BKT derives more than 54% of its revenue from Europe, which currently is facing a downswing in the tractor market. The other major markets are the US and India from where it derives ~ 15% of its revenues which, again are not conducive at the moment. With rubber prices falling drastically, the company is enjoying theoperating margin cushion where, for H1FY16, margins expanded significantly by 600bps (YoY). Going forward, we expect revenue to fall by 4.0% for FY16E and improve nominally by 3.5% for FY17E on account of volume contraction especially in the Europe and the USA.