Key Highlights

The company reported Ebidta margin of 18.2% for the Sep 18 quarter. Lower Ebidta margin was largely due to Indian operations. Pharma offtake was lower due to change in Pharma regulations and further the transporter strike also resulted in higher costs. The Assam facility commenced operations and most of the costs incurred for the start of the facility is booked. Also some margin impact was due to time gap between actual increase in raw material price and the pass on to the customer. Adjusting these entire one offs, the Ebidta margin could have been around 19.1%.

Indian operations grew by a negative 5.2%. However management is confident of a 12% annual growth for FY 19 for Indian operations. That means H2 will be significantly better and recoup the entire losses of H1. The management has considered benefits of Assam facility, the new laminated products portfolio, pharma segment off take which is normalized from Oct onwards.

Adjusting for one offs; actually the Indian operation has grown by 5% in Sep 18 quarter. Company's wallet share has not changed.

The company is in the process of developing some technologies. New set of learning and new dynamics for growth.

Strong business development products are in pipeline. Confident of growth in H2 and FY 20

US market did very well for the company while rest of the Latin American market was flat. More wins expected in USA which may see commercial impact next year.

EU revenues were also strong and higher volumes resulted in better margins. Both US and EU markets are in strong growth trajectory.

Gross debt of around Rs 772 crore.

Is open for merger or acquisitions and also open for talks of buyouts etc.

Mission 2020 is intact in terms of sales and margin front and on ROCE front as well.

Tax rate will be around 32-33% for FY 19