SML reported strong results for 2QFY17, although moderately below our and consensus expectations. Topline stood at Rs 3bn ( 13.5%), volume growth of 13% YoY was offset by muted net ASPs on lower bus mix (45% of total volume). EBITDA margin came in at 5.9% ( 121bps YoY) as product mix saw a significant shift towards the lower-margin cargo segment.