Aided by a healthy order inflow over last 12-months with execution ramp-up from new projects, KNR Constructions (KNRC) has reported a better-than-expected revenue booking in 2QFY17 with its revenue surging by ~71% yoy to Rs3.63bn way ahead our estimate. Though its EBITDA rose by strong 31% yoy to Rs457mn, EBITDA margin contracted 385bps yoy to 12.6% mainly owing to low-margin component works. KNRC's reported PAT declined by 22% yoy to Rs439mn, mainly due to increased tax outflow. We continue to maintain our positive stance on KNRC mainly on account of healthy order book (3.9x TTM revenue), strong balance sheet (0.1x net D/E) and...