HG Infra Engineering (HGINFRA) has reported a better-than-expected performance in 1QFY20 despite a marginal misses on revenue front, which grew by 17% YoY to Rs5.26mn (vs. our estimate of Rs5.35bn). While EBITDA grew by ~19% YoY to Rs795mn, EBITDA margin stood at 15.1% (+21bps YoY and -96bps QoQ) vs. our assumption of 15%. Higher-than-estimated margin and lower finance cost led to better-than-estimated 27% YoY growth in PAT to Rs344mn (vs. our estimate of Rs312mn). Having secured orders worth Rs36.5bn in FY19 (EPC components), HGINFRA did not bag any order in 1QFY20 due to slowdown in ordering activities. Order backlog stands at Rs57.1bn (2.7x of TTM revenue) as of 1QFY20-end vs. Rs62.2bn in FY19. Further, gross borrowings...