It expects cost-cutting efforts to boost margins, with volume recovery and the Premium portfolio outperforming. 25.6%), weighed by a weaker product mix (lower export mix and Apache) and the impact of the BS6 cost inflation (as contribution margins are yet to be Furthermore, op. Interest cost increased due to additional borrowings in 1QFY21 to ensure The company expects demand recovery in 2HFY21, with TVSL performing better than the industry on account of its portfolio. Apache faced severe production-related challenges, which impacted the mix in Expect margins to improve in 2H, driven by cost cutting and focused market strategy. would be INR3b for FY21 and investment in TVS Credit would be We upgrade our FY20/FY21 EPS by 2%/5% to INR10.3/17.5 to reflect volume recovery. We expect TVSLs market share gains to slow as there are now only limited product gaps in its portfolio. We upgrade our FY20/FY21 EPS by 2%/5% to INR10.3/17.5 to reflect demand recovery.