TCV (Total Contract Value) of $2.2 billion includes 13 large services deal and one significant product deal across Telecom, Life Sciences and Healthcare, Manufacturing, and other verticals.
15,000+ employees in smaller cities in India, what they call as New Vistas locations. This has helped to address talent demand as well as provide flexibility during the pandemic waves.
They are in the process of expanding these New Vistas footprint to Romania, Costa Rica and Philippines.
Dividend Payout policy: To increase the dividend payout policy now to not less than 75% of net income cumulatively over a period of five years including this fiscal ’22 right up to fiscal ’26.
Incentive plan for employees: Evolving the existing ongoing long-term incentive plan and replacing a portion of the cash based LTI (Long term incentive) plan, with the Restricted Share Units (RSUs). So, what is currently a 100% cash award plan, will move to a mix of 70% cash which is continuing to be performance-led as usual and the 30% tenure-based will be converted to RSUs at the market price on the date of the grant. This incentive plan will need the shareholders’ approval.
RSUs: No dilution for the shareholders because it will be bought from the secondary market. Also, no extra cost will be incurred because it is in lieu of the cash LTI.
EBIT margin for services is pretty much flat on a quarter-to-quarter basis; it was 19% last quarter; it is 18.9% this quarter. Impact of 5 basis points due to the forex fluctuations.
Revenue guidance of double-digit and margin guidance of 19%-21% for the year.
Huge seasonality in the product business which is really not dependent on people and headcount. Q3 is the strongest quarter for the products business.
Revenue per employee affected because the realization rates at offshore are significantly lower and during the pandemic period significant onsite employees were added to offshore.
New licenses: Large part gets recognized in the quarter it is booked and a small part gets converted into an annuity stream, for the same year and for the next year it will come in as a subscription revenue.
