Cipla disappointed in 4QFY18, in-line with previous years' trend, with Revenues/EBITDA/PAT being 6%/28%/50% below our estimates, mainly due to negative operating leverage on account of lower sales as well as one-time costs related to sales and distribution (INR 450500mn), employee recruitment, disposal of Yemen subsidiary (FX loss of INR 512mn) and provisions (INR 775mn) towards ongoing DPCO overcharging litigation. Net sales remained flat YoY to INR 36,980mn as strong growth in domestic formulations sales (+21% YoY; adj. for GST) and South Africa (+18% in USD terms) was offset by the sharp decline in Global Access markets and Europe. While gross margin was broadly in-line with est. at 64%...