3QFY20 revenues/EBITDA/PAT grew -3%/2%/38% YoY to INR24.1b/ Revenue growth was driven by strong volume growth in the auto aftermarket business, UPS batteries and export market. However, weakness in OEM business, telecom and infrastructure batteries along with impact of lower lead prices resulted in ~3% revenue decline. Higher other income and lower tax boosted YoY PAT growth by ~38% to ~INR2.1b Demand was weak from automobile OEM, telecom and other infrastructure segments. The company is focused on cost control measures and technology upgrades While the industry structure remains largely duopoly, EXID is the largest lead acid battery manufacturer in India with leadership in auto OEMs and the We downgrade our EPS estimates by ~4% for FY21 to factor in the lead price The stock trades at valuations of 18.2x/16.4x FY21/FY22E consol. Further, we expect migration in the replacement segment from the unorganized sector to organized players like EXID and AMRJ, driven by reforms such as GST and lower corporate tax rates.