HUVR's 3QFY22 result was broadly in line with our volume, sales, and gross margin estimate, but sharply lower ad spends (down 14.3% YoY and 260bp YoY as a percentage of sales) led to a 8.5-9% beat in our EBITDA, PBT, and adjusted PAT estimates. Since the largest player (also the first to report its result) has cut ad spends, it remains to be seen whether it is a harbinger of a trend that its other Staples peers also adopt to shore up margins in a difficult commodity cost environment. Two factors have held back HUVR's performance over the past few quarters...