KEC International?s (KEC) 1QFY17 was below our estimates, as flat volumes and lower commodity prices led to 7% YoY decline in revenues. EBITDA margins (8.6%, 110bps YoY) surprised positively led by SAE (~9.5% vs. ~5% for FY16). Consequently, EBITDA miss stood at 7% vs. our estimates. Ind AS PAT was impacted by higher depreciation (restatement of fixed assets). As a result, PAT was lower at Rs 309mn (vs. our expectation of Rs 453mn).