Economic Recovery and Market Volume Unfold LLUB's net income fell 6% YoY to LKR 747.7mn, owing to a 1% YoY dip in topline to LKR 5.3bn and notable fall in net finance income (-76% YoY) to LKR 30.1mn. However, the company saw a positive impact from lower costs of sales and increase in other operating income, which resulted in an improvement at the GP and EBIT levels. The GP margin expanded to 32.5% from 30.3%, while the EBIT margin saw a modest increase to 19.7% from 19.0%. Looking ahead, we anticipate the gradual bounce back in economic activity and the potential easing of automotive import restrictions, to aid recovery in domestic market volumes. However, uncertainties persist in export markets, particularly due to economic and social challenges in Bangladesh. Considering the gradual recovery in market conditions, we recommend HOLD.