Alembic Pharmas (ALPM) top line grew ~18% YoY in 4QFY17, albeit on a low base. The EBITDA margin at 18.2% was down 450bps YoY (75bps miss). PAT stood at Rs 930mn, up ~2.2%YoY. In our view, 4QFY17 was a weak quarter for ALPM. Profitability reduced largely on account of higher R&D spend, US front end costs and staffing for the new facilities.