Thank you very much. We will now begin the question -and-answer session. We will take our first question from the line of Abhishek Kumar from JM Financial. Please go ahead.

Hi, good evening, Warren and Savitha. Thanks for taking my question. First question Warren is on demand. You mentioned in your opening remarks that there are isolated cases of weakness in few clients. I just wanted to understand what do you mean by isolate d cases and what gives you the confidence that these are not because of the EV slowdown or more broader trends and then I have a follow-up?

Yes. I think just responding to that. At an aggregate level, we're not really seeing any drop in demand. What we have seen over the last couple of years is that there are specific customer related issues that are impacting the quantum of investment and the speed of investment. And so, we're having to monitor that. But again, at an aggregate level there is little change in the demand environment. And specifically, and I think if you look at the OEMs, they're largely segregating into two groups those that have strong balance sheets that can invest through the transition in and around not just electrification but connected and shared and autonomous. And those organizations that do not have the ability to invest in the same way and they're obviously having to balance their | 13 investment commitments with the short-term requirements of the business. So, we're watching and following those trends and obviously look into as best we can pick the winners.

Sure. Second question is on FY '25 outlook you indicated sequentially there should be acceleration from Q2, but just the arithmetic given a soft start to the -- in terms of probably achieving growth similar to FY '24 could be difficult. So, any -- I mean, do you think the assessment is correct if any color you would like to give us for the full year growth expectations for FY'25?

Well, I think what we can say is that we are confident in being able to drive sequential growth from the Q1 position. Q1 was not only informed by the runoff at VinFast, we also had some phasing issues with a couple of large projects that also contributed towards the solid, but somewhat flat performance of the services business. We don't anticipate that, that will continue and specifically the programs that I've referenced have now kicked off and started. And so, we are confident in the quarter -on-quarter growth that should see the business at the end of the year being much improved in terms of volumes from where we are today. And I think as we always do, we'll continue to work to monitor things as the year plays out and we'll calibrate accordingly. But right now, I can say that we are confident in consistent growth across the quarters as the fiscal year plays out.

Great. Thank you so much and wish you all the best.

I appreciate it. Thanks for the question.

Thank you. Next question is from the line of Ruchi Mukhija from ICICI Securities. Please go ahead. Ms. Ruchi Mukhija can you check if your line is muted. | 14

Thank you for the opportunity. Warren, I had question on demand only. You report there has been some issue in a couple of large projects. Could you elaborate more on what kind of issues are these, are these going to persist, or do we see reversal of these issues and we can count on growth from these projects?

When large programs kick off particularly mid -cycle full vehicle programs , there's always the dynamic of setting the projects up in the appropriate way. There is a dependency upon the styling studio. There's a dependency upon on boarding suppliers at the right time and the complexity of balancing all of those things out very often crops a staggered start or a delayed start. And that's what we've seen with the programs that I've referenced, but I will repeat that those programs are now online, and we've got clarity in terms of what they mean not just now, but what our expectation is for the full year.

Secondly, one of your large peers HCL Tech called out specific weakness in automotive or in European geography. Is your experience suggest something similar? Do you expect -- or do you see any challenges specifically for your European clients?

No, somewhat to the contrary we are engaged obviously with our anchor customers, Tata Motors and JLR. They have had a very good set of results themselves in the recent past and that's informing their confidence in terms of capex and investment in new products. We announced the joint venture with BMW in -- at the beginning of the fiscal year. We are building out our presence in Germany and despite the fact that investment commitments is somewhat specific to the individual customers in that region, I think again at an overall level demand continues to grow. There is some volatility in the North American market that I think is being driven by concerns about the potential legislation change towards the end of the calendar year, but it's not having a material impact. | 15 So, from our perspective we remain cautiously optimistic about the demand environment and certainly that's informed our confidence in our commitment to drive sequential growth from the first quarter.

I got you. Thank you and all the best.

Thank you. We have a next question from the line of Moez Chandani from Ambit. Please go ahead.

Good evening and thank you for taking my question. My first question was on your near-term outlook. Sir, do you expect growth to be gradual in Q2 and then accelerate forward in Q3 and Q4 or do you think that we'll be returning to significant sequential growth in Q2 itself. So how do you see growth coming in throughout the next few quarters?

We don't provide guidance but what I will say is that we expect growth to pick up and we expect growth rates to be relatively range bound. I do not necessarily anticipate that Q3 and Q4 will be very different than Q2. But we're obviously pushing hard across all of the sectors that we are operating in and we're engaging in a very strategic way with all of our key and focused customers. So, we'll be looking for opportunities to accelerate growth, but as of right now in terms of visibility we th ink that growth will be relatively consistent and again range bound.

Got it. And also, on the BMW JV when do you start -- when do you expect it to start contributing to revenues?

Well, we expect the joint venture to be launched in the second half of this fiscal year. I announced in April that we have to go through regulatory approval. We have to confirm the seed team and confirm the leadership team that will run that organization. Our plans are going well. We're working through the work that will need to be undertaken to ensure that, that organization is launched in a successful way, and the impact that will have on the business. | 16 And I think we'll have much greater visibility as we enter the second half of the year. So, I'm not going to comment on the impact that it will have on our business, but the business plan as confirmed at the beginning of April is being executed as we expec ted. And certainly, as far as timelines are concerned, we're confident that we're going to meet what we've committed to each other.

Thank you. Next question is from the line of Rajiv from Citi. Please go ahead.

Can you talk about the performance of service business ex VinFast? And also, can you share what is the contribution of VinFast in 1Q? And the second question is you have talked about the phasing issues which you have faced in 1Q. Are all these behind or some part of it will also play out in 2Q?

Thanks for the question, Rajiv. I think -- if you look year -on-year as the business ex VinFast, we've grown the services business by close to 26%. And so, I think that demonstrates the momentum that we certainly enjoyed over the last 12 months. And I think if we look sequentially, the business ex VinFast is up about 1%. In large part that's the case of the challenges that we have in terms of the phasing of the large projects. But we certainly expect to be able to pick up from that in Q2, Q3 and Q4.

Yes, that's all from my side.

Thank you. We have a next question from the line of Nitin Sharma from M.C Pro Research. Please go ahead.

Warren, how large these commercial vehicle dealings are? A broader range would be fine. And also, do you see a rise in the contribution from the commercial retail segment significantly in FY '25?

If I understand the question, you're asking about the commercial vehicle business. | 17

Just how large these deals are -- the buckets? Is it 50 million plus -- 10 to 50...

Well, we're not providing specific information about the size of the deals. We are covered by client confidentiality agreement. But what I can say is that they are material and I think what I'm excited about as far as the 2 deals that I referenced in my op ening comments. One, the cap design opportunity is a demonstration that our full vehicle credentials that we've established in passenger vehicles are applicable to the off-highway and the truck sector. And I'm also very excit ed that the commercial truck industry is really now starting to invest in software-defined vehicles in a way, again that we've seen from the passenger vehicle, et cetera. And our involvement at a middleware level is exciting because it really positions us ce ntrally to help the customer that we're working with architect and deploy the platform from which Connected services will be delivered to not just the product that we are working on but to future products as well. And so, we're expecting that relationship to extend beyond one program. So, the sort of direction of our commercial truck business the business that we refer to as industrial heavy machinery is not only improving in terms of the Quantum revenue that it represents, it's also improving strategically. And that gives us confidence not just for this fiscal year but beyond.

Understood. And one book -keeping question. Is it possible for you to share how much was the education sub-segment revenue in rupee terms.

Sorry, sir, we cannot hear you.

Yes. One book-keeping question. Is it possible for you to share how much was the education sub-segment revenue in rupee terms? | 18

Yes. Maybe that is something that we can share with you through our IR team after the call. Is that okay?

Perfect. Thanks, and all the best.

Thank you. Next question is from the line of Ashish from JM Mutual Fund. Please go ahead.

In one of your recent interactions, you did mention that FY '25 momentum. So, whatever you achieved in FY '25 that momentum will continue in FY '25. So, given that in FY '24, we did around 15% kind of a revenue growth would it be fair to assume that you ha ve a reasonable amount of confidence to achieve that similar revenue growth run rate even in FY '25?

Again, we don't provide guidance -- specific guidance but what I can say is that we will assert what I've said previously. We expect to grow from the first quarter. We expect a relatively strong year this year. The visibility that we've got across the sect ors that we are operating in gives us confidence at this stage that momentum will continue along calendar year 2024 and into calendar year 2025. So right now, we're not seeing any drop in the demand environment. And so, we'll continue to inv est in order to be able to take full advantage of that.

Fair enough. Sir, incrementally, anything on the semiconductor business if you could share because Tata Electronics is setting up a unit along with PSMC. Is there a certain role that we also have to play? Is there an opportunity that you see?

When we look at the semiconductor sector. There’re 2 areas of interest for us in terms of value that we expect to deliver. One is in smart manufacturing. There is a significant opportunity here in India not just with the group but with the potential that is building in and around semiconductors. And we think that the skill sets that we've established in sectors like automotive are fungible to | 19 the semiconductor industry. We are also excited about the fact that as OEMs look to bring down their cost and control the type of capability that will inform future products, they're looking to vertically integrate software and electronics, which includes silicon. And we are in some fairly exciting discussions with some of our customers that will look to leverage the product from organizations like Tata Electronics in a packaged way in support of future product development.

Fair enough. And lastly, on Airbus anything you would like to show in terms of timeline as to when we can see the commercial ramp-up benefiting us?

What we've seen at Airbus, we've seen growth in the first quarter from the second half of last fiscal year. We expect that to continue in Q2 and also in H2. And not only are we looking to discharge the current order book at Airbus, as you can imagine, we're also looking for additional opportunities and we're in discussions with Airbus in different parts of the world about those opportunities. We're excited about the Airbus relationship, but we're also excited about the aerospace sector. I referenced in my comments the deal that we've secured with an aircraft seat manufacturer the business class and first -class seating manufacturer. And that organization is looking to leverage our support to build an ODC here in India. And I think the opportunity that represents is not just an opportunity for us to increase our aerospace volumes it represents obviously diversification from the relationship that we've got with Airbus and that's something that we expect to build upon.

So, in all segments, the Airbus deal can be as larger to all VinFast was to us then you go that's a fair assumption?

No, I certainly think that the potential with Airbus is there for us to grow significantly. But one of the things that I would caution you on is that the | 20 aerospace industry is a highly regulated industry. And so, one has to demonstrate process and capability compliance before one is entrusted to be able to take on at different and bigger engagements. And so, we're working very closely with Airbus to demonst rate what we are capable of. And as confidence builds, then obviously, we will look to extend our current ambition.

And sir, last question, if I may. This for Savitha, ma'am. You said on margins -- like to maintain margins for FY'25. So, are you benchmarking FY'24 exit margins or first quarter FY'25 margin?

Well, the margins between first quarter and the full year '24 are not too far apart. So obviously, let's take the higher one as a target for the year, and that's really what we want to try and aim towards. And as we see progress of business growth and pipeline during the year, we will see other opportunities that evolve as well before we move into fiscal’25.

This helps thanks and all the best.

Thank you. Next question is from the line of Chandramouli Muthiah from Goldman Sachs. Please go ahead.

My first question is just on the utilization rates. It's pretty healthy, 86.5%. And you mentioned that you're redeploying employees more efficiently in the firm. Just trying to understand how you're thinking about hiring outlook for FY'25. And in the past few years, what has been sort of the maximum utilization rate that you've been able to achieve. So just trying to understand, so the interplay between hiring and utilization in our sort of efficiency and margin journey going forward?

Just in terms of utilization, I'll make some comments, and then I'll invite Sukanya, our Chief Operating Officer to come in and talk about the work that we're doing, not just in the area of utilization, but also in other areas of operational efficiency. I think the utilization rates that we achieved in Q1 are | 21 close to the optimum levels of utilization that we're going to look to drive inside of our business. When we look at utilization, we obviously look at it at an aggregate level, but we also look to analyze utilization, both onshore and offshore , there's more work that I think that we can do onshore rather in terms of improvements in utilization. But I think for the most part, we're close to an optimum level in our offshore center.

Yes. Thank you, Warren. And I think I'd just like to add there that while we are focusing on utilization, I think the important part is also to look at how the whole demand is shaping up and as the focus area has changed, there is going to be capability building investments that we need to continuously do so that we can repurpose a lot of our workforce to the new area. So, there will be some more hiring that we will do, and also look at optimizing our pyramids. So, it will be a combination of GETs that we will hire as well as look at augmenting the capability by looking at recruiting for certain areas and at the same time, having a focus on the utilization.

That's helpful. My second question is just as you look at how you're building your business for the next few years. If you were to split your key areas of activity into aerospace, education, industrial, automotive. Just trying to understand where you see the maximum opportunity and potential for the company to capitalize on growth, like if you were to sort of divide the business into these 4 buckets, just trying to understand what your rank order of opportunity set would be amongst these key buckets?

Yes, it's a good question. I think if we look at demand across the different sectors, I think if we look at percentage growth, aerospace is perhaps the sector that represents the larger opportunity because we're coming up such | 22 a pretty small base. I also think that the investments that we've made in aerospace in the last 2 years to 3 years, we've really not yet fully harvested. And so, I think if we look 12 months, 18 months, 2 years from now, I would certainly expect the aerospace business to make a bigger percentage contribution than it does today. But the core of our business is automotive, and it will continue to be. And if you look at automotive, despite the volatility from a sales perspective, the R&D investment in the transformation that is going on in automotive that continues to excite us, not just in the short term, but medium and long term. The industry is going through a once in a generation transformation and the investments that are being made in autonomous driving in the move to alternative propulsion systems. And in the move to connected and software- defined vehicles will drive a signifi cant demand for engineers and for the services that organizations like ourselves provide. So we'll be focused on taking advantage of that work at the same time and looking to take advantage of our footprint in aerospace and the opportunity that is there.

That's helpful. And my last question is just trying to understand sort of the VinFast, little bit it looks like we are now coming towards the end of whatever the customer-specific changes are in their outlook. So just trying to understand, are we now at sort of close to 0 level contribution from VinFast. Is there a very minimal sort of maintenance revenue that will continue there? Just trying to understand how to sort of now piece that out and start analyzing the rest of the business?

Yes. At VinFast, as I commented, we've completed the 2 vehicles that we were responsible for. We're very proud of those 2 vehicles. VinFast will launch the vehicles this year, and we think that those vehicles will have a significant impact on the markets in which they are launched. The product development work is largely concluded. | 23 They are moving to a focus upon building the products that we've engineered for them. We'll continue at a relatively modest level to support that. And as their fortunes are confirmed in and around the success of the products that they are selling in differ ent parts of the world, we expect them to at some point in the future, invest in extending their portfolio. At that point, we will have the opportunity, I think, to compete for similar types of projects that we've delivered in the last couple of years. But as of right now, the only visibility that we've got is to maintain a relatively small footprint with VinFast, and we expect that to continue in the coming quarters.

That's helpful. Thank you very much, and all the best.

Thank you. As there are no further questions, I would now like to hand the conference over to Mr. Vijay Lohia for closing comments. Over to you.

Thank you, everyone, for joining us on the call today. We hope we've been able to answer most of your questions. If there are any further questions, please do get in touch with the Investor Relations team, and we'll be happy to answer your questions. Goodbye from all of us here at the management team. Thank you.

Thank you, members of the management. On behalf of Tata Technologies, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.