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High interest expense leads to PAT miss

* 3QFY25 revenue came largely in line at INR48.2b (+16% YoY), primarily led by robust execution in T&D/B&F segments (up 42%/26%). Water and Railways declined 42% and 18% YoY, respectively.

* EBITDA margin was flat YoY (down 10bp QoQ) at 8.4%, slightly below our estimate of 8.5%. EBITDA at INR4b grew 17% YoY/15% QoQ.

* PAT grew 9% YoY to INR1.6b, below our estimate of INR1.9b, due to higher-than-expected interest cost (+29% YoY), lower other income (- 31% YoY), and a higher effective tax rate (27.7% vs. 25.8% YoY).

* Order inflows at INR83.2b grew 41% YoY. The order book stood at INR614.3b (+19% YoY).

* NWC was flat YoY at 112 days (118 days in 2QFY25). Management aims to bring it below 100 days by FY25 end.

* Net debt came down to INR18.2b from INR27.9b in 2QFY25 and INR26b in 3QFY24.

* For 9MFY25, revenue/EBITDA/PAT grew 9%/10%/6% to INR126.8b/ INR10.6b/INR4.1b.

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