Affle 3i Ltd — Q4 FY26

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

0:01 1 second Ladies and gentlemen, good day and welcome to the FL 3A Limited Q4 and 12 month FI 2026 earnings conference call hosted by Ambedut Capital. 0:12 12 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:21 21 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:28 28 seconds your touchtone phone. Please note that this conference is being recorded and now the conference Mr. Ashwin Mata from 0:35 35 seconds Ambit Capital. Thank you and over to you sir. 0:39 39 seconds Thank you. Good morning everyone. On behalf of Ambit Capital, we welcome you all to the Q4 and 12 month FY26 0:47 47 seconds conference call of Apple 3i Limited. I take this opportunity to welcome the management of Apple 3i Limited 0:55 55 seconds represented by Mr. Anush Kana Shoha who chairperson MD and CEO of the company and Mr. Kapil Wutani who is the chief 1:03 1 minute, 3 seconds financial and operations officer of the company. Before we begin with the discussion, I would like to remind you that some of the statements made in 1:11 1 minute, 11 seconds today's conference call may be forward-looking in nature and may involve some risks and uncertainties. 1:17 1 minute, 17 seconds Kindly refer to the slide two of the company's earnings presentation for a detailed disclaimer. I will hand over 1:24 1 minute, 24 seconds the call to Mr. Anoj Kana for his opening remarks. Thanks and over to you Anoj. 1:34 1 minute, 34 seconds Thank you. Good morning everyone and thank you for joining the call today. I trust all of you are keeping in good 1:40 1 minute, 40 seconds health. Apple's growth story is of consistent compounding for the last 5 years. 1:47 1 minute, 47 seconds We have delivered on our medium-term guidance across both topline and profitability on the back of our robust 1:53 1 minute, 53 seconds AI powered consumer platform stack. FYI 2026 has been a strong foundational year in our 3II journey. As the first full 2:02 2 minutes, 2 seconds year of our third decade as Apple 3i Limited, we have advanced our vision with disciplined execution and clear 2:09 2 minutes, 9 seconds strategic intent. We are firmly on course to deliver on our medium-term guidance of 20% CAG year as we progress towards our 10x decadel growth vision. 2:20 2 minutes, 20 seconds We concluded another year on a remarkable note, registering our 13th consecutive quarter of sequential topline growth despite a challenging 2:29 2 minutes, 29 seconds macro environment. In Q4 FI 2026, we delivered revenue of INR 7.24 24 2:36 2 minutes, 36 seconds billion, an increase of 20.3% year-on-year, sustaining the growth momentum that has defined Apple's trajectory over the past years. Our 2:45 2 minutes, 45 seconds continued focus on improving operational efficiency and productivity translated into a beta of INR 1.61 billion, growing 2:54 2 minutes, 54 seconds over 20.3% year-onear. PAT stood at INR 1.2 2 billion increasing by 16% 3:01 3 minutes, 1 second year-onear with the growth remaining relatively subdued given our lower effective tax rate in the base quarter last year. Our profit before tax from 3:10 3 minutes, 10 seconds operations excluding other income grew in line with the beta at 20.8%. 3:16 3 minutes, 16 seconds Our CPCU business continued to scale delivering 120.3 million conversions at a CPC rate of INR60 translating into CPC 3:25 3 minutes, 25 seconds revenues of INR 7.21 billion. Our growth has been consistently broad-based across key industry verticals and geographies. 3:34 3 minutes, 34 seconds India and global emerging markets together contributed 71.6% of our revenues while growing by 21.2% 3:41 3 minutes, 41 seconds year-on-year. Our developed markets delivered a resilient performance growing 18% year-onear and contributed 28.4% of our revenues in Q4 FY 2026. 3:53 3 minutes, 53 seconds This growth was achieved despite some temporary softness in select markets and verticals during the quarter due to the geopolitical events. However, our growth 4:02 4 minutes, 2 seconds was driven by disciplined sales efforts, deeper customer engagements, and new logo additions. 4:14 4 minutes, 14 seconds Ladies and gentlemen, the line for the management has been disconnected. Please stay connected while we get them back. 5:16 5 minutes, 16 seconds Wonder. 5:52 5 minutes, 52 seconds Ladies and gentlemen, thank you for being on hold. The management has been reconnected. Thank you and over to you sir. 6:00 6 minutes My sincere apologies for the disconnection and the disruption. I will re um restart from I believe the last 6:08 6 minutes, 8 seconds line that was heard was that our CPC revenue of INR 7.21 billion was achieved. Our growth has been 6:15 6 minutes, 15 seconds consistently broad-based across key industry verticals and geographies. 6:20 6 minutes, 20 seconds India and global emerging markets together contributed 71.6% of our revenues while growing by 21.2% 6:28 6 minutes, 28 seconds yearonear. Our developed markets delivered a resilient performance growing 18% year-on-year and contributed 28.4% of our revenues in Q4 FYI 2026. 6:39 6 minutes, 39 seconds This growth was achieved despite some temporary softness in select markets and verticals during the quarter due to the geopolitical events. However, our growth 6:48 6 minutes, 48 seconds was driven by disciplined sales efforts, deeper customer engagements, and new logo additions. We continue to unlock new avenues for growth, further 6:56 6 minutes, 56 seconds strengthening our position as a trusted, privacy compliant, and resultsdriven platform. For the full year, we 7:03 7 minutes, 3 seconds delivered revenues of INR 27.1 billion, a growth of 19.5% year-on-year with a VA 7:10 7 minutes, 10 seconds of INR 6.1 billion at a robust growth of 26.3% year-onear and PAT of INR 4.55 7:18 7 minutes, 18 seconds billion growing 19.1% year-onear. These outcomes are underpinned by our continued investments in AI and platform 7:26 7 minutes, 26 seconds innovations, enhancing camping effectiveness, conversion quality, and operating efficiency. 7:32 7 minutes, 32 seconds During the year, we further augmented our capabilities through the integration of Optics AI Nico into our consumer 7:39 7 minutes, 39 seconds platform stack, driving improvements in creative optimization and automated campaign management. We are deepening 7:46 7 minutes, 46 seconds our AI native capabilities across the organization with focused efforts on upskilling our teams and embedding AI into day-to-day workflows, enabling 7:55 7 minutes, 55 seconds higher productivity and more effective execution. 8:00 8 minutes This quarter we have also featured three customer approved case studies across key industry verticals in our earnings presentation. The first case study 8:09 8 minutes, 9 seconds highlights our capabilities in driving high value iOS shoppers conversions for a quick commerce player in the US 8:17 8 minutes, 17 seconds leveraging our ability to target high lifetime value users at key intent moments to drive firsttime purchases. 8:25 8 minutes, 25 seconds The second case study focuses on driving existing gamers conversions for a global gaming advertiser where we boosted 8:32 8 minutes, 32 seconds repeated conversions and ROI through AIdriven audience modeling and interactive creatives. The c the third case study highlights our ability to 8:41 8 minutes, 41 seconds scale new user conversions and maximizing ROI for an Indian fintech customer leveraging ondevice inapp 8:49 8 minutes, 49 seconds premium placements through our AI powered intent and recommendation engine and dynamic creative optimization. 8:56 8 minutes, 56 seconds Apple continues to be recognized as a technology thought leader across industry forums. Our platforms have ranked amongst the top ROI driving AI ad 9:06 9 minutes, 6 seconds partners and growth leaders globally in the singular ROI index 2026 earning several other placements across various 9:13 9 minutes, 13 seconds categories. We also received several accolades across leading industry forums during the year. Notably, the best 9:20 9 minutes, 20 seconds Martekch platform of the year along with five other accolades at the DigiXX summit and awards 2026, most effective 9:28 9 minutes, 28 seconds tech platform at the Maddis and wins across categories in the 16th India digital awards. We continued our efforts 9:36 9 minutes, 36 seconds to take strongest strides in ring sensing our technology mode. We received five new patent grants during the year, 9:43 9 minutes, 43 seconds taking our comprehensive IP portfolio to 18 unique patents granted, 21 filed and 9:50 9 minutes, 50 seconds pending with over or around 300 unique enforcable patent claims. Our patents span across fraud intelligence, human 9:59 9 minutes, 59 seconds versus non-human distillation, precision targeting, contextual and gesture-based advertising, and next generation AI 10:07 10 minutes, 7 seconds native ads and engagements across key industry verticals. The breadth and depth of this position or portfolio of 10:15 10 minutes, 15 seconds our IP is unique and defensible from the standpoint and the vantage point of the digital advertising. 10:22 10 minutes, 22 seconds Can you still hear me? Hello. Yes, we can hear you. 10:29 10 minutes, 29 seconds Thank you. The breadth and depth of this position with the unique and defensible IP 10:36 10 minutes, 36 seconds ensures that when the digital ecosystem continues to evolve and it is evolving rapidly. We have been futurep proofing our business for the next phase of digital advertising growth. 10:47 10 minutes, 47 seconds As we look forward, the structural tailwinds of our efforts in FI 2026 are compelling. We see global ad spends 10:55 10 minutes, 55 seconds rising with AI expanding the frontiers of ROI based, returnsbased advertising in ways that will fundamentally reshape how brands engage and convert consumers. 11:05 11 minutes, 5 seconds These are structural shifts that play directly to Apple's core strengths. our firstparty data intelligence algorithms, 11:13 11 minutes, 13 seconds unique IP on ads and audience intelligence, and our deeply verticalized approach across key industry verticals and geographies 11:21 11 minutes, 21 seconds collectively positions us to capture a disproportionate share of this growing opportunity. We are future ready and we 11:29 11 minutes, 29 seconds remain agile and steadfast in our commitment to delivering sustainable profitable growth and creating enduring value for all our stakeholders. 11:39 11 minutes, 39 seconds Lastly, on inorganic efforts, we continue to actively pursue growth opportunities that are strategically aligned with our three vision to further 11:48 11 minutes, 48 seconds bolster our readiness in closing the deals. Our board has approved a preferential issue of equity shares to 11:54 11 minutes, 54 seconds strengthen our balance sheet. Post our shareholders approval, our corporate promoter, Apple Holdings, will invest to 12:01 12 minutes, 1 second acquire 7.4 4 million warrants at INR 1,487 totaling to approximately INR 11 billion 12:11 12 minutes, 11 seconds with 25% upfront payment. This will ensure that we are well capitalized and ready to move swiftly this year on the 12:19 12 minutes, 19 seconds right acquisition opportunities. This is a proactive step towards executing our inorganic growth strategy with the 12:26 12 minutes, 26 seconds calibrated discipline and conviction that has defined our organic growth journey. With that I now hand over the call and discussion to our CFO Kapil 12:35 12 minutes, 35 seconds Brhani to discuss the financials. Thank you and over to you Gapil. 12:40 12 minutes, 40 seconds Thank you Manage. Wishing everybody a good day and hope all of you are keeping safe and well as we turn the page from 12:48 12 minutes, 48 seconds financial year 2026 to financial year 2027 in Apple's consistent story. We do 12:55 12 minutes, 55 seconds with we do so with a greater conviction concluding FY26 on a stronger note for the full year on consolidated basis. We 13:04 13 minutes, 4 seconds achieve revenue of 27.09 billion representing 19.5% yearon-year increase as our unique ROI 13:13 13 minutes, 13 seconds linked CPC business model continues to be in a high growth momentum. Our sustained focus on operational 13:20 13 minutes, 20 seconds efficiency and profitable growth translated into aa of INR 6.10 billion for the full year registering a robust 13:29 13 minutes, 29 seconds 26.3% yearon-year growth with a margin of 22.5% on an improvement of 120 basis 13:37 13 minutes, 37 seconds point year on year. We achieved operating cash flows of INR 5.02 02 billion during the year increasing by 13:45 13 minutes, 45 seconds 25% CAGGR over last 5 years. This underscores the quality of our earning our discipline working capital 13:54 13 minutes, 54 seconds management our consistent ability to convert profitable growth into strong cash flows. 14:01 14 minutes, 1 second Our patch for the year stood at INR 4.5 billion an increase of 191 19.1% yearon 14:08 14 minutes, 8 seconds year with a pad margin expanding to 16.3% versus 16.2 2% in financial year 2025 despite lower other income during 14:17 14 minutes, 17 seconds the year. Our profit before tax from operations excluding other income stood at INR 4.80 billion for the year growing 14:26 14 minutes, 26 seconds 28.5% yearon year outpacing our growth and reflecting an underlying strength of our core business from operations. 14:36 14 minutes, 36 seconds Now coming to for f of financial year 2026 there were some macro challenges due to geopolitical events which required recalibration. Despite this we 14:45 14 minutes, 45 seconds achieved our 13th consecutive quarteron quartarter topline growth. 14:50 14 minutes, 50 seconds On the consolidated basis for the quarter the revenue stood at INR 7.24 billion registering a year growth of 14:59 14 minutes, 59 seconds 20.3% and a sequential growth of 1%. We were able to sustain balance growth across India and international markets 15:07 15 minutes, 7 seconds on an adjusted basis. Our India revenue grew by 19.5% yearon year. World develop market increased by 18% yearonear and 15:15 15 minutes, 15 seconds emerging market registered a robust growth of 22.3% yearon year. 15:21 15 minutes, 21 seconds We recorded a bit of INR 1.61 billion for the quarter registering a growth of 20.3% 15:28 15 minutes, 28 seconds yearonear. Our ribbit margins sto 22.3% broadly in line with new last year. In 15:36 15 minutes, 36 seconds terms of OPEX, our inventory and data cost to that 63.3% of the revenues for the quarter an 15:43 15 minutes, 43 seconds increase of approximately 90 basis point sequentially. 15:47 15 minutes, 47 seconds Our employee benefit expenses remain largely flat as we continue to leverage our ongoing investment in AI and 15:54 15 minutes, 54 seconds innovation driving greater productivity across teams and operations. Our other expenses declined by 4.3% sequentially 16:03 16 minutes, 3 seconds reflecting a natural moderation in business promotion equity following a sequentially active quarter 3. We 16:11 16 minutes, 11 seconds achieved approximately four tracks of INR 1.4 billion during the quarter an increase of 19.5% yearonear and 1.3% 16:21 16 minutes, 21 seconds quarteron quarter. Our profit after tax stood at INR 1.2 2 billion marking an 16:27 16 minutes, 27 seconds increase of 16% year-on-year and2% on quarteron quarter basis. The pad growth 16:34 16 minutes, 34 seconds in percentage terms is subdued on account of lower tax rate in quarter poolool last year. However, on a full year basis, our ETR was in line at 18.6% 16:43 16 minutes, 43 seconds versus 18.3% last year. We continue to prioritize efficient working capital management and as such there were no 16:52 16 minutes, 52 seconds material changes in collection risk during the quarter. Building on the five year consistent and profitable growth, 16:59 16 minutes, 59 seconds we remain confident and resilient of our we remain confident of resilience of our business model and strength of our AI 17:07 17 minutes, 7 seconds powered consumer platform stack to sustain this momentum through FI27 and beyond. Even as the global environment 17:14 17 minutes, 14 seconds continues to present new challenges and opportunities in equal measures, our disciplined financial management supported by healthy balance sheet and 17:22 17 minutes, 22 seconds robust operating cash flows provide strong foundation to capture emerging opportunities ahead. With this I end our 17:29 17 minutes, 29 seconds presentation. Let us please open the floor for questions. 17:35 17 minutes, 35 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 17:42 17 minutes, 42 seconds star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 17:52 17 minutes, 52 seconds requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question cue assembles. 18:27 18 minutes, 27 seconds The first question is from the line of Ashwin Ma from Amit Capital. Please go ahead. 18:33 18 minutes, 33 seconds Yeah, thanks for the opportunity. Uh so I think one question in terms of how is the comp competitive dynamics evolving 18:40 18 minutes, 40 seconds in the genai era especially from wallet guard wallet gardens as well as the geni natives uh and while we've talked about 18:49 18 minutes, 49 seconds uh on the creative side the optics platform helping us but on the campaign management and the targeting side uh how 18:57 18 minutes, 57 seconds are things changing versus earlier uh and what are our priorities in terms of investments there. 19:07 19 minutes, 7 seconds Thanks Ashwin. Regarding the competitor uh ecosystem evolving uh you know there's not any uh no significant 19:14 19 minutes, 14 seconds change. I think all of the competitors are you know responding towards uh AI in their own sort of initiatives and ways 19:21 19 minutes, 21 seconds and you know largely trying to do what is uh appropriate and obvious at the moment. I would say that the competitive 19:28 19 minutes, 28 seconds edge that Apple has versus let's say most of the other competitors is that we are working with the advertisers 19:35 19 minutes, 35 seconds directly. We are integrating uh you know as part of our CPC unique business model deeper conversion level first party data 19:44 19 minutes, 44 seconds integrations with our advertisers directly and I think that makes us a very unique position. What also is different and unique about us is the 19:53 19 minutes, 53 seconds fact that we are across all the top key industry verticals and our platform is being verticalized 20:00 20 minutes deeply integrated with the advertisers across those unique verticals. So it's not just like a horizontal solution. we are very focused on those industry 20:09 20 minutes, 9 seconds verticals and our um premium uh sort of positioning for that and even our let's say AI algorithms or AI related 20:17 20 minutes, 17 seconds experience are are deeply verticalized for for those uh industry verticals. So that gives us another sort of differentiation and edge in terms of um 20:27 20 minutes, 27 seconds you know how we are performing uh versus the competition. I find that across uh e-commerce, entertainment, fintech, food 20:35 20 minutes, 35 seconds tech and now increasingly also in healthcare, we are seeing some real competitive advantages of our you know verticalized approach and direct to 20:42 20 minutes, 42 seconds advertisers approach. Um it'll be hard for competitors to respond to that because a lot of them are not on CPCO business model as you already know and a 20:51 20 minutes, 51 seconds lot of them are also not directly deeply integrated with the advertisers first party data. So I think that makes a big difference. In terms of the wall 20:59 20 minutes, 59 seconds gardens, I would say the um you know on on AI side the the automation tools that the wall gardens are providing I think 21:06 21 minutes, 6 seconds that's definitely helping them. You can see it from the results and that's across the board trend that we would see that you know in adtech AI will be a 21:15 21 minutes, 15 seconds clear tailwind whether it is the war gardens whether it is Apple whether it is the other competitors then the main question is that who will who will 21:22 21 minutes, 22 seconds capture more of this you know increasingly expanded uh AI oriented digital ecosystem and I think on that 21:29 21 minutes, 29 seconds our approach is very clear direct to advertisers first party integration CPCU business model and deep verticalization 21:38 21 minutes, 38 seconds to ensure that there's a premium u you know integration that is provided that's not easily comparable or uh you know or replaceable with any other competitor. 21:48 21 minutes, 48 seconds So that's how I would look at the competitive landscape in terms of our own uh you know technology evolution with optics AI Nico AI we are seeing 21:57 21 minutes, 57 seconds adoption across our customers uh and there's clearly seeing value addition happening both on the iOS side of things and Android ecosystem we're also seeing 22:06 22 minutes, 6 seconds it going beyond mobile to CTV and we are seeing very very good impact overall of how AI is being implemented 22:15 22 minutes, 15 seconds one very key differentiation that I would like to highlight for everybody's benefit is that as more and more agentic uh AI you know tools come around the 22:24 22 minutes, 24 seconds internet across you know industries across different business cases and even as more and more consumers start having more and more agent take AI what's going 22:34 22 minutes, 34 seconds to be super important in digital advertising is what we define as human versus non-human filtration it has to be 22:40 22 minutes, 40 seconds very clear to our advertisers and technology platforms have a duty to show that hey if we showing an ad we're be 22:48 22 minutes, 48 seconds able to filter out whether this was a human engagement or whether this was an agentic or non-human engagement. You 22:55 22 minutes, 55 seconds would notice that Apple has been talking about this ever since you know pre IPO days of 2017 when we filed several 23:02 23 minutes, 2 seconds patents to distinguish between human versus machine activity and this is an area where we've got several patents granted over many years and this time 23:12 23 minutes, 12 seconds with the advent of agentic AI and the let's say explosion of AI generated apps or contents in the internet this 23:20 23 minutes, 20 seconds particular intellectual property or you know proposition or capability of Apple's 3i consumer platform stack is 23:28 23 minutes, 28 seconds becoming an outstanding differentiator as we talk to the advertisers right so to how do we filter out human versus non-human traffic and this problem 23:37 23 minutes, 37 seconds statement is something that Apple has got some unique modes around it and I think the competitors are not responding to this bit as much so all the 23:44 23 minutes, 44 seconds competitors whatever you hear AI is about automation or generating uh you know content but very few people are talking about technology where they can 23:52 23 minutes, 52 seconds filter out whether this is engagement from a human or a non-human and I think this is an area where is very differentiated. 24:01 24 minutes, 1 second S one followup to this uh so so you talked about filtering the human versus non-human traffic but in terms of 24:09 24 minutes, 9 seconds targeting the nonhuman uh traffic uh for conversions uh how would things work differently 24:16 24 minutes, 16 seconds versus how they have been when we are targeting humans. 24:21 24 minutes, 21 seconds So um you see when an advertiser would spend budgets u you know let's talk five years from now I mean today I think it's 24:27 24 minutes, 27 seconds still very early and um you know agentic will evolve over the next 5 years the advertisers would most certainly want to 24:35 24 minutes, 35 seconds make sure that a big part of their budget is spent to actually deliver on human engagements and driving conversions directly with humans and there would be a smaller part of the 24:43 24 minutes, 43 seconds budget that they would also say that okay use that to influence authentic AI agents that are acting on behalf of the 24:50 24 minutes, 50 seconds humans no the consumers there will always be this bigger challenge okay so let's put it into three buckets a big part of the ad spend 24:59 24 minutes, 59 seconds will go to target humans we addressing that very well another smaller part but a meaningful part could go towards 25:05 25 minutes, 5 seconds targeting the AI agents which are authenticated and are let's say assisting the humans or the consumers 25:14 25 minutes, 14 seconds and we must absolutely ensure that there is no loss of budget or engagement ment to the noisy nonauthenticated 25:24 25 minutes, 24 seconds AI agents. There will be tons of those which are pretending to be Ashwin or Anoj or you know um and and are what we 25:31 25 minutes, 31 seconds call as digital fraud, right? So there will be a huge need for filtering that out while clearly having this technology differentiation that we have and the IP that we have will come to our advantage. 25:41 25 minutes, 41 seconds But this will be an evolving trend over the next five years and like I said we have a competitive mode and we are ahead of the curve versus what most of the 25:49 25 minutes, 49 seconds compet competitors are talking or demonstrating in their road maps at the moment. 25:56 25 minutes, 56 seconds Thanks thanks for the answers you can take the next questions. 26:02 26 minutes, 2 seconds Thank you. Next question is from the line of Aron Prasad from Aendas Park. Please go ahead. 26:09 26 minutes, 9 seconds Um yeah good morning. Uh thanks for the opportunity. Uh Anuj my uh first question uh is on uh gross margins. If 26:17 26 minutes, 17 seconds you see last seven eight quarters we have continuously seeing a reduction in the margins from a percentage perspective. While I see positive uh in 26:26 26 minutes, 26 seconds this because we are able to absolute uh deliver absolute growth in the growth both gross margins and the margins. My 26:34 26 minutes, 34 seconds question is that this gross margin reduction is it a uh because competi we are responding to the competition or is 26:42 26 minutes, 42 seconds it because of the vertical exchange or is it the conscious decision and and if it is a conscious decision uh how much 26:50 26 minutes, 50 seconds of this would you would say that has contributed to our growth and uh where this leads to in terms of you know future in future there is only limited 26:57 26 minutes, 57 seconds way you can do this your thoughts on this please thanks no I think We we are very range 27:04 27 minutes, 4 seconds bound I think is within uh within our unit economic model. We're very disciplined in how we execute this. So you will have first of all no investor 27:12 27 minutes, 12 seconds should see any particular surprises in terms of how we execute. We should be very predictable dependable in terms of how we continue to grow our CPCO pricing 27:21 27 minutes, 21 seconds how we continue to grow our overall volumes of conversions and keep the data inventory cost at a sensible level and a 27:28 27 minutes, 28 seconds calibrated level. So this is an overall you know long-term view that I can give to you. In the in the short term in the 27:36 27 minutes, 36 seconds let's say last several quarters you would see that we have been calibrating and investing towards launching more verticals in more geographies uh going 27:44 27 minutes, 44 seconds deeper in our verticalization approach direct to advertisers and also emphasizing on premium positioning for the Apple platform. Why is it a premium? 27:54 27 minutes, 54 seconds Because it is targeting higher value lifetime users. to get to those higher value lifetime users, you have to target premium device models, premium touch 28:02 28 minutes, 2 seconds points on those device models. You got to go to CTV. you've got to go to you know more let's say uh you to find the 28:11 28 minutes, 11 seconds high lifetime value users for the advertisers that involves uh deeper investments and I use the word investment not expense but you know 28:20 28 minutes, 20 seconds accounting wise of course everything is expensed out in data inventory course deeper investment to build audience intelligence and advertiser intelligence 28:28 28 minutes, 28 seconds that is verticalized and highly um you know uh integrated with the first party data intellig ence of our platforms and 28:36 28 minutes, 36 seconds I think this area of investment has been a conscious decision. Having said that it doesn't take away from the overall 28:45 28 minutes, 45 seconds sensibility of our unit economic model and therefore you have seen overall expansion and growth in a in a sensible manner. So it should stay rangebound and 28:53 28 minutes, 53 seconds uh there's still a long runway for growth. um you know delivering 20% plus growth over the next 5 years is our goal and therefore verticalization 29:02 29 minutes, 2 seconds uh going towards the premium positioning more premium positioning more first party data integrations and um these 29:10 29 minutes, 10 seconds areas of investments across developed markets where we are clearly underc calibrated at the moment there's a long runway for road so we are investing in 29:17 29 minutes, 17 seconds that area and that's what you're seeing in terms of the margin profile but you know over a period of time we would think that even this particular aspect 29:25 29 minutes, 25 seconds would lead to further improvement and we should see better margins and you know even more stronger bottom line performance. 29:33 29 minutes, 33 seconds Interesting. So, so one clarification on this um see 39 to 39%age to 36% and off 29:39 29 minutes, 39 seconds to 250 bits reduction gross margin largely if it can be attributed to the investments uh how long does it take to 29:48 29 minutes, 48 seconds uh these investments to pay off I mean how long this can we can get back to say 38 37 38%age kind of a margins uh is is 29:56 29 minutes, 56 seconds there any timeline you are operating with or uh uh still nothing about year uh we should be able 30:05 30 minutes, 5 seconds to uh achieve the level of verticalization and the level of intel that we need to develop across uh you know all the key geographies and 30:14 30 minutes, 14 seconds hopefully around that time onwards we should see another year of bringing it back to you know high better levels of um you know where we don't need to 30:22 30 minutes, 22 seconds invest as much yeah my my second question is on a uh in the era of you know abundance abundant 30:30 30 minutes, 30 seconds intelligence and and inexpensive intelligence There are two things one can happen. One uh what we have built over say last several years or almost a decade. 30:40 30 minutes, 40 seconds Someone with a really resourceful uh competition can probably build it in a shorter figure. So maybe it can one it 30:47 30 minutes, 47 seconds can can lead to consolidation or it can encourage new players. How do you see this playing out in at least in the medium term? you see first consolidation 30:56 30 minutes, 56 seconds and then the new players or or or to first encourage new players which will lead to a consolidation later. 31:04 31 minutes, 4 seconds So uh first of all it's u you know VR is very strong businessto business platform right we are deeply integrated with the 31:13 31 minutes, 13 seconds advertisers whose u you know data integrations and apps integrations is a non-trivial matter to do it across 31:20 31 minutes, 20 seconds industry verticals across geographies with our very broad-based and diversified presence takes a lot of time it's not as simple as okay let's launch 31:29 31 minutes, 29 seconds an AI model and we're done. So you need to go and do the contracts with these advertisers across all these central verticals across geographies. Integrate 31:38 31 minutes, 38 seconds the apps and the data layers and then you can start training an AI model on that. This is not something that's readily available that you go on the 31:46 31 minutes, 46 seconds internet and you crawl around and you've built intelligence. This is not the kind of intelligence we are talking about. 31:51 31 minutes, 51 seconds The kind of audience intelligence and the advertiser intelligence we're talking about is deeply verticalized and 31:58 31 minutes, 58 seconds this intel requires you know a fairly long execution period to get through. So for new entrance it's going to be really 32:06 32 minutes, 6 seconds hard for the existing uh incumbent players um they will have to compete with Apple to get to that depth of 32:14 32 minutes, 14 seconds verticalized data integration and processing in Intel to go on a CPCU business model from where they are today which is still very much on impressions 32:22 32 minutes, 22 seconds and clicks. So changing your business model changing the technology stack going and convincing advertisers for a deeper integration. Let's take an 32:31 32 minutes, 31 seconds example. Let's say a company like trade desk which is doing you know it's a demand side platform focused on uh you 32:38 32 minutes, 38 seconds know serving ad agencies as partners. So the transition and they're not necessarily you know focused on nor 32:45 32 minutes, 45 seconds talking about nor investing at the moment on the CPCU business model. So for them to let's say start transitioning to CPCU business model 32:53 32 minutes, 53 seconds going direct to advertisers integrating deeply on the first party data of the apps of the advertisers it's going to be a massive transition. So incumbent 33:01 33 minutes, 1 second organizations will find it challenging and new entrance would also find it challenging. So I I I wouldn't say that it is low cost AI. It is deep 33:10 33 minutes, 10 seconds verticalized premium advertising and audience intel which is not readily available where you can't just say okay 33:17 33 minutes, 17 seconds I've taken a cloud connection internet and now I've become intelligent. It doesn't work like that. 33:24 33 minutes, 24 seconds Thank you. Next question is from the line of chain from city group. Please go ahead. 33:30 33 minutes, 30 seconds Yeah. Hi. Thanks for the opportunity and I have uh two questions. uh one you know uh with this uh you know with this uh 33:38 33 minutes, 38 seconds fund raise that you've announced and I know in the past you've said that you uh you look at the trailing 12 months operating profit as uh you know a 33:47 33 minutes, 47 seconds benchmark or something uh for an M& equity activity. So my question first is 33:54 33 minutes, 54 seconds uh are we looking at somewhere around you know $200 million is the ticket size I understand it can go up and down uh 34:02 34 minutes, 2 seconds but is that the general ballpark and related question have you kind of narrowed focus on the kind of asset you want to acquire there as well um that's 34:11 34 minutes, 11 seconds my first question and then I'll come back with the second one I would give the answer to the second 34:18 34 minutes, 18 seconds question first because uh in the last earning score also I'd mentioned that you know we have evaluated several companies more than 10 and then we've 34:26 34 minutes, 26 seconds shortlisted about four where we are doing deeper due diligence uh we are doing deeper assessments as well as negotiations 34:35 34 minutes, 35 seconds um I wouldn't want to give any color to the size of the transaction because you there are there are few transactions that we talking about very very you know 34:43 34 minutes, 43 seconds uh small transactions I don't want to confuse uh you know your analysis on that there are some larger ones so 34:50 34 minutes, 50 seconds there's you know small, midsize and larger ones and we may we may do more than one in terms of you know how we execute through the rest of this 34:58 34 minutes, 58 seconds financial year. So I would say stay tuned as and when we closer to and have a definite announcement on it we will we will be very proactive in explaining our 35:07 35 minutes, 7 seconds approach and strategy. But it is important to also note that given the ambition of the organization and the kind of short-listed pipeline of the 35:16 35 minutes, 16 seconds opportunities that we are actively engaged with, it is now prudent. It is now the right time for the company to be 35:23 35 minutes, 23 seconds ready uh with the necessary capital uh and seriousness to send the right message even to to the boards of uh the 35:32 35 minutes, 32 seconds selling organizations uh to know that we are serious. we're here and that we have the necessary financial resources to execute in the very short term if it is 35:40 35 minutes, 40 seconds needed. But we will like I said we will take our own time. We there's no pressure to act like today or tomorrow but we are you know making sure that we 35:48 35 minutes, 48 seconds execute um at the right terms at the right price with the right target company. So we will be very patient very 35:56 35 minutes, 56 seconds calibrated and we will bring the right transaction to unlock value for our shareholders. 36:01 36 minutes, 1 second Perfect. Understood. That's very helpful. Uh thank you. My second question is you know in your earlier uh remarks you know you said uh you said a 36:10 36 minutes, 10 seconds couple of times uh that this next phase of group in uh you know advertising it'll be direct to advertisers and first 36:17 36 minutes, 17 seconds party data integration and so on and I know that there's been some recent tensions between ad agencies and some 36:24 36 minutes, 24 seconds not you guys but some other uh DSPs as well. Uh so is that uh you know is there a n to that? Do you see the whole you 36:33 36 minutes, 33 seconds know structure of industry kind of changing uh post AI uh um is that is 36:41 36 minutes, 41 seconds that a n to that and related question to that I suppose is if you can give me a color on you know what your uh current 36:48 36 minutes, 48 seconds footprint is of uh in terms of you know your active uh SDK integration that you have with app publishers and how that has trended over the last one. 37:00 37 minutes Right. So um really what I can tell you is that uh in terms of the industry trend all I'm saying is that you have to 37:08 37 minutes, 8 seconds be closer to your customer on and and if you look at our uh earning slide there's one particular slide that 37:15 37 minutes, 15 seconds gives the entire Apple 3i consumer platform stack details you know one slide that tells you how we are direct 37:23 37 minutes, 23 seconds to advertiser by design and there we call AI as advertiser intelligence and not just that we call verticalized AI 37:32 37 minutes, 32 seconds which is verticalized advertiser intelligence and then on the other side we're talking about AI as in audience intelligence 37:39 37 minutes, 39 seconds where we have 4 billion consumers devices that we are able to reach out and therefore we are profiling or 37:46 37 minutes, 46 seconds processing audience intelligence at scale and that is highly personalized to deliver personalized recommendation 37:53 37 minutes, 53 seconds there's vernacular intel creative optimization all of those things the kind of scale and premium verticalization that we talking about. 38:03 38 minutes, 3 seconds This is the model that we're talking about. We are saying this is what we believe in. Now there are a few pathways to go to the advertiser and for us 75% 38:12 38 minutes, 12 seconds of our pathway is direct with the advertiser. There's no other company involved in between. 25% plus of the 38:20 38 minutes, 20 seconds revenue is through large ad agency group partners. But even there our tech stack is directly integrated with the end 38:27 38 minutes, 27 seconds advertisers app to you know because we are driving CPCO business model. So we our our business model requires that even if there is an agency or a partner 38:36 38 minutes, 36 seconds in between we would still need to integrate with the end advertiser directly. It's a necessary requirement. 38:43 38 minutes, 43 seconds That's what I'm emphasizing about. I think the the role of ad agencies you know will will continue to be relevant. 38:49 38 minutes, 49 seconds It will change. It will evolve. it will become, you know, uh, a lot more efficient or perhaps even higher value roles and functions that they could 38:57 38 minutes, 57 seconds play. So, I wouldn't really opine on their future, but all I'm saying is that it for a tech stack like ours, we need 39:04 39 minutes, 4 seconds to connect and be deeply integrated with the advertiser. So, that's the that's the main emphasis point there. uh in 39:12 39 minutes, 12 seconds terms of um the SDK footprint you know our direct to consumer conversions approach of the business allows us 39:20 39 minutes, 20 seconds several pathways of working so on that slide you would see the supply side integrations there OEM and operator integrations there is even wall gardens 39:28 39 minutes, 28 seconds integrations and we are working on the mobile device we're working on the CTV devices the connected household devices 39:35 39 minutes, 35 seconds and also on digital out of home I mean of course that's a very small part of our sort of business but we are looking at the consumer journey as an end toend 39:44 39 minutes, 44 seconds connected journey. We work with a lot of the SDK partners as well. Our own SDK is also doing well and you know one of the 39:51 39 minutes, 51 seconds areas of um the footprint expansion is is that you know going deeper with those publishers because once you have the 39:59 39 minutes, 59 seconds kind of advertiser demand that we command in the market today with the verticalized integrations that is unique 40:06 40 minutes, 6 seconds advertisers demand. So all the publisher side of the ecosystem we are able to absolutely work with and um you know 40:15 40 minutes, 15 seconds find deep next with so maybe I'll just leave it at that but the footprint is expanding today our footprint not of the 40:22 40 minutes, 22 seconds SDK alone but across all the channels that we have to reach out to the consumer conversions directly has over 4 billion connected devices footprint and that's not insignificant. 40:33 40 minutes, 33 seconds Understood. Uh and if I can just follow up and sorry to interrupt Mr. This is just a followup but yeah sure. 40:40 40 minutes, 40 seconds Thank you ladies and gentlemen in order to ensure that the management will be able to address questions from all the participants in the conference. Kindly 40:49 40 minutes, 49 seconds limit your questions to two per participants. Should you have a follow-up question please rejoin. The next question is from the line of Adel Khan from ICA Predential Life Insurance. 40:59 40 minutes, 59 seconds Please go ahead. 41:01 41 minutes, 1 second Yeah. Hi uh sir congratulations on a great set of numbers. Uh I have a couple of questions. Uh so firstly when it 41:09 41 minutes, 9 seconds comes to acquisition uh like you mentioned that you know you've boiled down to four uh entities. So what kind of uh capabilities are we looking for uh 41:18 41 minutes, 18 seconds in these companies? And secondly if you could give us a timeline. 41:25 41 minutes, 25 seconds Thanks Adil for your question. In terms of capabilities, our focus is to, you know, take on 41:32 41 minutes, 32 seconds direct access to a lot more uh advertisers and, you know, sales force out there with with certain levels of 41:40 41 minutes, 40 seconds initial integrations that they may have already done with those customers and advertisers and developer markets or even globally. And then 41:49 41 minutes, 49 seconds we were assessing them whether those integrations and relationships can be tapped on by Apple to really bring a transformative life to our strategy to 41:58 41 minutes, 58 seconds go and take that acquired company and make it the verticalized first party data integrated direct to advertiser platform that we're talking about here. 42:07 42 minutes, 7 seconds So again uh the target is to get to a larger base of customers and have a sales team with ready relationships have 42:15 42 minutes, 15 seconds a tech stack with some ready integrations and then to transform it and enhance it to the to the to the playbook of Apple which is to make it a 42:24 42 minutes, 24 seconds much more premium platform versus the way it is operating at the moment and to enhance its competitive mode using Apple's approach and strategy as well as 42:32 42 minutes, 32 seconds our technology. So that's what we're looking at. The goal is to strengthen ourselves even more in developed markets and um and be much more verticalized 42:41 42 minutes, 41 seconds both with the advertiser verticals as well as at an ecosystem level right from the advertiser to the consumer platform 42:48 42 minutes, 48 seconds the consumer conversions how can we go you know fully simplifying and unifying the ecosystem from the advertiser to 42:55 42 minutes, 55 seconds consumer conversions and that's our strategy and approach in terms of the timeline um you know I think we we are 43:02 43 minutes, 2 seconds working there's a realistic chance that we may uh you know conclude a meaningfully sized transaction within this uh year itself and I say year I'm 43:11 43 minutes, 11 seconds not meaning the whole financial year but within this calendar year and these transactions do take time because you know we're talking about um you know the 43:19 43 minutes, 19 seconds full due diligence process the negotiation the conclusion of the governance processes around it and uh once the you know once we are closer to 43:28 43 minutes, 28 seconds the definitive agreements and dates we will certainly provide the uh clearer timeline but for now I think it should be you know reasonable to say that 43:36 43 minutes, 36 seconds within this year calendar year we should see uh a transaction hopefully of a meaningful size. 43:43 43 minutes, 43 seconds Perfect sir. Thank you so much. 43:49 43 minutes, 49 seconds Thank you. Next question is from the line of Vive Ma from Invesco India. Please go ahead. 43:57 43 minutes, 57 seconds U so with respect to the gross margins uh what the investment we are doing can you give some context as to uh how much 44:06 44 minutes, 6 seconds more investments are pending and uh when should we expect these investments to taper off uh that's the first questions 44:15 44 minutes, 15 seconds uh second one is uh given how the market is shifting with the NATC do you think this the right time to enter into the 44:23 44 minutes, 23 seconds SSD space in a meaningful way Thanks for your questions. Um I think 44:31 44 minutes, 31 seconds I've already given some guidance on the this answer on gross margins that we are investing with a very clear purpose-driven 44:39 44 minutes, 39 seconds you know uh strategy which is to be deeply verticalized be a premium platform that has intelligence across 44:47 44 minutes, 47 seconds key geographic regions and key industry verticals. And that requires the right kind of investment. 44:54 44 minutes, 54 seconds Going to lifetime value, high lifetime value consumer conversions. That kind of a premium positioning requires certain investment in intelligence building and we are doing that very well at scale. 45:05 45 minutes, 5 seconds Now I did mention that will take about a year more and then we will start seeing greater benefits of that in the second year and hopefully improving the margin 45:14 45 minutes, 14 seconds uh percentages and the financials progressively. With respect to your um you know second question regarding SSPS 45:23 45 minutes, 23 seconds our view is very straightforward. We see you know these terminologies where you know an organization is just playing on 45:32 45 minutes, 32 seconds the SSP side u or or companies that are only playing on the SSP side or let's for those who don't understand this 45:40 45 minutes, 40 seconds terminology there are companies that only focus on the supply side. My opinion is not very strongly in favor of 45:46 45 minutes, 46 seconds that. My view is that anybody who's in let's say provision of technology for advertising has to find a way to be very 45:55 45 minutes, 55 seconds close to the advertiser very close to the customer going for deeper integrations with the advertisers and the customers in order 46:04 46 minutes, 4 seconds to ensure that you can serve their interests well. And you have to have a direct to consumer conversions business model in order to absolutely you know 46:13 46 minutes, 13 seconds ensure that you're delivering ROI to the advertiser versus just playing a very point solution at one end of the ecosystem saying only supply side I 46:21 46 minutes, 21 seconds think those platforms will be commoditized and it'll be very very hard for them to compete uh in the market. So even if we do any acquisitions or our 46:30 46 minutes, 30 seconds strategy is very clear, we are looking for you know finding more a larger customer base, a larger salesforce that 46:37 46 minutes, 37 seconds can serve that customer base and a text tag that already has some preliminary integrations and then how can we expand that into our uh you know overall 46:46 46 minutes, 46 seconds premium philosophy and transformation towards a verticalized integrated platform going direct to advertisers, direct to consumer conversions and 46:54 46 minutes, 54 seconds therefore our play as Apple is always going to be an end to end platform. They will you will never see us gravitate you 47:02 47 minutes, 2 seconds know to as a point solution on one side of the ecosystem distant from the end customer who's paying which is the advertiser. 47:10 47 minutes, 10 seconds That's wonderful. Thanks. 47:15 47 minutes, 15 seconds Thank you. Next question is from the line of Anal from Jam Capital. Please go ahead. Yeah. Hi, thanks for the opportunity. 47:23 47 minutes, 23 seconds Couple of things that I uh wanted to understand. uh one thing is that I wanted to understand is that in case we acquire something can we look to operate 47:31 47 minutes, 31 seconds at different model like uh you know cost per impression or cost per click or are we would would we want to convert that 47:38 47 minutes, 38 seconds company to the CPCU model itself um our endeavor would be to convert and 47:48 47 minutes, 48 seconds transform over a period of time but not doing it in an abnormal or a you know uh not in the natural course of business. 47:57 47 minutes, 57 seconds So, you know, if you notice that in the in our previous acquisitions that we did in year 2020 to 2023, 48:05 48 minutes, 5 seconds we acquired companies that were not naturally on a CPCU business model. They were not even on a unit economic model. 48:11 48 minutes, 11 seconds They were not profitable. They were just barely breaking even. And we have transformed all of those business into you know now a CPCU business model. But 48:19 48 minutes, 19 seconds it takes time, it takes effort. Our goal would be to make sure that when we acquire first of all any business that we acquire the valuation and the you 48:28 48 minutes, 28 seconds know financial sensibility has to be very very conservative very very prudent. Uh we are putting our hard-earned money into you know instead of building we making a decision to buy. 48:38 48 minutes, 38 seconds So we will be very sensible valuedriven and conservative in terms of the valuation in terms of what we acquire. 48:45 48 minutes, 45 seconds It should give us a clear and a meaningful starting point, a bigger base as a starting point on which we can then 48:53 48 minutes, 53 seconds ensure that we can grow the Apple's CPU business and platforms on that base in those markets. So let's say we do an 49:02 49 minutes, 2 seconds acquisition and you know that target entity has a base of customers a sales team let's say in developed markets 49:09 49 minutes, 9 seconds North America and Europe and soon after that we will train those sales teams to take you know our products and propositions on top of that to upsell to 49:18 49 minutes, 18 seconds cross-ell those deeper CTCU conversion use cases to those customers and naturally over a period of time we would 49:24 49 minutes, 24 seconds see hopefully that uh their own um you know the the quiet business as we had it report over the first year, second year, 49:32 49 minutes, 32 seconds possibly by the third year would be fully transformed to the CPCU uh or more premium positioning that we have with the advertisers. 49:41 49 minutes, 41 seconds Uh very helpful and and in continuation uh to this uh you have spoken about uh that CTE is a clear growth area into the 49:51 49 minutes, 51 seconds industry. So just wanted to understand like how uh CPCU model will work in the CTV type of uh engagement or uh largely 50:00 50 minutes that would work on our impression kind of a model. 50:05 50 minutes, 5 seconds Oh the CTC model can work on uh you know CTV engagement can work on digital out of home engagement can work on mobile and I think the answer is very simple. 50:14 50 minutes, 14 seconds If you have the intention to deliver ROI, all it requires is to back that intention with execution action to go 50:22 50 minutes, 22 seconds deeply integrate with the advertiser. So for example, if somebody sees an ad on the CTV and that person, let's say 50:30 50 minutes, 30 seconds engages with that ad in, you know, many different ways that can be done. We have a lot of unique ways that that can be done. For example, you have your mobile 50:37 50 minutes, 37 seconds phone. You can, you know, straight away scan a QR code or maybe not even that. 50:42 50 minutes, 42 seconds There could be some other ways you look at the mobile phone. It can you know create some complimenting experiences on it and we can create re-engagement and repeat conversion possibilities on the 50:51 50 minutes, 51 seconds mobile device and the user is out there at digital out of home in a shopping mall or something like that. We can again create those kind of engagements 50:58 50 minutes, 58 seconds that can drive either on your mobile device straight away you go and you can do a conversion or a transaction with the advertisers app or in a physical 51:07 51 minutes, 7 seconds mall situation you can actually have a footfall driven there. Now to to to do the um let's say conversion uh related 51:16 51 minutes, 16 seconds business model the fundamental insight is that the conversion has to happen inside the advertisers environment right so whether 51:25 51 minutes, 25 seconds it is the advertisers app or whether it is the advertiser storefront or whether it is the physical uh storefront these 51:33 51 minutes, 33 seconds are the places where the conversion event would happen and therefore Apple has to have deep firstparty data integration with the advertisers to to 51:41 51 minutes, 41 seconds ensure that we are achieving that and that's how we do it. Uh CTV is an important part of the journey. What we have to think about it is not just not 51:50 51 minutes, 50 seconds the screen we are a consumer platform and consumer platform the consumer is on multiple screen touch points in app 51:58 51 minutes, 58 seconds mobile this is a very big and a very important uh you know touch point for us. CTV which is the households 52:06 52 minutes, 6 seconds connected households very important touch point for us and we are closing the loop overall with a very small but 52:15 52 minutes, 15 seconds an important use case which is to say that the brands also want to drive conversions on their physical store so you know digital out of home is also 52:23 52 minutes, 23 seconds another area that we would look at but I would say it would suffice to say that over 90% focus is on inapp mobile and 52:30 52 minutes, 30 seconds CTV at this moment and a very very small uh percentage would focus on visual Understood. Understood. And if I can take one more. 52:38 52 minutes, 38 seconds I'm sorry to interrupt. Mr. D. Please reach out to me for more questions. Okay. Sure. Thanks. 52:45 52 minutes, 45 seconds Thank you. Next question is from the line of Hari Goyel from New Mutual Fund. Please go ahead. 52:52 52 minutes, 52 seconds Uh hello. Uh thanks for the opportunity sir. This is just one question from my end. Given the current geopolitical 52:59 52 minutes, 59 seconds situation and some signs of recessions coming in, are we seeing the global brands are tightening their marketing budget and how can we see its impact on 53:08 53 minutes, 8 seconds FL per se? Uh our brand shifting from general branding towards our high higher 53:14 53 minutes, 14 seconds roe model of CPCU. Thank you sir. Just thanks Har for the question. You know I 53:21 53 minutes, 21 seconds have been leading Apple for 21 years and we have seen several financial crisises several you know crisis in the journey 53:29 53 minutes, 29 seconds of 21 years and I've been an entrepreneur for more than 30 so I've you know seen you know a fair bit of that we have built Apple's business 53:38 53 minutes, 38 seconds model for resilience and for fundamental deeply integrated modes with the 53:45 53 minutes, 45 seconds customer and aligning our you know entire existence with with the you know for the benefit of the customer. I think 53:53 53 minutes, 53 seconds this kind of alignment is very dependable very trustable and especially when times get tough it becomes very 54:01 54 minutes, 1 second important. So when times get tough as they are and have many times in the past, we are of the clear view that the 54:10 54 minutes, 10 seconds CPCO business model is going to be resilient is in fact going to be the go-to business model for the advertisers 54:18 54 minutes, 18 seconds because the businesses don't when recession happens, it's not that businesses stop. businesses find it 54:25 54 minutes, 25 seconds harder to make revenue and in that time they want to spend their advertising dollar with great prudence and careful 54:33 54 minutes, 33 seconds measures to say that if I'm spending this ad money I better get ROI. I think it is common sense but we have seen it 54:39 54 minutes, 39 seconds repeated number of times that all budgets get tighter and when budgets get tighter when the when the going gets 54:47 54 minutes, 47 seconds tough for everyone only the tough really can get going and this business model is a resilient business model is it it is a 54:54 54 minutes, 54 seconds tough business model and I think we have anchored ourselves on it for this very reason and when we were going public in 55:02 55 minutes, 2 seconds 2018 2019 and I was on the road shows uh people were asking are you So you know you're ready to go public. I said yes. I think this business model I can deliver 55:11 55 minutes, 11 seconds to the public market investors a resilient, dependable and durable longlasting you know uh success pattern. 55:20 55 minutes, 20 seconds Last quarter uh was a tough quarter geopolitically right Jan Feb March 2026 was a tough quarter and it was a quarter 55:29 55 minutes, 29 seconds without the benefit of festive seasonality. Typically in advertising businesses anywhere in the world you will find that their highest quarter is 55:36 55 minutes, 36 seconds October, November, December because of the valley because of Christmas school holidays and shopping 55:43 55 minutes, 43 seconds without the advantage or the tailwinds of the festive quarter with the headwinds of geopolitical issues. Jan Feb March we was very resilient for us. 55:53 55 minutes, 53 seconds We we were able to grow uh at least the top line better than and even a bit better than the last quarter. I mean in 56:00 56 minutes terms of fundamental uh performance CPCU business in a very small snapshot of the last quarter has already shown you 56:07 56 minutes, 7 seconds resilience. I think uh if I was an advertiser and the economy was in a tough place I would gravitate to CPC business model much faster than they are otherwise doing. 56:21 56 minutes, 21 seconds Thank you sir and all the best for the future. 56:25 56 minutes, 25 seconds Thank you. A reminder to all the participants, please restrict yourself to one question only. We will take a next question from the line of SPN from JM Financial. Please go ahead. 56:38 56 minutes, 38 seconds Hi uh thanks for the opportunity. My question is regarding the warrant issue. 56:43 56 minutes, 43 seconds Uh so first of all I would like to understand the cap structure of your Apple Holdings Limited. Uh uh and a 56:51 56 minutes, 51 seconds related question to that is basically where where is Apple holdings uh getting the money from uh to to to invest in uh 56:59 56 minutes, 59 seconds Apple India and lastly why why a warrants route uh instead of a QIP. Thank you. 57:07 57 minutes, 7 seconds Uh I'll take this question. Um so this is an call for Apple 3 limited and northern call for Apple Holdings 57:16 57 minutes, 16 seconds Limited. However, um the second question of yours is why a warrant and why not an equity? We already have a substantial 57:25 57 minutes, 25 seconds amount of cash. When we are on a negotiation on the pricing with the uh target companies, there is a requirement 57:32 57 minutes, 32 seconds to show the strength on the capital and if you need to take some leverages, you need to build up the capital, 57:39 57 minutes, 39 seconds right? So we don't we have as we said that we will take some time to uh close the acquisition in this calendar year. 57:47 57 minutes, 47 seconds Uh we wanted to uh show up the uh availability of or certainty of availability of the cash on the table. 57:56 57 minutes, 56 seconds Right. Um if you can uh do you have any follow-up question on this but uh what is the source of funding of Apple holdings? If any notification comes from 58:04 58 minutes, 4 seconds Apple holdings to us we will definitely disclose it to the stock exchange. Got it. Thanks. 58:13 58 minutes, 13 seconds Thank you. Next question is from the line of Pavish Parik from 361 Capital. Please go ahead. 58:21 58 minutes, 21 seconds Hi Dean, thanks for the opportunity and congratulations on a steady set of numbers. Couple a couple of bookkeep bookkeeping questions. Uh our other 58:28 58 minutes, 28 seconds expenses declined 3% in F26 after rising about 40 odd percent in F25. uh would you attribute this entire decline to 58:35 58 minutes, 35 seconds moderation in business promotion expenses or is there some other efficiency driving this and how do we look at uh movement and other expenses 58:42 58 minutes, 42 seconds going forward and uh could you also explain the movement in other income it declined about 17% in F26 is this uh all 58:50 58 minutes, 50 seconds treasury related or is there something more to this um thank you for the question uh the 58:58 58 minutes, 58 seconds largely it is uh the decline or the moderation in the business promotion expenses. There is no linear spending on 59:05 59 minutes, 5 seconds the business promotion expenses. It is it generally Q2 is the highest spending quarter for us and uh some amount in Q1 59:14 59 minutes, 14 seconds also uh which where where we show up our in marketing efforts as we participate 59:20 59 minutes, 20 seconds in various events or we do uh uh do client meetings at a larger scale. 59:26 59 minutes, 26 seconds Right? So these are the places where we spend uh these are the quarters where we spend largely. So the moderation is uh 59:33 59 minutes, 33 seconds largely on account of uh the marketing expense. Uh the other efficiencies are definitely there but uh uh the 59:42 59 minutes, 42 seconds significant is this one to call out. 59:48 59 minutes, 48 seconds Sure. And on the other income and other other income uh the other income is uh part of the casualty uh uh 59:55 59 minutes, 55 seconds operations uh as we had been keeping our borrowings uh right. is the there has been some amount of reduction in the 1:00:02 1 hour, 2 seconds cash uh on the in that extent but however we have been accumulating cash uh largely the decline has been on 1:00:09 1 hour, 9 seconds account of exchange gains over this quarter and uh during this year as large part of our expenses which come in terms 1:00:18 1 hour, 18 seconds of the data inventory cost or employees uh outside India uh these are the uh the exchange expenses which we are uh 1:00:27 1 hour, 27 seconds expenses which we are booking in this year. 1:00:33 1 hour, 33 seconds Understood. Sure. Uh secondly on the cash flow kish one question at a time please. 1:00:41 1 hour, 41 seconds Sure. Thank you. 1:00:44 1 hour, 44 seconds Next question is from the line of Sam Patel from Securities. Please go ahead. 1:00:55 1 hour, 55 seconds As there is no response from the current participant. We will take our next question from the line of Onar Gur from Shri Investment. Please go ahead. 1:01:04 1 hour, 1 minute, 4 seconds So as I earier mentioned that uh 20% growth for the next 5 years is what you can do but uh you have guided for around 1:01:14 1 hour, 1 minute, 14 seconds 10x of the revenue in the next 10 years that would that would want you to grow somewhere around 26% CG. So all of that 1:01:22 1 hour, 1 minute, 22 seconds remaining portion would come from inorganic growth and uh like in the generation of the AI don't you think the 1:01:31 1 hour, 1 minute, 31 seconds growth can be with the tailwind of AI the growth can be much more than the 20% which you have producted projected for 1:01:39 1 hour, 1 minute, 39 seconds the organic front or is the base effect catching here 1:01:46 1 hour, 1 minute, 46 seconds uh no there's no base effect catching here it's um I think it's it's a sens ible sort of growth calibration at the 1:01:53 1 hour, 1 minute, 53 seconds moment to look at modeling our company uh for organic growth of over 20%. And with the clear and deep understanding 1:02:02 1 hour, 2 minutes, 2 seconds that even if we go ahead and do any inorganic transaction, our goal would be that the combined entity the combined 1:02:10 1 hour, 2 minutes, 10 seconds entity must be deeply growth oriented and should average towards the 20% growth in the in the near to medium term 1:02:19 1 hour, 2 minutes, 19 seconds with a very clear emphasis that the bottom line efficiencies of the organization delivering you know close 1:02:26 1 hour, 2 minutes, 26 seconds to 23% to 25% IITA over a period of time which is where you can the trend lines last year to this year our IITA has gone 1:02:35 1 hour, 2 minutes, 35 seconds up in the mid 2022 22 to 23% and you know our goal is to constantly move the notch up this is a sensible level of 1:02:44 1 hour, 2 minutes, 44 seconds growth for the industry that we are in and for the tailwinds of AI that we already factoring in can it grow faster 1:02:52 1 hour, 2 minutes, 52 seconds well there is a possibility to calibrate it like that but then that would be I would say not has profitable growth in terms of um you know just going for 1:03:01 1 hour, 3 minutes, 1 second topline growth getting the numbers from all kinds of advertisers not every pocket or segment of uh you know 1:03:08 1 hour, 3 minutes, 8 seconds advertising on digital is as profitable uh as the ones that we are focused on. 1:03:12 1 hour, 3 minutes, 12 seconds So I think we calibrate ourselves to to deliver premium conversions for you know those verticals where we think that we 1:03:20 1 hour, 3 minutes, 20 seconds can make the the right kind of outcomes and many of times um there are sales orders that our customers uh that our customers send to us through our sales 1:03:28 1 hour, 3 minutes, 28 seconds teams that you know we would even decline if we think that those campaigns are not uh you know appropriate or will not lead to the right kind of profitable 1:03:35 1 hour, 3 minutes, 35 seconds sensible outcomes. We would uh not necessarily take every revenue on board. 1:03:40 1 hour, 3 minutes, 40 seconds So what we are talking about is high quality revenue, predictable, sensible, you know, calibration for for the kind 1:03:47 1 hour, 3 minutes, 47 seconds of growth that we're talking about and getting to 10x growth. You know, it's it's a committed plan and we are on track to getting there. 1:03:58 1 hour, 3 minutes, 58 seconds Okay. Thank you. 1:04:01 1 hour, 4 minutes, 1 second Thank you. Next question is from the line of Tanesha from Karen Capital. Please go ahead. Hi. Uh thank you for taking my question. 1:04:10 1 hour, 4 minutes, 10 seconds So my question is regarding uh an ATT team and an ATC ecosystem another tech player was partnered with like open for 1:04:20 1 hour, 4 minutes, 20 seconds uh advertising pilots on chart GPT which went live in March 26 and I believe Chad 1:04:27 1 hour, 4 minutes, 27 seconds GP also roll out in US uh Australia and Canada. So I don't know whether we are also conducting some pilot uh 1:04:36 1 hour, 4 minutes, 36 seconds experiments on this stage and if yes what are the learnings which we have. 1:04:43 1 hour, 4 minutes, 43 seconds Thanks. Well yes definitely we are doing our own integrations doing our own experimentations around it but what I can guide you towards and what I would 1:04:51 1 hour, 4 minutes, 51 seconds want you to think about is that see these LLM platforms as you know like an ecosystem level place. So you would you 1:04:59 1 hour, 4 minutes, 59 seconds would see that very soon these platforms would have you know like app stores and different apps using their LLM to you 1:05:07 1 hour, 5 minutes, 7 seconds know launch uh you know unique specific products and services for for the end consumers and other businesses and I 1:05:15 1 hour, 5 minutes, 15 seconds think what will happen here is that you're not just integrating it's it's like you know you you don't have to necessarily integrate only with Apple and Google as long as there are let's 1:05:24 1 hour, 5 minutes, 24 seconds say there will be millions of apps AI generated apps human generated apps, websites that will use these LM 1:05:31 1 hour, 5 minutes, 31 seconds platforms to launch. So our goal is to work at an ecosystem level with the enduser touch points which are these 1:05:39 1 hour, 5 minutes, 39 seconds apps that will be powered or running on top of these LLM platforms to create the um so so think of it as a as a new sort 1:05:48 1 hour, 5 minutes, 48 seconds of in our categories EFG in the category G. Soon you will hear from us we talk about Gen AI apps as a vertical or as a 1:05:57 1 hour, 5 minutes, 57 seconds you know category of advertisers the new a genai apps which will also need to do two things one they need to find the consumer so that you know they'll use 1:06:06 1 hour, 6 minutes, 6 seconds their app and B uh in order to do that they'll spend you know ad budgets on a CPC model with us secondly they also want to make money from advertising 1:06:14 1 hour, 6 minutes, 14 seconds because not all these new genai apps will be paid for by consumer subscriptions okay so they need ad revenue so they will work and integr ate 1:06:22 1 hour, 6 minutes, 22 seconds with a platform like ours. So working with the underlying LLM platforms is you know one level of experimentation but 1:06:29 1 hour, 6 minutes, 29 seconds the real takeoff and the value and the scale is in the you know uh visualization of this entire ecosystem being fully ready and prepared for that 1:06:38 1 hour, 6 minutes, 38 seconds uh you know advent of genai apps and sites wanting ads uh wanting to do advertising and I think that's what 1:06:45 1 hour, 6 minutes, 45 seconds Apple is prepared and ready for now. I think we are in a good place there. Okay, that was helpful. Thank you. 1:06:55 1 hour, 6 minutes, 55 seconds Thank you. Next question is from the line of Sanjay Lada from Dashin Research. Please go ahead. 1:07:03 1 hour, 7 minutes, 3 seconds Yeah. Hi sir. Well, thank you for the opportunity. So I wanted to understand the customer revenue cycle meaning uh 1:07:10 1 hour, 7 minutes, 10 seconds you know what is the repeat customer percentage for one year three year and five year and why I'm asking is are we 1:07:17 1 hour, 7 minutes, 17 seconds able to increase wallet share with existing customer or is it one-time sales for one particular time do the 1:07:24 1 hour, 7 minutes, 24 seconds three year and five year customers still work with us yes absolutely so you know uh the the 1:07:34 1 hour, 7 minutes, 34 seconds growth for us is anchored on uh you know the a few ways you can look at it. 1:07:40 1 hour, 7 minutes, 40 seconds Existing customers spending more in existing markets. 1:07:45 1 hour, 7 minutes, 45 seconds Existing customers spending new budgets with us in new markets where they were not working with us before because we're 1:07:53 1 hour, 7 minutes, 53 seconds a global platform. So we always calibrate and we go to our existing customers. Hey, you're working with us in all these markets. Look, we have these case studies with you, but we are 1:08:02 1 hour, 8 minutes, 2 seconds also working in other geographies where some of those customers may have presence. So, we will then take them with us to those new geographies and 1:08:10 1 hour, 8 minutes, 10 seconds extract budgets from them for that. Then we have a sales team or marketing team that's constantly looking for new logos, 1:08:17 1 hour, 8 minutes, 17 seconds new customers across all our industry verticals both in existing markets as well as we are constantly expanding and 1:08:24 1 hour, 8 minutes, 24 seconds saying let's you know let's launch and look for new customers and logo in the new markets where you know we are a little undercalibrated for example in 1:08:31 1 hour, 8 minutes, 31 seconds developed markets. So we do see broadbased growth and expansion coming on our customer base and there are 1:08:39 1 hour, 8 minutes, 39 seconds several customers who've been working with us for over decades. Now we have a 21 years journey in the company and you know definitely there is there's a lot 1:08:47 1 hour, 8 minutes, 47 seconds of um dependence on existing as well as on a good healthy mix of new logos coming on board across existing and new markets. 1:08:57 1 hour, 8 minutes, 57 seconds So can you share any repeat customer name uh names? Okay. I I think what I can 1:09:04 1 hour, 9 minutes, 4 seconds tell you for the dance uh um 1:09:14 1 hour, 9 minutes, 14 seconds couple could you could you take that question? 1:09:17 1 hour, 9 minutes, 17 seconds Hello. Yeah. Uh we will uh not be able to disclose uh that kind of a detail of the information please. 1:09:26 1 hour, 9 minutes, 26 seconds If I can squeeze one more I'm sorry to interrupt uh Sanjay please we have other participants. Thank you. 1:09:36 1 hour, 9 minutes, 36 seconds We will take our next one thing though Sanjay what what I would what I would recommend is uh reading the case studies that we are 1:09:42 1 hour, 9 minutes, 42 seconds highlighting you know we disclose so many case studies so many awards that we are winning for our customers for ourselves for the work that we do for 1:09:50 1 hour, 9 minutes, 50 seconds them. That should give you a very good understanding of our verticalized approach and how we serve our customers. 1:09:56 1 hour, 9 minutes, 56 seconds And you know it's the short answer is not a one-time engagement. It is you know cyclical to the extent that's yearon year budget to budget and you 1:10:05 1 hour, 10 minutes, 5 seconds know in India is Diwali to Diwali and so on. I think how the advertising budgets are planned for the year we calibrate that together and then we execute through the quarters with our customers. 1:10:16 1 hour, 10 minutes, 16 seconds Thank you. Let's go to the next question please. 1:10:20 1 hour, 10 minutes, 20 seconds Thank you. Next question is from the line of Lokesh Manik from Val Capital. Please go ahead. 1:10:26 1 hour, 10 minutes, 26 seconds Yes. Hi, good morning Anuj and Capell and team. Uh am I audible? Hello. Yes. Location. Yeah. 1:10:34 1 hour, 10 minutes, 34 seconds Great. Great. Uh Anoj you briefly touched upon digital O and you know my understanding is that you know this 1:10:41 1 hour, 10 minutes, 41 seconds segment in the advertising world has seen a subdued growth in the offline side. So you know just to take some bit 1:10:49 1 hour, 10 minutes, 49 seconds from your foresight of you know uh and your experience uh in this industry what you saw in 2019 is today happening in 25 1:10:57 1 hour, 10 minutes, 57 seconds are you seeing something develop in the digital ed space because uh mobile and and how 1:11:06 1 hour, 11 minutes, 6 seconds difficult conversions will be because mobile and CTV are more personalized device versus a digital which is a 1:11:13 1 hour, 11 minutes, 13 seconds public device. So uh if you can share some details on that how you are seeing you know foreseeing things in the next 3 to 5 years. 1:11:23 1 hour, 11 minutes, 23 seconds Thanks for that question Lokesh. Uh if you see our platform's definition doesn't say that it is a mobile 1:11:32 1 hour, 11 minutes, 32 seconds advertising company. It doesn't say that we are a CTV advertising company or a digital. Many of the competitors do that by the way. You can say somebody say we 1:11:40 1 hour, 11 minutes, 40 seconds are a mobile advertising. Some say we are CTV focused. Somebody say we are Facebook company, Google company. I mean they're very destination specific. 1:11:49 1 hour, 11 minutes, 49 seconds Whereas what is Apple defined as you're a consumer centric consumer platform company. So where is our focus is on the 1:11:57 1 hour, 11 minutes, 57 seconds 4 billion consumer connected devices that we are reaching out to. 1:12:02 1 hour, 12 minutes, 2 seconds Now those four billion consumers let's say if if your focus is on the consumer you would say that okay first and foremost we should be 1:12:10 1 hour, 12 minutes, 10 seconds on the consumer's mobile. It's very important right because if you don't have that touch point then you know the 1:12:18 1 hour, 12 minutes, 18 seconds it doesn't make sense right next you would say let's go from the mobile to the connected household there's a CTV screen there can we do something there 1:12:26 1 hour, 12 minutes, 26 seconds that will enhance the probability of conversion third you would say that okay should we limit Apple to just delivering 1:12:35 1 hour, 12 minutes, 35 seconds conversions with for our advertisers online which means the user is converting on the mobile phone on the inapp or on the you know app of the 1:12:42 1 hour, 12 minutes, 42 seconds advertiser or on the app of a marketplace. Is that all that we should do? 1:12:48 1 hour, 12 minutes, 48 seconds The advertiser also has physical you know stores and footprints. They also have their online store, their apps. 1:12:57 1 hour, 12 minutes, 57 seconds Why should we not say that okay the mo when this consumer goes out of their home or out of their office the mobile is always carried with them and when 1:13:06 1 hour, 13 minutes, 6 seconds they're out of the home and out of the office can we capture that incremental budget in the consumer's journey and only from 1:13:14 1 hour, 13 minutes, 14 seconds that angle alone the digital out of home comes into play as saying that okay the mobile is there because if you are on digital out of home can we make it from 1:13:23 1 hour, 13 minutes, 23 seconds a let's say a screen that everybody is ignoring and walking buy to an engagement screen with the mobile phone where you actually drive a conversion or 1:13:31 1 hour, 13 minutes, 31 seconds drive a footfall that can be tracked measured and only to that extent we are interested in making sure that we don't lose our consumers journey. So as long 1:13:39 1 hour, 13 minutes, 39 seconds as they have their mobile phone with them, any other connected device that they come in proximity with, we should have an ability to drive the probability 1:13:47 1 hour, 13 minutes, 47 seconds of conversion of that consumer for that advertiser and as a consumercentric platform we saying we are going to go where the consumer goes and therefore 1:13:56 1 hour, 13 minutes, 56 seconds these devices become important only in that context. So digital out of home will be a small part but it could be uh 1:14:03 1 hour, 14 minutes, 3 seconds an interesting one to do to drive what we call you know retail online to offline uh footfall driving and there are many advertisers who are absolutely 1:14:12 1 hour, 14 minutes, 12 seconds keen to do that especially for their high lifetime value users like you know those users who would buy from the brand online and also when they see a store 1:14:20 1 hour, 14 minutes, 20 seconds they want to walk in there so I think those are the kind of lifetime value users that we're converting for our advertisers and in that context it fits in but it's not the emphasis point. 1:14:31 1 hour, 14 minutes, 31 seconds Great. Great. That's it from my side. Thank you so much for that insight. 1:14:36 1 hour, 14 minutes, 36 seconds Thank you. Next question is from the line of Aron Prasad of Aendas Park. Please go ahead. 1:14:43 1 hour, 14 minutes, 43 seconds Um thanks uh for the followup opportunity. An my one question is on our LTV. You spoke about how LTV uh uh 1:14:51 1 hour, 14 minutes, 51 seconds is what is important for us to track. uh in a inflationary scenario does your customers LTV also go goes up in line 1:14:59 1 hour, 14 minutes, 59 seconds with the inflation or does it track higher than the inflation and if so does eventually the CAC budget also catches 1:15:07 1 hour, 15 minutes, 7 seconds up with the revised MTV and which may potentially benefit us uh if the inflation remains higher in the longer run 1:15:16 1 hour, 15 minutes, 16 seconds that's a very deep um and a very broad-based question on economics across various industry verticals that Apple is deeply focused on but I I think the 1:15:24 1 hour, 15 minutes, 24 seconds short answer is that as the GDP or the you know the disposable income of the 1:15:31 1 hour, 15 minutes, 31 seconds consumers go up I think their ability to spend that on the advertisers goods and service broadly should go up right so 1:15:39 1 hour, 15 minutes, 39 seconds inflation actually one makes things expensive for the consumer and that potentially could you know impact their disposable income but let's say in 1:15:47 1 hour, 15 minutes, 47 seconds growing economies over you know over a long period of time one would expect that the purchasing power is improving you know and as the economy grows the u 1:15:56 1 hour, 15 minutes, 56 seconds uh we would see that the CPC rates would grow and that's what we have seen at least in the last 10 years right across industry verticals we're seeing the CPC 1:16:05 1 hour, 16 minutes, 5 seconds uh uh part of the you know ecosystem with pricing we're able to grow our volume of business we're also able to increase our pricing and that's why we 1:16:13 1 hour, 16 minutes, 13 seconds are a you know in a very privileged position as a business um in the when I talk about LTV I'm just saying that not 1:16:22 1 hour, 16 minutes, 22 seconds all consumer conversions visions are the same, right? So, you know, my dad's driver in Lucknau may also be using an old version of his iPhone and my dad is 1:16:30 1 hour, 16 minutes, 30 seconds also using an iPhone. But let's say from the same car, from the same destination, two people are ordering food online, you 1:16:38 1 hour, 16 minutes, 38 seconds know, uh I I would think that the value of my dad's conversion would be much higher for our advertisers than his driver's conversion, right? So, I think 1:16:47 1 hour, 16 minutes, 47 seconds that that's the distinction we're making. How can we go and drive more premium higher lifetime value conversions for advertisers and tell 1:16:55 1 hour, 16 minutes, 55 seconds them that when you work with Apple you're working with a premium platform that algorithm is trained to find the highest ROI for you in driving 1:17:03 1 hour, 17 minutes, 3 seconds conversions for you and I think that's what we are trying to uh aspire towards and consistently pushing for and that fundamentally will move the CPCU much 1:17:12 1 hour, 17 minutes, 12 seconds higher and the margin profile much higher over time and that's the kind of um audience advertiser Intel that we are 1:17:20 1 hour, 17 minutes, 20 seconds verticalizing for that we are investing in which is what I was talking earlier when they said hey your gross margin is being invested into data and inventory 1:17:27 1 hour, 17 minutes, 27 seconds cost I said absolutely because we verticalizing towards premium inventories and driving you know towards that greater possibility ahead 1:17:36 1 hour, 17 minutes, 36 seconds no I understand that what I'm asking is while of course we are moving up the ladder from lower LTV to higher LTV 1:17:43 1 hour, 17 minutes, 43 seconds customers what I'm asking is uh at the LTV at the each comfort level also goes up uh once inflation settles at the 1:17:50 1 hour, 17 minutes, 50 seconds higher level. That is a uh that is the clarification I would like to see. 1:17:56 1 hour, 17 minutes, 56 seconds I'll take it. So I would I I wish I could answer it linked to inflation but I would basically say that the last 10 years trend is showing that the CPC rate 1:18:05 1 hour, 18 minutes, 5 seconds is going up and I think that is just simply a function of how the the economy is growing and how the consumer spending 1:18:13 1 hour, 18 minutes, 13 seconds power is growing. Uh just uh very brief answer on this uh uh we model at 2% 1:18:20 1 hour, 18 minutes, 20 seconds long-term average inflation rates uh as we do our long-term planning. Inflation is definitely are there in the economies 1:18:28 1 hour, 18 minutes, 28 seconds across geographies across economies. On an average we build about 2% inflation on a casual basis on a long-term basis. 1:18:38 1 hour, 18 minutes, 38 seconds Some years it will be high and some years will be dominant. Right? So it's a it's a it's a function of normal economics being booked into the business 1:18:46 1 hour, 18 minutes, 46 seconds planning. I hope that answers your question. 1:18:50 1 hour, 18 minutes, 50 seconds Uh understand one one bookkeep question for you. Uh Kapil, I'm sorry to interrupt Aron question. 1:18:58 1 hour, 18 minutes, 58 seconds Thank you. 1:19:00 1 hour, 19 minutes Thank you ladies and gentlemen. We will take that as the last question. I would now like to have the part to the management of comments. 1:19:11 1 hour, 19 minutes, 11 seconds Well, thank you very much for being on the call today and uh we look forward to a very very uh strong performance going forward into FY27. 1:19:21 1 hour, 19 minutes, 21 seconds Uh the tailwinds are strong, the foundation is strong and uh we're optimistic and bullish on how we will navigate all the challenges ahead. Um 1:19:30 1 hour, 19 minutes, 30 seconds both organically as well as inorganically we're looking forward to a fantastic year. Thank you. 1:19:36 1 hour, 19 minutes, 36 seconds Thank you. Thank thank you very much on behalf of Ambedut Capital that concludes this conference. Thank you all for joining us today and you may now 1:19:45 1 hour, 19 minutes, 45 seconds disconnect your