Q4 2024 Infosys Ltd Earnings Call - Press Conference

Yeah.

Mhm.

A very good evening, everyone and thank you for joining infosys its fourth quarter financial results. My name is Rishi and on behalf of Infosys I'd like to welcome all of you today.

As always we request one question from each media house to accommodate everyone over the next town with that.

Let me invite our Chief Executive Officer, Mr. <unk> Parekh for his opening remarks over to you.

Thanks, Rishi good afternoon, and thank you all for being here.

For the financial year 'twenty for our revenue growth was at one 4% in constant currency terms.

Our operating margin for the full year was 27%.

For large deals we had an excellent year and the fourth quarter for the full year. It was at 17 $7 billion and large deals comprising of 90 deals for.

For Q4, we had $4 $5 billion in large deals.

This is the highest ever large deal value in the financial year for us.

For Q4, our year on year revenue growth was flat in constant currency and declined by two 2% quarter on quarter, our operating margin for Q4 was a 20.1%.

We are seeing excellent traction with our clients for generative AI work, we're working on projects across software engineering process optimization customer support advisory services and sales and marketing.

We are working with market, leading open access and closed large language models. As an example in software development. We've generated over 3 million lines of code using one of the generative AI Lodge language models in the public domain.

In several situations we've trained the large language models with client specific data within our projects.

We've put generative AI in our services and develop playbooks for each of our offerings.

We are committed to ethical and responsible use of artificial intelligence. We became the first I T services company globally to achieve the ISO 42001 to 2000 Twenty's. He certification testifying to our commitment to excellence in AI management.

All of this work in AI as part of our Topaz offering and capability.

We are delighted to announce the strategic acquisition of a company in the engineering services space today.

We continue to focus on our margin program, we saw good impact during this financial year.

That we've seen in our results.

As we look at the start of financial year 'twenty five we see the discretionary spending in digital transformation work at the same level.

We see the focus on cost efficiency and consolidation continuing.

Large deal wins in financial year, 'twenty, four will help us in financial year 'twenty five.

With that our revenue growth guidance for the financial year 'twenty five is.

Growth of 1% to 3% in constant currency terms, our operating margin guidance for the financial year 'twenty five is.

20% to 22%.

With that let's open it up for questions. Thank you fill them.

Joining Phil is Mr. <unk>, <unk>, Chief financial Officer of Infosys with that we have the first question from reducing from CNBC deviating too high Sun isn't how any change you know first just on your revenue guidance.

On the lower end, you actually lowered the guidance compared to the previous year now at 1% to 3%.

Give us a sense of what you built into it when you see deal wins have been the highest ever in FY 'twenty for what you expect you know what your conversations with clients has been what the pipeline is looking like an earlier you'd highlighted verticals like high tech be FSA et cetera, showing some weakness I always seeing some improvement there also for the I think now the fifth.

Cortina ROE the head count has been coming down any outlook, you could give us there as well and Oh.

Under your project Maximus.

<unk> been working on expansion of your margins and yet we're seeing in terms of guidance a similar range as the previous year tell us if there's a you know it's a conservative estimate both on the revenue and guidance. Please.

So I'll start with the revenue.

Jerry will comment on a couple of the other points.

On the revenue what we're seeing is the environment in terms of discretionary and digital work is similar to what we've ended in this year.

We also had good traction in large deals some of which will.

Will flow through in the next year, given the duration of those deals.

Keeping that in mind.

Growth guidance for next year.

<unk> is as a band higher than where we finished for this year why the difference is small it's still higher from where you finished this year as we go into the industries. We see for example financial services to see.

A better.

Outflow in the next year compared to the past year.

We see for example, manufacturing, which will have a violent still grow next year, we'll have a slightly lower or slower growth than this year. So there are some puts and takes in terms of different industries and given the outlook with the discretionary spend and digital work remaining same end.

All four focus on cost efficiency and consolidation and we've created that revenue growth guidance.

Yeah. So on the on the net had gone increasingly if you look at it when we started the year, we were at 77% utilization, including trainees.

You know the growth environment also is different at that point in time, we had guided differently. So you know we had to realign some of those factors is a good environment changed.

This has now gone up to 82%, including trainees 80, 315%, excluding Danny that's one of the tax and the Maximus as well our attrition has also come down significantly. So that that's the reason why you see a net head count reduction as we go forward. We always plan looking at what we are exiting in terms of utilization, we are still at 80% to 83% utilization depending on where they are.

Including <unk> excluding <unk>.

So that still gives us some headroom because we've always said, 85% is achievable utilization so that the headroom that we have we look into guidance that we gave so the pre bacon that attrition still remains very very contained at 12, 6%. So you know we have that headroom and we also have changed in the last few years, our hiring model.

So no more hire all the all the freshness of our campus. We hired you know less than half of them from campus and the rest we hired off campuses. So we have that agile model. So we will look at hiring as the year goes through we don't have a number to give at this Monday.

And the question sorry on what the pipeline is looking like you said some of the deal wins from last year will flow into this year, but the new deals and what sort of visibility do you have should the deal pipeline again remains good as you've seen in this.

Past financial year, we did 90 deals at $17 7 billion, we have a good pipeline the deals are more on cost and efficiency and consolidation and that is the team in a large deal pipeline.

Thank you.

The next question is from China, Russia country money control.

Hi, Shannon.

I just wanted to understand you know why is there a divergence between your D C. The numbers and the revenue growth numbers not just for this year, but also for the next fiscal year, because you know if youre talking about God deal wins why is it not translating to revenue growth is they don't run often existing discs.

Recently pure grams, which is by the revenues are getting impacted if you can give us some color on that also you. Another guidance I think it's going to disappoint analyst because notice brokerages would expecting between 2% to 6%. So you know I mean, I will starting conservatively will you kind of view this heavy.

What do you expect the second half to be better James just wanted to ask you on the pricing as well.

Dcs management said that you know one of the levers that we have to use.

Is pricing because they see some opportunities AR days, because there hasn't been a price hike in a while is that something that you're hopeful office and this is also the first time your head count has declined on a full year basis in at least 20 years. So what can we expect with respect to special hiding in EF.

Slide 25.

Let me start off.

On the guidance with the large deal wins.

They're in what we've seen is there's been a good traction with the cost and efficiency and the consolidation nature of large deals.

Whereas we see that digital programs are some discretionary work is still not as visible within the world pricing. So when we combine those two.

The trends are those two views we get the guidance that we've come with which is the guidance as we start the year of 1% to 3%. So from my perspective, we want to make sure that we reflect what we're seeing in the market today now typically at this time of the year.

Have a good sense of the early part of the year and the second part of the year. We have a set of estimates that we work off of we will see how that developed because the macro environment is still got a mixed outlook at this stage, we are very comfortable with where we see a large deal.

And the way we are winning those because we think we are benefiting from the consolidation, but there is the other side, where digital or discretionary is still a bit slower.

Yeah.

Okay.

On the pricing.

If you look at the project Maximus one of the pillars ethylene would explain in the pay of course is the value based selling.

And that drag has done well we are seeing encouraging results. One of the thing that has helped move in this direction as Arne said on inflation right. After many years, you're seeing a increase in entre onset inflation and our clients are therefore, more amenable to having a pricing discussion.

You had a second question on sorry hiring yeah. So as I said earlier in our hiring model has has changed significantly in last few quarters. The last few years. We are now in a more agile model off campus hiring we do have more than half the campus, adding at times from off campuses right, a fresher hiring of campuses and we will embark on that at this point in time, we are.

At 82% utilization, we still have headroom on that.

Plus the attrition is very low so we have not decided on the campus hiring numbers at this point.

Sure.

Uh huh.

80, 480 phase what we will say this is a reasonable comfort level. Thank you Sandra and the next question is from shipper needs from the times of India.

Can you help us understand how are you reading the U S environment now that you have the robust job growth.

Seeing higher inflation and how do you see this demand environment I'll be missing something in reading. This I have few more questions. I think if you can help us with that as much.

On the U S. I think as you've seen we had a slower outlook in U S. Both in Q4 and the full year.

U S. There are different things by different industries, So first before that at the higher level.

With this sort of a economic situation.

The expectation on what will happen with interest rates is also influx and so that you know.

Some of the capital intensive businesses will benefit from that that has some constraints to it.

Others. We have seen for example, we commented in the last couple of quarters on Telco and high Tech also in financial services, where there were places where there was concerns of slowness.

Those subtle things are visible today, though on financial services, we do see something better in the coming financial year than what we add in the financially that's got it.

Infosys has been very selective in terms of getting hikes. So it's more of a meritocracy and top performers. So I just wanted to understand from you also the emphasis on 10 yards or is it going to be a similar commentary does here as well there's going to be change.

So you know our last campaign was in November we have not decided anything for this year at this point in time.

We'll decide as the year progresses, we have not made any decision on carpet.

First project Maximus last time, the impact was about $30 million now it doesn't update about how six months $6 5 million people, who are affected because of the cybersecurity incident is that an update on the number in terms of how much has been the outgo and secondly is that a management action in terms of.

From Infosys.

On the mechanistic leadership side because of the cybersecurity incident.

So can you repeat the first part I think.

Cash the first parts of last year enforces disclosed about $30 million in terms of the cybersecurity alcohol because of the incident yeah. So on the cyber event, we did have an impact of $30 million last quarter, we have a very small impact this quarter, it's in the range of $78 million.

That's on the cost of all the all the expenses are around around the ediscovery et cetera.

Thanks Shilpa.

We'll come back if there's one thing.

The next question is from Irishman borrow from the business then that ice on it.

Yeah. So.

You mentioned that the trends in discretionary spending and digital transformation remains to seen as such rates too could you just throw some light on that as to.

Do you see some improvement in discretionary spending in some.

Sectors in the in FY 'twenty five.

And.

Is digital transformation spending do you still consider that to be a discretionary spending that is first secondly ah.

Your competitors like Accenture, Dcs et cetera have sort of quantified the ginnie I.

Revenues.

Is there any reason why infosys is unable to quantify that thank you.

So on the first one I think.

The discretionary work or the digital transformation work as as you.

You mentioned he said, it's the outlook remains similar from where we're ending the year. So we don't see that Jane now.

Having said that.

Some of the color by industry.

We see financial services overall is not just digital or discretionary like that.

Is is looking better in the coming year than in the year that's finished.

Manufacturing is looking a little bit slower while it is still growing in this new year compared to the previous year, we had a very strong growth in manufacturing. So there is some.

Defenses.

Industry, but the overall statement still remains on the digital and discretionary.

On the journey.

We haven't.

Absolute leadership position and Jenny a the type of work we're doing for example.

The 3 million lines of code, we've generated through our large language modeling journey II.

He is absolutely industry, leading the projects we are doing the work that we're doing with our partners. So if you look at some of the large tech partners. We are working closely with them to make sure that their platform works in different environments, where whether its a hardware.

Tech platform or like language model platform. So those are the elements that we feel extremely good about we've put all of our service lines into the change of generative AI and we've built playbooks and how that can work.

If you look at the way we've looked at the use cases for example, whether it's in software engineering on process optimization.

On customer support on advisory services on sales sales and marketing. These are detailed use case, which we are working with our with clients on where we're creating already some quite good impact. So my sense is this is a place where we've internally taken a view with topaz of AI first and with our clients.

We have that same sort of our connect and commitment and so we feel good about where we are on January <unk>.

Thank you.

Question is from Reuters News cynosure.

Hi, Hi, gentlemen.

I just wanted Oh is.

Is there any do you expect any incremental from the Mccamish I mean, you've said like you've already shelter around $336 million to $38 million. So and also we are also hearing.

Disclosures from the client side from a fidelity Bank of America and also has that.

Erik did your.

Relationship with any of these plans that his first question and second question today Asia. So you had spoken about the pricing right.

So as you said the onsite days, giving us more room to have these pricing discussions is there any do you see like probably a.

Two 5% is there headroom you're working at with the price hikes. Thank you.

I'll start with the second part of the first question.

Thank <unk>.

Specifically on Mccamish.

We had made.

Our shared disclosure some time back and today in our statements we've add.

Our comprehensive statement, which goes into the points that you're referring to that's the statement that we should be referred to with respect to mccamish on the finance.

The second question or the other.

Pricing on the pricing side as I said, we have seen early and encouraging results on the pricing on the value base pillar of the Maximus.

We have not really quantified as to how much we expect in FY 'twenty, if I O beyond our endeavor of power project Maximus. It in the medium term, we expect to expand margins. So we are getting for that irrespective of which opened in it comes through.

Thank you.

Next question is from some of your book ship from the economic things also.

The cybersecurity incident. This has come at a time when are you expecting more of more number of AI engineer. He predict state. So is it continuing you what is our client concerned because of this event.

Second is I want to know what is the tailwind.

You're getting in Europe.

We're being we are seeing.

Historical high.

Of a decade.

The second question is about your growth in Europe, Yeah, Yeah, Yeah, So I'll start with that I'll come to the other one so.

As you've seen again in Q4 as well for the full year, we had a good growth in our Europe business, we continue to see Europe to be a good market for us as we go ahead. There is of course changes in the economic environment. So we will see how that will affect what the business will look like.

But as a geography, we feel good about parts different countries in Europe at different levels. We have a very good traction for example in the Nordic countries in the past we've done an acquisition. There are subsequently we've add.

Also large client relationships building out there and that that is going quite well for us.

Get another quick first one.

Oh, yeah, the impact on Jenny I predict there on generative AI. It is something that is being built on cloud on data and of course on cyber security, but the work we're doing there when generative AI is really a market leading and we're taking all over.

The learnings into it, especially on the data layer because data has become the critical enabler for making generally to be successful in an enterprise.

AI deployment and so there for example.

Making sure that the access to the data, making sure that the way it is put together and.

Organize making sure that it is used in the right way becomes more and more important.

Thank you.

The next question is from just about there from the mint.

Good evening so.

So you had bought a German company, which has about 180 million in revenue now you have outlined to growth of 1% to 3% for this year.

Considering that you will get 1% of growth from this acquisition are you actually outlining a negative organic growth for the financial year. That's the first question second one is are you looking at bagging large vendor consolidation deals from two of your it services one of which is based in Europe.

During the day are witnessing leadership John at this moment and the last question I have is.

In a meeting with Nomura analysts on I think 12 or 13, you had told them that the leadership bench is deep entrenched that 50% of your 90 S V PS and other have been with the company for more than two decades now what are some of the measures that infosys has taken to retain the status.

Okay I'll just go one by one on the first one.

The first we are very excited with this acquisition, it's a fantastic company in engineering services space, It's a space, where we are doing well.

We think there's enough opportunity with a strategic platform to build out even more in the automotive area.

This acquisition is not included in our guidance and sort of course, we'll wait because the acquisition announced today then it takes some time to close.

And when that happens and then it will be so today's guidance does not include anything of the acquisition.

Uh huh.

I'll go to the last one the one with the leaderships leadership is.

We are really quite fortunate with the leadership team that we have in Infosys.

We have over the last several years.

<unk> had many people within the company move up too high.

Higher and larger roles and they have demonstrated what they can do and how they can deliver and so we see extremely positive with that bench and that we have a huge bench of leaders even at different levels. One of the things that we've done and this is going back several years is focus.

On the leadership development within each like different area of the company, whether it's on the sales side on the delivery side or the functions that work with those and that is helping us its not like something that happened in the last six or 12 months suddenly this is something where people live and then the company for years and years.

That has helped us and what it does is quite unique because that's the real difference of what we do with this one infosys approach when.

When you have a team, let's say the leadership team of the company who've known each other for 10 15 20 years in a professional capacity they have a much better way of working together and that is one of the reasons why we also win so many of these large deals because we know these complex deals how people can work across geographies. So it's a.

Huge huge advantage that enforcers adds which are maybe very few companies may have.

In Q2.

The next question is from her repressor rebounding from the Hindu business line.

Definitely he understands he could give more details on this interest in the E. R&D space conjugate is acquisitions that we have seen to develop the space generally you guys go for building up capabilities organically. So why this inorganic approach and do you think.

With these acquisitions, we'll be able to go for different kinds of deals are you trying to build this expert expertise to get on this is there kind of a clean sport right now in the market is this the kind of approach and given you artifice doing well.

Is this an active effort to reduce dependence on the American market and just given the margin for I think the last complete financially are you have a the margin has been in the lower end of the guidance mandate have provided do you think in the next financial year they'd be possibility to reach top line. Thank you.

So on the engineering services, you're absolutely right. We think it's a very good space and a strategic space as it happens we have a very large business and engineering services already so in that sense. It is not like this will be the main thing that.

Starts engineering services for Infosys. However, it is a strategic acquisition in our space, we want to go further and deeper into the.

They have incredible client relationships and actual work that they're doing and we believe that combined with our depth in engineering services, they adapt and automotive as part of that engineering services, and then a broad client relationships across whether it's in manufacturing medical devices.

<unk> says telco all up applications, where we can put engineering services. This will be a huge multiplier for us so and it's a large ish acquisition for us.

Relative to what we've done so we feel very good and quite quite excited about the acquisition.

On the margin whenever we have given a margin guidance, we have always looked at various factors right. What's the margin that we are exiting it via like exiting at 20% for the full year. We are at 21 21, 7%.

We also look at the competition increases we did the last couple of increase in November So there's a full year effect, which will come in the next year plus the additional comp.

That we will do and then the tailwind in terms of the optimization et cetera are the project maximize that brings in pricing the efficient bit of nearshoring utilization as Taylor, there's a headroom as we discussed earlier in terms of utilization. So we bake in all of those factors and come to our guidance at this point in time, we have given a guidance of 20 to 22, we are not guiding which part of the 20th.

'twenty two it will be it.

Actively trying to reduce dependency on the medical market.

There I think that that question first Europe is doing well as you pointed out for us in the quarter and in the full year.

We also are in it.

Another question, we discussed how we are doing well in some specific parts of Europe also.

For us there.

The U S market is a critical strategic market and it will continue to be a very important market for us. So this is not a reason like the reason is not to do the diversification away from something it has more to build on something that is working well and continue with the U S which is also good.

Like a good size in place for us.

Thanks April.

The next question is from Mackinnon from the New Indian Express.

Good evening gentlemen.

What kind of trends that youre seeing in client budgets are they growing first thing and again you were talking about large deals. So can you give some color on how your small deals are doing now.

How it will be in FY 'twenty.

So on the client budgets, what we're seeing is for example, like the digital work or the discretionary work the trends seem to be similar. So this is not.

Nothing seems to have changed between March and April or as you look out into this financial year.

On some of the industries, we see some changes for example financial services we are seeing.

Slightly better.

Buying situation in the in the current financial year compared to the past one whereas in manufacturing will still be growing we see a slightly slower growth in the next financial year. So the trends in that sense, a different buy by different industry groupings.

What about in small beads like small deals. So first we don't comment on the specific numbers and values of small deals having said that we have a robust.

Small deal business as well this is not a.

All of our revenue, we just comment on it externally because it's something that gives a good indicator of how we're doing with respect of clients on large decisions.

Thanks Omar.

The next question is from Rukmini ROE from fortunate India. Thank you I have two questions. One you have mentioned that in tech data about nearly one 7 million euros in FY 'twenty, what kind of margins is this company coming to you. It is it has it done over the last one year.

Margins of this company. So we don't disclose the margins of acquired entities at this point in time, you would never disclose that but is there some indication is higher than yours.

Don't disclose the margin show and tell.

And then also this saw E. R&D acquisitions that you've done are you have many of mid cap companies that specialize in this vertical right and they are doing their business had very good margins. So what are you up against and how do you see sort of.

Growing this segment then.

Is this the kind of margins that you've come out with too is this going to be something that'll be driving your margins going forward is this a margin driver acquisitions that youre looking at.

So first I mean in terms of the size, it's not something which will tell things in terms of margin in a big way of course, having said that.

Our own business and engineering services also is a good margin business.

We think that client work is a very solid area of work and it has a nice long term potential because of what's happening as you know the automotive companies are completely changing how they look at the building of that cause technologies within it Andrew.

Nearing has within it they already have good expertise and we want to expand on that and expand on that and scale that up so we believe.

With our Infosys global brand, our client relationships and some of the capabilities that we have plus the acquired capability, we will be a leader in this space as we go ahead.

Alright.

Oh.

<unk>.

So I mean, we.

We don't we have an internal are what we call. It a business case, but we don't.

Sure the margin view externally on that.

Okay.

Yeah, So our engineering services.

We have a large business today this will be a nice substantial increase but not a big like is on majority and we will continue to grow that the market.

Addressable market of engineering services is quite large so we feel quite comfortable that we will scale. This thing over the next coming years into a multiple of that size in terms of the engineering services, because we have a good business in that place. Thanks, Rick many.

The next question is from but we need to have with us from the financial Express.

Hi, gentlemen.

So I have a couple of questions on <unk> have you started to have you started to see contributions from those leads to the top line can you give us an approximate number.

Since Covid you had said that flexi hiring has been you've been hiring a lot of like slipping. Okay. So is this happening mainly in the deny SBS.

And.

Your larger deals have been done this but why is there a discrepancy.

Between revenue and margin guidance for FY 'twenty five.

Uh huh.

So I'll start with the first one.

On on Gen AI with the work we are doing is quite comprehensive we don't disclose the revenue element of that work externally. However, what we are doing today is really working.

Cross a large number of projects with several of our clients.

On not just proof of concept, but an actual programs, which they are deploying either across the enterprise. So for example, we're doing things with a bank where they're deploying.

And instance of regenerative AI allows language model as our knowledge assistant and the other company, helping them with that so those are large programs with generative yet, but we don't disclose that number externally on the second one it was about flexible hiring and I was at about Jennie.

<unk> AI and flexible adding.

And as I said, that's one of the question.

So there.

Theres not a connection in that sense, meaning they're flexible hiring was something we started.

Independently to be more agile.

Generative AI is something where as an example, we have trained.

Vast majority of our employees at different levels of training from awareness to depth.

Eight out of 10 of our employees are now shamed into generative yet, but it is not to do with the flexible hiring.

Thank you.

Under my.

In front of them.

Oh yeah.

So as I said earlier, you know whenever we've given margin guidance, we have baked into multiple factors. What is the margin exit trajectory that we have had we are exiting the year with 27 for the full year, 21% for the for the quarter and then we bake in what are the competition and headwinds that we're going to get we have a headwind in terms of you know we did.

The large compensation increase in November so the full year impact is going to come now as well as daily silicones. So those other headwinds in terms of tailwind the growth that comes in you know in terms of all the all the effort that we're putting in Maximus.

Elsewhere as well as pricing efficient pyramid, you know, how do we get better utilization lowest subcontractors.

You know deploying more and more automation and Jenny I on a project. So all of those are baked it in the margin guidance at this point.

Thank you.

With that we come to the end of this Q&A session. We thank our friends from media for being part of this press conference. Thank you Felipe Thank you Jay.

When we were walking out.

Before we conclude please note that the archived webcast of this best conference will be available on the emphasis website and on our Youtube channel later today.

With our friends from media to join Us for ideal outside thank you and have a lovely evening.

Thanks.

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Ladies and gentlemen.

Speaker Change: Good day and welcome to Infosys Limited earnings Conference call.

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Please note that this conference is being recorded.

And I'll hand, the conference over to Mr. Sandeep mindful. Thank.

Sandeep: Thank you and over to you so.

Hello, everyone and welcome to Infosys earnings call for Q4 in FY 'twenty four.

Sandeep: Joining us on this call is CEO and MD, Mr. Tholen, Paddy CFO, Mr. Jason logical and other members of the leadership team.

Sandeep: We'll start the call it something else on the performance of the company subsequent to which we'll open up the call for questions.

Sandeep: Kindly note, but anything we see that gave us what I would look for the future is a forward looking statement, which must read it in conjunction with the risk that the company faces.

Sandeep: Please stay tuned explanation might be but it is available in our filings with the SEC, which can be found on www <unk> <unk>.

Speaker Change: I'd like to pass on the call. This evening.

Speaker Change: Thanks, Sandeep, good evening and good morning to everyone on the call.

Speaker Change: As I mentioned it in before our revenue growth was at one 4% in constant currency terms.

Sandeep: Operating margin for the full year was 27%.

Sandeep: The large deals you had an excellent year in the fourth quarter.

Sandeep: For the full year, we were at $17 $7 billion in large deals comprising of 90 days for Q4, we had $4 5 billion in lost.

Sandeep: This is the highest ever lasting value in the financial year.

Sandeep: This is a reflection of the trust our clients have enough, we see good traction in cost efficiency and consolidation.

Sandeep: For Q4, our year on year revenue growth was flat in constant currency and declined by two 2% quarter on quarter.

Sandeep: Operating margin for Q4 was 21%.

You had a one time impact in Q4, the <unk> will comment on.

Sandeep: We're seeing excellent traction with our clients regenerative AI would youre working on projects across software engineering process optimization and customer support advisory services and sales and marketing area.

Sandeep: Working with all market, leading open access and close large language models.

Sandeep: As an example in software development, we've generated over 3 million lines of code using one of <unk> large language models.

In several situations, we obtain the last language models with client specific data with you.

Sandeep: In our projects.

Sandeep: We've embedded generative and our services are developed playbooks for each of our offerings.

Sandeep: We are committed to ethical and responsible use of artificial intelligence, we became the first IP services company globally to achieve the ISO.

42001, 2023 certification testifying to our commitment to excellence and AI management.

Sandeep: All of our work in AI is part of our co pack offering.

Sandeep: Our cloud work is going well.

Speaker Change: Uh huh.

Speaker Change: We continue to work closely with the major public cloud providers and on private cloud programs for clients.

Speaker Change: Cloud with data is the foundation for AI and generated yet and cobalt encompasses all of our cloud capabilities.

Speaker Change: Data is the other foundation for AI and generative Yeah, we see data structuring access a stimulation, particularly to make large language models and foundation models to work effectively.

Good traction in that offering to get enterprises.

Speaker Change: Data ready for AI.

Speaker Change: We are delighted to announce the strategic acquisition of a company and the engineering services space This quarter.

Speaker Change: Some examples of the work we're doing for the large U S company. These engineered an enterprise grade generated AI platform that has been rolled out to over 60000 users.

Speaker Change: We're working with a large bank and helping them grow louder and internal enterprise wide company specific generative AI incidence of knowledge assistant.

Speaker Change: We continue our focus on our margin program be so good impact of this during the financial year.

Our employee attrition was low at 12, 6% down from 29%.

Speaker Change: In the previous year.

Speaker Change: As we look at the start of the financial year 'twenty time, we see the discretionary spending in digital transformation work at the same level.

Speaker Change: With your focus on cost efficiency and consolidation continuing.

Speaker Change: Large deal wins.

Speaker Change: In the prior financial year will help us in financial year 'twenty five.

Speaker Change: For our revenue.

Speaker Change: We also see normal seasonality as we plan this financial year in terms of guidance.

Speaker Change: With high revenue that our revenue growth guidance for financials financially 25 is 1% to 3% growth in constant currency.

Speaker Change: Our operating margin guidance for the convention 25 is 20% to 22%.

Speaker Change: With that let me hand, it over to Josh.

Josh: Hello, everyone and thank you for joining the call.

Josh: And now I must say this is an incredible religion on it it would be the CFO of this iconic organizations and we'd like to thank Alan and then Indian badly.

Josh: And to me.

Josh: As I step into my new role my areas of focus will be sent in collaboration with <unk> to increase the market yet work with telling them that there'll be the shift to what I take.

Josh: Execution.

Josh: And continue to maximize program expand operating margins and improved cash flow in the medium term.

Josh: Coming to our Q4 years Ed.

Josh: Turning to our Q4.

Josh: Revenues are flat year on year in constant currency done sequentially revenues declined by two 2% in constant currency and declined 1% in dollar terms during the quarter, we had a renegotiation and re scoping of contract with one of our financial services client.

Josh: Which led to slightly over 1% impact on Q4 revenues.

Part of the World got re scope over 85% of the contract is still with us.

Josh: If I had when you feel constant currency revenue growth was one painful, but then normalized for the impact on revenues to come there for its clients.

Josh: 24 was within our guidance range of one point to one thing.

Would you do with it.

Josh: Operating margin for Q4 was at 21, 1% a decline of 40 Bips sequentially, bringing back say 20 for margins at 21, seven well within that guidance band up greater than you do for the financial year 'twenty four.

Josh: The major component of GOP margin, but for the quarter. That's why those headwinds of 180 Lipscomb dragging up the one time impact of contract renegotiation and this could be a.

Josh: EBIT from additional impact on salary increases higher brand building and we've got we've got expenses.

Josh: Gotcha.

Josh: I'll sit back and Linda 140 bps, compared with 60 days from the level well thanks guys.

Josh: My support lower provision for our client base, but that's a tough 40 become a tragic accident and 40 bits relating to Q3 impact from further into it.

Josh: [noise] had linked at the end of Q4 had gone at the end of Q4 was like 17.

Josh: 17000, which led to further increase in utilization, excluding trainees to 80 threep on tight budgets.

LTM attrition for Q4 reduce further but people tend to play with it.

Josh: Unbilled revenues dropped for the fourth consecutive quarter to $1 7 billion. This is a reduction of 91 million in slide 24, which is reflecting an increased cash flows.

Josh: Free cash flow for the year was $2 9 billion, which is up 14% and Google what it's like when you think free cash flow for Q4 was extremely strong at 848 million, which is the highest in last eight last 11 quarters.

Josh: Of that focus on improving working capital.

Josh: DSO for the quarter was 71 days compared to 70 days in Q3.

Josh: Consolidated cash and cash equivalents stood at four 7 billion at the end of the quarter yield on cash was at seven 1% in Q4 and they've done it could be improved because he took on one place it.

Josh: EBITDA for the quarter, what do I need to burn through after a godly hopeful though that we expect the FY 'twenty five normalize we'd get to be within 29% to 30% rate.

Josh: We had another strong quarter in terms of large deal wins for $5 billion of Ptv that'd be deep including to make I D.

Josh: For the full burden of this wasn't like we signed eight lesbians and communication six each N V. S. I talked in detail for each in manufacturing in life Sciences to you on it.

Josh: But you did 16 left on North America, and from Europe, and 41 vessels.

Speaker Change: We ended.

Speaker Change: Slide 24, we've got I guess, there are a lot of deal of D. C was $17 7 billion comprising about 52, but didn't make me one eight megawatt.

Speaker Change: This is a clear validation of the living cells, but they were suffering deep client relationships and leadership.

Speaker Change: The board has declared a dividend that would be like before it's like.

24, along with special dividend of at least eight books, yet would be the total payouts of FY 'twenty 'twenty four will be 85% of X D. S. In line with our capital allocation policy.

Speaker Change: The board has approved a capital allocation policy for the next five years effective FY 'twenty five the company expects to continue the policy of returning approximately 85% of free cash flow.

Speaker Change: Cumulatively over a five year period through a combination of semi annual dividend and share buybacks, they shouldn't dividend subject to applicable laws and because we got to do it.

Speaker Change: Under this policy the company expect to progressively increase the regular dividend plus yet.

Speaker Change: But I think Maxim has a comprehensive margin expansion program continued to run well across five minutes. This is.

Speaker Change: Reflected in more stability in margins for FY 'twenty.

Speaker Change: Compared to the previous year, despite the headwind from lower growth in FY 'twenty four.

Speaker Change: Well, we have made progress a value based selling automation and AI and subjects within the efficient that I might make Lewis at higher Utilizations are high <unk>.

Speaker Change: Continue to focus on optimizing labor to actually increase operating margin in the medium term.

Speaker Change: Coming to the industry verticals, we continue to see macroeconomic effect of high inflation as well as how you think it would be a hard thing. This is leading to a cautious spending by clients who are focusing on investing in services like data digitally AI and cloud and then just I was just going back to we're looking to move workloads to cloud pipeline and deal with that problem and we're working on with our clients.

Speaker Change: Cost optimization and growth initiatives.

Speaker Change: Manufacturing with that the double digit and broad based growth in FY 'twenty for increased traction in areas like engineering, IOP supply chain smart manufacturing and digital transformation.

Speaker Change: In addition, our differentiated approach to AI is helping us gain mindshare and market share.

Speaker Change: Has there been anything well with the client we have a healthy pipeline of logging they got it.

Speaker Change: In retail clients and leveraging AI to claim to fame used use cases for delivering business value large engagement that can be many extra hung up and along with that.

Enterprise modernization cost takeout remains a primary focus.

Speaker Change: Client communication sector continue to be cautious with growth intelligence.

Speaker Change: New Capex the location they mentioned that while the budgets remain tight.

Speaker Change: The opportunities in cost Takeouts V I N database initiatives.

Speaker Change: Gordon Goldman glad they've been delayed by ramp ups of previously Wendy.

Speaker Change: You are a client base.

Cause as opposed to a focus on cost optimization.

Speaker Change: We have like making a more deep cut on Linda consolidation and some managed services deal pipeline of logging and maybe ideally you'd like to stay and that's what and corrected it yourself for a cost take out and we can touch solution that fits all classes I picked up.

Speaker Change: Macro concerns and high Tech continued leading to delays in deal closures between making Atlanta repo, but didn't spend it's cliche programs like I talked about.

Speaker Change: And that's like Glen if I. Therefore, we expect growth to exit from FY 'twenty. One there was in financial services and telco verticals due to lagging but manufacture manufacturing sector, while still showing a healthy growth. When you see lower growth that I played Lady foot I think is expected to remain so.

Speaker Change: Driven by our current assessment of business environment, including continued tough basically because he said he's spending ramp up somebody that began earlier do you expect it's likely to be one 2% in constant currency.

Speaker Change: Our operating margin guidance for the year to 22, 2%.

Speaker Change: Guidance on it it's probably gonna be tried does not factor in today's acquisition authentic.

Speaker Change: Let me open the calls for the Gospel.

Speaker Change: Thank you very much.

Speaker Change: I'll begin the question and answer session.

Speaker Change: Participants who wish to ask a question maybe to start and one on your Touchtone phone.

Gospel: You're using a speakerphone please pick up your handset while asking a question.

Gospel: This is required to ensure optimum audio quality on the call.

Gospel: Sure you're lying have any disturbance.

Speaker Change: Yeah connection.

Speaker Change: Maybe I should've done into the question queue.

Speaker Change: Ladies and gentlemen.

Speaker Change: Wait for a moment, while the question Joseph.

Speaker Change: Yeah.

Moshe Katri: The first question is from the line of Moshe country from Wedbush Securities. Please go ahead.

Moshe Katri: It takes in a garage are welcome and congratulations.

Speaker Change: So sorry to interrupt.

I Hope your voice is not coming clearly closer to speak a little louder. Please.

Speaker Change: Yeah.

Moshe Katri: So first my first question has to do with the June and September quarters tend to be seasonally the strongest.

Moshe Katri: The industry can you provide any color on sequential growth from March and June given your guidance for fiscal 'twenty five.

Geisha: So Moshe this is geisha and thank you for the wishes. So you know if you look at within our guidance range of London, but shouldn't we expect normal seasonality, which means that H, one would be stronger than the extra week.

Geisha: Okay.

Geisha: Goodbye.

Speaker Change: So could you indicate it but the the.

Speaker Change: The fact that our you know the fed cutting rates is going to be kind of delayed and pushed out and that impacting demand.

Speaker Change: Demand for discretionary spending.

Speaker Change: Our clients also talking about the past few weeks the political instability in the Middle East. That's also kind of like what are those that get up headwinds there.

Speaker Change: Oh, Hi, I'm also Italy.

Speaker Change: I think I understood. The question you spoke a little bit about the outlook in terms of discretionary and digitally and I think your question is is the current.

Speaker Change: Middle East situation.

Speaker Change: What clients are talking about so.

Speaker Change:

Speaker Change: In general the sense, we've had are in discussions with clients is.

Speaker Change: On the discretionary work and the digital transformation work.

Speaker Change: The same mindset as it was in the <unk>.

Speaker Change: Financially.

Speaker Change: Recently like in Q4 Q3 now.

Speaker Change: Now I'm sure you've.

Speaker Change: We've not specifically add any commentary on the situation, but I'm sure. That's something that that are that people are thinking about but it is one among many factors that are playing out is my guess.

Speaker Change: Understood. Thank you.

Speaker Change: Thank you very much.

Unknown Executive: The next question is from the line of Uncalled withdrawn from Jpmorgan Chase <unk> Company. Please go ahead.

Uncalled withdrawn: Thank you and welcome Jason on the new roles.

Speaker Change: Last question as you know our calendar.

Speaker Change: The environment.

Speaker Change: Now the one thing that we find it.

Speaker Change: Difficult to understand despite that.

Speaker Change: A lack of revenue acceleration despite very impressive lost contract signings that you've enjoyed for close to a year now could you maybe elaborate a bit more on the persistent disconnect and if the large deal signings is something that we should pay attention to this environment continues.

Speaker Change: So tanks are included.

Speaker Change: Well, what we have seen.

Speaker Change: First one large deal is especially for cost efficiency and consolidation we are proving to be a good choice for clients and that's where you're seeing a tremendous.

Speaker Change: For what is going on.

Speaker Change:

Speaker Change: The next.

Speaker Change: In terms of what we've given as guidance.

Speaker Change: So first what we see is.

Speaker Change: Okay.

Speaker Change:

Speaker Change: This digital transformation all discretionary thinking from clients is remaining.

Speaker Change: Meaning similar which is which was a slow in the past in Q4 Q3, you see that continuing on.

Speaker Change: That gives a some of the ways where revenue is less within our guidance outlook, but large deals.

Speaker Change: A positive part of that outlook and those are the puts and takes right now.

Speaker Change: Now we see in financial services.

Speaker Change: The coming year appears better this is not like one on digital or discretionary alone it's across the industry.

Speaker Change: There is on manufacturing, we are seeing which we had a good growth in a financially plentiful, we're seeing will still have growth, but the slow growth in financial year 'twenty five and those that are sort of puts and takes which give us. This this type of guidance.

Speaker Change: Some things which are supporting.

Speaker Change: And some things which are good training.

Speaker Change: No. Thank you for the additional color I mean, maybe you saw some number be.

Speaker Change: You just reported your large contract signings on your contracts are of a certain threshold. If you were to look at the overall contract signing would that with the momentum there would be more similar to the revenue momentum we see.

Speaker Change: So that.

Speaker Change: As you know disclosed the other non large deal signing again the overall a lot of the pipeline and the deal wins is good but what it doesn't take into account is when some things on a digital transformation all on distressed Judy a slowdown.

That doesn't come into the game when you look at some of the D wins at whatever size it.

Speaker Change: That those are the puts and takes that we see as we build the forecast for next year.

Speaker Change: And then just one last clarification the hundred basis point impact to highlight there James is that a revenue impact a combination of the impact of the re scoping. We just saw really one time I understand because the.

Speaker Change: It seems a lot more than 15% in one place.

Speaker Change: Hi, Hi, uncle and thanks for the wishes of the beginning you know that one button impact, although one button in Baghdad anyway, reflecting into the margin pretty much directly in terms of 100 basis points.

Speaker Change: So that's that's the majority of lives with lots of majority of the impact.

Speaker Change: Okay. So that's part of it I mean, I get the margin back to clarify that.

Speaker Change: No I'd say that didn't impact that's that's what I'd say it did have an impact of one person, which is slowing down to margins Ricky.

Speaker Change: Okay. Let me repeat my question was.

Speaker Change: One person it seems a lot more than 15% of one client because I think you've said.

Speaker Change: You've retained 85% of school, so there seems to be more than the impact of re scoping.

Speaker Change: Is that a one time impact of which will reverse.

Speaker Change: And then the re scoping won't even be part of the question essentially.

Speaker Change: That's where uncle when you when you have any visco could've been better now the impact doesn't mean that I'm in 15, but in other words doesn't mean that 15% of the revenue goes away in one quarter right. It depends on how much of what you have done how much of the impact therefore baking there's no penalty, but it's it's a question on how much of the work I've done and how much of that that goes away.

Speaker Change: Pretty much.

Speaker Change: Okay understood.

Speaker Change: 15% had gone away in one quarter right. So it doesn't seem that it's another way to work with you on these calls.

Speaker Change: Okay. Appreciate it thank you and best of luck.

Speaker Change: Thank you.

Speaker Change: The next question is from the line of Carlo <unk> Zhao from <unk>.

Please go ahead.

Carlo Zhao: Hi, a couple of questions or maybe it's actually more than back on the first question is on the guidance and it so far.

Carlo Zhao: I know it has been more of a oh quite a series of misses in FY 2020 for Oh, you know what are the learnings you have incorporated Oh man you basically have.

Carlo Zhao: Taken a stance for taking a stab at guiding for for 2025 Yep. That's the first question.

Carlo Zhao: Hi, Karl this is felipe.

So what what do you Oh.

Felipe: Attempted to do in the guidance is.

Felipe: Look at what we have seen for example on digital work in discretionary work.

Felipe: Which is Oh did you were seeing a slow in the coming financial year, we don't see that change and then layer in.

Felipe: What we see in terms of the law.

Felipe: Large deal wins.

Felipe: And to do financially or 'twenty five.

Felipe: And then I I didn't.

So the most years, we have a view.

Felipe: Seasonality, where they each one is stronger than the each due for us at Infosys.

Felipe: It can be we see that impact with a slower Q3 Q4. So that's how we have.

Felipe: Attempted to build the guidance that we put in 1% to 3%.

Felipe: Okay.

Speaker Change: I remember when we started.

Speaker Change: The last time, you also coming from a very high growth environment.

Speaker Change: So you know we had that that that kind of the exit trajectory that that goes also has been from a guidance perspective, they were getting baked into guidance.

Speaker Change: Today than we were looking at it.

Speaker Change: I mean coming out of the one 4% growth.

Speaker Change: And that's why I believe you know that that kind of a tail.

Speaker Change: Tailwind is not bad in any case and the like.

Speaker Change: Okay Fair enough. The second question that I had is that kind of detail the reasons or factors that led to the re scoping of projects with a large client.

Speaker Change: Because of your large do use Duke execution risks.

Speaker Change: So you know what are the learnings from the past large deals that you have signed Oh, you know what you have incorporated in the current crop of largest easier.

Kelly: This is Kelly.

Kelly: First I think what we have seen.

Kelly: Across the board as we have had tremendous success in the large deals and the various delivery of that.

Kelly: Some of the learnings we are putting in place in general not from a specific duty is more to do with how.

Kelly: How we understand the complexity of our clients look at complexity and how we make sure that we remain aligned in that on the specific deal. There is no other comment we've made that statement.

Kelly: In all.

Kelly: All of that's north, but there's no other comment on that specific situation.

Speaker Change: Okay. The final question that I had.

Speaker Change: If you Jay showed that last year, there wasn't mentioned that the endeavor would be to expand our operating margins.

Speaker Change: You know I think the guidance Bang for the freight 25 ease are unchanged.

Speaker Change: Is there a timeline already now which are you know, we didnt, which you intend to.

Speaker Change: Spine or increase your own sort of operating margins and what are the factors Oh the type of environment that is required to push to the margin expansion as such.

Speaker Change: That's what color even if you remember the last time I went we had paid our endeavor is to improve margins or operating margins and make the right and we still maintain that we haven't changed from that because it makes them. It because it didn't work we have seen encouraging because as you can see.

Speaker Change: Even from the walk up this quarter or the previous two quarters.

Speaker Change: Have called out the benefit that we got from project in Mexico.

Speaker Change: If you look at FY 'twenty guidance.

Speaker Change: And the puts and takes of those guidance as you know, we we do a bacon the the revenue growth that we are Vienna and deciding on top of that we had a flow through of last year, we laid out a comp increase of members. So there's a full year impact or at least since they are in London, but coming into the next financial year, let's be become that we will do so this went on to that.

Speaker Change: So those are the those are the you know headwind and then in terms of tailwind or utilization.

Speaker Change: I'd below.

Speaker Change: Oh comfort level of 84% to 85% of the subcontracts and higher from there basically eating weekend, we can operate in an optimum level of <unk> expression.

Speaker Change: You no I appreciate that I made we can improve those ratios.

Speaker Change: In an ideal scenario if the growth is better the ability to do it but the real issue is much better but even in the you know in a can.

Speaker Change: And one of them and we are improving those ratios. So does that does that that's a fact that I don't have patients that are on the journey and automation we are we.

Speaker Change: We have done a lot of progress and we are a we are doubling down on that so I think all of those that they've been in the current guidance of 20 to 22, but our endeavor. It's continue to you know into operating margin a limit that.

Speaker Change: Okay. Thank you for answering my questions and wish you well.

Alright, thank you.

Speaker Change: Thank you.

Speaker Change: Question is from the line of Commodification Colombian be bought about please go ahead.

Speaker Change: Hi, Good evening. Thank you for taking my question My first Squishy Muslim beauty.

Yes.

Commodification Colombian: On the electricity.

Commodification Colombian: Correct.

Commodification Colombian: Hi.

Speaker Change: Yes. Please go ahead.

Speaker Change: Sure. So my first question was on beef your face where even if it's just for this contract would be depreciation covered because it seems to have SKU count by about 3% to 4%.

Speaker Change: I mean, some of your peers have started talking about coffee can be if in fact, you have gone through a solid recovery in the March quarter. So is there something outside of this contract negotiation also be tapping into what it could be too specific to you.

Speaker Change: So come out you need to look at it.

Speaker Change: I think as you know one is we have a larger bee in fact that portfolio a second there's a discussion that you shed on that would be if they say it's been higher and that is what is impacting although with a portfolio from a growth perspective, I don't think it's significantly different.

Speaker Change: From the company's overall headwinds.

Speaker Change: Also has a.

Speaker Change: Similar headwind in terms of.

Speaker Change: The cliche, but that'd be due with the client.

Speaker Change: In addition to that you know about we we do have exposure to the mortgages, which has a real call. It earlier.

Speaker Change: Does that remain soft good indicator on it but.

Speaker Change: But you know what do you hear from US. So we have called out that we expect would be if a day in FY 'twenty to be better than a matter of fact, when he full so we do see a.

Speaker Change: Some encouraging.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Okay and from could you depreciation pockets is that impactful either afflicted and this quarter it or there could be more impact going into the next quarter.

Speaker Change: The impact is completely they come into the club.

Speaker Change: Okay got that and my second question was around the margin guidance, which you have spoken about so yard global to you. The fact that as domestic peers all of them usually have spoken about margin expansion confidence their own margin expansion different actually Richard So I. Appreciate your target of medium term margin expansion, but where do you see you are confident of margin.

Speaker Change: Who have bottomed out and on the 11th apparently you have seen are the kind of mix you have in the order book holds you back from giving any direction since I'm back.

Speaker Change: So having them come out there.

Speaker Change: Guiding which part of the 2022 we will be as I said earlier, our endeavors to to improve margin. So maybe oh, but we're not giving the financial year 'twenty five guidance. Even if you go back to the puts and takes we do have some headwinds in terms of.

Speaker Change: Compensation.

Speaker Change: I'll be glad things are ramping up during this year as well as we have a tailwind coming from pricing coming from you know fishing, but I made the.

Speaker Change: The automation and then Danielle we are deploying so we win we win we will not leave any any stone unturned on this project, but we have not yet guided in terms of where we will end up going to deal with them as well.

Speaker Change: Got it thanks, a lot and best wishes on your roof.

Speaker Change: Thank you for that.

Speaker Change: Thank you very much.

Speaker Change: Next question is from the line of Keith Bachman.

Keith Bachman: From Bank of Montreal. Please go ahead.

Keith Bachman: Hi, Good evening and good afternoon, I also wanted to ask.

Two questions that are related.

Keith Bachman: And I'll ask them together.

Keith Bachman: Firstly could you just talk about how you see utilization trends.

Keith Bachman: Hum.

Keith Bachman: Unfolding this year it would seem to me that with the labor market fairly weak utilization should go higher and similarly.

Keith Bachman: That wage hikes with the market being fairly weak unemployment right across many parts of attack that.

Keith Bachman: To me the wage hikes.

Keith Bachman: Should be lower.

Keith Bachman: And.

Speaker Change: Maybe I'll just stop there and then I'll ask my follow on question. If you could just talk about those specific puts and takes that would influence margins.

Speaker Change: Yeah. So Keith if you look at our utilization our utilization, including trainees was at 77 both of them knocked yet.

Speaker Change: Which has gone up to 87 for the full year and we are exiting at 82, so that that clearly shows a significant pipeline in agreement.

Speaker Change: From a utilization perspective, we have been able to deploy all the fishes allows no matter if that shows you know backward production. So that's on utilization.

Speaker Change: The comfort level and utilization, including or excluding trainees at about 80 485 with them. So you know we still have some headroom there.

Speaker Change: On the competition you know whenever we decide on campus. They shouldn't we take multiple factors into account inflation.

Speaker Change: That's it that's it for us so we will take all of that into account during the year and then we decide on compensation at this point in time, we haven't decided on you know the quantum or the timing as we just did a lot of competition in November of last year.

Speaker Change: Okay.

Speaker Change: Surprises me I'll make it stay somewhat off my follow up question about sort.

Speaker Change: Sort of tepid revenue growth I'm surprised that margins wouldn't go higher during the course of the year relative to the.

Speaker Change: Passenger give them give them those forces and others. My follow on question, though relates to journey II.

Speaker Change: There's two parts of January there's demand side platform, so I'm not asking about the man.

Speaker Change: Supply side is are you factoring in increasingly gen AI as you're undergoing software development activities on behalf of your clients is that helping your productivity.

Speaker Change: Yeah, it or is it still too early and along with that if you will.

Speaker Change: Using J I E.

Speaker Change: To facilitate or enhance your.

Speaker Change: As you can see on co development.

Speaker Change: Is that a negotiation that's starting to unfold with your clients.

Speaker Change: That they're asking for.

Speaker Change: Lower billing rates, if you will related to that efficiency is that happening yet or is it still too early.

Speaker Change: Sure. So thanks for that because there's just a little.

Speaker Change: The agenda is a eye.

Speaker Change: On the projects we are working on we are starting to as we have already seen.

Speaker Change: <unk> benefits on productivity and software engineering.

Speaker Change: And what we've seen there is and so it's really more focused on a narrow dataset in this case the software capabilities within enterprises within the client base.

Speaker Change: Not not not sort of broad based today.

Speaker Change: And are you seeing a impacts and benefits what what we see is typically.

Speaker Change: We've not seen so far is a deep discussion, but we can certainly see in some instances benefits where clients can do more work are in terms of creating more output for the team same type of an effort.

Speaker Change: There is definitely a productivity benefit, but we've not seen something with just come back on the rates are in that sense.

Speaker Change: Okay perfect. Many thanks for your help and best of luck during the year.

Speaker Change: Thank you.

Speaker Change: The next question is from the line of I'm going off of that.

Morgan Stanley: From Morgan Stanley. Please go ahead.

Morgan Stanley: Hi, Thanks for taking my questions. My first question is with respect to the ramp up of some of the Mega deal that was supposed to start towards the back half or fourth quarter or have you seen them starting on time. When do you expect these to kind of create some momentum in the coming quarters.

Morgan Stanley: Hi, Good also Oh, you know what weird and besides that the beginning of the quarter of a mega deal starting in Q4 have I was taught to S.

Speaker Change: As planned.

Speaker Change: Sorry, secondly on guidance visibility typically when you start the year you have a certain level of visibility maybe let's say 65 70, whatever that number is given that you are entering this year with significantly a larger deal wins would it be fair to.

Speaker Change: See that visibility would be slightly higher than the usual year for FY 'twenty five.

Speaker Change: So that doesn't feel even if you look at over the years with the portfolio mix changing where are the cliche portfolio has become larger in terms of our portfolio mix. The liquid Mcgee has obviously come down from Daniel but taking some movies that Tribeca short duration.

Speaker Change: Depletion of any nature.

Speaker Change: The extent you do have.

Speaker Change: Lack of visibility if I had to pay you back.

Speaker Change: Good.

Speaker Change: That's the way it was earlier, but yeah, well you don't come back to that if you look at the large deal that does benefit from a long term perspective. So you do have Oh, you know I Love Foundation of luggage, but at the same time you do have smaller because we got if we say and Oh can be Oh baby attempting some of them are being are being reduced.

Speaker Change: Being stopped.

Speaker Change: Well scaled up.

Speaker Change: Okay last question on your comment on one of the drivers for margin a medium term improvement was jenni attitude automation.

Speaker Change: Could savings how confident you are to you know a.

Speaker Change: Redeem these savings as a quite possibly fees.

Speaker Change: These get renegotiated over a period of time and declines kind of extract that back from the windows. So just trying to understand is is this going to be sustainably and important driver for margin improvement in the medium term. Thank you.

Speaker Change: But I think they're the things will evolve over a period of time at this point in time, we are able to retain part of the automation AI getting a part of the work that we're doing.

Speaker Change: But they are you know how would we look all over that period of time that you get when they have to be seen.

Speaker Change: Yeah.

Speaker Change: Do you have any follow up thank you.

Speaker Change: That's all for me thank you.

Speaker Change: Thank you.

Speaker Change: The next question is from the line of Bryan Bergin from Debbie Koopman. Please go ahead.

Bryan C. Bergin: Hi, good evening. Thank you.

Bryan C. Bergin: First one on the workforce. So understanding you have still some room for utilization to move higher but do you expect that the June quarter, I count might stabilize will mean that there'll be declining sequentially.

Bryan C. Bergin: So Brian on the on the utilization we are currently at 88, 2% excluding excluding.

Bryan C. Bergin: They need that ADT, bunfight button, including kidney.

Brian: We'll have a headroom there as I mentioned earlier, we think we can go up to 80, 485%.

Brian: Utilization.

Brian: Okay, So implying head count may continue to.

Brian: It declined sequentially. If that's the case just run normal course on attrition.

Speaker Change: Yeah and.

Speaker Change: And coming back to your other question on head count.

If you look at through the year.

Speaker Change: You started the year with 77% utilization.

Speaker Change: And if the demand environment was different because we had a different expectation of who they are that demand environment has changed that has in fact that'd be had gone or they need how they had gone. The attrition has significantly come down we're now trying to get a great success at a place where we got some benefit from from a value based selling in terms of pricing. So all of that has.

So they've been in a lesser requirement in terms of head count and let's say you see a net negative going forward.

Speaker Change: Again, we as I said we.

Speaker Change: Still have some headroom on utilization. So we can tap into that we will look into a demand.

Speaker Change: Demand then.

Speaker Change: You know what they are we have moved to an agile hiring model where we.

Speaker Change: We hired large number we can hire a large number of ratios of the campus. So we will tap into that as it but as we go through the year.

Speaker Change: Okay, Okay, I appreciate that detail.

Speaker Change: And then just on backlog. So you continue to post really strong large deal signings, but it's clearly not yet converting to revenue at the same pace, but maybe we can dig in a little bit on backlog trends has there been any material backlog degradation or leakage.

Is it just significant widening in average duration and you can you do to help us understand some of the moving parts.

Speaker Change: So revenue growth.

Speaker Change: I don't think there's anything.

Speaker Change: Beyond what you mentioned earlier in the call in terms of you know discretionary coming down.

Speaker Change: But I know a material.

Speaker Change: These oh.

Speaker Change: Does he have been stopped etcetera. So it is just the discretionary and on that if there's anything into this.

Speaker Change: Great. Thank you.

Speaker Change: Yeah.

Speaker Change: Thank you.

Speaker Change: Yeah.

Speaker Change: Next question is from the line of Ashwin Mehta from Ambit capital. Please go ahead.

Ashwin Mehta: Hi, Thanks for the part B when I got this question a different way you have.

Ashwin Mehta: Close to 91 2 billion of new will be using that cycling before in addition, you will have new from smaller deals the advent, which you do not report and in addition, there'll be more deal timing and their flight great fight a plus.

Ashwin Mehta: Plus we'd indicated most of the <unk> and it's likely to be fired so how are.

Speaker Change: You mean, what they wear duration I did it because it didnt should have been more.

Speaker Change: But where are the linkages in the existing business and is discretionary demand worse than FY 'twenty five versus that's likely easily.

Speaker Change: Yeah.

Speaker Change: Oh, hi, there selling let me start.

Speaker Change: I think the.

Speaker Change: Claims on the discretionary I'll clue on digital transformation outlook, we find it similar to what we've been seeing in this Q4 and Q3. So we don't see a change in that.

Speaker Change: And that's what we've factored in too.

Speaker Change: Two how we build the guidance keeping in mind are some of the benefits of the large deals.

Speaker Change: Okay. My second question was in terms of the 100 bps impact on margins because of the negotiation.

Speaker Change: Will that universe immediate you put us in one or two at a time in terms of the company.

Speaker Change: Oh.

Speaker Change: So with a jazz yet.

Speaker Change: This is one time impact because of re scoping and reading a rotation you know theres no reversal happening up there.

Speaker Change: Okay, Okay, and the last one if I can squeeze the agile model of hiring is for inflation, which typically takes six to nine months to get productive so is.

Speaker Change: Is there a need to hire a lot goes up as you go forward.

Speaker Change: From this years perspective given bed.

Speaker Change: <unk> is a lack of lighting they'd be picky to make it.

Speaker Change: Yeah.

Speaker Change: Yeah. So I mean, I didn't hadn't you don't really need to plan a year in advance and I'll show you can hire technically a lateral to the three months ahead of time, but one thing you can I wanted to run it off months ahead of time. So that's how we will be keep tweaking the model as we go through the.

Speaker Change: So there's no I mean, we we have baked in what we see in terms of demand today and if the demand environment changes the beauty hiring numbers will change accordingly.

Speaker Change: Okay fair enough. Thanks, a lot.

Speaker Change: Yeah.

Speaker Change: Thanks Ashley.

Speaker Change: Thank you.

Speaker Change: Our next question is from the line of Sandeep Shah from <unk> Securities. Please go ahead.

Yeah. Thanks, Thanks for the opportunity.

Sandeep Shah: My question.

Speaker Change: I'm sorry.

Speaker Change: Background disgrace many projects.

Speaker Change: Right.

Speaker Change: The growth slowdown or enforces and maybe that's the problem.

Speaker Change: Hope you all get fight wait and see.

Speaker Change: Well, Scott, but even cited by U S birds eye declining discretionary spend which isn't.

Speaker Change: Impacting five quarters in a row for being vaccine bounce off the distribution that you spend so the question is does the pace of decline.

Speaker Change: The discretionary projects and bring a fight ready to fight would be similar to what we have seen in all of our filings stocking yourself.

Speaker Change: Right.

Speaker Change: Exactly.

Speaker Change: Yeah.

Speaker Change: Hi, This is Kelly I think what we are seeing.

Kelly: Is the way clients are looking at their discretionary work on digital transformation work is quite similar to the recent quarter.

Kelly: So we have no comments, specifically on you know what things would you like.

Kelly: Three four quarters back we were marching how it's changing or not changing in like Q4 Q3 versus what we are seeing today for the next.

Kelly: Reviewed in financial year 'twenty five.

Kelly: Okay.

Speaker Change: And the second question this.

Speaker Change: Just wanted to understand regarding to the workflow from the menu what could be the impact related to <unk> in Q1, our headquarters.

Speaker Change: During the fourth quarter, which could have been worse in the first quarter of FY 'twenty.

And they are you know this is a renegotiation of the re scoping that has happened this quarter and the impact that they can then in this quarter, we haven't broken down into how much of this quarter and how much of the back office.

Speaker Change: Okay, but is it fair to say fourth quarter will also include some reversal of the airports.

Speaker Change: We are not breaking it down further to me.

Okay. Thanks, Thanks, and congratulations guys.

Speaker Change: Thank you Sandeep.

Speaker Change: Thank you.

Speaker Change: Next question is from the line of Cingal.

Cingal: Please go ahead.

Cingal: Yeah, Hi, Thanks for taking my question.

Cingal: So then my question was maybe if I can.

Cingal: Basically.

Cingal: Yeah on the studio.

Cingal: Coffee items, Mark may be to blame.

Cingal: I Hope you mentioned in the past.

Cingal: So it's really part of our business.

Cingal: But if I look at this number compared to people who've been asking yes, that's gone up from.

Cingal: One of the house.

Cingal: Sure.

Cingal: Uh huh.

Speaker Change #100: Brad This is such a thing.

Speaker Change #100: And typically these things will come back but easy model.

Speaker Change #100: Is this increasing part of this is possible.

Speaker Change #100: Company, our ability to expand margins.

Speaker Change #100: What we could do so oh what.

Speaker Change #100: What I can say is that this is becoming a pocahontas UBC business, obviously is that there's something happening over our ability to expand margins.

Speaker Change #100: Yeah.

Speaker Change #100: We bought it was difficult to us.

Hear you if you could come closer to the Mic and repeat your question. Please.

Speaker Change #101: I'm, so sorry, but is.

Speaker Change #102: Was it better out of them.

Speaker Change #102: Yep.

Speaker Change #103: Yeah, Okay, I'm, sorry, Oh, sorry, what I wanted to ask more of that if I look at this line item called third party items smartphone side, there's a degree to clients, which is essentially what we call. The sponsored revenues now that has increased significantly over the past three years from four and a half with central seven and a half.

Speaker Change #103: No I know in the earlier quarters, you've called it out because it's now a strategic part of our business.

Speaker Change #103: Does it mean this changing nature of the business and Richard This is becoming an increasingly higher part of it or whatever you want does not impact our ability to expand our margins from the levels that they are not great.

Speaker Change #103: So that's why as you know these become a competitive margin as compared to the overall company margin.

Speaker Change #103: This is a trend that you would be we can expect to continue and this line item to continue recruiting as opposed to just revenue going forward is it.

Speaker Change #104: Well you know if you.

Speaker Change #104: And then digging transformation lies maybe that'd be it comes with all the all the costs, it's not only I've heard because it comes with hardware software cause it because you're taking with the <unk> project from the client and that becomes an integral part of the project delivery and as a result, you have to go get that done you know and Cook and provide the end to end.

Speaker Change #104: I listened to the client and that's why you see this class.

Speaker Change #104: Good good part about this is that this these kind of businesses become very very sticky business and the decline in long term commitment from the client and so it's a long term business. So far as we are making what are the margins on the deal. That's how we look at it we don't look at it you know what.

Speaker Change #104: But because as I've gotten closer and closer and if you look at it whether you are making or whatever margin on the deals and deciding whether we want them to go for a deal or not.

Speaker Change #104: Butter and B you know most of these deals that we have we have taken we have got much more work from them are significantly more work from them and that's around the environment from the client.

Speaker Change #104: We can all we look at it as a portfolio of the business.

Speaker Change #104: This quarter, we didn't have.

Speaker Change #104: The view in terms of weather and weather and remain at the same level. They live within their own independent at the time the nature of these come and how do we find it in the future.

Speaker Change #105: Got it I think you preempted my next question. Thanks.

Speaker Change #106: Thanks for that but just one more question on the subcontractor side.

Speaker Change #106: That doesn't actually come down over the past couple of years.

Speaker Change #106: I'm Gonna want out of a percentage point of view, but it's still I would say are higher than what we have historically done pre COVID-19 numbers. So they're deeply believe bid on and be comfortable with this number and given that generally at this point of time.

Speaker Change #106: Given the revenue growth is quite low the demand environment in terms of how it.

Speaker Change #106: Walk that we acquire is not that time, even though our guidance off of what the people say do you believe there is scope for further reduction in this a contracting costs from the current level or do you believe that 8% that we have today you kind of hit the number that hit the bottom and it's probably going to stabilize at this level.

Speaker Change #107: Yeah. So oh. This is one of the drags on the unmet public Maximus. So you know I love that.

Speaker Change #107: Fishing bid on it.

Speaker Change #107: Do you think subcontractors, we have they do have subcontractors from the peak of last year by almost 8%.

Speaker Change #108: You know historically in the past were located in 5% to 6%. So we believe there is some headroom.

Speaker Change #108: To bring that up.

Speaker Change #108: Contact contract.

Speaker Change #109: Great. Thanks, Jay Thanks, you so much for taking my questions. That's all from my side and wish you all the best.

Speaker Change #110: I can't give you the.

Speaker Change #111: Thank you.

Speaker Change #111: First of all the participants please use your handsets and the last thing a question.

Speaker Change #111: The next question is from the line of Surendra Goyal from Citigroup. Please go ahead.

Surendra Goyal: Good evening everyone.

Surendra Goyal: So I joined the call a bit late.

Surendra Goyal: This has been answered before.

Surendra Goyal: But so to yourself.

Surendra Goyal: Catherine.

Surendra Goyal: Hum.

Surendra Goyal: Is this like an isolated incident.

Surendra Goyal: Multiple examples.

Speaker Change #113: Any other comments.

Speaker Change #113: This is one we have even called it out it's one diamond bag of a large contract and financing services.

Client: Client, it's impacted our revenues by over 1% and therefore can imagine got impacted by 1%.

Client: It's a renegotiation in the scoping of an existing contract but at the same time, if you look at it over the last few years, we have got additional work on the client and 85% of the work under this delisting continuing with that so.

Client: That's all I can offer at this funding them with other vessels.

Speaker Change #115: My question was is this a significant step.

Speaker Change #115: We're seeing more.

Speaker Change #116: So I just didn't get them.

Speaker Change #117: Please go ahead then.

Speaker Change #117: Excellent.

Speaker Change #117: So.

Speaker Change #117: I mean cause of.

Speaker Change #117: The reason I say that in run off or one time impact that is this an isolated impact we haven't really seen any other large contracts being beef cooked a renegotiated renegotiating.

Speaker Change #118: Jimmy I do you have any loans, whose name is coping with.

Speaker Change #118: Yeah.

Speaker Change #119: Oh, there is no.

Jimmy: The reason we ended the equal being a renegotiation, there's nothing to do with it.

Jimmy: One last question on like how would you be able to do.

Jimmy: Alright, so is like would you be kind of baking in some kind of.

Jimmy: Cost into the basin.

Jimmy: Because obviously, he's coping seems to be a common theme.

Jimmy: <unk> by another large deal.

So we've got additional new combo packs they seem odd.

Speaker Change #121: Is it something else.

Speaker Change #121: So when when we gave guidance.

Speaker Change #121: Certainly we look at what is visible at this point in time, you know we bake in everything you know in terms of we know that the discrete is going to be a big that and we know the large deal that we have clients that we have baked that in.

Speaker Change #121: We are we don't expect you know this is one off incidents that we don't expect.

Speaker Change #121: Any large incidents like that so that's not really baked it.

Speaker Change #122: We had an appointment Andreas thank you.

Andreas: Thank you Sir.

Speaker Change #124: Thank you.

The next question is from the line of something Padmanabhan from Investec. Please go ahead.

Yeah, Hi, good evening, thanks for the opportunity.

Padmanabhan: So it's a little Oh, you mentioned that now you don't need.

Padmanabhan: Discretionary spending environment is similar to that of Q3 and Q4 and there's no change.

Padmanabhan: Is it considering that Q3, and Q4 have seen higher declines versus the Oh, well versus the other quarters of Oh 24 are you you did a fair to assume that Q3 Q4 from a discretionary spending perspective has been the.

Padmanabhan: A vast a versus the whole over 524, and we are basically as you mean that that that kind of situation is sort of continuing through FY 'twenty five that's the first question.

Padmanabhan: And so on.

Padmanabhan: What we saw in Q3 and Q4.

Padmanabhan: There's obviously.

Padmanabhan: Normal.

Padmanabhan: Normal year, there's differences between Q1 Q2, which are typically stronger in Q3 Q4. So those are things to be layered into any view that we have looking.

Padmanabhan: Looking backwards, we don't have any specific comment.

Padmanabhan: On the you know rich rich quarter, where bad things are.

Padmanabhan: With talk as you as you know probably.

Padmanabhan: Starting with Q1 or even Q4 of the prior year.

Padmanabhan: There's sort of a view would we have not we've not given.

Padmanabhan: Let's say quantification of which rich quarter was worse in that sense.

Padmanabhan: Having said all of that.

Padmanabhan: The general perception.

Padmanabhan: The general observation, we have is things change a little by little by by industry, as well and things evolve across geography as well. So there's not like one picture that is it.

Padmanabhan: We are more looking at it from that immediacy of the recent.

Padmanabhan: Sort of discussions we've had with clients to what we are having now are for the future work.

Padmanabhan: Yeah, and and is this a discretionary a headwind.

Padmanabhan: Seek to more specific or let's say, a more pronounced and be a society.

Padmanabhan: Is there any such trend or it is broad based.

Padmanabhan: Yeah.

No nothing nothing which is like that very specific onto onto a fashion.

Speaker Change #126: Sure and lastly, our see our utilization is at 83, 5%.

Speaker Change #126: Including trainees and we think it can go up to 85.

Speaker Change #126: Now usually at least over the last many years, our pullback in discretionary has always been a pretty sudden.

Speaker Change #126: So hobbies or skiing opportunity by maximizing on utilization or is there something to worry about is Oh, just a question out there.

Speaker Change #126: So you know as I was saying earlier in the call. You know we have moved to an agile hiring module.

Speaker Change #126: We can we if we look at it in FY2023 'twenty two numbers off you know fresher hiring more than half of let's say shows were hired through off campus I could say, so we have that ability to to dip into we are at 82%, including a painting. The next 80 people in fibers and excluding <unk> for the quarter. So that's why we are exiting retail.

Speaker Change #126: And if you look at including if they need it most.

Speaker Change #126: We selected three but then there's headroom.

Speaker Change #126: Our ablation is done you know what it is.

Speaker Change #126: Much debuted the lateral took endpoints et cetera. So we don't see that as a as an addition.

Speaker Change #126: Yeah.

Speaker Change #126: So we will we will calibrate that as we go through that with the QUADRA and yet and take corrective actions. We don't really think that and of course, you know if there's a need we can always.

Speaker Change #126: They've been to subcontractors are you able to capture the demand then replenished.

Speaker Change #126: Replenish that are providing so all of those are the things that are available to us to capture demand there's uncertainties.

Speaker Change #126: And lastly from a margin perspective.

Speaker Change #126: Hum at least in the near term are those hundred bps will be a tailwind and non recurrence of these of course will be a tailwind.

Speaker Change #126: So there should be a pick up in margin or at least in the near term that's a fair assumption to make.

Speaker Change #126: Or do you foresee any other headwind yes.

Speaker Change #127: Yeah. So if you look at you know I didn't give a margin walk at the beginning of the call as yet.

Speaker Change #128: We had some tailwind in this quarter as you know from from the lower provision for doubtful debt provision towards client connectivity.

Speaker Change #128: Post sale customer support so those are the headwind or tailwind this quarter.

Speaker Change #128: Which will become I'd rather than near term. So I think you have to factor all of those when when you're looking at headwinds in their lives.

Speaker Change #128: No.

Speaker Change #128: Sure.

Speaker Change #129: Thank you so much a dish and all the best for and congratulations for the elevation all the best for you. Thank you. Thank you.

Speaker Change #130: Thank you.

Speaker Change #131: The next question is from the line of <unk> from Pictet asset management. Please go ahead.

Speaker Change #131: Yeah.

Speaker Change #131: Yeah.

Speaker Change #132: Thank you for your question with my question wasn't this contract renegotiation peacekeeping thing offered one contract to make such a large difference of 100 basis points on revenues could we ended the contract needs to like six 7% of our revenue base. It seems just impossible to me what what am I missing here. If you can help me understand please.

Speaker Change #133: The person that's a it's a renegotiation and you know re scoping of a large contract I don't think we're giving any further color on this so it's a large financial services contracts.

Speaker Change #134: But just wanted to be spun or is it like an accumulation of impact of several quarters. In this one quarter or this is just just pertaining to this quarter alone.

Speaker Change #134: No when you renegotiate the contract you will have you know a one time impact on that coming from that right. If it is a fixed price contract to.

Speaker Change #134: Whenever you negotiate that is likely to happen irrespective of whether it is a cumulated amount.

Speaker Change #135: Okay understood.

Speaker Change #135: Second question was on your.

Speaker Change #135: Martin kind of cause you agree to me winning joined M. B minus used to be like a band of 20 to 25 I think it was low to 'twenty two 'twenty food soon after he joined and now we are operating in a band of 'twenty to 'twenty two.

Speaker Change #136: Just wanted to understand like what has I mean is it.

Is it a function of the large deals that have.

Speaker Change #136: <unk> gone up a lot in our business makes us something else just kind of looking from that point to talk.

Speaker Change #136: Today, what has changed in the business complexion, which is leading to this a little margin obviously were a number of years not just doing it.

Speaker Change #136: I think they've shown that in a matter of fact, that's on that side that are live and that is when we had an elevated level of attrition as well as the elevated level of demand. We had to hire employees are you know at the opinion from the market demand supply.

Speaker Change #136: A question that came in the last two quarters. So that was one factor even during during the high growth environment of the other factors you know that business makes as well you know that.

Speaker Change #136: Pricing pressure that we had on the core part of the business I think there are multiple factors that has laid over the longer the period that you're talking about I've been here for almost 11 years. So you know I'm I'm, assuming that you're talking about when they joined us.

Speaker Change #137: But the coming back to your question in terms of you know let me see.

Speaker Change #137: Are they know what it is to grow margins from where we are today, our real estate debt and many times. They go to like find imagine for Libya. So there's everything that we're doing to improve margins.

Speaker Change #138: Alright, okay. Thank you much.

Speaker Change #139: Thank you very much.

Speaker Change #140: Ladies and gentlemen.

Speaker Change #141: You will take that as a last question.

Speaker Change #142: I'll now hand, the conference over to the management for closing comments.

Speaker Change #143: Thank you. So thanks, everyone for joining in a few comments from my side.

Speaker Change #144: First we are really excited of large deals whether it's $17 7 billion in the largest it's been in any financial year.

Speaker Change #145: Very very focus on cost efficiency consolidation with 19 deals over one <unk>.

Speaker Change #145: Second.

Speaker Change #145: We are doing incredible work and generated a I.

Speaker Change #145: We are really.

Speaker Change #145: I'm excited with the opportunities youre working across different.

Speaker Change #145: Different areas of impact one of the examples of 3 million lines of code and that we've developed regenerative AI.

Speaker Change #145: Language model is just amazing amazing types of results were seeing at this early stage of the agenda.

Speaker Change #145: Opportunity.

Speaker Change #145: Our next I imagine program is working well we are excited about it.

Speaker Change #145: And we want to.

Speaker Change #145: To keep our focus on it with a view to expand our margins.

Speaker Change #145: Overtime.

Speaker Change #145: But we are really excited about the acquisition we've done in engineering services.

Speaker Change #145: Phenomenon growth area, it's an a mall.

Speaker Change #145: Market, we understand rather be doing quite well in the European market and it's a space even within engineering services more Natalie in automotive which looks.

Speaker Change #145: Which looks really good.

Speaker Change #145: One of the things we didn't talk maybe a lot about in the call, but I just want to highlight was we had extremely strong cash generation at a $2 9 billion for the full year.

Speaker Change #145: With all of that we're really looking forward to delivering our growth and margin guidance for this coming year.

I'm looking forward to modern network that we've seen through all of these different activities.

Speaker Change #146: Thank you all for joining us and catch you at the next quarter call.

Speaker Change #147: Thank you very much.

Speaker Change #148: Ladies and gentlemen on behalf of Infosys that concludes this conference. Thank you for joining US and you may now disconnect your lines.

Speaker Change #149: Thank you.

Speaker Change #149: Yeah.