revenue declined 1% QoQ to INR36.4b (in-line) in 3QFY19, but consol. EBITDA increased 1% QoQ to INR15b a significant 10% beat. The EBITDA outperformance can be ascribed to the 7% increase in rental rates on account of exit penalties amounting INR553m, loading and the favorable impact of falling tenancies. Subsequently, rental margin expanded 30bp QoQ (290bp beat). Gross colocation addition improved to 2,477 (v/s 1,503 in 2Q), but exits meant that net colocation was flat. Energy EBITDA grew 13% QoQ (2.5% miss). Adjusted for the exceptional item in 2Q, PAT was up 4% QoQ to INR6.5b (16% beat). For 9MFY19, revenue grew 1% YoY, EBITDA declined 6% YoY, while PAT was flat YoY. (1) Charges for tenancy exits have been settled at INR20b, with INR11b cash settlement via recurring revenue of INR900m for the next 12 quarters. Three points from the 3QFY19 results are comes in as a major positive.