For 2QFY2016, Motherson Sumi Systems Ltd (MSS)s results have come in ahead of estimates. The top-line grew strongly by 15% yoy led by robust growth in SMP and pick up in the standalone business. Given the healthy revenue growth and soft commodity prices, the adj net profit grew at a faster pace of 27% yoy. Top-line growth remains strong: MSS maintained its double digit top-line growth momentum, reporting sales of Rs9,198cr for 2QFY2016, implying a growth of 15%. The growth was led by SMP, whose revenues grew 18% yoy to Rs4,399cr, despite the depreciation in the Euro. Pick-up in order execution boosted growth. (In Euro terms SMP grew 31% yoy). Standalone revenues grew 10% yoy to Rs1,393cr led by recovery in the passenger vehicle industry. However, SMRs revenue growth moderated to 3% (at Rs2,424cr) impacted by the Euro depreciation. But in Euro terms, SMRs growth continued to remain strong growing by 14%. Operating leverage along with soft commodity prices boost profitability: Given the robust double digit top-line growth and soft commodity prices, MSS operating margins expanded 130bp yoy to reach 10.4%. Given the strong operating performance, MSS net profit grew strongly by 27% yoy to Rs289.3cr. Outlook and valuation: MSS...