Good morning, ladies and gentlemen. Welcome to the Q4 FY22 earnings conference call of Glenmark Pharmaceuticals Limited. 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. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ravi Agrawal, Head of Investor Relations for Glenmark Pharmaceuticals Limited. Thank you, and over to you, sir. Thank you, moderator. Good morning, everyone, and a warm welcome to the Q4 FY22 results conference call of Glenmark Pharmaceuticals Limited. Before we start the call, a review of operations of the company for the quarter and year ended March 31, 2022. For the fourth quarter of FY22, Glenmark's consolidated revenue was at INR 35.1 million, recording an increase of 5.6% year-on-year. For the year ended March 31, 2022, Glenmark's consolidated revenue was at INR 123,049 million, recording an increase of 12.4% year-on-year. Before we get into the detailed discussions on the businesses, the following were the key highlights of the year. Number one, Glenmark listed its fully owned API subsidiary, Glenmark Lifesciences Limited on the Indian exchanges. The IPO was consisted of a fresh issue of INR 10.6 billion, an offer for sale of up to 6.3 million shares by the company was subscribed by over 44 times. Number two, Glenmark was listed in the prestigious Dow Jones Sustainability Index for the fourth consecutive year. The company is among only 15 companies from India to be listed on the DJSI Emerging Markets Index this year. Also, Glenmark was the first domestic pharma company to raise sustainability-linked loans by raising $228 million in SLL during the year. A detailed ESG profile of the company is available under the investor section on our website. Number three, in third quarter FY 2022, Ichnos entered into an exclusive licensing agreement with Almirall S.A. for the IL-1RAP antagonist ISB 880. Under the agreement, Almirall is granted global rights to develop and commercialize this monoclonal antibody for autoimmune diseases. Ichnos received an upfront payment of EUR 20.8 million and will receive additional development and commercial milestone payments and tiered royalties based upon future global sales. As per Number four, as per IQVIA in April 2021, FabiFlu became the highest selling drug in Indian pharma market amongst all therapies. The success of FabiFlu is a testament to the end-to-end capabilities of Glenmark to offer patients quality medicines with affordable access. Number five, Glenmark was selected for the Production Linked Incentive, PLI scheme, aimed at improving India's manufacturing capabilities and enhancing exports. Glenmark is one of 11 companies under group A selected for the scheme. Number six, Europe business achieved significant milestones of $200 million annual revenue for the first time. Number seven, Glenmark had several success in its core respiratory franchise during the year. The company received US FDA approval for its NDA product Ryaltris in the US and marketing approval in all 17 markets across EU and UK during the year. Onto the businesses, first, the India business. Sales from the formulation business in India for the fourth quarter FY22 was at INR 8,847 million as against INR 8,238 million in the previous corresponding quarter, recording growth of 7.4% year-on-year. The India business contribution was at 29% of the total revenues in Q4. As per January-March 2022 IQVIA data, the non-COVID based portfolio grew 15.5% as compared to the non-COVID IPM growth of 10.6% during the quarter. The India business continues to significantly outperform industry growth rates, continuing the trend of the past several years. As per IQVIA data, Glenmark was one of the fastest growing companies in the industry among the top 20 players on a March 2022 basis, with growth of 23.8% as compared to IPM growth of 17.4%. For the year, Glenmark India formulation business is ranked 13, up one rank from last year. Its market share has increased to 2.4% as compared to 2.34% last year. In terms of market share, Glenmark India business further strengthened its position in core therapeutic areas such as cardiac and respiratory. As per IQVIA in March 2022, the cardiac segment market share increased to 4.96% as compared to 4.76% last year. The respiratory segment market share increased to 5.43% as compared to 4.96% last year. The company was ranked second in derma, fourth in respi, and sixth in cardiac segment during the year. The India formulation business achieved several important milestones during the financial year. As per IQVIA MAT December 2022, FabiFlu was the sixth largest brand across all brands in India during the period. Ascoril D Plus became the tenth brand of Glenmark to enter the IPM 300 brand league. The company now has 10 brands in the top IPM 300 brands in the country, up from six brands last year. The company launched 7 new products during the quarter and 31 products during the year. Amongst key launches during the quarter, the company launched a novel Zita Plus Pio, which contains Teneligliptin 20 mg, Pioglitazone 15 mg to be taken once a day, and it's the first of its kind in India, offering a world-class and affordable treatment option to adult diabetic patients. Glenmark's consumer care business, GCC business, INR 619 million in the fourth quarter and INR 1,790 million in FY 2022, with secondary sales growth of 23.4% in Q4 and 12.6% year-on-year in FY 2022 respectively. This growth was led by new product launches, especially Candid cream, where secondary sales grew 30% year-on-year annually, while last year recorded secondary sales growth of 95% year-on-year. Candid Powder maintained its dominant market leadership status with a market share of 60% in the current financial year. The company also launched Candid Quick Heat Powder during the quarter. Coming to North America. North America registered revenue from the sale of finished dosage formulations of INR 7,378 million, which is $98.2 million in Q4 FY 2022, as against revenues of INR 8,012 million, which is $109.8 million for the previous corresponding quarter, recording a de-growth of 7.9% year-on-year. The North America business contributed 24% of the total revenues in Q4 FY 2022 as compared to 28% in Q4 FY 2021. In FY 2022, Glenmark was granted approval of nine ANDAs comprised of seven final approvals and two tentative approvals. Additionally, Glenmark was granted a second tentative approval on a prior-approved supplement for the 0.25 mg strength of Singulair capsules. Notable approvals included lacosamide tablets, clindamycin phosphate foam, and theophylline extended-release tablets. The company filed a total of 19 ANDA applications with the US FDA in FY 2022 and plans to file 14-15 ANDAs in FY 2023. Glenmark completed the successful launch of 10 new products during FY 2022, consisting of a mix of semi-solid preparations, delayed and immediate-release oral solids. Notable launches included lacosamide tablets and rifamycin tablets, where Glenmark was one of the first generics available for launch. Glenmark filed NDS applications with Health Canada this quarter. Glenmark's marketing portfolio through March 31, 2022 consists of 174 generic products approved for distribution in the US market. The company currently has 46 applications pending in various stages of the approval process with the FDA, of which 20 are Para IV applications. Glenmark's Europe operations record revenue for Q4 FY22 was at INR 4,968 million, as against INR 4,223 million, recording growth of 17.6% year-on-year and 30.5% quarter-on-quarter. The Europe business 2% of the total revenue in Q4 FY22 as compared to 15% in Q4 FY21. The company witnessed healthy growth in both its key markets of Western Europe and Central Eastern Europe during the quarter. With the continued easing of COVID restrictions, growth in Western Europe was strong, led by double-digit growth in key markets like Netherlands, Spain, and the Nordic countries. The Central and Eastern European region maintained its strong growth trajectory especially in markets like Poland. Among the key launches, the company launched 4 products in Germany, 3 in UK, and 2 products in Czech Republic respectively. Slovenia and Germany launched one product each during the quarter. Glenmark has a comprehensive plan to grow its European business going ahead, including geographical expansion in new markets and expansion of its product portfolio to leverage launches in key therapeutic segments like respiratory and dermatology. Talking about the ROW, which consists of Asia, MEA, LATAM, and CIS region. For Q4 FY 2022, revenue from ROW was at INR 5,479 million as against INR 4,641 million for the previous corresponding quarter, recording a growth of 18.1% year-on-year. ROW business contributed 18% of the total revenue in Q4 FY 2022 as compared to 16% in Q4 FY 2021. The company witnessed healthy growth in base business in the region across all its key geographical segments. As for IQVIA January-March 2022, secondary sales grew 31% year-on-year in value terms in Russia. The company recently received approval for Ambroxol Solution, and the overall response to Viatis and Viatis Momo has been very encouraging in the market. The company has very strategic initiatives to strengthen its respiratory franchise in the region going ahead. Secondary sales in Asia grew 53% year-on-year, led by positive momentum in key markets like Vietnam, Malaysia, and Philippines. The company successfully launched FabiSpray in Singapore and Hong Kong in this quarter under the brand name VirX, and the company has plans to launch in multiple markets in the region in the coming financial year. The Middle East and Africa region recorded primary sales growth of 13% year-on-year during the quarter, with positive growth across major MEA markets like Kenya, South Africa, and Saudi Arabia. The company expects the momentum to continue in FY 2023 as markets are witnessing signs of recovery due to the easing of lockdown measures. In LATAM, while the company recorded positive growth momentum in markets like Peru, Ecuador, and Colombia during the quarter, the overall business has been impacted by Brazil, where the market remains challenging for the company due to the pandemic. The company is witnessing signs of recovery and expects positive momentum in the market going ahead. Before we discuss, we'd like to share some color on our various initiatives in the respiratory segment, where the company has laid out a clear strategic roadmap to create global scale. Ryaltris is our innovative branded nasal spray, where we are creating our first global brand. Glenmark received NDA approval from the FDA in FY 2022 and expects to launch the product in the US in FY 2023. Similarly, we received marketing approval for all EU markets and U.K. in FY 2022, and have launched Ryaltris in U.K., Czech Republic, Poland, Italy, and plan to launch in several markets in FY 2023, including Belgium, Ireland, and Nordic countries. Similarly, in ROW markets, RYALTRIS has been launched in Russia, Australia, South Africa, Ukraine, Uzbekistan, Philippines, Peru, Ecuador, Namibia, and Botswana. We are awaiting regulatory approval in several markets, including Brazil, Malaysia, South Korea, Cambodia in FY 2023. Apart from RYALTRIS, the company plans to file at least 1-2 filings in FY 2023 in Europe and leverage its existing branded portfolio of Soprobec, which is beclometasone MDI, Salmex, which is salmeterol and fluticasone DPI, Tiogiva, which is tiotropium DPI, and RYALTRIS to grow the European respiratory franchise. In addition, in the US, the company recently completed a pivotal bio study on proposed pMDI and initiated clinical trials in 2,634 patients, with expected filing in CY 2023. We also plan to file one more product in CY 2023 in the US. Coming to our innovation R&D pipeline, GBR 310. Glenmark has announced successful phase 1 results for GBR 310 that suggest similarity in pharmacokinetic, pharmacodynamic, safety, and immunogenicity profiles between GBR 310 and the reference product omalizumab, marketed in the US under the brand name Xolair. Glenmark is in discussions with potential partners to out-license the product. GRC 39815 is currently under phase 1 clinical development in the US, with phase 1 multiple ascending dose studies planned in H1 FY 2023. In GRC 17536, the phase 2b study was initiated in Q2 FY22, and is currently ongoing in India with 238 patients randomized out of total 472 patient period, with interim data for futility analysis expected by Q2 FY23. GLP toxicology studies for metabolite qualification were completed in Q3 FY22. The company plans to hold discussions with the FDA to get feedback on the non-clinical package to support the clinical development up to NDA filing this year. GRC 54276. IND enabling studies were completed with a phase 1 submission to the DCGI in Q4 FY22. The company has recently received approval for initiation of phase 1. Patient visits are planned from Q1 FY23. Glenmark Life Sciences. Revenue from operations including captive sales was INR 5,140.6 million as against INR 4,671.6 million, growing at 10% year-on-year for Q4 FY22, and INR 21,232.1 million for FY22, a growth of 12.6%. EBITDA was at INR 1,473.1 million for Q4 FY22, with margins of 28.7%, and INR 6,307.6 million for FY22, with margins at 29.7%. The external sales of Glenmark Life Sciences were INR 3,383 million, as against INR 3,311 million in Q4 FY21. The company is in the process of elevating greenfield and brownfield capacity expansion projects to support strategic growth levers. For further updates on the organization, please log on to www.glenmarklifesciences.com. Ichnos. Glenmark has invested INR 1,640 million, which is $21.9 million, in the first quarter of financial year as compared to INR 1,880 million, which is $26 million, in Q4 FY 2021. Thus, in FY 2022, Glenmark invested INR 6,627 million, which is $89.4 million, as compared to INR 7,570 million, which is $102.3 million, in FY 2021. For further updates on the pipeline and the organization, please log on to www.ichnossciences.com. The pipeline update for the first quarter is published on this site. Key objectives for FY 2023. We expect revenue growth of 6%-8% during the year. We expect to sustain EBITDA margins performance at similar levels of FY 2022. We expect CapEx of up to $ 7 billion-$8 billion for the year. We expect to close one to two out-licensing agreements in the innovation pipeline. The strategic priority to enhance free cash generation for further debt reduction will continue. Some notes on the results, there is a COVID-related inventory provision of INR 38.8 crore in Q4 FY 2022. There is an additional INR 80-90 crore of COVID-related products in the trade channels, which we will review in the coming quarters. Forex gains for the quarter was at INR 92 crore and INR 88 crore in FY 2022, which is recorded in other income. Gross debt for the period ending 31 March 2022 was at INR 3,670 crores as compared to INR 4,687 crores as on 31 March 2021, a reduction of INR 1,017 crores. Net debt for the period ending 31 March 2022 was at INR 2,260 crores as compared to INR 3,549 crores as on 31 March 2021. The total net debt reduction was at INR 1,289 crores. Inventories for the period end 31 March 2022 was at INR 2,500 crores as compared to INR 2,377 crores as on 31 March 2021. Receivables for the period ending 31st March 2022 was at INR 3,101 crores as compared to INR 2,572 crores as on 31st March 2021. Payables for the period ending 31st March 2022 was at INR 2,289 crores as compared to INR 2,238 crores as on 31st March 2021. Thus, net working capital for the company increased by INR 701 crores in FY 2022. The total asset addition was at INR 292 crores in the quarter and INR 790 crores in FY 2022. Of this, the tangible asset addition for the quarter was at INR 235 crores and INR 612 crores in FY 2022. Total R&D expenditure for the fourth quarter was INR 323 crores, which was 10.7% of net sales for the quarter, and INR 1,239 crores for FY22, which is 10.1% of net sales. With this, I would like to introduce the management of Glenmark on the call. We have Mr. Glenn Saldanha, Chairman and Managing Director, and also Mr. V.S. Mani, Executive Director and Global CFO. I would also like to introduce Brendan O'Grady, who will be joining the company as the Chief Executive Officer, Global Formulations Business, with effect from 10th June 2022. Brendan will lead the commercial business unit for GPL and provide strategy and leadership for bringing greater focus and alignment across all regions and therapeutic areas. Brendan comes with over three decades of rich experience in the pharmaceutical industry, spread across both generic and specialty segments, where he has successfully led and transformed businesses for growth across multiple geographies globally. In his last engagement prior to Glenmark, Brendan was the Chief Growth and Commercial Officer for Amgen, wherein he provided strategic leadership to Amgen's global business operations. Prior to that, he was associated with Teva as the President and CEO of Teva USA and EVP North America Commercial. Brendan spent over two decades at Teva, during which he was instrumental in stabilizing and growing the North American business, revitalizing the global specialty strategy, and making significant contributions to market access strategies, brand acquisitions and integration. He also has significant and successful stints with Sanofi and S.C. Johnson & Son at the beginning of his career. Robert Crockart, Chief Commercial Officer, has decided to pursue opportunities outside Glenmark. We wish to thank him for his valuable contributions to the organization during his tenure and wishing the best for his future endeavors. I would request Brendan to share a few words. Thank you and good morning. As you know, my name is Brendan O'Grady. I'm very excited to join Glenmark on June 10th and bring my nearly three decades of experience to the Glenmark team. My purpose this morning is to just really introduce myself and say hello, and just let you all know that I look forward to speaking with you more on future quarterly calls. Thank you, and really looking forward to joining the team. Yeah. Thank you, Brendan. With this, we'd like to open the floor for Q&A. Over to you, moderator. Thank you. Ladies and gentlemen, we will now begin with the question and answer session. Anyone wishing to ask a question may please press star and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is on the line of Damayanti Kerai from HSBC Securities and Capital Markets (India) Private Limited. Please go ahead. Hi, thank you for the opportunity, and good morning to all. My first question is, in, fourth quarter exception items of around INR 825 million, you mentioned it's related to some product recalls and remediation costs of Monroe. Can you update us, like, what is happening at Monroe? Like, why do we need to carry out remediation, and what kind of, sales pickup we are expecting from that facility? Because, I understand it's one of the key driver for our US sales going ahead. Just to give you a quick update on Glenmark's US business. We currently have five FDA-approved manufacturing facilities, right, formulation facilities that supply the U.S., Monroe is one of them. As regards the Monroe facility, as you remember, we had a recall, a voluntary recall till the middle of around August of last year. Since then we've been remediating the facilities. We haven't supplied product in Q3 and Q4 in the market. A lot of these costs are related to the recall expenses and the remediation costs. You're probably also aware that we recently had an FDA inspection and we had 17 observations that came out of Monroe. Basically we're confident of addressing some of these observations, and post that we will start commercializing product from Monroe. It's a new facility. Okay. Right now, no supplies and you are working to resolve the issues which are raised by the US FDA, right? Once these are resolved, supplies will start and normalize. That's correct. My second question is again on the US business. How is the pricing growth environment there right now? Are we seeing some sign of improvement or it's same as what we saw in the previous quarter? How we should look at this part of the business in next few quarters? I think the U.S. pricing environment continues to stay challenging, right? I mean, we are still. We continue to see, you know, around high single-digit price erosion in the U.S. We believe that that will continue into next year. Okay. My last question is, during the quarter, we see especially high amount of other income. Is there any one-off, which is recorded in this number? Yeah. The other income basically has an exchange gain, which we have just told, INR 92 crores. That's the only reason there. Okay. Only exchange gain is the exception. Okay, sir. I'll get back with you. Thanks. Thank you. A reminder to the participants, anyone wishing to ask a question, may please press star and one. The next question is from the line of Saion Mukherjee from Nomura. Please go ahead. Good morning. Mani, can you share what is the total cost that you have incurred in the P&L from the Monroe side in fiscal 2022, and how much will that be in fiscal 2023? Yeah. Saion, obviously, we spent about INR 30 million in Monroe last year, out of which about INR 10 million hits the P&L. Going forward, current year at least it will be lower because we'll be some part of the year in the remediating mode. I would expect it to go lower in the current year. Okay. INR 10 million was the P&L impact on Monroe? Yeah, P&L impact. Okay. The question on Monroe again, I mean, it sort of had not a great start. I mean, we had to recall product and not producing anything there. The whole idea I thought was that, to have a facility, a new facility which kind of, you can ensure compliance and execution. What went wrong there in your view? And, what are your thoughts now given that, it may take long to sort of resolve these issues? Saion, running a facility in the U.S. has been a struggle, right? For most of the Indian manufacturers, right? In fact, if you see in the last quarter, almost four of our peer companies ended up closing down their facilities in the U.S., right? It's been a struggle. We still believe that we are confident that we'll be able to remediate the issues that we faced at Monroe. Hopefully this year, around the Q4 of this year, we should start supplying product back to the market. I mean, that's where we are going with it. It's been a challenge. Glenn, I mean, why should that be a challenge? I mean, what are the issues that, you know, are facing the US space versus, let's say in India, and especially this is a very new facility without any legacy. I mean, I can't give you a lot of details, Saion, but I mean, running a facility in the U.S. is not an easy task. I mean, even the likes of Teva, you must have seen recently, had to shut down their Irvine facility, if I'm not mistaken. It's never easy. Manish, this is a question on the cash flow statement. There is an unrealized foreign exchange gain that you booked, INR 227 crore. Now, this number is higher than what you've disclosed in the P&L for the year, which is around INR 88 crore. This has been a gain for the last five years. What kind of gain is this that you're booking in the P&L, which is not leading to cash flows? Saion, obviously when at the end of the year, there is your overall your receivables, your payables or any other kind of loans given, et cetera, all are restated. Obviously some part of that, I mean, finds its way to the P&L. Broadly, I mean, this is just a reconciliation to the cash. Okay? When you do that, you'll obviously have some element of profit in some of these which are not yet realized. That is what is shown. In the coming year, when you realize the money, it automatically gets adjusted in that. This is a very normal entry in most companies. Every company you'd find this. Okay. Thanks. Thank you. The next question is from the line of Shyam Srinivasan from Goldman Sachs. Please go ahead. Yeah, good morning, and thank you for taking my question. Just the first one on the guidance. I'm just looking at the slide 21, revenue growth of 6%-8% and similar EBITDA. Revenue growth we have done about, like 12.5% this year. What's dragging us down? Is it the fourth quarter run rate which has been slower? Which geographies you think will kind of lead where you think there is still pressure? I think, Shyam, if you strip out the COVID drug sales that we had in this year, our revenue growth is double digits, right? It's we still believe that, even on a consistent basis, right, if you strip out the COVID drug sales that we had this year and last year, we're growing double digits, right? Despite the U.S. being slower, right, than the rest of the geographies. It just tells you the momentum that we have in the business. We think we will sustain that for the coming year. We have great product launches. RYALTRIS will be a big contributor to the coming year, right, for us. I think the 6%-8% is because of the high base of COVID drugs that we have in this year. If you strip that out, it's double digits growth. Okay. That's helpful. If I were to look at your EBITDA margin guidance, so you're seeing similar levels like 19%, and Sorry to interrupt, Mr. Srinivasan. There's a lot of disturbance from your line. Yeah, go ahead, Sham. We can hear you though. Yeah, yeah. I was talking about EBITDA margin guidance remaining similar. We have now done two years of similar kind of an EBITDA. Is there any scope that over time we can actually take it beyond the 20% level? What could be some of the drivers? Evidently, I think you're kind of starting to rationalize a lot more. I just want to understand the slightly more longer-term outlook for EBITDA. Sham, this is Mani here. We wanted to guide to a very realistic number, okay. I think as you know, I mean, overall there is some amount of uncertainty. There are geopolitical issues, and also we've been seeing that the input costs are a little higher, and sometimes expenses also vary. Taking all this into account, we thought we should guide to 19% rather than to say anything more than that. I think, we're hopeful to reach that. Also, Sham, on the EBITDA, you know, we have two drivers, right? One is, you know, Ryzest, you know, will be a significant contributor to the EBITDA. Our gross margins are better, should be better this year because COVID drug gross margins are lower compared to our overall gross margins for the business. These two should further help the EBITDA, b ut a s Mani said, we've been conservative, you know, given the external environment. At least at this point of time, the thinking is that all the gains you can make out of these, say Ryaltris launch and all of that could be offset by raw material inflation. Is that That's correct. That's the view. Also, just to add, see, Sham, while last year was a good year, the Q4 was a little bit of a challenge because of various issues. I think the Q1 also you would see, you know, closer to 17%-18%. It will not touch those levels. I think after the Q1, things should ramp up better. These are the reasons why we feel the full year should be closer to where we were last year and the previous year. Got it, Mani and Ravi. Thank you. All the best. Thank you. A reminder to the participants, anyone wishing to ask a question, may please press star and one. Participants in the conference, if you wish to ask a question, you may please press star and one. The next question is from the line of Sameer Baisiwala from Morgan Stanley. Please go ahead. Hi. Thank you very much, and good morning, everyone. What's the kind of de-leveraging that we are looking at for fiscal 2023? Any back of the envelope calculation cash flows? Sameer, this is Mani here. Good morning. We would not like to really put a number out. Actually, I mean obviously there has been some amount of challenges when you look across the supply chain. We are confident we should have some amount of de-leveraging, but we don't wanna put a number out straightaway. I feel things are okay, but sometimes the working capital squeeze also has been little difficult this year. I think it's we would definitely guide that we want to reduce it further, but would not want to put a broad number there. Okay, that's fine, Mani. The second question is, you talked about RYALTRIS US launch sometime in fiscal 2023. I mean, can you be a little bit more specific? Is it like second half of this year that you're looking at? Yeah. It'll most likely be second half, Sameer. Okay, great. Final question, quick question on Salmeterol. You talked about filing in calendar 2023. Does that mean launch sometime in calendar 2025? If there is anything on IP side which is blocking it. You know, Sameer, it's hard to predict the launch date. It could be earlier. D efinitely by 2025, we think this product should be on the market. Okay. That's great. Yeah. Thank you. That's all from my side. Thank you. The next question is from the line of Nitin Agarwal from DAM Capital. Please go ahead. Hi, yeah. Mani, on the working capital, there has been a pretty sharp increase in receivables for the quarter. You know, typically your supply chain issues have resulted in relatively high inventory across most companies. In our case, the pressure seems to be coming through the receivables front. Can you help us understand what's happening there? Yeah, sure. Fine, obviously there would have been some amount of increase in the debtors because of the growth in the activity in the business. But also because of certain geopolitical issues across, we developed some delays in receiving some monies, but we are now receiving all those collections also. There was a little bit of a sharp increase in that. That's mainly the reason. I mean, inventory also went up, but the number of days we are doing quite okay. As far as the debtors goes, some portion of that is basically due to these issues that I just elaborated on. How are you? We're getting all the collections, no problems. Actually, sir, we should realistically expect a reduction in the net working capital cycle this year now again, going back to the previous level? I hope it happens, Nitin, but as you can see, there have been challenges on the overall supply chain issue, so it's hard to predict right now. We are hoping that this year it will kind of. On an overall basis, if I look at it really, Nitin, our working capital has gone up by about 8-9 days. Considering all the issues that one has faced, be it China, be it Russia, I think it's something that we need to be mindful of as we go along. Yeah. Fair enough. Secondly, on the CapEx guidance for the year, this INR 700-800 crores that you're looking at, can you just give a broad breakup of this CapEx? As you know, we are having a number of brownfield and greenfield projects in our APIs and in GLS, so that should be about INR 200 crore+. We said we guided to INR 700 crore-INR 800 crore. The balance obviously, while we have brought down the number of in-licensing, whatever we pay, but it will still be there to some extent. Current year also our intangibles have been around INR 160 crore or so, or, if you remove computers also, absolutely INR 120-130 crore. We'll continue to have some in-licensing spends. Besides that, obviously we'll continue to have some normal CapEx in GPL as well, and some amount on the R&D side as well. All this put together will come close to that. I mean, over the years, we have brought down, Nitin, from almost 1,000 to 900 to 750 odd. We're hoping if at best we can do something about it, but for a company that wants to grow at double digits, some amount of CapEx does come in. That's why we are guiding to a number which we feel is realistic. Fair enough, sir. Lastly, on Monroe, what has been the total CapEx investment in the business so far? So far, Nitin, we have spent almost about INR 200 million on all the three lines put together over the years, yeah. Glenn now, when do we see returns on this $200 million investment, you know, in terms of meaningful returns on this business, on this investment in your assessment? Nitin, obviously it's gonna take us some time, right? But as I said, look, Monroe is not the only facility, right, that we are supplying to the U.S. We have four other facilities which are supplying product to the U.S. and we continue to stay excited about the US business, just given the, you know, the respiratory filings and everything else we are doing. Thank you. Thank you. The next question is from the line of Saion Mukherjee from Nomura. Please go ahead. Yeah, thanks for the follow-up. Sir, just wanted to check on the COVID write-off. You said INR 38 crores of inventory written off this quarter. Anything else that is pending, sir, which we will see? That is why, Saion, we gave a heads up that, in the channel, obviously we know what's there. There is about almost INR 90 crores still in the channel. While there is still time to, you know, for them to expire or whatever, but we will take a call as we go along during the year, okay. As you can see, some of our peers have had large write-offs, and when they expire. In our case, there is life still, I mean, there is still no date, but we will review as we go along in the coming quarters. Okay. On the R&D spend, you know, given the clinical trials on respiratory assets, how should we think about overall R&D spend and split between Ichnos and generics? We will continue to spend only about 10%, keep it flat, Saion. Ichnos would be closer to half of that, about 5% or little lower than that, and genetics would be the balance. As you can see, over the last couple of years, we have been, very careful about the way we spend in Ichnos, so we'll continue to do that. Okay. Glenn, any update on Ichnos, readouts, any timeline that you would like to share now? I think this year there are four inflection points for Ichnos, right? 1342, we are hoping we'll get POC within the next three months, right? 1442, we are starting clinicals and there's a possibility that this year, because of the starting dose that's been approved by the FDA, we think in this financial year there's a possibility we may get to POC. Then, you know, 2001, which we recently announced, right, enters the clinics or we file our IND in Q4 of this year. Of course one partnering deal is the minimum we expect this year from Ichnos. These are the four inflection points we think for the year for Ichnos. Okay. One last question on the U.S. generic. I mean, should we expect a growth in U.S. this year given the price erosion, or it could be a decline, you think? We think it will be low single-digit growth for the year. Okay. Thank you. Thank you. A reminder to the participants, anyone wishing to ask a question, may please press star and one. Participants in the conference, if you wish to ask a question, you may please press star and one. The next question is from the line of Nimish Maheshwari from RSPN Ventures. Please go ahead. Good morning. I just want to ask, what is your view on the? Sorry to interrupt, Mr. Nimish. Your audio is not clear, sir. Can you use the handset mode while speaking? Okay. Is it clear now? Much better, thank you. What is your view on the management view on the COVID in this financial year 2023 and ongoing situation? We don't anticipate, any COVID sales in FY 2023, right? We don't. I mean, you have, as part of the endemic, you'll have some small pockets of COVID incidences happening. But we don't think we're gonna see it as a pandemic in FY 2023, particularly in India. You may see some countries which still have COVID cases and you know, we also export product off and on to some of these countries. But in India, we don't anticipate any COVID sales in FY 2023. All right. Thanks. Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to Mr. Ravi Agrawal for his closing comments. Yes. Thank you, moderator. We'll read the disclaimer before we end. The information, statements, and analysis made in this document describing Company's products are forward-looking projections and estimates are forward-looking statements. These statements are based on current expectations, forecasts, and assumptions that are subject to risk and uncertainties which could cause actual outcomes and results to differ materially from these statements, depending upon economic conditions, government policies and other incidental factors. No representation or warranty, either express or implied, is provided in relation to this document. This document should not be regarded by recipients as a substitute for the exercise of their own judgment. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. With this, we end the call today. A very big thank you to all of you for joining us on the call. Thank you. Ladies and gentlemen, on behalf of Glenmark Pharmaceuticals Limited, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you.