C.E. Info Systems Limited — Q1 FY26

CE Info Systems Ltd Q1 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Q0IsjQzFvsc Published: 8 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to CE Infosys Map My India Q1 FI26 earnings call. As a reminder, all 0:10 10 seconds participant lines will be in listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need 0:18 18 seconds assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:25 25 seconds Please note that this conference is being recorded. I now hand the conference over to Mr. Singhal from Anandraati Share and Stock Brokers Limited. Thank you and over to you sir. 0:35 35 seconds Uh good evening everyone. Uh on behalf of Anandraati Institutional Equities uh we welcome you all to Q1 FI26 conference 0:43 43 seconds call of MACMA India. Uh we have with us today Mr. Rakkesh WMA co-founder and chairman of the company. Uh Mr. Rohan 0:51 51 seconds WMA MD Mapples DT Private Limited and G Trophy System Private Limited which are subject 0:59 59 seconds Mr. Anu Jan CFO and Mr. Sani company secretary and compliance officer I will now hand over the call to Mr. Rakkesh 1:06 1 minute, 6 seconds WHA for his opening remarks. Uh first that we will start with Q&A question. 1:12 1 minute, 12 seconds Uh thank you so uh good good evening everybody. 1:20 1 minute, 20 seconds Let me start saying that MAPIA has started FY26 on a strong footing delivering robust 1:28 1 minute, 28 seconds financial performance across all key metrics in Q1. 1:34 1 minute, 34 seconds For Q1 FY26 year on year the revenue grew by 19.8% 1:41 1 minute, 41 seconds to 121.6 cr while IBITA rose by 30.6% 1:48 1 minute, 48 seconds to 55.9 cr and PAT increased by 27.7% 1:55 1 minute, 55 seconds to 45.8 cr. In Q1 FY26 ITA margin was 46.0 0% and pack margin was 33.9%. 2:09 2 minutes, 9 seconds Underscoring the strength of our business model and operational efficiency, our mapled business remained key growth 2:18 2 minutes, 18 seconds engine delivering a strong 26% year-on-year growth with IoT business is 2:27 2 minutes, 27 seconds increasing uh sorry uh with uh margin of 54.8% 8% as against 50.1% in Q1 FY25. 2:40 2 minutes, 40 seconds The company believing in long-term prospects of its IoT business is increasing its shareholding in its IoT 2:48 2 minutes, 48 seconds subsidiary Drop Systems Private Limited from 75.98% to 96.0%. 2:59 2 minutes, 59 seconds Maples GT Private Limited, a wholly owned subsidiary, has been fully operationalized to serve the large and 3:07 3 minutes, 7 seconds fast growing digital transformation and digital twin needs of the government and defense sector. 3:16 3 minutes, 16 seconds From an industry lens, our automotive and mobility checkm revenue grew 24.4% 3:24 3 minutes, 24 seconds 4% yearonear supported by growing demand for our advanced automotive solutions. The 3:32 3 minutes, 32 seconds consumer tech and enterprise digital transformation CE segment also performed 3:38 3 minutes, 38 seconds well registering a 16.1% yearon-year increase. We made meaningful 3:46 3 minutes, 46 seconds progress in both customer acquisitions and deepening engagements with existing 3:53 3 minutes, 53 seconds clients through upsell and cross-ell of innovative solutions. Notable wins and 4:00 4 minutes go live spann across automotive OEMs, fleet operators, technology startups, 4:08 4 minutes, 8 seconds traditional enterprises and various government departments including defense 4:14 4 minutes, 14 seconds with our focus on live highdefinition maps which is called HD maps going 4:22 4 minutes, 22 seconds beyond 2D and 3D standard definition maps. We have developed use cases for 4:29 4 minutes, 29 seconds autonomous driving and lane level navigation experience. In August 2025, 4:39 4 minutes, 39 seconds we entered into a strategic business agreement with Zapto, a leading quick 4:46 4 minutes, 46 seconds commerce company where Maindia SDK and APIs are will be utilized to enhance their customer and delivery experience. 4:57 4 minutes, 57 seconds Additionally, the board has approved on August 7, 2025 a strategic financial investment of 25 cr rupees in Zeppto. 5:08 5 minutes, 8 seconds This investment will enhance the capabilities and adoption of our suite of solutions for the large and fast growing quick commerce industry. 5:19 5 minutes, 19 seconds Mapmania continues to work with and enable all players in this sector. 5:26 5 minutes, 26 seconds Looking ahead, we are confident about the opportunities that lie ahead to 5:33 5 minutes, 33 seconds achieve our revenue goal of 1,000 cr in FY28. 5:39 5 minutes, 39 seconds The strong performance in Q1 reinforces in the scalability and sustainability of 5:46 5 minutes, 46 seconds our strategy. At the same time, we would like to communicate that the nature of this business is such that it should be 5:55 5 minutes, 55 seconds observed more on a yearly basis rather than quarter on quarter. 6:02 6 minutes, 2 seconds And with this I conclude my opening remarks and would leave it to the participants to ask any questions. I 6:11 6 minutes, 11 seconds have with me Rohan WHMA who would be also uh who be able to answer answer any of your queries related to his area. 6:20 6 minutes, 20 seconds Thank you very much. 6:23 6 minutes, 23 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on their touchstone 6:32 6 minutes, 32 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. 6:42 6 minutes, 42 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 6:48 6 minutes, 48 seconds The first question is from the line of san from Anendraati. Please go ahead. 6:54 6 minutes, 54 seconds Uh thank you. Uh so congrats on a good performance on Marian. 7:00 7 minutes So my question I have two questions. Uh so first question is on a IoT business. 7:05 7 minutes, 5 seconds So uh last quarter also uh we seen around 4% decline in growth and this 7:12 7 minutes, 12 seconds quarter as well it was largely flat. So how one should achieve a growth trajectory from here on 7:19 7 minutes, 19 seconds uh show this is Rohan here. I'll answer the question on IoT. 7:24 7 minutes, 24 seconds See the the large long-term opportunity on this is quite large. We've talked about it before and most recently in the 7:31 7 minutes, 31 seconds investor day uh that we did about uh 2 months ago. 7:36 7 minutes, 36 seconds We as a company had to take a call on how we want to go about uh addressing this IoT opportunity. 7:44 7 minutes, 44 seconds Um our parent company or the listed company mapia to automotive and corporate world is selling IoT. the 7:52 7 minutes, 52 seconds wholly owned subsidiary Maples DT is selling IoT to the government world and GP is selling uh the other subsidiary is 8:00 8 minutes selling into the transporter and uh corporate logistics ecosystem. So as a entire group we are servicing the IoT uh uh business. 8:13 8 minutes, 13 seconds We figured out that you know one of the ways that we could grow and adjust this IoT opportunity is to increase our 8:20 8 minutes, 20 seconds shareholding in Groy which is 76% currently to to 96 97% right now 96% 8:29 8 minutes, 29 seconds right now with the option and right to acquire balance 4% 100% in the uh coming four years till now the management till 8:38 8 minutes, 38 seconds March at least the management of G trophy was being run by the earlier uh founder We transitioned the management uh last 8:46 8 minutes, 46 seconds quarter, end of last I mean in the beginning of Q1 and so we're going through this transition period uh where 8:54 8 minutes, 54 seconds we are refocusing the business on the way mapia has been doing in the enterprise world which is higher margin 9:02 9 minutes, 2 seconds large enterprises and having certain fiscal prudences in mind. So I would say that this is part of a transition and uh 9:11 9 minutes, 11 seconds over the course of next quarter we'll be both back on growth path as well as increase and profitability as we 9:18 9 minutes, 18 seconds identify certain gaps in in the past we are addressing those and again we'll be on the growth path both on topline and 9:26 9 minutes, 26 seconds bottom line from a gropy and overall IoTled business point of view. 9:32 9 minutes, 32 seconds Understood. And so my second question uh if you can uh share more details on your investment in Zapto and business 9:40 9 minutes, 40 seconds agreement with B like how big opportunity are we envisaging from this sector. 9:47 9 minutes, 47 seconds Uh I'll I'll answer on behalf of Mr. 9:49 9 minutes, 49 seconds Wats Rohan here. uh I think the the company over over the course of last uh 9:57 9 minutes, 57 seconds multiple decades but at least has always found certain sectors which the company has gone deep into. automotive being one 10:06 10 minutes, 6 seconds that the company went deep into since 2007 and building out this entire NK suite of solutions and then getting this 10:14 10 minutes, 14 seconds large area of automotive to adopt those solutions with increasing number of use cases with e-commerce and then and then 10:23 10 minutes, 23 seconds now uh quickcommerce which is a pretty large and fast growing industry. We believe that map India as a group across 10:30 10 minutes, 30 seconds maps, IoT, digital twin, digital transformation are we have a wide gamut of software platforms and solutions which can be applied to this industry. 10:42 10 minutes, 42 seconds Um we we we work with various players in this sector and we'll continue to do so. 10:48 10 minutes, 48 seconds We wanted to work closely uh in a strategic manner with somebody so that we can I would say complete our 10:57 10 minutes, 57 seconds offerings or deepen our offerings for quick commerce and also see the kind of flagship adoption so that customers can 11:06 11 minutes, 6 seconds get the benefit of the entire suite of map solutions. So with that objective um uh you know this investment is being 11:14 11 minutes, 14 seconds made both from a strategic business agreement point of view where in map solutions shall be used by Zeppto but 11:21 11 minutes, 21 seconds also map uh but also investment point of view where uh map suite of solutions will also through the collaboration 11:30 11 minutes, 30 seconds we'll also be able to round out the solution increase the product market fit widen our gamut of solutions for quick 11:36 11 minutes, 36 seconds commerce so that we can service that area or that uh target market in a better way today in India and then of 11:44 11 minutes, 44 seconds course over time uh roll that out internationally also. 11:49 11 minutes, 49 seconds Understood. Uh thank you sir. Uh I will get back in the queue later on. 11:55 11 minutes, 55 seconds Thank you. The next question is from the line of Chandra Muli Mutya from Goldman Shacks. Please go ahead. 12:02 12 minutes, 2 seconds Hi good evening and thank you for taking my questions. Um my first question is just on uh the Zepto agreement. Um so I 12:10 12 minutes, 10 seconds remember we had announced about 233 crores of um e-commerce related business order win on the 1st of July. So just 12:19 12 minutes, 19 seconds wanted to confirm if this Zepto business award/aggreement um is is is the same as that one or if it is incremental to to that one. 12:30 12 minutes, 30 seconds No no I think uh probably for lack of information you are mixing up the two that 233 crores uh had nothing to do 12:39 12 minutes, 39 seconds with webto it's a different customer and we talked about an e-commerce company at that time also 12:48 12 minutes, 48 seconds got it got it so this this new potential business relationship with is is uh independent of that business award 12:55 12 minutes, 55 seconds yeah see as Rohan said like for in the last 15 years we went deep dive into 13:03 13 minutes, 3 seconds automotive sector. Now we believe that e-commerce, quick commerce and allied 13:09 13 minutes, 9 seconds businesses with logistics also play a role. Somehow we need to go deep dive. 13:16 13 minutes, 16 seconds What happens is when you work with a customer closely at least one customer like I can tell you about automotive. 13:22 13 minutes, 22 seconds The first customer we worked closely with was uh BMW and we learned a lot of things and then it helped us move to almost all the automotive companies. 13:33 13 minutes, 33 seconds Here also we believe that in the quick commerce there's the place plays a little different than the normal 13:40 13 minutes, 40 seconds e-commerce and by having a strategic business agreement that was our objective and and that how do we have a 13:49 13 minutes, 49 seconds strategic business alliance now in the process we felt to make that strategic business alliance more meaningful and 13:57 13 minutes, 57 seconds stronger we decided also to make an investment in that Sorry if that's helpful. My second question is on automotive and mobility. 14:07 14 minutes, 7 seconds Um so this quarter I think there's there's pretty good 24 and a.5% revenue growth um in that business. This comes 14:16 14 minutes, 16 seconds at a time when broader automotive volume growth in India seems to be in the low to mid single digits. So just want to understand uh what are some of the 14:24 14 minutes, 24 seconds factors that have driven this relatively robust growth um in an industry environment that's been relatively more modest. 14:33 14 minutes, 33 seconds Yeah. So it's a happy news right. So uh the reason is the more we are able to 14:41 14 minutes, 41 seconds get into more depth of uh uh automotive se in the automotive sector uh as Rhan 14:48 14 minutes, 48 seconds talked about the our NK solutions and the what it is doing is it's getting more and more it's getting adopted more 14:56 14 minutes, 56 seconds and more and in spite of the overall automotive industry that didn't grow 15:03 15 minutes, 3 seconds that much our our part of the uh solutions did have a did get a better 15:12 15 minutes, 12 seconds adoption and that's the only reason I can uh tell you that we could uh the 15:18 15 minutes, 18 seconds attach rate increased okay so the so this is how we have been successful in Q1 15:28 15 minutes, 28 seconds got it got correct if I could just clarify most of this growth is it coming from EVs is it coming from four-wheelers is it coming from two wheelers any 15:36 15 minutes, 36 seconds additional color you're able to provide that broadbased it's broad-based honestly definitely all the EVs that you're seeing in the market are anyway coming 15:44 15 minutes, 44 seconds with like you saw that the Tata Motors uh Harrier the Mahindra BV the Mahindra B see actually h I must 15:53 15 minutes, 53 seconds just you can get the color yourself uh Mahindra has become the second largest automotive company I hope we are all 16:00 16 minutes aware of that and we are very deeply entranced with Mahindra that also helps. 16:08 16 minutes, 8 seconds Hund is also Hundai is also ramping up. 16:13 16 minutes, 13 seconds Got it. That's help. And just lastly um looks like we've made commitments to invest close to 50 crores of rupees in 16:20 16 minutes, 20 seconds both Grop and Zepto. So just want to understand what is our current um cash balance as of end of the June quarter. 16:30 16 minutes, 30 seconds uh if we include both cash cash in bank as well as liquidity I'll give you the full figure was 667 16:38 16 minutes, 38 seconds 676 crores as of 30 30th June now three major cash outflows uh either have 16:47 16 minutes, 47 seconds happened or is going to happen shortly one is zero which is 25 crores one is uh 16:54 16 minutes, 54 seconds uh G trophy another 25 crores and the 20 crores dividend which has which is getting paid right now. So if 17:02 17 minutes, 2 seconds you add up the three, it comes out to 70 crores. 70 cr. 17:08 17 minutes, 8 seconds Got it. That's helpful. Thank you very much and all the best. 17:11 17 minutes, 11 seconds Thank you. The next question is from the line of Sukit D. Patel from Eyesight Fra Private Limited. Please go ahead. 17:20 17 minutes, 20 seconds Good evening to the management and thank you for the insightful commentary. Uh I had a question on how your mapping stack 17:27 17 minutes, 27 seconds could evolve with India's uh nextgen infra. So my question is uh as India is moving uh forward towards autonomous uh 17:37 17 minutes, 37 seconds mobility and hyper local intelligence, how is MACMA India planning to evolve its real view and 4D mapping stack to 17:47 17 minutes, 47 seconds serve emerging use cases like drone corridors, EV routing infra and uh 17:54 17 minutes, 54 seconds special commerce by FI FI30 and just a followup question on this Could this also open up monetization 18:02 18 minutes, 2 seconds opportunities beyond automotive say for example in urban planning, climate uh mapping or immersive reading? Yes, that was my question. Thank you very much. 18:14 18 minutes, 14 seconds Yeah, a wonderfully framed question and that's exactly these are all the growth areas sunrise sectors that we are 18:22 18 minutes, 22 seconds absolutely well positioned for. You know map India is doing this 4D digital twin. 18:27 18 minutes, 27 seconds So not just 2D but 3D, not just standard definition but high definition in 360 18:34 18 minutes, 34 seconds realtime updating near realtime updating digital twin including the real world metaverse what we call real world. So 18:42 18 minutes, 42 seconds with immersive views so all of the sectors that you're saying is where more and more adoption of our maps and allied 18:49 18 minutes, 49 seconds technologies will happen. We are well we are positioned in each of them. As those markets grow, our our uh attach and 18:58 18 minutes, 58 seconds hence our growth in each of these segments will grow. And remember, we are a product and platform company, meaning that we have the data product, we have 19:07 19 minutes, 7 seconds the software product, software platform, and we have the capability to provide solutions to each of the industry 19:15 19 minutes, 15 seconds verticals. I mean it's a very rare thing to be product platform and solutions company providing APIs or apps as is 19:23 19 minutes, 23 seconds required by the customer and so that's what positions us well for coming 19:31 19 minutes, 31 seconds okay great that that pretty much answers my question thank you very much good evening and best of luck for all your future interviews 19:39 19 minutes, 39 seconds thank you before we take the next question we would like to remind participants to press star and one to ask a question. 19:48 19 minutes, 48 seconds The next question is from the line of Anmul Gulk from DAM Capital. Please go ahead. 19:55 19 minutes, 55 seconds Yeah. Hi, thanks for the opportunity. Uh couple of questions from my side. So from the growth perspective, uh we have 20:02 20 minutes, 2 seconds grown at around 20% uh in in this particular quarter. Um do you believe that the growth uh this year would be 20:09 20 minutes, 9 seconds more uh backended uh and and also wanted to understand that uh has the 233 K 20:16 20 minutes, 16 seconds order has it started to contribute uh into revenues for us. 20:22 20 minutes, 22 seconds Now what was your second statement uh that the 233 cr order that we won has it started to come into revenues? 20:33 20 minutes, 33 seconds Uh let me answer the second part. Yes, it has number one. Huh? Number two on 20:41 20 minutes, 41 seconds the other one backended. I don't call it backended. What I uh but from your language it is also correct. What we say 20:49 20 minutes, 49 seconds always that it is the entire year that you have to look at and there there are 20:56 20 minutes, 56 seconds certain uh seasonalities in our business and history has shown us that the Q4 is 21:04 21 minutes, 4 seconds quite high compared to anything in Q1, Q2, Q3. So if you call it as a backend 21:10 21 minutes, 10 seconds uh backended growth that will happen the answer appears to be right. Yes. But Rohan may like to add something. 21:18 21 minutes, 18 seconds Yeah I was just going to say that definitely from a government part of the business point of view it is backended it. 21:29 21 minutes, 29 seconds Understood. And secondly on this uh Zepto contract uh what can be the potential revenue uh from this uh 21:37 21 minutes, 37 seconds particular client uh from an annualized uh basis that we are looking at and would and as this part of investment 21:45 21 minutes, 45 seconds would we be also uh sharing some data uh with the uh with the company 21:52 21 minutes, 52 seconds so I mean uh uh definitely we won't be able to talk about uh you know specific numbers on specific with contracts, but 22:01 22 minutes, 1 second you can imagine that they're a large player of scale and growing fast and so hence their technology needs and technology consumption or technology 22:10 22 minutes, 10 seconds spend uh will be significant. So uh yeah definitely there's potential but we'll see as the business relationship uh 22:18 22 minutes, 18 seconds builds up and uh of course you know they shall be using uh I mean our solutions like we mentioned the APIs, SDKs etc. 22:30 22 minutes, 30 seconds Yeah. So, uh what I wanted to understand is that apart from the APIs normal APIs that we provide to customers, would 22:37 22 minutes, 37 seconds there would there be other any data sharing which will happen uh with this customers? See the opportunities are uh uh diverse. 22:46 22 minutes, 46 seconds It's not uh but APIs also is an interesting API SDK. API SDK for what? 22:54 22 minutes, 54 seconds There are so many different uh types of APIs SDK. When a customer wants to get something done uh quickly without 23:03 23 minutes, 3 seconds developing a complete technology behind it, then they use the API SDK. It could 23:09 23 minutes, 9 seconds be analytics also. It could be so many other things also. So let's not think that it is uh a small opportunity. The opportunity is pretty large. 23:20 23 minutes, 20 seconds uh and uh they like the idea that they would like to focus on their business 23:27 23 minutes, 27 seconds rather than this create just creating maps. 23:31 23 minutes, 31 seconds [Music] 23:34 23 minutes, 34 seconds Understood. Sure. Thanks. That's it from Thank you. The next question is from the 23:41 23 minutes, 41 seconds line of Abishek Kumar from GM Financial Limited. Please go ahead. 23:46 23 minutes, 46 seconds Yeah. Hi, good evening and thanks for taking my question. I think good performance on margins. Uh my question is on margin only. Uh you know mapled margins have gone up to 54%. 23:58 23 minutes, 58 seconds Um is this the new normal? Is this a sustainable level uh on for maple le business? 24:10 24 minutes, 10 seconds Again you are looking at a quarter. 24:12 24 minutes, 12 seconds Please look at the whole year. We compared that 51% 54% is more than 50% last quarter. But uh if you look at the 24:22 24 minutes, 22 seconds I don't remember exactly but what was the map red uh margin for the whole year last year. So uh we would like to do 24:32 24 minutes, 32 seconds better than last year but then overall margin we have given a guidance for this year. I think we have clearly said that 24:40 24 minutes, 40 seconds where we would like to be but then if our IITA has come to 46% this quarter 24:48 24 minutes, 48 seconds that's a great news it helps it gives us uh couple of different opportunities. It will support us in our growth revenue growth also. 25:00 25 minutes If you can remind us the guidance I'll add from my Rohan here see it's a function of the mix of products that we 25:07 25 minutes, 7 seconds are selling and it's also a function of the quantum scale that we're doing uh so 25:14 25 minutes, 14 seconds uh and and like Mr. % we have kind of a yearly objective and uh so it really is 25:21 25 minutes, 21 seconds on us it gives us some headroom to focus on growth or other types of products which you know ultimately it's that 25:30 25 minutes, 30 seconds portfolio that will lead to that overall IDA margin. So it's good in this quarter we add higher margin that may get 25:37 25 minutes, 37 seconds balanced out over the course of the year or just depending on the mix. 25:44 25 minutes, 44 seconds Yeah, just wanted to um you know check uh what was the margin what was the margin guidance for FI26 if you can just 25:52 25 minutes, 52 seconds remind us. I think we had said that it will be 35% plus if if I remember from 25:59 25 minutes, 59 seconds my investor uh meet which happened two months back but guidance is a guidance okay but 26:09 26 minutes, 9 seconds that's what I said and now you see in Q1 it is 46% Okay. Okay. Um second is on IoT. Um you 26:19 26 minutes, 19 seconds know I I understand you are now increasing your stake. Um so just wanted to understand the reason for decline 26:27 26 minutes, 27 seconds this quarter. Is it linked to you know this change in ownership and therefore some delayed decision internally etc. 26:36 26 minutes, 36 seconds And uh if so uh how should we look at the growth in hardware especially within IoT uh segment for the rest of the year? 26:46 26 minutes, 46 seconds Yeah. Uh few factors I can explain. We want to see the contribution margin in our IoT business especially around 26:56 26 minutes, 56 seconds hardware sales go up and so there was a conscious effort to increase contribution margin. We also felt that 27:03 27 minutes, 3 seconds the inventory that we had on hand in Groy was a bit too high compared to what our comfort factor would be. So we 27:12 27 minutes, 12 seconds wanted to run down the inventory a little bit but without affecting the contribution margin. Um so in general we 27:20 27 minutes, 20 seconds shied away from a few different types of hardware sales. Our opex business uh where we give the hardware out on rent 27:29 27 minutes, 29 seconds continues to go well and we have multiple new wins as you would have seen in the&m and CL highlights. Uh so 27:37 27 minutes, 37 seconds multiple wins across people and goods uh movement etc across event or automotive 27:44 27 minutes, 44 seconds or school bus etc. Um so uh the increasing the contribution margin was an objective which we achieved. Uh 27:53 27 minutes, 53 seconds achieving uh you know run is something that we achieved. 27:58 27 minutes, 58 seconds Definitely there's a fixed cost element in the company that had has had increased and we want to rightsize it 28:07 28 minutes, 7 seconds and uh that is a little bit part of change of management and how to manage personnel who to keep who not to keep 28:14 28 minutes, 14 seconds etc. So there that's a fixed cost uh addressing and a few of the things around systems u which led to a little 28:23 28 minutes, 23 seconds bit increase in opex uh especially around sim cost and sim usages because it's an IoT uh company. So a few of the 28:32 28 minutes, 32 seconds systems we have to also uh kind of uh clean up because like I said we see a pretty large headroom for growth in this 28:39 28 minutes, 39 seconds IoT. We'd rather do all this cleanup and consolidation right now so that from there the growth can be secular and 28:48 28 minutes, 48 seconds again there's enough contribution margin in this business that the operating leverage will kick in. You've seen that 28:55 28 minutes, 55 seconds in the last 8 10 quarters of performance in this company. But there comes a time when you need to consolidate a little 29:03 29 minutes, 3 seconds bit uh so that you are orienting the ship in a way so that next phase of growth uh you don't again face issues 29:10 29 minutes, 10 seconds every uh quarter every few quarters. So so there is going to be growth in this. 29:15 29 minutes, 15 seconds It's a pretty large uh there's going to be increased profitability. We will make uh investments in Gro in terms of uh you 29:25 29 minutes, 25 seconds know the right type of investments around uh sales, the right type of investments around or resource allocation and efforts around products 29:34 29 minutes, 34 seconds and productivity. So those things will happen uh to to see the business through in a good way in the coming uh quarters or years. 29:43 29 minutes, 43 seconds Yeah. Uh I'll just add a little bit just bear with us for the IoT for the next few quarters and you'll see uh you'll 29:50 29 minutes, 50 seconds see what uh uh a good uh uh good good things happening in due course of time. 30:00 30 minutes Sure. We we'll look forward to uh those uh good things. One last question from my side. Any particular rationale for 30:08 30 minutes, 8 seconds creating a separate subsidiary for a government and defense sector? and if you can just talk about you know um 30:15 30 minutes, 15 seconds how's that demand in that sector and pipeline looking thank you I I think it uh creates a focus again 30:25 30 minutes, 25 seconds there's a large uh business to be done around government digital transformation government digital twin and government 30:32 30 minutes, 32 seconds uh defense tech and so the rationale to create u you know uh to house that business within the wholly owned 30:40 30 minutes, 40 seconds subsidiary was to create focus in the longer term. It might create some value also. Um I mean of course it it it could 30:48 30 minutes, 48 seconds create some value also but primarily right now it is from a management uh giving the focus and the teams there end 30:57 30 minutes, 57 seconds to end focused on the servicing the needs of the government. Uh that's the in terms of wins again you would have 31:04 31 minutes, 4 seconds seen in the CE part of the highlights especially on the government side lots of new wins across central state uh and 31:13 31 minutes, 13 seconds local governments including also in defense covering our mathled IoT digital twin digital transformation and defense 31:21 31 minutes, 21 seconds tech uh set of solutions. So uh quite good. We're quite happy. Uh but of course you know the opportunity is large 31:29 31 minutes, 29 seconds and that's where the team is focused on to keep increasing every quarter. 31:35 31 minutes, 35 seconds So that's very helpful. Thank you and all the best. 31:39 31 minutes, 39 seconds Thank you. The next question is from the line of Samir Dosani from ICICF Credential AMC. Please go ahead. 31:46 31 minutes, 46 seconds Yeah, thanks for the opportunity. So uh I see uh you have mentioned updates on Southeast Asia business. First uh this 31:55 31 minutes, 55 seconds uh we you've started we have gone live with tier one supplier to a major car OEM. So is is this auto ever or apart 32:03 32 minutes, 3 seconds from that we have we have started uh doing business with some other OEMs. 32:08 32 minutes, 8 seconds That is first question. Uh and if you can share some update on how how are we doing with you know other OEMs in 32:15 32 minutes, 15 seconds Southeast Asia. So that will be helpful if you can give some update on that. 32:21 32 minutes, 21 seconds So uh so two parts to Southeast Asia one is what mapendia is doing and selling its solutions to customers uh kind of in 32:30 32 minutes, 30 seconds that in that area end customers directly in that you would have seen a win in&M which is around this tier one for end 32:38 32 minutes, 38 seconds automotive client and yeah end automotive client there is uh Hyundai uh 32:45 32 minutes, 45 seconds uh but the tier one is different um uh and It's for a solution of Makma India. 32:51 32 minutes, 51 seconds We would have also seen a win in the enterprise side which is a oil and gas uh company in Southeast Asia your place we might have mentioned. 33:01 33 minutes, 1 second Um so that part is going well uh in terms of expanding the the the the 33:08 33 minutes, 8 seconds awareness and hence the interest and eventually the adoption of India's international solutions in that market. 33:16 33 minutes, 16 seconds Uh parally the JV also is there Terrell link technologies TLT which is the JV with Hyundai Auto where they own 60% and 33:25 33 minutes, 25 seconds we own 40% and the JV is uh in build phase they're doing a good job they're 33:31 33 minutes, 31 seconds putting together the maps for 10 uh large countries in the Southeast Asia uh region uh and then making that available 33:41 33 minutes, 41 seconds to OEM customers as a as a map company uh the way that map India historically 33:47 33 minutes, 47 seconds has done uh in India I mean start for for many years and that uh that build phase is going well. Of course you know 33:56 33 minutes, 56 seconds the anchor customers there would be the parent company of Hundai autover uh but conversations are also on with other 34:04 34 minutes, 4 seconds OEMs uh and that we that this is in the next 1 2 3 years uh you know uh so FI27 34:15 34 minutes, 15 seconds start of FI27 onward the TLC uh uh kind of revenues will also start coming in in a good Okay. 34:25 34 minutes, 25 seconds Okay. Okay. Okay. Thanks. Thanks for this update and thank you. The next question is from the line of Kesha from NH. Please go ahead. 34:38 34 minutes, 38 seconds Yeah. Thanks for the opportunity and congrats. 34:43 34 minutes, 43 seconds So as you mentioned that you have plans to evolve into urban planning and develop a digital. So given that that some players are already established in 34:51 34 minutes, 51 seconds this space and entire cities. So think that they had a they have hold a 34:57 34 minutes, 57 seconds competitive advantage over you remember we are product platform API 35:07 35 minutes, 7 seconds solution uh company both and we've been doing this digital twin data maybe without uh you know tagging it as such 35:17 35 minutes, 17 seconds uh digital twin solutions and if you see the wins that we are doing uh you know most of the wins that we are having in 35:24 35 minutes, 24 seconds the government have an element of uh digital twin already whether at a uh uh 35:31 35 minutes, 31 seconds local or state level. Um so I would say the competitive advantage for customers 35:38 35 minutes, 38 seconds uh is with mapia uh they are able to get the maps the software uh uh both rather 35:46 35 minutes, 46 seconds than just engage for services and not being able to use uh use it uh beyond a survey type of activity. So um yeah and 35:56 35 minutes, 56 seconds like we've said before we're a bit careful with uh how we pick up uh business. I mean we make sure that these 36:03 36 minutes, 3 seconds are collectible, these are executable uh you know there's a there's a uh there's a uh kind of deliberateness to how we 36:12 36 minutes, 12 seconds pick up uh certain business rather than just picking business for the sake of business. I I'll just add a little bit 36:19 36 minutes, 19 seconds uh give you some color of flavor. Uh if I go back to the little bit history when we were building the products and 36:28 36 minutes, 28 seconds platforms whereby what where we have succeeded so much today and we are far ahead or rather far we are probably the only one in many senses. 36:39 36 minutes, 39 seconds There were plenty of services company who were making the maps for a company 36:46 36 minutes, 46 seconds for somebody and they will have some kind of a software to do some job. Now over a per this is the 2D map I'm 36:55 36 minutes, 55 seconds talking about not digital twin over a period per period of time what has happened now the the end the companies 37:03 37 minutes, 3 seconds now the end users they are not interested in getting the survey done or the uh rather use the final product 37:12 37 minutes, 12 seconds which includes software and some platform same thing we I'm forcing that with this 37:20 37 minutes, 20 seconds kind of a servicesoriented dig Digital twin kind of a thing will go away ultimately and what will happen is those 37:29 37 minutes, 29 seconds companies like us who will provide the cor right platform and product will succeed and will be sus sustainable. 37:40 37 minutes, 40 seconds Got it sir. Thank you so much for the detailed explanation. 37:46 37 minutes, 46 seconds Thank you. The next question is from the line of Sahara Chetti from Anendraati. Please go ahead. 37:53 37 minutes, 53 seconds Hi, am I audible? Yes. 37:56 37 minutes, 56 seconds Um, yeah. Okay. Uh, apologies for joining the call a little late. So, I just wanted to get a sense of uh when 38:03 38 minutes, 3 seconds can we expect a turnaround in the JV in terms of uh in terms of the losses that we're currently making. And secondly, what is the trajectory uh and what kind 38:12 38 minutes, 12 seconds of uh and when can we expect the revenue contribution from our international side size of business to be sort of sizable in our overall top line? If you can give 38:21 38 minutes, 21 seconds us a sense of or color on the trajectory that would be great. Yeah. 38:26 38 minutes, 26 seconds Yeah. On on the international revenues they've already started to flow and international from MMI. I'll come to the 38:34 38 minutes, 34 seconds GB again. Uh for MMI from international revenues have already started to come in and it will only increase over the time 38:42 38 minutes, 42 seconds uh that uh uh to come. Uh we are having wins every quarter. Um of course for it to become sizable enough it will 38:50 38 minutes, 50 seconds probably take like we said about a year or or two but it will be on then for the 38:57 38 minutes, 57 seconds JV also we've talked about that end of uh FI26 or Q1 FI27 is when the JV will 39:05 39 minutes, 5 seconds start also generating revenues imagine that especially in automotive once you win the contract the go live uh 39:15 39 minutes, 15 seconds takes some time Uh so uh so that's what so that's when the DV will also start kind of contributing. 39:25 39 minutes, 25 seconds Okay sir thank you so much. 39:30 39 minutes, 30 seconds Thank you ladies and gentlemen. This was the last question. I now hand the conference over to the management for the closing comments. Thank you and over to you sir. 39:42 39 minutes, 42 seconds uh uh thanks to all of you for listening to us. Uh I can only say in the end that we are we are on the right trajectory. 39:55 39 minutes, 55 seconds We are confident uh we feel very uh confident that FY28 will reach our goal of,000 cr. We need your good wishes. 40:06 40 minutes, 6 seconds That's how I would like to end. 40:11 40 minutes, 11 seconds Thank you. On behalf of CE Infosystems Map My India Limited, we conclude this conference. Thank you for joining us and you may now disconnect your lines. 40:23 40 minutes, 23 seconds Thank you.