Ladies and gentlemen, good day. Welcome to the Infosys earnings conference call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sandeep Mahindroo. Thank you. Over to you, sir. Thanks, Margaret. Hello, everyone, welcome to Infosys earnings call to discuss Q1 FY 2021 results. I'm Sandeep from the investor relations team in Bangalore. Joining us today on this call is CEO and MD, Mr. Salil Parekh, COO, Mr. Pravin Rao, CFO, Mr. Nilanjan Roy along with other members of senior management team. We'll start the call with some color on the performance of the company by Salil, Pravin, and Nilanjan before opening up the call for questions. Please note that anything that we say that refers to our outlook for the future is a forward-looking statement, which must be read in conjunction with the rest of the Company's filings. A complete statement and description of these risks is available in our filings with the SEC, which can be found on www.sec.gov. With that, I would now like to pass it on to Salil. Thanks, Sandeep. Good evening and good morning to everyone on the call. Thank you for joining us today. I trust each of you and your families are safe and well. I'm delighted to share with you that we've had a landmark first quarter with robust year-on-year growth of 16.9% and sequential growth of 4.8% in constant currency terms. This has been the fastest growth we have seen in 10 years. We continue to gain significant market share, with this growth being essentially organic and especially in the area of digital transformation. This is a clear reflection of Infosys' resilience and client relevance that has grown stronger with the unwavering commitments of our employees and our differentiated digital portfolio. I would like to thank all of our employees for their enormous dedication and contribution, especially during another testing period with the second COVID wave in India. Some of the highlights of our results are: Revenues were $3.878 billion, which is growth of 16.9% year-on-year and 4.8% sequentially in constant currency. Our digital business grew by 42% year-on-year and now constitutes 53.9% of our overall revenues. We have broad-based growth across all of our sectors, service lines, and geographies. Financial services grew by 22%, retail 22%, life sciences 21%, manufacturing 18%, the North American geography by 21%. Our large deals were at $2.6 billion. Large deals are deals over $50 million in value. Operating margins were strong at 23.7%. We had a tremendous focus on our employees, especially related to their well-being and to the new talent expansion approach that we have with employees. Free cash flow was strong at $863 million, 18.5% higher than the same quarter in the previous year. Attrition increased to 13.9%. We had a net headcount increase of 8,000, attracting leading talent from the market. We remain comfortable with our ability to support our clients in their digital transformation journey. Our sustained approach in building differentiated digital capabilities is helping us enable our clients to move with speed, becoming agile, and create value as they connect with their customers, employees, and partners with new digital constructs. For example, with the cloud becoming a strategic priority for businesses, more clients across industries are engaging with us to take advantage of Infosys' global solutions and services specialized on the cloud. With a strong start to the financial year, good large deals in Q1, strong pipeline, we are increasing our annual revenue growth guidance, which was at 12%-14%. We increased it to 14%-16% growth in constant currency. Our operating margin guidance remains unchanged at 22%-24%. Last week, Infosys completed 40 years. I'm delighted to share with you the vision of our founders and all the leaders that have helped shape the company are contributing to us being well-positioned for growth and being a strong and consistent partner to our clients in their digital transformation journey. I'd like to thank the founders, employees, clients, shareholders, and all our stakeholders for their ongoing guidance, support, and contribution. With that, let me turn it over to Pravin. Thank you, Salil. Hello, everyone. Hope you and your family are well, safe, and healthy. After a period of extremely concerning medical situation caused by the second wave of pandemic, India is gradually returning to normalcy. We have been extremely focused on employee wellbeing, extending every possible help to overcome any medical situation of our employees. We have ramped up vaccination drive for employees and their families, and so far, we have vaccinated 58% of our employees in India with at least one shot. We saw sustained growth acceleration in quarter one with year-on-year constant currency growth of 16.9%. Growth was broad-based with seven industry segments reporting strong double-digit growth, including the two largest, financial services and retail, growing more than 20% year-on-year. Operating parameters continued to improve during the quarter. Utilization improved further to a new all-time high of 88.5%. Onsite effort mix reduced further to a new low of 24.1%. However, subcon costs increased by 120 basis points due to stronger than expected growth, high attrition, and demand for niche skills. We won 22 large deals in quarter one, totaling $ 2.6 billion, nine in financial services, four each in retail and energy, utilities, resources and services, two in manufacturing, and one each in communications, high tech and life sciences segments. Region-wise, 14 were from America, five were from Europe, two from rest of the world, and one from India. The share of new deals in quarter one was 30%. Client metrics improved meaningfully with 100 million client count increasing to 34, an increase of nine year-on-year. We added 113 new clients in the last quarter. With growth coming back, demand for top talent has also increased. Voluntary last 12-month attrition increased from 10.9% last quarter to 13.9% in quarter one. However, we not only backfilled attrition completely, but also added another 8,300 employees on a net basis, which is a testimony to the strength of recruitment engine at Infosys and our status as a sought-after employer. We are taking all necessary measures to enhance employee value proposition and improve both talent acquisition and retention. However, we expect attrition to be high in the near term due to strong demand. In quarter one, we onboarded over 10,000 college graduates, and for the full year, we have increased the college graduate hiring target to 35,000 globally to ensure unconstrained client deliveries. As communicated earlier, the salary revision for fiscal 2022 will kick off from July for majority of our employees. Moving to business segments, industry-leading performance in financial services continued with steady increase in growth momentum, aided by signings during the quarter. Growth is led by U.S., especially in sub-segments like banking, mortgages, wealth and retirement services. With the gradual opening of the economy, we are also seeing significant improvement in the payment sector. There is visible acceleration in cloud adoption, and we are working with many of our clients on cloud migration, cloud management, and other cloud-related platform deals. With the combination of our domain, plus tech, plus ops, plus digital capabilities, we are well positioned as a full stack digital transformation player. Performance of the retail segment improved meaningfully with both new deal signings during the quarter, as well as ramp-ups of previous deal wins. We are seeing aggressive investments by clients to uplift their digital capabilities. There's a huge opportunity for us to help them build omni-channel capabilities to compete with the digital natives and right-size their cost structure. Clients continue to invest in analytics across supply chain, trade promotion, fulfillment, personalization, using new age tools that drive heavy analytics with a fraction of cost. Communication segment performance improved compared to the previous quarters due to combination of fresh signings and ramp-up of prior won deals. With COVID accelerating the need for better connectivity, we are seeing improving deployment of 5G across the world. We are working with our customers in advanced IoT use cases and products. Energy, utility, resources, and services vertical grew strong double digits, along with impressive deal wins during the quarter. The overall outlook is improving across sub-sectors and geographies we operate. Clients are slowly getting back to normalized levels of discretionary spending, especially in areas involving customer experience, operational efficiency, and associated legacy transformation. Cyber security is also becoming important with recent incidents in energy and utility segments. Growth in manufacturing segment was strong with tailwinds from deal wins in the past few quarters. Infosys grew market share through the pandemic across all sectors in automotive, aerospace, and industrial. We see emerging opportunities on various fronts in the ER&D space, resulting from increased spending on digital in areas like industrial IoT, cloud adoption, IT/OT integration, making the manufacturing value chain smarter and faster. As mentioned earlier, we expect Daimler deal to start ramping up in the weeks ahead. Life sciences segment also continues to grow at strong double-digit rates. Our recent offerings like personalized medicine solution for complex biotherapeutics, commercial insight platform to help drive commercial efficiencies, and digital health platform for patient engagement initiatives would help in accelerating digital adoption across pharma value chain. Share of digital to overall revenues increased further to 53.9% in Q1, with a very strong growth of 42.1% year-on-year in constant currency terms. There's a pent-up demand to restart delayed projects in addition to the continuation of the pandemic-related drive towards digital transformation of enterprise infrastructure and customer experience. Clients have recognized that some of the adoptions they have made to their business are going to be permanent, and they are increasing their investment in digital channels and associated products and tools. In the last quarter, Infosys was ranked as leader in 10 digital service-related capabilities across cloud services, modernization, artificial intelligence, and supply chain by industry analysts. With that, I will hand over to Nilanjan. Thanks, Pravin. Hello, everyone, thank you for joining the call. I trust each of you and your families are safe and well. We are encouraged with our quarter one performance, which has significant and broad-based acceleration in growth as we began the year. At 4.8% CC growth, we clocked the highest sequential Q1 revenue growth in the last 11 years. On a year-over-year basis, revenue growth accelerated to 16.9% in constant currency terms, which is the highest growth in any quarter over the last 10 years. This growth is on the back of a relatively strong Q1 2021 performance, which was at the peak of pandemic-induced revenue impact. Operating margin for Q1 was 23.7% and increased by 100 basis points over Q1 2021, while being 80 basis points lower compared to Q4 2021. The major components of the sequential movement were a 10 basis points benefit due to currency movement, a 40 basis points benefit due to increase in utilization, and these benefits were offset by a 50 basis points impact due to increase in subcon and third-party costs, and another balance 80 basis points impact due to other costs primarily related to employee hiring, promotions, retention, and well-being costs. EPS grew by 26.1% in dollar terms and 22.6% in INR on a year-on-year basis. DSO for the quarter improved by one day to 70 on the back of robust collections. Consequently, free cash flow continued to increase and was $ 863 million in quarter one, an increase of 18.5% year-on-year. FCF margins stood at 122% of net profits. Driven by healthy cash generation, consolidated cash investment was $ 5.07 billion, after returning approximately $1 billion of final dividend and initiation of buyback. Consequently, ROE increased to 29.3% in quarter one compared to 27.4% in quarter four. I'm happy to share that ROE has increased by over 3.4% in the last two years, driven by a robust capital allocation policy. Yield on cash balance continued to decline. The yield was 4.9% in quarter one compared to 5.1% in quarter four and 6.1% in quarter one last fiscal. Now let me talk about the progress made on the buyback plans. We initiated share buyback on June 25th after securing shareholder approval during the AGM on June 29th. Out of the maximum buyback size of INR 9,200 crores till June 30th, we have completed INR 690 crores or approximately 7.5% of the buyback by end of quarter one. During this period, we bought back 4.4 million shares at an average price of INR 1,572. Till date, we have completed INR 1,532 crores of share buyback and bought back 9.8 million shares at an average price of INR 1,569. As the pandemic situation is improving in many parts of the world and businesses slowly return to normalcy, we expect some of the discretionary costs, including travel facilities, etc., to start normalizing in the coming quarters. In quarter two, we will also roll out compensation hikes for majority of employees. With the talent markets remaining heated, we are anticipating continuing costs relating to employee retention, acquisition, and well-being in the short term. Given our focus on structural levers to improve efficiency and cost structure, we remain confident of our margin guidance band of 22%-24% for the full year. Given that strong quarter one visibility driven by deal signings, backed by a robust deal pipeline, we are increasing our revenue growth guidance for the year to 14%-16% from 12%-14% previously. With that, we can open the call for questions. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Anyone who would like to ask a question, you may press star and one at this time. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Moshe Katri from Wedbush Securities. Please go ahead. Hey, thanks, and congrats on the very strong results. Most of the questions we're getting this morning were around margins and the leverage in the model and, I guess, there's a lot of focus on wage inflation that's picking up and attrition that's picking up. Maybe you can talk a bit about the levers in the model and how do we get that comfort that the 22%-24% EBIT margin range is sustainable beyond this year. Should we assume that, I guess, the second half should have maybe some less pressure on margins, given some of the normalization on the bench? Is that the right way to look at it? Thanks a lot. Yeah. Moshe, I think, as we had given the guidance at the beginning of this year of 22%-24% and coming on the back of 24.5% last year, I think we were very clear that there would be some headwinds, which we had got the one-off benefits during FY 2021, and we had articulated that clearly in terms of travel, facilities, some other discretionary costs. The deferred costs like wage hikes, promotions, et cetera, which were put on hold. We had clearly said that that will be an impact and a headwind as we look into FY 2022, and that was really factored into the 22%-24% margin as well. What has changed slightly has been, of course, the demand, which has picked up. Like I always say, it's better that demand chases supply rather than supply chasing demand. Because, in the long run, it's much better to fulfill demand as it comes. We can continue to work on our cost optimization levers, that's why, of course, our guidance also goes up. We have seen these small headwinds during the year and in terms of retention costs going up, some impact on subcon. For instance, we just announced we will take now 35,000 college graduates, right? That will help us to fuel the pyramid, help us in cost optimization, and of course, we continue to look at the other avenues of automation, onsite, offshore mix, et cetera. I think our 22%- 24%, we're quite confident on that. While there may be these short-term impacts. I think, some of them like subcon, et cetera, once hiring comes back in our own, we should see some benefits there. I think in our overall model, we remain quite confident within the 22%- 24%. Like I said, I mean, the most important thing is that demand is chasing supply. This is a situation you really want to be in rather than the other way around. Understood. Just as a follow-up, given the fact that digital is almost 54% of revenues, should we assume any sort of pricing power coming out from that part of the business, especially based on some of the commentary you're seeing from some of the pure play digital names out there? Thanks a lot. I think, as you know, there's been two structural impacts, I think, with the pandemic. One is, of course, the entire workforce transformation and the ability basically to work any part of the world, whether near shore, offshore, on-premise. The other one is, of course, this whole digital transformation impact, which is very, very fundamental to how the clients of our consumers are interacting with brands. I mean, this is just not about mainline brick-and-mortar retail. This extends to manufacturing, it extends to financial services, insurance. I think a lot of our clients fundamentally realize that to support and fuel the spend towards new digital transformation, a lot of that can come from cost optimization, which in a way speaks to the whole offshoring trend. COVID has demonstrated that we can fulfill this requirement from any part of the world, and that savings can be fueled back into the digital transformation. That's, at a demand level, very, very good news. Also, I think now a lot of our conversations is also more navigating towards value and that kind of value we are deriving for our clients, right? Whether it's on the consumer side, it's on retention side, it's on supply chain logistics. How we position ourselves, not just about a rate card as a price per hour, but more about more innovative ways of pricing, where it's clearly linked to outcome, linked to results of our clients. That's the way we think in future this can help us. I think this is just about started the work we are doing, and we think over the next few quarters and more structurally, we may be able to get some tailwinds around this. Thanks for the color. Thank you. The next question is from the line of Diviya Nagarajan from UBS. Please go ahead. Thanks for taking my question and congrats on a very strong quarter and the guidance, Salil. Just a follow-up to the earlier question on pricing. I noticed that you are talking about structural movements in pricing, but at the press conference, I think, Salil, you had pointed out that pricing was more or less stable. I'm trying to understand why we wouldn't be seeing a better pricing environment, given how strong demand is and the fact that there is a fair amount of supply pressure across pretty much every part of the digital value chain. That's my first question. Thanks, Diviya. This is Salil. I think the point you make, earlier in the press conference, the question was on how we've seen the pricing in Q1 from what we see in terms of last deals and past interactions. Your point here in terms of what is the opportunity to see some pricing power and also building on the previous question. I think as Nilanjan was sharing with you, we believe we have an extremely differentiated digital portfolio, and we believe that that creates a lot of value for our clients. We are very active in making sure that we demonstrate and communicate that value. We will now see over time, also because of the supply constraint, but also because of the digital value, how that translates. That's one of the strategic levers that Nilanjan has talked about, we've all talked about in the past. We feel that, among others, gives us a good comfort for our guidance span, 22%- 24% on operating margin. We will see how that plays out, and especially with the supply constraint. If that gives us more leverage in the future, of course, that will become reflected in what we see in the business. Got it. I noticed that the net new deals were a little bit on the lower side compared to what you've done in the last few quarters. While I do appreciate this is a quarter and you could have fluctuations, how do you see the deal pipeline on your net -new TCV for the rest of the year, please? There, you're absolutely right. I think these are quarterly fluctuations. We look really to those sort of stats on a longer timeframe. We saw last year, the net -new was significant, as we looked at the overall annual number. The pipeline looks good and strong. There's good focus on new deals. There's also, of course, good focus on ensuring we continue where we are and expand into that portfolio. No visible markers to change that. We'll probably look to replicate what we've done in the past few years, where net -new has been a critical factor and it remains something we look at proactively into the pipeline. Sorry, just a quick follow-up to that. Has the number of mega deals in the pipeline gone up since in the last few quarters, say? There, Diviya, we don't provide some more color on the specifics of the pipelines. Suffice it to say that the overall value of the pipeline is extremely good. A nice increase from the previous quarter, and we see that continuing to increase. The pipeline's comprised of a mix of the different types of large deals. Let's call it medium, the large, and the very large. Thank you. I'll come back for follow-up if there is time. I wish you all the best for the rest of the year. Thank you. Thank you. The next question is from the line of Sudheer Guntupalli from ICICI Securities. Please go ahead. Good evening, gentlemen. Congrats on a great quarter. My first question is to Salil. Salil, until GFC also, Infosys was holding the pole position in the IT industry in terms of growth. The next decade has not really panned out the way one would have hoped for. Again, over the last couple of years, even before the start of COVID and of course, after the start of the pandemic as well, Infosys has been outperforming competition on growth, and that too by a wide margin. You have been very confidently talking about market share gains from competition. How confident are you on sustainably driving the company to the pole position once again over the next decade? Thanks for the question. I think that the way we are looking at this is, this growth, 16.9%, 4.8%, is really the fastest in the past 10, 11 years. It's essentially organic growth, so we feel extremely good because that's a good metric as, of course you know well, that clients are preferring Infosys. That's the ultimate test in this market. We feel comfortable that the capabilities that we have built in that digital portfolio and this extreme dedication of our employees in a very difficult period over the last several quarters is combining to give us that outcome. The focus remains on client relevance and therefore the outcome metric is growth. We will see how the pole position thing plays out over time. Awesome. My second question. Actually, over the previous decade, whenever things started looking up, we faced some of the other hiccups. How confident are we that this time around it will not be the case, and the entire focus will be in terms of achieving the industry leadership? I didn't follow that question, sorry. Could you repeat the question? We couldn't follow it. Yeah. No, I was saying over the previous decade, whenever things started looking up, we faced some of the other hiccups. This time around, how confident are we that it'll not be the case and there will not be any such risk, and probably the entire focus will be on achieving industry leadership? There, if I follow it's still a little bit unclear with the sound, I mean. Our focus is to keep our attention to clients. We have an extremely motivated leadership team. The board is extremely supportive, very strategically minded, and really give good guidance and support to the management team and the broad leadership. My own sense is, we keep this attention to our clients and building out the digital capability, and the rest will follow from that. Okay. Thanks, Salil. All the best. Thank you. The next question is on the line of Pankaj Kapoor from CLSA. Please go ahead. Yeah. Thanks for the opportunity. Salil, my first question is also on the net -new deals CC. I think because personally, you had mentioned that the focus of clients is now shifting away from cost optimization. Does it mean that clients are now taking longer to decide on the deals as well as in terms of the deal construct? Is that what is leading to maybe a softer net new deals CC for us? The quarter-on-quarter view of that percentage is always a little bit up and down. What we see in the pipeline is a significant amount of activity where clients are looking at moving on the digital transformation program and also working on areas which relate to cost efficiency. Also we are seeing opportunities which we've discussed in the past on vendor consolidation. We don't see that the timeline has changed in terms of deal movement, nor do we see some different sort of criteria in terms of the types of deals or the pricing. What is clear is the broad economic growth in our end markets, which is coming back rapidly, is allowing for many industries to go through the transformation. Companies within industries are accelerating. Companies which have lower digital presence are going faster to catch up and leapfrog. Companies which already have digital presence are making sure that they maintain their advantage. All of those things bode well for the technology spend, where we are positioned quite nicely in that technology spend. Pankaj, is your question answered? We just lost this line, sir. We'll move to the next question. The next question is from the line of Ashwin Mehta from Ambit Capital. Please go ahead. Hi, thanks for the opportunity. One question in terms of guidance. If I presume Daimler has not contributed to revenues till now, and even if I build in the numbers that are appearing in the press for that deal, the implied CQGR over the next three quarters appears to be pretty soft at between 0.6%-1.8%. Are we building in some conservativeness in terms of our guidance or anything that makes us a little cautious here? On the guidance, as you've seen on revenue growth guidance, we've increased it by 2 points, 12%-14% to 14%-16%. It's, I think, demonstrating our confidence in what is going on with respect to the demand outlook and with respect to the deals that we have done for this quarter and also in the past. On the specific clients and their revenue mix, I won't comment, but I will say that we don't see really any softness in what we see in the coming quarters. Okay. Thanks a lot. Just one more. Given the fact that you've largely added freshers this quarter, and you are expecting the supply-side pressures or attrition to increase further, do you think the subcontracting expenses will further get elevated from where they are? On the subcontractors, we today have an extremely attractive talent proposition where, as you saw with the 8,000 people we added, net additions, we are managing extremely well to attract good talent. What we will ensure to do over this next quarter and of course, in the quarters to come, is to make sure that we are at the forefront of fulfilling the demand. In terms of subcontractor, we don't specifically model or forecast that whether it's up or down, but we have the flexibility to do all of that, plus our cost levers and margin levers to ensure that our guidance will be in the range that we have given of 22%-24%. Salil, just a follow-up to this. You had around 8,000 people getting added. From what I heard, if I heard it correctly, there were 10,000 freshers onboarded this quarter. Essentially the hiring seems to be largely freshers and they'll possibly take some time in terms of becoming productive. Do you think near term the hiring will be much more skewed towards lateral to fulfill the demand that we are seeing? Yeah. The 8,000, while you're seeing the figure of freshers of 10,000, I think there's a big lateral hiring as well. The attrition, of course, is largely lateral because freshers won't attrite. In talent, we have a very strong engine. The first one is, of course, freshers. That's after that, followed by laterals. In a way, the top-up in a way is the subcon. All the three we activate. Like I said, it's very important to meet demand now. That is absolutely critical. The good thing is we've not let down any of our clients. We talked about earlier that we are seeing strong demand outlook and a lot of clients who we've met as well, as I mentioned, and that's why very important to get that out of the door and then figure out our cost structure, subcon, et cetera, in due course. I think that's something we're quite comfortable with. We continue to remain a brand of choice for new talent. That's a very strong proposition which we have. Thanks a lot and all the best. Thank you. The next question is from the line of Keith Bachman from Bank of Montreal. Please go ahead. Hi. Thank you very much. I wanted to ask about the margin guidance for the current fiscal year. If you take the guidance range of 22%-24%, I just wondered if you could break down what are the key drivers for the year-over-year decline from what you already reported for FY 2021. I just wondered if you could break that down into the bigger pieces. What I'm really trying to understand is how much wage inflation is impacting margins of guidance for the year versus other factors such as mix and particularly the ramping of the large new deals. If there's any kind of comments you could help us understand, I have a follow-up question, please. Yeah, sure. I think, again, like I said, it's important firstly to go back even before the pandemic into FY 2020, in a way, when we had given this comfort range of 21%-23%. As we moved into FY 2021, like I mentioned earlier in the call, we saw a lot of these one-off benefits. It was the discretionary spend. Travel came down quite sharply. For facility staff as people started working from home. Marketing, some discretionary spends like that. The deferral of the pay hike from last year, the promotions, and therefore, although we were at 24.5%, we were very clear at starting the guidance at the beginning of the year that this would fall with the headwinds coming up of this year. As many of these costs reverted back to normal. We would roll out our pay hike in January and in July, both of which factored in. Therefore, our guidance of 22%-24% versus the 24.5% was clearly reflective of these headwinds coming up. I think more than once we've talked about it. As we looked ahead, we factored in both the wage hikes. Yes, wage is always the number one player in margin. We don't split out the impact of wage or deal mixes. Nevertheless, the largest impact on the margin movement on a year-over-year basis will be on wages. Despite this, we know we are very comfortable within the 22%-24%. The lever which we continue to employ, automation, is a massive lever in terms of our cost optimization of taking our people from projects and redeploying them. The onsite also mixes. I think we're very unique in creating an onsite pyramid historically. Most IT services companies have a very steep onsite pyramid. Our six hubs in the U.S. nearshore businesses, I think that helps us build a much more flatter pyramid in a way semi-mimicking what we have in the offshore geographies. We are going to hire 3,000 people. We are going to hire the highest freshers outside of India. All these will help us in the future in terms of taking some of the wind out of these headwinds which are coming our way. Okay. Thank you very much. My follow-up question, if I could, is similar. As you think about the year unfolding, do you think attrition moves lower from here or stays the same or goes up? Similarly, as you think about the onsite mix, has continued to move lower, so your offshore mix continues to move higher. How do you think that unfolds through the year? Does that mix of onshore, onsite stay where it is, becomes more favorable, or any comments on how attrition and onsite-offshore mix might move as we look for the balance of the fiscal year? That's it for me. Many thanks. Yeah. I think on the attrition, like I said, I'd rather be in a situation where demand is clearing supply than the other way around. Therefore, that's fundamentally a good news for the industry. I think it's important to realize that it takes time for the supply chain of the industry to catch up. Fundamentally, the only way new net demand can be in a way serviced is through fresher counts. Otherwise, it's a zero sum game. My attrition is somebody else's lateral, and somebody else's attrition is my lateral. Fundamentally, the only way this demand can be serviced is through freshers. As you know, most of the freshers historically, the college campus freshers are in a way contracted six months or a year out. It is only now that this demand has suddenly surged that we are looking at new ways of getting freshers on. In the last call, we had only mentioned we would take 25,000 freshers. We've upped that up to 35,000 freshers and started a completely new parallel fresher hiring program off-campus through digital services. I think there will be some gaps, short-term gaps in terms of once the supply chain sort of adjusts itself. Like I said, this is good news if fundamentally there is this large explosion of demand which you're seeing across. From that sense, our job is fundamentally to continue feeding the demand, whether it is through the freshers, through subcon, or through the laterals. I think we've already hired 8,000 net despite the attrition in the quarter. What was the second part? On part automation, yes, I think again, we've seen this massive change over the last three years roughly. It came from 30% to 27%, and within one year from 27% to 24%. Again, we talked about it earlier in our guidance that we would probably see a little bit of this easing out as travel, et cetera, opened up. I think the secular trend definitely is this should continue in the long run. Big impact of the COVID has been that clients have been able to see that work can be performed across the globe. It necessarily doesn't have to be invested in their own workforce. They've seen it with us, that work doesn't have to necessarily be performed in front of them onsite. It can be same time zone, different location, same time zone nearshore, it can be offshore. I think that in the long run, I think very, very positive for the outsourcing industry. We think secularly this should improve, but in the short term, there can be these stops and gaps as well. Okay. Thank you. Thank you. The next question is from the line of Gaurav Rateria from Morgan Stanley. Please go ahead. Hi. Congrats on a great execution. The first question is on the BFSI. We have seen a very sharp recovery in North America financial services revenues compared to pre-COVID levels, whereas Europe is still just about to recover to the same level. Is it fair to say that our entire market share gain is largely concentrated in North America? Why there's a dichotomy? Any color on that would be helpful. Yeah. This is Pravin here. A big part of the growth has definitely come from North America and primarily in sub-segments like banking, mortgages, and wealth and retirement services. Hello? Oh, okay. I thought I'd responded. I'm confirming that most of the growth has been primarily from. My question was why there's a dichotomy in the performance between Europe and North America. I think it's mostly to do with maybe it's lesser demand in some of the banking clients in Europe. In some cases where we won the deals, there is a delay in ramp-ups as well. I don't think it's a secular trend because in this space, in the last six to eight quarters, we have announced very strong growth consistently. There have been times when we have seen growth led by U.S. side of the equation, and there have been times when we have seen much stronger growth in Europe and Asia Pacific. It's not a secular trend. We are not seeing any specific softness or anything with any specific clients in Europe. It is more a question of delayed ramp-ups and things like that. Okay. Second question is on margins. What really are the drivers that can take you to the upper end of the guidance for the full year? What would be those two or three key factors? Is it growth coming towards the upper end of the guidance? Is it digital continuing to grow at this kind of a rate? Just trying to understand what are the variables which can take you to the upper end of the guidance. Thank you. I think we gave an overall guidance of 22%-24% and not what is going to be the quartile of that. We remain quite confident to operate within this. Our levers are quite well-known. We've mentioned about automation, the mix, the pyramids, subcon, operating leverage. We're seeing a lot of benefit of operating leverage over the last year itself on our bottom line. There are many multiple levers, and like I said for us to stay within that, we're quite confident without giving any quartile targets, et cetera. Thank you. Thank you. The next question is from the line of Ankur Rudra from JP Morgan. Please go ahead. Thank you. Congrats on a good start to the year. On the first question, do you think looking at the demand environment that you'd want to be a bit more flexible on where your margins land and how you're optimizing for growth and investments compared to the plans we had at the start of the year? Ankur, this is Salil Parekh. Thanks for the question. I'm not sure I fully follow it, but just to first respond, then we can clarify. The way the demand environment is shaping up, which I know you see very well, is extremely strong. Our approach is to make sure that the capability sets we build are available to our clients to help them with their digital programs and their automation programs. Within that, we at this stage are not trying to fine-tune what part will go more or less. We see that demand as a holistic picture, and we are driving to make sure that we work with our clients in doing that. What is clear, as Nilanjan shared a little bit earlier, is that we have several levers in the operations toolkit, if you can call it that, which we are deploying so that each of the streams of work, wherever they start from, are then further optimized. That gives us the confidence because of those levers, that we will land fairly clearly within the margin band. That's the approach that we have in place today. Thank you, Salil. I think part of my question which has not been probably completely addressed was, do you think, for example, the margins came in lower in Q1 versus what you had planned earlier, and hence you are being a bit more flexible, and what you said, chasing demand as opposed to optimizing for margin? Oh, no. I think my sense is we had shared over the last year, and I know Nilanjan had also shared, that many of the actions we took last year were giving us, or many of the outcomes last year, were one-time benefits. For example, on the travel. Of course, the on-site offshore mix has moved much more in a secular way. The fact that we reduced several other cost line items in the March, April, May timeframe last year with a different view to where things were going. We didn't think, at least in our minds, that the margin was going to be different. We started the year also with 22%-24%, even as we closed out the previous year at 24.5%. We could see the salary increase, which we had done later than originally planned in January, the second salary increase of July, all of those were coming up. In that sense, we are not changing or, as you call it, chasing something more because this margin has come in low. We had this view of the margin as we started the year. The demand outlook has actually become stronger. We feel what we started with 12-14, with what we are seeing in the way these deals are working, and there's a lot of activity where clients are coming to us. To give you one example, two weeks ago, I was in a client discussion where they want us to expand what we do within that client portfolio. Within this one client, it could be 30%-40% expansion. These are just anecdotal, which add up, and my colleagues, all of our sales team, are having those sorts of discussions. That gave us the confidence to increase the growth guidance. Not that we are chasing something more because the margin was lower than what we expected. Appreciate the color. Just one follow-up if I can. Do you think the supply situation that you're facing in the market, which you elaborated on, do you think that had any bearing on the signings in the quarter? That's part one. Part two is the supply situation having an impact on the client conversations and competitive behavior from a pricing perspective? What we are seeing on the supply situation, again, if you look back over the last five or six quarters, and this is something I've heard from many clients, who feel that we have really consistently supported and delivered without any real constraint. We are seeing a benefit of clients saying, look, we'd rather you scale up with us. The supply situation, however we put it, I feel is coming to a benefit to us because we have, as Pravin has shared in other forums, an incredible brand which attracts talent. We have an incredible training capability. All of those things are not short-term things. These you cannot develop over a quarter. That helps us to bring in the talent, which is what clients see. Yes, there is a supply constraint because there's a huge demand, but we are still seeing good growth and in fact, improving our growth guidance. Thank you, Salil. Thank you. The next question is from the line of Sandeep Shah from Equirus Securities. Please go ahead. Yeah. Thanks for the opportunity. The question is, sorry to again harp on the margin. Just wanted to understand, is it the guidance factoring in some amount of pricing increase, maybe in the later part of this financial year, or the margin guidance is independent of this? If I look at wage hikes have still not come into the numbers, attrition is going up, utilization at all-time high. Even the offshoring looks at all-time high. Just wanted to understand the guidance. Is it baking in some pricing increase or it's independent of the same? Second, just a bookkeeping question. If I look at the unbilled revenue in this quarter on a QoQ basis has gone up by 12 percentage point. Anything to read in the same, though free cash flow generation continues to remain robust? I think on the margin side, like I said, there are continuous levers which we have. The pyramid, onsite, offshore pricing, subcon, operating leverage. I think all of that is built into our models and how we look for the quarter and ahead. On that basis, I think we are quite comfortable in the 22%-24% range that some of these bumps had been from as well. I think that we're quite clear on that. The second question on the unbilled, I think there is some seasonality always, which we see in quarter one always, if you see that, and usually that starts taping out. Nothing really concerning. I think the overall free cash flow or DSO has come down as well. Yeah, I think on percentage of revenue, we are same as the previous year as well. I think we are doing good. Nilanjan, just a clarification. In your guidance on the margin, you are baking in some pricing increase for FY 2022? Yes. I mean, a lot of things will go. It's not like I know what's going to be the pricing environment to the T in the fourth quarter. We know some of the initiatives on pricing. Some of them will come through, some of them won't come through. There will be some new cost pressures, there will be other levers. You have to be very dynamic and fleet-footed in our industry to continue to manage that. You use probabilities of what can work, what won't work. Some levers will over-deliver, some will under-deliver. All that is factored in as we forecast for the year ahead. Okay. Well understood. Thanks, and all the best. Thank you. Thank you. The next question is on the line of Dipesh Mehta from Emkay Global. Please go ahead. Yeah. Thanks for the opportunity, and congratulations for a strong execution. First question is about the margin related thing. Now then maybe, can you quantify what will be the impact of Daimler and large deal in Q2? Second question is also related to margin. That's why medium term. Now 22%-24% margin guidance, which we are confident to defend for this year. If one want to understand from medium-term perspective, do you think considering the digital is now more than half of the revenue and growing very strongly, plus overall strong demand environment, we can again achieve our historical 25% kind of EBITDA projection? Thanks. On the margin question, Daimler large deal is all factored in. We don't break up the impact of Daimler. We look at cost optimization across projects. We look at various levers we talked about. That in a way is all built into our 22%-24% guidance as well. On the digital, the question was? On digital, with respect to, this is Salil. I think your question was because it's becoming larger, will that give us the opportunity to have a different higher margin? We certainly see that the digital business is at a higher margin than our company average today. However, the guidance that we are giving for this financial year for operating margin, which is 22%-24%, there are many levers as Nilanjan shared, and of course, there are several areas which increase the cost as well. All of those will balance out. At the end of this year, we will provide the view for the following year. We don't have any particular view on that different number at this stage. Okay. Thank you. Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for closing comments. Thank you. This is Salil. First, thank you everyone for joining us for this session. Wanted to reiterate just a couple of points. One, on the demand side, we see a good environment. With all of the points we've discussed and the way we see the market, we've increased our growth guidance from 12%-14% to 14%-16% for this year. On the margin, we have a set of levers which we have deployed and are continuing to deploy across the board, whether it's the mix, whether it's the utilization, whether it's the subcontractor usage, whether it's the overall role mix and pyramid, whether it's now more value and pricing on demand for higher demand skills. There are some factors which relate to employee costs and some of the travel coming back. When we mix all of that together, we have confidence that we will be in that margin guidance of 22%-24%. We will continue to drive the business in that direction, keeping in mind our clients, employees, and shareholders. We look forward to a very exciting and successful year, and thank you again for joining us. Thanks. Look forward to connecting with you again. Have a good day. Thank you very much, members of the management. Ladies and gentlemen, on behalf of Infosys, that concludes this conference call. Thank you for joining us, and you may now disconnect your line.