Questions across 66 calls

Vibhor Singhal

Nuvama Equities

L&T Technology Services Limited

FY2027 Q1 · 2026-07-14

Hi, thanks for taking my questions and congrats to the LTTS team for a solid performance. Amit, just one question from me for you and Alind maybe and then just one for Rajeev. So, talking in terms of the broader context of how deals are shaping up, if you look at the peer set in the IT service industry, a lot of the large companies have now started reporting some large deals in the AI space, which is basically helping client’s complete end-to-end transformation using AI. Do you believe a similar kind of deal transition might also happen in ER&D at some point of time, maybe with a lag or may it is already happening, that the deal sizes might actually start increasing with the clients using AI to, let's say, do more, let's say, gamut of work from one end to the other and which could eventually lead to some sort of vendor consolidation also or do you think it's too early to call anything on that part in the ER&D space specifically?

Yes, sure. No, I'll just say that. So, Rajeev, I think very solid cash flow generation in this quarter. So, our free cash flow to net income is around 153%. I mean, is that going to -- you mentioned that the DSO range has to be between 80 to 85 is what we are expecting. Does the free cash flow to net income also remain as high as 153% or was it an aberration in this quarter and we would probably settle more at 100% to 125% range, which generally is the c ase? Yes, that's it. Those are the two questions?

L&T Technology Services Limited CC-Apr26.pdf · 2026-04-22

Yes. Okay. Thank you so much and congrats to Alind and Rajeev for their elevation. Amit, a couple of questions from my side. A very bold decision indeed in terms of divestment of the SWC business, something that we had acquired just 3 years ago. Just want to understand the thought process behind this step. I think we had earlier talked about this business offering us opportunities in the Middle East and some other places as well. So, was the consideration here just the profitability of the business that we were looking at? Or was it also that basically the growth opportunities that we saw in other segments were much better, and that is where we basically decided to allocate our capita l to. Any basically color on what the thought process was behind this decision would be really helpful.

Yes, it definitely does. Thanks for that explanation. And since you are at it, Rajeev, may I just ask a couple of more bookkeeping questions on basically accounting of that. So, we have basically the $1,232 Mn revenues that we have mentioned, that basically takes into account the SWC revenue not being considered for the entire FY26. And so does the P&L as well. Am I right?

L&T Technology Services Limited CC-Jan26.pdf · 2026-01-15

Thanks for taking my question and wishing the team a very Happy New Year. Amit and Rajeev, I have a few questions with a few more some questions. So, I will squeeze in as many as I can. Just wanted to understand the nature of this restructuring exercise that we have taken. Is it like they are some of the clients for which we have stopped doing the projects? Is it some of the divisions that we have basically kind of shut down and we will not be taking any more projects in that domain? And also, if I look at, basically breakup of this, I think it appears to be that the major restructuring has happened in the Tech segment and in the India business. So, would it be fair to say that the large part of it or predominantly this is the SWC business that we have acquired that we are kind of closing down because that is also leading to an improvement in margins?

So, is it fair to say given that we have seen a very sharp decline in the India business and in the Tech vertical that a major part of this restructure exercise would be in the SWC business?

L&T Technology Services Limited CC-Sep25.pdf · 2025-10-17

Yes. Hi. Thanks for taking my questions. And congrats on very solid deal wins. Amit, my question is on the deal wins again. I think we have seen very strong deal wins. And gradually, I think every quarter, we are just upping the benchmark in terms of the deal win quantum that we are reporting. So, just wanted to understand 2 parts to this question here. One is, of course, is it mainly because that like, we have become bigger and we have basically been able to get more kind of capabilities un der our belt, that we are able to win these kinds of large deals ? Or is it something different that we are doing? And secondly, is it somehow also a reflection of how the ER&D industry has evolved that now we are seeing the kind of deals that we had never seen before. And maybe we will probably see more of such large deals going forward also?

Got it. Got it. That's really encouraging to hear. So, is it fair to say that maybe clients are also now okay to award slightly longer duration deal or let's say, clients are also okay to award, what should I say, a multifaceted deal. As you mentioned, you start with the CTO and production engineering head in multiple. Earlier, I think most of the deals in ER&D used to be with, let's say, a specific segment and then maybe used to cross -sell. But now at the time of inception of the deal itself, you are able to stitch together multiple departments. Is that a change that is happening in the industry gradually?

L&T Technology Services Limited CC-Jul25.pdf · 2025-07-16

Yes, hi. Thanks for taking my question. Amit, I just want to understand the SWC part a bit more here. As you mentioned, outside of SWC, the business grew. We just have two data points. I think in both years in FY25 and FY26, in Q1, our revenue fell by around $10 million sequentially. Assuming that is all attributable to SWC, I mean, is this a seasonality that we are going to continue to see going forward as well that will have basically a ramp up in Q4 and then a sharp ramp down of almost $10 million in Q1 or do you think this is going to come down over a period of time as we sign more deals? Just an outlook on that because I think, overall, our business continues to be stable, but this is the one which is probably dragging the numbers down.

Got it, got it. Thanks for that very comprehensive answer and looking forward to a much lesser decline in 1Q FY27 as we just promised, Amit. Just two quick questions for Rajeev. So, Rajeev, I think if I understand correctly, I mean, SWC business has traditionally been and when we acquired it also, it is a lower -margin business. So, shouldn't Q1 automatically have a margin tailwind if SWC business ramps down in that quarter. I mean, we did see an expansion in Q1 last year and this year as well. So, could you just take me through the math as to why, despite lower SWC revenue, we see basically flattish margins in this quarter or nothing, let's say, kind of a jump in margins?

HCL Technologies Limited

HCL Technologies Limited CC-Jul26.pdf · 2026-07-13

Yes, hi, thanks for taking my question and congrats team for a solid deal wins and a great performance in the beginning of the year itself. CVK, just two questions from my side, and then I just have one small follow-up as well. So, in terms of verticals, I think, you explained the weakness in telecom and high-tech which was kind of expected and that is kind of leading us down. Our BFSI growth has been quite strong for past, I think, more than almost 10 quarters. How are the clients looking at the spends in the BFSI segment in terms of their AI strategy? Earlier we had seen a lot of insourcing happening there, but are the client’s kind of opening up to a more third-party outsourcing there, and that is what is kind of leading us to the kind of growth that we are seeing in this vertical? And secondly on the healthcare vertical, we've fallen off a bit from let's say the run rate that we used to have almost $500 million, and it's been a continuous kind of not a very sharp one, but a kind of a gradual decline over the past eight -nine quarters. So, what's ailing that sector, and how do you see, do you see any turnaround in this sector in the coming quarters? And then I'll just have a small follow - up for Shiv.

Got it, got it. Thanks, CVK for that detailed explanation. Just one quick bookkeeping question for Shiv. Shiv, the Jasper acquisition got completed in the first week of July. So, while it is not included in our guidance, it will still contribute to the revenues from Q2 onwards. Am I right on that?

HCL Technologies Limited CC-Apr26.pdf · 2026-04-21

Yes, hi. Thanks for taking my question. CVK, so my question was on the product business. You mentioned that basically there was a spillover of the last 14 days in this quarter because of which the revenue was a bit down. If I see for the full year also, our product business is down on a 4% on a YoY basis. So is the revenue that we missed in this quarter kind of a spillover we can expect to come back in Q1. And hence the next year performance for product business could look better? Or what is the trajectory that we're looking for the product business given the circumstances that we have at this point of time with the tariffs, the war, and other external factors?

Got it. And if I look at the client -specific issues that you mentioned, two in Telecom, one in Manufacturing, and one in Retail, I would assume the three of them would probably be in the ER&D part, and the Retail would be in the pure IT services part?

HCL Technologies Limited CC-Jan26.pdf · 2026-01-12

Yes. Hi. Thanks for taking my question. And congrats on a very solid performance in, what is likely, a very soft quarter. CVK, my question was mainly on the manufacturing vertical. This vertical has been under the tariff uncertainty h it as well as the auto vertical has also been taking a lot of headwinds for entirely different details , in the U.S. and Europe. How do we see the composition in this vertical with the clients? If you could break up your answer into non-auto part of manufacturing- how is that looking? Do you expect the tariff uncertainty to come down and growth to pick up in the coming quarters? And then secondly, on the auto sub -vertical, how are we looking at it? And do you think the pain is going to continue in terms of the EDR option for the challenges that the auto OEMs are facing in different sub-verticals?

And in the traditional engineering segment that you mentioned, the manufacturing part of it?

HCL Technologies Limited CC-Sep25.pdf · 2025-10-13

Yes, hi. Thanks for taking my question. And congrats on a solid performance. CVK, just a couple of questions from my side. Just wanted to pick your brains on the auto vertical. I think the manufacturing vertical seems to have kind of lifted a bit from the last quarter, but where exactly do we see that? Do you still see weakness in the auto segment, especially in European markets? And what is our outlook for that segment, let us say within the next 2 -3 quarters, do you think the weakness will persist? I will just follow -up that to the next question if you can answer that?

Got it. So, nothing around the corner at least at this point of time as we see it?

HCL Technologies Limited CC-Jun25.pdf · 2025-07-14

Thanks for taking my question. CVK, just one question from my side. You mentioned about these productivity benefits and you going to clients proactively telling them that basically these are the productivity benefits that we can pass on, even if that means let’s say slightly lower revenue. How similar is this entire productivity benefit thing? So, how similar is this to the earlier cycle of the IMS business being cannibalized by the cloud business that we saw some 6-7 years ago? How prolonged do you think t his is going to continue? Do you think this is going to eventually lead us to some period of maybe a lower kind of growth and then only the incremental growth from new opportunities picks up? Some cover on that would be really helpful.

Right. But do you see, the kind of cannibalization that we saw initially when the cloud business started, and the IMS business was impacted, a similar thing might well be possible in the other businesses that we do this time because of productivity benefits by GenAI?

LTM Limited

LTM Limited CC-May26.pdf · 2026-05-22

Thanks for taking my question and congrats on this acquisition. So Venu just to continue from where the last question left, so first of all, I think as you mentioned that we acquired this European and Australian IT services business of Randstad, so does Randstad also have IT services and consulting business outside of these geographies, maybe in US and some other domains and if yes, then what would be the reason that we basically chose this part apart from, of course, these being the white spaces for us? Secondly, you mentioned that basically the three reasons that we saw a revenue decline for the company over the past couple of years. So given at the time that we have acquired and given that they have already trimmed down their tail accounts and all, do we expect to stem the decline in revenues going forward and will this part of the business be also able to grow at our company growth rate and so let us say, for example, this year we are expecting mid-to-high single digit growth rate will this part of business also be able to grow in the same range and just a related question? This business operates in the aerospace and auto verticals in product design space as well, product engineering space as well, does it kind of create any conflict of interest with the group company LTTS or that is kind of all cleared and nothing that we need to worry about there? That will be the questions for you. I will just have one follow up for Vipul after that.

So just a question was on the revenue decline trajectory. Do you think that trimming of tail accounts is kind of complete, and we can expect the complete also, this part also to go to the company average?

LTM Limited CC-Jan26.pdf · 2026-01-19

Thanks for taking my question. And congrats on a solid performance in a seasonally weak quarter. So I had a couple of questions. One is, we have seen very strong growth momentum over the past three quarters. And as you had mentioned that, you expect that to continue. I think last quarter, we had mentioned that at some point of time, we would hope to touch double-digit YoY growth rate in this year. So with the current numbers, do you think we're still targeting for that in Q4? And the second question on the growth part is our top five client bucket declined this quarter as well after the last quarter. So any color on that as to what exactly is driving that? And when do you think this decline in the top five clients could actually bottom out? And then I will have one follow up for Vipul.

Sure, great to hear that, Venu. Just one, my follow-up question for Vipul. So, sir, I think margins are very strong performance in this quarter. Just two things on that part. Have we decided as to when are we going to give the wage hike for this year? If there is some color on that. And secondly, beyond the margins that we have reported in this quarter, do you think there is still a lot of juice left in the Fit4Future program? And margins from here can probably be expanded with the operation efficiency that you are planning to do?

LTM Limited CC-Sep25.pdf · 2025-10-16

Yes, hi. Thanks for taking my question and congrats on a solid performance team. Got two questions, one for Vipul and one for Venu. So, my question for you was on the lets say the growth momentum that we are looking at. So first of all, I think what I would want to check is that I think we have two large deals which should probably be ramping up at some point of time. So is it correct to assume that the PAN 2.0 deal should start ramping up in Q3 and the recent media deal that we have won should start ramping up in Q4?

Got it, got it. You also alluded to maybe possibly touching a double-digit growth in terms of CC growth at some point of time in this year. Does that basically still hold? And the recent deal wins and the growth in this quarter, does that align with the target that you are looking at?

Firstsource Solutions Limited

Firstsource Solutions Limited CC-May26.pdf · 2026-05-06

Yes, hi. Thanks for taking my question. So, Ritesh, a couple of questions from my side. One is , if we look at the overall industry at this point of time, I think last three, four months, I think we've seen a lot of narrative being set by the AI model builders around the basically cannibalization of revenue and the business model of system integrato rs coming into question. We of course have continued to maintain that, and you clarified it in a very detailed manner as to who's going to underwrite the outcome and how. Specifically, for the BPO industry, the concerns have been quite paramount that BPO industry is at the forefront of this disruption. Our numbers of course say the completely different story; we've had a very good growth this year, we're guiding for a strong growth next year. Now, could you basically help us understand where does the dichotomy lie? I mean, not just us, most of the I think BPO companies are reporting good growth. So is this growth coming despite the basically cannibalization of revenue due to the GenAI platforms, or the GenAI platforms which are being let's say implemented by the enterprise clients are not yielding the results as we've also heard a lot of stories about very few projects making past the POC stage? Or is it that we are gaining market share from the larger clients? What is the mix that is basically leading us to this kind of a growth despite the negative narrative around it?

Got it. And on the first point you mentioned about that expansion of TAM, would you believe that given that we are in the initial stages of the GenAI cycle, the TAM expansion also would be in initial stages and the TAM expansion will continue and perhaps maybe accelerate in the coming years?

Firstsource Solutions Limited CC-Jun25.pdf · 2025-07-30

Ritesh, two questions from my side. One is the banking vertical was a bit soft this quarter . But just to dig deeper into that, anything that you would call out, what are the conversations in the sector like? And that was the flattish quarter and this was more like a quarterly aberration. Secondly, just wanted to take your comments on the overall industry landscape that we are looking at right now, given the context that one of our large competitors was acquired by an European firm very recently in a mega billion-dollar deal. So, what exactly is the prospect that we are looking at? A company acquiring a large competitor in terms of size is the Gen AI thing is becoming more and more beneficial for the BPO industry and that is where we see the value. Anything that you can give a color in that context would be really helpful.

So, basically, I mean, even if, let's say, a large IT services company is looking at acquiring a BPO business, you don't see that they are a combined offering of services plus BPO, you don't see that as a threat to the pure BPO model that we continue to ma intain, given our size that you are looking at. Is that right understanding that you are trying to convey?

Tata Consultancy Services Limited

Tata Consultancy Services Limited CC-Apr26.pdf · 2026-04-09

Hi, thanks for taking my question. Just two questions from my side. One is, Krithi, we mentioned our AI revenue to be around $2.3 billion annualized, that's basically almost 6.5% to 7% of our total revenue. Wanted to basically understand, if I were to draw a parallel to the last digital cycle, there also, I think after a certain stage, we had started quantifying our digital revenue. The way we saw that cycle play out is that initially there was cannibalization of revenue. And at the same time, we had growth from the digital revenues. And gradually the growth from the digital revenue was able to more than compensate the cannibalization of revenue. Are we seeing a similar trend this time? Do we expect a similar cycle to follow this time also, that there are productivity gains that we are passing on to the clients because of which we are losing out revenue? On the other hand, your $2.3 billion is going to grow much strongly. And at some point, of time in the coming quarters, we'll probably reach an inﬂection point. Is that a good way to look at the GenAI cycle? How similar or different would it be from the last cycle? That would be really helpful.

That was really helpful, Aarthi. Krithi, one more question from my side and it's probably more at a strategy level, maybe you and basically the team can answer on that. If you look at FY26, we ended the year at -2.4% CC YoY decline. If I compare our revenue growth this year with our closest competitor, the difference would be almost 5 to 6 percentage points. That's probably the widest that the gap has ever been. But on the other side, our margins are very, very strong, probably one of the highest margins that we have. We, of course, remain at the highest margin level in the industry, and we are very strong in margins while the entire industry is facing a lot of margin pressure. What is the company level strategy at this point of time, like, we want to continue to focus on the proﬁtable growth part. Have we ever discussed that? Should we be ready to compromise a bit of margins to maybe boost growth? What is the direction in which the board and management is thinking in terms of balance between a better growth and proﬁtability?

Tata Consultancy Services Limited CC-Sep25.pdf · 2025-10-09

Thanks for taking my question. So Krithi, just once again, on the AI data center investment. Given that you mentioned that it's going to be more like a sovereign data center and given the GDPR regulations across the world, is it fair to say that this will have limited synergies with our existing clients and most of the clients that we would be deploying in this data center will be more of India based and that is where we would be looking for any synergies if at all from our current sector?

And you mentioned that we've basically gone ahead with this, as for the demand commitments and the annuity commitments. I would assume we would already have conversations with.

BIRLASOFT LIMITED

BIRLASOFT LIMITED CC-Feb26.pdf · 2026-01-28

Angan, just one question, couple of questions, actually. One question was on the Healthcare segment. If you look at the Healthcare segment, right now it is undergoing turmoil. Even day before yesterday, the U.S. government spending on healthcare was increased very marginally year-on-year, whereas it has historically been around 5%. There were challenges from the One Big Beautiful Bill also, which came into the fore some time back. So, how are our conversations with the clients in this vertical looking like at this point of time? And what is the outlook that you have for this vertical, maybe over the next, two to three quarters? Second question is on the deal wins part. As you mentioned, this quarter deal wins had a couple of large deals because of which that number got boosted . If I, let's say, look at the last three quarters, we have done approximately $150 million of deal wins every quarter. Now, this number used to be in the $250 million range some time back. You mentioned next quarter, we are looking at better than Q3, which should be north of $200 million. But the pipeline that we have, do you see us, let's say, post-Q4, do you see us maintaining that $200+ million trajectory and possibly reaching $250 million also in the coming quarters? Your outlook on that would be really helpful.

On the deal wins. We have done $150 million of deal win. Do you think post -Q4, we can do north of $200 million and maybe touch $250 million sometime?

Wipro Limited

Wipro Limited CC-Jun25.pdf · 2025-07-17

Thanks for taking my question. Congrats on a solid performance and a very near term environment. So, my question was again on Capco. I think as you mentioned the Capco reported a decent single digit Y-on-Y growth. So, basically if you could basically take us through the overall environment that we are looking at , this is an environment in which the post tariff uncertainty one in which we have seen a lot of challenges and discretionary spends being put on hold. Capco by the nature of its business, probably reflects that and still we are seeing good growth . D o you see this basically momentum continuing? Any reasons that you see that we have been able to do well while others might be facing challenges? Any bit of color on that would be really helpful.

Is the pipeline also looking good in Capco in the coming quarters?

Tech Mahindra Limited

Tech Mahindra Limited CC-Jun25.pdf · 2025-07-16

Hi. Thanks for taking my question. Mohit, just to delve a bit deeper into the uncertainty that you mentioned about, especially in the manufacturing and the auto vertical, I mean, we have seen this uncertainty impacting us. The 9th July deadline has come and gone by. Now we are looking at the August 1st deadline. So, in your recent conversation with the client, have you seen a further deterioration of the overall environment in the uncertainty increasing and clients who are holding back their spends? Or do you believe it is pretty much the same as we were when we spoke in April?

Yes, sure. I think that's the commentary that we are hearing from other guys as well. Just a couple of quick clarifications. Our headcount in BPO continues to increase. I think this quarter also we saw a Q-on-Q increase in the headcount. Any color on that that you can provide? I think we have all been hearing about a lot of GenAI impacting the BPO business. But this headcount addition signals otherwise. So, any color that you can give on how we are looking at the BPO business and do we expec t that to continue to basically grow in light of the, even despite the impact of the GenAI rollouts?