Hikal reported a robust operating performance with 16% growth in revenues to Rs 1251mn coupled with beyond expected 860bps expansion in the operating margins to 38.6%, resulting in 50% growth in the operating profits to Rs 483mn during Q2FY10. The growth in revenues was mainly led by 29% rise in the pharmaceutical sales to Rs 851mn. But the crop protection segment saw 19% fall due to seasonality factor. On the other hand, the superb margin performance was driven by improvement of revenue mix (as the high margin pharma segment contributed 72% to the top line in Q2FY10 against 61% in Q2FY09) and smart saving in the material cost as the company has commenced its newly set up solvent recovery unit during the quarter (which by itself resulted over 400bps expansion in margin and which is likely to be sustainable in the subsequent quarters).