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News: Revenues grew ~20% YoY to Rs 5080 crore driven by the US, India and Europe, Middle East and Africa (EMEA) markets. EBITDA grew almost 2x YoY to Rs 1022 crore and EBITDA margins stood at ~20% (800 bps improvement) mainly on the back of strong GPMs (66% vs 60%). US sales grew ~24% YoY to Rs 1885 crore on the back of legacy (respiratory) products market share gains and new launches. India sales grew ~13% to Rs 1735 crore driven by new launches and strong performance of existing products and in-licensing deals.
Views: After a gap of almost 9 quarters, the EBITDA margins have hit the 20% threshold mainly driven by strong GPM performance. This suggests that the product mix for the company has improved significantly with strong India performance and recently launched complex products in the US. Going ahead the sustainability of this performance especially on the margins front would be the key determinant for investors sentiments.
Impact: Positive