Pidilite Industries' (PIDI) 1QFY17 performance was below our expectations. Consolidated sales grew 6.8% YoY (est. of +18% YoY) to INR15.7b (Ind-AS). Volume growth was reportedly ~9% YoY in the Consumer Bazaar segment. EBITDA grew 15.2% YoY (est. of +25.6%) to INR3.94b. Adjusted PAT was up 16.4% YoY (est. of +23.6%) at INR2.72b. Sharp gross margin expansion: Gross margin expanded sharply by 330bp YoY to 52.3% aided by benign input costs, but the impact was partly offset by higher staff costs (+70bp YoY) and other expenses (+80bp YoY). EBITDA margins...