Dev Information Technology Limited — Q4 FY26

Dev Information Technology Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=98IAIeTLdbU Published: 6 days ago

0:00 Ladies and gentlemen, good day and welcome to the Q4 FI26 results conference call of Dave Information Technology Limited. As a reminder, all 0:10 10 seconds 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 0:18 18 seconds you need assistance during the conference call, please signal an operator by pressing star then zero on your touchdown phone. Please note that this conference is being recorded. 0:28 28 seconds This conference call may contain forwardl looking statements about the company which are based on the beliefs, opinions and expectation of the company as a date of this call. These statements 0:37 37 seconds are not guarantees of future performance and involve risk and uncertaintities that are difficult to predict. I now hand the conference over to Mr. Hush 0:45 45 seconds Kosavi from Kan Advisor. Thank you and over to you. 0:50 50 seconds Good day. On the behalf of career advisor, I welcome you all to the Q4 apparent conference call of Dave Information Technology Limited. A 0:58 58 seconds management team, we have Mr. Jamin Sha, managing director and CEO. Now I hand over the all to Mr. Jamin Sha for opening remark. Over to you. 1:12 1 minute, 12 seconds Good afternoon everyone and thank you for joining us today for uh DEIT's Q4 FY26 earning conference call. 1:22 1 minute, 22 seconds On behalf of the entire DIY team, I would like to extend a warm welcome to all our investors, analysts, 1:30 1 minute, 30 seconds shareholders and other participants joining us today. We truly appreciate your continued trust, support and interest in our company. 1:42 1 minute, 42 seconds As you all know that BYT has evolved significantly since its inception in 1997. 1:50 1 minute, 50 seconds Today we are a diversified technology service company helping enterprise accelerate their digital transformation 1:58 1 minute, 58 seconds journey through our capability across AI blockchain cyber security cloud services enterprise applications digital 2:07 2 minutes, 7 seconds transformation uh manage IT services and application development which we call end to end IT services 2:17 2 minutes, 17 seconds over the years we have built longstanding customer relationships by combining technology expertise with a 2:25 2 minutes, 25 seconds deep understanding of business requirements. 2:29 2 minutes, 29 seconds As you all know that our philosophy is people first and business always and that is how our customer relationship, 2:37 2 minutes, 37 seconds our customer retainership, our vendor retainership and above all uh our employee retentionship is really strong. 2:48 2 minutes, 48 seconds Our focus has always been on delivering measurable outcomes for our customers while 2:56 2 minutes, 56 seconds maintaining the strong execution rate culture. 3:01 3 minutes, 1 second What a difference differentiates Dave IT in our ability to offer end toend technology solutions supported by strong 3:10 3 minutes, 10 seconds domain expertise, qualitydriven processes and a customer centric 3:16 3 minutes, 16 seconds approach. We work closely with clients to understand their business objectives 3:23 3 minutes, 23 seconds and deliver solutions that improve operational efficiency, strengthen competitiveness, and support 3:32 3 minutes, 32 seconds long-term growth. Our investments in cloud technologies, artificial intelligence, cyber 3:41 3 minutes, 41 seconds securityities, enterprise applications and manage IT services continue to strengthen our positioning in a rapidly evolving uh technology landscape. 3:54 3 minutes, 54 seconds Coming to our uh quarterly performance Q4 FY26 4:00 4 minutes was very important quarter for for the company. If I can take you to what we 4:07 4 minutes, 7 seconds have uh envisased or uh uh strategized when we started uh last financial year 4:15 4 minutes, 15 seconds because of geopolitical situation we uh as a management we decided to focus 4:21 4 minutes, 21 seconds mainly on revenue existence and India market so that our 4:28 4 minutes, 28 seconds revenue growth our existence and our technology focus remain intact 4:37 4 minutes, 37 seconds and that's been uh the case for entire year. 4:42 4 minutes, 42 seconds On a consolidated basis, a total income increased by 8.1% yearonear to rupees 56 cr. 4:52 4 minutes, 52 seconds AITA grew by 68.5% to 5.04 04 cr while emitter margin improved 5:00 5 minutes by 322 basis points to 8.99% compared to 5.77% in the corresponding quarter last year. 5:13 5 minutes, 13 seconds The improvement in profitability reflects our uh sorry uh net profit stored at around 5:21 5 minutes, 21 seconds uh 8.96 cr as against rupees 1.13 cr in quarter FI25. 5:30 5 minutes, 30 seconds The improvement in profitability reflects our continued focus on operational efficiency, discipline 5:37 5 minutes, 37 seconds execution and improving business quality. [clears throat] During the quarter, we continued to 5:44 5 minutes, 44 seconds standard our technology capabilities while maintaining uh healthy momentum on across all the services portfolio which 5:53 5 minutes, 53 seconds is our cloud AI, blockchain, cyber security and data and data center. 6:04 6 minutes, 4 seconds FI 26 was a significant year for entire wave ID on a consolidated basis. We 6:12 6 minutes, 12 seconds reported total income of around 1 uh 190 350 cr reflecting steady growth in a 6:20 6 minutes, 20 seconds dynamic market environment. If you recall, we uh projected around 190 to 6:26 6 minutes, 26 seconds 200 cr uh uh revenue for FY26 6:32 6 minutes, 32 seconds AITA stood to 7.23 cr with a AITA margin 6:37 6 minutes, 37 seconds of 3.74 cr. Here we have uh seen not a 6:44 6 minutes, 44 seconds projected uh uh value which we envision which I'll discuss later on. 6:52 6 minutes, 52 seconds During the year, company reported a net profit of uh rupees 75.60 cr and diluted 7:00 7 minutes uh earning per share of rupees 13.25 which includes an exceptional unutilized 7:07 7 minutes, 7 seconds gain arising from the reclassification of our uh nave accelerator uh investment following its IPO. 7:18 7 minutes, 18 seconds Beyond the reported numbers, FY26 was a uh year of significance, year of 7:25 7 minutes, 25 seconds strengthening our strategic position, expanding technology capabilities, expanding our physical presence, 7:34 7 minutes, 34 seconds deepening client relationships, and building a stronger foundation for future growth. 7:42 7 minutes, 42 seconds several important milestones which we achieved during the year reinforce our long-term growth strategy. 7:51 7 minutes, 51 seconds As you all know that last year during the call uh we have also uh projected 7:58 7 minutes, 58 seconds that we want our physical presence in North America. We want to have more and 8:04 8 minutes, 4 seconds more uh business on our focus uh technological uh uh area called ABCV 8:13 8 minutes, 13 seconds AI, blockchain, cloud, cyber security, data and data center 8:20 8 minutes, 20 seconds to uh strengthen and to uh uh continue that uh uh goal which we set last year 8:28 8 minutes, 28 seconds so that uh we can build stronger presence and stronger business our day in coming years. 8:37 8 minutes, 37 seconds We have uh strategically aligned with uh 8:42 8 minutes, 42 seconds XUS Infoch which is uh USA based uh IT service company and they acquired 25% 8:52 8 minutes, 52 seconds stake of the company uh through market uh uh value from promoters. 8:59 8 minutes, 59 seconds This partnership is expected to strengthen our capabilities in high growth areas such as AI, cyber security, 9:09 9 minutes, 9 seconds international market expansion. As you all know that uh HDS in USA and in UK 9:17 9 minutes, 17 seconds they have strong on-site presence. They do have uh a similar kind of uh services 9:25 9 minutes, 25 seconds which DY has. So it's a very uh natural uh alignment which we have seen as 9:33 9 minutes, 33 seconds compared to other opportunities which we got last year in uh after October and 9:40 9 minutes, 40 seconds then uh we decided that excuse is a right uh uh match for day because we 9:48 9 minutes, 48 seconds want our uh presence in North America market. We want physical uh uh delivery 9:56 9 minutes, 56 seconds capability for our customers so that we can achieve uh more customers. We can 10:02 10 minutes, 2 seconds achieve more uh uh market and we can also achieve more uh profitability for the company. 10:10 10 minutes, 10 seconds Best part for this entire alignment is uh as our focus is also on cyber 10:17 10 minutes, 17 seconds security. Excuse does have acquired a company called Fizent Tech uh which is 10:24 10 minutes, 24 seconds uh soft to compliant company in USA having uh their physical presence in 10:30 10 minutes, 30 seconds Tampa and they have their own uh uh uh intellectual property IP product called 10:38 10 minutes, 38 seconds verify uh which is very important for uh cyber security area as well as BFSI 10:44 10 minutes, 44 seconds segment. uh this will increase our cyber security uh portfolio down the line. 10:54 10 minutes, 54 seconds We also have uh sign an exclusive master distribution agreement with A21 technologies to scale uh our uh AI 11:03 11 minutes, 3 seconds powered intelligence platform uh across India. 11:08 11 minutes, 8 seconds This will create a new opportunities in rapidly growing uh AI and product uh uh 11:14 11 minutes, 14 seconds ecosystem in uh India as well as uh uh uh Mina region. As you all know that 11:22 11 minutes, 22 seconds Tally has its own presence and Telligence is one of the unique AI 11:28 11 minutes, 28 seconds powered uh SASbased product which is very useful for any client who is using 11:35 11 minutes, 35 seconds Tally and Tally has more than 2 million clients across India and more than uh uh 11:43 11 minutes, 43 seconds 1 million clients outside India and A21 is one of the biggest uh strong partner 11:51 11 minutes, 51 seconds network of Delhi which is a consortium of uh telly's biggest 21 partners across 11:58 11 minutes, 58 seconds India and having this distribution will give more uh uh you can say uh uh 12:05 12 minutes, 5 seconds vehicle and more acceleration to teley intelligence uh to acquire more and more customers. 12:13 12 minutes, 13 seconds Another notable achievement uh which we secure uh is is also a very unique one 12:20 12 minutes, 20 seconds that all Microsoft 6 uh solution designation partner uh uh certification 12:28 12 minutes, 28 seconds which we achieved last year. uh that will give us uh more uh uh strengthening 12:36 12 minutes, 36 seconds and more presence uh in Microsoft ecosystem not only in India but also in North America, UK and Australia. 12:46 12 minutes, 46 seconds This accomplishment uh validates our technical expertise and strengthens our positioning with the Microsoft 12:54 12 minutes, 54 seconds ecosystem. As I told earlier, enabling us to participate in larger and more complex enterprise transformation 13:02 13 minutes, 2 seconds opportunities. [clears throat] During the year, we also took important strategic initiatives to sharpen our uh business focus. 13:12 13 minutes, 12 seconds The board approved the transfer of Helligence and Bender product businesses to by Technosis private limited for cash 13:21 13 minutes, 21 seconds consideration of uh approximately uh 11.90 cr. 13:27 13 minutes, 27 seconds We believe this step will support better value creation and uh allow greater focus on scaling our core technological 13:36 13 minutes, 36 seconds uh service business. Additionally, we continued investing in our people through employee stock uh ownership uh 13:45 13 minutes, 45 seconds uh esop uh initiatives reinforcing our commitment to uh attract, retain and reward highquality uh talent. 13:57 13 minutes, 57 seconds The broader technology services uh industry continues to benefit from strong structural uh tailwinds. 14:07 14 minutes, 7 seconds Enterprises across sectors are increasingly investments in increasing their investment in cloud adoption, 14:16 14 minutes, 16 seconds digital transformation, cyber security, AI, automation and data modernization. 14:24 14 minutes, 24 seconds Organizations are seeing trusted technology partners who can help them improve efficiency, enhance customer 14:32 14 minutes, 32 seconds experiences and build resilient digital infrastructure. 14:37 14 minutes, 37 seconds You must have seen that we have acquired uh many notable and big clients not only outside India but also in India that too 14:46 14 minutes, 46 seconds in government as well as uh in corporate sector. 14:53 14 minutes, 53 seconds At the same time, India's rapidly expanding digital economy and increasing uh technology penetration will continue 15:01 15 minutes, 1 second to create significant long-term opportunities for the industry. If you have seen u our uh uh growth in 15:09 15 minutes, 9 seconds acquiring more and more India market. So what we have seen that uh and we have uh 15:17 15 minutes, 17 seconds uh strategized that we will keep our focus on India market as well. We don't want to uh dilute everything to our 15:26 15 minutes, 26 seconds export business so that uh any geopolitical situation can disrupt our company uh existence. 15:35 15 minutes, 35 seconds So uh though our India market is not so attractive as compared to uh uh export 15:44 15 minutes, 44 seconds market as far as uh our uh profitability is concerned but it gives us lots of 15:51 15 minutes, 51 seconds learning, lots of strength and lots of visibility uh in the entire ecosystem. 15:59 15 minutes, 59 seconds As you all know that India domestic market is also growing faster than our export business. This will give us more 16:07 16 minutes, 7 seconds uh weightage down the line when more and more uh companies in uh corporate world as well as uh in government will uh adopt digital transformation. 16:20 16 minutes, 20 seconds This will definitely give us a long-term opportunities and long-term uh value for entire company. 16:28 16 minutes, 28 seconds Looking ahead, our priorities remain very clear. 16:33 16 minutes, 33 seconds We will be focusing on ABCD which is uh AI, BI, blockchain, 16:41 16 minutes, 41 seconds cyber security and cloud data and data centers. We will continue strengthening our services capabilities, expanding 16:50 16 minutes, 50 seconds customer relationships, increasing our presence across high growth technology segments like North 16:58 16 minutes, 58 seconds America, UK and uh uh uh Australia, New Zealand region and investing in more emerging 17:07 17 minutes, 7 seconds technologies that align with evolving customer requirements. Our diversified 17:14 17 minutes, 14 seconds portfolio, strong execution capabilities, strategic partnerships, and customer centric approach position 17:22 17 minutes, 22 seconds us well to capture on future opportunities. 17:27 17 minutes, 27 seconds While market conditions continue to evolve, we remain confident in the long-term outlook for our business. We 17:37 17 minutes, 37 seconds believe the foundations we have built over the years combined with the strategic initiatives undertaken during 17:45 17 minutes, 45 seconds FI26 will support uh sustainable growth long-term value creation for all our stakeholders. 17:55 17 minutes, 55 seconds Before I conclude then I'll uh take you to a few statistics. 18:02 18 minutes, 2 seconds I would like to sincerely thank all our employees for their dedication and hard work. Our customers for their continued support. 18:12 18 minutes, 12 seconds Our partners for their collaborations and above all our shareholders for their unwavering support and confidence in VIT. 18:24 18 minutes, 24 seconds Before I take any questions, I would like to just uh give you a few 18:29 18 minutes, 29 seconds statistics so that uh uh you have an idea that what are our goals and uh objectives uh moving forward. 18:41 18 minutes, 41 seconds As I mentioned last year that due to uh geopolitical turmoil uh we will focus more on revenue and more on uh India 18:51 18 minutes, 51 seconds market uh so that we can sustain if at all any eventuality happens. Thank God 18:58 18 minutes, 58 seconds there was no eventuality but uh we could able to achieve more uh uh contracts from India market 19:06 19 minutes, 6 seconds that have definitely uh uh decreased our profitability but that one was not uh 19:15 19 minutes, 15 seconds our concern at the time of last year when there was a geopolitical turmoil but still we could able to achieve what 19:23 19 minutes, 23 seconds we have thought As you all know that uh India market was 19:30 19 minutes, 30 seconds our focus but we could also able to achieve our export business mainly on ABC. 19:38 19 minutes, 38 seconds As you all know that uh last year we focused on having our North America 19:44 19 minutes, 44 seconds physical presence and that is how excuse uh alignment uh and association uh had 19:51 19 minutes, 51 seconds helped us a lot. Now that kind of integration is going on between uh excuse India office and devit so that we 20:01 20 minutes, 1 second become devit become excuse excuse worldwide global delivery center 20:09 20 minutes, 9 seconds as you all know that GCC market is growing rapidly rapid rapidly in India 20:15 20 minutes, 15 seconds and that is how they have uh participated in a joint venture or scale 20:22 20 minutes, 22 seconds X which is a joint venture of uh four companies uh which will provide GCC as a 20:31 20 minutes, 31 seconds service and especially uh in gift uh uh 20:38 20 minutes, 38 seconds uh gift area which is a uh Gandhi uh in Gujarat. 20:45 20 minutes, 45 seconds We have also focused uh uh strongly and invested uh heavily uh so because we 20:52 20 minutes, 52 seconds know that uh ERP and enterprise Microsoft enterprise business uh is growing fast and uh that also giving 21:01 21 minutes, 1 second more profitability as well as more uh uh stickiness with the client and that is how we have acquired GA consulting uh 21:10 21 minutes, 10 seconds couple of years ago. Last year it was a consultation uh uh period for DA as well 21:18 21 minutes, 18 seconds and uh along with DY we also have focused more that the uh DA should give 21:26 21 minutes, 26 seconds uh focus on more uh export business rather than uh uh domestic market. So 21:34 21 minutes, 34 seconds they have also uh acquired good number of uh uh uh USA and Canada based clients. 21:43 21 minutes, 43 seconds It was also very uh exciting for all of us that uh UCI have uh signed recently. 21:51 21 minutes, 51 seconds This is not in S526 but this is just last month we signed uh a shareholding 21:57 21 minutes, 57 seconds agreement with UCI New York that they will be acquiring 25% stake in UCI and 22:05 22 minutes, 5 seconds they will also provide an opportunity of more than $3 million worth of business 22:12 22 minutes, 12 seconds uh in uh US market uh for Microsoft and Linux which is focus business for people. 22:20 22 minutes, 20 seconds We also have invest invested heavily in skill development as I mentioned uh last year that last to last year we have 22:29 22 minutes, 29 seconds started investing into a skill development that has been continued. We uh in visas that that skill development 22:38 22 minutes, 38 seconds will be over by uh June 25 25 uh June or 22:45 22 minutes, 45 seconds July 25 but it has continued and uh it is still on so that we have capable 22:53 22 minutes, 53 seconds people uh uh where our focus is. 22:58 22 minutes, 58 seconds We have also uh strengthened our uh products like intelligence and by sender. 23:07 23 minutes, 7 seconds Though blockchain business could not pick up last year because of overall market conditions but we are still 23:15 23 minutes, 15 seconds optimistic about blockchain business uh for exports as well as for India government business. 23:23 23 minutes, 23 seconds As you all know that last year uh we have uh uh uh we have planned for couple of 23:31 23 minutes, 31 seconds collaboration and then we decided to go with excuse that has also uh taken a 23:37 23 minutes, 37 seconds lots of our time and efforts because uh right now all the strategic uh uh integration is going [clears throat] on between two companies. 23:49 23 minutes, 49 seconds As we all know that UCI have uh uh invested 25% that also got delayed by four to five months. 23:58 23 minutes, 58 seconds Still uh there are many opportunities which we are uh expecting from uh 24:06 24 minutes, 6 seconds various partners and collaborations not only in uh uh North America but also in 24:13 24 minutes, 13 seconds UK and Australia. Currently our focus is uh North America that to integration of 24:20 24 minutes, 20 seconds SUS and then integration with uh UCI and uh J 24:26 24 minutes, 26 seconds our export business uh uh last year uh in FIU 24:32 24 minutes, 32 seconds 6 uh we did around uh 45 cr uh though uh uh before that it was 35 cr we were not 24:40 24 minutes, 40 seconds expecting but we could we could able to achieve 25 cr cloud revenue business got 25 cr cyber 24:50 24 minutes, 50 seconds security is around 5 to 8 cr of business uh India government uh uh uh corporate 24:59 24 minutes, 59 seconds business we clocked around 110 cr which was our focus uh currently we have order 25:06 25 minutes, 6 seconds book of around the 50 to 60 cr uh worth of uh rupees we have around uh 1,000 25:14 25 minutes, 14 seconds to,00 people right now and we are expecting more people to join uh in current year as well. 25:23 25 minutes, 23 seconds These are all things which uh we have uh envisaged we have planned for next few 25:29 25 minutes, 29 seconds years and uh thank you very much for all our stakeholders for supporting uh our 25:37 25 minutes, 37 seconds vision and for uh uh standing behind uh all all the time. With that I would like to uh open the floor for questions. 25:49 25 minutes, 49 seconds Thank you very much. 25:53 25 minutes, 53 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. 26:04 26 minutes, 4 seconds If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. 26:14 26 minutes, 14 seconds Ladies and gentlemen, we will wait for a moment while the question cue assembles. 26:25 26 minutes, 25 seconds The first question comes from the line of summit Takur with SKP securities. Please go ahead. 26:34 26 minutes, 34 seconds Hi sir. Hi S. 26:38 26 minutes, 38 seconds Yeah. Uh so I have a question on the acquisition. So XDS which has acquired 26:44 26 minutes, 44 seconds around 24% stake in uh DEIT. So what are the strategic benefits that have like started following this part let's say? 26:55 26 minutes, 55 seconds Okay. So uh uh as I mentioned during my call uh uh uh that uh day uh was totally 27:06 27 minutes, 6 seconds a offshore uh business and uh uh we want to have our on-site presence so that we 27:12 27 minutes, 12 seconds can have uh on-site and off-site uh hybrid business uh strength as well as 27:19 27 minutes, 19 seconds we can acquire uh more enterprise uh uh level customers uh from North America and UK [clears throat] region. 27:29 27 minutes, 29 seconds Excuse being a uh uh 20 plus years uh uh presence company in USA and in UK uh 27:39 27 minutes, 39 seconds they are extremely focused on enterprise uh customer acquisition. 27:46 27 minutes, 46 seconds their uh uh on-site presence also help uh our our company uh for these 27:52 27 minutes, 52 seconds particular uh uh uh plans. So uh that is definitely give us a more uh uh you can 28:02 28 minutes, 2 seconds say uh strategic business or focus when uh we want to acquire enterprise 28:09 28 minutes, 9 seconds customers. We want to we can then uh uh expand uh horizontally uh and provide 28:17 28 minutes, 17 seconds more and more uh other services which we are very strong at. And excuse uh being 28:24 28 minutes, 24 seconds a uh North America uh company, they are also they were also looking for uh 28:31 28 minutes, 31 seconds global offshore development uh uh company which has a very strong uh 28:37 28 minutes, 37 seconds policies which has very strong processes and uh management support. So these two 28:45 28 minutes, 45 seconds have definitely helped this particular alliance and that will strengthen uh down the line our focus to increase our 28:53 28 minutes, 53 seconds revenue and profitability and uh acquire more enterprise lead customers. 28:59 28 minutes, 59 seconds Okay. Okay. Uh so like uh like both of the companies they are targeting for the larger clients global clients right? 29:08 29 minutes, 8 seconds Yes. So about the companies uh excuse is extremely strong in enterprise BFSI 29:16 29 minutes, 16 seconds healthcare and educ uh and uh uh uh government education sector in US 29:23 29 minutes, 23 seconds and uh uh DY we are extremely strong uh in offshore delivery uh Microsoft 29:31 29 minutes, 31 seconds technologies u uh processes uh and u uh mid uh table customer uh uh 29:40 29 minutes, 40 seconds delivery. [clears throat] So this will give us uh a strengthening this will strengthen both the company's delivery 29:48 29 minutes, 48 seconds as well as uh uh uh you can say front end uh uh or positioning to newer customer as well as existing customers. 30:01 30 minutes, 1 second So uh like what are the revenue opportunities that you expect uh from this partnership for over like for next two years? 30:10 30 minutes, 10 seconds So uh as far as uh next two to uh 3 years are concerned currently in uh this 30:17 30 minutes, 17 seconds year uh as this integration and uh uh various processes uh uh uh set is going 30:25 30 minutes, 25 seconds on. So this year we are expecting around uh1 to2 million uh uh business from 30:32 30 minutes, 32 seconds excuse and from uh next year uh from uh 30:37 30 minutes, 37 seconds FYI 20 uh 27 we are expecting around uh 30:44 30 minutes, 44 seconds uh 3 to5 million a business and that will grow uh 15 to 20% beyond year. 30:52 30 minutes, 52 seconds Okay. Uh so I just uh want to have an idea suppose uh you have a client uh and 31:00 31 minutes uh like maybe in the healthcare industry uh so the client wants uh the enterprise and uh both the Microsoft technologies 31:09 31 minutes, 9 seconds uh so which are the expertise of both xus and uh devit so like how how will the contract stand so the revenue that 31:18 31 minutes, 18 seconds is being generated what will be the split and how the deal will go. So I just want to have an idea of that. So as 31:25 31 minutes, 25 seconds far as uh uh uh this space is concerned uh all non India uh thing will concern it will 31:34 31 minutes, 34 seconds be focused uh it will be frontended by exuse and the entire offshore 31:40 31 minutes, 40 seconds development will be done by uh the mhm so split will be you can say uh 2080 so 31:49 31 minutes, 49 seconds 80% comes to the 20% comes remains with uh okay okay okay 31:58 31 minutes, 58 seconds sir thank you for answering my question uh that I will be joining the 32:05 32 minutes, 5 seconds thank you the next question comes from the line of rupin meta and individual investor 32:12 32 minutes, 12 seconds please go ahead hello yes 32:19 32 minutes, 19 seconds hello am I audible yes sir Yes, thank you sir. Uh so my question is that I mean our company has 32:28 32 minutes, 28 seconds been in the business nearly three decades. So what has changed in last two years that makes you makes us believe that the company can enter into different growth territory? 32:38 32 minutes, 38 seconds Uh uh as we are there in last three decades and predominantly our focus uh 32:47 32 minutes, 47 seconds in in uh India market and SMB market. Uh so that has uh uh really helped us to 32:56 32 minutes, 56 seconds grow uh to a particular level but to increase our profitability to increase 33:03 33 minutes, 3 seconds uh more revenue uh and to increase more uh technological 33:09 33 minutes, 9 seconds uh uh uh uh focus. We have to have enterprise lead and that to uh uh 33:16 33 minutes, 16 seconds overseas clients and uh without having on-site presence it was very difficult 33:23 33 minutes, 23 seconds for us to grow from a level to B level and that is how this entire integration uh going to helped us to grow both the 33:32 33 minutes, 32 seconds companies and uh uh coming back to your question about uh what are the change we 33:39 33 minutes, 39 seconds see we saw the changes we saw are uh that uh if we don't bring uh some kind 33:46 33 minutes, 46 seconds of unique uh proposition in our services then uh our uh billing rate uh uh is uh 33:57 33 minutes, 57 seconds not going to be approved by client. So there has to be uh some kind of unique proposition that to AI or some kind of 34:07 34 minutes, 7 seconds blockchain based solution and that is how we have acquired uh Mindex uh 3 years ago and that is how we have 34:14 34 minutes, 14 seconds acquired uh DI consulting uh one and a half year ago. uh and that is how we are focusing more and more on uh AI and 34:23 34 minutes, 23 seconds cyber security so that uh our existence and we can change uh and we can remain 34:30 34 minutes, 30 seconds uh relevant [clears throat] uh to current uh uh technology and current uh uh uh change which we see uh in entire world. 34:39 34 minutes, 39 seconds Okay. Okay. And and as company has achieved all six Microsoft solution partner designation right? 34:46 34 minutes, 46 seconds Yeah. How many competitors in our size category have this uh distinction and how does it improve our win rate in last deals? 34:54 34 minutes, 54 seconds Yes sir. So uh if I can give you uh uh a example uh with one example that uh uh 35:03 35 minutes, 3 seconds so I don't know about how many companies are there uh who has achieved uh uh Microsoft all the six 35:12 35 minutes, 12 seconds competencies. uh when I saw on asked chat equity in North America it was around 5% of total Microsoft partner 35:20 35 minutes, 20 seconds ecosystem uh they have achieved around uh all these uh six competencies so that's a uniqueness another thing when 35:29 35 minutes, 29 seconds enterprise customers they are approaching any partner to provide services they always see that uh how 35:38 35 minutes, 38 seconds many uh uh certifications we have and that too not only with Microsoft competencies but also various uh 35:47 35 minutes, 47 seconds certificates which we achieve. Uh we are also very proud of having CMI level five uh which 35:54 35 minutes, 54 seconds is extremely relevant in outside India market. Uh also very relevant in India 36:01 36 minutes, 1 second government market. Uh so these are uh various points and I if I can give you uh uh latest example where one of the 36:10 36 minutes, 10 seconds customer which is a a leading sugar uh process company in Texas in uh uh USA 36:19 36 minutes, 19 seconds they approached us because of these competencies and they approached us through Microsoft platform because we have achieved these uh competencies. 36:28 36 minutes, 28 seconds It's not only Microsoft Dynamics competency but also various security competencies as well and we could able 36:36 36 minutes, 36 seconds to close that deal uh in spite of having uh our physical presence in India at that time excuse integration was not 36:44 36 minutes, 44 seconds happen so we could able to uh uh close that 600 to 700,000 36:51 36 minutes, 51 seconds business which is significant for J and uh before uh prior to X's integration So 36:58 36 minutes, 58 seconds this is the example which I can uh proudly uh uh quote uh how what are the 37:06 37 minutes, 6 seconds benefits we uh get from these 37:08 37 minutes, 8 seconds [clears throat] 37:09 37 minutes, 9 seconds uh uh six competencies. 37:12 37 minutes, 12 seconds Okay. Okay. And what percentage of our projects are now outcome based or uh managed service contract versus traditional manor based management? 37:22 37 minutes, 22 seconds uh uh uh traditional man power base is u extremely low I can say it's uh in some 37:29 37 minutes, 29 seconds digit but u as far as manage it is concerned we are around 27% of our total revenue 37:38 37 minutes, 38 seconds okay okay my my last question is uh can you share the average deal size trends over 37:46 37 minutes, 46 seconds the last three years any clients our clients been us the larger mindsets before. 37:53 37 minutes, 53 seconds So, uh those are all uh right now I don't have that uh data up front. So, I just have to uh grab that data and uh 38:02 38 minutes, 2 seconds give it to you. But it's around $80,000 to $100,000 38:09 38 minutes, 9 seconds uh deal size and that two for uh at least two years of contract. 38:16 38 minutes, 16 seconds Okay. Okay. Fine. That's it from my side for now. If I have any other question, I will get back to you. 38:23 38 minutes, 23 seconds Sure. Thanks. 38:28 38 minutes, 28 seconds Thank you. The next question comes from the line of Venode Cha with BS Ventures. Please go ahead. 38:40 38 minutes, 40 seconds Hello. Yes. Hello. Am I? Yes. 38:48 38 minutes, 48 seconds Yeah. Good afternoon, sir. Good afternoon. 38:50 38 minutes, 50 seconds So I just have a couple of questions. So our revenue growth in FY26 was uh just 38:57 38 minutes, 57 seconds around 5%. So what is holding our growth back in terms of revenue? 39:03 39 minutes, 3 seconds Okay. So as far as revenue growth is concerned, we have uh from uh uh last 39:10 39 minutes, 10 seconds year in uh uh starting uh we have made it very clear that uh uh we will focus 39:17 39 minutes, 17 seconds for uh uh revenue growth from uh India market and uh if at all uh geopolitical 39:26 39 minutes, 26 seconds situation is good then we'll achieve more from export business. 39:31 39 minutes, 31 seconds uh we could we can able to achieve more uh uh uh revenue as far as uh uh India 39:39 39 minutes, 39 seconds market is concerned because we are empened with the government of India's mix Gujarat government, Rajasthan 39:46 39 minutes, 46 seconds government and then uh Chandigar uh government but uh we are always very uh 39:55 39 minutes, 55 seconds uh you can say uh uh uh uh focused that those uh orders which we are uh closing 40:04 40 minutes, 4 seconds those has to be very strategic in nature. Second thing uh they should be giving uh certain uh uh profitability 40:13 40 minutes, 13 seconds and third uh our cash flow should not be affected uh closing those uh deals. So 40:21 40 minutes, 21 seconds this were uh main focus and third one is uh we wanted to have more and more uh uh 40:28 40 minutes, 28 seconds USA and uh uh UK prisons so that uh down the line from uh current year to next 40:37 40 minutes, 37 seconds two years we can achieve more revenue and profitability. So last year it was a very strategic uh uh uh nature where we 40:45 40 minutes, 45 seconds took a hold we took a a pause that we wanted to achieve certain thing so that 40:53 40 minutes, 53 seconds uh we can then prepare ourself for more growth in next uh two to three years. 41:01 41 minutes, 1 second Okay. And sir uh which business vertical contributed the most of revenue in FI26? Sorry come again. 41:10 41 minutes, 10 seconds uh which vertical contributed uh revenue in FI26? So uh in FI26 our India uh 41:17 41 minutes, 17 seconds market uh uh gave 67% of uh uh revenue 41:23 41 minutes, 23 seconds as uh is very significant and uh in the geography and when it comes to 41:30 41 minutes, 30 seconds technology our cloud and uh uh blockchain uh uh business unit gave uh uh more revenue uh from this 67%. 41:43 41 minutes, 43 seconds Okay. And how much of the revenue came from the repeat customers? Uh it's it was around 27 to 30%. 41:53 41 minutes, 53 seconds And how many new customers we added? 41:56 41 minutes, 56 seconds So as far as uh DYT is concerned, we are assembly based. So uh uh there are many new customers. So currently we are 42:05 42 minutes, 5 seconds having around 600 to 700 live customers going on. So uh right now I don't have 42:13 42 minutes, 13 seconds any exact number uh for how many new customers we have added but our focus was to add more and more uh uh 42:21 42 minutes, 21 seconds enterprise and uh few government customers. So we achieved around uh 35 to 40 strategic customers in last year. 42:34 42 minutes, 34 seconds Okay. And what is the current order book? 42:37 42 minutes, 37 seconds Uh current order book as I mentioned in my uh uh speech it is around 50 to 60 cr. 42:46 42 minutes, 46 seconds Hello sorry can you repeat? Uh 50 to 6 cr. 42:51 42 minutes, 51 seconds Okay mir what is the revenue growth target for fy 27 and the next financial year FYI 28. 42:59 42 minutes, 59 seconds So uh as far as uh current year and next years are concerned, current year uh this integration and uh uh strengthening 43:08 43 minutes, 8 seconds of both the team uh and uh uh this uh UCI NTA integration is going on. So we 43:16 43 minutes, 16 seconds are expecting around uh uh uh 200 cr uh worth of revenue uh for current year and 43:24 43 minutes, 24 seconds next year we are expecting around uh 15 to 20% growth from uh uh current year. 43:31 43 minutes, 31 seconds Okay. Um thank you so much sir. Thank you. 43:40 43 minutes, 40 seconds Thank you. The next question comes from the line of Parag Ventures. Please go ahead. 43:48 43 minutes, 48 seconds Yeah. Hi, good afternoon. So I have some couple of questions. Uh 43:54 43 minutes, 54 seconds margins uh declined significantly at the fullear level despite revenue growth. Uh 44:02 44 minutes, 2 seconds can you tell what are the key reasons sir? 44:05 44 minutes, 5 seconds Yes sir. So as I mentioned in my uh uh speech that uh AITA margin and 44:13 44 minutes, 13 seconds profitability uh been decreased as compared to last year. So last year there were uh uh two thing that uh uh 44:22 44 minutes, 22 seconds exceptional uh income was there of around 13 cr which is uh not there uh 44:29 44 minutes, 29 seconds this year it was around 4 cr that is one. Second thing is uh uh we have uh uh 44:35 44 minutes, 35 seconds focused uh mainly on India market where margins were low and last year when this geopolitical situation was not so good. 44:45 44 minutes, 45 seconds So we uh consciously decided that we will focus more on India market even though our margins are low so that uh uh 44:55 44 minutes, 55 seconds we don't have any exist existal 44:57 44 minutes, 57 seconds [clears throat] 44:58 44 minutes, 58 seconds uh issues that is uh another reason. 45:00 45 minutes Third one is uh after October uh or November uh the strategic uh alliance uh 45:08 45 minutes, 8 seconds uh and the partnership has taken lots of uh uh uh time as well as strategic uh uh 45:16 45 minutes, 16 seconds uh bandwidth because we wanted to uh first have our uh back end strong ready 45:24 45 minutes, 24 seconds so that our processes are aligned with all the companies. Uh and fourth one uh 45:30 45 minutes, 30 seconds is uh we uh invested we are investing more on people for our focus area called 45:39 45 minutes, 39 seconds ABCD. We uh uh forecasted that all those things will be ready by uh last June but 45:48 45 minutes, 48 seconds it got uh uh extended till uh uh December, January. So because uh uh for 45:56 45 minutes, 56 seconds that we have to outsource lots of thing to uh third party uh to deliver our cost at uh having at lower margin. 46:09 46 minutes, 9 seconds Okay. Okay. uh some uh can you also tell me what specific uh actions are being 46:16 46 minutes, 16 seconds taken to improve uh operating margins over the next uh uh 12 months or 18 46:24 46 minutes, 24 seconds months. So as I mentioned earlier that uh uh uh we have strengthened our 46:31 46 minutes, 31 seconds process one we have uh strategically aligned with excuse and UCI so that our 46:39 46 minutes, 39 seconds pipeline become very stronger uh for uh our future business and third thing that 46:48 46 minutes, 48 seconds uh we become uh excuse uh global delivery center so that uh we do not 46:55 46 minutes, 55 seconds have to spend uh our uh sales time uh going abroad and uh uh clocking more 47:03 47 minutes, 3 seconds client. So this is how uh these are the various uh actions which we have taken 47:11 47 minutes, 11 seconds so that we can build more and more profitability and more and more uh uh revenue uh towards ABC. 47:23 47 minutes, 23 seconds Got it. And uh how much uh pricing power do you have with uh customers in the current environment? 47:32 47 minutes, 32 seconds Uh so you mean to say that our order book? Uh yeah. 47:41 47 minutes, 41 seconds So uh uh our order book currently is around uh 50 cr to 60 cr. 47:47 47 minutes, 47 seconds Okay. Sir uh uh I also want to know that uh pricing power like how much the 47:54 47 minutes, 54 seconds pricing power do you have with the customer in the current environment. 48:00 48 minutes Okay. So that's a very interesting question. Uh uh as we are very lean and 48:07 48 minutes, 7 seconds thin in terms of uh uh delivery because we are always very conscious uh uh in 48:14 48 minutes, 14 seconds our investing in uh various things because as it's universal to that our 48:20 48 minutes, 20 seconds profitability uh is low. So uh we uh set our processes extremely strong and that 48:29 48 minutes, 29 seconds we could able to find in last nine months having uh a discussion with a couple of companies for the strategic 48:37 48 minutes, 37 seconds alliance that our processes are extremely great and that uh also keep 48:43 48 minutes, 43 seconds our delivery uh u uh uh cost lower than uh other other companies. That is one. 48:51 48 minutes, 51 seconds Second one is this strategic alliance where uh uh we become very uh relevant 48:59 48 minutes, 59 seconds uh with the company uh who is extremely strong in that area. So if I talk about excuse, excuse is extremely strong uh in 49:07 49 minutes, 7 seconds enterprise, BFSI and healthcare and education, public sector uh uh region uh 49:14 49 minutes, 14 seconds uh geography in US and similarly UCI is extremely uh strong in New York uh uh 49:23 49 minutes, 23 seconds government business. they are uh preferred and favorable uh minority uh womanowned organizations in New York 49:32 49 minutes, 32 seconds state, county and city and that uh uh gives us more uh uh visibility and more 49:40 49 minutes, 40 seconds power uh to close more and more deal without uh spending our sales and marketing uh uh uh you can say muscles. 49:54 49 minutes, 54 seconds Okay, got it sir. Uh so yes that's all from my side sir. Uh thank you so much for giving the limelight on the 50:02 50 minutes, 2 seconds business. So yes that's all from my side. Thank you. Thank you. 50:09 50 minutes, 9 seconds The next question comes in the line of Sanadeshmok with FX Capital. Please go ahead. 50:19 50 minutes, 19 seconds Hello. Yes. 50:23 50 minutes, 23 seconds What was the process uh behind transferring by signal and to by technos instead of continuing to 50:31 50 minutes, 31 seconds scale them within its Yeah. So uh as you have seen that uh uh 50:39 50 minutes, 39 seconds it's always been a day uh uh product uh uh as far as pite uh 50:47 50 minutes, 47 seconds signal and intelligence is concerned what we have seen uh a few things one is that there are many uh uh strategic 50:56 50 minutes, 56 seconds partners who just want to align uh uh themselves with the products not with 51:03 51 minutes, 3 seconds the company. So uh like what uh we have signed uh strategic uh distribution agreement with A21. Uh so that entire 51:12 51 minutes, 12 seconds thing arise from uh uh during that time that we want to have uh a strategic 51:19 51 minutes, 19 seconds partnership uh with the product not with the company. And uh another thing that uh the product business requires lots of 51:29 51 minutes, 29 seconds investment not only into developing the product but also marketing the product and that is also creating lots of uh uh 51:37 51 minutes, 37 seconds cash. It is also attracting lots of cash from the system and that is also 51:43 51 minutes, 43 seconds creating the uh uh you can say uh lower aida for day. So these are various 51:52 51 minutes, 52 seconds region reasons where we thought that let's move it to uh uh uh a company so 51:59 51 minutes, 59 seconds that DYT which is a focus service uh business uh remain uh service business and by technosis will remain a product. 52:14 52 minutes, 14 seconds So from shareholders uh perspective how should we look at the long-term value creation from this re uh restructuring 52:24 52 minutes, 24 seconds uh are you talking about b technosis uh for uh for the long-term thing for the b technosis kind of thing yes 52:33 52 minutes, 33 seconds yeah so as far as shareholder uh are concerned where I'm also one of the 52:38 52 minutes, 38 seconds shareholders where uh one is their uh uh 52:45 52 minutes, 45 seconds AITA will grow more. Second thing, if at all uh there are uh uh talks going on 52:53 52 minutes, 53 seconds with uh uh tells where few strategic investors or uh companies they want to 53:00 53 minutes invest more into that company. that has created more doors uh for uh uh uh 53:07 53 minutes, 7 seconds investors to invest into rather than having that company that product with 53:13 53 minutes, 13 seconds DIY because when DYT was holding Tiger difficult to attract more and more 53:20 53 minutes, 20 seconds strategic partnership as well as uh uh investors. So as far as shareholder is concerned uh this particular uh uh 53:29 53 minutes, 29 seconds transition will definitely uh add more and more intellectual value as well as valuation like what we saw with the 53:38 53 minutes, 38 seconds dayex uh similar kind of thing which we are creating with uh intelligence in by technos. 53:49 53 minutes, 49 seconds So having achieved all six Microsoft solutions partner designations what uh what you know opportunities does this 53:58 53 minutes, 58 seconds create for the company in terms of client project or growth uh as far as all these uh uh SPD 54:06 54 minutes, 6 seconds Microsoft uh uh solution uh partner recognition uh is concerned 54:13 54 minutes, 13 seconds that's we have not quantified it uh uh in value But that has created more value 54:22 54 minutes, 22 seconds proposition and visibility in front of our enterprise customers as well as more 54:28 54 minutes, 28 seconds and more geography. So uh uh as I mentioned earlier that one of the enterprise customer which we closed in 54:37 54 minutes, 37 seconds tax USA because of this uh SPD uh uh visibility. uh same thing we are 54:44 54 minutes, 44 seconds expecting more uh I can't because of MD I can't give few names but uh in Canada 54:51 54 minutes, 51 seconds and in UK right now we are in final talks to close uh high value uh business because of uh these SPDs that is one 55:00 55 minutes second thing is uh our positioning in entire Microsoft solution partner ecosystem where uh Microsoft also 55:10 55 minutes, 10 seconds provide some benefit to these uh uh partners who hold this experience more 55:17 55 minutes, 17 seconds experience. So internal use license then uh more and more uh lead visibility not 55:24 55 minutes, 24 seconds only in the North America region but also in various regions. So we see uh a really good opportunity and we have seen 55:34 55 minutes, 34 seconds uh uh that we could able to close enterprise uh customers because of uh this SPD which we have achieved. 55:47 55 minutes, 47 seconds Okay. So uh that's all from my side. Thank you. Thank you. 55:55 55 minutes, 55 seconds Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to Mr. Hush for closing comments. 56:06 56 minutes, 6 seconds Thank you everyone for joining the conference call of Dave Information Technology Limited. If you have any queries, you can write to us at research at the redcareeradvisor.com. 56:17 56 minutes, 17 seconds Once again, thank you everyone for joining the conference. Thank you H. Thank you all. 56:27 56 minutes, 27 seconds Thank you. On behalf of Ken Advisers, that concludes this conference. Thank you for joining us and you may now disconnect your lines.