Ladies and gentlemen, good day and welcome to the Q3 FY24 earnings conference call of Eris Lifesciences Limited. We have with us on call today Mr. Amit Bakshi, Chairman and Managing Director, and Mr. V. Krishnakumar, Chief Operating Officer and Executive Director. 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. Please note that this call is being recorded. I now hand the conference over to Mr. V. Krishnakumar, Chief Operating Officer and Executive Director of the company. Thank you and over to you, sir. Please go ahead. Please check if your line is muted. Am I audible now? Yes, sir. Please go ahead. Yes, sir. Please go ahead. Wonderful. Welcome, everybody, to our Quarter Three conference call. As we get into today's conversation—yeah. So as we start today's conversation, we will start with you know recapping our journey since the public listing to date. So, you know, we had a public listing in financial year 2017. If we look at where we've traveled over the last six years, so our market rank at the time was number 29 and we were at a covered market of around INR 35,000 crores. Over a period of six years, we have evolved to market rank number 21 and now we address a covered market of around INR 90,000 crores. So over this period, we have generated an operating cash flow of around INR 2,100 crores and secured external funding at competitive rates. In terms of capital deployment, we have invested around INR 1,900 crore rupees in inorganic growth. We have deployed another INR 400 crore by way of CapEx and another INR 400 crore by way of dividend and buyback. We have expanded our market share in diabetes, which is our core therapy area, from 3.5%-5%, and in VMN, from 1%-2.5%. We have successfully diversified into new therapies, which include dermatology, CNS, women's health, nephrology, and insulins. All of this has been achieved while keeping the fundamental strength of our business model intact. Our six-year average gross margin continues to be more than 80%, EBITDA margin of more than 35%, and operating cash flow to EBITDA ratio of more than 75%. We have achieved significant diversification in our specialty mix over the last two years. Our core therapies of diabetes, CVD, and VMN, which used to account for 76% of our revenue, now account for 63%. Our emerging therapies, consisting of derma, CNS, women's health, and nephro, now account for nearly 30% of our revenue. There has been a clear-cut value creation through our dermatology acquisitions. As you all know, we deployed INR 1,265 crores across three deals in financial year 2023, primarily to build up our dermatology franchise. We are happy to share that the expected revenue of this business in the current financial year is to the tune of INR 375 crores with an EBITDA of INR 130 crores. This marks significant value creation over a period of less than a year where we have an FY2024 EBITDA margin of 35%, which is up from 24% in FY2023 and 10% in FY2022. Effectively, we have paid a one-year forward multiple of 10x EBITDA for this acquisition, which represents the financial discipline that we exercise when we evaluate teams. This experience has also helped us realize that we might be good at turning around underoptimized businesses. We expect strong cash generation and significant growth ahead. The projected operating cash flow from our business during the next financial year is ex next three financial years is expected to be in excess of INR 1,800 crores. The projected operating cash flow over the next four to five years is expected to be in excess of INR 6,000 crores. As we look ahead in terms of where we want to be over the next four to five years, we clearly articulate our vision 2029, which is that we want to be a INR 5,000-crore revenue company in financial year FY 2029. In terms of initiatives to get there, we would like to announce our acquisition of Swiss Parenterals, which is a segue for us into the sterile injectable space. Swiss Parenterals is a dossier-driven business in generic and specialty injectables focused on emerging or ROW markets. What makes Swiss Parenterals attractive to us? To walk you through some of the key points: Swiss currently derives 100% of its business from the export of sterile injectable products to more than 80 ROW markets in Africa, Asia Pacific, Middle East, and Latin America. We find this a very exciting platform to build an India sterile injectables platform. With a strong product portfolio and manufacturing capability that Swiss brings to the table, it provides the ideal platform for us to launch an India-focused sterile injectables business. Swiss manufactures the widest range of SVPs in its two manufacturing units in Gujarat. These are accredited by more than 50 regulatory agencies, including some of the stringent bodies like EU GMP, Brazilian ANVISA, Mexican COFEPRIS, and the Australian TGA. We find Swiss's business model very interesting. It's a dossier-driven model, which is essentially an IT-driven model. An existing product range comprises of more than 1,000 active dossiers across nearly 200 molecules. The growth pipeline consists of another 1,000-plus dossiers across existing and more than 40 new molecules. Swiss has an R&D team with significant sterile development capability, including complex technologies such as liposomal, microsphere, oil-based, and depot injections. Swiss has a strong set of financials with a FY 2023 revenue of INR 280 crores, a 37% EBITDA margin, and a 25% profit after tax margin. The business model of Swiss is debt-free and cash-accretive. Looking ahead, the combination of Eris and Swiss Parenterals throws up some new and very exciting growth opportunities. To walk you through these opportunities: Eris is presently focused on the Indian market, and Swiss is presently focused on the ROW markets. The core competence for us today is that we are a strong platform as a leading domestic pharma corp, and we are present at more than 8,000 midsized hospital OPDs across India. The platform that is provided by Swiss gives us a direct entry into the small-volume parenterals market in India. We will leverage the Eris platform and Swiss product range to establish an SVP-branded formulations business in India. This is an additional addressable market for us of more than $3.5 billion per annum. This business is predominantly an injectables business now. But the channel presence and the distribution reach of Swiss in the ROW markets gives us the opportunity to build an oral solid dose business in the ROW markets. Towards this, we will leverage the Eris oral solid manufacturing capability, Swiss's ROW channels and distribution presence, and the marketing expertise of Eris Lifesciences. As far as the core business of Swiss Parenterals continues, small-volume parenterals, we will continue investing and expanding Swiss Parenterals's product range, dossier portfolio, and market coverage. The addressable market here is a significant opportunity because ROW generics is a market size of more than $120 billion, where steriles account for about $12 billion and orals account for more than $100 billion. To give you a quick overview of the manufacturing footprint of Swiss Parenterals: Swiss Parenterals has two manufacturing units based in Gujarat. Unit one is for general, and unit two is for beta-lactams and antibiotics. As you can see, these units are capable of manufacturing the widest range of sterile dosage forms, including liquid vials and ampules, lyophilized, prefilled syringes, dry powder injections, inhalation anesthetics, and so on. Unit two has dedicated blocks for beta-lactams, penicillins, cephalosporins, and carbapenems. Both these units are presently being run as a single-shift operation, providing significant additional capacity for growth. To take you through some of the detail around R&D capabilities and regulatory accreditations: Swiss operates an R&D lab which includes state-of-the-art formulation development, analytical development, and pilot plant infrastructure. It has a team of 15 R&D professionals with a track record of having developed complex dosage forms. Swiss facilities are accredited by more than 50 agencies worldwide, some of the illustrative ones being EU GMP, Brazilian ANVISA, Mexican COFEPRIS, and Australian TGA. Swiss brings an impressive collection of intellectual property with a product portfolio of more than 1,000 active dossiers across nearly 200 unique molecules in 80+ countries and a pipeline encompassing another 1,000 dossiers across existing and 40+ new molecules. So all in all, we believe this is an ideal platform for Eris to leapfrog into sterile injectables and the ROW markets. To also remind ourselves of Eris oral solid manufacturing capability: We have two manufacturing units at Guwahati and Ahmedabad, which are capable of a wide range of oral solid dosage forms, including tablets, capsules, and soft gels. The Ahmedabad unit also has the ability to do ointments. Both these units are WHO GMP compliant. Going forward, we propose to secure PIC/S approvals for these facilities and jump-start ROW exports by leveraging Swiss Parenterals channel relationships. To give you an overview of the deal contours: Swiss Parenterals Limited has been valued at INR 1,250 crores, which implies 11-12x EBITDA multiple of FY 2024 expected. Eris has signed a definitive agreement for acquisition of 51% equity stake in Swiss Parenterals Limited for a consideration of INR 637.50 crore. Out of this, INR 200 crores will be paid at closing, and the remaining INR 437.50 crore will be paid after 12 months from closing. An additional 19% stake in Swiss Parenterals will be acquired at closing by the Eris promoter group for INR 237.50 crore. Hence, collectively, 70% equity stake will be acquired by Eris and its promoter group, thereby minimizing the additional debt on Eris' balance sheet. The remaining 30% stake will be held by Naishadh Shah, Director of Swiss Parenterals, who will be a long-term equity partner in the business and in charge of day-to-day operations and growth. The purchase consideration payable by Eris at closing, which is INR 200 crores, will be funded through debt financing. This transaction is expected to achieve financial closure before 31st March 2024. Now we move to the Quarter 3 performance highlights. I'm happy to share with you that Eris continues to be ranked among the top 10 fastest-growing companies as of December/March 2023. The IPM growth during this period was 6.8%, and Eris has registered a growth of 12.8%, which is 600 basis points ahead of the market. This has been driven by market-beating growth in both our core therapies as well as emerging therapies. Our core therapies, which constitute 63% of our revenue, consist of diabetes, cardiovascular, and VMN. The market growth in this segment was 4%, and Eris clocked a growth of 7%, which is 300 basis points ahead of the market. Our emerging therapies, which constitute nearly 30% of our revenue, consist of dermatology, CNS, women's health, and nephrology. Here, the market growth was around 7%, and Eris' portfolio clocked a growth of 28%, thereby outperforming the market by a factor of 4x. Coming to the strategic priorities for FY 2024 and where we stand at the end of Quarter three: So we had articulated four key priorities at the start of the year, the first of them being successful commercialization of our new product pipeline. I'm happy to inform you that the first two FDCs from our own R&D pipeline, Sitagliptin Gliclazide and Dapagliflozin Gliclazide, have been launched in December 2023. And we have also undertaken a strategic launch of a new molecule, which is Empagliflozin plus Linagliptin combination. We have also continued to launch new products in dermatology, and we have more launches planned for Quarter four. Margin improvement through derma insourcing was a key objective we had outlined, and I'm happy to share that we commenced commercial production in our Gujarat facility in the month of December ahead of target, and this is expected to ramp up in the coming months. Last but not the least, our injectable anti-diabetes franchise has scaled up with a Quarter 3 revenue of more than INR 12 crore and a YTD revenue of more than INR 31 crore. The current revenue run rate is nearly INR 5 crore per month. This business has registered an impressive IPM gain in this span of one year. Quarter 3 IPM is trending at nearly INR 3.5 lakh, and this represents a IPM gain of nearly 1.8 lakh during this year. We have secured approvals for Liraglutide and Glargine from MJ's pipeline, and these are lined up for a Q1/Q4 launch with consequent margin improvement. We continue to be focused on building our own R&D program. Since the last time we spoke to you on this, we have expanded our R&D pipeline to 26 candidates, which includes two categories of products: fixed-dose combinations, which are first in the Indian market, and drugs which are commercially approved in the U.S., which will be launched for the first time in the Indian market. So we have an active pipeline of 26 candidates, which are targeted to be commercialized over the course of the next financial year. Our new launches, consisting of line extensions and combinations, have done exceedingly well in the first nine months of this financial year, to the extent that three mother brands, Tayo, Gluxit, and Remylin, where we have launched several line extensions and combinations, are all set to join the INR 100-crore club very soon. Tayo is currently at a MAT value of INR 80 crores in sales and has registered a Q3 growth of 45%. Gluxit is at a MAT value of INR 75 crore with a Q3 growth of 21%, and Remylin is at a MAT value of nearly INR 70 crore with a Q3 growth of 51%. So by the end of financial year 2025, we are set to have seven mother brands in our 100-crore club. Now, coming to the key numbers for the quarter and the nine-month period: Our branded formulations segment continues to account for 97% of our total revenue, and we registered a 16% growth in our branded formulation revenue in Quarter 3 as well as for the nine-month period. We registered a growth of 13% in the branded formulations IPM. Q3 gross margins stood at 83%, which were up by nearly 200 basis points and represents a growth of nearly 20% year-on-year. Our Q3 EBITDA margin stood at 37%, which represents a growth of more than 300 basis points and a year-on-year growth of 27%. Nine-month insulin sales stood at INR 31 crores with the latest monthly run rate of nearly INR 5 crores. In terms of the consolidated picture: Quarter 3 consolidated revenue was up by 15% to INR 486 crores, and YTD operating revenue grew by 14% to INR 1,458 crores. Gross margin was up by 270 basis points in Quarter 3 and nearly 400 basis points for the nine-month period, demonstrating a year-on-year growth of 20%. EBITDA for the quarter stood at INR 175 crores, representing a 36% margin. The year-on-year growth for EBITDA was 28% in Quarter 3 and 26% YTD. Operating cash flows continued to be robust, with around 70% of EBITDA in Quarter 3 and at 73% of EBITDA for the nine-month period. Profit after tax for the quarter stood at INR 101 crores and INR 317 crores for the nine-month period. Cash EPS for the nine-month period stood at INR 30, which represents a year-on-year growth of 9%, and net debt at the end of the quarter stood at INR 887 crores. This brings me to the end of this presentation. Should we begin with the question-and-answer session? Yes. Just give me a minute, please. Yes. We can now begin with the Q&A session. Thank you very much. Ladies and gentlemen, to ask a question, please click on the Raise Hand icon tab available on your toolbar or on the QA tab available on your screen. Kindly turn on your mic when the operator announces your name. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Go ahead. Go ahead. We'll take a first question from Kunal Dhamesha from Macquarie. Please go ahead. Hello. Can you hear me? Yes. Please go ahead. Yeah. Thank you for the opportunity, and good afternoon. So the first one on the financing of this Swiss Parenterals deal, I think I missed some part as to how the deal would be financed, you know. So if you can just, you know, help me with that. Kunal, just a moment. I want to interview Naishadh, who is with me. Naishadh, can you come close to me? Yes. Thank you. Naishadh has been responsible for, you know, pivoting the entire export business, Parenterals business, from Swiss. He's the person which motivated us, basically, beyond numbers and beyond the character of the, the business. Naishadh is, you know, we are committed to help each other to make sure that all that what we said in the, you know, in the presentation comes to light. So, if there's any question to Naishadh, I mean, he's there with us. I welcome you from your side also to the team Eris. Thank you. Kunal, KK, you take this up, please. Yeah. Kunal, am I audible? Yeah. Yeah. Yeah. Yeah. Okay. So the consideration payable at closing is INR 200 crore from Eris Lifesciences, which will be funded through debt financing. Okay. Okay. The INR 475 crore, Please go ahead with your question. So the INR 475 crore NCD will be sitting on the Swiss Parenterals balance sheet? No, no. INR 437.5 crore of NCD is being issued by Eris Lifesciences, to the sellers in view of the shares that we are acquiring. So INR 200 crore is cash, and INR 437.5 crore is one-year NCD, with a coupon rate of 8%. It will be due after one year. Okay. Perfect. Perfect. The second question is on our standalone performance. When I look at our standalone performance, there has been a drop on a QOQ basis, meaningful drop, you know, but the consolidated seems kind of okay. So what's the disparity on the standalone versus consolidated? Yeah. So, Kunal, one important thing to realize, ever since we commenced a Gujarat facility, the Gujarat facility doesn't sit in the standalone offices, right? It sits in a wholly-owned subsidiary called Eris Therapeutics, which doesn't reflect in the standalone. So a lot of the incremental growth, a lot of the new products, which is very much part of the core Eris Lifesciences-based business, but it is actually sitting in Eris Therapeutics. So that is the reason why you see that it is not being completely reflected in standalone. So which is why, going forward, standalone would not be an adequate reflection of our base business. I would encourage you to look at the domestic branded formulation segment reporting that we do because that is really reflective of our branded formulations business. Sure. Sure. The third question on the Swiss Parenterals acquisition, you know, while you have highlighted that you will be utilizing the platforms, you know, both ways, right, Swiss Parenterals products in India, have you put any numbers around as to how much you can, let's say, achieve because the acquisition would probably close very soon? So let's say in year one, year two, or year three targets of, you know, how much you can build in India and then how much oral solid franchise you can build in ROW, if you can provide some color, would be great. Be great. So, Kunal, the oral solid piece, which we need to build from the Swiss channel will take some time, so I don't really have a color. Naishadh has told that it will be like INR 30-INR 40 crores for this year. But on the Indian side on the Indian business, you know, we are addressing a very, very large market in India. We just showed you INR 3.5 billion, but these data are not reflective of the complete picture because a lot of it is supply also. So we have taken a target of around INR 100 crores for the first year on the domestic, injectable side. Okay. Okay. Perfect. And then let's say aspirationally, three years, medium-term targets, where do we see let's say the INR 9,000 crore or INR 5,000 crore revenue target that we have given for FY29, you know, where do you see the contribution of, you know, the ROW or India? So, you know, FY19, FY29, what could be the mix of, you know, ROW versus India business? How should we look at it? So, Kunal, we haven't really taken a lot of growth in the ROW business as of now because, you know, we have to still go through the ropes. And, we and Naishadh will now sit and plan the entire five-year thing. You know, it is, you know, a lot of products and goes here. So we haven't really kind of taken those, you know, upsides, you know, like, say, for example, starting our own marketing in one of the ROW or a couple of ROW countries, which some of our peers have really pulled up very well. So we haven't taken those into account. The larger the most of the growth which you see here has been on the domestic piece. Now, look, I don't feel that a 2%-3% market share in injectable is a very difficult thing. Also, Kunal, understand that there is, in my view, around INR 10,000-INR 15,000 crore of market, which actually needs you to be backward integrated Now, whether it is complex injectables or it is PFS or, you know, some kind of liposomal. So, and that is where the competition has always been limited in the Indian market also. So right now, we are thinking that if it is like INR 40,000 crore, we feel that we can pull out a 2% market share over a period of time. So that's a broad thinking. But INR 100 crore number, which I'm telling you, for the next year and, Kunal, these are not businesses which will scale up prescription on prescription. So when I say INR 100 crore, don't be taken aback as if, you know, it's too much. So you see, the only insulin piece we would be kind of consolidating by INR 35-36 crores in this year, which is very niche compared to the overall market. So that's how the overall thinking is going on. INR 100 crores, we have done our numbers, and we have a broader understanding that we will aim 2%. The last part of it is will come from products which are a little difficult to enter. Okay. Let's say I think, you know, just one more with your permission. We had kind of, you know, target of doing revenue of around INR 2,600 crore by FY26. Would that target include the Swiss Parenterals number, or we still stick with our, you know, whatever we had at that point in time? We can achieve INR 2,600 crore, and the Swiss number would be additional? Additionally. Kunal, I am not given. I don't have that thought in my mind. 2,600 is coming where from? That's kind of the estimate. Estimates. Okay. So, I don't have a handle, but I can tell you, Kunal, that if everything goes well, we should be in the range of 2,700+ in the next year. Okay. Perfect. Thank you. And all the best. Thank you. Before we take the next question, would like to remind participants to please use the Raise Hand option available on the toolbar. We'll take the next question from Sumit Gupta from Motilal Oswal. Please go ahead. Mr. Sumit Gupta, your line is unmuted. Please go ahead with your question. Mr. Sumit Gupta? Hello. Hello. Yes. We can hear you now. Please go ahead. Yeah. Thank you for the opportunity. I just want to know what is the cash flow prediction for this deal in FY25? Sorry. We couldn't hear you very clearly, Sumit. What will be the Gross block prediction for this deal? Gross block addition. Yes. I think, tangibles and intangibles will, in total will be around INR 600 crore. INR 600-INR 25 crore. Okay. And what will the depreciation? So it is including both tangibles and intangibles, right? Both. So they have tangibles also because all the dossiers will be intangibles as IPs, and the factory and everything will be tangible. So. Okay. Approximately, averaged out will be 20 years. Okay. And what would the likely depreciation rate or overall, for the next two years, FY 2025, 2026, going forward? No, no. It's a straight-line method, so it's everything is equal for 20 years. Okay. Thank you. Thank you. We'll take a next question from Harith Ahamed from Avendus Spark. Please go ahead. Hi. Thanks for the opportunity. We can't hear you clearly, sir. Am I audible now? I'll try to be louder. Yes. Yes. Please go ahead. Yeah. Thanks for the opportunity. I'm looking at Eris's history over the years, and I see that so far we've focused on the domestic market exclusively. What prompted this change in strategy to acquire an asset which is directly to exports? That's my question. Yeah. If I hear you right, you are saying, looking at the history, you always wanted to be a domestic-focused, and what prompted us to get into this asset. Am I right? Yeah. Yeah. So, look, at a broader term, Harith, you know, it's about it's about growth. There is the there will be a point of time in the growth trajectory where you will have to move into other geographies. And this is a path which has been taken by, you know, everybody, I think, in the industry, if you count all of us, you know, who have moved up the value chain. So number one, we were now we were now looking at a INR 5,000 crore, and this was, you know, in our head for quite some time, that what will be the time when we will look for opportunities which are other than the Indian opportunity. And in my view, an ROW is a is the best fit after the branded, you know, branded formulation business. And even in ROW, having a business which is parenteral with 1,000 dossiers and at this kind of EBITDA level is something which we found very, very difficult to get. So we might have taken one more year to really, you know, get very intensive in terms of, you know, looking out. But because this asset we liked so much because if you if you see the parallels, it is difficult to find a parallel of a INR 300 crore business all export and all parenteral with so many of those so many dossiers. So number one, it had to happen one day. That's the general way, natural progression of a bankruptcy company based out of India. And second, we just fell in love with both the business and with Naishadh when we you know, when we spoke about everything. So I think, put together, we found this is a good time for us to get in. Okay. Thanks for that. And, and, my second question is on the business mix of Swiss Parenterals. Can you throw some light in terms of key markets for the company and also revenue mix in terms of antibiotics versus other injectable products? And also, some color on B2B versus any front-end presence that you have in your current markets. So some color on the, you know, overall quality of the business. Mr. Harith, Mr. Harith, can you please mute your line when you're not speaking? There's some background noise coming from your line. Yeah. So I'll pass this to Naishadh. I think, you know, he's the most qualified amongst us to talk about this. Yeah, Naishadh. No. So thanks. Thanks for speaking out. Well, to answer your questions, Swiss has a mix of various products in the basket, out of which the biggest mix is of the antibiotics what we do. In terms of, I think the next question I could not hear because of the noise, but if you can just, what about the geography? Oh, geography. So geographies, we are predominantly sorry. Yeah. So we are predominantly present in very strong presence in till now, we have very strong presence in Southeast Asia and Africa, which are growing markets and which are expected to grow much more in the near future. Although our focus is also right now on the European markets because that gives us an access to the reg markets, registrations with the non-reg country presence. And to answer your last question, which was regarding the, I think, regarding the front end, Swiss currently operates on a distributed, led model, where we are trying to be sure that if we have to go front end through teams, that's where the domestic expertise of Eris will become. That's where I think Eris's partnership or JV with us will help us pivot our growth also, help, help us to change, change the trajectory of the growth. And last but not least, although we are focusing on injectables, the same sales channels and the distributors can be used to also leverage, or, you know, front end the products, what Eris has on its own basket. Not to tell you that, I mean, to add on to that, the brand recognition of Eris products which are there in the market right now will play a very important role for us to also catapult that growth towards expanding the portfolio in these countries. Correct. Okay. Then, next one is on the acquired Biocon portfolio. So, what was there a contribution in the quarter, in 3Q, from the acquired business? And, if you can share some guidance on the expected growth from this portfolio for FY25? I think we acquired in November, now, in mid-November. Right. Yeah. So generally, you know, there is not any nothing significant in this quarter which is expected. But because we traced the secondary sales, right, I can give you a secondary feel which we have got. So we had this business which was roughly around INR 7-8 crores a month. And, so I'll tell you two things, the first and the important things. When we took this business, our gross margins were in the range of 50s, right? Now, when we have done the match and the new orders have been placed and we have negotiated and changed the product mix, we think that, you know, we can tell you clearly, but in quarter four or the first quarter next year, it would be close to 70% gross margin. With the price rise kicking in which will happen in the next year, it might move a little further. So one of the targets which we had was to correct the gross margins is in line, and we are not there for any surprise. Now, because we had people coming in with this, with these purchases, that is the reason we are seeing a strong ramp-up happening. So while primary, the sales expression is quite little, but the secondary has started to come in, we think in FY in the last quarter, we will be, you know, completely in line with what we had thought. So at least INR 24 crore-INR 28 crore of revenue will come from there. And we are expecting this to go to, you know, more on INR 10 crore-INR 12 crore next year. That's what we could fix. We could have figured out until this point of time. Okay. And my last one with your permission. You mentioned that the derma business is now tracking around INR 375 crores of annualized sales. So, you know, what would be the like-for-like basis growth that we've seen with what we've seen in this business? Because we have talked about some disruptions in the acquired brands from Glenmark and Oaknet. Just trying to understand if those brands have steadied and reached a pre-acquisition level. Mr. Ahmed, we can't hear you clearly. Can you be a bit louder, please? Yeah. I'll, you know, try that again. So the INR 375-odd crore of derma sales that we talked about, trying to understand if, you know, the acquired brands from Glenmark and Oaknet, we had some disruption in the initial quarters post the acquisition. So have we seen some stability there? Yeah. Okay. So if I get you right, you're trying to ask me what is happening to the acquisition and the technology? Mr. Ahmed? I'm sorry to interrupt. I'm sorry to interrupt. Please mute your line. Mute your line. Please go ahead, sir. Oh, you know, I was not very clear. You know, there was a lot of disturbance in the line. But what I could have made out is, he's trying to ask what has happened to the dermatology and how is it shaping up. So, we acquired both this asset in the last quarter of last financial year, if I'm not wrong. One was in China, and one the other was in March. So, Mr. Ahmed, we are quite happy with the progress it has done. You have seen the margins the way the margins have panned out. Now, on the growth side, what has happened on the growth side? So there are a couple of things which I would like to point out. These products were selling on some 3,000 stockist, and we actually got only 400 stockist out of them. So this is not a 12-month to a 12-month kind of, you know, comparison because we got it acquired in the quarter. It took us some time to get the sales back. But on the run rate basis, we are doing quite well. The good news is that we have got some beating in the tail brands. But when I talked to you about the major brands, the major thing was Onabet, Demelan, Halovate, and Sorvate. These were the four large brands which we got. All of these growths are all of the brands are growing very well. A special mention to Demelan. We think it is growing ahead 60% ahead of what we have thought. There are two, three brands which we have missed out. There is one Luliconazole which we also, which Oaknet also had. So we have lost around INR 3-4 crores there. They have taken around INR 15-18 crores of stock back this financial year, which was a change from one set of stockist to the other set of stockist. So when I put everything together, the derma business is doing quite well. And, you know, we have got a good grip on derma business. You see this derma business next year going pretty well. Okay. Thanks for taking my questions. Sorry about the bad audio from myself. Thank you. We'll take our next question from Abhishek Chauhan from Eklavya Capital Advisors. Please go ahead. Yeah. Thank you for taking the question. So, my question is, in over the next 2-3 years, what is your guidance on your mergers and acquisition strategy? Is it going to go at the same pace, or you would try to consolidate whatever you have acquired so far? So let you know, this answer is always a difficult answer. I am not in a position to say that, you know, we are done, you know, with everything. That's the reason we actually put out a slide, you know, telling you how do we think about the cash flows, how it has been in the last 5 years, and how may how should how may they pan out in the next 5, 6 years. So I will answer you a more controllable question, that what will happen to the debt? We are as of now, we want to have a hard stop at anything which is in the zone of 2, 2.2, 2.3. We would not like to exceed that. And you see, we are building that kind of a capabilities. That was one of the reasons you see the promoters also kind of, you know, putting up the cash and the way we have structured the deal. So whether we do one, one more deal, we are not sure at this point, or you know how these things are. Yes, the intent is there that if we get something good, we might as well get it. But the discipline on the EBITDA versus debt is something which we want to abide by. Yeah. Other than the debt, my other concern is that merger and acquisition Eris has so far succeeded so well is because of the discipline. I like so many things. For example, you mostly do brand-only acquisition, not people-related acquisitions. But if you go at the same fast rate, as an investor, my fear always is whether that discipline will be there or you'll flow along with the speed. No, no. Don't fear, boss. You know, there's limited fuel. You can't run out. You can't run beyond that. There's a limited fuel. And, again, I don't want to go to the past laurels that, "This we have done, this and that." You know, we know that, you know, some things have to fall in place. But look at our history for so many years now. We have been quite prudent. Well, there are a lot of guardrails within the system which will make us take prudent calls. And I can assure you that this is not, you know, there's no excitement, and there's no adrenaline which comes in from the, you know, acquisition. It's only when we think it is a prudent capital allocation policy, we think this is something which we can drive. That's the only time we get into it. I must also tell you, boss, we have said no more often than we have said yes. All right. Thank you. I think, that puts a rest to my concerns. Yeah. Thanks. Thank you. Ladies and gentlemen, to ask a question, please click on the raise hand icon available on your screen. The next question is from Prashant Nair from Ambit Capital. Please go ahead. Yeah. Hi. Good evening. A couple of questions on Swiss Parenterals. Firstly, would you need to invest anything more into the business to achieve, you know, what you want over the next, say, 3-4 years, or is the business by itself, you know, as it stands, it's currently capable of taking it forward? So I'm talking about capital investment in the business. Yeah. So I'll ask Desharth to, you know, do the final stuff. But till this point of time, we might have to put in one more plan. Correct. Which should happen in the next two years with the CapEx of some INR 40 crore or more? Between INR 40 crores-INR 60 crores. INR 40-60 crores. Desharth, you take it from there. Yeah. So, thanks, Prashant, for bringing up this question. And, well, the question has an answer as well. The whole idea to join hands, and to do this, JV or partnership was that we get, Eris gets a strong domestic injectable presence where they were not, predominantly present. And to utilize Swiss's IP or manufacturing facilities to the best available extent. Well, although Swiss will continue doing its export business, there's no restriction on that. In fact, the idea is to grow that but also help Eris to establish a domestic injectable play or brands in this case. And, I think for that, if there is a CapEx requirement, it will be somewhere within a bracket of INR 40-60-odd crores. Yeah. which will be predominantly used on capacity building and maybe a front end. But Prashant, to answer your question wholly, when we have planned for our capital, resources for the next four years, we have consistently put a INR 50 crore-INR 100 crore kind of number in, putting into the back end, which is not necessarily going in Swiss. There are a couple of things which we are, looking forward in, you know, in women's health and all those things. So side by side, keeping our back end strong is something which we think is going to be very important in the coming times. So we do keep that money. How much of that would be used, we don't have an answer now. But there's one plan which Naishadh is putting up just behind the present one. Correct. Which should be over in two years' time. Yes, yeah. And also, all the revenues, investment, etc., that accrue from Swiss Parenterals, whether it is in India or ROW, would be in the 51% held entity as in Swiss Parenterals or would there the India business be run through the Eris P&L? How do you see that being structured? Very interesting question, actually. So, two things of this, two parts of the answer. General injectables, general specialty will all be done through the Swiss. And if there is anything which is in the specialty side, that will be done by the Eris. The simple reason is we need field force. We can't put unlimited field force in Swiss. So Swiss will do the large part of the business, which is like the hospital, you know, hospital business. And Eris might do the specialty piece, for example, you know, women's health, you know, some amount of biotech here and there. So that will be done by Eris. And rest, everything which is the largest chunk would be done in Swiss. Okay. Thanks. And just one last question. Naishadh, if you could just once again elaborate on the product portfolio. I just heard that, you know, you mentioned it's largely antibiotics, but I probably missed the rest of your answer at that time. Correct. No. I'm happy to answer that. So if I have to bifurcate the portfolios, the portfolio we have, we have total 11 lines of sterile products which we manufacture. The larger chunk of sales is coming from antibiotics, but, as you know, they are pretty price competitive. The other chunk would be coming from the general injectables, where we do have specialty products but only export-focused. Now, with this JV coming into picture, we will be utilizing Eris' strength in the domestic market, in the domestic pharma market, to focus those strengths on these high-value molecules, with a very high margins on them, to go with the domestic formulation. So it will be a basket of value versus volumes. So Prashant, we'll send you the list across. We have the list of what all we are doing. Correct. We also have the list of the geographies. We'll send it along. It's a good mix of specialty and lyophilized, vial, liposomal, everything. As Desharth told, 11 lines. There's a PFS. There is oral sorry, inhaled anesthesia also. Correct. It's a very good mixture of specialty and high-end antibiotics difficult to make. That is the reason you see the margins being there from the last 4-5 years since we have been kind of looking at numbers. Correct. Yeah. Thank you. That's it from me. Thank you. Ladies and gentlemen, to ask a question, please click on the raise hand icon tab available on your toolbar or on the Q&A tab available on your screen. We have a question from Gagan Thareja from ASK Investment Managers. Please go ahead. Mr. Thareja, your line is unmuted. Please go ahead. Mr. Gagan Thareja from ASK Investment Managers, can you please unmute and go ahead with your question? There is no response from Mr. Gagan Thareja's line. I now hand the conference over to Mr. V. Krishnakumar for closing comments. Over to you, sir. Thank you. With a 14% consolidated revenue growth and 26% consolidated EBITDA growth for the first nine months of this financial year, we are on track to meet our guidance of INR 2,000 crore revenue, INR 700 crore EBITDA, and INR 410 crore of profit after tax for the year. On the back of our established specialty presence and strong cash generation, we look forward to achieving INR 5,000 crore in revenue by the financial year FY 2029. Towards this objective, we have several exciting initiatives underway. We also look forward to harness the growth opportunities that are available to us on account of our acquisition of 51% stake in Swiss Parenterals. We look forward to your support in this journey. Thank you very much, and have a good evening. Thank you. Thank you. Thank you, members of the management. Ladies and gentlemen, on behalf of Eris Lifesciences Limited, that concludes this conference. Thank you for joining us, and you may now exit the meeting.