24 May 2018 4QFY18 revenue growth of 6.5% QoQ was above our estimate of +2.8%, primarily driven by strength in Product Engineering (+11% QoQ) and Products & Platforms (+49% QoQ). IT Services business remained sluggish, with SAP declining by 3% and IES remaining flat QoQ. 60bp QoQ to 11.4%, largely in-line. However, the quarter included expenses related to the demerger of the Engineering business and the merger with Birlasoft. Excluding these, EBITDA margin was at 12.7% (+190bp QoQ). PAT of INR838m was up 35% QoQ (est. KPIT guided for 8-10% revenue growth in FY19, despite the strong exit to FY18, implying a CQGR of 0.8-1.5%, which is much lower than the 4% achieved in FY18.