Please note that this conference is being recorded. I now hand the conference over to Ms. Richa Periwal. Thank you, and over to you. Thank you. A very good morning and good evening to all of you, and thank you for joining us today for the Dr. Reddy's quarter 1 FY 2025 earnings conference call. We have with us the leadership team of Dr. Reddy's, comprising Mr. Erez Israeli, our CEO, Mr. Parag Agarwal, our CFO, Mr. M.V. Narasimhan, our Deputy CFO, M.V. Ramana, our CEO for Branded Markets, and the entire investor relations team. Earlier during the day, we have released our results, and the same is also posted on our website. We'll begin the call with opening remarks from the management. Following this, we'll have the floor open for Q&A session. Please note that today's call is a copyrighted material of Dr. Reddy's and cannot be rebroadcast or attributed in press or media outlets without the company's express written consent. This call is being recorded, and the playback and transcript shall be made available on our website soon. All the discussions and analysis of this call will be based on the IFRS consolidated financial statements. The discussion today contains certain non-GAAP financial measures. For a reconciliation of GAAP to non-GAAP measures, please refer to our press release. Before I proceed with the call, I'd 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 Parag. Thank you, Richa, and greetings to everyone. Thank you for joining the call today. Hope you have received a copy of our earnings release documents and press presentation uploaded on our website. It's my pleasure to present results for the first quarter of 2025. We recorded a steady performance during quarter 1 FY 2025, with a double-digit revenue growth and stable EBITDA margins and return on capital employed. For this section, all amounts have been translated into U.S. dollars at a convenient translation rate of INR 82.33, which is the rate as of June 30, 2024. Consolidated revenues for the quarter stood at INR 7,673 crores, which is $921 million, and grew by 14% on year-on-year basis and 8% on a sequential basis. The growth is mostly driven by the generics business in the U.S. and recent in-licensing of Sanofi vaccine portfolio in India. Consolidated gross profit margin stood at 60.4% for the quarter, an increase of 170 basis points over the same quarter in the previous year, and 160 basis points sequentially. The year-on-year increase is on account of favorable product mix and overhead leverage, partially offset by price erosion in the generics market. Gross margin for global generics and PSAI were at 64.7% and 23.1% respectively. The SG&A spend for the quarter is INR 2,269 crores, which is $272 million, an increase of 28% year-on-year and 11% quarter-on-quarter. The year-on-year increase is primarily on account of continued investment in new business initiatives, increase in freight rates, annual merit increases, and building capabilities to enhance operational efficiency. The SG&A cost as a percentage of sales was 29.6% and is higher by 330 basis points year on year and 57 basis points quarter on quarter. We expect our SG&A to be in the range of 27.5%-28% for the full fiscal. Our in-house R&D efforts are further supplemented with collaborations to create a robust product pipeline for small molecules, novel oncology assets, as well as biosimilars to drive future growth. The R&D spend for the quarter is INR 619 crores, which is $74 million, an increase of 24% year on year and a decrease of 10% quarter on quarter. The R&D percentage. The R&D spend is at 8.1% of sales and is higher by 68 basis points year-on-year and lower by 164 basis points quarter-on-quarter. Overall, R&D continues to be a cornerstone of our growth strategy, and we expect the investment to be in the range of 8.5%-9% for the full fiscal. The other operating income for the quarter is INR 47 crore, lower versus last year due to a one-time settlement income in the base period. The EBITDA for the quarter is INR 2,160 crore, that is $259 million, a growth of 16% quarter-on-quarter and 1% on a year-on-year basis. The EBITDA margin stood at 28.2% and is higher by 172 basis points quarter on quarter and lower by 357 basis points year on year. The net finance income for the quarter is INR 84 crores as compared to INR 78 crores for the same quarter last year. Profit before tax for the quarter stood at INR 1,882 crores, that is $226 million. The PBT stood at 24.5% of sales. Effective tax rate for the quarter is at 26%. We expect our normal EPR to be in the range of 24%-25% for the fiscal. Profit after tax for the quarter stood at INR 1,392 crores, which is $167 million. The PAT percentage stood at 18.1% of sales. Reported EPS for the quarter is INR 83.5. Operating working capital as of 30th June, 2024 was INR 11,555 crore, which is $1,387 million, an increase of INR 262 crore, which is $31 million over 31st March, 2024. Our capital investment in this quarter is INR 491 crore, which is $59 million. The free cash flow generated during this quarter was INR 227 crore, which is $27 million. Consequently, we now have a net surplus cash of INR 6,731 crore, that is $808 million as of 30 June, 2024. Foreign currency cash flow hedges in the form of derivatives are as follows: US dollar is $858 million hedged around rate of INR 83.7-INR 84.1 to the dollar, maturing over the next 12 months with NDF, which allows participation when USD strengthen. RUB 6.75 million, with minimum protection rate of INR 0.899 to the ruble maturing in the next six months. Australian dollars, AUD 5.5 million at the rate of INR 66.1 to Australian dollar, maturing in the next nine months, and GBP 458 million at the rate of INR 1.267 against dollar. With this, I now request Erez to take us through the key business highlights. Thank you, Parag. Good morning and good evening to everyone. Continuing the momentum of the previous fiscal, we have commenced FY 2025 on a positive note. We get another quarter of highest ever revenues and stable margins. Our approach to growth continues to include both seeking new businesses and strengthening our presence within existing spaces, in line with our stated strategy. Let me take you through some of the key highlights for the quarter. One, double-digit growth in revenues in Q1 at 14%. Reported EBITDA margins stood at 28% and annualized ROCE stood at 33%. Net cash surplus was $108 million. This quarter witnessed a significant milestone in building global consumer healthcare business with acquisition of Nicotinell, and the second largest brand, as well as related market-leading brands in the nicotine replacement therapy category in markets outside of the U.S. The transaction is expected to close in early Q4 of the calendar year 2024, and operations will transition to us in phased approach. You may remember that another step taken toward building a robust consumer healthcare business in India was the nutraceutical joint venture with the global FMCG giant, Nestlé. The JV operation is expected to go live soon. Strategic collaborations are an important part of our growth story. We have reached the following deals. We licensed Takeda's novel gastrointestinal drug, Vonoprazan, for commercialization in India. We partnered with Novartis Pharma to distribute two of their leading antidiabetics brands, Galvus and Galvus Met, in the Russian retail market. Received exclusive rights from Ingenus Pharmaceuticals to commercialize a cyclophosphamide injection in the U.S. Collaborated with Alvotech for commercialization of their Denosumab biosimilar candidate in the U.S. on an exclusive basis, as well as in Europe and the U.K. Nerivio, the drug-free migraine management device, is now available in five countries, namely India, Germany, Spain, U.K., and South Africa. Our CDMO Aurigene Pharmaceutical Services inaugurated a 70,000 sq ft, state-of-the-art CDMO biologics facility in Genome Valley, Hyderabad, India. On the regulatory front, in May, the U.S. FDA completed a routine GMP inspection of two of our formulation manufacturing facilities in Vadodara and Vizag, and issued a Form 483 with two observations. In June, the US FDA completed the GMP inspection of our API manufacturing facility in Srikakulam, Andhra Pradesh, and issued a Form 483 with four observations. We will address and resolve the issues within the stipulated timelines. We continue to be recognized for focused effort in ESG. We were the only Indian company to be featured in the 2024 list of Global 500 Most Sustainable Companies by Time Magazine and Statista. For the second consecutive year, we were named Asia Pacific Climate Leader in 2024 by Financial Times, scoring the highest among Indian pharma peers. We won the Master of Risk Award for Healthcare and Pharma at the India Risk Management Awards. Through these efforts toward sustainability, we endeavor to contribute to the well-being of our patients, our people, and our planet. Now, let me take you through the key business highlights for the quarter. Please note that all references to the numbers in this section are in respective local currencies. Our North America generic business recorded revenues of $463 million for the quarter, with a year-over-year growth of 19% and sequential growth of 18%. The increase was largely volume-led, coupled with higher market share in certain products, partially offset by pricing pressure in some key products. We launched three new products during the quarter, and we expect the launch momentum to continue in the balance of the year. Our European generic business recorded revenues of $59 million for this quarter, with a year-over-year growth of 4% and a sequential growth of 1%. The increase in base business volume and contribution from new product launches during the quarter has helped offset price erosion. During the quarter, we launched a total of 12 products across markets. Our emerging market generic business recorded revenues of INR 1,188 crore in Q1, a year-over-year growth of 3% and sequential decline of 2%. On a year-on-year basis, market share expansion and revenue from new products more than offset the unfavorable talks. In constant currency, the emerging market grew at 9.8% on overall business. We launched 17 new products during the quarter across various countries of emerging markets. Within the segment, the Russia business grew by 12% year-over-year basis and 10% sequentially in constant currency. India business recorded revenue of INR 1,325 crores in Q1, a double-digit year-over-year growth of 15% Q1 and sequential growth of 18%. The growth was primarily on account of additional revenues from the recently licensed vaccine portfolio from Sanofi and new launches. As per IQVIA, our IPM rank is 10. We have launched certain brands this quarter, in addition to integrating Sanofi's vaccine portfolio. Our PSAI business recorded revenue of $92 million in Q1 of FY 2025, a year-over-year growth of 12% and sequential decline of 7%. The year-over-year growth was primarily on account of improvement in volumes as well as new product launches. We filed 11 Bi master files this quarter. Our R&D investment this quarter stood at INR 619 crores, up 24% on a year-to-year basis, driven by our biosimilar products pipeline. Development efforts across generics as well as novel oncology asset in Aurigene. Further, we will continue to complement our in-house efforts with partnership and collaboration to develop innovative solutions. We have done 22 global generic filings, including 1 ANDA in the US, during Q1 of FY 2025. We continue to focus our core business on generics, biosimilars, and APIs, while investing growth driver of the future in three areas: consumer healthcare, access to novel molecules, and digital therapeutics. We are confident that this strategic growth initiative, coupled with our disciplined financial management investment in our people and driving operational efficiency, will enable us to deliver sustainable growth in coming years. As you may all be aware, Parag Agarwal will be retiring effectively on August 31st, 2024, and would like to devote his time for making meaningful difference to the lives of voiceless animals. I want to thank Parag for his four years of service to Dr. Reddy's as the CFO and for the impact he has had on the company as well as our stakeholders. Parag is leaving a strategic vision for the company, which has placed Dr. Reddy's in strong position for future growth. I am pleased to announce that M.V. Narasimhan, also popular and known as NVN, who is currently serving as the Deputy CFO, will take over as the CFO from August 1, 2024. NVN has been associated with Dr. Reddy's since fiscal 2000. He's already a member of our management council and a seasoned strategic and financial leader. Please join us in wishing both Parag and NVN the very best in the new journeys ahead. With this, I would request NVN to say a few words, and then we'll open the floor for questions and answers. So thank you, Erez, and greetings to everyone. I would like to thank Parag for his invaluable leadership and mentorship. He has been instrumental in Dr. Reddy's financial success, and I look forward to building on the strong foundation that he has created. I also look forward to meaningful engagement with all of you and this committee going forward. Thank you. Yeah, we can open the floor for Q&A now. 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 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. Participants are also requested to ask not more than two questions at a time and to rejoin the queue in case of incremental queries. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have our first question from the line of Kunal Damesha from Macquarie Capital. Please go ahead. Hi. Thank you for the opportunity, and congratulations on the good set of numbers. First one, on the cash flow from operations, which seems to have come down meaningfully, despite our working capital, is largely similar to the last quarter, right? So what is driving the sequential moderation in cash flow generation? Hi, Kunal, thanks for the question. The reason the free cash flow is a bit on the lower side is because of fluctuation in factoring. You know, we do the factoring in various markets, largely in the US, depending on the interest rates and the benefit we get, and because of that, we have rolled back factoring a little bit in this quarter. But overall, the operational cash flow generated from the business is in line with the normal trends. Sure. So it should pick up going forward, right? Yes, absolutely. Yes. Sure. And second one, on the SG&A expense, while you have highlighted that we are incrementally investing, you know, in the new horizon growth levers, et cetera, but there is a step jump in SG&A expense. So is there any one-off included in this quarter's SG&A expense? So, you know, I said that in my opening comments, Kunal, that in this quarter, as usual, we are investing in new business initiatives. There are also some one-offs, like increase in freight rates because of some route issues and the Red Sea. Also a few one-offs in farm. And this is the normal fluctuation that happens from one quarter to another, depending on the sales and the level and the phasing of investment. Overall, we are confident that our SG&A percentage is going to be within the range of 27%-28% for the full year. So, yeah, this is pretty much normal. It's just quarter-on-quarter fluctuation. The percentage you described is, including the amortization, right? No, that's not material. That's a normal amortization of intangible that we always have. The normal level of amortization is included. What is one-off, I would say, is a spike in the freight costs, as I said, and a few other one-offs. Yeah, yeah, amortization, Kunal, will be primarily after we close Northstar. It will not be relevant before then. Yeah. Sure, sure. And one for Hiday is on the launch momentum in the U.S. I think you launched three products in this quarter, and you know, I think our usual guidance is around 20+ products, right? So are we on track to achieve that? And secondly, you also mentioned that we have roughly 25 first to file filings according to us, right? So out of this 25, how many of these are expected to be launched in, let's say, next two to three years? So the answer to the first part, yes, we are on track. How many exact first to file, anybody knows? I don't know exactly to tell you, Kunal. We'll come back to you. I don't recall the number on top of my head, but I'm sure a few of them will be there. But I don't remember how many exactly. Sure, sure. Thank you, and all the best. Thank you. We have our next question from the line of Neha Manpuria from Bank of America. Please go ahead. Yeah. Good evening, everyone. Hope I'm audible. Yes, please go ahead. Okay. Thank you so much. So my first question is on the OTC piece. Now, with the acquisition of the NRT portfolio, the Nestlé JV going online, how should we think about the potential size of the OTC business, let's say in fiscal 2027, 2028? How big do you think this business can be? And are there any more acquisitions or capital allocation that you see in the consumer healthcare business to make it larger? Yes. So the OTC and consumer care in general, it's a focus for us. It's part of the, s o I'm kind of thank you, Neha, I'm kind of building on your questions. We will have basically primarily four spaces. One of the B2B generics, the other is brand generics and innovation. The third one is consumer care, and the fourth is biologics. So that part is about a little bit more than $300, about $320 million currently, spread along North America, Europe, India, Russia, et cetera. The Northstar, the new acquisitions, once come, will be somewhere around the $300 million. So altogether it's $600 million dollar plus, growing. So naturally, it's going to be an important part of the business. Likely that we want to build on the platform of Northstar and to add more assets in the future. So, we see it as obviously a business that we speak in billions in the future, but there is no obviously, it will be very much depends both on the growth as well as our ability to buy more assets. Do you think we can get to that billion-dollar mark with the existing assets, with the Nestlé JV, with the NRT assets, and with MenoLabs, the existing base, by fiscal 2027, 2028? Would that be a fair assumption, or do you think you need more to get to the billion-dollar number? The $1 billion, we will need to buy more. We need to buy more. Okay, got it. And my second question, you know, is on the fourth growth lever that you mentioned, biologics. You know, I think you mentioned, Denosumab is a near-term opportunity. We also have a data set. If you could give us some color on the timelines for filing of these assets, and therefore, when should we expect launch of both these products? You're talking about, Denosumab? Both of them. Denosumab is next year, and what are the other products that you are selling? Abatacept. Abatacept should be December 26th, hopefully, and depends on the approvals or marks beginning of 27th, the calendar. December, sorry, December 26th is the filing. So refiling should be at least day before that. Sorry, sorry, Erez, I, I missed that. So you said, Abatacept filing should be in 2025? Abatacept filing should be the end of calendar 2025. Got it. Okay. End of calendar 2026, as soon as approval looks up. Okay, got it. Thank you so much. Thank you. We have our next question from the line of Amey Chalke from JM Financial. Please go ahead. Yeah, thank you for taking my questions, and congrats on the good set of numbers. The first question I have on the U.S. business, for the quarter, we have seen a good quarter-on-quarter jump, almost $50 million-$60 million. Is it possible for the management to give some breakup, how much would be contributing from the new product launches, which we have recently done, and how much would be from the base business improvement? Thank you. So most of it is from the base business. Most of it is the products that we had before, and the contribution of the three products helped the growth, but the lion's share of the growth came from products that we had before. Going ahead, how should we think of the quarterly U.S. revenue? Is it normalized from here, or do you expect it to maintain at $450 million? No, what I'm expecting from the U.S., and, is to continue to grow. So I kind of intend the discussion that we had in the past. We have the capability, and I'm excluding even Linzagolix, this kind of discussion, to grow in single digits, meaning to compensate for any price erosion on year-to-year basis. That's what we did in the last six years, and this is what we are going to do. And from time to time, we have those upsets that come from after-market or specific situations. Right now, it looks like that the North America activity should continue to grow throughout the year. Quarter-to-quarter, it's hard to tell. It's always fluctuating. I cannot guide on quarters, but I can absolutely say that we are going to continue to grow throughout the year also. Sure. The second question I, I have on the India business growth, which is around 15%. In the opening remarks, we said that some of it is coming from the vaccine business, which we acquired. Is it possible to quantify how much will be the base business growth? Yeah. So it's, let's say without the vaccine, it's probably mid-single digits, without it. Sure. Thank you so much. I will join back with you. Thank you. We have our next question from the line of Damayanti Kerai from HSBC. Please go ahead. Hi, thank you for the opportunity. Continuing on India, so, just want to understand now, Sanofi vaccines contributing meaningfully in your India numbers. Is this the current base, which we should assume that you will be going from the base of 1Q in coming quarters? Or how should we look at India growth in near term as well as in medium term? The baseline of India without acquisition will be double digits this year. Okay. And this base business, you said it grew in single digits during the quarter, excluding- Well, it was missing the digit, and it will be double digits for the year, and for sure, and for the next quarters. Sure. Can you update us on Nestlé JV, how that is progressing? Progressing very nicely, and, we hope that in the beginning of August, we can announce day one. Likely August first, but, we, we will announce it when it will come. In August? August first. Okay. My second question is on your biologics efforts. So, can you let us know what is the kind of spend you are doing for this line of business? And, you earlier mentioned meaningful sales should be starting from 2027, right? So, so between now and 2027, if you could just talk on the cost part, for your biologics effort. Yes. So on biologics, we have just maybe just to frame what we call biologics in the company. We have biosimilars, which is about, I think, if I'm not mistaken, 20%? No, of the R&D. About 20% of the R&D and about 10% of the profit. This is in addition to that, we are ready to scale up our CAR-T to launch in India, and we are working on that as well. We normally don't classify. I'm assuming that you're asking me about the biosimilars? Yes. This is also a very, very important activity for us. In addition to that, we are engaging in licensing for various markets. So we mentioned the Denosumab already, but we have also local activities in which we are licensing products for specific markets, especially in emerging markets. Likely that until the end of the decade we will have a significant number of deals that we are working for those markets. Then after the Denosumab, the next global product for us will be rituximab, of course, that we got the recent approval in Europe, and we hope and we will get later in the year the. For the U.S., we will have Abatacept, like I mentioned to NIHA before, likely the end of 2026, beginning of 2027. Okay. And all these products which are coming, say in 2026 and beyond, you will be marketing on your own, right? Or the way, like, previous two products had gone through partners. Besides rituximab, that it's a partnership with Alvotech, the rest is we will do by ourselves, including United States. Okay. Thank you. Thank you for your response. Thank you. We have our next question from the line of Tushar Manudane from Motilal Oswal Financial Services. Please go ahead. Yeah, thanks for the opportunity. So just again, on the North America sales, on the base portfolio, mid like ex Revlimid, as you highlighted, the price erosion is in the range of, high single digit. And despite that, the, the sales paid year-on-year or even a quarter-on-quarter, whereas in a very reasonable jump. So, so just to understand if there was any part-specific product opportunity which would have, because of the product shortage or some competitor going away, or, or how to think about the, base business, and the sustainability of? So first, I did not mention the number that you're saying, so, so please don't quote me, because I did not say it. Second, yes, it is going to be consistent, and we will see that it grows. So it's not particular product, it's actually multiple products, primarily because of great service that we are getting, giving in the United States to customers. Got it, sir. Yeah, yeah, got it, sir. And on the India-based business, so the growth has been quite moderate, ex, ex NOP. So how do you think of, you know, scaling up this growth? As I mentioned, the growth will be double digits even without the inorganic, and the inorganic will be on top of it. All right. Thank you. Thank you. We have our next question from the line of Surya Patra from Philip Capital India Private Limited. Please go ahead. Yeah, thanks for the opportunity, and congrats on the great set of numbers, sir. So my first question is on the Aurigene biologic facility, what we have inaugurated. So, what is the kind of how big is the investment there? And also I wanted to understand, is it for the biosimilar pipeline, what we have created, or it is targeted towards the CDMO opportunity, what we would be thinking and that we have been talking? So if you can give some clarity on this. Yeah, that specific investment is for the CDMO activity of the biologics for Aurigene. So that's the primary purpose of this. The level of investment is a few hundred INR crores. I don't remember exactly how much. INR 300 crore, you said, sir? Yeah, in terms of CapEx. Okay. Is it backed by any, generally, CDMO business, generally, many times we find that it is backed by some contract or some association or some kind of collaboration with the target party. So is it, as of now, currently backed by that? And when do you think that regulatory clearance of this plant, that one should expect? So it does, we do have contracts that pay for this investment. These are all early stage projects that come from innovators. So it doesn't require now any specific regulatory activity. Naturally, if it will continue with this kind of traction, we will need to have a scale-up and then discussion, and this will come probably later to the years. Right now it's primarily for R&D activities, so it's more of the D of the CDMO rather than the manufacturing. Okay. Okay. And my second question is on the, the volume share rise, as per the settlement in case of lenalidomide, whether you have seen that volume share rise, which was indicated as part of the contract? It's the product is going exactly in accordance to the contract. The volume is not, is impacting primarily by the type of agreement and less about capturing market share or anything like that. And so far so good. We are selling the product exactly in accordance to the contract. Sure, sure. Just one small clarification regards the trade costing what you have mentioned, Parag. So, how serious and critical is this cost issue it did for the quarter? And, is it fair to believe that this is likely to continue, at least, in the next couple of quarters, the way the trade is happening, U.S., China? Yeah. So most of it is related to obviously the conflict in the Middle East, and we need to circle Africa. And in some of the cases, because of the timeline, we need to fly material instead of shipping it by sea. So obviously it's... This is a primary issue, so obviously I wish I could know about when this conflict will end, hopefully it will end. But yeah, the impact is a few tens of INR crores. I don't remember exactly how much, but that's the impact. Okay. Is it fair to believe that the point around 0.6, less than 1% kind of what we sequentially, what we have seen in ADA, large part of that is because of this trade cost? I would not say large part. I would not say large part. It's, it's, it should be around, 50 or 60 calls, something like that, so I don't think large part. The main part is investment in capabilities and new products and new business initiatives. We are leveraging the fact that we have, if you recall, our previous discussions, we want to be give or take. It's never that accurate. In the sweet spot in which we are delivering, for the shareholders, but also investing in the future. So we are absolutely using the opportunity to invest more in the business, whether it's R&D or CapEx or new businesses. The SG&A, if it was the lion's share, is that, but yeah, also freight cost and other overhead also, like Parag mentioned. Sure. Yeah. Thank you, sir. Wish you all the best. Thank you. Thank you. We have our next question from the line of Shyam Srinivasan from Goldman Sachs. Please go ahead. Yeah. Good evening, and thank you for taking my question. Just, between Parag and NVN, well, you can be generating about $220 million-240 million per quarter, in terms of cash flow per quarter. We have $2 billion in cash equivalents. We're gonna pay for this NRT, which I think the upfront payment will likely be happening. But even after that, we seem to have lots of cash, and cash flow generation. So just want to understand, you know, the next two, three years will likely. I'm sorry, you're sounding muffled in between. Yeah, yeah. So all I was asking about capital allocation and $1 billion of cash and cash equivalents, and probably cash flow generation of $200 million per quarter. We'll likely pay for the NRT therapy coming up next, but even after that, we are gonna have significant cash and cash flow generation. So the question is around the two to three years, whatever means, which are the areas we're gonna likely continue to invest? I believe, Erez, in your comments on India, you said that excluding acquisitions, we grow double digits. So maybe in India, which are the areas we are likely to look at? Yes. So thank you for the question. Indeed, a very important strategic question. First, we believe that we have about $2.5 billion that we can invest in organically. That depends, of course, on the time and, and time, but we have enough financial capacity without even changing dramatically ratings or anything like that. So it should not impact the rating at all. And of course, we want to invest in each one of the four spaces that I mentioned. We do want to invest in our B2B generics, in our innovation, in our consumer care, as well as in our biologics. The primary way to use it is less of mergers and acquisitions, and more about collaborations, licensing, and from time to time, we will buy also assets or rights to the assets. So our preference is to have access to products, product or products that are complementary to our portfolio, that allow us to be in a very comfortable strategic position in each one of the segments, in each one of the geographies. Lastly, we are aiming for high levels of IRR, and for sure better than the cost of capital that we have for the company. In addition to this, we are using the cash for internal activities, so we are investing in CapEx, especially in the categories like biologics, and CDMO, and our injectables. We believe that we have a very interesting pipeline for the future, primarily contained of injectables, and primarily many peptides products. So this is where the capital allocation will go, and we are building the growth of of the next five years, when six, when seven, et cetera, as we speak, and we are using the relatively comfortable financial positions that we have now in order to invest and to build that position into the future. Hopefully, it address your question. Yes. Thank you, Erez. Thank you for that. Just one follow-up. In the past, in terms of deals in India, valuations have been a hurdle. Do you think our philosophy will likely change now if you were to look at transactions in India? Recently, many of your peers have done, can I say, high valuation acquisitions. Is it something that Dr. Reddy's will be also willing to look at? We are looking at all the deals in India. So, to be very clear, India was, is, and will be forever a very important market for us, and for sure, a very important country for all the activities of Dr. Reddy's. India is absolutely a focus, and we are going to invest in India. We feel that the fact that the market, the generic and brand market is now single digit, plus the cost of capital went up over the years, presenting the situation that if you have a cash transaction, at least we don't see a reason to buy EBITDA, in which only the interest that you pay to the banks will be more than the EBITDA that we get. This kind of transaction, we will not do. If the deal is better than across the capital, absolutely, we'll do it, and India will be absolutely a priority. Got it. Thank you, Erez, and bye. Thank you. We'll take our next question from the line of Abdulkader Puranwala from ICICI Securities. Please go ahead. Hi. Thank you for the opportunity. My first question is pertaining to the vaccine business that we have been licensed from Sanofi. Could you help us understand, you know, how the growth profile has been in this particular segment? And, you know, what are the kind of investments you will have to do to grow this business? We acquired this business from Sanofi as what we call the bridge. It's an anchor product will allow us to bring to the segment in the future additional products. So when we identify a space that we want to claim, we are trying to build what we call the anchor activities that will allow us the capability, whether it's product management or the sales force, whether know-how of the product, et cetera. So the intent is to buy, to grow it in the best way we can, the current business, but to add on it over the period of time additional products that will come from licensing and from other companies. Okay. So, I mean, have you also taken some MRs, which are additionally pertaining to Sanofi, would be now been our payrolls, or how is that organization here? We bought also the sales people from Sanofi. Okay. Thank you. Thank you. We have our next question from the line of Jainil Shah from JM Financial. Please go ahead. Hi. Thank you for the opportunity. So my question is related to the NRT acquisition. So, Haleon in their press release have mentioned that the gross assets related to the acquisition are GBP 413 billion. So if you can explain, why is it so high, and is it fair to assume that a large part of this would be goodwill? Yeah, I did not personally see Haleon's balance sheet, so you probably need to ask them. I'm assuming that it's mostly intangible. Okay. Yeah. Thank you, sir. Thank you. We have our next question from the line of Kunal Damesha from Macquarie Capital. Please go ahead. Thank you for the opportunity again. I just wanted to understand, has there been any business impact from the Microsoft outage that was there lastly for us? No, zero effect on us. Sure. Sure. And, and secondly, on the Nestlé JV, I didn't understand what will start from August first. I think we have incorporated JV as of now. But you are saying the operational activity will start from August first? Yes. So, the day one is the day in which the JV will work together, and whatever we record, we record what we had until now, plus what Nestlé used to have before it. So I say it's basically, you know, adding, our current, products like Celevida, et cetera, into the JV, is the way to understand it, right? And then- Yes. Nestlé's products.... Sure. And I think the initial activities is to kind of, you know, customize the product, Nestlé's product, global products for Indian market, et cetera, right? For that, we'll have to invest. So this investment will be part of P&L investment, or would this be more like a balance sheet investment, which will capitalized till we commercialize those products? So let me clarify, maybe. First to your first part, yes, the product Celevida and the other products that we have, we will add to it the Nestlé activities, and both of them will be part of the JV, starting from August first. As related to investment and all this stuff, the intent is over time, to bring additional brands, primarily from Nestlé, the JV, and to introduce them to India and to grow them. Specifically at the very beginning, I don't anticipate the impact on the P&L, for sure, not in a significant way. Sure, that's very helpful. The last one from my side. I believe we also undertook the expansion of our biologics facility, right? So is that complete now? And with that completion, if you can help with the current capacities, is it more than enough to cover us for the next two, three biologics or biosimilar that we have in pipeline? We are still investing in our Bachupally facility. The intent is to become something like 60 kiloliter in that facility. This probably will take us additional two years to reach that level. You're going to see additional CapEx in Bachupally, at least for the next two years. Sure. And 50K is the estimation, like, the future capacity? What is the current capacity? I think 15, if I remember, 15,000. 15K-50K. Okay. Perfect, thank you, and all the best. Thank you. As there are no further questions, I would now like to hand the conference over to Miss Richa Periwal for closing comments. Over to you. Thank you all for joining us for today's evening call. In case of any further queries, please get in touch with the investor relations team. Thank you once again on behalf of Dr. Reddy's. Thank you, members of the management team. On behalf of Dr. Reddy's Laboratories Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.