For 2QFY2016, MT Educare reported results above our estimates. The companys top-line growth was strong mainly due to firm growth in Robomate product sales as well as Government Projects segment. However, the core coaching business was subdued during the quarter. On the operating front, the company saw pressure due to increase in other costs. However, higher other income and a lower tax expense boosted the companys overall profitability. Strong growth in Robomate product sales and Government Projects segment boost overall consolidated top-line: For the quarter, MT Educare registered a doubledigit growth in its top-line, ie of 26% yoy to ~Rs83cr, on back of strong growth in Robomate poduct sales (at Rs17.6cr) as well as in the Government Projects segment. However, the core coaching business was subdued during the quarter. PAT grew ~21% yoy: Despite of operating margin pressure, which was on account of higher other costs, MT Educare posted a net profit growth of ~21% yoy to ~Rs14cr, owing to strong revenue growth, higher other income and lower taxes. Outlook and valuation: We expect MT Educare to report a strong top-line and bottom-line growth in the coming financial years (FY2016E and FY2017E) on back of healthy growth in coaching business...