Dc Infotech And Communication Limited — Q4 FY26

Dc Infotech And Communication Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=6GwJAedsVTA Published: 11 days ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the DC Info Techch and Communications Limited Q4 and FI26 awnings conference call. As a reminder, 0:12 12 seconds all participant lines will be in the listenon only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:20 20 seconds you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:27 27 seconds This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions and expectations of the company 0:34 34 seconds as on date of this call. These statements are not the guarantee of future performance and involve risks and uncertaintities that are difficult to 0:42 42 seconds predict. Today from the management side we have with us Mr. Chaitan Kumar Tempia managing director, Mr. Dvindra Syani, 0:50 50 seconds full-time director and Mr. Push Sha, chief financial officer. I would now like to hand the conference over to Mr. 0:56 56 seconds Jayan Kumar Kimaria, managing director from DC infoch and communication submitted. Thank you and over to you sir. 1:04 1 minute, 4 seconds Thank you. 1:07 1 minute, 7 seconds Good afternoon everyone and a very warm welcome to DC Infoch and Communication Limiteds earning conference call for the 1:16 1 minute, 16 seconds fourth quarter and the full year ended 31st March 2026. 1:23 1 minute, 23 seconds I would like to thank you all our investors, analysts and stakeholders for joining us today and for your continued support and trust in us. 1:36 1 minute, 36 seconds Since our inception in 1998, DV Infoch has continuously evolved alongside the technology landscape. 1:48 1 minute, 48 seconds What began as a product focused technology business has transformed into a diversified solution technology 1:58 1 minute, 58 seconds platform serving enterprises, government organizations, system integrators and 2:04 2 minutes, 4 seconds service providers, channel partners across India and international markets. 2:11 2 minutes, 11 seconds Today DC Infoch operates through three complimentary technology pillars namely networking which contributes 2:20 2 minutes, 20 seconds approximately 30% of our revenue unified communication and collaboration tools which is another 36% 2:29 2 minutes, 29 seconds and cyber security solutions which is 27% of our revenue. 2:35 2 minutes, 35 seconds These pillars remain the foundation of our business. 2:39 2 minutes, 39 seconds However, our growth strategy is increasingly focused on four high priority technology themes. 2:47 2 minutes, 47 seconds Artificial intelligence, cyber security, cloud transformation and digital infrastructure. 2:56 2 minutes, 56 seconds Through our ecosystem of global technology partners, we participate across AI ready networking, cloud 3:05 3 minutes, 5 seconds connectivity, cyber security, managed services, data center infrastructure, observability, 3:13 3 minutes, 13 seconds collaboration platforms and AI enabled software solutions. 3:19 3 minutes, 19 seconds We believe one of the most significant opportunities emerging globally is rapidly buildout of AI infrastructure. 3:28 3 minutes, 28 seconds AI adoption is accelerating demand for AI ready data centers, high speeded networking, cloud infrastructure, cyber 3:37 3 minutes, 37 seconds security solution, observative platforms, intelligent automation and advanced data management solutions. 3:46 3 minutes, 46 seconds Importantly through our technology ecosystem, we possess the capability to participate 3:53 3 minutes, 53 seconds across a large portion of infrastructure stack required to build a modern AI ready digital environments and data centers. 4:04 4 minutes, 4 seconds Cyber security has evolved from technology requirement into a board level strategic priority. 4:12 4 minutes, 12 seconds Cloud transformation remains a major growth catalyst. As organization are increasingly adopting hybrid or 4:19 4 minutes, 19 seconds multicloud environments, customers are increasingly seeking partners capable of integrating best of 4:27 4 minutes, 27 seconds the breed technologies across AI, cyber security, cloud networking, communication and data center 4:35 4 minutes, 35 seconds environments while providing an ongoing management and support. This shift aligns directly with the seed for sex trend. 4:46 4 minutes, 46 seconds During the financial year 26, Crystal upgraded our longtime credit rating from triple B minus to triple B with a stable outlook. 4:57 4 minutes, 57 seconds Our UI subsidiary has become operational and achieved a world local content partner status with a Aviation Group. 5:06 5 minutes, 6 seconds We also formalized a three-year procurement arrangement with Tata Communications Limited and we are recognized for third consecutive year by 5:16 5 minutes, 16 seconds financial time bank stat as the high growth company across Asia Pacific. 5:23 5 minutes, 23 seconds In a financial performance revenue for FI26 stood at 736.97 5:30 5 minutes, 30 seconds crores that is 736.97 crores representing a growth of 32.6% 5:38 5 minutes, 38 seconds yearonear stood at rupees 21.21 crores growing 5:45 5 minutes, 45 seconds 46.3% year on year. 5:49 5 minutes, 49 seconds The business continues to benefit from a stronger operating leverage, improved profitability and increasing 5:57 5 minutes, 57 seconds contribution from higher value solution and services. 6:02 6 minutes, 2 seconds As we enter financial year 27 with a strong momentum and clearly defined strategic road map, our first strategic 6:11 6 minutes, 11 seconds priority is increasing the contribution of services, software subscribation, manage offerings and recurring revenue streams. 6:22 6 minutes, 22 seconds We view managed services as a major strategic growth engine that complements our technology portfolio and deepens our customer engagement. 6:32 6 minutes, 32 seconds Our second strategic priority is expanding our participation in AI, cloud and digital infrastructure opportunity 6:41 6 minutes, 41 seconds as enterprises and government accelerate AI adoption and cloud modernization initiatives. 6:48 6 minutes, 48 seconds Demand for secure networking, cyber security, communication platforms and observatory tools, cloud infrastructure, 6:56 6 minutes, 56 seconds managed services and data center solutions is expected to continue growing. Our UI subsidiary continues to 7:05 7 minutes, 5 seconds build a meaningful customer relationship across CC regions. While business activity experience a temporary 7:13 7 minutes, 13 seconds moderation due to geopolitical developments, engagement levels remain encouraging and our opportunity pipeline continues to strengthen. 7:24 7 minutes, 24 seconds Our channel ecosystem has expanded to more than 2,000 touch points across India, enabling rapid scaling of new technologies nationwide. 7:36 7 minutes, 36 seconds Lastly, we believe that the technology sector is entering a new multi-year investment cycle driven by artificial 7:44 7 minutes, 44 seconds intelligence, cyber security, cloud transformation and digital infrastructure and we at DC infoch is 7:52 7 minutes, 52 seconds positioned at this introduction intersection of all this four. 7:59 7 minutes, 59 seconds Thank you. With this we can open the floor for questions. Thank you very much. 8:06 8 minutes, 6 seconds Thank you very much. We will now begin with the question and answer session. 8:11 8 minutes, 11 seconds Anyone who wishes to ask a question may press star and one on their touchstone phone. 8:17 8 minutes, 17 seconds If you wish to remove yourself from the question cube, you may press star and two. 8:23 8 minutes, 23 seconds Participants are requested to use handsets while asking your question. 8:28 8 minutes, 28 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 8:49 8 minutes, 49 seconds Participants, if you wish to register for a question, please press star and one 9:37 9 minutes, 37 seconds Your first question comes from the line of Yash Vishwanath with Passoon Exponentials. Please go ahead. 9:44 9 minutes, 44 seconds Uh, hi sir. Am I audible? Yeah, you're audible. Yes. Uh, thank you so much for the opportunity and congratulations on 9:52 9 minutes, 52 seconds great set of numbers. Uh so you have highlighted that uh AI infrastructure will be a key growth pillar for us. Uh 10:00 10 minutes beyond the current opportunities uh where do you see the enterprise AI spending involving uh evolving in uh 10:07 10 minutes, 7 seconds India uh maybe over the next 3 to 5 years and where do we exactly fit uh within the AI value uh chain? uh are we 10:16 10 minutes, 16 seconds positioning primarily as a networking enabler uh as a security uh cyber security partner or a broader AI infrastructure solution provider? 10:29 10 minutes, 29 seconds Okay. Yes. Uh thank you for the question. Uh I think we'll take it two parts. First you I think what I 10:36 10 minutes, 36 seconds understand is uh you are asking me how this AI will uh roll out right? Yes. 10:44 10 minutes, 44 seconds So from what we have been interacting with large enterprises, government, everybody is uh in two phase developing 10:54 10 minutes, 54 seconds some meaningful AI application for that purpose and to use that application. 11:00 11 minutes They are developing the infrastructure required to run that kind of AI in uh application. 11:08 11 minutes, 8 seconds Still uh some have figured out some are developing their own AI tools. that's is 11:14 11 minutes, 14 seconds in still uh nent stage and over a year or two it the picture will get more clearer on terms of how and what each 11:23 11 minutes, 23 seconds organization will adopt AI as well and once that picture gets clear coming to your second portion of the question uh 11:33 11 minutes, 33 seconds so to run that AI model or application or technology whatever you call it they will need an 11:41 11 minutes, 41 seconds infrastructure to support Current infrastructures are not built for running an high power EI 11:48 11 minutes, 48 seconds application. So it could be everything needs to be changed the uh server or the 11:54 11 minutes, 54 seconds network or the uh data center which is required or the endpoint 12:01 12 minutes, 1 second in terms of that uh product and in terms of the usability 12:09 12 minutes, 9 seconds once that AI comes in the security the cloud adoption also plays a wider role. 12:16 12 minutes, 16 seconds So everything is will go through a transformation here uh from what uh products and solutions 12:25 12 minutes, 25 seconds we were carrying. Now we are trying to cover a 360 degrees of of uh what an AI 12:32 12 minutes, 32 seconds ready company or AI data center or AI infrastructure may need mainly or the components are a high 12:41 12 minutes, 41 seconds speed reliable networking a cloud adoption a cyber security solution and what we were missing in terms of the 12:49 12 minutes, 49 seconds compute and uh the compute storage and second was power cooling and uh uh rack 12:58 12 minutes, 58 seconds and stick to if you are a mature. So we are slowly getting into that facade of business also as we go to a customer we 13:07 13 minutes, 7 seconds should be able to give the complete 360deree solution when they are in their journey or helping them to adopt to 13:14 13 minutes, 14 seconds however they plan to be be it a data center or be in an endpoint application. 13:20 13 minutes, 20 seconds So we have some tools which goes into it and in going forward we'll add the complete tools and try to be a uh 13:29 13 minutes, 29 seconds complete give a complete basket of solution to organizations in terms of their uh requirement to adapt to 13:39 13 minutes, 39 seconds uh so another question is uh from customer uh conversations uh over the last uh uh 12 months uh what are the 13:49 13 minutes, 49 seconds biggest cyber security concerns that uh enterprise are currently prioritizing and uh has any uh spending shifted more 13:57 13 minutes, 57 seconds towards cloud security? Is it uh zero trust? Is it uh managed detection or like a DDoS protection? Uh where is the trend going now? 14:10 14 minutes, 10 seconds uh cloud uh for the organizations which have uh adapted to cloud or an hybrid model cloud security uh still remains 14:19 14 minutes, 19 seconds the paramount. Uh uh so that is Zero trust or ZTN what you to call it has been there for around now for a year and 14:28 14 minutes, 28 seconds now adaption is increasing every day for it but with uh AI and AI data centers 14:35 14 minutes, 35 seconds and AI infrastructure coming on managed services with DOS and manageability in terms of data center security is 14:44 14 minutes, 44 seconds something which is uh has seen currently a major traction. ction be the 14:51 14 minutes, 51 seconds hyperscalers who are using it or uh data centers which are created by the capital banks or some organizations who are 14:59 14 minutes, 59 seconds creating their own data centers for them. So uh manage security and datas I 15:07 15 minutes, 7 seconds in last uh six or 12 months I'm seeing lot of people suing interest there are lot of 15:14 15 minutes, 14 seconds uh quotations or RFPs going around for in this uh domain where network performance and DOS is something which 15:23 15 minutes, 23 seconds every organization is looking at making their infra uh as 15:31 15 minutes, 31 seconds h uh and also sir uh uh lastly uh uh we are doing really well in terms of uh 15:38 15 minutes, 38 seconds growth and uh we are on our uh uh way to uh to reach the 1,000 cr aspiration. uh 15:47 15 minutes, 47 seconds uh from an investor point of view uh how should we think at uh working capital intensity uh is there a scope to improve 15:54 15 minutes, 54 seconds the receivables and inventory turns uh and uh uh does growth in enterprise projects uh naturally require higher uh 16:02 16 minutes, 2 seconds working capital requirements see uh improvement is always there's 16:11 16 minutes, 11 seconds room for improvement any moment of time so if you say is Is there scope? Yes, there is scope. Uh how much can we do it 16:21 16 minutes, 21 seconds uh is something which we have to be realistic about since as our journey continues towards that,000 cr desired 16:29 16 minutes, 29 seconds landmark which we have projected over the last couple of calls. So and we are on track to doing it. uh we are entering 16:37 16 minutes, 37 seconds bigger and larger project size and since uh we are of that EI infrastructure pie 16:44 16 minutes, 44 seconds we are trying to contribute and collaborate in multiple uh uh technologies and multiple larger 16:52 16 minutes, 52 seconds projects. This requires a little higher capacity because if you have a one small 16:59 16 minutes, 59 seconds slice sheet go and come out when you are executing a multiple uh things on one project 17:08 17 minutes, 8 seconds obviously the involvement of your capex uh require or sorry uh operating cost or the cost of money or the amount of money 17:17 17 minutes, 17 seconds required is much bigger larger but with uh we can try to optimize it as much as 17:24 17 minutes, 24 seconds possible. The endeavors are also on both the fronts. The look for the top line and see how much we can improve on that what we are doing. 17:34 17 minutes, 34 seconds Correct. Uh so if time permits can I ask another question as well? Uh 17:41 17 minutes, 41 seconds that may be sure. Uh yes sir. Uh could you uh elaborate on uh the rational 17:49 17 minutes, 49 seconds behind choosing J as the first international market? Uh are we targeting distributionled opportunities uh initially or do we see a larger 17:58 17 minutes, 58 seconds opportunity to export our uh cyber security and infrastructure capabilities into the GCC markets? 18:06 18 minutes, 6 seconds There is uh GCC markets uh since of uh see there are two markets we east then 18:14 18 minutes, 14 seconds Singapore and this kind of market and one is the GCC market. So we chose GCC mainly Dubai to be a base out of that to 18:23 18 minutes, 23 seconds address that Gulf and African market which we see that wave of cloud adoption or security they are still lagards in 18:32 18 minutes, 32 seconds terms of African market obviously not the Gulf market. the Gulf market overall 18:39 18 minutes, 39 seconds the way uh for example Saudi or GCC are adopting AI and building infrastructure 18:46 18 minutes, 46 seconds around it the kind of money they're putting it uh we see that there is a potential if we are able to get some 18:53 18 minutes, 53 seconds slice of it it will be a high growth uh for us and there we are not planning to 19:01 19 minutes, 1 second carry forward our distribution there we are trying to be more of a service oriented approach approach more of integrator and services 19:09 19 minutes, 9 seconds or the skill set in the consultancy and services which we have here. We are trying to be there rather than a distribution builder. 19:19 19 minutes, 19 seconds Okay. Uh thank you so much. Uh if I have any other questions I'll join the uh queue again. Thank you for uh answering my question. Thank you. Yes. 19:30 19 minutes, 30 seconds Thank you. 19:32 19 minutes, 32 seconds Participants if you wish to register for a question please press star and then one. 19:38 19 minutes, 38 seconds Your next question comes from Vikrant Sahu with RK advisory. Please go ahead. Yeah. Hi. Uh am I audible to you sir? 19:47 19 minutes, 47 seconds Yeah Vikrant. 19:49 19 minutes, 49 seconds Yeah. Uh hi sir. So my question is uh so uh as of I know that Samsung is basically the uh significant contributor 19:58 19 minutes, 58 seconds to our revenue right. So how does a company evaluate and manage the vendor concentration risk and what initiatives are underway to further diversify our revenue base sir? 20:09 20 minutes, 9 seconds Uh thank you Samsung is one of the key technologies uh uh provided into our 20:16 20 minutes, 16 seconds solution. Uh we do ex uh exclusively Samsung LEDs active LEDs. LEDs are what 20:24 20 minutes, 24 seconds you uh see in boardrooms, meeting rooms, uh auditoriums etc which are adoption. 20:31 20 minutes, 31 seconds So we are exclusive partner for them uh across India where we have a team we can 20:38 20 minutes, 38 seconds do preost sales installation even in the support we have our in-house service center Samsung author service center to 20:46 20 minutes, 46 seconds the only one in India outside the Samsung factory. Uh so uh and in any 20:53 20 minutes, 53 seconds boardroom solution or uh meeting room solution or any digital signage solution 21:00 21 minutes display uh contributes the major cost involved rather than the audios and the 21:08 21 minutes, 8 seconds controllers mixture cables etc. So in terms of revenue if you uh see overall pie Samsung will uh you will see Samsung 21:17 21 minutes, 17 seconds being a major contributor to that revenue pie but other products which are involved are not very that costly. 21:26 21 minutes, 26 seconds uh so Samsung in terms of balancing the OEM uh we uh do we do it exclusively and 21:35 21 minutes, 35 seconds the strength of expertise in terms as I shared in terms of pre-sales installation service which we carry I 21:43 21 minutes, 43 seconds don't think there is any threat or risk there and even if it is there our team is capable of enough of 21:52 21 minutes, 52 seconds handling and diversifying to any uh other brand or technology if demand uh requires at that time currently the 22:00 22 minutes relationships are really good so I don't see any threat as such okay uh sir is it possible for you to 22:09 22 minutes, 9 seconds quantify in the numbers on like uh how much it will be from Samsung sir 22:16 22 minutes, 16 seconds uh overall our exposure to Samsung it should be uh approximately I not 22:23 22 minutes, 23 seconds exact figures there but around 150 3175 crores. 22:27 22 minutes, 27 seconds Okay. Okay. And uh my second question is like uh uh what is the uh progress on the arbus and net uh netcot partnership 22:35 22 minutes, 35 seconds and uh how the company is positioned to capitalize on the uh growing demand for the cyber security and DDOS mitigation solutions. So 22:43 22 minutes, 43 seconds we are uh forcout and arbor we are the most preferred partner in uh this 22:50 22 minutes, 50 seconds geography approximately 60 to 70% business is driven by DC infoch of whatever they do including the 22:59 22 minutes, 59 seconds direct customer like reliance they have which is sold directly by the OEM itself uh whereas even after that direct 23:08 23 minutes, 8 seconds contribution we do the 60 70% of the and relationship is very strong with the 23:15 23 minutes, 15 seconds uh DOS and uh performance management team which includ uh again we have a strong strength in 23:24 23 minutes, 24 seconds terms of engineers who are there to uh sniff an inquiry to understand the customer pain point demonstrate a uh 23:33 23 minutes, 33 seconds solution give a P and then obviously supply support implement and if required we have a team of people who can do the 23:42 23 minutes, 42 seconds DS D2 support for them also. So technically we are uh one I would call it one of the best in this category. 23:53 23 minutes, 53 seconds Okay. I have uh one more question on our partnership. So we have a partnership with uh Sanfur as well, right? So what 24:01 24 minutes, 1 second is the uh like the contribution to the company's expansion uh strategies are basically expansion strategy uh uh for 24:09 24 minutes, 9 seconds Sam4 and uh across our basically Middle East and Africa region sir. 24:15 24 minutes, 15 seconds So we can't say that uh in my opening remark I told middle east uh thankfully we have signed for middle east but 24:23 24 minutes, 23 seconds middle east as we started going around by December January you know the fe from February onwards uh the situation out 24:32 24 minutes, 32 seconds there uh has changed. So there are lot of engagement which has happened but uh the accumulating that to order and 24:40 24 minutes, 40 seconds that's has become on a slow track and currently the overall that market uh 24:47 24 minutes, 47 seconds all organization all everything all the and everything is on a very slow burn priorities of organization and 24:56 24 minutes, 56 seconds government out there currently is not buying anything you relationship with San we have signed up 25:04 25 minutes, 4 seconds but We are not able to get something very notable on table till now. 25:09 25 minutes, 9 seconds Hopefully once the situation stabilizes uh whatever good work we have been doing, we've been talking to people they 25:17 25 minutes, 17 seconds are interested uh we start converting into PU. Okay. And uh I have a one last question. 25:26 25 minutes, 26 seconds So so like we have a 2,000 plus uh channel partners, right? So how is the company align with you know to support our transition for a higher values and solution uh offerings? 25:39 25 minutes, 39 seconds Yeah, as our operations are spread nationally. We have people team across 25:46 25 minutes, 46 seconds 13 14 operations across uh there. We have offices from Delhi, Bangalore, Ahmedabad, Mumbai which is our head 25:54 25 minutes, 54 seconds office and restaurant location in tire two cities. we have one or two sales people and uh our warehousing is 26:02 26 minutes, 2 seconds obviously Mumbai, ADA, Bangalore, Delhi where mother warehouse are there to support that kind of geography and since 26:09 26 minutes, 9 seconds we have been doing this over a couple of decades the network and the operations are already in line. So that system has 26:17 26 minutes, 17 seconds been developed everything is going in a with an auto mode types of thing. 26:25 26 minutes, 25 seconds Okay. Okay. Okay. Sir uh that's all from my side. Best of luck for the future sir. Thank you. Yeah. 26:33 26 minutes, 33 seconds Thank you. The next question comes from the line of Shan Modi with syndicate family office. Please go ahead. 26:40 26 minutes, 40 seconds Uh good afternoon sir. Thanks so much for the opportunity. Uh so my first question to the management is regarding what are the top three priorities for 26:47 26 minutes, 47 seconds FI27 if uh from the management's point of view. 26:53 26 minutes, 53 seconds Thank you Shan. uh top three priorities. 26:57 26 minutes, 57 seconds Yes, top three priorities is uh as I uh asking uh replying to earlier to Yash uh 27:06 27 minutes, 6 seconds complete our AI infrastructure basket that's the one priority which would uh 27:13 27 minutes, 13 seconds to add to our product and technologies which would need by any organization to build their infrastructure. we should 27:22 27 minutes, 22 seconds have the complete bouquet of solutions uh for us that will be the key priority 27:28 27 minutes, 28 seconds for this year. So once we are there so we can gather a larger pie of any order is there. So that's priority number one. 27:39 27 minutes, 39 seconds Priority number two is uh getting into larger projects and more solutiondriven uh orders 27:48 27 minutes, 48 seconds which can help us to obviously with consolidate on the top line and better 27:55 27 minutes, 55 seconds margins also. So that will be the second priority try to see what how much we can pick up on the larger pieces. Three uh 28:05 28 minutes, 5 seconds the third which we will see I would like to keep an eye on the emerging technologies because with AI adoption 28:12 28 minutes, 12 seconds there will be lot of security threats which will is unknown as of today. So we have been studying and talking and 28:21 28 minutes, 21 seconds reading and meeting people understanding how the landscape uh post AI adoption will turn uh turn 28:30 28 minutes, 30 seconds out in terms of security uh which will become the second biggest driver in couple of years. So if we are able to 28:37 28 minutes, 37 seconds get that trend and uh bring the solution to that that will be helpful for the next couple of years as a road driver. 28:47 28 minutes, 47 seconds So these are the three main things out of all other couple of thing I call it these three main as a priority. 28:58 28 minutes, 58 seconds Right sir. Uh my next question to you is somebody. What is the management's long-term epeta margin acceleration as the company's going to shift towards solution offerings? 29:12 29 minutes, 12 seconds Obviously better than this. So whatever we have been we have been improving over last years and uh our management uh 29:20 29 minutes, 20 seconds effort and endeavor is always we are able to keep this trajectory on. 29:26 29 minutes, 26 seconds So if you want to quantify in terms of numbers uh I may not be able to do that but yes what we have been bettering over 29:34 29 minutes, 34 seconds the last few years we will try and continue that same journey or put our efforts that uh the same journey 29:42 29 minutes, 42 seconds continues over the next couple of years right so so um question is so the move 29:51 29 minutes, 51 seconds towards subscription and management managed service models how is that going affect your revenue and margins and 29:58 29 minutes, 58 seconds quality earnings over the period of time. If you could give me some input on that, that would be really great. 30:04 30 minutes, 4 seconds Yeah. So uh what see uh doing one transaction and getting to what 700 odd 30:13 30 minutes, 13 seconds corres becomes difficult every day you go around and start every financial year on 30:21 30 minutes, 21 seconds first April start with zero and then ramp up to your last year previous year numbers and grow beyond that. The uh 30:29 30 minutes, 29 seconds ideal situation is the recurring business and recurring business comes from subscriptions and services where 30:36 30 minutes, 36 seconds it's a yearly cycle. So whatever products or solutions uh which we are carrying, we are trying to see that we 30:44 30 minutes, 44 seconds carry a product or solution which has some recurring revenue. Maybe the subscription revenue or a renewal or a 30:52 30 minutes, 52 seconds services revenue and slowly slowly. So on 1st of April we know okay do we if 30:59 30 minutes, 59 seconds you do anything new yet out of our whole pie x will be auto mode for the next uh 31:09 31 minutes, 9 seconds coming year and that every year that little little ad becomes a bigger auto mode pile of that that's why we are 31:16 31 minutes, 16 seconds focusing on something which is subscriptionbased slash re uh renewal slash um services portion So certain 31:26 31 minutes, 26 seconds portion of our business is uh sure or granted to come and we hunt for the next uh portion of that talk. 31:38 31 minutes, 38 seconds Right. Thank you so much. So that's it from my end. Uh and if I have any further questions I'll just jump back to Thank you S. 31:47 31 minutes, 47 seconds Thank you. The next question comes from Nimsh. 31:59 31 minutes, 59 seconds Sorry to interrupt you to use. Got that. Now, now I'm loud and clear. 32:06 32 minutes, 6 seconds This is much better, sir. Yes. 32:08 32 minutes, 8 seconds Okay. Okay. So, sir, uh thanks first of all, thanks for giving me this opportunity. I have a few questions. Sir 32:16 32 minutes, 16 seconds uh as we see that uh as the business scales how does the management expect the product to services revenue mix to 32:23 32 minutes, 23 seconds evolve and uh what would be the targeted contribution from services over the medium term. 32:33 32 minutes, 33 seconds Okay. As the business scales uh obviously that portion of the pie is increased. If you go a couple of years 32:39 32 minutes, 39 seconds back and check our records, our uh networking used to contribute more than 50% of our business and while the other 32:49 32 minutes, 49 seconds uh two pillars in terms of UCN security was to cons uh contribute another 50%. 32:57 32 minutes, 57 seconds But uh uh over the years uh that networking has shrink to 37 and others to have grown. So this is the trend 33:06 33 minutes, 6 seconds which we'd like to contribute where uh uh our security and services portion is 33:13 33 minutes, 13 seconds something which we are keen on growing in the pie. So we have equal portion of maybe 30 30 and something odd of that 33:22 33 minutes, 22 seconds ratio into our so we are not much dependent on one uh thing. If eventually 33:29 33 minutes, 29 seconds something is goes wrong, we uh our boat is not rocked in terms of that. And uh 33:37 33 minutes, 37 seconds second uh portion of your question uh uh can you repeat that from? 33:43 33 minutes, 43 seconds Yeah. So the targeted contribution from services over the million. 33:47 33 minutes, 47 seconds Okay. uh if you missed seeing our we are approximately uh uh 20% uh comes from software and 33:57 33 minutes, 57 seconds services 80% of our revenue comes from products and solutions. uh our 34:04 34 minutes, 4 seconds aspiration is to take from the 20 to 25% in years to come in couple of years to come in the medium term as you asked. 34:12 34 minutes, 12 seconds Got what? So my next question is so as we see that in uh Q4 F26 there is 34:19 34 minutes, 19 seconds significant increase in expenses. So uh wanted to know the primary factors contributing to this increase and uh 34:27 34 minutes, 27 seconds should investors view these expenses as a recurring investments to support future growth or largely as non-recurring returns. I mean if you 34:35 34 minutes, 35 seconds explain so it's mostly a nonrecurring since there are lot of imports uh which have 34:44 34 minutes, 44 seconds happened and uh it's uh lot of port the big portion is unrealized for its uh 34:52 34 minutes, 52 seconds loss the bills were out open which was closed that will not happen but as a 34:59 34 minutes, 59 seconds book entry uh the dollar uh shot up and as what we are accordingly market into our books as 35:07 35 minutes, 7 seconds part of a smart position. So it is unrealized uh forex exchange is one of 35:13 35 minutes, 13 seconds the major contributor to that and since it's a quarter and lot of payouts are there something of that. So it's nothing 35:22 35 minutes, 22 seconds very recurring and something to as uh the management is not something not to a major worry about it's a one time thing 35:31 35 minutes, 31 seconds uh which generally at the year end the subscription and the closes are there so 35:39 35 minutes, 39 seconds I will not be much worried about this it's a regular financial entries I call it not a 35:48 35 minutes, 48 seconds financial next uh as you can see that uh India's data center capacity may expand and is expanding rapidly you know so what is 35:57 35 minutes, 57 seconds the potential opportunity size for DC imported and what competitive advantages position the company to capitalize on 36:05 36 minutes, 5 seconds this growth trend so India data center story is everywhere 36:12 36 minutes, 12 seconds you can cross for everywhere so it's going to be humongous what is happening with the government giving data center 36:20 36 minutes, 20 seconds relaxation, taxation, holiday. We will be seeing over the next 10, 20 years a 36:27 36 minutes, 27 seconds huge boom in what data centers uh landscape will have from some uh 36:34 36 minutes, 34 seconds hyperscalers like AWS, Google and followed up by Reliance and Adanis will 36:41 36 minutes, 41 seconds be putting in lots and lots of uh money into this. With that will come also an 36:50 36 minutes, 50 seconds opportunity of colum uh and private data center or captive data centers what you call it. That is something which we are 36:59 36 minutes, 59 seconds looking at to target for because the bigger ones will have their own set of people who will be doing it. But the 37:07 37 minutes, 7 seconds captive ones or the colo ones uh uh are something which the infot type 37:14 37 minutes, 14 seconds organization can be looking at and that also with AI adoption 37:21 37 minutes, 21 seconds organization building their own tools around the on the AI platforms we will need that data center and as I was 37:30 37 minutes, 30 seconds answering to other gentlemen earlier we are trying to build a bookie or a solution bouquet which will hover around this 37:39 37 minutes, 39 seconds whatever you need to build one and if any organization is planning we should have every component of that technology 37:48 37 minutes, 48 seconds with us to service that order that's something which we are looking at and 37:55 37 minutes, 55 seconds uh with the print I'm very pretty sure pretty confident uh we are in for some good times got it got it And that's it. 38:06 38 minutes, 6 seconds That's it from the session. Thank you. Thanks so much. 38:11 38 minutes, 11 seconds Thank you. Before we take the next question, a reminder to all the participants, you may press star and then one to ask a question. 38:20 38 minutes, 20 seconds The next follow-up question comes from Yash Vishnat from Prasoon Exponentials. Please go ahead. 38:28 38 minutes, 28 seconds Hi sir. Uh so uh I have a industry question uh to be honest. So as enterprises are uh the 38:37 38 minutes, 37 seconds customers are increasingly preferring strategic uh technology partners you know that have end to-end solutions uh how is the customer buying behavior 38:46 38 minutes, 46 seconds evolved uh over the past couple of quarters and since you are uh you have a broad portfolio across networking cyber 38:53 38 minutes, 53 seconds security uh data uh center solutions uh what percentage of customers are currently engaged with you across 39:00 39 minutes multiple uh solution categories? So uh uh what cross-selling opportunities do we have from the existing customer base? 39:11 39 minutes, 11 seconds Uh uh we get into customers obviously with one product or one pain point or one 39:18 39 minutes, 18 seconds requirement is there and then understanding the uh their ecosystem. 39:24 39 minutes, 24 seconds Obviously there is an always an effort to uh try and crossell another thing. 39:33 39 minutes, 33 seconds There are two different one is some green field where the new infrastructure is coming up or the customer is planning 39:40 39 minutes, 40 seconds to do something new then we are ready to position multiple products or multiple solutions which we have with alignment 39:48 39 minutes, 48 seconds with the uh brand or technology where then if customer would choose that brand or technology comes a second line of 39:56 39 minutes, 56 seconds discussion uh because everybody would not like to go in for one hour depending on that requirement. 40:03 40 minutes, 3 seconds But in existing customer or a brownfield project then it is uh already the infrastructure is there or as some 40:11 40 minutes, 11 seconds components and there are some missing link of uh pain points which we are have and we try to address to that. So it is 40:21 40 minutes, 21 seconds depending on the situation or the project case it's a green field or a brown field accordingly the opportunity 40:28 40 minutes, 28 seconds or the multiple technologies being pitching into account uh depends 40:36 40 minutes, 36 seconds nowadays when if it is a new data center type of requirement then you have a chance to uh 40:45 40 minutes, 45 seconds pitch for multiple things uh which currently is is on a rise otherwise 40:52 40 minutes, 52 seconds there will of brownfield because if people already have something and there is network is growing operators are 40:59 40 minutes, 59 seconds growing endpoints are growing they will face some kind of challenges and they plug that they will like to have some 41:07 41 minutes, 7 seconds solution to that but uh with AI adoption mode we'll see lot of new green field uh 41:16 41 minutes, 16 seconds setup coming up and that will help us to uh sell more than one product or technology into one project. 41:27 41 minutes, 27 seconds Uh and so uh as we are transitioning towards high value solutions and services uh which business segments do 41:34 41 minutes, 34 seconds you uh which business segment do you feel has the greatest potential uh to improve our overall profit uh profitability over the middle income? I 41:42 41 minutes, 42 seconds mean our margins are uh uh uh uh above the uh industry right now. Uh are these 41:49 41 minutes, 49 seconds sustainable or uh can we expect an increase in them uh in the near future? 41:57 41 minutes, 57 seconds 100% our endeavor is to be successful and uh it is sustainable and surely uh 42:05 42 minutes, 5 seconds uh there is always a room to improve and as a uh managing director and our team 42:11 42 minutes, 11 seconds and the whole DC Inffort we are all end uh working toward the same goals to improve it uh every year on year and uh 42:21 42 minutes, 21 seconds I'm pretty sure very confident there is a room for improvement And we are working towards a day and day off. 42:31 42 minutes, 31 seconds All right sir. Uh thank you. Thank you so much uh uh for patient answering my questions. Thank you. Thank you. 42:43 42 minutes, 43 seconds Thank you. 42:50 42 minutes, 50 seconds As there are no further questions from the participants. I now hand the conference over to Mr. Chaitan Kumar Trimaria from BC Infoten Communications Limited for closing comments. 43:02 43 minutes, 2 seconds Thank you. So as India's digital transformation journey is entering as next phase as we discussed one 43:11 43 minutes, 11 seconds increasingly defined by AI intelligence, cyber resilience, cloud first architectures, 43:18 43 minutes, 18 seconds AI ready data sectors, managed services and intelligent communications. 43:24 43 minutes, 24 seconds Today we are evolving from a technology distributor into a technology solution, managed services and a digital infrastructure platform. 43:35 43 minutes, 35 seconds While our revenue growth remains important, our focus has discussed increasingly on improving revenue quality, expanding recurring revenue 43:44 43 minutes, 44 seconds streams, enhancing operating leverage, improving return on capital employed, and driving sustainable earnings growth. 43:53 43 minutes, 53 seconds We remain committed to discipline execution, profitable growth, recurring revenue expansion, and a long-term value creation for all our shareholders. 44:05 44 minutes, 5 seconds Thank you all for your continued trust and support. Thank you. 44:12 44 minutes, 12 seconds Thank you on behalf of DC Infotech and Communications Limited. That concludes this conference. Thank you everyone for 44:20 44 minutes, 20 seconds joining us and you may now disconnect your lines.