Sequent Scientific (SSL) has posted revenue of INR 3,506mn with a 1.2% YoY increase, which was 13% above our estimate of INR 3,102mn. The revenue beat was mainly driven by higher than expected growth in formulation business; However, API business de-grew by 10.4% (YoY) due to lower offtake of Albendazole (key product in API). The formulation business grew by 6.1% (YoY), led by strong performance in LATAM (+34.5% YoY) and Europe (+10.3%). India business growth moderated (+4.2%) due to the base effect of Zoetis commercialization in Q2FY21. Currency depreciation overshadows double-digit growth in Turkey business (de-grew by 6.6% YoY). Revenue from Emerging markets declined by 23.4%. Management expects a strong recovery in the API business during the second half of the year. EBITDA margin witnessed a sharp contraction of 1067bps to 5.6% level (lowest in last four years), which was 632bps lower than our estimate due to negative operating leverage in API business and higher employee cost (due to ESOP). Despite income tax credit (tax rate 250% vs 20.7% in Q2FY21), reported PAT came at INR 143mn (-52.8% YoY) compared to our expectation of INR.159mn due to operationally weak performance. Management maintained revenue...