KNR Q1FY17 performance was better than estimates on account of better execution in the recently won orders. Revenue of Rs 3.03bn (+77% YoY) and EBITDA of Rs 437mn (+78% YoY) came higher than consensus estimates of Rs 2.4bn/Rs 350mn. EBITDA margin stood at 14.4% (flat YoY), in-line with estimate. Reported PAT increased sharply by 101% YoY to Rs302 mn (much higher than estimate of Rs 160mn) primarily led by better operating profit and lower tax outgo (MAT credit entitlement). Going ahead, we maintain our estimates with 25% PAT CAGR over FY16-18E, driven by strong order backlog and pick up in execution. Maintain Buy with TP of Rs 740.