Persistent System (PSL) announced that its IP led revenues will decline by $8 million in Q4FY18E on account of seasonality and the volatile nature of the business. Consequently, we expect overall revenues to decline 5.8% QoQ to $115.4 million (mn) in Q4FY18E while its EBITDA margin may decline 370 bps sequentially to 13.6% given the sharp fall in high margin IP led revenues. Going ahead, PSL expect a strong pipeline of opportunities in FY19E and expects revenues growth to exceed Nasscom guidance. We now incorporate weakness in IP revenues resulting in a...