4 August 2018 revenue grew 21% YoY to INR10b (our estimate of INR10.5b). The strong YoY growth came partly on the back of last years low base. The business slowdown at Unit-I due to compliance-related activities during the quarter impacted the growth to some extent. Gross margin expanded by ~200bp YoY to 62%, but contracted by ~100bp QoQ due to change in product mix, higher prices of solvents on account of hike in crude oil prices and increase in prices of key starting material procured from China. EBITDA margin improved more sharply than gross margin by 554bp YoY to 35.4% for the quarter, driven largely by a reduction in costs related to remediation measures. Other expenses, as a percentage of sales, declined from 18.2% in 1QFY18 to 14.1% in 1QFY19. EBITDA grew 43.7% YoY to INR3.5b (our estimate of INR3.7b). PAT growth at 39% YoY was higher than EBITDA growth, led by forex gain of INR270m.