Key takeaways of the call

Witnessed continued across offerings, industries and geographies in Q4FY21.CC revenue growth in Q4FY21 was about 9.1%. The growth was led by volume.

Both Transportation and Media and Communications reported another steady quarter of sustained growth while Healthcare business continues to grow faster.

Have seen new customer additions and large deals in all three industry segments in the quarter.

Entering FY22 with the continued confidence of customers in its differentiated capabilities in technology, design and digital, and a strong position in the chosen verticals.

There are many levers for margin expansion like increase in offshore mix, more long term projects, projects with better realisation due to more complexities involved etc apart from Covid related cost savings. However the long-term sustainable PBT margin for the company is only about 22-24% and the company is working hard to improve on that. But the margin for next four quarters will be around FY21 levels.

Salary hike will be from July 2021. And the company to pay Bonus (one month salary) in Q1& Q3.

The company is in the process of expanding SEZ capacity and that will given opportunity to reduce tax rates. Tax rate will be about 25-26%.

Deal pipeline is good but the business of the company is lot depend on the customer budget. Over the years the company got resilient on customer budget issues. It demonstrated its ability to solve it and recover to grow.

Company's design business continues to grow strongly, with improved deal flow and revenues from new deals as well as cross-selling into existing customers for upstream and design-led work.

The company is very confident of long term growth of the transportation vertical even though it si one of the most impacted by Covid. However its still difficult to give short-medium visibility. In transporationvertical both offroad and rail business is not depend on consumer sentiment.

Healthcare – the company is investing in this vertical for over 5 years. So the current double digit growth is fruit of that. The company have multiple year visibility for this vertical and thus it is long term growth story.

Supply side there is pressure as the company is stretched on resources especially at middle and higher levels.

Tata Elxsihas been selected by a leading global automotive OEMfor a multi-year and multi-million USD connected vehicle program for one of their key markets, that will leverage the company's IoT platform. Tata Motors is the first customer for this IoT platform and the company has bagged a deal from another OEM for a geography and that will give an upside and opportunity for other geographies as well going forward.