MMFS 4QFY16 results exceeded expectations, even after factoring in seasonal improvement. Strong recoveries led to (1) GNPA decline of ~19% QoQ despite the shift to 120DPD, (2) Calculated NIM improvement of 240bps QoQ, and (3) Lower provisioning requirement (1.1% ann. vs. 3.5% QoQ). Core earnings at Rs 10bn ( 37% QoQ) and net earnings at Rs 3.7bn ( 5.5x QoQ) were 10% and 41% ahead of estimates.