5 November 2018 Net sales grew by 15.3% YoY (-1.9% QoQ) at INR27.2b driven by growth in automotive, inverter and industrial batteries. Further cumulative price increase of ~3-3.5% in the automotive segment has also aided revenues. Average spot lead price for 2QFY19 declined 8% QoQ (-2% YoY) to INR147 per kg. In Oct18, lead prices declined further by 0.5% (v/s 2QFY19). shrunk 50bp QoQ (+50bp YoY) to 33.1% led by adverse currency depreciation impact on imported lead and likely lag in lead inflation pass through. Management indicated higher fuel costs coupled with adverse currency movement impacted margins in 2QFY19. On a YoY basis, the benefit of lower RM (-50bp YoY) and staff cost (-20bp) was offset by higher other expense (+100bp YoY/ +120bp QoQ) to 14.8%. Consequently EBITDA margins came below estimate at 12.