Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| So a lot of our work is now being streamlined, at least in early parts of our work with Generative AI in this space are very positive and encouraging in terms of productivity gains |
| As the market starts to turn around on the back of our transformation and efficiency plays, we expect to start seeing improvements in the coming quarters |
| So Q2 was yet another quarter of strong deal bookings for us |
| Frankly, we're very excited by the opportunity Gen AI presents |
| This will deliver better customer experience, analytics and drive significant operational efficiency |
| We're continuing to strengthen our foundation, streamline our operations and moving towards a more modern dynamic culture, we have the right strategy and vision to keep us competitive and resilient |
| This solution is driving 30% to 40% reduction in operation costs, significant improvements in agent productivity and improving Net Promoter Scores |
| I am pleased with the progress we have made so far and a lot more lies ahead |
| All of that gives us confidence that we're winning in the market against a backdrop of economic weakness |
| We've grown all in, okay? And we have really got a good share of the growth |
| We reported yet another quarter of healthy deal bookings |
| This is 110% basis points higher than our operating margin in the first half of FY23 |
| One of the areas with the biggest productivity gain is in quality engineering and quality assurance testing |
| This revenue growth was led by a strong performance in our healthcare business as well as in the technology products and platform business |
| We have a strong pipeline and we are winning a nice share of those deals |
| Having said that, we are seeing strong traction on the other bookings side, which in total contract value terms increased 10% in Q2 year-on-year |
| Given our strong bookings in this market, we are confident of a swift rebound |
| But the performance, the win rate is actually improving and strong in the US like it is in Europe or actually in Asia Pac, Ravi |
| It doesn't mean it's a bad score I think we've done very well in the US as well |
| This focus on improving the quality of revenue is now reflecting in our margin performance, which has improved 330 basis points over the last five quarters |
| We've done very well on being -- remaining resilient in the first half |
| I think you're certainly reflecting on the fact that indeed, bookings in TCV have been very solid over the last quarters |
| Both on the delivery assurance and efficiency side, these actions are having an immediate positive impact while also setting us up for long-term margin resilience, because profitable and sustainable growth is our top priority |
| In the HR functions, our teams are seeing significant productivity gains by using Gen AI for candidate background verification |
| Our partnership strategy continues to stay strong |
| And I'm proud that we are seeing these benefits within three months of moving to the new four global business line operating model |
| Now, if you look at the bigger picture in this, you will see that our ongoing transformation is driving a substantial improvement in our market position |
| This directly reflects our performance with clients, delivery, program governance and our capabilities, and this is further strengthening our delivery-led sales |
| As a strategic technology partner who will build AI and automation solutions to drive speed to market, better client experience and reduce their costs |
| Cash flow has been strong for the first half at 137% of net income |
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| Finally, in our APMEA business, revenues for the quarter declined 0.5% quarter-over-quarter |
| Sandeep Shah If I just look at the third quarter guidance and look at the first nine months of this financial year, it's likely to be a 4% decline on a Y-o-Y basis in a constant currency terms, which will be ine of the lowest in the industry, and this could be a second period in a row where our growth on an organic basis would be actually lower than the industry |
| In Q2, revenues declined 2% quarter-on-quarter in constant currency terms |
| And since then, the revenue for the IT services has come down by about $90 million |
| To start with on the revenues, our IT Services revenue for Q2 declined 2% quarter-on-quarter in constant currency terms, which is at the lower end of the guided range for the quarter |
| Revenues in Americas 2 declined 2.3% quarter-on-quarter in Q3 |
| All of this has impacted our top line growth as well |
| Europe which has been our growth engine for the last two quarters -- for our last two years, growing by 39% in FY22 and 12% in FY23 has also seen slowing demand and reprioritization of client spend, waiting on the overall business, revenues in this market declined 5% quarter-on-quarter |
| The business environment, as you all know, has been uncertain |
| This translates to a sequential guidance of negative 3.5% to negative 1.5% in constant currency terms |
| Our Americas 2 market units which has higher exposure to consulting clients and to the BFSI sector, so a higher than usual impact of the macroeconomic slowdown |
| I think certainly, financial services sector has been slower -- significantly slower this year |
| Sandeep Shah And a question to CFO, Aparna, just in terms of margins, in fact, wage hikes are effective from 1st of December and Q3 looks like from the guidance is likely to be a soft quarter |
| No, I mean we haven't lost any account or it's not like we've had a drama, but certainly, some significant slowdown, noticed in some of our large accounts in financial services and manufacturing in Europe |
| So in that scenario still flattish or a narrow band movement on the margin is still feasible, or there could be some seasonal impact on the margin because of the slower growth and the wage hike effective in December? Aparna Iyer Yes, you've already highlighted the headwinds that we are starting quarter three with, there will be pressure on margins |
| But I agree with you that there are more headwinds as we start the quarter |
| The efficiency measures have only intensified |
| And the fact that all of this is creating a certain level of instability and anxiety |
| A lot of people are starting to project themselves and say, okay, it's going to be time to resume some of those programs because the business will obviously suffer from less attention to technology |
| It is a surprising decline for Europe, I can imagine for you, given the way we held pretty strongly the previous quarter |
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