* In CC terms, our revenue growth estimate for 1QFY18 is 2.2% QoQ on the back of gradual recovery in BFSI, offset by continued pressure in Retail. Cross-currency tailwinds of 80bp would result in USD revenue growth of 3%.
* At the end of 4QFY17, INFO guided for 6.5-8.5% YoY CC growth, implying a CQGR of 2.2-3%. FY17 guidance would be tested by 1Q revenue growth.
* We expect EBITDA margin to decline by 80bp QoQ to 26.4%, led by INR appreciation and visa expenses.
* With this, we expect full-year EBIT margin at 24%, at the midpoint of the revised profitability guidance range of 23-25%.
* Our PAT estimate is INR34.4b, -4.6% QoQ, led by lower profitability and higher ETR.
* The stock trades at 14.6x FY18E and 13.5x FY19E earnings. Buy.
Key issues to watch for
* TCV of deal wins during the quarter.
* Commentary around contribution of newly-launched services, and revenue scale and growth from products and solutions.
* Commentary around macro, verticals, margins and pricing.
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