KNR Constructions (KNRC) continued to report robust operating performance in 3QFY20 despite lower-than-expected revenue booking. While revenue grew by 24% YoY to Rs5.6bn vs. our estimate of Rs6bn, EBITDA witnessed a stellar 38% YoY growth to Rs1.24bn vs. our estimate of Rs1.09bn. Adjusted for Rs37mn claim received for arbitration claim under revenue, EBITDA margin stood higher at 21.6% vs. 20.1% in 3QFY19 and 19.7% in 2QFY20. A meaningful increase in depreciation (led by higher capex in irrigation) and interest expenditures (due to mobilisation advances) and lower other income resulted in muted PBT of Rs588mn (-1% YoY and -35% QoQ). Further, KNRC's adjusted PAT declined by 14% YoY to Rs445mn owing to higher tax expenses....