Q3 Revenue increased 16% y-o-y (-7.5% q-o-q) to Rs 74 bn (our estimate: Rs 75.5 bn), led by 26% y-o-y volume growth. Realisation declined 7.8% y-o-y (-1.7% q-o-q) to Rs 58.8k\/unit (our estimate: Rs 59.9k\/unit), led by the unfavourable product mix and the FX impact (-50bp q-o-q). Ebitda margin impacted by multiple factors Gross margin shrank 460bp y-o-y (-60bp q-o-q) to 27% (in line). Ebitda declined 7.5% y-o-y to Rs 11.7 bn (our estimate: Rs 12.1 bn), translating into an Ebitda margin of 15.6% (our estimate: 16%; -400bp y-o-y, -150bp q-o-q). The sequential contraction in the margin was led by the impact from low 3W sales (-40bp), RM (-40bp) and FX (-50bp). However, higher other income, lower depreciation and lower tax led to a 16% y-o-y increase in PAT to Rs 11 bn (our estimate: Rs 10.6 bn). For 9MFY19, revenue\/Ebitda\/PAT grew 24.1%\/ 9.1%\/ 11.9% y-o-y. Management commentary (a) Domestic motorcycle industry to grow 8-10% in FY20. Q3FY19 retails increased 8%; (b) BJAUT\u2019s dealer inventory at 6 weeks; (c) targets 2W market share of 24% (from 20% currently); (d) took price increase of Rs 700\/unit for CT100; (e) higher sales of Platina helping BJAUT to attain Ebitda breakeven in Economy segment; (f) expects domestic 3W sales of 100k (+10% q-o-q, -18% y-o-y) in Q4FY19; (g) motorcycle exports to emerging markets to grow 8-10% in FY20; (h) USD\/INR realisation at 68.9 (v\/s 69.4 in Q2FY19). FX hedging for FY20 underway; should realise 71\/USD if the spot rate remains stable; (i) \u2018Urbanite\u2019 electric 2W will be launched in 6-9 months. Valuation view Bajaj Auto trades at 14.1x FY20\/21e EPS. Maintain Buy with a target price of Rs 3,045 (16x Mar\u201921e consol. EPS).