TVS Motors Limited's (TVSM) Q2FY2021 results were higher than our as well as consensus estimates, driven by better-than-expected margin performance. Overall revenue grew by 6% y-o-y, driven by an 8% y-o-y increase in realisation due to price hikes on account of BS6 norms. Volumes dropped marginally by 2% y-o-y. Operating profit margin (OPM) stood at 9.3%, highest in the past decade and beating our expectation of 8.5%. Margin improved on a y-o-y basis despite cost pressures on account of BS6 norms. Cost-control measures led to margin improvement. Demand in domestic market has improved, driven by strong rural...