Digitide Solutions Limited — Q3 FY26

Digitide Solutions Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=xUiGgMaxzug Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Digitize Solutions Limited Q3 FI26 earnings conference call hosted by 0:08 8 seconds Arian Capital Markets Limited. As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions 0:17 17 seconds after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on a 0:24 24 seconds touchstone phone. Please note that this conference is been recorded. I now hand the conference over to Miss Joti Singh 0:32 32 seconds from Aryan Capital. Thank you and over to you ma'am. 0:35 35 seconds Thank you. Hello and good morning to everyone on behalf of Arhan Capital Market Limited. I thank you all for joining into the Q3 FI26 earning 0:44 44 seconds conference call of Digitide Solution Limited. Today from the management we have Mr. Guri Jahel he is the CEO and 0:52 52 seconds Mr. Sur Prasad he's the CFO. Mr. Raj Lachani is the head investor relation and M&A. So without any further delays, 0:59 59 seconds I will hand over the call to Rajes Lachani. Sir, over to you sir. 1:04 1 minute, 4 seconds Uh thanks a lot Joti. Uh good day ladies and gentlemen. Thank you very much for joining Digitized Solutions Q3 FI26 1:12 1 minute, 12 seconds earnings conference call. We will begin with a brief overview of the company's performance after which we will open the floor for Q&A. During the call, we will 1:21 1 minute, 21 seconds be making some forwardlooking statements. These statements consider the environment we see as of today and carry risks and uncertainties that could 1:28 1 minute, 28 seconds cause the actual results to differ materially from those expressed in today's call. Uh we do not undertake to update any forward-looking statements 1:35 1 minute, 35 seconds made in this call. With that said, I will now turn over our call to Gurm Chahel our CEO for his opening remarks. Over to you Guri. 1:44 1 minute, 44 seconds Thank you Rajesh. Thank you Joti. So good morning everyone. 1:50 1 minute, 50 seconds Thank you for joining us for our quarter 3 and 9 month FY26 earnings call. Let me 1:59 1 minute, 59 seconds begin by wishing you all a very very happy new year. 2:05 2 minutes, 5 seconds Look uh FY26 is proving to be a defining year of transformation for Digitide. 2:14 2 minutes, 14 seconds Before we dive into the financials, I'm incredibly proud to announce that 2:21 2 minutes, 21 seconds Digitide has been certified as a great place to work for the seventh consecutive year 2:28 2 minutes, 28 seconds in a sector where talent is the ultimate differentiator. This is not just a HR milestone. 2:38 2 minutes, 38 seconds This is a powerful attestation of our people centricity. 2:45 2 minutes, 45 seconds Sustaining this for seven years through a de merger and a public listing proves 2:52 2 minutes, 52 seconds that our team sees immense value in our vision for our shareholders. 3:00 3 minutes This translates into operational stability, lower attrition costs and a high 3:08 3 minutes, 8 seconds performance culture. That is the primary engine behind our 3x3x3 strategy. 3:18 3 minutes, 18 seconds Our road map is clear. Trippling revenues to USD 1 billion by FY31. 3:26 3 minutes, 26 seconds We are moving from laying the foundation to building the structure. This quarter 3:33 3 minutes, 33 seconds the green shoots have turned into visible measurable momentum 3:42 3 minutes, 42 seconds despite a volatile macro environment. We have delivered a resilient Q3 performance. 3:52 3 minutes, 52 seconds Our consolidated revenues reached 780 crores which is a 6.5% 4:00 4 minutes yearon-year increase. This marks our fourth consecutive quarter of forward momentum. 4:11 4 minutes, 11 seconds Our shift toward high margin business is working. Tech and digital revenues 4:17 4 minutes, 17 seconds surged 19% yearonear now making up over 30% of our total mix. 4:27 4 minutes, 27 seconds International footprint uh our global business grew 11% yearonear providing us with the premium pricing 4:35 4 minutes, 35 seconds and geography diversity needed to de-risk our portfolios. 4:41 4 minutes, 41 seconds Our focus on profitable growth is reflected in our AITA of 88 cr with margins 4:50 4 minutes, 50 seconds posting a modest uptick of seven uh BPS quarteron quarter. Although marginal, 4:57 4 minutes, 57 seconds the improvement is noteworthy as it reflects the combined impact of improved 5:04 5 minutes, 4 seconds operating leverage and better mix. While PAT was impacted by one-time adjustment 5:11 5 minutes, 11 seconds related to the new labor code, our adjusted PAT hit a threequarter high of 24 crores. 5:19 5 minutes, 19 seconds The most exciting lead indicator however is our sales engine. Our total contract 5:27 5 minutes, 27 seconds value hit 662 crores, a record high for digitide and a 20% sequential leap. We 5:37 5 minutes, 37 seconds added 34 Q new logos this quarter which proves that our value proposition 5:44 5 minutes, 44 seconds is resonating deeply in the enterprise market. 5:50 5 minutes, 50 seconds We have solidified our status as a hyperscaler first partner. 5:56 5 minutes, 56 seconds Adding GCP to our existing AWS and Microsoft partnerships makes us a rare triple threat in the AI space. 6:07 6 minutes, 7 seconds Furthermore, earning the Microsoft solution partner designation for data and AI positions us among an elite group of partners globally. 6:23 6 minutes, 23 seconds We aren't just talking about AI. We are operating with it. We deployed agentic AI into our smart pay, DIG collect and 6:32 6 minutes, 32 seconds dig loan platforms. Fundamentally improving predictability for our customers. 6:38 6 minutes, 38 seconds We have handled 3.6 million automated transactions this quarter alone. And 6:46 6 minutes, 46 seconds critically and most important, we are futurep proofing our greatest asset. 6:54 6 minutes, 54 seconds Over 6,000 digiters have now been reskilled through I AI learning academy. 7:05 7 minutes, 5 seconds So in summary, Q3 confirms that Digitide is becoming the agile AI native leader 7:14 7 minutes, 14 seconds we envisioned. We have the right partnerships, a record-breaking pipeline, and a culture that remains one 7:22 7 minutes, 22 seconds of the best in the country. We are well positioned for a strong FY26 exit and an accelerated FY27. 7:33 7 minutes, 33 seconds Thank you to our employees, our 7-year great place to work legacy holders and our shareholders. 7:42 7 minutes, 42 seconds I will now hand it over to my colleague Suraj to walk through the financials in detail. Thank you. 7:54 7 minutes, 54 seconds Thank you Gurm and a very good morning to everyone on the call. I will start with the financials for 32 FI26 and also 8:02 8 minutes, 2 seconds give you a walk through on how this is translating into the momentum for the upcoming quarters. revenue. As Gome highlighted, we continue to deliver on a 8:10 8 minutes, 10 seconds stable growth with revenues of 780 crores, increasing both frequently and on a year-on-year basis. This growth 8:17 8 minutes, 17 seconds amidst the softer macro environment and our own reorganization post, de merger and listing demonstrates our inherent resilience in our business. Talking 8:26 8 minutes, 26 seconds about the segments, revenue growth was broad-based as BTM revenues of 545 grows was up 2% quarteron quarter and YUI with 8:36 8 minutes, 36 seconds a strong momentum in tech and digital segment which continued to grow as revenue was up 3% quarteron quarter and 19% YUI [clears throat] 8:43 8 minutes, 43 seconds to 236 crores. As a result, the share of tech and digital business continues to improve in line with our earlier 8:51 8 minutes, 51 seconds aspiration and guidance pricing by 30 basis points to 30.2%. 2 percentage international revenues also increased 3% 8:59 8 minutes, 59 seconds quarteron quarter and 1.4% Y on Y to 292 crores which now accounts for 37.4% of our total revenue increasing by 20 bits quarteron quarter. 9:11 9 minutes, 11 seconds Now moving on to EIA and margins. EITA improved 3% quarteron quarter to 88 crores with a corresponding uptick in the margins. The improvement in margins 9:20 9 minutes, 20 seconds though modest is meaningful as it reflects the combined impact of operating leverage and the better mix. 9:26 9 minutes, 26 seconds Segment wise EITA from BPM increased by 5% sequentially to 86 crores with EITA margins improving by 33 pips. Tech 9:35 9 minutes, 35 seconds digital leita witnessed 10% growth in margins to 23 crores with margins improving by 63 pips to 9.6%. 9:42 9 minutes, 42 seconds With a stronger pipeline and a robust de bookings as Kurit highlighted and most of the transformation and de merger related investments now fully absorbed 9:51 9 minutes, 51 seconds we are on track to uh our margin expansion plan as guided earlier on adjusted pack rose by 43% quarteron 9:59 9 minutes, 59 seconds quarter to 24 crores. The adjustments included exceptional loss of 25.4 crores towards uh the labor code changes which was announced on uh 21st of November. 10:10 10 minutes, 10 seconds The 22.1 crores is towards the grassy and 3.3 crores towards that as a leave and cashment and these impacts have been 10:18 10 minutes, 18 seconds recognized as exceptional items in our financial statements working capital and DSO if you would 10:25 10 minutes, 25 seconds recall we had post our de merger we had uh went through the process of innovating all our contracts from a coin 10:32 10 minutes, 32 seconds quest to digitize and we had a stretch of our DSO day starting uh in quarter 1 to 9 days we improved that lose uh 83 10:41 10 minutes, 41 seconds days in last quarter and happy to report that our working capital cycle in Q3 continues to improve. DSO days improved by another 3 days to 79 days as we had 10:50 10 minutes, 50 seconds guided. We also reported strong operating cash flow during this quarter at 92 crores which is translates to 105% 10:58 10 minutes, 58 seconds of my EIA which is [clears throat] really strong and we expect that to strengthen further as we exit FI26. We expect the DSOS to stabilize further 11:07 11 minutes, 7 seconds more supported by the anomalous billing post the de merger related innovations improved collection rigor and revenue assurance which we have put in place across all the group entities. 11:17 11 minutes, 17 seconds Our balance sheet remains strong with a healthy liquidity and net cash position improving from 113 crores in quarter 2 FI26 to 125 crores in quarter 3. Robust 11:27 11 minutes, 27 seconds balance sheet position provides us the flexibility to continue investing in our capabilities, leadership, strategic priorities and partnerships and any potential in organic pursuits. 11:37 11 minutes, 37 seconds In closing, overall quarter 3 has been stable and a confidence building quarter and the business front tech and digital and international businesses which are 11:45 11 minutes, 45 seconds which is our key for growth continues to rise. Bookings remain healthy and the balance sheet provides the flexibility for future growth. Also the revenue 11:54 11 minutes, 54 seconds quart growth coming in each quarter and the margins continue to improve and the patch strengthening cash conversions normalizing. We are entering quarter 4 12:03 12 minutes, 3 seconds and the last leg of FI26 with a very clear visibility and a strong momentum for growth. With that I hand the call 12:11 12 minutes, 11 seconds back to the moderator for any question and answers. Thank you. 12:15 12 minutes, 15 seconds Thank you very much. We will now begin with the question and answer session. 12:19 12 minutes, 19 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you 12:26 12 minutes, 26 seconds may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 12:36 12 minutes, 36 seconds The first question comes from the line of Joti Singh from Aryan Capital. Please go ahead. 12:42 12 minutes, 42 seconds Thank you for the opportunity. So just wanted to understand like uh this AITA margin remain at 11% despite revenue growth. So what are the top two 12:51 12 minutes, 51 seconds structural margin expansion lever over the next uh 6 to 8 quarters and uh this targeted of 200 to 300 pips a bit 12:59 12 minutes, 59 seconds expansion that we are expecting. So from mix shift versus operational efficiency how much and another when should uh one 13:08 13 minutes, 8 seconds uh expect that margin in tech and digital to converge closer to BPM levels wanted to understand these three point. 13:19 13 minutes, 19 seconds So Ji uh thank you for your question. Um see the structural levers for 13:28 13 minutes, 28 seconds improvement in margin are the product mix when I say the product mix the more 13:35 13 minutes, 35 seconds we move into tech and digital that will improve our margins. Second is the geography mix and as you see on both 13:43 13 minutes, 43 seconds those levels we have positive momentum and we see that continue based on the 13:53 13 minutes, 53 seconds strength of the pipeline that we have both for our international and tech and digital uh business. On top of that, as 14:01 14 minutes, 1 second we leverage AI to automate and optimize our operations, that will 14:10 14 minutes, 10 seconds give further boost to the margin. 14:16 14 minutes, 16 seconds uh on the tech and digital uh there has been a margin expansion versus Q2 14:24 14 minutes, 24 seconds and that and as we all know in the tech and digital deals there is a lag 14:32 14 minutes, 32 seconds between the start of the the revenue and the margin uptake. So the good news is that we are already seeing that 14:40 14 minutes, 40 seconds expansion just between quarter two and quarter 3 and again like I said given 14:47 14 minutes, 47 seconds that nature of that business uh we will expect that to continue. As regards your 14:53 14 minutes, 53 seconds third question on the guidance of 200 to 300 improvement uh that was in line with our FY 31 goal. 15:04 15 minutes, 4 seconds So we stay committed to that journey. 15:09 15 minutes, 9 seconds Okay. Thank you sir. And also sir I wanted to understand on the billing rate side what is currently and over the last four to six quarter and where's the inflection point expected. 15:22 15 minutes, 22 seconds So can you can you please uh expand that when you say on the revenue per employee is that? 15:30 15 minutes, 30 seconds Yeah revenue per employee sir. 15:32 15 minutes, 32 seconds Okay. Got it. Got it. Yeah. So look, our revenue for employee has been pinching 15:38 15 minutes, 38 seconds up as well. Uh in fact versus quarter 3 uh there is a 1.5% 15:46 15 minutes, 46 seconds improvement on uh the revenue per headcount and as you would have also noticed that 15:53 15 minutes, 53 seconds our headcount has actually come down a little bit. So that's again telling us that we the changes that we are making in optimization are are working now. 16:06 16 minutes, 6 seconds Okay. Thank you so much sir. I will come in at you. 16:10 16 minutes, 10 seconds Thank you. The next question comes from the line of Sanjay Sha from SKS Securities. Please go ahead. 16:18 16 minutes, 18 seconds Yeah. Good morning gentlemen and uh thanks for a nice explanation and congratulations on achieving the awards. 16:25 16 minutes, 25 seconds So my question was regarding this uh 662 cr TCV be we booked. So how what are the 16:33 16 minutes, 33 seconds time you expect these contracts to convert into revenue and how much of the current order book is digital and how 16:41 16 minutes, 41 seconds much is from BPM and are you seeing any pricing pressure on the deal difference in BFSI and international markets? 16:50 16 minutes, 50 seconds Uh Mr. Uh Sanjay good morning and thank you for your questions and uh thank you 16:57 16 minutes, 57 seconds for your wishes. So u the deal conversions let me answer the deal 17:03 17 minutes, 3 seconds conversion first. So Mr. A most of our contracts are three-year contracts you 17:10 17 minutes, 10 seconds know and a rule of thumb is that once we book in the next financial year 60 to 17:18 17 minutes, 18 seconds 70% of revenue of the ACV uh gets materialized uh and that's been our uh historical 17:28 17 minutes, 28 seconds real revenue realization from the book deals. So we don't see a change in that uh which is in line with what the 17:36 17 minutes, 36 seconds industry has um the sustained improvement in bookings quarteron 17:42 17 minutes, 42 seconds quarter is now reflecting in the revenue growth Mr. As you can see 17:49 17 minutes, 49 seconds your second question was the second question was on the split between 17:58 17 minutes, 58 seconds tech and digital and the BPS. uh while at some level it's very difficult to uh 18:05 18 minutes, 5 seconds you know pass that uh given that now a lot of our BPMDs also have a tech quotient in it but overall when I look 18:14 18 minutes, 14 seconds at our both our pipeline and the bookings that we've had uh the tech and digital is higher than our current mix 18:23 18 minutes, 23 seconds and that is also reflective uh as you can see in the last two quarters our tech and digital has grown double uh 18:31 18 minutes, 31 seconds digits. Uh so even our current pipeline is uh biased strongly towards tech and 18:39 18 minutes, 39 seconds digital. And then your last question was that are we seeing some margin pressure 18:47 18 minutes, 47 seconds from the BFSI segment? Uh look, the BFSI segment has been under pressure. So it's 18:55 18 minutes, 55 seconds natural that you know they would also want to optimize their cost and vendor 19:02 19 minutes, 2 seconds spend could be one of them and that is where you know our proactive approach of 19:08 19 minutes, 8 seconds embedding AI and giving a and giving a a benefit to our customers 19:18 19 minutes, 18 seconds has been working in our favor. And in fact if you see at a segment level our BPM 19:25 19 minutes, 25 seconds marks has also gone up and the reason I mentioned that is in BPM we have a lot of exposure to BFSI. So I hope I have answered your questions Mr. Sha. 19:37 19 minutes, 37 seconds Yes sir. Yes very much. So sir Mike can I add on a few questions more? Absolutely sir. 19:43 19 minutes, 43 seconds Sir uh you have indicated a growth trajectory which a clear 3x3x3 strategy. 19:49 19 minutes, 49 seconds Can you highlight upon and indicate how how that as you uh write uh uh last pointed out regarding inorganic growth 19:57 19 minutes, 57 seconds route also. So what are your threshold on that uh uh acquisition threshold and 20:03 20 minutes, 3 seconds will that be a margin equity and how how that will uh uh uh dilutive in the near terms? 20:11 20 minutes, 11 seconds Sure. So so Mr. Sha you are absolutely right. uh as we had been continuously 20:18 20 minutes, 18 seconds guiding that inorganic is part of our strategy. 20:23 20 minutes, 23 seconds Uh I had also highlighted earlier that our inorganic strategy is absolutely 20:29 20 minutes, 29 seconds clear. We are looking at uh five cohorts 20:34 20 minutes, 34 seconds in that you know uh two with a mix of horizontal and vertical capabilities. So 20:44 20 minutes, 44 seconds uh horizontal capabilities that align with our current capabilities complement 20:51 20 minutes, 51 seconds them and which are the higher growth areas. So digital engineering, data and analytics and HRO these are all 20:59 20 minutes, 59 seconds doubledigit growths. Our strategy is very conscious that the acquisition will 21:06 21 minutes, 6 seconds be for an asset that springs us uh global revenues. 21:14 21 minutes, 14 seconds bias towards tech and digital so that one our international mix improves which 21:22 21 minutes, 22 seconds is going to be value accurative from a margin perspective and second uh with a bias towards tech and digital assets 21:29 21 minutes, 29 seconds which is also going to be margin accative. So to summarize, inorganic is 21:36 21 minutes, 36 seconds a strategy. We are actively looking for targets. 21:40 21 minutes, 40 seconds uh we are looking for targets that will be margin accative and 21:46 21 minutes, 46 seconds targets that will strengthen our capabilities in the areas that we have chosen like I said digital engineering 21:55 21 minutes, 55 seconds uh data and analytics and AI HRO because HRO is a nice adjacency to what we already do. I hope that answers your question Mr. Sha. 22:06 22 minutes, 6 seconds Yes sir very much sir. So my last two questions was regarding can you highlight upon uh how should investor think about all DJ's contribution to 22:14 22 minutes, 14 seconds consolidated and cash flow and are there any plans to simplify the group structure and to improve the value and 22:21 22 minutes, 21 seconds visibility for all DJ shareholders and even digitized shareholders and the last one is cleanup of the balance sheet is 22:29 22 minutes, 29 seconds over now in last three quarters we have seen many headwinds and we have seen many exceptional expenses is that a vague end of the uh uh provisionings. 22:42 22 minutes, 42 seconds Yeah. So Mr. Sha again thank you uh very astute questions. Uh let me answer your 22:49 22 minutes, 49 seconds second question first. Uh as we had mentioned in the last quarter all the de merger related expenses were taken care 22:57 22 minutes, 57 seconds of in the last quarter itself. this quarter the labor code impact which is a 23:04 23 minutes, 4 seconds industry-wide impact you know uh so we have taken care of that as well you know unless there is a regulatory change like 23:13 23 minutes, 13 seconds labor code impact we don't see any one-time uh expenses impacting now your uh first question look uh Mr. 23:23 23 minutes, 23 seconds like we have said we've created a culture of one digitized we've brought all the companies together so I think uh 23:30 23 minutes, 30 seconds looking at all as an independent entity would not be the right way to look at it I know it's a listed company but we are 23:39 23 minutes, 39 seconds appro we are operating as one digitide and that was the whole promise of this demerger and then getting listed to your 23:48 23 minutes, 48 seconds other point uh look the decision of making it one entity merging it that's 23:56 23 minutes, 56 seconds decision that the shareholders and the board will be taking uh but yes we will 24:04 24 minutes, 4 seconds uh now now that uh you know we we are done with the NASA we are listed these 24:12 24 minutes, 12 seconds priorities are over uh we will definitely explore that and we will bring it up to the respective boards ultimately it's the decision that the 24:21 24 minutes, 21 seconds board and the shareholders will make that's great sir very helpful and wish you best of luck and see this company 24:29 24 minutes, 29 seconds growing under your leadership seeing a great future ahead sir thank you very much thank you thank you Mr. A thank you for your endorsement. 24:37 24 minutes, 37 seconds Thank you. A reminder to all participants. Anyone who wishes to ask a question may press star and one on your 24:44 24 minutes, 44 seconds touchstone telephone. The next question comes from the line of Gorov from Capital Farming Consultant. Please go ahead. 24:54 24 minutes, 54 seconds Yeah. Hi. Uh uh good morning uh to the team and uh thanks for giving an opportunity to ask a question. I hope I am audible. Yeah. 25:04 25 minutes, 4 seconds you are goro. 25:05 25 minutes, 5 seconds Yeah, thank you very much for confirmation. So my first question is on uh TC uh TCV uh and again building on the earlier participants question right. 25:15 25 minutes, 15 seconds So uh as for the presentation that we have published right uh I think slide number 20th in the last four quarters we 25:23 25 minutes, 23 seconds have almost uh contracted a PCV of approximately 2300 cr right in last four quarters. So I just want to understand 25:32 25 minutes, 32 seconds out of this approximately 2300 cr value how much would have been converted into 25:39 25 minutes, 39 seconds sales as on Q3 FI26. So just to get an idea uh uh like you said uh in first 25:46 25 minutes, 46 seconds year a certain percentage get converted into sales and the remaining stand outstanding right so so so just to get an idea out of this 2300 cr uh how much 25:56 25 minutes, 56 seconds has been converted into sales till 3 by 26 so Gorav uh 26:04 26 minutes, 4 seconds thank you for the question uh so Gorav before I answer the question uh there is some context that I like to bring uh if 26:14 26 minutes, 14 seconds you recall in quart also taken down some business uh which 26:21 26 minutes, 21 seconds was a conscious strategy. So the uh and we had guided the market also that we 26:28 26 minutes, 28 seconds are exiting some contracts right. So typically look in our industry uh as we are adding new contracts there 26:38 26 minutes, 38 seconds is always some dilution that is also happening. The solution could be on account of some projects coming to a 26:47 26 minutes, 47 seconds meaningful exit. You know, uh so when you look at this uh PCV to ACV to 26:55 26 minutes, 55 seconds revenue conversions, the thumb rule is the bookings that I make in FY25. Let's 27:04 27 minutes, 4 seconds say I was to make a 2,000 K TCP. 27:09 27 minutes, 9 seconds uh that will translate roughly into an ACV of 600 give or take. So of that 27:15 27 minutes, 15 seconds about 60 to 70% should materialize in the subsequent year. So which would be 27:22 27 minutes, 22 seconds about 350 to 400 crores on a annualized basis but this is gross addition like I 27:30 27 minutes, 30 seconds said there will always be some dilutions also in a running uh business. So when 27:38 27 minutes, 38 seconds you factor that the net addition comes in the ballpark of about 200 to 250 you 27:46 27 minutes, 46 seconds know and then 5% revenue you always add through the inyear uh sales so that 27:53 27 minutes, 53 seconds means u whatever I sell within FY26 5 to 7% of that gets added into the 28:02 28 minutes, 2 seconds revenue so that is the maths at an overall level uh gorov and if you look at our revenue trajectory in the last 28:10 28 minutes, 10 seconds three quarters and if you net off for some of the proactive exits that we did, we are very much in line uh with that uh uh math. 28:23 28 minutes, 23 seconds Uh uh okay, I will just uh go through this number that you have but uh but let me just uh get uh do it a different way 28:32 28 minutes, 32 seconds but somehow on the same numbers only. If as an analyst if you want to get a visibility right let's say let's say 28:42 28 minutes, 42 seconds with K4 or starting with FI 27 K1 FI 27 at this point of a time what is the 28:49 28 minutes, 49 seconds visibility that we have uh because this this will ultimately take us to the FI 31 vision that we have in the past of 28:57 28 minutes, 57 seconds achieving $1 billion revenue right so u based on the TCV that we have already contracted 29:05 29 minutes, 5 seconds What gives us confidence that what percentage of growth we can assume we can assume I'm not looking for a forward-looking statement right but on a 29:12 29 minutes, 12 seconds year basis growth what we can expect from the already contracted TCV right 29:19 29 minutes, 19 seconds that in FI27 we can achieve that much uh based on the already existing uh and which will be supplemented by the 29:26 29 minutes, 26 seconds additional TCV that we will be doing a quarteronquarter basis. Yeah. So uh thank you Gorup. Yes Gorup. 29:34 29 minutes, 34 seconds So based on the first three quarters you know and the pipeline and the likely conversion in Q4 we are very very 29:43 29 minutes, 43 seconds confident that in FY27 first of all we will finish FY26 29:49 29 minutes, 49 seconds stronger and in FY27 we will be doing a double digit growth 29:56 29 minutes, 56 seconds on the revenue. So based on the sales that we have already generated and the 30:03 30 minutes, 3 seconds pipeline for quarter 4 we are very very confident. 30:08 30 minutes, 8 seconds Okay. And related to this only uh we have mentioned on our presentation that we are working with more than 300 plus customers and in the last four quarters 30:16 30 minutes, 16 seconds we have uh worn uh approximately 120 new logos. So, so is it that in the last 30:24 30 minutes, 24 seconds four quarters we have expanded our customer base from 200 plus to 300 plus? 30:28 30 minutes, 28 seconds Do we uh assume this or there is a different interpretation of 300 plus customer in total versus four 120 new logos worn in the last four quarters? 30:41 30 minutes, 41 seconds Yeah. So look uh um Gorov um the 300 is the key customers that we mentioned. 30:50 30 minutes, 50 seconds Obviously our list of customers could be longer because you have to keep in mind that for example in the all digi 30:57 30 minutes, 57 seconds business uh given the nature of that business being a payroll solutions provider we will have a lot of smaller 31:06 31 minutes, 6 seconds customers as well. uh but the key customers is the 300 and within that now 31:16 31 minutes, 16 seconds as we have added and we've also exited some contracts that list will be about 325 to 330 and when I say key customers 31:26 31 minutes, 26 seconds these are the customers where we see you know uh where we see an opportunity to 31:32 31 minutes, 32 seconds grow more uh in fact uh you know within this also We look at our top 100 31:40 31 minutes, 40 seconds customers both from a perspective of where we are with them and what is the total addressable market of their spend 31:49 31 minutes, 49 seconds and what's the wallet share expansion we can do. So I hope I have answered your question Goro. 31:55 31 minutes, 55 seconds Yeah. Yeah. Thanks. If you allow me to last question before I come in the queue for followup. Uh can I go ahead for the last question? 32:04 32 minutes, 4 seconds Sure. 32:05 32 minutes, 5 seconds Yeah. Yeah. Thanks. So uh on a consolidated basis we have reported an AITA approximately 11% right whereas uh 32:12 32 minutes, 12 seconds when I was looking at the numbers reported by our uh a key subsidiary which is also listed called digitech right uh they have reported an aita of 32:21 32 minutes, 21 seconds 30% right so so so if we exclude the aa from our consolidated numbers 32:28 32 minutes, 28 seconds contributed by all digit then u the uh remaining entity of digitide would be I'm I'm assuming somewhere around 10% or 32:36 32 minutes, 36 seconds even more less than 10% of uh epida contributing right so I was just wondering u uh as an analyst as an 32:44 32 minutes, 44 seconds shareholder right what innovative business old is doing where they are commanding an emit of 30% and what labor 32:54 32 minutes, 54 seconds intensive or I would say not so exciting business remaining digitize is doing uh which is giving us a a peanut 33:01 33 minutes, 1 second contribution or a bit of just hardly 10 odd% Right. So, so, so can you as a CEO can you give a a clear crystal clear 33:10 33 minutes, 10 seconds differentiator between the business model being operated by all DG visav digit tide right I'm I'm not bringing uh 33:18 33 minutes, 18 seconds any other listed peers or our industry competitors into this comparison just all versus digitide remaining yeah 33:27 33 minutes, 27 seconds thanks so again uh very astute uh observation so first of All you know like I said 33:36 33 minutes, 36 seconds earlier I think we should look at both world dig digit as one you know 33:44 33 minutes, 44 seconds that's how we are operating today but to answer your question uh the nature of 33:50 33 minutes, 50 seconds business all that is parked within all is slightly different from what is the 33:58 33 minutes, 58 seconds other part of digitide what I mean by that is digitide has a platformled business, you know, which is the payroll 34:07 34 minutes, 7 seconds business. And as you can imagine that the platformled business is always a 34:15 34 minutes, 15 seconds much higher uh a beta margin. Uh that's number one because it's it's a nonlinear 34:24 34 minutes, 24 seconds growth that we expect through that channel. So the the margin profile is very different even on the BPM business. 34:33 34 minutes, 33 seconds uh almost 67% of the BPM business that gets reported under all DG is international business 34:42 34 minutes, 42 seconds you know which is higher uh margin right so as a combination of the two the 34:50 34 minutes, 50 seconds business that we report under all is of a higher margin profile then if you look 34:57 34 minutes, 57 seconds at the other business that we have that is largely domestic VPN BPM and as we 35:04 35 minutes, 4 seconds all know that the the margin profile of the domestic BPM business is partially different from that of international. 35:13 35 minutes, 13 seconds Now on that uh Gorov our strategy is how do we improve that and there are 35:20 35 minutes, 20 seconds multiple things we are doing one the quality of deals that we are taking hereafter. Second, how are we embedding 35:28 35 minutes, 28 seconds more tech in the domestic DPM so that we can uh you know take out the non value 35:37 35 minutes, 37 seconds added uh things and improve the margin profile. Third is 35:45 35 minutes, 45 seconds looking at some segments which are more attractive for us and within those segments also 35:53 35 minutes, 53 seconds changing the product mix. For example, today some of my business is 35:59 35 minutes, 59 seconds platformled. Can I make more platformled business even in the domestic market? So 36:07 36 minutes, 7 seconds those are some of the changes we are making so that in the days to come we can see a margin expansion in the 36:14 36 minutes, 14 seconds domestic EPM as well. So I hope I have answered your question. 36:21 36 minutes, 21 seconds Yeah, thanks. I will come back in uh queue for followup. Thanks. 36:25 36 minutes, 25 seconds Thank you. The next question comes from the line of man Patil from Patel Investments. Please go ahead. 36:32 36 minutes, 32 seconds Uh hello, good morning uh everyone. Uh I have basically two questions. First question, as we are aspiring for a billion dollar revenue by 2031. 36:44 36 minutes, 44 seconds Uh when can we see double digit revenue growth? I mean uh can we see double digit revenue growth for upcoming uh 2 36:51 36 minutes, 51 seconds three years? And the second question is how much business is right now uh nut based. 36:59 36 minutes, 59 seconds Thank you. 37:00 37 minutes So thank you. So man like uh I I I answered the previous question uh we are 37:08 37 minutes, 8 seconds very very confident that in FY27 we should see doubledigit revenue growth based on the bookings we have done so 37:17 37 minutes, 17 seconds far and the sales momentum. Uh that's your first question and your second 37:24 37 minutes, 24 seconds question if you don't mind repeating uh how much uh part of the revenue is annuity based 37:32 37 minutes, 32 seconds oh like platform based yeah so the nut based business is 37:39 37 minutes, 39 seconds twofold one obviously which is platform linked and second is managed services contracts so at an overall digitized 37:46 37 minutes, 46 seconds level almost 70% of our business is annoy based. 37:52 37 minutes, 52 seconds Okay, that answers my question. Thank you and have a good Thank you. 37:59 37 minutes, 59 seconds Thank you. The next question comes from the line of Alle Dal from 130 Capital. 38:06 38 minutes, 6 seconds Please go ahead. 38:11 38 minutes, 11 seconds One is uh there's been a obviously a debate on how much AI is going to cannibalize the core business. Um so can 38:18 38 minutes, 18 seconds you give us a sense of um how much it's cannibalizing versus how much you are replacing it by sort of new AI 38:26 38 minutes, 26 seconds opportunities that's the first question uh and then I'll ask my follow-up after that. Thanks. 38:32 38 minutes, 32 seconds So uh Alik uh thank you thank you for your question. So look uh you know on AI 38:40 38 minutes, 40 seconds I mean it can be seen as a threat and as a growth lever or an opportunity. We are 38:47 38 minutes, 47 seconds seeing AI ladder which is a opportunity to grow my top line and also optimize my bottom line. 38:58 38 minutes, 58 seconds That's the reason we have proactively made a lot of investments in AI. In 39:04 39 minutes, 4 seconds fact, today if you see uh both my BPM business and my tech and digital business has actually grown, you know, 39:13 39 minutes, 13 seconds and we have actually embedded a lot of AI already. Uh for example, we are mapping about almost 4 million 39:20 39 minutes, 20 seconds transactions through agent AIS. We have 15,000 AI agents complementing our human 39:28 39 minutes, 28 seconds agents, you know. So what that tells you is that while we have embedded AI, it's 39:35 39 minutes, 35 seconds actually a creative for us, it's not it's not dilutive or it's not 39:43 39 minutes, 43 seconds compromising our business. Uh that's one. Second is also if you peel the onion on our business you know of the 39:52 39 minutes, 52 seconds BPM business that we have which is roughly 70% of that 70% 60% is tied to 40:03 40 minutes, 3 seconds platforms like our payroll platform our uh collections platform our loans platform 40:11 40 minutes, 11 seconds and the insurance platform that we have only 40% is what you would call 40:18 40 minutes, 18 seconds non-platformled. Within that also there is some transaction in the FNA and procurement and supply chain. The 40:26 40 minutes, 26 seconds customer experience business that I have is biased towards three industries 40:33 40 minutes, 33 seconds which is BFSI, healthcare and fast grow tech. These are the industries where human empathy is very very important you 40:42 40 minutes, 42 seconds know and also the nature of work that I do which is revenue enablement for most part requires that human touch so that's 40:52 40 minutes, 52 seconds why we don't believe that that business is at risk now this is I mean like this 40:58 40 minutes, 58 seconds 25% of my total business you know but there also the industries that I am in the nature of work that I do the human 41:06 41 minutes, 6 seconds empathy and human touch is extremely important uh and that's the reason we've been able to embed AI and at the same 41:15 41 minutes, 15 seconds time actually grow our revenues. So Alik I know it was a long answer but I thought it's such an important topic it deserves uh that context. 41:25 41 minutes, 25 seconds No no yeah very helpful. Uh my second question is as you now sort of enter the phase of you know sort of standing on 41:33 41 minutes, 33 seconds your own two feet as an independent company um can you give us some color on where you are in that journey in terms of uh management and organization 41:42 41 minutes, 42 seconds structure whereas where do you still see gaps in terms of talent that you need to hire um or areas that you need to work on or you're 100% there and now it's 41:51 41 minutes, 51 seconds growing going forward is this growth from here uh just give us a sense of that please thanks Sure. Sure. So again 41:58 41 minutes, 58 seconds Alik great question. So if you will recall that when we when we outlined a 42:06 42 minutes, 6 seconds blueprint for 2031 because the 3x3x3 we had also said that there are five 42:14 42 minutes, 14 seconds critical levers for us to execute on that blueprint. These five were leadership, talent and culture, uh 42:24 42 minutes, 24 seconds organization, architecture, uh you know, u offerings that we take to the market and 42:32 42 minutes, 32 seconds inorganic. So those were the five building blocks. Uh let me walk you through the progress that we have already made on each of these five. 42:43 42 minutes, 43 seconds uh today we have a very very strong leadership with a combined experience of 20 to 50 plus years which is steered by 42:51 42 minutes, 51 seconds a very diverse board. So for example we our chief revenue officer joined us from 42:58 42 minutes, 58 seconds AWS sake our uh chief AI and strategy officer joined us from uh co forge 43:07 43 minutes, 7 seconds sepief operations officer Natraan joins us from Accenture. Our chief marketing officer 43:14 43 minutes, 14 seconds joins us from LTI MRI. uh our India business leader who has joined us recently has joined us from Priy prior 43:22 43 minutes, 22 seconds to that with HCL uh Ruchi who was the group CHRO for Quest is now our CHRO and 43:30 43 minutes, 30 seconds Suraj who was our deputy CFO is the CFO here so we've got a very very strong leadership in place and then N minus one 43:39 43 minutes, 39 seconds also we've made some changes uh in the last three quarters and and we've got that in case uh as you would have seen 43:48 43 minutes, 48 seconds you've got a very diverse board with a good representation of people from US, Canada, India across industries you know 43:56 43 minutes, 56 seconds so that's number one second on talent and culture like I said seventh year in a row we are great place to work we are 44:03 44 minutes, 3 seconds one of the best places for leadership uh academy as the people's magazine call it 44:10 44 minutes, 10 seconds um our um the the investments that we are making 44:18 44 minutes, 18 seconds in not only hiring but reskilling our people. Uh like I said 6,000 of our colleagues have already been trained on 44:26 44 minutes, 26 seconds AI. So that's part of that. Basically what we are doing is we've got a very clearly defined talent strategy to 44:33 44 minutes, 33 seconds bolster our performance uh driven culture right and which is manifesting in things like the great place to work 44:40 44 minutes, 40 seconds which is which we have won now for seven years in a row. 44:45 44 minutes, 45 seconds from an organization structure I mean we've got uh a simple market focus 44:51 44 minutes, 51 seconds structure uh with uh you know investments in sales and marketing which we had highlighted in the first two 45:00 45 minutes quarters and then of course a very very differentiated delivery model and that is also very important to understand uh 45:08 45 minutes, 8 seconds I have presence in 17 cities so 40% of my talent is in tier 2 and tier three 45:14 45 minutes, 14 seconds cities on AI. I did highlight the progress that we have made in AI. Uh if you recall, we had said that we are 45:22 45 minutes, 22 seconds going all in all in on AI as the bedrock of our platform based tech, digital and BPM offering suite. So we've done that. 45:33 45 minutes, 33 seconds We have created a brand pulse of AI offerings. We look at AI through three personas. Persona of industry, persona 45:41 45 minutes, 41 seconds of process and persona of uh uh sorry industry process and persona of 45:51 45 minutes, 51 seconds the CXO like AI for CIO, AI for CHRO and the proof of that is already in the numbers that I talked about 4 million 46:00 46 minutes transactions 59,000 AI agents. The last piece or the fifth uh building block of 46:07 46 minutes, 7 seconds our strategy was inorganic and as as I had alluded to Mr. Sanjay Sha's question we have a well- definfined strategy 46:15 46 minutes, 15 seconds there which is growth in uh inorganic growth in prioritized areas to enhance 46:22 46 minutes, 22 seconds our capabilities and market access and we are continuously working on that. So I hope that answers your question on the 46:30 46 minutes, 30 seconds building blocks of our strategy and where we are on that. Thank you. 46:38 46 minutes, 38 seconds Thank you. The next question comes from the line of Anul from Invet. Please go ahead. 46:45 46 minutes, 45 seconds Yeah. Hi. So thanks for the opportunity. 46:48 46 minutes, 48 seconds So wanted to understand that our uh tech and digital margins were around 9.4% whereas our BPM margins were around 15.4%. 46:57 46 minutes, 57 seconds So what are our plans to converge our second digital margin upwards? First question is this. 47:05 47 minutes, 5 seconds So Anukul uh thank you. Uh so Anukul uh as a reminder when we started this 47:12 47 minutes, 12 seconds business as a standalone entity uh most of our tech and digital business was biased towards system integration 47:22 47 minutes, 22 seconds and P&M contracts which by nature are lower margin and the significant part of 47:29 47 minutes, 29 seconds was that was on-site work in US and Canada which again has a lower margin. 47:34 47 minutes, 34 seconds Uh so now what what we are doing is actually uh you know the partner 47:42 47 minutes, 42 seconds ecosystem that we have developed and that's why we were laser focused on developing that partnership ecosystem so 47:51 47 minutes, 51 seconds that we can get into larger managed services tech transformation deals. So the partnership now that we have with 47:59 47 minutes, 59 seconds AWS, Microsoft, GCP, Try Centus as a leading testing platform 48:06 48 minutes, 6 seconds and even Duck Creek in the insurance space is positioning us for the larger transformation deals which have a 48:16 48 minutes, 16 seconds healthy offshore mix which give us higher margin. So you know the building blocks for the transformation of the 48:25 48 minutes, 25 seconds tech and digital business is already in place and uh we are seeing the uh sales 48:32 48 minutes, 32 seconds momentum of that already and then which will start translating into revenue and the margin profile improvement as you as 48:40 48 minutes, 40 seconds you rightly said between Q2 to Q3 we've already expanded our margin for the 48:47 48 minutes, 47 seconds segment you know uh so that's That's the game on improving the margin further on 48:53 48 minutes, 53 seconds the tech and digital. Uh Anukul, I hope I have answered your question. 48:58 48 minutes, 58 seconds Yes sir. Yes sir. Understood sir. Uh so my other question is on the side that you had earlier guided that we'll be 49:05 49 minutes, 5 seconds exiting uh Q4 around uh 10% growth. So are we on a track to to achieve that uh run rate? 49:15 49 minutes, 15 seconds Sorry I your I missed a part of your question there. It was not clear on my end. 49:21 49 minutes, 21 seconds Yeah. Yeah. I I'll just repeat my question. So earlier in the con call you had guided that we'll exit this year by around 10% on growth. So are we on a track to to achieve the same? 49:33 49 minutes, 33 seconds So uh Arukul like I mentioned earlier based on the deals that we have won and the 49:42 49 minutes, 42 seconds the momentum that we generated in this quarter, we are very very confident that 49:48 49 minutes, 48 seconds we will finish the quarter 4 on a stronger note than uh quarter 3. And we 49:58 49 minutes, 58 seconds are also confident that in FY27 we will be in the double digit uh revenue growth. 50:08 50 minutes, 8 seconds All right sir. Yeah that's answer my question. Thank you so much. Thank you. 50:14 50 minutes, 14 seconds Thank you. The next question comes from the line of Maduri from CCIPL. Please go ahead. 50:20 50 minutes, 20 seconds Sir, I wanted to understand that out of our target of tripling revenues by FY31, 50:27 50 minutes, 27 seconds how much contribution is expected to come from our subsidiary all digit? 50:35 50 minutes, 35 seconds So look uh uh sorry was there another question? 50:43 50 minutes, 43 seconds So Maduro that Yes, please go ahead. 50:47 50 minutes, 47 seconds Yeah. Yeah. So Madur I I will give you the architecture how we have envisioned. 50:54 50 minutes, 54 seconds So today we are about 350 million. So we have to add about 650 million. We 51:01 51 minutes, 1 second believe that 2/3 of that will come through organic growth and that organic 51:07 51 minutes, 7 seconds growth will be across uh the digitized uh portfolio. you know uh I don't see 51:14 51 minutes, 14 seconds the AldiG uh I mean the ALDG is already growing at a healthy 14 15% which we see 51:22 51 minutes, 22 seconds to continue so the 2/3 will be coming from the organic growth the one/ird of 51:30 51 minutes, 30 seconds that 650 roughly 200 million is what we expect through inorganic 51:36 51 minutes, 36 seconds route and uh like we had guided earlier you know ideally we would like to do two two three acquisitions which add about 51:45 51 minutes, 45 seconds 150 160 million which grows up to 200 million. So that's the overall architecture of that 1 billion. Uh 51:54 51 minutes, 54 seconds obviously the old portfolio is is going to be a key contributor to that as is going to be the remainder of the 52:01 52 minutes, 1 second business which is picking steam every quarter. 52:06 52 minutes, 6 seconds So my second question is about uh rupee depreciation. So, so what kind of benefit uh do we uh do do we uh 52:14 52 minutes, 14 seconds envisassage from rupee deprecation in the standalone entity as well as our subsidiary all digit? 52:22 52 minutes, 22 seconds Yeah. I mean look uh if you see about 37% of our portfolio is uh international 52:29 52 minutes, 29 seconds revenues. uh if you if you benchmark against last year I would say the benefit is to tune off about 1.5% 52:39 52 minutes, 39 seconds for us overall as digitide and sir the allig 52:46 52 minutes, 46 seconds so all uh because in all the uh if I look at standalone allig given that they 52:55 52 minutes, 55 seconds have slightly more international revenue that would be in the range of 2 and a half%. 53:02 53 minutes, 2 seconds Sir, so this is permanent improvement and we won't have to pass it on to our customers. 53:09 53 minutes, 9 seconds No, this we don't have to pass on to our customer. 53:12 53 minutes, 12 seconds Okay sir. So very great to know and sir also sir one question that sir aren't we thinking about shifting to tier two and 53:21 53 minutes, 21 seconds three geographies in India to lower our lease rental and employee costs like Gopal, Ranchi, Kamato etc. 53:29 53 minutes, 29 seconds Yeah. Yeah. Absolutely. So, in fact, today uh Madur uh 40% of my talent is in 53:37 53 minutes, 37 seconds tier 2 and tier three cities. We are already in 17 cities. For example, we have delivery centers in Mojali, 53:47 53 minutes, 47 seconds Jamshedpur, Indor, Mithapur, Quimbatur, Lacna, Pune and we are absolutely 53:56 53 minutes, 56 seconds committed to tier two and three. Tier three and this is if you ask me one of our differentiators. Most of my peers do 54:04 54 minutes, 4 seconds not have such a deep penetration in tier 2 and tier three cities as we have. 54:12 54 minutes, 12 seconds Got it sir. Uh one question was on our margin and the in the BPM segment sir. 54:17 54 minutes, 17 seconds Uh one of our competitor 1.1 sir they have very high margins 25% plus because of the outcome based uh revenue model 54:26 54 minutes, 26 seconds that they follow. Sir, so you mentioned a lot on the AI and uh these automation. 54:31 54 minutes, 31 seconds So, so where do we see uh outcome based uh BPM uh as a overall uh mix for all DG as well as for digitize going forward? 54:41 54 minutes, 41 seconds Yeah. So look uh [clears throat] our if you looked at our segment margin our BPM margin is at 15% plus. So it's a 54:51 54 minutes, 51 seconds healthy uh percentage from that perspective. But we are not stopping there. Uh so we are doing three or four 55:00 55 minutes things. Uh one is converting more and more of our contracts from FTE to managed services or outcome based. 55:09 55 minutes, 9 seconds Second uh infusing AI and technology so that we can optimize the costs. In fact, 55:17 55 minutes, 17 seconds if you see versus last quarter, while our revenues have gone up, we have not added headcount. In fact, my headcount 55:24 55 minutes, 24 seconds has come down by about 400 people and my revenue per headcount has also gone up by about 1.5%. So, we are already uh we 55:34 55 minutes, 34 seconds are already executing on that and it's actually working sir. So considering we are already 55:43 55 minutes, 43 seconds implementing these things, can we expect a late uh uh late uh late teens to early 55:50 55 minutes, 50 seconds 20s margin and the BBM segment over the next 5 years? 55:56 55 minutes, 56 seconds Yeah. So look overall as a company we had said that over the next by 2031 we 56:03 56 minutes, 3 seconds expect 200 to 300 point uh basis point expansion. given that uh you know almost 56:11 56 minutes, 11 seconds 70% of our current portfolio is BPM and we expect it to be 60%. So the margin expansion will come through both tech 56:19 56 minutes, 19 seconds and digital and BPM and it will be through a mix of you know the severs 56:26 56 minutes, 26 seconds that I highlighted and also as we do more and more international BPM ex uh uh business that will also expand our margin. 56:38 56 minutes, 38 seconds Got it. Uh sir, just final question from my end. Uh sir, if I consider what percentage of our total revenue 56:46 56 minutes, 46 seconds currently would come from this uh managed services or outcome based revenue model and s what is the incremental margin we earn on that 56:54 56 minutes, 54 seconds versus our overall BPM segment currently? 56:59 56 minutes, 59 seconds So look uh and uh suraj keep me honest uh 40% of our contracts are time and 57:07 57 minutes, 7 seconds material overall. Uh the other contracts will be a mix of outcome managed 57:15 57 minutes, 15 seconds services and fixed plus variable because there are multiple models that we have. 57:22 57 minutes, 22 seconds uh [clears throat] the margin profile is not just a function of the model. It is a function of many other things. The 57:30 57 minutes, 30 seconds nature of work I'm doing. For example, if I'm doing a high-end technology project on a time and material, it could 57:39 57 minutes, 39 seconds still have a much higher re a much higher margin profile given the nature of the work, you know, or I could also 57:46 57 minutes, 46 seconds be doing a managed services work uh which is at a low margin. So just your billing model or how you have contracted 57:55 57 minutes, 55 seconds doesn't control the margin you know what it controls is your ability to manage 58:02 58 minutes, 2 seconds the margin better and claw back some of it. So that's how it is uh you know it will be very difficult to give you 58:11 58 minutes, 11 seconds margin by the nature of contracts. 58:17 58 minutes, 17 seconds Got it. Would it be higher by 5 to 6% on an average on a conservative basis or 58:24 58 minutes, 24 seconds that is a higher number that I'm quoting? 58:28 58 minutes, 28 seconds Uh again uh look uh on paper yes one would expect uh and the 58:37 58 minutes, 37 seconds reason I'm saying this uh Madur don't get me wrong. So for example if I'm doing a project in US onsite you know 58:46 58 minutes, 46 seconds and if I just lift and shift and bring it to offshore the I can expect more than that margin expansion even if I'm 58:54 58 minutes, 54 seconds doing it in a time and material manner right so the on-site margin could be let's say 6 7% offshore margin could be 59:01 59 minutes, 1 second 15 16% at a minimum so right there you can see a 10% change while I have not changed the billing model right on 59:10 59 minutes, 10 seconds tipping Specifically on the managed services contracts, yes, there is an ability for the organization that over 59:18 59 minutes, 18 seconds the term of the contract uh one could expect a margin expansion of four to 5%. 59:25 59 minutes, 25 seconds So from that perspective uh your yard stick is correct. 59:30 59 minutes, 30 seconds Got it. Sir just a final question from man sir on the acquisition front sir you mentioned that we are looking at digital engineering data analytics and AI and 59:39 59 minutes, 39 seconds HR. So so how do we make sure so so uh my uh question is specifically to the HR segments. So the HR acquisitions will be 59:47 59 minutes, 47 seconds done in through DG uh all DG versus digitized so that uh that business can so they are already doing payroll 59:56 59 minutes, 56 seconds processing. So I would expect there to be a extension to the services that they are providing. Uh so on that front because sir I think that would create 1:00:04 1 hour, 4 seconds much more shareholder value for both these for us as well as for them because their u valuation is a is a inherent uh 1:00:14 1 hour, 14 seconds reflects in our valuation. So I wanted to get some of your thoughts on that. 1:00:18 1 hour, 18 seconds Yeah. So Madur like I said you know we look at it as one digitized you know uh where the acquisition is made is a 1:00:26 1 hour, 26 seconds function of many things uh the nature of the business we are acquiring you know the kind of customers we have to look at 1:00:34 1 hour, 34 seconds the synergies we have to look at the people synergies so obviously those are some of the uh you know filters we will apply when we look at any acquisition 1:00:43 1 hour, 43 seconds whether it is HRO or digital engineering but from overall perspective It is an acquisition by digitide you 1:00:51 1 hour, 51 seconds know so we look at everything as one digitite like I've mentioned earlier also got it sir thank you so much and all the 1:00:59 1 hour, 59 seconds best thank you thank you ladies and gentlemen due to time constraint that was the last question 1:01:07 1 hour, 1 minute, 7 seconds for today I now hand the conference over to the management for closing comments thank you and over to you sir 1:01:16 1 hour, 1 minute, 16 seconds So the joti uh and the aran capital team thank you and I want to thank everyone 1:01:25 1 hour, 1 minute, 25 seconds who joined us today. Uh very very encouraging you know um thank you for 1:01:32 1 hour, 1 minute, 32 seconds your continued trust in digitize. We are on the right track and we'll be uh in touch very soon. Thank you so much. 1:01:46 1 hour, 1 minute, 46 seconds Thank you on behalf of Arian Capital Markets Limited. That concludes this conference.