# Day 55 — YouTube 自动生成字幕（AUTO_GENERATED）

覆盖训练段 000–15 分钟。已去滚动字幕重叠。ASR 生成可能含识别错误。

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a very good evening everyone and thank you for joining infosys's first quarter Financial results my name is Rishi and on behalf of infosis I'd like to welcome all of all of you um as I always do I request one question from each media house to accommodate everyone over the next hour and with that let me invite our chief executive officer Mr salil parik for his opening opening remarks over to you salil thanks Rishi uh good afternoon and thank you all for being here with us today

we started the financial year with a strong performance in quarter one across multiple Dimensions including broad-based Revenue growth expansion in operating margin strong large deal wins and strong cash generation Our revenues for the quarter grew 3.6% sequentially and 2.5% year on-ear in constant currency terms I'm particularly pleased with 7.9% growth in the financial services segment where we are seeing Improvement in client spend in North America all geographies and most industry groups grew sequentially volume growth turned positive after several several quarters we had another strong quarter

of large deal wins with 34 large deals at a total contract value of $4.1 billion our clients see us as a preferred partner of choice in consolidation cost takeout and efficiency opportunities this is also a reflection of our leadership strength with the mobilization of our margin program we see positive impact on operating metrics this resulted in our margin expanding by one point sequentially sequentially free cash flow was highest ever at $1.1 billion we continue to see strong traction from our clients for generative AI programs delivered

through topaz Enterprises are focused on their own data sets that can be used in generative AI large language models that create huge impact for them along with our overall robust performance in q1 and strong opportunity pipeline we are seeing early signs of improvement in Financial Services vertical in the US while discretionary spends continue to be under pressure a highly differentiated offerings around driving efficiencies at scale and the transformation capabilities around transformation capabilities around generative AI have positioned us well in this market with respect to our

recent acquisition of inch we have received the required approvals and have closed the acquisition acquisition transaction given a strong performance in q1 and our current Outlook we have revised our Revenue growth guidance for the full Financial year to 3% to 4% growth in constant currency terms our operating margin guidance for the financial year remains at 20% to 22% with that let's go ahead with the questions thank you thank you salil we will now open the floor for questions joining salil is Mr Jes saraji financial officer

officer infosis with that the first question is from ru Singh from CNBC tv18 hi uh here Ru from CNBC thank you for the question uh you know huge upgrade in the constant currency Revenue guidance 3 to 4% so firstly while you highlighted in financial services in the US you're seeing some signs of a pickup uh overall you know what is your sense on discretionary spend coming back uh where are the verticals you continue to see weakness and was all of this upgrade organic or you know

have some of your past acquis positions that you've now completed had some role to play uh in this upgrade that we're seeing um also your margins are up about 100 basis points over the previous quarter I just wanted to understand you know is there head room for further growth uh When You're Expecting to take the wage hikes Etc and just one more question if I may on uh you know your head count uh as we've been asking you over the past several quarters now six quarters

it's been coming down uh what are your hiring plans for the year if you could just throw some light on that so thanks thanks than for your question let me start with the first one uh on the guidance uh the way the way we see uh what's going on in the market and our guidance uh first we had a strong performance in q1 uh on volumes as well as the point that we made on financial services in the US uh second we had a very strong

performance on large deals in q1 which gives us uh more visibility into this financial year uh and third uh we completed the inch acquisition uh which also helps us uh in this in this guidance and J will give some color on the specifics with inch as well on the margins J for you yeah so if you look at uh you know this quarters margins we have already expanded our margins by 100 basis points uh if you look at the put and takes of that uh almost

100 basis points came from you know last quarter's normalization in last quarter we had uh you know oneoff which impacted our margins uh we had 80 basis points coming from Project Maximus which is our margin expansion program uh on the back of you know better pricing which is value based uh selling uh you know better uh better benefits from our efficiency pyramid which is uh utilization Etc and uh you know 40 basis points came from you know one of benefit that we got in this quarter

from one of the clients on Revenue side so those were the positives uh on the headwinds we had you know 1.2% coming from better variable pay and higher leave and other costs resulting in you know almost 1% uh margin expansion for the quarter uh the project Maximus as you know has been you know we working on it for last couple of quarters and it has started showing results our long-term medium-term objective on that is uh to expand margins from where we are uh this year's guidance

continues to remain 20 to 22% uh coming back to your last question on uh on the headcount uh as you know last multiple quarters we have moved to the agile hiring base you know that basically means we hire freshes both on from the campus of the campus uh this quarter we had a 2,000 uh% net decline which is uh you know lower than the previous quarters our our utilization is already at 85% so we have little Headroom now left so you know as we start seeing

uh growth we will look at hiring we are looking at hiring 15 to 20,000 uh freshes this year depending on you know how we see the growth sorry just to follow up on the first uh question when you say the inch acquisition also played a role in upping your guidance could you give us a clear breakup how much of it is coming organically and how much inorganically sure uh so if you look at we don't break up guidance first of all between acquisition and non-acquisition but

if you look at the disclosure that we made when we acquired inch the annual revenue of inch was around 170 million euros right so you can uh in a way back calculate but we don't really break up how much of guidance is between uh you know organic and inorganic thanks Ru the next question is from har Pria suran from NDTV from NDTV profit sir could you give us a broader Sense on the demand environment uh when it comes to other uh regions than uh Americas and

uh what is happening on the pricing bit what has changed since the last quarter what gives you the confidence uh in terms of like upping the the guidance so on the uh I I'll go uh the first point on the demand environment uh in other regions so what we see uh uh which we've continued to see a good growth first sequential growth was good across all all the geographies but we see good good demand in this sort of an environment uh in in the European market

where we've had a good traction and we've also had some of our large deals uh ramping up in that environment uh equally in in what we see uh in the US or the North American Market as well so both of those we seeing good traction on J should also give a little bit more color on on industry uh later and the second Point go ahead sorry what was the second point the second point on the pricing uh so pricing um environment has pretty much remained stable

uh but if you look at you know again one of the pillars of Maximus is value based selling where we've been able to make an impact which has helped us uh you know improving our improve our overall pricing but overall environment has continue to remain stable uh coming to the sectors that salil wanted me to talk about uh if you look at Financial Services as Sal mentioned earlier you know the US Financial Services we have started to see some recovery uh especially in the cards payments

uh you know Capital markets uh areas uh manufacturing continues to remain strong as a sector but you know our our manufacturing growth we expect this year to be lower than the last year because last year we had a very strong uh growth in manufacturing uh retail and URS remains similar to our commentary earlier and Hightech uh you know continues to remain uh uh softer thank you the next question is from Vina Mani from the times of India hi gentlemen um I have few questions uh some

of your peers who had the sort of um same sort of set of numbers you know with some positive growth could give us a uh give us an outline only up to the next quarter you know on what things look like uh what do you think the next few quarters of this financial year would be would you be able to give us um tell us a little bit more about the uh you know how the macro environment is going to be like and the deal environment

is going to be like um secondly I wanted to um ask you about how your internal fulfillment goes igap is a huge thing at infosis so uh would that be a focus uh going on or um or would you again go back to the market and hire uh extensively not just freshers but even uh laterals and the other thing is about uh uh mecham Mish um so you you've called out in your annual reports that the Cy cyber security is not uh as adequate as you

would want it to be uh so are you going to um uh expand that coverage what is it like you're going to be doing on the cyber security front and with the mecham Mish um incident uh does it make it even more uh uh put in for you to add to your cyber security uh cyber security uh measures these are three uh so let me start with the first one on the macro um on the macro I I think the sense we have is the discretionary

spend which is a function of uh macro as it impacts our clients is still the same as what we were seeing in the past quarter with the exception that we saw a little bit better outcome for fin fincial services in the US but otherwise it's the same so it's a discretionary still low from where it was several quarters ago uh now to see beyond so the way we do this like at this time in in the start of Q2 we'll have an Outlook of what we

can see into the environment uh over the next uh few months we we don't have a view which is let's say what will happen at the end of the financial year and so on so that that's how we are seeing it today but as we see as we've done now as we see any changes like what we saw in financial services we we then uh at the end of the quarter come back and and update things on that um on the second point on JP or

the Fulfillment I think the the the view is we've always look at you know fulfillment from what we have as as J shared a utilization is looking at a very good level we will still have fulfillment internally but we will also potentially as as we see the demand have recruitment both on campus and and at other other levels as well um on on Mish I think we issued a statement on uh April uh 8 18 2024 in addition to that uh we we've completed the the

eisc discovery process has been completed and mimish is in the process of coordinating with its clients to ensure all the notifications are provided uh in addition the US uh state attorney generals and insurance Commissioners have also been notified uh that's that's what we can share with respect to Mish thank you Vina the next question is from money control Chandra uh hi hi salil hi Jes um salil you know in terms of business segments uh with the exception of financial services which is seen in um uptake

uh all the other verticals are more or less um you know flat sequentially I think retail has declined um by some basis points so give us a sense of what you're seeing there you've already spoken about how Financial Services looking up and in terms of geography also North America has uh declined sequentially Europe is flat rest of the World is Flat uh but India has seen an uptick so what's driving the you know growth for you is there a specific project um that's helping you um

also you know last month I think during your AGM nand Nik mentioned that you have 225 um uh geni Pro P's right projects so if you can give us a sense of your pipeline uh are you going to be um you know giving us a sense of what the size is because TCS has called out 1.5 billion I think accent Shaw has called out 2 billion will you be quantifying that uh Jes for you um I think utilization has helped um excluding traines it's gone up

by two percentage points you you've also increased offshoring by I think a few uh basis points which has helped your margins so you know will you be utilizing these levers I mean can you sweat these levers more in the next quarter to keep up margins salel finally do you have a view on the uh reservation uh bill that Karnataka moted and now it's paused but is one of the biggest uh companies operating in karnat what's your view on

# Day 55 — 火山引擎 录音文件识别（volc.seedasr.auc）

豆包大模型 ASR，异步接口。可能含识别错误，仅供听力对照。

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Very good evening, everyone, and thank you for joining Infosys's first quarter financial results.

My name is Rishi, and on behalf of Infosys, I'd like to welcome all of you.

As I always do, I request one question from each media house to accommodate everyone over the next hour.

And with that, let me invite our Chief Executive Officer, Mr Salil Parekh, for his opening remarks.

Over to you, Salil.

Thanks, Rishi.

Good afternoon, and thank you all for being here with us today.

We started the financial year with a strong performance in quarter 1 across multiple dimensions, including broad based revenue growth, expansion in operating margin, strong large deal wins and strong cash generation.

Our revenues for the quarter grew 3.6% sequentially and 2.5% year on year in constant currency terms.

I'm particularly pleased with 7.9% growth in the Financial services segment, where we are seeing improvement in client spend in North America.

All geographies and most industry groups grew sequentially.

Volume growth turned positive.

After several quarters, we had another strong quarter of large deal wins with 34 large deals at a total contract value of $4.1 billion.

Our clients see us as a preferred partner of choice in consolidation, cost takeout and efficiency opportunities.

This is also a reflection of our leadership strength.

With the mobilization of our margin program, we see positive impact on operating metrics.

This resulted in our margin expanding by 1 point sequentially.

Free cash flow was highest ever at $1.1 billion.

We continue to see strong traction from our clients for generative AI programs delivered through Topaz.

Enterprises are focused on their own data sets that can be used in generative AI, large language models that create huge impact for them.

Along with our overall robust performance in Q1 and strong opportunity pipeline, we are seeing early signs of improvement in financial services vertical in the US.

While discretionary spends continue to be under pressure, a highly differentiated offerings around driving efficiencies at scale and the transformation capabilities around generative AI have positioned us well in this market.

With respect to our recent acquisition of in tech, we have received the required approvals and have closed the acquisition transaction.

Given our strong performance in Q1 and our current outlook, we have revised our revenue growth guidance for the full financial year to 3% to 4% growth in constant currency terms, our operating margin guidance for the financial year remains at 20% to 22%.

With that, let's go ahead with the questions.

Thank you.

Thank you, Salil.

We will now open the floor for questions.

Joining Salil is Mr Jayesh Sangarajka, Chief Financial Officer, Infosys.

With that, the first question is from Ritu Singh from CNBC TV eighteen.

Hi.

Uh, here Ritu from CNBC.

Thank you for the question.

Uh, you know, huge upgrade in the constant currency revenue guidance, 3 to 4%.

So firstly, while you highlighted in financial services in the US, you're seeing some signs of a pickup, uh, overall, you know, what is your sense on discretionary spend coming back?

Uh, where are the verticals you continue to see weakness?

And was all of this upgrade organic or you know, uh, have some of your past acquisitions that you've now completed had some role to play in this upgrade that we're seeing.

Also, your margins are up about hundred basis points over the previous quarter.

I just wanted to understand, you know, is there headroom for further growth when you're expecting to take the wage hikes, et cetera?

And just one more question if I may, on your head count.

As we've been asking you for the past several quarters now, six quarters, it's been coming down.

What are your hiring plans for the year?

If you could just throw some light on that.

So thanks.

Thanks for your question.

Let me start with the first one on the guidance.

The way, the way we see what's going on in the market and our guidance.

First, we had a strong performance in Q1 on volumes as well as the point that we made on financial services in the US.

Second, we had a very strong performance on large deals in Q1, which gives us more visibility into this financial year.

And third, we completed the Intec acquisition, uh, which also helps us, uh, in this, uh, in this guidance.

And Jayesh will give some color on the specifics with in tech as well on the margins.

Uh, Jayesh for you?

Yeah, so if you look at, uh, you know, this quarter's margins, we have already expanded our margins by hundred basis points.

Uh, if you look at the put and takes of that, uh, almost hundred basis points came from, you know, last quarter's normalization.

Last quarter we had, uh, you know, one off which impacted our margins.

We had 80 basis points coming from Project Maximus, which is our margin expansion program on the back of, you know, better pricing, which is value based selling, you know, better, better benefits from our efficiency pyramid, which is utilization, et cetera.

And you know 40 basis points came from, you know, one of benefit that we got in this quarter from one of the clients on revenue side.

So those were the positives.

On the headwinds, we had, you know, 1.2% coming from better variable pay and higher leave and other costs resulting in, you know, almost 1% margin expansion for the quarter.

The Project Maximus, as you know, has been, you know, we are working on it for last couple of quarters and it has started showing results.

Our long term, medium term objective on that is to expand margins from where we are.

This year's guidance continues to remain 20 to 22%.

Coming back to your last question on, on the headcount, as you know, last multiple quarters, we have moved to the agile hiring base.

You know that basically means we hire freshers both on from the campus, off the campus.

This quarter, we had a 2,000 person net decline, which is, you know, lower than the previous quarters.

Our, our utilization is already at 85%.

So we have little headroom now left.

So you know, as we start seeing uh, growth, we will look at hiring.

We are looking at hiring 15 to 20 thousand, uh, freshers this year depending on, you know, how we see the growth.

Just to follow up on the first, uh, question, when you say the Intec acquisition also played a role in you upping your guidance, could you give us a clear breakup, how much of it is coming organically and how much inorganically?

So if you look at we don't breakup guidance, first of all between acquisition and non acquisition.

But if you look at the disclosure that we made when we acquired Intec, the annual revenue of Intec was around 1 70 million euros, right?

So you can in a way back calculate, but we don't really breakup how much of guidance is between, uh, you know organic and inorganic.

Thanks, Ritu.

The next question is from Haripriya Surebhan from NDTV.

Profit.

Sir, could you give us a broader sense on the demand environment, uh, when it comes to other, uh, regions than America's?

And uh, what is happening on the pricing bit?

What has changed since the last quarter?

What gives you the confidence in terms of like upping the guidance?

So on the, I'll go the first point on the demand environment in other regions.

So what we see, which we've continued to see good growth.

First, sequential growth was good across all, all the geographies.

But we see good, good demand in this sort of an environment in, in the European market where we've had a good traction and we've also had some of our large deals ramping up in that environment equally in in what we see in the US or the North American market as well. So both of those, we're seeing good traction on.

Jeff should also give a little bit more color on, on industry later.

And the second point.

Go ahead, Jeff.

Sorry, what was the second point?

The second point on the pricing.

So pricing environment has pretty much remained stable.

But if you look at, you know, again, one of the pillars of Maximus is value based selling where we've been able to make an impact, which has helped us, uh, you know, improving, uh, improve our overall pricing.

But overall environment has, uh, continued to remain stable.

Uh, coming to the sectors, uh, that Salil, uh, wanted me to talk about, uh, if you look at financial services, as Salil mentioned earlier, you know, the US financial services, we have started to see some recovery.

Uh, especially in the cards, payments, uh, you know, capital markets, uh, areas.

Manufacturing continues to remain strong as a sector.

But, you know, our manufacturing growth we expect this year to be lower than the last year because last year we had a very strong growth in manufacturing, retail and Urs remains similar to our commentary earlier and high tech.

You know, continues to remain softer.

Thank you.

The next question is from Vina Money from the times of India.

Hi, gentlemen.

I have few questions.

Some of your peers who had the same sort of same sort of set of numbers, you know, with some positive growth could give us a give us an outline only up to the next quarter.

You know, on what things look like.

What do you think the next few quarters of this financial year would be?

Would you be able to give us, um, tell us a little bit more about the, uh, you know how, how the macro environment is going to be like and the deal environment is going to be like.

Um, secondly, I wanted to, um, ask you about how your internal fulfillment goes.

Igap is a huge thing at Infosys.

So, uh, would that be a focus, uh, going on or, um, or would you again go back to the market and hire, uh, extensively, not just freshers but even, uh, laterals?

And the other thing is about, uh, uh, make a mesh.

Um, so you've, you've called out in your annual reports that the cycle cybersecurity is not uh, as adequate as you would want it to be.

So are you going to expand that coverage?

What is it like you're going to be doing on the cybersecurity front?

And with the mekamish incident, does it make it even more pertinent for you to add to your cybersecurity measures?

These are three, uh, so let, let me start with the first on the macro.

Um, on the macro I, I think the, the sense we have is the discretionary spend, which is a function of, uh, macro as it impacts our clients is still the same as what we were seeing in the past quarter.

With the exception that we saw a little bit a better outcome for financial services in the US, but otherwise, it's the same.

So it's a discretionary still low from where it was several quarters ago.

Now to see beyond.

So the way we do this, like at this time in in the start of Q2, we'll have an outlook of what we can see into the environment over the next a few months.

We we don't have a view which is, let's say, what will happen at the end of the financial year and so on.

So that that's how we are seeing it today.

But as we see, as we've done now, as we see any changes like what we saw in financial services, we, we then at the end of the quarter come back and, and update things on that.

Um, on the second point on IJP or the fulfillment, I think the, the, the view is we've always look at, you know, fulfillment from what, what we have as, as Jay shared, our utilization is looking at a fairly good level.

We will still have fulfillment internally, but we will also potentially as, as we see the demand, have recruitment both on campus and and at other other levels as well.

On Mccamish, I think we issued a statement on April 8, 18, 2024.

In addition to that, we we've completed the, the e discovery process has been completed and Mccamish is in the process of coordinating with his clients to ensure all the notifications are provided.

In addition, the US State Attorney Generals and insurance commissioners have also been notified.

That's that's what we can share with respect to Mckemish.

Thank you, Vina.

The next question is from money control.

Chandra.

Hi.

Hi, Salil.

Hi, Jayesh.

Salil.

You know, in terms of business segments, with the exception of financial services, which is seen in uptake, all the other verticals are more or less, you know, flat sequentially.

I think retail has declined by some basis points.

So give us a sense of what you're seeing there.

You've already spoken about how financial services looking up.

And in terms of geography also, North America has declined sequentially, Europe is flat, rest of the world is flat, but India has seen an uptick.

So what's driving the, you know, growth for you?

Is there a specific project that's helping you?

Also, you know, last month, I think during your AGM, Nandan Nilkani mentioned that you have 225, uh, Jenny, I POC's right project.

So if you can give us a sense of your pipeline, uh, are you gonna be, uh, you know, giving us a sense of what the size is because TCS has called out 1.5 billion.

I think Accenture has called out 2 billion.

Will you be quantifying that?

Uh, Jayesh, for you?

Um, I think utilization has helped.

Excluding trainees, it's gone up by 2 percentage points.

You've also increased offshoring by I think a few basis points, which has helped your margins.

So you know, will you be utilizing these levers?

I mean, can you sweat these levers more in the next quarter to keep up margins?

Salil, finally, do you have a view on the reservation Bill that Karnataka moted and now it's paused, but as one of the biggest companies operating in Karnataka, what's your view?