UBBL's sales increased 17.1% YoY to INR12b (est. of INR11.9b) in 3QFY18.Volumes grew 12% YoY v/s 6% growth for the industry. Growth was achieved despite the lack of supply for a large part of 3QFY18 in the state of Maharashtra due to pricing issue (was resolved subsequently) and the route-to-market change in West Bengal. Gross margin shrunk 140bp YoY to 52.4% ( due to impact of higher commodity costs and GST). Staff costs fell by 30bp YoY and other expenses by 140bp YoY,possibly due to operating leverage led by healthy sales growth. EBITDA was up by a healthy 19.3% YoY to INR1.5b, but missed our estimate of INR1.8b due to lower-than-expected margins growth. Due to a higher-than-expected tax rate,PAT fell 2.3% YoY to INR474m (est. of INR674m), despite healthy EBITDA growth.