Dr. Reddy’s Laboratories Limited (NYSE:RDY) Q1 2024 Earnings Call Transcript

Erez Israeli: That’s absolutely part of it. So we should reach those margins with the investment. It means it’s included. That’s why right now we have debt and we have even higher margin than debt. And I use the 25 always as a kind of benchmark of where is our comfort zone. It doesn’t mean that we necessarily get it quarter. Likely that in the next couple of quarters it will be higher than that, including that investment. And likely that the 25 anyway needs to include all of that as well, so it will not be below sure. And second one, the trade gen. Yeah. Just to clarify, 25% EBITDA, obviously is for the entire portfolio across. All Geographies. So there are business segments which will be higher and there are business segments that will be lower than that. 25% is our overall aspiration. And that modeling model includes certain part of portfolio which will be enlightened.

Kunal Damishha: Sure. Perfect. And secondly, on the trade genetic business, can you provide some details as to we have launched this division how many people have we kind of hired for this? How many products that we are expected to launch, let’s say over the next two to three years and which are the geographies that we are targeting or any particular therapy areas that we are targeting for this business?

Erez Israeli: So we are not participating in about 50% of the Indian markets. So when you look at our portfolio today, there are certain therapies and segments that we are not participating, which is about half of the market. So we are targeting, obviously, a place in which we believe there is a meaningful play in those areas that we are not participating. We will launch it all over India. So geographically wise, it will be in all the states of india. In terms of number of products that will be I don’t have the exact number, but it’s few tens of products that will be launched in that direction. As for the pickup and stuff. We probably need to see the response of the customers to that at the moment. We can offer we probably need to wait a quarter.

Operator: Thank you. That was our last question, ladies and gentlemen, I now hand the conference over to Ms. Richa Periwal for closing comments.

Richa Periwal: Thank you all for joining us for today’s evening call. In case of any further queries, please get in touch with the investor relations team. Thank you so much. Thank you on behalf of Dr. Reddy’s Laboratories Limited. That concludes this conference. Thank you for joining us. You may now disconnect your lines.