Alkem Laboratories Limited (ALKEM) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. I welcome all the members to the 49th Annual General Meeting of the company. This meeting it being held through video conference in accordance with the circulars issued by the Ministry of Corporate Affairs and SEBI. The company has taken all feasible efforts under the current circumstances to enable members to participate through video conference and vote at the AGM. I hope all of you are safe and are in good health. I am attending this meeting from the registered office of the company. Before we start the main proceedings of the meeting, I would like to introduce all the Board members, who are attending on the video conference platform, Mr. Sandeep Singh, Managing Director of the company attending the meeting from registered office of the company. Mr. Mritunjay Kumar Singh, Executive Director of the company attending the meeting from registered office of the company. Mrs. Madhurima Singh, Executive Director of the company attending the meeting from registered office of the company. Mr. Sarvesh Singh, Executive Director of the company attending the meeting from registered office of the companies. Mr. Srinivas Singh, Executive Director of the company attending the meeting from the registered office of the company. Mr. Arun Kumar Purwar, Independent Director and Chairman of the Audit Committee of the company attending the meeting from his residence at Parel. Mr. Sudha Ravi, Independent Director of the company attending the meeting from her residence at Bhandara. Mr. Sangeeta Singh, Independent Director of the company attending the meeting from her residence at Colaba. Dr. Dheeraj Sharma, Independent Director and Chairman of the Nomination and Remuneration Committee of the company attending the meeting from the office at Rohtak. Mr. Narendra Kumar Aneja, Independent Director of the company attending the meeting from his office at Lower Parel. Mr. Sujjain Talwar, Independent Director and Chairman of the Stakeholders Relationship Committee of the company attending the meeting from Goa. Mr. Manish Narang, President, Legal, Company Secretary and Compliance Officer of the company attending the meeting from registered office of the company. Mr. Rajesh Dubey, CFO of the company attending the meeting from registered office of the company and other senior executives joining from their respective locations. The representatives of BSR & Company LLP as statutory auditors and Mrs. Manish Ghia & Associates secretarial auditors have joined this meeting from their respective locations. I thank all the members of the Board, auditors and senior management personnels of the company for joining this meeting over video conference. We have the requisite quorum present through video conference to conduct the proceedings of this meeting. Participation of members through video conference is being reckoned for the purpose of quorum for the circulars issued by MCA and Section 103 of the Companies Act 2013. The quorum being present, I call this meeting to order. I now request Manish Narang, Company Secretary to provide general instructions to the members regarding participation in this virtual meeting.

Thank you, sir. Dear shareholders, thank you for joining our 49th AGM today and for taking time to participate in today's AGM. Members may note that this AGM is being held through video conference in accordance with the Companies Act 2013 and the circulars issued by the Ministry of Corporate Affairs and SEBI. Facility for joining this meeting through video conference or other audiovisual means is made available for the members on a first-come-first-serve-basis. The company has not received a letter from any corporate shareholders for appointing representatives under Section 113 of the Companies Act 2013. As the AGM is being held through video conference, the facility for appointment of proxies by the members is not applicable, and hence, the proxy register for inspection is not available. The register of directors and key managerial persons and their shareholding, the register of contracts or arrangements in which directors are interested, have been made available electronically for inspection by the members during the AGM. Members seeking to inspect such documents can send their requests to investors at alkem.com. The company has provided the facility to cast the votes electronically on all resolutions set forth in the notice. Members who have not yet cast their votes electronically and who are participating in this meeting will have an opportunity to cast their votes during the meeting through e-voting system provided by the CDSL. Members can click on vote tab on the video conference screen to avail these features. Members are requested to refer to the instructions provided in the notice for a seamless participation through video conference. In case members face any difficulty, they may reach out on the helpline numbers provided in the notice. CS, Manish L. Ghia, Partner, Ms. Manish Ghia & Associates practicing Company Secretary, has been appointed as a scrutinizer for scrutinizing the e-voting process. I now wish to inform you that as per Section 145 of the Companies Act 2013, since the reports of the statutory auditors and the secretarial auditors, which are included in the annual report sent to you all in advance, do not contain any qualifications, observations and other remarks, which may have adverse effect on the functioning of the company. The said reports are not required to be read. The Chairman has received requests from a few members to register them as speakers at the meeting. Accordingly, the floor will be open for those members to ask questions or express their views. Once the Chairman opens the floor for question and answers, members can also post their views or questions in the chat box there on their video conference screen. Thank you. I now hand it back to our Chairman, sir.

Thank you, Manish. Dear shareholders. Good morning. It's my privilege to welcome you to the 49th Annual General Meeting of your company. In the Golden Jubilee year, offshore company it reminds us of the inspiring journey that Alkem has embarked upon over the past 5 decades under the visionary leadership of our late co-founder, Shri Samprada Singh, who played an instrumental role in the growth of your company. Our pursuit of excellence and dedication to innovation propelled us to move forward, enabling us to create a significant impact in India as well as more than 40 countries worldwide, impacting millions of lives. This commitment drives us to consistently deliver high-quality products across a wide range of therapeutic areas, ensuring their affordability and accessibility in various regions. I extend my heartfelt gratitude to each and every member of the Alkem family for their steadfast commitment. As we mark the 50th year since the incorporation of your company, I'm delighted to share that the company had payed a special dividend of INR 25 per equity share in addition to the interim dividend of INR 15 equity share, resulting in a total interim dividend of INR 40 per equity share already paid by the company. Furthermore, the Board had proposed to your approval a final dividend of INR 10 per equity share, resulting in a total dividend of INR 50 per equity share for final year 2022, '23. This reflects our commitment to sharing the rewards of the company's success with our valued shareholders. I am pleased to share that your company's performance in the financial year '22, '23 has been commendable. Despite the recession, despite global economic supply chain disruption and pricing pressure, your company's revenue from operational -- from operations demonstrated a robust growth of 9.1%, highlighting our resilience and a strategic focus. Our EBITDA margin is standing at 13.9% is having a scope of unwinding [ excepts ] operational efficiency and cost optimization. One of the standout accomplishments of financial year '23 has been the outstanding cash generation exceeding INR 1,000 crores with a robust net cash position of [ INR 2,127 crores ] at the end of the fiscal year FY '23. This financial strength, not only reflects our prudent financial management, but also empowers us to see strategic opportunities for future growth. Let me take you through our domestic business performance in detail. India business executed a robust secondary sales growth of 12.8% for the fiscal year. This exceptional growth led to a notable increase in our market share from 3.9% in financial year '22 to an impressive 4.8% (sic) [ 4.08% ] in FY '23. One of the cornerstones of our success lies in our ability to introduce new products that resonate with the needs of our customers and the market. During the year, our new product portfolio played a pivotal role in our growth story, contributing a remarkable 3.1% to overall growth. Transitioning to our international business. Despite the ongoing pricing pressures in the U.S. market, our U.S. business displayed resilience and achieved a growth of 7.9% in INR terms. Moreover, our other international business segments demonstrated exceptional performance with a robust growth of 18.9%. Notably, key markets such as Chile, Kazakhstan and Philippines significantly contributed to this outstanding achievement. During the year, we have filed 12 ANDAs and with the U.S. FDA and received 14 approvals, including 7 tentative approvals. We also now -- we now have a product pipeline of 173 ANDAs and 2 new drug applications submitted with the U.S. FDA. In terms of regulatory compliance, I am pleased to inform you that all our manufacturing facilities, supplying to the U.S. have received establishment inspection reports reaffirming our commitment to the highest quality standards and regulatory requirements. Your company, along with its subsidiary, Enzene Biosciences Limited has recently launched the world's first biosimilar, Cetuximab, a critical treatment for head and neck cancer, which is one of our testament to our dedication to innovation and patient centricity. Moving forward to the developments in the first quarter of financial year '24, we have observed several pivotal factors, encompassing the moderation of select raw material prices, easing of freight expenses and diligent cost optimization initiatives have contributed to our improved operational performance in quarter 1 financial year '24. As a result, we achieved an EBITDA margin of 13.1% for quarter 1 of financial year '24 against 7.9% for quarter 1 of financial year '23, the growth of which had been predominantly fueled by the robust performance of our international business. Though our business growth in domestic market was affected by the delayed onset of monsoons in certain regions of the country, we maintain a positive outlook for improved growth in the upcoming quarter. We recently launched the ophthalmology division catering to the eye care segment, demonstrating our multifaceted strategic pursuits for the product portfolio through strategic partnerships and volunteer programs, Alkem Foundation has made a meaningful difference in the lives of more than 40 lakhs individuals, bringing vital health care and education support to those, who need it the most. We have taken substantial steps to enhance carbon efficiency by reducing greenhouse gas emission by 14.5% through sustainable measures, such as transitioning to renewable energy sources and implementing energy-efficient technologies. Your company has integrated sustainability into its business strategy, highlighting the responsibility to the well-being of society and the planet. I am pleased to share that we have released our maiden sustainability report, a comprehensive outline of your company initiatives, progress and commitment to the sustainable practices. Before I conclude, I would like to thank our employees for their hard work and dedication. I would also like to take this opportunity to extend my heartfelt gratitude to our valued customers, esteemed business partners, suppliers, the medical fraternity and government agencies, banks, state governments for their support over the past years. Your unwavering trust, collaboration and hard work has been instrumental in your company's journey of growth and success. I would also like to extend my sincere appreciation to our Board members for their invaluable guidance and support. Finally, I thank our esteemed shareholders for your continued support and trust in Alkem. Together, we form a strong ecosystem that drives Alkem's progress. In closing, I'm humbled by the privilege of leading such an exceptional team and being a part of this remarkable journey, my best wishes for your health and safety. Thank you. As the notice is already circulated to all the members, I take the notice convening the meeting as read. Before we proceed, I am pleased to bring to your notice that as required under the Companies Act 2013, the company had provided you all the facility to cast your vote electronically on all resolutions set forth in the notice. As has been conveyed by the Company Secretary, members who have not cast their vote electronically and who are participating in this meeting, will have an opportunity to cast their votes through the e-voting system provided by CDSL. Members may please note that there will be no voting by show of hands. We now take up the resolutions as set forth in the notice. We will open the floor for any questions by members after all resolutions are tabled. Item #1, to receive, consider and adopt the audited stand-alone and consolidated financial statements of the company for financial year ended 31st March 2023 and the reports of the Board of Directors and auditors, thereon. Item #2, to confirm the payment of interim dividend of INR 40 per share of INR 2 each and to declare a final dividend of INR 10 per equity share of INR 2 each for financial year ended 31st March 2023. Item #3, reappointment of Mr. Mritunjay Kumar Singh as a Director. Item #4, the appointment of Mr. Sandeep Singh as a Director. Item #5, approval for amendment to the articles of association of the company. Item #6, ratification of the remuneration paid to Mr. Suresh D. Shenoy as cost auditor of the company for financial year 2022, '23. I would now invite the members, who have registered themselves as a speakers to ask any question and provide their comments, which may be limited to 2 minutes for each speaker and not to repeat the questions already raised by the earlier speakers. Members are requested to keep their questions brief and specific. To avoid repetition, the answers to all the questions will be provided towards the end. Before we go live with the question and answer session, here are some points to note for your convenience, kindly turn your video when your name has been called out, unmute yourself and proceed to ask the questions. Please mention your name and the location from where you are joining. I now request Mrs. Asha Lata Maheshwari to ask the question.

[Foreign Language]

[indiscernible]

Am I audible, sir?

Yes, sir. You're audible sir.

Thank you, sir. I [indiscernible] to further. I am honored to have the opportunity to address you all today. And I would like to express my gratitude to Board of Directors for allowing with this chance once again. [indiscernible] of Board of Directors for continuing this mode of communicating [indiscernible] and then allowing PAN India participation. Sir, I request you to continue good [indiscernible] web trend. I hope I'm audible.

Yes. Yes. You're audible.

I am satisfied shareholder of our company. And I must commend the management for the remarkable efforts in creating wealth of the shareholders, more particularly for minority shareholders. However, I'd like to raise a couple of concerns. My primary concern pertains to the implied [indiscernible] of savings on account of virtual mode of meeting. Will you include a [indiscernible] to allocate a portion of this for the welfare of the speaker shareholders, who hopefully participate in AGM as speakers, considering the valuable contribution and active involvement in the meeting. It will be a gesture of recognition to [indiscernible] along [indiscernible] among all momentum important festivals. So yes, can you provide the breakup of expenses on account of virtual mode of meeting and on account of physical mode of meeting if possible. I hardly request the Board to consider our proposal and explore the possibility of implementing the gesture of recognition and appreciation by doing so [indiscernible] it will reinforce the person repo between our company and receipt holders and contribute to overall wellbeing of corporate [indiscernible]. Sir, my next concern, what are the current strategic priorities for the upcoming years? How do this align with the long-term goal of the organization? Can you elaborate on expansion of lands on new market entry strategies that the company is considering? How does the company plan to stay competitive in the rapidly evolving pharma industry? [indiscernible] company manufacture and a drug for skin rashes and for urinary infection, if possible, can you share the name by e-mail or can call me over a call? My final concern is that company has been hesitant in supporting individual in need, including myself. I have shared my credential in the past and follow up consistently, but my request had not been considered. So not aiding differently [indiscernible] individuals being part of CSR activity that does my company hesitant in supporting me. I appeal for your support, Mr. [indiscernible], including Form 15CB. Your assistance would mean a lot of me. If I can't get help from a reputable company like Alkem, then whom can I turn to. I'm resending my credential after AGM with ID given in the site in the hopes of [indiscernible] consideration for design help and support. I want to clarify that I'm not taking hand outs of empathy or nor a sympathy. I valued by independence and self-reliance as a Chartered Accountant. And I hope you can understand and respect my desire to maintain their independence. Thank you for considering my request. I firmly [indiscernible] that with their support, I can make significant contribution to our organization and have a positive impact on society. I eagerly await a response and sincerely appreciate the time and attention you have given me today. Additionally, I would like to request the assistant introducing me to the [indiscernible] auditor, BSI & Company as a fellow professional, I tell you that [indiscernible] guidance would be instrumental in realizing our mutual goals. Finally, I [indiscernible] myself all [indiscernible].

Thank you [indiscernible]. The next speaker is Mr. [ Harshad Sawani ].

My name is [ Harshad Sawani ], I am from Mumbai. Sir, it is nice -- the balance sheet is very good prepared by our Company Secretary and entire team. It is very nice to get everything in the book. Sir, congratulation to entire directors and employees for the best pharma company of the year. Sir I'm surprised we are having 800 brands in our portfolio. It is very good. Congratulation for the same. We are 5th largest company in the pharma sector. Sir now we should come in #3, sir, at lease #3. Sir, now coming to -- sir my question is sir, we have 21.7% share in the export to U.S. market. Sir, my question is, will it affect our business because of the slowdown in U.S.? Sir now coming in Page #196, profit and loss account. Sir, employers' expense has gone up by 8.61%. Sir, how many new employees have been added in this current year? Item #9 in Page 196 profit and loss account. What is the meaning of profit attributable to owners of the company, INR 22.64 crores? Sir, on this Page 196, balance sheet, goodwill INR 413 crores. Last year, it was INR 403 crores. Then how you have derived this figure? Item 2, inventories. Sir it is very nice to note that from INR 3,005, it has come down to INR 2607 crores, which is very nice. But Sir at the same time, the trade receivable has gone up from INR 1,880 crores to INR 2,132 crores. It has gone up by INR 248 crores, 13.16% up. Sir, we need to reduce these figures. Sir, I want to know why the bank balance we are maintaining to INR 2,343 crores, while we request such a big amount? Page 164 interest cost. Last year, it was INR 38 crores, which has gone to INR 86 crores, up by [ INR 126 ] crores. Sir, my request on the Page 87, sir, there is unclaimed IPO, amount had gone INR 64,400 that was application money. Sir, this should have been going to the right person, who applied and trusted in our company. At the same time, unclaimed dividend has gone to like INR 20,112, so we should inform before transferring this to the shareholder. Thank you, sir, for listening.

Thank you [ Harashadji ]. The next speaker is [indiscernible] Elizabeth [indiscernible].

I think she's on some other meeting. We can move ahead with the next speaker.

Yes. Next speaker is Mr. Bimal Panchal.

Yes. My name is Bimal Panchal. I'm from Mumbai, Prabhadevi. Heartiest congratulations to the team Alkem for entering 50 years for operations. Sir, your opening speech, coupled with your Chairman's message and MD's message, and the management discussions and analysis from Page 35 to 53, which is the longest ever management discussion analysis I've ever seen, all are very optimistic and give complete insight of [ cancer ]. Sir, your CSR activities carried by the company are very well diversified and are -- can be filed in our vicinity. Further, our participations in Cancer Hospital at Muzaffarpur will give long-term benefits to society in large. On the occasion of Golden Jubilee year, I request you to consider issuance of bonuses and also the plant visit of the same. Sir no question from my side and I support all the resolutions and wishing all the best to the company in the years to come.

Thank you Bimalji. The next speaker is Ms. Lekha Shah.

I think we can move ahead and we'll call her name a little later.

Now, I'll call back Ms. [indiscernible] Elizabeth [indiscernible]. [Foreign Language]

[Foreign Language] Respected Chairman, Mr. Basudeo N. Singh; MD, Sandeep Singh, my other fellow directors, my name is Ms, C. E. [indiscernible]. I am speaking from Mumbai. First of all, I thank the Company Secretary, Mr. Manish Narang and his team for sending me annual report and also registering me as a speaker at my request, thank you so much. Now I go for the annual report, such a beautiful report with so much pictures, bags, figures and so much of information, at the same time, self-explanatory and adhering to all the norms of corporate governance. Thank you so much. I thank you all for the dividend, 50 years are going to -- are completed, so given us INR 50 dividend, very good per share of INR 2. I really wish you and thank you all from the bottom of my heart against an EPS of INR 82.3 Great. Now I congratulate for all the awards and a clause as listed on Page 7 to 9 and also the CSR work, I appreciate very much the CSR work, which is done by our company and the staff. Thank you so much. Now my queries. I go first to the ESG. My question is there's a lot of -- 5, 6 pages on the ESG, but I take it as one as whether you have gone for rating the ESG, like finance, we rate, have you gone for rating? If so, what is our score in the rating? And if it is very good, platinum plus, do you plan to list it on some dedicated ESG platform? Next is, we have 21,000 employees. What is the average age and the ratio of the women and physically-challenged persons. Number 3 is 40 countries, 20 facilities. What is the average capacity utilization of all -- like average you can give me a figure, not of each one. Number four, 5 R&D centers spread across the world with sharp focus on developing generics, et cetera, manned by more than 500 scientists. What is the average age of the scientists and the attrition level? What is the CapEx for the next 5 years for organic/inorganic growth? I am so -- I support all the resolutions. I'm so -- very proud of my Alkem as a shareholder and giving me an opportunity to be part of this great, great pharma company, which will be great, not only in India, but all over the world. With this, I thank you very much. I wish you very good health because health is wealth and maybe sometimes physical meet or a get together would be also welcome. With this, thank you so much and [Foreign Language].

Thank you. Thank you, ma'am. Next speaker is Mr. Satish Shah.

[Foreign Language].

Yes, sir. Please. [Foreign Language]

[Foreign Language]

Can you hear me sir?

[Foreign Language] please madam.

Myself Lekha Shah from Mumbai. First of all, very much thank you to our company secretary Manish sir and Divya ma'am for sending the AGM notice well in time, which is full of knowledge [indiscernible]. So I'm very grateful to our company secretarial team. Thank you chairman sir for explaining [indiscernible] the company. Congratulations for excellent work sir. Sir I pray to God that he always showers his blessings upon you. Thank for the dividend sir. And I would say congratulations [indiscernible] and participants of the Board [indiscernible] for the excellent [ current ] performance. And also [indiscernible]. Sir I have a couple of questions. I [indiscernible] what is the market share of generics products in the domestic market. My second question, what initiative [indiscernible] and reduce carbon footprint? Chairman sir I hope the company continue being able to achieve in the future. So [indiscernible] I strongly support all these resolutions for today's meeting and my best wishes always our company and its [ prosperity ]. Thank you so much sir.

Thank you, ma'am. Thank you. The next speaker is Mr. Gautam Tiwari.

Sir am I audible sir?

Yes sir. Yes Gautamji please.

Sir, in fact, a very, very good afternoon sir. We have been here with you since our IPO time and never missed any meeting of yours. So we have got deep interest, and we are proud of being the shareholders of Alkem Laboratories right from day 1. Dear sir good afternoon. Our respectable Chairman, Sir Basudeo Singhji; our MD, Sandeep Singhji; Mritunjay Singhji; then Madhuriji; Sarvesh; and Srinivas Singhji and other honorable dignified directors, CS Manish Narangji, Divyaji also is associate and team, Alkem Lab Limited. Myself Gautam Tiwari and participating at this meeting from Mumbai. Dear sir, the designing and layout of balance sheet is excellent. I would like to thank the secretarial team of Manish Narangji and associate Vidyaji (sic) [ Divyaji ] for timely providing me the notice and annual report. I would like to congratulate the Board and the management team on its remarkable performance and on its ever-evolving landscape. Dear sir, I thank the management for paying whopping dividend of INR 50 per share. Very generous dividend sir [Foreign Language] It is 2,500% and very few companies can pay like this compared to last year's INR 34 only per share, that is an increase of almost 50% this year. I hope the company continues to grow and reward the shareholders with higher dividend in future also. I wish the company all the best and continue -- and the company should continue its growth trajectory as it is continuing till date. Sir, I support appointments -- statutory appointments of all directors and all resolutions also for which I have already voted in advance. Sir, I'm a shareholder of your company, as I said, from IPO time. And we have got total confidence, trust and faith in the management under your supreme leadership and therefore, our lifetime support is always I assure you with -- herewith. Sir, I have got few queries in my mind. First is medium manufacturer of Alkem Laboratories. Sir, medicines which we are manufacturing in Alkem Laboratories without immune -- immunity booster and [ uprise ]. So [ A to Z ] are needed by everybody. So what are we doing for maintaining and delivering of this? And what is the revenue that we get and sales volume and the profit generated from these medicines. Sir secondly, which of our top brands constitute more than 50% of its sales volume. Sir, how much is company's budget for R&D spend and CSR spend during the current year sir. What is our percentage of product under price control. Sir, what is the attrition rate of our employees and overall capacity utilization of our manufacturing plants? Do we depend upon China, sir, for raw material even now? And how many new launches and patents are -- have been approved and how many are in pipeline? And lastly, how many of our subsidiaries are loss-making and what is company's strategy for them. But I pay and wish for the...

Yes. Thank you, Gautamji...

Sir you can see my video. Last sir, I pray and wish for a long, happy, healthy wealthy life and every compliment for -- good compliments for the upcoming festivals like Dussehra, Diwali, Navratri, Ganpati, and New Year and Christmas and wishing all the best under your supreme leadership and our lifetime support is assure herewith. Thank you very much sir for the rest of the business that you have been -- shareholders. Thank you very much.

Thank you, again. Thank you Gautamji. Next speaker is [ Asif I. Modi ].

We can directly move to Mr. Bharat Shah.

Mr. Bharat Shah, please.

Chairman sir [Foreign Language]

[Foreign Language]

They are in some other meeting. We can go on to the next.

Mr. Dinesh Bhatia.

Am I audible?

[Foreign Language]

[Foreign Language]

[Foreign Language]

Sir, first, the Chairman [Foreign Language] Congratulation, all the best [Foreign Language] Congratulation, excellence [Foreign Language]. All the best. Thank you, sir.

Thank you, Dineshji.

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language] Sir this is the 50 year Golden Jubilee sir. My best wishes. And I thanks all the company [indiscernible] departments and I'm very oldest shareholder. My humble request for the factory visit sir. This is our 50 years [indiscernible] why don't you declare a bonus sir, and I was asking for a bonus 1:1. Thank you very much. And nothing more to add. I end my speech, praying the God. Sir thank you very much. Thank you very much sir.

Thank you sir, thank you. The next speaker is Homayun Beruz Pouredehi.

Can you hear me sir?

Yes, ma'am we can hear you.

Yes I just want to say. Well, we have been a shareholder right from day 1, even before the company was formed, we used to support you and we used to attend your analyst meet and all that. Now sir, just a few questions. This branded generic doctors are not supposed to prescribe, how would it affect the company? I personally want branded generics. Number 2, Alkem makes our nation proud. One more -- another thing sir, we want to know that how many drugs are under DCPO (sic) [ DPCO ]? Are they expanding or they are limited. I want to know that. So we are expanding, [indiscernible] prices also rising, but actually, as inflation is here prices are definitely going to rise. What about research, how much you're spending on research, how many scientists are working at our research centers, I would like to know. And so you have some plants in the north, right? Have they been washed by the floods? I would like to know. We wish our company all the very best. Looking forward to better days ahead. Of course, we are all [indiscernible] very well. The scientists are doing very well. We know your management right from day 1. Everyone -- we thank the secretarial team for putting me in the speakers portal, Madam Divya and honored secretary. Thank you very much, sir. I wish our company all the best. I don't want to take up more time because there are many other speakers also. Goodbye.

Thank you. Thank you ma'am. Next speaker is Mr. Mahesh B. Makhija.

Sir can you hear me? This is Mahesh Makhija from Mumbai.

Yes sir, please. We can hear you.

Very good afternoon to respected Chairman, Shri Basudeo Singh; Managing Director, Sandeep Singh and other esteemed Board of Directors and my fellow shareholders. First of all, let me give congratulations to the entire Board of Directors, the entire management team, and entire staff of Alkem for the successful journey of 50 years and creating a leading global pharmaceutical company. I hope this momentum will continue. And with the dedication and hard work of our management and staff, Alkem will conquer greater heights and achieve more milestones in years to come. This is the 50th year of operation. I hope our company will strive to achieved the highest-ever revenue from our operations as well as highest earnings to reward the shareholder in the Golden Jubilee year. Our Board can consider rewarding our shareholders with a bonus of split as the Board seems appropriate issue and also simultaneously splitting the face value of INR 2 share to INR 1. The decision is rest with the Board. Now let me have some few queries, how is the company is doing in this current fiscal year '23, '24 as compared to what was in the past '22, '23. I hope profitability is coming back, and we'll close the current year -- Golden Jubilee year with the highest profit revenue from the operation from both domestic business as well as the international business. There are 1 subsidiary, which is in the limelight is Enzene Bioscience. I think the Chairman also remarked about the new products which have been launched. 6 products, I think, have been launched as per the annual report by Enzene Bioscience in a -- biosimilar product. Sir there are -- I just wanted to have a small query on this. We recently raised funds from a leading health care investors in this company. What are any plans are there for listing of Enzene Biosciences [indiscernible] demerging this company from being a subsidiary to listing it in future. Maybe not now, maybe 2, 3 years down the line, as we've already -- from 100% subsidiary, we have got outside investors. So I just want to know the thought process on that. And I again wish Alkem all staff for getting forward the vision of our founders for the next 50 years and hope our company crosses the milestone of INR 15,000 crores fast then INR 20,000 crores in revenue. And also very soon, we'll see our company market cap crossing INR 50,000 crores from the present INR 44,000 crores. So all the best to the company, and I wish to personally thank Mr. Manish Narang and Madam Divya for sending me the annual report and allowing me to speak at this forum. Thank you, and all the best for the next 50 years.

Thank you Maheshji. Next is Shobhana Mehta.

Can you hear me sir?

Yes madam. Yes we can hear you.

Respected Chairman Basudeoji and the Shri Sandeepji [Foreign Language] Good morning, everyone. [Foreign Language]. Sir I wish you all the best for the future success. [Foreign Language].

Thank you. Thank you, ma'am. The next speaker is Mr. Bharat Shah.

[Foreign Language].

Thank you, Smitaji, thank you Bharatji.

[Foreign Language].

Thank you. Thank you Bharat [Foreign Language] Thank you. Next speaker is Mr. G.R. Balaji.

We can go on to the next.

Mr. Ashish Shahkar Bansal.

We've unmuted him. Mr. Bansal is unmuted.

Mr. Bansal?

You can go next.

Mr. Bharat Negandhi, please.

He's not with us.

Mr. Prabhojeet Singh Sahani.

He's not with us either.

Mr. Tushar Sodha.

A very good afternoon to all. Am I audible and visible?

Yes sir. Yes sir, please sir.

Very respected Chairman sir and esteemed Board of Directors. My name is Tushar Sodha, and I have joined our virtual AGM from Mumbai. Both Secretarial and Finance departments deserve appreciation for excellent presentation of [indiscernible]. Chairman sir I had about 9 to 10 queries regarding financials of our company. And I'm very happy to inform that I have received accurate and detailed reply for all my queries from the concerned departments and hence, I'm not repeating the queries here. Alkem Laboratories journey from a marketing sales driven organization to manufacturing and now to biotech and biosimilars has been comprehensive and extensive. The glorious journey of last 50 years is a testament to resilience, relentless pursuit of excellence and passion for growth. Kindly share with us what exciting journey awaits the stakeholders for the next 10 years. Thank you, Chairman sir, for giving me this opportunity to express my views. Thank you so much, sir.

Thank you. Thank you Tusharji. The next speaker is Mr. Sharad Kumar, please.

Can you hear me sir?

Yes, yes we can hear you sir.

This year, we have done very good thing is that we have got a good foreign exchange. And our revenue is higher this year. But at the same time, what has happened is that our expenses are also very high. And the reason is very simple, sir, because last year, inventory was negative so that the expense were reduced. And this year, what has happened, the inventory is positive, expenses are increased. So total difference is coming around INR 600 crores. And what has happened? Because of that, our profit has come down by -- from -- by INR 600 crores and the earning per share has come down from INR 132 to INR 82. And another thing sir, what I observed is that compared to our profit, our employment cost in consolidate is doubled. So what is my only opinion and the confusion for this [indiscernible] is that remain in profit, we must see that how we control our expenses and the rest of the things are maybe, okay, I am very happy with the Alkem from the IPO and your balance sheet is also received in time. So I'm really happy and you have given me opportunity, your people have just phoned me so I joined the meeting because I'm [indiscernible], I'm outside my house and joining meeting from mobile, normally, I join the meeting from iPad. So thank you very much all the people of your [indiscernible] department who called me to join this meeting. Thank you very much, sir.

Thank you. Thank you, Sharadji. The next speaker is Ashish Bansal. Next Speaker is Bimal Agarwal.

Yes. Good afternoon to everyone. First of all, I thank the Company Secretary management staff and the shareholder. I had a query but one had asked that, it was -- my question was already asked by the previous speaker. I got nothing to say now. And I want to know only 1 thing, all -- 100% share the dematted or no. That's all from me. Thank you very much. And again, I thank the company secretary and his team. They are -- all have said regarding -- they're really good. Thank you very much. That's all from me. Thank you very much.

Next speaker is Ashish Bansal again now. Ashish Bansal. This is our last speaker now. Ashish are you there? Yes thank you, shareholders now.

With this, we conclude the question-answer session. Now I request Mr. Sandeep Singh, our Managing Director, to answer the questions.

Thank you. Good afternoon, everyone. I will try to take most of the questions and answers. But if I miss anything, you all can contact Divya or Manish, I'll do my best. Thank you. So there was a question on unacclaimed IPO application and why it has been transferred to IEPF, I think those are mandatory laws, we'll have to do it. It's a law. Of course, reminders were sent in the past. We have noted the dates, but it was not retrieved. So this is as per the provisions of Section 124, 125 of Companies Act, we had to do this. So this is the law, we have followed the law. There were some questions on branded generics and a lot of questions we read on NMC guidelines. So the good news is, yesterday, there was an article in the newspaper that those NMC guidelines on generics have been put in abeyance right now til further notice. On DPCO percentage, what percent of portfolio is covered by DPCO, it is around 32%. There was also a question on the impact of floods on us. So we had floods at Ambala where the cost value was around INR 2.5 crores, but I'm sure it's in short and there's nothing to worry over there. There was a question on number of employees in R&D we have. So we have 400 employees right now in R&D. A lot of questions on bonuses, but as of now, there are no plans. At appropriate time, of course, we will take it up. There were some questions on immunity booster, but we should -- we are not doctors. We don't want to tell you what to take, I think, its best prescribed by a doctor. Our top brands are Pan, Pan-D, Clavam, Taxim, A to Z, Sumo, GEMCAL and Uprise. Somebody asked what is a percentage of R&D spend is? It's 5%. Attrition rate was another question. We have 26% attrition in the field and in non-field, it is around 14%. CSR, again, we spend what is mandated by the government. We spent 2% of average profits of the last 3 years. That was a very interesting question on China impact, how much do we import from China? What is the -- so it's around 9% of our imports is from China, which is a small percentage. Question on loss-making subsidiaries. So they are because of strategic reasons. Enzene is a new subsidiary. We all know that. The TPN is because of St. Louis subsidy over there. And then Germany, we have recently started. Kenya was because of exchange rate. And Netherlands is basically a holding company. So looking at profit or loss does not make sense there. There's a question on manpower increase. Our manpower increased by 800 people last year. And there was a question on goodwill. So goodwill is there because -- on the balance sheet because we have acquisitions we made in U.S. and Australia and in Indian subsidiaries, which we acquired, Cachet in Kenya and Enzene and the change in goodwill is because of the exchange rate changes. Very important question of strategic priorities. So very clearly, our strategic priorities. One is on cost containment because we have low EBITDA compared to industry. So that's #1 driver. Second, we're also betting on the future. So Enzene becomes very important. We also identifying some other growth avenues, which we will declare in the next few months, which we could target. There's a question on working capital increase. So that's because of trade receivables was increased due to increase in U.S. sales, so pretty much in line. Questions on ESG rating. So earlier, we never used to submit ourselves to ESG rating. So therefore, the rating was low. But right now, we have started an initiative in Alkem where we will be looking at this. And next year, you will see a much, much better improvement there that the company is really geared up to change his ESG rating. And not only do it for rating, but do it because it's the right thing to do. Yes. With this, I thank all of you. Thank you very much.

Thank you, Sandeep. Members may note that the e-voting on the CDSL platform will continue to be available for the next 30 minutes after the closure of proceedings of the meeting. Therefore, members who have not cast their vote yet are requested to cast their votes. [Voting]

The resolutions as set forth in the notice shall be deemed to be passed today subject to receipt of requisite number of votes. The combined results of voting will be announced by Mr. Manish Narang, our company's Secretary latest by 29th of August, 2023. And the same will be informed to the stock exchanges and disseminated on the website of the company and on the website of the CDSL. We are thankful to all our shareholders who have joined us in the meeting by video conference. I hereby declare the proceedings as closed and the meeting shall be concluded after e-voting time over, that is 30 minutes from now. Thank you, everyone, and see you next year.