Mankind Pharma (NSE:MANKIND) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to MANKIND Pharma Limited Q2 and H1 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'll now hand the conference over to mister Achid Gupta from MANKIND Pharma Limited. Thank you, and over to you, sir. Thank you, Ashish. Good evening, everyone, and thank you for joining us for our second quarter and h one FY twenty seven earnings conference call. On call today, we have mister Rajiv Puneja, our vice chairman and managing director mister Sheetal Arora, chief executive officer and full time director, mister Aljun Puneja, chief operating officer, doctor Anil Kaur, group chief scientific officer, mister Padipa Roy, senior president, sales and marketing, mister Ashutosh Bhavan, global chief financial officer, and mister Prakash Agrawal, president, strategy and AIR.

1:01 We will begin today's call with mister Rajiv Tunija, who will provide an overview of the quarter followed by key business updates from Mr. Cheetah Dharuga. Mr. Ashutosh Thawad will then take us through the financial performance, after which we will open the floor for Q and A. We proceed, please note that certain statements made during today's call may be forward looking in nature and are based on management's current expectations. These statements are subject to risks and uncertainties that could cause actual results to differ materially. MANKIND undertakes no obligation to update or revise any forward looking statements, whether as a result of the information, future events, or otherwise. Please refer to the detailed disclaimer available in the investor presentation uploaded on on our website earlier today.

1:52 With that, I now hand over the call to Rajesh for his remarks. Thank you,. A very good evening to all of you. Welcome to quarter two and h one financial year twenty seven earning call. At MANKIND, our strategy is centered around three priorities, strengthening our core business, scaling chronic and specialty therapies, and investing in future growth platforms. We made steady progress across each of these during the quarter, resulting in another period of strong operating performance. During the quarter, overall revenue increased to 4,338 crore rupees, up 17% year on year, while EBITDA for the quarter increased by 27.2 to 1,175 crore rupees.

2:48 And the EBITDA margin improved by 210 bps year on year to 27.1%. PSE portfolio continued its 20% growth momentum for the second consecutive quarter led by strong performance in both domestic and international markets. Revenue from domestic business, excluding consumer health care, increased by 15.9% year on year to INR 3,428 crores in quarter two financial year 'twenty seven, driven by strong double digit growth in both Mankind and BSV specialty business.

3:35 MANKIND's strong foundations, combined with disciplined execution over the last few quarters, have resulted in outperforming to IPM in quarter two financial year twenty seven. According to IQVIA, our secondary sales grew by 15.7%, representing a 1.1 outperformance versus the IPM growth of 14.2, excluding telagievitidine. This was largely driven by a 1.2 x volume outperformance, continuous chronic therapies, and trauma recovery in key acute therapies led by gastro and white beans.

4:22 Our initiatives across leadership and free changes, process optimization, focus product portfolio, top list engagement, and extensive use of technology have resulted into improving volume growth trend from point 5% growth in financial year twenty five to 2.3% volume growth in financial year twenty six, 4.7% volume growth in first quarter this year to now outperforming IPM with a volume growth of 6.7% in quarter two.

5:08 One of our key strategy priorities has been to increase the contribution of chronic therapies through focused initiatives, including medical marketing, new product launches, in license, and selective brand acquisition. We have consistently outperformed the chronic market with... And and strengthened our position in key therapies area. As a as a result, our chronic share, excluding BSC, expanded by 80 bps year on year to 37.4%, led by 1.1 x outperformance in cardio and anti diabetes, again, excluding tel...

5:56 Teledipidide, and a strong 1.9 x outperformance in chronic respiratory during the quarter. While we're expanding our recently launched multi therapy mass market division, Vistar, we are also progressing towards the launch of new divisions in cardio, gastro, and dental therapies. These divisions will enhance focus on high potential brands, improve specialist engagement to accelerate growth. Our consumer health care business delivered a revenue of $2.29 crore in quarter two twenty seven. Impacted by slower off take in category for the industry and some reason impacting East and south despite softer growth became market share in key brands like MANKOS and.

6:54 Our modern trade and ecommerce share increased to 18% from 12% a year, supported by 55% growth in that channel. Innovation and specializations continue to remain central to our long term strategy, and we are still be building differentiated science led pipeline that complement our existing portfolio, And this year, our enhanced pipeline asset, MKP11093, a best in class, has received funding from PRIP program by the government of India, a first for MANKIND.

7:39 Beginning on this journey, we recently announced our strategic acquisition of Arm Cell Therapeutics, providing us access to next generation CAR T cell therapy platform being developed by highly experienced founding team. We view this as an important step towards creating an innovation platform for future growth as we continue to strengthen our leadership across acute therapies with scale in chronic and specialty segments and selectively invest in innovation platforms within being confident in our ability to deliver sustainable growth and accelerate long term value for patients and shareholders.

8:25 Now I invite Shital to walk you through more details on our business forms. Good evening, everyone, and thank you for joining us for MANKIND Pharma's quarter two and actual financial year twenty seventh earnings call. It is a pleasure to have you with us as we share our performance and key development for the quarter. As our business continue to evolve, we are seeing the benefit of steadily growing need over the past few years. The quarter was marked by the strong operating momentum and continued advancement of our long term priorities. Let me take you through the key developments. Our domestic business delivered another quarter of strong growth with revenue increasing by 14.8% year on year to 3,657 crore.

9:24 This was driven by 16% growth in MANKIND co domestic ex consumer and mid teen growth in BSP domestic business, partially impacted by muted growth in consumer health care. Importantly, we continue to outperform the IBM by 1.1 times led by 1.1 times outperformance in chronic with 19% year on growth in cardiac and 16% growth in anti damage. Recovery in acute country with 1.1 times outperformance driven by 26% year on year growth in vitamin and vanilla and 19% growth in.

10:10 Further supported by key brands such as Footsteps, Pantomite and Dag Group. Anti Infective continued to recover quarter on quarter with a growth of 5.4% in quarter two financial year twenty seven versus 3.6% in quarter one financial year twenty seven. PSP business also delivered strong momentum with robust growth in three bands. Newmark, 51%, Lolopin, 45%, and Tidy, 37%, and ASVS, 45%. Another encouraging effect is the increasing scale of our brand portfolio.

11:00 We have added nine new brand family with sales over 50 kuru, taking that total to 63 in March, September 26 versus 54 in financial year twenty six. And four grand families with sales over 100 crores, taking that total to 23 from 22 during the same period. This reflects the continued productivity and scalability of our commercial engine. Additionally, we are seeing encouraging traction across our newer brands, including Monarom, Ampaviric, DynomView, Neurobrand PFS, and Pantone Drop.

11:49 While still in the early stage of their life cycle, these brands strengthen our future growth pipeline and have the potential to evolve into meaningful scale over time. Our focused effort to expand our presence in the hospital segment are creating healthy traction. During the quarter, we saw a strong 23% year on year growth in hospital revenues. We see strong long term growth potential in this segment through specialized engagement and targeted launches. Moving to our international business.

12:35 Revenue for the quarter increased by 33% year over year to 680 crores, driven by strong growth in both MANKIND international and BSP Brand based Specialty. BSP continues to increase global adaptation of its specialty portfolio across fertility, critical care, and women's health. Looking ahead, our priorities remain clear. We were driving profitability growth at scale, increasing the contribution of chronic and specialty therapy, expanding our international footprint through a differentiated product portfolio, strengthening our innovation pipeline, and creating long term value through disciplined execution.

13:29 What gives you the greatest confidence is not our numbers, but our people. Every day, more than 27,000 colleagues across every r and d center, offices, and the field carry forward a mankind purpose. We are humbled to grow, ability to learn, honesty in action, and hard work remain our greatest competitive advantage. As we build the next MANKIND, we will remain guided by the same values that has defined us since the day one, integrity, humility, hard work, and an unwavering commitment to improve.

14:17 Our journey continues with confidence, purpose, and optimism. With that, I would now like to hand over the call to Ashutosh Gulgi, who will take you through the financial performance in greater detail. Thank you so much. And thanks, Chitandeep. Good evening, everyone. I'm delighted to have you all with us on our quarterly and h one FY twenty seven earnings call. Let me give you a brief financial highlights of our quarterly performance for quarter two FY 'twenty seven. Our revenue from operations during quarter two FY 'twenty seven has increased by 17.3% year on year basis to INR 4,338 crores as compared to INR 3,697 crores in quarter two FY 'twenty six, driven by strong growth in our base business as well as ESV specialty business.

15:29 Our gross margins for the quarter has increased by 90 basis point year on year basis to 72.2% from 71.3% in quarter two FY twenty six. This year on year increase is primarily driven by three factors. Firstly, the impact of sales price increase, which we have taken. Secondly, the favorable sales mix as our chronic contribution has increased by 80 basis point on a year on year basis. And thirdly, there has been a favorable base effect as quarter two last year.

16:14 Our gross margins were compressed due to GST 2.0 transitioning impact. Our reported EBITDA margin for the quarter has increased to 27.1% as compared to 25% in quarter two FY 'twenty six. This increase of two ten basis point is primarily driven by three factors. 90 basis point increase is from gross margin expansion, reduced r and d expense by 40 basis point, and the balance 80 basis point benefit has come from operating leverage due to sales growth.

17:00 The EBITDA margins for H1 FY 'twenty seven is 26.7%, which has increased by two thirty basis point year on year basis. The improvement is primarily due to increase in gross margins by one sixty basis point, and the balance 70% benefit has come from operating leverage. The r and d expenses for the quarter was rupees 108 crores, which is at 2.5% of sales, and the same is lower than r and d spend of 2.9% of sales during quarter two FY twenty six.

17:47 This 2.5% is lower than our guidance of 3% for the full year FY twenty seven. The finance cost for quarter two FY twenty seven has declined to rupees 105 crores from rupees 110 crores during q one f y twenty seven as q one f y twenty seven had a NCD repayment of 1,250 crores. In quarter two FY 'twenty seven, the depreciation and amortization expenses has increased to INR $2.36 crores as compared to INR $2.22 crores in quarter two FY 'twenty six.

18:40 This is in line with the asset capitalization undertaken during the period. The effective tax rate for h one FY twenty seven was at 24%, which has increased from 17.1% in h one FY twenty six. The increase in effective tax rate is due to adoption of new tax regime this year following the expiry of the tax exemption period. The profit after tax for quarter two FY twenty seven grew by 37.7% year on year basis to rupees $7.16 crores with PAT margins improving to 16.5% during the quarter as compared to 14.1% in quarter two FY 'twenty six, resulting in an increase of two forty basis point.

19:41 This growth was primarily driven by stronger EBITDA margin and lower finance cost, which has got partially offset because of increased ETR. Our diluted EPS is rupees 17.2 per share of rupees 1 paid for the quarter. The cash EPS, which is EPS adjusted for cash item, like depreciation and amortization, has during the quarter to increase 22.9 from rupees 17.7 in quarter two FY twenty six, an increase of 29.1% year on year basis.

20:27 The net operating working capital for the quarter on trailing twelve months basis has increased to fifty one days as compared to forty six days in the corresponding period last year, mainly due to increased working capital. In h one FY twenty seven, our cash flow from operations has increased to rupees $108,119 crore rupees as compared to rupees $1,006,637 crores in h one FY 'twenty six, which which is on a year on year basis an increase of 11.1. In h one FY 'twenty seven, our cash flow to EBITDA ratio has decreased to 81% as compared to 92% in H1 FY 'twenty six.

21:25 The drop of 11% in cash flow to EBITDA is due to increased working capital. Our CapEx spend during the quarter has increased to rupees 214 crores Q seven as compared to the piece $1.63 crores in quarter two FY twenty six. 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 have reduced our net debt to rupees 2,639 crores as on 09/30/2026, resulting in the net debt to adjusted EBITDA ratio of 0.66.

22:26 In quarter two FY 'twenty seven on a trailing twelve months basis. We remain on track to repay the acquisition related debt by FY 'twenty eight. With this, we'll conclude our financial update and welcome any questions which you may have. Over to you, Prakash. We are open for q and a now. Thank you very much. Ladies and gentlemen, we will now begin the question and answer session. If you wish to ask a question, please use the raise hand feature available on the dashboard. We will wait for a moment while the question queue assembles. We'll take our first question from Kindly introduce yourself and go ahead with your question, please.

23:35 Yeah. So I'm Rashmi from Dollar Capital. Am I audible? Yes. You are. Yeah. Congratulations on good set of numbers, and thanks for the opportunity. Sir, what is driving your export business? Because when I'm trying to adjust your numbers, you know, and splitting between your organic and inorganic growth, you know, both seems to look strong this quarter. So what exactly is driving this, and how should we look, you know, for the entire year?., we we gave the guidance of 20% growth rate on a constant currency dollar basis for the export, and the actual growth is coming to a part of 30%.

24:26 And the delta is driven because of the currency exchange benefit. And we actually... Our international business growth is driven by both BSP as well as MANKIND, supported by strong performance in branded specialty products and new US launches. So BSP grew by 34%, while MANKIND US and other international market grew by 2.93 million% respectively. So we expect double digit growth in international market international partners in the financial year twenty seventh. Okay. And, generally, if if in, you know, earlier just one to two years before US was something a bigger contributor to the overall export market, you know, we had reached around 70 to 75%.

25:14 We still hold it or your other branded markets are also equally contributing right now? So I think The US market and other branded markets are almost more or less equal now. Okay. We expect going forward the other emerging markets to take over The US market in terms of the contribution. Okay. And my next question is related to the margin. You know, this quarter, we have achieved on the higher end of the guidance that is around 27%. If you can split that, you know, whether this expansion we are seeing mainly because of your higher ramp up in the BSV segment, you know, where the margin was around 28%. There, we are seeing a big expansion in your operating margin, or it is your base portfolio that is the MANKIND portfolio.

26:06 So it's a mixed bag of both the things, and we highlighted in our earlier calls also that VSP margin is approximating to the to the overall company margins. So it's the overall growth which has been driving this. And as we highlighted, that point seven is coming because of operating leverage in this number because of the higher sales growth. So, actually, you have to account for a higher domestic growth. That is a high gross margin business and is also increasing. So that is leading to that kind of margin drop down. So is it fair to assume that, you know, every year because of a good operating leverage and operating efficiency, you know, coming up, at least we should aim at 100 business point expansion.

26:57 Fundamentally that 27% to 28% is the peak level that we can achieve? So fundamentally and, initially, what you were saying is correct, Rashmi, and we will come up with a reliable guidance when when we will come up for FY twenty's twenty eight data point. Okay. But definitely, it's operating leverage should play a positive role in increasing the margins. Sir. Thank you so much. That clearly helps. Thank you. Our next question is from Leha Manpuria. Kindly introduce yourself, and go ahead with your question, please. Yeah. Thank you for taking my question. This is Neha from Bank of America. Two questions from my side. First, on the India business.

27:44 First, I think in the... After the underperformance for the last few quarters, we had mentioned that it is our aspiration to grow higher than the industry. Obviously, we have gotten there this quarter. Now if you were to think about the India domestic, you know, the RX growth for MANKIND more near term, slightly more longer term. Do you think we should be... You are confident that we should be able to sustain this higher than industry growth, or do you think realistically it will still be in line with industry growth in the near term before we start out performing more sustainably? Thank you for the question. Look at the legacy of MANKIND. We've always beaten in the past with good number of years, not one year for many decades. IPM by 1.3 to 1.4.

28:30 Just look at the history and draw some kind of a conclusion. You've always said that we are in the process of making our foundation stronger, and we have done so. So when what you say comes true, you feel very happy and very, very excited now. Next phase of pandemic would be. And as mister Asgos told you, we'll keep informing you what we expect in future, but we always believe that we should say less and do more. That's sort of the... That... That's the philosophy of MANKIND, and we want to continue on that. Again, I must tell you one thing that focus has always been in the... We are very... You know, India very well, so focus always domestic growth from where we are drawing maximum growth.

29:23 And in the past, you've said a number of times that we want our product share should increase from 39% to 50%. We stick to that. We want that we'll be outperforming the IPM. Absolutely. And we have some planning for that. We will be doing much better in hospital side, chronic side, and we have identified certain states where we have a ranking which is less than our right ranking. So we are just focusing over there and hope that we come to your expectations. That... That's great, sir. My second question, Ashish, is on the margins.

30:08 I think we have guided to 25 and a half, 26 and a half margins. We are obviously tracking ahead of that. I know, seasonally, this is a strong quarter. But is it fair to assume that there is a possibility of us probably being at the high end of that might... Margin change or probably, you know, probably higher than that? And, also, how do I think about, you know, given that you have a 70% stake in sell, the r and d spend there, would that also now start flowing through our p and l? No. No. Absolutely right, Neha. So as far as the margin guidance is concerned, so we would like to maintain the same guidance, 25.5 to 26.5. And as far as the the r and d guidance, so guidance was given 28, 2.8% to three percent of the revenue.

31:00 For this fiscal, we expect the r and d guidance to... The r and d spend to be upper end of the guidance, which will be close to 3% of the revenue with accounting for the impact of ACTX in the RFP. And, sir, how should we think about the... I I know you have an analyst meet tomorrow, but in terms of the spend that ACTX needs, you know, yeah, the funding that we put, you know, how long do you think that can sustain before it needs, you know, more capital to progress on the r and d? Just some validation? So so the current commitment, whatever has been done is to the extent of 48,000,000, and this is for this annual date discussion. So this is good up to fiscal year 2028.

31:47 Okay. This is helpful, sir. Thank you so much. Thank you. Ladies and gentlemen, to ask a question, please use the raise and feature available on the dashboard. Next question is from. Kindly introduce yourself and go ahead with the question, please. So thank you so much for the opportunity. My name is from the Earth Capital. So my question goes like this. Can't hear you. Can you hear me?

32:33 Sure. Am I audible now? Better. Thank you. Okay. So my question goes like this, sir. Given the Supreme Court judgment, the Supreme Court mandated committee on the marketing practices and the 01/29/2027 herein, So how is the company strengthening its marketing compliance framework and governance? I mean, what... How do you see the regulatory direction for the industry altogether? That's my question one. Thank you,. So I think this whole UCPMP guideline is not something which has come to light right now. This has been there since three to four years. However, this has been voluntary in nature, and also there is some sort of statute, which is there from the Department of Pharmaceuticals.

33:24 But now with this also Greenport ruling, the government wants it to have more statutory powers. However, if I talk about from MANKIND's perspective, we have been preparing for it, not just in the last three, four years, but since the last seven to eight years. And we are all geared up. And I think from... Even if whatever the committee recommends, whatever guidelines they come up with, we are fully geared up to comply. I understand, sir. Sir, on the second thing, on the tax litigation front or the annual report review of 2026, wherein 1,609 crore of disallowance under section thirty seven one. So if that holds up, how do you see the entry... The tax class interest going there and the contingency liability that we have created for?

34:16 K. So so thanks,, for the question. As far as the the the the tax demand is concerned, so so we are pleased to inform you that we we have received a favorable order from from the from the commissioner of a piece. So wherein they have crashed the four years in the order. Favorable order has been passed. And the overall exposure has been brought down from the old level by by 300 odd crore rupees. And having said that, whatever is there, the the accounting provision as well as the financial or the payout, everything has been accounted for in the books of account. So because of this particular tax litigation, we don't expect anything to change only on the financial metrics or the financial parameters of the company.

35:07 Understand, sir. Thank you so much. Thank you. Before we take the next question, we'd like to remind participants to ask a question, please use the raise and feature available on the dashboard. Next question is from Mankind Bosekar. Kindly introduce yourself and go ahead with the question, please. Hi. My name is Mankind. I am from Remedy Investment Advisors. I was just curious about that. We have seen quite a weaker monsoon in many parts of country this year. So has this impacted any negatively? Yeah. Hi, Mankind. We have seen our growth trend in last quarter. It has not been based on anti infective, if you see. So seasonality in the monsoon affects more or less anti infective and active part, but our business has been dominated. Our growth has been dominated by chronic part mostly.

36:00 And to some extent, gastro and multivitamins, so which is not dependent on season. So there has been some impact, but it's not too much because our contribution to chronic, semi chronic portfolio in terms of growth was much higher. Okay. Thank you. Thank you. Next question is from Rahul Giovanni. Please introduce yourself and go ahead with the question, please. Hi, sir. Thanks for taking my question. This is Rahul Giovanni from IFL. Sir, on the India Rx business, obviously, this quarter's growth was partly aided by the lower base of last year. So India Rx grew 16% for us, and last year, same quarter, the business had grown 5%.

36:46 So if I look at on a two year CAGR basis, our India Rx growth is still around 11%, which is slightly below industry growth given that IPM is now growing at around 12, 13%. So where do you think we are still lacking versus market? It is... Is it largely the acute business, which is, let's say, still growing slower for us, which is leading to our growth being below industry? That was very good question, but let me explain you that if you just look at last year, this quarter was having the highest hits. But even then, I'd say that, yes, whatever you are saying is right. But looking at growth of MANKIND, it's 15 some percent is the growth this quarter.

37:35 And this is not the end of the growth. We see that going forward, we'll be doing better. That's kind of a confidence we carry in our head. Because whatever corrections were supposed to happen, they have happened. We are in the past. Going forward, quarter after quarter, and year after year, you see the, new mankind, better mankind, the same kind of a mankind which used to perform a few years back. That's kind of what we're carrying our head now. And continuously, if you just look at our volume wise growth, just look at this quarter two twenty six, our volume growth. That basically is the right metrics.

38:20 Our glucose minus point 5%. Quarter three, last year, it was 1.5%. Quarter four, last year, was 2%. This year, first quarter, the volume growth is 1.7%. Quarter two, our volume growth is 6.2%. And apart from this, just look at the performance of new products. When you just... How we basically see Huddl performance on two, fronts. One, what is the PCPR productivity? What is the growth? What is jump in the sales? And the most important, the volume growth, the launches of new products. So that basically talks about that fundamentally company is doing better.

39:08 I mean, this is how we basically operate. And on all fronts, we are seeing consistently we are improving and hope that will keep surprising the market in future. Sure, sir. So so let's say on a sustainable basis over the medium term, do you think that our India portfolio can clock this consistent 11 to 12% kind of a growth trajectory? We feel that we will outperform IBM, IQVIA, whatever is that. In the pharma market, we'll definitely outperform that. And any So like, that here? In terms of the corrective action, if you see, there's a huge, you know, improvement in the, you know, leadership and the field force. The team has stabilized.

39:55 There was some small disruption in the last six, eight quarters. So those have stabilized in the last three, four quarters, and you started seeing some improvement with Rajivji highlighted that the volume kept on improving. And this momentum has picked up both in chronic as well as acute. That's why we are able to see broad based growth, and that's why we're able to now outperform IPM, which we believe that we'll continue to do so for the foreseeable period. Sure, Prakash. Are we giving out any quantitative number in terms of the outperformance which we are targeting versus the IPM? In the past, our outperformance had been 1.2 x versus the IPM. I think, Rahul, two points I want to mention. One is we are still... This quarter also, we have been outperforming the market. And, traditionally, what even Harish has told that we had been 1.3, 1.4 times earlier.

40:51 But this is a phase where even there's... There is some unpredictability in terms of IPM growth also. So if you see today, we cannot say that what kind of growth of IPM will be there for next two, three quarters. So... But in terms of outperforming the market, it would be around 1.2 or 1.1 to 1.2, which we can see next, you know, two quarters. But in addition to that, I I think one point is to be added here because quarter two, when you are talking about our last year, the basic key metrics is, right, like, you know, cardio, diabetes, or even for that matter, vitamins and gastro. Our MANKIND performance was still more than the market even in quarter two last year. So comparing that, we are still doing better in those key metrics for our success.

41:38 Sure, sir. And just on the the the chronic side, can you talk about your GLP one strategy? Because, obviously, there, we we were trailing competition in terms of market share. So what's your thought process in terms of scaling up on the the the semaglutide opportunity in India? Although we mentioned the past as well that we said that let the competition... Competitors become a bit common and sensible, and we'll start working on it. And the working has been started. We are entering this market very strategically. We launched one in cardio labrador, one in kinetics. And going forward, you'll see the response. Sure, sir. That's it from my side. I will join back the queue. Thank you.

42:27 Thank you. We have a follow-up question from. Please introduce yourself and go ahead with the question, please. Hello. This is from. Thank you for the opportunity. So I I wanted to understand a little bit on the fee for productivity. We approximately have 63 brands now, correct, that give over 500,000,000 of sales 54 in FY twenty six. So I was looking more towards, you know, how much of this is coming from scaling exist... How much of the growth is coming from scaling existing versus addition of new brands? And is the sales productivity per MR improving, or is the growth coming more from higher selling costs?

43:24 So if you see the the bigger brands get bigger, especially in the product side, and the idea for the company is always to bring it more 50,100 programs because that's what drives growth. At the same time, if you see, we've been talking about, you know, addition and introduction of new divisions. For that, we need to hire more people. It's an ongoing process. It's a mix of both older brands and scaling of newer brands. If you see our field force productivity, last year was around seven lakhs, and quarter two ending trailing twelve months is about 7.4. So despite hiring more people, even the growth, we've been able to improve our MR. Okay.

44:09 Thank you. And on the chronic mix versus... So so, you know, we are seeing sustained growth in chronic space, but the chronic share remains below the IPM. Right? So what is the realistic feeling for us for the chronic mix over the next one year, and would reaching it improve margins for us as well? So,, q two base actually is always higher. That's why is looking 37. Last year, we closed around thirty and eight and a half, 39. So our goal and ambition is to add 100 to 200 basis points every year, and about four to five year ambition is to touch 50%.

45:03 Okay. Thank you. Thank you. Next question is from. Please introduce yourself and go ahead with the question, please. Yes. Thank you. This is from JPMorgan. My first question is on BSB. Sir, you highlighted a very strong growth for some of our brands. If you can help us understand what has driven this strong growth. And I recall that some of these brands, you know, especially like anti d, for instance, had very low penetration levels in India. So, you know, over the last few quarters, you know, yeah, I'm sure, you know, you'd have taken measures to improve access, penetration. So we can throw some color on that side as well as to where we are and what is the potential of growth for some of the key brands that you mentioned.

45:52 So thanks, Manzi. Growth for the Mandiant brand has always been strong for the last two quarters. Of course, the 20, 25%, and some of these top three brands we spoke has been 13 to 40%. And this is being driven by many initiatives. What is the demand creation, especially for, you know, innovative product like NID where you have to have lot of, you know, awareness programs that we've been driving. Secondly, we also increased the dynamic coverage over the last eighteen, twenty four months from 33,000 to now 37,000. And, also, we've been expanding our IVF coverage, especially into, you know, the IVF clinics like Indira and the chains. And also, what is different about BSP portfolio is lot of clinical work is getting done for their key brands, especially anti d, polygraphs, and even histogram, which is a, you know, recently introduced product in the PFS space.

46:53 So there's a lot of clinical work which gets done. We have lot of doctor involvement is there, and lot of awareness programs are there. So those things are leading to growth in the mandate batch, which is a quarter of 30%. So there is no element of low base here. Right? You know, for the last four, six quarters, we've seen good growth, but we expect this kind of momentum to continue. We hope so. Okay. And then my second question is, you know, while we've done well on an overall basis in India, our export portfolio, this is coming on despite the fact that, you know, our probably still is, you know, lagging behind IBM. And I noticed some of the key brands like are still probably, you know, either declining or, you know, growing at a very low pace. So if you can comment if the primary numbers are also suggesting the same, and if not, you know, what are the, you know, measures that we are taking to revise growth in the anti infective segment?

47:54 So, Mankind, when you're talking about, you know, anti infective, we can see there is a progressive trend from quarter to quarter starting from last year, say, '3 to quarter four to quarter one and quarter two this year. There has been a progressive trend for all antibiotics, including Moxie, CV, safer kind, good service. In fact, good service is even doing better than the market also in this quarter. So there are a lot of antibiotics which are coming into trends. And considering the strategic part, what we're is that we are rebuilding our mass specialties, especially when we talk about antibiotic, the impact comes from our specialties more for MANKIND. And we have been rebuilding this specialty for antibiotics. Simon, we're also building consultant backups for these antibiotics, say, surgeons, and even for the matter ENT also.

48:42 And also in the antibiotic space, we are launching, and we have launched also some of the good antibiotics, which are giving a very good result. Alright. So shall we expect even this segment to come at par compared to IPM or, you know, in fact, even go beyond that in terms of growth? So in coming coming quarters, probably it will match the IPM growth in and probably, yes, of course, we are looking to, you know, do better than the IPM when the contribution from new products also will come into. Alright. Thank you. Thank you. Next question is from Rashmi Shetty. Please introduce yourself and go ahead with the question, please.

49:30 Yeah. Thanks for the opportunity again. Just on the consumer business, know, if you can explain what is the impact that we are seeing in East and South, and what should we expect for the full year? Are we sticking to the guidance of high single digit to low double digit growth for consumer health business? Rashmi, as far as I should really confess you that we are unhappy with our own performance in consumer business. Very frankly, I'm talking to you. Very, very honestly, I'm talking to you. And the the kind of transforming changes we brought a few years back in mankind, the same kind of changes you'll see next few months in consumer side. Having said this, some positive positive side consumer is that we have taken better share in MANKIND.

50:24 Have share has increased, number one. Number second, basically, what? Our e commerce is growing very fast, 100% growth. At least two page, it's now contributing around 15% in the total sales. So trust is more towards ecommerce. But, yes, we are not happy. And we hope that the next three months or six months, and next year especially, this will come on right track. Right now, this year, we expect that growth will be in single digit. That would be high single digit, or it would be low single digit? I don't mean. Okay. High single digit. Okay.

51:10 But we should expect that, you know, it should recover back in the... In f I twenty eight. Right? Absolutely. 100%. Okay. And, sir, this ecommerce segment, whatever sales we do, that becomes the part of the consumer business segment, or it is a part of domestic portfolio that is your Rx portfolio? Mainly consumer. Consumer. Basic consumer. Peter, I'm just seeing your question. What question you asked about consumers. Right? I'm just replying to that question only. And I said that consumer business, quick commerce, ecommerce is doing fantastic. And if right now, growth is 100%, we expect and hoping that it can increase further.

51:59 Okay. Yeah. Thank you. Thank you. Next question is from. Kindly introduce yourself and go ahead with the question, please. Umesh, kindly unmute your connection. Can we go to the next Hello? Question number. Yes, Umesh. We can hear you. Yeah. Hi. So my first question is that earlier, we were almost 10% under indexed for APM versus now we are 8%. So which factors have narrowed this gap down? And also on the hospital presence, we are increasing our hospital presence. So is it more centered again towards tier one and metros or it's on a broad based level?

52:50 We under index to metros? To IPM? Yeah. Yep. Which is for an under indexing to metros and tier one. Yeah. So so we will over indexing tier two, tier 63, and we will be Sorry to interrupt, sir. Your audio is coming from a distant. Yeah. Am I audible now? Yes. Please go ahead. Okay. No. So if I understood the question correctly, it's about over index in the tier two to tier six cities versus under index in metro and tier one. Is that right? Yeah. And our hospital expansion strategy is catered towards tier one and metros, or it is on the broad base? So hospital strategy is clearly not based, but hospital in general are going rapidly in these metros tier one or tier two cities.

53:39 And since we started, you know, from small towns and then progressed from tier two... Tier six cities and now to metro and tier one also, so the... What indexing is there, but at the same time, we are growing recently where is that? Metros and tier one cities also. So it's overall broad based growth across banks. Okay. Got it. And, sir, secondly, on the MR edition guidance or or anything... Any guidance for FY 2829 from the present levels? So for 2829, we will get back next year. This year, we have said about 7% increase. We are on track. Focus. That's it. Thank you. Thank you. Next question is from.

54:27 Please introduce yourself and go ahead with the question, please. Hi. Thank you for the opportunity. This is from Credit Equities. I have another question on OTC more or less in continuation with the previous participant. See, growth has been sluggish for the company for almost four years now in OTC. But more importantly, we have not seen any major new brand breaking out of the OTC segment for quite some time now. Now, Rajuji, with the transformative changes you spoke about, can we expect more larger new brands coming out from this segment over the next few years? Was it given... Correct. You see the growth of last couple of years is beauty, No one that's not there.

55:13 The category is much better than what you're mentioning right now. It's double digit plus, number one. Number seven, basically, is what? If you just look at the of consumer health care, get so fast is one, correct, which is really doing very good. Because you're supposed to understand the dynamics of consumer business. The success rate in consumer business when you launch a new product is in single digit. That means what? More than 90% products when you launch new get filled. So what's generally we have adopted that when we see some product becomes OTX in our prescription side, we try to move it to and give it to consumer business. Look at the example of our health token. This is one example. Is another example. In the same way, we have some correction of our mind, which we feel that in future will be shifted to consumer side. But before that, we just want to build, I mean, very, very robust leadership team in next couple of months because everything revolves around people actually. If you like leaders, things start happening. So what is happening in new age business, you want to come in that line as well.

56:23 So just to give data, we spent 25% last year before. Yeah. Got your point, sir, as well as Prakash. Hopefully, we'll we'll see a much better performance going forward as far as OTC is concerned. The other question was on international. You spoke about emerging markets doing well, and the contribution from emerging will grow henceforth as well, and maybe US will come down. So just wanted to understand which are the key markets that are doing well for the company and also your approach. So do you have your own MRs in these markets, or these are largely through the partnership group?

57:10 Well, thanks a lot... Anumdar for that question. So when we said about international, that ROW emerging market that includes DSP contributions. So as you know, DSP is more of an emerging market that is specialty play, which is spread across all key clusters. The first one is the ASEAN cluster, which will be to the larger market. Second is the MENA cluster. Third is the RCIS, and fourth is the LatAm cluster. So across these markets, our idea is to increase penetration of the existing products, also increase growth from the existing products and reach some newer markets. Got it. And final one, with your permission on ACTX, see, what is the game plan here post FY '28 once the funding runs out? Are you keen to invest further to pursue the r and d programs, or do you prefer a partnership approach or maybe a combination of both?

58:13 I think,, we are open to all sorts of ideas. By the time we reach FY '28 and if we have good results coming out of the clinical trials that we'll embark upon, I think we are open in terms of partnerships or maybe ourselves funding the programs. Depends, you know, how the results come up. And when are those expected as well? We expect over the next two years. Two years. Okay. That's it from my side. Thank you. Thank you. I now hand the conference over to management for closing comments. Over to you. Yeah. Thanks, buddy. For any further queries or clarifications, please reach out to us on [email protected].

58:58 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.