Amara Raja Batteries (ARBL)s 2QFY2016 results have come in line with estimates. The top-line continued to grow in double digits, but the growth was slightly moderated given the decrease in realization. Realization declined on account of passing of lower lead prices to consumers and due to slowdown in the UPS segment. Still, ARBL managed to keep its margins above the 17% mark. The net profit grew in robust double-digits, and came in line with estimates. Top-line maintains double-digit growth: ARBLs revenues grew a healthy 9% yoy to Rs1,158cr on back of a robust 21% yoy growth in the automotive segment. The industrial segment was a bit subdued, growing by 5% yoy, due to slowdown in the UPS segment. Margin improvement and lower depreciation boosts profitability: For the quarter, ARBLs net profit grew a robust 22% yoy to Rs122.6cr. Margin improvement due to soft lead prices coupled with lower depreciation expenses boosted the profits. Outlook and Valuation: ARBL is likely to continue gaining market share in the automotive battery segment. The strategy followed by automotive OEMs of sourcing from multiple vendors as against having a single vendor is likely to benefit ARBL. Further, given the strengthening distribution network in the Western...