Avenuesai Ltd — Q3 FY26

Avenuesai Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Y54MqrghXIA Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to Avenues AI Limited Q3 FI26 earnings conference call hosted by Go 0:09 9 seconds India Advisor. As a as a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions 0:18 18 seconds after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star and zero on 0:26 26 seconds your touchdown phone. Please note that this conference is being recorded. I now end the conference with Mr. Rajat Gupta 0:34 34 seconds from Go India Advisor. Thank you and over to Mr. Gupta. 0:39 39 seconds Yeah, thank you NRA. Uh good evening everyone and welcome to Avenue Limited earnings call to discuss the Q3 FY26 0:46 46 seconds results. We have on the call with us today Mr. Vishal Mata chairman managing director, Mr. Vishwas Patel, managing director and chief executive officer and Mr. Sil Babat, chief financial officer. 0:59 59 seconds Also joining us on the call today is Mr. 1:00 1 minute B. Ravi who advising A News AI on corporate and financial strategy as an independent consultant. 1:07 1 minute, 7 seconds We must remind you that the discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risk that the company faces. 1:18 1 minute, 18 seconds I now request Mr. Vishal Ma to take us through the company's business outlook and financial highlights subsequent to which we'll open the floor for Q&A. 1:26 1 minute, 26 seconds Thank you and over to you sir. 1:29 1 minute, 29 seconds Thank you Rajat. Good afternoon everyone and thank you for joining us. Today I'd like to cover three important themes. 1:36 1 minute, 36 seconds First our quarterly performance and how we think through growth and profitability. Second, I will explain the strategic structural evolution of 1:44 1 minute, 44 seconds Avenues AI into an AI native transaction infrastructure platform and why this shift materially expands our long-term 1:53 1 minute, 53 seconds uh growth opportunity. And third, I'd like to outline our integrated ecosystem which spans across Rediff, Rediff 1, CC 2:02 2 minutes, 2 seconds Avenue and Fonetic AI, how they all work together as a compounding flywheel and what investors should expect from us over the next two years. 2:12 2 minutes, 12 seconds Let me begin. This quarter represents a genuine inflection point for the company. Not just because of strong financial performance, but because the 2:21 2 minutes, 21 seconds architecture that we have been building over the past several years is now operating at a unified scalable system. 2:28 2 minutes, 28 seconds We delivered one of our strongest quarters to date with sustained growth in payment volumes, expanded profitability and accelerating platform 2:36 2 minutes, 36 seconds integration. But more importantly, the strategic pillars we committed to scale regulatory depth and AI integration as well as our ecosystem design are now 2:45 2 minutes, 45 seconds converging into a visible competitive advantage. 2:48 2 minutes, 48 seconds During the quarter, we completed our corporate rebranding to Avenues AI limited. This is not a cosmetic change. 2:55 2 minutes, 55 seconds It's a structural evolution. We are no longer a payment gateway company. We are building an AI native transaction 3:02 3 minutes, 2 seconds infrastructure platform which is full st full stack regulated datari and compounding. 3:08 3 minutes, 8 seconds As you all know artificial intelligence is no longer an overlay for any system. 3:14 3 minutes, 14 seconds For us it is embedded across our routing fraud detection risk management reconciliation orchestration customer engagement and decision automation. 3:23 3 minutes, 23 seconds The avenues AI identity represents what we have already become an intelligence-driven financial infrastructure company anchored by CC 3:32 3 minutes, 32 seconds Avenue and increasingly relevant in global markets. 3:36 3 minutes, 36 seconds I want to share how we see our re self-reinforcing flywheel. 3:41 3 minutes, 41 seconds Avenues AI operates as a closed loop ecosystem where c consumers will generate intent, businesses will 3:49 3 minutes, 49 seconds transact and operate. AI orchestrates the decision. Payments monetize every interaction and data will compound into 3:57 3 minutes, 57 seconds an advantage for us. Every transaction makes the system smarter and every data point improves automation. 4:06 4 minutes, 6 seconds Every improvement strengthens our retention. And this is just not a linear revenue model. This is a learning 4:13 4 minutes, 13 seconds system. At the center of this flywheel sits RIFF 1 and CC Avenue. the operating system of our ecosystem. Let me talk about our integrated architecture here. 4:25 4 minutes, 25 seconds On the consumer side, Rediff integrates identity, intent, engagement, and increasingly financial participation. 4:34 4 minutes, 34 seconds With a very large registered user base, UPI entry through a financial wellness positioning and an evolving AI native 4:42 4 minutes, 42 seconds content layer, RIIF is becoming a meaningful consumer gateway for us. 4:47 4 minutes, 47 seconds On the business side, Rediff 1 becomes the convergence layer, the AI native back office formemes, enterprises and 4:55 4 minutes, 55 seconds institutions. It integrates communication workflows, compliances and operational intelligence into a single environment. 5:03 5 minutes, 3 seconds At the monetization core sits CC Avenue, the economic engine of our system. Its role is evolving from payment gateway to 5:12 5 minutes, 12 seconds an AI optimized financial execution layer combining compliance scale orchestration and intelligence. 5:20 5 minutes, 20 seconds And powering all of this is Fonetic AI, the invisible orchestrator in our system. We think of Fonetic not just as a standalone AI company. It is the 5:29 5 minutes, 29 seconds brains of our ecosystem. It converts every data into an action. Whether to approve, reject, whether to root or retry, whether to predict or prevent or 5:38 5 minutes, 38 seconds whether to notify. It deploys agentic workflows across payments, operations, risk and compliance in customer communication. 5:47 5 minutes, 47 seconds The outcome is somewhat measurable which is lower customer acquisition cost, higher processing, improved approval 5:55 5 minutes, 55 seconds rates, reduced operational friction and overtime structural margin expansion. 6:02 6 minutes, 2 seconds I want to touch upon how the system compounds over time. Consider a small business operating on Rediff 1. It acquires customers using Rediff. It runs 6:10 6 minutes, 10 seconds operations on Rediff 1. It accepts payments via CC Avenue. It uses chronetic agents to optimize pricing, reduce payment failures and automate reconciliation. 6:20 6 minutes, 20 seconds As that business grows, payment volumes increase. As volume increases, our data intelligence improves. And as 6:27 6 minutes, 27 seconds intelligence improves, automation increases. 6:31 6 minutes, 31 seconds And we believe as automation increases, margins also expand. The switching cost move beyond just contractual dependency 6:40 6 minutes, 40 seconds and they become operationally existential. 6:43 6 minutes, 43 seconds This we believe is the power of integration. 6:46 6 minutes, 46 seconds Finally, we see a clear two-year structural outcome. Consumer scale expanding via rediff business lockin 6:54 6 minutes, 54 seconds depending and deepening through rediff one. Predictable monetization compounding through CC Avenue and margin 7:02 7 minutes, 2 seconds expansion over time through AI. This is not an incremental feature growth. This is a platform level operating leverage. 7:09 7 minutes, 9 seconds And we don't want to build a quarterly story. It's a compounding story. We believe very few companies operate simultaneously across consumers, 7:18 7 minutes, 18 seconds merchants, regulated payment infrastructure and AIdriven orchestration and even fewer still have them integrated into a closed loop 7:26 7 minutes, 26 seconds learning architecture and that is the opportunity in front of us and this quarter for the first time we are seeing the flywheel move as one system. I will 7:34 7 minutes, 34 seconds now hand over the call to Vishwas for the operating details. Vishwas over to you. 7:39 7 minutes, 39 seconds Thank you Visal. Uh good afternoon everyone. Uh this quarter has been a execution-driven quarter for our payments and platform businesses. While 7:48 7 minutes, 48 seconds the strategic direction has been clearly articulated earlier, the focus over the last few months has been on converting 7:56 7 minutes, 56 seconds the that strategy into operating scale, regulatory readiness and moni monetizable infrastructure. 8:05 8 minutes, 5 seconds Let me walk you through the key business developments. At the core, CC Avenue continues to scale steadily across 8:12 8 minutes, 12 seconds merchant segments supported by strong demand from large enterprises, utilities, telecom, travel, hospitality, 8:18 8 minutes, 18 seconds etc. We are seeing higher share of credit card and large ticket transactions, increased participation 8:26 8 minutes, 26 seconds from enterprise and institutional merchants, consistent onboarding acrossmemes and cooperative banking 8:33 8 minutes, 33 seconds networks. As discussed earlier, we are consu uh concisely prioritizing volume-like growth and absolute profitability over headline take rates. 8:44 8 minutes, 44 seconds This approach is already delivering strong stronger cash flows and operating leverage even in a competitive pricing environment. 8:53 8 minutes, 53 seconds This quarter was a particularly important from a regulatory capability perspective. We received our inprinciple 8:59 8 minutes, 59 seconds RBI license for issuing prepaid payment instruments enabling us to launch wallet stored value products and prepaid 9:07 9 minutes, 7 seconds solutions in the near future under the CC Avenue ecosystem. We secured the IFSCA approval at Gib City which will 9:15 9 minutes, 15 seconds allow us to participate directly in crossber payments, escro services and international merchant acquiring. We 9:22 9 minutes, 22 seconds also received the RB authorization for offline payment aggregation extending a presence across physical merchants locations through pausebased networks. 9:32 9 minutes, 32 seconds Importantly, most of these approvals are close to monetization and not long gestation initiatives. Our international 9:40 9 minutes, 40 seconds payment business continue to gain traction. In the UAE and Saudi Arabia, the transaction volumes remain strong, supported by enterprise clients and 9:48 9 minutes, 48 seconds platform integrations. In Oman, we are now working with multiple leading banks, expanding our role as a technology and 9:55 9 minutes, 55 seconds payment infrastructure partner. GIF City will provide us with a strategic base for US denominated settlements and crossber flows, which we expect to scale meaningfully over the coming quarters. 10:07 10 minutes, 7 seconds We remain confident that the international markets will contribute a growing share of net payment revenue over the medium term. 10:15 10 minutes, 15 seconds A key focus this quarter was oper optimizing our AIE payment architecture. 10:23 10 minutes, 23 seconds With the launch of CC Avenue commerce AI and pay central.ai, we are enabling autonomous autonomous transaction 10:30 10 minutes, 30 seconds initiated by verified AI agents and compliance ready auditable payment execution. This is not posh positioned 10:38 10 minutes, 38 seconds as a consumer feature rollout but as a foundational infrastructure for enterprises, platforms and financial 10:45 10 minutes, 45 seconds institutions that are preparing for AI native workflows. 10:50 10 minutes, 50 seconds We believe that the architecture will evolve gradually but has the potential to boost a structural revenue stream 10:58 10 minutes, 58 seconds over time alongside a traditional payment processing. On the consumer side, red pay will continue to progress 11:06 11 minutes, 6 seconds through regulatory and technical readiness. 11:09 11 minutes, 9 seconds Our approach here is deliberately phase up and wallet capabilities will coexist. 11:15 11 minutes, 15 seconds Focus is on financial wellness, low cost distribution and brand land engagement. 11:22 11 minutes, 22 seconds We are avoiding high acquisition strategies seen elsewhere in the ecosystem. 11:28 11 minutes, 28 seconds The advantage we have in our existing user reach and integrated payment infrastructure which allows us to scale 11:34 11 minutes, 34 seconds responsibility. To summarize, this quarter reflects a strong execution in a core payment business, the completion of 11:42 11 minutes, 42 seconds a broad defensible regulatory stack, the measured progress in AIdriven commerce and consumer platforms, and a continued 11:51 11 minutes, 51 seconds discipline around scale, profitability, and risk management. 11:56 11 minutes, 56 seconds A bill avenue platform continues to gain ground particularly in semi- urban and rural markets. We process millions of 12:04 12 minutes, 4 seconds utilities, mobile recharges and bill payment transactions this quarter with agentled adoption driving deeper financial inclusion. In parallel, Res 12:13 12 minutes, 13 seconds Avenue revenue is leveraging our AI based tools to help hotels implement smart pricing and occup optimized 12:19 12 minutes, 19 seconds occupancy rates. This quarter, a revenue platform enabled hotel room bookings of 12:26 12 minutes, 26 seconds 7 lakh 68,17 room nights at an average of 8,534 room nights a day, crossing over 6,50 million for our 3,500 plus hotel properties. 12:39 12 minutes, 39 seconds This not only strengthens our position in the hospitality sector, but also demonstrates how AI is becoming to create beginning to create tangible value across our merchant ecosystem. 12:51 12 minutes, 51 seconds Early pilots in fraud detection, risk scoring, and dynamic pricing are demonstrating how AI can improve merchant efficiency, reduce costs, and 13:00 13 minutes unlock incremental revenues to remain focused on building trusted, compliant, and intelligent payment infrastructure 13:09 13 minutes, 9 seconds at scale while selectively investing in platforms that extend a long-term growth runway. With this, now I invite a CFO, 13:18 13 minutes, 18 seconds Mr. Sunil Bagat to take you through the financial performance for this quarter. Over to you Sunil. 13:27 13 minutes, 27 seconds Thank you Visasir. Good afternoon to everyone on the call. 13:32 13 minutes, 32 seconds This quarter reflects consistent execution across our core payments business supported by improving scale, 13:39 13 minutes, 39 seconds stable operating costs and continued discipline on capital allocation. Our consolidated gross revenue for the 13:46 13 minutes, 46 seconds quarter stood at 2381 cr. A growth of 122% year-over-year driven primarily by 13:54 13 minutes, 54 seconds higher payment volumes, a stronger contribution from enterprise merchants and continuous expansion across domestic 14:01 14 minutes, 1 second and international markets. The consolidated net revenue stood at 149 cr a growth of 6% year-over-year reflecting 14:10 14 minutes, 10 seconds steady monetization despite a competitive pricing environment and a higher mix of large ticket transactions. 14:18 14 minutes, 18 seconds Our focus remains on absolute profitability and cash generation rather than headline tick rate metrics. 14:25 14 minutes, 25 seconds Adjusted EITA for the quarter came in at rupees 98 cr and absolute growth of 25% year-over-year reflecting improved operating leverages as volume scaled up. 14:37 14 minutes, 37 seconds The IITA as a percentage of net net revenue also jumped from 56% to 66% on year-over-year basis. Our adjusted pet 14:46 14 minutes, 46 seconds stood at rupees 86 cr a growth of 59% year-over-year supported by cost control stable credit cost and higher contribution from value added services. 14:57 14 minutes, 57 seconds Our PAT margin has also jumped from 39% to 58%. 15:02 15 minutes, 2 seconds Even as we continue to invest in technology, regulatory readiness and platform development, our aida and pet margins remain healthy, demonstrating 15:11 15 minutes, 11 seconds the resilience of our underlying business model. As discussed earlier, the quarter saw a higher share of credit 15:19 15 minutes, 19 seconds card and enterprise lead volumes which typically carry over carry lower take rates but significantly higher absolute 15:27 15 minutes, 27 seconds contribution. Our strategy is very clear that is prioritize volume laid customer acquisition and operating cost. 15:38 15 minutes, 38 seconds We believe this approach creates a more durable earnings profile particularly as scale continues to build across merchant and institutional segments. 15:48 15 minutes, 48 seconds We continue to maintain a strong balance sheet with healthy cash flows from operations and low leverage. This financial flexibility allows us to fund 15:57 15 minutes, 57 seconds investments in AI and platform infrastructure and selectively invest in growth initiatives such as radif without 16:05 16 minutes, 5 seconds stressing returns on or liquidity. Our capital allocation remains measured and returndriven. 16:12 16 minutes, 12 seconds We have revised our fullear guidance for financial year 26 as mentioned in slide number 17. The 16:19 16 minutes, 19 seconds upward revision in FI26 guidance reflects a materially improved business outlook and stronger than anticipated 16:26 16 minutes, 26 seconds operating momentum based on current trends in the transaction volumes, enterprise onboarding and international expansion. 16:37 16 minutes, 37 seconds We remain confident in meeting and potentially exceeding our stated financial objectives while continuing to 16:44 16 minutes, 44 seconds invest prudently in long-term growth engines. To conclude this quarter demonstrate that scale and profitability 16:51 16 minutes, 51 seconds are growing together. Margins remain resilient despite mixed changes and our balance sheet strength positions us well 16:59 16 minutes, 59 seconds for the next phase of growth. We remain focused on execution efficiency and reinforcing the financial foundations of the business as we build for the future. 17:09 17 minutes, 9 seconds With this we'll now open the floor for questions. 17:14 17 minutes, 14 seconds Thank you very much. We will now begin with the question and answer session. 17:19 17 minutes, 19 seconds Anyone who wishes to ask the question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. 17:30 17 minutes, 30 seconds Participants are requested to use handsets while asking a question. 17:34 17 minutes, 34 seconds Ladies and gentlemen, we will wait for a moment while the questions. 17:41 17 minutes, 41 seconds Participants you may press star and one to ask a question. 17:51 17 minutes, 51 seconds First question is from the line of Mo Jen from Dr. Chria. Please go ahead. 17:58 17 minutes, 58 seconds Hi team thank you for taking my question. Uh so my first question is on pay central's opportunity. So sir I 18:06 18 minutes, 6 seconds tried to you know size pay central's opportunity by looking at India's retail digital payment which is somewhere 18:12 18 minutes, 12 seconds around 900 lakh cr but I I tried to narrow it down to you know PG addressable segments like cards U G UI 18:19 18 minutes, 19 seconds net banking B2B vendor etc which gives me an agency sizable market of around 50 18:26 18 minutes, 26 seconds lakh cr within's own 8 to 10 lakh crV I'm estimating 50% or 50% of automatable 18:36 18 minutes, 36 seconds of it being automatable and assuming just a 5% adoption rate I'm getting a figure of like 30 to 40,000 cr in terms 18:45 18 minutes, 45 seconds of market size of pay central TPV. Uh so is this the right way to think about pay centers addressable market and adoption you know potentially over to you sir. 18:57 18 minutes, 57 seconds Uh thanks basically this is Vishal. I'll take this question. Um so you're right India is the largest real-time payment 19:05 19 minutes, 5 seconds market and you know the next value layer is intelligence on top of the rail. So what traditional aggregator would do is 19:14 19 minutes, 14 seconds somewhat route transaction settle payments and manage reconciliations. But this AI payment agent which is pay 19:22 19 minutes, 22 seconds central it cuts it cuts across all different payment aggregators. So integrates 19:29 19 minutes, 29 seconds with within the MCPS of all different payment aggregators and not just CC Avenue. So it auto routes transactions 19:37 19 minutes, 37 seconds for success probability. It predicts the fraud. It disputes. It optimizes all the checkout flows and it negotiates routing and settlement logic and automates all 19:46 19 minutes, 46 seconds this merchant reconciliation and collections. So theoretically the way to think about it is this payment is actually moving to a decision 19:54 19 minutes, 54 seconds infrastructure decision layer. uh so in in some ways it becomes like an operating system for all money flows and it's just not a pipe. Now with that said 20:03 20 minutes, 3 seconds the way we think about it internally is that you know I mean through UPI alone imagine the number of transactions that 20:11 20 minutes, 11 seconds India process is maybe 300 lakh crores whatever that numbers is and there's a lot more through other mechanism and and 20:19 20 minutes, 19 seconds you know I mean in some ways that intelligence layer will command a few bits of that flow which is enormous. So 20:27 20 minutes, 27 seconds I mean theoretically what we have seen is that the global pattern in this is um you know somewhere you know this AI 20:36 20 minutes, 36 seconds agents monetization which is the pay central piece is somewhat you know that share of that 20:43 20 minutes, 43 seconds bips that you would perhaps generate through this particular intelligence layers and for that to work and that TAM 20:50 20 minutes, 50 seconds to play out you need to have open rails which UPI does which is completely interoperable and APIdriven um you need to have massive scale with 20:59 20 minutes, 59 seconds you know some margins um because that is what will force this innovation to come through and then this whole merchant digitization wave which already has 21:07 21 minutes, 7 seconds started it's usually playing out so in our thesis where pay central sits is um 21:16 21 minutes, 16 seconds you know merchants don't manage payments AI agents manage money flows end to end 21:22 21 minutes, 22 seconds and whoever owns this layer will control the merchant financial workflow, their whole credit insights, the transaction 21:31 21 minutes, 31 seconds intelligence and the ecosystem control and that is a far bigger price than a gateway margin and so for us it is 21:39 21 minutes, 39 seconds somewhat u it's it's competing to become that intelligence layer um and of course that payment agents have to be adapted 21:47 21 minutes, 47 seconds across uh I we believe it's only a matter of time the the adoption in the AI wave is significantly picking up and 21:54 21 minutes, 54 seconds that's what we'd like to play out. But to your point, I think the the T that you're talking about just on the CC Avenue ecosystem that we think about is 22:02 22 minutes, 2 seconds also pretty significant. The other good thing just so that you know is that when you use agents, traditionally you will take a few minutes to close a transaction uh from intent to closure. 22:14 22 minutes, 14 seconds Using agents, you can do it in seconds. 22:17 22 minutes, 17 seconds So theoretically when you think about closing a transaction, you will have to look at the product, look at the checkout, figure out how you essentially 22:25 22 minutes, 25 seconds make that payment and then the payment routing comes back and then the confirmation comes through. And generally what you would see is that and 22:33 22 minutes, 33 seconds most companies they optimize on how how many less clicks would you need to make as a human to be able to close a transaction. As an agent, you can do it 22:41 22 minutes, 41 seconds in a few seconds. it's far more sophisticated and much more controlled and the determinism also is very very 22:48 22 minutes, 48 seconds large in that and a lot of protocols are being set out um you know to be able to handle such a thing. So yeah, I I think 22:56 22 minutes, 56 seconds to your point, I think the T is very large. Uh but it'll also be a function of adoption by many of the many of the merchants and and we believe that 23:05 23 minutes, 5 seconds consumer personal agents are any of us coming up. So I think transferring that agent to agent protocol and using pay 23:12 23 minutes, 12 seconds central as a payment agent becomes very um you know fertile if you come to think of it. 23:19 23 minutes, 19 seconds So thanks for the detailed answer sir. 23:21 23 minutes, 21 seconds Just to follow up on this. So I understand that uh it's not just a pay center it's not just about you know the transaction but it's about controlling 23:30 23 minutes, 30 seconds the entire merchant financial workflow which you just mentioned. uh again uh so I know it is initial stage but uh I just 23:39 23 minutes, 39 seconds wanted to understand how do we you know monetize it yeah is it possible for you to tell the blended take rate which we 23:46 23 minutes, 46 seconds can get from this opportunity itself or it's very initial stage and it's uh very hard to tell this what is 23:54 23 minutes, 54 seconds no it's not hard to tell I will tell you generally um payment gateway as a business is not going to go away you still require the regulatory approvals 24:03 24 minutes, 3 seconds and so on and so forth to come in. But when you actually give it to an agent um 24:10 24 minutes, 10 seconds agent will also start earning bips on transactions. 24:14 24 minutes, 14 seconds So theoretically for someone who is uh whose payment I mean I think you know one can imagine that very low 24:21 24 minutes, 21 seconds singledigit bips across all the transaction volume is is what the opportunity holds out to become and we believe that that's significant 24:30 24 minutes, 30 seconds if you come to think of it. So it'll just add up into the margins and the bips. 24:36 24 minutes, 36 seconds Okay, just to clarify this no single digits or whatever it may be, it's a add-on to the earlier bits which we were collecting from just that is correct. Absolutely. 24:46 24 minutes, 46 seconds Thank you. That that answers my question. Thanks for the detailed one, sir. All the best. Thank you. 24:53 24 minutes, 53 seconds Next question is from Dashil Pandya from Fentress Capital. Please go ahead. 25:00 25 minutes Hi, can you hear me? Hello. Yes sir. Go ahead. 25:05 25 minutes, 5 seconds Yeah. So I just wanted to understand one thing with the offline PR license now in place uh like you know you cover both online and physical payment flows. So 25:13 25 minutes, 13 seconds should we view offline as a meaningful to your AI or you know through this higher transaction density richer merchant level database will see something better. 25:29 25 minutes, 29 seconds So the question is that is offline going to help your AI strategy? Can you can you kindly repeat the question? Yeah. Yeah. Yeah. Yeah. 25:37 25 minutes, 37 seconds Um so I think you know Yeah. I mean we have the online PA license and now we 25:45 25 minutes, 45 seconds also have the offline PA license and I mean I don't want to use the word you know 25:53 25 minutes, 53 seconds just a pipe because theoretically offline payments is just a pipe that you know most offline merchants still have 26:02 26 minutes, 2 seconds that basic pipe of QR scan payment done um you know less intelligence in pricing routing credit um I mean even if you 26:10 26 minutes, 10 seconds come to Think of it all these collections and automations and cash offflow optimization all of that is somewhat you know the missing layer. Um 26:18 26 minutes, 18 seconds and so I mean when where the agent comes in in the offline payments is that rather than just the merchant receiving 26:26 26 minutes, 26 seconds money the agent can actually handle the context of the transaction which means 26:33 26 minutes, 33 seconds that it can decide what option to use as a payment routing. 26:38 26 minutes, 38 seconds It can maximize the success rate, detect fraud, identify all the unusual transaction sizes, personalize the 26:46 26 minutes, 46 seconds transaction by um triggering certain workflows and somewhat automate collections as well. So we think that I 26:56 26 minutes, 56 seconds mean if you come to India has more than 60 million plus small merchants. I mean 27:02 27 minutes, 2 seconds the digital QR and you know one can create a massive opportunity for a system that sits between the merchant 27:09 27 minutes, 9 seconds and the payment rail and you can learn from every offline transaction and improve the future decision automatically. That's the opportunity. 27:17 27 minutes, 17 seconds So, so we think that if you come to think of this offline payment market, um, I mean you can think of any 27:26 27 minutes, 26 seconds influence transaction by the agent times the value which is unlocked is the opportunity somewhere and that's far bigger than just the share of just the 27:35 27 minutes, 35 seconds payment fees. Um so we think that you know this whole AI payment agent in some 27:44 27 minutes, 44 seconds ways turns every you know offline payment transaction into a decision engine. Um effectively becoming somewhat 27:54 27 minutes, 54 seconds a merchant financial operating system rather than just a pipe that moves money. 28:05 28 minutes, 5 seconds Does this answer your question or? Yeah, this does. It does. It does. Thank you. 28:14 28 minutes, 14 seconds Next question is from the line of Prana Mashualla from Dalat. Please go ahead. Hello. 28:23 28 minutes, 23 seconds Yeah. Hi, I'm a Yes sir. Go ahead. Yes. Uh yeah. Hi. Uh thank you for the opportunity. Uh one question was uh regarding the red one. 28:33 28 minutes, 33 seconds Uh so uh how many merchants have we uh onboarded on uh the rediff one uh you 28:41 28 minutes, 41 seconds know shifted to uh that platform and uh how is the activity uh in terms of active transaction and uh you know 28:49 28 minutes, 49 seconds adoption so some color on that would be great sure so 28:58 28 minutes, 58 seconds I mean of course you know we've publicly disclosed that you know somewhere ready is the 29:05 29 minutes, 5 seconds whole productivity suite of all these enterprise platforms and they combine communication commerce 29:13 29 minutes, 13 seconds business productivity software suites and in some ways you know we target sovereignity 29:21 29 minutes, 21 seconds um you know by you know in some ways local data hosting advantages and air gapping it out so that you don't have to 29:28 29 minutes, 28 seconds use um you know any cloud system if you come to think of it and so the strategic 29:36 29 minutes, 36 seconds performance that we think is when what you talk about the install base is that there are more than 20,000 plus merchants already on the ready fund 29:44 29 minutes, 44 seconds system and you know that you know the number of 29:52 29 minutes, 52 seconds users of that is you know magnitude of that number much much larger and so we think that yeah I mean it's it's growing 30:00 30 minutes fairly well for us while we not divert the exact numbers but the way to think of rediff one's performance is not just 30:09 30 minutes, 9 seconds as a standalone you know the it is essentially just the foundational identity and a productivity layer uh in 30:17 30 minutes, 17 seconds our ecosystem. So it somewhat the strength lies in activating all this existing enterprises and consumer base 30:25 30 minutes, 25 seconds and deepening the engagement and enabling the the the entire ecosystem with payments and and AI services. 30:34 30 minutes, 34 seconds And so I mean for us Redund is less about the short-term revenue and and more about building the structural control layer that somewhat underpins of 30:42 30 minutes, 42 seconds a long-term monetization strategy if that makes sense. Sure. 30:50 30 minutes, 50 seconds Sure. So, of course, uh we have like uh almost a 10 million plus uh merchant 30:56 30 minutes, 56 seconds days and uh uh most of I'm sure most of them are uh are mid to uh small scale as 31:05 31 minutes, 5 seconds well. So uh specifically we uh how much you know what be the typical timeline that you might be looking at in terms of 31:14 31 minutes, 14 seconds uh onboarding more larger number of customers and uh what kind of opportunity uh are you looking at in terms of onboarding more customers. 31:24 31 minutes, 24 seconds We think a reason reasonable number to go after for the next 12 to 18 months is at least you know 31:32 31 minutes, 32 seconds high single digit to double digit percentage of our base. 31:36 31 minutes, 36 seconds Um and and that's how we look at the opportunity so far. 31:41 31 minutes, 41 seconds So you know we believe that given the touch points and given that they trust us with so many of their other transactions I think know that's a fair 31:49 31 minutes, 49 seconds estimate to go after. Um but yeah, it would be it'd be cool to have a million merchants using Red Fun. 31:59 31 minutes, 59 seconds Absolutely. Uh just uh a few booking if I may. Uh uh what led to uh this 32:06 32 minutes, 6 seconds guidance uh upgrade? Uh is there uh some one-off uh revenue or something that we 32:13 32 minutes, 13 seconds are expecting uh in a in a segment? No, I think we've already reached our um you know I mean 32:22 32 minutes, 22 seconds you know that we've for us since payments becomes the intelligence layer and intelligencedriven area 32:31 32 minutes, 31 seconds um we think that we've deliberately made investments in scale and data density. 32:36 32 minutes, 36 seconds So I mean payments are increasingly a you know in some ways intelligent service and maximizing transaction flow. 32:44 32 minutes, 44 seconds So we've if you look at you know our performance we've we've reached the guidance that we had given for the last 32:51 32 minutes, 51 seconds for this year in FI26. So the upgrade is really a combination of our capacity to actually monetize and 33:01 33 minutes, 1 second somewhat we've prioritized revenue growth and also the depth in our ecosystem. So we are positioning the platform to generally significantly 33:09 33 minutes, 9 seconds um you know give you know better you know value uh and so it's we don't see 33:16 33 minutes, 16 seconds this as a as a one-off. We think that you know that's how we potentially look like and it somewhat reflects in terms 33:25 33 minutes, 25 seconds of if you look at the last three quarters and our performance and if you look at the extrapolation of what it means for this quarter you perhaps come down to our guidance numbers. 33:37 33 minutes, 37 seconds Sure. Uh just uh last one on mine. Uh we usually used to share uh uh transaction 33:44 33 minutes, 44 seconds processing value for various of our platforms. Uh just on uh the CC avenues uh TPV that's possible. 33:58 33 minutes, 58 seconds Yeah. If you look at the slide number 15, uh you would see that the value. 34:04 34 minutes, 4 seconds Okay. Thank you. Thank you. Thank you. 34:10 34 minutes, 10 seconds Next question is from L of De Sanchetti from Mana Finance. Please go ahead. Hi. Am I audible? 34:20 34 minutes, 20 seconds Yes sir. Go ahead. 34:21 34 minutes, 21 seconds Okay. Uh you mentioned AI uh reduced payment failures by 9% in Q3. How much of this improvement is structural and 34:30 34 minutes, 30 seconds embedded versus a model specific gain that could plateau? 34:39 34 minutes, 39 seconds Uh uh go ahead. 34:42 34 minutes, 42 seconds So uh basically AI uh is intelligent routing. So when we get a particular failure from a 34:50 34 minutes, 50 seconds particular bank, right? And then then we have the ability to route it through multiple other banks that we are working 34:57 34 minutes, 57 seconds at in the back end. So a intelligent uh AI based system that we have implemented which ges on the success rate uh going 35:06 35 minutes, 6 seconds down to as back as just the last five minutes which calculates the best success rates it can 35:13 35 minutes, 13 seconds be intelligently routed through this thing and this is not across just one or two options but this is across uh 200 plus options that is there right and 35:22 35 minutes, 22 seconds even it's just different cards that we have with eight different banks and different systems. So this kind of uh 35:29 35 minutes, 29 seconds this kind of uh uh this thing really helps in boosting uh success rates also not only on the success rate a lot of 35:37 35 minutes, 37 seconds transactions uh were also being dropped because of the earlier negative databases and frauds and drop ship locations and many 35:46 35 minutes, 46 seconds other things. Now, now with AI, we have been able to do a very dynamic and real 35:53 35 minutes, 53 seconds uh uh real kind of a thing where we have been able to you know drop certain transactions where we see a fraud 36:01 36 minutes, 1 second emerging in real time. Uh so that it does not uh go only for the real transaction. the success risk 36:08 36 minutes, 8 seconds automatically gets improved when these guys are trying through multiple different modes uh and using different 36:14 36 minutes, 14 seconds other fraud fraudulent numbers and cards to stop it. So these all all help in you 36:22 36 minutes, 22 seconds know boosting uh real transactions and other things that is there to to to answer your question um you 36:30 36 minutes, 30 seconds know I'll tell you structurally um a lot of gains have already been accounted for in the system for example all this bank 36:38 36 minutes, 38 seconds up times and all of that I mean that's already there and I'm sure that it's improving by the day so my expectation is that u you know a lot of what you 36:48 36 minutes, 48 seconds would see going forward is you know really this model gains that come through through all this you know the 36:56 36 minutes, 56 seconds whole retry logics and the routings that Vishbas talked about and all this you know how do you handle all this timeouts 37:04 37 minutes, 4 seconds and you know how do you essentially improve your you know somewhat scoring algorithms and and so I think 37:13 37 minutes, 13 seconds my expectation is it's we haven't qu it's a good question we haven't quantified that yet um because we've we 37:20 37 minutes, 20 seconds always assumed that you know structural gains are are are not going to be the largest contributing 37:28 37 minutes, 28 seconds factor given that you know India has some of the finest payment rails out there. So and and those are also I mean 37:37 37 minutes, 37 seconds whatever that structural gain would would would happen they're somewhat slow to appear but it's very hard to attribute. Um it's a good question. 37:48 37 minutes, 48 seconds So uh uh we won't be able to tell what is a direct aeta or a net take impact of this reduction. 37:56 37 minutes, 56 seconds No we can uh structure the question was that are you seeing this what I understood your question to be is that 38:03 38 minutes, 3 seconds are you able to um you know get a better success rate based on structural changes or the model changes. 38:13 38 minutes, 13 seconds Yes. Is that and and what I what I was communicating was that yes there is a there is an improvement. We can compute 38:20 38 minutes, 20 seconds the IDIA but to quantify how much of that success rate improvement is from structural changes versus model changes is not an exercise we have undertaken. 38:31 38 minutes, 31 seconds Okay. So what I mean by that is that I mean did that come because we have a better bank uptime 38:40 38 minutes, 40 seconds or you know some enhancements that maybe the payment raise has gone through or 38:47 38 minutes, 47 seconds you know some latency issues in the network that have been identified and cleaned up or whether it was a better 38:54 38 minutes, 54 seconds authentication flow for the client. So those are somewhat more structural but we think it's somewhat model driven. 38:59 38 minutes, 59 seconds That's what I meant because what Rashu said is right which is we've we've configured our framework to include you 39:07 39 minutes, 7 seconds know with all these AI and optimizations that we've put in that it's much smarter routing and retry logics and all this 39:14 39 minutes, 14 seconds timeout handling and other capabilities that improve and all the fraud scoring improvements that we've made that would 39:22 39 minutes, 22 seconds have contributed to the largest portion of that improvement in success rate and that's what we've 39:30 39 minutes, 30 seconds uh we've thought you know uh attributed to that improvement. 39:38 39 minutes, 38 seconds You state that switching costs become existential not contractual. What percentage of revenue today comes from 39:46 39 minutes, 46 seconds customers where payment compliance and workflows are all embedded inside read one making uh switching operational infeasible. 39:57 39 minutes, 57 seconds Um you know I mean come to think of it uh there's a lot of um red fun has many 40:05 40 minutes, 5 seconds productivity suites and if you come to think of it once you offer more than one 40:11 40 minutes, 11 seconds um service the switching cost somewhat exponentially goes higher and the moment you are handling a lot 40:20 40 minutes, 20 seconds more data and and data patterns and then if you are also figuring out how to um 40:27 40 minutes, 27 seconds you know in some ways um you know that cost of actually moving all that data and being able to serve uh become 40:35 40 minutes, 35 seconds slightly higher. So once you have a flywheel framework where you are able to offer you know to a particular client 40:44 40 minutes, 44 seconds more than one service u we we think that it's somewhat and especially when you in the world of AI where you know data 40:53 40 minutes, 53 seconds becomes the mode and I'm sure one can argue synthetic data can also be produced but we think data is the mode and if you if you've been able to 41:02 41 minutes, 2 seconds utilize that data and offer those services to that merchant the switching cost exponentially increases. 41:08 41 minutes, 8 seconds because it won't do everything that you know any other system it may be very good but it won't be able to provide the 41:14 41 minutes, 14 seconds same level of efficiency that you know a system you know that utilizes data and provide provides all the AI prompts 41:22 41 minutes, 22 seconds would be able to to offer to you uh with all the learnings 41:30 41 minutes, 30 seconds great great okay I'll fall back line for next questions thank Thank you. 41:39 41 minutes, 39 seconds Next question is from the line of Vani Chanda from Alis Financial Partners. Please go ahead. 41:48 41 minutes, 48 seconds Hi, am I audible? 41:50 41 minutes, 50 seconds Bunny, you're sounding distant. Can you speak a little louder and closer please? Hello. Am I audible now? Yes. Go ahead. 41:57 41 minutes, 57 seconds Yeah. Hi. Okay. So you've added multiple lay multiple layers like agentic payments, offline PA, PPIs, crossber, 42:04 42 minutes, 4 seconds UPI and AI orchestration. So how do you prevent organization and product complexity from diluting focus before the flywheel economics fully kick in? 42:18 42 minutes, 18 seconds Hello. 42:20 42 minutes, 20 seconds Yeah. So the the question is that I mean of course the two brands that we have right now is CC Avenue and Triiff and 42:28 42 minutes, 28 seconds you know the core for us is payments. So I mean if the question is that are you 42:35 42 minutes, 35 seconds focusing on too many um areas um I I think these are all related areas 42:42 42 minutes, 42 seconds and that somewhat completes our flywheel uh the one that we have set out to architect. So we we think the focus will 42:51 42 minutes, 51 seconds continue being that and we have um you know uh orchestration layer using a lot of AI 43:00 43 minutes frameworks that can somewhat compound that opportunity for us we believe but yeah I mean the the things these are 43:07 43 minutes, 7 seconds nomatures but at the core it's you know in some ways productivity suites and and payments and that will always continue being our focus. 43:19 43 minutes, 19 seconds Okay. So there are no set frameworks to prevent the complexity from diluting the focus. 43:28 43 minutes, 28 seconds No, we I mean if we think that all of these are somewhat naturally interweaved with each other and you know I think 43:38 43 minutes, 38 seconds that in some ways it's convenience. Um okay so um I mean the focus for us is 43:44 43 minutes, 44 seconds actually to make u the ecosystem flywheel work okay and these are important components of that. 43:53 43 minutes, 53 seconds All right and my second question is what internal guards exist on the ROI 44:01 44 minutes, 1 second um in terms of our investments. Yeah. 44:07 44 minutes, 7 seconds Um so you know that we've been appropriately conservative all the way from the beginning and we forward invest and we want to know what that investment 44:16 44 minutes, 16 seconds will end up looking like for us and so I think you know we'll continue with the same philosophy uh which is how do we 44:24 44 minutes, 24 seconds make sure that you know what we are spending for you know that ROI is measured and managed and we are able to able to drive it but see our core 44:33 44 minutes, 33 seconds principle if you ask us is that I mean Our guardrails is not about stopping investments. 44:40 44 minutes, 40 seconds Uh we just want to make sure that whatever we spend will help us in terms of advantage or some platform advantage 44:46 44 minutes, 46 seconds if not today tomorrow. So um our our guardrails for ROI is not short-term thinking. Um we want to be an AI first 44:54 44 minutes, 54 seconds payments business. We want to you know evaluate you know what happens in the next 12 months because a lot of things 45:01 45 minutes, 1 second are changing and we want to track what is the margin on a transaction and how do we much like the success rate and you 45:09 45 minutes, 9 seconds know this flaw you know the loss reductions and and time reductions and um I mean if you don't we won't take up 45:16 45 minutes, 16 seconds an initiative which won't improve our unit economics if that makes sense and that's like the the the very short-term 45:24 45 minutes, 24 seconds you know thought process because a lot of things are changing. But from a long-term perspective, we have to think about merchant stickiness. The pretty 45:31 45 minutes, 31 seconds much what we talked about in terms of how do we essentially get the switching cost rather than contractual to make it slightly more 45:39 45 minutes, 39 seconds existential and how do we use data as a mode which is how do we ensure that you know you are somewhat you know reducing 45:49 45 minutes, 49 seconds the amount of effort and then the long-term ROI thinking is really about where do we see the nonlinear scale how 45:56 45 minutes, 56 seconds do we ensure that we are uh bringing intelligence because AI is really intelligence and if you don't have that 46:03 46 minutes, 3 seconds monetization it won't work. So for us you know um I mean that future monetization is 46:12 46 minutes, 12 seconds really the strategic ROI test for us and you know we we want to make sure that 46:19 46 minutes, 19 seconds the ecosystem pull should always increase for us which means that every new feature everything that we do should increase the 46:26 46 minutes, 26 seconds dependency of the merchant or the customer or increase the engagement that they have with us and that's been our 46:34 46 minutes, 34 seconds philosophy of thinking through ROI. I hope this answers your question. Okay. Thank you so much. Yeah. 46:45 46 minutes, 45 seconds Thank you. 46:47 46 minutes, 47 seconds Next question is from the line of Amish Kanani from Noise Investment Managers. Please go ahead. 46:54 46 minutes, 54 seconds Uh yeah. Hi sir. Uh congrats on a good quarter on profitability terms. So sir this quarter you know we have seen uh quite a bit of uh interesting gross 47:02 47 minutes, 2 seconds revenue growth versus a very muted net revenue growth and uh you know the net rate is uh you know kind of hard from 11 47:10 47 minutes, 10 seconds days to 6 months uh and uh I understand you have been saying last few quarters that we chasing absolute profitability 47:17 47 minutes, 17 seconds and not the NPR uh but you know net revenue growth of 6% interestingly in this quarter has uh you know driven our aida by 25%. 47:27 47 minutes, 27 seconds uh and uh you know profitability at 60%. 47:30 47 minutes, 30 seconds So the question uh is one uh sir if I even simply you know difference the net revenue uh you know uh it's grown by 47:39 47 minutes, 39 seconds only 8 to 9 crores versus AIDA growing at 20 20 crores. Uh so one you can explain uh you know how this quarter is 47:47 47 minutes, 47 seconds panned out in terms of operating leverage and even our AIDA is actually grown much more than you know the revenue and absolute terms. So if you 47:55 47 minutes, 55 seconds can give us some sense of you know uh how is it uh that you know we could uh extract uh more profitability at a beta 48:02 48 minutes, 2 seconds level uh more than even net revenue. Uh so if you can explain that because it uh definitely you know in this quarter you know focusing on absolute profitability 48:11 48 minutes, 11 seconds is uh is uh you know burnout. So uh you know what what kind of expense management that we have done or you know 48:18 48 minutes, 18 seconds is there any oneoff that was there last quarter which is not this quarter stuff like that. So can I explain that will be helpful. Uh and in that context sir you 48:26 48 minutes, 26 seconds know I pardon me for you know my uh you know knowledge of payment system uh not being you know foolproof. I wanted to 48:34 48 minutes, 34 seconds understand uh if if and when this UPI payment you know starts to you know become chargeable uh does it uh help us 48:43 48 minutes, 43 seconds or it uh you know kind of affects us you know that a structural level if you can give us uh some sense of you know uh UTI 48:50 48 minutes, 50 seconds being UTI payment being not charged as of now there are lots of noise it will become chargeable at some stage and some payment uh you know providers are saying 48:59 48 minutes, 59 seconds you know you can't keep on you know subsidizing this infrastructure So can you give us some sense of our business model versus you know just change at all and that happens that'll be really good. 49:09 49 minutes, 9 seconds Thanks uh sure the vishwas you want to take the uh UPI part and then I'll tell sun and 49:18 49 minutes, 18 seconds I'll talk about the the rate and the beta piece. Yeah. 49:22 49 minutes, 22 seconds So look if if and when UPI becomes chargeable is going to be beneficial to all the players including us. Right now 49:29 49 minutes, 29 seconds uh MDR is at zero right now for UPI right. So the whole focus area is on all the other options that we have other 199 49:37 49 minutes, 37 seconds options that we have to get the margins and to increase business on that one. 49:42 49 minutes, 42 seconds But yes of course when UPI becomes chargeable the women are offline and online both can contribute significant margin if and where if the MDR ever 49:51 49 minutes, 51 seconds comes in. So I as a chair at PCI also have been working with the finance ministry and other things and hopefully 49:58 49 minutes, 58 seconds we are hopeful that some kind of uh uh MDR should come in at least for large 50:04 50 minutes, 4 seconds merchants and as well as we are hoping that uh even the uh the money that the 50:12 50 minutes, 12 seconds finance ministry gives out every year to supp all these UPI transaction also grows significantly. So that can be an 50:19 50 minutes, 19 seconds additional one. Apart from that Vishal to you. 50:24 50 minutes, 24 seconds Sure. So um to your point two things one is net take rate has decreased but you're saying that the bit as a percentage in the slide it shows up to 50:32 50 minutes, 32 seconds be a larger number as a percentage. So if I understand your question why is that uh particular uh I mean 50:40 50 minutes, 40 seconds phenomena where net revenue not grown much but but much more and that that explains our Yeah. 50:47 50 minutes, 47 seconds Yeah. So, so the way to think about so for us uh see listen as far as the net take rate is concerned absolute terms you're right we've actually the net take 50:55 50 minutes, 55 seconds rate has gone down but that's a deliberate investment in scale and data density for us because payments are increasingly a gateway to high value 51:03 51 minutes, 3 seconds financial intelligence service that's the way we want to architect the company and maximizing all these transaction flows today will strengthen what we look 51:10 51 minutes, 10 seconds like in the long term monetization and so by prioritizing revenue growth that and and somewhat the ecosystem depth in 51:18 51 minutes, 18 seconds terms of usage. We think that positioning the platform to generate significantly higher lifetime value per merchant over time will be the right 51:26 51 minutes, 26 seconds metrics for us to live with. And so I mean it's less a position of our 51:33 51 minutes, 33 seconds competitiveness in the industry and our efficiency and more about a strategic decision on on getting to that scale and data density. 51:41 51 minutes, 41 seconds Now if you look at the IBIDA numbers, IBIDA is um basically uh percentage of net revenue. And so as net revenue is 51:50 51 minutes, 50 seconds increased um you know from you know say about 130 51:57 51 minutes, 57 seconds 140 crores to 148 crores that 82 crores the EBIDA percentage is a percentage of net revenue and so certain expenses of 52:06 52 minutes, 6 seconds course have been more efficient. Um you know you know that we have redeployed quite a bit in terms of how we want to 52:14 52 minutes, 14 seconds scale and and build out this company. Um it does not apply to us. It'll apply for every company. There will be hiring 52:21 52 minutes, 21 seconds freeze on many of the potential areas that can be automated using uh agents. a lot of manual tasks, reconciliations, 52:29 52 minutes, 29 seconds onboarding you would there will be and we believe that there is a significant shift happening even today because um 52:37 52 minutes, 37 seconds you know you would the kind of workforce that you would require in a AI first framework is very different than what you would require in the past and so you 52:46 52 minutes, 46 seconds will see a significant change in terms of just the workforce mix and while some of the large companies you've been 52:53 52 minutes, 53 seconds you've been hearing lately in the news that there is a change um we also have a s a significant opportunity to upgrade and change the the kind of opportunity. 53:05 53 minutes, 5 seconds So the position that we c we think about is that anything which is manual which is taskdriven where you just have to 53:14 53 minutes, 14 seconds keep on doing the same thing over and over again those all those activities will be taken over by task agents and we're deploying that across all our 53:23 53 minutes, 23 seconds companies. Second is the orchestration piece where you would want to once that task has been defined and identified and you need to actually create workflows. 53:33 53 minutes, 33 seconds There will be orchestration agents. I think that also is somewhat completely automated going forward. The the real you know trick over here is this 53:41 53 minutes, 41 seconds decision agents that will perhaps drive decisions and and you will see that over a period of time you'll see many companies become super efficient um and 53:50 53 minutes, 50 seconds and leaner. So, so we think that that's actually somewhat a margin expansion opportunity, but rather than thinking of 53:57 53 minutes, 57 seconds it as um you know reducing the workforce and we would rather essentially upgrade the entire workforce and make sure that 54:06 54 minutes, 6 seconds there's a natural transition to where we are versus where we would want to think of being. So, you'd see some of that going on um you know in in terms of the 54:15 54 minutes, 15 seconds overall size and scale of the opportunity. Uh but yeah, I mean you know I I think that you know from a take 54:22 54 minutes, 22 seconds rate perspective yeah it's since it's a percentage of the of the net revenue that's why you see the percentages uh go in that direction if that makes sense. 54:32 54 minutes, 32 seconds Sure sir. And sir uh about upgrading the guidance sir if we uh do a required run rate for fourth quarter from you know 54:40 54 minutes, 40 seconds the 9 month uh and if you take the midpoint of the revised guidance uh so fourth quarter uh you know we are we're quite conservative here. Uh so the 54:49 54 minutes, 49 seconds question one uh I understand uh if the seasonally third quarter is the best one but even if I take the midpoint of uh 54:56 54 minutes, 56 seconds you know our guidance and and you know subtract the three uh three quarters then uh you know uh uh you know the run 55:04 55 minutes, 4 seconds rate for even fat is not even you know matching the second quarter which is you know normalized quarter. So the question is one uh are we conservative here and 55:12 55 minutes, 12 seconds should we uh you know optimistically at least assume that you know we should be hopefully on the on the higher side of the guidance or is there some 55:20 55 minutes, 20 seconds seasonality which you know we have to keep in mind while we model our our projection. Thanks. 55:27 55 minutes, 27 seconds Yeah, I think it midpoint of that guidance range would of course be achievable in our opinion and we have 55:35 55 minutes, 35 seconds been appropriately conservative. Um we would like to if you're doing and if you find that we are doing you know you know 55:42 55 minutes, 42 seconds uh better and larger which is reasonable to also assume we'd be investing more in branding marketing and some of the other 55:50 55 minutes, 50 seconds activities. So it's reasonable to assume that we'll end up somewhere in the midpoint. Sure. Thanks. 55:58 55 minutes, 58 seconds Yeah. 56:00 56 minutes Thank you. Next question is from the mind of Keral Ma from Omara Capital Private Limited. Please go ahead 56:13 56 minutes, 13 seconds and may I request to unmute your line and proceed with the question please. 56:22 56 minutes, 22 seconds Can you hear me? The line for the part has been dropped. 56:30 56 minutes, 30 seconds Ladies and gentlemen, due to time constraint, that will be the last question. I'll now hand the conference over to the management for closing comments. 56:39 56 minutes, 39 seconds Thank you all for joining our third quarter um earnings call and we look forward to keeping in touch and um you 56:47 56 minutes, 47 seconds know looking forward to um you know um building out a terrific u you know strategy and a boat going forward using 56:55 56 minutes, 55 seconds a lot of AI frameworks. Uh so we will keep in touch and keep you updated. Thank you. 57:02 57 minutes, 2 seconds Thank you very much on behalf of Go India Advisors. That concludes this conference. Thank you for joining us and you may now disconnect your notes. Thank you. 57:13 57 minutes, 13 seconds Thank you.