The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Kumar Rakesh - BNP Paribas, Research Division - Analyst
: Congratulations, especially on great deal wins during the quarter. My first question was around the margins. So we had set our aspiration band
about 26%. In the current context of the supply-side constraint, especially for FY '23, how do we see that aspirational band panning out? And what
are the headwinds and tailwinds we are looking at immediately in the next few quarters?
Question: Kumar Rakesh - BNP Paribas, Research Division - Analyst
: And how would the on-site wage hike impacts? And how are we handling that, given that now we'd be ramping up the on-site as well with the
travel resuming? How would be the wage hikes on the on-site side? And how are we looking to mitigate that impact?
Question: Kumar Rakesh - BNP Paribas, Research Division - Analyst
: One clarification. So early this month, we had announced a large material deal went from a large [mapping] company. So this quarter, the deal
which we have announced of $11.6 billion, so that includes that? Or $11.3 billion includes that or...
Question: Ravi Menon - Macquarie Research - Analyst
: Gentlemen, congratulations on a pretty good quarter of very strong bookings and your extremely strong employee addition.
First, I want to understand, during Q4 -- typically in Q3, you have furloughs and lower number of working days with a lot of holidays and before,
you really get the benefit of that despite fewer days in the quarter. And this time, I think we have not really seen that. In fact, absolute incremental
revenue has declined compared to what we had in Q3. So what are the headwinds? Do we not have any furloughs in Q3, and usual seasonality,
therefore, does not apply?
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APRIL 11, 2022 / 2:30PM, TCS.NS - Q4 2022 Tata Consultancy Services Ltd Earnings Call
Question: Ravi Menon - Macquarie Research - Analyst
: And then in Europe, we had a slight revenue decline in absolute terms. So I think you mentioned in your first comment about the deal and so post
[BaNCS]. Is there anything else -- do you have any programs put on pause by clients because of the war situation in Ukraine? Or anything else that
you see as temporary? Or is there anything that we should be concerned about?
Question: Ravi Menon - Macquarie Research - Analyst
: And last question from my side. You've got now 14.3% Y-o-Y growth in constant currency terms, but your headcount's up maybe 21.3% Y-o-Y. NGS
speak about utilization, sort of training, something as that -- but the trainings you would have...
Question: Ravi Menon - Macquarie Research - Analyst
: Yes, sorry. In the first number, FY '22, the trainees you onboarded, I would assume have been largely deployed, if not wholly deployed. Sorry, why
this large gap between the employee addition and revenue growth? If you'd -- should we say that this is just capacity that's built up because of
the attrition and preparing for better growth? So you're not really short of people? Are we just playing safe?
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