Aided by strong growth across geographies in formulation segment, Aurobindo Pharma (ARBP) has delivered a better-than-expected performance in 1QFY20 with its sales/EBITDA/PAT exceeding our estimate by 4%/9%/9%, respectively. Its revenue grew by 28% YoY to Rs54bn led by US business (+43% YoY to US$387mn), ARV (+104% YoY), Europe (+16% YoY) and RoW (+22% YoY). Gross margin rose by 266bps YoY and up 262bps QoQ to 57.8% due to better product and business-mix, which led to 273bps YoY and 102bps QoQ improvement in EBITDA margin to 21.1%. Led by strong sales performance and low YoY base, EBITDA grew 47% YoY to Rs11.5bn. Resultantly, reported PAT grew by 39% YoY to Rs6.4bn. Net debt sequentially declined...