PAG posted healthy net sales growth of 17.6% YoYto INR6.2b (est. of INR6.15b), with overall volume growth of 11.3% YoY. Men's Innerwear, women???s innerwear and sportswear segments grew by 16%, 13% and 22%, led by volume growth of 12%, 8% and 15%, respectively. Gross margin contracted 410bp YoY to 55.6%due to higher outsourcing relative to the base quarter. This was offset by strong operating leverage, as employee costs fell 190bp YoY and other expenses declined sharply by 410bp YoY, resulting in EBITDA margin expansion of 200bp YoY to 20.8% in 3QFY18. Thus, EBITDA grew by a robust 30% YoY (est. of +19.6%) to INR1.29b. Adj. PAT was up by a healthy 32.6% YoY to INR834m (est. of INR736m).