We've factored in (1) Revenue growth of 10.9/12.7% for FY18/19E implying 3.3/2.8% CQGR, (2) EBITDA% at 15.9/17.3% and earnings growth at 13.3% CAGR over FY17-19E (lowered EPS est. by ~3%). Maintain BUY with a TP of Rs 700, 14x FY19E. Persistent Systems (PSYS) delivered in-line revenue, while operational performance was sub-par. Higher margin and the non-linear portion of the business lagged in 1Q (Digital and Accelerite growth at -1.3% QoQ and -10.4% QoQ), which reflected in margins. EBITDA% dropped by 200bps QoQ to 14.3% in 1Q (-250bps QoQ adjusting for 4Q one-time charge, visa cost in 1Q and doubtful debt provisioning).