J Kumar Q2FY17 performance was below our expectations on account of muted execution during the monsoon season. Revenue declined 6% YoY to Rs 3.09bn (vs. our estimate of +8% YoY) while EBITDA margin remained flat YoY at 18.2%. Thus, EBITDA declined by 6% YoY to Rs 563mn. Net profit increased 5.3% YoY to Rs 230 mn led by higher other income. Management states that the execution has been impacted in Q2FY17 because of monsoon and some unexpected delays in Mumbai metro lines 2 & 7. We have revised downwards our earnings estimates for FY17E/18E by 16%/20%, factoring in delay in execution and reduction in OPM.