HPCLs lower-than-expected refining and marketing margins led to an EBITDA miss in 3QFY20. We have cut our FY20 EPS by 21% owing to the huge miss during the quarter and in light of the weak GRM outlook (trimmed GRM from USD4.2/bbl to USD3.0 for 4QFY20) and the lack of improvement in In 3QFY20, the company recorded higher-than-expected marketing sales volumes, which partially offset lower-than-expected marketing margins. Implied gross marketing margins at INR4.1/liter were lower than est. For 9MFY20, core GRM was lower by 54% YoY to USD2.4/bbl, with refining throughput down 9% YoY, led by shutdowns for BS-VI upgradation. Marketing margin was higher by 13% YoY to INR4.1/liter, while domestic sale of petroleum products was up 5% YoY at 30.1mmt. We have cut our FY20 EPS by 21% owing to the huge miss during the quarter and in light of the weak GRM outlook (trimmed GRM from USD4.2/bbl to USD3.0 for 4QFY20) and the lack of improvement in diesel cracks ahead of IMO.