VIP reported better than expected profitability in Q3FY20 although top-line was lower than our forecast. VIP's net sales remained flat YoY at Rs4,324 mn (4.3% below our forecast) as it lost market share. Nevertheless, EBITDA margin was 136ps ahead of our estimate at 15.7%. Gross margin expanded 560bps YoY to 53.3% due to improved terms in sourcing raw materials. Looking ahead, the company foresees challenges in procuring soft luggage from China due to the outbreak of coronavirus. Nevertheless, VIP believes it remains better-placed...