Maintain NEUTRAL with a TP of Rs 425 based on 12x FY19 EPS. Tech Mahindra delivered better-than-expected 1QFY18 numbers, both on the revenue and margin fronts. Revenue stood at USD 1,138mn (+0.6% QoQ, -0.6% CC), higher than our estimate of USD 1,125mn. Growth was driven by the Enterprise business (+2.7%, Organic -0.3% QoQ), led by CJS integration (Healthcare) and traction in BSFI and Manufacturing verticals. Organic revenue growth remained subdued (-1.0% QoQ and -2.2% CC). Telecom (45% of revenue, -1.8% QoQ) remains the point of pain. Within Telecom, Comviva (VAS) and LCC (Network Services) are facing headwinds, which will take one or two quarters to stabilise.