increase in KSM prices (mainly PAP) and loss of MEIS benefit (~150bps). Favourable forex and Air freight collected from customers was part of Sales which was added to Gross margin in Stock Q1FY21. However, EBITDA Margin managed lesser impact (decline of 126bps to 23.7% in Q1FY22 ) CMP (INR) due to lower other expenses (-4%YoY). GIL reported a PAT of INR 1202mn, which was above our Target Price (INR) estimate of INR 1018mn driven by ordinary operational performance. As per management, the KSM BSE code supply situation is likely to improve with an increase in the number of domestic suppliers and the recommencement of supply from the Chinese source. The management has stated that it is looking to decrease the share of core molecules from 84% currently to 60% by FY25 with focusing on launching higher-margin products across different geographies....