Performance at the gross margin level in Q4FY21 surprised us positively. As against our expectation of 360 bps QoQ contraction on account of sharp increase in prices of key inputs over the past few months, the deterioration was limited to 240 bps. ATL undertook a price hike of 4.5% in India replacement segment in H2FY21. Going forward, we believe margins at the blended level would face pressures in the form of ongoing commodity cost escalation and dip in India channel mix (sales to OEMs set to grow faster than sales to aftermarket). However, completion of Dutch plant...