KPIT Technologies Limited CC-Dec23.pdf · 2024-01-30
I have a question around fixed price contracts. It seems very counterintuitive that for us, when we do a lot of development work. Our fixed price contract has been going up. So I just wanted to understand the kind of contracts that we are getting into -- does it involve an outcome-based pricing, and therefore, implies certain risks that we might be taking up in these contracts? How should we -- how do we explain higher FPP when we are doing a lot of development work?
Sure. My next question is on the deal tenure. Our understanding -- at least my understanding is that the programs in ER&D tend to be smaller or of smaller duration. So for us, how do we understand the TCV to kind of -- TCV and ACV growth? Is there a significant divergence? Or given these are maybe smaller tenure deals, TCV growth is also in line with -- ACV growth is also in line with TCV. Any colour around the duration.