JKIL posted 8% YoY growth in Q1FY16 standalone sales to Rs3.6bn (6.3% lower than our expectations). The growth in the revenue for the quarter was due to higher contribution from projects in Maharashtra. EBITDA margin improved by 50bps YoY to 18.5% (50bps above our expectation), due to lower labour charges and other expenses (which as a percentage of net sales fell to 4.4%/5.5% vs 8.5%/7.2%, respectively in Q1FY15). Net profit grew 13% YoY to Rs259 mn (4.1% lower than our expectations), primarily due to better operating performance.