Thierry Delaporte: That’s — so the first question, I would say is, the growth is broad-based, right? It’s not like there’s been a one account bump or anything. It’s broad-based, okay? So, your first question is — here is my answer. The second one is, the pull — what we call the pull-through, right, consulting should lead to — it’s not always easy to track, but you can expect easily 5x to 6x the consulting business. That’s what we are seeing with a lot of the projects we sign. And then, the reason why I’m — it’s difficult to answer, Girish, is because there’s an evolution of an account development strategy over time. And so, when you look at the cycle — life cycle of an account development, there will be time where there will be a larger component of consulting. In some moment, there’s going to be a smaller versus the different type of services. And that — we are observing this. But the pull-through is significant, that’s for sure.
Girish Pai: Okay. Thank you.
Operator: Thank you. We have our next question from the line of Sudheer Guntupalli from Kotak Mahindra Asset Management. Please go ahead.
Sudheer Guntupalli: Yeah, thanks. Hi, Thierry. Just one question. So, growth in Q3 ended up towards the higher end of our guidance band. And you’re calling out green shoots of recovery in consulting segment. Historically, March quarter has not been so bad for us in terms of seasonality. And after multiple quarters of revenue weakness, our base looks mathematically favorable. So, in that backdrop, I’m little perplexed on how to reconcile the lower-end of our guidance band at around 1.5% decline. So, are we being a little conservative here to keep buffer for any potential shocks, or is there any revenue impact due to the restructuring of the low-margin business that we spoke about?
Thierry Delaporte: Sudheer, this is the nature of our guidance, to give a bracket, so that they are — because the reality is that we are still in a market where there’s no things are happening and up and down and this — we need to see how this quarter turns, but I think this guidance is sharing a, I would say, cautious level of optimism.
Sudheer Guntupalli: Got it, Thierry. No, I was just surprised as to the lower-end here implies that same kind of number that we did in December quarter, which is typically very weak seasonally and this time around almost everybody is seeing higher-than-expected furloughs. So, I was just trying to understand how you arrived at that base case scenario. Is there anything specific that you’re looking at? Or just it’s a wide band that you wanted to keep?
Thierry Delaporte: Well, if I’m not wrong, Sudheer, actually, the lower end of our guidance equal the top end of the guidance of the previous quarter. So, it shows a trend.
Sudheer Guntupalli: Thierry, got it. Thank you so much. All the best.
Thierry Delaporte: Thank you.
Operator: Thank you. We have our next question from the line of Abhishek Kumar from JM Financial. Please go ahead.
Abhishek Kumar: Hi. Thanks for taking my question. Thierry, last few quarters, our growth has been challenged by some of the project cancellation, leakages, et cetera. Now, as you say that there are signs of stabilization, is the leakage kind of reduced to a level where the incoming revenue from all the deals we have won has started to kind of exceed what is leaking out, and therefore, incrementally, there should be growth. Is that kind of the right understanding?
Thierry Delaporte: If we look at our performance on bookings, therefore, our ability to close deals in the market, it continues to be rather good, okay? So, the sales performance has never stopped to be pretty good. I mean, the performance for the last three quarters — we know that through those performance in sales, in particular with significant volume of large deals, this will definitely increase our backlog for the quarters to come, okay? What was hurting our growth was the discretionary spend. So, typically, the smaller type of projects, but which in large volume was contributing to revenue growth. In this context, that’s why you’ve seen that indeed we’ve not being able to show growth over the last quarters. We are seeing a little bit of a — probably it’s significant, I would say, and I don’t know how to say it, either an end of the discretionary spend or actually a slight pickup of the discretionary spend, but that’s where we are seeing a little bit of inversion of the trend for sure.
Abhishek Kumar: Great. That’s helpful. And maybe next question is on margin. Maybe on medium term, we have done a tremendous job in protecting our margin despite kind of revenue erosion. So, as growth comes back, how are we looking at or how should we look at margins over the medium term? Should we go back to maybe pre-Capco kind of margin levels? Any color on margin trajectory over the medium term would be helpful. Thank you.
Thierry Delaporte: I’ll reflect a little bit on your question, and then I’ll ask Aparna to build on or to take this point more specifically. What I would say is that, for sure, it was important to us to show that through our actions around efficiency, productivity, automation, process improvements, all of that deep, deep activity inside the organization, the objective was to build a certain level of resilience of our margin profile. And indeed, we have launched these actions a few years ago at a time where we didn’t know the market would slow down. Actually, this market slowdown has been the proof point that our resiliency has improved tremendously over the last quarters. Indeed, you say it, despite the slowdowns, despite the lack of growth, despite salary increase, MSI to our employees, we’ve been able to hold our margin. So, it gives certainly a certain level of confidence that with the growth, we’ll be able to [imagine] (ph) expansion. Aparna?
