HCLTs 1QFY17 revenue was in-line with estimates while margins surprised on higher automation and managed services revenue. We are enthused by the strong IMS rebound (10% QoQ organic - strongest in fourteen-quarters), platform leverage (DryICETM), margin resilience and discipline with increased off-shoring ahead (ER&D services). USD revenue at US$ 1,691mn was up 6.5% QoQ (4.0% organic), best in the last five quarters.