Key takeaways of the call

Double digit QoQ revenue growth was purely volume led as the company continue to execute strongly. About 90% of sequential growth was volume led.

Factors that drove growth: demand for core transformation, market share gains and strong revenue conversion.

Usually Q3 would have the impact of furloughs but there was not much this time therefore was able to book strong revenue.

Back to pre covid growth momentum.

The growth led by volume and not by any one time IP revenue. Infact IP revenue for the quarter is lower than last quarter.

Healthcare business continues to accelerate, while Media and Communications reported another strong quarter of sustained growth. The company have seen new customer additions and large deals in both industries in the quarter.

Seeing sustained recovery in the automotive market for the second consecutive quarter. This quarter has seen OEMs reinitiating key R&D programs, leading to resumption of projects as well as deals with Tier1 suppliers. The company have added new automotive customers including a new age OEM in North America.

The company have also closed some large deals including a multi-million dollar deal with a European Tier1 supplier for vehicle electronics and software, and a North American Tier1 supplier for autonomous driving.

The growth in design business has been equally satisfying. Customers are now recognizing the value of integrated design and product engineering offerings of the company to support innovation and enhanced customer experience, across verticals.

The company have also closed a large deal with a leading global technology company.

Entering the fourth quarter and a new year with the reinforced confidence of a strong deal pipeline across markets and industries, and capabilities in product engineering, design and digital that make offerings of the company more relevant and its market position stronger than ever before.

Utilization rate and certain pricing arrangements for offshore billing have aided margins. Would be in this margin band but difficult to comment during such unusual times (somewhere between 22-30%).

Utilisation was at about 95% in Q3FY21. Offshore mix for the quarter was at 67.8%. The company hope to be in the corridor of 56-57% in terms of offshore mix.

Average deal durations have increased from 6-12 months previously to 12 months+ now

Expect adjacencies of current business (such as Off -highway and truck in Transportation and Pharma in Lifesciences and Healthcare) to work as key growth drivers over the next 3-5 years.

Top client outlook: will exit Q4 with a bang in top client

Exited semi-conductor business and currently has only very small legacy business in this space. Otherwise not pushing this space

Cater to Supply boxes, Pay-tv operators (airtel, tata sky), and studio and broadcast channels in Media. Expect latter 2 to grow and former to become stagnant eventually.

Key deal wins: Added a new age automotive OEM in North America, for software and vehicle electronics development; A leading European Tier1 automotive supplier awarded a multi-million USD deal for vehicle electronics and software; A leading US based OTT technology company selected Tata Elxsi's FalconEye test automation solution;

Tata Elxsi was selected by a North America headquartered medical device company, as a strategic supplier for regulatory compliance and development services. A leading global technology company selected Tata Elxsi for a multi-million USD research and design project. A leading North American Tier1 automotive supplier selected Tata Elxsi for a new program in autonomous driving technology.

Pretty bullish about continuity of growth momentum considering order win and order pipeline. The company has never been this healthy in terms of order or order pipeline.