Salil Parekh: Thanks, Moshe. This is Salil. On the budgets, we have seen, first, as we saw our Q3 end of the year quarter, the furloughs were in play. We’re seeing that coming into play in the Q1 calendar year so our Q4. The budget decisions are ongoing. And as you know, well, these will go through the early part of this month, so nothing from that. But we don’t see any change in what we were seeing in terms of behavior from the last quarter where budgets would suddenly have a different direction. So at this stage, it looks like it’s similar to what we were seeing, but everything is not yet closed out from our discussions on the budgets.
Moshe Katri: Understood. And then looking at the deal flow, the large deal flow that went through calendar ’23. There are some concerns that they’re not converting, some of these are not converting on a timely basis. Has that changed in any way in terms of conversion some of these deals? And when we could start seeing that inflection point in revenue growth because of those deals converting? Thanks a lot.
Salil Parekh: On that, the way we see the revenue flowing — again, as you remember, the large deals obviously giving us the foundation, especially the net new and renewal for future revenue. And at the same time, we’re also seeing impact where the digital programs are not moving or digital programs sometimes are being stopped. So that combination is what gives that revenue outcome. At this stage, we have no specific sort of external view on what will happen in the quarter, but our overall revenue guidance for this financial year, which is only one more quarter gives you a sense (ph) of how we are feeling about that. We will see — because a lot of the large deals as they start to build up and when sort of the digital capabilities start to have a more sort of interest with clients, we will start to see that change, I’m sure.
Moshe Katri: Thanks, Salil.
Operator: Thank you. The next question is from the line of Ankur Rudra from JPMorgan Chase. Please go ahead.
Ankur Rudra: Hi. Thank you. Salil, could you elaborate on what you’ve seen with client spending sentiment has been, a, on projects that have already been signed, let’s say, in the last nine months or so on the cost takeout side; and b, on incremental signing of smaller projects because we can see our large projects where we don’t have a visibility on how your small projects are doing?
Salil Parekh: Sure. So on the client spending, where clients have signed recently in the last three, six, nine months that spending is going well, both on cost and other projects, incremental projects as you were describing. On things that were more in the past that behavior on the cost has continued and the incremental projects we have seen even in the past quarter some impact. But what has been signed recently, we see those proceeding as per what they have signed.
Ankur Rudra: Understood. And I mean I think you’ve mentioned several times on the call that there seems to be delays in revenue recognition because of project reprioritization. Is there a way of maybe estimating this for our — for investors benefit, like, for example, how much of fiscal ’23 or the last two years, total contract value or signings may have been impacted because of change in client priorities or alternatively, how much of the signings have been shrinking every quarter, there’s one back with new project signings for you to stay at the same place?
Salil Parekh: So we are not in a position to share that externally. We have a view on what we look at in terms of wins, execution and large deals internally. There are also other programs, some small, some mid-sizes which go up and down. And so that whole internal competition is something which we work with, but it’s not something which we have — in the past are going, even today sharing externally.
Ankur Rudra: Understand. I wanted to color it as opposed to maybe a quantification.
Salil Parekh: Yeah. So same, I think at this stage, the outcome is what we have. We’ve not given any more on that in terms of color as well, Ankur.
Ankur Rudra: Understood. Maybe moving to margins, just one question. Obviously, this quarter, if I take out the impact of the ransomware incident, it appears that margins would have been up by 60 basis points. Is that right? Number one. Number two, if you could elaborate where we are on the various Project Maximus levers and where is the remaining support, let’s say, over the next year or so?
Nilanjan Roy: Yeah. So we’ve given the margin walk in the initial script, and quite clear about the one-offs, the salary, etc. From an overall Maximus, like I said, there are a lot of tracks which are currently in play. Utilization is one you’re seeing, in fact, that’s the biggest one, straight up in your metrics, you can see that and how that’s flowing into margins. There are other internal, of course, programs on the pyramid, a lot of work there on-site, offshore is the first time we’ve seen some positive movement after a lot of quarters. On automation and GenAI, a lot of work going on with GenAI coming in these additional sort of levers available to us more than the traditional automation which we used to do. Pricing has been much better.
There’s a lot of work happening on value-based selling. And in fact, that’s also reflected overall RPP that we are seeing a much more stable pricing — underlying pricing regime, and that’s something which we are pushing on. So I think all the levers are in play. We have quarters where we are able to squeeze more and many new ideas, I think with Project Maximus, which have come into the fray as well looking at large programs and whether we can early on get into a margin improvement program rather than what was originally budgeted during the bid phase. So there’s a lot of stuff happening, and I think we’re already seeing the early results.
Ankur Rudra: A quick follow-up, if I can. There’s some concern that some of the cost takeout contracts, one in the last nine months may drive some margin headwinds. Is that something that should impact on a portfolio basis next year?
Nilanjan Roy: That’s something we’ve always talked about. We have a portfolio of contracts in the first, second, third, fourth, fifth year, right? So there are — while new contracts come in, which are initially potentially at lower margins, at the same time, we have contracts which have been going into a steady state. Some of these questions were raised two, three years back in one of our segments as well. And you’ve seen the improvement in that segment, particularly over the period of time where it’s nearly closer to the average margin for the company. So that’s something which is – something which we’ve really fine-tuned and mastered over the few years. So in that sense, that’s always built into our projections and forecasts.
Ankur Rudra: Appreciate the color. Thank you and best of luck.
Nilanjan Roy: Thank you.
