8 August 2018 STRs revenue was stable YoY at INR6.6b (our estimate of INR6.3b). Growth was led by Australia (+18% YoY to INR2.3b) and the US (+13% YoY to INR1.7b) businesses, offset by de-growth in Institutional (-29% YoY) and Africa (-35% YoY) businesses. Gross margin expanded 200bp YoY to 48.7% on account of a better product mix and a favorable currency impact. Other operating expense rose 60bp YoY, restricting EBITDA margin expansion to 140bp YoY (to 12.2%). Though EBITDA was up 13% YoY, STR reported a loss of INR43m (our estimate of a profit of INR157m), largely due to lower other income, higher depreciation and a loss in JV/associates. STR on track to bring 50% of the partnered business in the US to own front-end by FY19. Due diligence in progress for the merger of Arrow and Australia business of Apotex. The transaction is under review by Australia Competition and Consumer Commission (ACCC).