Mankind Pharma Limited (NSE: MANKIND) Q3 2025 Earnings Call dated Jan. 24, 2025
Corporate Participants:
Abhishek Agarwal — Head, Investor Relations
Rajeev Juneja — Vice Chairman & Managing Director
Sheetal Arora — Chief Executive Officer & Whole Time Director
Ashutosh Dhawan — Chief Financial Officer
Prakash Agarwal — President, Strategy
Analysts:
Tushar Manudhane — Analyst
Kunal Dhamesha — Analyst
Neha Manpuria — Analyst
Rashmi Shetty — Analyst
Chintan Sheth — Analyst
Amlan Das — Analyst
Kunal Randeria — Analyst
Dheeresh Pathak — Analyst
Abhinav Ganeshan — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Mankind Pharma Q3 and Nine Months FY ’25 Results Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on a touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Abhishek Agarwal from Mankind Pharma Limited. Thank you, and over to you, sir.
Abhishek Agarwal — Head, Investor Relations
Thank you. Thank you. Good afternoon, everyone. Thank you for joining us today for our Q3 and nine months FY ’25 earnings conference call. On-call today, we have Mr. Rajeev Juneja, our Vice-Chairman and Managing Director; Mr. Sheetal Arora, Chief Executive Officer and Whole-Time Director; Dr. Sanjay Koul, Chief Marketing Officer; Mr. Ashutosh Dhawan, Chief Financial Officer; and Mr. Prakash Agarwal, President and Strategy. We will start with Mr. Rajeev Juneja providing an overview of Q3 FY ’25, followed by Mr. Sheetal Arora providing detailed insight into our business performance. Mr. Ashutosh Dhawan will then take about our financial performance and thereafter, we’ll open the floor for any questions. I would like to emphasize that this was the first-quarter with BSV included in our performance with 69 days of BSE effective from 23rd October 2024. Further, please note that some statements made today may be forward-looking and for a complete disclaimer, please refer to the investor presentation and press release available on our website. Now, I’ll hand it over to Rajiv, sir for his comments.
Rajeev Juneja — Vice Chairman & Managing Director
Thank you, Abhishek, and good afternoon, everyone. Wish you a very Happy New Year. A very warm welcome to our Q3 and nine months ’25 25,000. 2024 has been a transformative year for. We begin by accessing our various M&A opportunities, culminating in the acquisition of PS3, which perfectly complements our strategy of expanding into high-entry barrier portfolios and having specialty R&D pack platforms. Our market-share in IPM in value term increased by-40 bps to 4.8% December ’24 versus 4.4% in March ’22,
Abhishek Agarwal — Head, Investor Relations
Please stay connected. We will reconnect the management. Thank you ladies and gentlemen, we have the management line reconnected. You can go-ahead, sir.
Rajeev Juneja — Vice Chairman & Managing Director
Thank you, Abhishek, and good afternoon, everyone. Wish you a very Happy New Year, a very warm welcome to our quarter three and nine months earning call. So ’24 has been — 2024 has been a transformative year for MannKind. We began by assessing various M&A opportunities culminating in the acquisition of BSV, which perfectly complements our strategy of expanding into high-entry barrier portfolios and having specialty R&D tax platform. Our market-share in IPM in value terms increased by-40 bps to 4.8% in December ’24 versus 4.4% in March ’24, primarily driven by acquisition of BSV. And therefore, we raised funds of INR10,000 crore through NCDs and CPs for the acquisition. Additionally, we raised INR3,000 crores in equity, which has been utilized to repay a portion of CPs as of January 16, ’25. This shows our commitment towards maintaining a healthy financial position in the company. In-line with the corrective actions taken in OTC division last year. We have undertaken certain corrective measures in our daily pharma divisions, pharma divisions to enhance field force productivity and bring more efficiency in the system. We’ve always focused on building a solid foundation on which this initiative nearing completion, we are confident it will further support in delivering sustainable long-term growth. Moving ahead with our quarterly performance. In-quarter three ’25, our revenue increased by 24% year-on-year to INR3,030 crore and a healthy EBITDA margin of 27.7%. Our organic growth for the quarter was 11.2% year-on-year with a domestic growth of 8.4% year-on-year and export growth of 43% year-on-year. For nine months ’25, our revenue increased by 17% year-on-year with adjusted EBITDA margin of 26.8%. Our organic growth for nine months ’25 was 12.3% year-on-year with a domestic growth of 9.3% year-on-year and export growth of 53% year-on-year. For Mankind, excluding BSV, chronic share has further increased by 200 bps year-on-year to 37.6% in-quarter three ’25 as compared to 35.6% in-quarter three ’24, driven by continued outperformance in pre-chronic therapies. Our commitment to make quality healthcare accessible to all has led us to expand our DMF grade products offering to over 215 versus 150, 215 versus 150 in financial year ’24 with more than 90% of them in chronic segment and thereby ensuring that our customers on pro longed medication receive products that adhere to international grade quality standards. Our corrective measures undertaken in OTC business is now completed and we witnessed a robust revenue growth of 30% year-on-year during the quarter and 15% year-on-year in nine months ’25. On the R&D front, we continue to prioritize product innovation and building strategic partnership with innovators to strengthen our product portfolios. In this regard, we have recently partnered with Biologics for the in-license of and advanced PD-1 immunotherapy designed to adhere — adhere to address the critical challenges of cancer treatment and improve access to innovative therapies in India. Overall, this year has been a transformative year for mankind with four engine of growth number-one, steady base business; number two, fast-growing specialty chronic segment; and number three, high-potential OTC business; and four, high entry barrier super specialty portfolio of BSV. All four business verticals are placed well to drive long-term sustainable growth. And now I invite Sheetal to provide more details on our business performance.
Sheetal Arora — Chief Executive Officer & Whole Time Director
A very good afternoon to all thanks for joining us today for our quarter three and Nine-Month financial year ’25 earnings call. In the last quarter, we completed the acquisition of BSP, strengthening our high-entry barrier portfolio and adding incremental capabilities to our existing R&D tech platform. During the quarter, work on BSP integration in mankind is on-track. Looking ahead, our priority is the successful integration of BSE to ensure long-term sustainable growth. Before moving ahead to the quarterly update, I would like to express gratitude for the overwhelming response we received during the fundraising and I would also like to extend my heartfelt gratitude to all stakeholders for their continued trust and belief in our region. Talking about domestic business, in the 3rd-quarter of the financial year 2025, our domestic business revenue increased 16% year-on-year, majorly driven by continued outperformance in chronic segment and consolidation with BSV business from, 23, 2024 onwards. Our organic domestic growth for quarter three financial year ’25 was 8.4% year-on-year. For Nine-Month financial year ’25, the revenue increased to INR8,203 crores, registering a growth of 12% year-on-year. Our organic domestic growth for nine months financial year ’25 was 9.3% year-on-year. In-quarter three financial year ’25, Mankind, excluding BSV, chronic share increased by 200 basis-points year-over-year to 37.6%, primarily driven by 1.3 times outperformance in cardiq and 1.1 times in anti-diabetes. Now our CVM cardio rank has improved from fourth to third in IPM. As we know, cancer cases continue to rise in India. With its burden projected to reach 29.8 million disability adjusted life year-by 2025. We have recently partnered with Innovant Biologicals through an exclusive in-license agreement, injection. This strategy collaboration aims to address the critical challenges in cancer treatment. Talking about OTC, this has been the first-quarter of the OTC business post carving out the same into wholly-owned subsidiary of Mankind to maximize its true potential. In-quarter three financial year ’25, revenue increased by 30% to INR193 crores. The revenue for Nine-Month financial year 2025 increased by 15% to INR631 crores. The growth is largely attributed to healthy performance across key brands. Talking about international business, in-quarter three financial year ’25, revenue increased by 121% year-on-year to INR457 crores. In-quarter three financial year ’25, led by increase in our base business, further supported by BSV International portfolio. Our organic export growth for quarterly financial ’25 was 43% year-on-year. Together with BSV, we aspire to be one of the most admired company in the country, offering complex and specialty products accessible to all. Now I invite Ashutosh ji to provide a detailed insight into the financial performance. Thank you so much.
Ashutosh Dhawan — Chief Financial Officer
Sure. Thank you,. Good afternoon, everyone. I’m delighted to have you all on our Q3 nine months FY ’25 earnings call with us. This marks the first-quarter in which we have started consolidation of financials effective 23rd October ’24 onwards, along with OTC business, which has been carved-out of Mankind into a wholly-owned subsidiary from this quarter. Let me briefly summarize the financial highlights of our quarterly performance for Q3 FY ’25. During the quarter, our revenue from operations has increased by 23.9% year-on-year basis to INR3,230 crores as compared to INR2,607 crores in Q3 FY ’24. This quarter’s revenue is combination of mankind’s revenue for the full-quarter and BSV’s revenue for part of the quarter. During this quarter, our EBITDA has increased by 36.4% year-on-year basis to INR833 crores with margins of 25.8% as compared to INR611 crores with margin of 23.4% in Q3 FY ’24. The EBITDA margin for nine months FY ’25 were at 25.8%. However, if we adjust the EBITDA with non-recurring expenses, especially related to the transaction, our adjusted EBITDA margins for the quarter were at 27.7%. The increase in adjusted EBITDA margin of 430 basis-points year-on-year was largely due to improvement in the gross margin of 270 basis-points and the balance is on account of operating leverage due to higher-growth. In nine months FY ’25, adjusted EBITDA margins were at 26.9%. For this quarter, our gross margins have increased to 71% year-on-year basis from 68.3% in-quarter three FY ’24. This increase is combination of sale price increase effect, favorable sales mix and input cost. The R&D expenses for the quarter are INR71 crores, which remains at 2.2% of the sales, which is within the stated guidance of 2% to 2.5%. Depreciation and amortization expenses increased to INR192 crores as compared to INR110 crores in Q3 FY ’24. This includes amortization impact of INR84 crores pursuant to provisional purchase price analysis related to BSV assets. The consolidated effective tax-rate for nine months FY ’25 was at 21.2%, which is higher than 19.8% effective tax-rate in nine months FY ’24, which is in-line with our guidance of 21% to 22%. The PAT has decreased by 16.4% to INR385 crores during the quarter in-spite of increase in the reported margins of 240 basis-point. This is primarily due to higher finance cost and amortization costs related to acquisitions. Our diluted EPS is INR9.4 per share of INR1 paid-for the quarter. The cash EPS, which is EPS adjusted for non-cash items like depreciation and amortization was at INR14.2 the net operating working capital days for the quarter has increased to 52 days as compared to 45 days in the preceding quarter. Further, in nine months FY ’25, our cash-flow generated from operations was at INR1,599 crores, which is on an year-on-year basis, a decrease of 2.3% from nine months FY ’24. This decrease is on account of higher working capital days and certain one-off expenses. As a result of higher working capital and one-off expenses, our cash-flow to EBITDA ratio for nine months FY ’25 is at 67.4%. Our capex spend for nine months FY ’25 was INR344 crores, which is 3.7% of total revenue for nine months FY ’25 and the same is in-line with our guidance of 4% to 5% of the revenue. In order to maintain financial discipline and healthy leverage ratio, we have repaid INR3,000 crore of CP last week from the proceeds received from QIP. Our net-debt to adjusted EBITDA is 2.2 times as on quarter-end, and our endeavor is to achieve net-debt to adjusted EBITDA of 2x by end of this year. This concludes our opening remarks. And now we are happy to take any questions which you might have. Thank you. Over to you, Abhishek.
Abhishek Agarwal — Head, Investor Relations
Thank you. We can start the Q&A session.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press R&2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles
Rajeev Juneja
Can we begin please?
Operator
The first question comes from the line of Tushar Manudhane from Motilal Oswal Financial Services. Please go-ahead.
Sheetal Arora
Yeah, thanks for the opportunity. Sir, with respect to the prescription business, we have commented that there has been corrective measures as far as MR efficiency is concerned. If you could elaborate what was the or the loopholes, which we have tried to address and subsequently improve the MR efficiency? That’s my first question.
Rajeev Juneja
See, I mean if just look at our commentary time and again, we have said that we want to attain a leadership position. And when you think of these things, you basically work on certain areas of your weakness, whether it is marketing side, variety side or finance side, every place. So let me talk about the marketing side. There were certain inefficiencies in terms of EBIT primary sales or discounted sale, the category of doctors coverage or the strategy of entering in top doctors chamber, top hospitals. And once you start working on these things, which we started working last year. To bring these changes in 15,000 people, you need to take certain bold steps and we have always been very, very forthright and frank in explaining that for the strong foundations, we’ll always go for any kind of changes which are basically right for the future sustainable growth of mankind. And we have taken that. A lot of changes have been brought in leadership side as well. I mean, lot of new leaders have come from outside, those who can really bring these changes, that is what has been done. When you do these things, this kind of a — I mean bumps can really come. But let me tell you one thing that we are very confident that going-forward, things will be even better, what was there in the past, 80%, 90% changes are complete maybe next 1/4, this quarter, I’ll say. In mankind side, pharma, Delhi site, this will be complete. Let me further explain you. What basically — it will be an example of OTC business. We took the same kind of steps last year in OTC side where we have just accepted that these are certain practices which needs to be corrected, whether it was number of distributors, whether hiving off, bringing different talent or making sure that it’s not a mixed kind of a culture where one guy, one leader is taking care of OTC and pharma both. And once we took that, look at the growth and what gives us more happiness is then we are solid from inside. And I can tell you with fullest confidence, the mankind will always operate on these lines. I’m sure, I answered you.
Tushar Manudhane
No, no, that’s quite comforting, sir. So secondly on while you have highlighted on the organic revenue growth, would it be possible to share organic EBITDA growth as well for the quarter?
Ashutosh Dhawan
So it will — since this is the first year and the numbers are strictly not comparable because BSV has been consolidated for the first time. And moreover, there has been one-off expenses also, which has impacted the overall EBITDA margin. So going-forward, we shall be in a better position to give a better color around this.
Rajeev Juneja
But let me add one thing. I mean once you take corrective actions, so our margins always improve. So that I can tell you. The margin will always improve. On one-side, you will see that there is a less of growth. You can ask these questions. We know this. But once you take these corrective actions on a field force of 15,000, you bring lot of new replacement or you challenge them, you push-back, you do everything possible, right? And we have done it. And it’s been long process. I mean, even in mankind, one year it has taken, where we take — I mean everything very, very fast. For any other company, it is kind of, I mean, huge task for any company just to maintain everything having a balanced approach. I mean these actions can be taken in tapered manner, but we believe that once we identify something, we work on that. So growth may be a bit affected, but naturally, the impact on margin increase is always there. So it has been… In fact, it’s 27%.
Tushar Manudhane
No, in fact, it seems that if I adjust the one-time expense with respect to the acquisition at 27.7% margin. Just trying to understand out of this, if I on a like-to-like comparison, if I have to do for the base business, what is the EBITDA growth? So basically excluding BSV as well as excluding the one-time expense associated with M&A.
Ashutosh Dhawan
So Tushar, so BSV margins are in-line with company average margins. So the growth — the core growth in the EBITDA you see is as per what you see, because even if you strip that, you will get the same number.
Tushar Manudhane
Understood. That’s it. That’s it from my side. Thank you.
Operator
Thank you. The next question is from the line of Kunal Dhamesha with Macquarie. Please go-ahead. Kunal, your line has been unmuted. May I request you to go-ahead with your question, please.
Kunal Dhamesha
Can you hear me?
Abhishek Agarwal
We can hear you. It’s a bit louder.
Kunal Dhamesha
Yeah. Yeah, sure. Thank you for the opportunity. So first one, more clarity on the organic growth. What been seeing is quarter three organic growth for our domestic business is around 11.2%, right? Is that correct in the same?
Sheetal Arora
So let us repeat that. So our overall growth organic is 11.2%, domestic is 8.4% and international export is 43%. These are the organic numbers.
Kunal Dhamesha
Okay. Okay. So in that case, our formidation business would have grown at what’s around 7%, 6%, 7%?
Sheetal Arora
You mean the domestic X? Ex OTC.
Kunal Dhamesha
Yeah, yeah. Yeah,
Sheetal Arora
That’s around 7%, that’s right.
Kunal Dhamesha
Okay. So what this is obviously been a meaningful slowdown from what we have been seeing. While our chronic has improved, our acute seems to be bleeding in my view. So what are the steps that we have taken and what is the outlook on the acute therapy since it’s still while we are growing our chronic, acute is still the bigger part of the chunk, right? So how should we think about the organic domestic formulation business going-forward?
Sheetal Arora
I know as Rajeev ji highlighted, there is significant corrective action taken in the Delhi division, which is largely the mass-market division where acute sits. So there significant corrective action in terms of field force optimization, productivity improvement, efficiency improvement is taking place. So that’s why you see acute being sharper drop across acute therapies, not only one. So that is the main reason. And while you see that there is some impact on chronic, I would also say that we usually grow 1.3x, this time it’s been 1.1x. But that journey continues because of the higher focus and your observation is totally right that acute is softer because of these corrective measures, which already highlighted just before.
Rajeev Juneja
And let me elaborate a bit further, I mean, Kunal, to your query. So whenever you take corrective actions, right, corrective actions in terms of everything. And once we identify in mankind especially that these are certain things to be cleaned up, corrected, then we move very fast, irrespective of anything because our concern is always the foundation, the strength, the substance of mankind because that drives the organization. So we worked on that and lot of changes we brought in our leadership as well, whether in the field, whether it’s head office, in marketing, every place. And once you do all these things in a field force of, again, I repeat, 15,000 plus people, it takes time. We started this process last year, I’ll say March, Feb, March. So 80%, 90% is done. You take-up every division, every zone, every area, scrutinize that, check it, which ZM, which RM, which sales manager, which marketing manager, which person, which BU head and then we take action. And we have taken that. The kind of actions we have taken, I can tell you you’ll find real company taking these things because there is always some kind of a burden on those people of showing off a performance, which is actually not their insight. In our case because we are promoter. So we can say, no, I mean, our foundations are more important than us, but than anything else. So we have taken this.
Sheetal Arora
Thank you. So there is one more fact that we had to take into consideration. There have been regulatory tailwinds regarding emergency contraceptic pills and anti-infective combination that is an FDC and codeine preparation that also has impacted the growth in Q3 of acute segment. So can we quantify that impact of these three put together about 0.5%.
Kunal Dhamesha
Okay, 5%. Okay. And one question on the BSV. So if I look at the BSV revenue, probably it’s around INR330 crore, including stick and export. And if I add it to the first-half of four months, we would be close to around INR1,170 crores, which is roughly, let’s say, 68% of the last full-year revenue. So is there any seasonality that is playing out and quarter-four could be very strong that could add one-third more revenue or is there a slowdown on VSV aspect as well?
Rajeev Juneja
So Kunal, this is for 69 days. So first point is you have to quarterize it, take it for 90 days, 91 days. That’s the first point. Second, there is a significant restructuring going-in the Rx business that it is a TTK business of the BSV because we understand Rx business better. So that is getting shifted to mankind. So there is a lot of field force optimization that is happening there. As we also said, there were 600 people in a very small division. So we are looking at optimization, we are looking at product portfolio rationalization and optimization there also. So various initiatives are going. We want to improve the hygiene of the business. So Rx business has been soft. Other than that, I think the other businesses are growing very well. Okay. So these are the two key reasons?
Kunal Dhamesha
And then how should we think, let’s say, two years out when the internal expectation for the BSV business growth, specifically for domestic as well as export?
Rajeev Juneja
So overall, we continue to maintain that this is a high-entry barrier portfolio and growing 15% plus should be possible with export being higher. And on the margin side, we continue to maintain that this is given its high entry barrier portfolio. Margins to start with the region of the company average 26% to 28%. And thereon taking initiatives, R&D initiatives, productivity initiatives, we look-forward that in two years’ time we should every year add-on a little bit on the margin side as well.
Kunal Dhamesha
Sure, sir. Thank you and I’ll join back the queue.
Operator
Thank you. The next question is from the line of Neha Manpuria with Bank of America. Please go-ahead.
Neha Manpuria
Yeah, thanks for taking my question. Just continuing on the corrective actions that we have taken. Has these corrective actions led to a reduction in the field force that Mankind had? Just trying to understand what essentially and has this led to lower spending in the quarter? If you could give us a little more color on what essentially is there? I understand the opening remarks that you made, but just trying to quantify this.
Rajeev Juneja
I mean, let me tell you, I mean see is known for its reach. We’ll always maintain that. So what happens, there are certain customers which are very, very relevant. They were relevant 10 years back, but maybe today they are not relevant. The practices changes acute to chronic, some people age, right? So you need to change list of your customers as well, right? And that when you do that, I mean, you want to penetrate in the hospitals and clinics of those doctors, those who are bit high-end. Keeping that in mind, these corrective actions have been taken, whether it’s a talent, training, primary sales, discounted sales, coverage of doctors, everything right, not to not — we have a cut-down number of people. We have replaced people. I mean we — I mean especially leadership side, I’ll say, because once you replace leadership, some people also leave with those people. I mean, actually, I mean when you — when you say this is a new mankind, this mankind wants to become number-one company in the future. When you say, when you announce these things, it’s not for the sake of announcement only. It’s really to really walk the talk. So you take these hard actions, we have taken that. So it’s not — we have not cut-down number of people. And whatever, I mean less number people will be visible, they would be visible and they will be filled. We are in lookout. We are — you keep seeing vacancies, we keep filling it, it’s not like that. The strength of mankind would remain intact, reaching just to give you an example of that. Every year, how many thousands of doctors come out of medical colleges. So that coverage has to be there, right? How many doctors customers become, I mean, lose practice, you check the lays, you find lot of lacunas. Once you go deeper down once in a while and we went last year and when we basically started seeing the taste of chronic sales benefits. Once we launched our — this specialty divisions in Mumbai side, we saw that what can really happen. So naturally, our inclination went towards that side. And once you go for that, you say, I mean, further deep down why our existing divisions were not covering these doctors. Let’s check it out. And once you go for a deep checking, you realize these are certain and you work on those. And same — I again want to reiterate that. We started this journey last year, Feb, March. This is almost one year. And this quarter, I can tell you till now, 80%, 90% job has been done and dusted.
Neha Manpuria
Understood. Understood, sir., sir, is it fair to assume that the organic SG&A cost would have declined materially quarter-on-quarter because of these corrective actions?
Ashutosh Dhawan
Yeah, there has been some — if you see on a consolidated basis, so there is a delta of INR50 crore. And if you see the one-off expenses, that’s around INR63 crores. So it is fairly flat, slight decline in the SG&A cost on a quarter-on-quarter basis. So I want to add one point,
Sheetal Arora
So I want to add one point, Ashtor Ji. In, 31 March 2024, we had a field strength of 16,043. In December 31, 2024, we have a field strength of 16,570. We have rather added more people.
Neha Manpuria
Understood. Understood. Sure my expenses have been rationalized on a quarter basis. On excluding BSV, that is.
Sheetal Arora
This is excluding BSV. Okay, understood. And my last question, when I think about the synergies that we can get from the BSV integration, you know what I think Prakash mentioned, what are the milestones that we need to watch? I mean, would it be procurement first portfolio optimization probably takes time, field force optimization. So what are the milestones that we need to watch for to understand the synergies that you could get? And if you could quantify a synergy, let’s say, over the next two years or three years that you’re targeting?
Prakash Agarwal
So thanks, Neya, for your question. So we continue to maintain that about INR50 crores to INR100 crores synergy benefits will be there over the next 12 to 24 months, primarily led by three, four things. So one is MR productivity, both Rx and non-Rx. So there’s a lot of room. As we said, fertility is still 18 lakhs. We see peers around 30 lakhs. So that is one clear area. Then we are looking at, you know, a shifting of outsourcing of Rx portfolio to itself because we have large facilities and tablets and capsules we understand better in terms of manufacturing. So the Rx business, if it shifts, we see cost-savings there as well. Plus, we see a lot of — we have ourselves a large division. So access — we get access to those fertility clinics because fertility clinics are growing very well. So there’s a lot of cross-selling opportunity that we see. But there is a host of extensive geographical doctor coverage that both the companies can gain from each other, leveraging the extensive coverage. And lastly, there are some of the savings that can come from leveraging resources because there might be some optimization that can be played out in future.
Neha Manpuria
That’s helpful.
Prakash Agarwal
These are the four, five points, yeah. Thanks.
Operator
Thank you. The next question is from the line of Rashmi Shetty with Dolat Capital. Please go-ahead.
Rashmi Shetty
Yeah. Thanks for the opportunity. In the anti-infective segment, in the presentation also we have mentioned that we have underperformed the market and you already mentioned that certain corrective actions had been taken. But in that related to the product, you mentioned that the codeine-based job, we have also lost sales in the codeine-based product. But what I understand that the start has already started picking-up very well and it is already getting around 80% to 90% of the codine-based sales. So to what is exactly leading to say that this product-related issue is still there.
Rajeev Juneja
So thank you so much for your query Rashmi. There has been one-product which has faced the regulatory issue. It is a FDC, which it got impacted in Q3. So that is why it has also impact — it has impacted the overall growth of NT factors. This is one. Second, when you make overall corrections in-field force over a period of nine months, so we are talking about good number of field force and there are replaced — we have replaced the field force, but many colleagues in-field are three months old, one month-old, four month-old, six months old. They will take some time to basically develop a relationship and with the customers and things will improve in coming quarters and months.
Rashmi Shetty
So for this full-year, taking into account that anti-infective will be slowing down, do you think that we would be just showing organic, I mean, only mankind’s domestic formulation growth will be high-single-digit sort of.
Rajeev Juneja
So Rashmi, this is Q3 only where we have shown a less than optimum performance of factory. But if you look at the YTD, then we are almost equal to IPM growth, 5% versus 6%. So it’s not way behind the IPM growth. And this is this will also be corrected in case I take into consideration the FDC, which we had to withdraw because of regulatory issues.
Rashmi Shetty
Understood. And how is your portfolio performing?
Rajeev Juneja
So very good, very good.
Rashmi Shetty
It is still showing at around 20% sort of growth.
Rajeev Juneja
Correct. Correct. Our transplant business is showing 20% growth and the other products which we promote in other digits are growing by more than 25%. One is Sitcom and second is pilout.
Rashmi Shetty
Second one is,
Rajeev Juneja
Pilout, we like glide.. It, sorry, realize it.
Rashmi Shetty
Okay. And out of your total purchase consideration, what is the split between intangibles and goodwill? Is it 70-30 only what you earlier mentioned and how many years amortization you know you have taken in?
Ashutosh Dhawan
So if you look at the plain split, so that is two-third is towards the intangible and balance is towards the goodwill broadly speaking. Okay. So if you look at the depreciable intangible assets, so that is around INR9,000 crore out-of-the total consideration approximately. However, if you adjust it for taxes, it becomes INR7,200 crores and the balance gets allocated towards the goodwill. So that’s how the broad part is. And if you look at the overall life of the useful life of these assets, so that ranges from Five-Year to 30 year. But on an average — weighted-average basis, it’s around 21 to 22 years.
Rashmi Shetty
Thank you, sir. Okay. And one final question. What is the cost of debt for the — for the for the portion which is still there sitting in the balance sheet after INR3,000 crore repayment. The average cost of debt
Sheetal Arora
We have so — okay. So Rashmi, it’s up 8%. And if you see the INR3,000 crores which we have repaid was close to 7.5%, but all the debt, which is INR3,000 crore INR1,000 crore of CP and INR5,000 crore of NCD, it’s in the range of 7.9% to 8%. It’s there in the public domain along with interest rates.
Rashmi Shetty
Okay.
Ashutosh Dhawan
So having said that, just to clarify, Rashmi, further where the — there is a bulge in the interest expenses in this quarter and this is towards expenses of some of the debt arrangement fee and other-related expenses.
Rashmi Shetty
Yeah, that’s the reason I asked because I just felt that the interest cost during the quarter was extremely high because when you adjust 7.9% to 8%, the interest cost should have been lower, but fine, I just got the clarification. Thank you. That’s it from my side.
Operator
Thank you. The next question is from the line of Chintan Sheth with Girik Capital. Please go-ahead.
Chintan Sheth
Thank you. Thank you team for the opportunity. The question I had was on the interest cost only. So you clarified that there were certain cost-related to debt raise was also sitting in the interest cost. And if you can quantify the same would be great. Because that will be non-recurring, right?
Ashutosh Dhawan
No, that is not because CP is getting retired and all those. So if you see the total expenses around 220 cr. And historically, if you see on a quarterly basis, INR10 crore to INR12 crore is always the interest expense which is coming because there are certain loans in the subsidiary. And so — and we can give you color and for the next quarter, the interest cost would be in the range of INR180 odd CR or so.
Chintan Sheth
Okay. Next quarter, it’s still on a 6th on a INR7,000 crore of debt on a 7%.
Ashutosh Dhawan
Yeah we have retired on 16 of Jan, so there will be a spillover effect also
Chintan Sheth
For 15 days. Okay. Right, right. Okay. And on the corrective measures which you have taken for last year-one year-on the prescription side, do you feel the hit which we have seen this quarter where the growth has you know compromised for 4Q, there will be some — more spillovers likely to happen and then next year onwards, we’ll have a fresh growth slate to grow from there on?
Prakash Agarwal
Yes. I mean see whatever actions we have taken, we have taken to ensure that in future, we are much better, stronger, right, and actually right. So and I again reiterate, 80%, 80%, 90% things have been done, whatever is left, 10%, 15% would be done now. Every — it is in motion in-process is on. So 80%, 90% we say it has been done, completed.
Chintan Sheth
Okay. And just regulatory restrictions, the product which we — which led to acute getting impacted, the neck getting impacted, one or two products which you mentioned. Are we — are we trying to recoup or we try to change the prescription so that we can reintroduce a product in the market to get the sales recovering back?
Prakash Agarwal
And also in gynecology, there was DPCO matter, so that we can only increase the volume growth, but it will still take quite some time to reach to the same number because there has been steep decline in the value price growth because of the PCO. Second product is an anti-infective FDC and we have already — we are maybe in a month’s time, we will be introducing a replacement kind of replacement of that if we see a single molecule so that we can mitigate the losses because of the that we get-in anti-infective because of that happens.
Rajeev Juneja
Let me elaborate on that. I mean, certain things keep happening. I mean, certain kind of headwinds are always there. If you’re solid inside and you basically keep launching new products, ensuring that your INR50 crore brand becomes 100, you have certain strategies, right strategies and you are entering and meeting right kind of customers. These things get mitigated automatically. They are not — I mean giving so much of focus. It happened, happened. I mean now I mean look-forward and change the picture. We take your question.
Chintan Sheth
And lastly, lastly on the BSV margins, you mentioned that it is closer to the average adjusted EBITDA margin, which we have kind of. Going-forward, we also mentioned that BHV has the potential to improve margins to about 30% level, given the product being a high entry barrier and specialty in nature. We can scale that business faster with our reach and drive the margins upward of 30%. That is that is our goal. The synergy you mentioned around INR50 crore to INR100 crores. Is part of it or that is that is separate BSV targeting targeted margins to improve from — from here on.
Rajeev Juneja
Yeah. So over two to three years, we expect that there should be improvement in the margins by 100 bps every year, while it will require some R&D investments also because we enter into some of these semi-regulated markets, regulated markets will require investments, but we remain on-track that in next two to three years, we would be close to 30% margins. And for sure in the next five years. Correct. Yeah, synergies are a big thing, yes.
Chintan Sheth
Synergies are over and about it, right? Yes. Okay. Got it. Thank you. Part of this. Okay, okay. Thank you. Thank you. And I’ll jump back-in.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to one or two per participant. Should you have a follow-up question, we would request you to rejoin the queue. The next question is from the line of Amlan Das from Nomura. Please go-ahead..
Amlan Das
Hi, sir. Most of my questions have been answered. I just wanted to ask one question. In the organic growth organic domestic formulation growth, what has been the contribution of the volume price and new products?
Rajeev Juneja
Yeah. So if you look at the quarter, there has been a slight decline in the volume because of those corrective actions. So it’s about minus 1% and price growth is about 3% and NIU introduction is about 3%. So this is as per secondary data, 5% growth is what we have got from.
Sheetal Arora
But if you look at YTD, then volume growth is around 1%, 4.4% is price growth and 2.6 is new attraction growth okay.
Amlan Das
Okay, sir. And just wanted one clarification. I think I missed a part. So these corrective measures, if they should be continuing in the next quarter this quarter measures.
Rajeev Juneja
This quarter, I mean, see, I mean again 80%, 90% job has been done, but 10%, 15%, I mean it’s always in work-in progress will be completed within this quarter only.
Amlan Das
But is it possible to quantify the impact on the measures on the growth what is in the intent.
Rajeev Juneja
So quantification is not possible, but you can see, I mean if when you take these actions, so your growth is not great, we are not happy with the growth, number-one. Number second, when you — but the best part basically is what EBITDA margins are increased. The happiness is what that you have — you see the company in the right direction. Our new leadership is — new young leadership enthusiasm has been infused. So every company once in a while needs some kind of and changes at which we have brought.
Sheetal Arora
And sir, one more quantification. Hello, regarding the quantification, if you can see that the history of mankind, we have always grown 1.1 to 1.2 times better than the IPM. So this time our growth is subdued. That’s way.
Amlan Das
What I wanted to understand is that the negative volume growth that you have seen in this quarter? Is it majorly because of the corrective actions or is it also responsible market?
Operator
So of course, can I request you to use your handset, please, sir, your audio is breaking, sir.
Amlan Das
Yeah, can you hear me now, sorry?
Operator
Yes, sir. Please go-ahead.
Amlan Das
Yeah. I just wanted to clarify that the volume growth — negative volume growth that you have seen in this quarter, is it majorly because of the corrective measures or there is also a market phenomena here that actually the volumes have been decreasing of the products?
Rajeev Juneja
Mainly because of correcting action.
Amlan Das
Okay, sir. Thank you. That answers my questions.
Operator
Thank you. The next question is from the line of Kunal Randeria with Axis Capital. Please go-ahead.
Kunal Randeria
Yeah, good afternoon, sir. Sir, just to clarify on the BSC business, from what I understand, this year the BSC business revenue should be flat. Would that be correct? That’s largely too because of some changes in the employee structure that you’re doing there.
Rajeev Juneja
If we exclude the Rx business, the business has grown double-digit and Rx business is one more quarter. There is a restructuring going on, the business is getting shifted to mankind. So going-forward, I think fiscal ’26, when you see, you’ll probably see all the businesses ex of Rx and the specialty business, which is women’s specialty as well as the international specialty, both are growing double-digits. So it’s the Rx business and there’s a small element on the API side that barring that business is in good shape.
Kunal Randeria
Fair enough. But at consol DSV level, it would be flat this year, right?
Rajeev Juneja
So consol level, yes, one can say so, and this is strategic to improve the hygiene and the quality and productivity.
Kunal Randeria
Got it. That’s very clear. Secondly on the export front, you’ve had a great last few quarters. Last year, you used to call-out that it was driven by some of these one-time opportunities, but there has been quite healthy growth even from those levels. So can you just give us some color on how much of this export portfolio you still classify as limited competition?
Rajeev Juneja
And the last part was not clear, sorry.
Kunal Randeria
So I was asking that no, you have still grown from last year’s level when a lot of the business last year was driven by one-off opportunities as you yourself called out. So in today’s revenue generation, how much of the portfolio would you classify as limited competition?
Rajeev Juneja
No, no. So if you see, we have given some data on the new launches as well as approvals. So now the base business is growing pretty well, both in the US and ROW. Excluding that one-off also, the business is growing and the share of that one-off has come down substantially. Despite that, there is a decent growth happening.
Kunal Randeria
Right. And the new launches or the base business that you speak of, the margins would be very near the company average?
Rajeev Juneja
So that would depend. It’s very difficult to quantify margins for the regulated markets that is product-specific.
Kunal Randeria
Okay, sure. Thanks.
Operator
Thank you. The next question is from the line of Dheeresh Pathak with WhiteOak. Please go-ahead.
Dheeresh Pathak
Yeah. Thank you. I hope I’m audible. This — in the BFC 17 INR23 crores revenue of FY ’24, how much was the Rx business in that?
Sheetal Arora
For the quarter and for the year, I mean, when we said when we were acquiring, we had said it’s about 11% 12% of for the quarters, we are not quantifying, but since the growth has come down, you can imagine the ratio would have come down substantially.
Dheeresh Pathak
Okay. And this 17% 24% to the earlier question,, you said this will be flat in FY ’25 the total sales.
Sheetal Arora
So that means marginal growth. I mean it would be single-digit growth, but yeah, I mean, because of these corrective actions, we think that making solid foundation is more important, improving hygiene is more important. We are also taking some steps to align BSV to mankind policy. So this is I think. So Q4 onwards, I think you will see a the base will be starting to grow.
Dheeresh Pathak
Understood. And on the restructuring, so you mentioned senior leadership changes and MR restructuring. Apart from that, what else has you changed, sir?
Rajeev Juneja
See, I mean, once you bring up a different kind of leadership, different kind of policies in the sense that approach to-market, see how to approach a chronic product, how to bring new products, how to make sure that your acute business is doing good. Plus, I mean, other changes are basically bringing some kind of optimization, using more of IT site or using more of digital site, all sort of things because ultimately, I mean if you bring a modern leader, he brings modern things and things are changing. Okay. And making sure that hygiene is always there. Right hygiene is most important for us.
Dheeresh Pathak
So I’m just trying to understand that like in consumer business, there was a channel change. So there was a difference in the primary and the secondary sales. So in the prescription business, have you done apart from the MR restructuring and similar leadership changes? Have you done any channel policy changes? So there is a difference between primary and secondary sales in primary side, in discount side, in-hospital extra discount side, in customers’ list side, going to those areas and those hospitals which was out of coverage, all sort of things. So — but the final secondary sales at the customer end, do you have a measure of how much that would have grown? Because if you’re showing primary at 7%, then how much is the channel impact? Is there an estimate of that in your mind?
Rajeev Juneja
I always believe that once you bring these kind of changes, sales and you maintain and make sure that hygiene is there, secondary is no less. Primarily secondary should be equal. I mean, how is it possible that it’s prescription versus primary sales. Prescription is secondary and primary you feel. I mean if you basically believe that you are in a solid ground, you always make sure that your secondary is more secondary prescription is very, very good. And based on that, you fill the inventory.
Dheeresh Pathak
Sir, maybe if you can be one of the examples of the senior leadership changes so that we get some qualitative color of what exactly we changed in the senior leadership.
Sheetal Arora
So I can add. So we have lot of divisions. So if you see, we have more than 15 divisions. And in the large divisions where there was some rigor required, we have added some leadership change. That’s one big change that has happened. So when these large divisions start growing double-digit, you will probably see a good change next year.
Dheeresh Pathak
Okay. All right, sir. All the best. Thank you for taking my questions. Thank you.
Rajeev Juneja
We’ll take the last question, please.
Operator
Yes, sir. The last question comes from the line of Abhinav Ganeshan with SBI Pension Funds. Please go-ahead.
Abhinav Ganeshan
Thanks for taking my question. I just wanted to understand your — if you can give
Operator
That you use your handset, sir, you’re not audible.
Abhinav Ganeshan
Yeah. Is it better now?
Operator
Yes.
Abhinav Ganeshan
Hello. Yeah. So just one — if you can — just one clarification I wanted on some qualitative color. So just wanted to understand on company-wide PCPM basis and for your whole business and for the chronic segment, is the — is the chronic PCPM starting — starting to grow faster than overall PCPM? How do we look at that?
Rajeev Juneja
It’s always like that. I mean, chronic was always growing faster. It was always like that. I mean we just mentioned that now it has reached to in our total sales, which is 200 bps more than last year. So our focus — once we understood that chronic is way forward and for chronic, you’re supposed to approach those specialized doctors. So naturally, I mean, it’s not approach, it’s total change, total ecosystem has to change in the sense who is going, what is supposed to talk, whatever training should take place, everything. So just to clarify, the growth is faster than chronic, but as an average, PCPM in acute will be higher because of the aging is much higher.
Abhinav Ganeshan
Yeah, I appreciate that color. So is it a safe assumption to make that in the next five to six years, you know, as this chronic business also ages, we come towards the company average?
Rajeev Juneja
100%.
Abhinav Ganeshan
Yeah. Thank you so much and all the best. Got it. Got it. Appreciate the color. Thank you so much. Thank you. That was the last question for today. I now hand the conference over to the management for closing comments.
Abhishek Agarwal
Thank you. And please feel right to us in case you have any further clarification. Thank you. Have a nice day.
Operator
Thank you. On behalf of Mankind Pharma Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.