LTM Limited (LTM) Earnings Call Transcript & Summary

Good evening, everyone. And a warm welcome to all of you to the first ever Investor Day of LTIMindtree. My name is Kavea R. Chavali and I'm mighty delighted to be a host for this spectacular evening. We, in fact, are really glad to have the best of the industry joining us live as well as virtually. After all, technology is an integral part of our life and our livelihood. So staying with tech, we're actually excited about all the conversations that will be part of this evening, where tech and transformation will be the two main anchors that will drive today's agenda. So taking the agenda forward. Once again, a hearty welcome to all of you, and thank you so much for joining us and for being part of this evening. Thank you once again. Now as we get started, here is presenting the action that the world witnessed as we launched the new brand, LTIMindtree. The energy and the cheer is absolutely infectious so let's be part of the launch globally. Let's take a look at the video, please. [Presentation]

Well, that seemed like a fantastic glimpse. Can we have a round of applause as well because all of that was celebrated locally, globally, vocally or for that matter iconically in one boundaryless world. Now one, LTIMindtree is not just about stance, but it's actually about substance that makes us what we are in terms of action or for that matter of words. And LTIMindtree's theme is all about Getting to the future, faster through differentiation or that matter experiences and outcomes that we offer to our clients as well as our partners. Now this evening, we in fact have a distinguished panel of speakers who are ready to walk us through how we can make our clients future-ready with speed and agility and they're about to share their insights, experiences as well as plans on LTIMindtree's vision and broader purpose. So for that reason, ladies and gentlemen, to take the story ahead we have with us our CEO and Managing Director, Mr. Debashis Chatterjee or DC as he's fondly known as. So as I invite him on stage, can we have a warm round of applause, please help me welcome Mr. Debashis Chatterjee on the stage.

Thank you, Kavea. Am I audible? So good evening, good morning, good afternoon to all of you from wherever you are joining. Indeed, happy to be here with you for the first Investor Day of LTIMindtree. So when we talk about the future, we have been anywhere living in a so-called VUCA world, volatile, uncertain, complex, ambiguous world. But what we have been seeing over the last few months is we are actually living in a paradoxical time. And let me just explain a little bit before I jump on to the -- what we are trying to do in this situation. So on one hand, we have the failing -- the falling GDP and also the increasing interest rates. But contrary to the normal scenarios, we tend to be having low unemployment and the inflation doesn't seem to be going away. Likewise, if you look at most of the companies, they're talking about globalization in a big way, they want to really sell their products across the globe. But at the same time, they're also talking about sovereignty. So again, a little bit of a paradoxical. We have a growing population. But at the same time, as all of you know, there is a shrinking workforce that is kind of hampering the growth. We talk about productivity. We always thought that unless you come to office, we cannot measure productivity. But the pandemic showed us that there is a flexible working. We adapted to that, and believe it or not, we actually saw more productivity in a flexible working environment. So keeping all these things in mind, we, as LTIMindtree, what we want to do is to provide you some clarity. And the way we will provide clarity is by simplifying and unifying our thought process. So let's just jump -- shift gears and talk about what we are going to do in terms of providing clarity. And when I say provide clarity, it's to all our stakeholders, whether it's clients, partners, analysts, investors, employees, everybody included. So as far as -- when I'm talking about providing clarity, I think the first thing that we need to understand is 2 organizations have come together. We have unified. I think the talk about mergers and integration and all these things are actually over. We don't want to talk about it anymore. We need to now think -- think forward, think of the future, we've got to think forward. And it's all about LTIM One. And when I say LTIM One, it's one culture. The one culture is for our employees. Our employees should be believing in one culture. And same way we should have one go-to-market strategy. So when you talk about our sales teams, our clients, they should be feeling one go-to-market strategy of LTIMindtree. Unified capability. If you look at our employees, our partners, they should be talking to LTIMindtree across the world anywhere across all development centers. They should be having a very unique, seamless experience, which should be absolutely unified. And last but not the least, for our investors, for our stakeholders, it's very important to continue the journey of profitable growth. So if I keep all these things in mind, this is like how we want to provide clarity and I want to now jump into the culture part. I will request my colleagues to get into details of each of those line items. But talking about culture, when this whole merger was announced, one of the concerns that was raised, and I kind of heard it from many of the stakeholders is these 2 companies have 2 different cultures, how will you merge it together? And I must say that this kind of a merger is not easy. 2 listed entities coming together of similar size. I think the team has done a commendable job. And what we have done is we have also ensured, we decided to go with the strategy of divide and conquer. We did not try to get every leader into everything. So some of my colleagues will talk about some of the other aspects, and you will make out that they're involved in each part of the integration. But the culture is one thing which was very close to my heart. And I ensured that I can be right in the middle in terms of understanding the culture of the 2 organizations because if you don't bring the cultures together, then you cannot really say that the integration is complete in all respects. So interestingly, when I looked at the 2 organizations, the 2 erstwhile organizations. The interesting part was both the organizations are very, very client-centric. And I think that's not anything surprising to all of you, you have all dealt with both the organizations. And LTIMindtree will continue to be a very client-centric organization. And if you look at the mindset, we have our engineering DNA and combined with an experienced DNA. And that's why the purpose was very easily defined as it's an eagerness to solve and to unleash possibilities. And that's the purpose, and that's the purpose that was agreed upon with the rest -- entire organization. The other thing which we also did was when we were going through all this process, we pooled our employees across the organizations. And we also tried to validate in the -- in terms of the thinking that we are kind of aligning to. As far as the vision is concerned, we are living in a hyperconnected, hyper-personalized, hyperautomated world, and we have to enable businesses in this particular environment. The most important thing about culture is as we lay down the purpose and the vision, what is it going to be the -- what is going to be the core value or as we say, work ethos within the organization? And any organization -- and which is true for LTIMindtree is you have to have a purpose. We just talked about the purpose. And if you don't have a purpose, then you cannot drive the organization. So it has to be a purpose-driven organization. The other thing which we also realized, again, when I'm talking about all those things, we kind of pooled the emotions of people and we came out with what we think is common. Both the organizations are always believed in terms of caring. We want to act with compassion. We want to take care of our employees, carriers. We want to ensure that they find a good home in terms of LTIMindtree once they join. And that's something which was unique in both the organizations, so that was also very easy for us. The next part is something that we realize that both organizations have been very focused in terms of skilling, in terms of imparting training and which means that we also -- we always want our employees to be future ready. What I mean by future ready is technology is moving very fast. And as technology moves fast, we, as LTIMindtree, we need to adapt to those technologies, and that can be only happening if you are future-ready. And future-ready is not just with respect to our employees, future-ready is also with respect to the solutions that we are delivering to our clients. Future-Ready is every aspect of the business, whether it's HR practices, people practices, everything. So that's the third element. And our belief is that if you are a purpose-driven organization, if you act with compassion, where you're taking care of your employees, you are going to ensure that your employees and your organization is future-ready, then you are bound to deliver results and that's what we talk about deliver impact. So these are the 4 values. And interestingly, both these -- both the erstwhile organizations pretty much aligned to these core values. So it's important for you to understand -- and you will see that all the presentations that you will see today, the effort is to simplify things. So when you go back from this room, you should be able to think of 4 things over here, purpose, learning, caring and results. So moving on. One GTM model, it's very important that we have one go-to-market model. We had a bit of deliberation debates, et cetera, but now we have gone through all those things. It's a one single market model right now. And Sudhir, my colleague will present the One GTM model in details. But basically, one of the things that we insure in the whole process and one the things which we also knew that there was hardly any client overlap. So when we brought these 2 organizations together, because there was no client overlap, we also wanted to ensure that the client interfaces don't change, which means the clients who are used to working with a certain set of individuals as client partners and account managers, we don't want to see any change in that intersection. And that's worked out very well. But having said that, we have to integrate the large deals teams, the presales team, the solutioning team, et cetera, et cetera. And we also ensured that we have a service line sales team and the service line sales team can actually provide more ammunitions to the client intersection, which is the client partner and the account manager. So this is again something that we have done, a lot of work happened in the last 6 to 8 months to ensure that these teams are well aligned and one GTM model can come into play. Moving on, we can talk about go-to-market, but if you are not able to deliver, it doesn't help. And we have to align our delivery and we have to align our capabilities to what the clients are looking for. So the first point is, as we are talking about a new org design, we are looking at how do we align to the momentum, which means if a client is looking at a certain aspect in terms of their business, certain transformation, certain technology, how do you align to that? It's very important that if you don't align to that, then you cannot remain as agile and you cannot really grow your business. And as we are doing that, we also ensured that the service line capabilities of 2 organizations coming together, which means that we can also amplify the strengths of the 2 capabilities. So that's another thing that we have done very, very effectively. And as we did this, we are going to collectively ensure that for any client, we can now look at end-to-end capabilities, transformation capabilities where we can participate and we can help the clients to transform through that journey. And as you know, the pandemic was probably the starting point where many of the clients that we are working with, they all started talking about reimagining their business models. They are talking about how can you look at your business model differently? Because beyond the pandemic, we are not ruling out that another disruption cannot happen. So everybody has been doing that. And which means that you need to have the capability of covering end-to-end, which is core to experience to edge. And how do you make that happen. So that is something that we talk about our overall unified capability and Nachiket will cover that in details as we go on, Nachiket and Siddharth will cover that. One profitable growth model. I think those who have -- all of you have experience with LTIMindtree and even with LTI and Mindtree separately, that we have been very, very customer-centric, and we have been very growth-oriented. So going forward also, it is important that we have a sustainable value creation model. And what we are talking about right now is, can we have consistent profitable growth? And if we can convert that consistent profitable growth into the industry-leading quadrant, then we have definitely got a good story line. So consistent profitable growth will be the mantra as we go along, and that's something which Vinit will cover in details. My CFO will cover in detail in terms of some of the elements that we -- you see on the slides. But as we are talking about these paradoxical times in the industry, in the economy, et cetera, as I had elaborated, we need to also understand what our clients are going through. Clients are also going through a situation where it's kind of conflicting for them. Just for example, a client who was very focused on transformation one year back, the same client is now focused on how can you conserve cash. Same client who used to be focusing on efficiencies is also focused on resilience at this point of time. So it's again, contradictory, but that's the reality. You're talking about flexibility, but at the same time, you want the security. Clients are expecting that as a provider, LTIMindtree should be able to give them all the capabilities that a Tier 1 can provide. But at the same time, we should not lose our agility of a smaller player compared to the Tier 1s. So in this scenario, it's very important that we, as an organization, we as LTIMindtree, we continue to help our clients to get to the future, as I talked about reimagining the business models, reinventing the wins in terms of what they want to do in the future as the business models are changing. So we need to work with them and help them their -- help their business to get to the future. Now faster is very important because this is where the time to market comes into play. All clients will try to go in a certain direction, but whoever goes faster will have an edge. So that's why you have to take your clients to the future, and you have to do it faster. And I think the new ecosystem, which we talk about right now, you cannot do anything in the future and which has not -- which is true also in the past in the last 3, 4 years, you cannot think of doing something for a client unless you have a good partnership ecosystem and unless you do it together along with the partners. So when we say take your clients' businesses to the future, which you understand now, we want to take the future businesses to the future faster because time to market is important. And we need to do it together and together is not about just clients and ourselves. It's also the entire partner ecosystem which exists, and we have to use the partner ecosystem to take our clients' businesses to the future and do it faster. With that, thank you again for being here. And I hope you have a valuable session in the next 2 hours. And with that, let me hand it over to the next speaker. Sudhir.

Thank you very much, DC. In fact, your vision and direction for the company, truly ensures that we are able to collectively reach our goals. That being said, we also have a very important video that we'd like to share across with all of you. So let's take a look at the video, please. [Presentation]

Well we got to hear from some of the key people, the analysts as well. And with that, ladies and gentlemen, we're about to march ahead towards our next segment of the evening. Navigating fluid futures with agility or for that matter, creativity and direction involves realizing a studied vision of tomorrow's needs or for that matter, ideas and breakthroughs today. So this is where LTIMindtree aims to make a difference, turning every shift in how we live or for that matter how we work, how we engage with each other or for that matter, with the consumers, providers and influencers into opportunities for businesses as well as the community. So to shed light on how LTIMindtree achieves that, we'll be inviting on stage our President of Global Markets, Mr. Sudhir Chaturvedi. I know that we all enjoyed a dose of chai and coffee outside. So let's bring that energy back in the air. Can we have an energetic round of applause. Please help me welcome, Mr. Sudhir Chaturvedi.

Good evening everyone. So thank you, DC, for setting that up for us. I think when we -- DC talked about we're living in -- we are all living in paradoxical times, but the interesting thing about whether it's the human condition or enterprises that we work for, we actually all -- frankly, we live in the future because we always dream of a brighter future, right? That's what drives everyone. And when you're talking about a brighter future, it really is about how you envision that future, right? If you can dream it, then you can achieve it. And the future that all our clients are looking at is a future which involves these 4 transformation aspects, right? They're looking to fundamentally change their business models. I think one of the big things that we've seen, especially accelerated over the last 3 years, is the business model transformation that all our clients are going through, irrespective of the industry sector they belong to. Experience transformation, this is a never-ending journey. My most favorite definition, I guess, of experience is what Maya Angelou once said. She said, people may forget what you did for them, but they will never forget how they felt when you were doing that work for them. And that's what the experience and how you feel about things never ever ends. So experience transformation is something that we will always see happening. Operations transformation, we are seeing a sea change in how companies are looking at operations, and we'll give you some examples as we go through this. And of course, the technology ecosystem is again changing at a pace that we probably have never seen in the past, and we'll continue to accelerate. This change will only accelerate in the future. So these are the 4 transformation journeys that we are working with on our clients. And this is -- these journeys are going to determine the future that our clients have. Now the interesting thing about these journeys is that every -- speed is not just a key determinant of success today, it's actually a key determinant of survival today. It is not just the survival of the fittest. In most cases, it is the survival of the fastest. And it is very important that our clients have acted with speed, the pandemic showed the speed at which our clients acted with. And frankly, that speed has become part of what they're doing. Irrespective, as I said, right, you can -- in the grand scheme of things when you're transforming in an enterprise, a few months of disruption or certain economic trends actually doesn't change their North Star, but they're still trying to achieve what they are, and they're trying to going to do that at speed. And nobody is going to achieve this without actually working with an ecosystem. No person is an island and this is -- no company is either, right? So all companies will need to work with an ecosystem of partners. We are the same. We will work with an ecosystem of partners in order to deliver these transformations to them. Now the difference that we will bring to our clients as a partner is we, today, have the resources and scale and the confidence of a leader of a top-tier player. We have the vision and the perspective of an end-to-end provider because of -- and you'll hear more of this from Nachiket and Siddharth in the subsequent session as to how we pooled all our capabilities and provide that. But I think what's very important is the energy and ambition that we bring to the table. I think we've been growth leaders in the past as individual companies because we bought an energy and ambition that, frankly, was amongst -- easily amongst the best in the industry, and that's something that we'll continue to have. And the attention and responsiveness of a caring partner, it's very important for people to show up and to care for our clients. If you look at, in fact, -- if I just look at February, Nachiket and I were exchanging notes, I think I spent 5 days at home and Nachiket spent even fewer or -- and that's because it's important to turn up in front of clients and spend time with them to understand exactly how they're dealing with these various scenarios that we are seeing today in the world and how they are planning to react to that and how we can be helpful to them in that journey. So it's really important that we do that. So folks, that is essentially what future faster together is and future faster -- taking businesses to the future faster, together. This is what LTIMindtree is all about. Now let me give you some examples as to what we are doing. This is a building products company. This is almost as -- in their own words, as boring or as commodity as it gets. This is a company as one of the world's biggest companies that supplies wood for making homes. That's their primary business. They provide -- they supply some other building products as well, but that's their primary business. Now this business is actually subject to the vagaries of the economic environment at all times, right? It depends on -- interest rates go up, mortgages get more expensive, house building drops, this company is in trouble. Any change in the business environment, certainly, in a low interest rate environment, high-price environment, massive manufacturing, you hit supply chain issues. So they are very intrinsically sort of subject to what they are. But what we are doing with them is we're actually making them an elastic enterprise. So what we're doing, we're helping them combine all the functions across their entire enterprise and across -- leveraging, obviously, cloud and workplace and some of this is the -- but this is an IT and OT systems journey for them. And the journey is to help them actually be able to -- at the start, to be able to manage their supply chain in a way that is completely dynamic in terms of responsiveness to the environment, but also to be actually a solutions provider rather than a provider of just wood to clients because this is what they're integrated. So what they will become is instead of just selling wood products, they will become a wood products plus, in fact -- so one of the things we're working with them in OT is actually helping people -- helping contractors design these single-family homes in a much more effective manner. So they're actually becoming a software vendor as well at the same time. And they're providing services as well because some of these products require very extensive, specialized services, so they are providing that. So certainly, instead of having a business model with 1 revenue stream, now they have a business model with 3 revenue streams. And that's what we're helping them do together. This is an example that's there on our -- I think it's quite an easy example to understand. It's an omnichannel digital electronics retailer. We're helping them -- bringing all their channels together in a way that actually drives engagement, right? It drives engagement. So 8.5 million customers per week and 35% increase in online conversion. And this is -- frankly, their biggest competitor is Amazon. And if you can achieve these results against Amazon, then you must be providing a better experience to your customers than potentially Amazon is. And it is actually a multifaceted experience. Again, in this case, it's [ an ] experience which spans both their products that they sell online as well as the services they provide with it, as well as the advice they provide with along with all of that, so that you are best able to use the assets that you're purchasing from this retailer. The third example I have is from an operation -- sorry, the -- this is a life and energy player in the market. And the interesting thing about them is, this is an operations transformation initiative because in life and annuity, as you can see, this is a fairly resilient business. People buy life insurance fairly regularly depending on various life events, et cetera. This is a business that is actually withstands most -- economic cycles do not really have an effect on life. It does have an effect on the annuities part of the house, high interest rates better, low interest rates, not so good. But this business is actually a very old business. And what they're looking to do is they're looking to compete across the spectrum through technology-led operations transformation. And a key part of that is obviously the spend reduction that they're getting of over $100 million. But it's about the -- where you put the tech ahead of operations, right? Traditionally, most financial services players have very strong middle offices and back offices, and a lot of the work that is done is done through the process side of the house. So if you can move the operations to a technology-enabled, this is where a whole combination of automation and AI and others come into play, that's what leads to true operations transformation. And my last example to you is that, this is a client which is in the travel technology space, and we are doing a complete tech transformation for them. So this is across their entire tech landscape, across their customer experience landscape, across their ERP landscape, their data landscape. Their cloud landscape, they have a complete modernization journey as they go through. So these 4 examples that I gave you, I think what's interesting about these is, I think none of these 4 would actually be engagements that either LTI or Mindtree would have been able to do on their own. These are all engagements that we have won because we are LTIMindtree. So that is the nature of the things that we can do together and that's the faster future together that we can deliver to our clients. So the growth -- folks you can switch on this notes page because you're not in sync with me, so. Right. Sorry, that threw me a bit. But anyway, so let me get to what I think most of you are interested in saying, as to we -- okay, we are living in paradoxical times. So how are you going to find growth in these paradoxical times? And frankly, when we look at the market, right, we also look at the market, especially a market where -- in a growth market, right, in an upmarket, everybody grows, right? Essentially, there's enough demand for everyone to grow irrespective of -- I mean, some will grow faster than others, but there's growth for everyone. But in a market that we see today, we have to look for what is unique to us, what is for us that is not available to others. And these are the areas that we have, which we are, and I'll expand on these in subsequent slides. Internally, we refer to these areas as pots of gold. And you're probably wondering why these are unique. If you read them, they don't sound very unique. But let me explain to you as to why these are all unique. So the first and foremost thing is that we have a resilient blue-chip account portfolio. So these are the verticals that you can see here, $1 billion-plus verticals, banking, financial services and insurance, high tech, media and services. The two $500 million verticals for us plus manufacturing, energy and utilities, retail, consumer goods and life sciences. And these are niche -- travel, transportation, hospitality has a lot of niche technology. These are $250 million plus verticals and we have a strong public sector business as well. In addition to this, we have 1 in 5, approximately 1 in 5 of Fortune 500 companies is our client. So what this gives us is one of the strongest client bases in the industry in terms of the focus that we are. And we're looking to stick to this focus, we're not looking to expand this focus beyond what we already have today. So we're going to stick to these vertical units, work on these clients. And the interesting thing is if you look at the #1 company in each of these industry sectors, if you can name the #1 company in each industry sector, each one of those is a client of ours. Just to give you an idea, I get a lot of questions on banking, and I'm assuming that I will still get them even today. We work with 12 of the 20 G-SIBs in the world, of the top 20 G-SIBs in the world. We're working with 12 of the top 20 and frankly, if too big to fail is going to become even too bigger to fail, then we are actually in the right place, right? And we are working with these G-SIBs right from -- if you look at a flat map, right, right from Australia, right till Edmonton-Calgary, we have clients, which are banking clients across the board in each of these sectors. So that's the nature of the client portfolio that we have today. In addition to this, if you look at the revenue that we are delivering to this resilient client portfolio that I talked about, 55% of this revenue is coming from 4 service lines. And frankly, there is no cut in spend in these 4 service lines. The CIO who goes to a Board and says that I'm going to save money by cutting costs on how we deliver customer experience, I think will have a very short-lived career, right? It's not going to happen. Customer experience is a never-ending journey, as I spoke about earlier. Data is the lifeblood of every enterprise now. In fact, in uncertain times or in paradoxical times, clients look for more data in order to make better decisions, and that's always going to be key. The cloud journey, some people talk to us about hyperscaler growth slowing down. But frankly, it's slowing down to 15%, 20% on the base they have. And if you think about what they have sold in the last 3 years, there is a huge amount of backlog that already exists in the hyperscalers' ecosystem that they need to actually -- that needs to be consumed. And in addition to this, there are several industry sectors, frankly, that are at the start of their cloud journeys and financial services being the foremost, which actually are at the start of their public cloud journeys. And cyber, again, if you look at cyber spend, I think this is an area where there is -- in fact, in many cases, when I look at our manufacturing clients, for example, their tech spend is usually about 2% on -- of revenue is on IT. But when you look at the cyber spend across OT and IT, it's almost approaching 0.75% to 1% of spend. So this is becoming a massive area of spend across the board. And again, this is -- there are no limits in terms of how clients are addressing the cyber challenge they face. Frankly, in uncertain economic times, in times of war, et cetera, what we find is cyber attacks only increase as state actors start to do the things that they do. So what we're finding is that these are 4 areas, which are 55% of our revenues today which are remarkably resilient. Now you put the 2 together, that client portfolio and this revenue, and that's why you see that this is fairly unique to us. Now in addition to this, if you look at the pyramid, right, the account pyramid that we have, and I'm going to cover this slide in 2 parts, so the first is if you just look at the pyramid and see how the pyramid has progressed in one financial year, right, so this is Q3 FY '22 to Q3 FY '23. As you can see, we've made strides across the board, right? Each and every category we've added clients in the last one year. And that's a track record of continuing to add accounts in every layer of the pyramid, is actually a track record of what top-tier players typically have. And if you see the spread of clients we have, right, we have $100 million-plus clients, we have $50 million -- we have clients in every category, right? There is no gap in terms of -- you certainly have one large client and then everything falls and then you have a much lower client base. So we -- as I keep saying, right, if it looks like a duck and quacks like a duck, then it must be. So we look like a Tier 1 and we act like a Top Tier, we must be one. And I think this is what this pyramid really tells you. But what it does -- what it also tells us is that there is still significant growth potential within because this pyramid was achieved, frankly, in our individual avatars, as we existed as LTI and Mindtree. This is not an LTIMindtree pyramid. So imagine what an LTIMindtree pyramid could be. And for that, you should look at the right of the slide to -- and see what are the service lines. So there are 9 service lines that are there. Now our current cross-sell ratio to these 374 accounts that we have, which are above $1 million is 3%, just over 3% and we have 9%. So imagine the potential that we have just in cross-sell to our existing client base, to the existing clients that we have together as an entity. If we were just to increase this from 3 to 5 we'll be seeing very, very significant growth without having to look for new clients or new growth opportunity. We already have access to them. We already -- all we need to do is make sure that we have the right GTM models in place in order to make sure that we drive this cross-sell program that we have -- the cross-sell opportunity that we have. I think this is probably the only slide that most people come to my presentation for, so I'll just cover this quickly. So our current large deals portfolio has 68 large deals, just above $3.2 billion. There is a redefinition that we have done. This is about $20 million. In case you want -- some of you will remember that in the past, we used to talk about $15 million plus deals. So if you want the $15 million number, that number is $3.72 billion, so $3.7 billion just for comparison. But in future, we'll talk about deals above $20 million, and that's at $3.18 billion. The other interesting part of this is that you have always seen that we've got a good track record in large deals and new logos, where we are essentially displacing. In fact, 2 of the examples that I gave you, 2 of the 4 examples -- in fact, sorry, 3 of the 4 examples that I gave you were actually new logos for us as we got together as LTIMindtree. And that portfolio on -- at a base of $20 million, if that -- the definition is $960 million of deals are with new logos, which also showing the -- you've heard ISG, you heard Gartner, I mean you heard HfS, you heard all of these people. And these -- you've seen the excitement that the advisor and analyst community has with us and that's reflecting in some of the pipeline that we're beginning to see, the growth in the pipeline that we see -- that we are seeing in large deals. Partnerships. Actually, I'm going to leave partnerships to the end of my presentation and let some -- perhaps somebody else speak on my behalf. But this is something that we've done extremely well. We have 4 categories of partners: hyperscalers, enterprise apps, partners, digital and data partners and vertical-specific partners. And in each of these partners, you'd probably argue with me saying, so everyone has these partnerships, everyone has top-tier partnerships, right? Absolutely, they do. But what everyone doesn't have is a track record of awards. Consistently, whether it's AWS, whether it's Snowflake, whether it's ServiceNow, we consistently win awards which are far beyond what a simple partnership ecosystem would lead us to win. And the reason we are winning these awards is because we're doing something different with these partners. We're doing some things with them that nobody else is doing. And primarily of that is how we are leveraging our own platforms and putting our platforms on our products, how we're working together with them. And frankly, some of the things I talked about earlier, right, the energy that we bring to them, the ambition that we bring to them, the attention that we bring to them. And just to give you a sense, right, here, if we just look at these clients, Microsoft, the relationship is led by DC himself. If you look at AWS, Siddharth leads this relationship. If we look at Snowflake, I personally get involved in anything to do with Snowflake, including going to Vegas for 1.5 days just to pick up an award and do a meeting. And Nachiket is our ServiceNow sponsor. So all sponsorships of all of these are actually with people in the line. It is not left to an alliance organization. For us this is a key part. For me, my partners are actually my sales engine. And that's how we've always worked with them and work together with them in order to make sure that when we jointly go to the market together, we bring something to the market that they don't bring with any other partner. And that's the key part from a partnership-led strategy. So in order to make sure that all of these pots of gold, right, these levers that we have of growth that are unique to us, how do we make sure that these actually get realized in practice, right? And to make sure that over the next few years, we actually deliver to this uniqueness. And we've got 4 programs that we have. In fact, frankly, most of you would remember Minecraft, and we are not reinventing the wheel. Minecraft is an extremely successful program for us. We're going to continue this. We're going to continue this for our Focus 100 accounts. These include the Fortune 500 accounts also that are part of these Focus 100 accounts. And these 100 accounts are around 75% of our revenue. So it's also a strategy to make sure that we show -- completely shore up a large part of our revenue base as part of what we're doing and maximize return from them. As far I've already talked to you about, 374 accounts above a $1 million, increase service line cross sales ratio from 3 to 5. Simple metric. We're going to manage and monitor it across the board. And frankly, there's enough headroom. We can go to 7, 9 and that's, I think, the future growth journey that Aspire will do. Everest is -- we've been always good at doing proactive large deals. Large deals, you can't wake up -- the way to develop a large deal's muscle, and our differentiated large deal's muscle is to do these deals proactively, is to pitch proactively, whether the deal happens or not, the ability to do -- we provide a proactive pitch actually strengthens your large deal's muscles even when it comes to a reactive advisor-led pitch, et cetera, because you're bringing something -- we are bringing something which is different to the table. And Neo, we'll never let go our focus on new logos or new tech and new micro verticals within our existing verticals because frankly, innovation is there everywhere, and we want to make sure that we are ahead of the curve when it comes to innovation. I'll just take an example of Snowflake. I still remember very clearly, there was a meeting with -- at that time where our data leader spoke to Nachiket and me about Snowflake. And barely anyone in the room had even heard us Snowflake, right? It was just like, oh it seems like a data on cloud company. They've got like a vision. And this -- none of the current Snowflake leadership was there. There was -- this is Snowflake still run by their founders at that point in time. And we picked that up. And just to long story short. We currently have 65 clients, Snowflake clients as LTIMindtree. And it's one of the strongest partnerships that we have in the ecosystem. We just won their global delivery platform partner of the year. And this comes because you have that vision -- that view that we continuously look to see what emerging new tech is out there and how we can leverage it. And you'll see a glimpse of that, I think, in the next presentation as well. So folks, this is what we have. These are the 4 programs that we'll deliver. And in order to make sure that we deliver these 4 programs, as DC said, we are one. We are one markets organization. Clearly, there's no change in client interface because there was no overlap, people that they were dealing with, they continue to deal with. We have an integrated team. So now that's an integrated presales and large deals team is how you bring the power of the entire organization to every sales event that we have. And we've seamlessly aligned the organization. So if you look as to how we are aligned from a GTM perspective, the delivery organization is aligned the same way and the service line organization is aligned the same way. And what we've done is because a lot of the cross-sell/upsell will come from service line leverage, we've actually strengthened our service line sales capability. That's going to be our biggest investment that we make from a GTM perspective, that our service line sales capability across all those 9 service lines that you saw is strong enough to make sure that our cross-sell/upsell promise is kept. So folks, that's what I have for today. But thank you very much for your time. Thanks. And with this, I'm just going to queue up -- I think you heard me speak quite passionately about partnerships from my perspective. Let's see what our partners also think about us, okay? Queue the video. [Presentation]

All right. The first up, I'd like to thank Sudhir, in fact, for those passionate insights that you've shared with us, all about finding growth in uncertain times as well. That being said, when I take a look at the theme, wherein it says Getting to the future, faster, together, I'm reminded of the fact that there's a darwinian theory that says survival of the fittest. But then this era is the millennial theory, which is survival of the fastest as well. When we look at the way things are happening around the world, and I realize there's a lot of insights flowing in from this side of the hall. And I know there are our audience members joining us virtually as well. But for those who are present here, those who are live here with us, let's get some energy. So this is what we're going to do. I'm going to say one, then I want all of you to come together and clap just once. As simple as that. It's a bright, buoyant Tuesday evening. So let's bring that energy back in there. I'm going to say, one, I want all of you to come together and clap once. Simple. Let's give us a try. One, beautiful. Let's do it together, together. One, One. One, one, one. Two. Okay. This is good news. I see the smiles widened. I also see that we have everyone's attention. So that being said, then let's quickly move on to our next speaker session because that is sure to empower you all as an audience. And this is where the speakers will help us understand and implement value creation, the LTIMindtree way. So I'm going to invite on stage the Chief Operating Officer, Mr. Nachiket Deshpande, and he'll also be joined by Siddharth Bohra, Head of Service Line Markets. So let's continue that 1-1-1 train. Can we have a round of applause. Please help me welcome Mr. Nachiket Deshpande and Mr. Siddharth Bohra.

Thank you, Kavea. And I think she's made my job of keeping you awake a little easier. So I'll -- next 40-odd minutes, me and Siddharth, who will join me in a bit, we'll try to answer the question how. So Sudhir talked about the unique opportunities that exist for LTIMindtree and we'll try to explain you as to why we think we have a chance to win disproportionately in those opportunities, and why we feel confident and passionate about the capabilities that will differentiate us in that space. I'll start with a few examples of the client conversations that we have been having. And that kind of indicates the change in the expectation. This is about an industrial manufacturer who was in the building products, is now looking at significantly changing their business to build a multibillion-dollar intelligent buildings solutions ecosystem. And they're looking at us to work with them, partner with them to engineer and also take that platform to the market. This is a consumer beauty tech brand, which is looking at increasing their direct-to-consumer share from roughly around 10% to over 50% in the 3- to 4-year time frame. This is a global bank, which is looking at bringing consumerized experiences to its corporate customers, giving real-time transparency on trade, cash and their position data, but also build an ecosystem marketplace that brings the fintech ecosystem to life for all of these corporate customers. So while these 3 examples are from seemingly very, very different industries, what do they have in common? The key thing that they have in common is that the expectations from the client is about collapsing the silos. It's not about cloud transformation, it's not about experience transformation, it's not about data transformation but it's about all of them. And that breaking of silos is fundamental ask that the customers have. And they're looking at all of that with the predictable outcome at scale and at speed. So the idea about the transformations that Sudhir talked about, the key to all of those asks today, are -- these are all encompassing transformations and are delivered with the predictable results and at scale and at speed. So what's our response to that ask? The proposition that we believe is important is unified transformation. And that unification is across value chain, both functional and industrial. So if you look at the example of the Building Solutions, example I gave, it's not -- it's the transformation to move to an intelligent building solutions business, requires you to transform from sensors to edge to data to pricing models. The direct-to-consumer transformation requires you to transform experience, commerce, supply chain and logistics. When you look at the transformation, it's also across ecosystems. There are core system vendors. There are hyperscalers, there are data solutions, data product. It's across all of these ecosystems is what you will need to deliver unified transformation. It's across the stack. It's about end-to-end transformation that goes all the way from experiences to the intelligence layers to the core to the infrastructure. It needs to be delivered with unified methods; design-led, persona centric, agile at scale and product-centric way of delivering. And all of this to be delivered on a consistent platform approach, leveraging IP, bringing consistency and most importantly, all of this is on the unlimited platform, which is cloud native and AI enabled. So that's the unified transformation that we have talked about. And that's the way we're able to answer those questions that the customers are posing us and the opportunity that -- cross-sell/upsell opportunity that Sudhir talked about. But while this is the problem statement, while the way to solve for that is through this unified transformation across value chains, ecosystem, stack, methods and platforms, why do we think we have that unique capability that we will be able to deliver this? And let me ask Siddharth to join me to take us through as to what that differentiation is.

Thanks, Nachiket. Can you hear me well? Wonderful. Very good evening to all of you. I can't help feeling a little nostalgic. I was going back to our first Analyst Day, I don't know how many -- 6 years or some ago, we were $800 million in size and out to prove that we could be different, we could be differentiated. And obviously, there was trepidation in how we were thinking about it. But fast forward all these years, lo and behold, how many organizations in the world had turned themselves from $800 million to $4 billion, right? So I'm excited to be here. Somebody mentioned to me $10 billion. Why $10 billion, 7 years, 7x -- 5x. So maybe what we are setting up for the strategy we're talking about, what the values that DC talked about, the points that Sudhir and Nachiket talked about, is really about taking us into the future. So very happy and very excited to be talking to all of you. What I'm going to speak to you about is how are we mobilizing the organization to take us to the next. And before I do that, I thought I would just give you a unified view of what we do for our customers, right? If a customer, let's say, is there in the center, what kind of emotions do we -- we're an emotional organization, so what kind of emotions do we heed to? And if you just look at the spectrum across, be it transforming the experience of their consumers, customers, partners, employees, helping them build lifetime loyalty and relationships with their customers, helping them build products, innovative products and platforms, helping them make decisions, helping them stay productive, helping them stay secure, connected and all of that at scale, right? These are some examples, and Sudhir and Nachiket both talked about those. But I have a feeling some of them have -- you've used some of these products. We're talking about an OTT platform built ground up for 200 million users. Chances are, some of you have used that platform. We're talking about reimagining a Fortune 500 bank on the basis of data and insights, right? We're talking about on the left, there is only one such organization in the world, a premier economic agency that is called The Friend in Need, running their operations in 160 countries, 24 by 7. Now the reason I'm giving these examples to you is because this is what we can do for any customer. If this is what we can do for any customer, the opportunity of scaling that to the 700 customers that Sudhir spoke about is just immense. The opportunity of unifying these propositions in that offer, that Nachiket spoke about is just unique. So that is the backdrop in which we are solving. And as we look to build the competency or a practice sales organization and practice GTM structure, what DC, Sudhir, and Nachiket told me and my team is, "Hey, listen, we are in this unique position. No other company in the world of our size or bigger or smaller, has this unique advantage of thinking with a brand, blank slate. We were coming together and we're going to be one company. So do the right thing for the customers, do the right thing for the stakeholders, think afresh." And that's really what we did. Because you guys, you follow this industry well, you've seen many companies who've lost their way, who've lost their differentiation, who thought what was working for them in the past will continue working for them. We're not like that. We are a very uncomfortable organization. We are constantly in motion. So when Sudhir and Nachiket and DC told us that, we said, "Okay, let's put our thinking caps on and say, what do we want to be? What's the market opportunity?" And so we looked at it outside in. We looked at it inside out. We looked at voice of customer, voice of partner, voice of competition, voice of analysts, and we introspected. We said, "What are our teams saying, what is our data saying, what are our trends saying? What is our ambition saying?" And we realize very well, I want to say quickly, but soon enough that what got us here is great, but not enough. So what I'm going to talk to you about is material changes in how we go to market from a competency and a capability-led perspective, right? And without further ado, let's start with -- I'm going to talk about 4 vectors: vector #1 and -- is really the organization design and DC spoke about it early on. It looks like a simple chart, doesn't it? Very simple. But this is not how most companies in our industry operate, by the way. Where is the momentum today in our industry? The momentum, the operating system of our customers today is public cloud. And we realize that it's a massive opportunity but we can talk about these opportunities. But if we don't organize ourselves to meet that opportunity, we're not going to get the lion's share of it. So the yellow that you see out there, these are completely rebuilt organizations dedicated to these hyperscalers. When I say rebuilt, I'm saying marketing, sales, solutioning, COE, delivery. Many other companies, our peer groups say they have all these groups, by the way, where most of them are partner organizations. We have built dedicated sales organizations across each of these. And the progress that Sudhir spoke about, be it with AWS, be it with Azure, is because we made this investment. And I'll talk more about what that means from a financial and a performance perspective. So that's one principle aligned to momentum and don't scrape the bottom of traditional legacy businesses. We are in a unique position. Companies larger than us have this baggage of legacy business. They can't let go. And companies smaller than us just don't have the size. We have the size and the nimbleness and the intensity to make that happen. So just using an example to say what this organization design means. The second part was, don't forget what our strengths are. Where are our strengths? You've known us to be a data company. You've known us to be an experienced company. You've known us to be an ERP company. And we wanted to make sure we redouble our focus and our investment in those areas. So you will see these global sales organizations that we've created to make sure that we don't lose sight of our strengths. And then the third part is doing it collectively, to Nachiket's point of this unified transformation. You'll see that success team in the center, right next to the customer, that is the unifying tissue that we're creating across the go-to-market organization, so that we take a unified collective view to our customers, so that we solve their problems properly and not piecemeal, so that we elevate every proposition. So in summary, first things first, we have fundamentally revectored how we go to market to meet the opportunity that exists not just now, but in the years to come. Structural change. Let me go to the second point that Sudhir so eloquently talked about. And everybody talks about partner, as you said, right, how everybody is a big partner and this and that. There is a huge difference. And the devil lies in the detail. Let me give you some back stories. 3 years ago, we were nothing for AWS, nothing at all. We have made a simple small acquisition because we wanted to figure that space out. Fast forward to December 2022 last year, they gave us the Global Collaboration Partner of the Year Award, ahead of all the companies in the world, all the biggest, all the suite, all of them. Because they saw the intensity and they saw the impact that we were creating. Example number two, you'll see Microsoft. Microsoft -- we -- LTIMindtree, today is Microsoft's #1 national SI partner in the U.S. By the way, we were in triple digits in terms of ranking 2 years ago. Why is that happening? And I'll talk about why is that important, right? So that's just the second one. The third one, Google made us a GSI last year. So I'm not talking one anecdotal example here. I'm talking across the board. These are all hyperscalers. And I can keep giving more and more examples. The main point is this: what does this mean? We are fundamentally changing our go-to-market motion. It's not an isolated motion anymore. It's a collective sales motion because it's very clear to us the ecosystem wins. And what is that doing for us? It's supercharging our pipeline. Sudhir talked about the fact what we're doing with Snowflake. In just the last year, they must have got 30 new client opportunities to us. By the way, no sales dollar invested from us, they brought the opportunity to us. What does that mean? Our win ratios have improved because these partners are backing us and saying, "Hey, go with LTIMindtree, you're better off. You're going to get your job done." What's the third thing that's happening? Bigger deal size because not just as a service sales we're talking, licenses, we're talking about other forms of bundling. So it's supercharging our pipeline. And by the way, we're just getting started. The other part is the fact that the customer -- and the topic of this presentation is a new way of creating customer value. Why is the customer happy? Because both the tech company and us are joined at the hip at the outcomes that we want to deliver. That's beautiful. So second vector, fundamental new muscle is this collective sales motion with partners. I am not exaggerating when I say there are hardly any companies of our size or even smaller and bigger, which have the intensity with which we drive collective motion with our partners. So that's the second vector that I wanted to talk about. The third piece is coming on to competencies and capabilities. Now we started with the customer in the center. We talked about the force multiplication with the partners. Where does all this land? This lands into the capabilities that we want to build. Now we have one very simple philosophy when we think capabilities. Whatever be our size, in what we choose to play in the area we choose to play, we will be the best. No compromise. And we will not choose to play in every area, by the way. So you'll only see 6 here. There are -- if you go to many other analysts briefings and other things, you'll see 50, 30, 40, 20, no, just 6. In these 6 and there are 2 categories here: one, the $1 billion competencies. All these 3 are going to be more than $1 billion competencies in 2 to 3 years. And by the way, they're not at $900 million that they'll grow to, they're smaller, but they're sizable. And we have a very clear playbook on how that is going to happen, why they got to where they got to, and how they'll get to $1 billion and more. You've known us to be a data company and I have a demo planned, so you'll see some more of what we're doing. You've always known us to be a strong core ERP company. Well, here's a new competence that has done so well for us. We call it Modern. This is about modernizing large swaths of application landscapes for our customers, building cloud-native platforms, building products on cloud, massive business, massive growth. And we think it's a huge growth driver for us going forward. And we are so excited about, and this is, again, along with the cloud companies. On the other side, we've identified 3 growth engines. So they talked about Security already. We think we have 10x to 15x growth possible in the next 3 years just in Security. Interactive, beautiful work that we do. We plan to take it to every customer of ours because the value proposition that we have in this space is next to none. And finally, Thrive is really the next-gen ops model. I wish I had more time to talk about it. But in terms of the competency strategy, we are very clear eyed on where we're going to focus. And in these areas, we will be the best that is out there. So that's the third vector of our go-to-market strategy building. Let me come to the last one. This is where we get even more excited. And I have a demo planned. But now our customers almost consistently want to know each time they see LTIMindtree representative, they are almost expecting, "Hey, what solution, what IP have you got?" Because we've built it into our way of working. And by the way, we don't have a spray and pray strategy here, that everything we will create some solution, some PPT, some of the -- we're not a PPT company. We've picked 3 areas in which we built IP. In those 3 areas, we will cover the entire life cycle. We call this life cycle IP. So if you see that, data to decisions life cycle. We've got IP across the board if you look at cloud, from business case to business value realization. So we picked an area, 3 areas we picked and we have life cycle building IP across the life cycle. And the third element is we brand it, we market it, we position it well because we don't try and do 50 different things. And I'm very happy to report that right now, our IP-type customers, right, which are buying IP from us, not just services, is doubling every 6 months, if not more. So very excited to talk about it because customers look for nonlinearity. Customers don't just look for how many people do you have certified on a certain technology. We think this is the age of automation. We think this is the age of IP. So we are very excited to bundle a lot of things that we do along with this. So that's the fourth element of this. Now I'm going to switch on to a demo that I wanted to show you. ChatGPT has become the -- this raging topic in our world, in the world of tech that's shaking everything up. Here at LTIMindtree, we embarked on that journey 3 years ago. And what we're going to show you is a demo of a product, Lumin, which is part of the Fosfor family, which in a simple parlance is the ChatGPT equivalent for the enterprise in the space of data. What ChatGPT does for text and visuals, Lumin does for data. And by the way, we have the top pharmaceutical company, the top pharma company, the top CPG company, the top bank using it. So I think you'll enjoy it. So without further ado, I'll hand it over to my colleague, Debashis, to walk you through the demo.

Thanks, Siddharth. Hello, everyone. Good evening. Very happy to show you what we have in Lumin. As the team there mentioned, our investments are on data and AI. So we'll see for real how Lumin works for different decision makers in making their life simpler, okay? Now consider the scenario that I'm going to show you is in terms of a category manager of a large retailer, in terms of how do they make decisions in understanding how -- which products to focus on, how do they do market penetration more, how can they do market expansions more and take decisions faster. Now consider me as a category manager, I can just come in quickly and say what is the trend of -- now as you can see, as I'm typing, it is recommending me. Now just consider the amount of speed that we are bringing in and decision-making now. As Siddharth mentioned, consider this as the ChatGPT for enterprise data. I can just come in, ask questions, and you can see, boom. We have the answer in front of us, no BI reporting and others. It explains me how is the market trend performing? It shows me how exactly is the market trend in terms of charts. Now consider this that I'm constantly curious and thoughtful about what I'm trying to analyze. So let's keep on adding these to our stories. Now consider we create a story title for today, and say 14 March analysis, right? Let's keep on adding to whatever we are thinking as analysts to our storyboard, okay? Now as soon as I do that, maybe my next curiosity, as we say in Lumin, if you can think fast, you can get insights fast as well. So let's say, now in terms of looking at what is the growth contribution of APAC across, say, by categories in Feb 2023. Now as soon as I asked that question, this is a complex question. Now you want to know how exactly your growth is performing, are you growing, are you degrowing. Now you can easily see now, one, it narrates the entire thing for me and it gives me a waterfall chart right in front of me and saying, "Hey, there is -- it seems that furniture, technology and office supplies are degrowing, which is making your sales go down." Okay. Very, very quickly. Now as soon as I do that, the next thing as a curious business user to make the decision is why is sales drop in APAC in Feb 2023? Now as soon as I'm asking this question, you can understand that I want to know why. Now just consider this if I would have given to a business analyst to do this, they would have come back to me after weeks. And here, you have an answer right in front of you, that it is dropping because of your digital ad spend and mobile spend. In India as a country, you are witnessing a drop. Within India, office supplies and technologies are dropping. Within office supply, appliances are showing a drop and you can keep on going down to a brand level. Now consider this analysis in seconds in front of you rather than taking weeks. We have also integrated explainable AI in saying, this is not a black box, I'm an analyst to win for you, you can see which machine learning model got applied and every analysis in front of you. So everything, the sooner you can type, the sooner you can get insights. Now if I'm making a business decision, you need to see in saying that, "Hey, I want to run simulations because I'm trying to make decisions here, right, so I need to know if I made this as a decision, is this going to work out or not?" So as decision makers, we can quickly do simulations. I can change the values in saying, "Let's increase the promo spend a little bit and digital ad spend a little bit, is it going to change my sales in here, right? So I can quickly run simulations and say, "Hey, if I do these investments, is my sales going to change?" Of course, it shows that 22% of sales can increase by doing those changes. I still have scope because the best-in-class, I can reach to 32% more sales, right? Not only this, you can ask future questions in saying what will be my sales in APAC in next 6 months? As soon as I'm asking this, I'm asking a futuristic question. As decision-makers, I need to ask future questions. Now when I'm asking that, I run my forecasting model and give you an answer very quickly and saying, in March, we see that you might be dropping in an existing rate 5%, and you can see the entire forecasting working out here. So with a few questions, you know what is happening. You know why is it happening. You know what will be happening so that you can make your decisions faster, right? Let's do another question in saying, say, for example, we asked this question and saying, "What is the trend of sales by markets? Right? We had asked this question. Now let's add a few things to our stories. If you remember, we asked a few more things and let's add a few things to our stories, right? Say, for example, "Let's go into APAC." Now consider this particular scenario. I asked a particular question, but it preempted my thoughts and it told maybe you also want to see the comparison of APAC sales. Maybe you want to see the share of sales by markets, right? Now in one question, you are getting answers to 5 more additional questions. So again, productivity of an analyst increased by 5x, right? So I can go into a detail of it. You can see very quickly, it also recommends me. I can add some of these things to my storyboard that I had created because storyboards help you get your analysis in one place. No need of Microsoft presentations, copy-pasting it, taking into meetings, right? I can go into a storyboard. You can see all these coming in there. We had asked this question, we had added into storyboard, right? What is the trend? We had also asked this question and add it into the storyboard. What I can now do is, as Siddharth mentioned, we have now used language models before. And now with the new era of ChatGPT, I can straight away now publish it -- what we want to do with this is now create narratives, right? We want people to just get the narratives very, very quickly. This is where we work with OpenAI, and you can see the entire narrative being working with OpenAI GPT and giving you the entire narration out here rather than going and creating different, different BI reports. Now this when it is available on mobile, which we do, you can understand that you can get all this analysis on the go. So this is what we are solving in Lumin. This is a market-changing space. This is where LTIMindtree's investment on AI and the new technologies like ChatGPT and others comes into picture, and this is where it gives us an advantage against any competitors of us. Thank you.

Thanks, Debashis. This is awesome. I thought we will give you a sense of what innovation looks like. And just to kind of make it real because everybody talks IP. So when we do this stuff to our customers, they're just blown, right? There is no conversation about do you get data? Do you get all of this? And I thought it would be good to share with all of you on what's the world we are taking to our customers. With that said, thank you so much. It is always great talking to you guys. I will hand it back to Nachiket.

Thank you, Siddharth. I think just to summarize what we wanted to talk about, right? So we talked about the opportunity that exists, which is unique to LTIMindtree. You saw that our approach to go address that opportunity of the unified transformation is very unique. It's not isolated motions of cloud transformation or just the rate of transformation or just the ERP transformation, but the unified transformation. And you looked at the unique capabilities that we believe that gives us confidence that we can deliver to that promise. If you have done all of this, how would the success look like? So if we talked to you a year from now in the similar forum, how -- what success would look like, what we would have achieved, we are able to fulfill that promise. We believe that the focus areas that Siddharth talked about, those focus areas should show higher growth than company average. Our growth contribution from our existing account with the potential of cross-sell/upsell, the Aspire program that Sudhir talked about, should show a higher growth contribution from that program. A productive pyramid, the customers which are in the middle bracket for us, their contribution in our overall revenue should go up if we are able to successfully cross-sell/upsell. And the characteristics of our pipeline in terms of those unified transformation deals, size of the deals as we are unifying many capabilities and full stack, which is covering across many service lines and many capabilities that we win together, should reflect in our pipeline as well. So that's the promise. This is the plan that we have set out to do, to be able to achieve that growth potential that exists which is unique to LTIMindtree. Thank you all.

Thank you very much, Nachiket. Thank you, Siddharth. And I'm also going to thank Debashis for that very fascinating and very interesting demo. And also thank you for taking us through the strategic plan in a very simplified manner. I think we managed together some really pertinent and some very important nuggets of thoughts. It clearly shows that possibilities are limitless. That being said, we're about to move on to our next speaker. But before that, let me also inform you all that after the next session, we're actually going to open the floor for a Q&A. So for our members of the audience for joining us online, I'm going to urge you all to type your questions so that we can take them even during the Q&A round. As for those who are joining us here live in person, we'll be passing the mic, but that session will take place after I invite our next speaker. In fact, we all know that today, one of the most crucial business objectives for a company is to achieve financial success while outperforming the competitors. So I'm going to invite on stage the Chief Financial Officer, Mr. Vinit Teredesai, to take us through the next session on delivering profitable industry leading growth. So ladies and gentlemen, let's have a healthy and a wealthy round of applause. Please help me welcome on stage, Mr. Vinit Teredesai.

Good evening. Am I audible? Normally, the finance person's voice is very low in the organization, but I'm trying to be loud. So first of all, welcome all of you. This is our first investor meet that we are doing in person after the merger gets over. And I hope you have enjoyed all the presentations that have been made so far. But let's summarize what does this mean for us in financial terms. This DNA, you would see common why a finance person is talking about the DNA, but DNA is -- the speed and agility is a part and parcel of our DNA. That's the reason why it's here. We have executed this merger in a record time of 7 months. We have closed our books within 60 days after the merger gets over. And now we are ready with the day 2, which will be under the one organization, with one internal system, one common policies and one domain. DC covered our virtuous cycle of sustainable value creation. That's laid down on 4 pillars: driving growth; cost synergies, disciplined but more important is the disciplined execution behind it; capital allocation framework; and creating shareholder value -- shared value, sorry, for all stakeholders. A strong track record. Both companies put together, we have grown consistently even in tough times. A CAGR of 15.5% and I've done the math, we have done this adjustment for all our 9 months' performance also. And that's -- if you add that on an annualized basis, we still continue to maintain that, and we are confident actually we'll beat this. So $4 billion in size, 15.5% CAGR growth. That is LTIMindtree, with a strong and consistent track record. Now you'll say what's unique, right? Because everybody has grown. Let's look at how we have grown compared to the peers. We have grown beyond the industry, and it has been our industry-leading growth. The chart here shows the year-on-year growths of all our closest peers that we track. The blue is the range in which all the peers have grown and yellow is where the LTIMindtree has grown consistently better than the peer set. Most importantly, if I want to call it out, LTIMindtree is the only organization, which has delivered this growth organically compared to some of the other players, whereby they have grown inorganically. This is a position with which we are starting, continue with growth and the growth in leadership. Now coming to the opportunities, where the confidence is coming on, right? We have a strong engineering DNA, coupled with a strong experience DNA. We have -- and Sudhir mentioned 374 $1 million clients. We have cross-sell opportunities, our -- and within that, if you look at our focus 100 clients, look at the math that can work out on it. Our partnerships across hyperscalers, enterprise applications, digital data and vertical-specific. LTIMindtree, Nachiket touched upon unified transformation capabilities, best-in-class IP is to deliver the nonlinear outcomes. And now if you look at the larger deals, which are becoming the new mantra and we are seeing this coming up, we believe we can achieve $1 billion revenue synergies over the next couple of years. You have known LTI and Mindtree, at least Mindtree, while I don't want to talk about it independently, but both the companies have a track record of delivering a 17% to 18% EBIT margins. Now we are going to have cost synergies and disciplined execution on 3 parameters, we'll bend our cost curve. We'll keep on adding more and more people to our bottom of the pyramid. We'll do our SG&A leverage, which is basically doing more with less, tail account rationalization. We'll bring in efficiency in our operation by identifying more and more synergies, but at the same time, also eliminating any inefficiencies that are existing. And with this, we believe we can deliver a 200 basis point incremental margins than what historically we have been delivering -- both the companies have been delivering. Capital allocation framework. We want to ensure that our strong capital allocation framework is focused on value-enhancing investment. So we'll continue to invest to grow, which is basically in the assets of innovation, platform delivery, new growth opportunities, and as we start returning back to office, also into our CapEx. We have been CapEx light in the last couple of years, but now we need to invest into capacity. Inorganically, we want to ensure that we invest into capabilities as well as wherever we are able to expand our geographical footprint. And while doing all of these things, we want to ensure that we are delivering to continue our historical returns to all our shareholders. What is the confidence? We have $1 billion healthy balance sheet that gives us the confidence that we believe we can deliver all of these things. While doing this, we can't -- we care for our business. We also want to ensure we are caring beyond our business. We have a strong ESG footprint that is laid down. It is a part and parcel of our culture. And now we are well positioned to further our positive impact on business as well as society by adopting the bolder initiatives. Now what are those bolder initiatives? I don't want to call it out. This is consistently improving. But to make a few things and few high priority topics across ESG, we want to be carbon neutral and 100% renewable energy by 2030. On social, we want diversity not only by gender, but also by ability and nationalities. And on governance, we want to ensure while doing all of these things, we maintain a robust compliance and integrity policies (sic) [ practices ]. Now coming back and to summarize this whole sustainable value creation, how do you measure our success, right? On driving growth, $1 billion energies (sic) [ synergies ], on cost synergies and execution, improving our EBIT margins to around 19% to 20% range, on capital allocation framework, organic and inorganic growth plus we want to ensure our return on capital employed consistently stays above 40%. And while we do this, we are creating a shared value, shared and responsible growth by delivering on our bold ESG agenda. With all said this, we believe we are ready to take on all the opportunities that can come on our way and get to the future, faster. Together. Thank you very much.

Thank you. Thank you very much, Vinit. I must admit that your words have given us a lot to think and calibrate our business decisions with. And now ladies and gentlemen, and everyone, what we're going to do is actually give a quick makeover to the stage because we're about to set the stage for the Q&A session, as I had mentioned earlier. But that being said, let me also inform you all that while we take some time, a minute or 2 to set the stage, I'm going to once again urge your members of the audience who have joined us online to please type your questions. We're, of course, going to be handing over the mics to all the live audience here in order to share your questions. Now at the same time, I also realize that is going to be a very interactive session. So I thought let me do a little warm up and also sort of gear you up for that interactive session. So this is what we're going to do. We're going to get some more energy from all of you one more time. So now I want all of you to take your left hands up in the air, everyone. You can all say, "Hello. Well, hello." Super. Now while you keep your left hands up in the air, I want to take your right-hand, 2 fingers and start tapping your left palm, everyone, start taking your right-hand 2 fingers and start tapping your left palm. All right. We're almost warming up. I get that. Let's take 3 fingers and start tapping your left palm, slightly louder, slightly louder. You see there's a heat wave there. And the only way we can avoid that heat wave is there's a little rain. So let's take 4 fingers and start tapping a left palm. Now louder, louder. Super. Looks like it's drizzling, but I think we all enjoy good rain. So can we have a rainy round of applause, let's take all the 5 fingers. Absolutely amazing. Thank you for that energy. Thank you so much again. It's just a wonderful way not just to applaud for everything that's just happening here, but for the fact that we have all come together and to be part of a very, very inquisitive and an informative evening. With that, it looks like the stage is almost being set, let me inform you, here's what we're going to do. As we open the floor for Q&A, we're going to have our set of team members who will hold the mic. So I'm going to request you to raise your hands so that you can introduce yourself and then direct your question. As for our members of the audience who have joined us online, I'm going to request you to please type your questions. And let me inform you that to help us moderate with regard to the questions for the session taking place from the audience online, we'll also have Mr. Nitin Mohta joining in. So that being said, I think we're all set. Let me firstly invite on stage, once again, DC, I'm going to invite Sudhir, Nachiket and Vinit to please join in for the Q&A segment. So let's have all of you, DC, Sudhir, Nachiket, Vinit, let's have you on the stage. And let me -- and Siddharth as well, yes. Let's also have Siddharth on stage. All right. So we have all of you here. Let me inform you that Nitin, of course, will be ensuring that he will moderate the session in order to take the questions from those who have joined us online. That being said, I'll hand it over to you then. All right.

Hello, everyone. We'll probably go with the questions in the room first.

Yes. I think before we go any further, let me make an opening statement, which I think a few of you asked when I was talking to you. Silicon Valley Bank. It's a customer of ours, but the impact is not of any material value. So I want to just reassure you on that. Second thing is they're also a banker for us, and we worked through the weekend, and I think we have mitigated all the risks. So again, we are not really worried about that. So overall, we are in a very good shape. And as of now, we are just watching the space. We don't have clients which are in the high tech and the start-up, which have been funded by them, et cetera. But we are still watching the space if there is any impact. But as of now, I don't think we are really worried about whatever is going on. So I wanted to just make that statement so that -- I know it must be there in some of your minds. So I just wanted to clarify before we get into the main Q&A.

Well, thank you, DC. You took away 10 of the questions that I had from online. So hopefully, my friends here in the audience will come up with something else. So yes, why don't we open the floor. You want to go first?

This is Yogesh Aggarwal from HSBC. I have a couple of questions. Firstly, for Vinit. Vinit, you talked about growth, which has been very impressive. Can you talk about cash flows because those have been a bit weak in the recent time, so especially when compared to industry standards. So a little bit around that. And secondly, DC, now that the merger is over, I was just curious what's the kind of involvement the parent has now since there are synergy targets, are you seeing more day-to-day involvement? Or is it the same? Any thoughts on that would be helpful.

Okay. I'll just answer it in a simple word. We said consistent profitable growth, I will just amend it to say consistable (sic) [ consistent ] cash profit growth. It is a valid point, and we are working on it. As a part of the merger, obviously, things got a little bit disrupted, which was again anticipated, but we are working to ensure one, our unbilled revenue comes down and our cash collection mechanism works on a faster node. So be assured that we are absolutely on top of it. And this consistent profitable growth agenda will be a consistent cash profit growth agenda.

So as far as the parent is concerned, I think you have to appreciate that both the companies were responsible for delivering their results as far as Q1 and Q2 are concerned. So definitely, there was a steering committee, which was formed with a view that the management teams of the erstwhile entities don't lose focus in terms of their day-to-day business. And there was definitely -- it was definitely helpful for us during the integration to get the support that we got from the parent -- from the group. But I think that's beyond us now. I think the merger is complete, and it is back to the normal way of working as it was earlier. Does that answer your question?

We'll just take that first. And just if you can also stand up and ask just because the glare is too much, can't see who's asking the question. It just becomes a little easier to identify.

Yes, Vimal Gohil from Alchemy Capital. So question for you. You spoke about -- you spoke a lot about scale coming in with the merger. Now over the last couple of years where digital has taken so much of importance, deal sizes have sort of shrunk meaningfully. So my understanding here is that, that puts the Tier 1s, and of course, now you at par with the smaller specialist IT companies as well who are doing a lot of work around digital. So how do you compete with them? That's question number one. And question number 2 for Vinit, you spoke about efficiency in operations. If you could just highlight something more on that, maybe utilization levers, on-site, offshore, pyramid, et cetera.

So if I understood your question, as far as -- if you look at the digital deals in the last, say, the last 2, 3 years, you might not have seen a very large deal announced. But as far as competition is concerned, we have been competing with Tier 1s all the time. So that is nothing new to us. But one thing which I always clarify is that if you look at the clients, they're giving work to us in 2 aspects. The first aspect is they want to look at their revenue enhancement, which is what we talk about redesigning the business models, new experience, and that actually involves a lot of application development, so cloud migration, so on and so forth. So essentially, this is the digital part that we have been doing and this piece of work typically tends to be short-cycled, which means that you do a short cycle work, but the moment that work is complete, you'll go to the next work, so on and so forth. So which means you may be doing a $10 million over 1 year, but if the work is going on in a transformation mode over the next 3, 4 years, you end up doing $40 million over 4 years, 5 years, whatever it is. So essentially, you may not see a TCV upfront, but these are also large deals that happen if you become a strong partner in that particular situation. The second type of work that we do is a typical efficiency play or a cost takeout. And in an efficiency play, the deal sizes tend to be -- the deal tenures tend to be simply more of 4, 5 years or even longer. Those are the longer TCV deals. So in the current situation that we are in, given the capabilities that we have as an integrated organization, we are actually well positioned to play on both the sides. And that is what is very important to us and that's what I think Nachiket and Siddharth elaborated the way we have organized. I think the whole idea is that can you create an organization which is simple so that we can provide agility and nimbleness across the organiztion to the other stakeholders also beyond the organization. That's what we are doing and that's what we are very confident about.

In terms of the efficiency factor, there are standard levers. Obviously, we'll like improving the utilization, but importantly, I'll give 1 or 2 more examples about it. While today -- well, right now, there is a season of RRR, right, everywhere. We also have a slightly modified RRRp which is basically right role right pricing, where to ensure that our -- all the resources are getting billed at the right price. So that's one. The second part, we want to ensure, like for example, how are we managing our bench effectively. Now with the labor market, which was pretty hot in the last 2 years, most of our companies and including us, have gone and done a little bit of hiring ahead of time. We want to now manage. We have a good bench. We want to manage that bench very well before we go and step the pedal on doing incremental hiring. Third, give us subcontractors. Now subcontractors is per se not bad. But what we want to ensure is that subcontractors are getting billed. They are not coming ahead of time and sitting without getting billed to the customer. We are ensuring that we are getting billed to the customer at a higher rate than what we are paying to the subcontractor. So these are multiple levers which we have identified and we think that there's an opportunity for us to improve on this in order to make the margins.

So I don't think he talked about price increase? I think we talked about managing costs better given the market conditions that we are in. And we are reducing subcons wherever it might not be profitable, given that we now also have a higher bench as a combined organization. So the idea is to effectively utilize our bench, get our utilization up and the other pieces that Vinit talked about.

By the way, the customer does pay if it is a real niche skill the customer does pay extra. So -- and what I meant was to ensure that we are getting the right price, we are not getting the average price, we are getting that right price that.

Take next one, Sandeep.

Yes. Sandeep Shah from Equirus. Just for clarity on one of your presentation on margins. So you said from 17%, 18% currently, we may go to 200 bps higher by FY '27. So you expect 17%, 18% by Q4 itself? Because where we were in Q3 was 14%.

So Q3, we had called it out that it was basically impacted by one-offs, right, both from a normal furloughs, less working days plus the integration costs. We do anticipate that we'll bounce back in Q4, but more importantly, we want to get back in our short to medium term. Our endeavor is basically to get back to what we were historically delivering. And from there, to take it forward and improve it by 200 basis points to take the journey towards the 20% range.

So we should take 17%, 18% as FY '24 target?

I have not mentioned any guidance. We are not giving any guidance.

Yes, anyone want to go ahead first? Can we have a mic here, please?

Atul from Motilal Oswal Asset Management. A question for Sudhir. So one of the slides that we saw was 15% dollar growth for the last 5 years. And as we look 5 years ahead, do you believe this growth can accelerate in any form? And if you were to just do the simple math, like if you do 15% in 5 years, you'll get $8 billion. You guys have called out $1 billion revenue synergies, that makes it $9 billion. So do you believe from the setup that you have and the market that you see. In absolute terms, the revenue number is still in terms of if you look at the more Tier 1s, it's still much smaller. So firstly, your belief on perhaps the possibility of this happening. And what are the challenges? And what are the -- what are things that we need to add in any form to perhaps achieve this number?

So if I step back and look at the market, right, and we are in a secular expense cycle. There is absolutely no doubt about it. Irrespective of sector, there is no sector that is not investing in new technology, right? I mean it is -- and you can just -- all the vectors that you see, whether it is cloud, data, digital, even you look at the ERP spends that are happening, et cetera, those are in a -- so that what Nachiket spoke about earlier, right, right from experience to core to edge, there are investments happening across the board. And yes, these are multiyear investments. Now these investments may slow down a bit, but these investments are not going away. So this -- the spend is -- that's why I'm calling it a secular spend. The spend exists, right? The second thing is once you know that the spend exists, right, the market exists, then it's about our ability to get a larger share of that spend than perhaps others, right? And I think that's why the past track record counts, right? And remember that 15% growth year had a pandemic year in it. And frankly, compared to the pandemic year, this macroeconomic stuff is sort of quite trivial. There was a quarter in the pandemic, where we were generally wondering as to how we would do business and how our clients would do business, right? So we've managed to grow as LTIMindtree, even grow at that time in that pandemic year. So I think the confidence that we have is that we have been able to find growth even in the most difficult times, gives us that confidence that we have the ability to do so. And frankly, getting together at LTIMindtree, we have so much more to do, right, which is what I said, even if we were just -- and I would not do this, but even if we were just internally focused, right, we have enough avenues for growth in what exists within our organization today. There are net new clients to sell net new services just within our portfolio. And I think that is what the whole -- that's why we feel confident that, yes, we're on a good to tech spend cycle, we've got a good track record of growth, and we've got internal [ parts of work ] that we can leverage, we should be able to continue with our growth momentum.

Just one follow-up, if I may. In terms of say for example, if you had -- if you were of 1 entity growing up to $4 billion versus now that the 2 entities have been combined to be $4 billion. Does -- and especially in the large deal domain when you're contesting? Does client [ referenceability ] for the large deal be an impediment to winning those deals in any form because you perhaps may not have executed deals of that size? So is that an issue to begin with? Or what is the view there?

Yes. See, of course, there's client [ referenceability ] is there. But I think what happens in most large deals is, right? The clients -- their objectives of -- because large deals, they have about 3- to 5-year horizon, right? In most of these horizons, what they're looking for is a combination of cost control as well as some transformation. So frankly, there are 2 elements that are more important to clients. What is your solution? What are you providing as the solution? And Siddharth spoke about Thrive, which is a new solution that we launched and the structuring, right, the whole deal structuring. Once you have these, right, then they're looking for parameters to say, can you execute on that, right? And we were a track record of being able to do so. Even in our erstwhile entities, right? We did $200 million-plus deals. So actually, it's not an issue. And in fact, if you see the advisor ecosystem, right, they absolutely -- if they put you on a shortlist, they do it because they believe that you can do it, right? And that's what's reflecting in our large deal pipeline as well. I think for us, the question is to see how much of that we can actually convert, right? So for us, I think the right to play exists. It's the right -- how we actually convert with differentiated propositions that's going to be. You saw our order book in last quarter. It's sort of reflective that we're in a strong position to leverage this growth. Now again, there is -- in the short term, I will still say that clients are spending over a longer period of time. That is something that's a trend that we do see. There is caution in the environment. So we need to keep that in mind as we look at how we expect all these deals to when they -- when we expect them to close and when we expect them to start and what revenues we expect in the coming quarters.

Just to add to what Sudhir said, it's not just scale that is important and larger but the diversity of their scale. So if you have a typical application outsourcing environment, traditionally, either of us would have been strong one, say, ERP and data or would have been strong on digital and OT or engineering side. Now as a combined entity, we're strong on all 4 towers. And that's really what customers gives us right to play because they now see that we have capability that can actually genuinely help them across their entire spectrum. So that diversity in scale helps. And we have enough client testimonies in executing on each of these towers as individual entities. So it doesn't affect that we have not executed it together because these are not anyway fungible skills, but these are complementary skills. And that's really what is good about LTIMindtree merger is bringing the diversity in the scale for us.

Yes. Vibhor here from Nuvama. So I got 2 questions. One, I wanted to ask -- now that we're a $4 billion company, there are different kind of deals that we would be bidding for. And of course, the proposition has always been that we would be looking for larger deals. So has the set of competition changed for us, the companies that we are competing with, the vendors that we are competing? And has that forced us -- I mean I know it's early days, but do you think that would probably force us to change our offerings in some manner, maybe on the pricing front or whatever we have to offer? And the second and broader question, I have no DC tried to preempt that, but just to want to get your opinion on how do you see the current environment, the current things that are playing out in the financial world in the U.S. as of now? I know it's early days, small regional banks, which are looking at. But you've all been in the industry, we've seen the GFC crisis. How do you think at least at this point of time, I do see this playing out and impacting that expense, if at all, for these banks or the larger industry?

So your -- let me answer the second question. I see it as the way you are also seeing it, to be honest, because what happened over the last weekend, I don't think it was really expected in any way. But overall, I always have maintained that our reflection of confidence in the system or in terms of ARPU, what we see in the market is based on our portfolio of clients because if you look at what has been going on even within the same industry, 2 clients are not behaving the same way. And given that scenario, you have to stay close to your clients and your portfolio of clients is a reflection of the confidence that you have in terms of your growth, your business so on and so forth. So from that perspective, I don't think there's anything which is a red flag at this point of time. But we are watching the space as you are watching and we have to just hope that things stabilize as we go along. So I don't think I can comment anything more than that. But to your first question, which is about competition and approach, I don't think there is any fundamental shift to the competition because if you look at our competitors, it tends to be the Tier 1 players and some of the other digital players also we have been competing with. I don't think that is fundamentally going to change. But what happens in terms of large deals is there are a couple of aspects of a large deal or 2, 3 aspects. First of all, you have to get a seat on the table. And the seat of the table is sometimes very critical based on the size and the scale that you have. Now that's one area where as individual entities, we did have challenges. And that's why in some deals used to form -- we used to go to the market together even before the merger was announced. So the scale becomes important to get a seat on the table. The second thing is when you talk about some of these deals, it's the solution that matters. And that's, as Nachiket articulated, if you have strength in all the towers, all the areas that we have service plan capabilities and if you are strong in every area, then that gives us the confidence of creating the best solution for the client. And the third element that I can think of, which is most important is the overall economics, the overall financial engineering that you need to do. But even when you do a financial engineering in certain cases, the first year is always very difficult for a large deal. So when you do a first, it can be margin dilutive to some extent. Now as an individual entity, you can only do so many large deals because at the end of the day, we want consistent profitable growth. We don't want to dilute our margins. But with the combined entity, that gives us the ability or gives us a cushion to kind of go for these deals in a much more bolder fashion than what we could have done earlier. So that's the third aspect of it. So I think these are some of the things where we are feeling very, very confident. We feel very strongly that we can compete with anybody else in these situations. So as and when -- there is already some evidence, Sudhir, I think, talked about it. There are quite a few deals that we are pursuing. And we are very confident that we should be able to come out in flying colors in these situations. So Nachiket, do you want to add anything?

Can you hear me? Hello. I mean I think your question was on who we compete with and what's our experience and I think DC answered that. I would also add that as part of the design that we rolled out, we feel we're in a far better space to -- or a place to uniformly differentiate because now we've created global capability units. So the best practice on a data deal in the U.S. or in a certain segment in the U.S. and a certain customer now by design flows across the globe. So while the competitors haven't changed, our edge in the market will be far more consistent, far more repetitive. And while it's a very nuanced point, it's a big change in how we go to market. So that is quite exciting to us as well.

We will take Sudheer and then we will take you.

This is Sudheer from Kotak Mahindra AMC. My first question is on what's happening in the U.S. banking, of course, is still -- situation is very fluid. But one trend that looks to be happening is there is a big migration of deposits and account holders from some of the smaller banks to larger banks. Sudhir, you mentioned that we work with almost 11 of the systemically important banks and our top account, and we had acquired a platform from them in the past. So what I wanted to understand is how does the benefit actually flow through? If this theme actually plays out to be a bigger theme, how does the benefit flow through to us? Is it like a real-time wherein some benefit is essentially linked to the AUM or the number of account holders because there is some platform component in it? Or is it just a capacity or an outcome kind of a project where the benefit flow-through will happen over a period of time as the client also grows? This is question number one. Question number two to DC since you -- the entire presentation is structured around the theme of paradoxes. The biggest paradox that we are seeing in the industry right now is what you highlighted just a few minutes ago, that no two clients are acting in the same way. So why do you think -- so of course to the extent that you can answer, what makes this situation very peculiar compared to some of the earlier crisis that we had seen, be it a GFC or somebody was juxtaposing the GFC or even euro debt crisis so on and so forth?

Both are loaded questions. Do you want to think before -- and I can answer the question again.

You can take the second question. I'll take the first one.

Okay, go ahead. Go ahead.

So on the first question, right, if your point was referring to the business that we have in Canada with Unitrax, which is where we do transfer agency work where assets under management is the unit of billing. Now there, we are a platform services provider to clients like the RPCs and all of the world that actually provide the investor services on behalf. And that is in Canada. So it is not in the U.S. So it's a Canadian operation. It's 60% of Canadian assets under management. So frankly, zero impact there. I think the broader point is our -- the number of clients that we have in the banking sector, which are regionals in the U.S. is very, very small, and the amount of revenue there is -- as I think DC said earlier, even including SVB, is negligible. I mean it doesn't make a difference to our overall thing. So I think we're yet to see what happens to the G-SIBs as part of this. But I think we'll -- for us, the work that we're doing in banking is in GRC, which is a major part of the work that we do. In fact, a lot of the data we work -- that we do within GRC. So we think that there is a new banking act in the U.S. as well. So in any case, there was -- there is already a focus on GRC at multiple levels. That focus on GRC will enhance across the board. It won't be just limited to regionals. It will go up across the board and I think that is something that we anticipate will start to happen in the coming months.

See, on the other question that you asked, I think we have to go back to the history. So if you look at 2008, what happened when the financial meltdown happened. I think there was no second thought about the fact that everything came to a grinding halt. Every company in every industry followed the same pattern. And that's what I mean by an industry coming to a grinding halt, maybe financial services led the pack, but then every industry got impacted. If you look at what happened during the pandemic, it's a travel industry, which was right in the middle. The travel industry got very, very badly hit. In fact, nobody knows it better than me because we had a significant travel portfolio at that point of time. I still have. But apart from travel, the other industries did not really get hit to that extent. Now to your point in terms of what really happened, why did I make the statement that 2 companies within the same industry are not behaving the same way. It could be probably attributed to some of the behaviors that we have seen during the pandemic because what you have to understand is so long, every company used to say that they are doing digital. But the pandemic really forced companies to truly become digital. Doing digital in pieces doesn't make you digital. But going for -- building a direct-to-consumer approach, omnichannel or a contactless, all these things are truly transforming our way of doing work and thinking of creating new business models, new revenue models. And that is like truly becoming digital, of course, using the digital technologies. So every company started thinking on those lines. And that's why you saw in the last -- I mean the pandemic 2 years, 2021 until even last year, so much of cloud adoption. Everybody wanted to have a footprint in the cloud. The cloud is critical because if you want to really do transformation, you have to get into the cloud. It enables your transformation faster as we go along. But then you have a slowdown right now. So when you have a slowdown in terms of many clients are now talking about cash preservation, preserving the cash. Then they are also again now thinking in terms of can they continue with their transformation or they will slow down their transformation. So the reason why we see 2 clients within the same industry behaving differently is in real life. I can't call you the client names, but I can tell you, for example, in retail and CPG. We have got 2 clients. One client has decided that they want to aggressively go ahead with the transformation that they have embarked on. They cannot slow down because this transformation is a 5-year journey for them. If they slow down, then they will lose the edge in the market And that's a time to market thing that I talked about earlier. Whereas I have another client in the same segment where their market was predominantly Ukraine and Russia and their supply chain was in China. And it is very unfortunate that they just don't know what to -- how to react to that. So they are definitely not going to go aggressively with the transformation. They're slowing it down significantly. For them, the more -- the focus is now, can they take cost out of the system so that they can continue to fund the transformation. So that's what I mean by 2 clients within the same industries may not be behaving the same. I just called out one example. But if I look at other industries also, everybody is at a different stage of their transformation journey. Somebody wants to go ahead aggressive and somehow find the dollars to fund those in-flight transformation, whereas some people are trying to slow it down, we know what you want to achieve in 24 months, they can achieve the same thing in 36 months also. And by the way, if you achieve in 36 months, they can find the dollars easily over the next 36 months. So that is what I mean by clients are not behaving the same way in across the -- even within the same industry. Does that give you a perspective?

Before I move ahead, I'll just take some online questions. So Rishubh from [ Metza ] Capital has asked, do you expect leadership attrition on integration is behind us and is this stable?

That Question to me? So I think the integration is over. For all practical purposes, we have got to day 1. The day 2 is just a few weeks away. And I think the organization at this point of time, it's fair to say it's quite stable. And probably, I should add one more thing is that whatever happens in an organization as we talk about, everything cannot be related to integration all the time because integration is -- it happens over a period of time. After that is BAU. So even if there is some leadership change happens or some attrition happens, it is part of the BAU that happens in every organization. And given the fact that 2 organizations were having significant leadership bandwidth, we can always manage the changes the way we want to manage. So I don't think there is something that we worry about at this point of time.

Thanks, DC. The other one we have is from Amish Kanani from JM Financial. He's asking if we can elaborate on the area of synergies, sales of $1 billion in cost, how fast can we realize our synergy goals?

So I think we need to put the time line there, right? So and I'll go back to what I said, the opportunity exists and the combination of those, is it the same answer, right? If you can do the math, right? You can just do the 374 $1 million accounts. You know what revenue they provided 3 service lines, if we can expand that to 5 that itself is a big [ fill up ] to this process. Then of course, we've got large deals, we've got the hyperscaler ecosystem. So I think the time line that Vinit had in his presentation is achievable because all of the factors that are in our favor here.

Same on the synergies factor, I clarified it very clearly that we intend to achieve those 200 basis point incremental margin benefits by FY '27. Again, this is more of an aspiration, not to be looked as a guidance. It's -- we are definitely -- internally, our targets are much more aggressive than what we have stated here.

Thanks, Vinit. To our online audience participation -- participants. Please keep your questions flowing. Some of those which you have asked have already been asked in the room. So I will not be taking that up. So we'll go back to people here in the room.

Manik Taneja from Axis Capital. So I have a broader industry-specific question. Over the course of last decade or more, we've heard that deal sizes just kept on getting smaller. In that context when you're saying scale is much more important for large deals now, do you think we are seeing a reversal to that rate apart from the ability to essentially do more financial engineering when it comes to larger deals?

No. I don't think we have said that large deals are more important. I think what we have been saying is if there is a large deal on the table, then we should be in a better position to attend to that large deal than what we could have done individually. But as I explained some time back, I think the misnomer that we have is -- I mean I was explaining that there are cost takeout initiatives, and there are revenue-enhancing initiatives. This first one is where you are getting annuity deal and this is where we can announce a TCV over 5 years or whatever it may be. But on the second thing, which is more in terms of a transformation deal, that also can be a longer deal, that can also -- we have done for -- we have announced a large transformation deals over 5 years as well, where we become the digital partner. And we support them in terms of -- support a client in terms of all their transformation. Those kind of deals, I think clients have taken our call that they don't want to do it over 5 years in one shot or rather they don't want to announce a TCV at one shot. But you do it piecemeal SOW to SOW, but the same deal can be easily a $200 million deal over 5 years, just that you don't see the TCV upfront. That's the only difference. But the important thing is what Nachiket and Siddharth talked about is if there is a large deal on the table, then we should have the muscles to -- we should have a seat on the table and we should be able to deal with that. And we should be having the ability to win that deal competing with the Tier 1s better than what we could have done earlier.

Okay. This may sound a little strange, but folks is a fallacy in your argument, right? The argument is that if deal sizes get smaller, then smaller players will win more. That's not the case in reality. If you really look at the market, right and the market that we compete in, and now, frankly, across all these 9 service lines, we can actually -- even if I extrapolate the smaller deal sizes, instead of having 4 or 5 service lines, we have 9 service lines to do smaller deal sizes. But if you really look at what's happened in the market, especially over the last 4 years, the majority of the market share, if you look at how much market, who's got what market share, the maximum market share across deal sizes, right, whether small or big, has been captured by the Accentures, the EYs, the Deloittes, and I would add Infy and TCS to that list, right? So I would say that, that argument itself needs to be revisited because these are the players who have grown much faster than any other period. So frankly, it has caught some of the other people out who frankly didn't have their strategy in place, right? So because some Tier 1s did not have their strategy in place, they didn't benefit as much as the others did. The fact that we have that DNA from what we have already done, now we have more service lines. So we can continue to do what we've already been doing and add large deals or further large deals to that portfolio. That's essentially what we've been trying to say to you.

I want to give you maybe examples to highlight the points that Sudhir and DC made. I think the nature of large deals is changing and 2 or 3 personalities, one the lazy large deals that the industry got hooked on to which is support a bunch of applications and infrastructure, there are not too many. But the proactive large deals, for example, one of them we're working with, a large insurance company which wants to modernize their entire application and data landscape, proactively built. It's about $100 million, $150 million, I would say, over 4 to 5 years. Plenty of them out there. But we've had to work towards building those large deals. That's one personality. Second, areas like security. We have another insurance company in this case, where they're looking to build their entire CECO function ground up. It's a $100 million deal over 7 years, right? So the point I'm making is, I think there's a changing personality of large deals. In terms of the scope of work, I think Nachiket spoke about the diversification of underlying capabilities. In terms of how you build the deal out, so a lot less reactive, far more proactive. And with the collective capabilities with the organizing muscle that we have, we feel very excited about being able to create and win these deals a lot more than we did in the past.

Sudhir to your comments, we have got an online follow-up from [ Sundaresan ] from [ Avendus Park ]. He's asking what percentage of these smaller deals can be converted to large transformative programs over the years? Or is there a linkage there?

No. I think, see, for us, we -- and I'll go back to that slide that I had, right, whether it's business model transformation, experience transformation, ops transformation or tech ecosystem transformation, right? All of these are journeys. And I think DC was making that point. Some of these journeys will start small. They will start with the consulting engagement. They will then go on to an architecture assessment, then they will go on to some feasibility analysis, then go on to some POCs to actually prove that there was MVP kind of things and then get on to full blown sort of execution, right? So it may that -- that's why it's important that the journey is important. It's not -- in fact, it may start at a very small place, but end in a much bigger fashion. And that revenue curve is very different. And frankly, if you saw the slide that I had on my -- on cross-sell/upsell, you can see we have a very strong consulting offering. And those are the things that are now there in our portfolio in our armory essentially, which are much more firstly, much richer because they are across various aspects, various service lines and at bigger scale. So this is why these deals are -- essentially the way we look at it is, which journeys are we involved in, at what stage are we involved in and how do we make sure that those journeys progress over a period of time.

I'll take Girish first and then.

This is Rahul from Dolat Capital. So firstly, if you could run a query on Lumin about what could be our growth for next year. And especially given the fact that we have this $3.7 billion, even the old adjusted TCV, while the revenues are at $4 billion. I think it used to be $2 billion, $2 billion when we used to publish this data last year as an individual entity. So with lower TCV than revenue, how it looks like?

So just on the math, right? It was $2 billion and we are $2 billion, and it's 3.7 billion when we are $4 billion, which is the $15 billion. If I do a like-for-like, so it's a very similar number, frankly, that -- and this is the qualified deal pipeline. So I'm not worried about the large deal pipeline. So if that's the -- yes, from a -- I mean the -- I think if you ask me, as Siddharth just said that some of this -- the way these deals are shaping up, what we're looking at is the richness of these large deals, right? If you saw the -- our service offering slide, right, you didn't see any applications management, application maintenance, et cetera, et cetera, which is a typical service offerings. These are all the new edge service offerings that clients actually generally want. So we are looking at these across the board. So I think that is actually more exciting, frankly, in fact, even more exciting than just also the overall size of the pipeline.

Yes. And secondly, you said we work with probably 12 of top 20 G-SIBs, but I think SVB was 1 of the top 20, if not.

No. It's a top 20 bank in the U.S. SVB was not a G-SIB, just to clarify, okay?

But more importantly, also, as you said that, of course, different clients are behaving differently. But based on your past experiences of such scenarios, can we say that at least from a projects, which are low otherwise in an immediate future, other projects that would take a hit, if not on an overall BFSI deficit?

See, if we look at what is happening in the BFSI space, right? What we were seeing, as I said, this is one vertical where we have coverage across the globe. Clients are behaving differently. Clients in Australia are actually seeing a different business environment. We've got banks that we work within India, in Middle East, they are operating in a different economic environment, right? In fact, we've got a European bank, which has just signed up on a multiyear deal with us because they're looking at what DC talked about, some accelerating their business transformation because they think it's a place where -- sometimes in difficult times, some people choose to actually overinvest because they feel they'll be stronger at the end of those times. So if I look at it across the board, I think as I said, there is general caution in the environment, which I keep calling out, and does translate into what happens from a spend perspective. But what we need to look at as a leadership team is how do we see the long-term trend in demand and therefore, how do we plan an organization that actually benefits from that long-term trend in demand, and that is secular across the board, including BFSI, which is our largest vertical. And by the way on Lumin, I think all of you guys should buy Lumin. Seriously, it will write half your reports that you're going to write about us. No, I kid you not. I'm going to sit and be at Lumin with that, all queries are welcome.

Mihir Desai from [ Chameleon ] Asset Management. Sir, largely wanted to understand, I mean, given the corporate action and situation, which is there. So what are the steps that we have taken to adequately ring-fence our leadership? So just wanted to understand the steps that we have taken to adequately ring-fence the leadership? The second question was on the Lumin platform, which is there. So I mean how big is this platform for us as a percentage of our business? And how should we see this business over the next 3, 4 years? And how is the monetization that happens here? And my third question was on the fact that, I mean, given the fact that 33% to 35% of our business, it's largely BFSI. So what is the regional rural banks exposure in this? I mean, that would be providing more clarity.

So I'll take the first one. Second one, Siddharth, the third one, Sudhir. So what was the first one? Ring-fencing. That's on history. I mean that has been done a long time back. And I think we kind of disclosed that for the key leaders, there has been an ESOP, which has been rolled out so that the whole ring-fencing has been dealt with. So that is history as far as we are concerned.

Yes. I think the question you had is in Lumin in terms of how do we monetize, what's the size of business? Did I get that right?

Yes, yes.

So Lumin is part of our Fosfor business, which is our data products business. It's purely IP. It's not a services business. So it has a very different rhythm of working, very different ticket size. So I would -- we don't disclose numbers by products and other things. But what I can share with you, which I did talk about earlier as well, we are seeing a very rapid uptick in client acquisition. We are competing with the top tier players, supposedly the top tier players in each of these categories and beating them routinely. We are seeing uptick in large Fortune 500-type clients. And the fourth piece I would say is we are seeing very high customer success. Customer success in products is very important. Is your products being used by more and more departments, more and more people? And are you able to cross-sell, upsell your product because we have 4 products as part of Fosfor suite. We are seeing very rapid growth on the customer success side as well. So fast-growing business, fast competing on the top tiers, good ticket size from a competitive perspective and a very strong healthy customer satisfaction scores.

And just last question was BFSI is 33% of our business. So what is the regional rural banks of U.S. as a exposure?

I think it's actually 36% of our business, no. Yes. So it's a little higher than you -- no, I think as I said earlier, right, regional -- so there are -- in the U.S., there are the big -- they are essentially G-SIBs mostly. And then there are super regionals, there are regionals and then there are small banks, right? So our exposure, in fact, all the banks that you heard up till now, only SVB was a small client of ours and the others are not clients of ours. That's all I can say as of this point in time. We do work with certain regionals, but I think they're in spaces where we are comfortable as to where they are right now. And as I said, right, I think for us, it's -- as DC said, it's a wait-and-watch thing. If it does lead to -- see some of this happened because some of Dodd-Frank was rolled back, right? It was rolled back in 2018. If that part of the Dodd-Frank rollback comes back in, man, there's -- that is what we did for 10 years. So we've not forgotten what we did for 10 years. So we will go back and do similar work in the future. I think we -- frankly, we are watching the space to see what opportunity emerges from this, not the threat.

Just wanted to add, by the way, if you went to fosfor.com, you'll see a lot of our customers because we put those brands and names out there. So highly encourage you to see who's using the product.

Girish Pai from Nirmal Bang. This is regarding short cycle deals last year and FY '22, individually a lot of your growth from what I could make out of what management commentary was given was driven by short cycle deals. We've seen some of your peers indicating that there are fewer short cycle deals in the market right now. What has been your experience in FY '23?

When you say short-cycle deals, you're talking about not the multiyear annuity deals, right?

Right. Last year, FY '22, there was [ deals closed ]...

All this -- the decision to close the deals.

Mr. Jalona and I think even you had mentioned -- I think Q2 or Q3 of last year FY '22, a lot of the growth was driven by these short-cycle deals.

I think that's still the true. That still holds good because, as I explained, once we become a strategic partner to a particular client and the client has got a journey to transformation, then there will be a deal, which will be for 6 months, then they will be followed by another 3 months, another 6 months, so it goes on. But the critical thing is to get shortlisted and be one of the strategic partners for that particular client in their transformation journey. And these kind of deals over a period of time adds up to quite a sizable deal, and that continues. I guess what I misunderstood was, if you're talking about decision cycle, the decision cycle has been taking a little longer of late and that we have called out. But the decision to take -- to start a new program, I think that is getting delayed. That is a consistent pattern that we are seeing in many situations.

Another question on people costs. Last 24 months probably, we've seen some irrational increases for backfilling and even holding back people and stuff like that. Do you see any situation where you claw back some of that in the future in the next 12, 24 months?

No. I don't think -- I don't think there is any question of -- what do you mean by clawback? In terms of getting some...

Putting in -- I mean, I've been hearing from media reports and stuff like that, there are certain higher standards being put on some of these employees to Tier 2 and stuff like that.

That's a normal thing. That is not something, which is different. But what we will always do and see this is -- when you talk about people cost, this is part of your margin. And margin is not something you can just do quarter-on-quarter. It has to be a program, which is -- has to be a continuous process. So as a part of that process, we are continuously looking at people cost. And wherever we have -- of course, during the pandemic, there was a lot of irrational behavior, which all of us understand and we had to run the business. So we did a few things, which everybody else also did. But there is also a time, which will -- when we will be able to rationalize some of those things. And I think the time has come now. If you look at the attrition figures right now, the attrition has significantly dropped in the last 2 quarters. And that is, again, we don't want to get into the details. But once the attrition stabilizes, then we also know that some of the hiring costs and all those things are -- replacement hiring, all those things also will come down. And the good news is that many of the people, if you have hired them at a premium when we do the normal increments, then we will also do some adjustments over there. We will make sure. So those are some of the disciplines that we follow as part of execution. I think that is a continuous process. Nachiket, do you want to add anything?

Just one thing I'll add. I think Vinit mentioned on his slide, right, bending the cost curve. That was all about essentially changing the direction of the cost as a percentage of revenue. And one of the main lever for us as a larger organization is also that you can organically build skills better because you have scale. On a particular competency if you had 2,000 people as an individual organization, as a 4,000 or 5,000 people team, you have a better ability to manage our pyramid than you had 2,000 people company. So we -- since we called out that as a merger synergy is because now at a bigger scale, it allows us to manage our pyramid better. Hence, we can bend the cost curve. That's the way it goes.

We'll take the last question here.

Abhishek from Incred Capital. Couple of questions for Sudhir. So you mentioned about the large deal pipeline. Is there an element of decision-making delay in that pipeline, which is causing the bunching up of the number? The second thing is any color in terms of the number of inquiries that you're getting or how the clients are behaving from Europe and U.S. now versus, let's say, 3 months ago? And the last thing is, do you believe that there could be a bunch of closures that could happen because some of the pipeline -- you made the pursuit, could have been longer for 3 to 6 months and then there could be a positive swing on the closures?

I think, okay. Firstly, I don't think there's a bunch up of the pipeline even from a large deal perspective. What we are saying was, we are seeing large deals across the board, right? So right from all our service line, whether they're enterprise apps that are cloud, they're at data, their security across the board, we are seeing deals -- larger deal sizes across the board. So that's what I meant. Are decision-making cycles longer? Yes, the answer to that is yes. People are taking longer and there is more -- there are more I guess, review cycles that they're going through before they actually commit to some of those to be completed and then the cycle of them also executing that is longer than. So I would say that on those factors, I think it's going back to what it was pre-pandemic. That's the best way to look at it. Those were perhaps the more normal cycles that we've seen in the industry, pandemic accelerated cycles. Now we're going back to sort of -- I'm talking about large deals here. Some of these digital transformation things that DC mentioned are actually still proceeding at speed. You had two more questions, then it's late.

Yes. The other one was basically how are clients reacting? I mean is there any change...

Oh yes, between U.S. and Europe? See, in the last 3 months, I wouldn't -- the thing is there are the factors that are affecting our clients, right, high interest rate environment, inflation, supply chain, war in Europe, et cetera. In fact, Europe, if you look at in -- sort of it's been a tough year in Europe just from a currency perspective, right? It just pains me -- I won't even tell you how much money it is. But other than the currency factor, our European business across Europe and Nordics has actually done very well for us. So I think that built a strong base of accounts as well in this time period. There are some very good large deal footprint in Europe as well. So other than currency, which does -- which hurt us very badly, I think the other factors are okay. U.S. is still continuous, it's 72% of our business. It still continues to be the strongest. Economically, the U.S. is still doing well. If you look at it, that's the fact. In fact, even with the stimulus, the statement that [ Jalona ] and others have made on stimulus money being spent, there is still $1 trillion worth of stimulus money in bank accounts in the U.S. right now as we speak. So that's more money than people have traditionally had. So I think the way to look at it is various other factors do lead to boardroom caution, that boardroom caution does translate into spending caution. But it is -- I think a lot of people are waiting to see how things pan out in the next 2 quarters, and then we will start to see a different behavior going forward as they start to reinvest into -- as to -- as the pace picks up, I would say. The monies is there, the pace of that spend will start to pick up in the -- I think, in a couple of quarters' time.

Thank you, DC, Sudhir, Nachiket, Vinit, and Siddharth. I would request the leadership team to remain on stage and request Kavea to make certain announcements to our audience here. Thank you.

Thank you, Nitin. And with that, ladies and gentlemen, we formally close the event. So I want to thank you all. And I'm going to thank our members of the audience as well, most importantly, both live as well as those who joined us online for keeping those questions coming. And before we call it a close, I'm going to also inform those who present here, we have a metaverse pod on my right side. So towards the end of the program, I'm going to urge you all to please connect with the team and also understand all the metaverse capabilities, that include the ability to create virtual worlds, 3D models and interactive simulations. We also have a really cool photo booth just outside. So please ensure you get to strike a pose and take the event beyond the walls of this venue. With that, we officially call it a wrap. So can we have a round of applause for everyone for the amazing questions, for that interaction. Thank you so much for sharing your insights as well. Thank you once again. And I'm going to cordially invite you all to join for dinner and coffee. I'm going to request our leadership team to please join our audience as well. Thank you once again.