18 July 2018 NITECs revenue grew 3.3% QoQ CC in 1QFY19, exceeding our estimate of 1.1% growth, as GIS seasonality and ramp-down in Morris were more than offset by strength in other verticals. PAT fell 0.3% QoQ a 10% beat led by better- than-expected revenue growth and higher other income. Decline in GIS and Morris was reflected in de-growth of 5% in Others. NITEC expects both growth and traction, (ii) sustained deal flow (won USD151m TCV in 1QFY19 v/s USD110m a year ago), (iii) strengthening of leadership across verticals from Tier-I peers, (iv) traction in newer capabilities like cloud and data automation, (v) higher growth in Digital (53% YoY growth; now 27% of total revenue) and (vi) the worst in Morris now behind. We upgrade our revenue estimate by ~5% for FY19/20E given the beat and expected acceleration. We now expect USD revenue/INR earnings CAGR of 13/24% over FY18-20.