24 October 2019 HEXWs 3QCY19 CC revenue grew 12.3% QoQ (in line). GPM expanded 140bp QoQ to 33.8% (170bp beat), led by superior billing rates at Mobiquity. EBIT margin of 13.9% was in line with our estimate. PBT increased 4.5% YoY to INR2,223m, while PAT was up 9.2% QoQ to INR1,512m (in-line). Higher-than-expected depreciation during the quarter was offset by a lower ETR (18% v/s estimate of 20%). In last six months of FY20, revenue/EBIT/PAT grew by 19%/10%/3% YoY respectively. Mobiquity contributed USD21m in the quarter (of which incremental revenue was ~USD18m). Strong growth was partially offset by weakness at one of the top-3 clients (growth impact of -2%). Barring this account, revenue growth would have been stronger at 13.4% QoQ (CC).