NCC Q1FY17 operational performance was in-line with our expectations. Revenue increased 11% YoY to Rs 18.9bn, led by pick up in execution. EBITDA increased moderately by 5% YoY to Rs 1.65bn as the margin declined 50 bps YoY to 8.7%. Other income declined sharply by 45% YoY (in-line with estimate) due to decline in other income from monetized subsidiaries. Interest cost declined 26% YoY on account of repayment of expensive debt. Thus, adjusted PAT increased 27% YoY to Rs 523 mn. For FY16, Revenue is flattish YoY to Rs 83.2 bn while EBITDA/PAT increased 14% YoY/117% YoY (led by 103 bps increase in OPM and 11% YoY decline in interest cost).