4 November 2018 CDHs revenue declined ~8% YoY to INR29.6b (our (-20% YoY) and flat growth in domestic formulation (DF) business. Gross margin expanded by ~50bp YoY/QoQ to 66.5%. EBITDA margin contracted by ~320bp (+100bp QoQ) to 23.2% due to higher employee expense (+340bp as % of sales) and other expenditure (+260bp). PAT declined ~17% YoY to INR4.2b (in-line). For 1HFY19, sales stood at INR56.1b (+6% YoY), EBITDA at INR13.3b (+17% YoY) and PAT at INR8.8b (+37% YoY). (1) CDH launched g-Asacol HD from its in-house manufacturing facility, which drove some improvement in margin. (2) CDH launched authorized generic version (AG) of g-Androgel in October 2018. (3) CDH has been able to maintain g-Lialda sales as competitor was not able to gain market share.