E2E Networks Limited — Q3 FY26

E2E Networks Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=cf609TMFER0 Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to E2E Networks Limited Q3 FI26 earning conference call hosted by 0:09 9 seconds CoIndia Advisers LLP. As a reminder, all participant line will be the listenon mode and there will be an opportunity 0:16 16 seconds for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:27 27 seconds Please note that this conference is being recorded. I now hand the conference over to Miss Swamia Chajer from Go India Advisor. Thank you and over to you ma'am. 0:38 38 seconds Thank you Danish and good morning everyone. We welcome you to E2E Networks Limited Q3 and 9 months FI26 earnings on call. We have with us on call today Mr. 0:47 47 seconds Tarun Dwa the managing director, Mr. 0:49 49 seconds Nitan Jen the CFO and Mr. Ronit Gava the company secretary. I must remind you that the discussion on today's call may include certain forward-looking 0:57 57 seconds statements and must be viewed in conjunction with the risk that the company may face. Thank you and over to you sir. 1:04 1 minute, 4 seconds Thank you Somia and thank you Dh and welcome everyone to the uh Q3 earnings call for the financial year ending March 1:13 1 minute, 13 seconds 26. Uh let me start by reintroducing E2 network for the new listeners. Uh so E2E 1:22 1 minute, 22 seconds was founded in 2009 and is amongst one of the largest uh a IML cloud GPU 1:28 1 minute, 28 seconds players in India currently. Uh we have been a champion of contractless computing since the inception and uh 1:37 1 minute, 37 seconds many of the current large unicorns uh have used E2 networks compute infrastructure when they scaled up themselves from startup to unicorn 1:46 1 minute, 46 seconds stage. uh our infrastructure services platform uh including tier for cloud GPU 1:53 1 minute, 53 seconds including our sovereign cloud platforms uh which can work on premise as well as like uh uh remotely like uh all of that 2:02 2 minutes, 2 seconds supports like uh majority of the workloads for CPU computing and uh GPU computing including training inference 2:09 2 minutes, 9 seconds vector DBs uh model endpoint deployment and allows for scaling up and uh number 2:16 2 minutes, 16 seconds of other services that are expected from public and private clouds today. Now today majority of our workloads uh 2:25 2 minutes, 25 seconds belong to the a IML domain and we are working with really scaled up customers 2:32 2 minutes, 32 seconds uh using our platform and uh uh and the bare metal platform to essentially uh 2:41 2 minutes, 41 seconds allow for high performance uh training and high performance inference workloads which are scaled up to hundreds of GPUs. 2:50 2 minutes, 50 seconds Now uh some of the uh uh latest developments related to E2E that we 2:58 2 minutes, 58 seconds wanted to cover in the call. Uh so India orders as you are already aware uh they 3:05 3 minutes, 5 seconds have gone into implementation and uh majority of those workloads are expected to go live around end of January uh 2026. 3:15 3 minutes, 15 seconds uh the Jarvis lab acquisition of assets was completed in the in this quarter. uh while we don't expect like a very 3:24 3 minutes, 24 seconds substantial contribution to the revenue in Q4 uh this is a technology centric move that rapidly positions us to scale up in the global market. 3:35 3 minutes, 35 seconds Now uh there has been substantial uh progress on the MR target we set for ourselves for March 26. I think we are 3:44 3 minutes, 44 seconds like 70 75% or even 80% there and uh we continue to uh hold uh our target of 3:53 3 minutes, 53 seconds like being able to hit somewhere close to 35 to 40 crores of MR um around March 2026 or thereabouts. Now uh all our 4:03 4 minutes, 3 seconds partnerships are going great like we have uh we have continued to strengthen all our partnerships and uh like we have 4:11 4 minutes, 11 seconds already seen some progress uh in terms of actual convergence happening uh amongst the enterprise customers through 4:20 4 minutes, 20 seconds uh one of our largest partnerships with uh L&T and we continue to uh expect like 4:27 4 minutes, 27 seconds more conversions happening in the near and the medium-term future. 4:32 4 minutes, 32 seconds Now uh we continue to build more blackwell capacity as we have announced from time to time and uh most of the new 4:41 4 minutes, 41 seconds capacity is going to operate from our Chennai facility. Uh like once again 4:48 4 minutes, 48 seconds like uh I would like to briefly touch upon our sovereign AI platform. So we 4:55 4 minutes, 55 seconds remain like one of a one of uh a unique businesses in India who has built like infrastructure software product uh 5:03 5 minutes, 3 seconds sitting here in India with a team which has the experience of building these products all the way back since like 2014 5:12 5 minutes, 12 seconds onwards uh since when we started the development of our cloud platform and uh uh so once 5:20 5 minutes, 20 seconds again I would like to reiterate the levels of sovereignity that uh we as a nation are trying to achieve. Uh of course there are like a number of 5:28 5 minutes, 28 seconds government initiatives which intersect with uh our initiatives on uh the uh push towards uh sovereignity. 5:38 5 minutes, 38 seconds So like one is of course like the first level of sovereignity that I think like we have done a very good job of as a country is localization of all our data 5:48 5 minutes, 48 seconds in India. Now second part is that like is are the physical buildings the data centers uh where the data is being 5:56 5 minutes, 56 seconds stored do they belong to primarily Indian companies like we do that check mark by having partnered with L&T. So 6:06 6 minutes, 6 seconds third part is that like are you dependent majorly on open source uh and your own proprietary software built in 6:14 6 minutes, 14 seconds India or are you dependent on software which could have compliance implications uh from outside uh other countries. And 6:24 6 minutes, 24 seconds fourth is of course that like uh for uh cloud providers who are based out of India especially based out of uh uh some 6:33 6 minutes, 33 seconds of the western countries they have to comply with uh global laws that apply to 6:40 6 minutes, 40 seconds even uh to the data uh that is stored in India on their cloud platforms. So obviously as a cloud-based out of India 6:48 6 minutes, 48 seconds and headquartered in India like we uh provide a complete sovereignity over there to our customers. Then the other 6:56 6 minutes, 56 seconds levels of sovereignity are which obviously there are initiatives in this country going on uh especially the semiconductor mission, the quantum 7:03 7 minutes, 3 seconds mission, the AI mission. So the model sovereignity is being built uh with the help of India AI mission, the semiconductor sovereignity is being built with the semiconductor mission. 7:14 7 minutes, 14 seconds the quantum sovereignity is being built with the quantum mission. So overall we uh kind of like uh uh find the theme of 7:23 7 minutes, 23 seconds solarity is something that like we have been working on uh without using the word for a long time and now we have 7:30 7 minutes, 30 seconds started using the word uh and we would continue to do that to expand our services to uh AI natives, the 7:39 7 minutes, 39 seconds enterprises uh government customers and uh uh AI natives like which are global in nature and spread all across the 7:48 7 minutes, 48 seconds globe. So we continue to deliver on the promise of sovereign AI for all our customers. So with that note, I would 7:56 7 minutes, 56 seconds like to hand over the call to uh our CFO Mr. Nathan Jan to give some more uh uh 8:04 8 minutes, 4 seconds specific inputs about uh uh the progress made in this particular quarter. Uh over to you Nathan. 8:12 8 minutes, 12 seconds Thank you Tam. Good morning everyone. 8:14 8 minutes, 14 seconds Thank you for joining us today and for continued interest in the E2E network. I would walk you through our financial performance for Q326. 8:23 8 minutes, 23 seconds Q3 FI26 has been a strong operational quarter for E2E networks marked by robust revenue growth, improved 8:31 8 minutes, 31 seconds operating leverage and a continuous investment for future scale. Our operational revenue stood at 700 million 8:38 8 minutes, 38 seconds registering a growth of 68.3% yearonear and 59.8 8 quarteronquarter growth. The 8:46 8 minutes, 46 seconds growth is driven by higher capacity utilization, increased enterprise workloads and early traction for strategic and government led the 8:54 8 minutes, 54 seconds contracts. IITA for the quarter stands at 396 million up by 60.9% yearonear and 9:01 9 minutes, 1 second 120.2% quarteron quarter. IITA margin came at 56.6 reflecting strong operating leverage. 9:10 9 minutes, 10 seconds From a profitability standpoint, we reported a PAT loss of 57 million. On a quarteron-quarter basis, PAT has 9:17 9 minutes, 17 seconds improved by 58% indicating earnings are already trending positive as a revenue scale on the newly added capacity. 9:26 9 minutes, 26 seconds The primary uh reason for the loss is on account of higher depreciation which is increased by 476 million reflecting 9:34 9 minutes, 34 seconds commissioning of large GPU deployed in FY25 and 26. Finance cost increasing as we draw our terms loan for the 9:42 9 minutes, 42 seconds infrastructure expansion. On a cost structure basis, our total expense for the quarter stands at 304 million which is in line with the business expansion. 9:52 9 minutes, 52 seconds We continue to maintain tight control on the cost and the inherent scalability of our business model allows incremental revenue to flow through at a higher 10:01 10 minutes, 1 second margins. Our monthly revenue run rate has touched 280 million in December 10:08 10 minutes, 8 seconds 2025. With India AI mission contracts already initiated, LMT enterprise engagement gaining traction, we expect a strong revenue momentum to continue. 10:19 10 minutes, 19 seconds To summarize, Q3 demonstrates strong topline growth and operating strength. 10:23 10 minutes, 23 seconds Our focus remains on maximizing GPU utilization, scaling enterprise and sovereign cloud workloads and delivering 10:31 10 minutes, 31 seconds sustainable profitability as the our capacity matures. We are confident that E2E networks is well positioned to bring 10:38 10 minutes, 38 seconds a long-term sustainable AI leader from India supported by strong balance sheet and growing revenue visibility. 10:47 10 minutes, 47 seconds So now I would uh hand over to the moderator for uh question and answer session. 10:54 10 minutes, 54 seconds Thank you so much sir. Ladies and gentlemen, we'll begin with the question and answer session. Anyone who wishes to ask a question may press star and one on 11:03 11 minutes, 3 seconds their touchstone telephone. If you wish to remove yourself from the question Q, you may press star and two. Participants are request to use handsets while asking 11:11 11 minutes, 11 seconds a question. Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 11:19 11 minutes, 19 seconds Our first question come from the line of Kesha from NASA. Please go ahead. 11:27 11 minutes, 27 seconds Yeah, thank you so much for the opportunity and congrats on the good set of numbers. So like so could you please help us to understand like E2's approach 11:36 11 minutes, 36 seconds to the you know cloud reliability. So like in terms of any downtime or service disruption like what you know redundancy 11:45 11 minutes, 45 seconds measures are in the place that we have taken. So and like how do we typically compensate our customers? 11:53 11 minutes, 53 seconds See we typically uh compensate our customers in case of any service disruption or downtime 12:00 12 minutes uh due to uh our reasons uh based on the SLA and uh typically uh what happens is 12:07 12 minutes, 7 seconds we have a range of customers. So where there are customers who implement like a full single point of failure disaster 12:14 12 minutes, 14 seconds recovery scenarios uh test their backups regularly. So ultimately we are a self-service public cloud uh where uh 12:23 12 minutes, 23 seconds obviously we provide all to our customers across multiple locations to uh kind of like do a multilocation 12:31 12 minutes, 31 seconds installation with disaster recovery and no single point of failure. And uh uh then obviously like uh in case like 12:40 12 minutes, 40 seconds anything happens like our entire team is there to support the customers uh to the best of their ability. So uh like we we 12:49 12 minutes, 49 seconds bring in uh uh everything according to like how all the public clouds like throughout the world do. 12:57 12 minutes, 57 seconds Got it sir. answer like if we have any update on the software business like are there any PC's that are currently running on on the software side? 13:08 13 minutes, 8 seconds Uh so uh like no immediate updates in terms of like uh basically like we continue to do what we have been doing 13:16 13 minutes, 16 seconds like we continue to build our software, we continue to talk to a lot of uh uh customers, enterprise customers 13:24 13 minutes, 24 seconds and we keep validating the requirements and uh then we continue to kind of like demonstrate our capabilities and uh uh 13:34 13 minutes, 34 seconds hopefully in the medium term we'll start seeing some action on the software licensing front for the sovereign AI 13:41 13 minutes, 41 seconds cloud that uh AI cloud platform that we are packaging currently and we continue to heavily invest into that 13:50 13 minutes, 50 seconds and so what is the expected timeline for black fields to go live and from which quarter we can expect the revenue to kick in. Um so like we are expecting in 13:59 13 minutes, 59 seconds the uh hopefully uh before the end of Q4 we should be able to uh go live uh with 14:07 14 minutes, 7 seconds the black belts that we have already uh procured and uh we continue to expand the black bel capacity. 14:15 14 minutes, 15 seconds Thank you so much. I will join back. 14:21 14 minutes, 21 seconds Thank you sir. Our next question come from the line of Bhavya Gandhi from Bajage alternates. Please go ahead. 14:28 14 minutes, 28 seconds Yeah, thanks for the opportunity. Just wanted to understand how is the payment cycle with respect to India mission. uh 14:35 14 minutes, 35 seconds how frequently have they started paying in terms of service received by the India mission has uh actually 14:43 14 minutes, 43 seconds recalibrated uh uh in the latest uh documents that they have produced that the payment cycle they have shifted from 14:50 14 minutes, 50 seconds a quarterly to a monthly. So we hope to see the benefits of that soon. So we are 14:57 14 minutes, 57 seconds working towards uh uh kind of like uh finalizing and figuring out like basically like how those payment cycles would eventually work for us. But like I 15:05 15 minutes, 5 seconds believe that like that shift is inevitable from quarterly to monthly. So which is good for us. 15:13 15 minutes, 13 seconds Got it. And when can we expect the next lot of Blackwell GPUs to arrive because I think we are buying in we have already 15:20 15 minutes, 20 seconds received we have already received in our Chennai location 1,024 uh B200 GPUs and uh we are in the 15:29 15 minutes, 29 seconds process of uh uh kind of like deploying those and uh hopefully uh in the Q4 itself like we expect to see the 15:38 15 minutes, 38 seconds deployment completed and uh uh then we can uh start uh seeing seeing like some action action and traction in terms of 15:46 15 minutes, 46 seconds like orders uh coming in uh from various places. 15:51 15 minutes, 51 seconds Okay. And so can we expect like uh order win could be possible in Q1 FI27 onwards for these thousand blackwell GPUs? 16:02 16 minutes, 2 seconds Uh keeping our fingers crossed like we are hoping as soon as possible. 16:08 16 minutes, 8 seconds Okay. And have we ordered the next batch of uh Blackwell GPUs for further expansion? 16:14 16 minutes, 14 seconds So that's an ongoing process. So like uh there are multiple types of GPUs in Blackwell. So we are working on 16:22 16 minutes, 22 seconds expanding B2C also and we will continue to expand the capacity on other SPUs as well. 16:30 16 minutes, 30 seconds Got it. And just one last thing uh with respect to EITA margins if you can just provide some light when can we touch the 16:36 16 minutes, 36 seconds 70% AITA margin uh if you look on a Y basis there has been depth in the AETA margins so if you can just highlight 16:45 16 minutes, 45 seconds what was the um I I think like quarter on quarter now like we have extended the AITA margins and I think it's a matter of like 16:54 16 minutes, 54 seconds establishing the scale at which point like we will be able to hit the uh expected number as per the business 17:02 17 minutes, 2 seconds uh which is closer to 70 than closer to 55 or 60 today. 17:09 17 minutes, 9 seconds Got it. Got it. And would you like to guide for next year MR figure? 17:15 17 minutes, 15 seconds So like I guess like we'll uh wait for the next fall to do that guidance I guess. 17:23 17 minutes, 23 seconds Got it. Got it. Fair enough. All the best to the team. I'll get back in the queue. Thank you. Thanks. 17:30 17 minutes, 30 seconds Thank you. Our next question come from the line of Bhat Gulati from Dalal and Vocha. Please go ahead. 17:38 17 minutes, 38 seconds Yeah. Hi sir, thank you for the opportunity. I just have a couple of questions. Firstly, can you uh can you line out a capeex for 20? What will our 17:46 17 minutes, 46 seconds capeex end at for 26 and then 27 and then if you could also give us a capeex guidance for 28 if possible? 17:55 17 minutes, 55 seconds Okay. So uh I guess like we'll need to kind of like wait for a couple of weeks for us to kind of like delineate u all 18:05 18 minutes, 5 seconds these things. So we are uh kind of like working with our very strong partners 18:12 18 minutes, 12 seconds and suppliers to kind of like build up uh the capacity. So we don't want to prematurely 18:20 18 minutes, 20 seconds uh announce things today. So let us wait for a couple of weeks and uh we will come up with like basically like what all we are doing. 18:30 18 minutes, 30 seconds Okay. Got it. So any guidance you can give for 26 and 27 a broad guidance also what we'll end at 26 at least what 18:37 18 minutes, 37 seconds so we don't want to give the guidance today. So like uh hopefully like again 18:44 18 minutes, 44 seconds like uh uh give us like a uh couple of weeks or uh like maybe by the uh by the time we are talking about the next 18:52 18 minutes, 52 seconds quarter like we'll uh we'll put put together a guidance. 18:56 18 minutes, 56 seconds Okay, fair enough. So on on the 5,000 plus GPUs that we've mentioned in our PPT, so uh this uh these GPUs that we'll 19:06 19 minutes, 6 seconds be deploying will be black 12. So do we see orders coming majorly majorly majorly the expansion is from the blackwell variety of GPUs? 19:13 19 minutes, 13 seconds Yeah. So do we see orders coming on also in Q4 or will this roll over into Q1 of FI27? Then 19:21 19 minutes, 21 seconds let's see we'll continue updating everyone as we uh kind of like go into uh the deployment phase. So we've just 19:31 19 minutes, 31 seconds uh kind of like received the hardware in last couple of days. So I think like give us like some time we will uh update everybody. 19:40 19 minutes, 40 seconds All right. And just one last question on terms of the LNT order that we've won in this quarter. Are there any other such 19:47 19 minutes, 47 seconds orders in pipeline for the coming uh near term? 19:52 19 minutes, 52 seconds Um see like we obviously continue to work on like with a lot of customers through LNT and directly as well. So 20:01 20 minutes, 1 second obviously like as and when the orders rectify we will inform uh everyone. So that's the goal. 20:10 20 minutes, 10 seconds Okay. Okay sir. Thank you. That's about it. 20:15 20 minutes, 15 seconds Thank you. Our next question comes from the line of Vun Gandhi from Fidient Asset Management. Please go ahead. 20:23 20 minutes, 23 seconds Hi Darun. Could you help me understand how much of uh India AI mission contribution is happening to our reported MR if any and additionally with 20:32 20 minutes, 32 seconds the latest uh B200 ships what would be the new peak MR that we expect to achieve? 20:39 20 minutes, 39 seconds Okay. So uh like mostly in the last quarter like uh the India mission contribution has been uh muted. I think 20:48 20 minutes, 48 seconds like in December it would have been the most value. Uh but like we expect obviously Q4 to be massively different 20:56 20 minutes, 56 seconds as the both the uh customers uh one through India emission uh continue to scale up in January. So that MRR 21:05 21 minutes, 5 seconds percentage number uh should be like uh much higher. So uh yeah so so basically 21:14 21 minutes, 14 seconds like that's an ongoing process. Now second like we don't want to kind of like give any kind of guidance today 21:22 21 minutes, 22 seconds like I think like over next couple of weeks in terms of capacity expansion what we are thinking and uh uh maybe 21:30 21 minutes, 30 seconds I just I just need the MR peak MR capacity do you uh that you would expect to achieve no guidance or as such just the peak 21:38 21 minutes, 38 seconds there is no there is no upper limit for us so like we don't want to limit ourselves by saying that like this this is what we 21:46 21 minutes, 46 seconds are going to only do. So like we don't have an upper limit in our mind. 21:52 21 minutes, 52 seconds All right. Uh secondly on the India AI mission contracts these are primarily focused on training workloads right now 22:00 22 minutes which we know are typically bury of India AI mission workloads are focused on building the LLM models for LLM 22:08 22 minutes, 8 seconds models for India. So I think like majority of that workload is going to be training workload. So that's the main focus of uh NDI vision as of today. 22:18 22 minutes, 18 seconds So what is the likelihood that the same LLM developers would also contract with us for inference workloads because the 22:24 22 minutes, 24 seconds implication here is that inference more stable revenue very very very likely we are already uh 22:31 22 minutes, 31 seconds working with the LLM builders uh to uh kind of like run their inference workloads with us. 22:39 22 minutes, 39 seconds Got you. And um so some of them are already running their instance workloads with us and many of the new ones will hopefully uh 22:48 22 minutes, 48 seconds are already uh uh working with our customers through our partners uh for 22:54 22 minutes, 54 seconds the inference workloads and uh we we continue to see the acceleration of this trend. 23:01 23 minutes, 1 second So if if someone is contracting for training workloads there's a very high possibility that they would also probability rather that they would also contract for inferencing workloads. 23:12 23 minutes, 12 seconds Am I absolutely got absolutely absolutely absolutely also Tarun uh in December we faced a major outage uh in the Mumbai servers. 23:20 23 minutes, 20 seconds So just wanted to seek some clarification on your end and if there's any major client loss uh due to the 23:27 23 minutes, 27 seconds outage and what steps have we taken to prevent such prolonged outages in the future. 23:35 23 minutes, 35 seconds Uh sure sure. So, so the couple of points over there like so basically like our plan was always to kind of like uh 23:44 23 minutes, 44 seconds migrate the customers from Mumbai which is a much smaller location than our uh uh Delhi NCR and uh Chennai locations. 23:52 23 minutes, 52 seconds So the plan was to definitely migrate those customers out. Now we are working on the plan to migrate them onto uh 23:59 23 minutes, 59 seconds newer and uh much stabler infrastructure. On the uh software and operational side like we have made quite 24:07 24 minutes, 7 seconds a few changes in terms of like increasing the uh investments into site reliability engineering and working with 24:15 24 minutes, 15 seconds uh like some of the uh backend vendors to kind of like strengthen uh uh our overall infrastructure. uh from a impact 24:24 24 minutes, 24 seconds point of view I think like uh over a period of time uh it would become clear like what is the impact we are seeing 24:32 24 minutes, 32 seconds but uh as I said earlier that like this was like a uh substantially smaller location overall for our infrastructure 24:41 24 minutes, 41 seconds so we don't see intent uh we don't expect to see a material uh revenue impact over the medium-term and the long 24:49 24 minutes, 49 seconds term but that being said like we are very very conscious of uh uh working very hard towards making sure that like 24:58 24 minutes, 58 seconds u uh these kind of incidents are uh completely avoided and uh we are able to 25:05 25 minutes, 5 seconds do better in terms of like providing uh support to our customers before an incident happens in terms of uh helping 25:13 25 minutes, 13 seconds build an architecture that will withstand any kind of failures on a single zone for us in the future. 25:21 25 minutes, 21 seconds understood and if I could squeeze one last question since we spoke in the previous quarter the AI accelerator industry has witnessed a significant 25:30 25 minutes, 30 seconds update you know with the Google's uh Google's TPUs becoming the centerpiece of conversation uh for better cost 25:36 25 minutes, 36 seconds efficiency and Nvidia's hardware mode is now being contested and the broad expectation is that uh AS6 in general 25:44 25 minutes, 44 seconds the adoption would pick up materially now my question to you as the management of E2E is would you be also so open to 25:52 25 minutes, 52 seconds adopting AS6 within your infrastructure if the industry trends towards that direction or would E2E remain an NVIDIA 25:59 25 minutes, 59 seconds exclusive partner and I asked this because both choices have clear implications on business dynamics uh including capex ROIC's and I also 26:08 26 minutes, 8 seconds understand that it's very premature to state any conclusive comments but all I seek is your thoughts on the topic. 26:16 26 minutes, 16 seconds No fair clear fair. 26:18 26 minutes, 18 seconds So uh one is accelerated computing is here to stay. Accelerated computing is going to be majority of the workloads uh 26:26 26 minutes, 26 seconds going online in the future. Uh second part is that like what is it that the customers are demanding today? What is 26:33 26 minutes, 33 seconds the road map of our customers? Uh what is it that our customers are looking at? 26:38 26 minutes, 38 seconds I think that is more relevant to uh basically like what we end up adding the 26:44 26 minutes, 44 seconds capacity on. So like in the near future we again continue to see that like basically Nvidia will be majority of our 26:53 26 minutes, 53 seconds portfolio a vast majority of our portfolio and uh uh that is based on the inputs that we continue to get from our customers. 27:05 27 minutes, 5 seconds Understood. Uh okay got you. Thank you. 27:08 27 minutes, 8 seconds Basically like you see customer feedback anytime changes where a customer when customers start demanding that like look like can you 27:16 27 minutes, 16 seconds consider X or Y or Z vendor like obviously we are very very happy to provide what the customers want. So uh 27:25 27 minutes, 25 seconds what we are seeing today as of today like uh uh is what we have spoken about. 27:31 27 minutes, 31 seconds Thank you very much. I'll get back in the queue. 27:35 27 minutes, 35 seconds Thank you ladies and gentlemen. In order to ensure that the management will be able to address question from all the 27:43 27 minutes, 43 seconds participant in the conference, kindly limit the question to two question per participant. Should you have a follow-up question, please rejoin the queue. 27:53 27 minutes, 53 seconds Our next question come from the line of group from electron PMS. Please go ahead. 28:01 28 minutes, 1 second Hello. 28:02 28 minutes, 2 seconds Am I audible? Yeah. My first question was how much capeex have we done for the procurement of 1024 28:10 28 minutes, 10 seconds Blackwell series and how how have we funded that? 28:15 28 minutes, 15 seconds Uh okay I'll let Nathan answer this question. 28:19 28 minutes, 19 seconds So for the blackwell series uh roughly the capex would be in the range of 6 600 to 650 cr part of which is funded 28:27 28 minutes, 27 seconds through a term loan which would uh we have taken from uh the access and sdfc bank. 28:34 28 minutes, 34 seconds Okay and last time you had guided that 35 to 40 crores would be the peak MRR for the current 3600 GPUs. So do we still stick to that guidance? 28:48 28 minutes, 48 seconds Yes, more or less answer on that uh we had guided that at 35 to 40 crores uh MRR uh 65 to 70 would 28:58 28 minutes, 58 seconds be the beta margins. So do we expect in next quarter we can hit that? 29:04 29 minutes, 4 seconds Uh we are definitely hoping for that. 29:08 29 minutes, 8 seconds Okay. Uh and one more what was the utilization rate this quarter? 29:15 29 minutes, 15 seconds I think at the December end we are touching the utilization roughly around 60 to 65%. 29:23 29 minutes, 23 seconds Okay. Uh and so the per hour rent for Blackwell series would be much higher than the current. So how much could that 29:31 29 minutes, 31 seconds be? Any ballpark number? broadly broadly what we are seeing in the international market 29:38 29 minutes, 38 seconds today is like anywhere between like uh $3 to $4 uh approximately for slightly 29:46 29 minutes, 46 seconds uh longerterm contracts. So like we are also u hoping to kind of like achieve those kind of numbers. 29:55 29 minutes, 55 seconds Okay. And sir uh any further sorry to interrupt you ma'am but limit the question to you can rejoin the queue. 30:02 30 minutes, 2 seconds Thank you. Our next question come from the line of Neil Manut from Pico Capital. Please go ahead. 30:12 30 minutes, 12 seconds Hi sir, am I able? Yes. Yes, please go ahead. 30:16 30 minutes, 16 seconds Thank you for your call. So other than the end line that we got from LND can 30:22 30 minutes, 22 seconds any sense of also because I'm so sorry Mr. Neil but your voice is breaking. We can't hear you properly. 30:33 30 minutes, 33 seconds Is it better now? 30:36 30 minutes, 36 seconds You may continue your question. We'll see. 30:38 30 minutes, 38 seconds Yeah. So sir, I was asking other than our enterprise client that we got through L&T, can you give us a sense of our our other enterprise client 30:46 30 minutes, 46 seconds conversions like not exact numbers but we are 6 months from startups to enterprises. A broad sense. So we we 30:55 30 minutes, 55 seconds continue to work with like a lot of enterprises and uh uh AI native companies and we continue to see u quite 31:04 31 minutes, 4 seconds a few conversions. Now uh when the conversions are substantial obviously we'll continue to uh inform 31:13 31 minutes, 13 seconds okay and sir the new capacity of blackwells that you've acquired are there solely for the India mission or we 31:20 31 minutes, 20 seconds seeing fractions uh for PCI mission I think like uh a majority of those 31:29 31 minutes, 29 seconds would go to India mission for sure so uh but like we continue to build capacity even beyond India emission as well. 31:38 31 minutes, 38 seconds Okay. And so the revenue potential from these uh thousand blackwell GPUs that we sense what is like the peak sense that we could generate from this any number. 31:50 31 minutes, 50 seconds Yeah. From a ARR perspective we are looking at like u somewhere close to uh maybe about 250 odd crores per year or 31:58 31 minutes, 58 seconds so with,244 black. 32:02 32 minutes, 2 seconds Okay. And uh one sorry to interrupt you sir please limit your question to two question only. Thank you. Okay ladies 32:11 32 minutes, 11 seconds and gentlemen ladies and gentlemen just a gentle reminder please limit your question to two question per participant. 32:19 32 minutes, 19 seconds Our next question comes from the line of Hish and individual investor. Please go ahead. Hello. 32:28 32 minutes, 28 seconds Yeah yeah. Hi please go ahead. 32:31 32 minutes, 31 seconds Yeah. Uh so there are two questions uh how you see the demand going ahead particularly in India X India I mission 32:41 32 minutes, 41 seconds and the second question is as voice agents are picking up how you see the infrance business coming to E2. 32:50 32 minutes, 50 seconds So we are very very positive about both the things. So one is of course the global demand uh is like kind of like uh 32:58 32 minutes, 58 seconds uh going ahead at a very uh great pace and so is the Indian demand like so in the recent past like we've seen like u 33:07 33 minutes, 7 seconds increased demand uh on capacity and uh uh of course the demand at India mission is also definitely expected to go up. 33:18 33 minutes, 18 seconds Okay. And uh do you see um other than India enterprise are demanding more GPUs or preferring our platform for inference? 33:29 33 minutes, 29 seconds Yes definitely. So uh like in a way that like we are uh working with like a lot of partners uh directly and through uh 33:38 33 minutes, 38 seconds our big partners uh LNT. So we are seeing that like we should be able to kind of like set up uh like a 33:46 33 minutes, 46 seconds marketplace of insurance providers on top of E2 networks platform. 33:52 33 minutes, 52 seconds Okay. Thank you. And uh how you see the voice agents are picking up because they required a lot number of GPUs. 34:00 34 minutes I think like there is a lot of interest in the voice agents like so I think like that is the first major use case in India that is like definitely going 34:09 34 minutes, 9 seconds online. uh where people are experimenting with it and like they are putting uh pieces of that in production. 34:16 34 minutes, 16 seconds I think that only going to go up from there. 34:20 34 minutes, 20 seconds Okay. So uh are customer preferring us means are any PC's running at our end or uh can you give some highlight on this? 34:28 34 minutes, 28 seconds Uh so we don't want to talk about specific customers like obviously we are working with uh our uh uh partners over 34:37 34 minutes, 37 seconds here to kind of like work with like quite a few customers. Okay sir. Thank you. 34:47 34 minutes, 47 seconds Thank you. Our next question come from the line of Abhishek from Incred Capital. Please go ahead. Yeah. Hi Abishek. 34:55 34 minutes, 55 seconds Hi sir. Thank you for the opportunity and congrats on a great quarter. Um sir, two questions. Uh the first one is um 35:03 35 minutes, 3 seconds you know uh this uh if I look at the MR for December 35:11 35 minutes, 11 seconds uh and given the fact that the India mission started in December. So it seems 35:17 35 minutes, 17 seconds that we were able to sell our capacity uh for shorter projects uh in the 35:25 35 minutes, 25 seconds quarter. So can you just elaborate if uh you know this short cycle demand has recovered because if I remember it 35:33 35 minutes, 33 seconds correctly a year ago we had highlighted that some of the demand uh was impacted. 35:40 35 minutes, 40 seconds That is the first question and uh the second one sir is on the LNT partnership uh which you have highlighted in the 35:48 35 minutes, 48 seconds presentation. So it says the one-year GPU service starting Jan 6. So should we see the incremental ramp up in the March 35:56 35 minutes, 56 seconds quarter uh for the full quarter from this order sir? 36:02 36 minutes, 2 seconds Uh okay okay. So one is of course like in the uh quarter ending December like majority of revenue was non India 36:10 36 minutes, 10 seconds revenue uh definitely that indicates the uh kind of like uh uh our increased ability to 36:18 36 minutes, 18 seconds capture more short-term demand than in the past. Uh so that is two and uh third 36:26 36 minutes, 26 seconds is that like uh uh next quarter obviously we are expecting uh majority of India workloads to ramp up uh 36:34 36 minutes, 34 seconds hopefully by end of January more or less. So majority of those workloads are expected to ramp up and uh third is that 36:41 36 minutes, 41 seconds like we continue to see retraction uh with more enterprise customers. So hopefully that should also be additive. 36:51 36 minutes, 51 seconds So we are very very hopeful uh about the next couple of quarters. 36:58 36 minutes, 58 seconds Uh this is helpful sir and just a broader m um on um you know the global 37:07 37 minutes, 7 seconds uh demand trends. So with uh you know China uh you know now US allowing 37:13 37 minutes, 13 seconds exports of GPUs to China will this create uh uh you know some some form of 37:21 37 minutes, 21 seconds shortage or demand acceleration uh for infrastructure providers. 37:28 37 minutes, 28 seconds Uh yes both like obviously like if a large enough uh country comes in with additional demand then like both those 37:37 37 minutes, 37 seconds trends are expected uh in terms of like uh some level of shortage but then uh as 37:44 37 minutes, 44 seconds we have seen in the past that like um the partnerships matter over there like where the partners support each other. 37:51 37 minutes, 51 seconds So we continue to expect to get like full level of support from all our partners. So that is one and second we 38:00 38 minutes are definitely seeing like a lot of demand acceleration because of uh that amongst other reasons. So other reasons 38:09 38 minutes, 9 seconds being like the uh we are now in a far more mature part of the AI uh inference and training cycle uh than in the past. 38:18 38 minutes, 18 seconds So now we are seeing like a lot more maturity in terms of like the sustainability of the demand that we are seeing. 38:30 38 minutes, 30 seconds U very helpful and just one last I'm so sorry to interrupt you sir but uh please limit your question to two. You can rejoin the queue. 38:36 38 minutes, 36 seconds Okay I'll rejoin in the queue. Thank you. Thank you. 38:41 38 minutes, 41 seconds Thank you. Uh next question come from the line of Nicl Kotari from Alara Capital. Please go ahead. Hello. Yeah. Hi. Hi. Yeah. 38:50 38 minutes, 50 seconds Hello sir. Thank you so much for the opportunity. So, so uh my questions are regarding some bookkeeping questions. 38:57 38 minutes, 57 seconds So, uh first is uh do we expect the useful life of assets to be more than 6 years or are they expected to be replaced entirely post 6 years? 39:08 39 minutes, 8 seconds No. No. Definitely the assets continue to run and operate and uh there is no uh like uh end of life until the asset 39:17 39 minutes, 17 seconds continues to operate the asset continues to sell and asset continues to generate income. 39:23 39 minutes, 23 seconds Understood. So what are our expectations like how long uh should we expect for the asset to we have seen domestic and international 39:32 39 minutes, 32 seconds providers like uh looking at periods of around 10 11 years also for some of these assets. Uh but like we are very 39:40 39 minutes, 40 seconds very hopeful that like 7 to 8 years is like a very reasonable expectation for these assets to continue to generate uh business for us. 39:49 39 minutes, 49 seconds Understood. So, so what are we are we expecting down the line like uh giving this rate of useful life and this rate of depreciation. 40:00 40 minutes We continue to be a technology business and uh we continue to expect our uh ROE expectations based on us being a uh 40:09 40 minutes, 9 seconds technology provider who is able to add a lot of value addition to our customers in terms of our uh software and our 40:16 40 minutes, 16 seconds ability to help them on the training workloads making them more efficient uh ability to help them in terms of 40:23 40 minutes, 23 seconds organizing their data etc. So there are a number of number of capabilities we bring to the table in terms of like 40:31 40 minutes, 31 seconds through our people and software and uh that will continue to uh add to the uh uh returns for us in the longer run. 40:43 40 minutes, 43 seconds Okay. So should we expect uh ROE is greater than or north of 20%. 40:52 40 minutes, 52 seconds broadly that's that's the way we look at any technology business. So yes absolutely understood and uh when do we expect to achieve that 3 4 years down the line? 41:06 41 minutes, 6 seconds So I guess like uh look back is better than like me saying when do we achieve it so let let's get to it and then we 41:14 41 minutes, 14 seconds look back and say yeah it has been done or not. 41:17 41 minutes, 17 seconds Understood. Understood. Okay sir. Thank you so much. That's it from my side. Yeah. Thanks. Yeah. 41:24 41 minutes, 24 seconds Thank you. Our next question come from the line of Rajkumar Vidinatan from RK Investment Management Limited. Please go ahead. 41:32 41 minutes, 32 seconds Yeah. Good afternoon sir. Thanks for the opportunity. Uh am I audible? Uh yes sir please go ahead. 41:40 41 minutes, 40 seconds Yeah. Uh sir just couple of question. Uh so first question is what is the util getting for fi 2627? 41:50 41 minutes, 50 seconds Uh sorry I didn't get the question like what is the what is the utilization uh we are you said that the utilization will be around 41:57 41 minutes, 57 seconds 70% uh you know by end of Q4 26. So for 26 27 what is the end utilization number we are looking at? 42:06 42 minutes, 6 seconds Uh see that goes into a bit of like uh uh speculative territory but then given the fact that like we are very very 42:14 42 minutes, 14 seconds focused on uh increasing uh the utilization. So we continue to 42:20 42 minutes, 20 seconds target like somewhere between uh uh 80 to 90% of the utilization to be done at 42:28 42 minutes, 28 seconds uh some point of time in the uh in the in the course of the next financial year. 42:36 42 minutes, 36 seconds Okay. Uh the reason for asking this question is because in the last call you mentioned the GPU infrastructure acquisition you will be both prudent as 42:44 42 minutes, 44 seconds well as aggressive. Uh prudent in terms of where you have we continue to have the same strategy like we are prudent as well as 42:51 42 minutes, 51 seconds aggressive. So prudent to ensure that like the uh there is balance and uh 42:58 42 minutes, 58 seconds aggressive to ensure that like we are capturing as much of the demand as we can. 43:03 43 minutes, 3 seconds Yeah. So the question is just to labor on the same question. Uh uh I mean you know I I heard that there are some uh uh 43:11 43 minutes, 11 seconds you know expected increase in memory prices. So do you expect that to reflect on the GPU as well and if that is kind of for will you become more aggressive? 43:21 43 minutes, 21 seconds Some impact would be there in terms of price points on GPUs because of memory. 43:27 43 minutes, 27 seconds Uh but then like these had to balance out uh over a period of time. So like uh see we have seen these hardware cycles 43:35 43 minutes, 35 seconds again and again uh a lot of times in the past over like last 16 17 years. So where it looks like the end of the world 43:44 43 minutes, 44 seconds where like you're not getting the hardware whether it is RAM or other types of hardware and then in a couple of quarters like the uh thundering herd 43:53 43 minutes, 53 seconds goes away and then like things settle down to normal. So, so basically like uh I don't see like a long-term impact. In 44:01 44 minutes, 1 second the medium term, of course, things tend to balance out like the supply and demand balances out and uh uh the 44:08 44 minutes, 8 seconds irrationality in prices goes away. So, like it's always a cycle. You have to kind of like just run through the entire 44:16 44 minutes, 16 seconds cycle where uh you leverage your partnerships to kind of like do better for yourself and for your customers. So 44:25 44 minutes, 25 seconds that's that's the way we have continued to operate like so we'll continue to operate the same way leveraging our partnerships and making sure that we are 44:33 44 minutes, 33 seconds able to pass on the benefits of whatever we are able to derive from our partners to our customers. 44:40 44 minutes, 40 seconds Okay, got it sir. So this is since we are following sorry to interrupt you sir but uh please this is the second question only. 44:49 44 minutes, 49 seconds So the question is yeah please go ahead please go ahead. 44:52 44 minutes, 52 seconds Yeah, they're following the SAS model. Uh, so potentially can we expect to sell more 44:58 44 minutes, 58 seconds than 100% of our capacity? I mean see like it's a it's a elastic uh kind 45:08 45 minutes, 8 seconds of like both demand and supply. So it is always possible to build some level of supply in the short term uh for 45:16 45 minutes, 16 seconds customers who are kind of like demanding capacity that you may not have available immediately next day but like if it is 45:23 45 minutes, 23 seconds required in the next couple of weeks like you always have the ability to sell that capacity. 45:29 45 minutes, 29 seconds Oh okay. Thank you. Also it's like these are all approximate numbers like when you say a particular per hour price or a particular SPO price like again it 45:37 45 minutes, 37 seconds depends on the same hardware being utilized in a number of different ways. 45:42 45 minutes, 42 seconds So that results in like a lot of differential pricing. So ultimately like there is no hard limit on say a 45:50 45 minutes, 50 seconds particular MR or AR capacity. So there is enough elasticity over there to go both up as well as down. 45:58 45 minutes, 58 seconds Yeah. So the reason is you will have a better operating leverage and also there will not I mean you'll be selling more on a concurrent licensing model. So that 46:07 46 minutes, 7 seconds is the reason I asked you know whether we'll be able to uh you know have a higher capacity. 46:12 46 minutes, 12 seconds It's not as much as fast obviously uh but like uh definitely there is some level of electricity which is available. 46:19 46 minutes, 19 seconds So it's definitely not comparable to fast that you can go uh like uh uh a huge multiplier up or down but like uh 46:28 46 minutes, 28 seconds definitely on infrastructure there is some level of elasticity. Okay, got it sir. Thank you so much. 46:40 46 minutes, 40 seconds Ladies and gentlemen, in order to ensure that the management will be able to address question from all the participant in the queue, kindly limit 46:48 46 minutes, 48 seconds the question to one question per participant. Should you have a follow-up question, please rejoin the queue. 47:08 47 minutes, 8 seconds Ladies and gentlemen, in order to ensure that the management will be able to answer all the question from the participant, please limit the question to one question per participant. 47:19 47 minutes, 19 seconds Our next question come from the line of 47:26 47 minutes, 26 seconds Nishan Jooshi from Equisense Advisers Private Limited. Please go ahead. 47:31 47 minutes, 31 seconds Uh so the first question is that recently there was a news uh in which the government is planning to go for another round of bidding for around 47:39 47 minutes, 39 seconds 15,000 GPUs uh blackwell GPUs. Uh sir, at what time frame we expect this 47:47 47 minutes, 47 seconds bidding to take place? And uh in previous calls also you have said that these are all these are all public announcements. I think like uh the 47:55 47 minutes, 55 seconds current date for submitting the bids is I believe like 18th of January. Uh so this is all public information and uh so 48:04 48 minutes, 4 seconds this continues to be a very continuous empanelment process on AI mission. So we continue to kind of like provide our 48:12 48 minutes, 12 seconds inputs at each uh level of uh participation. So uh so that that that that is definitely expected to kind of 48:21 48 minutes, 21 seconds like evolve all the way in. So in a way I think it's a projection of demand that we are seeing from India mission that 48:27 48 minutes, 27 seconds like there is current demand of another 15,000 GPUs and that's not the end of it is what we understand. 48:37 48 minutes, 37 seconds uh sir I mean is this the part of original 10,000 K and plus 8,000 K of uh uh the bidding which took place or it is besides that? 48:46 48 minutes, 46 seconds Yeah, I think uh we have seen enough news that like uh there is uh I don't think uh our interpretation is that like 48:54 48 minutes, 54 seconds the government is not saying that like we are limiting the AI mission to 10,000 crores. I think in a way that was like a 49:00 49 minutes initial allocation. So I think uh like going out on a limp over here like I think like uh Indian government intends 49:08 49 minutes, 8 seconds to continue to support the AI mission in a big way. 49:13 49 minutes, 13 seconds So second query was uh what is our present uh capital work in progress and do we plan to raise any fresh equity in coming quarter? 49:24 49 minutes, 24 seconds See we always keep the market uh informed about our plan. So we'll continue to provide like uh uh the 49:32 49 minutes, 32 seconds information around any kind of uh fund raise uh that we do on the equity side. 49:40 49 minutes, 40 seconds But uh the query was sorry to interrupt you sir uh but please rejoin the queue for more questions. Thank you. 49:49 49 minutes, 49 seconds An question come from the line of Akillesh Raat from Ridanta Vision Private Limited. Please go ahead. Yeah. Hi. 49:58 49 minutes, 58 seconds Uh thank you for the opportunity. So my question is at what utilization level do these new uh blackwell GPU assets are uh 50:05 50 minutes, 5 seconds start to become uh evict positive on the encrab basis. 50:10 50 minutes, 10 seconds Um I guess like Nathan would be able to answer this uh question better than me. 50:17 50 minutes, 17 seconds No from a overall perspective the additional IIDA for the new GPU would tend to around to around 75 to 80%. So 50:25 50 minutes, 25 seconds there is a very good headroom across in terms of with a small capacity utilization they would be breaking even at IIDA levels. 50:36 50 minutes, 36 seconds Okay. Okay. Okay. And uh if I can I can can I ask one more question like? 50:42 50 minutes, 42 seconds Yes sure please go ahead. Uh so uh like is your current depreciation guidance assuming the immediate utilization or does it already factor in the 50:51 50 minutes, 51 seconds commissioning lag if is there any uh like to commission the GPUs? 51:00 51 minutes I think this is more of a look back question than u uh a question that we can like very closely predict. So I 51:10 51 minutes, 10 seconds guess like uh let's let let's look back at this question by the end of the next quarter. 51:17 51 minutes, 17 seconds Okay. Okay. Thank you. Thank you. That's it from the from my all the very best for the upcoming quarter. Thank you. Thank you. 51:24 51 minutes, 24 seconds Thank you sir. Our next question comes from the line of Debas Mazumar from Swan Investment. Please go ahead. 51:33 51 minutes, 33 seconds Yeah. Hi. Hi Dashish. 51:34 51 minutes, 34 seconds Yeah. Hi Dun. Thank you so much for taking my question. Uh so uh this 35 cr month monthly uh run rate revenue that you are thinking of achieving in March 51:43 51 minutes, 43 seconds 27 I'm sorry March 26 uh what is the current capacity utilization that will be reaching on the 1,100 K of gross 51:51 51 minutes, 51 seconds block that you have mentioned at the end of H2. 51:55 51 minutes, 55 seconds Yes. So I think the 4,000 or the 4,000 installed capacity. Yeah. 52:01 52 minutes, 1 second Yeah. Yeah. So by end of uh December the current salt capacity I think like we reached about like 60 65% of utilization 52:10 52 minutes, 10 seconds that was mentioned by Nathan. So that's the current uh data and uh hopefully uh 52:17 52 minutes, 17 seconds in the next quarter that utilization percentage should increase. 52:20 52 minutes, 20 seconds Okay. So is it fair to assume that uh on the current 4,000 GPU unit that you have currently installed the MRR could be 52:29 52 minutes, 29 seconds around 50 55 KS at the best case scenario. 52:34 52 minutes, 34 seconds Um so we uh like okay like so uh so these are all elastics. So in that sense 52:41 52 minutes, 41 seconds like uh theoretically if it is possible probably the answer is yes. But like practically I think like we are talking 52:49 52 minutes, 49 seconds about like uh for the March time frame we are like looking at like 30 to 40 over here and because uh Tarun the question why 52:58 52 minutes, 58 seconds I'm coming to is because if you are reporting 3540 K of monthly run rate then you will be reporting around 4 400 53:06 53 minutes, 6 seconds K of top line and 250 K of AIDA uh then your incremental depreciation doesn't 53:12 53 minutes, 12 seconds justify this kind of investment. So, uh I'm just trying to understand what I'm missing. 53:22 53 minutes, 22 seconds um like okay like I think like you might want to uh kind of like uh look at the 53:28 53 minutes, 28 seconds numbers more closely and if in case like you want to take it offline with uh our CFO uh probably you can do that like so 53:39 53 minutes, 39 seconds my understanding is that like basically like uh the uh uh overall from a uh run 53:46 53 minutes, 46 seconds rate perspective like uh in the future the map definitely works out for 53:53 53 minutes, 53 seconds Okay. So uh uh okay and and the incremental investments that you have done the uh B hopper uh uh GPUs uh of 54:03 54 minutes, 3 seconds the 600 K investment what is the potential revenue or potential run that you are looking at there. 54:10 54 minutes, 10 seconds See, we uh are basing uh the projection of the ARR capability from those 1,024 54:17 54 minutes, 17 seconds GPUs based on like a uh bottom price. So uh I think that bottom number would be somewhere anywhere between like say 245 54:26 54 minutes, 26 seconds to 250 odd crores uh on a ARR basis. 54:31 54 minutes, 31 seconds Okay. Okay. Understood. So uh that means your uh with this thousand your incremental revenue would be almost uh similar to 54:40 54 minutes, 40 seconds so sorry sir but please limit a question to one question. So we have no problem no problem I will I will take it separately with this. Thank you. 54:47 54 minutes, 47 seconds Thank you so much. 54:50 54 minutes, 50 seconds Thank you. Our next question comes from the line of uh Shiti Saraf and individual investor. Please go ahead. 54:57 54 minutes, 57 seconds Uh hi s congratulations on the good set of results. I wanted to ask on the Jarus 55:04 55 minutes, 4 seconds Labs uh acquisition. You mentioned that uh it opens up a global opportunity. So if you could shed some light on what 55:12 55 minutes, 12 seconds sort of opportunity you're seeing in the global market. So what we have seen with uh uh Jarvis uh was that like majority 55:22 55 minutes, 22 seconds of their customers were uh operating from outside India and uh that is what made us very very interested in uh kind 55:31 55 minutes, 31 seconds of like acquiring their assets uh including their software and people and uh the hardware. So essentially like uh 55:41 55 minutes, 41 seconds they've built like a uh highly integrated platform and product that can kind of like onboard people uh uh a 55:51 55 minutes, 51 seconds specific set of uh customers uh who operate uh with lower AR pool but like 55:57 55 minutes, 57 seconds at a higher uh margin and uh people who prefer like completely self-service without having to kind of like speak at 56:07 56 minutes, 7 seconds all to any kind of support. So mostly at E2E we tend to work with larger customers with a bit more handholding 56:16 56 minutes, 16 seconds compared to Jarvis. So with that respect like we expect Jarvis to get scaled up 56:22 56 minutes, 22 seconds in the medium term outside India and uh uh add to the overall capabilities of the uh E2E platform. 56:34 56 minutes, 34 seconds Understood. That's helpful. Secondly, do you see uh where do you see the company going or where would you want to spend 56:42 56 minutes, 42 seconds your efforts in terms of the next years or a couple of years let's say because obviously the enterprise opportunity is large and it's large enough uh any sort 56:51 56 minutes, 51 seconds of R&D you're doing uh on what next uh apart from targeting enterprise segment 56:58 56 minutes, 58 seconds we we continue to heavily invest uh in our software and AI capabilities 57:06 57 minutes, 6 seconds So that is one major focus area for us and uh second focus area is to create 57:13 57 minutes, 13 seconds standardsbased infrastructure uh including the software layers on top of that uh that people are able to 57:21 57 minutes, 21 seconds utilize very quickly and uh are able to get like a great uh return return on deployed resources uh very very quickly. 57:32 57 minutes, 32 seconds So uh kind of like that that remains our focus. How to generate the ROI for our customers in terms of like if they get 57:41 57 minutes, 41 seconds resources compute resources on our cloud public cloud platform or private cloud platform how they can achieve a better 57:48 57 minutes, 48 seconds utilization and uh do what they came to do like faster and quicker compared to at other places. 57:58 57 minutes, 58 seconds Thank you so much. All the best. Thank you. 58:02 58 minutes, 2 seconds Thank you so much ladies and gentlemen due to the interest of the time that was the last question for today. I would like to end the conference over to the management for the closing comments. 58:11 58 minutes, 11 seconds Thank you and over to you sir. 58:13 58 minutes, 13 seconds Uh sure. Uh so thank you uh uh all of you uh who have joined the call today. 58:19 58 minutes, 19 seconds Once again I would like to thank our board of directors including independent directors. Uh thank all our partners, 58:26 58 minutes, 26 seconds all our vendors, uh all our customers and uh all of you our uh investors and 58:33 58 minutes, 33 seconds your families uh to have supported us in this journey and we continue to uh look 58:39 58 minutes, 39 seconds forward to uh the support of uh our entire team and uh uh all our ecosystem 58:47 58 minutes, 47 seconds partners and uh all our investors. So once again I would like to thank everyone. So thanks everyone for joining 58:54 58 minutes, 54 seconds the call and uh it's always enlightening to kind of like listen to the questions and gain insight. 59:02 59 minutes, 2 seconds So thank you everyone. Thank you sir. 59:06 59 minutes, 6 seconds Thank you on behalf of E2E Networks Limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.