Q4 2025 Infosys Ltd Earnings Call
Ladies and gentlemen, good day and welcome to Infosys Limited Q4, FY 'twenty five earnings conference call.
As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions. After the presentation concludes.
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Please note that this conference is being recorded.
Sandeep: And I'll hand, the conference over to Mr. Sandeep <unk>, Thank you and over to Mr. Andrew.
Speaker Change: Hello, everyone and welcome to input their earnings call. Thank you holding at 525.
Speaker Change: Joining us on this one is quality and then maybe it's just that embody CFO, Mr. Jason <unk> and other members of the leadership team.
Speaker Change: We start the call with some remarks on the performance of the company subsequent to this call will be opened up for questions.
Speaker Change: Finally note that anything we say look like if you take a forward looking statement that must be done in conjunction with that is that the company faces a full statement and explanation of these risks is available in our filings are basically feed which can be found on www dot FCC Julie.
Speaker Change: I'd now like to pass on the call This island.
Sandeep: Thanks, Sandeep good evening and good morning to all of you. Thank you for joining us on this call.
Sandeep: We had an excellent year in financial year 2025, our revenues grew at four 2% in constant currency terms. Our operating margin was 21, 1%, we generated $4 $1 billion in free cash flow and we had $11 $6 billion in large deals.
Sandeep: In Q4, we had year on year growth of four 8% and operating margin of 21%.
Sandeep: We are seeing growing demand from clients to partner with them on AI, they're moving from a use case based approach to an AI led transformational approach with E. I agents, playing a critical role.
Sandeep: Working on the air projects by bringing Infosys Topaz agenda, they do and yeah and agent AI powered services and solutions for their benefit.
Speaker Change: Yeah, I work spans a wide spectrum of priority areas like process improvement engineering customer service cyber security and employee productivity.
Sandeep: We're helping a large U S financial services company navigate the transformation to deliver hyper personalized conversation.
Sandeep: <unk> powered cars to my experience with accuracy of over 80%.
Working with a euro based company to create mass distribution driving multiple AI first transformation projects that is automating 70% of that process landscape.
Sandeep: We continue with our strategic expansion with acquisitions abundant energy consulting space in the U S. One in cybersecurity in Australia, and with the new strategic partner, joining a joint venture in Japan.
Sandeep: All of these are areas of interest and a strategic focus for the company.
Sandeep: We have a set of capabilities that support our clients.
Sandeep: And the growth areas related to AI cloud and did you do and then the efficiency areas related to automation cost reduction lean and consolidation.
Sandeep: Based on what we're seeing in the environment today and building on our large deal wins in the past quarters.
Sandeep: <unk> for growth for financial year, 'twenty, six is zero percent to 3% in constant currency terms.
Sandeep: The environment is uncertain and we will execute our plans with agility, while keeping a close watch on events as they unfold.
Sandeep: Our margin guidance for financial year, 'twenty 'twenty six.
Sandeep: 20% to 22%.
Speaker Change: With that let me pass it on to J S for his views.
Speaker Change: Thank you good morning, and good evening, everyone and thank you for joining the call today.
Speaker Change: We entered financially or twenty-five with significant uncertainty relating to interest rates elections, and larger yours and geopolitical situations.
Speaker Change: Over the course of the reduction in loans had been to be a strong market position and reflecting a robust deal wins and improvement in discretionary spend and financial services.
Speaker Change: To better grow their not initial predictions.
Speaker Change: A year ago, when I started my journey of the CFO of emphasis with a vision to increase our market share. It spend in collaboration with business drive project Maximus to Exxon Ah patient margins operating margins and improved cash flow.
Speaker Change: I'm very glad that we have been able to achieve success in each of these parameters.
Speaker Change: Let me start by talking about the key highlights for the quarter end.
Speaker Change: We closed the year with revenue that's 19, one 3 billion a growth of 49, 2% in constant currency terms and people online and reported them.
Speaker Change: Acquisitions contributed contributed 80 basis points to the growth in financial year 'twenty five.
Speaker Change: Financial services and manufacturing to do above company average for the year I'm, particularly glad that operating margins for the financials, yet improved 50 basis points over FY 'twenty four to 'twenty, one behind one after absorbing multiple had been.
Speaker Change: This has been a key focus area over the last year and I wouldn't elaborate elaborate all of this nature.
Speaker Change: Sequentially revenue declined by people and 5% in constant currency due to a reduction in third party costs and seasonal weakness approximately two thirds of the sequencing revenue drop was due to a reduction in third party with the decline being higher than our expectation Barron's one drop was due to volume decline and lower calendar and working day to day win by two forces.
Speaker Change: Revenue increased by four 8% on a year on year basis in constant currency terms in Q4.
Speaker Change: Europe beauty, three X or the company right at 15% in constant currency terms driven by our focused approach of client mining example, but allows gives an acquisition you don't MELA gone for 30% of our revenues.
Speaker Change: Financial services and manufacturing grew double digit year on year, and $12, six and 14% respectively in constant currency.
Speaker Change: And it'll be done revenue growth for FY 'twenty five us explain one button 70 growth accompanied by operating margin expansion led to eight bunn peoples and growth in EPS terms on a normalized basis. It just seemed quite interest on tax refunds by FY 'twenty four and 'twenty five.
Speaker Change: We closed 24 large deals in Q4 with a D. C V. Two 6 billion 63, both enough. This was net new for the full year, we close 90, 16th the D. C. We have 11, six and 56%.
Speaker Change: DSO reduced by five days to 69 sequentially, but did the DSO, including Unbilled net of unknown reduced by three days to ADP.
Speaker Change: Yeah.
Speaker Change: Do you guys feel probably FY 'twenty five what I used to work at $4 2 billion 129, Buffalo net of it.
Speaker Change: It just hit for tax refund it stood at $3 5 billion, 12% off Med Coffey had.
Speaker Change: Headcount at the end of the Airbus 323578, an increase of 6000 Euro you hadn't yet had recently been contained at 14.1.
Speaker Change: Operating margin for Q4 was at 21% a decline of 30 basis points sequentially, bringing the financials yet margins at any 1.1 includes a fight 50 basis points from FY 'twenty for 11th.
Speaker Change: The major components of sequential margin change for the quarter as follows.
Speaker Change: Windows, and then 40 basis points.
Speaker Change: From compensation related costs.
Speaker Change: These bonds and bank from acquisition, mainly on account of amortization of intangibles, partly offset by a tailwind of 80 basis points from lower post sales customer support.
Speaker Change: They just find for Maximus 20 basis points from currency movement, and 20 basis points from a lower third party costs higher travel and visa costs were offset by new work or other costs, leading to a decline of 30 basis points sequentially utilization.
Speaker Change: Utilization, excluding trainees stands at 84 by night Unsaid make further reduced with $23. Six we hired 15000 Freshers. This year didn't expect Ohio, where 20000 fresh isn't quite ready for it.
Speaker Change: Ebay has increased by one 8% in financial year 'twenty five.
Speaker Change: Dumped on reported basis than at one 3% adjusted for interest and tax refund.
Speaker Change: The increase in margins by 60 basis points over FY 'twenty four was achieved despite multiple headwinds from salary increases I have made it will be in backroom loves being done bumps and acquisition related to the acquisition related amortization.
Speaker Change: These headwinds were more than offset through combined benefits from various tax under project Maximus, especially value based selling lean and automation improvements and critical portfolio improvement in utilization that we have.
Speaker Change: Being able to institutionalize the initiatives and make a structural shift in our approach. We expect project makes it must be further aiding margin improvements from current levels.
Speaker Change: Consolidated cash and cash equivalents stood at 556 billion at the end of the year you don't get expanded 7.13 in Q4, and how do we Ah stood at 29%.
Speaker Change: Coming to Castro's FY 'twenty five free cash goes out high yesterday, let at four 1 billion, including a 42% year on year free cash flow to the person that Buffett financing there was 129% and we expect that's like a 26 week I suppose to be about 100% of med drove it.
Speaker Change: Excluding income tax refund a peak I suppose for the yogurt at $3 5 billion up 21% year on year free cash flows as a percentage of net profit.
Speaker Change: We expect our effective tax rate for financial year, 'twenty six to be in the range of 29% to 30%.
Speaker Change: The board has proposed a final dividend of <unk> 22 for financial year, 'twenty five including the interim dividend. The total payout for FY 'twenty five will be <unk> 43, an increase of 13, 2%.
Speaker Change: Wonder if I didn't do it ended up blew by the shareholders.
Speaker Change: Close 24 leads in Q4 with a P. C V 026 billion, 63% of the net new vertical ways, we signed seven dealer financial services in the U S. Foreign manufacturing three in communication two each in high Tech and life Sciences, and one N P. J So region wise, we signed 12.
Speaker Change: Each in America and Europe.
Speaker Change: Coming to work.
Speaker Change: In financial services budgets are flat to slightly higher in regulatory compliance and cost management, we anticipate steady growth in capital markets and cards and payments in large global bank in the U S and large global banks in U S regional banks.
Speaker Change: Mortgage sector sees that we'll see an uptick in spending and interest rates are.
Speaker Change: It is going forward.
Speaker Change: Wrestling and air related propositions, they're gonna take appliances mitigation and cost management is expected to create growth opportunity we have seen selected.
Speaker Change: We have been selected as a partner for many of us.
Speaker Change: Manufacturing sector has grown double digits over the last few years for the sea Ray 25, but it doesn't work for auto and industrial manufacturing and flat footed.
Speaker Change: These intelligent tenant thumbs up that is market uncertainty doesn't trade that is unlikely to lead to a subdued spend and delayed decision making.
Speaker Change: Nothing at all especially in Europe continues.
Speaker Change: It had been glancing at this stage, there's a bottleneck in the supply chain pipeline remains healthy with focus on cost take out opportunities and in fact, the information then consolidation and some traction in ERP modernization program.
Speaker Change: Retail sector has been impacted by economic uncertainty, resulting in lower consumer spending and full market due to recent tariff announcements client budgets are expected to be tightened and there is increased caution decisions like because they are getting stretched for discretionary spend and larger deep a club deal that is peaceful because on AI cloud it stayed modernization cost takeout and interesting.
Speaker Change: I'm going to take capabilities.
Speaker Change: And as you usually do this dosing and services sector continues to grow and we see a strong pipeline of opportunities book.
Speaker Change: From existing and potential clients and as prices remain volatile, although the new markets and maybe.
Speaker Change: We had seen in downstream energy are opening in the U S region.
Speaker Change: There is an increase them and then back then they did work with services clients focusing on cloud migration and vendor consolidation.
Speaker Change: But it doesn't end there.
Speaker Change: Based on information and services and its new collection and self grid services that might be to that.
Speaker Change: But it isn't that we announced today of infant and that's what they can export.
Speaker Change: Opened new buying centers and energy trading and risk management area.
Speaker Change: Communication sector continues to remain tough basically saying funded under pressure with clients focusing on cutting costs restructuring and consolidation be a.
Speaker Change: Our growth will be led by the recent deal wins and opportunities in areas like cost reduction and database.
Speaker Change: Cybersecurity lower interest rates.
Speaker Change: Improve the profitability of telco Oems, which in turn can help increase I'd be budget.
Speaker Change: In high Tech most clients remain cautious due to the macroeconomic headwinds and that if announcements the discussion it's been still remaining under pressure that is increased margin pressure on account of committed spend on data centers.
Speaker Change: It's exiting FY 'twenty five global entered into easy to do.
Speaker Change: The leading with that if in fact of that unplanned sentiments in Spain are taking center stage. They do that assessment of the current macro environment macroeconomic environment and the visibility we have today, we expect a slight linguistics grow to the zero to 3% in constant currency does.
Speaker Change: This excludes the excellent acquisition that we announced today.
Speaker Change: And then and just assume that it doesn't.
Speaker Change: Third party revenues versus that 525 based on existing deals and the Nuomi, New Orleans and pipeline that we have today.
Speaker Change: Our operating margin guidance for the year is 20% to 22% we will continue to keep a close watch on economic environment and its impact on the current client budgets N V S. As a guidance as he broke but we're doing that with that we can open the floor for questions.
Thank you very much even though I'll begin with the question and answer session.
Speaker Change: Anyone who wish to ask a question you May Press Star then one on day Touchtone telephone.
Speaker Change: If you wish to do more yes on from the question queue.
Speaker Change: Starting to.
Speaker Change: Participants are requested to use handsets vital asking a question.
Speaker Change: Ladies and gentlemen, we will wait for a moment, while the question queue assembles.
Speaker Change: Participants on the best one to ask a question.
Speaker Change: Hum.
Speaker Change: The first question is from Atlanta uncle <unk> from J P. Morgan. Please go ahead.
Speaker Change: Thank you.
Speaker Change: On the fourth.
Speaker Change: Or can you talk a bit about.
Speaker Change: Sorry to interrupt you could use your audience.
Speaker Change: Can I ask you to comment on my Dad reception area. Please okay.
Speaker Change: It is it is it better.
Speaker Change: And also the network is not clear.
Speaker Change: Well, let me just make a quick.
Speaker Change: I'm going to go ahead, we can hear you now all right. Thanks.
Speaker Change: Okay. So the question was in terms of the fourth quarter can you talk a bit.
Speaker Change: Did the softness or develop a miss to guidance.
Speaker Change: In March or was it something you saw over the course of the book.
Speaker Change: So I'm glad as I said earlier.
Speaker Change: Two third of that decline was on account of third party costs and and the revenue related to that are.
Speaker Change: Some of the names that we had in the pipeline had slipped for this.
Speaker Change: This decline was higher than what we anticipated and the balance was the usual Q4 seasonality and the volumes are there.
Speaker Change: Claim that we sell itself.
Speaker Change: To do that I was clear enough within a decline was the on the back of a third party a question over there.
Speaker Change: I appreciate it.
Speaker Change: Just curious.
Speaker Change: More and more sort of directly at our core deposits.
Speaker Change: Yeah.
Speaker Change: Yeah. So generally you know the deal happened towards the towards the end of the quarter and that's with us.
Speaker Change: United flipped from there.
Speaker Change: Okay understood.
Speaker Change: I didn't see it seems to imply something like one eight to one 9%.
Speaker Change: Yes.
Speaker Change: Could you highlight at this point.
Speaker Change: This seasonality or is it going to be there.
Speaker Change: And given the.
Speaker Change: You might be seeing right now.
Speaker Change: I'm sorry can you repeat the question wasn't very clear.
Speaker Change: Hi.
Speaker Change: The guidance does it imply a normal seasonality for you.
Speaker Change: Yes.
Speaker Change: As we said earlier, we do see a heightened.
Speaker Change: Uncertainty uncertainty and enrollment and that's the reason we have given a pretty boring guidance, so depending on which end of the guidance Youre looking at the seasonality will also change.
Speaker Change: He will also change.
Speaker Change: But outside of that Oh, we are expecting normal seasonality.
Speaker Change: Okay understood and just the last question in terms of you spoke a lot about.
Speaker Change: The transformation that clients are expecting from you.
Speaker Change: Ah you infusing AI into existing contracts.
Speaker Change: Might lead to any kind of revenue deflation, but you have to.
Lee: Hi, Andrew This is Lee so.
Speaker Change: So first he is.
Speaker Change: As part of all the discussions on the new views, we're using AI in many of our existing programs. This year, we are seeing benefits.
Which relate to how we can now use <unk> with clients in different areas. So as a composite what we saw last year, 4% four 2% growth, we feel pretty confident that we will see benefits from it are even as we see some productivity improvements or we don't see any.
Speaker Change: In terms of the revenue on that.
Speaker Change: Yeah.
Speaker Change: Okay. Appreciate it thank you and vessel.
Speaker Change: Thank you.
Next question is from the line of command Rakesh from BNP Paribas. Please go ahead.
Rakesh: Hey, Hi, good evening and thank you for taking my question. My first question was there you spoke about that detail are you slip towards the end of the quarter. So evil how is the volume trend during the quarter and does that imply that as they come back in the next quarter.
Speaker Change: So you're expecting good third party contribution to be higher in FY 'twenty six.
Speaker Change: But then if you look at our what I would say it.
Speaker Change: Through the quarter, we had a softer start at the beginning of the quarter from volumes, but they do but we did see some recovery there in terms of volumes.
Speaker Change: But on the third party.
Speaker Change: We are expecting for FY 'twenty, six third party to be lower than FY 'twenty five.
Speaker Change: Considering that the deals that we've signed and the needs that we have in the pipeline.
Speaker Change: So that is baked in.
Speaker Change: And volume trend during the quarter.
Speaker Change: Yeah, the volume tendering, whether you'd be had a softer start January agenda leaves us off a month and then the volumes are.
Speaker Change: Backing up and we saw similar trends.
Speaker Change: This quarter as well.
Speaker Change: Okay. Thanks.
Speaker Change: My second question was on a longer term perspective over the last two years, we have seen Aldo.
Speaker Change: Fraud, which was created in.
Speaker Change: Many of their deals with really new artwork same keywords critically injuring many of them, but I'm going to have we saw the impact from back in terms of revenue growth you see there is still some scope left.
Speaker Change: Talk to you are assessing the project again in my career.
Speaker Change: Our journey continues Florida under longer there is more of the assessment of the projects, which are getting start happening. The VEB has seen over the last year.
Speaker Change: Oh hi.
Speaker Change: What what.
Speaker Change: But as you know the changes that we have seen in the economic environment impact.
Speaker Change: Very recently I know, what a short span.
Speaker Change: Having said that the discussions we've had specifically on some of the do you view a sign in the recent quarters, we have not seen a change in that like the trajectory that we were anticipating at this stage.
Speaker Change: We'll keep a look out on that as we develop it.
Speaker Change: Thanks for that.
Speaker Change: A clarification for my question was more around that.
Speaker Change: <unk> now that we are offering in terms of how bad news, which we are doing quite a claim.
Speaker Change: I'll have the corner portfolio never Patrick improve so that we are no longer the Madagascar, because that's right, yes, its been copied or do you still see that there are some of the projects, we choose that that mix, which could be.
Speaker Change: I mean, what we saw in the bus was more of a.
Speaker Change: How do you go about what we saw in the past was more of the discretionary spend.
Speaker Change: <unk> had put us put desktop, but they really haven't done that.
Speaker Change: If the if the environment the theater trade significantly from where we are the clients. When we look at some of that at this point in time, we're not looking we're not seeing.
Speaker Change: Any of that happening significantly.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Thank you.
Next question is from the line of M. B shaped potok from Motilal <unk>. Please go ahead.
Speaker Change: Yeah, hi, thanks for the opportunity.
Speaker Change: My first question was.
Speaker Change: Could you. Please just expand a bit on the underlying assumptions on the top end of our guidance.
Speaker Change: Do we assume an acceleration in deal wins.
Speaker Change: To be achieved or do you think.
You know a better than expected ramp ups could probably take us 2% to 3% that's fun.
Speaker Change: Second question was I'm forgetting is probably partly answered, but considering peers have called out some deferrals or Keith you know some some uncertainty in decision making.
Speaker Change: How does the next immediate quarter look in terms of let's say.
Speaker Change: And do you see any significant risk in the in the extreme in the extreme shock down and lastly, you know do the current events kind of you know Bush Bush down.
Speaker Change: Covering chalk second deals a bit more and do you feel.
Speaker Change: Secondly is that again something that has started to take off thank you.
Speaker Change: Okay.
Speaker Change: Yeah. So you know leading up to guidance, we always run multiple models that that leads us to the top end bottom end or the middle end of the guidance.
Speaker Change: But at the same process that we have followed even at this point in time.
Speaker Change: The reason that we gave out three bond guidance was because that is an uncertainty so at the lower end of the guidance we have baked in.
Speaker Change: Some further deterioration in the environment and at the top end of the guidance, we have baked in a steady do marginally improving environment. So that's how the guidance has been a standout.
Speaker Change: But from from the environment perspective.
Speaker Change: Having said that under that I'm done, we've not really seen any major I'm done such as finding time, a major closures or the.
Speaker Change: You know, we we do see clients being cautious that this isn't making is you know is.
Speaker Change: As the lead in buckets.
Speaker Change: But as I said you know.
Speaker Change: What we see today had been baked in.
Speaker Change: In the lower end of that I didnt, so from that perspective.
Speaker Change: Got it I think that that's the last thing I'll talk secondly, if you could.
Speaker Change: Just clarify that.
Speaker Change: Obviously, you can do you have any follow up question.
Speaker Change: Yeah, Hi, I'm out of it.
Speaker Change: Yes, we can hello.
Speaker Change: Yes.
Speaker Change: Just this last week on the be taken back from Q1, and you know how do we how do we just Martin that data. Thanks.
Speaker Change: Yeah. So let me take you know most of our employees got delayed.
Speaker Change: The wage hikes in in January and the the middle level, two senior level employees will get wage hike effective.
Speaker Change: First of April.
Speaker Change: The impact of that has been baked into guidance that we've given.
Speaker Change: As you could see further financial debt 25, we have a we.
Speaker Change: We have improved our margins by 50 basis points. We are now at 21 by one.
Speaker Change: Despite all the headwinds whether it was may take whether it was higher variable pay.
Speaker Change: The large deal ramp ups are you know.
Speaker Change: Acquisition related costs and <unk>.
Speaker Change: Going forward is to improve from where we are in the current environment.
Speaker Change: Understood. Thanks, a lot.
Speaker Change: Thank you.
Speaker Change: Next question is from the line of quarter over to Danielle <unk> from Morgan Stanley. Please go ahead.
Danielle: Hi, Thanks for taking my question. My first question is on small God I'm, sorry to interrupt you can I ask a question will speak a little louder. Please.
Speaker Change: I am not worried even though.
Glenn: Yes, Glenn.
Glenn: Hi, My first question is on small little involvement have you seen any change compared to a few months back and is it fair to believe that the midpoint of guide assumes a stability in that environment on those small little correct.
Glenn: So as I said, you know that our latest models that leads to multiple.
Glenn: End of the guidance.
Glenn: At the lower end I repeat we have.
Glenn: Assumed deteriorating environment and at the upper end, we have assumed a.
Glenn: Steady those marginally improving our environment. So in the middle is anywhere between the two.
Glenn: Okay got it second.
Glenn: Second question is on margins for FY 'twenty six normally what we have always been hearing US act when growth improves it creates an operating leverage and provides a cushion to improve margins but.
Glenn: If I take just make point it feels like it's kind of slowing compared with FY 'twenty. Five so is it fair to believe that kind of create some operating deleverage and create some pressure on margins what would be the levers to offset that and still be you know Ah stay within the band but didn't.
Glenn: If I 45 range. Thank you.
Glenn: So that if you look at the last year also we had.
Glenn: <unk>.
Glenn: <unk> coming into the year, because we had the previous comp was rollout a number it's a full year impact of that came into this year and then we had additional come that we rolled out in January so.
Glenn: There was accumbens back there was an impact on the large deal that we signed in the previous year.
Glenn: 90 bps of impact from the acquisition that we did.
Glenn: And despite all of those headwinds we have been able to improve margin.
Glenn: 50 50.
Glenn: Despite lapping a rewarding our employees.
Glenn: Better to a higher variable pay through the year. So we are confident at this point in time that there are opportunities.
Glenn: Where we can double down and improve margin. So at this point and I'm the analyst who have good margins from where we are.
Glenn: Thank you.
Glenn: Thank you.
Speaker Change: Next question is from the line of Jonathan Lee from <unk>. Please go ahead.
Jonathan Lee: Great. Thanks for taking my questions first question can you clarify what the inorganic contribution is contemplated in your outlook for fiscal 'twenty six.
Speaker Change: So Jonathan the guide.
Speaker Change: Guidance does not include the acquisition that we announced today, we haven't closed them yet the board has approved the acquisition, we still have to go through the clothing commonalities.
Speaker Change: That will take a few weeks, maybe a month or so a month or so.
Speaker Change: So depending on the closure, we will figure it out.
Speaker Change: And the next next cycle unabated at this point in time to clarify the guidance does not include the.
Speaker Change: The acquisition that we announced today.
Speaker Change: Thanks for that clarification second how would you characterize the pricing environment through the quarter and how does that compare to what you've seen since the beginning of this fiscal year.
Speaker Change: We continue seeing right stable pricing he went through the quarter you know generally at the overall business levels.
Speaker Change: Everything that has changed.
Speaker Change: The environment has been very recent so we've not really seen.
Speaker Change: Any significant impact coming from them on the pricing environment.
Speaker Change: Having said that you know one of the one of the key pillar.
Speaker Change: On our cost optimization.
Speaker Change: Foundation of our margin improvement program is a value based selling.
Speaker Change: That's not only pricing that does everything around pricing, including you know getting the change request further scope scope creep rotating our employees' long tenured employees across projects, so that we get better pricing on them, having a different day.
Speaker Change: <unk> pricing models for different services. So all of that has helped in the last year and that they never come continues in this area.
Speaker Change: I appreciate that color. Thank you.
Speaker Change: Thank you.
Speaker Change: Next question is from Keith.
Speaker Change: From BMO capital markets. Please go ahead.
Speaker Change: Hi, Thank you very much for taking my call.
Speaker Change: I wanted to return to AI.
Speaker Change: On the delivery side or the <unk>.
Speaker Change: And really.
Speaker Change: I wanted to go back to the first question, which I wasn't sure I understood your answer but.
Speaker Change: How is it changing the nature.
Speaker Change: Of pricing discussions into our structure.
Speaker Change: As of late and how do you think that's going to unfold in 2000 and FY 2026.
Speaker Change: In other words does it.
Speaker Change: Does the deflationary nature of AI is that impacting.
Speaker Change: Our performance based contracts or.
Speaker Change: Or any structures that you're putting into contract and is it leading to.
Speaker Change: Any different.
Speaker Change: Price discussions and if you could also call out is there an area of whether it's <unk> or deployment or ADM.
Speaker Change: <unk> that you see using AI more and with delivery or is it all of the different areas is there any one area.
Speaker Change: Specifically within your portfolio or a solution portfolio that you think.
<unk> will be impacted more by delivery. Thank you very much.
Speaker Change: So on AI.
Speaker Change: And pricing what we are seeing is.
Speaker Change: Data areas, where we have discussions with clients and this is building up to the last.
Speaker Change: Year to the quarters, and we anticipate seeing that going ahead as well.
Speaker Change: Aware for example.
Speaker Change: Large customer service programs, we see that there could be benefits to the clients of 20% to 40%.
Speaker Change: If there are different areas where.
Speaker Change: Generator of AI can be applied.
Speaker Change: Those discussions are very much at the forefront on clients' minds.
Speaker Change: Sometimes the client view may be larger than what we are seeing in realization.
Speaker Change: So we have.
Speaker Change: The choice to make that many.
Speaker Change: Many times, they're aligned and AI is one component of automation of lien than AI, and then consolidation all of which give some benefits in a cumulative way due to the client so we see that ongoing.
Speaker Change: With that.
Speaker Change: We also see EA gives us some new opportunities.
Speaker Change: There are new projects, we are doing for example in credit risk.
Speaker Change: AI platform for telco.
Speaker Change: These these give us new areas for revenue as well as a cumulative while all this was still going on last year, we saw the 4%.
Speaker Change: Increase in 12, 2% increase in revenue and that's the way we see it at a composite level.
Speaker Change: On that the superimpose the changes in the economic environment, which is where we see some differences as Jay Ash was sharing earlier in the range of the guidance.
Speaker Change: That makes sense.
Speaker Change: Okay, just one for.
Speaker Change: For my follow up when you mentioned.
Speaker Change: There are some situations, where AI is generating 20% to 40% efficiency gains and so I think that's sort of similar to what.
Speaker Change: IBM and Accenture have said on a like for like pricing in that situation, where you can deliver such meaningful efficiency gains to the client.
Speaker Change:
Speaker Change: How are those efficiency gains shared with.
Speaker Change: With the customer in other words.
Speaker Change: Sure.
Speaker Change: Revenues go down by 2040% or how is that shared.
Speaker Change: In terms of just on a like for like basis for a given contract and Thats. It for me. Thank you.
Speaker Change: So there.
Speaker Change: Where we've seen that range has been more for example on customer service.
Speaker Change: We don't have a large sort of voice business, we typically.
Speaker Change: Bid on a combination of technology and operations and part of it could be that typically these are not.
Speaker Change: Our existing book of business that customer service is not something we have a large book of business.
Speaker Change: In terms of shedding okay.
Speaker Change: Ways. These are shared.
Speaker Change: Depending on the client situation like there are situations, where there is a consolidation.
Speaker Change: Activity with a client where there's a shared in some part.
Speaker Change: Customer service is not within our portfolio and there is consolidation, which gives us some benefit so it's not like.
Speaker Change: One number would you get shared then with clients, but it is shared.
Speaker Change: Okay.
Speaker Change: Okay. Many thanks for the answers and wish you all the best of luck.
Thank you.
Speaker Change: Thank you.
Speaker Change: Next question is from the line of sorry, Andrew Gwynn from Citi. Please go ahead.
Andrew Gwynn: Yeah. Thanks, a lot suddenly you guys. Just one question you have been calling out our improvement in discretionary spending through the course of FY 'twenty five.
Speaker Change: Or did you see in the month of March and April so far and I apologize if you've already answered this question before.
Speaker Change: So in the March month has been usual I don't think we haven't seen a significant change either way.
Speaker Change: In the environment.
Speaker Change: In terms of volumes.
Speaker Change: We did have positive volumes in months.
Speaker Change: Understood. Thank you.
Speaker Change: Thank you.
Abhiseka Kumar: Next question is from Atlanta, Abhiseka Kumar from JM financial Please go ahead.
Speaker Change: Yeah, Hi, good evening, Thanks for taking my question.
Speaker Change: Another question on cost of funds.
Speaker Change: Firstly, let me see.
Speaker Change: Hum.
Speaker Change: The booking.
Speaker Change: The current pipeline complex gondola does not mean that they'll come back in Q1 on that.
Speaker Change: Q1 was mainly related question is is the visibility getting into Q1.
Speaker Change: Similar to what we have seen maybe Q1 of last year.
Speaker Change: Any color on that thank you.
Speaker Change: So I would say if you could repeat the first question on the third party I didn't get it right.
Speaker Change: Yeah. So I mean, you said that some of the weakness in Q4 was because.
Speaker Change: Some third party data.
Speaker Change: Spillover.
Speaker Change: Is that just didn't come back in Q1 on 90, something that you had lost.
Speaker Change: Yeah, So I wish I could this final dime.
Speaker Change: The third party costs.
Speaker Change: Earlier.
Speaker Change: One two third of our decline was because of the third party or third party costs and revenues have all those deals slipped.
Speaker Change: It is uncertain at this point in time.
Speaker Change: And when these deals come back.
Speaker Change: So at this point in time that flip you should read that and convention of the fact that I also said.
Speaker Change: Slide 26 third party costs in revenue are going to be lower than FY 'twenty five third party costs and revenue.
Speaker Change: Okay.
Maybe in that context.
Speaker Change: Overall Q1, given we are in that mid stuff.
Speaker Change: Macro.
Speaker Change: How are we looking at Q1 I'll come back to Phoenix.
Speaker Change: Yeah. So I think both are yours.
Speaker Change: Unique factors that led to an uncertainty I don't know if you can put in a quantifiable terms, whether it is a similar amount.
Speaker Change: We started the year last time they were uncertain it is around interest rates.
Speaker Change: Geopolitical tension.
Speaker Change: Hum the world was going through elections.
Speaker Change: It really is around that and today, we have uncertain. It is around that if we.
Speaker Change: We don't know to the extent the rates to the extent to which countries will get impacted how those countries will retaliate.
Speaker Change: The timing of that and that the downstream impact of that so I think all of that is uncertain as we speak a V shape, but.
Speaker Change: The guidance that we've provided at this funding dynamics, what we see today.
Speaker Change: Our philosophy on guidance has been to reduce our symmetry of information between us and our investors and we are guiding what we see today.
Speaker Change: So one quick question on margin.
Speaker Change: To Colorado.
Speaker Change: One 5% decline coming from third party.
Speaker Change: But the margin uplift because of that has been very limited.
Speaker Change: Basis points I'm, just trying to reconcile.
Speaker Change: You know why the margin uplift.
Speaker Change: Okay.
Speaker Change: I will take the the margin uplift on that is around 20 basis points. If you look at the reduction in third party cost is $100 million, obviously, we make some margin.
Speaker Change: On those deals as well so you will only get the benefit to the extend of the Delta margin.
Speaker Change: The company was the third party deals and that is.
Speaker Change: The margins are impacted.
Speaker Change: So I'm going to that centrally and onto that.
Speaker Change: Yeah.
Speaker Change: Thank you.
Speaker Change: Question is from the line of Sandeep Shah from <unk> Securities. Please go ahead.
Sandeep Shah: Yeah. Thanks, Thanks for the opportunity.
Just wanted to understand in this uncertain macro environment.
Sandeep Shah: Discretionary spend is difficult to predict right now, but at the same time clients, who smell bad.
Sandeep Shah: Investment so is it fair to assume clients may start in terms of growing doubling down on outsourcing cost take out kind of what they're.
Sandeep Shah: But it does seem as coming into your discussion on the Zip.
Sandeep Shah: As you back the pipeline improve on the cost takeout and be a part of the deal.
Sandeep Shah: They fight with <unk>, but.
Sandeep Shah: So they are first.
Sandeep Shah: The changes in the economic environment.
A recent and also in a short period.
Sandeep Shah: So not everything is understood about that having said that learning from the past.
Sandeep Shah: We typically see that this sort of environment will provide more cost takeout opportunities consolidation automation lead.
Sandeep Shah: We have also pivoted, our sales activities into focusing and building more proactive pitches to clients on that area.
Sandeep Shah: We'll now see how that executes and what's the dynamic of the economic environment, but in general.
Sandeep Shah: Our portfolio has got that ability, which is also on AI cloud and also on cost takeout should now be emphasizing much more on the cost takeout.
Sandeep Shah: Okay.
Speaker Change: That sounds a little work on fitness so they don't track towards you.
Speaker Change: The seasonality of one night you picked out a thing which may cause you you run in that fight six guidance assumptions for this year.
Speaker Change: So you know and then typically.
Speaker Change: Do it is softer because you have furloughs you have.
Speaker Change: We're looking at calendar days et cetera, whether that kind of that part of the seasonality will remain.
Speaker Change: As we see today I don't see I don't expect that seasonality to change but beyond that.
Speaker Change: In an uncertain environment like this it's very difficult to predict how the quarter's been a win.
Speaker Change: Look like.
Speaker Change: I said earlier at the bottom in the higher end of the guidance, we have guidance we have factored.
Speaker Change: The scenarios that and depending on how that will play out we'll see how the quarters progress but overall.
Speaker Change: Overall, we don't see a significant change in seasonality.
Speaker Change: Beyond the uncertainty.
Speaker Change: Okay, and just last one bookkeeping question.
Speaker Change: Tons of your margin walk you had said.
Speaker Change: Many latex pause being 40 bps as a headwind.
Speaker Change: The margin is it one of them may not reoccur in the fourth quarter of the coming financial year.
Speaker Change: As you.
Both acquisition.
Speaker Change: Closed at the end of.
Speaker Change: <unk> may be consolidated for nine months.
Speaker Change: The lag for EBIT.
Speaker Change: Revenue growth.
Speaker Change: So that's right.
Speaker Change: The fundamentals of.
Speaker Change: Charles that we took.
Speaker Change: On.
Speaker Change: Related to the acquisition is not going away.
Speaker Change: If you recall, we had said earlier.
Speaker Change: Here that.
Speaker Change: The automobile sector, especially in the in the gentlemen.
Speaker Change: European markets has been seeding southwest and that is that we have reassessed.
Speaker Change: Customer intangibles, so the value of customer intangibles, and we had to take.
Speaker Change: A charge on that so from that perspective.
Speaker Change: Enough.
Speaker Change: Coming to the second question was.
Speaker Change: Yes.
Speaker Change: The impact of the acquisitions that we closed in the Q1 the impact the <unk>.
Speaker Change: Benefit that we would get would be 40 to 50 basis points for the full year, which is not baked into the guidance.
Speaker Change: Okay, Thanks, and all of this.
Speaker Change: Thank you. Thank you.
Speaker Change: Next question is from the line of my Board a singer from the Walmart, especially in equities. Please go ahead.
Speaker Change: Hi, Thanks for taking my question.
Speaker Change: Questions from my side.
Speaker Change: Traditionally associated with an obstacle.
Speaker Change: My name is too big.
Speaker Change: Big brands.
Speaker Change: And the second part and get smarter.
Speaker Change: Okay.
Speaker Change: Let's see.
Speaker Change: Did you see.
Speaker Change: This part of your.
Speaker Change: Question.
Speaker Change: Yes, I think manav.
No.
Speaker Change: Thank you.
Speaker Change: Globally.
Speaker Change: Q1.
Speaker Change: Okay.
Speaker Change: Do you see that impacting the NP.
Speaker Change: No.
Speaker Change: And this year.
Speaker Change: We need to.
Speaker Change: One more.
Speaker Change: Yeah.
Speaker Change: Also note that the.
Speaker Change: On the Boston.
Speaker Change: Okay.
Speaker Change: Hmm.
Speaker Change: The boots on UGG and your wife's wasn't very clear it was getting 100 in between can you summarize the question again please.
Speaker Change: Sure.
Speaker Change: Did we lose everybody.
Speaker Change: Yes on the line for the partners have been trumped him on to the next participant.
Speaker Change: Question is from the line of Nathan Padmanabhan from <unk>. Mr. <unk>. Please go ahead.
Speaker Change: Yeah good evening.
Speaker Change: The JV that we signed with Mitsubishi.
Speaker Change: That's different from the one that <unk> signed.
Speaker Change: In the early part of the last decade.
Speaker Change: Just give some context.
Speaker Change: So this is not a.
Speaker Change: Gave you that we are saying we are inducted Mitsubishi in the existing JV and we have.
Speaker Change: Diluted share by 2%. So it's an existing JV, where we have just indicated but a strategic partner in the JV.
Speaker Change: It's.
Speaker Change: And they will do well a long term relationship with a large a giant in Japan.
Speaker Change: Got it got it.
Speaker Change: And then just one last question is.
Speaker Change: As we entered the last year.
Speaker Change: Fiscal 'twenty five.
Speaker Change: We had a large order book.
Speaker Change: Larger D.
Speaker Change: We had to execute it sort of it doesn't the first half of last year.
Speaker Change: We entered this year.
Speaker Change: How would you contrast that in terms of the order backlog.
Speaker Change: Relative to last year.
Speaker Change: I'm asking this considering that our organic growth. This year. It is possibly add on three 4%.
And in that context.
Speaker Change: Guidance at the top end is almost similar.
Speaker Change: So just wanted some context in terms of.
Speaker Change: It was then and how it is not.
Speaker Change: So yes.
Speaker Change: You are right. If you look at just the purely debt.
Speaker Change: The quantum of the deals that we're.
Speaker Change: We're getting ramped up in Q4 of the previous year and compare that to quanta was built around getting ramped up you would see a stark difference you will see some difference.
Speaker Change: But we should also remember that many of those deals for larger deals and a longer duration deals versus what we have today.
Speaker Change: Which so.
Speaker Change: There is a delta between the tenure of the deals and Mega deals that generally we have a much longer tenor deal you will see some of the filings expected to Mega deals that were done with that we also saw continued also earlier so.
Speaker Change: We should see that in that context.
So it's not that these deals have any anniversary impact at the moment.
Speaker Change: The new brands that you're sort of anticipating that.
Speaker Change: As we enter it.
Harris: Secondly, Harris.
Speaker Change: Yes.
Speaker Change: I think I'll leave most of them.
Speaker Change: Yes, no sorry.
Speaker Change: So if you look at most of the deals that we had talked about earlier.
Speaker Change: Which was signed in FY 'twenty four.
Speaker Change: <unk> Q4, FY 'twenty four.
Speaker Change: Then we saw the benefit of them in FY 'twenty five.
Speaker Change: So they are pretty much at a steady state at this point in time.
Speaker Change: Got it got it that's very helpful. Thank you so much and all the big day.
Speaker Change: Thank you. Thank you.
We take the follow up question from the line of <unk> from Nomura. Please go ahead.
Speaker Change: Yeah, Hi, I hope I'm audible.
Speaker Change: Oh, I'm, sorry, I got dropped in between.
Speaker Change: Yes, sorry. So my question was basically on the group is that you'd had been expecting but the last two years of our growth has been pretty much first half heavy.
Speaker Change: And the seasonality of industry anonymously somebody coming into P. And Q4 at this time a lot of our peers have called out.
Speaker Change: Weakness in Q1, especially because of the uncertain macro so do you believe that could impact the growth trajectory that we see through the year. It could be more skewed towards I think you would do in Q3 or maybe the second half and therefore itself might not be as good as we have seen over the past.
Speaker Change: A couple of years now something like that that could be really big.
Speaker Change: So we really as I said earlier from a seasonality perspective, I don't see I mean, the regular seasonality perspective, I don't see a change in seasonality the working days calendar days impact would be similar to earlier years furloughs will remain.
Speaker Change: The uncertainty is the only unknown factor and we'll have to see how that pans out in Q1 Q2.
Speaker Change: And the implications of that to see whether Q1 Q2 is going to be better or worse versus earlier so.
Speaker Change: In chart.
Speaker Change: The uncertainty remains that the reason why we are giving that rebound guidance at the bottom end of our guidance we have seen XP.
Speaker Change: We expected higher end identity at the top end of the guidance.
Speaker Change: If we end up there than you would see regular seasonality in HR next June.
Speaker Change: At the top end of the guidance, but yes, the bottom end of guidance, it's going to be unpredictable.
Speaker Change: Right right. Okay. So okay. Let me just ask maybe just a follow up on that.
Speaker Change: Are you expecting any oh, let's say unexpected.
Speaker Change: Extra extra weakness in Q1 because of the uncertain macro at this point of time.
We will we don't give quarterly guidance. Unfortunately.
Speaker Change: Although I was going to take two out of what our guidance and that is what we see today.
Speaker Change: No just I was just saying my luck Luckily on the margins front.
Speaker Change: Where do we stand on a project like someone's Gonna Vic do you believe you have some still some oh.
Speaker Change: From that a lot of you're mostly done with that project.
Speaker Change: So if we look at this year despite multiple headwinds we have been able to improve margins of 50 basis point drag we did absorb.
Speaker Change: <unk> that we did in the previous year full year impact of that came in at 525.
Speaker Change: Gave higher variable pay to our employees.
Speaker Change: We have had ramp ups of many of the Mega deal retail with the lower margins at the beginning of the year.
Speaker Change: We had an impact from our acquisition of intangibles from the acquisition. So I think we have absorbed all of that and delivered 50 basis points of margin.
Speaker Change: There are multiple tracks, which are still under way in under the project value based selling is still delivering value.
Speaker Change: Lean automation has been creating value. So I think there are opportunities.
Speaker Change: That that makes us believe that there is still.
Speaker Change: The opportunity to improve margins from where we are in at the end of it.
Speaker Change: Okay got it great. Thank you so much for taking my questions and wish you all the best.
Speaker Change: Thank you both thank you.
Speaker Change: Next question is from the line of monarch tonnage from Axis capital. Please go ahead.
Speaker Change: Hi, Thanks for the question the team made a mark regarding the fact that we should probably be expecting some decline in the cost of pass through or the pass through revenues in the cycle.
Speaker Change: <unk> seen a very steady increase from this Friday I'm rooting for multiple personal thing you can use to promote politically personally with news and if like what you say.
Speaker Change: Is there anything on the calendar that is changing because of issues and massage.
Speaker Change: December.
Speaker Change: December including a drag.
Speaker Change: On the revenue growth and how should we be thinking about this number.
Speaker Change: <unk> over the next four years.
Speaker Change: Oh, sorry.
Manav: Sorry, Manav. This is you know the third party because typically the costs, which are embedded in a large transformation deals.
Speaker Change: Our multiyear large transformation deals.
Speaker Change: We know what the deals that we've signed in the year and we know what are the deals in the pipeline when we analyze that those two components is then when we estimate what the deal what the cost is going to be and at this point in time looking at what we are saying and what we have in the pipeline.
Speaker Change: We expect FY 'twenty six third party cost to be lower than FY 'twenty five.
Speaker Change: Can you believe in the science, it's going back to possibly.
Speaker Change: It used to be effective for anyone.
Speaker Change: Yes, yes, I mean, eventually we will have to see where we are.
Speaker Change: And up level, but.
Speaker Change: When the large.
Speaker Change: Many of the Mega deals that we have we have signed in the past those thoughts.
Speaker Change: Those transformation.
Speaker Change: Finishes, we will we will have significant deductions as well.
Speaker Change: Sure.
Speaker Change: Basically feature.
Speaker Change: Thank you.
Speaker Change: The next question is from the line of Ashwin Mehta from Ambit capital. Please go ahead.
Ashwin Mehta: Alright, thanks for the opportunity just one clarification.
Speaker Change: Our sports channels.
Speaker Change: We have almost 11 45 crore.
Speaker Change: Sorry.
Speaker Change: CN professional charges I haven't seen a negative number.
Speaker Change: So what is driving this.
Ashwin Mehta: So ashwin. This is this is an insurance claim that we got with respect to <unk>.
Speaker Change: The cyber event that we had.
Speaker Change: Last year.
Ashwin Mehta: So there is a benefit of $20 million that we got.
Ashwin Mehta: I didn't call it out in the in the margin walk because they were Nevada.
Ashwin Mehta: Other negatives against that like utilization et cetera.
Ashwin Mehta: No offset each other.
Ashwin Mehta: Utilization.
Ashwin Mehta: And then a follow up in terms of the brokerage income support as well the reversal seems to me.
Ashwin Mehta: Hi.
Ashwin Mehta: Slide 12.
Ashwin Mehta: This is Matt.
Ashwin Mehta: No.
Speaker Change: Wholesale customer support is typically the seasonality there. So typically if you look at last few.
Ashwin Mehta: And you will see.
Speaker Change: A reduction in Q4 generally on that because many of the projects.
Speaker Change: Typically come to an end with the financial year and so that's one reason. The secondly, then is of course.
Speaker Change: There's a lot of things, which are which we are driving under project Maximus, whether it is industrial effort optimization, whether it is in terms of change requests.
Speaker Change: Tighter control of many of those projects all of that reflects into lesser warranty in terms of escalators less of R&D lesser cost in future on many of those projects. So all of that reflects.
Speaker Change: N CSR.
Okay.
Speaker Change: Alright, Thanks, a lot perfect platform.
Speaker Change: Thank you.
Speaker Change: Kim.
Speaker Change: Next question is from the line of <unk> <unk> from BMO capital markets. Please go ahead.
Speaker Change: Yes. Thanks for the opportunity set is are there any silver lining to the current macroeconomic situation that on tablets.
Speaker Change: Are you, having any conversations with declines around the supply chain solutions or anything like that.
Speaker Change: So what.
Speaker Change: What we see is we have a portfolio, which has got both things for growth like AI cloud digital but also very good solutions for cost and cost efficiency automation.
Speaker Change: Activity from AI lead.
Speaker Change: We are making sure that those are getting already in this short time period from the changes in the economic outlook, we are making sure those are getting.
Communicated discussed with clients.
Speaker Change: And my guess is.
Speaker Change: We don't know the like the impact yet, but we are going to make sure that if clients are looking for cost and efficiency will be there on supply chain. We are working to make sure that we provide because we our consulting business.
Speaker Change: Can give some insights we also have supply chain Tech solutions.
Speaker Change: Clients are rerouting the supply chains are they wanted to optimize it.
Speaker Change: How we can support the minute.
Speaker Change: Sure.
Speaker Change: Positioning for it we don't know right now what is the potential impact benefit, but we are definitely positioning for the cost and the sort of activities.
Speaker Change: Okay. My second and last question has to do with AI.
Speaker Change: And I did sit R&D.
Speaker Change: Do you have a client or a separate budget for Ginnie III or is it coming from savings that youre doing on nominal projects.
Speaker Change: As things stand today.
Speaker Change: Yes, I think I mean, if I look back at the last year overall.
Speaker Change: Budgets are there now there are some cases, where a client is doing large transformation, we are able to fund that transformation.
Speaker Change: From.
Speaker Change: Let's see a large opportunity on consolidation or cost efficiency.
Speaker Change: In some cases because at the start.
Speaker Change: I was a little bit more distributed not so much central.
Speaker Change: There were also some sort of distributed it within the company to different divisions and budgets and so on.
Speaker Change: My guess is.
Speaker Change: It will become more and more one budget for the company from which they will be spend on.
Speaker Change: Our services for AI and so on so we will see how that plays out but that's what we anticipate.
Speaker Change: Okay. Thank you.
Speaker Change: Thank you.
Speaker Change: Ladies and gentlemen.
Speaker Change: The conference over to the management for closing comments.
Speaker Change: Thanks, Thank you everyone and thank you for a detailed set of questions.
Speaker Change: We can imagine with the changes we are all looking for insights.
Speaker Change: <unk> from my side first we are delighted with our strong financial year 'twenty five gross margin very good cash large deals net new.
Speaker Change: What we see what we have built over the years as a balanced portfolio within the company with AI cloud digital for growth cost automation consolidation lean for efficiency and we find that this environment gives us.
Speaker Change: A good ability to work on both and maybe.
Speaker Change: One more than the other depending on how the environment will unfold, we will support our clients in that ability.
Speaker Change: We've also taken care to build a guidance with how James described with different ends and assuming different scenarios.
Speaker Change: We feel we are well positioned on the margin side with a lot of the work that's been done in a margin program. So overall we remain.
Speaker Change: Great.
Speaker Change: Confident to support our clients on what they want to drive and to deliver and execute on our business.
Speaker Change: Everyone and look forward to catching up in a quarter. Thank you.
Speaker Change: Thank you very much members of management, ladies and gentlemen on behalf of Infosys Limited that concludes today's conference call. Thank you all for joining US and you may now disconnect your lines. Thank you.
Speaker Change: Yes.