Salil Parekh: The volume specifics, I did share, I mentioned that there was continued constraints or pressure on that. What is happening, if you step back a little bit, is there’s impact on revenue which is from slowing or stopping of discretionary work and all the transformation programs, and then we have on the other hand with the large and mega deals, some of those starting up, that’s giving us benefit on the revenue side. There, we saw the volume constrained from the first part of that in this quarter. In the coming quarters, you know that well, we will have in Q3 the usual seasonal impact with the end of the calendar year, holidays and so on, and typically for us, for Infosys, Q3 and Q4 are softer quarters in any case, so we anticipate that.
We don’t have a view which is different from that. That’s how we are looking at it going in. But these things are changing as we go through each quarter, so we were fortunate we delivered a very strong quarter, but we are just–as we look out, we can see the pressures with the clients, and that’s what gives us the reason to be watchful on both those sides.
Kumar Rakesh: Thanks for that. My second question was, during the press conference, you did talk about that Infosys is working on proprietary large language models, so clarification is, are these models that you’re working on Infosys-owned, or these are for clients or your ecosystem partners, and what kind of model use cases and data sets you are using for them?
Salil Parekh: There, was I was referring to was proprietary models from our partners. We are not developing a large language model of our own, we are working–as you know again, there are a large number of these models which are already in the market. Some of them are proprietary and some of them are open source. We are working with both types of those models. Typically, we are working in what’s called the narrow transformer approach, which really we start to see data sets which are a little bit more enterprise-focused, which allow enterprise–a large client to take advantage of that data set for their own activity, and the applications–again, you’ve probably seen that, we are seeing applications on, of course, software development, on text, on voice, on video, so we are seeing applications today on all of these areas, actually working on all of these areas, and that is for the clients.
Then, we are doing some work inside Infosys as well for our own–for our own activities.
Kumar Rakesh: Got it, thanks. That’s very helpful.
Operator: Thank you. The next question is from the line of Sandeep Shah from Equirus Securities. Please go ahead.
Sandeep Shah: Yes, thanks for the opportunity. The first question is, Nilanjan, in your opening remarks, you mentioned that the mega deal wins and the first order book signing will help us to accelerate the growth in the–beyond FY24, but is it fair to say most of the deal wins of this year will have solid support in terms of the growth pick-up in FY25?
Nilanjan Roy: Yes, I mean, these will translate into revenue one day. Like I said, they will start in FY25, and like somebody else answered [indiscernible] one day they will start together, so they will have a run-up, but absolutely there are deals. Some of them start even sooner in FY24 towards [indiscernible].
Operator: Sandeep, is the question answered? Thank you, we’ll move to the next question. That is from the line of Nitin Padmanabhan from Investec. Please go ahead.
Nitin Padmanabhan: Yes, hi, good evening and thank you for the opportunity. I had two questions. One is on the discretionary spend. Yesterday, I think [indiscernible] had mentioned that they don’t think discretionary spend recovery in 2024. Just wondered your thoughts on how are you thinking about this overall, and in the context of this, while we are seeing very strong deal wins this time around, and obviously those are deals that would have been under the hood for maybe the last 12 months which have all closed, when you look at it going forward, do you think that deal activity per se could sort of slow down? Is there a risk there, or if you could give some context in terms of pipeline versus how it was before these deals closed and how is it today, is there a lot of replenishment that needs to be done to reach back the same levels? That’s the first question.
Salil Parekh: On the first part, we don’t have a view on financial year ’24 in terms of volume and so on. What we are sharing today is what we’ve seen, for example in Q2, and what we observed from that, keeping in mind some of the seasonality of this coming quarter and the end of our financial year. On the pipeline or deal activity, as Nilanjan was sharing, we see a good pipeline. Of course, the deals we have closed have come off of the–come out of the pipeline, but it’s still a good pipeline for us. There’s a lot of interest from clients in cost and efficiency and automation, which is where many of these large and mega deals have come in. There’s a good interest in consolidation, which is where some of those deals have come in, and we continue to gain market share in that, so we feel good about it. There is that continuing interest in that type of work.
Nitin Padmanabhan: Sure. The second question was the underlying assumption on the guidance, if I understand right, is that the revenue accretion from these large deals will be very miniscule this year, and you have headwinds on the discretionary side. The bigger accretion should really happen maybe next year, so this year is very miniscule, that’s a really fair assumption?
Nilanjan Roy: Yes, so I mean the definition of miniscule can be quite different, but yes–I mean, it’s largely in FY25, absolutely.
Nitin Padmanabhan: Yes, so I meant on a quarterly run rate basis, would it be miniscule of that coming into the revenue versus what you originally thought? That was the question.
Nilanjan Roy: Yes.
