Gaurav Rateria: Got it. Last question is on the margins. Given that you will have some bit of more headwind in fourth quarter because there will be a full three month impact of the wages that you have provided for in this quarter, your margins probably will have some more headwinds plus your implied guidance points to sort of again weak revenue trajectory in the fourth quarter also. So no major massive operating leverage per se. It’s just that you’re exiting the year with margins closer to the lower end of the guide. Is that the bottom for the margins and given the Project Maximus is underway, from here on the margin should only be going in the upward direction. Is that the way to look for it? I’m not specifically looking for fiscal ’25, but just trying to understand is that the bottom for the margin. Thank you.
Nilanjan Roy: Yeah. So in Q4, I mean it will work out of Q3 as well and there are puts and takes in Q3. And like we’ve said, Project Maximus continues to deliver very strongly. And in our overall commentary, we’ve talked about the optimism in the medium term for our margins coming out of Maximus.
Gaurav Rateria: Thank you.
Operator: Thank you. Next question is from the line of Sandeep Shah from Equirus Securities. Please go ahead.
Sandeep Shah: Yeah. Thanks. Thanks for the opportunity. Most of the questions have been answered. Just wanted to understand the 60 bps impact on cybersecurity, is it possible to break down in terms of revenue and cost? And is it fair to assume the impact which could have been there because of the cost will actually no longer be there, it would be a tailwind in the fourth quarter?
Nilanjan Roy: Yeah. I think firstly, we won’t – can’t split it, but both these are one-time impacts, right, the loss of revenue and the cost impact. So this was like the puts and takes. So this is going to — in Q4 as we see it now, there’s not going to be there.
Sandeep Shah: Okay. So even the revenue will come back in the fourth quarter, right?
Nilanjan Roy: Yeah. So I think in the statement, you have seen that the systems are back substantially by the end of December, right, the system is up and running. So I think that part goes away.
Sandeep Shah: Okay. And Nilanjan, for two months of wage hike, 60 bps to 70 bps wage impact looks slightly lower. So is it the almost 100% of the eligible employees have been covered? And is it fair to assume the wage impact would be much lower in the fourth quarter because it would be one month impact?
Nilanjan Roy: Going to be a one month impact, absolutely. And every time we do a wage hike, we look at, of course, the competitive scenario, we look at the market, attrition, employees tenure, what are the pay point grids. So it’s a very complex exercise. And based on this, we think what we have rolled out. And of course, you can see the attrition figures are also good.
Sandeep Shah: Okay. And last question, Salil, I think one of the responses, you said the furloughs in the December quarter may continue in the March quarter. Is it — I have heard correctly or I have been mistaken.
Salil Parekh: So there, what we saw is the – my point was on more Q3, we had the furloughs, and that is a seasonal impact. In Q4, we typically see a little bit of that always in our business in Australia, and that’s really the reference I was making.
Sandeep Shah: Okay. Thanks and all the best, and all the best Nilanjan.
Nilanjan Roy: Thank you.
Operator: Thank you. The next question is from the line of Kawaljeet Saluja from Kotak. Please go ahead.
Kawaljeet Saluja: Hey. Hi. My question is for Nilanjan. Nilanjan, the margins for this quarter, is it based on your normal variable compensation provision or is that something which has taken a hit in this quarter?
Nilanjan Roy: Yeah. So Kawal, we don’t talk about the variable pay, of course. I think it’s the next few — there will be no news in the papers about that, but we don’t give any commentary on variable pay.
Kawaljeet Saluja: Yeah. I mean I think it will make its way to the media after a month, so might as I talk about it now Nilanjan.
Nilanjan Roy: We never confirm at any case.
Kawaljeet Saluja: Okay. Got that. All the best in future endeavors, Nilanjan.
Nilanjan Roy: Thanks, Kawal.
Operator: Thank you. Next question is from the line of Manik Taneja from Axis Capital. Please go ahead.
Manik Taneja: Thank you for the opportunity. Just wanted to understand over the course of last nine months to 12 months, the industry has been complaining about the leakage on the existing projects as well as non-extension of [indiscernible] projects. Are you seeing any change on that front? That’s question number one. The second question was with regards to the expansion in terms of captive centers, and we continue to see news flow on that front. Any comments from you on that front?
