good day and welcome to Vio limited Q4 fy2 24 earnings conference call as a reminder all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes should you need assistance during the conference call please signal an operator by pressing start then zero on your Touchstone phone please note that this conference is being recorded I now hand the conference over to Mr deep Bor senior vice president corporate Treasurer and investor relations thank you and over to you sir thank you yashashri uh warm welcome to a quarter 4 Financial year 24 earnings call we'll begin the call with the business highlights and overview by uh Mr Shas Bala our chief executive officer and managing director followed by updates on financial overview by our CFO a a uh afterwards the operator will open the bridge for Q&A with our management team in this call we also have our chro Mr s go on the call before Shen starts let me draw your attention to the fact that during this call we may make certain forward-looking statement within the meaning of private Securities litigation Reform Act 1995 these statements are based on management current expectations and are associated with uncertainities and risk which may cause the actual results to differ materially from those expect Ed the uncertainities and risk factors are explained in our detailed filing with the SEC Vio does not undertake any obligation to update the forward-looking statements to reflect events and circumstances after the date of filing the conference call will be archived and a transcript will be available on our website with that I would like to hand over the call to S thank you thank you deep thank you Deepak good evening and good morning everyone thank you for being here today I'm honored to be here as a CEO of this remarkable organization my memories of joining vipro in February 1992 straight from the Indian of science campus are still fresh in my mind I've been with vpro for more than 30 years I'm proud to say that it's such a unique company the way it has combined profits and purpose we're a strong Global brand present in over 60 countries leading in technology and committed to sustainability diversity and inclusivity as you know I've been in the Coo's role for about 2 weeks now through internal and external conversations and the Press reports have read I am aware of the high expectations for my role despite my extensive experience as a business leader stepping into the CEO's role for the first time feels profound especially when it comes to Leading this iconic institution as I go through the many emotions of this transition one thing stays strong my unwavering belief in vipro our values our people our clients and over all our resilience last year posed big challenges for the whole industry it has affected weo performance too the economic environment is still uncertain and there might be more challenges in the short term however the opportunity before us is Limitless we are on the brink of a major technological shift every client I talk to across all Industries is eager to leverage AI to shape the future of their business and at vipro we have been gearing up for this moment we have made substantial Investments to strengthen our capabilities across the organization we have a global and diverse team we have made bold moves in m& acquiring companies like Capco and Rising which have boosted our Consulting capabilities and we have simplified our operating model the building blocks are firmly in place and I'm committed to expanding on this even more while I remain optimistic about the long-term it's important to be transparent there's still a con amount of work ahead of us our immediate priority is to accelerate growth before diving into the financial performance for Q4 and the F year I want to discuss the Five Focus areas we will concentrate to revitalize the company one accelerate large deal momentum by working closely with clients and partners two strengthen relationships with large clients and partners and further invest in accounts that have the potential to grow into large accounts three focus on industry specific offerings and Business Solutions led by Consulting and infused with AI fourth we will continue to build talented scale which is now ai ready and able to deliver industry specific Business Solutions and finally continue to simplify our operating model and focus on execution rigor with speed as you see the core tenants of our strategy remain unchanged what's important is how we build on these five priorities and adapt as necessary to accommodate technological shifts and market conditions my years of experience in the markets have taught me that integrating strategy with rigorous execution yields tangible results and that's where our Focus will remain this year now let me turn to our financial performance for quarter 4 and the financial year ending march 2024 in Q4 Our IT services Revenue grew sequentially by .1% in reported currency if you recall last quarter we had talked about seeing green shoots in our Consulting business the traction continued in quar 4 reflected in capco's sequential Revenue growing by 6.6% and auto bookings growing by 43.6% now talking of order bookings in quarter 4 total order bookings stood at $3.6 billion and for the full year it was $14.9 billion coming to large deals in Q4 we won 18 large large deals against 14 large deals in the previous quarter in tcv terms our large deal bookings for qu 4 was $1.2 billion for financial year 2024 we recorded large deal bookings tcv of $4.6 billion this was a growth of 17.4% as compared to the previous year for excuse me for our fi 24 our Revenue was $10.8 billion in reported currency we continue to increase the percentage of revenue from our top five and top 10 clients also we added three more clients with the 100 million plus dollar bracket in fi4 six out of her top 10 accounts grew on a sequential as well as on a year-on basis in quarter 4 moving on to margins in quarter 4 we saw a further expansion to 16.4% this is a 40 basis points improvement over last quarter we closed f524 with a margin of 16 .1% and expansion of 50 basis points or fi23 like I said earlier we will continue to make investments in building capabilities and strategic Acquisitions in Q4 we took a majority share in ag a leading Consulting and manage manage services company serving the insurance and insure tech industry this allows us to strengthen our value proposition in a fast growing part of the insurance vertical expanding on our substantial investments in AI in qu 4 we launch the Vio Enterprise artificial intelligence ready platform with IBM it's a new service that will allow clients to create Enterprise level fully integrated and customized eii environments let me share one example of a v in qu 4 that came from an AI powered solution tailored to our consumer business a leading Global apparel brand chose Vio as its strategic partner to implement gen solutions for driving their digital transformation this actually involves implementing large language models to improve search recommendation engines and enable hyper personalization at scale all done responsibly before I hand it over to aera let me share our guidance for q1 we are guiding for a sequential growth of minus 1.5 5% to plus. 5% in constant currency for q125 we expect margins to stay range bound like in the last few quarters you know the next few months will be crucial as we steer the company towards growth as a passionate hiker I deeply connect with these words from zunko T the first woman to climb Mount Everest he said even it is hard you can reach the peak if you climb step by step of course I seek the trust and continued support of all of you our clients our ass Associates partners and media as we move forward thank you let me now hand it over to AA to share more details on our financial performance over to you AA thank you shi good evening and good morning everyone let me highlight to you our financial performance for Q4 and full year ending March 31st 2024 on it Services revenue for Q4 we delivered a reported currency growth of 0.1% sequentially and minus 0.3% in constant currency terms for the full year for the financial year 24 IT services Revenue declined 3.8% year on year in reported currency terms and 4.4% year on year in Conant currency term let me also give you some color on our Market unit performance please note that all revenue growth numbers are in constant currency terms in America as one we continued our momentum of strong booking in Q4 we booked eight large deals in Q4 adding up to a total toal contract value of 587 million for the You full year order bookings in tcv terms in A1 grew by 24.9% quar for revenue for this Market declined 1.8% on sequential basis while the full year revenues grew 0.2% year on year our Healthcare sector grew by 18% in full year in fi 24 year on y America's two Market unit grew 1.9% quarter on quarter on the back of strong performance in Capco bfsi high-tech and Canada sectors on a full year basis the revenue in this market declined by 6.1% year on year almost 60% of our revenues in this market comes from the bfsi sector and as shini mentioned in his speech we are starting to see a return to stability in the sector led by Capco in Europe Revenue decreased 0.1% sequentially in Q4 and decreased by 7% on a full year bases while Germany and UK continue to remain impacted due to slowdown in demand environment we are seeing a recovery in sectors like Switzerland and southern Europe that grew 1.7 and 1.6% in Q4 southern Europe as a sector grew 14.6% year on year in f24 we also continue to see strong traction on the order booking side in Europe in Q4 we've won five large deals and adding to a tcv of more than $300 million apia revenues decline 2.2% quarter on quarter and 4.5% for the full year our strategy in apia has to be has been to move towards high value transformation projects and reduce low margin accounts the success of our strategy is reflecting in our margin Improvement of 235 basis points for the full year in terms of IT services operating margins are continued rigor on improving oper ational Excellence has helped us expand our operating margins by 40 basis points in Q4 this is after absorbing the impact of two additional months of salary increase in Q4 on a full year basis our margins at are at 16.1% they've improved by 50 basis points year on year our net income and EPS for the quarter increased by 5.2% despite being impacted by a challenging macroeconomic environment it is encouraging to note that our EPS for the full year grew by 0.8% the increase in EPS was after absorbing the onetime restructuring charges of INR 6.8 billion during the year we generated cash flow of $626 million in Q4 and 2.1 billion for the full year which is at 182.5 of our net income in Q4 and 15 59% of our net income on a f year basis this is our highest cash flow in recent years our gross cash as a result is at $4.9 billion and net cash was at 3.2 billion both have increased year onye despite completing our larges by back in July of 2023 in terms of some other important metrics that we've always shared our ETR is at 24.5% for fi 24 versus 23% in fi23 our Hedges continue to be in line with our policy we had about 3.1 billion of Forex derivative contracts as Hedges at the end of Q4 finally I would like to reiterate the guidance for q125 stated by sheni we expect our revenues from IT services business segment to be in the range of 2.61 7 billion to$ 2.67 billion this translates through a sequential guidance of minus 1.5% sequential to a plus 0.5% in constant currency terms with that I now hand over to the operator for question thank you very much we will now begin the question and answer session anyone who wishes to ask a question may press star And1 on their touchone telephone if you wish to remove yourself from the question Q you may press St and two participants are requested to use handsets while asking a question ladies and gentlemen we will wait for a moment while the question Q assembles we'll take our first question from the line of Moshe kri from red bush Securities please go ahead perfect perfect sty congrats on your uh Your Role here um looking at the Five Focus areas that you mentioned you know I'm going to look maybe at three of them large deal momentum what needs to get done to get there are you talking about restructuring sales um sector specific offerings led by Consulting in AI are we talking about more strategically using Capco given their expertise and then you talk about simp simplifying the operating model are we planning a a structuring it in terms of the various segments of the business thank you Mo appreciate your question let me answer the the in terms of the structure and operating model um I said we will continue to simplify our operating model but the focus actually will be more on the execution rigor and with speed uh that was the key message Moshe now coming to the large deals uh we want to create this large deal momentum and one of the things that we want to do is be more more proactive with our clients and with our partners and the second part of I think the question that you said is you know we we want to go very specific with the specific Business Solutions both on the cost transformation side and also on the business transformation side which is a lot more industry focused with Consulting lead and AI infused I think that's how we want to differentiate our large deals going in forward okay and then um final question here C can you um Talk a bit about how you're planning to use Capco I think you have a very unique asset that wha has not leveraged efficiently enough in the past since the transaction so what's going to be different here under your leadership that wh with cap go down the road thanks a lot thank you you know Consulting um for us is going to be a strategic advantage and Capco plays a significant ific role here as you said mhin now there are a couple of things that we want to do with Capco Capco for us in the context of bfsi is going to be tip of the spear for us so what we want to look at is an end to end from a Consulting L to execution the entire story is what we want to take to our clients and we are getting a lot of good traction as we speak there are there are places where the clients find it very interesting that you know is a consulting company can actually execute and manage the the end to end process areas for them so we will continue to collaborate much stronger in front of the clients you know both liing capos capabilities and it's it is going to be a very strategic Advantage for us thank you best of luck thank you thank you we have our next question from the line of abishek Kumar from JM Financial please go ahead yeah hi um thanks for taking my question uh J congratulations on the elevation um my first question is uh on Capco uh growth you mentioned uh you saw bothal growth and strong booking I'm just trying to reconcile this with you know the comments that we hear about discretionary spend especially in DSi uh remains sluggish uh so you know what explains strength in cap maybe if we can highlight certain areas where uh Capo uh is is been uh deals uh that's my first question so your your observation right abishek uh in the last two consecutive quarters we have had a sequential growth both in order book and uh revenues I think what we are seeing is in the Ware sectors these are green shoots we have seen some of the discretionary spend coming to us in the you know in the context of Consulting the second part is also where wherever we are leading in with the Capco as know tip of the spear here for us we're getting that Advantage uh around the deals that we are working on and there's a lot of synergy deals that we are working together uh going forward so that's an know advantage that we want to leverage and that's a differentiation we want to do um going forward okay maybe I take follow up on this um then uh you know given the strength here um and bfsi stabilizing we just wondering why this is not translating into you know slightly better guidance for next year you know at midpoint we still see decline uh you know sequentially so what explains uh you know a slightly weaker guidance that you want so uh hi abishek uh just wanted to uh share with you that the overall demand environment uh we don't see a material change I think it's very similar to how we saw it at the beginning of this calendar year so the macroeconomic environment and the challeng around SL discretionary spend remains what we've shared is that we are seeing green shoots in Capco uh in the set of the portfolio of clients that Capco works with we are beginning to see some kind of stabilization and the growth uh that Capco has shown in quarter 4 and is very encouraging as far as q1 is concerned this they are continuing to have stability now this is coming in after a few very rough quarters for Capco so you should read it in that context abishek okay uh overall guidance visibility of course the green shoots of healthcare and Capco are part of it but also the overall macroeconomic environment and um the uh softness is also very much a part of it so this is what we uh have guided based on what is visible to us now and uh that's it maybe one quick last question I just noticed a sharp uptick you the top client Revenue this quarter you know anything to read into this is it one off um what explains with the sharp increas in top C thank you you know abishek you would recall uh sometime in Q2 I think we had shared that uh in a couple of our large accounts we had one uh bookings that aggregated to about half a billion dollars each right now one of those clients is actually uh gone ahead and become our top client so we're very pleased to share with you that our top client is now um uh a different one that what we've had for several um years and we very happy with the progress that we've made and uh that's what we you would like to share that's why you're seeing the moment abishek just to add a few more color to that our large steel pipeline continues to be strong and uh it does consist of Mega deals as well we are also well positioned to sustain and further improve our large deal and mega deal WIS going forward sure that's very helpful thank you and good luck thank you thank you thank you we have our next question from the line of Ravi Menan from mcquary please go ahead thank you swe congratulations on the new role wishing you the best uh you know uh I guess the first question is on the top 10 you've seen not just a top client but even the top two to five that has been growth uh your bfsi is actually seeing pretty strong growth as well uh look at it healthare also seems to be doing well so what uh the ones that are actually not doing well seem to be relatively smaller segments like Communications or uh you Hightech could you give some on whether the weakness in these segments uh is the reason why you're still looking at mut growth outl for next quarter uh and should we expect that in your biggest verticals you're actually seeing growth um thank thanks RI maybe I will ask upper nut you know to give some color to that yeah so so RI uh yes uh you know this quarter for us in terms of bfsi we've seen a quarter on quarter sequential growth after um you know uh at least four quarters of uh being very soft Healthcare has continued to do well and we will continue to see the momentum build on WE very happy with both our positioning offerings and and the kind of growth that we are seeing in that sector enu and Manufacturing um the we do believe that uh it's been soft for wh and uh you know there is some muscle to be built we have a good pipeline we have interesting deals in the uh uh pray and we'll see how they convert more hopeful of getting back to growth in the second half in these sectors you know consumer and Life Sciences again you know uh it continues to be impacted by uh you know the uh overall spend environment going to you know higher inflation and as a result you know that's that those are the broad colors that we wanted to share with you from a sector perspective and therefore it's a little bit of a mixed bag so yes we are seeing green shoots and uh you know uh we will see we seeing early signs of stability because now we've had two quarters where we've consistently seen uh not just Consulting but uh other parts of bfsi uh coming around but uh very early to say whether this is deterministically Shifting right so we continue to remain cautious in that space um we've shared with you an Outlook that basically has components of everything that I've just uh taken you through thank govern and you know the utilization number at 84.8% this exclude you know all the Acquisitions right so how should we think about where say for example cap course utilization might be should that be of mod than laor if the uh bfsi demand comes back uh certainly uh we don't share our utilization including some of the acquired entities that is correct uh overall utilization even outside of the acquired entities has been uh you know we've seen a very remarkable progress that we've made over the last uh four to five quarters in that uh L we're very happy with where we are and we hope to sustain it even as the demand comes back and uh maybe we will have to invest for uh growth uh at some point in time but for now we will try and hold to that utilization uh in Capco certainly that is a lib and uh you know we've got an incredible asset like shini said uh we have to uh drive more Synergy winds and uh you know basically press on the revenue acceleration in Capco and that should do uh um you know a lot of good to the margins as well thanks so much and best of luck thank you we have a next question from the line of calit saluja from Kodak please go ahead yeah hi thank you uh here shy uh many congratulations uh on your elevation uh to see your role I have three questions for you shy uh the first one is the fact that you you have been with the organization for more than three decades and you I've been quite a remarkable performer uh you know however you cannot say the same thing for whpr uh organization as a whole uh so what in your view or your you know what is your assessment uh for the reasons for with proo challenges and aspects of a pro business that require a fix thanks Canal J I think um thanks for the compliment as well uh having been here for three decades uh I all all I can say is that uh if we continue to focus on those key five five key priority areas that I called you called out just now and definitely execute that right with the speed and the record that we need to bring in uh I think we can make a difference um so to me uh strategy with a combination of execution is what can give us the uh outcomes that we are looking for the second part conver in the recent past you know as a weo as an organization we have high exposure to uh discretionary spending and hence you know we we have sometimes the softness on bfsi uh in during those periods and that could be another Factor you know that uh you you would have seen us grow a little slower okay so you basically think that there's nothing wrong is just those uh portfolio challenges uh Etc uh those tactical challenges uh uh which are there uh uh you know and just a simple focus on execution would do the trick so so if you look at it the way we are structured we've got the four markets right and each of the markets are different they have a different uh responses to the envir macro environment that we're looking at uh is so that's number one second is uh if you look at vipo as a company right in the last few years we've gone through significant transformation and for a transformation like this sometimes you know we have to make some adjustments across the organization and and this can lead to uh different views I think from my perspective my vantage point right my knowledge of our clients and our business and of course the point that you made having the lifelong connections across our company uh should help us uh you know move more into actually actions quickly converge it that's what I'm looking for okay uh that's fair uh the second question that I had shy is that uh uh your organization has seen PL of churn uh you know senior executive churn uh so what are the measures that he will put in place to reduce the John Z sure K maybe I'll ask S to respond to that K you know I must tell you that the last two weeks when sh has taken over and there general you know Euphoria among employees that somebody who started his career in the company has reached the very top uh you so I generally believe that if growth comes back opportunities are there for people to grow they're seeing people growing a as another example for us who started a career people are will be keen and to continue to see that this is the place for them to make their careers you know so that's what they having said that as sh called out that structures and strategy are not changing but leadership will involv there living organization there will be some people who would you know move and kind of stuff but there's no major disruption in the way we would work organize ourselves so I don't see that much of a challenge as we move forward and kit you know we want to we want to develop Talent internally and right and also have a strong line of leaders uh in our in our Pipeline and that's that's another Focus area for us uh going forward okay uh the final question that I have uh uh uh for you shr is that uh I remember sometime in 2020 uh uh you uh had a magic wand you actually struck fairly nice lucrative two Mega in the retail vertical but uh the organization has been silent on Mega since uh uh you know uh uh has the muscle memory weakened on the mega days or uh you know good news around the corner a good question Canal jit I think uh the way we we had structured uh uh ourselves in terms of going after the large deals and mega deals is to try and focus on not only on know how you pursue a deal but how do you originate a deal how do you shape the deal and the entire process around that so that becomes very critical for us so you know in fact uh what um I would like to do is uh for the the sales team on the ground across the markets and across the industries try and create a proactive pipeline because that becomes very critical for us because you work along with the client and the partner in a deal Pursuit right you know the probability of winning is also much higher so we what we want to do what I want the team to do is stay focused on those proactive deals as we as we move forward also you know if you look at uh know earlier know we had mentioned in Q2 that we had one to close to half a billion dollar deals uh in two of our large accounts and one of the two accounts conv now has gone on to become one of the largest customers largest client for Vio so that we know we've seen that momentum also happen yeah that's true okay uh I mean you have been very patient with me so I'll just you know squeeze in one large question so please don't mind uh on finally on Capco uh I guess Theory's view of Capco integration was a light tou integration keep that as a separate organization uh do you uh agree with that approach and you know would that approach continue or you would see uh uh you know much tighter integration of Capco with we Pro's overall portfolio so so k j I think U keeping the Capco brand as you know as is is a strategic business but what is more important kit is I look at Capco or any of our Consulting business domain and Consulting teams to be the tip of the iceberg for us right so when you go in front of a client you go in as one Vio in the context of how we are going to solution it but what's very important is the kind of kind of sexo connects Capco has I think that's something that rest of the wh organization can actually leverage so I would say that you know we going to focus on a joint positioning and building know disciplined sales campaign that can deliver the best for the Vio in that particular segment okay fantastic thank you and thanks a lot for enaging me thank you thank you we have our next question from the line of G Ria from Morgan Stanley please go ahead hi thank you for taking my question um many congratulations shini on your new role uh my first question is again with respect to uh your success in mega deals uh when you look at the overall internal uh you know when your mega deal participation your win rates where do you think the work in progress is there where do you thing is you need to you know make some changes is it more about your participation and uh or is it more about you know your win rates just trying to understand that uh what needs to be fixed to be able to participate more in the mea deals so uh G you know if you could just repeat the question I just lost you for a minute sorry yeah my question is with respect to your mega deal success just trying to understand is it uh is is this is this require more fixing on the participation side proactively creating pipeline side or is it more about the win rates you participate but the win rates are not so good just trying to understand uh what requires to be changed to be able to uh you know more consistently deliver some of the mega deals so thank you I got I got a question I think uh you know absolutely there are two parts to it what is important for us is to be very proactive uh within the Market whether it's our clients or Partners or the influencers in in actually sourcing the sourcing the these deals and then kind of shaping the deals which are very specific to those you know Industries the way you solution it and the way the business objectives of the clients are met also becomes very critical so it's both It's a combination of both which actually lead lead will lead us to a better win ratio uh going forward and I've seen the experiences wherever we have worked very well with the clients and ahead of the curve I think you know our probability of winning has gone up what we want to do is become lot more consistent lot more repetitive across our markets and across our Industries all right my second question is with respect to Capco uh it'll be great to understand what kind of deals are coming in terms of nature of the work and is it more broad paced across large number of clients is it more concentrated with a few clients is it just uh tip of The Spar engagement that is coming right now is it also involving some amount of Downstream work uh probably that will help us in getting some comfort in uh how sustainable uh this trend that you are seeing is thank you no absolutely G I think you know there are two ways the two two opportunity sets that we have with Capco one is Capco going on its own doing consulting work for them which is which is lot more a different buyer within the that particular organization but what what we are focused on is the Synergy deals with the Capco being the tip of the sphere and helping us in the downstream because that is where we can actually win a lot more large deals than Mega deals Now using Capco we have an advantage in terms of shaping the deal because you know you can be a lot more focused you know in the context of the customer process areas and the customers business problem that we are trying to solve and then put the downstream Revenue which could be either a cost transformation or it could be a a business transformation G and the recent success that you've seen in the last two quarters is it uh more again on the Synergy deals that you have seen uh things coming back or is it uh you know more independent work of CCO that is being seeing some success it's it's both G up uh you know certainly it is secular uh we are seeing a secular optic across the service offerings of Capco across geography um you know and it is Led uh it's it's more broad-based also we're winning good Synergy deals and the collaboration has only increased in the last four quarters uh given the macro economic environment and the fact that you know the the re were harder to come by we've certainly built the muscle on Synergy also a lot better both are coming into play all it thank you last question from me uh AA how to look at the conversion of uh net income into operating cash flow on a sustainable basis I know this has been a fantastic year for Vio but uh going forward more on a sustainable basis uh what should be the right way to look at it thank you as you know if you look at just our historical performance we've always been between what like 85 to 110% of uh free cash flows is what we generate uh as a percentage of nature income and that's a good number to Target uh yes I think fi 24 was a very good year for us in terms of free cash flow generation and we'll continue to work on all fronts thank you all the best thank you we have a next question from the line of Kumar Rakesh from BNP paraba please go ahead hi good evening thank you for taking my question my first question was sh you talked about large deal acceleration uh while understand that Mega deals haven't been around a lot but large deal performance have been quite fairly good over the last 2 years from what used to be about 600 million on an average two years back now you have been consistently doing about 1.1 billion or quarterly large deals uh but that has not been reflecting into stronger growth so when you talk about that you plan to work on large deal acceleration what does that mean and how should that translate into growth so couple of things one is when I say large deal acceleration uh Kumar you know the idea here is that obviously you got to have a lot more deals in the pipeline uh so there again I know I feel I'm my ask is that we have to be proactive on those large deals what that means is Can you shape the deal even before the deal comes out right and this you can obviously do with many many of your large clients where you have a very strong relationships so that's number one so second is the size of the deal and the frequency of the deals if you can you know slightly increase that can give us a momentum going forward now in terms of converting the large deal um deal tcvs to revenue maybe I'll ask AA to make a comment yeah so uh Rakesh uh this is again you know something that I I I think not just us but uh it's just the nature of the market that you know the conversion is lower it is because a while we continue to win these deals and replenish the bucket there is a discretionary spend environment which is Weighing on our Revenue performance right so we are continuing to see uh ramp Downs that are happening where existing projects finish but are not getting replenished at the same pace so that is again weighing down in terms of the conversion from bookings to revenue and I think that's I think the major aspect also what has happened is while the momentum is much stronger on the large deals and the larger deals the smaller deals boyancy has certainly uh you know slowed down and you know at Le in the last four quarters we seeing that so that those are two things that are weighing on the revenues thanks for that uh my second question was around the number of clients less than 1 million so for the last few quarters we have been pruning our smaller accounts uh smaller clients but then this quarter on a sequential basis it has increased so is this oneof or there's a change in strategy now how we are looking at these smaller accounts there's no change in strategy uh you know Rakesh I think we continue to our our strategy is only got more firm we are looking for profitable growth and we will continue to Pivot ourselves in a in a few geographies where we are doing um you know we're not in high value transformative work that in New Age opportunities that we want to be we would like to privott our service offerings and in that context we did take actions especially in apnea as a case in point I spoke about it so what you're seeing uh quarter on quarter can we manage it you know it there will be volatility that will play out quarter on quarter but I can assure you there's no fundamental shift in strategy we will continue to focus on profitable growth and um you know mind deeper so ra I just add two more points to that one is I think it's not just the number of the accounts but the quality of the accounts we have which is very important for us going forward uh second is uh you know if you look at our we have continued to add accounts in 100 to know greater than $100 million bucket and know in fact we added three three three accounts uh in that particular bracket so that's another one you know we want to keep tracking and keep moving got it and that's very helpful and all the best streaming thank you we have our next question from the line of yogesh Agarwal from HS Securities and capital markets please go ahead yeah hi uh uh thanks um uh uh Shen first of all congratulations on your promotion just couple of questions I have uh firstly on the structure few years back under Theory uh Vio moved to the geographic structure which was a bit of a unique setup compared to other company so are you looking to go back to the vertical structure uh just any thoughts on that and then I have a followup please yeah thanks yogesh uh I think uh the four strategic Market units that we have and the four gpls structure that we have it will continue uh no plans to make any changes uh yogesh right right and the second thing uh shini I mean your head count continues to decline it's down like 10% and 87% utilization so this uh sometimes get a feeling uh are you guys even looking at any kind of a imminent pickup in growth uh because uh this is quite a bit of tightening uh operational tightening happening so you guys s here you know head count has come down uh it was driven by operational efficiency as you see our utilization has been alltime high in Q4 uh we have uh the supply side you know as demand picks up you'll be able to quickly ramp up and we are comfortable on that spot so I don't see that as a challenge we just have learned you know I think we and the industry that all of us over hired at a point of time you know this postco so we just want to be more cautious more judicious and you know as we move forward but as demand environment improves we don't see a challenge thank you so much thank you the next question is from the line of sud Gali from kotak MRA AMC please go ahead uh hi shini uh congrats and all the best on your news uh given that the organization had already gone through sweeping changes over the previous two to three years uh certain change fatigue would have set inside the company and employees so do you see that change fatigue as a bottleneck to be able to make any incremental changes you need and turn around the growth path or maybe delay that growth turnaround Sunil the I have is I've been through this transformation Journey right uh in the last four years uh clearly in my mind we don't need a structural change the four smus and the four gbls is good to go what we need is to change our strategic priorities which meets the market dynamics which meets the changing technology landscape and what we need is bringing lot more execution rigor in the markets and the in the in the sectors and in specific accounts that we call both the large accounts of us and also the future large accounts I think if you can execute to that bringing in the you know best of our Solutions with a Consulting lead and AI infused I think we can know differentiate and make a difference to our clients sure sh a second question to aper and Capco uh if the growth here is so strong one would have anticipated that the company level margin expansion to be slightly higher given this is an on-site heavy and fixed cost heavy business so should we assume that such an operating leverage will probably come come with some amount of a lag yeah you know um so s uh you know Capco like I said had also the benefit of a seasonally fur low quarter of Q3 so the bounce back of Q4 the uh growth rat that he talking about also have it was AED by that okay there's a base effect to that two yes as the stability returns we will see operating leverage but for now we just waiting you know this is not something you know we we've shared with you for two quarters uh given the um interest in cap Co performance we've shared it uh we are also encouraged we watching it's too early to say whether this is a very definitive deterministic Trend we will watch for how they perform over the next few quarters and certainly the operating leverage should play out with a lag and thank you so much and all the best thank you the next question is from the line of s sha from Equus Securities please go ahead yeah thanks thanks for the opportunity and should me congratulations and all the best my question is related to one of the questions asked by a previous participant uh most of your earlier colleagues in a CEO ra has also highlighted and focused in terms of a rigor on execution but somewhere that has not worked then improved the organic growth rates of vro consistently so what according to you in your past three decades experience in vpro is going wrong in the execution Tri is it delivery is it sales is it C mining or is it hunting and uh where you believe weakness is higher and how you plan to rectify that thanks sandip what what I'm doing right now as we speak is you know based on my own experiences over the the period of uh years second I'm looking at know all the areas across the markets what's working and what's not working whether it's to do with large deals whether it's to do with L large accounts and account growths whether to do with the solutions and approach to each of the sectors so what I'm doing siip is you know taking a stock of all that while I called out the priorities right you know we got to bring the Strategic priorities that we called all out to an execution riger and you are right I know once you have the right strategy right set of accounts right right set of sectors that you really want to focus focus on then you have to be staying there for time too because some of these deals that you know we have won it does take time so what I want to do is have the stay staying power as well to continue to execute your strategy and not change it in Midway so then we have to bring in lot more consistency and perseverance if you will uh to win those deals and grow those accounts and if you want to define a performance kpi of your targets and strategy execution what it could be and what could be the timeline for this so uh I I don't think I have know timelines in s this is my second week in my new job let me go back and see what's it what's going on and what we need to do but what what I'm very clear is you know what are the priorities that we want to execute and I think you know that's where I'm going to stay focused on okay okay and second in terms of capital allocation I thinko has done a fantastic job in terms of e cash flow generation uh the outgoing coo has been aggressive in terms of bold m&a where Capital allocation has been also fairly contributed towards the sizable m&as do you believe in that strategy because in the press conference you also said with will continue to remain bold on the m&a So when you say bold on the m&a is it bold in terms of acquiring capability which may not be big in terms of size or you still believe we have a Headroom and appetite to go for m& similar to cap as well as rising I think from an m&a standpoint uh you know and I'll I'll ask answer and then I'll let shrini we in uh I think we will continue to remain focused we will uh be selective in the m&a that we do we will invest in areas of newer Tech Technologies we will invest in areas that give us access to markets access to clients uh you know uh the strategy on m&a and where we will play and how selective we will be remain on the size of the m&a it's to uh you know we you know we don't not disclosing any one way uh you know we said that we prefer tens because in some sense it helps us stabilize uh in an environment like this but uh we will remain flexible on that and we will see what works best for our strategy on Capital allocation uh you know there's no change to policy sandep uh we are committed to returning cash of 45 to 55% of our net income over the cumulative three-year period if you want to add anything sh I think you covered it thanks okay thanks thanks yeah go ahead and the last question AP for you in terms of margins I think we have done well in terms of a difficult environment but if I look at utilization if I look at offshore Revenue mix fixed price contribution most of them has peaked out so is it fair to assume now further uh considerable margin Improvement is largely dependent on growth picking up if it doesn't then in that scenario 16% flattish kind of an environment is uh uh sustain going forward so uh what we' have shared for now is that we uh committed to remaining in a narrow band The Range range bound between what we've delivered in the last few quarters and uh you're right that utilization has improved considerably our offshoring has gone up all of that has resulted in our margins expansion we happy and pleased about that we need to sustain that as we go along there are enough more levers for us to flex as we go forward um rotation internal fulfillment uh there's a lot more that we can do on optimizing um you know perhaps uh you know GNA and uh especially given that you know there are synergies to be driven uh as we integrate our acquired entities deeper right so some of those levers will play out for us uh spp productivity is a very big lever we are all very focused on it and the potential of how we can you know we an AI there is plenty of opportunity and there is plenty of um uh plenty of levers for us to work on uh those are my comments and okay thanks thanks and all the best thank you ladies and gentlemen that was the last question for today I would now like to hand the conference back to to Mr Deepa Bora for closing comments over to you sir yeah thank you ass thank you all for joining the call in case we could not take any questions due to time constraint uh please feel free to reach out to the investor relations team thank you so much again and have a nice evening thank you members of the management team on behalf of Vio limited that concludes this conference thank you for joining us and you may now disconnect your lines