Q4 2025 Wipro Ltd Earnings Call
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Rishi Jhunjhunwala, Rishi Jhunjhunwala
Speaker Change: Ladies and gentlemen, good day and welcome to Wipro Ltd Q4F525 earnings conference call. As a reminder, all participants' lines will be in the listen only more, and there will be an opportunity for you to ask questions after the presentation concludes.
Speaker Change: Should you need assistance during the conference call, please signal an operator by pressing star and zero on your touchtone phone. Please note that this conference has been recorded.
Speaker Change: I now hand the conference over to Mr. Deepak Bohra, Clark Crit Treasurer, and Head of Investor Relations. Thank you and over to you sir.
Speaker Change: Yeah, thank you, Ashwin, warm welcome to our Porto Force, Financially at 25 earnings call.
Speaker Change: We will begin the call with the business highlights and overview by Srinivas Pallia, our chief executive officer and managing director, followed by updates of financial overview by our CFO operta Iyer, we also have our CHR and Saurabh Govil of this call.
Speaker Change: Before bringing starts, let me draw your kind attention to the fact that during the call we may make certain forward looking statements within the meaning of private security litigation reform act 1995.
Speaker Change: These dates are based on management current expectations and are associated with uncertainties and risks which may cause the actual results to differ materially from those expected.
Speaker Change: The all certainities and respect rights played in our detailed filing with the SEC.
Speaker Change: Dipro Ltd does not undertake any obligation to update the forward-looking statements to reflect events and circumstances after the date of filing.
Srini: The conference call will be archived and the transcript will be available on our website. With that I would like to turn over the call to Srinivas Palli.
Thanks, Deepak.
Hello everyone, thank you for joining us today.
Srini: It's hard to believe that it's already been a year since I took over.
I see you.
When I look back at each 12 month,
I can speak clear progress across many areas.
We want to make our deal this year.
Srini: It is a strong sign that a large steel engine is working and continue to expand.
Srini: Our clients have responded well to a consulting late AI-powered industry and cross-industrial
Srini: This is reflected in the strong growth in top accounts and large fields of kings [inaudible]
in a five-twenty-five
We have continued investment of people.
Killing Them, For The New E.I. Day . . .
are execution rigors with speed.
has been acknowledged by clients.
Srini: And that's reflected in the clear improvement in our client satisfaction course.
Srini: and we are done all of this while strengthening our margins.
That's on going to...
Srini: The Global Industry Environment remained uncertain for most of the year.
and the recent tariff announcements I have only added to that.
I have been thinking to plan a cross-picture, [inaudible]
to understand how things are playing out on the ground.
Even though the underlying demand for tech, re-invention remains strong.
Clienter approaching it is more cautiously.
Srini: In fact, they are focused on cost, speed and AILA deficiently.
And that's exactly...
Where we are leading in.
Srini: We see this as an opportunity to move its purpose, make more bets.
and take committed to our five strategic priorities.
Driving consistent, profitable growth remains a clear priority for us.
and we are focused on making that happen.
Thank you.
Let's look at our Q4 and F5 2024-25 performance.
Srini: All the group numbers I share will be in constant currency.
Our IT services revenue for quarter 4 was $2.6 billion.
Reflecting a sequential decline of 0.8%
on a year of near basis.
The order looking for Kaurafo was that dollar 4.0 billion because it is a growth of
13.4% sequentially
and 10.5% on year-on-year basis.
Aroperative Magist, [inaudible]
came in at 17.5%.
which is flat sequentially.
and 110 basis point expansion on year-on-year basis.
For the full year,
Srini: I.T. Services Revenue, US$10.51 Billion, Reflecting Year-On-Year Degrowth of 2.3%
Our operating margin was at 17.1% [inaudible]
An expansion of almost 1% as compared to FI-24.
Now to our Karajik Market Unit Performance.
America's one group, 0.2% sequentially?
and 6% on a year-on-year basis.
Americas to de-grow 1% sequentially
and 1.8% on a year-on-year basis.
Europe , Degrood 2.5% sequentially, [inaudible]
and 6.9% on a year-on-year basis. Saurabh Govil, Saurabh Govil,
Srini: Armiya Grue, 1% sequentially, and Durdi Grue, 4.9% on a year-on-year basis.
We will move on to our industry sector performance, [inaudible]
BFSI Degree, 0.5% sequentially, and group 0.8% year on year.
Healthcare D Group 3.1% Sequential Ink
and crew 0.1% year-on-year.
Consumer decrease 1.3% sequentially
and Vaflat Ironio.
Technology and Communication
D-group, 0.9% sequentially. [inaudible]
and 1.1% year on year.
Energy, Manufacturing, and Retosis Group,
1.1% sequentially and D-group 7% year-on-year. [inaudible]
Kefko continues to perform well during 6.5% sequentially. Saurabh, Saurabh, Rishi Jhunjhunwala, Rishi Jhunjhunwala,
and 11.5% on year-on-year basis.
Srini: Let me know, provide an update on our five strategic priorities [inaudible]
Srini: As I mentioned earlier, we are continuing to see strong momentum in large fields.
Srini: In Kodafo, it closed 17 large fields with a total value of $1.8 billion across market and
For the full year, Nick Klosk, [inaudible]
Explicitly loved him.
for a total value of $5.4 billion.
which is a year-on-year growth of 17.5 percent. [inaudible]
Now let me highlight two recent things.
A Global Technology Leader, [inaudible]
We will deliver AI-powered end-to-end IT services.
, completely reshaping the employee experience.
for 200,000 uses across 200 countries.
A position involved, proactive support, [inaudible]
Intelligence, Tulsa Zil, [inaudible]
and Postalized Digital Interactions.
My second example is our recent partnership.
with a leading Global Food Distributor, [inaudible]
We are taking over their entire IT infrastructure and... [inaudible]
which includes HR, Finance and Legal Systems.
We are diveraging E.I. solution.
and we will drive automation.
and Biglify News Air Interaction.
For our clients, this will result in higher efficiency.
Global Corts
and better user experience.
At Yon No,
Yes, has been part of Steel Conversations for a while.
Participate.
It's become central to almost every opportunity.
Big or small?
Helping Drive Productivity and Efficiency [inaudible]
Srini: This reflects a broader shift we are seeing across the board.
Next, we now move on to Rajakounts.
Srini: We continue to focus on our large accounts in our core markets and priority sectors.
Srini: In Kodafo, Top 5 and Top 10 Accounts Group, 0.3% and 1.1% respectively on a sequential basis.
Srini: Let me also share an example that shows our momentum in strategic accounts.
in Quarter 4.
A leading Indian private bank expanded
for Strategic Partnership,
as part of a business focused digital transformation.
Even for like the bank,
AI Board of Solutions
Sustrenten, Compliance Management, [inaudible]
and Aggressive Critical Need for Regulatory Compliance.
In addition to enhancing the overall experience for the bank.
Now this will also help...
The time boosts to operational efficiency.
and realized its growth ambition across various functions.
Srini: We continue to create impact for clients who are consulting, led AI for work industry and cross industry solutions.
This is Srinivas Pallia signing off.
The strategic priority is net fold-out.
Srini: In this context, let me talk about a recent win in the aviation sector.
Srini: Pathvik Airlines shows us to modernize its crew management and operation systems in Kodafor.
Srini: In fact, we were selected for our proven ability to future-proof Client IT platform with the AI.
Srini: We will deploy our own top platform to manage into end-to-end crew operations.
Srini: , providing a unified, scalable solution that enhances experience and drives sustained operational
Alongside all of this.
We have put Ivankov Fukke and Klein Center for D.
and starting to show results.
Our latest third party annual customer satisfaction survey.
Improvement in overall satisfaction scores and NBS.
In fact, I would like to thank…
Our team has made this possible.
Srini: As you are aware, we have also re-aligned for global business lines, effective April 1st.
Srini: The case is now closed. The court is adjourned. The case is adjourned.
The change will help us deliver stronger business outcomes.
Finally, and just as important!
Srini: Supporting and growing our global talent has been a top priority all year.
Srini: You might remember that last quarter, I spoke about our focus on leadership development.
and hope we are building future radiators.
through our Dipro leadership interview.
Srini: In fact, we have moved our top performers into key client-facing roles to ensure continuity and stability.
Now we note on Kaitan before I wrap up.
Given the uncertainty in the environment,
Srini: We expect clients to take more measured approach going forward.
Specially on large transformation programs, [inaudible]
and discretionary spending.
With this in mind, and based on our current visibility, [inaudible]
VR Dating for a Sequential, [inaudible]
in constant currency terms.
Srini: Let me now turn it over to Perna for a detailed overview of our financials.
Thank you, upon all due.
Speaker Change: Thank you Shri Me, Gurilin, and Good Morning Everybody. Let me share a quick update on our financial performance for the quarter-ended 31st March 2025 before we move.
Speaker Change: on to the, and after that we'll take questions. Our IT service is revenue for Q4 sequentially declined by 0.8% in the constant currency terms. This is within our guidance guided range.
Speaker Change: for FI-25, RIT services revenue declined by 2.3% in constant currency terms.
Speaker Change: Our regular focus on operation improvement has ensured that the margins has steadily improved though the last few quarters. A few four operating margins at 17.5% expanded by 1.1% year-on-year.
Just brings us a site 25 operating margin expansion to 0.9%
Speaker Change: As we enter, if I 26, we are faced with headwinds and account of an uncertain macroeconomic environment that is putting a downward pressure on our revenue.
Speaker Change: Arindeva, would be to maintain these margins in a narrow band in the coming quarters.
Speaker Change: Our net income grew 6% quarter on quarter into 4th and 19% for the full year. Our EPS for the full year was at 12.6, a growth of 20% year on year.
Speaker Change: We finish the financial year with a free cash flow as a percentage of net income at 118% which takes a gross cash, including investment to $6.4 billion.
Speaker Change: in Q4, our other income group by 45% sequentially and our accounting yield for the average investment.
Speaker Change: Health in India was at 7.9%, RETR was at 24.3% for Q4-25, again 26% in Q4-24.
I can just continue to be in line with our policy.
Speaker Change: We had about 2.4 billion of forest derivative contracts as hedges at the end of Q425.
and Srinivas Pallia.
Speaker Change: This translate through a sequential guidance of negative three and a half percent to negative one and a half percent in constant currency done.
Speaker Change: But that I turned the over back to the operator for questions.
Thank you very much.
Speaker Change: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.
Speaker Change: Ladies and gentlemen, we will wait for a moment while the question queue assembles.
Speaker Change: We'll take a first question from the line of Nitin Padmanabhan from Investek. Please go ahead.
Srinivas Pallia: Srinivas Pallia, Aparna Iyer, Srinivas Pallia, Srinivas Pallia, Srinivas Pallia, Srinivas
Nitin Padmanabhan: Thank you for the opportunity. She just wanted your thoughts on which verticals are the highest impact at this point in time.
Please be seated now.
Sorry Nithin, I was picking on mute [inaudible]
Similarly, we are also seeing a top sector directly or indirectly. [inaudible]
These impacts.
Manifaxing, Wipro Ltd. Manifaxing, Wipro Ltd. Automotive and Industrial.
Nitin Padmanabhan: and we are thinking directly back on most of the sectors if you will.
What do you think?
Speaker Change: at this point in time. And they are also doing a scenario planning because they would like to see when this whole thing was settled down before they start making more business decisions.
Speaker Change: So how are you seeing the effect I brought you in the currently in terms of how we are thinking about things mostly Western Europe ?
Speaker Change: So, if you look at our results, we have been doing good traction in the FSI, specifically the U.S. finding the atmosphere.
Speaker Change: and also our Capco business, both in terms of revenue and order book.
Speaker Change: I think what we placed is a head rinse in Europe in the BFSI sector.
Speaker Change: But again you know the good news is that we have a good pipeline and there is deal momentum.
Speaker Change: Now, there are obviously to look at the kind of deals that we are getting. One, we are definitely looking at apps for 19 for section modernization.
Speaker Change: They are opportunities around BPS, which is business process services and cyber security. And we are also looking at opportunities and consulting, which is a reflection of our capital business.
Also, some of our...
Speaker Change: Solution, there is a certain wealth management, I think this is a good time, the customers are relooking at how they can leverage, you have forward solution.
Speaker Change: We want to prioritize how Wipro and Capco can come together, bring in more synergies with Capco being the tip of the spear and then how Wipro actually executing into end. And I think this is also helping us as we move forward, specifically on the basis of sector.
Speaker Change: The two perspectives within one is like a set, the pipeline is strong.
and Srinivas Pallia.
and Srinivas Pallia.
Speaker Change: Sure perfect, this is very helpful, I will get back in the case, thanks a ton.
Thank you.
Speaker Change: We'll take our next question from the line of Abhishek Kumar from J.M. Financial. Please go.
Go ahead.
I have a good evening. Thanks for taking my question.
No, about 1.2 times.
Aparna Iyer: , but it has not really translated into Reddini Road. And if we add to that, you know, better performance in Kabul, where the fundraising would be even better.
Speaker Change: Looks like the conversion is quite soft, so I just wanted to understand what exactly has driven this.
and Srinivas Pallia.
and Srinivas Pallia.
Speaker Change: So, Abhishek, as you know, the bookings, it's very difficult to correlate them within a really couple of hours, because the timing has decreased from these two days.
Ram, for example, the large key is that he is...
the cure in Q4 that we announced.
and Srinivas Pallia.
and Srinivas Pallia.
Speaker Change: So, we need to win more, we need to fill that bucket a lot more for it to start reflecting
and Srinivas Pallia.
Thank you.
Speaker Change: Abhishek, let me give you some kind of commentary on what we saw.
Speaker Change: If you look at it, it starts at the bottom floor on a positive note.
But gradually during the quarter the sentiments turned negative. I think this is because of
on this.
Nitin Padmanabhan: Now, to me, this has definitely impacted our revenue growth momentum across sectors and markets.
Nitin Padmanabhan: One example I can tell you is we were doing a large SAP program which was very critical for the client.
and Srinivas Pallia.
Nitin Padmanabhan: So, that's one good example I can give, where the program has been put on hold
Nitin Padmanabhan: Also in Euro, some of the clients have slowed down transformation projects, it's not that they have paused it but they say they know we can relook at the timeline at this point in time.
Also,
Nitin Padmanabhan: We did see a similar instances of volume drop in some of our existing accounts and maybe because some of them are because of the delayed initiating the project and some also there was an impact
and Srinivas Pallia.
Nitin Padmanabhan: I think as an organization what we are doing is we are working with the clients and you know understanding the scenario planning and trying to actually give it to the way you know they are looking at how the business is coming next.
Aparna Iyer, Srinivas Pallia
Reddappa Gundluru, thank you and all the best.
Speaker Change: Thanks for the opportunity, Shri Rishi which wanted to take your brains on to the thing, from number one, if you continue to see pressure in Europe through the course of national quarters.
Speaker Change: Similarly, on a segmental margin standpoint as well, while Capco has recovered, we have seen no improvement in terms of the segmental margins for the European level. If you could talk about what's dragging the margins here. Thank you.
Speaker Change: Share, I think the Europe question maybe I'll leave the margin situation to Aparna, Manik.
So,
Speaker Change: Let me talk about this. I think your observation is right. We'll cut our revenues for last year. On a
and it is the..
and Srinivas Pallia.
Speaker Change: Now the situation at Europe we have a new leadership team, [inaudible]
Second, we have a very strong pipeline of these.
Speaker Change: Three, we just won a large team, Phoenix team which are aware of, and that deal will start kicking off in few months from now as per the contract term.
Shabbat Shalom.
Anu Chenyar, Deepakya question on Majin?
So, for my question, this was like...
Srinivas Pallia: and during second half of the episode, we will be starting to take some pressure which I have to go.
Speaker Change: We blame some of the margin that we saw in the opening of the movie, we were actually able to drag some catfish.
Speaker Change: but there has been no recovery in sedimentary margins towards Europe.
Speaker Change: So, if you could really do what's going back, and the next one if I may just clarify, on the
Speaker Change: You know, your question is not very clear. I think the question that you asked about Majin's work that Kathko Meha has been a drag on Europe Majin, and therefore, how they are responding? In some sense, I think Kathko has been doing well from the standpoint of its growth and bookings, and there has been a list of the Majin's as well. Overall, they are doing much better even from an operating Majin's performance, at least in case for that time.
and Srinivas Pallia.
Speaker Change: Sure, and then any sense on when do we start to see some of these special details?
Speaker Change: In Europe , you will know that we have actually won a very large game and that should start ramping up.
to the course of the year.
Speaker Change: and especially towards the second half and therefore you will see a bounce back then.
Speaker Change: and we also have a solid pipeline that we think we can close between now and September and that should also be added.
Shun.
Saurabh Govil, Saurabh Govil, Saurabh Govil,
Shka Sevan Singh, question.
Thank you, I will be back with you. Thank you. We will take our next question from the line of reports.
and Srinivas Pallia, thank you.
Yeah, hi, thanks for giving my question.
Speaker Change: So two questions from my side. Shini, on the overall macro weakness that you have spoken about.
Speaker Change: So can you give a bit of color as to, I'm sorry I was looking at it for a part and that's all.
Speaker Change: But for the highlight that was some part of the statements also responsible for that slide, we know a word that be reported in this topic and given that we are exiting the effect of the files on a negative comment on this line and we will be entering effect of this also on a negative mode.
and Srinivas Pallia.
Speaker Change: I am sorry to interrupt sir, you are on mute more I believe.
Speaker Change: Rishi Jhunjhunwala, Rishi Jhunjhunwala,
Speaker Change: Saurasi, Vibhor Patan, Formos Kaji, we don't give a full year guidance.
Speaker Change: Having said that, the recent development, especially the macroeconomic situation, the tariff situation,
Speaker Change: We are, like I said, keeping a very close watch on how the situation is evolving and how our clients are responding to that or reacting to that.
Aparna Iyer, Srinivas Pallia
Aparna Iyer, Srinivas Pallia
and Srinivas Pallia.
Speaker Change: So, yeah, you know, Vibhor if you look at the last few weeks, right? And you've seen the economic environment, you've seen many of the analysts and you know how they've been focusing from January to February to March.
Speaker Change: There is a drastic change in terms of how the industry has been looked at, right? And you know, to me, this impact of tariffs obviously is not just US, but also Euro, right? And again, it's not just in few sectors, but across sectors.
Speaker Change: The only difference is certain sectors are seeing direct impact, certain sectors are seen indirect
and Srinivas Pallia.
and Srinivas Pallia.
Speaker Change: Srinivas Pallia, Aparna Iyer, Srinivas Pallia, Srinivas Pallia, Srinivas Pallia, Srinivas
Speaker Change: So, thank you so much, Saurabh, for your patience, I just want to look for Aparna. Saurabh, Aparna Iyer, I think Ma'jeev, Saurabh is going to be here for the next year and going for the next year. You mentioned that we are going to see Ma'jeev, Saurabh, Aparna, Rishi Jhunjhunwala.
Speaker Change: In terms of the disease, the growth not being strong in a 5.26, even the kind of disease that you are seeing on a macro day. Do you see Abhishek Kumar, in terms of current illness, Parallel Ramya?
Speaker Change: Converse me, if both were to return, especially with the situation in the second half, we would actually have the thing between us.
Can you repeat the question and use your hands at my feet?
and Srinivas Pallia.
Yes, please go ahead.
Speaker Change: I am Saurabh for that. So, but I am just a question on the margins. So, as you mentioned the margins, some remain in a very narrow range of from time to time. So, just wanted to take it, this is a growth in a cycle that makes it weak and it is also a decline trend. Then, do you think the margins could be in the pleasure because of that as well? Conversely, if this issue is, what to pick up? Let's
Speaker Change: What that means that we could basically have a good jump up in the mountains and possibly some
Speaker Change: Rishi Jhunjhunwala, Rishi Jhunjhunwala,
and Srinivas Pallia.
Speaker Change: There are two events, one course of a week, revenue environment, two that of a lot of deals that we have spoken about here, a part of our pipeline are actually cost checkout and vendor consolidation deals which
Speaker Change: He inherently come with surprising pressure and also very competitively fought.
So, we will...
Speaker Change: Prioritize growth, we will prioritize the fact that we would like to invest in our climate.
Thank you.
The Headband,
Speaker Change: And like I said, our interval would be to keep the margins in an arrow band.
Speaker Change: It is a huge talk given the kind of guidance we have given for Q1.
Speaker Change: But all hands on the face, what can be the levers? The levers will go back to everything that we have done
Thank you.
and Srinivas Pallia.
in a journey so far, we will only have to accelerate it.
Speaker Change: And you know, we don't guide for margin. So, there is never going to be to keep it at least in Narobhan and coming quarters and then from there we will see.
Speaker Change: Thank you so much for taking my question and wish you all the best.
Thank you, thank you.
Speaker Change: We'll take our next question from the line of Kumar Rakesh from BNP Paripa.
Please go ahead.
Hi, Greening, thank you for taking my question.
Speaker Change: Your total bookings and large dealings are pretty strong in the quarter and Capco, which is quite
Speaker Change: I would have expected that the next whatever would see a decent growth in contrast to that the guidance that you have given at the make point implies that you would see one of the least growth and outside of COVID period probably.
Speaker Change: So, what is incrementally that you are looking at, which is getting you this, which is essentially making out against to be that the cardia specific round-downs that you are looking at, you have volume declines that you are building into that assumption, if you can get some four sedanular details essentially, what specificly is going down this cardia?
and Srinivas Pallia.
Aparna Iyer: Srinivas Pallia, Aparna Iyer, Srinivas Pallia, Aparna Iyer, Srinivas Pallia, Srinivas Pallia,
You know, when...
and Srinivas Pallia.
Speaker Change: and hopefully you know from there we look at how to build on the momentum on the back of some of this large deal wins that we've had both in Q4 and in Q1 blockage.
So, that is it, maybe five psychodag, few more points here [inaudible]
and Srinivas Pallia.
Speaker Change: Second, while the clients have the budgets, they want to review it, both the certainty or at least understand where the situation will end up [inaudible]
And one of the things that I constantly see especially in the industry that have direct influence
And, you know, definitely, I think, you know, the demand for tech driven.
Speaker Change: No, Efficiency and cost will continue and that's the kind of pipeline that we are seeing which is also how do you help the clients bring in more efficiency automation and of course
Aparna Iyer: and the point that Aparna made in the previous question is around when the consolidation
Aparna Iyer: But the point is that the good news is that, you know, right now the Bhai San is strong.
I think that's good news.
and Srinivas Pallia.
and Srinivas Pallia.
and Srinivas Pallia.
Thank you.
Nitin Padmanabhan: All these guys would have to go now, Ashwin. My second question was if I step back and take a little longer term view on the full-year performance and variation history. So, this is the second year in which we have seen the revenue decline.
Aparna Iyer: and looking at this, he would be exiting this year, the first quarter, even if for the rest of the year you grow, you look at most like you will see out of a new decline in the 526 as well.
Speaker Change: So, while I am aware of the five priority areas, the five focus areas that you are working on and we have started seeing progress on those areas, what do you think is the problem that, that essentially is aiming that we have consistently under performing and likely to continue to under perform for the next two quarters?
Speaker Change: So I think it's a good question. I can tell you that it was obviously fault as the fact that if I wasn't mixed here [inaudible]
and we also made our progress on few frags. [inaudible]
Speaker Change: But if you double click on the revenues while we have grown 2.25% in FI-25, I'll definitely call out America's which contributes close to 63% of our revenue, that piece of the business has grown 1.2% in FI-25.
Speaker Change: The second piece of the business, which is Aapmiya, it is actually Degree 9%, but the region has recovered in the second half of the year, and you know, delivered a growth of 1% in
Speaker Change: Well, Europe like Koldag has been a challenge for us. It has de-groved 7% year-on-year and 2.5%
Speaker Change: Our focus has been to stabilize and bring this region back to growth trajectory.
and Srinivas Pallia.
Speaker Change: And what is the important thing that I want to call out is our deal pipeline in Euro.
and Srinivas Pallia.
Great, thank you, Lord, for that.
Thank you.
Speaker Change: We'll take our next question from the line of Gaurav Rateria from Morgan Stanley . Please go ahead.
Thank you.
Gaurav Ratheria: Thank you for taking my question. I have a couple of them. Just first question for Shrinivas, exactly a guidance assumes with respect to normalization of the environment, isn't it? That the environment remains tough throughout the quarter is what you assumption is or you expect that to normalize over the coming weeks and some of that reflects in improving growth over the coming months may not be a start of the quarter but back half of the quarter. Thank you very much.
Ahu, may you be Bodhi.
Gaurav Ratheria: I am talking to someone who is on a daily basis looking at what is happening in the macro environment. Maybe I should ask you offline with particular questions, but clearly in the context of the guidance we are given for quarter one, right? We have factored in attention for the both in the lower end and upper end of the guidance.
and Srinivas Pallia.
Srinivas Pallia: So, the lower end of the guidance will obviously have to factor in a worsening of their demand environment. So, we have a bit between that and that will happen.
Speaker Change: I go to the crystal ball to say when this false uncertainty will come become certain.
Aparna Iyer, Srinivas Pallia
The Unlead Coming Back.
and Srinivas Pallia.
Aparna Iyer: Hoping for the test case scenario, which will impact on Hiran of the guidance, Hoskis scenario, which will be at the lower end of the guidance. That's the best way I can answer your question
Aparna Iyer: Shasri, thank you so much for our transparency and explanation. My second question is on the PCV that you report, the govtcv-nur.
Speaker Change: If you look at that number training 12 months, it's down by around, you know, in like 34% Y, Y, Y. Is this the reason why the conversion of? [inaudible]
Thank you.
Speaker Change: and Correlate that this part of the business is driving a weaker convoyant ratio.
Srinivas Pallia: Rishi Jhunjhunwala, Rishi Jhunjhunwala, Rishi Jhunjhunwala,
You know, uh...
Srinivas Pallia: Yusuf Rukara, overall bookings, you know, the shows of Surya, but 14.3 billion dollars of bookings, and in some sense, you know, that is, there is a down year on year.
and Srinivas Pallia.
Thank you.
Srinivas Pallia: Say, Navadeh, that has very correlation that, you know, these other deals say, longer to convert, these are very small deals.
Srinivas Pallia: Adi, we will come into the conversion much faster. You know, it's just, it's just conjecture, I don't think there is a analysis or there is a causal effect to that extent.
Srinivas Pallia: But yes, that also starts to grow, it will have impact on our overall having growth.
and Srinivas Pallia.
to hold on to margins in a narrow bracket.
Thank you.
and Srinivas Pallia.
and utilization is one of them.
Srinivas Pallia: Srinivas Pallia, Aparna Iyer, Srinivas Pallia, Srinivas Pallia, Srinivas Pallia, Srinivas
Srinivas Pallia: Adho Kogran, that is driving from a standpoint of how we are looking at profitability. So there are many levers at least, the utilization being one of them, Gaurav.
Thank you so much.
Thank you.
Speaker Change: We'll take a next question from the line of Surah Indra Govil from City. Please go ahead.
Speaker Change: Srinivas Pallia, Aparna Iyer, Srinivas Pallia, Aparna Iyer, Srinivas Pallia, Aparna Iyer,
Speaker Change: So, do you think anything needs to be done differently here or do you think you are doing enough, investing enough for this to be able to drive the catch of with peers on growth rates? Thank you.
Speaker Change: I think Selinger, you know, look at our SNN even you're on your, I think that's a good restriction, quarter on quarter they could be certain noises that could impact.
Speaker Change: And I must tell you that from an employee, compensation standpoint, you know, there is no change in this name.
Right, that a lot of what you are doing is rationalization of maybe more G&E kind of.
Speaker Change: and there again we are looking only at those roles that are by design, need to operate from India and therefore they are not client facing and in high cost geographies we have come down. You can be ready to share that we are not cutting down on epinem.
Thank you.
Speaker Change: Should be your one hand? Yeah, sure sir. So just to add, to enter to what Aparna said, was seen for most.
Right? We continue to invest.
Speaker Change: and sales and marketing and the strategic areas that we talked about but that's consulting but that's AI forward investments around innovation and so on and so forth. So we are not, we are investing for growth so I want to be very clear on that aspect of it.
We have created a design tool.
Where, if the rules are not plain facing? [inaudible]
done from home.
Speaker Change: It doesn't make a necessary sense for them to be sitting there, so we are moving such roles to low cost either it could be Europe , Latin America or India, depending on where it is coming from.
Speaker Change: So that's what would have reflected, but let me be very clear, if we have to be consulting late E.I. pod with pro for the industry, bigments, where we are going to prioritize on, we're going to go full throttle on growth in those bigments.
and investment for India.
Speaker Change: Understand, so you think you are doing enough, so I get the point, thank you.
Thank you.
Speaker Change: We'll take our next question from the line of Ankur Rudra from J.P. Morgan. Please go ahead.
Ankur Rudra: Thank you, and thanks for the ideas as well. Elaborate, bit on the extent of the Ramdhown's cancellation delays you mentioned, that has happened only in the last two weeks is the tariffs came out, how much of this is fresh? And is that what you're building into both ends of your ideas, sir?
Ankur Rudra: How guidance digs in the current visibility that we have on core at the moment? It certainly reflects the macroeconomic environment and the visibility that we have in terms of.
Ankur Rudra: and other friends that are planning to make it up. So, in some sense, the factors like she needs the job.
No, one for Affinity, that's them.
and Ashwin O'Reguide in a range.
Also Ankur, Ankur from you for 16th.
Speaker Change: I think after the pause for 90 days on the tariff, [inaudible]
I think there's a little bit of, you know...
and Srinivas Pallia.
Speaker Change: But we don't know what we don't know at this point in time, how this will play out, especially with China on the tariff side.
So, it's a little difficult to predict.
Speaker Change: But, again, just to repeat what I said and again, what upon that said, right? Based on the best visibility in terms of revenues that we have, we have given the upper end of the guidance, assuming the demand situation, from where it is today, we will stabilise the need to and the lower end effect,
Speaker Change: Okay, understood. Just talking a bit about AI, can we talk a bit about how AI related the productivity passbacks or deflation might be playing into your contract rules? And, you know, if you are coactively infusing AI gains into your existing needs, is that both existing PCV numbers at risk?
So, at this point in time, [inaudible]
Nitin Padmanabhan: Ankur, you know, I am not seeing any significant impact either on revenues on market.
Right, what we are doing is, what are the benefits of DNA eye? [inaudible]
Adala aplikable to our customer, in many of the cases, you know.
will talk to you for further information.
But what is important to call out is, [inaudible]
Nitin Padmanabhan: While we continue to introduce Jainai into managed services and also managed services opportunities that currently exist with our existing clients, we are also trying to leverage Jainai to actually look at a completely new revenue stream.
and Srinivas Pallia.
Speaker Change: And, you know, I can just, for example, we just announced a partnership with Nvidia on Saurini AI, right? We did this collaborating with them and we announced CM.AI in our Thailand.
And this is...
something, you know, which is, you know, very new.
Speaker Change: which has a huge impact on tourism industry starting with Thailand.
And you know it could get replicated across the country.
Speaker Change: So, that's one good example I can talk about. Another example, Ankur, just liberating Jainai, one of the last cities in Europe , we are actually doing as part of the motor city,
Right, you know, that's very interesting, very high end kind of work, interactive, we got this.
, Benefits of the city is driven to maintenance of the water pipelines for example, [inaudible]
and Srinivas Pallia.
Thank you.
Speaker Change: Yeah, if I can just squeeze in one last question, you have mentioned successfully in your large accounts if I look at the client metrics from the last several quarters and especially this quarter, it's across sizes whether it's $100 million down to $10 million has been an element of softness.
Speaker Change: Yeah, you know, if you look at the number of 15 million dollar clients that we have, they broadly remain the same. We've said, we've mentioned that our top clients are top five, our top 10, they're all growing.
Speaker Change: In fact, even in Q4 of 25 on a year on your currency basis, all three subgroups.
You know, the-
Speaker Change: The number of clients, active clients that you are seeing going down is just a reflection of the overall revenue environment and the lower depreciation.
Thank you.
Rishi Jhunjhunwala, Rishi Jhunjhunwala,
Thank you.
Speaker Change: Ladies and gentlemen, that was the last question for today. I would now like to hand-con back to Mr. Deepak Bohra for closing comments. Over to you, sir.
I am sorry sir, you are not audible.
Speaker Change: Thank you all for joining the call. In case we could not take any questions to do time constraints.
Speaker Change: He is in free to reach out to Investrelations Team, have a nice evening. Thank you so much.
Thank you, Members of the Management Team.