Release Date: October 10, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Negative Points
Q & A Highlights
Q: Could you elaborate on the demand environment and whether it has deteriorated after a couple of promising quarters? A: The demand continues to focus on cost optimization, with discretionary spend remaining stable. BFSI in North America has shown improvement, and while there are client-specific challenges in life sciences and healthcare, the overall environment is similar to the previous quarter. - K. Krithivasan, CEO
Q: Can you provide more details on the financial services segment and the manufacturing sector's concerns? A: In BFSI, banking and insurance are showing growth, while capital markets are weaker. Manufacturing is facing short-term supply chain and labor issues, but the long-term outlook remains strong due to a healthy order book. - K. Krithivasan, CEO
Q: How should we think about growth visibility beyond the current calendar, especially in the absence of mega deals? A: The TCV is within our comfort range, and the pipeline is strong across geographies and industries. While mega deals are absent, the pipeline remains robust, indicating potential for growth acceleration. - K. Krithivasan, CEO
Q: What is the impact of the BSNL deal on revenue and margins, and how will it affect future quarters? A: The BSNL deal is currently at its peak, and we expect it to taper down after a quarter. This will impact both revenue and margins, with potential margin tailwinds in the fourth quarter. - Samir Seksaria, CFO
Q: How is the GenAI pipeline converting to bookings and revenue, and what is its impact on margins? A: GenAI engagements have doubled, with 86 projects going into production this quarter. While many projects are small, some larger, long-term projects are emerging. We aim to reach our 26-28% margin target as soon as possible. - K. Krithivasan, CEO and Samir Seksaria, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.