely unstinted support which means a lot to me as an individual at this point of time in my career and that's the biggest capital 18:00 18 minutes that I have and I intend building on it for my shareholders and my partners going forward to deliver results you 18:08 18 minutes, 8 seconds know uh better results year after year uh thank you for uh giving me patient hearing uh your support means a lot to 18:17 18 minutes, 17 seconds us all of us. Now I will hand over to Taj our CFO reviewing the Q4 and FY26 financial. Taj over to you. 18:29 18 minutes, 29 seconds Good afternoon everyone. I will take you through the key financial highlights for the fourth quarter and the full year FI26. 18:36 18 minutes, 36 seconds I'll be discussing all comparison on a year-on-year basis. Starting with the fuel for performance revenue from 18:43 18 minutes, 43 seconds operations for the quarter grew by 16.7% to 2470 crores up by 16.7%. 18:52 18 minutes, 52 seconds The domestic business grew by 5.2% to 977 crores due to softness in zuences arising from the recently concluded 19:00 19 minutes minority state transaction and related leadership changes and team and portfolio reorganizations. 19:07 19 minutes, 7 seconds International markets maintained their strong growth momentum with revenues growing 25.7% to 1,493 growers. 19:16 19 minutes, 16 seconds Europe reported revenues of 538 growers, a growth of 35.8%. 19:22 19 minutes, 22 seconds With base business, banks and amputation be scaling up being contributing factors. 19:28 19 minutes, 28 seconds Canada reported a 28.6% growth with revenues increasing to 399 crores led by market share gains and new launches. 19:37 19 minutes, 37 seconds Emerging markets grew 15.5% to 556 crores with both ARV and non ARV seeing strong growth. 19:46 19 minutes, 46 seconds Gross margins for the quarter stood at 59.4% versus 57.8% in quarter 4 of FI25 up 160 bits because of a better business 19:55 19 minutes, 55 seconds mix especially new launches in international markets. 19:59 19 minutes, 59 seconds IDA excluding other income grew 24.5% to 485 crores. 20:06 20 minutes, 6 seconds margins improved to 19.7% from 18.4% in Q4 of FI25 and 19.5% in Q3 of FI26 20:14 20 minutes, 14 seconds supported by operating leverage and productivity gain being partly offset by Sanopi O contribution. 20:21 20 minutes, 21 seconds Depreciation and amotization for the quarter was 106 crores. Interest cost was 46 crores. 20:28 20 minutes, 28 seconds During the quarter, we also booked an exceptional expense of 43 crores related to mantra earnout being higher than initial expectation due to better 20:36 20 minutes, 36 seconds performance achieved. This was partly offset by reversal of 12 crores due to reassessment of new lobo code related liabilities. 20:44 20 minutes, 44 seconds Excluding the impact of exceptions, the effective tax rate at 25.4% for the quarter. 20:52 20 minutes, 52 seconds Consequently, reported PAT for the quarter was 244 crores with a PAT margin of 9.9%. 21:00 21 minutes Adjusted PAT came at 279 crores showing strong growth of 36% year-over-year with PAT margin of 11.3% which was up 160 business. 21:13 21 minutes, 13 seconds Net debt as of 31st March 2026 stood at 1,54 crores. The increase in debt over the last year has primarily been because 21:21 21 minutes, 21 seconds of payout of for banks as well as minority stake acquisition. 21:27 21 minutes, 27 seconds Moving to the annual performance for FI26, revenue from operations grew to 9,204 crores, a strong growth of 16.6%. 21:37 21 minutes, 37 seconds Domestic business grew to 4,027 crores, representing a growth of 10%. 21:44 21 minutes, 44 seconds International markets performed well with revenues growing 22.2% 2% to 5,177 crores driven by strong performance across EU, RO markets and Canada. 21:55 21 minutes, 55 seconds EU was the strongest performer with revenues growing 25.5% to 1,850 crores. 22:01 22 minutes, 1 second RV markets scaled up to 1,840 crores delivering a 21.8% growth. Both ARV and 22:08 22 minutes, 8 seconds non non ARV verticles contributed to the strong performance. 22:13 22 minutes, 13 seconds Canada grew 18.7% to 1,487 crores through base business growth and new launches. 22:21 22 minutes, 21 seconds Gross margins for FY26 stood at 60.3% up 20s. 22:27 22 minutes, 27 seconds The bida for the year was at 1,789 crores growing 21.8% from 1,469 crores in FI25. 22:36 22 minutes, 36 seconds The bida margins improved 80 bits to 19.4% 4% reflecting improved utilization and productivity gain. The IBITA margin 22:45 22 minutes, 45 seconds improvement is despite increase in R&D investments during the year. R&D investment stood at 383.5 crores for FI26 corresponding to 4.2% of revenue. 22:57 22 minutes, 57 seconds This was an increase of 50 bits year-over-year. 23:01 23 minutes, 1 second Depreciation and amotization grew to 415 crores from 384 crores in FI25. 23:07 23 minutes, 7 seconds Excluding exceptional and one-time impact, our effective tax rate for FI26 was 26%. 23:15 23 minutes, 15 seconds Reported PAT was 941 crores with PAT margin of 10.2%. 23:20 23 minutes, 20 seconds PAT adjusted for exceptions was 1,8 crores reflecting a growth of 41%. 23:26 23 minutes, 26 seconds Adjusted pack margin stood at 10.9% up by 189 bits. 23:32 23 minutes, 32 seconds With that, I will now open the floor for questions. 23:38 23 minutes, 38 seconds Thank you very much. We will now begin with the question and answer session. 23:43 23 minutes, 43 seconds Anyone who wishes to ask a question may press star and then one on the touchstone telephone. If you wish to 23:50 23 minutes, 50 seconds remove yourself from the question queue, you may press star and then two. 23:55 23 minutes, 55 seconds Participants, you are requested to use while asking a question. 24:00 24 minutes Ladies and gentlemen, we will wait for a moment while the question ends. 24:09 24 minutes, 9 seconds A reminder to all, you may press star and then one on the Touchstone Telephone to ask a question. 24:26 24 minutes, 26 seconds We will take the first question from the line of ARI from JM Conan. Please go ahead. 24:33 24 minutes, 33 seconds Yeah, thank you so much for giving me an opportunity and congrats to the management of good set of members. So the first question I have on India 24:41 24 minutes, 41 seconds business uh we have delivered around 5% growth this quarter. uh I understand there are the impact. Is it possible uh 24:49 24 minutes, 49 seconds to quantify this impact and uh does it seem that since there is a acclusion and all what you mentioned uh the next few 24:57 24 minutes, 57 seconds quarters year on year growth could be affected on account of this restructuring. 25:04 25 minutes, 4 seconds Sure. Thanks A. So I think just to give the context right as you know we took over the Zuventes in 25:12 25 minutes, 12 seconds end of Q2 early Q3 we had got a new management team and I think Q4 is when we did the restructuring of the whole team and portfolio out there. So most of 25:21 25 minutes, 21 seconds the uh slow growth that you are seeing is because of that. I think X of Zent the Zventus impact for the full year we 25:29 25 minutes, 29 seconds would have been close to the 9 10% based business growth that we have been talking about that we delivered even in the first 9 months. So majority of the 25:37 25 minutes, 37 seconds decline that you've seen in Q4 was led by Zentus. I think uh the restructuring was a mix of uh portfolio restructuring 25:44 25 minutes, 44 seconds team refocus and which led to a higher attrition. uh we don't think the impact lasts for the full year for FI27 what we 25:53 25 minutes, 53 seconds do expect is we continue to growing above industry and as uh the C had mentioned even in his opening statement 26:00 26 minutes April we are now recovering back on Hello. 26:17 26 minutes, 17 seconds Yeah, go ahead. I think we lost. 26:22 26 minutes, 22 seconds Due to no response from the current participant, we will take the next question. We have the next question from the line of Tushar Mani. Please go ahead. 26:33 26 minutes, 33 seconds Thanks for the opportunity. Am I audible? Yes. Yes. 26:39 26 minutes, 39 seconds But as far as international market is concerned, uh if you could just share how much would have been the constant currency growth for each of the segment 26:46 26 minutes, 46 seconds um Europe, Canada market that's my first question for the quarter. 26:52 26 minutes, 52 seconds Sure. So I think the overall for international market the currency impact was about that 7 to 8%. that we had. So 26:59 26 minutes, 59 seconds it was slightly higher more about closer to 11 12% in Europe while Canada and emergence was slightly lower. 27:08 27 minutes, 8 seconds Got you. So then considering um considering even let's say constant currency growth of Europe to the tune of 27:16 27 minutes, 16 seconds almost 20% uh for the quarter and then we have niche product uh uh scaleup that 27:23 27 minutes, 23 seconds happening in Europe. So uh what kind of you know outlook uh one can think for for next uh two years 27 28. 27:34 27 minutes, 34 seconds Sorry uh you mentioned but we talking about the overall international markets or no I I was refering particularly for euro like even adjusting for the 27:42 27 minutes, 42 seconds constantly the growth has been great with a good scale up in such a niche product. So just was trying to understand the output for 28 for Europe. 27:54 27 minutes, 54 seconds Yeah. So I think in the near term the growth we do expect it to be stronger in Europe especially as AMO gets launched up but yeah once it reaches the scale. 28:02 28 minutes, 2 seconds So I think over the next two years we do still expect maintenance of growth in the European as a cave 28:10 28 minutes, 10 seconds and that should help to get better gross margins as well. At least for Q4 it is not getting reflected compared to Q3 28:18 28 minutes, 18 seconds uh despite improvement in the overall international business process. 28:23 28 minutes, 23 seconds So I think how so if you look at it among the business itself right usually domestic is a higher GC business versus international. Now if you look at it 28:32 28 minutes, 32 seconds despite the domestic being slightly softer in Q4 our overall GC has improved Q on Q. So some of that is reflecting 28:39 28 minutes, 39 seconds out. I think for the polar we do expect GCS to remain around that 60% point. So 28:48 28 minutes, 48 seconds I understood I understood and just uh lastly on the domestic play what kind of industry growth you think would be there 28:56 28 minutes, 56 seconds for say uh FI27 I think we continue to expect industry 29:03 29 minutes, 3 seconds growth to be around that 8 to 9% order and for us the target as you said the target for us is to grow faster than 29:11 29 minutes, 11 seconds industry load Understood. 29:17 29 minutes, 17 seconds Thanks. That's it. 29:23 29 minutes, 23 seconds Thank you. We will take the next follow-up question from the line of Amayalki from JM Mansion. Please go ahead. 29:30 29 minutes, 30 seconds Yeah. Am I audible now? 29:33 29 minutes, 33 seconds Yeah, you're able. Yeah, thank you so much. I did have one followup question on the vent. So, what kind of operational synergies do you expect in 29:41 29 minutes, 41 seconds the vents? like will it improve our India margin? Are you going to consolidate our uh like a common molecule grants which are present in 29:48 29 minutes, 48 seconds both the entities uh like or the MR field force are you going to cut it down so that that could improve the profitability any color on that would be 29:57 29 minutes, 57 seconds helpful. So basically let me tell you that uh as far as we are concerned on Zulantus is a different segment all together just to give you a flavor as 30:06 30 minutes, 6 seconds far as ENC is concerned essentially focuses on gymic uh cardio and metabolic you know that's what we do as far as 30:18 30 minutes, 18 seconds sorry to interrupt sir if you're speaking you're not audible Hello. 30:29 30 minutes, 29 seconds Sir, you're not. 30:29 30 minutes, 29 seconds Yeah, I think we lost I I think we lost the CEO. Can you guys hear me? This is Vic. Uh, yes, I can hear you, sir. 30:38 30 minutes, 38 seconds Yeah, I may. Um, I'll try and take a stab until Satisha is able to join back in. Um, I think the synergies are going 30:45 30 minutes, 45 seconds to be more in terms of how we're organized on the sales and marketing efforts. I think what Savich was trying to highlight that given uh these two 30:54 30 minutes, 54 seconds segments uh still cater to very different therapeutic segments on the manufacturing synergies it's less because we have plants that are catering 31:03 31 minutes, 3 seconds to you know specific sets of products on both sides but definitely on some of the sales and marketing and related support 31:11 31 minutes, 11 seconds functions that's exactly some of the restructuring efforts that are underway to be able to synergize and get some 31:17 31 minutes, 17 seconds operating leverage uh in the sales and marketing aspects of the Zventus business. 31:28 31 minutes, 28 seconds A does that answer your question? 31:38 31 minutes, 38 seconds Ladies and gentlemen, the line for the management has been disconnected. Please stay connected while we join them back. 31:46 31 minutes, 46 seconds [music] 31:51 31 minutes, 51 seconds [music] 31:55 31 minutes, 55 seconds [music] 32:03 32 minutes, 3 seconds [music] 32:08 32 minutes, 8 seconds [music] 32:13 32 minutes, 13 seconds Ladies and gentlemen, the line for the management has been connected. We will take the next participant. We have the next question from the line of Bansi from JP Morgan. Please go ahead. 32:24 32 minutes, 24 seconds Yeah, thanks. Um uh so just two questions from my side. Uh firstly on India, if you can just help us 32:31 32 minutes, 31 seconds understand uh slightly more in detail as to how the acquisition of minority stake um you know affected the vuventus 32:39 32 minutes, 39 seconds portfolio uh and the iteration. Uh the second uh you know part to it is that you know of our total MR count um you 32:48 32 minutes, 48 seconds know what percentage of field force is for zuventus and you know what is the kind of restructuring we saw there. 32:57 32 minutes, 57 seconds Sure. Uh so I think what happened along with the minority stake what we also had was the management big change in the 33:05 33 minutes, 5 seconds management team right so Mr. A was leading that business since the inception. He stepped he stepped down and we had a new team coming in and I 33:13 33 minutes, 13 seconds think when the new management came in we also had a recast the whole portfolio the team structure that we had. I think similar something similar to what we did 33:21 33 minutes, 21 seconds in the cardio diabetic when we took over the cenopi and restructured the teams for uh which division was going to which 33:27 33 minutes, 27 seconds therapies what is the focus that is what that we took over in post that I think with the management change and all that 33:35 33 minutes, 35 seconds research that is what led to a higher attrition in the field and as you know a cured is largely a short-term treatment right so if you have a gap in the field 33:43 33 minutes, 43 seconds it does lead to a much higher sales drop than what you will see in a normal chronic business for uh coming to a question on the field force about 40% of the field force is in Juventus for us. 33:54 33 minutes, 54 seconds Oh okay. And and what percentage of this 40% would have seen you know uh you know 34:00 34 minutes restructuring or you know change in MRS so I think we structured the whole so about uh so difficult for number but the 34:10 34 minutes, 10 seconds attrition would have been so normally if you look at it attrition is about 20 to 30%. The quarter we had a much higher attrition out there. 34:17 34 minutes, 17 seconds Well, but having said that and yeah, it's not just the attrition, it's also restructuring of couple of the 34:25 34 minutes, 25 seconds divisions and the products. So, I think it's not just the attrition aspect, it's also, you know, um being repurposed. So, 34:32 34 minutes, 32 seconds there is a little bit of disruption related to that that happens normally as part of any such exercise. So I think all in all what we're trying to 34:40 34 minutes, 40 seconds highlight is that that was something carried out towards the end of Q3 and in Q4 but is starting to pay us dividends 34:48 34 minutes, 48 seconds in the sense that for April as the CEO mentioned uh we are right on target in terms of our own internal expectations 34:56 34 minutes, 56 seconds for Zvente. So we're very happy with the progress that we're seeing particularly over the last 45 to 60 days. 35:04 35 minutes, 4 seconds Um all right just if you can uh call out what is our um MR strength as of today. 35:13 35 minutes, 13 seconds Yeah. So about yeah close to 4,000 close to 4,000. 35:17 35 minutes, 17 seconds Okay. Um the reason why you know I asked these questions is that you know at least with you know some of your peers what we've seen is that uh on the acute 35:26 35 minutes, 26 seconds side you know when we see such restructuring you know of uh you know uh fle force uh it does take a while you 35:34 35 minutes, 34 seconds know for the productivity to show up because as you highlighted you know this is u you know short-term treatment you know a lot of it is based on your 35:42 35 minutes, 42 seconds relationship with doctors etc. So you know that is the reason why you know I was trying to check but you know it's it's good to know that you know you're mentioning that you're already seeing 35:50 35 minutes, 50 seconds improvement in the month of April. So we we basically should not expect this to sustain right in terms of impact going into the next quarter. 36:00 36 minutes Yeah, we'll be back on track and again the other thing you know that I would like to say that as considered over a period of time you know we have built some very 36:08 36 minutes, 8 seconds strong brands you know so that should also take us through though we are in active but at the same time some very strong brands so I I think you know 36:16 36 minutes, 16 seconds that's how you know Vic was mentioning some time back right from onwards know we are on track and every reason to believe you know that things will get 36:24 36 minutes, 24 seconds better by the way all right and second question um just on our employee expenses. Um, you know, this year we've probably grown at about 36:32 36 minutes, 32 seconds uh 7 odd percentage. Um, should we assume this run rate to continue? Yeah, we expect it to be around 10%. 36:41 36 minutes, 41 seconds Okay, next year. Understood. Understood. 36:44 36 minutes, 44 seconds I'll get back in the Thank you. We will take the next question from the line of D Pak from B2 Capital. Please go ahead. 36:56 36 minutes, 56 seconds Yeah, thank you. Um so just carrying forward on domestic growth. So uh for April can you confirm like with Zuventus 37:05 37 minutes, 5 seconds the growth is in line with the market or it is still below market growth including Zuventus in the month of April. 37:16 37 minutes, 16 seconds So there is I I don't think we'll comment on monthly growth and all but as CEO mentioned right I think versus what we have targeted out we are fully on 37:24 37 minutes, 24 seconds track for that. I think we once we have a quarter that's when we talk about the full year the quarter growth. 37:29 37 minutes, 29 seconds Okay. And in Q4 did you say that X of Zuventus the growth was high single digit? Did I hear that right or something like that? 37:37 37 minutes, 37 seconds I think huh what we said is X of Zuventus for the full year we would have been that high single digit growth 37:43 37 minutes, 43 seconds for the full year and in Q4 Q4 would have been about 78%. 37:49 37 minutes, 49 seconds 78%. All right. Okay. Thank you. 37:55 37 minutes, 55 seconds Thank you. We will take the next question from the line of Bino from Ara Captain. Please go ahead. 38:04 38 minutes, 4 seconds Hi. Uh good afternoon. Just a quick question. Uh you had recently licensed these nefro brands from those. Uh could 38:11 38 minutes, 11 seconds you give a sense of what uh is the annual revenue run rate for those brands and also what sort of upfront payment have you made? 38:21 38 minutes, 21 seconds So you know uh there's no upfront payment that we have made for this right I think similar to all the other in licensing we have done there is no 38:28 38 minutes, 28 seconds upfront payment out here the portal is the small account only two three times so it can be less than 50 cr analyzed 38:36 38 minutes, 36 seconds understood and uh that we have a reasonably strong presence in necroy we ourselves are a 38:44 38 minutes, 44 seconds strong condition so uh it should help ro it should help Got it. Um and a quick question on your 38:52 38 minutes, 52 seconds guidance of low to mid team growth. Um what sort of currency assumptions have you made? Uh does that include the benefit of uh depreciation of INR? 39:04 39 minutes, 4 seconds So I think the currency assumption what you're building is a currency of average currency of 92 USDR. 39:11 39 minutes, 11 seconds 92 USD. Okay. Yeah. Got it. Thank you. 39:19 39 minutes, 19 seconds Thank you. We will take the next question from the line of Sudhhat Nandhi from CWC. Please go ahead. 39:27 39 minutes, 27 seconds Well, thanks for taking my question. You mentioned there are certain uh AI initiatives that are beginning to show results. If you could provide some color 39:36 39 minutes, 36 seconds on that, that's question one. Second is in terms of uh market share in your covered markets. uh how did that pan out 39:45 39 minutes, 45 seconds in Q4 and in the full year and the third is uh in uh in the uh semiglutoide part 39:55 39 minutes, 55 seconds that you're talking about um how are you seeing uh catch up post 40:02 40 minutes, 2 seconds the uh post you taking down the pricing in uh in the month of April 40:10 40 minutes, 10 seconds given the launch of genics are you seeing to your market at glowback that those are the three questions. What do you do? 40:19 40 minutes, 19 seconds Okay. Yeah. So, let me start on the AI front and I can have my colleagues join in. I think the AI initiative it's very 40:26 40 minutes, 26 seconds early days and obviously AI landscape keeps changing by the day. But what we are trying to do is really uh champion 40:34 40 minutes, 34 seconds it across the company. So in places like R&D and manufacturing we are seeing uh definite benefits in terms of some of 40:43 40 minutes, 43 seconds the speed of research and development of some of the products in the pipeline that we're working on uh as well as in 40:51 40 minutes, 51 seconds manufacturing uh looking at how to uh obviously get better efficiencies or throughputs using uh AI to study our own 41:01 41 minutes, 1 second u you know u batches uh being produced etc. Then across the organization I think whether you talk of support 41:09 41 minutes, 9 seconds functions like legal, HR, finance, I think uh we are starting to adopt AI in different ways and means to be able to 41:16 41 minutes, 16 seconds make our workforce a lot more productive. Um even on the marketing side whether it's you know analysis of salesforce effectiveness um and um 41:26 41 minutes, 26 seconds related uh you know sales and marketing initiatives like you know graphics design or mark brand plans etc. These are all areas where you know we're 41:35 41 minutes, 35 seconds seeing some adoption of AI bearing some fruit. Uh but we're very excited because I think the real benefits of that will 41:43 41 minutes, 43 seconds acrue over the next two or three years as we become more and more wellversed in using it uh more holistically across the 41:50 41 minutes, 50 seconds organization. Um I think to your second question uh around some of I'll let my 41:56 41 minutes, 56 seconds colleagues also answer but certainly uh you know we wanted to be aggressive in terms of the post generic entry in terms 42:05 42 minutes, 5 seconds of offering a very robust price point while still offering the innovator brand 42:12 42 minutes, 12 seconds and so we are starting to see uh some green shoots of that as well. I will pause and let you satish comment on Sam 42:20 42 minutes, 20 seconds Gut and uh as well as the last question that you had. Thank you. 42:23 42 minutes, 23 seconds Would you like to talk about some other go? 42:26 42 minutes, 26 seconds So that's something you know that is very close to your heart. Sure. 42:30 42 minutes, 30 seconds No, I mean uh there's obviously a lot going for that brand. A it's an innovative brand. B it's an RDNA 42:38 42 minutes, 38 seconds biologic versus the synthetic generics that have entered the market. Now with this price reduction I think we have a real sweet spot in terms of the pricing 42:47 42 minutes, 47 seconds visav the generics and of course across specialties there's you know uh close to thousand sales reps that are actively 42:55 42 minutes, 55 seconds promoting this product. So we believe that you know all this should get us very good traction over uh the short to 43:02 43 minutes, 2 seconds medium term as well. The other thing I would like to add you know only some time back uh we got also permission for mash that's one thing that is happening 43:10 43 minutes, 10 seconds more indications uh then we in addition to that you know FCC has cleared so I mean so it should be coming any time in addition to that 43:18 43 minutes, 18 seconds you know what happens uh that uh in the price war that is going on with so many generators in the market with absolutely 43:26 43 minutes, 26 seconds correct pricing strategy thanks to noises and reach and penetration and having got some head start you know because started promoting the product 43:35 43 minutes, 35 seconds from December onwards. So I I think you know going forward I'm quite optimistic about you know podistra we should do 43:44 43 minutes, 44 seconds well on the back of you know the clinical data that we have as no said we have access to 40 clinical trials would 43:51 43 minutes, 51 seconds have done all over the world at some rightly alluded to you know ours is our DNA rest of the products are synthetic 43:58 43 minutes, 58 seconds so I think you know on the back of say science and technology that we'll be talking we'll distinguish ourselves you 44:06 44 minutes, 6 seconds know from the competition and let's see how it plays out but at the same time you know as I'm talking to you I'm quite 44:12 44 minutes, 12 seconds optimistic and third one which is a push that covered market share 44:20 44 minutes, 20 seconds so that's you yeah I think overall given the ventage impact that we had in Q4 market share 44:27 44 minutes, 27 seconds would have probably been flatish for the year thank you thanks for the uh detailed 44:35 44 minutes, 35 seconds responses thanks Thank you. We will take the next question from the line of Ankush Mahajan from Phantom World. Please go ahead. 44:48 44 minutes, 48 seconds Sir, thanks for opportunity. My question is related to the India business. 44:54 44 minutes, 54 seconds So if you see there are different parts of the India like basic business than 45:02 45 minutes, 2 seconds Samide and Snow. So despite all these uh uh parts uh our growth is just a 5%. So I 45:10 45 minutes, 10 seconds just try to understand the what kind of a growth we have seen in this business than other business also and uh what we 45:19 45 minutes, 19 seconds are uh as as compared to the previous questions we are uh realizing that the peers uh they have a acute portfolio 45:27 45 minutes, 27 seconds facing such problems uh like the resting of the team and all. 45:32 45 minutes, 32 seconds So uh the growth is uh almost delayed for a few quarters. So would you throw some more light on that part? 45:44 45 minutes, 44 seconds So I think as you mentioned right so yes so the restructuring had impact on Q4 what we are seeing at least in the last 45:51 45 minutes, 51 seconds 45 days 40 or 35 days or of the year the revival and the business performing as per plan. So I think for us we do we 46:00 46 minutes don't expect the impact to last a very long time for us. No but as I explained you know some time back I'm sure you 46:07 46 minutes, 7 seconds know you must have listen that we have problem only Juventus as far as other business are concerned like IB where we are strong in ty and meta metabolic flu 46:17 46 minutes, 17 seconds that continues to perform as per our expectations and our encoy also is performing as per our expectations and 46:24 46 minutes, 24 seconds because of change in management and restructuring that it's so eloquently uh explained we had a bit of a setback you 46:32 46 minutes, 32 seconds know as far as zent concerned but as I told you know in my opening remarks right from April onwards ago we are on track so nothing to worry really 46:41 46 minutes, 41 seconds I would like to just clarify one point um you know the um acquisition of the minority stake and the departure of Mr. 46:49 46 minutes, 49 seconds Gua happened in the month of October. So this is not a recent departure and therefore we're concerned about the 46:58 46 minutes, 58 seconds lagging effect of that over the next two three quarters. Uh what we're trying to highlight is some of this started 47:04 47 minutes, 4 seconds already in let's say end of our Q3 carried into predominantly Q4 where we took the uh efforts over the prior 3 47:13 47 minutes, 13 seconds months uh in Q4 uh to have a lot of that restructuring uh take place and now we're seeing the green shoots of that. 47:21 47 minutes, 21 seconds So in our from our perspective we think that Zventus is more or less tracking on 47:27 47 minutes, 27 seconds back on track uh starting in Q1 itself as opposed to being concerned that this is going to be a let's say two three 47:35 47 minutes, 35 seconds additional quarters lag we're already about four five months into that entire process. 47:43 47 minutes, 43 seconds uh my assessment is that we are almost lost uh 80 to 90 cr of the business in 47:51 47 minutes, 51 seconds the first quarter sorry in the last quarter two four quarter from Juventus side so but behalf of that uh uh we have 47:59 47 minutes, 59 seconds grown in the sotide side and uh others also so 48:05 48 minutes, 5 seconds this uh growth should be on the higher Please did you pause the question? 48:17 48 minutes, 17 seconds So I think which is the semablutite side is still ramping up right. So it's not a big driver for or a big contributor to growth at this point as you know I think 48:27 48 minutes, 27 seconds as what we talked about even last time the initial few months it was more about market shaping and building the business 48:34 48 minutes, 34 seconds and all and then March onwards there was anticipation of generics coming in so there was a price cut so Q4 we didn't 48:41 48 minutes, 41 seconds have that much of a pro semig of delta in there in the business out there I think what is highlighting is x 48:48 48 minutes, 48 seconds of zventus if you look at it are domestic business is growing at that high single digit low double digit rate on an organic basis itself. 48:58 48 minutes, 58 seconds Thank you sir. 49:05 49 minutes, 5 seconds Thank you. We will take the next question from the line of P forum Parik from B Capital. Please go ahead. 49:12 49 minutes, 12 seconds Thank you for the opportunity. Uh my first question is on the domestic side. 49:19 49 minutes, 19 seconds um if you can quantify the contribution of these in licensing products uh to the domestic uh business. 49:28 49 minutes, 28 seconds So the in licensing make up for the domestic about 15% of our fees. 49:34 49 minutes, 34 seconds Okay. And are we still uh scouting or are we still interested in doing more such in licensing these uh in the near term? 49:45 49 minutes, 45 seconds Uh let me uh I'll take that question. 49:47 49 minutes, 47 seconds Yeah. So sir ma'am we are concerned though the entire focus will be on organic growth build you know our own brands and take them to the next level 49:56 49 minutes, 56 seconds also launch the products you know from our R&D at the same time you know suppose if something comes in in licensing we are obviously pretty open 50:04 50 minutes, 4 seconds because let me tell you getting the portfolio cario portfolio from Sami has obviously you know given a fill to our products elsewhere that has worked out 50:13 50 minutes, 13 seconds well and as far as metabolics are concerned you know we hardly had any presence before we got you know metabworks portfolio as in emeril and 50:21 50 minutes, 21 seconds set you know from senophi and what really happened on the back of this portfolio my own products you know with 50:28 50 minutes, 28 seconds uh good GC have also started doing well so I I think you know while the emphasis will be obviously on organic growth I'm 50:36 50 minutes, 36 seconds focusing on our big brands becoming bigger but at the same time as I mentioned you know in the early part of my my my d this you know address e- 50:45 50 minutes, 45 seconds licensing will continue to be part of our strategy going forward wherever it is going to be equity and going to add value you know to our current portfolio. 50:55 50 minutes, 55 seconds Sure. And um uh on this uh prostra brand how should we look at it? I mean despite 51:02 51 minutes, 2 seconds the competition but then we had a price cut and we had some encouraging results out of it. So do we see it becoming a 51:10 51 minutes, 10 seconds meaningful uh contributor uh in the next couple of years to the domestic sales? 51:17 51 minutes, 17 seconds I I think so you know because what really happens you know so thanks to no doubt this [clears throat] the pricing you know is very competitive and as the 51:27 51 minutes, 27 seconds market you know crowds and most of the people will be talking about say price war is going to happen in times to come but as far as we are concerned we'll 51:35 51 minutes, 35 seconds talk about the uh the merit of the product you know which is our DNA product not synthetic backed up by a lot 51:42 51 minutes, 42 seconds of clinical data so we'll be differentiating ourselves on the back of science you going to be talking to the doctor to that extent as I'm talking to 51:51 51 minutes, 51 seconds every reason to believe you know that this product should do well going forward for us and uh yeah go ahead I was just going to add 51:59 51 minutes, 59 seconds that I was just going to add that as you already mentioned as the indications of use continue to widen and more and more 52:08 52 minutes, 8 seconds specialists become comfortable writing the brand uh that's where we think we will continue to gain momentum with this brand as Sure. 52:18 52 minutes, 18 seconds Um my second question is on the R&D pipeline towards ADC. So if you can just explain what part of the ADC are we uh 52:28 52 minutes, 28 seconds are we doing and when do we see this um getting commercialized? How long is it you know for the commercialization to take place? 52:38 52 minutes, 38 seconds Sure. So there are two parts to the ADC program. One will be a biosimilar ADC and the other will uh you know have some 52:47 52 minutes, 47 seconds element of innovation in it especially the linker around which we have our own IP. So the linker and payloads will be 52:55 52 minutes, 55 seconds in-house the conservation will be done in-house for uh the map since you know it's a crowded market with available 53:05 53 minutes, 5 seconds drug substance we are partnering with you know a company to um work on the map so in that context the bioilar should 53:14 53 minutes, 14 seconds have a shorter approval pathway and u you know the innovative ADC of course 53:21 53 minutes, 21 seconds will be slightly longer But you know we've seen some encouraging results in terms of identifying some potential lead candidates. 53:32 53 minutes, 32 seconds Okay. So by when do we expect uh commercializing uh these products? Is it in the near couple of years time? 53:41 53 minutes, 41 seconds So, so the bio or ABC the only reason you know I'm not giving out a very specific timeline is because the 53:48 53 minutes, 48 seconds regulatory landscape in India itself is evolving um you know many countries globally have done away with phase three 53:56 53 minutes, 56 seconds trials which are typically the most expensive uh you know studies which have the longest timeline as well. So if you 54:05 54 minutes, 5 seconds know there is some um regulatory pathway that is similar to these countries then 54:13 54 minutes, 13 seconds it could you know take away a significant portion of the development timeline. So you know it's there's no point in trying to guess where and at 54:22 54 minutes, 22 seconds what time these paths will coincide but uh it could make a significant difference in the approved timelines 54:29 54 minutes, 29 seconds with and without a phase three. So it may not be accurate to give out a timeline but obviously the biosimilar will be earlier than the novel one. 54:38 54 minutes, 38 seconds Okay. And lastly on the capeex front if you can just give us the capeex expected for FY27. 54:48 54 minutes, 48 seconds Yeah. So I think there we rough number. Uh I think we'll broadly be in that range of 400 425ish crores. 54:59 54 minutes, 59 seconds Sure. Okay. And thank you that uh thanks a lot. Yeah. 55:06 55 minutes, 6 seconds Thank you. We will take the next question from the line of Kunal Gaderia from Axis Capital. Please go ahead. 55:14 55 minutes, 14 seconds Yeah. Hi, good afternoon. Uh so my first question is around the assumptions uh on the guidance. So you said barring any 55:21 55 minutes, 21 seconds geopolitical events but as we speak you know there are geopolitical events up uh that might just push up the prices or would have already pushed up the price 55:29 55 minutes, 29 seconds of some raw materials. So how much of it uh you know some of the price a cost increase would be already baked in your 55:37 55 minutes, 37 seconds garden in your garden. 55:39 55 minutes, 39 seconds So kunal I think a couple of factors right one is I think given the nature of the business and especially some of the markets we are in for most of the 55:47 55 minutes, 47 seconds markets we do have between one to two quarter of inventory so at least for the next I think for next one or two quarters we are we don't see much of a 55:56 55 minutes, 56 seconds impact coming through uh I think post that there are we'll have to see if this price elevation last across raw material 56:04 56 minutes, 4 seconds and how much we can pass it on to the customer side so you would have seen even in the domestic market the IPA has reached out to a price hike. I think we 56:13 56 minutes, 13 seconds are also looking at what we can do in the within the international markets. So it's still a evolving phase uh at this point we don't think if uh unless it 56:22 56 minutes, 22 seconds deteriorates further it should not be a major impact but we'll have to see as it evolves. Uh one more point you know that I would like to add this industrywide 56:30 56 minutes, 30 seconds problem not necessarily restricted to one company and uh the advantage you know that we will have that we are not in a purely generic generic market you 56:39 56 minutes, 39 seconds know because we are having differentiated products so to that extent our ability that's what I don't know how it plays out will be better in 56:48 56 minutes, 48 seconds terms of you know asking for higher price you know going forward and as far as India is concerned this industrywide problem IP is very proactively be taken 56:57 56 minutes, 57 seconds up you know with the government and we are also involved you know in the negotiations so let's see how it plays out you know going forward it's a 57:04 57 minutes, 4 seconds industrywide problem understood sir understood so second question is uh you are looking to file 57:12 57 minutes, 12 seconds for 7 in Canada uh now with a couple of approvals uh it might be a bit late I guess so what is the path would you be 57:21 57 minutes, 21 seconds kind of now partnering with someone you know maybe as a marketing partner What's so far ahead? 57:29 57 minutes, 29 seconds Would you like to take that? 57:32 57 minutes, 32 seconds Yeah, I can take that. So, in fact, in Canada, as you know, both Appletex and Ready's did get the approval very 57:39 57 minutes, 39 seconds recently. Uh, you'll be happy to know that our Mantra subsidiary in Quebec uh has partnered with Dr. Ready's and we'll 57:48 57 minutes, 48 seconds be launching the product hopefully sometime in Q2 and then ramp up from there. uh we are obviously filing our 57:56 57 minutes, 56 seconds own product in Canada as well for uh addressing I think the more you know midterm opportunity uh for throughout 58:04 58 minutes, 4 seconds Canada but we're very very excited about uh you know our partnership with Dr. 58:09 58 minutes, 9 seconds readies um to be able to capture, you know, a decent market share in the Quebec market where we anticipate that 58:17 58 minutes, 17 seconds the pricing dynamics will be more favorable there relative to even the rest of Canada. And it just shows you 58:24 58 minutes, 24 seconds the strength of our team that DRL has uh you know chosen uh to partner with us for trying to capture you know that 58:32 58 minutes, 32 seconds early mover advantage in the Canadian market. 58:36 58 minutes, 36 seconds Okay, that's that's good to know. So would it be uh like a profit share kind of an agreement or more of a marketing 58:44 58 minutes, 44 seconds margin kind of a you know fixed marketing margin kind of a agreement? 58:49 58 minutes, 49 seconds Yeah. So I don't want to specifically comment on the deal dynamics. I think it's early days but you know I think it 58:56 58 minutes, 56 seconds it's a decent opportunity for us uh for specifically the Quebec region and I think only time will tell how lucrative 59:04 59 minutes, 4 seconds that can become. Obviously uh you know at the same time uh I must say that early days there was a lot of numbers being thrown around for the 59:12 59 minutes, 12 seconds Canadian market. Obviously some of the pricing um uh has corrected a bit. So we think it's still a decent opportunity uh 59:20 59 minutes, 20 seconds for us looking at the dynamics of the deal as well as longer term uh when we anticipate entering at some point in the 59:28 59 minutes, 28 seconds future with our own product to address the remainder of the market. 59:33 59 minutes, 33 seconds Got it. Got it. So thank you all the best. 59:38 59 minutes, 38 seconds Thank you. We will take the next question from the line of Abnish Burmal from Vicaria. Please go ahead. 59:46 59 minutes, 46 seconds Yeah. Hi, good evening. Thanks for taking my question. Uh my first question is uh in continuation with the previous participant session um on the impact of 59:55 59 minutes, 55 seconds business um because of the Middle East conflict. Uh I just wanted to know whether uh uh are you facing any 1:00:03 1 hour, 3 seconds constraints in terms of you know container availability or raw material or even people in your factories. Is there any impact on the business because of that? 1:00:13 1 hour, 13 seconds No. So I don't think they're saying any supply issues right now. I think the impact that we have is largely more on the pricing front. Supplies have not we have not seen anything. 1:00:22 1 hour, 22 seconds No. Again the supplies in the sense limited sense what is really happening the solvents you know are the prices are shot up the solvents are not available 1:00:30 1 hour, 30 seconds that we require you know for active pharmaceutical ingredients and that is industrywide problem you know that we are facing and uh even for that matter 1:00:40 1 hour, 40 seconds you know it's it will be one must admit you know the insurance cost and the trade cost has also gone up because of a long a longer route you know which is 1:00:48 1 hour, 48 seconds required to be taken uh but at the same time It's difficult to find you know what is the impact as of now as you rightly mentioned you know some time 1:00:56 1 hour, 56 seconds back we are carrying inventory everywhere and if the war continues you know for a few months I think the entire industry or entire industry not 1:01:05 1 hour, 1 minute, 5 seconds necessarily pharma all of those are going to be impacted right no so for example cost like you mentioned freight and insurance costs 1:01:14 1 hour, 1 minute, 14 seconds and all I mean these are inventory independent so in these kind of cost increases are you able to pass it on or are you taking it right now in or PNL. 1:01:24 1 hour, 1 minute, 24 seconds So I think it's a mix. I don't think I think the guidance what we are guiding out includes the current what we are seeing in terms of the pricing. 1:01:33 1 hour, 1 minute, 33 seconds Okay. And as far as your uh for your domestic business if you have any CMO partners in India are you facing any bottlenecks from those partners? 1:01:44 1 hour, 1 minute, 44 seconds No. No. 1:01:46 1 hour, 1 minute, 46 seconds Okay. Okay. Uh my second question is on this uh the FDA u announced some u 1:01:54 1 hour, 1 minute, 54 seconds development on the biosimler front where they reduce the R&D of bioinder just your opinion on uh you 1:02:02 1 hour, 2 minutes, 2 seconds know how does it impact the new entrance or the incumbents differently if you can just talk about that a little bit. Yeah, 1:02:09 1 hour, 2 minutes, 9 seconds I think um you know many companies will now find it a little more lucrative to enter the biosimilar space because like 1:02:18 1 hour, 2 minutes, 18 seconds I was previously mentioning uh phase three which is essentially an efficacy study uh you know for a lot of 1:02:26 1 hour, 2 minutes, 26 seconds bioimilars could possibly be waved off and that was the largest component in terms of both cost as well as elongating 1:02:33 1 hour, 2 minutes, 33 seconds the timelines. So you know once that goes away and we see more approvals coming through that have been filed 1:02:41 1 hour, 2 minutes, 41 seconds without the phase three or with the waiver then you know definitely the biosimilar space will heat up a little more and that's said that's where 1:02:50 1 hour, 2 minutes, 50 seconds company like MQ Genova will have the advantage given that we have been in this business for quite a long time and have developed strong expertise on both 1:02:59 1 hour, 2 minutes, 59 seconds the mamalian as well as the bacteria platforms of which most of the biosimilars are anyway produce. So in terms of maximizing or optimizing the 1:03:08 1 hour, 3 minutes, 8 seconds titers, the yields, the cogs, we are there. So you know even with competition being very intense and cogs playing a 1:03:15 1 hour, 3 minutes, 15 seconds major role, uh we should be able to thrive in uh the market going forward. 1:03:22 1 hour, 3 minutes, 22 seconds Understood. Thanks. I'll get back in with you. 1:03:27 1 hour, 3 minutes, 27 seconds Thank you very much ladies and gentlemen. We will take that as the last question for today. And with that concludes the question and answer 1:03:35 1 hour, 3 minutes, 35 seconds session. I now hand the conference back to the management for closing comments. 1:03:40 1 hour, 3 minutes, 40 seconds Okay. I mean this is Satish Ma. Uh thanks son know for very active participation. Uh I would like to reiterate you know that we have 1:03:48 1 hour, 3 minutes, 48 seconds delivered strong root in FY26 I which has exceeded our initial guidance. I understand your concern 1:03:56 1 hour, 3 minutes, 56 seconds about zooters but I would like to again reiterate we are in shape good shape. 1:04:00 1 hour, 4 minutes April has been as per our expectations and I believe you know uh we will deliver you know the growth as per what 1:04:08 1 hour, 4 minutes, 8 seconds the guidance rule which has been given by the company nothing to worry as far as the domestic business is concerned uh with our diversified business model as 1:04:17 1 hour, 4 minutes, 17 seconds we kept on talking about the poor position that we have in Canada Europe and uh uh emerging market I believe we 1:04:24 1 hour, 4 minutes, 24 seconds are very well positioned to continue our growth trajectory and uh as you know P mentioned As also mentioned you know in 1:04:31 1 hour, 4 minutes, 31 seconds my initial remarks uh low to mid-tame growth with continued AITA margin expansion in FI27 will keep on working 1:04:40 1 hour, 4 minutes, 40 seconds that is something you know which will happen and as we mentioned you know the entire focus will be on execution 1:04:47 1 hour, 4 minutes, 47 seconds processes and people and uh and growth you know will be fairly well diversified 1:04:54 1 hour, 4 minutes, 54 seconds uh because the company and the business that we have built we are very strong four verticals as a domestic market you know which I love we should keep on 1:05:02 1 hour, 5 minutes, 2 seconds doing better and better as we go along but at the same time excellent position in Canada Europe and uh uh emerging 1:05:10 1 hour, 5 minutes, 10 seconds market that we have so to that extent business is in good shape and uh we should deliver results you know as per the expectations of the market you know 1:05:18 1 hour, 5 minutes, 18 seconds going forward so thank you very much for giving patient hearing and looking forward to interacting with you from time to time and if you have any 1:05:27 1 hour, 5 minutes, 27 seconds follow-up questions you know kindly feel free to reach out to us and we'll be more than happy to answer. Thank you very much. 1:05:35 1 hour, 5 minutes, 35 seconds Thank you members of the management. On behalf of Nure Pharmaceuticals Limited, that concludes this conference. Thank 1:05:42 1 hour, 5 minutes, 42 seconds you all for joining with us today and you disconnected. Thank you.