Results miss estimates: Ashok Leyland (ALL)s 2QFY2016 results have come in below our estimates on account of a lower-than-anticipated top-line. Revenue grew by a robust 54% yoy and by 29% on a sequential basis to Rs4,940cr, but still, is below our estimate of Rs5,281cr. Volumes grew strongly by 51% yoy, led by a sharp 64% yoy growth in the MHCV segment. However, the blended realization grew only marginally; it came in at Rs14.08 lakh/unit, up 2% yoy, declined 4% sequentially, and is below our estimate of Rs15 lakh/unit. Lower proportion of defence supplies and exports led to a sequential dip in the realisation. Operating margin at 12% is at a record five-year high, improving sharply by 490bp yoy, and is broadly in line with our estimates of 12.6%. Soft commodity prices, better product mix (with greater proportion of higher-tonnage vehicles) and cost control initiatives implemented by the company enabled ALL to report a double-digit margin. The adj net profit, at Rs292cr, missed our estimate of Rs355cr. Outlook and valuation: ALL results were below estimates primarily due to lower realization on account of unfavourable mix. However, we expect the mix to be favourable in 2HFY2016 due to higher defence supplies and...