Aided by a strong 21.4% QoQ growth in the Digital business, Persistent Systems (Persistent) has delivered a healthy performance in 2QFY18. Its revenue grew by a healthy 4.5% QoQ to US$118.1mn exceeding our estimate by 1.6%. Excluding the acquisition of PARX, organic revenue grew by 2.9% QoQ. Digital business now accounts for >20% of Persistent's total revenue. Revenue from Alliances business declined by 2.3% QoQ owing to lower revenue (-3% QoQ) in the key IBM account. Further, revenue from Services business grew by 2.7% QoQ, while Accelerite (product business) recorded 2% QoQ growth in revenue. Service-wise, Enterprise remained the key growth driver with the revenue rising by an impressive 11.4% QoQ and 37.7%...