MMs festive season retail sales for Tractor declined 4%, while it grew 23% for the Auto segment; (b) 2HFY20 PV industry outlook - UVs to grow 12-13%, cars to decline 8-10% and overall PVs to decline 5-6%; (c) Tractors should decline 7-8% (v/s earlier guidance of up to 5% decline) in FY20; (d) Inventory Autos 5-6k units short of target and Tractors are at targeted level but would further reduce by 1-1.5k in 3QFY20; and (e) It has reduced discounts in Auto segment post the festive season. Net revenues (M&M;+MVML) declined ~14.5% to ~INR109.4b (v/s est EBITDA margins at 14.1% (v/s es.t 12.2%), declined ~180bp YoY (+50bp QoQ). PBIT margins for Tractors declined 80bp YoY (flat QoQ) to 19.3%, impacted by PBT at ~INR17.6b (v/s est. Further, we expect continued ramp-up in non-tractor mechanization (implements, harvesters etc.), which should result in stronger We expect headwinds for both pick-up UVs (~21% of FY19 volumes) as well as passenger UVs due to on-going weak demand environment as well as due to substantial price increase due to BS6 compliance.