Salil Parekh: I think the way we’re looking at the guidance is typically Q3 and Q4 are seasonally weaker quarters, so that is something we factored in, in addition to what I was sharing earlier, the slowing of discretionary transformation, and with the larger mega deals, seeing how the ramp-up will look like as it converts, but we looked at more of what we see seasonally a weaker Q3 and Q4 from our historical perspective.
Gaurav Rateria: All right. Secondly, you closed a couple of mega deals in the last few months. Now when you look at your large deal pipeline, how do you characterize this? Do you still have mega deals that you are pursuing which can close in the coming months?
Salil Parekh: There, we’ve closed four of these mega deals that I referenced earlier. We have a good pipeline, we are not detailing beyond that the type of deals. What we see is the deals that we have closed have come off, but there is a huge appetite with clients for cost and efficiency, and those tend to be larger within even our large deals pipeline, so yes, we will see some of those larger deals going ahead.
Gaurav Rateria: Got it. Last question to Nilanjan, the Project Maximus that you talked about, is it fair to say that the full benefit would accrue to the company in fiscal ’25, and it just started to kind of trickle into the numbers in recent quarter but the full benefit will accrue in FY25?
Nilanjan Roy: Like I said, there’s a very complex program, there are a number of tracks, so we have new ideas as we see each quarter. You will see an impact over, like I said, maybe 18 months of this program and throughout as we’re tracking it every quarter, and like I said, sometimes we will see a faster benefit, like utilization, for instance, is clearly something which is here and now, so you will see some of that impact even faster, but some of course take longer to materialize.
Gaurav Rateria: Thank you.
Operator: Thank you. The next question is from the line of Keith from BMO. Please go ahead.
Keith Bachman: Thank you very much. This is Keith Bachman from Bank of Montreal. The first question I have is you’ve mentioned a few times–
Operator: Sorry to interrupt, but your voice is a little bit muffled. Can I request you to use the handset more closer to you?
Keith Bachman: Yes, absolutely. You’ve mentioned a few times that discretionary spend or discretionary projects are a reason for the revenue guidance and reporting. Can you tell us what percent of your revenues would you characterize as being sourced from discretionary areas? Is it 30% of total revenue, 40% of total revenues? Any rough estimate you could give us on how much of your revenues are generated from discretionary sources?
Nilanjan Roy: Yes, so we don’t really give that number out in the public domain, so I think that’s where we are. Of course, generally they are fixed price projects, they are more committed. The [indiscernible] side of the house will have a bit of variability into it, but we don’t give the discretionary really.
Keith Bachman: Okay. The 7.7–the second question is the 7.7 large deal TCB, within that number, do the clients have the ability to cancel those contracts, and what is–if it’s yes, what’s the cancellation rate been over the last few quarters versus historic norms?
Salil Parekh: These are largely signed contracts. They take time to ramp up, so we have not seen any real cancellations, really. They may take longer to ramp up than originally [indiscernible], but there are no cancellations, really.
Keith Bachman: Okay, fair enough. Perfect. Then my last question is as you think of–Infosys and TCS and Accenture and other IT services organizations are experiencing challenges with growth, so it’s an industry-wide issue. Against that backdrop when you think about pricing that your clients are willing to accept, have you seen any changes in like-for-like pricing when you’re negotiating with clients for large deals or otherwise? Has that changed at all, or has the like-for-like pricing remained fairly steady even in this weak macro backdrop?
Nilanjan Roy: Yes, I think you’re right. I think largely it’s been stable. Of course, in some quarters you can see a few clients are coming back and asking for discounts, but I think overall, even if I look back, it has been–you know, in terms of the annual renewals, etc., I think pricing has been more stable over the last year or two years as a general trend, I would think in the industry. Of course, deals would be–it gets competed hard, but overall I don’t see a deteriorating pricing environment.
Keith Bachman: Okay, that’s it for me. Many thanks. Cheers.
Operator: Thank you. The next question is from the line of Yogesh Aggarwal from HSBC. Please go ahead.
Yogesh Aggarwal: Yes, hi guys. Just one question on large deals, which have been extraordinary, almost two, three times of your past run rate. Was curious what is the share of large deals from existing customers versus new? Can you just give some context there?
Salil Parekh: So there again, we shared the net new amount, which is 48%, but we don’t share what is from new clients versus not new clients.
Yogesh Aggarwal: Okay, so the reason I’m asking is, it’s very intriguing that clients are not spending on small discretionary projects but are wanting such mega contracts, so is it possible since this year, everyone is cautious, they are just scrubbing a lot of smaller projects and avoiding in larger deals, which means next year, even if effective, they have two years of catch-up on discretionary spend?
Salil Parekh: Some of these deals have been publicly announced. These large programs are a combination of, many times, cost or efficiency, automation programs, and sometimes the programs which take all of that, let’s say the saving that the client is likely to accrue, and from that fund some transformation programs. These don’t appear from our interactions to be a consolidation of smaller discretionary work, these are large independent programs, and that’s why we feel, first, that in that space, which is today really more active, this cost efficiency space, we seem to be gaining market share, and that those, with the way they’re being set up and what we see, give us a good foundation for our future.
Yogesh Aggarwal: Fair enough. Thank you so much.
Operator: Thank you. The next question is from the line of Vivek Gedda from SBI Mutual Fund. Please go ahead.
Vivek Gedda: Hi. Thanks a lot for the opportunity. Salil, in fact based on your comments that you just made, I just wanted to get a sense of the market share gains that you have been talking about currently [indiscernible]. Could you give us a sense of how these market share gains have been [indiscernible]? Are you seeing [indiscernible] out there and how are you thinking of it?
