Srikalahasthi Pipes Ltd (SPL) registered strong revenue growth of 28.6% YoY in Q2FY19, largely driven by volumes. However, EBITDA and PAT declined by 15% & 10.5% respectively, which was disappointing and significantly below our estimates. Impacted by muted realizations, input cost inflation and rupee depreciation, EBITDA margins contracted sharply by 657bps YoY to 12.8%.