Ladies and gentlemen, good day, and welcome to L&T Technology Services Limited Q3 FY 2022 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 touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Pinku Pappan, Head of Investor Relations. Thank you, and over to you, Mr. Pappan. Thanks, Viraj. Hello, everyone, and welcome to the third quarter FY 2022 earnings conference call of LTTS. I am Pinku, heading investor relations. To those of you who have joined from India, thank you for participating at this late hour. Our financial results, investor release, press release have been filed on the stock exchanges and are also available on our website, www.ltts.com. I hope you have had a chance to go through them. This call is for 60 minutes. We will try to wrap the management remarks in 20 minutes and then open up for Q&A. The audio recording of this call will be available on our website approximately 1 hour after the call ends. Let me introduce the leadership team present on this call. We have Amit Chadha, CEO, Abhishek, Chief Operating Officer, and Rajeev Gupta, CFO. We will begin with Amit providing an overview of the company performance and outlook, followed by Rajeev, who will walk you through the financial statements. Let me now turn the call over to Amit. Sure. Thank you, Pinku, and thank you all for joining us on the call today. First, let me wish all of you a very happy and prosperous new year and hope that all of you are safe and healthy. While many of us are still operating in a virtual environment, 2022 will hopefully be the turning point where the world will return to the new normal. With that said, let me start with key highlights of our Q3 performance. In USD terms, we had a sequential revenue growth of 4.2% in constant currency, which was broad-based across all five segments. In line with our long-term growth prospects and strategy, we've added a record 2,100+ employees in quarter three, which is the highest ever net add for the company. We also delivered an EBIT margin improvement to 18.6%, again, a new high. Our deal pipeline continues to see good addition. In Q3, we won a $45 million deal along with two other deals greater than $10 million. We also won two significant empanelments. The first with one of the world's largest technology companies, and the second with a global aircraft manufacturer. These empanelments mark the strengthening of our relationship with the customer as we become a preferred partner. We see potential of $50 million each in revenue over the next few years. Let me now provide a segmental performance outlook for your consideration. Starting with transportation, we had sequential growth of 5.1% led primarily by auto, followed by T&OH and aero. In auto, we are seeing a strong traction in e:HEV, the highlight being a $45 million deal we won with a U.S.-based auto tier one to be their strategic engineering partner for their electric vehicle portfolio. This is the third deal we are winning for this customer over the last three quarters, and the combined TCV adds up to $90 million +. As part of the latest deal, we are setting up an R&D center in Kraków, Poland, that will help us expand our global footprint as well as e:HEV delivery. In e:HEV, in addition to auto, we are engaged in high-end research projects aimed at expanding electrification to the heavy equipment and aero segment. At our EV lab, engineers are doing feasibility studies for high-voltage topologies. This gives us the ability to work on complex projects. Case in point being the complete design of a high-voltage electric powertrain for a U.S. trucks and off-highway customer, among others. In aero, the spend environment is seeing a gradual pickup with spends in areas like digital platforms and solutions for traditional OEMs and electrification and hybridization for new-age innovative companies leveraging alternative propulsion technologies. Summing up, we expect the growth momentum to continue in transportation across all three segments. In plant engineering, we had a good quarter with 4.4% Q-o-Q growth driven by FMCG and oil and gas, followed by chemicals. In oil and gas, we see a good pipeline of opportunities in establishing high-value engineering centers for our customers. We are also in early discussions with our customers on priorities like alternative energy, carbon capture and product mix changes, all of which are choices that are required to make significant engineering-led transformation of the business. In FMCG, demand is being driven by CapEx, both greenfield and brownfield. We won a large deal with a global CPG major for their greenfield expansion in Europe, and we are looking to support their expansion in Americas as well. Under our sustainability big bet, we are working on a few innovative solutions. For an oil and gas major, our plant engineers recommended engineering design changes across the re-refinery value chain from valves, HVAC pumps, process treatment to ensuring compliance with existing and probable future government regulations, while at the same time minimizing disruption and downtime to existing operations. We believe with tightening of regulations post COP26, we will see much more of these engagements across geographies in the coming years. We are positive on the outlook for plant engineering and expect steady growth. At industrial products, we had a soft quarter, although we continue to scale up our engagements across all three sub-segments, electrical, machinery, and building automation. There is good demand for platform development, digital twin, and smart services, as customers are wanting to leverage data and analytics to transform their business. In one of the large deals that we won in Q3, we will use engineering data analytics to develop a software platform that will improve the customer's manufacturing process lines. We are having conversations and early deal discussions in the areas of energy transition and storage, as well as sustainability. The deal pipeline continues to improve, and we expect industrial products growth momentum to pick up in the coming quarters. In telecom and high tech, we had a good quarter with 4.7% Q-on-Q growth led by semi and telecom infra. We are seeing a good set of opportunities in the 5G space with our marquee customers and partners to take advantage of huge spends coming up on integrating various network components and implementing AI solutions as the 5G network gets deployed. In semi, we are seeing a pickup in new chip design work, especially in the 7 nm technology area. In high tech, a key highlight is our empanelment as a preferred engineering partner to one of the world's largest technology companies. This is a very promising development which should give us an opportunity to work on a wide portfolio of products and devices. In media, we continue to look at margin expansion. We will not be renewing few programs in the legacy areas. This is in line with our objective to improve telecom and high tech margins by focusing on more value-added part of the value chain. Let me highlight one of our investments in solutions. Our engineers have designed a lightweight, small form factor sensor that works on advanced 5G communication and optimal for deployment in industrial mesh networks. Such innovation is possible only because of the multi-discipline expertise in our company, where we combine 5G and NB-IoT solutions, chip to cloud competency, and Industry 4.0 knowledge. Overall, the demand pipeline is building up quite well in telecom and we are winning deals. However, Q4 telecom performance may be muted because of the actions we are taking in the media sub-segment to sustain growth and expand margins for the entire segment. Lastly, in medical. Medical continues to grow, led by strong spending in digital platform and connectivity areas. We have built solutions in the digital robotic surgery space, which is finding good traction in the market. Many customers have drawn roadmaps for robotic surgery, and we are participating in such discussions. I am proud to share that our engineers, in collaboration with IIT Madras, have developed a sepsis detection device based on a microfluidics infection management platform. This is a portable device for real-time patient care, which is an area where many of our customers are investing in, including telemedicine. To sum up, the demand strength continues to be robust, and we see the pipeline improving in medical. Now a few highlights on our digital engineering and technology progress. Our digital engineering revenues were 56% in Q3 versus 55% in Q2. We see this trend continuing. On the innovation front, our engineers continued to innovate and filed 25 patents in Q3. Most of these filings are in collaborative and intuitive spaces in digital. We recently won CII's prestigious innovation award of top 25 most innovative companies across all sectors in India. We see this as an endorsement of our focus on technology and engineering innovation through differentiated solutions and offerings. Let me give you an insight on one of the initiatives we are taking to build next generation solutions. Our AI solution, AiKno, is now an integral part of new product development. For example, it has helped in enabling faster and accurate medical device compliance with FDA. We are investing in R&D for the next version that will leverage embedded AI. Now talking about our talent scale-up. We have substantially increased the trainee intake 1,900+ in Q3, which augurs well for the growth prospects that we see in addition to helping us optimize the pyramid and manage attrition. We are able to achieve this scale by leveraging our Global Engineering Academy that is focused on continuous training and upskilling. Let me now discuss the outlook. Our deal pipeline continues to see healthy addition and the demand outlook in U.S. and Europe remains strong. We continue to invest in our six big bets, which will allow us to participate significantly in our customers' transformation journey and win large deals. Attrition is a parameter we are keeping a close watch on, and we've taken several measures to address it. We do see attrition stabilizing from quarter four onwards. Finally, I am happy to reiterate that we are on track to meet our FY 2022 revenue growth guidance of 19%-20% in U.S. dollar terms. That said, thank you. I hand over to Rajeev, and we will take questions after he completes. Thank you. Thank you, Amit. I wish you all a very happy new year and hope you and your families are keeping safe and healthy. I'm pleased to share our Q3 FY 2022 performance. It has been another quarter of strong results with improvement across all parameters, revenue, EBIT and PAT. With that, let me take you through the Q3 FY 2022 financials, starting with the P&L. Our revenue for the quarter was INR 1,688 crores, a growth of 5% on sequential basis. Our double digit year-on-year growth trajectory continues with Q3 revenues up 20% on year-on-year basis. We touched a new high on EBIT margin at 18.6%, making it the sixth consecutive quarter of operating margin improvement. During the quarter, we had gains from operational efficiency measures, including pyramid optimization and rupee depreciation. This was partially offset by lower utilization and higher travel costs. Moving to below EBIT. Other income was higher on sequential basis due to the dip in Q2 because of the one-time reversal of SEIS income. Effective tax rate for Q3 was 26.6%, broadly in line with our full year ETR expectation of between 26.5%-27%. Net income for the quarter stood at INR 249 crores, which is 14.7% of revenue, up 8.2% on sequential basis, driven primarily by higher revenue and operating margin. Now moving to balance sheet, let me highlight key line items. DSO was 84 days at end of Q3, one day improvement over Q2, while unbilled days increased to 21 days in Q3 compared to 15 days in Q2. The combined DSO, including unbilled, stood at 105 days, which is above our target range of less than 95 days. We expect improvement in the coming quarters. Let me talk about cash flows. Our free cash flow improved to INR 725 crore for year to date, a healthy 104% of net income. Our cash and investments rose to INR 2,143 crore by end of Q3 FY 2022. On capital return, I am pleased to share that the board has recommended an interim dividend of INR 10 per share, taking the total FY 2022 dividend so far to INR 20 per share. Moving to revenue metrics. On a sequential basis, dollar revenue growth was 3.6% in reported terms and 4.2% on constant currency basis, with all five segments growing as highlighted by Amit. Growth was led by transportation, telecom and hi-tech and plant engineering segments. The segmental margin performance was better in two out of five segments on a sequential basis. As Amit mentioned, in telecom and hi-tech, we will continue to look for margin expansion by reviewing the portfolio of deals. Now let me comment on operational metrics. Utilization was at 75.9% in Q3. This is because of the strong net addition done keeping in mind long-term growth prospects and pyramid optimization. Going forward, we expect this to gradually move up to stay within the 78%-80% band. The onsite-offshore mix has shifted slightly towards onsite due to the delivery initiation of new deal wins. Offshore percentage now stands at 58.7% versus 59.2% in Q2. The T&M revenue mix increased to 71% in Q3, and it's likely to stabilize around these levels. Client profile, which indicates number of $1 million+ accounts, has shown a sequential improvement in $30 million and $10 million+ categories. The client profile numbers have seen an improvement over the past few quarters. This trend will continue in the coming quarters. Client contribution to revenue. We've seen improvement in the top five and top ten clients. Headcount increased sequentially by 2,135 employees to end at 20,118 employees, while attrition moved up by 100 basis points to 17.5%, reflecting the industry-wide trend. We are proactively taking various employee engagement measures to contain attrition. Realized rupee for Q3 was nearly 75 to the U.S. dollar, an adverse movement of 1.3% versus Q2. Before I conclude, let me give some visibility on the EBIT margin trajectory going forward. Our aspiration is to maintain a sustainable 18%+ EBIT margin consistently, and we will balance the likely headwinds such as intermittent wage hikes in a high attrition environment, higher travel costs with levers such as growth, quality of revenues, and operational efficiency. Thank you, and I wish you all a safe and healthy 2022. Moderator, we can now take the 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 their 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. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. Participants are requested to restrict to two questions per participant. If time permits, please come back in the question queue for a follow-up question. The first question is from the line of Mukul Garg from Motilal Oswal Financial Services. Please go ahead. Thank you. So Amit, just wanted to start off, you know, with the impact of the macro which you have highlighted. You know, can you help us quantify what impact it can have on Q4 revenues? I'm just trying to understand these factors behind the lower end of the guidance, you know, which you have maintained for FY 2022, because it implies less than 2% Q-o-Q growth. Or is this just a case of you keeping it unchanged, irrespective of the macro impact? Mukul, we had come out last quarter. As you're aware, every quarter we've continued to provide you an outlook as close to what we would be able to do. When we give you the outlook of 19%-20% revenue growth in U.S. dollar terms, we had factored this in, that we may have to take this. We were not sure at that time, but we were thinking we may have to take the action. I would stick to the 19%-20%, and leave it there for now. I can assure you, like I have told you in the past as well, we continue to work and strive to see what best can be done. Please do not take the lower end. Fair enough. The second question was on the demand environment. You know, have you seen any movement either up or down in, you know, during the quarter? The employee addition obviously was really strong, but at the same time, you are also seeing attrition stabilizing. How should we see the employee addition vis-a-vis the demand environment? Will it continue to ramp up at this scale which we have seen this quarter, or should we expect it to ease off? Mukul, I do believe that the demand in CY 22 is robust and early signs are very encouraging as we see it. I'll give you three data points, right? When this $45 million win that we talked about that we have had, this is actually the third win from the same customer in three quarters. If I total it up, it is more than $90 million of net new win from a single client, right? Close to the $100 million we had signed in December two years ago, right? That's just one data point. Second is that we have taken about 3,000 freshers now, right? 1,100 + 1,900. We will take some more in quarter four, but the big haul will again start in quarter one or quarter two onwards, depending on when the students come out of college. I can confirm to you that the plans right now are to have similar intake of of freshers in FY 2023 as FY 2022. The second data point. Third data point is that we are excited about setting up Kraków, Poland, and we are saying we will potentially ramp up to about 300 people in three years in that location, maybe more. I do feel the demand in transportation, the demand in industrial, demand in telecom with 5G and sub-7 nanometer coming along, the demand in medical, the demand in plant with product changes, et cetera, will continue as we move forward. Thank you. The next question is from the line of Abhishek from InCred Capital. Please go ahead. Yeah, hi, sir. Thanks for the opportunity and congrats on a good execution. You know, I'm just trying to understand that it seems that you know, pyramid rationalization has probably impacted our growth, it appears so. Could you just elaborate you know, whether the understanding is right? Was it typically in any particular vertical? The second question is this rationalization of pyramid happening more in the you know, in the telecom, high-tech space and you know, with many freshers getting onboarded, is there a scope or you know, there is a good margin lever both in the segment as well as at the aggregate company level? Thank you for taking the questions. Abhishek, there are two or three parts here. There is no pyramid rationalization that is happening, right? What is happening is, Abhishek, there are two or three things. When we went through a very bad patch, and we had not taken freshers, number one. Number two, and I had shared this maybe last time or the previous time, we do want to improve our fresher intake so that we can, one, broad-base the pyramid and make it the right pyramid, right-size it. Second is that, you know, a lot of times people say innovation stops at 30, some people say 40. I say it never stops. People say, so you get younger workforce, it gives you newer ideas, gets you new talent, et cetera, right? Fourth is that it gives us the flexibility that we need and some kind of attachment. So I would not put it as pyramid rationalization. I would more put it as newer areas, newer technologies, et cetera. It gives us an opportunity to refresh. Having said that, we are also hiring laterals, so it's not like we are not hiring laterals. What you should keep in mind is, though, that quarter three is always impacted, one, by the number of working days. This time, you know, there was Diwali, extended Diwali, and then there was Thanksgiving, there was New Year. So all of that in the same quarter, right? Second, so number of working days, vacations that people took, right? That is again seasonal with it. That's how I would look at it more than anything else. I am confident, I'm fairly bullish about, as I look at quarter four and beyond. That's helpful, sir. Could Rajeev just comment on the, you know, recovery on the margins, as the regular finish would be? Abhishek, to understand your question, I mean, of course, we've improved margin, right? Our EBIT is now at 18.6% in Q3 relative to 18.2% in Q2, right? There's an improvement. I think going forward, as I said, our aspiration is to maintain a sustainable 18%+ EBIT. There are always going to be factors which are the headwinds and the tailwinds to manage. In terms of the tailwinds, growth and quality of revenue, I think productivity improvement and operational efficiency, this is something that we've been talking over the past four-five quarters, and you've seen EBIT improving over the past five-six quarters, and we will continue to do so using operational efficiency as one lever. On the headwinds, I may have mentioned this in the past earnings calls also, with improving economic recovery, we'll see more of travel and facilities-led spend come. It indeed has been a high attrition environment. We will see these wage hikes, right, to manage some of the attrition that we are seeing in the recent past and of course, going forward for a few more quarters. Last of all, the organic and inorganic investments. We're an innovation-led company, so we will make these investments. Those are the headwinds and tailwinds that we'll manage. Having said that, we have shown consistently over the last six quarters an EBIT margin improvement. Thank you. The next question is from the line of Apurva Prasad from Elara Capital. Please go ahead. Yeah, thanks for taking my question. Amit, can you comment on the large deal pipeline? You did highlight the $47 million deal, but are you seeing any deceleration in the large deal pipeline? I ask this as I look at the number of $10 million+ wins. It just seems to be tracking lower over the past couple of quarters. So I just tie this to the midpoint of the Q4 guidance. Your perspective would be helpful here. Apurva, we have not seen any deceleration when it comes to deals and pipeline. In fact, pipeline has continued to improve quarter-over-quarter. Okay? In fact, if anything, I see that going up. I acknowledge the number of $10 million deals in quarter three have been lower than quarter two. I do believe that quarter four onwards, you will see some of that come back up, if you ask me, Apurva. There were some of these decisions that moved beyond December to January. I am talking to you with the wisdom of January that has passed so far, that you will see that coming back. That's helpful. My second question is on medical devices. Any additional comments here? The context really here is that it again seems to be slowing down versus prior period growth rate. Also if I look at competition appears to be, you know, probably gaining share out here. Also since I've missed any specific mentions in the key deals in this segment. Your comments here would be helpful. Apurva, it's more to do with our clients' programs and the life cycle they are in, right? You know, as that changes, things continue to change. In fact, the good news is we have added a couple of very marquee logos in the last three quarters in this space that will see more expansion as we move along. See, one thing that we have done differently this quarter you will notice is that we have called out empanelments separate from deal wins. The reason we have done that is that the client is not willing to commit to a sizable volume, but say this is a potential. We turn that into, we call it an empanelment. Where there is a committed, you know, there's almost a confirmed revenue, but he's not willing to sign the dotted line. He says that this is my estimate. We've seen some smaller ones in medical, but I do believe that as we move forward, this will start coming back. Some of the differentiated assets that we have built up in sepsis detection, be it digital front door, be it Chest rAI, as well as some Quartus Thank you. The next question is from the line of Vibhor Singhal from PhillipCapital. Please go ahead. Yeah, hi. Amit, thanks for taking my question, and congrats on a good quarter. Amit, a couple of questions from my side. First of course is the revenue growth in this quarter was tad on the softer side versus our expectations. I know we understand we have very high expectations from you, from the company, which you tend to beat every quarter. Were the numbers in this quarter also slightly miss on your expectations too? If yes, there are any specific reasons that you would like to call out for that? Vibhor, there are two things here. One is just 4.2% constant currency, you know, we have tried to maintain that we will be in that range as we move forward, so we've done that. Of course, compared to 5.X%, it is lower, right? But Vibhor, there is two realities in our business that you will see over and over. One is there is this quarter three, where the number of working days are lower than quarter two. You know, if Diwali, Thanksgiving and or Dussehra and Christmas come in the same quarter, it's a double banging, right? I mean, I'm not saying we should not have festivals, but maybe better off doing it in two quarters than one quarter. That is, it's a reality, right? People still want. Second, we were tracking the number of leaves people have taken, Vibhor. One way is happy people are taking leave, work-life balance. The reality is the number of people that took leave in this quarter three as opposed to last year quarter three was higher. It's a one-time impact, right? People who do that, take leave, they'll be regenerated by the time they come back, right? Also, those are the two points that I would say. We continue to strive for performance that will get us to that range of growth, right, profitable growth, as we move forward, and that's been our continuous endeavor. One more thing and I didn't answer Apurva. I thought I'll mention it also again. See, one thing we are also seeing is in some of the cases, like in this particular client that gave us this deal of $45 million, and the previous two were about almost you know 50. That total was about $90+ million. They broke the deal up in three parts. That is a reality in our industry, where people do that. Though we continue to strive for $50 million+, $100 million+, this is a reality in our business. Those I didn't answer it, so I said I will answer that. Vibhor, to answer your question again, I believe that you know we looking at the seasonality, I think we did well. I am confident of delivering the guidance that we talked about in the last quarter. Then we look forward into FY 2023. The freshers we have hired, 3,000 in this year so far, we'll hire more in quarter four, I do believe are a signal that we are fairly comfortable with our growth prospects in the next year. Got it. Thanks a lot for that. My second question was actually if I just, basically, want you know to basically pick your brain on the performance that we had in this quarter or let's say where we are today vis-à-vis where we were pre-COVID. Let's say if I look at this quarter's revenue around $225 million, and if I go two years back, around eight quarters back, Q3 FY 2020 when COVID had not struck. We are ahead of that number by around 13%. If I compare the vertical wise, I think our industrial products, telecom as well as medical devices have grown much beyond what the numbers were two years ago. Our revenue in transportation and plant engineering today is almost at similar levels as it was around eight quarters back. I know these are the two verticals which are probably the most impacted because of COVID. Would you just maybe quickly take us through basically what is the composition of the revenue? How is the composition of the revenue different at this point of time? If I look at it, transportation was let's say around $71 million then and today as well. How is that, this $71 million different from that in terms of let's say maybe higher exposure to auto than aerospace? A similar kind of about the breakup if you could probably show for plant engineering, which is probably at around $34 million, which was almost a similar number around two years back. Very well put, I should say that, because, you know, I continue to have a chart here in front of me where I say who recovered when. I think you've done a very good job in putting that. Let me say this to you. See, you are right. PE and transportation have finally come back, right? Like you said. See, the color of transportation, let me start with, has changed. There was not so much of electric. There was not so much of connected. There was a lot of infotainment at that time. The amount of electric and the amount of connected revenue that we are generating is higher, number one. Second sub-bullet to that is that the hardware software work that we are doing now is higher now as opposed to pre-COVID. That is another reality that we have seen, that has happened. Third is in terms of sub-segments. You know, aero fell very badly for us. There's more of auto now, there's more of T&OH now than all aero. I mean, if you look at the same composition. Having said that, you know, with this empowerment we've had in aerospace plus other deals we are working on newer technologies in aerospace, I believe that that cylinder should also fire going forward. Okay. Now, if I go to plant engineering, the revenue that you saw pre-COVID, there was a lot of oil and gas revenue in that, right? Now if I look at the revenue, and there's oil and gas, chemicals and then CPG. Now if I was to separate it out. There is CPG, oil and gas, and chemicals. Oil and gas has come back slightly, but not to the level where it was. That's the difference in composition. There's a lot more, plant re-engineering, capacity expansion, I wanna call it. What is the right word to use? Product mix changes, kind of plant engineering work, corrosion testing and corrosion value analysis work happening, as opposed to what was pre-COVID. There's a little bit of a change. You are right, and that's what we have seen. Going forward, I do see these, oil and gas coming back. I do see as well chemicals and CPG growing as we move ahead. Thank you. The next question is from the line of Vikas Ahuja from Antique Stock Broking. Please go ahead. Hi, Amit. Congrats on a good quarter and execution. My question is: how should we read the hiring numbers? You know, for the second quarter, second consecutive quarter, the hiring is much higher than the growth. Is it the strong demand you foresee and you want to have enough buffer, and obviously, you know, training pressure also takes time? Or we are expecting attrition to remain elevated for some more time? Vikas, hiring is higher because with couple of things we are to be looking at, right? One is we are trying to broad base the pyramid, and we are planning for future growth. I mean, that's how I would put it as number one. Number two is the kind of skill set required for our future will be slightly different from what was there two years ago, so we're refreshing that as well and getting ready. That's broadly it, where we are. I should tell you in advance, the net hiring in quarter four will not be as high, as I'd shared in the last earnings call, that we will see a one-time big jump in numbers in quarter three. That was the plan, the way we had done it. Now you should probably see a jump, similar jump in maybe Q2 of FY 2023. We've created a full plan, operational plan to take it forward. Sure. Thanks, Amit. Initially you made a comment around some partnerships. Sorry, I completely missed that. You said there are a couple of partnerships which have a potential size of INR 50 million. If you can just repeat that. There were two things I talked about. One was that there are two empanelments, one with a big technology company to work with them on hardware and software of their devices that they're launching. The second one is an aerospace OEM, where we've signed a partnership, a customer-vendor contract to be one of their primary vendors, as they move forward. Both of these, we believe, can give us $50 million each the next few years. Those are two empanelments. Then I also talked about partnership that we announced, I think, about maybe a month or so ago. We announced a 5G partnership with NVIDIA, Mavenir and us. That is what I was alluding to, and that is in the areas of O-RAN and 5G, where we are setting up a lab in Munich around test cases for the discrete and process manufacturing segment. That was the partnership. There's both of those. Thank you. The next question is from the line of Vimal Gohil from Union Asset Management. Please go ahead. Thank you for the opportunity. Amit, my question is a reiteration of what Apurva asked on medical devices. It is an extension of that, really. If I were to observe your margins in medical devices there, probably 25%-30%, do we have any scope of leveraging these very high margins in order to be slightly more aggressive and give some preference to growth here? That's my first question. The second question is on autos or the transportation. Within transportation, we have autos. I wanted to know, would it be fair to say that a dominant portion of your automotive mix would be OEMs and you know, Tier 1 suppliers would be a smaller portion there? Lastly, just wanted to reiterate your guidance that you gave in your recently concluded Analyst Day of reaching a $1 billion run rate by 2023 FY 2023 and $1.5 billion run rate by FY 2025. Those stay intact? Those are my three questions. Thank you. Thank you so much, Vimal. I'll answer the last question first. That is my favorite. I am unequivocally reconfirming that LTTS will get to a billion-dollar run rate by Q2, Q3 of FY 2023, and get to $1.5 billion as stated in our guidance in the earnings, in the Investor Day. No change. Absolutely no change. I'll answer your second question. Second question was transportation. Transportation, Vimal, we are working with OEMs as well as Tier 1. It's a mix. See, what's happening is that as, you know, people have got into electric vehicles and connected vehicles now, there was work that three years ago they would farm out to a Tier 1. They picked that up themselves. Earlier, they used to only do integration. Now they also deliver key components. They may actually say, "I will do the platform, let the detail be done by the tier one." The kind of work that a OEM and a tier one is doing is changing. The skills are almost the same. I can reconfirm to you that there is a healthy mix of OEMs and tier ones that we work with. In fact, we work with marquee customers in both of those areas, right? That's earlier, potentially, maybe, and you know, Abhishek here is helping me here. He says earlier software was at about 50%. Mm-hmm. Now software work has gone to 70%. That is a change for us. With Abhishek's background, from where he comes from, I think he's been driving this himself with our leaders in the transportation segment. Right. Now go back to the first question on medical. You know, I mean, like I talked about the sub-segment of MedTech where we tried to see if we could improve margins, and we finally felt we could not, and we, you know, we have taken some judicious calls. In the medical area, we are working with all the marquee customers. I mean, you name a top OEM, we work for them. It is just. It takes a little bit of time, and that's all there is to it. It is also the youngest of our verticals and still being nurtured. I mean, if I go back to 11 years ago when I joined this company, or 12 years ago, we nurtured automotive, we nurtured aerospace, right? I mean, Dr. Panda was very, very passionate about this area, and he nurtured that. Similarly, we are nurturing medical at this stage, so I would not read too much into this at this stage. Thank you. Participants, you may press star and one to ask a question. The next question is from the line of Salil Desai from Marcellus Investment Managers. Please go ahead. Thanks. Amit, you know, could you talk in a little more detail about this automotive tier one, where you are now $90 million of core business, three deals over the last 12 months or so. A little more about the journey, you know, what did you guys do to keep getting a larger share of business? Are these like similar projects or projects like upstream or downstream of what you were doing originally or completely new areas? And whether it was, you know, maybe to replace or displace some other vendors, just about anything about that relationship would be good to know. Sure. Salil, this particular tier one automotive that we're working with, we had been working for them for some time but in a much smaller scale. They had known of us from the industry, right? Small world, they had known of us. When we invested last year in our big bet EACV, we actually set up our EV lab. I remember we did a press announcement, et cetera. Anyway, everybody looks at LinkedIn all the time. We did all that. As a result of it, we got inbound inquiries around power management, remote diagnostics, charging infrastructure, onboard electrical stuff, that people talked to us about and said, "Is that something that you would be able to do to help us?" Right? Do you have, you know, the wherewithal and the people available?" There was some model-based design work they wanted us to do. There was software work they wanted us to pick up and said, "Can you do it?" With the Global Engineering Academy that we had got on upskilling our and reskilling engineers, we went in and spoke to them, we showed them the result. They said, "Okay, why don't we give you a part of the product that we are developing, and why don't you try it out?" The first deal I think was Yeah. About $25 million they gave us. They said, "Why don't you see what you can do, and let's see the results." For about three months, we wrapped up the team. We had the team ready. We had made some investments and, you know, got some people ready. We deployed them. They saw the work. As we were ending, coming to month three, they actually signed another deal, similar size. They said, "Now we want you to look at the power management side." They're a little more tough because you will cover topology, et cetera. They said, "Let's see you try and do that work." That again, we've been able to help them and be able to expand in the software area. Once we had done that, you know, I had a hidden agenda, if you ask me, that I wanted to set up something in Eastern Europe. If some of you remember, we had talked about it a number of times, that we should develop something either in Ukraine or we should develop something in Poland, or we should do Hungary. You know, I remember some of you had been asking these questions, and we had been saying we are looking at it. As we developed this relationship, we sat down with them and we said that, "Look, we're trying to develop something in Kraków, Poland. We know that you're trying to set up your own center. Why don't you let us do it for you? And we'll take the responsibility, we'll develop it for you, et cetera." One thing led to another. Wonderful. They signed this deal with us. Already we've hired the first set of people. The head of the Poland center has been hired, a local. In Kraków, location has been identified. People have been made offers. Some people have joined as well. It allows us to be able to, you know, shall I say, address two points at the same time. One, expand in Eastern Europe. That will help us overall in with European customers and U.S. customers. Second, expand the EACV footprint. I believe that's how this has progressed forward. Again, we continue to pursue this and others. I also wanna make another point. Somebody asked a question OEM and tier one. See, around 18 months ago as COVID hit, we took a calculated risk and said, "Let's go after the new autonomous companies because they will expand." We set up added infrastructure, people, as well as capabilities in the Bay Area, and that has helped us sign up some new age auto companies. That again is like a, you know, Chakravyuh. It's helping us with the tier ones because we have the credibility and the names, and it's helping us with the competency with OEM. It's a win-win game. Long answer. Yeah. That's very useful. Thank you so much. Thank you. The next question is from the line of Sandeep Shah from Kotak Securities. Please go ahead. Sandeep Shah, may I request you to go ahead with the question, please. Sandeep, can you hear us? Yeah, I can hear you. Can you hear me? Yes, sir. Now we can hear you. Yeah. Thanks for the opportunity, Amit. Just further to the last question, wanted to understand this three deals which combined to a TCV of $90 million. Just want to understand how sticky these deals are. Is it once the platform being launched on an EACV, some portion of these revenues will go off or do you believe even after the platform launch there would be requirement in terms of some amount of verification, upgradation, maintenance, which will help you in terms of maintaining these kind of a revenue with a new age area on the EACV as a whole? Second, who are the competitors in terms of getting these kind of deals, within your space? The last question, in terms of the media portfolio restructuring, do you believe it will have a bigger impact in FY 2023, or it doesn't, won't have a big impact to disappoint you as a whole? Sandeep, let me answer the two questions, and I'll ask you to repeat your third one. Number one, are these deals sticky? You know, Sandeep, we believe in relationships, right? We don't call our account managers account managers. We actually call them relationship managers, right? Now it takes time to build credibility, right? Because you're finally going in, you're trying to do engineering, core engineering, ER&D, it takes time. You know, the 25 million, the first two, $25 million each were over a three year period. This one is $45 million in five years. As you can see, and they are already talking about trying to see how will they continue on and on because, see, if you look at the EACV segment now, you are not talking about developing, say, one particular area and then getting out. All right? I mean, there are different components that have to be built. They keep on coming out with newer products. Maybe they'll start with chargers, then they will go to alternators, they may go to inverters, they may go to, you know, a better, you know, battery charging. They may go to other things. They continue to come up with newer products. We are not signing these deals just to develop one product. It's a family of products. We believe that these are sticky, these continue. In fact, case in point, if you look at our client pyramid, it has improved over the last quarter. I can assure you next quarter also it'll improve. These are sticky relationships that get built over a period of time, and knock on wood, they continue to expand, right? That's how I would say. Competition you add, you know the usual suspects. I'm sure you know, we all know who plays in the automotive space. There have been companies. What they definitely saw in us, which I will definitely mention. I don't want to talk about what others do because everybody has a business to run. I respect competition. In that, you know, the EV lab that we set up, the kind of technology areas we invested in, have helped us in terms of winning this. I would say equally important to the relationship that we've been able to develop. Can you repeat your third question, Sandeep? It got lost. Yeah, yeah. Just in terms of the media portfolio restructuring, which you called out starting from Q4, will it have a bigger impact in terms of a growth shape in FY 2023 or it won't have a big impact? No, it's a single quarter impact. We're taking it on the chin, moving forward. It will not have an impact on FY 2023. Okay. Thanks. Thank you. The next question is from the line of Sudheer Guntupalli from Kotak Mahindra Asset Management. Please go ahead. Hi, Amit. Thanks for taking my question. How do you read the quality of growth during this quarter? If I exclude the strong growth in the Indian geography, the rest of the portfolio growth over there seem to be little underwhelming, especially in the core geographies like North America and Europe. How do you read it? Anything happening in these geographies and anything that happened in this particular quarter or it's just some sort of a blip? I should say, Sudheer, that our North America and Europe revenue actually grew very well. ROW for us has been very soft. I think what you are referring to is a billed currency and that's how we do it. If I look at the growth that we have had, our North America geo has done very well, Europe has done very well. It's basically ROW, if you ask me, the India part where it's been very soft. It's the other way around, and we'll be confident to these geographies as we move forward. No, I'm just looking at the sequential growth in constant currency terms. I understand year-on-year growth rates are very high. In this quarter, it seems to be largely driven by India, and the other geographies don't seem to have contributed in a large way to the overall company growth. Sudheer, it's more related to, and maybe you can do a follow-up with Pinku later on this. This is more to do with billed invoices from where it came from more than anything else. Sure, sure. It's okay, Amit. Thanks. Thank you. I now hand the conference over to Mr. Pinku Pappan for closing comments. Thank you all for participating in our earnings conference call for the third quarter. We hope we have answered most of your questions. Please write to me in case you have any queries. Wish you a great day, and we will end the call here. Thank you. Thank you very much. On behalf of L&T Technology Services Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.