Top takeaways from Q1FY17: Delivered strong Q1 operating performance with 17% beat in earnings supported by 310bps positive surprise in margins and 6% beat in revenues. Guides for delayed commercialisation of its new projects –at Kakinada SEZ as well as at Vizag – during late FY18. This could hurt the modelled sales growth of 19% in FY18. Divi’s board has approved a one?time ex?gratia of Rs 790mn for its employees on the occasion of its 25th anniversary and that would hurt FY17 margins by ~150bps. Phillip Capital maintain their Neutral rating with raised TP of Rs 1200 (vs. Rs 1190 earlier).