Wipro Limited

I will share with you the details of our annual results, as well as our fourth quarter performance. I will share highlights of our sectors, markets, and service offerings, and also an overview of the demand environment. And finally, our business outlook for the quarters ahead. And then we will open the floor for any questions you may have for us, okay? So we closed fiscal year 2023 with the strongest ever bookings recorded in a year. Our bookings in total contract value terms grew over 28% year on year. We finished the year with two consecutive quarters of total booking of over 4.1 billion U.S. dollars. Our revenue grew 11.5% year-on-year in constant currency terms, putting our full year revenue at $11.2 billion. Our operating margin for the year was 15.7%. Cash conversion was at 115% of net income versus 91% in the previous year. Our transformation journey continued in fiscal year 23. We made several strategic investments and acquisitions and added new capabilities. Whether it is our account strategy, large deal approach, or our sector and market mix, there's a clear and obvious difference between the Wipro pre-2020 and the Wipro of today. Our top accounts are bigger in size, We have a more diversified pipeline. And we continue to make bold investments in talent to support our future growth. Now, coming to Wipro's performance in the fourth quarter. Total bookings for the quarter were 4.1 billion US dollar. In total contract value term, quarterly bookings grew by 47% year-on-year in the America's One strategic market unit and by 33% year-on-year in Europe. Revenue for the fourth quarter was up by 6.5% year-on-year in constant currency terms. Sequentially, revenue declined by 0.6%. mainly due to the uncertainty in the market and the resulting slowdown in discretionary spending. Our operating margin for the quarter was 16.3%. That is 60% basis point higher than the full year margin of 15.7%. Our IT services profit was also highest ever in absolute terms. Our COO team under Amit has brought in new rigor to the way we approach operations, enhancing delivery, client experiences, and efficiencies. And we're already seeing the impact. Our utilization rates improved to 81.7% in Q4 from 79.7% in the previous quarter. Earnings per share, or EPS, expanded for the third consecutive quarter. We reported EPS of rupees 5.61 for the quarter. Now, turning to our sectoral performance, all four of our strategic market units recorded over 10% in revenue growth for the full year in fiscal year 23. In Americas 1, revenue grew 6% in Q4, 13% for the full year Growth was led by healthcare and medical devices at 10%, followed by consumer goods and life science at 8%. The Americas, too, market grew 4% year-on-year in Q4 and 10% for the full year. Energy and utilities revenue grew 8% during the quarter. Securities, capital markets, insurance grew 7% during the quarter.

When you first met K-12, our commitment was to help you get where you want to be. With K-12 Power Schools, your future is yours to create. Congratulations, graduates.

So you want to know where to invest $1,000 right now? Well, forget about stocks, real estate, or cryptocurrency. There is a little known trend taking America by storm right now called digital real estate. And digital real estate creates online assets that have the potential to generate income and grow in value over time, just like physical real estate. In fact, it's one of the easiest ways for regular Americans to take advantage of this emerging industry. So you want to know how you can get started with digital real estate? We'll stick around for the next 60 seconds, and I will show you how. Hi, my name is Jeff Lerner, and I did not become a multimillionaire the traditional way. I didn't work 40 years for the man, didn't invent anything, definitely didn't inherit a trust fund or win the lottery. But what I did do is take advantage of digital real estate. And since then, I've generated over $80 million, been on the Inc. 5000 list twice, won a bunch of other awards, and most importantly to me, I've helped tens of thousands of other people learn about digital real estate. Now, for the first time ever, I'm sharing how you can unlock the secrets of digital real estate and create an awesome life all inside a super simple short book called The Millionaire Shortcut. And I'm not going to do this forever, but for right now, it is 100% free. No catch, no shipping costs, and no credit card required. And I'll send this right to your email and you can download it instantly. So click the link on your screen right now. Go to my website and enter your email to download your free copy. This book is less than 20 pages. You can be reading it in the next five minutes and you'll be done in the next hour. And I promise it's going to be the most powerful book that you'll ever read on how it can be possible to take advantage of digital real estate and create your legacy in this new economy. Did you know that every single day in America, according to Forbes magazine, there are over 1,700 new millionaires created? And it is more than double that across the globe. People are becoming millionaires now faster and easier than ever before. But how do they do it? And more importantly, can an average American do it too? Well, that's exactly what you're going to learn about in this book. Plus, after you get the book, I'm going to give you access to a free bonus video training that shows you exactly how I build digital real estate as well as the blueprint for how you can apply it in your life. So you'll definitely want to make sure you watch that entire video. So with that said, click the link on your screen, enter your email address, and I will send you a free copy of the book right away. Plus, you'll get the free bonus training on how to apply all of this to your life.

And we are seeing some softness in the banking and financial services space and in consulting due to the current macro environment. Bookings, in terms of total contract value, grew 27% year-on-year in Q4. These are all year-on-year comparison figures, of course, to be clear. Our Europe market unit delivered a year-on-year revenue growth of 9% in Q4 and 12% for the full year. Growth in Europe... was led by Southern Europe and Germany, which grew over 30% and 20% in Q4 respectively. Finally, revenues for the Apmea Market Unit grew at 8% EUR in Q4 and 10% for the full year. Southeast Asia grew above 25% EUR, and Middle East is growing in double digits as well. For the full year, Bookings in total contract value terms are looking healthy with 20% year-on-year growth. We also have ambitious growth plans for India. In fact, we have significantly improved our quality of revenues in our state-run enterprise segment over the last couple of years. With that, we decided to merge that segment with our IT services segment starting Q1 24. Now, from a service offering standpoint, our ID's global business line grew 7% year-on-year in Q4 and 14% for the full year. Most of the service lines showed a healthy year-on-year revenue growth led by cloud transformation, which grew 22% year-on-year, and apps and data, which grew 18% year-on-year. Our ICO global business line grew by 6% year-on-year in Q4 and 8% in fiscal year 23. Digital operations and platform led the growth with 7% year-on-year for the quarter. against a weakening macro environment. Our results underscore, I would say, the efficiency and the effectiveness of our transformation and growth strategy, and how far we've come in just under three years. Well, we're not only winning at a higher rate in the market, but the nature of the deals we are winning is changing. Today, we have 19 hundred million dollar accounts, compared to 11 in fiscal year 2021. We are winning large transformation deals, benefiting from the consolidation in the marketplace, and expanding our relationship with existing clients. As an example, we expanded our long-term relationship with a multinational insurance company through a strategic transformation initiative. The growth-oriented initiative will enhance customer experience, simplify and digitize operations, and lower the cost to serve as part of a 10-year partnership. In another example now, Wipro was selected by a leading global professional staffing services provider to help them transform into a shared services product platform operating model. The new operating model will help accelerate the simplification of technology, applications, infrastructure, and risk management, leveraging cloud as a key enabler for business scalability, but also for agility. In many of these wins, we're bringing one-way product capabilities together in brand new and innovative ways, including introducing a product platform mindset but also combining experience platform and operations to drive business outcomes. Further, as market conditions soften, we are deploying advanced technologies to help clients better manage cost and anticipate risks. We're building resiliency and efficiency for our clients' businesses. For example, We have been selected by our leading North American financial institutions as a strategic partner for their data as a service platform to accelerate their cloud migration. We will leverage our data analytics, our artificial intelligence accelerators to expedite this journey and bring cost benefits. Our partnership strategy is yielding good results as well, as we continue to build capabilities jointly with our strategic partners and drive large, complex deals. The share of partner bookings as a percentage of our total bookings rose from 25% in fiscal year 20 to 44% in fiscal year 23. We believe our new organizational model of four strategic market units and four global business lines, so four by four, will further improve our market position. Organizing around our strategic priorities areas, cloud, enterprise technology, engineering, consulting, will give us the agility to adapt to changing market

At Amica, we provide you with something more than auto, home, or life insurance. It's empathy.

I'm so glad you're okay. Thank you.

Don't worry. I'm here to help you through this. Thank you.

Because at Amica, your coverage always comes with compassion.

conditions and innovate even faster we profile strike cloud is a significant growth driver for us you know that now as a dedicated global business line it will accelerate growth innovate with partners and clients and deliver on the promise of cloud via differentiated futuristic capabilities Now, our new enterprise future in global business line will combine our enterprise technology platforms and enable digital operations and security. Imagine, by leveraging data and artificial intelligences, as well as immersive technologies, this GBL will build a distinctly forward-looking view into our clients' operational and technology needs. Let me now turn to our most important assets, our people. In a highly dynamic business and technology environment, building the right skills across our organization is more important than ever. Over the past year, we've trained over 50,000 employees in demand-driven skills. Next Gen Associates, the formerly called Freshers, continue to be a critical part of our talent strategy. By the way, the renaming of this group of colleagues is a reflection of their value to our business and of our commitment to their success. We hired, in fiscal year 23, over 22,000 next-gen associates, highest ever in our history. Our talent transformation efforts are yielding results in Q4. We were recognized by Top Employers Institute as a 2023 top employer in 11 countries and securing a top three ranking in five of those countries. Our attrition rate has been steadily declining throughout fiscal year 23. We ended the quarter with 14.1% of attrition. Looking ahead, we believe the macro environment will remain challenging. Our clients, our industry, many sectors are impacted by the prolonged uncertainty in the economic environment. These end winds are impacting our business and projections as well. For the next quarter, we are giving a sequential guidance of minus three to minus 1% in constant currency. On margins now, we expect to be in the similar range that we delivered in recent quarters. To summarize fiscal year 23, one, we closed the year with the strongest ever bookings recorded in a year. Second, our revenue grew 11.5% in constant currency terms, taking our full year revenue to 11.2 billion dollars. Third, our IT services operating profit is the highest ever at 1.7 billion US dollars for the year. So by most accounts, we've closed our fiscal year at a significantly improved place than where we began. We're getting stronger operationally, taking more futuristic approach to our solutions, We have the growth mindset and the right organizational structure and the talent giving us the resiliency for long-term success. With that, let me turn it over to Jatin for his comments. Jatin.

Thank you, Thierry, and good afternoon, good evening, good morning, all those who are viewing us. Let me start with our growth for the year. FY23, we delivered 11.5% growth. Our operating profit grew year-on-year 1.2%. Our net income for this quarter was 30.7 billion Indian rupees and was 0.7% sequentially. Our cash conversion throughout the year was very good. Our operating cash flows were 115% of our net income. At the end of the year, we had $4.9 billion of cash, gross of debt, and $3.1 billion net of cash. We also had $3.8 billion of hedges. The realization rate in quarter four was 81.63 for $1 to a rupee. As all of you have read it, the board has approved, subject to shareholder approval, a buyback for 12,000 crores Indian rupees. plus taxes will make it around 14,800 Indian rupees, which collectively is around $1.8 billion. This buyback would be at a price of Rs. 4.45 per share. I also want to talk about the last thing on ISRE, as Theri mentioned in his speech. From this fiscal, it is part of IT services. Until last fiscal, it was not. So the guidance that we have delivered, what we are told about and we have delivered is excluding ISRE. But the guidance we have given for quarter one includes ISRE and it has been baseline both for quarter four and quarter one. So minus three to minus one percent is inclusive. It is computed in a way it is there in the base for quarter four and it has been considered for quarter one. So these were the brief comments on financials, and we'll be very happy to take your questions from you.

A CRM shouldn't let customers slip through the cracks. It should connect them to your teams. A CRM shouldn't leave you in the dark. It should deliver insights clear as day. Get started with HubSpot CRM for free.

Please introduce yourself and go ahead and ask your questions. We'll take the first question from Ritu, CNBC. Please go ahead.

Hi, I'm Ritu from CNBC. You know, the first question, of course, is on your guidance, constant currency terms of minus 3 to minus 1%. I just wanted to understand what have you baked in in terms of macroeconomic uncertainties, you know, client sentiments to give this kind of a weak guidance. Secondly, when you say you're seeing softness in BFSI, et cetera, what is your exposure towards some of these affected banks in the U.S. and European markets? What's the sort of feedback there? And even in terms of your deal pipelines, what's in the pipeline and are you seeing delays and closures? What are you hearing on that front? And if you could share your hiring plans for this year for freshers.

All right. I'll try to remember all the questions. Okay. So first of all, what do we see in the market? You asked our perception of the market. The last two quarters, we've delivered record performance in bookings. So what does it mean? There are deals in the business. We've seen plenty of opportunities, and we are winning them. So actually, the volume of business and activity is good from that standpoint, and we are winning. Second, do we see a slowdown in decision-making? Not really. I don't think we are seeing it. I think I don't see change, I don't see radical change of pattern in the deal cycles. Third, what do we see in the market We see that, you know, while there is a good activity happening, as I said, leading to this record booking growth, there's also a slowdown in discretionary spend. And that is, you know, visible in particular in some industries like banking, financial services, and technology. And final, You know, I would not necessarily comment on clients. We never do that on specific clients. But I would say that we are not particularly impacted by any one single client in the way we have integrated our projection for Q1. It's more a sector slowed down based on the uncertainty that we are seeing and a stop to some discretionary spend.

Please speak into the mic, Ritu.

Sorry. On the hiring plans as well, and then your aspirational 17% margins, because you just said that for FY24 as well, you'd be in a similar range.

Okay. So, Abhi, you want to take the one on hiring?

Hiring... As you know, the demand environment is active, and we will continue to hire basis demand. I also want to share, and Amit will share in more detail, that our inventory today, we have scope for improved utilization. So you have to look at our entire supply chain when you look at the entire hiring as well as utilization together. So in that context, as the business comes back and we see the growth, we'll continue to hire across.

No, we don't. But we continue to hire. We continue to hire. Now, obviously, I would say the attrition has reduced, so it has, you know, one aspect. And second, we've hired a lot of next-gen associates, and that we can now, you know, leverage in our organization.

We'll take the next question from Hari Priya. Hi, Hari Priya from Money Control. The first one, you spoke about the demand environment. Wanted to understand if there were any cancellations or sort of ramp-downs that you were seeing. Also, with regard to your customer size distribution, are the deal sizes getting smaller? Like, you don't see larger deals, but you're seeing more of, like, say, the 5 million, 10 million kind of deals. What was behind the headcount decline? Headcount has declined for the second quarter. You're about 1,800 down this quarter.

uh what was behind it and what will the variable be yeah i'll take that one and then you'll you'll you'll you'll supplement me uh so you know it's there's always frankly a little bit of a danger in looking at the evolution of an account on the quarterly basis if you remember maybe three four quarters ago we had done a large increase of headcount and lowering our utilization, impacting our margin, if you remember, but knowing well that we would need them for the following quarters. And throughout the quarters, we train them, we onboard in them, and make sure that they join our programs. So that's what we've done. And so if you look at the evolution of the headcount, you know, on a given quarter, you might not necessarily see this impact. The reality is that if you look at our... existing, we will continue to hire. There is a demand. We are growing in some areas on some specific skills where there's very high demand, and we need to continue to hire. At the same time, attrition is going down, so we need to take into that account. And finally, the fact that with our level of utilization, which has improved over the last quarters, We see also that there's some room for improvement. So, you know, that's all the different components that we are looking at together, not one individually. Okay? Deal size. I don't think we are seeing a reduction of the deal size. I think we have signed more large deals this quarter than ever. Is it? More than ever. If I'm not wrong, four deals over $100 million, 15 over...

As you age, your world is getting smaller.

You lose your friends, your family move away, so you don't have that connection that people need. Working with Comcast, we've had teens spending time with the seniors, teaching them how to access the internet. This is just a life-changing moment for my group of seniors, and I'm so happy to be able to do that.

You know, as large yields, I mean, so performance on large yield has been really solid. So, no, we are not seeing a reduction of size. Actually, possibly the opposite. We are seeing more large yields in our pipeline, and we are on it. Well, so REMDONs happen. This is what I was calling out by saying, you know, slow down in discretionary spend. So this is materializing in REMDON when suddenly a client decides to reduce this discretionary spend. Any cancellation? No.

We'll take the next question from Hari Priya of Hindu Business Line.

Hi. Hi, Theory. You mentioned about softness in BFSI. I just wanted to understand if there are any other verticals that you're seeing softness in, the NCPG. And, Jatin, I think so far the share buyback has happened after a long while, and that was because previously you had acquisitions as the thing. So does this mean that would you be looking at more organic growth going forward? And Saurabh, I think last quarter you said this quarter you'd be hiring 5,000 freshers. So will you still stand by the number given that you just now mentioned that macro looks tough?

Okay. All right. So I'll start and then Jetty and then Saurabh. Okay. So sector view, industry view. I mean, you've all read what has happened in the last weeks and months. I think there was already a certain level of pressure We have seen, you know, the impact on some of the banks, whether it's in America and in Europe, and it's adding to a certain level of anxiety or uncertainty. And I think it's a reality. Now, we know that this is an industry where things may slow down but also accelerate very suddenly. So, you know, we are ready. We are strong in this industry. We are working on some large consolidation, transformation deal. and we know things will pick up again rapidly. As I said, in this industry, having said that, no consolation. Random coming from, you know, discretionary spend cut in places, yes. Other industries, I think one that is, we have seen a slowdown is certainly technology sector, but again, Typically, a sector that has gone tremendously over the last quarter and will resurrect growth very rapidly. Actually, we're starting to see some of them starting to feel more positive again. Across other sectors, I would say there's possibly a bit of softness in CPG and retail. And we are seeing sectors like energy, utilities, or healthcare doing actually really well. So that's the view of the sectors. Second.

Yeah. So, Haripriya, let me respond to your question. So just to set a context, you know, in 21, 22, we grew more than 26%. In 22, 23, we have grown 11.5%. By design, we are looking for more organic growth. So that's core of what we do. We do acquisitions when it makes a lot of sense for us to acquire that capability or the asset. I spoke about the gross and net cash that we have. We have $3.1 billion of cash. Collective cash that will go out because of buyback would be $1.8 billion. So that leaves $1.3 billion. Plus we'll accrue the cash through this quarter when we complete the buyback. So even when we meet again in July, I should have about $1.5, $1.6 billion of cash. net of debt cash so we have sufficient uh flexibility fluidity liquidity whatever you may want to call to pursue the inorganic uh you know pursuits whatever makes sense uh so that's my response and on hiring uh i said last quarter we'll add up to around 5000 and we added that number of

NG is in that quarter. That's what we spoke about in last quarter, Q4. That's what we have done. And Thierry explained it so well. You'll see how we have built it over the time. We went ahead in Q1. We trained people. We made sure that they're ready for growth coming in. So it's as a plan. We're improving our utilization. So it's moving as per our well-thought-through plan.

We'll take the next question from Varun Sood.

Hi, gentlemen. Couple of questions. Firstly, can you just tell us about this large deals team under Stephanie, which was set up about two years back? Because if you look at the data sheet, there has been absolutely no change in your... 20 million over 20 million plus clients over the last 12 months. So it gives you the sense that the last 12 months has actually been kind of a washout. When I'm talking about large deals, I believe the Metro was the last large deal of 700 million, which you had signed in December 2020. Some of your larger peers have also signed certain large deals. For a company of a Wipro scale, What is essentially lacking where your ability to structure 500 million plus and those deals are not being able to be signed? That's the first large question. Thank you.

Okay, so thank you for the question. We built the CGO office and a large yield team under Stephanie. We started to build it two years ago. It started by building up our pipeline and then creating large opportunities that we've started to run. Fact is that, you know, we have won more large deals every quarter over the last four quarters. Now, indeed, you're right. Two years ago, we had closed a mega, mega, mega deal, where this year we didn't close a deal of that size, but many more. Large, but not that large deals. So it's not a reflection of, you know, lack of impact of this team. In fact, I'm very satisfied with the volume of large deals we are closing. it is also a reflection of what you know what is happening in the market in term of win rate in large deals area we are doing also better than we were doing one or two years ago so i'm positive and and confident about the way not only that you know this engine is working that it has delivered results and that he will continue to deliver result next year and varun i just want to supplement with some data points you know we declare greater than

$30 million, the large deals that we sign every quarter. So if you look at the four quarters of 21-22, we had signed 37 such deals for whole year. For 22-23, which is the year we just ended, we have signed 55 such deals. So 37 to 55. So in fact, our large deal winning is continuing to increase. If you see Q1 of this year, And Q4 of this year, in both years, we have signed more than $1.1 billion of such large deals. And this quarter, it's 15 such deals in one quarter alone that we have signed, which cumulates to $1.1 billion. The total TCV growth in 2020 compared to previous year is also 55%. So overall, we are quite happy with the way we are bringing the large deal wins. Your question from the customer sort of bucketing standpoint is quite valid. But my request is that, you know, customer buckets don't change sort of every quarter. If you go back to quarter four of last year and quarter four of this year, you would see that greater than $50 million, we have about three to four more customers that we have added. Greater than $10 million, which is our threshold to consider a customer who's strategic for us, which can eventually become, let's say, $50, $70, $80 million, that has gone up by about 14 such names, from 194 to 208. So I think the deals are coming in, they are becoming institutionalized, and our business is growing. So, I mean, these are the numerical facts to what Thierry mentioned.

Thank you. So the second question is, there seems to be a little bit of a disconnect in your qualitative statements and the numbers. So when you are saying that over the last two quarters, we've had the highest bookings, how do you really, or how should the street really... Take that into consideration considering you are giving a negative 3 to 1% sequential growth. Now, in IT services company, and you know it better, if you start the fiscal at a negative growth, it's very difficult to even close the full year, and it's way too early, but even have any incremental revenue. You are again making a point that macroeconomic challenges continue. But if we look back in the last four quarters, this is the third time when the sequential growth has been less than 1% in reported terms. So what essentially explains that despite all these good commentary, when it comes to numbers, Wipro is actually lagging its larger peers.

Thank you. You know, again, so first of all, numbers are numbers, okay? 4.1 billion for the quarter is not comments. This is numbers. This is actually what we've closed this quarter, and the fact that this has grown 47% over the last year in the last two quarters is fact. Second, I think you're looking at a growth rate Again, you're looking at the quarter. Look at the year. It's a second year of growth, WG growth, 11.5% of growth for the year. Now, the fact that we are giving a negative guidance

At Firestone Complete Auto Care, your car is serviced from top to bottom, hood to trunk.

Oil change.

Brakes.

Flat repairs.

Alignments. Coolant flush. Coolant systems. Suspension. Tire rotation. Tire replacement. Firestone Complete Auto Care.

You know, some have done it in the previous quarter, some do it in this quarter. I think it's probably a reality that the impact of the discretionary spend reduction is somewhat readjusting a little bit the growth line. For the rest, I think the trend is substantiated by the bookings performance. Jatin, you want to start? Yeah.

So the last question.

One will come back to you. One will come back to you. We'll take another question. We have Sai next from ET.

Hello, gentlemen. I just wanted one clarification. Thiri, you said in your comments that consulting business is also seeing some sort of a softness. So how should we read into this? Because you've grown aggressively on the consulting side. You've acquired Capco and acquired other companies like Agile and all. So how do you see, do you see that the timing of the consulting business when you anticipate it to fire in terms of growth, you're seeing there is softness. So how should we read into this? And also, Saurabh, we just wanted to know the variable pay figure for the current quarter. Thank you.

Yeah. So on the consulting business, I would say a couple of points. The choice to do the acquisitions and reinforce our consulting business is strategic. It is required because it improves our ability to drive large transformation programs, to have strategic discussion with our client, to position our, to increase the value of our value proposition, right? Second, if we are looking at those acquisitions, and you're right, you mentioned some of them, the performance they have delivered with Wipro over the time since they've been acquired, they are ahead of the plan. So it has paid off. Third, we know that consulting, and I think I've said it probably two or three quarters ago, is early cycle. And so we know that consulting is usually when there's a slowdown impacted the first, but also the first one to bounce back when there's an acceleration. That's what we're observing. Having said that, we continue to win very, very nice deals, and I think the nature of the deals we are winning by combining our consulting business with our technology expertise is clearly reinforcing our position with a lot of our clients.

On variable pay, we are organized where people get paid based on the individual performance of the units. Overall, it will be above 80% is the variable payout for them.

Hello. My name is Navamya. I'm from Reuters. I have a question. So I've been seeing that the IT services segment revenue over the past year and a few quarters as well, there has been growth, but it's a very slow growth. So I want to understand why that has been happening. And my second question is, although there are quite a few deals that were won during the quarter, why has there been a dip in your profits?

Jatin, you want to take that? Yes. So, you know, we spoke about the fact that the deal wins create two things. One, it creates a clear, it establishes in the marketplace who's winning. So we have all spoken about vendor consolidation deal. We have spoken about market share gain. Very clearly we see that. For this year, our bookings have grown 29%. Now, as you know, this is TCV, which means it counts the deal value from the inception till the deal ends. So not everything of every dollar of that is going to get consummated in this year. So one is there is larger lock-in that we walk in with in 2023-2024 compared to what we ever had thanks to these deal wins. Now, why this is not fully reflected? Our theory spoke at length. There are pause. There are certain pauses that we see from some of our customers on the discretionary side where we are seeing that that is creating a sort of discontinuity in terms of the revenue momentum and that discontinuity is reflecting in our quarter one guidance. On margins, margins have continued to remain very stable. As you know, we delivered 16.3% in quarter three, and we have delivered 16.3% operating margin in quarter four as well. So I don't see any reason of reduction of operating margin.

We'll take one question that has come online from Mind. Shobik asks about the buyback, if we can get a broader understanding behind the buyback and its rationale.

Sure. As you know, we have a policy of returning 45% to 50% of the net income over a block of three years to our shareholders. And with that philosophy, we have planned buyback. Our last buyback was January of 2021, which is… more than two years from there. And within the block of three years, we typically announce a buyback, and we felt that we have sufficient legroom, or you can say headroom, from the accumulated cash on the balance sheet perspective. This is also beginning of a new year. We both felt that this is appropriate, that the timing of buyback should be now, and that's the overall context.

With that, we come to the end. We've run out of time. Thank you, ladies and gentlemen, for joining us. Thank you.

Thank you.

How many companies do you look up?

I may look up four, five, six, seven or more. Whatever is of interest, it could be more than that I look up. Before coming here, I was going somewhere else. I looked up five balance sheets on money control, not necessarily the company, to understand this is in the banking space, to look at what has happened to capital, what has happened to profitability, what is happening to ROE. I was speaking somewhere else. Yeah. So I'll do it on the fly. It took me exactly three minutes, thanks to money control. First thing to come up is money control, so I don't even have to scroll down to look at it. I click, and I get what I want.

At Amica, we provide you with something more than auto, home, or life insurance. It's empathy.

I'm so glad you're okay. Thank you.

Because at Amica, your coverage always comes with compassion.