17 June 2020 Ipca Laboratories (IPCA) ended FY20 on a strong note, with 42% YoY growth witnessed in earnings to INR6.5b. This was led by 16% YoY growth in Domestic Formulations (40% of sales), 32% YoY growth in the API segment (20% of sales), and healthy improvement in profitability. IPCA remains on track to improve MR productivity in DF, with cost efficiency expanding the business scope in API and International Generics. We remain positive on the company owing to the sustained outperformance of the DF segment, improved growth prospects in API, and better operating leverage. Maintain Buy. YoY, led by strong growth in the Exports (Generics), API, and DF businesses, partially offset by decline in Branded and Institutional exports. Exports (Generics) grew 40% YoY to INR1.7b (15% of sales) and DF sales 21% YoY to INR4.3b (40% of sales). API grew 30% YoY to INR2.8b (26% of sales) for the quarter, with Export APIs growing at 27% and Domestic APIs at 41%.