Voltas (VOLT) 4QFY20 earnings were 37% ahead of expectation led by the UCP segments outperformance. However, the cut in our TP is limited as the EMP business commands lower Revenue was flat YoY at INR20.9b, (in line with est). Due to lockdowns, secondary sales could not materialize and as such, dealer level inventory stood as high as 60 days at end-Mar20. As primary sales were also impacted, company level inventory stood at 90 Inverter ACs now form 64% of the total Split AC business and 50% of the overall Room AC business. However, VOLT is looking to focus on cash flow rather than just top line growth in the EMP segment. Market share in Frost-free refrigerators and Washing machines We expect the system level inventory to normalize by Nov-Dec20, and hence, FY22E should turn out to be a normal year. Total order book stood strong at INR78b (+57% YoY).