In Q2FY17, total revenues of IPCA Labs increased by 15%YoY to Rs 8,529mn (our estimates Rs 8621 mn) mainly due to increase in domestic formulations. The Companys operating margins increased by 342 bps YoY to 14.7% (lower than our estimates 17.2%) during the quarter mainly due lower gross margins, higher staff cost and overheads. Its net profit has increased by 519% YoY to Rs 557 mn in Q2FY17 but lower than our estimates of Rs 739 mn.