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 star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. R.K. Baheti. Thank you, and over to you, sir. Thank you. Well, good afternoon, I thank everyone to join our third quarter results call. Straightaway, I'll go to financials. During the quarter, our total revenue for the company grew by 8% to INR 1,631 crore. EBITDA also went up and is INR 269 crore, which is 16.5% of sales, and net profit grew by 48% to INR 168 crore. During nine months period, I mean the cumulative up to December 2023, our revenue grew 11% to INR 4,712 crore. EBITDA is INR 697 crore, which is 15% of sales and grew by 22%. Net profit is INR 438 crore, it grew by 42% versus Y-on-Y. Before considering non-recurring items of corresponding period, EBITDA and net profit are not exactly comparable with the previous year's corresponding number, as almost INR 64 crore and INR 180 crore of cash expenses and INR 1,437 crore of depreciation and in exchange 1,003 and 9 months, respectively, for new manufacturing facilities, which were, you are aware, earlier capitalized. So from first of January 2023 onwards, we have started charging of all expense to P&L. Our gross margin stayed at around 70%, which is healthy. EPS for the quarter before non-recurring items is 9.18 per share versus 6.76 in the corresponding period last year. Cash flow and borrowings. The company generated a healthy cash flow, INR 652 crore over 9 months period, December 2023. After meeting its CapEx as well as working capital requirements, net cash inflow was INR 309 crores, which was used in paying dividend and repayment of borrowings. The gross borrowing is reduced to INR 575 crores as compared to INR 686 crores on December 2022. The company has about 156 crores of cash in hand versus 146 crores last year same period. I will now hand over the call to Shaunak Amin for discussing the India business and the international business. Thank you, Mr. Baheti. The, despite the muted demand in the antibiotics and respiratory market, the India business grew by 9% to INR 596 crore. The specialty therapies performed better than the market. Gynecology, gastro, anti-diabetic and ophthalmology therapies outpaced the market growth. We performed relatively better than the market in antibiotic and respiratory segments on the higher base in the previous year, 2023. New launches continue to do well, with promising future launches across these segments. Animal Health had a fantastic quarter, and this is a business that's been doing very well for us. It grew by 32% during the quarter. Coming to the international business, we had a very satisfactory quarter with exceptional growth in the ex-US generics. The US business also grew 9% on the back of 11 launches. The US business is looking on a better wicket right now, with new facilities already commercialized. As they ramp up, we will get a lot of operating leverage and cost improvements are also on track. There is no further large CapEx needed for the international business, and we will have only maintenance CapEx, as well as some API expansion, including in therapies such as GLP-1 and bevacizumab. The API business has been very strong for us over the last couple of years. The de-growth this quarter was due to lower offtake from a few select customers and sustained lumpy. I expect another quarter or two may be weaker, and then I think we should be back to our regular growth rate that we've demonstrated in the past. R&D expenses were at 7% of sales at INR 114 crore for the quarter. As we've been saying in the calls the last couple of years, our goal was to bring this down, and we are constantly optimizing this and improvements are on track. We filed 5 ANDAs during the quarter and cumulatively end up filings at 257. We also received 7 approvals and launched 11 products. We should launch over 5 products in the next quarter as well. The business, the US generics business grew 9% to INR 474 crores for the quarter. The ex-US grew by 32% to INR 272 crores, and the API business did grow by 11% to INR 289 crores. With that, I would like to open the floor for question and answers. 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 their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets only 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 Rashmmi Shetty from Dolat Capital. Please go ahead. Yeah, thanks for the opportunity, and congratulations on good set of numbers. One question on the other expenses. You know, just excluding the R&D, other expenses were pretty low, and my assumption is that last time, you all said that, you know, INR 60 crore-INR 70 crore we are already expanding the new facility cost. So is there any one-off included in this or, it is basically because of the cost improvement program? And what are those cost improvement programs, and whether this number will be sustainable or not in the future? So, you know, I'm taking this. So I think the numbers are exact numbers, but I think what we have said is R&D, we said we'll keep it at around INR 500 crore or so for the year, and we are on track. We have already started charging off all the expenses from new facilities, which were earlier being capitalized. And the numbers are in line, and I think they are the numbers which somebody can take the base. Okay. Okay. And in your US business, you know, you know what kind of price duration we are seeing? Whether, you know, we have already done 20 launches in nine months, and I think that was the guidance. Any more launches are we expecting in quarter four? Yeah. So, two things. One, it's tough to say on the, on the price erosion in the market, because it's a factor of multiple products. Generally, it is little lower than what we had, last year, but it still exists. It's product to product. It can range anywhere between 5% to 50%, depending on the incumbent who comes into the market. But it's a little better, so we don't comment on it. It's very tough to give a number for the price erosion. As regards new launches, yes, I think we will continue doing it. And then my opening statement, I said that, we will launch about at least 5 products in the fourth quarter as well. How many products? Sorry, I did not get it. Five, five products. At least five. Five products, okay. And what is the guidance for FY 25, you know, for the launches? We haven't given the guidance, but I expect at least 10-15 launches. 10-15 launches. Last question is on tax rate. You know, what should we take it for this year? Because you are 9 months because of the deferred tax, the tax rate has come down. So if you can give that, and what should we take it for, next 2 years? So that's a, I mean, complicated number on profit for the purpose of calculation. So I think we get some coverage on impairment losses, et cetera, and that's how the tax rate is here. Any number would you like to share for FY 25? It should, is it that we should take 17% to 18% in FY 25? Yeah, that's it. The normalized tax rate, right? Yes. Okay. Okay, sir. Okay. Okay, sir. Thank you so much, sir. Thank you. Just a reminder to all the participants, you may please press star and one to join the question queue. The next question is from the line of Damayanti Kerai from HSBC Securities and Capital Markets (India) Private Limited. Please go ahead. Hi, good afternoon, and thank you for the opportunity. My question is again on R&D. So, looking at 9-month number, you are very much in line with your, you know, earlier guidance of INR 500 crore or below. So how should we look at your R&D approach ahead? Because, obviously, you are optimizing R&D costs, but, like, how do you build up a pipeline for US? And, you can also talk about, like, the kind of products where you are, spending majority of your R&D focus as of now. Yeah. So if you see a broad R&D spend, right, I think what has happened is we don't give a segment-wise breakup. But I can give a flavor of where we are and where we intend to be. So I think about 5-7 years back, it was only OSD. As we went in today, if you look at it, you have OSD, you have the R&D, the API, the chemistry bit, you have injectables, derm, you have ophthalmic. These are the broad areas that we are spending on. What's happening is OSD, as a percentage, has of the total mix come down. Derm has come down because derm was always a portfolio that we had to do. We've done a bulk of that portfolio, so derm has come down quite a bit. So those are the two areas where we've seen a reduction. Where we've seen, either flat or gentle increases is on the chemistry side and the injectables, as we build up a more portfolio of injectables. And injectables will continue growing, moving forward. Injectables and ophthalmic. Okay, so OSD, derm, as you said, has come down in a way that you are trimming or optimizing costs here and spending more on newer growth areas like injectables. So, as of now, can you just give us some indication, say, out of 100, how much is derm plus OSD as a part of your pipeline, and how much is the newer growth areas? As I said, we don't give this breakup, you know, because it keeps changing, and it is lumpy also, so we don't give this breakup of segment-wise R&D spend. Okay. And, Pranav, did you mention in your opening remarks that you are focusing on or you're working on GLP-1 drug also? If yes, can you comment a bit more about it? Yes. So I think that's an interesting area that is there. The, the P4, the launches are still little away, but these are interesting APIs and formulations. We've got peptide capability as well. So yes, we're looking at entering this segment. We'll start with it, so we can get some of the filings done, and we'll see how it goes. So sorry, filings you haven't started. It, it's in development right now, but you are targeting most of the opportunities here? Okay, and my second question is on your you know utilization on the newer plant. So in your press release, saying that you'll be seeing better pick-up or better supplies from the new plants in coming quarters. So so like, how much you have covered the space so far in terms of utilization for new plant? Utilization still—okay, again, you have to peel through the layers to see the utilization. In certain areas, we are doing pretty okay. In certain areas, okay, bulk of them, we are still, we're quite low, and we'll pick up as we go along. The way I anticipate it is, our timeline, we should be near, like, practical, like, what is a good capacity utilization another six months. Our line line should be okay in a, in another six months. On the oncology side, we're seeing good pick-up and, on oncology injectable side, we're seeing good pick-up. The two areas where we will have some capacity, which will take a little longer, but that's okay, that's just the nature of the business, because these are later expiring products, is on the OSD side of the oncology and on the PFS side of the injectables. Sorry, which part of injectable? I didn't get... On the PFS. Oh, PFS prefilled. Okay, okay, got it. Yeah, as far as capacity utilization, there are some products which are more than take care of that cost that we get those launches, but on the capacity utilization, I was talking about. Okay, and so next year you said 10-15 launches in the US, so I assume that these kind of launches, like 25 this year, if you do like another 5 in fourth quarter, and then in 2025, you are targeting 10-15. So that should be reasonably picking up your plant utilizations, right? Yes, absolutely. I think what's happened with the launches this year, as we gradually get market share and with the new launches that come in next year will help with the... Apart from this, we also have some CMO opportunities with this with some of the lines, so those will also help with the plant utilization. Okay, that's helpful. Thank you very much. Thanks for your answer. Thank you. Participants may press star and one to ask a question. The next question is from the line of Anushka Vora from Vimana Capital. Please go ahead. Yes. Hi, sir. Congratulations for the good set of numbers, and, thank you for this opportunity. So, I had a couple of questions. I've just recently started tracking the company, and I had a couple of questions. The first one was, among all your geographies, will the ex-US be a major growth area going forward? Yeah, so the ex-US, so we have a different strategy. And if you see the last few years, I think the last five years, I believe our CAGR is about 15%. So we've been growing pretty well in these territories. I think the large territories that we participate in, or we participate through partners, is Europe, Canada, Australia, Brazil, South Africa. These are the big ones that we do, and I think we've done pretty well in that, and I think that will continue growing as a territory. Okay. Thank you. Thank you, sir. That was very helpful. And my second question is around the API business. So, how is our API business performing from realization and a margin point of view? And how do we see this realization going ahead? Is it majorly going to be volume driven? So, the API business has been a pretty good business for us. I believe the last four, five years, if you look at the CAGR, must be about 8% to 10%. So it's slowly and steadily growing. We have a very good quality of API business, and that, I mean, is we have a good bunch of customers all over the world that we've done pretty well. I anticipate moving forward, this business will also continue growing. I think a quarter or two may be a little lower, a little slow, because we had some big business which is a little lumpy, which comes once every three, four, five quarters. That's what causes a big bump. So I think maybe that won't be there, which ends a quarter or two, maybe a little lower, and we start increasing it again. API business is a good margin business for us. It's a decent, a bit, decent, margin for us. Okay, sure. Thank you so much, sir. This is very helpful. All the best. Thank you. Thank you. The next question is from the line of Chirag Dagli from DSP Mutual Fund. Please go ahead. Yeah. Hi, thank you for the opportunity. Just, you know, you've launched about 11 products in the third quarter. Overall, over the last 2 years, you probably have about 30-odd product launches, and typically, you've said that you gradually build up market share. In how many of these that you've recently launched is your market share still suboptimal, where you think you can, you know, go up? So, you know, Chirag, in this, the way I would like to answer this question is, and what I've always said, that it's not always a question about market share; it is a question of what price you get in the market. Just pure market share doesn't make sense. You don't want to burn up your capacities only to sell at cents, you know. So it really depends. We don't have a target market share that we get into. We want to see where we can make the most money. And I think from when we approach this idea, there's some products where we're a little lower than the market, but I do know that as time goes by, we will get opportunities in them. But you're right, we do go a little slower. I think I don't have a specific feeling, you know? It's yeah, we could do better in some products. It depends on what price, you know. Understood. You know, this $57 million a quarter kind of a number that we've done, is it like absolute base for now, or is there still anything which you fear can be lost, you know, in terms of pricing, et cetera? So I think with the US, what happens is, I think this is the new base. So there's no certain, there's no huge chunks of that, in the business anymore, right? I mean, you get two small one-time opportunities, which you get every quarter, so that can take it. So it is the base, you know, and, okay, if it, if it's gonna even keep moving forward, yes, and I kind of anticipate this would be the new base or, you know, $50, $54, $55 could be the new base. I can't predict that because it really depends on the next guy. Some new incumbent comes and decides to drop the prices even further, then that may, then we may walk out of the business. We may say that it doesn't make sense with the penalties to do it. As of now, yes, this is the base it seems. Understood. From just an environment standpoint, Pranav, any new thoughts that you have, you know, for the US market in terms of what's changing, whether we are better placed or, do you still continue to think that, you know... So, good question, Chirag. I think as I said in the, I think the US market is looking a little better compared to where we were a couple of years back, two years back, a year and a half back. It is looking a little better. There is still, I think, supply being a good supply partner, still being, is still valued in spite of the price erosion that you see. And it's just, I think we have all the items in place, all the things in place, be it with the front end, which looks for opportunities, the back end, which can respond to the opportunities. So I think it's looking a little better, the US market. Having said that, the returns are down compared to what they were three, four years back, hence a lower R&D spend on the US side. Understood. Have we got any long-term contracts, Pranav? In the US generics? Yes. No, we haven't gotten into any of that because we're looking at it to see if it makes sense. While principally a long-term contract would make sense, but I think one has to read the fine print, and we're evaluating those if it makes sense for us. But so, competitors are getting long-term contracts, you are still evaluating, is the way to think about it? We have evaluated it. I don't like some of the fine prints, hence I haven't jumped into it. Understood. Perfect. This is helpful, Pranav. Thank you so much. Best of luck. Thanks. Thank you. The next question is from the line of Tushar Manudhane from Motilal Oswal Financial Services. Please go ahead. Tushar, your line is unmuted. You can please proceed with your question. Yeah. Am I audible now? Yes. Yeah. Okay. Sorry, sorry for this. So just on the US business again, like, at this base business of $57 million, so would we be profitable or, like, at a break-even? No, no, the US is profitable for us. So in the pecking order... The US is profitable. So domestic would be, being a legacy business, I'm assuming it would be in the range of 25% EBITDA margin. But overall, we are at... So we don't give a breakup of EBITDA margins. I don't think we've ever done that, so. All right, sir. Thank you. Thank you. The next question is from the line of Mr. Bharat Celly from Equirus. Please go ahead. Yeah, hi. Thanks for the opportunity and congrats for the good quarter from them. Sorry to interrupt. Mr. Bharat, your line is not very clear. If you are using the speaker mode, may we request you use the handset mode? Is it better? Yes, sir. Yeah. Hi, Pranav. Congrats for the good quarter from them. Just wanted to understand on US generics, so have you seen any growth in the base volume, base business volume? On the volume business side? No. Yeah, the US, yes, we are seeing an increase in the volumes of the business that is there. I think I think on a nine-month basis, we're definitely up compared to last year. Okay. Since you mentioned that you are still not clear on taking a new GPO, so a new contract, so what is the particular reason for that? Is it the pricing part or... No, no. Sorry. So, okay, so I'll, let me just, backstep a little bit and to the question that Chirag asked earlier. What is happening is that some of the buyers are trying to get into a long-term contract. Right now, in terms of long-term contract, a lot of them have approached us. We are still evaluating, we are still negotiating with them because one has to read the print, right? I think as a company, we have to see in the long run what is beneficial to us as a company and where the liabilities could be. And that is why we are just waiting and watching. We don't want to jump into it as yet. Okay. I get it. And sir, when we talk about US markets, how do you see from the new launches perspective, when you launch a new product, what sort of price erosion you see? When the price erosion for the incremental new products are very high, how do you see it? I think price erosion is tough to say. It depends, product to product. So an incumbent may come and, we've seen one product recently where it doesn't, we were there, the market was settled, a new person came, and they dropped it about, 40% to 50%. So you can see that kind of erosion also. But generally, it really depends. It depends on who the competitors are, what the volumes are, what the shares are. It's very tough to comment on that. I get that. And sir, and Bharat sir, actually, we have seen all of INR 20 crore incremental OpEx recently. So just wanted to get a picture in mind, whether there has been some OpEx optimization measures which we have taken that would cause something like this even? I think there's an impression that your volumes have been really scratching after... What What do you say? So I'm asking, as of our R&D expenses, our other expenses has actually gone down by INR 20 crore. sequentially. So is it because of some cost control measures or there is something else which is leading to this? And how should we see it going forward? No, I don't think so. I think, it's, I mean, everything is normal in business. I mean, I don't think there is any particular reason for any impact. Maybe in, pharma, second quarter, as I can confirm, but in pharma second quarter, already had some higher promotion than third quarter, probably that's the only, that is the only differentiator. Mr. Baheti, the other thing is on the, there's little bit of saving on the RM and the sourcing side. I think that may be reflected. No, that again comes with the other expense. Oh, okay. Yeah. Yeah. Yeah, yeah. Sure. I will get back to this. Thank you. Thank you. The next question is from the line of Vishesh, who is an individual investor. Please go ahead. Hello? Yes, sir. Please proceed. Yeah. Hi, sir. So thanks for the opportunity, and first of all, congratulations for the good set of numbers, third quarter. I've got two questions here. First one, could you please quantify the overall revenue from your new facilities, like, in the whole for, let's say, third quarter of financial year 2024? No, we don't give product line detail or facility line detail. That's very difficult to provide. Okay, okay. No problem. And, okay. And sir, when can we, like, see a good operational control in regarding the new facilities? I don't think the question is clear to me. What are you saying? Like, operating leverage. Yeah. The one... So you're saying, when do we expect to see operating leverage in the new facilities? Yes, yes. Like, when, when can we see... So, you know, so I think someone earlier asked a question about capacity utilization in the new facilities. Now, the new, new facilities are all operational. The capacity utilization right now is pretty low. And what I meant by operating leverage is as we go along, right, and, as you have more product coming out, you have more opportunities, and there are lot ways to operating leverage. I mean, the cost will come down, the unused capacity will come down. That is operating leverage, and which would ultimately reflect in the margins of the company as well. Thank you. Thank you. Thank you. Thank you. The next question is from the line of Sir Rishabh Dugar from Fino Wealth Financial. Please go ahead. Hello. Congratulations, sir. I have just one question. What's your view on the US business? Will it be product based or number based going further? Sorry, I couldn't... I was just, can you just repeat that question? I couldn't hear. Am I audible? Yeah. No, you're audible. I had an issue on my end. Can you just repeat it, please? Hello? Yes, Rishabh, your line is audible. Can you please repeat your question? My question is, will the US business, will it be naturally driven by better product mix or what will it be? I think, US business, what will happen is as we get the number, as we have a broader portfolio, as we have more products getting into the market, that'll help. One of the reasons why we made these investments into new capabilities, such as injectables, peptides, oncology, is the incremental competition there is much lesser on the OT side. And also on this, as we go towards more complex products, we will hopefully see lesser price erosion and bigger product opportunities. That's the way we approach the US market. Right. Yeah. Understood. That's all. Thank you.