All E Technologies Limited — Q3 FY26

All E Technologies Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=i4A7TeHwe5c Published: 2 months ago

0:00 Ladies and gentlemen, on behalf of Captify Consulting Investor relations team, I welcome you all to the Q3 and 9 0:08 8 seconds months FI26 post earnings conference call of OI Technologies Limited. Today on the call from the management team, we 0:15 15 seconds have with us Dr. Ajay Mia, managing director, Mr. Rajiv Tiagi, executive director, Miss Ritu Sud, executive 0:22 22 seconds director, Mr. Sep Jan, Chief Financial Officer, and Mr. Sepan, head of cloud and manage services. As a disclaimer, I 0:30 30 seconds would like to inform all of you that this call may contain forward-looking statements which may involve risk and uncertainties. Also, a reminder that 0:38 38 seconds this call is being recorded. I would now request the management to run us through the investor presentation for the period ended December 2025, the growth plan and 0:46 46 seconds vision for the coming year post which we will open the flow for Q&A. Over to the management team. 0:52 52 seconds Thank you very much Vet and thank you everyone who has joined us uh for this call today. 0:58 58 seconds uh we had uploaded this presentation and of course the numbers uh over the weekend starting Friday. Uh we will go 1:06 1 minute, 6 seconds through some of the key slides and then uh you know open up for uh any conversation uh soon thereafter. 1:20 1 minute, 20 seconds Uh so we are going to go over the numbers. Uh we will talk about what's happening in the AI era. uh and things 1:28 1 minute, 28 seconds which I've not changed uh and then the nextures that we have 1:39 1 minute, 39 seconds first the numbers we had a total revenue of 35.7 crores 1:47 1 minute, 47 seconds uh total income from operations was 38.7 which meant an aeta of 26.2% 2% 1:56 1 minute, 56 seconds uh and the reported net profit was 16%. 2:02 2 minutes, 2 seconds But this is after the adjustment that we had to do uh due to government uh changes uh on the on the PF front. So if 2:11 2 minutes, 11 seconds you take that into account then our adjusted net profit and margin were 19.4%. 2:18 2 minutes, 18 seconds Uh which means a total income growth of 4.2%. 2:23 2 minutes, 23 seconds uh total income growth y on y of 1.5 uh of which the repeat and recurring revenue was 88.2 2:32 2 minutes, 32 seconds and we added a total of seven customers uh in this quarter. 2:37 2 minutes, 37 seconds Uh the 9-month figures uh are the total revenue stands at 103 crores. Uh total 2:45 2 minutes, 45 seconds income from operations in the 9 months uh was 112.15 crores. uh the AETA and AETA margins 2:54 2 minutes, 54 seconds have been 26.2 uh% uh the reported net profit was 17.7% 3:04 3 minutes, 4 seconds but again doing the adjustment uh the adjusted net profit has been 18.9%. 3:11 3 minutes, 11 seconds uh that's an income growth y on y of.9% of which the repeat and recurring is 92.1 the total customers added at 27 and 3:20 3 minutes, 20 seconds we have maintained uh the same team size of about 350 people 3:31 3 minutes, 31 seconds if we compare the the ratios uh the quarterly and 9 months y on y uh income 3:39 3 minutes, 39 seconds grew by 1.5 5% ITA growth has been8% uh the ITA margin has been 26.2% 3:49 3 minutes, 49 seconds adjusted net profit growth has been 4.3 and the adjusted net profit margin has 3:56 3 minutes, 56 seconds been 19.4 4 uh looking at the 9 months figures y on y the income growth is.9% 4:04 4 minutes, 4 seconds eida growth 6.5 uh% aida margin has been at 26.2% 4:11 4 minutes, 11 seconds uh adjusted net profit growth 5.8% and adjusted net profit margin has been 18.9%. 4:22 4 minutes, 22 seconds uh these are the numbers in graphs uh and you can you can analyze them uh at 4:29 4 minutes, 29 seconds your leisure. I will skip this. Uh this slide gives us the geographic spread. Uh 4:36 4 minutes, 36 seconds so the Americas which is basically US and Canada have been our uh largest regions in terms of the services revenue. 4:45 4 minutes, 45 seconds uh so India has comprised of uh 27% 4:52 4 minutes, 52 seconds uh and America's has been about twice of that but this is just services uh if we were to add the product margin then 5:00 5 minutes India uh become very very close uh to the to the international market the 5:08 5 minutes, 8 seconds product plus services for India would have been uh in the range of 47 48% uh and their remaining would have been 5:16 5 minutes, 16 seconds international. Uh all the regions Europe, Middle East, Africa uh have had 5:23 5 minutes, 23 seconds slight movements not that much. Uh we have had uh if you look at the top five 5:30 5 minutes, 30 seconds and top 10 customers, they have been broadly within within the range slightly 5:35 5 minutes, 35 seconds more uh you know as compared to uh the previous quarter. You will see that uh 5:44 5 minutes, 44 seconds our the top five has been a slightly lower percentage from uh and and then 5:52 5 minutes, 52 seconds the top 10 has also been uh 28% this time. The new customers added 6:00 6 minutes uh in this quarter has been two for domestic and five uh for intern. 6:10 6 minutes, 10 seconds This is a spread of uh the percentage of business that we had from industries. So professional services continues to be uh 6:19 6 minutes, 19 seconds the biggest percentage 35% revenue from professional services manufacturing 16% uh green energy and EPC 9% uh retail has 6:28 6 minutes, 28 seconds been 9% food and beverages has been seven so have been the financial services and and then the remaining are also given uh in this chart here. 6:39 6 minutes, 39 seconds Uh so broadly these are the numbers these are the percentages uh and uh our growth drivers continue to be what we 6:47 6 minutes, 47 seconds have been mentioning. We have been making some progress in all these fronts. Our comprehens comprehensiveness of offerings has only increased. Uh we 6:56 6 minutes, 56 seconds added the one missing element of security here and we are now also Microsoft certified uh partner for 7:04 7 minutes, 4 seconds security solutions. Uh we have been making some progress in that front. uh we have continued to uh focus more uh to 7:13 7 minutes, 13 seconds see that our geographic spread now uh in the areas that we already have been in we try to strengthen there uh all of us 7:22 7 minutes, 22 seconds knows how Microsoft's business uh has strengthened in the areas of our operations more and more of our solutions and our 7:30 7 minutes, 30 seconds new projects have been led by our own IP and our work on inorganic growth 7:38 7 minutes, 38 seconds uh has been in progress. uh and I think besides all of that we 7:46 7 minutes, 46 seconds mentioned the biggest element that is uh at in the mind of all the people you know you know we running the company and 7:54 7 minutes, 54 seconds you people uh as the investors has been what impact is AI going to bring uh to 8:03 8 minutes, 3 seconds the IT industry uh particularly in India. Uh so as we have been mentioning in our past 8:10 8 minutes, 10 seconds conversations uh our business is different from that of a traditional IT services business. 8:18 8 minutes, 18 seconds If you look at a traditional IT services business from India uh this has been focused very heavily on resource 8:25 8 minutes, 25 seconds augmentation which has comprised 60 to 80% of revenue for these businesses. Uh for companies of our size their reliance 8:33 8 minutes, 33 seconds on large players has been very high. uh because they would just become part of the supply chain. Uh they would have 8:41 8 minutes, 41 seconds limited end customer engagements and the whole thing has been very heavily biased towards the labor arbitrage model. 8:49 8 minutes, 49 seconds Our business model on the other side uh has been different. Uh our our entire business model has been around providing 8:58 8 minutes, 58 seconds what are now known as Microsoft's AI business solutions. They were called business solutions earlier. Now they are called AI business solutions because all 9:06 9 minutes, 6 seconds these product lines have got AI heavily uh embedded into into into them and now 9:14 9 minutes, 14 seconds bringing impact on customers business uh you know and we see that happening fairly regularly and customers using 9:22 9 minutes, 22 seconds these uh new features and functionalities and new power of AI to further their business. Uh so we have 9:30 9 minutes, 30 seconds been working with the AI business solutions. We have been working with the Microsoft's uh fabric which is the data engineering platform. Uh and then of 9:38 9 minutes, 38 seconds course the AI transformation services which bring in the decision layer and the and the intelligence. If we look at 9:45 9 minutes, 45 seconds our at our business resource augumentation comprises of probably less than 2% of our business 9:54 9 minutes, 54 seconds and more than 85% of our business is the digital transformation with ERP and CRM 10:01 10 minutes, 1 second being at the core. uh these things are going to remain and these things become the fundamentals of everything that 10:10 10 minutes, 10 seconds needs to be that that is needed in place for AI to work. Uh our data and AI practice is now approximately 10% and 10:19 10 minutes, 19 seconds this is obviously growing faster than other uh lines of businesses. 10:27 10 minutes, 27 seconds So the three structural advantages that protect uh uh all techch businesses one is the data foundation uh the AI systems 10:36 10 minutes, 36 seconds they require unified enterprise data uh they require governed data quality uh real time integration historical context 10:46 10 minutes, 46 seconds and all these things live in Microsoft Dynamics 365 and Microsoft 365 uh Microsoft fabric and power platform and 10:53 10 minutes, 53 seconds these are areas of our core competence Uh the other area which has been uh of concern uh over during this recent 11:02 11 minutes, 2 seconds period has been uh the scarcity of expertise. Now AI does so many things but it does not 11:10 11 minutes, 10 seconds replace a set of things at least yet. Uh you still need the domain specific 11:17 11 minutes, 17 seconds business process expertise. You require enterprise application architecture decisions. You require user adaption and change management, stakeholder 11:26 11 minutes, 26 seconds navigation and these are areas which you require organizations like ours uh to actually come in and do uh for customers 11:35 11 minutes, 35 seconds and we have multi-year experience doing this. We have the needed certifications that the domain expertise and these are 11:42 11 minutes, 42 seconds irreplaceable value uh which uh AI only helps strengthen further uh and find uh 11:50 11 minutes, 50 seconds uh you know trigger more need of uh rather than replace uh and in this whole AI value it is the 11:58 11 minutes, 58 seconds last mile uh which is uh which is important which brings 80% of the enterprise value. Now as things progress 12:07 12 minutes, 7 seconds uh there are some things which become a commodity. So the LLMs and other uh you 12:14 12 minutes, 14 seconds know AI infra is quickly and rapidly becoming strengthening and becoming a commodity. At the same time you require 12:24 12 minutes, 24 seconds uh you require organizations like us who will help the customers and businesses consume uh this. So we need generic AI 12:34 12 minutes, 34 seconds to be you know leveraged to convert and become enterprise AI. We require data unification, governance framework, 12:41 12 minutes, 41 seconds process integration. We require custom agent developments and change management. So as AI models get commoditized, this last mile work which 12:50 12 minutes, 50 seconds is complex, expertise inensive and resistant to AI automation. This is what brings 80% of the AI value. You know 12:58 12 minutes, 58 seconds it's like you know taking example of something that we probably have known now for a few years. If you look at the 13:04 13 minutes, 4 seconds cloud uh infrastructure be it uh the the Azure or be it AWS everybody has access to it. Everybody has access to the same 13:14 13 minutes, 14 seconds infrastructure but the differentiation is in the expertise that you use for bringing and optimizing these infrastructures for the end customer. 13:23 13 minutes, 23 seconds That is where the value lies. That is what defines the winners and the losers. 13:27 13 minutes, 27 seconds It may also be you know a long time back uh you know when electricity uh was invented uh you know 13:37 13 minutes, 37 seconds it be it was it was a novelty but then over a period of time this became a commodity. Now everybody takes it for granted but then there is still value that has to be driven on top of it. 13:48 13 minutes, 48 seconds Similarly, all of this infrastructure uh you know it was the cloud uh side of the hardware earlier and now it is the AI 13:57 13 minutes, 57 seconds side. These are all becoming such uh integral parts of our lives that they are going to become fundamental infrastructures and value will have to 14:06 14 minutes, 6 seconds be derived on top of them and OLET is geared up to capture the value just because of the uh the business model 14:15 14 minutes, 15 seconds that we have and what we have been uh doing for customers over these years. 14:23 14 minutes, 23 seconds So there are two ways in which we look at our business. So there's a core business that we are working to protect and this business is not the traditional 14:31 14 minutes, 31 seconds ERP CRM only. It is a traditional ERP CRM with the AI uh capabilities embedded there. So now 14:39 14 minutes, 39 seconds you still have the Dynamics 365 implementation projects which are now AI enhanced with co-pilots and agents. You 14:46 14 minutes, 46 seconds have the Microsoft 365 modernization uh which now go with co-pilot deployments and adoption. And you still have these support and manage services which 14:55 14 minutes, 55 seconds require AI optimization uh and monitoring. But then with that you also have the you know the expansion in the 15:02 15 minutes, 2 seconds business comes from the AI services and these AI services come in different uh you know in in different forms. uh you 15:11 15 minutes, 11 seconds have the data platform uh engineering where you require uh the fabric and the one lake and the lake houses uh to bring 15:19 15 minutes, 19 seconds data from various sources and get them ready for being utilized and strengthening the AI capabilities of organizations. Now this is going to be 15:28 15 minutes, 28 seconds there almost perpetually. Uh you have this whole work coming in for AI agent development. Now earlier people used to 15:36 15 minutes, 36 seconds work on doing custom software development but now you have this AI agent development and some of these are now customdeveloped agents uh and of 15:45 15 minutes, 45 seconds course you have enhancements that are going to happen on co-pilot studio uh and other uh you know agents and AI 15:52 15 minutes, 52 seconds tools uh which come in and then the the value is going to be in the decision layer and this decision layer requires 16:00 16 minutes domain expertise. So with Olettech we are not an IT services company. We are a company which is providing business 16:09 16 minutes, 9 seconds solutions. So we understand the customer's domain. We understand what processes they they they require uh and how do they optimize those processes. So 16:17 16 minutes, 17 seconds knowing the business domain enables us to work on this decision layer uh which will then result into uh an action uh by 16:27 16 minutes, 27 seconds some of these agents and that is where we are and this is going to be the expansion to the business which we will 16:34 16 minutes, 34 seconds see happening in the uh next couple of years. 16:39 16 minutes, 39 seconds uh if the traditional ERP project for us was somewhere in the range of 50 to 250K uh with 20 30% margins these AI 16:48 16 minutes, 48 seconds enhancements are going to bring similar revenues in addition on top of it. If you look at the new stock, new new stack 16:56 16 minutes, 56 seconds uh the ERP and CRM now form the base of that stack and on top of it you have got all the other layers the layers which 17:04 17 minutes, 4 seconds are coming with with data engineering layers which are coming uh with you know all the various agentic uh orchestration 17:12 17 minutes, 12 seconds uh and then the AI applications and that actually brings uh an additional revenue opportunity for us uh over the next uh 1 to three years. 17:24 17 minutes, 24 seconds So the reason that uh we are so confident of winning uh in this era is we have a protected core. Uh we don't do 17:32 17 minutes, 32 seconds any resource augmentation. We are expertised driven and not labor arbitrage. Uh Microsoft platform itself is growing quite rapidly. Uh in fact 17:41 17 minutes, 41 seconds Microsoft had internally reported that the growth they are seeing on the ERP side has been higher than they have seen ever before. 17:49 17 minutes, 49 seconds uh and AI only makes the ERP and CRM systems more critical. It doesn't replace them because it needs those ERP 17:56 17 minutes, 56 seconds and CRM systems to provide the basic data that AI works on. 18:02 18 minutes, 2 seconds And then we are capturing the upside. we have the new higher margin service lines uh 25 to 30% premium on AI projects 18:12 18 minutes, 12 seconds domain knowledge that we have and then the sustainable edge comes because of the 25 plus years of Microsoft expertise 18:20 18 minutes, 20 seconds uh that we have and the deep domain knowledge that we have which prepares us uh for the coming and changing times. 18:29 18 minutes, 29 seconds So for us this is not a threat it is an opportunity an opportunity that we are going to leverage over the next 1 to three years. 18:39 18 minutes, 39 seconds The rest of the slides I guess uh you have seen before in our earlier presentations. We have not changed much 18:45 18 minutes, 45 seconds there. Uh we still have these broad uh lines of uh solutions and services. uh 18:53 18 minutes, 53 seconds we leverage the full stack of Microsoft uh and all of these products are now AI 19:00 19 minutes capable uh so they bring uh these new found capabilities to customers business and we help them to consume these uh the 19:08 19 minutes, 8 seconds board of directors is the same uh the lead management is the same uh and we have uh 19:17 19 minutes, 17 seconds these statements that you might have looked at So all of this is standard uh stuff. So 19:27 19 minutes, 27 seconds I'll stop presenting uh and just open for conversation in case 19:35 19 minutes, 35 seconds anybody wants to discuss something. 19:39 19 minutes, 39 seconds Thank you sir. Uh thank you sir for the detailed presentation. All those who wish to ask a question may use the option of raise hand. In case you are unable to raise hand just drop a message 19:47 19 minutes, 47 seconds on the chat window and we'll invite you to ask a question. Sir, we'll take the first question from Sesh Mumar. Sesh, you can go ahead please. 19:54 19 minutes, 54 seconds Yeah. Hi, sir. Thanks for the opportunity. Hello, sir. Can you hear me? 20:02 20 minutes, 2 seconds Yes, you are audible. 20:03 20 minutes, 3 seconds When we have couple of hands raised, you want to start? 20:07 20 minutes, 7 seconds Yes sir. Sir like we are Microsoft inner circle member placing us in like almost top 1% partners globally and we are specializ. 20:15 20 minutes, 15 seconds You want to go first? 20:17 20 minutes, 17 seconds Yes sir. Can you hear me sir? I think sir uh you are not able to hear us. Hello sir. 20:25 20 minutes, 25 seconds Hello AJ sir we are audible to you. 20:28 20 minutes, 28 seconds Just a minute Sesh I think there's a problem at the end of Dr. Can you hear me? 20:33 20 minutes, 33 seconds Sir your voice is not audible but can you am I audible? 20:45 20 minutes, 45 seconds Can you hear us sir? 1 2 3 4 test. 20:48 20 minutes, 48 seconds No, I don't think so. You can The recording has stopped for some reason. Is one second. The recording recording has paused for some reason. 20:57 20 minutes, 57 seconds Sir, I have paused it. Are you able to hear? I am able to hear. 21:01 21 minutes, 1 second Okay. Uh we'll get the recording started because you could something went wrong in between. 21:05 21 minutes, 5 seconds Yeah. Just hold on one second. I'll get the recording started. We'll take the first question from Sesh Kumar after that. This meeting is being recorded. 21:13 21 minutes, 13 seconds Hello sir. Can you Yes s go ahead. Yes s please go ahead. 21:16 21 minutes, 16 seconds Yes sir. We are Microsoft inner circle member placing us in like almost top 1% of partners globally and we are specialized focus as a full stock 21:24 21 minutes, 24 seconds Microsoft player only. However like looking at the Microsoft numbers Microsoft India grew almost at 28% this 21:32 21 minutes, 32 seconds year and globally dynamic 365 revenue grew like 23% and Microsoft cloud is growing 23%. and Microsoft uh itself 21:40 21 minutes, 40 seconds growing like 20% in all the uh countries like Europe, Middle East, Africa where we are working and being our revenue base is low and we are only focused 21:49 21 minutes, 49 seconds towards Microsoft product and and we are already including a AI agents in all our uh modules like uh like these things 21:58 21 minutes, 58 seconds should grow revenue at least double digit like in contrast our income is like kind of flat. Could you please comment on this? 22:07 22 minutes, 7 seconds No, it's a valid question and uh uh uh you know that is what we expect uh to happen and we know that it will happen. 22:15 22 minutes, 15 seconds uh you know first of all we all we have to recognize that the Microsoft revenue 22:21 22 minutes, 21 seconds does not always uh you know directly uh you know reflect in how a partner number 22:28 22 minutes, 28 seconds grows but very clearly uh we have had uh a rather uh you know modest you know 22:37 22 minutes, 37 seconds this last couple of quarters uh but then uh what we what we take from the Microsoft numbers say that we still are 22:45 22 minutes, 45 seconds in the right space. We have we have picked up the right platform uh for multiple reasons whether those reasons 22:52 22 minutes, 52 seconds are uh you know earlier on we had several macroeconomic situations impacting uh you know the businesses uh 23:01 23 minutes, 1 second but you know these are things that we we hope will get addressed now uh in the in this coming year and we should see that 23:09 23 minutes, 9 seconds changing but your expectation uh is not uh incorrect at all. 23:16 23 minutes, 16 seconds Okay. So like uh uh okay sir my next question like we are like since 2 year we are trying for some acquisition like 23:23 23 minutes, 23 seconds delaying acquisition look like it's good decision compared to a disruption and global sentiment now I think like we got 23:30 23 minutes, 30 seconds some clear direction on a adoption like and now like many botic firms are currently undervalued due to global sentiment does management intend to 23:38 23 minutes, 38 seconds capitalize on this good companies at good valuation in the cousin fiscal year so I I think 23:48 23 minutes, 48 seconds It's a little bit early to to comment on this. We are we are in the middle of some conversations. Uh but you know the 23:56 23 minutes, 56 seconds disruption uh in the whole valuation system has become such that uh some of those deals might just get stuck uh 24:04 24 minutes, 4 seconds because of the initial expectations uh that the uh you know uh companies on 24:12 24 minutes, 12 seconds the other side had and what the situation looks today. But this is this is something that we keep working on and 24:19 24 minutes, 19 seconds uh it is uh as I said we are we are right in the middle of some of it. Uh whether or not uh you know these deals 24:27 24 minutes, 27 seconds get impacted uh by the change in the market situation and valuations I think we will know uh in in some time. 24:37 24 minutes, 37 seconds Okay sir my last question is like uh we we have all the prerequisites to move to main board. I think earlier we planned to move to main board now it's already 3 24:45 24 minutes, 45 seconds years we got all the pre prerequisite to move to main main board like when we can expect to move to main board sir you are right we we have everything that 24:54 24 minutes, 54 seconds is needed uh from a statutory point of view and eligibility point of view I think uh we just uh u will go by uh 25:04 25 minutes, 4 seconds recommendations that are made by uh our our management team and the board uh and 25:11 25 minutes, 11 seconds also maybe seek external opinion. Uh there are at times that you have you have some priorities which might uh take 25:19 25 minutes, 19 seconds uh uh which might you know come ahead of some of the other things but uh it certainly is an area that we are closely 25:28 25 minutes, 28 seconds watching and I think we will be able to take a call on it uh sometime during the year. 25:34 25 minutes, 34 seconds Okay sir my my last question like next year can we expect double digit growth next year for all year? 25:41 25 minutes, 41 seconds Well, we would want it to be that way, but whether it'll happen or not happen, I think uh uh I can say anything or 25:48 25 minutes, 48 seconds anybody else can say anything. Uh but you know, we do have uh you know, the 25:55 25 minutes, 55 seconds elements are in place and uh we we have no reason to be pessimistic uh on this front. 26:02 26 minutes, 2 seconds Okay sir. Thank you. Thank you. 26:07 26 minutes, 7 seconds Uh we'll take the next question from Pratik Shetty. Pratik go ahead please. Hi, am I audible? Yes, Pratik. 26:14 26 minutes, 14 seconds Uh, thanks for taking my question. Uh, sir, can you give us a sense of what you're seeing on the ground? How's business like right now this quarter as 26:22 26 minutes, 22 seconds well since we are halfway into the quarter and what is the pipeline looking like? Like what can we expect from the quarter? 26:29 26 minutes, 29 seconds uh you see we have had a fairly interesting uh last uh I would say two 26:36 26 minutes, 36 seconds months or so you know post December uh and we have we have done some uh 26:44 26 minutes, 44 seconds really nice business closures uh not every business that gets closed uh 26:52 26 minutes, 52 seconds gets invoiced in the same quarter. So that is one aspect of it and you know some of the uh long duration projects will bring you revenue over a period of time rather than in the same quarter. 27:03 27 minutes, 3 seconds But then we have been able to uh close some uh I would say uh sizable accounts 27:12 27 minutes, 12 seconds uh with some important customers. So overall if you see within within the organization internally we are fairly uh upbeat with the traction that we are we 27:22 27 minutes, 22 seconds are building and we are seeing is it possible to give like a guidance for the quarter? Okay. uh you see we are already in the as you said we are we are 27:30 27 minutes, 30 seconds you know at at the at the mid of the quarter and I think it is not uh uh 27:38 27 minutes, 38 seconds I won't say appropriate you know our as you know as you you know if you see our business it's not about uh you know a number of people multiplied by a rate so 27:47 27 minutes, 47 seconds you make that uh easy competition it doesn't work that way so a lot of our projects are milestone based and 27:54 27 minutes, 54 seconds sometimes a milestone happening a week here or a week there will decide whether the invoicing is happening here or not 28:01 28 minutes, 1 second happening here. Uh but uh you know we do sense that we should have a healthy quarter. 28:09 28 minutes, 9 seconds Okay. And continuing with the question asked by the previous participant is there a rational to why Microsoft is going 20% plus but we being the number 28:18 28 minutes, 18 seconds one partner or for us they being a number one customer still we are kind of flattish since one year one and a half years. 28:25 28 minutes, 25 seconds Yeah. So uh you see for organizations like Microsoft first of all uh there are various different areas uh in which they 28:34 28 minutes, 34 seconds keep growing and you know their practically entire revenue is now cloud revenue which just keeps building up on top of what they have done in the past. 28:42 28 minutes, 42 seconds Uh it's also easy for them sometimes to you know you know change the rates a little bit or tweak the margins a little bit. So you know they have more levers 28:51 28 minutes, 51 seconds at them but that does not necessarily uh you know convey uh you know what's 28:58 28 minutes, 58 seconds happening in the in the partner ecosystem. Uh we are happy that we are uh working with Microsoft because it's 29:06 29 minutes, 6 seconds it's really important that uh the ecosystem in which you are working is 29:12 29 minutes, 12 seconds healthy. uh so those numbers and uh will certainly start reflecting in in the 29:19 29 minutes, 19 seconds partner businesses as well. Uh we have had it uh we this has been happening in the past. Uh there are periods when it 29:26 29 minutes, 26 seconds doesn't happen but then uh we have no hesitation in saying that we'll see that happening. 29:34 29 minutes, 34 seconds If I can just add that Pratik what also happens is that Microsoft has a very very broad product portfolio. So the 29:43 29 minutes, 43 seconds product mix which is gaining ground in one quarter is it aligning exactly with the product mix the sales that we are doing may not necessarily be the case. 29:53 29 minutes, 53 seconds So for them you know at times the product that might be the star sellers which may be like they may be doing very well in security but for us that is a 30:03 30 minutes, 3 seconds area which we are still developing and may not be the you know so it it will not always be a direct correlation 30:10 30 minutes, 10 seconds because even in business applications there are multiple suite of applications and for 6 months plus we have a service 30:19 30 minutes, 19 seconds component Microsoft doesn't have a service component. So if it is 6 month project we always have a lag by the time we'll realize the entire value product 30:29 30 minutes, 29 seconds sales obviously line share go to Microsoft we only get the margins there. 30:36 30 minutes, 36 seconds So logically with a lag uh that growth should show up on it should and it would it should and it would and as I said it is only at times 30:44 30 minutes, 44 seconds a bit of a product mix which may matter because if you see in their quarter two quarter thing also so our line share 30:53 30 minutes, 53 seconds will be in business application and there in business application which product may be in whether we have also 31:00 31 minutes like the CRM they might take a more revenue growth in CRM because of certain 31:07 31 minutes, 7 seconds large closures either in US, India or anywhere else and we might not have done the CRM 31:15 31 minutes, 15 seconds closures in those 6 months but logically the whole ship is moving so yes there will be a you know derive momentum that 31:24 31 minutes, 24 seconds will definitely be there it can only be the lag of few quarters here and there got it uh that's helpful and lastly on 31:32 31 minutes, 32 seconds the inorganic growth front uh so that uh like what is the is there a timeline that the management has decided on as in 31:40 31 minutes, 40 seconds it's been 3 years already and a large portion of our balance sheet like 70 80% uh is stuck in cash which is not kind of 31:49 31 minutes, 49 seconds generating the kind of returns that your whole business would. So at what point do we think that maybe the cash is better utilized at the hand of the 31:57 31 minutes, 57 seconds investor uh if at all we are not finding uh the right acquisition companies 32:05 32 minutes, 5 seconds uh so I don't think uh that's going to happen uh you know we will find because we we we work on it uh quite intensely 32:14 32 minutes, 14 seconds uh but even if it so happens that we don't find it there are in in this changing AI 32:22 32 minutes, 22 seconds era. There are areas of investment that we have identified because we need to prep the company for the next 10 years. 32:29 32 minutes, 29 seconds Uh and you know we would need to be armed with the needed amount of uh 32:35 32 minutes, 35 seconds capital for that. U you know taking money out is a is a very simple job. Uh 32:42 32 minutes, 42 seconds it just requires a board decision and then you spend that money and consume that money. that can be done but then that wouldn't yield the 32:51 32 minutes, 51 seconds same kind of returns as one would expect uh you know uh by growing the business itself. So that is where we are focused 32:59 32 minutes, 59 seconds and uh we will either be spending this money in in organic uh growth uh and or 33:07 33 minutes, 7 seconds uh building additional lines of businesses. 33:10 33 minutes, 10 seconds Is there a timeline that the management has committed to internally or can you share that is is it possible? Uh well it's some of these things are not a 33:18 33 minutes, 18 seconds matter of commitment because if you're working on an acquisition you can never say till the ink hits the paper that it is happening or not happening. True. 33:25 33 minutes, 25 seconds And we also don't want to do any uh you know any any commitments which then uh just for this for meeting that 33:33 33 minutes, 33 seconds commitment you take a decision which is not uh then a sensible decision. Uh what we can say is that we currently are in 33:41 33 minutes, 41 seconds some serious conversations. uh but you know whether uh you know it happens or it does not happen and you know as 33:48 33 minutes, 48 seconds things are moving whether you know doing that become sensible or not is also a question. Uh so these things always stay 33:58 33 minutes, 58 seconds uh top of our mind. Uh it is the intent uh of the board and the executive team 34:05 34 minutes, 5 seconds uh to utilize this money uh in growing the business uh rather than just keeping it in the bank. 34:13 34 minutes, 13 seconds Got it sir. Thank you. Uh those are all the questions from my side. Good luck to the team. Thank you Pratik. Pratik. 34:21 34 minutes, 21 seconds We'll take the next question from Darw. Yeah. Hi sir. Am I audible? Yes D. Yes. 34:29 34 minutes, 29 seconds Yeah. Hi sir. Thanks for taking my question. So few questions from my end. 34:32 34 minutes, 32 seconds So firstly uh Microsoft Microsoft uh Azure grew by 39% year on year and uh they guided for 37 to 38% for next 34:41 34 minutes, 41 seconds quarter uh while if you see Dynamics 365 it grew by 19% year on year and it is expected to remain in the mid to high ts 34:49 34 minutes, 49 seconds of around uh 15%. So given your view that H1B has no material impact on all 34:57 34 minutes, 57 seconds tech uh shouldn't uh we be and we should not be viewed as a regular IT service 35:03 35 minutes, 3 seconds player. So why has our growth taken a hit for 9 months FI25 FI26 and how soon 35:10 35 minutes, 10 seconds can we revert back to the 25 to 30% growth run rate? 35:15 35 minutes, 15 seconds Sure. So D what happens is you know sometimes growth comes in spurts. uh you grow for some time and then you know it 35:22 35 minutes, 22 seconds takes some time for you to uh kind of adjust to it and then uh put new seeds which start growing and bringing 35:30 35 minutes, 30 seconds outcomes. Uh so you know you you get into some of these phases and one could 35:37 35 minutes, 37 seconds uh say that that probably has been uh the phase for us uh over this year. uh as I have mentioned uh a couple of times 35:46 35 minutes, 46 seconds earlier today uh that the Microsoft platform and the Microsoft ecosystem is growing is very heartening to know 35:53 35 minutes, 53 seconds because it it kind of just reemphasizes the fact that we are working in the right space and with the right set of products. So uh because we keep working 36:02 36 minutes, 2 seconds at this uh we know that this will change and uh you know that we are a leading partner is not something that we say it 36:10 36 minutes, 10 seconds is what Microsoft says. So Microsoft's uh growth uh is is bound uh to start 36:18 36 minutes, 18 seconds also impacting uh our own growth. Uh it happened in the past couple of years. It did not happen so much this year. Uh but 36:25 36 minutes, 25 seconds you know in the coming year, two years, three years, we definitely will see those things happening. 36:31 36 minutes, 31 seconds Right? So we can expect a 25 to 30% growth on debt like in medium term. 36:35 36 minutes, 35 seconds Well, I don't know whether you know putting a number to it is the right thing to do. There is so much of disruption which is happening anyways uh 36:44 36 minutes, 44 seconds in the in the market today. Uh it could be 25%, it could be 20%, but you know we expect to see uh you know a decent growth uh in the in the coming years. 36:55 36 minutes, 55 seconds Sure. Got it. Next I just wanted to know could you share the current attrition rate as on date? Uh also for better comparability what is the attrition rate 37:04 37 minutes, 4 seconds excluding the employees who live during the uh training period that is year one. 37:10 37 minutes, 10 seconds Uh so at Ru you want to address that. 37:16 37 minutes, 16 seconds Yeah. So our attrition rate is uh much below the standards we maintain somewhere in the range of about 10 12%. 37:26 37 minutes, 26 seconds But then some of these attritions are also people who we want uh to let go rather than people deciding to leave. 37:35 37 minutes, 35 seconds Right? 37:37 37 minutes, 37 seconds And in terms of the other part of the question where you mentioned about uh the 37:46 37 minutes, 46 seconds you mentioned about the people who started with us uh in the first year or so. So we have we've been stable on 37:53 37 minutes, 53 seconds that. We have not seen any attrition as such um for the initial year and a half two years of the people who we take from the campus. 38:03 38 minutes, 3 seconds Right. So right now the addition rate is 10 12% and what what was it like before a year ago? Similar it has not changed. 38:12 38 minutes, 12 seconds So if you if you in the in the past we had uh reported that if you if you 38:19 38 minutes, 19 seconds exclude the people uh who left within one year of joining uh which included you know be them be these the people who 38:28 38 minutes, 28 seconds came in as trainee or be these the people who were lateral hires. If you exclude the one year uh under one year then our uh attrition was 6%. 38:39 38 minutes, 39 seconds uh you know uh as I had mentioned I think uh a couple of uh calls back right so right now it should be in the 38:47 38 minutes, 47 seconds similar range excluding the one year yeah attrition has not been a matter of uh nothing has changed much on that 38:55 38 minutes, 55 seconds front right got it uh next I just wanted to know at a broad level uh could you quantify the margin differential between 39:03 39 minutes, 3 seconds the India and US businesses like without getting into exact segment disclosures an approximate range would be very helpful sir. 39:11 39 minutes, 11 seconds Sure. So our business has two components. There's a product component and there is a services component. Uh 39:18 39 minutes, 18 seconds the product component uh margins are roughly the same. Uh although sometimes 39:26 39 minutes, 26 seconds uh in some geographies uh there is uh uh stiffer competition wherein 39:34 39 minutes, 34 seconds uh you know you have to give some discounts but broadly speaking the margin on the product sides are similar across geographies 39:43 39 minutes, 43 seconds uh because Microsoft has roughly the same price points and they have roughly the same uh partner margins. On the 39:50 39 minutes, 50 seconds services side though uh margins are better uh internationally uh by by a 39:57 39 minutes, 57 seconds factor uh you know which could be you know 50 to 75%. 40:05 40 minutes, 5 seconds Uh for the services side yes and for the product side can you quantify it? 40:10 40 minutes, 10 seconds That's what I said for the product side the margins are similar. 40:14 40 minutes, 14 seconds Similar okay got it. Uh lastly sir uh since you mentioned all tech is a professionally run company uh do you 40:22 40 minutes, 22 seconds have any plans to introduce a new esop program to attract and retain talent uh especially at med m mid and senior 40:29 40 minutes, 29 seconds levels if yes what broad structure are you validating in terms of pool size eligibility and westing talents 40:37 40 minutes, 37 seconds we don't have anything uh for that on uh the um on on the I would say uh plan at 40:46 40 minutes, 46 seconds this point in time. We don't uh rule out any of these things but we are uh we 40:52 40 minutes, 52 seconds will be uh the the last tranch of our uh previous esop 40:59 40 minutes, 59 seconds uh will be uh exercised now. Uh 41:05 41 minutes, 5 seconds so so that scheme is still not you know ended. Uh so that will happen now and whether we have to do something 41:13 41 minutes, 13 seconds thereafter uh is something that will be uh put up in due course uh with the uh management and the board. 41:21 41 minutes, 21 seconds Sure sir. Sure. Thanks. Thanks a lot for answering all my questions and all the best. Thank you. 41:26 41 minutes, 26 seconds Thanks D. So we'll take the next question from Ganesh Kumar Sankar. Ganesh you can go ahead please. 41:37 41 minutes, 37 seconds Ganesh you there sir we'll move on to Shashanki Shashank you can go ahead please 41:46 41 minutes, 46 seconds yeah hello sir hi uh sir do you still maintain your long-term target of reaching thousand cr 41:55 41 minutes, 55 seconds of course I mean the only thing you did not mention is long-term is what so you know 42:01 42 minutes, 1 second that's what I wanted to know from him you see things will things will you nothing nothing you know keeps moving in 42:09 42 minutes, 9 seconds the same uh at the same rate and in the same direction perpetually and it'll be just too naive of anybody to think that 42:17 42 minutes, 17 seconds something will maintain the same slope every time if it was uh so predictable and it was so simple then you know everybody would have been doing it. 42:26 42 minutes, 26 seconds uh but this is more a matter of what aspiration you have and it's also a matter of whether you are doing uh and 42:35 42 minutes, 35 seconds working towards it. It does not necessarily guarantee that you will succeed at the same pace and you will always succeed uh 42:44 42 minutes, 44 seconds you know uh at at every at every turn of the events but that we will keep working on it. Uh there is absolutely no 42:51 42 minutes, 51 seconds question on it. We might have had a little subdued last couple of quarters but that's okay. We understand it. Uh 42:58 42 minutes, 58 seconds but it doesn't you know it doesn't in any manner uh dilute uh the overall aspiration that we have as an organization. 43:08 43 minutes, 8 seconds Okay. Sir uh I mean right now the company billing structure is what is it manh hour billing based or you are 43:17 43 minutes, 17 seconds gradually shifting towards outcome based? 43:21 43 minutes, 21 seconds our predominant business model has always been outcome based. I well I would say you know when you talk of 43:27 43 minutes, 27 seconds outcome based uh I don't know whether you know everybody understands it a 43:34 43 minutes, 34 seconds little bit differently an outcome based could be a project which is milestone based and an outcome based would also be 43:42 43 minutes, 42 seconds the outcome which a customer gets from something okay so the IT industry has not yet 43:49 43 minutes, 49 seconds matured uh to a point where it will so we are mature you know right From our initial days we have been doing projects 43:57 43 minutes, 57 seconds and billing milestone based but whether it is outcome based I would say uh that well if you look at our overall billing 44:05 44 minutes, 5 seconds uh some of our products are SAS products uh be be these the Microsoft products or our own IP so customer pays us when they 44:13 44 minutes, 13 seconds are using the product whether we measure the outcome that the customer got from the product uh is not something that 44:21 44 minutes, 21 seconds happens in most cases today but we expect to be able to get to that point in in the period of next two to three years time. 44:31 44 minutes, 31 seconds Okay sir. Sir uh my last question is that uh I mean last uh this year has kind of a standill for us. So next year 44:39 44 minutes, 39 seconds can we think that we will be back to you know back to the game and right and we will follow our directionally growth of 20 to 25%. 44:49 44 minutes, 49 seconds If we can get clarity, see first of all we are already in the game. So it's not a matter of being back to the game. We are already in the game. 44:55 44 minutes, 55 seconds But you know in the game you know you don't uh you know nobody scores a century every time that he goes out to 45:03 45 minutes, 3 seconds bat. So sometimes you score a century and sometimes you don't. Uh sometimes you are out very cheaply. Uh but that 45:11 45 minutes, 11 seconds does not mean that you stop playing. But when you say 20 25% it's like saying that well will Virat Kohli hit a century every time he goes out in the field. 45:20 45 minutes, 20 seconds Well not necessarily. But does he will he stop playing? Well not necessarily. 45:25 45 minutes, 25 seconds Uh but in our case because it's an organization and not an individual. The organization will go on. Uh we will keep 45:32 45 minutes, 32 seconds working and we are working in the areas which have been our core. uh we might have had a little modest year uh this 45:41 45 minutes, 41 seconds year but that doesn't stop us uh from learning and doing more for the next years. 45:48 45 minutes, 48 seconds So actually uh like this disruption has recently gained a lot of traction this AI things. So that's why your response 45:56 45 minutes, 56 seconds is quite critical in this regard. So that's why I asked no absolutely did I maybe I missed your 46:04 46 minutes, 4 seconds last question. What is the point that you are making sir? I was saying that this AI thing is getting a lot of tractions in January 46:12 46 minutes, 12 seconds and Feb. So now your commentary is quite critical that whether you are you know confident enough that the company will continue growing the similar manner. 46:21 46 minutes, 21 seconds Exactly. You see that is what one section of my presentation was dedicated 46:26 46 minutes, 26 seconds to that. So if you look at AI, AI is basically 46:34 46 minutes, 34 seconds helping organizations to leverage the data that they have 46:42 46 minutes, 42 seconds to do things in an automated manner using the agentic frameworks and by 46:49 46 minutes, 49 seconds using the various AI tools. But AI feeds on data. This data comes from systems like ERP and CRM and other applications. 47:00 47 minutes Now what we have been doing so far is helping organizations bring these systems which are ERP and CRM in place 47:09 47 minutes, 9 seconds which enable them to start uh gathering this data and now we are working to help 47:16 47 minutes, 16 seconds them use this data to start building their AI systems. So this is very much aligned with what we have always been doing. 47:26 47 minutes, 26 seconds Yeah. So you maintain your you know status that the company will continue growing. There is no such problem. 47:34 47 minutes, 34 seconds Of course. Thank you sir. 47:38 47 minutes, 38 seconds Thanks Sashan. So we'll take the next question from Kakshi B. A convert please. 47:46 47 minutes, 46 seconds Uh good day everyone. Um thanks for giving me the opportunity. Um sir I have like just um just a couple of questions. 47:56 47 minutes, 56 seconds Uh first one is now in this um time and um this thing of AI now even even in my 48:03 48 minutes, 3 seconds company we are like transitioning into more sort of like uh prompting and uh stakeholder management and all that 48:10 48 minutes, 10 seconds instead of coding because coding is now mostly becoming a commodity. So um so how do we see our own people 48:18 48 minutes, 18 seconds transitioning going forward like this 350 people team that we have? How do you see uh we transitioning going forward 48:26 48 minutes, 26 seconds from the software development to something uh more valuable? 48:32 48 minutes, 32 seconds So, so I I do not know for for how much time uh you have uh observed uh uh us uh 48:40 48 minutes, 40 seconds or or studied us but we are not a software development company. If you look at this 300 plus people that we 48:48 48 minutes, 48 seconds have, uh only about 40% of this total workforce would be what you may call technical 48:56 48 minutes, 56 seconds people and the remaining have always been domain people who understand finance and who understand uh supply 49:03 49 minutes, 3 seconds chain management or manufacturing or distribution and then these are the people who have been in the past working in successfully 49:12 49 minutes, 12 seconds deploying ERP and CRM projects for our customers the work which the technical people have been doing in the past that 49:19 49 minutes, 19 seconds work has been changing. Uh that work is getting large parts of it are getting automated even by us. Uh so our people 49:28 49 minutes, 28 seconds are spending less and less time in coding because code now gets generated largely uh by the large language models 49:35 49 minutes, 35 seconds or c-ilots and then they spend time uh in doing other things like integrations and in in other things like translating 49:43 49 minutes, 43 seconds a customer's requirements uh and seeing that how do we uh best and in the most efficient manner uh get their systems uh 49:52 49 minutes, 52 seconds up and running. So uh the changes that you see happening because of AI in the world uh we are uh a customer zero for 50:00 50 minutes many of these uh and we we we use these ourselves. So that brings us productivity gains. 50:08 50 minutes, 8 seconds Perfect. Thank you sir. Uh this second question by the way you would have also seen that in the you would have also seen that in the past several quarters we were able 50:17 50 minutes, 17 seconds to increase the revenue without increasing our headcount. 50:21 50 minutes, 21 seconds Yeah. Perfect. that that that might be because of Yeah, absolutely. 50:27 50 minutes, 27 seconds Okay, perfect. Thank you. Uh the second question is um we the the the new customer addition numbers that we have 50:36 50 minutes, 36 seconds uh when do we see the uptick coming there because I think last time we said that because of tariffs and the other uncertainties many of our deals were not closing or they getting they were getting delayed. 50:47 50 minutes, 47 seconds So the number that we used to have previously like the um the high number of the new customer additions quarter by 50:55 50 minutes, 55 seconds quarter now how do you see that uh coming in after the tariff uh trade deal and everything is done now? 51:03 51 minutes, 3 seconds Well most certainly in terms of Yeah. Yeah. 51:05 51 minutes, 5 seconds Yeah. So I think some of these things are uh you know a little bit more tricky uh than than than just this 51:14 51 minutes, 14 seconds because when we talk in terms of uh the new customer additions uh you know sometime we are also looking at making a 51:22 51 minutes, 22 seconds shift to say that what is the minimum size of a customer that we should uh acquire and sometimes when something is 51:31 51 minutes, 31 seconds you know smaller than a certain size we just uh you know let pass. Uh so we are 51:37 51 minutes, 37 seconds as an organization we are also gradually moving up uh the chain. Uh we are trying to acquire customers which are uh you 51:47 51 minutes, 47 seconds know larger in size. So the success will not always and necessarily reflect only 51:54 51 minutes, 54 seconds in the count that we give. We typically report this count because this count uh is a reflection of the velocity with 52:03 52 minutes, 3 seconds which operations are moving. Uh it's a it's an important factor because it gives uh the the it's a reflection of 52:11 52 minutes, 11 seconds the energy that goes uh in the sales and the marketing teams. Uh so we do look at it but they are not necessarily a high 52:19 52 minutes, 19 seconds count here does not necessarily uh mean uh that uh it will uh always be a good 52:27 52 minutes, 27 seconds thing. Sometime we may want a lesser number of larger customers uh than a large number of very small customers. 52:35 52 minutes, 35 seconds Perfect. Thank you sir. Um and the last question is now um in in our um AI 52:42 52 minutes, 42 seconds presentation that you gave um we said that the margins could be higher due to AI but um do we see the revenue per unit 52:51 52 minutes, 51 seconds of work going down due to the expectation of AI tools doing the heavy lifting and if that is so do we see it'll get compensated due to much more 53:00 53 minutes work coming in um like both ways yeah so things will change so things will change there are things that we were 53:08 53 minutes, 8 seconds doing uh you know manually earlier which now gets done automatically. So clearly uh you know this you don't get the same 53:17 53 minutes, 17 seconds revenue from there but then there are new things to be done. So those new things uh you know not only replace what 53:25 53 minutes, 25 seconds was uh you know being done earlier and is no longer needed but they also open up new opportunities and maybe Rajiv you 53:32 53 minutes, 32 seconds want to add anything there but what you are thinking is the right direction though it will not happen just 53:40 53 minutes, 40 seconds in one quarter or two quarters but going forward the overall cost of an ERP or 53:47 53 minutes, 47 seconds CRM implementation will go which on the other hand in a country like India can expand the market in a 53:54 53 minutes, 54 seconds much larger multiple because it's a very price sensitive market and there are lot of uh you know small and medium 54:03 54 minutes, 3 seconds enterprises who have still not gone for a standard ERP CRM implementation so there should be an uptick in terms of 54:10 54 minutes, 10 seconds the number of customers that you'll be able to add though there will be slight reduction in the implementation value 54:19 54 minutes, 19 seconds that you offer to the customer because of the efficiency gains through AI and whatnot. 54:25 54 minutes, 25 seconds Okay. The other very important uh the other very important thing uh you know that you also have to uh know is that 54:33 54 minutes, 33 seconds the changes which AI is bringing uh are are quite dramatic 54:42 54 minutes, 42 seconds and anyone who thinks that uh you know he he will uh just keep going uh as 54:52 54 minutes, 52 seconds before uh without having to fundamentally change uh the way of working will probably be proven wrong. 55:01 55 minutes, 1 second So even on our side while we do keep giving a push to add business momentum 55:08 55 minutes, 8 seconds uh a good part of our time mind share energy also goes in rethinking our own 55:17 55 minutes, 17 seconds product lines reinvesting. So for example some of our own IP uh that we 55:23 55 minutes, 23 seconds have built for various industries in the past uh you know we are busy making them 55:30 55 minutes, 30 seconds AI enabled uh we are busy bringing agents into them uh so that they are ready for tomorrow. Now some of this 55:38 55 minutes, 38 seconds work does not show up as revenue. Some of this work would probably uh take uh our time and energy away uh from what 55:46 55 minutes, 46 seconds would have you know added more numbers uh to our financial statements in this quarter and next quarter maybe. But then 55:54 55 minutes, 54 seconds we are working on some of these things which are longer term value uh rather rather than immediate. So there are some 56:02 56 minutes, 2 seconds other product lines that we are currently uh building up working on because we are looking at how the life 56:09 56 minutes, 9 seconds and the organization will be in the next 3 to 5 years time and not just in the next two or three quarters. 56:17 56 minutes, 17 seconds Perfect. Thank you sir. That was my last question which you already answered that are we then thinking of transitioning into something. Thank you very much. All the bills to everyone. Thank you. 56:25 56 minutes, 25 seconds Thank you. 56:26 56 minutes, 26 seconds Thanks a we take the next question from Siddharti. Siddhart you can go please. 56:35 56 minutes, 35 seconds Hello. Hi Dr. M. Am I audible? Yes S. 56:40 56 minutes, 40 seconds Hi. Thank you for taking my question. Uh so you mentioned uh data and AI services 56:47 56 minutes, 47 seconds uh is now roughly uh 10%. 56:51 56 minutes, 51 seconds Um where do you see that settle say uh two to three years from now or even even longer. 57:01 57 minutes, 1 second What will happen in two to three years time is that some of this will become indistinguishable from the rest. Uh it'll become so much a part of 57:09 57 minutes, 9 seconds everything that you wouldn't be able to say that this is uh data and AI and that is not. 57:18 57 minutes, 18 seconds Uh so that is what is going to happen. 57:21 57 minutes, 21 seconds At the moment we are able to say because we are coming from with a with a historical background and we are able to say okay this is data and this is data 57:29 57 minutes, 29 seconds and that is not but then in the next 3 to 5 years it'll all become an integral part of everything that we do. 57:39 57 minutes, 39 seconds Okay. Okay. That's helpful. And um and that that has been coming with a higher margin 57:46 57 minutes, 46 seconds um to your company as well right? It will you know at the moment uh you know we cannot say that because a lot of 57:53 57 minutes, 53 seconds these things are uh in sometimes they are in experimental stage uh sometimes you are just you know investing in doing 58:00 58 minutes pilots uh but uh eventually it will okay okay um and with a lot of the 58:09 58 minutes, 9 seconds automization um that you mentioned even in your own processes with AI um is that 58:16 58 minutes, 16 seconds in a way cannibalizing some of our existing revenue would you say? 58:23 58 minutes, 23 seconds You see the thing is I wouldn't say that it is cannibalizing you know the right way uh to look at it is that if we don't do it uh then we 58:32 58 minutes, 32 seconds would either not win the customer uh or uh you know uh you know that need from 58:39 58 minutes, 39 seconds customer will anyway go away. Uh the thing is that you have to do all of this. It's not a choice. You have to do 58:46 58 minutes, 46 seconds because you know you can't assume that the customer is captive. Uh you have to do all of this to stay uh relevant. You have to do all of this to be more 58:55 58 minutes, 55 seconds competitive and you have to keep bringing uh the customers timelines and prices down. Uh so we are not uh you 59:02 59 minutes, 2 seconds know to stay at the edge you have to sometimes take some calls. So you do for 59:09 59 minutes, 9 seconds example say that uh if you were doing uh let's say a certain task just to give an example a certain task of some report 59:17 59 minutes, 17 seconds writing or some uh BI dashboard creation which was being done earlier and now when you use AI to do that you are able 59:24 59 minutes, 24 seconds to do it significantly faster. Uh so that's you know uh that's cannibalizing what was being done earlier but it's not a choice that you have. 59:34 59 minutes, 34 seconds Right. Right. Just wanted to get a sense of uh that. Um my final question um I 59:42 59 minutes, 42 seconds noticed that um US um has come down slightly uh this quarter and India has gone 59:50 59 minutes, 50 seconds slightly up. Um is that sort of a trend that we can expect going forward or um 59:58 59 minutes, 58 seconds not really? You see first of all I I think those percentage points are very very small uh you know so it is not 1:00:04 1 hour, 4 seconds really an indication uh of uh uh any any uh big shift uh but then uh and as I 1:00:13 1 hour, 13 seconds have mentioned in some of my earlier uh calls uh if you see India as a whole which is product plus services uh it's 1:00:22 1 hour, 22 seconds fairly competitive with rest of the world uh India plus uh product plus services still uh accounts for like 47 1:00:29 1 hour, 29 seconds 48% of the total revenue but then the proportion of product and services in India is very different from the proportion of product and services in 1:00:37 1 hour, 37 seconds the international market in India uh in international market our uh product uh you know versus services is in the range 1:00:46 1 hour, 46 seconds of uh the product is typically between 22 to 25% of the total revenue uh in India the same number uh can go 1:00:54 1 hour, 54 seconds somewhere between 55 to 60% also Okay. Okay. Okay. Uh those are all my questions. Thank you Vas. 1:01:04 1 hour, 1 minute, 4 seconds Thank you very much. 1:01:06 1 hour, 1 minute, 6 seconds Thank you Sat. Sir I request participants to limit their questions to two questions. Uh sir we'll take the next question from Mayawad. May you can go ahead please. 1:01:16 1 hour, 1 minute, 16 seconds Yeah. Hi. Uh am I audible? Yes ma'am. 1:01:20 1 hour, 1 minute, 20 seconds Yeah thank you for the opportunity. I have just one questions on the AI and data services like which is currently around 10% of the overall PI and it's 1:01:28 1 hour, 1 minute, 28 seconds growing at 25%. Right? So like uh if you can share like what percent of the new deal wins in the last few quarters like 1:01:35 1 hour, 1 minute, 35 seconds uh included AI components and how much has the average deal size increase due to the AI cross-ell. 1:01:43 1 hour, 1 minute, 43 seconds Uh I think I I responded to a part of your question uh you know in the previous uh last conversation I was 1:01:50 1 hour, 1 minute, 50 seconds having with this gentleman. Uh you see some of these things are getting so much integrated with uh your overall work. 1:02:00 1 hour, 2 minutes uh you know more and more customers when they are looking and thinking about their ERP and CRM systems are also seeing that what 1:02:09 1 hour, 2 minutes, 9 seconds other data they need to bring in and how do they bring that data and put it together in a uh let's say a data lake 1:02:17 1 hour, 2 minutes, 17 seconds and what BI and then ultimately AI work can be done out of that uh you know we 1:02:24 1 hour, 2 minutes, 24 seconds have given broadly that you know this is we are seeing it at around 10% now and I I think uh you know trying to 1:02:33 1 hour, 2 minutes, 33 seconds you know fine-tune it to a more specific number will probably be just an artificial way of looking at something uh which is not so indistinguishable 1:02:44 1 hour, 2 minutes, 44 seconds can just give him some field factor if we added five customers in the last quarter I can tell you that in for three 1:02:51 1 hour, 2 minutes, 51 seconds of them there was data and AI as a component part of the proposal and it constituted ballpark around 20%. 1:03:03 1 hour, 3 minutes, 3 seconds Okay. Yeah, that that yeah that was mine. Thank you so much for the answering question and all the best to the team. Okay. Thank you. 1:03:10 1 hour, 3 minutes, 10 seconds Thanks ma'am. Sir, we'll take the next question from Sil Chait. Sil you can go ahead. 1:03:15 1 hour, 3 minutes, 15 seconds Thanks for the opportunity. uh just I would like to keep so hindi was expecting a 25 30% growth because we 1:03:25 1 hour, 3 minutes, 25 seconds have been having that for the last three four months but we have flat results so I just want to know from you giving the macroeconomic conditions I mean the flat 1:03:34 1 hour, 3 minutes, 34 seconds results are a good thing for us you're expecting worst uh scenario or 1:03:42 1 hour, 3 minutes, 42 seconds I would like to your take on the you know you were breaking. I'm not sure 1:03:48 1 hour, 3 minutes, 48 seconds if I heard you fully uh but uh were you saying that getting a flat result is we 1:03:56 1 hour, 3 minutes, 56 seconds were expecting worse and therefore we are happy getting a flat result is that yes yes yes 1:04:03 1 hour, 4 minutes, 3 seconds you know I I don't think that would be accurate to say uh you know we don't uh uh you know 1:04:11 1 hour, 4 minutes, 11 seconds we don't go with that design to say that you know okay we expected it to be much worse so we are happy that it is flat. 1:04:18 1 hour, 4 minutes, 18 seconds There isn't there isn't that much of time to think about all this. You know, we just keep moving forward. Uh you know, you keep working on opportunities 1:04:26 1 hour, 4 minutes, 26 seconds and deals and you keep uh changing uh the organization uh you know 1:04:32 1 hour, 4 minutes, 32 seconds on you know whatever is needed uh to win uh in in in this race. Uh so I don't think it'll be it'll be right to say 1:04:41 1 hour, 4 minutes, 41 seconds that we expected worse and we are happy that it stayed flat. No, that's not the case. uh invariably at the end of a quarter we are always thinking that oh 1:04:49 1 hour, 4 minutes, 49 seconds you know this deal slipped and that deal slipped and you know in the following quarter again the same thing happens and then so it's an ongoing thing but I 1:04:56 1 hour, 4 minutes, 56 seconds think it is not right to say that we expected worse and we are happy that we are flat okay fine thank you sir uh so one more 1:05:04 1 hour, 5 minutes, 4 seconds question I think so couple of quarters back or I don't able to recolct the name I think so we had a partner with someone 1:05:11 1 hour, 5 minutes, 11 seconds in Canada for business development or something uh so have have we done I mean 1:05:19 1 hour, 5 minutes, 19 seconds since we have cash so are we doing the same thing in other geographies as well and whether that was fruitful the partnership or the business 1:05:27 1 hour, 5 minutes, 27 seconds what we have done so what we have done uh you see in the the last couple of 1:05:33 1 hour, 5 minutes, 33 seconds weeks so uh by the way you know that partnership that we had uh is is no longer active because we became more 1:05:42 1 hour, 5 minutes, 42 seconds active directly uh in the region and the the the company that we had a partnership with their own level of 1:05:49 1 hour, 5 minutes, 49 seconds activities in this area kind of started tapering down. Uh but uh Canada is a is 1:05:55 1 hour, 5 minutes, 55 seconds a is a very active region for us. Uh we have some extremely important customers and sizable customers from whom we have 1:06:03 1 hour, 6 minutes, 3 seconds been uh building a good business traction uh in Canada. But uh broadly speaking otherwise uh in the in the last 1:06:12 1 hour, 6 minutes, 12 seconds couple of weeks uh we have added more headcount uh in at least three regions. 1:06:17 1 hour, 6 minutes, 17 seconds Uh we have added a senior consulting uh person project management and consulting person in the US and we have added uh 1:06:25 1 hour, 6 minutes, 25 seconds you know junior salespeople uh in both Africa and in the Middle East. 1:06:32 1 hour, 6 minutes, 32 seconds Okay. Okay. Thank you sir and all the best. Thank you very much. 1:06:37 1 hour, 6 minutes, 37 seconds We'll take the last question for the day from Ganesh Kumar Fank. Ganesh, you can go ahead please. Am I audible sir? Yes Ganesh. 1:06:46 1 hour, 6 minutes, 46 seconds Yeah. So if you slice and dice your uh customer and prospect base based on you knowmemes, 1:06:53 1 hour, 6 minutes, 53 seconds larger enterprises and all that do you see any common pattern or any common challenges with respect to you know any delay in decision- making? 1:07:04 1 hour, 7 minutes, 4 seconds Oh yeah absolutely. uh you know and this has this has varied a little bit you 1:07:11 1 hour, 7 minutes, 11 seconds know geography to geography uh but uh I think the best will be that you know I will just ask Rajie to talk about what 1:07:19 1 hour, 7 minutes, 19 seconds he's experiencing in India and Ritu to talk about what she's experiencing in some of the other geographies Rajiv you want to go first 1:07:28 1 hour, 7 minutes, 28 seconds so from India perspective I can tell you that inme the momentum is going on there is no direct 1:07:36 1 hour, 7 minutes, 36 seconds impact on the decision making. But for the enterprise and the large organization and related to their child account, they're definitely 1:07:44 1 hour, 7 minutes, 44 seconds they they have that impact and they can you know that there there was a delay in 1:07:51 1 hour, 7 minutes, 51 seconds the decision making in terms of what what they will go but not in the theme segment there the momentum is going on. 1:07:59 1 hour, 7 minutes, 59 seconds Ru can tell about no we see the same thing in other geographies as well where sincememes the 1:08:08 1 hour, 8 minutes, 8 seconds decision making lies with say one two people on the top so definitely it's easier but then the more you go to the 1:08:16 1 hour, 8 minutes, 16 seconds midsized and large enterprises it's it's a multistakeholder then sometimes board 1:08:22 1 hour, 8 minutes, 22 seconds approvals also take time um so yeah we see the same thing but then at the same time we also then because of that 1:08:31 1 hour, 8 minutes, 31 seconds sometimes see decisions slipping between one quarter or the other quarter but it's uh 1:08:39 1 hour, 8 minutes, 39 seconds but but the momentum is on in all the regions that we are active in Africa though is one region where uh you 1:08:47 1 hour, 8 minutes, 47 seconds know decision- making has been significantly longer uh than other regions but uh I guess uh you know 1:08:57 1 hour, 8 minutes, 57 seconds uh it It's been like that uh you know for all sizable accounts there. 1:09:05 1 hour, 9 minutes, 5 seconds Great. Thank you sir. 1:09:07 1 hour, 9 minutes, 7 seconds Thank you sir. 1:09:10 1 hour, 9 minutes, 10 seconds Since there are no further question sir would would you like to give any closing comments? 1:09:15 1 hour, 9 minutes, 15 seconds Uh well, you know, I think we kind of summed up uh uh everything that I would 1:09:22 1 hour, 9 minutes, 22 seconds have wanted to say uh in my presentation and then also uh as part of the responses to various questions. Uh we 1:09:32 1 hour, 9 minutes, 32 seconds are in very interesting times. uh we might uh you know not have had a you 1:09:39 1 hour, 9 minutes, 39 seconds know a a big growth year uh behind us but uh you know we know that we are in a 1:09:45 1 hour, 9 minutes, 45 seconds space and we are at times where uh you know things are moving on and we are uh 1:09:53 1 hour, 9 minutes, 53 seconds doing what is needed uh to catch on uh with this uh product lines are changing, customer requirements are changing and 1:10:00 1 hour, 10 minutes we are changing uh you know our whole set of offerings uh to make sure that we 1:10:07 1 hour, 10 minutes, 7 seconds stay uh at leadership positions here uh and you know the one consistent question 1:10:14 1 hour, 10 minutes, 14 seconds that everybody had was that Microsoft is growing rapidly why are we not growing very correct observation uh it has uh 1:10:22 1 hour, 10 minutes, 22 seconds been the case but then uh Microsoft's numbers do not always immediately reflect into customer partner numbers 1:10:31 1 hour, 10 minutes, 31 seconds and this is not just for us there's also for various other partners particularly if you are in consulting and bizapp space and not just in the product 1:10:38 1 hour, 10 minutes, 38 seconds selling licensing license selling space but uh it just proves that we are in the right space working with the right on 1:10:45 1 hour, 10 minutes, 45 seconds the right technology stack with the with the right company which is Microsoft and this will start bringing uh impact uh in 1:10:55 1 hour, 10 minutes, 55 seconds the in the coming years more importantly I would say that our focus at this point in time given the pace at which technology and uh the business environment has moved. 1:11:05 1 hour, 11 minutes, 5 seconds Our focus is not so much in in terms of what happens just this quarter and the next quarter. We have to put focus on what happens uh you know next year and 1:11:14 1 hour, 11 minutes, 14 seconds the next three years. Uh because AI is going to change uh the customer requirements and AI is going to change 1:11:21 1 hour, 11 minutes, 21 seconds what we have to deliver to customers uh to stay relevant to their needs. 1:11:28 1 hour, 11 minutes, 28 seconds Thank you sir. Thank you to the management team for your valuable time and thank you for all the participants for joining on the call. This brings us to the end of today's conference call. 1:11:36 1 hour, 11 minutes, 36 seconds You all may disconnect. Thank you. Thank you very much.