Ladies and gentlemen, good day. Welcome to the Mindtree quarter one FY 2022 earnings conference call. Please note all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the opening remarks. Should you need assistance during the conference call, please raise hand from participant tab on your screen. Please note that this conference is being recorded. I now hand over the conference over to Ms. Amisha Munvar, Head of Investor Relations at Mindtree. Thank you, over to you. Thank you so much, Aditya. A warm welcome to all of you to this conference call to discuss the financial results for the first quarter ended June 30, 2021. Trust all of you and your loved ones are safe and in good health. Today on the call we have with us Mr. Debashis Chatterjee, Chief Executive Officer and Managing Director at Mindtree, Mr. Venu Lambu, Executive Director and President Global Markets, Mindtree, Mr. Dayapatra Nevatia, Executive Director and Chief Operating Officer at Mindtree, and Mr. Vinit Teredesai, Chief Financial Officer at Mindtree. We will begin with a brief overview of company's quarter one performance, after which we will have open the floor for Q&A. Please note that this call is meant only for the analyst and investor community. Our friends from the media are requested to please disconnect as we have already concluded a media briefing. Before I hand over, let me begin with the safe harbor statement. During the call, we could make forward-looking statements. These statements are considering the environment we see as of today and obviously carry a risk in terms of uncertainty, because of which the actual results could differ from those outlined in our quarterly financials, which are available on our website. We do not undertake to update those statements periodically. With this, I now pass it on to Debashis. Thank you, Amisha. Good evening and good morning to everyone on the call. I hope you and your families continue to remain safe. There are mixed signs of improvement in the COVID-19 situation, with increasing vaccinations on one side and newer variants on the other. Even so, the progress in our ability to respond to a global crisis of such unprecedented proportions is remarkable. We will remember this period as a turning point that challenged us out of our comfort zones and pushed us towards a radically different view of the future. In more ways than we can imagine, the pandemic has also brought out the best in us. This is especially true of Mindtree. Our strong start to the FY 2022 underscores the resilience of our business model and the continued commitment of Mindtree Minds. For the quarter, our revenues were up 7.7% sequentially, and our order book was of $0.5 billion, the highest ever in our history. The pandemic has re-emphasized the pivotal role of digital transformation in driving competitive advantage, business outcomes, and customer value in today's hyper-connected, hyper-automated, and hyper-personalized world. Thriving in these volatile times requires adapting to disruptions with agility and turning them into growth opportunities. This is where we are making a significant difference to some of the world's most pioneering enterprises. By leveraging our digital expertise, omni-channel approach, and domain knowledge, we are enabling them to reimagine their business models. We see growing focus on customer experience initiatives, cloud and platform-driven operating models, intelligent decision-making, and automation amongst our clients. The focused execution of our strategy, supported by improving macroeconomic indicators and market sentiment, positions us well as a strategic partner to clients looking to become agile, innovative, and technology-driven enterprises. This is helping us gain market share and differentiation as clients analyze, reimagine, and transform their businesses for the new normal, aiming to maximize revenues and growth opportunities instead of just optimizing costs. Our broad-based growth across service lines, industry segments, and geographies indicate that the disciplined execution of our strategy and investments in strengthening our capabilities and partnerships are producing desired results. With this, let me provide more details on the quarter that gone by. We delivered exceptional Q1 performance of $310.5 million in revenue, up 7.7% quarter-on-quarter and up 22.6% year-over-year. Our record order book of $0.5 billion, comprising both annuity and transformational deals, is up 34.2% sequentially, making a strong start for FY 2022. The momentum is evident in the fact that all industry segments grew sequentially this quarter. Communications, media, and technology grew 6.9%. Retail, CPG, and manufacturing grew 7.7%. Banking, financial services, and insurance grew 6.4%. Travel, transport, and hospitality grew 13.1% sequentially. As we begin reporting the performance of our healthcare business, we have reclassified some of our clients and included new wins. We are pleased to report that healthcare, our newest industry group, contributed $3 million to our revenue. The comparative numbers are available in our Q1 financials. In terms of geographies, North America contributed 76.6%, Continental Europe, U.K., and Ireland contributed 16.2%, and APAC and Middle East contributed 7.2% of our revenue during the quarter. Our investments in Continental Europe, U.K., and Ireland have helped us deliver a strong growth of 11.2% quarter-on-quarter and 52% year-over-year for the region. Among our service lines, customer success contributed 40%, data and intelligence contributed 15%, cloud contributed 19.9%, and enterprise IT contributed 25.1% of our revenue for the quarter. In our industry groups, RCM and CMT continue to witness strong demand. We are happy to report that our BFSI business is returning to growth. We remain cautiously optimistic about the TTH business, although our client relationship and diversification strategy continue to drive growth momentum in that sector as travel and hospitality pick up. We are partnering with forward-thinking organizations in leveraging disruptive technologies to help them keep pace with the changing business environment, maximize efficiencies, and accelerate time to value. Let me share a few deals we won during the quarter. One of the world's leading investment managers has selected us as a strategic partner for a multi-year managed services engagement to drive innovation and differentiated experiences by modernizing and transforming its IT infrastructure and application portfolio while enabling multiple strategic business and technology change initiatives for them. A global travel management company has chosen us for a multi-year end-to-end AWS cloud migration and cloud operations program to drive its new business and product strategy. A global leader in automobile manufacturing has chosen us as a multi-year strategic partner to transform its applications ecosystem. A global high-tech industrial conglomerate has partnered with us to enable digital selling and an omnichannel customer experience. A world leader in steel wire-based products has partnered with us for a multi-year digital transformation program where we will deliver digital commerce platforms globally with our data-first approach to enable digital revenue acceleration and enhance customer experience. The core of our delivery excellence framework is built upon best practices from distributed agile execution methodologies that help us drive positive business outcomes. Certifications in seven ISO standards across 14 of our locations are a testimony to our ability to provide seamless and secure delivery. Let me talk about a few engagements we delivered during the quarter. For a leading telecom company, we helped optimize operating costs by migrating its IoT applications to the cloud, resulting in 99.99% uptime, reduced data center footprint, and improved security compliance. For a leading asset management company, we executed a multi-year large-scale IT support and transformation project. Using a robust transition methodology on our proprietary platform, we successfully migrated more than 200 applications in a zero-touch manner. For a multinational FMCG company, we successfully rolled out a complex SAP remote conversion tool to address its regular infrastructure scaling. This is enabling smoother business transition and significant annual cost savings. Our recognitions in the quarter include being ranked second for client satisfaction in the 2021 U.K. IT Sourcing Study conducted by Whitelane Research in collaboration with PA Consulting. Our overall satisfaction score of 80% was well above the industry average of 72%. We earned the analytics on Microsoft Azure advanced specialization, validating our ability to help businesses unlock value from data and analytics. We were named a major contender by Everest Group in its application and digital services in Banking PEAK Matrix Assessment 2021. We were named among 40 customer analytics service providers in Forrester's Now Tech: Customer Analytics Service Providers Q2 2021 report. We were recognized with the 2021 ISG Digital Case Study Awards for best-in-class digital transformation work with enterprise customers. Investments are key to enhancing our ability to deliver value to our stakeholders, our clients, Mindtree Minds, and our communities, be it hiring and reskilling the brightest of talent, building new domain delivery and technology capabilities, driving partner-led go-to-market strategies or fulfilling our responsibilities as a corporate citizen. We recently completed the acquisition of NxT Digital Business to advance our edge-to experience proposition. This strengthens our ability to reimagine and drive the Industry 4.0 vision, leveraging IoT, data analytics, and cloud technologies seamlessly. We see innovation as a big part of our ability to help our customers seize new growth opportunities. This can be seen at play in the Digital Pumpkin, our unique digital innovation hub for multidisciplinary teams to come together to ideate, design, and craft meaningful business solutions in a collaborative approach to create innovative prototypes and pilots for our clients. Our consulting team plays a big part in this, shaping demand and meaningful business outcomes. Let me share a few success stories in this context. We were selected by a leading U.S.-based beverages company and a strategic partner to provide consulting and implementation services to improve customer acquisition and retention. We have been retained as the preferred partner by a leading luxury real estate services provider to define and implement a refreshed customer experience strategy. We have been selected as a strategic partner by a leading multinational sports goods manufacturer to design and implement its digital commerce initiatives. All this is made possible by our dedicated and passionate Mindtree Minds across sales, delivery, and support functions. We continue to build upon our unique value proposition for Mindtree Minds, in line with the fundamental principles of our work ethos, purpose, caring, learning, and delivering results. During the quarter, we onboarded a net headcount of more than 3,400 Mindtree Minds. Our highest ever in a quarter. Taking our headcount to over 27,000. Our last 12 months attrition stands at 13.7%. Continuous learning is the cornerstone of competing edge in this era of change. Our learn anywhere, anytime approach in delivering quality learning at scale is bearing fruit with an 86% increase in learning hours quarter- on- quarter. I would now like to pass it on to Vinit to walk you through our Q1 financial highlights. Vinit. Thank you, Chatterjee. Good evening. Good morning to everyone involved. A strong start to the new fiscal with broad-based growth bears testimony to the focused and successful execution of our strategy. This is our fourth consecutive quarter of profitable growth momentum despite unprecedented times. Our reported EBITDA margin for the quarter was 20.3% compared to 21.9% in Q4 FY 2021. Our reported EBIT margin for the quarter was 17.7% compared to 18.6% in the preceding quarter. The 160 basis points drop in the EBITDA margin as compared to the prior quarter was primarily due to 170 basis points on account of our highest-ever net headcount addition. 40 basis points due to visa costs. This was partly offset by 50 basis points tailwind from the cross-currency movement, revenue growth, and higher operational efficiency. The net effective tax rate for the quarter was 26.2% as compared to 24.3% in Q4. Net profits gain for the quarter was $5 million. Profit after tax margins for the quarter remained flat at 15% as compared to Q4. PAT in absolute terms was $46.5 million, resulting in the earnings per share of INR 20.80 for the quarter as compared to INR 19.20 in Q4 of FY 2021. Our continued efforts in collections during the quarter led to a three-day reduction in the days of sales outstanding. For the quarter, it stood at 37 days. EBITDA to operating cash flow was 28% for the quarter. Free cash flow to EBITDA was 20.9% for the quarter. Our utilization for the quarter was 83.2% compared to 84.3% in Q4. Our contractual pricing for the quarter remained stable. Our record order book of $0.5 billion is a result of our differentiation in gaining market share. As of June 30th, 2021, our cash flow hedges were at $1.108 million, hedges on balance sheet were at $128 million, and options of $15 million. Our sustainability report for FY 2021, the company's ninth sustainability report, provides a snapshot of how we have integrated environmental, social, and governance consideration into our business, demonstrating our commitment to people, planet, and profits as we enable business and societies to flourish. We were rated among the top five companies for ESG by CRISIL Limited in an evaluation of 225 companies across 18 sectors in India. EcoVadis awarded us the silver rating in this year's sustainability assessment, placing us among the top 25% of more than 75,000 companies it assessed. I now hand over to DC to cover the demand and outlook. Thank you, Vinit. Our focus continues to be on accelerating growth, building new edge capabilities, strengthening our work ethos, and making our business model more resilient. We are witnessing accelerated adoption of digitalization across industries. While recovery is understandably linked to the recovery from the pandemic, we are energized by the growing scale and scope of transformational opportunities ahead of us. We have greater visibility in the business, and our pipeline continues to be strong across industry sectors, ensuring our strong start to FY 2022. These constructs are factoring in our differentiated capabilities to deliver solutions that are aligned with evolving industry contexts and have the potential to open newer growth avenues for our clients. This is further strengthened by newer digital capabilities as manifested in the new opportunities around IoT and Industry 4.0 that have been unlocked by our acquisition of L&T NxT. We will continue to make focused investments in the business to drive sustainable long-term growth and shareholder value. We are further ramping up hiring to meet the growing demand for our services, and we'll soon initiate a second round of wage increases for our eligible Mindtree Minds up to the mid-management level. While this could create some near-term margin headwinds, our robust business momentum and operational efficiency programs give us the confidence to deliver industry-leading double-digit profitable growth in FY 2022. We have demonstrated the strength, agility, and resilience required to leap into the future. With that, let me open the floor for questions. Thank you very much. We will now begin the question- and- answer session. Anyone who wishes to ask a question may raise your hand from participants tab on your screen. Participants are requested to use headphones or earphones while asking a question. Participants are requested to ask one question at a time. For follow-up questions, please join the queue again. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from Mr. Nithin. Yeah, hello. Thanks for taking my question. Sir, the first question was on of the $504 million of deal wins, it'll be helpful if you could give us some vertical wise color in terms of how the wins were in terms of proportion of that $504 million. Yeah. Hi, Nithin. I think, the way to look at it is, there were some renewals, but at the same time, some of the deals were more annuity kind of deals and led by mostly in the CMT as well as in RCM, which has a maximum share, but otherwise, it was fairly broad-based. Vinit, do you want to add any color? No. I think you covered it. Thank you. Next question is from Mr. Vimal Gohil. Thank you for the opportunity, sir. I just had one question. Just wanted to get your sense on the subcontracting cost. They have doubled on a YoY basis. What causes such a sharp increase? If you could just highlight, will our dependence on the expensive mode of delivery, which is the subcontractors, go up structurally going forward because of the tight supply environment that we see? How should we see this cost going forward? Thank you. Vimal, the way to look at it is if you look at our overall growth momentum in this quarter, we had a significant growth, and we also felt there are opportunities where we wanted to initiate new engagements wherever it is possible. In lieu of that, definitely we have to rely on subcontractors, and I think that is a scenario which may exist for a little while. As an overall strategy, I don't think we want to really keep on increasing subcontractor cost in the long run. It is a short-term phenomenon, but over a period of time, it will even out. That's the strategy that we have. Thank you. Next question is from Mr. Vikas Ahuja. Requesting you to please introduce your company affiliation before asking your questions. Thank you. Yeah. Hi. Thank you. This is Vikas from Antique. Just one check on the overall pipeline. After this $0.5 billion of bookings, which was again on a record high. How the overall pipeline is looking now after booking first phase? Secondly, maybe some color on the BFSI vertical. It has been a laggard, but saw that it moved positively into high single digits during this time. How should we look into this vertical going forward? Thank you. Thank you, Vikas. Okay. As far as the pipeline is concerned, the pipeline is fairly robust. In fact, the pipeline has only been increasing from quarter-over-quarter. Our pipeline at this point of time is pretty robust. The order book that we have, in spite of this order book, our pipeline remains pretty healthy and pretty strong. As far as BFSI is concerned, we did mention in our previous quarter that there were a few opportunities which we were expecting closures that took some time for closures. Those opportunities are closed, and that's why we are seeing very good traction, and we are very confident that this traction will continue as we go along. We need to also appreciate that this is one segment where there's a lot of consolidation that happens, and that's why things do get slowed down. As of now, we feel confident about our recovery in BFSI. Venu, do you want to add anything? Yeah. Just on the order booking number. If you actually look at it, last year we did about $1.4 billion. We're looking at the orders that we can book for the entire 12 months. There's always going to be one quarter where you will see slightly a different value keep coming in. What we are interested in is for throughout the year, can we keep increasing our order book? I think we got a good start for the first quarter, which will help us to achieve the point that I mentioned. There's also a bit of a timeline that the customer takes decisions on. Hence, probably not always the quarter-to-quarter order book is the right measurement, but the run rate is what actually matters. I'll be in a good run rate to close the order book for the entire year, which will be higher than what it was last year, and I think we are on the track. Thank you. Next question is from Mr. Mohit Jain. Hi sir. This is Mohit from Anand Rathi. Just wanted to check one thing on the cash flow side. We have seen this buildup on the receivable days if I include unbilled amount into that. What is the reason for that, or should we expect it to get normalized as the year progresses? Is there a change in working capital requirement for the company? This is pretty just a quarterly situation. As we've been talking about in the past, our overall shift is moving from an effort-based on outcome-based, whereby we are having a lot of new fixed price deals coming in. To that extent, yes, our billed revenue, billed DSO, has come down, and even including the unbilled, also it has come down by one day. Including unbilled, it was 77 last quarter. This is now booked 76 this quarter. Even the overall what we are seeing right now, that drop in the cash flow is mainly on account of the variable incentive payout that we have done and the overall growth that we have in our debtors during the year. This is not something we should look at from a trajectory change perspective. This is just a quarterly phenomenon that is happening. Thank you. Next question is from Mr. Manik Taneja. Thank you for the opportunity. This is Manik Taneja from JM Financial. I had a couple of questions. Number one was on segmental margins. I see that the segmental margins from the retail vertical have come off sequentially in a very sharp manner. Just trying to understand if there is any one-off cost recognition here. That's question number one. The second thing is that you talked about the fact that we will be implementing wage increments from FY 2022 onwards. Just trying to understand if that 20%+ EBITDA margin outlook holds true for FY 2022. Thank you. On the consumer packaging and manufacturing segment, the drop in the margin is right now only because we are in the process of ramping up on some major projects for two of our customers within Europe. There is more cost compared to revenue that we should be realizing there. It's in the transition phase. On your wage increments, it's just the wage increments what we are going to be doing is obviously going to be at a selective level up to a certain level in the organization, and that is only going to have a limited impact on our overall margin. With our growth momentum continuing the way it has been at this point of time, Q1, we are confident of still remaining on the trajectory of 20%+ for the full year. There might be some short-term headwinds. Thank you. Next question is from Mr. Dipesh. Yeah, thanks for the opportunity. Two questions. First is about the non-top 10 clients. I think we are seeing good presence in non-top 10 clients. If you can provide some color in this market, how we are seeing this client dynamic, and do you think potential scope in these clients where we are seeing some of them moving to top 10 over a period of time? If you can provide some detail on these clients. What kind of services we are planning to provide and how cross-selling is happening in this quarter? Second question is about depreciation and amortization. That number has dipped sharply this quarter. If you can provide what will be the steady state going forward. Thank you. Dipesh, let me just respond, and then I'll let Venu and Vinit also add. As far as the top client is concerned, top client revenue share has gradually reduced a little bit, and our intention is that over a period of time, as the growth happens, the revenue concentration for the top client will reduce. We have been very focused in the two to 10 as well as two to 20 segments. The top 10 clients, barring the top client, the revenues have grown sequentially by 13%, and the top 20 clients, barring the top client, revenues have grown around 11%. We have a very robust program in place where we have a set of focus accounts, and we want to cross-sell and up-sell into those focus accounts. We are very confident that revenues will actually grow in the focus accounts, which will be in line with our overall strategy that we are adopting. Venu, do you want to add any additional color, and then we hand over to Vinit? Sure. Probably I'll just answer the other part of it, what kind of services are getting sold in those customers. We actually see a significant demand in our customer success service line. Everything to do with enabling the front end and customer experience and the commerce capabilities of our customers. The second area we are seeing a significant traction is in the digital engineering space, where you actually do the digital product development for our customers. That's why you see the growth of two to 10 as well as two to 20 customers is coming essentially around these areas. Vinit, do you want to take the next? A question on the depreciation and amortization. As we had mentioned in the past quarters, we had gone for a level of an accelerated depreciation on some of our intangibles pertaining to the past acquisitions between Q3 and Q4. That's got completed. That's why you see the Q1 depreciation and amortization number coming down compared to the past quarters. However, as you know now that we have recently made the acquisition of L&T NxT, which has just got completed and will be integrated in Q2. To that extent, you will see again a certain amount of amortization expenses increasing from second quarter onwards. Thank you. Requesting everyone to introduce your company affiliations before asking the questions. Next question is from Mr. Vibhor Singhal. Hello. Yes, Vibhor, go ahead. Yeah. Hi, good evening. Thanks for taking my question, and congrats on a great performance yet again. I just wanted to get your perspective on the strong hiring that we have done in this quarter. Of course, it's for the unprecedented and also the reflection of the demand environment we are operating in. Just wanted to get a color on this, that how should we look at it in terms of, let's say, quarterly numbers. Does this mean that we are expecting a similar kind of, not a guidance per se. Are we looking at a very strong performance in near future, or is it just, let's say, long term reflection of the strong demand environment that we are looking at? Yeah. I think there are a couple of data points. One is we have gone into the FY 2022 with a very strong momentum, and that kind of set the stage for the rest of the year to a certain extent. If you look at the momentum, the momentum kind of got built over the last several quarters. This is the third consecutive quarter of 5% plus sequential growth that we have. The hiring that we have done is definitely, obviously, to fulfill the demand for the quarter, but also keeping in mind the confidence that we have in terms of the deals that will be coming in the future as well. At this point of time, the only thing I can say is that we are very confident about the demand scenario that we see. The hiring will continue, both in terms of laterals as well as freshers. In fact, our fresher intakes are also going to significantly increase this year compared to the last years. Thank you. Next question is from Mr. Ashish Agarwal. Hello. This is Ashish from Principal, which is fine. Just a couple of things. On the deal side, were these deal signings more renewals heavy or these are mostly newer deals? Are you seeing an increase in the duration of the deals which you're signing? Secondly, despite the strong employee addition, our employee costs only increased by 3%, 4% Q1 to. Does that mean a lot of these employees were added towards the end of this quarter? Yeah. Thanks. Thanks. See, in terms of deal signings, as I said, there is a combination of renewals as well as new deals. Definitely more and more deals that we are signing, they seem to be multi-year, and they definitely are helping us in terms of creating a more multi-year kind of an order book. I think. What was the second question? Employee cost or buy cost. I want to take that, yeah. Ashish, you're right. Though we have seen a significant increase in the employees headcount towards the end towards the quarter, a lot of that has happened towards the end of the quarter. As DC mentioned in his initial comments, they're also adding a lot of freshers who have also joined towards the back end of the quarter. That's the reason. You don't see necessarily the entire cost coming up in Q1. Thank you. Next question is from Mr. Nithin. Yeah. Hi, good evening. This is Nithin from Investec. Sir, my question was around the margins again. This quarter, we have seen a very sharp improvement in subcontracting costs, and the employees have been added towards the end of the quarter. If you think about it, in terms of at least from a modeling perspective, do you think that subcontracting cost decline will be gradual, or do you think these employee additions will sort of straightaway make up for the increase in subcon costs that we see? The other thing was, in terms of wage increases or salary increases, how should we estimate it? Is it for a part of the employee base, and what could be the potential impact? Let me answer that, and then I'll request Vinit to add more color. I think the first question I've already answered. There has been a need to have more subcontractors, given the nature of deals and the programs that we have started. I think this is a phenomena that may continue for a little while. We have a pretty robust plan in terms of our overall operational efficiency, all the levers that we use, including a lever, which is how do you correct the pyramid, how do you reduce the subcon over a period of time. We have all those programs in place. Over a period of time, we will definitely have those things gradually coming down, and we'll have a better view of that. In terms of wage increases, it will be mostly for the junior and the middle management, and there will be definitely certain eligibility criteria. The corrections will be in line with the market expectations. We may not be able to call out a specific number, but we feel that it's very essential for us as we go along. Vinit, you want to add anything? No, I think we have answered it, DC. Thank you. Next question is from Mr. Mukul Garg. Hi, thanks. DC and Venu, either of you can answer this. Venu, you mentioned earlier that you have an aspiration to increase deal TCVs as we go through the year. I want to clarify two points regarding that. How do you see the TCV value which you can manage with the current structure and workforce if you have a certain aspiration level in terms of the value, or do you think $500 million-$600 million is basically something which will be a peak TCV with the kind of workforce you have right now? Second, also wanted to check in terms of the trajectory of booking. DC, you mentioned earlier that they have increased, they are multi-year deals. If you look at from a last few quarters versus this quarter perspective, are you seeing an elongation in the trajectory given the sharp increase you have seen in Q1, or is this something which has similar type of booking environment like you have seen in last few quarters, which implies that growth can accelerate? First of all, I will let Venu comment, but first of all, I don't think there is anything that prevents us from having TCVs more than what we have right now. I don't think there is any constraint in that respect. As I said that if you look at our overall bookings continue to be healthy. As a part of our overall philosophy of closing large deals, strategic deals, we are always looking for creating more annuity opportunities, longer-term multi-year opportunities as we go along. That will continue. The only thing I would say is that there were some renewals this quarter. Every quarter there will be some renewals. Overall, this quarter is nothing different than the other quarter, except the fact that there has been better closing this quarter. Venu, you want to add anything? No. You're right, actually, most of our order booking or the approach towards the order closures that we do is usually driven by market downwards, not from what the supply model is based on. It's based on what our customer wants and what kind of capabilities that we can service them as we expand into more service lines within the four service lines, we extend more capabilities. Also into some of the new geos that we've already got into it last year, specifically the Europe part of it and so on, right? Hence, if you look at our average order booking is more or less fairly stable in terms of what we book on a quarterly basis. At the same time, there are few deals out there in the market. As the deal progresses, you will see those variations coming up in the quarter. It's usually not the supply push, it's sort of driven from market downwards in terms of what our customer wants. Thank you. Next question is from Girish Pai. Mr. Girish, please unmute. Yes. Okay. Girish Pai from Nirmal Bang. I just had a few questions regarding the TCV and the growth. Do you think the TCV will be in that $500 million-$550 million category in the coming quarter? Or will it kind of slip back to the $350 million-$400 million that you've been talking for many quarters now? The second is regarding growth. You've been talking about double-digit growth. Would you say that the growth expectation three months down the road is higher now compared to what you had, say, three months back? Let me answer the growth question first. I think we have been very confident to say that FY 2022, we definitely want to have a double-digit industry-leading growth. When you talk about growth, the first quarter kind of sets the tone to a certain extent. I can certainly say that we have got into the first quarter with a lot of momentum, and there is no reason for us to believe that the momentum will not continue. That's all we can share at this point of time. In terms of TCV, yeah, there can be some ups and downs, but at a broad level, we definitely feel that we are on a good trajectory in terms of also focusing on order books as we go along. There could be maybe one quarter we'll have more renewals, another quarter could be a little less. Overall, we feel very confident in terms of the way we are rebooking the orders as well. Again, Venu, do you want to add anything? No, I think you said it right, DC. That's the point which I mentioned just few minutes back, that I think it's important to look at order booking over the year, right? Will we do more order booking compared to the last year? That's our endeavor, and that's exactly what we want to do. Hence the growth as we're talking about industry-leading double-digit growth, and for that, you need to do more order booking than what we did last year. That's the best I think we can comment. It's very difficult to predict the three months timeline order booking numbers because depends on the customers and bit of seasonal variations and everything. For the year, we are very optimistic how things are looking. Thank you. Next question is from Abhishek Bhandari. Good evening. I have two questions. This quarter you had a robust employee addition. In last two quarters you've added quite a bit. Could you give us a pipeline of maybe the addition number what you have for the rest of FY 2022? Second question, if I heard correctly, you said you'll be rolling out differential hike maybe up to a certain level of the total employee pyramid. Could you give us a number in terms of what percentage of the employee base would be touched by that hike? Thank you. You want to say? Abhishek, on the hike front, up to a certain level it is going to be broad-based hike, and above certain level it is going to be selective based on the performance, et cetera. With respect to the specific number, of course we can't give it, but as DC said in response to one of the earlier questions, it is going to be in line with what the industry players are doing. Hiring. Sorry, can you repeat the first question? I was asking what is your broad hiring plan for the rest of the year, given that you've already added quite a bit in last two quarters? If you could give that number and just to clarify, is that also a preparation for maybe a potential rise in attrition, what you see as some of the peers are talking about? Sure. I won't say it is a result of one specific factor. There are multiple things that are happening. One is clearly there is a supply-side challenge in the market. There is a spike in demand that every IT player is seeing in the industry. As a result, we have taken several measures to make sure we are addressing the supply-side. One is internal capability building, which is upskilling and cross-skilling. We are also building capacity ahead of time by hiring both laterals, which is experienced people, as well as freshers. The hiring that we have done in Q1 is, of course, we are doing ahead of time, but is not a reflection of attrition. There are several measures that we are taking to make sure that we are engaging with our employees better. We are giving them better opportunities in terms of exciting engagements and also several other employee engagement measures that we are taking to make sure that attrition is in check. Thank you. Next question is from Vibhor Singhal. Yeah. Hi. Thanks for taking my question again. Perhaps back to my favorite question on the travel vertical. Just wanted to get your outlook on how basically the demand side or the queries on the travel vertical are shaping up, and specifically in the context that if I look at our travel revenue, we clocked around $31 million of revenue in the travel vertical in this quarter. If I look at pre-COVID, we used to be around $44 million, $45 million. We are just 10% below that number. Does that mean that There is only 10% of the revenue that we got which is yet to come in, or is it that we have got new clients, we added new business, and there could be more upside from the revenue that we had lost in the last year due to COVID, taking this revenue very higher than the latter? Yeah. Vibhor, your observations are absolutely spot on. I think, first of all, the travel vertical, which got very badly impacted as far as we are concerned when the pandemic hit. Because it was almost 17% of our revenues before the pandemic struck. One thing which I think we highlighted in the earlier calls that through the pandemic, the business did come down, the revenues did come down, but we did not lose any clients per se. We have very strong belongings to the clients. We have been working with many of the clients for decades. When things started coming back in terms of domestic travel, some leisure travel, et cetera. The other thing which also has happened in the travel industry is there is a lot of reimagining of business models, like contactless, for example, is something which is very big in travel. Some of the discretionary spend as and when they have opened up, we have been able to play a role in that. I wouldn't say that travel is fully back. I think we are still cautiously watching it because the pandemic is far from over and you know how things are. Suddenly there will be something happening where again there will be something to dampen the whole mood. We are watching it very cautiously. I can say that, given the investments that we have done in terms of our travel vertical, given some of the new logos also which we have won, and given the longstanding relationship we have, we feel very confident that as the market keeps opening up, as the industry keeps opening up, we will be also going to do better than whatever we have done so far. Venu, do you want to add anything? No, I think, just only one quick comment on the travel part is that most of the travels, that is back is the leisure travel. I think the peak business traffic is still not up there. I think that's really a good indication of stability in that industry, and that's what everybody's waiting for. Thank you. Next question is from Mr. Abhishek. Yeah, hi. Thanks for the opportunity. A couple of questions here. The first one is on the active client base. We are consistently seeing a drop in that number. Where does this stop? I mean, is the rationalization behind? The second question is on the offshoring. Now, offshoring is definitely helping gross margins. Based on our current order book, is there any change in terms of ramp-ups happening going ahead? The last one is on the deal closures. Though early for Q2, but are you kind of witnessing any change in terms of closures? Yeah. You know, European holidays are upcoming. Yeah. I'll let the deal closures be answered by Venu, and I'll let the offshoring be answered by Dayapatra Nevatia. Before that, on the rationalization part, Abhishek, I think this is a strategy that we adopted day one once the management change happened two years back, and I was very vocal about it, that over a period of time, we will rationalize the long tail where it is not a win-win for either the client or for Mindtree. We did slow down that a little bit during the pandemic, because during the pandemic, if you just close an engagement and the client has nowhere to go, that is not a good scenario. Having said that, just to give you one data point, from August 2019 till date, almost over the last two years, we have rationalized approximately 150 long-tail clients, long-tail accounts. I think we still have some way to go, and our intention is to make sure that we focus on a limited set of clients, limited set of strategic clients, and we have a program which is being run right now to ensure that we mine those clients and grow the revenues of those clients. We'll continue to rationalize the long tail, as and when there's an opportunity. There is still some way to go. I cannot just give you any more data at this point of time, but we will continue to rationalize the long tail. Dayapatra? Sure. On the offshoring, Abhishek, there is a clear shift that is taking place in terms of more offshoring. In the last one year for us, there is a shift of about 330 basis points that we have seen. Mainly the reason it is happening here is that one is the focus on large transformational programs, where we are able to do more work at offshore. Second is the focus on the long multi-year annuity deals that again helps us to do more offshore. Third one, of course, is remote working that is happening. It doesn't matter where you are actually delivering the work from. Now, going forward, as things settle to normal, our belief is it is going to settle somewhere around 85%, in that range. We are roughly around 83%-84% right now. Venu? If I understand your question correctly, I think is the order closure going to slow down because of the summer holidays, if that's the question, if I understand correctly? Yes. Was there any positive tailwind in 1Q because of the holidays in terms of closures? No, not really. I don't think the order booking of Q1 is not the reflection of the holidays that is going to come up in Q2. It's not that. In fact, typically our Q1 order booking is usually higher because, particularly when you look at the CPG customers, they run a lot of their summer campaigns and a lot of marketing campaigns get built up around this time. There's a huge amount of tech spend that happens around this time. Usually, the holidays always comes every year, so the budget cycles and the order cycles are always factors these holiday periods. Again, if you look at holiday period in U.K., continental Europe, and U.S., they're not at the same time. They sort of overlap a little bit, but spread over one and a half months. I wouldn't look at that as a reason for having any material impact on order book. I think any order book that we come about in Q2 will be the reflection of what customer would have decided to close within that timeline. Thank you. Welcome. Absolutely. Thank you for taking it. Thanks. Thank you. Next question is from Ashwin Mehta. Hi. Thanks for the opportunity. I had just one question. We've seen almost a 23% increase in headcount over the last two quarters. We also had a wage hike where we indicated there was almost a 240 basis point impact because of that wage hike. Our staff cost seems to have gone up only by around eight odd percent. How have we been able to manage the staff cost so tightly? Secondly, in terms of the skew of freshers to laterals, if you can give some sense in terms of how that's been over the last two quarters. Is that the factor that explains the staff cost not commensurately going up? Yeah. Ashwin, as I mentioned earlier, the major reason for what you're probably seeing, not the staff cost increasing in line with the headcount are for two reasons. One, there's a good amount of freshers. We have added more than 1,000 freshers this quarter, and the timing is towards the high end of the quarter. That's the one reason. Secondly, again, this headcount addition happens across the quarter, so it may not necessarily resonate with the end headcount and the overall cost going up to that extent. Okay. Just one follow-up in terms of the impact of wage hikes in the next quarter. Any quantification you can give? No. As DC mentioned, we are not going to call out that number, but we will be doing an increment at the junior to mid-management level in line with the industry standards. Our overall growth trajectory and profitable growth trajectory for the full year still continues to remain the same as what we have mentioned in the past. Thank you. We will take last two questions. Next question is from Vikas Ahuja. Hello. Yeah, hi. Thanks for taking my question again. Just one small clarification. The APAC and the Middle East was largely flat. Is it because we witnessed decline in India this quarter? If yes, are we expecting it to bounce back in the next quarter? Thank you. Venu? Yeah. Actually, it's not related to the second COVID-19 wave of India, if that's what you're implying to. If you look at our India and, sorry, APAC and Middle East presence, our approach has been very focused accounts and select few countries within that region. The seasonal spend of select few customers that we focus on in that region, it sort of reflects in the revenue for that particular quarter. It's definitely not related to the second COVID-19 wave impact as such. It's just seasonal for that particular quarter that some of these focus customers that we have in that region did not spend in that quarter. Thank you. Next question is from Apurva Prasad. Yes. My question is on the deal duration. How different would that be in Q1 compared to, let's say, FY 2021 bookings even? There's benefits certainly from the seasonal factors of renewals, but from a duration point of view, how would that be different this quarter, let's say, versus last year? Would you have more such AWS migration deals in the pipeline, more Top 20 AWS migration deals? Finally, on subcontracting, do you think the elevation is also driven by Top 20? In terms of deal duration, definitely the average tenure of deals that we have seen in this quarter is likely higher than what we have seen in the past, I would say. There are a lot of migration deals I can't call out. There are a lot of deals on the cloud in general. I'll let Venu provide additional color, and then on the sub con I'll let Nevatia speak. Yeah. Thanks, DC. Look, the duration as we've been saying it right from when the strategy was unveiled of 4x4x4 was to focus on increasing more annuity construct in our deals. We have deals which are ranging between three years and five years. That's one type. The second is that as it is reflected in our quarterly numbers as well, the cloud and customer success has actually grown much faster, and that's also appears in our future pipeline, too. These deals happens to be a good combination of a project duration, which goes for more than two quarters or so. Plus, it will be followed up with the annuity construct that you need to keep those environments running and so on. Look, our approach has been to increase more annuity ratio in our deal progress as much as possible, either it could be deliverables based or it could be duration based. Apurva on the subcontractors, it is not specifically linked to the two to 20 accounts. It is primarily because of the large deal ramp-ups that happened in the quarter, as well as there was a demand spike that we saw given our robust order book, where we did not have sufficient lead time to mobilize resources quickly as we planned, and therefore we resorted to subcontractor additions. Also, in certain areas, subcontractor addition is a very much part of the strategy as well. However, going forward, as we said earlier, we are proactively building the capacity. We are hiring ahead of time. We are building capability internally through upskilling and cross-skilling. We have also increased fresher hiring multi-fold compared to last year. All that will help us in managing the subcontractor cost going forward. Thank you. Next question is from Mr. Sudhir. Good evening, gentlemen. This is Sudhir from ICICI Securities. Vinit, a couple of questions to you. The incremental rupee revenue booked in the quarter was around INR 180 crore. If I look at the receivable number, this increased almost INR 150 crore. In a way, almost 80% of the incremental revenue booked is getting reflected as incremental receivable. This is perhaps the highest jump for several quarters now. This comes despite the share of fixed price projects actually going down from 71% to 68% on a sequential basis. What explains such a sharp rise in receivables in the revenue booked during the quarter? Is there any change in the revenue recognition policies so on and so forth? Secondly, just a clarification on how you calculate the DSO days. Either we take quarterly annualized number or quarterly number, we are actually seeing an increase in DSO instead of any reduction. Yeah. Sudhir on your first question as far as the overall debtors going up and the unbilled revenue going up. Yes. Though you are seeing in percentage terms, you may feel that our fixed price projects are relatively not increased. With the growth momentum that you are seeing, this number is on the higher side. Number two, there are many big projects which are in a ramp-up phase. That is also the other factor that is driving down some of the receivables whereby the milestones are much different compared to what you see in terms of the actual efforts that are being involved. Coming to your DSO question, DSO we have mentioned, we look at the quarterly revenue and look at the billed DSO, and that's what we constantly track as one of our metric from a receivables and collections perspective. Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference back to Mr. Debashis Chatterjee for his closing comments. Thank you. We are pleased with the progress of our robust and focused strategy to drive sustainable and profitable growth. This is helping us raise the bar on client centricity and cementing our position as a business transformation partner of choice, delivery excellence with agility, and differentiated culture and workforce. With a strong start to FY 2022 on all dimensions of our business, we remain very excited about the growing canvas of opportunities to envision and power agile and data-driven businesses that have consumer experience at the heart of everything they do. Our aspiration continues to be to deliver industry-leading double-digit profitable growth in FY 2022, and we are more confident than ever in our ability to realize it. Thank you. Stay safe and be in good health. Thank you. On behalf of Mindtree Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Exit the webinar. Thank you so much. Thank you. Thank you, everyone.