Ashok Leyland (AL) posted in line revenues ( 8% YoY to 44bn) in 3Q while the margin (-65bps YoY, 10.3%) was below our estimates. EBITDA at Rs 4.5bn ( 1.3% YoY) was hit by higher RM cost ( 81bps YoY). AL was unable to increase prices to offset commodity cost pressure. Discounting continues to be high, with average discounts at Rs 2.5-2.3k per vehicle. PAT stood at Rs 1.9bn (-13% YoY), dragged down by hit in EBIDTA margin and forex losses of Rs 637mn.