18 October 2018 MTCLs 2QFY19 constant currency (CC) revenue growth of 2.4 % QoQ was below our estimate of +5.7 % QoQ and significantly below +8.2 % QoQ CC in 1QFY19. Our estimate was based on managements guidance of slightly lower growth in 2Q compared to USD revenue growth in 1Q, but project completion in Retail in Europe and spill-over of replenishing deals into 3Q dragged the performance. PAT of INR2,063m grew 30 % QoQ, lower than our estimate of +42 % QoQ, primarily because of the revenue miss and lower forex gains. MTCL expects growth in 3QFY19 to be comparable to 2QFY19, which is not very different from our earlier expectation of +2.0 % QoQ CC. Given the uncertainty around Brexit, customers are seen engaging in short-term extensions to existing contracts rather than longer-term programs. For some quarters now, MTCL has not seen as much spending on Digital within its BFS portfolio relative to other verticals. Spending programs are of the nature of run-the-business (RTB).