Questions across 66 calls

Vibhor Singhal

Nuvama Equities

Coforge Limited

Coforge Limited CC-Mar25.pdf · 2025-05-05

Hi thanks for taking my question and congrats Sudhir and team for a solid performance yet again. So, Sudhir, two questions from my side. One is in terms of growth, you had called out that the pipeline also looks quite healthy at this point of time, despite the very strong bookings that we have had in this quarter. So again, I mean, it is just because we are operating in an environment in which there is quite a benign commentary by a lot of our peers. How do you see this basically pipeline shaping out over the next few quarters? Any specific pockets that you want to call out in which we have seen very good strength that you believe could be the driver of the deal wins next year. The next year growth is of course taken care of by the deal wins this year, but what could be the driver or what segments could you see be the driver of next year's deal wins? Then I have a question for Saurabh, maybe if you can answer this and then I will have a follow up with Saurabh.

Got it, got it. And specifically, if I could just pick your brains on the travel vertical that is one vertical in which we have seen a lot of airlines coming with profit warnings. United went ahead with a bimodal guidance in terms of the environment. How is the environment in that vertical looking like? I know we had the largest deal in that vertical in this quarter. But going forward, are you seeing some sort of, let us say, uncertainty or delay in decision making from the airlines specifically? The airlines part of the travel vertical.

Coforge Limited CC-Dec24.pdf · 2024-12-27

Thanks for taking my questions and congrats on a solid performance yet again. Sudhir a couple of questions for you and then I have one for Saurabh. I mean the growth of course is super strong but just two aspects of this. What are the conversations around the GenAI adoption at this point of time? It was widely believed that the GenAI adoption in the initial stages could actually be deflationary in nature. There could be some cannibalization of revenue. What is your view on this? Are we already into that phase or do you think that we might hit that phase maybe some quarters down the line and how do you see that playing out? And secondly, on the travel vertical, just wanted to pick your brain. I think the travel vertical has rebounded quite sharply for us. Last year was not that great of a year. I mean, it was still a good year, but I think still growth was softer than the other verticals. So is this turnaround because of our recovery in our core travel clients like airlines and hospitality or is it because of the travel ancillary companies like logistics or some other domains that we had divested into?

Got it, got it. Thank you so much for that detailed explanation. I have just a question for Saurabh. So Saurabh, if you could just briefly outline the impact of the two ESOP schemes that we had. One was in 2019 ESOP scheme, if I am correct. How will that wane out over the next couple of quarters? And of course, you mentioned the current ESOP scheme, when is the timeline for that expected to be a positive impact on the margins? And just a related question our utilization is at 81% at this point of time. I mean, most of our peers are operating at almost 85%. One of your closest peers took that level to around 87% in this quarter. So any specific reason that we are keeping it at these levels? Is it a merger related anomaly? And do you think this could be a good margin lever going forward?

Firstsource Solutions Limited

Firstsource Solutions Limited CC-Mar25.pdf · 2025-04-28

Congrats to the Firstsource team for a very solid quarter yet again. Ritesh, my question was on a couple of remarks that you mentioned in your opening prepared remarks. You mentioned that our size at US$1 billion is probably the perfect size. We are large enough to drive changes in a client's portfolio and yet small to be agile enough. Does this revenue size also work in our favor in an environment like this in which there is an overall macro overhang and more of vendor consolidation? Do you think at this point of time relatively smaller players like us tend to lose out? Or do you think with our capabilities we are able to mitigate that as well? My second question is basically on the overall demand environment. We are almost one month into Q1, probably one of the most uncertain quarters that this industry has seen because of the tariff situation. Any colour on what the client conversations are looking like, is there more of indecision and delayed decision making?

Got it. That was really helpful. Also, the weakness that we saw in the retail segment was that very much client and seasonality specific as you called it out? Or was there also some overhang of the tariff related uncertainty that we have seen with other companies in the retail sector?

Firstsource Solutions Limited CC-Dec24.pdf · 2025-02-07

Yes, hi. Thanks for taking my question and congrats on another solid quarter performance, Ritesh, to you and your team. Ritesh, my question was, I think you partly tried to answer that and I am sure we did this a lot on the overall impact that we are expecting of, let's say, the GenAI and of course the new versions that are coming up in the market in a very frequent manner. I think the initial understanding was that yes , a lot of the BPO transactions or work might be impacted because of the GenAI adoption, but our growth has definitely kind of outshone that and definitely I think it's proven that even in this business there are multiple things that we can do. How are you seeing the trajectory going forward? I mean, in terms of client conversations, are we able to basically get incremental more work like data centralization and all, which is helping us grow in that business? And do you believe that in some part of that cycle, maybe not in the next few quarters, maybe sometime, let's say, maybe over the next 1, 2, 3 years, there would be some cannibalization of revenue. Net-net, we might again go back and grow again in revenues, but do you see some cannibalization of revenue happening to our business or the industry business at some point of time. Any color on that is really helpful?

Got it. So, would it be also correct to say that the, if I look at the vertical wise, the verticals which are more B2C focused, like you mentioned consumer tech or the BFSI or even retail, these are the verticals which are probably ahead in the race of using the, I mean, trying to implement these solutions than the typical Manufacturing and the other Energy B2B segments from the industry knowledge that you would have, not just sticking to the process?

HCL Technologies Limited

HCL Technologies Limited CC-Mar25.pdf · 2025-04-22

Yes, thanks for taking my question. CVK, just wanted to get some color on the vertical distribution. What is the conversation that we are having? I think some of your peers have called out specific weaknesses in the Manufacturing and Retail verticals. Because here the companies are expected to be impacted more by tariffs if at all they come in at some point in time. Given that we had called out weaknesses in the auto segment, probably falls in the industry. What are we hearing in these verti cals and do we also see these verticals to be at the brunt of the entire market also really to begin with and then maybe spillover to other verticals or is it anything different that you are seeing there in your conversation with clients?

Got it. I think the conversations that you're having with clients, say the uncertainties that they're talking about, I mean, are we able to make out that is it like a kind of a temporary uncertainty that they are waiting for the final listing of the tariffs at the end of the 90 -day period? Or do you believe they are in for a longer store and they're still not able to make up their mind about the tech spends and the way forward their business is going to be?

HCL Technologies Limited CC-Dec24.pdf · 2025-01-13

CVK, just wanted to get some color on the manufacturing vertical. I think a couple of quarters ago we had called out that we had seen some weakness in the German automakers and overall vertical. What is it that you are picking up at this point of time and if there is still weakness, do you believe that will persist for some time and your overall outlook on how we should look at the sector from the next three months perspective?

Got it. That was very helpful. My second question is on a different retail vertical. This vertical had typically been quite weak all through the last year for entire industry. We had one of your peers recently talking about the vertical bottoming out and we too have delivered quite a handsome performance in this vertical in this quarter. So, if you could just throw some light on what are the moving parts in thi s vertical, do you think most of these consumer companies or which pockets are the ones which are seeing this kind of momentum? And specifically, is it more US retail or Europe retail, which is kind of showing a stronger performance than the other one?

HCL Technologies Limited CC-Sep24.pdf · 2024-10-14

Thanks for taking my questions and congrats on a very solid quarter. CVK, just two questions from my side. If I look at the growth that we have delivered this quarter, I think it has been kind of a very broad -based growth, excluding the BFSI segment and there also if I exclude the State Street divestment, I think the growth has been pretty solid in terms of QoQ terms on all the fronts. So, do you expect this growth momentum to continue because if there is no other, I mean, a large deal, something that could have started in any of the verticals. So, is it just the ramping of the deals that we had, basically won over the past 12 months that has led to this kind of growth? And any headwinds that you see in any of the verticals in the upcoming quarters from the growth point that we are standing at?

Got it. Fair enough, CVK. My second question was on the manufacturing vertical. I think we had some of the auto companies, some of the profit warning, some of the leading companies, and there are other things also which are kind of some basically concerns about strength in that. What is our view on that? What are we seeing in terms of our communication with the clients? Manufacturing has been the mainstay for us from point of view. And from the industry, I think also it's known for some time . Is that segment seeing some headwinds going forward? Are the clients trying to pull back some strength? Anything, any color on that will be helpful?

Wipro Limited

Wipro Limited CC-Mar25.pdf · 2025-04-16

Yes, hi, thanks for taking my question. So, two questions from my side. Srini, on the overall macro weakness that you have spoken about. So, can you give a bit of color as to —I’m sorry I was disconnected for a part in that—but highlight that was some part of the weakness also responsible for the slightly lower growth that we reported in this quarter. And given that we are exiting FY25 on a negative, I mean on a decline, and we would be entering FY26 also on a negative note, is there a possibility that we would be able to record a positive growth in FY26 or FY26 also is likely to be year of revenue decline just like FY25 was? And then I have a follow up for Aparna.

Got it. The initial part of the question was, was there any weakness also felt in this quarter also because of which we came towards close to the lower end of the guidance or Q4?

Tech Mahindra Limited

Tech Mahindra Limited CC-Dec24.pdf · 2025-01-17

So, Mohit again, harping on the very solid deal win number in this quarter. So, as we talked about a lot already on this call, three of the six large deals that we have won in this TCV suppose telecom segment, given that you mentioned the other pipeline as well, how sustainable do you think this deal win number is? Or do you believe there is still in fact more room for this number to grow given that we haven't had some other verticals which could potentially come in the coming quarters? So, just to understand where we are in the journey on this TCV and the potential numbers that we could probably look at in coming quarters?

So, it is not that we are looking at just the deal win numbers or let us say a concentration of some maybe inching up, you do believe there is a good enough pipeline for this number too continue for this?

LTM Limited

LTM Limited CC-Dec24.pdf · 2025-01-16

Thanks for taking my question and congrats to the team for very solid deal wins in the quarter. DC, my question was on the manufacturing and the Retail vertical. In the manufacturing vertical, we have reached back the $200 million to $220 million quarterly run rate after almost 3 to 4 quarters. So, I mean very solid growth in this quarter, but I think from overall market participants we're hearing a lot of negative commentary regarding the auto segment while the ex- auto remains quite decent. What are our clients talking about it? How is our portfolio aligned towards that?

Given the deal wins that you mentioned in this vertical in this quarter, can we expect the growth momentum in this vertical to continue in the coming quarters?

LTM Limited CC-Sep24.pdf · 2024-10-17

Congrats DC on a solid quarter. Just two questions from my side. Firstly, on the BFSI vertical, very sharp recovery from what we saw especially in the last 2 quarters of the last financial year. You also talked about some of the deals in BFSI, which are there in the pipeline and we should be able to close very soon. So just to look at the outlook in the sector, do you expect the growth momentum in this vertical to continue, especially after the interest rates also coming in? What are the specific areas in the BFSI that you're looking at in terms of higher expense, let's say, capital markets or insurance or which part of those businesses? Any color on all those aspects would be helpful. And then I'll have a follow-up question.

Got it. So the discretionary spend, those remain on hold. That we have not seen any change from, let's say, the last quarter?

L&T Technology Services Limited

L&T Technology Services Limited CC-Dec24.pdf · 2025-01-15

Thanks for taking my questions and congrats on a very solid performance and a strong deal win. So, Amit, I have one question for you and two after that for Rajeev, maybe. So, I think the strong deal win as you have mentioned in the pipeline also appears to be quite strong. Any colour on the conversations that you're having with the clients in terms of their excitement or apprehension either way with the new government had to take charge in US, I mean the macroeconomic data also has been kind of robust. So, are the client conversations happening around incremental spends in the R&D new pockets being opened up or is it still a tale of caution as we had seen in the last quarter, the pre-election caution and will be some time before we are over that?

Got it. Thank you so much for that elaborate answer. And just to recheck, you don't see any geopolitical impact at least on the verticals that you mentioned, and you expect the momentum to continue in those verticals?

L&T Technology Services Limited CC-Sep24.pdf · 2024-10-16

Congrats Amit and team for a very solid execution in this quarter. So, Amit, just wanted to dwell on two aspects. One is on the Mobility segment. You mentioned that you are looking at a seasonal weakness in Q3 in the Mobility segment. Are we certain about the fact that the weakness that we're looking at is more of seasonal and not much of structural? We've had a couple of auto OEMs, some of the profit warnings. We've had, a couple of your peers already talk ed about weakness in the auto segments, specifically in Europe and specifically in Germany. Where spends on most assets have been curtailed. SDV continues, but I think those are also kind of talked about in harsh tones. So, any colour on that would be very helpful?

Amit, the second question, is on the Maharashtra Cyber Security Project. So just want to understand the dynamics of it. So, you mentioned there is some bit of work left on this -- in the project. After that, we will probably get a milestone payment. And post that, does this project come to an end? Or is there some other maintenance revenues that will keep clicking on for the next forthcoming years as well?

Tata Consultancy Services Limited

Tata Consultancy Services Limited CC-Dec24.pdf · 2025-01-09

Thanks for taking my question. So, Krithi, again, just to dwell a bit on the discretionary part, the comment that you mentioned. Now one of the things that has been plaguing us and the industry over the past 2 years was the discretionary part of many of the existing deals have been put on hold from the client side. So, are we basically seeing some recovery in that as well in terms of clients that were looking to put that back on the anvil along with, of course, the normal recovery that you mentioned in your comment and explanation thereafter?

Got it. And specifically, in the BFSI segment, if I could just dwell a bit, this is a segment which has historically been one of the biggest adopters of technology. You mentioned that they are also the ones which are also looking at wide-scale GenAI adoption. So, any progress that you believe that we are also making in terms of the legacy code modernization, the opportunity that we showcased in our Analyst Day as well? Any POCs or projects which have gone towards an incremental advanced stage on that front about which we can talk? :

Tata Consultancy Services Limited CC-Sep24.pdf · 2024-10-10

Good evening. Thanks for taking my question. So, Krithi, just to dwell a bit more on North America. If I look strictly in terms of dollar revenue terms, we fell by almost $60 million in our North America revenue, almost half of it assuming came from the health care segment, which was down almost $28 million. So, which are the other verticals in which we saw some kind of weakness in US specifically? And was that also of a similar nature like health care or client -specific issue which you expect to may be recover in a couple of quarters? Or do you think there is a more structural issue to some of the shortfall in the revenue, maybe like the telecom sector?

Got it. So, by that count should -- are we sticking to the commentary that we mentioned last quarter, the retail sector has also possibly bottomed out for us and next quarter onwards, we could see some green shoots in that sector as well?

Cyient Limited

Cyient Limited CC-Sep24.pdf · 2024-10-24

I was just trying to understand the seasonality that we spoke about in Q2 in the sustainability vertical, I went through the transcripts of the last 4 years of the company, and I couldn't find anything that we would have mentioned about the seasonality in the business ever before, any of our peers in IT services or ER&D they haven't spoken about any kind of seasonality because of European holidays also either this quarter or in Q2 before this as well. So could you just help us understand what is the kind of clients that we are talking about, which is leading to this kind of seasonality? And will this be a recurring phenomenon going forward as well?

Got it.

BIRLASOFT LIMITED

BIRLASOFT LIMITED CC-Sep24.pdf · 2024-10-23

And Angan, real appreciation from my side, I think you have taken real trouble to explain the situation that the company is in. I really appreciate. I think the company, as you rightly said, I think there will be volatile quarters here and there. And amidst that, a company o r the management should not lose the long-term goal that they are after. So , I completely appreciate that. But I have a more strategic question, which is not related to just one or two quarters, but from a longer-term point of view. Now, we have been saying that the last two quarters have been weak in terms of TCV. But if I look at our FY '24 TCV also, that was also up only 1% Y-on-Y. So, actually, if you look at it, if you compare the numbers from FY '23 onwards, our deal close for the past six quarters have not been that great or have been quite modest. And in that, we have also taken some vendor consolidation and infrastructure deals, which have basically impacted our margin. So, if I remove those deals, the deal wins in our core area, which was transformation projects and all, that has been pretty weak, so to speak. So, is it that these kind of deals have dried up or is it that we are not able to match up as to what exactly is required in those kind of deals? And when do you think this situation can change over the course of, let's say, maybe two, three, four, whatever quarters, whatever time that it takes? And then I have a follow up to that question.

Just a follow up to that, Angan. I mean, at this point of time from a near -term point of view, it appears that we have got into a kind of a vicious loop. We are chasing, I mean, we got maybe one or two infrastructure consolidation deals because of which our margins have fallen from 14% to 10% this quarter. And maybe next quarter, because of wage hike will probably come to maybe some single-digit numbers. On one hand, just one or two deals have taken our margins to this. And now we are actually looking to expand margins next year because most of these projects will move from onsite to offshore, but at the same time , we are ch asing more deals in the consolidation and the infrastructure space in which the year one itself will be margin dilutive. So, that will be kind of a recurring phenomenon for us. If we don't go for those deals, our TC V growth will be muted, so our revenue growth won't come. But if we go for those deals, they will be margin dilutive and our margins won't come. So, I think it's become a kind of a judgment call on, let's say, a call that we have to make, a dilemma between whether we go for revenue growth or margins, because it appears from the current scenario in the near term, it is difficult to achieve more.

BIRLASOFT LIMITED CC-Jun24.pdf · 2024-07-31

Angan, just a clarification, I mean, I don't know if you've mentioned this again. The project deferrals that we saw in this quarter and the project completion that we saw in this quarter again, which were probably not -- were able to backfill by the new pr ojects. Most of them will also be Manufacturing segment itself? Or are they kind of spread across other verticals as well?

Got it. Got it. And now to just correlate that. If I see our client's bucket growth, almost all our client bucket growths have seen a very sharp Q -on-Q decline, be it top 5, top 10, top 20, top 5 to 10 or top 10 to 20 also. So I mean, if it was just only m anufacturing clients, which had those projects ramping down and delay in projects of manufacturing ramping up, the decline across all client buckets would not have been so sharp. So anything that I'm missing here in terms of how we correlat e these 2 sets of data?

Infosys Limited

Updates Infosys Limited has informed the Exchange regarding 'Earnings Call Transcript'. · 2024-10-17

Yes, hi. Thanks for taking my question. So Salil, I just wanted to pick your brains mainly on how the BFSI vertical is looking at this point of time. Post, the interest rate cut, has there been a change in conversation or let us say change in the approach of the clients towards discretionary spend that they might be picking up in upcoming quarters. How do you see that vertical play out? And then I have a follow-up.

Got it. Okay. My second question was on the TCV side. TCV of this quarter appears a bit on the softer side. Would you attribute that to anything specif ic? Is the client conversations at this point of time on the side pushing the deals out because of the pending U.S. elections? How would you read that? And how do you see the deal flow in the coming 2 quarters of the rest of the year?

Infosys Limited CC-Sep24.pdf · 2024-10-17

Yes, hi. Thanks for taking my question. So Salil, I just wanted to pick your brains mainly on how the BFSI vertical is looking at this point of time. Post, the interest rate cut, has there been a change in conversation or let us say change in the approach of the clients towards discretionary spend that they might be picking up in upcoming quarters. How do you see that vertical play out? And then I have a follow-up.

Got it. Okay. My second question was on the TCV side. TCV of this quarter appears a bit on the softer side. Would you attribute that to anything specif ic? Is the client conversations at this point of time on the side pushing the deals out because of the pending U.S. elections? How would you read that? And how do you see the deal flow in the coming 2 quarters of the rest of the year?