Yeah hi sir, this is question to Srinivas. Sir can you give me some reason why the CapEx went up very sharply during this quarter and actually if I look at the CapEx that has happened in the first half it is much ahead of what you guided for in March-April, so how should I look at this number going forward? Thanks.
V. Srinivas
Pankaj as you are aware, we have started off our own buildings in our own SEZs in Hyderabad especially. So that is the reason why the CapEx has gone up, so this is basically with our new strategy to building more and more SEZs and also get all our growth in the SEZ. So with that strategy and also we are moving the away from leased premises model to now owned premises model. So that is the primary reason.
Pankaj Kapoor – ABN Amro
Sir, in April call you had guided that you will be having a CapEx of for roughly about $125 million for this year and if I just look at the first half data it is about close to about 150+ so I was just trying to reconcile that there has been a shift in our strategy as far as in accelerating the set up of the SEZs? Or see you this whole amount doubling more going up further in the next two quarters?
V. Srinivas
Pankaj, I think you are getting confused with the capitalization that we have done in the fixed asset schedule and the actual CapEx we have incurred. So this capitalization of whatever 400 Crores that has happened in this quarter is accumulated capital work in progress over the last 7-8 quarters. So we have capitalized that now in this quarter that is why we are seeing the fixed asset schedule as additions in this quarter and depreciation has also gone up. This is not the actual spent in this quarter. So what actually we have spent in this quarter on CapEx is only $40 million.
Pankaj Kapoor – ABN Amro
Okay. Fair enough. And secondly can you give me some sense in terms of the BFSI like clients without obviously naming them but if I look at the clients where we have seen some kind of issues either they are getting acquired or so, what percentage of our revenues would be coming in from such accounts?
Ram Mynampati
Well as we have talked about it earlier, this is Ram Mynampati here. In BFSI sector, there are three segments. The retail banking, the institutional and investment banking, and capital markets & insurance, they all contribute equally to our business. So the maximum exposure you have is one-third of our BFSI exposure, which is about 21% and within that you know these clients that you mentioned constitute may be one-third of the market.
Pankaj Kapoor – ABN Amro
Okay. So can I take it as there is roughly around say 7% or 8% of the revenues from such account and that could have been the minimum?
Ram Mynampati
No. That is the maximum. 7% is the maximum of the capital market size within that and the name side, which you referred to constitute may be 1/3rd to ½.
Pankaj Kapoor – ABN Amro
Okay. Fair enough. And Sir lastly, any 15 million plus kind of a large deals that we had in this quarter and what is the outlook or the pipeline we are looking at on such deals?
Ram Mynampati
We have closed one opportunity of that kind this quarter. The outlook remains fairly positive except the cycle times seem to be getting longer in pursuit of those opportunities but the pipeline remains very strong.
Pankaj Kapoor – ABN Amro |
