TELX's overall revenue grew 11.4% YoY to INR3,455m (our estimate: INR3,651m) in 3QFY18, led by 14% YoY growth in Software Development & Services business. However, System Integration business declined 40% YoY. EBITDA margin expanded 410bp YoY to 27.1% (our estimate: 24.4%) in 3QFY18, which can be largely attributed to product mix change. Additionally, employee expense declined 230bp to 53.2% of net sales in 3QFY18. EBITDA grew 31% YoY to INR935m (our estimate: INR891m). Other expenses declined 120bp YoY to 15.3% of net sales. Other income stood at INR68m, higher than our estimate of INR13m and INR24m in 3QFY17, leading to earnings beat. PAT grew 42.2% YoY to INR628m (our estimate: INR549m) in 3QFY18