9 November 2019 of lead deflation has resulted in revenue decline of 3% YoY to INR17b (v/s est. Volume growth was driven by strong growth in aftermarket, exports and UPS, but diluted by decline in OEMs and telecom. Auto volumes grew 7-8% while Industry volumes grew 6- 7%. Average spot lead prices in 1QFY20 (since impact with 3 months lag) were lower by ~8.5% QoQ and ~18% YoY, which hurt revenue growth. Gross margins improved 500bp YoY (+350bp QoQ) due to lower lead prices and better mix (lower OEM contribution). However, operating deleverage diluted EBITDA margin expansion to ~350bp YoY (+190bp QoQ) at 17.2% (v/s est. This coupled with lower tax boosted adj. PAT growth to ~80% YoY to INR2.2b (v/s est.