12 August 2018 IPCAs revenue grew ~20% YoY to INR8.5b (our 48% of sales) and API (up 27% YoY to INR2.2b, 26% of sales) segments. However, overall revenue growth was dragged by Generic (down 15% YoY to INR1b, 12% of sales) and Branded (up by a moderate 6% YoY to INR785m, 9% of sales) segments. Gross margin expanded 500bp YoY to 67.5%, led by the increased share of the relatively better-margin DF business. Revenue growth, coupled with better operating margins, led to adj. Reported PAT was lower at INR655m due to a forex loss of INR230m. (1) IPCA is confident of maintaining gross margins at 1QFY19 level; however, inconsistency in the availability of key materials from China may lead to disruption in production. (2) Though unbranded generics sales came in at INR1b in 1QFY19, IPCA has maintained its guidance of INR5.4b for FY19. (3) Remediation cost for 1QFY19 was INR60m.