Questions across 60 calls

Nitin Padmanabhan

Investec

Infosys Limited

Infosys Limited CC-Jun24.pdf · 2024-07-18

Yes, hi. Good evening. Congrats on the quarter. I just wanted your thoughts on, one, the Financial Services space. You did mention that you sa w growth from mortgages, cards, payments and obviously capital markets. When you think of the sustainability of this recovery, how should we think about it, because mortgages, for it to continue to give you a delta would require rates to come down meaningfully? And from a cards perspective, it looks like delinquencies in the U.S. are rising. So it is like a mixed data point that we see on the outside, but just wanted your thoughts on how are you thinking about the sustainability of the recovery on the Financial Services space? And then I had one more quick question? External Document © 2024 Infosys Limited 13 So, Nitin, what we are seeing right now is early sign s, as I said, of recovery. Of course, it is early signs, so we do not know how sustainable at this point in time it is going to remain, but the fact that we saw volume growth after many quarters, we sa w strong growth in our Financial Services after again six-odd quarters. So I think those are the posit ives that we are taking. We are seeing large deals, both the ones that we have signed and the ones there in the pipeline. So all of that put together gives us a little bit of confidence on that. But yes, we have to see more data points to see how the year progress.

So one of your smaller peers characterized it as Financial Services who have sort of stalled multiple projects in the past and having not spent for almost six quarters having to make those spend because that is causing problems and thereby that is seeing a pickup with short-cycle projects on those deals. Would you characterize it similarly? Are you seeing something similar?

Updates Infosys Limited has informed the Exchange regarding 'Earnings Call Transcript'. · 2024-04-18

Yes. Hi. Good evening. Thanks for the opportunity. So Salil, you mentioned that the discretionary spending environment is similar to that of Q3 and Q4, and there is no change. Is it considering that Q3 and Q4 have seen higher declines versus the other quar ters of FY '24, is it fair to assume that Q3, Q4 from a discretionary spending perspective has been the worst versus the whole of FY '24 and we are basically assuming that, that kind of a situation is sort of continuing through FY '25? That is the first question. External Document © 2024 Infosys Limited 25

Yes. And is this discretionary headwind more specific or, let us say, are more pronounced in BFSI? Is there any such trend or is it broad-based?

Infosys Limited CC-Mar24.pdf · 2024-04-18

Yes. Hi. Good evening. Thanks for the opportunity. So Salil, you mentioned that the discretionary spending environment is similar to that of Q3 and Q4, and there is no change. Is it considering that Q3 and Q4 have seen higher declines versus the other quar ters of FY '24, is it fair to assume that Q3, Q4 from a discretionary spending perspective has been the worst versus the whole of FY '24 and we are basically assuming that, that kind of a situation is sort of continuing through FY '25? That is the first question. External Document © 2024 Infosys Limited 25

Yes. And is this discretionary headwind more specific or, let us say, are more pronounced in BFSI? Is there any such trend or is it broad-based?

Updates Infosys Limited has informed the Exchange regarding 'Earnings Call Transcript'. · 2024-01-11

Hi, good evening, thanks for the opportunity. Congrats on the strong deal wins. So I think, first off, Salil, anything that you have seen versus the previous quarter in terms of client behavior that suggests green shoots on the discretionary side? Or do you think that will continue to be under pressure for some time? The second question is for Nilanjan. It appears that we will exit the year with margins lower than last year. Do you still believe that margin could be better next year versus the current one? We have sort of highlighted that as an aspiration at the beginning of the year, so just wanted your thoughts on how one should think of that at this point in time? Thank you.

Okay. Thank you so much and all the best.

Infosys Limited CC-Dec23.pdf · 2024-01-11

Hi, good evening, thanks for the opportunity. Congrats on the strong deal wins. So I think, first off, Salil, anything that you have seen versus the previous quarter in terms of client behavior that suggests green shoots on the discretionary side? Or do you think that will continue to be under pressure for some time? The second question is for Nilanjan. It appears that we will exit the year with margins lower than last year. Do you still believe that margin could be better next year versus the current one? We have sort of highlighted that as an aspiration at the beginning of the year, so just wanted your thoughts on how one should think of that at this point in time? Thank you.

Okay. Thank you so much and all the best.

LTM Limited

LTM Limited CC-Jun24.pdf · 2024-07-17

Hi good evening. In the prior two quarters, we did have some element of pass-through revenue. But if you look at the other expenses, that hasn't really tapered. So just wanted your thoughts on how pass-through revenues have behaved during the current quarter. And the second one was on compensation increases. Do you believe that those are in line for payout next quarter?

Sure. And just one more, if I may. Sudhir, you mentioned that there's a push for high-priority projects at this point in time. There are a couple of elements at play. One, you have elections which are on the corner. And you have enterprises who have maybe not spent for 5 to 6 quarters to the extent that we would have liked. So do you think this is just a bump for elections? Or do you think this is something that can sustain and we should see a consistent improvement from here on. How would you think about it based on what you're seeing in the market?

LTM Limited CC-Mar24.pdf · 2024-04-24

I had a couple of questions. So one is, how are you looking at the discretionary spend environment and the BFSI portfolio as we look out into next year? So that's the first one. The second is, how should we think about margins because even if I look at the current quarter, it looks like there are a couple of moving parts, which need some context. One is that the employee costs have gone up on an absolute basis despite headcount having come down. And from a balance sheet perspective, it looks like the right of use assets has gone up by almost INR 600 crores sequentially. So just wanted some context on both these things, along with the broader view on discretionary, BFSI and margins.

LTM Limited CC-Dec23.pdf · 2024-01-17

With reference to the headwinds that we're facing, if you could give us some context on which verticals are really seeing this extended pain because some of our peers have actually called out maybe bottoming out on BFSI and so on so forth. So just wanted your thoughts on those verticals and how things have evolved. And what's really causing the pain going to next quarter?

Sure. So, what I was a little unclear abou t is that some of the furloughs will sort of recover. And we've had pretty strong deal wins over the last 4 quarters consistently. So when th at happens and our pass-th rough will also continue. What is the big drag is what I'm unable to understand. Is it very broad-based drag? Or is it specific to any specific area?

HCL Technologies Limited

HCL Technologies Limited CC-Jun24.pdf · 2024-07-12

I had a clarification on State Street. So, I think in the press conference, you mentioned that there was an impact on BFSI this quarter from State Street. And next quarter we should have a 0.8% impact on revenue. So, did I hear that right? Because when I see the headcount fall of 8,000 and State Street is out, the acute headcount cost remains the same on a sequential basis. So, it feels like people have left towards the end of the quarter. So, the question is one, is there any impact on revenue in the current quarter due to State Street and should we assume that 80 bps for the whole of next quarter?

The second thing to clarify was, in this quarter, I think we mentioned $70 million is the gain on other income due to State Street, but I think the consideration was $170 million. So, the rest comes in the next quarter. So, that was one on the State Street side. And I had another one, which is, CVK, you alluded to some weakness in Germany on the EV side. Could you help contextualize that a little better as to what exactly you are seeing? And finally, I think yesterday there was this ISG call and even on the TCS call, there was this talk about the impact of GenAI on ADM and Infra. So, when ISG put that number at around 30% of cost savings, TCS put it at 5% to 20%. Just wanted your thoughts on this because you have usually been very candid about these things. So, just wanted your thoughts on how, what are your observations on this space?

HCL Technologies Limited CC-Sep23.pdf · 2023-10-12

Just wanted some color on the cost s. So, I think this quarter the fall in a lot of cost items s eem very sharp, almost like there's an intentional cut on these cost s, so travel for instance, is down almost 30% sequentially and 13% year-on-year. Similarly, we have seen that in training and a lot of other things. I was just wondering what is the context to this? Is there anything specific? Was it macro or was it just about or something has reall y changed here in terms of the way we are doing things?

Tata Consultancy Services Limited

Tata Consultancy Services Limited CC-Jun24.pdf · 2024-07-11

Hi. Good evening. I had three questions. The first one is on the press conference you had mentioned that you look at three indicators broadly when you look to assess the recovery. So I think it was the evaluation of ongoing projects, how much people want to spend on cost optimization and how much people want to invest. Could you please expand on that, at least from a BFSI and retail CPG perspective? So that's the first one on how you're seeing trends across those three buckets. The second is on margin levers. I think last year, after the first quarter, we saw almost 100 basis points margin expansion each quarter. But since then, I think we have sort of brought down subcontracting fairly well. We have also improved utilization fairly. So just wanted your thoughts on the puts and takes on margins, on how we should think about it on a going-forward basis? And lastly, ISG basically spoke about some 30% cost savings in ADM and infra due to GenAI. I just wanted to understand your experience on that and how you're seeing that pan out. Thank you.

Sure. So Krithi, just had a follow-up. So, the revaluation of ongoing projects, I think last quarter was pretty bad (4QFY24), not only for you, but for everybody. There was a lot of reprioritization of projects. From a trend perspective, are you seeing that come off or it is still extremely uncertain? Well, it may not have been better this quarter, you see that it is still very uncertain on the reprioritization.

Redington Limited

Redington Limited CC-Mar24.pdf · 2024-05-16

So I think when you look at the results and the numbers, it broadly looks like there is weakness in certain markets. If you could give some color on the weakness that you're seeing today and how long do you sort of expect this sort of weakness to persist? And even some -- I think the SISA business mobility has sort of weakened quite a bit on a sequential basis. So just your thoughts on the broader market. Maybe if you could just split it by different geos, what you're seeing? And how long do you think the weakness continues when you think you sort of start seeing a recovery? Some color and context.

Sure. And during the quarter, the finance costs have sort of moved up. So one, has intra-quarter debt been high because we are seeing end of period. So that's one. And second, from a factoring costs, have they sort of started coming off? If you could give what the number is for this quarter versus the last and how that's evolving. Yes, those are the 2 questions.

Redington Limited CC-Dec23.pdf · 2024-02-07

I have a couple of questions. The first is on the factoring cost. I'm assuming it's around INR 141 crores for the quarter. It was INR 86 crores for last quarter. So this factoring cost, is it driven by any specific geographies? Is it more ROW driven or Ind ia driven? And when do you see this sort of tapering off? That's the first question.

Okay. So this would be the way you would sort of operate on a going -forward basis, more factoring and less of -- how should we think about it? Lower debt, more factoring, is that how you're thinking about it?

KPIT Technologies Limited

KPIT Technologies Limited CC-Mar24.pdf · 2024-04-29

Congratulations on a solid quarter, solid year, great guidance. So, a couple of things. So, one is from a guidance perspective, when we give a guidance, it ’s based on the deals that we have already won. And are there some assumptions on certain wins you expect in the future for that guidance number? And second is how does the large deal pipeline look like? And are we baking in any of those, if any, into that? Just two broad things to start with.

And how does the large deal pipeline look at this point in time? And I think on the earlier question, on the deal wins for the current quarter, well, there were 2 significant deals. Would you classify it of the size that we won earlier of the $100 million odd? Or it would be much smaller than that?

KPIT Technologies Limited CC-Dec23.pdf · 2024-01-30

Congrats on the quarter. A couple of questions. The first is looking at the environment, broadly, you're not seeing any risk at this point of time is my understanding. Is that a fair assumption? And basically, existing programs and everything despite whate ver nuance I'm hearing, are on track and there's nothing to really call out on?

Perfect. Very helpful. Second is you mentioned three or four customers where you could probably end up with larger engagements. Could you give some colour on which geographies these are from or anything specific in terms of the breadth of the engagement? Do you think we can see something -- are these very large deals like what we saw last year? Or these could be gradual -- may not be a large deal, but over a course of period will be large as they keep coming up into revenue? Just some broad thoughts on those three, four clients you alluded to.

Zensar Technologies Limited

Zensar Technologies Limited CC-Mar24.pdf · 2024-04-25

Congratulations on a very all -rounded quarter. I have a few questions. The first is, if you contrast where we are today from the total order bookings and, let's say, definitive client situations, how would you sort of contrast it versus maybe even 6 months ago? Do you think we’re in a better place and there is more sustainability on growth? So, that was the first one. Also, if you could layer on top of that, how are you looking at Hitech as a segment overall? Do you think that from a declines perspective, that's behind us? Because this quarter obviously benefited from furlough recoveries. Do you think that's sort of behind us? And is there more clarity there? And finally, I think on the depreciation front, some color on the drop there. I think I missed the opening commentary on that.

Sure. And just one thing which I missed is from of the deal wins that we have announced, the tenures are still sub 12 months? And do we have a large deal win within this number? It's a very solid number.

Zensar Technologies Limited CC-Dec23.pdf · 2024-01-22

Manish our deal wins have let us say on a trailing 12-month basis have sort of picked up it's up 23%. Just wanted your thoughts on a couple of things. So , one has the deal wins of Q1 and Q2 completely ramped up and do you think that the following quarter will be a growth quarter despite continuation of furloughs so that's the first one. The second is how are you thinking about Hi-Tech at this point in time, w hen do you see this sort of the trajectory sort of at least stabilizing is the second one and I have one more as well I'll follow up post this?

The third one was when do you think Hi-Tech can sort of stabilize and you seeing incremental deal wins at some point that will start offsetting the pain that you're seeing from the client?

Zensar Technologies Limited CC-Sep23.pdf · 2023-10-17

I had a couple of questions on the deal wins. I think on the face of it, the deal wins look strong at 1.3x book to bill. Normally I would assume that this would lead to a strong Q4 , but I think you made a few qualifications there saying there is a spillover and the renewals. Could you give some color there? And assuming a strong Q4 with these deals flowing through into Q4 revenue, is that a wrong assumption? Just wanted your thoughts on how to think about this.

So, here's the challenge. The broad thought process was that margins will improve – we have done extremely well on margins – and growth should be tail-ended. And at least on the face of it, it looks like based on the deal wins that it could be. What are the concerns that you have? I did notice that Hitech is down sharply and maybe Q3 is soft because of furloughs. So , I just wanted your thoughts on how to think about this. Do you think that these deal wins will not convert to revenue or there are possibilities of delayed convert to revenue?

MphasiS Limited

MphasiS Limited CC-Dec23.pdf · 2024-02-02

Hi, Good morning, Nitin, Manish, wishing you a happy new year. I had three questions. The first is on the seasonality aspect. The information technology vertical or the Hi-tech vertical actually saw a sharp decline this quarter. Was that purely furloughs? And should we anticipate a recovery in furloughs going into next quarter? Because some of our peers have been sort of suggesting extended furloughs and so on and so forth. So, just wanted your thoughts on that. The second is on the margin skew. So we have seen margins sort of improve significantly on the insurance vertical and BFS as well. So is there any one-off there because utilization has come up quite a bit and should that be near-term headwind? So that will be second one. And finally, the deals that we won in Q1, have they largely ramped up? Or is it still in flight? I think those are the 3 questions.

Thank you so much. All the very best.

Tech Mahindra Limited

Tech Mahindra Limited CC-Sep23.pdf · 2023-10-25

Yes. Hi. Good evening. Thanks for the opportunity. Rohit, I had a question on the absolute employee costs. I think over the last four quarters on an absolute basis, this is up almost at a 3.5% CQGR. Well, revenues have d eclined. Even the absolute employee count has also gone down. So if you could give some context there, that would be very helpful. The second is your thoughts on telecom. Do you think it's sort of is bottoming out? And how you're looking at it? How should we think about it as we look into the second half and going further? Those are the two questions.

Sure. Just one last question for Mohit, if I may. Is that over the years we have done a lot of acquisitions and do you see that a lot of these acquisitions that have been done, that the cross - sell opportunities to multiple customers across TechM, has that sort of been embedded or that's something which is sort of a low-hanging fruit that can be sort of executed on as we go forward?