Despite 3.5% price hike initiated by GSK in the fiscal, its gross margins remained flat at 64.1%, primarily due to sharp rise in the prices of some Agri-inputs i.e. sugar and wheat. A&P; spend declined by 170bps yoy to 12.4% sales, while employee cost rose by 110bps yoy to 12.8% mainly due to negative operating leverage. The resultant EBITDA margins increased 40bps yoy to 18.4% of sales. Other income grew by just 4.6% yoy to Rs1.2bn, although business auxiliary income rose by 13% yoy in 2QFY17. The commission which the company used to earn from distributing GSK OTC products...