Divis Lab Net revenues are up 3.4% YoY to Rs 10.30 bn lower than our expectation of Rs 11.5 bn for the quarter due to higher base impact, product mix and better performance in Carotenoids. The Operating margins stood at 29% (lower than our estimate of 32.1%) as against 38.7% in Q2FY16 on account of onetime bonus on completion of 25 years and higher other expenses including forex loss and ex-gratia to research. Net Profit was down by 24% YoY to Rs 2232 mn (lower than our estimates of Rs 2,759 mn).