Stockrabit · Analysts
Questions across 68 calls

Manik Taneja

Axis Capital

HCL Technologies Limited

HCL Technologies Limited CC-Sep24.pdf · 2024-10-14
I had a related question to what was asked earlier, and I am just trying to reconcile the absolute decline in SG&A and the SG&A reduction in SG&A itself as percentage of revenue as well as the modest hiring with regards to the qualitative commentary that you've spoken about in terms of seeing improvement. So, how s hould we be thinking about SG&A going forward? And also, with regards to wage hikes, Shiv mentioned that the wage hikes will be similar to last year. The average hikes that were given last year appear to be probably between 3% to 4% as per the published annual report for the year. So, should we be thinking about that kind of impact for this year as well?
So, should we be essentially seeing an improvement in terms of hiring on a go -forward basis as you were speaking about a better demand backdrop?

Tata Elxsi Limited

Tata Elxsi Limited CC-Sep24.pdf · 2024-10-10
Hi, thank you for the opportunity. I actually wanted your inputs on a couple of things. Number one thing is we see headcount come off in the current quarter. If I recall correctly, last quarter while you've been talking about budget investments from a headcount standpoint this year, you have been talking about hiring pressures in the current quarter, and thereby expect the head count to go up. If you could talk about the plan on that front? And also, with regards to JLR, if I see your Annual Report, the approval that one has taken in terms of labour party transaction limit that suggests that JLR will essentially grow in excess of 50% this year. Are we on track with some of the challenges that you spoke about in case of JLR in the near term? And also, how should we be thinking about the ramp up on the auto OEM deals given the way head count actually has been trending?
Sir, my question was with regards to how should be thinking about the growth trajectory given the headcount has been coming off in the last couple of quarters? And the last question from my end. You had spoken about FY '25 and how you expected to have better growth year than FY '24. Clarification on that is, are we looking at this from a constant currency growth, rupee number or a dollar number ? B ecause if I do some math , the ask rate for second half is extremely high to be on constant currency?
Tata Elxsi Limited CC-Mar24.pdf · 2024-04-23
Manoj, I basically just wanted to get your thoughts on two, three aspects. Number one thing was that we've seen some of your traditional IT service companies acquire ER&D companies with deep customer relationships in some of the large OEMs. So how do you think that, coupled with the fact that, as customer spending moves towards middleware aspect, how do those two aspects impact competition for pure -play ER&D companies like us? That's question number one. The second question was with regards to just understanding your prospects in terms of FY '25 in terms of growth across different industry segments, like this year, growth was led by automotive in a very significant manner, while we had some challenges on the media side, while Healthcare started to pick up towards the later part of the year. So how should we be thinking about the growth dynamics across the three industry segments going into FY '25?
If I can prod you on one more question. So you mentioned that we certainly expect FY '25 to be better for potentially bottoming out of Media and Communications vertical and while Transportation is expected to do well, given some of these ramp -up challenges on the Transportation side in near term, should one probably be expecting this growth improvement to be more back-ended with possibly near term being as subdued as what we've seen in the more recent past?

Firstsource Solutions Limited

Firstsource Solutions Limited CC-Jun24.pdf · 2024-07-30
I just wanted to pick your brains with regards to the revision in terms of guidance given the qualitative commentary that you shared, the deal wins that you’ve spoken about as well as the likely trajectory across industry segments, the implied growth arithmetic for the next three quarters appears to be quite conservative. Just trying to understand what exactly is driving that? The second question was with regards to the metrics or the improvement in terms of offshore revenue mix. While I understand there is an element of the acquisition consolidation as well, but would be great to simply get your sense in terms of how should on e be seeing this metric move over the course of foreseeable future as well as the likely tailwind that’s emerging because of this phenomenon?
How should one be thinking about the margin profile for offshore delivery of our business compared to the typical onshore or nearshore delivery, that will be great to get your inputs on that?
Firstsource Solutions Limited CC-Mar24.pdf · 2024-05-03
Ritesh, I just wanted to get your thoughts on a couple of things. One is that you have been talking about new client deals being significantly higher than what we have seen in the past. If you could dwell a little deeper into it, is this basically driven by clients need for optimization or a function of our proactive pursuits, that’s question number one. The second question was with regards to the increase in the offshore delivery mix that we are seeing for you as well as for industry. If you could give us some broad sense as to how should we be thinking about the profitability metrics between the local and onshore delivery that we have been accustomed to in the past versus offshore delivery mix and how should we be thinking about this mix probably over a three-to-five-year period.
Sure. Basically, when one thinks about the CX opportunity over there, over the course of last 12, 18 months, you have seen consolidation amongst the bigger players, is that driving some sort of growth opportunity for midsize players like us, given the client vendor concentration risk that customers may see with some of the large CX players, that’s question number one. And the second related question was, in our case we have historically had limited presence in Philippines. Do we see this dynamic change over the course of the next few years?
Firstsource Solutions Limited CC-Dec23.pdf · 2024-02-07
I just wanted to pick your thoughts on a couple of things. Some of your peers as well as you have spoken about softer volumes compared to the initial client volume estimates that customers typically tend to provide through the course of calendar year 2023. Are you still seeing that play out or there is some amount of stability on that front? That's question number one. The second question that I have is that some of your peers have spoken about insourcing that they have seen in a couple of instances. Are you seeing any signs or discussions around this front at any of your clients? The third question was a clarification question. We have seen several leadership reinforcements over recent months, where are we in that journey now? Would be great to get your thoughts on that.
If I can pick your thoughts on one more question. You spoke about both an interest and push from our end to since rely we drive more offshore delivery across som e parts of our vertical service offerings. What is driving that because historically the kind of work that we used to do in certain segments say for example on the provider side those used to be typically on shore delivery because of compliance or because of regulatory r easons. So, is there something else that we are trying to sell now on both healthcare as well as possibly on the collection side?

Zensar Technologies Limited

Zensar Technologies Limited CC-Jun24.pdf · 2024-07-23
Manish, just wanted to understand this comment around furloughs in the High-Tech vertical. If you could elaborate in terms of what's driving this. I presume this is largely true within the top customer. And how should we be thinking about our earlier thought process about seeing sequential revenue growth every single quarter through FY '25 in the backdrop of some of these challenges? And the second question was with regards to margins while you alluded to the onetime impact in the current quarter. How should we be thinking about -- some of our operating levers…
Sorry, there are some background noises. So, I was just requesting to understand about your margin outlook for the year.
Zensar Technologies Limited CC-Mar24.pdf · 2024-04-25
Manish, just wanted to pick your thoughts around the fact that while we've seen some amount of stability on the Hitech side in the current quarter. If you coul d talk about the steps that you are taking in terms of diversifying this business, given the fact that this vertical has a significant concentration on one single customer? And also talk about what you are seeing on the financial services side. While I do understand on the financial services side, our business is largely U.K. and South Africa. But given what we’ve heard from some of your competition, would be great to get your perspective on what you’re seeing with some of your U.S. banking customer base as well as the vertical as a whole.
Just to probe you further on this aspect. So, what we ’ve seen over the course of the recent years, some of the Tier-2 vendors e ventually have positioned themselves as a challenger vendor and winning market share against the large incumbents. If you could help us understand our strength in this space, which would essentially help us or which continue to drive success for us in the U.S. banking portfolio in the recent years. And how should we be thinking about this on a go-forward basis?

Coforge Limited

Coforge Limited CC-Jun24.pdf · 2024-07-23
Thank you for the opportunity and congratulations for the strong performance. Just wanted to get your sense with regards to the headcount addition that we have seen in the current quarter , while the headcount addition is very impressive, the increase in manpower cost is much lower. So, was this headcount addition skewed towards the later part of the quarter that is question number one? And if you could also talk about the significant step up in on -site hiring and the increase in on-site mix that we have seen in the current quarter. And the third question, once again, related to the wage hikes, if you could help us understand what drove our decision to essentially defer wage hikes by a quarter and how we are thinking about our plans to essentially manage our average resource cost which was suggested to be a significant margin lever over the foreseeable future.
So, these are just to essentially get sense on how should we be thinking about this ARC cost on a go -forward basis given the onsite step -up in terms of hiring and the relatively subdued pressure on intake in the quarter?
Coforge Limited CC-Dec23.pdf · 2024-01-22
Thank you for the opportunity and once again congratulations for the steady execution. Sudhir, while you already answered a few questions around the outlook, let me try my luck once again. So, given the macro backdrop, given the exit arithmetic’s this year heading into FY25 and both looking at your order in executable order book, how sure one be thinking about FY25 growth compared to FY24, any initiative marks on that front? That's question #1. The second question was for Saurabh, with rega rds for segmental margins, while you've provided some outlook around the Asia Pacific business mix, but when I look at your segmental margins, both India and Asia Pac essentially are a drag on, on margins, if you could talk about what's ailing that and how should we be thinking about the trajectory going forward?
Thank you and all the best in the future.

Wipro Limited

Wipro Limited CC-Jun24.pdf · 2024-07-19
While some of my questions have already been answered, I just wanted to quiz you on the segmental margin performance, especially with regards to Europe and APMEA margins, while you have spoken about some of the revenue challenges in that geography, if you could help us understand what’s driven the margin decline in those geographies, that ’s question number one. And the second question was with regards to the financial services performance in Europe with some of the leadership changes in Capco and even at the company wide level, is that also creating some drag for the financial services business in Europe for you?

L&T Technology Services Limited

L&T Technology Services Limited CC-Mar24.pdf · 2024-04-25
Just wanted a broad view with regards to the guidance for FY25 and the $1.5 Bn revenue run rate aspiration that you had and which you are still sustaining. So, are we essentially planning to do an acquisition through the course of this year to simply get to that milestone? That's question number one. The second question was with regards to Transportation verticals. While you mentioned that you've won some deal in the current quarter, but some of our peers are and given what one has been picking up on the industry, are we seeing some slowdown, some sort of a pause in this vertical in terms of customers reassessing their priorities?
One more question for Rajeev. Just wanted to understand, like you mentioned that our growth in the current quarter was a combination of the SWC seasonality and some growth in other parts of the portfolio , if you could help break that up between the two contributors. That's question number one. The second thing is with regards to the margin outlook that we are sharing for FY25 and the investments that you're talking about, if you could help us understand which areas are these going into given the fact that talent market essentially is in a far be tter shape as well as you're talking about further offshoring in certain portfolio segments. So, it would be great to get a detailed perspective on that?

LTM Limited

LTM Limited CC-Jun24.pdf · 2024-07-17
Thank you for the opportunity and congratulations on the steady performance in the current quarter. Just wanted to get your thoughts with regards to how one should be thinking about hiring for us given where the current utilization is? And also, if you could give us some sense in terms of how should we be thinking about our subcontracting cost maybe over the course of next 12 to 18 months?
Sure. And if you can probably further on the sequential improvement, typically between Q1 and Q2 we see a significant improvement in terms of sequential growth rates. Is that something that you are building as a base case for FY '25 as well given what you're seeing with your customer behaviour?
LTM Limited CC-Mar24.pdf · 2024-04-24
Just trying to prod you further on the Financial Services vertical performance through the course of FY '24. What we have seen is that our revenues have come off through every single quarter, while in the current quarter, you highlighted the impact of 2 certain projects. But how should we be thinking about this particular vertical on a go-forward basis? Because in the past, you have talked about certain consolidation deal wins in the industry, which should probably be helping your cause. That's question number one. The second question was with regards to the High-Tech vertical. How should we be thinking about the fact that our top-client performance has extremely been good through the course of FY '24, while you've had challenges at an industry level?
DC, my question was with regards to Financial Services through the course of the year. I do understand that this quarter, essentially, we had certain project cancellations. But Financial Services has been weak through the course of FY '24 every single quarter, and we have been talking about deal wins and consolidation wins for us, and that's the reason to essentially check with you on how should we be thinking about Financial Services growth in FY25.

TBO Tek Limited

TBO Tek Limited CC-Mar24.pdf · 2024-06-06
Hi, thanks for the opportunity. So, Gaurav, I have a couple of questions. The first question was with regard to some of the data metrics that you provided. Just wanted to understand what has driven the sequential drop in terms of take rates on the airline side as well as the lower gross profit margins on the airline side. The second question was a broader level question. Do you think at some point of time, given the fragmented nature of the industry, scale starts to essentially limit our growth?
So, how should we be thinking about this metric on a go forward basis? Will 2.5% as take rate on the airlines see the steady state? And then similarly, how should we be thinking about the incentives for the air business on a go forward basis?

BIRLASOFT LIMITED

BIRLASOFT LIMITED CC-Mar24.pdf · 2024-04-29
Angan, while my question pertains to certainly seeking some clarification on the Life Sciences vertical in the current quarter, was this weakness as part of the business plan? Or this came as a surprise to you? That's question number one. The second question was with regards to the client rationalization that we've been doing at the bottom end of the pyramid. This has been an ongoing journey over several years. And just want to essentially understand what do you think or where do we essentially start to think about new customer logo additions or there might be more rationalization to go with?
Sure. If I can ask one more question, this was with regards to our cost breakup between employee expenses and other expenses. If you could help us understand what drove the decline in employee manpower expenses despite the fact that we added headcount, we had an on -site centric growth? And what drove the increase in other expenses?
BIRLASOFT LIMITED CC-Dec23.pdf · 2024-01-24
Thank you for the opportunity. And congratulations Angan for the splendid performance. I had a couple of clarification questions. First question essentially is with regards to our client metrics. If you look at our total client base that has been coming more for the course of last 12 months since you joined. So just wanted to understand where are we in the journey to essentially cut the long tail of accounts so that we can focus on customers who we can mine and grow with? That's question number one. The second question was for Kamini with regards to our margin performance. Given the significant increase in offshore revenue mix, and I do understand we have given some wage hikes in the current quarter , despite that, our gross margins essentially seem to have come off. So what could have driven that change? And also, if you could talk about the factors that drove the decline in terms of non-manpower expenses?
Sure. If I can get in one more question. In the recent past, you have spoken about the SAP upgrade cycle essentially being beneficial to our business that you could talk about what are you seeing on that front? And how should we be thinking about growth in the segment over the next 18, 24 months?

MphasiS Limited

MphasiS Limited CC-Mar24.pdf · 2024-04-26
So I just wanted to get your thoughts on two things. In the past, you have spoken about on the - - from a financial services standpoint, you've spoken about strength on the retail side, strength in wealth management and retail banking, while pressure in investment banking, given the lack of deal activity. Even what we are seeing in the more recent past in terms of new IPOs coming up in the developed markets, do you think this part of the business segment starts to do well for us? And if you could provide us some broad context of your split of business across some of the industry segments within banking? And the second question was with regards to the org structure or the GTM change that we did last year. If you could help us understand where are we in terms of settling down of the new GTM structure and also talk about the progress on the new client acquisition-led growth?