Dynacons Systems and Solutions Ltd — Q3 FY26

Dynacons Systems and Solutions Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=PsN7wPJwjfw Published: 2 months ago

0:00 Ladies and gentlemen, good day and welcome to Dacon Systems and Solutions Q3 FY26 Maidings earnings conference 0:09 9 seconds call hosted by Go India Advisers LLP. As a reminder, all participant lines will 0:16 16 seconds be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance 0:25 25 seconds during this conference call, please signal an operator by pressing star then zero on your touchstone phone. Please 0:32 32 seconds note that this conference is being recorded. I now hand the conference over to Miss Kushbu Singana from Go India 0:40 40 seconds Advisers LLP. Thank you and over to you ma'am. 0:44 44 seconds Thank you Palak. Good afternoon everyone and welcome to Dacon system and solutions Q3 FI26 earnings call to 0:52 52 seconds discuss Q3 and 9M FIC results. We have the senior management of the company on call Mr. Parak Gi Dalal, executive 1:00 1 minute director and Mr. Dh S. Anara, executive director and CFO. We must remind you that the discussion on today's call may 1:08 1 minute, 8 seconds include certain forward-looking statements and must be therefore viewed in conjunction with the risk that he faces. May I now request Mr. Parag Dalal 1:17 1 minute, 17 seconds to take us through the company's business outlook and financial highlights subsequent to which we can open the floor for Q&A. Thank you and over to you sir. 1:26 1 minute, 26 seconds Thank you Kushbu. 1:28 1 minute, 28 seconds Good afternoon everyone and thank you for joining us today. Welcome to our first ever earning call. We look forward 1:35 1 minute, 35 seconds to engaging with you regularly going forward. Dynagons continues to strengthen its position as a leading 1:43 1 minute, 43 seconds India focused IT system integrator and managed services provider delivering end-to-end solutions across data center 1:51 1 minute, 51 seconds and cloud infrastructure, cyber security, networking, digital workplace and managed services. Our integrated 1:59 1 minute, 59 seconds platform and deep vendor partnerships enable us to design, deploy, secure and manage missionritical IT environments 2:08 2 minutes, 8 seconds for BFSI, public sector and enterprise clients across India. 2:15 2 minutes, 15 seconds During the quarter, the company delivered steady execution across infrastructure transformation, managed services and enterprise IT modernization. 2:24 2 minutes, 24 seconds We successfully went live with 38 banks under core banking as a service. An initiative of NAB for associated state 2:34 2 minutes, 34 seconds and district cooperative banks reinforcing our execution strength in missionritical financial structure programs. 2:43 2 minutes, 43 seconds We secured several highv value projects across BFSI and public sector including the enterprise application platform 2:50 2 minutes, 50 seconds deployment for RBI a 250 cr order approximately a digital workplace solution for LIC. 2:58 2 minutes, 58 seconds We also won key mandates from JNK bank, State Bank of India and Bank of Boda along with additional orders for 3:06 3 minutes, 6 seconds advanced core banking solutions from various cooperative banks. 3:10 3 minutes, 10 seconds We continue to strengthen enterprise digital infrastructure capabilities through execution of SDW van and advanced network modernization projects for leading financial institutions. 3:22 3 minutes, 22 seconds In parallel, we are expanding our device as a service D and digital workplace offerings, strengthening annuity based 3:32 3 minutes, 32 seconds revenue streams and enhancing long-term client engagements. 3:37 3 minutes, 37 seconds From an industry recognition standpoint, Dinoacons was awarded by Lenovo, a 360 3:44 3 minutes, 44 seconds scale DA growth partner of the year for Asia Pacific. 3:50 3 minutes, 50 seconds Recognized as HPE solution provider of the year 2025 and HPE partner of the year and honored as system integration partner of the year by Versa Networks. 4:02 4 minutes, 2 seconds We were also featured among India's leading ESG entities 2025 by Dun and Brad Street reflecting our commitment to governance and sustainable growth. 4:15 4 minutes, 15 seconds Demand remains strong across our core offerings led by data center modernization, cloud adoption, cyber security initiatives and digital workplace transformations. 4:27 4 minutes, 27 seconds Data center and cloud solutions continue to be our primary growth engine supported by AI workloads, automation 4:34 4 minutes, 34 seconds and data localization requirements which are accelerating enterprise investment in modern IT infrastructure. 4:42 4 minutes, 42 seconds Looking ahead, we expect growth to be supported by increasing enterprise investments in AI ready data centers and 4:49 4 minutes, 49 seconds cloud. It focus on cyber security compliance and resilience and ongoing 4:56 4 minutes, 56 seconds digital transformation across BFSI and public sector enterprises with strong execution capabilities, a 5:04 5 minutes, 4 seconds nationwide delivery footprint and continued investments in AI ready infrastructure and cyber security 5:10 5 minutes, 10 seconds capabilities. We believe Dina is well positioned to benefit from India's accelerating digital transformation and IT spending growth. 5:21 5 minutes, 21 seconds I would like to now hand over the call to Mr. Dsharia to discuss the financial performance and further proceedings. 5:30 5 minutes, 30 seconds Thank you Parag and good afternoon everybody. Dianicons delivered a steady performance in Q3 and 9 months uh 5:39 5 minutes, 39 seconds financial year 2026 supported by disciplined execution and an improving solutions mix 5:47 5 minutes, 47 seconds for Q3 FY26 revenue from operations stood at 341 crores reflecting a 10% 5:54 5 minutes, 54 seconds year-on-year growth IITA grew 49% year-on-year to 41 crores and ITA 6:01 6 minutes, 1 second margins improved to 11.9% %. Profit after tax for the quarter stood at 23 crores, up 27% year-onear. 6:11 6 minutes, 11 seconds For the 9-month period, revenues reached 1,022 crores uh with IBITa increased to 6:19 6 minutes, 19 seconds rupees 110 crores and margins improving to 10.7%. IITA margins. Net profit stood 6:26 6 minutes, 26 seconds at 66 crores rep uh representing a 21% year-on-year growth. Our margin 6:33 6 minutes, 33 seconds improvement reflects operating leverage, higher contribution from our solutions and services, and a growing share of 6:41 6 minutes, 41 seconds value added offerings. Data center and cloud infrastructure projects along with recurring managed services and as a 6:48 6 minutes, 48 seconds service engagements continue to support profitability and improve revenue quality. 6:54 6 minutes, 54 seconds As on December 31st 2025, our revenue book stood at approximately 2389 7:01 7 minutes, 1 second crores providing strong revenue visibility. 7:05 7 minutes, 5 seconds In addition, we maintain a robust order pipeline of approximately 3,83 crores comprising opportunities across 7:14 7 minutes, 14 seconds data center and cloud networking, managed services and workplace solutions. thus supporting strong 7:22 7 minutes, 22 seconds conversion visibility and future growth momentum. 7:26 7 minutes, 26 seconds Demand momentum continues across data center infrastructure, cloud, cyber security, managed services and AI ready 7:34 7 minutes, 34 seconds infrastructure supported by increasing AI workloads, automation requirements and data localization needs. Overall, 7:43 7 minutes, 43 seconds our financial performance reflects resilient demand, strong execution and continued progress towards improving 7:51 7 minutes, 51 seconds margins and strengthening recurring revenues. With that, we open the floor uh for questions. 8:00 8 minutes Over to you, Kushbu. 8:03 8 minutes, 3 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please 8:11 8 minutes, 11 seconds press star and one on your touchstone telephone. If you wish to remove yourself from the question queue, you 8:18 8 minutes, 18 seconds may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will 8:26 8 minutes, 26 seconds wait for a moment while the question cue assembles. 8:34 8 minutes, 34 seconds The first question is from the line of Madur Rati from Counter Cyclical Investments. Please go ahead. So thank 8:41 8 minutes, 41 seconds you for the opportunity sir. If you could just help us understand what is the margin profile of uh the cloud and data center the managed services and the 8:50 8 minutes, 50 seconds digital offerings that we provide. for uh for all. 8:58 8 minutes, 58 seconds So uh the margin profile for the cloud and data center and cloud and the 9:05 9 minutes, 5 seconds network and security and the managed services is higher than the workplace solutions. However, each segment uh we 9:13 9 minutes, 13 seconds we uh are not disclosing segment wise uh uh uh you know business segment wise margin profitability because each 9:22 9 minutes, 22 seconds segment is supporting the other segments. So for each customer we are providing multiple levels of services. 9:29 9 minutes, 29 seconds So you know each of these uh segments supports each other and helps us in building the overall margin profile. 9:39 9 minutes, 39 seconds Right. uh sir so I'm trying to understand so there's a competitor unified data that has been listed and they mentioned us as their competitors 9:48 9 minutes, 48 seconds in their RSP and they are doing margins upward of upwards of 15 20%. So so can Dinoons reach those levels as the mix of 9:56 9 minutes, 56 seconds data center cloud cyber security increases in our revenue. 10:02 10 minutes, 2 seconds So with uh the uh product mix that we are uh there if you see our product mix 10:09 10 minutes, 9 seconds we uh the contribution from data center and cloud has been steadily growing uh there over the years it has moved from 10:17 10 minutes, 17 seconds 14% to 37% as we are today with with that and uh with the other annually 10:25 10 minutes, 25 seconds based projects that we are g getting and the as a service uh business that we are getting we are uh looking to improve the 10:32 10 minutes, 32 seconds profitability as we move along right so if I look at FI27 so what kind 10:40 10 minutes, 40 seconds of revenue growth can we expect and what kind of AETA margins we expect on a steady state sheet basis 10:47 10 minutes, 47 seconds so uh you know uh we are not giving any revenue guidance uh as per policy we are 10:54 10 minutes, 54 seconds not giving revenue guidance uh there however we believe that you know we uh 11:01 11 minutes, 1 second uh you know our continued focus is to ensure that we improve the product mix and have more revenue and annuity based 11:10 11 minutes, 10 seconds uh engagements and service engagements which will improve the margin profile there. We believe that the you have seen 11:18 11 minutes, 18 seconds that over a period of time our all the projects that we have taken have been more margin accredititive and hence uh 11:26 11 minutes, 26 seconds the overall ITA margins have been growing consistently and we do firmly believe that there is growth momentum 11:33 11 minutes, 33 seconds and will continue and continuous efforts are being taken towards that right so just a final question from mind 11:40 11 minutes, 40 seconds and I'll get back in the s out of this 2400 order book that we have sir what would be from uh data center and cloud 11:48 11 minutes, 48 seconds and network and security and what would be the other from IT managed services and sir what is the timeline to execute 11:54 11 minutes, 54 seconds this uh 2389 K of order book right so uh we've disclosed the overall 12:01 12 minutes, 1 second order book number however we currently do not provide a client segment wise break up of the order book uh by BFSI uh 12:09 12 minutes, 9 seconds public sector or global on this call what we can say is that we are strongly positioned across all these seg segments and supported by a nationwide footprint 12:19 12 minutes, 19 seconds and execution track record. Uh in terms of timeline, the order execution timeline ranges from some immediate 12:27 12 minutes, 27 seconds orders uh to be executed and some to be executed over a period of 5 years but an average timeline if you would put it would be around 2 years. 12:39 12 minutes, 39 seconds Uh okay sir thank you so much and all the best. Thank you. 12:44 12 minutes, 44 seconds Thank you sir. Ladies and gentlemen to ask a question please press star and one. Now 12:51 12 minutes, 51 seconds participants who wish to ask questions may please press star and one at this time. The next question is from the line of ankur agarwal from search capital. 13:02 13 minutes, 2 seconds Please go ahead. 13:03 13 minutes, 3 seconds Yeah. Hi sir. Thank you for taking my question. Uh so firstly sir uh increasingly we have been seeing that we have been signing a lot of contacts on 13:11 13 minutes, 11 seconds the new opex model versus the traditional EPC work that we used to do. 13:14 13 minutes, 14 seconds Uh so the first thing that I want to understand is uh could you provide a sense of what kind of capex that we are incurring in this deal and like going 13:22 13 minutes, 22 seconds ahead in the long term uh how is our balance sheet placed to you know sort of fund this capex because historically our business has been very asset light and 13:30 13 minutes, 30 seconds also uh through a lot of cash flows but now since we're investing in this capex for the opex uh type of orders uh how do you see that uh thing in terms of balance sheet and cash flows? 13:42 13 minutes, 42 seconds Yeah. So, uh what we are doing is uh we are uh keeping in mind the prudence and 13:50 13 minutes, 50 seconds uh uh sustainable growth in uh the as a service business there. We are we are 13:57 13 minutes, 57 seconds funding these through multiple uh opportunity uh ways avenues. One is obviously through some of the internal 14:04 14 minutes, 4 seconds approvals that we have with us. We are also utilizing uh 14:11 14 minutes, 11 seconds you know uh certain lease options uh there. So we are procuring devices on a uh long-term lease which collaborates 14:19 14 minutes, 19 seconds with the revenue uh which is being generated from uh these devices. So we we are spreading this mix across uh both 14:28 14 minutes, 28 seconds these uh areas there and uh raising funds accordingly. 14:33 14 minutes, 33 seconds Keeping that in mind as business grows from this we will uh we have a very good um you know support from all the 14:42 14 minutes, 42 seconds financial institution banks and other avenues that we will tap correspondingly 14:50 14 minutes, 50 seconds right right uh so I think from a margin perspective I think this new orders are clearly iterative but in terms of ROC's 14:58 14 minutes, 58 seconds uh do you believe that you can still maintain the same level of ROC's that we have been doing in the traditional business or uh given the kind of things 15:06 15 minutes, 6 seconds that you have given that you'll be looking to raise debt and all that uh which will obviously bloat the balance sheet uh you expect that ROC's incrementally will take a hit. 15:15 15 minutes, 15 seconds So uh while we see you know with uh our base also growing uh there and revenues 15:24 15 minutes, 24 seconds also growing correspondingly we do see uh uh you know this keeping uh steady 15:32 15 minutes, 32 seconds for a period of time uh there and then we will definitely uh look at the various alternatives and ensure that uh 15:41 15 minutes, 41 seconds we don't the return on capital employed continues to be in a steady state and does not drop significantly that we we 15:48 15 minutes, 48 seconds are evaluating options accordingly only right but like to get a sense like in 15:54 15 minutes, 54 seconds the long run uh how big uh can this OPEX business be of our old revenue mix now it would be obviously be very small uh 16:03 16 minutes, 3 seconds but in the long run what what number are you sort of thinking that you know say 70% of the business will continue to be remain on the PPC model and say 20 30% 16:11 16 minutes, 11 seconds becomes this OPX model so so currently if you see our um managed services uh and you know the 16:20 16 minutes, 20 seconds annuity based revenue is around 21% of our uh uh uh you know overall product 16:27 16 minutes, 27 seconds mix. we we expect this to uh grow very significantly uh there over a period of 16:34 16 minutes, 34 seconds time because as we see we've already got uh orders from BHL JNK bank um the Nabad 16:44 16 minutes, 44 seconds for core banking as a service. So as these orders start uh uh you know uh 16:51 16 minutes, 51 seconds hitting the revenue numbers there BHL uh has started adding to the revenue. The others two will be adding from these 16:59 16 minutes, 59 seconds quart this quarter onwards there. So you will see a significant uh up move in the numbers uh which will come across there. 17:10 17 minutes, 10 seconds Okay. Uh so in the past if you see say a decade or 15 years we have been able to improve our margins constantly year 17:18 17 minutes, 18 seconds after year right. uh this this new opex business obviously the margins are much higher but uh can you give a sense of 17:24 17 minutes, 24 seconds what has led to improved margins in the past is is it mostly like managed services uh share increasing and how do 17:31 17 minutes, 31 seconds you see that playing out in the future like at a pat level I'm trying to understand because obviously at the level because of the open the margins are obviously higher because the cost of 17:40 17 minutes, 40 seconds depreciation amotization it's at the lower end but at a pat level do you believe we'll continue to be able to scale margins like what we have done in 17:48 17 minutes, 48 seconds the So we will uh definitely with we are 17:53 17 minutes, 53 seconds seeing a richer uh solution mix and we believe that this level is not only 18:00 18 minutes sustainable but can be uh also growing there especially once we you know move 18:08 18 minutes, 8 seconds uh to a uh margin enhancement and valuated services. we we are still continuing to focus on high margin 18:17 18 minutes, 17 seconds solution areas like data center infrastructure disciplined execution. So these all these uh will definitely 18:26 18 minutes, 26 seconds contribute to a higher PAT uh margins there. So we definitely are confident that the PAT margins will also reflect 18:34 18 minutes, 34 seconds the quote which you can also see that you know even with uh a 10% uh increase in the business there we have been able 18:42 18 minutes, 42 seconds to raise uh PAT margins by 27% in this quarter and 21% overall the 9 month period. 18:51 18 minutes, 51 seconds Right. Right. That was helpful sir. I have few more questions. I'll get back in the Yeah. 18:56 18 minutes, 56 seconds Thank you sir. A reminder to all the participants to ask a question please press star and one. Now the next 19:04 19 minutes, 4 seconds question is from the line of Nirj Dalal from 3A Capital Advisor. Please go ahead. 19:12 19 minutes, 12 seconds Hi, congratulations on a good set of numbers. Uh I had two questions. Uh the first uh sir is um how do you manage the 19:21 19 minutes, 21 seconds competitive dynamics given that the business is uh you know uh based on orders from uh a lot of the PSUs and all 19:29 19 minutes, 29 seconds of that. uh uh that is one and uh second uh in terms of uh you know the rising 19:35 19 minutes, 35 seconds costs of uh hardware and uh all the IT uh you know products that we will be using uh how does that feed into the 19:43 19 minutes, 43 seconds margin profile uh that we have and going forward uh you know how is that impacting because uh in the last 6 months uh you know things have not been 19:52 19 minutes, 52 seconds the same right uh yeah thank you I'll take both of these uh answers So uh we actively 20:01 20 minutes, 1 second manage input cost. This is the answer to your second question. We actively manage input costs and currently do not see 20:08 20 minutes, 8 seconds material pressures that would impact margins and this is due to our strong OEM partnerships where we have uh tied 20:16 20 minutes, 16 seconds up with them for all these projects there. So we have a vendor buy in to all these projects uh there 20:24 20 minutes, 24 seconds and we work very closely with them which helps us mitigate the price volatility uh there. Plus uh you know uh we have a 20:33 20 minutes, 33 seconds lot of productivity initiatives which help us take care of the manpower costs and mitigate them. So overall we are 20:40 20 minutes, 40 seconds well placed to mitigate the supply chain uh issues which are there which which 20:47 20 minutes, 47 seconds definitely are uh you know uh uh you lightly pointed out uh that but yes we 20:55 20 minutes, 55 seconds are mitigating it uh through this. Now coming to uh uh the first part of your question which was around competitive 21:03 21 minutes, 3 seconds bidding from uh you know for the our large BFSI and public sector accounts. 21:08 21 minutes, 8 seconds So we uh Dacons has a very very good uh track record and good pre-qualifications 21:16 21 minutes, 16 seconds uh there to bid at significantly large uh projects there. Now these pre-qualifications enable us to bid 21:26 21 minutes, 26 seconds against companies which are significantly larger than us. So hence the competitive landscape we are able to 21:33 21 minutes, 33 seconds uh uh get an edge in where because we are competing with companies larger than us and we have a proven track record of 21:41 21 minutes, 41 seconds uh uh projects which have been executed across whether it is in SD van, private cloud, core banking. These are uh these 21:50 21 minutes, 50 seconds uh opportunities these uh and our service delivery infrastructure give us 21:57 21 minutes, 57 seconds uh this uh you know the lower execution cost because of the uh experience that we have. These hold us in goodstead during the competitive building. 22:13 22 minutes, 13 seconds Thank you sir. I'll get back in the queue. Yeah. Thank you sir. 22:18 22 minutes, 18 seconds Ladies and gentlemen to ask a question please press star and one. Now the next question is from the line of Urish Sha from Money Wisers. Please go ahead. 22:29 22 minutes, 29 seconds Yeah. Am I audible? Yes. Yes sir. 22:32 22 minutes, 32 seconds Yeah. Yeah. So uh sir my first question is I want to know what is the contribution of uh recurring revenue in our uh books and what is the strategy 22:41 22 minutes, 41 seconds going forward? Are we looking to increase volare from our existing clients or adding more more new clients? 22:49 22 minutes, 49 seconds Right. So uh we uh you know the if you've seen our overall managed services 22:57 22 minutes, 57 seconds revenue is around 21% of our uh current uh revenue there and revenues uh 23:06 23 minutes, 6 seconds recurring revenues are forming a large and growing part of our business. We have a substantial base of multi-year contracts and ongoing services uh there 23:15 23 minutes, 15 seconds and many of our uh managed services deal and devices service deals are multi-year uh contracts which are providing regular 23:24 23 minutes, 24 seconds uh recurring revenue streams. So which is why we are expecting this business to you know s uh successfully continue over a period of time. 23:35 23 minutes, 35 seconds Okay. So but we will be adding new clients as well as we move forward. 23:40 23 minutes, 40 seconds Coming to your question there. So we Danacon has uh uh you know uh a two for twoprong strategy around that uh we 23:49 23 minutes, 49 seconds continue to you know uh harness our existing large pool of enterprise accounts where we are horizontally and 23:57 23 minutes, 57 seconds doing a lot of cross-selling uh uh opportunities there. So while we may enter in through a workplace solutions 24:06 24 minutes, 6 seconds or a managed services uh opportunity in one of the accounts but then we are able to cross-ell and upscale uh upsell uh 24:14 24 minutes, 14 seconds there and uh offer a lot of other solutions to customers there which gives us a lot of stickiness with the 24:22 24 minutes, 22 seconds customers there because we are able to work across multiple solution profiles with them. Two, uh the second strategy 24:29 24 minutes, 29 seconds is also you know around customer acquisition where we uh keep acquiring large enterprise accounts uh there which 24:37 24 minutes, 37 seconds give us the kind of revenue uh visibility you know help us in uh you know building the pipeline for new 24:46 24 minutes, 46 seconds customers and new solutions to be uh worked on with these customers. 24:51 24 minutes, 51 seconds Okay. So and I'll give you an example right uh you know we entered uh 24:59 24 minutes, 59 seconds Punjab National Bank with a small order for services and then we uh you know 25:07 25 minutes, 7 seconds went across with a enterprise level security services contract then we went with asset management. So you know this 25:13 25 minutes, 13 seconds is how we scale across and upscale right sir. And the second question is uh 25:20 25 minutes, 20 seconds are we look do we look for a minimum uh revenue visibility when we enter in a contract or secure an order 25:28 25 minutes, 28 seconds or it's or if it's rangebound minimum range do we look on that front? 25:34 25 minutes, 34 seconds Why while uh uh we definitely strive to work on large projects uh there but uh 25:42 25 minutes, 42 seconds we you know we work on something which is more strategic. So it could be strategic in terms of the product mix 25:50 25 minutes, 50 seconds and the product line uh that we we are doing up. So for example recently for one public sector uh undertaking uh we 25:58 25 minutes, 58 seconds picked up a order for a AI uh implementation there which was a smaller implementation but a a significant start 26:08 26 minutes, 8 seconds uh uh there or alternatively it could be a small order for a large enterprise there. So depending on the products mix 26:16 26 minutes, 16 seconds uh there or the customer uh you know being a strategic customer we decide accordingly and we approach that. 26:26 26 minutes, 26 seconds Okay sir and final question I don't know if uh because I joined the call a bit late but uh the margins look very healthy currently so uh what is the 26:35 26 minutes, 35 seconds sustainable range of margins that you look to maintain going forward? 26:40 26 minutes, 40 seconds So u see our margins have uh been you know the improvement in margins is driven by a a solution mix as we 26:49 26 minutes, 49 seconds mentioned and a good operating leverage and we do believe that this level is sustainable uh there because we are 26:57 26 minutes, 57 seconds clearly focusing on the high margin solution areas uh like data center cloud 27:05 27 minutes, 5 seconds um cyber security and all of these areas and we uh are continuing to focus on you know more as a service opportunities 27:13 27 minutes, 13 seconds there especially the core banking as a service what we have seen there so it's a mix of not only uh device but also 27:21 27 minutes, 21 seconds application as a service there okay thank you sir I'll join back with you thank you 27:29 27 minutes, 29 seconds thank you sir participants who wish to ask questions may please press star and one at this time the next question is 27:37 27 minutes, 37 seconds from the line of Bhagya Bansil an individual investor. Please go ahead. 27:43 27 minutes, 43 seconds Uh yes, good afternoon sir. over there uh actually I have a question that um 27:50 27 minutes, 50 seconds although we have grown uh year-on-year basis on uh profit and uh revenue front 27:58 27 minutes, 58 seconds but uh in case of a quarter on quarter growth uh there's a major slump in the progress 28:05 28 minutes, 5 seconds uh it's I think uh I will try to see it's about uh in case of 28:14 28 minutes, 14 seconds revenue it's minus 3.3 See and in case of profit it's 3.6%. So there is a major slump in the growth we had till now. 28:23 28 minutes, 23 seconds Could you please inform me inform us about the reason why this has happened? 28:28 28 minutes, 28 seconds Yeah good question. Uh so we would like to you know highlight that you know we are in a project uh nature of business 28:37 28 minutes, 37 seconds uh there. So our execution uh you know the overall revenue numbers uh will 28:43 28 minutes, 43 seconds depend on the execution of the projects uh there. So it could be completed in a one quarter or could be spilled over to 28:52 28 minutes, 52 seconds the next quarter. We are not into the you know the run rate uh uh sales where we uh are looking at quarteronquarter numbers uh there and quarter on quarter. 29:04 29 minutes, 4 seconds Yes, definitely we seeing a sustained growth as you have seen across the years but it will our numbers will definitely 29:12 29 minutes, 12 seconds reflect on year on year growth uh there and not quarter on quarter. Okay. 29:17 29 minutes, 17 seconds Because lot of factors which you know depends on the uh execution uh site 29:25 29 minutes, 25 seconds readiness customers internal uh processes uh there the acceptance there. 29:31 29 minutes, 31 seconds So you know all a lot of these factors contribute to uh uh this and which is 29:38 29 minutes, 38 seconds why you're seeing that uh that while on a year on year basis we we seeing consistent growth and uh so sir it can be anticipated that 29:47 29 minutes, 47 seconds uh the growth is not expected to come down it's only the nature of the business which is uh causing it to appear to slow down. 29:58 29 minutes, 58 seconds Yeah. So yes you uh you know it a quarteronquarter is not a right matrix to uh you know measure our growth by the 30:06 30 minutes, 6 seconds better matrix is definitely year on year and you are right u we have already announced several orders uh during the 30:14 30 minutes, 14 seconds year there which are also getting executed uh as we say there. So all of these factors we are very confident that 30:22 30 minutes, 22 seconds the growth momentum that you have seen uh over the uh past uh few years that growth momentum will continue. 30:30 30 minutes, 30 seconds Okay. And uh so there's one more question that uh since uh [clears throat] um we see that there is 30:36 30 minutes, 36 seconds a certain chunk of revenue which dynam software as a service and uh now we can 30:45 30 minutes, 45 seconds see that anthropic as a company has uh released about uh released certain tools 30:51 30 minutes, 51 seconds which are uh anticipated to cause large harm to any anybody who provide uh 30:59 30 minutes, 59 seconds SAS services. So what's the outcome of Dino about it and uh what you think that what how you 31:08 31 minutes, 8 seconds are thinking how you will meet uh meet this challenge right so uh honestly uh if you see our 31:16 31 minutes, 16 seconds revenues our revenues are not from uh providing software as a service so we are not competing with uh you know the 31:25 31 minutes, 25 seconds likes of claude uh and anthropic you know claude philanthropic and other tools. In fact, these tools will help us 31:34 31 minutes, 34 seconds in execution and help us improve our pro uh productivity there. So, it's a positive impact that we will get because 31:43 31 minutes, 43 seconds what we are providing is two types of uh thing. One is we are providing device as a service and second we are providing a 31:50 31 minutes, 50 seconds complete platform and a solution as a service there. So core banking as a service uh when I say specifically 31:58 31 minutes, 58 seconds involves a lot of uh things. It involves a DC and a cloud setup. It involves uh 32:06 32 minutes, 6 seconds networking and SD van uh setup. Uh there it also involves application uh there it also involves uh services uh there it 32:16 32 minutes, 16 seconds involves certain devices infrastructure as a service. So which is why we are not uh you know and also cyber security. So 32:24 32 minutes, 24 seconds which is why uh we you we will be using these tools and these tools will help us improve our productivity in providing these solutions. 32:33 32 minutes, 33 seconds Okay. Thank you sir. And I have just uh uh some questions uh and that's uh 32:43 32 minutes, 43 seconds and you told us sir that uh there is a order book of about 2500 uh kores which is pending. So how much of it is already 32:52 32 minutes, 52 seconds completed over this complete figure is pending for execution. 32:58 32 minutes, 58 seconds So this is the pending order book as on 31st December. 33:02 33 minutes, 2 seconds Okay. And uh sir any idea what's uh the revenue growth anticipated in next 3 to 5 years. 33:10 33 minutes, 10 seconds So uh as we mentioned you know as a company policy we do not give uh any 33:17 33 minutes, 17 seconds guidance on uh you know the growth uh there. However our past track record and the sustained projects that we have uh 33:26 33 minutes, 26 seconds there give us good momentum and visibility. 33:31 33 minutes, 31 seconds Okay. and uh sir uh and it's anticipated that Dino is majorly into government contracts. So is there any plan to 33:39 33 minutes, 39 seconds expand further keeping to other uh segments as well? 33:45 33 minutes, 45 seconds Actually I would like to correct that uh there if you see uh 37% of our revenues 33:53 33 minutes, 53 seconds uh nearly 35% of our revenues come from global customers. So we have a sort of all the large global accounts uh there 34:02 34 minutes, 2 seconds the likes of Facebook uh Uber um then Amazon S&P Google uh all of these are 34:11 34 minutes, 11 seconds our customers there S&P Gartner so you know uh all of these are our customers uh there and uh they are contributing 34:20 34 minutes, 20 seconds nearly 35% of revenues to us number one number two our biggest segment is BFSI 34:26 34 minutes, 26 seconds uh there. So PFSI is also uh one of our biggest segments uh there and uh you know so it's not only public sector that 34:35 34 minutes, 35 seconds we are working on there. ICSI bank is one of our largest customers also. 34:45 34 minutes, 45 seconds Okay. Okay sir. And uh sorry to interrupt sir maybe request that you come back to followup question for in question key. 34:53 34 minutes, 53 seconds Okay. Okay sure. Yes sir. Thank you sir. 34:58 34 minutes, 58 seconds Participants who wish to ask questions will please press star and one at this time. The next question is from the line 35:04 35 minutes, 4 seconds of Madur Rati from counter cyclical investments. Please go ahead. 35:10 35 minutes, 10 seconds Thank you for the opportunity once again. Sir I wanted to understand in this scenario where laptop prices are increasing, server prices are increasing 35:17 35 minutes, 17 seconds and our order book uh is two years out the uh two that is to be executed over two years. So do we have any price pass 35:26 35 minutes, 26 seconds through loop clause where these raw material or the equipment prices are passed on to the end consumers? 35:34 35 minutes, 34 seconds Uh so uh definitely uh while while I'll I'll I'll just put in a small note to correct 35:43 35 minutes, 43 seconds that. So uh a lot of the order book that uh we have is based uh on some immediate 35:51 35 minutes, 51 seconds orders to be executed some to be executed across over a period of 5 years. Now most of these period orders which are to be executed over a longer 35:59 35 minutes, 59 seconds period of time uh with durations exceeding one year are essentially uh more on the services implementation and 36:08 36 minutes, 8 seconds as a service contracts uh which are coming in there. 36:13 36 minutes, 13 seconds uh the uh coming to the orders which we need to execute. Yes, definitely like you rightly mentioned uh prices uh the 36:21 36 minutes, 21 seconds entire supply chain globally has been very severely hit uh due to the entire demand which the all these AI factories 36:29 36 minutes, 29 seconds have created. So uh definitely the supply chain has resulted in increasing 36:35 36 minutes, 35 seconds prices but with uh all our OEMs we have a 36:43 36 minutes, 43 seconds you know constant support available there where they are part and parcel of the agreements that we are uh the orders 36:52 36 minutes, 52 seconds that we are uh winning with the customer and only uh along with them partnering with them we are able to ensure that you 36:59 36 minutes, 59 seconds know there is no uh hit on us uh due to these factors 37:06 37 minutes, 6 seconds right sir so uh sir I'm just trying to understand as a lay man so uh let's uh consider the example of the RBI 37:13 37 minutes, 13 seconds enterprise application deployment order where I would expect that there would be some requirement of servers and uh uh 37:20 37 minutes, 20 seconds chipsets and all these memory uh storage servers all these things where the prices have increased by maybe 20% over 37:27 37 minutes, 27 seconds the next 6 months and we have uh got this order at 250 K. So, so in this scenario, can we go to RBI and ask for 37:37 37 minutes, 37 seconds increase in the price uh order book value or do we need to take the hit and we need to supply them for 250 K only. 37:45 37 minutes, 45 seconds So, I'll would like to clarify here the order from RBI is for setting up a enterprise application platform. It is 37:53 37 minutes, 53 seconds only application platform setups are there along with implementation and services there. So it is on the entire 38:00 38 minutes application software and the services and implementation there it is there is no uh hardware as part of the order 38:11 38 minutes, 11 seconds right sir so but any order where hardware is required to be supplied by us in that scenario how does this go so we have backto-back arrangements 38:20 38 minutes, 20 seconds already with all the IT vendors there which are supporting uh this and these price contracts what uh is agreed with 38:29 38 minutes, 29 seconds the customer is also agreed with the IT vendor or the OEM. 38:33 38 minutes, 33 seconds Okay. So the minute we receive order we buy this equipment from Reddington or Rashi peripheral so that our margins don't take a hit. 38:41 38 minutes, 41 seconds Correct. We we we have all these agreements with the IT OEMs like Dell HP 38:47 38 minutes, 47 seconds and all there. So is already uh you know uh tied in with them so that uh through 38:54 38 minutes, 54 seconds them or through the distributors we can buy it at the agreed pricing the pricing is already agreed. Got it. So that answers my question sir. 39:02 39 minutes, 2 seconds So on working capital cycle sir how should I look at the working capital cycle for DOS as the application and software part of the business increases going forward. 39:14 39 minutes, 14 seconds So see the uh the uh as uh we are increasing our you know the the nature 39:21 39 minutes, 21 seconds of project uh the nature of business is mainly project based where we are undertaking large scale projects uh 39:29 39 minutes, 29 seconds there which involve a go live period across uh you know multiple months uh there. So because of that uh obviously 39:37 39 minutes, 37 seconds uh the these require a longer implementation cycle. Hence uh the data 39:45 39 minutes, 45 seconds days are increasing uh there. However, uh we have got very strong support from all the OEMs and the distributors there. 39:54 39 minutes, 54 seconds Which is why if you see the net uh working capital cycle has actually been we've been able to improve that over the 40:01 40 minutes, 1 second period of time because we've got good uh support in terms of you know the credit periods uh there from our suppliers 40:11 40 minutes, 11 seconds right uh sir also if I look at our the credibility uh in execution and 40:20 40 minutes, 20 seconds track record that we have sorry yeah go ahead Right. Right. And sir, what is this ROU asset of 39.4 crores in our balance sheet as of 40:29 40 minutes, 29 seconds September uh end? Uh so uh uh you know we uh as we mentioned 40:36 40 minutes, 36 seconds we are uh creating uh we for all these as a service projects we are obtaining 40:44 40 minutes, 44 seconds uh assets on lease. So when we obtain assets on lease we need to create a RTU 40:50 40 minutes, 50 seconds uh right to use asset uh there which is what it has been created. 40:57 40 minutes, 57 seconds Got it. And so there's a final question from sir what do we see what do what do we specify or what would we call as the 41:04 41 minutes, 4 seconds USP of Dino versus any other player and so we see lot of capex happening in the data center and uh cloud side. So what 41:14 41 minutes, 14 seconds exactly do we provide in this ecosystem and so suppose for a big data center 41:20 41 minutes, 20 seconds like a Y or NXA are we suppliers to them as well or how do we how Dinoon sits in this ecosystem if you could just help us understand. 41:29 41 minutes, 29 seconds So uh when I when I would say why Dacons you know or what is the USP of Dacons, 41:37 41 minutes, 37 seconds we see we we have a very uh you know we have a nationwide presence. We have 41:44 41 minutes, 44 seconds significant uh uh you know deep technology uh uh you know experience and skill sets 41:54 41 minutes, 54 seconds to uh uh you know run several mission critical and nationwide IT deployments 42:01 42 minutes, 1 second there. We've done several private cloud rollouts. We have uh done several nationwide rollouts. uh multiple core 42:09 42 minutes, 9 seconds banking and as a service and data center augmentation projects, IT life cycle management projects. So we have a very 42:16 42 minutes, 16 seconds proven track record there. We have a nationwide delivery experience. We have strong partnerships with all these 42:23 42 minutes, 23 seconds majors and given our uh experience of 30 years. We have very very good 42:30 42 minutes, 30 seconds qualifications. So not only uh we have good quality uh qualifications and certifications like CMMI level 5, ISO 42:39 42 minutes, 39 seconds 20,000, ISO 27,000 but along with that we also uh are possessing uh all the 42:47 42 minutes, 47 seconds necessary credentials for bidding in large contracts and uh where you know we are able to compete with companies 42:54 42 minutes, 54 seconds larger than us right and sir where do you sit in this data center and cloud offering. How does 43:04 43 minutes, 4 seconds data how does Dino provide service to these big uh data centers like Yota or NXTra? 43:10 43 minutes, 10 seconds Yeah. So, so, so we are uh you know we are a IT services provider and IT solutions provider. So we provide all 43:19 43 minutes, 19 seconds kinds of uh uh IT infra setups for all the data centers there and uh we manage 43:27 43 minutes, 27 seconds these IT uh infra and which are uh put at the data center over a period of time. So we 43:36 43 minutes, 36 seconds really sit in between the traditional data center providers and the customers 43:43 43 minutes, 43 seconds there. So we have uh our own uh uh you know we we are not not only providing 43:52 43 minutes, 52 seconds customers uh as a service provider all these solutions there and helping them through this entire journey uh on cloud 44:00 44 minutes uh there but we are also uh providing these services to data centers although we provide more to customers there direct customer. 44:12 44 minutes, 12 seconds So it is and whatever we supply to the customers is for their own consumption 44:19 44 minutes, 19 seconds right. So so is it fair to understand sir right I'll get back I'll get 44:26 44 minutes, 26 seconds question yes sir thank you sir ladies and gentlemen in order to ensure that management is able to address questions from all the participants in 44:35 44 minutes, 35 seconds the conference call please limit your question to three per participant. 44:40 44 minutes, 40 seconds The next question is from the line of Binoy Jariala from Upachaya Investments. Please go ahead. 44:49 44 minutes, 49 seconds Yes. Thank you for the opportunity. Uh am I audible? Yes. Yes sir. 44:54 44 minutes, 54 seconds Okay. Great. Uh sir, quick question on the order book. Just wanted to understand the order book a bit uh in more detail. Uh so is there any 45:03 45 minutes, 3 seconds seasonality in the order book in terms of you know any particular quarter where you get a lot of uh orders from the banks etc or clients. 45:16 45 minutes, 16 seconds So uh you know while there used to be uh uh something where you know uh bank uh 45:25 45 minutes, 25 seconds banks and uh some public sector companies used to have budgets to finish off in a particular quarter of the year 45:34 45 minutes, 34 seconds there but now there is nothing like that uh there so it is there's no seasonality or any particular quarter which is heavy. 45:43 45 minutes, 43 seconds Understood. Understood. And so as you said you know certain orders where which vary from uh uh you know immediate 45:50 45 minutes, 50 seconds implementation to as long as five years and uh the average order book is roughly about two years. Uh so how do we uh account for the revenue because you'll 45:59 45 minutes, 59 seconds have a go like period and then a m period. So how do we typically account for revenue in such uh multi-year contracts? 46:07 46 minutes, 7 seconds So uh all revenues till go live or accounted immediately because they pass along with the product uh there which is 46:16 46 minutes, 16 seconds as per the requirements of the customer uh there any implementation and uh services uh till go live are implement 46:24 46 minutes, 24 seconds uh you know uh build at the time of uh the service uh there. So usually the go 46:33 46 minutes, 33 seconds live period varies from 6 months to 12 months uh uh there which is what is the period uh there and then post that is 46:41 46 minutes, 41 seconds the O andM phase the operations and maintenance phase which uh gets build over a period of time like it could be a quarterly billing over the next five 46:50 46 minutes, 50 seconds years and what would be the onm component within this 2400 cr order book 46:59 46 minutes, 59 seconds so it varies from project to project uh there. So uh for example uh this uh 47:05 47 minutes, 5 seconds order book uh contains um the dash project for JNK bank which is typically 47:12 47 minutes, 12 seconds built over a period of 5 years. So it will be uh built over a period of 5 years every year uh quarter on quarter 47:21 47 minutes, 21 seconds and there are some project uh based uh uh you know businesses where typically 47:29 47 minutes, 29 seconds it is around 60% uh of the project value is usually built till go live and the 47:36 47 minutes, 36 seconds balance is usually in so 60 7030 depends on depends on project to project. 47:48 47 minutes, 48 seconds Understood. Understood. Understood. Uh sir. 48:00 48 minutes Yeah. Am I am I audible now? Yeah. A little louder, please. Yes. 48:05 48 minutes, 5 seconds Sure. uh I'm saying uh between 21 to 25 uh you've mentioned that your top 10 clients they account they've accounted typically for 60% of revenue. 48:15 48 minutes, 15 seconds So uh by the very nature of this business uh does it mean that this business is very sticky uh in nature and 48:22 48 minutes, 22 seconds it's it in uh you know on the flip side it also means that it's very difficult to onboard new clients. Uh 48:33 48 minutes, 33 seconds so here I would like to state that you know for us um while the top 10 48:40 48 minutes, 40 seconds customers give us around 60% of the revenues as mentioned however the top 10 the names in the uh top 10 keep changing 48:50 48 minutes, 50 seconds so it could be one particular BFSI customer who's in our top 10 for say three out of five years there and then 48:58 48 minutes, 58 seconds it would be uh in another year it could be another uh one. So why we have a set of large uh enterprise accounts across 49:07 49 minutes, 7 seconds all these three segments that is there BFSI, global and uh public sector there. 49:14 49 minutes, 14 seconds So we have all set of large enterprise accounts through whom we so while we have stickiness on one hand we don't 49:21 49 minutes, 21 seconds have too much of dependency there because we have a larger pool of accounts to uh work on and having worked 49:30 49 minutes, 30 seconds on multiple uh uh projects with these customers that gives us that stickiness also. 49:38 49 minutes, 38 seconds Understood. Understood. Um uh sir last interrupt sir do we do we know sir may we request that you return to the question cue for followup. 49:50 49 minutes, 50 seconds Sure. May request that you Yes sir. 49:53 49 minutes, 53 seconds Thank you sir. The next question is from the line of Bhavna Jane from Aagra Capital Advisor LLP. Please go ahead. 50:02 50 minutes, 2 seconds Yeah thank you for the opportunity. Uh sir my question is on the order book bifocation like can you provide the 50:10 50 minutes, 10 seconds sector wise bifocation at least the major part like how much does it come from the BFSI and how much is from the government and how much from the 50:19 50 minutes, 19 seconds enterprise well uh we are currently not providing a 50:25 50 minutes, 25 seconds business mix or customer vertical mix uh numbers there due to confidentiality and 50:32 50 minutes, 32 seconds other uh reasons uh uh there with the customers there that is why we are not providing these uh numbers. However, 50:40 50 minutes, 40 seconds what we can state that is that uh you know uh the revenue numbers that you you are seeing uh the revenue mix that you 50:48 50 minutes, 48 seconds see among our customer verticals uh there uh similar mix you will see among our order book also. 50:57 50 minutes, 57 seconds Okay. Okay. So for this fine no problem. 51:01 51 minutes, 1 second Again on order book itself do we have this bifocation as to how much order book is uh consists of service contracts 51:09 51 minutes, 9 seconds and how much is like a one-off IT project or anything like that any anything like that if you can provide 51:16 51 minutes, 16 seconds so uh honestly all our IT projects have a component of services uh they're both embedded and ongoing uh 51:26 51 minutes, 26 seconds implementation services so uh that way it is So you know it is difficult to give you this because we don't have any 51:34 51 minutes, 34 seconds one-off uh contracts. All our contracts have a services time. 51:40 51 minutes, 40 seconds So how do we see uh the completion time of the of this order book if you can provide that? 51:47 51 minutes, 47 seconds So uh we've already mentioned uh there you know the timeline of the execution of the order book would start from some 51:55 51 minutes, 55 seconds immediate orders uh to some which are over a period of time uh over a period of 5 years uh with an average 52:04 52 minutes, 4 seconds because we have some which are like 3 years 5 years uh projects also but on average we see that the the timeline is 52:14 52 minutes, 14 seconds around 2 years there. So you can then accordingly calculate uh you know if you're looking at some revenue numbers you can make a calculation from 52:23 52 minutes, 23 seconds then in that case uh uh again on the order book side what kind of growth should I anticipate at least for the next two to three years at least. 52:33 52 minutes, 33 seconds So as we have mentioned earlier in this call uh we are uh not as a company 52:40 52 minutes, 40 seconds policy we do not give any uh you know forward-looking uh uh numbers uh there. 52:48 52 minutes, 48 seconds However, what we can say is that we are making continuous efforts to ensure and that the growth momentum and we have a 52:55 52 minutes, 55 seconds fairly good track record as you can see over the last 7 years uh there and we see this growth momentum continuing and 53:02 53 minutes, 2 seconds we have already released uh all these orders uh which are there which also support our statement. 53:10 53 minutes, 10 seconds Uh okay, no worries. We'll look for that another call. Okay. Uh the question again is on the asset Yes ma'am. 53:18 53 minutes, 18 seconds I request that you return to these questions were oh I just have one question again on the asset side I think. So sir as I can see that from 53:27 53 minutes, 27 seconds 2025 onwards we have a bigger fixed asset number because of the data center business or whatever. So if I want to 53:35 53 minutes, 35 seconds calculate the ROA on these assets because earlier we used to be in the services or IT manage uh sector. So can 53:44 53 minutes, 44 seconds I have any number on that as to how what is the expected ROA that can I expect going ahead and are we planning to do 53:52 53 minutes, 52 seconds more capeex again on that lines because of this data center or cloud infrastructure business. 53:58 53 minutes, 58 seconds So so the uh recent capeex that you've seen is all on account of our as a 54:05 54 minutes, 5 seconds service business. So we've got a lot of as a service contracts uh there which is where you're seeing the capeex uh 54:15 54 minutes, 15 seconds uh build up uh there and uh the the margin uh profitability on these is in 54:22 54 minutes, 22 seconds the same lines uh there as you know all these [clears throat] annuity based contracts or services contracts that we 54:29 54 minutes, 29 seconds see there. So uh we we we definitely see a good uh margin profile on these uh 54:36 54 minutes, 36 seconds customers. Uh and uh as far as return on uh the capital or return on assets, we 54:44 54 minutes, 44 seconds you will see continue to see a similar growth uh or a stability around those numbers as well. 54:51 54 minutes, 51 seconds Okay. We'll look forward to the next call for that. No worries. Thank you so much sir. Thank you. Thank you. Thank you ma'am. 55:01 55 minutes, 1 second Ladies and gentlemen, in order to ensure that management is able to address questions from all the participants in the conference call, please limit your question to two per participant. 55:12 55 minutes, 12 seconds The next question is from the line of Ankur Agarwal from Search Capital. Please go ahead. 55:18 55 minutes, 18 seconds Yeah. Hi sir, thanks for opportunity again. Uh so personally on uh I think from FYI 25 balance sheet has started 55:26 55 minutes, 26 seconds showing large uh you know lease liabilities receivable and payable. The payable part is understandable that you're buying certain uh devices on 55:34 55 minutes, 34 seconds lease. Uh but it is uh the receivable part would be broadly the revenue that is committed uh annual revenue that is committed in this OPEX deals. Right. 55:44 55 minutes, 44 seconds Yes. 55:46 55 minutes, 46 seconds Okay. Okay. Uh and secondly sir uh in the most of the contracts that we win 55:54 55 minutes, 54 seconds are these mostly like L1 tenders like on the PSU side it would be L1 tender but the global customer and private uh customers are those also like L1 type of 56:02 56 minutes, 2 seconds tenders or how how does it no no these are not L1 tenders in fact some of these customers we have multi-year contracts with them also so 56:10 56 minutes, 10 seconds it's not uh L1 uh bid always in fact even in most BFSI bids we We are seeing 56:18 56 minutes, 18 seconds a lot of uh you know QCBS based bids where there is uh marks given to technical uh 56:27 56 minutes, 27 seconds uh bid as well as the commercial bid. So you know it's not always uh just a L1 bid. 56:35 56 minutes, 35 seconds Got it. Got that. Thank you. 56:38 56 minutes, 38 seconds Thank you sir. The next question is from the line of Abhishek Benar from GenU capital. Please go ahead. 56:47 56 minutes, 47 seconds Yeah. Hello. Uh thank you for the opportunity. So uh what is the pipeline from PSU and government digital 56:54 56 minutes, 54 seconds transformation initiatives and how much we are uh dependent how much our growth is dependent on government spending 57:03 57 minutes, 3 seconds cycle. So that is my first question and another one is what is the road map for geographic expansion? 57:12 57 minutes, 12 seconds uh as you mentioned uh around 35% are revenues from uh I guess overseas 57:18 57 minutes, 18 seconds clients. So are uh do we have any target for further geographic expansion? Right. 57:26 57 minutes, 26 seconds So uh coming to your first question, we see a very strong uh and growing pipeline from public sector uh due to 57:35 57 minutes, 35 seconds the entire digital transformation programs and our panindia presence and execution capabilities is positioning us 57:43 57 minutes, 43 seconds well to serve these customers. While you know government uh spending can be cyclical that but we have a we usually 57:51 57 minutes, 51 seconds mitigate this because we have a very diversified customer base as well as a d you know a large solution base where we 57:59 57 minutes, 59 seconds can you know work across a lot of uh uh uh solutions with these customers and 58:06 58 minutes, 6 seconds also we have a lot of uh managed services and uh uh you know uh devices 58:14 58 minutes, 14 seconds or uh solutions with these customers which enable us to work across uh there over the period of time and see the entire 58:24 58 minutes, 24 seconds digital transformation is just a journey that they have begun. I uh there is a long way to go even for public sector uh 58:32 58 minutes, 32 seconds uh uh public sector units there. They they have a long way to go there and we are very confident that this will open a 58:41 58 minutes, 41 seconds good pipeline for us. As far as uh geographic exam uh expansion goes uh you 58:48 58 minutes, 48 seconds know we have a phased geog geographic expansion uh strategy. In the near term we are focusing on India because the 58:55 58 minutes, 55 seconds India growth story is not only intact but is very very strong uh there. So definitely that's our primary uh goal. 59:05 59 minutes, 5 seconds Having said that, we also are looking we will look at Apex particularly Southeast 59:11 59 minutes, 11 seconds Asia as our uh next uh growth there where because we see a strong demand for 59:18 59 minutes, 18 seconds IT infrastructure and services there and after that uh we also see Middle East and Europe uh there. Currently we are 59:27 59 minutes, 27 seconds also addressing these opportunities through our partners because we have a lot of international partnerships with global IT majors uh there. We also 59:36 59 minutes, 36 seconds partner with JA we are we JA member which is a global IT alliance there. So know with these partnerships we're able 59:44 59 minutes, 44 seconds to uh uh leverage these and execute projects there. 59:49 59 minutes, 49 seconds Okay. And uh I have followup question that uh could you provide uh you uh from 59:56 59 minutes, 56 seconds our order to pipeline what is percentage of government uh or PSC business. 1:00:03 1 hour, 3 seconds So uh in our order pipeline we have given uh you know business segment breakup uh there in the presentation uh 1:00:11 1 hour, 11 seconds there on on the various business segments. Uh we've not given uh a customer uh breakup there. 1:00:20 1 hour, 20 seconds As we mentioned the customer breakup would be similar to what ultimately uh you know similar to what we are 1:00:28 1 hour, 28 seconds executing currently there where BFSI will be leading the space. 1:00:33 1 hour, 33 seconds Okay. And also are we are you exploring any inorganic opportunities or acquisition aside from current 1:00:39 1 hour, 39 seconds partnership? So we we we continue to evaluate uh these uh opportunities as and when they come across there. Uh 1:00:48 1 hour, 48 seconds currently the uh order book and projects uh under pipeline are also pretty robust and heavy there but we are constantly on 1:00:57 1 hour, 57 seconds the lookout there and we'll act as and when we see opportunity right opportunity. 1:01:04 1 hour, 1 minute, 4 seconds Okay. Yeah that's from my side. I'll get back in. Thank you sir. Thank you sir. 1:01:10 1 hour, 1 minute, 10 seconds A request to all the participants to limit your question to one per participant. The next question is from the line of Bhagya Bansil, an individual investor. Please go ahead. 1:01:28 1 hour, 1 minute, 28 seconds Mr. Bhagya, your line has been unmuted. Please go ahead. Yes. Am I? 1:01:37 1 hour, 1 minute, 37 seconds Yes, sir. 1:01:39 1 hour, 1 minute, 39 seconds Uh so I was saying that just today I saw that uh your company has partnered with 1:01:46 1 hour, 1 minute, 46 seconds uh Syenic. So how what kind of impact you see on your revenues or owner profit 1:01:54 1 hour, 1 minute, 54 seconds growth? Uh I mean what kind of role it this company will play. 1:01:59 1 hour, 1 minute, 59 seconds So uh this this uh you know partnership that we have done is going to help us 1:02:06 1 hour, 2 minutes, 6 seconds enhance our cyber security solution portfolio and you know uh build uh specific AI ready cyber security 1:02:16 1 hour, 2 minutes, 16 seconds services there and offer the same to our customers there. So we we definitely see a very strong uh because you know today 1:02:25 1 hour, 2 minutes, 25 seconds AI is not only playing a role in uh helping customers but it is also helping uh you know uh there are growing 1:02:34 1 hour, 2 minutes, 34 seconds concerns there because there are a lot of uh security attacks which are AIdriven now. So you know uh AI for 1:02:40 1 hour, 2 minutes, 40 seconds security and security for AI that those are really both opportun are opportunities we we definitely need AI 1:02:50 1 hour, 2 minutes, 50 seconds for security and definitely we need to secure the AI and it's a follow-up question actually 1:02:58 1 hour, 2 minutes, 58 seconds in that statement [clears throat] it's mentioned that we are planning to uh go to certain other countries as well so 1:03:05 1 hour, 3 minutes, 5 seconds how this uh company will help Dinoorn's to venture out into these countries like Middle East or such countries. 1:03:15 1 hour, 3 minutes, 15 seconds So, so Dacons will leverage its own partners uh presence its own presence as well as his presence through partners as 1:03:21 1 hour, 3 minutes, 21 seconds we've recently uh you know mentioned on the call there uh to address the opportunities there. What this company 1:03:28 1 hour, 3 minutes, 28 seconds will do is help us in providing the platform uh for providing uh AI 1:03:35 1 hour, 3 minutes, 35 seconds solutions on cyber security and is there any plan to venture into uh 1:03:43 1 hour, 3 minutes, 43 seconds other government contracts in the near future maybe month or one year down the line? 1:03:48 1 hour, 3 minutes, 48 seconds So it will go across variety of contracts. It is not for any one contract or two contract but it will go 1:03:56 1 hour, 3 minutes, 56 seconds as it will be a holistic addition to the entire cyber security portfolio. 1:04:02 1 hour, 4 minutes, 2 seconds Okay. Okay. And uh sir just one question just one question u just a question uh sir 1:04:11 1 hour, 4 minutes, 11 seconds how it's you're breaking up. 1:04:15 1 hour, 4 minutes, 15 seconds Uh I was asking what's the meaning of dinoa this word how it is derived? Well, it's it's derived from being dynamic. 1:04:23 1 hour, 4 minutes, 23 seconds So, dynamic consulting is is the uh you know ethos or origin of the word dyn. 1:04:32 1 hour, 4 minutes, 32 seconds Okay. Okay. Uh thank you sir. Uh I hand over hand over to you. Thank you sir. 1:04:39 1 hour, 4 minutes, 39 seconds Ladies and gentlemen, in the interest of time that was the last question for today. I would now like to hand the conference over to management for 1:04:47 1 hour, 4 minutes, 47 seconds closing comments. Thank you and over to you sir. 1:04:51 1 hour, 4 minutes, 51 seconds Uh thank you everybody there. Uh it was really nice to have you all at our first 1:04:58 1 hour, 4 minutes, 58 seconds earnings call and we will be uh you know undertaking these regularly there. Uh if you if there are any further uh 1:05:07 1 hour, 5 minutes, 7 seconds questions or something like that you can reach out to IR team and uh we will strive to see how these can be taken up. 1:05:15 1 hour, 5 minutes, 15 seconds Thank you for all the interest that you have taken in our company. Uh wish you all a good evening. Thank you. Thank you very much everyone. 1:05:22 1 hour, 5 minutes, 22 seconds We really appreciate your time and presence. Thank you. 1:05:26 1 hour, 5 minutes, 26 seconds Thank you sir. On behalf of Go India Advisor LLP that concludes this conference call. Thank you for joining 1:05:34 1 hour, 5 minutes, 34 seconds us and you may now disconnect your lines. Thank you.