Ladies and gentlemen, good day and welcome to Mankind Pharma's Q2 H1 FY25 earnings conference call. 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 the star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Abhishek Agarwal from Mankind Pharma. Thank you, and over to you, sir. Good evening, everyone, and a very warm welcome to our Q2FY25 earnings conference call. On the call today, we have Mr. Rajeev Juneja, our Vice Chairman and Managing Director, Mr. Sheetal Arora, Chief Executive Officer and Whole Time Director, Dr. Sanjay Koul, Chief Marketing Officer, Mr. Ashutosh Dhawan, Chief Financial Officer, and Mr. Prakash Agarwal, President Strategy. I hope you had a chance to review the investor pack already uploaded on our website a couple of hours back. We will begin with Mr. Rajeev Juneja, sir, providing an overview of Q2FY25, followed by detailed insights from Mr. Sheetal Arora, sir, on our business performance. Mr. Ashutosh Dhawan, sir, will then cover our financial performance, and after that, we'll open the floor to our questions. Please note that some statements made on today's call may be forward-looking. For a full disclaimer, please refer to the investor presentation and press release available on our website. Now, I'll hand over to Rajeev, sir, for his comments. Thank you, Abhishek, and good evening, everyone. A very warm welcome to our Quarter Two and H1 25 earnings call. I'm delighted to share with you all that we have now successfully acquired Bharat Serums and Vaccines Limited. This acquisition is a significant milestone as it perfectly aligns with our vision to expand into high-entry barrier production, women's healthcare, a niche critical segment. It also positions us as the number one player in the gynecology segment and further strengthens our research and development capabilities with improved technology. While many see this as a transition to biosimilars at Mankind, we see it as an inspiring beginning of a new journey together as one family of around 25,000 employees with BSV. On the quarterly front, in Quarter Two 25, our revenue increased to INR 3,077 crore, registering a growth of approximately 14% year on year and a healthy EBITDA margin of 27.7%. In the first half of FY 2025, revenue increased by 13% year on year with an adjusted EBITDA margin of 26.5%. Our chronic share increased 120 basis points year on year to 36% in the first half of FY 2025 as compared to 34.8% in H1 2024, driven by continued outperformance of 1.3x to IPM chronic growth. In Q2 2025, our domestic growth grew at 11% year on year, consistently outperforming the IPM growth driven by volume and chronic outperformance. In this quarter, our market share by volume has also increased to 5.9%, driven by a healthy volume growth of 1.3% as compared to IPM volume growth of 0.4%. With our commitment to provide affordable quality healthcare accessible to all, we now have 200 plus GMP grade products, of which more than 90% is in the chronic segment. Moving on the consumer healthcare business, we believe this business has a huge potential, and hence we have carved out our OTC business to a wholly owned subsidiary of Mankind Pharma, which sets this business for the next phase of growth. On the R&D front, we remain committed to product innovation and establishing strategic partnerships with innovators to enhance our product portfolio. Additionally, BSV Complex R&D tech platform will bolster our product presence in highly complex, innovative, recombinant biologics, hemoglobin, and complex delivery products. In the last quarter, we laid a strong foundation for our next phase of growth by developing multiple growth levers, a resilient base business, a rapidly growing specialty chronic segment, high potential OTC business, and now a super specialty portfolio of BSV. We believe strongly that the best of Mankind is yet to come, and now I invite Sheetal to provide more details on our business performance. A very good evening, and I thank everyone for taking your time and joining us on our Quarter Two Financial Year 25 earnings call. As Rajeev Ji emphasized, our strategic acquisition of BSV expands Mankind's presence in high-entry barrier segments, both in India and emerging markets. Specifically, their women's health and niche critical care products present significant opportunities supported by favorable market trends. We believe this acquisition will further support revenue growth and improve EBITDA margins, allowing us to unlock new opportunities and strengthen our product portfolio. This acquisition is financed through a mix of debt, equity, and internal accrual. We may consider retiring a portion of the debt through a potential equity raise, which is already approved by the shareholders, to maintain a net debt-to-EBITDA ratio below 2x by Financial Year 26. I want to extend my heartfelt gratitude for the overwhelming response for our recent debt raise. Trust is invaluable to us, and we recognize the added responsibility it entails as we move ahead. Following the closing of our transaction last week, both teams have begun collaborating closely to develop a comprehensive roadmap for the seamless integration of BSV. We anticipate its completion within the next couple of quarters and look forward to capitalize our potential synergies. As I talk about domestic business, let us start with our domestic business revenue, which increased by 11% year-on-year basis to INR 2,796 crore in the second quarter of Financial Year 2025, supported by volume growth and chronic outperformance. This quarter, we continue to maintain our number two rank in volume terms. Our consistent outperformance of 1.3 times in chronic growth compared to the IPM chronic this quarter was driven by resilient outperformance of 1.6 times in cardiac and 1.4 times in anti-diabetes, alongside recent strategic launch in chronic segments. As a result, our chronic share increased by 119 basis points on a year-on-year basis, surpassing 35% in Q2 Financial Year 25, commonly referred to as an acute heavy quarter. In contrast, the IPM chronic share increased 60 basis points to 38% during the same period. In line with our focus towards expanding specialty chronic, we have launched Inclisiran injection in-licensed from Novartis used for hyperlipidemia. We continue to be the leading player with the highest prescription share of 15.4%, reflecting the trust that doctors have on Mankind and our products' deeper market reach. Additionally, our prescriber penetration has also improved by 30 basis points, increasing from 83.2% in Q2 Financial Year 24 to 83.5% this quarter. About OTC, in the OTC business, our strategic initiatives adopted in the past are now largely implemented, and we have started witnessing strong growth in this quarter. In this quarter, revenue increased by 20%, reaching INR 232 crore as compared to INR 193 crore in the same quarter last year, driven by healthy growth across key brands supported with strong growth in e-commerce and Q-commerce channels. We are also witnessing strong traction in our recent strategic launches that is Manforce, Kinex, and Epic premium category condoms, Nimulid in pain management, etc. In international business, the revenue from export increased by 57% year-on-year and 8% quarter-on-quarter to INR 281 crore in Q2 Financial Year 25, led by increase in our base business and new launches in the last 12 to 24 months. Additionally, BSV's complex product portfolio of fertility, recombinant, critical care products, and immunoglobulins having high entry barriers will further strengthen our international product portfolio basket. Thanks to the dedication, passion, and customer-centric approach of our team, I am confident of achieving new milestones in the upcoming quarter. We look forward to upholding the trust our customers place in our products and wish to reaffirm our commitment to enhancing their quality of life. Now, I will hand over to Ashutosh Ji, who will provide detailed insights on finances. Thank you so much. Thank you, Sheetal Ji. Good evening, everyone. I'm delighted to have you all with us on our Q2H1FY25 earnings call. Let me give you a brief of the financial highlights of our quarterly performance for Q2FY25. Revenue from operations has increased by 13.6% year-on-year basis to INR 3,077 crore as compared to INR 2,708 crore in Q2FY24. During the quarter, EBITDA has increased by 24.3% year-on-year basis to INR 853 crore, with margins of 27.7% as compared to INR 686 crore, with margin of 25.3% in Q2FY24. The increase in EBITDA margin by 2.5% to 2.4% was largely due to 2.1% improvement in gross margin, and the balance is on account of operating leverage. The EBITDA margin for H1 FY25 is 25.8%, which is largely in line with our earlier stated guidance of 25%-26%. However, adjusted EBITDA for H1 FY25 is 26.5%. For this quarter, our gross margins have increased to 71.6% year-on-year basis from 69.5% in Q2 FY24. This increase is a combination of sale price increases and favorable sales mix, contributing 1.1%, and remaining 1% is towards favorable input costs as well as certain operational efficiencies. The R&D expenses for the quarter of INR 58 crore remained at 1.9% of sales, which is within the stated guidance of 2%-2.5%. Depreciation and amortization expenses increased to INR 106 crore as compared to 96 crore in Q2 FY24, and this is majorly due to the impact of capitalization of completed projects in the previous three quarters. The effective tax rate for H1 FY25 was at 20.8%, which is in line with H1 FY24 ETR of 20.6%. However, for the Q2 FY25, the ETR was 22.4% as compared to 20.3% in Q2 FY24 last year. The PAT increased by 28.9% to INR 659 crore during the quarter, with diluted EPS of INR 16.3 per share of INR 1 paid. Cash EPS, which is EPS adjusted for non-cash items like depreciation and amortization, was at INR 18.9. The net operating working capital base for the quarters has increased to 45 days as compared to 44 days in Q2 FY24. Further, in H1 FY25, our cash flow generated from operations was at INR 1,139 crore, which is on Y-on-Y basis increase of 18% from H1 FY24. Our cash flow to EBITDA ratio in H1 FY25 is 74%. Our CapEx spend for Q2 FY25 was INR 128 crore, which is 4.2% of the total revenue for Q2 FY25 as well as H1 FY25, and the same is in line with our guidance of 4%-5% of the revenue. Our net cash position has increased significantly to INR 4,255 crore as of 30 September 2024, which is INR 2,159 crore as of 30 September 2023. The return on capital employed excluding cash is at 35% level as of 30 September 2024 on a trailing 12 months basis. The return on equity ex cash is at 31% level as of 30 September 2024 on a trailing 12 months basis. Now, BSV transaction has formally got closed on 23 October 2024. Therefore, Q3 FY25 will have consolidated results of BSV for that partial period. Further, for the purpose of this acquisition, Mankind has raised INR 10,000 crore in debt, split into INR 5,000 crore on non-convertible debentures and INR 5,000 crore for commercial papers. With each component structured in three tranches, the composition of NCD is in three tranches of INR 1,250 crore and INR 1,250 crore and INR. 2,500 crore at a coupon interest rate, which is ranging from 7.97%-7.99%. The tenure of these NCDs is spread across 18 months, 24 months, and 37 months. The interest on these NCDs is to be serviced on a semi-annually basis. The commercial papers were raised in three tranches of INR 3,000 crore, INR 500 crore, and INR 1,500 crore at a coupon interest rate, which is ranging from 7.45%-7.85%, and the tenure of these CPs is spread across 91 days, 182 days, and 365 days. As Sheetal Ji has highlighted, we may consider retiring a portion of them through a potential equity raise, which has already been approved by the shareholders, and this EBITDA margin equity acquisition aligns with Mankind's goal of maintaining net debt-to-EBITDA ratio of below 2x by FY26, reinforcing its commitment to sustainable growth and financial discipline. So this concludes our opening remarks, and we are now happy to take any questions which you might have. Thank you. So over to you, Sheetal. Yeah, the forum is open for questions. Moderator, please do. Thank you very much. We will now begin the question and answer session. 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 handset 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 Neha from Bank of America. Please go ahead. My question. So my first question is on the India domestic formulation business. What is finality in? Sorry, sorry, can you please speak up? Can you hear me now? A little better. Okay. Let me try speaking louder. So for the India formulation business, just wanted to get a sense on how the seasonality was in this quarter because it seems like obviously chronic we have done very well. But is it fair to assume that this growth could have been better if we had a normal season? How was it versus your expectation? Hi, Neha and good evening. Rajeev here. You're right. I mean, this time the deep evaluation came a bit earlier than last year. This is one. Plus, one more thing we basically Mankind keep doing, and that basically is once in five years we go for deeper commercial excellence, and what's the meaning of that? Whenever in every five years we go for any place, we find a bit of inefficiencies are there. Things are not happening as per our own system. The productivity problems are there. We start working on that side. So that's I'd say a mixed reason for that. One is deep evaluation. The second, we don't shy away from working to really make our foundation strongest. So those things are there. So just to add on the seasonal side, I think we saw fairly decent seasonal both in terms of chronic and acute seasonal. Nothing much to call out. It's a regular seasonal for us. Okay. Understood. And just on the other expenses, we seem to have seen seasonally, if I look back, this quarter we do see a step up in other expenses if I adjust R&D. But this quarter, I know there is a one-off in first quarter, but even adjusted for that, other expenses seems to have come down meaningfully in the quarter one. So just wanted to understand, is there any saving we've seen there? Because I thought we were aiming we should increase the promotion spend, etc., operating leverage being better than we expected. So you are right in your assessment, Neha. So other expenses in this quarter, they have been pretty controlled. Last quarter, there were two effects. So one was there was an impact of one-off, a certain acquisition-related costs were there, not to BSV but some other. And second was the impact of apart from one-off, there was a we introduced four new divisions. So the Q1, there was a bulge in the expenses, which has normalized in Q2. Understood, and sorry, one last question on BSV. Now that we'll start integrating the asset, what are the milestones that we should look at in terms of margin improvement? I mean, when can we start looking at probably improvement in MR productivity, probably the insourcing that we talked about, scope for price increases? What is the scope for margin if you think about a one-year perspective or two years down the line based on your comfort of giving any margin guidance there? So Neha, as per last commentary, there are various synergy levers in the business. But first, we are just closed the transaction. We just started integrating it. Our focus is to improve the growth of the mandate brands both in India as well as internationally because we see that there's a lot of juice left. And if these products continue to see that kind of growth, the operating leverage will flow in because gross margins also are good for these kind of products. So apart from the base business growth in this, there will be a couple of synergies. One is in terms of MR productivity, as you rightly said, the RX business, the TTK portfolio. The MR productivity, as highlighted earlier, is much lower than the company average of BSV. So that's under three currently. We have some plans there that can improve significantly in the immediate to near-term to medium term. Secondly, there are manufacturing CMO kind of opportunities, plus a host of other things that would pan out in the next 12-24 months. Prakash, what would be the gross margin for the BSV asset? So gross margin-wise, I think on the consolidation is in the region of Mankind, a little lower than company average. But if the mandate brands increase, I mean, the mandate brands have upwards of 70% plus. Okay, but on a blended basis, it's slightly lower than Mankind? Currently, it's slightly lower, yeah. Okay. Thank you so much. Thanks so much. Thank you. Comparable to Mankind, shared better than Mankind. Thank you. Before taking the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Amlan Das from Nomura, India. Please go ahead. Hi sir. So my question is regarding the regulatory restrictions that you have written for the acute products. Could you please elaborate on that a bit? Regulatory restriction on acute products, yeah? Yeah. So there are two products in two therapies. So first one is Codistar, which we've been highlighting for the last four quarters. So there is some impact there in this quarter as well. Going into Q3 and Q4, the impact will come down. In this quarter particularly, there is one product in the gyne segment, which is Unwanted-72, which has also been impacted. So adjusted for that, I think the IPM number would have been 10% plus, which is currently 8.6%. So from an outperformance perspective, we would have still been 1.25x versus the IPM. Okay. Thank you, sir. So one more question. On the Dydrogesterone product, what is the update there? How is the production progress in the last quarter? Last quarter, what was the feel of Dydrogesterone? So our growth last quarter has been more than 20%. If you include both the brands, Dydroboon as well as Dydrogana into different regions, so they have grown by more than 20% in Q2. Okay, sir. And one more question, if I may. In the exports, were there any one-off opportunities that were there in the last quarter? So if it continued, or is it purely based on new launches and the base business, the growth? So one-off opportunities where? Sorry, your question is not clear. Sir, my question is that the export growth, is it purely based on the base business growth and the new launches, or has the one-off opportunity been continuing that we mentioned in the last two to three quarters? So export business has seen good growth both in the U.S. as well as ROW markets. As far as one-off opportunity, that is, again, as highlighted earlier, is a smaller versus the base business. Okay, sir. Thank you. Growth guidance is expected to be intact. That is double-digit growth over last year number. Okay, sir. Thank you. Thank you. The next question is from the line of Harith from Avendus Spark. Please go ahead. Hi. Thanks for the opportunity. On BSV, now that we've closed the transaction, can you share some more details around the purchase price allocation, the breakup between intangible goodwill and the net assets acquired? Yeah. So this exercise is currently we have just started with this exercise. So nothing more to add to what we have highlighted earlier because this exercise is going to take some time. So on a very broad basis, what we can give that whatever is the premium, approximately 30-odd% of that would be getting allocated. In the range of anywhere 27%-33% would be towards the goodwill portion. Okay. Got it. And if you can also talk a bit about the performance that you've seen at BSV in the first half of FY25, both in terms of growth and margins and how we should think about BSV numbers for FY25. If you could share some outlook, that would be helpful. We can share only top-level data points. From a top-level perspective, the formulation business, which was 90% plus fiscal 2024, still has grown at about 13%. There's a German API business, which was 9%, has actually declined by 50%. Net-net, we have grown in the formulation business, which has led to EBITDA margin expansion, which was 23% reported last year to now 26%. Okay. And is there some outlook that you can share for the second half or for the full year? So I think closing has just happened, and the guidance remains that business is expected to continue to see 15% plus growth with the improvement in EBITDA margins. Okay. And lastly, on the consumer healthcare business, we've seen a 20% growth, a strong performance. So how should we think about the sustainable growth for this business? Yes. So Harith, on OTC basis, you may expect double-digit growth on an annual basis. Although Q1 was a bit impacted, so here you may expect high single-digit to low double-digit for this financial year. And going forward, you may expect double-digit growth. And EBITDA margin will largely be in the range of 18%-20% as we have guided before. All right. Thank you so much. That's all from me, sir. Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one at this time. The next question is from the line of Gagan Thareja from ASK Investment Managers. Please go ahead. Yeah. Good evening, sir. Sir, first one is a clarification on BSV. If I go by the presentation figures that you gave last quarter, I think OPM stated there was 28% adjusted OPM. You talked of OPM first half being 26% versus 23% reported last year. So I mean, like-for-like adjusted, what's BSV's operating margin for the first half of this year versus last year? Yeah. The adjusted EBITDA margin is 29%. Versus first half last year would have been? It is in the region of 28%. Okay. All right. A second one is on incremental interest and depreciation cost post the consolidation of BSV starting next quarter, possible to enumerate and give some idea on that? That's what we highlighted, that the current purchase price allocation study is on the way. We expect to close this study by end of this year. That time, you will get a fair idea as to what is the intangible which are getting amortized and how much is getting allocated to the goodwill. As a rule of thumb, or at a very, very high level, we have said that the premium, what we expect on a very, very high level, close to around 30% could be towards the goodwill. Sorry, 30% would be towards? Yes. Intangibles? The balance should be towards the intangible. But this has to be validated by the valuers. So we have just started this exercise after closing. Amortization would be done over what time frame? That's what, so you have to be a bit patient because this is going to take time, this exercise, because there are multiple intangibles, and each intangible will have a particular time frame. Okay. So we will give you more color to this in our next investor call. By that time, we can talk about this with more certainty and clarity. Okay. And basis the 10 years of repayment, 10 years of the NCDs and the commercial paper, what would be the overall cumulative debt repayment annually you would be targeting in 2025, 2026, and 2027? As we highlighted, that to maintain the financial prudence, by FY26, the overall debt should be less than 2x of the EBITDA level. Overall time frame, what we have kept is three years is the time frame within which we intend to liquidate the whole debt of INR 10,000 crore. What would be the? Yeah. Sorry? No, no. Go ahead, sir. Yeah, so three years is the time frame by which we expect to retire the whole debt of INR 10,000 crore. And the plan to accelerate the repayment is. One is through the QIP. Part of the debt is going to get retired through that. And we have certain non-core assets, which also we are in the process. We have initiated the process of liquidating those assets. So those proceeds will also be used to retire that. Overall basis, three years is the time frame within which we have to retire the debt. What could be the possible equity dilution you would do to part pay or partially pay the debt? That will be close to INR 3,000 crore is what we have, as per financial prudence we have worked out. This is subject to the formal approval and consideration by the board. So that is the proposal which will be put across to the board for their consideration and evaluation. Okay. And final one from my side, sir, the chronic acute mix will keep on moving in favor of chronic for Mankind's base business. Obviously, it comes, as you have already pointed out, at 10% or more higher gross margins, which means that, logically speaking, operating margins should have more headroom to improve unless you intend to plow it back in promotional spends. Likewise, there are operating levers in BSV. Is it fair to assume that both base business of Mankind as well as BSV will have an improving operating margin trajectory going ahead? That's not fair, as I'm sure. Possible for you to give some color or enumerate very broadly or ballpark what sort of improvement we'll be looking at on an annual basis? So the broad guidance, what we have given going back to the guidance, so 25%-26% is for Mankind. And what we have been maintaining stance is that BSV acquisition will be margin at the end. So the BSV margin should be better or comes out to be better than the Mankind margin. All right. Thanks. I'll get back in the queue for more later. Thank you for taking my questions. Yeah. But you have to appreciate there are levers available which can enhance the margin. But to quantify them at this stage will be a bit premature. So we would like to maintain the same guidance of 25%-26% for Mankind. Okay. Thank you, sir. Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Bansi from J.P. Morgan. Please go ahead. Yeah. Hi. Thanks for taking my question. So my question is on BSV. How should we think about growth in international markets for this portfolio? So I understand you've guided for 15% growth. And in the domestic market, you guys have a pole position with your distribution reach. But when we think about international markets, what I understand is that in the Philippines, Malaysia, these are the key markets for BSV as of today. So how should we think about growth in those markets? And would you need further investments to grow that part of the business? Yeah. Hi, Bansi. This is Prakash. So the question asked was for the second half of this year where we talked about 15% plus growth. From a 26 perspective, when we see the full year, we expect the growth to further inch up to 15%-20%. We are already seeing 20% plus growth in the international markets. So that should continue the momentum because these existing products will enter a lot many markets as the registrations are just taking place. So there's enough growth levers available to grow in the ASEAN markets, LATAM markets, MENA markets. So 20% plus growth is what you could build from 26 onwards in the international markets. These would be largely coming on account of entering new markets, or do you also have pricing lever in these markets? So the first one will be more penetration in the existing market because the products they are present at is one-to-two-player market. These are banded generic markets. So that is existing penetration in the existing markets. And then the growth will propel further with entering into newer markets. So it's a two-pronged growth lever. Sharon, we have just taken over this company, and the more we think about BSV, the more we feel very, very confident that this is a wonderful acquisition we have made. It's always good to be a bit conservative initially so that we can make you happy later on. As Prakash said, a lot of things will happen in BSV. TTK business will come, which is not a core BSV kind of a business, will be separated out. There are certain right things will happen. At the same time, once you will come, some kind of acceleration in everything will happen. We are very, very confident about this. Appreciate your comment, sir. And just on this, sir, there are a few products also in the R&D pipeline of BSV. So what should we think about timelines in terms of those products getting eventually launched? So would it be slightly longer term, in three-to-five years' time frame? In the case of R&D, I mean, it's always very premature to make any comments because it's a kind of a journey without destination. But yes, when we look at the first glance, it tells us that a lot of optimism is there. That's all I can say. We don't know. I mean, it can happen in three years. It can happen in five years. We don't know. But we're quite optimistic about this. Okay. And just lastly, on the margin bit, Prakash, how would the margin differ between domestic and international fees for BSV? So the gross margins of international are tied higher. Domestic margins are inching up with the mandate brands going up. One of the questions asked, I think Neha asked that question. So when I gave the number, tied lower than company average or around that was for last year. So the first half of this year, the gross margins have increased. As I mentioned, the mandate brands have seen higher growth versus the tail brands. So that is the reason why gross margins and both EBITDA margins are higher than fiscal 2024. Okay. And because these are regulated in terms of pricing, is your pricing lower here in domestic market? So some of the products are because still a large portion, I think about 40% plus portfolio is still covered by DPCO. But since it is a single-player market, they are able to take price hikes. So there's a lot of price lever, but more so it is more on the volume side. Still, we believe that the penetration level is still very, very low given the BSV footprint. With Mankind coming in, the footprint increases pan-India. And we expect much more volume growth. Price would be a second lever to that. Understood. Thanks a lot. The next question is from the line of Kunal from Axis Capital. Please go ahead. Hi. Good evening, sir. Sir, my question is around field force productivity. So on the current portfolio, if you can share which therapies you believe offer headroom for improvement and where you can go? So there is a lot of headroom to grow in respiratory launches. So we have ophthalmology is one area. Dermatology is another region where we have a lot of opportunity to grow. These two segments. And then we have super specialty businesses like urology and neurology where we feel that we have a lot of headroom. Just to add, the Mumbai division, which is the specialty chronic, where they are the specialty divisions of cardio, diabetes, they are still under three because they've been just launched three, four years back, so there's a lot of headroom, so Mankind, if you see, is a relatively younger company with a lot of new division, 10 plus new divisions coming in the last three to four years, which are still sub-3 lakh PCPM, whereas the average is more than 6.5, so the older divisions are 9 to 10 to 12 lakh plus, and the newer divisions, which are launched last three to four years, are around 3 lakh plus minus, so all these divisions have a lot of headroom to reach to company average, which in turn will improve the company average to much higher than the current levels. So if you look at any new division of Mankind, most of the divisions are in the chronic side. And when Prakash said 3 lakh plus minus productivity, the growth is 25% plus. And just multiply this in the next two, three years' time, and you'll see that the productivity will go up many fold. So we hope that once these chronic divisions, specialty divisions, start giving us more productivity, I mean, in every term, whether it's the profitability, whether it's the top line, whether it's the bottom line, we hope to see we'll catch up many things. Sure, so that's helpful, but could you share what would be the productivity of the chronic division today? Your voice was not clear. Can you repeat your question? I was asking, can you share what the productivity would be of the chronic division? So that's what we highlighted, that the only specialty division, which is chronic cross-focus, so their productivity is less than company average. But the legacy division, there is a mix of chronic as well as acute. So if you strictly ask that, what is the chronic productivity as a company as a whole level, so that we are not able to capture and provide. So Kunal, as you might have appreciated, that Mankind is a very unique company, which has when they launched, the division itself had both acute and chronic, which was a multi-specialty division. So that's why we are unable to carve out exact PCPM for acute and chronic. But what we are telling you is that the newer divisions, which are specialty-driven, more focused towards MD, DMs, KOLs, those are the newer divisions launched in the last three, four years, which are around three. But if you see the brands like Telmikind, Amlokind, these are more than 4,500 crore brand today. And the PCPM sitting in the multi-specialty division would be in the region of 8-10 lakhs. So it's very difficult to carve out just for chronic. But to add to Prakash's point, the chronic, around five years ago, our chronic contribution was 28%. Now, from 28%, it has gone up to 36%-37%. So there is a jump in chronic from 28%-36% in the last four, five years. Got it, sir. And just a second, carry on on that point. When you add BSV to your portfolio, I mean, how should we see the sales force shaping up in the next two to three years? Would you be adding people, or because there is some overlap in terms of the prescribers, do we see some sales force maybe? Would there be layoffs or anything of that kind? Strictly, I understand. I mean, when you look at this, Mankind is a very unique company. We have different kinds of functioning in Mankind. One side, when you look at this, our traditional old mass divisions where 1,700, 1,800 medical reps are working, retail side, where we sell acute and chronic both. This is one side, the older one. Then it comes to our consumer division, the second side. The third side basically is what our specialty business, which we started four years back, 2019, four, five years back. When we say specialty, that means all the chronic divisions, only chronic we sell over there. And now BSV. BSV is a totally different ball game. It is super specialty, more towards critical side, more towards gynec side, more towards IVF side. So you'll hardly find any overlap. The only place in BSV where we are supposed to really work on is TTK portfolio, where there it has to be Cardiac, Urology, three, four divisions are there. We are supposed to see how we basically play with that because that's the place. These divisions will come to Delhi side because these are prescription, branded prescription products. So there's some kind of optimization which will take place. So we don't see overlapping, 5%-10% overlapping. That's all. Nothing more. Just one point if I may add. So BSV PCPM on an average last year was 6.5. But if you carve out just the TTK, which was under three, the remaining PCPM is upwards of eight lakhs. Oh, got it. Got it. That's quite helpful. Thank you and all the best. Thank you. The next question is from the line of Gagan Thareja from ASK Investment Managers. Please go ahead. Hello, Mr. Gagan. Your line has been unmuted. Please go ahead with your question. Yeah. Thanks for taking my question again, sir. Is it possible to give some idea of the contribution to your domestic sales from your in-licensed brands currently and how they have grown year on year? There is a significant growth across the in-licensed brands. We are not calling out the percentage, but it is a very tiny percentage today. We have seen very strong growth across older products which were in-licensed like Neptaz and also the recently launched products like Inclisiran as well as the Symbicort. Okay, but is it reasonable to assume that this growth number would be much higher than the accumulated reported growth of the domestic piece? So Gagan, I mean, try to understand that whenever we go for any in-licensed product, the strategy is not only the growth. Strategy is how to really, I mean, make our presence in top-most doctor chambers. So they become the spearhead of our marketing side. These in-licensed products help our marketing side in entering big doctor chambers. So that's where we see in-licensed products. If you're selling branded gynec products or some specialty products, I mean, with less of science. But once you start selling this in-licensed product, a lot of science is there. A lot of information is to be passed to these doctors. So they start listening to us. At the same time, it really enhances the reputation of Mankind. So it's more of intangible. It's more of helping our marketing side rather than just looking at how much volume growth, how much growth is there. We don't see like that. It's so tiny right now. Okay, sir. And on the penicillin brands, I think last year you grew very well. Have you been able to maintain that kind of growth momentum in the penicillin brands? Same kind of growth, yes. 25% plus. Right. And exports last year, you had indicated that on that base, you will grow moderately this year. But first half, growth has been very strong in exports. I think the base catches up in 4Q, but that would still mean that if you can continue at your current sort of quarterly run rate, exports this year should also be very healthy in growth. Is that assessment correct? And secondly, on that base, in 26, how should we look at exports for Mankind, excluding BSV? So Gagan, as you know, exports guidance is very, very difficult. But if you see the U.S. generic cycle is pretty favorable. So the cycle is good, better than expected. And ROW also has picked up sales. So contribution of ROW sales have also picked up. So both of them contributing significantly to the overall growth. So we still be guiding for double digit. Let's see how we end. For 26, we'll come back to you in the Q4 quarter. Yeah. I mean, 1H is very, very strong. So arithmetically, even if you maintain that sort of rate, we're still talking of a very good number in exports for this year. But be that as it may, last question from my side. When you indicated non-core assets will be used to pay back a certain amount of debt, one, what will be potentially the scale of repayment that you can sort of get from monetizing these assets? And if possible, can you perhaps point out which are these? Are you talking about the resort and the real estate assets here? These are the two hospitality units. One is the name of Manu Maharani, separate entity. One is the broader. The process of being liquidated. Right. And what sort of part of your debt can be repaid away from liquidating these assets broadly? We have currently floated the RFP for sale of these assets. What we are targeting, that something somewhere around 600-650 should be the consideration that we are looking at, which will be used for the purpose of retiring the debt. Okay, sir. Thanks for taking the questions. I'll get back in the queue. Thank you. Thank you. The next question is from the line of Tushar from Motilal Oswal Financial Services. Please go ahead. Yeah. Thanks for the opportunity. So just on the chronic therapy side, if you could share price, volume, new launches data, maybe for first half or on a 12-month basis? Can you repeat the question? Not clear, please. On the chronic therapy side, if you could share the price volume and new launches growth? We don't take the data, but as a whole, we can share. On chronic side, we cannot do that. It's a very small base, and we are just catching up. We are still underindexed the market, as Sheetalji highlighted. Market is at 38%. We are at 36%. There's a lot of volume jump that is happening. At the same time, wherever there are price differences, we are taking the price hikes also. As you know, we had increased our covered market presence from 62% three years, four years back to now 69%-70%. Within that period, we have launched a lot of chronic portfolio, which is still catching up. For example, within respiratory, we launched inhalation. Within diabetes, we launched those insulins. In cardiac, as you know, we launched these lipid-lowering drugs as well as Neptaz. There's a lot of addition that has happened in the last three years. They're all catching up. There's a lot of volume jump that is happening. Gotcha. Gotcha. So if I exclude the BSV portfolio for timing and look at the prescription growth rate, considering the kind of products that are getting added in the chronic side, so what kind of growth prospects can be thought of for the pure domestic, let's say, prescription side of the business for next two to three years? So we have to quantify. I mean, two places, now three places we are very bullish. These are very close to our heart. One is our consumer business. Second is our chronic side. Just trying to see Mankind's position. I mean, a few years back, it was just 1%. 20 years back, 22 years back, our chronic share in our total share was only 1%. And today, it is 36%. How we have done it? By just continuously, I mean, working on it. We hope that we can. Our first priority basically is how fast, how soon in next short-term period, how can we cross 40%? How can we come to 40% kind of a contribution from our chronic side? And why don't we and why not in long-term, more than 50% like our peers are doing it? That's the kind of aspiration we keep in our heart in chronic side because we know, one, it brings consistency. Second, it brings more profit. Whatever new prescription you add, that really gives you growth as well. See, all in all, it's a fantastic thing. We learned this a bit late, but working on it, and that's one reason you always see that in chronic side, our growth is more than IPM always. That's quite encouraging. So just connecting that to the profitability, like earlier call, you had highlighted Panacea is now like 33% sort of an EBITDA margin or a profitability. So in a pecking order, putting it like chronic, acute, then consumer, and then the exports, and now Panacea in terms of the EBITDA margins of these segments, if you could throw some light on this, which are the ones which are more than the company average and which are the ones which are below company average? Okay. Panacea has been a successful acquisition where the EBITDA margin is much higher than the company margin because that's a pure, pure chronic play. And plus, at the time of acquisition, we were relying on Panacea to supply. Once we internalized, the margins improved further. As we have earlier also called out, the margins are upward of 30% for the Panacea business. We don't do the profitability at the chronic segment or at the acute segment. We do a consolidated segmentation. And now we have started showing a separate business segment of consumer care. If you look at the pecking order broadly, Panacea is number one. Then the core or the main business is number two. Then comes our OTC business, where we have given a guidance that the EBITDA margins will be in high teens. So that's how the pecking order is, and yeah. And exports, sir? Exports will be below OTC? Yeah. So exports also lies somewhere between the high teens and the company average margin. Understood. Thank you, sir. That's it from us. Thank you. The next question is from the line of Alankar from Kotak Institutional Equities. Please go ahead. Hi. Thank you for the opportunity. Sir, it's been five years now since we set up our specialty team. While you did comment on the current PCPMs and the scope for improvement in the future, can you qualitatively comment on how has been the progress so far versus, say, our initial expectations? What have been the key learnings? And any specific therapeutic areas wherein you expect the performance could have been better and possibly there is more scope for improvement in the future? If I think back, these specialty businesses launched, and immediately after that, the COVID happened. Don't forget that. It was only after a few months COVID happened. So all in all, it's a if I say almost two years of launching COVID, so it's a three-year-old journey. And when this kind of interval is there or interruption is there, certain things which you expect don't happen. People develop different kind of habits post-COVID as well. So you keep on facing those challenges. In some of the divisions, the productivity has reached to Rs. 4.5 lakh and Rs. 5 lakh. But in some of the divisions, due to, I mean, I'll say not up to the expectations kind of leadership, productivity did not reach to the right level. So if I say so that our neuro business needs a lot of improvement. Again, we are working on the leadership side. Our one division is there in the acute side. There we need a bit of improvement. But rest as a whole, things are quite good. I can tell you, I mean, 70%, 70% plus divisions are doing good. Some are doing very, very good. Some are doing very good. And 30% are not in the category of, I'll say, to our expectations. And there are always new challenges because it was a first kind of experience. We came to new therapies. To learn and just keep working on whatever is wrong. We are living in a very dynamic world. Things change very, very fast. And we are learning from it. Understood, sir. That's helpful. The second one is possible to share our performance in either this quarter as well as or maybe the first half, Mankind versus IPM in rural markets and tier-one towns? So if you talk about tier-2 to tier-6 towns, our growth has been higher than the IPM growth in Q2. It has been 7.2% versus 6.9% of IPM. And if you take H1 as a whole, then it is 1.1x of IPM. For the tier-one towns, sir? And for metro and tier-one, it is again higher than IPM, 10%, 9.8% versus 8.8% of IPM. And even as for H1 is concerned, it is 1.1-1.2x of IPM. Understood. Thank you, sir. And one final question. So now that the confusion around the sale and distribution of emergency contraceptive pills has been resolved, do you expect sales for Unwanted-72 to recover completely in the current quarter, third quarter? No. The issue of emergency contraceptive pill was that it was brought under price control. So, I don't think that there was an issue that needed to be resolved. So there was price erosion, and that is why the total numbers look so low. Yeah. Volume remains intact. Volume is intact. Understood. So basically, I mean, compared to our run rate before the second quarter, it will be, I mean, we'll have to work with a slightly lower pricing going forward as well. Yeah. Pricing has been revised downwards, yeah, just for that reason. Fair enough. All right. Thank you. So we can take the last question? Yes, sir. Yeah. So we can take the. The last question is from the line of Harith from Avendus Spark. Please go ahead. Hi. Thanks for the opportunity again. So on your initiative to launch products using GMP quality APIs, you mentioned that we've launched around 200 SKUs till date. So would you be able to share some color on the response to this initiative? Have we seen some kind of a positive impact on growth in these SKUs? And do we have a goal in terms of number of SKUs that we've covered in the near to medium term? Yeah. Could you repeat the question again, please? The initiative to launch products using international GMP quality APIs, you mentioned that we have launched almost 200 SKUs using these GMP quality APIs. So what I was asking was about the response to this initiative from doctors. How have they reacted to this? And do we have any goal in terms of number of SKUs in the medium term? Reaction is very, very positive. Reaction number one, very, very positive. When we say that there's a growth in the chronic side more than the IPM, better than many, many companies, it really means that it's not by just creating some kind of a specialized division. That specialized division is supposed to have some kind of a, I mean, differentiated product. And when we sell GMP-grade API products, that's a differentiated product. So, I mean, if you are a doctor, and if I say that whatever an American gets, the quality, whatever a Western somebody living in Europe gets, the quality, if you get the same quality, right, at Indian prices, so that's quite impressive, actually. In 30 seconds, the call is done impactfully. Same rosuvastatin, same other simple molecules, telmisartan or rosuvastatin or sildenafil. Yeah. Every product. Once you have GMP in that, it really, I mean, gives so much of, I mean, credibility. It really opens the minds of most sophisticated, more super-specialty doctors as well. Okay. That's the reason it has expanded, right? We did experimental 30-50, and then 100, and then 150, and now we are touching 200. We are tasting success, then only we expanded. Okay. Got it. The last one. On the volume growth that you've shared for the quarter, 1.3%, and this was closer to 2% in 1Q. So while we've outperformed IPM in terms of volume growth, but historically, we've seen Mankind growing at 4%-5%, maybe except FY24. So where do you think this volume growth will settle at? I understand the last few quarters you've had the impact of some regulatory restrictions. But if I think of the next two to three years, how should we think about volume growth? I mean, everything is always in comparison. If IPM is growing at a certain percentage, our growth is always relative to that. We wish to grow more, and we'll definitely grow more in the future. That's a thing we can say that. And I also mentioned to you that time and again, we keep doing certain commercial excellence exercises. So whatever you're seeing right now is a bit muted. Despite having more growth than IPM growth, I'd say it's still muted. We hope to catch up soon. We hope to, I mean, have more volume growth as well in the future. Thank you, sir. That's all from us, sir. Thank you. Ladies and gentlemen, that was the last question for today's conference call. I would now like to hand the conference over to the management for their closing comments. Thank you. Thank you, everyone. For any further queries or clarifications, you please feel free to write to us on investor.relations@mankindpharma.com. Thank you and have a nice day. Thank you so much. Thank you. Thank you. Thank you. On behalf of Mankind Pharma Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.