Lupin Limited (500257) Earnings Call Transcript & Summary

Good morning, shareholders. Hope you all are doing fine. We warmly welcome you to your company's 41st Annual General Meeting. In compliance with the guidelines issued by the Ministry of Corporate Affairs and Securities and Exchange Board of India, this AGM is being held through the video conferencing [ to ensure ] other audio/visual means. Live streaming of this meeting is being webcast. We will now commence the proceedings of the meeting. Mrs. Manju D. Gupta, honorable Chairman of the company, has taken the Chair; Mr. Vinita Gupta, CEO; Mr. Nilesh Gupta, Managing Director; Mr. Ramesh Swaminathan, Executive Director and Global CFO; Mr. Jean-Luc Belingard, the Independent Director and Chairman of the Nomination and Remuneration Committee; Mr. K.B.S. Anand, Independent Director and Chairman of the Stakeholders Relationship Committee, Dr. Punita Kumar Sinha, Independent Director and Chairperson of the Audit Committee; and Mr. Mark McDade, Independent Director, are present. I wish to report to the honorable Chairman that the required quorum for the meeting is present. I'm sure all the shareholders must have received the informative Integrated Report of the company. And I'm sure you must have liked it. Since the AGM is being held through video conferencing, the facility for appointment of the proxy by members is not available. All the [ stated ] registers and the certificate from the [ secretarial ] auditors certifying that the various employee stock option plans of the company have been implemented in accordance with the SEBI guidelines and the resolutions passed by the shareholders, and they are available for inspection. The company had offered e-voting facility to shareholders to cast their votes electronically on all the resolutions, which are set forth in the notice dated tenth July 2023 [ conveying ] AGM. The remote e-voting process, the remotely voting period commences on Sunday, which is 30th July 2023, at 9:00 a.m., and it ended yesterday at 5:00 p.m. During this period, members who are holding the shares as on the cutoff date, which was 27 July 2023, were eligible to cast their votes electronically. Members who had not yet exercised their vote through remote e-voting can cast the awards now through the remote e-voting facility during this meeting. And the same shall remain open up to the 15 minutes after the conclusion of the AGM. Services of the National Securities Depository Limited, NSDL, have been engaged to provide the e-voting facility. Ms. Neena Bhatia, the Practising Company Secretary, the -- she was appointed as the Scrutinizer by the Board, and she will ensure that the e-voting process is conducted in a fair and transparent manner. Mr. Bhatia shall submit to the Chairman her report of the combined voting results for each resolution. The results shall be submitted. The results will also be intimated to the BSE and the NSE and hosted on the website for the company and also on the website of the Link Intime India Private Limited over the Registrar and Share Transfer Agent of the company. I now request the company Secretary to read the notice conveying the AGM and the Auditor's report. Thank you.

Thank you, Mr. Makharia. The notice of the AGM, along with the explanatory statement, may kindly be taken as read and was sent to the members on their recent e-mail IDs. The Auditor's report, which forms part of the Integrated Report, has also been circulated to the members, along with the notice of the AGM, and that may also be taken as read. I now request Mrs. Manju D. Gupta, honorable Chairman, to kindly give you the speech. Thank you.

Dear shareholders, namaste to all of you. It gives me great pleasure to welcome you on our 41st AGM. I hope you and your families are well. While the last few years have been challenging, FY '23 was a year of transformation for Lupin in many ways. We've worked on several key initiatives and two critical steps to make our business a lot more vibrant. I'm happy to share that we have been able to achieve positive outcome on most counts. And we are now looking at a period of growth for the company, both in revenues and in profitability. Our two critical objectives were to get India back to double-digit growth and to get the U.S. back to growth, backed by delivery of meaningful products, which is our [ fleet force ] expansion, new product portfolio and continued investment. Our India business is now set to consistently outperform in the Indian pharma market as we continue to grow in our key therapy areas. We have also had some good success in our [ adjacencies ] in India with our [ forage ] in diagnostic, digital health and neurorehab. Our U.S. business has successfully improved through each quarter of FY '23, and we are now set for a period of strong double-digit growth and good profitability. This is driven by our ability to launch multiple meaningful products, including important complex generics like Tiotropium, the first DPI from India to be approved for the U.S. [ DBG ] also had a strong success on the compliance front, although there is still room to improve. Our Somerset site in the U.S. was an important clearance. And more recently, our approval of Pithampur Unit 2 helps lift the [ burden later ] from the Goa and Pithampur plant. Important approvals, like those for our Nagpur injectables plant, provide new growth opportunities. We have also made very good progress in the ESG front and one of our CSR initiatives. We are committed to taking [ DBG's ] legacy to the next level. And I can say with confidence that we are well on our way. I thank you for your continued support, and we look forward to a successful FY '24. Thank you.

Thank you. Now I request the moderator to invite those shareholders who have registered their names to express their views on first come, first serve bases. And to ensure that fellow shareholders get an opportunity, request the speakers to limit their comments to under 2 minutes, please. Over to the moderator. Thank you.

We will now proceed with the speaker shareholders one by one. Kindly ensure that your video is turned on while delivering your questions. Kindly keep your speech within a 2-minute time frame. Firstly, I would like to invite Ms. [ Shobna ] Mehta to share her thoughts.

Hello. Hello. Hello.

You're audible.

Thank you very much. Respected Chairperson, Manju ji; CEO; Ms. Vinita ji; MD, Sri Nilesh ji; CFO, Sri Ramesh and Ms. Punita ji and [Foreign Language], namaste and good morning, everyone. [Foreign Language] I wish you all the best for the future success.

Thank you, ma'am. Now I would like to invite our next speaker shareholder, Mr. Shailesh Mahadevia, to share his thoughts. Go ahead, please.

I'm waiting for my video to start. I believe now you can see me?

Yes.

Respected Chairperson, the entire Board of Directors and all the members of the management team, [Foreign language] to all of you and particularly to our Vice Chairperson and remembering our founder, with whom I had the first meeting after the IPO here in Mumbai. And I remember those days, and I can just compare where we spend today after all these excellent work. Now, I would like to appreciate the excellent work done by the company, and it has been very well reflected in the annual report, which has been presented to the shareholders. The report is integrated, which gives an idea what is the addition of 6 capitals compared with beginning of the year and at the end of the year. You have also given BR and SR report, which gives a lot of information, but I would have preferred if it had been on a consolidated basis instead of standalone basis. Then, we have also noted that the exports which we had on standalone basis, was 40% of our entire revenue. Sir, can you confirm whether for consolidated also the amount remains the same? And sir, during the year, I'm happy that the promoters have increased their investment in the company to some extent. And I will very much enjoy and appreciate if you go on continuously adding your investment in the company year after year. My next question is that our ownership of shareholders is also very widely held in almost 25 states Also, the majority of that is in Maharashtra, 30%, and Gujarat, 20%. Sir, I would like to appreciate the wide holding of our company's investors throughout India. Sir, I wish to also appreciate all-round activities in all the diseases for which we are providing our medical treatment, either directly to the patients or through various agencies. I appreciate the entire report, and therefore, I will not like to repeat. But I would like to inquire our progress in biosimilar medicines that we may have made. And then I have some questions. First is regarding the attrition rate. Sir, attrition rate is as high as 24.47%. Sir, it is higher than what it was in the earlier years. May I know what steps are being taken by our company, so that we may not lose our trained and skilled personnel? My next question is regarding our factory in Jammu and Kashmir. I'm happy. Sir, is this company in Jammu and Kashmir making some progress in view of the policy of the government of India to encourage people to be in [ that ] state? Sir, my next question is that we are hearing a lot of advertisements supporting our activities in Ayurvedic fields. We have so far introduced 3 products. Kareena Kapoor, Anil Kapoor and some other actor, I think, Hrithik Roshan. They are our brand ambassadors. They are seen all around, even when we see the -- our CNBC TV18, even there, they are visible. So may I know what results we are likely to get, and what we can expect in the next 2 to 3 years? This, of course, is a long-term plan. I would like to understand from you. And sir, similarly, I believe in the last 1 or 2 years, we have started diagnostic business. That is very widely required throughout India because it is not covered by in many areas of the country and the city. And therefore, any effort on your part will be of great assistance to the country and to the people at large. And before I conclude, I must appreciate the CSR work, which is being done by our company, very often in the areas from where we are operating our factories. And this particular expense has a multiplier effect. If you spend a lets say, INR 10 crore, its benefit to the society is very open, as high as 5 times. That is the multiplier effect, the ripple effect. Sir, have you made any economic impact on the society as a result of our expense in CSR activities, and what multiple we are earning? So that will give us the exact idea of the benefit of our work as such. I also appreciate that all our factories in 4 foreign countries are doing well. Particularly, I would like to know about our activities in Sikkim, that particular area where we are making our expansion with all the benefits which are available in Sikkim. And with this, I must appreciate the work of our Managing Director and CEO, our Finance Minister and our -- all of our management team members. With this, I also take the opportunity to appreciate the work of the company secretary and their team, who are, I must say, after me, whether I've received a report or not, whether I'm joining or not. Well, it's a pleasant exchange, and they are the link between the management and the shareholders on the other side. So I appreciate all of this and -- with all my best wishes to our company in the times to come, which almost has become our way of life. And I, therefore, wish all the best and namaskar to all of you. Thank you very much, sir.

Thank you, sir. Now I would like to [ invite ] our next speaker shareholder, Ms. [indiscernible] to share her thoughts.

Hello.

Yes, ma'am, you are audible, you can continue. .

I am visible, yes?

Yes, ma'am.

Yes. Okay. Okay. I go to the formal part. Respected Chairperson, Madam Manju Deshbandhu Gupta; CEO and MD, Vinita Gupta and Nilesh Gupta, other members of the Board, my dear fellow shareholders, who are attending this meeting, I am Mrs. [ C.E Mascarenhas ]. I am attending from Mumbai. . First of all, I thank the company's Secretary, Mr. R.V. Satam and his team from [ account ], et cetera, for sending me an annual report and also registering me as a speaker and also giving me this platform where I could operate easily. Now, I come to the annual report, is a very beautiful document with facts and figures and also, at the same time, self-explanatory and adhering to all the norms of corporate governance. Our working is very good, in spite of very difficult times, domestic and international. And we are blessed to be a 200% dividend, that is INR 4 per share, and a good market capitalization. So keep it up. Maybe you can bless us next year with a bonus, if possible, the Board feels. I congratulate you all for the awards and accolades, which are all documented on Page 156. Congratulations for all of them, good CSR work. Keep it up. Now my queries. What our ESG, what is the rating score of ESG? And on which platform it is already listed, international or domestic? Number two, in U.S., our rating is third. And in Indian pharma market, we are fixed. In how many years we will be getting #1 position? We have employees of about, say, 1,766, and 9% of them are women. So I would like to know what is the percentage for we have physically or mentally challenged persons. What is the percentage? Number four, our R&D spend was last year, [ INR 14,024 million ]. And this year, it is 12,800, a little bit down. Could you just throw some light on it? Our R&D and innovations, what is the average age of the staff there? And what is the attrition level in the R&D.? We have -- another question is, we have 911 active patents, 463 [ ANDAs ] filed with U.S. FDA until March '23. What is the position as of now? Next is how many new products, drugs we have launched in Indian market, and how many of them are under the DPCO? Next, do we have CDMO business is -- what is the percentage of the total business? Rest, future roadmap, what we see as our company, looking in 5 years' time? I support all the resolutions. I wish my company all the best, may it go from strength to strength, and may God bless all of you, all the management and the staff with very good health, so that health is wealth. And we will get still better results in the years to come. With this, thank you, may God bless you. Namaste. Now Mr. [ Mascarenhas ] will speak.

I'm the next speaker in the queue. Can I proceed?

Yes, sir, yes, sir, you can proceed.

Respected Chairman sir, very distinguished members of the Board and my fellow shareholders, good afternoon to you all. My name is [ Alonza ] Mascarenhas. I'm one shareholder who has participated practically in all the AGMs held physically in the previous years. And I'm delighted [Audio Gap] better results year after year. I think this year's result is excellent, far excellent, as shown in facts and figures in the balance sheet. You have started well by saying empowering health, a very good caption to start with. Our results are excellent, as shown by PBT and PBT, which has gone phenomenally up against the loss of last year, very good sale. And you have declared a very handsome dividend of 200%, very good, keep it up. Our results have gone up substantially. So we are a good bonus candidate. So I would like to know when -- how many more years we have to wait for getting a good bonus because our results are very much higher than the capital? You have [ done ] very well, given 10-years financial highlights, [ hitting ] all the parameters of financial growth of our company. Now my question is -- are as follows: First, how many new products have been launched during the year, and how many are there in the pipeline? Then, we are exporting to many countries of the world, so I would like to know, especially the dollar terms, which we are getting in dollar term, because the rising dollar is more than the falling rupee. So that fluctuation, dollar-rupee fluctuation, how much are we gaining by way of dollar revenue, I would like to know? And we have many subsidiaries. Which are the most profitable subsidiaries? And furthermore, any acquisition -- now is the time of acquisition. So any thoughts on acquisition of pharma companies? I would like to know. Now I'm going through a very serious question affecting all shareholders, that is transfer of funds by way of dividend, unclaimed dividend and shares also. If dividend is lost, something is lost. But when shares are lost, everything is lost. Is it going to the government investment protection fund? Third, it is our [ bond ] and duty of the company to see that the shareholders hard-earned money is not affected. Even I, who has put in more than 30 years, like other shareholders, many of these parts may go to the protection fund. So I request, humble request to you, and I think Punita is also there, who can take our dividends forward to the government. So please, hear our prayers and our cries and see that, that dividend and more importantly, all shares are not transferred because you don't get social -- senior citizen don't get adequate social security as we get abroad. So please [ condition ] and help us in this hour of need. With this, sir, I've given all my thoughts, and I wish our company, especially the family, the Gupta family, all the best. And more importantly, all the directors and more the employees, who are the cornerstone of this company, I wish each one of you very good years to come. And festive season is around the corner. So I wish each one of you happy festive season. With this, madam and the Board of Directors and my speech, wishing you all the best in the years and days to come. Thank you very much. God bless you and our [ company ].

Thank you, ma'am. Thank you, sir. Now I would like to invite our next speaker shareholder, Ms. [ Shmita Brasa ], to share her thoughts.

[Foreign Language].

Thank you, ma'am. Now I would like to invite our next speaker shareholder, Mr. Bharat [ Shah ], to share his thoughts.

[Foreign Language].

Yes, sir. you can continue, sir.

[Foreign Language].

Thank you, sir. Now I would like to invite our next speaker shareholder, Ms. Lekha Shah, to share her thoughts.

Can you hear me?

Yes, ma'am, you are audible, you can continue your speech.

Thank you, sir. Respected Chairperson, Board of Directors and my fellow members, good afternoon to all of you. Myself, Lekha Shah from Mumbai. First of all, I am very much thankful to our secretary, especially [ Ramakant ] ji, for sending the AGM notice well in time, which is full of knowledge, facts and figures in place. Thank you ma'am for explaining [ as well as the ] company. Congratulations for excellent work, ma'am. Ma'am I pray to God that He always shower His blessings upon you. Thanks for the dividend. I would like to thank all the personnel of our company receiving awards and recognition by your plan during the year '22 and '23. And also, our companies doing very well, especially in the CSR activities. Ma'am, I would like to ask few questions. My first question is, the domestic market, what's the market share of generic medicine? My second question is, what's the action our company takes, make product quality and safety complaints at the manufacturing site? So I hope the company will continue with your conference meeting in future. So I strongly support all the resolutions for today's meeting, and my best wishes to all of [ you ] in the company and its prosperity.

Thank you, ma'am. Now I would like to invite our next speaker shareholder, Mr. Vinay [ Bere ], to share his thoughts.

Hello, are you able to hear me?

Yes, sir. You can continue your speech, sir.

Yes. Chairperson, Mrs. Manju Gupta; Vinita and Nilesh Gupta, Mr. Ramesh Swaminathan, other directors present at today's AGM, company executive shareholders, my name is Vinay [ Bere ], and I'm a company shareholder, speaking from Mumbai. Thanks for a very detailed annual report that you have made out. I've just got a couple of questions, two or three questions, to understand the present and the future of our company better. . For the first question, I would like to refer to Page 143 of our annual report. Page 143 shows Lupin's therapy-wise ranking in terms of market share. I suppose this ranking has been shown at a global level. So that was the first point. The second point is that we're very happy that the anti-TB ranking is 1 at a market share of 58.9%. That is very encouraging. But just look down the other therapies that have been listed there, they are sub 10%. So my question here is that, do we have an ambition to increase our market share in the remaining therapies to the levels beyond 10% or better in terms of the ranking? That was the first question. The second question is on the next page, that is Page #145, where we are talking about [ group ] in diagnostics. Now in this, we are a -- we've a set of labs for -- national reference labs for diagnostic test. So considering that the lab test markets are large in number and most of them are midway in terms of this, my question here is that should we not be going in for some USP test or some USP facilities at these laboratories? So otherwise, you can tell us how these labs are shaping up in terms of revenues. And what is the approximate margins that we expect from these labs? And the final question is on the information technology. This, of course, is a very general question. If the figures are not available, you can send it separately on mail. What is the CapEx and the OpEx spend on information technology in the concluded financial year? So these were the few questions that I wanted to list out by understanding our present and future better. And I will close with support for all the resolutions. I wish the directors and employees all the best. Thank you for giving an opportunity.I must mention here that Mr. Satam, Mr. [ Ramakant ] and all these colleagues have taken a lot of effort to ensure our participation. They've done a great job. And including all other colleagues, I thank them, too.

Thank you, sir. Now I would like to invite our next speaker shareholder, Mr. Anil Parik sir, to shared his thoughts.

Chairperson Madam Manju Gupta, CEO, Vinita; and MD Nilesh Gupta. Good morning to you all, and I hope you all are safe and fine at your respective end. I always remember our late Chairman, Mr. Desh Bandhu Gupta, who has laid a strong foundation of our loud company. And it's now our job to make it more stronger with every year passing by. And I'm very much sure that you all will come to your best to make our company stronger and stronger every year. Chairperson Madam, everybody has praised our CS team, [Satamji] and [Ramakantji] for their excellent work as far as investor relations is concerned. But I was [ deprived ] of from Satamji and Ramakant, nobody has called me up till now for assistance of any kind and for attending this meeting. I expect from them to do much better next year, if possible. Madam, I am joining with the previous speaker, [ Maratha and Mikasa ] for holding meeting physical because these VC meetings, in my opinion, is just a formality and no meeting, no greeting for all work done very good by you and your team. So it's my humble request, please have a physical meeting because that's my fundamental right to have a physical meeting. Chairperson Madam, I have a few questions now. 1 minute. If I see our directors' report, we have made completely turned around as far as consolidated revenue is concerned and profitability. Last year, it was INR 1,372 to INR 5 million was the losses, and you have turned around to the profitable venture. So many congratulations to you all. I also would like to thank you all for declaring dividend of 200%, that is INR 4. I expect to do much better in that front in future. My question is, we have 28 subsidiaries and joint venture. Are all these profitable ventures? Or are there any losses in any of the companies I would like to know that from you. Then my question relates to R&D expenditure, what R&D expenditure you are targeting at this year? And also, we have made acquisition in France, acquisition of Medical for injectables in euro. So how much it will add to our top line and bottom line that I would like to know. Also, in '24 opportunities and prospects are there for our products of [ G. Speedywa, D. Tarunawil ] and other first to market these products, which you are set to launch in the U.S. I would like to understand as far as this product is concerned, how much it will give us benefits. And also, I have one question relates to -- throughout the year, we have filed 28 products in the U.S. and 10 outside of the U.S. So what are these 10 countries outside of the U.S., you have filed products and when it will be launched that I would like to know. Further, I don't have any questions to ask you since I'm very much pleased with the performance of the company. I would like to extend my whole acted support for all the resolutions proposed today. And also, I would like to congratulate you all for having won many awards and titles. Thank you for presenting. I support once again.

Thank you, sir. Now I would like to invite our next speaker shareholder Ms. Prakashan Sinor to share her thoughts.

Yes. Thank you, sir. I'm Prakashina Ganisha Shawal Bombay, respected honorable Chairman, Chairperson madam, other dignitaries on the Board and my fellow shareholders, good afternoon to all of you. I received the annual report well in time which is colorful, informatory, transparent and contains all the information patient corporate governance. I thank Mr. Satam, and his team for the same. I should not forget to thank team once again for calling me and reminding me of today's meeting, along with the link. Thank you, Satam and his team. The Chairman has given a beautiful picture regarding the company, it's working in all parameters, thank you, Chairperson Madam. I'm glad that the company is doing extremely well in all parameters, congratulations for the same. I'm thankful to the Board for a commanding dividend for the financial year '22, '23. At the outset, I congratulate one and all for resuming various awards. This shows the hard work of all these stuff. I'm also glad that the company has being outstanding work in the field of CSR activities. So I have a few questions. My first question is with the increased expenditure in our R&D facilities, how many -- how many would be launched in U.S. and other countries. My next question is with the recent acquisition by our company in the domestic and international market, how much it would benefit the company in terms of growth and profitability to the shareholders. My next question is with the increase in the price of raw materials, what impact it would have on our profitability. Last but not the least, Chairperson Madam. My personal request is please continue with [ VC ] meeting so that people all over the world will have an opportunity to express their views. I wish the company good luck for a bright future and pray god that the profit of the company so reach the peak in due course. So I strongly and wholeheartedly support all the resolutions footfalls in today's meeting. Thank you, Madam.

Thank you, ma'am. Now I would like to invite our next speaker shareholder, Mr. Hiranand Kotani sir, to share his thoughts.

It's a great pleasure to join you. Its a great company, certainly, but it's still a long way to go the excellence yet to come. Company has turned over as well, but regard to the investor is not visible. So many people speak that working is good. I hope so. Your global business is doing well. But certainly, the -- what is the dollar term revenue, I want to know. 20th companies are in faring. How much liquid India will receive in remaining in dollar term. And there are the two reported some harassment of women, sexual harassment case, how you're dealing with it? Are you handing over to the court of law or particularly police. Because internally, you can settle what you settle? You arrange them as marriage or other things or just [ rusticate ] them? The other previous geography, these cases are reported, but certainly, some companies are now reporting to balance sheet. Even some very transparent company like Tata, I used to give the exact figure and is particular gain all the details, I ask them a TCS the 26 cases were reported as various geographies. They give all the report. So I want your Chairman and MD regarding the Indian operation, are there increase in the scale and in the near future and some new product your TB, you are a first number in India. For global you're first, I'll ask you regarding that percentage in other countries also as our geographies. For other key diabetes and other things, we are far away how we are going to enhance the growth in various and improve the prosperity is certainly a high time to give the bonus because my 2, 3 questions has already asked Mr. Mahadevan and Anil Parik. I don't want to repeat. Certainly, you had to increase that need and the bonus is very much [indiscernible] has a huge low equity you committed some right issue, then also good because your other equity and borrowing is still there. Yes, Yes, you already heard something. I was saying that I asked so many questions.

No, we heard you. We have taken notes, and we'll answer it all together.

After all, I'm honored to have the opportunity to address you all today. And I would like to express my gratitude to the Board of Directors for arm with this trans once more. First of the Board of Directors for continuing the virtual mode of meeting, [then allowing the] shareholders to express their view. So please continue this positive trend. I am a satisfied shareholder of our company, and I must comment on management for the remarkable efforts in creating wealth for the shareholders. However, I'd like to raise a couple of concerns. My totally concern, particular utilization of saving on account of virtual work mode. I believe it will put it in fab to allocate a portion of this funds to the register of the shareholders. More particularly amongst speaker shareholders who participate in the AGM as speakers considering the valuable contribution of active participation in moment in the meeting. It could be a test of recognition appreciation to disputes among important facet. I highly request you to both customer proposal and act to the prosperities of particular appreciation. By doing so family will it will reinforce the positive effort in the company have stakeholders and contribute to overall well of the company, corporate family. My next question I'd does company manufacture in drug for scale rates or any nary infection or oncology product built if he can many. My next concern is bought our latest development in the company's R&D pipeline. My next question is, how is the company employing the quality and safety of its product. My final concern is that the company has been hesitant in supporting individuals in need, including myself. I have shared back credentials in the past and follow-up of consistency. My requests have not been considered. Should not aiding differently [indiscernible] person. We part of [ CS ] activity. The by company is hesitant in supporting me. Our appeals for our support in certification work including Form 15CB, but there is no more progress after that. So please look at the matter and support internal needs. Your assistance would mean a lot to me. If I can get help from the oil company like open who flat can do I'm reselling my pension of writing hopes in the hopes of tests and provide to contusion or Dan have support. I want to clarify, I'm not sitting on 3 handouts of free money moral sympathy. I value independent and sales lines and more people are listed I expect my desire to maintain independence. Thank you for considering my request. I firmly believe that with your support, I can make significant contribution to our organization and have a positive impact on society. Thank you, thank you so much.

Thank you, sir. Now I would like to invite our next speaker to shareholder, Mr. Ashish Shankar Bansal, sir, to share his thoughts.

We expect that gentleman and [indiscernible] changing the physical copy of the parent sheet. Since I want to know, [indiscernible] .[Foreign Language]

Thank you, sir. Now I would like to invite our next speaker shareholder. Mr. Goutam K. Tiwari, sir, to share his thoughts.

Sir, first of all, I'm very happy. Sir, this is one more delighted year, and it speaks volumes about the company's success year after year. Dear madam, very special good afternoon to our popular Chairperson, Manju Guptaji, Vinitaji, our CFO, Nileshji, Rameshji, all other eminent Board of Directors, Unitaji, and our team Lupin Limited and my fellow shareholders and all others, those who are joining the meeting, very, very special good afternoon to you, I am Goutam Tiwaro and I am participating at this AGM from Mumbai. Dear madam and all my SU airports. I'm the shareholder of this company right from day 1. And I have been seeing the company's progress year after year, and I'm very much grateful, sir, [Foreign Language]. I support all appointments and reappointments of all directors. I voted in favor of all the resolutions, which I support very much. Very few small things which I have got which I got in my mind to appreciate the company's working and improve my understanding, I would like to know, do we -- now we are certainly making generic medicines. Looking Amara percentage of generic medicines [Foreign Language]. Then how many dividend I am very happy the increased capital pay 400% dividend [Foreign Language]. Sir, our attrition rate 25% to 27%. [Foreign Language]. I really congratulate I'm really thankful to each member of the management for selecting such excellent global service providers in all these sections, [Foreign Language] I wish for each and every member of our company, a very happy, safe long prosperous or very longer very good, excellent life with all happiness with all God's blazing choices, placings rather, throughout to and through [Foreign Language]. Thank you very much all the management .

Thank you, sir. Now I would like to invite our next speaker shareholder, Mr. Anil B. Metair, to share his thoughts .

Good afternoon to all. This is Anil Meta, attending this meeting from Mumbai. Sir, first of congratulations to all the level of staff wherever getting the award. Sir, my first question is what are the company's CapEx plans and the present capacity utilization levels? My second question is what is the company doing to improve the shareholders' relations? My third question is that what steps at a board of dates taken to monitor management action and to encourage the shareholders' interests are protected. The last question is that, sir, what are the major opportunities and challenges facing the company and how does the management plan to respond. With this, I'm supporting all the distribution and thanks to the secretary department for their hard work and best of that in the future. Thank you very much, sir.

Thank you, sir. Now I would like to invite our next speaker shareholder, Mr. Yushu Rangwala sir, to share his thoughts. .

[Foreign Language] . I would like to know we are in U.S., 6 Indian pharma company market types. We have 1,000, 5,000 doctors 15,000 and our balance sheet, dividend, [Foreign Language]. I remember our late Chairman, [Foreign Language] he was a very founder of this company, [Foreign Language], they are very hard working. Thank you. Thank you, sir.

Now I would like to invite our next speaker shareholder, Mr. Sunil Modak, sir, to share his thoughts.

Good afternoon, sir. restricted Chairperson, Board of Directors, CEO, MD, Secretary team, employees of Lupin, my fellow shareholders who are joining this meeting, I am Sunil Modak, joining in this meeting from my residence, Calcutta. I consume my thanks to the managerial staff, Board of Directors and the employees of the Lupin the excellent result for the year 2022, '23. The company again on the dividend list and declared a dividend of INR 4 or INR 2 that is 200%. Net profit after tax was 4,300 million against loss of previous year 15 to 18. Pro dividend. Sir, I have some questions. What is the capital expenditure program for 2, 3 years? And acquisition of pharma sector, if any, to equal the pharma sector. And what is the market share of genetic medicine. Sir, I congratulate employees and the managerial stuff for the awards and recognitions our company receipt. I convey my thanks to them. Sir, nicely, we have depicted a financial reports is very useful. Sir, I have already casted by e-voting and supported all the resolutions in favor of management. Sir, I want to know how was sales and on prem dividend were in towers to IPF, this intimate before sending it to IPF, reminder to shareholders. So our team employee centers variable. Is there any specially challenged employee , how many? Sir, make it convenient to make it one of our respective is done. With this, I conclude my speech, be safe and posperous. Thank you very much. Thank you. [Foreign Language].

Thank you, sir. Our next speaker shareholder, Mr. Aspi Bhesania, sir, hasn't joined us. So thank to each and every shareholder for sharing your thoughts. Now I hand over to MD, sir.

Sonic, we can't see you guys, but Vinita will lead the answers to the questions. In the interest of time, we'll keep it .

Well for to be efficient. And anything that we do not -- are not able to respond Investor Relations team will reach out. But we've noted a number of suggestions on conducting a physical meeting. So we will do -- we will definitely consider that as well as factory visit. And in particular, the number of shareholders expressed concern about the transfer of funds both dividend as well as shares. We will take a look at that and get back to you, make sure that nothing is overlooked there. A number of the speakers talked about the fact that our business has improved, but yet we have a long way to go. And specific questions around market share in the U.S. as well as in India. I'm very happy to say that as Chairman -- Chairperson mentioned, we have gotten our India business back to double-digit growth. We are firmly into double-digit growth across all of our major therapy areas and continue to work on plans to expand our field force as well as pipeline to attain leadership across our major therapy areas. In the U.S., we are the third largest company by prescriptions dispensed. So pretty strong position from a prescription market share standpoint. However, our focus has been on profitable share. As most of our shareholders have known the U.S. business, the generic business has been under pressure for the last couple of years. And our focus has been on getting the business to profitable growth going forward. And we've made a lot of progress on that front. You see a number of recent product approvals tiotropium was mentioned by a number of the speakers. We're very pleased to be able to get that approval, and we are actively planning to launch the product in the quarter. Likewise, other products, like Daruna wear, we already launched in June. We were exclusive on 1 strength. It has contributed nicely to our Q1 performance. The other first two market products like Dazapam and Sanakabalamin, we are planning to launch again this quarter. And I'm very happy to say that apart from the launches over the next couple of weeks and months, given our success with the FDA inspections recently, Pithampur site got cleared by the agency. So that will also lead to other product approvals, especially in the ophthalmic segment, where there is a huge drug shortage in the U.S. So as we look at the next couple of quarters as well as the next couple of years, we have a good number of products that will come to the market in the U.S. that will allow us to grow the business on a consistent basis, but importantly, on a profitable basis as well. A number of speakers asked questions around the R&D investment. That R&D investment has gone down year-over-year this past fiscal year. And I'd like to say that was a concerted effort on our part to move our R&D focus from simple generics to complex generics. A big part of R&D investment is for generics. And given the pressures around the simple generic products. Our focus has been around complex generics. So therefore, you saw an optimization of our R&D investment towards complex generics. Likewise, we also optimize our investment in our NCE research. We had investment in developing discovering new drugs versus [ cheap ] programs that were far along in the pipeline. And we decided to focus on the products that were far along to be able to get them to the finish line and hopefully see success in the clinic. So overall, our R&D investments, along with the rest of our efforts on the optimization front, we actually are doing more with less I would say, with the R&D spend that we have as an organization and continue to focus on optimizing R&D spend along with our business focus. Nilesh, I would request you to maybe address a few of the questions around diagnostics as well as India business plans.

Sure, sure. And then we'll hand over to Ramesh to just talk about ESG a little bit. On India business plans, first of all, I think we're very optimistic on India. We've added 1,400 representatives last year, 6 new divisions, 1 more division to follow this year as well. And we're clearly doubling down in India. We have not grown as fast as we would like in the last few years. And now we're getting back to the double-digit growth, growth ahead of the market as well. We had a very positive at big areas are innovation, diabetes and cardiovascular, those will remain our focus areas, but other areas like women's health, gastroenterology are shaping up very nicely. So we are an Indian company. So obviously, there's going to be a lot of focus on India. We're doing a lot in adjacent areas in India as well, coming to diagnostics. That's one of the adjacencies. It's shaping up very nicely. They're performing ahead of the plan. we have about 20 labs -- about 32 labs at this point of time, 20 of our own in that. I'm sure you would have seen labs, especially in places like Bombay and in Kalpetta is strong in West and East India. And lots of good plans coming there, a lot of good synergies that we are seeing as well. So again, very optimistic on our foray in that space. It's very quickly on OTC. I think there were some questions on our outlook on OTC business. It's very positive. We've been doing this for a few years. We've done it as a separate entity within the company. And we're obviously keen to scale that up as well. Ramesh, on ESG, I think there were some questions on rating and maybe some questions on ForEx gains or losses if you guys can address. You guys might be a new revision.

A few unanswered questions. So the one question on CapEx. We spent about INR 500 crores to INR 600 crores on an annual basis. In terms of IT, we spent about INR 52 crores in terms of CapEx and total overall expenditure and IT is about 1.5 percentage of this trade number. An issue -- question on ForEx gains. We gained about INR 775 million in terms of ForEx during the course of the year. Question on ESG. So we subscribe to quite a few frameworks more and more importantly, we have TCFT, we have the human GC, the DGA side that we subscribe to, and of course, the Morgan Stanley framework as well. Our overall score from DTAs and we hope to kind of progress along and get to a higher level in the quarter -- in the years to come. Yes. I think those are unanswered question, so to speak. Yes, most of the subsidies are actually are making good profits. There are some of those which are actually start-ups at this stage, which would be, of course, our diagnostics and digital. In terms of our overseas subsidiaries, Nanomi is, of course, into R&D expenditure. So to the extent it could be a loss-making. The American business was hugely profitable. But the last couple of years, there have been some downturn. But it turns profitable. It did turn profitable last year itself, and it certainly show at a very different level during the course of the year. And likewise, with the Brazil also, it is a loss-making entity until very recently, but it turned on from an EBITDA perspective last year.

There was a question regarding unclaimed shares and unclaimed dividend. Of course, we are not happy in transferring the shares to the IPF as well as the unclaimed dividend. But as for the statute limits, we don't have actions. We keep on sending the reminders to all the employees to claim the dividend amount or to claim the shares. Only if it's a large data regulations, then only be transferred. So far, we have transferred 732,000 shares to the EPS. If anything remains unanswered, would be happy to take after this meeting. Satum, you'd like to continue now?

Yes. Thank you. Now I would like to summarize the resolutions to be passed at the AGM. There are 7 resolutions in. The first one thing for the stand-alone audited financial statement. The second being the consolidated audited financial statements, third is per division dividend. Fourth is for reappointment of Mr. Ramesh Swaminathan as a Director. The 50s for a reappointment of Mr. Managing Director. The sixth is for the continuation of the Executive Director shinier John Billings Independent Director, and the last is to ratify the remuneration to be paid [indiscernible] . So I would request those senators who are present and have not casted their vote on the resolutions through remote e-voting and are eligible to do so, mainly do it in the next 15 minutes before the -- after the reserve with the permission, I announced that the AGM stands concluded and wish to thank the shareholders and the management for the kind support. Thank you.