12 February 2019 Sun Pharmas (SUNP) revenue grew ~16% YoY to INR76.6b (our estimate: INR77.3b) in 3QFY19, led by higher Taro and API sales. Gross margin (GM) expanded ~350bp YoY (-260bp QoQ) to 71.7%, led by better revenue growth and an improved product mix. EBITDA margin, too, expanded by 210bp YoY to 23.1% owing to GM expansion and lower employee cost (-206bp YoY as % of sales), partly offset by higher other expenses (+190bp YoY). Revenue growth, coupled with a better operating margin, led to adj. PAT of INR9.4b (our estimate: INR10.2b). PAT increased 12%/26%/26% YoY to INR216b/INR47.3b/INR29b.