BIRLASOFT LIMITED — Interim / Quarterly Report 2020

May 20, 2020

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May 20, 2020

BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400001.

National Stock Exchange of India Ltd., Exchange Plaza, C/1, G Block, Bandra - Kurla Complex, Bandra (E), Mumbai – 400051.

Scrip ID: BSOFT Scrip Code: 532400

Kind Attn: The Manager, Department of Corporate Services

Symbol: BSOFT Series: EQ Kind Attn: The Manager, Listing Department

Subject: - Investor release for Q4 FY 2020.

Dear Sir / Madam,

Please find enclosed the investor release for Q4 FY 2020.

Kindly take the same on your records.

Thanking you.

Yours faithfully,

For Birlasoft Limited

(Formerly KPIT Technologies Limited)

Digitally signed by Sneha Prashant Padve DN: c=IN, o=Personal, Sneha Prashant 2.5.4.20=ca0d410a7eeb298c2a818517cb339196185f946bfacbb36e5c13b79d90e61972, postalCode=411028, st=Maharashtra, Padve serialNumber=8c30c43447bd2b02bb22fe40d852ce4a102a7b90b6b3adf8cde2a7e827b7212d, cn=Sneha Prashant Padve Date: 2020.05.20 19:03:31 +05'30' Sneha Padve

Company Secretary & Compliance Officer

Encl.: - As mentioned above.

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Q4’FY20 Investor Update

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Investor update Q4 & FY 2019-20

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Q4’FY20 Investor Update

Birlasoft Q4 Revenue; up 15% YoY

EBITDA, up 88% YoY, Signs TCV of $ 669 M in FY20

Pune, Noida (India), May 20, 2020 : Birlasoft [BSE: 532400, NSE: BSOFT], a part of the USD 2.4 billion diversified CK Birla Group , reported its audited consolidated financial results for the fourth quarter and year ended March 31, 2020.

Dharmender Kapoor, Managing Director and Chief Executive Officer , Birlasoft, said, “FY20, being our first year of operations as new Birlasoft, makes me look back with great satisfaction. We have achieved industry-leading growth over the past two quarters and are closing the year strong, even in the midst of the turmoil of COVID-19. I want to thank our Birlasoft team for challenging themselves to excel as the partner that our customers can depend upon in a time of crisis. We not only successfully integrated and adapted to the new organization model, but have set ourselves apart as nimble, dependable and innovative. By enabling and supporting our customers from the beginning of this pandemic, and keeping our focus on the health and safety of our employees, we continue to make the best of this challenging situation.”

Key Financial highlights for Q4 FY20

in USD

• Revenue at $ 125.6 M, up 7.5% QoQ & 11.0% YoY

• EBITDA at $ 16.2 M, up 7.3% QoQ & 81.4% YoY o EBITDA margin at 12.9%; up 500 bps YoY

• • Q4 PBT at $ 15.3 M; up 8.2% QoQ & 32.2% YoY

• Signed TCV deals of $ 125 M during the quarter

in INR

• Revenue at Rs. 907 Crore (Cr), up 8.9% QoQ & 15.1% YoY

• • EBITDA at Rs 117 Cr, up 8.6% QoQ & 88.1% YoY • PBT at 111 Cr up 9.6% QoQ and 37.1% YoY • Final dividend of Rs 1/- per share

Key Financial highlights for FY 19-20

in USD

• Revenue at $ 464.0 M, dn 2.2% YoY[#]

• EBITDA at $ 55.3 M, up 20.0% YoY o EBITDA margin at 11.9% vs 9.7% in FY 19

• PBT at $ 47.4 M; up 6.2% YoY

in INR

• Revenue at Rs. 3,291 Cr, dn 0.4% YoY

• EBITDA at Rs 392 Cr, up 22.3% YoY

• Margin expansion of 222 bps YoY

• • PBT at Rs 336 Cr; up 8.3% YoY

• # YoY comparison is on proforma financials for FY 18-19

Other highlights

• The Board recommends a final dividend of Rs. 1/- per share (Face Value Rs 2/-) o Total dividend for FY 19-20 at 2/- per share

• Signed TCV deals of $ 669 M during the year, including one of the largest deals ($ 242 M) o Won $ 433 M of new business and $ 236 M of renewals for FY20 (TCV)

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Q4’FY20 Investor Update

• Active Client Count at 378

• $ 10 M customer at 7; up by 1 during Q4

• $ 5 M customer at 17; up 2 during Q4

• Net Cash of $ 48.8 M (pre-dividend) generated during the Year

• Cash & Equivalents up from US$ 83.1 M to US$ 88.4 M (INR 666 Cr); up US$ 5.3 M

• DSO at 72 days, down by 7 days YoY

• Manpower strength of 10,268 as at 31[st] March 2020 versus 10,061 a year back

• Net addition of 207 professionals during the financial year and 139 during the quarter

Deal wins for the quarter

• Selected by a US Industrial Equipment major for its Oracle associated Application Management stack.

• Chosen by a US Retailer for wireless products required for their technical support services.

• Selected by an Asian Energy major for Digital Transformation of its Application Services and Support stack.

• Won a deal from a US Industrial Equipment major for implementation, roll out and support of Oracle ERP Solutions.

• Selected by an Asian Energy major for an upgrade, roll out and migration of SAP S/4 HANA Services.

• Awarded by a Leading Asian Ship building and major for its Application Managed Services and support of JDE applications.

• Selected by a Government Technology major for Digital Transformation of its Application Maintenance Services and Infrastructure Management services.

Awards and Recognition – for FY 20

• Birlasoft was listed among the leading providers in the Booming 15 category, both globally and for the Americas region, based on Annual Contract Value (ACV) won over the last 12 months, according to the 3Q 2019 Global ISG Index™.

• Honored with the ACE Alliance Award 2019 by SAP® for customer excellence and delivery in SAP Product Support. SAP also felicitated Birlasoft as the best-running center of SAP.

• Birlasoft featured in the Everest Group PEAK Matrix Service Provider: Top 10 ITS Challengers list 2020

• Birlasoft and The Confederation of Indian Industry (CII) Foundation, signed an MoU towards the third phase of Shodhan, a crop residue management program.

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Q4’FY20 Investor Update

• Recognized with the 'Companies with Great Managers' award at the 4th Edition of the 'Great Managers Awards' 2019.

About Birlasoft

Enterprise to the Power of Digital[TM ]

Birlasoft combines the power of domain, enterprise and digital technologies to reimagine business processes for customers and their ecosystem. Its consultative and design thinking approach makes societies more productive by helping customers run businesses. As part of the multibillion dollar diversified The CK Birla Group , Birlasoft, with its 10,000+ professionals, is committed to continuing its 158-year heritage of building sustainable communities.

For further information, visit www.Birlasoft.com.

For further information please contact:

Vikas Jadhav Head – Investor Relations +91 9545450975 vikas.jadhav@birlasoft.com	Vikas Jadhav Head – Investor Relations +91 9545450975 vikas.jadhav@birlasoft.com
	Vikas Jadhav Head – Investor Relations +91 9545450975 vikas.jadhav@birlasoft.com	Suma Nair Media Relations +91 9833084449 Suma.Nair@birlasoft.com

Disclaimer.

Some of the statements in this update that are not historical facts are forward-looking statements. These forward-looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, the level of market demand for our services, the highly-competitive market for the types of services that we offer, market conditions that could cause our customers to reduce their spending for our services, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are common to industry.

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Q4’FY20 Investor Update

FACT SHEET Q4 & FY 2019-20

Rs. 1/- Final Dividend

7.5% QoQ Rs. 666 Cr Q4 $ Growth FY 20, Net Cash

Key Metrics

Revenues by

Client Geography	Quarter Ended	Quarter Ended	Quarter Ended	Quarter Ended	Quarter Ended
	Q4 FY19	Q1 FY20	Q2 FY20	Q3 FY20	Q4 FY20
Americas	79.0%	76.3%	78.4%	79.6%	81.6%
Europe	11.1%	12.4%	11.0%	10.6%	8.7%
Rest of the World	9.9%	11.3%	10.5%	9.8%	9.7%
Total	100.0%	100.0%	100.0%	100.0%	100.0%

Revenue by Industry Verticals	Quarter Ended	Quarter Ended	Quarter Ended	Quarter Ended	Quarter Ended
	Q4 FY19	Q1 FY20	Q2 FY20	Q3 FY20	Q4 FY20
Discrete Mfg,Hitech & Media	19.4%	19.2%	19.8%	17.4%	17.4%
BFSI	20.2%	19.3%	19.9%	18.8%	17.1%
Energy& Utilities	18.5%	18.1%	17.8%	18.3%	17.0%
CPG,Retail & Process Mfg	13.5%	14.3%	11.6%	12.4%	11.4%
Lifesciences	15.2%	14.6%	16.9%	19.6%	25.2%
Automotive	13.1%	14.5%	14.1%	13.5%	11.8%
Total	100.0%	100.0%	100.0%	100.0%	100.0%

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Q4’FY20 Investor Update

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Quarter Ended
Revenue by Service Offerings
Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20
Integrated Enterprise Solutions (IES) 31.4% 33.0% 32.5% 32.6% 32.3%
SAP 20.4% 19.2% 16.8% 16.8% 16.2%
Digital Transformation (DT) 29.1% 28.6% 28.4% 27.7% 26.9%
Custom Application Development 10.9% 10.8% 13.0% 13.0% 12.5%
Other horizontals 8.2% 8.4% 9.3% 9.9% 12.0%
Total 100.0% 100.0% 100.0% 100.0% 100.0%
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Quarter Ended
Revenues by Contract Type
Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20
Time & Material 57.0% 54.8% 58.0% 53.3% 52.5%
Fixed Price, Fixed Monthly 43.0% 45.2% 42.0% 46.7% 47.5%
Total 100.0% 100.0% 100.0% 100.0% 100.0%
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Quarter Ended
Revenues Mix
Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20
Onsite 56.9% 55.0% 54.7% 58.2% 58.9%
Offshore 43.1% 45.0% 45.3% 41.8% 41.1%
Total 100.0% 100.0% 100.0% 100.0% 100.0%
Deal Wins - New Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20
Total Contract Value (TCV) - in $ Mn 50 58 30 278 67
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Currency Mix of Revenue	Quarter Ended	Quarter Ended	Quarter Ended	Quarter Ended	Quarter Ended
	Q4 FY19	Q1 FY20	Q2 FY20	Q3 FY20	Q4 FY20
USD	79.1%	77.1%	78.0%	78.2%	77.6%
GBP	2.6%	2.6%	2.8%	2.5%	1.5%
EUR	5.3%	6.8%	5.5%	6.3%	6.0%
Others	13.0%	13.5%	13.7%	13.0%	14.9%
Total	100.0%	100.0%	100.0%	100.0%	100.0%

Exchange Rate (INR/USD)	Quarter Ended	Quarter Ended	Quarter Ended	Quarter Ended	Quarter Ended
	Q4 FY19	Q1 FY20	Q2 FY20	Q3 FY20	Q4 FY20
Period Average	69.68	69.55	70.39	71.33	72.24
Period End	69.15	68.92	70.68	71.27	75.39

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Q4’FY20 Investor Update

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Quarter Ended
Client Data
Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20
No of Active Clients 401 398 381 381 378
Clients added 1 (3) (17) - (3)
No of million $ clients (LTM)
US$ 1mn+ Clients 84 86 86 85 86
US$ 5mn+ Clients 16 16 16 15 17
US$ 10mn+ Clients 5 5 5 6 7
Client Contribution to Revenue (LTM)
Top 5 26.4% 26.0% 27.1% 28.0% 28.1%
Top 10 36.2% 36.5% 37.1% 38.4% 40.1%
Top 20 48.8% 49.0% 49.9% 50.8% 53.3%
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LTM - last twelve months

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DSO Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20
Days Sales Outstanding - Billed 79 81 81 65 72
Quarter Ended
Headcount Metrics
Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20
Total Headcount 10,061 10,085 9,994 10,129 10,268
Technical 9,013 8,884 8,947 9,046 9,168
Sales & Support 1,048 1,201 1,047 1,083 1,100
Women Employees 2,203 2,257 2,252 2,240 2,306
Attrition (LTM) 19.9% 21.7% 22.5% 20.3% 18.9%
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Q4’FY20 Investor Update

Consolidated Income Statement for quarter ended Mar 31, 2020

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Particulars In USD Mn In INR Mn
Quarter Ended 31-Mar-19 31-Dec-19 31-Mar-20 31-Mar-19 31-Dec-19 31-Mar-20
QoQ YoY QoQ YoY
(Audited) (Unaudited) (Audited) (Audited) (Unaudited) (Audited)
Revenue from operations 113.1 116.8 125.6 7.5% 11.0% 7,883 8,333 9,071 8.9% 15.1%
Expenses - - - - -
Employee benefits expense 71.2 69.9 72.7 3.9% 2.1% 4,959 4,988 5,251 5.3% 5.9%
Other expenses 33.1 31.8 36.7 15.3% 11.1% 2,303 2,271 2,652 16.8% 15.2%
EBITDA 8.9 15.1 16.2 7.3% 81.4% 621 1,075 1,167 8.6% 88.1%
EBITDA Margin % 7.9% 12.9% 12.9% (3) 500 7.9% 12.9% 12.9% (3) 500
Depreciation & amortization 1.9 2.8 3.0 130 201 214
EBIT 7.0 12.2 13.2 7.8% 87.3% 491 874 954 9.1% 94.2%
EBIT Margin % 6.2% 10.5% 10.5% 3 428 6.2% 10.5% 10.5% 3 428
Other income (net) 2.4 2.5 2.6 4.8% 7.6% 170 178 189 6.2% 11.5%
Finance costs 0.4 0.6 0.5 28 40 34 -15.8% 22.9%
Exceptional items 2.5 - - 175.9 - -
Profit before tax (PBT) 11.6 14.2 15.3 8.2% 32.2% 809 1,011 1,109 9.6% 37.1%
Provisions for Tax 2.1 4.0 5.8 148 285 418
Profit for the Period 9.5 10.2 9.6 -6.2% 0.8% 661 727 690 -5.0% 4.5%
PAT Margin % 8.4% 8.7% 7.6% (111) (77) 8.4% 8.7% 7.6% (111) (77)
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Consolidated Income Statement for Year ended Mar 31, 2020

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Particulars in USD Mn in INR Mn
Year Ended 31-Mar-19 31-Mar-20 31-Mar-19 31-Mar-20
YoY YoY
(Proforma) # (Audited) (Proforma) # (Audited)
Revenue from operations 474.6 464.0 -2.2% 33,052 32,910 -0.4%
Expenses
Employee benefits expense 286.7 281.6 -1.8% 19,965 19,975 0.1%
Other expenses 141.8 127.1 -10.4% 9,884 9,015 -8.8%
EBITDA 46.0 55.3 20.0% 3,204 3,919 22.3%
EBITDA Margin % 9.7% 11.9% 221 9.7% 11.9% 222
Depreciation & amortization 9.2 11.6 640 826
EBIT 36.9 43.6 18.3% 2,564 3,093 20.6%
EBIT Margin % 7.8% 9.4% 163 7.8% 9.4% 164
Other income (net) 6.9 6.1 -12.7% 483 430 -10.9%
Finance costs 1.7 2.3 118 161
Exceptional items 2.5 - 176 -
Profit before tax (PBT) 44.6 47.4 6.2% 3,104 3,362 8.3%
Provisions for Tax 8.7 15.8 618 1,119 80.9%
Profit for the Period 35.9 31.6 -11.9% 2,486 2,243 -9.7%
PAT Margin % 7.6% 6.8% (75) 7.5% 6.8% (70)
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# Financials for FY19 are on a Proforma Basis (Combined entity i.e. Birlasoft (India) Ltd + KPIT IT Services' business). Birlasoft (India) Ltd (an unlisted company) merged and amalgamated with the KPIT Technologies Limited (earlier listed as NSE : KPIT); and the engineering business of KPIT Technologies Limited was, on a going concern basis, demerged and transferred to KPIT’s Engineering Services Ltd. effective 15th January 2019. (with appointed date as 1st January 2019 as per the NCLT order).

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Q4’FY20 Investor Update

Consolidated Balance Sheet Statement

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in USD Mn in INR Mn
Particulars as at
31 Mar, 2019 31 Dec, 2019 31 Mar, 2020 31 Mar, 2019 31 Dec, 2019 31 Mar, 2020
ASSETS (Audited) (Unaudited) (Audited) (Audited) (Unaudited) (Audited)
Non-current assets
Property, plant and equipment 20.9 21.4 19.0 1,444 1,525 1,434
Right-to-use assets - 19.9 18.4 - 1,415 1,389
Goodwill 61.0 60.8 60.2 4,219 4,333 4,541
Other intangible assets 3.1 1.7 2.2 218 118 168
Financial assets
Loans & advances 1.5 2.0 2.0 100 143 147
Other financial assets 1.2 1.7 0.5 84 121 35
Income tax assets (net) 10.0 11.7 12.7 691 834 958
Deferred tax assets (net) 20.7 20.5 15.9 1,433 1,463 1,200
Other non-current assets 0.7 1.9 1.5 52 137 115
Current assets
Financial assets
Investments 27.6 19.8 4.4 1,909 1,408 330
Trade receivables 102.8 89.9 98.2 7,107 6,404 7,402
Cash and cash equivalents 52.3 60.2 59.6 3,617 4,289 4,496
Other balances with banks 2.2 14.6 23.9 155 1,040 1,805
Loans & advances 0.7 0.6 0.3 48 43 21
Unbilled revenue 14.0 9.4 9.8 970 669 738
Other financial assets 28.0 5.2 4.7 1,938 369 356
Other current assets 14.3 16.8 23.0 990 1,200 1,737
TOTAL ASSETS 361.2 357.9 356.5 24,976 25,511 26,873
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Particulars as at	in USD Mn	in USD Mn	in USD Mn			in INR Mn	in INR Mn
	31 Mar, 2019	31 Dec, 2019	31 Mar, 2020		31 Mar, 2019	31 Dec, 2019	31 Mar, 2020
EQUITY AND LIABILITIES	(Audited)	(Unaudited)	(Audited)		(Audited)	(Unaudited)	(Audited)
Equityshare capital	7.9	7.8	7.3		548	553	553
Other equity	239.9	249.8	243.7		16,587	17,804	18,371
Liabilities - Non-current
Financial liabilities					-	-	-
Lease liabilities	-	17.0	15.1		-	1,213	1,140
Other non current liabilities	0.9	-	-		59	-	-
Provisions	9.2	9.9	9.2		637	705	695
Current liabilities
Financials Liabilities
Borrowings	5.5	-	-		381	-	-
Tradepayables	31.1	23.4	25.3		2,148	1,670	1,904
Lease liabilities	-	4.4	4.1		-	314	311
Other financial liabilities	45.6	18.8	25.6		3,155	1,342	1,932
Other current liabilities	12.8	14.7	15.8		887	1,047	1,190
Provisions	2.5	2.4	2.6		174	169	195
Income tax liabilities(net)	5.8	9.7	7.7		399	694	583
TOTAL EQUITY AND LIABILITIES	361.2	357.9	356.5		24,976	25,511	26,873

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Q4’FY20 Investor Update

Consolidated Cash Flow Statement for FY 20

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Cash Flow Statement for FY 20 in USD Mn in INR Mn
Profit for the year 29.8 2,243
Income Tax (net) 4.2 314
Depreciation and Amortisation 11.0 826
Net Interest 0.8 62
Other 7.5 564
Movements in working capital (11.7) (885)
Net cash (used in)/generated fm operating activities (A) 41.4 3,124
Purchase of property, plant and equipment (Net) (7.2) (543)
Sale of investments at fair value through P&L (net) 21.8 1,643
FD with banks (net) having original maturity over 3 mnts (20.7) (1,562)
Net cash generated/ (used) in investing activities (B) (6.1) (462)
Other (0.3) (26)
Repayment of Working Capital loan (net) (5.1) (381)
Repayment of lease liabilities (5.2) (394)
Dividend paid including corporate dividend tax (13.2) (996)
Net cash used in financing activities (C) (23.8) (1,797)
Net Increase/ (decrease ) in cash / Eq (A + B+ C ) 11.5 865
Exchange diff on translation of Fx currency cash & Eq 0.2 14
Cash (deficit)/ Surplus for the year 11.7 879
$ / INR conversion rate 75.4
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Q4’FY20 Investor Update

Q4 Earnings Conference Call on 21[st] May 2020 at 10:00 a.m. (IST).

Dial in Information

India 10:00 IST. Hong Kong / Singapore – 12:30; London 5:30; New York 00:30

Universal Dial In +91 22 6280 1179 +91 22 7115 8840	Local Dial In- all over India +91 7045671221
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Playback Start Date:21st May 2020 Playback End Date:24thMay 2020	Playback Code: 42073 Dial-in Number:India (+91 22 66635757)

Disclaimer.

Some of the statements in this update that are not historical facts are forward-looking statements. These forward-looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, the level of market demand for our services, the highly-competitive market for the types of services that we offer, market conditions that could cause our customers to reduce their spending for our services, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are common to industry.

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