Ladies and gentlemen, good day, and welcome to Ajanta Pharma Q2 FY 2025 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing * then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Yogesh Agrawal, Managing Director of Ajanta Pharma Limited. Thank you, and over to you, sir. Thank you. Good evening, and welcome to all of you. With me, I have Mr. Rajesh Agrawal, Joint Managing Director, Mr. Arvind Agrawal, CFO, Mr. Rajiv Agrawal, AVP, Finance and Investor Relations. I hope the results are already there with you, so let me begin with the interim dividend. I am pleased to inform you that the Board of Directors have approved the first interim dividend of INR 28 per share for the face value of INR 2 per share, totaling to INR 350 crore. With this, the total payout in the current financial year becomes INR 701 crore, which is 90% of the cash flow from operations of the H1 FY 2025. This is in line with our commitment of prudent capital allocation. We will now take you through business-wide performance for the Q2 and H1, along with the comparison of the previous year's same period. Let's begin. We have completed first half of FY twenty twenty-five on a satisfactory note, with notable achievements in sales, PAT, and EBITDA. Branded generic business, which saw a healthy growth of 19% on the back of our strategic approach and focused execution. It is the result of our consistent effort, allowing us to strengthen our position as a leading player in the pharmaceutical industry. One of the achievements during the first half was our cash conversion ratio of 121%, which was possible through our concentrated efforts of improving working capital cycle. This will certainly help us to improve our returns on investment going forward. We are confident of sustaining this momentum and driving continued growth in coming quarters. Our excellence in terms of strategy and operational execution will enable us to deliver long-term value to our shareholders. Moving on to the business details. During the quarter, revenue from operations was INR 1,187 crore, a healthy growth of 15% from our total business, comprising of three verticals: branded generics, US generics, and institution business in Africa. During the quarter, 76% of the total sales came from the branded generics, which is spread across India, Asia, and Africa. The sales stood at INR 894 crore, hosting 20% healthy growth during the quarter. This business exhibits assurance, sustainability, and potential for the long-term growth. Let me now take up the international business, and I will first start with branded generic business in Asia and Africa, which contributed 44% to the total revenue. Let's start with Asia. In Asia, our presence spans across Middle East, Southeast Asia, and Central Asia, encompassing around 10 countries. In Q2, sales was INR 296 crore against INR 230 crore, a growth of 28%, and in H1, sales stands at INR 522 crore against INR 484 crore, a growth of 18%. During the quarter, we launched six new products, taking total tally to 13 in the first half in the region. Let's move to Africa. In Africa, the business is spread across over 20 countries. In Q2, sales was INR 213 crore against INR 157 crore, a healthy growth of 35%, and in H1, sales was INR 443 crore against INR 316 crore, a growth of 14%. We launched one new product during the quarter, taking total tally to three in first half in the region. The growth was little elevated in H1, but will be lower in H2, as we expect the growth for the current financial year to remain in line with our guidance of mid- to high-teens. Let us talk about other two verticals of international business now. U.S. Generics. U.S. Generics contributed 20% to the total revenue. In Q2, sale was INR 232 crore against INR 231 crore, posting a small dip of 2%, and in H1, sales was INR 460 crore against INR 451 crore, a growth of 2%. The growth is in line with our guidance of mid-single digits, as most of our launches in FY 2025 will happen in the last quarter of the year. Our superior execution continues to keep us as a preferred partner of choice for the distributors. In H1 FY 2025, we filed four ANDAs, received four final approvals, and launched two ANDAs. We have 46 products available on the shelf and 22 ANDAs awaiting approval with U.S. FDA. Let's now move to the U.S. institution business. This business contributed 4% in the total revenue, which comprised of anti-malarial product. In Q2, sale was INR 43 crore against INR 37 crore, posting a growth of 16%. In first half, sale was INR 85 crore against INR 102 crore, posting the growth of 17%. As informed earlier, this business remains unpredictable due to reliance on procurement agency schedule and funds. Now I invite Mr. Rajesh Agrawal, Joint MD, to take you through India business. Thank you, and over to you. Thank you. Good evening to all of you. I'm delighted to share key highlights of India business. Our performance has been excellent on the back of increased volumes and new product launches. India business contributed 32% in total revenue. In Quarter two, sale was at INR 386 crores, as against INR 355 crores, a growth of 9%. And in H1, sale was at INR 739 crores, against INR 674 crores, a growth of 10%. India business includes revenue from trade generic, which contributed INR 46 crore against INR 45 crores in Quarter two, and INR 87 crores against INR 81 crores in H1, in same period of FY 2024. During the first half, we launched four new products, out of which-- Pardon me. During the first half, we have launched eleven new products, out of which four were first time in the country. We continue to outpace IPM by 190 basis points, with Ajanta growing at 9.6%, surpassing IPM growth of 7.7%, as per IQVIA MAT, September 2024. This trend extends to most of the therapeutic segments we are in, where our growth has consistently outpaced the segment growth. In cardiology, our growth for Q2, as per IQVIA, was 16% against IPM growth of 10%, though on MAT basis, we still lag due to price impact in one of our major products. In the covered market, we continued to be fourth largest in IPM and among top 10 in all our therapeutic segments. As per IQVIA MAT, September 2024, our faster growth is contributed mainly by volumes, which was about 1.5 times to the IPM. Cardiology contributed 38%, followed by ophthalmology, 30%, dermatology, 23%, with remaining 9% coming from pain management in the India branded space. We have added about 200 medical representatives during Quarter two, taking the total tally to 3,200 plus. This addition was in line with our strategy of increased focus and expanding product basket in the existing therapies. I now invite Arvind Agrawal, CFO, to take you through the financial performance. Thank you, and over to you, Arvind. Thank you, sir. Thank you. Good evening, and warm welcome to the second earnings call of FY 2025. On this call, our discussions include certain forward-looking statements which are projections or estimates about future events. These estimates reflect management's current expectations about future performance of the company. These estimates involve number of risks and uncertainties that could cause our actual results to differ materially from what is expressed or implied. Ajanta does not undertake any obligation to publicly update any forward-looking statements, whether because of new confirmation, future events, or otherwise. We will look at the consolidated financials and provide year-on-year comparisons. The key financial highlights for quarter 2 and H1 of FY 2025 are as follows: Total revenue in Q2 stood at INR 1,187 crore against INR 1,028 crore, posting growth of 15%. In H1, the revenue was INR 2,332 crores against INR 2,049 crore, posting growth of 14%. These growths were in line with our guidance of overall revenue growth in low teens in FY 2025, on the back of maintenance growth in branded generics, mid-single digits in USA, and degrowth in Africa institution business. Our gross margin stood at 77% in H1, an improvement of 200 basis points from FY 2024. This was the result of higher contribution from branded generic business in overall revenue. We expect it to remain in the similar range, with quarterly movement of 50-100 basis points due to change in product mix. Personnel cost in Q2 was at INR 261 crore, an increase of 17%, and in H1, it was INR 545 crore, an increase of 25%, due to one-time charge of over INR 30 crore for change in gratuity policies become in Q1. Increase in medical representatives in India will see the cost slightly going up in coming quarters. R&D expenses was at 5% of total revenue. In Q2, expenses was INR 57 crore against INR 50 crore in H1 and in H1, it stood at INR 108 crore against 105 crore. We expect the expenses to be around 5% of revenue for this fiscal. Other expenses in Q2 stood at INR 353 crore against 259 crore, and in H1, it was 615 crore against 534 crore previous year, same period.... It may be noted that the other expenses include Forex loss, notional towards mark-to-market averages of INR 26 crore in Q2, and INR 18 crore in H1 of FY 2025. As informed in previous call, the increase in expenses are in line with our guidance due to increased SG&A expenses. The expenses in H2 are expected to be in line with H1. We achieved EBITDA margin of 26% in Q2 and 28% in H1. EBITDA stood at INR 311 crore against INR 291 crore, a growth of 7% in Q2, and INR 642 crore against INR 572 crore, a growth of 12% in H1 over previous year. If we ignore the notional Forex loss in other expenses, EBITDA for Q2 becomes 28%. We expect the EBITDA to be around this range, plus/minus 1%, for whole of FY 2025. Other income was at INR 19 crore in Q2 and 46 crore in H1 of FY 2025. It includes Forex gain of INR 12 crore in both Q2 and H1. Income tax stood at 25% during Q2 and H1. We expect the same to be around 24% for the FY 2025. In Q2, tax was INR 216 crore against 195 crore, a growth of 11%, and in H1, it was INR 462 crore against 403 crore, a growth of 15%. Tax stood at 18% and 20% respectively for Q2 and H1 of revenue from operation. We incurred CapEx of INR 130 crore in H1, FY 2025. CapEx, including maintenance CapEx for FY 2025, is estimated to be around INR 200 crore. There was improvement during H1, FY 2025 in working capital days from FY 2024. Inventory stood at 67 days against 73 days, and trade receivable at 81 days against 109 days. Payables stood at 74 days against 85 days. This is the result of our consistent effort in improving working capital cycle. In H1, FY 2025, we have generated a healthy cash flow from operations of INR 776 crore, with cash conversion ratio of 121%, and free cash flow of INR 322 crore with 70% cash conversion. ROCE and RONW continue to improve and be comparable to the best in the industry. ROCE stands at 34% and RONW at 26% at the end of September 2024. With these highlights, I open the floor for the question and answer. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wants to ask a question may press * and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press * and two. Participants are requested to 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 Sudarshan Padmanaban from JM Financial PMS. Please go ahead. Yeah, thank you for taking my question, and congrats on the excellent numbers. Sir, my question is to understand a little bit more on the other costs. So even if I, you know, remove this 25 crore FX, I mean, I understand that you did say that there is going to be an increase at SG&A. The amount seems to be on the higher side. So if you can explain, you know, whether the entire amount, you know, the increase that we see between the first and the second quarter, excluding the FX, is largely only the SG&A cost, or is there anything else? Second is, you know, if I'm looking at the SG&A cost as well as, you know, the sales and the launches, we are happening to see that, you know, we are growing much faster than the IPM, that's for sure. And the new launches is also something that, you know, excites us. In terms of volume, I mean, when I looked at it, while you know the industry itself is growing less than 1%, and we are growing at around 1.2% and new launches is about 3%, can you drive some, you know, color with respect to, you know, the, you know, investments that we are doing into MR expansion and probably, you know, the SG&A? How do you see the volume growth, you know, for yourself, you know, say, in the next few quarters and few years? Yeah. First part is... Okay, I'll answer the second part first. On the domestic business, as you have correctly pointed out, the industry volume growth versus Ajanta, we are growing at one point five times the industry volume growth. The number of addition in the medical representatives that we have done has been very strategic in with a view to optimize the coverages in the existing specialties more so. So we have added strength a little bit to the dermatology segment, where we have been doing exceptionally well for the last three years compared to the segment growth. We are also strengthening our pain management and also the cardiology. So this is what we have done. I think we should be able to continue to perform better than the IPM in the volume growth, even in the coming few quarters. ... on the first part of your question? Yeah. Sudarshan, I think, you know, as far as SG&A expenses are concerned, I think you must be remembering that in the first quarter also, I said that there are a lot of expenses which have not been done, and they will come in the second quarter. So if you take a full half year, you know, that is something which is the most reasonable amount which you should consider for the expenses side. Because as against INR 534 crores last year, we have spent about INR 616 crores. Out of this 616, if you remove that 26 crores, which is exceptional, then we are talking about 590, which is a very normal growth, which is there. Sure. So that should be the, you know, number that we should be looking at from a, you know, reasonably longer term, not necessarily taking every quarter into perspective. Yes, yes. Yeah. Sir, one strategic question from my side before I join the queue. I think we have done an exceptional, you know, you know, in terms of you know, investing in SG&A, in terms of you know, the MR productivity on, you know, the businesses, I mean, the sub-segments that we are strong in, that's typically of cardiac, ophthal, derma, and pain. You know, we see a very strong cash generation, I mean, particularly in the first half. How do you see yourself, you know, building, you know, your domestic franchise? Would it be more verticals to the four lines that you're talking about, or is there more deepening in the sense of segments of the same cardiac and ophthalmology that you're talking about? If you can elaborate how you plan to deploy the cash organically, inorganically, and, you know, develop the domestic side? It will be a mix of both. The way we have planned, we will definitely add more medical representatives to the current specialties in which we are present. At the same time, we are also exploring GTM, go-to-market strategies, to penetrate into some of the other newer specialties. So, as there is more visibility, we should be able to make up our mind, take the decisions and decide whether we want to enter those specialties. So that all of that will take another six months for us to you know, take a call on that. So it will be a mix of both. Sure. Thanks a lot, sir. I'll join back with you. Thank you. Thank you. The next question is from the line of Forum Parekh from BOB Capital. Please go ahead. Thank you for the opportunity. My first question is on the India business. So I see that the growth is of 16%. So I just wanted to understand, how sustainable is this 16% growth? Though I understand we would continue to surpass IPM growth, but would it be in this high mid-teens, or can we expect a lower double digit run rate going forward? I think, Forum, 16%, which growth we are talking about? Because, India business for the quarter has grown only 9%, no? Okay, as per the IPM. I think one of the specialties is what you are referring to, so- We are talking about cardio only. Okay, so 16% growth is of the cardio business. Yes, correct. Yes, yes. Okay. So overall, we should expect 9%-10% kind of run rate going forward. Absolutely. Absolutely. That's correct. Okay. Okay, got that. And second question is on the Asia side. If you could just explain, what is going right, I mean, what is strengthening our growth in the Asia region? It's increase in the market share on the existing products, and there have been new product launches which we have done. And also we've added the people, as you would have seen from our field force rate in last two, three years. So combination of all these three, it is resulting into the healthy growth numbers for the Asia. Okay. So we can expect the same run rate going forward as well? Yeah. So I think for the quarter, we've grown. We posted around 10% growth on this. So I think, yes, we are fair to take that kind of run rate going forward for the next quarter. Sure. That's it from my side. Thank you. Sure. Thank you. The next question is from the line of Ankush Mahajan from Axis Securities. Please go ahead. Thank you, and congrats, sir, for the good set of numbers. So my question is related to the US business. Now, the US run rate is $222-$230 from the last two quarters. So try to understand, sir, if you throw some more light, what we are strategies in the US market, for the next two, three years, how... What kind of run rate that we can look, and what are the new launches that we can expect in the US market? So, we've had limited launches so far in the first half, and I think that based on the price provisions and the new, the methods required. This is a guidance we had given at the beginning of the year itself, that U.S., for the current year, will be a single digit type of growth, which we'll be looking at. And things are going pretty much on the similar line. So I think, we've launched only two products in the first half. But in the next half, as I said, we will be looking to launch around four products. So our growth rates will be slightly skewed towards the Q3 and Q4. I think next year onwards, hopefully, we have more approvals, and we'll be able to launch more products. The growth rate for the next year onwards, I think will be the same, but it could be higher than what we are currently projecting for the current year. Sir, what kind of run rate we can expect in upcoming quarters? It can be slightly higher than what it is right now. Thank you, sir. Thank you. Yeah, yeah. Thank you. The next question is from the line of Abdul Kader Puranwala from ICICI Securities. Please go ahead. Abdul Kader, please go ahead with your question, your line is open. Yeah. Am I audible? Yes, you are. Yes, you are audible now. Yeah, sure. Thank you, sir, for the opportunity. So my first question was pertaining to the second half of fiscal twenty-five in terms of revenue growth. So, for this quarter, we saw good growth in Asia and Africa, but I think in your opening remarks, you mentioned that Africa will closely move to that mid-teen kind of a growth, while your India growth is also now expected anywhere between 9%-10%. So, when, you know, could you help us understand where, how should your second half of fiscal twenty-five look like? And second, yeah, so that would be my first question. As we have guided for the branded generic business, for the whole year, we had given the guidance of going into the mid-teen. So we feel that we are on course to deliver that kind of numbers for the branded generic business. The percentage of growth in different territories can go up and down. Let's say right now, Asia has been higher, it may taper down, Africa may continue at a higher level. I think combination of India, Africa, and Asia, for the whole year, I think we feel comfortable in giving the guidance of the mid-teen. Whereas for the US, as I said, it could be in the low single digit to mid-single digit for the US business. Institution is very unpredictable, so we don't give the guidances for the institution business. Got it, sir. And, so my second question is pertaining to the freight cost. I mean, sir, any improvement what we are seeing into the kind of growth we are witnessing previously or any volume coming through also? No, actually, the freight cost remains almost at the same level as we mentioned. You know, it has been elevated because of that Red Sea problem. So as we mentioned, the annual burden was about INR 30 crore. So in the half year also, there is some impact of that, which is definitely there. Got it. Thank you. I'll join that question. Thank you. Thank you. The next question is from the line of Kunal Randeria from Axis Capital. Please go ahead. Hi, sir. So on the Asia branded business, has the non-Philippines, non-Iraq contributed a lot more than the normal? What do you think? Non-Iraq, yes. Sir, we don't give you a breakup of the Asia. It's a combination of that. It doesn't really matter. We look at Asia as one, one territory, and this is what we share. So yeah, unfortunately, we will not be able to give you a breakup of the Asia business. Sure. Not a problem, not a problem. Okay, sir, second question again is, you know, the fact that you have distributed INR 350 crores as dividend, I should assume that there is no inorganic activity on the horizon? Inorganic activity, as of now, well, clearly, we don't have anything, so, but we can't rule it out for the future. Anyway, Kunal, one thing which is, I mentioned last time also and now also I can repeat, that, the M&A activity will not be dependent on this. Because I will have, the flexibility of, you know, borrowing at any point of time if there is, some good proposal which is there in hand. So at the moment, there is nothing, so we are distributing because that's the better way to utilize the capital. But at any point of time, that is not going to be dependent on whether the cash is available or not available. Right. Right. Yeah, and just one more clarification. You mentioned that you added sales rep in the Derma division, right? Yes, Derma also in. Yeah, go ahead. No, so my question is, you know, maybe if you're going to add two, three hundred every year, would it be largely Derm specific, or it's just maybe across the board? No, it will be across the board. We are also looking at some incremental additions in cardiovascular, also in pain management. So it will be across the specialties. Right. And this two, three hundred adding, would it be annual kind of an event, or is it just for this year? So as of now, we have added those many for the first six months. Again, as I said earlier, the strategies are still being chalked out, and there is no set particular number that we have in mind that those are the number of medical representatives we'll add every year. So as and when opportunity presents itself, we will be adding. We are hopeful that in the next six months, we will add some more in the current year itself. Not certain yet as to how many. Got it. And just one more, if I can squeeze in. In the last two or three years, you've added sales force in Asia and Africa. So are you still adding in those geographies, or is it done for now? ... Not significant, no. There will be minor incremental additions. The bulk of the additions which we have done, I think that holds true. There could be incremental, maybe 2%, 3%, 5% at the most addition. It will not be a sizable one. Got it. Perfect. Thank you and all the best, sir. Sure. Thank you. The next question is from the line of Tushar Manudhane from Motilal Oswal Financial Services. Please go ahead. Yeah, thanks for the opportunity. Am I audible? Yes, Tushar, tell me. Sir, on the gross margin side, maybe if I would have missed the comments, like sequentially, the proportion of branded generics is largely stable, but still the gross margin has improved by at least 130 basis points. So if you could, you know, help us clarify that. It depends on the product mix, actually. So, you know, even within the, you know, business also, in the branded generic business, there are different segments, et cetera, so it all varies from that point of view. Okay. So similar gross margin can be expected for the coming quarters as well, right? Depending on... So that's why I said variation can be there of 50-100 basis points, depending on the, you know, product mix which is there, or the business mix which is there. Understood. Sir, dear participants, in one of the comments you highlighted that, I mean, as far as the Asia business goes, it will be like 300 crore quarter run rate for the next two quarters. Is that the guidance sort of to take for Asia business? Yeah, we can consider it that way. That's what the MD indicated just now. Got it. So Africa business, given that the base is sort of low in second half of fiscal 2025, and India business also growing reasonably well, we have already done 20% in branded generics for first half. So, is mid-teen sort of a growth of full year 2025, like, sort of too conservative? No, I think that's a realistic growth which you can expect. I think Africa, the current base, I think it will taper down for the next quarter. Asia will be the same. But I think overall basis, when you put everything together, India, Asia and Africa, I think mid-teen is a realistic number which we feel is available. Got it, and sir, lastly, I just missed on the EBITDA margin guidance of full year twenty-five, if you could repeat, please. EBITDA margin guidance for the whole year from the beginning we said 28%, plus or minus 1% can be there, depending on the market conditions and the product mix. So we're still holding true to that. I think for the whole year, 28% plus, minus 0.5% or 1%, that is the variation which can occur. But I think that is a realistic thing which you can consider. All right. Thank you. Yeah. Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press * and one. Participants, you may press * and one to ask a question now. The next question is from the line of Rashmi Sancheti from Dolat Capital. Please go ahead. Yeah, thanks for the opportunity. Again, on this, Africa branded business, you know, the quarterly sales have actually declined quarter on quarter. Is it something related to seasonality or, you know, the supplies were higher in quarter one and that's why it got adjusted in quarter two? And you also mentioned that in the second half it would taper down. So, you know, if you can just explain, you know, the strategy. Is it something the seasonality effect or, you know, more to do with the supply chain? In the Q4 of the last year, our sales were slightly on the lower side, which was about INR 113 crore. That time we had mentioned that, because of some supply disruption that time, I think it was some strike or currency or something was there. Yes. So that's why some of the sales got pushed out into the Q1 of this year. So the Q1 was slightly having the FX of the Q4 pushed out into the Q1. Yes. If you see from that, Q2 and Q1 are quite comparable. So for the whole year, I think we should be in a healthy position. I think the quarter to quarter, year over year, the quarter over quarter, they can have variations for the different reasons. They are not like sequentially. So best way will be to see the year-on-year growth. I think that kind of averages out the season variance. So roughly in second half, we should see the same kind of 400 crores plus sort of sales, like 213-220 crore of sales for quarter ended. It should be the stable sales more or less then? No, no. For the next quarters, run rate will be slightly lower than this. So- Okay. Yeah, yeah. Got it. Got it. And that is the reason, you are guiding for the, you know, mid-teen sort of growth even in Africa branded business? Correct. Correct, correct. Okay. And one bookkeeping question on the interest expenses. You know, interest expenses have gone up significantly in quarter two. You don't have any debt, but you are incurring interest on right-of-use assets or, you know, in that component. So, you know, anything to do with that, you know, what is the number that we should look for the whole year? Because the number is pretty high year over year basis also, and on quarter on quarter basis also. ... Agreed, Prashni, I think you are right. So that is a little bit of elevated thing. It may remain little higher than this, because what is the amount which is there. You can consider that for the next two quarters. The amount which is there in the quarter two, you said, right? Yes, quarter two. Okay. Okay. Thank you, that's just for now. Thank you. The next question is from the line of Pankaj from Edelweiss PMS. Please go ahead. Yeah, good evening. Just on the working capital, the company has done a fabulous job. Sorry to interrupt you, but we are unable to hear you. Can you hear me now? Yes, please. Yeah, we can hear you now. Yeah, yeah. So on the working capital, all of you have done a great job on receivable days and inventory. Yes. Is it the optimum level, and what has led to such sharp improvement on receivable days? It's really heartening to see. If you can just help us share, your thoughts on the same. And the second point is that, you know, from a whole business perspective, India business, Africa, Asia, all are doing well. Yeah. But what are the other optionality for growth we are creating, so that the way we saw in some of the other listed companies, like, for example, Torrent, over a period of time, different acquisitions helped them become a very large company. What are the other optionalities, from a growth perspective if you take a three- to five-year view, is the company working on? These are my two questions. Yeah. So let me take the second question first. So we are looking at multiple growth driver. One is we have a very strong and rich product pipeline under approval in various countries, as well as under development in the R&D, which we launched in the existing market. Number two, we are also looking into branching out into the some other more therapeutic segment, and they are very actively at advanced stage. They'll be taken up for the execution in maybe quarters and next coming years. In different territory, it may be executed at different point in time, so that will be the second growth driver. As you have seen that we have last two, three years, we've done a very big ramp-up in the field size in the international market. As Joint MD has mentioned, for the first half, we have addition of two hundred. There will be some more addition during the year. That will be another growth driver which is there. Fourth is we are actively looking at entering into the new markets also. It's pretty premature for me to comment which countries and all, but there is some action which is there. Our BD team is actually working very actively there. There will be a number of initiatives which are there to help sustain the growth momentum. In terms of acquisition, it is very difficult for anyone to time it. We'll see what opportunities we get and where we are in that point in time. If that happens, then that could be another addition for the growth driver. So I think we have multiple growth drivers in place, which should be able to help, you know, continuing the growth in future. Okay. Okay, great. That's clear. On the working capital, if you can help us understand what has led to such sharp improvement, and is it more sustainable in nature from a cash perspective? Yeah, I think, as you must have seen, the branded generic business has gone up substantially, and whereas USG is not growing much. So and branded generic, the time, the number of days is very, very low compared to U.S. So that's why you are seeing this improvement which is coming in there. And there has been some improvement in the collections from the U.S. business, so I think combination of this. That's good, so probably from an overall receivable and inventory days- Yeah. Can we assume barring some, you know, deviations, this probably could be sustainable now? Because we won't be growing US as aggressively as we were thinking earlier. Yeah. So this will be more of a representation of the steady-state nature of the business. Absolutely correct. Absolutely correct. Agree, agree. So the cash flow generation could be quite strong as you move ahead as well. Yeah. Thank you. All the best. Thank you. Thank you. Thank you. Thank you. Participants who wish to ask a question may press * and one. The next question is from the line of Vishal Manchanda from Systematix. Please go ahead. Good evening, and thanks for the opportunity. In India, in the cardiac and the pain segment, can you share the growth of the covered market and, Ajanta Pharma's growth? So the covered market growth. What is the? You want it for Q2 or MAT? Uh, Q2. For Q2, we have substantially outpaced the covered market growth in the cardiology. We are at 16%, whereas versus the covered market is at 8%. So, as I said, this now in Q2, the material impact, the price reduction that had happened in the year before last has also almost gone away, you know, except for a month maybe. So the growth rate has bounced back, and similarly, in ophthalmology, we are growing substantially faster than the covered market growth, and so is the case in dermatology and pain. All the four segments. Okay. And is new product launch the larger driver for the growth? ... No, almost at par with the industry, maybe slightly better. For the industry, the growth, being contributed by new brand launches is 2.7%, whereas for Ajanta it is 3.1%. So it is better than the industry, but, almost in the same range. It's mostly the volumes. Okay. And, just one final one. In the, in your core markets, within the emerging markets, by how much would you be outpacing the market growth? In the emerging markets in the sense, Asia, we have done well. I think so market-wise, as we said, we don't share the breakup of individual markets. But in the region-wide, you have seen the figures already in, Asia, in the branded generic as well as in Africa, branded generic. We have done substantially better than, our own last year performances, as well as compared to the industry group, industry growth rates. Okay. That is all. Thank you. Thank you. Thank you. The next question is from the line of Chandra Gupta, an individual investor. Please go ahead. Yeah. Am I audible? Yes, you are audible. Yeah. Okay, yeah. Thanks for this opportunity. Sir, my question is about this Janaushadhi, you know, generic stores that government is very aggressively pushing for. So how do you view the challenge from Janaushadhi, and what strategy we have to counter it? Yeah, no, so, you know, yes, you're right. The government is very active on the Janaushadhi front, and they would like to increase the number of stores, outlets of Janaushadhi. The way we look at it is that is, you know, in a way complementing or serving the underserved market. And, and there is no competitive strategy or there is no competition against Janaushadhi in itself. So in that sense, it's bringing in lot of unused or kind of underserved market into the pharma market. So that's, that's all that is there, honestly. But if you look at the overall retail against, let's say, lakhs and lakhs of current chemists, Janaushadhi is still less than fifteen thousand stores. So in that sense, it's, it's not, it's not the most significant challenge as such for the industry. So they are not gaining market share at the cost of branded products, is that what you are saying? Hard to say that, because as I said, the composition of the entire retail market against seven to eight lakh chemists versus 15,000 Janaushadhi stores. So we don't have a quantification from any third-party agency. But my guess is that's not the biggest issue or they're not gaining as much as one would, one may think on a larger scale. Okay, yeah, one final thing. How much is our NLEM portfolio now currently? 12% is the coverage. So our 12% of our sale is covered under NLEM price, you know, restrictions. Okay. 12% of the total NLEM, right? No, no, 12%- Of India NLEM. Of the India, yeah. Oh, okay, India. Okay, okay. Okay, that's all from me. Thank you much. Thank you. Yeah, thank you. Thank you. Participants who wish to ask a question, they press * and one. The next question is from the line of Forum Parekh from BOB Capital. Please go ahead. Thank you for the opportunity again. Sir, I just wanted to ask, with three, four growth drivers you alluded to one of the participants, may we assume that EBITDA margin going forward, maybe in one, two years down the line, we can surpass 30% like other domestic-focused companies like Torrent? So, Forum, normally we don't give the guidances for the future years. We restrict our guidance to the current year, which is in the operation. Having said that, it's all going well. We have said in the past also, there is a possibility to expand the EBITDA margin. As you rightly said, if all those things play out and the cost structures are put in control, there is definitely a possibility to expand the EBITDA margin. So how much and all, I think once we finalize the business plan for next year, that is the time we are in a better position to share the guidance for the next year. Okay. And, sir, my second question is on the trade generic side. So could you please elaborate, like, how is this segment shaping out? And what, I mean, at what percentage is this segment growing, and what are the drivers for the growth? So we primarily, you know, segment is recording a fair bit of growth. Again, we don't have the industry. Pharma industry does not have a detailed breakup of it. It's not so closely tracked by any of the third-party independent agencies. So that's an, that's a restriction or a constraint there, let's just say that. But as we understand on a broader level, the growth rates are pretty healthy. And, and what is driving the growth is the same usual margin expansion that is there for the trade and the channel. That is the only growth driver for... Of course, many companies are much more active in the trade generics space.... So that is another factor that is playing out. Okay, and what would be our contribution to the trade generics portfolio? Our contribution is, in terms of percentage to the domestic, 11%. Okay, and do we envisage to take it somewhere further or it would be hovering around the same levels? I think more or less it should be around the same level, because we are also posting good growth on the pharma business side, and with generic, trade generic also growing and pharma business also growing. I think to answer your question, overall, at a composition level, it should be around eight to 10%, so I don't see that mix changing significantly in the next one or two years. Okay. Got that. Thank you. Okay, bye. Thank you. Ladies and gentlemen, to ask the question, you may press * and one. The next question is from the line of Individual Investor. Please go ahead. Hi, thank you so much for the opportunity. Just two questions. Question number one is on the domestic side. We had discussed some time back about the gaps in the portfolio. So where we are in the core in some other therapies? That is question number one. And question number two will be if you can comment on the emerging market, MR productivity. Thank you so much. So on the domestic, you wanted to know on the newer specialty? Yeah. You were not very audible. Can you come again, Shrikant? Yeah, yeah, sure. So, so there was a discussion that there are portfolio gaps in our therapies. Correct. So where we are in entering in new therapies? Look, as I said, the evaluation, we are at an advanced stage of deciding as to how and what will be the go-to-market strategy. So we are at an advanced stage for the new specialties. In the current specialties, we are addressing the gap areas wherever we don't have the coverage or if we already have the coverage, but the segments are very large, it can, you know, it can definitely have newer brands with new innovative products coming in. So that is how we are trying to play it out. Just slightly pressing here. If you can share, if possible, of course, the therapy that we are thinking about entering at some point of time. It will be too early. I would rather talk about it once we have, you know, made up our plans. It will be too early and it would not be a wise thing to do at this stage. Understood. And on the MR productivity trend in the emerging market? The productivity is around 7.5 lakhs, approximately. Understood. Thank you. Yeah. Thank you. Participants who wishes to ask a question may press * and one. Anyone who wishes to ask a question may press * and one now. As there are no further questions, I would now like to hand the conference over to Mr. Yogesh Agrawal for closing comments. Thank you everyone for joining this call. I wish everyone a very, very happy Diwali. In case, if there are any further questions that remain unanswered today, please reach out to our investor relations. Thank you. Happy Diwali to you all again. Thank you. Thank you. On behalf of Ajanta Pharma, that concludes this conference. Thank you for joining us. You may now disconnect your lines.