3 QFY18 operating performance at the consolidated level was below expectations. Sales grew 18% YoY to INR11.2b (est. ofINR12.1b), impacted by a weak performance in the environment (+3% YoY,INR1.7b) and chemicals (7% YoY, INR0.9b) segments. Gross margin shrunk590bp YoY to 47.4% due to adverse raw material price movement and execution of lower-margin orders. Despite a 590bp contraction in the gross margin, the operating margin shrunk by only 80bp YoY to 8.5% (est. of 9.0%)due to lower other expenses (-320bp YoY to 23.5 %). EBIDTA grew 9% YoY toINR0.96b. Adj. net profit rose 9% YoY to INR0.6b (est. of INR0.78b)