Volumes grew32% YoY (+7.6% QoQ) to 889.1k units. Realizations rose 0.7% QoQ (+6.3%YoY) to INR44.9k (in-line) due to a favourable mix. Gross margin of 26.2%(est. of 27.1%) contracted by ~110bp QoQ (+130bp YoY), primarily due to~120bp impact of RM inflation. EBITDA margin of 7% came in below our estimate of 8.1% due to RM inflation, higher staff cost (+30bp, due increase in minimum wages in TN/Karnataka) and ~50bp impact of Auto Expo & new product launches. Further, higher depreciation and interest cost restricted PAT growth to ~31% YoY (INR1.65b v/s est. INR1.74b).