KEC International (KEC) has reported a healthy performance in 1QFY20 with its revenue growing by 15% YoY to Rs24.1bn in-line with our estimate of Rs24bn led by a strong 25% YoY growth in T&D; segment. EBITDA increased by 16% YoY, while EBITDA margin rose by 10bps YoY to 10.4%. PAT increased by 4% YoY to Rs886mn impacted by lower other income (down 75% YoY) and higher interest cost (up 23% YoY). While its order book stood at Rs190bn (1.7x of FY19 revenue) as of 1QFY20-end, it is favourably placed (L1) in orders worth ~Rs35bn. Order inflow declined significantly by 65% YoY to ~Rs10bn due to weak ordering activity in domestic T&D; business and no new order in railway segment due to General Elections. Despite lower order inflow, the...