Operating results below estimates: Tata Motors 2QFY2016 results have come in below our estimates on the operating front. Consolidated revenues grew marginally by 1% yoy to Rs61,318cr (coming slightly ahead of our estimates of Rs57,484cr). Growth was subdued, mainly due to flattish top-line at JLR. JLRs volumes grew a healthy 12% yoy during the quarter but an adverse product (higher sales of relatively lower priced cars in the companys product portfolio) and regional mix (lower China sales) led to lower realization, thus dragging the top-line. The consolidated operating margin at 11.2% was below our estimate of 13.4%. JLRs EBIDTA margin at 12.2% was significantly below our estimate of 15%. JLRs margins were impacted by lower China sales, adverse product mix and higher launch expenses. During the quarter, Tata Motors reported a loss at the net level due to a one-off charge of Rs2,493cr related to damage caused by fire explosions caused at the China port location, which affected JLR vehicles. However, Tata Motors had a tax credit to the tune of Rs704cr which resulted in the Adj profit coming in at Rs2,223cr for the quarter (better than our estimate of Rs2,041cr). Outlook and valuation: JLRs volumes are likely to recover...