25 January 2019 MPHL's 3QFY19 USD revenue grew 12% YoY (2.6% QoQ) to USD283m, in line with estimate. EBITDA grew 21% YoY to INR3,306m (estimate of 26% growth) and PAT grew 29% YoY to INR2,709m (estimate of 16% growth). EBITDA margin declined 60bp QoQ to 16.8%, below our estimate of 17.2%, primarily due to lower margins in BFS business and on sharp decline in Digital Risk revenues. Direct core channel (5.9% QoQ CC, 27.6% YoY CC) and DXC channel (6.4% QoQ CC and 28.3% YoY CC) continued their strong momentum; but it was dragged by Digital Risk with revenues of USD22m, significantly below the company's anticipated stable-state base of USD28- 30m. Cash generation from operating business remained healthy, with cash balance at USD262m, after the completion of Buyback and acquisition of Stelligent. The Blackstone portfolio is a major contributor to the direct core business for MPHL, and it should grow to 5% of business by end-FY19.