Niranjan Chintam – Chairman & Whole Time Director addressed the call.

Highlights of the call:

The company continues to maintain steady momentum with a strong pipeline and multi-year wins.

Its deep domain knowledge and innovative approach has helped to drive more wins and proud recognitions in the industry thus giving a huge leg-up over peers.

It continues to focus on organic over inorganic growth this year.

Strategic investments in new-age technologies and people have started bearing fruit.

Quarter sales grew 14% yoy and 16% for the six months. The management said it's better to view the performance on yoy/annual basis.

It does not see any pressure on margins due to competition. Quarter margins were impacted due to hiring. 

It added 16 new customer. It was the best quarter in terms of client addition. Some of the clients are Marquee names and are in IoT space. Except one Indian client (which is in education space) all are foreign clients. Currently they are a  million $ clients but HV strong possibility of becoming 5-10 million $ clients over a period of time. Since the company's focus is on IoT it was happy that most of them were from the IoT space.

The average realisation rate was same as previous quarter and so there was no material impact of currency fluctuations on sales and profits.

Cost of material consumed soared because it had to purchase hardware for a $ 5 million order it received.

It was one of the best quarters in the last few quarters in terms of client acquisition.

The company's Digital sales are flat qoq while the big players are showing sharp growth. The management said that since 70% of it's sales are already from the digital, the qoq growth looks less on the other hand big companies have just ventured in to digital and so their growth looks sharp. It's more appropriate to look at yoy performance and not qoq. The company has been growing aggressively in the past. It is undergoing some restructuring for the next big gain.

Regarding pledged shares it said that the company had taken loan from a small US bank when they were a small company. The collateral and guarantee were very strict. Thus the management had to pledge their shares. In India one can give real estate or personal guarantee as collateral but not in US.

Debt grew by just one million $ compared to March 2018 but looks like it has grown sharply because of huge strengthening of the dollar.

Debtor days is at 78. Industry debtor days stand at 90. So it's doing better than the industry.

The larger the customer the longest it takes to collect money from them. Debtor days for Novartis is 80 days while that of Idea is 70. 

Challenge is to hire new talents, retain them for a long time and keep them updated with latest technologies.

In Q2 Europe accounted for 11.2% of sales, US for 82%, India for 6.5% and rest came from others.

Europe business is poised to grow. Many of the new customers added during the quarter are from Europe.

The management is excited about prospects in Europe.