Infosys Limited (INFY) 25 Jul 222023 Q1 Earnings call transcript

Ladies and gentlemen, good day, and welcome to Infosys Limited Earnings Conference Call. [Operator Instructions] Please note that the conference is being recorded. I now hand the conference over to Mr. Sandeep Mahindroo. Thank you, and over to you, sir.

Inba. Thanks, welcome with call team Sandeep and 'XX discuss in Infosys results, financial and to everyone, to earnings QX Bangalore. Hello, the IR

Please with Salil call on except Roy; Nilanjan we'll the as today that A CFO for we We'll found the be the Salil the call note in commence a in us explanation on is on I'd and with call the risks www.sec.gov. must to subsequent future, on for of team. CEO, pass filings Joining open risks statement say, some the call remarks with full to by that be like SEC. to our this senior management these which Mr. It conjunction performance faces. outlook forward-looking which available up other and Mr. of Nilanjan statement can questions. the members the company Salil. the now of to and anything is that the Parekh; company is read our

Good morning and all the on constant you year to Thank time excellent sequential Sandeep. taking X.X% terms. and XX.X% an XX.X% to growth sorry, year-on-year evening with growth the had call. join for the to financial everyone start -- currency us. good We've Thanks, in

proposition, gain share value pipeline to a driving capabilities us. digital with market differentiated significant continued opportunities and We our Cobalt our cloud of for

customer U.S. and online the transformation embark retailer leveraged premier posture. to a For in security improve journey experience Cobalt a the Infosys cloud-driven example, on the enhance to

to we growth are The like Infosys that segments remain digital based and an the confidence double different security immense to with lays dimension digits, of spectrum and higher. in broad in the digital the their XX% the who's this continue Infosys Infosys them several network all have is a of amount accelerate place across market. at Cobalt sectors IT Cobalt. best-of-breed Another quarter their across help by of for service manufacturer example a the both Clients business driving their and reimagining growing European robust infrastructure trust into to are strong examples powered on growth There segments, and efficiency continues in agenda, our foundation grew lines seen of the transformation or business. in Growth with Each geographies. year. workplace

of grew at digital terms XX.X%, Europe U.S. In is environment a indicates demand clients. our are reflection industry-leading for how a the geography XX.X%. at relevant grew healthy and our of geography, This and capabilities

of quarter with Our the digital continues currency total were in to Within seeing our capability at XX% faster clients. significant our traction grew cloud and our the work terms. XX.X% with revenues digital, grow Cobalt in cloud constant

automation of We areas also in environment in of area overall Within Our pipeline. for AI. to through see pockets mortgages we and cost to We strong. keep have the remains pipeline to example, of watch of addition terms close the the focus our in on the financial a services. cloud pipeline, weakness, do the in the growth evolving areas macro changes

were margins operating Our at XX%.

for our update. margin We completed the on this compensation the majority details will overall review of more provide Nilanjan have also year.

of are XX% our we $X.XX XX Some a deals new signed deal large This results of work. with other highlights value net of comprises billion.

XX.X%. was mix at Our on-site

was As healthy at the of we for build utilization levels capacity XX.X%. future, our

strong $XXX at cash million. free flow was Our

attrition declined. X on QX increases attrition And points quarterly historically, quarterly Our sequentially basis. annualized a to X

impact basis, sequential X reflecting our initiatives attrition have in However, a point on the put various we by place. of declined

enhanced a recruitment talent the into over brand reflection market. various our We This markets. are attracting a leading of of penetration and from net headcount employees, solid XX,XXX capabilities, is deeper increase talent

capability be to continues cloud leading. market Cobalt Our

XX clients over and technology domain XXX We have each. Five assets have solutions. our of

We solutions, XX Infosys XX labs, have playgrounds industry-focused XX,XXX assets. and XXX experimentation living knowledge

which Our a marketing, to BASE XX% margin the strong XX%, this regulatory on Life clients' science in consulting service XX% of Infosys brings technology digital XX%. the for well to revenue year. and growth acquisition firm areas. approach to the industry. of to remain best clinical We Denmark-based increased opportunity us current demand Earlier in life our growth to With and to QX is and BASE XX% XX% to now needs. and expertise keep month, guidance serving Sciences, our we in a and our bring One at Infosys outlook our we pipeline, announced at full the guidance, Infosys medical, was

this cost to the me over Nilanjan be environment, the And for you. Thank increased we margin at with will update. hand his it of With guidance. let lower end that,

$XX drop and volume manufacturing, morning, with Sequentially, the a by robust year-on-year grew growth RPP a major year. revenue thank to led total on The increased was growth in another grown $XXX count the shore, currencies. to client quarter buckets along X% effort X XX.X% seasonality. clients. XX%-plus business double-digit to opportunities strong in of levels constant our to to The uptake had recorded We metrics by of $XXX our of LTM from next for to Thanks, and strong, by utilization call XX,XXX you large of reflects Europe up We with everyone, revenue to was annualized constant ahead. were previous segments over All the healthy clients XX inched Salil. growth to was start in addition year. with due benefits. joining clients XX, XX% despite Quarterly XX.X%. increased Good attrition communication QX declined another Monday employee X.X%, seeing and Digital [Indiscernible]. XX, morning. to strong and mining by compared had creating some early last growth increased million number of in be revenues growth, across deepen marginally Voluntary region cater clients addition strong in Onsite across ability in an the QX our and geos an by number the increase The fiscal particularly currency. X number to this which mix of by which a This and recording with XX.X%. X potential to resulted million Client attrition now million fresher XX.X%. has constitute you'll XX.X% 'XX growth. of

As increases we on salary April. given announced employees earlier, competitive majority have for of

are high X.X% levels subcon getting to create days, salary increases; hike stood of our Salary historical QX XXX for top a increases prevailing double-digit previous as salary as supply basis of on a in benefits, a across than July partially drop year-on-year by segment, benefit from reversal performance These increase basis. and in all higher utilization future; X. client margin other this points of drop due employees headwinds. X.X% partially higher to to margin tailwinds Given The in from by rupee we rupee capacity were FS grew were inflation, cross X.X% geos in increases with quarter. contractual levels. year our currency X.X% vary movement the due terms working RTP depreciation hikes. job by provision EPS due costs. based tightness at on of offset offset of and performance XX%, X.X% The offset by major for third-party to the versus employees headwinds is being in of X.X% components an effective sequential due below: QX the increases discounts;

was DSO XX%. in through Our and QX shareholders QX. balance days conversion of We This CPG, large day including to XX% performance. quarter more XX retail in cash of billion billion. declined dividends, of X XX communications million engagement. investments balance focus Europe $X.X the new. building services, XX deals center a in by and in in the in increase continues $X.XX increase X X.X% to X in versus on financial X transformation million, each of $XXX services, Free to sequentially which customer of Coming the were XX the each for be X and Yield continued and is quarter manufacturing and DSO, and We and QX. returning TCV ROW. have energy to a contact and led clients experience, had which cash flow $XXX financial X improving Consolidated end resources an unbilled and sheet strong comprises customer X to cash than In a Americas on were and has at net net verticals. each to to in services at virtual Region-wise, with aimed utility debt-free. large Hi-Tech, ROE branches of segmental stable at net deals in remained was XX% days profit. after signed

rates. interest digital emerging large-scale slowness takeouts on and to across business We various continues While regions, impact the clients. on to retail of lending industry business watchful the of order transformation, in rise segment, mortgage global we improving some In due of increased subsegments. resilience and pace pipeline across be strong seeing remain the the developments budgets cost remains of are

to Clients transformation segment takeout, cyber Oracle Our both that protecting consolidation, and Communications sub-verticals. have focused skill focus assets across emerging These from ERP across Manufacturing SAP macro as while with adoption. In In in IoT, enormous well of ranked in robust environment, supply Industry which we momentum, are seeing energy, vendor threats. quarter digitization ratings on segment comprise growth around asset opportunities competitive this monitoring geographies monetization across rapid has increases in the and of broad-based the utilities, cloud-led traction investing existing see sub-verticals. business sector premium track pipelines compensation seeing digital the employees trend. on pipeline. on public to the in supply-constrained to creating In business. simultaneously them, cost automation is as in and leader transformation are and cost areas on in continue and a cloud, engagement and industry partner HANA, X requires employee services. services as impact their takeout hire The we our their cloud and We proactive potential us geos. invest segments, accelerated industry experience growth X, situation with transformation, chain, energy, been a in agenda is resources Cloud, X.X, their across cloud clients talent of

we overheads. costs other travel and expect normalization like of Additionally,

mix retain of automation, XX% of We to and on-site will on measures, we to XX% bottom the pyramid, has guidance of operating Revenue the increasing can flattening expect to Whilst cost-optimization open range. call increasing reducing questions. With guidance pricing. our XX% been margin focus revised year we the for continue XX%, to we subcons, including for to be the the various at that, of to earlier. XX% from end rationalization XX%

first Our Citigroup. is Goyal from Instructions] Surendra line of question [Operator from the

questions of my side. couple a Just from

please and you environment clarification. you're contractual provision client clarify, potential talking Could Salil, the Firstly, largely a said hand, in strong to because I resuming by the that discounts. discounts offset same and at of a one price we are you or hikes are time, general? believe we also a same bit demand of the Curious, was on discounts. talking discounts

of X.X% combination was higher elements: comment provision increase the RPP. client X that benefit, Surendra, days, a by to It's the contractual X in discount. reversal partially it's not working offset the

It's started a So direct all same linkage of and provisions. we've in but net we And on keep less this the not for but it's we clients, discounts But of come as like -- pricing. that's impact with not clients of are generic these. a I these terms discount. said, our automatically client is coming, negotiating down contractual

question on just sure. demand trends profit growth. XXX worse -- strong year-over-year. talking is than about. Okay, historical and all another is down growth are the we despite Operating margins, Y-o-Y bps And the

that about is you basis which the think recouped we So much you forward be really just as of point here? decline, XXX go think if investment from can how

Yes.

-- So COVID. like of in of said the way were we some back having we we a end benefits knew

really Our never -- XX%, the were et we've utilizations were operated before, travel, very benefits which high. of cetera. We

coming more Now has more. we back. are seeing that That and been

ability demand, ahead, see as very that's we we to in hire. something our support demand which to terms that have I volume are So we we year. But last of this the were clear think in aware well certainly of

pay We competitively. have to

actually did actually we hikes XXXX. year in out this March, year, we've So already And X wage calendar rolled now in yes.

X substantial September done X.X also year within did we've years, a skill actually, last we And base. CRs. So

premium we this for to behind So we continuously to that. demand, investing that pay And know been have capture skills. we've

leading We X.X In some us an have subcons think industry, for cases, volumes. to behind I go from position.

We these things are time. But know a period of again, we at XX%. over close some are

can we of the well. We And table levers, because future lot have optimization don't short-term right? over X-year these, on the leave demand we a and want of over optimize And pressures. cost as year to a this

have will confident, today, are of we talked be course, So why of the about range. in progresses. to XX% have the we the we at quite year that if in as will and the end XX%, -- we And see bottom that's improvement sense, XX% we that

question is Securities. the Wedbush Katri from next Moshe Our from line of

especially on numbers, business. the Spectacular of revenue side the

to do From you up that think the to potential you follow-up to lot then a the kind I last at what your or to of be of We're about that. getting you the a biggest Just highlighted, you that. margins. that topic And here for mentioned? follow-up lever catch a range on have the after levers is of margin able kind pushback looking question of perspective, kind

Yes.

hire been it has XX,XXX that. are create and, and that has in we from the and to put And buffer our a can't right? put Moshe, adds we So net that able I So the over production, Mysore very if them vigilant well fact, higher quarter, get put contributing expect what think, which above you go fresher cost They see during And is right? volumes. training start to our we you utilization we so about to how able and are firstly, when fresher, them profile, in through X. is the train changed, So margin so into mandatory of to then the period day and that. them, time, then our

of improving. where can start think So we that's one part big we

you of costs, stabilization subcon automatically, see has the the As right. brought up hiring

As we seeing this a quarter. of percentage are every revenue, increase

this have of coming to should us. out as we together we terms mix remit continue is see track And for the this has offshore that. in of is this picked flattening movement, of you an our got benefits being overseas see largely we're That because out on-site impact happen entire adverse more -- takeout especially of costs up, having able in of and big come sort the we benefits, some is out. environment, aberration theme Now hire more becoming line. over inherent think future, but will recruitment we story The where uptick cost the Whilst travel should of across in and fresher, a as taking benefits optimization. cost the into a that seen to

thing we So Pricing we have been areas. we've can know multiple another is talking about.

pricing of terms impact et less of seen have discounts, We in cetera.

to in happen. terms clients of terms in are back when of We going COLA, our renewals

I in all Now much started again, at these are more have a longer-term impact conversations you least earnest across commentary across. the and But think hear similar right decision. segments, the can

these on, done the the So we've that's areas to focus think continue over I something we and years. are

be You've very cost-efficiency to in of forceful seen that terms exercises. continue our we

does basis sensitivity? the a as utilization follow-up, remind rates? sensitivity utilization Okay. to us And in versus for what's terms What i.e. just rates, XXX just margins of in it expansion points margins mean

Yes.

we see which on by So utilization. I levels it depends think

So it's quite complicated.

in pyramid pressures that You offshore then in in the and of have in different a on-site, the different impact utilization. utilization

bit to. off the of X% this We of the and XX a I it's points complicated a will to quarter, -- become basis think, utilization give what number you But just lost I So impact. you can't large changes. mix lead in margin. how give

Kumar question line of Paribas. is from next Our Rakesh from the BNP

question side. was margin continuation on My first the

this the could the but just to quarter, the you compared management fourth do the a of Infosys end So that, Or appears was the more pressure were use Isn't through planning indicated the early? what what we margin higher sharper to the industry, what supply be by across performance Nilanjan, quarter? what at for than is subcontracting had planned that the decline. higher driven it higher-than-expected that? behind and had think be side-driven than of reason not you and commentary demand that

Are about the you talking us about industry? particular in

Anything, whatever similar color been for Because on. the you give industry. has could the us trend and you very

don't across that -- is coming The said, a operate don't like doesn't similar pretty we the news, good vacuum. is the a so industry. are attrition and But we much attrition trends in we down. vacuum operate yes, think I industry in very

Our down quarter we we And were our figure On we're is attrition were basis, said, X% already X% flat. the previous in below LTM a Salil as and quarter, figures. down. actually sequential

the LTM, this So in And is course, of The effect. fresher sense, I more stabilization. catch-up think will and a more you reported coming terminated. of -- is start will that see getting in start

end which you Because seeping lateral right? hires of down. the day, come in The the that into way hires get So fresh it's bonuses. starts the if at or have less have They you structure, benefit have putting a have to pressure, attrition. cost

In down. should fact come that, that impact

the favor. program which we these said, you've very, will play, have, are And way which industries. think, across very will I in cost But of seen like and numbers sharp declines our these things much headwinds. offset in these I So a know, optimization pretty a go I

it. Got

the it we the... side was on second were expecting. So question higher what appears than My was pressure supply

I -- that the if our terms has that in of think about adds, tells very our you hiring have net fast and no gross terms we been and to of high, there's offer. course, question all in of action attrition see and

is it side. from overall issues demand that led the industry So

acquisition. question on Sure. BASE was My second

already than So structure life pretty $X billion strong sciences with have a scale. we more

and looking So what from to acquisition? this exactly get targeting we are help

strategic very market or focus on strategic And focus is also Scandinavian The quarter, very is a at a On very our of just This there a business Europe. Denmark weeks for -- is life high us which in BASE, end market. ago, for launched area. we a shared things. sciences strategy expanded is we start had market the the a are multiple new whole When us. few the

also capabilities see overall which that the That is feel starting to terms and terms. using where it That's transformation. So second strong us segment of digital we point. BASE a as And of segment are segment. leads technology we helps we up And that percentage clients underweight a the in the future that's are then that benefits a area transformation, in large scaling for us.

we existing that So enhance capability. deep want to with our

question line from next of Keith from is Bachman Our the BMO.

on get the think are I will on the wage to to model. of balance and what year, question how views tensions margin the is that first inflation impact your My wanted your you

a, think moved think, X, over fact, attrition margin do So call a quarters in unfold And then And inflation will wage attrition in equation? you you the Do you next, gross mentioned how that the lower? be continues has, be to and a X lower. follow-up. have it, I force

Yes.

think like we that last market. I clear were competitive we very started be year, to in have the we So

gone actually we other January Xst up We've laterals hidden So sector. they we of did on year. from you there's see July. mix, effect think this we the cost in X hike Then think the ahead same we in waited course, 'XX. competitive. terms see did these talent margin we more first But senior year. hike come the X, was quarter a Xst we of also majority our quite September -- happen the very a and at our March higher broad-based. not which will than in of of that, get in in done a There's carry-on And to laterals of which way, little because I a of first, not hiring 'XX. but July, the and we next our of lot are impact have hike in of -- middle if wage April -- had of a Then follow in the in of And

think single high of inflation hike up inflation in overall -- overseas average we've across. environment, a like something digits. high competitive we any more very of is I in very of So I is compensation weighted terms done compensation, before. case, this in wage this hikes, because it's in a competitive environment in not across, have And -- geos, also wage in -- overall kind India, But think given going way, which

But past. terms us of higher something of the in So over of a are do good think I these the in of like seen will stand sort said, what like we this efficient very stead attrition. time benefits in we going is X period in. much we've than which quarters And

We cover software Okay, of a okay. number companies.

started demand for made of wage demand And with doesn't like the have side. the seeing side, will just doesn't to but very software seeing negative it know on weakness you're business fact, on new elongation particularly kind it sound in yes situation? clarify, sound of iteration or weaken, say the specific you It any sales -- like industry seeing the But no. you And same macro companies help elongation they're pockets that's on if the if could are And one comment, I And cycles. front? on you your does that, me. any

thanks for A that. couple Salil. points This is you raised. of that So

the in or pipeline that the recognize of I areas. said think what He course, ago. X what what the is couple we share within going financial on services, we that, on than large of deals demand, global Having we had within mentioned retail. see our talked have also larger Nilanjan X And is we mortgages. our for today mentioned a environment. months we,

impact. where So we pockets see we see some

decision bit it's deal where a the we little the making. discussions, slowing in On see overall

with strong which customers. on in is an X transformation digital of And orientated types remains to their or which impact they pipeline deals what driving Or us also they on the want want there. for are However, got is cost. their to deals. chain, We've cloud, clients, how the supply do for today. growth to are second One make

really can strong our of We in play the cost artificial landscape a very our the work, and through work, tech where clients. on intelligence through base impact cost our efficiency have we automation

given this our today, as will areas start changes. the is come play already into within we are So are positioning, good seeing situation. But environment. those are that how feel we we this environment when which to active demand and those very the And

the the was, that happens. on have that We how and view or a evolves macro on have the of because if where would will was? a don't question macro Now a change clear go it's wage function other your what

starting to how to But off the will us time macro clear. compensation. is Of the It we a come for that are seeing clearly have a positive with not bit, line evolves. little on respect course, and impact depends attrition

is next Nitin of the Investec. line from Padmanabhan from question Our

I had X questions.

one offset margin provisions, quarter. Whatever Is quarter, is one-offs So have from of a the in perspective. as of previous included which first. and the contract understanding? in this been That's we Visa these sort both saw them that a fair

The mid-level. of is is second below percentage associate XXX,XXX if question only cost, is should the in this is terms -- have of in it the general XXX,XXX level the and a quarter? we be employee the comp people so, understanding obviously, mid-level, higher. And for salary it as the increases, then And some associates general that team

questions. very thought headwinds helpful. your are will with the help Those be be shouldn't that quarter? X So process, margin process, thought higher If could just that next you

XX As I offset in by bps of of partially margin said with contracts -- provision and work clients' walk, from the RPP, combination discounts. in a reversals, had we benefit a is which

seen a what said that in So been we've no, there. benefit way, a eroded. has you There's

provisions got of have client clearly. benefit the contraction We

outlook which on question? said, The And we've It most our employees, largely on it for more the they against will than I think, Like On across. what And the in less offset impact And what much senior the is roll travel, mid-level. one level be far we right? is to that I a at other X.X%, each other wages. Visa done July. to which were want broad-based other? of more out is we've is up done,

Sure.

happened That's... and itself. So associates only It's associated? not mid-level quarter both this

No, no. no,

and Associate mid-level, correct.

the from line Bergin question next Cowen. Bryan is from Our of

to dig the in weakness. just wanted on around of pockets I commentary

mortgages. So heard mention you I

that Is You sense, actually less? of X%? mentioned, your some I weakness. is business you areas could pockets guess, decision-making? quantify what Can of the us maybe seeing it or quantify XX%? mix subcomponent slowing help Anything it just Is to frame seeing a just Is of are retail. give it

thanks across This or areas quantify given don't impacted. your is, seeing the other our is business. financial whole are guidance. we've So of with We're of all question. that, And for of I part We not look typically at revenue Salil. way is pipeline, mortgages now This what services, our the it our pockets. which increased would sort our

how it. the our good majority to So really would It's give That's without demand. still I seeing context of quantifying. a pockets business is

just And Okay. a follow-up on margin. then

sequential gave give what changes the you in margin us the You Can changes. different operating year-on-year in categories?

some which we largely, the also And I some biggest got well, cost was there it which then And comps-related utilization. was lower rupee offset said was ones. That points. optimization this offset XXX benefit, of by So currency hike basis probably as know of the in about earlier, was we of a benefits, benefits but half cost was that. because [net] on

XXX about things, one comp, was bps. was biggest broad which the but are these the So

is Guntupalli Asset Management. Kotak line of Sudheer from next the from Our question Mahindra

very is seemed risk the to level. very paradox job down this Nilanjan, a What that question now and chase view the very margin be seem for at into but later at but Ideally, just of one strong high U.S. and on we I should the have to to have that optimization margins. little doesn't some growth line be now, growth, the date. be growth Because And margin the operating translated to what growth of bottom a on seem trickling mere we'll tight leverage, nominal U.K. a level focus benefit hypothesis? in headline market, is happening. reflection happening to

some and U.K. wage market job may is in in may it elements on-site India, negative translating at sticky may this headcount growth and later, market as much not rates some or off and or job recalibrate. be sooner But of as and a free So nominal leverage U.S. There moderates. markets demand back cool supply operating be into level as auto costs both may

risk margins sticky. some be the supply that ahead? cyclical tend be of than even will to the the while lower is going costs what pre-COVID more remain So structurally tends to demand more levels Because

When increases cost right? wage things. So on right? a profile. will a doing the base, renewals, be is base up discussion. it the to on if of all my a their X, automatically, wage come way, many you these it are can will the we couple existing hike have industry, client have we I give a of One for time they and in That's passed So build into will day on when new build right, that deals,

a So point of for XX.X%, to more anybody, Today, of a think period because is flow X.X% of for There's no our more making. terms at, can this be sitting past we're automatically demand So into levels with happen at replace back. But recruiting account been as time. that's in I'm something doing generic X%, the There's our picks which well. thing pressure these put subcon, overall the we've what environment, free one reason headcount, We own wage subcon. these will will no we be right? right? at projects. we've over what, well very lunch that's in right, us operated of market, know up. we And But

works. are well known We us. So [Indiscernible] know know how I think We for these work. levers how utilization

go-forward the of structure. from So we model confident in taking quite cost out are

if I question, Just one may. more

because is now, just slower, So is between some pipeline related the decision-making getting when two? larger if we is curious bigger and correlation the the any getting pipeline bigger say of the there is

different you where what in relate cost client and for a The referenced, It's an more for to the programs, more for industries we we discussions are traction see pipeline, today increase. line, with and the time which there digital transformation is what appetite causing as pipeline. of Sudheer, go we start to the delay this is see. which seeing is is by programs, large of function is and is cloud that that That's Salil. It we not efficiency. which programs

Now we will but we see today. how that the that's outlook evolves, have

next of line Ankur Our is Rudra question from from the JPMorgan.

on the of round XXX both and look conservatism us between hike given also another guide, is first revenue could ask costs. of and have years margins, second potential which question Part the the rounds macro we I margin or ratio and the basis the revenue realism this year. similarly, from that so points, what the rate maybe First margins keeping headwinds level infused on time? up of the this hikes, of the second ahead much the half a the wage guide into And in still facility the and and by at impact as as travel far and if wage of previous similar impact is

is for Salil. the This question. Thanks

start me few then and off add. to have will points Let Nilanjan a

today. we we for as the saw see growth, as shared is things guidance had the take at past, year are the is how QX, the revenue we On in X.X%. in strong look growth, we extremely financial What approach we we've

clarity be. of that then take also We comfortable ahead sure a and that at the year. set could and year looking where to When typically have going like we end outlook we also the for HX where the works referenced, on had see have rest the to the time the and for the increase is approach we we strong. conservative the share realistic, estimates revenue we underlying then how volume that putting in that Whether financial of that, looking we growth what make felt to then Nilanjan guidance. period some of was think look is very which we Based or some it's year the revenue growth versus on views for of HX

that what to all sure off we on the work margin, Nilanjan levers I'll will the then margin, On a we've Overall, get place. about talk done. in the of bit start we've wage component the made little and and

place. the So the our done compensation of efficiency in increase we've QX. in driving majority got cost the approach one levers ones bulk, of mentioned, the is already that bigger Nilanjan Several vast to

is will there's There it's where a not where the we wage driving where small yes, are subcontracting and component work, really huge with which that a from up. but component, steadily impact there then we come areas works, other on focus focus There how us. help areas on are clients. we're areas can discussions can significant which we will So And see clients, increases doing the are COLA. areas

this there the that can that focused us those on of be margin are think set a will we So financial levers discussion year. help through

we a theme the sure that very And to that's remain much business. that is high-margin underlying working approach Our with. are we make

communicated world, around see we to way want to where the in we clear the the we the else add? market. saw are, was we inflation given that sure Given that if it Anything make you

No, no, that's good.

Okay.

there may, the should can the realistically? -- Just say Nilanjan, can to if for to if margins margins not pro bottom that, be XX% are provision so get this time? to related of forward the margins. Asked on I a the be quick that the margin follow-up, any you QX back was one-offs that in get forma would can way, another reversal going year we in And you what XX% happen?

Yes.

walk the So the think call. of the at we've margin mentioned beginning I

So see are quarter-on-quarter. so of this says bottom going the improves we In had forward, improvement end that we the so at riding absolutely. will it we mathematically and XX 'XX, 'XX,

Ravi question from Menon line next the from Our is Macquarie. of

good a set on of numbers. Congratulations

not North your call I you wanted on time. a seeing, that And revenue. of even quite America, for bit added BFSI, out though thoughts some Just progress a broad in sustained how you still such based headwinds long think, in

if color we've a freshers us how of pyramid, last secondly, So there. year. parameters give you the large some And impact seen could sustained about obviously the

that production has the of some that that quarter. given like happened. helped would look headwinds into as have have hoped had doesn't and this of I looks offset well, it it much margin So utilization us current through like, But the come

if So give color. some you could

Ravi, of catch is the Salil. part first the question. I didn't this

maybe say demand, you can think the but it I just first was part. about

where North some seeing addition come verticals there It was broad-based along are you're America, across similar the around if pipeline in verticals the -- any how demand, also in? see lines? to starting seen you softness specific Or and we've revenue broad

Yes.

as see So some the in softness business. referenced, overall we are we -- we softness, -- pockets within our of

that, there where So that we visible. of A see weakness. is retail, you very that is shared, and want couple financial that something areas are we to but examples be services clear

a also that, pipeline it and see is say we view we have we once However, in overall our stronger. The pipeline.

the areas of the well. about we growth pipeline. some good second think. cost and one So And traction a within there think was opportunities are where I pyramid, I the as it's the And our mix see

Yes.

freshers a previous of because, pipeline of many and year, also in them in year, the there last into really the something hired of have training terms lot had We've gone hiring. as was pipeline Yes. we

in trainees if excluding So a between fact, the trainee basis well. you on see numbers our including and year-on-year X% a utilization, as there's gap

can't into like projects, freshers go in, it's put well. to the advance, and all build them We you said, them why into projects. bench in them important the In enter And into as them projects continue pipeline to trainings production then deploy through overnight. that's move I make and or

in. If So that ahead, and benefit of just are have fast coming slowly terms right? come invest sub-optimizing to be time, how we it'd But in just important can in seeing that deploy. will you in, it's you probably

have that's these will So investments freshers but we in, to take for time because why made it we important investment these that go ahead. to know it's make

And quarter's of revenue. last this contractual one follow-up

something is there you did Or recognize this quarter? still pending? So all of that

recognized all this was it Yes, quarter.

the from line is from question of next Kapoor Our Pankaj CLSA.

be plus on million color TCV, may we not deal the gave. and representative. some overall since $XX give reported you can the order That book covers really what only Salil,

has the be So That qualitative overall grown? scale book comment any or quantitative and will order the how on helpful.

Thanks the Pankaj. for question,

we we the increase the you As put in deal be guidance then main the HX I at within the would on comes share view number. Having That that the the what very mix we an view that sort HX, of sense, looking in sort may execution, strong deals see said of win look that all in context don't which XX% at coming is QX broadly overall provided. we inputs for, in our large of company. it. then factors and We looked then that we publish a we know, growth. from growth the And essentially have That overall X.X%, a the win. the how you quarters in, how that, is of

deals, a large we more number which than in deals. $XX Typically, large this in a report is we little larger volatile past. the only because million bit are the deals On shared which our is this

And really it. the that's so we look way at

potentially in the the the very is the question a despite this X, has out it how a still profitability margins deal, last second Or probably understand understand My manufacturing a this What which be have that have where very up could down I'm And shape is further? this profitability quarters? us vertical, X now? of go I on in vertical ramping revenue strong trying bottomed enough. sense next give curve large halved there. fact, they because growth. coming been think Fair down. quarters, Can the X you put the you in is would over that to

Yes.

think specifically without think any commenting, particular on I So I deal.

by know we quite is I in -- has think, about we've firstly, seen approach talked to revenue of large structure, start all as this which This these there of deals. segment. we clients the the deal deploy But the been And which levers whereas growth, half can large period pay a the has led spectacular been cost we over right, you a on to from not optimization -- time, savings. on continue large that a years, that we very the X a lot And time X when we period of deals. but the I savings, deal if a clients to over an actually margins strategy of we've are increase go day clear last started, see in of years, day over because seen X, in fact, cost large that. have back X like of would sort on lot

have projects can require optimize to services, these are which Many going into our there's progress. in the out we're of that know taking on-site offshore. how dilutive. providing. inject So our dramatic the We We correlation to no at cost deals we And we all Because system. terms on works. factored bid that through historical large working We entire saying automation. look of pyramid are we continue how

things are these the over deploy. we can that's lifetime large know So something which of these we and deals,

we something, into what without manufacturing, that's So specifically do getting well.

Stanley. is Our Rateria the from Gaurav line next of question from Morgan

weakness, a in there vertical, verticals is seeing and Europe, X there But is broad-based in versus we other any the segments. is Hi-Tech European whereas across in has very, is firstly, very look retail of specifically that So grown side, communication decision-making And is signs. reason the energy U.S. at U.S. a difference bit well. when growth fair client I'm the behavior asking

you Europe, market? see especially trying in decision-making client-specific understand, So of compared to just changed there the kind has where to any U.S. pockets, are behavior

seeing know well, we We question. geography based. see mainly is client U.S., are that as more for you Europe Thanks not you more and are Australia. And our globally describing. base, that, is industry which based, as which Today, is some

geography related. not much is which So color, more so

Okay.

margins. on Second question

there the and element Your at very is the margin explained down, of to of has led which which led expectation factors, outlook lower that has cost-related side pricing has be tapered you outlook to cost should increase well it an the But supply been margin end, also fair you this. the that exit better is have end with the place, And levers to take of you all say lower the now to lower the in margin the end? than that guidance?

Yes.

happened we see of subcon, inflation. we look sort on there's equation And of forecast, wage I so happened when a do in keeps do So margin and as outlook, previous our what what factors on that think, quarter, changing, the we dynamic, combination at. it's what's

to evolve. change and continues mix that So

we rest Sometimes, we should a some in saying back the of on accelerating when but harder sense to trajectory of for give year. margin going some have -- good think programs, pages and -- at that end the whole and I the of are today of 'XX push the 'XX, terms bottom to at you we the

of question line next Our India. from Rathod Nippon is Ritesh from the

Just on on lower the this you to guidance a quarter, margin side. within your margin, have

coming quarters. despite So depreciation the this down despite attrition X rupee benefit, in is last

you your So down that in end? with the it lower surprised bring expectations internally to what has have

Yes.

I just for the could much moving, like dynamic is this wage hike a forecast how of in attrition, is and what think I completely impact mentioned, come be very So new I hires. will the

play does how it's So pricing dynamic out. very

cost 'XX, a but today are from this it. end all cost of remain where situation, course, do the 'XX we that various committed to is we of at fluid the within but our in factoring we see. said very bottom sense, 'XX that the impacts So to And are we optimization, we at of what

potential wage of cetera. could terms the rupee, inflation, be In benefits there et of

all this forecast. of it's into their So a combination

element? what the be in be And through? start coming Or expected of not a Any surprise you it one been benefit would wage? compared to year? the have pricing what the Would would highlight bigger the it

It's a various surprised. combination things. And won't say of I

think I else. a than fluid I can it's situation said, important remain more we and anything like rather agile, that's

the weakness, they have the retail, -- the or coming is on are pockets the Are out taking existing sense exact And are deals you not to ramped getting converted? pointed new been What's of which mortgage, can some are won, over decision-making color? -- Or which there? not clients give deals weakness getting the up?

described, So of slowing. the the areas where there, pockets we within we that see a

For the market. the example, down and if gone macro client volume the has you look meaning at in market, U.S. there the at level, the Europe in situation, volume the mortgage

slowing reduced. nonetheless, proportionally overall allows today I and the to there work that good our a is point, in earlier, So but remains the increase pipeline in the position, But some see we guidance. decision-making, us shared which

dots conversion X is the deal quarters minimum you your that back, still previous dropping how versus. are it pipeline deal quarters, And even all-time the The those your quarters LTM what do you but if in LTM-basis wins wins. value ratios X high? of one you than large down you're last couple won X base quarters. Are of sharply, your was What adjust On down, see maybe a high And which if historical? down are basis, trailing I deal deals -- X by deal XX%. on wins because connect deal your the

it, than change larger the in the value. where We of typically deals, in some referenced we see what are do any because volatility deals large on see other the which million pipeline shared, the pipeline. we always the are we don't ones $XX we on in -- larger larger And a seen we've parameters some -- being There, areas it in but which share than these we number, this slowing are was.

Taneja JM the of from Our next Manik is question from line Financial.

to segmental -- manufacturing over in overall Sorry given margins how just that wanted again. in the the for And thinking does the harping last of in quarters. drop be X should vertical the we've sharp the on segmental about seen the margin I feel improvement margin terms question outlook. we once understand that the or how

tenure -- we else similar specifics, their like cases, margins the plan -- from have to as to I start look of we portfolio into quarter-on-quarter, because has because question. large we I profitability. they with -- coming growth may any going a cost asked deals And have manufacturing. to Yes. of without clients said, terms what deals, optimize we off very a can some for at we in us like And of structure. somebody Like these large need out seen that do ask X clients bring know come Because in upfront, do savings day they lower back but than started in

been started we've So that's over that we've something since improvement which right? what margin is the doing strategy, we definitely large period. And deal seen

I of confident the of we are So quite future businesses. think profile these

line from of HDFC Apurva is question Prasad next from Securities. Our the

this Salil, on is mega deals.

see is comments it's deals know changes pipeline on While be the any last secondly, Do a it'd get your been the good and to pricing, be that? while industry ability frequency to how low, to for versus mega to on from tends perspective. price you Infosys, increase And quarter? a

gives side we of share we The think a if publish. context. the we you what don't our is, color that I our have deals deals, in mega pipeline, -- specific On again, from terms anything mega in

we've we've values the examples we the translated that sense where have are we increases high-value We we working are and earlier are demonstrate a make as with a not high work XX see And these that's seen On for as to salary go seen digital that has things takes where which environment from we COLA into whole the where impact My more sharing price part sure margin portfolio pricing, pricing that is like Typically, longer QX. what, have was deal have this related of Western increases, of there. of we we've our what we've that had increase benefits. examples inflation to said, Nilanjan clients. happens compensation for put in ahead coming now We've in the had them support this driving to worked time. for place and years that at currently benefit to take our markets, And we for is holding -- seen the in -- business. over to time. Nilanjan our across periodic the clients our

question. gentlemen, was last the the and hand that comments. the I now management conference Ladies closing over to for

summarize this you, with a So is just Salil. again few thank everyone. This want joining points. for call. Thanks for to I

First, the X.X% market highlighted tremendous We resonating capability year-on-year. and driven strength industry-leading quarterly, see set growth increased we've share our Cobalt our cloud in clients. gain of guidance digital cost automation. is are in cloud all of by the we and our With weakness, around are aware in growth environment the growth of for year. clearly with We both had primarily see in QX, of XX% that, we pipeline, pockets the opportunities We the opportunities and full digital there that us.

We We some we down basis. are put coming initiatives starting seeing attrition create a of to the quarterly impact. now on in place many see

environment, transition margin, the on will We college shared. adjustments to of Nilanjan have and subcontractor Large have as programs others COLA, compensation because that a several production side. levers then pricing, usage pyramid several the state, cost we for driving to the hires costs increases in steady

work well and that of something profile clients on and approach to is growth all of feel opportunities, Given have high-margin with are the company. margin cost their that, the we positioned we really a that sustains

up are once joining thank and the this we with optimism. So year And and looking forward strength to you. for you quarter. next Thank catch us all again, in

Thank on members this Ladies you disconnect behalf you, that of of and Infosys, your the and Thank for management. now conference call. concludes lines. may you gentlemen, joining us,