HSIL reported a mixed set of numbers for 2QFY2016. The standalone top-line was muted, managing to grow by a mere 1.3% on a yoy basis to Rs429cr. The raw material cost declined by 54bp yoy to 30.3% of sales and other expenses declined by 120bp yoy to 39.1% of sales. However, employee costs increased by 178bp yoy to 13.0% of sales and as a result, the EBITDA margin remained flat on a yoy basis at 17.6%. The bottom-line grew by 27.6% yoy to Rs24cr, mainly on account of lower interest expense. Dampening construction scenario, Management cautious on guidance: The Management toned down its growth guidance for the Building Products segment (in the post-1QFY2016 conference call). The Management indicated that there is overall sluggishness in the new construction market due to delayed project completions which is on account of piling up inventory and it is likely that the scenario will continue to persist in the near future. New constructions account for 88-90% of the segments business and the balance is from replacement demand. The demand scenario in the metros and in Tier-I cities is likely to remain under pressure and the company intends to penetrate Tier-II and Tier-III cities to achieve...