1 August 2018 Net sales grew 31.8% YoY (and 12.7% QoQ) to INR27.7b, driven by growth in Automotive, UPS, Inverter, Telecom, Solar and Infrastructure batteries. Our channel check suggests that the company has taken cumulative price increase of 1-1.5% during the quarter, which also aided revenue growth. Average spot lead price for 1QFY19 declined 1.4% QoQ (but increased 15% YoY) to INR160 per kg. In July 2018, lead prices declined 4.5% v/s 1QFY19 average (+4% YoY) YoY (and 120bp QoQ) to 33.6%, led by higher lead prices and likely lag in lead inflation pass-through. The management indicated that lead inflation coupled with adverse currency movement impacted margins in 1QFY19. Higher RM cost was offset by operating leverage benefits, as staff cost declined 100bp YoY (and 50bp QoQ) to 5.8%. Other expense too declined by 120bp YoY and QoQ to 13.