31 January 2019 increased 5.3% YoY (-16% QoQ) to 1.8m units. Realizations increased 2.2% QoQ) and higher spare sales (+5% YoY). EBITDA declined ~5% YoY (-20% QoQ) to ~INR11b (in-line), with the margin contracting 180bp YoY (-120bp QoQ) to 14%. However, higher other income restricted PAT decline to ~4.5% increased 9% YoY, while EBITDA/PAT declined 1%/3% YoY. The company announced an interim dividend of ~INR55/share (FY18 (a) HMCL expects volumes to recover QoQ in 4QFY19. It guided for high-single-digit growth in FY20, led by pre-buying in 2HFY20 ahead of BS6 implementation. (b) Rural demand was muted in 3Q, but HMCL expects a recovery from 1QFY20. (c) Launch of Destini in Oct18 helped capture ~10% market share in the 125cc scooter segment at retail level. (e) Financing is not a problem so far (37- 40% of volumes are financed).