Ladies and gentlemen, good day and welcome to Dr. Reddy's Q1 FY 2023 earnings conference call. As a reminder, all participant lines will be in 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 and zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Amit Agarwal. Thank you, and over to you, sir. A very good morning and good evening to all of you, and thank you for joining us today for the Dr. Reddy's earnings conference call for the quarter ended June 30th, 2022. Earlier during the day, we have released our results and the same are also posted on our website. This call is being recorded and the playback and transcript will be made available on our website soon. All the discussions and analysis of this call will be based on IFRS financial statements. To discuss the business performance and outlook, we have the leadership team of Dr. Reddy's comprising Mr. Erez Israeli, our CEO, Mr. Parag Agarwal, our CFO, and the investor relations team. Please note that today's call is a copyrighted material of Dr. Reddy's and cannot be reused or distributed in full for media outlets without the company's express written consent. Before I proceed with the call, I would like to remind everyone that the safe harbor contained in today's press release also pertains to this conference call. Now I hand over the call to Mr. Parag Agarwal. Over to you, sir. Thank you, Amit, and greetings to everyone. I will take you through our financial performance for the quarter. For this section, all the amounts are translated into U.S. dollar at a convenient translation rate of INR 77.02, which is the rate as of June 30th, 2022. In this quarter, we have strong growth in our profits supported by the settlement income and brand divestment. While we were impacted by additional competition in key products in U.S., cost inflationary pressure, normalization of stock holding in Russia, and slowdown in the pharma market growth in India. Despite these challenges and adjusted for few one-offs, we have done reasonably well and are confident of further improving our performance from here on. Consolidated revenue for the quarter stood at INR 5,215 crore, that is $660 million, and grew by 6% year-over-year basis and declined by 4% on a sequential quarter basis. Sales growth has been impacted due to higher base effect as Q1 FY 2022 included sales from COVID products and Q4 FY 2022 had higher sales in Russia driven by stocking up, which is normalized in the current quarter. This impact was partially offset with the brand divestment income in the current quarter and the new product launches across our businesses, while the price erosion has been in line with the trend witnessed in the last few quarters. Consolidated gross profit margin for this quarter has been at 59.9%, a decline of 230 basis points over previous year and 300 basis points sequentially. Gross margin for the Global Generics and PSAI businesses were at 65% and 15.7% respectively for this quarter. While the current quarter gross margin was supported by brand divestment income, it was impacted due to several one-offs, adjusted for which we are within the normal range. Let me explain these in a bit more detail. Firstly, our gross margins were impacted due to significant movement in the Forex rates during the quarter, which we believe should normalize going forward. Secondly, the gross margins were also impacted due to increase in the commodity prices and adverse leverage on manufacturing overhead due to lower sales pace. We expect this to normalize from next quarter with an increase in our sales. Thirdly, in this quarter, we have launched chronic brand Cidmus in India, which is currently procured externally and has a lower gross margin. We plan to transition this to in-house manufacturing after the expiry of patent, which should lead to an improvement in margin. With the above measures planned to be undertaking, normalization of the one-off and launch of few meaningful products, we believe that next quarter onwards our growth margins will improve and will be within the normal range. Our SG&A spend for the quarter is INR 1,549 crores, that is $196 million, an increase of 3% year-on-year and a decrease of 1% quarter-on-quarter. As a percentage to sales, our SG&A has been at 29.7%, which is lower by 90 basis points year-on-year. However, higher by 90 basis points sequentially. The R&D spend for the quarter is INR 433 crores, that is $55 million, and is at 8.2% of sales. We continue to drive productivity across our businesses while also making investments to strengthen pipeline and capability development in marketing, digitalization and people, including, for two, Horizon 2 businesses. The net finance income for the quarter is INR 235 crore, that is $30 million, supported by gain on account of strengthening of global rates during the quarter. While we had Forex-related benefit in finance income, it has been partially offset due to product impact and costs impacting our gross margin and SG&A. The EBITDA for the quarter is INR 1,779 crore, that is $225 million, and the EBITDA margin is 32.1%. Adjusted for the one-off of settlement income, brand divestment and those related to gross margin, we are within our normal range. Our profit before tax stood at INR 1,466 crore. That is $185 million, which is a growth of 97% year-on-year and a growth of 4.90% quarter-on-quarter. Effective tax rate for the quarter has been at 19.0%, primarily on account of recognition of previously unrecognized deferred tax assets on operating tax losses pertaining to our Swiss entity. We expect our normal ETR to be in the range of 24%-26%. Profit after tax for the quarter stood at INR 1,188 crores, that is $150 million. The quoted EPS for the quarter is INR 71.40. Operating working capital increased by INR 790 crores, which is $100 million, as of March 31st, 2022. The increase was primarily driven by an increase in receivables in North America, which should normalize during next quarter. Our capital investment during the quarter stood at INR 331 crore, which is $42 million. The free cash flow during this quarter was a net outflow of INR 232 crore, which is $29 million, after payment of INR 509 crore for the acquisition of Cidmus brand in India and the injectable portfolio from Eton Pharmaceuticals in the U.S. Consequently, we now have a net cash surplus of INR 1,275 crore, that is $161 million, as of June 30th, 2022. Foreign currency cash flow hedges in the form of derivatives for the U.S. dollar are approximately $366 million, largely hedged around the range of INR 77.6-INR 80.4 to the dollar. RUB 81.55 million at the rate of INR 0.9204 to the ruble. AUD 3.2 million at the rate of INR 55.8 to Australian dollar. ZAR 95 million at the rate of INR 4.82 to South African rand, maturing in the next twelve months. With this, I now request Erez Israeli to take you through the key business highlights. Thank you, Parag. Good morning and good evening to everyone. Our performance of the current quarter reflects the strength of our diversified business model. We have been able to mitigate several challenges faced during the quarter by monetizing various opportunities that led to a highest ever profit at an overall business level. Let me share with you some of the key highlights of the current quarter. One, settlement of impending litigation with Indivior and Aquestive for $72 million, which further helps strengthening our balance sheet. Completion of U.S. FDA inspection, our new sterile injectable manufacturing facility referred as FTO-11, leading to subsequent approval of the product from the site. This enable us to commission this plant and bring on stream additional capacities to grow our injectable business. Three, acquisition of cardiovascular brand, Cidmus, in India, and the injectable portfolio from Eton Pharma in the United States. Launch of abiraterone in China, which will be our second product through CDMO model. We are progressing well on product pipeline across small molecule generics, biosimilars and differentiated products/NCE. There has been good momentum in the initiative pertaining to Horizon-2 business and sustainability goals laid out during our recently concluded Investor Day. All of this will enable us to continue to deliver on our long-term growth aspirations. Now let me take you through the key business highlights for the current quarter. Please note that all references to the numbers in these sections are in respective local currencies. North America Generics business saw the sales of $230 million through the quarter, which is a decline of 2% year-over-year and 13% on a sequential basis. This was largely attributed to the incremental competition in couple of key products, this quarter. The Q-on-Q decline was also driven by high base for just-in-time launch, vasopressin injection, with normalized volumes and pricing adjustments due to the impending entry of competition on day- 181. Barring these products, the price erosion for the base business has been within the normal trends over the last few quarters. In this quarter, we launched seven new products, some of which would be ramped up in the coming quarters. We expect strong launch momentum to continue during the year. Similar to the last three years, we believe that we can continue to grow this business on the strength of new product launches while there will be volatility on a quarter-to-quarter basis due to the fundamental nature of generic business model. We are preparing for a volume-limited launch of Lenalidomide, the ANDA product in the United States during September 2022. A specific volume-limited amount of generic Lenalidomide that we are permitted to sell between September 2022 and January 31st, 2026, when we are licensed to sell unlimited quantities of generic Lenalidomide, are confidential. Our Europe business recorded sales of EUR 50 million this quarter with a year-on-year growth of 4%. However, sequential quarter decline of 4%. During the quarter, we launched nine products across various countries within Europe. We expect to continue to see a growth momentum in the rest of the financial year. Our emerging markets business recorded sales of INR 903 crore with a year-on-year decline of 10% and a sequential quarter decline of 25%. The decline was due to higher base effect, as we had COVID product sales in Q1 FY 2022 and brand divestment income in Q4 FY 2022. Further, the increase in stockpiling seen in Russia during last quarter due to the conflict is now normalized, however impacted the current quarter growth. Within the emerging market segment, the Russia business declined by 15% on year-on-year basis, and 60% on a quarter-over-quarter basis in constant currency due to the same reasons. During the quarter, we launched 25 new products across various countries of the emerging markets. We believe that on annual basis we will be able to grow this business in line with the past trends, adjusted for the one-offs of COVID sales and brand divestment income in previous year. Our India business recorded sales of INR 1,334 crore with a year-over-year growth of 26% and sequential growth of 38%. Adjusted for the brand divestment income in the current quarter and the COVID product sale during Q1 FY 2022, we have grown in India in double digits. During the quarter, we launched five new products in the Indian market. As per the IQVIA report of June 2022, our rank in value terms is at number 10. We continue to reshape our portfolio in India business with a focus of growing big brands, acquisition and partnerships for focused therapy areas while divesting non-core brands. Our PSAI business recorded sales of $91 million with a year-over-year decline of 10% and sequential decline of 8%. Adjusted for COVID product sales in Q1 FY 2022, the business has grown over the last year. We expect to see improvement in the sales during the balance of the year. We believe that there are several opportunities for growing our core business and building new avenue growth. We are committed to our long-term strategy and are progressing well towards productivity improvement and making right investment choices to deliver a long-term sustainable growth in line with our strategy unveiled on the Investor Day. With this, I would like to open the floor for questions and answers. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question will press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star 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. Anyone who wishes to ask a question may please press star and one. First question is on the line of Saion Mukherjee from Nomura. Please go ahead. Yeah, thanks. Parag, can you just quantify the impact of Forex across line items? There is an income in finance income, but you also mentioned there are certain impacts in COGS as well. If you can just quantify the net impact. Yeah. When the movement of ruble and some of the other currencies has led to an adverse impact in the gross margin, which would be roughly around 150 basis points in that range. In the finance income, there is the upside that has been recorded, and that's because of the accounting standard, the straight-line method. Overall, that's the kind of impact that our P&L had. Okay. The second one on Russia, particularly. I just missed the constant currency growth, if you can just indicate in Russia. Also, are you able to take any more hedges for RUB in Russia or the hedges that you had at the end of fourth quarter? You are just running with that at the moment. Since the hedge amounts are large for this year, you know, what is the kind of realization that you will have on currency? You know, anything you can guide going forward, how should we model for Russia in terms of the currency rate? Let me answer. The first question is on the constant currency sales impact. During the quarter, our Russian business declined by 14% year-on-year in constant currency. As we had signaled in the last quarter, it includes the normalization of the inventory stocking up that we saw at the start of the conflict. Now coming to the second point on Forex hedging, as you know, ruble has appreciated significantly from, you know, it used to be at a rate of around 0.9-1 to the rupee, and it is now ranging anywhere between 1.3-1.45. We believe this rate may not be sustainable in the long run, and currently the cost of hedging is extremely high. It's prohibitively high. We are currently not hedging. What we are trying to do as a business is to reduce our working capital cycle, and we have had some success in that. Instead of hedging our exposure, we are reducing the cash conversion cycle to minimize the impact on our business. Saion, just for me, if you take the denormalization of inventory, we will continue to grow in Russia. Okay. Just one more question, if I can ask. On India, you mentioned, adjusted for COVID, you had the healthy double-digit growth. If you adjust for the acquisition, can you share the growth number? Both. If you take both out, Saion, which is the brand divestments we take out and also the impact of COVID in the base, then we have grown at healthy double digits. If you look at the impact of acquisition, if you take that out, then our growth would be in single digit. Okay. Thank you. I'll come back to you. Yeah. Thank you. Next question is from the line of Anubhav Agarwal from Credit Suisse. Please go ahead. Question is on the U.S. market. Just when you talk about price erosion, so you talked about couple of products. Is there any element of shelf stock adjustment on Vasopressin also in this quarter in the U.S. sales? Again, can you repeat? When you call out, US makes around 13% quarter-on-quarter. One is the price erosion or volume loss on Suboxone and Vascepa, which you pointed out. On Vasopressin, just try to understand, is there element of shelf stock adjustment? The next example, which is $10 million, is just artificially pushing the December number, and when we start the next quarter, that number, we start at a higher base. That's what I wanted to clarify. Like I mentioned in my part, basically we see the normal adjustment that is related to day- 181, the situation. That's what it was with us in this quarter. Yes. On the SSA adjustment, there was no such major impact, Anubhav. When you say SSA, what does that mean? Shelf Stock Adjustment, what you mentioned. Okay. You're not saying that we happen to record highest with the Vasopressin in March quarter, and we were surprised with the price erosion. There is no element. This net $2-$20 million that we reported, let's say that becomes an opening base for second quarter for us. We are not guiding, but let's say, we do not see any surprises the way that you described it. Yeah. I think the important point, Anubhav, is that the price erosion that we have seen in this quarter in aggregate is in line with the trends that we have seen in the last few quarters, and we are not seeing any sign that it's worsening. That's the point I would like to make, yeah. Okay. Second is in the Russian market. Now, we've seen good amount of July as well. Has there been any element of us, you know, some market share gains, some visible signs of that, happening? Or is it business as usual? Can you give some qualitative, what's happening in the Russian market? Business as usual. In Russian market, Anubhav, we are seeing our operations are normal. Supply normal. The flow of money within Russia and from Russia into India is also normal. There are, you know, certain companies have shifted their spends from above the line, which is mass media or TV, to below the line, which is paid discounting and so on. There are some shifts in the way spends are made, which are happening in the market. Overall, we are finding that it is business as usual. As you know, in the area of medicines, we are very focused on making sure that patients get our medicines. Right now I'm happy to say that our operations are normal. Sorry. Just to add, just a clarity on this. What I meant was, for example, with Ruble to INR conversion is much easier than Ruble to Euro or USD. Is that benefiting you guys or in general the Indian companies who take a higher share in the Russian market? Have you seen any visible signs of that? In terms of visibility for the reported quarters, we did not have impact as such. We do not see at this moment anyone that's actually leaving Russia. All the pharmaceutical company to the best of our knowledge and our visibility are working in Russia, are operating in Russia. Likely in the long term it will change, but right now that's what we see. In terms of our business in Russia, it's favorable. People understand that we took the decision to continue to work in Russia. Indeed, it's comfortable for us to work, and it probably will help us in the future. As we speak, I think business as usual is the right way to give you the best transparency of what we see on the ground. Thank you, guys. Thank you. Next question is from the line of Damayanti Kerai from HSBC. Please go ahead. Hi. Thank you for the opportunity. My question is on U.S. business. You have a solid portfolio of injectable products in the U.S. Can you comment like how price erosion in this part of the portfolio stand against the erosion in the product portfolio, which mainly consists of Oral Solids. Also, in terms of some of the complex generic launches we have expecting in the future, what are your expectation on the pricing pattern? That's my first question. Thank you. The behavior on the injectable business in terms of erosion is similar. If the number of competitors are coming and facing a tenfold of customers, the price erosion is, I think, the same. Also the pattern of procurement is the same. We don't see that's a different behavior. The only, I think, big difference in terms of injectables in which you can work directly with the hospital as well as to work with the wholesalers. Of course this is allowing you more flexibility as it's related to share and market growth. More and more, in our case, we will see more injectable coming naturally as this is where the profit is, and this is where many people will go. I'm not sure I capture the second part of the question. If you can repeat, please. Yes. We are working on various complex generic products. Many of those are injectables, and these products might come over the next few years. I was asking in terms of pricing, how do you see these products stand in terms of pricing erosion once you come in market compared to the current portfolio, which we have? Some of the products that we will launch in the future may see limited competition. These are the products that some of them we indicated during our Investor Day. Some are in our pipeline, and we did not disclose. In general, like I said before, if there are multiple ANDAs approved for a product, we will see similar phenomena on price erosions also for the injectables, as well. I don't think that there will be significant difference in the behavior or the pattern of the procurement of the hospital versus the retailer in that respect. Sure. My last question is, can you comment on the trends which you are observing in the commodity prices or logistics costs, et cetera? Has there been any change compared to what we saw in the previous quarter? Any sign of moderation there? No, no signs of moderation, but no sign of worsening. We see that some of the commodity prices still impacting, especially those that have an inventory attached to it, as well as the shipping costs. Naturally, normally there is some time that it takes while the oil and some other commodity prices go down, and then of course, accordingly, normally in a certain period of time, from weeks to months, we start to see the impact also on our results. Of course, the real impact we can capture only when we sell this product, so likely that any change that will happen to this market, we will see only in our case six months from now also. Sure. Thank you for your answers. I'll get back in the queue. Thank you. The next question is from the line of Prakash Agarwal from Axis Capital. Please go ahead. Yeah, thanks. Good evening, and thanks for the opportunity. Question is on gross margins. I heard Mr. Parag saying about 1% on the, you know, rupee probably due to rupees. Correct me if I'm wrong, but you know, rupee-dollar also had a substantial movement. You also said that, you know, there was a high base last quarter on price erosion. That will also come down a bit. Aren't these not also, you know, factors which led to some decline in the gross margins? Overall, the Forex impact I told you was in aggregate. The U.S. dollar rupee impact isn't significant. The headline, the important headline is that if you take out the positives and the negatives, both which are non-recurring, then our gross margins are in the normal range. If you look at our last several quarters, our gross margins fluctuate between 51% to 53%, 54%. The point I'm making is that our reported gross margin is 49.9%, which has benefited from divestment of brands in India. There are a number of other one-offs which are non-recurring in nature. If you adjust these as well, in aggregate, our base gross margin is in the normal range. That's the headline that I want you to understand. I want to add to that, we do not see a change in the pattern of the gross margins, going forward as well. Like, we discussed in previous calls, the nature of the game in which is impacted from forex, from inventory, from price erosion, et cetera, we will always be in the range of somewhere between the numbers that Parag just mentioned, and this will continue also in the future. We can reiterate that this is the margins that we feel comfortable on the gross margin, and we reiterate also what we discussed in Investor Day about our commitment for the EBITDA margin as well. What we see is a consistent, if you wish, performance that is related to that. Probably now we see it more on the lower part of the range, but within the range. Trying to understand this, you know, when we met in Mumbai R&D Day, so we are talking about 25% EBITDA margin, and I understand this is still relevant, right? Are we on track for 2023, 2024 in that range, and then given that we had a blip in Q1? We are consistent to what we discussed in Mumbai. It was only a few weeks ago. What we see, I just want to make sure that it's the same. It's not necessarily a number that we'll achieve every quarter in the next many years. It will fluctuate. What we are saying is this is the number that on average we are going to get, which we feel comfortable with, which will allow us both to invest in the future and also to give the right return for the shareholders. This is indeed in the case of very successful launch of Lenalidomide, it could be higher than that, and after that it can be lower than that. This will continue, this kind of fluctuation. On average, we are consistent with what we discussed in Mumbai. I must also clarify that. Sorry, just to clarify, the aspiration of 25% that we have stated is not including or excluding any particular product. It is the margin in aggregate for our business. Okay. Understood. Just for, you know, clarification on Revlimid, when you say launch, it includes the two exclusivity as well as the other strength? It's correct. Sorry, sir? Yes, yes. Yes, that's right. Correct. Okay. Thank you. Thank Thank you and all the best. Thank you. Next question is from the line of Neha Manpuria from Bank of America. Please go ahead. Maybe just a few more questions. First, again, on the gross margin, if you look at, you know, just about the brand divestment in this quarter, you know, we are close to about the 47%, 47.5% margins. You know, from your comments it seemed like the effects were normalized, but, you know, there was also expectation that commodity prices wouldn't come off. You know, what essentially will lead to normalization of this? Would it be Revlimid launch, which will essentially help improve this margin? Or, I'm just trying to understand what will move us from the existing margin to our normalized mindset going forward. Yeah. Neha, there will be two, three drivers. One is I wouldn't single out Revlimid, first of all. I think I would say that the margins of the new product launches, including Revlimid, will be one significant driver of an uptake into gross margin. The second would be, as I pointed out, there are brands like Cidmus, where we are sourcing them externally and we are working towards internal sourcing. Cidmus is one example I have given you. As part of our productivity initiative, we constantly work on in-housing brands which will lead to an improvement in our cost base. That is going to be clearly a second lever, which is part of a larger productivity lever. There are a series of cost improvement programs that we are driving, looking for alternate vendors, improving plant yields. If you remember on the Investor Day, Sanjay presented our productivity status for each of the three businesses, which is O SD, API, and Sterile, and where we were a few years back, where we are now, and the further headroom that we have in productivity. That's going to be the second significant lever that gives us the confidence that we'll maintain our gross margin in the normal range. The other is that, the EM market, EM, India and Russia, because of the normalization that you say, they are going to have more visibility to growth as we discuss on this. Some of them were one-off and some normalizations, as well as the API is growing as well. Just to make sure, we are very confident, even without Revlimid, the gross margin will be there. That's very helpful, sir. A question on the PSAI business. You know, I understand the base effect, you know, in the previous year because of COVID. If you are to look at quarters also, there's been a moderation. Are we seeing, you know, some amount of customer destocking or, you know, customer inventory being high, which is limiting our ability to scale up that business? On the PSAI business, are we able to pass on these cost pressures that we are seeing in the PSAI business to our customers because margins there seem to have deteriorated too. After a few quarters in which we saw the decline of the API, which is one component of the PSAI. This quarter, we see that we are coming back to growth. It's a very single-digit growth, but we are growing, and we believe that this will continue, and we do see the pickup. This is primarily being driven by new products. New products and new customers in territories. The second piece that is growing for us is the activities that we are capturing under PSAI. We call it API Plus, in which we are selling dosage forms in countries in which we do not have direct access. We do see a pickup in this business very nicely, and it's actually very healthy growth. The third part, which is also growing although it's not yet contributing significantly, is the CDMO activity on the small molecules. The part that disappeared this quarter from the numbers is COVID, which was there last time, and this is why it looks like a decline. Overall, if you normalize it, COVID is a growing business now. On the margins? Sorry? The margins, the more the API will grow, accordingly, the margins will go up, because it's a very cost-based type of a business, and it very much depends on that, so the margins will go up. Got it. Thank you so much, sir. Your next question is on the line of Balaji Prasad from Barclays. Please go ahead. Hi, thank you for taking my question. This is Mikaela on for Balaji Prasad. Just wanted to circle back on generic Revlimid. I guess can you just provide any further color on expectations here, and also just any further color on key launches in the U.S. this year and next? Thank you. Like I mentioned, we are going to have a volume limited launch during September 2022. We will have that kind of permission to do that between September 2022 and January 31, 2026. After that, it will be unlimited. Naturally, we are ready for that and looking forward for that to happen. For the other launches, we will have 25 plus other launches in the United States. Overall, very consistent of what we discussed during the discussion of the Investor Day. We are confident that we will continue to grow in the United States on a regular basis with what we call from time to time in which we will have blips up and blips down as it's related to the nature of the product when we will have them. This quarter is a bit down. Next quarter, I believe it will be up. Overall, it's in the direction that we have discussed in the past. Thank you. Thank you. Next question is on the line of Sameer Baisiwala from Morgan Stanley. Please go ahead. Hi. Thank you so much, and good evening, everyone. I just wanted to make sure on your comment on EBITDA margins for Q1, you did say that if you exclude one-offs, then even EBITDA margin was in the range of what you normally do, which I presume is 23%, 24%? To clarify, our reported EBITDA margin, Sameer, is 34%. If you take out the impact of Suboxone settlement and the brand divestment, then it's around 20%. I spelled out a few non-recurring impacts, adverse impacts, for example, the COVID sales delays and the gross margin. If you adjust for that, our EBITDA is in the normal range of 21%-25%. If you look at the last several quarters, our EBITDA margin typically structures in this range, so that's what I mean by the normal range. That's very clear. The second question is for the sale of brand, what you have reported INR 230 crore through revenue line items. What's the cost against that? I guess I'm just trying to say that, what's the EBITDA impact of this number? The total amount, Sameer, it's the total proceeds for the divestment, and therefore, the entire amount falls to EBITDA. Okay. Okay. That's all from my side. Thank you. Thank you. Thank you. The next question is from the line of Surya Patra from PhillipCapital. Please go ahead. Yeah. Thank you for the opportunity, sir. The sir. The first question is on the Revlimid. Your voice is not very clear. Request you to use the handset. Okay. Is it fine? Yes. The first question was on the Revlimid. You mentioned about the likely launch of the product starting September. Just wanted to have a sense, what has been the sort of competitive intensity here? And more importantly, what I was trying to understand is limited volume condition. How rigid is that condition under settlement? Because even the Teva's launch is also under low single- or mid-single-digit kind of volume condition only I would have launched. The prescription trend indicates that they are having double-digit kind of percentage volume currently. That is why just trying to understand how rigid is the limited volume condition for the settlement phase. It is rigid in the case that we can sell exactly the amount stated in the agreement, and the volumes and the market share that potentially is confidential like I mentioned, so I cannot discuss that. Actually it's a very significant launch for us. As for the intensity of the competition, of course depends how many players will be there and what will be their volumes that they can supply into the market at this point of time. That's yet to be seen. We will have to wait and see. We believe that it should be a very good launch for us. Okay. Because my point was also this. If the volume limit condition is also not rigid, then there could be a kind of a larger competition and hence the price erosion could be larger. That is the ultimate thing that I was trying to understand. No, I understand the question. Unfortunately, I cannot share the details of the outcome. Okay, fine. Second question on the geographic revenue mix, what we have said in the 20-F filing. Last year, obviously the double-digit revenue growth if you consider it, is around 16% kind of growth that we have seen. But the last part of the growth has come from the anti-infective segment. There was a kind of a 17-point kind of jump in this segment. Whereas the other segments remained single-digit or muted or low double-digit kind of trend. Whether this is a concern area for the growth of the current year, if we ignore the Revlimid contribution behind it, and that can have a kind of a moderated trend for current year in general for kind of the, say, India, Russia, emerging markets like that. I do not see a concern. Okay. That's clear concern. I do not see a concern. Sure. This is last question, sir. In fact, the original licensing arrangement what you had with Olema Pharmaceuticals of the U.S., whether that $8 million upfront this has been booked in this quarter? No. No, it has not been booked. It is to be amortized over the contract period, which is over four years. Okay. Even the upfront amount will also be amortized over the period? That's right. Okay. Thank you. Thanks a lot. Thank you. The next question is from the line of Tarang Agrawal from Old Bridge Capital. Please go ahead. Good evening. Just one question, sir. On actually, I mean, what we've observed is, you've recycled some of your brands in India. You've got Cidmus on one side and, you've also bought a small injectables, a couple of products. Just wanted to get a sense on why, what is the kind of advantage you get by getting rid of those smaller brands in India. Does this release decent amount of, you know, sales force, which can then be diverted into some other division and the processes behind buying the small injectable suite as well. Yes. Thank you for the question. The divestment in India, we have a clear strategy in which segment we want to focus on and which segment we don't, and which brands we want to focus on and which brands we don't. So what you're going to see in India. And on top of it, you can get very nice value for the brands that are not in the focus, which we like to monetize it. We feel that it's a better alternative for the capital allocation of the company and also for the performance of the company. Likely what we are going to see in India in which we will sell brands that are not in focus. We will actually even buy brands like we did this quarter with Cidmus and the Novartis deals. You're going to see both. This will allow us to establish ourselves when we also add both the Horizon-1 and Horizon-2 activities in India to bring us to the acceleration of the number of sites. In the case of the United States, we are always trying to find those low competition assets, especially if they are injectables, in order to create a better portfolio for the United States and for the customer in United States. If we do not have the means or we did not develop it in the past, we are getting it from others. That's by the way, what we did at the time with Suboxone, that's what we did with Copaxone. It's something that we are doing for many years, and we'll continue to do so. Our pipeline in the U.S. will continue to be products that we develop ourselves, as well as licensing and products that we acquire. Okay. Just to follow up on the India piece, does it release some kind of, you know, management bandwidth to focus on some other brands and kind of maybe, you know, cross-topic or EBITDA that you might have lost by virtue of letting go of these brands? Absolutely it is helping us to focus our resources on the brands that we believe. This is part of what focus means. In terms of growth, we believe that on the long term it will help us to grow. Naturally, quarter on quarter, we may need to adjust for those sales that will be missing, and we will have to be cognizant of that. On the year's basis, we will grow faster actually by focusing on the area that we believe that we have better competitive advantage. Okay. The last one, EBITDA or gross profit, on virtue of divesting these brands? We're not losing, we're actually gaining, because if you take the EBITDA that this product would have made versus the price that you got for it's better deal for the company. Okay. Thank you. Thank you. Next question is on the line of Kunal Dhamesha from Macquarie Research. Please go ahead. Good evening. Just one question, again on Revlimid. The volume, percentage is it calculated annual basis or calendar year basis? Sorry, I couldn't. Kunal, your voice is not clear. Can you? Can you repeat? Repeat? Yeah, I'll repeat. In terms of volume percentage allowed per month for Revlimid, is it calculated on annual basis or calendar year basis? These details are confidential at this stage. Okay. Sorry. I just had one such. Thank you. you. Next question is from the line of Bino Pathiparampil from InCred Capital. Please go ahead. Hi. First just a clarification. This INR 230 crores of brand sales that you generated, it is part of this INR 1,300 crores of India revenue that you have reported, right? Right? Yes, that's right. Okay. Second, you actually mentioned about incremental competition in couple of products. You know, did you see incremental entry of a new player in any of these two products, or is it that you know, existing players got more aggressive? I'm asking this because you specifically said two products. Yeah. In these two products, Apotex launched competition for both during Q1. Okay. Do you mind naming them? I said Apotex, company Apotex. Yeah. Do you mind naming the products? I said it's Suboxone and Icosapent. Oh, okay. Got it. Okay, great. Thank you. Thank you. Next question is from the line of Darshan Jhaveri from Crown Capital. Please go ahead. Hello. Good evening. Thank you for the opportunity. I just have one question, if I may. The performance in this quarter, considering all the one-offs that you had to make, is this performance the base and sustainable quarter run rate, or could you just be particular on that? That will be very helpful, sir. Yeah. This is, I like to use the word consistent. So it's very much consistent one with the strategy and our investment, and consistent also with the performance. With the understanding that we are facing sometimes a situation in the market that sometimes will be in favor and sometimes not. Overall, all the stuff that we discussed, our growth, which will be in the U.S. single digit, outside of the U.S. double digit. The EBITDA and the ROCE targets that we discussed in the past, we are all still there and very consistent with what we have discussed in the past. Sir, just kind of clarifying. The revenue and margins will be along these lines only, right? We would see considerably around the same range in this year. Maybe if you just give us some clarity on what would our normal otherwise look like in FY 2024 or something, sir. Again, we are not giving guidance, but I'm repeating what I said before. We said that we are continuing to grow on a double-digit outside of the US, single-digit in the US, and we are aiming for about 25% on EBITDA and ROCE. This is still there. This is still valid. I cannot guide per quarter or per specific year. This can fluctuate, but we will be in the neighborhood of those numbers, sometimes up and sometimes down. We very much believe that we are in this area, and not just that, we believe that it will even allow us to invest well into the future, so it can be persisted for many years like this. Okay, thank you so much. That answered my question, sir. Thank you so much. Thank you. Next question is on the line of Prakash Agarwal from Axis Capital. Please go ahead. Yeah. Hi, thanks for the follow-up. Just on the injectable business, what is the current size annually, and are we seeing, you know, some supply challenges in terms of syringes, you know, stoppers, et cetera? That's about 16%-17% of our business is from injectable. We do not see right now a challenge of supply. Okay. Because one of your, you know, peer group had talked about in the recent call that there's shortages and stoppers and syringes, especially for the U.S. market. That's why. Okay. I don't recall that. Actually, on the Indivior's you recognizing in this quarter, I understand case was won some time back. What triggered the recognition particularly for this quarter? No. The recognition that we won in the past was on the IP case. If you recall, we were injuncted when we launched the product in June 2018, and we were denied to go to the market for nine months. The $72 million is a settlement for that period of time that we were denied from coming to the marketplace. Yes. This came some time back, when we won the case. I'm repeating. There are two separate issues. One is to win the IP case. Uh-huh. It means that the courts decide that we are in a non-infringement situation. The other is to win the case that we believe that we should get money back because we were denied to go to the market during the injunction period. This is for the second part. This is a settlement that we have entered into in this quarter, and that's why we have accounted for it now? Okay, perfect. Okay, thank you. That's all from my side. Thank you so much. Thank you. The next question is on the line of Madhav Marda from FIS International. Please go ahead. Yeah. Good evening. I just have one quick question. Of the Indo brands which we have sold, like, what is the EBITDA at which we have sold it, the INR 250 crore that you get, right? It was answered before. It's a multiple. They are different brands. They have been sold to different companies at different multiples. The average multiple ranges between 3.5x-4x. Of sales. Just to clarify. I am giving you the sales multiple. Yeah. Of course. course. Okay. That's my only question. Thank you. Thank you. Thank you. Ladies and gentlemen, due to paucity of time, that would be our last question for today. I now hand the conference over to Amit Agarwal for closing comments. Thank you, and over to you, sir. Thank you all for joining us for today's earnings call. In case of any further queries, please get in touch with Investor Relations team. Thank you. Thank you very much. Ladies and gentlemen, on behalf of Dr. Reddy's Laboratories Limited, that concludes today's call. Thank you all for joining us. You may now disconnect your lines. Thank you.