KEC International (KEC) has delivered a superb performance in 4QFY18. Its net profit surged by 35% YoY to Rs1.96bn (higher-than-our estimate) led by strong execution and lower depreciation. However, its EBITDA margin declined by 30bps YoY to 10.1% owing to higher input cost (76.2% vs. 68.4% in 4QFY17), which was partially offset by lower other expenses. Looking ahead, we expect KEC's earnings to clock 25.9% CAGR over FY17-20E on the back of strong order book, improving margin profile and healthy outlook in T&D; and other emerging segments. Thus, maintaining our positive stance, we reiterate our BUY recommendation on the stock with a downwardly revised Target Price of Rs434....