While European operations (~30% of consolidated sales) already have a structurally lower margin profile, plant utilisation levels there and in India are expected to come under additional stress (especially in H1FY21E) on the back of slow resumption of manufacturing activities. However, the impact of lower capacity utilisation would be counteracted by improvement of channel mix in favour of aftermarket and cost rationalisation initiatives (ATL is targeting 20% reduction in fixed costs during FY21E). Benign prices of key inputs i.e. rubber and crude oil derivatives are an added tailwind. We build...