KNR Constructions (KNRC) delivered 4QFY15 beat, outperforming our Q/FY net profit estimate by 21.9%/23.5% yoy. EBIDTA margins contracted 72bps/67bps for the Q/FY on yoy basis, largely driven by higher other expenses (Rs 70mn 4QFY15 doubtful debt provisioning). Balance sheet remains healthy with net debt at Rs 800mn (Rs 5mn increase yoy) & net D/E stood at 0.14x (vs 0.15x end FY14).