• Margin stabilization timeline: Margin contraction in Q1 resulted from a six-month transition on a mega deal, with the impact expected to persist through Q2 before margins stabilize in Q3 and Q4.
• TMT segment performance: The 28% drop in TMT revenue was caused by a multi-quarter client-specific issue and tech clients diverting spending to AI infrastructure and chips, though company exposure to the vertical has declined from 28% to 16%.
• AI pipeline contribution: AI-influenced projects accounted for 24% of current order bookings, while AI-related opportunities make up 60% of the active sales pipeline.
• Capital allocation strategy: Management is actively evaluating two to three potential acquisition targets amid favorable asset pricing, but will return excess cash via dividends if suitable inorganic opportunities are not found.
• Quarterly growth outlook: Management expects Q2 performance to be better than Q1 and plans to maintain EBITDA margins while focusing on revenue and market share expansion during the industry's AI transition.