Gagan Thareja: I hope I’m audible?
Operator: Yes, you’re audible, sir.
Gagan Thareja: So the first question is on the India business. If you knock out the discontinued products from this quarter 1 of 2Q of FY ’23…
Operator: Sorry to interrupt, you were audible, but I think you are too close to the mic.
Gagan Thareja: Okay. Is it better?
Operator: This is much better, sir. Please go ahead.
Gagan Thareja: Okay. So my question is that adjusting for the discontinued products, what would have the India sales growth being year-on-year for the quarter?
Erez Israeli: So without these products and without NLEM, we are about mid-single digits for the quarter.
Gagan Thareja: Okay. And for U.S., from 1Q to 2Q, would there have been a material difference in the REVLIMID sales for you?
Erez Israeli: I cannot discuss the quantities of REVLIMID.
Gagan Thareja: I don’t want you to enumerate the number. I’m just asking, would it be a reasonable assumption or inference that there wouldn’t have been a material change in the REVLIMID sales from the first quarter to the second?
Parag Agarwal: Most of the growth, like Erez said earlier, has come from the base business and also the main portfolio.
Gagan Thareja: Okay, right. And India, is it a correct surmise that you’re saying that India you’ll exit FY ’24 with a double-digit sort of growth rate, that’s Q4 you’ll be able to do a double-digit sort of growth rate. And you will probably be improving from 2Q to 3Q and from 3Q to 4Q. Is that a correct inference?
Erez Israeli: That’s what we are trying to do, absolutely.
Operator: Next question is from the line of Saion Mukherjee from Nomura.
Saion Mukherjee: My question is around — you mentioned about inorganic activities. The cash balance is significant, and it could continue to rise. If you look at the acquisitions and deals that you’ve done, they are much smaller in size. So one is that it seems that — are you — so basically, the question is are you looking at larger deals going ahead? Is there more activity that you’re seeing on the M&A side? And related to that, what’s the level of leverage that as a company you would be comfortable with?
Erez Israeli: So we are looking for all deals, small and bigger than usual for us as needed, but we are not in rush. It has to be a good deal. It has to be something that will match our strategy, something that we believe can contribute to our growth. Is there products that we want or capability that we are missing. We are not in a rush to spend this money. In that respect, also the money is yielding very nicely now by investing it. We are — as we speak, we are participating quite a few processes and we’ll see what will yield. Likely that we will spend eventually this money. But it’s important for us that it will be the right strategic deal for us. We are not looking for transformative deals. We are looking for complementary activities for our organic strategy.
Saion Mukherjee: And any view on leverage, Parag, as to what level of leverage you would be comfortable with?
Parag Agarwal: See, we can — I would say, 2x EBITDA is what we will be willing to go for. Beyond that, we would not like to take a financial risk.
Operator: The next question is from the line of Neha Manpuria from Bank of America.
Neha Manpuria: Parag sir, on the SG&A expense, that seems to have inched up quarter-on-quarter. I just wanted to get a sense on where are we investing? And how should we look at that number over the next few quarters and probably FY ’25?
