Maintain SELL with a TP of Rs 2,220 (16x Sep19E). Dr. Reddys Labs (DRRD) delivered a mixed top-line performance in 2QFY18. Overall revenue declined 1% YoY, but witnessed growth of ~7% QoQ. Pressure in the US business continued with a 11% decline YoY. There was some relief from the performance in Europe (+34% YoY) and emerging markets (+14% YoY). The EBITDA margin came in at 18.7%, up ~200 bps YoY and ~120bps ahead of estimates.