• Services growth: Services account for over 80% of the business and grew 4.5% sequentially in the second quarter. Growth was 34% in Indian Rupees and about 26% in constant currency; management expects services to exceed 20%.
• Company guidance: Management expects full-year company growth in and around the mid-teens, with most growth coming from services.
• Technology solutions: This business should continue to grow, but seasonality and delays in construction-site readiness on some state-government programs are staggering revenue recognition, not eliminating orders.
• Margin outlook: Salary increments had over 100 basis point impact this quarter, but efficient execution more than compensated. Management expects margins to improve, including in the traditionally soft third quarter, and finish the year in excess of 17%.
• European deal: The discussion cited a $100 million-plus deal win with a European automaker, expected to ramp up in subsequent quarters despite challenges facing European automakers.