27 July 2020 While revenue decline of 45% YoY was in line with our expectations, aggressive cost rationalization measures led to a strong beat in earnings. Employee costs were also lower by 27% YoY on account of certain voluntary actions, which should normalize from 2QFY21. As demand recovers, we expect the large part of these cost elements to scale back. However, the outlook remains hazy due to the local lockdowns; hence, the management appears cautious on extrapolating the June run-rate to the coming quarters. The results of peers suggest that with a demand level of 8085% v/s last year in July, Factoring cost savings in 1QFY21, we increase our FY21/FY22 EPS estimates by 14%/4%. The deterioration in working capital was disappointing, but this should normalize in the coming quarters. Maintain Revenue declined 45% to INR14.8b and was in line with our expectation.