Despite a higher variable payout (100bp impact), robust EBIT margin expansion (+150bp QoQ) was a key positive. Additionally, sub- optimal EBIT margin levels and headroom for margin expansion, led by back- ended productivity benefits, should translate into strong outperformance on EPS growth (v/s the sector). The EBIT margin improved 220bp YoY / 150bp QoQ despite higher variable travel and visa costs (+230bp), [2] favorable currency (+70bp), [3] reduction in other discretionary costs (+110bp), [4] operational impact low utilization, onsite mix (-150bp), and [5] variable pay (-100bp). The companys absolute and relative performance (v/s TCS and Wipro) during the quarter is indicative of some of the investments made in the previous years Notwithstanding the higher variable payouts, the company delivered robust margin expansion. The EBIT margin improved 220bp YoY / 150bp QoQ despite higher variable pay visa costs (+230bp), [2] favorable currency (+70bp), [3] reduction in other discretionary costs (+110bp), [4] operational impact low utilization, onsite mix (-150bp), and [5] variable pay (-100bp).