Dr. Reddy's Laboratories Limited (RDY) 14 May 212021 Q4 Earnings call transcript

Ladies and gentlemen, good day, and welcome to the Q4 and FY '21 Earnings conference call of Dr. Reddy's Laboratories Limited. [Operator Instructions]. I now hand the conference over to Mr. Amit Agarwal, Head of Investor Relations at Dr. Limited. Laboratories Reddy's over and Mr. Thank to you, you, Agarwal.

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

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

G.V. Over Now over I to you, to hand sir. call Prasad. the Mr.

by frontline remain our the all ensuring you patients call evening, to ensuring I teams and for these I the by and Good would precautions during this our like families want and the safety thank in of COVID. are bottom all of my will thanking rest for world. the challenging participants. also and healthy for they Thank morning the hope to good workers good teams India I from all afternoon safe times. you, who our of teams the COVID that all doing and to start your do the work heart are Amit.

of and belief All wait. our at that by good can't driven are us health purpose Doris

with are in is and treatment. we We a develop preventive the and This way COVID in reflected have and patients serve wide collaborations urgency. range multiple entered every for utmost possible curative motivated to to commercialize options of

already V vaccine meet launched today. we you As supply up few past ramped surge multiple to demand. including of know, Sputnik over also, in have weeks, And Remdesivir medicines, we the our the

market working bring treatment are options, of on few we'll the newer to We next also months. which launch the in the

converting insurance our facilities, to coverage, oxygen the treatment employees, all we supplies in market We markets. Being have help uninterrupted in-house to realities, medicines manner training dedicated additional demand are of we virtual sensitive and some current our supporting with the are continue also medicines, ensured required consultations, extending for arrangement -- our that all continue existing doctor the into our our of to support. meet any other and possible of residential including facilities people

we building we as part as back playing are to health the attaining current the also digitalization on focus we improvement in get for many finding in while and product them people are to committed advancing and us, innovation. possible available strategy to rapidly years. -- shortest to our all helping for for extraordinary to solutions also the chosen Each patient-centric is our this, soonest. science, few committed all at innovation. possible time. driving next future continuous will driving are people and excellence of market the We is of do our in with and investing operational through This in growth making times what remain These call drive continue and our we spaces, But leadership business to

With remarks, Over the the to financial you call you, over Parag. for performance for year. through to of and taking Parag I the hand quarter the these for opening the company

everyone, I thanks Prasad. you, and the to Giving healthy. to this for our and through joining safe Greetings you from results families EBITDA COVID It performance prolonged sales for hope operations. I'm another keeping fiscal and you full call. take flow and Thank are pleased good your year XXXX. a ever yet of financial the strong quarter in highest of X and with is cash year generation times,

to Sir, the phone, I may you to a closer sorry you. so interrupt I'm bit sir. request to come

better? Yes. Is that

better. Slightly

yet with cash strong the another operations. sales by 'XX and the challenges. both for is in The year and income impairment from despite performance COVID-related EBITDA It and out-licensing good year adjusted highest FY flow in grew generation a ever settlement for financial year for XX% of Okay. and PBT

X through the as highlights more Let financial the financial for companywide me bit take you detail. quarter in a and year

XX% growth is income incentives are over INRX,XXX for crores. grew XXX due higher on is rate The of the 'XX, XX digital a XXX additional USD all the and out-licensing of primarily scale dollar translation Consolidated is at financial USD that assumed the R&D business an across 'XX, Gross Consolidated in the the X.X% XX.X%. to million. year amounts million, which and been our INRX,XXX crores, basis. X.X% branded million. year-on-year basis margin The quarter erosion for markets, of revenues higher R&D business X% markets. primarily INRX,XXX milestone and in an in X. grown to is INRX,XXX by filings for quarter. productivity is Gross investments spend gross EBITDA for Year-on-year billion at X%. year. similar the XXXX. that has acquired at INRXX.XX, for to is generics grew quarter that year is contribution crores, sales has a the higher INRXX,XXX and the stood the BOCAD, expense quarter spend improvement crores, markets. improvement at at and quarter million building launches, reflected is declined at million section, March markets XX.X% which XX%. XX.X% year. new year is year-on-year by convenient in financial a global in portfolio basis a been decline by growth lower in is attributable of XX% from from the XXst which a basis freight The with to stood 'XX. by acquired R&D of previous as on incurred year-on-year is in volume, growth this to XXX as year XX.X%, in and points is and partly is INRX,XXX increase R&D with that SG&A quarter for most percentage the is USD crores, XXX margin for year-on-year costs has new income cost margin and year EBITDA and is for of A were The is quarter line is EBITDA USD improved in for integration that Sequential an been is for BOCAD, points year. margin is quarter-on-quarter. X.XX is to for X% USD sales. and global X%. increase is which the generics of supported product 'XX The lower sequential crore XX.X%, product stood price at That for USD the decrease rate year XX increase productivity, percentage The stood and is EBITDA and that filing the primarily our sales increase and is generic was improvement is costs. of the for at The of million during capability into quarter crores, FY of in U.S. was has this line basis. product. The businesses. USD sales The XXXX USD The quarter-on-quarter translated financial X% margin with recognition revenues year the For with and year-on-year, by at XXX is favorable. of expenses a profit spend for base Gross million, and growth INRXXX and previous XX.X%, for XX%, in supported 'XX the for on is disease FY the The a XXX XX by The which up that COPI INRX,XXX points were XX.X% mix for basis margin financial due XXX PSAI of the SG&A export offset decline our crores,

INRX,XXX the year goodwill tax for tax impairment. quarter primarily nonrecognition million. at Effective out and higher arising rate INRXXX for stood on that tax profit USD tax USD been that to crores, for million, XXX has of depreciation is the recent due the at been income year in due That deferred the to Our change quarter pursuing EDR of XX.X%, at and rate tax for losses XXX of a the regulation. assets related assets The been before impacted recognition to crores. deferred XX.X%. is has tax stood has Effective

that crores, Reported for be to USD million inventory. the expect mainly in of year tax decrease after million. decreased in by XXX normal with We driven at the is which million, stood Operating quarter that and XX, working stood USD ETR partially increase for XX in that INRXXX to crores, December receivables, for INRX,XXX the that XXXX, and INRXX.XX is on crores, USD at year that INRXXX range XX XX% is Profit million, again our XX%. EPS offset capital quarter the for XXX.XX. the is is by

profitability is the XXX mainly this free and quarter USD INRXXX XXX flow million INRXXX Our INRXXX million crores, XXX crores USD crores, million. surplus at USD is million, decrease the during quarter of in The which was crores, The XXXX. a is XX, as XX of generated this capital. supported March we operating which was in cash USD crores, at which free by is generated during million INRXXX have cash net and flow INRXXX year. now USD that which Consequently, year working during XXX capital investments is stood cash

and rate around of dollar the next INRXX.X this, South INRXX.X INRX.XX are the through of million, million in X,XXX now highlights. Foreign ROE, at request African take to the held currency of cash rate XX the derivatives at at USD With for the maturing African AUD the rand Australian approximately million months. range dollar INRX.XXXX INRXX.X XXX in to XX XXX us largely even of million I to of dollar, hedges the rand, to the Erez business rate South key the to to flow form U.S. the

evening good safe surge that you way and morning, ones have times. and in to loved Good well your to everyone. are operation these Parag. our staying able with quite the pandemic I India. you, I'm Thank been business to hope manage and this we unprecedented happy during of

drugs leading business several of India, consistent charges and markets; efforts global COVID-related by for for a While of size on the a towards forward today. each been significant continue year we the key commercial accelerating margin section targets; to indeed sheet, to BOCAD launch generation our clinical have of our trials XX%, and major pandemics successful development adjusted product pipeline we long-term push productivity completions move aspiration. the the an scaling to areas. improvement reflected range acquired manufacturing, all following in launch is to India, us, towards V stronger market growth and leading balance also eventual The of with Sputnik R&D as our highlights: full ROC made business. in our for strategy part attaining sales in up our vaccine drugs, of for supported a aspirational to committed healthy agenda businesses of cash from for successful integration impairment which across growth of EBITDA in development much year of bring has 'XX of flow healthy and to milestone COVID-related all in remain our

take you business. highlights reference our me let Please that numbers the note key these sections the to in to local of in respective Now currencies. the business all

quarterly million $XXX X% Our with of X% the decline a sequential of and basis. growth on the a of North America sales quarter, Generics business recorded year-over-year for

which the driven the back was of base by by managed to CGP March level X products, at tablets, million, by including the and launched the energy much buildup full year, quarter, industry Overall, business the COVID-related been basis, to the for $XXX On the relaunch. more. a a for On loading rated patients X inventory the all has the due status. year launched which products grow year Remdesivir pantry headwinds business higher of significant Despite We we year. slowdowns, previous has new over XXXX, were and lockdowns of new including growth the during customers XX second X% COVID-XX sales time.

We the momentum similar launches. with through to current year well expect launches as continue this strong new number as of

Our business of growth EUR of X% sales with X%. decline this of Europe recorded a quarter million sequential year-on-year XX quarter, and

improvement the and has EUR full strong the new XX%. at million the On since volumes year, sales The by of across in product growth of XXX a driven rate launches and is grown market. both

in in we Germany, During in X quarter, Spain. the and U.K., X X launched in new products Italy X

new across had we the in During year, launches markets our XX Europe. full

key businesses in both turnaround Europe. We of extremely are and strong with pleased our Energy the cogenetic

of sales On crores emerging INRXXX basis, recorded been X%. sequential business XX% full of have growth grew and of year markets emerging market a the INRX,XXX with crores quarter and year-on-year decline a Our sales X%.

decline EM business been XX% Within constant QX seen The in and quarter-to-quarter this grew a quarter. In to Russia FY basis the by quarter-on-quarter grew business due currency. largely has 'XX, X% cost on in the in the by year-on-year slowdown market policy. in XX% and by segment, declined Russia on basis a

in has beyond performed Our China business there. well

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

demand and the seasonal growth sequential the COVID quarter low sequential sales as remain Our and impact QX X% recorded India XX%. infections this was basis, decline INRXXX for decline the with during business during and contribution in drugs On of of of INRX,XXX grew a X% crores in year-over-year driven boost by year. The by XX% a our was full for crores XX%. from BOCAD, portfolio the sales a our year grew full sales at and Adjusted portfolio. from acquired we

with in physical While surge. increase the reduced again in months connects physical activities the health we recent professional, saw COVID care the significantly to due

in quarter, the two launched products we market. new During the Indian

the report MAT ranked have per and we the of now March XX XXXX, As in number basis.

million, strong of of $XXX Our year-on-year sales a recorded and with PCI XX%. X% growth growth of business a sequential quarter growth

On basis, million loss of the a XX%. the sales $XXX strong with year full were

owing as fluctuations both quarter-on-quarter to order in change a trends believe we services be may headwind growth business. there in While API there business, a as sustained that book growth is for this well custom reasonable cycles, for

the assertive strengthen front, assets. pipeline R&D the On our to focus We we R&D continue value investment across of in products markets.

During in filings we XX the drug quarter, master globally, files filed including X made the U.S.

X formulation We across ANDAs have products in NDA States. global also and markets, filed XX United XX the including

position these to and part of or the as filed overall filings, addition to competitive deployment. variation enhance In cost market. Initiative business manufacturing we have in our U.S. new multiple supplement

the XX, March which we XX. pending of XXXX U.S. XX ANDAs FDA, include approval have cumulative with XX and As filings for

and please back call. Israeli of reconnected. Ladies you, we gentlemen, you Ladies be Over We the while to the and request the Mr. lost to gentlemen, we joining sir. line line, will we the current on would hold speaker. have

for disturbance. about the saw I inconvenience. this Apologies Yes.

with progressing are III trials. We Phase

took on are CTCL which of with In products, are indication. next different I stage business, development. our the proprietary of III biosimilar Phase So a we progressing for trials products wave

Additionally, efforts are assets. and key globally underway approval X monetize to market

During is of for the sale markets. rights the registration, which a current the of commercialization EU out-licensed X we of to quarter, oral solution development, Elixir,

confers solid believe pandemic, growth going us levers and uncertain in environment we business current for this the growth the beyond. to FY available foundation that sustain and is While 'XX to multiple trends global the

to organic in answers. balance Further, and us of be floor capability enable primarily like strong inorganic our enhancement, driven and and long-term With right focusing the growth. sheet to digitalization. I productivity amortization, works allow moves, invest would pipeline to this, the set in open ramp-up for the growth around Our continue marketing diversifications to by would questions

[Operator Instructions].

The of line Capital. is from the first Prakash Axis question from Agarwal

is V. first on question So Sputnik the

Just better. wanted opportunity to understand the

we we I we of about how monetizing have this about mean? it's think terms So how should And million in about plus since marketing and the doses. think XXX opportunity? should

Yes.

of million the initial dose first which from the XXX rights of And So come database million have patients. the translates confidence to for the first, XXX will just India, put the we in together, for have will product qualifying we India. that country make out come of India. meantime, in to which And X right This the the we contractors important to are the of locally in Russia. is

and also there addition, future In Light, quantities as them in engagement about RDIF permitted rights as are discussions of assets with we And the with additional are for the well other countries. India. for for discussions

stage the have So overall we scope. view the of -- that this is at this

if make for Yes. current we trying -- we assume on modeling even understand But price. the I the purpose, just mean, XX% to INRXXX, that

So as could high I be the mean, as sales opportunity INRX,XXX crores.

guidance, for decided we we not pricing And are INRXXX the of cannot what announced a will today, Russians that we That's be the as know You price give by tax. can -- that important is route we global the $XX. and about Escota Sputnik share. giving the before the

my And trajectory. Okay. on the is question Got second it. margin

then have So a below had are And some clearly, still X, the quarter improvement to one-offs. are quarter, guidance. we last lockdowns. we some cost had lower due But XX% obviously behind seen which our quarter aspirational little that X, we versus which

how 'XX? in this see I achieving So we mean, do

of And very giving are radar. are guidance. in again much are the much We aspiration, very we terms there. not on we But

robust. order We also make put to certain our activities efforts more in

capabilities than for we So building the in little activities. Including more future. bit digital the average a invested terms of

to past the shared on are EBITDA as much the the we to we very committed respect, as both that ROC. well the in the in So numbers that

Capital and Markets. from The Instructions]. from is the Securities question Damayanti next [Operator of line Kerai HSBC

ahead. go U.S. My Please on question business. is

million a our quarterly rate sales of $XXX million seeing products generally level. $XXX But XX, launch year. are XX around staying is within we to consistent So per

level on your provide for color should you or can And -- rate? the how is drive can some U.S. portfolio? quarterly sales meaningfully what erosion what from current please So price run currently

-- market the sorry. some U.S. I'm The

to please there's sorry participant mute disturbance line. I'm request interrupt. the Thank not your from to May speaking, some yourself while I you're you.

may You ahead, sir. go

Thank you.

continue U.S. to will models be So the way. that

So don't specifically, And the face our those, now pressure. price is the of of erosion products customers, with course, big model digit I will the same. will or price to to -- the If 'XX, especially the FY grow we of single but What to continue numbers accordingly. will know. developing. continue if the continue be into to as also will be do, digit, face going certain is it's But that trend double is it competitions, will products type this not model going is are

molecules multiple grow change and more cost same As more the to thus some both not activities that or are time, we pharma. the about and higher. higher attacking reduce about and profitability just the will profit. to of will it's continue you you And this our structure are seeing value. of we have cost And the improvement sales, the see the of At and products API doing know, you the have U.S. -- the it's in

X think combination a The on and focusing share. had promising, of increase every that productivity it believe it's very portfolio this So implementing market which are that better. same years quarter the ago, is things and better I relevant we our products, I market

my question second India And is part.

quarters? situation, see you current business in barring of quarter next seasonally So COVID around But and some how uncertainties impact India definitely has do seasonality. few fourth progressing

even the in market but in And of important, very the very high well are personally is -- losing just as believe a us, not India. all, very, in India, we for pandemic confidence I India. India very people much of first to effort part though India, company, I'm are as

in So I see growth do India.

probably well product several COVID We products. have as so will also, more launched we We an And launched as per -- over products Sputnik today. and come.

getting portfolio So is goes as time more more robust our and by.

capabilities, In grow which well. big a improved I India, better will addition focus and in as on to our believe is that, brands we the there

activities we we'll overall, that So announce we as very that do future India that. as when I'm in do the bullish new about will will well

from is from of question Emkay line the Kunal Dhamesha next Global. The

been be margin EBITDA the but So first EBITDA here, aspirational our the view the as of is X continue order importance? in share on product be would believe that, cetera. our et journey in margin, If which mix, towards have in of order impact XX% there that goal of your of have Obviously, you journey? great. could EBITDA But our a we are you would expansion could key what from on magnitude, drivers greatest

sure. FY Yes, -- has, although relevant drivers main comment, even are magnitude will different it 'XX the and the -- is different sound moving as it focus of One but The forward. in course, common, EBITDA portfolio. on

which more future bigger that. and So well profitable. we we will portfolio, attractive, will very focus much believe on this I very be portfolio build as On as

related the to second digital. conduct very operation. labels results. overall into increase And second The the we for operations, retired the very well of And one the our in which and automation. going that various initiative very we that time, quite is yielding initiatives. invest is piece We as this existing they have promising -- initiatives digitalization believe much in are productivity portfolio. this to is are We and heavily included as is our level are way And digital to in some is productivity we

need should then well on top relevant for facilitate the it's as our to as additional products of is and financial as more in I in it, of we our those going the capacity are all third share of both be we And grow them increasing are the future. EBITDA unbranded. markets those hope The we our it, to ourselves activities. helping these products, increase as believers capabilities. explore is that The also well of market in that try to top -- on meeting relevant branded are are the activities, bringing market the which on COVID

likely like non-term And till digital Would it or we also lot investment down will savings, to now time. speaking been its go to own follow-up our quantify the what maybe term, about of be realize it -- a cost which would medium is of you term with come and up near a in Sure. of would heavily. stand over we is investment have period investing are drastically and

So like provide you any color here? would to

the put investment. we on if I -- expenses, you can the CapEx goal other, So of this 'XX, say most operating in the so that is FY

digital to or that it's are activities whether in R&D related digital. or So in

the goal debt. scaling launches is have in of FY to So related is injectable in operations. up the that order CapEx the to we FY related come either this to our 'XX. That 'XX growth in in in And inflation of that, addition products and will also robust to facilitate that

correctly, call take before, I years about, less than if 'XX, prepare that. FY is CapEx than of a had INRX,XXX or So give to the more it's which we little for bit primarily in crores

Sure. it you investment once would come Do down And are that in drastically through foresee the down come cycle digital the and coming down. can come quarters? we will in

will in The and activities. future, we it investment replace be more in will manual invest digital in -- the will

base the down. will So expense overall, go

Jpmorgan. from question Next from Neha is the of Manpuria line

next this is do is digital more enough for growth have we of the years? the sustain think a first My been inching higher the the Do you would in operating this about just level SG&A the I of two the question, at products you at INRX,XXX we've How to spend, quarters, -- as I pace in last up try planned because going invest crores. up which look or be the forward? increase continuation look two to think the we should costs. launch that If

it? have you want take Do done to it? We

a it I Yes, think risk. take

So yes.

Yes.

know, primarily and gone products the The So is which prioritizing the of One the compared G&A digitalization factors. costs for the we the From the SG&A few make to investment and markets. supplies. And is can freight all the filing because a we're hand. we quarter last higher supply availability expense you levers a to are impact, on of we another, the behind last product as quarters, are worse across X up the the the our are in sales X flattish as impact also clearly COVID and driven hand investment It are slightly we And of full that to productivity is prioritizing has on and year, percentage of by higher, year. fluctuations. you second costs. making because that driving that increase is other reason expect are ratio one

And line. we the are also this actually impact impacts of know, very uncertain now. you in COVID giving right As times

say enter higher of I as to This investments will can shape to get see We So of be the is that has forward. productivity. going this digitalization, can see think, by forward, as is, some we would it expect I in also going going offset mentioned. we

What give Okay. Understood. the this the disruption? in could in if Erez, quarter, market like growth led disruption color some you And to your quarter-on-quarter this some comment, Russia on you destocking? that? seeing to opening mentioned led about which the And was something one-off

it share? question. you market hear mentioned That not was I sorry, the you Can quarter-on-quarter fully, repeat, could

think comments, fourth Russia, of impact the market. opening quarter Yes, because or slowdown I some in you disruption for your the mentioned the in in

give you some color could if So that? on

situation the relatively from of It's than as customers those well in low as financial Yes, was anticipated. than the less and probably usual this customers less season. demand quarter

do seasonal, I our products period see related primarily was As are you a not know, very see for quality time. this and something that as of this issue. that that I to as is

Morgan question Sameer is Stanley. Baisiwala next of from line The from the

the the question which start manufacturers you giving first that can the local think supply What's you're that And you you the will when do think contracted on time for Sputnik. Erez, India? million supplies? to XX doses within frame

Yes. Thank you.

first plan hopefully, and manufacturers, And by I will -- only now Indian from those that come these July, maybe with If the it close, course, But August quantities the at and Russia. on quantities deal anticipate in qualifications months. So supply is between to of bridging August, within studies, meet from least anticipation. and the the can If et depends, this be the will sites this of the is XX the primary cetera. the September. ability we

is X And the on Erez, is Excellent. powder. question, products. second U.S. One XXX-milligram the

X this pending think launched is I you X but forms, approval. the other FDA

this you it when on. So can do sort when the second launch? What's approved? have And And for see And supply is do of is you outlook the smooth holding you API? a of back? getting think

Yes.

if the the second and next. first give believe the with shortage will a you one, me, faced don't can I status can we of So supply. Amit, launch it. of in the second, going within indeed, details it ever to take we a Bear recall because it, you I are we that that of the

mg XXX Yes. sachet, And one, the on this first expect in we year. it sometime

Amit. broad, right, That's Okay.

X in it or expect. expected of the next is maybe X during quarters, not HX No, we year, but

Okay. your as said, And API you with in couple it something I a point would supply? it would on the if a about said supply? but be the Or you limited launch next smooth with months, be of you it missed supply,

supply. good It's

Excellent.

And about So the with FDA. question, may. sir, X last your if with filings XX formation, I that's your pending

specialty them of kind Are X kind Or branded are NDAs. these of of generic these So are product? products?

These a segment. in products, having are of we product like generic, specialty not more were generate which products, proprietary the

XXX(b)(X) basically to product generic cycle out. are You

The the Capital. next is line from AMBIT Nikhil of from question Mathur

much to products? with injectables, past have understand work with why Sir, on recent with. injectable launched Dr. collaboration manager is wanted have Pharma products having now capacity Reddy's in the I to contract company still the around invested does my so question that you business the investable

I can answer that.

dedicated So facilities, we which have. I gland to. And line dedicated require a the don't has think PMS

So we're that capacity. using

specialized require Insulins,, between of is oncology dedicated these capacity facilities. multipurpose. Our all and

Okay. And hence, profit year think in time share X we be Reddy's, won't and to it years' Dr. products, such need products. frame on such I will X or possible,

that? question. the I repeat What was didn't question? Can understand the you

Is My looking the question thing. time in this capabilities space. is company establish that to years'

doesn't there, positives have in before company manufacturing. contract that the future, to are profit So whatever share

everything we opportunities be always And I ever we do There through create think that through Dr. will many don't will partnerships. will has in-house. say Reddy's to a value gained partnerships. lot

So will do everything I will say in-house. not that we

we Of will that were volume, everything we course, not where a business will but is do there that, do the there capability in say case in-house.

Okay.

you see business that as sometime in subsidies more a enter of down any space. an business one line? plans question. of And quite Dr. Reddy's heavily Okay. invested just last generic U.S. the the as for Do to opportunity well facilities that have Those are because ambitions couple

products. You respiratory talked about

respiratory products, inhaltion products? The

us, Yes. what inhalation. we'll future we right But lot in investing at time. It's big this know it's something now, the are a a for don't we not space in do but not

in would reason any investing you see sir, the… not And why

…limitations of find clear we'll the areas. we crowded. very many areas in also, And becoming time

The next Ranvir line question is of from from the Sunidhi Singh Securities.

question relates Sputnik. to My again that

ourselves Or understand which has the start is even the or price consignment for can been get So it will redetermined? the will India, to price if you in the just would imported same? manufactured right price be freshed wanted remain manufacturing or now

I market. imported you price This and price to the to cheaper manufacturers, able product. is that is be we a hope it's related And approved the an contract have a the when, will will for to approval -- if offer

distribution Okay. products Further second agreement with a through again RIDF And these or will them. distributed manufactured be all have Sputnik. question, on with has And manufacturing separate X will a agreement got players. they you

from will those rights this they course, the At happen distribution. have with contractors. of stage, that, are all we our have vaccines, and million RIDF and discuss after we XXX all first What these the to working counties. agree of for will For

last the one, can. And Okay. if I

just called it. yesterday licensing wanted You news understand more details So we entail for deal the that to product therapy saw on your

what what can it cater outlook? we expect the So market of this? from What prospect is actually will kind to and

as. take it will I

but going an we therapy, is it big licensing as small is is presence therapy. explore as molecules in So biologics. of a stages in It's in oncology this cell have a well a area we our development be because product. strong want with the to partner. It's to niche It early not

Indian up skills are getting to in the therapy. process, of to the And affordable pick this patients. offer cell automotive into We an

have have cells very facility is Reddy's. we through in therapies will available Indian new which that. We affordable it to the and development in the will too the them patients. a entry to clinical and that an go to be Dr. And what space, It's then will early cell to area, a but predict margin prices. our but make and objective -- of which key this take them all patients because to convert at all this a into therapeutic into CAR-Ts to At time, is is administer

in India How cell currently? therapy how But is many products? market

to not available Indians. There is it no is today, today. Whereas market

to to have overseas this get We go about done.

Sachs. The Shyam next from from Srinivasan line of question Goldman the is

you the ramp a that and as apply supplies should the Just will And the vaccines on role given which to you thought then is well? clarification says local central it I as that said up private. government that When there rule and again. supplies Would manufactured. locally state to locally a think XX% is I manufactured largely start. manufacturers the was of XX% be

applicable think to day, stand, they are could domestic the these can you rules it I evolving every but see. as be as manufacturer,

right us the it's and what that developed RDIF ease contracts the predict happen. companies. So medicines. But hard for But for also in next local then signed months, when exactly about Indian few Russia supply rule manufactured there that you're with will has are and to we

the us So see how But to evolves. we we'll to situation whatever mandates government the will have do do.

linking V. Got Sputnik opportunity on export it. the And just a question for

-- payers and we're the a larger export dealing opportunity, constraints be could our We what around the local, be think markets. the emerging in to opportunity Given different presence going with. much given that

for of for it. countries have several I'll it. those X and a that engagement an was think, I do that take have we to route. in export, Russia I'll out with It other markets see made is product, the we routes it other those we and in opportunity discussion take

is potential will at fulfill for in hub concluded that that this what needed is for And India of additional the a quantity a export, be also big but portion And Sputnik in As therefore, will for the was India stage, discussions. this in intent also not is this Russia. a it's capacity future. for be

business. And the is looking we to And largely growth. erosion. question seen price it. the good Got on seems growth, press seeing are volume-led last We've PSAI it release, and suggest it's the at

'XX? good? half of API first what a is continuing? do the PSPI, and are capacity So so last driving for volume saw the we of we development? demand -- from that the sustainability and think which makes fiscal this this in Or you actually how it's And what's year is in inventory-led the

Yes.

especially relevant think business right the giving execution order provide in drivers cost. to on end our main is course, I in good the products in of service what So the with the time the the a right

So the it's in we primarily on share, which by products those this focusing is drivers. can driven main have market a and global

In as the States. by some terms primarily of Asia, in driven geography, China and products as well United Japan, it's Korea

quarters the pickup will fluctuate. that of and because those soft, will there will be for will the it look but quarters the by future, the it -- it's grow, There primarily customers. inventory will the of be As it up be API that will look timing

API quarter-on-quarter So going more be of will our kind profitable. But and grow to it's not necessarily. linear a a become business absolutely,

next the line of Dalal CLSA. from Alok is The question from

filing? Any updates on Copaxone and

We still are we got its CRL, recent and working the on solution.

Erez? for is This products, both

You asked Sorry. question? about Copaxone, season. the What the next was

feedback. We are for go still Yes, waiting ahead. the

and? So update I asking about an was on Copaxone

Yes, yes.

So in submitted waiting the January. I CRL case feedback, come we is the milestone submission. the on in response that which are are the likely to said we working Copaxone And December, This gave the we in of, have still and you. for is -- CRL we

by October. we get So it will

'XX Okay. Will be these launches? FY

of Unlikely them. for both

capital how the will And part and this? And about should next be years? acquisitions X Okay. last important how of allocation we think strategy second a X, question,

how and last the Sorry, sentence? part of the

approach? be acquisitions of part growth, a will important this or How inorganic

Yes.

good big very capacity. sheet do we a very, So balance financial have relatively a and

take are suitable past, to opportunities we we the still we deal in find Having looking be that the this all for of -- is said are the strategy. will our philosophy not that, for the time. this keen the a we So said I And company.

in shopping story. not are a We

focus well. certain Primarily, focus globally, but brands, want. It's we go in products, the be to going main after are We for be that assets will capabilities India the that us markets. will fit

will higher than CapEx 'XX? be And FY Okay.

will we had around through. bit will take COVID-related FY do. that CapEx maybe restrictions of go Depends, around a if -- be give will higher that in able that be The are I'm activities same the same or we the and assuming that neighborhood be to the will course, numbers, everything we 'XX. on

last the that hand to Amit now closing Thank conference constraints, time Agarwal you. for due Ladies was I to comments. gentlemen, question. over and the Mr.

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

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