4 November 2018 2QFY19 Result Update TRPs revenue increased 33% YoY to INR18.9b (our formulation (DF)/US market, better traction in existing products in the US, and a low base for the LATAM business. Gross margin improved marginally by ~30bp YoY (+90bp QoQ) to 70.5%. EBITDA margin expanded by ~200bp YoY to improving MR productivity related to the Unichem portfolio. However, PAT declined ~12% YoY to INR1.8b (in-line), primarily due to increased depreciation/ interest cost, partly offset by a low tax rate of 12.7% (v/s 25% in 2QFY18). For 1HFY19, sales stood at INR37.7b (+34% YoY), EBITDA at INR9.5b (+52% YoY) and PAT at INR3.4b (-13% YoY). DF business (44% of sales) grew 34% YoY in the quarter. Ex-Unichem and adjusting for GST, YoY growth was 21% in DF.