NITEC's 3QFY18 revenue adjusted for forex gains grew 2.1% QoQ (est. of +0.7%), despite seasonal weakness and ramp-down of Morris. Except the customer-specific issue,which impacted the Manufacturing vertical, strength was seen in both BFSI(4% QoQ) and Transport (4.4% QoQ). Contribution from the Digital segment increased to 25% of overall business, having grown by 11% QoQ. GPM of 36.4% (+140bp QoQ), SGA of19.3% (+40bp) led to EBITDA margin of 17.1% (+100bp). Margin expansion was a function of growth in Digital and NITL. PAT stood at INR757m, higher than our estimate of INR677m, led by the operational beat and lower ETR,which was due to a one-time tax benefit