4 February 2019 robust growth in milk products (+18.9% YoY). EBITDA rose 5.7% YoY to driven by an improved product mix, favorable commodity prices and export benefits. However, higher other expenses (+210bp YoY to 18% due to investments in distribution expansion and ad spends) and employee costs (+70bp YoY to 4.2%) led to a 100bp YoY contraction in the EBITDA margin to 10.3%. PAT grew 20%, 30.4% and 46.8%, respectively. EBITDA margin expanded 80bp YoY to 10.4%. (1) Volume growth for the quarter was 3% better than sales growth. (2) Guided for FY20 EBITDA margin of 11-12%, after assuming 5- 7% normal milk procurement inflation.