Basilic Fly Studio Ltd — Q3 FY26

Basilic Fly Studio Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=jUAxyRQTouI Published: 2 months ago

0:07 7 seconds Ladies and gentlemen, good day and welcome to the Basilic Fry Studio Limited Q3 and 9 months FI 2026 earnings 0:15 15 seconds conference call hosted by Valerm Adviserss. As a reminder, all participant lines will be in the listenonly mode and there will be an 0:22 22 seconds opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an 0:30 30 seconds operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Miss Purwangi Jen from Ballerim Advisors. 0:41 41 seconds Thank you and over to you. 0:44 44 seconds Good afternoon everyone and a very warm welcome to you all. My name is Purangi Jen from Valerim Advisors. We represent the investor relations of Best Fly 0:53 53 seconds Studio Limited. On behalf of the company and valerim advisers, I would like to thank you all for participating in the company's earnings conference call for 1:01 1 minute, 1 second the third quarter and 9 month ended of the financial year 2026. 1:06 1 minute, 6 seconds Before we begin, let me mention a short cautionary statement. Some of the statements made in today's earnings conference call may be forward-looking 1:13 1 minute, 13 seconds in nature. Such forward-looking statements are subject to risk and uncertaintities which could cause actual results to differ from those anticipated. 1:22 1 minute, 22 seconds Such statements are based on management's belief as well as assumptions made by and information currently available to the management. 1:29 1 minute, 29 seconds Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decision. The purpose of today's 1:37 1 minute, 37 seconds earnings call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. Now, let me 1:45 1 minute, 45 seconds introduce you to the management participating with us in today's earnings call and hand it over to them for their opening remarks. We have with 1:52 1 minute, 52 seconds us Mr. Balak Krishna, managing director and CEO of the company. Mrs. Yoga Lakshmi, president, business strategy 2:00 2 minutes and wholetime director and Mr. Gorova, chief financial officer of the company. Without any delay, I request Mr. 2:08 2 minutes, 8 seconds Parakrishna to start with his opening remarks. Thank you and over to you sir. 2:13 2 minutes, 13 seconds Thank you Purwandi and good afternoon to everyone. Warm welcome to you all for our earnings conference call for 2:20 2 minutes, 20 seconds discussion for performance of Q3 and YTD research for FI 2026. 2:27 2 minutes, 27 seconds Before I give you the operational highlights of the period under review, let me first start by giving a brief overview of the company for some of 2:35 2 minutes, 35 seconds those participants that may be new to our company. The six studio developers started in 2013 incorporated as private 2:44 2 minutes, 44 seconds limited in 2016 got listed as public limited in 1933 with a record own 2:51 2 minutes, 51 seconds subscription of 287 times Indian global MC studio providing end to end vision 2:57 2 minutes, 57 seconds services across solution series web content and commercial over last one decade we have established ourselves as 3:06 3 minutes, 6 seconds a trusted creative partner within the global vision effect ecosystem by consistently delivering high quality outcomes across diverse 3:15 3 minutes, 15 seconds formats and platforms. Our company operates through an integrated delivery model supported by studios across India 3:23 3 minutes, 23 seconds which is in Chennai schooling and Bangalore to start with United Kingdom, France and Canada. With a workforce of 3:31 3 minutes, 31 seconds over 750 talented professionals and growing, enabling seamless global project execution. This international 3:40 3 minutes, 40 seconds presence allows us to remain close to our client while leveraging operational strengths across geographies. Our 3:48 3 minutes, 48 seconds services spans the entire visual effect value chain including pre visualization, asset creation, animation, effect 3:56 3 minutes, 56 seconds simulation, lighting, rendering and final compositing. This comprehensive capability allows us to deliver end to 4:04 4 minutes, 4 seconds end solutions and position awareness of a reliable partner for complex high quality productions. 4:11 4 minutes, 11 seconds A key strategic milestone for us after the July 2024 acquisition of a majority stake 70% in UK subsidies on office the 4:20 4 minutes, 20 seconds company with two decad legacy of BAFTA and any award-winning workforce strength of 300 professionals and project 4:28 4 minutes, 28 seconds credentials of damson sapian crow and many more including visa 4:35 4 minutes, 35 seconds academy award nominated mission import this acquisition has strengthened our creation capabilities enhanced access to 4:43 4 minutes, 43 seconds premium clients like Netflix, Amazon, Disney, Sony, Mus and more and expanded our international market presence as 4:51 4 minutes, 51 seconds well. It also aligns with our long-term mission of building a globally integrated vision platform. We continue 4:58 4 minutes, 58 seconds to serve leading global studios, training platforms and production houses supported by longstanding client 5:05 5 minutes, 5 seconds relationship and a strong foundation of business. These enduring partnerships reflect the trust our clients place in 5:14 5 minutes, 14 seconds our creative capabilities, execution, excellence and delivery consistency. 5:19 5 minutes, 19 seconds Now coming to the business performance and operational and this year we continue to deliver strong 5:26 5 minutes, 26 seconds business performance delivering revenue growth of 2.1x and pack growth 2.2x rate for India's standalone business 5:34 5 minutes, 34 seconds maintaining run rate of 100 per quarter at control level and will cover numbers initiated in this brief such robust 5:43 5 minutes, 43 seconds growth is the result of industry reborn with company taking advantage of vendor of first choice for production houses 5:50 5 minutes, 50 seconds such as Netflix Amazon and more I'm also pleased to share with the three of our projects mission Impossible the final 5:59 5 minutes, 59 seconds reckoning the electric steam and shutterbat got nominated for academy award and reached in the top 20 level. 6:08 6 minutes, 8 seconds Big thanks to our BF team for the hard work and maintaining consistency year over year. This dedication reinforces 6:16 6 minutes, 16 seconds our position as the customer partner to lead global streaming and streaming platforms. 6:23 6 minutes, 23 seconds Happy to share that we added 12 new clients while serving 56 active clients across regions of Europe, UK, US, Canada 6:32 6 minutes, 32 seconds and Australia and also delivering successfully project on schedule and receive multiple client appreciation across international and domestic 6:41 6 minutes, 41 seconds market. Kudos to our professional team across global locations and thanks to our clients for respect and confidence. 6:50 6 minutes, 50 seconds I'm happy to share that the company's investing in strengthening global business development team and we got four senior leaders joined us across the 6:57 6 minutes, 57 seconds UK and US market and Marian point joined us as creative director and business director respectively for the Los Angeles market. 7:07 7 minutes, 7 seconds Ariel bringing experience from Mario local franchises such as Harry Potter, the matrix 3, reload, the game and elboy 7:17 7 minutes, 17 seconds and likewise Marian works for Guardians of the Galaxy and so likewise we also 7:23 7 minutes, 23 seconds recruited Ferrer and joined us for the for the UK market's notable 7:30 7 minutes, 30 seconds contributions are Basa the lion king and the jungle book. She is one of the most favorite VFX supervisors in Disney. I 7:38 7 minutes, 38 seconds like my work for and captain and market. 7:44 7 minutes, 44 seconds In addition, we are also onboarding a season creative ed and VFX supervisor from high experience where we will be 7:51 7 minutes, 51 seconds starting in London effective Mar who will lead to international victory as well as high value mandate. We are also 8:00 8 minutes strengthening our supervisor brings with two more supervisor joining from and both bringing strong A production 8:08 8 minutes, 8 seconds expertise aligning with the technology power forward operating model. 8:12 8 minutes, 12 seconds Collectively, this leadership expansion significantly enhances our access to brilliant global claims, strengthening 8:19 8 minutes, 19 seconds our front end capability and improves conversion of high value opportunities in our favor. As we scale into our next 8:27 8 minutes, 27 seconds phase of global growth, strengthening leadership across creative business development and people strategy will remain our key priority. And also glad 8:36 8 minutes, 36 seconds to share that we are actively pissing for several high value market projects including three and one with MGM Amazon 8:44 8 minutes, 44 seconds which are currently at advanced stages of our finalization. 8:48 8 minutes, 48 seconds On the domestic side, we have appointed industry veteran as marketing to scale on India strategy which is perfect over 8:56 8 minutes, 56 seconds the India domestic market. This is complemented by the onboarding of a decent onset BS supervisor to strengthen 9:03 9 minutes, 3 seconds client engagement and execution capabilities within the domestic production ecosystem. 9:09 9 minutes, 9 seconds From an organization standpoint, we continue to institutionalize our people strategy when new CHR was joined in to 9:18 9 minutes, 18 seconds drive leadership, development, talent scalability and structured alignment as we grow locally. We have also signed a 9:25 9 minutes, 25 seconds structured partnership with reputed universities and colleges including highly reputed and loyal college in Chennai among others. This initiative 9:34 9 minutes, 34 seconds enables to see early career hires and establishing a sustainable efficient talent pipeline ensuring long-term 9:42 9 minutes, 42 seconds capacity building while managing large margin. 9:46 9 minutes, 46 seconds Now I would like to talk about technology. Our technology remains a core pillar of our long-term strategy and during that period we made 9:54 9 minutes, 54 seconds meaningful progress in building a smarter more scalable global VFX production platform under a driven operational system. We have deployed an 10:02 10 minutes, 2 seconds AA performance monitoring across our studios with a significantly reduced manual reporting enable the data back to 10:10 10 minutes, 10 seconds production forecasting and introduce realtime productivity tracking in our system. Importantly, it provides granular visibility to level methods 10:19 10 minutes, 19 seconds allowing leadership to take faster more informed decisions and delivery decision across project. On the production side, 10:27 10 minutes, 27 seconds we have selected complete UA across the production flow making it accessible to all the artists. This marks a key step 10:35 10 minutes, 35 seconds toward building an AML driven production ecosystem. The platform enables AI assisted workflow that enhance productivity, improve delivery 10:43 10 minutes, 43 seconds efficiency and accelerate creative output. At the same time, we support structured upskilling of our talent pool, ensuring that our teams remain 10:52 10 minutes, 52 seconds aligned with the industry shifted towards new technology working models. 11:02 11 minutes, 2 seconds In parallel, we strengthened our global infrastructure backbone. Further, we have successfully relocated our London data center to a more cost efficient 11:10 11 minutes, 10 seconds facilities. And likewise now as all of you here know the sensitivity and scale of the projects we handle cyber security and compliance 11:19 11 minutes, 19 seconds remain non-negotiable priorities during this period. We conducted red team exercises and implemented realtime dark 11:27 11 minutes, 27 seconds web monitoring to proactively identify potential vulnerabilities. These initiatives are now supported by continuous security audits across our 11:35 11 minutes, 35 seconds systems and meet global security and monitoring standards. 11:41 11 minutes, 41 seconds We have successfully completed annual certifications and compliance audits for EPN, Apple and Disney and we have also received Apple certification as well. 11:51 11 minutes, 51 seconds These validations reaffirm our adherence to the ideas to global visibility and content production standards required by leading studios and streaming platforms. 12:01 12 minutes, 1 second Further as part of our continued focus on margin resilience and operation efficiency we have initiated a cost 12:08 12 minutes, 8 seconds project in which we will make a strategic transition from a fully AWS workflow to a hybrid infrastructure 12:15 12 minutes, 15 seconds model. This transition is currently in progress and is expected to deliver approximately 50% reduction in infrastructure cost upon completion. 12:25 12 minutes, 25 seconds Importantly, this optimization does not compromise a performance. Instead, it strengthens our cost structure while 12:33 12 minutes, 33 seconds preserving the flexibility required to handle large format global productions. 12:39 12 minutes, 39 seconds We are targeting completion of this transition by July 2026 and we expect it to structurally enhance operating going 12:47 12 minutes, 47 seconds forward. In summary, this has been a period of visible execution and structural strengthening the F company. 12:55 12 minutes, 55 seconds We have expanded our global leadership, deepened the client relationship, accelerated technology adapt adoption, 13:02 13 minutes, 2 seconds optimized our customer structure and reinforce governance standards all while maintaining creative excellence and 13:09 13 minutes, 9 seconds delivery reliability. We are building not just scale but a resilient future ready global platform position to capture the next phase of growth. 13:18 13 minutes, 18 seconds division of industry. We remain confident in our strategic direction and committed to delivering sustainable value to all stakeholders. With that, I 13:27 13 minutes, 27 seconds would now hand over to the Dome of the CFO who will walk us through the financial performance of the company. 13:35 13 minutes, 35 seconds Thank you Mr. Balam and good afternoon everyone. It's a pleasure to connect with you all again today to share our 13:43 13 minutes, 43 seconds strong business and financial performance consistently for another quarter and YT results. 13:51 13 minutes, 51 seconds Before I jump into the numbers at the outset I would like to share that we have a robust growth for India 13:59 13 minutes, 59 seconds standalones both in terms of revenue as well as of margin. 14:04 14 minutes, 4 seconds We maintain consistency for the console revenue run rate. We have taken few bold 14:11 14 minutes, 11 seconds initiative required to set strong foundation for better margin trajectory 14:18 14 minutes, 18 seconds from long-term perspective. I will be talking those all points in detail as we discuss the financial data. I will now 14:27 14 minutes, 27 seconds share the financial performance for the quarter and the nine months for FY 2023. 14:33 14 minutes, 33 seconds I will start with standalone financial performance revenue update. 14:40 14 minutes, 40 seconds Supported by strong industry revival, India business continued to deliver 14:46 14 minutes, 46 seconds robust results. The company has delivered P3 revenue of 39 cr and YTD 14:54 14 minutes, 54 seconds December revenue of 94 K. At YTD level growth is 2.1x 15:02 15 minutes, 2 seconds on Y basis. Last year we were at 46 crores for the YTD. 15:08 15 minutes, 8 seconds 94 cr YTD December revenue of this year already surpassed full year revenue of last year which was 74 cr by 28%. 15:20 15 minutes, 20 seconds We expect the momentum to continue for the fourth quarter as well. Margin updates 15:27 15 minutes, 27 seconds a bit margin improved by 11.3% for the quarter and 4.1% for YD. Current 15:36 15 minutes, 36 seconds year quarter EIDA margin stands at 42.4% versus 31.1% of last year. 15:46 15 minutes, 46 seconds Current year margin stands at 46.5% versus 42.4% 4% for the last year YT 15:57 15 minutes, 57 seconds margins improved by 16.4% from 10.7 of last year quarter to 27.1 16:06 16 minutes, 6 seconds in current year improved by 14 16.4% for the quarter and improved by 5.7% for the 16:13 16 minutes, 13 seconds YTD current year margin stands at 29.2% 2% versus 23.5% 16:22 16 minutes, 22 seconds last year. Margin improvements are led by better volumes due to the increased 16:28 16 minutes, 28 seconds offshoring and better winning as vendor of first choice. 16:35 16 minutes, 35 seconds Now I will move to the consolidated financial performance of the globe. 16:40 16 minutes, 40 seconds First revenue update revenue for the quarter stands at 105 cr and for the YTD 16:48 16 minutes, 48 seconds at 294 cr delivering robust growth of 1.7x 16:55 16 minutes, 55 seconds per YTD on Y basis. Last year YTD was 169 crriven 17:04 17 minutes, 4 seconds by the industry revival and higher winning. Our winning for FY26 April to 17:11 17 minutes, 11 seconds December stand at greater than the 300 K and value yet to be delivered from the order book stand at 200 greater than the 17:20 17 minutes, 20 seconds 200 K which is almost 50% of our YTD December annual run rate. 17:28 17 minutes, 28 seconds Now I will move to the margin update. 17:31 17 minutes, 31 seconds IDA margin shrank by 2.9% for the quarter 2.8% 8% for YTD current yearda 17:41 17 minutes, 41 seconds margin stand at 19.9% was 22.7% last year pat margin strength by 4.9% for the 17:49 17 minutes, 49 seconds quarter 2.4% for the YD current year pat YTD margin stand at 11.8% 17:58 17 minutes, 58 seconds versus 14.2% 2% for last year. Total OTI other comprehensive margin shrank only 18:05 18 minutes, 5 seconds by the 2.2% for the quarter and 1.8% for YTD. Current year YTD total OTI 18:14 18 minutes, 14 seconds percentage stand at 13% versus 14.8% for the last year. I would like to take the 18:21 18 minutes, 21 seconds attention of the investor that how the numbers uh presentation has changed for 18:28 18 minutes, 28 seconds us with a fact from current quarter. As you know after the last fund raise after the last PIP fund raise we are now a 18:37 18 minutes, 37 seconds main board compliance company. Happy to share that your company transition to the India conversion smoothly and seamlessly. 18:48 18 minutes, 48 seconds If you read our last year number, there was not OCI under the I gap. So we should compare while comparing the 18:56 18 minutes, 56 seconds year-over-year comparison, we should compare OCI to the OCI to have appletole comparison. 19:03 19 minutes, 3 seconds Margin shrinkage nation now is primarily impacted by strategic initiatives to 19:10 19 minutes, 10 seconds center our global delivery model. Total impact of all irregular items stands at 2.8%. 19:19 19 minutes, 19 seconds So if I add the irregular items to the our 13% OI OCI, we are better than the last year margin percentages. 19:28 19 minutes, 28 seconds Initiative details India conversion impact that and total OCI impacted by 40 19:37 19 minutes, 37 seconds close to 4 to 8% by the India impact. We do have some other one of CERN cost which has been linked to the 19:45 19 minutes, 45 seconds organization restruct restructuring strategy. We did annual appraisal revision which was on the hold for last 19:53 19 minutes, 53 seconds two years. We onboarded a leadership hiring as Bala mentioned Adrian Di Audrey 20:02 20 minutes, 2 seconds Mariana Teresa. This leadership hiring capability enhance uh enhance our capability across India and UK. In total 20:11 20 minutes, 11 seconds we have onboarded four business development roles and five ops roles. If I consider this all the initiatives which were not in that which has been 20:20 20 minutes, 20 seconds taken additionally this all amounts to the impact of 2.8% cumulatively. 20:27 20 minutes, 27 seconds These actions while impacting the short-term margins are aimed at structurally improving long-term 20:34 20 minutes, 34 seconds efficiency and scalability. We will continue to explore more offshuring opportunities within the given legal legal framework for long-term benefits. 20:46 20 minutes, 46 seconds I will move on to the offshore expansions and the delivery mix optimization. Parallel to the workforce rationalization in the higher cost 20:55 20 minutes, 55 seconds regions, we continue to scale our offshore capabilities in India. Happy to share that offshore headcount increased by 58 FTE. 21:07 21 minutes, 7 seconds Now I will move to the infrastructure cost optimization. As Bala touched upon in his remarks, as part of our 21:15 21 minutes, 15 seconds technology le efficiency initiative, we are optimizing cloud infrastructure usage and uh reduce dependency on a fully AWS-based model. 21:28 21 minutes, 28 seconds This initiative is expected to deliver potential saving to the tune of 5 cr to 21:35 21 minutes, 35 seconds the 14 cr as it scale up over a period of the time in the FI27 and afterwards. 21:44 21 minutes, 44 seconds Importantly this transition is designed to preserve scalability and performance while structurally improving our cost 21:51 21 minutes, 51 seconds base. Now I will move to the geographical revenue mix. Our revenue continue to remain well diversified geographically. 22:00 22 minutes North America accounts for 10% Australia, New Zealand for the 2% and remaining 17%. 22:10 22 minutes, 10 seconds And European contributes to the 71% of the total revenue. Now I will move to the CIP proceed utilization. 22:19 22 minutes, 19 seconds uh as you know we raised a total of the 85 crores way back in the September 2025 22:26 22 minutes, 26 seconds by the time we are talking we are making the progress for all the objectives in 22:33 22 minutes, 33 seconds overall we have utilized to the tune of the 48% of the total fund raise uh we are yet to 22:41 22 minutes, 41 seconds utilize the funds allocated for the inorganic growth opportunities and very happy to share that M&A is at a very advanced stage of the alloy discussion. 22:53 22 minutes, 53 seconds I will touch upon briefly on the age receivable collection updates. By the way of the 31st March 2025, our age 23:02 23 minutes, 2 seconds receivable greater than 180 days stand at 53.05 05 cr we have recovered significant amount of approximately 9% 23:11 23 minutes, 11 seconds of the old receivables by YTD this summer and have more stronger commitment for the running in the next quarter but 23:19 23 minutes, 19 seconds overall data outstanding greater than 180 days remains around the old level because of the timing gap we got we were 23:28 23 minutes, 28 seconds get impacted of the lower collections into the month of the December owing to the European holidays 23:35 23 minutes, 35 seconds To summarize, we had robust India growth offshoring picked up the pace in cost to 23:43 23 minutes, 43 seconds be absorbed to deliver increased margin percentage in the years to come. While the quarter reflects planned investment 23:50 23 minutes, 50 seconds and transition cost, we have taken the decisive support steps towards structurally lowering our cost base, 23:57 23 minutes, 57 seconds increasing our offshore operational leverage, optimizing infrastructure spend, and strengthening our long-term marriages. 24:06 24 minutes, 6 seconds We believe this initiative will position us well for improved profitability as execution scales over the coming 24:15 24 minutes, 15 seconds quarters. With that I now like to open the floor for the questions and answers and oh thank you over to you po. 24:25 24 minutes, 25 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 24:32 24 minutes, 32 seconds star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 24:40 24 minutes, 40 seconds requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 24:55 24 minutes, 55 seconds We'll take our first question from the line of Anik Madwani from Step Trade Capital. Please go ahead. 25:02 25 minutes, 2 seconds Hello. Yes, Anik please go ahead. 25:08 25 minutes, 8 seconds So my question was with regards to the numbers. So uh here I can see uh there is a dip in margin of operating level 25:16 25 minutes, 16 seconds and level compared to Y or C. So could you just clarify the reason 25:24 25 minutes, 24 seconds an can you mute your connection please there's some background noise thank you uh thank you for the question Mr. Anik 25:32 25 minutes, 32 seconds this go I will take up your question uh as I briefly touch upon Mr. Anik if you compare there have been lot of 25:40 25 minutes, 40 seconds initiative taken by the management in the current financial year from the long-term strategy which scatters around 25:48 25 minutes, 48 seconds that the annual appraisal being done after the two years leadership hiring being done to strengthen our business 25:55 25 minutes, 55 seconds development team one of severance cost which has been incurred to take more offshore business and we were also been 26:04 26 minutes, 4 seconds partially impacted by the India's conversion because of the timing difference if I consider this all the initiative this all will cumulatively 26:13 26 minutes, 13 seconds sum up close to 2.5 to 2.8% in the total margin. So if you see the total OCI 26:20 26 minutes, 20 seconds margin for the YD we stand at 13%. And if I add back this oneoff I stand at 15.8% 26:29 26 minutes, 29 seconds versus the 14.8% of the last year. So in fact operationally the performance been better than the last year but because of 26:37 26 minutes, 37 seconds this initiative there is a slight dip of 1 and a half 1.8% at the total OCI level and 5% at the PAT level. 26:48 26 minutes, 48 seconds So do we see this uh uh be stable in coming quarters? 26:56 26 minutes, 56 seconds Absolutely. And in fact we are also expecting some better winning. As I said uh briefly mentioned that our winning 27:04 27 minutes, 4 seconds for the FY26 stands at a much better level than earlier. We got a new winning of the 300 27:12 27 minutes, 12 seconds crores and we standed the 200 cr of the order book to be delivered. So that's positioning us much better position that 27:19 27 minutes, 19 seconds will offset with the better utilization of the resources with a better rates to win. So we do uh we do foresee this as a 27:29 27 minutes, 29 seconds in it may be some uh impact may remains for the coming March quarter. It may not go completely off but it will be very 27:36 27 minutes, 36 seconds largely covered by the better utilizations and better rates. 27:43 27 minutes, 43 seconds Uh so your outstanding order book will be 300 plus 200 I 27:50 27 minutes, 50 seconds the winning that we have from April to December and the outstanding delivery is 200 to have it is outstanding with us which has to be delivered from our site. 28:03 28 minutes, 3 seconds Sorry 200 will be delivered again 200 is outstanding to be delivered value. 28:17 28 minutes, 17 seconds Yeah. And apart from this uh 300 CR uh uh any projects uh I mean uh are you in 28:25 28 minutes, 25 seconds talks with or expecting to add in this quarter? 28:32 28 minutes, 32 seconds Yes. out of this win there are a lot of projects which will be delivered in the running quarters. So when we say that the order book that's our winning that pertains for the April till now. Yeah. 28:43 28 minutes, 43 seconds So uh there is a pretty much large delivery which has been covered up in the running quarter and the upcoming 28:52 28 minutes, 52 seconds quarter. The large part of the undelivered 200 crabala mention will be 28:59 28 minutes, 59 seconds covered from here till the end of the 2026 calendar year. 29:08 29 minutes, 8 seconds It will be spread across from Jan 2026 till the December 2026. The delivery of the 200 K to be 29:19 29 minutes, 19 seconds the 300 cr will be delivered between April to December. Right? 29:24 29 minutes, 24 seconds No. So let me just add for clarity around here. So what we are talking that the two number we are saying 300 cr is 29:32 29 minutes, 32 seconds the new winning happened from April 25 till December 2025 29:40 29 minutes, 40 seconds out of this new winning many of the projects have been delivered by now because it's not completely undelivered 29:48 29 minutes, 48 seconds so old winning plus the new winnings all put together we are still left out the 200 cr yet to be delivered that's how 29:56 29 minutes, 56 seconds the it moves You know any order book there will always be a old order running there always will be a new winning and there the project and the delivery will 30:04 30 minutes, 4 seconds continue. So in the 9 months we have delivered the 300 cr 294 cr to be precise. So that covers some large part of this winning as well. 30:16 30 minutes, 16 seconds Okay. 30:18 30 minutes, 18 seconds So uh um if you even consider that uh out of 30:24 30 minutes, 24 seconds this 200 CR uh 100 CR will be delivered uh by uh March uh if that is possible 30:33 30 minutes, 33 seconds then uh should we expect around 100 C to climb into Scotland? 30:39 30 minutes, 39 seconds It's hard to mention the precise number for such a nearby Mr. case but uh as I said that we are generally if you see 30:48 30 minutes, 48 seconds our sorry I mean if you can give just a rough idea 30:56 30 minutes, 56 seconds what yeah the current if you see the current run rate our current run rate runs at the 100 K and uh that's how this and we 31:06 31 minutes, 6 seconds are not far away from the quarter close we are on the track so I'm saying that uh we are on the track and it's heading 31:14 31 minutes, 14 seconds towards the uh uh better winning trajectory and uh helping to uh deliver 31:23 31 minutes, 23 seconds the better uh uh higher number. 31:33 31 minutes, 33 seconds I hope that Mhm. That is Thank you. Thank you. 31:40 31 minutes, 40 seconds Next question is from the line of Vir Mahadevia from Malik. Please go ahead. 31:44 31 minutes, 44 seconds Please go ahead. Hi Bala. Hi. Vandset more. 31:52 31 minutes, 52 seconds Can you hear me? Yes, please go ahead. 31:55 31 minutes, 55 seconds Yeah. Hi Bala. Hi Gorov. Thank you for the very detailed introduction. Couple of questions from my side. Uh you know 32:02 32 minutes, 2 seconds in your press release you mentioned four high value projects between Netflix and Amazon. Could you give us an approximate range of what is the value of these uh 32:11 32 minutes, 11 seconds total value of four projects put together? 32:17 32 minutes, 17 seconds Approximately four projects average of 2 million for each project and it goes up to 8 to 9 million for these four projects. 32:26 32 minutes, 26 seconds Sorry Bala I couldn't hear you very clearly. You said 8 million 8 million in 2 million for each project on average. 32:34 32 minutes, 34 seconds Uh so approximately $8 to $9 million is what we've been discussing on these projects. 32:39 32 minutes, 39 seconds Understood. Helpful. Thank you. Okay. On the 50% cost reduction that you talk about by July 26, would you be able to maybe elaborate on that a little bit? 32:50 32 minutes, 50 seconds Where would these savings come from? Um and what would it result in terms of annual savings on a full year basis? 32:59 32 minutes, 59 seconds Sure. And yeah sure to keep you to give you an update on uh as we started working with our team in London. Uh we initially started working on towards 33:08 33 minutes, 8 seconds AWS. So the team from India used to work completely on cloud where they will be delivering project and be accessing any 33:16 33 minutes, 16 seconds files through completely from cloud area and now we are moving towards a solution where it will be more of a hybrid which 33:23 33 minutes, 23 seconds is between cloud and we will have a storage centrally in cloud and we will have all those rendering and processing that will be taken care completely here 33:30 33 minutes, 30 seconds in India. So this will save the cloud cost and we are estimating for 16 users it can at the moment we do have 60 users 33:39 33 minutes, 39 seconds working in India who are logging into missions in London and for that it would be effectively between 4.5 to 5 of 33:46 33 minutes, 46 seconds savings and as in we be growing there would be more considerable savings as well with more users be adding into this 33:56 33 minutes, 56 seconds so this is 5 cr of saving annually annually annually And likewise if we are adding 100 users 34:05 34 minutes, 5 seconds that would be uh better much more. 34:11 34 minutes, 11 seconds So to add on that what Bala mentioned Mr. Vira and thank you for that question. So as Mr. Bala mentioned it's 34:18 34 minutes, 18 seconds one among the very significant projects what our team is working on for last one quarter and it's reaching to a very advanced. 34:27 34 minutes, 27 seconds So as you know that the cloud usage allow the flexibility to operate from 34:34 34 minutes, 34 seconds anywhere and it helps but it comes at a higher cost and you have a low cost solution on the on which can help you cost saving but it comes with a 34:43 34 minutes, 43 seconds constant. So team has come up with a very brilliant idea how we can balance the boat so it do not impact the 34:50 34 minutes, 50 seconds expendability globally but it optimize the cost. So the number mentioned that 34:57 34 minutes, 57 seconds is for already identified migration and it's a continuous process to continue to 35:03 35 minutes, 3 seconds work and uh as per our estimate it has a potential to increase from 5C cr 35:11 35 minutes, 11 seconds annually to the 15 CR as we increase the headcount. So we have already identified the areas where the bala mentioned the 35:20 35 minutes, 20 seconds number approximately to be the sides here and we are working on the others as it expand as the more offshuring happen 35:27 35 minutes, 27 seconds it can bloom as high as a 15 cr and which is kind of you can understand 1% to the 3% of uh one and a half to the uh 35:36 35 minutes, 36 seconds 3 and a half% of our topline revenue uplift into the pack percentage. 35:42 35 minutes, 42 seconds Understood. And when you say this 5 cr going to 15 cr is it driven by arbitrage on the headcount or is it driven by cost 35:52 35 minutes, 52 seconds of services like cloud costs etc that are being managed uh better. I'm not clear about that piece. 36:00 36 minutes So it's a combination of the both as more and more users we migrate it has 36:07 36 minutes, 7 seconds then the second part is what part we can do on print from the others. So it has different different uh uh parameter and 36:15 36 minutes, 15 seconds different things what we can. So it's a combination of the both even if for the same I increase the user it replicate the same saving for the bigger count and 36:24 36 minutes, 24 seconds as I expand the scope to cover the more areas that way also it will give the benefit for both existing as well as the new user. 36:33 36 minutes, 33 seconds Understood. Uh another question I had is there's a 14 cr jump in employees cost between roughly 14 crores between 36:41 36 minutes, 41 seconds September to December quarter and you mentioned I'm assuming this is largely employees uh you know the the four senior employees Adrian wit etc that 36:50 36 minutes, 50 seconds have been hired uh plus maybe bulking up team in India with the MEC uh employees coming on board um is now all hiring 37:00 37 minutes complete within the ecosystem India plus overseas to deliver six to 800 crores of topline in the next year or two. 37:08 37 minutes, 8 seconds Shall I take up that question Baba? 37:11 37 minutes, 11 seconds Sure. So two parts to this Mr. V. First I will take up that the employee cost increase. So I believe you're referring 37:18 37 minutes, 18 seconds to the current quarter versus the last quarter where in absolutely at console. Yeah. 37:27 37 minutes, 27 seconds So I would say that you should look at it from the two perspective. If you see the revenue of the respective period, revenue itself has increased from the 37:35 37 minutes, 35 seconds 93.4 cr to 105 cr. It's not the same revenue. Correct? 37:41 37 minutes, 41 seconds We should the employee as a percentage of the revenue. So in fact our employee ratio as a percentage of the revenue has 37:49 37 minutes, 49 seconds improved from previous period of 69.7% to the 66.3%. 37:56 37 minutes, 56 seconds A significant 3% reduction at a overall level. So and that's coming from the offshoring. So while the absolute number 38:05 38 minutes, 5 seconds may increase but the percentage is continuously coming down as we do more offshuring and we do the cost 38:12 38 minutes, 12 seconds optimization and um uh uh important to call out that the current year employee 38:19 38 minutes, 19 seconds benefit include the seance cost and the employee appraisal I mentioned in the earlier remarks. Even after absorbing 38:28 38 minutes, 28 seconds this there is a benefit of the 3% otherwise the benefit is even bigger and larger. 38:33 38 minutes, 33 seconds Understood. How large is the severance out of UK? 38:38 38 minutes, 38 seconds Uh it's hard to say the number but it's sizable. exercisable as I said that all the initiative which have been taken new 38:46 38 minutes, 46 seconds and which were not in the corresponding period it amounts in the range of two and a half to the 3% on our uh uh as a 38:55 38 minutes, 55 seconds percentage of the revenue it's quite a sizable understood understood sorry you were saying no thank you and coming back to your 39:04 39 minutes, 4 seconds other question that whether with the current workforce we are set with all the hiring are we equipped to deliver 39:12 39 minutes, 12 seconds the targeted number. The answer is uh the all new hiring we talk about it is 39:19 39 minutes, 19 seconds not going more towards the operation people to deliver but it is happening more towards the business development 39:27 39 minutes, 27 seconds leadership which help in building the sales funnel and the leader into the operation who drives this all the 39:34 39 minutes, 34 seconds initiative. As far as that the delivery people is concerned, you can see that the last quarter versus this quarter we 39:42 39 minutes, 42 seconds mentioned that there is a 58 headcount increase. This is entirely happening into the offshore. If you see the onsite 39:50 39 minutes, 50 seconds there is a gradual reduction as a part of the cidance as well as a part of the offshoring as permissible within the 39:58 39 minutes, 58 seconds legal framework. So that the shift happens but not overall overall wherever it is in more increasing from the offshoring location. 40:07 40 minutes, 7 seconds Understood. So if I may just paraphrase please to fully understand. So you're saying about 58 employees added largely for offshoring delivery centers and the 40:15 40 minutes, 15 seconds bulk of the hiring in terms of dollars or rupees has been for BD functions. 40:22 40 minutes, 22 seconds Absolutely right. True. which is front- end positions in LA, US, UK etc. 40:29 40 minutes, 29 seconds Absolutely that the in the new geographies as well as in our existing geographies all the creative director 40:37 40 minutes, 37 seconds business development who talks to the production houses who has the networking to up build the sales funnel 40:43 40 minutes, 43 seconds to add to what we are investing more on high level VFX supervisors and executive 40:50 40 minutes, 50 seconds producers who would be bringing in more business opportunities in the overseas location and likewise we are adding more uh efficient and profic efficient 40:59 40 minutes, 59 seconds artists here in India would be more appropriate for execution and the operational capabilities from India. So that is where our focus. 41:09 41 minutes, 9 seconds Understood. Uh can I ask some more questions or should I get back in queue? 41:17 41 minutes, 17 seconds Okay, I'll carry on. Um you know the status on age receivables that is still not something Mr. Nera that is uh coming 41:26 41 minutes, 26 seconds fully under control. You know this is stretching on now for almost a year and a half if not longer 503 crores down to 41:34 41 minutes, 34 seconds some 45 crores. What are we doing to proactively collect this? Because now the industry is in revival mode. The end 41:41 41 minutes, 41 seconds clients have projects they have cash flow. Why are they not repaying and what is really happening there? 41:48 41 minutes, 48 seconds So there is a cycle that's very fair question Mr. Vira. 41:53 41 minutes, 53 seconds uh but there is this cycle if you look out that how the revival is happening as I mentioned that revival largely started 42:01 42 minutes, 1 second in the start of this financial year and when I say the revival hap started that revival is start from the production so 42:09 42 minutes, 9 seconds there is a cycle of the production then there is a cycle of the BFX work to be done once the work is being done then there is a inviting process there is a 42:17 42 minutes, 17 seconds collection process and because likewise it was with wherein it was some aged receivable even 42:26 42 minutes, 26 seconds the foreign schools does have some gaps in their working capital. So it's a combination of the both they are giving 42:33 42 minutes, 33 seconds their own needs as well as paid to us in parallel there being some determent to the earlier commitment which was 42:42 42 minutes, 42 seconds committed for the last quarter only to the December we know large part was the people were not available in the 42:48 42 minutes, 48 seconds European and all we do but uh having said that I would like to take your attention that there is a significant 9% 42:56 42 minutes, 56 seconds uh close to 9 to 10% recovery which has happened which is a sizable number to the aged ones. Now we are pushing it 43:04 43 minutes, 4 seconds more. We have the more commitment as you raise the concern. We have also raised a concern and we are expecting larger 43:12 43 minutes, 12 seconds parts to come in the current quarter and the following quarter. It's going to take some time may not be very immediate 43:19 43 minutes, 19 seconds but I think in the next two quarter it should uh address uh good amount of the 43:25 43 minutes, 25 seconds uh collection over those while the current collection remains uh at uh track 43:33 43 minutes, 33 seconds do any of these aid thank you Vir I request you to join back the queue please as we have participants waiting for their thank you 43:41 43 minutes, 41 seconds next question is from the line of Surendra Reddi from Chartered investors Please go ahead. 43:48 43 minutes, 48 seconds Can you hear me? Yes, please go ahead. 43:52 43 minutes, 52 seconds Yeah, sir. Actually, I can see that our current quarterly run rate is going like 100 100 crores and can we see like any jump in that? 44:05 44 minutes, 5 seconds Yeah, absolutely. So uh as I said uh that generally if you see the trend and 44:12 44 minutes, 12 seconds I will take your attention how the our trend is the mostly the Q4 quarter is 44:20 44 minutes, 20 seconds better. Having said that there will always be ups always be down. So we expect the quarter at least at the par 44:28 44 minutes, 28 seconds or slightly better than the current run rate which will cover up that uh with the higher winning happen in this 44:37 44 minutes, 37 seconds current financial year. We mentioned that we got a winning new winning of greater than 300 cr which is really 44:44 44 minutes, 44 seconds helping us to move the number to the upward trajectory as we enter into the next financial year in the Q1 and so we 44:53 44 minutes, 53 seconds do uh uh expect the numbers to improve as the winnings continue to happen. 45:02 45 minutes, 2 seconds There have been some deferment in the like to call out there have been some deferment to the project which was scheduled by December from the 45:10 45 minutes, 10 seconds production houses but that's part and parcel of the our uh module and mod uh 45:18 45 minutes, 18 seconds work model there will always be some pluses there will always be some minuses it's hard to predict any trend because we are not into the IT where there's a 45:26 45 minutes, 26 seconds standard monthly billing it's depends upon the production schedule depends upon the Shoot a lot of things happen but on an long run basis definitely we 45:36 45 minutes, 36 seconds expect the growth momentum to continue as the company has delivered over last last few years. 45:44 45 minutes, 44 seconds Yeah got it you sir. Thank you. One followup question on that sir. Uh like I believe that we are working as a subcontractor level. So is there any 45:52 45 minutes, 52 seconds scaling up to contractor and like doing like major part of the value chain instead of like small talk 46:01 46 minutes, 1 second if you take the last two to three years our we are or 85 to 90% of the work is direct work and only 10 uh percentage 10 46:11 46 minutes, 11 seconds to 15% would be of subcontract and in that regard uh we right from preualization to final delivery we are 46:19 46 minutes, 19 seconds very much in the full uh we have been delivering the full VFX work for every other project which we've 46:27 46 minutes, 27 seconds been working on right for the major networks like Netflix, Amazon, one of the others. If you take any major network, we are participating in all 46:34 46 minutes, 34 seconds those highend projects which have been produced by production. 46:40 46 minutes, 40 seconds Yeah, got it sir. Got it. Thank you. Uh one last question uh like uh we have a employee base of 46:49 46 minutes, 49 seconds 750. So like may you know how many people are working under 3D 3D side 47:00 47 minutes I would say like uh 65% would be on 3D side and uh likewise remaining 35%age 47:07 47 minutes, 7 seconds will be 2D. So it's more of a CGA uh team and uh lighting. 47:14 47 minutes, 14 seconds Yeah. Thank you. Thank you very much sir. All the best for the future. Sure. Thank you sir. 47:21 47 minutes, 21 seconds Thank you. We'll take our next question from the line of Prana JN from Deal Wealth Capital. Please go ahead. 47:29 47 minutes, 29 seconds Hi. Am I audible? Yes, please go ahead. 47:35 47 minutes, 35 seconds Uh so with all the strategic initiatives that we've taken and the visibility that we have on the winds and the pipelines 47:43 47 minutes, 43 seconds uh can you please share what is the planned uh revenue and uh EATA or PAT margin for FI27 that we are working 47:51 47 minutes, 51 seconds towards a realistic uh range. I know that we may overshoot also uh if things get even better but what is the planned 48:00 48 minutes revenue and EITA at margin that we have for FI27? 48:05 48 minutes, 5 seconds So Mr. Pre we generally do this budgeting exercise in the start of the financial year. So we will be more going 48:13 48 minutes, 13 seconds into the detail for the next financial year as we close the March to give the better uh guidance around the number but 48:24 48 minutes, 24 seconds on an average uh I think our CGR is in the range of the 25 to 30% CAGR on the 48:31 48 minutes, 31 seconds top line and our margin continuously improving gradually which is part and parcel of our offshoring uh strategy as 48:40 48 minutes, 40 seconds well as the different costing initiative being taken. So I think we should maintain that CAGR and with the new 48:49 48 minutes, 49 seconds resources onboarded into the business development which is a significant investment management has taken the 48:56 48 minutes, 56 seconds initiative for that should really help to take up the number to the next trajectory. We are building currently to 49:06 49 minutes, 6 seconds the volumes and the levels which are far ahead that what we used to do that's a contribution of the new business 49:15 49 minutes, 15 seconds development team has joined as well as the industry revival. So we are quite optimistic maybe we will share the 49:21 49 minutes, 21 seconds balance and we do the next year uh budgeting exercise. 49:28 49 minutes, 28 seconds Mr. we are just 5 6 weeks away from the closure of the financial year. I'm not looking for an exact number that you're 49:35 49 minutes, 35 seconds aiming. Uh we have a reasonable understanding. In any case, you have indicated 25% kind of kagger on the revenue should at least be expected. So 49:44 49 minutes, 44 seconds I I uh will look forward to that. But what can you indicate on on the margin any range that uh we can look forward to 49:52 49 minutes, 52 seconds because only optimistic commentary does not help. Hope is not a strategy over here for investors. 49:57 49 minutes, 57 seconds No, it's not a strategy but as I said that uh in a range we always target in a 50:05 50 minutes, 5 seconds year advantage of about uh I would say say close to one and a half to 2% uh 50:13 50 minutes, 13 seconds that improving the margin and it's a combination of the multiple factor as you well understand that cost 50:20 50 minutes, 20 seconds optimization the pace the things happen so we internally target into the marginal improvement in a range of one 50:28 50 minutes, 28 seconds and a half to 2%. As I said while it is a six month six weeks away I didn't mean that we will be able to close it by the 50:35 50 minutes, 35 seconds April it goes in the round. So probably once we come for that the May call then we will be doing the annually definitely we will share more insight towards that 50:44 50 minutes, 44 seconds but as you rightly picked up the topline uh CAGR in the range of 45 and kind of a margin in the range of one and a half to 50:53 50 minutes, 53 seconds 2% uh improvement year over year right and last question uh what is the 51:01 51 minutes, 1 second slate of uh uh projects uh to be delivered in the next uh 3 to 6 months 51:08 51 minutes, 8 seconds uh which we can uh look forward to hitting the screen. Any color you can give on that? 51:15 51 minutes, 15 seconds Uh there are again we've recently worked on picture season 5 which is again being currently being streamed in Netflix and 51:24 51 minutes, 24 seconds we've been working on there will be upcoming episodes are coming on Netflix and likewise we recently worked on Mission Impossible which was released 51:32 51 minutes, 32 seconds quite recently as well and there are upcoming Disney movie which is working which we are working on which is a big 51:40 51 minutes, 40 seconds Disney franchise movie list uh which will be able to name because the movie set to be released. So, so that is the one movie that we've been working on. 51:49 51 minutes, 49 seconds Sorry that you're not allowed to name the movie before it is released. 51:55 51 minutes, 55 seconds But we are working on some of TV series for water brothers at this 52:03 52 minutes, 3 seconds point and that is again one of the that could be one of potentially a biggest project for water in the last 20 years. 52:11 52 minutes, 11 seconds So that is the kind of project which we are working on and likewise apart from that we are also working on 52:18 52 minutes, 18 seconds the big so these big uh production houses that 52:26 52 minutes, 26 seconds you just mentioned uh are we strained on the receivables front uh from their side 52:32 52 minutes, 32 seconds or uh is it some other older production houses and partners who are yet to pay us? 52:39 52 minutes, 39 seconds I will take up that question. So as you rightly anticipated that the aged receivables are not from the premium 52:47 52 minutes, 47 seconds production houses. The aged receivables are more for the India business wherein we get the subcont subcontracted 52:55 52 minutes, 55 seconds business from the studios the our foreign which get the uh direct 53:02 53 minutes, 2 seconds contract with the production also such like Netflix Disney and all it's well in that. So if you see that last year we 53:09 53 minutes, 9 seconds collected 240 cr this year also we have collected significant amount which are all on the track and in the grid it's not only with us it's industry pileup 53:18 53 minutes, 18 seconds and probably that foreign studios take time as you mentioned they need to have some money for their own working capital 53:25 53 minutes, 25 seconds and gradually paying and as the demand is up for everyone they are also recruiting the people they are also uh 53:33 53 minutes, 33 seconds increasing their working capital cycle so it's a cycle across but it's more pertains to the studios to answer your question not to those production houses. 53:44 53 minutes, 44 seconds Thank you for giving that seller and all the very best to you. Thank you. Thank you. 53:49 53 minutes, 49 seconds Ladies and gentlemen, in order to ensure management is able to answer queries from all participants, kindly restrict your questions to two at a time. We'll 53:57 53 minutes, 57 seconds take our next question from the line of Prrenit and individual investor. Please go ahead. Go ahead. 54:03 54 minutes, 3 seconds Uh hi, thank you for the opportunity. So I wanted to understand in terms of I understand the legacy receivables are going to happen sooner or later. I was 54:10 54 minutes, 10 seconds trying to understand when we took over one of us we planned on renegotiating also few of the payment terms. So we get might get it a little earlier. So how are we in that journey at this point? 54:22 54 minutes, 22 seconds I will take up that question. So as I mentioned that the receivables are pertaining more to the India business 54:29 54 minutes, 29 seconds than the one of related. So because it's with the major studios it's not from the 54:35 54 minutes, 35 seconds one of us and like that I understand that but I'm curious about the international payment terms on how 54:42 54 minutes, 42 seconds are they changing after we took over because there was some efficiency we thought we could get from that particular domain right in terms of working capital I was just trying to 54:50 54 minutes, 50 seconds understand how are we on that journey in terms of reducing receivable days or payment terms I'm just curious about that I think that's pretty much on the track 54:58 54 minutes, 58 seconds so as I said that those production houses many time we get the sizable signing amount. So those are pretty much 55:06 55 minutes, 6 seconds on the track to answer you that's where our international credit terms lies. So it's in the 55:13 55 minutes, 13 seconds standard of the 30 days and generally we get the payment division cycle of the 30 max to max 45 days. So those are all on 55:20 55 minutes, 20 seconds the track even for the India if you see that our current collections are all on the track. like the older one which is 55:28 55 minutes, 28 seconds coming back in the staggered manner. Uh on the payment term perspective for the India also we have the payment on 30 to 55:35 55 minutes, 35 seconds 45 days. Uh but it does take a cycle of close to 90 days to receive the money considering the work been done approvals 55:44 55 minutes, 44 seconds and all the process. So there's a some cycle gap from the India business versus the overseas business. We are talking to 55:51 55 minutes, 51 seconds them to do and they are happy to support the all the current receivables on the time and age one in the staggered manner 55:59 55 minutes, 59 seconds as understood. Uh so just the reason I'm reinforcing is just to understand the progress on what happened from the 56:06 56 minutes, 6 seconds international was it higher than 45 days before we took over or what was the time then and now it has become 30 to 45 is what is that progress right now? 56:17 56 minutes, 17 seconds uh it was a little bit stretched at that time but that's a long back because we uh uh got integrated way back in the 56:25 56 minutes, 25 seconds July 2024 so it's kind of a uh it's been a long period for those things to get 56:33 56 minutes, 33 seconds settled by now so those all the things are over yeah at the time when we acquired there was a a few cases where 56:41 56 minutes, 41 seconds it was a stretch which is now on the routine understood got it and in terms Uh Mr. Pran, I request you to join back the queue, please. 56:50 56 minutes, 50 seconds Thank you. Thank you. 56:52 56 minutes, 52 seconds Next question is from the line of Janel and individual investor. Please go ahead. 57:00 57 minutes Hi, am I audible? Yes, please go ahead. 57:03 57 minutes, 3 seconds Yeah. So, I had a question like what is the onetime cost of the quarter and can I get the breakup for the same also about the cost? 57:13 57 minutes, 13 seconds So, I will take up that question. So it's hard to provide that's not the public information available for the break up but I have given you the 57:20 57 minutes, 20 seconds guidance that all the initiatives put together it ranges in the range of the 2 and 1 half to 3% in terms of the impact in the bank. 57:31 57 minutes, 31 seconds Okay but so for with the numbers you cannot provide us with the breakup like with the lying that's not a public information. 57:42 57 minutes, 42 seconds Okay. Thank you. 57:44 57 minutes, 44 seconds Thank you. Thank you. Next question is from the line of Pankage, an individual investor. Please go ahead. Hi, good afternoon. Am I audible? 57:53 57 minutes, 53 seconds Yes, please go ahead. 57:54 57 minutes, 54 seconds Okay. I have a quick question. U continuing the discussion we had on receivables. Can we get a breakup of uh what is the aging of receivables? I'm 58:01 58 minutes, 1 second more interested in uh any amounts which are due for more than 6 months and uh out of that uh is there anything which 58:09 58 minutes, 9 seconds we are expecting to be kind of written off over a period of time? That's question number one. Question number two is uh regarding the operating margin dip 58:17 58 minutes, 17 seconds we are seeing in Q2 to Q3. So we understood uh the manpower changes which you kind of just highlighted. Is there 58:25 58 minutes, 25 seconds anything beyond that also in in in terms of reduction of those parts? 58:31 58 minutes, 31 seconds Sure. So maybe I will answer the last part first before I go to the receivable. So it's not limited to the 58:38 58 minutes, 38 seconds investment as I said that there was a sizable number from the moving from the IgAP to the NDS being with the main 58:46 58 minutes, 46 seconds board compliances. So that has also been impacted to a sizable percentage and uh other than that as I said that apart 58:54 58 minutes, 54 seconds from investing into the uh new individual we have given the appraisal after the two years. So there have been 59:01 59 minutes, 1 second some impact from that and also we have uh uh kind of a uh those are the major 59:09 59 minutes, 9 seconds one which is uh impacting all put together. Uh this has been partially offcompensated as well. So means I'd 59:16 59 minutes, 16 seconds like to take your attention that the cost initiative what we are trying that is also partially offsetting this but uh 59:23 59 minutes, 23 seconds probably the impact of the severance impact of this may be the larger because this initiative we started in the Q2 and 59:32 59 minutes, 32 seconds as you know there is a process of a legal uh notice period and the cost hit at a later part. Uh and the cost saving 59:40 59 minutes, 40 seconds what we are talking about those are just been started so more benefit to come in the current quarter. So there is a timing gap to that. Uh coming to your 59:48 59 minutes, 48 seconds question on that the receivable part. So maybe I will say like that. So receivable it belongs to the our 59:58 59 minutes, 58 seconds existing customer and it belongs to the customer which is still continue the work. We are still doing the regular work. It do not pertain to any single 1:00:07 1 hour, 7 seconds customer. It pertain to close to 7 to eight customer who are with us for more than six to eight year and as we said 1:00:16 1 hour, 16 seconds their work continue even now uh uh coming to that whether there is any sort of the bad depths we don't foresee at 1:00:23 1 hour, 23 seconds this point of the time there happen one instance for a smaller value they back into the Q2 which has been provisioned 1:00:33 1 hour, 33 seconds 100% which has been part of the published financials But at this point of the time the other than that there is 1:00:40 1 hour, 40 seconds no indicator indicating any such sort of the news. 1:00:45 1 hour, 45 seconds Got can we get a number for what is the amount which is outstanding for more than 6 months. 1:00:51 1 hour, 51 seconds Uh and you know that the for the quarter that is the unpublished information once you come for the March definitely we will be happy to detail that. 1:01:00 1 hour, 1 minute Okay. Thank you. 1:01:03 1 hour, 1 minute, 3 seconds Next question is from the line of sit and individual investors. Please go ahead. 1:01:08 1 hour, 1 minute, 8 seconds Yeah, thank you so much for the followup. Uh, so I was trying to so I I see that our India operation has gone through a huge bump up. So I was just 1:01:15 1 hour, 1 minute, 15 seconds trying to understand how much of the new business was from our resourcing from our international division versus how 1:01:22 1 hour, 1 minute, 22 seconds much was new or net new or uh audit relations. 1:01:30 1 hour, 1 minute, 30 seconds So uh I think it's a mix of both as I said that after the industry revival we are getting the volume spike up from the 1:01:39 1 hour, 1 minute, 39 seconds existing customer as well as uh we mentioned that we onboarded 12 new customer including the 52 happily 1:01:46 1 hour, 1 minute, 46 seconds serving customer. So it's a mix of both the new as well as uh the existing one. 1:01:51 1 hour, 1 minute, 51 seconds To give you a flavor, the new one should be contributing in a range of the 15 to 20% in total. 1:02:01 1 hour, 2 minutes, 1 second So 50 to 20% of the growth or 15 to 20% of the overall living I'm saying growth. 1:02:08 1 hour, 2 minutes, 8 seconds Okay. So about four understood. Got it. 1:02:11 1 hour, 2 minutes, 11 seconds So and in terms of the resourcing capability did we reach our peak in terms of what we wanted to resource as a percentage of value of work or is there 1:02:20 1 hour, 2 minutes, 20 seconds more scope to go forward scope to go grow forward and as in we've 1:02:27 1 hour, 2 minutes, 27 seconds been recruiting more artists in India as well as in for Chennai as well as for Bangalore and as in we mentioned about 1:02:35 1 hour, 2 minutes, 35 seconds the hybrid solution which we are integrating into system currently we have 60 uses and uh we've been waiting to integrate completely. So that way 1:02:43 1 hour, 2 minutes, 43 seconds from 60 we are looking to grow that to 150 in Bangalore and equates in Chennai and Pune as well we will have similar 1:02:50 1 hour, 2 minutes, 50 seconds growth as well over a period of time and likewise to add to what Dor mentioned about the new projects in India and 1:02:57 1 hour, 2 minutes, 57 seconds apart from traditional film and TV project which we've been delivering for clients we have also started a new initiative where we've been delivering 1:03:05 1 hour, 3 minutes, 5 seconds production ready project which is completely generated out of air and commercials and ads where we've been delivering for clients for commercials 1:03:14 1 hour, 3 minutes, 14 seconds which where we don't have much of a copyright issue and that is why we've been using this is more of a hybrid of AI and BFX where we've been delivering 1:03:24 1 hour, 3 minutes, 24 seconds product based commercials to clients as well so which is again really so 1:03:32 1 hour, 3 minutes, 32 seconds thank you Prrenit I request you to join back please yeah sure thank you thank you next question is from the line of prana Jen from Deal Wealth Capital. 1:03:42 1 hour, 3 minutes, 42 seconds Please go ahead. 1:03:45 1 hour, 3 minutes, 45 seconds Uh I wanted to understand the funds that we have raised uh this year. What is the utilization uh year mark across key 1:03:53 1 hour, 3 minutes, 53 seconds categories and by when we will be infusing it and by when do you think it'll start uh reflecting into the numbers the results that we want? 1:04:06 1 hour, 4 minutes, 6 seconds So uh as I mentioned that uh out of the total fund raise in an overall we have 1:04:14 1 hour, 4 minutes, 14 seconds utilized close to 48% odd number and the larger part remain unutilized relates to 1:04:21 1 hour, 4 minutes, 21 seconds that the inorganic growth opportunity we are where we are progressing at advanc 1:04:27 1 hour, 4 minutes, 27 seconds stage of discussing the alloy and uh that's how the utilization looks Right. 1:04:36 1 hour, 4 minutes, 36 seconds What is this inorganic opportunity or the the new growth areas that we are looking at? Is it in terms of 1:04:43 1 hour, 4 minutes, 43 seconds capability? Is it geography? Is it client side? Uh how are we looking at this uh for this new acquisition? We are 1:04:51 1 hour, 4 minutes, 51 seconds looking more at a North American market and likewise currently we are fully covered for traditional VSX and what 1:04:59 1 hour, 4 minutes, 59 seconds we've been also looking at to cover more into experience market. Experience is what we do see again as a divers as well 1:05:07 1 hour, 5 minutes, 7 seconds as market as well and on top of that experience from commercial market. 1:05:22 1 hour, 5 minutes, 22 seconds How comparable would their unit economics be compared to uh ours? Is it similar? Is it uh better? 1:05:33 1 hour, 5 minutes, 33 seconds uh please so quite on the size maybe I can take up that question so I 1:05:41 1 hour, 5 minutes, 41 seconds think in in kind of the revenue they may be of the size that we did the last acquisition kind of a 200 to 300 million 1:05:49 1 hour, 5 minutes, 49 seconds so there are different prospects what we are evaluating at at this point of the time few are of the larger size few are 1:05:56 1 hour, 5 minutes, 56 seconds of the smaller size so as I said we are in a stage of ado once it gets finalized we will be happy to share more details investor. 1:06:06 1 hour, 6 minutes, 6 seconds Thank you. 1:06:06 1 hour, 6 minutes, 6 seconds Okay, we'll take our next question from the line of Vishal from Smart Horizon Opportunity Fund. Please go ahead. 1:06:14 1 hour, 6 minutes, 14 seconds Hello. Hi. Am I audible to you? Yes. 1:06:17 1 hour, 6 minutes, 17 seconds Hello. Yeah. Hi sir. Uh one question for the one of us limited acquisition which 1:06:24 1 hour, 6 minutes, 24 seconds were acquired for the expand the global system. How quickly we are seeing the actual crossell revenue from this acquisition. Can you please quantify the 1:06:33 1 hour, 6 minutes, 33 seconds contribution from one of the question? May you change it please? 1:06:45 1 hour, 6 minutes, 45 seconds Can you use the handset mode please? Just a ma'am. Sure. 1:06:53 1 hour, 6 minutes, 53 seconds Hello ma'am. Hello. Yes. Go ahead. 1:06:58 1 hour, 6 minutes, 58 seconds The question is uh you acquired acquisition for the one of us limited to expand global footprint. So how quickly we are seeing the actual crossell 1:07:06 1 hour, 7 minutes, 6 seconds revenue from this acquisition. Can you please quantify the contribution from this acquisition in FI26? 1:07:13 1 hour, 7 minutes, 13 seconds It's a very significant uh to detail you and in fact it's important to share that 1:07:20 1 hour, 7 minutes, 20 seconds this acquisition they were our customer even before acquisition. So it's a wellknown 1:07:27 1 hour, 7 minutes, 27 seconds uh uh well-known culture and a well-known uh knowing the entity each other. Uh there is a significant 1:07:35 1 hour, 7 minutes, 35 seconds increase into the offshoring business to talk about the crosses. It's also helping that whomsoever we know they are 1:07:44 1 hour, 7 minutes, 44 seconds directly in the contact of the production houses we are getting the other source of the work to give you the flavor of it. I would say the 1:07:53 1 hour, 7 minutes, 53 seconds cross-selling at this point of the time will be in the range of 8 to 10%. 1:07:58 1 hour, 7 minutes, 58 seconds Uh kind of a range but the more benefit of the cross-selling is coming from the uh offsharing because before acquisition 1:08:06 1 hour, 8 minutes, 6 seconds we were one of the vendor for them for offshuring now it's ex exclusively with us and the offshoring is at a different 1:08:13 1 hour, 8 minutes, 13 seconds level as we mentioned we are opening the banguru branch and it's uh uh going in a very fast-paced manner. So this all 1:08:21 1 hour, 8 minutes, 21 seconds opportunities are coming in my mind as a part of the integration and collaboration opportunity. 1:08:30 1 hour, 8 minutes, 30 seconds Okay. 1:08:33 1 hour, 8 minutes, 33 seconds Thank you ladies and gentlemen. We'll take that as the last question for today. I would now like to hand the conference back to management for closing comments. Over to you sir. 1:08:47 1 hour, 8 minutes, 47 seconds Uh thank you so much. Thank you everyone for joining the call and uh we really appreciate your time and if you do have 1:08:53 1 hour, 8 minutes, 53 seconds any queries please do forward it to PRC we would be happy to answer any questions that may come to us. Thank you so much for all. 1:09:02 1 hour, 9 minutes, 2 seconds Thank you members of the management team. On behalf of Basilic Fly Studio Limited that concludes this conference. 1:09:08 1 hour, 9 minutes, 8 seconds Thank you for joining us and you may now disconnect your lines. Thanks everyone. Okay.