Ladies and gentlemen, good day and welcome to Mindtree Limited quarter four 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, Head of Investor Relations, Mindtree. Thank you and over to you, sir. Thanks, Aditya. Welcome to this conference call to discuss the financial results for the fourth quarter ended March 31, 2022. 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 Q4 and FY 2022 performance, after which we will open the floor for Q&A. 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 carry a risk in terms of uncertainty, because of which the actual results could differ from those outlined in the quarterly financials available on our website. 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. We are pleased with our industry-leading profitable growth in FY 2022. Our ability to deliver solid business outcomes even during times of momentous change, uncertainty, and disruption validates our vision, strategy, and capabilities. Our three-pronged approach of accelerating core portfolio, expanding emerging portfolio, and incubating new portfolio has helped us sustain our growth momentum while staying ahead of the market trends and customer needs in delivering digital transformation at scale. Our fourth quarter revenue came in at strong $383.8 billion, sequentially up 5.2% in constant currency and 4.8% in USD terms. For the full year, our revenue grew 31.1%, and we delivered an EBITDA margin of 20.9%. Our EPS for the year was INR 100.2, a growth of 48.7% over last year. We ended the year with a healthy order book of $1.6 billion, representing a growth of 16.7% over last year. We are proud of our remarkable progress on the strategy growth levers outlined at the start of this year, driving profitable growth, wallet share, white space opportunities, geographic footprint, market penetration, and hyperscaler partnerships. During the year we added 33 new logos. With focused upselling and cross-selling, we grew the revenue share of our Focus 100 accounts to nearly 90%. The number of $20 million accounts doubled from 7 to 14. We incubated the health industry group and acquired Industry 4.0 capabilities through Mindtree NxT. In line with our rapid growth, we expanded our presence in Germany, Finland, and Denmark, and bolstered our nearshore capabilities in Europe with a center in Poland. We also expanded our delivery footprint in India with an additional facility in Pune and our first development center in Kolkata. Hyperscaler partnerships are vital to our value proposition. As a result of our aggressive investments in building industry-aligned hyperscaler capabilities and offerings, we achieved the status of ServiceNow Elite Partner in less than a year, launched as many as 13 solutions on Google Cloud Platform, and earned advanced specializations in analytics, AI, and machine learning on Microsoft Azure. As a born digital company, we have enjoyed an edge in driving next-generation technology capabilities and innovation ahead of the curve. We have been at the forefront of delivering differentiated experiences using blockchain, AR/VR, IoT, AI, geospatial, and other cutting-edge technologies. With these technologies now forming the building blocks of the metaverse, our innovative work provides us a natural headstart in advancing our proposition for this fast-growing ecosystem of alternative reality. We are excited to announce that we are increasing investments in metaverse solutions and capabilities to extend our technology and design thinking leadership into an integrated consulting-led metaverse offering. Complemented by our immersive technology experience center, Immersive Aurora, our metaverse offering will enable customers to accelerate and optimize their transition to the meta economy. To us, digital transformation at scale is about delivering continuous change and value from core to edge to experience, leveraging integrated capabilities and solutions informed by a vision of the future. Our growth narrative is powered by our ability to comprehensively fulfill this mandate. For example, a growing number of our Focus 100 accounts are now full-stack accounts cutting across all our service line capabilities. This speaks to our strategic relevance and effectiveness across the full spectrum of digital transformation. We continue to see an increasing number of deals evolve into larger strategic engagements. For example, what began a year ago as a story point-based omnichannel digital transformation engagement for a large high-tech multinational conglomerate has since expanded into enterprise IT and IoT platform development across different work divisions. A product development engagement that we began last year with a professional services company has quickly expanded into enterprise IT platform development in a studio model across all four of our service lines, leveraging our strong hyperscaler partnerships. In driving more complex change-focused digital work, customers are increasingly choosing us to address higher-end needs. A multinational bank and financial services company, for example, recently partnered with us on a broad range of digital engineering, MarTech, and regulatory requirements. Creating conditions for transformation to keep pace with the rapid market and technology changes is vital in the new normal. By adopting a product-centric model, we are enabling an increasing number of customers such as a large credit reporting agency and a global mobility solutions provider to align business and IT through customer and data journeys for faster innovation and time to market. We are actively enabling healthcare organizations across the health ecosystem to adopt the best of digital innovation and consumer centricity from digitally mature industry sectors for driving better personalization in this age of consumerism. Across all our industry groups, we continue to grow focus accounts, scale strategic new logos, diversify our customer portfolio, and pivot to outcome-based engagements. Our communication media and technology business grew 5.2% sequentially and 23.1% for the full year. This growth was driven by product engineering and customization, digital marketing, selling and commerce, enterprise IT platform development, and cybersecurity services. We saw continued strength in technology, where we helped our customers develop and roll out innovative and intuitive products. In communications, we enabled our customers to drive continuous product innovation and faster deployment, while the work for our media customers involved creating next-gen experiences leveraging digital technologies. Our retail CPG and manufacturing business was down 2.4% sequentially because of a ramp down in a retail account. However, we delivered a strong full-year growth of 45.4% on the back of continued demand for reimagining and maximizing customer journeys and supply chains as hyper-personalized omnichannel experiences and connected ecosystems of products, experiences, and operations rose to the top of their agenda. We enabled our customers to strengthen their H2H experience proposition powered by real-time insights and 360-degree views of the consumer and the value chain. The imperative to innovate and scale fast has meant more deals centered around agile cross-functional digital engineering ports. Our banking, financial services, and insurance grew 8.9% sequentially and 19.1% for the full year, with marked traction in accelerating future tech capabilities, reimagining experience, modernizing the core, and driving strategic data integration programs to enable new product innovation. We are enabling customers to become more like digital natives and reimagine their businesses with newer offerings. Our integrated capabilities, combined with pointed domain-specific offerings developed through partnerships, have strengthened our go-to-market strategy, helping us differentiate and win new logos, including tier one financial institutions in the U.S., Continental Europe, and Australia. Our travel, transportation, and hospitality business grew 9.2% sequentially and 54.6% for the full year. Our FY 2022 results crossed the pre-pandemic levels, driven by domain-led capabilities in customer experience, data intelligence and core transformation offerings delivered through a product-centric model. Many of our new logos in the newer subsectors beyond airlines and hospitality are well on their way to becoming the top clients for us. We enabled customers to reimagine and reinvent their business models to meet the connected consumers' needs for seamless experiences, hyper-personalization, health and safety, and contextual offerings in an increasingly contactless world. In its first year, our health business contributed $17.3 million to our revenue for the full year as our investments in building capabilities and opportunities pipeline in this vertical, together with our differentiated consulting-led approach, showed further results. In the latest quarter, we won four new logos, including one large digital transformation and product engineering deal with a leading American health services business. We recently made a strategic investment in COPE Health Solutions, a healthcare consulting and analytics leader in the U.S., to accelerate our growth in this sector by tapping into opportunities arising from value-based care, population health management, and personalized healthcare. In terms of geographies during the year, North America grew 25%, Continental Europe, UK and Ireland grew 58.7%, and APAC and Middle East grew 39%. Among our service lines in FY 2022, customer success grew 42.9%, data and intelligence grew 30.5%, cloud grew 29.4%, and enterprise IT grew 15.4%. Through FY 2022, we deepened our hyperscaler partnerships to deliver greater market impact, be it enabling a tech company to shape the future of travel, an online payment app to power an annual exchange of $2 billion with our bank affiliations, or a sportswear manufacturer to enhance customer loyalty and retention through e-commerce. In addition to expanding our domain and technology capabilities and partnerships, we doubled down on nonlinear growth opportunities led by platforms, accelerators, and consulting. For example, we launched an AI ML-powered platform for enterprises for all scales to manage their service experience in multi-provider environment. Our connected operations offerings spanning assets, processes, and personnel saw strong demand from customers looking to turn insights into actions through autonomous operations. We took a leap forward in helping enterprises transform their omnichannel customer service with our cognitive customer service suite that delivers intelligent agent assistance and real-time sentiment analysis powered by applied AI. To help organizations design, build, and manage intelligent security operations, we introduced consulting services around managed security operations center. We made aggressive investments in creating an innovation and collaboration ecosystem to facilitate the adoption of technologies such as blockchain, AR/VR, and low-code, no-code at speed and scale. Our new platform and framework-based offerings in testing and DevOps saw increased traction. To deepen our capabilities, we created centers of excellence in areas such as digital engineering and platform operations, while incubating solution groups with our existing customers. Many of these new tech offerings are getting embedded in our current solutions and have the potential to be large deals. Through the year, we were ranked highly in more than 75 analyst reports for diverse digital capabilities. On the supply side, we continued to augment our employee experience through more creative, agile, and personalized approaches to employee care, career development, and change management. We are pleased with the early results of our program aimed at identifying and grooming critical talent on an ongoing basis. It is key to our one-size-fits-one employee engagement and career enablement strategy, which consists of policies and processes customized to specific talent communities, and includes monetary as well as non-monetary elements such as role rotations, upskilling, and workforce flexibility. Our net headcount addition in FY 2022 was over 11,200, more than six times the headcount addition in the preceding year. We closed FY 2022 with a global headcount of more than 35,000. Through FY 2023, we expect our hiring of fresh graduates to increase significantly with our revamped training program for fresh graduate hires, including candidates studying in the last semester of their engineering degree program. We have already significantly cut down the time required to make early career talent ready for client projects. In FY 2022, our reskilling and upskilling initiatives, including key digital technologies such as AI, AR/VR, data analytics, and cloud, covered nearly half of our global workforce. Following a successful launch earlier in the quarter, our returnship program for enabling technology professionals to restart careers after a break with personalized train and deploy model is now being scaled to the next level. For the fourth quarter, our LTM attrition was 23.8%. Attrition continues to be an industry-wide issue. We expect the situation to gradually stabilize over the next few quarters. I will now turn over the call to Vinit for Q4 and full year financial highlights. Vinit? Thank you, Debashis Chatterjee. Good evening and good morning to everyone on the call. I'll begin summarizing a few of the highlights of the quarter. Continuing our consistent performance throughout, through the year, our sequential revenue growth was 4.8% in dollar terms and 5.2% in constant currency. This is the fifth consecutive quarter of 5%+ sequential growth in the constant currency. For the quarter, our reported EBITDA margin was 21%, and the EBIT margin was 18.9%. PAT margin for the quarter was 16.3% as compared to 15.9% in Q3. Earnings per share was at INR 28.7, compared to INR 26.5 in Q3. The effective tax rate was 24.5%. Our DSO for the quarter was at 60 days, an improvement by 4 days. For the quarter, operating cash flow to EBITDA improved to 92.2% from 87.7% in Q3. Free cash flow to EBITDA was at 82.7%, compared to 77.6% in Q3. Utilization was 83.1%, compared to 81.5% in Q3. Our order book in Q4 is $390 million. Now to summarize our full year performance, we ended the fiscal year 2022 on a strong note with a revenue growth of 31.1% in dollar terms. Revenue in rupee terms grew by 32.1%, crossing INR 100 billion, and with the EPS over INR 100. Our order book for the full year was $1.6 billion, an increase of 16.7% over FY 2021, and this positions us well as we enter FY 2023. For the full year, reported EBITDA margin was 20.9% compared to 20.8% in FY 2021. EBIT margin was 18.6% compared to 17.5% in FY 2021. PAT margin was 15.7% compared to 13.9% in FY 2021. Absolute PAT was $221.6 million, reflecting a growth of 47.7%. EPS for the full year was INR 100.2, an increase of 48.7% over FY 2021. Effective tax rate for the full year was 25.2%. As of March 31, our cash flow hedges are at $1.5 billion. Hedges on the balance sheet are at $184 million, and options of $6 million. Our cash and investment balance were at all-time high of $474.6 million. The board of directors have recommended a final dividend of INR 27 per share, taking the total dividend for FY 2022 to INR 37 per share. In 2021, Mindtree received a rating of double A in the MSCI ESG ratings assessment. We continue progress on ESG commitments that we have set out to achieve through 2030. In March 2022, India Ratings and Research affirmed the IND AAA rating for Mindtree for the second consecutive year. This is a strong recognition of our financial prudence, efficient working capital management, and governance practices. I now hand it over back to Debashis Chatterjee for the business outlook. Thanks, Vinit. Change is playing out at a breathtaking pace. Industry lines are blurring like never before. New businesses and revenue streams are emerging. New-age technologies are gaining unprecedented prominence. The urgency to shift from legacy to cloud is pressing. Organizations are more convinced than ever that the time to become more resilient and future-proof is now. Each one of these trends is creating more opportunities for us, and we are continuing to strengthen our position as a partner of choice by becoming more consulting-led, outcome-focused, and global in scale. Our focus going into FY 2023 will be on delivering even greater value to customers by dialing up full stack engagements, driving more effective sell to, sell with, and sell through relationships with hyperscalers, shifting from run IT to product-centric models, elevating our H2 experience proposition, enabling and unlocking the competitive potential of industry convergence, and strengthening next-gen delivery capabilities for integrated solutions. We are confident that our focused strategy, disciplined execution, customer trust, and team diligence will support our endeavor to continue delivering 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 a question may raise your hand from the Participants tab on your screen. Participants are requested to use headphone or earphone while asking a question. Request you to please state your organization name before asking your question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from Sandeep. Hi, Debashis Chatterjee, Vinit, and Venu. Thanks for taking my question, and congrats on a good set of numbers. How difficult is the manpower situation compared to what we have seen in the previous quarter? Where do you see this situation moving around? When will we be able to control this? That is number one. How much of this situation is impacting our execution as of now? Any idea on that? Third, right now, without travel supporting too much and hospitality supporting too much, we are able to post such a good number. When this comes and hire for us, where do you think the growth rates will be? Do you think that, you know, FY 2023 could be far better than FY 2022? Because a lot of these problems will probably resolve. Your views on these three will be very helpful. Thank you, Sandeep. See, first of all, as far as the manpower situation is concerned, I presume you are talking about attrition, which, as I called out, it is a phenomenon which is prevalent within the industry, and everybody has to deal with it in certain ways. You need to have your own strategy. You know, we have been able to demonstrate growth as well as EBITDA in you know in spite of whatever situation has existed over the last two, three quarters. We have got mechanisms to deal with it. I mean, there are various you know engagements that we do. We have been trying to do a control in terms of attrition. As I said, the LTM attrition is still on the rise, but we are hoping that it will stabilize and gradually come down over a period of time and which will help the overall situation. You know, having said that, I think it is also important for us to navigate through this in terms of whatever we need to do. For example, as a company, we have increased freshers hiring. We have also launched a program called EDGE program, where we are hiring a lot of BScs and BCAs and helping them to not only just work but also get a degree from BITS Pilani. A lot of initiatives have been launched to navigate through that, and we are hopeful that. We are very confident that we should be able to, you know, manage the situation as we go along. In terms of your other question on travel, actually, you know, interestingly, we are already, you know, at a revenue where we are beyond the pre-pandemic levels in terms of travel. I think the travel vertical has done fairly well and it has grown almost like on a, you know, if you look at the last four quarters growth, almost like a 10% CAGR growth across travel. We have expanded our travel vertical as in, we were initially focused on mostly the airlines and the hotels, but at this point of time, we are also focused on food and beverage, surface transport, so on and so forth. Hopefully, you know, there are logos that we have closed, which will also grow in our travel and transport and hospitality vertical. It's a little too early to call out anything beyond that. Our endeavor is to have, you know, industry-leading growth even in FY 2023 and industry-leading profitable growth. Beyond that, it's difficult to comment anything further. Venu, Vinit, you want to add anything? No, Debashis Chatterjee, you've covered that. Thank you. Next question is from Vibhor. Hello. Hi, Debashis Chatterjee. Hi, Vinit, Venu. Congrats on great set of numbers. Thanks for taking my question. Two questions from my side. The question for you, Debashis Chatterjee, is I think this year we've grown 31% year-on-year growth, the industry-leading growth that we have done this year, and you've guided to another industry-leading growth next year as well. This year, if I see, our growth was largely driven by the recovery in retail and the travel vertical, if I look at in terms of the percentage growth that these verticals reported. Going forward, FY 2023, do you believe the same verticals could be the driver of growth? Or as we have seen in the last quarter, a very strong pickup in BFSI. Could BFSI also be a strong proponent of the growth, industry-leading growth that we basically would be expecting next year? My second question is for Vinit. Vinit, just wanted to check about the salary hikes for this year. What is the quantum that you're expecting? When would they be rolled out? Specifically on the onsite salary cost, are they expected to be higher than before in lieu of the overall rising global inflation? With all that tied together, do we still maintain that 20%+ EBITDA margin guidance? Thanks, Vibhor. Let me just answer the first question, and I'll request Venu to chime in. As far as the growth in FY 2022 is concerned, I think it's fairly broad-based. If you look at BFSI grew 19%, CMT grew 23%. Of course, retail has been a phenomenal growth, about 45%. If you look at travel, you know, it had ramped down because of the pandemic, so travel had more than 54% growth. Overall, the growth has been fairly broad-based. From an overall future standpoint, also at a broad level, we expect the broad-based growth continue across industries, across geographies. Yeah, there will be aberrations from time to time, but at an overall level, I think the sentiments are fairly bullish. Venu? No, I agree, Debashis Chatterjee. Look, I think we wanna grow across all the sectors, and considering that, you know, we have the newer sectors like healthcare, which is really just coming out of its incubation period, so there's so much to grow in that. You know, so is the case in terms of the value we can create for retail and CPG customers, high tech, you know, as well as, you know, the BFSI. It's really hard to pick up which sector will grow faster, but, you know, there is a demand outlook which is sort of consistent across all the sectors that we are focusing on. Got it. Yeah. Vibhor? Yeah. Yeah. Thanks for the question. You had two questions, mainly on the salary hike, both offshore, on-site, and timing. Our endeavor is to stick to the salary cycle in the second quarter of the next financial year. We put salary hikes to be in line with the industry requirements. At this point of time, after considering all that impact put together, our endeavor is to still aspire and deliver, stick to that 20%+ growth. Got it. On the on-site level, is there any incremental pressure that we are facing because of supposedly higher global inflation and which might require us to give higher salary hikes than before? Nothing different than what we are seeing at this point of time. Okay. Got it. Great, sir. Thank you so much for taking my questions, and I wish you all the best. Thank you. Next question is from Vimal Gohil. Yeah, thank you for the opportunity. My question on demand and attrition has been answered. Just a question on cash flows. So if you could just highlight, so the OCF, operating cash flow, if I look at the operating cash flow, it has sort of dropped this time around led by, you know, higher trade receivables. Matter of timing or how should we look at the free cash flow conversion or OCF conversion, just going forward? Thanks. No, I think our cash flow conversion, what you're seeing for the full year is basically because we had a lag in the first quarter of this FY 2022, and that's what has impacted the full year. If you look at the quarter-on-quarter, actually our free cash flow as well as operating cash flow has improved quarter-on-quarter. Sorry, your receivables should normalize going forward when we are- I think this is our sweet spot of 60-65 days. That's what we intend to look at it and we'll try to maintain our DSO within that range. Fair enough, sir. Thank you so much and all the very best. Thank you. Next question is from Manik Taneja. Hi, good evening. Thank you for the opportunity. Am I audible? Yes, we are. Yeah. Thank you for that, outlook on the margin front. If you could help us understand what margin or operating levers actually will probably be a tailwind for you going into FY 2023 and what could be a headwind. Also if you could talk about how should we be thinking about subcontracting expenses for us, because in the last couple of quarters we had seen a decline there, this quarter we've seen an increase. What's driving the quarterly volatility here? Thank you. Manik, the fundamental thing is that when you talk about margin, you know, and I think I have addressed this in my previous commentaries, is that we have a pretty robust program to look at margin in a very systematic fashion and, you know, look at all the levers that contribute to margin improvement. You know, all the levers may not be firing all at the same time, and all the levers may not be even applicable to all the industries or the service lines at the same time. The good news is that we have a good handle in terms of how we manage margin from, you know, over quarters, and I think we have demonstrated that over the last several quarters. To your specific question in terms of headwind and tailwind, I think I would rather like to look at, you know, there are certain levers in terms of margin where there are certain cost levers and there are certain levers which can help us in terms of revenues from our clients. Like for example, if you are talking about billing rates et cetera, that will be something that we'll continue to consider as a revenue lever. You know, for niche skills et cetera, we do see in pockets where we are able to command a premium. That helps. If you look at some of the other levers which are cost levers which could be utilization, which could be pyramid, again they will be kind of working in tandem to ensure that we can have a good control on the margin. Because we are also very keen to make sure that we invest in our business as we go along. Specifically since you talked about subcon, the role of the fundamental issue is, you know, we get subcons because we want to ramp up some engagements in a very fast manner in a very short time. And that's where we need subcons. If you continue to have subcons for a longer duration in the engagement, then obviously it will tend to dilute your margin. I think the way we have run our margin program is to ensure that, you know, if you have subcons, get the subcons, but get them also off at some point of time once the situation stabilizes and you're able to replace them with FTs. That's a normal process that we follow. I don't know whether I've been able to answer your question. Vinit, do you want to add anything? No, I think, Debashis, you have covered most. Two, three more levers I would say. As you know that, in the last couple of quarters, we have actually been pretty much fast tracking our flattening the pyramid strategy. We have been adding more than 1,500+ freshers per quarter. We have also been able to ensure that many of them are able to get billed, absorbed into the projects and get billed on a very quicker note. We do get certain premium pricing for certain niche skills. So these are all the tailwinds that we'll continue to look at it. As we said that though there are a few headwinds in terms of operational costs like travel, offices, et cetera, that will at some point of time return. We don't anticipate that they are going to come in one go and we are going to be at the pre-pandemic levels. We are having a stringent discipline as far as our travel and travel costs are concerned. We are sort of reducing the footprint, though we are increasing the sort of a diversity of available office options for people. All these put together are definitely helping us in terms of giving us that confidence. Sure. Thank you for that answer. If I can ask one more. If you could talk about, we recently made a minority investment, in the U.S. If you could talk about the strategic rationale for such a thing. Thank you. Venu, you want to. Yeah, sure. You know, let me take that question. Look, I think the investment that we made in COPE Health Solutions is in line with the strategy that we had in terms of how can we grow our healthcare business. One of the strategic capability that you need actually to sort of grow the healthcare business is an access to domain capabilities, right? You know, the COPE Health Solutions is pretty much focused on the payer and the provider market segment. You know, they come with very significant capabilities in actually advising customers on the business strategy, which involves you know, applying a lot of domain solutions and domain context. You know, we have invested in that company and you know, we have a representation on the board and we have a joint go-to-market defined along with them. You know, it gives us a great opportunity actually to combine our technology and digital capabilities, bring in the COPE Health domain capabilities so that we get the jump start into our newer sector, right? You know, this is something which is used more as a springboard, you know, to get to the core of the healthcare customer base with the complementary skills of both COPE and Mindtree. Now, that essentially is the rationale, you know, why we went about it, and we're already working with them in a few customers as we speak. I You know, all the best for the future. Thank you. Thank you. Next question is from Vikas Jadhav. Yeah, hi. Thank you for the opportunity. I have only one question. Normally, now if we see globally, many companies have started highlighting cost impact, led by maybe macro risk inflation in the U.S. or maybe slowdown in Europe. Do we think the cyclical headwinds emerging could, in the near term, derail what otherwise would have been a strong structural trend? Are we building in any risk around it, which means our growth could be materially different from what we have achieved in FY 2022? Sorry, DC. No, go ahead. Okay. You know, I'll comment about the growth and, you know, Vinit, you can chip in with regard to the, you know, risks regarding the margin and so on. Look, as we speak today, you know, we have a robust pipeline, you know, which we are confident that it'll continue to strengthen and it'll continue to grow in the near term, right? It's very difficult when you're sitting in the beginning of the year to comment in terms of how the Q3, Q4, what will be the demand outlook at that particular quarter. At least, you know, in the near quarter, I don't see any headwind with regard to the, you know, the demand or the pipeline size that we have. It continues to be robust, and, you know, so we are confident of that. Look, whether there is an inflation problem or there is a need to access customers faster, you know, the technology plays an important role both to drive the cost saving mandate as well as to enhance the revenue maximization mandate of our customers, right? I think it's just that you need to have the solutions and offering portfolio that can actually address both the mandates. If you're having those kind of conversation with customers, I'm pretty confident that, you know, we'll continue to have that kind of traction going forward, either to address the efficiency part or to address the, you know, change part using the digital capabilities. No, nothing I think we can comment. No. Okay. Yeah, you know, those are the comments that I have. Sure. Vinu, also, you know, just assuming in case of no macro impact, do you think if we exclude the, you know, pent-up part in FY 2022, we can replicate what we have achieved in FY 2022 in FY 2023? Look, you know, I think DC covered in the initial briefing that our endeavor is actually you know to deliver the industry-leading growth as we go into the FY 2023. Yeah, that's aspiration, I would say, right? That's a goal we will work towards. Sure. Thanks a lot. Thank you. Thank you. Next question is from Mr. Nitin. Yes, Nitin. Yeah, hi. Good evening. Am I audible? Yes. Yeah, great. My question is around pricing. Just wanted your thoughts on that. One is obviously existing contracts, newer contracts, and obviously there are some where there are inbuilt productivity benefits. If you could just give a sense in terms of how you are thinking about how this sort of filters through on a portfolio level on a going forward basis. Second, considering that there is a lot of inflation-led headwinds for customers, just thinking out loud, as we go towards the tail end of the year, if those inflation rates sort of hurt their earnings, the ability to get pricing becomes possibly a little more difficult. How are you visualizing the flow-through of pricing into, you know, the overall portfolio? How should we think about it from a Mindtree portfolio perspective? Look, you know, there is a pricing element which is related to, you know, the niche skills, right? If you look at the niche skills, are predominantly focused on, helping customers to transform into the digital models, right? That means they're essentially addressing the revenue maximization mandate, right? If those skills are oriented towards the revenue maximization mandate of our customers, there is an appetite for clients to actually pay more, right? If the skill sets are related to addressing the efficiency mandate, we know where you're supposed to drive the cost down, either through automation, increased productivity, or in some cases, you know, even the rates could get under pressure, as you rightly mentioned, that every You know, most of the customers when they're facing the headwinds of inflation, they look at, you know, how much cost they can reduce in their businesses. I think it's, you know, there is going to be a pressure in driving savings in the legacy or in the traditional, you know, part of- The scope. There will also be a significant investment dollars coming in the digital space, right? I think it's all about balancing it right within our portfolios, right at the account level, and then growing it up to the sector level. If we can get those balance right with the right capabilities using our core service plans, you know, I think some of the headwinds we might face with regard to the cost-saving pressure, we can mitigate it by focusing more on the digital dollars, you know, that we can get. That's it actually what I would- Just to sort of maybe ask in a different way. If you look at the wage inflation or the salary inflation that you could see this year, do you think the whatever increase in realizations that you may see will completely offset that? Or do you think it'll only partially offset that? How are you seeing it? Look, it's difficult to say a like-for-like, you know, offsetting part of it. You know, I think the wage inflation, you know, whether it's in India or outside India, you know, is one aspect of it and how do you manage that cost. You know, the pricing is more about what customer pays you for a certain skill sets, right? So hence, I do believe that, you know, it's not fair to start relating to the like-for-like, mitigating of the cost element, but I can only say there is an opportunity for increase in price for certain risk skill sets. You know, and it's left to us in terms of how much we play that part of the business more while balancing it out on the cost-saving part of the business. Sure. Understood. Fair enough. Thank you so much, and all the best. Thank you. Next question is from Rishi Jhunjhunwala. Yeah, hi. Thank you. Can you hear me? Yes. Okay, cool. Thank you. Couple of questions, guys. First of all, on your hiring. You know, your headcount growth this year has been almost 47%, and it's not like it is coming on the back of under hiring that you might have done in FY 2021. On top of that, versus pre-COVID levels, your subcontracting expenses are also up. How do we read this, you know, this significant delta between headcount growth of 47% versus revenue growth, which was more like at, you know, 31%, so it was 16% higher growth? Does it mean that, you know, for next year, unless we are going to grow substantially better, the headcount intensity will drop significantly? Let me take a stab at it and then, Vinit and Venu can, chime in. I think, you know, we all acknowledge the fact that there has been, the attrition has been one of the challenges in the last 3, 4 quarters. What you see in terms of, numbers as you described are just to ensure that, we cover for the attrition. You know, as we control the attrition, as the attrition numbers come down, I think the difference that you see over there, should be also reducing. Now that's one aspect. The second aspect is that from a business standpoint also there are a lot of you know opportunities which are purely outcome based and you know which are tied to business outcomes of clients. As we do that, we should be also de-linking the headcount and the you know other revenues towards that next year. That is also something that will help as we go along to you know change those numbers as you described. Vinit, anything? Yeah, Rishi, also for that large section of our attrition is also contributed because we have done a lot of fresher hiring as compared to the past years. That is one important element that you should keep in mind. Subcontractors, as DC mentioned, is something which we sort of pick up and put down depending upon how the requirements is. Subcontractors are typically brought into play when you have to ramp up very quickly. But a very disciplined amount of sort of a contractor cost management is something that we manage very well. We have a program that constantly controls and manage costs to ensure that the attrition at that front. The last part is a lot of hiring is also in to ensure that we are building a capacity for our demand that is and the pipeline that is with us. In today's market when the talent is absolutely a critical part, we have to ensure that this is one part of the investment that we have to ensure that we have built in our numbers so that, you know, we are able to take advantage of the boom that's coming our way. Sure, sir. You know, I understand the logic behind hiring. The only point I was trying to get a clarification was that in case, suppose next year you're looking at a 30% revenue growth, in order for you to balance out the additional hiring you have done this year, effectively next year hiring will be less than 15%, right? Is that a right understanding? That's not correct because, say, if the growth is on the same lines as what we have delivered in FY 2022, then the hiring will also be in line with that because that is all from an incremental perspective about how we'll be entering the subsequent year, you know? Hiring is always done right now ahead of time. I don't see you should correlate that two points. Fair enough. Just, very quickly, you know, your hedge book has gone up substantially if you look at it versus one year ago and two year ago. Of course, to a large extent also a reflection of your revenue growth. At $1.72 billion, with a hedge rate of 82%, if rupee were to remain at INR 76 for the next couple of years, we are almost looking like INR 1,000 crore worth of hedging gains. Is that the right way to look at it? Yeah. It's also. We have also slightly extended our period of hedges from earlier 3 years now to look at certain portion of hedges towards fourth and fifth year. That's on a constantly rolling basis. As you know that we actually accelerated our hedging program in a structured and disciplined way since the beginning of last year. That's what we are seeing now. What we are right now doing is only 70% of total net exposure that we are forecasting in the future years. Okay, thank you. Thank you. Next question is from Siddharth Bohra. Hi. Can you hear me? Yes. Yes. Thank you for taking my question. I also had a question around the healthy employee additions you had this quarter. It shows a number, even if with that addition we are on a higher utilization base. Have you added more on the laterals which are getting on the job very fast? The kind of fresher additions you would have done for the year, what would be that number? Yeah. See, I won't specifically comment. I can give you. When we do the hiring, we do a combination of hiring. In the last two to three quarters, our hiring on the freshers is roughly in the range of 1,500+ per quarter. So that's how. That has been consistent in the last two to three quarters, so you can take that as a number as a base and do the rest calculations. Sure. Your employee addition. In terms of that employee number as well, your utilization's at 83% has been the norm for like last 4-6 quarters. You expect that level to remain or you want to lower that? No, see, utilization is all. Today, if you look at our book-to-bill, that period is pretty, you know, small. You know, we are able to get our people billed on a very quick note. We are also able to get our freshers who are coming after the initial training getting billed on a very quick note. All these put together are definitely helping us in terms of a higher utilization. Ideally, our comfort level of utilization will be in the 80%-82% range. That's where we'll be looking at. At some point of time, that normalization will also happen. Sure. One more thing. Your employee client buckets have seen a very strong improvement this year. Commendable job. It's sustainable and you should see this client mining benefits continue, any one-off over there? No one-offs, definitely. We are looking at basically you know, in the last 2-3 years we have rationalized some of the tail accounts, and that will continue as a part and parcel of our strategy. I think so we have done a pretty significant number of tail account rationalization. At the same time, we have also added new logos and new clients, and that exercise will continue. Our account mining strategy is definitely going to continue even in the future. Sure. Really helpful. Lastly, even in this quarter, your efforts have continued to shift offshore and not on-site in spite of sub-con costs being there or not seeing huge deviations. Anything to call out over there? It's a stable number which you will continue with? Yeah, at least in the initial part, we are not looking at our clients asking our people to return back to offices yet. It's only in very few pockets we are seeing that phenomenon. I'm sure as the COVID subsides in the European and the other regions, there can be a potential increase in the second half for people to increase. At that point of time, there can be a shift between the offshore/on-site ratio slightly. Okay. That's it. Thank you for answering all my questions. Thank you so much. Thank you. Next question is from Abhishek. Hi. Thanks for the opportunity and congrats on a good execution. Just two questions. Vinit, you mentioned that your ability to convert the bookings to revenue is much better. So should we read that, you know, our mix of short tenure deals has gone up in the past few quarters? That is one. Second is, you know, kind of what, you know, what's the thought in terms of, you know, our fixed price contract type has seen, you know, almost a 4% reduction and we are increasing time and material. You know, what are clients doing with us or, you know, because the general thoughts were that, you know, increasingly more FPP kind of work is happening, but we are seeing a change in our contract type. Any color there could be really helpful. I'll take the first one. I'll take that. You know, I think the first question and the fixed price part are sort of interrelated, so I'll give general commentary, and you can add, you know, further to that, Vinit, right? Look, if you actually look at it, the point about having an opportunity to realize revenue at a much faster pace from the point of order booking is coming due to the nature of this work that we actually do, right? Most of the work, if it is getting pivoted more towards digital transformation, the concept of a long-term transition that you associate in a traditional IT services, you know, is not there in most of the scope, right? Hence you know, your day one is essentially your revenue kickoff time, right? You know, that's essentially is the context when we make a comment that, you know, we have a great opportunity in quite a few deals where, you know, we can realize the revenue at much faster pace than you associate with the traditional You know, deals can kind of be constructed purely because of the kind of digital work that involves without a transition. That is also the reason in my view, you know, which is leading to the fact that see, when we talk about a digital transformation, you essentially have an end goal in the mind. That's an end vision. That's what customer defines, you know, along with us. The journey is something we have to navigate together. When you start a journey of digital transformation, you know, the scope at every milestone is not hardly defined, right? I mean, it gets defined, it gets evolved as you start working on towards that. You know, that is also the reason why customer would like to start with a T&M kind of a construct. As the scope gets cleared and, you know, it sort of attains a sort of degree of certainty in terms of both duration and the quantum of work and the nature of work, then it tends to get converted into a fixed capacity or a fixed price kind of a model, right? I thought I'll just, you know, sort of correlate to the first aspect of it, in terms of why it starts at a short deal and then it ends up being a large engagement, and also the kind of contract that it involves throughout the journey. The other thing is, I think so for us, you know, both fixed price and T&M are both we need to do a balancing act between both of them. Fixed price engagements helps us in terms of getting some good margin leverage, while on the other hand, the T&M helps us in terms of it does help also on the margin, but also mainly importantly, it also helps us on the cash flow part of it. We'll like to strike a good balance between both of them and which will help our business in terms of growing. That is helpful. You know, if I can ask a follow-up to Venu. You know, if I look at the, you know, transaction price data that you've shared, and, you know, that number as a percentage of, exit revenue, it's almost doubled now from, you know, it's almost 52%, versus 29% at the end of Q4 2021. Does that mean that, you know, our visibility is substantially better, at least for the next 12 months? That is one. Second, conversely, you know, we have been able to maintain margins despite a drop in FPP. Would that mean that, you know, once these short contracts become FPP, as Venu highlighted, that gives you additional lever for margins for FY 2023? On the first question, with regard to the long-term visibility, it's very difficult to, you know, comment or even give any steer on that for something which is three or four quarters down the line, right? You know, our endeavor is actually trying to see that, you know, one is how can we increase our book-to-bill ratio, how can we increase, you know, faster revenue realization against the order that gets booked. Especially in the context that in the near term, you know, we have a healthy pipeline. You know, that's, you know, that should give you a color, you know, in terms of how we see it in the near term, but anything 12 months, I guess it's very difficult to comment or predict. Let's see, it's yeah, in theory, yes, fixed price contracts, as I said, does help us in terms of getting some margin leverage. It all depends upon when and what time it comes in. Yes, in theory, yes, what you're saying is right. Your assumption is right. It helps us. Great. Thank you for taking my questions. Best wishes for 2023. Thank you. We will take last question from Apurva Prasad. Good evening. I hope I'm audible. Yes. Great. Thanks. DC and Venu, you touched upon this part, but just sort of wanted to get your thoughts just on the short cycle deals especially in the economic uncertainty environment. Do you see a bigger impact on the discretionary side of the spend, particularly on the customer success area? A part of this is probably can get reflected in the TCV. It looks like the correlation is not as strong as earlier. Do you see that correlation between TCV and growth breaking because of the short cycle deals? I think let me take a stab at it. I think. See, as Venu explained, when you go on a journey of digital transformation, there will be short cycle deals, but you will eventually have to work with the client and you know, client has a vision and you cannot leave it halfway. You know, what happens in a typical TCV deal is kind of sign up as a managed services for three to five years or whatever, you know, and you have a visibility in terms of what is the revenue that can come. In a typical short cycle deal, once you are chosen as a digital partner for the client in terms of the digital transformation, you may be seeing the short cycle deals, but if you add 2, 3 years of work that we do, it kind of translates to kind of a TCV, which you did not have a view earlier, but you have a view you know over a period of time. So that's one thing which you need to keep in mind. You know, we watch this space very closely, and we are working with our clients also very closely. If there are scenarios where, you know, things do change, I think things may slow down a little bit, but that also might help in terms of getting some managed services constructs because clients may be again getting into the cost pressure. I guess, what Venu was articulating and what we watch very closely is that we need to play in both the areas. One is how do you help in terms of clients maximize their revenues by participating in some of the transformation deals. At the same time, we need to also keep an eye in terms of can you participate in more managed services constructs which may be more tenured, maybe multi-year opportunities, but which will also be an efficiency play for the client. I think we are capable of playing in both these areas. I think that's where we want to leverage, and that's where we need to make sure that we balance it out clearly. Does that And- Question? Yeah, yeah. That's helpful, DC. Just finally, you spoke about, you know, the full stack accounts building, focusing on that and the product development expanding to enterprise IT scope. Any metrics that you can share around this, and how this is progressing? I think. Finally, on the top 6-10 client bucket declines, how should we read that? Well, I think, you know, the first thing is as far as our strategy is concerned, we have very clearly laid out that we want to, you know, restrict ourselves to a focused set of clients and do more cross-sell and upsell. I think that is reflected in the fact that 90% of our revenues, INR 1.2 billion out of overall INR 1.41 billion, has come from Focus 100 accounts. Which means that our mining strategy, cross-selling and upselling and all these things are working well. We'll continue to rationalize the long tail as we go along. What was your second question, Apurva? 6-10, DC. Yeah, see 6-10, you know, we can say 6-10, we can say 2-10, but I would say that let's look at overall 2-10. If you look at the. Or look at 2-20. Take the top 20 accounts, excluding the top account. That grew for the full year 40.5% vis-à-vis the Mindtree's overall growth of 31%. So which again means that if the 2-10 accounts, 2-20 have grown 40%, then that's again the account mining is working. The 2-10 grew around 34%, so which is again higher than 31%. If I just look at the top account and leave aside the top account, our endeavor is to make sure that the top account, the next set of accounts grow faster than the top account and grows faster than the overall company average, which is what is working out fairly well. Again, the client concentration also has come down. I think the top account now is 25%, which was around 28%, 29% a year back. All right. Thanks for that, and all the best. Thank you. Thank you. I would now like to hand the conference back to Mr. Vinay Kalingara. On behalf of the management, thank you all for joining this call and for your continued support. You may now disconnect your lines. Thank you. Thank you. See, I'll give you a call. Thank you. On behalf of Mindtree Limited, that concludes this conference. Thank you for joining us, and you may now exit the call.