Good morning, ladies and gentlemen. Welcome to the Q4 FY 2024 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. Utkarsh Gandhi, General Manager, Investor Relations for Glenmark Pharmaceuticals. Thank you, and over to you, sir. Thank you, Lizanne. Good morning, everyone. Welcome to the Q4 FY 2024 results conference call of Glenmark Pharmaceuticals Limited. Before we start the Q&A, we'll review the overall performance for the company for the fourth quarter and the full year 2024. For the fourth quarter of FY 2024, Glenmark's consolidated revenue from operations was at INR 3,063 million, as against INR 3,005 million in the corresponding quarter last year, recording an overall year-on-year growth of 2.1%. For the 12 months of FY 2024, Glenmark's consolidated revenue was at INR 118,131 million, as against INR 115,832 million, recording a YOY growth of 2%. In terms of key highlights for the fiscal year 2024, so, across businesses, there were some key highlights. In the fourth quarter, Glenmark gained two positions to be now ranked as the third largest company in the cardiac segment of the Indian pharma market, as per IQVIA March data. Glenmark's Europe business registered a strong growth of 33.7% for the full year, and the ROW business also recorded a revenue growth of 16.1%. Rialtris was launched in seven additional markets across the globe, either on our own or through a commercial partner, and as of March 2024, Rialtris has now been launched in 34 markets across the world. The company also enhances global branded portfolio through the in-licensing of envafolimab for India and ROW markets and Winlevi for some European markets, UK and South Africa. Ichnos Sciences announced the worldwide out-licensing agreement for its OX40 portfolio, including ISB 830 with Astria Therapeutics. Glenmark and Ichnos entered into an alliance, Ichnos Glenmark Innovation, to accelerate new drug development in cancer. Glenmark completed the divestment of 75% of its stake in Glenmark Life Sciences to Nirma Limited. In terms of our over performance across regions, starting with India, so sales for the formulation business in India for the fourth quarter of FY 2024 were INR 9,391 million, as against INR 8,316 million in the corresponding quarter last year, recording a growth of 12.9%. In terms of secondary sales, Glenmark India business continued to outperform the overall industry in terms of growth. As per mar... IQVIA March 2024 data, Glenmark's India formulation business recorded a growth of 11.4% in the fourth quarter and about 10% growth as of MAT March 2024. In comparison, the IPM grew at 5.6% in the fourth quarter and about 7.5% as of MAT March 2024. Glenmark continues to outperform the market in terms of its key therapeutic areas of cardiac, respiratory, dermatology. We have provided a table in terms of our Q4 and MAT growth in the MD&A. Glenmark India business continues to be ranked 14th, with a market share of 2.16%. The company continues to have nine brands in the IPM top 300. And in terms of key therapeutic areas, Glenmark is ranked second both in dermatology and respiratory segments. As mentioned before, Glenmark is now ranked third in the cardiac segment and is ranked seventeenth in the diabetes segment. As noted in the MAT, Glenmark has also improved its market share across some of the key therapy areas. In January 2024, Glenmark and Pfizer joined hands to launch Jabryus, which is abrocitinib, which is a first of its kind oral advanced systemic treatment for moderate to severe atopic dermatitis in India. Developed by Pfizer, Jabryus has received marketing authorization from the CDSCO in India and is also approved by the U.S. FDA, the EMA, and other regulatory agencies. So abrocitinib, which is the molecule, is being co-marketed by Glenmark under the brand name Jabryus and Cibinqo by Pfizer, respectively. In terms of our consumer care business in India, the primary sales in Q4 were about INR 673 million, with a growth of 3%. For the full year, the GCC business recorded growth of INR 2,570 million, with a growth of 14%. The company's flagship brand, Candid Powder, delivered growth of 15% for the full year, and La Shield portfolio delivered a YOY revenue growth of 8%, while Scalpe+, grew by 23% in full year FY 2024. During the year, various line extensions were launched and performed well, particularly a couple for La Shield and Scalpe+. North America business. The North America business registered revenue from the sale of finished dosage formulations of INR 7,557 million, which is about $91 million U.S. dollars, for the fourth quarter of FY 2024, as against INR 8,628 million, which was $105 million, for the fourth quarter of FY 2023, and 7,629 million, which is about $91.6 million for the third quarter of FY 2024. This translates into a year-over-year decline of 12.4% and a quarter-over-quarter decline of about 0.9%. The overall business remained challenging on account of lack of any meaningful product launches and a delay in scale-up of some recent launches. In FY 2024, Glenmark was granted final approval on three NDAs, tacrolimus, 0.03%. In the fourth quarter, Glenmark launched levofloxacin dihydrochloride. Glenmark also launched several products under the licensing agreements, including some of the injectable products, as mentioned in the last call. The company filed six NDAs with the FDA throughout the year, and two NDAs in the fourth quarter. Glenmark also leveraged its strong capabilities in the respiratory area to build a portfolio for the U.S. market. As mentioned in the Q3 call, Glenmark has filed two NDAs for the generic nasal sprays and is awaiting approval for the same. In addition, happy to report that the company has filed the NDA for generic Flovent, 44 mcg pMDI, in May 2024. Glenmark also plans to file another generic respiratory pMDI for the U.S. in FY 2025, and will continue filing momentum beyond that. In terms of another update, there's a change in leadership for the North America business. Mark Kikuchi will be joining the company as President and Business Head, North America, effective twenty-eighth of May. Mark joins us from Dr. Reddy's Laboratories, where he was CEO of the North America business since 2019. Overall, he has more than three decades of experience across the pharmaceutical industry. Moving on to Europe. Glenmark's Europe operations for the fourth quarter of FY 2024 was INR 6,118 million, as against INR 6,078 million in Q4 FY 2023, recording a YOY growth of about 0.9%. The European operations continued to remain strong in terms of overall business performance. The branded market has performed well. The growth in the fourth quarter was impacted due to some softness in the tender markets. Key branded markets across the CE, such as Poland, Slovakia, recorded double-digit growth. The respiratory portfolio that we have launched in Europe continues to do well. So key brands like Rialtris and Salmex continue to sustain their 15%+ market share across some of the markets, both in terms of value and volume. The company is continuing to sustain the increasing contribution from the branded markets in Europe. It is awaiting approval of 4 respiratory products, which were filed in the fourth quarter of FY 2023. We are also planning to launch Winlevi, which we licensed in this year, in some markets of Europe, starting FY 2026. Moving on to the ROW region. For the fourth quarter of FY 2024, revenue from the ROW region was INR 7,528 million, as against INR 6,864 million for the corresponding quarter last year, recording a YOY growth of almost 10%. As per the IQVIA data, Glenmark's Russia business continues to perform well, both in terms of Q4 as well as MAT data. In terms of our key therapeutic areas, Glenmark continues to record strong growth, and we are ranked ninth in the dermatology market of Russia and in the respiratory expectorants market, we have grown in line with the overall market and continue to be ranked second as per the IQVIA MAT data. Rialtris continues to gain market share in the allergic rhinitis market in Russia. Latin America witnessed strong growth in Q4. Respiratory portfolio doing well. Glenmark Brazil achieved high single-digit growth in the covered market, and the company maintained its rank amongst the top 10 companies in the covered market of the chronic respiratory segment. Glenmark launched the first generic Symbicort on MDI in Brazilian market in Q4 FY 2024. And across the other big market, Mexico, secondary sales growth continued to be strong. Rialtris has been approved in Mexico and will be launched soon. In Middle East and Africa region, company has achieved secondary sales growth in some of the key markets like Kenya, South Africa. Rialtris continues to be the leading nasal spray in the allergic rhinitis market for South Africa, and the product was launched in markets like Kenya and Saudi Arabia in FY 2024. It is also expected to be launched in other key Middle Eastern markets, such as the UAE, in the forthcoming quarters. The Asia region recorded a slightly subdued growth in terms of secondary sales across its key markets due to some macroeconomic challenges in some countries. Top contributing brands across the key therapeutic areas have continued to do well. Glenmark has received some good approvals in the region, mainly in the dermatology, respiratory, and oncology segment. Rialtris, again, continues to do well across the Asian region. In terms of our endeavor to create global brands, starting with Rialtris. So as of March 2024, marketing applications for Rialtris have been submitted in more than 80 markets. Product has been licensed in 24 markets. Glenmark's commercial partner in the US, Hikma, continues to record substantial increase in the last quarter performance on a QOQ basis. This was backed by strong demand and increasing coverage across major pharmacy chains. Menarini, Glenmark's partner in the EU, has witnessed steady increase in market share across markets. Glenmark's partner in mainland China, Grand Pharma, has received acceptance of the NDA in February 2024. The company expects approval to be received sometime in FY 2026. In the NDA, we have provided the market share across the top 15 markets in terms of IQVIA December 2023 data. Moving on to envafolimab. So in January 2024, Glenmark announced the signing of a license agreement with Jiangsu Alphamab Biopharmaceuticals and 3D Medicines, Beijing, for envafolimab, for India and ROW markets. envafolimab, under the brand name Enweida, has been approved in China by the Chinese NMPA in November 2021, as a global first subcutaneous injection PD-L1 inhibitor for the treatment of adult patients who previously treated MSI-H or deficient MMR advanced solid tumors. 30,000 patients have already benefited from this innovative treatment in China, where it has officially been included in the list of breakthrough medicines. envafolimab is also being currently developed in the USA by TRACON Pharmaceuticals in a pivotal trial with soft tissue carcinoma subtypes, including some specific subtypes. Glenmark plans to file envafolimab in more than 30 markets in FY 2025, and the first market launch is expected in FY 2026. Lastly, Winlevi. In Q2 of FY 2024, Glenmark and Cosmo Pharmaceuticals announced the signing of signing of distribution and license agreements for Winlevi, which is clascoterone cream 1% in 15 European markets, as well as the UK and South Africa. Glenmark plans to launch Winlevi in its licensed markets starting FY 2026. Glenmark Life Sciences. In September 2023, Glenmark had announced that it had entered into a definitive agreement with Nirma Limited to divest 75% stake in its subsidiary, Glenmark Life Sciences. Subject to closing adjustments, the consideration was INR 56,505 million. In March 2024, the company completed the closing formalities of the divestment, and Glenmark continues to now own 7.84% in GLS after the divestment. Ichnos Glenmark Innovation. The company had recently announced the launch of their alliance with its subsidiary, Ichnos Sciences, called Ichnos Glenmark Innovation, or IGI, to accelerate new drug discovery in cancer. This combined Glenmark's R&D proficiency in small molecules with those of Ichnos in novel biologics to develop to continue to develop cutting-edge therapy solutions for hematologic cancers and solid tumors. Going forward, all of Glenmark Group's investments on innovative assets will be channelized through IGI. IGI has two in autoimmune assets that have been out-licensed to leading companies, and apart from that, we have a diverse pipeline of three innovative oncology molecules targeting Multiple Myeloma and acute myeloid leukemia and Solid Tumors. These are all undergoing clinical trials. We have some further updates on the IGI pipeline on the website. In terms of our key objectives for FY 2025, consolidated revenue target is INR 135,000 million-INR 140,000 million. R&D investment for FY 2025 is targeted to be around 7%-7.25% of the total revenue. EBITDA margin target is close to 19% for full year FY 2025. Consolidated capital investment would be INR 7,000 million for FY 2025, and we are targeting double-digit PAT margins for the full year FY 2025. Some notes to the results before we open the Q&A. Other income primarily includes the mark-to-market value from our 7.84% stake in GLS. Exceptional item in the consolidated and the full year result is a loss of INR 446.78 crore and a loss of INR 900.95 crore on account of a few items which are listed in the P&L. R&D expenditure in Q4 FY 2024 was around INR 265 crore. Consolidated total asset addition in the quarter was INR 280 crore, of which tangible was around INR 159 crore and intangible asset addition was about INR 121 crore. Gross debt for the period ended March 31, 2024, was at INR 990.6 crore, and net cash for the period ended March 31, 2024, was at INR 667.7 crore. In terms of our working capital, at the end of March 2024, our inventory was at INR 2,513 crores, receivables was at INR 1,858 crores, and payables was at INR 2,535 crores. We have the management of Glenmark Pharmaceuticals on the call today. Mr. Glenn Saldanha, Chairman and Managing Director, Mr. V. S. Mani, Executive Director and Global Chief Financial Officer, and Mr. Ashish Mali, Vice President and Head of Corporate Strategy. The management will be presenting its long-term vision and outlook during the upcoming Investor Day. So, today's call will be more focused on the Q4 results. With that, we can open the floor for Q&A. Over to you, Lizanne. 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 Sayan Mukherjee from Nomura. Please go ahead. Yeah. Hi, good morning. So my first question would be on the exceptional items that you had. So firstly, on this write-off that we had for, you know, INR 2,180 crore, if you can give some color, what is this related to? Yeah. Good morning, Sayan. Thanks for the question. So if you are talking about this, write-off that we have given in our notes for the U.S., right? Yeah. So this was basically one was the impairment of assets in Monroe. And you know, and the balance was basically the working capital rationalization that we did in terms of some provision for rebates, et cetera, and also inventory write-down. Yeah. This is mainly working capital and, No, it's mainly impairment of assets in Monroe. As you know that we had three lines there, right? We had the nebulizer, we had the oral solids, and lastly, we had the injectables. So now we decided we are working only on the injectables, as we've given also in the note. And the other two lines we wrote down. That is a major one, or more than 50% of that. The balance is basically on inventory write-down and some rationalization of provisioning, et cetera. This number is $263 million. Yeah. If I connect the total, you know, CapEx at Monroe was at a lower number, right? This appears much higher. Yeah, yeah, I'll answer you that. So about almost INR 127 million is basically the Monroe part of it, what assets that we wrote off. The balance is mainly about INR 130 million is basically inventory and provisioning, both of them put together on rebates. Okay. Yeah. I also noticed that the receivable number has come down significantly. Sure. You know, almost INR 1,800 crores. So is that part of this write-off, and then we should see this number higher going in the next quarter? Sure. I, I'll answer that. So as you know, in the balance sheet, there is a reduction of almost INR 1,800 crores. So there is a cash flow impact also, almost about INR 970 crores. So basically, this is on account of two reasons, Sayan. One is obviously, if you know, third quarter also, we did some work on the India piece, which gave us some benefit, so that would be closer to INR 600+ crores. The balance is. Obviously, there are two more reasons, you know. Like, in this quarter, there was not so much growth, but in the going forward, we expected to be about INR 3,400-INR 3,500 per quarter sales. So automatically, debtors would go up, and therefore you would see it, you know, stabilize by about 10-12 days more. It could stabilize at about 70-72 days in the medium term. Okay. And so the other one is intangible, which is $133 million. Again, if you can, you know, talk about what led to this intangible number write-off. What is the reason? Yeah. So just to give a little color, you know, as we went about this GLS transaction, we decided to have a good look at some of our businesses across, especially the key ones. So one, I just spoke to you earlier about the U.S. piece. The second was obviously in intangibles that we have. So over the years, we've been in licensing products, et cetera. So obviously, we felt some of those which probably are not looking that good, so we decided that we'll impair them. So those are the reasons. We used to have a book almost of INR 2,000+ crores of intangibles. We've reduced about INR 1,100 million, yeah. These are all non-cash write-offs. Okay. Sir, just one last one. This gross margins is very high in the fourth quarter, so material cost to sales I see is around 32 odd%. What's the you know steady sustainable number we should see on a gross margin going forward? Sure. And going forward, it should be around, you know, these levels, give or take, plus or minus 1%, Sayan. Because obviously, this quarter, obviously, we had the benefit of India being a little higher. But in the coming year also, if I look at it, with Rialtris expected to sort of grow substantially or almost double up from where we are, it should automatically help us to do better. Okay, so there is no one-off in this number? No, no, no. The number is substantial. Yeah. See, mix also keeps changing, no? Sometimes the sale mix also changes, so yes. But on a broad basis, we'll be very close to these numbers, as I said, give or take, plus, minus 1%. Okay. Okay, thank you, sir. I'm done. Thank you. The next question is on the line of Gaurang Sakare from HSBC. Please go ahead. Hi, am I audible? Yes, you are. Yeah, go ahead. Yeah, thank you for taking my question. I had a couple of questions. Firstly, on Monroe, what is the status update from U.S. FDA? When can we expect reinspection, and how is our remediation going? So, good morning. So on Monroe, we are pretty much done with all the remediation, right? We've been done, and we are requesting FDA for a meeting and a possible inspection. So we are hoping that in first quarter, they will come in the next couple of months, I'm guessing. So all we are now taking batches of product and you know, some exhibit batches for the rest of the year. Oh, okay. Thank you, sir. And second one, actually, you know, at the start, I missed the comment on this other income being higher. Actually, my line just got distorted at that time only. So can you please repeat what you said? We still continue to have a 7.84% stake in Glenmark Life Sciences. The mark-to-market of that was almost INR 750 gross. That's it. Okay. Okay, sir. Thank you. Thank you. That was all my questions. Thank you. The next question is from the line of Kunal Randeria from Axis Capital. Please go ahead. Hi, good morning. Just want to reconcile this net cash number. H1, you are around INR 3,300 crore, and you are around INR 700 crore net cash. From the cash flow statement, it seems that you've got around INR 5,450 crore, and then there was some tax inflow of INR 900 crore. Your working capital also required INR 600 crore, right? Intermittent CapEx is INR 5 crore. I'm just wondering, you know, I would have thought maybe the net cash now would have been slightly higher. If you can just run us through, you know, how you arrive at this number. Sure. I'll try to be as helpful as possible. So obviously, we got about 5,450 net of the transaction cost. The tax is about 17.5%, so we get about INR 4,500 crores. You are right. At the end of December, we had about 3,960, plus, as you can see now, our cash has also increased to INR 500 crores. That kind of balances each other. On the other side, if you look at my business, we had an EBITDA of almost, you know, 1,195, and we had a cash interest of about 517. The cash tax there is less because most of the taxes this year were for this. So if you take 80-90 crores tax also, still we get about 580 or so. But if you take the other side, there are assets acquired, there is dividend, there are some other exceptional items in terms of the litigation and remediation costs what you have there. But the big piece is the litigation that we paid on the Zetia piece, almost INR 498 crore. I think that could probably be the difference that you're looking for. Right. But, is my understanding wrong that, you know, your working capital also improved around INR 1,500 crore, so? No working capital, as you can see even in my cash flow statement, improved about a little less than INR 800 crores, okay? INR 796 crores. Yeah. Okay. I was just looking at the H1 numbers, you know, your receivables and, you know, inventory was around INR 18 odd crore higher than what you have given in the presentation now. So now it's your inventory is around INR 2,500 crore, because around INR 3,300 crore, if I'm not wrong. No, in the receivable piece, there is another, you know, as we explained in the previous question, there is a write down of almost INR 837 crore. So that, that's the piece. Just some receivable, I mean, the rebate provisioning across most geographies, especially the US. So that could be a difference, yeah. Okay. Okay, got it. Okay. Okay. Secondly, yeah, secondly, so just, generic Flovent. So since you have filed it, you know, I'm just wondering, you know, when do we expect approval, and what is the situation in the U.S.? Because I believe GSK had, is continuing the product and now there is only AG in the market. So your thoughts on this product? So, you know, we believe that we are the first filer on this product, okay? So, I mean, it's launch on approval, basically, right? And since we filed now, so sometime next year, we are hoping we can launch the product, FY 2026, right? It's a big product, about $400+ million in sales, just this one SKU, as per IQVIA. And we're working on the subsequent SKUs, right, which is the 110 and 226. So I think collectively, it's a $1.6 billion drug with just the AG out there, right? GSK has launched an AG, right. Got it. And lastly, on Rialtris, I see in a lot of markets you have very stable market share. So I'm wondering now from FY 2024 to, let's say, FY 2026, which are the markets where you expect the growth from? So, I mean, we've just started the launch phase, okay, of Rialtris. So Rialtris, we think, you know, I mean, our peak sales now will look more like $200 million-$300 million over the next three to five years. And, you know, if you look at the markets, we've just started launching, as Utkarsh mentioned, Mexico, we just got approval, so we're launching. There are some very big markets where we still don't have a presence, right? Mexico is one. Brazil, we are hoping to get approval either this year or next year, so FY 2025 or 2026. Then, of course, China, which will be a big launch for us, right, starting FY 2026. So there are a host of markets where we still don't have the product itself. Among the products, markets where we have the product, right, the uptake is rampant, right? So first three years, you'll see, you know, you know, very substantial growth, right? Almost 80%-100%, right, till the brand gets established, right. Post three years, it'll grow, you know, it'll start slowing down, right? So, I mean, this, we are in that phase right now, where sales are doubling, basically, right? So this year, we anticipate, you know, Rialtris will be over $80 million in sales, right? We are in that phase right now, the launch phase. Also, we are expecting better performance from the U.S. market, from our partner Hikma this year and next year. That will further help the brand grow substantially. Just to add, even if you take- Yeah The top markets, right? I mean, we are about 15%+ in only three markets as of now. So there is still, even in the markets where we have launched, there is still significant scope for us to expand. And obviously, this is also a value of, or a factor of when the product has been launched. So as Glen mentioned, some of the launches have happened more recently, so the market share uptake will, will be visible in the next few quarters. You still expect emerging markets to be the key book growth driver here, right? I think we've seen growth across markets, not just emerging markets. Europe is doing exceedingly well, right, for Rialtris. The U.S., we still have some ground to cover, right, as I mentioned, but, Europe and emerging markets, it's a big product. Sure. Sure, and just one last, if I can. The INR 700 crore of CapEx for next year, if you can just outline your plans on how it will be spent. So basically, the INR 700 crore CapEx, obviously, till last year we had GLS also in the CapEx. Going forward, it will not be there. But, we on an on and off, we obviously required to invest in additional lines. As you know, business is growing well also, and, we see some lines for that. And also we are looking at sometimes in licensing some good products. While we may not do a big bang M&A, but we'll do definitely in-licensed products as and when you require. You've already seen us do two the last year, so I think we'll add to it. Yeah. Sorry, just to push you on this, because I would have believed that, you know, the U.S. not doing very well at this point in time, your, you know, capacity might not be, you know, optimum, not fully utilized. So just wondering why you will need so much CapEx. I think, I mean, you are seeing substantial growth across the business, right? I mean, every year we are adding, you know, a substantial amount, right? And FY 26 will be a big year for the company. That's what we believe, right, in terms of overall growth, right, top line growth. So in order to plan for FY 26, right, we are putting up the CapEx this year, right? So we are adding additional lines across our portfolios, for example, Rialtris and multiple other areas, right? Now with generic Flovent coming in. So I think there's a significant amount of front-ending CapEx required this year, right, to get to the FY 26 performance, right. Thanks a lot. 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 G.V.K. Chaudhary from PD Investments. Please go ahead. Good morning, sir. My question is about legal settlements in U.S. What is the further payment required for the two settlements that you have already entered? And is there any... Or what would be the liability on that count? There are, I mean, obviously, for these two, we have to pay about $30 million, $30 million for the criminal one and $25 million for the civil one. In the next coming year, we have to pay about INR 300 crores. Some payments are still due of the Zetia that was there. Most of it was paid last year, but some are still there. Plus, as you know, we have given clearly, we pay these settlements over 5 years, so after that it should be much lower. Okay? The year after that, it will be lower. Next year, I mean, FY 2025, the liability is be about 26, I mean, INR 300 crores. Liabilities will not be there, sir. Liabilities are all already taken. I'm saying the payouts in terms of cash. No, I'm asking whether it is being provisioned. It is already provisioned, sir. There is no effect on P&L, any further. There are no impact on the PNL. There'll be no impact on PNL. The cash outflow will be about INR 300 crore in FY 25. Monroe, is there any possibility of you being able to use the facility at all in future? Well, the other two other than injectables. No, the other two lines we've already impaired, so it's basically the injectables that we will commercialize. We are hoping to start this year, right, commercialization of the products. Is there any possibility of you being able to dispose those two lines to someone else? So we are doing that. We are, we are- So we'll see. Basically, we are impairing it, so we can't use it much. So that will be more of scrap. Okay, that's all right. Okay, thank you. Thank you. Thank you. The next question is on the line of Aditya Thakur from 5Y Capital. Please go ahead. Hi there. As you told, FY 26- Sorry, sir, Aditya Thakur. Sir, your audio is not clear. May we request that you use the handset mode while speaking? Hi, can you hear me now? Sir, slightly better. Please proceed. Hi, sir. As you told, FY 26 will be a better year for Glenmark Pharmaceuticals. You have already given guidance for FY 25. If you could do the same for FY 26, like any ballpark guidance, in terms of sales and profitability. Thank you. I think it's too early to guide on FY 2026. I think at our investor day, which is coming up this week, right, later this week, we will provide a much more longer term horizon, right, on the business. So that should give you a clear idea of where the business is going. At this point, specifically FY 2026, we wouldn't guide. It's too early. Okay. Thank you. Thank you. The next question is on the line of Krish Mehta from Enam Holdings. Please go ahead. Yeah, thank you for taking my question. So I just wanted to ask that around two years ago, we had kind of guided that Ichnos R&D and cash spend would be made nil. So on that basis, in that backdrop, could you please tell us for FY 25, what the Ichnos cash R&D spend will be from Glenmark? The, you know, IGI spend in 2025 will be about $50 million, okay? We've brought it down substantially, right, over the years. Now this year will be about $50 million, and I think going forward, we will make sure it stays at $50 million or comes even further below that, right? Okay, thank you so much. Thank you. The next question is from the line of Vikas Sharda from Antique Stock Broking. Please go ahead. Yes, hi, two questions. This receivables is down sharply this quarter. Could you explain how—I mean, is it because of the provisions for rebates that you have made, or how should one look at it? And also- What is the nature of this provision for rebates? I mean, what was the need of making this provision, and how should one look at that? Sure. So, Vikas, I explained earlier, but I'll do again. So obviously, the reduction in the receivable is on account of two reasons: one is obviously there was a better cash flow, as we explained earlier. In Q3, we had sort of brought down our inventory in the channel, so that added to the, to the reducing the receivable by about INR 600 crore. Besides, the growth in this quarter- ... was a little less. Therefore, obviously, the cash flow was little better on that count also. Now, going forward, the way to look at it is that if you are going to have a sale of almost INR 3,500 crores, if you add INR 500 crores more, your obviously debtors will go up. So that should go up by 10-12 days. And your, second question on the, provisioning. Obviously, you have, you provision for various deductions, you know, including rebates, et cetera. So as we said earlier, after we did the GLS, we looked at across all the businesses, and we saw that we, we could, you know, sort of looked at the provisioning, and therefore we saw that, it could be increased. So that's the reason why we did that, and, that's the reason why it looks lower. Okay. So this, like, INR 1,100+ crore of deduction, the data, so INR 600 crore is because of India, and what would be the remaining INR 500 crore for? No, I'll put it this way. Almost INR 900+ crores is cash flow. About INR 800 crores is basically the provisioning increase, okay? You saw the debtors have come down to almost INR 1,800 crores, right? I'm giving you a breakup of that. Year-on-year, basically. Yeah. Hello? The line to the current participant has dropped off. We will move- Okay. Take the, take the next one, yeah. Sure. The next question is from the line of Sayan Mukherjee from Nomura. Please go ahead. Yes, sir, thanks for taking my question again. Just one, this INR 300 odd crores of exceptional that you had, which includes the remediation cost and DOJ settlement. Can you just give a broad breakup for this quarter of this INR 300 odd crores? In this quarter, there is not much remediation, Sayan. Until last quarter, altogether for the full year, we had about INR 98 crores. It was about INR 30+ crores in U.S. and almost INR 70 crores in India. And the, as far as the, settlement is concerned, that's a separate line item, almost, $60 million of that. Besides that, we obviously had to spend something on external litigation costs that came to about, closer to, less than INR 200 crores, yeah, we had to pay for our legal bills. So this number that is having. No, so I was looking at the INR 300 crore for the quarter. Yeah. So you're saying there is not much remediation there in that INR 300 crore? No, there's not much remediation in this quarter. It is more of the bill for the legal settlement and, obviously, mainly that's one of the key reasons, yeah. So legal settlement is $30 million, right, sir? DOJ. Yeah, INR 30 million, INR 25 million in this quarter. DOJ? Yeah, DOJ, civil. DOJ. Okay. Thank you. Thank you. The next question is from the line of Vivek Tulsyan from Newm ark Capital. Please go ahead. Hi, my question is to Mani, sir. Sir, if you could explain, so there is exceptional item- Sorry, Mr. Tulsiyan, we're not able to hear you clearly. Okay. Yeah. What I was asking was, if you look at the exceptional item, there's a loss of about INR 447 crores. Could you take us through the bridge from, you know, the income that we would have made from sale of GLS to how do we get to INR 447 crores of loss? Sure. So the sale of GLS was about INR 7,500 crore. Obviously, there was this, you know, the GLS reserves which are there. This is clear accounting, so about INR 2,200 crore. And apart from that, as we have provisioned for, DOJ, you know, civil and, criminal, I mean, the civil part of it this time, and then there were exceptional legal fees and remediation costs. Remediation is not much in this quarter, about INR 60 crore in this. I mean, on the impairment of assets, which I already explained to you on Monroe, about INR 1,052 crore. We also spoke of working capital rationalization. We also said about Europe, intangible impairment of INR 1,100 crore. Broadly, these are the breakups to reach to INR 447 crore. ... Okay, so on the standalone, there is an exceptional gain of INR 5,000, but on the consolidated, the number might be lower. Is that the way to? Exactly. Because most of the write-downs are outside, yeah, that's the reason. Understood. The second question is on R&D. So our R&D target for FY 2025 is about 7.5% on a guidance of INR 13,500 crore of revenue. If I do the math, that's about, you know, 1,000 crore, which is not very different from the amount we spent in FY 2024. So, is that the steady state R&D going forward? I mean, clearly, the generic R&D spend is going up and Ichnos, IGI is coming down, right? So you're right. Going forward, we'll have a similar run rate on R&D. About as a percent, you should take the R&D spend at around, you know, going forward, also around 7 odd%, right? In that ballpark, right, in subsequent years. Got it. Just one final question on Monroe. So we have, you know, like you mentioned, we've taken a little bit of impairment of our assets. So what is the remaining value of the assets at Monroe now? Yeah, it's about $150 million. Yeah, still. That is the injectables and the utilities. Got it. Dollars. Yeah. Okay. Thank you so much. Thank you. The next question is from the line of Utsav Jaipuria from DAM Capital. Please go ahead. Hi, sir, thanks for the opportunity. Just a couple of questions from my side. Firstly, on this working capital bit, you said that receivables are expected to increase by 10-12 days. So can you give, like, a similar guidance for the inventory and payables? Inventory would mean marginally go up, but to that extent, you'll make up with your creditors, okay? So I'm just saying overall, if I take the net working capital, it should be about 70-75 days. Thanks, so that's helpful. And secondly, on the tax rate, so, from next year onwards, what kind of ETR and also cash taxes we can expect? The ETR would be roughly around 25%-27%. Yeah. Cash tax would be very close to that only. Okay, sir. Thanks, and all the best. Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to Mr. Utkarsh Gandhi for his closing comments. Yeah, thanks, thanks, Lizanne. So before we end the call, we'll just read out the disclaimers. The discussion during this call, including information, statements, and analysis describing the company or its affiliates, objectives, projections, and estimates are forward-looking statements. These are based on current expectations, forecasts, and assumptions and are subject to risk and uncertainties, which could cause the actual outcome to differ. So, the discussion should not be regarded by recipients as a substitute for their own judgment, and the company undertakes no obligation to update or revise any forward-looking statements, whether as a result of any new information, future events, or otherwise. With that, we can close the call. Thank you, everyone, for joining us today. Thank you, members of the management team. 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.