14 May 2020 MSILs 4QFY20 result is a mere reflection of the 10 days of lockdown in March, with the worst yet to come in 1HFY21. While the pain of the COVID- 19 crisis would result in a very weak FY21, we expect MSIL to come back stronger and recover faster than peers. Volume recovery in 2HFY21 is critical to the stocks performance. Maintain MSILs 4QFY20 revenues/EBITDA/PAT declined 15%/32%/28% YoY to ~INR182b/INR15.5b/INR12.9b. MSILs domestic PV market share recovered sharply by 450bp YoY (+250bp QoQ) to 54.4% in 4Q and expanded ~70bp to 51.9% in FY20. This was due to an adverse mix (lower diesel sales at 7% of volumes v/s 20% in 3Q). The gross margin improved ~60bp QoQ (+160bp YoY) owing to a lower discount by 300bp QoQ, partially offset by a weaker mix/Fx and one-off cost of INR1.