1QFY20 revenue remained flat YoY at INR21.0b (5% below our est. of INR22.2b). (It is important to note that 1QFY19 revenue included INR4.5b contribution from EVMs, which drove full-year FY19 revenues) Thus, excluding the EVM revenue contribution, core business revenue increased 27% YoY. 1QFY20 revenue was supported by execution of IACCS, radars, smart city business, upgrade of communication equipment, etc. EBITDA grew 12% YoY to INR3.5b (ahead of our est. of INR3.2b), while reported net profit increased 14% YoY to INR2.0b.
OutlookGiven the current order backlog position, execution timelines and capabilities of the company, we maintain a Buy rating on the stock with TP of INR130 (16x Mar'21E EPS, in line with its 10-year average P/E multiple of 16.8x).
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