MphasiS

“On that basis, we are raising our FY27 guidance. We now expect revenue growth in the low double digits for the full year.”

“Our pipeline is at a record, and today we are raising our growth guidance for the year.”

“Net new TCV for Q2 was $466 million. With net new TCV above $400 million for six consecutive quarters, we have established a higher baseline for deal closures.”

“TCV wins were $466 million for the quarter, 66% AI-led, including five large deals, taking trailing-twelve-month TCV to $1.8 billion.”

“As we said last quarter, the trend of shorter-cycle deals is holding, with TCV for deals below $20 million up 26% on a TTM basis.”

“So, are we expecting TCV ramp up in the next two to four quarters? The short answer is yes, because we have to obviously keep the conversion rate as high as it is or higher, and hence that will reflect into some of those deals converting, but large deals by definition are lumpy.”

“When there is a shift in terms of intensity on a TCV basis between long tenure and short tenure, you can do more growth with lesser absolute TCV.”

“From a geographic perspective, Americas continued to be our primary growth engine. It grew 3.1% sequentially and 12.4% YoY in Direct, driven by ramp-ups in large deal wins”

“The Rest of the World delivered strong growth of 16.4% sequentially and 23.5% YoY in constant currency terms. This was led by our growing participation in the GCC ecosystem with our global clients.”

“EMEA declined 3.3% sequentially and 9.0% YoY. As we have explained before, we classify geographies by the origin of contract. This quarter's EMEA numbers reflect revenue from a globally structured engagement that was allocated across regions.”

“From a service line perspective, Enterprise Applications remains our core growth engine and contributed to 75.6% of our revenue. Direct revenue grew 3.7% sequentially and 14.4% YoY in constant currency, driven predominantly by AI-led modernization deals.”

“BPO sustained its momentum, growing 6.6% sequentially and 18.7% YoY in Direct on new deal wins and AI-led propositions.”

“In BFS, it is opening business-process budgets in lending origination, payment exception processing and client onboarding as examples.”

“These budgets sit with business and operations leaders, and this has significantly increased our TAM.”

“Almost every large enterprise is very rapidly focused on building the AI foundations, the AI harness, the AI infrastructure layer that will effectively enable them to adopt AI at scale”

“On the second question around token cost, I think we predicted the token costs will continue to go down. I think they will go down even more.”

“But at this point the conversion seems to be pretty robust and nothing else to call out for in saying that there is a delay.”

“So, if you look at it, we made an acquisition for Tria with TAP and that has certain amortization cost that has come in this year.”

“You're right that we are around 14.8% and we've talked about some of the investments that have really set down.”

“We've seen a big shift in onsite mix. So, some of those have put stretch on margins and frankly, we will have to make those investments for growth.”

“So, I think all-in-all we'll continue to prioritize growth. Margins are something we can absolutely fix because that's more of an optimization exercise that can happen internally, but growth is really what is client dependent and that's where our focus is.”

“But as we accumulate a bunch of these deals and the platform gets deployed and matures in steady state, that's absolutely when the target, the margin tailwind will start showing up.”

“Operating Cash flow generation was USD 34Mn after normalizing USD 39.5Mn of remittances initiated on 30th September and received in October.”

“a normalized basis have gone up by about 10 days. If you look at it between Q1 and Q2. So, in many ways that is disappointing and we are trying to get that back.”

“But right now, at least I think it's fair to assume that it will be lower in FY28 than in FY27.”

“And our commentary is such that, for FY28 we will go back to our historic levels of cash flow generation.”

“We've done $900 million plus of net new TCV in H1. I don't think any of those deals really had a material kind of cash flow investment.”

“We have our first set of deployments going live as we speak. Remember we launched the platform in May.”

“Not seen very often of almost $39 million initiated on 30th, some challenge which is coming with value date of 30th but hitting our bank account on 1st. That's actually a pretty anomaly, event.”

“Logistics and Transportation declined 12.0% sequentially, on a smaller base. It continues to feel some impact from ongoing geopolitical uncertainty.”

“And of course, those kind of deals are highly competitive because everyone, especially the large players are very happy to use their balance sheet to drive some of those deal structuring cycles. We have to obviously be very, very cautious in how far we go.”

“Historically we've seen about 2% kind of impact at an organization level of furlough. That's really been what we've seen. Right now, as we stand, we have no reason to believe it's going to be different this year.”

“Of course, decision cycles are not easy especially for long term deals given the fair amount of complexity our clients are dealing with when it comes to making those decisions in the uncertainty - there's a fair amount of AI noise and the speed of change also scares the customer from committing.”

“In the Direct business, we grew 3.5% sequentially and 11.3% year-over-year in constant currency terms.”

“On a TTM basis, our Top 5 clients grew 15.1% YoY, and our Top 10 grew 13.0% YoY. Our Top 11–20 clients grew faster, at 22.7% YoY.”

“Q2 EBIT margin remained flat. EPS increased 14.6% sequentially to INR 29.4.”

“But all I will tell you is that it is not just one client, it's a multiple number of customers and they are across verticals.”

“We are investing in people to run this: certifying our client-facing technology leaders on the value-stream playbooks and expanding deployment capacity through our FDE team.”