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News: The revenue was down 2.8% QoQ (down 2.4% QoQ in CC terms) to $1555 million as the key segment (Communication Media & Entertainment) remained weak. Key segment – Communication, Media, Entertainment (forming ~37% of the mix) declined by 4.9% QoQ, while BFSI (forming 16.1% of revenues) declined 3% QoQ. The EBIT margins at 4.7% was down 206 bps QoQ, given the negative operating leverage. The TCV stood at US$ 640 mn, up 78 QoQ, driven by large deals.
Views: The near-term demand challenges remain due to reduction in discretionary spends including in key segments. We believe key will be how new CEO (from December, 2023) pivots the business to more diversified from current Communication heavy construct ahead.
Impact: Negative