PNC Infratech (PNC) delivered strong 1QFY17 adjusted net profit beat, ~14% ahead of our estimates, aided by lower interest expense. Other income included ~Rs 140mn on account of interest charged on Rs 850mn loss funding loan given by PNC to its Ghaziabad - Aligarh SPV (cumulative impact from 1QFY16). Going forward, the quantum of other income is expected to reduce accordingly.

While 1QFY17 order inflow was Rs 780mn, PNC has won new orders worth Rs 13.7bn in 2QFY17E (incl. L1 of Rs 1.2bn). With a strong state/NHAI roads pipeline, PNC is well placed to achieve our FY17E guidance of Rs 47.2bn. Maintain BUY. Roll forward EPS to Sep-18E, Increase TP to Rs 144/sh.