Tata Elxsi · tone and specificity signals across the available quarters.
Language signals
We have not been affected you know as much... there is some slowdown in the new deals but having said that I think for us the US market we were able to really significantly grow not just the automotive revenues but also the adjacency revenues including off-road and farm and equipment as well as the aerospace and defense segment.
These investments definitely are around building specialized talent pool... we talked about the AI infrastructure that is needed that we're building so and also all the tools and the cloud investments that are needed to deliver value to our customers... and of course in some of the large deals that we have taken there is also the transition cost.
When you're working with B2B customers in the chosen industries that we operate in which is healthcare, media, telecom as well as automotive and transportation... the industries that we operate in inverted it's quality time and then cost comes last. So to that extent I think the proposition stays strong which is Elxsi leading edge technology capabilities deep domain expertise now backed by AI.
If that incident had not happened, we would have definitely shown a CC positive growth, right? And that that would give you an idea that look that that incident did affect a little bit for us.
The first focus for us is to get to a 75% utilization by end of this financial year and then next financial year to see how we can touch 80%. And that definitely... once we achieve those numbers, I'm pretty confident that our margins will get back to our earlier trajectory.
We are definitely seeing a lot more positive conversations and at least people are coming back for discussions. So we were prepared for the worst but I think things are definitely looking much better now.
I think the confidence is from a number of other customer outreaches or a number of other bids that we are placing. We strongly believe that a few of them will come to a closure in this quarter and that will sort of start the sort of recovery for our media and communication business, healthcare business as well.
We believe there is still scope and runway to improve our utilization further as we see the demand coming back. I cannot commit on short to mid-term but we are very positive that we can go back to the margins that we used to operate at, maybe by the exit of the next year.
Decision-making at times are still a little bit slow. Customers are making very careful, calculated decisions. To that extent, I think it all depends on the value proposition and what you stand for, what sort of problems at the customer end are you going to address based on your business model.
We are still not out of the woods in this particular industry segment.
The real organic growth has been lacking if you ask me. Not very different. I think what's different for us is the fact that you'll see that consistent offshore track delivery.
We are double clicking on value. I think what GenAI does coupled with domain expertise is that it allows you to move up the time to market and quality factors as much as cost.