JB Chemicals & Pharmaceuticals Limited

10%

portfolio was nominal and if you are trying to understand the fact that India market IPM grew at 10% versus J.B. growing at 30% and how much does Sanzyme add to make things much more clearer even wi

30%

if you are trying to understand the fact that India market IPM grew at 10% versus J.B. growing at 30% and how much does Sanzyme add to make things much more clearer even without Sanzyme portfolio our

20%

without Sanzyme portfolio our growth would have the market beating and we would have been easily 20% upwards, so organically also without that portfolio we would have had almost 20% plus growth. N

rs,

Asia, Russia, Canada, Australia and New Zealand where we have been working closely with our partners, there we see robust order book going ahead, but if you look at standalone quarter four, the figure

15%

ou already have do you get your return on capital after investing in that investment of more than 15% because most of your peers who are present in US maybe 20, 30, 40 times your sales and also your

30 million

at, so from a US perspective one like Nikhil said it is not a very large piece right, so it is a $30 million business and our model is different we work with front end partners and in that sense from a capi

35%

nization after netting off the acquisitions and the non-cash expenses ROCE is still be upwards of 35%, so I think that should address your question. Jason D'Souza: Do you have another question fo

70%

alance in favor of international markets and particularly U.S. Nikhil mentioned very clearly that 70% of our time, investment, bandwidth, capital allocation is going to go further domestic franchise,

1.3 billion

ng benefit of price growth in the country, but that may not be sustainable for long-term and with 1.3 billion population a huge opportunity what I spoken in terms of where we are placed as a company in the w

4%

from our organic business obviously you will see new introductions, which would contribute around 4% to 5% to our growth and the assets that we have acquired, which today are not growing as far as t

5%

ur organic business obviously you will see new introductions, which would contribute around 4% to 5% to our growth and the assets that we have acquired, which today are not growing as far as the wav

14%

first of all we want to get into a market beating performance, the probiotic market is going at 14% we as an asset when we acquired which is going at around 8% to 9%, we would like to get into a gr

“I just want to understand what is the recipe to success that we currently have and how do we believe what makes us believe that we will be able to do what none of the others in India seem to be able to achieve, what is the competitive advantage the right to win?”

“I think as far as US is concerned so far the only thing we will maintain is the success is being extremely guarded and conservative right, that is the major difference between us and some of our peers, we are not kind of anywhere pursuing a strategy which disproportionately increases our revenue mix of balance in favor of international markets and particularly U.S.”

“I want to understand your M&A strategy going ahead given that we have acquired few already in India, what is the focus, how should we look at it and overall how should we look at the entire growth aspect going ahead, what would be the key driver also and from M&A perspective, how much kind of traction we should expect?”

“There are a couple of opportunities as and when it comes there are one or two opportunities in the world of South Africa where it is a more generic, generic play, but as and when it comes we will be able to have more colour.”

“From a depreciation perspective there will be a impact of about 35 Crores to 40 Crores a year, we will be amortizing these brands over 25 years, that is first part.”

“Azmarda for the next fiscal because we are mostly importing and will have a lower gross margin, but as it comes out, as we go into domestic sourcing the gross margins will get better.”

“And the second question would be on the same line, so when you say you are not increasing the number of MRs but you are still trying to launch lot of products and you are still trying to get a lot of share, so where does that come from whether it will be from higher number of calls which MRs does in a day and will it also increase the product that he has to go to doctors?”

“Just the clarity on the margin guidance that you talked about next year, so if you take out Azmarda how you look at margin because Azmarda is clearly margin diluted, but excluding that how you are seeing it?”

“It will be very difficult to give you exact number, but I think Azmarda is not so sort of dilutive like Kunal said in an overall scheme of things no change.”

“Yes, I am talking about the EBITDA margin, it will not significant dilute the overall operations, but on standalone obviously will be EBITDA dilutive.”

Nikhil Chopra

23

Jason D'Souza

17

Lakshay Kataria

16

Surjit

8

Kunal Khanna

7

Cinderella

6

Ranveer

5

Anubhav

5

Moderator

4

Nikhil

4

Ranveer

Thank you for taking my question. My audio was disconnected for a minute, so maybe you might have explained it, just a repetition just wanted to understand that in Q1 was there any contribution of Sanzyme and CMO, US business?

Lakshay Kataria

I think Nikhil alluded to that fact , we had two months of revenues kicking in, February and March generally tend to be extremely soft, so the contribution from the Sanzyme portfolio was nominal and if you are trying to understand the fact that India market IPM grew at 10% versus J.B. growing at 30% and how much does Sanzyme add to make things much more clearer even without Sanzyme portfolio our growth would have the market beating and we would have been easily 20% upwards, so organically also without that portfolio we would have had almost 20% plus growth.

Nikhil Chopra

I think he had more question in terms of what was the CMO uptake, so CMO, we had some good orders in terms of not quarter two and quarter three were not great months, but quarter four we could see the demand coming back, but it was one of in terms of what demand came for the CMO business, but eventually we see some robust order book for the coming year because that business some of the geographies particularly Southeast Asia, Russia, Canada, Australia and New Zealand where we have been working closely with our partners, there we see robust order book going ahead, but if you look at standalone quarter four, the figures were uphill, which would not be the run rate going ahead, so that is what we want to clarify.

Nikhil Chopra

No. Sanzyme and Azmarda are outside of those seventeen products and I had shared that we have launched new products in the world of pediatrics, respiratory, metabolic, cardiology that is what we have done.

Ranveer

Just a last one if I can express, it seems that Metrogyl sales have significantly come down, you can confirm this?

Nikhil Chopra

No, it is more a seasonal trend. Overall I think Metrogyl we continue to deliver market beating growth and Metrogyl is a combination of 200 mg, 400 mg tablets and equally of ten preparations topical in the field of Metrogyl, so Metrogyl 200 mg, 400 mg and IV are more seasonal dependent, but equally the topical preparations that we have got maybe may be ANO-Metrogyl, Metrogyl P, Metrogyl gel, there are different formulations, which continue to grow.