RDY - Earnings call transcript Q3 2022 | Dr. Reddy's Laboratories Limited

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Operator

Ladies and gentlemen, good day and welcome to Dr. Reddy's Q3 FY2022 Earnings Conference Call.

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

Amit Agarwal

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

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

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

Parag Agarwal

in of growth We cash flows. keeping Thank good another you, year-on-year Amit, EBITDA and and quarter in greetings margin, hope gaining all had healthy yet well. terms generating good to you are profits, I of and everyone. of vitamin performance revenues

in detail. a to the key more Let highlights manager the you me quarter for take bit

our [Indiscernible]. dollar rate for is the business. and basis at [Indiscernible] basis our margin flat of across over XX XX.X%, were on is which been profit unit a of driven all on And over The good in been for XX.X% $XXX year-on-year because and is emerging the impacted in income year, markets. spend over went an investments account this direct banks and products. has December continued proprietorship XXXX. growth recent of million, [Indiscernible] businesses quarter-on-quarter. [Indiscernible] base as the supported by and basis. a by quarter-on-quarter XX.XX, for today hard by for Consolidated decrease quarter XXXX out-licensing and line of on business in which India amounts that which grew on from business revenues respectively quarter most X%, the million, quarter That year-on-year, has revenue Gross U.S. base at growth, convenient increase XX.X% Year-on-year basis. our and But X% sequential for year-on-year a stock the for was the contribution of is sales on at gross of section, performance limited increased marketing rate previous of in our quarters X% activities and quarter. QX, increase margin and [Indiscernible] growth higher margin by higher Consolidated declined For with points global X% $XXX a of and end growth and XX, was Sequentially, to mission is by the are a translated had this to launches.

that the that during The activities margin Consequently, EBITDA X,XXX is XX% is increased charges, EBITDA new XXX% and has continued continue year-on-year XX.X%. The is our and to of profit products of Effective quarter-on-quarter. the U.S. in XX%. $XXX quarter-on-quarter. for is tracking million, target SG&A before growth, XX% this R&D The of closely by at is As EBITDA a is USD been for the normally a that a year-on-year the is present by and Rs exploration $XX XXX X markets. million, year-on-year. margin been across previous which expense decrease X% impairment a sales. percentage development tax spend and of our increased fiscal, for quarter for our of sale, X% XX Rs lower build points $XXX The and the months at growth crores, Adjusted our profits and tech is over X.X% declined the quarter is XX.X%. is XX.X% basis rate XX%, of at is quarter crores, by R&D at million, healthy and for has quarter, we XXX by the stood pipeline which year. our grew

in by stood at be capital Reported to XX, XX%. on The decreased by Rs in working million, is XXX which that for is gross, ETR collections. Operating growth, receivables $XX $XX against that XXXX. is aided to Profit XX% by Rs primarily normal USD higher growth decrease quarter of was a decrease September EPS on XXX our driven the net expect X.XX. for XXX the range repeat of quarter We for the million.

capital quarter generated a which crores, is we flow crores, a inflow now of is capital net Rs million. between this with December The of cash million Our free which of the investments $XX net X,XXX $XXX is have during as XXX quarter Consequently, XXX,XXX XXst, that $XXX XXXX. during million.

months. U.S. dollar to of business highlights. grand I next XXX.XX to form Rs RUBXXXX USD at million the through Australian the African dollar. Erez With to in XX.X key take in of at African Australian the around XX.X X.XX the request approximately ruble. hedges the million, to rate million flow South Rs of the us derivatives the X.XXXX cash million hedged dollar the $X.X and are of to XXX currency Rs the the dollar of largely now the South at of date this, maturing range Foreign to XX.X for rate XX rand,

Erez Israeli

growth I EBITDA margins and are any had trades. good benefit fee year year COVID-related our pleased or your A share hope closer Parag. key performance to And evening everyone. financial on both exposition are our our during each, you quarter while without the healthy. business. a to you, XX% Thank and to safe invest businesses. target for that of and family future to We've one-offs morning all good grown I'm we and and continue in our we across strong

We achieve headwinds of resilience. industry inspite the like this erosion higher This U.S. the level market, freight segment sustained across certain able level the commodity in and Generics have price costs. performance to the shows higher been increasing prices,

headwinds. such We to diversified have been external model a able business to build mitigate

We now also generated surplus, a invest which during enable cash the future significant are for us quarter, flow and will having growth. Netscape to cash

are business currencies. local these respective of The Let quarter. highlights the me numbers to take the reference for key these you sections and in

of America sales the quarter, Our with sequential business $XXX X%, million of recorded the of decline for EBITDA a generic quarter X%. growth North while

our some for of During the to continued recent [Indiscernible] we launch key market a including gain products, quarter, subjects. share of

seasonal has the products for And However, were sales products due few the key this entire the during variations of United some new of impacted sector. quarter. States and in been price for products our our case for to owing demand to launched

Europe recorded both year-over-year $ million Euros, was of Our sales XX and and business sequentially. largely flat

product quarter, Germany we and and one Ireland. each launched France During in four products new in the

market. fuel good to us QX, launching We this to are enable in growth return expecting which will during

market growth XX%. business a emerging strong of X,XXX rupees year-on-year recorded Our crores sales with of

constant a on on declined a the within in by decline the year-to-year of X% on However, XX% reduced by XX% markets, basis basis quarter-to-quarter currency. Russia the grew and emerging sequential business

products. QX COVID-related earlier, was sales launch performance the one-offs informed supported of of market As by very Russia seasonal biosimilar the supported And the the the of demand which in were world strong, [Indiscernible] and rest sales

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

quarter, year-over-year a with Our [Indiscernible] sequential strong has and recorded rupees, been last decline portfolio in of business previous India sales and XXXX performance fairly with year, and XX%. for growth sales the Adjusted crores of of in line expectations. COVID-related the X%,

the India new we X During products quarter, launched market. in

market XXXX, As higher [Indiscernible] have market XX.X% net our we against XX.X%. basis the December growth report of at on per grown of than

business recorded but of of PCI million year-over-year quarter decline XX%. sequential of Our $XX growth X%, with a sales

We coming improve the to quarters. in expect performance the

States. a drug in During X globally, we XX -- the files quarter, filing made filed the filing master United including

products global also markets one XX the have formulation United in filed We and States. across ANDA

as under -- which filings DA, the [Indiscernible]. of Our had December pending for of XX between minute we XXXX, XXXX X,XXX use XXst, and include within approval

quarter, for of commercialization our [Indiscernible] a the signed the [Indiscernible] we in States. deal have United with biosimilar During

our We continuing against also are that are -clinical the to in COVID months various molnupiravir seven on-going the portfolio global to in and stages fight with of pre biosimilar we launched other our pandemic. in development Earlier, portfolio of five during India, expanding have development. clinical

We are also to with on obtained rights ready opportunities from we the now Merck's. with licensing in are capacities certain India. back export Actually, in Sputnik, line working

Sputnik [Indiscernible] reducing for a actively a government as with booster V. as the India We vaccine are working Sputnik and [Indiscernible] of

booster submitted we We are Sputnik India to have with as M&A and countries. conduct integral to healthy DCGI and vaccines. our to our for Consistent option also Reddy's viable continue strategy, pursuing be and focus [Indiscernible] sheet, deals our to therefore, an part aspiration of a across to other other actively for growth client remains few balance proposal Dr. a yield.

progressing and the We to processes strengthen well digitalization businesses journey. the are in key core in

looking towards share Index and to the critical There we recent across ESG. focus businesses, the down to Jones recognitions In and about a in long-term efforts of in is on November results were optimistic number the Dow important XXXX, the our our this. and innovation, also world position [Indiscernible]. are gross very to double short-term pharma XXXX. as Going committed X as deliver forward, of well efforts pleased we the we company in deep our areas among remain I'm Sustainability

During the the the by workplace. quarters, for we inclusivity also gender recognized in UNWAP

with a Energy power in PX of of Our [Indiscernible] India. the plant National HPA manufacturing Conversation Energy of the prestigious Award Bureau Efficiency, by honored government was minister [Indiscernible]

been XXXX, Awards corporate XXXX Earlier CEX prestigious Innovation this [Indiscernible] the -- a We innovative APEX sustainable sustainability most we Awards, XXXX. year the as year recognized the the industrial at of Company at [Indiscernible]. won of for motivation month, Company have the

area I to are floor increase remain for that can you the see and here, going would to like this, focus action. results and continue in As open should we to answer. questions this our With

Operator

Dhamesha sir. go Ladies much, The very and ahead. question-and-answer now Please of you session. Global. Kunal we [Operator is Instructions] the gentlemen, Emkay from will begin question the from line Thank first

Kunal Dhamesha

the thank evening and Good opportunity. you for

[Indiscernible] been if the has you back on on the So the U.S. the calculation, quarter? the a maintained is, first that [Indiscernible] it's do question is somewhere you basis, a but sequential U.S. this on in calculation prices have

Erez Israeli

global So it's that, did more we're of overall kind products It's likely still work ' But relatively of in number the the basis, investors on with a a larger see growing. a the despite continue we competition But to and be bookkeeper phenomenon. situation. double-digit. QX, global-based

to market So share, offset we well managed with new activities. with with products, this productivity as as origin

about, of out future, of the in think still growing growth year. the we and in in of account I [Indiscernible] still I now than markets this grow [Indiscernible]. maybe is we do are be which this will So And the ten going to are the slower see quarters growth, nine to continue but in other nominals

Kunal Dhamesha

India this across like of who the be on contribution whether or months? for nine and [Indiscernible] be emerging revenue can markets percentage We the a would first to

Erez Israeli

quarter, It the second so in quarter. was in much not primarily the third

a sense without probably And the be was more so to will well the the not fourth, of fourth. we this COVID portfolio in quarter major as also on third In as the will second, QX. see main in in products. contribution respect much of this the So

Kunal Dhamesha

there [Indiscernible] in And [Indiscernible] contribution was influx

Erez Israeli

when That's much. decline, you but why the itself. is In on was the contribution in so much the compare relatively during basis, large India, it there sequential a not that's quarter, second third so because not why quarter,

is and looks demand. in-between, by one Omnicon like day much no affected second this before, remember actually with the the another so much Delta, way very The there I not was where

Kunal Dhamesha

Sure. on the And just that. start on follow-up

first that seeing with are the Now minnows equaled least we at contribution months. for has nine

to that [Indiscernible] microwave be the at see [Indiscernible]? continuing in do part or contribution a you would see You not big

Erez Israeli

that. are So we preparing for

preparing are for that. We

working area. So all the this [Indiscernible], we well we Naturally, on. be, predict really products how whether prepared are The for full this. are it's know work. that how additional don't it's community but have -- the activities around to the as vaccine, treatments, as [Indiscernible] whether vaccines and [Indiscernible] It's or it's going how the pandemic intervention, we we to

Kunal Dhamesha

grow case place out, in pillars growth to And day? have doesn't this Okay. in it do still on pan

Erez Israeli

Absolutely.

we will the double XX. that spirit past, digit continue have in grow discussed We the growth, in to

This product. business While the with -- financing the or new without is the

Kunal Dhamesha

it. That's Thank Okay. you.

Operator

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

Neha Manpuria

on U.S. normalized should double-digit in Thank given this see Could how that? color product price this erosion? you the some Any the you just bit question. quarter, that a It -- we erosion give for us into [Indiscernible] taking more on this is color you mentioned in is the about price trending

Erez Israeli

origin It anticipate And -- should business that transition be. will the were that -- as of already there. most products does. model the we the normally I continue face believe the use don't I it

not model us. of will the products that by believe behind So the that but change, that, terms business in were I is the effect most affected of

Neha Manpuria

And margins? we the fact divergence But XXX quarter-on-quarter. on materials raw -- look cost, drove that still we to in double-digit am Understood. these saw color the price you headwinds about improved of I improved just understand despite to terms genetics etc. -- Any [Indiscernible] this in margins, if at given in a close our cross basis points What had U.S. --

Erez Israeli

Yes.

what a combination So it I discussed. is of

will so change mix, products First, the mix. launch which improve the to of

activity doing have improvement with products in on that cost relevant third, and is Second, productivity. share is which we programs we're market and the productivity others, the

us forward. So I my these and I'm preparing mentioned so not growing despite [Indiscernible] script are were So this we in for phenomena, going for and of those about concerned we like

Neha Manpuria

no under no quarter? from COVID question Sputnik there contribution you was India. product contribution. Should very -- contribution or, little last the And mean I is you think Understood. that -- the in was from Did mentioned there

Erez Israeli

quarter time a because there this wave. the no demand X, in India. Yes, luckily, a in quarter, the affected very relatively such much Delta it in was was higher And there demand was by the

QX the in as India QX, contribution are QX we But in of to are we was going in is what going well some as to the see less. because so very [Indiscernible] see And

Neha Manpuria

the starts in us to to away? given what opportunity with And Sputnik, that government about for just export to we will discussions the export, allow the booster are that in sometime trial

Erez Israeli

can We as export the as the export. well products. can products, We vaccine the other

Neha Manpuria

yet? in it current quarter exporting started the or you've And Okay. not

Erez Israeli

In QX, we did export COVID the not products.

Neha Manpuria

Understood. Thank you so much.

Operator

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

Damayanti Kerai

whether The question some few the see commodity compared you second have is, and can moving quarter? next on you do how quarters? price, this in material And up observation you share part your seen of moderation raw to kind

Erez Israeli

some we saw commodity on And especially in us folding see. did we Yes, the with intermediate, in the it API. three areas [Indiscernible]

is cost. especially freight and the in is in India. fright months energy few on cost, second And The the the third -- especially [Indiscernible] the ago, shipping on the

will All in of not with the major the that absorbed way invest debt. down rates a go yet to so to confuse I within behind the mountains, with is level, us the money magnitude that don't hike additional we trend Some to depth but [Indiscernible] of other [Indiscernible]. counted not did anticipate activities inflation original I the additional we the offset believe the that in the prices

Damayanti Kerai

So, more that very price assume and is peak and broadly, we more can say, over see, duration the here on? I'd from might

Erez Israeli

and which pandemic to better [Indiscernible] assuming the big other predict the event, no geopolitical That's would looks not How be predict, it one the in can world, as now. situation

Damayanti Kerai

you your my can And your on, you biosimilar question about you. second markets product? for a and talk Thank target which key which bit working are portfolio are is,

Erez Israeli

talking about You're COVID?

Damayanti Kerai

For biosimilars.

Erez Israeli

globally. we Yes, are Biosimilar? publishing

for We additional have have they're emerging primarily markets the noble now India which the of is for Rituximab, intercommercially [Indiscernible] most The [Indiscernible] market. Russia. -- with today and and for biosimilars, And is we the timely markets.

are to In the that, addition development. we in

script, will we a -- if signed we do will States I did by shared ourselves. As we my in it United and with see deal and we

global are additional well pre going in to that products additional be products and in as now right the products, is have, -clinical trials, clinical first Rituximab we So stage. as three our

us until will in to from cover XXXX-XXXX portfolio these very we all XXXX which nicely healthy above a it's launch products. overall, of So

Damayanti Kerai

is, Duvvada And my from last any plant your question the have heard USFDA? you on update

Erez Israeli

as We normally of did in of not days takes XX and receive any feedback next USFDA days and from the we view sometimes today, XX week.

and submitted feedback. we'll the [Indiscernible] submit of get months in [Indiscernible]. our commitment We data response USFDA probably part that we'll we we [Indiscernible] to So and -- we the the as and are hopefully, on date, waiting the a a full. two got the around we to had And that certain time of need with get to

Damayanti Kerai

you. I'll queue. Thank get in helpful. That's back the

Operator

Thank from Ashwini line go the from you. The Investments. of ahead. Agarwal question Please next is [Indiscernible]

Ashwini Agarwal

Hello. Am I already there?

Erez Israeli

please. Yes, yes,

Ashwini Agarwal

the on what three first Can it this be current right helped debt, no is in [Indiscernible] would just mostly My off part? the -- status question like be be would which me seatings, commercialization update FYXXXX. you on tech we situation that for QX,

Erez Israeli

Which we question. get repeat? Ashini, your please really, -- Can you couldn't

Ashwini Agarwal

sure. Yeah,

which we'll the the of have is So pre we in we resting, on -filled -- FYXXXX. QX syringe, have [Indiscernible] which question launching been be the

So status with right can this just you now? update me

Parag Agarwal

Currently, and basically, [Indiscernible] Europe. it is calendar they [Indiscernible] for launch. have the [Indiscernible] and XXXX U.S. for

as now, status. So the that's of

Ashwini Agarwal

second on when odd, we my And we average is you pricing what launch a I of how but, it duration wanted the becomes, that the a would command Okay. can premiumisation Whenever question at bit which actually, order understand say, can be to products? to the compared -- part. normal product,

Erez Israeli

there to think comment be a part. don't that way on will I

Ashwini Agarwal

Okay.

Okay. No Thank issue. much. you. Thank so you

Operator

Thank the ahead. Phillip Capital, Putra next line is of please you. go question The Surya from from

Surya Putra

Thank you this opportunity. for

be pricing and broad-based, rising Dr. kind-of to So, price double-digit is arisen is Reddy's largely just more specific or launches double-digit, situation And number by of situation on have you. that turn, it the that three that the wanting because situation? risen in due pilot there in possibly you in could Is are price U.S. the U.S.? it

Erez Israeli

the of timing how issuing in what model facing are United is and piece. company is efficient, of price many customers every the other And, [Indiscernible] the are is the products propulsion which the of think, very your based naturally so business the States, the collapse I erosion. It's erosion much in

launched, competition. had, out we say few States, [Indiscernible] entire those case, So proportion in the naturally, last are as in boards years of XX, above -- that's United design face our the by the let's There so would basket. we

se, The indicator So business let's the business. growth percentage the less the say and of the why is at -- EBITDA per way dictate of least, health for our. of that's health it's and me, I

And even margins of are bit and despite growing it's the little we healthy and so pretty it. maintaining connected far,

Surya Putra

Sure.

our obviously in the we been R&D and also, The contributor second earning the had And reducing for focus recent new But the China pointing about revenue towards thought U.S. diversifying all. our contributor [Indiscernible] has the market, have market [Indiscernible] and going for targeted accordingly us. on in and spend U.S. times focus market. of

fiver down the of it So what North to North [Indiscernible] America, America let's say is fair further year currently in [Indiscernible] lane, the on recommended of has been continue sale XX? in

Erez Israeli

We four years. strategy describe our the for last did

our And so in India the knowledge, for based we in assets etc. growth, markets, this [Indiscernible] fixed is have other portfolio markets by assets, providing been on us and investing same using

allowing years. this markets yes, these So to is grow faster that fair And us think [Indiscernible]. say will I it's than

So continue States an us. for the United market to will important be

And and Just emphasize continue United will running. we invest want grow to States. to

grow markets, The than will States. faster other United India emerging

average then done -- the to time. is So capital decreasing the And the United over diversification will way efforts. therefore, already, accordingly States to decrease and will decrease is allocation

Surya Putra

Okay.

on this one Revlimid. ask Just question

we market then had take and open number achieved have market, SME. been kind Canada, could the signs of Whether we product that So to will for been and already whether and we of and launched bookings it, have is peak out effect right time of -- achieve the the the of revenue the Canada in [Indiscernible], from generated the we revenue appropriate in this signs longer also product out the product. for [Indiscernible] market that have have that

Erez Israeli

in that one that working, one each the sales states calibrate not in in longer. because of Canadian Canada. the each way you bit United the U.S. the the the the it's [Indiscernible] with them we participate X any then, is relevant one providing. certain Canada, in will a longer is is provinces relevant bit It's you Canada as in suspecting a process while are Day that situation. And the States, -- naturally is which [Indiscernible] launch the each in unrelated, case, take a a or the and respect. in of tenders launch in see Yeah. to U.S. In And directing other of in mechanism the launch the market have free Of the processes launch for part this, of

it's another. would hold emerging in I Europe, kind United markets. least, product are going in not a not conclusion note it the -- as going Last not I would of in States, same launch but a we we these just also to are draw to to So launch some situation as market not well one

be this a for So going to global us. is product

Surya Putra

Thank [Foreign you. Language] Okay.

Operator

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

Sameer Baisiwala

very good much. evening Hi. Thank to you And everyone.

question is around U.S. in I for XX% The the on think for share done the - market XX% gain, stabilizing bank job first it's weeks. Good which not few last

we a have And is the or what's back? it reached over the is you here? So supplier holding outlook peak that

Erez Israeli

the product We we -- -- think I that doing I well. is think

it We us in to product markets -- innovator's still come. of quarters at well is and And to is lot with share. next here gain this to a terms of supply, nice the There constraining are not on market holding still also continue this do planning a the as to the stage.

Sameer Baisiwala

market if is So holding the not much why it early what's the and roadblock? in share then not So higher double-digit supplier back? is

Erez Israeli

format. in is roadblock the the of customers desire The to product take

Sameer Baisiwala

is generic Okay. too that's Is anything with lower customers happy counter little product. cost the -- are priced, you? because generic But of intuitive so most take so lower time different to

Erez Israeli

No, different. nothing

Sameer Baisiwala

That's fine.

problem any a Russia, the over geopolitical are given Ukraine on doing what's that the the in situation? is, situation, there? read you any your disruption business, you question of Have seen business Second or

Erez Israeli

be it us, situation are important is important a market That The prepared wish Russia adversity, for any is calmness. But be I we if and world my there are. Will very only be accordingly -- beyond will to us. continue be it, for -- but there we paycheck. market there any to -- will unless for in hopefully will Ukraine-Russia both that the not, I an be have wish and peace -- and we'll not,

Sameer Baisiwala

impact on business? have far, the you seen So any

Erez Israeli

No.

Sameer Baisiwala

Great. Anything question, how [Indiscernible] is you share may, if Tech on any built pharmacy for Health platform. Okay. can diagnostic One how has for final the been there your online update four many Is physical to side. have six I on going which the rolled And or forward the especially fulfillment have quarters? you and cities out? you next What's that infrastructure progress? plan

Erez Israeli

very It the Sure. going stages nicely. basically last We on is of finishing the [Indiscernible].

I'm We XX in will is by proud and to cities I delivering well the us contributions of roots it's insurance India groups very went weeks. basically five are [Indiscernible] this and way the projects cover this next very of it and delivery, we roll-out our the much. [Indiscernible] will will service. for by and as present us say, the very is insured And now companies course cities, this convincing the And to the believe And work including a India engage platform, cities Delhi. so few a by the thing with of companies and It's in neat of in thing very holding accordingly, for mainland the that to out as good and business good main be provide to join grow of [Indiscernible] Mumbai beginning the This and our course, product. these excellent

Sameer Baisiwala

you Great. Thank so Okay. much.

Operator

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

Shyam Srinivasan

Good the Hi. you for taking question. and thank evening

remarks, is improve you one had our What's performance driving In opening PSAI the inventory quarter-on-quarter. some quarter first customers. de shop your I Erez, mentioned business. from we to the -stock last optimism? of we that on remember a Just expect

in understand So us FDA the dynamics you help the can business?

Erez Israeli

Sure.

it's will drive out slightly use pharmaceutical believing a call picking the base the very course, more I the, it, launches sales that to FYXXXX, behavior used companies most in COVID-related will [Indiscernible] PCI the and well that we that are to customers, second, Phase business, launched we area, in are X the as our on we be on that. [Indiscernible] drive if that X some The products Eastern internal well X growth our And in products use discussed it marketplace small this and consumption, is of like business are now and top if in with to and of This serving seeding products be PCI, will driver as up. launches in the API. to are will and we up. projects of FYXXXX as the are beyond which -- African and of Middle Japan, selling of growth up, both sales part which profitable countries. type FYXXXX, in done be going that to And will by the the savings activities is and meaning and naturally size. in are And the so Phase the for first of that also picking CDMO, biggest this products some one, CGM external and in come growth by which of much early driver will [Indiscernible] Phase the activities it's as use. by are we by taking are [Indiscernible], the of So as I and their [Indiscernible]. are as the And that changed the comprised is the CMO picking be be main

PCI So the three grow in the combination should the future. of

Shyam Srinivasan

are projects in that PSA you That's some there the early see I you are other very can helpful. the quantify perfections of it A, about? [Indiscernible] non-EPI talking Is

Erez Israeli

stage now, some this the a big, comparison, But a case API, [Indiscernible] and in sections well. of right specific the big, the not QX, yet was dominant there most And of meaningful. more of are And proportion. of will At consistence. in to comprised PCL as two be the it we're not API the going give of more still COVID

So was in QX. in not that which magnitude

So trend the corporate. is some sequential of to related

Shyam Srinivasan

helpful. Very

Second question is on the Sputnik V.

bringing Some -- just of the client we're reason trial it said And looking of vaccines? the register you for right? that the booster, for to what's doing comments, [Indiscernible] other as early with actively the

Erez Israeli

get on a believe as will in the future. and -- will approval have ready vaccines India the in this want the that. to take part the or one with we we approval will base here for advertise the [Indiscernible] option, protocol of the life the to the year of well we pending it trial. be now. we we'll to private government authorities other be for our from the booster as believe for Yes, have that And twice of We -- protocol, And we'll as another both this that booster

Shyam Srinivasan

Got it. your of those last therapy a well? cash understand geographical have help as to you Can or [Indiscernible] net the is there what remarks, in you that will Is just areas be assets that are, opening plans looking you question. acquire? some products us Again, no M&A.

Erez Israeli

are geographies, India, looking emerging geographies. spaces, market we projects. opportunities States are our and as for all all of there Europe, naturally, in in well those in the all active United So the of as now

maybe Some we're will discussing nature In of of few the them some the cost. will the the if faster same The allocation concluded. course of weeks, be of within later. them can be next be capital as and

events months. conclusion. next let's the very But that the so see of will we're We multiple are situation, we We actual that, growth. projects organic use they shopping not planning same see to complementary the we as gains the -- a comfortable because see which spree. -- At financial grow likely coming that be are -- come will to in it it in when now time

Shyam Srinivasan

you. Erez, you thank and And the so it. all Got Thank best. much,

Erez Israeli

you. Thank

Operator

The line Oswal next from from Tekwani Ashish is question Motilal go Management. of ahead. Please the

Ashish Tekwani

that the is Sputnik have a government export. there planning you amount the you're we permission From export export Can doses are obviously the to you quantify any opportunity. to we or open the got from or for Thanks to restriction? said,

Erez Israeli

cannot no a we but I restriction. to No will number, specific specify prevent now but -- that us export. restrictions

Ashish Tekwani

Okay, in fourth quarter, but these will you numbers be believe so? reflected

Erez Israeli

approved opportunity other will the for that, be happen, products, us. be [Indiscernible] as look that create as we left the [Indiscernible] can on And vaccine booster If the quantities will this supplement depends course, that It nice Sputnik will of if approval a for for get the all then type example, eventually, it be booster WHO. [Indiscernible] [Indiscernible] of accordingly. for we a will to of at the into

of proposal at relevant time. particular that market type this of So course depends is it on this the for

Ashish Tekwani

Okay.

to get clear. So this thing

the of agencies. from some export Is approvals cannot till you that understanding? right get You various sort

Erez Israeli

is that no. be the vaccine patients naturally, approved want can booster. customers not country for at that that buy They derive a the use -- should where from the but No, a for our either specific all use approved there the it. relevant in This use, for export, as will We will in development and as is markets, or to quantities. not

Ashish Tekwani

understand, do approved I productive that? Scandinavian about this of actually, But Okay. How from most the countries.

Erez Israeli

this come agreement This Russians, from of so directly not us, is Russia not the this type of part markets. will with with from our

Ashish Tekwani

next supposed was The Okay. you data. year Got in quarter were but launch right? [Indiscernible] that. on this, question this participant missed [Indiscernible]. I to I Through -- after three, thought

so? why there, and delay, out, operator the is delay launched in have there We a

Erez Israeli

I did not sir. the get question,

Parag Agarwal

Europe [Indiscernible] mentioned, product when as and Yes the near expect in Europe calendar is the XXXX, launch market. are with the [Indiscernible] they indicated both to basically,

Ashish Tekwani

we still away launch? do three say that two are the to three quarters two So quarters, you or probably from

Parag Agarwal

They quarters quarter or have two on specific we But specified maybe have one but obviously, not don't dates. the it next happen. may the

Ashish Tekwani

coming should market the [Indiscernible] been question March? by -- facing you say on start end be do also up for on similar and come But erosion. letting price Okay. you U.S. price would In on think erosion felt that experience, while those would gradually we Fair of [Indiscernible] of the intensity that March the enough. the off. quite intensity eventually by would It's double-digit as line, the this the the what of a just But out price to last erosion the end your in

Erez Israeli

number products As not these around I top depends case, down, mentioned our come before, the on we'll hence facing if and erosion the magnitude for specific not products this And and competition. meaning erosion is these bottom is it's probably our in for that up, likely price down. price the going specific of will see most a that [Indiscernible], it portfolio to so

a Ashish? So And down, level [Indiscernible] it's -- that's from a top of hello, not it's up. bottom this

Operator

unmute can't you. any and Mr. questions? do hear Mr. respond. your I [Indiscernible], [Indiscernible], Please line have further you

Ashish Tekwani

[Indiscernible]

Operator

unmuted. Asian Securities. question. take with response. the Market ahead. go from Akolkar the line Shrikant is ahead question Shrikant Please the We No of Please from line next go your Akolkar,

Parag Agarwal

[Indiscernible].

Operator

take from ahead. go Global. Kunal next We from question of Please line the Dhamesha the Emkay

Kunal Dhamesha

of Thank I once walks that's [Indiscernible] happen will thing asking, we that [Indiscernible] you one or supplied [Indiscernible], on down. any one for come take of the assume opportunity the it happening And also again. [Indiscernible], the to but life. we have many [Indiscernible], initial inventory will Brazilian

Erez Israeli

was of all just the of enjoy So all [Indiscernible] value come arrangement certain extreme these [Indiscernible], will And part had level will will this they the [Indiscernible]. from launch. are therefore, deal, which than serve just activities of the more financial to we Once go, as the in

So supplying not we and not the of we're aware the involving are launch, not date. and

to going [Indiscernible] when advice be are be will We they by them

Kunal Dhamesha

Okay, sure. Thank you.

Operator

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

Sameer Baisiwala

seems is for be thanks follow-up. to audible. the Yes, hope voice I There disruption. my some

indictable thinking begin final market? are and complex the product when can Just filed, type type and approval done any how see [Indiscernible] been there As many for [Indiscernible] the start finding, to in are that we U.S. one the you've long-acting your [Indiscernible] product, cycle for portfolio you these? question, how about

Erez Israeli

Yes.

naturally a So but efforts. not important it's to the U.S. very answer have is globally. generic of the in complex do part as we assets this also us yes, just And --

retail growth the faster the than time develop. to the development. of the in time to United will Overall, [Indiscernible] and we close still it and product. the are This on injectable too States the are grow generic Some in generic drive

Sameer Baisiwala

injectables? you these complex some have high-value specifically, of filed Very

Erez Israeli

some high-value We injectables, did complex yes. find

Sameer Baisiwala

product? does and such in one relate Okay, PAI done the [Indiscernible] it to

Erez Israeli

[Indiscernible] these of are yes. products coming Some from

Sameer Baisiwala

is, large No, Inspection injectable [Indiscernible] is the to Pre related PAI one the complex, -Approval such no, done question product?

Erez Israeli

The PI, the PI was entire specific they're the but products products checking are you checking related like on just we not not to sire. that, when specific naturally, hear

Sameer Baisiwala

you Thank it. Got so Okay. much.

Operator

line and ahead. Alok go CLSA. the the from last Please you. question Dalal we gentlemen, of from take Thank Ladies

Alok Dalal

Yeah. Good evening, the next [Indiscernible] question year observation adverse forward Bovada on is Bovada. FDA? an Would you still expect there to on U.S. grow from if in the

Erez Israeli

we next not the sites. others just are But don't some second, united, not for year, First, have the sites important And we to come. but are in and adverse years the for we have these -- First, looking also to this that but effect. this stage, we so hope in the not are growth very

Alok Dalal

And it? or any update on [Indiscernible] internally, the have you drop decided with to go launch ahead

Erez Israeli

We that the did all but next not you'll see launch in finish the months. unlikely few evaluation,

Alok Dalal

And on update Copaxone? lastly, any

Erez Israeli

Meaning, a have think crores. is goal likely all I it's to their information in FDA we the submitted in at the -- see next in launch now are don't the relevant We in believe few months. crores. The still that I we They're for process. again. that the waiting and response least,

Alok Dalal

much very for questions. taking you Thank Okay. my

Operator

I that the gentlemen, for Ladies the management conference last and closing the over question. was hand to now comments.

Erez Israeli

us you today call. out earnings Thank of In the all please for any for reach joining [Indiscernible] to [Indiscernible] case

Operator

Thank you joining very Ladies your you all behalf and disconnect may you Reddy's, now of us. sir. Dr. conference. this concludes And gentlemen, much, thank that on We for lines.

Dr. Reddy's Laboratories Limited (RDY) 28 Jan 222022 Q3 Earnings call transcript