Good day, and welcome to the Aurobindo Pharma Q1 FY 2022 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. If you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Arvind Bothra, Investor Relations. Thank you, and over to you, sir. Thank you. Good morning and a warm welcome to our first quarter FY 2022 earnings call. I am Arvind Bothra from the investor relations team, Aurobindo Pharma Limited. We hope you have received the Q1 FY 2022 financials and the press release that we sent out yesterday. The same is also available on our website. With me, we have our senior management team represented by Mr. P.V. Ram Prasad Reddy, Chairman, Aurobindo Pharma USA, Mr. N. Govindarajan, Managing Director, Aurobindo Pharma Limited, Mr. Sanjeev Dani, CEO and Head, Formulations, Mr. Santhanam Subramanian, CFO, and Mr. Swami Iyer, CFO, Aurobindo Pharma USA. We will begin the call with summary highlights from the management followed by an interactive Q&A session. Please note that some of the matters we discuss today are forward-looking, including and without limitation statements relating to the implementation of strategic actions and other affirmations on our future business development, and commercial performance. While these forward-looking statements exemplify our judgment and future expectations concerning the development of our business, a number of risks, uncertainties, and other factors may cause actual development and results to differ from our expectations. Aurobindo Pharma undertakes no obligation to publicly revise any forward-looking statements to reflect future events or circumstances. With that, I will hand over the call to Mr. Santhanam Subramanian for the Q1 FY 2022 highlights. Over to you, Subbu. Thank you, Arvind. Good morning, everyone. I hope that all of you and your families are safe. While the fight against COVID-19 is ongoing, at Aurobindo, we are committed to ensure the safety of our employees and to ensure business continuity is maintained. However, Q1 FY 2022 witnessed an increase in overall cases, which resulted in partial lockdown in various parts of the globe and affected the path to normalization. The quarter performance. Ladies and gentlemen, please be connected the line of the management got disconnected. Ladies and gentlemen, thank you for patiently holding the line. The line of the management is reconnected. Thank you, and over to you, sir. Can I start? Mr. Subramanian, please go ahead. Yes. We will now discuss the results for the first quarter of the fiscal year FY 2022 declared by the company. Please note that we'll be discussing ex-net profit numbers throughout the call. For Q1, the company registered a revenue of INR 5,702 crore, an increase of 2.9% over last year. The EBITDA before foreign and other income improved by 5.6% year-on-year to INR 1,209 crore. EBITDA margin for the quarter was 21.2% and improvement of 50 basis points over the corresponding previous period. The margins improved on a year-on-year basis despite lack of export incentive benefit as well as continued ramp-up in R&D spend during this quarter, this accounting to almost INR 180 crore. The net profit increased by 8.9% year-on-year to INR 770 crore. In terms of the business breakdown, formulation business in Q1 FY 2022 witnessed a growth of 2.7% year-on-year to INR 4,890 crore and contributed around 85.8% of the total revenue. API business contributed around 14.2% and clocked a revenue of INR 812 crore for the year. For the quarter, the revenue from the U.S. market declined by 1.5% year-on-year to INR 2,681 crore. On a constant currency basis, U.S. revenue marginally increased by 1% year-on-year to $364 million. We have received the final approval for four ANDAs and launched five products in the quarter under revenue. We have filed eight ANDAs including two injectables during the quarter. Revenue for Aurobindo Pharma USA, the company making the oral products in U.S.A., decreased by 9% year-on-year for the quarter in U.S. terms. Revenue for Eugia, the injectable business, increased by 22% year-on-year to $62 million for the quarter and we hope to see continued growth as hospital footfalls improve. We have filed a total of 150 injectable ANDAs as on 30th June 2021, out of which 98, which have received the final approval, and the balance 52 are under review. The company on 30th June 2021 has filed 664 ANDAs on a cumulative basis, out of which 451 have the final approval and 39 having tentative approvals, including eight ANDAs, which are tentatively approved under the Paragraph IV and the balance 104 ANDAs under review. For the quarter, Europe Formulations revenue clocked at INR 1,583 crore in an increase of 19.7% year-on-year growth. For the quarter, gross margin witnessed a growth of 13.7% to INR 329 crore. The quarter performance was led by strong growth in Brazil and South African business. For the quarter, EBIT witnessed INR 296 crore, degrowth of 30.3% year-on-year on a high base of last year. R&D expenditures were INR 358 crore during the quarter, which is 6.3% of the revenue. Net organic capex during the quarter is around INR 64 million. The average forex rate was INR 73.67 in June 2021 and INR 72.87 in March 2021. Net cash including investments at the end of June 2021 was $1.5 million. The average finance cost is INR 1.19 million due to having multiple currency loans. This is all from our end, and we are happy to take your questions now. Thank you. Thank you very much. We will now begin the question- and- answer session. The first question is from the line of Anubhav Agarwal from Credit Suisse. Please go ahead. Yeah. Hi. Good morning to all. First question, you mentioned in the presentation you bought certain ANDAs and OTC brands. How many you bought and which areas they are in? Can you give more details on this? Hello, am I audible? Yeah. Can you repeat the question, Anubhav? Yeah. I was asking that you mentioned about acquiring certain ANDAs and the brands. Can you talk about how many ANDAs and brands you bought and what's their revenue contribution and some more details of the areas they are present in? Sure. SwamI? Yeah, sure. Thank you, Anubhav. During this quarter, we had purchased about nine currently marketed OTC brands and six ANDAs. As we had articulated in the past on capital allocation, we look at opportunities that are cost beneficial and then or to market or for product portfolio expansion. Hello? Continue. Are you able to hear me? Continue. Yeah. Yeah. Typically, we evaluate medium-sized opportunities that can complement our portfolio. These nine currently marketed OTC brands are available for revenue, and we expect about $ 30 million-$35 million in the first 12 months, and we expect to grow these brands. That's about the OTC brands. Was there any contribution from them in this quarter, or they came only in the end of the quarter? This we got in the middle of the quarter, literally. We have to use the transition period. We did not have much contribution in the quarter. Going forward, we expect some contribution on this. What about the ANDAs, six ANDAs? Which areas they are in, and can you give some more details about this? There are actually six ANDAs, and these some are ready for marketing and then they're currently marketed, and one more ANDA will be launching in due course. These ANDAs we anticipate close around $30 million annually on these ANDAs. Okay. Thank you. The second question was on the Cronus acquisition. Can you talk about how many products can be commercialized in next one year and the second year from the already six approved products and the 22 which they have filed? Yeah. Anubhav, I'll take this opportunity to talk about the Cronus and give you a total overview for the benefit to the investors and analysts. Right. See, the Cronus company was founded in 2015-2016. It has been going on. Another company by name Cronus LLC also there in the U.S. We have subsidized the U.S. company as on 1st of July 2021 to make it 100% subsidiary. The numbers reflected in the press release are reflecting only the statutory numbers. However, if you take the pro forma financials of both the companies, last year the combined entity on a pro forma basis achieved more than $13 million turnover. This year, already in the first half of the year, it has achieved more than $6.5 million, and they are pretty confident this will exceed the last year number during this year. If you really get into the overview of that, this company is located in Hyderabad on a 10-acre land, which is a FOCUS unit, and the plant is constructed on 2.25 lakh sq ft. They are working on multiple business segments. One is the orals and second, injectables. Third is peptide for injectables and CMOs, et cetera. Totally, they have already Total products as on date is around 67 products. Out of that, if you say, in pipeline, if you say injectables, it is around 40, and other non-injectables is around balance 27. They completed the exhibit batches pertaining to more than 32 products, and filing has been completed for 22 products, and they got approved and that's to the tune of six numbers. The unit is also having a very good R&D facility, et cetera. To some extent, Aurobindo also supplies some APIs and et cetera. Going forward, we see lot of synergies, et cetera, in this company. The company has been already invested to the tune of more than $45 million by way of plant and machinery purchases, intangibles under development, et cetera. I'm sorry, more than around $50 million already they have infused it. We are doing only a primary infusion into the company, thereby increasing our stake to 51%. We will be having the management control. We see a lot of growth coming down the line three, four years. Even though we are not giving guidance or et cetera, personally, not Aurobindo's view, it can be another company like Natco down the line four, five years. Any more question? Yeah, just one clarity. After your infusion, the $50 million is now what number after the infusion? No, that $50 million, the cash is getting into the system, so it becomes more than $100 million. No? Okay. Yeah. Can you also talk about how many products? Out of the six products, when do we see them being launched in the market? Yeah. This product, six products, which are all mostly CMOs, and they have been working with multiple guys, and the U.S. inspection should have taken place as on March 2020. Because of the COVID, it got deferred, and they are expecting the inspection to take place somewhere by end of this year or early next year. At that time, the products which have been filed, as on date is around 22, which will be taken up. The management is pretty confident going forward, things will look very good. Thank you, sir. Thank you. The next question is from the line of Damayanti Kerai from HSBC Securities and Capital Markets. Go ahead. Hi. Good morning. I hope I'm audible. Yeah. Okay. Sir, my question is again on Cronus. What is the key rationale that we have looked into animal health business? We use to understand we are very well-placed in terms of growth drivers on the pharma side, where we are working on multiple future drivers. What has really prompted to look you at the animal health business? What kind of business attractiveness or long-term, I'll say, positive future have seen for the business? If you really look at the animal health market, it is more than $10 billion. The products, which will be 67 products, will amount to addressable market will be around $2 billion. As Govind has been mentioning in the past, we have different business segments run by different senior people, and they will be growing the company in their own way. It is not that the entire thing is looked at from the top alone. This helps to increase our revenue share in U.S. market going forward. There are also mostly in the injectables, 40 products in injectables out of the 67, which also will help us to have a firm standing going forward in the animal health portfolio. Okay. Sir, I just missed, pro forma revenues, you mentioned how much? The pro forma financial, the turnover for last year is more than $12.5 million. This year management is pretty confident they will exceed it. In the first half-year, they've already achieved $6.3 million or $6.4 million. Okay. This is only with the six products, outsourcing products. The real manufacturing, the inspection has to take place and all the 67 minus six, 61 products have to come into play, which is not there as on date. Down the line by 2023, I would say, April 2023 onwards, anytime, the entire manufacturing will start contributing. Okay. My second question is on what is update on the COVID vaccine front. Last call you mentioned we'll be starting some stock filing manufacturing in July. Just if you can update on the COVID vaccine front, please. Just to recap what we had mentioned in the last call, we had said that the clinical trial was yet to start, and the clinical trial is being initiated by Vaxxinity, which used to be called as COVAXX. We mentioned that we see an opportunity in terms of doing contract manufacturing based on their Taiwan approval, and they've already placed orders for 30 million doses. I think for that they would pick up based on the approval of Taiwan, which is expected in the next few weeks to a month or so. Based on that contract manufacturing will pick up. Sir, what is the progress on clinical trial front? I'm sorry, what is that? On the clinical studies which are ongoing for the vaccine, what is the current status? Clinical trial for PCV is only phase III has started. As far as the COVID COVAXX or rather Vaxxinity vaccine is concerned, I think they are yet to start their phase II, phase III. That I think they've already going ahead, have appointed certain CROs as well. They should initiate it in the next few weeks. Okay, sir. I'll get back in the queue. Thank you. Thank you. The next question is on the line of Ritesh Rathod from Nippon India Mutual Fund. Please go ahead. Yeah. Hi, everyone. Can you help us understand the history of Cronus Pharma, in terms of how they have grown? Have they done any acquisition? Who are the owners of this Cronus Pharma, and is it a related party transaction? This was started in 2015. They have been putting a plant, that plant has been constructed near Shamshabad Airport, which is a SEZ zone. We have personally seen the plant also. It's a very good plant, actually. It's a SEZ zone. They were about to get the U.S. inspection last year, March 20. Somehow it has not happened due to COVID. This year it is happening. The U.S. business has been done as we are selling a distribution arm, which have been made as a subsidiary company. This is the thing. We have also gone through the prescribed SEBI guidelines, et cetera. This is not a related party. However, what we have done is we have taken the precaution to ensure the entire transaction is at arm's length. We have consulted the legal fraternity, everybody. Are the 66 filings which they have under development, were they organically developed, or there were some acquisitions they had done in past, done through? Out of 67, I guess so, six have been bought. They have been using the outsourcing to do that. The real 61 products which has been organically developed. They are waiting for the inspection. I'm repeating. They're waiting for the inspection. Out of that, 40 is injectables. For the $107 million OTC brands and the ANDAs which you have acquired as well as this one, would you need a shareholder approval? Yeah. We have consulted because these are all different transactions, and these are all only ANDAs. It is within the limit which has been prescribed, and our secretary as well as we have consulted the expert, and it is not required any shareholder approval. Even for this Cronus Pharma, you won't require shareholder approval? It is not required. Okay. Thank you. That's from my side. Thank you. The next question is from the line of Shyam Srinivasan from Goldman Sachs. Please go ahead. Shyam, you're there? I don't think he is there. Hello, can you hear me? Yeah. Hello, can you hear me? Yeah, go ahead, Shyam. Yeah. I was asking about the global injectable sales. If I look at it, what was the number for the quarter? If you can also share, as given we have moved things, we are trying to subsidize and make a Eugia kind of this one, structure. Can you help us understand where the overall revenues are? I know you have given a guidance in the past, but just to understand on the profitability front as well, can you help us understand that, please? Yeah. The global injectable number is around $ 102 million. We'll ensure that next quarter onwards we are ensuring it is there. Second is, yes, we have taken the approvals and we have informed the stock exchanges and the investor community that we are going to subsidize that, and we have already taken necessary action. We have taken the one set of approvals, regulatory approvals, and the second set of regulatory approvals will happen. Hopefully, everything goes well. By 31st August, we will try to complete it. Subbu, anything on the profitability? Anything that you can share? Anything? I don't understand. Please, can you? What is the profit margins for the Global Injectables? Is there something that you are sharing at this point of time? How should we look at that business? See, we are not giving the injectable margin number, and however, we are not inferior to any of the competition or anybody. Right. We are not giving any specific numbers. Shyam, to answer you, the long term, whatever we have projected last quarter, that growth story is still intact. Okay. Govind, that was like a $ 650 million, $700 million target for Global Injectables. Yes, sir. Correct? Yes, sir. That story is still intact, and that is what is our goal and that's what we are working towards. These quarter-to-quarter differences may not matter. I think we are still confident about achieving that goal, Shyam. Got it. Second question is on the U.S. oral solids. If you look at the U.S. performance as well, QOQ decline. We are comparing like-for-like with 4Q. I'm not doing it with 1Q. How are you seeing the scene there in terms of pricing environment, new launch momentum, if you can help us understand? Swami? Okay, yeah. I can take this question. Yeah, thanks, Shyam. We had a slightly tepid growth during the Q1 of current year. We saw some price erosion during the quarter, and primarily due to buildup of inventory across supply chain, across suppliers due to decreased demand. Price erosion was in the, I would say, upper single digits percentage-wise, which is higher than normal. We cannot estimate the duration at this point precisely, but we believe the negative impact will be offset with higher volumes and new launches across the years. As you may know, we are today the largest supplier by volume, and we plan to keep increasing this as we have a large portfolio. Yes, Swami, just any launches you would like to call out for the remainder of the year? Or are we sticking to the 30+ launches, 30, 40+ launches for the full year? Yes. We would be 30, 40 launches. Yeah, 30. I would say about 30+ launches in the year. Got it. Thank you and all the best. Thank you. Thank you. you. The next question is from the line of Kunal Randeria from Edelweiss. Please go ahead. Good morning. Thanks for the opportunity. Just one clarification. Was the management of Cronus, or let's say the Cronus founder, associated with Aurobindo Pharma in the past? Okay. Can you repeat the question so that we are clear about what we are answering? Yeah. Was the founder of Cronus Pharma associated with Aurobindo Pharma, maybe a director in one of the subsidiaries or? We have dealt with them in the past because in the past there are transactions we have done, and even today we continue to do transactions with them on other entities. Does that answer your query? It does. But as of now, he's not a part of Aurobindo Pharma, right? He has never been part of Aurobindo Pharma at all. Okay, fair enough. Yeah, that answers my question. Sorry? Hello? Ladies and gentlemen, please give us a moment. The line with the management got disconnected. Ladies and gentlemen, we are really sorry for the incident which happened. We have the management which is connected. Thank you, and over to you. We sincerely apologize for this call here. I think the quality of the call was really pathetic. We are really sorry about that. Can you connect the gentleman who was asking the question, madam? The person is in the line, sir. Sir, did you get your answer? Did you get your answer? Did you get your answer? Yes. I did that. Thank you. Just one more question. You're developing five biosimilars. Can you share some timelines? Because I think you have revealed that you may be filing sometime this year. What are the timelines, please? Subbu, you want to take or you want me to take? Okay. Let me answer that. As far as the first two products are concerned, we have clearly mentioned that those two products with an extended phase I would get filed during this financial year. Seven months is a typical timeline that you would expect an approval because these are different timelines as far as the first two products as far as Europe is concerned. There is one more product which will get ready, which will get filed by next financial year. You can expect every year one product getting added to the portfolio. One to two products, depending on the length of the trial, it would get added. As far as Europe is concerned, whenever the filing happens, in 210 days, you can expect approval. As far as the U.S. is concerned, depending on is it the first set of products or already reviewed product, the timeline would be different. You can take it as approximately 18 months as the timeline. 12-18 months is the timeline for approval in the U.S. depending on the complexity of the product. Does it answer your query, sir? Yes, sir. Just one more clarification on this. The first U.S. approval, U.S. filing would be after the European filing, correct? No. Before March, we are filing one product. No, two products we are filing before March. In Europe and U.K., first product we are filing next month. This is what. Subsequent year, 2022, 2023, we are expecting to file in U.S. two products. That is the thing. Sure. Sir, do you expect the R&D to go up now? No. Maybe Subbu, can you answer? Yeah. We are already at 6%. Probably with the turnover going up, the denominator will go up. Probably we may be 5%-6%, depending upon how we see it. It depends upon many factors. While we are very clear about we are going to do the clinical trials, et cetera, how to optimize it, we are working on that. Perfect, sir. Thank you in all cases. Thank you. The next question is from the line of Tushar Manudhane from Motilal Oswal. Please go ahead. Yeah, thanks for the opportunity. Sir, just would like to understand the progress on the PLI scheme, please. Okay. Go ahead. We have already sought some clarification from the government. Based on the outcome of that, I think we will decide the way forward. We are all geared up for moving forward, but we want a certain clarification, which we already sought from the government and the project agency. The financial outlay would start from, let's say, in FY 2022 or FY 2023 onwards? The financial outlay, even it will start this financial year itself, depending on when we receive the clarification. If we receive the clarification, let's say, and if it is meeting our requirements, the investments can start in the current financial year itself. Sorry to drag on this, but can you just elaborate on this clarification? Like any major hurdle on starting this project? The clarification is in terms of including certain products as part of that. If you take an example of penicillin G, we also wanted clarification on whether 6-APA should be part of that or not, because when we produce 6-APA, we need not necessarily isolate Pen- G. Also 7-ACA along with that, I think we wanted 7-ACA, which is also like a migration which is happening as a starting material in cephalosporins. Got you, sir. Thank you. That helps. Thank you. The next question is from the line of Prakash from Axis Capital. Please go ahead. Yeah. Good morning. Thank you for the opportunity. First question is on the U.S. FDA update. We hear that inspections for one of your facilities have started. Is there an update, please? Okay. Unit one was audited by U.S. FDA for nine days, and the audit got concluded yesterday. There were 483 issues with seven procedural observations, and we would be responding as per the prescribed timeline and go ahead and work with the agency towards moving forward. Just to clarify, these are the foreign FDA inspectors or from the local agency? This is a foreigner based out of the Delhi office. Okay, got it. Thank you for this. Secondly, just picking up thoughts on the U.S. pricing pressure that we are seeing. Q1 and Q2, there has been some pressure. What is this pressure? What we are seeing on the market? What is changing in the market? We've been growing single digit. We have a very strong portfolio, pipeline launches are happening. What are you reading on the market? What has really changed, or do you think this is more temporary? Okay. Swami, I'll take this one. Yeah. I'll take this one. Prakash, basically, as Swami had explained earlier, our strong belief is that because of the pandemic, people have stocked more material than the need or the consumption. Obviously we see this as a time period or a phase where everybody has to liquidate the stock which they have built more than whatever is actually needed. There are certain things which are happening currently may not be sustainable, I think. What we are talking about is now the stock is not only with the seller, it is also with the distributor. Once these are offloaded, we expect the normalcy to settle in. We always have maintained that a 5% erosion is something we also budget for. This time it has been more as already explained by Swami. This is a phase, in our opinion, should pass. We are not giving a specific timeline because we need to know how much stock is being held by everyone, how much time would it take to get liquidated. That is the reason we are not giving a specific timeline. Since we have enough engines for the future after this phase is over, we are still confident about the growth. This year we still maintain we'll be able to see growth on the last year's base. It depends on the stock liquidation, as I had explained, Prakash, because we don't want to give a general answer, yes, we are confident, because in case if the liquidation takes some more time, so that some more time will happen. As you are aware of it, that I think we still have a significant portion of our products, I think, which are competitive. As you know, the 60%, 65% of our portfolio is within the top one, two, or maximum three in terms of the one, two ranking. Obviously, I think our story is intact. We are confident. As Swami had explained, I think the products are awaiting approvals and would be launched and we are confident about the future. In this phase, we are not able to clearly say that how long this phase is sustained, but we are absolutely confident about the growth as we progress beyond this phase. Understood. One more on the rationale or the thought process behind. We already have a very, very strong pipeline of 174 products under different dosage forms. We have gone and bought this $100 million asset, which has some OTC and NDA. On an overall scheme of things, we are doing depot, we are doing complex injectables. We are working on biosimilars, vaccines. These are much larger assets. I'm just trying to understand the direction of buying such smaller assets, A, and B, also the veterinary piece coming in. What are we signaling in terms of filling up the gaps? Do we see more such smaller assets going forward, or we focus on the larger assets which we are developing organically? I think we are not talking about one against the other, Prakash. We are not talking that. Number one, as far as the ANDAs are concerned, they are absolutely complementary. See, today in the generic industry, let us be clear about one particular fact. At the time of filing, every product looks like a great product. That's why every company for every product, it is filed. At the time of launch, you cannot predict, I think, how many players would be there, how much erosion would happen. If you're getting an opportunity for a certain portfolio of products which is going to complement your existing portfolio, you should go for it. That is the strategy which we have adapted in terms of getting those portfolio. Tomorrow, I think these products also have enough opportunity for their own growth. That was evaluated based on that. We went ahead with that. As far as the veterinary business is concerned, the one part is you have to remember most of these APIs, I think, are also coming from our facility. We clearly see this is a good business to be in. That's why we are going ahead with that. Doesn't mean that when we get into, let's say, newer portfolio or existing portfolio will dilute or we are focusing on veterinary doesn't mean that we will. Hello? Ladies and gentlemen, please stay connected. Line of the management is disconnected. Ladies and gentlemen, thank you for patiently holding the line. We sincerely apologize for the disconnection which has happened. We have the management line reconnected back. Thank you, and over to you. Mr. Prakash, please go ahead with the question. I had a question regarding the rationale of buying these smaller assets, and do we see more of such assets in the future to fill up the gaps, if any? I don't think that we appoint a banker to go and chase anything, Prakash. As far as these smaller assets are concerned, the smaller opportunities are concerned. As we had articulated in the past about the capital allocation, we are very clear that we are not looking for any large ticket acquisition. If there is an opportunistic, let's say, asset at ANDA is available and which can actually complement our portfolio, then definitely we will look at that. Even in the future, if anything comes up, we'll look at that either in Europe or U.S., I think we'll definitely look at it. You also agree with the fact that you'll not get such opportunities very many because as we have a larger portfolio, only that makes sense only we'll be looking at it, not that we'll be chasing it. Okay. Last one for Subbu, sir, on the gross margin side. One is U.S. pricing pressure. The second I picked up is the ARV sales are down. Why gross margins have dropped? Is it function of raw material and lower sales, or there is more to it, and what is the outlook there? No, it is basically the change in the product mix now because in U.S., typically, the average margin will be more than the company average margin. If there is a drop in the sales, obviously the gross margin will get reduced. Is there an outlook to this? Having said that, we have worked and then ensured that overall as a company, the gross margin and the EBITDA margin is not affected. Yeah. I could see the significant cost controls, but the question is on the gross margin outlook, sir. How do we see this going forward given the U.S. pricing pressure is here to stay? You're right. At this stage, we need to see as explained, we need to see on the price erosion and whatever is the impact. Probably our endeavor will always to ensure that we move towards 60. We always have the standard at 58 and move towards 60, that's all. Because of the temporary nature of this price erosion because of the COVID related and other things, we had a small setback, let's see whether it is a one-off or we will come to know of it maybe down the line in 2 quarters. Okay, perfect. Great. Thank you. All the best. I'll join back with you. Thank you. Thank you. The next question is from the line of Chirag Dagli from DSP Mutual Fund. Please go ahead. Yes, sir. Thank you for the opportunity. Hello, am I audible? Absolutely. Yeah. Sir, are you seeing more players in your base products, the older generic products? If you can just broadly split pricing erosion between what you see on the base and some of the larger products which are slightly less competitive. Is there a marked difference in the high single-digit erosion between these two categories? Okay. Swami, I'll answer this. As far as the price erosion is concerned, Chirag, it's not a question of new player entering. That is not the criteria. Possible for a few products, the major criteria is due to the stocking of all the players, because when there is an opportunity, everybody thinks that this requirement is sustainable, and they always would like to have more material than what is needed. The offloading of such stock is what we are seeing as a major reason. Second is, as you are aware of the fact that for us, any product, we don't depend on a very high level. I think you know that our top 25 products is approximately around 30%-32% in terms of our exports. To that extent, any single product our dependence never has been high, Chirag, you are aware of that. On Cronus, if I heard this correctly, there is a primary infusion that your capital is going to go into the company. Correct? It's not that you're buying out. Point is, what is the use of that capital for Cronus? What are they going to do with that capital? Also is that debt on the books of Cronus? Yes, sir. A very good new question. I think this is the most relevant question. The money will be infused as a primary, and the second will be with us only. This money will be used to reduce the existing debt, which is a high-cost debt, which will be reduced. Second, as we explained, we have to file another 45 products for which we need to pay the filing fees, and we need to generate the cost on account of exhibit batches, everything. Sir, this will be totally used for the business purposes in achieving the 67 ANDA approvals. Plus they are not going to stop it here, and they will be trying to look at more R&D related work. Subbu, veterinary ANDA, the filing, there is no ANDA fee. In the end, approval we require each ANDA. Yeah. Okay. Sorry, sir, what is this point, sir? I am not clear. Veterinary is unlike healthcare one and the general one, we pay the money initially with the filing of ANDA. In veterinary, at the time of approval, we have to pay $500,000 each ANDA. We require some money there for this product. That's what Subbu is telling. These six products, also the approval fees have not been paid? Which one? You said that there are six approvals that have already come through for this product or for this company. Those filing fees. Out of that, this company has developed three products, is the labeling products. Labeling means they have taken somebody's veterinary label, healthcare product, they are selling these three products. These three products, they have developed their own, but in other units. They filed, they got approved, and they have to yet to launch those. Out of the six, two products, main two products they have to launch in next month onward. Understood, sir. From the third-party units. Understood. Subbu, can you give the exact date as on date on the Cronus books? I think must be around INR 150 crore or INR 165 crore. INR 165 crore? Yeah. Because they put the plans, the capital employed as on date, as on thirtieth June, the capital employed is $50 million. Right. Of that INR 165 crore is the debt and the balance will be obviously equity. Yes. Okay, sir. Thank you so much. Thank you. Thank you. The next question is from the line of Harit Ahamed from Spark Capital Advisors. Please go ahead. Hi. Good morning. Thanks for the opportunity. You mentioned that there was a valuation that was done by PwC on Cronus Pharma. Will you be able to share that with investors? No. See, first of all, we need to take the consent of PwC. Second, whether we need to share it, et cetera, we have to go through the process, understand what are all the issues, et cetera. That is the thing. I'm asking because there are several questions from, as you've noted on the call as well, regarding the valuation of Cronus. It will be useful if you can share this with investors. Any investor, if they come to office, they can read it there. I don't know, Subbu, whether sharing, going this to tell. Even for also PwC consent we need to take it. The simple logic which I like to present it is the six molecules which have been outsourced is already generating a revenue more than $13 million, even though the management is pretty confident and they are very excited about achieving more than $20 million. We want to be honorable as a company. We want to be very cautious in telling the guidance or anything. Their management team is pretty excited in achieving more than $100 million in three years time. Okay. That's all from my side. Thank you. Thank you. Ladies and gentlemen, this was the last question for today. We sincerely apologize for the bad connection quality. Hello? Yes, sir. Are the participants there? I'd like to conclude this. Sure, sir. Please go ahead. The participants are connected. Good morning, everyone, again. I sincerely apologize for the pathetic quality of call today, and wish we could do something about it. If any of your questions remained unanswered, please feel free to reach out to me, and I'll try my best to address them at the earliest. I thank you for your patience and kindness today. Thanks a lot. Thank you. On behalf of Aurobindo Pharma Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.