Ladies and gentlemen, good day and welcome to the JB Pharma's Q2 FY25 earnings conference call as of the 7th of November, 2024. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing star and then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Jason D'Souza, Executive Vice President at JB Pharma. Over to you, sir. Thank you, Audreya. Welcome to the earnings call of JB Pharma. We have with us today Nikhil Chopra, CEO and Whole-time Director, Kunal Khanna, President Operations, and Narayan Saraf, the CFO at JB Pharma. Before we begin, I would like to state that some of the statements in today's discussions may be forward-looking in nature and may involve certain risks and uncertainties. A detailed statement in this regard is available in the Q2 FY25 results presentation that has been sent to you earlier. I would like to hand over the floor to Mr. Nikhil Chopra to begin the proceedings of the call and for his opening remarks. Over to you, sir. Thank you, Jason, and a warm welcome to all of you. Thank you for being with us today. I will commence with my thoughts on our Q2 performance. JB Pharma has maintained its pace of performance with INR 1000 crore revenues being delivered yet again in Q2 FY25. Our gross margins have held steady at 66.2%, whereas our operating EBITDA margins came in at 28.4%. The operating EBITDA stood at 13% higher than the INR at INR 285 crores, while net profit increased by 16% to INR 175 crores. I am pleased to share that our domestic business has continued to around 59% of the overall turnover during H1, relative to 55% during H1 FY24. This is representative of the consistent momentum in our brand portfolios. We have created leadership positions in the select categories where we operate and continue in turn to expand those categories. Let me cover this in some details for all of you. The domestic business delivered 22% growth year-on-year to INR 588 crores for Q2 FY25. Excluding ophthalmology, we have increased the business by 12% growth year-on-year from here. We have continued the trend of delivering ahead of market as per IQVIA MAT September 2024. JB Pharma has shown 11% growth versus IPM growth of 7.6%. Each of our big brands has witnessed healthy gains. Presently, all our top five brands are among the top 150 in the country. We are within the top 10 players in the cardiology market, whereas we have jumped ranks from 15 as per MAT September 2021 to now 8 in MAT September 2024 in the cardiology market. Azmarda and Razel have contributed here along with the Cilacar and Nicardia franchises. Let me expand on our acquired portfolio performance. Azmarda has delivered sales of INR 67 crores as per IQVIA MAT September 2024 post-LOE, and this trend is only likely to improve with sacubitril-valsartan market growing at a 15%-20% CAGR for the foreseeable next five years. Razel franchise has given a strong 28% year-on-year growth as per IQVIA MAT September 2024. Sporlac franchise reported a revenue of INR 137 crores as per IQVIA MAT September 2024, growing at a 29% CAGR since INR 83 crores as per IQVIA MAT September 2022. So from INR 83 crores in September 2022 MAT, today we are INR 137 crores September 2024 MAT for Sporlac franchise. Our pediatric portfolio has achieved some notable trends with Z&D Pediatric Syrup formulation becoming a INR 24-crore brand. Ophthalmology has been well integrated in January 2024 and has grown 19% in Q2 FY25 related to Q1 FY25 as per IQVIA MAT data. Coming to our international operations, our international business revenue has grown at 3% to INR 413 crores. Both South Africa and the U.S. business have recorded double-digit growth. Even our Russia and Branded Generics export business in rural markets had a high single-digit performance. Our CDMO business remained muted for H1 FY25 and is expected to recover in H2 FY25. CDMO says there is $2 million got deferred to Q3 FY25 due to material availability challenges, which further impacted our Q2 FY25 performance. As a result, CDMO is expected to report a strong number for Q3 FY25. We have a robust order book for Q3 and Q4 FY25. We are maintaining our margins out to 26%-28% despite the uncertainties in the market where we operate. Cost optimization is a key focus area for us. Looking ahead, we anticipate our domestic business to continue to outgrow the market on the back of our brand focus and market share gains. The thrust on chronic and high-growth portfolios will also contribute strongly to this performance for the coming time. We expect our CDMO business to show a strong trend in H2, as mentioned earlier, and thereafter on the back of new launches, new partners, and expansion into new geographies across the globe. We are building a strong business that continues to deliver backed up by efficient operating processes and strong brands. With that, I wish to conclude my opening comments and request our CFO, Mr. Narayan, to continue with his comments. Over to you, Narayan. Thank you, Nikhil. Good afternoon, everyone, and welcome to our Q2 earnings call. I will now take you through the financial highlights for Q2 FY25. Revenues for the quarter were at INR 1,001 crore, representing an increase of 13% year-on-year. The domestic international business was 59% to 41%, respectively. The domestic business reported revenues of INR 588 crore, with growth of 22% year-on-year. Not including the ophthalmology portfolio, the domestic business reported a 12.6% year-on-year growth. As per IQVIA MAT September 24 data, within the IPM, the company outperformed with a growth of 11% versus the IPM growth of 7.6%. The international business saw moderate growth of 3% year-on-year at INR 413 crore. Gross profit margin for the quarter stood at 66.2%, grew by 13%. Excluding ophthalmology portfolio, which currently has limited margin, gross margin improved by more than 150 basis points year-on-year. However, cost optimization efforts, favorable product mix, and price growth aided margin. Operating EBITDA, excluding ESOP cost, stood at INR 285 crore, with growth of 13% year-on-year. The margins were at 28.4% in Q2 FY25. On the expenses, overheads, including employee costs, were contained, which also aided operating margin. Finance costs reduced from INR 10 crore in Q2 FY24 to INR 2 crore due to decrease in gross debt. MTM forex impact of INR 4 crore was recorded in Q2, primarily due to depreciation in ruble currency. The company's operating cash flow in H1 was at INR 380 crore, as against INR 421 crore in H1 FY24. Cash tax has increased by INR 34 crore due to increased taxable profit and lower accumulation of deferred tax liabilities. The company held inventory because of anticipated EPR cost and ophthalmology inventory. The company's gross debt as of 30th September 2024 was at INR 82 crore versus INR 358 crore as on 31st March 2024. Net CapEx expectation for H1 FY25 was INR 53 crore versus INR 93 crore in H1 FY24. We reiterate our guidance for operating margins between 26% to 28%. We remain confident on positive outlook through opportunities for the company and providing value to our stakeholders. That brings me to the end of my opening remarks. I now request the moderator to open the forum for the question-and-answer session. Thank you. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Amey from JM Financial. Please go ahead. Hi. Thank you for the opportunity. Am I audible? Yes, yes, yes, Amey. Hi. So a few questions from my side. First, given our capacity expansion in our CDMO business, how do we see this business growing in the future, and what would be the peak potential for this? Amey, earlier also in my earlier commentary, also what we have projected, if you look at medium to long term, this business, which is now close to $50 million, we want to make it to $100 million in three to five years. But in short to medium term, probably what our commentary has shared in H2, you should see business ramping up because $2 million got deferred in Q3 because of the material availability. There are a lot many of new projects that we have put in place: new drug delivery, newer geographies, newer partners, newer category of lozenges. All these are in place. We'll be more than happy to share the details as and when we are ready to share that. But overall, the momentum that we see in this business is up north, and our guidance in terms of the business that we want to take it to $100 million still stands as is. Okay. Understood. Thank you, sir. And second question, is it possible to provide the constant currency growth for the international business segments? We'll get back to you. We have not seen the constant currency growth. We don't have the numbers handy right now. No, sure. Thank you. Thank you. The next question comes from the line of Sumit Gupta from Centrum. Please go ahead. Thank you for the opportunity. Am I audible? You're audible, but you can be a little bit because the voice is too loud. Yeah. Go ahead and ask the question, Sumit. Yeah, yeah. Okay. So first, I have two questions. So first is on the Azmarda. So what kind of potential do we see in Azmarda and what kind of growth rate? Can you react to that? The Azmarda growth rate, in the future, we project a growth at 15%-20%. There is huge potential in the heart failure market, as we maintained earlier, also close to more than 10 million patients, less than 20% diagnosis. The adoption continues to be extremely high for this product. In the last call, also, we mentioned that our first goal was that consolidation happens, and we maintain a run rate of 125,000 units, which is close to INR 6 crores monthly value. We are there. We are consistently tracking at that mark, and we continue to maintain a very positive momentum for this particular molecule. It will grow at 15%-20% from here on. Okay. So the demand is like how much? So last quarter, you mentioned it around 125,000 units. So is it steady, or how is it? So from here on, so quarter- on- quarter, we expect close to 5,000-7,000 units gain. So what we are expecting is by the end of this financial year, we'll be close to 140,000-145,000 units. And from there on, we should expect close to mid-teens growth for this particular molecule. Understood. And the last thing on the operating EBITDA sheet also, for H1, you delivered around 29% yearly, and the guidance is still maintained at 26%-28%. So what will likely lead to a moderation in the margin taken up? See, we maintain our guidance. Our endeavor is to be on the higher range of the guidance given. While we have delivered that, we are also mindful that Q4, India business in March, because of inventory normalization, there is a marginal impact. But having said that, we are fairly confident that we should be at the high range of the guidance given. Understood. Thank you. All the best. Thank you. The next question is from the line of Tausif from BNP Paribas Exane Research. Please go ahead. Good afternoon. Am I audible? Yes. Yes. So thanks for the opportunity and congrats on the good set of numbers. My first question was on India business. Can you provide the price and volume breakup for this quarter? Yeah. So the volume growth was in the range of around 5%, and the price growth was also in the range of around 6% for the quarter. Second question on the CDMO part is, do you expect this raw material issue to get resolved in coming quarters? Yeah, yeah. That is what I shared in my commentary, that already this material availability issue has been resolved, and a $2 million order, which has been deferred in Q3, will be delivered. That will be very stable. Okay. So last question in last four to five years on our top brands. What kind of volume growth we have witnessed? Volume growth has been consistently at close to 6%+. Even if we compare our volume growth of late in Q2, we have registered 5% versus IPM of less than 1.5%. And that's what we have always maintained, that we'll try to maintain an incremental 3% to 4% delta as far as volume growth in the IPM is concerned, and we continue to trend along. Also, just to clarify, the volume and price growth which was given was excluding ophthalmology portfolio. So we clocked organically 13%, and that was the breakup of volume and pricing. If I'm right, we have launched a several-line extension, right, for the existing products in the last four-to-five years? Yeah. Life cycle management has been very critical to our overall growth strategy for the large brands. So big brands like Metrogyl have now extensions like Metrogyl ER. Rantac has Rantac OD, Sporlac, which we acquired. We did significant incremental innovations. So now we have other variants in the form of GG, Sporlac- GG, and there are other various forms of probiotic which we are looking at. So LCM has been very core and critical to our overall strategy of organic and acquired portfolio. Thanks. I'll get back into queue. Thank you. Ladies and gentlemen, if you wish to ask questions, you may please press star and one. The next question is from the line of Rashmi Sancheti from Dolat Capital. Please go ahead. Yeah. Thanks for the opportunity. My call was dropped, so I think I have missed that comment. Did you mention the reason for the non-availability of the raw materials in the CDMO segment? Was it related to change in any particular vendor because of which it got delayed, or any specific reason for it? No, no. This is not related to any change in vendor. Nothing of concern. Just specific excipients got delayed. Some of these excipients, because it's a very unique and differentiated product, come from regulated markets, and there was just a slight delay. So nothing of concern. Overall, we see very strong traction for our CDMO business in H2, and some of these supply challenges will also get resolved. Okay. So if we expect that growth would come back in H2, and H1, we have seen a decline, so can we expect that for this entire year, at least we would close flattish over FY24? Yes. That's a fair assumption. In fact, CDMO business for H2 will be in very high double-digit growth rate, 20%+. So we don't expect any further impact on this business. We are seeing a healthy traction, and it should be as suggested. Okay. And can you quantify how much sales in this quarter was deferred to Q3 in this CDMO part only? You missed what I gave the comment. It was $2 million. $2 million. Yeah. Okay, okay. And in the domestic business, we are seeing Razel franchise showing a very strong growth. Earlier, we were anticipating that this franchise will more or less be in line with the market, and it is outperforming both statin market and the rosuvastatin market. So what are the initiatives which you have taken which is leading to this kind of growth? And what do you expect that whether the growth will get normalized or it will continue in this way? See, the good thing is we are in a progressive market. If you just look at the numbers of plain and combination as reflected in IQVIA, our plain has grown at 30%+ for Q2. The market is closer to 20, and our combinations are also growing at 20%+, which is higher than market. It's a very focused strategy which we have. This brand was part of our other second main chronic theme where Nicardia was being promoted. We have good space in kind of ensuring that this brand gets P1 priority, and given the expansion of cardiologist and consulting physician in the prescriber base, we have been able to get strong results for this. Okay. But any field force, any dedicated field force for this particular franchise you have added, or it is the same? It was part of our main second flagship chronic theme which was promoting Nicardia. In that particular theme, this gets priority one positioning. Okay. Got it, got it. And one question on CapEx. What is the guidance for this year and the allocation for it? If there is any growth CapEx planned because your ophthalmology product would finally come in with the company from FY27, FY28. So any plans for that? So if you can give guidance on that? Yeah. So in H2, we are planning for another INR 50-55 odd crores of CapEx. So totaling this year, we will be investing INR 100 crores+ of CapEx. And obviously, we will keep on investing behind, besides maintenance, into even growth CapEx and supporting for our growth endeavor of future of the business. So we have plans to invest in machineries which will support our IV portfolio, which will support our business. Yeah. So every year, when we look at CapEx, which is close to INR 100 to 120 crores, we should assume 15%-20% is the growth CapEx. 15%-20%. Okay, okay. And one last question, $116 million which we will be paying before December 26th, that will be entirely paid through the internal accruals, or we are going to because we have already repaid the debt, but are we going to add the debt in FY27, or we will be utilizing it through internal cash only? As of now, the intent is that we want to pay it from the internal accruals also only because we would have enough funds to pay off the loan at that point of time. Okay, okay. Thank you so much. That's it from my side. Thank you. The next question is from the line of Harith Ahamed from Avendus Spark. Please go ahead. Good afternoon. Thanks for the opportunity. For the ophthalmology portfolio, I think we can calculate revenues of around INR 90 crore in H1. So can you share some color on the kind of growth that we've seen in this portfolio, and if you can also talk about some of the changes that we have brought in after licensing these brands, including the addition of MRs? So any color there would be helpful. See, purely from a numbers standpoint, when we acquired this portfolio, the steady-state run rate of the acquired portfolio in the previous organization was close to INR 40 crore. In H1, we had started seeing good growth trends, and we were closer to INR 44 to 45 crore, and now we are closer to INR 48 crore run rate per quarter. So we are well aligned to our overall objective of clocking close to INR 185 to 190 crore for this portfolio. We have seen very strong secondary traction. If you look at the recent numbers for this quarter, even the external market reflection is showing close to 18 to 19% growth. Our objectives of expanding the prescriber base have started yielding us results. So when we took this portfolio under this team, there were close to 7,000 ophthalmologists which were being covered. We have expanded the team. We took it from 65 to closer to 105, and we are right now covering close to 13,500 ophthalmologists, which in the near future, in the next 12 months, that prescriber coverage will also expand to 16 to 17,000. So every quarter, we are seeing good sequential growth and very strong secondary trends. We remain extremely confident and optimistic about this. A couple of points I would like to add. If you see our presence today in the ophthamology business, where we are doing around INR 47-48 crores revenue every quarter, our major presence is in the world of glaucoma, pain, anti-allergic, antibiotic. Last month only, we have launched a new product from JB House, which is sodium hyaluronate. You will continue to see every three months one product that we will be launching in this portfolio. In terms of what are the unmet needs in this market with now the right coverage and 100+ people working in this team, we have enough space in terms of we can target newer categories. Okay. Thanks for that, and second question is on your mature franchises that I'm referring to, Rantac and Metrogyl. Obviously, as we've seen, growth has been slower versus the rest of the portfolio. But going forward, how should we think about these two large franchises because they continue to account for a significant share of our overall sales? Are we expecting these to deliver growth going forward, or should we expect a fairly flat kind of profile? The good news was that in the first six months of the year, let me talk first about Metrogyl. Metrogyl this year has demonstrated high single-digit growth because of the better uptake in terms of prescriptions. Many of the progressive SKUs within Metrogyl franchise had good uptake in the prescriptions. The same holds true for many of the franchises within Rantac, but the mother brand in Rantac is flat in volume, which you should assume it should be flat in volume. There are other SKUs within Rantac franchise which are showing a good double-digit growth. Basically, low single-digit growth is what you should expect for Rantac franchise. Metrogyl probably this year's season has been good. That demonstrated a good high single-digit growth. The focus is more on the progressive prescriptive SKUs within Rantac and Metrogyl franchises. Thank you. I'll get back into queue. Yeah. Thank you. Participants, to ask questions, you may please press star and one. We have the next question from the line of Rahul Jeewani from IIFL Securities Limited. Please go ahead. Yeah. Hi sir. Thanks for taking my question. Sir, on the Cilacar portfolio, obviously, we have seen very good growth over the past few years. But if you look at this franchise now, this franchise is almost a INR 700 crore franchise for us as per IQVIA data. So what kind of a growth do you see in this franchise going forward, and what would be the drivers for the same? So do you see any doctor coverage gaps as far as the cardiologist or the nephrologist channel is concerned for Cilacar? So first of all, there is no doctor coverage gap. Basically, we have bifurcated the entire focus on this franchise. We have the focus continues to be on Cilnidipine, which is a starting prescription for newly diagnosed hypertensive patients with compromised renal function. That is point number one. Point number two is the way we have segmented Cilacar- T as a product for patients who are suffering from comorbid conditions of diabetes with hypertension. That is where the focus continues to be there. And equally, there are other two franchises where we are focusing, which is a combination of Cilnidipine metoprolol and equally Cilnidipine Telmisartan metoprolol and Cilnidipine telmisartan Chlorthalidone. These are five SKUs within Cilacar franchises which will continue to show a good growth. See, the way we see this market is not only in terms of revenue or whatever month, that is what we are generating, but we more look at in terms of the burden of disease. If you look at in a country like India, 100 million+ people suffer from hypertension, and one in four patients is undiagnosed. So we have basically put the entire positioning of segmentation, targeting, and positioning for all our different SKUs to different specialty for different indication. So we seem to be very bullish in terms of what we can do with Cilacar franchise and targeting more from looking at how do you reduce the burden of disease. And equally, JB being a responsible company, we are closely working with all the specialists, be it cardiologists, nephrologists, endocrinologists, MD medicine, not only going and promoting the products in the clinic of doctors, but also helping in dissemination of knowledge where we are also working closely with many of the societies like Cardiology Society of India, also Association of Nephrologists, equally MD medicine in terms of what new guidelines can come in place and help in dissemination of knowledge all across, which will help not only in terms of patients being diagnosed early and being given the right treatment for the right ailment that they are suffering. Sure, sir. Sir, on this growth which we have seen for Cilacar and Cilacar- T, which has been around, let's say, 20%-28% figure for the past three-year period, can you call out the volume growth for both these brands specifically over the past three years? So the volume growth continues to be between 12% to 14% for Cilacar. Okay, so 12%-14% is still being driven by volume growth? Yes. Sure, sir. And sir, the second question which I have is on the export businesses. Now, if we see on the export formulations, this quarter we saw a growth pickup happening because of the fact that the rationalization of the South Africa tender business is now in the base quarter as well. So given that the impact of South Africa tender rationalization in the base, what kind of a growth are you targeting in the export formulation business over the next two to three-year period? So let us talk of current year. Currently, we are looking at this international business to grow a double-digit, and we should be closing the year at single-digit for this business. That is where we stand. And South Africa, as you told, what you were talking about, last five quarters, we have come out with the haircut that we have taken off INR 150 crores this year. This quarter, we showed double-digit growth, and this busin ess now will grow at double-digit, around 10%-12%. FY27, we should see better traction in our RoW Branded Generic business, where we will see some traction coming from new launches which we have been filing last year, this year. Both put together, we should be filing around 20 new products. That should also contribute to the business growth for that business, which is once again approximately INR 100 crores a quarter. So overall, because of this $2 million business of CDMO getting deferred in Q3, that is why overall business you saw muted growth of 3%, but we should close the business with high single-digit growth, with double-digit growth happening in H2, and this business overall should go at around double-digit in the coming time. Sure, sir. And, sir, last question from my end. So when the new management team had come in at JB, we had also expanded our R&D team in terms of a new R&D facility. But if we see the traction on the exports business in terms of new filings or even new NDA filings for the US business has been limited. So when do you see some of those R&D efforts translating into better growth for the international business? See, Rahul, we have always maintained there are two parts of our filing strategy. One is what we will do in our overall international RoW markets and a very selected stage gate approach as far as the US market is concerned, right? So with respect to the international rest of the world markets, as Nikhil was saying, we've already done close to 20 development and filings. The benefits of that, and this being international market, from the time the dossier is prepared, filed, and once you get regulatory approval, it's an 18 to 20-month process. So the first phase of 10 products which we have filed, we should start seeing benefits and regulatory approvals coming for them somewhere in September, October of calendar year 2025, which means basically Q3, Q4, FY 2026. And for the other set of 10 products, you should start seeing incremental gains coming in in FY 2027. So we are fairly confident that the first two phases of international filings of 20 products, we should start seeing incremental gains from late FY26 and full realization in FY27. Coming to U.S., we have always maintained that it's going to be close to three filings a year. We have, over the last two years, maintained that, and you should start seeing approvals also coming through in the next nine to 12 months. Sure, sir. And just one follow-up on that. Can you split out these 20 filings across markets if that is possible? That is, we would not want to kind of give disclosures regarding that. That's a very business-specific strategy which we have for these products. Sure, sir. Thank you. That's it from my side. Thank you. We have the next question from the line of Somia from Desvelado Advisory. Please go ahead. [audio distortion] Somia, your line has been unmuted. You may proceed with your question. Hello. [audio distortion] [audio distortion] [audio distortion] Somia, please try now. Hello, sir. Am I audible? Yes, yes, yes. Please continue. Please. Sir, I wanted to ask the question. In the previous call, you quoted for the new product launches in pediatrics, GI, probiotics, so with an expected pace of one to two launches in every two months. So could you please provide an update on whether this guidance has been followed so far, or if so, could you please share the details of the recent launches? So first product that we had launched was this Ranraft syrup, which is in the GI franchise. Also, which should clock around INR 10 crore revenue for the year. Almost we are six months of the year has happened. That is point number one. Equally, a couple of launches have happened in the world of Sporlac franchise, with what was shared earlier. That is Sporlac-G G. That is a pediatric formulation of Sporlac, and equally, Sporlac Eva, which is here. Equally, in Metrogyl franchise, we have launched Metrogyl DG Gel, which is once again for dental health. You should see a couple of more launches happening. We have also launched one eye drop, that is sodium hyaluronate, which is in the market in the world of ophthalmology. We have a very good iron supplement, that is Bizfer- XT tablet, which is close to around INR 15-20 crore product. We are launching a syrup formulation in that. Equally, you should see probiotic for dental health, which should come in probably in the month of December, and one or two more launches you should see in the world of ophthalmology, so this trend will continue. Sir, what has been the outcome of this on the revenue? Has it impacted or not? Yeah. So what was shared earlier by Narayan, if you look at the volume growth, which was 5%, and price growth was 6%, new product are contributing around 1.5%-2% overall growth. Thank you. Ladies and gentlemen, to ask a question, you may please press star and one. The next question comes from the line of Sumit Gupta from Centrum. Please go ahead. Hi. Thanks for the opportunity. Sir, two questions. First is on the Cilacar productivity. How much is the MR base as of now? Today, we have an MR base of 2,300, including ophthalmology. 2,300. Okay. So going forward, how do you see selling out MR productivity? Or do you plan to add new MRs? No. So right now, we don't have any plans to add more MR. At least in the next 12 to 18 months, there is no plan to add any MR. And today, our productivity stands this year is around INR 7 lakhs. Okay. And, sir, second is on the ESOP charge. So, do you still maintain in FY25 full year you will be doing the ESOP charge of INR 42-45 crores? On ESOP cost? ESOP cost, yeah. So ESOP cost, we have incurred around INR 14 crores this quarter, and yes, we expect it to be another INR 25-30 odd crores in H2. 25 to 30 odd crores. Okay. Annually, it would be around INR 50 crores. 55 crore-INR 45 crore. Yeah. Yeah. Okay. Thank you. Thank you. Participants, you may press star and one to ask a question. We have the next question. Yes. Just one second. We have one question just come on the chat. So in terms of which has come on the chat is that operating cash flows have been a little soft in H1. So the question is, what is expected for EBITDA to operating cash flow conversion for the year? Yeah. So thanks for the question. So very clearly, we are very confident that our net operating cash for FY24 as a percentage to EBITDA will be 80%+ like previous years. Sir, you can take the next question then. Certainly, sir. The next question on the audio bridge is from the line of Abdulkader Puranwala from ICICI Securities. Please go ahead. Yeah. Hi, sir. Thank you for the opportunity. In terms of your productivity, so could you help us understand where is the scope for further improvement? Is it the new set of brands or you have launched in terms of the acquired brands or the line extensions where you believe the next set of productivity improvement would be driven? All across. All across. If you look at what we are trying to do in the world of cardiology, today, our productivity is higher than all India productivity. So that can also inch up. As what you heard earlier, our volume growth in our biggest two franchises is in big teams. Equally, we see huge potential in terms of what we are trying to do in our acquired portfolio. New launches will continue to contribute to the growth where productivity will inch up. And also, we have identified around 18-20 brands across company. That is three brands in every business unit, which are the anchor brands, which will drive the productivity. So all across, we see productivity. Our productivity should grow around 10%-12%. Understood. Sir. Second is on your broader aspiration to become the 15th largest company in the domestic pharma market. I mean, while I understand that the bridge is quite significant, but would this be largely met again by a few more acquisitions or any particular area where you think you can create a sizable value for yourself? So first of all, I don't know from where this is coming that we want to become the 15th largest company. Today, we are 22nd by value and 16th by prescription. If you ask aspiration, we want to inch up in terms of where we want to be in terms of prescription. We want to be in top 10, by the way, in terms of prescription. Today, we are 16th rank. So that is what is in our hand. And what was shared earlier, we will continue to deliver better performance as compared to market. Market will grow at around 8%-10%, and we should grow better than the market. So very difficult to say in terms of gaining ranks. We are happy where we are today, but we would like to increase our ranking in prescriptions with all our big brands: Rantac, Metrogyl, Sporlac, Razel, Nicardia. All those will contribute over a period of time to improve our prescription ranking. Understood, sir. Then final one on your CDMO business. So I understand that there was certain deceleration in H1, and H2 will be a little stronger. But I think we have previously guided that in the long term, we aspire this to become like a 100 million kind of a business segment for us. So I mean, are we still retaining those guidance, or you would like to update that to us as well? I just want to add this question was answered earlier, but let me once again share with you in terms of so our aspiration to be $100 million shares as is with the work that we are trying to expand in newer geographies, which is a combination of getting into Brazil market, getting into Europe market, getting into U.S. market. Those are the things that we are attempting, which will happen probably in medium term. Equally, getting into newer category of lozenges, which we have been talking next year. What we have been talking of getting into lozenges, which are melatonin-based, which should happen next year. We have been talking about getting into immunity and wellness lozenges, which are already there in our European market. It will be in three European countries. Probably next month, it will be available pan-Europe and other more countries. Also, you should see us getting into new dosage forms of drug delivery, be it a combination of stick pack, throat spray, newer partners that we are trying to get into across the globe. So all these are in place. What earlier was shared, that the aspiration to be a $100 million company in CDMO stands as is with right partners that we have got and equally the capacity that we have got of 2 billion lozenges, which can happen in three years, which can happen in five years in the coming time. Got it, sir. Thank you. And wish you all the best. Thank you. Thank you. Participants, you may press star and one if you wish to ask questions. There's another question on chat. The question, there are two questions. One is, how do we see the performance of the India business in H2 of the year? And how has the performance been of the probiotic business in H1 of this year? What was shared earlier that Sporlac as a franchise, when we acquired, was INR 83 crores a couple of years ago. Today, it is INR 137 crores as reported in IQVIA MAT. And what we have done is done right life cycle management and better distribution and representation of our people in the clinic with Sporlac franchising. And we are very bullish on this. This is a INR 2,000 crore market. Still, we are scratching the surface. Huge opportunity in terms of what we can do with this franchise. Probably this is the sixth brand that you at some given time will see be in top 300 from JB. And overall, when you look at India business, we'll continue to deliver market-beating performance, which we have been doing for the last now three consistent years. Because of overall industry practice, you may see a marginal decline in Q4, but then also it will be in accordance with the market delivery, but this business will deliver good, healthy 12%-14% growth for S2. Thank you. Thank you. We have a follow-up question from the line of Rahul Jeewani from IIFL Securities Limited. Please go ahead. Yeah. Thanks, sir, for taking my follow-up. So, sir, did I hear you correctly that the CapEx investments, which have slightly increased, is for investments into the IVF segment? No, no, no. It's not IVF. It's basically injectable IV products. So injectables for our rest of the world markets. It's basically for our export markets. So from a greenfield perspective, what Nikhil and Narayan were mentioning, there are two key dosage forms at least for this year. One, we are investing in throat spray, and the other is expansion in the IV products. Sure, sir. And sir, what is the current contribution for, let's say, these new dosage forms in the international business? The throat spray is essentially something which we are going to be doing for the first time. It's largely for our CDMO business with our main principal partner, and as far as IV products go, while we would not want to disclose from a value perspective, just to give you a sense, we have a capacity of close to 54 lakh units per month. That is something which we are expanding to 75-78 lakh units per month. This is for the injectable products? Injectable. Injectable. Yeah. Okay. Thank you. That's it from me, sir. Thank you. We have another question from the line of Sumit Gupta from Centrum. Please go ahead. Thank you for the follow-up. Sir, I just wanted to understand the launch just for the melatonin and pain. So when do you expect it to enter the market? Sorry, you're talking about melatonin lozenges? Yes. That is what I said. That will be available in some markets outside India probably next year. Okay. Okay. Understood. And for pain lozenges? Which one? Pain. Pain lozenges. Pain. Pain. Probably you should see that happening probably end of next year, starting FY27. That is Flurbiprofen in Brazil market in H1 of FY27. Yeah, yeah, yeah. Okay, sir. Thank you. Thank you. Ladies and gentlemen, that was the last question. I would now like to hand the conference over to the management for closing comments. Over to you, sir. Thank you all for participating in today's call. I think last two quarters, we have been delivering INR 1000+ crore revenue every quarter. Our EBITDA margin stands close to around 28%. We are confident that we end the year on a higher note, which is backed up by what we are trying to do in India business, which is growing better than the market. Equally, you should see some traction coming back in our CDMO business. We are all there in the company in terms of how we can chart our future and remain focused on making the organization more progressive and future-ready and create value for our shareholders. Equally, look at what more we can do to improve the quality of life of patients across the globe. Thank you. Thank you all. Thank you. On behalf of JB Pharma, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.