Mankind Pharma (NSE:MANKIND) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to MANKIND Pharma Limited Q1 FY 'twenty seven 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. Please note that this meeting is being recorded. I now hand the conference over to Mr. Archit Gupta from MANKIND Pharma Limited. Thank you, and over to you, sir. Thank you, Yashushi. Good evening, everyone, and thank you for joining us for our first quarter FY 'twenty seven earnings conference call. On call today, we have Mr. Rajiv Tuneja, our Vice Chairman and Managing Director Mr. Sheetal Arora, Chief Executive Officer and Board of Directors Mr. Sudipta Roy, Senior President, Sales and Marketing Mr. Ashutosh Daban, Global Chief Financial Officer and Mr. Prakash Agarwal, President, Strategy.

0:54 We will commence today's call with opening remarks from Mr. Adi Tunisia, who will provide an overview of the quarter, followed by key business updates from Mr. Sritha Navindra. Mr. Ashokar Thawan will then share the detailed financial performance for the quarter, following which we will open the floor for the Q and A session. Before we begin, please note that today's discussion may include certain forward looking statements based on management's current expectations. These statements are subject to various risks and uncertainties that may cause actual results to differ materially, and MANKIND does not undertake any obligation to update or revise these statements in the future. Please refer to the detailed disclaimer available in the investor presentation uploaded on our website.

1:43 With that, I now hand over the call to Rajiv sir for his remarks. Thank you, Ashish, and a very good evening to all. Welcome to quarter one twenty seven earnings call. Our disciplined execution and strengthening business fundamentals resulted in improvements across key operating and financial metrics in quarter one twenty seven, laying the foundation to deliver a sustainable growth. During the quarter, overall revenue increased 4,031 crore, up 13% year on year with an EBITDA of $10.60 crore and EBITDA margin improving by two fifty bps year on year to 26.3%.

2:31 Revenue from the domestic business, excluding consumer healthcare, increased by 11% year on year to 3,180 crore quarter one, 7%, led by double digit growth in base business and a strong growth momentum in chronic and BSC specialty business. The secondary sales as well IQVIA grew 12.7% during the quarter, led by healthy volume growth of 4.7%, which increased by two twenty bps year on year. Growth was supported by continued strong momentum in chronic portfolio and outperformance in the gastro white beans gyneec segment, which led to growth recovery in acute business.

3:22 In recent years, IPM has witnessed a significant shift towards chronic and specialized therapies, driven largely by the rising prevalence of chronic diseases and changing lifestyle. In line with this trend, we are steadily expanding our presence in chronic and specialty therapies while continuing to strengthen our own quality specialty business. I'm delighted to share that our focused initiatives across key chronic therapies have translated into increase of 80 bps year on year in our chronic share, excluding BSC to 40%, primarily driven by strong growth of 19.4% in Cardiac, 12.7% in Antidiabetic.

4:18 We maintain we remain focused on increasing our chronic share to 50% in medium term. To further strengthen our presence in multi specialty business, we have launched a new division, Vistar, which would help scale some of the lesser focused brands in existing divisions. Moving ahead, our consumer health care business delivered a revenue of $2.46 crore in quarter one, seven, partly impacted by discounted cash and carry business. Despite softer growth, we gained market share in key brands, MANKIND, Dragon Innos, Airsoft. Also, our modern trade and e commerce share increased to 15% from 11% a year ago, supported by 38% growth in that channel.

5:13 Innovation and specialization continue to remain central to our long term strategy, and we are steadily building differentiating science led pipeline that complement our existing portfolio. We've also partnered with de novo science to launch an AI led drug discovery program, making an important step in strengthening our innovation driven technology enabled R and D capabilities. We remain committed to deliver innovative science backed products at affordable prices, ensuring across the country and driving sustainable long term growth. I will now invite Chetan to walk you through more details on our business performance.

6:02 Good evening, Evan, and thank you for joining us for MANKIND Pharma's quarter one financial year 'twenty seven earnings call. It is a pleasure to connect with all of you today. Financially, 2027 started with a healthy growth rate, turning forward the momentum from last few quarters as we continue to witness sequential improvement across our businesses. Let me begin with our overall domestic business. In quarter one financial year twenty seven, revenue from our domestic business increased by 10.5% year on year to INR 3,426 crores. This growth was driven by a 15.8% increase in our chronic portfolio, growth recovery in the portfolio and strong double digit growth in BS.

6:56 Let me share some key highlights for the quarter. Starting with our product business, an important long term growth driver for us. In antidiabetics, excluding the peptide, we outperformed IPM by 1.1x. Supply chain brand family continues to demonstrate strong momentum, delivering 49% year on year growth in quarter one financial year twenty seven. In Cardiac, we outperformed IPM by 1.1 times, growing 19.4% year on year. Our Telmican family grew approximately 41% year on year, while Lupiro and Staxter grew 3031%, respectively. Coming to Acute Therapy, our acute portfolio has steadily recovered and is now broadly in line with IT and improving from 6.1% in quarter one financial year 'twenty six to 10.9% in quarter one financial year 'twenty nine.

7:58 Our guest portfolio outperformed the market by 1.2% ITM, growing at 13.6% year on year with 1.8 times our performance in pandemic. In gynecology, we delivered 12.7% year on year growth ahead of ITM growth of 12.1%, primarily led by continued strong double digit growth in our IV and portfolio, up 39% in both polygraph and Hymnom and 20% growth in that is 1.5 times of market growth. We continue to see healthy momentum in VMN growing 19.3% year on year, while anti infective saw steady recovery from minus 1.1% in quarter four financial year twenty twenty to 3.6% year on year in quarter one financial year twenty twenty.

8:54 Our strategic leadership continues to remain one of the strongest indicator of the sustainability of our business. We continue to hold the number one position in prescription with 15.2% in quarter one financial year twenty twenty. This leadership is underpinned by the trust we have earned from doctors over a decade, driven by consistent quality, affordability, and distinct. Moving to our interest business, revenue for the quarter grew 29% year on year to $60.05 crores. As we move forward, our strategic priorities remain clear to drive scale with profitability, strengthen our presence in chronic and specialty therapy, expand our global footprint with differentiated portfolio and accelerate innovation and execution.

9:54 Equally important in our commitment in fostering talent and nurturing a culture of collaboration and excellence. We aim to build a future ready healthcare organization that delivers sustainable long term growth. While staying true to our purpose of making quality healthcare more acceptable and affordable. With that, I would now like to hand over the call to Ashutosheet, who will take you through the financial performance in greater detail. Thank you so much. Thanks, Chetanjit. A very good evening, everyone. It's good to have you all with us today. I will now take you through the Q quarter one financial year 'twenty seven financial update. Our revenue from operations during quarter one FY 'twenty seven has increased by 12.9% year on year basis to INR 4,031 crores as compared to INR 3,570 crores in quarter one FY 'twenty six.

10:59 This was led by strong growth in BSV specialty business and 29% growth in the international business. Our gross margins for the quarter has increased by two thirty basis point year on year basis to 72.8% from 70.5% in quarter one FY 'twenty six and sixty basis point increase on quarter on quarter basis. This year on year increase is primarily driven by three factors. Firstly, the impact of sales price increase, what we have taken. Secondly, a better sales mix as our contribution has increased by 120 basis point on a year on year basis.

11:50 And lastly, there has been a favorable base effect as quarter one last year, the gross margins were compressed due to certain inventory related accruals taken for slow and nonmoving items. Our reported EBITDA margin for the quarter has increased to 26.3 as compared to 23.8% in quarter one FY 'twenty six. This increase of two fifty basis point is primarily driven by two factors. Two thirty basis point increase is from the gross margin expansion and the balance 20 basis point benefit has come from the operating leverage.

12:40 The R and D expenses for the quarter was INR 98 crores, which is at 2.4% of sales and is higher than R and D spend of 2.2% of sales as incurred during quarter one FY 'twenty six. This 2.4 is lower than our guidance of 2.8% to 3% for the full year FY 'twenty seven. In finance cost for quarter one FY 'twenty seven has declined to INR 110 crores from INR 142 crores during Q4 FY 'twenty six.

13:27 This reduction was primarily driven by the impact of the impairment of NCD tranche of INR $12.50 crores in quarter one FY 'twenty seven. In quarter one FY 'twenty seven, the depreciation and amortization expenses was broadly in line at INR $2.26 crores as compared to INR $2.19 crores in quarter one FY 'twenty six. The effective tax rate for quarter one FY 'twenty seven was at 25.4% as compared to 17.7% in quarter one FY 'twenty six.

14:18 This increase in effective tax rate is due to adoption of new tax regime this financial year following the expiry of tax exemption period for our Sikkim plant. The profit after tax for quarter one FY 'twenty seven grew by 29.1% year on year to INR $5.74 crores with flat margin improving to 14.2% during the quarter as compared to 12.5% in quarter one FY 'twenty six, resulting in an increase of 170 basis point. This growth was primarily driven by stronger EBITDA margins and lower financial cost, which has got offset by increased effective tax rate.

15:15 Our diluted EPS is INR 13.7 per share of rupee 1 paid for the quarter for the current quarter. The cash EPS, which is EPS adjusted for noncash items like depreciation and amortization, has increased during the quarter to INR 19.2 from INR 15.9 in quarter one FY 'twenty six, which is an increase of 20.8% year on year basis. The net operating working capital days for the quarter on trailing twelve month basis has increased to fifty two days as compared to forty eight days in the corresponding period last year, which is mainly due to increased inventory levels.

16:12 In quarter one FY 'twenty seven, our cash flow to EBITDA ratio has decreased to 77% as compared to 99% in quarter one FY 'twenty six. This drop of 22% in cash flow to EBITDA ratio is a combination of higher effective tax rate, working capital and base effect in quarter one FY 'twenty six. Our CapEx spend during the quarter has increased to INR 198 crores in quarter one FY 'twenty seven as compared to INR 127 crores in quarter one FY 'twenty six.

16:59 The CapEx as a percentage of revenue is 4.9% of the total revenue, which is lower than our guidance of 6% to 7% of revenue for FY 'twenty seven. In line with our prudent financial strategy, we reduced our net debt to INR 3,377 crores as of 06/30/2026, resulting in the net debt to adjusted EBITDA ratio of 0.9x in Q1 FY 'twenty seven, and we remain on track to repay the acquisition related debt by FY 'twenty eight.

17:46 With this, we conclude our financial update and welcome any questions which you may have. Over to you, Venkatesh. So we are open for questions. Thank you very much. Yes. Thank you very much. We will now begin with the question and answer session. Kindly announce your company name and then proceed with your question. Allow us a moment, please. Mister Pankaj Tibriwal? Please announce your company name and proceed with your question. Yeah. Thank you. This is Pankaj Tibriwal from Ikega Asset Management. Am I audible? Yes. Yes. Yes. You are audible. Okay. Just from a India business perspective, just wanted to get a sense that always we have talked about India business growing at 1.2 to 1.3 times the ITM growth.

18:44 Last year was obviously not a great year. And this year also, the start has not been as great because the ITM itself, the market has been very, very strong. How do you foresee the remaining nine months for this year from a India growth perspective? And then I'll come to my second question on PSV. Thank you. The... In Pankaj, like, in the flow, our total growth perspective, I will tell you that we have already returned to double digit growth. And more importantly, the quality of growth has improved. If we see our growing portfolio, which is growing by 15.8%, Accurative also recovered to around 10.9%. And BSP showing strong growth in first quarter of this year.

19:30 Even the volume growth has improved to 4.57%, which was 2.3% in last financial year '26. If looking at 200% of nine months looking ahead, we are confident of progressively outperforming IPM because our growth is being driven by structurally work, not short term sector. The building blocks are in place. We are increasing our clinic mix, where we are currently at about 40% and see the potential to move towards 50% over the next four to five years. Secondly, we are scaling our hospital business where our market share is still significantly below our peers, given that a long runway for growth. Third, we are launching a new focused business with non focused brand in existing business.

20:19 And fourth, improving performance in underpenetrated state where our market ranking is below our national standing, creating a meaningful opportunity to gain share. So these are the long term growth drivers that should enable us to consistently gain market share and progressively outperform. I hope that So in terms of... Can we hear from here on expect MANKIND to consistently outperform ITM with the field force change, everything we have done and all the long term drivers we are talking about? Is it a fair expectation? Yeah. We will definitely grow double digit, the major we are taking, increasing our hospital penetration, the non focus plan will be promoted in.

21:06 So definitely double digit growth will help in a time to come. Okay. The second question is on BSV. I remember last year when we started, we spoke about 18%, 20% growth on BSV, whereas actual growth was about 56% and largely coming from export and domestic saw a decline. When you look at this year now, obviously, first quarter has started on a decent note. How do we see BSV growth spanning out for this? So let me correct you, Mankind. So last year, BSV growth was around the early teams, well spread across domestic and international. This quarter, the growth is around 21%.

21:51 Mhmm. And we have given guidance of high double digit growth, which is high teens. And if we break that into domestic and export, how should we think about? Yeah. So BSE domestic is around 17%. Mhmm. And it's actually around 25. Okay. That that helps us. Thank you, and wish you guys all the best. Thank you so much. Thank you. Next is Rashmi Shetty. Rashmi, kindly announce your company name and proceed with your question. Yeah. Hi. Am I audible? Yes. You are. Yeah. Thanks for the opportunity. I'm from Dollar Capital. So one question on this net working capital. Do know you mentioned that, you know, the inventory has been increased, and currently, the working capital is around fifty two days.

22:44 So, you know, at the end of the year, also, it will remain elevated, you know, or it is expected to decline? Oh, yeah. So we expect it to come down by the year end because of some price advantages, etcetera. So we our inventory levels are, I would say, slightly above the normal trends, what we used to maintain. So we can expect rationalization in the inventory levels in the coming quarters. Okay. And this inventory level, which was high, was it because of, you know, high raw material prices? Anything which you all have witnessed during the quarter? So since we were sitting on a comfortable inventory level, so therefore, if you would have observed the gross margins are pretty healthy and so they are at 72.8.

23:38 So the price increase and impact has not flown into the financials because of the good inventory level. However, the next quarter also, we may see a compression indeed in the gross margins level because the prices of the commodities and the dollar, etcetera, has increased. Having said that, we would like to maintain the same guidance what we gave the gross margins to be upward of 71% and the EBITDA guidance to be 25.5% to 26.5. So Okay. Which is taking into account even the impact coming from the high raw material prices. Absolutely. Yes. Yeah. Another inflation...

24:23 Inflationary cost. Yep. Okay. And on the consumer health care business, you know, I'm seeing that some some... Again, you know, y'all have given a very low growth of around 3.8%, and you have discontinued some cash and carry business. So if you can explain that in detail, what exactly you all have done, and how should we look at this ease of business? We maintain the... We're going to basically doing kind of a business. It should have a very strong foundation. So we are able to found that something has to be done. We have done it done that. I mean, cash and carry business was basically impacting the churn rate. So we just stopped sales over there. But as the whole market has been a bit softer.

25:14 But on the second side, as far as the market share is concerned, MANKIND has increased, pregnant share has increased, Gysofas she hasn't increased. So we see going forward with high teen to double digit growth in second quarter onwards. In second quarter onwards. Okay. That is in the remaining nine months you're expecting. Right. Okay. And what about the debt levels, you know, we are expecting a complete repayment by FY twenty eight? Yeah. Acquisition related debt. Acquisition related debt. Okay. That was... Yeah. Okay.

26:02 That is something... You know, that was the doubt. Thank you so much. That's it from my side. Thank you. Next question is from. Kunal, kindly announce your company name and proceed with your question, please. Hi. This is here from Macquarie. First question for on the cash EPS number that you you are sharing of around 19 rupees for the quarter, that excludes the entire depreciation and amortization or just the acquisition related amortization for BSU? This is after all these adjustments. This is a reported EPS. After adjustments of all the tax and depreciation amortization.

26:47 The full depreciation amortization has been taken out? Yes, yes, yes. But that's not the normal practice the way large pharma does, right? They just remove the acquisition related amortization to arrive at cash EPS. So for the cash EPS, yes, cash EPS is after depreciation, amortization, and the impairment expenses. The cash EPS is the cash portion. Yeah. Right. But if I just remove the acquisition related amortization, let's say, ESG related amortization, then what would be the cash EPS for the quarter and keep the Mankind related depreciation and amortization still in the numbers? Only the total depreciation is in the range of $2.20 CR. And out of that, you can broadly 50% towards allocated towards the acquisition related depreciation.

27:43 So we can do the calculation and share with you numbers subsequently. Or we can take this offline. Yeah. Because large pharma company only takes the acquisition related amortization out when they calculate cash here. So... Yeah. Second question on... Let's say, with the launch of the GLP one molecules, you know, and then we are kind of excluding tirzepatide when we kind of say that we are outperforming, you know, the anti diabetes. So just from the covered market perspective, how would have we moved, let's say, from a three year perspective? Let's say, maybe FY '22, what was the proportion of IPM we were... Was under our covered market versus what it would be now.

28:32 Don't know. Has there been a meaningful change there, which is what is leading, you know, to this gap between the IPM growth versus our growth? And what's the strategy to kind of come back to that covered market proportion that we earlier had? So, Gonal, if you see the molecules that we've been launching over the last three years, if you see glyphate, if you see the newer molecules on d b p four and g l t two, we are among the top eight, top nine players. Historically, we were always in the older molecules. In the diabetes, we have also launched insulin.

29:17 So there's a lot of new initiative in terms of launches and being the top seven, top eight players. Historically, these are not very big in anti diabetes. And if you see, we've been outperforming anti diabetes as a segment of 1.2 to 1.33 times. Having said that, all GLP, etcetera, since we are very cautious of... In terms of... You know, very strategic in terms of launching GFP. Excluding that, we are still outperforming. But now GFP, since it's generic, we have taken that into base. We are just saying excluding the zepatide. So at GFP, we would have done better. So 1.2 to 1.3 x, we hope that we'll come back to that overall covered market that we were doing.

30:06 And covered market except for tisapartite, you don't think that there is meaningful change for us? Yeah. Exactly. Okay. And lastly, for, I mean, Rajiv, sir, I mean, what's driving the cautiousness around launching the GLP one? We have always been aggressive in terms of new product launches. Right? So why the conservatism here? We know less especially if we are doing well in some of the newer therapies of oral anti diabetic like SGLT two and DPP four, why are we holding that? Advantage of launching some product in the first phase, in the sense that if one, three, four companies are launching a year, one of those, which surely go all out. But somehow, when we saw that so many companies are launching, right now, we see more than 14 companies, 35 clients from the branch are there. Everything is there. One,.

31:08 So I I thought was, let this turn on. Let's wait some ways and see what basically happens. And along with this, not only launching this as a one molecule, launching as a therapy. I mean, we have... So so that that kind of approach we have taken, it totally... It's not a partial approach. It's a strategic approach, actually. Why do I even put you this sourcing in something which tomorrow is very, very competitive? That is hard. And we are... Honestly, we are... To some sense, we are going right in that. So we are now working on, but we've been launched two brands from two divisions, one in and one is this diabetes division.

31:56 Along with protein, along with other supplements so that we can have... We can basically focus on the complete therapy instead of only this GMP. Okay. I I still... I mean, you know, don't get it because I I still believe hypertension would be more competitive than GLP one. Right? But we are there in hypertensive therapy. So why the cautious approach? You know, since we have been always been aggressive and we have done well historically. So See, it's it's very cautious cautious approach. Maybe that that the time pass, let you call it pass, you'll see that.

32:43 And, well, just to give a data point to you, so five years back, fiscal twenty one, our covered market was only 56%, and we were ranked 10 in anti diabetes segment. If I see fiscal twenty six, our covered market has increased to 74% of the market, and we are ranked seven o and with the market share of 4.5%. So there's a big change in the covered market, and our ranks have also improved by three positions. And then this increase in covered market, shouldn't it have accelerated our growth vis a vis market? Yeah. That's what we said. So if you have these products and you are among the top seven top eight players, so you would have seen an accelerated growth with these LGNT two and PPB Poles as launches.

33:34 This is for anti diabetic, are talking about, not for the Mankind. Anti diabetic. Okay. Yeah. So... Oh, I I know. Diabetes, they increase from fifty six percent to seventy four percent. As you know, we launched Insulet, DPP four, and SGLT. Okay. My my question was more from overall market prospect, like, you know, MANKIND's overall domestic formulation business perspective as to have we seen a, you know, a different swing in terms of the covered market, which could also be one of the driver for us to be kind of missing on the IPM growth. No. No. So in terms of covered market from the IPM perspective, we have added, for example, respiratory inhalation product, which was not there.

34:19 If you see in the anti diabetes that I just mentioned, in a... Insulins, which was not there. Respiratory inhalers is not there. We have added that. Cardio, a lot of cholesterol lowering, lipid lowering profile products we have launched. So there's a lot of increase in covered market. It is also with the focus of some of the in licensing product. For example, recently, we had a CNS laboratory from Roche. So there's a lot of initiatives we've adding for on it as well as specialty products to increase our. If you are referring to new launches, so new launches have been softer as compared to IBM. If you look at q one, the new the new introduction, and I contribution is 2.8% as compared to IBM 4.1%.

35:09 So if you are referring to these lower growth rates, so this is one of the contributor to that. Okay. Okay. And and IPM would include all the GLP ones for the NI, do you think? Because, yeah, that's f and a last one. Correct. Okay. Okay. Including GLP. Okay. Thank you, and all the best. Thank you. Next question is from Neha Madpuria. Neha, kindly announce your company name and proceed with your question. Yes. Thanks for taking my question. This is Neha from Bank of America. First, just an extension on the new product question. I think we had mentioned last year that you know, because of the change in the MR, etcetera, we we weren't launching as many new products, which was one of the reasons for the lag. So now that things are normalized, you know, should we expect a higher launch momentum excluding some of course, but higher launch momentum and therefore that growth to narrow meaningfully going forward? Or do you think that takes time to play out?

36:10 Mankind, can you take this, miss? Yeah. So if you see today, our launches are very strategic, I think, what Rajesh has told. We specifically launch limited products and individual products try to make it big. So if you see in recent launches, our has become number one, which is our. Even in case of antidiabetics like empagliflozin, if you see today, it is it is within the top three brands of new launches. So wherever we are launching new brands, we are making it big. But, yes, we are being selective in new launches, and that has been a very strategic move for us. Understood. And my second question is on the gross margin. After the start, you mentioned gross margin guidance of, you know, 71 plus percent, I think, for the full year.

37:02 You know, given where we are in the quarters, I understand there's some cost pressures from West Asia that we might see. But is any reason for the conservatism besides the West Asia price impact that we might see, particularly given the higher chronic mix that we're seeing versus last year? Sorry. I... Yeah. Can you you please repeat that question? I lost your last last few words on that. Are you referring to the conservativeness on the gross margins part? Yes. Yes, sir. Yes, sir. I mean, other than the West Asia crisis, any other reason for us to be conservative given that, you know, India growth is picking up even if if it didn't that, our chronic share is picking up. So, you know, it seems like the revenue mix is a lot cheaper. So as against the 72 a half percent, why is the 71% guidance?

37:56 Yeah. So that's the that's the only caveat we are quoting because of the West Asia crisis. So we are taking a conservative approach. Alright. Okay. So the only reason is that. So, Neha, the overall EBITDA guidance has not changed. So we... So that's a reliable guidance of 25.5 to 26.5. Alright, sir. Okay. Thank you so much. Thank you. Next question is from. Kindly announce your company name and go ahead with your question, please. Hi. Good evening. This is Vinod from Elara. Just one quick follow-up question. Recently, you had done acquired this brand, Revotral, from Roche.

38:46 How big is that? And what is the potential there? So, if you see the IQ numbers, it is in the region of INR 20 crores to INR 30 crores. And we expect that it will give lot of entry to lot of specialists because it's, you know, a textbook brand in terms of the molecule. So we expect that the growth will start, but, you know, first, the entry to growth is important so that we are calling on the process and making progress in terms of breaking with the specialist confidence. Okay. Do you think it can potentially grow up to be a hundred, two hundred grand?

39:34 Is that the thought process behind your acquisition? So aspiration is always there, but it will take time. I mean, these things CNS is a category takes time as it's a very specialist portfolio. But aspiration is to make a good portfolio on the CNS side as well. Got it. Thank you. I'll turn back to you. Thank you. Next question is from give me a moment. Next question is from Ritika. Ritika, kindly announce your company name and go ahead with your question, please. Ritika, your line is on... Can you please unmute your line? You're on mute.

40:23 Ritika Agarwal? Kindly unmute your audio and go ahead with your question, please. There is no response. Can we take the next one? Yes. It is from Siddharth Nagandhi. Siddharth, please announce your company name and proceed with your question. Hi. Thanks for taking my question, and I'd be glad to see reinsurers of recovery. You know, there were certain actions that you've mentioned last time that you were taking in terms of reorganization, in terms of focus, could you give us some metrics around attrition and around, you know, share gains or or also...

41:20 Or sort of, you know, outperforming certain therapies... Sub therapies that you've seen from that reorganization to help us better understand that, yes, these are green shoots of recovery? That's question one. Second question is, while I understand that the cash and carry business was a dent on general trade and and that channel conflict is is obvious. But if if one were to stop with cash and carry business and there is a brand pull, one would see higher general trade sales. Right? Why is it that why is it that you did not see that come back to higher general trade sales and and, you know, instead had lower growth? Yeah.

42:09 Those were my two question. I think the first one in terms of what are the green shoots. So first, think the acute business. So if I just talk about gas flow from a minus 2.5% in Q2, we have seen sequential recovery to 6.9% in Q3, 9.2% in Q4 and now 13.6%. Vitamin FIC, 5%, moving to 8% in Q3. Q4 was 12.5% and now 19.3 Similarly, have seen Ryanair moving from 6.9 to now 12.7% in Q1. Ophthalmology, 6.2% in Q2 was moved to 14.9, 18.5 and now 17.5 in Q1. So across acute therapies, if you see, we have seen improvement. Our growth in acute therapy had gone down to 3.3% in q two.

43:03 We are now at par with the industry at 10.9%. So 60% of the portfolio is still in acute for us. So now we are at par, and that's why you've seen a double digit growth for us. Coming to chronic cardiac, we've seen improvement from fourteen point five percent in Q2 to now nineteen point four percent in Q1. Similarly, you'll see in anti diabetes, eleven point four percent, moving all the way to twelve point seven percent. Respiratory, you see very strong growth continues in the chronic respiratory side, 20% plus across the last four quarters. And chronic has moved up from 12.2% in q two of last year to now 15.8%. This overall resulted in a 6.3% overall growth in q two to now 12.7% growth in q one of fiscal twenty seven.

43:56 So green shoots both in acute and chronic, we are able to see. And as she told you mentioned that every quarter, we are trying to improve. Got it. And any any metric on the attrition side whether that has improved? How are you seeing that play out after the reorg? So, you know, in the last one and a half year, we have seen a lot of shuffling in terms of realignment, improving process, improving, you know, traction in terms of doctor visits, etcetera. So attrition and our cases are now in control. It has dropped significantly. It has come back to the normal levels. And and you can see the results of sequential improvement because if attrition is higher, then you can't see the improvement. Got it. And and some color on the consumer products business that I spoke about.

44:45 So there's one business you are supposed to really understand that this market is very dynamic. So generally, and gradually is being this e commerce and monetary is a share of the trade. So we cannot really even segregate that general trade is separate and this e commerce is separate. The same consumer buy the same drinks. So while we basically do corrective action in cash and carry. On the second side, our voluntary consumer have really grown a lot. Earlier this year was last year, the share was 11%. Now the share is 15%, supported by a growth of 38%. So on one side, the growth is there. On the second side, we control certain things, and that's the reason.

45:30 What I I say, the market has been a bit softer in consumer side. That's the reason for that. But, again, the positive side of this piece that MANKIND share category, in Pragalu shared in pregnancy test, and far, and have improved. Our next question is from Ritika Agarwal. Ritika, kindly announce your company name and proceed with your question. Yes. This is Ritika from ValueQuest. My question is an extension to earlier participant's question on semaglutide.

46:19 So earlier, we were commenting that we'll be in the first wave of launch, and we've also tied up. And even at that time, the understanding was there will be 20 to 30 players launching the drug. So what changed or maybe thought process or maybe what went wrong that we couldn't launch this drug? So you... I mean, never said that we were the first few companies to launch this product. We could not launch in the first phase, and that's one reason we took a strategic evolve. And in those... When this planning was happening, we were basically having a different... Our focus was basically on correcting the overall company, actually. The issue was done. We corrected a lot of things in the company. So we thought policy correct these things, then we've gone to product.

47:12 So at different times, you create different strategies, and that's probably the thing we started launching. I just like to add, because of huge competition, price drop was very significant. And since we are, you know, taking it from a partner, it doesn't make sense to do a price war rather we have got strategic. We are, you know, promoting to top level KOLs. And as Rajeeji highlighted earlier that we are looking from a therapy approach. So if we just play with the price war, this will not be a profitable launch. And just just an additional information, as you mentioned, we have already launched this product into two segments. One is anti diabetes, and the second one is Gynad.

47:59 But we expect that it will be a, you know, a gradual makeup for us since it's a very hypercommodative, and there's a lot of price war happening at them. Sure. And any... Anything on the export side? Are we looking to launch this product? No. No. We don't have an export strategy for Okay. Sure. That's it for me. Thank you so much. Thank you. We have a follow-up question from Rashmi Shetty. Rashmi, please proceed with your question. Yeah. I'm audible. Right? Yes. You are. Yeah. So on the export business also, we have a very strong growth this quarter. So what is driving this growth? And, you know, one...

48:47 I think one reason you mentioned that the BSV has also grown strong, But ex BSV also, it is looking pretty strong. So whether U. S. Is contributing significantly or any one off opportunities have you benefited during the quarter? So as I mentioned, the BSC has been by 25%, and also US has done well. We had a couple of launches. And if you see the currency is also held to the extent of 12 to 13%. So put together, it is, you know, as we... It is in line with our guidance of high teens and the constant currency. So high teens, which you're talking about for both the businesses together. Right? MANKIND plus BSC?

49:35 Yes. Correct. Okay. And earlier, we used to talk related to one Optal product, you know, which used to contribute higher compared to the other products in The US. That was more of a one off. Had you seen any competition, and is it sitting in the base, or it is still Right. So last year, only it came into base. It was last to last year in FY '25 that was in base. So that was the bulky... The bulky was in FY '25, and that normalized in FY '26. Okay. Got it. And one question to Prakash related to BSV. For this quarter and for FY '26, out of the total BSC, the proportion of domestic business, especially for FY 'twenty six, I want to understand the proportion of domestic business to export ratio is high or it is lower?

50:33 Also, the ratio domestic to international is in the... For last year, you are saying? Yeah. For FY '26. Yeah. Fifty fifty. Yeah. It's around fifty fifty last year. Fifty fifty. And this year also fifty fifty. Okay. And this year also, it is expected to be in that range. With a range plus minus 2%. Okay. Got it. Thank you. Thank you so much. Thank you. Thank you. For any questions, participants may please use the raise an option available on their screen. To ask a question, please use the raise hand option available on your screen.

51:35 We have a question from Gaurav Bhama. Kindly announce your company name and proceed with your question. Sir. Good morning, Gaurav Bhama. This is from JN Financial. Am I audible? Please go ahead. Yes. I just wanted to double check what was the guidance given for consumer health care 2Q onwards. We have said the high single digit to double digit. Next is Shireesh Sawarma. Kindly announce your company name and proceed with your question. Shireesh? I'm audible. Hello? Yes. Please go ahead. Hi. I'm Shireesh. I'm from Bernstein.

52:22 I have two questions. Firstly, can you... If if I may not have understood properly, can you explain what has what has been the recent scenario of of BSC and how it's... Like, what exactly are we doing to integrate it properly? And secondly, on the IBM guidance of domestic, you guys guided up... Around early teens. So do you expect the IBM to also grow at that rate, or will you be growing above IBM? Let me take your second question first. So as per our guidance, in the last call, we said that we expect sequential recovery and expect full year to be double digit growth. Expect running to be better and also expect recovery in the equity business, which we were able to demonstrate in q one also.

53:12 Coming to BSE, in terms of business volume, if you see, we've always maintained that it would be run as an independent operationally, both in the domestic and international. We have tweaked in terms of a little bit on the management side, wherever required, we have added in terms of biotech facility. We have enhanced the R and D biotech facility. So those are the small changes, which we have done from MANKIND, but we actually have run independently by professionals. There is a lot of initiative that has been taken both in domestic and international business. We highlighted that there's a lot of demand creation that is happening for large brands and these are specialist brands like Antidy, Polygraph, others.

54:07 Dynetics overages increased from thirty thirty three thousand in fiscal twenty five to now 37,000. There's a lot of IVF related programs that has been activated. We have more than 80% coverage in the IVF category, which is seeing a very strong growth of 35% plus. And also, there's a lot of clinical work going on in terms of its key products, in terms of clinical trials of expanding market reach for polygraph, which is FSH, and ID, which is result studies, and also some of the anti allergy products, which is global studies. So there's a lot of societal work going on in terms of expanding the domestic business.

54:53 In in in international business, we are seeing, you know, increasing penetration in the existing markets. Plus, we are seeing some of the new approvals in large markets like Russia, FSH. We recently got approval. We also expect the FSH approval in couple of new markets. And there's a lot of initiatives going on in terms of newer products in the existing markets. That's why we've given a a guidance of high team group. Got it. That's that's very helpful. Just one double click on my previous question. About the acute... So chronic, I understand. But in the acute segment, can you, like, specify why are we... Why did we did not do that well as we used to, and how are we, like, going to change things in the upcoming years or quarters?

55:45 We have mentioned a number of times about this, that our 60% business comes from the acute side. In acute, relationship and face value really matters. And maybe even eighteen months back, we did deep correction, removed approximately a good number of people removed and changing new people. This one, the recovery is there. And whenever... I mean, there is a kind of a belief that recovery should be a very strong foundation, recovery happens gradually. And it happens all of a sudden very fast, we don't believe that. So you can see quarter by quarter, things are really improving, and we're quite happy with our performance. We don't expect I mean, MANKIND always believe that prescription is sales. That's all.

56:32 Our policies are like this, that last week sales should not be there. I mean, FARCIA should be very good. So we believe in all those processes. So and what we basically have said that we never said in last couple of quarters that we'll be beating the IPM. We said that we'll have this kind of a growth. Our forecast even this year is that double digit growth will be there, We'll be having this EBITDA of 25.5% or 25... 26.6%. And aspiration is to come back to where we were few years back. For good number of years, we basically have beaten IPM to 1.7 x. A good number of years, 1.3 to 1.4 times. So once you have once you have this kind of a traffic on, you wanna come back to that side. It takes time. We are not in a hurry, but we feel that as every quarter would pass, things will improve, and things are on track.

57:32 Look at from the volume wise, new product wise, as it will. It. Thank you. I now hand the conference over to the management for closing comments. Over to you, sir. Thank you. For any further queries or clarifications, please reach out to us on investor. Relationsmankindpharma dot com. Have a nice day. Thank you, members of the management team. On behalf of MANKIND Pharma, that concludes this meeting. Thank you for joining us, and you may now exit the meeting.