Operator: Sorry to interrupt. Mr. Taneja, it looks like there’s an audio breaks from your connection. If you are on a handsfree mode, please switch to handset and speak, and you might have to repeat the question, sir.
Manik Taneja: Sure. I am on handset only and I’ll repeat that question. So the question was on margins. over the course of last 18, 24 months we see transition in our margins because of the investments that we made around are — around our delivery in terms of — especially in terms of pressures as well as some of the acquisitions that we made. So now given the fact that growth actually slowing down and hiring essentially is coming off, is there a time line that you can — you would want to essentially suggest as to us getting back to 18%, 19% EBIT margins?
Jatin Dalal: Okay. So Manik, thanks for your question. And as you can see, we have made a substantive move on margin in quarter 3. Certainly, we will protect this base and make an incremental effort for future. But right now, I don’t think we should go ahead and quantify the quarter or year in which we’ll reach a particular threshold. Our effort clearly as we articulated in past also, is that we will — these are not the margin we are satisfied with, from a medium-term standpoint, and our trajectory for our goal for medium term is higher and we’ll continue to make an effort. But please be mindful that in quarter 3, we have made significant movements, and we’ll have to sustain that and on that build it incrementally in next quarters.
Operator: Our next question is from the line of Abhishek Shindadkar from Capital.
Unidentified Analyst: Thierry, in the prepared remarks, you mentioned about modest slowdown in the discretionary spend, was this comment related to Capco by any chance? And given the fact that you have a solid U. K. European presence. One of your competitors had highlighted that H1 could see some of the deals delayed deals could convert in the first half. Anything that you would like to comment on the same? When I was referring about 2 discretionary spend, Abhishek, I was not referring to any units specifically. It’s that applies to all kind of discretionary spend. As you mentioned, Capco, let me tell you one thing. The acquisition of Capco that we’ve done when it was at now 18 months ago, was an extremely strategic acquisition.
The purpose of this acquisition was to game changers for us in the BFSI market, be able to suddenly completely transform the type of conversation that we’re having with clients in order to be able to really engage with them at a strategic level and drive larger program. This is exactly what has happened. The performance of Capco quarter-after-quarter over the last 18 months has been very good, actually higher than what we had anticipated or expected at the time of the acquisition and that the nature of the strategic nature of the acquisition is a reality on the ground every day. So that’s €“ I just wanted to be clear about this €“ the since you mentioned it. As for our discretionary spend, I think it’s €“ the type of deals that the clients feel they can stop at any moment in time.
And this happened with every kind of clients across sectors €“ thank We’ll take the next question from the line of Dipesh Mehta from Emkay Global.
