Simplex Q1FY17 operational performance was better than expectations. Though, revenues of Rs 14.07bn (down by 7% YoY) was lower than estimate of Rs 15.2bn, EBITDA of Rs 1.64bn (-3% YoY) was better than estimate of Rs 1.56bn as the margin came higher at 11.7% (+45 bps YoY) vs. estimate of 10.3%. PAT declined 32% YoY to Rs 172mn primarily led by decline in EBITDA and other income. Going ahead, we expect muted revenue growth during FY17-18E due to working capital stress. However, decline in interest cost (led by reduction in debt) to drive 55% PAT CAGR during FY16-18E. Valuation looks fair post recent stock run up. Maintain Hold.