CL Educate Ltd — Q4 FY26

CL Educate Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=byt0H8ls0mk Published: 1 hour ago

0:01 1 second Um thank you and uh very good afternoon ladies and gentlemen and welcome to CL Educate Limited's Q4 FY26 analyst call. 0:13 13 seconds Uh my name is Arjun Wadada. I'm the group CFO of CL Educate and I'll be your host today. Uh welcome once again to our 0:20 20 seconds Metavverse platform called Wosmos. We've been using this uh now for over three years for our analyst calls. Uh this 0:28 28 seconds call as always will be recorded, transcribed and made available in the investor zone on our website within the 0:35 35 seconds next 48 hours. Should you have any questioning panel uh time during this session, I 0:44 44 seconds request you to please put them in the chat box in the bottom right hand corner of your screen. We will address them towards the end of the session. Uh 0:53 53 seconds joining me on this conference call today are Mr. Satya Narayan. He's the founder and chairman of CL Educate. Uh Mr. 1:01 1 minute, 1 second Gotham Puri, co-founder, vice chairman and managing director. Goautam as you know takes direct reporting of the edtech business which includes our test 1:10 1 minute, 10 seconds prep platform monetization and publishing businesses. Uh Mr. Nikil Mahajan, he's our 1:30 1 minute, 30 seconds Ajun is Ajun has got disconnected. Yeah, it seems I can't hear. 2:19 2 minutes, 19 seconds Arjun has got logged out. He's logging in. Maybe we could wait for 20 seconds otherwise. 2:26 2 minutes, 26 seconds Yeah, my apologies everyone and uh I need to check where where you lost me. 2:33 2 minutes, 33 seconds Uh did was I midway through the introductions of the presenters or Yes. Yes. Yes. S. 2:43 2 minutes, 43 seconds Yeah. So maybe I'll just uh reboot that and just uh you know maybe we could just introduce Yatri sir and we could move on. 2:50 2 minutes, 50 seconds Okay, perfect. Uh and joining us for the first time today on this conference call is Mr. Yatri Vin who of course needs no 2:59 2 minutes, 59 seconds introduction as the former uh CFO of the National Stock Exchange Group. Uh he joins us today as the chairman of Dexit 3:07 3 minutes, 7 seconds Global Limited and as an independent director on the CL educate board. uh Yatrix SA as we fondly call him is also 3:15 3 minutes, 15 seconds the chairman of our group strategic finance council which is an internal body we created nearly a year ago uh to 3:23 3 minutes, 23 seconds provide strategic financial oversight inputs and guidance on various governance and financial matters across the entire group with the aim obviously 3:32 3 minutes, 32 seconds to create long-term value u having completed the introduction of the panelists uh may I now Rick Satya to 3:40 3 minutes, 40 seconds come in and say a few words. Satya, over to you. 3:46 3 minutes, 46 seconds Okay, thank you Arjun and uh welcome uh Yafric sir for the first time into this group. Uh and good afternoon everybody. 3:59 3 minutes, 59 seconds Uh I'll take five minutes and uh make certain uh broad commentary and observations uh about the year gone by and and the way we're looking ahead. 4:11 4 minutes, 11 seconds Today I'm uh particularly delighted uh to be giving you an update for one very 4:19 4 minutes, 19 seconds specific reason and that is the completion of the 4:27 4 minutes, 27 seconds uh integration of uh dexit into the overall CL educate ecosystem. 4:35 4 minutes, 35 seconds the acquisition, the stuff that we had to do post that integration of people, 4:42 4 minutes, 42 seconds processes and the leadership transition, all of those are complete and that is something uh very very uh important 4:50 4 minutes, 50 seconds update uh in my view and uh that's the context where I will take a couple of minutes to make some observations on the 4:59 4 minutes, 59 seconds edtech business and one specific observation about martekch before I hand it over to Nikil to take us through uh little bit more of details of the year that has gone by. 5:12 5 minutes, 12 seconds As you know, our core business test prep is a low entry barrier business 5:21 5 minutes, 21 seconds and accompanied with that the advent and the acceleration of AI 5:27 5 minutes, 27 seconds over the last couple of years was giving us a lot of anxious moments on how do we 5:36 5 minutes, 36 seconds stay aggressive, proactive and not lose 5:43 5 minutes, 43 seconds market shares while we still search for growth. 5:48 5 minutes, 48 seconds And that search almost 3 years ago when test prep was predominantly the 5:56 5 minutes, 56 seconds contributor in the entire education space for us led us to the discovery of Dexit. 6:05 6 minutes, 5 seconds And the reason why we went out and we were lucky enough also to get 6:13 6 minutes, 13 seconds that transaction done is because XIT gives us a couple of very 6:21 6 minutes, 21 seconds important strengths. Number one, it's a high entry barrier business. 6:29 6 minutes, 29 seconds Number two, it's a technology backboneled business which is scalable and at 10 million 11 million assessments 6:38 6 minutes, 38 seconds that we do there are not many platforms like us now and in the new integrated 6:46 6 minutes, 46 seconds world assessments and learning will now begin to kick in a lot of synergies as we move 6:54 6 minutes, 54 seconds forward. Some of those have already began to take shape. 6:58 6 minutes, 58 seconds Uh so the dexit integration has happened 7:07 7 minutes, 7 seconds and the second thing that we did during the course of last 12 months post integration was we continued our search 7:14 7 minutes, 14 seconds on the other large addressable market opportunities where XIT and CL both 7:22 7 minutes, 22 seconds could play together and that's the second important breakthrough that we are seeing 7:30 7 minutes, 30 seconds while the higher education space is beginning to grow in India. One of the big 7:38 7 minutes, 38 seconds opportunities that is opening up is that of higher education enrollment in universities. 7:47 7 minutes, 47 seconds The expected growth of higher education enrollments in colleges and universities is expected to grow from 4 and a half 7:55 7 minutes, 55 seconds crores to 8 crores and about 60% of them are expected to come in the online universities programs 8:04 8 minutes, 4 seconds to be offered by the top 200 universities NIF ranked top 200 universities including central 8:12 8 minutes, 12 seconds universities IITs IM state universities and so And I'm very happy to share with you 8:20 8 minutes, 20 seconds that the combined entity of CL 361 and DEXIT because of their now combined 8:27 8 minutes, 27 seconds strength we have been empanled to partner with these top 200 universities. 8:33 8 minutes, 33 seconds From among these top 200 universities we now will begin our work to help them in enrollment, 8:41 8 minutes, 41 seconds job readiness and career training and actually also placement. So that's the second new area that will begin to grow over the next one to two years. 8:52 8 minutes, 52 seconds So these are a couple of broad observations that I wanted to make saying that the new entity is becoming a 9:00 9 minutes big engine and the synergies of CL and DEXIT have begun to kick in. 3 years from now I think this will really look a 9:09 9 minutes, 9 seconds very powerful large play uh under CL educate on the Martek side I think there are two 9:19 9 minutes, 19 seconds important things that are getting focused and you have been hearing about it number one is the continued 9:27 9 minutes, 27 seconds internationalization of Keystone as a business Singapore Indonesia and US they are they are 9:36 9 minutes, 36 seconds beginning to continuing to grow and the other thing Keystone team is working very very well is the again adoption of 9:45 9 minutes, 45 seconds AI and technology platforms around which services business also can 9:51 9 minutes, 51 seconds be is going is getting built. So these are some broad observations that I wanted to make and maybe at this stage I 9:59 9 minutes, 59 seconds will request Nikil to take over and take us through the presentation. over to you. Thank you, Satya. 10:08 10 minutes, 8 seconds Uh before I get into the specifics, uh I just wanted to make a couple of uh 10:15 10 minutes, 15 seconds headline uh statement, I think, uh the year gone by has been a monumentous year 10:24 10 minutes, 24 seconds at least on two accounts. one uh this was the first year when CL as a group 10:30 10 minutes, 30 seconds crossed the 500 cr revenue threshold and 10:35 10 minutes, 35 seconds in my opinion that is a first big uh milestone to be covered and captured in 10:44 10 minutes, 44 seconds its journey to move to the higher revenue orbit. The second thing which was important was the successful 10:54 10 minutes, 54 seconds integration and stabilization of the DEX business from its earlier home at NSC 11:01 11 minutes, 1 second into the CL and I think the past 12 months uh the smoothness with which the 11:08 11 minutes, 8 seconds transition has happened uh I think that has been these two have been in my 11:15 11 minutes, 15 seconds opinion the two most monumentous us uh pointers uh to just keep at back of our heads as we go deeper into the presentation. 11:27 11 minutes, 27 seconds Uh now let me just cover some of the key highlights uh of our financial performance. Our 11:34 11 minutes, 34 seconds revenue has grown from uh 368 crores last year to 570 crores which is roughly 11:42 11 minutes, 42 seconds a 55% growth. Our AIA has grown from 33 cr to 69 cr which is more than 112% 11:52 11 minutes, 52 seconds growth. I think one of the most critical aspects uh which I would want to bring 11:59 11 minutes, 59 seconds to everybody's notice is that the total cash generated from operations during 12:06 12 minutes, 6 seconds the past 12 months uh is a significant robust number of 79 cr uh up from 26 12:14 12 minutes, 14 seconds crores uh which was the cash generation done in the previous year. 12:20 12 minutes, 20 seconds Uh another critical aspect which I would want uh to draw attention to all of you 12:28 12 minutes, 28 seconds is that during the year gone by our interest and depreciation charge uh 12:38 12 minutes, 38 seconds exploded to an amount of 85 crores uh from the earlier last year's figure of 29 cr. So basically 12:47 12 minutes, 47 seconds uh an increase of 56 crores in our interest and depreciation cost largely 12:55 12 minutes, 55 seconds fueled by uh a significant amount of debt which we took to fractify the DEX 13:02 13 minutes, 2 seconds acquisition and also the associated depreciation which came partly as because of uh uh the addition of the DEX 13:11 13 minutes, 11 seconds business as well as certain other depreciation charges. is on account of the acquisition on account of PPA being 13:19 13 minutes, 19 seconds done. Uh the net cash generate uh cash generated on the balance sheet uh last 13:26 13 minutes, 26 seconds year was 26 cr. Uh this year it is 46 cr. So during the last 12 months we have 13:34 13 minutes, 34 seconds added about 20 crores uh in addition from where we were. A brief snapshot. Uh 13:42 13 minutes, 42 seconds our current outstanding borrowings are at about 233 crores. Uh we had taken an debt of 210 crores to fund the 13:50 13 minutes, 50 seconds acquisition. The acquisition led borrowing is down to 180 cr after having 13:58 13 minutes, 58 seconds as on date after having serviced for the last five quarters. 14:03 14 minutes, 3 seconds Another key aspect which I think would is worth noting is that our overall working capital 14:12 14 minutes, 12 seconds uh cycle has optimized and our working capital size is currently at 50%. 14:21 14 minutes, 21 seconds despite a roughly a 50% growth in revenue. So I think a very tight working 14:29 14 minutes, 29 seconds capital management has led uh to a reasonable stabilization and 14:36 14 minutes, 36 seconds strengthening of our overall cash position. Uh our cash in bank as on date 14:44 14 minutes, 44 seconds uh is about 94 crores versus roughly around 50 crores last year. uh this is 14:51 14 minutes, 51 seconds excluding the amount of about 185 to 190 crores uh which is for the RPS reduction 14:59 14 minutes, 59 seconds uh redemption which we are awaiting the final HCLT approval before uh that amount is redeemed and passed on to national stock exchange. 15:10 15 minutes, 10 seconds I think the key takeaways for the year gone by uh I think are the very robust 15:18 15 minutes, 18 seconds cash generation coming out of business uh despite couple of headwinds in 15:24 15 minutes, 24 seconds different segments. I think the overall health of business is pretty good. uh 15:33 15 minutes, 33 seconds the businesses are generating significant amount of cash and I think in the years to come by the cash 15:41 15 minutes, 41 seconds generation from each and every line of business will only increase uh bringing in more stability and enabling us to grow more rapidly in the years to come. 15:54 15 minutes, 54 seconds Arjun can we move to the next slide please? Yeah. Uh as you are aware uh till the last uh 16:03 16 minutes, 3 seconds investors engagement we used to broadly cover our business in three different segment which was the edtech which was 16:12 16 minutes, 12 seconds predominantly our uh test prep and the platform monetization business. We used 16:19 16 minutes, 19 seconds to treat Dex as an assessments arm and a separate line of business and Martekch obviously being a different line of 16:26 16 minutes, 26 seconds business was treated differently. Uh but going forward I think with integration 16:33 16 minutes, 33 seconds of DEX now almost complete. Uh we have enlarged our business into uh the AT 16:41 16 minutes, 41 seconds tech space into broadly two part. one assessment which is our DEX business and the learning and development business 16:50 16 minutes, 50 seconds which is based on uh our test prep uh university outreach engagement and our 16:57 16 minutes, 57 seconds publishing business uh both being focused in and around the education services education platform and education engagement to the customers. 17:08 17 minutes, 8 seconds So on the overall basis the edtech business consists of the assessments and the L&D business and the MK business is 17:16 17 minutes, 16 seconds our events and the marketing outreach and working with the corporates for the as their extended marketing arm. Uh a 17:25 17 minutes, 25 seconds brief snapshot of the business performance of e of the two divisions. So at tech the 17:32 17 minutes, 32 seconds assessments our revenue operating revenues grew from 205 crores to 223 17:38 17 minutes, 38 seconds crores. Now this might uh indicate a reasonably modest 9 to 10% growth in 17:47 17 minutes, 47 seconds revenue. However, I would just want uh uh to highlight couple of points. one uh 17:56 17 minutes, 56 seconds we have successfully rolled over 100% of our existing clientele into the 18:04 18 minutes, 4 seconds subsequent year with multiple year renewals beginning April 26 and going on. 18:12 18 minutes, 12 seconds Number two, uh there were certain revenues of which we had order book confirmations. 18:20 18 minutes, 20 seconds However, the delivery of those orders rolled over which were initially expected in Q4 of last year into Q1 and 18:29 18 minutes, 29 seconds Q2 which at times does happen in this segment because uh we being an implementation agency the agency which 18:38 18 minutes, 38 seconds is controlling the examination if the uh as per the choice the what particular date uh is it suitable they roll it over 18:46 18 minutes, 46 seconds by 60 to 90 to 120 days. So some of the business which was expected in to close 18:52 18 minutes, 52 seconds in FY26 or recorded in 26 has rolled over into the current fiscal year. 19:00 19 minutes Number three, I think as we speak the order book for FY27 19:06 19 minutes, 6 seconds uh for the assessments business is almost close to 80 to 85% of the entire 19:15 19 minutes, 15 seconds revenue which we have achieved in the full year of 26. So 19:22 19 minutes, 22 seconds just 6 weeks into the current fiscal year with an order book of close to 85% 19:29 19 minutes, 29 seconds of the revenue achieved in the previous year I think we are sitting reasonably 19:35 19 minutes, 35 seconds pretty in terms of uh the possible revenue growth which we can acrewue in 19:42 19 minutes, 42 seconds the coming year. I think uh we should be able to so show a reasonably healthy 19:50 19 minutes, 50 seconds revenue growth in this line of business in the coming year. 19:54 19 minutes, 54 seconds a learning and development uh business which predominantly constitutes of our test prep and the university engagement 20:03 20 minutes, 3 seconds and publishing business. As we have been highlighting uh that this business has been facing 20:10 20 minutes, 10 seconds headwinds, structural headwinds because as Satya highlighted in his uh initial 20:17 20 minutes, 17 seconds input about uh the overall education space especially the uh evolving space 20:25 20 minutes, 25 seconds being uh churned pretty rapidly because of rapid adoption of AI uh which is uh 20:35 20 minutes, 35 seconds throwing the conventional methodologies of delivery of business conventional 20:41 20 minutes, 41 seconds pricing points of uh learning solutions literally out of the wind. So despite 20:48 20 minutes, 48 seconds the fact that our volume of enrollment uh grew by about 4% the average realization which we were 20:57 20 minutes, 57 seconds able to realize last year saw a dramatic downward movement by about 12 to 14%. 21:05 21 minutes, 5 seconds Which resulted in our overall revenue declining by about 11% from the previous year. 21:14 21 minutes, 14 seconds Uh couple of also structural changes which have been impa impacting this 21:20 21 minutes, 20 seconds segment has been uh availability of products in a very modular flexible 21:30 21 minutes, 30 seconds uh small ticket size uh manner at a price point which is a 21:39 21 minutes, 39 seconds fraction of what used to be the norm couple of years ago. So earlier when students used to come for a full 21:46 21 minutes, 46 seconds classroom program priced at anywhere between 30,000 to 60,000 rupees. Now students are actually going in for 21:54 21 minutes, 54 seconds smaller modular components of the same program depending on what they wish to learn and what they do not wish to 22:02 22 minutes, 2 seconds subscribe to at a price point which is 2,000 3,000 4,000 rupees. So uh that 22:09 22 minutes, 9 seconds shift has resulted in uh a realignment and the restructuring of the market and 22:17 22 minutes, 17 seconds lot of solutioning being available through AI deployed tools at negligible 22:25 22 minutes, 25 seconds throw price throwaway pricing or at a very significantly low price has caused a certain disruption in the market. uh 22:34 22 minutes, 34 seconds we expect that uh this disruption is likely to continue for another four to 22:40 22 minutes, 40 seconds five quarters. Uh we while things seem to be appear stabilizing 22:48 22 minutes, 48 seconds we expect that even in the coming year we see this business uh not showing dramatic growth. 22:56 22 minutes, 56 seconds uh uh we expect the business in the L &D segment to more or less remain flat and 23:04 23 minutes, 4 seconds uh uh however there are structural adjustments in the way in our cost structures in the delivery platform in 23:13 23 minutes, 13 seconds the manner of delivery uh I think we are uh restructuring the way the business is getting delivered to ensure sustained 23:21 23 minutes, 21 seconds profitable growth in the uh coming year business again has grew about by about 23:28 23 minutes, 28 seconds 11% on an overall basis. Our international business grew by about 20%, the India business grew about 5%. 23:36 23 minutes, 36 seconds uh we continue to service some of the largest IT brands like Dell, Salesforce, AWS 23:45 23 minutes, 45 seconds have added couple of good brands internationally like Moody's, Adobe, Autodesk especially in the international 23:53 23 minutes, 53 seconds markets and some of the leading Indian brands which we had never worked before like 24:01 24 minutes, 1 second Deoid, PWC, Emirates, Hilton etc. I think uh uh the clientele list has 24:09 24 minutes, 9 seconds expanded significantly and our endeavor to be able to mine these new accounts in an extremely positive manner in the 24:18 24 minutes, 18 seconds coming years uh should give a good runway for a revenue expansion uh over the next few quarters. 24:27 24 minutes, 27 seconds Can we move to the next? Uh now I'll want to spend some specific uh time business-wise. So let me start with uh 24:36 24 minutes, 36 seconds decks. Well, broadly I've given the initial update of uh the business revenue growing from 200 uh 203 to 205 to 223. 24:47 24 minutes, 47 seconds It generated an operating aida of about 51 cr versus 34 crores last year. 24:55 24 minutes, 55 seconds uh I've shared some of those details earlier. All the contracts were rolled over uh 100% of the contracts were 25:02 25 minutes, 2 seconds rolled over and that was one of our first core objectives uh during the first 12 months 25:10 25 minutes, 10 seconds of our transition. We have added 20 new customers and many of those new customers are from the academic space. 25:20 25 minutes, 20 seconds for example uh IM Bangalore, FPSB, uh Aayush Ministry, uh Major Learning, uh and I think with 25:30 25 minutes, 30 seconds the increasing growing thrust of being able to penetrate more into the 25:37 25 minutes, 37 seconds academic uh environment, academic institutions like universities, colleges, schools, 25:45 25 minutes, 45 seconds etc. in close synergy with CL. I think uh we are now entering a phase after 25:53 25 minutes, 53 seconds having stabilized the and integrated well into the uh CL ecosystem to press the pedal and accelerate the growth in the coming years. 26:04 26 minutes, 4 seconds Uh I think uh the core strength uh of DEX has always been its uh cutting edge 26:14 26 minutes, 14 seconds technology and innovation and with new technology tools continuously 26:20 26 minutes, 20 seconds getting added to its armory I think uh we will we are ahead of the our other 26:28 26 minutes, 28 seconds competitors in the space and will continue to do so especially with the 26:34 26 minutes, 34 seconds rapid adoption and integration of uh technologies like bring your own device 26:41 26 minutes, 41 seconds BYOD and AIdriven remote proctoring while remote procured assessments in 26:47 26 minutes, 47 seconds India haven't uh scaled up that rapidly uh due to cost constraints but I see uh 26:56 26 minutes, 56 seconds with our cutting edge uh technology uh I think is ideally positioned to disrupt that 27:04 27 minutes, 4 seconds market and rapidly expand in the remote proctoring space. 27:10 27 minutes, 10 seconds Uh I think historically DEX has always been a IT service infrastructure 27:18 27 minutes, 18 seconds deployed services player. For the first time, uh, DEX in close collaboration 27:25 27 minutes, 25 seconds with CL has now got into a long-term IP play with the development of the MySati 27:34 27 minutes, 34 seconds platform and the technology backbone which uh has started going out into the market. I have covered specific uh some 27:42 27 minutes, 42 seconds of those details later in the presentation. 27:46 27 minutes, 46 seconds uh I've already covered our getting making deeper inroads into the ATTE tech system 27:54 27 minutes, 54 seconds uh in closed enhanced synergies with the CL group. We are also making some initial 28:02 28 minutes, 2 seconds uh initiatives and uh small steps into our global outreach in partner strategic 28:09 28 minutes, 9 seconds partnership with for execution and delivery of digital assessments internationally. 28:16 28 minutes, 16 seconds also wanted to share with all of you that uh uh in text we recently uh post 28:25 28 minutes, 25 seconds the retirement of the outgoing CEO we have onboarded and uh successfully transitioned 28:34 28 minutes, 34 seconds uh a new CEO into the business who comes with significant experience uh both in the technology space as well 28:42 28 minutes, 42 seconds as having spent a lot of time in the education space in India and I think DEX is 28:50 28 minutes, 50 seconds ideally poised for a rapid growth in the coming uh coming years. 28:58 28 minutes, 58 seconds uh on the edtech space I think uh while I've given some uh brief update uh I 29:05 29 minutes, 5 seconds think the entire sector is undergoing a structural readjustment uh the customer and the consumer 29:13 29 minutes, 13 seconds behaviors are evolving changing rapidly and as I shared earlier about uh the 29:20 29 minutes, 20 seconds choice of customer going in for smaller modular products rather than going in for the entire length full duration 29:28 29 minutes, 28 seconds courses taking in courses in small modules at fractional point price 29:33 29 minutes, 33 seconds points. Uh due to this disruption of uh driven not just by AI but also by the 29:42 29 minutes, 42 seconds consumer behavior I think the entire sector is uh readjusting itself to the 29:49 29 minutes, 49 seconds new environment. the new unit economics are getting set up and every player in 29:56 29 minutes, 56 seconds this industry is uh readapting realigning itself to the changed environment 30:03 30 minutes, 3 seconds uh as uh the things evolve in order to stay ahead 30:11 30 minutes, 11 seconds of the learning curve. CL has uh already adopted AI le learning modular learning 30:20 30 minutes, 20 seconds products. Uh we have re-engineered our existing goto customer channel 30:28 30 minutes, 28 seconds and our platform develop deployment through easy apply uh which facilitates 30:35 30 minutes, 35 seconds on a scale for re uh for the students to reach out to the relevant universities at the earliest has only accelerated 30:45 30 minutes, 45 seconds some of those deployments. Besides that to adapt to the changing structure uh structural changes in the industry we 30:53 30 minutes, 53 seconds have also suitably recalibrated and readjusted our cost structures uh to 31:01 31 minutes, 1 second keep the business profitable and sustainable uh for the next year. Uh some of those 31:08 31 minutes, 8 seconds things will start reflecting uh in the quarters which we which will follow during the course of the year. But I 31:17 31 minutes, 17 seconds think the o overall trajectory while the revenues may stay flattish for another 31:24 31 minutes, 24 seconds four quarters before they begin to see a uptick. I think on the profitability side we will definitely see uh the 31:33 31 minutes, 33 seconds needle beginning to show a positive uh upward movement from Q1 itself. 31:41 31 minutes, 41 seconds Can we move forward? 31:44 31 minutes, 44 seconds Uh I think uh I've covered some of these parts uh individually in the decks and the tech thing. 31:53 31 minutes, 53 seconds Uh see uh one of the key movements in the way we are approaching the entire tech sector is that earlier the segment 32:02 32 minutes, 2 seconds we we used to operate was a small market. Uh whether it was MBA, law, 32:10 32 minutes, 10 seconds learn uh IPM etc. Those were small markets. However, with integration of DEX into the CL fold uh which itself 32:19 32 minutes, 19 seconds services about 11 million customers for one or the other kind of assessments uh 32:26 32 minutes, 26 seconds and with the development of the IP myati and universities and corporates 32:33 32 minutes, 33 seconds beginning to align and sign up with that. I think the uh we have now move 32:40 32 minutes, 40 seconds moved from a small pool of the total addressable market to a significant 32:47 32 minutes, 47 seconds larger pool of addressable market and all that scale up will be driven through 32:54 32 minutes, 54 seconds technology in a pretty cost efficient way. While some of those may not reflect 33:01 33 minutes, 1 second uh big ticket in revenues in the immediate quarters but if we were to look from a 3 to five year time horizon 33:08 33 minutes, 8 seconds I think this is one of the critical pivots and uh realignment in the focus 33:16 33 minutes, 16 seconds of being able to move from a small pool of target audience to a very large pool of target audience that as Satya said 33:25 33 minutes, 25 seconds with the number of kids expected to move from four and a half crores were studying in universities and colleges to 33:34 33 minutes, 34 seconds about 8 crores in the next five to six years and a large chunk of it through online learning online degree etc. I 33:43 33 minutes, 43 seconds think uh uh the movement to a larger pool uh itself will open up many more 33:51 33 minutes, 51 seconds opportunities uh in a phase manner over the next couple of years and that should reflect in our business outcomes over a period of time. 34:05 34 minutes, 5 seconds uh on the MK business uh uh as I shared earlier our revenues has grown from uh 34:12 34 minutes, 12 seconds roughly by roughly around 11% to about 161 crores uh uh was slightly down 34:20 34 minutes, 20 seconds because uh some of the uh the new business which we added in the social events and the luxury wedding segment 34:29 34 minutes, 29 seconds that being in the incubator stage there were initial uh setup cost and the learning uh initial cost before the 34:37 34 minutes, 37 seconds revenues scaling up from this year onwards. Uh our domestic to international revenue mix has been 34:45 34 minutes, 45 seconds roughly one is to two and we are hovering around that. Our focus for the 34:52 34 minutes, 52 seconds next year and the year beyond that is predominantly driven by two or three uh 34:59 34 minutes, 59 seconds primary focus areas. one repivoting our revenue mix to higher margin revenue 35:06 35 minutes, 6 seconds segments like C and technology products like wasmos which is our uh virtual events platform on which uh we are 35:15 35 minutes, 15 seconds currently holding this session and the agentic AI tool the accountbased marketing agentic AI tool Versa which we 35:24 35 minutes, 24 seconds launched in the third quarter of last year uh has seen a pretty good adoption with some of the leading brands in India 35:32 35 minutes, 32 seconds like Salesforce, Dell, Infosys uh already uh having initiated work on that platform. 35:40 35 minutes, 40 seconds uh I see a greater adoption of these platform of this Versa platform by a 35:48 35 minutes, 48 seconds larger variety of enterprise customers over the next 12 to 18 months and that would help pivot our uh uh overall 35:58 35 minutes, 58 seconds revenue mix to a significantly higher higher margin product mix. Uh we have also 36:06 36 minutes, 6 seconds work working towards pruning low margin MMS and pass through businesses uh to enable sustained higher margins. 36:16 36 minutes, 16 seconds Uh we are working towards being able to realize higher price uh not just by 36:23 36 minutes, 23 seconds higher margin uh product uh revenue mix but also by able to uh reduce and optimize on a cost of delivery. 36:34 36 minutes, 34 seconds uh repositioning Keystone from just execution company product and a solutiondriven 36:42 36 minutes, 42 seconds organization uh is also happening in a phased manner. 36:48 36 minutes, 48 seconds uh I think w with enhanced focus business generation uh over the next 36:56 36 minutes, 56 seconds over the next uh 12 to 24 months I think uh this business should continue to grow 37:04 37 minutes, 4 seconds at a steady stable revenue growth with enhanced margins in the years to come. 37:09 37 minutes, 9 seconds Can you have Arjun? 37:16 37 minutes, 16 seconds Uh happy to take questions. Uh now actually Nikl uh I I'll also just 37:23 37 minutes, 23 seconds request Yatri sir uh to just share a few words while we put together the question list. Yatric sir it's a pleasure to have you here today. 37:33 37 minutes, 33 seconds Uh if I could request you to just say a few words. Thank you. Thank you Arjun and uh indeed uh very happy and 37:40 37 minutes, 40 seconds privileged to be part of this uh earnings call for CL educate and dexit and all the other businesses and 37:49 37 minutes, 49 seconds companies. Uh as Satya outlined and Nikil specifically covered all the three 37:56 37 minutes, 56 seconds businesses uh have done uh significantly good in terms of directional growth that 38:03 38 minutes, 3 seconds the group wants to pursue uh moving forward. uh talking specifically about uh the dexit global uh yes that's a very 38:12 38 minutes, 12 seconds important vehicle uh for growth uh as we move uh this thing ahead for CL educate group and more particularly as covered 38:21 38 minutes, 21 seconds uh dexit uh is largely a big uh technology platform play uh for the uh 38:28 38 minutes, 28 seconds business and uh the kind of cutting edge uh technology the use of AI including 38:35 38 minutes, 35 seconds some of uh APIifications and robustness that we have actually invested our time and energy in last one year is something 38:43 38 minutes, 43 seconds which is very remarkable and uh this is going to actually uh lead the way to have the kind of accelerated pace and 38:52 38 minutes, 52 seconds the scale of the business for all the three verticals. uh there is a vision of 38:59 38 minutes, 59 seconds uh developing a digital platform which is so modular so flexible at the same 39:05 39 minutes, 5 seconds time it's a large kind of plugand play kind of platform with significantly high UIUX all the businesses of CL educate we 39:15 39 minutes, 15 seconds contemplate and we visualize at some point in time would be operated through that one common large digital platform 39:23 39 minutes, 23 seconds and uh all the uh team members across The entire uh group are significantly uh 39:31 39 minutes, 31 seconds working and very very uh enthused about how to convert this vision into the reality and how do we use the technology 39:39 39 minutes, 39 seconds as a important play for our business model. The financial performance Nikl has already outlined in significant 39:46 39 minutes, 46 seconds detail and while the different businesses have different uh uh color and dimension and nuance of their 39:55 39 minutes, 55 seconds financial performance. One important thing is that as we move forward uh we are looking at building a very strong 40:02 40 minutes, 2 seconds robust and a significantly uh uh consistent and predictable uh business 40:09 40 minutes, 9 seconds model. we are moving towards building an institutional way of dealing with the things and uh all the boards of all the 40:18 40 minutes, 18 seconds companies are significantly uh focused on this aspects of the business. So with those uh remarks uh I wish uh all of you 40:28 40 minutes, 28 seconds very very thank you to be part of this call and also wish all the best to all the members of the team within CL group. 40:38 40 minutes, 38 seconds Over to you Arjun. Thank you so much, Yatrix, sir. But I won't let you go just yet. Uh, as you can well imagine, uh, 40:46 40 minutes, 46 seconds there's a flurry of questions related to DEX. Uh, and I'll throw a few your way if that's okay with you, sir. 40:53 40 minutes, 53 seconds Absolutely. Delighted to take them. 40:56 40 minutes, 56 seconds Thank you so much. Uh, the first one is from one of our regular attendees of our investor calls and a long-term investor with us, Mr. Rahul Bansali. 41:07 41 minutes, 7 seconds uh he's asking if the current controversy surrounding the neat examination opens up new opportunities 41:14 41 minutes, 14 seconds for DEX and what are our plans for conducting such nationwide exams. 41:21 41 minutes, 21 seconds Yeah. So uh uh thanks Rahul for that question. Uh indeed uh that was the first thought uh that came to most of us 41:30 41 minutes, 30 seconds when we read that kind of news and potentially as I understand uh similar incidents had already also happened 41:38 41 minutes, 38 seconds sometime last year or year before. So uh as we see the industry pattern uh things 41:45 41 minutes, 45 seconds are moving uh digital as is the case in most of the other industry and uh technology is going to be the future of 41:53 41 minutes, 53 seconds edtech business and that's why uh it is called edtech and not only education. 41:59 41 minutes, 59 seconds Having said that uh yes it is a significant opportunity and we are today conducting uh examinations for many of 42:08 42 minutes, 8 seconds the market clients including the likes of IRDA as NIL mentioned so as also ICAI Institute of Chartered Accountants of 42:16 42 minutes, 16 seconds India and many other NISM and many other very marquee and very uh very very reputed institutions and government 42:24 42 minutes, 24 seconds bodies in the country. Those are all either 100% digital or into dual mode. 42:31 42 minutes, 31 seconds But we see moving forward the industry is going digital way. all the building blocks including the cutting edge 42:39 42 minutes, 39 seconds technology on surveillance that Nikil outlined which is really really very lightweight very flexible API feedways 42:48 42 minutes, 48 seconds uh completely uh micro finance uh kind of uh uh technology with huge huge use 42:55 42 minutes, 55 seconds of AI is already ready with us. So uh given the mandate uh I assure you that dexit global is fully equipped to deal 43:04 43 minutes, 4 seconds with that kind of uh uh service expectations from client customer. So thank you for that uh the question and 43:11 43 minutes, 11 seconds yes uh as uh the uh team members we have to be clear that we are ready for that. 43:19 43 minutes, 19 seconds Uh thank you Yatri sir. Uh there is a question from Mr. Henil Baryia uh asking 43:27 43 minutes, 27 seconds for a few more details about the DEX business. He's actually sent a list of six questions. So I'll uh I'll just 43:34 43 minutes, 34 seconds throw a few at you initially and then we'll take one them one at a time. Uh first of all uh average duration of 43:42 43 minutes, 42 seconds contracts uh and uh split between private and government based test assessments. 43:49 43 minutes, 49 seconds Yeah. Okay. So uh uh broadly uh broadly I think the mix of government and non-government would be uh government 43:58 43 minutes, 58 seconds close to about 40 45% and remaining 50 55% could be private. 44:05 44 minutes, 5 seconds Uh that's the mix. Having said that the average duration while some contracts they go for 3 years and five years some 44:15 44 minutes, 15 seconds are actually one year some are also instance and order based. So there is no fixed pattern. Different clients have 44:22 44 minutes, 22 seconds different uh requirements and different format in which they operate. 44:28 44 minutes, 28 seconds Right. Uh next question from Mr. Badia is what kind of criteria does the government look uh given the size and 44:36 44 minutes, 36 seconds the scale of the different applicants for these contracts? 44:39 44 minutes, 39 seconds Yeah. So uh uh I think uh partly you already uh uh answered the the question 44:47 44 minutes, 47 seconds itself but yes government contracts definitely and largely happens through RFP process. RFP has two components. One 44:56 44 minutes, 56 seconds is the technical capabilities and other one is the commercial. The weightage to technical and operational resilience is 45:05 45 minutes, 5 seconds generally close to about 65 to 70% with remaining about 35 to 30% to be on the commercial side. Uh in terms of Dexity 45:14 45 minutes, 14 seconds Global's ability to build this kind of RFP is significantly high because a Dexity Global is almost uh 15 years plus 45:24 45 minutes, 24 seconds into this particular business. So in the brand, the visibility, the customer 45:34 45 minutes, 34 seconds relationships and connects those are all very very well established, robust and consistent. 45:41 45 minutes, 41 seconds uh in terms of our uh operational resiliency it's I think I would say it's very very high and because of that 45:49 45 minutes, 49 seconds significant high operational capabilities coupled with high cost efficiencies and operational efficiencies and technology play with 45:58 45 minutes, 58 seconds far and few employees running millions and millions of examinations throughout the country throughout the year 46:06 46 minutes, 6 seconds side we actually score always to be potentially number one in terms of commercials also because we are a very 46:13 46 minutes, 13 seconds lean mean organization not heavily invested no major legacy cost and 46:19 46 minutes, 19 seconds technology was our first uh uh thinking response in anything that we do I think cost structures is also very efficient 46:27 46 minutes, 27 seconds so in both accounts technology and commercials our ability to win over different contracts is very very high 46:37 46 minutes, 37 seconds thank you Yatri sir as you can imagine with your presence uh questions on dexit are are coming thick and fast. U there's 46:45 46 minutes, 45 seconds a question on how does the profitability compare between private and and government uh contracts. 46:53 46 minutes, 53 seconds Yeah. Well uh uh this is too nuanced a question uh because whether it is government or private uh it's not that 47:02 47 minutes, 2 seconds there's a significant difference in the prices at which we undertake the contract and important part to it is 47:09 47 minutes, 9 seconds that ultimately every market is a price sensitive market and there are new entrance even in the assessment space as 47:18 47 minutes, 18 seconds we speak with potentially uh dexit and one more candidate controlling potentially 80 85% plus of the overall 47:27 47 minutes, 27 seconds market. But having said that, that dominant position can always be challenged by new kids on the block. So 47:35 47 minutes, 35 seconds we are always very watchful, careful about how they actually potentially behave and operate in the market and we 47:43 47 minutes, 43 seconds are always remaining on our toes and we want to always be two steps ahead of everyone when it comes to our 47:50 47 minutes, 50 seconds efficiencies and ability to do uh cutting edge technology and right pricing. 47:56 47 minutes, 56 seconds Uh thank you Yik. U there are many more questions for you. I I'm sorry. Uh I'm 48:04 48 minutes, 4 seconds going to request you to hog the limelight for a little bit longer. U there's a question on uh have we started 48:12 48 minutes, 12 seconds seeding corporate signups in DEXIT for tech test assessments and uh there's another question on u with international 48:22 48 minutes, 22 seconds universities coming into India with remote campuses uh how competitive is DEXIT in that space and what are our plans in that space? 48:31 48 minutes, 31 seconds Yeah. So I think Nikl did cover uh in one of his bullets in the slide dedicated to techiting but yes 48:39 48 minutes, 39 seconds corporates has been one uh important area where we are actually approaching but uh I'll just uh request Satya to 48:48 48 minutes, 48 seconds just uh help me and or augment my thought process. But when we go and approach corporates, it is not only the assessment that we actually want to 48:57 48 minutes, 57 seconds offer, but it's a whole lot of other things like the uh L&D skills that we possess or the uh content that we have or my SATi that was outlined somewhere. 49:07 49 minutes, 7 seconds These are I think the product offerings to the corporates assessment and the technology capability is only one uh uh 49:15 49 minutes, 15 seconds augmented joint piece into the offerings to the corporate. But yes, corporate is one customer segment that is going to 49:22 49 minutes, 22 seconds actually help scale up our business in next 12 or 24 months. The second question was about uh uh international 49:31 49 minutes, 31 seconds play. Uh Nikl did mention about early initiatives to have global footprints. 49:37 49 minutes, 37 seconds uh no business today can not think going global more particularly because we are a completely indigenous homegrown India 49:46 49 minutes, 46 seconds India kind of organization and that gives us a very different uh uh cost efficiencies and capabilities till the 49:55 49 minutes, 55 seconds time our skills are there our cost efficiencies are there are people who are actually looking to us very very seriously helping them take this 50:04 50 minutes, 4 seconds particular entire technology play outside market we are in the early discussions and at right time I think 50:11 50 minutes, 11 seconds we'll able we'll be able to come back and communicate to you with a detailed business plan would you like to mention 50:18 50 minutes, 18 seconds something surrounding corporates you have mentioned sir uh but just to append to that thought uh uh there are 50:27 50 minutes, 27 seconds uh two specific use cases with the corporates one is the assessments for recruitment into the corporates from 50:35 50 minutes, 35 seconds campuses that is something as a pilot is underway uh like it got covered in in one of the slides of Nikl. However, more 50:43 50 minutes, 43 seconds importantly as uh Katri was mentioning inside the corporate or the professional journey uh a few corporates are al 50:51 50 minutes, 51 seconds already beginning to do pilots with us of assessments using forces 50:58 50 minutes, 58 seconds for promotion within the organization and career development. So the assessments will also be supplemented 51:05 51 minutes, 5 seconds with learning and development module which we will deliver to the corporates. 51:10 51 minutes, 10 seconds So it's a very rich large scalable use case uh as a partner to the business leaders or HR leaders. However, it will 51:18 51 minutes, 18 seconds it will grow over a period of next four to 12 quarters. Back to you Arjun. 51:27 51 minutes, 27 seconds Thanks Sya. Um there are uh while I do have you I'll I'll just also take up 51:34 51 minutes, 34 seconds there's a slew of questions from three or four different individuals Nita Dh 51:42 51 minutes, 42 seconds and Rahul as well have asked about the fundraising plans that we had spoken about previously in the last couple of 51:49 51 minutes, 49 seconds quarters where we are on those and uh any specific updates on the same 51:57 51 minutes, 57 seconds uh Arjun if you you've thrown that at me. Yes please. Thank you. 52:02 52 minutes, 2 seconds Okay. Okay. So I think I would like to uh mention that uh in the current scenario on the fundraising part we are 52:10 52 minutes, 10 seconds on a slight pause given the overall environment as you all know. However, the the work towards that happening in a 52:19 52 minutes, 19 seconds manner in an environment where the fundraising is of value at the right valuation and it it can bring in bring 52:28 52 minutes, 28 seconds in further uh acceleration to the business. that is uh uppermost in the minds of the boards at both the entities 52:37 52 minutes, 37 seconds and uh we will keep you updated as we go into the next quarter or two on what is the exact steps that we are doing. 52:46 52 minutes, 46 seconds Right. Thank you Satya. Uh there's a specific question from Mr. Pratik Giri about the losses from our discontinued 52:54 52 minutes, 54 seconds operation if they are over or we should expect any in the success in successive quarters. The bulk of those are done. 53:02 53 minutes, 2 seconds Pratik if there might be a little smattering of it in Q1 of of this financial year but beyond that we don't 53:09 53 minutes, 9 seconds expect to see uh any further losses coming in the discontinuing operations. Uh there's also a question from Mr. 53:19 53 minutes, 19 seconds Subraat Das uh requesting an update on our plans for Talivate. Nikil, may I request you to please take that? 53:27 53 minutes, 27 seconds Yeah, I'll take that. 53:29 53 minutes, 29 seconds uh just so I have uh done the internal product 53:38 53 minutes, 38 seconds testing uh and the initial go to market engagements and initial pilots with a 53:47 53 minutes, 47 seconds few chosen set of corporates is currently underway. I think uh we have 53:55 53 minutes, 55 seconds about three or four corporates who have signed up and are getting enabled. 54:03 54 minutes, 3 seconds I think our goal uh over the next few quarters is to be able to sign up and 54:10 54 minutes, 10 seconds list about 8 to 10 corporates about 100 odd jobs and uh test the efficacy and 54:18 54 minutes, 18 seconds the MVP version of the pilot before we scale it up on a larger scale. 54:26 54 minutes, 26 seconds Right. Thanks Nikl. Uh there's a question from Samir Jooshi on access to a quarteronquarter 54:33 54 minutes, 33 seconds performance uh for each business. Uh Samir, you'll get that in the segment revenue sheet. It's sheet number four of 54:41 54 minutes, 41 seconds our consolidated financials that we've uploaded onto the website. uh you'll see the segmented revenue for the entire 54:49 54 minutes, 49 seconds year and you'll be able to see that for uh the quarter most recently concluded and the December quarter and uh you will 54:58 54 minutes, 58 seconds also be able to access that in the halfearly report as well. So it'll give you the two previous quarters before 55:05 55 minutes, 5 seconds that. Uh there's a question on our plans to sell uh some of our the assets that 55:11 55 minutes, 11 seconds are on our books the land assets. uh we continue to look for uh opportunities in 55:18 55 minutes, 18 seconds that space. Uh if we can get something at at the right price as and when we have a specific update, we will share it 55:27 55 minutes, 27 seconds with you. But yes, we continue to look at those offers as as and when they come our way. And we have a team of people 55:34 55 minutes, 34 seconds who is working on on trying to get us uh a buyer for those uh specific land assets where we are looking to sell 55:42 55 minutes, 42 seconds especially the plot of land that we have in Rayur which was a wild school. 55:51 55 minutes, 51 seconds U moving on there are some questions on the edtech business. Uh Gotham I may may I bring you in for some of those? 56:04 56 minutes, 4 seconds Uh GP if I'm audible if you could just confirm. 56:08 56 minutes, 8 seconds Yeah, you're audible. Can you just repeat? I have some issues in the audio. 56:13 56 minutes, 13 seconds Yeah, there's a set of questions on the uh edtech business. if you can please provide a little bit of business insight 56:20 56 minutes, 20 seconds in terms of how we're doing across MBA law and CUTT uh where do you see more headwinds and 56:29 56 minutes, 29 seconds uh industrywide how that is moving uh there there are a host of other questions but maybe I'll just request you to start with these and 56:37 56 minutes, 37 seconds then I'll come back with okay so so let me start with the industry first Ajun and if I miss out on 56:43 56 minutes, 43 seconds something just remind me please Now, now uh unfortunately our industry is not an 56:50 56 minutes, 50 seconds organized one and very little authentic data is available. But whatever data we have from uh from from the market 56:57 56 minutes, 57 seconds sources effectively is telling us that practically everyone in the industry is facing headwinds uh whether it is in the 57:04 57 minutes, 4 seconds domain of MBA law or BBIPM or CO either the headwinds are in terms of the numbers or in terms of the pricing or in 57:12 57 minutes, 12 seconds both effectively it is boiling down to the fact that in the industry today there are no entry barriers. uh earlier 57:20 57 minutes, 20 seconds if we go back four five years ago uh to to even start the business you had to make some investment today all you need to do is open a channel on the YouTube 57:28 57 minutes, 28 seconds and and you you can start your business so the entry barriers have collapsed completely and which also means that people are willing to sell to sell 57:37 57 minutes, 37 seconds programs at a very low price initially and which is what is impacting many of us so so what has happened is that while 57:44 57 minutes, 44 seconds we as an organization have been able to hold on or to increase our numbers depending on the segment trend that the fact remain that the product mix has 57:52 57 minutes, 52 seconds changed significantly and hence our average the ALPO or the average revenue per user has come down. If you look at 57:59 57 minutes, 59 seconds the specific domains by and large the UG ones are the UG segment which is low BB IPM. This is where we are either growing 58:06 58 minutes, 6 seconds or holding on to numbers. MBA we have grown numbers but at a much lower Apo because of the product exchange. The critical difference to understand 58:15 58 minutes, 15 seconds between a MBA program versus a UG or the law BB IPM program is an MBA program typically self-funded. So a student 58:23 58 minutes, 23 seconds himself or herself is paying the fees and there they tend to be a little conservative and they look at options uh 58:30 58 minutes, 30 seconds and and and hence you you find that as far as MBA is concerned there's a larger number of student that we attracting towards chess series the full product 58:40 58 minutes, 40 seconds the full program which was classes chess series doubts online offline everything combined the the standard thali offering 58:47 58 minutes, 47 seconds is something which is under pressure across okay uh however when we go to the the UG side which is log DVI APM. This 58:54 58 minutes, 54 seconds is a place where typically the parent pays and they are the ones who are actually willing to pay an extra amount to make sure they go to the right place 59:02 59 minutes, 2 seconds and they don't want to compromise on quality. So this is where we have been able to hold on to our prices or increase our price in some cases also 59:10 59 minutes, 10 seconds and this is where we have seen an increase in numbers and going forward we see a greater uh let's say increase in 59:17 59 minutes, 17 seconds in the UG segment law BBI IPM as compared to the NBA segment. MBA we will continue growing numbers but as a as a 59:25 59 minutes, 25 seconds revenue in terms of the revenue it is likely to either stay where it is or go a little down purely because of the fact 59:32 59 minutes, 32 seconds that the the products which are being asked for now or the which are the preferred program are the smaller components as an organization we have 59:41 59 minutes, 41 seconds created those programs where a student who wants to do only one part of the program uh preparation can do it whether 59:49 59 minutes, 49 seconds it is uh NBA law bip there's available we see the biggest uptake of this in the domain of MBA only so that's the overall 59:57 59 minutes, 57 seconds industry scenario can you repeat the other questions yeah if you give a little bit of specific business insight across MBA law 1:00:05 1 hour, 5 seconds and C where do you see more headwinds and yeah I think I assume I've covered that yeah and uh any specific commentary on 1:00:15 1 hour, 15 seconds the disruption caused by physics walla uh and if we have any plans uh to in terms of 1:00:25 1 hour, 25 seconds high volume disruption and uh how we intend to combat this kind of a disruption. 1:00:34 1 hour, 34 seconds Okay. So, so, so physics kind of players are not really competing with us. 1:00:38 1 hour, 38 seconds They're at a much lower price point and that is also not the focus area given that the market size of our our products is much lower. Uh their basic focus 1:00:47 1 hour, 47 seconds appears to be towards tution. uh J ne which are which are markets of 10 lakh plus and off they have ventured into the 1:00:54 1 hour, 54 seconds government exam where the market is of the order of 50 lakh to 1 cr okay however they have program which are competing with us but at a very low 1:01:03 1 hour, 1 minute, 3 seconds price point and we don't see significant let's say traction for them what we have seen by and large is that students who 1:01:10 1 hour, 1 minute, 10 seconds are enrolled with us also tend to take one of their programs because it is coming virtually for free okay so so that is one part however 1:01:19 1 hour, 1 minute, 19 seconds We would not want to work on this assumption only and say there no one will go there. The fact is there's a segment which is willing to go for that 1:01:27 1 hour, 1 minute, 27 seconds kind of a program. So last year we had experimented and launched a couple of programs of the same order not at the 1:01:34 1 hour, 1 minute, 34 seconds same price level maybe about 50% higher than than physics but but yes maybe about one third of our regular price. So 1:01:43 1 hour, 1 minute, 43 seconds those are the program which have shown us good traction and we are going all out for that. Those kind of programs will be there again they will be adding 1:01:50 1 hour, 1 minute, 50 seconds to the re to the numbers but they are unlikely to add to bottom line significantly or to the revenue significantly. 1:01:59 1 hour, 1 minute, 59 seconds Thanks. Uh there are follow-up questions also in terms of what what have we done 1:02:05 1 hour, 2 minutes, 5 seconds from a cost rationalization perspective to improve the profitability in the edtech segment. 1:02:13 1 hour, 2 minutes, 13 seconds See one of the things okay from a you talked about AI also let me take that up along with this answer okay so the first 1:02:21 1 hour, 2 minutes, 21 seconds thing is AI is a is is also a tool that is helpful for us so so so from a content generation from a backend 1:02:29 1 hour, 2 minutes, 29 seconds perspective from a process perspective AI is something which we have started deploying and that is the way we'll be able to also cut down our cost as we go 1:02:36 1 hour, 2 minutes, 36 seconds along on the other side personalization is significantly dependent on AI where I'm able to identify the specific requirements of a student who's studying 1:02:44 1 hour, 2 minutes, 44 seconds with us and suggest the the right program for the student or the right inputs for the student to be able to improve his or her performance. So so AI 1:02:53 1 hour, 2 minutes, 53 seconds is a is a tool that we are using personalization is is something which is on and we are doing a few experiments and we and in the next one month or so 1:03:02 1 hour, 3 minutes, 2 seconds we will be launching program which will give student the complete freedom to prepare the way they want. uh that will be initial pilot if successful we'll 1:03:10 1 hour, 3 minutes, 10 seconds roll it out to all the other uh programs as well as all centers in India. 1:03:16 1 hour, 3 minutes, 16 seconds Thanks GP. Uh Satya there's a question on uh a few more details on how the ED cell empanelment will impact us. Is that something you'd like to take? 1:03:28 1 hour, 3 minutes, 28 seconds Uh maybe I can make a couple of summary comments. Uh Arjun uh and this is uh you know the 1:03:37 1 hour, 3 minutes, 37 seconds uh India has to meet its large uh goal of gross enrollment ratio going from 30% 1:03:46 1 hour, 3 minutes, 46 seconds to 50% of kids graduating out of class 12th. In order to do that some specialized uh organizations like us we 1:03:55 1 hour, 3 minutes, 55 seconds have been empanled. Now the introductory letters of that uh will reach all the 200 universities and we have already 1:04:03 1 hour, 4 minutes, 3 seconds been uh in conversations with many of them. We work with many of them in DEX and CL etc. This becomes an additional deepening of that relationship 1:04:11 1 hour, 4 minutes, 11 seconds opportunity from uh working for their enrollments working for their uh uh 1:04:19 1 hour, 4 minutes, 19 seconds design and development and deployment of online programs. If the university is not familiar with that as a as a as a 1:04:26 1 hour, 4 minutes, 26 seconds tool, as you know, we took a majority taken 361DM that comes in for uh 1:04:33 1 hour, 4 minutes, 33 seconds relevance here. And number three is the career prep, job readiness, preparation 1:04:40 1 hour, 4 minutes, 40 seconds and getting onto the job. Those are the new value added services that you can we can provide to the universities. So the 1:04:49 1 hour, 4 minutes, 49 seconds point that Nikl was making about the pivoting of the business to become a little bit more greater percentage coming from institutional for any one of 1:04:58 1 hour, 4 minutes, 58 seconds these three four business units is a possibility more I think as we go past the next quarter we'll keep updating you 1:05:06 1 hour, 5 minutes, 6 seconds right thank you Satya uh Yatri sir if I could just bring you back for a minute there's a question from Mr. Rahul Bansali uh on uh Dr. 1:05:17 1 hour, 5 minutes, 17 seconds Jerry is coming on board as the new CEO and MD of Dexit and if there are uh any 1:05:24 1 hour, 5 minutes, 24 seconds lowhanging fruits that can meaningfully change uh you know boost the trajectory for DEXIT going forward. Uh and also 1:05:33 1 hour, 5 minutes, 33 seconds while I have you for a quick second uh Mr. Helia 1:05:43 1 hour, 5 minutes, 43 seconds would like to know and how how our order book uh sits and if we can explain how that works but why it is not 100% 1:05:52 1 hour, 5 minutes, 52 seconds revenue if there's 100% order book rollover 80% order book rollover. 1:05:58 1 hour, 5 minutes, 58 seconds Okay. Sure. So uh I think uh Dr. Aba Jere comes from a very very uh 1:06:04 1 hour, 6 minutes, 4 seconds significantly experienced and well uh nuanced background. Uh he's also a face 1:06:11 1 hour, 6 minutes, 11 seconds uh known to most of the people in the education sector more particularly in the schools college I mean in the 1:06:18 1 hour, 6 minutes, 18 seconds colleges and universities. So the kind of uh experience and relationships that he has uh because he was working as vice 1:06:27 1 hour, 6 minutes, 27 seconds chairman of AICT and he has lots and lots of understanding of uh how different universities and colleges they 1:06:34 1 hour, 6 minutes, 34 seconds potentially operate. So that is one important area of growth uh not only for 1:06:41 1 hour, 6 minutes, 41 seconds DEX IT but overall for the CL entire CL educate group. So that's where he comes for a significant value addition to us. 1:06:50 1 hour, 6 minutes, 50 seconds So that that's the answer to question number one. Uh second one is while 8085% 1:06:57 1 hour, 6 minutes, 57 seconds Nikl mentioned is already the uh coverage ratio as we start the year in FY2627. 1:07:05 1 hour, 7 minutes, 5 seconds uh ultimately uh uh the way we look at that business is uh we don't uh just uh 1:07:12 1 hour, 7 minutes, 12 seconds uh go after the order for the current financial year but we always go for a very robust uh uh rollover for the next 1:07:20 1 hour, 7 minutes, 20 seconds financial year. So the efforts during FI 2627 would not only be to service these uh 80 1:07:27 1 hour, 7 minutes, 27 seconds 85% of the order book what we have in hand but also to start next year with the equal robust number. So the 1:07:36 1 hour, 7 minutes, 36 seconds marketing business development efforts are always targeted to a significantly higher than what we actually recognize 1:07:43 1 hour, 7 minutes, 43 seconds in the books as the revenue. Also as Nikl mentioned if you recall that sometimes it is the or rather most of 1:07:51 1 hour, 7 minutes, 51 seconds the time it is a client and customers priority and their timetable with which the actual examination takes place. So 1:07:59 1 hour, 7 minutes, 59 seconds sometimes you have the order in hand but you're not able to successfully convert into the uh balance sheet revenue because exams are just uh spilled over 1:08:08 1 hour, 8 minutes, 8 seconds from one quarter to another quarter. So on the cusp of March is always the case that you have the order but the revenue will be booked in the subsequent 1:08:16 1 hour, 8 minutes, 16 seconds quarter. That's how the industry behaves. 1:08:20 1 hour, 8 minutes, 20 seconds Thank you Yatri sir. Uh there's a question from Mr. Samir Jooshi on the cash and bank balances on our books and 1:08:28 1 hour, 8 minutes, 28 seconds there was a question earlier uh on uh on our uh on the current liabilities that 1:08:36 1 hour, 8 minutes, 36 seconds we that we have and how they have changed from last year. Uh the reason I'll take them up together is because 1:08:43 1 hour, 8 minutes, 43 seconds the answers are related. Uh if you recall as part of our transition from uh the acquisition when we were moving from 1:08:53 1 hour, 8 minutes, 53 seconds NCIT uh acquisition from under the NSC investments umbrella to Dexit Global 1:09:00 1 hour, 9 minutes under the CL educate umbrella. There was a certain amount of cash left on the balance sheet which uh NSC was unable to 1:09:09 1 hour, 9 minutes, 9 seconds upstream because there were insufficient reserves at that point in time. So a capital reduction scheme needed to be 1:09:16 1 hour, 9 minutes, 16 seconds filed which was going through the NCT route and uh it is now at a stage where the order is reserved and uh the next 1:09:24 1 hour, 9 minutes, 24 seconds date of hearing is actually tomorrow which is 50th May. uh that cash that was left behind was approximately to the 1:09:32 1 hour, 9 minutes, 32 seconds tune of about 182 crores and it has generated interest uh during the time it has been with us for almost a year to 1:09:41 1 hour, 9 minutes, 41 seconds the tune of about Kores as on date. So and at the time of closing of these financials it was about 11 and a half 1:09:50 1 hour, 9 minutes, 50 seconds crores or so. So about 193 194 Kores of the cash that you see on our balance 1:09:56 1 hour, 9 minutes, 56 seconds sheet uh belongs to NSC which will get cancelled off when the capital reduction scheme is concluded and knocked off 1:10:04 1 hour, 10 minutes, 4 seconds against the preference shares and will be upstream to NSC uh will be transferred will be upstream 1:10:13 1 hour, 10 minutes, 13 seconds from DEXIT to CL and then transferred from CL to NSC investments hopefully over the course of this year which has 1:10:20 1 hour, 10 minutes, 20 seconds resulted lost me for a second. Uh so I'll just 1:10:33 1 hour, 10 minutes, 33 seconds repeat what I what I said last. Uh the capital reduction scheme is expected to be concluded soon. So it has now moved 1:10:42 1 hour, 10 minutes, 42 seconds from a non-current to a current liability and we hope to take that to closure at the earliest possible. Uh and 1:10:50 1 hour, 10 minutes, 50 seconds yeah that 1:11:01 1 hour, 11 minutes, 1 second move on to the last question for the day which is on our MK business. Uh Nikl there's a question on uh how Versa will 1:11:09 1 hour, 11 minutes, 9 seconds impact our MK business in North America and what are our specific plans for that region. Uh 1:11:17 1 hour, 11 minutes, 17 seconds so see the way I will take that is Versa 1:11:24 1 hour, 11 minutes, 24 seconds will impact uh the way marketing services business gets done across the 1:11:31 1 hour, 11 minutes, 31 seconds globe uh whether it is in India APAC North America. Uh so after the launch 1:11:38 1 hour, 11 minutes, 38 seconds last time in September October we have been started doing small pilots with three or four customers including 1:11:47 1 hour, 11 minutes, 47 seconds Salesforce, Dell and now Infosys and uh we have received a positive uh thumbs up from most of them. 1:11:58 1 hour, 11 minutes, 58 seconds uh the deployment of Versa enables uh these customers to engage with their 1:12:06 1 hour, 12 minutes, 6 seconds customers and potential customers at a fraction of a cost uh than what they earlier were able to do especially for enterprise sales customers. 1:12:17 1 hour, 12 minutes, 17 seconds uh but I think how quickly it scales up uh and how quickly it translates into revenues uh and at what scale and 1:12:26 1 hour, 12 minutes, 26 seconds magnitude I think uh the next four to six quarters will decide. Incidentally, the work we are doing with Salesforce uh 1:12:34 1 hour, 12 minutes, 34 seconds is for the North America market, Canada to be specific. 1:12:38 1 hour, 12 minutes, 38 seconds uh and I think uh the yield and the results for the first 3 months are 1:12:45 1 hour, 12 minutes, 45 seconds positive and uh we expect and are hopeful that it will scale up not just from Canada to the uh hardcore US market 1:12:54 1 hour, 12 minutes, 54 seconds over the next couple of quarters uh as we uh keep delivering outcomes to uh to the relevant product teams in Canada. 1:13:14 1 hour, 13 minutes, 14 seconds Okay Arjun and thank you everyone for joining today's call. Uh if you have any 1:13:22 1 hour, 13 minutes, 22 seconds questions that were left unanswered, please feel free to get in touch with me or my team and we'll be happy to them. 1:13:31 1 hour, 13 minutes, 31 seconds Thank you everyone and have a good uh