Alldigi Tech Ltd — Q4 FY26

Alldigi Tech Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=LF7loyi1wyY Published: 5 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the All Digitech Limited Q4 and FY26 earnings conference call. 0:09 9 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. 0:19 19 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on 0:26 26 seconds your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. 0:34 34 seconds Rajesh Lachani, head of investor relations and M&A. Thank you and over to you sir. 0:41 41 seconds Thank you Sapnali. Uh good morning everyone and welcome to our Q4 and FI26 earnings call. I'm pleased to introduce 0:48 48 seconds our newly appointed CEO Mr. Natrajan Lakshmanan whom we fondly call NAT. Net brings deep industry experience and 0:56 56 seconds strong strategic vision that will guide all digits next phase of growth. Joining him on the call is our CFO Ainas Jen. We 1:04 1 minute, 4 seconds will begin with opening remarks from management followed by a Q&A session where we'll address your questions. But before we proceed, I would like to provide a standard safe harbor 1:12 1 minute, 12 seconds statement. This call may contain certain forward-looking statements which are subject to risk and uncertaintities. 1:19 1 minute, 19 seconds uh actual results may differ from these statements. Uh with that I now hand over the call to Ned or to you Ned. 1:26 1 minute, 26 seconds Thank you Rajes. Good morning everyone. 1:29 1 minute, 29 seconds Thank you for joining the Q4 and FY26 earnings call. I start by appreciating your interest support and participation 1:38 1 minute, 38 seconds for all dig along with Mr. Avin Jane. We look forward to walking you through our performance and responding to your 1:45 1 minute, 45 seconds questions. And since this is my first uh interaction with all of you, I will start by giving a brief introduction of 1:52 1 minute, 52 seconds myself. [clears throat] As Rajes mentioned uh my name is Natrajan Lakshman. I'm called as NAT. I 1:59 1 minute, 59 seconds bring about 25 years of experience in the industry. About 15 years of which has been in the HR and payroll outsourcing industry and about 10 years 2:08 2 minutes, 8 seconds in the international BPM. So I come with a combination of international BPM outsourcing and HR and payroll 2:14 2 minutes, 14 seconds outsourcing. I've handled 500 million plus portfolios across the globe. In my past career, I have been associated with 2:24 2 minutes, 24 seconds brands like Accenture, Alli Solutions, NGR also known as Norcgate Arno, Saitel, 2:31 2 minutes, 31 seconds Vipro and Stream Global Services. Prior to joining as CEO of Aldge Tech, I was the chief operations officer for the 2:38 2 minutes, 38 seconds digitiz the group company. With that, I'll move towards the agenda for today. 2:44 2 minutes, 44 seconds We'll initially give you a business overview covering our lines of business and follow it up with detailed financial performance. Post that we'll open up for questions. 2:56 2 minutes, 56 seconds I'm pleased to report continued strong financial performance. Operationally, we have achieved steady revenue growth with a healthy IBIDA margin while continuing 3:05 3 minutes, 5 seconds to expand our offerings and capabilities. 3:09 3 minutes, 9 seconds On [clears throat] the financial performance for the full year FY26, revenue from operations stood at 598.7 3:16 3 minutes, 16 seconds crores up by 9.6% yearonear while Ibida was at 162 crores up 25% yearonear. 3:27 3 minutes, 27 seconds The growth has been broad-based across both the verticals, our BPM as well as the tech and digital businesses. In line 3:35 3 minutes, 35 seconds with our strategic intent, the overall share of our international business has increased by 3% up from 64 to 67%. 3:44 3 minutes, 44 seconds IBIDA margins improved to 27.1% in FY26 compared to 23.7% in FY2. 3:54 3 minutes, 54 seconds This is driven by our operations leverage and scale benefits. For the quarter, revenue from operations stood 4:01 4 minutes, 1 second at 154.7 crores, up by 5.9% yearonear and 1.3% quarteron quartarter. Ibida was 4:11 4 minutes, 11 seconds at 43.7 crores up by 24.2% yearonear. 4:16 4 minutes, 16 seconds Our cash collections continue to be robust. Our cash positions at the end of year stood at 147.7 crores while 4:26 4 minutes, 26 seconds collections for the full year increased to 626.1 crores up by 9% yearon year. And now moving to the operational performance. 4:36 4 minutes, 36 seconds On the operational performance, I'll cover the tech and digital business to start with. The tech digital business 4:43 4 minutes, 43 seconds reported a strong growth with the Q4 revenue growing 22.3% yearonear and 14.5% quarteron quarter. For the full 4:52 4 minutes, 52 seconds year, the tech and digital revenue grew by 16.5% yearonear to 156.2 crores. He posted 5:01 5 minutes, 1 second good additions to our managed employee records base and continue to lead India's managed services segment. We 5:08 5 minutes, 8 seconds processed 49.9 lakh employee records in Q4 taking the full year to 191.5 lakh 5:16 5 minutes, 16 seconds records reflecting strong operational momentum. We added 40.1 crores of new ACV across both new customer and 5:25 5 minutes, 25 seconds existing customer expansions. Our key service delivery metrics of payroll accuracy, on-time delivery and query 5:33 5 minutes, 33 seconds turnaround time continue to improve year on year setting new benchmarks. Uh moving to the DPM segment, the DPM 5:41 5 minutes, 41 seconds segment delivered stable performance with Q4 revenue at 110.4 crores up by4% 5:49 5 minutes, 49 seconds yearonear. For the full year, BPM revenue grew by 7.3% yearonear to 442.4 5:57 5 minutes, 57 seconds 4 crores supported by continued trends in the international business which now contributes 78% of the total CXM 6:05 6 minutes, 5 seconds revenue. The CXM is the VPN segment on a fullear basis up from 73% last year. We 6:12 6 minutes, 12 seconds added 54.1 cr of new ACV across both new customers and existing customer expansions. Our service delivery 6:20 6 minutes, 20 seconds continues to remain green and we continue to make efforts to infuse AI into our current customer landscape. 6:28 6 minutes, 28 seconds We've successfully completed migration for our India based customers to our SP4 platform. 6:35 6 minutes, 35 seconds By deployment of these platforms, we are looking at an efficiency of 3 cr peranom on our tech and digital business. 6:43 6 minutes, 43 seconds Diversity and inclusion increased by 1.2 2 percentage at 47.9. 6:51 6 minutes, 51 seconds We've set ourselves a target of 50%. 6:54 6 minutes, 54 seconds We're confident we'll be able to achieve this number. 6:58 6 minutes, 58 seconds We continue to receive high ratings uh and increasing feedback on social media platforms. This is reflected in our uh 7:06 7 minutes, 6 seconds the great place to work standing as well as our internal measurements. So we are at target of 4.5 against five. 7:15 7 minutes, 15 seconds A direct outcome of a continued focus on employee engagement is driving these results. We continue to encourage our 7:22 7 minutes, 22 seconds employees to participate in the CSR activities of the company. 7:28 7 minutes, 28 seconds Looking ahead, FY26 has further strengthened our foundation as all digital tech and digitiz solutions. Our strategy remains crystal clear. 7:38 7 minutes, 38 seconds deepening client relationship, expanding our global reach, driving efficiency through technology and AI and building a 7:45 7 minutes, 45 seconds future ready high performing team. With our platform scaled, sales channels expanded and execution discipline 7:52 7 minutes, 52 seconds intact, we're confident of sustaining our growth momentum going forward. With this, I hand over to Ain to walk us through the detailed financials. Post 8:01 8 minutes, 1 second that we open up for questions. Thank you, Ain. 8:04 8 minutes, 4 seconds Thanks, Matt. Uh greetings everyone and uh thank you for your interest in all digit. Uh let me begin with our performance on the operational revenue 8:12 8 minutes, 12 seconds front. Revenue for the quarter is stood at 154.7 crores reflecting a growth of 5.9% year-over-year and 1.3% quarter 8:21 8 minutes, 21 seconds over quarter. For the full year FI26 our revenue reach INR 598.7 crores representing a growth of 9.6% over FI25. 8:31 8 minutes, 31 seconds Both business verticles BPM and TND have contributed to this growth. In the BPM segment, Q4 revenues stood at 110.4 8:39 8 minutes, 39 seconds crores broadly flat Y. International BPM revenues grew 8.7% Y in Q4. For the full 8:47 8 minutes, 47 seconds year, BPM revenues grew 7.3% Y to INR 442.4 crores with growth continuing to 8:54 8 minutes, 54 seconds be driven by international markets which remain the dominant contributor to BBM revenues. In the TND business, revenue 9:01 9 minutes, 1 second for Q4 is stood at INR 44.3 crores, marking a strong 22.3% Y growth and 9:07 9 minutes, 7 seconds 14.5% QQ growth. On a yearly basis, the TND revenue grew by 16.5% Y to INR 156.2 9:16 9 minutes, 16 seconds crores. Our employee reports uh volumes have increased to 191.5 lakhs for FI26 9:24 9 minutes, 24 seconds reflecting continued strong operational momentum. 9:28 9 minutes, 28 seconds Now moving on to margins. Abita for Q4 in at INR 43.7 crores growing 24.2% Y 9:37 9 minutes, 37 seconds for the full year. Aida was at INR 162 crores reflecting a strong 25% Y growth with margins improving to 27.1%. 9:46 9 minutes, 46 seconds In the BPM segment segment margin for Q4 stood at INR 15 crores. For a full year segment margin was INR 62.3 crores 9:55 9 minutes, 55 seconds reflecting a growth of 16.8%. 8% by in the TND segment segment margin for Q4 stood at INR 19.5 crores with margins 10:04 10 minutes, 4 seconds remaining strong at 44%. For the full year segment margin was 66.6 crores reflecting a robust growth of 28.9% 10:13 10 minutes, 13 seconds YI driven by higher volumes and improved operating leverage. 10:18 10 minutes, 18 seconds Now coming to the bottom line uh PAT for the quarter stood at INR 28.9 crores reflecting a strong increase both on Y 10:26 10 minutes, 26 seconds basis 49.7% and on Q basis 38.6%. 10:31 10 minutes, 31 seconds For the full year FI26 PAT estrod INR 82.2 2 crores largely stable compared to last year with pack margins at 13.7%. 10:41 10 minutes, 41 seconds Flat Y on cash flows our operating cash flow for the quarter was INR 45.3 crores with 10:48 10 minutes, 48 seconds OCF to AITA conversion remaining strong at 103.8%. 10:53 10 minutes, 53 seconds For the full year OCF stood at INR 144.1 crores reflecting healthy cash generations with conversion at 88.9%. 11:01 11 minutes, 1 second With this I conclude the financial highlight and now hand over the session to the moderator for taking up your questions. 11:10 11 minutes, 10 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 11:18 11 minutes, 18 seconds star and then one on the touchstone telephone. 11:22 11 minutes, 22 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants you are requested to use hands while asking a question. 11:32 11 minutes, 32 seconds Ladies and gentlemen, we will wait for a moment while the question to assembles. 11:42 11 minutes, 42 seconds A reminder to all you may press star and one to ask a question. 12:01 12 minutes, 1 second We will take the first question from the line of Hash Kunanani from a AON alpha. Please go ahead. 12:09 12 minutes, 9 seconds Yeah. Hi, thanks for the opportunity. U couple of questions from my end. uh first is uh if you look at the payroll 12:18 12 minutes, 18 seconds processed in the HRO business uh this uh number has been growing at you know uh 10% plus by over the last few quarters 12:26 12 minutes, 26 seconds and revenue growth has been in line but this quarter you know revenue growth is significantly higher than uh the payroll 12:34 12 minutes, 34 seconds process number so is this because of uh you know uh our foray into the international markets where the 12:41 12 minutes, 41 seconds realization is higher and can this divergence continue um over the next few quarters. 12:52 12 minutes, 52 seconds Thanks [clears throat] for the question, Sash. Uh you're right. Our payroll process has been growing year on year. 12:59 12 minutes, 59 seconds Uh so the revenue if you you have to look at it not exactly directly proportional to the growth of the number 13:06 13 minutes, 6 seconds of employees because there are revenue streams on the payroll side which comes from our one-time change requests. uh as 13:14 13 minutes, 14 seconds well and also so uh there are configuration changes there are tax proof watching uh there's 13:21 13 minutes, 21 seconds the new wage code implementation so there are revenue streams that come from those one-time activities as well and 13:28 13 minutes, 28 seconds also our increase in international uh business also gives us the benefit from the currency fluctuation so it's a 13:36 13 minutes, 36 seconds combination of all these factors while uh we will not be able to comment on the currency fluctuations which could be a windfall gain that we would get. 13:45 13 minutes, 45 seconds Definitely we should look at a revenue which will be slightly higher than a direct proportion to the number of employees given that we are adding a 13:54 13 minutes, 54 seconds number of customers on. So there will be the one-time configuration changes and one-time onboarding charges that will continue to uh come through. 14:05 14 minutes, 5 seconds Understood. So just to double click on that. Uh so uh does that mean our realization and margin in the 14:12 14 minutes, 12 seconds international HRO business is similar to the domestic one? 14:18 14 minutes, 18 seconds So hush uh international margins typically tend to be slightly higher but uh as you would note our domestic margin 14:24 14 minutes, 24 seconds itself are uh pretty decent. So so yeah both the domestic and international margins remain uh uh reasonably good. 14:35 14 minutes, 35 seconds Understood. Understood. Um, moving on to the uh BPO business. 14:41 14 minutes, 41 seconds Uh, there was a headcount decline in this uh quarter and I think that has been the that that has led to you know 14:48 14 minutes, 48 seconds uh a revenue decline also. Um so is there is this client specific or 14:56 14 minutes, 56 seconds anything to call out uh in this particular segment? 15:00 15 minutes Yeah. So [clears throat] you you're right in your observation hush. Yes, there's been a headong decline and uh 15:07 15 minutes, 7 seconds this is a strategic move that we've done of moving away from some of our low margin business and also a strategic 15:15 15 minutes, 15 seconds intent of increasing our international business compared to the domestic one. 15:20 15 minutes, 20 seconds So this headcount decline is a reflection of uh that intent. 15:28 15 minutes, 28 seconds Understood. And uh so is this rationalization exercise uh will this continue for a few quarters or was this just a one quarter uh impact? 15:40 15 minutes, 40 seconds We should anticipate this uh probably not on a quarter timeline but you know for the FY27 we would continue to 15:48 15 minutes, 48 seconds exercise this intent of moving away from low margin business. uh even you know as as of today from our portfolio we still 15:56 15 minutes, 56 seconds carry about uh you know 10% of our business into this uh you know segment. 16:02 16 minutes, 2 seconds So we'll continue to move away from this business uh based on the you know macro uh conditions of the business. 16:12 16 minutes, 12 seconds Understood. Understood. And lastly uh Natraan sir uh I know early days but you know what has been the focus areas uh in 16:19 16 minutes, 19 seconds the company since you've joined and you know where do you see this uh company 2 three years from now from a you know segmental aspect what happens to the HRO 16:28 16 minutes, 28 seconds business the PPM business so on and so forth thanks for that question Kash yeah it's uh it's still early just about a month 16:37 16 minutes, 37 seconds old but uh the direction is very clear we want to grow both the segments of the business and uh no more move towards 16:46 16 minutes, 46 seconds technology enablement rather than just an uh FTE business on the DPM side and on the payroll side continue to enhance 16:55 16 minutes, 55 seconds our uh platforms and you know there is a number of plans that we have there is a HRMS version two that we'll be releasing 17:03 17 minutes, 3 seconds this year which is an AI enabled platform we also looking at coming up with a payroll analytical module which 17:10 17 minutes, 10 seconds is an AI based analytical module you. So you'll see more and more AI based offering which is aimed at helping us 17:18 17 minutes, 18 seconds from an efficiency perspective uh from an internal all digit perspective uh from an external customer aspects we 17:25 17 minutes, 25 seconds looking at the end employees my employees of my customer getting the benefit of AI features and also from a 17:34 17 minutes, 34 seconds customer stakeholder perspective they'll get more value add from the business in terms of analytics and business insights they can 17:42 17 minutes, 42 seconds So this is on the tech and digital business. Similarly on the EVM business, we've already started infusing AR into our existing operations. Some of it 17:51 17 minutes, 51 seconds which is already customerf facing. So going forward definitely there's going to be a growth which will be enabled by 17:58 17 minutes, 58 seconds technology and AI assets. So that's the mandate that we're looking at and we already seeing initial shoots because 18:06 18 minutes, 6 seconds some of it is uh already in the user acceptance testing. We should release this in the market soon. 18:14 18 minutes, 14 seconds Understood. Thanks a lot for this. I have a couple of more questions, but I'll just come back in the queue. Thank you. Thanks. 18:22 18 minutes, 22 seconds Thank you. We will take the next question from the line of Kesha Girk from Counter Cyclical PMS. Please go ahead. 18:30 18 minutes, 30 seconds Sir, I wanted to understand that which part of our business is most at risk from the AI. 18:40 18 minutes, 40 seconds Thanks for that question Kesha. Uh I wouldn't call it a risk you know it's both you know a challenge and an 18:48 18 minutes, 48 seconds opportunity. So you know it's it's not overall a risk you know and this is something which we've identified uh know 18:55 18 minutes, 55 seconds now and that is the reason why you see a lot of AI and you know uh enhancements that is coming in and AI infusion that 19:03 19 minutes, 3 seconds is coming in and uh if you note it clearly we're looking at AI across our business end to end internal operations 19:12 19 minutes, 12 seconds which is going to result in efficiency accuracy and turnaround times and from an external perspective customers and 19:19 19 minutes, 19 seconds the customers and employees both on the DPM and the second digital uh sites get to experience the AI features and take 19:27 19 minutes, 27 seconds advantage of them and also enhance the value addition in terms of the outsourcing business through our AI 19:34 19 minutes, 34 seconds analytics. So while you know there is one way of looking at it as a risk it's also an opportunity for us and uh we are 19:42 19 minutes, 42 seconds already you know seeing this interest from all of our existing customers as well as for our new customers that we are onboarding uh that know we are 19:50 19 minutes, 50 seconds looking at AI based solutions AI based offering and that's something which we are already uh in the competition so I 19:57 19 minutes, 57 seconds would say we are neck to net in terms of market from any other competitors but probably in some areas we are a little ahead of the curve and That's the 20:05 20 minutes, 5 seconds feedback that we've been getting from our customers, right? And also uh our fullear revenue 20:12 20 minutes, 12 seconds went up by uh roughly 10% and I believe the Indian currency itself has depreciated by more than that or around 20:21 20 minutes, 21 seconds uh the similar magnitude in the past one year. So basically what has been the constant currency growth in the revenue if at all for FI26? 20:31 20 minutes, 31 seconds Yeah, thanks Kesho for your question. Uh so u 3.3% is the growth uh attributable 20:38 20 minutes, 38 seconds to the currency depreciation and uh 6.3% is the growth attributable to uh the various efforts uh uh which the company has been making. 20:47 20 minutes, 47 seconds Okay, understood. 20:49 20 minutes, 49 seconds And uh so can we expect these margins that we did in the last quarter of around 28% to sustain going forward or 20:58 20 minutes, 58 seconds is there any one-time effect of currency depreciation and so on? 21:05 21 minutes, 5 seconds So see we expect the margins to remain robust uh like in our previous calls also we have guided that we typically target one to one and a half% kind of 21:14 21 minutes, 14 seconds margin growth um yearon-year basis and we'll continue to uh derive that uh 21:22 21 minutes, 22 seconds focus on that and as of now I do not foresee uh any significant challenges in terms of u currency fluctuation 21:29 21 minutes, 29 seconds affecting our revenues on a negative side. 21:33 21 minutes, 33 seconds Understood. So we can expect around 29% full margin full year F29 uh FY27 21:41 21 minutes, 41 seconds OPM um Kesha like you know typically we do not give a particular number in terms of 21:48 21 minutes, 48 seconds a future guidance but yes as you rightly pointed out uh as currency depreciates uh that typically adds up uh margin uh 21:57 21 minutes, 57 seconds so so yes margin is expected to increase but we cannot give you a ballpark number. Understood. So uh so for the 22:06 22 minutes, 6 seconds current year what kind of revenue growth? I mean in the past we were talking about roughly 15% kind of uh revenue caggr but last year clearly it 22:14 22 minutes, 14 seconds was far below that. So what was the reason for that and now what is the outlook? 22:20 22 minutes, 20 seconds Yeah. Okay. So I'll I'll answer the first uh part you know in terms of uh why you know our growth has been you 22:28 22 minutes, 28 seconds know below that mid- teens is because of the strategic uh intent. I already answered we're moving away from some of our low margin business. So we're 22:37 22 minutes, 37 seconds looking at more international and high margin business that comes into the business. Uh and that is something which you've already initiated. So that's one 22:45 22 minutes, 45 seconds reflection that you see and also you know there are other industry factors. 22:50 22 minutes, 50 seconds So if we compare ourselves with the industry growth on both the segments you know we are slightly above uh the industry growth that we've seen for the 22:58 22 minutes, 58 seconds last year. So from that perspective yes ideally we would like to be far better. 23:03 23 minutes, 3 seconds So again this year you know while we looking at uh the mid teams again so we should see you know the mid team growth 23:11 23 minutes, 11 seconds for this year as well in terms of revenue. 23:14 23 minutes, 14 seconds Understood. So sir thank you very much and best of luck. Thanks. 23:20 23 minutes, 20 seconds Thank you. We will take the next question from the line of Raguram from your India ventures. Please go ahead. 23:30 23 minutes, 30 seconds Hi uh Matt, am I here? Uh am I audible? Yes, I think you're audible. 23:37 23 minutes, 37 seconds Okay. So, I had a couple of questions on the HRO and a couple of questions on the BPM side. On the HRO, obviously, we are 23:45 23 minutes, 45 seconds seeing um as Hush also pointed out um you're seeing significantly faster growth on a quarteronquarter basis as 23:55 23 minutes, 55 seconds well as on a year-on-year basis. So is this something that uh you also mentioned that revenue growth will continue to be higher than the employee 24:04 24 minutes, 4 seconds based growth. So uh is this something that is uh now uh built in from a sales 24:11 24 minutes, 11 seconds we have a pretty strong sales team is what I have been able to at least understand from from various calls that 24:18 24 minutes, 18 seconds I have had before and u you coming from uh HRO and international HRO kind of 24:27 24 minutes, 27 seconds perspective uh I would imagine this is something that uh that is right up your alley. So that will be my first question 24:36 24 minutes, 36 seconds first outlook uh not really an outlook but uh in terms of how you see HRO going forward. The second is on u the EITA 24:46 24 minutes, 46 seconds margin. Abinat mentioned that the AITA margin for both HRO domestic and HRO international are anyway pretty 24:53 24 minutes, 53 seconds significantly high. So this is something that u is is how is that as compared to 25:00 25 minutes how you have seen in your previous u in your previous companies and how do you see it going forward uh in all itself 25:08 25 minutes, 8 seconds that will be my two questions on hro on bpm uh the observation that I had is that 25:15 25 minutes, 15 seconds the last burst of growth as you can well imagine you have been on the international side for for a significant 25:21 25 minutes, 21 seconds amount of time The BPM is not really a uh year on year gradual growth. It's a 25:30 25 minutes, 30 seconds step growth. If you get a large client, you get a burst of growth and you go into the next step. The last burst of 25:37 25 minutes, 37 seconds growth that came in for Aldigi has been from the large healthcare clients that we that we onboarded about 18 months 25:44 25 minutes, 44 seconds back or nearly 24 months back. that is something that is missing in the last about 12 months in terms of one large 25:52 25 minutes, 52 seconds one or two large brands getting onboarded. How do you see and what is the what what is the time frame and how do you see 26:01 26 minutes, 1 second Ali breaking that kind of a uh barrier that uh has been has been holding back 26:07 26 minutes, 7 seconds its growth on GPM. And the second one is obviously you mentioned that we are moving out of uh uh the low margin uh 26:17 26 minutes, 17 seconds some domestic uh clients but uh overall margin outlook after this move out uh there is there is obviously something 26:25 26 minutes, 25 seconds that you have in mind from an aida margin perspective if you can please share that that would be great. So two questions on HRO two questions on BPM please. Thank you so much. 26:34 26 minutes, 34 seconds Sure. Sure do. Uh I'll I'll answer the questions one by one. The first question on the HRO outlook uh we should continue 26:43 26 minutes, 43 seconds to see a growth uh Ragu and uh yes uh margin wise you know if I if I compare 26:50 26 minutes, 50 seconds it with my previous experience we pretty much there in in some cases we are slightly higher uh and our system has 26:58 26 minutes, 58 seconds been very strong and we continue to make sure that no they remain strong and we've strategically made a decision of 27:06 27 minutes, 6 seconds now uh focusing ing our efforts higher on the international mix. So even on the 27:13 27 minutes, 13 seconds HRO side, we would continue to see a considerable growth on the international side along with our domestic side as 27:21 27 minutes, 21 seconds well. So the mix of international business we expect it to continue to grow quite obviously because that is going to give us a better margin and 27:29 27 minutes, 29 seconds also those are markets that uh you know we we have a sweet spot in terms of where we play compared to the competitors that are available in that 27:38 27 minutes, 38 seconds particular market. So HRO definitely you will see the number of employee records constantly going up and also from a 27:46 27 minutes, 46 seconds revenue profile the revenues should like be higher in terms of a proportionate factor on the number of employees that 27:54 27 minutes, 54 seconds we'll be managing because of the international mix that will come into picture and compared it with the previous experience or the other 28:02 28 minutes, 2 seconds competition in the market definitely we are very competitive and in some cases I would say probably we are above the 28:10 28 minutes, 10 seconds other competition uh because of you know various reasons from an operational leverage that we bring in 28:17 28 minutes, 17 seconds uh on so I answered your uh outlook as well as the IBIDA margin IDA margin is pretty strong for our domestic it'll be 28:25 28 minutes, 25 seconds higher than our domestic business on the international side on the HRO aspect as well I hope I've answered both your questions on the HRO side 28:34 28 minutes, 34 seconds yes yes I'll move to the DPN BPM you're you're absolutely right in terms of uh the 28:41 28 minutes, 41 seconds prediction of a behavior. Yeah, BPM growth is more depending on the client size and when it comes on board. Yeah, 28:49 28 minutes, 49 seconds our last big client has been the healthcare client and that has been a good journey. We've been constantly growing with that particular client and 28:56 28 minutes, 56 seconds it's you know very strong satisfied client that we have which continues to expand you know even today and we expanding we are expanding that client even into FY27. 29:08 29 minutes, 8 seconds When do we see one more client like that we should you know it's it's I I'm not giving you a timeline but I can give you 29:15 29 minutes, 15 seconds an insight in terms of our pipeline. uh from from a pipeline perspective we do have some pretty big names that uh 29:23 29 minutes, 23 seconds brands that we are actually targeting in fact uh we've been in discussion with them in FY26 as well but when you look 29:30 29 minutes, 30 seconds at uh uh you know the global macroeconomic conditions with the war coming in uh there are certain decisions 29:39 29 minutes, 39 seconds you know that uh were actually put on hold by the customers because you know they wanted to move away from that uncertaintity especially this help I 29:48 29 minutes, 48 seconds mean impacted the health care clients with that big bill of health that was expected to come. So uh with those 29:55 29 minutes, 55 seconds things passed us now we should we should anticipate that you know at least we get one big break. Uh we have it in the 30:02 30 minutes, 2 seconds pipeline so we know we have our target clear. We've been engaging in keeping these clients warm. So uh we should we 30:10 30 minutes, 10 seconds should see something soon but I don't want to put a time frame because there are conditions that uh you know it's not easy to speculate. 30:21 30 minutes, 21 seconds So uh that's under and on the margin part uh raguram uh I 30:29 30 minutes, 29 seconds think already ain addressed it. We should look at about 1 to 2% improvement for FY27 as well. That's our endeavor 30:38 30 minutes, 38 seconds and we are positive we'll be able to deliver that. 30:43 30 minutes, 43 seconds Okay. Uh just a follow up on that BPM side. Uh Matt uh essentially we have been trying to get into the RCM 30:51 30 minutes, 51 seconds business. There has been obviously some uh last quarter there was uh a hint that 30:59 30 minutes, 59 seconds some some RCM business initially would start to come in with maybe some 40 seats 45 seats kind of a thing but uh 31:09 31 minutes, 9 seconds there were also some indications that uh previously had been given to us that if we don't really get into it in an 31:17 31 minutes, 17 seconds organic way we would also consider an inorganic way of uh of entering that business. How is the outlook for that? 31:24 31 minutes, 24 seconds How's how's the thinking going for that? 31:28 31 minutes, 28 seconds So RCM is definitely one of our uh you know focus areas or the area of interest 31:35 31 minutes, 35 seconds for us going you know for FY27 and as you rightly mentioned we've already entered into the RCM for so we've been 31:43 31 minutes, 43 seconds uh processing the RCM BPM part for almost uh a quarter now and uh the good news is it is scaled up it's doubled up 31:52 31 minutes, 52 seconds now so from where we started you know today we are double in terms of FTS and there is more growth that we are talking to the client with this existing client 32:01 32 minutes, 1 second itself. So for FY27 there are three major industry segments on the BPM side that we are looking at healthcare and 32:09 32 minutes, 9 seconds RCM international uh insurance and international collections and uh in all these three aspects you know we are very 32:18 32 minutes, 18 seconds well experienced and we considered one of the industry experts having the number of years that we have and especially the uh client support and the 32:26 32 minutes, 26 seconds client feedback that we have uh in terms of our performance. So these are three specific uh you know industries that we're going to target from a BPM perspective. 32:39 32 minutes, 39 seconds Okay. So on the client collection side that is something that we have been expecting growth because of the our 32:46 32 minutes, 46 seconds strongest and longest lasting longest standing client uh having gone through a significant expansion. So we look 32:53 32 minutes, 53 seconds forward to that. Thank you so much Matt and uh wish you all the very best in in leading all alli as uh mentioned uh into 33:03 33 minutes, 3 seconds a much much stronger and uh different level of growth itself. Thank you so much. Thank you Raur. 33:13 33 minutes, 13 seconds Thank you. We will take the next question from the line of web of Chachani from TCGNC. Please go ahead. 33:21 33 minutes, 21 seconds Hi, thank you for the opportunity. uh congratulations on the decent set of numbers. So uh my first question is 33:29 33 minutes, 29 seconds regarding the margins. So when I see the margins reported in our uh investor PPT which is for the full year at around 162 33:37 33 minutes, 37 seconds cr rupees versus uh when I look at the segmental margins which is for the full 33:43 33 minutes, 43 seconds year FI26 at around 129 odd crup. So uh what I'm missing in there and what is 33:50 33 minutes, 50 seconds the what is leading to this gap if you can help me with that. 33:55 33 minutes, 55 seconds Sure. Uh so seement margins are reported at a PBT level. Uh while um reported 34:01 34 minutes, 1 second AITA margins um are at AITA level. So uh basically your depreciation finance costs etc. uh they are also considered while arriving at segment margins. 34:14 34 minutes, 14 seconds Okay. But then uh when I look at the segment margins the finance cost has generally been treated after your uh 34:20 34 minutes, 20 seconds segment total segmental results right and even when I consider depreciation then also I I find a different around 34:28 34 minutes, 28 seconds 100 to 200 basis point. Uh so yeah 34:37 34 minutes, 37 seconds uh no soap basically um only the unallocable costs are uh taken out u and 34:45 34 minutes, 45 seconds uh there might be a impact of other income and expenses also because uh for uh segment margin uh these things get uh 34:53 34 minutes, 53 seconds eliminated and um overall if you want to understand more about in detail maybe we can connect offline. time. 35:01 35 minutes, 1 second Sure, I'll do the same. Thank you. Yeah, that's all from my side. 35:07 35 minutes, 7 seconds Thanks for Thank you. We will take the next question from the line of Matri Sha from Sapphire Capital. Please go ahead. 35:16 35 minutes, 16 seconds Yeah. Hello. Yes. Hello. 35:20 35 minutes, 20 seconds Yeah. Good morning. Uh a few questions again on the margins. So you mentioned that we have kind of rationalized our 35:28 35 minutes, 28 seconds business on the BPM side. We're getting away with the low margin business and kind of moving to more international client. U so where do you see these uh 35:36 35 minutes, 36 seconds margins in the BPM side growing? Because you've targeted a 1 to 2% growth. Um what sort of growth drivers are we expecting will be more from the BPM 35:44 35 minutes, 44 seconds side, more from the HRO side? A bit more color on that if possible. 35:51 35 minutes, 51 seconds [clears throat] 35:51 35 minutes, 51 seconds So uh from a BTM margins perspective uh we should continue to see the margins if 35:59 35 minutes, 59 seconds you look at our Q4 remain at 13.6% 6% and uh we expect these margins to be 36:07 36 minutes, 7 seconds maintained given that you know BPO and whereas uh know so we we should see that uh you know around that 13 14% margin 36:16 36 minutes, 16 seconds continuing on the BPM segment uh this as we move away from the low margin business uh you know this this is something which should anticipate but 36:24 36 minutes, 24 seconds again as I said our low margin business currently is just about 10% of the portfolio so it should not make much of an impact there'll be some minor so we 36:33 36 minutes, 33 seconds should be able to see these margins maintained going forward. 36:37 36 minutes, 37 seconds Okay. Um uh but we've seen a bit of a degrowth on the margin. So like QoQ especially any sort of one-off that 36:46 36 minutes, 46 seconds happens because of that there was a deg so uh see Q degree. 36:57 36 minutes, 57 seconds uh so uh there was some one-time u uh leave policy alignment which we did with our holding company and subsequent with 37:05 37 minutes, 5 seconds there was certain uh reversals uh so so you can treat that quarter as aberation if otherwise if you see from uh Q3 25 37:14 37 minutes, 14 seconds onwards we have been in that 11 to 14% range and which pretty much uh we we currently continue and uh would target 37:22 37 minutes, 22 seconds to further enhance this uh going forward as uh communicated by that okay And on the TND side the segment 37:29 37 minutes, 29 seconds also reach close to 44%. So you see them sustaining with more international clients coming in and how do you see the 37:36 37 minutes, 36 seconds split of the international clients coming in on the TD uh TND side. What proportion would they contribute going forward? 37:44 37 minutes, 44 seconds Yeah. So see we have seen uh uh good growth in international markets especially uh you'll see uh quarter 4 um 37:53 37 minutes, 53 seconds uh has been a good uh growth. we have been consistently having about 60% plus of our ACV wins from international 38:00 38 minutes clients. So we we do expect uh that international u uh business in the TND 38:07 38 minutes, 7 seconds segment will also pick up. Uh having said that as I mentioned uh the focus overall is uh to uh further enhance the 38:15 38 minutes, 15 seconds segment margins of this business and there are multiple um uh activities or um projects which are currently going on 38:23 38 minutes, 23 seconds u not just relating to diversification into different geographies um by virtue of our international presence but also 38:32 38 minutes, 32 seconds by way of inclusion of AI in our operations by way of um uh focus on the product which Nat mentioned some time 38:40 38 minutes, 40 seconds back. So all those things uh should help us uh uh to maintain and pro probably uh even perform better going forward. 38:50 38 minutes, 50 seconds Um and the mid teams growth which segment do you expect to contribute more? Will it be the TNB or the BPM? How do you see the split between those two 38:59 38 minutes, 59 seconds changing? Because once we have a higher proportionate of the HR segment, our margins will kind of improve a lot um to a much more healthier number. So how do 39:08 39 minutes, 8 seconds you see this proportion changing in the next two to three years? 39:13 39 minutes, 13 seconds See uh from an overall proportion perspective you know we we we should see uh the tech and digital business growing 39:23 39 minutes, 23 seconds uh but if you look at both the segments definitely there will be growth on both the segments but uh the growth rate on the tech and digital is expected to be 39:31 39 minutes, 31 seconds slightly higher compared to the BPM business. 39:36 39 minutes, 36 seconds Okay, that is great. Um, any inorganic acquisitions in the timeline and in the lookout maybe next year, next to next year? 39:45 39 minutes, 45 seconds Uh, we constantly are evaluating opportunities uh that would align with our strategy metrics, but uh you know 39:54 39 minutes, 54 seconds nothing that you know I'll be able to openly disclose now in terms of something that's going to close. But constantly we are evaluating on both the 40:02 40 minutes, 2 seconds sides of the businesses. uh in terms of something which will be uh good which will align us from a strategic perspective. Uh once we have something 40:10 40 minutes, 10 seconds which is finalized you know we'll we'll make those announcements and make it public. 40:15 40 minutes, 15 seconds Okay, that is great. Thank you all the best. Thank you man. Thank you. 40:21 40 minutes, 21 seconds Thank you. We will take the next question from the line of Shunker from one of financial consultants. Please go ahead. 40:30 40 minutes, 30 seconds Yeah. Hi, good morning. Um thanks for this. Um Mr. Natraan, your experience spans over uh Accenture also where 40:38 40 minutes, 38 seconds you've seen all DG as a client also and then as part of Digitide you've had a chance to see it outside in and then now 40:46 40 minutes, 46 seconds you're inside out. If you can just make us understand what how do you size this HRO opportunity and what do you think is 40:55 40 minutes, 55 seconds the right to win? where are the gaps and how should we kind of see all DG evolve 41:02 41 minutes, 2 seconds um that is the start you know starting point maybe I'll follow up with a few more sure okay so uh all if if I look at 41:11 41 minutes, 11 seconds allig and all sec even prior to my accenture tenure I always uh you know 41:18 41 minutes, 18 seconds have kept all sec in my radar from 2010 onwards because uh know used to be one of my competition at that point of time 41:27 41 minutes, 27 seconds uh the strength of all comes basically from two prospects uh strength one is 41:34 41 minutes, 34 seconds the the platform the platform is a 100% owned IP and also it's one of the strongest platforms if you look at uh 41:43 41 minutes, 43 seconds compared to the competition and the various platforms that I have personally experienced with this is one of the very strong platforms with flexibility while 41:52 41 minutes, 52 seconds there are a lot of global platforms that is available which claims to cater to the countries or the regions that we 42:00 42 minutes support. uh while it can be robust but it might not be having the flexibility with our case you know we have both a 42:08 42 minutes, 8 seconds robust performance as well as the flexibility which makes it very interesting for clients and especially for large clients you know who want to 42:17 42 minutes, 17 seconds have a global uh solution but at the same time the flexibility of the local countries that's a very sweet spot that 42:26 42 minutes, 26 seconds uh all set is pretty strong on and we're continuing to strengthen that with the AI intervention that is that we are bringing in. The second part is the 42:34 42 minutes, 34 seconds operations. Uh from a operational performance perspective while you know usually it's mentioned in a fleeting 42:41 42 minutes, 41 seconds statement that you know we are continuing to improve year on year. If you look at the last you know five years or close to a decade uh you know our 42:50 42 minutes, 50 seconds performance has been consistently in the topmost bucket on accuracy and turnaround time and especially in the 42:57 42 minutes, 57 seconds TND business on the payroll accuracy and timelin uh timeliness are very very critical and it is always expected as a 43:05 43 minutes, 5 seconds given and that's a very solid performance that we've been able to manage and also from an efficiency and productivity perspective we are one 43:13 43 minutes, 13 seconds amongst the best in the industry or I would say probably we're leading the chart in terms of uh productivity and you know operational efficiency that we 43:21 43 minutes, 21 seconds have. So we have a combination of a very strong service delivery operations team and also backed up by a very strong 43:29 43 minutes, 29 seconds technology product which has combination of strength, robustness and flexibility. 43:36 43 minutes, 36 seconds So these this this is where uh our evaluation is usually whenever you know a client looks at us from an all digit 43:43 43 minutes, 43 seconds tech perspective on the TNB side both these things will stand out. We are a subject matter expert and we have our product to support us. 43:55 43 minutes, 55 seconds Answer the question. 43:56 43 minutes, 56 seconds Yeah that that helps. But you know if you can just also help us understand that uh you know when a client is looking at us is it that what really is 44:05 44 minutes, 5 seconds that one or two things which helps us win? What is the right to win in this in the sense are we easier to customize is 44:11 44 minutes, 11 seconds that one of the reasons or maybe u the you know the kind of uh pricing that we can give because of our scale is that 44:19 44 minutes, 19 seconds one of the advantages uh that is on the domestic side and on the international side um in you know if you can just help us understand um how has the 44:28 44 minutes, 28 seconds international sales engine presence has changed because we are seeing a decisive shift towards international even on the 44:35 44 minutes, 35 seconds order book side even on the revenue side and you're guiding for an enhancement from there from such a high level itself. Uh so if you can just understand 44:43 44 minutes, 43 seconds you know what is it that working for us is it just pricing is the largest labor that works for us or is customization and the other point is from a sales 44:51 44 minutes, 51 seconds perspective today how much of the sales get concluded at a CFO and a CEO level and how much gets concluded at a HR department level. 45:01 45 minutes, 1 second Okay. So, so the first part uh from a evaluation perspective uh you know it's a combination price definitely is one of 45:09 45 minutes, 9 seconds it you know we are very competitive when it comes to price and as you rightly pointed out it's our scale that helps us uh give that kind of a price point uh 45:19 45 minutes, 19 seconds flex I told you flexibility and stability we've been handling a number of large clients pretty big brands for 45:27 45 minutes, 27 seconds uh more than you know 10 years plus and some of our accounts have been for more than 20 years and very large you know 45:34 45 minutes, 34 seconds about 300 3.5 lakh employees per month plus is something which we handle. So the stability gives the confidence in 45:43 45 minutes, 43 seconds terms of performance and the flexibility uh gives the employee satisfaction that they look at uh especially you know for 45:52 45 minutes, 52 seconds each of the local and when you look at a global solution you'll be able to plug in. So domestically it's the flexibility 45:59 45 minutes, 59 seconds and the configuration aspect. It's easier to configure our product and we're quick in terms of turnar around time. Our customizations are you know 46:08 46 minutes, 8 seconds more specific and we are more open for flexible uh you know customizations from a client perspective. So that makes it 46:15 46 minutes, 15 seconds more attractive. Price definitely is one of the factor. Stability is another factor. So these are the factors that the domestic looks at from an 46:22 46 minutes, 22 seconds international client portfolio perspective. Along with these three, our product is also very compatible with the 46:32 46 minutes, 32 seconds global solutions. When you look at these international companies, they're usually multi-country opportunities and you know they have different payroll platforms in 46:40 46 minutes, 40 seconds each of the countries and then plugging into a global HRMS system uh global time and attendance system. So what is critical here is the compatibility you 46:49 46 minutes, 49 seconds know in terms of the integration through APIs the data flowing through automatically without having to do manual reconciliation. So that's a sweet 46:57 46 minutes, 57 seconds spot that we have in terms of our uh international business as such. 47:03 47 minutes, 3 seconds So uh that's the competition from the check and from a sales perspective yes we our sales team have been pretty good 47:12 47 minutes, 12 seconds and uh more and and they've been able to show that in terms of the conversion and the expansion of the business. Uh so now we as I told you within the sales team 47:21 47 minutes, 21 seconds we've structured in such a way that know there are specific parts of the team which is concentrating on the international market. So we're kind of creating a center of excellence kind of 47:30 47 minutes, 30 seconds an arrangement. there are specific people who are looking at specific geographies so uh they're more effective they'll be able to relate to it more rather than you know spreading thin so 47:39 47 minutes, 39 seconds that's something which we have done and that's something which is effective we've also tied up with a number of partners both rain makers as well as you 47:47 47 minutes, 47 seconds know technology partners in those specific uh regions that's also a additional channel that we have from a 47:54 47 minutes, 54 seconds sales perspective so that's how and I think the third question was at which level do we conclude 48:00 48 minutes uh deal with that. uh see this is going to be a little high level uh percentage 48:06 48 minutes, 6 seconds that I can give you uh about 50 60% but it it more depends on the 48:14 48 minutes, 14 seconds size of the deal right the smaller size of the deals you know 500 600 less than thousand employees uh kind of an client 48:23 48 minutes, 23 seconds are usually closed at an HR level uh with a larger one especially when we looking at about you know 5,000 plus employees multi-country 48:32 48 minutes, 32 seconds those ones you know we have uh the CEO CFO levels CEO is very you know limited 48:39 48 minutes, 39 seconds but mostly it is the CFO and CHRO that we you know deal with and close uh that that is what we are seeing so if I have 48:46 48 minutes, 46 seconds to give you a ballpark percent somewhere about 30% of our deals will be with the levels of CHRO and CFOs and rarely we 48:55 48 minutes, 55 seconds see CEO coming into the uh you know picture in terms of evaluating but it's more a decision maker from that perspective. 49:04 49 minutes, 4 seconds Sure, that's very helpful. Um, and if you can, you know, in the same breath, uh, the order book that is outstanding for the HRO business as of March 31st, 49:14 49 minutes, 14 seconds uh, how much of that order book is international? 49:18 49 minutes, 18 seconds Uh, okay. As of March 31st, it's about 49:29 49 minutes, 29 seconds it's it's about 48% of my uh you know order book is on the international side. 49:39 49 minutes, 39 seconds Sure. Um and you know just from a volumetric basis we've grown the volume of payrolls processed um at a very 49:48 49 minutes, 48 seconds healthy clip for this year. Um if is there a way you can help us break into uh how much of the how much of this 49:56 49 minutes, 56 seconds growth was new customer led and how much was the same customer adding more employees there 50:03 50 minutes, 3 seconds on the tech and digital side you know uh predominantly the growth would be of new customers uh you know if if you actually 50:12 50 minutes, 12 seconds look at it uh know it's the expansion in terms of our existing clients is is being in the same range as 50:21 50 minutes, 21 seconds the previous years. We've not seen any in fact actually our existing customers have more or less plateaued while there are some positives and negatives in uh 50:29 50 minutes, 29 seconds you know the myths of clients it's kind of more or less plateaued. So pretty much uh 90% of our growth has come from 50:35 50 minutes, 35 seconds new customers that you Mr. you know Trojan correct me if I'm wrong um in the past typically 50 60% of 50:45 50 minutes, 45 seconds your growth would have come from your existing customers and the rest you would have been hunting for new growth uh given that last year everywhere there 50:53 50 minutes, 53 seconds has been downsizing or you know the most of the sectors uh should we is there a is it a fair 51:00 51 minutes statement to say that in the next two years or 3 years or next year uh the same customer growth will kind of augment this volumetric growth for us as the overall company level. 51:13 51 minutes, 13 seconds Okay. Uh see I I can you know I don't want to speculate on two three years but one year is something which we are already constantly keeping a watch on 51:21 51 minutes, 21 seconds because this also would impact our revenues if it goes on the negative side. So we are constantly in discussion with our clients in terms of their 51:30 51 minutes, 30 seconds projection for the year. for FY27 we are not seeing any significant decline from our existing customer base 51:39 51 minutes, 39 seconds employee uh you know headcount so unless you know we going to lose clients I don't see this number of employees 51:48 51 minutes, 48 seconds coming down for uh you know any of the strategic decisions from a client perspective impacting us and that's something which we have uh a clear 51:56 51 minutes, 56 seconds visibility of FY27 because constantly we evaluate what is a threat of AI I like if our clients are implementing AI uh is 52:05 52 minutes, 5 seconds it going to result in downsizing? We have positives and negatives like while some of the clients have grown in the headcount and some of them have come 52:12 52 minutes, 12 seconds down but overall from an aligite techch business perspective our existing uh headcount is more or less uh you know 52:19 52 minutes, 19 seconds similar. So we we we're not anticipating any negative growth but at the same time you know we're not anticipating any major positive growth also for this year 52:27 52 minutes, 27 seconds in terms of employee records. uh as I mentioned our revenue stream is not only from the uh employee records we have 52:36 52 minutes, 36 seconds one-time configurations uh you know yearly activities the new wasteport implementation that is still ongoing for some of some of our customers and 52:44 52 minutes, 44 seconds certain customizations that they come up with beyond the payroll engine as well you know and now you know we're bringing in analytics so that's also a special 52:53 52 minutes, 53 seconds you know scheme that will come up we're looking at a revenue stream that will come from the analytics as well So uh those will be extra or additional 53:02 53 minutes, 2 seconds revenue streams apart from the per employee per month in terms of employee records that we have. Excellent. That's is very detailed. 53:10 53 minutes, 10 seconds Thank you so much. Um uh the other bit was uh you know these new initiatives that you highlighted pulse HR.AI AI 53:18 53 minutes, 18 seconds HRMSB2 um these two specifically if you can help us understand how should we as investors see as outcomes 53:27 53 minutes, 27 seconds um on implementation of these two products. 53:32 53 minutes, 32 seconds So see uh the HRMS version two is basically a integrated console. So today we have our HRMS system which is is 53:41 53 minutes, 41 seconds separate and then you know we have our payroll system which is separate. with this HRMS version two you know it is going to be an integrated solution that 53:49 53 minutes, 49 seconds will come in uh it's so the data movement between both these platforms is going to be smooth so from a customer 53:57 53 minutes, 57 seconds perspective so there's going to be an effort reduction in terms of data reconciliation between these two systems 54:04 54 minutes, 4 seconds you know because it'll be seamless from an allig perspective again this is efficiency that uh will be gained I already you know mentioned we looking at 54:13 54 minutes, 13 seconds about 3 crore of efficiency gains. You know, this will be one of the major contributors that will come in from that perspective. Uh 54:20 54 minutes, 20 seconds pulse HR.AI again is predominantly internally focused from an Aldig tech perspective. So these are AI that comes 54:29 54 minutes, 29 seconds in in terms of how we handle the inputs coming in from our various channels. Uh so that is something which is now going to be technology enabled. So the manual 54:38 54 minutes, 38 seconds interventions will go away. So which means efforts are going to come down. 54:42 54 minutes, 42 seconds It's going to increase my efficiency accurately and as well as it is going to reduce my turnaround time. So that also 54:49 54 minutes, 49 seconds will contribute to the efficiency. So both these put together will directly result in efficiency which means you know we're going to be more attractive 54:57 54 minutes, 57 seconds to our customers. The effort or uh contribution that need is needed from our client HR teams will come down and 55:05 55 minutes, 5 seconds this will improve the performance in terms of accuracy and turnaround times. 55:10 55 minutes, 10 seconds So it's a it's a positive and also it's something which is needed as far as the market demand is concerned. So this is 55:18 55 minutes, 18 seconds overall a positive. It this should help us land more clients will become more attractive to some of the clients who were not able to accommodate us in the past because of separate systems. 55:30 55 minutes, 30 seconds Excellent. Um uh the other can I I have two more questions. Should I fall back in the queue or can I continue? 55:38 55 minutes, 38 seconds Uh we have just a room for one more question. Uh uh we are already behind time. 55:46 55 minutes, 46 seconds All right. So I'll just restrict it to one then. Um uh you know if you can give us some capeex outlook um because you 55:53 55 minutes, 53 seconds know over the last 3 years your depreciation you know has gone up double your depreciation run rate has doubled and over the last 5 years we've seen all 56:02 56 minutes, 2 seconds DG really upgrade itself and you know do a lot of capex around it. uh if you can give us some idea around the capeex 56:10 56 minutes, 10 seconds outlook and the depreciation outlook for next year uh given that we are very conservative on depreciation accounting uh that would probably be helpful. 56:20 56 minutes, 20 seconds Sure sh uh so uh see as you would have seen u we had updated in our previous calls that we are in process of uh 56:27 56 minutes, 27 seconds upgrading our offices um in Chennai and Noa. So for uh Chennai we have identified a facility uh where uh 56:35 56 minutes, 35 seconds currently we are building our new office. So so that will uh of course uh lead to some investments um uh to tune 56:42 56 minutes, 42 seconds of uh 20CR and um uh otherwise we remain pretty much u I would say consistent in 56:49 56 minutes, 49 seconds terms of uh our admin and facility capex is uh typically in the range of 20 to 25 cr for a year. So I don't foresee any 56:59 56 minutes, 59 seconds significant uh changes to the uh depreciation part other than probably the the office which we are building. So that may add a couple of kores for the year. 57:09 57 minutes, 9 seconds So essentially uh depreciation run the full year depreciation next year should not be more than 10 15% higher than current year. 57:20 57 minutes, 20 seconds Yeah. Yeah. 57:21 57 minutes, 21 seconds I mean actually much lower actually sub 10% actually it would be. 57:25 57 minutes, 25 seconds Yes. So currently we are standing at about 58.6%. 57:29 57 minutes, 29 seconds So of course depending upon what finally uh the capex u uh projects are approved and implemented um uh we we may be 57:38 57 minutes, 38 seconds somewhere in that range which you mentioned. 57:43 57 minutes, 43 seconds Got it. Yeah that will be all. Thank you so much. Thanks Rick. 57:49 57 minutes, 49 seconds Thank you very much ladies and gentlemen. That was the last question and with that concludes the question and answer session. I now hand the 57:58 57 minutes, 58 seconds conference over to Mr. Natar Rajan Lakshman for the closing comments. 58:05 58 minutes, 5 seconds Thank you very much uh all of you for the time today. Uh it was a very interactive session and the kind of questions uh gives us an insight of how 58:15 58 minutes, 15 seconds deeply involved you are in all digit. So thank you very much for the support and the interest that you're showing in all 58:22 58 minutes, 22 seconds dig and we'll definitely ensure that we meet up to your expectations and continue to excel. On the back of a 58:30 58 minutes, 30 seconds strong performance in FY26 across all parameters, we looking for a best year ahead in FY27. 58:38 58 minutes, 38 seconds Uh our investments and core business drivers continue to support us. We are very well poised to capitalize on the opportunities and continue to deliver 58:46 58 minutes, 46 seconds superior financial and operational performance. With that, we would like to close the call and look forward to interacting you interacting with you 58:54 58 minutes, 54 seconds again in the future. Thank you very much. 58:57 58 minutes, 57 seconds Thank you members of the management. On behalf of All Digitech Limited, that concludes this conference. Thank you all for joining with us today and you may now disconnect your lines. Thank you.