This is towards the employees severabce cost and is one-off in nature, and that is how you should model it.
Dipesh Mehta: So is it now over from Q3 onwards this line item will not be there or do you expect it to recur?
Aparna Iyer: So we’re not calling out for any particular guidance on this. We have said that it was one-off in nature. We will need to take into account what is shifting and what’s changing in our business. If there is more update, we will share it with you in the next quarter.
Operator: We have a next question from the line of Abhishek Kumar from JM Financial.
Abhishek Kumar: Thierry, you mentioned that you expect in the next couple of quarters, things to look up. I was just wondering what is driving your confidence? Are we seeing that the runoff of discretionary projects that we have witnessed over the last couple of quarters, is that coming to an end or you expect general demand to improve going forward?
Thierry Delaporte: I’ll try to to address it, staying within our policy in terms of guidance. So one is, certainly, the guidance for Q3 includes a certain volume of follows, let’s be clear, bigger than it was the previous year, right? It’s a fact, which we don’t necessarily expect to repeat for sure. Second is the fact that quarter-after-quarter with our level of TCV, we continue to build the backlog of deals. So there’s a bigger proportion of our revenue that gets covered by contract, if you like, for the quarters to come. So we are staying certainly cautious. And as you know, we are not guiding beyond this quarter, but it feels that we can reasonably expect a rebound to come after.
Abhishek Kumar: Just one follow-up, maybe. So on order backlog, you mentioned — so while we are winning deals or inflow is good. At the same time, there is a depletion of current book of business. So I mean I know we don’t give that number, but any color in terms of how the order backlog has improved over the past few quarters, given these two movement in the different direction?
Thierry Delaporte: Well, Abhishek, one, the type of deals includes a bigger proportion of larger dealers than before, okay, which will trigger a bigger stickiness in these accounts going forward, no doubt. Second, the varying nature of those larger deals tend to be more strategic. Third, the type of deals. Looking at our portfolio, we’ve done a lot of work over the last quarters to continue the rotation of our portfolio, more technology-based around data, around security, around cloud, and this is what’s — and engineering, and this is what’s happening. So I would say the nature of these deals has certainly continued to evolve. There’s a greater attention to cost rationalization, therefore, producing business case, delivering outcomes, those are typically what we are seeing in the deals that we are closing.
And I would say also we are seeing a good volume of deals of clients working on the consolidation of their providers where we are seeing opportunities to expand our position in these accounts.
Operator: Mr. Abhishek Kumar, does that answer your question?
Abhishek Kumar: Yes.
Operator: We have a next question from the line of Girish Pai from Nirmal Bang Equities.
Girish Pai: Thierry, how would you characterize the mood of clients, would you say they seem more optimistic or pessimistic compared to, say, when you tracked with them three months back or six months back. That’s question number one.
Thierry Delaporte: If I understood well, Girish, you asked me to characterize the mood of the market of the clients?
Girish Pai: Mood of clients, right.
