Srinivas Pallia : Absolutely, Gaurav. I think there are two ways — two opportunity sets that we have with Capco. One is Capco going on its own, doing consulting work for them, which is a lot more a different buyer within that particular organization. But what we are focused on is the synergy deals with the Capco being the tip of the spear and helping us in the downstream because that is where we can actually win a lot more large deals and mega deals. Now using Capco, we have an advantage in terms of shaping the deal because you can be a lot more focused in the context of the customer process areas and the customer’s business problem that we are trying to solve and then put the downstream revenue, which could be either a cost transformation or it could be a business transformation, Gaurav.
Gaurav Rateria : And the recent success that you’ve seen in the last two quarters, is it more, again, on the synergy deals that you have seen things coming back? Or is it more independent work of Capco that has been seeing some success?
Aparna Iyer : It’s both Gaurav. Certainly, it is secular. We are seeing a secular uptick across the service offerings of Capco across geographies and it has led, it’s more broad-based. Also, we are winning good synergy deals and the collaboration has only increased in the last four quarters given the macroeconomic environment and the fact that the deals were harder to come by. We’ve certainly built a muscle on synergy also a lot better. Both are coming into play.
Gaurav Rateria : Last question from me, Aparna, how to look at the conversion of net income into operating cash flow on a sustainable basis? I know this has been a fantastic year for Wipro. But going forward, more on a sustainable basis, what should be the right way to look at it?
Aparna Iyer : If you look at just our historical performance, we’ve always been between what, like, 85% to 110% of free cash flow is what we generate as a percentage of net income. And that’s a good number to target. Yes, I think FY’24 was a very good year for us in terms of free cash flow generation and we’ll continue to work on all fronts.
Operator: We have a next question from the line of Kumar Rakesh from BNP Paribas.
Kumar Rakesh : My first question was Srini, you talked about large deal acceleration. While I understand that mega deals haven’t been around a lot but large deals performance have been quite fairly good over the last two years. From what used to be about $600 million on an average year years back, now you have been consistently doing about $1.1 billion of quarterly large deals, but that has not been reflecting into stronger growth. So when you talk about that you plan to work on large deal acceleration. What does that mean? And how should that translate into growth?
Srinivas Pallia : So a couple of things. One is, when I say large deal acceleration Kumar, the idea here is that, obviously, you’ve got to have a lot more deals in the pipeline. So there, again, I feel — my ask is that we have to be proactive on those large deals. What that means is can you shape the deal even before the deal comes out, right? And this you can obviously do with many of your large clients where you have a very strong relationships. So that’s number one. So second is the size of the deal and the frequency of the deals, if we can slightly increase that can give us momentum going forward. Now in terms of converting the large deal dealers TCVs to revenue, maybe I’ll ask Aparna to make a comment.
Aparna Iyer : So Rakesh, this is, again, something that I think not just us, but it’s just the nature of the market that the conversion is lower. It is because while we continue to win these deals and replenish the bucket. There is a discretionary spend environment, which is weighing on our revenue performance, right? So we are continuing to see ramp downs that are happening where existing projects finish but are not getting replenished at the same pace. So that is again weighing down in terms of the conversion from bookings to revenue. And I think that’s — I think the major aspect. Also, what has happened is while the momentum is much stronger on the large deals and the larger deals, the smaller deals buoyancy has certainly slowed down. And at least in the last four quarters, we’ve seen that. So that — those are two things that are weighing on the revenues.
Kumar Rakesh : My second question was around the number of clients less than 1 million. So for the last few quarters, we have been pruning or smaller accounts — smaller clients. But then in this quarter on a sequential basis it has increased. So is this one-off or there’s a change in strategy now how we are looking at the smaller accounts?
Aparna Iyer : There’s no change in strategy, Rakesh. I think we continue to — our strategy has only got more firm. We are looking for profitable growth. And we will continue to pivot ourselves in a few geographies where we are doing. We’re not in high-value transformative work that in new age opportunities that we want to be. We would like to pivot our service offerings. And in that context, we did take actions, especially in APMEA, as a case in point, I spoke about it. So what you’re seeing quarter-on-quarter can we manage it, there will be volatility that will play out quarter-on-quarter. But I can assure you there’s no fundamental shift in strategy. We will continue to focus on profitable growth and mine deeper.
Srinivas Pallia : So, Rakesh, just add two more points to that. One is I think it’s not just the number of accounts but the quality of accounts we have, which is very important for us going forward. Second is if you look at our — we have continued to add accounts in 100 — greater than $100 million bucket. In fact, we added three accounts in that particular bracket. So that’s another one, we want to keep tracking and keep moving.
Operator: We have a next question from the line of Yogesh Aggarwal from HSBC Securities and Capital Markets.
