3i Infotech Ltd — Q4 FY26

3i Infotech Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=I4Kt76px93Y Published: 2 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the 3II Infoch Waterfall FI26 earnings call. Before we begin, a few quick announcements for the attendees. 0:12 12 seconds Anything said on this call which reflects outlook for the future or which could be construed as a forward-looking statement may involve risk and 0:20 20 seconds uncertainties. Such statements or comments are not guarantees of future performance and actual results may 0:27 27 seconds differ from those statements. As a reminder, all participant lines will be in the listenonly mode and there will be 0:34 34 seconds an opportunity for you to ask questions after the opening remarks conclude. If you wish to ask a question, please use 0:42 42 seconds the raise hand feature available on your Zoom dashboard. We will announce your name on the call and unmute your line 0:49 49 seconds post which you can proceed with your questions. Please note that this conference is being recorded. 0:56 56 seconds To take us through the results today and to answer your questions we have the top management of 3II Infoch Limited 1:04 1 minute, 4 seconds represented by Mr. Raj Auja group CEO and Mr. Kalpesh CFO. Mr. Auja will start 1:12 1 minute, 12 seconds the call with business update. After that we will open the floor for Q&A session. With that said, I will now hand 1:19 1 minute, 19 seconds over the call to Mr. Ahuja. Over to you sir. 1:24 1 minute, 24 seconds Um thanks Sukanchi. Um good afternoon everyone and um thank you for joining us 1:31 1 minute, 31 seconds on the Q4 FA26 earnings call. Uh after a brief pause in our investor engagements, 1:38 1 minute, 38 seconds I'm pleased to reconnect with you all today. Over this period of last one year, our focus was on restructuring the organization, 1:46 1 minute, 46 seconds strengthening our structure and building foundation for the next phase of growth. 1:51 1 minute, 51 seconds We deliberately chose to return to this forum once we have meaningful progress to share and I believe today reflects that progress. 2:01 2 minutes, 1 second The structure of my communication is simple. I will begin with the financial highlights of quarter 4 and full year FI26 2:09 2 minutes, 9 seconds followed by business updates across all three lines of businesses. A progress report on the key strategic initiatives 2:17 2 minutes, 17 seconds and finally our outlook on priorities for FI27 followed by Q&A sessions at the end. 2:26 2 minutes, 26 seconds Financial performance to start with for quarter 426 uh we reported a revenue of rupees 175.7 2:34 2 minutes, 34 seconds cr reflecting sequential growth uh of 2.1% increase from rupees 172.1 cr in 2:43 2 minutes, 43 seconds quarter 3 fi26a increased to rups 12 cr in fi fi26 from 2:50 2 minutes, 50 seconds 11.4 4 cr in quarter 3 FIA 26 reflecting a 5.9% quarteronquarter growth gross 2:58 2 minutes, 58 seconds margins incre percentage increase to 12.6% in quarter 4 FA26 compared to 10.8% at 8% in quarter 3 FA26 3:07 3 minutes, 7 seconds marking our sixth consecutive quarter of PAT profitability. 3:11 3 minutes, 11 seconds This trajectory reflects disciplined execution and sustains efforts of the entire team at Tria Infoch. 3:19 3 minutes, 19 seconds For the full year FI26, the revenue stood at rupees 693.3 cr. As I address our investors today, I want to 3:28 3 minutes, 28 seconds acknowledge that revenue remained largely rangebound through most of the year particularly particularly quarter 1 to quarter 3 uh reflecting a period of 3:37 3 minutes, 37 seconds major business momentum across key segments. 3:40 3 minutes, 40 seconds Despite this, AAA business vertical continued to anchor the business through strong client client renewals, new logo 3:50 3 minutes, 50 seconds additions and a co-led approach across application modernization, analytics, ERP and AIdriven solutions. 3:59 3 minutes, 59 seconds Infrastructure based services delivered stable margins, strong account retention and growth across cloud, cyber security, 4:07 4 minutes, 7 seconds hybrid infrastructure and AIdriven operations while also expanding dedicated COE capabilities. 4:14 4 minutes, 14 seconds BPS is undergoing a strategic repositioning from an India focused BFSI model to a digital first AIE transformation business targeting new 4:23 4 minutes, 23 seconds geographies and sectors across the organization. AI is now being embedded horizontally to drive 4:30 4 minutes, 30 seconds scalability, productivity, and long-term growth. 4:34 4 minutes, 34 seconds Meanwhile, in terms of geographical footprint, the US emerged as 3II's info's largest market, accounting for 4:41 4 minutes, 41 seconds 49% of the total revenue in FI26 with revenue in the region growing by 19% yearonear. 4:50 4 minutes, 50 seconds India accounted for 40% of the total revenue. 4:54 4 minutes, 54 seconds For the full financial year, the company reported a beta of rupees 72 cr in FI26. 5:01 5 minutes, 1 second This is against rupes 47 cr in FI25, registering a robust 53.3% year-on-year growth. 5:10 5 minutes, 10 seconds Reflecting enhanced operational efficiency, the company's AITA margin improved to 10.4% in FY26 compared to 6.5% in FI25. 5:21 5 minutes, 21 seconds We continue to maintain a debt-free balance sheet. Our DSO performance also has shown consistent improvement from 65 5:29 5 minutes, 29 seconds days in FI25 to 55 days in FI26, reflecting strong working capital discipline across the organization. 5:37 5 minutes, 37 seconds Not only that, but our voluntary attrition rate also has been dropping consistently from 11.8% 8% in quarter 4 5:44 5 minutes, 44 seconds of FI25 to 7.3% in quarter 4 FI26 which is a reflection of the stability culture 5:52 5 minutes, 52 seconds and commitment that we have built within the organization and something we take immense pride in as a team. 6:02 6 minutes, 2 seconds The successful completion of the right situation in FY26 marked a key milestone in strengthening the company's financial position and future growth readiness. 6:11 6 minutes, 11 seconds The proceeds are being utilized to strengthen working capital and support strategic business growth and operational initiatives. 6:19 6 minutes, 19 seconds The two uh legacy uh items which are the e-mudra and the real matters they are progressing well. In the e-mudra matter 6:27 6 minutes, 27 seconds statements were recording during quarter 4 of FI26 while in the real matter the arbitration panel has been constituted 6:35 6 minutes, 35 seconds and the state of statement of claim has been filed. The company will continue to pursue both these matters towards a positive outcome. 6:45 6 minutes, 45 seconds Coming to our first line of business, AAA which stands for application automated automation and analytics continues to remain the anchor of our 6:54 6 minutes, 54 seconds business contributing approximately 71% of total revenues. We achieved a 90% renewal rate, added 60 new logos 7:02 7 minutes, 2 seconds reflecting the strength of our client relationships and the sustained relevance of our capabilities in the market. Our COled approach with AI 7:11 7 minutes, 11 seconds embedded across practices is strengthening our positioning and creating stronger differentiation in client engagements and strategic conversations. 7:22 7 minutes, 22 seconds Coming to infrastructure services, the business delivered a contribution of 20% of total revenues for the year supported 7:30 7 minutes, 30 seconds by a healthy 98% renewal rate across keys accounts. In FI26, we added nine new logos and expanded large accounts 7:38 7 minutes, 38 seconds across infrastructure management, data center modernization, hybrid cloud, and AIdriven operations. 7:46 7 minutes, 46 seconds We have implemented continuous improvements programs across key engagements helping streamline operations, enhance technology and deliver measurable value to our clients. 7:56 7 minutes, 56 seconds We have also started building dedicated COE capabilities across cloud cyber security AI ops and digital workspace 8:04 8 minutes, 4 seconds solutions by structured go to market initiative across India, US and Middle East. Our focus still remains formally 8:12 8 minutes, 12 seconds on the cloud opportunities growing data center growth ecosystem cyber security and manage services in 8:20 8 minutes, 20 seconds India and global markets and we are moving ahead with confidence and positive momentum. 8:27 8 minutes, 27 seconds Turning to BPS, this is the segment where we believe the maximum transformation opportunity exists. 8:33 8 minutes, 33 seconds The business closed the year at 9% of the total revenue for the year with 10 new logos. 8:42 8 minutes, 42 seconds Uh this uh this revenue was below our internal expectations due to structural headwinds. We have been servicing mainly BFSI customers in India in this segment. 8:54 8 minutes, 54 seconds This business model has been under stress due to regular changes and tightening of outsourcing guidelines across BFSI regulators and also due to 9:02 9 minutes, 2 seconds more automation and AI initiatives across processes especially customer onboarding and servicing. 9:09 9 minutes, 9 seconds However, the strategy for this business has now fundamentally evolved. We are no longer positioning ourselves only as an India focused BFSI BPS player. Our focus 9:19 9 minutes, 19 seconds is actively expanding towards opportunity in the US and Middle East while also diversifying into sectors such as finance, HR, manufacturing, 9:28 9 minutes, 28 seconds healthcare, retail, telco and government. 9:32 9 minutes, 32 seconds The larger objective is to reposition 3i as a global digital first AIE transformation BPS partner. 9:41 9 minutes, 41 seconds Execution is already underway through the roll out of the COE's supported by a dedicated delivery and sales team. While 9:48 9 minutes, 48 seconds the revenue of these initiatives may take a few quarters to reflect, I believe the foundation work is being built in the right direction. 9:56 9 minutes, 56 seconds Most importantly, AI enablement is now becoming horizontal across the organization rather than practice specific. We are embedding AI into 10:05 10 minutes, 5 seconds delivery frameworks, operational processes and client solutions which we believe will progressively drive higher 10:12 10 minutes, 12 seconds scalability, improved productivity and stronger margin per performance over time. 10:20 10 minutes, 20 seconds Several strategic initiatives undertaken in FI26 that may not yet be fully reflected in the revenue line but are 10:27 10 minutes, 27 seconds expected to play a significant role in FI27. 10:30 10 minutes, 30 seconds A key milestone was the formal internal launch of our COE framework across all three business line in December 2025, creating scalable revenue generating and 10:39 10 minutes, 39 seconds margin accurative delivery models to be fully operational by the end of quarter 2 FY27. 10:45 10 minutes, 45 seconds On the business front, we have further strengthened our leadership team across India, Middle East and US with key additions spanning business leadership, 10:54 10 minutes, 54 seconds business development, pre-sales partnerships and a IML capabilities, enhancing our sales and pre-sales capabilities and a shopper Kdriven 11:03 11 minutes, 3 seconds accountability framework. These appointments significantly enhance our execution strength and deepen our domain 11:10 11 minutes, 10 seconds expertise across markets while reinforcing our focus on driving growth, strengthening client engagement and scaling emerging technology capabilities including AIled transformation. 11:23 11 minutes, 23 seconds Our US subsidiary has been on onboarded into the SAP partnership ecosystem with a focus on SAP cloud ERP solution which 11:31 11 minutes, 31 seconds will help us to enhance value to our customers. We will leverage SAP technologies framework to strengthen our service delivery capabilities and 11:39 11 minutes, 39 seconds accelerate outcome for clients across industries particularly in areas of enterprise resource planning datadriven decision-m and cloud adoption. 11:49 11 minutes, 49 seconds While we are still in the process of filling up some critical senior positions, undermine direct leadership, this strengthens new leadership, 11:58 11 minutes, 58 seconds new leadership bench will be instrumental in accelerating our next phase of growth as we move into FI27. 12:06 12 minutes, 6 seconds We're also building strategic OEM and technology partnerships across AI, IoT, and cyber security for joint go to 12:12 12 minutes, 12 seconds market. Importantly, these are already operational and we have began publishing order wins to the exchanges to improve visibility and business momentum. 12:23 12 minutes, 23 seconds Geographically, India and the US continue to remain our core markets while the Middle East has emerged as a key growth focus under dedicated new regional leadership. 12:33 12 minutes, 33 seconds We are also evaluating expansion opportunities in Canada and East Africa to start with. In parallel, entity restructuring initiative including US 12:42 12 minutes, 42 seconds restructuring, KSA and Netherlands closure and the India merger are progressing steadily supported by strong 12:49 12 minutes, 49 seconds governance frameworks and structure reporting mechanism across the organization. 12:55 12 minutes, 55 seconds on leadership and governance. Both the board and management structure has evolved structurally over the last year, creating a stronger and more stable 13:02 13 minutes, 2 seconds leadership framework in place with succession planning under way with deeper operating expertise, clear accountability and better alignments 13:10 13 minutes, 10 seconds across strategic priorities, creating a stronger foundation for execution as we scale into the next phase of growth. 13:19 13 minutes, 19 seconds This was all about the past one year. 13:22 13 minutes, 22 seconds Now as we head into FY27, profitability is no longer the question for us as we have already established a more consistent profitability trajectory. 13:31 13 minutes, 31 seconds Our focus now is formally on accelerating revenue growth while maintaining margin discipline. Our FI27 13:38 13 minutes, 38 seconds strategy is structured around six pillars, six P pillars, people, process, productivity, platform, partnering, and 13:47 13 minutes, 47 seconds profitability. each driven through defined ownership timelines and review mechanisms. 13:54 13 minutes, 54 seconds This is the most structured operating plan we have created till date and I'm personally driving execution against it. 14:00 14 minutes While our strong presence in the BFSI sector continues to remain a key growth driver, we're also witnessing increasing traction across sectors like healthcare, 14:08 14 minutes, 8 seconds retail, manufacturing, education, energy and government as further strengthening our growth outlook as well. 14:17 14 minutes, 17 seconds On the revenue front, we expect a meaningful step up in FI27 driven by stronger sales execution, Cled deal 14:24 14 minutes, 24 seconds momentum, expansion across US and Middle East and gradual impact of our PPS repositioning from quarter 2 onwards. 14:32 14 minutes, 32 seconds While we are not providing a specific number at this stage, we remain confident that FI27 will be a growth year for 3i backed by a significantly 14:40 14 minutes, 40 seconds stronger foundation that we have built over the last two years. 14:45 14 minutes, 45 seconds In summary, FY26 was a year of building strong foundation and was not about any one business or function. As we move 14:53 14 minutes, 53 seconds forward, our COled approach combined with AIdriven capabilities and new age technologies will play a critical role 15:00 15 minutes in how we differentiate ourselves in this market. It is about how we operate collectively as an organization. 15:08 15 minutes, 8 seconds I also believe the leadership team structure is stronger and better aligned for execution. As we step into FA27, we 15:15 15 minutes, 15 seconds do so with greater confidence, stronger execution capability and a clear vision for the road ahead. 15:21 15 minutes, 21 seconds I would personally like to thank our shareholders, clients, partners, and all the employees of 3II for their continued 15:28 15 minutes, 28 seconds trust and commitment. I also want to acknowledge our long-standing investors who have remained supportive throughout the journey. Your faith in the company is deeply valued. 15:39 15 minutes, 39 seconds Thank you once again. I will now hand it back to the moderator for the Q&A session. 15:46 15 minutes, 46 seconds Thank you very much. We will now begin the question and answer session. Attendees can raise their hands. 15:57 15 minutes, 57 seconds Our first question comes from the line of Santa Kumaran. 16:07 16 minutes, 7 seconds Please go ahead. Hello. 16:19 16 minutes, 19 seconds Hello. Am I audible? 16:21 16 minutes, 21 seconds Yes, you are. Yeah, thank you for the opportunity and congratulation for uh 16:28 16 minutes, 28 seconds turning six uh consecutive quarters of profitability. 16:34 16 minutes, 34 seconds Uh I have about four questions. Shall I ask them all together or one by one? 16:45 16 minutes, 45 seconds Hello. 16:46 16 minutes, 46 seconds You you can ask all the question at one shot and then I'll reply to them. 16:50 16 minutes, 50 seconds Okay. Thank you. U Mr. Raj your vision is the company should be a billiond 16:57 16 minutes, 57 seconds dollar entity by 2030 but the current pace of the company and the declared order wins does not point towards that 17:05 17 minutes, 5 seconds direction our order bins are just 2 to three crores and like that. So when can 17:12 17 minutes, 12 seconds we see an actual order wins of minimum at least 15 20 crores and whenever when we can hear that and when are we going 17:20 17 minutes, 20 seconds to be going towards in the direction of your declared mission that is my first question. 17:27 17 minutes, 27 seconds Secondly, we are hearing the company has lost especially in the BPL division a number of marquee customers though those 17:36 17 minutes, 36 seconds who were with the company for a very long time and very large accounts you lost that is what the whisper in the 17:43 17 minutes, 43 seconds outsole. So what is the fact and how are you going to offset that. 17:50 17 minutes, 50 seconds Thirdly, our contingent liabilities stand at more than 230 crores that is 17:56 17 minutes, 56 seconds nearly 60% of our total market cap. What percentage of this is realistically going to be expected to crystallize in 18:05 18 minutes, 5 seconds the actual debt in financial year 27 and when can be this legacy issues of rail emudra and recently you are also just 18:14 18 minutes, 14 seconds published something about some tax demand from one of your subsidiaries all these kinds of 18:22 18 minutes, 22 seconds suspense or just surprises is keep coming up when can we just leave them all behind and go on a normal path to 18:31 18 minutes, 31 seconds the towards your vision. My fourth question, we are a totally 18:39 18 minutes, 39 seconds uh shareholder retail shareholderdriven company. There is no promoter. 85% of share shareholders are normal investors like me and others. 18:51 18 minutes, 51 seconds Not a single director or even the management has got the so-called skin in 18:58 18 minutes, 58 seconds the game. Shouldn't the board have a director's qualification that you must have these minutes of shares then only 19:06 19 minutes, 6 seconds you can be considered to be the post of director? 19:10 19 minutes, 10 seconds Shouldn't the board should come up with that kind of a mandate and for you since you are saying that financial year 27 is 19:18 19 minutes, 18 seconds going to be so profitable and we are on the path towards the dire so shouldn't the senior management also 19:27 19 minutes, 27 seconds demonstrate to the market by buying from the market a considerable amount of shares and showing your confidence. Can 19:35 19 minutes, 35 seconds we expect something like that to going to happen to uh in this financial year 27? My final final question is about the 19:43 19 minutes, 43 seconds EPS. We are a company we are keep giving the EPS very this thing and it is the share uh shareholders holding value is 19:53 19 minutes, 53 seconds keep decreasing you I can understand the the long-standing employees must be 20:00 20 minutes reminerated but even I just saw one resolution that is even people who have got a grading of one which is actually 20:09 20 minutes, 9 seconds an inapoo if he's should should be authorized to be getting 50% of vesting rights So just while the shareholders value is 20:17 20 minutes, 17 seconds reducing like that is there any plan to go for a repurchase of the shares so that the value can be maintained. These are my questions. Thank you. 20:32 20 minutes, 32 seconds Thank you Mr. Santa. Uh first of all thanks uh for acknowledging the profitability six quarters. So uh we 20:40 20 minutes, 40 seconds need wishes of all our uh well-wishes to continue this journey uh over a longer period of time. Uh coming to your first 20:49 20 minutes, 49 seconds question on the billion dollar targets the vision which we have set and uh how we are going to achieve it. uh knowing 20:58 20 minutes, 58 seconds that in FIA 26 we actually have a degrowth and we stand a little lower than where we stood around a year back when we fixed up the vision of uh 2030. 21:09 21 minutes, 9 seconds Um the vision 2030 framework we shared of roughly tripling our revenues by FI25 base by FI30. 21:18 21 minutes, 18 seconds Uh this remains our uh directional ambition. So we are not changing that uh at all at this stage. It's a medium-term 21:26 21 minutes, 26 seconds aspiration and not say not a fixed year-on-year guidance uh given to the market. Uh what has changed is not the 21:34 21 minutes, 34 seconds direction but the sequencing. Um FYI 25 and 26 we have been focusing much on cleaning up the portfolio uh exiting lot 21:42 21 minutes, 42 seconds of low margin work and stabilizing profitability. 21:46 21 minutes, 46 seconds uh that was uh that has been the strategy which I had uh communicated even in the last call as a long-term 21:54 21 minutes, 54 seconds strategy for us. We wanted a very healthy revenue pipeline and a healthy revenue base and that's what we have 22:01 22 minutes, 1 second been doing by replacing the low margin deals with the equivalent high margins or a better margin deals over a period 22:09 22 minutes, 9 seconds of time. This has created a very stronger and a more focus base to grow from now. As we move towards FI27, the 22:17 22 minutes, 17 seconds focus has shifted uh more meaningfully now to execution and scaling our core growth engines while the base has already been set. 22:27 22 minutes, 27 seconds We will not recalibrate the aspiration at this stage at all. We will continue to let performance and visibility from 22:34 22 minutes, 34 seconds the new bookings and pipelines guide how the trajectory evolves over a period of time. 22:39 22 minutes, 39 seconds I'm with you that all the new uh winnings what you have seen they are of the smaller values in the range of 22:46 22 minutes, 46 seconds around 2 cr to 5 cr with couple of them exceeding 5 crores but that's only a beginning. We have seen this uh growth 22:56 22 minutes, 56 seconds happen this this is not the growth we have seen in the first few quarters where we were struggling for building up a healthy salesunnel and then growing 23:05 23 minutes, 5 seconds our on top of it. Now we have started converting the funnel into the orders and this is just a beginning. 23:12 23 minutes, 12 seconds I don't want to make anything public as yet but there are some new new deals which is almost closed and you'll also 23:19 23 minutes, 19 seconds hear about those deals in the next few days and weeks to come. 23:25 23 minutes, 25 seconds your second question on the BPS weakness. 23:29 23 minutes, 29 seconds Um you're right and we have also made it public uh in our couple of uh messages 23:36 23 minutes, 36 seconds earlier that India BPS has been facing headwinds over the last few quarters uh which is driven largely by regulatoryled 23:44 23 minutes, 44 seconds insourcing VFSI clients uh and that has contributed to year-on-year decline seen in FI26. We 23:51 23 minutes, 51 seconds consiously did not chase lowquality volumes in line with our strategy to exit low margin work. We have lost some good accounts there. 24:02 24 minutes, 2 seconds Sorry, we lost some good accounts there and the reason for that is the uh outsourcing policies of our regulators 24:11 24 minutes, 11 seconds which is forcing the clients to look for a vendor uh uh replacement every 3 to 5 years period. 24:18 24 minutes, 18 seconds So uh and and on top of it the whole AI journey which the customers have started especially in the customer servicing and 24:26 24 minutes, 26 seconds customer operations that has also led to the decrease in the BPS business. 24:33 24 minutes, 33 seconds The one of the major reason why BPS business we are not able to scale is that we have always been focused on Indian market and the BPS and BFSI 24:41 24 minutes, 41 seconds market. We are not grown beyond these two uh markets. 24:46 24 minutes, 46 seconds From here the focus is on the stabilization and selective rebuilding through a clear approach. 24:52 24 minutes, 52 seconds Strategically pivoting to automationled domainri VPS uh where we can improve realizations 24:59 24 minutes, 59 seconds uh planning to expand into tier three or tier four locations uh to improve cost and retention strategies and selectively growing in the higher value markets such as US and list. 25:11 25 minutes, 11 seconds I've also mentioned that we're also looking for processes outside BFSI which includes finance, HR, operations, manufacturing. We're also planning to 25:20 25 minutes, 20 seconds expand into those markets. So that will take care of two problems. One from India we are now planning to expand into 25:29 25 minutes, 29 seconds uh the US and Middle East market and initial interactions are good. We already closed couple of deals over there. Though they 25:36 25 minutes, 36 seconds are very small beginnings but uh we have already closed three deals in the last uh one quarter smaller deals uh in US 25:45 25 minutes, 45 seconds and one in Middle East and we continue we'll continue to focus on those markets. Second is that we have al also 25:52 25 minutes, 52 seconds started building up the COE around the non BFSI processes which includes finance HR administration operations and other things. 26:00 26 minutes uh while some residual churn in legacy contracts cannot be ruled out we believe the bulk of the reset is been done in the BPS uh and BPS is now expected to be 26:10 26 minutes, 10 seconds more stable and higher quality contributor to the growth and uh it'll be in more measurable way 26:19 26 minutes, 19 seconds on the contingent liabilities side uh yes we have roughly around 200 code of contingent liabilities and most of them 26:26 26 minutes, 26 seconds are from the legacy tax uh issues what we have over a period of time. Uh we 26:33 26 minutes, 33 seconds have been closing one by one whatever we can uh in in the last one year we have 26:40 26 minutes, 40 seconds uh participated in the BSP scheme. Uh we closed lot of those contingent liabilities. Uh we also closed some of 26:48 26 minutes, 48 seconds those old tax legacy tax litigations. Uh we have uh we have made it public also as a part of our press release that we 26:57 26 minutes, 57 seconds had uh closed one service tax old service tax issue which could have resulted into almost 60 plus cr 70 plus 27:04 27 minutes, 4 seconds cr kind of exposure uh which we have closed it at around 5 and a half cr of final closure after the supreme court uh 27:12 27 minutes, 12 seconds uh like say intervention uh and that uh that has already been provided in FI26 financials uh and we 27:19 27 minutes, 19 seconds are we'll continue to negotiate and discuss on the penalty or interest wavers around that. 27:26 27 minutes, 26 seconds Uh this is a ongoing journey. I think contingent liability yes for our scale and size the number is high but uh uh 27:34 27 minutes, 34 seconds there I think there have been like say legacy of almost last 20 20 years where lot of issues have been open opened up and we're trying to close one by one 27:42 27 minutes, 42 seconds whatever we can close. I'm not expecting any major hit as of now at least uh based on our current visibility I'm not 27:49 27 minutes, 49 seconds expecting any huge hit to come in FI27 out of this continent clability to occur. 27:56 27 minutes, 56 seconds Uh coming to the legacy items uh the question is more on that uh you keep hearing about the rail emodra tax demand of us. 28:08 28 minutes, 8 seconds Well, we understand that Rail and Immudra are very two specific litigations or disputes what we have going through and we have been making it 28:16 28 minutes, 16 seconds very much uh like uh aware to the public as and when there is any development happening because both are uh critical 28:24 28 minutes, 24 seconds in terms of value and uh the goodwill of the company. uh the tax demand from US is one of the routine uh tax demands 28:32 28 minutes, 32 seconds which uh normally post any assessment uh you have to go through there there will be order like in India also it happens 28:39 28 minutes, 39 seconds there will be an order you go through litigation and you go through the procedures uh there might be uh some 28:47 28 minutes, 47 seconds final demand coming up which will get provided in the respective quarter as and it gets finalized uh that that's a 28:54 28 minutes, 54 seconds routine uh process in in like say any tax assessment uh uh though the value is huge but we are not expecting as of now 29:03 29 minutes, 3 seconds and we are obviously having we are going to fight about that with the authorities coming to rail and IMURA uh like we have 29:12 29 minutes, 12 seconds been declaring that those are the two things which has been open for a long time and it'll continue to be open for a reasonably long time I can tell you that 29:19 29 minutes, 19 seconds because both are in the matters of subject juries and I will not be able to comment more than that whatever we made public But uh since it is all both are 29:29 29 minutes, 29 seconds litigation matters uh one with the government authority and other one uh of a strong uh magnitude uh they will go 29:39 29 minutes, 39 seconds through their own uh long-term litigation in my opinion uh unless we we unless we can negotiate some kind of a 29:47 29 minutes, 47 seconds arbitration or uh settlement from the parties which obviously as and when it is done we'll make it public. So as other than these 29:55 29 minutes, 55 seconds two three things I'm not and there's nothing open from the past legacy matters except for the new things we'll keep coming which is more on the routine 30:03 30 minutes, 3 seconds business tax and the uh other matters u 30:11 30 minutes, 11 seconds on uh on the eoft what you have mentioned about the promoters not having a skin in 30:18 30 minutes, 18 seconds the game u I recognize that the capital structure What we have 30:26 30 minutes, 26 seconds after the 2021 restructuring which was done and after the 64 crite issue which we did in FI26 30:34 30 minutes, 34 seconds uh the the share base the share capital base has been very high almost 200 C plus and uh number of shareholders are 30:42 30 minutes, 42 seconds also huge uh on top of it uh uh our profits are not sufficient for doing any kind of a uh dividend at this stage. 30:53 30 minutes, 53 seconds age. 30:55 30 minutes, 55 seconds As the business stabilizes and it'll generate consistent free cash flows, uh the board will obviously evaluate capital return options including 31:03 31 minutes, 3 seconds dividends and if required repurchase of shares to bring back uh the share capital to reasonable levels. Uh but in 31:12 31 minutes, 12 seconds the near term I don't think we are planning to distribute any uh uh like or 31:19 31 minutes, 19 seconds return any capital at this stage. uh we uh in the near term value creation will primarily come from reinvestment of the 31:27 31 minutes, 27 seconds profits into the high return growth areas uh and rather than uh the distribution. 31:35 31 minutes, 35 seconds I also understand your concern on the ESOPs uh uh being given um to the 31:42 31 minutes, 42 seconds employees. One I I would like to tell you very clearly that ESOPs are our approach is very very tightly governed. 31:50 31 minutes, 50 seconds uh they are only used as a retention strategy and and alignment tool for the critical talent. Uh we are not done a 31:58 31 minutes, 58 seconds very broad-based ESOP composition mechanism. uh it is only given to the uh leadership above a particular level and 32:07 32 minutes, 7 seconds uh the the approved bold is managed conservatively um and uh we are not expecting any huge 32:14 32 minutes, 14 seconds dilation to happen to the overall capital knowing the base of the capital what we have uh with respect to the change what we 32:23 32 minutes, 23 seconds have proposed uh I I I don't know I I think uh you not read that uh uh circular properly uh For the person's 32:32 32 minutes, 32 seconds rating one and two, we are not planning to give any esop. So that continues to be 0%. So uh the moment the person is 32:40 32 minutes, 40 seconds rated one or two, his allocation becomes zero. uh it is only the rated three uh which is uh uh in our parliament is 32:48 32 minutes, 48 seconds known as uh met the plan uh criteria met the objectives or KS of the 32:56 32 minutes, 56 seconds individual only in that case we are upgrading it from 75% to 100%. Earlier it was if you're meeting your plan you were given 75%. We are making it more 33:05 33 minutes, 5 seconds rational by if you achieve your plan you should get uh 100% of the allocation. 33:09 33 minutes, 9 seconds That's what the thought process has been. But on top of it, we have also uh ensured to amend the scheme uh for 33:17 33 minutes, 17 seconds making it to four-year scheme instead of a three-year scheme uh which is obviously against the employees but in 33:23 33 minutes, 23 seconds favor of uh uh taking the ESOP as a broad as a targeted retention strategy 33:30 33 minutes, 30 seconds and not just a uh uh award or compensation strategy. 33:36 33 minutes, 36 seconds Uh I I hope I was able to give u uh uh answers to most of your questions. Let 33:44 33 minutes, 44 seconds me know if I missed out anything in this. 33:48 33 minutes, 48 seconds Uh thank you Mr. Ajahuja. Just uh yes, you addressed almost everything and all the best for your future endeavors. You 33:55 33 minutes, 55 seconds left one issue which if you can address that is the board members and the senior management to have to buy uh shares from 34:04 34 minutes, 4 seconds the market to show the direction and the confidence to increase the confidence. 34:09 34 minutes, 9 seconds Sure. As of now all our board me most of our board members are independent directors and so so they are not 34:19 34 minutes, 19 seconds obligated or they are not forced to buy any shares from the market because they they should remain independent and they should not have a skin in the game. Uh 34:27 34 minutes, 27 seconds for the management I agree as of now the management is getting uh shares only through ESOP schemes. I don't think uh 34:36 34 minutes, 36 seconds there are many management uh members who is buying uh from the market and holding shares but your point taken. I think 34:45 34 minutes, 45 seconds I'll put it to our uh uh NLC committee of the board and see like if we can uh have some kind of a uh not forced we 34:54 34 minutes, 54 seconds cannot force anybody but can we have some kind of a guidance or a suggestion to increase skin in the game from the directors or management side. 35:04 35 minutes, 4 seconds Okay, thank you. All the very best. Thank you, sir. 35:09 35 minutes, 9 seconds Thank you very much. Before we move on to the next question, there's something I'd like to add. Please keep the questions uh limited to two uh and fall 35:18 35 minutes, 18 seconds back in the queue and so that we can give everyone a chance since we are short in time. Uh next question comes from the line of Sanjay Kh. 35:31 35 minutes, 31 seconds You can now speak. So yeah. Can you hear me? 35:40 35 minutes, 40 seconds Yes. Yes, we can. 35:43 35 minutes, 43 seconds Yeah. Yeah. Good afternoon, Raj and uh congratulations on another quarter of positive pat. Uh my question is about uh 35:52 35 minutes, 52 seconds definitely the revenue is growing uh in a little slower speed and you already mentioned that yeah your guys are working on it. uh the profit for the Q4 36:02 36 minutes, 2 seconds is mainly uh I mean uh is uh including uh operating income as well as other income and because of the other income I 36:10 36 minutes, 10 seconds think it has really helping getting a positive pat. So my question is now as things are under control or already the 36:18 36 minutes, 18 seconds plan is there are we going to see when are we going to see operating income is going to be uh more than the expenses I 36:24 36 minutes, 24 seconds mean that will help in getting of that as well as the goal what you have set like about 36:31 36 minutes, 31 seconds 3,000 K by 2030 which is almost four times of the revenue 3.5 to four times uh so as we have to go step by step are 36:40 36 minutes, 40 seconds are we seeing that at least for FI27 can we grow at least by 20%. 36:49 36 minutes, 49 seconds Okay. Um thanks. Uh first of all coming to the operating income versus the to 36:56 36 minutes, 56 seconds other income. U I I know that in the financial audited financial we have this line called other income. uh but when 37:05 37 minutes, 5 seconds you see the details of that other income uh I we personally internally we don't treat that as other income coming from somewhere outside the operations uh most 37:14 37 minutes, 14 seconds part of our other income consist of uh uh something which is related to business and I'll explain you uh though 37:23 37 minutes, 23 seconds it is because of the accounting principle it is shown as uh part of the other income and not part of the operating income. the the biggest item 37:32 37 minutes, 32 seconds in this is the foreign exchange gain or loss. Um I I personally feel and the management also and board also personally feel that forex is a part of 37:40 37 minutes, 40 seconds the business. So it is not something which is outside the business. This is not about uh we are having for foreign investments or some legacy assets and 37:49 37 minutes, 49 seconds liabilities which we are revaluing and the profit of that is coming into the P&L for us is extended arm of our 37:56 37 minutes, 56 seconds revenue uh which is 49% is coming from US and the revalation of all that uh operating assets comes into the other 38:05 38 minutes, 5 seconds income which technically is operating uh income for us. uh and then we also have uh we can all we can always say that 38:13 38 minutes, 13 seconds okay interest is out interest we are not counting it as uh operating income that's coming mostly from the fds and 38:20 38 minutes, 20 seconds all so most part of the operating incomes comes from either other income comes from either the accounting treatments like uh as accounting 38:29 38 minutes, 29 seconds standards uh accounting or it comes from the forex gain the maximum amount actually 38:36 38 minutes, 36 seconds if if I see roughly around 60% of 70% of the business other income is coming from operating operations and not coming from 38:44 38 minutes, 44 seconds just accounting of other incomes like your uh income tax or uh income tax refunds or interest incomes or grants uh 38:52 38 minutes, 52 seconds those are excluded out of this. So I still personally feel that once you see uh when we release the retail financial you should see the break up of the other 39:00 39 minutes income and try to see we are already uh profitable from operating income point of view also uh and not just because of 39:08 39 minutes, 8 seconds other income. Uh sorry what was your second question? Second question was I think a repeat of the earlier uh things. 39:16 39 minutes, 16 seconds Uh one is that uh it's not 3,000 it's 2030. So uh the target is 2030 by 2030 39:23 39 minutes, 23 seconds which is roughly three times. U FI27 uh yes uh internal plans are very 39:30 39 minutes, 30 seconds aggressive. Uh we have done couple of investments in uh building capabilities and uh bringing the leadership team and 39:38 39 minutes, 38 seconds our execution team below them. In the last six months post the right issue uh uh funds were received we started doing the basic investments into capability 39:47 39 minutes, 47 seconds building the whole COE formation and so many other things uh and we should start seeing some results in the quarter one and quarter two of this year I'm not 39:56 39 minutes, 56 seconds putting a number you ask me a number I'm not putting in number as of now because we don't uh do and give any forward 40:02 40 minutes, 2 seconds guidance but yes uh the internal uh uh growth aspirations are uh uh much higher 40:10 40 minutes, 10 seconds uh and which should which which which should take us uh to the goal of 2030 by 2030. We are not changing that goal. We are continuing with that goal and all 40:18 40 minutes, 18 seconds our internal calculations are moving in that direction only. 40:23 40 minutes, 23 seconds Uh yeah, thank thank you Raj for the clarification. And this last question is about in the shareholding pattern it has 40:30 40 minutes, 30 seconds observed that Nvon systems has acquired more than 1.5% of this equity of uh 3II 40:37 40 minutes, 37 seconds infoch and I'm sure in this quarter they might have acquired more as the price has gone up. So I just want to understand is there any working 40:44 40 minutes, 44 seconds relationship or any uh strategic partnership or things going on with this NVICon systems? Uh so we also realize 40:54 40 minutes, 54 seconds because we keep getting those weekly reports and we keep observing if there is any major movement happening in the shareholding pattern and yes you are 41:00 41 minutes right and has acquired uh roughly around now sorry 1.5% shareholding uh which was 41:10 41 minutes, 10 seconds done I think over a period of two or 3 months uh in quarter 4 uh and after that they have not been adding I think they have been stable uh at that level for 41:18 41 minutes, 18 seconds the last I think uh 4 weeks or So actually they have sold off a little bit very small portion of their equity they 41:27 41 minutes, 27 seconds have sold also in the last two quarters two weeks uh I think once the rates were up uh to to tell you frankly I've been 41:35 41 minutes, 35 seconds in touch with the the promoter of Niccon I have spoken to him after we realized that to see whether like there is any 41:43 41 minutes, 43 seconds kind of a relationship possible to leverage on the synergies of the two businesses because they are into the similar uh kind of business and uh uh 41:51 41 minutes, 51 seconds but but I realized that I think they are looking this uh investment more from a financial investment and not a strategic investment uh and we continue to wait 42:00 42 minutes and watch on the their next thing because since they're doing a financial investment so we are also uh like not aggressively partnering with them as of 42:08 42 minutes, 8 seconds now and their operations in India also very limited uh they are mostly uh Europe based uh delivery operations 42:17 42 minutes, 17 seconds so uh yeah thank you thank you and may ask this last question. Sure. Go ahead. 42:23 42 minutes, 23 seconds Yeah, just last question is about uh the e-mudra as you already mentioned things are going on and um in e-mudra 42:31 42 minutes, 31 seconds conference call like this Q4 conference call it is mentioned by their chairman that they are in touch with 3II infoch 42:38 42 minutes, 38 seconds and they are not receiving any information uh received any information in last quarter as well as they have sent a legal notice to 3II info. So that 42:47 42 minutes, 47 seconds just some comment has made into their conference call. So just I wanted to give that information. I'm sure like you may be aware of it but I just want to give you idea and anything like is 42:54 42 minutes, 54 seconds progressing which will be benefiting uh trific. 42:58 42 minutes, 58 seconds So so uh we are also aware we keep noticing what information they are they are taking to public. Uh as of now we 43:07 43 minutes, 7 seconds are not in direct touch with them at all. uh they have sent us a legal notice and internally the board uh is discussing what what is how the legal 43:16 43 minutes, 16 seconds notice to be responded to because uh the matter is already subject to this we have already filed a complaint and the statements and all are being recorded so 43:25 43 minutes, 25 seconds at this point of time the legal notice doesn't carry any sense frankly knowing the legal process uh since the matter is already uh with the authorities uh I 43:34 43 minutes, 34 seconds would not like to comment beyond it and the legal notice once the matter is already with the authorities doesn't uh like doesn't make any sense to us. Uh 43:43 43 minutes, 43 seconds but we are still talking to our lawyers and trying to see what is the best way to handle it. From our side, we are not 43:50 43 minutes, 50 seconds in direct touch with the management as of now. 43:54 43 minutes, 54 seconds All right. Thank you. Thank you Raj. And uh you guys are really doing a great work really brought back the company on uh good operational performance. So wishing you all the best for AI27. 44:05 44 minutes, 5 seconds Thank you Sanju. Thank you. 44:09 44 minutes, 9 seconds Thank you very much. It's a request to please keep your questions limited to two so that everybody can get a chance. 44:16 44 minutes, 16 seconds Our next question comes from the line of Rishi A. You can now speak. 44:26 44 minutes, 26 seconds Yeah. Hi. Am I audible? Yes. 44:30 44 minutes, 30 seconds Hi. Uh first of all, thank you for giving me the opportunity. I just quickly shoot my questions across. uh see revenue has declined considerably 44:38 44 minutes, 38 seconds cash loss is 50C crering loss is also 50C cr after excluding foreign forex gain and covid subsidy from US auditor 44:45 44 minutes, 45 seconds has uh qualified report they have they have not covered 85% which seems to be a severe violation as per market rumors we 44:52 44 minutes, 52 seconds also hear ICA securities and IDFC has been lost uh yearly revenue of nearly 80 cr this is not informed to the stock 44:59 44 minutes, 59 seconds exchange which again seems to be a CB violation management has kind of wiped out 200 g crores cash In 3 years grass margin is only 12 12%. It looks like a 45:08 45 minutes, 8 seconds flipping business. When all the parameters are bad the admin expenses have gone up by 30%. With these you are 45:14 45 minutes, 14 seconds projecting 20 2030 by 2030. Uh is it just a big imagination and only wish visual thinking? Please provide answers to these questions. 45:24 45 minutes, 24 seconds Sure. Thank thanks Rishi. uh I think uh if you see from an independent point of view lot of these points are factual 45:32 45 minutes, 32 seconds statements and there is no disagreement to some of those things but each of those points you have to see in 45:39 45 minutes, 39 seconds isolation and then see why uh they are there uh in the current form let's talk about like cash loss 45:47 45 minutes, 47 seconds we have uh raised the uh uh like say uh rights issue the equity capital because we were into the working capital cycle 45:55 45 minutes, 55 seconds issues And uh once the funds were raised for the working capital obviously it will result into uh usage of those funds for 46:03 46 minutes, 3 seconds the working capital which includes paying to our vendors and employees in time which was not happening till around whatever 9 months back. There was a 46:12 46 minutes, 12 seconds delay of almost five to four five to 6 months to the payment of vendor and uh paying uh salary delays and all. So all 46:19 46 minutes, 19 seconds this has been corrected in the current year which has resulted into overusage of cash to bring vendors and employees 46:26 46 minutes, 26 seconds in line with the payment terms which we have agreed to. And so the cash loss is not only this year cash loss but it is 46:34 46 minutes, 34 seconds the accumulation of the uh few years of uh non-payments to the vendors and employees in time and that's what it resulted into cash loss and that is 46:42 46 minutes, 42 seconds linked to the your other point on the 200 cr like in the last 3 years and I'm assuming you're talking about a period between 22 to uh 21 to 24 when the 46:52 46 minutes, 52 seconds previous management was in place and and I'm assuming I'm sure like say if you're investor or any investor before that 46:59 46 minutes, 59 seconds would have asked that kind of question to that time management that why there is a loss and uh board was still okay but having said that so I'm not going to 47:07 47 minutes, 7 seconds get into the past that why there was a 200 cr loss uh that was all done in by 24 when we booked the huge loss and 47:14 47 minutes, 14 seconds writeoffs in 24 and 2526 is when we the new management the new board is taken over and then we have corrected most of 47:21 47 minutes, 21 seconds the things I've already explained operating loss I think you are reading it without other income and uh internally we uh when when We review our 47:30 47 minutes, 30 seconds own performances. We include certain things like forex gain and loss uh and both side loss and gain. We take it as a 47:39 47 minutes, 39 seconds part of our operations only. Uh though accounting wise it comes under other income. Uh I have also mentioned about 47:46 47 minutes, 46 seconds revenue degrowth. Uh revenue degrowth was part of our strategies. uh for the last I think uh three calls whenever I've been there we have been making it 47:53 47 minutes, 53 seconds clear that uh uh the previous management has uh got into a lot of this low margin uh loss making deals zero margin deals 48:03 48 minutes, 3 seconds uh which we are trying to correct and then we we had told the market in the beginning of the year itself that there 48:10 48 minutes, 10 seconds will be a deg growth this year and this is not a surprise or a unknown fact to anybody. We have said that in very clear terms that there will be degrowth 48:18 48 minutes, 18 seconds because we want to exit loss making and zero margin deals uh or lossm deals. 48:24 48 minutes, 24 seconds uh we we are internally I've already mentioned about 2030 by 2030 it's not a dream it's a yes it is stretch it is uh 48:33 48 minutes, 33 seconds a wish it is uh uh it's a far off uh like uh target uh but uh we are working 48:42 48 minutes, 42 seconds the on like say we have worked a lot in the last 24 months on creating execution plan uh putting everything in place 48:49 48 minutes, 49 seconds cleaning up all the legacy issues um getting the funding done through right issue uh and so many other things we 48:56 48 minutes, 56 seconds have done uh to set the pace right so that we can uh do a quick start from here onwards and I think we are ready 49:04 49 minutes, 4 seconds now um yes we have lost some of the couple of accounts I don't want to mention client's name because they are under confidentiality agreements but I 49:13 49 minutes, 13 seconds can tell you very clearly that um they are um it is uh not that we have lost those contracts uh we had the contracts 49:22 49 minutes, 22 seconds valid only till particular date and they are still there as on 31st March both the contractors still valid uh they will go over the period of the next few 49:30 49 minutes, 30 seconds months uh and they are part of the routine uh vendor 49:36 49 minutes, 36 seconds u uh what do you say vendor uh churning the vendor churning guidelines of RBI 49:43 49 minutes, 43 seconds and SEBI and so many other regulatory authorities uh not that and and we are very clear and we have been in touch with the highest authorities over there. 49:54 49 minutes, 54 seconds Uh they are not the loss of clients, they are loss of contracts. Uh which means that we are still talking to them 50:00 50 minutes and we'll still come back uh to them uh uh with the other contracts and other revenue opportunities within those 50:07 50 minutes, 7 seconds companies. Uh they have churned because there is a regulatory guidelines to keep churning the vendors every 3 to 5 years based on the evaluation and the risk 50:15 50 minutes, 15 seconds assessment of the risk appetite of those companies. But it is not that the relationship has been finished. 50:21 50 minutes, 21 seconds relationship he continues to be on. It is not a delivery issue. It is not a service quality issue. Um it is it is 50:30 50 minutes, 30 seconds purely driven by uh the uh regulatory guidelines and uh which has led to these 50:38 50 minutes, 38 seconds contract closures and they are not contract loss and then you mentioned about SEI this thing. are not the contracts lost their period had ended. 50:45 50 minutes, 45 seconds The contract was for a particular period. The period has ended its own natural u uh period. So as per 50:54 50 minutes, 54 seconds guidelines there is no need to report if the contract is ending as per the contract terms. Uh only the cancellations or 51:02 51 minutes, 2 seconds uh any uh like uh like say if there's a dispute with the customer those only gets uh uh announced. uh these are part 51:11 51 minutes, 11 seconds of the ordinary uh businesses like when we say that 90% of the business or 98% of the business gets renewed this is the part of the balance 10% which doesn't 51:19 51 minutes, 19 seconds get renewed and this is normal for us we keep losing some business we keep winning some other business uh good part 51:27 51 minutes, 27 seconds as far as I'm concerned we not lost the client relationship is still on and we are still talking about some other projects with them with the same client 51:35 51 minutes, 35 seconds uh and uh the fact is that like we also got almost 80 plus logos in this year. 51:42 51 minutes, 42 seconds Uh uh so the for us winning logos and losing some businesses is part of our routine business. So I'm not concerned. 51:51 51 minutes, 51 seconds Yes, they were big account. I'm not trying to underplay here. Uh those are big accounts. The number you mentioned are like on a higher side but little 52:00 52 minutes lower than that. Yes, that's a loss but uh I'm not uh concerned as of now. 52:08 52 minutes, 8 seconds Hello. Yes. 52:10 52 minutes, 10 seconds Another quick question. Uh sir, on the 80 plus logos that you're talking about, what would be the amount that we'll be winning? 52:18 52 minutes, 18 seconds Yeah. 52:19 52 minutes, 19 seconds Okay. The total order value against these 80 accounts is roughly around 80 crores. 77 to be precise. Um uh it's 52:27 52 minutes, 27 seconds around 77 cr of the new business. But some of these accounts at least at least like say 10 of these accounts 52:35 52 minutes, 35 seconds has a huge potential. uh and uh like this is only initial like I was giving example of the BO business. We got three 52:43 52 minutes, 43 seconds clients over there in US. Uh they all started to experiment with us. They started with five seats and 10 seats. Uh and and uh but there is a potential is to go up to 100 plus seats over there. 52:54 52 minutes, 54 seconds Uh we started with one client uh which which we made a public uh also make it public because we not mentioned the name. We started with the initial 53:03 53 minutes, 3 seconds understanding of around 70 uh FT equivalent uh IT services and we are already now ramping up to around 130. So 53:12 53 minutes, 12 seconds initial order booking was 77 cr for these 80 clients but uh all of them has a huge potential to grow as long as we continue to deliver well. 53:23 53 minutes, 23 seconds Yeah. Also quickly on the qualified report uh we don't see a coverage of 85%. 53:27 53 minutes, 27 seconds Yeah. No so so requirement is 80% and we are fully compliant. So there is no qualification on this topic. I don't know from where you were reading that 53:36 53 minutes, 36 seconds the SE requirement 80% covering 80% that check has been uh there from the beginning. We have never defaulted on 53:43 53 minutes, 43 seconds any of the compliances or SABI guidelines on in this regard. Um yes there are qualifications which we have explained. Uh there are couple of 53:52 53 minutes, 52 seconds qualification which are all pertaining to legacy uh opening balances and all. 53:56 53 minutes, 56 seconds There is no new uh qualification which has come in this year. the old old legacy uh because there are losses some 54:04 54 minutes, 4 seconds there are some losses booked in some of those uh subsidiaries which is making it like say is it a uh long-term business 54:13 54 minutes, 13 seconds sustainability issue for those branches uh which is the legacy issue and then we are evaluating and we continue to take actions to bring them back to the track 54:21 54 minutes, 21 seconds but there is nothing new which has got added this year on the qualification side also 54:28 54 minutes, 28 seconds thanks a lot for the responses Mr. Thank you. Thank you. 54:32 54 minutes, 32 seconds Thank you very much. Please take a note that the questions uh in the chat will not be addressed. It's a request to get 54:39 54 minutes, 39 seconds in the queue. Our next question will be coming from the line of Sanjie Patra. 54:47 54 minutes, 47 seconds Sir, you can now speak. 54:52 54 minutes, 52 seconds Uh thank you so much ma'am for giving the opportunity to speak and uh first of all I would like to congratulate the whole team of three info. Thank you so 55:00 55 minutes much Mr. Huja for addressing the investors. Uh I would like to say arrival 55:08 55 minutes, 8 seconds is is uh was a big hope for all of us and still we are hoping it will be a turnaround story. Now uh I have two 55:15 55 minutes, 15 seconds questions. Question sir uh it comes from annual operating uh plan. I mean targets 55:23 55 minutes, 23 seconds or execution. What were the exact AOP targets for uh FI2526 across revenue I beta net profit new uh client 55:32 55 minutes, 32 seconds acquisition EPS growth AAA growth large deals and which of these targets were achieved and which were missed? If 55:39 55 minutes, 39 seconds targets are missed, what were the primary reasons and uh were these external uh were these external market 55:47 55 minutes, 47 seconds issues or because of the internal execution failures? What are the corrective actions for these all? Can you please guide on this s? 55:56 55 minutes, 56 seconds Okay. Thanks u uh Sanjay. 56:00 56 minutes uh on the annual operating plans since we don't uh since the annual operating plan is not in the public domain I can only tell you the categories rather than 56:08 56 minutes, 8 seconds sharing the exact numbers uh which have missed revenue targets for sure. 56:15 56 minutes, 15 seconds uh our target was uh uh to show a net almost stable uh numbers or little 56:22 56 minutes, 22 seconds higher than the stable numbers of the last FI25 numbers but we have obviously not grown to that an extent and uh uh so 56:30 56 minutes, 30 seconds so that's the miss target profitability we have actually overachieved uh so uh and we have overachieved because of our 56:38 56 minutes, 38 seconds control on a lot of costs what we have done uh despite uh the revenue being down we have improved on our operating margins as well as reduced cost. Uh just 56:48 56 minutes, 48 seconds to tell the team here that US tax refund and were also planned as a part of the uh this one. So that's not a windfall 56:55 56 minutes, 55 seconds gain for us that was already part of that was part of the annual operating plan. So on profitability uh IATA as 57:03 57 minutes, 3 seconds well as PAT we have done better than uh our internal plan. uh we don't have a separate uh uh target for large deal 57:10 57 minutes, 10 seconds wins but the one thing which we have failed uh is the growth part which which anyway I've just said as a topline heading but the new order booking uh has 57:18 57 minutes, 18 seconds been weak uh and that is mainly because of the weak sales team which we corrected in the last four five months now which since I have taken over 57:26 57 minutes, 26 seconds directly that role we have reworked on the whole team uh we have got new leaders the second line leaders in in 57:33 57 minutes, 33 seconds the team we are reestablishing the whole uh uh sales framework. We have got some consultants to help us in uh setting up 57:41 57 minutes, 41 seconds the sales processes, the salesunnel creation, the reviews and selling techniques and everything. So we have got uh some work done over there in the 57:48 57 minutes, 48 seconds last four five months. We have got the new leadership team in the Middle East. 57:52 57 minutes, 52 seconds Uh you would have seen the press releases Jakish has joined us uh with the old hand uh Middle East strong 58:00 58 minutes person and then the initial signs are very very positive. As of now we have started looking at expansion into uh 58:06 58 minutes, 6 seconds East Africa and uh uh Canada. We have got one one person each looking at the sales of those at this location. We 58:14 58 minutes, 14 seconds built up a sales team in US uh while we continue to build sales team in India and then we we continue to fill up those gaps of the leadership as we uh go 58:24 58 minutes, 24 seconds forward uh in Asia Pacific. Thailand has been one of the things where we said we'll grow. uh we have not grown uh again the 58:32 58 minutes, 32 seconds same revenue issue uh but there also the things are in better shape now in the last one quarter where we have got the new sales uh person over the two new 58:41 58 minutes, 41 seconds sales people here and the initial uh things are good so uh it's it's a mix of back I will not say that we have achieved all our objectives there are 58:50 58 minutes, 50 seconds still uh I think we we we couldn't achieve many of them some of them were more execution issues like sales we took 58:58 58 minutes, 58 seconds little longer time than we were expecting to set up the team and then built up the funnel. I think it it took more than what we were expecting uh and 59:06 59 minutes, 6 seconds part of that was also because of uh not being able to attract the talent in the first 6 month of the year uh 59:15 59 minutes, 15 seconds because of our cash flow issues and delaying salaries. So that was the issue of attracting good talent which got corrected but I think it there's still 59:23 59 minutes, 23 seconds some little bit of uh hangover over there uh of the old uh cash flows still uh so mix of things I 59:32 59 minutes, 32 seconds will put I don't think that we have got impacted uh largely because of any external things uh US small impact but 59:40 59 minutes, 40 seconds then that's business as usual I'm not seeing that some of the government contract which we're doing was was big contracts for us 59:47 59 minutes, 47 seconds they had got into a little bit hibernation because of the government policies and funding issues in US for the government departments and projects. 59:55 59 minutes, 55 seconds Uh in Middle East in the last uh two months there have been little bit of uh headwind because of whatever is 1:00:03 1 hour, 3 seconds happening in Middle East. Uh but we have not seen much of the ground level impact. Again I will call it as more of 1:00:11 1 hour, 11 seconds ordinary business issues. As of now business is still going on. it is not growing the way because of the people being little bit cautious of whatever is 1:00:20 1 hour, 20 seconds happening in US and Middle East. Uh we don't have any presence in Russia side. 1:00:24 1 hour, 24 seconds So we're not concerned with Russia, Ukraine, whatever has happened. But overall I think economy uh conditions people have been in little backseat to 1:00:33 1 hour, 33 seconds delay decisions and not take aggressive calls and that has impacted but I think that's this business cycle which we have to live with anyway. 1:00:44 1 hour, 44 seconds Okay. Okay, I have one more small question if you allow me to ask. Sure. May I ma'am? 1:00:50 1 hour, 50 seconds Uh sir, uh what would normalize profitability look like excluding forex gains, ERTC grant income and onetime adjustments? 1:00:58 1 hour, 58 seconds Can you please uh throw some light on this as well? Uh 1:01:04 1 hour, 1 minute, 4 seconds uh to tell you frankly uh we we have uh we have given a guidance. We have given 1:01:12 1 hour, 1 minute, 12 seconds a guidance at that uh when we given a vision we said that we want we will be at a single digit higher singledigit uh uh profitability numbers by 2030. 1:01:22 1 hour, 1 minute, 22 seconds uh we are much lesser than that for sure as of now roughly around if you exclude that US grant uh uh I think we are at 1:01:30 1 hour, 1 minute, 30 seconds roughly around 4% uh uh number AITA and uh we want to take that 4% AITA levels 1:01:39 1 hour, 1 minute, 39 seconds to our internal target is to take it to around early teens which is 13 14% and par levels of higher single digit which 1:01:47 1 hour, 1 minute, 47 seconds is around say 8 9% 10% levels that has been the guidance as per the vision and we still stand by with that number. 1:02:01 1 hour, 2 minutes, 1 second Thank you very much. 1:02:03 1 hour, 2 minutes, 3 seconds Due to due to time constraint, this would be our last question. I would like to hand 1:02:11 1 hour, 2 minutes, 11 seconds over the call to Mr. Auja now for the closing remarks. 1:02:18 1 hour, 2 minutes, 18 seconds Okay. Um u once again I think I'd like to repeat that very very thankful to the investors who has given me this 1:02:25 1 hour, 2 minutes, 25 seconds opportunity to uh like I think one of you said the turnaround story. Uh so I I'll be happy that this actually turns 1:02:33 1 hour, 2 minutes, 33 seconds out to be a turn around story and we'll be happy to lead this uh story for the market. Thank you once again everybody 1:02:41 1 hour, 2 minutes, 41 seconds and uh and thanks for the your wishes for the good FY27 and uh we'll keep 1:02:49 1 hour, 2 minutes, 49 seconds connecting. I think this time we'll do it a little more often. Uh last year we took a little break. Uh but uh this year we we are planning to do quarterly calls 1:02:57 1 hour, 2 minutes, 57 seconds as were doing it earlier and we'll catch up once again in the next quarter. Thank you everybody. 1:03:04 1 hour, 3 minutes, 4 seconds Thank you very much. You can reach out to the investor relations team N&M nextgen advisory at research the rate 1:03:13 1 hour, 3 minutes, 13 seconds cocao.com for questions. 1:03:17 1 hour, 3 minutes, 17 seconds Uh on behalf of 3i infoch limited that concludes this conference. Thank you for joining us.