Q2 2023 Infosys Ltd Earnings Press Conference
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Well very good evening, everyone and thank you for joining us physically this time at our second quarter results Press Conference. My name is Rishi and on behalf of Infosys I'd like to welcome all of you our friends from media will lead us from Infosys.
We are delighted to host you today.
A couple of house rules before we stopped.
We have a lot of friends from media present today. So I will request one question from each media house like I always do.
And so that we can accommodate everyone over the next one.
With that let me invite our chief Executive Officer, Mr. Felipe <unk> for his opening remarks.
Got it.
Okay.
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Thanks, Thanks, Rishi good afternoon and welcome.
Always good to have all of you on the campus and I'm sure you're also enjoying being back in person and being at a campus. So thank you for being here.
Our Q2 performance was strong with year on year growth at 18, 8% and sequential at 4% in constant currency.
Growth in Q2 was broad based with all industries.
And geographies growing in double digits in constant currency.
This momentum is accompanied by a strong pipeline of large deals.
And the highest large deal value in the last seven quarters at $2 7 billion.
54% of this is net new.
Okay.
These elements are a clear reflection of the deeply differentiated digital and cloud capabilities. We have developed that are highly relevant for our clients strategic priorities.
Our digital revenues are now 61, 8% of our overall revenue.
They grew at 31, 2% in the quarter.
Constant currency terms.
While digital continues to see strong growth rates, we are seeing this quarter acceleration in the growth trajectory of our core services.
This is due to our industry, leading automation capabilities and reflects an interest among clients.
Clients towards cost optimization programs.
We also see this in our large deal pipeline with strong focus on cost reduction programs. In addition to the digital transformation programs in the pipeline.
While we generally do not share the specific amount of our cloud revenue.
We are delighted to share that in Q2.
Cloud revenue was larger than $1 billion.
Joanne tremendous strength of our cloud services, especially our industry, leading cobalt capability.
Yeah.
Our strong growth was accompanied by operating margin expansion of 150 basis points, maybe at an operating margin in the quarter of 21, 5%.
This stemmed from cost efficiencies optimization, and large deals and currency benefits.
I'll, let Christian has been decreasing now for three quarters on a quarterly annualized basis, including now in Q2, and we see this trend along a downward trajectory.
In keeping with our capital allocation policy, the board has announced a share buyback.
<unk> 9300 crores.
And then in denim dividend of approximately <unk> 6940 crores.
With that let me open it up for questions.
Over to you.
Hello, Joe.
Joining me today is Mr Kneeland, Roy Chief Financial Officer of Infosys.
With that we'll open up for questions. The first question is from reducing from CNBC deviating.
Oh, hi sell them here.
A quick question on your guidance that you've given up from 15% to 16% of revenue you've tightened it further.
To about 14% to 16% the upper end remains the same but if you could give us a sense on what made you tightened the.
The guidance and also on your share buyback you have the option to go all the way up to 18000 as we understand why capped at about 9000 or that you've done.
So on on the guidance.
We've had an incredible large deal performance in this quarter $2 7 billion.
Strong momentum 18, 8% growth in the quarter.
Continue to see good traction we also see that there is some caution last time you had mentioned that we saw some caution in mortgages in financial services, we talked about retail we now see some caution in high Tech and telecom are keeping all of those factors the positive.
Factors in the global macro factors, we are <unk>.
<unk> to make our guidance narrow at the higher end of the band that we had and so it was 14% to 16 and now it's 15% to 16.
On the share buyback, let me the question in London to address that yeah. So on the share buyback of course, the board considered a lot of factors, but coming to your specific point on the maximum since it's an open market off of its limited to 15% of the share capital in reserves, which.
Which is about 9400 odd crores.
So we leave.
The board has decided a figure of 9300.
Thank you.
The next question is from Alicia from ETE now and initial center question on tax.
It has supported the margin performance what are the levers to improve margins here Ron.
Aylwin is strong at $2 7 billion.
Going forward do you expect clients to cut expense of this run rate of over $2 billion will that continue.
FY 'twenty four also see double digit growth.
Let me start with a couple of them the margin the London come back on.
On the deal wins I think this is an incredible performance.
The company $2 7 billion is a very large number.
We have a very strong focus on large deals and 54% being net new that gives us a really good platform for what we see in the future now allows deals. We've always maintained that these are volatile in some quarters than others. Some although these are not.
Any predictable outcome, but in general if you look over a four quarter period, we have a fairly good large deal momentum our pipeline for large deals remains quite strong today and it's in a good position. So we feel comfortable with where we are in the market just to add the macro comments that I made in the earlier question those obviously still hold.
Yes, so on the margin we've improved from 20.0 to $21 five sequentially, which is 150 basis points of improvement.
We got 70 basis points out of that because of the currency benefit.
All currencies versus the dollar as you know they appreciated as well and of course, there was a cost cross currency impact, but that gave US 70 bps. We got 90 basis points from cost optimizations and of course, you're aware of the lever we deploy in terms of the pyramid in terms of automation.
In terms of onsite offshore pricing so between that large deal optimizations.
Other costs, which we have been able to take out our partly offset by utilization. We got about 90 bps from there. We've got about 40 bps from reducing our sub cons again, a cost lever, which we've been trying to attack that gave US 40 bps and this was offset by about 40 bps some comp related because some of our competitor a rollout in July as we mentioned so all in all we got to 150 base.
At this point of improvement you can see from the guidance perspective, and as we had mentioned it last.
Earnings call. We had said we will be at the bottom end of our 'twenty one 'twenty three.
Guidance, we have now looking at our first half performance.
For this year at least tighten that to 21% to 22%.
We expect to be at the bottom end of that band.
Thank you.
The next question also in Texas from BQ Prime Sujit manga tasks for Sally.
Elaborate on the demand environment in the U S and Europe in context of the geopolitical events in Europe and macroeconomic challenges seen in the U S. What is the exposure to Europe , especially Germany, and how do you see the <unk> pipeline and from the Linden similar question on margins again, how do you see the trajectory for margins given weak traditional each too and what is the kind of.
Leverage available with respect to bench utilization.
So on the demand environment.
What we see is on the macro front, what I shared earlier, which is weird.
<unk> indicated last time, we start have started to see some concerns in the mortgage side in financial services.
The retail industry.
We're seeing this time some concerns on Hy Tech and telecom industry. In addition to those and these are more on the discretionary part of our pipeline.
We also at the same time seeing a strong large deal pipeline.
Gives us some confidence.
We've pivoted and I think the market itself is also pivoting of the clients.
There's more and more interest in automation and cost efficiency, and we see that coming through within our pipeline.
Seen growth both in digital.
30% and in call, which shows that both of our engines are working quite well.
In terms of the U S and Europe .
In Q2, we had a very strong growth in Europe over 30% strong growth in the U S or 15%.
Continue to see the pipeline between both of those geographies today, but also keeping in mind that we are being watchful given the macro environment developing.
So on the margins as we look at second half we've ended the first half at about 27% and like we've guided at the bottom end of the 21% 22% of gross margins for the second half will have to go up and of course, if we have a leave us in terms of our utilization, which is under factors mentioned because we are really at the bottom end of our youth.
<unk> vision that we put a lot of pressure into the system now they are sitting on the bench, but over a period of time. They will start getting deployed. So this will become a tailwind as attrition starts coming down of course, this will be a benefit in terms of strict salaries.
That's one of the other thing that's helping us. So I think we've in this range of 'twenty, one or 'twenty, two we're quite comfortable for the full year as well.
Thank you.
First question is from the <unk> business from <unk> Gupta.
Question for Sally.
Europe's growth has been great with 25 constant currency group is there actually no issue with client budgets for the next year, Amit the fears of recession and funnel engine operationally. The performance has been great. What were the key factors behind this and the outlook ahead.
On Europe , I think we've added.
<unk> had a very good traction in Europe for the last several quarters and that has shown again in this quarter's growth number.
We continue to see the pipeline.
Of large deals is strong, but we're also cautious and watching the macro development, but today, our pipeline looks good and our guidance for the full year. Therefore is at 15% to 16%.
Operationally <unk> operational of course, as we have maintained because we have a good margin story, but I think even beyond that our ability to absorb pressures in making sure that theyre trained theyre picking up new skills, putting them into projects.
And then over a period of time without rotating them. So because this talent pipeline for US we knew in the long run was the only way this industry would grow right other than rotational jud.
And therefore in fact in the first half we've already done I think close to 40000 of the pressures across the company in all streams.
Quite hopeful in terms of absorbing the fishers putting them.
Through their paces, and then putting them into larger deals and other deals as well. So that's been a big learning for us during this entire process.
Thank you. The next question is from Chandra from money control.
Yeah.
I just wanted to ask you about the net employee addition, number I mean, its usually a good leading indicator of growth.
That is coming.
And I think which is what.
Compared with 21000 in the previous quarter.
What does it say about the <unk>.
Going ahead, I mean, because on the one hand, you sound confident but is this also a sign of a question. What are you hearing from clients in conversations because other companies are seeing can you see in Yoghurt. The discussion is only about how they're going to manage the window. So if you can give us a sense. If you know what youre hearing from North America as well as yoga.
A question on the margin guidance.
Kind of guy tended to be operating at a time when supply side challenges are coming down again, how should we read this other growth constraints, but I think <unk>.
And if you can also tell us about why you're opting for a market buy back for the second time, because even the last time.
Sure, who will always felt it was a negative move because it really doesn't benefit them to value offering to the market buyback and one question for the heat chart had on moonlighting input.
<unk> can also in doubt of Mrs to its employees on how they should not do time, but if you can give us your views on moonlighting.
Thanks Sandra.
On the first question I think 10000 is a very strong net addition for us on top of the 20000.
That we had in the last quarter, having said that.
What we see with clients.
In the industry that I was referring to before.
For example, mortgages in financial services.
Lots of Hi Tech or telecom.
We see more caution in the way that the buyers the clients are looking at services.
You also see some impact on discretionary spend.
At the same time, our pipeline is extremely large we had a very strong large deals number for this.
<unk> this quarter.
The way we are looking at it is we are making sure that we support our clients as they are looking for their growth transformation programs.
And now more and more for their cost efficiency.
Deploying our automation services those programs.
And our pipeline has.
Sean that there are more and more of those types of activities as well.
Our view is we already in this macro environment.
All types of client work, whether it focuses on digital and growth whether it focuses on cost.
And yet we want to be careful that we are cognizant of what's going on with the macro environment and make sure that we go into this watchful, but that's how we are seeing this progression happened at this stage.
Alright.
Alright.
Okay.
I'll repeat the full answer.
Yes.
Okay.
Okay.
And I'll repeat the whole thing will take whatever meaning that it has.
So on the buyback I think.
Firstly, we have a very predictable.
Location policy, which we believe is really best in class. It has a five year policy from FY 'twenty two FY 'twenty fall. We said, we will return back 85% of our free cash flows.
So it's a very predictable policy, it's got a different element and it's got a buyback and.
An option also to do special dividends and therefore, we also look at over this period, our cash flows change and therefore, how do we give back money in terms of both dividends and buybacks or a special dividend and therefore would be auto honestly, how much cash on the balance sheet. So it's not about.
Finishing our cash day, one so we face all this out and of course, one of the ways you can do it.
Tender offer Ottawa and open market offer and you've seen our Boston fact last door open market not the last one last deal. We've done open market offers and the board feel looking at listings in the U S irregular.
Regulatory concern EPS accretion that it would be better to go for an open market offers so they look at other considerations as well.
And we decided to open up the line.
On the margin guidance I, just mentioned the CBR 27, right at one and.
And we're like we said, we're going to be a 'twenty one to 'twenty two at the bottom end with 91. So mathematically we would have to be probably closer to 21.4 something to even 'twenty. One. So we're looking at margin lever is going ahead of course as we've talked about there will be some abatement.
From the attrition side of cost.
Same site headwinds I've got a follow up because it is a seasonally weak quarter. As you mentioned, we will have some headwinds coming from furloughs and lower working days and which are some of these we will try to offset through our cost optimization et cetera, and therefore like we said the 'twenty one to 'twenty floors, but narrow bandwidth will be comfortable with bradesco.
Okay.
On that let me address it.
The way.
One of the things that our company has always focused on is making sure that we have.
Real attention to learning opportunities and generally opportunities for all of our employees.
And we've always encouraged that employees, who have that sort of a mindset within the company.
In fact within the company we've set up over the last several years are not now not last week over the last several years.
Platform, which we call accelerated to which.
Employees can look at what we call internally gig work different projects.
Outside of the main main work.
On an average quarter over 4000 people apply for this.
600 is elected as something that is active within the company.
Now four gig opportunities in the external environment.
We support the aspirations of our employees to none beyond their work, we will support them to work on certain gig projects.
After the prior approval of the managers. We are also developing more comprehensive policies for that while ensuring contractual and confidentiality commitments are fully respected.
However to be clear.
Do not support dual employment.
Thank you Chandra.
We will come back to you Tanja will come back to Sandra Please.
Okay.
I don't I don't have the information on the processes.
We have found in the past.
Employees, who are doing a blatant work in two specific company and with his confidentiality issues, we have let go with them.
In the in this in the last 12 months, but I don't have the data.
I don't have the data, but we can certainly get it to you.
Thanks Ginger.
Next question is from Shilpa admits from the times of India.
Infosys believes in converting adversity into opportunity what are the two or three things that you would do differently in a probability of uncertain event, especially when the client decision, making velocity has slowed down.
My second question is on body BPM very fuel subsidiaries are fighting up you and Mr. I did internal review two months back on different subsidiaries.
Are you taking a hard look at some of them are now folding some of them.
Sorry could you just repeat the first one please influences believes in converting adversity into an opportunity what are the two or three things that you would do differently.
And certain events are panning out, especially in terms of macroeconomic indicators.
Client decision, making velocity slowing down.
And my third question is enforced lull that started collapsing layers.
Recently, we've seen some of the seniors are put onto that some of them are loved golf due to account related challenges how do you plan to motivate this back, especially when.
We hear that that it would be out.
Jill seven into power has still not been going down.
Okay.
Start with the first one I think.
It is a question about how do we convert.
In this environment.
Current situation to what Infosys can do best.
I think that's a very critical.
Sort of buoyant.
What we are seeing in this environment is.
The capabilities that enforces has we have a very strong set of capabilities in digital and cloud and we are seeing good traction in growth on those.
Also have.
Very good capabilities on automation, leveraging artificial intelligence and machine learning and efficiency and we are seeing a very good traction on the cost programs, where our clients are looking at efficiency. So what what our approaches we want to make sure that both of those.
And both of those engines out available to clients, depending on what situation. They are in and as the macro developed because of the macro will change.
There could be positive a stimulant there could be negative stimulants, so that things, we don't know, but we have both of these engines, which are working well and we believe that that will support us.
As we look at it in a careful way as we go through the next.
The period of time.
The second one was about subsidiaries.
Do you want to take that.
We review subsidiary every quarter, it's not as if it's an annual exercise in fact.
We have our best subsidiaries banner here Andrew is there other area.
I mean, that's where we continue to push to have a performance. There's no question about it the way we get pushed so that's part of the game, but I think we are all doing very well there are a lot of synergy benefits.
Ben across their entire Dx World Mongolian now across Europe and India.
It's now in the U S and across it and it's a very large platform for us to take to our clients on the experience. So I think we have no concerns daily.
And on the media.
I'm not aware of people on sabbatical, we have I think.
People who are.
We have internal tracking for example, connecting with our employees and we track what we call our engagement scores and we have seen in the steady.
Steady and good increase with high engagement scores across our company we are seeing.
Connect where people are seeing that there is a new set of policies and initiatives that our HR team has rolled out for leadership development for skilling for making sure that there is much more awareness and support and the time during COVID-19 both from a medical.
But also from.
Mental health perspective, so we're seeing a lot of traction.
See any of those leavers being.
Something which is of concern is always something that is being watched that and in fact, we are announcing last three quarters of attrition coming down quite significantly each quarter in Q2, it was down by over another two points in the previous quarter. So we think some of the initiatives that were put in place are starting to have.
An impact and we will continue to drive those initiatives ahead.
Thank you. The next question is from Cynosure from economic times.
Hello.
So you had said that you.
Youre seeing cautioning and mortgages financial services retail and that's catching onto a high tech and telecom as well. So can you actually tell us like better or these are discretionary spends that are getting affected or do you see that total expense itself.
Being handed back bike lanes and also one more question too.
Millions of artists.
We are also hearing news about downloading Billy ill finish up with Rachel.
On the other hand, you've already reached 40000 target in terms of rationality. So how should we read into this because we are getting the board seen people who got off was in 2021 are not onboard yet so did infosys.
Probably overestimated demand.
Okay.
So on the first one I think.
<unk>.
What we're seeing in those specific industries that I mentioned with its mortgages are high tech or the others.
There is an impact on the discretionary spend right now.
What we're also seeing is this stepping back from all of that.
Many large companies are also looking at being more cost efficient.
We see that.
Given that we have a strength in digital we have a strength in transformation, we have a strength in discretionary and we have a strength in.
Automation and cost efficiency that we are able to support clients on both of those engine, but we do see those areas, where we see some caution.
In our model the discretionary.
On the pressure side I think like I said, we've already done 40000, and we started we told you at 50000, So I don't think theres been any delay, particularly that we have.
Computer to put in MISO, a lot of people are going to MISO and in fact in physical it's a good thing we've opened up the campus and it's a big attraction for our talent to go to the physical training of MISO and then go to the leases.
We are quite tracking as per our plan in fact like I said, our 10000 net adds probably has the highest in the industry even.
Okay.
I mean, it will go up we have yeah, we haven't given out a number is yet but of course, the 50 will go up.
Yes.
Thank you.
The next question is from the Hindu business line has EPS would have been.
So what percentage of your workforce is back to the offices. What's your play there do you intend to get employees back to offices.
And second question on attrition.
So I have tried to cut it down too.
What's helping you.
You achieved it and do you see more moderation going forward. Thank you.
On the return to work.
I was looking at.
We're looking at this.
Every week last week.
Across EMEA, we had about 45000 employees in the office at any given time not all the five days, but at different times.
And that's a huge number given the heavy.
Everyone was in this industry a few months ago and what we are finding is.
The approach we've taken so far which is essentially we've been extremely supportive of our employees we've been extremely soft.
<unk> is a flexible approach has been well received and it's working.
We're seeing that this is now gradually increasing.
A couple of weeks ago I was in the <unk>.
D C. In fact, rather and I were both there we could see a lot of engagement with employees as we are connected with a several of them.
My sense is over time, we will.
Mick and all the support necessary so employees can more and more employees can come back.
There are of course, several client situations, which require specific action. So those will be followed as the clients are requiring it but where we are able to provide some flexibility we will continue to provide flexibility.
On the attrition there was several initiatives that krish and our HR team rolled out.
Maybe now 12 18 months ago, and I think we had shared with you.
So some of those.
It is one of them for example.
There is a very well defined path in terms of Korea in the first several years of an employee and the steps are clearly defined and well understood.
A big Big.
So positive for employees, but there are no surprises then.
Any more for them, there's a lot of emphasis on.
Leadership development and scaling that our programs with large.
Global universities, which the company runs which gives employees the ability to self improve and then we have our online platform, which allows employees to do it. So there are several of those initiatives.
And as a combination of that it's worth the trend.
Last three quarters is as good a nice sensors. These initiatives will continue to give us a minute.
Thank you.
Question is from Reuters news feed to Raman.
Bringing so just wanted to know.
Was there any Donald.
Promotions this quarter.
But would you be.
Able to help me with your benchmark for the light duty I just wanted to know.
Mike.
Okay.
This is Luke junk of DS and also want to know about the smaller with each one of these because you don't know how many give all the details on the smaller ones.
Also.
Last minute by backing on Spain.
The open market buying it looks like.
From the peak in terms of.
Oh.
I just wanted to know like wasn't any pressure in terms of because normally you.
Concerns by Barclays.
Thank you.
Come out with the earnings announcement. So this was a loss.
So there was.
Was there any delay.
Concentration about that.
No.
And last one is like.
Are there any reorganization going on in the company.
Exactly.
That's been the backfill happening with your questions.
Are you looking at anything.
Thank you.
I'll start with the first one I think on large deals we had 27 lodging so for us large deals.
<unk>, which are more than $50 million in value.
And so it's a very significant size of the deal we don't.
Give out any specific deal.
Give you a sense that a 27 that number can give you a sense given.
The overall value of the large deals.
On the buyback, let me start in the London might want to add.
The ad.
A very well defined capital allocation policy.
Followed.
All of the reviews internally and externally.
That.
We've seen no unusual activity whatever.
The phrase you used it was.
Well informed decision by the board and.
We think it's going to be a huge huge positive because we have our capital return approach through this policy.
And then Tom can add a little bit on that in a second.
Ravi first with Abbvie is a good friend I wish him all the best in his new endeavors.
Infosys has.
Incredible leadership talent in my mind.
So over time, we will make sure.
That all of the activities.
<unk>.
In the best interest of the clients the employees in the company.
Anything on that.
Like I said earlier, our capital allocation is very predictable, we said, 85% in fact last year, we had given 73%. So I think if you have to catch up to 85 buyback was most natural way to do it. So I don't think that any pressure or anything and that's the beauty of our policy so predictable.
Thank you.
The next question is from below Paul from business today.
Yes.
And on the hiring of the Fisher. So there's a large number of people that you've hired as planned.
Just wanted to ask what kind of impact when discussions get onto newer projects how long it was too optimistic.
<unk>.
On the so a hiring of college graduates I think.
Last year, we had done something in the range of 18000 College graduates who joined us.
One of the things that we are extremely good at a known for is our training program and especially and now that everyone is back in person a MISO.
Joining capability. In addition to what we have now which is online. We've also set up training for some of the modules within our different D. C. The delivery centers and so we find that these individuals coming out of that.
And of course this training.
Extremely ready to start to be productive and they help us tremendously last year, we had 20% growth Q1 was 22% this quarter, 18% so that needs a tremendous input that we see of new employees joining us.
Thank you.
The next few questions around text.
We have a question from Chevron is shielded from the business standard.
Attrition is still in the 20% range by when do you see this coming down to sub 20%.
On the attrition.
My sense is.
It's come down three quarters in a row for us.
Each quarter sizable large step.
All of the initiatives that have been put in place by the company by the HR leadership.
Starting to eat some benefits over time my sense is we will continue to see more benefits with attrition.
Thank you.
Question is from the New Indian Express.
Any plans to make work from office mandatory of your peers are calling employees back to office or any plans to continue the present work from home model.
Also are there any plans to increase local hiring in the American and European market.
So on that I think what we've seen is.
Over the last several.
Quarters, all of all through Covid.
Work for home work from home approach has been extremely effective.
For our clients.
And for our employees, we have now seen already a lot of our employees coming back.
Put in place in the past.
Very flexible approach.
Employees really add a tremendous amount of choice.
We see this traction week on week on its own.
Increasing all the employees coming back we want to make sure that we build things in the future, which keep this element of flexibility and make sure that there are some client specific needs, we address them, but I'm going to make sure that it's something that our employees are comfortable with.
Thank you.
Next question is from the financial Express.
What is the revenue model for Infosys from five G I, even talked with clients to leverage the opportunity.
There's also another question on moonlighting, which you've already answered.
On <unk> it's.
Really a step change in the world as it is in India.
Infosys, we've developed huge sets of capabilities.
Five G client solutions.
First for the telco industry.
And also.
Use cases, which are for other industries, which are leveraging <unk> for example, retail and financial services.
Logistics warehousing theirs.
Most of these that if you do that we see a huge amount of traction in this business as we look forward and so it's one of the growth drivers that we will see.
Continuing to see in the future.
Thank you. The next question is from CNBC hours.
Are you sensing any hesitation from clients and expanding budgets what is the sentiment of clients in Europe , you mentioned some pressure in <unk> is it likely to worsen.
On the client and.
Environment.
We see the macro.
All of US the information that we need.
So it comes down to us in different formats one.
We have really two big drivers or engines on digital which is growing in Q2 for us and core services, which is also growing.
Both supported by very strong capabilities, whether it's cobalt or automation.
We also see that there are in the macro environment specific.
Areas, where we are more cautious of mortgages in financial services or retail.
Our high Tech some parts of hi tech or telecom.
But at the same time, our large deal pipeline is doing quite well and we see a good traction in this quarter in large deals, which was a $2 7 billion and so all of those are sort of different.
Aspects of what we see in the environment.
Thank you the.
The next question is from taken Harold.
The overall pricing environment are you looking at putting some of the costs to clients, where cross currency movements had an adverse impact will.
With the current pricing path of sustained in the second half of FY 'twenty three.
Yeah, So I think.
Inflation across the world really is quite in a pandemic and a sensor or wherever you're seeing it across geographies.
Both across consumer prices wage inflation and of course, we are going back to many of our clients. One is as part of the clauses, which we have like Cola, sometimes theyre going back as part of our digital pricing trying to demonstrate the value we have been able to bring points since in the cost take out program and part of that how that can be.
We are taking back in terms of pricing and productivity with us. So these are multiple conversations across each client because these clients are unique the ft contracts dnm contract mid cycle contracts new contracts, but the good news is that we have seen firstly a reduction in discounts that very visible that the kind of earlier in this country would have on renewals et cetera have definitely come down and the other hand, we are.
Trying to position ourselves on one increasing our prices on digital rate cuts at the same time, demonstrating the value of this gallon can gift so.
The answer is yes, but this is a very long haul it'll take time, it's not something which we can.
Flip the book.
Every quarter, but this is something which we are seeing some traction.
Thank you. The next question is from the environment.
How do you see the Q3 performance, giving the macro economy situation you've answered. This in case, you want to add anymore.
Just.
I think on Q C. I go back to we don't give quarterly guidance we gave.
Guidance in there we've.
<unk> taken our growth guidance, which has gone from 14 to 16 to 15 to 16, which is at the.
Our higher end of the growth guidance.
Expect site.
Top Edwin.
We expect it to be in the 15% to 16, yes.
Thanks Sandra.
The last question for this evening is from the minutes on.
On the India market given that there has been steady growth of enterprise spend for digital transformation in India out of Infosys expect the domestic market to contribute to coming quarters.
So on that.
Extremely bullish on.
The Indian digital transformation agenda is.
We've done.
Projects, which are really mission critical we can see for example.
On the GSD program.
There's tremendous realization and increase in collection that the government is seeing through digital.
The implementation of a completely new platform. We've seen this year, a similar things with the platforms that we are well positioned.
To do scale digital transformation programs, and we look forward to working with.
Government organizations are private companies.
In that area as appropriate.
Thank you with that we come to an end of the Q&A session.
Tanker friends from media for being part of this press conference. Thank you our leaders from Infosys for being part of the chest conference.
So a little thank you in London.
Before we conclude please note that the archived webcast of this conference will be available on Infosys website and on our Youtube channel later today.
Thank you and please join us with my idea outside.
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