Question-and-Answer Session
Operator
Thank you very much sir. We will now begin the question-and-answer session. Please note that all participants who have logged into the call are allowed to ask questions. There is no specific priority for participants in India and the ones outside India. [Operator Instructions]. The first question comes from the line of Mr. Rod Bourgeois from Bernstein. Please go ahead sir.
Rod Bourgeois - Sanford Bernstein
Great. Rod Bourgeois here. Hey, I had a question about the growth outlook; I mean a question about the receivables. You have increased your fiscal '08 revenue guidance by 5.5 points, and this occurring pretty early in the year. You mentioned the sort of confidence that you have with your customers that I guess is giving you some visibility into the growth outlook, but I was hoping if you could give us some specifics on what's giving you the confidence in raising your guidance by this magnitude this early in the year? And to what extent is this confidence coming from large PDO [Parts Disposition Order] that are ramping up right now?
Ram Mynampati - Member of the Board and President, Commercial & Healthcare Businesses
Increase: Rod, good morning this is Ram Mynampati here. There are obviously a number of factors that go into our consideration as far as revised guidance is concerned. Clearly the inputs that we got from the customers at Customer Summit are important, but from a near-term perspective what we see in the pipeline and the pace at which the prospects are converting into customers and orders, would also play a great role. We also have closed two large deals this year; one obviously we have announced with Nestle. We would also have orders worth almost $100 million that we have won from a retail client and that we expect with to ramp up. So we have taken a look at the ramp-up patterns that we see clearly visible among the existing customers and the momentum that we see in Q1 that gives us the confidence, in addition to the fact that we have outperformed the guidance in Q1 by about 5% or so. So, on the back of 10% quarter-on-quarter growth in Q1 and the visibility that we have in the pipeline, that's the confidence that we have.
As far as the specifics related to ARP is concerned, clearly ARP is a strong suite of ours. In this quarter as well, we have grown almost 14% or so and that continuous to be a very strong market segment. But we are also seeing other services segments like Infrastructure and Engineering Services. At least, we believe that the momentum that we are witnessing in Q1 would continue in the next few quarters, perhaps may not be to the same magnitude. And we're also seeing fairly good prospects across the vertical market lines. The assets have grown very nicely this quarter. Telecom continues to be very strong, retail and healthcare have grown very nicely this quarter. So clearly, all round we are saving good prospects and the momentum that we see coming into the Q2 is what gives us the confidence for the revised guidance.
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