Salil Parekh: There, we are seeing more discussions on cost or consolidation, and when for example you have a win as we’ve had over the last few quarters and consolidation of partners with a client, there is a significant change that changes the market dynamic within that client, and then we put all of these things together between some of the large programs you run on cost efficiency and then on consolidation, it looks like we seem to be gaining traction. We have a very good capability set on automation and clients are appreciating that, so that seems to be the reason why we believe or we think that it looks like we’re gaining market share in those areas.
Vivek Gedda: Is there a way to think about [indiscernible] to quantify from the sense that are you seeing that client budgets are actually not [indiscernible] while you potentially are–you potentially have many more deals versus what your peer set’s are?
Salil Parekh: Difficult for us to say on a sort of macro level, but I think generally speaking, the client budgets, at least, we don’t see those increasing at this stage.
Vivek Gedda: Got that. Secondly, I also want to get a sense of the [indiscernible] some of these large deals that you’ve won, and maybe context of how it has been historically, so while there have been [indiscernible], actually it’s probably logical to expect that we will have long tenure deals, but if you can give us a sense of how ACB growth has been versus [indiscernible] growth.
Salil Parekh: So there, some of them, with the disclosures we have done, have that information, but we don’t generally speaking share that information for the aggregate, and thirdly not vis-à-vis what was going on in the past. But for the specific ones where we’ve had the disclosures, we’ve shared that information.
Vivek Gedda: Got that. Just lastly from my side, I just wanted to also get a sense on these third party items, almost increased by $25 million. [Indiscernible] we called out that one-time revenue [indiscernible] which is lately less than what we figured. Is that different items, and how to think about that?
Nilanjan Roy: Absolutely, they are different items, and in [indiscernible] the margin walk, I also talked about the one-time having a positive impact and the license sales, etc. having a–third party costs having a downward impact on margins. They are different.
Vivek Gedda: Got it, thanks a lot.
Operator: Thank you. The next question is from the line of Abhishek Kumar from JM Financial. Please go ahead.
Abhishek Kumar: Yes, hi. Good evening. Thanks for taking my question. I was also trying to reconstruct this quarter’s growth. It seems to me there was a volume decline, just going by the headcount decline and small increase in the utilization, so is it the realization which has helped us or some of the one-time which you mentioned, and [indiscernible] this question was also, or is that some of the smaller deals, like the less than $50 million which you don’t disclose, the uptick on those deals or kind of inflow of those deals has kind of dried up significantly, which is basically resulting in mega deals needed to kind of sustain the volume growth?
Salil Parekh: In my opening remarks, I said we are continuing to see softness in the underlying volumes, and the revenue for the quarter was supported by stronger growth in the balanced portfolio and improved realization from one-timers.
Abhishek Kumar: Okay, so my question also was while I know we don’t give the numbers out, but the contribution of the less than $50 million deals in our revenue contribution or pipeline, how has that changed? The reason why I’m asking is it seems that without the mega deal or large deal ramping up, there is sustained pressure on margins, and with deals bigger, it’s a bit difficult to define when really these deals will ramp up, so in the absence of that, the contribution of smaller deals, has that really kind of changed as a proportion of revenue over the last few quarters?
Nilanjan Roy: We don’t give out this information.
Abhishek Kumar: Sure, okay. Thanks to you, and all the best.
Operator: Thank you. The next question is from the line of Apurva Prasad HDFC Securities. Please go ahead.
Apurva Prasad: Thanks for taking my question. Salil, I have a question on the headcount, which how should we really think about that progressing over the next few quarters. It’s been down 5% over the past three quarters with utilizations that have been flat, so how should we expect that to play?
Salil Parekh: Yes, so you have to triangulate across volume, attrition, new hiring and utilization. I mean, the broad message is that even with the utilization increase today to 81.8, we still have headroom to improve the utilization further, so that should give you a sense of things to come. Of course, we continue to monitor overall volumes, etc., so there is enough headroom and this is helping us in margins, like I said at the beginning, right, which is a margin lever which can you use.
Apurva Prasad: Right, [indiscernible]. Secondly, any vertical call-out in the one-timer and revenue that [indiscernible] earlier?
Salil Parekh: No.
Nilanjan Roy: Apurva, do you have any other questions?
Operator: Apurva, your line is muted, I guess. Do you have any other follow-up questions? There seems to be no response from the line participants. Ladies and gentlemen, that would be our last question for today. I now hand the conference back to the management for their closing remarks. Thank you, and over to you.
Salil Parekh: Thanks everyone – this is Salil. Thank you for all your questions and the interactions. I just want to close on a few points. First, we had an incredible quarter in large and mega deals, really, with $7.7 billion, the largest we’ve seen in the company for a quarter, and this gives us a good foundation for the future. The quarter itself was great in terms of sequential growth and operating margin. We’ve got a comprehensive program on margin expansion which is in place with several large components and tracks running across the company, and we continue to invest in generative AI, where we’re making great connects with clients, especially leveraging Topaz. Those really are the main points from us. Thanks very much again for joining in for the call.
Operator: Thank you very much, members of management. Ladies and gentlemen, on behalf of Infosys, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.
