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| Statement |
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| The contribution from new product launches and improvement in base business volumes more than offset price erosion |
| And luckily, that's what you're going to see for quarter-over-quarter that we are actually improving our performance |
| Our ability to adapt strong execution in financial matters will enable us to grow our core business and build pipeline of products to meet patient needs |
| So I'm just pointing out that both Russia and India are branded generics business, and therefore, their margin profile is better than the unbranded businesses in U.S |
| And even that Russia would be similar to India or slightly lower than India? Parag Agarwal Russia is also a branded generics market, and therefore, its margin profile is also quite healthy |
| But specifically for this product, absolutely, I believe that it will be very nice for us |
| We expect sales to improve over the next couple of quarters on back of increasing volume pickup and strategic collaboration with regional and global players |
| Our focus on profitable growth coupled with sales and marketing execution have led to gradual improvement in business performance |
| We are pleased to report the quarter with the highest revenue, EBITDA, profit before tax and profit after tax |
| We saw growing momentum in our products and businesses |
| Our geographic diversification, productivity improvement in operations enabled operating margin delivery |
| We continued strategic progress on our various key initiatives to ensure that we are well positioned for differentiated and competitive goals |
| Sales for quarter 2 grew 9% and EBITDA grew by 30%, reflecting the portfolio's trends and continued momentum in U.S |
| We generated healthy EBITDA at 32% and annualized ROCE at 39% |
| We have built on our positive momentum and delivered another strong quarter of financial results with higher ever sales and record profitability |
| Our North America generics business recorded sales of $384 million for the quarter with strong year-on-year growth of 9%, while being broadly flat on a sequential basis |
| And indeed, by the way, this focus portfolio is growing very, very nicely |
| So in the first half, both the quarters, we have seen a kind of very strong growth of more than 20% kind of growth |
| And I believe that it's very nice and other channels and another part of the capabilities that we have now in India |
| And normally, we are getting healthy margins that enable us to buying a transfer plus investment |
| The growth was supported by market share expansion in certain existing key products and complete integration of main portfolio, which more than offset price erosion |
| I'm pleased with the progress that we have made so far this year and that we have a clear plan in place to move forward at the pace to deliver on our key objectives and support the overall growth ambitions of the company |
| See, in fact, obviously, there is a kind of a strong cash flow that we have been seeing also supported by REVLIMID, but whatever the case be, but we have been seeing a quarterly run rate of, let's say, INR 1,500 crores kind of cash flow -- free cash flow |
| We have guided to wanting to grow higher than the market double digit in this business |
| This demonstrates organization commitment to our social goals and accountability |
| Reddy's as the leading company in ESG in India across sectors |
| Within the emerging markets segment, the Russia business grew by 4% on a year-on-year basis and 9% on a sequential basis in constant currency |
| It's meeting our expectations and likely that you will see growth in the next two quarters |
| Consolidated revenues for the quarter stood at INR 6,880 crores, that is USD 828 million and grew by 9% on year-on-year basis and by 2% on a sequential basis |
| We further made following strides to access new growth levers and drive differentiation |
| Statement |
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| Our emerging markets business recorded sales of 1,012 -- INR 1,016 crores, a marginal year-on-year decline of 1% and sequential increase of 5% primarily impacted by seasonality and unfavorable products |
| Part of it is also because as per the plans, we have obviously seen most that -- we have price erosion as expected when required if it meets our expectations from a business case, but naturally has contributed also to this decline |
| Consolidated gross profit margin for this quarter has been 58.7%, a decrease of around 40 basis points over previous year and broadly flat sequentially |
| So if I look at the gross margin for that business has gone down |
| And then lastly, we have mentioned price erosion in U.S |
| There is always concern about the price point, about the adoption of India and certain requirements that are relevant for -- to localize the product, whether it's local production or local trials or maybe different position of this product |
| Erez Israeli 25 to 30 because there's some uncertainty about time of approval |
| as a growth drag at least on a quarter-on-quarter basis, perhaps |
| But is it primarily due to the unfavorable pricing environment? And if that is the case, do we get the benefit of lower API prices in our global generic business, if that is like more widespread pricing decline in APIs? Erez Israeli I don't see such a decline in the API like it was in previous years |
| Now this price erosion in this quarter is limited to few large products such as vasopressin or it is more broad-based price solution that you are witnessing? Erez Israeli The price erosion always affects sales and products that went into either bid or RFP or competitive situation in that particular quarter, it's never broad |
| We -- at the time, we thought that the ramp-up will be earlier than what I communicated in the past, but COVID and also our own execution may be late, but now it's absolutely bearing fruits |
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