Infosys Limited (INFY) 13 Oct 222023 Q2 Earnings call transcript

Ladies and gentlemen, good day, and welcome to Infosys Limited Earnings Conference Call.

As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Mahindroo. Sandeep over and you, to you, sir. Thank

Hello, to discuss Inba. Sandeep the in everyone, results. and call earnings from Bangalore. team Relations Infosys' to Investor QX is welcome This Thanks, FY financial 'XX

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

Thanks, thank Sandeep, our for evening good to good call. you joining call, the afternoon, everyone joining morning good and and

this deeply capabilities relevant digital in pipeline to of highly $X.X strategic quarters the a These highest by and deal year strong constant at currency with all developed are in the Growth in performance momentum billion, was was at value QX we financial half sequential geographies compared growth differentiated the ‘XX growing financial year the growth elements XX.X%, new. half of and This strong industries that of Our was reflection QX was and a are deals seven clients’ cloud constant large ’XX. in net X% our clear accompanied Growth priorities. currency. XX.X% currency. constant to and have with in year-on-year in broad-based, is in XX% of first of double-digits of last large first

are in revenues XX.X% constant revenue grew overall XX.X% digital Our and in quarter terms. at the our of currency

some growth core growth to we This an see digital capability in is strong rates, towards of optimization seeing our to clients automation industry-leading programs. among cost acceleration reflects are While and our continues interest services this due quarter. trajectory

this deal pipeline with see our reduction on in programs. also cost We focus large strong

While we our QX, we Cobalt specific we our share delighted do not the capabilities. showing deliver. of larger amount demonstrate billion, cloud of cloud generally transformation our was especially than revenue that services, share value industry-leading client strength our Several the $X of in cloud tremendous revenue, to are examples

with a company European their closely digital telecommunications future. a growth is prepare engaging First, business us and to accelerate for

us us The capabilities. will because currency with emerging working operations. our and These This this. Second, examples aviation, working operating showcase with clients aircraft the confidence was fast-growing their engineering efficiencies, to more logistics their was expanding to quarter deliver our points. of XXX the operating deals provide optimization greater benefits. Strong large a of several into for color environment Nilanjan accompanied cloud to and company commitment secure value margin digital growth of margin our XX.X%. trust Giant and in in and and build and is on product programs. advance by cost in the would basis others expansion is this for quarter third, And resilience development digitally their

margins are XX.X%. operating HX Our

QX, the quarterly decreasing has for Our now basis. this quarters, past annualized attrition a including been three on

from macro growth reflected as in behavior spend, segments continued in While Financial large industry quarter, the by in slowness pipeline, we also especially overall healthy, to to of concerns. and clients be last see broad-based programs. we robust emerging telecom towards deal we Services of cautious industry reduced environment see discretionary signs the and segment demand high-tech Apart of the concerns the about retail mortgage segment and talked form in due

digital that. cost with positioned clients help agenda and our cost their services demonstrates to agenda. well digital Growth are We their and in our our

environment will positioned with both our help of macro of be these appropriately to business As components us evolves, our the clients.

a cost pipeline. large We pivot programs have to initiated our focused within deals

approximately Our clients share operating with agile or million. are buyback $X.XX Board or to crores capital environment. INRX,XXX allocation of INRX,XXX model policy, In announced our offerings billion this an deliver $XXX dividend and and macro a the incurring evolving for value in keeping of crores has

performance currency robust guidance, earlier to to emerging large we XX% our HX growth confidence that even concerns growth give XX% XX%, which we deal the talked revenue was in of at about XX% as Our are and constant change us to earlier. XX% signings seeing in QX to

grow ability clear to and anticipate service XX% We updates. take XX%. changed be the client a XX%, rates let depth of earlier end share market financial gain relationships. strong the of relevance, was that, to Nilanjan margin guidance other and request this Our offerings for to With operating year share XX% deep only to We this validation lower ‘XX is which the year we'll and range. our of me at for to breadth

sequentially Good Salil. evening, All business in year-on-year geos by in and grew constant year-on-year grew joining Thanks, this double-digits XX.X% and QX and everyone, call. for segments currency you thank currency. revenues constant in X% terms.

year-on-year count XX.X%, XX.X% Revenue Europe while XX.X%, by number Digital grew grew by Number constant year-on-year clients EURS manufacturing million America increases terms in $XX XX.X% and XX.X%. revenues and North constitute buckets. increased four by XX total revenue XX. ’XX. was by XX.X% to currency. XX%, of HX constant Client by by of Number by to currency XX.X% over XX, communication client increased by in strong XX.X%, revenues of HX services. growth by mix XX,XXX On-site in Specifically, Utilization, clients $XXX million reflecting effort ‘XX reflect across providing to remained Quarterly metrics in with trainees, XX.X%. counts which clients voluntary compared at increased in two year, XXX,XXX. clients during This to five our multiple Employee was further ability QX. million by the reduction top down XX.X% in two XX.X%. annualized in them by last approximately numbers, starting strong attrition retail X.X% came another reflecting -- $XXX reduced remained is from LTM mine XX.X%, excluding quarter to attrition of the to our quarter. flattish increased to in by to also

optimization; cross components of We margin expect quarters. depreciation, The Q-on-Q as points at approximately the of cost XX.X%, deal cetera., partially the reduce tailwind and offset in points on movements XX offset were stood basis by basis. XX a increases reduction basis of including Q-on-Q. from basis RPP compensation-related basis increase, EPS spend, in by headwinds an large follows. coming year-on-year of basis rupee terms from comprising XX subcon attrition operating rupee et lower impact. points by to QX XXX partially by points XX were optimization, The in further XX.X% these utilization, major QX of margin comprising from margin points currency; increase grew offset

to X.X% typically ROE billing four was $X.XX profit. of be sciences TCV deals by sequentially XX Our and signed the Free deals and and and in end India one to segmental were continues in QX XX large and of two Growth Services strong openings. in Americas, and the in the a each energy QX, cash generation Europe, account performance. balance in quarter services in continues billion, in year-on-year life is quarter. on DSO India segment in cash financial low client Financial debt-free. communication, with XX% quarter. reflecting expansion for three U.S. new. services, million, investments higher were cash to Consolidated new of the utility, the deal done large of due high-tech conversion Five in vertical. segments, two X% and $X.X flow Free in rest wins, $XXX net remain sheet the days in retail, two higher Region-wise, Coming by of We strong, backed flow to six XX% both net in with manufacturing, in QX. billion large increased XX, the resources and tax other by were account increased Yield cash in XX.X%. during the payouts to increased to world. to at balances one

an especially in are on for and cloud cloud cloud-related engagement, working some adoption fashion consumer In supply deals. IT cycles, platform and many we retail operations, in are, slowdown in focus There the to and modernization legacy digital chain our sector and cost FS of acceleration apparel retail, see seeing clients capabilities. new transformation with different in continue are of merchandisers. migration, other general We cloud pockets management initiatives, however, in-store

pressures Utility, cost transforming in deals. of cloud, posture, The consequently, healthy budgets, Energy, traditional and services healthy some products some & spend due growth in concerns. of productivity outsourcing on we robust like broad-based need we migration and there to Difficulty]. as to security impact deal around customers increasing and initiative a digital the with along transformation conversion, deal and, seeing segment, strong side smaller mix verticals spend well, to seen digital new we to Communications amongst take have We to cost other increase especially been deals. see by Resources but expect takeout clients broader with smart factory, steady momentum and tech We In order remain by driven reported increasing continues flow the pipeline continues Services steady are client closure. for segment on continued cautiousness vertical. initiatives. to Manufacturing to have smart delays In segment and transitioning hi-tech discretionary growth macroeconomic have [Technical by

committed ‘XX equity the of market free post per policy services through dividend at of SaaS, as a ratings price over versus shares digital in has to to of progressive remain shareholders. the capabilities This experience, and interim INRXX.XX line with capital approval We FY the For predictability is believe share FY automation cash design of The share. leader the dividends caption analytics. to crores of provide been have up returns INRXX in We period. Buyback buyback increase of our our ’XX. XX% continues maximizing shareholders in allocation maximum to for and following, per board and areas share a XX allocation an cloud, per for our open route INRXX.XX. INRX,XXX in data returning we of XX% in recommended QX, shareholder of policy public total ranked

Although there countered engaging cost will various continue need on-site pricing. automation, gradual increase be structure pressures clients reducing cost including by measures, increasing of is and mix hence pressures, to rationalization abatement subcon, pyramid, to on of flattening the exert optimization and cost the with to a we our talent of

XX%. HX The and lower year was for furlough seasonality of be changed growth HX to XX% days. to strong, to growth the expect working comprising guidance While we to due impacted revenue is

quarter margin last the in earnings call, mentioned the band. operating guidance we at of the FY be bottom As end ‘XX would

We guidance be are now we expect that, XX% narrowing for at and range. for the lower the XX% of to the to FY With range questions. open end call the can we ’XX, to

much. our first very [Operator J.P.Morgan. and begin ahead. Ladies the question-and-answer question you go Rudra of from we Instructions] take Thank Please Ankur will from session. will line gentlemen, We now the

Hi, thank and you evening. good

you in The the you period? you or impact mentioned the in is, sort the rate so? macroeconomic seen any or second guidance month of realistic elaborate have how your the this And question nature been on pipeline conservative in client Salil, first the also refill conversations what could of for the half? And has conditions, last that is context,

Thanks, Ankur. Salil. This is

think I We strong and saw deals what QX had in On guidance, was the growth QX. in QX. great we large very

We large is deals to quite pipeline for see continue overall strong.

fact, quarters. of in it larger last was the In couple than it's

Financial retail, some macro the in points Services, I earlier telecom. shared of hi-tech see that also aspects specifically We or mortgages

in which which keeping to all end with XX% mind, this with higher to clients, of over those. different business cost growth we've our a of there band. on programs on we also intensity and guidance, and moving on pipeline the is digital the the it XX% came to The We've our sectors grown and in at both are XX% at our XX%, has looking focus quarter, for different conversations XX% grown. programs seen good cost is that that clients seen from So has the view a services

the well are have, context for is on So feel We conversation somewhat macroenvironment. we given more depends these two that client in. that the prepared the we engines of evolving the

wage if in were that really great there extent Nilanjan in elaborate, in margins the Thanks. margin band any the interventions And taken change recovery and the within it's you. and Could to this? back special there one-offs to else you something drove the perhaps Thank back quarter. increases or this see is quarter, that of the just were if any

Yes, Ankur.

engine well. I tug to optimization along we think As explained, cost continues our

which on seen this looking the apparent, was on are think subcon, numbers I I also something very pyramid, Q-on-Q. you working in have would think

seen it's the XX% think know, and helping been have we to that for across continuous we focus I XX.X% we'll XX% at overall that year, of But So as range. the guidance are be said still the and benefit us. you we've end we and bottom at of

on conference sales discounts -- This So force this is go how team down. the the on cost, I come going continues on be clients that we continue still have just our we pricing approach that to go have in push etc. be the this. ways our continues definitely ahead. earlier to to with to and mentioned to clients to conversations to press Like continue

haul the but long have started So a this. like this discussions is pricing, around and least I at said

one impact there mind compensation of before, increases a margin you'd two is in any the next bit if Just your part that seemed more? the the over clarification, or elaborating light, change or change highlighted in trajectory that a you maybe don't three compensation quarters, bit breakup

is was more was impact. the folks. largely for the mid -- because this No, level QX nothing, the had there senior This for biggest of

unusual anything there's think don't I that. So, in

Okay, of appreciate and you luck. it. Thank best

you. Thank

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

for thanks quarter. question good Hey, my and a taking

would are cycle So seeing us you the are of and longer cancellations yet, beyond Salil closures, being to delayed XXXX we playbook. cautious also not obviously deferrals playing when slowdown this deal be or point project clients there kind sales or project we and

some more I on just get wanted color to So that?

spend cancellations Hi, didn't project understood quarter, properly, the slowness the some macro in things is that's we other couldn't hear I any project I or in mentioned. what the segments in This see was, Moshe. -- such Salil. the saw quarter. is within but discretionary question, this we there If I that are cancellations any

that. had we in For how saw example, some in and quarter parts for saw Services Financial retail in retail We of We telco. That's mortgages saw hi-tech, we within last it mentioned the quarter. this industry.

you take-outs? categorize cost is spend, discretionary would How predominantly the it

see for which we You is the spend, the transformation way more it. discretionary programs support know, a spend, that

say For the cost spend. let's targeted those programs, of fixed are different, more

Okay, of Do some sometime by budgets slippage okay. any any we'll and Do slippage i.e., you year? the there rather because than macro? think about budget cycle see all for a sort see being the have maybe sort of you views ready set next of we'll January,

to which on on So there are today, within what year is budget is, interest start cycle an large we cost The seeing us now sense shows of there are this What elements our -- from will see we and clients which a the also of cost. calendar some of is digital the quarter our pipeline, and own growing. programs, large in number both, it is we is related get services for deals a elements budget. core

we have that our previous not quarter. within the So something it's grasp from

few next see start to the months, that. we'll Within

Okay.

-- Can slight get of we a for terms costs detail. just percentage in of as the final the a number subcontractor quarter revenues? Just point

Just a second.

nice. all margin Speakers] XX.X right, [Multiple XX% Yes. XX.X. from is

Alright. Thank much. you very

did that, Yes, you Moshe? get

did. Yes, very much. you I Thank

Thank you.

is Our of next go Mehta Ambit from the Ashwin Capital. ahead. question from line Please

$XX a Hi. of manufacturing is the had up [$XX the million] terms a because bumped addition, a but margins, question we profitability in almost revenue happening million opportunity. in I segmental vertical had (ph) our Thanks what year. on by for incremental

it a margins to revenues, annual billion, an mentioned color we that helped there? exactly wanted on on is so or happening basis it's almost So is clarification get then plus, a have to on on XXX quarterly above bps basis? now you by $X seems our our And what so

Yes.

we that I on show same For improvements. we that, it think other course entire the lever margin how margin, question, has four, well. as sector of large of was or quarter deals of helped cost making we So [indiscernible] comfort many period have across updated, the which manufacturing had deals margins, a of it and when And yes, I give across the across worked manufacturing our time years plans and just have over -- a both to the sure should and we last the previous margins which -- on optimization largely, have think you the our deals all how in over five right? manufacturing,

The second question, I didn't really get.

So in a on I terms mentioned basis? revenues sense billion is plus, of a only of cloud $X that get the that you quarter

quarter this it’s billion-plus. It's one quarter, One quarter. for $X

Okay. and all best. Thanks, the

Thank you.

Our next from go the Please question is Jamie line Friedman ahead. from Susquehanna. of

the the sorry the come is the me let on recession, to guidance? macro, there that I'm the to robust in were that again in Salil, echo Hi, back congratulations but contemplated instance results.

So The looked year, and had QX for quarters, is, that in large what XX% way, QX question. what net we've kept is very deals, at -- we've which thanks it in we for with financial And guidance we've a new. in QX. number strong the our two is more the your today mind done

all where industry to that's some are, where guidance the macroenvironment, specifically mind, which guidance that revenue know for QX, kept more the the that also has in then seasonality built we and of typically our be some about this Infosys what example We in talked those we built and in segments I we will we I given of the slowing. we of today you this, in QX impact see we've QX. what with growth see mind for in And seasonality, Keeping furloughs update. our know in there all QX factored the and

or both. for transformation Is contain And how like of obviously transition? work think the of work -- there same we do well potential cost from a about to in implications difference for terms that from the the transformational transition dollar positioned margin profit dollar cost gross Okay. margin versus quantum very We're then containment.

which So it's a not much type is will work. cost scale outlook. general, are transformation There for from pointed the so where industry, there in geography. we'll at see programs, the of similar a Infosys, both first of peers. so many as huge -- different the the growth The we profile, very depending in profile level, engines, something the that on margin impact, are margin aggregate today these positive on we aggregate of differentiated In you differentiated the scenarios program, out, of margin example, aggregate is our for we a have see

that, consider any don't itself on today [previous] negative that we has So or impact (ph) positive margin.

we Nilanjan as out, cost that very the give and internal team will in continue us place was pointing However, of which the have to program a in either benefit and strong scenarios. have we put

Thank you the I'll much. queue. so in jump back

Thank you.

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

this Hi, Ajzenman for on Brian. Zach is

-- question First

interrupt. to mode we Sorry switch a and may you speak. request Sir please to handset to

that you We Thank not to hear are well. you. able

Hi, thanks.

is a First quarters that it's question revenue dynamics the we sense of is like on it us employee, trended have per forward? the now. lower you going looks full-time here, Can give the expectation multiple what for

Yes.

as is utilization think effecting this I directly well. So our

like the indicating our really. put anything and the this and is mentioned, not in a get is in many mathematical programs we employee number been I just to stable on but headcount revenue have so about around So pricing company both of per positive bench, in entire fact, in employee revenue so freshers -- Mysore training the per to pricing the has actually quarter, across

also been is can those odd outside XX% are our a I depreciated, than note, metric, also are is handed currency XX% come of in in you have this we dollars, well pure down. Okay, dollar as revenues automatically so because as a only have cross-currency just impact imagine there will and

sight are so quarter. addition seeing of the more going a there worse what makes prior And any hi-tech Understood, one this are get we on follow-up to the line is here? of in forward our now, broader expecting heard caution to more sense. on based specific heard other and telecom we've industries areas macro, quarter that in Are

[Brian] (ph), is this Salil here.

and which think that you is is that are of slowing. just mentioned the we reflects seeing the in some discretionary spend, what today I in areas

if large so balance pipeline. at also in large in of see pipeline that is a We but we terms point we making sure show early of, macro, very any level, part deals as in the strong the sort see future. today, the a areas becoming of, also areas the other are we see this, somehow of sort watchful deals some those of programs and, we the a cost have But signs

you. Thank

you. Thank

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

the over growth. your growth rate horizon number, XX% Hi, to is lot you XX% we to of could thank just just operating attrition how your the you subcontractors if reduce calendar the for taking tell think I by your asking how I'm we thinking to the be specifically, investors' bit ask maintain will about about as question. we should characterizations growth the see I little year you what the something sensitive slow And pick specifically wanted wanted lower sort your I more could a look a and/or ‘XX, fiscal to could margins of sensitivity let revenue the you you you. sensitivity Or on you revenue just you any of as subcons, longer-term than look margins? such the were headcount year? could of a to continue out of if question that And let Thank rate, margins? to and/or growth to margins concern like can lower what take growth operating attrition which address that

Yes.

is quite answered to fixed to cost business. question the most that yourself, services operating our but quite pivot model reality element small, of the is fundamentally operating other fast and compared business, can the I leverage we IT you think

line. these can your our intake -- on of the and terms the like of -- in all of pivot your get intake can lateral, gradual you firstly more quarter freshers, to your you right, by cost you structure point of subcon, in these So mentioned, -- fall attrition, actually

industry. don't unlike I drag and a cost high think fixed it's So big

I seeing think pretty were COVID So example, say, six past attributed cost at the everybody money. also that time. negative much a to floor on during pivot in degrowth they nonetheless, see we able we when the when growth But looking were front. seen the in didn't it, growth margin sense, But is entire perfect month industry at we've least the that I would period even our at that the in time

Okay. to wasn't structure Yes. And to asking I sustain be the margins clear, the you was asking answering growth sensitivity can even of think were think to that guide about, you're okay. I to that for you margins. but I we just slow, rate cost growth regardless manage revenue if your

comments any year. how And Okay. exit more attrition should on you about thinking specifically as we the be

we about said be look thinking would And should attrition the end it we point a quarter? year? in be kind but Or to as You of how move of thinking your a fiscal you lower, for it we should out me. that's

Yes.

in this we I into and coming a down. ahead. going because like we what's of decline that XX-day quarter us X.X% figure period And of that seeing itself indicators -- in Salil and of attrition not like quarters good -- a that gives reasonable view has mentioned So decline consecutive QX three going to geographies continue haven’t think notice

Okay. thanks. Many

you. Thank

Our Pande of ICICI next question the from go from Securities. ahead. is line Aniket Please

as and to increased the transformation deal two your to tenure last I wanted the understand Salil, Hi. quarters? Thanks changed the wanted have And now the I deal TCV compared since cost to mix trained opportunity. number. of just optimization has understand three between before? trend questions. for how

Salil. So thanks question. for is the This

on large itself, deal the you asking deals? declared TCV on First, pipeline we are large at the

The the trend between actually. TCV

the deal So large we --

cost changed how transformation. and And between has the optimization mix

Yes.

at on within have deal we it there, large numbers. itself, So looked the our

growth that share with programs. pipeline And can information a of growing. seeing, our I are we also of cost is but part we reflects good we course shared that growing also So also see the that's focus earlier, today What sides outside. in shared which core programs, have that in not see digital the cost core we on growing, of over because I now XX%, you we what have is both

And they to tone pricing, you. just Thank quarters. how now, since have then pricing progressed how And the of wondering two Thank and in? have you So conversation you. question. turn Last I tenure are if and what been right building right? last

Yes.

is impact [indiscernible] said, deal, really is SPD, specific, Cola or we like it it a a courses. have clause. that is it's is So, renewal, is is is complex. whether new there have really, I quite message, has for we it definitely pricing, the of the based more one which It horses It said clients used seeing appreciate we renewals, because of But be come is we a a discount, T&M is et a client a are large, same also et that terms client in it have actually and cetera, in down, to the lot order on focus the attrition, on that cetera. clearly

customers you in in -- terms seeing put implementation are show seeing clauses, more, large to you what the thing are transformation a we’re card, that have to rate cases, to clients of of being dollars. terms a In the is Cola we increases. some the more of Cola to some digital it of some offer able So are value we able of of

like I said, going varied across it's So going I said, clients, be we've it's said continues. that easy haul, like to never be but it's and a to long

you. Thank

Thank you.

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

and on good was My side. for you win understand us Salil, evening help for taking question, deal you thank my the to first team question. Hi,

of same taking some in sharp at in almost are deal At cautious the in deal more a turns. some quite has side basis. clients which especially Y-o-Y the coming we talking time, new of seen have about doubled win, we acceleration some So and the the both verticals caution and quarter-on-quarter

level or So the a focus then? in still are getting by the are these it that CXO the these what deal see the is higher is the concerns cost discussions and driving caution we in wins? our to deal Or side? sharp that new compensated increase on of Is context, yet that at impact in

I automation. wins think represent Thanks Rakesh, core have sides and that both of The Salil. on the digital capabilities, on on we deal this is the strength

a are as And so is, We've more with overall my little looking also clients. they there have facing today ability is and the our we our this say, approach. deals the automation a for sense depending for appropriate seeing And what clients ready macro proactively within let's are emphasis have from pipeline cost on we have that. bit what peers at be differentiation sides, both our we macro to put with on we evolves

in it's deals So that four that, no in to period always also is on $XX and are which for and trend said are kept that something be mind. It's deals, to keep mind quarter Having over give is at these sense, this. you so not, that's more are also that to a we've us quarter-on-quarter look what's there driving. maintained million large

it. Got Thanks that. for

done Second band question margin was coming closer we about talked and this for Nilanjan, though to you in already XX.X% margin XX% have have and quarter.

we implies, our effectively subcontracting about the that that improvement cost when on. started is concerns context the that So talking easing down. And side in also from margin coming and have expecting we are here are meaningful not is supply and sequential

year? it do is two this we expand not but side margin from these expect to do when points where issues on the all So supply here are, linked, need

Yes.

So I XX.X% And to think for XX% XX%. firstly, the we we like right at HX. are guidance for said,

which into and quarter the a to though seeing are which all the from working in also in we we straight that benefits given dropdown basically figure and of because for getting days weak our margins. these lower attrition a year. away going lows the into We some of Yes, we seasonally guidance are well, QX, play have a as QX

my answers you. it. That Got question. Thank

Thank you.

of Dipesh line go ahead. the Mehta from Please from is Global. question Emkay Next

revenue are implying first you Thanks the opportunity. for trajectory, the moderation which guidance. about in Two growth questions, from revised

So you some can be considering, happening two us next likely there of help you which in which understand sizable alluded be to even But the after seems is to softer. segment moderation, quarters. are some

the sense you us can more where some any intake. Second client-specific is seeing you where about if situation? So of industries are there thing weakness deal throw specific

is which lead say, do or are higher how to you seeing are closures Thanks. few pipeline business? deferring for think deal Now, you you cost any cost indicated mega provide some in And would if TCV and you deal, about if let's next quarters. to strategy the those progress take up programs, can takeout clients deal overall it can, shaping we uptick, mega

I Salil. all didn't it. of is this Hi, follow

in I but macro future one talking firstly the the to is what growth that's go QX by the color segment, we growth our give overall more looking environment first deal earlier -- demand, large The the doing has back for and sides core overall, or well, strong automation. both follow we quarter I both the if shared future is that QX, about think didn't point. more at the some question. We segments, by next I our pipeline and engine, areas, and caution, which Then deal with of are don't digital are engines

think uptick, you the The do mix is which program, digital second in have takeout in discretionary question to program which high TCV? is one cost we seen quarter tenure compared program was deal or are those showing because cost which generally will they [indiscernible] overall be and QX, about say towards volume now efficiency deal Considering TCV generally large expecting. clients of even efficiencies, tilting are

on others, of level. with see So the that discussions more the optimization, a some follow good we I what of we saying, industries, of see that. our you're at cost In clients. if moderate In

-- it good are build down, because again, growth $XX some which million, also these showing is up core of we take and in that's a are where up. go time seeing traction and the can TCV, to us Deal services. deals up to over these So these quarter-by-quarter,

there in look of across. looking at shared, large Nilanjan were QX. way is if there on an I a annual But XX deals more cycle, good As deals

quarter-on-quarter simple forecast a can down. we where have way on It we don't go basis, like a it. So up and

me let and And by do larger you such that you in rephrase cost nature takeout will question, think between digital takeout it size the be the size of don't deal or any kind? cost think

So the deal. the size of

large sometimes because not very client No, did a could sometimes be cost so, digital transformation don't the think is program. and there there efficiency be program, of large modernization sometimes cost program follow could there I efficiency Sorry, only plus a that. I

smaller larger So one that. like is and not is like one there is

Understand. Thank you.

Thank you.

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

this for opportunity. Thanks the quarter. evening. the performance good hi, I wanted client on to Yes, ask

of has the most think come from been the I soft. And So relatively top revenues have non-top XX XX.

a on, you question. wanted that do the first softness And you're just see I do sort sort up? thoughts on your is think that hold what So that's seeing continuing? of you of -- remaining the can So

years, you sort were sort mix deal you. was smaller-sized lot faster conversion thought there' led more the the such in setup I no a think conversion. deals deal reasonable a -- there sort the one second to optimization, revenue that of revenue past The and wherein overall down of to conversion Thank of should think over process. it's new of or and that slow deal you cost -- do is, velocity two Do the think to

at the with higher revenue. a conversion start correlation to is big I level, no general, one, of the deal a between there second in

is than there other of There Sometimes which size there I top point is out sometimes more in [Multiple real are it Speakers] on can early is it's is something. that, which first a the like $XX the is specifically was conversion immediate like the no large more there correlate the think impact, to times and because transformation, rapid large drawn client million. And transition deals, you

the it XX think kept think be fact. for I to about that seeing reading mind. I'm The in anything clients. XX.X. there's don't probably was also thing decline from time. to the XX.X No, one I But question first in

down applicable like we going Europe could in nothing et cross mix, right? during right? certain time, So in or the be geographies, So there's the but who currency have cetera this clients anything Like there lot that. could top seen of unusually XX be in

So, fair enough.

end, services the one quick piece concerned, market heard big from so us of even is I for last within call normally one financial in cost should capital but the any that I Just my a of be far. that think how because and

So same? thoughts on just the your wanted

we the we up services. financial given segment break beyond have typically there, what in So don't

We have a as very other and management retail, good business among in capital markets across the market, capital board, services but all asset insurance, things. financial

that there within it? But that seeing at piece call you're out to is or so that wasn't just the all, slowness any

There of we the, and what retail, to were I telco. stage so on shared called we ones mortgages -- the was related this hi-tech at not oarts are financial earlier, out services and which

so you Sure. the and much, Thank best. very all

you. Thank

the Our line next question Sandeep is of Shah from go ahead. from Equirus Securities. Please

Yes, opportunity. thanks the for

Just -- to

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yes. Yes,

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now? I Am clear

This is is This better. fine sir.

Yes, yes.

So, now? I start can

Yes, question, please. Could please. you the repeat

Yes, yes.

So digital despite optimization derivatives, look the softer ask is rate to cost talking more the guidance also to along in X.X% achieve strong the we are deal about a X% coming quarters, the with few next deals. which

So client-specific or a I it than the issue at higher macro issue this I later. is ask conservative of follow, way of have things, furloughs we is more a second it And normal or the looking is factoring are a in half? because will higher which

we've for larger. in the in that more is QX of higher as we estimate a I that's both we not seasonality previous shared anything We earlier or then the QX have has us sort developing so So seeing essentially have there, put were what years, typically, guidance estimated. the macro, to lower. color are And estimated what QX a years. we past furloughs, then the for and have similar what the you We've and know, factored had we sort first, of we typically as

it's So whether view have conservative, and factors there or taken into account is not say guidance. to if say, develop additional those no, we the conservative let's

the Yes. And follow-up is the to question Nilanjan.

of we versus cost, XX.X% a the in there utilization, should cost past at first on cost, we we about? conservative the say your quarter are lower are subcontracting margin XQ, was quarter. may be EBIT terms headwind fair to comment way well is the -- implying additional likelihood if as XX.X% the This decline So XQ, are Q-on-Q second second few Nilanjan in increase the lower in is we of of half aware some are look as which margin again in of I and or likelihood it XQ, guidance see we versus in a margin, Q-on-Q

that's think don't I conservative. No,

have leverage question our and seasonality in I that some through see think we terms realistic that margin will operating a that lever as subcon levers of guess course will the impact some I growth came attrition are et really in the the cetera volumes impact said, the more of certain of margin I of have but change impact, and some of also don't dramatically be longer-term come, yes in you headwinds. across we those sense, We profile. of the in projection like the see furloughs, at

[indiscernible] for leverage. operating there, some you SG&A instance So have

figure So are multiple that's factored all for and these into and which things, we've the HX full-year. given

quarter XX%. or Is tailwind thing last basis? a pay, payment a might looks was a just quarter? on pay second And headwind How the okay. paid variable it first it in have Okay, on like Q-on-Q the we in variable the the

So variable, don't number externally. share on that we clearly,

what we do come know, you an it disclose will internally. with we back As when from internal basis we

the And best. all Okay, thanks.

you. Thank

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

thank you opportunity. Hi, for the

to appears about XXX question margin by clarification our related margin at improvement expenses look down cost schedule, subcontracting, that the the When one performance had quarter. are or it bps. Just this

that down opening While you bps. stated in XX your subcontracting remarks,

in So of of understand, is deals large just some to captured cost subcontractors? the cost the taking optimization being

No.

think But on I margin what to impact percentage of is paying is subcontractors premium the over So that employee. of revenue. you're cost the as is a the

So zero, to to can it's subcontractors bring say that down can go token, margin up subcontractor XX%. just a mathematical XX% from if of costs not XX%. we down impact By by if we coming

is paying the a you're which to impacting just That's your is [indiscernible]. this So subcontractors margin. premium

thinking Sure. given seen fresher in the through there And the intake year some sector of intake. reports regards hiring the terms of to that half the have year, media target are hiring that about take the in onboardings? fact fresher one full-year question the we fresher believe companies the with the last of the in we've How already been was we’ve second

Yes.

So we be yes, -- be will at will said, are And we in I above like XX,XXX. the XX,XXX we HX.

go will above but later we get the is, what on back number XX,XXX. course, Of we'll

Sure. and the the Thank for all you future. best

you. Thank

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

and this quarter, we margin improvement Thank you Could see dropped. utilization started excellent has on your about to as utilization especially how you bit and attrition considering talk for performance congrats headroom decline? has margin that a

Yes, sure.

we've in what think lower much they than of have is that a we are in think brought of want facility we sure been. we at Mysore that I So XX.X%, training historically way bench. are in, in which our But -- plus learning it both freshers, make part course I the to the on

putting to them to over End this long-term this train the up hit we fresher able period on and year-on-year, And margins industry and day the not know because into of a picks them a day, therefore, And for strongly on that's So course, time, are are we we investment know account of we make. on this into utilization grow of we them, cognizant through ready take and the projects. one. intake is can a to are we very projects only of can we're of believe demand able rotate can, us. the we as investment we

inching we get figure XX comfortable really towards area. want to are more our this comfortable. back And quite we So course, of

project concerns like started cancellations? we vertical, decision-making seeing thanks. new programs? in when talked about have high-tech, starting are you markets to just industry retail, verticals slower emerge for seeing telecom actually and Right, the And are Or we

where today, that we that see work, there we So slowness area. are are in discretionary seeing

else anything those starts We will on in watch specific verticals. keep a that to develop industry

we proabably cancellations yet? should there no adapt to Salil have -- So been

we of So the of in slowness programs. we don't see the cancellations see discretionary program, part

much. so luck. you Thank Okay. Best of

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

for Thanks, everyone, us. joining

-- and engines And delighted core for performance automation, with. which us we comments we large both And We makes we believe very to have close me of and a growing, environment. few for that in capabilities. resonating. really industry-leading out. which first, have capabilities we and a $X.X Cobalt set we strong leading margin had of billion, are core, macro XX.X%. very summary, sides -- ready business, of evolving from In both digital is are our us. deals a And Digital the Just strong had

the program we these our strong Attrition impact a of And put us that internal So help huge focus. some margin a we is of we coming down, drive cost initiatives so see time that things. of in all is ago. will part clearly place have

quarter good feel that's we'll overall, whichever we and a we up well or catch joining, ahead in environment we so. quarter, in in you that that had are a evolves coming scenario So positioned for and for Thank the all environment.

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