LG Balakrishnan & Bros (LGBBL) reported a slightly better-than-expected standalone topline and bottom-line growth for 2QFY2016. The Transmission segment, which contributed ~79% to the companys total standalone revenue, reported a growth of 11% yoy, while the Others segment reported a decline on the sales front. On the bottom-line (standalone) front, the company unperformed due to subdued sales growth and poor operating performance. Top-line grew by ~6% yoy: The standalone top-line grew by ~6% yoy to ~Rs282cr, which is higher than our estimate of ~Rs267cr. The Transmission segment revenue was up ~11% yoy; the segment accounted for ~79% of the standalone revenue of the company. The Others segment reported a decline in sales. Poor operating performance and lower other income mar profitability: The company reported an operating profit of ~Rs36cr, which is down 0.2% yoy. The operating margin contracted by by 74bp yoy to 12.8%, primarily on account of higher employee costs and other expenditure. The reported standalone net profit declined by ~19% yoy to ~Rs17cr, but is higher than our estimate of ~Rs16cr. However, on adjusting for the one-time exceptional gain incurred in 2QFY2015, the PAT during 2QFY2016 actually grew by 5% yoy. Outlook and valuation: LGBBL is a market...