Q2 2022 Infosys Ltd Earnings Press Conference

Look in the pipeline, we see good activity.

Digital transformation is still very much part of what clients are driving they are driving that change agenda through their businesses. We are interacting with them. We are working with them to see how that becomes a large part of all of the work that they want to put in place on a multiyear program.

The Mega deals as I was sharing earlier.

We'll always be.

Not predictable in which quarters. They will come yes. There is a lot of deal flow, which is what we call a medium and large deals.

Our large deals values are based on all of these which are above a threshold of $50 million and hence.

We have various ways internally of looking at these things, but overall my my sense is the pipeline is strong and we see good growth and the visa clients and looking at each industry. The incumbents are going faster to transform themselves.

It is cloud native digital players are scaling up massively. So this is a good time in that sense for the demand and a real Testament is we've increased our guidance for the full year with what we see in the pipeline and with what we've developed so far.

Yeah, so on the supply side, though like Allen mentioned.

I mentioned this is an exceptional demand scenario and.

And frankly, nobody was really preparing the crusher, which is the main source of talent for this industry.

Really that hadn't filled into the pipeline and therefore, you have been seeing the sequential increase or even by us and the industry in terms of taking more and more pressure.

At the end of the day, I mean, India generate a million pressures engineering graduate each year, who can come into this industry and really fueled our volume growth.

And fundamentally rotational right admire attrition is somebody else's locker and somebody else is interested in dielectric. So end of the day I think one professional speed into the system, they get retail and up scale, you will see the supply side easing off.

I think I'd, rather work in an industry, where you know demand exceeding supply rather than supply creating demand. So I think it's a.

A problem, but a better problem to have than the other way around and I think increasing our pressures to 45000.

It's going to fuel some of that.

Supply side to make sure we remain committed to our existing deliveries on our clients, which are number one and number two new.

Volume growth, which we cannot sustain.

Is there a stabilization.

Part of it would you expect two or three quarters of stabilization requirement.

The challenge yes.

Yes, I think I like even prevent I said I think the two quarters. I think you will have a lot of assets coming in and you will see some of this attrition and also the retention measure a lot of us are doing it at promotion whether it's in terms of compensation, whether it's targeted retention I think all of that will come into play.

In terms of the FSA.

Had extremely good growth industry, leading <unk>.

Or 20% on a year on year constant currency basis.

And we haven't and this probably several quarters the metal there had this kind of growth in this segment.

I'm also happy to share that.

Number one day.

In the banking and financial services.

Service provider ranking.

We are seeing lots of traction across and great momentum across geographies, both in Europe as well as North America.

Our clients are investing in our estimates that experience that.

Using advanced analytics and AI.

We are also seeing a lot of focus on remote customer alignment like Michael banking, the multiplicity and so on.

Of course, we are also seeing a lot of talk about this transformation.

Our focus on building capabilities and platforms around some of the details.

It felt like a <unk>.

<unk> asset management.

Wealth management services altogether.

These include dividends and that we're able to win more deals.

And then market share play.

Today, we are very very well positioned in.

And in the end and somebody can play out given our depth in the minds adapting and.

In our personal and digital transformation capability and we expect this momentum to continue in retail as well we have seen good double digit growth. This quarter right now also seeing decent.

It can cause with autonomy for opening up.

We are seeing a lot of pent up demand as the retailers have started literally investing in building new digital capabilities in our marketing and farmers spending populating getting lot of traction around digital consumer getting out of that cannot on promotion.

Personalization and Tom.

And our.

Recent new launch of Equinox platform, although its an added advantage for us in this case, we are seeing good traction with the existing clients are selecting plants.

We expect steady growth in this segment in the coming quarters.

Thank you gentlemen.

Thank you. The next question is from <unk> Gupta from V business joins us on video.

Good evening gentlemen, those are all here.

Lots of my age I'm not sure I'm actually just Brazil business segments make growth coming to AECOM liaison Peggy culture.

Specifically manufacturing could be cut or copies of this appraisal who may be at least for some good growth, but activity kit or are there are puts in good shape. Your basket anything up to 10, 9% you hit your leverage to kind of it all.

Right.

Can we expect a shaky financial services get bad space, which is already show right given the kind of broad genomic once you're going to see Tom Smith, a P J equally or do something else to meet up particularly competitive strategy.

I don't see them facial skin Heidi arena.

<unk> is that a smaller set of beeps, but just for a little while you see here well spud Yafei tomorrow for Casa Berardi.

But he Bernard thank.

Thank you.

So with that.

Let me start by answering the first one.

Lean manufacturing is extremely strong.

Area for Us and we've seen very good growth, which was again good client traction for that.

The step back within within the company, we have a broad better diversified focus on different industries.

Of course financial services is the largest for us consumer products and retail is a very strong industry for us as well as Pravin was sharing some of the statistics on that and manufacturing has always been a stand that we're announcing further expansion with what we've been able to do over the last few years. So yes those were.

We'll be a very important but that's not to say areas, which are very strong for us utilities telecommunications a high Tech life Sciences. Those will continue to play a big role because we do have a well diversified set of industries, where we work exclusively with a lot of clients in.

Those areas large enterprises in those areas.

The second part was.

Sorry, what was the second question that you had.

Sure.

Do threats of wireless pentarchy distressed facial skin hiring delay angry catalysis that refreshes, but how about a four course youll, but now I have argued heading I get you're guiding.

The company can start did you buy user accounts, who do you suppose that therefore, which I'll get to look at getting it.

Okay quantity visa yeah. It would be the focus your head what it is but he might have been at a.

So there are.

The approach we have put in place as we've shared.

It is a combination of things we have a tremendous focus on large deals which are deals above $15 million for us and we've had a good track record over the last three or four years of the way those deals come about and that continues we have a good pipeline of those deals but that doesn't mean that we don't.

Okay.

There are smaller visa that's also a very significant part as you see the number of towns client relationships ships that we have which are for example over the 100 million over $50 million.

Those keep expanding very well because we spend time to work with each of our clients to expand in all sizes of opportunities that so that approach is not going to change.

The idea of bringing in more people into the company.

With college hiring is simply as a leader in the lines of the shedding to expand the amount of people. We asked to serve all our clients. So both on large deals.

Other these within our client base, we will continue with that approach.

Yeah.

Thank you.

The next question is from Chandra from money control churn right here with us.

And there can be on mute.

Hi can you hear me.

Hi, I'm glad to be back on the inputs is campus and not electronic city I'm, sorry, I'm going to start by asking you in terms of the total would be.

Initially post pandemic.

Our argument with cost optimization are you seeing those cycles getting longer are they more discretionary projects now with companies emerging out of the pandemic and if you can also give us a break up between the net new deals under the new ones out of the total D. C. V that you have done Milontin, you manage to kind of hold on too much.

Despite wage increases despite attrition biking, Oh, what's that also because you will see us in marketing costs, plus a little flattish.

Do you expect this to change because you haven't really changed your margin guidance. So how are you going to kind of balance to sleep.

Got it.

You started the veteran in the company you seen all the ups and downs. So tell us about your last D and what does the future structure going to look at when.

When you have multiple C. O structure are you guys planning to do away with it altogether and what do you want to do post enforced. Thank you.

Okay, Let me start off with a little bit of what we're doing in terms of.

What we're seeing with clients today.

We are definitely seeing that that activity with clients is giving us a good traction.

We think all of the work that is going on whether it's related to cloud whether it's related to digital.

10, giving us good growth and good momentum in that area.

Our focus will remain very much on making sure that we work both with existing large clients and also with new deals.

That are coming in and we don't see in that sense, a distinction on any of those areas.

Let me come back later and address some of the points that you asked.

But let me pass it onto the onion.

Yeah. So from a margin perspective, as you know, we've dropped about 10 basis points quarter to quarter.

Broad breakdown of vessels.

<unk> was about 110 basis points.

About 50 basis points was the headwind on subcontract out to meet the existing demand we have to actually go up and ramp up in coupon.

There was a headwind of about one 6%. We've also added about 80 basis points of this from cost optimization and operating parameters like utilization. Another 50 basis points of impact of an SG&A with the operating leverage and that's very core to our strategy as well and about 30 basis points remaining is coming from pricing and currency.

Not simply about SG&A it is making sure that we are.

We're working on a very aggressive cost optimization program as well to negate some of these headwinds and <unk> from a margin guidance of 22 to 24, we are very comfortable with.

And we don't see any reason Virginia.

Convenience certainly onset of clients of ours, but he is doing afterwards I'll just take a couple of seconds to talk about what we're doing within the company.

As I said earlier.

We have already put together on what we're looking to do in terms of a structure, we will announce it internally in the coming weeks and then we will obviously communicate that outside so very soon you will get to see what that is we have a very strong set of leaders within the company. So I'm extremely confident that we will have a structure that would work.

For our clients and for our business.

Sorry, just one follow up well considering the Caribbean has sort of been leading do delivery management for UBS in Bengaluru European don't be again do you see some difficulty that because this is the first big adult level of change that we will see off after you came in so any difficulties that you anticipate this is going.

Not that I know from my side I see that this is gonna be a case of you know purina has built an incredible team over the years.

Cindy and evolution, so I'm looking forward to having many of the new leaders to step up and focusing on the areas that prevent must focus on of course, the company and I personally will miss having tremendously.

Okay.

And I just wanted to add what <unk> said.

And the function that a lot of time Linda.

Strong pent up need that's I mean, that's when you can.

I really don't anticipate any calendar and pantheon.

And with that I'm pretty confident about that.

And they can in fact, taking on their own.

Then my last days December 11.

I don't blame them.

Now on page 10 of our time there'll be on.

Yeah.

I mean, just one clarification you said you've handed out promotion in large numbers can you give us a sense of previous yours, how much would it be the ceiling how much is it because of the.

Antecedents at ball for Tech talent.

It's I mean, we normally don't give out the exact number but it's significantly higher than what we have done in the past I.

I can just step back.

It was little needle a perfect number.

I also wanted to take a moment to thank all mainly the absence of the divested.

There definitely has been supporting for this audience.

That doesn't mean that and.

Once again, thank you Ed.

Yeah.

Thank you.

The next question is from Felipe arrived from Bloomberg three thoughts here with us.

Or is there kind of a mutual okay.

That instrument.

My question is about patients.

And.

Competing against.

That are offering but ignore the BMW.

And the shutdown.

Luckily.

I wanted to ask you what new creative measures taken earlier company warmed up now competing with two tier will start up obviously it is called for.

Really innovative thinking.

That was my first question and my second question is about three per study could you come closer to the mic.

My second question is about.

Paul.

Travel is going to come up the return to office.

All of the cost and more how's that going to affect.

Your margin.

How are you going to control costs.

And will that sort of revise the H one b visa issue, that's been sort of under controller as sort of the feed it into the background in the last two quarters.

And my last question is about.

You know this is a kind of a time when a lot of.

Nothing is going on.

In various sectors and I wondered whether infosys is looking at any kind of acquisition big or small.

Okay. Let me start off again, thank you for being here in person.

The.

You know what.

What we have in terms of the connects with our employees is.

It was incredible we are a company as you mentioned a 40 year old company, we have tremendous longevity and the strength that comes from that and very exciting projects that we work on because they are working on these digital transformation cloud data analytics projects for large global enterprises and.

That's been very exciting.

If this thing that we shared earlier 45000 <unk> for each of those we are probably going to look at 10 to 15 people for each person that joins us and it's still a hugely competitive.

Environment and for somebody to join them. So we're very positive and constrained of course, there are many people in the startup ecosystem is fantastic.

Everywhere around the India, but especially our bank loan as well.

There's all good success to that startup ecosystem of <unk>.

<unk> startups that have different pros and cons for a company like ours, we have tremendous training a good long career and exciting projects that our employees work with in addition to all the benefits.

Phenomenal campus environment.

We are very comfortable and confident that we can attract the talent and then we can develop and grow it over long periods of time.

I'll address the third one.

You mentioned.

We are absolutely looking for it.

Acquisition opportunities on an ongoing basis.

We've done some.

In the past two or three years that you're aware of on cloud.

SaaS companies.

On areas, which are related to our customer relationship management on areas that are related to technology digital experiences digital design studios and so those are the things we are continuing to look for and look up.

At this stage there are also things which are active in the pipeline, but those things are.

We've discussed in the past happen when all of the elements come together the culture the value and what we can do and scaling it.

As and when they do we will continue with that part of the acquisition.

I'm sorry, the middle question on margins.

So I think the point, you're making that yes, we will see some cost coming back like travel for instance, some of.

The work from Orca, one so some of the work resumes, but having said that I know you've been during all this period, we've seen a very very active.

Active cost management program caustic, our optimization program and that's B mode.

You asked whether this is the onsite offshore automation is a big part of this as well as continuing to look at automation a bot factory.

The pyramid.

I think the number of initiatives, we continue to take the hiring Android for overseas.

And since in the U S as well.

And I think our quality graduate program outside of India now is above 3500 fresh graduates.

Earlier, we wouldn't have had as many so I think we have a lot of.

Continuous work happening on this and you seem quite confident in our margin guidance.

Thank you.

The next question is from BD and our anchor from you and I, who joined us on audio.

And you're on mute yourself.

It's in America or are you able to hear us.

Yeah.

Can you hear me, yes, we can please go ahead.

Yeah, Firstly I would like to congratulate our enforces team for.

Beating the street estimates.

Only one question and a <unk>.

That is what is the one big reason why enforcers helps done better than DCF.

Yeah.

So let me, let me try and address that and maybe gorilla London might have other things to add I think our focus is absolutely on our clients. Today. We are very much building and have built a set of capabilities, which are focused on digital and cloud and those are things that our clients.

Looking at that is the main reason why we see.

Tremendous market share gain that you point.

Point out that we have seen this over the last several quarters, we have consistently making sure that we enhanced our capabilities. So we look at cobalt today pravin.

Robin mentioned equinox Equinox is a capability, which is designed for the completely new world of E Commerce, and we have a leading capability in that sense, a platform, which we can deploy and have deployed at many different client situations. So things like cobalt equinox, the re skilling that we bandwidth.

All of our people when clients work with us they see that those capabilities are relevant and that's the reason why we are seeing all the traction of course. There is also a focus that we have put into all of our teams whether it's on the delivery side or the sales side all of our best function, which is.

Working in a joined up way in one infosys way to make sure that all of this is put together without looking internally only looking externally at those are the reasons working in this one and forces. We're building the new capabilities that is helping us and the real resonance.

To you point out is what we see in terms of our growth and how the overall operating environment is working and that we are really delighted to see that clients are looking to us more and more as their trusted partner.

Yeah.

Thank you.

The next question is from Rami term agenda from the economic times Romita joins us on audio.

Hi.

Now onto this yet from it appears go ahead yeah.

The isolation has been on a very good set of numbers.

My theory is with respect to the retail business. Since you mentioned that there's been like good growth there and there's a lot of aggressive investment happening in this space I would kind of like to understand better the new deals are coming in retail strong what kind of segment, what I know small client demand do you see is in beta.

C. The b to B.

So what is the duration and values such projects that you see on the retail side and I have another made even expected a supply side issues I'm wondering I understand you know because dance. This attrition issue that we're talking about what employee categories in terms of our experience our role do you see the chart.

Our reporting maximum attrition.

And do you think that going slow on Onboarding talent when the pandemic hit our lending won't be paid before the pandemic impacted.

Impacted your ability to deal with the kind of massive demand that youre seeing right now.

Okay.

The retail trends.

As I said earlier.

Most of the increase demand we had seen.

Our in the areas of do newcomers, new new ways of doing digital marketing and supply chain areas and so on but there is lot of focus on hyper personalization.

And these across geographies.

Is that and we can't talk of different banks have been having in the expansion work with existing customers as well as make that new prospects in fact that out of FY 'twenty. Two large deals that we won three of the large deals that are in the retail space. So from that perspective, I think it's been pretty broad based and I said earlier, we expect the tax.

Him to continue.

Our by after several quarters given that the economy picking up and there is lot of pent up demand.

Again from an ASP perspective, it experiment, we predominantly what could be to become the most most of the things we are talking about it from a to b.

But obviously for our plants and the demand is coming from in terms of humor and four 1% increase in demand then that translates into increased <unk>.

94 apartment. So that's what we're seeing in the retail space.

On the supply one of the suppliers.

Supply side doing some work on the on the supply side that if we can leave that patient I mean it is.

Our current expectation that historically in the industry that recently normally high at between three to five year strategic plan.

That said people are still not emotionally connected with the organization and attrition tends to be higher even now in the current application.

They navigated gap, but this quarter, we had about 21% average on LTM basis that recent at eight six years, but probably higher than what we have seen in 'twenty two and there is nominal and it is their typical to what we have seen.

And Oh.

And some of them.

In terms of.

Going slow on Onboarding talent last telecom.

The pandemic during the pandemic do you think that impacted your ability to address the demand that you see right now.

And from our perspective.

Never went largely from a product perspective, we continue to recruit we continue to onboard the people, but to some extent by any immediate.

I think many companies stopped recruiting and pattern, even thereafter demand than the attrition picked up under our Florida across moment of people, but having said that the kind of demand. We're seeing is probably unusually high and in fact, many reports really talk about that kind of demand in the last we are in this kind of demand and growth after 2000 and not something like that.

And parallel reports talk about the tech intensity, increasing from 3% to 5%, but historically, our total spend will be 3% of revenue and now it is increasing to 5% and this is going to be it might be early man.

In that sense I think the demand is significantly higher than what we have historically seen in the past through yet as to some extent in the short term lack of hiring the pandemic may have cost us, but it's a place that and read but there's still a new factors gets deployed a lot of these killing happened and at millennium tenant left out of the <unk>.

Earlier in the next few quarters, we expect this amplification beef and that we can come back to normal limit.

Thank you.

Okay.

Thank you.

The next question is from Multicar Meluka Enterprise story model, because the running of an audio.

Ladies and gentlemen.

My first question is on hiring could you give us some idea about lateral hiring that you're doing and what other kind of what.

What kind of areas that youre looking at in Lac and Heidi like particularly on it.

It is because you say youre seeing a lot of demand for cloud.

So if you could shed some light on diet secondly, if.

If you could tell us more about how well.

Like how is it how youre planning to deal with acquisitions, what areas like companies are looking at and how.

How have the acquisitions in the past have do to deal with the demand that youre seeing right now.

Okay.

Okay in terms of talent on the lateral hiring that we are really looking at hiring people that you can scale.

But many times that there's a shortage of visa Inc. We also look at different areas and then refill them internally.

Digital skills that have been out of but.

Our approach is also about reskilling, our existing people lifestyle. So on an average in the last few quarters, a nearly 80% of all of that incremental demand on digital has been met with incremental Reskilling and that's something we'll continue to focus on.

We don't give specific numbers on number of hiring from a luxury perspective from what from a second perspective, so far we have hired about 25 people and.

And people globally in campuses.

We have increased that to 45000 through the year.

Clearly I talked about the hiring of about 35000 back campus graduates. This year, we have increased to 45.

On the acquisitions are.

As you might have seen over the past few years, we've done acquisitions, which are focused on the SaaS area with different partners capabilities.

To accelerate and we've done acquisitions, which are focused on the public cloud area. We've done acquisitions, which are focused on engineering services and then on experience and design digital design type of capability.

All of those areas are growing extremely well in the market as of what we have learned is run with the careful work that the team has done to make sure operationally integrate well and then drive incremental impact to the client and do enforces those acquisitions.

Working quite well today and they are part of what is helping us to further expand our capabilities in the digital and cloud area.

Thank you.

The next question is from Shilpa admits from the times of India Shilpa joined doesn't video.

Good evening, gentlemen, actually should have gone up substantially to 20% how are you baking in the potential price increases in your client base is a little upfront cost are arguing the trailing constraints to watch I'm convinced pricing.

As you can tell us about the cost optimization, we rushed to normalize that there may be kind of stuck on expenses have gone up. So it is not back filling expenses onto what do you see yourself at the cutting destroyed from an offshoring standpoint.

So I think this question is to you even under deferment acceleration of these people are talking about how there is a.

And the intensity has gone up substantially when you make a strategic refresh.

I shouldn't just finding time Liana <unk>.

Rapidly capture the neuro growth momentum.

I mean, you have so many congratulations on a stellar career.

Our team tasked with Infosys.

What do you charge a fee.

Richards location agnostic and individual agnostic, probably the structure look like.

Okay, Let me start.

With the point, which is around <unk>.

What we're seeing with the acceleration and the demand.

There, yes, we've been fortunate to see a tremendous acceleration with 19% growth this quarter.

The increase in guidance.

Our focus which is really on digital capabilities remain steady as and when we are ready with the next phase of what we want to develop and think we will all be.

T communicate that for now we are seeing a lot of activity, which is going on with the areas we've talked about it.

Cloud areas, the cyber security areas artificial intelligence Iot and building up of capability in that space is really helped us.

On the first part I think was on attrition.

Maybe.

And you want to address that but I don't know.

Can you just repeat that first question the shelf properties.

Yes.

I just wanted to understand how you're making the potential price increases.

And yet our contracts, especially related to upfront.

Unless names or its outcome based pricing because of all the other you're welcome Hendi I don't know if you can talk a little bit.

Migration leavers, how do you plan to normalize that.

On expenses and marketing expenses are going up.

What do you see yourself kind of got into short term and offshoring standpoint, yes.

Yeah sure. So I think on a pricing perspective, I think a more easier said than done who say that they can get to walk up to a client.

This increase.

That's the way the world work, but I think what we're trying to work with many of our sales focus to actually focus on the value, which we bring to our clients.

Really the core of the proposition, we bring an operation.

Information speed to market redundancy customer service net promoter score. These are real tangible dollars. If we can show our clients and that's the way we are leading the conversation there.

Our next ideas, we shouldn't leave any time $10 on the table right. Then you of course have to be competitive but absolutely. This is the right time to make sure that nobody really buckled down on this and continue to focus on looking at talent and being that if clients are looking at that kind of talent they should be paying for that brand, but like I said, because we're going to be a long haul.

It's not a short term one quarter exercise, where you can flip it around.

On cost optimization, I think we're continuing to show across the yard nonbelievers I like I mentioned.

Runs of the pyramid onsite offshore.

Setting up the hubs in the U S that enabled us really uniquely is one of the companies to set up an onsite pyramid right. Historically, the perimeter was only looked at offshore better than one five years to be very very steep now without hubs, we actually can broad based the permit there it can be as colleague pressures and really impact the cost structure of our answer.

<unk> businesses as well so.

In that sense, we're quite confident on that if you look at the onsite offshore mix or whether a threshold I think.

A long run secular trend like I said I mean, there is no other country in the world, which has a million engineering graduates coming out English speaking of right at the end of the day.

Global intensity of demand it will have to come to India and in that sense, where the best place to take care of that so technology I think there can be some one off in quarters, but I think in the long run you should see the contract offer continuing to improve.

I just wanted to thank you for the kind words and Oh on the visa.

I have already been done my interactions with you in terms of your specific question I'll pass it on to Sally.

I think.

But what you mentioned something about location independent individual independent of zinc.

Those are more internet theoretically in a construction.

We've had a very well organized.

A really practical approach to how we run the business in terms of our organization.

Physician structure and what we are now planning to do is to move to the new structure, which we will share our internally.

And then we'll communicate it outside we have an extremely strong set of leaders within enforces Oh. So I'm looking forward to many of them are stepping up in the years to come and of course, we will Miss our president and his insights and real knowledge of the business.

And not just of the of the limit of the business overall and.

In the market as well.

Thank you.

The next question is from Chevron niche in different business standard Giovanni joined doesn't audio.

Good evening gentlemen, congratulations on a strong set of numbers.

This is just a few follow on questions on D. C. Visa. It does look a you know a slightly softer if I have to compare it sequentially or year on year.

And this is just not you I can accenture said the same well most of it came through outsourcing.

Your D. C. S kind of showed the same thing can you give us some color on what's happening in the <unk> segment I have large deals becoming smaller because.

As the market opens up our plans are recalibrating, what theyre looking at.

Because you know if people are coming back to offices and things that maybe coming back to normal. So if you could give some more color on the D. C. Visa the kind of deal that you see over the next few quarters.

I believe this for you.

Ah study from 35 to 45000.

I mean visa.

These are coming from campuses, how do you intend to make sure I mean, David joining over the next few quarters or do you think this will be sufficient also for the kind of demand youre seeing.

We will see some more.

Numbers coming over the next few quarters.

And then one final one for you you said that they're on.

Manage this quarter really well assuming.

Oh Boy you hadn't travel starts oddly enough deals in your hands to maintain this kind of margin movement moving to.

Thanks, Giovanni I think on the large deals.

The first first point from our perspective is that.

The pipeline is in very good shape.

And number two <unk>, one 5 billion in the field is extremely strong as Tony mentioned at 22 deals.

A very large number of deals in terms of large deals the actual number of DS.

And we also see as we look back.

Back to last year or last quarter.

Continuing to see progression as we see the number of deals in addition to the value of the deals.

What we did have within our mix.

In the year ago quarter of course.

Jim mentioned earlier was one of our Mega deals.

All sorts of deals as I was sharing a we see are not predictable in each quarter. So if we look much more at the overall pipeline and the intensity that we're seeing in the market. There is a real interest in digital transformation is a real interest in working with us.

Because we've built these capabilities.

We have seen a good momentum in the last few quarters.

The real test for us as we have increased our guidance for the full year and that gives us a way to demonstrate that we are confident that the growth is looking good and the <unk>.

Coming quarters as well.

Yeah Yeah.

In terms of a number of employees I think at this stage that we feel based on our own assessment.

Assessment of the business demand at 45000 would be adequate but they are very high daily system be keep on forecasting them on a weekly basis.

Failing to meet the tendency will be more than happy to do that if you recall last quarter I talked about the overall 30 photos and hiring in India. A span of three months have increased to 45000. So we.

We will continue to monitor duplication and if there is a need there will be more and will not hesitate to add more people.

Thank you.

The next question is from Frankel for Telecom writer Concord Centre. His question on message I'll read it out for him.

Question is for provision and Selim can you tell us if hiring is becoming difficult in the current demand environment.

Have good talent become more extensive both among pressure and in lateral hiring and how does that affect margins.

Yes.

Obviously.

And obviously wherever in not that Alan based in India, and our doctors to talent and today the ability to recruit in a remote manner also gives us that scalability.

And we have also been using our in vitro and other online assessment and other thing is that the rate policy of people, but from our perspective.

Thank God, we are able to get the kind of volatility and there is an extensive focus on training.

We have probably one of the most.

Most sought after training in Infosys, they trained people or four to five months and.

We have probably the best scores in the industry. So we are not Ah.

Worried about the quality of talent that we're able to money.

Thank you.

Next question is from site issuer from the informant phase joined Bergen audio.

Good evening.

My first question is supposedly.

Do you see any fundamental change in the pricing is pretty tough because and I know do you see the enemies to gain sharing that is then the service provider has.

Speaking mode.

More games from the ease of exercising beds, because in digital deals youre, not adding new values and also in terms of our cost cutting.

Actually they're using cost for the client. So do you see a fundamental change in the banking and the mcveigh the gain sharing elements, becoming more and more prominent and now my question is to.

Uh huh.

On domestic fusion inhibitor and so when.

When you're talking about the third quarter has now October December quarter become a.

Historically tend to be a weak quarter in APAC.

Outsourcing.

Hum.

I I mean.

Truly becoming a morning, well listen living and also with work from home to growing more and more prominent.

Can we see that October December quarter is becoming like seasonally weak is it now a thing of the past and how do you see the initial traction in this quarter.

So let me start with the view on gain sharing and different elements of pricing there.

Today in the market, we don't see that.

That much difference, let's say from the last few quarters in that in that specific area. There's always discussions with clients a small percentage of clients, which relate to gain sharing whether it's on.

Value in the transformation are on.

Cost in terms of reduction, but it's not a large percentage of our clients and usually these sorts of things are range bound because there's some possibility of upside, but usually capped if if he ever and there's all sorts of things, but there's been no big change that we've seen.

It certainly does increase the gain sharing or it has gone away at a small percentage of the always have that discussion.

Yeah in terms of quarter three in Continental Europe to Nuclearize Ah, it's very early.

Try to compare with what we have historically seen a because of the pent up demand and ramp ups that are happening maybe this quarter pre maybe different from the previous historical productivity that they have seen in the past.

Having said that there is this element of our love we have to wait and watch.

In the past as Mandela.

To do with demand.

Motorola day holiday seasonality, we don't have a view on that at this stage, but there might be that element of it but in general I think you're right I mean, maybe this quarter.

The theory to date, probably fundamentally different than what we have seen.

Okay.

Thank you.

The next question is from <unk> Malik from business debate with my grandfather and audio.

Yeah, good evening gentlemen.

Congratulations on a very good quarter I wanted to ask Mr. Patrick on the large T. Signing I know, it's been asked before but from here it's.

It's been a fairly good quarter at over 2 billion dollar value.

For the large deal signings, but from here I wanted to understand whether the momentum for these kind of deals is going to continue, especially with markets opening up and digitization spend Casper analysts need go down, especially in the remote all about fit.

The next few questions are on the hiring front, whether the cost of talent acquisition has really gone up.

Considering the kind of environment, we are in right now and this is impacted your margin so far.

If you could give any indicator finger she goes on what could be the percentage of lateral hires but the rest of the financial year.

Again, one more important question on the you know.

Return to work that off some employees had reached out to us from the adult organization, saying that they've been asked to report to their job you know office locations from their hometowns, they've been asked to them I get back so what kind of target has infosys set in on return to work see by this your Fang Baidu.

And also about your hiring plans in the global markets like Canada, or I should say set up all our digital development Digitization development Center and another such market like U S. So what are your plans to add into global markets on dieting Frank Yeah.

That would be.

Okay. Thanks for the questions.

Let me start on the large deals.

The Oh. The question you had about what is the type of evolution of that.

My own sense, which of our shared before is.

We see a pipeline of large deals are very strong and we see the digital transformation work is still something that clients are looking at and we did in this quarter signed 22 deals in our large deals which is these are about $15 million and we see that clients are.

Looking at us because we are well positioned in these areas and capability to help them with their digital transformation.

Yes, there is changes in the environment.

With the initial focus on work from home and so on a globally, but there's still a tremendous amount of work that needs to be done for large enterprises as they become much more online and digital not just with their employees and their own customers. The way they are.

Connecting with their suppliers and the way they want to scale their business.

And there's also a tremendous amount of work on the cloud that many of these companies are driving too. So at this stage, we see a good pipeline for that and a good traction for the large deals.

On the <unk> trend.

I mean basically from our perspective.

We are giving flexibility to people.

I mean today more than 50% of the people are in tier two tier three cities, where we don't have any development center.

And we're asking them to return to work with Libya, giving them flexible people.

The work daily basis, near SBC span that equate to work, but as I said earlier at this stage is newly voluntary we are not really forcing anyone to come back to us.

The application will have one and one 5000 per ton.

There's a dependency on the nature of projects that are dependent on planted by main sometimes there's a regulatory requirement at all.

This has really come into play in terms of location there.

I expect that our people to work.

From our perspective, the only thing that is clear is that there will be a hybrid whether there'll be a lot of activity for people.

Like that 1% paid yeah, who will have the BMO fees, what life is a nice taken state of the product everything will depend on the nature of the product plant equipment and so on this basis fast evolving so we have a very good framework.

Our ability to react positively.

It would be very confident about it.

And the playbook is very flexible so we're well prepared for whatever the mentality of deprecation is still unfolding.

I wanted to ask about the cost of talent acquisition also in terms of Libre lighting's, what presently jogger not of time, we'll have to take your question later, but I'm really sorry, you can email US later, if additional questions no problem. Thank you.

The last question. This evening is from around <unk> in the room from T V nine who joined us on audio.

Yeah.

Okay.

Good evening some.

Just to go to.

Three questions could you give some.

Idea about water happening as far as that particular project was concerned the I D. Total project by when do you expect it to be formally completed a second question is whether any payment has been received on that particular contract and there has been some speculation doing the rounds.

It does seem that the.

There could be some kind of a penalty clause be boost so could you throw some light on that and the last one is relating to these non deeds recently, we did come across some situations where the market regulators you do he clamped down.

Because those 30, unsavory incidents, which took place where information that listening to notch client deals lost share.

Sure.

Perhaps rivals and that led to a situation where the it gave an indication that perhaps.

Things are a little bit.

Our borders so what have you done in terms of stepping up to Brazil, and ensuring that.

Matters in terms of pricing and how you are you do put through your business et cetera that doesn't go out and it's not shared and people do tend to make money all of that and E.

Bringing some kind of a body major name for the institution.

Thanks.

On the income tax product.

As we said earlier that we have seen significant progress on the income tax exempt bonds already available narrative because it can compound of element.

We are continuously working on improving the user experience by working with the stakeholders.

There is still some pending fund categories, which are available in the airport that we're working to expeditiously and deliver.

There's also some new fund connectivity is not available in their network and that will take off rather complicated whatever kind of enable and be an important.

So this continues to be a top priority for us and that will ensure that we're able to deliver and meet their expectations in a short period of time.

In terms of payment penalties that we typically don't comment on that.

And I guess on the cleansing others not linked.

Yeah, Yeah, that's great.

Costs are recouped.

And about a <unk> or whatever.

Okay.

Hey, Mark.

Infosys is not a part of it.

Yeah.

Uh huh.

Okay.

Alright.

But another measure of it.

Got it.

Okay.

Yeah. So I think like I said this is a matter of games on a former employee named by SEBI and the company is not a party to the matter and we have a very strong code of conduct related to all this in an investigation process that is required.

Yeah.

Yeah.

Thank you.

With that we come to an end of this Q&A, we thank our friends from media for being part of this restaurant friends.

Thank you Felipe Praveen near London for being here today.

Thank you. Thank you. Thank you everyone.

Yeah.

Okay.

Before we conclude this.

Please note that the archived webcast of the press conference will be available on the Infosys website and on our Youtube channel later to be.

We request our on ground friends from media to join US for some high tea outside thank you once again have a lovely evening.

Okay.

[music].