DABURs consolidated net revenue contracted by 5% YoY to Rs 19.1bn, below our expectations. EBITDA and APAT increased by 0.6% each. Domestic business (71% of sales) grew 0.7%, with 2.4% volume growth. A mild recovery has been seen, as 3QFY17 volumes contracted by 5%. Higher dependence on the rural segment and wholesale channels were the key reasons for the recovery being mild.