On the deals delay and ramp-ups, the offset from furloughs being lower working days, and clarification on EMR sector outlook and salary hikes timing.
lower working days, which is not really, this is in some sense, offsetting for those furloughs. And therefore, we have given you the guidance we have. But these deals should continue to convert. Each deal is different. We are confident it will take some time, but it will ramp up.
Outlook on EMR sector performance and pipeline.
Thanks, Aparna. Happy New Year, Nitin. As far as EMR is concerned, our performance in this sector clearly has been impacted based on the macroeconomic uncertainty we have seen, some during tariff related and also some disrupted supply chain issues that we faced. However, our pipeline continues to remain strong in the sector. And essentially, the significant pipeline is around either vendor consolidation or cost takeout. And ifl were to give a little bit of color to specific segments, we have good momentum in energy in both Americas and Europe. And as far as manufacturing is concerned, we are seeing that in Europe. Also, our Capco business, which is also seeing some traction on the energy consulting side. So net-net that's the situation that we have right now with EMR, Nitin.
Question on salary hikes timing.
In salary hikes, we will take a call in the next few weeks in terms of when should we be doing it. Our intention is to look at it this quarter, but we will confirm it during the next couple of weeks.
Do you think EMR should start getting back to growth sometime next year?
So as far as EMR is concerned, Nitin, I will just repeat that. One is the pipeline. Like I said, specifically, we have good momentum on the pipeline in energy in both Americas and Europe. And as far as manufacturing is concerned, it's in Europe. I think our focus right now is to convert these deals and then that should drive the revenue growth for us. And we are just staying focused on winning some of those deals, Nitin.
Hi. Thanks for taking my question and congrats on a solid performance. So Srini, my question was mainly on basically the Consumer vertical. You mentioned about the challenges in the EMR vertical, banking has been doing well for us. In the Consumer vertical, the growth was set in this quarter. We continue to decline on a Y-on-Y basis. How do you see the outlook in this vertical? We know this vertical also has been impacted a lot by the tariff uncertainty that has basically impacted the producers. But in your conversation with the clients in terms of our interactions in the pipeline, do you see it turning the corner in coming quarters or do you think it will be sometime before some clarity on this vertical?
Thanks, Vibhor. If you look at our consumer sector, clearly, if you recollect, I talked about it before as well that the tariffs had an impact on this and that has reflected in our numbers. And also, if you reflect there was a large SAP program which was put on hold last year by our customers. And again, the client is yet to reinitiate. And that is one of the things that is impacting our year-on-year performance as well in this particular thing, in this particular sector. However, the overall trend that we see right now is mixed here for us in consumer. Some of the wins we had earlier this year is slowly ramping up and that should support the growth in this sector. I do not have-from a Quarter 4 perspective, whatever growth we are seeing, that is baked into our forecast, Vibhor.
Got it. And similar thing on the basically, I know it is not that big a vertical, but I think both tech and Health vertical appear to be doing good. Any specific project ramp-up that we saw in this quarter which led to this growth or do you think it is a growth which we can sustain in the coming quarters as well?
You know, in some sense, in Healthcare, we have been consistently doing well. And we have had a sector both in our year-on-year performance. Seasonally, obviously, we have the open enrollment season that really does improve our Health performance in Q3. So, that is also added to the performance. In terms of our Tech & Comm, we continue to do well in some of our large technology players. And there is a little bit of the HARMAN acquisition numbers which is also reflected in the overall sector's performance. And I think Communications in general have done - has been better for Europe & APMEA. That is the color I can give you.
Perfect. That is really helpful. Aparna, just one last question from my side. You mentioned about the few headwinds in Q4 that you will be facing. And ifl look at our guidance, it is 0.02% at the consol level. And if we were to, let us say, extrapolate the two-month incremental impact of HARMAN acquisition, the organic growth will probably fall somewhere between ( -1.5%) to(+ 0.5%). Is that the right understanding? And is the reason for that very much as you mentioned in your opening remarks as well?
You know, Vibhor, for some reason, we are not able to hear it clearly. Can you just load on your question?
There is no such impediment. I mean, you can do that as in when you feel, it is the right time. Is that the way to look at it?
Yes. Absolutely, absolutely.
Noted. The second question is for you and Srini. Let us say, if those two mega deals ramp-ups were not delayed, then what would the guidance have been for the March quarter? Any way to detail it out, either quantitatively, which may be difficult or even qualitatively, that would be very helpful to understand the growth trajectory, yes.
Obviously, we cannot talk about it quantitatively, Kawai. And qualitatively, like I have said, it is only delayed. These ramp-ups should happen, and each deal is different in its nature, right. For example, something like Phoenix, which was entirely net new and fully where there was a clear go-live date and readiness, we have been able to do that and that is fully into our revenue starting Q3. So that has played out perfectly to plan. Right now, in some of the other larger deals, that mega deals that we could be winning in terms of vendor consolidation, these deals typically have both an element ofrenewal and new. Obviously, the renewal is fully in, and that continues. And we are not seeing any changes in terms of expectations. In case of the new, the element of new, some of these things are taking longer, either due to client situations where there could be some changes in the client environment that they are going through. And therefore, there is a little bit of a delay in terms of the timing of the ramp-up. Or it could just be the nature of how it is going to play out, right? Because it will take six quarters, that is what I alluded to. So it is going to take that time. And we are hopeful that this will flow through in the coming quarters.