MSIL Q1FY21 results were below our and consensus estimates at operating and PAT level. EBITDA loss came at Rs8.63bn vs our estimated loss of Rs633mn. Reported loss was Rs2.5bn vs our estimated loss of Rs573mn. We believe lockdown and risk aversion has significantly impacted footfalls at dealerships. We expect demand for 4W to remain muted even post lockdown and lower replacement demand. We expect 4W industry to decline ~15-18% in FY21 and more demand for pre-owned cars, subscription based models and small cars. We cut our FY21 volume/revenue estimates by 7%/12% respectively and expect recovery in FY22 with 11%/15% increase in volume/revenue. We change our rating to REDUCE (earlier...