Results ahead of estimates: Amara Raja Batteries Ltd (ARBL)s 3QFY2016 results have come in ahead of our estimates, driven by a strong operating performance. On the expected lines, the companys top-line grew by a healthy 16% yoy to Rs1,225cr. The Automotive segment, forming about 55% of revenues, grew in double digits on back of market share gains in both the OEM as well as the replacement segment. The Industrial segment also reported a double-digit growth, led by the telecom sub-segment (telecom forms about 50% of the overall Industrial segments revenues). Given soft lead prices and a better product mix, the companys margins improved by 240bp yoy to 18.7%, coming in higher than our estimate of 17.4%. The margins for the quarter are the highest ever in the last six years. Given the robust operating performance, the net profit at Rs136cr, came in ahead of our estimate of Rs126cr. 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, with the companys strengthening distribution network in the Western and Eastern markets, we...