Unichem's total revenues increased by 6.2% YoY to Rs 3.09 bn in Q1FY16 lower than our estimates of Rs 3.16 bn. Operating margins declined by 120bps to 13.8% (higher than our estimate of 11.7%). Better gross margins and lower other expenses contributed to better operating margins. Net Profit de-grew by 4.7% YoY to Rs 288 mn as against our estimates of Rs 244 mn.