Thanks to the traction in both HP and Direct channels, MPHL has seen a sharp turnaround in its performance in FY18. After a strong FY18, there remain several opportunities that are yet to be addressed in both these areas, which would ensure a sustained long-term out performance. While it is investing in these new areas to capitalize on the new opportunities, there are several tailwinds available in the form of pyramid rationalization, higher fixed price contracts and improved pricing in new technologies. These factors are reflected in the outlook for next year of at/above-industry growth in HP, above-industry growth in Direct, and 15-17% operating margin (100bp higher compared to the previous target band).