I have just one question. You mentioned in your opening remarks that the deal pipeline is now over a billion dollar. If you could just help us put this in context, how much has it increased by? What is typically the win ratio that we have? Our revenue on LTM basis is already close to a billion dollar. So, how do we look at this? And has our win ratio been improving over the last few quarters since the strategy refresh? And should we expect deal momentum or deal TCV to increase substantially going ahead?
Questions across 10 calls
Abhishek Kumar
JM Financial Limited
Firstsource Solutions Limited
HCL Technologies Limited
Hi, good evening, and good insight on our AI strategy and progress. I have one question on bookings. CVK, you mentioned that we are proactively cannibalizing the existing business and also in some of the SOWs that we have got renewal, the existing SOWs seem to have been offset through new scope, etc. Now, in that context, I just want to understand how relevant is the net new number? Because it is coming at the expense of renewals, so maybe some color on how has the overall deal bookings grow th has been? And if we can, going ahead, provide full TCV that would give us the full picture of renewal plus net new. That is the only question from myself.
Sure, maybe just quick follow up on this. So, net new has been around $2 billion for a couple of years. Now, compared to the past, where probably the deflation was not as much in renewal, should we look at slightly higher net new run rate to assume similar growth as we have seen in the past?
C.E. Info Systems Limited
I think good performance on margins. My question is on margin only. Map-led margins have gone up to 54%. Is this the new normal? Is this a sustainable level on for Map-led business?
Yes. Just wanted to check what was the margin guidance for FY '26, if you can just remind us?
Hi good morning. Thanks for taking my question. First question is on Hyundai Kia. Both, the India deal as well as the Indonesia JV, last quarter, we understand because of lower production, it is not reflecting. But how has that deal progressed? Have we now increased the number of models where our software is going in and how should we look at it in terms of achieving its peak quarterly run rate going forward? And, any color on the progress on the JV? When can we expect revenues or some profit coming from the JV?
Yes, that's very detailed and clear. One quick follow up there. Just in terms of size of the market, our understanding is that the volumes in Southeast Asia are similar to Indian market but the realizations are 2X-3X of what we get in India. Is that true? And does that mean that the TAM that we are looking at potential TAM is 3X of In India's automotive market?
KPIT Technologies Limited
First question is on TCV number. You guys mentioned in the mid -quarter update that a lot of your deal wins now are cannibalizing your own revenue. So in that context, how should we look at this USD 240 million number? Because this is a gross number from what I understand it might have cannibalized some of the revenues that you're already doing? So maybe 2-part question. One, if you can just tell us what would be the net number, ballpark? Or another way, do you think we need to win more to actually get the same effect as we would have got if we had won maybe USD 240 million maybe a year back?
And one quick last question from my side, especially on Japan. The growth in JPY currency seems like a sharp decline, I think, despite cross currency benefit. So while we understand this was a difficult quarter. But as we look ahead, do you think this was just a pause in the program with some of the OEMs there? Or there has been a strategic rethink, and therefore, we will have to wait and see how this stands out.
I feel that we have expanded sort of our playbook and correct me if I'm wrong, be it in terms of client base, we talked about 8 clients out of our T25 clients. In terms of offerings, we have spoken about semi -con at length, which we have not spoken earlier, and also in terms of some verticals...
Yes. Is this better?
PVR INOX Limited
My question is also on the FOCO model. Thanks for all the explanation. I'm still not able to figure out why is it attractive for a developer? I mean this is a business where you despite the scale and so much efficiency are making -- barely breaking even. And in that, if the developer has to give you 10% of the revenue, for him with little expertise and a little benefit of scale, how will he make money? Isn't it more beneficial for him to just take 15% as rent of revenue and leave the operations and the cost associated with it to you?
Okay. My question was more around whether if we have to choose between a FOCO model and the traditional model, I'm not very clear if the risk reward favors a developer given how the Bollywood and the exhibition business is performed?
Tech Mahindra Limited
My question is on deal wins, if I understand correctly, we disclosed net new deals. I j ust wanted to understand the trends on the renewal portion of the deals, are we seeing healthy renewals? Are there any asks from clients for productivity pass through pricing, etc.?
Next question is on margin j ourney, Rohit, I think when we started this transformation journey, we said that in the first year there will be $250 million of saving which is roughly 4% of the revenue offset by 1.5% of investment. In the 3 quarters since then, the margin has already expanded by almost 300 basis points. So, is it fair to say that we are probably little ahead of what we set out on at the beginning of this journey and does that increase or improve the line of sight or the 15% target that we have?
Mohit, my question is given your relationship and your leadership teams relationship opening new logos, while it’s the right step, probably the easier one given the competitive intensity in this sector. Two questions. One, how should we look at scaling these accounts given the competitive nature ? And second, what kind of contracts have we got? Are these broader MSAs that we have signed, or these are smaller SOW kind of work to start with.
One, maybe a related question on demand in BFSI. Some players are calling out some discretionary spend especially capital markets, etc., Have we seen any change in the customer behavior in BFSI?
Zee Entertainment Enterprises Limited
Good evening and thanks for taking my question. The f irst is a very high-level question, Punit. I just wanted to get your view on this linear TV versus digital from an ad budget allocation point of view. I mean the ad spend for linear TV has been soft for variety of reasons for almost 2-3 years now. The concern is it structural or is it just because of rural recovery et c? Do you think linear TV from a marketier perspective, still as relevant as it was a couple of years back and therefore, just as percentage of overall pie can go back to where it used to be?
Sure, a related question and more relevant for Zee Music. A lot of other players trying to monetize their content library by partnering with some of these digital platforms, Zee having such a large library of content both in cinema and music, do we have partner with some of the other music apps, platforms like we do with YouTube.