increased to 4.7% (up 160bps YoY and 20bps QoQ) as operating leverage has reducedcostofretailby70bpsYoY,up40bpsQoQ(salespreGST).Inventoryat79 days (80days in March 2017) and Net debt of Rs9.6bn (Rs9.2bn in March 2017) showssustainabilityofoperations.Weexpectmarginexpansiontosustainledby fullsetoffininputtaxes,efficienciesinsupplychain,operationalimprovementin easydayandEZonerestructuring.WebelieveHypercityacquisitionwillcontribute positivelypostFY18andaccumulatedlossesofRs7.5bnwillprovidetaxshield.We estimate52%PATCAGR(atmarginaltaxrate)overFY1720andvaluethestockat...