23 October 2018 Revenue increased 5.7% YoY to INR711m (2% below our estimate of INR726m) in 2QFY19. Lower-than-estimated revenues in the case of MCX are explained by either realization (mix of high- and low-volume orders) or by contribution of non-transaction revenues. EBITDA margin of 32.2% missed our estimate of 38%, led by [1] lower revenues and [2] higher Software expenses (INR145m v/s estimate of INR115m). PAT increased 23.3% YoY to INR359m (7.6% beat) owing to a lower tax rate (13% v/s 25%), which emanated from some excess provisions written back and deferred tax. MCX is expected to start monetizing Options in FY20, and there will be no transaction charges in 2HFY19 either. We expect volumes/revenue/earnings CAGR (FY18-20) of 19%/13%/16%. In our view, this merits caution not only from the perspective of potential loss of market share, but also in terms of any unexpected cut in pricing in the near future.