Q3 2021 Infosys Ltd Earnings Press Conference

January 13, 2021

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[Company Representative] (Infosys): There we are.

And its Infosys was one of the top employers, India based tech services and consulting giant company as all fits commitment to higher Americans for jobs returns and hiring.

[Analyst]: Infosys.

[Analyst 2]: Infosys.

[Analyst]: Was one of the top employers.

[Analyst 3]: India-based tech services and consulting giant company has upped its commitment to hire Americans for jobs.

Salil Parekh: In terms of hiring, we have plans of recruiting approximately 15,000 college graduates in India and approximately 1,500 college graduates outside India across multiple geographies. We are extremely proud that we are carbon neutral in 2020. As long as all of us in the tech business can switch to where our clients' demand is, I think there's a bright future for us.

We are planning on outbreaks and will be approximately.

18000 College graduates in India, and approximately 1500 college graduates outside and across positive moves on fees.

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[music] as long as all of us in the tech business can switch to that fly and demand is I think there's a bright future for us.

[Company Representative] (Infosys): There we are.

[Analyst]: Infosys.

Bose. This was one of the top and employer, India based Tech services and consulting giant company as outfits commitment for higher Americans for job in terms of hiring.

[Analyst 2]: Infosys.

[Analyst]: Was one of the top employers.

[Analyst 3]: India-based tech services and consulting giant company has upped its commitment to hire Americans for jobs.

We we outlined in his opening for people doing approximately.

15000 College graduates and India, and approximately 15 non rated college graduates outside and across positive moves on fees.

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Really proud that yes, golf and you showed yet and 2020.

[music] as long as all of us in the tech business can switch to add I fly and demand is I think there's a bright future for us.

Good evening, everyone and issue on I'm very happy new year. Thank.

Salil Parekh: Good evening, everyone, and I wish you all a very happy New Year. Thank you for joining Infosys Q3 FY21 financial results. My name is Garima, and on behalf of Infosys, I'd like to welcome you to today's press conference. Before we begin, I want to take a moment to remind our attendees of a few guidelines. All journalists will be on mute by default throughout the press conference. You will be requested to unmute yourself when your name is announced for asking a question. In case you get disconnected, please rejoin using the same invite link. With that, let me invite Mr. Salil Parekh, CEO, Infosys, to give us some highlights of the quarter gone by. Over to you, Salil.

[Company Representative] (Infosys): Good evening, everyone, and I wish you all a very happy New Year. Thank you for joining Infosys Q3 FY21 financial results. My name is Garima, and on behalf of Infosys, I'd like to welcome you to today's press conference. Before we begin, I want to take a moment to remind our attendees of a few guidelines. All journalists will be on mute by default throughout the press conference. You will be requested to unmute yourself when your name is announced for asking a question. In case you get disconnected, please rejoin using the same invite link. With that, let me invite Mr. Salil Parekh, CEO, Infosys, to give us some highlights of the quarter gone by. Over to you, Salil.

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Salil Parekh: Thanks, Garima. Good afternoon. I trust each of you have had a great start to the new year and continue to be safe and healthy. I'm delighted to share that we've had an exceptionally strong quarter across multiple dimensions. This was made possible by the enormous trust of our clients and our extreme focus on digital and cloud. Let me share with you some of the highlights. We achieved the highest large deals win in our history with a deal value of $7.1 billion. This includes the largest deal we signed in our history and what we believe the largest deal in the history of the Indian IT services industry. Our overall large deal value for the nine months of this financial year is over $12 billion.

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And we like this in share these items exceptionally strong quarter across multiple dimensions. This.

This was made possible by the and all the stuff and not extreme focus on digital on trial net.

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We achieved the highest lobs you win in our history with the needed value on $7.1 million.

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Salil Parekh: Our net new large deal value for the nine months of this financial year is over $8 billion, positioning us very strongly for the quarters ahead. Revenues in constant currency grew at 6.6% year-on-year and 5.3% sequentially, allowing us to continue to gain market share. Digital revenue grew at 31.3% year-on-year in constant currency. We have now crossed a significant milestone in that digital is over 50% of our business today. We delivered an operating margin of 25.4%. Looking ahead, we continue to see a momentum in our business, strong market share gain, and increased speed of digital transformation for our clients.

Net deals on.

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Very strongly for the quarter.

Revenue in constant currency grew at 6.6% year on.

Yeah, and I want to use this and sequentially, allowing us to continually be in pockets yet.

Digital revenue grew up and just want.

Non-GAAP and costly balance sheet.

And we have now for all the significant milestones and that they just do is for 50% on our business from it.

And deliver on an operating margin operating just by going for.

Looking ahead, we continue to see momentum in our business strong market share gains and increased speed on visit from transformation for our clients.

Salil Parekh: With that, we increase our revenue growth guidance for the full year from 2% to 3%, which is what it was, to 4.5% to 5% growth in constant currency. We also increased our operating margin guidance for the full year from 23% to 24%, which it was, to 24% to 24.5% for the full year. Thank you. Now let's open it up for questions. Back to you, Garima.

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Thank you and now let's open it up for questions.

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Thank you for standing back for that money.

Garima: Thank you for sharing that with us, Salil. We will now open the floor for Q&A alongside Salil. We have with us Mr. Pravin Rao, Chief Operating Officer of Infosys, and Mr. Nilanjan Roy, Chief Financial Officer, Infosys.

[Company Representative] (Infosys): Thank you for sharing that with us, Salil. We will now open the floor for Q&A alongside Salil. We have with us Mr. Pravin Rao, Chief Operating Officer of Infosys, and Mr. Nilanjan Roy, Chief Financial Officer, Infosys.

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Hello.

Nilanjan Roy: Hello. Hi. Good afternoon, and Happy New Year to everyone.

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And the interest of diet and to give everyone and equal opportunity I would like to progress on the offense to stick to one question, but he doesnt Wendy.

Garima: In the interest of time and to give everyone an equal opportunity, I would like to request our media friends to stick to one question per leader only. It's now time to take the first question of this evening. Our very first question is coming from Sajeet Manghat from BloombergQuint.

[Company Representative] (Infosys): In the interest of time and to give everyone an equal opportunity, I would like to request our media friends to stick to one question per leader only. It's now time to take the first question of this evening. Our very first question is coming from Sajeet Manghat from BloombergQuint.

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Sajeet Manghat: Good evening, gentlemen. Good evening, gentlemen. My question to Salil is with respect to the IT spend. You've given us a very bullish guidance for revenue, which is increasing to 4.5% to 5%, there. What brings you that confidence? With respect to the IT spend for your client, are you seeing a really big jump coming in IT spend when you go to 2021, 2022? For Nilanjan, my question is with respect to the operating margin. If you can give us some color with respect to what gives you the jump, or the color of the jump in the operating margin, which you have posted for Q2, Q3, and the guidance which you have given there.

And for the revenue line, which is the PD, one FICA pipettes and.

And what being too that on print and it just speaks to guide you spent on on on your pipeline I used for you guys really big jump on Monday night, and when you go to go and do you couldn't do you want to and you could you do well on the link and my question is is to stick to the operating margin and give us some color with respect to what gives you did you don't jump.

Although you know I love the jump in operating margin, which is a bit you meet your force chip flow through to the and the guidance, we feel given day and on the segment from revenue from Mr. allow all you can give some.

Sajeet Manghat: On the segmental revenue for Mr. Rao, if you can give some, you know, color on some of the sectors or segments, especially BFSI space. If you can, you know, give some idea of how this space is growing and what kind of orders you're looking at it.

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Yes, Hi, Steve.

Okay, and you don't give some idea on how this piece is going and what kind of on those you're looking at it.

Hi, Thanks for that question and.

Salil Parekh: Thanks for that question. In terms of what we're seeing with the technology spend and therefore the guidance. Where we see a lot of our large enterprise clients now looking at, there's a huge move to accelerate digital spend to do more things on the cloud. We see that with all of our investments over the past, we are now ready to participate and play in this trend massively. We've made sure that all of our capabilities are ready for this. Then with some of the large wins we've had, some of the numbers we've shared over $12 billion in large deal wins. These are large deals over $50 million in size each. The $8 billion in net new. We feel more and more confident about the quarters ahead. Over to you, Nilanjan.

So from what we're seeing from the technology spend and then for guidance.

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Yeah, and so on the margin from a we are at 25.4% for the quarter and at the same time last year. We were at 21 quite in line or below 250 basis points improvement in margins.

Nilanjan Roy: Yes. So on the margin front, we are at 25.4% for the quarter. At the same time last year, we were at 21.9%. This is a 350 basis points improvement in margins. As we saw, as we mentioned previously in the year, when COVID started, we had a three-pronged strategy on looking at our cost structure. The first one was about deferral of costs, which was largely around, you know, hikes, promotions, and even recruitment. As the confidence in the business has returned over the last three quarters, we sequentially, you know, eased this tap as well. As you all know, we are going to roll out our compensation hikes in Q4.

We saw and we mentioned previously.

And Corbett stop and we had a three prong strategy on looking at our cost structure on the first one was about deferral of costs, which was largely it on you know hikes or promotions and even recruitment and and the confidence and the business has returned over the last few quarters, we see.

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Nilanjan Roy: On the discretionary side, we continue to see travel and other costs related to that being very low. That helps us, and some of that will be permanent in nature, but some will start unwinding.

On the district for me side, we continue to see travel and other costs related so that being very low so that tells stuff and some of that will be a permanent in nature, but somebody thought and mining and find your for the strategic view, but which we continue on to accelerate on each year, our non-GAAP element on site and offshore around automation around on Subcom and.

Nilanjan Roy: Finally, of course, our strategic levers, which we continue to accelerate on each year around our pyramid, onsite and offshore, around automation, around our sub-con costs. We will continue to work on that. That has all led to this 3.5% improvement in our margins on a year-to-year basis. That gives us the confidence as we look even into the Q4 and despite the hike, that we can raise our guidance from 23-24% to 24-24.5%.

We will continue to work on that and well led.

Let to the 2.5% improvement and on margins on and your two year basis and that give us the confidence as we look even into the quarter for and despite the hike that we can raise our guidance up from 23 24 for 24 to 24.5 percentage.

And that's a mix perspective.

Pravin Rao: From a segment perspective, it's been a broad-based growth. All the sectors on a year-on-year basis had positive growth, barring manufacturing. Three of the sectors, BFSI, high-tech, and life sciences had double-digit growth. Even on a quarter-on-quarter basis, all the segments had very strong growth, again, barring high-tech, which was aberration. From a BFSI perspective, we have perhaps been one of the strongest quarter, both on a year-on-year basis as well as on a quarter-on-quarter basis. As I said, we have a double-digit growth year-on-year basis and a very strong performance on a quarter-on-quarter basis. The growth has primarily come from three dimensions. One is ramp-up from earlier deals, large deals that we have won.

And then.

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Pravin Rao: Second one is ramp-up on new accounts that we have opened in some of the sub-segments like wealth management, retail services, mortgage, and regional banks. The third area is accelerating the digital spend of our customers. We continue to see a lot of opportunities in digital, in data services, in cloud, and as well as in trying to build capabilities to enable digital banking. The other standout segment to me has been manufacturing. While on a year-on-year basis it was still negative growth, it was a very strong performance on a quarter-on-quarter basis. We also had large deal wins, strong large deal wins in this segment, including the largest large deal win we had in the history of Infosys.

The management and the data and I think that's what the game business line.

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Pravin Rao: We feel very positive about the growth, even though the segment by itself and having a lot of challenges both on the demand and supply side. Despite that, I think, we have done extremely well this quarter and we expect that momentum to continue.

And so and I didn't notice that and that both on the demand.

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Thank you.

Salil Parekh: Thank you.

Sajeet Manghat: Thank you.

Thank you for those questions that he.

Garima: Thank you for those questions, Sajeet Manghat. We will now move on to our next question. Coming up from Kushal Gupta from Zee Business. Kushal, could you please go ahead after that.

[Company Representative] (Infosys): Thank you for those questions, Sajeet Manghat. We will now move on to our next question. Coming up from Kushal Gupta from Zee Business. Kushal, could you please go ahead after that.

Moving now move on to our next question.

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[Analyst]: Yeah. Good evening again. For the new clients, the basic demand supply.

Kushal Gupta: Good Evening [Foreign Language content]

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Salil Parekh: Thank you. Pricing. Let me start with that. Pricing, what we are seeing is for digital work, we definitely see that there is more value that clients are putting to it. And we can see that new digital work over time, if we work at how the projects are being constructed, will give us that benefit of the value. From what we are doing today, overall, the pricing is stable, as you've seen, in the results. We feel broad-based, the discussions with clients is not focused in a negative way on pricing. It's neutral and sometimes positive. Overall, on pricing at this stage, we are quite comfortable. Over to you, Nilanjan.

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Salil Parekh: Thank you. [Foreign Language content] Let me start with that. Pricing, what we are seeing is for digital work, we definitely see that there is more value that clients are putting to it. And we can see that new digital work over time, if we work at how the projects are being constructed, will give us that benefit of the value. From what we are doing today, overall, the pricing is stable, as you've seen, in the results. We feel broad-based, the discussions with clients is not focused in a negative way on pricing. It's neutral and sometimes positive. Overall, on pricing at this stage, we are quite comfortable. Over to you, Nilanjan.

I think I'll, let me stop with that.

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Oh the project on being constructed we didn't give us that benefit on the value.

For what we're doing today overall, the pricing is feasible and you've seen a incentives out and we do go on bids and discussions with clients is off focused and then they can give me on pricing, it's neutral and sometimes positive. So overall on pricing and this historic quite comfortably.

Well look into that.

Yes. So of course follow on your question on travel and yes. As we've mentioned on you have you seen a dramatic reduction and I travel costs and.

Pravin Rao: Kushal, on your question on travel. Yes, as we've mentioned earlier, we've seen a dramatic reduction in our travel costs. In one way, it's very amazing that we've been able to, you know, strike $7 billion of large deals pretty much on a video call. That just goes to show the confidence our clients have, you know, in engaging with us in this virtual mode. Having said that, as you know, the vaccines are rolled out, we would like to travel. I think there's nothing better than meeting face-to-face as well. There could be an impact of that in the future. Work from home and some form and shape is here to stay. I think there will be some benefits in the long run on that.

Nilanjan Roy: Kushal, on your question on travel. Yes, as we've mentioned earlier, we've seen a dramatic reduction in our travel costs. In one way, it's very amazing that we've been able to, you know, strike $7 billion of large deals pretty much on a video call. That just goes to show the confidence our clients have, you know, in engaging with us in this virtual mode. Having said that, as you know, the vaccines are rolled out, we would like to travel. I think there's nothing better than meeting face-to-face as well. There could be an impact of that in the future. Work from home and some form and shape is here to stay. I think there will be some benefits in the long run on that.

And and I made very amazing that weve been able to strike $7 billion off a large deals pretty much on on video call and so that just goes to show the confidence our clients have a you know and engaging with off and that's what took more but having said that as you know the vaccines I rolled out we would like to travel or things and nothing better than meeting face to face and then it could be.

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Form and share because you had to say and I think there will be some benefit from the long run on that now having said that like I said, we have a lot of coffee beverage, we continue to push aggressively on which we'll be able to help us as low as some of these costs come back.

Pravin Rao: Now, having said that, like I said, we have a lot of cost levers which we continue to push aggressively on, which will be able to help us as well, as some of these costs come back.

Nilanjan Roy: Now, having said that, like I said, we have a lot of cost levers which we continue to push aggressively on, which will be able to help us as well, as some of these costs come back.

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Salil Parekh: On the model per se, today we have 97% of the people globally working from home. It's difficult to really predict what the percentage eventually where it will settle down in the new normal. Our endeavor is to build a hybrid model where people will have the flexibility to either work from office or work from home. It is not the same set of people who are always working from home or always working from office. It will depend on their personal context. It may depend on the client context, nature of products, and other things. We are trying to build a capability where we can flex seamlessly between work from home and work from office. To a large extent, we have demonstrated that in this pandemic. We are less concerned about the exact percentage.

Pravin Rao: On the model per se, today we have 97% of the people globally working from home. It's difficult to really predict what the percentage eventually where it will settle down in the new normal. Our endeavor is to build a hybrid model where people will have the flexibility to either work from office or work from home. It is not the same set of people who are always working from home or always working from office. It will depend on their personal context. It may depend on the client context, nature of products, and other things. We are trying to build a capability where we can flex seamlessly between work from home and work from office. To a large extent, we have demonstrated that in this pandemic. We are less concerned about the exact percentage.

Water, but say that today, we have made dependent but since on the people globally are working from home.

It's difficult to really predict a lot the bus and take advantage of any such loans is almost Oh and then what is the bill Hi, Big modern day, but I'd be cash.

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Salil Parekh: Our endeavor is to ensure that we have the flexibility. Everyone has the flexibility to either work from office or work from home, depending where they want to be, client context and their own-

Pravin Rao: Our endeavor is to ensure that we have the flexibility. Everyone has the flexibility to either work from office or work from home, depending where they want to be, client context and their own-

And every other day.

Hi, guys. Good luck.

And then on for.

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Thank you for the items Jasmine and thank you for the question for shot.

Garima: Thank you for the answers, gentlemen, and thank you for the question, Kushal. Time to move on to our next question now. It's coming up from Reema Tendulkar from CNBC TV18. Reema, please unmute and go ahead.

[Company Representative] (Infosys): Thank you for the answers, gentlemen, and thank you for the question, Kushal. Time to move on to our next question now. It's coming up from Reema Tendulkar from CNBC TV18. Reema, please unmute and go ahead.

Thank you move on to our next question on coming up from the much and and we got from CNBC TV I need the money and use that go ahead.

Hi, gentlemen, congratulations on a day the impressive Claudia I have a few questions line. If you could share and what is the outlook for EPS Fytwenty Joel I wasn't growth rates are likely to be and not locked out. When you had on your margin guidance, you said that you and that those kind of margins and not sustainable yet. This quarter you have gone ahead and up to your life.

Reema Tendulkar: Gentlemen, congratulations on a very, very impressive quarter. I have a few questions. One, if you could share what is the outlook for FY22? What is growth rate likely to be? Last quarter, when you had upped the margin guidance, you said that, you know, that those kind of margins are not sustainable. Yet this quarter you've gone ahead and upped your margins. What is driving that, and what could be the sustainable margins going ahead, especially once travel costs, discretionary spends come back? On your budget, if you could throw some more light, how do you expect it to be? On deal wins, are you winning from competition? If yes, how much of your deal wins would have been, you know, won from competition? How much would it be on account of more deals being in the market?

Okay, and I for what is driving that and what could be the sustainable margins going ahead, especially once shot of coffee discretionary spends come back and on.

Hi, bunch and if you could throw some more night, how do you expect it to be I don't deal wins are you winning from competition. If yes, how much of your dealings would've been one from competition and how much would it be on accounts and more deals being in the market and.

Reema Tendulkar: Thank you.

Hi.

Okay. So for for those questions. Let me start on piping for next yeah. We remain extremely confident we gave you see and then we will have a double digit growth for the next financial year up and we have a strong sales of E Bay and very good.

Salil Parekh: Thanks for those questions. Let me start off. I think for next year, we remain extremely confident. We clearly see that we will have double-digit growth in the next financial year. We have a strong set of deal wins, very good momentum, and good outcome for this quarter as well. So overall our business is looking in quite a healthy shape at this stage. On the margins, Nilanjan will come back and give you some color on that. On the market share, we clearly see we gaining market share. We had 6.6% year-on-year growth in constant currency. This growth is just in this environment very strong. We can see it's really leading across the industry in many parameters.

And Jim and good outcome on this one as well and so overall our business is okay and why the.

And at this stage on the margins and and I'll just a week on.

And as you saw on.

On the market share, we clearly see beginning back and share, we and 6.6% year over on your gross in constant currency and this growth and just in.

In this environment and strong and you can see it's really leading across the industry best for them.

Yes, so we didn't feel confident and maintaining market share right on the line.

Salil Parekh: We feel confident that we're gaining market share as well. On the margin, Nilanjan, over to you.

And I just.

Yeah. So I'll give you my desk I mentioned to the.

Nilanjan Roy: Yeah. Rima, just as I mentioned to the previous question, we are about 350 basis points higher than last year for the same quarter in terms of margins. We were very clear as we started the year that this was gonna be a very highly unusual year. In our entire cost strategies, we looked at it in three buckets. One is of course what we call the deferral of our cost hikes, which could be promotions, which could be just pure recruitment and of course compensations. As the year has progressed, we have continuously opened up these taps as well. In fact, hiring started with Q2, promotions started in Q2 and Q3, and in fact in Q4 we're gonna roll out our compensation across board.

And the previous question are we about 250 basis points, so hi than last year for the same quarter and from the margin and we were very clear I have your stock and the young but are there for one of your very highly unusual here and in our entire cost strategy. We looked at in three buckets. One of course for what we call the deferred and off our cost hikes, which would be promotion.

And which would be disruptive for recruitment and of course, compensations and and the yard has progressed, we have continuously opened up beast apps as well. So in fact hiding started with Q2 promotion started in Q2 and Q3 and in fact and Q4, if you're going to roll out our compensation across the board. So that's something we are their life, which really become and hiccup.

Nilanjan Roy: That's something we realized which will come and hit us back. On the other discretionary costs, whether it's on marketing, whether it's on our brand building, whether it's on travel, those have come down as you would understand. Again, once the pandemic you know, eases, we think some of those costs will come back as well. Our strategic cost leverage, which is something every year we are very, very conscious of, and it's a very tight program we run across our pyramid, across our automation programs, on-site offshore mix, subcontractor costs, operating leverage, we continue to drive on that. We are at 24.5% for the first nine months of this year. We will have the impact of the compensation.

On the other discretionary costs, whether it's on a marketing EBITDA. It's on our brand building, whether it's on travel and have come down as you would understand.

But again events and to make on you know he says we think I'm on those costs are weighted come back as well, but our strategic costly but for just something every day, we are very very conscious off and it's on.

Hi type program, we run across operating them and across our automation programs on site offshore mix a contractor costs operating leverage we continue to drive on that so we are at 24.5% for the first nine months on this year, we will have the impact of the compensation, but as we look on to next year. I think we also confident that we have a tighter.

Nilanjan Roy: As we look on to next year, I think we are also confident that we have a tight cost optimization program, and we'll come back with more details on the margin as we go into the next financial year.

Optimization program and we come back with a more detailed on the margin as we go into the next and actually.

[noise]. Thank you so much for the aggression and remind you.

Garima: Thank you so much for the question, Reema. We will now move on to the next question. Coming up from Chandra Ranganathan, ET Now. Hi, Chandra. Please unmute and go ahead.

[Company Representative] (Infosys): Thank you so much for the question, Reema. We will now move on to the next question. Coming up from Chandra Ranganathan, ET Now. Hi, Chandra. Please unmute and go ahead.

And a novel onto the next question.

[laughter] now Hi Tech.

Yes, I mean and black.

Hi, I'm hopping and yes, you're on if you will and and he congratulations on completing three on I know in force is I think it was on young and they can swing items.

Chandra Ranganathan: Hi. A happy new year to all of you. Salil, congratulations on completing three years at Infosys. I think it was on 2 January 2018 that you took charge. Weeks after taking charge, you said you would need three years to transform Infosys. Would you say you've met that goal, or are you perhaps, you know, one or two metrics short of that? How would you describe the first three years and perhaps the next year? Two huge deals that you've got in the last year. One of course is Vanguard and Daimler, which is supposedly the largest in IT history as you said. I hope you can also give us a number for that deal. Are there more of these billion-dollar deals in the market now? Will we see more of this opening up?

Hi, I'm not sure that you would need to see on six on funding sources. So what do you see your line that's going on I, perhaps you know what I don't want to make sure that how would you describe this on Gi net.

The next day line.

No no.

She wants to use the Dupont and lots for one of our non-GAAP, the non which is and what the.

Gotcha and she is and what you can once a month and I'm looking for that do you like on.

It depends on the deal in the market now when we see more visible.

Chandra Ranganathan: Will this come from continental Europe in particular, which is turning out to be a strong market? Nilanjan, a question for you. The nature of deals is also changing. A lot of these deals entail absorbing employees from captives from these companies. What impact will this have on margins? You know, will there be margin dilutive? Finally, Pravin, coming to you. I believe you're retiring at the end of this year. Will you seek an extension? Have you started looking for another COO, or will it be an internal candidate? Some details on that. Also what percentage of your employees are currently working from home? Thank you.

On the names and Gilligan in particular that was just starting off from knocking on your non Oh well.

For the need for.

For changing a lot and eat these deals and even absorbing a employees from GAAP. It's from these companies what he thought well. This is Tom on margin and you know well Libby large and John you want them and.

I need to be I mean, the lot even on the dining and that's where you see.

Hi, good expansion on have you started looking for it and other people eating Donna on today and mediums on that.

What percentage of your employees on current events.

Thank you.

And on time and stuff.

Salil Parekh: Thanks, Chandra, for those questions. In terms of the three years, I think we've achieved really a comprehensive set of transformation activities within Infosys. To give you a couple of examples, with 50% of our work being in digital, it really demonstrates from where we've come to where we are and how clients are perceiving us. That's just one example. There are many, many other parameters. Our growth today is really leading industry. We're winning market share. Some of the large deals, whether it's on digital, on cloud, on data analytics, they show the comprehensive nature of how Infosys is working in strong partnership with clients to make all of this happen.

For those questions.

In terms of GE, and I think we've achieved and Andy and comprehensive and say, though transformation activities within Infosys, you confidently Doc loans with 50% about well being and they should do and Ginny demonstrated from babies come due and the yacht and.

Oh, Hi end up and she didn't know and that's just one example, and and many many urban outfitters are loads to be using industry and winning market share and some of the bodies and so did you do on cloud on day.

And it seems they showed and comprehensive nature, Oh, Infosys is working and strong partnership with clients and make on on this profit and finally I think all of us within Infosys on working in a very strong and by me and employee survey and a very difficult environment and be more G.

Salil Parekh: Finally, I think all of us within Infosys are working in a very strong, unified way, in a cohesive way, in a very difficult environment, as we've all seen through this crisis. That's given us an extreme level of confidence to go out in the market as the world opens up again. Yes, it's been a good three years, but there's always more things to do, and we look to do more and more for our clients as the time goes on. In terms of what we see for next year, the business momentum itself remains extremely strong, as I shared earlier. Overall, we continue to see the market share gain coming into us, and we continue to see this type of momentum within our business. Our pipeline is still strong.

This crisis and that's given us and extreme you never know confidence to go out on the market has the war zone.

Hi, again, so yes, it's been a good yes, but there's always more things to do and we look to do more and more practise and as the time goes on.

Hi, it's done zone or what.

Well, what we see for next year.

And this momentum and send it back.

And are extremely strong, though as I share.

Overall, we continue to see the market share gain coming into us and we continue to see this type of momentum.

Hi. This is a pipeline is still strong across and do you want me to share at least on non use and.

Salil Parekh: Of course, as we've always shared, these sort of large deals, they're more volatile. They come in some quarters and not in others. If you look at much more of an annual cycle, we remain confident of the nature of client interactions and engagement we will continue to have. Let me pass it on to Nilanjan first, and then Pravin will come back with those other questions.

Oh, all the time that becomes some focus on others.

And if you look at a much more on.

Sales I continue to be involved in on the nature of price action.

He was pretty good for now let me pass it on line.

Yes and.

Hi come back that goes on.

Hi.

Nilanjan Roy: Yeah. Thanks, Salil. That's a very good question, Chandra, on the margins. As you know, of course, we operate with a portfolio. There's a portfolio of large deals, small deals. There's a portfolio of newly won deals and deals maturing. When we're looking at large deals and of course, from day one, when clients expect savings, you know, initially there is gonna be a pressure on margins. Over the life cycle, we know that there's a lot of the cost optimization levers which we have, which we can deploy. We've learned that, you know, over our 25 years of history. Whether it's automation, whether it's on the onsite offshoring, whether it's on the pyramid. Therefore, when we look at the deal life cycle, we can definitely would like to see these large deals moving towards the overall portfolio margins.

Hi, Thanks for that that's a very good question from there on the margins as.

As you know of course, we operate with a portfolio and day the portfolio off large deals small deals as a portfolio of newly one deal done deals the majority and so when you're looking at larger deals and of course from day, one when clients expect savings you know initially day out there is going to be a pressure on margins, but on the lifecycle, we know that there's a lot of b.

Cost optimization leave and which we have a which we can deploy and we've done that you know we're not for any five years of history.

Hi died automation and whether it's on the on site off shoring, whether it's on the pyramid and therefore, when we look at the D. lifecycle, we definitely would like to see these large deals moving towards the overall portfolio margins and on lumber have shown that over the last few years. While we were also ramp up not views. We've also feed on margins going up. So this is something I think.

Nilanjan Roy: Our numbers have shown that over the last few years, while we've also ramped up large deals, we've also seen our margins going up. This is something I think the company has, you know, really, you know, to run it like a tight ship. Of course, we have one-offs once in a while. Initially you may have some rebadging costs, et cetera. Overall, in the life cycle of the project, I think we are very, very confident on, you know, where the margins are headed.

The company as you know Uh huh.

And it really and.

And I don't like a tight ship of GAAP, we have one on one thing. The white you know initially umass on rebadging cost et cetera, but overall in the life cycle of though a project, though I think they are very very confident on where the Mike and I had it.

Yeah.

Pravin Rao: Yeah. On the retirement question, it's one year away, so I'm not really focusing on. Twelve months is a long time. In terms of work from home, today we have 97% globally working from home. It's about 98.3% in India.

On the and then those 10 minutes and let me add on.

Hi, so I'm not really focusing on that does not depend on balance.

Oh, and the and in terms of books.

On the bottom line for that.

And they get done for sense, Nobody Lucky income.

Hi, it's about 8.8 percentage.

[laughter] line 19, 97.3 and thought he I didn't get that.

Garima: Sorry, is it 19.98 or 97.3? Sorry, I didn't get that number.

Chandra Ranganathan: Sorry, is it 19.98 or 97.3? Sorry, I didn't get that number.

97% globally, maybe 8.3 buttons and India.

Pravin Rao: 97% globally, 98.3% in India.

Thanks for the responses and and then next.

Garima: Thank you for the responses, gentlemen. Next up, we have an audio question coming from Sharad Dubey.

[Company Representative] (Infosys): Thank you for the responses, gentlemen. Next up, we have an audio question coming from Sharad Dubey.

Hi, I'm not.

And on your question is coming from China and do they.

Hi.

[noise] [laughter] hi, accommodating.

Salil Parekh: Congratulations, sir.

Sharad Dubey: Congratulations, sir. [Foreign Language content]

In addition said about PTC might get and then lunch on that P. on 11, new on margins, maybe but a TBD here for me and I am I missing.

Garima: Sharad Dubey.

And did you take easily just like they should make across the board on group because income is that still kind and they get 2020 on lets say you and I do but it's maybe things that you should conclude they keep on and maybe we can let definitely not speaking to.

Hi announcement and specially jump up and you will be suspended him and that's on politician.

Hi, I know made up for lead Gen HAE Angels and two capital declined only get to these one day, especially low me for catalyst for me flow. It was it did you see in total.

And he can implement that on adjusted slightly different different teams, which allowed I believe for look at things and look at night and backing up on the IP question have made on the line didn't you say digital margins had on margins Mitchell that and I believe and he had a timely and cost amending and equipment of music deal or two on log overall, what did we hold these skills.

The expenses and then when you look at least map on us mix for teens got thank God for margins for no I pod and deeply on if we don't secondly, no attempt and and you get English and asking you.

Salil Parekh: Thank you for the questions. In terms of demand, the demand environment for calendar 2021, the budgets are looking quite robust, especially when you look at the digital transformation agenda of the clients. What we are seeing is through the crisis of the last nine months, there's been an acceleration where large enterprises are looking to spend more to make sure that they are better prepared in the digital world. To that extent, all of the capabilities that we have built up, whether it's on cloud, on experience, on data analytics, on cybersecurity, on AI, and automation. All of those we can see a great interest from the clients. Many times for a combination of all of them to give us the large deal construction.

Hi, Thank you for for the questions Joe on and that's about right. There on the demand this demand environment for Cat and you know 50 last and budgets on looking quite robust.

Lastly, and he was okay. This did you do transformation agenda on that.

Hi, it's what we're seeing is a true the Tysons, Oh and last night and bonds, there's been an accent and they shouldn't my life enterprises and looking to spend more than day, shortly and that just a bad and any decision to go and I do that makes them all on the capabilities and we are.

And Josh, but and it's.

Hi, cloud on Expedia and on these diagnostics on cyber security on T. and automation all of those you can see the incentives on for clients and many times for combination of autos and to give us the last piece and such so we feel quite confident today and.

Salil Parekh: We feel quite confident today that this will continue in the calendar 2021 outlook. With that, I'll pass it to Pravin.

This will continue in the cabinet and.

Okay.

With that positive and study.

Yeah.

Pravin Rao: Yeah. As Salil mentioned, today we are seeing a lot of digital transformation. In this pandemic, we are only seeing acceleration of that. Cloud is actually foundation to drive digital transformation. It's foundation to drive agility as well as drive innovation in the environment, in the ecosystem. You will see a lot more of plans across industries, across geographies, migrating workloads to cloud, embracing and adopting cloud in a big way. It so happens that in this quarter we have seen a lot more of those opportunities in Europe region. But it's not a secular trend. We will continue to see opportunities across the board in other geographies as well, and across segments.

Yes, Selim and send a two day reacting to load up and it does and then they send them and independent Nick and on leasing acceleration on space.

Relative backflip on basins door blended interest and somebody can ER on patients a day liability.

And I mean, and listening and then and and ecosystem.

So you'll see a lot model and plans on those industries and across geographies.

Make anything work doses or die and basing interrupting sodium.

It still happens on that and give quarterly EPS in a lot more of the Gulf of Mexico and Brazil.

But it's not a tech left and he was a deep and dealt with net.

On the board and other geographies and across segments.

Pravin Rao: As I said, it's foundation for clients in terms of driving agility and building resilience in their own operations.

And I said its foundation for that and stuff and so.

Operating that lithia, and beating the affiliates and middle <unk>.

Yes on the question on margins as you know where we are at 24.5 for things for the first nine months. Our previous guidance was 24 to 20 from 23% to 24%, yes, we have on that up from 24% to 24.5% or we think we can achieve this high.

Nilanjan Roy: Yes. On the question of margins, as you know, we are at 24.5% for the first nine months. Previous guidance was from 23% to 24%. Yes, we have upped that up from 24% to 24.5%. We think we can achieve this higher guidance despite the pay hike, which we've announced, from first of January will roll out. Like I said, we have a lot of cost levers we continuously deploy, so we are quite confident in the new guidance.

Hi guidance, despite the pay hi, which we've announced on from for US again reviews rollout or low.

Like I said, we have a lot of cost even if it continues to deploy so we're quite confident and then your guidance.

Hi, Thanks, so much now move on to the next question.

Garima: Thank you so much. We will now move on to the next question. It's from Stuti Roy from ET. Stuti, go on.

[Company Representative] (Infosys): Thank you so much. We will now move on to the next question. It's from Stuti Roy from PTI. Stuti, go on.

It's now my studies right from.

Yes.

[laughter].

Hi, I have two questions first is on and I just from the momentum that you're seeing the free.

Stuti Roy: Hi. I had two questions. First is on the strong deal momentum that you're seeing, the pipeline being strong. Are there specific verticals and geographies where you see these, you know, big deals coming from? That's one. Second is on the attrition that's come down to 10%. Given the kind of rebound that we have been seeing, is this likely to change in the next few quarters? If I can get some insights on what sort of hiring could we see in 2021. Thank you.

And then being strong on this specific verticals and geographies and you see these Ah you know big deals coming from that's one and second just on the attrition that's come down to 10%, but given the kind of free bound that built and seeing a is this likely to change and the next few quarters and.

Back and get some insight on what the hi, hi didn't could be.

In Q1, thank you.

Yeah, let me start off and actually probably be able to get on with much more on all those we'll see volumes on a lot of news the EPS.

Salil Parekh: Let me start off, and actually Pravin will be able to give much more color on all of those three points. On the large deals, we are seeing it across different industries today. As Pravin mentioned earlier, we have seen good traction in financial services, in telecommunications, in high tech, of course in manufacturing. It's quite broad-based. Even as you were just saying, in geography, we see across different geographies in the geographies we operate. Let me pass it on to Pravin, and he can go into it much more on all those points.

See it across different industries can day.

And so he mentioned earlier have you seen a good traction and financial services, and then communications and Hi, Dan Hi.

Our costs and manufacturing and shown on slide broad based on and even the and he would adjusted and he and geography, we see ER across different geographies and from a dog eat dog eat update let me pass it on production and indeed.

And for isn't that much for all the yeah.

Pravin Rao: Yeah. From a large deal perspective, again, as Salil mentioned, it's been broad-based across verticals. In this quarter itself, when you look at $7.1 billion large deals wins, we had 22 wins, out of which 13 were in North America, 7 was in Europe, and 2 in rest of the world. From a vertical perspective, we had 8 in financial services, 4 each in utilities, energy, resources, as well as in manufacturing, and 3 was in communication and 1 each in high tech and retail. We expect this pattern to continue. The pipeline is pretty strong, and we will continue to see large deals across sectors and across geographies as well.

Yeah.

It's on a non build perspective, again, upselling and its and its been up for our base that conflict because.

And this quarter itself and then we've got a $7.1 billion not bids that you have for him to win but up and that being that in North America, now and not lump in Europe, and and doing something right and up and then life because perspective, you had 18 and financing for at least the Oh eat and Uh Huh.

In that utilities, and that's easy for us.

Hi to sell at the manufacturing and that they love him and he vision and eat and hi Tech and relative.

But we expect this button and that continues on bank line that is strong and ER and we continue to see like the lack of success and stopped other balance.

Pravin Rao: From an attrition perspective, yes, the attrition has increased from 7%, 7.7% to 10%. This is from the backdrop of demand environment that we are seeing. It's likely that given strong demand across the board, this attrition could probably inch up for the next couple of quarters. As we have consistently said, historically we have had attritions around 13% to 15% at times, and we are comfortable with that trend. My sense is over the next few quarters, it could probably increase beyond 10%. We are fairly comfortable in dealing with the situation. In terms of hiring this year, from a freshers perspective, we will end up hiring about close to 17,000 people.

And Oh man [laughter] failure that bridge and that increase some items, but since then for and seven per cent per day.

And then just on the back up on demand and on and see and.

And it's likely that you and strong demand across the board that uptick and.

And just for the next couple of quarters.

And sales consistent with the historical.

Historically and acquisitions on that either.

And [laughter] from licensing for the next for buttons, it probably could be on and.

[laughter] adjusted.

Really they're comfortable and degenerative condition and.

And that in terms of for hiding.

Hi, this year and up from their fair share perspective, and we will end up in hiring a boat so stuff I mean things up and people are being for if I can be line in effect from anything in there. We are looking at about 30 for those and emphasize.

Pravin Rao: I'm talking about FY21. In FY22 in India, we are looking at about 24,000 campus hires. This number, you have to also keep in mind, one is of course part of it is to backfill potential hike in attrition. Also we have one of the record utilizations in this quarter, 86.3%, highest in our history. This is not a utilization we are comfortable with. We want to bring down utilization as well. Consequently you will see probably increase in hiring to bring down utilization to manageable levels.

And that is not low that also keep in mind the money's on close so our topic just back on.

And Sheila Hakan application, but also revenue on a bit and go to the slippage and can you just for fun.

And I asked him and his team.

And it's just not that your places and got them, but that was into on things on your Capex and [laughter].

And think like they receive from the system I think Indonesia, and they seemed tonight.

Thank you so much. The next question is from a GAAP.

Garima: Thank you so much. The next question is from K. Giri Prakash from The Hindu Business Line. He couldn't join us virtually, so I'm gonna read out his question. His question is for Salil. With physical activity across most economies and industries already reverting to pre-COVID baseline levels, there is a likelihood of reversion of traffic from digital to physical channels. Will that lead to a recalibration in IT spends?

[Company Representative] (Infosys): Thank you so much. The next question is from K. Giri Prakash from The Hindu Business Line. He couldn't join us virtually, so I'm gonna read out his question. His question is for Salil. With physical activity across most economies and industries already reverting to pre-COVID baseline levels, there is a likelihood of reversion of traffic from digital to physical channels. Will that lead to a recalibration in IT spends?

Hi, guys from the he doesn't that line grid in China and sound, let's say he's on whenever you back and question.

His question is focused on it.

[laughter] activity across most economies and Nazis aren't any of your emerging equal the baseline and it.

Here is an ideal for Duffy version on traffic on digital just as a good channel.

That leads to our economy creation and <unk> bank.

HM.

To that question.

Salil Parekh: To that question, thanks for that. The way we see it today is, large enterprises are building their technology infrastructure for a world which is both digital, and what we call the physical world. In doing that, they are really accelerating the way that they want to do all of their digital transformation. Take the example of cloud. Even when a large enterprise uses private cloud or distributed hybrid public-private cloud environments, the thinking is it will enable all of the digital activity, meaning their end customers using it digitally, remotely, their employees working remotely. But it will also support, of course, the world where people are much more connected and not only digital. My sense is that move, that change is progressing quite rapidly.

Hi, sorry for that and though leave you see it today he is a low.

Hi Tech enterprises on the meeting their technology infrastructure for local Overages on did you do.

And what would be for on the physical work.

In doing that and their baby and.

Absolutely amazing the leaders and wonder who on them that they use and transformation. The example of flow.

Moving to win a large enterprise users argument for home on distributed hybrid public private cloud environments. The thinking is it will enable on when did you do activities, meaning there and customers using it literally and walk you didn't have low he's looking and working but they will also for.

On cost of.

For the World, where people are much more connected and off when needed.

On my sense is bad news that James is progressing quite rapidly and on boss, you're looking for on the economies to come back and all the activity and the.

Salil Parekh: Of course, we are looking for all the economies to come back and all the activity and the physical connects to resume. That will still support the acceleration of the digital transformation journey.

Hi, physicists and connection to lose you, but that will still so for the acceleration on the digital transformation journey.

Thank you for asking that question on it.

Garima: Thank you for answering that question, Salil. Our next question is coming up from Swati Khandelwal from Moneycontrol. Swati, please unmute and go ahead. Hi. Swati, can you hear us? Okay, looks like there is a connection problem. We'll get back to her a little later. We can now move on to the next one, which is Megha Mandavia from The Economic Times, please.

[Company Representative] (Infosys): Thank you for answering that question, Salil. Our next question is coming up from Swati Khandelwal from Moneycontrol. Swati, please unmute and go ahead. Hi. Swati, can you hear us? Okay, looks like there is a connection problem. We'll get back to her a little later. We can now move on to the next one, which is Megha Mandavia from The Economic Times, please.

Our next question is coming up from SAPIEN, we'll see some money controlling lucky and you just go ahead.

Hi, Patrick and yet.

Okay and looks like and is that connections how can they get back to how to eat up.

We can now move on to the next average Richard income on down here can be kind of me. Thank you.

Hi, Thanks, [laughter] and my question.

Megha Mandavia: Hi. Thank you so much for taking my question. Firstly, I wanted to ask Mr. Parekh that three years ago, you had set a three-year plan for Infosys, you know, to stabilize it and to grow the company. When can we expect the next three-year plan for Infosys, and how will the COVID pandemic change or shape that plan? Secondly, I wanted to understand in terms of deals, what percentage of those deals are digital transformation deals. Thirdly, I wanted to understand that will rebadging continue as a part of your large deal win strategy, and how will it impact employee costs? Thank you.

Hi.

Hi, guys and two years ago, and let's see on line.

[laughter].

Hi, stabilizes and good day.

And then be [laughter] and home [laughter] and and we see.

And I see [laughter] on.

Hi, I'm wondering on <unk>.

Hi, good [laughter].

I feel really bad.

And.

And I hope your line.

Hi, Yes, and how we didn't come back into line.

And.

So let me stop for their first round.

Salil Parekh: Let me start with the first one. As you rightly said, we laid out a three-year roadmap. Our strategy really, which is focused on accelerating digital, focused on automation, making sure that the reskilling of our employees and now the reskilling of our client employees continues and localizing in all the markets that we operate in. That strategy is really gaining lots of traction over this past three years, and we continue to see that strategy working well for us. In terms of the roadmap, we can see the third year we had talked about acceleration. Of course, we had the COVID situation for a few quarters, which has come in the way of the full acceleration.

And there and as.

Hi, This is our key savvy and they now and see a door now on strategy really which is focused on x. and.

Greetings and you're just a focus on automation and making sure that at least getting on and why is it now at least feeling of our client voice and use and low realizing and and all the markets that loss provision that strategy is really gaining lots of traction on this off the U.S. and they've been.

And you need to see that strategy working well for us in terms of and road map or we can see this earlier goods and talked about acceleration of cost me on the overall situation for a few quarters zone, which is a comment.

Got it and the way off the for acceleration and we can see again today, the acceleration and Julie.

Salil Parekh: We can see again today the acceleration resuming with the type of large deals that we are seeing. We are already working on how we're gonna lay out the blocks, the roadmap for the next few years. From a strategic perspective, the focus on digital, the focus on cloud really remains as intense and as relevant for our clients today. The second point that Pravin will come back to in terms of large deals and rebadging. I'll just make one comment and then pass it on to Pravin. Yes, those are part of what we do when we have large partnerships with clients. It also is the way that some elements of our localization builds out. Because the way we are building the pyramid in all of our geographies, it helps us as we're constructing some of these large deals.

Hi, so Nazis and BSG.

We are already working on how we are going to see how those losses. The road map for the next few years, but from a strategic perspective, who focus on digital and the focus on now it and then as intense and and none of them for our clients.

The second for the result on back to last.

Lastly, on who's going to be back on this big Black comments and fast.

And yes, it was the worst on.

Okay, and what do you have I hopped on ships with clients.

It also is they'll be April and some elements of our localized interest is out and there goes the way building and it is.

And on the other piece and it helps us and we've been disrupted some of these oh.

Salil Parekh: With that, Pravin, over to you.

With that I mean.

Salil Parekh: With that, Pravin, over to you.

Hi.

Pravin Rao: Yeah. See, when you look at large deals, it's not only about taking over the client, IT assets and operations, but it's also about transforming the landscape. There is an element of transformation in every large deal. From that perspective, there's an element of digital in every large deal. We don't really, at least in my mind, we have not really published what is the percentage of digital. Overall, the fact that our digital is growing, and much faster than the rest of the services, and this quarter it was 31%+, and today it's about 50% of the revenue, and it continues to grow. It's a clear reflection that a significant part of the growth is coming from large deal wins, and a significant percentage of large deal wins is digital.

Yeah.

And when you look at lot and David it's not on live or they can go up there and the idea that and operation, but it's also about forming the landscape. So there is an element of transformation and every last day. So from that perspective. There is an element of digital and every line. So we don't really ER business for them I know.

Yeah, not really for this morning, and say that we did that for the oil and the fact that our digital life is growing and on a much lost and then and now as somebody said they said and that is critical I think on a glance and good day.

And here and it continues to grow it's a day, it's a clear reflection that a significant part of the growth is coming from not dealing and significant.

Liabilities.

Thank you for much.

Garima: Thank you so much. We'll now move on to the next question coming from Saritha Rai. Hi, Saritha. Please unmute and go ahead.

[Company Representative] (Infosys): Thank you so much. We'll now move on to the next question coming from Saritha Rai. Hi, Saritha. Please unmute and go ahead.

Hi, I'm onto the next question is coming from a site that I [laughter].

Oh, Hi, happy that didn't go ahead.

[laughter] so.

Saritha Rai: Hi. Hello, gentlemen. So, it looks like it's a really good moment for India's IT services industry. Large deal wins, billion-dollar deals, best ever order pipeline, return to double-digit growth. Somebody described it as a renaissance moment for India's IT services industry. Salil, I'd like to ask you, what would you say about the industry itself, and how would you describe, you know, Infosys' outlook vis-à-vis the pandemic and what it's done for Infosys? For Pravin, I have a question. You've talked about hiring thousands of employees in FY22, but there's also a hybridization of work going on at the same time. Infosys does have a large real estate bank. You know, you have large assets.

Oh, maybe a good momentum slowing down on this does not see losses on he is doing a billion dollar on <unk> best ever and on the top line returns and how does it feel for how many described it as a a nice on moments for him. He has on services not.

The I mean I'd also like to ask you what would you say on hotspot industry itself and.

Hi, Steve Hi.

Net income this is oh, no I'm not the study on timing and wanted to them.

And for our company I have a question you talked about no hiding Uh huh.

All this money and 522.

Hi, Who's on these you know mark I'm going on and the team on Oh [laughter].

[laughter], Dr. How on losses, the state Oh, the on you have locked [laughter] any you know it's an attempt to last in line are you on this.

Saritha Rai: Is there any, you know, sort of attempt to rationalize, your real estate, assets?

Hi, Steve Uh Huh.

Saritha Rai: Pravin, those are my questions. Thank you, Garima.

Oh, sorry on those.

Hi for instance.

Hi.

Hi, Thanks for that question there was question and I think.

Salil Parekh: Thanks. Thanks for that question, those questions. I think, in terms of how we see the tech industry, there's really a secular trend in the way large enterprises are looking at how they need to use technology. Technology has gone from being simply a method to improve process or make things efficient to drive growth for their businesses. A lot of that is through their own digital connect with their end customer. From our perspective, we see that as a positive outlook for the industry. What we think happened in the COVID duration and obviously still going on, as the vaccines are getting rolled out, was initially there was a huge impact across all the Western economies.

In terms of how we see the on deck and industry.

Hi, This is really a secular change in the way and large enterprises are looking at how they need to use technology.

There's always gone from being simply and methods to improve thought process on day and efficient to drive gross for their businesses and I love that ensue dashboards and you just for that in the and customer so from our perspective, we see that as well.

They do Oh, no oh for industry and.

What we think are happening in the so called is EUR degradation and obviously these things going on I I.

The vaccines and getting rolled out loans are initially or there was a huge impact across all the western economies and then on several large enterprises stop and do absolutely on how they can connect the busy with.

Salil Parekh: Several large enterprises started to accelerate on how they can connect digitally with their end customers. Given our capabilities and skill sets, we got to participate in many of those digital journeys, which is what has really helped us. With that, let me pass it to Pravin for the real estate part.

With that customers and.

And when I came to the movies and skill sets a week or two pockets in net.

And digital journeys, and which is which is largely and.

And with that let me pass on to study for the years to.

Pravin Rao: Yes. See, as we have been saying, while today it's significantly work from home, in the future it will be a hybrid model with flexibility to work from home and work from office. At this stage, it's very difficult to have a handle on what percentage of people will daily work from home and work from office, whether we can have a totaling kind of concept within the office, where clients will be open to that. There are a lot of unanswered questions, so we'll have to wait and watch from a real estate rationalization perspective. What we have done, though, is, wherever we have had offices on rent or lease, we are trying to see if we can get out. Wherever it's coming up for renewal, we are not renewing it.

Yeah.

They are and they have been saying a two day significantly work from home.

And the food sales you'd be a hybrid from order it flexibility to work from home and work from Opus.

But at this stage, it's very difficult. So hi, there had been on what they go and what percentage of people on the daily both come on because both from a base.

Base, but Eric and have a blink and up on such that the mill is.

And so they go on for that so that's that load up on them set for us and.

For example, wait and watch the upcoming elicit rationalization perspective.

What we have done though is they don't agree on that that will pick up on the income is there and the.

And and.

Hi, it's coming up for the year.

And not renewing it and they're all those Florida on on it for a second expansion.

Pravin Rao: We have also slowed down on infrastructure expansion. Anything more to do from a radical plan perspective, we have to wait for the new normal and get a sense of how it will look like before we can take any concrete steps.

Anything more to do a fanatical ER and perspective.

Hi delayed for the non <unk>.

And so on like everybody thinks it can be from this.

Hi.

Thank you so much and.

Garima: Thank you so much. Let's take the next question. It's coming from Rukmini Rao from Business Today, please. Hi, Rukmini. Please unmute yourself and go ahead.

[Company Representative] (Infosys): Thank you so much. Let's take the next question. It's coming from Rukmini Rao from Business Today, please. Hi, Rukmini. Please unmute yourself and go ahead.

Let's take the next question.

It's coming from a company now on business today.

Hi Tech many of these and you just doesn't go ahead, thank God and not I hope I can each from the capacity Gan on Silicon Valley and congratulations on the gross number.

Rukmini Rao: Thanks, Garima. I have a question each for Mr. Parekh and also Mr. Rao. Congratulations on the great set of numbers. But Salil, given that, now digital revenues are over 50% of your overall revenues, would it be possible for us to give a sense of, you know, the spread out of these digital deals vis-à-vis your, business verticals? And also, the repeat business, if you're looking at it has come down to about 95%. So how do we read this? Are the newer deals of a shorter tenure or is this an indication of the larger base of, for which this has come down? I think we can go ahead with these two questions and then I'll ask, Pravin the next question. Thank you.

And then given that no digital revenues are all 50% off the overall revenue we call. It look for us to give a sense of you know the split out on these get you to deal with and that is this what because and also or does it beep business, if you're looking at it and it's come down to about 95% of how lead EBIT are then you would be.

Oh for shorter than yours or is that an indication for larger base off of which this has come down and and also on.

Oh yeah.

I think we can go ahead with these two question and then Alaska and in the next question. Thank you.

Okay.

Salil Parekh: Okay. I think the way we see the digital growth, we are extremely delighted first that it's crossed over 50%. It really shows that the transformation that we had launched is giving us strong results and benefits. We are not, as you've seen from what we've announced, splitting that across the various industries or segments. We also at this stage externally are not breaking it up into the various components of digital. We are extremely delighted that that growth of digital is very strong and it's crossed over the 50% path at this stage. Please go ahead with the other questions, Rukmini.

I think the way, we see or did you do gross extremely delighted.

Net interest crossed over 50% and really show what was that for transformation and yet and launch is giving us strong dissolved and benefits and we are not a and you see from what people balance a sleeping bag across the various industries all segments and the on site.

This data externally and not breaking it up and you do that is still on means outages and we are extremely delighted and that growth of digital and strong and its cross over the 50% pop at this stage.

He's going on with the other questions for for.

Oh, Hi, also somebody a sense on that and the P.D. and how do we read into that.

Rukmini Rao: Sir, also, some bit of sense on that, repeat deals. How do we read into that?

Salil Parekh: On the repeat deals, I think we see the way that our business is constructed. A lot of the work that we do is work that clients work with us on an ongoing basis. Sometimes when we see more and more of the digital work, even though those projects have a 3-year, 5-year, or 1-year duration, we see that once we are working with clients, whether it's on their cloud journey or the data analytics work, we continue to be working with them for a long period of time.

On the beach season, I think we see a little bit of that out and this is constructed and.

Auto loans that we do is work that clients are.

With us on an armed with interest so sometimes when we see more and more on the digital work and even though those projects are on the CEO OPI deal or 102, which we see the and watch your working what drives residence on their cloud journey on the day that and just for you.

And you need to be working with them for loans.

Yeah I.

Rukmini Rao: Sure. Sir, also wanted to get a sense of, you know, the onshore-offshore mix, given that we're seeing a strong offshore, the mix coming close to about 75%. Is this going to be a model going forward as well or is this a pandemic-driven kind of phenomena? Thank you.

I also wanted to get us and so far into the on show at all Thanks and makes up given that we've seen a.

Hi, stalled out on offshore and yes that makes coming close to about 75% is this going to be more troubling for what is that on is that up and if they do then kind of sit on and thank you.

Are there and what we've seen is a little last night and bonds with or who is the choppiness and white significantly restricted and so in many ways is not sales people to work on onshore having said that they are moving because the bulk of that issue.

Salil Parekh: What we've seen is, over the last 9 months with COVID, the travel has been quite significantly restricted. In many ways, we've not sent people to work onshore. Having said that, we are recruiting because of our localization approach, still quite a bit onshore as well. What our large enterprise clients have observed is given that, 97% of all of our employees are working remotely or working from home, they are more open to having all of the work being done in different locations. Hence we see that movement on the on-site, offshore mix. Of course, as the travel opens up, some of that will go back to where it was. As a secular trend, we think the on-site mix will continue to be more and more efficient.

Hi, still quite a bit oh.

Hi offshore is that.

We're also on large enterprise clients are also.

So its given that 97% of all about employees are working and walk for your working from home and there are more open you have and all that work being done in different locations and hence machine that went on day onsite offshore mix on costs as a child.

Moving up some of that will go back and where it was but as a secular change within the on site. If you consider to be more and more.

Thank you for answering those questions and selling even now moving onto the next question, it's Tom and his past five net China and.

Garima: Thank you for answering those questions, Salil. We will now move on to the next question. It's from Shilpa Phadnis from The Times of India. Hi, Shilpa. Please go ahead.

[Company Representative] (Infosys): Thank you for answering those questions, Salil. We will now move on to the next question. It's from Shilpa Phadnis from The Times of India. Hi, Shilpa. Please go ahead.

[laughter].

Shilpa Phadnis: Hi. Thank you. Many congratulations on a good set of numbers. Infosys has turbocharged its large deal presence. What has changed in the structure and the go-to-market of the large deal teams? Do you see larger opportunities emerging from vendor consolidation and capital carve-out deals? Third, it appears that, you know, Infosys is operating on a two-engine proposition. One at 24%. With large deals, you see very slim margins. Going forward, you have your wage hikes. Travel will slowly pick up, and other cost overheads, including the seasonalities of ramp-ups and ramp-downs in large deals. Do you think margins at 24 odd percent is sustainable going forward?

[laughter], how much watch and see I actually president and.

Hi, James your structure and to go to.

Okay, simple actually eating easy larger opportunities emerging from bank consolidation and GAAP.

Hi.

It appears that you know and losses.

Hi, breathing room to change and proposition and why.

Net interest rates and to make life easier you see very slim margin.

Hi, Paul when you have the on wage hikes.

Hi, travel will flow you pick up and other cost all and including the Seasonalities and ramp ups and downs in line Sheila.

On March 24% and sustainable going forward.

Oh Im sorry.

Salil Parekh: Let me start with the large deal structure, and then on the margins, Nilanjan will add some color. On the large deal structure, we've shared this in the past. We've put in place this structure two or three years ago, where there's tremendous attention and focus to what clients' needs are. We bring all of the capabilities of Infosys together when we work on those requirements. There's also a real attention to what is the method that specific client wants to engage with us on, and what is the best set of solutions from within our capabilities, and sometimes with partners, that we can develop. That's the structure that's been in place for some time.

Interest Doctor and on.

Hi, My hint.

And I'm just glad from Hello.

Oh, the lobby profit no.

No we didn't share this and the file or we put in place and this structure or two or three years and go away and there is a tremendous attention and focus and to our clients needs are and these name all of the pieces. It is used for infosys together when we work on those.

Average, there's also a real attention to what is the matter. That's for sure. This line wants to engage with alcohol and what is the best sales institutions within our capability and sometimes with partners and we think about it and that's the structure and has been this is how close on that.

And as you know we put in a significant investment.

Salil Parekh: As you know, we put in a significant investment, about 3 years ago into building out that structure and sales capabilities. Fortunately, all of that over the last couple of years has given us good traction, in the way that the large deals have come through. On the margin, I'll pass it on to Nilanjan.

About three years and want to do their thing on that structure and sales capabilities and.

Fortunately all that over the last couple of years and given us on traction and the me losses have come through.

On the margin and losses on a question on the line.

And today.

Nilanjan Roy: Today. Sorry, I think I was on mute. Okay. On the margins, as you know, we are on a year-to-date basis, 24.5%. On a year-on-year for the quarter, we are by about 350 basis points. This is, like I said, three reasons: the way we looked at the cost structure at the beginning of the year, the discretionary costs, which were around our payroll costs, around compensation hikes, around promotions, then of course, the cost cuts which we had done on travel, which we had done on our professional legal, on facilities, and of course, finally, our strategic cost levers, which we believe are the long-term margin improvement drivers around off-site or on-site, offshore, the pyramid, automation, et cetera.

Sorry, I think I was on mute, okay, and so on the margin that you know we are on a year to date basis, 24.5% and on a year on year for the quarter free up by about 250 basis points and.

And this is like I said TV is moving the way we looked at the cost structure at the beginning of the year the discretionary costs for which were around on payroll costs. It on compensation hikes are on promotions.

And of course, the cost cuts, which we have done on travel for which we had done on our professional legal on facilities and of course finally, our strategic Arqiva, which we believe are the long term margin improvement drivers around oxide on sorry on site offshore the fed him and automation et cetera, So and we look into next year in order for yes, we will have the impact on wages.

Nilanjan Roy: As we look into next year in Q4, yes, we will have the impact of wages coming in from Q4. During the rest of the year, there may be some travel impact as the, you know, vaccines are rolled out across. Parallelly, we've seen that in this year as well. We've been able to deploy all our cost optimization levers quite aggressively during this time as well. Without giving a number on the guidance, I think we are quite confident that we have these cost optimization plans in place to negate some of the costs which we will see coming up.

Coming in from for the fall.

And during the rest of and a yacht.

Hi, there may be some traveling back as the Oh vaccines that rolled out across but I really we've seen that and this year I've ever been able to deploy all on cost optimization lever quite aggressively during this time as well.

So without giving a number on the guidance I think we are quite confident.

That we have these cost optimization plans in place when they get from other costs, which you don't see coming on.

Thank you from us.

Garima: Thank you so much. We'll take the next question now. It's coming from Sankalp from Reuters. Hi, Sankalp. Please go ahead. Sankalp, you're on mute. Could you please unmute first? Sankalp, in case you're not able to hear us, the next question now coming from Sankalp from Reuters. Hi, Sankalp. Please go ahead.

[Company Representative] (Infosys): Thank you so much. We'll take the next question now. It's coming from Sankalp from Reuters. Hi, Sankalp. Please go ahead. Sankalp, you're on mute. Could you please unmute first? Sankalp, in case you're not able to hear us, the next question now coming from Sankalp from Reuters. Hi, Sankalp. Please go ahead.

Let's take the next question is coming from sounds that sounds like that.

Hi can I. Please go ahead.

[laughter] you're on your liquidity then that.

And that is that and if you are not going to get your net.

Let's turn now [laughter].

[laughter] right, Hi, Hi, good evening everyone.

Sankalp: Hi. Hi. Good evening, everyone. I had,

Sankalp Phartiyal: Hi. Hi. Good evening, everyone. I had,

I had a [laughter] your line.

Garima: Sankalp, you're on mute. Could you please unmute first?

[Company Representative] (Infosys): Sankalp, you're on mute. Could you please unmute first?

And then.

Well actually I'm on muted.

Sankalp: Oh, actually I'm unmuted.

Sankalp Phartiyal: Oh, actually I'm unmuted.

Yeah, and I think I'd be a grant Hello can you hear me.

Garima: We can hear you now, Sankalp. Please go ahead.

[Company Representative] (Infosys): We can hear you now, Sankalp. Please go ahead.

Sankalp: Hello. Can you hear me?

Sankalp Phartiyal: Hello. Can you hear me?

Yes, yes, but well.

Salil Parekh: Yes. Yes. Go ahead.

Sankalp: Hello.

Sankalp Phartiyal: Hello.

And you can hear your bread.

Salil Parekh: Yeah, we can hear you. Go ahead.

Can you hear me, yet and again as you can.

Sankalp: Can you hear me?

Sankalp Phartiyal: Can you hear me?

Garima: Yes, we can.

[Company Representative] (Infosys): Yes, we can.

Salil Parekh: Yes.

Garima: Sankalp, we can hear you. Please go ahead.

[Company Representative] (Infosys): Sankalp, we can hear you. Please go ahead.

I hear you. Please go ahead.

And that's.

Sankalp: Hello. Can you hear me?

Hello can you hear me.

Sankalp Phartiyal: Hello. Can you hear me?

Hi.

Salil Parekh: Can't hear him.

These are trying to get back and sometimes I think on it.

Garima: We will try to get back to Sankalp, I think, a little later. He's having some audio-video issues.

[Company Representative] (Infosys): We will try to get back to Sankalp, I think, a little later. He's having some audio-video issues.

We believe that you have and kind of I didn't get it [laughter] okay.

Sankalp: Okay.

Sankalp Phartiyal: Okay.

Garima: We can hear you. Please go ahead.

[Company Representative] (Infosys): We can hear you. Please go ahead.

Okay, great. So.

Sankalp: Okay, great. I was saying that, good evening. You know, Salil, you and Pravin have said that-

Sankalp Phartiyal: Okay, great. I was saying that, good evening. You know, Salil, you and Pravin have said that-

So I was saying that good evening and up.

And how do you and probably and have said that.

Garima: Can you hear me?

[Company Representative] (Infosys): Can you hear me?

So you you and probably enough said that the gross is a broad based across verticals I want to go off going ahead on.

Sankalp: You and Praveen have said that the growth is broad-based across verticals. I wanted to ask that going ahead this year, what are the business verticals where you see the most growth coming in? Because surely every industry will have different demands according to the pandemic. Some businesses will take faster to recover. While others may not take the same time. Which industries do you think are the ones that will spend more money in terms of the transformation that you talk about? That's one. The second thing I wanted to ask was about, you know, the visa thing. Now, with the new administration coming in the US.

Sankalp Phartiyal: You and Praveen have said that the growth is broad-based across verticals. I wanted to ask that going ahead this year, what are the business verticals where you see the most growth coming in? Because surely every industry will have different demands according to the pandemic. Some businesses will take faster to recover. While others may not take the same time. Which industries do you think are the ones that will spend more money in terms of the transformation that you talk about? That's one. The second thing I wanted to ask was about, you know, the visa thing. Now, with the new administration coming in the US.

This year, what are the verticals or what our you know what other business verticals, where you see the most growth coming in because surely every industry will have different demands. According to the pandemic. Some businesses will take foster to recover while others may not be the same time, so which industries you think.

On the one that.

And more money in terms of the transformation that you talk about that's one the second thing I wanted to ask was about and.

On the visa thing now with the New administration coming into you and and you're on hybrid models off sort of having people work from home as well as on site I wanted to know how much of these you know visas for you keep applying for not in terms of the quantity I mean, you've already reduce that but I mean, how.

Salil Parekh: Mm-hmm.

Sankalp: Your own hybrid model of sort of having people work from home as well as on-site, I wanted to know how much of these, you know, visas will you keep applying for? Not in terms of the quantity, I mean, you've already reduced that. I mean, how important it is to send those many engineers or developers to the US now, given both the new administration and the work from home culture. Third, I just wanted, you know, Pravin to sort of just reiterate those hiring numbers in terms of the fresh campus placements for both this year and the next that he spoke about. I missed those. Thank you.

Sankalp Phartiyal: Your own hybrid model of sort of having people work from home as well as on-site, I wanted to know how much of these, you know, visas will you keep applying for? Not in terms of the quantity, I mean, you've already reduced that. I mean, how important it is to send those many engineers or developers to the US now, given both the new administration and the work from home culture. Third, I just wanted, you know, Pravin to sort of just reiterate those hiring numbers in terms of the fresh campus placements for both this year and the next that he spoke about. I missed those. Thank you.

Important it is to send those many engineers our developers to the U.S. now.

Given both the new administration and the work from home culture and number three I. Just wanted to have you know probably into sort of just reiterate those are hiring numbers in terms of the fresh campus placements for both this year and the next that he spoke about I missed those thank you.

And let me start off on the industry.

Salil Parekh: Thanks. Let me start off on the industry.

Sankalp: Even both the new administration and the work from home culture. Number three, I just wanted, you know, Pravin to reiterate those, in terms of the fresh-

Sankalp Phartiyal: Even both the new administration and the work from home culture. Number three, I just wanted, you know, Pravin to reiterate those, in terms of the fresh-

[laughter].

Hi.

Yeah and to quantify.

[laughter] between those.

Hi.

Oh.

Salil Parekh: Okay. Let me start off maybe on the industry question that you asked, and Pravin will provide some more color and then the other points as well on visa and hiring numbers. What we are seeing, as you pointed out, was a broad-based growth across many industries. Now, the digital transformation work, the cloud movement, the work with data analytics is happening across all different industries. We've seen, as you know, in this Q3, a tremendous growth in our financial services business, which really is the largest industry vertical for us, and that bodes well for what we see in the future. We've also seen and shared some of the large deals and new partnerships across many different industry segments.

Let's let me start off maybe on.

The industry Oh question that you asked and so they really are and provide some more color and then the other points is low on these items and hiring numbers.

Well, what we are seeing a and.

As you pointed out and as a broad based growth.

Good day across many industries now on the digital transformation work on the cloud and managed to work with data analytics is happening across all the different industries are you seeing there as you know and does this do you see a tremendous growth in our financials.

Hi. This is business is really on the largest industry vertical for us and that bodes well for what we see in the future and we've also seen and shed some on the large deals and new partnerships across many different industry segments, and so you still see this and being a broad based.

Salil Parekh: We still see this as being a broad-based growth dynamic across different industries. With that, let me pass it on to Pravin.

Our gross dynamic across different industry.

And then let me pass it off the study yeah.

Pravin Rao: Yeah. Just to add a little bit more color from an industry perspective, we feel a lot more optimistic about banking and financial services on the back of a lot of large deal wins. I earlier talked about manufacturing. Again, it had a fantastic quarter this quarter in terms of large deal wins as well as growth. That momentum is likely to continue for the next few quarters. Retail, we have seen a second quarter in a row of sequential growth. It has also on a year-on-year basis just turned positive. Hopefully, we'll continue to see that traction. From a communications perspective on the telecom side, we feel optimistic. We are seeing some growth.

Yeah.

Hi, just to add a little bit more color or from an industry perspective, we feel a lot more optimistic about banking and financial services.

On the back of a lot of life the limits are and.

You have talked about manufacturing are getting better and that's the quarter this or this quarter and best of luck building up for that.

And that momentum is likely to continue and excuse for EPS.

Okay, and we have seen a and again for doing that on a big.

Exponential growth and with that.

On on the on on the business and.

And so hopefully area and you can see the action.

From a communication and the perspective on the telecom side, though is optimistic that space and.

But on the media and entertainment say that these businesses and so yes.

Pravin Rao: On the Media and Entertainment side, we still see some softness. On the industrial segment, on Utilities side, we are optimistic. We are seeing traction. We are also seeing some good growth in oil and gas, even though the sector is a little bit depressed. We see continued challenges in the Resources segment and in the services segment. Of course, Life Sciences and Healthcare is also, I mean, given the pandemic and a lot of focus on health, we are optimistic about that segment. By and large, as I said earlier, it's a broad-based thing. There are some sub-segments where we will see some softness, but it's really compensated by growth in other segments.

On the chipset and then.

On the utility side that interest.

And let's take the thing that actually and.

We're also seeing a statistics and a good growth and oil and gas and though.

Sandy, but that's all right and we do those fees and their continued relative thing and so indeed, it puts us at night and day.

Moving to segment.

And of course, a life same stuff and and status on so I mean, given depending on me and a lot of focus on his day, if and the optimistic about and settlement so bad luck.

Hi, There said on here that said there are there things from some segments of every day and I'm softness, but Ah Ah, but it's fairly compensated by the segments now on the lease.

Pravin Rao: Now on the visa front, as we said earlier, today we are fully de-risked from the visa because of our localization strategy. We are less dependent on any visa rule changes or anything of the regime. But with that, when you are looking at the supply chain, you have to prepare yourself for multiple options. One element of supply chain when you have to fulfill on-site, one of the things is fulfilling through local hires, fulfilling through experienced hires locally. But one element of it is also fulfilling through sending people from India. Because at the end of the day, it's all about talent. From that perspective, there'll always be some part of the work that has to be done on-site closer to the client.

And so and style.

And yeah, we said earlier today, we added a little weighted somebody said because on for Localizations that Oh.

Yeah, and a less dependent on line and.

On the studies are line.

Good.

And then that's when you're looking at a place in the U.S. and part.

And Mike and options on one element of Salt Lake and when you have to spend on site and the thing is that the Billy goat, Hi, Lena proceeding through experienced price locally and one element of physical books and billing and the people from India and of the day, it's all about and then.

And so from that perspective, and all there'll be some part of the work that has to be done on sales decline.

And we already have somebody makes up on site and ER and on the on site on any and I guess just little bit hi.

Pravin Rao: We'll always have some element of on-site. On the on-site, I mean, you can either fulfill with people whom you hire locally or by sending from India. Irrespective of the challenges, we want to be prepared, fully prepared so that, given the nature of demand, we have all options available for us to fulfill that. I think those are the two things. On the hiring numbers, okay, that was the third question. In terms of pressures, in India next year, we are looking at hiring about 24,000 people.

Hi, locally on average.

Yeah.

And I get it but they will depend and but we want to be prepared for me. There. So that you and and they put up demand that you have all options available for us.

And.

And then go to the two things the and underwriting the bus Belk and and others that question.

In terms of excess cash in India and next year that we are looking at hiring about like yourself and.

Thank you so much from is on 10 times and men. We now move on to the next question is coming from I guess my my luck on names ice Mackie and going after and a.

Garima: Thank you so much for those answers. Gentlemen, we'll now move on to the next question. It's coming from Ayushman Baruah from Mint. Ayushman, please go ahead after you've unmuted.

[Company Representative] (Infosys): Thank you so much for those answers. Gentlemen, we'll now move on to the next question. It's coming from Ayushman Baruah from Mint. Ayushman, please go ahead after you've unmuted.

Ayushman Baruah: Hey. Hi. Wishing you a happy new year to all of you. My question is for Salil. How much of these new deal wins are from market share gains versus your customers moving to the cloud pattern? Second is, do you see any competition from the global in-house centers or the GICs? Because they also have big plans to come to India. Thank you.

Hi, a low wishing you a happy new year to all of you. So my question is for salad or how much of these new easily and.

Hi from market share gains versus your customers moving to the cloud for them and second is do you see any competition.

From the global in house centers for the D. I see because a they are also have because they also have big plans to come from India. Thank you.

Hi, there.

Salil Parekh: What we see is both a market share gain and also cloud work. What I mean is, we think that with the growth that we've seen over the last few quarters, which has been quite leading within the industry, and some of these wins that we are continuing to see, we will gain more and more market share. And then a lot of the work that we are doing, we described some of it at this time, is focused on the cloud. It's focused on building solutions which are SaaS based, infra as a service based, private cloud based, leveraging our Infosys Cobalt capability, and getting that tremendous traction for that very early on. Sorry, what was the second point that you'd asked about?

What we see is both a market share game and also child, well and the news.

We think that with the growth that we've seen over the last few quarters, which is being quite a leading and within the industry and some of these wins and we are continuing to see a we will gain more and more market share and and then a lot on the work that we're doing.

Hi strikes on the bridge of his time is focus on the cloud is focused on building solutions, which are being used or enterprise.

Enterprise and service is a private cloud is leveraging our infosys marketability and getting that tremendous traction for that and he's already.

Oh, the other I'm sorry, what was the second and second one that you asked about second was the competition from the Jaycees, Yeah, just there and what you're seeing is or isn't always sort of oh and different fees is all building out a g. I see it.

Pravin Rao: Second was the competition from the GICs.

Ayushman Baruah: Second was the competition from the GICs.

Salil Parekh: Yeah. What we are seeing is, there's always a sort of different phases of building out a GIC. In many cases, we partner very actively working with GICs, especially as there are new ones being built on new technologies or skills being developed and scaled up. In some instances, we also work where there is a move by large enterprises to move out of some of the GICs and into a new area where we've taken work which is jointly developing with the GIC. It's both working jointly with them or sometimes as large enterprises make decisions to move out of them to take them over and then to transform them. Both of those sorts of activities are happening with our work with GIC.

Many cases, we partner very actively working with GE I see especially and then on you want you can do on new technologies low students being developed and scale in some instances. We also work where there is a move by and large enterprises.

Moving out of some of the GE and she's and into a new area, where they can.

Well it just jointly developing with this he has to its board.

Working jointly with them on sometimes and large enterprises make decisions and move out of them a day from mobile and have to transform it and both of those also act and the seasonality and with.

With our work with GNC.

Thank you.

Ayushman Baruah: Thank you.

Hi.

Hi, Thank you so much let's take the next question now it's kind of try and make it that they like from Cogen and he could not be go ahead.

Garima: Thank you so much. Let's take the next question now. It's coming from Nikita Periwal from Cogencis. Hi, Nikita. Please go ahead.

[Company Representative] (Infosys): Thank you so much. Let's take the next question now. It's coming from Nikita Periwal from Cogencis. Hi, Nikita. Please go ahead.

Nikita Periwal: Hi. Good evening. I noticed that a lot of your deal wins in this quarter are concentrated in the US, and growth in Europe has been relatively lower as compared to the overall growth and particularly in the US. In that context, I want to understand, get an outlook for the European region, especially for the retail and the financial services verticals. Second is, your deal wins have been at an all-time high in this quarter and the previous. Can we expect a repeat in Q4 as well?

Hi, Good day.

And so I noticed that the losses for the invented this quarter, that's gone from say, they didnt and do it and.

And go off and other testing and then it gives me the one absent that and the overall gross and Patrick and I mean, they do and so.

And that's contact for one to understand the outlook for the other countries and especially for the details on the financial services on that.

And there's a you're being from campaign and the all time high and this one is kind of what that and see this.

Hi, can we expect and if they didnt know much quarter that day.

I'll start with the SEC and while that actually from and you know a lot more meat on the first first question and that you are now.

Salil Parekh: I'll start with the second one. Actually, Pravin will have a lot more views on the first question that you asked. Will the next quarter be equally as large as this one or the previous one? Our attempt is to really work even more closely with our clients in their large transformation programs. As we've said sometimes in the past, these are not predictable when some of these things happen. We've been very good with really tremendous amount of these partnership wins over the last two quarters. If you take a more annual view, we feel very strongly that that sort of a traction will continue. Quarter to quarter, sometimes things will be more up and down in terms of large deal values.

Ladies.

Ladies and export doesn't he are equally as large and and smile is flat on a dentist to really work even more closely with our clients and their large transformation programs I think you said.

And the boss these on off predictive me rents on hobbies and not but are these being very good business.

We are tremendous amount, though these partnership wins over the last two quarters is your big and small and you view these things very strongly and that sort of attraction will continue but its mortgage would want and sometimes they will need more up and down it sounds so large E.

Values throughout most of the civic and comment on the Bosh for diversity on overall very positive and optimistic about the pipeline and the outlook.

Salil Parekh: I have no specific comment on the March quarter, but we are overall very positive and optimistic about the pipeline and the outlook. Pravin on the European side and the other side.

Uh huh.

Hi, inside and the others.

Hi.

I think and the last couple of quarters or the number of liabilities and it had been hiring you EPS than anywhere else.

Pravin Rao: I think in the last couple of quarters, the number of large deal wins have been higher in US than in Europe. However, it's not a secular trend. In fact, in this quarter, if you look at it, one of the largest deal wins in Infosys was in Europe, from that perspective. We expect the momentum from Europe to continue as well. For instance, if you look at the BFSI segment, some of the spend has come back much more aggressively in US banks than in European banks. Again, it's a matter of time before we expect spend to come back in Europe as well. I would not call it as a secular trend.

Hi, good it's a lot of secular trends in fact that index bought it for depended on the not just the person's day one thing for us.

Oh, yes.

The momentum from Europe and gain on sale.

And for instance, if.

For the cut back, yes, I say something like.

The longest and that's coming back them up more and that's again and I see that banks and the European banks again, [laughter] and for that.

Hi, guys in Europe, and so not all interest 11, and the last couple of other staffing for them up and what actually.

Pravin Rao: In the last couple of quarters, we have seen probably much more traction in Americas. We do expect traction to pick up in Europe as well going forward.

And Oh.

And we really expect that.

Actually the pickup in Europe and.

Hi.

And just so much and our next question now and Tom Your share and then don't come from if you try and hi. This is on you didn't go ahead.

Garima: Thank you so much. Our next question now is from Jochelle Mendonca from ET Prime. Hi, Jochelle, please unmute and go ahead.

[Company Representative] (Infosys): Thank you so much. Our next question now is from Jochelle Mendonca from ET Prime. Hi, Jochelle, please unmute and go ahead.

Hi, Thank you so much for taking my questions I just have two we.

Jochelle Mendonca [Senior Assistant Editor: Sir, thank you so much for taking my questions. I just have two. We are seeing across the industry really low attrition, and as you said, uncomfortably high utilization. Are you concerned about supply constraints as demand continues to increase? Do you foresee any kind of war on talent? If yes, are you taking steps to mitigate that? My second question is, as you talked about building the pyramid on site in the local markets, how are you looking at creating career progression for those employees? We have heard some IT companies talk about focusing on national diversity, you know, in client-facing roles. Is Infosys looking at any metric like that? Thank you.

Jochelle Mendonca: Sir, thank you so much for taking my questions. I just have two. We are seeing across the industry really low attrition, and as you said, uncomfortably high utilization. Are you concerned about supply constraints as demand continues to increase? Do you foresee any kind of war on talent? If yes, are you taking steps to mitigate that? My second question is, as you talked about building the pyramid on site in the local markets, how are you looking at creating career progression for those employees? We have heard some IT companies talk about focusing on national diversity, you know, in client-facing roles. Is Infosys looking at any metric like that? Thank you.

We have seen across the sector across the industry and I didn't know attrition and that's just sit uncomfortably high utilization are you concerned about supply constraints and demand continues to increase do you foresee any kind of going on today and if yes are you taking steps to mitigate and my second question is and you talked about building for the mid on for.

Hi in the local market.

Looking at creating cut and progression for those employees. We have current somebody companies talk about focusing on national diversity.

You know in time for this includes the.

The interest is looking at any metric like that thank you.

Hi question on leading to a addressed on those claims that for me. Please.

Salil Parekh: I'll request Pravin to address those points. Pravin, please go ahead.

Pravin Rao: Yeah. From a career progression perspective, we are obviously creating a lot of specialist roles, given the nature of demand that we are seeing and how the industry itself, I think, is much more hierarchical. Today, I think we are a much flatter organization, a lot more new roles and other things. In fact, from our own perspective, over a period of time, we have reskilled. While digital has grown from 25% of our business three years back to more than 50%, more than 80% of the talent required for fulfilling the digital needs has been done through reskilling and retaining our own people.

And say on the atomic their progress and perspective, and then I can point to.

But we are obviously.

Obviously getting a lot of specialist for them so.

Given day, and they settle or demand on the updating and no need to see and stuff that gets and.

Yeah for much more beta because they can go out and look more flatter organization and off more.

And in fact from our own perspective, though.

And what a third of and might there be scale.

And I know you didn't tell us going from 25% up on the effect of about 50.

For the person.

More than 80% of the LNG and right.

And filling that digital needs and bring them to escalating and.

Depending on what it would be from that.

Pravin Rao: From that perspective, there is a lot of opportunities for people to get into newer careers, become future ready, get trained on newer technologies and so on. That's where we are focusing on. From overall supply chain perspective, which, definitely, utilization is very high, and as I said earlier, we are not comfortable with it. We are really looking at a much more aggressive hiring from people from the campus, training them and deploying them on projects to bring down utilization. This will also help in backfilling the increased attrition that we are likely to anticipate. That has always been a model in our history. I don't think we are worried. We are comfortable with it. We have always created our own talent.

And there is lot of up and they thought.

Okay and interest.

Yes.

Hi becomes which already.

Your technology and so on so that said we are focusing on.

And from all sublet and perspective.

And it's definitely lettuce and if so.

Hi, and up and again I'm not comfortable with it so.

So we are really looking at and that's what I said before heading up and people and having them and get back on them.

It doesn't play station and the door for has been Backfilling that increased outreach and lucky and they keep them split that's always been and modeling noted stem from being delayed.

And so you have on this EBITDA and on.

And then there was a day or investor loans if any.

Pravin Rao: We have invested a lot in training. Even if we wanted to, I don't think there is enough talent available in the market, for the kind of skills we are talking about. We have to reskill, we have to train, and we have a fantastic engine running. It's been there for several years, and we are pretty comfortable with it.

And do you and if they wanted to I don't think that and that's talent available and I think I know he's got something on that.

Yeah, because peasquito and and where they get the caustic and getting them in GAAP.

So yes for the company.

Thank you for the best interest and thank you for lunch and afternoon. They now take on next question from the P. and life from Mexico, and the P. Acnes glad.

Garima: Thank you for the question, Jochelle, and thank you for answering, gentlemen. We'll now take the next question from Supriya Roy from TechCircle. Hi, Supriya. Please go ahead.

[Company Representative] (Infosys): Thank you for the question, Jochelle, and thank you for answering, gentlemen. We'll now take the next question from Supriya Roy from TechCircle. Hi, Supriya. Please go ahead.

Hi, Good day, everyone I hope, though and you hear us talk it on a fever and somebody on the seasonably ordinary life and and then on congratulations on having lived in that line, if I or percentage interest and operating margin on my first question has to do it and it back and for our views on may not be weighted I wouldn't they know how and Infosys is still buy and how does the landscape.

Supriya Roy: Hi. Good evening, everyone. I hope the new year started on a favorable note on everyone's end. Congratulations on having maintained the 25% operating margin. My first question has to do with the backlog for all these mega deal wins. I want to know how at Infosys the bifurcation between core service offerings and digital offerings, revenue-wise, occurs. Beyond the digital transformation nomenclature, I want to know how the client deliverables at the end of the day are usually mapped onto trying to understand how much of the revenue goes in digital and how much the other bit goes to core.

Just a clean coal for service offerings, and GAAP digital offerings and read any life beyond on digital transformation nomenclature want to know how either client and they never diversity and and daily mapped on to mapped onto trying and understanding how much and comedy on how much the revenue goes in Michigan, and how much that though because the color.

Supriya Roy: This, against a lot of activity with the whole captive deal trends on and about in the recent past. If you could give me some color on how it's computed, digital versus core at Infosys.

This is this again.

A lot of activity would or your cash can be claimed on into both internal and they sometimes I should give you some color on how its computing devices on Cisco and Infosys.

Sure.

Pravin Rao: Sure.

Salil Parekh: Sure.

Supriya Roy: That's my first.

Hi.

Okay, and then I know the question is on no do I keep and later on.

Pravin Rao: Sorry.

Salil Parekh: Sorry.

Supriya Roy: Yeah. Do I go ahead with the other question as well, or do I keep it for later?

Pravin Rao: Let me go ahead with the answer, and then you can come back with the next one please. The way we look at the digital versus core, we put together a fairly detailed and public definition of what we call digital. This is encapsulated in the pentagon that we had shared, which looks at different elements of digital. Within that, we have then described some components of digital for each of those larger elements. Then we mapped it to the project level of each of the projects that the company is delivering for clients. This was started just about three and a half years ago.

Salil Parekh: Let me go ahead with the answer, and then you can come back with the next one please. The way we look at the digital versus core, we put together a fairly detailed and public definition of what we call digital. This is encapsulated in the pentagon that we had shared, which looks at different elements of digital. Within that, we have then described some components of digital for each of those larger elements. Then we mapped it to the project level of each of the projects that the company is delivering for clients. This was started just about three and a half years ago.

Let me go and really on trend and you can come back from for next on food.

The maybe you don't get the digital versus school, we put together the affair and he did and Bob and the definition of work week on did you do and this is encapsulated in the benefit is that we and share original said and things and and then outages.

Within that the and then decide shop and I'm comfortable on his whole digital for each of those larger and it is and then we backed it no project level on each of those projects and as I talked me into delivering for clients and this was topic just about.

The out years ago, and that has helped us to make sure and they do though and everything that we share is much more on bottom up and and then I didn't share earlier on in the session is something that we didn't and consistent with our average.

Pravin Rao: That has helped us to make sure that the digital revenue that we share is much more bottom up, and as Dilip and Salil shared earlier on in the session, is something that we remain consistent with, as the time in the last three years have gone. That gives us a way internally to measure it and of course externally to share with you how that's progressing.

Salil Parekh: That has helped us to make sure that the digital revenue that we share is much more bottom up, and as Dilip and Salil shared earlier on in the session, is something that we remain consistent with, as the time in the last three years have gone. That gives us a way internally to measure it and of course externally to share with you how that's progressing.

The time from that off two years ago, and asking them to be internally to measure it and the holiday externally to share with you on how that's progressing.

Okay I quickly just talk on the follow up on the next on spec and then go on with my second question on Dot on the bifurcation and one of the weighted you compute the revenue back on from the digital and intimacy index and according to the sales that and I get you're looking at the number of nine on top line on that on a bucket lasagna losses.

Supriya Roy: Okay. I'll quickly just draw across a follow-up on that first bit and then go on with my second question. On the bifurcation, I want to know the way that you compute the revenues that come from the digital end. Is it on the same base from the core in the sense that, you know, you're looking at the number of man-hours deployed on that, on a particular project versus, say, for example, you're looking at the final outcome upon which the client deliverables are mapped, and then the revenue is counted on that. That's the follow-up on the first. The second question is, Pravin's mentioned several times about the broad-based growth, on a sectoral analysis, of course. He's also mentioned about the hiccups in the manufacturing end on that bit.

And for example, a yard and looking at the final outcome on on which the Oakland edible from <unk> and then the revenue comes from that that's still a follow up on the flow and the question. The second question is for means mentioned several times about that on a based gross and sectorial.

Oreo and analysis of course, and you also mentioned about there are hiccups in the manufacturing and [laughter] and on that day, but.

Supriya Roy: Going deeper down on a sectoral analysis, I want to understand over the last two, three quarters, is it a play out, say, for example, in the overall macro IT services sector in the sense that 5 years ago, maybe a lot of the major IT players had lost out on a lot of the digital transformation deals to, say, emerging startups operating across different domains of SaaS. Has that played out in this one particular year in the sense that a lot of the backlog, say, for example, if a growth in the BFSI sector should have been, say, 5%, instead it was at 2%, and then it was again at 2% in the following quarter.

But going back on analytic data analysis and went on to send over bid ask her to take on and it up and you know prototype and will pay on let's say for example, and the overall macro IP services sector and that five years ago, maybe a lot about me and I think they have to have you on talking on the other day transmission do you still aim I didn't catch up.

Operating costs are and only depend on the interest that how that played out and this one particularly around the same day and order backlog say for example for margin.

Gordon the vs. I think that should have been saying hi.

Hi for sale is there was a 2% and and it was identical sales and befallen quantum and then is that and I know what the net I'm back on three basis, and any company that does and how gross or not and when should be for two I'd be argument on what dynamically and the back. That's my question. My question. If you do it well and when you know towards the low end.

Supriya Roy: Right now, what's been arrived at on a sectoral basis is a recovery rather than a growth on a sequential basis throughout the year, given the whole pandemic backdrop. That's my question. The third question is to do with, I wanna know, towards the year end of 2019, there was a lot of initiatives in terms of the scaling and reward scheme that was meted out to try and control the attrition rate. How has that worked out? These will be all my questions.

And your 19 is going and finish it and in terms of the feeling and reward scheme and that Doesnt get out to bank and on the attrition rate how is back on account and you have the even the Olympics.

Let me address for follow up and then the other two or even share on his views on the list.

Pravin Rao: Let me address the follow-up, and then the other two. Pravin will share his views on those.

Salil Parekh: Let me address the follow-up, and then the other two. Pravin will share his views on those.

On the phone on the maybe compute the revenue and share their function and now what that specific project looks like sometimes and then.

Nilanjan Roy: On the follow-up, the way we compute the revenue, it's really a function of what that specific project looks like. Sometimes it is based on the number of hours. Sometimes it's based on a fixed contractual value. Sometimes it's based on what is the sort of outcome or deliverables we are providing to clients. These are well-defined ahead of time. Our finance teams apply that method and in a consistent way report that split of the revenue. Pravin, over to you.

Salil Parekh: On the follow-up, the way we compute the revenue, it's really a function of what that specific project looks like. Sometimes it is based on the number of hours. Sometimes it's based on a fixed contractual value. Sometimes it's based on what is the sort of outcome or deliverables we are providing to clients. These are well-defined ahead of time. Our finance teams apply that method and in a consistent way report that split of the revenue. Pravin, over to you.

Based on the Labor line of sight Bangs is based on our fixed on traction and value I stopped and based on what is this on outcome on all the people who can provide.

And these are where the time ahead of time, and then Oh, hi, nasty and apply that ER and the net consistent with the thought that Oh Smith on.

And there are.

From an equal with you.

Yeah.

Pravin Rao: Yeah. On the reward and recognition, obviously, I mean, this is a journey. This is something we need to continue to focus on. During the pandemic, there has been enhanced focus on engagement with employees, both on physical level as well as on the virtual level. It's not only about physical connect, it's also about emotional connect, social connect, and so on. We have launched more than 150-plus interventions. Had a lot of podcasts, external engagement, external speakers, and other things. A lot of activities on the engagement side. We have also come up with a five C framework, with what five Cs are really connect, collaborate, celebrate, culture, and care.

On the reward and recognition obviously ER.

And they sit there and they are and there's something you need to continue for focused on and ER and during the pandemic that has been and this focus on line and isn't it.

Life, both from a physical.

On the what children and.

It's not really about physics, and Cabot itself and.

Hi Tech social connections for.

Loans more than one because people have been doing Jim.

And lot of of course externally.

Hi, external and gave them index as speakers for any other thing to low activity from the installation and say Oh yeah.

So come up and the paint sales and work on that.

So what I see them daily and net.

Based on celebrate.

Hi, Jared and ER care.

Pravin Rao: There are a lot of interventions in each of these 5C dimensions. I mean, this is something we have always focused on because at the end of the day we are a people business. We are a people industry, we need to continue to evolve and continue to make sure we engage with people. Our people are very happy and contented. A lot of focus, a lot of activities, and those will continue.

Hi, I'm looking for instance in each of this Ah I see them engine.

So and do something or are they focused on that and the big area because of the business.

And so we need to continue to evolve and a day for niche or the engaging people on what people are really happy and and so our focus startup activities and looks like for you.

Thank you so much that was on the job now asking if he could in China, then from money control and whenever you now Tech question.

Garima: Thank you so much for those answers. Now, since Sandeep couldn't join us then from Moneycontrol, I'm gonna read out her questions. Her first question is: Could you give a sense of what's driving the BFSI growth, which has seen double-digit growth in Q3? Second question is: Your peer has said they're looking at double-digit growth in FY22. Could you share if you're seeing double-digit growth trajectory as well? And the last question is: Last quarter, Infosys had said fresher hiring would be 15,000. Could you share some insight on the increase to 24,000?

[Company Representative] (Infosys): Thank you so much for those answers. Now, since Sandeep couldn't join us then from Moneycontrol, I'm gonna read out her questions. Her first question is: Could you give a sense of what's driving the BFSI growth, which has seen double-digit growth in Q3? Second question is: Your peer has said they're looking at double-digit growth in FY22. Could you share if you're seeing double-digit growth trajectory as well? And the last question is: Last quarter, Infosys had said fresher hiring would be 15,000. Could you share some insight on the increase to 24,000?

Hi, My question is could you give us and that's what's driving and the other type youre right.

Hi, I think I think if interest in quarter three.

Second question and ERP I have said and looking at a really good if I try and you do you share posting double digit growth trajectory and then.

And last question it last quarter interest in Capex Tricia high interest income rate did you share from insight on the increase of 24 hours.

And I, let me start with the second volume.

Salil Parekh: Let me start with the second point. We see with all of the momentum and the large deals next year as a double-digit growth year, from everything that we are seeing in the market today. We have a tremendous amount of positive news in terms of large deals, wins, and the momentum that we've built. On the Financial Services and on the fresher hiring, I'll just pass it to Pravin, please.

Yes.

You see with all of the momentum on and the large deals we see next year and.

Provision gugino from everything that we're seeing and the market today and we have a tremendous amount of positive news in terms of large deal wins and the momentum that we bid on.

On the on financial services on on that.

Hi, crush hiring and responses to for me yeah.

Pravin Rao: Yeah. On the financial services, as I mentioned earlier, we had a record quarter-on-quarter and year-on-year growth for Q3. It's a combination of ramp up from what we had in previous quarters. It's a combination of some of the new deal wins we had in some of the sub-segments like health and retirement services, mortgages, regional banks, and so on. Thirdly, it's also about accelerating digital transformation agenda of our clients. We are seeing a lot of opportunities in the areas of cloud, in the areas of data services. We are also seeing a lot of opportunities around building capabilities for the clients in the digital banking space. Strong traction on the banking side.

Yeah on the financial services as I mentioned earlier.

Quarter on quarter and year on your gross for.

For the day or it's a combination of and.

GAAP than loans.

But instead and either for it's it's like on the national but on the new buildings, they had and on and subsequent SEC Ah Ah Belton did I Miss and access them altogether in the bank and so on and thirdly. It's also for accelerating that it just on from this more than that for claims yes.

We are seeing lower for personalities and area for cloud and data from data for you.

It also seems logical but net is and you didn't get the ability for the plan and stuff.

And so.

Paul action on the banking side or the.

Pravin Rao: To some extent, on the capital markets and cards and payments is a little bit muted, but compensated by very strong traction on banking. On the other question was on the fresher hiring. This quarter, I mean, we have seen tremendous growth. As we said, it's a record growth for this Q3. Given the growth momentum that we are seeing, given the high utilization and proposition that attrition can probably pick up. Considering all these factors, we have increased the fresher hiring to 24,000 in the next year coming in.

To some extent Dundee capital markets and a constant and then if they come.

Okay and based on the action and.

On banking and on the no it doesn't work on that but the focus on day, that's right and ER and this quarter and and we have seen a lift gross.

And I've got a good for this for the peak.

Hi.

And given the growth momentum, we are seeing on the high utilization and.

For this in that direction and so if you go.

And they're doing all the fact that their interest day, that's generating and the football and.

Next year I mean.

Garima: Thanks a lot. That concludes our Q&A segment for today. Salil, Pravin, and Nilanjan, thank you so very much for taking those questions and answering each of those so patiently.

[Company Representative] (Infosys): Thanks a lot. That concludes our Q&A segment for today. Salil, Pravin, and Nilanjan, thank you so very much for taking those questions and answering each of those so patiently.

Thanks, a lot and back.

That concludes our Q and they say mid 40 day sales.

And and the London I just for a much where they can go to questions and answers and each of those two patient day.

Thank you thank you for everyone.

Pravin Rao: Thank you.

Salil Parekh: Thank you, everyone. Thanks, everyone.

Hi, Thanks very much.

Before we sign off here and I think we've done on the archived webcast on discussed constantly be available on the interest is that site and on average in your China later today.

Garima: Before we sign off, here's something for you to note. The archived webcast of this press conference will be available on the Infosys website and on our YouTube channel later today. Thank you once again for joining us. Have a wonderful evening ahead.

[Company Representative] (Infosys): Before we sign off, here's something for you to note. The archived webcast of this press conference will be available on the Infosys website and on our YouTube channel later today. Thank you once again for joining us. Have a wonderful evening ahead.

And once again for joining and have a wonderfully net.

Hi.

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Oh.

[music].

Oh.

[music].

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