KNR delivered inline financial performance though execution could have been better. Delay in ADs impacted the same (Rs 500mn of work could not be billed). While we have cut our FY20E Revenue estimate by 7.1% to factor in back ended ADs, new wins in irrigation segment of Rs 8.5bn will drive EBIDTA margins higher. This has resulted in 1.3% cut to your FY20E EPS and 3.5% increase to our FY21E EPS. Kerala/Muzaffarpur BOT collection per day stood at Rs 1.9/2.7mn vs. Rs 1.8/2.4mn QoQ. KNR for its total Rs 2bn investment in 4HAM projects expects to receive Rs 3.6bn from Cube Highways. We maintain BUY. Key risks (1) Slowdown in government ordering (2) Higher crude and cement prices (3) Increase in interest rates and (4) Tightening liquidity in the financial sector. We maintain BUY on KNR with an increased SOTP-based TP of Rs 375/sh (valuing core EPC business 18x FY21EPS at Rs 315/sh, Subsidiaries Rs 60/sh) vs. Rs 363/sh earlier. KNR delivered Revenue/EBIDTA/APAT beat of 11/(2)/5%.