leverage. EBIT margin expanded 440bp QoQ (+30bp YoY) to 13.8% (est. of 11.9%). Lower other income and a higher tax rate restricted PAT growth to 3.3% YoY (+60% QoQ) to ~INR24.8b (est. of INR23.3b). Earnings call highlights: a) MSIL's festival season sales grew in double-digit. Inventory levels would be ~2 weeks by end-October 2017 (normal inventory of 3-4 weeks). b) Rural volumes have grown 21.5% in 1HFY18. c) Impact of commodity price inflation would reflect in 2HFY18. On a YoY basis, commodity prices are higher by 200bp (% of sales) in 2QFY18. d) With higher...