Maintain BUY with TP of Rs 940, at 17x FY20E-EPS. Persistent Systems (PSYS) posted strong rev growth (Alliance business-led comprising 32.1% of rev) and in-line operating performance. Revenue came at USD 123.6mn, 5.7/9.4% QoQ/YoY led by sharp growth in Alliance business (USD 11.3mn incremental QoQ with USD 6mn incremental from re-seller business). Digital (21.4% of rev) declined (impacted by delay in new projects), however sharp recovery expected ahead. EBITDA% came at 16.8%, +203bps QoQ supported by gross margin expansion of 95bps QoQ and G&A; leverage of 110bps QoQ. APAT came at Rs 0.87bn (Rs 0.88bn est) impacted by higher ETR.