EBITDA declined 17% YoY to INR1,139m, with the margin contracting 270bp YoY to 12.1%. In 2HFY19, we expect revenue growth of 11% YoY, with margin contraction of 100bp. volume growth of 9% YoY in 2QFY19 and 15% YoY in 1HFY19. However, revenue growth and profitability were impacted in 1HFY19 on account of currency volatility (hedged at exchange rate lower than realized translation), product mix changes and raw material (RM) cost pressure. Going forward too, RM cost pressure (cotton prices at INR46k/candy v/s expectation of MSP level prices of 43-44k/candy) and currency volatility are likely to persist. Due to the strong miss on earnings (45%) in 2QFY19 and the likely gross margins pressure in 2HFY19, we cut our revenue/earnings estimates by 3%/24% for FY19 and by 5%/24% for FY20. We also note that strong volumes have not translated into robust revenue growth and operating performance.