Revenue in-line; Valuation Continues to Remain Pricey Cipla's revenue rose by 8.8% YoY to Rs40.8bn in 2QFY18, in-line with our estimates. Surpassing our estimates by 2.2% and 3.6%, its EBITDA and PAT surged by 18.2% YoY and 17.7% YoY to Rs8.0bn and Rs4.3bn, respectively. Adjusted for GST, its domestic business grew by 19% YoY on the back of inventory re-stocking post GST-led disruptions. While the US business declined by 6.9% YoY to US$95mn, South African business grew by 4.9% YoY. Gross margins declined by 258bps YoY to 62% due to higher R&D; spend, upward contribution from ARV-API sales and pricing pressure in the US. Adjusted EBITDA margin expanded by ~100bps YoY to 19.2% (in-line...