Revenues grew 12.9% YoY to | 3725.9 crore (I-direct estimate: | 3804.0 crore) on account of 20.5% growth in the US to | 1703.9 crore (I-direct estimate: | 1727 crore). The Europe business grew 12.1% to | 831.2 crore (I-direct estimates: | 856.7 crore) . EBITDA margins increased 188 bps YoY to 23.9% (I-direct estimate: 23.5%) mainly on account of an improvement in gross margins. Net profit grew 23.8% YoY to | 585.0 crore (I-direct estimates: | 565.9 crore) mainly due to a better operational performance.

Valuation: The management is sounding extremely confident about the margin improvement and debt reduction on the back of an improved product mix (Increasing injectables contribution in the US) and improved operating leverage. They maintain theirr target price of | 1055, based on 22x FY18E EPS of | 48.0.