Ladies and gentlemen, good day, and welcome to Mindtree Limited quarter three FY 2022 earnings conference call. Please note all participants' line 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 your hand from participants tab on your screen. Please note that this conference is being recorded. I now hand over to Mr. Vinay Kalingara. Thank you, and over to you. Thanks, Aditya. Welcome to this conference call to discuss the financial results for the third quarter ended December 31, 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, Mindtree, Mr. Venu Lambu, Executive Director and President, Global Markets, Mindtree, and Mr. Vinit Teredesai, Chief Financial Officer, Mindtree. We will begin with a brief overview of the company's Q3 FY 2022 performance, after which we will open the floor to Vinay. Before I hand over, let me begin with a safe harbor statement. During the call, we could make forward-looking statements. These statements are considering the environment as we see today and are subject to risks and uncertainties as described in the company's earnings release. We do not undertake to update those statements periodically. I now pass it on to Debashis Chatterjee for his opening remarks. Thank you, Vinay. Good evening and good morning to everyone on the call. Thank you for joining us. Wish you, your families, and your colleagues a very happy and prosperous 2022. I hope all of you are staying safe and healthy. We are pleased to report strong revenue of $366.4 million, sequentially up 5.2% in constant currency in what is a seasonally soft quarter because of furloughs and holidays. In USD terms, our revenue grew 4.7% sequentially and 33.7% year-over-year in the third quarter. Our order book, comprising a healthy mix of annuity and transformational deals, stood at $358 million, up 14.6% year-over-year, taking our year-to-date TCV to more than $1.2 billion. Our EBITDA margin, a measure of our operational rigor and efficiency, came in at a healthy 21.5%. Profit after tax, or PAT, for the first nine months of FY 2022 stood at $158.8 million, exceeding the PAT for the entire FY 2021. Our revenue growth momentum not only validates the disciplined execution of our strategy, but also speaks to the broad-based secular demand for our digital transformation offerings. Our sharp focus on four service lines as a part of 4x4x4 strategy has helped us build integrated capabilities necessary for digital transformation at scale. Such transformation is iterative and delivered over multiple sprints. We are therefore seeing an increasing number of deals come with a long tail of growth evolving into larger strategic engagements. This is evident in the growth of our accounts. For example, when one of the world's leading sportswear manufacturers embarked on a journey to become a connected company for delivering personalized customer experiences across all physical and digital touch points, they chose us as a strategic partner. Though the engagement began with data and quality engineering services, we are today driving a range of highly complex and mission-critical digital transformation initiatives for the company. We are redesigning the company's e-commerce platform and digitalizing its value chain by leveraging diverse capabilities. These include core modernization, e-commerce and digital marketing, experience design, data analytics, artificial intelligence, cloud, automation, and digital security. The goal is for the company to stay ahead of changing customer behavior and market demands by adopting a data-driven direct-to-consumer model. In the case of a global consumer durables company, our role as a digital experience partner has quickly expanded across capabilities from digital commerce and marketing to DevOps, Cloud, and automation. As part of the outcome-based engagement, we are today responsible for delivering direct-to-consumer e-commerce applications across 18 global markets. Through our integrated capabilities, we are able to deliver faster deployment and robust performance, even through peak demand periods that see over one million orders a week. For a large insurance major migrating its customer policy system to the Cloud, we developed templates to model, provision, and manage cloud assets, substantially reducing the time to and cost of migration. We also migrated their customer data aggregation platform to a cloud-based data lake. As part of this transformation initiative, we leveraged our integrated capabilities across Cloud, Data, and Enterprise IT service lines. Let me now provide some color on the growth of various industry segments. Our communications, media, and technology business grew 6.1% sequentially and 24.5% year-over-year. We are helping communications service providers and original equipment manufacturers to accelerate the rollout of their 5G offerings, IoT platforms, and edge devices. We are enabling information media and entertainment companies to digitalize their content chains and scale direct-to-consumer platforms. We are partnering with technology companies to help them engineer, implement, and support innovative and intuitive products. In the quarter, one of the world's largest technology companies selected us as a preferred supplier for product engineering and cloud professional services to enable it to scale even faster. A fast-growing U.S.-based technology company chose us to provide product engineering services to accelerate time to market. One of the leading global hyperscalers has signed an annuity contract with us, as a part of which we will support product and platform operations and provide security services across geographies. Our strategy accounts in this sector have grown significantly, and we continue to sign on and scale new logos. Our retail CPG and manufacturing grew marginally quarter-on-quarter, following a very strong Q2, and grew 51.7% year-on-year. We are seeing good traction in consumer experience, core modernization, supply chain transformation, smart factory solutions, and intelligent enterprise resource planning. Connected experiences have gained prominence as a result of a long-drawn pandemic. This is driving the need for connected products, factories, operations employees, and supply chains to deliver real-time insights that can be leveraged for better productivity, supply chain fulfillment, and customer service. Connected ecosystems are also providing impetus to our IoT and edge computing offerings. In the run-up to its digital factory initiatives, we are selected as a partner by a global automotive manufacturer to transform its applications portfolio, leveraging Mindtree next capabilities. We signed an annuity contract with one of the largest home improvement retailers in the U.S. to support agile-based application development and maintenance. We were also selected for a digital transformation program by an Australian online automotive marketplace. Our banking, financial services, and insurance business grew 4.2% sequentially and 19.4% year-over-year, hitting an annualized revenue run rate of $250 million. Customers in this sector are increasingly driven by the need to realign technology portfolios, accelerate adoption of future technologies, modernize legacy infrastructure, and reimagine channel strategies. During this quarter, a large credit reporting agency selected us to build a specialty finance platform that help it drive rapid growth through differentiated data assets and new products. We were selected by a leading credit card provider in the U.S. as a transformation partner across multiple service lines, while a leading US fintech company chose us to modernize its core banking platform. A leading indexed annuity carrier in the U.S. selected us as a strategic partner to accelerate the development of new channels and elevate the customer service organization through superior digital experiences. Coming to our travel, transport, and hospitality business. We crossed the $200 million revenue run rate this quarter, growing 7.4% sequentially and 56.4% year-over-year. Revenues from this business are at pre-pandemic levels, and we continue to be deeply involved in key transformation initiatives at our customers and expanding our strategic footprint with them. Our relationship with one of the major American airlines is a case in point. It began with a quality assurance program. Today, we are working with them to optimize and transform their network operations to significantly reduce the resolution time for choke points, thus providing superior passenger experience. We were selected as a strategic partner by a global vacation company to create competitive differentiation in the leisure travel segment by transforming customer engagement across marketing, sales, and services for all its brands globally. Our strategy to diversify beyond the airline and hospitality sectors is yielding good results. We won deals with a rail company in the U.K. and a fast casual restaurant chain in the U.S. For a major Europe-based travel technology company, we are developing a platform that will enable its partners to manage its properties more effectively and respond quickly to changing customer needs. We are helping a global real estate franchisee and a brokerage service provider and a global provider of mobility solutions to reimagine their services portfolio and market positioning through data-led technology transformation. Healthcare, our youngest industry group, contributed $4.8 million to our revenue. During the quarter, we expanded our engagement with a U.S.-based managed healthcare and insurance company. We are advising the company on transforming its legacy system around order intake and supply chain processes into a cloud-first digital native ecosystem to accelerate growth and optimize costs. We continue to synergize our services, our service line capabilities for accelerating growth in the healthcare market. In terms of geographies, North America contributed 73%, Continental Europe, U.K. and Ireland contributed 18.6%, and APAC and Middle East contributed 8.4% of our revenue during the quarter. Among our service lines, Customer Success contributed 42.9%, Data and Intelligence contributed 14.8%, Cloud contributed 19.1%, and Enterprise IT contributed 23.2% of our revenue for the quarter. We won one of the largest data and intelligence deals this quarter. It involves delivering business finance performance management services to the CFO organization in a leading accounting and advisory organization. In the cloud space, we won 10 deals this quarter on the back of a significantly expanded relationship with a hyperscaler. We are partnering with one of the largest financial services and payment software companies as a managed service partner for its payment solutions, providing banks with an end-to-end payment-as-a-service offering, initially focused on the Nordics, the U.K. and Ireland. Industry and partner recognitions continue to validate our capabilities and experience. We were named as a major contender in Everest Group's 2022 PEAK Matrix® assessments for mainframe services, advanced analytics and insights, IoT services, supply chain solutions, and platform IT banking services. We also earned the AI and machine learning on Microsoft Azure advanced specialization. Our ability to bring innovative ideas and future-ready talent to support rapidly evolving transformation needs is what differentiates us. We are reorganizing ourselves to turn this differentiation into an even stronger competitive advantage. As a part of our ongoing endeavor to sharpen our strategic focus, operational agility, and customer value, we elevated senior Mindtree execs to larger roles this quarter. Radhakrishnan Rajagopalan was appointed as the company's Global Head for Technology Services, and Suresh HP took on the role of Global Delivery Head. As we enter the next phase of growth, we are strengthening our employee value proposition by driving a talent mindset across the organization and making talent an integral part of the organizational fabric. An important step in this direction is to bring the entire employee life cycle, ranging from outreach and recruitment to career development, under an integrated talent function. To lead our integrated talent program, we welcomed Suresh Bethavandu this quarter as the company's Chief People Officer. We also named Paneesh Rao as our Global Sustainability Head to drive our enhanced ESG commitment. We are continually building upon our highly engaged people-centric culture, aligned with our work ethos focused on purpose, caring, learning, and delivering results. We onboarded more than 4,500 Mindtree Minds this quarter, taking our global headcount to more than 31,900. For the quarter, our LTM attrition was 21.9%. To meet the growing client demand for our services, we have re-energized our recruitment engine. We are not only on track to meet our aggressive hiring targets for FY 2022, but also expect to significantly increase hiring in the coming quarters. As part of our work of the future talent strategy, we are also tapping into tier two and tier three cities and setting up offices in Coimbatore and Warangal. With a rejuvenated campus hiring program, we expect our hiring momentum from campuses to increase by 40%-50% through FY 2023. Mindtree EDGE, our unique learn and earn program for BSc and BCA graduates, continues to progress as planned. By remodeling and strengthening our flagship training program for fresh graduate hires, we have been able to accelerate freshers' deployment to client projects. The broad range of career and development opportunities resulting from our growing and diverse client technology and geographical footprint makes us an attractive employer. The power of our brand is also reflected in the sustained success of our employee referral programs. Our focus continues to be on complementing external hiring with internal talent development. During the quarter, external certifications were 50% more than those in the preceding quarter. Measures such as redefined career framework and role rotations continue to facilitate more effective career enablement. I will now turn over the call to Vinit for Q3 financial highlights. Vinit? Thank you, Debashis Chatterjee. Good evening and good morning to everyone on the call. Our strong financial performance in the third quarter validates the strength and continuous execution of our strategy. This is the fourth consecutive quarter of 5%+ revenue growth in constant currency terms. Despite seasonal headwinds this quarter, we grew all dimensions of our business and delivered strong EBITDA margin while continuing to invest in our business. In line with our endeavor to maintain 20%+ EBITDA margin, we reported EBITDA margin at 21.5% this quarter, compared to 20.5% in Q2 FY 2022. The 100 basis point increase in EBITDA margins over the prior quarter was due to 60 basis points from business growth and operational efficiency and 40 basis points impact of cross-currency movements. Our reported EBIT margin for the quarter was 19.2%, compared to 18.2% in the preceding quarter. The effective tax rate for the quarter was 25.5%, as compared to 25% in Q2 FY 2022. Net Forex gain for the quarter was $5.5 million. Profit after tax margin for the quarter was 15.9% as compared to 15.4% in the previous quarter. PAT in absolute terms grew by 32% year-on-year to $58.3 million. Earnings per share was INR 26.50 for the quarter, as compared to INR 24.20 in Q2. Our DSO for the quarter stood at 64 days. Our cash and investment balances were at all-time high of $412.7 million. For the quarter, operating cash flow to EBITDA improved significantly to 87.7% versus 63.6% in the previous quarter. Free cash flow to EBITDA was at 77.6% versus 52.6% in the previous quarter. Annualized return on capital employed for the quarter was 44.5%. Return on equity for the quarter was 36.2%. Our utilization in the quarter was 81.5% compared to 82.9% in Q2. Our contractual pricing for the quarter remained stable. As of December 31, 2021, our cash flow hedges were at $1.50 million. Hedges on the balance sheet were $145 million and options of $9 million. I now hand it back to Debashis Chatterjee for the business outlook. Thank you, Vinit. The demand environment for our integrated capabilities continue to be robust. Digital transformation and hyper-personalization remain high strategic priorities for our customers and continue to merit a significant proportion of technology spends. These investments are largely independent of market cycles and being driven by long-term strategic imperatives around delivering modern enterprise architecture, resilient infrastructure, scalable digital-ready foundation and innovative experiences. While it is too early to predict the impact of the evolving pandemic situation, we remain confident that our strategy of growing existing relationships, diversifying our customer mix and strengthening industry partnerships will continue to deliver meaningful results. Customers are looking for speed and agility in reaching the end state of their digital initiatives faster than planned. They are looking for flexible, nimble and transformation-first partners who can help them scale and scale fast. This is where we have an edge. We are confident in our ability to sustain our strong momentum, and our endeavor is to continue to deliver industry-leading profitable growth. 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 question may raise your hand from Participants tab on your screen. Participants are requested to use headphone or earphone while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from Vibhor Singhal. Yeah. Hi. Am I audible? Yes, go ahead. Yeah. Hello, sir. Thanks for taking my questions, and congrats on a great performance yet again. Debashis Chatterjee, my question was on the demand environment and the deal flow. We are hearing a lot about large deals being broken up into small parts by a lot of clients, and as you also mentioned, that clients are looking for nimble-footed kind of vendors who can turn around things quickly. How does that basically help us? I mean, we being in a sweet spot in terms of our size, we should be able to basically garner a large market share in that sense in of those deal flow. Our deal flow has been kind of stable, I would say, for the past two to three quarters. Not a very strong jump that we're looking at. How do you see this evolving in terms of translating into higher deal flow for us in the coming quarters? Thank you, Vibhor. Let me just start, and then I'll request my colleague, Venu also to add on. See, as far as the deals are concerned, the nature of digital transformation deals are more of iterative and very short cycles. Essentially what happens that you know, when you are selected as a partner, you are governed under a you know, overall master service MSA. But then, you know, you will be doing projects one after another. And, you know, once you start working on the projects and the needs are you know developing for the clients, you continue to build that relationship, and that relationship also becomes bigger and bigger. Though you may not be able to see a pipeline in the form of a multi-year kind of a thing to start with, the deals eventually transferred into a multi-year initiative and engagement. You know, the deals will come in terms of iterations. That's the way it is working. The good news is that, you know, we are, you know, at this point of time, if you look at the strategy that we have adopted, the four service lines, Customer Success, data, Cloud and Enterprise IT, you need all these four capabilities very strongly to provide the integrated capability to any of the clients. I think we feel, and some of the prepared remarks that you heard, a lot of opportunities where we are actually supporting our clients across multiple service lines, which is very important. Because if you have that capability, they'll even participate in this iterative deals and you know these smaller sized deals, but you know that there will be something which will follow. Venu, you want to add anything? Yeah. You know, just additional commentary that. You know, when you apply these requirements in the context of the sectors that we address, we are essentially trying to address the revenue maximization mandate of our customers, right? Hence the opportunity that is visible for us to go after is huge. You know, as our clients' revenue increases, because that's why people want to do digital transformation, so that they can enhance customer experience, they can build some good insight, use cloud as a catalyst, and so on. Since it is pretty much tracked to the client's revenue maximization mandate, unlike the run mandate, which has got a fixed budget and a declining budget, I think this budget, it will increase in line with the customer's changing revenue pattern. It's a great opportunity for us to be there. Though it is shorter and iterative in nature, you know, the sprints are numerous. Hence, it's a great opportunity for us to grow, you know, with that trend. If I understand it correctly, we're trying to say that maybe this entire deal flow or the strong demand environment might not be reflecting in the deal flow absolute number that we report. In the next few quarters, I think the revenue maximization part of that should definitely translate into higher revenues for us. That's correct. It's fair to say. Got it. Sure. My next question was to Vinit. Vinit, I think we've had very strong margin expansion. I think we're continuously surprising on margins front every quarter after quarter. If I just look at the margins profile of this quarter, I think our gross margin level also expanded and we're now well above 40% in terms of gross margins. There was also almost a 70 basis points-20 basis point benefit from lower subcontracting costs. I think subcontracting costs as a percentage of revenue has come down from, I think, 11.5% at the peak to now less than 10%. Just wanted to tie these two things up with the kind of supply side challenges that we have. Despite the supply side challenges, we know the high attrition which is there for us and the industry and the salary hikes that we have to give. How is it that we are able to expand our gross margins and reduce the subcontracting costs? Do you believe it is sustainable going forward as well? Yeah. Thanks, Vibhor. As you rightly pointed out, that the subcontractor cost is one of the operational levers that we are able to utilize it for scale up, scale down, and that has a pretty much good impact on the margins story. The second aspect is also the fact that we are able to get a good traction of freshers into the billable community, which is actually helping us in terms of managing our delivery, but keeping our costs at a minimal level. These two or three parameters, I would say, continue to remain, and our endeavor is to see more and more freshers get infused into the system and see how quickly can they be brought into the billable section. That has been our endeavor, and that's how we will continue. On the margin story, we have always said that, you know, 20%+ EBITDA margin on a sustainable basis looks something that we are looking to continuously aspire and deliver. That's where our overall planning exercise goes around. Got it. In this case, let's say in this quarter, like we exceeded that guidance and we reported around 21.5% EBITDA margins. Going forward, if our margins is comfortably ahead of our guidance, would we be looking to plow that some of that part back into the business in terms of, let's say, higher S&M spend to grow? Or we would just let the path of profitability take its own course? No, absolutely not. Our intent is definitely to see whatever margins we are able to make above 20% is to invest back into the business. It does not mean every quarter we'll be able to deploy that money back into the business. As and when the right opportunity comes in, we think we are geared up to make those investments and still deliver a profitable growth story of 20%+ that has been mentioned in the past. Got it. Can I just ask one more question? One last question on my favorite, Uh. Okay, sure. Yeah. Very pleased with it. I'll get back to you, Vinit. Thanks a lot, guys. Thank you. Next question is from Manik Taneja. Please unmute yourself, Mr. Manik. Yeah. Hi. Thank you for the opportunity, and once again, congratulations on the great execution. I just wanted to pick your brains around what's helping Mindtree to manage its subcontracting costs. For most of the industry, we are seeing subcontracting expenses go up. Just trying to understand what's driving this phenomenon for us. That's question number one. The second question that I had was with regard to the client addition trends that we are seeing. Since the time the ownership change happened, we were essentially focused on reducing the tail accounts, and over the last couple of quarters, we are seeing this trend change. Do you think we are past this phase of rationalizing the long tail of accounts, and now we should probably see expansion in terms of number of accounts? When do we start seeing progress in terms of customers moving to the higher revenue buckets? Because for all practical purposes, the number of $50 million or number of $100 million plus customers have remained unchanged for the last several years for the company. Thank you. Thank you, Manik. In terms of subcontractor costs, let me answer, and then I'll let Vinit add. I think Vinit has already answered that in the last question, but you know, this is an important lever that we always monitor. If there is a- If there's a spike in demands, then we probably have no other choice but to look at more subcons to cater to the demand. Again, when we do that, we also have an immediate plan to how to rationalize that over a period of time as once the fulfillments happen, we need to replace the subcontractors and get into more FT mode. Again, the pyramid correction also is something that we do. I will only say that this is not something that you know, that can happen only in one quarter. Because if you have heard our commentary, I have told earlier also that there is a very strong process that we have put in place where we monitor all the levers that is required to manage the margins. That is where the confidence is there, where Vinit says that and of course, I also believe, and I say that we can hold on to our margin band. Because we feel that we have the processes in place, the levers in place, the discipline in place where we can run the business in such a way, apply all the parameters and you know, still deliver the margins. I would say that this is just a part of the overall process that we have laid out. The subcontractor cost may go up and down, but it will get rationalized over a period of time. In terms of client additions, specifically, Manik, I must say that you are right. There was a time when we had to rationalize the long tail of clients. In fact, just to give you some idea, over the last, you know, ever since the management change happened, we rationalized more than 150 tail accounts, tail clients, from the time the management change happened. We have added more than around 75 new strategic logos. Essentially, it is our endeavor to ensure that we can get into more of, you know, $50 million accounts, etc. It doesn't happen overnight. But we have a robust plan with our account manning plan, the cross-selling and the upselling that we are doing, putting the service line sales strategy in the markets. With all these things, that's what we want to do. If you look at our fact sheet, the number of clients which are in the range of 20-50 as well as 10-20, that has kind of gone up a few notches this particular quarter, it will continue to happen. It's not to say that the long tail is completely rationalized when there are still some ways to go. Our endeavor is to focus on limited set of clients, focus on the strategic clients, do cross-sell and upsell, and put a strategy around the top 100 clients. That's exactly what we are doing. You will see the results. We have already seen the results in the last 8 quarters. We'll continue to see that as we go along. Venu, Vinit, you want to add anything? No, Debashis Chatterjee, I think you have covered. Yeah, you have covered this. Thank you, Debashis Chatterjee. If I can just ask one bookkeeping question, if you could help us understand the number of freshers that we added, that we've added this quarter as well as in FY 2022 year to date, because you spoke about probably looking at 40%-50% higher fresher intake in the next year. Thank you. Yeah, roughly, I would give a rough number of around 1,500 freshers are getting added per quarter. Thank you. Next question is from Dipesh. Yeah, thanks for the opportunity. A couple of questions. Just continuing on the previous question about fresher addition related things. Broadly, you are indicating around 6,000 fresher addition likely to happen this year. On that base, we intend to have almost 50% of that. That is right understanding or I misunderstood it? Yeah, see, the thing is, let's look at a macro level. At a macro level, you know, if you have to have your margin story intact, and if you have to focus on growth, and you also need to, you know, looking at all this macro at a broad level, we have to add many more freshers than we used to have in the past. From that perspective, as I explained in my prepared remarks, that we have designed a new structure now with a little bit of reorg and make sure that the entire talent strategy is owned by one person end-to-end. The number of freshers addition, it's not fair to call out a number, but we will see significant fresher additions as we get into Q4 as well as beyond. No, fair. Debashis Chatterjee, I just want to get the number, right? 6,000 is what's likely to happen broadly for FY 2022, right? It has not been completely 1,000-1,500 right from the beginning. This is the latest sort of run rate that we are talking about. If you have to look at this going forward, we do want to ensure that every quarter we are able to add at least this many amount of fresher populations. This is more for futuristic in next few quarters rather than in last three quarters? Yeah. Understood. Can you help us understand, because now we are focusing heavily on employee pyramid correction. Can you share some data which help us to understand? Because if I look our employee cost was versus considering industry-wide attrition and related implication on cost structure, our employee cost is continue to be lower than hiring. Number of people which we add, let's say this quarter 7.5% headcount addition, employee cost is up 5%. Obviously, pyramid is helping you, plus onsite ops on mix and all those things. Some of these factors playing out. If you can give some sense about how pyramid has improved for us over last four, five, six quarter, that would be helpful. I would again not specific to the numbers, Dipesh. As I said, more and more fresher addition is helping us in terms of getting infused into the system. The second part is getting these freshers quickly on their training and then onto the projects and getting them billed. We had quite so good success stories in some of our industry verticals whereby the fresher acceptance was very, very nice, and they have become a sort of a case study for the other industry verticals to sort of follow. We want to ensure that this continues. In today's world, if we want to sort of ensure that our employee cost base does not increase exponentially, then the fresher addition strategy is going to be the key for us, and we'll continue to add. At the same time, as Debashis Chatterjee mentioned in his opening comments, we are also trying to look at getting some talent in some of the Tier 2, Tier 3 cities like Coimbatore, et cetera. Mm-hmm. Which will also help us in terms of not only managing the demand, but also managing the attrition. Because these cities are traditionally having lower attrition rates compared to some of the tier ones. That's how I would say. Very good. Let me just ask it slightly differently. Now, generally, large scale companies, you add 50% of their gross addition as freshers. Midcap used to be somewhere around 30%. Do you think Mindtree has reached to a level where we can have 50% of gross addition as freshers? We have system in place, we have good visibility about demand, and this is a structure, let's say, we can implement over next two- to three-year perspective, whether we are on that journey. That is, if you can provide some broad color. Last question is about onsite offsite mix. If I look now, our offsite mix has reached, at least at FS, historically high level. How you think over next two- to three-year perspective, do you think this is more sustainable level we reach, or you think still there is a scope to improve further? Thanks. No. Dipesh, in terms of the journey, definitely we, our intent is to have more and more fresher additions. I won't call it by number whether we are there or not, but definitely from a journey perspective, if you look at FY 2021 and how FY 2022 has planned out, I think so definitely we have made a remarkable progress in terms of our connections with the universities, getting the first day slot, getting the best of the talent and all. I think so from a structure perspective, we are all geared up. Eventually, in the next couple of quarters as this plays out even more better, we will be able to add more and more people. I won't put a percentage at this point of time, but definitely we are geared up on that front. On your offshore onsite one, where it has reached a peak level. I don't think so there is right now a probability of this going up from here. At some point of time, when the international boundaries open up and travel start recovering, you will see a little bit of a onsite ratio picking up. When we say onsite, it does not necessarily mean the developed nations like U.S., U.K. It can be also to some of our nearshore development centers in Eastern Europe. Thank you. Thank you. Next question is from Mohit Jain. Hi, sir. two, three questions. One is on the CMT vertical. Now our dependence, and first, if you could talk about the top client, the outlook there and the CMT vertical overall, that will be helpful. Second is on the UK market. We had this phenomenal growth last time. Most of it was supposed to be recurring. We had this question last on call as well. Now there's some softness. Are we now, we crossed the hump, we should see growth from here on? Or what is your outlook broadly on the UK thing? The third one is on, is for Vinit, sir on, again, employee cost. I'll come back to that later, but if you could answer these two questions first. Your first question was, Mohit, was on CMT vertical or the top client? Sir, both together, meaning what is the outlook on, because top client is also accelerating. You said in a few days. CMT vertical outlook overall. Yeah. I think the commentary remains the same and consistent because, you know, the top client is a very strategic client for me. We are where we are because we are doing good work with the top client. The other thing is that when we say top client, we have to also understand that this top client is basically we are working in multiple LOBs within the top client. There are multiple stakeholders within the top client, and each relationship itself is a large relationship. We should always look at the top client as a set of multiple LOBs within the top clients. That's the way we kind of look at the top client. Since it is multiple LOBs, you know, some of the LOBs will grow faster than the others, and overall growth of the top client continues. Our endeavor is that top client should grow, but the concentration of the top client should come down slowly. The highest we had reached around 30%. From there, we have come down to 24% in terms of client concentration. Just from a, you know, from a growth perspective, if I just look at the year-over-year growth, I have also said that, you know, we should not just go for one quarter movement of the top client. Look at our overall yearly basis because there are cyclical things happening over there. Overall, at this point of time, if you look at year-over-year, the top client has grown around 17%. If you look at year-over-year, if you look at the next set of two-20 clients, the two-20 bracket, year-over-year, that growth is almost 41%. Which means our strategy of growing the top client is intact. But at the same time, our strategy of growing the other set of accounts through cross-selling and upselling and doing more effective account mining, doing, providing the, you know, selling the integrated capabilities, that is also being intact. I hope that answers the question, and I'll let Venu comment on the UK part. Yeah, sure. Look, I think on the UK part, if you actually look at it, you know, when we spoke last quarter, you know, we did speak about, you know, the continued demand that we see in supporting the major segment, which is where we have a lot of clients in the U.K., which is the retail and CPG segment. We saw that growth happening in Q2. Even if you look at from a year-on-year perspective for a corresponding quarter, we've actually grown more than 60%, right? The UK growth has been almost 65% plus on a year-on-year basis. You know, one particular quarter on a quarter-on-quarter basis, you know, is not really a reflection of any certain trend. It just happened to be that, you know, the retail and CPG sector, which is fairly dominant for us in the U.K., you know, clientele base, this is typically a peak period. Christmas happens to be the peak period. During this peak period, you know, the big transformation of the digital intervention projects don't happen because, you know, you don't want to disturb the business continuity, so you keep this period more as a freeze period. I wouldn't read anything more than that, you know, because this region has grown more than 60% year-on-year. I'm still optimistic about how U.K. will grow in the subsequent quarters as well. Perfect. A few for Vinit, sir. One is on this employee cost. If you look at the breakup in the notes, there's this provident fund amount which has sort of declined on a YOY basis. Is there a reversal or something which has happened or change in policy? Last year, if you remember, Mohit, we had made the provision for one of the provident fund accrual that was needed. That's the reason last year there was a one-time sort of a reclassification exercise that happened. If you look at from a normal perspective, there is no change. Sir, I looked at nine-month to nine-month also there was a decline. It looked like. It's the same, no? It's last financial year also. Second was on your receivable days, like, working capital seems to be going up quite sharply. So if you could help us understand, is this the new normal 80-85 kind of days, or do you think receivables will eventually come down? Last is on NxT. Was there some payout in the quarter because this was acquired last quarter, right? I was hoping that the payout would have happened in September. Look, on the DSO, it's a marginal uptick at this point of time. Our endeavor is to ensure that from a billed DSO perspective, it remains within the 60-65 days range, and that's what we endeavor to achieve. There are a few pockets whereby you face a little bit of an extended credit terms, but nothing but really to change the DSO. As far as the Next- Extended credit terms for a few clients, is it? few clients, there is an ask for a little bit higher credit period. This is for the entire MSA. Like, going forward also they will remain in that higher credit period. Some clients, again. Okay. As I said, majority of our clients continue to deliver the money in the requisite time frame. On Next, the acquisition was effective July 1, so it happened in the last quarter. The first payout happened in the last quarter. This quarter we just had a working capital marginal amount being paid on account of working capital adjustment, and that was the roughly close to $1 million which was paid. Otherwise, there is no other payment that has happened in this quarter. that payout is complete now, right? As of three Q? There's another payout which will be happening in Q1 of FY 2023. Can you quantify that, sir? It's roughly around, I would say $11 million. Roughly $11 million-$12 million. Understood, sir. Thank you. That's all. Thank you. Next question is from Sulabh Govila. Please unmute yourself. Okay, we'll go to the next. Next one is from Abhishek Shindadkar. Yeah, hi. Thanks for the opportunity, sir, and congrats on good execution. I just have one question. You know, our sales and marketing headcount is up 25% year to date. You know, our TCV quarterly bookings still continues to be flattish in the you know, $400 million range. Can you help us understand you know, the mix of hiring in terms of farmers, hunters? Where would the hiring be reflected going forward? Is it more you know, continued improvement in mining, or there could be a material improvement in our quarterly bookings? Thank you. Yeah. You know, this is Venu here. Let me take that. You know, if you actually look at our S&M headcount, you know, it's not just about having the account managers, client partners, BDM or service line markets, you know, leads. You know, the S&M headcount also includes the capability that you need to build to do the solutioning, to do the bid management and other aspects of the sales and marketing process. Hence it's not necessarily a direct reflection of number of people who are actually in the front. That's the first one. With regard to where the focus is going to be, look, you know, we've been very clear that we wanted to expand the wallet share of our existing customers as when we started the account rationalization. We made a very significant investment in actually in our client partner team, in our vertical teams, account managers, service line specialists, and so on. That investment will continue. As and when we acquire the new logos, we'll continue to over-invest in those accounts to expand. Also the existing relationship will bring the specialization to do that. That's how I look at it. You need the capability of acquiring the new customer as well. You know, at the same time, we also wanna make sure that we have the right team in place to expand our relationship with our existing customer. I really don't wanna pick which one would be the most investment area in terms of priority. Both are equally important. That's how I look at it. You know that this is just additional commentary I would like to make is that you know we also made some announcement with regard to the geo opening right. The Asia Pacific we got the new geo leader who's just about three months old in the system. So is the leader in DACH and so on. There has been some new teams which has come about over the last one quarter or so. Hence again it's too early to relate to those additional outcomes to the additional booking. You know the investments we are making you know is with the purpose that we'll continue to grow and you know we'll show the improvement on all these aspects. That's helpful. Thank you for taking my questions. Thank you. Thank you. Next question is from Ashwin Mehta. Yeah, hi. Can you hear me? Yes. Hi, thanks for the opportunity and congrats on a good margin execution. In terms of two questions from my side. One is on the travel vertical. That on a last 12-month basis has given us almost one-fourth of our incremental revenues. Now, given the Omicron scare, what is the near-term outlook of this vertical? Anything that you've felt in terms of your clientele here? The second question is around segmental margins, wherein the CMT margins have gone up by almost 280 basis points this quarter. What drove this disproportionate increase in margins and how sustainable that is? Thanks, Ashwin. Let me just provide some details. In terms of travel and hospitality, you know, there are a couple of pointers. One is we have been also trying to diversify in this industry segment and go beyond traditional airlines and hotels per se. We have been looking at you know surface transportation. We have been looking at food and beverage. We also have a lot of car rentals within this. Essentially it is that you know we recognize the need to diversify, and we have been doing that very consistently over the last you know three four quarters. The effect of Omicron is you know we are watching it very closely, and it is not evenly distributed within this sector. For example, if you look at car rentals, they're actually seeing greater tax traction right now. Food and beverage, hospitality are cautiously optimistic because of the, you know, situation. Of course, there are the softness that we see in terms of cruise liners as well as business travel. We are watching it very closely, but the fact that we have diversified gives us the confidence that we should be able to tide over it, you know, over a period of time. In terms of CMT specifically, I think you know, there are two aspects. One is, I think Vinit touched upon the subcontractor. I think we have been very conscious in terms of subcontractors can come in, but over a period of time, they need to be replaced. The other aspect also is that you know, there are situations where if there are very niche skills that we are providing for our clients, some of these niche skills are premium skills, and we are also able to, you know, bill differently for those particular niche skills. It cannot be just one factor. There are multiple factors like this which we look at, and that's why you see the uplift in the margin. I'll let Venu to add additional color if you want to. No, Debashis Chatterjee, I think you pretty much covered that part. I think the TTH diversification is probably I would emphasize it once more. Look, when we started recovering this revenue, you know, post-pandemic or during the pandemic, I would say we're still in pandemic, you know, over the last two years, the strategy was not just about recovering the revenue that went down in the first lockdown. The strategy was more about, you know, building resilience in the system. The diversification of TTH requires a new lens to look at it. You know, the kind of customers that we are onboarding are necessarily in the direct line of impact. You know, we're fairly confident in the short term. Of course, you can't predict how the new viruses or new set of variants would come about. Given where we are today, I think the diversification strategy would actually build the resilience in TTH. Thanks for the answers, and all the best. Thank you. Next question is from Vibhor Singhal. Hello. Yes, go ahead. Yeah, hi. Thanks for taking my question again. This is just one question. I wanted a bit of color on the retail and the BFSI segment, two separate segments, of course. Now, our retail segment, of course, we saw a very strong growth last quarter, and I think on the back of that base, I think on a Q-on-Q basis, I think this was more like flattish. Just wanted to basically pick your brain on this part that how is the growth looking in that segment going forward, as economies across the globe recover and the retail segment has seen kind of an uptick for almost all of our peers and overall industry as well. Secondly, I just wanted to understand our strategy in the BFSI segment. Now, given the size that we are, both in terms of our revenue and market cap, I think most of the other peers that we have have a higher share of BFSI revenue in their segment. BFSI tends to be the bread and butter of most of our IT services company. We tend to have a slightly kind of a differentiating profile where our concentration of high tech travel and these segments are more, and travel is relatively lesser than retailers. What exactly are the areas that we are focusing on BFSI, and what is our strategy for this segment? Not from a, let's say next two quarters point of view, but from a, let's say next three to four years point of view. Okay. Vibhor, let me just start, and then I'll request Venu also to provide some additional color. See, as far as the retail consumer goods manufacturing segment is concerned, yeah, it's kind of a marginal growth on a quarter-on-quarter. You know, year-on-year basis, we still grew around 52%. You know, one of the thing is we had a very strong Q2 in this particular area, in this particular vertical. The other thing which you also need to understand is, especially for retail and consumer goods, I think all the transformation initiatives they kind of take a back seat and during the holiday seasons there are a lot of freeze that comes into place. As a result of which, some of the initiatives that we are working on, that's just kind of put on pause. That doesn't mean anything, because that will again get restarted and already has got restarted as we get into the Q4. That is the reason why you see that it is flattish. From an overall demand standpoint, I don't think there is anything that you know we are concerned about. Of course, I mean, we have to watch the Omicron situation. That's kind of evolving very fast, and we are very cautiously watching it. In terms of BFSI, I would say that you know the strategy that we have adopted is first of all, we had to stabilize this. There were a big bit of consolidation that happened early days post the management change. We kind of went over that. Now it's in a growth momentum. What we are seeing over here is that customers are very focused in terms of realigning their technology platforms portfolios. They are very keen to adopt accelerate the adoption of future technologies, modernize the legacy infrastructure. There is a lot of demand. We will focus in terms of from a strategy standpoint, we feel that the four service lines, the integrated capabilities, that's definitely going to work. There is a lot of opportunities that we have through partnerships as well, through hyperscalers, as well as some of the industry leaders in terms of, you know, the vertical platforms, the product providers. We are in the process of doing a lot of partnerships so that we can tap into the, you know, this particular segment. Some of that we kind of articulate in the, you know, opening remarks. One thing which you have to also understand that this is a segment where it takes a little bit of time to build the relationship and grow the relationship. BFSI is one segment where clients tend to be with the, you know, respective providers and they don't change. It takes a little bit of time. I think our strategy is put in place and I'm sure over a period of time we will continue to grow in this segment as well. Venu? Yeah, just additional commentary is on two areas, I think which Debashis Chatterjee touched upon in the beginning, as part of the opening comments. The first one is the industry partnership, right? I mean, you know, we announced the Finastra- Mm-hmm. partnership, right? I think, you know, partnerships like, you know, we already had a partnership with Duck Creek, you know, from an insurance standpoint. Getting Finastra in the payments with regard to the BFS, you know, sort of strengthens our industry partnership story. That is something which I believe is a big growth lever, and we'll continue to look for more partnership. The second one again, which I think was touched upon earlier, was the modernization agenda, right? I think the BFS and insurance, you know, still have a huge amount of their tech, you know, they have a huge amount of technology debt, if I may say. Whether it's a mainframe modernization or legacy modernization, app modernization, cloud migration. These are the capabilities. I think we are much stronger than where we were before because we have delivered successfully for some of the insurance and banking clients. It's now just a question of replicating it across more clients and, you know, get that kind of growth we want in the BFS, you know. We are happy because this has been the first year of a positive growth after the last year when we consolidated it. Now that we have more strength and capability, you know, we leverage all that to grow it further. Got it. Thanks for taking my questions, and wish you all the best. Thank you. Thank you. Thank you very much. We'll take that as the last question. I would now like to hand the conference back to Mr. Vinay Kalingara. Thank you all for joining this call, and thanks for your continued support. Stay safe. You may now disconnect your lines. Thank you. Thank you. On behalf of Mindtree Limited, that concludes this conference. Thank you for joining us, and you may now exit the call.