Highlights of the call:

The Sales from the Domestic business grew by 23% YoY to Rs 120.31 crore for the quarter ended December 2013. The growth was on the back of robust 22% growth in domestic formulations to Rs 114.92 crore and sharp 40% growth in API's to Rs 5.39 crore during the quarter.

The Sales from the Export business grew by 31% YoY to Rs 67.74 crore for the quarter ended December 2013. The growth in Sales was on the back of strong 33% growth in formulation exports (Emerging market grew by 116% and Regulated markets grew by 24%) to Rs 61.96 crore and 12% growth in API exports to Rs 5.78 crore for the same period.

During the third quarter, the Indian Pharmaceutical Market (IPM) grew by 4.9 % over the same quarter last year. During the quarter, acute segment grew by 2.9% and chronic segment grew by 10%. After two consecutive declines seen in Sept-2013 (-1.2%) and Oct-2013 (-0.7%), IPM witnessed positive growth in Nov-13 (7.9 %) and Dec-13 (8.2 %). Among the key therapies, Respiratory (9.0 %), Anti-diabetics (14.7 %), Derma (13.1 %), Opthal/Otological (10.2 %) and Stomatologicals (10.2 %) reported good growth in this quarter by the Industry.

In the Emerging markets, the growth regions are Kenya and Tanzania during the quarter. Re-launch of Dental products with attractive packaging in Sri Lanka and appointment of task force in Kenya for active promotion of dental products will help in leveraging Company's strength in this segment.

The Company has already commercialized first anti-diabetic product, approved under its own ANDA through a US partner.

It has filed 15 products through Watson and 4 products through Inodoco with US FDA as on 31^st December 2013. It has filed 5 products with the Watson during the quarter. It has got approval for one product and launched the same during the quarter. Out of the total filed products 16 are the ophthalmic products.

It will soon commence the launch of ophthalmic products in the US market through ACTAVIS (Watson). This development is expected to take the Company in high growth trajectory.

The filings in European markets have also begun in line with its strategy to steadily augment contract manufacturing business with manufacturing against its own Marketing Authorizations (MAs) for generic companies. To further leverage its strength in sterile ophthalmic formulations, the Company has through a major European partner filed a Dossier in European Union.

The Company's Drug Master File (DMFs) for Rasagaline filed during the quarter taking the tally of DMFs filed to ten.

With the settlement of issues faced by the Industry subsequent to announcement of the new pricing policy, its domestic formulation business has picked up and is all set to further improve its performance in the coming quarters. Focus on chronic segment, better market penetration especially in North and East region and promotion of legacy brands along with new product launches will help in improvement in domestic sales and margins.

The Q3 performance in the domestic formulation indicated derisking its position as chronic segment yielding results. Also, the acute product portfolio is also done well during the quarter. The growth in domestic market expected to continue going forward.

In the European markets, the contract manufacturing business will be slowly augmented with supplies/sales against own Dossiers/Marketing Authorizations (MAs) to bring sustainability and to improve the margins.

The API business is growing as planned and is generating revenues through sales in domestic as well as international markets and at the same time contributing to formulation business through backward integration.

With strong infrastructure built over a period of time, skilled manpower and strategic alliances, the Company is poised for a higher growth, improved margins and sustainable business.

The forex loss is Rs 2.7 crore during the quarter.

The MR strength is 2300 as on 31^st December 2013.

It increased the trade margins to retailers last quarter.

It continued to improve its gross margins past two quarters on the back of better product mix in domestic market and business mix. It is indicated that it will be sustainable going forward.

The Febrix plus and Cyclofam are the 50+ crore brand products. The Febrix plus has potential to become 100+ crore brand.

On Aspin Deal, It expects revenues of Rs 20 crore in FY'14 and Rs 30-35 crore by the FY'15.

The R&D spend is expected to be 2-3% of Sales.

The FY'15 tax rate expected to similar FY'14.

The maintenance Capex is Rs 25-30 crore per annum

It is hopeful that approval will come soon from USFDA (despite some delay in approvals of Watson products from US FDA) and still confident of achieving Sales of Rs 1000 crore by FY'15.