Hey everyone, and a very warm welcome to the investor call of Sanofi India Limited. My name is Radhika Shah, and I'm the company secretary and the head of legal for Sanofi India Limited. I have with me Mr. Rodolfo Hrosz , Managing Director, Mr. Rachid Ayari, the Whole-time Director and CFO of Sanofi, and Himanshu, General Manager of consumer healthcare business. This year I'm new here.
Yeah. Good morning everyone. Thank you for joining the call. I look forward to going over the results of the quarter and the calendar year with you, as well as taking your questions. But before that, I'm thrilled to introduce Mr. Himanshu Bakshi, General Manager of Consumer Healthcare Business. Himanshu has joined Sanofi with effect from 15th of January, 2024, to lead the consumer healthcare business and will transition to be appointed as the Managing Director for Sanofi Consumer Healthcare India Limited, plus with the merger subject, of course, to the applicable approvals. Over to you, Himanshu, for your brief introduction of yourself.
Good morning everyone, and thank you, Rodolfo, for your warm words. Really delighted to be a part of this exciting business. Critical point right now is gonna drive, you know, growth and opportunities in the future. And the same goes for the consumer healthcare business. I think with the kind of potential that we have, the immense opportunity that India brings with it, we have great products, iconic brands with great science, and there's no reason why, you know, we won't be tapping this immense potential, you know, in a big way. So really looking forward to this exciting journey and a journey of growth, a journey of potential, a journey of success.
Thank you, Himanshu. Rachid, would you like to greet everyone?
Good morning everyone.
Thank you. Before we begin this investor call, two important announcements. First, please note that the proceedings of the meetings are being recorded. Second, a standard disclaimer that certain statements may be forward-looking. The actual results may be affected by many factors that may be different from what is being envisaged in terms of future performance and outlook. Moving on to the agenda of this call, in today's call we will be talking about the performance of the company for the quarter and for the financial year 2023. Thereafter, the management will take questions from investors and participants. The Q&A is likely will end at 12:30 P.M. sharp. All investors and participants are requested to keep their questions brief and avoid repetition. I now hand over the call to Rodolfo and Rachid to take us through the presentation.
All right. Thank you, Radhika. So, if we can move to the first page, we have prepared a brief presentation, whereby I'm gonna give you all a brief, overall update on the status of the business and the progress versus our strategy. Following those initial slides, Rachid is going to come in and give and share with us some highlights on our financials for the quarter and for the calendar year, right? So to begin with, if we can click to the next slide, please. The next one. Yeah. So I begin with this one, which is the slide which you are all familiar with. This is the summary of the plan that we unveiled by the end of 2022, which is the North Star, what we do in Sanofi India Limited, since then.
This is the India for India plan for Sanofi with its four pillars. As a reminder, four pillars are the focus on diabetes and consumer healthcare, focus also on end-to-end innovation, and another the last pillar, the go-to-market transformation, as the key enablers for the success and future growth of the business in India. So if you click again, I have a few more updates on that, each one of these pillars that I wanna share with you. On the first pillar, we have successfully moved to the One Diabetes Business Unit, where we brought all the products that pertain to the category of anti-diabetes, and under the same roof with the same group of people and same leadership, specialized in diabetes.
By doing that, we have been able to expand reach and strengthen the positioning of all of our brands, in the in looking backwards forward. We have also deployed a disease awareness campaign, a diabetes awareness campaign, targeting the public, the general public, bringing with the intention of bringing the important non-communicable disease awareness up, in an attempt to increase also the number of people that have the condition and get the right treatment. That has been a successful first year of that campaign, where we have reached more than 200 million people, more than 200 million individuals hit by this campaign over the course of 2023.
Lantus, as you know, within that diabetes business unit faced an NLEM price reduction, which was largely mitigated by the rest of the portfolio as you've seen in the financial figures when we talk about them. We have begun to accelerate the volume of Lantus following that price reduction. Local innovation on diabetes has advanced into badge. A localization of one of our insulins is already well advanced. We're planning to its introduction soon. Cetapin as another extension of a local brand that is another local extension of one of our brands that is also planned for the end of Q1. And then as part of our global innovation program, Soliqua comes to market by the end of Q1, beginning of Q2. So a business that has already been transformed with a significant pipeline added to it.
On the consumer healthcare business, as you know, we wanted to be able to double down on Allegra, extend, and deepen our consumer understanding and shape the OTC policy in the Indian market. To that end, we decided for the CHC merger, which is on track for Q2 execution with a board already approved, as you know. Shareholders also approved by December 18th, as you know, and we're now following the other requirements, required approvals along the process. While the organization readiness for the separation is well advanced. We just got to know Himanshu, part of that readiness for the separation that I just mentioned.
On the third pillar, end-to-end innovation, we have advanced with a local and global pipeline with seven launches, which I'm gonna be talking a little more about in the following slides, which also includes the localization of Insuman, one of our formerly imported insulins that is now being used in India. We have continued to analyze the potential of partnerships for reach extension on our established products.
On the fourth column, we have successfully gone through a reduction of overlaps and increased synergies and agility in the organization, and by looking at the resource allocation and thoroughly reviewing it, it resulted in a INR 36 crore OPEX savings in Q3 of 2023, coming from a reduction of 8 business units to 3 business units, the removal of 1 layer of management from the organization, and the deploy within all that, as well as the deployment of the trade organization and the piloting of 4 digital go-to-market organizations that will run in 2023. So good advancement on all four pillars of India for India. If I go to the next slide, please, I'll show you a little more on innovation as I mentioned before. So back in October 2023, we brought to market Frisium Suspension.
Then in December 2023, we brought to market Samoxabam and Cardace. All three of them are line extension of the existing brand in our portfolio today. Now for the diabetes portfolio, the activity and the innovation comes in this year with Soliqua, Insuman, and Sertepine hitting the market as per my mention before. And CHC is well planned for the introduction of Allegra by 2025. So you can see consistent progress on the four pillars of India for India, leading to improving results that I'm gonna ask Rachid to mention and discuss with us next. Rachid, over to you.
Thank you, Rodolfo. Next slide, please. So a good performance for the quarter and the full year 2023. In the left side, so we have the quarter, and the right side, so we have the full year. Before starting to explain a bit the results, I want to explain a bit the slides. So we tried to eliminate any NLEM price impact for Lantus in India. So we have comparable data. And from profit before tax, we exclude the development of Soliqua. So good result for the quarter again. So we're at INR 525 crore versus INR 500 crore in 2022, 12.6% growth in rupees, and 10.6% in comparable when we exclude the NLEM price impact. In terms of profit before tax, so good trend as well, plus 5.6% excluding the Soliqua development.
Going to the full year results, we have good results in terms of sales. 5.4% growth in comparable basis and 1.2% in Rupees. We in terms of export, which is not shown here, have good results as well, +27%, which is showing a steady growth from one year to another. Double-digit growth for profit before tax, excluding the development. And this result is a mix between the different lines. We have a recommendation to better mix the development of Soframycin. We have better prices for the IPR that were negotiated for 2023, in addition to one of accrued books last year for the NLEM price to a certain level. And we have favorable foreign exchange rate for the export.
We, as mentioned by Rodolfo, have, let's say, good trend for the OPEX, operating expenses with -6%, which is showing that, you know, the India for India strategy is already reflected, starting, you know, this year. If we can move to the next, please. Yeah. I think this slide, you know, so as you know that we cannot talk about the future, but the actual number, it's a good indicator. So we have, again, a steady improvement from one quarter to another, for the operating profit. So as we can see in terms of value and in absolute percentage as well. So for quarter one, moving from 28%-32%, Q2 24%-26%, Q3 27%-31%, and the last quarter, 27%-28%. Can we move to the next, please?
So here we want to just share a bit, you know, the trend in CAGR from 2018 to 2023. We see in the left side the domestic sales for the retail business, excluding the demerger, we are at CAGR of 5.9%. And in the right side, so in the institutional, so we are at 3.6% CAGR. The most important part, I think, is in the left side regarding the profit before tax, where we see significant increase from one year to another, moving from 18%, 24%, and 20%, 26%. And finally, in 2023, we are at 31% thanks to the strategy that was put in place since then. Regarding, I think, the dividend part is an important one.
So, for this year, so we see the trend from 2018, 2023, versus last year where we distributed the payout was 85%. This year, the payout will be 65%. And this is explained mainly by the working capital where we build stock at the end of this year, piling stock just, you know, to avoid any impact for next year, which is related to the change in the address of our warehouse. So then it goes to license approval again and the blackout period. So to avoid any impact for the business, we distribute 65% within the cash available in the company. So, that's it from my side. Thank you.
Thank you. Thank you, Rodolfo and Rachid, again, for taking us to the presentation. Now we will move to the Q&A session. In this session, we will respond, a reminder, within the boundaries of our internal policies and regulations. We will restrict our responses to clarify on matters which are available only in the public domain, either through our annual report, quarterly financial statements, and other disclosures. There are other granular aspects such as product-wise, sales-wise, therapy-wise, sales margins, profitability, which we consider confidential, and we will not be able to comment on these topics. We also do not provide any earnings guidance, and hence, we will not be able to respond to queries on future business, future product launches, or margins of profitability and CapEx. Moving on, as we had mentioned, we will be taking the questions in the sequence of the registration of the participants.
If there are multiple registrations, we will take questions from the first participant and giving others the opportunity, after the first question has been raised. In the interest of time, please and to give equal opportunity to all, please keep the questions limited to one or two. Handing over to Cora to allow the participants to ask questions, please.
Thank you very much. Ladies and gentlemen, we will now begin the question and answer session. Participants who wish to ask a question over the video presentation may click on the video question button on your screen. Please allow access to your microphone and camera and click on Join. The operator will announce your name, after which you'll be requested to unmute yourself. Participants who wish to ask a question via phone may please press star and one on your touchtone telephone. You're requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the questions are assembled. We have a first question from the line of Aditya. Please go ahead. Kindly unmute your line. Aditya? Give me a moment, please. Ms. Aditya, can you please unmute and go ahead with your question?
Since there is no response, we'll take a next question from Rishikesh Patore. Please go ahead. Give me a moment, please. Mr. Patore? Mr. Rishikesh Patore? Can you please go ahead with your question?
Can you hear me? Yes, Rishikesh. Go ahead. I just wanted a few clarifications on the progress of new launches and timelines for the three going on.
Okay. Rodolfo, you wanna take that?
Yeah. I'll take that. Thank you, Mr. Rishikesh Patore, for the question. We have advanced quite a bit with our pipeline, right? So from the beginning of the deployment of India for India, as a plan in India, we have now got to seven projects that are lined up. I mentioned them before, so I'm not able to give you details in terms of figures from the launches, but I can tell because those will be forward, written statements. But I can tell you that they have been carefully selected to do one of two things. One, to leverage the strong equity of the existing brands that are already in the market. That is the case for the line extensions that I have mentioned before.
If it's a new launch of a new brand, then it enters into a large and in-depth segment where we believe that we have the right to win. That is the case, mainly with the launch of Soliqua, which is upcoming soon. We believe it can be a very significant impact. We can't speak about numbers, for the limitations of this call, but we're very happy with the fact that we have been able to create a pipeline with seven launches. Some of those launches leverage the strong equity of existing brands and some others really tap into very large opportunities in the marketplace where we have the right to win.
Thank you, Rodolfo. We move to the next question. Cora, please?
Yes. We have our next question from the line of Abdulkader Puranwala from ICICI Securities. Please go ahead.
Yeah. Hello. Am I audible?
Yes, Abdul. Go ahead.
Yeah. Hi. Thank you for the opportunity. So a couple of questions. So starting with your comments on integrating the entire diabetes portfolio under one roof, so could you please elaborate as to? Sorry? Yeah. Am I audible?
Yeah. We can't hear you. Please go ahead. Yes, yes, you are.
Yeah. So, my first question was pertaining to the comments on regrouping the diabetes portfolio under one roof. So, you know, could you please specify as to what are the synergies, you know, which you have prevailed by doing that in terms of, you know, growth for your key brands? As well as, right now, what would be the overall contribution of the diabetes brands to the overall top line of the company?
Yeah. So, just, you know, thank you for the question again. So the importance of bringing diabetes under one roof is really to be able to synergize all the efforts that we're making that category of products. Before, we had anti-diabetic products across two different business units in the company where we replicated many of the efforts in terms of management of the portfolio, strategy, direction given to the field. And also even the actual field representatives or reps in the field would have, you know, very separate portfolios. So now we have them more integrated, and then it can benefit to the healthcare professional with whom we interact. Because again, the healthcare professionals see the therapy as one therapy only.
By providing them a more unified representation on the line on the side of Sanofi, we become more customer-centric. We become more HCP-centric, less focused on our own portfolio division and scaling, and more focused on what makes sense for the HCP or HCPs with whom we interact. So that has proven to be a successful realignment, allowing for us to become more customer-centric and also expand reach by not having two teams, more than two teams, in fact, going to the doctors with the portfolio, by having a reduced number of people connecting with each single doctor, we can get to more doctors. We can get to more HCPs. And that is beneficial to the business. So that's the first part. Second part is about, I think your question is the relevance of our diabetes.
Oral diabetes is a very relevant part of the portfolio. In India, this is it's still a very significant category, with a large application. We have important brands in that portfolio, with Amaryl being, you know, clearly the strongest of the brands that we have in the portfolio. It is important to us that oral diabetes portfolio because it caters to doctors and to HCPs and patients that are in the journey of treatment before they get to insulin. So, insulin being the ultimate, worst kind of treatment for diabetes, it is important to accompany the patient journey and the HCP journey all the way from the moment of diagnosis, the beginning of oral diabetes, and then the migration to insulin.
In fact, we are the largest company in India that does that, that integrates our diabetes and insulin portfolio in the same company. So we think it is synergistic from that perspective so that we can follow the patient and HCP journey all the way.
Yes. I think that was just a complete in terms of contribution on the sales. So, the diabetes should be between 40%-43%. Understood, sir. So I have a couple of follow-on questions as well. So for a short while, I mean, you know, could you please help us understand how your consumer portfolio has performed in CY23 in terms of, you know, the overall revenue growth or some return comments on the margin side, you know, would be a little helpful?
Rishikesh, do you want to take, start with that one? Okay. You know, we've had a decent quarter when we look at quarter four. Of course, there were some headwinds when it comes to the overall, you know, category performance. But the good news is that all our categories, all our brands continue to gain share in the market. I think that's something which is in line with what we really want to do. Our key brands like Allegra, continue to do very well in terms of market share gain. Our brand like Dulcoflex, Depura, also are gaining significantly when it comes to the market. So overall performance in terms of the external, you know, performance continues to be very strong, and continues to be strong even in the month of January.
Okay. Thank you, Mike. Just a final one, if I may. So, just one more question on the, on the accounting side. So if you look at your working capital cycle, the inventory for the quarter or, you know, for the year has gone up significantly. So is there any, you know, is there any, you know, RM inventory what you're specifically stocking, or, you know, what is the reason for this increase?
Yeah. Is this still? Did you get the question?
Yes. Yes. Yeah, yeah, yeah.
Okay.
Yeah. Yeah. Thank you for the question. So, as I mentioned in the previous slide, you know, when I was talking about the payout regarding the dividend that we are paying 65% for this year, which is impacted mainly by the inventory, okay? So, especially for 2024, we are changing the address of the principal warehouse that we have. And once we ask for the approval, it's gonna take a bit time for the approval of the license. So that's why we made a kind of stockpiling for end of 2023 to avoid any impact in the business for the next year. So this is the major explanation regarding the inventory that we built at the end of 2023. Okay. So is it specifically?
Mr. Puranwala?
Sorry?
Yeah. Please go ahead.
Yeah. So, so is this specifically to some particular brands which you are importing, or is it a normal RM, you know, that, stocking what you're doing?
This is, it's related to the main. It's all the stock, so we are filing here, yeah. So as we are changing the address, then the license needs to be updated there.
It means now only the imported products update. Of course, there are certain other imported RMs as well, but it's mostly the imported finished goods.
Yeah. We mainly Clexane, Insulin, and Targocid, to be more precise. All right. Got it. Thank you.
Thank you.
Thank you. We have a next question from Varun Bang from Bryanston Investments. Please go ahead.
Hello?
Yes, sorry. We can hear you.
My first question is on insulin. How is the prescription increasing in the smaller towns and rural areas for insulin, and what is our approach to tap that market?
All right. So, thank you for the question. Insulin prescriptions are, you know, a little bit our insulin prescriptions, right? We have prescriptions of our product. We have increased, significantly because of after NLEM implementation in Lantus, we saw that mainly HCPs opted for Lantus, more than we were, doing so more than we were doing before. With the price reduction of Lantus, Lantus became even more, of a, a brand of choice in terms of prescription for doctors as we initiate, insulin, for, for patients. So we saw an increase, a significant increase in our, share of, of prescriptions since the implementation of NLEM for Lantus. Prescriptions for insulin were together in the year 2023.
They were likely impacted by the loss of exclusivity of certain oral anti-diabetic products. So some oral anti-diabetic products went into loss of exclusivity. Therefore, reducing the price of those products, and therefore causing a certain delay in further delay in the insulinization of patients in India. That is a one-off effect for the months that followed that loss of exclusivity. But in total, it had an impact in terms of number of insulin prescriptions that we saw in the market. In our estimate, that has impacted the overall market even if for our brand, our share of prescriptions increased significantly.
Because at the same time that the whole pie was being impacted by the loss of exclusivity on oral anti-diabetic, you know, that we also had this price reduction on Lantus due to NLEM, which resulted in us gaining significant share in Lantus in the prescriptions of insulin.
Okay. And you have stated that you're looking for partnerships to expand our reach in tier-two and tier-three cities and also in the rural areas. What would you look for in any potential partner? And from long-term perspective, won't it make more sense to develop the reach organically? Can you share your thoughts?
Yes. We think the same way along the lines of your question. I think we think that the reach for the diabetes portfolio would expand organically. Insulin is the central part of that portfolio. And insulin is significantly less dependent on tier two and tier three cities with lots of opportunities, of course, in tier two and tier three cities but also lots of opportunities in tier one. But that lower dependency on tier two and tier three cities makes it more interesting and more attractive for an organic reach expansion. So currently, the plan as you see in Europe or India isn't to pursue partnerships for the extension of reach of the diabetes portfolio, not at the moment. So, your comment is in alignment with the way we think about it.
Okay. And when you talk about Sanofi India for India, we have also talked about centering our local innovation capabilities. So can you share what kind of R&D capabilities do you currently have in India, and how do you look to build it further? And secondly, would the local innovation team be largely focusing on line extensions in general medicine segments? Can you share some information?
Yeah. Yeah. I shared with you the pipeline, right, our innovation pipeline. You can see there all the products that we are launching. There are some line extensions. But there are some completely new launches as well, right? So biggest example of that being, of course, Soliqua, which taps into an entirely new segment of business for us coming up end of Q1, beginning of Q2, right? Now, in terms of our infrastructure in R&D, we're very lucky to have one of the most sophisticated R&D centers of the Sanofi Group located in the world within our Goa site. That is a capability that we can and have leverage in. We can continue to leverage.
We also have a network of contract manufacturing organizations with whom we have already worked for a number of years, both for the domestic market and for the export market. So these CMOs are completely validated and vetted by the quality and supply chain organizations in our company. Then they can also be leveraged as resources for innovation in India. So I think that more than building more capability in R&D for Sanofi India, the challenge for us is really to leverage the capability that we already have. We have significant capability already installed.
But the big challenge in the exercise for us is to make full leverage of those resources and those capabilities that we already have, which is what is happening as we build the pipeline and as we built the pipeline that I have shared with you before.
One last question. What is the share of exports in CY23? And in previous forums, we've talked about taking advantage of India's low-cost, local low-cost advantage to grow export business. How do we look at expanding export business, and where does export business come in the list of priorities?
Yeah. I'll hand that over to Rachid, who's very close to the topic and passionate about the topic.
Yes. Thank you, Rodolfo. So the current export is around 18%-20%, let's say. We are looking for a different geographic area where we can use the manufacturing in India. As you mentioned it clearly, thanks to the reduced cost and the quality. As we see that in terms of quality, the CMOs or our Goa sites are one of the highest ones. We are looking for export from to Russia to Central Asia. And we continue with the current market that we are supplying from Goa right now. So the volume that we are looking for is for sure will allow in the future to reduce cost as long as the capacity are increasing in Goa sites.
Thank you for answering my question, and again, thank you for more questions. Thank you.
Thank you.
Thank you.
Thank you.
I now request Mikhil . from BNK Securities to go ahead with his question. Mr. Mikhil . from BNK Securities. Kindly unmute and go ahead with your question.
Hi. All my questions have been answered. Thank you very much.
Thank you.
Thank you. We have our next question from Girish Bakru. Please go ahead.
Yeah. Hi. Thanks for the question. Just wanted to check on Toujeo. Non-allergic prescriptions. What is the split between Lantus and Toujeo right now?
Your question is split between the prescriptions of Lantus and Toujeo?
Yeah.
Okay. So, let me go just quickly check on that. We're getting to it, 90% and 80%.
And, I mean, after this price reduction in Lantus, are you seeing an impact on Toujeo growth? What's the broad thought process here, how this brand is going to grow?
The brand has grown very fast. It's a second-generation basal insulin. And we've seen that the market has appetite for second-generation, both in basal and also in the premium segment, right? So Lantus continues to grow in the wake of the NLEM price reduction. And Toujeo continues to grow on the wave of migration to second-generation and more sophisticated basal insulin. So both have a very promising perspective. And in fact, both are performing well in their segment.
Thank you. And just, yeah, I know you don't want to give a guidance, but given this year had a lot of impact from the price reduction, next year, what is your broad sense how the changing market will play out for you?
Well, I think that the next year we'll continue to see strong growth of Toujeo as it has been the case in the many years, in the several years behind us. So we see the momentum continuing into the future given that trend to second-generation basal that continues. We see that we believe that Lantus will benefit from this price reduction with continued volume increase. As the difference between Lantus and its competitors has now shrunk to close to zero, the strength of the brand will pull more market share for Lantus as we go forward. So we see it positively and very promising for both firms.
What's it going to put a number here, yeah?
No. We got none of the good news for the, you know, green statement. But I can give you a direction. Directionally, that's what we are optimistic about most times.
All right. For we can communicate strategic growth or,
Sorry. For the current, for the next coming up, we can't commit any numbers. We will not be able to indicate any number. But like Rodolfo mentioned, we will be in a position to indicate the trend.
Yes. Thank you. Sorry. You were saying Q4. You can comment? How was Q4 for growth of Lantus?
Q4, we have very positive signals related to Lantus. And the growth for the, let's say, in volume, it's around 5%, which is showing good trend for the next year, as well, based on what we see. But that's what might happen next year, yes.
Sure. Very helpful. Just last one on Soliqua. The combination of insulin GLP-1, do we have any product in India, or is this the first one that will come? And broadly, with your experience of Soliqua and other markets, how do you see this benefit with the other combinations which we have in diabetes?
Yeah. Soliqua is a unique product. There is no similar product in India. But it is a product that cater to a very specific segment of the market, which is the segment where HCP prescribes premium insulin to certain patients in certain conditions. And that segment of premium insulin in India is as good as the segment of basal insulin. We currently compete only in the basal insulin with Lantus and Toujeo. Soliqua comes into the premium segment, which is equivalent in size and with comparable growth rate. Now, it comes into that market with being a unique product with clear points of differentiation, right?
So it is a product that offers patients and HCPs fewer pricks, fewer number of injections versus the GLP product, a product that offers lower risk of hyperglycemia, and a product that offers patients an advantage in terms of risk management while current products add some weight to patients in general. Our product has an effect of a slight reduction in this. So, with its profile and superior benefit, we believe that Soliqua's place is to make it become a very successful player in the premium segment. Now, it is difficult to compare that and inappropriate to compare it with other markets with HCP because with HCP, right?
Yes.
Because, because few markets in the world have a developed premium category like we do in, in India. Few other markets like China also have, a segment of that. Most markets, globally don't have a premium developed premium category. The reason is roots back to the diet, our diet of, carb-loaded. It roots back to the delay in insulinization. It takes longer to put patients on insulin. And then when we do, we end up putting them in, in premium. So there's different reasons why you can't compare that, you can't compare it to other to many markets and other markets in the in the world in general. But comparing Soliqua to the competitors with, with, with whom it'll be, playing, in the in the mar in the market, it is very strong in this position.
Is there any IP on Soliqua in there?
What do you mean? IP?
Is there a patent on?
on the Soliqua, I think Soliqua is spaced. Yes.
All right. Thank you, Elton. Thank you so much.
The answer is no. No. I don't know. I'm getting a.
So there is no patent, but it is a global product.
Yeah. Thank you. Thank you so much.
Thank you. We'll take our audio question from the line of Drugan Parijah from ASK Investment Managers. Please go ahead.
Yes. Good morning. I hope I'm audible.
You're not very clear, sir.
Yes.
Can you use your handset mode, please?
Yeah. I am on handset. Is this better? Can you hear me now?
No, we can't hear you. Your volume is very low.
Is this better? Any better?
Yes.
All right.
Go ahead.
My first question is on the share of revenue which comes under NLEM after Lantus and Freesium, you know, undergoing NLEM expansion last year. What is the total share of sales in India which is under NLEM?
Yeah. It's around, let's say, 39%.
39? Is that what you're saying?
Yes. 39.
Okay. Thank you. A second.
39%.
Okay. All right. The reason I ask that is do you feel that, you know, with the WPI being virtually nil going into the next calendar year, it might have some impact on the domestic sales growth because that's a very substantial number which is under NLEM where you get WPI-linked price increase?
Yeah. For next year, the WPI is not significant. So there is maybe no impact.
Okay. Is it possible to, to give the sales and, profits for the consumer OTC business for, for the bygone year which is, CY 2023, financial year 2023?
We've not disclosed the segmented results, so we will not be able to give you separate numbers to see if it is.
Okay. And you also indicated that in gross margins, there's an impact of favorable movements of the foreign currencies. Can you enumerate the scale of this impact on gross margins?
It's related, mainly to the export.
Yeah. What, what would have been the contribution financially of that?
We can disclose, Radhika or?
No, that is not very clear in terms of the question. Can you repeat?
My question is, what is the impact of currency-related gains on your gross margins or on your operating margins for the bygone year?
No. So as mentioned by Rachid, the forex gains are largely for exports. And we don't, indicate numbers in terms of the impact on gross margins.
All right. Is it possible to give some idea of, you know, the contribution that you would have received from the launch of new products in December and, I think, September of this year? You've launched a few new products, right? Samoxabam , Karmada.
Like I said, yes, Drugan, like I mentioned, we don't disclose product-wise sales. But the launches have been very recent. So it may not be significant as we have said to CIT.
All right.
We launched at mid of December. It's not so significant. We agree.
Okay. But since quite a—I mean, not all of them, but I presume some of them are line extensions, you know, is it the case that growth in these would also, you know, at the same time see some of the existing products sort of taper off because you know you will emphasize on the line extensions?
No, not NLEM. I don't think so. Forex only.
I was looking at the, actually, did you speak to Garsian? I'm, I'm sure he'll catch you.
No, his question was, since some of them are line extensions, the one launched in December, I think Samoxabam and Karmada, will they have any cannibalizing effect on our existing products to which we?
I didn't get the question. But we carefully select line extensions to tap into segments where we see growth potential, and where we're not playing. So line extensions is not just a very similar version of something that we already have. But they are typically the ones that are bringing to market. They extend the brand into segments where we are not present, therefore minimizing any cannibalization potential. Right.
And the last one, if I may, from my side, is, you know, you indicated the loss of exclusivity for some products in the diabetes franchise impacting Lantus growth. I presume it would also have impacted your Amaryl franchise growth. Any assessment you can give us of the impact on Amaryl from LOE on dapagliflozin or gliptins?
Again, we don't want to bring brand performance, right? But I can tell you that Amaryl is very strong, very solid, very solid performance in not shaking.
Right. And Insuman with local manufacturing, is it local manufacturing now that you're doing in Insuman? And is, is if that is so, do you see that helping your, your cost competence and, therefore, growth in the markets?
Can you repeat the question? What I was meaning background.
My question is, on Insuman, is it have I understood it correctly that Insuman is now localized for you?
Yes. We are localizing Insuman.
Yeah. So in that case, does it make you far more cost competitive? And therefore, you know, does it help your cause in growth of Insuman going forward?
Potentially, it would help. It potentially could give positive impact. Yeah.
Okay. Yeah. Thanks. I'll get back to Mikhil. Thanks for taking my questions.
Thank you. We have a next audio question from Fredrik Chaudhary from Green Portfolio. Please go ahead.
Yes. Hello, sir. I'm audible.
Well, not yes. Please go ahead.
Yeah. I have just one question. So currently, our exports are at around 18%-20% of our total top line. So I just wanted to understand how much percentage, from our Goa manufacturing plant currently goes to exports?
Sorry. If I understood your question correctly, you want to know the percentage of manufacturing in Goa?
Yeah. How much of that goes for exports?
Yeah. It's, yeah.
Yeah.
From Goa, we are exporting around 30%.
Can you also provide the, for the previous year, the same number? How much would that be?
Sorry. It's, it's not clear.
He wants to so we will get back to you on that. We don't have the number of.
Can you repeat again?
the number of the exports for the previous year, the comparable number for previous year.
Yeah. It's, it's similar. It's similar.
Similar.
Yeah. Okay. Similar. Okay. That's it, sir. Thank you.
Okay. I think, since we're already nearing time, that could probably be the last question. Please feel free to write in, if you have any other further questions. Thank you very much to all the participants for attending the call and patiently listening. Drugan, sir, you just want to do some closing remarks?
Thank you, Raj Verma. Thank you very much for joining the call, for your questions, and for the opportunity to clarify a few more elements of our business that, as we will tell you, look forward to getting together again in the next quarter.
Thank you, sir. Thank you, Boris. My pleasure. Ladies and gentlemen, we now conclude this session. You may now disconnect your lines. Thank you once again for joining. Are we done, Coris? Yes, ma'am. You can disconnect. Thank you.
Thank you, Rachid.
Okay. Thank you, guys.
Thanks.
Have a good day.