KNRC delivered strong 4QFY16 Rev/EBITDA/APAT, well ahead of our estimates. EBITDA margins expanded 176bps to 15.6% (757bps contraction in other expenses). The balance sheet is healthy with standalone net debt at Rs 1,004mn (Rs 144mn increase QoQ, includes Rs 785mn promoter loan) and net D/E at 0.14x (vs. 0.13x end-3QFY16).