Key takeaways of the call.

Entering the second quarter with a strong order book and a healthy deal pipeline across key markets and industries.

The company benefited by deep mining of its existing customers especially top 5/10 customers. Even covid affect the customers globally pivoted by its mature offshore capability, the company in last few quarters focused on creating sustainable and long term engagement allowing a higher degree of predictability and order book as it progress from one quarter to another. Equally the company is focused on addition of quality new customers led by solutions and design less digital engagement.

Industrial Design & Visualization (IDV) grew by 13.9% QoQ (11.8%QoQ in CC terms) and 132.1% YoY (128%YoY in CC terms). System Integration & Support (SIS) de-grew by 15.7% QoQ CC terms and reported a growth of 13% YoY in CC terms.

Embedded Product Design (EPD), the company's largest division grew by 7.5% QoQ (6.3%QoQ in CC terms) and 31.4% YoY (29.5%YoY in CC terms) and the growth was broad based across all verticals within it. Within EPD, the Healthcare grew by 18.5% QoQ in CC terms and jump by 83.1% YoY in CC terms. And that of transportation grew by 2.2% QoQ in CC terms and up by 17.8% YoY in CC terms. Likewise that of Media & communications grew by 6.7% QoQ in CC terms and up by 29% YoY in CC terms.

Healthcare business continues to grow strongly, while both Transportation and Media and Communications reported another quarter of sustained growth.

The company is seeing sustained recovery in the automotive market for the third consecutive quarter. When covid hit all the competitors both domestic and international in automotive vertical have register sharp dip but the company manage to outperform the competition in automotive vertical. It has reported a growth in Q1FY22.

It have also won large and strategic deals with both OEMs and suppliers in EV and autonomous technologies, underscoring its technology and engineering leadership. This is reflected in both the industry and geography growth the company have reported in the quarter.

The company is also participant to some of switchover programmes the automotive customers adopt during this tough times.

Offshore share in revenue mix stood at 72.6% (27.4% onshore) in Q1FY22 up from 63.1% in Q1FY21 and 70.1% in Q4FY21. Once the travel resumes, the onsite number will definitely increase but that will not reach the pre covid levels.

The company have also won strategic deals in digital health, OTT and video platform development, which reflect on its ability to support the product and technology transformation agendas of customers in its key verticals.

The company has effected a salary/wage hike of about 7-8% effective from July 1, 2021.

Q1FY22 Margin (adjusted for one time employee expense accounted during the quarter) was is in-line with Q4FY21 numbers and the company is comfortable with Q1FY22 margin and that is what it will focus on. PBT of Q1FY22 factors in the additional Rs 33 crore of employee expenses on account of the special one-time bonus for all its employees. This is first instalment of one month salary to be paid as bonus to employees and second instalment to be paid in Q3FY22. This was as stated in the Q4FY21 conference call.

Employee attrition in Q1Fy22 stood increased to 10.2% from 7.4% in Q4FY21. The company have seen attrition rates of 15% earlier also and have managed that successfully to sustain growth. The company have built a certain kind of culture and that will help the company to attract/retain talent and grow. The company will take appropriate action to retain/attract talent to sustain growth.

The company is talking to lot of Indian customers including Tata Motors as far as EV is concerned.

In automobile space, five of top 10 OEMs and eight of top 20 suppliers are customers of the company.

Top client of the company is currently from media & entertainment vertical.

ER&D space is looked at by all the big IT players and they are always and will be a competition. This is not new.

Top 5 have seen strong growth. Relationship with top 5/10 customers is taken care since the start of the COVID pandemic. Because of the all the efforts to be with the customers during tough time the company is better placed to mine and that helped the company to deliver strong growth now.

Doing every-thing to keep up the growth momentum. Today the company have very good order book, which will ensure growth in short term.

The company is building capacity to execute the order book it have and cater to the order pipeline. This reflects the confidence of the company.