The management expects double digit volume growth for FY17E. During FY16 overall volumes of the company grew by 5.5% YoY (vs flat 3W industry growth) to 33893 units. Domestic volumes registered growth of 5.5% YoY (vs 1.03% growth of domestic 3w Industry). We believe Atul Auto is likely to benefit from increase in rural income and spending on the back of good monsoon expected in this year. The company has a strong presence in semi rural and rural market. EBITDA margins expanded in FY16 mainly due to operational efficiencies and lower input cost. The company recorded highest ever EBITDA margins (14%) in FY16 and expects 50‐100 margin expansion in next two years due to benefit of operating leverage.