Q1FY17 Revenue/EBITDA of Rs 3.06bn/Rs 429 mn were lower than estimates. However, EBITDA margin at 14% (+160 bps YoY) was better than estimate. The strong revenue growth of 16% YoY was primarily led by stable execution by the company in its key projects. Net profit at Rs 215 mn (+14.5% YoY) was also lower than estimates due to lower operating profit. Going ahead, the strong order book (Rs 37.6bn, 3x FY16 sales) at present with more inflows expected going ahead, sustainability of margins and improvement in return ratios to augur well for the company. However, current valuation at 14.5x P/E on FY18 earnings looks fair and factors in most of the positives. We downgrade our rating on Ahluwalia to Hold (from Buy).