Nilanjan Roy: So Kawal, you know better than anybody else, when we set out the large deal strategy more than five years back, we were close to about 21% margins. We have signed probably $50 billion-plus in large deals and today we are 21%, 21.2%, so we have not seen any margin erosion because of the large deal strategy. We recognize overall the periods and this experience that we had. We will sign on these large deals. Of course, up front they will have margin pressures, and from a portfolio perspective as you look in the deal tenures, we have the experience to say how we can improve the margin of the deal from day one versus, say, in year five, and in a way, that’s the portfolio we are able to rotate, going at deals. At the same time, we’ve got cost optimization programs to make these deals [indiscernible] portfolio margins, and remember I said the proof in the pudding is in the eating – $50 billion of large deals later, our margins are where they were.
Kawaljeet Saluja: Okay, sure. Thanks a lot.
Operator: Thank you. The next question is from the line of Moshe Katri from Wedbush Securities. Please go ahead.
Moshe Katri: Thanks, and congrats on very strong TCB bookings for the quarter. We’re trying to figure out the conversion pace of some of those large deals that–I mean, I guess at this point, it seems that we haven’t seen a lot of that conversion happen, but when do we start seeing that reflected in better top line growth? Is the March quarter next year, it kind of could be the quarter when we could actually see better comps for top line growth because of those conversions? Is that the right way of looking at it?
Nilanjan Roy: Yes, so there are a number of deals in this pipeline, some will start in Q4, some which we signed last quarter have already started coming, a bit of that in 2Q, so it’s not like one day we suddenly have these 21 deals [indiscernible], so there are sales, and in terms of even ramp-ups, you will see it’s not that–you know, the run rate on the day of the revenue booking, some of them take a longer period, so it’s a combination of all that.
Moshe Katri: Okay, and do we–and these are–just to be clear, these are deals that are funded with the calendar ’23 budget, so you don’t need calendar ’24 budget to continue funding these deals, is that the right way of looking at it as well?
Salil Parekh: Sorry, can you repeat that? This is Salil – I couldn’t hear that, Moshe.
Moshe Katri: Yes, so the deals that you’ve won this year are funded with calendar ’23 budgets – I just want to confirm that, i.e. you don’t really need the approval of calendar ’24 budgets to continue funding these deals? Is that the right way of looking at it?
Nilanjan Roy: Yes, so they already come out of existing budgets, but many of these are actually cost take-out programs in this environment, right – vendor consolidation, cost take-outs, so actually we are giving money back, in a way, to the organization, which is why in a way we are winning these deals, right?
Moshe Katri: Yes, good. Then the final question, do you have any view – maybe Salil, you can talk about that – about the calendar ’24 budget cycle, that probably should start maybe by next month? Do we feel that the budget cycle is going to be on time? Do you think there’s going to be budget delays, which is what happened earlier this year? What are you seeing at this point based on some of the client conversations that you’re having? Thanks a lot.
Salil Parekh: Thanks – yes, this is Salil. The way we are seeing the client conversations today, we don’t see a change that’s come about. There is a lot of constraints with clients, whether it’s on transformation programs or discretionary projects, which are significantly reduced or slowed down, so that thinking is continuing on. As you pointed out, over the next few weeks, we will get a better sense if that’s changing, either improving or not for the following year, but at this stage, that’s the mindset we are seeing. There is attention on cost and efficiency, which also continues as we are seeing in discussions, so the conversations that we’ve been having over the last few months is the same tone we see as they’re going to the end of the year for next year’s budgeting. We don’t see a change in that at this stage.
Moshe Katri: Understood, thank you.
Operator: Thank you. The next question is from the line of Kumar Rakesh from BNP Paribas. Please go ahead.
Kumar Rakesh: Hi, good evening. Thank you for taking my question. My first question, Salil, was–
Operator: May I ask you to speak up a bit? Your audio is a little low.
Kumar Rakesh: Yes, is this better now?
Operator: Yes, go ahead, please.
Kumar Rakesh: Thank you. Salil, my first question was around the volume performance during the quarter. You did talk about that it is under pressure, and last quarter also you had talked about it, so during the quarter, how was the volume performance you saw through the quarter? Was it further deteriorating since where we saw last quarter, and is your guidance implying that there will be further deterioration outside of the seasonality in the coming two quarters?
