Ladies and gentlemen, good day and welcome to the Ipca Laboratories Limited Q2 FY25 conference call hosted by DAM Capital Advisors 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nitin Agarwal from DAM Capital Advisors Limited. Thank you, and over to you, sir. Hi, thank you, Adana. Hi, good afternoon, everyone, and a very warm welcome to Ipca Labs Q2 FY25 post-earnings conference call hosted by DAM Capital Advisors Limited. On the call today, we have representing Ipca Management, Mr. AK Jain, Joint Managing Director, and Mr. Harish Kamath, Company Secretary and Company Counsel. I will hand over the call to Mr. Jain to make the opening comments, and then we'll open the floor for questions. Please go ahead. Thanks, Nitin and DAM Capital, for organizing this call. Today's call and discussions and answer given may include some forward-looking statements based on our current business expectations. It must be viewed in conjunction with the risk that the pharmaceutical industry business faces. Our actual future financial projections may differ from what is predicted and pursued. You may take your own judgment on information given during the call. Business performance: Domestic formulation business delivered a growth of 11% for the quarter. In late September 2024, Ipca ranked as the 16th player as per IQVIA and is the fastest-growing company among the top 20 players. Ipca has outpaced the industry in Q2 FY25 and MAT September 2024. Overall, IPM growth is around 8%, and Ipca has delivered almost around, as per IQVIA, 13% growth, and MAT September 2025, IPM growth is around 8%, and Ipca has delivered around 14% growth. Both on acute and chronic segments, Ipca has delivered better growth compared to the market. Acute segment, this quarter has grown by almost around 7%, and Ipca growth is around 12%. And on chronic segment, market growth is around 10%, and we have delivered around 17% growth, as per IQVIA. Ipca continued to improve its market share. In Q2 FY25, our market share has increased to 2.14%, as against 2.04% in Q2 FY24. And end September 2024, our market share is around 2.03%, as against 1.92% in end September 2023. So overall, there is almost around 11 basis points improvement in the overall market share. And in second quarter, the improvement is almost around 10 basis points. We have now six brands among the top 300 brands in the IPM. CTD-T has now entered in the top 300 brands list with the 193rd rank in September 2024, with 88 rank gains. On export formulation business, we have delivered around 15% growth for the quarter. The branded promotional business has declined by around 2% in this quarter. Branded business has grown by around 8%. Institutional business in this quarter has grown by almost around 85%. Overall, business growth has been around generic business. Business growth is around 15% overall for the quarter. Overall, API business has declined by around 5%. Domestic business has recovered and delivered a growth of around 14% for the quarter. API export business has continued to show some kind of decline. Overall, API business for the quarter is around INR 319 crore, as against INR 335 crore same period last year. On the margin front, our standalone margin for the Q2 EBITDA margin is 22.89%, against 20.86% same period last year, an improvement of almost around 2.03%. Our consolidated EBITDA margin for Q2 FY25 is at 19.10%, as against 17.64% for Q2 FY24, an improvement of around 1.46%. The improvement in the margin is largely due to improvement in product mix, lower input cost, and lower manufacturing and other overhead. Both the standalone and consolidated EBITDA margins are better than the guidelines given for the FY25. Having given the broad numbers, now I request participants to ask questions. Thank you very much, sir. We will now begin the question and answer sessions. Anyone who wishes to ask a question may press star and one on their touch-tone 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 from the line of Kunal Dhamesha from Macquarie. Please go ahead. The first question in terms of. Mr. Kunal, your line is breaking. I would request you to please repeat your question. Is it better now? Yes, Mr. Kunal. Please proceed. Sure. So, So, sir, the first question on the FY25 outlook that we had provided earlier on the consolidated top line and EBITDA margin, if you can update us after H1 performance, what are your revised expectations for the full year 2025? Some of the banks in the recent conference have also. Okay. Hello. Is it better now? Kunal, background also some voices are coming. Yeah. Sorry, sir. Sorry, sir. Is it better now? Yeah, it's better now. Sure. Sir, I just wanted to ask, we had provided some guidance on top line and EBITDA margin on a consolidated basis. With the H1 performance behind us, what would be your updated expectation for FY25? If you look at our margin funds, our guidelines for standalone margin was around 21%, as against that. I think, yes, incrementally. We have delivered around 22.89%. And therefore, overall, for the full year, overall, your standalone EBITDA margins are likely to be around 22% as against the 21% guideline. And similar line, the overall consolidated margins will also be better. Overall, growth projections given for the whole year was around 10%-11%. As against this, for the whole of the financial year, we will have a growth of almost around 9%-10% now. Okay, so probably at the absolute EBITDA level, more or less the same because lower top line and margin. A little lower top line. Yeah. Sir, for the Unichem business, in terms of synergies, where are we in terms of achieving those synergies? What have you already realized in these results in the last couple of quarters, and where do we see that going in the next three or four quarters? Sir, when we have taken over, we have spoken about many synergies part. As far as your Unichem sourcing product from us, it's still going on. That sourcing has not started. This will also have some kind of cost reduction for them for view of our API, which they are currently buying from outside. And I think it may take around five, six months more. So in current year, practically nothing of that nature will happen. We also talked about Unichem's improvement in the API processes, where I think almost around six products we have reduced overall their manufacturing cost and validations are over. Now, the process of, and in all these six products, the improvements are almost around somewhere between 25%-30% reduction in RMC process. Now, the whole process of filing and then taking approval and that will start. But six product improvement is already done, and the balance is in pipeline already. As far as the procurements are concerned, a lot of benefits have already come as buyings are now taken up by the common group. And whatever Ipca benefits are there in terms of lower your pricing, that all got extended to the Unichem also. So those advantages come. As far as market extensions have come, a lot of work is in pipeline, and we said that it's going to take a little longer time because it's cost of validation, then stability studies, and then filing in the market and all that. So this may take one more year for that kind of things to start. Only the products where no further bioequivalence are to be done, and wherever straight away your US DMFs can be filed in Europe and various other markets. That process is going on right now. A few products are already filed. These approvals are yet pending. Larger product range to extend to the other market is going to take another almost around one more year because it's all regulatory process and a lot of data needs to be generated. But our initial calculations where we were talking that on the second year onwards, we should be able to get around INR 600 crore kind of EBITDA margin. I think that will surpass in the current year itself. In the first half of the current year, the EBITDA margin of Unichem is almost around INR 113.75 crore. So for the first year itself, we will, and all these improvements will keep on coming as the filing done, as the approvals are received and all that. So that process is going on. Sure. And sir, last one, if I may, how is our own US business shaping up now since we have the plant clearances? Have we launched any products? And how is the uptake on those products? I think overall, we have spent almost around up to September around INR 30 crore worth of goods to the US, but most of the goods have reached to them at the end of the period. I think they are hardly out of that, almost INR 1.5 crore sales have happened, selling for all in stock, and now sales will start reflecting from the third quarter onwards. So practically, it's got eliminated in consolidation, practically. So nothing major has happened. We already sent three products, and another three are in pipeline. So I think current year, we will launch almost around six products. These U.S. sales will be recognizing in our PMS directly, or will recognize through Bayshore? No, we have said that Bayshore entity, whatever business is there, that got transferred to the Unichem because in order to have entire synergy, that U.S. business will be done entirely under one umbrella. So since Unichem is having bigger business, all these Bayshore business is already transferred to Unichem. And Ipca business will also be done through Unichem. So there are no duplication of the whole marketing and administrative and all those kind of setup. It will be all done through Unichem. Yeah. Thank you, sir, and all the best. Thank you very much. The next question is from the line of Dharmil from Dalmus Capital Management LLP. Please go ahead. Hi. Thank you for taking my question and congratulations on the setup number. Mr. Dharmil, may I request you to please speak up? Your voice is coming out as muffled. Is this clear now? Yes. Please proceed with your question. Yeah. Thank you for taking my questions. My questions are again on Unichem. Earlier in the previous call, you had given a guidance of around INR 2,000 crore revenue, while in H1, we have done somewhere around INR 900 crore. So is the guidance still on the plan? Or I mean, where are we up to on the guidance? Is it still achievable for FY25? I think overall business of Unichem may remain around INR 1,850 crore-INR 1,900 crore in the current financial year. Got it. And EBITDA margins? EBITDA margins, let's say first quarter was almost around 12.52%. Second quarter, it has improved to 14.35%, and overall, I think it will remain 14%-15% for the remaining period. Got it. And the 11% revenue growth in the current quarter for Unichem, can you break it down into how much was it volume-driven and how much was price-driven? And in general, what is the pricing scenario for? Pricing-wise, if you see that there is a margin of decline there, so pricing is hardly 1.5% kind of price declines are there. So overall, I'd say US business has grown by almost around 12%, 12.5%. There is some decline in Brazil, and overall contract manufacturing business has done well. So overall, for the second quarter, if you look at the overall on consolidated sales, it's almost around 9.4% improvement is there in current. And taking into the other operating income and other things, including it's around 11% kind of overall growth is there in the fourth quarter. Understood. And what would be the current capacity utilization in Unichem? And how do you expect it to ramp up over the next two to three years? Let's say overall, unit one and unit one at Goa and I think Ghaziabad, both these plants are having good capacity utilizations, maybe around 70%-80% kind of utilizations are there. Unit two, Goa, which is a bigger unit and larger capacity, that's I think hardly around 20% kind of utilizations are there. So as the US business and other businesses are extending the market of Unichem's product in various markets and filings and all that, that's the capacities of Goa plant will be utilized. As far as Ghaziabad plant is concerned, as far as Baddi plant is concerned, that utilization is almost around 30%-35%. So those capacities, and that plant is having all other approvals of all the ROW market, European approvals, and Australia, New Zealand. So there are so many markets they have approvals and all that. Understood. And what is the trend in terms of product approvals in Unichem? Are there any pipeline of products to be launched in the next one or two years? I think we will continue to launch around four to five products every year. Okay. And this would be entirely formulations on its own? Yeah, formulations, yeah. Okay. And what would be your revenue guidance for FY26 and FY27 for Unichem? So far, we have not worked it out. So we will let you know in the last quarter of the current financial year. Okay. Thank you so much and best of luck. Thank you very much. The next question is from the line of Surya Narayan Patra from PhillipCapital India Private Limited. Please go ahead. Yeah. Thank you for this opportunity. Sir, my first question about the US business. First of all, can you give some update about the Piparia unit as US FDA compliance? That is one. And secondly, after the integration of the Bayshore Unichem with us, and the way it has already been indicated that US business is going to happen through everything through Unichem. So while we are seeing a kind of strong export growth number for Unichem, but Ipca's export growth has been muted consistently. So how should one think about the US business going ahead for Ipca impacting the growth numbers? That would be the question about the US business. Compliance of Piparia and the growth in the US side? All plants here already received the approvals, and also there is no pending issue as far as Piparia plant is concerned. All Ipca plants are cleared already, which includes Piparia plant. So there is absolutely no outstanding issues anywhere. Okay. All the three units are cleared now? Yeah. All three units are cleared simultaneously, yeah. Okay. Regards to the US business, since now everything is going to be routed through Unichem, and in terms of the performance so far, what we have seen in the recent quarters, Unichem is doing well. But our growth numbers are on the export side still remaining muted. On the formulation side, can you just clarify what is really impacting here for us? As far as the branded formulation business is concerned, we have muted growth. In fact, in the first half of the current year, we have minus 2% growth on branded formulation. So that is largely because of all these currency fluctuations. And I think ruble from 80 level has gone to almost around more than 95. So that has reflected on, and a good amount of business comes from that market, Russia and all. So that has a little impacted. I think from third quarter, I think in ROW market, we expect around 12%-13% kind of growth. So all of the year, the business growth in ROW will revive, and it's likely to be around 7%-8% kind of growth for the whole of the year. So as far as your ROW market, branded formulation. Branded formulation. Okay. As far as your generic businesses are concerned, by and large, let's say, as far as the European businesses are concerned, except UK, that business is good, and we have reasonably good growth. We should have almost for the whole of the year around 10% kind of growth. UK, there are certain concerns coming on pricings and all and overstocking in that market. So probably this year, UK business growth will remain muted only, or there may not be any growth in that market. So that's the picture. As far as Canada business is concerned, that business will have around 10% kind of growth. Australia, New Zealand, in the first half was because of some supply kind of constraint on certain APIs, and that has impacted the business. So we expect the recovery because those shipments have started coming from outsourced APIs. So there will be recovery in those markets. As far as overall South Africa is concerned, we will see some kind of decline there because some tenders are lost there, and that business will have some kind of decline. So overall, we see a generic business, your branded business to grow by around 8%-9%. Generic business will also have a similar kind of growth. Institutional business will have a better growth this year because last year, the availability of your injectables because of plant upgradations and installations of some additional machines and renovation parts. So for half of the year, that plant was not operating. So this year, there will be better growth in those businesses. So overall, generics, we will see around 12% kind of growth for the whole of the financial year. So this institutional business, this quarter bump up, what we are witnessing, it is not a one-off thing. It is a sustainable. Last year, in this period, injectables were not available. Okay, so now this is a kind of sustainable business and can see ramp up. Yeah, yeah. Okay. Regarding R&D, now after the integration of the US business with Unichem, how do you think about your Ipca's R&D versus Unichem R&D? Unichem R&D, let's say they were doing some work on Biotech. That's completely stopped. They will continue to do work on formulation development for US market, and Ipca will also do. So the lift will be some product they will keep on developing, some Unichem will keep on developing, some product where synergies are better in terms of our API basket. We will continue to develop. So both the teams will work on process development. In fact, in the current quarter, we are seeing a significant lower number for Unichem in the other expenses which generally captures the R&D. So hence, that is why we wanted to have some clarity. What is the kind of saving that we are seeing, whether it is from the reduced R&D spend on the Unichem side, or it is something else? R&D of base is almost around 3%. Overall, the 3%-3.5% will continue to be there. And overall R&D spend is also around 3% of the turnover for the Ipca and Unichem put together, consolidated numbers. More or less, it will remain once the biotech plant gets commissioned, which may happen during, I think, in the end of the current financial year. Thereafter, once we start producing the batches and then clinical work, and then the next financial year, overall R&D cost may go up to around 4%-4.25%, yeah. Okay. Just last question, sir, from my side is. Mr. Surya? May we request that you return to the question queue for follow-up questions as there are several other participants waiting for their turn? Yes. Sure. Thank you. Thank you very much. The next question is from the line of Arun from FPPL. Please go ahead. Yeah. Thank you for this opportunity. I hope you are hearing me well. Yes, Mr. Arun. Hello. Please proceed with the question. Yeah. Fine. See, I just wanted just a few short questions and probably some short answers as well. See, the PAT comparison, can you do sort of a ballpark figure as to how do we compare with domestic versus international? Because the revenues is split as almost 50/50. Regarding the PAT, what is the percentage of domestic PAT, and what is the percentage of international PAT, profit after tax? Normally, if you look at, we don't divide that way, but we monitor the overall gross margin levels, and if you look at gross margins, we have better gross margins in ROW market compared to India market. The next business line is from gross margin wise is India business, India formulation business. Then comes the business which we do in Europe, Australia, New Zealand, and Canada. Gross margin thereafter, I think South Africa are lower, and U.K. also gross margins are lower. And last comes is the API. So overall, we have highest gross margin ROW branded. Next is your domestic formulation, and we have good overall margins in generics also. Thank you, sir. Sir, regarding the domestic formulations, in fact, I was referring to only the last quarter's performance where your 52% comes from anti-inflammatories or NSAIDs, which is presumably Zerodol. Don't you think that there is an overdependence on one product, or is the company planning to also develop some products which could probably give a balance? Let's say pain management constitutes of it's not NSAID only. It's completely pain management. So pain management has two segments. One is rheumatoid arthritis and osteoarthritis. And rheumatoid arthritis consists of a large number of products, and there we have disease-modifying agents that are marketed. They are more chronic than even cardiovasculars, but they are classified as acute. And rheumatoid arthritis, we have very strong leadership. We have more than 60% market share. And every product we market, we have market leadership. So that is also clubbed with the pain management group. So it's not overdependence. Every product has leadership in your segment where we have a good number of products marketing for rheumatoid arthritis. As far as your osteoarthritis and those segments are concerned, yes, Zerodol is the flagship brand there. But apart from that, also we have a good number of other brands there, which is like a brand which is for Etodolac, is another drug, and Pacimol is marketed in the brand name of Pacimol, and there are other brands there. And they also have significant market share. So it's not only one product which is concentrated. Zerodol is not the only product in pain management. So it's a completely risk diversified there. Thank you, sir. Just one more question, if you can allow me. Have the revenues of the 180 exclusivity started churning? Does it come into the Ipca, or does it go to the Unichem? Because we have approvals of Lamotrigine, Etodolac, Alendronate, Risperidone, and Levocetirizine and all. Have these molecules started, generics started yielding revenue, or will it come reflect maybe in the near future? Some of those molecules, Unichem is already marketing in the U.S. Okay. Okay. Yeah. Etodolac is Ipca products, and that will be launched, I think, maybe end of the year. So it may be, I think we have already shipped three products, and another three are in pipeline. So last will be Etodolac. Okay, sir. Thank you very much, sir. Thank you. We can move on to the next question. Thank you very much. The next question is from the line of Nirali Shah from Ashika Stock Broking. Please go ahead. Hi. Thank you for the opportunity. I just have two quick questions. So first one is on the launches. So we have been planning to launch almost around five to six products in FY25. So if any color on these products, what therapies are we trying to target? What geographies are we trying to target? If you could give some flavor on how it will contribute to our top line, any numbers, any ballpark number, and if not that, then the market size of these products. So any meaningful opportunity, any data on this would be helpful. Yeah. As Mr. Jain has already explained, three products we have already shipped to Unichem, and it has landed in the US. So whatever primary sales we have done, it got knocked off in consolidation because that product is not moved to the market. So there will be always a gestation period between the time we shipped to the US and those products started getting marketed. So by the end of the current financial year, we should be launching about six products in the US market. That is what is our target. And whenever we were there in these products in the earlier time, we used to have a very good market share. But gaining market share will take some time, but we are very confident these products will do well as it was earlier doing. What kind of market share are we targeting? For example, when I was in the U.S. maybe 10 years back, in most of these products, my market shares were anywhere between, say, 20%, and in one product it was 80%. Okay. That is helpful, and say, for example, from a two-year perspective, we plan to launch around 15, 13-15 products. So how are we planning out on that? We will be shipping six products to Unichem US. Maybe identical number in the next financial year. Okay. And. Unichem itself also will be launching five to six of their new molecules in the US market in the current financial year. Understood. And my next question is, what could be a possible growth driver from a two-year perspective? Which geography do we see to be contributing the highest and followed by? So basically, my question is, what could be our possible growth drivers in terms of geography? Practically, Ipca sales in the U.S. today is currently zero. So you will see a very good growth in Ipca products being sold in the U.S. market going forward in the next three to five years. Similarly, one more opportunity will come. We will be taking Unichem products in all other markets where earlier they were not marketing, like ROW market, whole of Europe, Australia, New Zealand, Canada. So Unichem will also benefit out of that. So as an entity, Ipca Group will see a very good growth going forward in the generic formulation business. Understood. Just a last one, if I can squeeze in. On the supply chain issues, so are we still facing any disruptions that persisted in Australia and New Zealand? No, madam. Nothing as such. No issues. Okay. Great. The problem was there in the second half of the last financial year, non-availability of one material, which we already got in the current financial year, and the business has already started. So as we speak, there is no problem as far as material-related issues. There is no issue. Okay. That's it. Thanks. Thank you very much. The next question is from the line of Kunal Dhamesha from Macquarie. Please go ahead. Hi, sir. Thank you for the opportunity again. On this U.S. business arrangement that the U.S. business or Ipca's U.S. product will be sold by Unichem, will there be any transfer pricing be there wherein Ipca will account for some profitability given our stake in Unichem is around 70%? So how do the economics basically work out for us when we sell our product through Unichem? Kunal, if you recollect, whenever we were earlier there in the US market, it was on a similar line, correct? Our products were marketed by other marketing partners on a profit-sharing arrangement. So similarly, Unichem operation will be done. So we will sell our product to Unichem US. There will be a margin in our sales. And US level, there will be profit-sharing arrangement also, both. And most of these products are also backed by our own API, so there will be some benefit out of API manufacturing also. Sure. Understood. And on the generic business revenue, Jain sir told that the growth guidance of around 12%. Is that for the remaining part of the year? How should we think about it? Yeah. For the second half of the current financial year. But overall, including the first half and second half, the generic business should grow anywhere between 10%-12%. But sir, generic business first half is only 2% growth, right? So then it. I understand because the shipment what Ipca did to Unichem US. So because it was still remaining as a stock in Unichem hand, it has got knocked off in the consolidated business. I am talking here consolidated business, not standalone. Correct. So probably INR 30-60 crore additional, and then there is a base business growth. Is that the way to understand? You would have sent maybe one quarter inventory? Yeah, yeah. That is right. Yes. Okay. Sir, just one on the India business. What's the current sales force in the India business? And after addition, how is the productivity coming along for the India business in terms of sales force? We currently have about 7,000 medical reps in the field, and whatever guidance we had given earlier, all the additional people are contributing in the same way what we initially thought. There is no issue, absolutely, so they will become productive division-wise between two to three years. Two to three years. And some division productivity will be faster than the other divisions like cardiac and all. So as per our plan, everything is moving. There is no issue. Okay. And if you look at around INR 4.62 lakhs for the first half of the current compared to INR 4.36 lakhs in the last financial year, so overall, there is a good improvement in overall productivity in spite of addition of the people. Sure. Thank you and all the best, sir. Thank you very much. The next question is from the line of Zain from Dolat Capital. Please go ahead. Hello. Hello. Are you there? Yes, yes. Thank you for the opportunity, sir. Just want to ask a question again. In the US business, can you please repeat the guidance for the business for FY25? Which one? I think you are not. Institutional business. Voice is breaking. Yes, sir. Hello? Yeah. Am I audible now? Yeah. You are audible now. Yes. Yeah. So I want to know, sir, about institutional business guidance for FY25? See, we have earlier also explained this institutional business consists only of antimalarial formulations. So this business will fluctuate anywhere between INR 300-400 crore going forward. Okay, sir. I'm talking annual business. Okay. And sir, what India business guidance for 25? So whatever guidance we gave in the beginning of the year, anywhere between 11%-12%, we stand by that. There is no problem. Okay, sir. Thank you. Yeah. Thank you very much. The next question is from the line of Tushar Manudhane from Motilal Oswal Financial Services. Please go ahead. Sir, thanks for the opportunity. Sir, just with the earlier comment of the pecking order of the gross margin, so just a clarification. So even at the EBITDA margin level, would the ROW branded generic should be higher than domestic formulation? Yes, yes. Even at EBITDA level. Okay. So secondly, with respect to relaunches of the products from Ipca's plant, excluding Unichem products, basically. So since it's almost what, now, eight, nine years, so the price erosion in the products which we are supposed to launch, compared to what we were there in 2013, 2014, what kind of price decline would have happened in those products, specifically the ones which we are going to relaunch? We don't see any price decline in them. So price was. Why is that? Why is there no price decline? Better than what it was when we were there in the market 10 years back. Oh, interesting. I mean, was it because the people have I mean, the companies have exited, sort of reduced the competition, or if you could throw some light? In these products, we were having a very big market share. The moment we went out, the prices increased. They have moderated, of course, subsequently, but still it is now better than what it was 10 years back. Okay. So considering these launches and subsequently in FY26, so specifically Unichem, specifically Ipca X Unichem, what kind of U.S. sales one can expect in FY26, if you can share? It is too early to give the combined sales of Ipca plus Unichem as a group in the next financial year. As we progress, maybe in the subsequent phone call, we will give the guidance. But whatever we said in the beginning of the year, our plan of launching six to seven molecules in the U.S. in the current financial year, that is progressing as we anticipated. Okay. And then lastly, on generics exports business, again, the first half numbers look lower, but then the base of second half FY24 is also low. So that way, then 12% will be still a good enough number because even if I go by the run rate of what we have done in Q2, the growth would be really strong in second half FY25. I agree, but everything ultimately depends on what kind of market. See, the US business, what we speak, the market share improvement will be gradual. It is very difficult to comment how much market share we will get in the immediate in the second half of the current financial year for the products which are already launched. All that permutation combination and question marks are already there. That is why we will give fair guidance in the later half of the current financial year, maybe in the fourth quarter phone call, what we are expecting in the next financial year as far as the US business is concerned. Current year, our generic business should be anywhere between 12% - 15%. That is what is the guidance. Even if I go by the. Yeah? Even if you go by the generics exports for the current quarter run rate, when your U.S. product launches will be additional over and above this, still the numbers look quite strong for second half FY25. And there are challenges, as Mr. Jain has already said, in the South Africa where we lost certain tender products and in the UK market. Considering all that, we are giving a muted guidance. If the situation improves, we may do better than what we are committing. All right. Thanks. That's it from me. Because in the last year, second half, there was very good business from South Africa market, which looks today difficult. Got it, sir. Okay. Thank you. Thank you very much. The next question is from the line of Arun from FPPL. Please go ahead. Just trying to understand the protocol. See, it's a product which is approved by the U.S. FDA in the Orange Book for Ipca. And still, it can be taken for marketing and distribution by Unichem. Is it possible, or is it being done? How is it? It is possible. Earlier also, whatever products which were approved in our name, they were getting marketed by other marketing partners. Every company does that, and it is the practice in the U.S. market. Oh, thank you very much, sir. In fact, I was thinking that products so that means only the manufacturing is the one which is the key, correct? Yeah, yeah. Manufacturing has to be from the site from where the product has got approval by US FDA. That is the only requirement. Marketing can be done by any other company. As far as Ipca is concerned, we have only Silvassa and Indore, which have the US approvals, correct? The other six don't have. Formulation facility, Silvassa and Indore. Indore. And API facility, Ratlam. Ratlam. Okay. Is there any moves to make upon Kandla? There There are then Sukin Manol. US. It's purely for domestic market. From Kandla, we also cater to all other markets other than U.S. Europe, Australia, and all, we are catering from Kandla. It is a better left-hand facility. We are satisfying all the observations of US FDA, correct? Yeah, yeah. We have nothing outstanding as far as US FDA matter is concerned. Okay, sir. Thank you. Thank you very much, sir. Thank you very much. The next question is from the line of Kunal Dhamesha from Macquarie. Please go ahead. Thank you for the opportunity again. Sir, just one clarification. You said that the next business guidance would include our US revenue which we have supplied. But then doesn't that US revenue would flow through subsidiary which is Unichem? No, but ultimately, it will get consolidated in my account because Unichem also is my subsidiary. No, no, sir, but then like to like, there is a confusion, right? The generic business has grown at 2%. We are guiding for 12%, and then we might end up doing double counting. That 2% growth was standalone Ipca, and guidance is for consolidated business. Ultimately, everybody will see consolidated business. For example, standalone business. I have done some sales from Ipca to Unichem, which is booked in my books. But that material just reached US, and it has not gone to customer. In the consolidated, it gets knocked off. So consolidated is more important than standalone. So as far as generic business is concerned, better let us go by consolidated guidance. Okay. So, sir, would you at some point, would you change our segment reporting so that it helps us understand the businesses better? Because I think Europe is also now sizable business for us, right? Right, right. Kunal, what has happened, actually? The issue is confusion. We took over Unichem in the last financial year in the month of August, so anything we talk today is not comparable apple to apple because last year, consolidation of Unichem started in our books only from the month, say, from September, so last year, consolidation of Unichem was there only for one month and few days. Whereas current year, it is there for all six months. Okay. Correct. In the next financial year, the apples-to-apples comparison will become clear, and we will be giving guidance market-wise, consolidated guidelines. Okay. As far as the generic business is concerned. Okay, and our consolidated top-line growth guidance for this year is around 9%. Is that correct? Yes. Yeah. All the business included. Correct. Right. Okay. Thank you for the clarification, sir. Thank you very much. The next question is from the line of Harshit Dhoot from Dymon Asia. Please go ahead. Hi. Am I audible now? Yes, yes. Yes, Mr. Harshit. Thanks. Yeah. Thanks for the opportunity, sir. My main question was on the other expenses. We have the tender business in which gross margin is directly playing to EBITDA. Our domestic productivity has increased a lot. Then still, the yield is a bit high. You see the way the business is getting tendered. So is it fair to assume that this 27% I'm talking about on consolidated, this 27% other expenses generated will continue going forward? See, again, I said consolidated numbers are not strictly comparable because last year, consolidation Unichem numbers were there only for one month and few days. This year, it is for all six months. So that confusion will be there in the current financial year. From the next financial year, everything will be comparable apples to apples. For example, in the current financial year, six months, my other expenses also include entire six-month expenses of Unichem. Whereas in the last financial year, six months, it was only for one month and few days. So you can't compare that. No, no. Well, I see the sequential basis also, right? INR 574 crore-INR 637 crore. INR 637 crore adjusted with the forex losses. So I just want to understand the guidance for the SG&A for these other expenses going forward. So I just want to understand how this operating leverage balance will play out as we are focusing a lot on the. You can take whatever rate of other expenses in the consolidated first quarter and second quarter figures are there. More or less, it will continue. Don't see anything about last financial year. Current financial year, first quarter, second quarter, other expenses are all there. There is no exceptional expenses in that. That will continue. Okay. Thanks, sir. Thanks a lot. Thank you very much. The next question is from the line of Kunal Randeria from Axis Capital. Please go ahead. Hi. Good evening, sir. Sir, the October IQVIA data for India show that the growth has slowed down around 6%. So do your internal numbers also show a slowdown? No, we are growing as whatever we have projected. And all of the year, our growth will be anywhere between 11%-12%. All right, sir. And just to kind of reconfirm, it's a broad-based growth, right, and not driven just by the pain franchise? No, no, no. No, no. Nothing, nothing. When they were showing 15, 16%, 20% growth also, we are growing around 11%- 12%. Okay, sir. Got it. Thank you. Thank you very much. The next question is from the line of Shiva from Purnartha Investment Advisers. Please go ahead. Hello. Am I audible? Yes, yes. Yes, Mr. Shiva. Yeah. Thank you for the opportunity. My first question is with respect to the U.S. thing. Earlier, when we were in 2013 to 2015, what was our total revenue in U.S. at the time? And if you could split between what was for formulations and API, what was the profitability at that time? See, our total U.S. business that time was around INR 400 crore, including about INR 150-160 crore API business, and in both formulation and API business, including the share of profit, we had a very good EBITDA margin. Okay. So it was comparable to the ROE as well? The rest of the market was in the top? Yes, yes, yes. Okay. Okay. Great. Thanks. And the second is with respect to your other businesses. Obviously, it's like if I just calculate, it was somewhere around INR 80 crore. Obviously, you said last time that you were working on that and you are seeing some progress. Over the last few quarters, it's been at INR 90 crore and INR 80 crore subsidiaries revenue. Earlier, it was slightly higher. If you could just throw some light, how is the progress over there? And going ahead, how do you look at your subsidiaries revenue? This is excluding Unichem. Subsidiaries, one is Trophic Wellness, which is doing reasonably well, around 10-12% top-line growth and maybe 15-20% bottom-line growth. Trophic Wellness, which is into nutraceutical business. Then other subsidiaries, Onyx Scientific, which is into CRAMS business and it is based out of U.K. There also the business is steady. This year, they have a certain issue about discretionary spending coming down in the market. But still, they will sustain their operation. Only subsidiary, which is now not delivering, which going forward should do better, is Pisgah, which is out of U.S. They are also partly into CRAMS and partly into small-scale API manufacturing for the U.S. and other market where certain projects are going on. So these are our operating subsidiaries. Apart from that, we recently started marketing our own products in the U.K. market through our own subsidiary, Ipca U.K. These are major subsidiaries which are into business. Okay. Thank you. Thank you. Thank you very much. The next question is from the line of Zain from Dolat Capital. Please go ahead. Hello. Thank you for the follow-up, sir. Am I audible? Yes, yes. Just one question from my side. Generic business guidance excluding Unichem is for FY25? Excluding Unichem. So it will be around maybe 8% or so. For the full year? Yeah. Ipca standalone. Okay. Yeah. Thank you, sir. Thank you. Thank you very much. As there are no further questions, I would now like to hand the conference over to the management for closing comments. No, nothing. Nothing from our side. If there are no further questions, I think we can close this phone call. And thanks to all the participants for attending this phone call organized by DAM Capital. Thank you all. Sure, sir. Thank you so much. On behalf of DAM Capital Advisors Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.