HCLT's revenue growth was the highest among top-tier IT firms, albeit almost entirely led by IMS. However, this is not a new phenomenon, as historically its revenue growth has been skewed towards this business, which is the second-largest after TCS. Notably, 97% of HCLT's incremental revenue was contributed by IMS in 1QFY17. The Software Services segment remains growth-challenged, as cannibalisation of onpremise revenue by cloud pressurises Application Services, in our view. Steep 16% sequential decline in BPO revenue is another disappointment. On the vertical front, the key growth drivers i.e. Manufacturing, Retail & CPG, and Public Services accounting for 55% of HCLT's total revenue sequentially grew by 12.6%, 15.8% & 12.3%,...