2QFY18 earnings performance and management commentaries indicate tell-tale signs of demand revival, especially in rural consumption. The first quarter post GST implementation came with attendant anomalies, especially in accounting. However, corporate commentaries suggest gradual return of normalcy in trade channels. As GST settles down further, India Inc expects demand trends to strengthen in 2HFY18. 2QFY18 has come as breath of fresh air after many quarters of misses, disappointments and downgrades. Earnings quality has also improved substantially, as discussed in greater detail in our recently released India Strategy.