We maintain BUY with a TP to Rs 587, implying 13x Sep-19 earnings. Cyient delivered robust 2QFY18 numbers, on both revenue and margins fronts. Revenue at USD 150.1mn was up 6.5% QoQ (+5.0%CC; our est. USD 146mn). This was led by strong execution in the Design Led Manufacturing (DLM) biz (~11% of revenue, +33% QoQ), and revival in core IT services (+4.0% QoQ). Margin expansion of 182bps to 14.6% (our est. 13.3%) despite a salary hike impact was encouraging.