8 October 2018 TELXs reported 18% revenue growth YoY which accounts to revenue of INR4b, lower than our expectation of 20% growth. Sequential growth for TELX at 5.4% was partially fueled by INR depreciation, adjusted for which, we estimate the growth would be marginal. Historically, 2Q has seen sharper growth for TELX given seasonality. EBITDA margin expanded by 190bp YoY to 26.5% in line with our estimates. Consequently, PAT growth of 44% YoY to INR822m was above expectations by 4% on account of higher-than-expected Other Income. Similar to the last quarter, revenue from SI (3% of revenue) declined by 12% QoQ, whereas that in Software Development & Services grew by 6% QoQ. Were the decline to not exist, revenue growth would have been higher by ~40bp. Given growth in the Engineering Services market, emergence of new areas like Medical Devices and Cloud, and strong traction across segments, we are currently expecting 20% revenue CAGR over FY18- 20.