to INR45.7b (a) Jewelry sales grew 29% YoY to INR36.5b, 9 November 2018 but the segmental margin shrank 200bp YoY to 10.4%. (b) Watches sales rose 17.5% YoY to INR6.8b, with the EBIT margin expanding 210bp YoY to 16.4%. (1) TTAN witnessed 29% growth in the 40-day Dussehra- Diwali festive period; likely to maintain momentum for the remainder of valuation loss of INR180m, which will reverse in the subsequent quarter and (c) INR150m compensation cost to franchisee toward taking over two large profitable stores in Hyderabad. Lower-than-expected 2QFY19 margins have led us to cut our FY19/20 EPS estimate by 3.