Q3 2021 Wipro Ltd Earnings Call
Ladies and gentlemen.
Good day and when it comes to the limited Q3, EPS wise when do you want quarterly Investor Conference call. It.
That's what it might do.
Like it wouldn't be able to listen only mode.
It would be an opportunity for you to ask questions. After the presentation can do it.
Should you need assistance during the conference call it <unk>.
Six I don't know, but you do it by pressing Star then on your Touchtone phone.
Please note that this conference is being recorded.
I now hand, the conference or what.
Well I suppose it didn't uncalled for it.
Thank you I know with you.
I get it done book.
You want me to afford it team if anyone wanting colon leave it begins people over the business highlights and overview by security data book, Our Chief Executive Officer, and money character, followed by financial overview commodity it pulled it didnt.
Afterwards feel breed doubling it from the Beach book you any of it our management team.
It's still too early Josh let me draw your attention to the blocks. It you need it gone.
We need to meet certain forward looking statements. It in the meeting most beside it Securities Litigation Reform Act 99, just like it.
These statements are based on management's started to pick day, she and I was it.
It should be done such a knee deep into it.
It may cause the actual results could differ materially from those it seems to be the uncertainties as it back just I mean, it on the day filing but if it if it does not undertake any obligation to update the forward looking statements to reflect events or circumstances. After the date of finding the conference call. It wouldn't be on price and the transcript will be made it.
No not net.
Well, what do you see it.
Thank you and.
Good evening, ladies and gentlemen.
He wishing you a.
Very happy new year.
It's a pleasure.
It is you have to speak with you today.
Sure well with net income.
Very unprecedented times and now it improved vaccine prospects, we don't feel there is optimism true 2020 one it.
And and sincerely our it seemed that it would be.
Much better you from the society it.
Businesses.
All clients and for us.
It is still very happy to share it with you.
Got it it can generate first so.
It just it literally 15 days ago, we have going like these all new organization structure are.
When you bought it from for Oncomed.
Okay.
Let me now give you an update on our Q3's performance art.
I'm pleased to share with you that we've actually had it is it going to come to keep well still holds true deployments with.
With healthy growth in revenues.
Acceleration you know the booking it expansion of margins.
Sustain lower employee turnover and sort of your operating cash flows.
Looking at it one by one day revenue growth Shreveport, non consenting reported terms, 3.4% on constant currency terms.
He is at the upper end it all guidance.
Well growth was the highest it 56 quarters.
The gross.
You revenues was.
Good day across sectors and markets and led by a surge in volumes.
Well the operating margins, we expanded Oh man during the call it up by 240 basis points to 21.7 per cent. This again.
It would be how are you. It we have achieved in the last 22 quarters. It.
Pension was led all right.
Driving it some senior operations focusing on improving the quality of revenues.
So the old operating metrics are idle it was torn best including offshore mix utilization.
Attrition and it.
She might subcontracting.
So our overall don't do people to call. It still grew double digits on a year on year basis.
Joe to book was true the crossed it those instead be sufferings it.
A good mix of both large and small deals which is always important for us.
It goes 12 deals.
It is more than 50 million TCV each in the PCB book don't do you use was about $1.2 billion.
Well. It was you know clearly with our largest de lever in continental Europe with mid continent.
All of this was achieved while.
He's supplementing the biggest transformation that your organization that's seen in recent years.
It say real testimony to the states asking the crushing capabilities.
And it could meet it wasn't protein.
But we haven't it grace.
It was really interest it falls on paying off.
No.
Let me provide some color it all done done mining business stuff from us there's significant traction in markets across it.
It all our key geographies, we saw good order booking across major geographies in the U.S. growth for NOLAD was very healthy and the older booking grew double digits year on year.
Yep interest and frequent deltic some of the large deals in Europe, we charted which has resulted PD.
Europe growing faster it all into your own you'll be eases day at 1.4% in constant currency terms.
We see demand in Europe, being particularly strong.
It mostly driven by acceleration from the adoption of cloud it.
Digital transformation and driving efficiencies into core needing to what you might cost.
No promise I told you.
I'm pleased to report that we had it all cylinders firing sorry out of seven sectors grew about 4% sequentially.
Consumer sector continues to trade it leaves on the back office will it be lead growth.
Financial services is driven by demand growth.
It would be much or something about the course.
Oh it led by demand do you did she got operations Dyno cloud infrastructure services user. So it did you gotta trends from Asia.
The momentum in energy and you you was led by utilities. However, we are beginning to see it ramped up in demand you know oil and gas customers as well and encouraged by the deal weeks we have.
It could never did you bounce back this quarter it won't be the healthy growth despite the photos.
Communications and Manufacturing's continued to build on the momentum and finally healthcare and life Sciences. He's built from it was truly aided by a seasonal uptick you know how spin on it services business.
Now looking at the demand environment. It does show him.
Steady improvement in the last six months.
It didn't pick you up to sales it PBT continues to rise.
Oh I'm sorry, it was robust.
We are seeing it heightened demand for our service offerings. It digital transformation. It did you gotta operations and cloud infrastructure services and Boston.
Now let me give you a few examples of some of Halloween did you got operations and cloud infrastructure services space.
First example, we put it on a net.
Relative to your multi million dollar engagement from a U.S. based mortgage lender.
The book size customer service to the lenders rapidly growing retail mortgage client base.
We growth will leverage it best in class mortgage sentencing U.S. I mean, Joe.
This integration services it application development to power the constant currency growth strategy.
Take one example of the U.S. based multi nationals food manufacturing company.
It was we call it a strategy no it here.
It was Matt services contract for cloud and interest from show full service desks.
And she services management.
That's part of this engagement, we probably it also provide it end to end interest from show services, including.
Must be any worse every day, sorry, she bought well place accumulation.
Oh, it and they do the U.S. cross functional coordination in two studies no signs logic it.
In addition, we put it when it comes to date or infrastructure projects globally.
No. It did you don't transformation, we are witnessing significant business traction across three broad areas.
One clientele embracing the transformation of day did you state it.
Moving away from.
Try to it you know like anybody else and it doesn't seem to be mistake operating but it has and shifting the discussion to avoid it keeps you.
Second.
Oh Im sorry, investing significantly on did you gotta these institutions.
So my guidance transformation programs will be coming from two backing it should be including Coltrane somebody should it not just on the key on them each I know it expense.
It's true clawing from moving beyond the least and she stopped it workloads to the cloud to explore it used to be you shouldn't matter you've got diabetes and we are helping data link these directly to business goes.
You know that partnership is it all strategy can alliance to create joint solution thought leading two weeks, where we are helping clients trends from dougherty create business solutions.
Let me give you.
Few examples.
With me it true I get it leading global wholesale food company, we signed it five you and what we're supposed to do it the median doing it.
By the way it was intention to extend it to.
For additional useful potential it spend of 1 billion Euro strategy. It did you got it and I keep on no sheep, we've made quickly.
Cool.
It didn't email it couldn't be technology engineering solutions transformation program from Mitchell as it does.
But you shouldn't expense as a whole century 60 degree provider, even the trading the cash and carry deal down the restaurants and.
Capturing food industry.
We proposed transformation program will encompass cloud growth.
It doesn't go services workplace and network services.
With it application development and operations to provide the need to repeat it slick seaboard and robust digital infrastructure.
Well no. It was we brought it it was mid twog it to simplifying and streamlining day landscape.
Increasingly critical it gives our.
Access to innovation and the best it you've got practices.
Yes, it does but we are being chosen as the transformation partner for bank you'd be okay to reimagine. It goes to know journey insurance form to be more it did she doesn't relationship bank believe it wouldn't be a cloud first a cookie big true.
Oh crops do you continue to build and leverage industry and nobody's until batson's, enabling us to deliver business outcomes rapidly.
Finally example, it for leading health care provider, we have leveraged you double U.S. content it right solution.
To believe it complex that's application forms to meet that you're entering it until you requirements.
No on our outlook for Q4 21.
This guy need for revenue growth it was 1.5% to 3.5%, which reflects the current demand environment. We feel it goes she does.
And who we believe it will be seen our new and improved pricing, but it.
The last 90 days have been very busy for us as an organization as you can imagine, but the good news it.
Got it we are moving into right direction. The team is in place and our focus now.
He's only young girls Nextera liking the momentum.
You know I.
He's day. It commentary you had said that we see more genes sustainability medium term as you've observed we have did you got it significant margin expansion in Q3.
Growth remains a top priority.
We have begun to make investments you know frontline sales in domain specialists.
For 80 per cent of our employees, we completed the promotion cycle. It tricky December food.
And we will also be rolling out salary increases for them if it keeps generally first.
We also announced a 100% valuable day out for Q3 and for Q4, which would make it three consecutive quarters the off 40 payout.
Our margins from Q4, we'd have headwinds of these investments, but will still remain elevated.
To summarize.
I must say I'm very excited by the acceleration in the business momentum.
Oh, we have seen in the quarter and optimistic about the euro had it goes.
With that I had it over to you just need for it for your comments on the financial performance for Q3 21.
Jatin Lucky you.
Thank you very much a theory.
What do you mean, good morning, ladies and gentlemen, as it always does it need to talk to all of you.
We had an excellent quarter it off execution Oh it.
Revenue growth was it doesn't actually I'll put it into our guidance. It three point full but since it was it 3.5 it doesn't it they'll put it.
Your next function off approximately do 40 basis point.
Oh it resulted in our operating profit growth yeah. It O'neill it.
Oh from robust 20 people with it.
We had a higher EBITDA this quarter compared to Q3 last year.
22.1 close it it is they're doing though net income growth was 20.8 per se day.
They do improved significantly from our price like us.
Let me now talk about the cash conversion Oh it.
Cash conversion during the course of the quarter. It was very robust we improved our views. It would these by approximately six days.
Well what it does.
After close to what it does so it wasn't like four months, we continued one more quarter value delivered free.
Free cash flow, 833%, although net income and operating cash flow 806 person all part of EBITDA.
It the angle it just like it to be we.
Yeah, It $6.2 billion off day off cash on the balance sheet and net go day.
Oh, Oh, it cash was $5.2 billion.
Let me talk about before it.
Oh it realize it before just like it was 74.0 flow we delivered needle moving three Boes thing.
Was it do my as you know it being on a go for it.
We had it is.
Oh $2.7 billion at the end of quarter three.
As you out of it we are in the middle of a buyback program and we expect the old old per se, so buyback who get completed by the end of this month.
The board of directors. It also has also approved and it didn't seem to be done Oh rupees, one book share into it is more than anything.
It was one of my financial highlight and it will be very happy to peak accretion from you got it.
Thank you very much.
Ladies and gentlemen, we believe it will begin the question and answer session.
Anyone who it was just to ask a question. Please press Star then one on the touched on it on the phone.
If you wish to the movies said it from.
The question queue, you May press.
Yes.
<unk>.
But it sounds like what's it to use handset when asking a question.
Ladies and gentlemen.
Well the question it was him but it's.
You asked a question piece price.
Got it.
The first question is from the line of from Moshe Katri. It from Wedbush Securities. Please go ahead.
Thanks, Congratulations on nice from quarter and happy new year everyone.
I just want it to kind of get your feel on.
Hello.
Your view, it or what pros to be able to.
Show growth rates that are comparable sales with some of their peers.
And it does pulling obviously you had better than.
Expects it results for the quarter or quarter, it's been strong from many other peers in the sector are you still a growing probably at half the rate compared to some of your larger peers and what do you need to do it to get there at this book Thanks.
Okay. Thanks for your question I think it sounds very you know who you understand equation. It seems clear that you know we have defined a strategy to really go back to you know do it.
The <unk> the leading boarding from of growth. We know it's going to take some time. We it takes first to walk before you run and you know what Weve said that it is that we would go from.
The situation, where we hadn't stabilized the business in Q2 to a gross about them it.
Then accelerate get too dissimilar from it grows then they'll keep it does and then accelerate tax day.
Let's take a <unk> <unk> <unk> or sell.
Well it is to get their harmony I cannot tell you no but what he's can you is that we are not.
I see.
You know do you.
Yes, it seemed to do Germany, we all seem to the tragic too and he alexee cooking step by step after step.
Oh like it didn't designs.
What we see as well is that.
You know.
Yes the.
Increased from Q stone rules.
It was the from <unk>.
Investments into areas that we believe agreed to drive higher growth the noses.
By investing in some of the market is it the key to our success bond investing in talent and so we will continue to see both our journey and our road map.
So bear with US you will not be telling you you know matching you promise.
One or two years ahead of time, we all agreed to exit cute.
Consistently and today you will see to try it you you would see do it the consistency of the tragic to equal so often walk though for now it is can you.
You know the demand is good mark it is good and our live it lost optimism it is easier.
Okay. It just as a follow up.
Joe.
It just to confirm what I heard are you comfortable that some of the margin gains that you had in fiscal 21 are sustainable looking into fiscal 22, and obviously you know the the new pandemic driven work.
Working or work from home model has has giving you guys a lot of flexibility.
And.
The real question here is whats sustainable into next year Whats now thanks, a lot sales and color.
Absolutely. Thanks, Misha Jatin you want to take this one.
Sure It city.
Okay. It.
No. It was you as you know the my didn't momentum as it has three effectively what it is for four we proved we spoke about it earlier in the day.
One is the revenue improvement the share revenue growth could be it operating leverage on fixed expenses that has had it. So don't be second it is a significant off shooting well was it goes up last four quarters, although it all fuel mix as you as you can see normally it does she does it improved by approximately.
Oh, six percentage Oh, it or did it also philosophy watches and authorities, we have been able to manage our utilization you know of any day range, especially in quarter three it just it will leave you have done quite well.
So the first component, although it does saving reaches related fixed expenses remaining act. It does it go live Oh it given the situation will spend it make very very slowly go away. During the course of snakes six to nine months and that is.
In reality that go to prepare it always says for most of it but the revenue momentum if it continues and operating it remains then some of those had one day dismissed if it does though within.
It is in the operating margin.
Below book, we love to see how how situation band so the emotion.
That's it thank you.
Thank you.
The next question is from the line of <unk> from ICICI Securities. Please go ahead.
Mr. <unk> your line is it.
So it can go ahead.
So these are going to value from ICICI Securities. Your line is it.
The question.
That's that's notice once we take the next question from the line from each show from Macquarie Securities. Please go ahead.
Yeah, Thanks for the opportunity.
Thanks for getting some data points revenue.
The first question is being done so from any quick learning belmiro from genes in the operating model. It tends reported billings of a foster finishing off the pipeline conversion also by lightning.
And this does it make it question all this quarter it yeah, Mike let it be the TCV of one point.
If I exclude the Metro E D on the.
It would be Lynn I find it didn't lose it easy.
I reach the Europeans do 45 $50 million. So TV just wanted to understand what does it.
These new wins on lots it sites.
Making up back it was then they'd be quarter otherwise it made becomes what I think I'm a believer in moving from me by email becoming called it out.
Right, it's true so okay.
Okay, alright, thanks, Cindy so.
I.
Question on the operating but then first.
You are working with it we have built has.
Before moving strength swanee eats he.
No. It would do you does meet meet many less PNM EPS would reduce the number of PNM from something like 26 dumped before I.
Moving up at night live it for.
And that means a lot less was from side you invasion it logged as a.
Sign ups and lot more opportunity for people to work together second.
We have put in place a known they should where strength.
Strategic market you need to all the while managing the accounts and managing declines relationship.
In a given geography or even market.
Oh working hand in hand, with the global business line, who owns you expect Pease, who owns it solutions from a define it you know best even talent right and we won't believe it and those p. work together and that is the logic of one week from.
What it does it is that you know you have actually less people it.
Focusing on managing Okun, shorting being done or you have more <unk> more people involved on deals more people working on opus, even working with clients more people it exposed to clients less need it to.
Non agile probably should it be organization. So you on member.
So the efficiency I mean, obviously weve moving to de SMET, then on generation. It so it's going to be a need to be.
Early stage to Oh.
C V's easily the do it yourself, but what do you see it is the 41.
We only generally sell team.
But the horribly innovation is already in place under the new model and that's you know yourself a the proved out you know it didn't get it doesn't but it it was well designed and well.
Oh implement it.
Second day is delayed.
The little it seemed MTT that we've got it over the last three months on the way we are working on a book communities Mobileye using force use around the group leveraging the capabilities and the references we have even do it.
Been very very high very high intensity.
So to use we have moved from a quarterly.
Tracking of sales activities to it monkey tracking of sense I give it to use in that it has undoubtedly.
Even a change to shift eating it live it if he'd been C D and E and discussions around deals.
Just to give you more examples we are who they exist.
You can see it could meet every week.
Uh huh.
More than 50 per cent or PD spoken from these analgesia exclusively to.
We see not focusing time, you know you don't know discussions, but we'd be looking at you know our clients connecting with all clients I have never a one day, we sell it to come to a client and I know the team is doing the same it has the same it really go from didn't see deep and from that standpoint, I think we are more.
Present in the market more ambitious and more active then it though.
So it couldn't be they seem to be a CBD teeth that we've already started to implement team or Q3.
To book is the investments.
And make some bold moves in some areas where we.
We are convinced this it strategy.
Data from having an organization, where it really you need was beside you need so probably it would leave you have now in the alignment of probably easy does it says too.
Moving faster and stronger.
We've made also some you know decisions.
From off.
You know.
Yep.
In order to respond proactively to Oh situation from clients, who are exposed to in the context of could read it and I think it would be well received as well. So I would say you know its the beginning of this journey into new a good humor there, but this is promising and the last thing I would say is that you know based on the survey it.
We run it internally the feedback and the level of production it understanding and since you book of the teams and leaders on this new old very humid and he's very high.
So the momentum it deal.
Okay. Thanks, just up although it well do it.
Relative to say you don't like to eat more said he thought it in the pipeline.
Good question.
Regarding the margins it.
For all told that it could be a wage hikes.
Bye.
Yeah, I've got all this one I'm, saying I got it.
I guess, maybe in the next couple of quarters I, just want to be a large field. It had said next year.
So I see it. He also said that it will not be will continue to be the mean I view it.
So it doesn't isn't possible believed that it would you got it.
<unk> Mi continues it than not named it.
Somebody you make it seems.
The Jatin, maybe before you respond to it I just think be it the big deal. It question. The first part Tonight I give it I, let you the second one so you'll first where your question on the beat it was okay. You want to make sure. It does it mean, you're gonna we in long Beach will book walk, though okay. That's the time, okay. So you again, we have moved.
From a place where we didn't.
We have largely due to a place where we have long and now we are going to systematize that ease the Ludwig help having it created this big deal team but.
Dislodging team. We have you know we are structuring it we are putting spurts knowledge or you do not to go after large deals. The way you go after a smaller deal you need to bring different type of.
Got it and experts fees and caliber.
And and we are putting that in place we use it seems to have usually have a true beginning machine.
So now we have something to buy it and we are getting more. So this is good news, but it we are not yet at the place where we will have once one day one every quarter.
Do you get it.
Thank you.
Yeah. So it so sandeep here it is what what though we have articulated it we definitely had a great quarter. It importantly, they said 21.7% from being much. It we definitely have investment it into front line sales get they will it be considered being domain they do it.
Moving and it just kinda.
Oh, we also have a whole still investments on does it reach a theory in sort of it articulate it since this morning.
Oh, the beach means that quarter on it.
The margins.
Oh boy it on higher side and in Florida. It forward, we will not see those given this had been a that we spoke about in terms of investment having said that some of them and if it did they feel seen a day.
During the course of last few month, which is that we have looked at it was found to be able to looked at it. It is close those benefits will continue.
We have an additional lever it seemed themselves into these revenue momentum there should always hopefully I'll offer coding has increased significantly over the last few quarters that it will also hopefully sales team. It cannot go go out overnight in quarter four so so its almost.
The benefits food will also continue compared to where do we put it in the beginning of the year and hence our Oh, what it I population is that we will see a headwind of this investment has it would we will not go back do then do the labels they'd be was it the beginning of the year.
Oh, it, but we will remain elevated from those lives.
Okay. Thanks.
Good day.
Thanks.
Thank you.
Ladies and gentlemen in order to ensure that the management is able to address questions from participants in this conference call. It.
Please limit your questions to one flow to participant for any further questions you might come back for it.
The next question is from the line of some people going about it from me device. Please go ahead.
Hi, Hello can you hear me.
Yes, hi send it.
Hi, Dan Congrats I think one management teams want it when things are sometimes it can go up into the guidance and all it sounds wishing you all happy new year and steadily since it well I have only one question Gary or is that what these outlets that they get towards that all.
Hi products can like how do we think the whole opportunity on the cloud and all those who I have seen you signed so from a GAAP tax thing well by the banking industry I from a long fair enough from that I think it too thin and what is your what would we are starting to go get it says that Oh I.
It wasn't any good. Thank you okay. All right. So thank you. So you know cloud for US he is.
He's a.
Big box. It is is it right that the Senate Bill four growth strategy right.
Oh, one because you know we used to repay a day you know position.
On the infrastructure side, a significant investment to be made over the last years, we have strong relationships with as you know companies like you know it do but you as Google Microsoft We've been company like services now like Ah Ah sets forth and so on.
We have.
Invested and we want to read it continued to accelerate on the cloud. So it definitely add the heart of our strategy what do we see we see an acceleration a significant pickup.
In a different buckets, one in America, where.
You know the the club journey I felt it some years ago we.
We see an acceleration from what you much every industry, including from to be a precise sector.
In banking and insurance it.
In Europe traditionally.
A lot of companies, where it would be it.
Specious or carefully with the public cloud it adoption and therefore, what's going a little slower on the on the cloud transformation and.
You know I believe it will depend to make there.
Realize the Mississippi to exit it right and therefore, we see now.
An increase.
From a business in the pipeline.
Cloud transformation in America, Europe and Asia.
The relationship we have built with our Oh no.
It.
Oh, absolutely critical.
I've actually gone several several clients to gives a which is the CEO of one of these large companies are.
As you know together and I think there is and you call. It understanding on both sides on the technology side on services side that you know when it we altogether it will to offer a cohesive unified proposal to a client we reduce loved the level of risks.
For him and this is what it has been happening. So I would say you probably I don't know if you realized it so that you know five.
Right it would be strategy laid out and presented to the market. He knows in nobody in the October actually.
We have it.
It was that due to point around the way we want to leverage our relationship with partners. We have created a very door.
No relationship.
Team inside Wipro, which is a.
Very senior leader, managing this and vice president managing each of these relationships. So that we are taking them to another lever. This huge up it tied on both sides and the first discussion Tonight going get result of them, obviously on deals not only at the.
Ah Copart live on it but you know on deals there's a equal appetite on both sides to it to work and you will hear more about the type of partnership that we will be.
Built together with sit all of them.
Yeah, Hi, thanks, Thanks, a lot. It then it not mission and wish him best of luck that guidance quite that high price.
So what happened here at it I'm thinking from day.
Thank you send it.
Thank you.
The next question is from the line of so different from ICICI Securities. Please go ahead.
Yeah, Hi, good evening gentlemen, that's when it goes quite that and I'm thinking it is opportunity TV thought it would be probably historically, it's true. It has been that it can only pick up what's the thing that's true.
Secondly, given the drop in that having it and they do it the first six months of this got into it and the subsequent recovery over September and December mathematically that it looks somewhat spoke but if it does it covering much or anything at all it so I've been talking about strong leasing momentum over the previous six months. So it put these things into perspective, it looks like Oh.
Look for the next what it would have been cash.
I'd be glad to know your thoughts it we are being conservative here or is it better somebody that element.
No I don't try to be conservative I really tried to define a together with jet team and the leadership team you know, where we believe we will land. So there's no don't don't treat or any game here I think you know this is a.
It was realized the context, we are in we have had it says to me a good quarter. We continue to have a good quarter for us well within the context of the transition into the new madelle disease going swiftly, but those are conditions. That's you know feel that it'll probably be we feel comfortable it was the 1.5% to 3.5% growth.
For for Q4, which you know I I believe is they use it was a good one on it and you know more importantly studio or so for us the.
The only be it we have given you shouldn't we don't want to shine one quarter, we want to build it or sold it lead Costco I still go after and it and be consistent it and I think this is a this is the the rational behind it or Oh communication as well so you're right.
Our building solidly vis a vis a gross angie.
Okay and just one question just think of it.
Damn stuff margins of course, I do like it pointed out that he has some other factors like range rather than what it is your mind on it like non beyond that I can go and so be it may not be able to go out that I guess are with it but it ends up some of the aspects like CGI utilization or how comfortable I'd be it the current levels because Ah Ah I read it comfortable that that's been sustained or it probably.
It it would be it I'll end up hiring which can bring down day realizations going extinct.
And so we have done a good job on utilization I think last five six or seven quarters, and we can do a good job.
Is it good saw it up to share a word that Len planning strategy or and how he sees.
It does get the school.
That's it.
So a few from something like two or three aspects. It one is on the.
Heidi that's it was very robust I think we I forgot it doesn't plus a net tax 40 doesn't Ross and again, we see that momentum continuing we onboarded pressures in Q3 guidance.
Before I had it very broad based across the globe. So that's one second is it.
Attrition has held true for the last two quarters of it being flat, but given the momentum in the market I see it could be a rising trend in the coming quarter.
Uh huh.
Keeping this piece to it it might look at a new collaboration for Q4 or NATO believe it is typically seasonally quarter believe it does actually see him as a from Q3, we'll see him as Q2.
If you look at it from a.
Got it to your business is it a 4% increase so.
I personally believe it could also have some xps off on it.
<unk> GAAP.
This area. So this is a strong person lever for us, but from a supplier say that I'm comfortable that you're going to be when it.
We make sure that we manage the growth momentum.
Cups.
<unk>, thank goodness for the day.
Thank you.
The next question is from the line of it get each day from minimal.
It.
Yeah, Thanks for the opportunity to.
Can you just wanted to understand it he took them on a recurring cloud services or do you see this being compressed over say the next 24 months to put it six months enough that that's kind of going to flow.
Basically talking about interest 10, it it services demand Ah that's.
That's question number one and then I have a subsequent question one on the PCB.
You don't you know it was smiling listening to your question it be any because I feel I've heard this question for several years already and I. My conviction is absolutely. The contrary Gary So I think in my mind, He's gonna be more you know a a lot more demand the it.
Wow that environment is creating so much opportunity there you know companies will realize it.
The potential off you know it true cloud environment on Wednesday, we want to develop new services, new solutions, new platforms and so on it. So I think you know it.
For the full feel free true, we would definitely sort of surreal from B a cloud wave, but this is not a small ways. It's a very big wave and we are we are not it 60% of it.
Okay Jatin a couple of data points I. Once it was 1.2 billion PCB is this completely net new I and the other question I had was it a you know or you were talking about a a restructuring of yard collapsing the management structure from.
What about the people being reported net 24 25 people it before people how much. It saw gains do you think you can extract from this these two points. It 1.2 billion TCV is this going to be net you end the gains from the restructuring.
Yeah 'cause it so it so far it is no. It does both dogs are both a competency in it which means that Oh was oh.
Oh, where a they knew it as well as the new deals that are part of it they're not fitting to me, but it looks good this it especially for this quarter. It is easy for you to.
It will see a component of new because because the metro normally it sitting as part of this them, but it that you know it is a thing it is completely new it so.
Even in that it is so the revenue you apply it normally it doesn't did you will see that there is a significant component of new independent going to and just setting a collateral and this quarter. It we've probably been non given that it makes sleep I mean, it the day definitely but this quarter. It is quite obvious a book for everyone to.
I'd say from Oh, sorry, your second question was good it.
The gains from this Ah collapsing of the management structure you. It you know people reporting it just for a senior tough love it managers compared to say 24, 26 people or how much of games do you see from that.
Sure. It you know.
It is saved it for us this is it around creating a simpler structure for a greater revenue momentum Oh, so be it investment focus and shot but it accountability if not it on costs I. It good so it up to outside his perspective.
Yeah, I think that New York is about making book notion that Jilin book client centric. So that's been the focus because.
I didn't think it is true reinvest it really seeing an order from leaders onboarding in the coming quarter. It as over the next quarters or as to cargo book to.
So I don't see it as a caustic sales and what it is a motorboat oh, the big dog makes it more it doesn't.
That's it.
Okay. Thank you.
Thank you.
The next question is from the line of appreciation Dr. It from a lot of capital. Please go ahead.
Yeah, hi, thanks for the opportunity.
My question is your non these revenue, but employee al it despite a shift in the off shoring that number is flat on a quarter on quarter basis. It. So it seems.
We have had done the cash margin that's bad so just wanted to understand you know how sustainable Oh, you know these cross my inside it Oh, you know once we shoot back to you know non work from home environment.
And the second question is what the non.
When it was a large organization of that size growth story you all.
You know it then it is a substantial amount of margin Lisa now how much of the current quarter margin side or Oh I'm coming from.
[noise] Oh you know this study all then how much of it is I know you're not going to come over the next to tee up it it. Thank you.
We share frankly, I'll take I'll take that one so one we've shifted to disorganization modell generally for so again [laughter] does not reflect much income off savings, but again to insist on what jetting said, yes, and GDP you driving it if you shouldn't.
C and productivity improvement it agreed it so what it means is that you know.
We will be more efficient and you know I've, a better it back into market, but for the rest.
The simplification and the rationalization of pharma then.
Well it she is you know it somehow reducing the number and the need it for many management rose.
It's actually freeing up a lot of football team is to reinvest into our future.
So that's how we are seeing remember, we really flow piece it obsessed about girls and wanting to really invest and prepare us.
No. We as you know it was more differentiated solutions, it better offerings and a top talent and so the way. It we see seeing season, we are constantly looking at ways to be more efficient.
Meet more nimble.
Avoid the predication avoid a it consistencies reuse.
You use lay use of leadership, we ever used in the Dolefully years, you know these Asian increase the span of control.
And all of that you know driving savings that we reinvest into our engine going forward that it is why also of course, you know we believe we will be able to accelerate our growth.
Yeah. It everything I answer your first question.
Ah you don't or revenue per employee as a metric as it is a great metric to track internally Oh. It. It has it does videos a day I mentioned to it first is simply the price increases or a second day as offshore <unk> told that it is the type of services that you are selling or.
Lastly, I view, it be who would have a much lower realization than than I did services.
Then that it then then that it an element of all fixed price what it says D.N.
So.
Oh it. So you know we do track this internally and we are quite happy with it real good feel made or what are the quarters, but if we go to command of externally the momentum and and and make it insightful for insightful for you.
Or be it.
The point, but but I can tell you that we watch it carefully every quarter and we have comfort in the baby homeowner most prominently banks in recent times has been on offshore as a.
As well as accident it growth that we've seen you know it did you do operations this isn't it.
Oh, Thank you call. It thinking my question and best wishes for the next year. Thank you.
Thank you.
The next question is from the line of fish it from there.
Yes.
[noise] hi, thanks, it doesn't myself.
[laughter] on my part of it Hmm backbone from up and that's moving along.
It spending but some of it.
Is it must've been hobbies among from Guy.
Well bag.
Okay got it.
But what I can do it.
It why isn't there more color one let me pick one from me I.
But do you plan to them it wasn't it.
[noise] reshaped time it.
Sorry, I read it did nothing to stand it anyway.
UK you came very much or it was difficult to tons from.
[noise] can you any chance you can.
Good day [laughter], let me, let me repeat the question.
We've talked about investments it on sales or expanding into some of it strategic markets and hiding from other senior management goes right.
It could be like I said each of them does it.
The lessons to be complete that's one.
And second if you could just provide some color on what quantum of day type or how do you plan for the next quarter.
All right.
What quantum what sorry, what's going to it the first question I understood what's going on.
I want to walk behind it.
Oh, Okay, Okay come from quantum of day hike, okay. Okay. All right. So I'll take the first one answer I will give it and give you. The simple you want okay true.
So the.
[noise] to be honest, it's it or we should see it. So it's an ongoing process, we are going to be active.
On talent acquisition, very aktiv, probably more than what you've seen us in the recent past and so you know we are going to obviously you will be.
See you every time, we bring you know a new talent into New award we have many key roles in the organization or that it will on board. It a top talent in the near future and I'm not talking here about you know six months from now it feature eat into.
It stops you know eat into weeks to come and that's going to be true all the Euro 2020. So tell me you know.
My view is that by the end of Q4, which is you know the first call still into new My day, we love more or less Oh, the key roles fuel the old do you know the main key rules fueling, but then we'll continue to stacked. It. This is a journey as I said Oh several times.
So we will not consider we've arrived after three months will continue going to constantly.
Invest and constantly look for the best talent in the industry.
[noise] should it on the rate hikes Oh.
As we have called out to.
Two things one is.
Best victories X, we will have a book.
About 80% of my book Force getting increases from Victor first of January or it did.
Typically this we have a wide range of it because it.
Depending on performance and but on an index basis between five and 6% would it be an average wage hike and it was he would be would it be wanting to book that so you do have that's what it is this is moving eggs. It was in line with what is happening in the industry and once we get it done in the previous years.
Got it from that you've also done a according to our it wasn't really big plans for Q4 for all other price. So that's another [noise].
[noise], California, and Oh, I remember it.
Yeah, I mean it ocwen.
Then quantum of the day I couldn't moving.
I really like yeah.
Oh, what you said I wouldn't call it all.
So you know we will revisit it early because our next cycle typically it in June so we wouldn't be it will take stock of that a it's an appropriate time, depending on you know what's happening in the market industry. It kind of stuff, but I left no real plans for the people and the close of the day periodic stock on you know what we do for the next day [noise].
Got it okay [noise].
Thank you.
The next question is from the line of the Fishman from it.
Yeah, Thanks for the opportunity Oh from of course, it once the boat.
Oh, yeah. It seems significant interest impediment. It seems there are many charges and it or not or it just worried EBITDA margin expense. It is even more substantial.
If you can call it some color how much it or how do you expect it was impairment charges to play out over next couple Parker.
And second question is about India. It studied business it showing significant garner from do.
Do you think it is no more so certainly it would have come up but its not performance perspective, what do you think it or we need to work.
Well I got from walk to get more sinister never performance coming yes, I think it.
So I'll take I'll take the second question on D., It sorry, and I'll, let you jatin and so the one on the impairment ER and it strategy.
So ER so looking at the it sorry business. So we have.
Confirm or we have from L. strategy or focus.
India, sorry business in India and from a topline standpoint, I think we all being it.
A lot more or.
<unk> said it keep in specific about you know the type of deals we are looking for.
And on the heels of and I seem to frankly speaking Sangita Singh, who is you know now head of operations for.
Repro seems generally first has done an excellent job too.
You know normalized or improve the quality of the operations bring discipline and and you know a a best practices inside the organization and so I think the work is done them Tomorrow, Jean I will let Jeff team complement but on the margin side. He's Oh it was certainly.
You know from good it snarky, it's not a one off.
Ah, Yes, that's right.
It was Terry or are they still have you seen a this is also not a one quarter phenomenon so to make it it system. It it could leave you know.
You would be hope you know improved this might it in completing though the unfinished projects by ensuring that the this flavor in it current execution it significantly lower and it surprises I really anticipate it and and and dealt with it and they don't know longer it come to.
Oh, it where do you sort of expenditure to the company. So Oh, what does it feel very comfortable with the trajectory of performance on I am sorry, Oh, both from the both from the quality of revenue standpoint, My since then and margin standpoint. However, this quarter's numbers that obviously oh on it.
On a greater scale of 20 people send it then that I don't think of it so saying it will remain it would remain or only a single digit might it is or not on a medium term basis. They do though it anticipated a view of the sector.
If it improves further we would it be also it will be a force happy to share it with you on impairment charges.
Yes. It has been some acceleration that we have a day be it had to take it does I didn't quite it regarding a one particular item, which is but it did the impairment charges and we don't anticipate that too because it so it would be a one off it doesn't it.
It it what's it going to quantify it.
Yeah, we did it is reflected in the financials it beyond that or the other non share the color on that it was.
So my thought do you have any further questions no.
I don't think it thank you.
Ladies and gentlemen, we take the last question from the line of that's in financing from Investec. Please go ahead.
Hi, good evening it happened here to one a few Ida christenson different theater it because so if you look at a pandemic I think inclement Jim Cline.
Clients are having more work being done off shore.
And Oh, what do you think in terms of buy when they possibly reach a country. It is thresholds or any such thing.
And do it.
It would you think that this is here to stay on it there's likely to be it the west shift on site or at some point. It so that that force my question. Thank you.
[noise] you know, it's an interesting question.
I can.
Well you see from the perspective. It was pointing time. This is a trying to project suffice it if I reflect on the discussion I've had with our clients.
It has happened over the last nine months.
They've learned from.
It wasn't the case before they've learned.
True describe it sees that.
You know the kind of work.
With teams that are not ideal for so distance suddenly.
It has become a.
It different brought him or less if it probably.
Oh, well at least the problem that you.
You know they they could not picture handling and that they actually realized it can handle so there's definitely a reflection from many clients realizing that.
It can you can give it the can manage a complex operations and dredging, but it with teams that are.
Not that dog it indeed distance.
So that's the first point to seven point of usually is that you know it deserves organization that if you do so Dan.
You also need to have a small or smaller.
Very very connected to it.
Team locally.
It was actually really the two different aspects that day one is.
Now we know that we can operate with a global but we cannot operate with people working from home and frankly, whatever you want me it.
Right, but also it means you need to have.
Sure It team, but people who are really next to you connected with you, 100%, even more than before which who she is the logic of having less.
Oh, no, but stronger buttons.
Right and so this it clearly my my view is that.
What do we call it off shore does not exist anymore. It's all shores right is what you know it be motel under which a lot of clients, we want to operate going forward.
Really blind people some people are being close to them.
And people being the way.
So it will it in you know maybe you find the percentage up or down you know it will be to be seen but certainly.
If there was one proof of what has happened over the last nine months.
We can provide an outstanding strip off to a company in services to a company, including strategic services.
Resistance.
Sure It that's helpful.
As a follow on I I think I do when does it typically would have a country. This metrics and if that's the case would demand it.
Having maybe offshore but in other countries other locations as well and the second thing is.
Considering that there's such a strong pickup offshore.
Everyone I do expect wage inflation at some point and by when do you think the industry. It would reach a point where wage inflation from your point of what it. Thank you.
Chris I'll, let Saab and there's some on the certainly bar it what do I could comment as well, but I like it.
The first one I would say.
Yeah, obviously its.
Ah there's many companies many clients who decide to a different.
Platforms to average around the world and not necessarily limit to one thing in the country.
Oh, it can be that choice and you know it can choose different places you know in South America I mean.
Eastern European he knows it places in Asia what.
What is clear, though is that you know at the end of the day.
No it stopped to know whether this market then the scale and the quality of the tenant is not you know evenly spread around the world and so you know you know that you know depending on their choices you make it wouldn't be at some point you time it limitation in double scale.
That's why my view it yeah, we continue to have a unique position wanting to have a concentration of you know technology expertise and talent, but it also income off you know quality of or the.
<unk> expense.
And on your second part you know.
They typically when you see huge demand and huge hiring here Mark. It is we will see if they should work as it is no. We don't see via coming out of a metered revenue and they were doing with this.
Two quarters back so very comfortable right now were doing this isn't it if it goes forward, but let me say it if the demand is high and then moving from north and at the moment.
Sure very helpful. Thank you so much and all the very best.
Thank you.
Thank you.
Ladies and gentlemen that just last question from today I.
I now hand, the conference it was a mess up at night for closing comments.
Yes, I got it maybe a question your line from the outside.
[noise] It gets done from thank you all for joining the call. It gave me couldn't take any of your questions. He sees it seemed to reach out to be net sort of nation gains. It you ought to be happy new year, and good night and good day.
Thank you bye bye.
Right.
Thank you very much it.
Ladies and gentlemen, I'm going off of it from that's.
That's going to it which this conference thank.
Thank you all for joining us and you may now disconnect your lines.