Soft Performance; Healthy Recovery on the Cards KNR Constructions (KNRC) has reported a soft performance in 1QFY20, mainly led by delay in AD for its key HAM projects and general slowdown in execution due to elections. Revenue declined by 17% YoY and 35% QoQ to Rs4.6bn, while EBITDA stood at Rs900mn (-18% YoY and -38% QoQ) vs. our estimate of Rs1bn. EBITDA margin continued to remain healthy at 19.4% mainly supported by higher revenue contribution from near-completion projects having highmargin components and the impact of IndAS 116. However, soft revenue booking along with higher finance cost and higher tax resulted in steep 36% YoY decline in net profit to Rs477mn. Current order book at Rs46.3bn (2.3x of TTM revenue) compared to Rs40bn in FY19 provides...