Ajanta Pharma (NSE:AJANTPHARM) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Ajanta Pharma Q2 FY twenty twenty seven Earnings Conference Call. As a reminder, all participant lines will be in a listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Yogesh Agarwal, Managing Director of Ajanta Pharma Limited. Thank you, and over to you, Mr. Agarwal. Thank you. Good afternoon, everyone, and welcome to Ajanta Pharma's q two earning call. With me, I have today mister Rajesh Agrawal, our joint managing director mister Aravinda Agrawal, our CFO mister Rajiv Agrawal, our vice president, finance and investor relations.

0:54 I hope all of you have received the financial results by now. Before we start, here is the order for today. I'll cover the group and our international businesses. Our joint managing director will take India, and our CFO will close with the financials and our guidance for the year. Please note that during this call, we may take... We may make certain forward looking statements, which are subject to risks and uncertainties. I will start with overall business performance. I'm happy to inform you that we have closed the second quarter on a healthy note. Revenue from operations for the quarter grew by 33% to rupees 1,794 crores. EBITDA grew by 47% to $5.43 crores at a margin of 30%, and profit after tax grew by 49% to rupees $3.88 crore.

1:51 For the first half, revenue grew by 29% to rupees 3,420 crores and a profit after tax by 40% to rupees $7.22 crore. Our financial position continued to strengthen with return on capital employed at 41% and return on net worth at 31% as at end of September twenty twenty six. These robust returns reaffirm our position among the industry's leading performers. Let me now take you through our key business verticals, starting with branded generic business in Asia and Africa, which contributed 38% to total revenue in the second quarter of the current financial year.

2:36 We continue investing in new markets and products, which will ensure consistent growth in this part of the business. Starting with Asia branded generics, I'm pleased to share that despite the ongoing geopolitical tensions in The Middle East, our proactive efforts to leverage alternative shipping routes have enabled us to ensure the safe and timely delivery of consignments to our respective markets. This has resulted in our Asia branded generic business bouncing back during the quarter with a growth of 18% and a sales of rupees INR $3.66 crores compared with INR $3.10 crores in the corresponding quarter last year. In the first half, sales were at INR $6.21 crores compared with INR $6.14 crores in the corresponding period last year, representing a growth of 1%.

3:27 During the first half, we launched four new products in the region and are confident that growth momentum will continue in coming quarters. Moving to our Africa brand regenerative business. In Q2, it continued to deliver a strong performance with sales increasing by 41% to rupees $3.12 crore compared with rupees $2.21 crore in the corresponding quarter last year. In H1, sales were at rupees $600.07 crore compared with rupees $4.49 crore in the corresponding period last year, representing an excellent growth of 35%. This robust growth in the first half reflects gains in the market share, new product launches, field force addition over the last two to three years and a favorable currency movement.

4:16 During the first half, we launched three new products, further supporting our continued expansion across the region. As can be seen, our conscious call to keep the business well diversified across markets enables us to keep performing and delivering growth in spite of the challenges. Let us now turn to other two verticals within our international business. Our U. S. Generic business continued to deliver a strong performance, contributing 27% to our revenue in the second quarter. During Q2, revenue grew by 41% to INR $4.84 crore compared to INR $3.44 crore in the corresponding quarter last year. For the first half of the year, revenue stood at INR $9.71 crore, registering a growth of 49% over INR $6.53 crore in the same period last year.

5:10 The strong growth in Q2 and H1 was partly supported by a lower base in the corresponding periods of the previous year. During the second half of FY 2026, we had few limited competition products, which have driven healthy growth sets. New players have now entered these products, which will moderate our growth momentum during the second half of the year. Taking these factors into the consideration, we maintain our full year revenue growth guidance of high single digits for The U. S. Generic business. During the first half, we launched three products, received four final approvals and filed one ANDA. We currently have 17 ANDAs pending approval.

5:59 Let me now discuss our Africa institution business, which delivered a stronger than expected performance during the quarter, contributing 7% to our total revenue. Q2 sales grew by 259% to INR 116 crore compared to INR 32 crore in the corresponding quarter last year. For the first half of the year, sales stood at INR 187 crore, registering a growth of 164% over INR 71 crore in the same period last year. As we have consistently highlighted in our earlier communications, procurement by institutional agencies remain unpredictable, both in terms of timing and the value. While we witnessed strong procurement activity during the first half of the year, given the given the inherent uncertainty in this business, we do not expect the same level of sales to sustain in the second half.

6:57 Now I invite Mr. Rajesh Agrawal, our joint managing director, to brief you on India business. Thank you, and over to you. Thank you. Good afternoon to all of you. Our India business continued to deliver excellent performance in the second quarter of the current financial year. These strategic investments we have made in expanding our field force and entering new therapeutic areas have started yielding encouraging results. We remain committed to these investments to drive sustainable growth in the coming quarters and years ahead. Reflecting reflecting this progress, I am pleased to share that our overall ranking in the Indian pharmaceutical market has improved to twenty third in September 2026 from twenty fourth in March 2026.

7:51 According to IQVIA MAC September 2026 data, Ajanta continued to outperform the Indian pharmaceutical market, registering growth of 17% compared to the market growth of 13%. Our volume growth stood at 18% ahead of the overall market, while our growth from new product launches exceeded the market by 70%. Importantly, this performance was broad based across most of our therapeutic segments with our growth consistently expecting exceeding the respective segment averages. We remain confident of sustaining this positive moment... Momentum in the years ahead. Within our covered market, we continue to rank among the top 10 players across all our core therapeutic segments.

8:41 Cardiology remained the largest contributor to our India branded sales at 37%, followed by ophthalmology at 28%, dermatology at 22%, and pain management at 10. Our newer therapeutic areas contributed the remaining 3%, reflecting the gradual progress of our diversification efforts. Coming to our financial performance, the India business contributed 28% to the company's total revenue during the second quarter. Q two sales grew by 16% to 504 crores compared to rupees 432 crores in the corresponding quarter last year. For the first half of the year, sales grew by a healthy 20% to rupees 1,013 crores compared to rupees 841 crore in the same period last year.

9:37 Field force productivity measured as ECPM improved to rupees 4.5 lakhs in the first half as against rupees 3.7 lakh in FY twenty twenty six. This performance was further supported by our continued focus on new product introductions. Our India business also includes the Trade Generics segment, which contributed INR 56 crore in Q2 and rupees 104 crore during the first half of the current financial year. With this, I now invite Mr. Arvind Agrawal, our CFO, to take you through the financial performance. Thank you, and over to you. Thank you, and good afternoon to all.

10:26 I will take you through the consolidated financial performance for second quarter and first half of the current year. Revenue from operations for the second quarter grew by healthy 33% to INR $17.94 crores compared with INR $13.54 crores in the corresponding quarter last year. In the first half, revenue grew by 29% to rupees 3,420 crores compared with 2,656 crores in the corresponding period last year. Of this, India contributed 28%, branded generics across Asia and Africa contributed 38%, US generic contributed 27%, and Africa institution 7% during the second quarter of the current year.

11:20 This is an affirmation of our diversified business model, supporting consistent growth even in the face of challenges in some of our markets. Our gross margin stood at 79% for the second quarter and first half of the year. The improvement over FY twenty twenty six was primarily due to favorable currency. For the full year, we expect gross margins to remain around 78% with a variation of plus or minus 100 basis points. Personnel costs remained stable at Q1 level and stood at INR $3.84 crores in Q2 compared with 317 crores in the corresponding quarter last year, representing an increase of 21%.

12:11 In the first half, cost stood at 765 crores compared with rupees 620 crores in the corresponding period last year, representing an increase of 23%. This increase was mainly attributable to annual increments paid for expansion and additional manpower and manufacturing facility. R and D expenditure, which is included within personnel costs and other expenses, stood at rupees 72 crores in q two compared with 63 crores in corresponding quarter last year. In first half, cost stood at 138 crores compared with rupees 119 crores in the corresponding period last year. This represented approximately 4% of our total revenue.

12:59 For the full year, we expect R and D expenditure to be around 5% of revenue with spending stepping up in the second half. Other expenses in Q2 stood at INR $4.83 crores compared with INR $3.92 crores in the corresponding quarter last year, representing an increase of 23%. In first half of the year, expenses were at rupees 971 crore compared with rupees 765 crore in the corresponding period last year, representing an increase of 27%. First half, other expenses include a foreign exchange loss of rupees 26 crores. The increase in other expenses is in line with our business growth and mainly reflects higher selling expenses, international logistics, and manufacturing costs.

13:52 The increase in expenses also reflects our continued strategic investments in products, brands, and people across the branded generic portfolio. We expect other expenses to remain broadly aligned with the current trend. EBITDA for the second quarter was INR $5.43 crores, up 47% from 369 crores in the corresponding quarter last year at a margin of 30% against 27% last year. There was no foreign exchange loss in the quarter, so reported and adjusted EBITDA are the same. For the first half, reported EBITDA was 971 crores at a margin of 28%.

14:38 Excluding the foreign exchange loss of rupees 26 crores booked under other expenses, adjusted EBITDA was INR $9.97 crores, up 34% from INR $7.45 crores last year at a margin of 29%. We remain confident of maintaining an EBITDA margin of around 27% with a variation of plus or minus 100 basis points while continuing to invest in the development of our markets. This implies a lower margin in the second half than in the first as competition in The U. S. Builds institutional sales normalize and we step up investment in R and D and our field force. During the second quarter, other income stood at rupees 42 crores, and in first half, it was rupees 108 crores. Other income includes gain from foreign exchange of rupees 24 crores in second quarter and 69 crores in the first half of the current year. Taken together, with a rupees 26 crore loss under other expenses, a net foreign exchange effect for the first half was a gain of rupees 43 crores.

15:50 Profit after tax for the second quarter grew by 49 to 388 crore compared with rupees 260 crore in the corresponding quarter last year, a margin of about 22% of revenue. For the first half, profit after tax grew by 40% to INR $7.22 crore compared with INR $5.16 crore in the corresponding period last year. The effective tax rate for the first half stood at 26.5% and is expected to be around this level for the full year. Capital expenditure during the first half stood at INR $2.10 crores. For the financial year 2027, we expect capital expenditure to be around INR 400 crores, including around INR 150 crores of maintenance CapEx and the balance for capacity expansion.

16:46 Coming to the working capital and return ratio, our financial position has trended between March 26 and September 2026, where return on capital employed improved from 33% to 41% and return on network from 25% to 31%. This was supported by better working capital management with trade receivables reducing from hundred and twenty five to hundred days as there was better collection in The US business. Inventory days also improved from sixty three to fifty two days as we continue to focus on enhancing working capital efficiency. We closed to September 2026 with net cash and investment of rupees 574 crores after paying the interim dividend of about rupees 400 crores during the quarter.

17:39 To sum up, there are three things to take away from today. First, a strong first half. Revenue from operations up 29% to rupees $34.20 crores and profit after tax up 40% to rupees 722 crores with every business growing in the second quarter. Second, our financial year 2027 guidance is unchanged. Revenue growth in the high teens, which factors in a moderation in the second half as new competition in The US takes effect and institutional sales normalize. Gross margin of about 78% and EBITDA margin of around 27%, each with a variation of plus or minus 100 basis points. R and D at around 5% of revenue, an effective tax rate of about 26.5%, and capital expenditure of around 400 crores.

18:34 Third, our balance sheet keeps getting stronger with return on capital employed at 41% and return on network at 31%. Our core branded generic business in India, Asia and Africa remain the foundation for consistent growth in the years ahead. With this, we now open the floor for question and answer. Thank you. Thank you. We will now begin the question and answer session. Participants requested to use handsets will ask your question. Ladies and gentlemen, we will wait for the moment while the question queue is in place. The first question comes from the line of Niharika Agarwal with.

19:24 Please go ahead. Thank you for the opportunity. My question was more towards The US generics. We saw approximately a 49% growth in h one. So I wanted to understand what is really driving this growth. Is it the new launches or the market share gains in existing products or improving pricing? No. On the last last year, second half onwards, we had a product which had a limited competition situation, and we continued that for second half of the last year. And currently, this was two quarters, first quarter and second quarter. So because of that, the sales in The US are at elevated levels, which we have seen, and that is what has shown into the 49% growth for the quarter.

20:17 And as we have shared in our opening remarks, the new... And new competition has come in for this product. So we are expecting our market share for this product to be reduced. And because of that, the sales will get normalized for The US going forward in the next quarters. Thank you. And so so, you know, with the fake five to six ANDA filings targeted annually, how should we view The US business trajectory for the next two to three years, more more from a long term view? I think I can only give a strategic direction that we continue to file this product, like, in the first half also we launched the products.

21:04 We expect few more approvals during the next two quarters, and probably they will bring them to the market as well. So we have some good product under the pipeline subject to the approval from the FDA. We should keep bringing them to the market and launching them. So I think we don't share the guidance for the next year. But for the current year, we've had a very good last year. We've had a very good current first, second half. There's two quarters also with the with the sales getting normalized. We have still... In the beginning of the year, we had given the guidance of the mid single digit, which we have now... Which we are now revising to the high single digit for The US market. So this is the outlook for the current year. Let us see how the situation evolves, how many approach we get now, how many products we launched this year, first quarter. According to that, I think next year, we will probably share it in the in the... At the appropriate right time, maybe in q four or the q one of the next year.

22:01 Thank you. And on the on the Asia business, we we saw an 18% growth in q two. So what is really leading to this growth? Is it are we seeing improvement in underlying demand? Or is it because of product launches? Or is it just because of the favorable base? Yeah. It is a combination of multiple things. The base for the earlier q one, q two was around 300 close. Last quarter, sales were slightly depressed at two fifty five, but we have bounced back with three sixty six. So there were supply chain issues. There were some logistic challenges to get the stocks in the market.

22:48 So that has all ironed out. And in the last quarter also, we said that there were some sales which were there in the last quarter, which got pushed out last minute. So we should see those reflecting in the q two and q three, q four as well. So I think combination of everything, lot of things getting streamlined, the logistics, the geopolitical tension which created the logistic challenges that is getting streamlined. We are doing well. We are able to increase our market share. So combination of everything, we had ourselves given the the guidance for the for the Asia in the high double digit... Sorry, in the mid teens. And we continue to stand by that though for the first quarter sales of last, but we'll catch up in q three and q four. So for the whole year, Asia, we are looking to post mid teens kind of growth.

23:40 Okay. That is all for me. Thank you for the opportunity. Sure. Thank you. Next question comes from the line of Tushar Manutani with Motilal Oswal Financial Services Limited. Sir, first on the step up on the R and D spend, if you could further elaborate, this is for which geography is it, Just US or the other geographies as well? So US is almost 50% is for The US and 50% is for the India and emerging markets. That is our our investment. That's okay. That's okay.

24:27 For US, this is, any specific product where we think there is an opportunity for us or we sell from multiple products? No. No. We have a a program from some multiple products at the time if our team is developing. And, you know, as the r and d, it is... We are developing not the simple IL products. If you see more than 50% of our products are delayed release, extended release products. So we primarily focus on the complex products. So that's why it takes time, and sometimes we have a full year where we have the good bio passing. And sometimes the year, we don't get that much success. So we are working at a time on multiple products. I think it could be more than 15, 20 products at a time. And our outlook is that we should file eight to 10 K and Ds every year.

25:18 So, yeah, there are multiple products for any geography, not only for US. For any geography, there is a number of products which are being developed at a time. Got it, sir. So just on the... With the margin guidance of 27% plus minus 1% when we have done almost 29% for first half. By back of the envelope calculation, it seems it's going to be like almost 26% for second half. Is that is that the way the trajectory of the margin would be for second half? Yes. That is what... Because as we mentioned, we also clarified about that. The US business is going to be a little lower. Even the institutional business is going to be a little down. So both of them getting normalized.

26:07 I think EBITDA margins will be a little lower than than the first half. Got it. And lastly, for the India business, the cardiac therapy growth has been lower than the IPMs. If you could just highlight in terms of steps you're taking to get either in line or better than the IT. See, actually, our growth is in line with the IBM, as I mentioned in the presentation also, there is some anomaly in the number which we are trying to sort out, but I think it is taking some time. Otherwise, our growth in cardiac is in line with the ITM. Yeah. So that looks like we are slightly better than the covered market.

26:53 So so we... Generally, we are not worried about that. Got it.. Yeah. Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Rashmi Shetty with Capital. Please go ahead. Yeah. Thanks for the opportunity, and congratulation on good set of numbers. Sir, on the India part, in first half, we have seen growth of around 20%. Even ITM growth is pretty strong, around 12% to 13% for first half. So what we want to understand and generally, what we are seeing that the growth is broad based only.

27:42 What has really changed, you know, from earlier, you know, where the growth was just seven to 8% and now it has, you know, more than 11%. What has really changed in the IBM itself and, you know, even for our company and whether this kind of growth is sustainable in next year also, if you can comment on this. Multiple factors. I think one of them is the penetration of the hospitals that is taking place. The number of beds to patient ratio is improving naturally. Also, fact that multiple government schemes are really helping to drive the prescriptions and the offtake thereby.

28:32 So that's definitely helping insurance coverages, again, large government schemes as well as private insurance coverage is improving. So these are all, you know, broader factors which are aiding the growth. Of course, this this this kind of growth was not forecasted until last year. Also, one of the things that's happening perhaps is the slight bit of slowdown in the growth of the generic... Unbranded generic segment, which we saw taking off for the last two, three years as kind of slowed down a little bit. So that's adding back to the Rx distribution growth. These are the very broad factors that are aiding... You know, we hope that this trend continues.

29:20 New product launches really as well. Okay. And for India business, for for Ajanta Pharma, how do... How should we see for the entire year this growth? Should should we still maintain that 15% guidance or you feel that probably in the second half also we'll be able to do better? Our guidance is mid teens, and we've always maintained that we should be able to grow 20, 25% fast. The IPM growth and the growth, which is what we are doing, it would be marginally better. But, again, it's early.

30:07 In the post q three, we will have a better understanding of where we expect to land. Okay. And on the branded generic business, as you know, we are seeing growth, more than 30%. For the second half, our base is also pretty high. So what kind of normalized growth can we expect for the full year? No. Africa, we are having a very good moment in our favor. The growth is a compose... The result of many things as you would... We have been expanding our field size in Africa significantly over last two to three years.

30:52 And now we are seeing those field size are blossoming, and they are becoming more productive. We've also launched some good products, so that also is helping the growth. And, of course, we are also taking the market share in our existing products. And I think there is some help which we got from the current which we have seen if you see the same to same comparable period. But having said that, we have a good momentum. So we have given the guidance of high double digit for the app... For the Africa business, and we we are hopeful that to continue the momentum going forward in the second quarter also. So you mean to say that similar kind of momentum in the second half also despite the high base in h two FY twenty six?

31:42 More or less. Could be slightly less, but it will be the robust growth. Understood. And, sir, on the working capital cycle, you know, John mentioned that, you know, credit receivable days and inventory days have come down. At the end of the year of March 27, what should we expect? Because these days will be down only compared to the March 22? Or it would more or less come similar to the earlier levels? I think it will come to the similar level. In receivables, you may see some improvement, but in inventory, we will go back to the March level because currently, for half year or quarter end, there was some down. But I think at my year end, we should expect the same like what last year we have closed.

32:33 Understood. And just on the one clarification required for the forex law. In the consolidated p and l, how much was the ForEx loss which is sitting in the other expenses for this quarter? For the quarter, there was no loss. Okay. So nothing For the quarter, there is no loss. Only there is gain. But in the h one, there is a loss of 26 crores. Okay. Okay. Got it, sir. Thank you. That's it from my side. And there is also gain which is sitting in the other income. Other income. Yeah. That I'm aware. Yes, sir. Thank you. Net net net, we have got 43 growth of profit in the first half.

33:21 Okay. Okay, Yeah. Thank you. Thank you. Thank you. Next question comes from the line of Amit Kumar Singh, an individual investor. Please go ahead. Yeah. Good afternoon, and congratulations for doing a very good result. I just like to know a little bit more about what we are doing to expand our Asia business. We have seen tremendous amount of growth in India business, in US business, in Africa business, especially the institutional side of Africa business this time. But what is our role? What... How we are going to expand the Asia business? Because if other business moderate, so some of the areas needs to, you know, back up so that we can have a better growth in the next coming quarters, please.

34:22 Yeah. I think your question is very broad based, so very difficult to give a very specific answer. But the... There are two folds. I'll split it in two ways. The existing geographies where we are present and the existing geographies where we are present, we have a very good product pipeline, which is under registration in the various countries. We have a number of good products under development in the r and d. So both as they come to the market, you see certain percentage of the growth is driven by the new product introductions. We have a good product pipeline, and that will continue to drive the growth. We are also continuously adding the manpower in the... Because we see there is a gap, there is a void, or as we launch more products, we need more people on the ground.

35:08 So with that also, we are able to increase the, you know, the growth momentum in use. Just to share with you in the current first half itself, we have added more than 100 people in the emerging markets in the field. So we've increased our field size by about 5% for the first half, and we have given the guidance that we'll be increasing around seven to 8% of field size the whole year in the emerging markets. So this is the one for the existing geographies. So we are on track. The challenges we faced last year and the first quarter was more of a logistics and supply chain, not really the demand or our ability to increase the business or get the market share. As those two challenges are behind us, we are confident that we should be able to post the good results in the listing.

35:55 And we're also actively looking at the new markets where we are not present in The Middle East. And there are certain markets where we are at a mid stage. We are not at a very evolved stage. So those also, as they keep blossoming, they also continue to deliver the growth. So all in all, there is a good engines or road drivers which are there in Asia also, which have been put to sustain... To give us sustained growth in the coming year as well. Okay. So thank you. It was a good answer. Another question I have is while doing our India business, you said that one of the growth drivers which you are actually seeing is large increase in prescription from the Indian market, especially, you know, the government aid scheme from the government hospital and even the new bed which are getting added in our country.

36:50 There is an also issue related to recently a lot of drugs being coming under NPPA radar. So how that is going to affect our growth or our, you know, profit margin while doing business in India? No. So some of these products that are under the NAM are only in oncology segment. And since we do not operate in that segment, it has zero impact on us whatsoever. So we continue to operate in normal circumstances. Okay. Thank you. I think I would like to thank you so much. Thank you. Next question comes from the line of Harshil Patel with Ask Wealth Advisors. Please go ahead.

37:43 Thank you, sir, for the opportunity. I have just two questions, and these are more from an understanding perspective. So one is I just wanted to know, just continuing on to the earlier participant's point. So, you know, while the oncology thing government is taken up, but we do have cardiology with us. So that also is something which, you know, the hospitals would administer. So it... Let's just, you know, build a a case wherein something like this comes in. So is there a case where we'll also be impacted? Maybe we'll have to share something with the channel or maybe level rise some prices. Any thoughts, any color if you can provide on this that will be helpful?

38:31 No. Until we have specific product list from the government and the specific pricing, till that time, it's not possible to do any working on this. So you would greatly appreciate it. So it's... Otherwise, it will become too theoretical and, you know Correct. There'll be multiple shift. So so there is... But there is no immediate threat, broadly speaking, in my view. Right. So so so this is where we are. Yeah. Right. And second... Okay. Okay. So that's that's helpful that you're not very worried. That's it. And second thing is, sir, with respect to the in licensing semaglutide thing we've done.

39:19 So, Arun, I just wanted your thoughts on when do you think really we would be seeing the numbers in the revenues? And since we are more centered towards the Africa and MENA regions, what kind of potentials would we see around? So, you know, any any type of comments, maybe qualitative or something would also be helpful, sir. I know this is more from a, you know, kind of long term story, but I just wanted to understand it. I think any sales will start coming in in the next year, which is 2728. As you know, they take a lot of time for registration in various countries. On an average, the approval lead time around two years, and we've just started to file the last year.

40:07 So it will trickle in and since arrangement is for the large number of countries, which includes small, medium, and large sized countries. So it will start to trickle in. It will like a one product launch of a sizable in one country where you see the full blown benefit in one one way itself. So Okay. It will have a trickle kind of impact. So I think we shouldn't factor in too much whatever growth guidance as we keep giving every year. I think that will be in the... Including all these tie ups and licensing tie ups also. It will be... That will be folded into the kind of process we are giving. Okay. So you're saying that whatever will the potential will be more so included as a part of the guidance as in when it's shared, is it?

40:54 Yeah. Yeah. So we'll keep sharing every year. We share the guidance at the beginning of the year. So whenever we share the guidance, it it will be encompassing this in light also. Sure. So the the point that I'd be taking is it... The lead time for approval is around two years, and we've just about started filing. So just as a ballpark understanding, I can just, you know, have these points. Right? Absolutely. Yep. Yep. Yep. Yep. Absolutely. Got it. Perfect. Thank you, sir. That's it from my side, and all the best. Thank you. Thank you. Next question comes from the line of Nakarawala with. Please go ahead. Hi. You know, I'd probably appreciate if you could shed some commentary on our, you know, our MR productivity on the India business.

41:44 And just to build on the India business, when you talk about new launches, what are the sort of portfolio gaps in our existing therapy areas that you feel you need to, you know, fill with these launches as well? And secondly, any addition do you believe do you believe over the next three to five years, we'll have to maybe diversify the therapy mix? So any comments on that would be helpful. On the productivity part, as I mentioned in the opening remarks, the first half productivity stands at rupees 4.5 lakhs as against rupees 3.7 lakhs for the entire financial year last year. So we have we have gained substantially in the per month productivity.

42:33 So that is where we stand. What else would you like to do? On the, you know, on the existing sort of, you know, branded generic portfolio you have, where do you feel you need to... With these new launches, where do you need to sort of fill in those portfolio gaps in the existing therapy? And secondly, any any therapies you would like to sort of get into over the next three to five years that we It's a we believe on. So it's a continuous process within our company to be, you know, to be on top and ahead of the competition in terms of identifying new product opportunities and keep launching them. As and when we feel that it's a sizable market size and there is a gap area, then that's how we do it. So we have a rich product pipeline for the remaining year as well as...

43:30 Going forward, to answer the last part of your question, on the new therapeutic areas, again, we keep evaluating. Like, last year, we entered into gynecology and... Which is gaining great momentum for us internally. So in that sense, we keep identifying, you know, looking for newer therapeutic areas. And as and when we have a great go to market strategy, we will we will enter those specialties. Sure. Thanks thanks for that. And even lastly, on our emerging markets, so branded generic business, what would be our acute chronic mix? And do you track that? It'd be interesting to hear that. Yeah. I think Yeah. We track that, and I think it is quite healthy.

44:22 We have a good good acute chronic ratio. I think I don't have the figures right now, but maybe our investor relations can can get into. Sure. Thanks a lot, and wish your team a happy Diwali. Thanks. Thank you. Thank you. Next question comes from the line of with PopCapital. Please go ahead. Thank you for the opportunity. My first question is on the emerging markets of Africa and Asia. And, sir, if you can give us some specifics, like, you you have said, we have added 100 people in the emerging market.

45:11 So if you can give us the MR count separately for Asia and Africa And the productivity We don't share that granular details. So we just give the overall number. So emerging markets, last year, we had 2,400 MR strength, and then we added around a 100 people more. So we are at around 2,500. Okay. So then, sir, how should we think about it? Is it equally distributed between Asia and Africa or some larger part goes into which geography? As I said, we don't give out those details. This will be difficult for me to comment on that. Okay. And on the... If you can give us the productivity number?

46:02 So productivity in emerging markets stands at around eight lakhs and above. I think it is about eight lakhs plus. Okay. Okay. Sir, my second question is on the India business. So we did venture into new therapies of nephrology, gynecology, and all. So in that, you mentioned about gynecology doing... Picking up well. So if you can give us some specifics, like, many doctors have been reached and how many MRs are being attributed towards the newer therapies? You know, again, we are not giving division wise or specialty wise MR split.

46:50 However, if you still would like to kind of reach out to the investor relations teams, we'll be happy to kind of share whatever best that we can. Broadly speaking, both the specialties are progressing well for us, which is what matters the most. And and this this is like a three to five year progression that we are looking at. So it'll it'll have to continue to build for us. Okay. And so my last question is on The US market. We have mentioned about five to seven filings to be done in The US. So if you can just help us, you know, if there are any PADAPA for filings, you know, within discount. I believe no. I think there is no fee for filing.

47:39 Sure. That's all from my side. Thank you. Thank you. Next question comes from the line of Yogesh Suni with Head of Securities. Please go ahead. Thanks for the opportunity, sir. My first question is on the U. S. Business. Given that you have said that you might see some amount of competition coming in on the products and the run rate for U. S. Would likely be lower in the second half, which would impact margin. So does that imply that our U. S. Business profitability is now in line with the corporate level?

48:28 If you could clarify on this. We do not give out the geography wise or business vertical wise margins, but U. S. Remains to be healthy for the first half, considering we had some product which are which are... Which was a limited competition. So I think we have a constraint in how... What details we can share, so we don't give out those. We don't have... We don't give... As a policy, we don't share those data or the territory wise GC as well. But, sir, we might have witnessed significant amount of improvement on the profitability front with regards to The US market. Is it so? Yeah. Yeah. Absolutely. And that is what we've seen in the P and L also with the 49% growth which we have posted on The U.

49:17 S. And that also shows that it has flown down to the EBITDA path as well. We posted a very healthy path of 49% growth. Okay. And so one more thing on the emerging markets, given the kind of investments that we have done in the last two years, whether it is with regards to adding of the field force or entering new geographies or new product launches or new therapy areas. Do we see that over the next two to three years, the kind of performance that we are looking to deliver in the emerging markets should be better than what we have previously done, at least in the last five years? No. If you see our last previous also, I mean, you leave out year to year variations, and there are so many factors which go into the play.

50:04 Like, current last year, it was purely a geopolitical issue. There was nothing related to Ajanta Pharma's legal companies, and it impacted everyone. So our performance was largely driven by the external factors most of the banks, not so much by the internal. Listing. And in most of office, we will see our Asia and Africa. I think last three years, if you see my average of CAGR, I think we are doing around 13 to 15% of CAGR. So... And we are optimistic that... I think Ajanta's story is not a quarter story. Ajanta's story is not 0.5 story. It is not a one year story. It has to be seen in a three year horizon and plus. So we could have a quarter where the sales are slightly depressed, next quarter elevated, but if you see average over year over year, three years trajectory, we've been able to post a good growth.

50:53 So we remain we we remain optimistic. We feel that Emerging markets, we have all the growth drivers in place, so we should continue to post good good growth. Okay. Okay. Thank you, sir. That's it from my side. Yeah. Thank you. Next question comes from the line of Harshil Patel with Ask Wealth Advisors. Please go ahead. Thanks for the follow-up, sir. Sir, just one thing I wanted to understand. This is for the India business. We've got our four therapy lines, which are kind of accounting for a major chunk of the growth in India. And recently, the two new have been added. So as we've got... We've guided for a mid teens kind of a growth in '27.

51:39 And maybe, you know, is there any comment that you could give as to any specific therapy that would sustain a stronger growth or probably is susceptible to some weaknesses or something like that for FY '27? And going forward, larger period for '28 or something, Should we assume on a covered market basis, we'll be ahead of the IPM and something like that? If you can say Sorry. Will I will restrict my comments to the current year. If you have already seen in the first half or maybe the MAC basis, we are growing much faster than the IPM growth rates in each specialty.

52:27 So whether it was of style, even though Ajanta is the number one ranked company in ophthalmology, including derma as well as pain. Correct. In vascular, we are almost marginally better. So Okay. So we're doing well. And so it is with gynecology and nephro. However, the base remains very small. So the growth really is not worth talking about. So next year, I think we will come to that maybe in q four when we when we look at the guidance for the FY '28. But so far, currently, we are we are okay. We will be able to maintain these growth rates so far. Okay.

53:12 Okay. That's helpful, sir. Thank you. Thank you. Thank you. A reminder to all the participants, have you not pressed star one to answer question. Next question comes from the line of with Bob Capital. Please go ahead. Thank you for the call, Wab. Sir, if you can just help us with the constant currency growth for The US market. Constant currency growth is about 3030% and high. I think it's it's in the range of about 30, 35. Yeah. For the first half, it's about 35% or... Yeah. And for the second quarter, it's, I think, about... Between 30, 35%.

53:59 Yeah. Okay. And, sir, if you can help us with the CC growth for Asia and Africa as well? I think I don't have those figures right now with me, but you can consider about four to 5% is the currency currency exchange gain, which we've seen in in the entire export business, whether it is Asia, Africa or U. S, it would be slightly higher also, I think about there. Sure. That's it from my side. Thank you. Ladies and gentlemen, that was the last question for today. We have reached the end of question and answer session. I now hand the conference over to Mr.

54:46 Yogesh Agarwal for closing comments. Thank you, everyone, for joining us today. In case you have any further questions that remain unanswered, please feel free to reach out to our Investor Relations team. Thank you. Thank you. On behalf of Ajanta Pharma, that concludes this conference. Thank you for joining us. You may now disconnect.