Pidilite reported sales growth of 8.6% YoY led by 9.4% volume growth YoY (domestic) in Q1FY17. Consumer & bazaar (C&B) segment recorded sales growth of 9.4% YoY led by 9% volume growth, addition of the water proofing business and strong performance of overseas subsidiaries. Besides, revenue growth of industrial segment was largely driven by ~12% YoY volume growth • EBITDA margin expansion of 134 bps YoY was mainly due to saving in raw material cost by ~400 bps YoY. However, gains were marginally offset by an increase in other expenses and employee expenses by ~200 bps and 50 YoY, respectively. Higher tax charges were due to the end of benefits of some manufacturing plants. PAT growth at ~16% YoY was due to an increase in EBITDA margin • On a constant currency basis, the company’s overseas subsidiaries (excluding newly started business) recorded sales growth of 14% YoY (constant currency basis) to ~| 174 crore. We have modelled consolidated revenue, earnings CAGR of 15%, ~24%, respectively, for FY15-18E supported by higher EBITDA margin