Wipro Ltd (WIT) 2025 Q2 法說會逐字稿

Welcome everyone to Wipro's Kodathi Campus.

For those of us who are joining virtually, good morning, good afternoon, good evening.

We will begin the press conference for Wipro's second quarter earnings.

I am Nisha Chandrashekharan.

I'm part of the External Coms team and I'll be your moderator for today.

Joining me on stage is our Chief Financial Officer, Aparna Iyer; our Chief Executive Officer and Managing Director, Srini Pallia; and our Chief Human Resources Officer; Saurabh Govil.

As usual, we will begin with the opening remarks from our CEO followed by a financial review from our CFO.

Post that we'll open the floor for your questions.

With that, let me hand over to our CEO and Managing Director, Srini Pallia.

Hello, everyone.

It's good to see you again.

This is my third meeting with you all and thank you for joining me and my leadership team for our second quarter results of the financial year 2024-'25.

In Quarter two, we met our expectations for revenue bookings and margins.

The long term potential of our business is strong and we are prepared to handle the current economic uncertainties that all of us see.

We continue to focus on our five strategic priorities and building a strong talent pool to capture AI opportunities.

Now, let me go the financial highlights for the quarter and share some insights on our markets and industry sectors.

By the way, all the revenue growth numbers I share will be in constant currency.

Our IT services revenue for quarter two was $2.66 billion, reflecting a sequential growth of 0.6%.

This brings us closer to the upper end of our guidance.

Our operating margin came in at 16.8%, which is an expansion of 35 basis points quarter on quarter and 71 basis points year on year.

And in terms of total bookings, we ended the quarter at $3.6 billion, which is an increase of 8.4% quarter on quarter.

Our Capco business continued to see traction and it grew 3.2% quarter on quarter and 6.9% year on year.

Now coming to our strategic market unit performance.

We saw sequential growth in three of the four markets in quarter two.

Americas 1 achieved a sequential growth of 1.2% driven by good performance in health care, technology, and communication sectors.

Americas 2 also recorded sequential growth of 0.8% supported by robust demand and strong execution in BFSI sector.

APMEA grew by 0.3% driven by traction in Capco.

And we are seeing early signs of this business stabilizing.

Europe registered a sequential decline of 0.1% due to overall weak demand and some client specific issues in few accounts.

Among industry sectors, we experienced varied performance.

Let me start with Capco.

With a strong account mining and traction in Capco business, BFSI continued accelerate delivering 2.7% sequential growth.

This was -- this growth was led by Americas and additionally, we are seeing momentum in both APMEA and Europe.

This clearly marks the third consecutive quarter of growth in BFSI.

Technology and communications grew by 1.6% sequentially driven by the ramp up of a recent large deal and momentum in existing relationships.

However, manufacturing remained soft for us, with a sequential decline of 2%.

We are seeing good progress with our consulting led industry solutions specifically in the automotive manufacturing segment.

And in addition, there are also signs of uptick in demand in the industrial segment.

We will focus on converting this into wins to revive growth in manufacturing.

Energy and utilities also remain weak with a sequential decline of 3.7%.

However, we see opportunities for us in vendor consolidation on cost takeout particularly in the energy sector.

As you all remember from the last two quarters, we identified five strategic priority areas for growth.

We have advanced in all five areas and I'd like to take this opportunity to share some indicators of our progress in quarter two.

One, we stayed focused on growing our large accounts in our four profitable markets and six priority sectors and we will continue to invest in them for expansion and growth.

In quarter two, our top account grew 4%, sequentially.

Top five accounts grew 6.2% sequentially, and top 10 accounts grew 3.7% sequentially, reflecting our focus on expanding our footprint and scaling our large accounts.

Large deals, of course are crucial for our growth.

During the quarter, we booked 19 large deals with a TCV of $1.489 million, which is close to $1.5 billion.

This translates to a growth of 29% sequentially and 16.8% on a year on year basis.

It's encouraging to see this the diversity in our large winds across sectors.

In fact, the deals we won cover a variety of themes from cost reduction and vendor consolidation to application, modernization, and cloud operations.

In fact, we are leading these deals with industry and cross industry solutions, which are consulting LED and AI powered.

Let me briefly talk about the two large deals that we won in Quarter two.

One, a leading transportation logistics company has selected Wipro to drive a business critical SAP S/4HANA transformation program.

In fact, this win involved collaboration between all our consulting arms, rising, designing, and Capco.

In fact, it highlights our industry knowledge and our ability to deliver customized solutions to our clients.

In the second example, a software technology company has selected us to support its product development and it operations end to end.

This is a total outsourcing deal where Wipro will consolidate vendors, take our engineering applications, infrastructure, and operations for this client.

Additionally, we will implement Gen AI powered solution to solve their business challenges and deliver operational efficiencies.

It's very important to highlight that one of these deals involves a new client while the other marks are transitioned from having a very minimal presence to becoming a strategic partner.

Now let me talk about another strategic priority, which is building talent at scale.

We believe all our employees should adopt an AI mindset, have the right skill set and use the right tool set in their work for all our clients.

In previous quarters, I discussed our investments in reskilling our workforce for AI opportunities.

In fact, we are now trained and certified over 44,000 employees on Advanced AI.

And also we have a significant number of employees actively using AI developer tools across the company for all our clients.

In addition, we are developing talent closely aligned with our clients' business needs.

For this, we have established account specific academies to upskill employees, providing a clear road map for building capabilities relevant to both industry and the technology context of our clients.

And before I share our guidance for the next quarter, I want to thank all my colleagues for their amazing support.

As an organization, we grow by listening actively to feedback from our employees.

In fact, in August, we conducted our annual employee engagement survey.

And in addition, I have made it a priority to connect with employees wherever I go.

And we have taken specific actions based on their feedback.

As most of you are aware, we implemented merit salary increase effective September 1, just nine months after the last cycle demonstrating our ongoing commitment to our employees.

In fact, last month, we hosted a leadership summit in Bangalore where our TOP 300 leaders from across the globe gathered right here to reflect on our business and chart our future direction.

In fact, it was very encouraging to see that we have come together as Team Wipro and there's a strong commitment to driving client success.

I hope to harness this momentum and continue moving forward together.

Now, on to guidance.

Our quarter three revenue is expected to be affected by seasonal furloughs and fewer working days this quarter.

And as a result, we are guiding a sequential revenue growth of minus 2% to 0% in constant currency.

Despite softness in revenue, in Q3, we are confident of maintaining our margin in a narrow band.

And with that, let me turn it over to Aparna for a detailed overview of our financials.

Thank you very much.

Thank you, Srini.

Good evening, ladies and gentlemen.

Let me share a quick update on our financial performance for the quarter before we open it up for Q&A.

On the IT services revenue for Q2, we deliver a sequential growth of 1.3% QoQ in reported currency terms and a growth of 0.6% in constant currency terms.

This is closer to the upper end of the guidance range that we had laid out last quarter.

We are pleased to share that our operating margin for the quarter was at 16.8%.

An expansion of 35 basis points quarter on quarter and an expansion of 71 basis points year on year.

This brings us one step closer to the band that we had laid out a few quarters ago of 17% to 17.5%.

This expansion in margins was achieved on the back of operational improvements and after absorbing one month of salary increases for our associates that we rolled out in September.

This was done within the nine -- of our earlier increase.

We begin Q3 with headwinds of furlough and fewer working days that Srini alluded to, yet we remain confident of holding our margins in a narrow band.

Our net income grew 21.3% year on year on the back of higher operating profits, which grew 11.4% year on year.

Our EPS at 6.14% grew 6.8% sequentially.

Q2 was yet another quarter of very strong cash flows.

Our operating cash flows of nearly $510 million in Q2 is at 132.3% of our net income.

With this, we've added cumulatively nearly $1 billion in the first half of this financial year.

At the end of Q2 '25 our investments and cash balance on our balance sheet stands at $6.2 billion.

Let me cover some other key metrices.

Our other income, net of the finance expenses grew by 34.2% sequential.

Our accounting yield of the average investments held in India was at 7.9% and the growth in other income was also because of higher investable surplus.

Our ETR for Q2 is that 24.6% versus 24% in the last quarter.

Our hedges continue -- sorry versus 24% in Q4 of '24, it was 24.5% last quarter.

Our hedges continue to be in line with our policy.

We had about $2.8 billion of foreign exchange derivative contracts as hedges at the end of Q2.

Finally, before I move to guidance, I would like to share with you that are -- that in our recently concluded Board Meeting, the Board of Directors have recommended an issue of bonus shares in the ratio of 1:1, which is subject to the shareholders approval.

Additionally, we are working through a revised capital allocation policy in line with our strategy and hopefully we'll be able to share it with all of you the next time we meet after our January Board Meeting.

In terms of our guidance to reiterate what Srini had shared, we expect the revenues from our IT services business segment to be in the range of $2.607 billion to $2.660 billion.

This translates to a sequential guidance of minus 2% to 0% in constant currency terms.

With that, I turn it over to Nisha for Q&A.

Thank you, Aparna.

Now we will begin with the question-answer-session.

(Event Instructions)

Haripriya?

Hi, Haripriya Suresh, Reuters.

Couple of questions from my end.

First, just to get some broad color on the segments.

In terms of I know you've called out some BFSI recovery.

Just to get some color on where the growth is coming from.

Do you see the sustaining?

Is it still in cost takeout?

Is discretionary coming back at all?

That's my first one.

Two, you've been calling out a growth in Capco for the three quarters you've mentioned plus one of your predecessor as well.

So that's four quarters of calling out Capco growth, but why is that not translating into your numbers because we continue seeing that decline, I think YoY if I am not wrong is about 4.5%.

You mentioned a client specific issue, is that a score production, what's the change over there?

And one clarification?

I know there was a Headcount correction.

We just want to understand what the basis of that was.

Yeah, thank you.

Thank you, Haripriya.

Let me give you a color on the growth and the discretionary spend.

From our vantage point, the discretionary spend has remained constant what it was like last quarter, nothing much has changed.

But if you look at -- from our perspective and the fact that I called out that three out of the four SMU'S showed a sequential growth.

And of course, you had a question on Euro.

All I can say is that, in Americas for us, across the industries, we are seeing momentum, okay?

And that reflects in our pipeline, which is very important and it's secular across industries including manufacturing and energy and nutrition within Americas.

APMEA you've seen that we got a growth and I'm seeing a good pipeline there as well and we got obviously convert those pipeline into revenues sooner than later.

Coming to Europe specifically -- now, if look at Capco as a business, which is growing, it's actually -- earlier, typically it is to be in UK and US.

But Capco now started growing in APMEA.

It started growing in Latin American countries as well, which is very good because while the BFSI sector globally is coming up, but Capco leading as a tip of the spear and our engagement is becoming more consulting led is a very positive one when it comes to competitive landscape.

In terms of Europe, like I said, Europe, if you look at it in general as a market, it's slowing down and you hear that commentary across.

For us, specifically, in addition to that, we had a couple of accounts, I did mention last quarter too, which had an impact and the pipeline today continues to be good there.

All we need to do is focus on converting that.

Thank you.

So on the head count one, there was an error in one of our entities when we looked at it, so we have corrected.

It's a very minor thing.

The trend for the head count doesn't change, what you've seen.

So there is nothing major but you want to call it out because there was a slight

--

Rishab.

Rishab, Moneycontrol.

Srini, first one is for you.

The guidance is minus 2% to 0%.

In Hiker analogy, I would like to ask whether we have reached AMS or in FY26 what do you expect?

On the American market side, as you pointed out, that BFSI is doing well there.

So is this in discretionary spend that we are looking at or what is it?

On the headcount side to Saurabh.

Head count decreased, attrition has increased and utilization has decreased.

So how do we read into this?

Are we ready when demand comes back?

Another question is on the fresher edition of the batch of 2022.

Your comments on that.

And another one on to Srini on the GCCs one, your drivers have said that they are working in various sectors as in financial services and others.

So what's your take on that on that?

Thanks.

Sure, Thanks, Rishab.

Can I go from GCCs, upwards.

That's okay with you?

As far as GCCs are concerned, it's our strategy that we want to partner with them clearly, and all of us know that GCCs is growing quite a bit in India at this point in time.

And this is very secular across industries.

Our strategy and our plan is to work with these clients and help them to actually grow the GCCs for them both on the innovation side, technology side, and also run and operate side.

So clearly, that's very important for us.

Now coming to BFSI segment, specifically in the context of discretionary spend.

I would like to say that if it's consulting led -- Capco led, it must be discretionary spend.

So in the BFSI segment, to some extent, we are seeing that aspect coming back.

But it's not -- I'm not seeing that change in other sectors at this point in time.

So clearly in the US and also in across the globe, for us, in the BFSI segment, to some extent, consulting led discretion spend is actually helping.

Now, coming to the first question last, right?

In terms of the hiker analogy for guidance.

While you're hiking, there will be ups and downs.

So you got to plan your hike accordingly based on that.

One of the things that we do is run the first mile and then last last mile will be very difficult.

But yes, the guidance specifically reflects what a call out and I called out as well.

One is number of working days is actually much more less relatively, second is furloughs, which typically happens for us in quarter three and third, to some extent Europe, I think the question that you anyway asked.

So let me -- you asked me three questions on utilization and freshers.

So let me speak on the freshers first.

So as we had called out earlier from this fiscal, from Q1 onwards, we are onboarding freshers.

We had done it in Q1, we done it in Q2, and every quarter between 2,500 to 3,000 freshers will be onboarded.

Second question in the past has been added.

Asked is that what the backlog of the offers we had made by end of this current quarter Q3, we will make sure there's no backlog of any of the offers made, all will be taken care of.

So that's on the head count.

Head count, overall, have you seen small but gradually you're seeing a positive thing over the last two quarters or alternate head count.

In terms of utilization, apart from what Srini called out, in terms of less working days and furloughs, we are very clearly looking at gearing ourselves for future demand.

And there are specific areas where we invested and hired people so that we are ready as and when demand comes.

So that's the way to look at it from a utilization standpoint.

Any additional questions?

Can you pass the mic to Haripriya, please?

Sorry.

One more question, I want to get -- I know that I'm looking at your capital location and I know you have a lot of cash and cash balances and I know that you mentioned previously that you are looking at organic growth.

I mean, what is that?

Is that still the plan?

Do you want to go for more acquisitions?

What's the plan there?

So, as I shared, we will be sharing a revised capital allocation policy in -- after our January Board meeting.

This will coincide with the time that we complete our strategy plan for the next two to three years.

It also coincides with the time when we typically give out our dividends.

For now, we have announced a bonus -- an issue of bonus.

To your point on M&A, yes, we have enough cash balances to pursue M&A that fits into our business strategy.

We have called out that there are specific markets and specific technology areas that we remain interested in and our preference is to do tuck in, but we can never rule out, right.

So we are actively looking and if something fits our strategy, it will certainly be something that we will pursue.

Just to add, Haripriya.

If our M&A's strategic advantage for growth, we'll go for that.

Shilpa, you can go.

Hi.

Shilpa, Times of India.

Sir, if you can help us understand, there's a lot of buzz around Gen AI.

What is the conversion like from POCs to actual revenues?

Can you give us some flavor around that?

How many such projects are mainstreamed?

And the other thing is last time you do an analogy as to how it's an uphill climb ahead.

From a strategic priority standpoint, if you can talk about the acceleration in your large deals pipeline, was there a reset on some of the aspects of the large deals teams that you have already incorporated?

Can you give us some color on that?

Sure, Shilpa.

I thought this collar mic will work.

It doesn't.

So let me answer the Gen AI question first, the way we look at it.

We want to be AI powered Wipro and I talked about this mindset, skill set, and the tool set.

Now, going to specifically to your question in terms of proof of concepts, going into production and so on and so forth.

There are three categories of AI projects that we do.

One, it's AI led projects, two, AI infused projects and programs and three, AI Powered solutions, right?

So those are the three categories.

AI powered solutions are mostly industry and cross industry led, which is prepackaged because the whole conceptualization happens with Gen AI as a core.

Okay.

Now you do AI infusion when you already have a let's say, managed services around the process or an infrastructure or an application, which has been ongoing.

But you want to improve the customer experience, employee experience, productivity benefits, operational improvement, so on and so forth, then you infuse Gen AI, right?

When I say AI led projects, for example, whether it's a software development life cycle or whether it's to do product engineering, you start thinking about how can I start working on AI projects?

It could be like the point I mentioned AI developer tool.

So these are the three categories of projects and programs that we do, Shilpa.

Now what happened -- coming back to the production in terms of the number.

If you ask me quarter on quarter, I keep track that metric.

I don't know whether I'm ready to announce that.

But all I can tell you is that significant number of POCs have gone into production.

When I say that it's both on the projects and also on the managed services, right?

And how do you monetize it?

How do it's an industry thing that's going on?

But if you ask me, am I excited with Gen AI?

All I can tell you is I'm more excited.

That's Gen AI for you.

And it's moving very fast.

Second part you asked is about large deals, right?

If you look at our large deals this -- like I mentioned $1.5 billion.

I think highest in the last 10 quarters that we have won and this is very secular, like I said, across markets, across industries.

I think, what's important in any large deal is about being first top priorities, being proactive with the client, understanding the business needs and the technology needs then solutioning it with the latest technologies.

One of them is obviously Gen AI.

And if you already have a standard industry and cross industry solution that actually will accelerate implementation for the client, that can be a competitive advantage.

I hope the competition is not listening to what I'm saying.

That's our differentiation.

I hope I'm not telling you too many things, but that's where we are focused on, Shilpa.

And it's like a hike like you said, right?

It's one step at a time we keep going.

One deal at a time.

The more you win, the more you learn, the more you can reuse for the new deals that are coming in.

Like the comfort of the client will be a lot more because you can actually demonstrate.

You can walk the talk -- really hike, not just talk about hiking.

Sir one last question on GCCs as a follow up to the Rishab's question, if you just look at the number.

You can call me Srini.

Yeah.

The number of BFSI GCCs coming to India, the numbers have gone up significantly existing ones, Deutsche Bank, Lloyds, Wells Fargo, you name a bank, they're all hiring in hundreds and thousands.

Just look at the number of centers that are being set up.

They are doing -- you say you're partnering with them, it's BOT GCCs in the box, you take a model, they are there.

So do you see that a serious competition?

They are chipping at your heels.

It companies are losing revenue because of GCCs.

How do you see that evolving?

What is your strategy beyond the BOT?

Once you transfer it to them, they're on their own.

See, one is the BOT opportunity that you talked about, Shilpa.

But what happens is it also depends upon the objective of the clients because sometimes the clients make the GCCs as part of their global implementation.

So the decision making rights happen right here.

There are some places where the additional rights actually happen out there and the flow through comes out here.

So each GCC is different.

Now, coming to each of the segment, what we have got some 1,400 to 1,500 GCCs right now, every week, a lot more, right?

Haripriya is saying up-up and go, yeah.

And so they're adding so many per week.

That's why I'm not.

Thank you, Haripriya.

That's why I'm not quoting how many per week.

But you know, if we are prepared to partner with them, not just on the BOT, but there are so many projects and it's not -- the talent is there.

And if you look at an organization like Wipro, like I talked about Gen AI, we have trained 230,000 employees of Wipro.

We have 44,000 advanced Gen AI in the team, we have is which [IAS Power], which is Gen AI based career advancement tool.

So we have the talent and we can groom the talent and GCCs and us can partner helping them to execute projects.

So I see that a -- win-win for both of us.

Samir, you can go.

Hello sir.

Samir, ET.

Just wanted to know from you like is the churn and restructuring over Wipro and the company is all set for the growth plan.

Second is you spoke about the opportunity like vendor consolidation cost, takeout deal in energy sector.

So can you throw some more color on that?

And to, Aparna, just one question is, can you tell -- give some color about the net gas situation in the company?

Okay.

Number one when I came in, for my first -- Samir, hope you can hear me?

When I came in first, what did -- I did want to repeat what I said, we called out five strategic priorities and we're going to stay focused on that.

I told you that I'll give you an update quarter on quarter and I did this this quarter, right?

Number one.

Number two, I said we are not going to change the structures.

We're going to have four SMUs and four GBLs and that has remained constant and it will be remain constant.

However, I also said that leadership and people will continue to evolve.

All I can promise you is that I'll stay on all these three factors, Samir.

Okay.

I'll leave it there?

Now, coming to vendor consolidation and cost reduction, right?

I called out energy sector because based upon the opportunities that we see.

Typically cost reduction and vendor consolidation sometimes go hand in hand and sometimes there are two parallel tracks.

But when it comes to vendor consolidation, typically when the client sees us.

So a couple of deals that I talked about there has been vendor consolidation, I clearly talked about.

They are -- they want to leverage Wipro as a competitive advantage for them on their -- not only on the operation efficiency but their client experience.

And we are bringing those technologies, tools, and Gen AI and so on and so forth, right.

So I'm seeing those opportunities coming in.

So it's not a vendor consolidation just for the cost, but also for the operational efficiencies and experiences.

And thereby getting a cost reduction.

Some clients call it as cost transformation, right?

But whatever said and done at the end of the day, it is what it is and I think you get it, Samir.

Net cash.

Our net cash is at about $4.3 billion.

We have debt of about $1.9 billion.

Yes, well, I don't know if it's highest ever but it is reasonably, it's perhaps in the recent quarters.

It's been -- it's a high, it's a recent high.

Yes.

Aishwarya, you can go.

Evening, Srini.

I'm Aishwarya, Business Line.

A couple of questions, the margin growth has remained flat.

When do you expect this to improve?

And what other tailwinds do you have?

Can you repeat your last question?

Could you repeat the first question, Aishwarya?

Margin growth has remained flat?

When do you expect it to improve?

And the tailwinds.

I'll request to Aparna to answer to that question.

So our margins have been consistently improving actually.

So I'm not sure why you're saying our margin growth is being flat.

If you look at it, we were 16.1% same time last year and right now it's 16.8%.

And like I said, our operating profits have also grown on a year on year basis at 11.2% and our net income has grown 21.3%.

Did I get the question wrong?

Yes.

So yes.

So I think it's been a consistent improvement in our trajectory, like I said, 71 basis points year on year.

And in fact, on a backdrop of a really muted revenue environment and our margin improvement this quarter is actually very encouraging because this is done after absorbing one month of salary increase and is fully operationally driven.

So we are very, very encouraged to see our margin performance.

The tailwinds, but?

Tailwinds for margins?

For the next quarter.

So we actually start Q3 with a couple of headwinds.

We have furloughs, fewer working days that impacts our revenues.

We also have two incremental months of salary increases that we will have to make up for.

What we have said is we are confident of holding it in a narrow band despite these headwinds.

Over a long term, we still have the same traditional levers that we usually talk of.

We have to sustain the utilization and offshoring.

We have a lot of good work to still be done in improving our fixed price productivity and pyramids and also there is one lever that we've been working on, it's paid off.

But there is still we think an optimization of our G&A that we have done.

So I do think that these are levers that are available in the short to medium term over a long term.

Of course, the improved revenue environment will also help in moving our margins up substantially.

Do we have any last questions?

Ayanthi, please go ahead, please.

Hi, just small one.

In addition to what Shilpa

--

Could you please mention your name?

Ayanthi, Financial Express.

Just an additional question to what Shilpa asked about the large deals.

You said it's highest in the last 10 quarters $1.5 billion.

Is the growth largely from the BFSI sector and or any other color you want to give on that?

It's very secular across markets and across industries.

The two examples I gave today the top two deals.

They're not from financial services.

I think the mic is not switched on.

Sorry, Shilpa.

I think -- there it is.

So how do you build more predictability in your hike cycle?

You moved from July to September.

So it's all getting pushed out.

So I just wanted to understand because that will give employees the visibility on how they plan their careers, right?

So I just want to and also the number of promotions.

Can you call that out and will the ESOP will be expanded as part of the allocation policy also going forward to reward high performance?

So I'll come on all three questions.

First of all, I think it's important that you are right that we must have predictability.

Unfortunately, last year was a unique business cycle and hence we had to take delay.

But as we come in -- as you heard in a tough environment, we continue to do it in a nine month period.

So it's so that we spend one full year and wait for one year and before we get the salary increase.

But this will be a norm for us.

September is the norm for us to look at a cycle going forward.

On promotions, we have continue to do our promotions

--

(multiple speakers) thank you, before the holiday season.

On the promotions, we continue to, we did it across the entire period even in a tough cycle every quarter.

And that that's happening as planned.

I don't know the exact numbers right now, but it's a normal process, which is happening every quarter.

So that's going on, the senior bans happen once a quarter and that also happened which we had called out to you.

On the ESOP and allocation policy, she's working on the allocation policy for shareholders, not for the employees.

We will have to work on that, but principally our philosophy on equity has been very different.

It is about few at the top and more deep and for us it is more cash.

So that's how we have done it over the years.

I don't think so.

We are looking at changing that policy per se on this one.

Can you take the question from Jyothi?

Hi, I'm Jyothi from Business Line.

So with US Fed cutting rate, do you think that you will be seeing better budgets for the next FY?

Jyothi, very difficult to predict, how the Fed behaves, how the rates behave, how the inflation behaves, how the geopolitical behave.

And the big elephant in the room is elections, right?

So I'm not a financial analyst but all, like I said, I see good momentum.

Thank you, everyone.

We will have to conclude our Q2 FY25 earnings press conference.

For any follow up questions, please reach out to the media relations team.

We'll be very happy to help you.

Thank you and we'll see you soon.