In Q3FY17, total revenues of IPCA Labs increased by 8.6%YoY to Rs 7,418mn (our estimates Rs 7598 mn) mainly due to increase in domestic formulations. The Companys operating margins increased by 181 bps YoY to 14.7% (higher than our estimates 14.6%) during the quarter mainly due to higher gross margins and lower staff and overheads. Its net profit has increased by 57% YoY to Rs 413 mn in Q3FY17 higher than our estimates of Rs 326 mn.