KEC International (KEC) has delivered a strong performance in 4QFY17 with its net profit rising by 90% YoY to Rs1.45bn, led by higher margin and lower interest cost. Its revenue grew by 10% YoY to Rs28.8bn compared to Rs26.1bn in 4QFY16 (vs. our estimate of Rs28.9bn), mainly due to lower T&D; sales. Further, lower sales from overseas business (particularly SAE Tower) owing to INR appreciation arrested its overall revenue growth. We expect KEC's earnings to witness 25% CAGR over FY17-19E on strong order book, improving margin profile and healthy outlook in T&D; and other emerging segments. Rolling over our estimates to FY19E, we reiterate our...