17 January 2019 CYLs 3QFY19 USD revenue decline of 2.1% QoQ was largely in line with our estimate. In Services, revenue declined 0.2% QoQ CC, in line with our flattish growth expectation. EBITDA margin expanded 100bp QoQ to 15.7% (90bp beat) as a result of higher operational efficiency and lower SG&A; costs (20.3% v/s our estimate of 21.2%). PAT declined 27% QoQ to INR921m, led by higher-than-expected forex losses. revenue was anticipated on account of seasonality, the 3.3% decline in Communication was a surprise. YoY growth is now down to 6.5% (the segment grew 24% last year), led by a large contract getting pushed to 4Q. back of a tepid 3Q with flattish Services revenues, CYL moderated its Services revenue growth guidance to 8.5-9.