Dr. Reddy's Laboratories Limited (RDY) 27 Jul 212021 Q1 Earnings call transcript

Ladies and gentlemen, good day and welcome to Dr. Reddy's Laboratories Limited Q1 FY 2022 Earnings Conference Call.

As a reminder, all participants' lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions]. Please note that this conference is being recorded. conference Mr. the hand now over to I Amit Agarwal. sir. you over you and to Thank

analysis available today Reddy's good Thank quarter thank you us of you. Mr. our of company's ended you we call the morning joining be written Israeli, Parag press good Mr. Earlier A very June Relations Erez outlook website. the of soon. have a discuss and XX or material To and released being recorded is evening Please IFRS of during today's the based our on be have that for conference earnings media team Reddy's or call same transcript we call this Investor be and our the website outlet financial are to CEO; the This attributed statements. consolidated XXXX. all copyrighted for playback on note and also expressed for discussions the rebroadcasted Dr. will call business and and Agarwal, consent. day, the results the cannot posted All comprising: performance is shall Dr. made Reddy's on the in the CFO; and our team. leadership our without the Dr. and and

call, Before this to pertains remind everyone I conference contained like would press call. the proceed also release that in with to I the today's Safe Harbor

Over to Now, I sir. Agarwal. call hand you Parag the Mr. over to

growth one and XXXX. sales. keeping our to is through Amit of you, everyone. take hope pleased safe quarter of another are quarter It for Thank to I'm families fiscal the double-digit yet results I well. in and you greetings and your you

for towards and price due in the impacted sustainable US of promotions, company. growth critical these to digitalization. R&D, were brand in the investments increase erosion are believe profits long-term However, higher and We investments

key more detail. for in financial me through the Let highlights quarter you the take a bit

rate reduction higher translation product a a this quarter at million is and launches rate into points acquired quarter by is stood basis FY are products The volumes, XXXX. including year-on-year sequential full on points of as Europe. new US INRX,XXX offset basis. the by Consolidated and basis dollars a profit and COVID XXth, with from is section on mainly a quarter of the our products, XX.X%, convenience price this some translated that of all in the for was amounts XX% June year-on-year $XXX business in XXX quarter INRXX.XX, portfolio erosion impact mainly by margin crores partly For growth of at which driven revenue has X% grew and XXXX, QX XXX of for basis US in gross and Wockhardt been Consolidated quarter-on-quarter.

XX.X%. product crores benefit that at annual INRX,XXX favorable in and and in $XXX quarter-on-quarter. mix. of markets, year-on-year in X% XXXX and higher increase generics is brands is and X.X% high gross gross in impacted quarter due increase million in is The XX% is in the sales. our after the and and investments emerging on the of integration The investments including the was digitalization, investments EBITDA at and INRX,XXX for The also India with for portfolio. XX.X% increase The quarter. an Wockhardt margin quarter-on-quarter to $XX R&D. is spend spend the and for increased million million, that The that account line INRXXX SG&A respectively full the was quarter acquired is year-on-year and in is EBITDA sales the spend quarter for of increase The biosimilars increments. quarter higher incremental margin increase in $XXX is to margin by were generics FY export due impact higher of provisions and development and marketing crores and to in lower XX.X% margin inventory current is crores is Given gross the The global the Gross molecules. business expenses development in of a due XX% pipeline for R&D few erosion, of were US primarily and for products. in COVID-related impacted XX% EBITDA to and PSAI margins R&D were due quarter year-on-year margins price and

for Hatchtech Effective in adjusted as million INRXXX year FY an are favor for crores led for improve statements was which for In us, filed US$XX.XX June a arbitration the charge million, XX% to our in event. the tax which full US$XX.XX for Consequently, award incremental in at XX-F received to and year-on-year and US$XXX which adjusting the quarters. million, been XXXX, XX.X%. a of stood financial tax that before quarter margin XXXX coming EBITDA for profit is Xeglyze QX has decline Form that XX% increase the We subsequent we IFRS of rate would of confident our pertaining final quarter-on-quarter. is an in of at product

Profit that to receivables. We Reported the expect US$XX our March discontinuance and mainly after of a in on is primarily the in normal by ETR increase quarter million. to XX, EPS in the capital crores program for which stood US$XXX inventory US. planned in Operating for was against INRX,XXX XX%. is discounting tax driven is at XXXX range receivable million, INRXX.XX. increased quarter Increase receivables the of on be of XX% account that working INRXXX crores by

INRXXX is net INRXXX surplus in outflow XXXX. on capital due of cash working to XX, now million. at Consequently, capital. that mainly crores, Our increase a as US$X crores quarter is a crores have this flow million US$XX INRXX stood free during operating which is The we cash investment US$XX net million during generated which was the June of quarter

million Erez rate to and AUDX XXX the largely of INRX.XXXX to are take form to the dollar dollar range rand million this INRXX.XX the around of African at dollar, rate derivatives INRX.XX through of the US$XXX request currency the RUBX,XXX million rate now Foreign ruble, the next With flow to INRXX.X at maturing the months. the the of business at hedges key for cash highlights. South approximately XX in I hedged to US rand INRXX.X the to in of South African Australian million

I your Good to morning are safe everyone. these loved ones you and and good and keeping times. hope evening healthy in testing

our pleased second many the businesses serving and business patients key to hit continuity India of the including While our our markets relentless we continued of during by health, employees our this the of and cannot by partners. have quarter. that operations were wait of deliver COVID good and severely with ensuring purpose wave our of I'm efforts

launches, the good market We molecules on of into products This for strategy base inroad in face and and provide and insurance This in addressing our markets all one is product of supported products, quarter in our making in platform as pressure Europe, we roof. demonstration high-quality an by needs price SVAAS execution is with of momentum both our beyond as new by next business coming momentum, to model as well driving productivity gaining service managed expand development to patient old the delivery and continuing make by quarters and integrated recent India. in us US the we pharmacies successfully innovation expecting laboratories OPD in of in innovation while gain continued digital unusual agenda. for doctors, erosion pipelines a healthcare scale-up the decline growth new accelerating API market the through innovation sets launch have key simple share Today, an new and continue through and biosimilars, the launch our will app-based share. field under enhancing our launch in both sales, is small that

that reference are Please the respective in to take me our towards the this in let highlights you of currencies. all key local Now business section the numbers business. note

of quarter and Injections, recorded Our year-over-year four $XXX Ertapenem North US, capsules, of X% Icosapent million Sapropterin sachets including a in the decline tablets launch for Famotidine quarter XXX America and milligrams X%. and of Generics tablets. sequential our We of business Albendazole with the Ethyl relaunch products a growth sales

this in launched We in also period. products two Canada

high progressive our normalized products due contribution low end from witnessed retail This tender OTC for new quarter and offset infection COVID Rx to in price existing of the products impact erosion and continued for sales and of which relatively health US. and system due market in business. This competition an gain and lower by rates procedures in elective to increased intensity base products, business was share of number

sales were flat recorded of launches. driven sequential million business quarter a Europe of basis. on Our largely sales growth a new year-over-year by X% The €XX product with

During we launched the in products Germany the UK. and two products new four in quarter,

will for and next continue driver We portfolio Portugal, that market with the Slovakia be have presence this good in few market. a launches Europe believe years dual Netherlands, in to countries Europe the expanded and Czech for with of Republic new strategy We the us expansion. azacitidine four injection in our of cost to namely

emerging of X%. year-on-year Our business sequential of growth INRXXX markets recorded crores with of sales XX% and a quarter growth the

declined Within a a the quarter-to-quarter by XX% Russia and market, emerging by currency. grew basis in the XX% year-over-year on business basis on constant

many markets China and focused business well. performed other Our in Brazil like

During across products the quarter, we launched market. new XX

and XX% crores Our good year-over-year of both low strong growth base was effect COVID supported growth Year-to-year last strong as with growth of INR of of positively to growth a portfolio reported and performance fiscal. India was sales QX This as of base XX%. the well X,XXX business. business by also benefited sequential

the drug we Curhealth, XDG new report in June vaccine. quarter the product, of in -- During and treatment the launched products Indian Sputnik-V markets per XXXX. six nutrition COVID including as of

was by progress. is growth XX.X% We the XX.X%. commercial have MAT Sputnik-V, basis up market than faster On the on scale in

ramping with are We supplies. working up for RDIF

India with also are six closely readiness. working in manufacturing for CMOs We

similar across supply able been across towns and XX infrastructure go-to-market have to patients India. manner a product cities create with and and the robust in system health to We

in recommendation also a trial Sputnik X Russia would working We from are Phase of dose a for SEC. approval further We on India. Light, leverage single

a year of due recorded for sales quarter-on-quarter of mitigate our last during business, business in and this the we X%. in XX% the million $XXX This owing decline higher Considering quarter sales to nature order. due year-over-year with potential same customers to largely fluctuations of COVID-related sequential decline PSAI of quarter by base sales stocking was lumping business Our a in as expect to activity disruptions. some response to

introducing we vaccine. our improve additional and clinical development biosimilar On with the trials to our X pipeline Sputnik-V R&D pipeline the in why Phase products strengthen continue make of we settled progress front, of to continue

and also for markets all this in molecule approach focused our assets. for with cycle of strengthened assertive have We our improving our value execution small and proportion

we files master made drug files in quarter, XX US. the filed the including During globally, two

including across We NDAs ANDAs, formulation filed two have States. products also United global XX markets in

In NDAs. XX we our proprietary XXXX, for which ANDAs with filing have the cumulative for three registration with of of XX, we XX pending CTCL USFDA well indication. approval includes progress June pivotal XXX(b)(X) business, and to product trial EXXXX As continue type the for

the milligram. development modified of minocycline is quarter capsules that the DFD-XX During rights we commercialization release program XX out-licensed

Additionally, underway globally are on key efforts and to assets. all market monetize market approved

global profit cautious sales the intensity are believe competitive a in in and are levers this owning of by design. healthy ahead and we there like strategy quarters to would over of sustainable on We answers. us While basis uncertain to pandemic that for open our questions and I and future. the increase deliver and floor business With several to the coming committed continuing environment the remain

The the go of Sonam Choice Instructions] from Please [Operator Institutional Parikh ahead. Broking. question [ph] line from first is

Hello. Am I audible?

Yes.

Yes Go madam. ahead.

Yes.

business the outlook with competition. on to the of So America this intense know price price North just erosion wanted

wanted going margin? So be forward know the at how what drivers look I And to you would EBITDA second, it? for do like

Yes.

as US a our the us the for quarter this So we We third got price downside as what unusual the faced primarily was defending we a of -- some call erosion products. share. bit

launched big we are as launch products. example come days as a icosapent times to in quarter. few of last this the quarters other naturally is potential later important in we the up very him coming the of will our While see like the products for which launches well which that And realizations

for us. timing-wise So first all a of unusual I was it bit think

America And in EBITDA, so bit the numbers to grow respect always our to XXXX and as to in And we are the expecting come a as it's well the we this so, to North we also were come. are year that committed this as different. obviously, still very quarters famous saying to

activities on when this it So specifically, this the well order like of impacting combination the that other EBITDA And quarter, of normally less on COVID basis. -- as concerned less from was is that APIs long-term US not I'm the also as quarter-to-quarter have fluctuating a because EBITDA. as book on as and that, API well you the a

How can on the on erosion. just North do see Okay. color side America price you And throw you some it? the

launched in it ago, lead what that when to to then means product competitor similar a products and need very a in especially and last you're you the be coming to launching months something XX to is used It's defend erosion. share price recently we that years your the

not unusual situation. will future. naturally also in to it's So, be this continue And the

something I country. business a North normal So, unusual that -- in is America. don't cannot I It's this say us in model for

you. Thank in Okay. will I the get back queue.

The next Financial the question is line Services. Thanks. from ahead. Manudhane Oswal Please Tushar from go of Motilal

person? the the professionals like related would in of as to understand the I just aspects anonymous issued of to healthcare involved for Sir by by on opportunity. the number just Thanks per the the terms complaint supplement US.

in their new as time. submit this we the start that's last we It still relevant a it's not done information a to did and takes under of agencies in November it and are and first to So we investigation of the traded on dose investigation, it's thing. US, We process. And reported is like year. this normally need all, what a is

relevant issue an immediate share will respect. the we this investigation Once the processes. I don't authorities and with it in come, will the So, action address

Okay. the sales margin quarters, going while have of been buildup the would the because inventory And gross look PSAI but at this gross secondly just to margin, the previous for how impacted on business forward? for the

of you because less high of also of sales So you nature it have gross level when normally, dancing in the themselves. margins in it the cost, relatively fixed see a API, the

sales in the did up decrease I We go up. So, the will go some once will see specific any some also margins issue. don't price molecules. have

will we molecules other going those less others. the profitability, to on are but hand So launch see on we

less it procurement patterns quarter, will believe will is we overall, of it have much the good to the customers. depends to fluctuate, business, very quarter very this much while relevant So I in continue good on

you. you Thank for questions. taking Thank my

go Thank the Securities you. is from Please line HSBC and of ahead. next Kerai The question from Markets. Damayanti Capital

I'm Hi. Yes. I audible. hope

Yes, Ma'am.

Okay. Thank business. Russia question my you and for the Sir, on is CIS opportunity.

-- sequential I quarter continue CIS. correctly despite both is that if us. we lowest understand we quarter But Russia notable for in I'll fourth the seasonal decline and saw, So say

So decline? in which a something Dr. Russia is bit Reddy's, it can we which regions there? what due something to more you phenomenon are facing Like, sales and to it's talk market-wide little are impacting CIS? And the specific is or

the growing is in are you area, we in We of this give will tenders timing a specifically Russia on biosimilars. we and there the bids --

in are patterns in to normally those So quarters and coming according Russia. specific the of government the buying

business the are for of see sales we whole products if a this meaning certain why these of decline. of these retail, we in of sequential those growing a while that's will timely, well government most more in both of So is actually as kind have the tenders of business. a quarters we as timing But the issue products, the on example,

Okay.

a business how growth way? we expect for the of should normalized in part this So,

like Should markets necessarily it In future. also -- to general, will quarter, we'll emerging year. but happened normal growth see last in in -- trends grow every have in not continue the the the

That's Okay. And in question on my second Sputnik India. is helpful. rollout

in distributing So, confident doses by XXXX depending might XX the FY months many which in the rollout XX you are got end vaccines -- say how India? about have clarification of COVID you like to of CMOs, on months? from next the Or

would sufficient October, of be in we market to see coming will September we Sputnik out have we speed but the and for [Audio we We we that India. also the We between somewhere Indian it will quantities and see that Gap] able November if respect. have will and hope for products

a depends the also cetera. other we this -- this in course, by sufficient happen terms Of what on have [Audio line be But will will India's Gap]. once et vaccinations of should

Okay, sir.

for I’ll you Thank Okay. the back in answers. your queue. get

Axis line Thank Capital. Prakash you. of from next the is from go ahead. question Please The

stabilized good not to we and for seen business you last XX% I quarter. this least this mean volatility PSAI. we trying evening, this gross And Sir, margins the mean, year. then Hi, clear, was opportunity. plus mentioned for for at I about thanks coming again, but the understand had a Yes. voice and saw

quarter do and why you mentioned the how DMF the given origin. affected you So do see volume year how you rest see heavy understand last investment a spoke quarter mean there's you in the pricing. I But that about the a it's about of I are think after you in and was year CRO that on and -- starting you sales this decrease do And one-off? a

And So what is what the there? sir? update is outlook the

Yes.

think with agree let's looks it as was positive. is -- key missed future -- quarters to in quarter indeed took going two -- there to it's product The grow. portfolio taking last of in very the that There -- outlook that the especially this and sequence took they part in in quarters less. overall promising. a quarters more pattern what were The which well. that I people We So say happens specifically people and fluctuations, that. I business the the pricing the this in in quarters believe products. the us people certain We because is order some of are few less, last is

rather So I that than long-term. see more issue a of short-term

very much but impact this On small of scale-up in the in stuff, and entire business. we belief on terms relatively the track Right CDMO of growing, are the I'm it's on and much very now, small company.

Is it are say the Prakash, many, patterns those okay? so activity let's of the by impacted are there? the activities API most rather of generic and API So procurements. you of

onwards. time to I will you to you this Or Yes, QX asked take you blip think -- to come normalcy back a normalcy? is onetime on and do Hello? mute. sorry. that from was I

onetime I during will some it this but are don't will in think may FY down, se went we it's going also these of -- sure the quarter-to-quarter. the as you but for projects naturally a year, a XXXX continue. per the fluctuate that said, as if growth see it But API price for from to

onetime, cannot It I positive. is go. So a going say direction the but that it's to is

bridge. on second And sir, EBITDA Great. the question, Okay.

and this last in EBITDA of healthy So EBITDA business, soft US started And margins. soft which margin gross at we year were business resulted PSAI XX%. XX%, quarter margins with the we dropping

think do come by So take take you year would couple XX% it able how would XX%, will I quarters? next mean it mark? a to to your be back when you too? of Or

No, no, -- as next And cannot from Dr. before. to to we what we quarter see it used will know come as from fast. supposed guidance, you you but are to let's Reddy's something similar give see you say

Yes. Yes. I for to that. guidance. drivers just will looking it I'm wanted the not lead

So one the help. big is VASCEPA the launch clearly other are will which What drivers?

first the the be of value this in than More the is products launched full US. realization The will be that fair. quarter. Yes. This will drivers in of missing

is second activities. our of API that The of a some scale-up

-- which the was to line months -- not a impact least, top you but end, growth last are it's significant, well in it -- it COVID-related, And quarter as out going a the in which of some were as was wish more in in more India. see if you this whether in general the more two the are in our of Third, higher realizations items three. not of impacted of we and that company quarter as growth have but some we some and was

it, were well logistics deal have as do and has co-pay. under India we we certain -- in with as of to the We what

help see XXXX am are long And all the Dr. the you'll in KPIs we for still that pressing supposed that for term, that and discussed. always confident the these I'm my valid margins meeting is key of I So to Reddy's. have very

Great and Okay. thanks.

from Thank the is Sriraam you. ICICI The of Rathi from Please, next go ahead. question line Securities.

opportunity. SEC. mean, the for Thanks on issued the by -- Yes. I supplement Sir, firstly

of secondly, it goes wanted what on to that kind can this understand that be you in terms terms So, what what of I stand the something I worst company in mean And have could are I negatively thinking? just of mean, if us? impact outcome of against mean, what

the repeat question? Sriraam. is you line Can not The clear,

this. about Sorry

I'll just repeat.

So issued SEC. my question is regarding by the supplement

in the outcome? is and thoughts I what of terms negative company are be mean, something our could terms the worst outcome what stand that So time, same if what happens of on at in

did U.S. to when firm self-investigations The need as this in have agency a normally, that we outside consult what is well. you U.S. is this the time of we kind as a to of information through you give guidance processes we the complaint going the in investigating the as the this traded by and and are our have that our market, investigations, the per So, the this submit in outcome investigation.

relevant for can don't any with The And do. We we it. stage, more, is the to needs this year, action think, I certain take that are I -- for to or time, do. are I nothing or can submitting then same it's we activity the assess. things any it a discussing potential be the don't to be maybe to authorities. early know. need outcome company that At envision The maybe going immediate probably immediate process too

Okay.

Got it. the And Okay. margins. it. one question gross secondly, on Got

also. much that was been? think some Is inventory it it in I share there initial how adjustment that to was comment So could have possible the mentioned impact

numbers, Sriraam, is think share every Inventory inventory some typically but the quarter. I can hit, there provision that happens don't we

normal and next saw in quarters. we in to do our quarter a quality higher it the because couple little industry, This is inventory, expect of slow-moving which issues we certain normalize of

okay. Okay,

average? an generally we margin, future to of be for in the a to gross is XX% on that so fair to quarters number like the look range also, used at So XX%

number. like to give I would not any

of of if a a the this gross provision. America because primarily is bit. end for been has price slightly lower as saw quite higher and look data in the margin of in inventory quarters, North our that's at As that erosion we the at clear range. because our also well, several that And last know, that you quarter gross very margin It our you know you fluctuates

number are in of there impact the forward, Going Like full the launches levers America up. it said, that is would it gross should a improve of North the recent margin. push of some

As sales, leverage. At have slightly, will that for Also, the lever us we while in will bring is that commodity as in which gross prices. market, solvent down branded impact same we give PSAI positively. the time, a the there improves, which margin grow is it that the growing better been business and a increase the will

that overall, margin going gross So, expect put more a today. the which are are to think levers can are But I we on an range compared don't upside gross I pressure to we where give margin. to

Okay.

It's say the fair we we neighborhood in to where that of will stay are.

a the in be previous we if recall no, margin. a will a and great at that will if XX% come, will business for because hypothetical, EBITDA, come you but meetings, great billion will business example, not $X say If there the of

we it's of that So, what to working I yes, to think but -- it. should terms EBITDA. And the guide in say us expectations, fair is are improve naturally

is got it, it. side. Thank from Okay. my Got Sure. That you.

Thank you. question is Nithya Please from Bernstein. from ahead. go The the of line Balasubramanian next

you. Thank Yes.

So Sputnik a V. question on

So, about so you that the of vaccinate this challenges challenge? people? Is able we the have as on the to been up are second to to has the understand scale-up improve when second Or second you visibility dose, remain do a doses is is this well. imported of more the likely scale that fewer been likely in far that vector. with challenges one reading And we -- recently in have the the

their is approvals that a our discussions this pandemic are have that In there of second the as when is to as were in as Sputnik as future. Russia the that mitigations solutions wave hope -- we the they two continue. real The I get them, the past August. First, we confirm well will own supposed India of formula have the as locations the comes Light. call come a is and formula, it, challenge cannot will continue the from we ramp-up will correct. with in of in formula well And what have their considerations. challenges out might and the can size. it's of it the be they main supply the they there This in potential allocation delays that of the we I case because supposed

Got it.

So, from Light of the for sort you DCGI for any Sputnik is in to there requirement study any India? conduct

that they of for will come once are they And the to ask the at review these come will maybe planning out of more. Russia. accept will that submit They the out may this But trials, data, Russia. data results we stage, will

Got on that is India because marketing your in you SG&A one, pushing cetera. your mentioned spend One some Okay. higher et you're it. last solutions, -- some now activities, digital

So, to level likely stay? Is normal? now this is this a new

the it's markets, emerging supported and and well India In sales the also yes, profit. but

this return So exact a very is rate It with plus on investment paying and is healthy business. EBITDA. it's growing and for its investment

grow. main businesses are And not US the that, this mitigation like on accurate more to that level us of those giving the is this is that likely than business. So more

continue. So and strategy this the is we’ll within absolutely

I might squeeze it. If in. Got one one last

market? been at the the able the product the Dr. look because about to brand shares, to patient, out-of-pocket this lower market Do in market Vascepa. is share has Amarin's you if challenge gain on Reddy So, They've product how compared the for been as to for actually talking a the retain generic. with expenses you commentary their see

on comment we I did to this can that not On you I cannot much. so that stuff, far those. see challenge tell

so Okay. much. you Thank

Kunal from ahead. Please Emkay line next the Thank you. go Global. of from question The is Dhamesha

my for Hi. taking Thank you question.

forward launches? US targeting new basis, what question target say, where product on launches. first my of And the that of revenue would question. first our this what on can if product That's was be x the going from So from proportion you provide business, the US should the new quarter come an are let's annual are, business proportion we in

Yes.

targeting So, proportion. all, are first a not we of

trying more some are products explore will a of products proportions for add it this will impacted be than and by to very the year, in pipeline new We be potential others. them will then the they big

we last be that what years launching be products let's less. And that are the will some are So, bigger there had of it say, year. will we than,

So whether this primarily we on terms cetera we it in with with are was economies look et mentioned remerging other such. to market many doing looking are US and is it this in presented the management, of And at targeting terms it we et countries portfolio as cetera. return leverage at are discussions another reach investment, I not launch business, across of in the business markets specifically, that the for actually is The shareholders in risk what choice before the we of way right to scale.

year the to this So going gain years composition proportion sorry year it's of products, address be new directly depends the -- and will the make we'll cetera. not but very other that the necessarily than markets much potential. the be higher It the et after, your to on answer, to

is rationale Sure. question Thank discontinuation the receivables factoring? of the second what's behind you. And the

Yes. basically of explain US differentials We is I India. the the -- and can rationale had between that. the narrowing interest

therefore, using. know, arbitrage in India. able was advantage used receivables discounting be lever take to the in a As And higher that interest we much US of were base being you the and the to of

longer differential With arbitrage that. to narrowing of have that no reverse and we therefore, the interest decided the was making rate sense

you. Sure. Okay. Thank

Anubhav of The line next ahead. Suisse. Please the from question Credit is from Aggarwal go

evening. Good guys. Hi,

question one the understand to little better. side. want Just from SG&A just I my

SG&A until seen expense. as now, we crores of increase the So INR XXX sequentially have from an almost March quarter

you guys mentioned costs, three you reasons. guys So report. personnel The

even which the only XX% So crores XXX in personnel cost I to which very cetera. the I of wanted check other able May, out XX% in was much strong from two market impact, some came of not are INR by there. to just so P-S am starting COVID see was to I from of April, ratio, impact understand factors driven quarter COVID a increase. Of can et

in through talk -- So from? Can the of it incremental about take SG&A. quarter, resulting when this higher higher just you marketing this exactly XX% where in balance came you activities me

Sure.

particular, last a combination digital from That's all, was the COVID of in one. this and physical done. India lockdown a have in severe a as well June as did first it as had not of as So we combination cost. costs May impact, quarter lot And we while in

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we are business. our OTC behind investing So

into We strong rural have are also expanding areas, seen we where growth.

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and will -- believe So cholesterol to continue investment invest firmly this is good is we good this we in cholesterol.

Okay.

will was store. Russian for that's second question the in vaccine us et Effectively on December And only Okay, the helpful. up supplies ramp cetera. onwards,

you the with export has progressed contract there happened? have progress further market, with our for So which over Any RDIF.

be any of get to August, stage we export this India. yet. other will for right that we but also the at And as in have related do we And not hope, course, everything now do we So I our markets, come the of will middle come for after is satisfy rights the of we is cannot will to quantity that I priority. will India. also that this confirmation And will got

is agreements the have we yes the But at if it will intent first-off. and compacting. ramp-up, this that be stage, this activities also absolutely that will the are So

you. Okay. Thank

Neha is question line next from Please from the go of ahead. Manpuria The you. Thank JPMorgan.

taking India Thanks question. the is Yes. my question business. first for on My

You just digital. rural into coming areas investing in nutrition talked OTC, about

of you just could how question businesses? on, up we on think a much, we that, have spend the these to And some start color nutrition this? you benefit to do If OTC will seeing businesses, related when like particularly would something and give scale

So, first, financing growth. India its is already

markets. immediately, as are growing we is expanding the it's benefit experience are other see I India. as going profitable the the SG&A India more spread The in investment and The in well in that, we that into will in the checking profit, But in also So in taking to This areas. specific the as we geographic it emerging course a current to the year. that as related line. services are is be normally you know growth financing of its brand second well are new terms profit launches we the as when products the India. brand, activities new as case see of have. And this it is we is

say, that above the of even our average well And part as as -- we I the So I paying mentioning previous our the EBITDA the average in is see investment India discussions. is nicely. actually in off

effective investment these also it said, Like earlier compared year that is would second efficient much it is mass you itself I the many back paying digital breakeven. a typically to And that, have will in of model and marketing the would from media new add to start brands. is for more in earlier leads much which brands, and

that you And -- would understand, to nutrition in in mentioned require of many have we -- do investments. I just launches, terms we of new do new how have the like, we brands wanted brands pipeline new

pipeline context, what planned launch is the have that these in that So we segments? two for

brands that the already actually we bigger are launched. So, brands

Okay.

brands an is them order said, are economies enhance of to there areas launching like. like, to new which up and that in There in we like to presence Parag in And scale create are our certain opportunity area. in OTC scale.

to that part TAs. prevention, we respect wellness, strategy So -- in we moved the now of well And traditional as is also -- of digital another our as our therapy. OTC the are

in So more more footprint that respect. in India will we expand our and

new. will And some be of it

be some from go things it up Overall, of will of in leverage to profit year will that did And year. the of India past. the we

materialize. will to will -- investments and two even it them, it's for pay So take years that those

think terms up for launch. the second, And API market product? And on, our from to supplies for the our you this ramp to when is do of I just partners? the on -- we product, generic fair or a anymore API to do Understood. Vascepa sense supply concern get ability our wanted will in get share

see stage, don't concerned this I At with this.

Okay. a fair market in And when do we think we share, your can to assessment? get

fair is incremental I what know don't fair, option.

the QX few actually you QX, the last I probably in be think product and example, looking results the we in we of for this quarter for see launched the should that days different as product, contribution of the that third in quarter. will

much. Understood. Thank you so

next question from Saion The of ahead. the Mukherjee Nomura. from you. Please is go line Thank

market, As possible is the quantify that business erosion to has it on you've in double sequentially in happened? the US the what's extent seen price digit, the single is base how And digit, that of two the the if can products, terms products picking that think in today OTC up. US three I some throw light? you in about we of concentration some you top also have And color mentioned

is so color our can been on or lower. well? volumes you defend has been volume as there has all volumes of if able So you for a understand price up? market how give I shaped to Have share loss products But some

Yes.

-- start In market of let's share. terms with

First of all growing share. we are market

are we about is So States remember in United the And correctly out of growing -- our XX% product that. in general. of I if top and the

it's -- XX%. is correct the kind about is of a this So story [ph]

of erosion, numbers price not sharing of in this kind value meetings. we are of terms In

I value depends the double happened the grow moving the, For starting the on come and for -- that's is rate quarter us beginning it and products. to in will QX. States let's -- believe was. this of that United impact thing course, we forward these that will these stuff but did of what well. levers quarter, our get I got We as from in products that resemble call In the honey. digits most basis better the on market we did on and how say projects for primarily the the That's stream to deep we in two us share the price why Normally got of said activities not the main we the impact the impact need what But the the overall QX not defend. in of as but it's to these we contract erosion, not

Okay.

you Just that please? right? -- said XX%. you Is five is I mean Can number top that confirm this just

Around number or Yes. this give take.

you secondly pays million India about dosage. think Do you and from Okay. V and we I picked the has I -- environment, it's ask can perspective think given financial in XXX mentioned, a meaningful the mean a Sputnik given you vaccination And financial that do have pricing opportunity? -- a for if contract up

India programs. V. not can many, be it vaccination And all hopefully the are that of things not the be Sputnik India doubt ramp-up coming I a Russia, were country. There it's and can, it as if waves meaningful. will because of for It rapid. out again way to India. supply of will more COVID the out I the think It's for reason opportunity many And that the underway wish terms in pay

are do that in respect. do many, in there that ago. to we eventually for vaccinations remember for Plus antibodies impact So months people we six the going eventually need many factors that are see countries that down. the mean the even And got

in cases again. there a areas. is pickup Even of certain Now

we multiple what to dimensions move to trying And we are doing is scenarios. address are on so

So, with announcements are Sputnik. we working for example, on

V. Sputnik on working are We

other product products. we other is on working are -- in We cases, our have portfolio there multiple

in qualify use in we that them can the to operations the working are Indian India. We case

in can case we be. working will on a are We that the them do exports in that place

are are ramping when we the address will for say need it, work. know don't is enough, how I of we to of cetera infrastructure our product arranging we exactly but to up the So for That's registrations let's et way fall, there a future allow it. us kind us

less important, This it So significant be kind also situation. of a be it expense. it's can supply unpredictable is but especially, opportunity, to than related when can that. And and

R&D spend very how products, can I to about, increase are in biosimilars? wanted as steep expect should there And if finally think move biosimilars. on the general on check months? there just And R&D on to trial respect think particularly should there How we can success which about mentioned, into we are I biosimilar. we because you the And you R&D limited major to in guide about Should ask has this like thought next a any in is spend? XX your a been space. with if Okay. over clinical higher, it going

increasing thoughts mean, on are on this spend So, area? I high-risk what your

in steep, I call are an this R&D of it call cannot can part spend. I spread. starting increasing of it biosimilars. our we increase it And are is and of we year trials increase So

it in is for main sales opportunities And significant increasing overall is the our will markets. this aimed products by be other behind. customers time in for Rituximab. that believe for difference main including of of Asia. year Really financing that four are a especially, markets especially, came the it market prices this And biosimilars we products be think, unlike that I there products the we emerging the I will is [ph] in and in

So is our area And as as part on this the there to, well in States products are hospital the long business which having normally strategy United this with of the countries product. will be States like hospital strategy sold of markets those as I and those model. United finding continue foreign leveraging stand-alone as its as partners for infrastructure

in I this the but So in believe stage it's an be do investment in stage, in this opportunity, to Asia. investment absolutely an continue limited

you. Thank Okay.

Sameer Stanley. is question go next The Baisiwala Morgan of from you. Please line Thank the from ahead.

everyone. you very Thank And much. evening, good

you So in, announced today. my efforts that the launched putting digital we health are having and question first app on the tech that is

about companies Dr. right to advantage or versus in pharmacy what online into a et like this have is it, just venture So you're getting who few Reddy's chain others launched win cetera. their thinking app competitive HealthTech hospital

thoughts your end just on game what's over here? your So

that. to service for first are see Sure. very not important I giving an development is in, It a service that app. a that that you people. Thank OTC is as -- we

case them, delivery, comprise insurer, be in they roof. much going and to are -- wish it's their to the an needs this I if -- that in very like one to happy the meaning I And and to one we manner and which So get and in they that doesn't alternatives do we under And physicians, that will than when it's to under our in roof. under used service an outpatients people The -- to a information get the -- platform, beauty something pharmacies, they care that America. get end-to-end in the India, is buy used collaboration, the it's everything in better exist current have. of that to I deserve, -- we lived cheaper much that provide insured are the it's the think, you that And service just that.

not It countries a service app. are an other in like is service a not absolutely normal we in it's So much India. so outpatient exist

develop it Fair would traditional have end wondering, And synergy enough, mean, and on -- it thanks you does your for this. it just with your this? I what the just with But I'm business? game? core keep your what's or thoughts

We about and to is But I We things as absolutely It here we will going we generics, see aiming be not develop the well. building companies but are this go necessarily will it. way, the launched India. stakeholders on what just the have of ownership different to do are those continue will -- it. evolved into to in a

in ecosystem. making And create a in that think definitely aim advantage. an have care So health to is are the I those ecosystem, players all the will creating our movers first the an competitive have companies

Okay. Excellent, sir.

is answered. X% looking I second is four-week in which second a is share you've The Vascepa. question player say just under I'm that's branded. available IQVIA data market at your and drug a on now is for that still know XX%

So out? why how is And should so it pan the ramp-up slower share market here?

it. taking we then when launch, do people Normally, trying are you are the stock to relevant and

acute in not is brand. sales our the So, accordance to

missed Sorry sir, it. I bit of louder. Speak

working ramp-up according I'm a cube. our to What are sales of the saying, not

see. Oh I

just your manufacturer, lot if October up it clarify clarification the more that. from on just Indian supplies can December, And it. Okay. V. did you September, was for a When Got or would picking you Sputnik a sir be say

In of each has and one to them date. we a September November them of six because, have different

so we very can to September process. and before, hope be again. it may close let’s something but it be we in it was discussions early the but But are it's Some say still August, from delayed Russia, to in still as And be much as will get November. to delayed

this also means the have that of they Sputnik final second may just at I time would Sir, dose dose, the period, we time vaccine. by if India take Okay. to come V. which of got least And on a will one lot

if there you be out in left interior the back back that will you et sense if India, So, out enough anti-vaxers market cetera. the

So, then September, down commercial the you significantly. rationale get the October, just moment come beyond

was also that time, many there. It same is antibodies still places is there's that the agree respect, in we still like, And is have cities a vaccinated so those and I smaller the there? opportunity. need question with especially opportunity looks does in take places we to And did that that. areas first not It that mark. Are the into longevity in still account the

especially, get that like time. people in as of the are vaccine February, are the cetera, the have we're second may example, we And of also up ramping for period after discussing March, also a wave for Sputnik again aiming well. we to of So months certain when brought vaccination something et will as

going months, to was of it be or whether six nine So, within months, period one year whatever time.

viable this expect July still happens with month I that. a potential also in much delay But us Russia that of the that costed may share opportunity. it's we believe a very And needed it's respect. market very May yes, So to in that

today. we the sell Let's any if it say to don't supply today, challenge could see have I that,

sir. you Thank good it, Got luck. Okay. and

you, so Thank much.

would the to comments. last hand like for very Agarwal you, back Thank conference Mr. to take now Amit We'll I much. the have that closing question. to as

you. any Investor for today queries, us please earnings for Relations team. to case further call. all joining of reach you the Thank out In the Thank

safe. and stay you Thank

On Thank you of for Dr. ladies much. us, gentlemen. joining this you, and conference. Reddy's concludes Laboratories, very that behalf Thank

lines. disconnect your now may You