Sonata Software Limited CC-Jun24.pdf · 2024-07-31
Akshada, let me just add to what Jagan said. So, if you recall back in May, when we talked about, we guided that will be between 1% to 3% for Q1 and Q2, which was our expectation, and I think we come within the range of what we have guided for in the first half of the year. We fully expect to come back on growth to our old growth rates by the third quarter of this year. I think that's something that we're working on. We're very excited about the pipeline and the order book that we have. For the first two quarters of the year, we had seen that back in January, March quarter that these will be a little softer quarter for us. That's point number 1. Point number 2, when we guided for being a $1.5 billion company that was about two years back that time the market scenarios were different. So, we do expect about two to four quarters delay on the original plan. But we are still very much pushing and working towards getting to the 1.5 billion with maybe about two to four quarters delay on the overall run rate, we talked about earlier, Akshada.
That is correct. So, if you recall, our earlier large deals were closing in about one to two quarters, average was about two quarters. This time for closing has now become about three to 3.5 quarters. So, we are definitely seeing that decision delays impacting our ability to close large deals from a longevity perspective or duration point of view. However, because we have, like I said earlier, we have 49 large deals. So, we're still very optimistic about the momentum to keep catching up as we address this decision delays that we have been seeing in the marketplace. So that's what is explaining the Q1, Q2 softness that we have seen compared to our own run rate. That's what we guided earlier. We have seen that coming. That's why we guided the market for two quarters, we'll see slightly lower -than-expected growth of our own run rate. As far as the margins are concerned, clearly, the healthcare deal that Jagan alluded to, this is a transformation deal with AI built in. So, we're going to make an investment in the deal itself in the next three quarters to make sure that we can transform the AI built-in state, and also, this is a largely on-site deal right now and work to move from on-site to offshore. And as we move the work from on-site to offshore, our profitability will kick back in latest by Q4 of this year. That's what our expectation is right now.