4 February 2020 TVSLs strong operating performance (driven by cost reduction), despite the volume weakness (op. leverage), was commendable and instills confidence of double-digit margins by FY22 as volumes recover. However, our FY20/21E EPS is largely unchanged as the cut in our volume estimates offsets the upgrades in the margin estimates. We maintain with a TP of ~INR460 (~18x Mar22E consol. Revenue/EBITDA declined 11.5%/3% YoY to ~INR41.2b/INR3.6b, while adj. PAT was up 1% YoY at INR1.8b. For 9MFY20, revenue/EBITDA/PAT declined ~6%/2%/4% YoY. Volume declined by ~17% YoY (-7% QoQ). Realizations were up ~7% YoY favourable FX.