Performance impacted by seasonal overhang; Expect recovery ahead KNR Constructions' (KNRC) 3QFY16 performance has been impacted by heavy rain and floods in its key project areas as top-line came in merely at Rs2.03bn (-5% yoy and -4% qoq). Operating profit increased by ~6% yoy to Rs316mn as against our estimate of Rs327mn. However, EBITDA margin stood strong at ~15.5% (+158bps yoy) as KNRC hardly compromises on margins while bidding for any new projects. We continue to maintain our positive stance on KNRC mainly on account of its healthy and quality order book (~4.1x TTM revenue). Furthermore,...