ACIL posted 11% YoY growth (highest Q1 growth in last 3 years) in Q1FY16 standalone sales to Rs2.7 bn, 11.9% lower than our expectations. The growth in sales was driven by better execution in its key business segments and projects. However, EBITDA margin declined by 133bps to 12.4% (88bps above our expectation), due to higher sub-contract cost (which as a percentage of sales increased to 21.8% vs 13% in Q1FY15).