Ladies and gentlemen, good day, and welcome to the Q4 and FY 2024 earnings conference call of Eris Lifesciences Limited. We have with us today on the call 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. Good afternoon, and welcome to our quarter four and FY 2024 business update. So just before we get into the quarter, I think this is a good time to kind of recap the journey that we have been through over the last 24 months or so. It's been nothing short of transformative as far as our business is concerned, as far as our footprint is concerned. It began with the acquisition of Oaknet in May 2022, followed by the acquisition of suite of brands from Glenmark and Dr. Reddy's later on that year. So we put together a dermatology franchise in financial year 2023. Then, in the financial year that went by, we picked up the Biocon Nephro and Derma businesses in the month of November, followed by two very pivotal and strategic deals in quarter four, which kind of go hand in hand with each other. Firstly, the Swiss Parenterals Limited acquisition and the acquisition of the Biocon Injectables business, which was announced in March and completed in April. So, a total investment of more than INR 3,500 crores in the last 24 months, a big part of which has happened in the last few months, and a very, very transformative journey. I'll articulate more about this as we go ahead. A quick update for all of you in terms of, you know, what we have started doing on the Q4 deals. Obviously, these are still early days, so we will come back to you with a detailed update post the completion of quarter one. But then also we had acquired Swiss Parenterals, which had an FY 2023 revenue of INR 280 crore, 37% EBITDA margin. The Eris equity stake in Swiss has been augmented to 70%. We kickstarted the business integration, so the Eris corporate team now oversees all business activities at Swiss. Also, this is something that we had highlighted when we shared the deal with you, that, you know, we see a lot of manufacturing synergies between the Biocon portfolio and the Swiss manufacturing capabilities. So happy to share with you that we have initiated the manufacture of Biocon injectable products at the Swiss units, and this will ramp up. Swiss has an active R&D pipeline of more than 90 products. We are in the process of strengthening go-to-market activities, including business development and regulatory. The other important initiative where we have already started work is to get the Eris Ahmedabad unit inspected by international regulatory authorities later this year. Because you might recall that we had spoken about initiating the export of oral solid dosage forms as an additional, as a completely new revenue line for the company, whereby we would leverage the manufacturing footprint at our Ahmedabad unit, and we would leverage the channel relationships of Swiss Parenterals. So the first step in that direction has been taken, where we're preparing the groundwork to get the plant inspected later this year. As far as the Biocon injectable business is concerned, we completed the acquisition in early April. It has brought power brands like Basalog, Insugen, Biomab, Canmab, Imnec, and Biopiper into our portfolio. The revenue run rate at the time of acquisition was to the tune of INR 30 crore per month. Now, this acquisition has resulted in a significant expansion of our covered market. So we see that our covered market has expanded by more than INR 15,000 crore because of this acquisition. We have added four divisions, insulin, critical care, oncology, and market access. So insulin, critical care and oncology is something that, you know, we have spoken to you before. Market access is a very interesting, you know, again, new revenue line that we've added. So market access division is basically engaged in supplying the same suite of products to various central and state government institutions. So this is again, a new revenue line that has gotten added. We have an active sales and marketing team of around 650 personnel, which includes 435 reps. So moving on. This is something that we are very excited about, you know, the kind of diversification that we were seeking in our therapeutic mix in the domestic formulations business, which is still the mainstay of the company. So if you look at March 2022 versus April 2024, on a MAT basis, roughly a two-year period, our top three therapies, which is oral anti-diabetes, cardiovascular, and VMN, accounted for 80% of our business back then. Now, the concentration of these three therapies has been reduced to 54%, after accounting for the fact that these therapies have delivered an 11% CAGR over this time period. Our emerging therapies, notably Derma, Insulins, Women's Health, CNS, Oncology, Critical Care, and Nephro, they now account for 40% of our business. So we kind of are happy with the way this has come together, and we believe that this sets a very good base for secular organic growth going forward. This is the Quarter four picture from AWACS in terms of growth versus peers. So the IPM growth for quarter four was 9.5%, and Eris growth was to the tune of 14.5%. So happy to share that Eris continues to, you know, outperform the IPM and also continue to rank among the top 10 players. Now moving on to the Quarter four update in terms of primary numbers. Domestic Branded Formulations, our flagship segment, clocked a revenue of INR 480 crores in Quarter four of this financial year. This accounted for 87% of our consolidated revenue for the quarter. In terms of Quarter four growth, the overall growth in the Branded Formulations revenue was 23%, and the organic growth in Quarter four was 15%. We expect to see a sustained 12%-14% organic growth in our Domestic Formulations revenue in FY 2025 as well. For the full financial year, Domestic Branded Formulations clocked a revenue of slightly over INR 1,900 crores. It accounted for 95% of our consolidated revenue and then implies a growth of 18% over last year. Again, we expect to see a 12%-14% organic growth in this business in the current financial year, and also happy to share that Eris MJ closed the year with INR 36 crore of revenue in its second year of operations, and an exit run rate of INR 5 crore per month. Coming to Domestic Formulations EBITDA, the quarter four EBITDA of the segment was INR 130 crore. This presents a 27% margin and a growth of 8% over Q4 of last year. There was a decline of 180 bps in Q4 gross margin due to the evolving product mix. There are new items that have been added to the portfolio, including the Biocon segment that we have picked up in November. This product mix is expected to stabilize by the first half of this year. For the full year, the EBITDA of the business segment was INR 656 crore, which represents a margin of 34% and an increase of 100 basis points over last year. This increase was driven by a couple of factors. One is, as we've already recapped for you on previous occasions, successful integration and significant margin improvement in our Derma segment from 27%-35%, and a major reduction in the EBITDA burn from Eris MJ. So it was INR 20 crore burn in FY 2023, which is at INR 8 crore burn this financial year, and we were looking to get to breakeven in quarter 4, which we are more or less there. Quarter 4 EBITDA was around -INR 1 crore. We'd like to share some clarifications on the Domestic Branded Formulations EBITDA. So starting with our reported Formulations EBITDA of INR 656 crores for the year and INR 130 crores for the quarter, there were a couple of, you know, one-time non-occurring, non-recurring items which we would like to call out. So there is a, there is a bucket of INR 21 crores, which includes a few items, you know, like donations, SAP implementation costs, and deal-related expenses. So this aggregated to INR 21 crores in Quarter four and ends for the financial year. The second factor is something that we would like to call out here, which is, you know, what we see as the excess OpEx that we've spent on the Ahmedabad plant. So basically, you know, we have spent INR 30.5 crores as operating expenses for this plant, which represents pretty much a fully loaded cost. However, the capacity utilization was less than 20%. So on a pro rata basis, we have overspent here to the tune of INR 17 crore, and this situation will get normalized by Quarter four of this year. But after adjusting for these two anomalies in the numbers, the adjusted Domestic Formulations EBITDA is INR 695 crore, which represents a margin of 36%. So I guess if there is one message that I would like to leave you with on this slide, it is that the fundamental characteristic, the fundamental margin profile of our Domestic Formulation segment is intact. It continues to be a 36% margin business. Moving to the consolidated picture for the quarter and the year. Consolidated operating revenue for the quarter was INR 551 crore. This represents a growth of 37%, and consolidated operating revenue for the year was INR 2,009 crore, which represents a growth of 19%. Post-deal closing, Swiss Parenterals clocked a revenue of INR 55 crore, which is part of Q4 consolidated numbers. Q4 EBITDA stood at INR 148 crore, with a 27% margin and 25% growth year-on-year. FY 2024 EBITDA stood at INR 675 crore, with a 34% margin and 26% growth year-on-year. This implies a margin expansion of 174 basis points. Quarter four PAT stood at around INR 80 crore, with a 30% growth year-on-year, and FY 2024 PAT stood at INR 397 crore, which implies a growth of 6%. This includes the impact of all acquisitions and non-recurring items. Adjusted EBITDA for FY 2024 was INR 713 crore on a consolidated basis. This represents a 36% margin and a 33% growth year-on-year. Adjusted profit after tax for the year was INR 432 crore, which represents a 22% margin and a 16% growth year-on-year. A little bit of clarification on the adjusted profit after tax. So it really flows through from the adjustment that we spoke about in the EBITDA a couple of slides ago. So there was an adjustment of INR 38.4 crore to the EBITDA because of non-recurring items. So this flows through to PAT as well, and the impact at the PAT level is at least INR 35.4 crore. So the consolidated PAT is INR 397 crore on a reported basis, and the Adjusted PAT is INR 432 crore. Coming to the other important metrics for the year, we report one more year of, you know, strong operating cash flow conversion. So our operating cash flow to EBITDA for the year was 72%. Earnings per share reported for the year stood at INR 29, which represents a growth of 6% year-on-year, and cash EPS, which excludes the effect of amortization, stood at INR 38, which is a growth of 14% for the year. In-house manufacturing, which is basically our Guwahati and Ahmedabad sites, accounted for around 60% of domestic branded formulations revenue this year. This is primarily on account of the evolving product store business mix. Consolidated debt on our balance sheet as of thirty-first March stood at around INR 2,700 crore. We expect that this will reduce by INR 400 crore in this financial year from internal accruals on the back of our continued healthy operating margin and strong OCF conversion. In terms of return on capital employed, you can see that it was at 34% in FY 2022, and then FY 2023 and FY 2024, the numbers are 20% and 11%, which is clearly driven by acquisitions, where the gross block impact has come into the base instantly. Amortization impact has also come in, but, you know, the earnings, the margin improvement, you know, all those things, integration, they take, they take time. Which is why when you look at the FY 2024 return on capital employed on an adjusted basis, it's a number of 19%. So this adjusted is based on full year pro forma EBIT of FY 2024 acquisitions, and it excludes the impact of M&A-related amortization. Moving on to the guidance for the current financial year. So as mentioned earlier, we reiterate an organic revenue growth guidance of 12%-14% in our domestic formulations-based business of FY 2024, and we expect to maintain a domestic formulations EBITDA margin of 36%. On Swiss Parenterals and the most recent Biocon Injectables acquisition, we will share the FY 2025 revenue and EBITDA guidance post-completion of quarter one. We are in the process of putting things together. We have good visibility of more than 20 first-in-market launches through our own R&D pipeline. When we spoke to you last time, we spoke about the benefits that are to be gained by insourcing the manufacturing of some of the Biocon products, whether it is insulins or oncology or hormones. Now, in order to achieve the insourcing, we are looking to, you know, set up these manufacturing blocks at our Ahmedabad facility, and we estimate that we'll have a CapEx of INR 70-80 crores this year on the same. In terms of key considerations for the financial year, again, we have depreciation to the tune of INR 60 crores, amortization to the tune of INR 225 crores. Interest expense, we estimate at around INR 240 crores. As articulated on numerous occasions, we continue paying cash tax at the MAT rate of 70%. We have an accumulated MAT credit of around INR 460 crore as of thirty-first March, so we will progressively leverage the accumulated MAT credit over the next few years, because of which operating cash flow is expected to be maintained at 70%-75% of EBITDA. Debt reduction continues to be a very important strategic priority for us. So the pro forma EBITDA of FY 2024, you know, of all the acquired businesses, is more than INR 850 crore. So on this basis, and looking at an outstanding debt of around INR 3,000 crore, we are at a debt-to-EBITDA ratio of 3.5x now, and our priority is to reduce this to less than 2x in the next eighteen months. Towards this, we expect INR 400 crore of repayment through internal approvals this year and INR 600 crore of repayment through internal approvals in the next financial year. By the end of next financial year, we will be at a ratio of around 1.5 times, which, which is something that we believe is a comfortable place to be in. This concludes the presentation for this quarter. Now, we move on to Q&A. Thank you very much. We will now begin the question and answer session. 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. Ladies and gentlemen, you may press the Raise Hand icon tab available on your toolbar or the QA tab available on your screen to ask a question. Thank you. A reminder to all participants, 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. The operator will announce your name when it is your turn. Thank you. The first question is from the line of Gagan Thareja from ASK, ASK Investment Managers. Please go ahead. Yeah, good evening. I hope I'm audible? Yes, sir, you're audible. You can go ahead. Okay. Yeah, so I think you put out a filing on the stock exchange indicating that you intend to do a fundraise. Can you give us some idea of the magnitude of the fundraise, and in what form do you intend to do this, and by what time? Sorry, sir, we are unable to hear you. Can you hear me? Am I audible? Yes, Mr. Gagan Thareja, may I request you to wait while- Yeah. Uh. Ma'am, we are unable to hear you. Can you unmute the line from your side? Yes, apologies. It's unmuted now. Sachin, please go ahead. Hi, Gagan. Can you hear me? Yeah. Yeah, I, I can hear you now, yeah. We intend to raise NCDs and of around INR 1 crore-INR 1,250 crores and repay the CPs which are due first week of June, second week of June. Okay. Okay. And is it also possible for you to apprise us of, you know, how the acquired brands from Reddy's and Glenmark, you know, have done for you this year? And how do you. I mean, what are your sort of strategies or thought processes to scale these businesses? And likewise, for, you know, the other acquired entities also, if you could apprise us of what are your aspirations, perhaps if not on a short one-year frame, but perhaps on a three-year frame, and also give us your thoughts on the profitability matrices of these businesses going ahead. Yeah. Hi, Gagan, Amit here. So, Gagan, look, dermatology is clearly emerging as our fourth largest therapy now. So, you know, typically we were strong in diabetes, cardiovascular, and VMN. These were three categories which used to be very dominant. Now, we are looking at dermatology. It's now become our fourth largest therapy. And if I'm not wrong, we are already featuring in the top 10 in dermatology. You know, there is some little bit noise in the data of the AWACS, AWACS data, which happens when you kind of, you know, buy brands from outside. Now, I am having a very good traction between dermatology and cosmetology, we are still doing better in dermatology. So Glenmark brand were largely on, on dermatology, and that is one area where we are seeing a high teen growth. The cosmetology piece hasn't done as well as the derma piece, but I think we are learning the ropes there. Dermatology is a very large business between dermatology, cosmetology, the clinical dermatology. So that is panning out good for us. We aspire to be one of the top five in dermatology. So it's a, it's a big ask, not a very it's a decent ask, but we think we have the wherewithal to achieve that. Because inside, if you look at the major brands, our major brands are showing much bigger growth than the overall growth of the business. So that gives me a lot of confidence. So I can tell you for sure that dermatology will be one of our large. Is it possible to give us, you know, the numbers for Oaknet, Glenmark acquired and Reddy's acquired brands for FY 2024, both top line and margins, possible? Look, margins we know. Margins, Oaknet margins are almost at the company level margins. I can safely tell you the margins at Eris are at around 35%. Now, if you look at the, if you look at the AWACS data, it is all over the place. So that is reporting a triple-digit kind of approach. Am I right? Yes. In most of the brands. So it, you know, it went down and then it came up. But what I can tell you, we see a healthy teen, higher teen growth in the next two years when it comes to our large brands. So for the primary sales, I mean, secondary sales might, as you say, be all over the place, but for the primary sales that, you know, you would report in your own income statement, what would be- So then, hi. So all these pieces are now part of the DBF business, and disclosing each brand or each therapy separately is not a part of our guidance. So you'll have to go by the secondary numbers as far as each brand or each therapy is concerned. All right. And for the, you know, the MJ Biopharm piece, you know, how is that working out in terms of, you know, monthly sales numbers? And are you at a break even on that business now, or what are the margins looking like there? Yeah, Gagan, we told you in the present, in the presentation, that quarter four, we are almost breaking even. The loss was limited to INR 1 crore for a quarter. So we are quite-- we are up there now. And the run rate, we are run rating at INR 60 crores. But you will have to wait for this business because we are having two businesses in insulin now. So there's one large piece which has come from Biocon, and then there is an MJ piece. So, I will tell you after the first quarter, how do we, you know, manage both these brands? Right now, we are getting more managing both the brands within the, within the company. But you need to give me one, one quarter to make it more clear. Largely, the large portion of the growth will be driven by the MJ brands, because... Sorry, the Biocon brands, because they are very large sized brands. Basalog being INR 100 crore and Insugen being INR 100 crore. Large availability across the country, so those brands have a lot of juice to it. Also, perhaps clarify, I think Mankind also has an in-licensing arrangement with Biocon for glargine, if I understand it correctly. And obviously you will be up against, you know, their fairly comprehensive distribution. In addition to that, you know, my understanding is that with dapagliflozin and gliptin and all, you know, now becoming generic, price points are lower and penetration is much higher volume-wise, and they tend to sort of delay the onset of insulin usage. So between these two, do you see, you know, these two in some way, sort of, you know, the challenges that you might have to face in growing your own insulin business? So Gagan, look, there is no science which says that, you know, these products will replace insulin at any given point of time. Secondly, insulin education in India has been very, very poor when compared to any of the Western, the adoption has been very, very poor. So even when we talk about, you know, developed countries like U.S., where the products have been available for pretty long time, we really don't see a challenge of insulin. So insulin market in India is still very, very underpenetrated. And when you look at the science, it actually doesn't at any point of time say that these OHAs could substitute for insulin. So we don't find the insulin market, you know, going down at any point of time. Yeah, and on, you know, from a competitive standpoint, how do you see the market with Mankind also entering this business? Look, Gagan, we want to believe we are good at diabetes and we are good at insulin. Insulin is a little bit more, more concentrated form in diabetes. So we believe we are good. And up till this point of time, our two years of journey have actually been quite reasonably very good. So let's see from where it goes from here. Okay, thanks. I'll get back in the queue. Thank you. Thank you. ` you. A reminder to all participants, 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. The operator will announce your name when it is your turn. Thank you. The next question is from the line of Neelam Punjabi from Perpetuity. Please go ahead. Hi, am I audible? Yes, ma'am. Yes. May I request you to use your handset, please? Yes, sure. Is this better? Yes, ma'am. Please go ahead. Yeah. So thanks for the opportunity. My first question is on the Swiss Parenterals portfolio. So have we launched anything from that portfolio in our domestic population segment? Yeah, we have already. So, the idea was when we bought the critical care piece from Biocon, we wanted that to be shifted first to, Swiss and then launch new products. So I think that cycle has started, and we believe by the end of this quarter, large percentage, almost 60% of that portfolio should be manufactured with Swiss, and there should be 4-5 new brand which should be launched, manufactured by Swiss. So that plan is on track. Got it. And, secondly, my question was on the net debt figure. So, INR 2,700 crore by 31st March 2024, that you all mentioned, that includes the potential payout for the Biocon acquisition, right? Yeah. Yeah. So just to clarify, the Biocon acquisition payout is completely factored into that. And, you know, the INR 2,700 crore was as of March 31st, but for all practical purposes, we take the debt figure at INR 3,000 crore, because the Swiss Parenterals augmentation of our estate from 51% to 70%, that resulted in the debt figure going up to INR 3,000 crore. But that happened in the month of April. So while March 31st is INR 2,700 crore, our starting point for the debt is INR 3,000 crore. And this includes everything. Nothing has been left out. Oh, got it. That's all from my end. Thank you. Thank you. Thank you. A reminder to all participants, you may click on the Raise Hand icon tab available on your toolbar, or on the QA tab available on your screen. 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. The next question is from the line of Harit Ahamed from Avendus Spark. Please go ahead. Hi, hope I'm audible. Yes. Yeah. Yeah. Thanks for the opportunity. In one of the slides, you had called out INR 21 crore non-recurring item in Q4. So, I missed the details around that. Can you clarify that? Harit, is your question about the INR 21 crore non-recurring items? Yes. Yes. Yeah. As articulated earlier, this was a combination of factors, including, you know, SAP implementation cost, which is a one-time expense. The deal related expense for the deals that we consummated in quarter four, and, you know, some donation, which is again of a one-time nature. Okay, understood. And, you mentioned that the organic growth for the brand formulations business for the quarter is around 15%. So, the adjustment that you've done to arrive at this would be the sales from Swiss Parenterals and the Derma Nephro business from Biocon. Is that the correct understanding? Yeah, yeah. This is on a like-to-like basis. So, you know, whatever was part of the business in quarter four of last year, that forms the base. So clearly, there is no Swiss Parenterals, there is no Biocon, because these businesses were not with us in quarter four of last year. In fact, even the Dr. Reddy's is not part of this. This only includes what was there with us in Q four of last year. Yeah. Okay. So, even if I adjust for the you know, the one-off, there's been a non-recurring item that you called out of INR 21 crore. There's been a decline sequentially in our margins for Q4. ... versus the first three quarters in FY24. So, how should we think about this decline sequentially? So I think if you look at the quarter-on-quarter growth, then I think the quarter four of last year versus quarter four of this year, the EBITDA margin growth is significantly good, right? The growth is more than 30%. So if you look at the, you know, legacy pattern of the data of the last two years also- Yeah. You will see that quarter four is a bit of a smallish quarter for the domestic formulations business. Yeah. Quarter two and quarter three are our peak quarters. So most of the year is actually made in these quarters. So rather than looking at the Q4 margin on a sequential quarter basis, I would ask you to look at it on a year-on-year basis, which is more representative. Right. Okay, understood. That's all from my side. Thanks for taking me. Thank you. A reminder to all participants: to ask a question, please click on the Raise Hand icon available on your toolbar or on the QA tab available on your screen. The next question is from the line of Rahul Jeewani from IIFL Securities. Please go ahead. Yeah. Hi, sir. Hope I am audible. Yes, Rahul. Yeah. So, sir, on this organic growth of 15%, which we called out for quarter four, can you similarly call out the organic growth for the full fiscal year 2024? I think it would be to the tune of, you know, 9%-10%, somewhere in that range. Okay, sure. We have started seeing some sort of a pickup happening in the chronic segment recently, with growth pickup in both cardiac and diabetes, which is where we seem to have benefited as far as our core organic growth during the quarter is concerned. So do you think that this momentum would sustain going into FY 2025 as well, and that gives you confidence to deliver this 12%-14% organic growth going forward? So, Rahul, I mean, what you are saying is right, but also remember what happens when, you know, bigger brands sit on, the portfolio. So you don't actually integrate the bigger brands. There is some loss which happens when you don't get people, then there is some loss which happens at the smaller brand level also. So for instance, you know, for dermatology, if the same division has got a large INR 30-INR 40 crore brand, then what happens? INR 3, INR 5, INR 6 crore brand starts getting, you know, it's, there's a little pressure on promotion there. From P1, P2, they get shifted to P4, P5. So while what you are saying at a larger level is right, but what is playing out is the time which has, you know, the time which we have spent and the promotion grid which gets changed and then gets stabilized. So two factors together, I will give the second factor a little more weightage, but this is how it plays out, and that is why you are seeing the whole growth coming back. Sure, sir. And on this debt reduction target of INR 400 crore and INR 600 crore for the next two years, what would be the key variables to track for the debt reduction which you are planning? So, Rahul, I think it's starting with EBITDA, operating cash conversion, which we are, you know, reasonably confident will be in the 70%-75% range. Right. So then after that, we have called out a CapEx of INR 70-80 crores per annum, and we have said this year, INR 240 crores of the interest charge. So whatever is left after that goes towards debt repayment. So these are the key variables. So nothing really outside- Sure. Sure, and this INR 70 crore-INR 80 crore CapEx, which we are targeting for FY 25, then ideally, this number should come down next year, given that most of our capacity expansion plans would largely be over. So it all depends on how the next three units pan out, because we, we told you that we want to take the Biocon injectables portfolio in-house, which has multiple components. One component is general injectables, which has already gone into Swiss. Then you have insulins, which is a specialized piece. You have oncology, then we have some hormones. So in order to bring these in-house, we have to create capacity in Ahmedabad. So these are all units which require containment, and, and, they are kind of different units, right? So that is why we called out a CapEx in 2025 and 2026. So that is all that is there on the horizon for now. Rahul, if you look at the wheel, the therapy mix, while the newer therapy looks little smaller at this point of time, but if you look at the order of, the portfolio, it is actually, there is a lot of evolution happening there. So insulins, nephrology, cancer, these are three large markets, and these three are the highest growing markets also. Not insulin, say, cancer, oncology is growing by 17%-18%, and nephrology has also been growing at that level. So if you look at the whole wheel and you look at the newer addition, the newer addition, also the immunology piece, which we put in dermatology, but that is where the lifts are kind of taking up, and we are seeing almost 100% growth in that category. So it makes, it makes a lot of sense for us to kind of, you know, put these things together. Because the delta which you achieve by getting, say, a Glimepiride Metformin from an, a third party to in-house, is very small when compared to these products. So we would like to believe that these are therapies which will, which will be, which will become bigger, which will always have some amount of, you know, not everybody will be able to enter, some entry barrier. And these are the therapies which will become very large. So our manufacturing plan, as I told you in the last years also, that we are now becoming a little more product company. So you will see the investment in the production keep on coming here and there. Sure, sir. Sir, last question from my end before I join back the queue. Can you talk about your rep expansion plans as far as the organic business is concerned, and what is your current productivity on the organic business? The productivity at this point of time, without Biocon, is 5.2-5.3, right? Yes. When we integrate everything, it will grow, it will go closer to six, because, around the larger, these oncology, you know, these, these, portfolio generally have a very high, productivity. We have no plan in organic addition at this point of time, because almost 600 people have come in in the last year. So we must integrate them and, get the productivity up. So I don't, see any expansion, significant expansion, even in the organic space. Okay, sure, sir. Thank you. That's it from my side. Thank you. A reminder to participants: to ask a question, please click on the Raise Hand tab available on your toolbar or on the Q&A tab available on your screen. Thank you. The next question is from the line of Prashant Nair from Ambit Capital. Please go ahead. Yeah, hi. So two questions. Firstly, so a couple of quarters back, you had, you know, outlined a few, you know, products that you were working on internally, as part of your R&D program. So can you provide an update on how many of those you have launched, in this fiscal? And what is the pipeline, for the next year? Yeah. So we, this fiscal, we've launched two products. Which we launched them in February, I think, February, March. One of them is a combination of Glipizide with Sitagliptin. We are waiting for the third, you know, triple drug approval, which basically we need to do one more BE for that, so that is in the process. We have got another marketing authorization for a product which is Dapagliflozin and Metoprolol. We feel this is a very good drug for post MI, and for patient, diabetic patient with CKD. So that is one thing which the MA has already come. We are waiting for the final licenses. And the next product, which is in line, is Dapagliflozin with Bisoprolol. That goes more into the heart failure. So these three are something which we think we should be able to launch in Q1. And then the Q2, Q2 is little silent. Q3 will then, you know, pick up very well. Okay, thank you. And the second question is, so now you've had some time in the market with the diabetes products that have gone off patent, so Vilda, Dapa, Sitagliptin, Linagliptin, also Sacubitril Valsartan. So could you provide a sense of where you are in these products currently in terms of ranking, so after this period of time in the market? I won't remember all of them, so we will have to come back to you. But, you know, the largest market has become triple drug market, Sitagliptin, sorry, Dapa with Sita. That has become the largest market. And there, I think that we rank number three and number four, respectively, for double drug and triple drug. Sacubitril Valsartan, Zayo, I'm not happy with the way we have performed. We are kind of, you know, ramping it up. That's something where we have kind of, you know, not done well. But diabetes continue to do well. What we have done, you know, not exceptionally, but quite well, is on the Linagliptin part. I think Linagliptin, after the innovators, we are right up there. So Linagliptin has worked us very well. Dapa combinations have worked with, worked very well for us. Sita, we didn't have a great start, but it picked up in between. I think we are now number three or number four. And Vilda, we, yeah, we continue to be number one in the generic space. So, that's how it's kind of stacked up. But we'll be happy to provide you the latest numbers. Thank you, sir. We have not presented that data, but last year we ranked number two in the overall value of new product launch. In March, April data, in March data, we were launched, we were ranked number 2 in overall new products launched. Okay. Great. Yeah, so that... Thanks. Thanks, Amit. So that's it from me. I am done. Thank you. Thank you, sir. Ladies and gentlemen, a reminder to all participants to ask a question, please click on the Raise an Icon tab available on your toolbar, or on the QA tab available on your screen. Thank you. Christine, if there are no more questions, can we close now? Yes, ma'am. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to Mr. V. Krishnakumar for closing comments. Over to you, sir. In closing, we recorded a consolidated operating revenue of INR 2,009 crore in the financial year 2024. Our consolidated EBITDA and PAT for the year were in line after adjusting for one-off and exceptional items. We clocked a 15% organic growth in our domestic branded formulations business in quarter four. With a significantly diversified therapy mix, we are well positioned to deliver a domestic formulations organic growth of 12%-15% in FY 2025 as well. Deleveraging our balance sheet continues to be a priority, and we expect to get to a debt to EBITDA ratio of less than 2x by the end of September 2025, starting with a repayment of INR 400 crore from internal accruals this financial year. Thank you all, and have a good evening. Thank you very much, sir. 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.