31 January 2020 Despite the weakness at the top client, revenue growth and margins were largely in line with our estimates. The positive outlook on all key verticals and the healthy deal pipeline within IBM are likely to translate into decent revenue growth (8.6% CAGR, USD) over FY20-22. Also, SG&A; optimization will likely leave ~120bp headroom for margin expansion over FY20-22. Our EPS estimates over FY20-22 remain largely unchanged. Despite the sharp re-rating (40% over last year), reasonable multiples offer margin of safety, in our view. Revenue grew 7% YoY to USD129m, EBIT declined 38% YoY to INR806m and PAT was down 4% YoY to INR879m largely in line with our estimates. Growth was led by Services (+6.1% QoQ) and Digital (+6.8% QoQ), partially offset by a decline in Alliance (2% QoQ) and Accelerite (~14% QoQ). While IP-led revenue declined by ~2.