KNR Constructions (KNRC) reported weak revenue and EBIDTA whilst PAT was in line. Back ended order book/new order wins have yet not translated into execution. Expect revenue pickup from 3QFY16E. EBIDTA margins expanded 122bps/78bps yoy/qoq basis, owing to lower raw material costs. Balance sheet remains healthy with net debt at Rs 590mn (Rs 210mn decrease qoq) & net D/E at 0.1x (vs 0.14x end FY15).Order backlog stood at Rs 35.4bn.