18 July 2019 revenue declined 2.6% YoY to USD157m (6% miss), EBIT was down 2.5% YoY to INR1.0b (margin of 9.2%, 200bp miss) and PAT increased 9.5% YoY to than our estimate of USD20m. Sequentially, revenue declined in all but the smallest vertical in Services segment the decline was particularly pronounced in Communications (-9% QoQ) and E&U; (-12% QoQ). CYL had guided for Services revenue growth in high-single-digits and DLM revenue growth of 15% in FY20. On the Services front, it now needs a CQGR of 3.3% to get even to flat revenue YoY. It expects EBIT to grow in double- digits, which too is a stretch now, despite the cost-rationalization efforts. While 1Q was expected to be a weak quarter, CYL misread the recovery in A&D; and Communications, its two largest verticals (57% of revenues) that were expected to offset the anticipated weakness in other segments.