We maintain BUY with a TP to Rs 815, implying 16x FY20 earnings. Cyient delivered weak performance in 1QFY19, both on the revenue and margin front. Revenue at USD 160.8mn was down 2.3% QoQ and 1.3% CC (lower than our est. of USD 164.8mn) led by seasonally weak DLM (11% of rev, -17.8% QoQ). Services (89% of rev, +1.1% QoQ CC) growth was below expectations however recovery in Aerospace and Defence (+2.4% QoQ) was encouraging. Margin was down 184bps QoQ to 12.2% (below our est. of 14.4%), led by margin contraction in Services (-200bps QoQ) and lower utilisation (-170bps QoQ).