Ladies and gentlemen, good day and welcome to LTI Q4 FY21 earnings conference call. As a reminder, all participant lines will be in the 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Sunila Martis, Head of Investor Relations. Thank you, and over to you. Thank you, Sanford. Hello, everyone, and thank you all for joining us today to discuss LTI's Q4 and full year FY21 earnings. The financial statements, press release, and quarterly fact sheet are all available in our filings with the stock exchanges as well as in the investor section of our website. Today on the call, we have with us Mr. Sanjay Jalona, CEO and Managing Director, Mr. Sudhir Chaturvedi, President, Sales, Mr. Nachiket Deshpande, Chief Operating Officer, and Mr. Anil Rander, our Chief Financial Officer. Sanjay and Anil will give you a brief overview of the company's performance, which will be followed by the Q&A session. As a policy, LTI does not provide specific revenue or earnings guidance, and anything said on this call which reflects our outlook for the future or which can be construed as a forward-looking statement must be reviewed in conjunction with the risk that the company faces. Let me now invite Sanjay to talk about our results. Over to you, Sanjay. Thank you, Sunila. It has been over a year since COVID-19 was declared a global pandemic. A year of terrible loss of lives and livelihoods. Globally, communities are still confronting extreme social and economic strain as the human toll rises and millions remain unemployed. Last many weeks have witnessed a sudden surge of COVID cases across India. It is just heartbreaking to see and hear about the struggles and pains of numerous people across the country. This time, COVID has touched much closer to all of us. Like many around the world, we at LTI have lost a few of our employees to the pandemic. On behalf of everyone here, we extend our deepest sympathies and condolences to the families as well as all those who are struggling to cope with the crisis and who have, most unfortunately, lost a loved one. Our priority at LTI continues to be employee safety and supporting our employees. We are working to ensure medical help and financial aid to the best of our abilities for our employees. We are also working with the relevant authorities to organize vaccination camps in our campuses for our colleagues based in India. I hope that the situation improves and the affected people find the strength to recover and recuperate. Recently, I wrote to all our customers about the situation in India and the response from LTI. The messages received from clients have nothing but strong support, kindness, and care for our people. It's quite touching and overwhelming to read these responses. The world is showing great character in dealing with the situation. If we look beyond the public health crisis, FY21 has been a year of several inflection points. In the past one year, every industry has been required to reimagine their operating models to survive and stay relevant. The lines between B2B and B2C have blurred with several B2B organizations facing the need to explore new routes to market and sell directly to end consumers during the pandemic. For instance, several manufacturing and CPG companies are trying to reach you and me directly for the first time. Most of these organizations are either building or speeding up their B2C capabilities. The future of workplaces is also evolving at a rapid pace with work from home, which started off as a necessary stopgap measure to keep companies operating amid the health crisis evolving into a new business paradigm. This has permitted a surge in reverse migration across most professionals close to their homes, away from Tier 1 cities. We now have work moving to where the people are, with several companies planning to set up satellite and collaboration offices across Tier 2 and Tier 3 cities. This will result in most companies gradually building out a far more distributed and diverse workforce. If you look at the major events in the last century, the Great Depression, Great Recession, and now the Great Restructuring. I call it Great Restructuring because we are facing fundamental changes to the way we live and work, and the situation continues to evolve. The way we interact, collaborate, learn, deliver, and expect value has changed forever. This Great Restructuring is so comprehensive that no industry, company, country, and to some extent, even individual, is isolated. What we are witnessing is a curve-bending phase where status quo is no more an option. Every industry has to restructure and adapt to the new normal, and that creates tremendous opportunities for us to partner with our customers. I'm so proud of how our team at LTI has responded to these challenges and seized this opportunity. We have a blend of experience and innovation that are coming together to allow us to execute with more creativity and speed. We pioneered innovative solutions during this time, like XFH, SafeRadius, Canvas, and the Grid Alliance. These are helping us pave our future as much as they are helping our customers steer through this change. Before I talk about our results, let me take a minute to introduce and welcome Anil Rander, our new CFO, to the leadership team. He's a seasoned finance leader with over 27 years of multifaceted experience. Anil joins us from Tech Mahindra, where he was a global head of finance for BPS. As senior vice president, finance and legal, he led the finance, legal, facilities, and risk management functions of Tech Mahindra Business Services. We are very happy to have him with us as we chart the next phase of growth at LTI. Coming to our results, our Q4 numbers cap another year of industry-leading growth. We delivered revenues of $447.4 million, a growth of 4.6% quarter-on-quarter and 9.1% for Q4 year-on-year. In constant currency terms, this translates to 4.4% and 7.1% respectively. This helped us conclude FY20 on with a revenue of $1.67 billion, growth of 9.5% in dollar terms and 8.8% in constant currency. The board of directors at their meeting held yesterday have declared our final dividend of INR 25 per equity share. We had two large deal wins this quarter. Our first one is a vendor consolidation win with an existing logo and is part of the insurance vertical in North America. LTI has been chosen as a long-term strategic partner for management of core insurance platforms for a large Fortune 500 insurance company. This is a unique deal which includes vendor consolidation and several modernization programs across multiple core areas in the P&C space. The deal tenure is five years and the net new TCV of $21 million, and it'll grow from there. This deal has won against top-tier incumbents. Our second is in the BFS vertical with a new logo. One of the world's largest Islamic banks is in the process of a digital transformation to enhance its Islamic lending and financing products capability. LTI has been selected as a prime system integrator to accelerate the first phase of this transformation program using Temenos T24 platform. This implementation by LTI will enable the bank to introduce new lending products to the market, reduce complexities, service its increasing customer base in a faster and efficient manner while lowering the total cost of ownership. Paired with pre-configured local functions, this transformation will enable the bank to cater to regulatory requirements within a relatively short time span and reduced effort. The deal tenure is two years with a TCV of $45 million. We have won this deal against leading global consulting companies. This win is a playbook example of how we leverage acquisitions to enhance our capabilities and drive growth. Our pipeline continues to be healthy, and we added two Fortune 500 logos to our list of clients in Q4. With this, our total Fortune 500 customer count goes to 71, an addition of five during the year. Before we move to the performance of our business verticals, let me share a few updates with you. The result of our annual third-party conducted client satisfaction survey has come in, and our scores have improved sharply. Our customer experience index has seen an 18% increase in the last one year alone. 80% of the respondents were delighted with our remote delivery during the pandemic. We also scored well on responsiveness and client engagement. Our focus on customer centricity has been widely recognized as seen as a key differentiator, followed by our partner mindset. Supplementing the finding of the survey was our top rank by Everest Group PEAK Matrix IT service provider in their list of challenges for 2021. These recognitions demonstrate the credibility of LTI to focus on building capabilities, getting recognition, and putting all our grit together to solve the customer issues. In our endeavor to continue building and scaling differentiated capabilities, we had carved out two separate units to focus on cloud and data products. Some updates on these units since our announcement a few months back. On the cloud side, we have made significant progress, both in terms of setting up a dedicated organization and in terms of market success. We continue to strengthen our team with new leadership hires across technology and business roles. We have started seeing momentum pick up with a spate of new wins and implementation across all geographies. We have entered into a global strategic partnership agreement with AWS to enable accelerated cloud adoption requirements of enterprises. We are investing further to expand assessment, migration, and modernization capabilities with primary focus on SAP application workloads, IoT, and data analytics-driven solutions and services. We reached a significant milestone with Azure. LTI is now a certified Azure Expert Managed Service Provider. This makes us part of a pool of only select Microsoft partners worldwide to be rewarded with this prestigious MSP badge, which is an assurance of our proven expertise in Microsoft Azure capabilities to assist clients in their transformation journeys. On data products, our near-term focus is to building dedicated go-to-market teams, branding, marketing, sales, and partnerships. In many cases, our data products are creating a new category of innovative solutions. We are getting market validations as well as recognitions in the latest reports from Gartner and Forrester. Leni and Mosaic were both featured in the Forrester Tech Tide, Enterprise Business Insights and Analytics. Overall, early days in the setup of dedicated units for both these businesses. The signs are very encouraging even as we build out the foundation. Another focus area for us is the enterprise applications market. This space is undergoing rapid transformation due to exponential growth of cloud-based applications, advancements of intelligent technologies, and new market entrants with disruptive propositions. LTI has always been a major player in this space. However, we want to renew our approach to enterprise application market and consequently have created a new sales unit called Intelligent Enterprise Sales. This unit is focused on major enterprise application economies like SAP, Oracle, Salesforce, and MS Dynamics. Our initial plan centers around investments in major areas such as consulting, go-to-market initiatives, productized offering, and delivery platforms. Let me now provide you with the color on performance of our verticals. BFS, our growth of 5% Q-on-Q was driven by broad-based performance of all our clients in this vertical. One of our large deal wins this quarter is with a new logo from this vertical and involves a digital banking transformation program, as I talked about using the Temenos T24 platform. In Q3, in partnership with Temenos, we announced the launch of our digital banking platform in the Nordic region that we talked last quarter as well. This strategic partnership for both companies was a joint sales effort to capture the market. I'm happy to say that we have won our first customer here. A pan-European financial services company has selected LTI to provide banking as a service for its performing loan segments. The new powerful digital banking platform is based on Temenos' cloud-native technology and will enable our clients to scale, modernize, and reduce IT costs significantly. Moving to insurance, we saw a 0.8% quarter-on-quarter growth here. Our other large deal win is in this vertical and is a result of vendor consolidation exercise by an existing client in North America. While we have reported soft numbers in this vertical over the past year, we hope to strengthen our performance going forward. Manufacturing grew 5.5% quarter-on-quarter. This is a combination of ramp-up of our existing logos and some pass-through revenues in one of our India engagements, which flows through in H2. Energy and utility. This vertical has been soft for most of the year due to the declining oil prices and the impact of COVID-19. We have ended the year with a decline of 2.8% Y-on-Y. On our last call, we had shared some expectations on how sector spends would continue to be impacted. Our large deal announced last quarter from a global Fortune 500 energy company in transition phase and is going as per schedule. We expect to see further ramp-up in the deal in FY22. One of the large Fortune 500 clients which we have added this quarter also belongs to this vertical. CPG, retail, and pharma grew up 3.5% quarter- on- quarter, driven by some of our large deals announced in the previous year, as well as our existing logos. High tech and media grew by 16% quarter- on- quarter. One of the drivers for this growth has been a large deal win with Injazat announced last quarter. The ramp-up on this deal has happened earlier than expected, and we have completed the rebadging of around 350 resources and are in the full-fledged operation mode now. We've also had some good client additions in this vertical during the quarter. The second Fortune 500 client which we have added in Q4 also belongs to this vertical. Others, which includes government business, defense business, professional services, pseudo-government bodies, registered 8.2% growth quarter on quarter. This growth is being driven by the scheduled ramp-up of our earlier announced large deal wins and some of our existing logos. Digital revenues across all our verticals now account for over 45% of our total revenues for the quarter. You have heard my views on this classification earlier. Our philosophy has always been that clients are spending money only on new technologies, and the lines between digital and so-called traditional services are blurring. This trend of calling out digital revenues has started five years back as the industry attempted to provide validations on our efforts to reskill and remain relevant. We think that this matrix is no longer a relevant measure of our capabilities and performance. Hence, starting FY22, we shall stop reporting these numbers. On outlook, let me now just give you some details. We delivered market-leading growth in FY21. We had strong growth momentum supported by record large deals TCV in the year. We continue to execute and deliver in challenging and changing times. Excuse me. Our pipeline remains healthy. We will continue on that strong momentum. Our strong Q4 exit rate, strength of our pipeline, and incredible conversations we are having with our customers give us the confidence that we'll be in the leaders quadrant for growth in FY22 as well. Considering the investments we plan to do in the areas of capacity building and sales, post-COVID workspaces, reskilling, diversity, and localizations as detailed earlier in the year, our margins will be in the narrow band of 14%-15% for FY22. We also need to acknowledge the uncertainties from a second wave of pandemic, especially in India. While vaccination continues to be rolled out in phased manner, the number of people impacted by the virus continues to spike. According to some media articles, the impact of second wave has been concentrated around the middle class and the urban affluent or those in the high-rise buildings. In line with this, we are also seeing a high number of our employees being impacted directly or indirectly by the ongoing second wave in comparison to the first wave. Safety of our employees and fulfilling our promises to our clients remain our top priority. Thanks to our committed workforce, we continue meeting client deliverables and timelines. We are closely monitoring the health crisis and continue to stay connected and update our clients on our evolving situation regularly. I sincerely hope that these things improve for all those who are impacted. Given our performance for the year and to recognize the untiring effort of our employees, we have advanced our performance review cycle for FY22 for all our employees except for our senior executives. I'm happy to state that we would be rolling out salary hikes effective April 1st instead of our regular July cycle. With that, let me hand over to Anil. Thank you, Sanjay. Hello, everyone. I am happy to be speaking with all of you today on my first earning call for LTI. Hope all of you are keeping safe and healthy. Let me take you through the financial highlights for Q4 as well as the financial year 2021, starting with the revenue numbers. Our revenue stood at $447.4 million, up 4.6% sequentially and 9.1% year-on-year basis. The corresponding constant currency growth was at 4.4% quarter-on-quarter and 7.1% year-on-year. Reported INR revenue of INR 32,694 million was up 3.7% quarter-on-quarter and 8.5% year-on-year. Revenue for FY21 stood at $1.67 billion, growing at 9.5%, which corresponds to a constant currency growth of 8.8%. In rupee terms, the full-year revenue was INR 123,698 million, registering a growth of 13.7%. Now coming to profitability. EBIT for the quarter was INR 6,329 million, translating into an operating margin of 19.4% as compared to 20.6% in the previous quarter. The impact of wage hikes effective from January 1st, 2021, were partially offset by operational efficiencies, leading to about 120 basis points decline in margins for the quarter. For the full year, operating margin was at INR 23,926 million at 19.3%, against 16.1% of the previous year. Reported profit after tax was INR 5,457 million, which translated into a PAT margin of 16.7% this quarter as compared with 16.5% in quarter three. Other income pertaining to quarter four FY21 includes a write-back of certain earnouts payable towards [a money requisition] amounting to at least INR 571 million. Adjusting for this amount, PAT margin for Q4 FY21 would have been at 14.9%. Our full-year PAT stood at INR 19,382 million, helping us deliver a full-year PAT margin of 15.7%. Considering the investments outlined by us on our Analyst Day, our margins will be in the narrow band of 14% for FY22. On the employee metrics, moving on the people front, utilization without trainees was at 82.2% as compared to 84.1% last quarter, and utilization including trainees was at 80.8% versus 81.1% in quarter three. Full-year utilization including trainees stood at 80.5% as compared to 79.5% last year, and without trainees at 82% as compared to 80.9% last year. We continue to strengthen our workforce, and during Q4, we added 2,008 people on a net basis, and for the year, it stood at 4,554, which translates into 14.5% growth in headcounts from FY20. The total manpower stood at 35,991, of which our production associates were at 95%. In this quarter, the attrition is at 12.3% versus 12.4% last quarter on an LTM basis. Moving to on our Forex and hedge book. Our cash flow hedge book stood at US$1,354 million as of 31st March 2021, versus $1,296 million as of 31st December 2020. While the on-balance sheet hedges stood at $65 million versus $69 million last quarter. Moving on to DSO in Q4, the billed DSO improved by two days and stood at 61 days as compared to 63 days last quarter. The DSO including unbilled was at 94 days, an increase of one day quarter-on-quarter. DSO including unbilled was lower by 12 days as compared to the corresponding quarter last year. The net working capital is at 15.1% of the revenue as of 31st March 2021 as compared to 16.4% as on 31st March 2020. For the quarter, the net cash flow from operations was at INR 7,136 million, which was at 130.8% conversion of net income. For the full year, the net cash flow from operations was INR 23,997 million at 123.8% conversion of net income versus 108.1% in FY 20. This represents a growth of 46% year-over-year. At the end of quarter, cash and liquid investments stood at INR 43,877 million as compared to INR 38,560 million as on 31st December 2020. The effective tax rate for the quarter was at 23.9%. The board of directors at their meeting held yesterday, have recommended a final dividend of INR 25 per equity share. The earning per share for the quarter stood at INR 31.2 as compared to INR 29.7 in quarter 3. Diluted earnings per share was INR 31 versus INR 29.5 last quarter. Diluted earnings per share was INR 110.3 in FY21 versus INR 86.6 in FY20. Before I end my presentation, I would like to say that solving for society is one of our core beliefs. We will continue to explore ways in which we can work with communities and those around us to help them overcome the second wave of this pandemic. With that, I would like to open the floor for questions. Thank you. Thank you very much, sir. Ladies and gentlemen, we will begin the question and answer session. Anyone who wishes to ask a question may please press star then one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star then two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. To ask a question, please press star then one. The first question is from the line of Sudheer Guntupalli from ICICI Securities. Please go ahead. Yeah. Hello, gentlemen. Thanks for the opportunity. Sanjay, while the company level growth for the full year has been very impressive at around 10%, growth in the top 20 accounts is very weak. It's actually in the range of 1%-4% across different sub-segments across the top 20. It's interesting on two counts. Unlike some of our competitors, we don't have many key accounts in highly troubled verticals like travel or retail, so on and so forth. Also, LTI has always been well known for its ability. Just want your thoughts on what is happening here and this trend of non-key accounts actually offsetting the pressure in the key accounts and keeping the growth rates buoyant, how sustainable is this? Yeah. Sudheer, a good question. Look, top 10 accounts have seen impact. Some of them have seen impact due to COVID. Some are in oil and gas, as you probably know, and some are in the insurance vertical, where we probably have to perform a lot better in times to come. We have sown some seeds of that, bringing in new leadership as well. Look from the long-term perspective, we have always looked at them and these will peak going forward. If you look at five-year CAGR for top accounts, it's been pretty healthy. Top five accounts from FY16 to FY21 have grown at 8%. Top six to 10 have grown at 9.4%. 11 to 20% have grown by 13.2%. Please remember, we also, five years back during IPO time when we did roadshows, we also had a lot of concentration risk. I think that has been very consciously done. Reducing the concentration as well as growing large key marquee names in the world as customers has been the key theme. Recently, I think it is on account of COVID or oil and gas or insurance that you see the softness in our top accounts. We are extremely excited about the prospects of growth in all of them. Sure, Sanjay. Second question is on the top client. They seem to have announced some business restructuring and exit from some geographies and more such measures may likely come into picture going forward. Any sense you are getting, based on your discussions with the decision makers inside the company, about a potential sluggishness in decision-making activity, so on and so forth? Basically, I'm asking this because one of our competitor, let us say when one of their top three clients had gone through a similar transition earlier, they had seen almost three to four quarters of sluggishness in decision-making, eventually impacting their financials as well. Any thoughts on that front? Actually, it's exactly the opposite right now, with the top client has a very strong momentum on projects and there is no indication of it slowing down right now. Okay. Thanks, Sanjay. That's it from my side. All the best and take care. Thank you, Sudheer. Thank you. Participants, we would request you to please limit your questions to one per participant. For any further questions, you may come back for a follow-up. The next question is from the line of Vimal Goel from Union Asset Management. Please go ahead. Yeah. Thank you for the opportunity, sir. Sir, despite the salary hike, what I notice is your margin outlook for FY22 is quite similar to what you've been guiding, about 14%-15% range. Plus, you're also going to make certain investments. I just wanted to understand what are the offsets here. You spoke about some operational efficiencies that you had this quarter. If you could just explain those as well. What is leading to that? Secondly, on the insurance vertical, we've seen some softness. Is it industry-specific or is it client-specific? These are my two questions. Thank you. I'll ask to answer the second question. Anil, you could take a look at the first question. Insurance, by and large, if you look at the insurance companies, what they have faced in the last two years with the hurricanes, with the situations like COVID-19 now, has been tremendous. There's been a lot of strain. I will still say that while this industry is typically cyclical in nature and goes through up and down, but I must also, at the same time, agree that we have a lot to do by ourselves. With the win that we just announced this quarter is the start. It'll still take three, four quarters for us to get in full steam, but we are at the right direction at this point on insurance. Anil, would you like to answer the first question? Yeah, sure. Thanks, Sanjay. Surely I think what the guidance is coming is also coming more from operational efficiencies, which will move ahead. We will also look at areas in terms of transformation and also cost optimization. These things, I think overall when we work together will be actually guiding towards a better margin. Vimal, remember, growth is the biggest lever for margin improvement. Fair enough. Point noted. Thank you so much. Thank you. The next question is from the line of Sandeep Shah from Equirus. Please go ahead. Yeah. Thanks for the opportunity. Sanjay, just in terms of the new deal addition this time in FY21 from developed markets, U.S. and Europe, slightly lower versus what the peers were reporting. Is it as per your expectation or you believe the decision-making is slightly slower in our set of accounts and may improve going forward? A second question, generally, 1Q, we have a seasonality because of the accretion on pass-through revenues. Whether the same phenomena may continue in FY22 and just last thing on SG&A, it's at historic low of 10% while we are talking about investments. Whether it will go back to normal levels of 12%-14% over a period of time? You have mastered the art of asking many questions in one question now. Okay. Sudhir, why don't you answer the question on the deal wins? Yeah. I think, Sandeep, if I got your question right, you were looking at the geo-mix of the deal wins. Is that correct? Yeah. For FY21. Yes. I think if I look at the quality of the deals that we have announced in the regions, those are deals, a cloud-based transformation deal in [Dezert] case, and then the recent win that Sanjay spoke about in his opening remarks with his core banking transformation of one of the world's largest Islamic banks. Similarly, there have been some good, strong data deals that we have done in both India and the Asia Pacific region. I think if I look at the quality of deals, these were deals that we would happy to do in any part of the world. I think we saw good growth momentum or opportunities in these geographies, and that's the case. If you see overall, I think the percentage mix, U.S. still continues to have the same share of revenue for us and was also our fastest-growing region. I think in terms of pipeline also, if I look ahead, we will see that we are going to be in a similar revenue mix per geo as we've had over the previous years. Okay. Thank you. On SG&A and pass-through, Anil, would you like to answer the question there? Yeah. Sure. I think on SG&A, obviously, I think there has been an improvement in terms of our sales productivity. You're right, there is going to be an investments in sales and marketing. In this quarter, there have been some provisions which we no longer required in terms of expenses which we have reversed. That also has an impact here. In terms of pass-through, yes, you're right. It's the seasonal phenomena in Q4 which we foresee to continue. Okay. Thank you. Sandeep, just to summarize, we will continue, as we have said, on investing in sales and marketing. The nature of the business is also changing. As I talked about great restructuring, every customer, every industry, every vertical, every geography needs to be competitive in the new normal. The nature of business is also changing. We are at record number of open positions, record amount of work that we need to do at every single client today. Frankly, it's a supply-constrained environment definitely for us. Our focus is on getting the right sets of people on sales and marketing to influence and work and co-create the solutions with our customer. The kind of deals that we have done, obviously, in [Dezert] was really critical for the future of cloud. It's a great way of impacting a whole market in a meaningful way. The highlight for the year personally for me is the banking transformation on top of a phenomenal job done by the Syncordis team in creating this opportunity and fighting, going against the biggest players in the world to win that deal. We continue to stay excited for our customers and the pipeline all around the world. Okay. Thanks and all the best. Thank you. Thank you. The next question is from the line of Mohit Jain from Anand Rathi. Please go ahead. Sir, I have two questions. One is on this Europe thing. It appears that in terms of currency, our constant currency growth in Europe is more or less similar to the USD numbers for the quarter. Is there some client who is billing in USD, or how did we insulate us from this whole thing? Second was on intangible. There was some intangible increase on the balance sheet for FY 21. What is the nature of that intangible increase, and what should we expect there going forward? Anil, would you like to take that? Yeah, I'll take that. I'll answer the second question first. I think in terms of intangible, this is a part of the deal construct now, where we acquired a competitive deal, and that is the reason why you see a higher intangible which is in place in the balance sheet. On your first question, which you mentioned in terms of the European, I mean, in terms of the currency for the constant currency growth and the reporting currency. There are transactions which happens throughout the year. In certain point of time, I mean, over a period, the currencies may go weaker or stronger. On an average, if you see, you can say Euro has depreciated or appreciated. At a certain point of time when these transactions are done, possibly that could be the impact on account of reporting and the construct currency. On intangible, you are saying it is part of the payout which was done for the deal? Yeah, this is part of the deal construct, where we had done as a part of the competitive deal. This is the cash outflow, right? Yeah, it will be a cash outflow. Can you hear me? Yes. Hello. Is this the part of the cash outflow that has actually happened, or is it some customer contact or something that is sitting in that intangible? No. It is a part of the deal. There could be an accrual, there could be a payout partially. It includes both. All right, sir. Thank you. Thank you. The next question is from the line of Rishi Jhunjhunwala from IIFL. Please go ahead. Yes. Thanks for the opportunity. Two questions. One is regarding the reversal of the earn-outs that we have recorded in this quarter. Just wanted to understand which acquisition, what was the target missed, and why do you think that happened? Secondly, if you look at capital allocation for us, while our growth really continues to remain sector leading, capital allocation is probably at the lower end of where the industry typically operates at. We have really accumulated significant amount of cash now. It's almost INR 4,300 crore. Any intention to change the trajectory of capital payouts? Thank you. Sudhir, why don't you answer on reversal of earn-outs, and Anil, you can take capital allocation question. Sure. Sure. This reversal is on account of Syncordis and the asset that we had acquired in core banking. Let me just step back. LTI did not operate in the core banking space. This was an open, though BFS's largest vertical for us, industry vertical, we did not operate in this key space of spend in the BFS vertical. We acquired two assets, and now we are the second-largest player in the Temenos ecosystem. Let me first start by saying that the business case for this acquisition has been met. In fact, if anything, we built on that. We talked about the core banking transformation deal as announced in this quarter. We also announced a Temenos-based SaaS offering for the Nordics market. We've done some significant deals in Europe and Asia Pacific also on the back of that. The overall business case was met. In this specific case, as part of the acquisition, we had a base case and a special case. The base case has been met, and we were prudent, and we had made provisions as per the special case. I think if I look, that's the reason why the base case has been met, the special case has not, and therefore, there have been these reversals. Overall, the business case has been met, and if anything, we expect to see much stronger growth in this business going forward. Okay. On the capital allocation, let's understand. We are a young organization, maybe in terms of the IPO. We are just about five year old. Surely, we are looking in terms of our inorganic growth for good M&A opportunities also. Currently, you will appreciate we are also passing through a lot of turbulent times. Still, however, I think as compared to last year where the payout in terms of per share was INR 28, have been increased to INR 40 this year. We continue to be in the payout ratio as what we were in the last year. Okay. Thank you. Good. Rishi, we hear you. We hear your point. We'll keep looking at opportunities to do justice as always for all our shareholders on that. Thank you. The next question is from the line of Manik Taneja from JM Financial. Please go ahead. Hi. Thank you for the opportunity. I just wanted to check with you on the trends that we've seen around our revenue productivity metrics. This year we've seen an improvement in terms of offshore revenue productivity. If you could help us understand what's driving that. The second thing is that as we mentioned that we are in a supply constraint now, and given the current situation from a COVID-19 scare, do you think in the near term we could have some delivery fulfillment issues for the industry as a whole? Thank you. Nachiket, would you like to take this? Yeah, sure. Thanks, Sanjay. Manik, I think our offshore ratios, as you see, offshore productivity has gone up. As Sanjay said in his preliminary statement as well. All of this year we have seen a significant constraints on travel and all of those things related to COVID-19 impact. Hence, the acceptability of clients for people to work from where they are, as well as resources propensity to be based closer to their home location has made this change more acceptable. That's where I think you would see across the industry, the offshore ratios have gone up. Some of that we expect to stay, some of that will probably return as the things start to get normal, whenever it does. Also as regards to the supply constraint and our ability to serve. Actually, if you see from our numbers, we had highest hiring that happened in Q4 for us. We're seeing a similar traction going into Q1 as well. We have plans for our full-year hiring are also significantly aggressive, and we are able to fulfill those. I don't see from an industry perspective, the COVID-related things will have an impact on our ability to fulfill our clients' demand. Of course, based on the current wave 2 and some disruption related to that with individuals and so on and so forth, we see a better balance between onshore, offshore, and nearshore to also emerge in the long term as we continue to navigate through this crisis. Thank you, Nachiket. My question was related to the revenue productivity metrics and not the onsite-offshore mix. From an average revenue productivity offshore, that number has seen a significant increase this year. That is what I was looking to understand if customers are much more open to higher pricing given the constraints around travel. Nachiket, would you like to take or Sudhir, would you like to take this? Sure. Yeah. I'll take up point at pricing. I think what we are seeing is that if you just reflect back same time last year, right? We had a huge pressure on pricing, requests for discounts, in fact, deferment of payment terms, et cetera. Please look at the DSO in all of those contexts as well. Just coming back to the question, what we're seeing now is a more stable pricing environment and where there are, as we do more transformation deals, Sanjay talked about the demand that we are seeing in terms of the project-based demand that we are seeing. As per the projects in, for example, in Intelligent Enterprise Sales and in cloud sales, the price points are better than the outsourcing price point. I think as the mix of revenues also changes, we'll start to see that having an impact. Right now, I would say the pricing environment is stable, and we're focused on seeing how we service the demand. Thank you, Sudhir. All the best to you. Thank you. Thank you. The next question is from the line of Abhishek Shindadkar from Elara Capital. Please go ahead. Yeah. Hi. Thanks for the opportunity and congrats on good execution. My question is again on mining. We definitely understand that the five-year trajectory of top 5, 6-10 clients is very strong. If I look at the client metric, it seems that there is a little bit of pause in the $ 50 million and $ 100 million bucket. Any color in terms of what's hitting there and how do we plan to improve there on that metric? Thank you for taking my question. Abhishek, as I said, some of them are definitely hit by COVID. Some are oil and gas and probably our own doing. A little bit more needs to be done on insurance sector. The $50 million, $100 million, I think things will happen. We are broadening the base. We have seen good movement on $1 million, $5 million, $10 million, $20 million. I think if we keep going at the pace that we are going, you will see incremental additions on others as well. We feel good about the conversations that we are having with our customers, top 10 customers, top 20, top 50, definitely, and we'll see movements up there. Thank you, and best wishes for FY22. Thank you, Abhishek. Thank you. The next question is from the line of Sulabh Govila from Morgan Stanley. Please go ahead. Hi. Thanks for the opportunity. I had a couple of questions. First one is on the new client additions. We had talked about expanding our focus from Fortune 500 to Forbes Global 2000 accounts. Do you think that we can accelerate the pace, with which we have been adding clients in the last few years, which has been an average of 80, 90 clients annually? Do you think we are at a scale where meaningful acceleration from here on might be difficult? Any thoughts on that account would be very helpful. The second bit is on the ramp-up schedule of the deals that we've won this quarter, and whether the Injazat deal that we won in December quarter, that has fully ramped up. Those two would be my two questions. I'll take the first question. Your question was, can we expedite the new account opening, since we have moved from focus to Fortune 2,000? Very frankly, as I was talking about the nature of the business, which is changing, and all our existing customers itself, there is such a vast amount of work that we need to do across verticals to help them be competitive in the new normal, in the new restructured businesses globally. There is tremendous opportunities that exist there itself. Obviously we want to do justice to all the customers and their needs that exist today. That's not to say that any of our new account opening focuses will go down. If you reflect on this year also, we, I don't remember now, five or seven Fortune 500 customers we have opened. We have opened quite a few logos. At the same time, given where we are, we are also being very selective about the kind of work that we need to do for our existing customers. It'll be a balancing act. Obviously, if it's Fortune 5, Fortune 10 customers, we continue to go after that. Some of them take two years, three years to open up, and that's a work in progress and will continue to be there. With regards to your ramp-up schedule, Nachiket, would you like to take that question? For the Injazat deal that we talked about, I think that Sanjay mentioned in his speeches well that we had a slightly ahead of schedule ramp-up that happened in this quarter, but I think Q1 will be the quarter where we'll see full ramp-up of that deal. The other deals that we had announced last quarter as well, we are proceeding on the transition test plans. That also you will start to see from part of Q1, the ramp-up reflected in that, and probably Q2 will be the full ramp-up for those deals. Thanks. That's very helpful. Thanks for taking my question. Guys, I also want to mention a point here. While we are looking at all models of ramp-up for the customers, but some ramp-up is required at client site. With the situation in India, travel restrictions from many countries, as we ramp up some of these deals, we are seeing delays because countries have no travel policies for a period of time. That's what is giving us a little bit of uncertainty, nothing else. The ramp-up is there, confidence is there. We are starting a lot more work from offshore as we move along. Some of those delays are also the constraints are also coming for everyone and the entire industry overall. Yeah. Sanjay, just to build on that. We are seeing more broad-based growth, folks. Our $5 million bucket is up by 10, $ 10 million bucket is up by 8, and our $ 20 million bucket is up by 2 and all of this in FY21. Which I think that's a very strong achievement to broad base our growth, and that's something we'll build on in FY22 as well. Thank you. Thanks, Sulabh. The next question is from the line of Nitin Padmanabhan from Investec. Please go ahead. Hello, good evening, everyone. I had two questions, specifically. We've seen very strong hiring in the recent quarter, and I think you have alluded to very strong hiring next quarter as well. Does that mean that, one, the first half, which we have usually seen a seasonality of it being weaker than the second half, does that sort of change? Or two, is it that we are hiring ahead because of the tightening supply side that we're seeing today? That was the first question. The second one was around on the SG&A, the reversal in provisions that we have seen on the SG&A, is there any way to quantify what is the portion which is an operational efficiency that could continue going forward, and how should we sort of think of that from a margin context as we move forward? Thank you. Nachiket, do you want to take the hiring question? Yeah. I think as you look at our growth in Q3 and Q4 as well, we had two very strong quarters and a lot of hiring was done with that demand. What we are seeing in Q1 as well is some of those ramp-up of the deals that we had announced and what Sanjay also talked about, that continues. Our hiring is done as per that plan for the deals that we have already won and that we are ramping up and transitioning and executing. We're not hiring ahead of time for the future demand, but we are hiring in line with that. The only thing that we are probably doing is our fresh graduate intake that we normally do. That we are probably preponing it by a few months. Instead of doing that in Q3 and Q4, we plan to do it in Q2 and Q3 this year based on the overall demand picture that we see. Would it be fair to say that the typical sort of drop we see from Q4 from a growth perspective may not be as much as what we have seen historically? Is that a fair take? That is right. Okay, great. The second question was on the provisions on the SG&A that have come off this quarter. Anil? Yeah, I'll take that. Obviously going forward, in terms of SG&A, if you see normally in last three quarters, our SG&A has been in a band of about 12% in terms of our revenue. We will look roughly at that number or maybe lower than that because we'll be also leveraging on growth which we will be giving in. As we said, these are provisions which are in a normal course which has been done on account of prudence, where the benefit has been derived on Q4, which will be coming back to normal from Q1 onwards. Cool, thank you. That was very helpful. All the best. Thank you. The next question is from the line of Ruchi Burde from BOB Capital. Please go ahead. Thank you. Actually, my question was regarding the SG&A reversal, already got answered. Second question related to that is for Nachiket. In terms of utilization, you mentioned that you are not hiring ahead of time, just to fulfill the existing demand. Given the situation both on supply and demand side, and your company's aspiration is to be a growth company, what is a comfortable level of utilization where you would ideally want to populate? I think we are currently operating at a utilization that we believe we should be able to sustain if not improve as we go forward. We also feel is that utilization percentage is also a function of size. As we also become bigger, our ability to maintain the bench that is needed for our growth aspirations, if we are able to sustain that with the current level of utilization as we go forward. Okay, thank you. Thank you. Ladies and gentlemen, we'll take the last question from the line of Diviya Nagarajan from UBS. Please go ahead. Hi, thanks for taking my question and congrats on good execution in what's been a pretty challenging year. I think most of my questions have been answered, so I just have one clarification from Sanjay, your earlier comment on rate discussions with customers. Should I understand that customers are willing to move rates upwards because of the supply constraints, or it's something else that you were referring to? Diviya, I think rates are stable, pricing is stable. There are places we are looking at opportunities because of high demand. Cost is also higher to get the talent of these niche technologies. By and large, I would leave it at stable pricing right now. Got it. The cost of supply inflation then would have to be borne by service providers such as yourself and offset by efficiencies. Is that a fair assumption then? Look, margins for any year are part of a situational saving or a structural saving as well as we have seen in COVID-19. Situational saving like travel, et cetera, will come back. You have to be competitive to hire people in terms of the comp, and some of it will be adjusted with higher pricing as well. Right? I was talking about last year was all about a lot of discounts. This year, I don't want to preempt by saying we are able to increase the pricing, so we'll leave it at stable pricing right now. Our endeavor at the same time is also to keep the structural savings that we have been able to drive through higher offshoring, for example. That gives you the leverage and the lever for margin expansion in addition to the stronger growth in the marketplace. That is how we look at it. Got it. Thank you, and wish you all the best for the next fiscal. Thank you. Thank you, Diviya. Appreciate it. Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to Mr. Sanjay Jalona for closing comments. I'll close by saying thank you. We know so many of you over several years and appreciate the time and attention you pay to the company. We hope that you and your loved ones continue to stay safe. These are difficult times in India, and we need to support each other as we go along. Our prayers, our thoughts is with everyone in India, and we continue to stay committed to do the right thing for the society in addition to the businesses as well. Thank you for your time. We look forward to seeing you next quarter. Take care. God bless. Thank you very much. Ladies and gentlemen, on behalf of LTI, that concludes this conference. We thank you all for joining us, and you may now disconnect your lines.