Eris Lifesciences Ltd

NSE:ERIS

Earnings Call Transcript 2024-Q4

[Operator]

Ladies and gentlemen, good day, and welcome to the Q4 and FY '24 Earnings Conference Call of Eris Lifesciences Limited. We have with us today on the call Mr. Amit Bakshi, Chairman and Managing Director; and Mr. V. Krishnakumar, Chief Operating Officer and Executive Director. [Operator Instructions]. Please note that this call is being recorded.

I now hand the conference over to Mr. V Krishnakumar, Chief Operating Officer and Executive Director of the company. Thank you, and over to you, sir. Please go ahead.

[Krishnakumar Vaidyanathan, executive]

Good afternoon, and welcome to our quarter 4 and FY '24 business update. So just before we get into the quarter, I think this is a good time to kind of recap the journey that we have been through over the last 24 months or so. It's been nothing short of transformative as far as our business is concerned, as far as our footprint is concerned.

It began with the acquisition of Oaknet in May 22, followed by the acquisition of suite of brands from Glenmark and Dr.Reddy's later on that year. So we put together a dermatology franchise in financial year '23. Then in the financial year that went by, we picked up the Biocon, Nephro and Derma businesses in the month of November, followed by 2 very pivotal and strategic deals in quarter 4, which kind of go hand-in-hand with each other. Firstly, the Swiss Parenterals Limited acquisition and the acquisition of the Biocon injectables business, which was announced in March and completed in April.

So a total investment of more than INR 3,500 crores in the last 24 months, a big part of which has happened in the last few months and a very, very transformative journey. I'll articulate more about this as we go ahead. A quick update for all of you in terms of what we have started doing on the Q4 deals. Obviously, these are still early days. So we will come back to you with a detailed update post the completion of quarter 1. But -- and also, we have acquired Swiss Parenterals, which had an FY '23 revenue of INR 280 crores, 37% EBITDA margin. The Eris equity stake in Swiss has been augmented to 70%. We kickstarted the business integration. So the Eris corporate team now overseas core business activities at Swiss. Also, this is something that we have highlighted and we shared the deal with you that we see a lot of manufacturing synergies between the Biocon portfolio and the Swiss manufacturing capability.

So happy to share with you that we have initiated the manufacture of Biocon injectable products at the Swiss units, and this will ramp up. Swiss has an active R&D pipeline of more than 90 products. We are in the process of strengthening go-to-market activities, including business development and regulatory and the other important initiative where we have already started work is to get the Eris Ahmedabad unit inspected by international regulatory authorities later this year because you might recall that we had spoken about initiating the export of oral solid dose forms as an additional -- as a completely new revenue line for the company, whereby we would leverage the manufacturing footprint at our Ahmedabad and we would leverage the channel relationships of Swiss Parenterals.

So the first step in that direction has been taken where we're preparing the groundwork to get the plant inspected later this year. As far as the Biocon injectable business is concerned, we completed our position in early April. It has brought power brands like Basalog, Insugen, Biomab, Canmab, Ivnex and Biopiper into our portfolio. The revenue run rate at the time of acquisition was to the tune of INR 30 crores per month.

Now this acquisition has resulted in a significant expansion of our covered market. So we see that our covered market has expanded by more than INR 15,000 crores because of this acquisition. We have added 4 divisions Insulin, Critical Care, Oncology and Market Access. So Insulin, Critical Care and Oncology is something that we have spoken to you before. Market access is a very interesting new revenue line that we've added. So Market Access division has basically engaged in supplying the same suite of products to various central and state governed institutes. So this is, again, a new revenue line that has gotten added. We have an active sales and marketing team of, around 630 personnel, which includes 435 reps.

So moving on -- so this is something that we are very excited about, the kind of diversification that we were seeking in our therapeutic mix in the domestic formulations business, which is still the mainstay of the company. So if we look at March '22 versus April '24 on a MAT basis or roughly a 2-year period. Our top 3 therapies, which is oral anti-diabetes, cardio vascular and VMN accounted for 80% of our business back then.

Now the concentration of these 3 therapies has been reduced to 54% after accounting for the fact that these therapies have delivered 11% CAGR over this time period and our emerging therapies, notably derma, insulins, women's health, CNS, oncology, critical care and nephro they now account for 40% of our business. So we kind of are happy with what the way this has come together, and we believe that this sets a very good base for secular organic growth going forward.

This is a quarter 4 picture from AWACS in terms of growth versus peers. So the IPM growth for quarter 4 was 9.5% and Eris growth was for the tune of 14.5%. So happy to share that Eris continues to outperform the IPM and also continue to stack among the top 10 players.

Now moving on to the quarter 4 update in terms of primary numbers. Domestic Branded Formulations, our flagship segment clocked the revenue of INR 480 crores in quarter 4 of this financial year, this accounted for 87% of our consolidated revenue for the quarter. In terms of quarter 4 growth, the overall growth in the Branded Formulations revenue was 23% and the organic growth in quarter 4 was 15%. We expect to see a sustained 12% to 14% organic growth in our Domestic Formulations revenue in FY '25 as well.

For the full financial year, Domestic Branded Formulations clocked a revenue of slightly over INR 1,900 crores. It accounted for 95% of our consolidated revenue and then implies a growth of 18% over last year. Again, we expect to see a 12% to 14% organic growth in this business in the current financial year. And also happy to share that Eris MJ closed the year with INR 46 crores of revenue in its second year of operations and an exit run rate of INR 5 crores per month.

Coming to Domestic Formulations EBITDA. The quarter 4 EBITDA of the segment was INR 130 crores. This represents a 27% margin and a growth of 8% over Q4 of last year. There was a decline of 180 bps in Q4 gross margin due to the evolving product mix, there are new items that have been added to the portfolio, including the Biocon segment that we have picked up in November. This product mix is expected to stable the first half of this year.

For the full year, the EBITDA of the business segment was INR 656 crores, which represents a margin of 34% and an increase of 100 basis points over last year. This increase was driven by a couple of factors. One is as we already recapped to you in previous occasions, successful integration and significant margin improvement in our Derma segment from 27% to 35% and a major reduction in the EBITDA burn from Eris MJ. So it was INR 20 crores burn in FY '23, which is at INR 8 crores burn this financial year, and we were looking to get to breakeven in quarter 4, which we are more or less there. Quarter 4 EBITDA was around minus INR 1 crore.

We like to share some clarifications on the Domestic Branded Formulations EBITDA. So starting with our reported formulations EBITDA of INR 656 crores for the year and INR 130 crores for the quarter. There were a couple of onetime nonrecurring items, which would like to call out. So there is a bucket of INR 21 crores which includes a few items like donations, SAP implementation costs and deal-related expenses. So this aggregated to INR 21 crores in quarter 4, and thanks to the financial year.

And the second factor is something that we would like to call out here, which is what we see as the excess OpEx that we spent on the Ahmedabad plant. So basically, we have spent INR 30.5 crores as operating expenses for this plant, which represents pretty much a fully loaded cost. However, the capacity utilization was less than 20%. So on a pro rata basis, we have overspent here with the tune of INR 70 crores. And this situation will get normalized by quarter 4 of this year. But after adjusting for these 2 anomalies in the numbers, the adjusted domestic formulations EBITDA is INR 695 crores, which represents a margin of 36%.

So I guess if there is 1 message that I would like to leave you with on this slide, it is that the fundamentally characteristic, the fundamental margin profile of our Domestic Formulations segment is intact. It continues to be a 36% margin business. .

Moving to the consolidated picture for the quarter and the year. Consolidated operating revenue for the quarter was INR 551 crores. This represents a growth of 37% and consolidated operating revenue for the year was INR 2,009 crores, which represents a growth of 19%. Post deal closing, Swiss Parenterals clocked a revenue of INR 55 crores, which is part of Q4 consolidated numbers. Q4 EBITDA stood at INR 148 crores with a 27% margin and 25% growth year-on-year. FY '24 EBITDA stood at INR 675 crores with a 34% margin and 26% growth year-on-year. This implies a margin expansion of 174 bps.

Quarter 4 PAT stood at around INR 80 crores, with a 30% growth year-on-year and FY '24 PAT stood at INR 397 crores, which implies a growth of 6%. This includes the impact of all acquisitions and nonrecurring items. Adjusted EBITDA for FY '24 was INR 713 crores on a consolidated basis. This represents a 36% margin and a 33% growth year-on-year. Adjusted profit after tax for the year was INR 432 crores, which represents a 22% margin and a 16% growth year-on-year.

A little bit of clarification on the adjusted profit after tax. So it really flows through some of the adjustments that we spoke about in the EBITDA a couple of slides ago. So there was an adjustment of INR 38.4 crores to the EBITDA because of nonrecurring items. So this flows through to PAT as well and the impact at the PAT level is INR 35.4 crores. So the consolidated PAT is INR 397 crores on a reported basis and the adjusted PAT is INR 432 crores.

Coming to the other important metrics for the year. We report one more year of strong operating cash flow conversion. So our operating cash flow to EBITDA for the year was 72%. Earnings per share reported for the year stood at INR 29, which represents a growth of 6% year-on-year and cash EPS, which excludes the effect of amortization stood at INR 38, which is a growth of 14% for the year. In-house manufacturing, which is basically our Guwahati and Ahmedabad sites accounted for around 60% of Domestic Branded Formulations revenue this year. This is primarily on account of the evolving products or business mix.

Consolidated debt on our balance sheet as of 31st March stood at around INR 2,700 crores. We expect that this will reduce by INR 400 crores in this financial year from internal approvals on the back of our continued healthy operating margin and strong OCF conversion. In terms of return on capital employed, you can see that it was at 34% in FY '22. And then FY '23 and FY '24 the numbers are 20% and 11%, which is clearly driven by acquisitions, where the gross block impact has come into the base instantly. Amortization impact has also come in but the earnings, the margin improvement, all those things, integration, they take time, which is why when you look at FY '24 return on capital employed on an adjusted basis, it's a number of 19%. So this adjusted is based on full year pro forma EBIT of FY '24 acquisitions, and it excludes the impact of M&A-related amortization.

Moving on to the guidance for the current financial year. So as mentioned earlier, we reiterate an organic revenue growth guidance of 12% to 14% on our Domestic Formulations base business of FY '24, and we expect to maintain a Domestic Formulations EBITDA margin of 36%.

On Swiss Parenterals and the most recent Biocon injectables acquisition, we will share the FY '25 revenue and EBITDA guidance post completion of quarter 1. We are in the process of putting things together. We have good visibility of more than 20 first in market launches through our own R&D pipeline. And when we spoke to you last time, we spoke about the benefits that are to be gained by enforcing the manufacturing of some of the Biocon products, whether it is insulins or oncology or hormones. Now in order to achieve the in-sourcing, we are looking to set up these manufacturing blocks at our Ahmedabad facility, and we estimate that we'll have a CapEx of INR 70 crores to INR 80 crores just around the sale.

In terms of key considerations for the financial year, again, we have depreciation to the tune of INR 60 crores, amortization to of the tune of INR 225 crores. Interest expense, we estimate at around INR 240 crores. As articulated on numerous occasions, we continue paying cash tax at the MAT rate of 17%. We have an accumulated MAT credit of around INR 460 crores as of 31st March. So we will progressively leverage the accumulated MAT credit over the next few years because of which operating cash flow is expected to be maintained at 70% to 75% of EBITDA.

Debt reduction continues to be a very important strategic priority for us. So the pro forma EBITDA of FY '24 of all the acquired businesses is more than INR 850 crores. So on this basis and looking at an outstanding debt of around INR 3,000 crores, we are at a debt-to-EBITDA ratio of 3.5x now. And our priority is to reduce this to less than 2x in the next 18 months. So towards this, we expect INR 400 crores of repayment through internal approvals this year and INR 600 crores of repayment through internal approvals in the next financial year. So by the end of next financial year, we will be at a ratio of around 1.5x, which is something that we believe is a comfortable place to be in.

So this concludes the presentation for this quarter. Now we move on to Q&A.

[Operator]

[Operator Instructions] The first question is from the line of Gagan Thareja from ASK Investment Managers.

[Gagan Thareja, analyst]

So I think you put out a filing on the stock exchange, indicating that you intend to do a fundraise, can you give us some idea of the magnitude of the fund raise and in what form do you intend to do this? And by what time?

[Kruti Raval, executive]

Yes. Apologies. It's unmet now. Sachin, please go ahead.

[Sachin Shah, executive]

So we intend to raise NCDs and of around INR 1,250 crores and repay the CPs, which are due first week of June, second week of June.

[Gagan Thareja, analyst]

Okay. Okay. And is it also possible for you to apprise us of how the acquired brands from Reddy's and Glenmark have done for you this year? And how do you -- I mean, what are your sort of strategies or thought processes to scale these businesses. And likewise, for the other acquired entities also, if you could apprise us from what are your aspirations perhaps, if not on a short 1 year frame but perhaps on a 3-year frame and also give us your thoughts on the profitability metrics of these businesses going ahead.

[Amit Bakshi, executive]

Gagan, Amit here. So Gagan look dermatology is clearly emerging as our fourth largest therapy now. So typically, there were strong in diabetes cardiovascular and VMN these were 3 categories which we used to see very dominant. Now we are looking at dermatology. It's now become our fourth largest therapy and if I'm not wrong, we are already featuring the top 10 in dermatology. There is some moment -- noise in the data of the AWACS data, which happens when you kind of buy brands from outside.

Now I am having a very good traction between dermatology and cosmetology, we are still doing better in dermatology. So Glenmark brand burn largely on dermatology volumes. And that is 1 area where we have seen high teen growth. The cosmetology piece hasn't done as well as Derma piece but I think we are learning the ropes there. Dermatology is a very large business between dermatology, cosmetology, the clinical dermatology. So that is panning out good for us, we aspire to be one of the top 5 in dermatology. So it's a big us, not very much, it's a decent us, but we think we have been there way we never achieved that. Because inside, if you look at the major brands, our major brands are showing much bigger growth than the overall growth of the business. So that gives me a lot of confidence. So I can tell you for sure that dermatology will be another large player.

[Gagan Thareja, analyst]

Is it possible to give us the numbers for Oaknet, Glenmark acquired and Reddy's acquired brands for FY '24. What's topline and margins perspective?

[Amit Bakshi, executive]

Look margins, Oaknet margins are almost at the company level margins. So I can safely tell you the margins that are at around 35%. Now if you look at the AWACS data it is all over the place. So that has reporting a triple digit kind of, am I right, in most of the brands. So it went down and then it came up. But what I can tell you is, we see a healthy teen, higher teen growth in the next 2 years when it comes to our large brands.

[Gagan Thareja, analyst]

So the primary sales -- I mean, secondary sales, right, as you say, we are all over the place, but for the primary sales that you would report in your own income statement.

[Kruti Raval, executive]

Gagan, Kruti here. So all these pieces are now part of the DBF business and disclosing each brand or each therapy separately is not a part of our guidance. So you'll have to go by the secondary numbers as far as each brand or each therapy is concerned.

[Gagan Thareja, analyst]

All right. And for the MJ biopharma piece. How is that working out in terms of monthly sales numbers? And are you at a breakeven on that business now? Or what are the margins looking like there?

[Amit Bakshi, executive]

Yes, Gagan, we told you in the presentation at quarter 4, we are almost breakeven. The loss was limited to INR 1 crores for a quarter. So we are quite -- we are up there and the run rate -- we are run rating at INR 60 crores, but you'll have to wait for this business because we are having 2 businesses in insulin now. So there is 1 large piece, which has come from Biocon and then there is an MJ piece.

So I will tell you after the first quarter, how do we manage both these brands. Right now we are managing both the brands within the company. But you need to give me 1 quarter to make it more clear. Largely the large portion of the growth will be driven in the MJ brands -- sorry, the Biocon brands because there are very large size brands. Basalog being INR 100 crores and Insugen being INR 100 crores, large availability across the country. So most brands have a lot of juice in them.

[Gagan Thareja, analyst]

Also perhaps clarify, I think Mankind also has an in-licensing arrangement with Biocon for Glargine, if I understand it correctly. And obviously, you will be up against their fairly comprehensive distribution. In addition to that, my understanding is that the deal closing and lifting all now becoming generic price points are lower and penetration is much higher volume-wise and they tend to sort of delay the onset of insulin usage. So between these 2 -- do you see these 2 in some way sort of the challenges that you might have to face in growing your own insulins business.

[Amit Bakshi, executive]

So Gagan, look there is no science it says that this brands will replace insulin at any given point of time. Secondly, insulin initiations in India has been very, very poor when compared to any of the rest. The adoption has been very, very poor. So even when we talk about develop countries like U.S. where the products have been available for a long time. We really don't see a challenge in insulin. So insulin market in India is still very, very under-penetrated. And when you look at the science it actually doesn't at any point of time, say that these will chase to substitute for insulin. So we don't find the ins market going down at any point of time.

[Gagan Thareja, analyst]

Yes. And on the -- from a competitive standpoint, how do you see the market with Mankind also entering this business.

[Krishnakumar Vaidyanathan, executive]

No. Gagan, we want to believe we are good at diabetes and we are good at insulin, insulin is a little bit more concentrated form in diabetes. So we believe we are good. And up till this point of time, our 2 years of journey has actually been quite -- pervasively very good. So let's see from where it goes from here.

[Operator]

[Operator Instructions] The next question is from the line of Neelam Punjabi from Perpetuity.

[Neelam Punjabi, analyst]

My first question is on the Swiss Parenterals portfolio. So have we launched anything from that portfolio in our Domestic Formulations segment?

[Amit Bakshi, executive]

Yes, we have already. So the idea was that we want the critical care piece from Biocon, we wanted that to be shifted first to Swiss and then launch new products. So I think the cycle has started. And we believe by the end of this quarter, a large percentage, almost 60 percentage of that portfolio should be manufactured with Swiss and there should be 4 to 5 new brands which should be launched manufactured by Swiss. So that plan is on track.

[Neelam Punjabi, analyst]

Got it. And secondly, my question was on the net debt figure. So INR 2,700 crores by 31st March 2024 that you all mentioned, that includes the potential payout for the Biocon acquisition, right?

[Krishnakumar Vaidyanathan, executive]

Yes. Yes. So just to clarify, the Biocon acquisition of payout is completely backward into that. And the INR 2,700 crores was as of 31st March. But for all practical purposes, we paid the debt figure at INR 3,000 crores because the Swiss Parenterals augmentation of Eris stake from 51% to 70%. That resulted in the debt figure going up to INR 3,000 crores but that happened in the month of April. So while 31st March is INR 2,700 crores. Our starting point for the debt is INR 3,000 crores and this includes everything, nothing has been left.

[Operator]

[Operator Instructions] The next question is from the line of Harith Ahamed from Avendus Spark.

[Harith Mohammed, analyst]

In all of these slides, you had called out a INR 21 crores nonrecurring items in 4Q. So I missed the details around that, can you clarify that?

[Krishnakumar Vaidyanathan, executive]

Harith, is your question about the INR 21 crores non-recurring items.

[Harith Mohammed, analyst]

Yes. Yes.

[Krishnakumar Vaidyanathan, executive]

As articulated earlier this was a combination of factors including SAP implementation cost, which is a onetime expense. The deal-related expense for the deals that we consummated in quarter 4 and some donation, which is again of 1 time.

[Harith Mohammed, analyst]

Okay. Understood. And you mentioned that the organic growth for the Brand Formulations business for the quarter is around 15%. So the adjustments that we've done to arrive at this would be the sales from Swiss Parenterals and the Derma, Nephro business from Biocon. Is that the correct understanding.

[Amit Bakshi, executive]

Yes. Yes. This is on a like-to-like basis. So whatever was part of the business in quarter 4 of last year that becomes the base. So clearly there's no Swiss Parenterals, there's no Biocon because these businesses are not part of this. In fact even the Dr. Reddy's is not part of this. This only includes what was there with us in Q4 of last year.

[Harith Mohammed, analyst]

Okay. So if I adjust for the one-off there's been a nonrecurring item that we called out of INR 21 crores. There's been a decline sequentially in our margins for 4Q versus the first 3 quarters in FY '24. So how should we think about this decline sequentially.

[Amit Bakshi, executive]

So I think if you look at the quarter-on-quarter growth, and I think quarter 4 of last year versus quarter 4 of this year the EBITDA margin growth is significant thing, right. The growth is momentum we set. So if you look at the legacy pattern of the data of the last 2 years as you have seen in quarter 4 is a bit of a smallest quarter for the Domestic Formulations business. Quarter 2 and quarter 3 are peak growth. So most of the year is actually made in these quarters. So rather than looking at the Q4 margin on a sequential quarter basis, I would ask you to look at it on a year-on-year basis, which is more represented.

[Operator]

[Operator Instructions] The next question is from the line of Rahul Jeewani from IIFL Securities.

[Rahul Jeewani, analyst]

So I'll start on this organic growth of 15%, which we called out for quarter 4. Can you similarly call out the organic growth for the full fiscal year '24?

[Amit Bakshi, executive]

I think it would be to the tune of 9% to 10% somewhere in that range.

[Rahul Jeewani, analyst]

Okay. Sure. So -- and in the -- we have started seeing some sort of a pickup happening in the chronic segment recently with growth pickup in both cardiac and diabetes, which is where we seem to have benefited as far as our organic growth during the quarter is concerned. So do you think that this momentum would sustain going into FY '25 as well, and that gives you confidence to deliver this 12% to 14% organic growth going forward?

[Amit Bakshi, executive]

So Rahul, I mean, what you are saying is right, but also remember what happens when bigger brands sit on the portfolio. So you don't actually integrate the bigger brands. There is some loss which happens when you don't get people. Then there's some loss which happens at the smaller brand level also. So in case for dermatology if the same division has got a large INR 30 crores, INR 40 crores brand, then what has this INR 3 crores, INR 5 crores, INR 6 crores brand starts getting, there's a little pressure on promotion there. From P1, P2 they get shifted to P4, P5. So while what you are seeing at a larger level is right, but what is playing out is the time which has the time which we have spent and the promotion grid which gets changed and then gets stabilized. So 2 factors together. I will give the second factor a little more weighted, but this is how it plays off. And that is why you're seeing the volume growth coming back.

[Rahul Jeewani, analyst]

Sure, sir. And on this debt reduction target of INR 400 crores and INR 600 crores for the next 2 years what would be the key variables to track for the debt reduction, which you are planning?

[Amit Bakshi, executive]

Rahul, I think it's starting with EBITDA, operating cash conversion, which we are reasonably confident we'll be in the 70% to 75% range. So then after that, we have called out the CapEx of INR 70 crores to INR 80 crores per annum and we have said this year INR 240 crores interest charges. So whatever is left after that goes towards debt repayment. So these are the key variables. So nothing really to...

[Rahul Jeewani, analyst]

Sure. And this INR 70 crores, INR 80 crores CapEx which we are targeting for FY '25, then I believe this number should come down next year, given that most of our capacity expansion plans would largely be over.

[Amit Bakshi, executive]

So it all depends on how the next 3 units span out because we told you that, we want to take the Biocon injectables portfolio in house, which has multiple components. One component is general injectables, which is already gone in distress. Then you have insulins, which is a specialized piece, you have oncology, then we have some hormones. So in order to bring these amounts, we have to create capacity in Ahmedabad. So these are all humans which require containment and they are kind of different. So that is why we called out CapEx in '25 and '26. So that is all that is there on the horizon for now.

[Krishnakumar Vaidyanathan, executive]

Rahul, if you look at the wheel now, the therapy mix, while the newer therapy looks a little small at this point of time, but if you look at the order of the portfolio, it is actually -- it's a lot of evolution happening there. So insulins, nephrology, cancer, these are 3 larger markets and these 3 are the highest growing markets. Not insulin, say cancer, oncology is growing by 17%, 18% and nephrology has also been growing at that level.

So if you look at the whole wheel and you look at the newer addition. The newer addition also the immunologic piece, which we put in dermatology, but that is where the lifts are kind of taking up, and we are seeing almost 100% growth in that category. So it makes a lot of sense for us to kind of use these things together because the delta which you achieve by getting say glimepiride + metformin from a third-party in house is very small when compared to these products. So we would like to believe that these are therapies, which will become bigger, which will always have some amount of -- not everybody will be able to enter, some barrier, entry barrier. And these are the therapies which will become very large. So our manufacturing plan, as I told you in the last -- past years also, that we are now becoming a little more product company. So you will see the investment in the production keep on coming here and there.

[Rahul Jeewani, analyst]

Sure, sir. And sir, last question from my end before I join back the queue. Can you talk about your debt expansion plans as far as the organic business is concerned? And what is our current productivity on the organic business?

[Krishnakumar Vaidyanathan, executive]

The productivity at this point of time on is 5.2, 5.3, when we integrate everything, it will move closer to 6 because a lot have been larger these oncology, these portfolio generally have a very high productivity. We have no plan in organic addition at this point of time because almost 600 people have come in the last year. So we must be integrated them and get some productivity up. So I don't see any expansion -- significant expansion even in the organic piece.

[Operator]

[Operator Instructions] The next question is from the line of Prashant Nair from AMBIT Capital.

[Prashant Nair, analyst]

So 2 questions. Firstly, a couple of quarters back, you had outlined a few products that we are working on internally as part of our R&D program. So can you provide an update on how many of those you have launched in this fiscal and what is the pipeline for the next year?

[Amit Bakshi, executive]

Yes. So we -- this fiscal, we've launched 2 products, we launched them in February, I think, Feb, March. One of them is the combination of gliclazide with sitagliptin. We are waiting for the third triple drug approval, which basically we need to do 1 more deal for that. So that is the process. We have got another marketing authorization for the product, which is dapagliflozin in metoprolol. We have seen this is a very good drug for post-MI and for patient -- diabetic patient with CKD. So that is 1 thing which the MA has already come. We are waiting for the final licences. And the next product, which is in line is dapagliflozin with bisoprolol that goes more into the heart failure. So these 3 are something which we think we should be able to launch in Q1. And then the Q2 is little silent, Q3 will then pick up very well.

[Prashant Nair, analyst]

Okay. And the second question is -- so now you've had some time in the market with the diabetes products that have gone off patent so vilda, dapa, sitagliptin, linagliptin also sacubitril-valsartan. So could you provide a sense of where you are in these products currently in terms of ranking.

So after this period of time in the market.

[Amit Bakshi, executive]

I won't remember all of them. So we will have to come back to you, but the largest market has become triple digit market, sitagliptin. So dapa with sita that has become the largest market. And there, I think that we ranked #3 and #4, respectively, for double drug and single drug. Sacubitril-valsartan, I'm not happy with the way we have performed. We are kind of ramping it up. That's something where we have an long-term value. But diabetes continue to do well. What we have done, not acceptable, but quite well is on the linagliptin part. I think linagliptin after innovators, we are right up there.

So linagliptin has worked very well. Dapa combination have worked very well for us. Sita, we didn't have a great start, but it picked up in between, I think we are now #3 or #4. And vilda, we continue to be #1 in the generic space. So that's how it's kind of stacked up, but we'll be happy to provide you the latest numbers. And right now we have not presented that data but we ranked #3 overall value of new product launch. In April data, we will launch, we were ranked #2 in overall new products launched.

[Operator]

[Operator Instructions].

[Kruti Raval, executive]

If there are no more questions. Can we close now.

[Operator]

Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to Mr. V. Krishnakumar for closing comments. Over to you, sir.

[Krishnakumar Vaidyanathan, executive]

In closing, we recorded a consolidated operating revenue of INR 2,009 crores in the financial year '24. Our consolidated EBITDA and PAT for the year were in line after adjusting for one-off on exceptional items. They clocked for 15% organic growth in our Domestic Branded Formulations business in quarter 4. It is significantly diversified therapy mix. We are well positioned to deliver a domestic formulations organic growth compared to 3% in FY '25 as well. Deleveraging our balance sheet continues to be a priority and we expect to get to a debt-to-EBITDA ratio of less than 2x by the end of September '25, starting with a repayment of INR 400 crores from inter approvals this financial year. Thank you all, and have good evening.

[Operator]

Thank you very much, sir. Thank you, members of the management. Ladies and gentlemen, on behalf of Eris Lifesciences Limited, that concludes this conference. Thank you for joining us, and you may now exit the meeting.