Cipla Limited (CIPLA) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to CIPLA Limited Q2FI27 Earnings Conference Call. As a reminder, all participant clients will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. We have with us in today's conference, Mr. Achin Gupta, MD and Global CEO, Mr. Dinesh Jain, Global CFO, and Ms. Diksha Maheshwari, Head Investor Relations. I now hand the conference over to Ms. Diksha Maheshwari. Thank you, and over to you, ma'am.

Thank you, Shourya. Good afternoon and a very warm welcome to SITLA's Q2FI27 Earnings Call. I'm Diksha Maheshwari from the Investor Relations team at CIPLA. Let me draw your attention to the fact that on this call, our discussion will include certain forward-looking statements, which are predictions, projections, or other estimates about future events. These estimates reflect management's current expectations of the future performance of the company. Please note that these estimates involve several risks and uncertainties that could cause our actual results to differ materially from what is exposure implied. SIPLA does not undertake any obligation to publicly update any forward-looking statement, whether as a result of new confirmations, future events, or otherwise. I hope you have received the investor presentation that we have posted on our website. I would like to request Achin to take over.

Thank you, Diksha. Good afternoon to all of you, and we appreciate you joining our Q2 FY27 earnings call. We are pleased to report a revenue of INR 7404 growth with a steady sequential growth of 4% QOQ. This was supported by broad-based performance across our key businesses. One India recorded its highest ever quarterly revenue, while our global portfolio continued to demonstrate resilience amid a dynamic operating environment. We continue to invest in pipeline, and we receive key approvals, including our first BPI approval of generic adware in the U.S. In line with our objective of strengthening biosimilar pipelines, we partnered with CHILU for Pembrolizmo in North America, and we initiated clinical development for one more respiratory biosimilar asset out of our own pipeline. Together, these developments reinforce our confidence in the long-term opportunities across our markets and portfolio. Coming to business-wide performance, OneIndia delivered 12% YOY growth, sustaining its track record of consistent double-digit growth over the last few quarters, driven by strong execution across key therapies and the resilience of our franchise in the IPM. In our branded prescription business, we continue to outperform the market, delivering 15% growth, which was led by the chronic portfolio as per IQVIA, YTD, September 26. Our key chronic therapies continue to grow ahead of their respective markets. With the respiratory growing 11%, anti-diabetes grew 50%, including the GLP. Urology, 11%, and dermatology, 16%. This was underpinned by strong brand equity, robust volume growth, effective field execution, and sustained momentum from new product introductions. Our overall chronic mix grew at 60.3% as per IQVIA MAT September 26. Our launch momentum remained strong. During the quarter, we strengthened our portfolio through targeted launches across key therapies, including Revismart in respiratory, Calvary's DM, and SR in anti-diabetes, dietary in cardiovascular, and Resontem in anti-infectives. These launches collectively underscore our focus on deepening our presence in priority therapy areas and further add to the breadth and competitiveness of our portfolio as we continue to lead IPM in terms of volume share. We also entered into an exclusive licensing agreement with CTTQ, a sino-biopharm group company, for an novel asset heard to by a specific antibody-drug conjugate. This partnership further strengthens our innovative oncology portfolio and expands our presence in the next-generation targeted cancer therapies. On our trade generic business, we delivered a strong double-digit QOQ growth. Expanding the portfolio remains a key growth driver here to 15-plus new launches this quarter. On our consumer health business, we continued the upward trajectory with Nicotex, Omnigel, and Cipladine consolidating their leadership positions in their segment. The business is driving healthy secondary growth and actively exploring opportunities to invest in products and channels to further expand the distribution. Operating profitability improved, reflecting the strength and scalability of our consumer health strategy. Coming to North America, we delivered a quarterly revenue of $172 million in Q2, which represents a $10 million improvement versus previous quarter. We remain confident of furthering this momentum through the remainder of this year, supported by our launch pipeline and scale-up of these new assets. CITLA continues to hold the number one position in overall U.S. Albitrol MDI market this quarter as well, with our market share of 22% after IQ via data for last week of September 26.

So far this year, we have secured approvals for two free respiratory products,

with generic Generic Edware approved in Q1 and Generic Edware approved in Q2. Notably, Generic Edware approval marked our first DPI approval from U.S. based manufacturing network, further validating our differentiated respiratory capabilities and reinforcing our commitment to complex respiratory therapies. Another important strategic milestone during the quarter was our exclusive partnership with Jilu Pharmaceuticals for the U.S. commercialization of a biosex Looking ahead, we remain focused on enhancing the performance of the North America business through a combination of new product launches and disciplined commercial activities. A quick update on our pipeline. Our pipeline for this financial year includes three additional significant launches for the U.S., which is in line with our previous guidance. This includes two more respiratory assets and one key peptide opportunity. Additionally, we have four biosimilar programs under development for global markets, which continue to advance steadily. Alongside these efforts, we remain focused on strengthening our R&D capabilities, particularly for the U.S. market. We are progressing well on the organic pipeline development with approximately 45 to 55 leads planned. In South Africa, private market, we achieved a strong secondary growth of 6.5%, which one Africa business continued to strengthen, Thank you. We continue to make steady progress across our global manufacturing network. During the last quarter, USFDA certified the inspection at our Inversion Unit 3 facility in New York as a voluntary action indicated. And during the current month, USFDA conducted a routine GMP inspection at our Inversion Manufacturing Facility in Long Island, New York, which concluded with zero form for it. As you are aware, U.S. FDA also conducted a follow-up GMP inspection at our Ketampur facility in India through seven observations.

We did a quarterly revenue of 7,404 crores with a sequential growth of 4% quarter-on-quarter. The EBITDA margin excluding other incomes crude at 18.7% for the quarter. This performance is in line with the guidance of sequential margin expansion, and we remain confident of continuing this trajectory over the remainder of the year. The reported gross margin after metal cost stood at 64.4% of 7% quarter non-quarter, supported largely by an improved product mix. Total expense for the quarter stood at Rs.3382 crores, reflecting an increase of 4% quarter non-quarter. This increase reflects our current investment in the upcoming product launchers and enhanced manufacturing readiness. We remain focused on innovation and future readiness. R&D investments for the quarter were Rs. 423 crores or 5.7% of the revenue, directed largely towards the product filing and key development programs. We continue to guide for the full-year R&D expense in the range of 6-7% of the revenue. Profit after tax for the quarter is true at Rs. 878 crores, representing 11.9% of the sales, with a sequential improvement of 77 business points. The ETF for the quarter is true at 27.2%. Now coming to our peak as generation and operating efficiency, let's continue to try a healthy net cash position. As of 30 September, the tax on our balance sheet including lease liabilities true at Rs. 699 crores with a net cash equivalent balance of Rs. 9889.23 crores. Looking ahead, our key priorities will include, for One India, the aim is to focus on the execution to sustain the growth momentum and outperform the market in the bandage prescription, rate generation, We will further strengthen our presence in chronic therapy while maintaining the robust directory we have built in respiratory. In North America, we will remain focused on driving growth through new product introduction including the key launches. We continue to maintain the guidance to exit this fiscal year with 1 billion annualized revenue run rate. In South Africa, our focus will be on continuing to grow faster than the market in the private sector. In emerging market in Europe, the top priority is to drive top-line growth while maintaining a strong margin trajectory. I would like to thank you for your attention and we request the moderator to open this session for question and answer.

Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Surya Naran Patra from Philip Capital, India Private Limited. Please go ahead.

Yeah, thanks for the opportunity, sir. Sir, so now for the second half, you have reiterated in the opening remark about your...

Sorry to interrupt, sir. So could you keep a bit distance from your device?

Sure. Okay. Is that fine?

Yeah. Please go ahead.

Yeah. So in the opening remark, you have pointed out about your target, US revenue target of around exiting the year with a kind of $1 billion kind of run rate. So now it is relatively close by. If you can give some sense, some color, What is bridging this gap from the current 170-odd levels to 250 kind of levels? That would be helpful, sir.

Yes, sure. So, we had guided to a sequential improvement this year, and we had mentioned that there are four big respiratory product approvals and one big peptide approval that we are expecting this year. So, our revenue guidance is a function of uphealing, which will come from these launches. As we get the approval and as we scale up these products to gain greater share in the market, we have different pathways to get there, and therefore we are maintaining the same guidance at this point in time. Okay.

So, just one clarification here, whether we are in any manner thinking about the redemption of xanthiotide or even progression of the Ventolin as two incremental components to achieve this kind of a timeline, I mean, revenue number?

So, regarding the two products that you mentioned, Ventolin will be a big driver for us towards the, you know, as we progress in the year, and as the product scales up, Ventolin will be a big contributor. Landreotide, we don't anticipate being back for this financial year. We are pursuing two parallel paths. One is to work with ParmaSense for their remediation and represent, second is a new working in North America to file land your rights. So, but both of these are not included in our exit.

The GLP-1 portfolio, largely led by the IORPEC, is about 10% of your domestic sales currently. This could be because of the kind of first-year kind of a penetration what we are seeing. In the GLP-1 products in India. But is there any sense of what could be the growth in this GLP-1 portfolio? Or is there a possible growth that one should think for the next year?

So, we are seeing very good adoption of GLP-1 as a therapy, particularly on terripetide as a molecule. We are seeing month-on-month growth. We expect that trajectory to continue. Your peak has become the second-largest brand in the rankings on GLP. The saturation on this front, we expect in the months to come.

Just one more point, sir. See, in fact, the trade margin track, what we have seen in the oncology portfolio, See, right now, the supply means the price point of the suppliers that is not getting impacted. But whether this is likely to create a kind of a competition among the suppliers?

So, I think this discussion is still ongoing. The one thing which the government had announced was around margin cap on high-price oncology products. If it's a patient and we don't believe it will have our business, which comes out through these, you know, discussions and rulings, we will have to wait and see what's the...

Thank you. The next question is from the line of Tushar Manudhane from Otilal Oswal Financial Services Limited. Please go ahead.

Sir, thanks for the opportunity. Sir, just on generic adverb, is this product launched? So, we got approval in July, and so, could you just explain, like, is this a normal timeline to launch the product, or this product is taking a little longer time?

In the US.

And secondly, sir, with respect to the investments in the biosimilars, first, like, how much would There have been the overall investment in the biosimilar space for Sikla. And secondly, where with respect to the Biosimilar Agreement, if you could just share where there is the clinical development status of the product from Sikla Pharma.

On biosimilar, the investment that we have is in four assets which are the expenditure on an ongoing basis. The Pembro is a bio-similar that we recently licensed for North America. We are expecting it to be amongst the first wave of launch and therefore make a very significant contribution to North America business.

Thank you. The next question is from the line of Dr. Kunal Damesha from Acquired Capital Limited. Please go ahead.

Hi, thank you for the opportunity. The first one on the US business, if you could provide some details on the US ramp-up that we are expecting in the second half from the 172 million, the exit rate of a billion dollars. If I were to split this ramp-up between the existing products and new products, which are yet to get approval, how should we think about that?

Ramp-up is a function of new launches this year, which includes Ventolin, which was... So as I said, we have multiple pathways to get to that exit run rate.

Sir, I understand that. I just want that, you know, the 80 million ramp-up that we are expecting, of that, potentially, what proportion is going to come from the products that we have already got an approval or launch, and what proportion would come from the three approvals that we are waiting for.

Okay, see, it's a little bit hard for us to give.

Just on Ventolin, we have launched this product in quarter one, right, and we also have a PGT, you know. So what is, you know, leading to a ramp up being delayed to H2 for us? Are these, like, contracts that we're waiting for in terms of renewals, or is it the supplies from our side which is ramping up? How to think about this?

Kulant, these are from our North America manufacturing.

And it would not be a lot, would not be a function of the usual respiratory uptick that we see in U.S. business during winter, right? That is not a big part of our calculation, is it?

No, because if you see in a crowded albuterol market, then we have all the right relations.

And not disclosing the numbers on supply, but let's say if you're manufacturing, you know, certain quantity, where do you think that that quantity would be like 2x, 3x, 4x, you know, by second half? Sure. Thank you. And one last question on the trade genetics business. So, we have said that there is a strong double-digit growth on sequential basis in Q2. If you could provide how the business has, you know, panned out on a year-on-year basis, and also the disruption that we had in Q1, would you say quarter two is more of a normalized run rate, or it's the quarter three where we would get a normalized quarterly run rate It

has good growth, but if you compare YOY, this is, you know, mid-single digits, and that's a function of some seasonality and also some cost-related factors. But we expect a steady growth in this business like we've delivered in the past years. So there is no change on the trade generics, which has been a very steady performance.

Sure. Thank you and all the best.

Thank you. The next question is from the line of Damayanthi Kedai from HSBC Bank. Please go ahead.

Hi, good evening, and thank you for the opportunity. First, as you retain your guidance for U.S. run rate, exit run rate, do you retain the guidance for EBITDA margin also, which you indicated earlier, 18.5 to 20% range?

Yeah, so, mainly for the, we are maintaining both the guidance, but exit run rate for the U.S. would be, but we are not changing the guidance.

Okay, thanks for that clarification. My first question is on the awaited launches for the U.S. So, as you indicated, three significant launches still remaining for second half. So, my question is specific to the peptide opportunity and Stimlico respirately inhalers. So, in your observation, how far you are from the final approval and how confident are you about launching these products so that they can contribute towards the second half ramp up?

I prefer to launch, but I think the exact timeline is more, but you are confident of the approval.

And, again, it's safe to assume you have goal date for both the products in the coming months, where we will hear back from the FDA. Okay. Then, my second question is on your venturing opportunity, where you have launched, and as we are discussing, it's in a ramp-up phase. Yes. So, when I think, I look at the market share gain so far, still I think in single digit, and you are indicating significant ramps up in the second half. So, it's just a matter of ramping up supply from your end, right? We have enough visibility on the market demand and your penetration within the channels, etc., which can make it a successful launch.

Yes, exactly. We're dealing with the same pair of customers. So, we had received an OAI on this facility approximately three and a half years back, and that's the normal time it takes for the FDA to revisit. This time, as we had shared, we remain committed.

Okay, but you have done risk mitigation for most of your key approvals in near to medium term. That's safe to assume. As you indicated earlier, like you will do dual site filing, etc.

A new approval.

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

Yeah, thanks for taking my question. I just have to clarify, the two respiratory approvals and the peptide approvals, did I hear correctly that we expect the approval, the goal date for these products is in third quarter, or would this be more post-quarter waited?

Approved in this financial year.

I think that's part of what we have, you know, what we have guided. The exact dates, you know, we announced them.

Understood. And my second question is, you know, for the respiratory launches, once we get approval, is it fair to assume that the time to ramp up probably wouldn't be as much as what we've taken for Adware and Ventolin? Are these also from the U.S. facility or are these filed from our India facility? I think one of them is third party, right?

Yeah, so one of these partnered assets is from the Goa facility, which has been manufacturing MDIs for quite some time, so there's no ramp-up involved there. And the other one is from the U.S. facility.

Understood. So would the ramp-up for that also be more gradual life-facing for Ventolin and AdWords?

No, see, some of this was a function of all the remediation that we've done in the last three to four years, and these were the first launches out of, I mean, Ventolin and Agra were the first launches out of these units, but now the teams are there, and, you know, they have the experience of working on these products, so we don't expect similar kind of challenges on future launches.

Understood. My second question, Vinish, on the other expenses in the quarter, there seems to be a very sharp jump that we have seen, you know, quarter on quarter. I just wanted to get a sense, is there any, you know, one-off there in that number, you know, that is there in the second quarter?

So, Neha, there is a one-off person. See, if you look at sequentially also, normally our quarter two expense base is always higher than the quarter one. And as we have guided earlier also, as Achin mentioned just now, our launches ramp up is going to happen subsequently. But our investment has already happened, happening on that. So, I think that is one play which is happening here.

Okay, okay, understood. And my last question, tax rate for the full year would be closing to the 25% level or this 27% that we have reported in the first half?

It will be in the range of 27 to 27.5 now.

All right. Thank you, Tamanjali. Thank you. The next question is from the line of Bino Patiparampil from Ellara Capital Private Limited. Please go ahead.

Hi, good afternoon.

A couple of questions. One, just to follow up on Kate Trudeau, you said you hope to be in the first wave of launches. Could you also put some timeline to it? I believe the patent expiry is around 2029 calendar year. Is that your target entry time?

Yes, that's right. Be in time for the patent expiry. To launch in time for the patent expiry.

Okay. And the U.S. filing approval, all this is completely in Kilu's hand, or are you involved as well? Got it. Okay. And just one other question. There is this product, Dovato, which is Dolu, Tugraver, and Lamyuddin, in which seems like you have a first file. Could you confirm that and also give us a timeline for launch? Yes. Okay, okay, okay, sure. And just to wind up, these respiratory assets you are expecting, is one of them from the Elipta franchise? Okay. Great. Thank you. I'll turn back to Kiran.

Thank you. The next question is from the line of Abdul Qadir Buranwala from ICICI Securities Private Limited. Please go ahead.

Hi, thank you for the opportunity. Two questions from my end. First is on, sir, your India business. So, if I look at your consumer business, in Q2 as well as in first half, you know, there seems to be a slowdown. So, can you help us understand, is it mainly because of the higher base of last year or anything to read out there? Thank you.

I see the, you know, the brands themselves, all of them have continued to grow and gain market share.

Understood. And second is on margins. So this quarter, we have seen a good amount of sequential improvement. And for the second half and 28, where we see US doing better than where we are today, any color if you could provide us to, you know, how the margins may shape up?

Right now, what we can say is we are expecting sequential improvement for the remaining two quarters of this financial year. And then I think by now, we are now 20% that we've added for.

Thank you.

Thank you. Anyone who wishes to ask a question, may press star and 1 on the touchtone telephone. The next question is from the line of Vivek Agarwal from Citigroup. Please go ahead.

Yeah, thanks for the opportunity. Just a small clarification on margin. As you are highlighting that, you are expecting quarter-on-quarter improvement in the margin in the coming quarters of this year. I'm just looking at the 4Q margins of the company generally remain on the lower side because of the functionality. But this time around, you are expecting a QOQ improvement from 3Q to 4Q. Is that the right way to understand?

Yeah, see, as we guided earlier also, we are expecting us in the U.S. business. So I think that is going to lead to this improvement sequentially.

Thanks. That's all my advice.

Thank you. The next question is from the line of Steyron Mukherjee from Nomura Asset Management Company. Please go ahead.

Yeah, thank you for taking my question. Achen, on South Africa, one clarification. So, you mentioned the growth is almost 30% faster than the market as per secondary data, but the primary data seems to suggest a decline. Is this all related to the accounting changes, and if you can talk about the primary growth that you're seeing in that market, both for private market as well as for the tender business?

So, there are two factors. One is, you know, the accounting change, which we explained last quarter. Same thing is valid for this as well. It restates top line slightly. But also, you know, on the tender front, you know, we had lost one of the tenders, which we contested in the courts. And there's a favorable ruling which has just come out a few days back. So, right now, what you're seeing as a dip on the overall reported number is also partially on account of tender business, which we are hoping will correct now that the total...

Right. And also, you know, of your total emerging market business or Europe business, what percentage would be tender driven currently?

It's not that high.

It's not very high. We'll have to quantify it exactly, but we do not live too much in tenders across the world. I think the bigger chunk will be in the South Africa.

Okay. The other question I have on, you know, R&D spend and biosimilars in general. So you have four products under development. Will you be required to do phase three trials here? And in that context, we wanted to see over the next two years, how you see R&D spend increasing for you from the current level of, say, you know, a quarter year on it of 400 to 500 crores.

For the U.S., you know, there is a general expense on the investments.

Okay, so your R&D spend will continue to remain at 6% to 7% in the years ahead.

Yeah, this year it is 6-7%. You know, also it is a percentage, so as revenue grows, you get more to invest. Provide a more detailed guidance or if there's any change.

And for this biosimilar asset, you have facilities, so you're investing in facilities, you can give an update on drug substance, drug product capabilities.

Yeah, we have a joint venture with an experienced manufacturer called Gemwell. That's the one that we are calling in-house because supply has majority.

Okay, and you already have a facility there?

Yeah, so that joint venture, yeah, that's access to facility and it's also scale.

Thank you. The next question is from the line of Alamkar Garade from Kodak Institutional Equity. Please go ahead.

Hi, thank you for the opportunity. Achin, one question. When you say multiple pathways to achieve the U.S. guidance, can you please elaborate on it? So the question is basically, does it mean that you would be able to achieve the guidance even if, say, one of the three large pending approvals do not come through in FY27?

Adhan, can we have a combination of half pathways to get? A combination of get these approvals, but I think...

Understood. So, basically, Aachen, I mean, you have some flexibility of possibly doing better on the already approved assets. At the same time, the timing of the new assets remain. And while you are confident, the exact timing can vary, as you highlighted earlier. So just, I mean, from more of a scenario standpoint, assuming one of the relatively smaller assets out of the three gets delayed, can that really make a big difference as far as the guidance is concerned?

Hard to answer that particular question, Alanka, but I think as we said, Ventolin has a lot of potential. It's a very big opportunity. So that itself covers, you know, a lot of the delta between this and the exit rate. And then we've seen some of the other combination of the,

I think that the solution

to each product is a little bit difficult because there are a lot of moving parts to it.

Understood. Fair enough. The second question is, you had previously spoken about higher focus on specialty and innovation, innovative assets more with respect to developed markets. Can you take us through the thought process here and any progress you would like to share on this one?

See, there are, you know, we've called out an increase in the number of file products for the US market, where we are saying 45 or 50 filings, all of these are complex assets. That's one. Then biosimilar is the other leg, where internally, you know, we have the more near future. And three, I think what we've started looking at is for markets like India and other emerging markets where we have a candid presence. We are in licensing innovative products like the deal that we announced with further the portfolio and take it more on the differential.

Just one clarification there is licensing or acquisitions of innovative assets in developed markets a strategy, a part of your strategy?

Less of innovative, but there are certain, you know, B2 assets with solutions and licensing.

Got it. That helps. That's it from my side. Thank you.

Thank you. The next question is from the line of Ashutosh Kumar Jha from Baliasni Asset Management. Please go ahead.

Thank you for taking my question. Just wanted to understand one piece of our overall business construct. Given that the U.S. revenues have come off post the Landry Tide supply disruption, is it fair to say that close to more than 55 to 60% of your current EBITDA comes from the India business at this point?

We are not reporting segment-wide profitability numbers, but the India business remains profitable, growing well, and much of the R&D expenditure is towards developed markets. There's a swing in...

Thank you so much.

Thank you. The next question is from the line of Bharat Selly from Accurator Securities, Private Limited. Please go ahead.

Bharat, kindly unmute your line, please.

Yeah, hi. Thanks for the opportunity and good evening, everyone. So, I just wanted to understand on the three assets which we are talking particularly from the second half perspective. So, over here, since all these products will take some time to ramp up, So, indicatively, are we talking about these opportunities has to be a 3Q and approval opportunities for us? Okay. And on Symbicot, as well as on the peptide opportunity, which we keep on laughing to, have we ever got any CRLs on these products before? Right. Last one. On Symbicot, have you seen any dynamics changing for Symbicot opportunity, considering there have been additional completion which has come in the product?

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

Yeah, good evening. Thank you for taking my questions. Just looking at the India business prescription growth, the branded prescription growth, 15%, if I were to kind of leave out, and maybe I'm being selective, to leave out the anti-diabetes portfolio or including conglutide, we have seen slower growth than market. So am I reading too much into this given a very diverse portfolio or is there something to read into this?

What is the growth rate across therapies on India business?

Yeah, I'm just saying, I think if we remove semoglutide contribution, 10%, like what one participant said, YOI growth at 15%, if I were to strip that out, would be much lower, and probably much lower than the industry for the other therapies. So, I'm just wondering, is there something to understand or analyze that piece?

14.6 versus 14.3 for the market on a H1 basis? If you see respiratory, there's a beat on the market. Other than GLPs also, diabetic has done well, cardiac, dermatology, all of them are a beat on the market. I think our numbers have a little bit more skew on respiratory, so you may have, you know, one may get this kind of impression, but because respiratory therapy grew slower than diabetic, cardiac, etc. in the last two quarters, right? But we have a beat on individual segments across the board, and we have been focusing on building a very strong presence in chronic therapies other than respiratory, so cardio, metabolic. We have very solid portfolios in these, including now in obesity and dermatology, urology. I think these are very strong. So we continue to drive market-beating growth in these segments.

Very helpful. Just a second question on your cash balance. We are now running at a very high cash balance, cash and cash difference, right? So, is there any different approach or philosophy for deploying this cash because we need so much cash on our balance sheet? That's the second question. Thank you. All the best.

You know, we will look at opportunities to acquire assets. We have been selective about that, as we mentioned earlier. We're looking at differentiated opportunities, which are more likely to be on North America side or Europe side primarily, because India, we are number one player by volume, so we find it a little harder to non-overlapping assets. But we are on the lookout we no longer come into as well.

Thank you.

We take that as the last question from the participants. I now hand the conference over to Ms. Deeksha Maheshwadi for closing comments.

Thank you, everyone, for joining us. If you have any further questions, please write it to investor.relations at the recepter.com.

Back to moderator, we can end the call.

Thank you, ma'am.