Ladies and gentlemen, good day, and welcome to L&T Technology Services Limited, Q2 FY24 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there is an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this call is being recorded. I now hand the conference over to Mr. Pinku Pappan, Head of Investor Relations. Thank you, and over to you, sir. Thank you. Hello, everyone, and welcome to the earnings call of L&T Technology Services for the Q2 of FY 2024. I'm Pinku, Head of Investor Relations. Our financial results, investor release, and 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 we'll wrap for Q&A. The audio recording of this call will be available on our website approximately 1 hour after this call ends. With that, let me introduce the leadership team present on the call. We have Amit Chadha, CEO and MD; Abhishek, COO and Executive Director; Alind Saxena, President, Sales, and Ex ecu tive Dire ctor; 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 performance. Let me now turn the call over to Amit. Sure. Thank you, Pinku. Happy Navratri to one and all. Thank you so much for joining us on the call today. With that, let me start with the key highlights of our Q2 performance. We grew at 3.2% sequentially in constant currency. The growth was broad-based after four quarters, with all segments growing sequentially. Transport and Plant Engineering led the growth with around 4% growth each. Our deal wins were strong, seven deals of $10 million+, of which six were $15 million each, above, 15 million each. We also had two significant empowerment deals. Like our growth, the deal wins were also broad-based in nature. Our operational performance continues to be healthy, with EBIT margins at 17.1, nearly flat on sequential basis, even as we absorb the wage hikes of our employees and investments into, capability building. Let me now start and provide a more detailed segmental view and outlook. Starting with Transportation, we had a good quarter with 4.4% Q-on-Q, with all three subsegments, auto, trucks, and off-highway and aero growing. Similar to our investment in EV two years back, we are accelerating training and capability building in SDV or Software-Defined Vehicles to take advantage of the next wave of spending. Automobiles will require an architectural transformation as processing shifts from multiple domains to a central high performance and compute architecture under SDV. We are partnering with U.S.-headquartered chip makers to build these next-generation chips and software for SDV. We plan to have 1,800 resources trained in SDV over the next few quarters in line with the demand. There are multiple proposals that are under discussion currently with OEMs and Tier 1s. Our EV play continues to be strong, with trucks and off-highway customers also moving up the investment curve towards high-power EVs. In aero, we have seen multiple new build conversations starting as a refresh cycle is beginning. Overall, we are excited about the number of large deals in the pipeline and new technology conversations we are having with our customers, which should continue to drive growth in Transportation. In Plant Engineering, we had a strong quarter with nearly 4% Q-on-Q growth that was broad-based across FMCG, O&G, and chemicals. O&G customers are investing across the spectrum in shale, low carbon energy, carbon capture, and renewables. They are also making changes in the refinery as they refit themselves for greener fuels. In FMCG, there's a continued capacity expansion happening, with automation and digital twin being the investment focus. The deal pipeline in both the U.S. and Europe continues to be healthy. That will drive strong growth for Q3 and beyond. At Industrial Products, we had a slightly softer growth in Q2, which was led by electrical, machinery, and power and utilities, while building automation had challenges. Digital manufacturing and the use of AI and robotics is driving demand for us. Customers are enabling such technologies to improve internal efficiency and speed up time to market. In Q2, we won a large deal with a global machinery company to set up a software center of excellence in India, catering to their digital transformation needs. Sustainability is another driver for growth, as customers look to measure and track carbon footprint over their product life cycle. While growth momentum has continued, the pace has been slow on account of decision-making delays and some stress in the sub-billion customer set. We continue to see growth in IP, which will be driven by digital products and Digital Manufacturing. In Telecom and High Tech, we grew 2% sequentially, despite challenges in the semicon and consumer electronics portfolios. In semiconductors, we are engaging more on the new age chipsets that are designed for AI and cloud computing workloads, which has allowed us to keep growing despite the challenges. Our Palo Alto partnership is progressing well. We are in discussions with multiple enterprise customers to provide operational technology and cybersecurity services. We won our first large deal of $10 million+, leveraging SWC capabilities in the global market. As part of this deal, we will be helping a global customer in establishing a 5G center of excellence. Our superior end-to-end technology stack for wireless and 5G communications that is becoming a key differentiator for us, helped us win this deal. In the NextGen Comms and sustainable world space, we won 2 large orders in India. One for setting up an advanced communication system for a metro rail, and the other for implementing a statewide metering, smart metering system. In the media side, we are also seeing large deal opportunities for vendor consolidation and cost optimization being the key driver. Overall, we are optimistic that with the key pipeline and deals we are likely to close, growth will continue. Near term, we might still see some volatility in the semicon side, although the media and next-gen comm part are likely to keep growing. Lastly, in Medical, we had a good quarter as we improved on the growth momentum sequentially. Last quarter, I talked about how we are seeing traction improving in the large deal pipeline in Medical. Happy to share that we won 2 deals in Q2, each of them close to $20 million in TCV. In one, we will be developing a next-gen platform to bring out products faster to the market. In the other deal, we will help a customer in procurement and manufacturing optimization. Digital, especially in areas like process automation, optimization, and productivity improvement, powered by AI solutions, are seeing increased demand. Cybersecurity is another focus area for our customers in Medical. Q3 will be a soft quarter for us in line with seasonality, although we expect growth to bounce back Q4 onwards. Now, a few highlights on our digital engineering and technology progress. Our engineers continue to innovate. We had a filing of 53 filings in Q2, and as you are aware, the pace of patent filing has increased. Our cumulative filings are near the 1,200 mark from around 1,000 a year back, and I'm happy to share that this is the 10th quarter in a row that we have filed 50 patents for ourselves and our customers in the quarter. The innovation culture in the company promotes ideation and cutting-edge solutioning. I would like to highlight that in the ACES domain, Everest has rated LTTS as the number one service provider in electric and among top leaders in autonomous and connected. Similarly, ISG, for their manufacturing industry services, rated LTTS as a leader in digital factory and manufacturing solutions and also in agile product development. Let us now discuss the outlook. We are investing in software-defined vehicles, AI, cybersecurity, and we'll have close to 2,000 employees trained over the next few quarters. Our collaboration with the hyperscalers and chip companies is helping us develop AI solutions and services that address needs for industries like auto, manufacturing, and Medical. These conversations are helping us to advance the resilience, growth and transformation agendas of our customers, while also adding more large deal engagements to our pipeline. The deal pipeline we see makes us very optimistic about our growth sustaining, and you can see this is also reflected in our headcount addition in Q2. Having said that, there has been increased uncertainty with the events that have unfolded over the last few weeks, and these developments are still evolving. As a result, we are seeing a wider range of how Q3 and Q4 could play out for us. On grounds of prudence, we are therefore revising our FY24 revenue growth guidance to 17.5%-18.5% in CC. Summing up, we had a good quarter, and the deal wins and customer traction make us confident that our investments are helping us to be on the right side of the future work and expansion. With that said, I wish you all again a very happy upcoming festive season, and I would now hand over to Rajeev. Thank you. Thank you, Amit. Greetings to all of you. I'm pleased to share that our Q2 FY 2024 performance has been another quarter of good results, with healthy addition of deals and consistent operational performance. Happy to note that after fully integrating SWC within LTTS, we've seen our first large deal win in the global markets, leveraging the joint capabilities. With that, let me take you through Q2 FY 2024 financials, starting with the P&L. Our revenue for the quarter was INR 2,387 crores, a growth of 3.7% on sequential basis. Our Y-o-Y growth for Q2 came in at 4.6%. We've been able to maintain EBIT at 17.1% after absorbing wage hikes and investments in technology that Amit highlighted. These headwinds were offset through operational efficiencies, better SG&A leverage, and cost optimization measures. The EBIT margin is in line with our aspiration of 17% for FY 2024. Now moving to below EBIT, let me talk about other income. Other income was INR 29 crore, lower on sequential basis due to lower income from investments. Effective tax rate for Q2 was 27.6%, in the same range as our expectations of 27.5%. Net income for the quarter was 5% on Y-o-Y basis and came in at INR 315 crore, which is 13.2% of revenue. Moving to balance sheet, let me highlight the key line items. DSO came in at 102 days at the end of Q2, flat as compared to Q1. Unrealized days was 16 in Q2, compared to 15 days in Q1. The combined DSO, including unbilled, stood at 118 days compared to 117 days in Q1, which is within our target range of 115-125 days for the year. Let me now talk about cash flows. Our year-to-date free cash flows were INR 430 crores, which is at 69% of net income. We continue our efforts in improving collections and maintaining healthy free cash flows, and we'll see further DSO improvement in H2 FY 2024. Our cash and investments stood at INR 2,270 crores end of Quarter two, versus INR 2,394 crores at the end of Quarter one. This was slightly lower due to final dividend payout of FY 2023 of nearly INR 320 crores. As you would have seen today, the board approved an interim dividend of INR 17 per share. Moving to revenue metrics. On a sequential basis, dollar revenue growth was 3.2% on constant currency basis and 2.9% in reported terms. We saw broad-based growth in Q2, with all segments growing quarter-on-quarter basis, led by Transportation and Plant Engineering segments. The segmental margin performance was better in three out of five segments on a sequential basis, with improvements in Transportation, Telecom, High Tech, and Plant Engineering segments. Now let me comment on operational metrics. The on-site offshore mix was at a similar range as compared to Q1. Offshore percentage now stands at 59.6%. We are working on measures to gradually improve this metric, as we had said earlier. The T&M revenue mix was 64.2% in Q2, in a similar range as compared to Q1. We expect this to continue at the same levels going forward. Client profile, which indicates the number of million-dollar-plus accounts, has shown a sequential improvement in the 30 million-plus category. The client profile will continue to improve in the coming quarters. Client contribution to revenue, all three categories, top 5, top 10, and top 20, have shown a slight improvement as compared to Q1, and we expect this trend to continue going forward. Headcount increased sequentially by 488 employees, while attrition dropped by 220 basis points to 16.7%, as we see an impact of various employee engagement measures, as well as the industry-wide trend coming down. Rupee for Q2 was around 82.84 to the U.S. dollar, a depreciation of nearly 1% versus Q1. Ladies and gentlemen, the line for the management has got disconnected. Please stay connected while we reconnect the management. Ladies and gentlemen, this is the conference operator. Please note that the line for the management has got disconnected. Please stay connected while we reconnect the management. Ladies and gentlemen, thank you for patiently holding. We have the management line back on the call. Sir, please go ahead. Yeah. Hi, everyone, this is Rajeev. It seems we got disconnected, so I will again repeat the last part of what I was saying. So we maintain our aspiration to be at 17% EBIT levels in FY 2024 and to get back to 18% EBIT levels by H1 FY 2026. With that, wish everyone a happy festive season ahead. We thank all our stakeholders for their continued patronage. Thank you. Moderator, we can take questions now. 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. In order to ensure that the management is able to answer queries from all participants, kindly restrict your questions to two at a time. You may join back the queue for follow-up questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We'll take our first question from the line of Vibhor Singhal from Nuvama Equities. Please go ahead. Yeah, hi, thanks for taking my question. Great to see amidst a very broad-based and growth across all the segments, so congrats on that broad-based growth. I just had a couple of questions. In the industry at this point of time, we are seeing two phenomena. One is the new deals are closing at a, are taking time scale get close or start execution, and some of the second is the existing deals are, are the key critical part of those deals have been put on hold or are being delayed. What in your case has led to that small discrepancy in the revenue, which led us to downgrade our guidance? And what do you see- how do you see this thing playing out over the next few quarters? So, Vibhor, thank you so much. Vibhor, so let me, let me say a couple of things. One, if I look at the last quarter when I had come to this call, and before that as well, I've been talking about the fact that the number of deals that we have got in our pipeline, $10 million+, $20 million+, right, more and $50 million+, even three-digit, is higher than where it was last year, right? The deal velocity is slightly slower. The average deal size is slightly longer, right? I talked about this last time. So the results have been that we've been able to sign the seven deals that were $10 million+ in Q2, right? Out of which, six of them are $15 million+. Actually, a couple of them are more than $20 million, a couple of them are exactly $20 million, et cetera. So, there's been that color. In addition to that, in the current quarter also, that is Q3, that's progressing right now, we have signed $20 million plus, $10 million plus deals. 3 deals that have been signed in the last 2 weeks as well. So from that standpoint, the funnel is bigger, and we are seeing those closures. Now, the reason that we've been prudent and cautious slightly in terms of the guidance, saying 17.5%-18.5%, though our internal targets are to reach the original numbers that we had told you, is that, you know, the market in the last 3 weeks, 5 weeks, has changed slightly. One, you are aware of the UAW strikes from mid-September that have been happening in the U.S., which has put a pause on a couple of projects that we were working on. Two, we don't know when that's going to lift off. Second, with this developing situation that's happening in the world, we are not totally sure as to which way will this come and sit. Though we don't have too much operations in Israel, it's very small, and we continue to pray for our small team that's there. But what will be the indirect impact, we're not sure. And therefore, I shared with you also that we have an analysis that we use for computing this. So and we have taken that into account, and that's why you're seeing the revised one. We will come back again, you know, in January, and if things turn, we will let you know. But we continue to work, we continue to be optimistic, we continue to be hiring, we continue to invest in technology. Sure. Great to hear the optimism from the leadership. Thanks a lot, Amit. The second question I had was on the telecom segment. Now in this quarter, we have won this deal, as you mentioned, the SWC and capabilities in mobile. Now, traditionally, in the telecom and high-tech segment, we've been more towards telecom and high-tech than the telecom service providers, the TSPs. Will that mix change, or has that mix already changed in favor of telecom service providers, because of SWC developing into the business? Do you think that could impede the growth that this segment could see, given the telcos globally are leading, there have been very few monetizable cases of 5G, and telcos across the world have not been able to ramp up their, let's say, ARPU or their revenue profile because of 5G options? So see, it's more than just 5G or telco providers. It is two or three things that you should look at, right? Number one is that we also look at cybersecurity for this segment as a horizontal offering across enterprise as well as telecom, right? So one, what's happened is with the 5G, with the SWC acquisition, our skill level, our skill depth, our expertise, has definitely gone through a shift and a change towards the positive way. That is helping us in having more mature conversations with telecom infra OEMs as well as operators, and actually, at times, it's spilling, it's spilling over also to some of the media work that we are doing, you know, it borders on this, so it's helping us have those conversations. The deal we have closed, which is the first Smart World deal, $10 million-plus deal, we had closed a smaller one earlier. First $10 million-plus deal, for this particular business, we have closed with a US customer. In Q3, which is the last two weeks, we have closed a cyber deal, $10 million plus, again, with an international customer. These are at standard margins, right? So it is helping us change the conversation. The second thing that we are seeing, and we talked about the deals we have won in India, first with Smart World, is we are proud to say that the work that we have won in Smart World in India actually has a component of software that we have developed in-house that we're gonna be deploying as well, right? So that is a value-add service that we are providing. Third, with the work that we are doing with telecom, we are able to go to semicon companies, we are able to go to telecom infra companies and work with them, that work with them to be able to bring them to India together. So it's becoming like a sale with solution, with conversations that was not happening prior to Smart World. Lastly, we are getting to finally own an entire end-to-end project work that again, was not there earlier. Again, story to be played out, early days. We have made the investments. We have stood up a team in the Middle East, a full sales team in the Middle East. We have seen some smart city opportunities there as well. The pipeline is there. So to be played out with more, but definitely for the better and, per our plan, as we had thought about, when we purchased this business. Thank you. We have our next question from the line of Akshay Ramnani from Axis Capital. Please go ahead. Hi, thanks for taking my question, and congrats on a good execution on margins. So my first question was on SWC seasonality. So, during the last quarter's earnings call, it will be mentioned that SWC has a seasonally stronger H2. Now, when I try to look at the numbers, where you have given revenues for including SWC and excluding SWC for FY 2023, and take the difference out there, it appears that in Q2 of FY 2023, SWC saw very strong sequential growth. And it also appears that H1 was stronger than H2 in FY 2023. So can you please clarify on the SWC seasonality, and also maybe comment on how did SWC perform in Q2 of the current quarter? Did they also see that seasonality developing this quarter? Sure. So thank you so much, Akshay. In fact, if I take away the SWC revenue from the quarter, same quarter last year, the growth is approximately 16% for us as a company, right? But having said that, if I look at SWC business now, the whole goal of integrating SWC, buying SWC and integrating it together as one team, one company, one division, was that we would like to take this business internationally. Investing in a full-scale sales team in Middle East, and investing in a full-scale sales team in the US, as well as parts of Europe. The whole idea was to take the business, number one, take the business international. Number two, take away the seasonality to the extent possible and cyclicality to the extent possible. Third, was to improve margins in India and become value-added, rather than just being a reseller, you know, a provider. I think all those dots we are trying to do. Again, these are early days. It's only the Q2 that we have run together. So to be seen as we go forward. There are some good deals that are in the pipeline for the business as well, and now we don't call it Smart World anymore, we call it NGC, NextGen Comms. So we do have a pipeline for the NextGen Comms business, and we are actively working and pursuing to try and close some of these deals internationally as well as in India. So to be seen and to be played out as we move along. And we'll keep you updated as things develop and go forward. I do want to just say one more thing: We have actually packaged two of the solutions that are NGC business. If you want to call it the NGC business. NGC business has created, we have packaged it, we won our first order for the license as well, and we are doing more in that area. So to be played out, to be seen. My question on SWC seasonality, part, I think, still remains unanswered, but- Yes, let me address it, yeah. So, so look, please listen. I'm not going to look in the rearview mirror and say what happened last year. We are playing it in the current year, as we are, and we'll see how quarter three and quarter four do. To be played out. My second question is on headcount addition. So, the sub-500 QOQ addition, while it is positive, but I guess still lower than maybe your estimate of that 750 net adds, at least in Q2. So was this? And this is despite a reduction in attrition. So is it fair to say that this was because of demand deterioration through the quarter? And also, does our utilization now be lower to peak levels? Because it looks like that was one of the drivers to margins this quarter. So thank you, Akshay. Very valid questions. See, Akshay, the way you have to think about it is, that if we get a signal that future... So we normally know what kind of attrition- -numbers we will have a quarter in advance, right? Because there is a notice period, et cetera, and we've got an algorithm with HR that does that very carefully. So, we do see attrition levels stabilizing. That allows us to be able to leverage the bench better, have a smaller bench, if I may, and tune, you know, hiring, to make sure that we are not losing so many people, et cetera. Be able to actually free up some people that are there and have them work, et cetera, improve utilization, improve pyramid. So with all that, I would not read too much between the 500+ to the 700+. You know, we've had some joinings that have been there in, you know, the first week of October as opposed to September. That's all there is to it. We will continue, like Rajeev mentioned, we are on a path of profitable, sustainable, inclusive growth, right? You will see us being careful as we continue to be always in terms of how many we need, what can we repurpose internally, et cetera. In fact, our training institutes have been working overtime in reskilling people as well, and that's how you will see this going forward. For the record, about 2,000 freshers we had hired last year. So far we've onboarded, we're getting a similar number this year. We've already onboarded more than 1,000 so far, and the remaining offers that are there will be honored in the next two quarters. There's a plan for it as we move forward. We are in fact, starting to discuss, college campus hiring for next year, as well, and finalizing those numbers as we speak. Thank you. We have our next question from the line of Sulabh Govila from Morgan Stanley. Please go ahead. Yeah, hi. Thanks for taking my question. So, first is with respect to the guidance that we've revised, just wanted to understand, what's the split of this guidance ex of SWC? I mean, on an organic basis, what's the number that we're looking at for FY 2024? So, Sulabh, thank you so much for asking. We actually, we had, we had mentioned this in the last call, that we look at this now as an integrated business, and, we don't look at it as two businesses anymore, because now the international deals are being won. That means some of the Smart World resources are being used, NGC resources are being used, are being leveraged for that. There is work that is happening in India, where we are leveraging some of the LTTS heritage resources as well. So it's now become one team. So we are guiding, at this stage, 17.5-18.5, and, comfortable with the upper part of the spectrum. Understood. Understood. Then with respect to margins, Rajeev, the sharp decline in SG&A expenses that we've seen this quarter, and this is especially with the number of sales employees increasing. So just trying to understand, you know, what has led to this sharp decline, and how much of this is sustainable going through the quarters? Yeah, thank you, Sulabh. So let me clarify, the increase in headcount that you see are enabling, largely in the enabling side. As we grow, we also need to ensure that our enabling functions are able to cope up with the increase in demand and, of course, the scale of business that we operate in. See, some of the reduction that you see in the SG&A side is actually planned for, right? One of that comes from the synergies from SWC acquisition. We talked about it, we ran the process on integration. We have now concluded. We've merged the two businesses. A lot of the non-billable resources that used to be part of GNA now are actually moving into billable roles. Second, facilities have been consolidated. That has been another area that has given us benefit, so the synergies have truly translated. Second, given that we see that there are, you know, challenging conditions, that's always prudent to think optimization. We indeed optimize our SG&A costs. So areas like travel, welfare spend, all of these areas we have carefully looked at and optimized upon. The third is we've had lower stock option costs in this quarter relative to previous quarters. Then also looking at our variable, variable pay provision, we've looked at it in relations to the sales targets and accordingly adjusted for it. So these are a few reasons why you see. Now, in terms of sustaining the levels, we believe that we will, we have been in the range of 10%. We believe we will continue to be in the range of 9.5%-10%. While I mention this, there are, of course, a lot of opportunities that we see on the gross margin side. I'll probably add on to it, because for us, you know, looking at all of the costs in one stack is important. So while we've seen the gross margin come down, this quarter, it is truly because we value our employees as an important stakeholder. We did go through with our increments, and we feel there's a good opportunity on improving the utilization on freshers. We also believe that there are going to be further opportunities in terms of optimizing on subcontracting or TPC cost. Offshoring, we mentioned about it, and travel, right? So these are all areas that we're going to continue to play upon. And between gross margin, SG&A continue to see that we maintain our aspiration of 17% EBIT for FY 2024. Sure, sure, Rajeev. So just a quick follow-up. So does that mean that there is some sort of conservatism baked in the full year guidance and the 18% expectation in FY 2026 1H? Because the way we absorb the wage hikes in this quarter, ideally, one would imagine this happens throughout the year. So there should be more tailwinds to margins and to EBIT versus what we are implying right now. So, Sulabh, we, in a way, I would say yes. A lot has to be seen in terms of how we, you know, see revenue translate. Amit did talk about some of the headwinds. I mean, the current environment in the last month or so has not been that great. We believe if all plays out well, we should be able to come slightly better off, but of course, have to see that through. Of course, quarter three also is one of the most challenging quarters, right? Now, all of the costs we've planned, keeping in mind that these challenges are being addressed for. So, like I said, we maintain our 17% EBIT levels in terms of aspiration for FY 2024, and continue to look at the stack of costs as to how do we optimize or allow the scalability in terms of investing in technology. Thank you. We have our next question from the line of Karan Uppal from Phillip Capital. Please go ahead. Yeah, thanks for the opportunity. So Amit, one question on the longer decision cycles you have mentioned in the press release. So is the slowdown in decision cycles across verticals for you, or some verticals are more stressed than others at this point in time? And how confident are you to achieve the guidance, because it still requires 2%-3% CQGR in H2? ... Karan, thank you. So number one, I'll answer the second question first, and the first question second. So I would like to confirm to you that internal targets are higher than the guidance, and we will continue to strive to see that we meet those and do well, right? So unequivocally, I want you to think about this. And we have baked in some amount of happenings in the last few weeks, like I said in one of the earlier answers. Now, number two, do we see a slowdown happening across? See, more than a slowdown, right, I would call it caution, right? There is caution in terms of conversations that our clients are having with us. They are wanting to wait and watch how things turn out, right? Because there's a lot of these reports coming out every day that are fairly counter to each other. And every client is looking at their own market, they're looking at their own cost stack, et cetera. So we are seeing decision-making cautious. We are seeing people asking us more data before they make a decision. And what we are doing to address that is to pile up more proposals. So we are trying to see how we ramp up our pipeline to a much larger extent. In fact, my colleague Alind Saxena is driving that initiative of seeing what can we do in terms of improving the pipeline. Alind, would you like to share a few words on what we're doing around the pipeline? Thank you. So across the sectors, if you look at the five, six different sectors that we play in, we today have sufficient pipelines, and we have made some provisions for backups in case some of the decisions get delayed. We are seeing a fair amount of reception back from the customers on that. We are fairly confident that we are going to be able to close them in time to make sure that we meet our guidance as we go through. As we look forward, we see the momentum continuing and being stable over the next few months and few weeks that we have in front of us. Thank you. Okay. Second question, Amit, is slightly on the longer side, specifically on SDV related area. So, do you want to highlight any investments you are making maybe on the capability side or on the labs, any large deals in the pipeline within this area? Because peers have started announcing pretty large deals in software-defined vehicles. So any update from your side will be very helpful. So one, on the HPC side, as we look at the HPC stack, we look at it as a hardware layer. We look at it as the compute layer, embedded layer, and then the software layer, and then the data layer. So there are four parts to HPC that we are discussing here. So one, we are in active dialogue conversations, have engaged in a partnership model with silicon majors, where we are getting our people, number one, trained on the latest chips and how they will be leveraged on the high-performance computing chips. Second, we have won smaller contracts, and then we are looking at bigger contracts to do semiconductor design for these high-performance chips for HPC. Second, with OEMs and Tier 1s, we are working closely to ramp up work for them. There are double-digit deals that we are currently in play in our pipeline in the SDV area, that we are trying to actively pursue and close and ramp up. Third, we've actually leveraged our Global Engineering Academy to try and develop the skills internally and retrain people. Fourth, there are tools that we have developed around leveraging GenAI. There's a tool called EVQual, it's on our website, that's hosted on AWS. There is a digital twin for digital cockpit we have built. There is a Ethernet simulator we have built. There is Hawkbit, another one that we have built. There are various components that we have built that are leveraging, that we are leveraging for the OEMs and Tier 1s as we move forward. So, deals in play, deals in progress, a ramp-up happening across U.S., Europe, and Japan. Thank you. We have our next question from the line of Ravi Menon from Macquarie. Please go ahead. Mr. Ravi Menon, please unmute your line. Hi, thank you. Amit, if I heard you right, the only area that you really called out softness in was semiconductors. And historically, it hasn't been really bad for HCL when I look at it. Is anything different this time? So, 1, we do expect there to be a softness in Medical, right? So I'm calling that out. Number 2, semicon and ISV, my belief is that the pain will be over by quarter 3, and quarter 4, things should turn around in semicon and ISV. So there's another quarter of pain left in that, in that particular area. Outside of that, regular furloughs, Ravi, the only thing we don't know is that, because of the UAW strikes since mid-September, some of our projects were put on hold. And, right, and we are not sure whether we'll be able to leverage the working days in this quarter to work on it or will it slip to next quarter. So some of that is what's going on. Having said that, we're still cautiously approaching the quarter. That's why I said, you know, in my commentary that quarter three, there's a, it's still got to play out, right? In addition to that, there's a couple of deals going on that we have got that could help us in the quarter, this and next one, if we were able to sign them. So again, an active discussion ongoing, if I may, Ravi. Okay. And to be ideal here for you, Transportation is not just auto, but really strong, growth there. But in auto, should we worry about the EV, transition? You know, because we've been reading reports that, new sales are not really going through as expected, and, you know, automakers are actually seeing, bigger inventories of EV vehicles now. So, I mean, there are 2 parts here. Number 1, we are not just auto. We are like you said, we are auto, we are commercial vehicles, off-highway trucks and aerospace, right? And rail. So we are, we are across the segment. That's number 1. Number 2 is that our, so though we are rated highest in EV, and I'm truly complimentary of the entire team that came together to deliver it, we are not a single-trick pony. There is other offerings that we have got in the area, that we are leveraging, right? In fact, the investments in SDV that we are doing, we believe is the future, like AI. So AI, cybersecurity, SDV, as well as, next-gen compute and comms is the future. So, we'll continue to invest. And not just that, I would go a step further and say that one thing that we've been able to leverage very successfully, like for SDV, we did. We took a 50-member team from our semiconductor practice and a 50-member team from our consumer electronics practice, and we put that as a seed team for SDV and said, "Go build, and let's go ahead and grow," right? We had done that for EV, if you remember, 3 years ago, by taking 100 people from Industrial Products and power electronics. So we will cross-leverage skills from SDV and Automotive to other areas, if required, to supplement. And that is exactly the reason why we are in 5 verticals, and I do believe that this will be a shock absorber for others in case there's a slowdown in one area. But we remain actively engaged across meetings. Pipeline, again, is higher than it was same time last year and continues to grow. And a targeted effort being made towards SDV. Alind took over it, running a specific program in the company to again ramp up the program, ramp up the pipeline. Thank you. We have our next question from the line of Bhavik Mehta from JP Morgan. Please go ahead. Thank you. Couple of questions. Amit first- Mr. Mehta, you're not clearly audible. Can you use your handset, please? Am I audible now? Yes. So, Amit, you know, the decision-making delays, what you mentioned, is it just on the deal closures or also in terms of further ramp up? Because it seems like the deal closures have been strong for you. And I'm assuming that it's more on the conversion side, where there's an issue. Is that a fair understanding? And, secondly, if I look at the geography, it seems like a lot of the growth was driven by Europe and India, while U.S. was soft. So any color on the U.S. geography in terms of what details are you seeing any headwinds over there? Thank you. Sure. So, Bhavik, thank you. So, Bhavik, number one, when you—when I say decision-making delays, I am referring to a couple of things here. Number one is that, so the deal tenure that we were winning has increased. You know, it was we were winning deals that were 2.5 years long. Now, those deals that we are winning now are on average about, you know, 3.2 years long type, right? Is what's happened, number one. So therefore, there is, there is a longer ramp-up and, and then get to stable phase, and then potentially, you know, closure. Second, what is happening is that people are... So July, when, when we came in and talked to you, and then I think we did roadshows in, in, in August, right? At that point of time and now, what we've seen is, September, October, though we've been successful, right? I mean, 3 deals, two, $20 million plus, one, $10 million plus, just in the first 2 weeks of October that we have signed, that we have landed up. But, I still feel that there is a sort of a wait-and-watch kind of hesitation that's coming across, that we are seeing. People are talking about next year, right? "So let's do this, let's do this, but let's do this start in January," right? There are others are saying, "Let's start, and then let's, start smaller, and then we will ramp up with you. But we want to bolt down resources, we want to bolt down plans and take it forward." So there is some amount of wait and watch, that we are seeing creep into conversations. Having said that, there is still vendor consolidation, there is still, new age areas that people are ramping up in, and that is giving us a advantage. In fact, I would say most of the wins we are getting now is in newer age areas, rather than the older sustenance engineering, you know, older areas that were there. So that's number 1. Number 2, you are absolutely right. Europe has done very well for us. In fact, I remember about 2.5 years ago, one of the calls, there was worry that, "In Europe, are you serious? Will it grow?" And we had said that we will grow Europe. I would compliment the team, the delivery and the sales leadership team in Europe. They've done extremely well last couple of quarters, and knock on wood, I do see that growth continuing. This is across DACH, Nordics, Netherlands, and France. We are clear we are not in other geos, but these are the geos. It is not just Transportation, it is Transportation and Digital Manufacturing that we are seeing growth in. Not only that, Japan has grown for us. I'm again complimentary to the team that has worked hard in Japan to grow not just Automotive, but Automotive, High Tech, and Industrial Products. So we are seeing that. We are actually trying to see if we can get into Plant Engineering in Japan now. To be seen how it plays out, right? India, of course, the growth is part of the NextGen Comms business that we have had, et cetera. US, now where are we seeing a little bit of headwinds? We are seeing headwinds in the US in semiconductor and ISV space, and that did have an impact on us in the current quarter. We could have done maybe, you know, $1 million potentially more this quarter, had the UAW strikes not happened. That cut us off about $700,000-$800,000 this quarter. So that there's a little bit of this there, but we have expanded our sales engine. We are all guns blazing. We've actually started ideation processes on a continuous basis. So, to be seen how things are, but, you know, to be worked out, to be played out, and we'll continue to keep you engaged and updated as things progress. Thanks. And just to follow up on that, any early signs on follow-up from clients, what are we hearing from clients in the conversations regarding the December quarter follow, whether higher or lower for compared to the previous years? So, similar to last year, Bhavik, but to play out, to play out, I still have a hunch, it may turn out to be slightly better, but we don't know yet. So, so to be played out, Bhavik. Truly to be played out. Thank you. We have our next question from the line of Abhishek Shindadkar from InCred Capital. Please go ahead. Hi, sir. Thanks for the opportunity and congrats on a good execution. Just a clarification on the data point that you mentioned, that the revenues could be $800K-$1 million higher for the UAW strike. Should we also assume a similar number baked into your guidance in terms of why the reduction happened from, especially from this project? So, Abhishek, thank you. Abhishek, I was giving an example on quantifying a certain situation, when I gave that number, right? The point is that, there are... I mean, you are aware of the macros that are developing right now with the kind of, uncertainty that's there. So there is a general caution, Abhishek, that we are baking into, the guidance that we are providing, Abhishek. Got it, sir. Thank you for taking my question, and best wishes for the year. Thank you. We have our next question from the line of Sandeep Shah from Equirus Securities. Please go ahead. Yeah, thanks. Thanks for the opportunity, and congrats on a good execution, especially on the margins. Amit, the first question is, if I look at the growth rate to achieve the next guidance at the upper end, which you are confident, is roughly around 3.4. And in our previous calls, we have said, for SWC, the H2 would be heavier versus H1. So is it fair to assume that the organic growth could be lower than 3.4%, on a Q1, Q2 basis? That is what you are assuming in the guidance, excluding SWC? Sandeep, thank you. Sandeep, everything is organic now. That's the way we look at it. So we are baking in, Sandeep, there are some pluses and some minuses. So while international, international, meaning the US, like, the colleague speaker prior to you asked the question, we saw very rightly, the US was a little light, while Europe, India did better. So, you know, this is to be played out. There are deals in the pipeline right now that we have to sell, and deliver, to achieve this guidance. I mean, let me be very clear in that. And there are deals in the US, there are deals in Europe, there are India deals, there are Middle East deals, that we are working on. So to be seen how it plays out, Sandeep. Yeah, yeah. And just a clarification, Amit, you also in one of your statements said the organic growth in this quarter on a YOY 16% or something else, there is some mistake in my hearing, I don't know. And what is your view on the consumer electronics, which we were expecting some amount of slowdown in the Q1 call? Let me answer your first question, and I'll request you to repeat your second. So Sandeep, what I was saying was that if Smart World was not so we recast last year financials, and we've added Smart World in last year financials, right? If I was to not add them in last year financials and only add them into current year financials, like I would do to any company I would buy, that was not, you know, joint ownership or whatever they call it, right? The right word. Then you would have seen 16% year-on-year. That is what I was referring to. Okay. Okay, now it's clear. And the second question was on consumer electronics. Right. -where you were slightly expecting a pain in the Q1 advance call. Any change in the outlook? So we are ISV. When we say ISV, we include some of these consumer electronic companies in that space as well. So ISV and semicon, we've been signaling that there was, you know, we saw cuts in work being given to us. And that impacted us negatively in quarter one, in quarter two. We do expect it to impact us in quarter three as well, and we expect staff to turn around in quarter four because there are—we believe that some of the new products coming out, et cetera, will require workforce to be added. In fact, some of the work that we've done in GenAI, where we have developed tools and, we've actually taken, we've created manufacturing use cases that we have done in GenAI, around predictive maintenance, that we have done in AI-powered optical inspection, around demand forecasting, around software-defined endoscopy for real-time video. All this work that we have done is going to help us actually capture some market share in ISV and semicon, and we believe that will help us as we move forward. Thank you. We have our next question from the line of Surendra Goyal from Citigroup. Please go ahead. Yeah, hi, good evening. Amit, I was just trying to understand some of your comments better. So you said, and I think earlier that the last month or so or last few weeks, that trends have shown a little bit of a slowdown. But on the other side, you also said that furloughs, you expect them to be better than last year, and last year we were in a fairly robust demand environment. So I was just trying to understand what is the thought process there? So, Surendra, what I'm saying is that, look, we, do we expect because this conversation was, I think I had with some of you that said, "Do we think it will be a Christmas quarter?" Right? And at this stage, looking at what we've been seeing, in the later part of September, we don't think it's going to be a Christmas quarter, right? Having said that, it has to be played out because the, the cues that we are getting at, from different, customers is different, right? So, so to be played out, like I said, and that we have taken into account when we have given the revised guidance. Okay, and the- I'm sorry if I sounded contradictory there, but I want to be clear that we do not expect a Christmas quarter. Sure. And just one clarification again. Was your earlier guidance conservative as well, or was that realistic? So, Surendra, always, whenever we provide guidance, we always look at various items. We look at things happening, we look at our ability to win our differentiators, and we bake that all in, and that's how we do this. Now, we don't have a crystal ball, and we will continue to improve ourselves and work on this, is what I would say, Surendra. The one principle we follow as a management team is that if we know something, we will make sure we don't surprise you, we let you know. That is the credibility we want to build with you, and that's what we stand for. Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Pinku Pappan for closing comments. Over to you, sir. Thank you, everybody, for joining us on the call today. We hope we've been able to answer your questions, and if you have any follow-up, please reach out to me. With that, we are signing off, and we look forward to interacting with you in coming days of the quarter. Have a good day and goodbye from us. Thank you. Thank you. On behalf of L&T Technology Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.