DRL's revenues decreased by 6.6% YoY to Rs 37 bn (higher than our estimates of Rs35.8 bn) due to tepid performance across Generics (-8.7%). Gross margins were in line on YoY at 59% in Q3FY17 ( higher than our estimates of 56.2%). Its operating profit has tanked to Rs 8713mn during the quarter due to decline in revenues, higher R & D expenses. Net profit de-grew by 18.8% YoY to Rs 4.71bn (higher than our estimates of Rs 2.6 bn).