Healthy revenue growth along with stable margins: SKF has clocked aturnover growth of 1.3% sequentially & 9.7% YoY growth for Q2FY17 owing toimproved volumes. EBITDA margin has slightly contracted by 10 bps QoQ mainly on account of 4.0% rise in raw material costs & 9.7% rise in other expenses. However,compared to YoY, EBITDA margin has expanded by 90 bps due to higher salesgrowth. EBIT & Net profit margins have contracted by 10 bps each sequentially to reach 10.1%& 8.5% in Q2FY17 and the same have expanded by 130 bps & 80 bps YoY. On a larger note, the margin performance is in line with our estimates for FY17E.