Revenues grew 6.3% QoQ (7% CC) to USD4.25bn. EBITM declined 10bps QoQ to 23.5% due to salary hikes and other employee interventions, negated by cost optimization.
The intake of large deals was healthy at USD2.5bn in Q3FY22 (43% new), with 25 large deals signed during the quarter. The deal pipeline remains healthy with a good mix of new and renewal deals, offering good revenue visibility.
YoY growth is the highest in the last 11 years (21.5% YoY Constant Currency (CC) growth).
Broad based growth across the verticals, service lines and geographies.
LTM Attrition: 25.5%. Attrition was flat on QoQ basis.
Gross Utilization: 82.7%
Employee: Added 12,450 employees in Q3. Revised the hiring target to 55,000 in FY-22 as compared to 45,000 earlier.
Sequential margin movements: 80 basis points (bps) impact due to compensation hikes and promotions, 40 bps impact due to low utilization, 20 bps improvement due to currency movements, 50 bps improvement due to cost optimization measures and 40 bps improvement due to SG&A (Selling, General & Administration) costs.
Capital Allocation Policy: From FY-2020 it will return 85% of free cash flow cumulatively over the next 5 years via buybacks and dividends.
Digital forms 58.5% of the total revenues. Digital is growing at a very faster rate as compared to the core services.
Guidance: Revised the growth target from 16.5-17.5% to 19.5- 20%.