Salil Parekh: The word we see it is we have both components of at least the two large components of our clients are looking for we have good industry-leading capability. So it’s really a function of a specific industry, if industry or a client will evolve, the position ourselves to make sure that we can support our clients in that area.
Sudheer Guntupalli: Sure. Thanks, Salil. All the best for the future.
Operator: Thank you. Our next question is from the line of Moshe Katri from Wedbush Securities. Please go ahead.
Moshe Katri: Hey, thank you. And happy new year, and congrats on strong execution in a pretty tough environment. I have a three-part question first, March guidance upgrades is pretty unusual from a seasonality perspective and given the macro concerns. So it seems like you have better visibility now. Can you share any views on the budget cycle itself, your kind of concern over slippages, maybe a month or 2, budget delays. Are you seeing any of that? Or you think the budgets will be awarded or finalized as on time this time?
Salil Parekh: Thanks, Moshe. This is Salil. On the budget, so far, we’ve seen in some clients and especially in the industries we’ve called out some areas where there has been slowness in deciding or some sort of changes, especially on some discretionary work. So we mentioned high-tech, for example, mortgages, a bank €“ investment banking. So all of those ones that we mentioned before. But we don’t see a broad base change. Equally, we do see good, let’s say, the area with the budgets moving ahead as in the past, with energy, utilities, manufacturing. So we’ve got like one answer that it’s a little bit by industry or sub industry somewhat different.
Moshe Katri: Understood. And then you €“ in the press conference, you mentioned that about third of your new €“ third of TCV came in from new logos. Can you remind us, is this within the range of what you’ve seen in the past in terms of mix of new logos versus renewals?
Salil Parekh: Sorry, referring the last deal, $3.3 billion that was 36% net new. That in the range where we do some quarters its lower, some quarters higher, but not €“ these numbers are not unusual.
Moshe Katri: Okay. And then the final question is for Nilanjan, when we met in Bangalore back in December, you pointed to pivot in the nature of the new deal flow towards, as we said, cost optimizations and your consolidation. Obviously, this is what you’re seeing. Are these deals typically less dependent on clients’ budgets given the fact that you’re kind of taking over a specific function with the objective of kind of reducing delivery costs? And is there any difference in profitability levels here in terms of these projects versus some of these projects that you’ve been doing in the past few years? Thank you.
Salil Parekh: So in that, I think the way you described it, these are not fully correlated with the budget of a client in many instances these are areas where given the evolving economic situation, clients are looking to reduce that tech spend across the enterprise, in many cases, use some of that savings to fund transformation programs. It sometimes was coupled with vendor consolidation. So let’s €“ there are clients you may have five or six vendors and when we benefit from the consolidation we see tremendous efficiency that can be created. Our automation tools become quite useful. We typically add automation on our ongoing programs, which gives an annual benefit. But when we see something of scale where we have not been involved earlier, we have an ability to provide a much greater benefit.
In aggregate, the profitability of these deals is within the range of the rest of our company and especially has been more and more over time, leverage the automation tools and our capabilities, we see these becoming stable high profit deals.
Moshe Katri: It’s very helpful. Thank you.
Operator: Thank you. Our next question is from the line of Pankaj Kapoor from CLSA. Please go ahead.
