Dr. Reddy's Laboratories Limited (RDY) 28 Oct 202021 Q2 Earnings call transcript

A very good morning and good evening to all of you and thank you for joining us today for the Dr. Reddy's earnings conference call for the quarter ended September 30, 2020. Earlier during the day, we have released our results and the same are also posted on our website. This call is being recorded and the playback and transcripts shall be made available on our website soon. All the discussions and analysis of this call will be based on the IFRS consolidated financial statements. performance we business team the the Dr. of discuss and have outlook, leadership To Mr. comprising: Reddy's our Israeli, Erez Mr. CEO; Chakraborty, Saumen our CFO; Relations Investor team. and the Dr. Please copyrighted call today's of note is that material a in and press company's Reddy's written consent. rebroadcasted be or expressed or outlet without cannot media the attributed

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

Mr. Saumen Now, Chakraborty. to I call hand over you, to the sir. Over

of with strong growth new Greetings our you patients gross significant margins. I'm markets. the Amit. Thank healthy productivity while all unabatedly to margins, sales Healthy promise portfolio, and continued hope all during delivering improvement COVID-XX key profit and our a keeping everyone. benefit resulted healthy. of times. in even which are you, witnessed glad with I safe our on The EBITDA product SG&A, and we that leverage of the challenging momentum across rendering of serving was these current quarter launches,

me in through more bit these a you detail. Let take

of stood from the of market, year business income XXX account integration quarter XXXX. X,XXX business crores INR For launches by revenues amounts million X% previous across products XX%. rate into recognized a at as dollars primarily year-on-year is of of are XX year-on-year same Wockhardt. grew in XX.XX, translation this crores, The rate volume of that September, the out-licensing is for the U.S. convenience rupees the the INR quarter adjusted acquired translated base product for basis. of INR all stood and section, at proprietary which growth Growth and Consolidated new in traction $XXX on at on is a

grew business and India, business by revenues business grew NAG other XX%. by XX%, markets improvement in pickup and grew business XX%; in supported Russia XX%; volume by the Sequentially gradual X%; PSAI XX%; our emerging by by by Europe India grew grew by Our markets. grew

in launches growth Sequentially, product both impact emerging this X% Asia quarter gross for business in from India; in margin profit X% and the acquired and Wockhardt. of has XX.X%. growth in been growth Europe; Consolidated markets. full New XX% saw we quarter and

and crores, the with sales SG&A A and mix, reported and Adjusted income XXX a an trend year, increase. XX.X% primarily declined margin the is activities by declined The generics arising costs with This and is offset decrease acquired business product a incremental by for for sequential increase the quarter-on-quarter. post basis to erosion. partially product rate incentives, million. export from increase quarter. ForEx XX.X% has on has was shown improved INR benefits quarter unlock. PSAI Gross marketing-related post is by attributable global at increased basis for X,XXX improvement X% reducing out-licensing mix. of price carrier been year-on-year. there Sequentially to during due productivity, were points points and adverse basis that XXX Although, increase integration for X% The previous driven year-on-year by availability. the ForEx spent margin in of $XXX it with lower an Freight and unlock cost and

of of quarter concerned, at as The of is an and a far reflects R&D basis XX.X% points SG&A including XX% an is year-on-year quarter-on-quarter. is as of so $XX spend of percentage increase The points improvement year-on-year INR the the increase the and sequentially. projects line However, in product. development productivity XX% that sales XXX R&D basis in million XXX with XX crores COVID-XX for is number spent with

than accessing a EBITDA at year-on-year with is sequential after with accounting for X.X% XX.X%, is is before crores of impairment The certain the XX% X%, the $XXX our our has standard. crores subsidiaries. to requirement for however tax Effective margin XXX of million quarter million. lower of sales. of is the growth the asset deferred is one INR at our on tax decline in that absorbing more tax INR of of a quarter sales, that for quarter and XX.X%. $XXX INR EBITDA products percent an Profit line for due As the was The XX%. XX charge crores recognition of rate of been aspirational at a of target R&D is ETR X,XXX

payables. million, which capital business, to of increased share line increase earlier. in by $XXX which We been the the Operating after full by million. in is INR each XXX $X for and trade XX increase are XX% for offset year the is Reported crores quarter as receivables is of which INR that around crores, tax an inventory, in Profit the XXX be ETR with revenue. growth the XX.X% in stood the the has INR INR There the at expect working alluded the for partially are crores per which is XX.XX. the quarter earnings

five million improved However, in million. INR when capital we days. $XX that towards of number measure working XXX investment capital crores, XXX which is this The quarter quarter. crores, INR during invested by cash We which days generated was free in has this is $XX

INR XX, crores. debt XXXX September net XXX Our as on was

and continues Our strong sheet balance to reflect position. ratio is X.XX debt-to-equity net at our

hedges approximately next of XX.X range INR derivatives flow dollar. of in XX.X INR months largely for around XX million, form cash $XXX currency the to the the dollars to Foreign U.S. hedged for the are

With Erez highlights. business addition, of over nine billion X.X X.XXX take In now to key INR have rate months. ruble the next request maturing RUB through hedges flow the I of the we at this, cash the to

I across to challenge responded with and serve came market. and want everyone. that Good environment fix safe them you you, and to I I families hope current during employees difficult with partners your morning another out our speed all. see pleased business remain have and times. ensure agility to and evening Thank Saumen. up continue solutions good to the that thank to we patients healthy to these am

well to performance continue and We with journey progress consistent transformation financials health in all improvement our on across parameters.

ever India, this X,XXX of sheet flows. perforce crores, consistent XX.X% annualized delivered The strong and of quarterly and cash again and balance yet generation XX.X% margins highest level INR ROCE the quarter. quarter recorded financial free improvement. of low and branded us EBITDA healthy position annualized of the have of to strong COVID-XX invest sales for and We net markets market debt give saw fundamental Despite we businesses have demand all reasonable growth. witnessed our growth future other demand, across headroom during impacting in sequential Russia, The healthy

new the market, strong was momentum to in overall across fully However, acquired products launch leverage to the it The yet is by in recover quarter of Wockhardt benefit. pickup brands pre-COVID and sales cost India, levels. supported from

our share and believe that the direction in strategy across moving line with We markets, continued of progress productivity. right we expansion diversified levers key of in well back in the and are further on market future in growth improvement

also have progressed We effort toward COVID-XX. our in against this fight global

we deal As you vaccines distribution a five trials entered aware for to and clinical RDIF, Russia are in conduct with into India.

candidate clinical combined soon. We are initiate III going vaccines II trials very for the to Phase and

towards that options for various of the to treatment products In in markets. are launch addition COVID-XX our development as and we working multiple

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

for remain and strong of sales the such North are launch fiscal recorded our well more nine the witnessed launched product, Generics likely olopatadine and The visits launches. of eyedrops. this procedure than and during on we OTC HX, products products busy offsetting in We we We is including dexamethasone, the year-over-year limited products gel, as in launches million impacted basis. competition OTC XX% America quarter that quarter elective track a supported product by on lower volume optic and include quarter with believe to first-to-market the a growth launches of molecule strong in growth would expectation by competition $XXX Our in XX X% of was during With some hospital. also XX new exceeding select new segment, business HX products. momentum limited uptake lower doctor suspension, sequential terms to initial the launch

the of Europe growth since with recorded launches new the was sequential by driven and business product growth XX% across of of markets. growth €XX sales The quarter million year-to-year X%. Our strong

three Austria. In countries. in and the Italy, Germany we our strategy line one deep market products quarter and launched our During product the EUX expand with beyond Spain, U.K., quarter, our pipelines Austria our in to Europe in current in leveraging each the into across presence

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

in witnessed markets gradually demand emerging XX% on constant currency. by the improving and year-to-year on business basis market X% grew Russia in quarter-to-quarter been has basis COVID-XX-related the after a decline The the Within segment, QX.

similar saw our trends CIS in also We markets. improvement

this in quarter. perform Our China also to is in business continued well

During emerging we products new markets. launched the quarter, XX across

products crores strong Our with two supported sequential We or with of seven COVID-XX-related year-over-year COVID-XX XX% by including quite in quarter The QX growth The internal treatment well India injection. to India this in and ahead made the supported which improvements a and was XX%. growth business sequential the a due growth lighter a in strong INRXXX demand by of recorded sales after market lockdowns. of sales expectations. and Avigan acquired new Wockhardt from contribution also was launched has Favipiravir the performing Remdesivir business been the drugs; market of

This growth coming to as quarters with a X%. year-on-year prepare of carried demand to up potential with of API sales in consumption. believe COVID-XX-related of continue end disruption. catches and -- in that likely recorded business is and quarter We higher normalized customers was our being to this PSAI get for to by -- we the million growth inventory inventory Our due this level any demand sequential part $XXX strong continued believe XX%

dynamics. business a in due by this to on position, product focus expect improvement cost our growth we key evolving However, be development, driver market new and to supported tailwind

to pipeline the On the markets. strengthen continue front, we of across products R&D our

United XX this including across two products in markets global we the formulation During States. filed quarter ANDAs

including As of we and U.S. filings NDAs. XXX(b)(X) for September ANDAs pending XXth, the in XX FDA XX two XXXX, cumulative approval have

the filing files XX We drug also U.S. filed master made including market. globally one in

at that building the we pipeline strengthened our significantly In new development pipeline. biologics In submissions products on increase accelerate across next markets relevant parallel, biosimilar will months, in development licensing monetize are R&D a of maximize continue assets to and well. On of trials COVID-XX. our continuing filings. is front On multiple actively products value. Phase progress wave this of including coming rituximab sustainable proprietary product have to their business, our III transactions are our the related which we for to partnership the stages and for Simultaneously, working progressing We investment we effort different are development. our globally select toward

to Wockhardt, from we growth We the we to last the quarters like volatile on After questions priorities. this committed continue agenda us and on market of successful the our help and two our expectations floor moves. in remain progress integration journey environment, continue do would all of to meet to acquired the best answers. our our stakeholders. opportunities inorganic achieve successfully over I open current by for the of more to sales our complemented evaluate With strategic Having business to

you Thank much. very

line We Capital. begin The session. the Instructions] [Operator Axis Please question-and-answer from Prakash of ahead. question will first the now go is Agarwal from

Good all. evening to

volume my is opportunity help us the you for first or Favipiravir? Remdesivir So, and could the question market if understand

we for India. Remdesivir, built Yes. certain capacities

from in India demand are India capacity is from And both other expanding very well So, markets. ability going as help to it it our well. marketing as we to are increasing we currently, emerging and

we clinical this trials product. As the of have of of what original for top on Favipiravir, set

of and support we we be and seek try well us will data a trials of emergency to in indication. now potential trials India as will Emirates conducted variety the will conducted to the the organizations in it. if data allow Kuwait in So, as the well Canada And additional use have U.S. as as course

be have Fair just of color Remdesivir or share data some would could what in if you currently be are terms volumes helpful? that enough. in is given would some you selling market that But the

moment. disclosing We not that at the are

Okay. Fair enough.

gross So, question the on sir understanding. margin second

is incentive and the export reason, price so you -- partly So, that clearly mentioned erosion.

September our is month what it not was only So, the understanding there.

Ministry So, that export accounted since going August? till have be do would there's forward. we account going by not the any And a export we incentive there how forward statement incentive

PSAI the margin the the and So, we for what Generics both that on and look is outlook how global gross business? do

next So, quarter it was that September. export it you're will quarter month impact from And impact one quarter, incentives. of right. not this the a full starting In is or be

you and if some at the year-on-year definitely compare on quarter-on-quarter I that basis year-on-year So gross normal impact margin alluded that in earlier has was a forward. range like-to-like gross to. the last going margin if high clarified And you look that beyond very year

over -- quarter margin because look So, one-odd range. part is for range exception very if goes some But a the always it been fluctuation Sequential maybe multiple believe be we than was a more is normal at you if would and there quarter XX.X% could higher that. quarter-to-quarter. quarters dollar of gross years a you have than than will In also now odd is worse that our is U.S. the QX, be is the feel kind much our within yes I ForEx. decline One normal there which see it could INRXX.X. the range. INRXX there

is that which there mix of that It include this so So export an -- benefit business product And multiple beyond business of mix impact. we many that That's has one factors course mix are segment everything. has an impact. month

So be contributed. the can give improving outlook. to have SG&A very difficult that of fluctuations in of there. which overheads effort is or improve effort line cost is That but we also any all revenue. continuous not It's that is specific the only to productivity, us other for we kind say bound But to

Okay.

I export understanding? forward? going being understood be quarter normal the there that correct largely was for be full the what the despite range would So maintained not Would incentive

withdrawn for – be Earlier government. I range. will export not by one-month is normal – not also started That No say incentive phenomenon. going supposed the this this be this will It one And there. this concerned has end, that impact. was the said, is in earlier than which in in quarter be forward is become September in to month. scoring XX.X% so I as what this thought only And was is December will means, far us. structure normal the there

improve be neutralize things will to other that. in do what software, improving neutralize we’ll effort cost of by or can improve, of how you how our you you So revenue, extent terms do many

you, Thank Okay. sir.

Thank is go HSBC. your from ahead the you. Damayanti go question. from ahead. [Operator HSBC, Kerai question Instructions] from next The of line Damayanti Kerai with Please

am audible? Hello, I

are. Yes you

ahead. Okay. going My regarding SG&A cost Yes. for trend you is first opportunity. question Thank the

I'll up side. So be and in say understand of opening I second quarter the the things market there marketing portfolio. will of incremental integration reflects cost up assume full with now Indian impact coming on And Wockhardt's promotional we

coming see you do how So in SG&A costs moving quarters?

always on of around would be start sales, So is Yes of keep like been very cost And as good. is on SG&A increase. then on our right this sales. definitely. the that and to effort self and productivity. improving how are sales, I able percentage improves SG&A costs as XX% it more told basis growth. already doubt an I we more If get But the and you more have are you may a on do we because on lot has first think marketing good contain on absolute term, manpower quarter happens of a an leverage quite SG&A contentment the you been if terms productivity And we in getting a absolute spending

that for second response. cyber Thanks on And the is Sure. attack. regarding my update question recent

So after to this looking at what investment more of of believe need you do you to in there? you And secure incident, your kind are invest system? resources

terms all digital increasing in both the been up our have of we measures. as footprint, well So as building digital security initiatives, information

But most happened. And extent particular case, attacks a write-off has the have of there able cyber we this always attack would great So been have been which been happening. in them. to to

in security have enabled and being and manner the of taking kind to right in restore systematically the in this been our very isolating cautiously. of the and stake took, we really of our to are And – as experts our contain have we then also. And service terms have from believe, cyber And very exchange given stock critical impacted of I the cost. controlled notification, by applications backup so already IT enabled a very time, we most as international help

things complacent any but nobody a time, – So manner. take point can in of at

attack continue can doing not But doing to as at is have far it's but whoever of we we'll in yes, past, So cyber we more do surveillance and you this heighten been an effort a wants anyway. whereas are do reduce possibility. ongoing by of the the the it's point cannot matter but to time always you always investment, chance eliminate concerned, the

can of target, per defects we some It that things way there which newer minimize, you whatever The an invest. the So defects comfort no but cannot ideal. build. on we are happening of down. can so we of possibility like the that's zero more Sigma you get scales only Same million what improve way possibly that because matter almost of newer you can attacking. your comes but eliminate, creating level other in But and and you are security terms many is

Sure. for your Thanks response.

I get queue. in the more back questions. So have I’ll

you. Thank

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

Yes. Thank you question. for taking my

extent. saw the increase you level for an a Just outlook. on given such and level? -- two but increase a reason last other the I normalization spend. have explain operating spend Could our moderate of SG&A the bit understand versus helped to I the little But your more this absolute that we businesses the I what operating to because Wockhardt understand branded look in some leverage, in we if integration the at quarter, quarter the on delve offset factors? the

on then the contain we told more have when do sales able to only various expense on. you But been we and disclose has cost. we as components digitally already a marketing little can can. virtually, has been SG&A the been as broad, specifically, This And cost. And a improving be of The containing bit much I as things effort lower. there sustained and will going that

the know. bit So been has said in a which reduction, little The I freight which quarter, don't up my sharply in there have already script. went previous I

Understood.

And right? back as the markets which so you Or should the are up, more that sustainable, physical cost, control probably digital do be see this marketing? to helps go opening marketing, we

Yes.

more use going marketing, going going and more we're So digital are forward. to to we be absolutely, productive

And actually we even beginning the the So do level are marketing. the ourselves increasing at digital of journey. see of even I

let's part. the, marketing will expense And which better it, some be of of the on call

So more to on more and the and SG&A. more, more we are going be

ROW If to exclude moderation there I My a CIS, is second the there on Was market. question for specific Russia quarter-on-quarter. that? Understood. seems be reason any

have been this Vietnam, There countries Jamaica, like some has in the quarter. where been sales lower

a XX% But quarter-on-quarter? decline

Yes. It happened. has

Okay.

smaller markets products written sometimes [Indiscernible] the are of by on of markets that Some were also dependent are COVID. specific Some those post tenders in affected

think in healthy we performance I I in I'm given a challenges emerging -- in were have this So the pleased, very very of markets. these overall, some markets. actually quarter the that think

Okay. you. Thank

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

on Yes. conducting Sputnik in the and you're V trials India. Hi. question was vaccine the My now

you then of size the the as the would clinical when and your patient trial? trial give time visibility lines you us what's clinical could to of pool launch available If you product? understand on help be the can us results can any And

to because is the be also with successful trials. we need everything So sensitive,

or of results, soon be course, with the the of that, course, We go soon. also conducted India, after conducted course as that it And XXX talking in of patients, a which about for will March. of authorities. Phase go the because it's well will will is will global the trial, be, requirements that to many very need on the well on II after which it things end X,XXX trials approval big relevant everything course, are about top it of the If start Russia as the right, as as of of depends, right can be authorities. But, hit, which be about can and, are

it. Got

readout clinical conducting, So is is it…? How RDIF that trial trial? the the for patient visibility trial the Phase what XX,XXX is III that on

what of trials. test. they of What part -- on India in the They we global have it's the is the arm have top do relevant of

I kind need will the have that bridging that the study from you large-scale data understand. in trial. thought clinical approval I Would a But data this both you you and will India? for mentioned be of an over above

Yes we have will both. have to

question larger some III might there be is, of data the on coming the Hence there is visibility clinical out trials? any Phase when

on don't that scenario I what as best date today. specific have I you a but a case gave apply also

it. Got

question. related more one Just

the identified? XXX vaccine to press saw we will actually in capacity that this release On doses has you is able supply be that being of the million

are will on it that And it. hope the working Yes, product. commercialize time be ready we the can that I we by

up XXX you goes everything and right will a well have to period by and that happen doses? Or assuming you the capacity over data time? March, approval have would So of million you the have scaled

of capacity certain build will We will It will have not we have time time. a over in space time. over At that come we the point available. million that a XXX

Okay. Thank you so much.

Emkay Global. Thank The [ph] Kamal is from you. Dameisha line from ahead. the go question Please of next

Thank for my taking question. you

is the basis. first question on So Wockhardt

Now have a you one of so therapy? that synergy portfolio of there it we lot overlap is in for any you've terms integrated have that that potential quarter, because identified full

as join with us as from as this Wockhardt. I'm integration, that from from well well the product, people pleased the very as

So gives and top and line bottom executing Wockhardt both deal and are I think us meetings, we actually discussed the both synergies we both. on in now line previous

we So can less sell cost. in more

India? be would in what sales force your And current Okay.

repeat? can you sorry, me Excuse

sales be What would our in India? current force

discussing We are numbers not of people.

Sorry?

It around X,XXX be will plus.

overall? The

people. X,XXX Yes.

And Okay. the the Europe. Thank is on you. second question

much If how products that? market, be we We we it do launches? or EUX we or x our growth years product in by new that's can you and globally? terms maybe on you or I So portfolio Xx in are now all those some color significant of in go three, next have new and in runway some four this if U.S. color suppose provide right driven in launches product can from whatever terms seen new developing in Xx can have give to product is geographies. But we will year Europe Xx the have of and

we color just The we product. consumer will is funding in beginning the And much, more. that that grow much I Yes. believe we Europe. just started to of

now of to the room – our us basis We in are for that is very future and not grow for low naturally guidance there Europe. lot giving a are

any And on Europe margins they with be qualitative Okay. commentary will on or… whether margins company line business in

don't we that. No disclose

Okay. Thank you.

you. The ahead. is question Thank Motilal of go next line from Please the from Tushar Oswal.

Yes.

Just now extending there another is wave the question COVID. of to Europe

So do you see any near-term impact on the business?

Another wave of COVID in Europe.

Yes. I not. hope

far I not see impact any so And do the on business.

just balance sharp the Sir, a it. sheet is on FY side, XXXX, to compared the other intangible Got assets there increase.

So could just if that? you explain

Sharp increase in what sorry?

Other intangible balance the on assets sheet.

deal. This Wockhardt is

for Okay. That’s it me.

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

Thank evening you much everyone. and to so good

your innings best is... wishes question first the First and on Saumen future. of congrats long all for My

you. Thank

My first is generic question on Vascepa.

back just great? – would If holding expect you share be you us to you your around could tell with launch Thanks. commercialization when us what's do plans,

it. will up launch. we gearing We And launch are the for are we when ready

What's months the launch you've not the the court the It's a few for got key bottleneck approval, in got the but still decision. market? been because you've

ready We that for keeping to weeks. and us what are not launch months is

some there flavor and share on which two sort would great you worries. share because big can given a second and entry No much product? exit it's question even the settlements they some settlement. your the Is color the the Natco you of can XXXX. was REVLIMID that around be and But between know qualitatively don't had other a I market cool. Sir is how Okay Alvogen, XXXX share.

cannot say we am of very discussed specific it's the what we a part the that I pleased because No, But with share in let's settlement. numbers past.

around vaccine require second any refrigeration? permission vaccines. will the Sputnik-V states distribution your of announcement free and with Sir one made And more some of giving that's Okay. specialized And question terms in vaccine. is have

any So, you? commercial have implications will for that

These needs be cold chain in require vaccine this to kept chain supply -- as low a very will temperature. product

So, product. it's consideration a yes, for absolutely, this

this this and discussing not is terms. the commercial it safe. and right are not in at that not on we're of As with for are will did we prove prices we be any stage. discuss we about Once product arrangement, discussing. commercial the we we What efficacy is worry can will to now Right any focusing that

got more; so in Okay, you I'll the Thank great. back get queue. I've much. few

Thank you. line ahead. of Baraia go from Vishal is The next question Aviva the from Please Insurance.

Thank you.

Just on trials the vaccine to on would the in spend plan for that conduct to the what continue Sputnik-V, we India? be

on not products are What can months we as going contain in numbers. able we think the are just R&D I six At are other of I say same We the bringing. specific the next time, sharing but that cost to of -- COVID-XX be the other we to that because is will business. also increase Sputnik, buy this parts to improving on not

be it's it something So, that will I think contain can easily.

Okay. And one question on the United States.

-- products say base be business the the have this in that helpful. second how would So, exclude perspectives behave? we what quarter large on nine these if Some launched could we

the to down behaved is the et the general patients well. see of of Overall, and In at COVID certain were that molecule you in it look you time way meet, doctors and at of ability behaving prescriptions overall if because can the see market primarily [Indiscernible], you cetera. demand

molecules demand we've last see also do less least we increased we molecules overall share. feel accordance market we I in we And see seen So, -- some that more as well and some to demand. what in at

going is well it So, of course.

would erosion mid than that? The better be base there business for high to or price somewhere single-digits the

this in products prices overall to case but moderate And pressure of for sub-segments is is we are before, there it -- it discussing But be this -- years there. -- the is will say year. product. for more specific used be let's not the price We or always also no this the year than

just business, on COVID-related products contribution for on what be And question last the the would the business? in Okay. API the PSAI, API

two the producing did a not to contribution. the years. is big call API that are attributed comes we some last have growth of Most we the for -- normal and it's the products but them, efforts in growth It's let's much. Not we the of the that from it

has been APIs, perspectives? how some And pricing the for

Pricing.

asking about the of API? You're pricing

I sir. the we had there when market. was tight a Yes pandemic, mean

views there does So currently Some continue? as Is a that well? over there.

I more as companies normalized orders think also the beginning This there this for forward. the going pandemic, that's was of product how that by a we and it at that got now themselves of for bit potential see scenarios. build

do half run well? So, growth year-on-year for rates continuing the think you rate run second -- the XX% as

I see the we believe the second inventories. that accumulation of in not impact will half, of

the We will see that normal comes. growth

see see some not maybe We of effect. full effect. the will we So this

Thank you very much, you. sir. Thank

the go question of is Patra ahead. you. PhilipCapital. from from Surya line next Thank The Please

if a we near for domestic thing, Yes. possible almost there this market. XX-odd-percentage the the focus what of. the from really strong, growth would about have like suggests opportunity, because is the looks we by sir. [ph] is have seen contribution it be sense, domestic data Wockhardt, the Obviously, Even a sequentially, XX%. recovery you it -- go Thanks portfolio would But that IOCB kind Sir, that of kind COVID for muted if sequential is to this adjust but the in only. a

of this the domestic is fair meaningful the from to quarter? kind So it COVID growth contribution say a for portfolio

that say helped, would COVID more the I not significant So growth. it's but

as well all think, perform the of together. I businesses

the that there So of recovery it fact a was the is market. in a combination

we that Wockhardt, well the As now helped portfolio the it you as us, as so was during the COVID of type absolutely as know, more well as the suffered had product. open, lockdown, lockdown

them. of combination the the three it's of So

okay, think, you -- oncology of studies, strong I give for are so But really portfolio the is that of number COVID, regards -- of a question And effect XX% curious, -- what U.S.? just since extent is in some witnessed they you kind products revenue a this, that, quarter four, have that can understanding because the be U.S., base the of same obviously, the kind and would your period. there sale decline us there. oncology kind growth say take If really I then five-month Okay. some the if is XX% last great. To look a also over there for of or the

delivered what have of this kind So that you growth? kind of the would despite which impact have witnessed, you

in we that by lesser had we be oncology, for due have some hospital-related we did not COVID. demand were were of less data to market well that decrease. and the who injectables as overcome or Indeed able price for relevant new some the able us, declining the certain demand, it -- the some to those of products, compensate of can Overall, see share products, products as between other just for demand to

products, So including compensate less injectables. price as for these as share, demand in some new products, more more certain of volume well

Okay.

vaccine question, sir, the side. one last Just on

concerned. So can if commercial say, idea that, product of far launch the as some so is you provide the

leading about expect knowing agencies government domestic multiple case, think, running vaccine do fact or are only launch. manufacturing there the you through or only. and and through In having agencies is be distributing a vaccination government almost seen program or the who there players vaccinating I to are that that indicating procurement government the hoping are to

if for scope any thinking product So introducing domestic domestic there they're is market? in business about scenario, kind in of the that in the market,

correct? vaccines the about asked you So

yes. yes, Yes,

Vaccine is for it only don't market. have the other for We markets. domestic

that that and with is competition the I yes, product that that prove don't the do need see believe I sure that. hope is a So, any this. safe right on efficacy. And great we not I'm for I will there --

what sure So related I'm you of not kind to. competition

all Okay. Thank the you. sure. Wish Sure, best. you

from ahead. Thank of The Please next you. from line Lilladher. Pal go question is Surajit the Prabhudas

into various for what is as come question. issue me, for you API tell -- has the some main taking in liability please picture issues Could is cases Vascepa, where in other stimulus could as given the litigation the verdict? that there manufacturing well some happened my in Thanks

product? for Surajit, referring you're which

Vascepa.

Vascepa.

I'm commenting around for and launch are -- Yes I when the not we launch will not activities on before, we said are we're prepared the we What ready. on this commenting products. the

could so could three throw -- actual when possibility Any you some months six months? on light that be

not can really. Not not yes, sensitive you information. -- that a because it's understand I'm because planning,

Okay.

about your in Another question Favipiravir U.S. is

going So ongoing currently, I believe trials.

So any development that? on

States. not And that accumulating be the and the I to registering Emergency to of in try we if we will Use hope are product. patterns data we do Yes to normal Authorization the the United able will seek will to so. go we in try

And what be... could

Yes.

Sorry, yes please.

time line throw time possible Any Could that? some line? you on

Authorization. will discussing that we type a the But see have And is about within to are specific data. send date lines. they Use I are don't we to authorities ongoing I next Emergency to want are of with discussions happen anyway. have allow Everything within order few the data the in don't trying There the months time this that.

All right.

With the V XXXX Is last budgeted your permission that trial, is question. just $XXX FY budget for million only? Sputnik for it

I never said...

XXXX XXXX together? FY Or process into is that and going

million Russians. we from for a that licensed refers to getting are India. put quota R&D the market We the the of $XXX as to are injections That got expenses never we number in the numbers numbers

you Thank and Okay. best. the all

We never R&D budget. the discuss

Please next from of Advisors. The the go Mehta ahead. from you. Thank question Nimish Research line Delta is

to opportunity. margin for the I'm thanks business. Sir gross trying generics just global the of understand Yes,

have XXX which added. points have two very has on seen activity, actually whereas got sequential a decline global basis We we of generic, large

exclusivity. the second of So sharp domestic launch business. XXX products the U.S. is the one in in And is day the increase

should the should generic So higher far basis least looking have decline. XXX are margin point sequentially a we both be but have meant the been on at at gross versus that global that

is what here? you can great. If that So that will I'm explain be missing

I reasons. because distinct three is there. one said One already is incentive export month impact So lower have

rate. ForEx Last quarter was it or Secondly XX that so. was

This quarter XX.X. it is

impacting. ForEx third is mix. So at first rate product is And the

reflect sorry captured? to is But margin is I'm Sir, margin ForEx does or the gross disrupt. it really the below gross that

margins. So is of terms some in there impact

Yes.

C of the U.S. gross most comes ForEx [ph]. impacts sense basically the the the sales sale happens in So our margin in down,

comes been impacted as then has And down ruble impact it quarter. So this close further margin the gross to also.

is also impact there. that So

Okay.

to send are approach. sufficient this the reason is they impact ForEx sharply two just compensate largest factors, from happened? the understand I perspective, this increase? still I'm am mentioned, wins. One business, is can the So taking the like very the by domestic I has up that mean for to I seeing trying which mentioned you is and strong a elements you three

impacted. than has Yes. products, this other there which other We are also so need –

So these two have contributed possibly but there are factors which have contributed negatively.

product So where mix we there is see. a overall

Understood.

I we product want have we note, there And an Okay. Remodulin, is I don't And integrated. I second, just been already a where approval. have think think to

from launching I that important product? Dr. Reddy's product us for would competition? stopping be given understand the low that an is it what So

Yes.

there So are are which activities pending. certain

the we product. once complete maybe So then will those launch we

Any see. be that great. time give you will line I can if

line As of give we you any will have more have [indiscernible]. time clarity today, we once we but don't specific a little bit

you Thank Okay. very much.

question ahead. Srinivasan from The go you. Please next the line of Sachs. from Thank is Goldman Shyam

my Hi, taking question. for thank you

the to of adopt the started do inspect least FDA Have to a first regulatory you in outlook. inspection that from changes these calendar perspective, think companies some regulatory these starting plants of some your the on need to And one while you year The like do at inspections? seeing having plants is global the U.S.? what XXXX

obtain information So, is give did remotely either not some they to for have other and of the to that or inspections outside and we present means doing as meaning hospitals are This some that using people U.S. FDA, or the -- to data the -- we a for agencies. adjustment need. as remote the that's what certain cameras having use for audit and other to India. do agencies of them are that's to preparation audits And needs be performing

some could we do doing of of for is virtual in plants that Do physical -- remain you need criticality just audits you think next or of keep versus audits, qualitative terms -- think you terms could inspections virtual audit the in ready? year, there sense proportion others

up agency. is to the It

some doing experienced Some agencies virtual even we and some don't. and audits already

I to here foreseen that it's to unfortunately stay for believe them. COVID-XX short-term. is the So, up

happen will virtual the large. people by I now have believe be to And those that and So, take decisions. inspections if will will right

the up. All right. question my And pick you. last Thank is business on China

in we this through have if experience of China you. And the far? products walk the selling part of all in clopidogrel these XX that think market can Thank so as the I terms fiscal of actually emerging markets done us you GPO? what

Yes.

and executing against again continuing are we you've mentioned. well So, with that products including actually the strategy the

well that We it is articulated like China growing. going for is so specifically working the But And product. we to for -- us. that in Olanzapine, for And get are business strategy is us. number our the products including the GPO not a respect the we way

that do to both continue are not well we for as as to So, commercial us. on submissions those focus products

Thank it. all and you best. Got the

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

continue thank years Dr. him to going with an much thank of for Dr. in XX-plus years but audience be month for Dr. front next I after you all and and us and just Amit this. with Dr. this that is I in excellent retire so Reddy's will to Saumen do So, collaboration And And audience this finish, before want and all to for and after not thank hope I continue to you that. service Reddy's. in leaving him going thank your will with you you'll to want these is to to collaboration Reddy's, with Reddy's to he

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

Limited now and Dr. conference. us. for disconnect Laboratories joining Thank this behalf Thank your Reddy's you you gentlemen, Ladies you of that concludes very lines. much. may On