Q1 2022 Wipro Ltd Earnings Call

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Ladies and gentlemen, good day and welcome to earnings conference call.

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I now have the conference over and it's a partner is vice president and corporate Treasurer. Thank you and over to you. Thank you. Welcome to see if I can call. We will begin the call with the highlights and overview by Theory data for you and managing director followed by a financial overview, by purchasing them. After what the operator is, open the bridge of Q&A with our management.

Before Theory star, let me draw your attention to the fact that during this call, we may make certain forward-looking statements within the meaning of the private Securities. Litigation wage, Jack, 1995 the statements are based on Management's, current expectations, and all associated with uncertainties, and which may cause the actual results to differ materially from those opportunities, and which factors are explained in detail file with a cc, the so does not undertake any obligation to update. The forward-looking statements, reflect events and circumstances. After the date of the conference call will be archived and the transcript will be available on a mission.

Thank you. So everyone.

Thank you for joining us. Today, those of you joining in from India, many of you may be coming out of very difficult. During the second wave of the month. So, I wish you and with all humility and hope believe the, the future holds better days for everyone around the world.

Is this is not a mix that we can write off lightly many of our colleagues and the loved ones have experienced grief stress suffering over the past fifteen months Wipro as stepped up in every way possible to support those affected or quick task force led by saurabh. And I'll see you on June. I've done everything possible for colleagues with rent up, efforts around oxygen provisioning, testing we established a reservation. Centres in many Indian cities, we partnered with hospitals and managed Hospital admissions.

Or many of our employees who are stationed on site with family members in India, we process task force has managed of securitization and care of their family home. Nobody, We are continuing to a fair and balanced medical insurance coverage, unfortunately,

We lost some of our could even to the virus during the second wave.

In some cases, we have the spouse or such an employee. Yes, so jobs with us, we have treated as the primary

And we both had them, irrelevant rolling Wipro.

And we are recognized the emotional toll on people. So Mental Health Resources are being made available for our colleagues around the world presently about 56% thousand employees in New York vaccinated and we will continue to provide maximum capacity in our campuses, but more broadly for a community, we continue to operate a dead, Kobe, the hospital in our campus, which has treated almost 6,000 patients. So far, providing some relief to the city wage whole things that we were able to do has gone a long way to bring relief.

For leading us through this extraordinary time, I want to thank my leadership. Team for steering our people and our business and every 1 of our employees wage being such strong audience of the spirit of people and for giving us the best. This is definitely made with a stronger more resilient more dependable company than ever before.

This actually reflects, you know, results in the last few quarters and also what I from customers they say they are seeing a more Innovative main set off an operational agility from lacrosse team.

Billy.

Our new business strategy, simplified operating model and bold approach is starting to pay off.

Oh Q1 performance. Therefore continues to show considerable expansion and binds and buoyancy our Revenue growth trajectory has continued to show shop. Improvements bookings, have remained healthy. And our education, showed remarkable perseverance.

Michel, now some specifics.

11 degrees during the quarter was 12.2% in reported terms and 12% on constant currency terms which is well ahead of the top-end off. Guidance range, both on an overall basis and excluding Capco

This translate into a 21.3% year-on-year. Growth in constant currency terms. Not only is this the best ever control? Hue, 1 also. So us report the highest Organics against sequential growth that we've delivered in 38, quarters this tremendous job.

Was really led by strong volumes across, almost all markets across, all, sectors, and service offerings are available account addition. During the quarter, the forward slash revenues from our latest acquisition Capco was also the head of the guidance.

What's the delaporte? This is the operator. We can't hear your audience at the moment.

Ladies and gentlemen, we would expect you to stay connected while you check the line for the management team.

Ladies and gentlemen, thank you for Patiently Waiting. Do you happen to have a beautiful day reconnected? What do you say?

Thank you very much. So sorry to all of, you know, I I've heard that, you know, I lost you actually a couple of seconds before I realized it. So I'm going back to the specific. So first, he's our Revenue grows.

During the quarter was 12.2% in report in terms, twelve percent on constant currency curves which is well ahead of the top end of our guidance range. Both on an overall basis wage but also excluding Capital this translate into a 21.3% year-on-year. Growth in constant currency terms. Not only is this the best ever. Quarterly result, you may also show us rebuild the highest organic sequential growth. That we have been good in certain age quadrants is tremendous growth was led by strong volumes across, almost all sectors, all markets and service offerings.

I'll be able to count a decent during the quarter. Before was the strongest ever revenues from our latest acquisition Capco was also the head of the guidance office. Now, looking at the environment demand environment is robust in the quality of our oil pipeline is better than before our gross wages during the quarter was strong. And we continue to increase our participation in deals in the marketplace. We closed, 8 large Wheels, resulting in the tcv of 709 Dora, flea, markets are witnessing, so in demand, but in the Americas, 1 market, large viewings were exceptionally. Strong point. We are seeing a good mix of large, medium sized, and smaller beans.

The announcement of acquisition of character, we have shared with you. That the long-term sustainable operating margins, Bain, post the dilution of capital was to break between 17 and 17.5% during the quarter. We have deleted margins, well above that range at 18.8% after consolidating, 2 months of bank or results, and significantly investing in Thailand and supply-chain, we already over 12,000 employees. I mean, they basis, which is 80% of what we've added in all of last Financial year and the highest in the last decade. Now let me add some color to the underlying business performance. All numbers are in constant currency for ease of reference,

Significant traction across all markets and our growth is broad-based. The top 3 markets group, double digits on the year on year basis, but without capital in America is 1 grew 18% year-on-year.

What's the?

The sectors I've seen strong traction with health and consumer, verticals leading from the front in the Americas. To we grew 24%, year-on-year, happen, by your strong volume increase Capco. Beauty is as far as elevated. This performance, the demand in, the bfsi sector has remained strong across all these offerings, this quarter, the high-tech business grew by 26% year-on-year. While manufacturing business is making a recovery slowly off. European business has delivered on your growth of 32.5% on the back of several large balloons, as well as the Capco acquisition. UK am in Europe and Germany. Let these groups

Apnea markets group at 0.8% year-on-year. And we are now seeing improved environment in Australia, New Zealand and South East Asian dining. These markets are healthy and growing.

Service offering standpoint, our ideas, Global business line grew by 18.3% quarter-over-quarter and 25.3% year-on-year home. Most of the sub practices showed the Healthy Growth. We are seeing increased demand new offerings like Cloud transformation. To shift to age is unmistakable pronounced, a number of cloud related wins in different Industries and geography last few months and to further our gross and commitment to clients, may I post Kayla Partners, we will be making a significant announcement about our cloud cloud business in the coming weeks, which I encourage you to look out for.

Our I call Global business line, grew by 3.7% sequential and 15.9% year-on-year. Both of our large-scale practices in France and digital operations. Grew double-digits under your own your business.

Our top 10, customers grew 16.4% and 17.9% year-on-year. In constant currency terms, we added to customer over 100 million account category and 2 new customers in the over fifty million dollar account category. Let me give you a sense of life kind of deals. We all we need

First, we secured the multi-year multi-million dollar contract from ausa sales company.

To consolidate the entire on-premise and Cloud infrastructure operations as well as end-user services using intelligent automation.

Consolidation with create attractive opportunity to streamline operations, and hence user experience and he's the application portfolio. Migration to clown by using the digital first approach,

The leading European automobile manufacturer.

As the world, he does a contract to transform and my internet and Cloud security access that they can meet the requirements of remote working solution. Wage, I'd protection from Advanced cyber threats, enhanced security compliance, protect copyright that Alex reduce cost and provide scalability.

Another example, leaving USA distributor of plumbing supplies as selected Wipro to support the cloud transformation journey by and birth quality Engineering in the development life cycle, and compare sincere and implementation data, migration, and Legacy applications.

Additionally, we probably provide managed services for cloud Erp covering multiple business functions and resulting in improved, business agility and customer experience across more than 1,400 store locations.

As most of you will know, we completed our acquisition of Capco the NFL..20-21. Over the last 2 months, we have made sure that they are gradually inducted into them and stopped. If you got the old,

Why is these are early days of your? We continue to build good momentum on our joint. Go-to-market defaults.

Not surprisingly, the Synergy pipeline is shaping. Well and we have started seeing some early wins. For example, we have the joint Consulting with illegal payments provider, where we create migration framework for 9:50, Regional Banks and Merchants to move to a new digital platform for debit cards off. We continue to announce more such means for sure. I finally on to our outlook, for the next quarter, we have guided for Revenue, growth wage 5 to 7%.

Even at the lower end of this guidance, we will cross the 10 billion annual run rate of revenues, which we are very excited about.

Why we don't guide for full-year, you know, that the few 1 performance and the queue to guide and sets us up for well, ahead of double-digit growth for the full year, even expecting topical. What Sharon was you, are you strategy last year? I had said that Talent will be a critical success factor. The spending has overturned, several Notions, Notions of how organizations transactionally approached Talent engagement in development.

the drama and shift were

Remote working environment has made labor across all sectors and markets, more mobile and liberated. Therefore higher attrition has become a union issue. We Pro Technologies, this and he's adapting quickly, we have doubled down on increasing intake from campuses across the world as well as Thursday is killing our existing Workforce.

Will on both service represent more fresher in this white 22. This is the previous year. We also intend to about 6,000 Fraser's into to itself.

Grosses. I'll probably with you and we will ensure that Talent Supply is not a constraint to our ambition in the short-term. We will experience some extract inflationary pressure of people cost. We've announced sorry. I for 80% of our employees effective September 1st with Saddam hide in this calendar year.

Well to summarize, please leave the shop improvement in our growth trajectory and we are optimistic about building on that momentum in the remaining quarters, Financial you on that note like me, head over to jetting for his comments on the financials getting over to you.

Thank you, Theory. Good evening, ladies and gentlemen, thank you for joining our call. I'll summarize the financial performance. We have grown 25.7% in reported terms from q1 of last year, or operating margin are Thirty basis points, lower rate..18.8 compared to q1 of last year. I had a certain closure of outage in our taxation matters in quarter..1 whereby our tax rate forequarter, 1 is 16.1%,

Well, what all our net income..35% in our EPS group 41%.

Let me talk about cash flow.

Behave managed water well from DSO standpoint, we have improved it by 7 days to deliver a DS of 68 days in quarter..1 that hath has does deliver operating cash flow at a hundred and 4% of our net income.

And free cash flow at 90% of our net income.

We had 4 point 1 billion dollars, gross of that. Cash at the end of quarter, 1 and 2 point, 6 billion dollars of cash, neck of that at the end of whatever.

I will now speak about our Forex performance, we had a good realization of 74.75.

In quarter 1, we have 3 point 4 billion dollars of Hedges at the end of quarter..1 S Theory mentioned, we have guided for 5 to 7% sequential growth in the currencies that are mentioned on our press release.

Will be.

Happy to take your questions from here. Thank you.

Thank you very much people. Now, begin the question-and-answer session, anyone who wishes to other questions and 1.

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Participants are requested to use Hampton asking a question.

anyone who would like to ask a question, please press and 1 at this time,

Ladies and gentlemen, we will wait for a moment while the question assembled.

The first question is from the line of the vehicle from I see I see a security. Please go ahead.

Yeah, good evening, gentlemen. Thanks for giving me the opportunity. Congrats on a good quarter. My first question theory on the health, bu across the top 5 Indian companies Wipro perhaps had the strongest print in healthcare vertical even before the onset of coded, and over the last 4 to 5 quarters. This vertical has been doing quite well but most other players begin. The ad hoc work companies have faith in areas like contact, tracing applications or vaccine logisitcs management, etc, etc. However for this vertical has been quite soft over the previous several quarters including the current 1. Any color on this page to why this is the case and what is the Outlook going forward?

You know, when we were looking at the performance itself for the quarter, you know turns out that you know the 1,000 best-performing quarter in sales has been the health care sector. So you know I think we have a nice position, we are showing a little lower growth than summer. It's clear in Revenue, 2.6% growth quarter-over-quarter, it's 10% gross your Anya from our house business. There's a nice Improvement in America in particular. So I think, you know, our mission remain the same will continue to invest in this occur. It's 1 of our strategy picked up and will continue to get stronger in this sector, but we are back into gross mode in in healthcare.

And my second question, if I looked at, you know, the guidance, excluding the impact of brought it in for the September quarter will likely be in the range of 1 to 3% off. In constant currency terms disappears, little muted, especially in the context of the demand momentum. We are talking about any thoughts on this friend? Are we being little conservative here? Or are we forcing some headwinds at extension?

You're talking. So you're talking about Q2 now? Yes. Okay, no, no, we are not. We are not, we are not seeing any, any actual we continue to grow. Well, and we continue to perform well and, you know, I don't I'm not sure your mass is is is accurate, to be honest. Frankly, you know, I think Capco will continue to age. You know, they've grown nicely disqualify, other continue to grow the next router. But the what what we call the business before Capco is going to continue to grow well, as well. So, you know, it's it's just not going to be want to 3% gross. The way you see it, it's going to be more.

But definitely any color on that. What would be the organic growth guidance for next quarter? So today we are not breaking it out. But theories commentary is is accurate from the baby. See if we will we will be see strong traction, both in Capco, as well as uh as well as dead organic or without Capco number. And Ambien is not even completed yet. So we will complete it during the course of the quarter.

Thanks. You think that's it for myself?

Thank you. The next question, is, from the Lionel, Sunday, from either wise, go ahead and page.

Sorry to interrupt. Your voice is breaking up. So

Can you help please? We can hear you but your voice is not clear. It's breaking up. May I request you to move to a better reception area. Maybe it might have. Yeah, neither of us would work better.

It's better at the moment to make. Go ahead. Yes. I have a question and I'm not asking for an ear because we are seeing a big turnaround in the, in the choice to know..2 things since you have joined, what is the change in your timeline of when you came in, how much proportion of your time, you were spending in stabilizing the operation building the team, making the Strategic changes choosing the right path of growth and and building customer delivery and experience versus now. So, how much of time you have been able to curtail and start focusing on growth sales, engine and marketing or you are still in the same, you're spending your time the same proportion as you wear when you joined that is number 1. So basically I want to understand that how much of the things have been stabilized since you have joined and how much more time you will take to stabilize birth.

You'll start hundred percent focus on growth growth and growth. That is number 1 and number 2, I wanted to know is that we, we are in a situation where probably now took our country is in a monopoly situation. And what I mean by Monopoly single Monopoly, in fact, where there is no competition virtually outside, India to execute process services. Do you know, there are few companies which are existing, but they are also depended on Manpower from India and very less proportion is outside India and it shouldn't be available can be demand. Demand is chasing Supply that is a reality, which are dealing with. So my question is, why this this open-ended kind of, you know, guidance of double-digit and I'm not asking for any specific guidance for any quarter or any year. But we'll see you at least, you know, say that what you are saying now. For the next 2 or 3 years is something, which you would not have seen in last 10 years or fifteen years at least that kind of comfort. Do you have today or yep?

Refrain from giving that Comfort to the investor. Thanks a lot.

Which he's, you know, the outlook for growth for the next quarter. Okay, I would look for gross after the first question was just remind me cuz I forgot to write it down. What was your first question? Just, tell me the 2, I just want to know the change in proportion of your time, which you will. Okay. Okay. Yeah. I used to be a long day. So I, my memory is memory, is telling me. So,

Day 1 day, 1 that we engage with clients. So I've I've never done anything else then focusing on girls from day 1, if I look at and I'm tracking my timing in the way, I'm focusing my time I would say it's 30% of my time talking to clients. So engaged directly with clients 30% of my time, okay? 30% on gauging with employees and that's really on the people from, it's connecting with all sorts of groups about, you know, uh, you know, the strategy, it says, much to share about the priorities. Explain why? When we are going, what is your phone number? Also, get feedback from them. So really connect at every level and and, and I would say about 30%, Thirty forty percent 30% to look at home.

Okay, okay. So I'll come back to the point.

You know, different aspects of operations, um, but that's not only operations, its operations, and strategy. And so it's looking at, you know, a, uh, opportunities, like Capco and off. And you know what, all the strategy priorities for us, and how do we progress along these lines? So, I've not to be honest, since your question seems to be about you, do you have time to focus on anything else and operations, I've never stop focusing on the market and on our clients and we are gross. Obsessed wage inflation. Every time we we talk about clients, we talk about the growth, we talk about deals and this is what we are doing. Okay, on your second question, outlook for life, you know, the next year, what is very clear is that there is a strong demand, okay? It's a very good market for companies. It's time to take market share wage.

Time to uh, you know a grow but it's for that you need to really focus on the areas of interest for the client. So really the birth of high demand around cybersecurity around data around digital transformation, around Cloud Journey or these topics are in high demand. And for sure, there's a tricky because, as you said it, it's it's it's, you know, we are going after 10 and then we are in an environment where, you know, there's, there's there's good in a shortage in Talent at some point in time. And so we are, I think, well positioned. We've had a very good impact on income of attraction, in terms of attractive, uh, mascot for the the potential employees or people that we are hiring and we continue to do so. Yep.

Can you believe that the market recall?

Need to be good for the next Walker's cannot predict for the next year's but I can certainly predict that for the next available there is, you know, a very good perspective of growth and in high demand because the company is the clients from every sector. Every industry, we are working with our driving transformation program. The I am interested in technology today and so you know, and I see it's very visible in connecting with, you know, our clients that you know, they are engaged in significant transformation program. So you know, definitely a promising market for for the foreseeable future for us.

Pankaj. Thanks a lot. Thanks for your time and wish you the best of luck for the future photos. Thank you. Thank you.

Thank you. The next question is from the line of missing from investec.

Yeah. Hi. Good evening, everyone. And 2 questions. The first 1 is, how do we think about margins going forward? What do you think would be the puts and takes in terms of headwinds open this blog thought process there? And the second 1 is, if I look at the BFS, the financial services Revenue excluding tags. It looks almost flat. He's just wanted your thoughts on the underlying environment on the Core Business there and second. Any thoughts on the energy? New treaties, vertical, know what I mean, the strength in that decision.

Okay. All right. So so couple of questions. So the first 1 is around, you're, you know, you're reading of the gross for the first draft. So in the first quarter after Capco will be part of the organization, but we are still communicating on, you know, the contribution to the growth of Capco into 1 of the 12.2% growth in reportage did you fail the Q1.4.9% is organic. Okay? For .9% quarter-over-quarter is the organic growth generated by month. We broke before Capco. Okay. So it's it's it's it's a strong growth Capco is growth has been strong and therefore overall it's it's a very strong growth 12%, reported terms twenty 1.3% in constant currency terms year-on-year. So this is for the growth itself.

The margin profile. What we've said it's probably you know I think we are very consistent with we've said I probably 3 to 4 quarters ago is we are going to drive a growth agenda, gross strategy game but not to the expense of margins. We will protect and maintain the margins at sustainable level that we had qualified between 19 and 96.5%. Then we've gone the Capco acquisition. We've said that Capco would have a 2 points of margin impact on our life and therefore you know we are we consider that, you know the margin around 17.17.5% is going to be the level where we will be fog.

Possible future.

We've done better this quarter 18.8% but it doesn't change our the way we are seeing our matching profile, getting you want to give more color to it off.

Thanks. So, you know, the way we are looked at it and we have always maintained it. Also spoke about it that growth remains a priority. And I sure do appreciate that. This is the year of opportunity for every player and certainly for us and you've seen the growth that we delivered in quad-core and we have delivered in quarter 1 and we, we have to invest in people because that would be a key differentiator in the current market environment and we have lunch, so we give salary increase for our junior staff on 1st. January, we are going to give them 1 once again, a salary increase in 1st September for our senior staff, we have given salary increase month of June for which 2, 2 months impact will come in quarter 2. So we will remain invested in the talent in this year to make sure that we capture the Dead.

What Market has to offer and we capture share, having said that there are definitely levels that we will continue to leverage parameter of 1. And you heard sort of talk about the kind of pressure addition that we are going to do. Uh, certainly offshoring is 1 big thing which continues to play out quite well, third month, these automation afford these productivity that we can drive rotation that we can drive across organization on this scale. Leverage that operating leverage can play out in in a group scenario, like this. So, there are many levels that we remain very focused on and we'll continue to work on, but we will remain focused on on both revenue, and we will make a fine balance with margin as we move forward. But our commentary on the medium-term Outlook. You heard from Theory, that's what we we keep in my name.

But if you've seen quarter 1, we have delivered significantly movement.

Restaurant that canceled. So, we expect that after the September salary increases for eighty percent of the people, it would be followed with for the Senior Management as well mid-level and Senior beyond that.

So, so what are you trying to ask? Who's good in full of every quarter, kind of salary, increase, in fact, just as we had in Jan, and we had an outage in in uh, in this quarter for mid-level and Senior what we see a follow-through, similarly post September for the senior limit in the next quarter as well. Once you think about it, you know, the sort of here, the plan is not, there is no plan for that, it will come now in the normal cycle, which is the handle cycle in the next month, for everybody, after the second cycle, which we are doing in September now, for the junior people, everybody will get into a normal cycle from next.

Sure.

That helpful. Now, my last question between missed was on the energy and utilities wake vertical and what's driving these things. Thank you.

Katie. I'll I'll go ahead and answer that. Okay, I was amused. Sorry, go ahead, good. Okay, no problem. The only thing we are seeing good Traction in the market for energy, energy and utilities. And and as the demand is coming back, the growth will remain a little jumpy. So I'm very happy with the performance that we have delivered for the current quarter, but but I think it would it would remain. We have progressed very well on a project and RAM that up. But it's not that we have seen, you know, another sort of 11% growth in offering once again in quarter 2. So it would remain ugly little long as we go forward. Yeah, exactly. So. So, that's what I was going to say. If you look at the energy and utility sector, we we have a healthy busy

Who you have a good pipeline the girls that shows that he's that you've seen here. This quarter is really beat exceptional and you know I don't think we will necessarily sustained it at this level going for life but it's it's it's a it's a good sector for us for sure.

Cuz that's helpful. Thank you so much and all the best.

Thank you.

Thank you. The next question is from the line of reporting. He'll go ahead.

Thanks for taking my question, just found here that they said of course we've been doing great for the first quarter of wrote itself and the second quarter guidance ensure that we will be able to clock much higher than double-digit growth paid are all calico. Even if he explains the information, just wanted to get your perspective on. How sustainable do you think this growth momentum is in terms of large environment and I think we had the underperforming experience for quite a while in terms of growth rate. So, given that this year, of course. Of last year which was impacted by 22 onwards and all. Do you see enough demand environment for us to be able to at least be as possible. And yep.

And then do you believe given that the current environment that was in Europe has occurred in. So they should be some slow down as well.

I mean, you you definitely can assume that will continue to grow at the nice place. If you look at again, if you look at the performance in q1, you know, it will be interesting to see how this compare with the competition. I believe we will be at the high end of the, of the growth sequential life and you're on your of email in the industry, even excluding capital. Okay? So that we continue to see the growth, you know, I'm being strong and, you know, although I cannot tell and I will not guide for beyond that. But as we said, we know already that given, you know, where we're going, how things are going. And so, on down the volume of opportunities in the pipeline, given the strength of our relationship with our client, given the quality of our Solutions and and capabilities. We

Double-digit growth this year as well from your standpoint. So, you know, the you can assume that will be showing Rose for for long period of time.

No, I need to confirm from the kind of person that we might be getting

Sorry, your voice can't muffled. I didn't hear. You said in concern around what?

Sorry. My question was any confirm that you might have come across from your conversation with clients regarding the third or fourth call with? And maybe if lines are looking down to just maybe wait and watch and then they're sending passcode. Yeah okay. Okay so your question was specific to commit understood. So

You know, we will grow a solid night.

Every country is going through his challenges and it's certainly been incredibly challenging for India, in particular in q1. And so, trust me, we've, we've delivered this stuff from and despite or in a very difficult context for India. As you know, I think our teams are being incredibly resilient over the last fifteen months and it showed ability to really deliver with no loss of productivity and very wage is strong growth and and strong work and strong credit you work to our clients. I think you know whether we like it or not there's a reality is that our industry has learned about adapted and can work in the current environment pretty well. So now that it's my preferred option I definitely prefer a world without correct but dead.

Trump a business standpoint. I think we can definitely continue to certain grows despite difficult Health environment

Sure, we're together. It's been just 1. Last question, from my side, for, in terms of integration, I would assume that all the payments that are required to be made made em. So, just wanted to get your stance on. We already having around the 4.1 billion dollars of cash, and on top of that, we raising $17 of bonds just recently did. So, I mean, what is the status of the company as to, why are we doing this is it low cost of capital or preparing for some other thoughts, or something else. Just wanted to get your perspective on that.

New shot. So, you know, this 4.1 billion dollars of gross of that cash is after the 750 million dollars of bond proceeds have come, in fact, it is inclusive. Second is, you know, we did it because, you know, we wanted to keep a healthy mix of date and internal approvals for our large acquisition, such a long journey and and, you know, we should retain the flexibility on the balance sheet and that is the purpose. It is not created for any specific purpose. Uh, you know, as in for some other active purpose or other watches for a specific goal, it is something if you see em all. So you would see it on our balance sheet, the size of the cache and it is in line with that.

Public payment.

I've got positions have all been made.

They just completed in quarter 1 complete. Thank you, thank you so much.

Thank you.

Thank you. The next question, from the line, please go ahead.

Yeah, thanks for the opportunity and coverage for strong indication of a few questions. First of all, Theory, can you help us understand what led to this positive surprise? Whether it is very broad based off a few deals late for some surprises and on Capco. Or is there any seasonality or 1 open this quarter or this is organic business growth which leads to even Bait on Keiko side. Second question is on slightly medium-term. Now we have seen Services business remained largely linear. So now we are both very strong demand that or do you think we can have some non-linearity into business either through pricing construct or maybe from permission or something? If he can provide some slightly medium temperatures how you expect that linearity to play out over medium term? And third question is about a sorry business. Now, we have seen last few quarters of consistence

Katie Performance Construction company profitability. So if you can provide some medium-term Outlook coin profitability of India sarojini, thanks.

Okay.

I'm sorry, business Capco season of Revenue.

So, the Capco on the Cap Code inside know. And, and the first question was really on our grows why, why such a strong performance and gross. So, to your question, I can easier respond and clearly say, it's not coming from 1 of or, you know, 1 thing somewhere that has been, you know, I would be impact or 1. No, no, it's broad-based. It's really across our strategy Market. You need across our Region's, we are seeing a growth and demand and the opportunities everywhere. So that's what gives us also confident. Because it's not based on you know, 1 a splendid

We it's it's many many deals everywhere, so that is solid Capco, Capco seasonality off there. There will be a seasonality in Capco, but it's not actually playing in its not playing into 1 you want. I don't think there is anything particular. I think Capco being a fifty percent in Europe, you know that traditionally summertime in Europe little softer because you know it's vacation or you know summertime but you know having said that the trend and the growth and your name showed by Capco team is strong as well. So I think it will continue and it will you know, continue to surprise us positively dead.

As we as we.

Work and, and develop opportunities of synergies as well idea of Revenue. I think it's clear that there will be, you know, the way we can leverage platform, the way we can raise prices, the way we can leverage automation to create a slight disconnect between growth and wage. Um, and hit count illusion. But for the best part, my view is that there will be a

Shut the level of continuity of the linearity between those 2 parameters. So you should assume that, you know, grows will be fueled by account growth as well for the best start.

Last SRE business. I think, you know, the sorry business is being in recovery mode for several quarters. It's doing well, I think it's getting stronger and stronger wage. And so I think you know, the work done by Sanjeev in the last years now, I'll see you and the work done by K U is, you know, continue to reinforce opposition in this market, we have also clarified our strategy and Define where we want to invest versus places where we no longer want to invest. And I think it's making us more, agile, more focused, and probably more consistent as well for clients.

Jatin anything you want to add around those points?

All right, would only appoint I will add is why we have had good number in terms of profitability for couple of life. Well last week water for so from from modeling standpoint you should continue to model, you know uh end of that sort of a single-digit positive margins for that business which I think is is very good outcome, given it is a very segment. We have we have a theory mentioned, we have been quite successful in completing some of our long pending projects and that has given us a better outcome than what we originally anticipated. But I don't think we can, we can say that this business is our 20% plus margin business.

Thank you very much.

Thank you. The next question is from the line of

fabulous Court everyone. You know my question is that the opposition has any influence on revenues from your top 5 or top 10 accounts. And the context of this question is that you know it's quite unusual and quite remarkable as well to have growth from topped off around..30% sequential got me curious as to what

Kawaljeet Davis. Right there has been addition because of capital in some of our common customers and that has been something that has been reflected in top 10 performance.

Thanks a lot. Application. Just not my second question, is around the global account executive structure. I remember that was the change made by. Uh, you know, in Jan, and that called, for a change. Also, in profile of a Google account Executives, you know. Now, do you have the, you know, life that you wanted, you know, at that level and if she has, when does 1 start seeing the benefits of this change into the numbers? Not to say that the numbers are not good, but just curious about that theory respond to the sort of respond to that question. I want to just add 1 point to what I said that, you know, even if you take the aggregation of kept out, we would like to clarify that. The sequential growth is ahead of company growth rate on without Club.

Visa in top 10 as well as on a yoy basis. It's a, it's a double double digit number. So it even without Capco aggregation the growth. Momentum is correct.

Yeah. On the on the account executive, you're absolutely right. We have really invested a lot in building, strong account, executive roles inside the organization, running our large accounts. We are higher minimum wage to use. We have spent time with, you know, our best account Executives to, you know, help them to get more accountability, but also more responsibility that most people we have really restructured our model or operating model so that they become Central to the boss large account growth strategy and you know, it it definitely bearing fruits. I mean the even excluding Capco the larger Club.

Growing faster than the total company and its new in the past, you know, typically the large accounts who are growing less than the growth of the company. And so that that, that was something to be correctly. Then we are seeing, you know, nice impact on the growth of these accounts, after the organizational change and maybe the Investments we've made into Talent senior Talent.

Thank you all divisions.

Thank you.

Thank you. The next question is from the line of sumeet Jain from Goldman Sachs. Go ahead and thanks for taking my question. The first thing I wanted to understand in terms of your broad-based growth, if I look at your industry verticals, the growth has come from media, Telecom retail and, and you. And if I exclude, the Capco acquisition Financial Services. Also had a pretty weak growth and needs to be out of weak growth in health care and Manufacturing and high-tech vertical. So, just what you understand in terms of broad-based, growth in, what areas are you growing or? Or at your deal? Win of 750 million dollars. Large deal wins in. What industry? Verticals are these deals largely comprised of

So if you look at deals that we close in the quarter, you know, clearly the the the sector that stands out in terms of performance have been the health care sector wage which of the consumer sector.

I would say the bfsi, is it okay if we are looking now, the revenue growth performance, perfect 23,000 bfsi. Now, of course influenced by Capco, but 14% quarter-on-quarter from consumer, 12%, quarter-on-quarter from Kia. New 12%, from Communications, those are very strong performance. Technology is being growing lightly 2.5% but 14% year-on-year so long I would say, you know, there's always room for doing better for sure but I you know, I would say the gross profit.