Kalyan reported a good performance in 3Q with 13% (consol) revenue growth. Gross margin of India business was flattish at 16.1% (largely due to increase in competitive pressure on gold prices). Non-south markets now contribute ~43%. We note (1) higher share of non-south revenues and (2) increased studded sales are natural tailwinds for Kalyan’s margin profile and the benefit should continue to accrue for next few years.