00:00Mr. Vijayakumar, that lack lost to performance, how do you turn it around?
00:06Actually, we've had a fantastic quarter. I don't think you got the numbers right.
00:10The margin difference was due to a one-time cost due to the labor code impact.
00:18Otherwise, we've had a very, very strong quarter, 4.2% sequential growth.
00:24Our margins expanded. We had exceptional bookings. And we've also increased our revenue guidance, both on the services and the total company guidance.
00:35So in terms of how you accelerate the business from here, what would be the strategy of the next 12 months?
00:44I think right now, we believe we've had a strong booking.
00:49We had a $3 billion booking, which was almost a 45% increase year-on-year and a 17% increase on a quarter-on-quarter.
00:58And we see a good pipeline and we will continue to win more.
01:02And our wins are all based on the investments that we've made in AI, building certain IPs,
01:09which really make all the LLMs and the intelligence layer much more scalable and applicable within an enterprise context.
01:18So we signed a mega deal with a global retailer, which is close to $500 million.
01:25This is really transforming all their application landscape, using AI as the primary lever, using our AI Force 2.0 agenting platform,
01:37and really changing the operating model to really benefit significantly from AI.
01:42So we believe there will be more such opportunities across our coverage universe to go after in this year.
01:52In terms of those mega deals, are you anticipating more in the next 12, 24 months?
01:57Are you in conversations?
02:00Yes, of course.
02:01I mean, mega deals are not very predictable.
02:04Sometimes you might have it in a quarter.
02:06It might not be there in the next quarter.
02:08But if you take the next 12 to 24 months, we definitely expect a few of them.
02:15How about your AI partnerships with the likes of Hyperscalers?
02:19What are you anticipating?
02:22We've had very strong partnerships with all the Hyperscalers.
02:25We are one of the first service providers, global system integrators, to become a partner with OpenAI.
02:33We've had a very strong relationship with NVIDIA.
02:35In fact, we were mentioned in the NVIDIA keynote in CES just last week as one of the leading partners in robotics and physical AI.
02:48So I think creating these partnerships and creating solutions around these technologies is going to be a very important success criteria for us to scale our AI business.
02:59These are such challenging times, especially geopolitically.
03:05What macro environment, what client behaviors might push your guidance to the lower end of what you have revealed to the market?
03:14We have only one quarter to go.
03:17So, I mean, we believe we will deliver within the guidance midpoint or even better than that.
03:26That's really what we are expecting.
03:29But we always factor in a pessimistic scenario or an optimistic scenario.
03:33So you don't know what is in store.
03:36There's a lot of volatility across multiple areas across the world.
03:40So that's why we factor in pessimistic and optimistic.
03:44Pessimistic at the lower end and optimistic at the higher end.
03:47And given the optimism, how is that shaping your thinking on hiring plans?
03:53Are you adapting?
03:55And where exactly are you hoping to perhaps, you know, focus your headcount?
03:59Could that be AI?
03:59Could that be cloud?
04:00Could that be cybersecurity?
04:02All of that, whatever you mentioned, cloud, cybersecurity, data, AI, all of these are areas of focus for continuing to add talent.
04:13Over the last 12 months, we've added about 6,000 people.
04:17Our revenue growth is still higher than our people count growth.
04:22That is a trend we are going to see for some time because there is AI-led productivity, amplification of human potential using AI.
04:30All of that will translate into higher and higher revenue per employee as we grow our business model.
04:36We will see some amount of non-linearity kicking in as well.
04:40So is there a number you can, you know, share with us in terms of the headcount that you're looking at?
04:47We've not called out any specific headcount additions.
04:51It's very dependent on every quarter we plan, and we also have a lot of internal talent whom we upskill and deploy them on new projects.
05:01We have a good, fresher pipeline.
05:03Our fresher talent almost increased 40% year-on-year from 24 to 25.
05:09So we have multiple fulfillment channels which will drive our overall fulfillment strategy.
05:16Are hiring plans contingent on the H-1B visa regime?
05:23Are you looking at nearshoring, onshoring of talent as a result of what the U.S. is doing in terms of H-1B visas?
05:31Over a long period of time, we've really reduced our H-1B dependence to almost negligible numbers.
05:38So I don't think it has any specific change in strategy.
05:44We will have a lot more, continue to have a lot of local hiring in different geographies, including the U.S.
05:51And there are certain nearshore centers which we use for certain specific services and time zone perspective, which will continue to scale as we grow our business.
06:04Of course, we're keeping tracks on geopolitical developments.
06:09Do you see that as a risk to your business, given that, you know, clients may be reluctant to spend as a result of the uncertainties?
06:17Yes, of course. Geopolitics is a risk for every business in every corner of the world today.
06:25And we are no exception. I think definitely that's something we have to constantly watch out.
06:31But at the same time, we have to look ahead and see how you can add value to our clients.
06:36And that's where our business momentum continues to be strong.
06:40So how much clarity then are you seeing from your customers, from your clients in terms of the spending?
06:47Because that is a reflection of the confidence they have in their business.
06:53Yeah, I think 2026 budgets and visibility, all of that is still early days.
06:59We don't have great visibility across a number of customers.
07:03But we think the tech spend is going to be a very important component that will help clients to really transform their businesses.
07:12So I think I do believe tech spend will continue to increase because it's so pivotal for every large enterprises, sustenance, transformation, growth, all of that.
07:24So I think that's where the confidence comes from.
07:26Fundamentally, there's going to be a lot more tech spend.
07:29Sometimes it is on hardware, software, but all of that very quickly translates to some services to make these technologies work for our clients.
07:38So on that, go ahead.
07:42Right. Talk to us about that tech spend.
07:44What are you seeing?
07:46Who's spending more on the investments in technology right now?
07:50I think the biggest spender is the technology companies, the top 10 companies who are hyperscalers and some of the top compute and semiconductor firms.
08:03That's where the largest spends are happening.
08:05And we are really helping them in various areas, which is translating to good services revenue streams for us.
08:13For a company with a global footprint, how are you assessing the weakness of the Indian rupee and what impact is that having on your business?
08:25Yes, of course, it does help a little bit on the margins because a significant part of our cost base is in India.
08:36So I think it does help our business to be more competitive.
08:40Why do you think the Indian rupee is so weak when growth is in excess of 7% among the fastest growing economies in the world?
08:52I don't have a ready answer for that.
08:55Maybe you should ask an economist.
08:58I'm just wondering how businesses look at the weakness of the currency.
09:03Do you have views on the upcoming budget?
09:05What are you hoping to see?
09:06How do you think tech companies in India can benefit from it?
09:11Yeah, I think overall, the government of India has been extremely supportive of growing businesses, especially export-oriented businesses,
09:21as well as a lot of domestic business models are significantly transforming.
09:27I'm sure they will continue to have a very positive and supporting kind of policies as we see through the budget this year.
09:36But what policies and what incentives might help tech companies like HCL Tech?
09:44We're not specifically looking for any specific incentives.
09:48But, of course, the biggest ingredient in our business is the talent.
09:52And anything the government can do to help get better talent out of the colleges who can be readily deployed into the workforce is what will greatly help.
10:08And I know that's one of the very big focus areas for the government as well.
10:12And one of the concerns for India as a whole is the lack of deal between the U.S. and India on trade.
10:21How concerned are you that India has struggled to secure a trade deal with the U.S.
10:26and the implications on the Indian economy as well as businesses?
10:30Yeah, like everybody, I also expect, we do expect and we hope this gets resolved.
10:39Beyond that, I know only as much as what you can read in the media and all of that.
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