Q1 21/22

Jul 15, 2021

Ladies and gentlemen, good day and welcome to Wipro Limited Q1 FY 2022 Earnings Conference Call. As a reminder, all participants' lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Ms. Aparna Iyer, Vice President and Corporate Treasurer. Thank you and over to you, Ms. Iyer. Thank you, Markit. A very warm welcome to our Q1 FY 'twenty two earnings call. We will begin the call with business highlights and overview by Thierry Delafo, Before we start, let me draw your attention to the fact that during this call, we may make certain forward looking statements within the meaning of the Private Securities Litigation Reform Act 1995. These statements are based on management's current expectations The uncertainties and risk factors are explained in our detailed filings with the SEC. Vipro does not undertake any obligation to update the forward looking statements to Palmer, thank you. So hello, everyone. Thank you for Joining us today, those of you joining in from India, many of you may be coming out of a very difficult period during the And with all humility and hope, believe the future holds better days for everyone around the world. This is not an expense that we can write off lightly. Many of our colleagues And the loved ones have experienced grief, stress, suffering. Over the past 15 months, Wipro has stepped up in every way possible to support those affected. Our COVID task force led by Saurabh and our CEO, Sanjeev, I've done everything possible for our colleagues. We ramped up efforts around oxygen provisioning, COVID testing. We established isolation centers in many Indian cities. We partnered With hospitals and managed hospital admissions or many of our employees who are stationed on-site with Family members in India, Wipro's task force has managed their specialization and care of their family. Globally, we are continuing to offer COVID care sick leaves and enhanced medical insurance coverage. Unfortunately, we lost some of our colleagues to the virus during the 2nd wave. In some cases, where the spouse of Such an employee has sold jobs with us. We have treated it as a priority, and we've offered them a relevant role in Wipro. And we recognize the emotional toll on people. So mental health resources are being made available for our colleagues around the world. Presently, about 56% of our employees in India are vaccinated, and we will continue to provide vaccination facility in our campuses. But more broadly for our community, we continue to operate a dedicated COVID hospital in our Pune campus, Which has treated almost 6,000 patients so far, providing some relief to the city. The small things that we were able to do has gone a long way to bring relief. For leading us through this extraordinary time, I want to thank my leadership team for steering our people in our business And every one of our employees for being such strong custodians of the spirit of Wipro and for giving us the best. This has definitely made Wipro a stronger, more resilient, more dependable company than ever before. This actually reflects in our results in the last few quarters and also in what I hear from customers. They say they are seeing a more innovative mindset and operational agility from Wipro's team. Clearly, our new business strategy, simplified operating model and bold approach is starting to pay off. Our Q1 performance, therefore, continues to show considerable expansion and volumes and buoyancy. Our revenue growth trajectory has continued to show sharp improvements, bookings have remained healthy And our execution showed a remarkable perseverance. Let me share now some specifics. Our revenue growth during the quarter was 12.2% in reported terms and 12% on constant currency terms, which It's well ahead of the top end of our guidance range, both on an overall basis and excluding capital. This translates into a 21.3% year on year growth in constant currency terms. Not only is this the best ever quarterly result, Q1 also saw us report the highest Organic sequential growth that we've delivered in 38 quarters. This tremendous growth It was really led by strong volumes across almost all markets, across all sectors and service offerings. Our billable headcount addition during the quarter, therefore, was the strongest ever. Revenues from our latest acquisition, Capco, Mr. Della Pote, this is the operator. We can't hear your audio, sir, at the moment. Ladies and gentlemen, we would request you to please stay connected while we check the line for the management. Ladies and gentlemen, thank you for patiently waiting. We have Mr. Piero de la Porte reconnected. Over to you, sir. Thank you very much. So sorry to all of you. No, I've heard that I lost you actually a couple of seconds before I realized it. So I'm going back to The specifics. So first is our revenue growth. During the quarter, it was 12.2% in reported terms, 12% on constant currency terms, which is well ahead of the top end of our guidance range, both on an overall basis, but also excluding Capco. This translates into a 21.3% year on year growth in constant currency terms. Not only is this the best ever quarterly result, Q1 also saw us report the highest organic sequential growth that we have delivered in 38 This tremendous growth was led by strong volumes across almost all sectors, all markets And service offerings. Our billable headcount addition during the quarter, therefore, was the strongest ever. Revenues from our latest acquisition, Capco, was also ahead of their guidance. Now looking at the environment, the demand environment is robust and the quality of our overall pipeline is better than before. Our gross channel addition during the quarter was strong, and we continue to increase our participation in deals in the marketplace. We closed 8 last years, resulting in a TCV of over $715,000,000 Surely, All markets are witnessing solid demand, but in the Americas 1 market, large deal wins were exceptionally strong. At this point, we are seeing a good mix of large, medium sized and smaller deals. At the announcement of acquisition of Cavco, we have shared with you that the long term sustainable operating margin band post The dilution of capital was to be between 17% and 17.5%. During the quarter, we have delivered margins Well above that range at 18.8 percent after consolidating 2 months of capco results and Significantly investing in talent and supply chain. We have added over 12,000 employees on a net basis, which is 80% of what we've added in all of last financial year and the highest in the last decade. Now Let me add some color to the underlying business performance. All numbers are in constant currency for ease of reference. There is significant traction across all our markets and our growth is broad based. The top 3 markets grew double digits On a year on year basis, even without Capco, in Americas 1, we grew 18% year on year. Most of the sectors have seen strong traction with health and consumer verticals leading from the front. In Americas too, we grew 24% year on year, driven by a strong volume increase. CAPCO, you see, has further elevated this performance. The demand in the BFSI sector has remained strong Across all service offerings this quarter, the high-tech business grew by 26 percent year on year, while our manufacturing business is making a recovery slowly. Our European business has delivered a year on year growth of 32.5 percent on the back of several large deal wins as well as the Capco acquisition. UK, Southern Europe and Germany led this growth. Our apnea market grew moderately at 0.8% year on year, And we are now seeing improved environment in Australia, New Zealand and Southeast Asia. The pipeline in these markets are healthy and growing. From a service offering standpoint, our IVS global business line grew by 18.3% quarter over quarter And 25.3 percent year on year. Most of the sub practices showed a healthy growth. We are seeing increased demand in new age offerings like cloud transformation. The shift to cloud is unmistakable. We announced a number of cloud related wins in different industries and geographies in the last few months. And to further our growth and commitment to clients At hyperscaler partners, we will be making a significant announcement about our cloud business in the coming weeks, which I encourage you to look out for. Our Icore global business line grew by 3.7% sequentially And 15.9% year on year. Both of our large scale practices, infrastructure services and Digital operations grew in double digits on a year on year basis. Our Top ten customers grew 13.4% Q on Q and 17.9% year on year in constant currency terms. We added 2 customers to the over $100,000,000 account category and 2 new customers in the over $50,000,000 Now let me give you a sense of the kind of deals we are winning. 1st, We secured a multiyear, multimillion dollar contract this quarter from a U. S.-based healthcare company to consolidate their entire on premise and Infrastructure operations as well as end user services using intelligent automation. The consolidation will create attractive opportunities to streamline operations, enhance user experience And ease the application portfolio migration to cloud by using a digital first approach. 2nd, a leading European automobile manufacturer, as the world leaders, a contract to Transform and modernize their Internet and cloud security access so they can meet the requirements of remote working. Our solution will provide protection from advanced cyber threats, enhance security compliance, Protect corporate data leaks, reduce cost and provide scalability. Another example, a leading U. S.-based Distributor of Plumbing Supplies has selected Wipro to support their cloud transformation journey by Embedding quality engineering in the development lifecycle, encompassing CRM implementation, Data migration and legacy applications. Additionally, we provide managed services for cloud ERP, Covering multiple business functions and resulting in improved business agility and customer experience across more than 1400 store locations. As most of you will know, we completed our acquisition Capco, the end of April 2021, over the last 2 months, we have made sure that they are gradually inducted into Wipro And start to feel at home. While these are early days, obviously, we continue to build good momentum on our joint go to market efforts. Not surprisingly, the synergy pipeline is shaping well and we have started seeing some early wins. For example, We had the joint consulting win with a leading global payments provider, where we will create a migration framework For 950 regional banks and merchants to move to a new digital platform for debit cards, we'll continue to announce More such wins for sure. And finally, on to our outlook for the next quarter. We have guided for revenue growth of 5% to 7%. Even at the lower end of this guidance, we will cross the 10,000,000,000 Annual run rate of revenues, which we are very excited about. While we don't guide for full year, you know that, The Q1 performance and the Q2 guidance sets us up for well ahead of double digit growth for the full year, even excluding Cavco. While sharing with you our new strategy last year, I had said that Talent will be a critical success factor. This pandemic has overturned several notions of how Organizations traditionally approached talent engagement and development. The dramatic shift to a remote working environment has made labor across all sectors and markets more mobile and liberated. Therefore, higher attrition has become a universal issue. Wipro acknowledges this And he's adapting quickly. We have doubled down on increasing intake from campuses across the world as well as re skilling our existing workforce. We will onboard 33% more fresh shares in FY 2022 versus the previous year. We also intend to onboard 6,000 fresh shares in Q2 itself. Growth is our priority We will ensure that talent supply is not a constraint to our ambition. In the short term, we will experience Some inflationary pressure in people costs. We've announced a salary hike for 80% of our employees effective September 1, The 2nd hike in this calendar year. Now to summarize, we are pleased with the sharp improvement in our growth trajectory, And we are optimistic about building on that momentum in the remaining quarters of the financial year. On that note, Let me hand over to Jatin for his comments on the financials. Jatin, over to you. Thank you, Thierry. Good evening, ladies and gentlemen. Thank you for joining our call. I'll summarize the financial performance. We have grown 25.7% in reported terms from Q1 of last year. Our operating margin 30 basis points lower at 18.8 compared to Q1 of last year. We had a certain closure of audit In our taxation matters in quarter 1, whereby our tax rate for quarter 1 is 16.1%. Overall, our net income grew 35% and our EPS grew 41%. Let me talk about cash flows. We have managed the quarter well from DSO standpoint. We have improved it by 7 days To deliver a DS of 68 days in quarter 1, that has helped us deliver operating cash flow at 104% of our net income and free cash flow at 90% of our net income. We had $4,100,000,000 gross of net cash at the end of quarter 1 and $2,600,000,000 of cash net of debt at the end of quarter 1. I will now speak about our ForEx performance. We had a good realization of $74,750,000,000 in quarter 1. We have $3,400,000,000 of hedges at the end of quarter 1. As Thierry mentioned, we have guided for 5% to 7% sequential growth in the currencies that are mentioned on our press release. We'll be very happy to take your questions from here. Thank you. Thank you very much. We will now begin the question and answer Ladies and gentlemen, we will wait for a moment while the questions being assembled. The first question is from the line of Sudhir Guntupalli from ICICI Securities. Please go ahead. Yes. Good evening, gentlemen. Thanks for giving me the opportunity. Congrats on a good quarter. My first question, Thierry, on the Health BU, across the top 5 Indian companies with Europe, I have set the strongest footprint in Healthcare vertical even before the onset of COVID. And over the last 4 to 5 quarters, this vertical has been doing quite well for most other players given the ad hoc work Companies have been doing in areas like contact tracing applications or vaccine logistics management, etcetera, etcetera. However, for Wipro, this vertical has been quite soft Over the previous several quarters, including the current one, any color on this as to why this is the case and what is the outlook going forward? When we were looking at the performance in sales for the quarter, It turns out that the one of the best performing quarter in sales has been the healthcare sector. So I think we have A nice position. We are showing a little lower growth than some other sectors, it's clear. In revenue, 2.6% Growth quarter over quarter, it's 10% growth year on year from our Health business. There's a nice improvement in America, in particular. So I think our ambition remains the same. We'll continue to invest in this It's one of our strategic sectors and we'll continue to get stronger in this sector. But we are back into growth mode in healthcare. Sure, Puneet. And my second question, if I looked at the guidance, excluding the impact of CAPCO and Ampeon, Growth guidance for the September quarter may likely be in the range of 1% to 3% in constant currency terms. This appears little muted, especially in the context the demand momentum we are talking about, any thoughts on this front? Are we being little conservative here or are we foreseeing some headwinds at this juncture? You're talking about Q2 now? Yes. Okay. No, no, we are not. No, no, we are not. We are not seeing any headwinds. Actually, we continue to grow well and we continue to perform well. And I don't I'm not sure your math is accurate, to be honest, frankly. I think Cavco will continue to grow. They Grown nicely in this quarter. They'll continue to grow the next quarter. But the what we call the business before Capco It's going to continue to grow well as well. So it's not going to be 1% to 3% growth the way you see it. It's going to be more. So, Jatin, any color on that? What would be the organic growth guidance for next quarter? So, Sudhir, we are not Breaking it out, but Thierry's commentary is accurate from the way we see it. We will we see strong traction both in capco as well as organic or Without capital numbers. And NPN is not even completed yet, Sudeep. We will complete it during the course of the quarter. Thanks, Sachin. That's it from my side. All the best. Thank you. The next question is from the line of Sandeep Agarwal from EDELWEISS. Please go ahead. Hi, good evening, Carrie, and congrats on an excellent quarter Sorry to interrupt you, Ms. Adhavan. Your voice is breaking up, sir. Can you hear me now, please? We can hear you, but your voice is not clear. It's breaking up. May I request you to move to a better reception area? Maybe it might help. Yes, sure. So now the voice should go better. It's better at the moment. You may go ahead. Yes. So clearly, I have a little strategy question and I'm not asking for a near term because we are seeing a big Turnaround in the industry. So I want to note 2 things. Since you have joined, what is the change in your Timeline of when you came in, how much proportion of your time you were spending in stabilizing the operation, Building the team, making the strategic changes, choosing the right path of growth and building customer delivery and experience Versus now, so how much of those time you have been able to curtail and start focusing on growth, Sales engine and marketing or you are still in the same you are spending your time in the same proportion as you were when you joined? That is number 1. So basically I want to understand that how much of the things have been stabilized since you have joined and how much more time you will take To stabilize before you start 100% focus on growth, growth and growth. That is number 1. And number 2, I wanted to know Is that we are in a situation where probably now our country is in a monopoly situation and What I mean by monopoly is single monopoly in fact where there is no competition virtually outside India to execute software services. Although there are few companies which are existing, but they are also dependent on manpower from India and very less proportion is outside India and is relatively Demand is chasing supply that is the reality which we are dealing with. So my question is why This open ended kind of guidance of double digit and I'm not asking for any specific guidance for any quarter or any year, But can you at least say that what you are seeing now for the next 2, 3 years is something which you would not have seen in last 10 years or 15 years? Least that kind of comfort do you have today or you would refrain from giving that comfort to the investors? Thanks a lot. Okay. Okay. So I'll come back to the point number 2, which is the outlook for growth for the next quarter, okay, outlook For growth next quarter. The first question was remind me because I forgot to write it down. What was your first question? Just me the two words and I'll go ahead. No, I just want to know the change in proportion of your time which you were expecting when you joined. Okay, okay, Okay. Yes, it's been a long day. So I've my memory is telling me. So Day 1, day 1 at Wipro, I've engaged with clients. So I've Never done anything else than focusing on growth from day 1. If I look at I think my timing and the way I'm focusing my time, I would say it's 30% of my time talking to So engaging directly with clients, 30% of my time, okay? 30% engaging with employees. And that's really On the people front, it's connecting with all sorts of groups about The strategy, it has much to share about the priorities, explain why to where we are going, what is our ambition and so on, but also get feedback from them. So really connect at every level. And I would say about 30%, 30%, 40%, 30% to Look at different aspects of operations. But that's not only operations, it's operations and strategy. And so it's looking at Opportunities like Capco and what are the strategic priorities for us and how do we Progress along these lines. So I've not to be honest, since your question seems to be about do you have time To focus on anything else in operations, I've never stopped focusing on the market and on our clients, and we are Growth obsessed inside the organization. Every time we have a meeting, we talk about clients, we talk about the growth, we talk about deals, This is what we are doing, okay? On your second question, outlook for the next Yes. What is very clear is that there is a strong demand, okay? It's a very good market for companies. It's time to take market share. It's time to grow. But it's for that, you need to really focus On the areas of interest for the client. So really the areas of high demand around cybersecurity, around Data around digital transformation, around cloud journey, all these topics are in high demand. And for sure, there's attrition here Because as you said, it's we are going after talent and we are in an environment where There's going to be a shortage in talent at some point in time. And so we are, I think, well positioned. We've Had a very good impact on in terms of attractiveness for The potential employees or people that we are hiring and will continue to do so, My view is that the market will continue to be good for the next quarters. I cannot predict for the next years, but I can certainly predict that for the next quarter, There is a very good perspective of growth and high demand because the companies, the clients From every sectors, every industry we are working with are driving transformation programs. They are investing in technology today. And so and I see it's very visible in connecting with our clients that they are engaged in significant transformation program. So definitely a promising market for the foreseeable future for us. Thanks a lot. Thanks for your time and wish you best of luck for the future quarter. Thank you. Thank you. Thank you. The next question is from the line of Nithin Sarmaranathan from Investec. Please go ahead. Yes. Hi, good evening, everyone. I had two questions. The first one is, how do we think about margins going forward? What do you think would be the puts and takes in terms of headwinds and tailwinds? This is a broad thought process there. And the second one is, If I look at the BSS or the Financial Services revenue, excluding CATCo, it looks almost flattish. I just wanted your thoughts on the underlying environment on the core business there? And second, any thoughts on the Energy and Nutrities Vertical in terms of what's driving the strength in that business. Okay. All right. So, a couple of questions. So, The first one is around your reading of the growth for the Q1. So in the Q1, after, Cavco will be part of the organization, but we are still Communicating on the contribution to the growth of Cavco in Q1. Of the 12.2% growth in reported terms delivered in Q1, 4.9% is organic, Okay. 4.9% quarter over quarter is the organic growth generated by Wipro before Capco, Okay. So it's a strong growth. Cavco's growth has been strong and therefore overall, It's a very strong growth, 12.2 percent reported terms, 21.3% in constant currency terms year on year. So this is For the growth itself. The margin profile, What we've said, it's probably I think we are very consistent. What we've said probably 3 to 4 quarters ago is We are going to drive a growth agenda, growth Strategy, but not to the expense of margins. We will protect and maintain the margins at Sustainable level that we have qualified between 19% and 19.5%. Then we've done the Capco acquisition. We've said that Capco would have a 2 points of margin impact on our Owen, and therefore, we are we consider that the margin around 17%, 17.5 It's going to be the level where we will be for the foreseeable future. We've done better this quarter, 18.8%, but it doesn't change The way we are seeing our margin profile, Jatin, you want to give more color to it? Thanks, Thierry. So, Nitin, the way we have looked at it and we always maintained it, Thierry also spoke about it, That growth remains a priority. And you have to appreciate that this is a year of opportunity for every player And certainly for us, and you've seen the growth that we delivered in quarter 4 and we have delivered in quarter 1. And we have to invest in people because that would be a key differentiator in the current market environment And we have done so. We gave salary increase for our junior staff on 1st January. We are going to give them once again a salary increase in 1st September. For our senior staff, we have given salary increase in 1st June, for which 2 months impact will come in quarter 2. So we will remain invested in the talent in this year to make sure that we capture the What market has to offer and we capture share. Having said that, there are definitely The levers that we will continue to leverage, Pyramid is 1 and you heard Saurabh talk about the kind of fresher addition that we are going to do. Certainly, offshoring is one big theme, which continues to play out quite well. 3rd is automation. 4th is productivity that we can drive, rotation that we can drive across organization on this scale, Leverage that operating leverage can play out in a growth scenario like this. So there are many levers that we remain very focused on And we'll continue to work on, but we will remain focused on revenue and we will make a fine balance With margin as we move forward. But our commentary on the medium term outlook, you heard from Thierry that's what We keep in mind, but as you have seen, quarter 1, we have delivered significantly more. Sure. That's helpful. So, would one expect that after the September Salary increases for 80% of the people. Similarly, it would be followed with For the senior management as well, mid level and senior beyond that. So So, what I'm trying to ask is, would it mean a full year kind of every quarter kind of salary increase impact versus we had in Jan and we had And the one in this quarter for mid level and senior, would we see a follow through similarly post September For the senior and mid in the next quarter as well, is that how one should think about it? No, the Sohrab here, the plan is not to give senior, is no plan for that. It will come now in the normal cycle, which is the annual cycle in the next fiscal for everybody. So after the second cycle, which we are doing in September now for the junior people, everybody will get into a normal cycle from next fiscal. Sure. That's helpful. My last question, which we missed was on the energy and utilities vertical and what's driving these things there? Thank you. Kiri, I'll go ahead and answer that. Okay. I was on mute. Sorry. Go ahead. Okay. No problem. So, Nitin, we are seeing good traction in the market for energy and utilities. And as the demand is coming back, the growth will remain a little lumpy. So I'm very happy with the performance That we have delivered for the current quarter, but I think it would remain lumpy. We have Prove it very well on a project and ramp that up, but it's not that we are seeing another sort of 11% growth Ping once again in quarter 2. So it would remain a little lumpy as we go forward. Yes, exactly. So that's what I was going to say. If you look at the energy and utility sector, We have a healthy business here. We have a good pipeline. The growth that shows that is seen here this quarter is Little bit exceptional and I don't think we will necessarily sustain it at this level going forward, but it's a good sector for us for sure. That's helpful. Thank you so much and all the best. Thank you. Thank you. The next question is from the line of Vibhor Singhal from Philip Capital. Please go ahead. Hi. Good evening, guys. Thanks for taking my question. So the 2 questions from my side. First, the theory, Just wanted to understand here that this year, of course, we've been doing great. The Q1 growth itself and the 2nd quarter guidance Ensure that we will be able to clock much higher than double digit growth rate on our organic basis also, CBP excludes the capital allocation. Just wanted to get your perspective on how sustainable do you think this growth momentum is In terms of large deals that we are facing, in terms of demand environment, I mean for long I think we had the low underperforming peers for quite a while in terms of growth rate. So given that this year, of course, we are coming off a low base of last year, which was impacted by pandemic. Within FY 2022 onwards and all, do you see enough demand environment for us to be able to at least be at par with our peers And can we give this growth momentum or do you believe given that the current environment that is in Europe is fierce and forced COVID-nineteen, There could be some slowdown as well. So I mean, you definitely can Assume that we'll continue to grow at the NICE space. If you look at again, if you look at the performance in Q1, It will be interesting to see how this compare with the competition. I believe we will be at the high end Of the growth sequential and year on year of In our industry, even excluding capital, okay? So that's for Q2, we continue to see the growth Being strong. And although I cannot tell and I will not guide for beyond that, but as we said, We know already that given where we're going, how things are going and so on, given the volume of opportunities in the pipeline, given The strength of our relationship with our clients given the quality of our solutions and capabilities, we know we will grow A solid nice double digit growth this year as well from your standpoint. So You can assume that we'll be showing growth for a good period of time. No, any concerns regarding further 4Q from the from your conversations with the client? Any kind of pushback that we might be getting? Sorry, your voice can muffled. I didn't hear. You said any concern around what? Sorry. My question was any concern that you might have come across from your conversation with clients Regarding the 3rd or 4th COVID wave and maybe clients are looking to just maybe wait and watch and then continue with their funding passcode. Yes. Okay. Okay. So your question was specific to COVID. Understood. So mean every country is going through its challenges and it's certainly been incredibly challenging For India, in particular, in Q1. And so trust me, we've delivered this performance despite Or in a very difficult context for India, as you know. I think our teams have been Incredibly resilient over the last 15 months and it showed ability to really deliver with no loss of productivity and very strong growth and strong And very strong growth and strong work and strong quality work to our clients. I think Whether we like it or not, there's a reality that our industry has learned, adapted And can work in the current environment pretty well. So not that it's my preferred option, I definitely prefer a world without COVID. But from a business standpoint, I think we can definitely continue to sustain growth despite a difficult Health environment. Sure. Great to hear that. Zafin, just one last question from my side. In terms of capital integration, I would assume that all the payments that are required to be made have been made. So just wanted to get your stance on we already having around $4,100,000,000 of cash And on top of that, we're raising $750,000,000 of bond as we recently did. So, I mean, what is the The company as to why are we doing this? Is it low cost of capital or preparing for some other purchase for something else? Just wanted to get your perspective on that. Sure. So this $4,100,000,000 of gross of net cash is after the $750,000,000 of bond Proceeds have come in. So it is inclusive. 2nd is, we did it because we wanted to keep a healthy mix Of date and internal approvals for our large acquisitions such as Capco, we have done it for Capco. And we should retain the flexibility on the balance sheet and that's the purpose. It is not created for Any specific purpose as in for some other active purpose or other Watches for a specific goal. It is something if you see historically also, you would see it on our balance sheet, the size of the cash and it is in line with that. The payments for the fab acquisitions have all been made? That is completed in quarter 1 completely. Thank you. Perfect. Sure. Great. Thank you so much guys. Wish you all the best. Thank you. Thank you. The next question is from the line of Dipesh Mehta from MK Global. Please go ahead. Yes. Thanks for the opportunity and congrats for strong integration. A few questions. First about, Keri, can you help us understand what led to this positive surprise, whether it is very broad based A few deals ramp up lead to some surprises. And on Capco, is there any seasonality or one off in this quarter or this is organic business growth which led to even bit on Capco side? 2nd question is on slightly medium term. Now we have seen services business remain largely linear. Now we are seeing very strong demand environment. We are seeing we can have some nonlinearity into business either through pricing construct or Maybe from automation or something, if you can provide some slightly medium term perspective, how you expect that linearity to play out over medium term? And third question is about India SRE business. Now we are seeing last few quarters of consistent Steady performance and substantial income earning profitability. So if you can provide some medium term outlook on profitability of India SRA Business? Thanks. Okay. I'm sorry, business, GEBCO seasonality, linearity of revenue. So on the Capco side, no, and the first question was really on our growth. Why such a strong performance on growth? So to your question, I can easily respond and clearly say, It's not coming from one off or one thing somewhere that has been having a big impact or One last deal or no? No, it's broad based. It's really across our strategic market units across our regions. We are seeing growth and demand and opportunities everywhere. So that's what gives us also confidence because it's not based on one splendid Win, it's many, many deals everywhere. So that is Solida. Capco, Capco seasonality. There will be a seasonality in Capco, But Ed's not actually playing in it's not playing in Q1. Q1 is a normal quarter. I don't think there is anything Particular, I think, capco being 50% in Europe, you know that traditionally summertime In Europe, it's a lot a little softer because it's vacation or summertime. But having said that, the trend and the growth and the opportunity showed by CAPCO team is strong as well. So I think it will continue, and it will continue to surprise us positively As we work and develop opportunities of synergies as well. Linearity of revenue, I think it's clear that there will be the way we can leverage platform, the way we can Raise price is the way we can leverage automation to create a slight disconnect between Growth and headcount evolution. But for the best part, my view is that there will be a Certain level of continuity of the linearity between those two parameters. So you should assume that growth Will be fueled by headcount growth as well for the best part. Last SRE business, I think the SRE business has been in a recovery mode for several quarters. It's doing well. I think it's Getting stronger and stronger. And so I think the work done by Sanjeev In the last years, now our CEO and the work done by KU is continue to reinforce our position in this market. We have also clarified our strategy and defined where we want to invest versus places where we no longer want to invest. And I think it's Making us more agile, more focused and probably more consistent as well for our clients. Jatin, anything you want to add around those points? I would have to say, Only a point I will add is, I wish while we have had good numbers in terms of profitability for Couple of last three quarters or so. From a modeling standpoint, you should continue to model And sort of a single digit positive margins for that business, which I think is very good outcome Given it is a SRE segment, we have as Thierry mentioned, we have been quite successful in completing some of our Long pending projects and that has given us a better outcome than what we originally anticipated. But I don't think We can say that this business is a 20% plus margin business. Thank you very much. Thank you. The next question is from the line of Prabhaljeet Seluja from Kotak. Please go ahead. Fabulous quarter, everyone. My question is that, Jatin, did the Capco acquisition have any influence on revenues from your top 5 or top 10 accounts? And the context of this question is that it's quite unusual and it's quite remarkable as well to have growth From top 10 accounts at around 13% sequentially. That just got me curious as to what's the incidence of Capco in the top 10 accounts. Kamaljit, that is right. There has been addition because of capital in some of our common customers and that has been reflected in top 10 performance. Thanks for that clarification, Jatin. Now my second question is around the global account executive structure. I remember that was a change made by Thierry in Jan. And that called for a Change also in profile of Google accounts executives. Now do you have the right profile of People that you wanted at that level? And if yes, when does one start seeing the benefits of this change into the numbers? Not to say that the numbers are not good, it's already good, but I'm just curious about that. Kavaljit, as theory responds to that and Saurabh, respond to that question. I want to just add one point to what I said that even if you take the aggregation of Cavco out, would like to clarify that the sequential growth is ahead of company growth rate on without capco basis in top 10 As well as on a Y o Y basis, it's a double digit number. So even without capco aggregation, the Growth momentum is quite robust. Jack, jump in. Yes. On the account executive Focus, you're absolutely right, Gaylejit. We have really invested a lot in Building strong account executives' roles inside the organization running our large accounts. We have hired many new account executives. We have spent time with our best Account executive to help them to get more accountability, but also more responsibility, more ability, more support. We have really restructured our model, our operating model, so that they become central to the Large account growth strategy. And it's definitely bearing fruit. I mean, even again, Excluding Capco, the large accounts are growing faster than the total company, and it's new. In the past, Typically, the large accounts were growing less than the growth of the company. And so That was something to be corrected. And we are seeing nice impact on the growth of these accounts After the organizational change and maybe the investments we've made into talent, senior talent. Thank you. All the best. Thank you. Thank you. The next question is from the line of Sumit Jain from Goldman Sachs. Please go ahead. Yes. Hi, gentlemen. Thanks for taking my question. So firstly, I wanted to understand in terms of your broad based growth, if I look at your industry verticals, the growth has come from media, telecom, retail and e and u. And if I exclude the Capco acquisition, Financial Services also had a pretty weak growth. And even we had a weak growth in healthcare and manufacturing and high-tech vertical. So just want to understand in terms of broad based growth, in what areas are you growing or let's say your TCB deal win of $750,000,000 with 8 large deal wins, In what industry verticals are these deals largely comprised of? So if you look at deals that we've closed in the quarter, clearly, the sector that Stands out in terms of performance have been the healthcare sector, also the consumer sector, I would say the BFSI sector, okay. If we are looking now at the revenue growth performance per sector, 23% BFSI now, of course, influenced by Cavco, but 14% Quarter on quarter from Consumer, 12% quarter on quarter from E and U, 12% from Communications. Those are very strong performance. Technology has been growing mildly 2.5%, but 14% year on year. So I would say, there's always room for doing better for sure. But I would say The growth profile has been good. The only sector that hasn't shown growth this quarter is the manufacturing sector, And we will resume growth in the next quarter. So that's really the view from a sector standpoint. Chetan, you want to add? No, Thierry. You're covered. Thank you. Okay. Yes. Thanks, Thierry, for that clarification. So maybe just a follow-up on your TCV deal wins. I think you mentioned $750,000,000 Can you give us some quarter on quarter or a Y o Y comparison how this deal wins behaved? So you know what's interesting is, we have a different profile on deals that what we've had over the last quarters. Over the last two quarters, we've had, we have had every time One megadeal. So obviously, the megadeal has a huge impact on the total. Now interestingly enough, if you look at the ACV performance, It's as strong as what we've done in the last two quarters, but we've done it with smaller deals. So We knew we were not geared up yet to have an engine that creates one deal per quarter. We haven't lost any large deal, by the way, this quarter. It's really That we have to build the pipeline for that and it's building up well, but it's going to take a bit of time. But the volume of deals In medium and large, medium and smaller size deals has been really good. So it's a different segmentation of Deals from the previous quarter, but overall in total amount and in order book Creation, if you like, it's actually been a solid performance. We've done better, significantly better than with the plan we had built For the quarter. That's very helpful, Thierry. And maybe last thing, I think in your guidance of 5% to 7%, given that we don't know When the Ampeon acquisition will get closed, can you split out the organic growth within this 5% to 7%? I'll take that. Sumit, since Caplo is becoming is part of Wipro now and Depending upon the customers where we play, the growth could come either from the main entity or from Cavco. I think our success lies in being 1 company and not breaking this out. So we shared this for quarter 1 because it's the Q1 of But going forward, we will give an aggregate number for growth. So I am unable to break that down from 5% to 7% standpoint. Thank you. Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to Ms. Aparna Iyer for closing comments. Thank you all for joining the call today. Thank you. On behalf of Repro Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.