MMFS reported PAT (adjusted for stake sale gain) of INR2.9b, exceeding our estimate by 17%, driven by net income beat of 6% (helped by lower cost of funds) and lower provisions (INR2b v/s estimate of INR2.2b). During the quarter, the company recorded one-off gains of INR650m (INR500m post tax) on sale of stake in one of the subsidiaries. PAT including stake sale wasINR3.42b. The gain was not factored in our estimates. AUM grew 13.5%/3.7% YoY/QoQ (in-line), registering sixth straight quarter of 13-14% AUM growth. With the base becoming favorable, we expect AUM growth of 16-17% in 4QFY18. Growth was driven primarily by tractors, CV and CE (+13% YoY), and SME (+1.3x YoY). On a sequential basis, CV/CE(+12%), Tractors (+10%) and Cars (+8%) were the key drivers.