31 January 2020 While the operating performance was well below expectations, all key operating matrices showed an improvement. Although TTMT faced impact from FX in JLR and higher discounts to clear inventory in India, we do believe that the structural recovery is in place and part of cyclical factors will ease. We lower our FY21/22 EPS estimate by 11%/3% to factor in the adverse FX We would buy into any weakness in the stock. India M&HCV; business is seeing signs of recovery with improved inquiries for replacement demand from large fleet operators and for tippers. We cut FY21/22E EPS by 11%/3% to factor in adverse FX. Tata Motors JLRs volumes have been under pressure in FY19 due to several headwinds. With several upgrades and refreshes coming over the next 12-18 months, as well as completion of inventory de-stocking, JLRs volumes are expected to stabilize in 2HFY20. We expect JLR's volumes (including JV) to grow at 4.