We maintain BUY with a reduced one year TP of Rs 7,400 (based on 22x Dec'20 EPS). Marutis 3QFY19 results (PAT of Rs.14.9B, -17% YoY) disappointed as EBITDA margins came in at 9.8% (which was significantly below estimates). The OEM offered higher discounts towards the year end to normalize channel inventory, post a weak festive season. Thus, discounts increased to Rs.24.3K in 3Q (from Rs.18.7K QoQ,). Margins were also impacted by a combination of adverse factors including higher Commodity prices (80bps QoQ) and FX impact(30bps), one time gratuity provision of Rs.480m and higher marketing spends.