Ecosmobilityhospitality Ltd — Q3 FY26

ECOS (India) Mobility & Hospitality Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=UbdvxlprvaY Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to EOS Mobility and Hospitality Limited Q3 FI26 earnings conference 0:08 8 seconds call. As a reminder, all participants line will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation 0:16 16 seconds concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please 0:24 24 seconds note that this conference is being recorded. I now hand the conference over to Miss Priyanka Bhagat from AD factors investor relation team. Thank you and over to you. 0:35 35 seconds Good evening everyone. A warm welcome to all of you and thank you for joining us today for ECOS India Mobility and 0:44 44 seconds Hospitality Limiteds quarter 3 and 9 month financial year 26 earnings conference call. We truly appreciate 0:52 52 seconds your time and continued interest in the company. We are pleased to have with us the senior management team led by our chairman and managing director Mr. 1:03 1 minute, 3 seconds Rajesh Lumba who will share his perspective on the company's performance for the quarter and the 9 months ended 1:10 1 minute, 10 seconds financial year 26. He is joined by our chief financial officer Mr. Hopy who 1:17 1 minute, 17 seconds will take us through the financial highlights. Before we begin, I would like to remind everyone that certain 1:25 1 minute, 25 seconds statements made during this call may be forward-looking in nature. These statements are based on current expectations and are subject to risk and 1:34 1 minute, 34 seconds uncertaintities that could cause actual results to differ materially. With that, I now hand over the call to Mr. Rajesh 1:43 1 minute, 43 seconds Lumba for his opening remarks. Over to you, sir. 1:48 1 minute, 48 seconds Thank you, Priyanka. Uh good evening and thank you for joining us today for Ethos India Mobility and Hospitality Limited 1:56 1 minute, 56 seconds Q3 and uh 9 month FY26 earnings conference call. 2:03 2 minutes, 3 seconds So before we begin, I would like to extend our sincere gratitude to all the participants who have joined earnings 2:10 2 minutes, 10 seconds call and a warm welcome to the ones who have joined us for the first time and thank you for the investors who have 2:18 2 minutes, 18 seconds shown continuous engagement and support to EOS. 2:22 2 minutes, 22 seconds to bring uh to begin with a brief overview of the company. As many of you are aware, EOS is a leading corporate 2:30 2 minutes, 30 seconds managed mobility solutions provider with a pan India presence. We offer comprehensive B2B transportation 2:37 2 minutes, 37 seconds services across two key segments. One is employee transportation services uh which we also call ETSs and the other is chauffeerdriven car rentals or CCR. 2:49 2 minutes, 49 seconds We currently operate in over 131 cities across India and have a presence in more than 30 countries 2:58 2 minutes, 58 seconds globally. Our clientele includes many Fortune 500 companies and BAC 500 3:08 3 minutes, 8 seconds companies, global capability centers, travel and event management companies along with fast growing Indian 3:16 3 minutes, 16 seconds enterprises andmemes as well as B2C customers availing our premium services. 3:22 3 minutes, 22 seconds These clients rely on AOS for scalable, safe and technologydriven mobility solutions. Our strategic focus remains consistent. 3:35 3 minutes, 35 seconds It is to drive sustainable growth by onboarding new clients. 3:40 3 minutes, 40 seconds At the same time, enhancing wallet share from existing relationships and clients and expanding our presence across new 3:48 3 minutes, 48 seconds geographies both domestically and internationally. 3:53 3 minutes, 53 seconds With that brief overview, now let me take you through the key highlights of Q3 FI26. 4:01 4 minutes, 1 second As we have reiterated over the past two or three quarters, we continue to make strategic investments to establish a 4:08 4 minutes, 8 seconds durable and differentiated position as a technologydriven globally relevant mobility platform. 4:17 4 minutes, 17 seconds These initiatives are delivering tangible operational benefits and are shaping the future evolution of a fully 4:24 4 minutes, 24 seconds digital eourse with increasing adoption of our end-to-end CCR platform. 4:31 4 minutes, 31 seconds Currently more than 21% of CCR bookings from our corporate clients are powered 4:38 4 minutes, 38 seconds by EOS cap drive pro APIs and customer app platforms. 4:44 4 minutes, 44 seconds During the quarter, we also launched our direct web booking portal, marking an important milestone in the company's ongoing digital transformation journey. 4:53 4 minutes, 53 seconds This platform extends the same enterprise grade enterprise enterprisegrade reliability and service standards that EOS mobility 5:01 5 minutes, 1 second is known for among large corporates to individual users and small and medium enterprises thereby broadening our reach beyond traditional corporate contacts. 5:13 5 minutes, 13 seconds From a geographical perspective, our business remains well diversified across major tier 1 and tier 2 cities 5:21 5 minutes, 21 seconds with Bangalore, Delhi, Gurugrand, Mumbai and Hyderabad today together contributing 60% of the company's total revenue. 5:34 5 minutes, 34 seconds Further strengthening our presence, last month we inaugurated our new second office in Bangaluru. An important step 5:42 5 minutes, 42 seconds in deepening our footprint in one of India's most significant enterprise and technology hubs. 5:49 5 minutes, 49 seconds This expansion aligns with Ecommobility's broader growth strategy of scaling responsibly across key metropolitan markets while continuing to 5:58 5 minutes, 58 seconds invest in people tech and governance-led mobility solutions. The new office enhances our ability to deliver 6:05 6 minutes, 5 seconds reliable, efficient and future ready mobility services to enterprise clients in the region. 6:13 6 minutes, 13 seconds This momentum was further reinforced with the onboarding of 39 new clients during the quarter. Many of which are 6:20 6 minutes, 20 seconds large enterprise clients. So uh typically if we talk about such clients, such clients involve a higher startup 6:27 6 minutes, 27 seconds and ramp up costs with margin expected to normalize over the next two to three quarters as operations scale up with these clients. 6:36 6 minutes, 36 seconds This takes our active client base to 1734, a growth of 34% compared to Q3 FY25. 6:47 6 minutes, 47 seconds These additions reflect the industrywide shift towards organized and reliable mobility partners. 6:54 6 minutes, 54 seconds Client retention remains strong with 55% of our first 9 months revenue contributed by clients associated with 7:02 7 minutes, 2 seconds EOS for over five years. This underscores the strength and longevity of our client relationships. 7:10 7 minutes, 10 seconds [clears throat] 7:11 7 minutes, 11 seconds Our fleet capacity expanded to over 19,000 vehicles including 997 owned units. 7:20 7 minutes, 20 seconds This enables a calibrated asset light approach ensuring capital efficiency while selectively deploying own fleets. 7:29 7 minutes, 29 seconds Total trip volumes first nine months stood at 3.84 84 million out of which 7:36 7 minutes, 36 seconds 1.3 million trips were undertaken in Q3 itself representing a healthy growth of 31.29% compared to Q3 FY25. 7:48 7 minutes, 48 seconds Now this reflects sustained enterprise demand and underscores our ability to scale rapidly and efficiently across high value mobility segments. 8:01 8 minutes, 1 second Uh turning very briefly to our financial performance, EGOS delivered resilient revenue growth of 22.8% 8:10 8 minutes, 10 seconds on consolidate basis yearon year in Q3 FY26. 8:16 8 minutes, 16 seconds This has been driven by strong performance across both employee transportation and shopper driven car rental segments. 8:22 8 minutes, 22 seconds This growth was supported by higher trip volumes and an improved premium mix during the quarter in the CCR segment. 8:31 8 minutes, 31 seconds Encouragingly operating cash flows remained aligned with our AITA and working capital days 8:38 8 minutes, 38 seconds stayed stable despite the higher scale of operations. Now this reflects truly disciplined execution and a strong cash flow management. 8:50 8 minutes, 50 seconds To conclude, we remain focused on strengthening our market position, garnering more market share 8:57 8 minutes, 57 seconds in a very highly fragmented industry, which we'll believe will drive sustained topline growth over the next medium to long term. 9:07 9 minutes, 7 seconds While margins may remain moderated in the near term as we continue to invest in technology and digital solutions and our people including leadership talent 9:17 9 minutes, 17 seconds and our shuffers. These investments are critical to building a scalable and resilient platform. 9:25 9 minutes, 25 seconds While the current phase reflects calibrated investments to accelerate the scale of our business and the growth, we 9:33 9 minutes, 33 seconds believe we are approaching an inflection point where operating leverage, the premium mix expansion and efficiencies 9:40 9 minutes, 40 seconds of scale will begin to reflect more meaningfully in the margins. 9:45 9 minutes, 45 seconds We are confident that this phase will mark an important milestone in the eco's growth journey. 9:50 9 minutes, 50 seconds Now with that, I will hand it over to our CFO Mr. him there. Thank you and over to you him. 10:03 10 minutes, 3 seconds Thank you sir and good evening everyone. 10:07 10 minutes, 7 seconds Now I will uh take through our financial performance for the quarter and 9 month ending ended uh December 20 uh 2025 10:17 10 minutes, 17 seconds and provide some contest around the key movements during during Q3 FI26 we reported 10:24 10 minutes, 24 seconds revenue of rupees 2060.71 million which representing 22.48% 10:32 10 minutes, 32 seconds yearon-year increase. This growth was driven by higher activity level across 10:39 10 minutes, 39 seconds both the CCR and ETS segments supported by sustained enterprise demand and better utilization across the fleet. We 10:48 10 minutes, 48 seconds continue to see healthy traction from our corporate clients which is 10:54 10 minutes, 54 seconds encouraging for the medium terms. Our AIDA four quarter stood at rupee 2 33.55 11:05 11 minutes, 5 seconds million reflecting a yearon-year growth of 8.05%. 11:11 11 minutes, 11 seconds Operating leverage from higher scale supported profitability. 11:16 11 minutes, 16 seconds However, margin were impacted by higher variable and vendor link cost associated with servicing incremental volume and onboarding large enterprises accounts. 11:29 11 minutes, 29 seconds As a result, aida margin for quarter was 11.33% compared to 12.85% in Q3 FI25. 11:38 11 minutes, 38 seconds This moderation reflect near-term cost pressure linked to growth related investment and drive for higher market share. 11:47 11 minutes, 47 seconds We have already initiated price adjustments, vendor rationalization and cost efficiency measure 11:56 11 minutes, 56 seconds which I expect will support margin improvement as these action flow through over the coming quarters. 12:05 12 minutes, 5 seconds Profit after tax for Q3 FY26 stood at rupees 139.43 million registering 9 12:14 12 minutes, 14 seconds registering a 9.2% 2% year increase despite high depreciation following fleet addition made to support the growth. 12:24 12 minutes, 24 seconds Turning to 9month performance, revenue from operation for 9 month FYI26 stood at 6013.98 12:32 12 minutes, 32 seconds million up by 26.15 yearon year reflecting sustained momentum across 12:39 12 minutes, 39 seconds both business segment and continue expansion of our operational footprint. 12:49 12 minutes, 49 seconds AIA for 9 month period was 697.76 million a 5.85 yearon-year increase with 12:56 12 minutes, 56 seconds AIA margin of 11.60% as compared to 13.83 last year. The margin movement 13:03 13 minutes, 3 seconds over period reflect higher manpower deployment fleet expansion and certain non-recurring provisional provisions incurred. 13:12 13 minutes, 12 seconds Profit after tax for 9 months distribute at 418.40 40 million broadly stable compared to previous year. 13:20 13 minutes, 20 seconds Overall, I am encouraged by strength or our growth and resilience of our operating model and the discipline with 13:29 13 minutes, 29 seconds which we are investing for scale. Our balance sheet remains healthy, demand visibility is strong and as operating 13:37 13 minutes, 37 seconds leverage improve, I'm confident in our ability to deliver sustainable growth with improve improving profitability. 13:45 13 minutes, 45 seconds Before that I will now open the floor for questions. Thank you very much. 13:52 13 minutes, 52 seconds Thank you very much. We will now begin the question and answer session. 13:57 13 minutes, 57 seconds Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you 14:04 14 minutes, 4 seconds may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. 14:16 14 minutes, 16 seconds The first question is from the line of Janam Sha from Aquarius Securities. Please go ahead. 14:23 14 minutes, 23 seconds Yeah, thanks for the opportunity. Uh, congratulations sir for the strong topline growth. My first question is related to the top line for the fourth 14:30 14 minutes, 30 seconds quarter as we have guided for around 17 to 20% kind of a growth for the full year. We are already at 26% kind of a 14:37 14 minutes, 37 seconds growth in the 9 months. How has been the momentum in the January month and overall forecast how we are expecting? 14:45 14 minutes, 45 seconds Um well uh thank you for the question you know and um I I I guess uh it's been 14:53 14 minutes, 53 seconds going better than what we expected uh so far and we hope for the same trends to 15:00 15 minutes continue uh but our over the long term our guidance remains uh uh between the 15:07 15 minutes, 7 seconds you know 15 to 20% uh uh growth um uh at the same time we hope uh that we 15:15 15 minutes, 15 seconds are able to exceed uh these uh our own targets. 15:21 15 minutes, 21 seconds Got it. Got it. And if you can just give me the number in terms of how is how has been the contribution of the CCR and ETA segment for this particular quarter. 15:31 15 minutes, 31 seconds So if you look at so look at CCR in this quarter, CCR grew by almost 30% and ETSs grew by almost 24% 15:40 15 minutes, 40 seconds uh in this quarter. uh and uh if you look at the total revenues uh CCR's revenue would stand at around 43% while PTS would be around 57% of the total. 15:53 15 minutes, 53 seconds Got it. So now coming to the margin part. So basically margin of course for last two quarters there has been some provisioning which has impacted our 16:00 16 minutes margin but how about this particular quarter like what could be the reason which has impacted our gross margins and not the only the beta margin because our 16:08 16 minutes, 8 seconds gross margins tend to be in the 27 28% range now it is eventually reduced to 26 and 27% range any specific one-offs or 16:16 16 minutes, 16 seconds anything that you can call out policy uh no there's not too many one-off it's 16:24 16 minutes, 24 seconds just some uh provision have been taken on account of the new labor code uh uh of uh uh of maybe around 75 to 80 lakhs. 16:33 16 minutes, 33 seconds Um sorry you understand labor only 15. 16:37 16 minutes, 37 seconds Okay. Okay. Okay. Sorry. Around 15 lakhs. So there are no no very basically there are no uh very large uh one-offs that have happened in this. 16:50 16 minutes, 50 seconds Okay. So, so uh of course we were guiding the margin range earlier between 13 to 15% and you you already said that margin might remain moderated in the 16:59 16 minutes, 59 seconds near term. Any specific range that you would like to call out or uh this is the new normal that we can take 404 at least for two three quarters. 17:08 17 minutes, 8 seconds So typically in the third quarter even if you look at the previous quarters the margins are have been a little uh breast 17:15 17 minutes, 15 seconds because also you know our top line um got affected because of uh large number 17:21 17 minutes, 21 seconds of public holidays the grap in uh north India which carried on. So but there are 17:28 17 minutes, 28 seconds no there is no um and we also onboarded a lot of new enterprise clients and and what happens with these enterprise 17:36 17 minutes, 36 seconds clients is initially in the during the scale up and the ramp up the costs are typically much higher and it takes two 17:42 17 minutes, 42 seconds or three quarters for the um you know the the margins to normalize. 17:51 17 minutes, 51 seconds Got it. Got it. And so what would be the tax number for the 9 months FI 26? 17:57 17 minutes, 57 seconds Around 26. Okay. So it's uh around 26 crores sir as of now. 18:04 18 minutes, 4 seconds Okay. And what would be the target for full year and for the 27? 18:08 18 minutes, 8 seconds No it should be uh for 20 uh 25 26 it will be the full month will be around 32 crores not more than around 32. 18:19 18 minutes, 19 seconds Got it. Got it. If you see s our overall fleet size even the top line and everything things have changed drastically over last two three years. 18:26 18 minutes, 26 seconds The only thing which has not changed is our uh absolute abita and the bottom line. So just wanted to check uh from your part that this all investments that 18:35 18 minutes, 35 seconds we are doing uh maybe let's say the price has not been that great over a bit of time. Is it the competitive intensity 18:42 18 minutes, 42 seconds one of the core reason for the let's say diluting of the margin or uh it is just more on the investment task that we are 18:48 18 minutes, 48 seconds doing for the future revenues that is there sir 18:57 18 minutes, 57 seconds the competitor intensity has always been there um but our main focus right now is on 19:06 19 minutes, 6 seconds garnering more market share and When we doing that, it takes a while for the margins to actually stabilize 19:15 19 minutes, 15 seconds and and that uh aggression in government market share is also being reflected in 19:21 19 minutes, 21 seconds the above u expected expectation growth in the top lines. 19:29 19 minutes, 29 seconds Got it. Got it. Yeah. Hello. That's it. My I'm joined again. Thank you so much. Thank you sir. 19:36 19 minutes, 36 seconds Thank you. The next question is from the line of Synthil Kumar from Joinre Capital Services Limited. Please go ahead. 19:45 19 minutes, 45 seconds Uh thank you for the opportunity. Am I audible? Yes. Yes. 19:50 19 minutes, 50 seconds Yeah. Uh I have two questions. First one uh could you please quantify the provision related to the labor code? 19:59 19 minutes, 59 seconds Uh so uh for uh till this 9 month we have taken uh the uh the provision of 15 lakh rupees only uh till now 15 lakh 20:08 20 minutes, 8 seconds rupees okay for Q3 uh okay so will this provision 20:15 20 minutes, 15 seconds yeah will this provision continue in the coming quarters as we increase in the number of old fleets number of employees 20:22 20 minutes, 22 seconds number of no the continuity is just like a we um uh will take the actual valuation. So 20:30 20 minutes, 30 seconds that uh routine incremental as per the uh joining period increase that will only come but not any specific or any uh uh exception numbers will come after. 20:43 20 minutes, 43 seconds Oh okay okay. See in this quarter now the employee cost is increased from uh 15.84 crores to 22.87 crores which is about a 44%age. 20:55 20 minutes, 55 seconds uh but we have only given a provision of 15 lakhs. Could you justify what is the reason for it that surge in employee cost? 21:05 21 minutes, 5 seconds No no see employee employee cost which period you are comparing that last 9 month 25 and 9 month 9 month 26 right? 21:16 21 minutes, 16 seconds No I'm talking about Q3 FI26 against the Q3 this quarter. 21:21 21 minutes, 21 seconds So these labor law which you are talking about the the outsource offers which we uh have for our own vehicles as far as 21:30 21 minutes, 30 seconds the our own payroll employee are concerned we are adequately providing those graduate lean inquest liability 21:38 21 minutes, 38 seconds and as a routine and if you look at our uh uh the costs increase in the HR cost it's reflected 21:45 21 minutes, 45 seconds in the fact that we have 258 odd new more people u on our roles. in terms of executives and also there's uh the 21:54 21 minutes, 54 seconds yearly increment that had happened. So if you look at the last three quarters the uh the uh the HR costs have been stable across every quarter. 22:07 22 minutes, 7 seconds Okay. Okay. Okay. And secondly uh the could you please clarify the reason 22:13 22 minutes, 13 seconds for this 29% surge in depreciation during this quarter depreciation. Sorry, the voice is not clear. Your voice is not clear. 22:22 22 minutes, 22 seconds Uh just can you clarify the reason for the 29%age increase in depreciation this quarter 7.38 against the 5.71 course. 22:31 22 minutes, 31 seconds That's because we have added uh around 250 more cars in the first nine months 22:38 22 minutes, 38 seconds which are both for fleet increase and for replacement of old cars. Okay. 22:46 22 minutes, 46 seconds Okay. That's it from me. Thank you sir. Thank you. 22:51 22 minutes, 51 seconds Thank you. The next question is from the line of Jigar Jani from Noama PCG research. Please go ahead. 22:59 22 minutes, 59 seconds Yeah. Hi. Thanks for taking my question and uh great set of numbers on the growth side. Uh my question is more on 23:06 23 minutes, 6 seconds the margin. Uh so if you look at the mix uh it has changed more in favor of CCR 23:14 23 minutes, 14 seconds uh this quarter and we have seen that movement over the last three quarters playing out. Uh but if I look and PCR 23:21 23 minutes, 21 seconds generally is a higher margin business from what I understand uh overall in terms of rates. So what kind of uh if 23:29 23 minutes, 29 seconds you could point out on absolute terms uh what kind of investments have gone into uh acquiring this new clients that you 23:37 23 minutes, 37 seconds are mentioning in the quarter because then we'll be able to get a sense of what we should look at as an adjusted uh 23:44 23 minutes, 44 seconds ITA margin if normal course of business would have been um and also if sorry just 23:52 23 minutes, 52 seconds in one more yeah u and if you could guide I TS participant asked for uh margin guidance also. You said next 24:01 24 minutes, 1 second couple of quarters probably uh margin will remain subdued but in the uh in the PPT in your commentary you have 24:09 24 minutes, 9 seconds mentioned that you are taking some price high and uh some uh vendor consolidation measures also which might also help in 24:18 24 minutes, 18 seconds terms of uh improving margin. So how does both of these play out? if you could just give us some kind of guidance 24:25 24 minutes, 25 seconds both for fourth quarter as well as next year that would be helpful. Thanks. 24:30 24 minutes, 30 seconds Yeah, sure. So the increase in the uh the top line of the business uh 24:38 24 minutes, 38 seconds especially with the new clients that have been added on or certain accounts that get renewed. It comes with uh in 24:45 24 minutes, 45 seconds the short term uh margin pressure wherein it takes because our main focus at that point in time is to ramp up our 24:55 24 minutes, 55 seconds supply and ensure u that a continuity uh of service and as also the growth of the wallet share of the client. 25:06 25 minutes, 6 seconds It takes a few months for all of that to stabilize and for us to you know um make 25:15 25 minutes, 15 seconds that result in an increase in the margins of what we are paying from basis of what we are paying the vendors. 25:25 25 minutes, 25 seconds So if you look at it like you know there's a 30% increase in in in CCR this quarter. There was a 40% plus increase 25:32 25 minutes, 32 seconds in CCR the last quarter. So the way the the revenues have been going up, we also 25:40 25 minutes, 40 seconds have to make the uh uh uh uh rationalize vendors and there's always a lag between 25:48 25 minutes, 48 seconds the revenues going on and rationalizing uh our vendor payments. So that's always been the case historically also. 25:57 25 minutes, 57 seconds Uh I understood that but from what I remember with our conversations in the past uh we usually operate at 60% kind 26:07 26 minutes, 7 seconds of utilization on our feet. Uh so we actually have significant capacity that is free to uh cater to any ramp up in 26:16 26 minutes, 16 seconds demand uh per se. So just to understand uh is it that you are incentivizing vendors to give supply to you and which 26:25 26 minutes, 25 seconds is why uh the vendor payments are higher and the gross margins are lower. Uh and I just wanted to figure out what kind of 26:33 26 minutes, 33 seconds impact this would be maybe 50 bips 100 bips a ballpark figure would help because this would help us model uh what 26:40 26 minutes, 40 seconds kind of improvement can we expect over the next uh couple of quarters or next year. 26:47 26 minutes, 47 seconds So uh the team is working on that same jiggle and it takes a few months for the 26:53 26 minutes, 53 seconds margins actually to stabilize right. Um it of course there is there is competitive pressures also um which are 27:03 27 minutes, 3 seconds there in the market currently. If you look at the fleet utilization yes it may be around 60%. But the rest of the 40% 27:10 27 minutes, 10 seconds which we're currently using for as a as a uh you know as fringe supply or as a 27:17 27 minutes, 17 seconds supply to be used during peak when we aggregate that as a permanent supply within the system it takes a little time 27:26 27 minutes, 26 seconds for the same supply to stabilize in the system and that time taken also after 27:34 27 minutes, 34 seconds that is done we start rationalizing the uh the margins with our vendors. 27:41 27 minutes, 41 seconds Understood. And uh on the growth side uh broadly um you're guiding for 15 to 20% 27:49 27 minutes, 49 seconds as a structural model. Uh but given that you are adding clients and the growth has been very strong and wallet share 27:56 27 minutes, 56 seconds also will go up. Uh would it be fair to assume that it will be near the upper end of the band sometime in FI27? I know 28:05 28 minutes, 5 seconds for me from a medium-term it will normalize to mid-range or lower end but at least for the near term can we expect this momentum to sustain. 28:15 28 minutes, 15 seconds I think we have a pretty good funnel and a pipeline you know uh and of course all this will depend on how well we able the 28:24 28 minutes, 24 seconds sales organization is able to uh close out uh the contracts and get the new business in but u between 15 to 20% we are fairly confident. 28:36 28 minutes, 36 seconds Understood. And uh just lastly on uh data keeping wise how much would be the 28:42 28 minutes, 42 seconds cash and investments on our books now 150. 28:50 28 minutes, 50 seconds So uh currently uh we have uh uh uh 120 k plus in as a casc. 28:59 28 minutes, 59 seconds Okay. And uh sir lastly uh just uh to confir uh there is a AI summit that is happening in Delhi. are being associated with that event in any shape or form. 29:12 29 minutes, 12 seconds Please come again. Actually, your voice is not clear. 29:15 29 minutes, 15 seconds Yeah, I was asking that there is a AI summit that is likely to happen in Delhi. It's a big event. Are we a vendor for that event? 29:24 29 minutes, 24 seconds AI AI no but we have vendors of we have vendors of many many such events you 29:32 29 minutes, 32 seconds know and um yeah so u all I can say is business is good yeah okay okay thank you so much for your 29:41 29 minutes, 41 seconds answer and best thank you thank you the next question is from the line of Dshit Dhi from Whiteststone 29:49 29 minutes, 49 seconds Financial Advisors please go ahead uh yeah thanks for the opportunity So first question is uh on the margins 29:57 29 minutes, 57 seconds only. So uh obviously we were crying at 13 to 14%, but uh we have fallen to 30:04 30 minutes, 4 seconds 11.3% this quarter. So uh one of the reason I noticed is uh because of the jump in the uh you know the employee 30:12 30 minutes, 12 seconds cost so for 9 months the employee cost has gone up by 36%. 30:17 30 minutes, 17 seconds So from last three quarters the run rate is maintained at around 22 21 K. So going forward in the next year uh 30:25 30 minutes, 25 seconds considering whatever hiring you are doing uh will the growth in the employee cost will be higher than the revenue growth or it will be lower than the revenue growth. 30:36 30 minutes, 36 seconds I think it should be in line with the revenue growth and to answer your first question you know uh statement of the margin if you look at the F9 numbers 30:45 30 minutes, 45 seconds excluding the non-recurring provisions that we have taken place you'll see that the underlying AETA trend remains stable also 30:53 30 minutes, 53 seconds okay okay but uh this quarter it is almost like you know because uh if we see Q3 to Q2 also uh even if I remove 31:03 31 minutes, 3 seconds the 5 cr which we have taken the provision In the Q2 the beta is almost absolute terms is flat. Uh so I think yes. 31:15 31 minutes, 15 seconds Yes. So the total non-recruitment would be around 8 crores because taken in Q1 also some part of that was taken in Q1 and some part was taken in Q2. 31:25 31 minutes, 25 seconds No. Uh what I'm saying is that in Q2 we have taken the 5 K provision right. Uh in Q3 that provision is no more there. 31:35 31 minutes, 35 seconds uh despite that our EIDA is in absolute term is flat for this quarter. Yes. Yes. Yes. 31:43 31 minutes, 43 seconds Yeah. So uh one of the reason is the gross margin pressure. So if you can elaborate how the competition 31:51 31 minutes, 51 seconds is there and uh is there a possibility to improve the gross margin in near term? You see competition is there but 31:59 31 minutes, 59 seconds that is also the opportunity because the competition is so fragmented and that the opportunity is what we are um you 32:06 32 minutes, 6 seconds know working hard to encach on uh to uh consolidate this fragmented business 32:14 32 minutes, 14 seconds into a professional and um uh uh organized uh uh market wherein we also 32:22 32 minutes, 22 seconds feel that our clients are now much more open to that uh seeing our success at delivering this um in so many clients 32:31 32 minutes, 31 seconds um uh in in the recent past and which is where we're concentrating to make sure that we are able to you know um increase our market share uh at the fastest. 32:45 32 minutes, 45 seconds Okay. And uh one more question was on the ETS uh business side. Uh so recently Uber has announced the entry into the 32:54 32 minutes, 54 seconds ETS market. Uh so what are your thoughts in terms of competition because uh these guys have the uh you know big pockets 33:02 33 minutes, 2 seconds and a habit of uh you know making losses in the initial years to scale up the business. So how do you see this their entry into the ETA business? 33:13 33 minutes, 13 seconds So we welcome all um you know uh competition uh especially in the organized segment because the the 33:23 33 minutes, 23 seconds unorganized market is so huge that uh uh the more number of players who are you 33:30 33 minutes, 30 seconds know um uh outing their credibility to uh uh convert the unorganized to 33:38 33 minutes, 38 seconds organized only helps the organized part of the market because more clients would be more open to dealing with organized players instead of the unorganized 33:46 33 minutes, 46 seconds players. So um uh we wish all our competitors well and uh uh and 33:54 33 minutes, 54 seconds definitely um uh a growing uh unorganized to organized market would invite um more number of players and there should be why not. 34:04 34 minutes, 4 seconds But do you foresee any uh pricing pressure because of this uh because uh in terms of gross margin 34:13 34 minutes, 13 seconds prices move in a band only prices move in a band uh within the industry. I am not uh I will not be able to comment on 34:21 34 minutes, 21 seconds what their strategy will be uh into this but uh typically what we've seen is uh prices are already very competitive and 34:29 34 minutes, 29 seconds they move in a certain band in especially in the employee transportation u uh uh business. So we don't u we don't foresee uh any kind of 34:39 34 minutes, 39 seconds u um you know u uh uh uh bleeding kind of competition coming in over here 34:47 34 minutes, 47 seconds because for for a client more important than just the price is also the credibility the ability to deliver 34:55 34 minutes, 55 seconds operationally to ability to deliver uh predictably with the same standard of 35:01 35 minutes, 1 second service you know 365 days a Um so they have a different u uh expectation than a typical B2C market. 35:14 35 minutes, 14 seconds Okay. And last thing uh so uh this quarter obviously there was drop in the margin uh to almost 11 12%. Uh for FI27 35:23 35 minutes, 23 seconds do you feel that we can come back to that 13% or you feel that it may take longer? 35:32 35 minutes, 32 seconds No, I think in the long term uh mid to long term our guidance remains the same of between 13 to 15%. 35:39 35 minutes, 39 seconds Um and uh we should be able to recover our margins uh over the next few quarters. 35:47 35 minutes, 47 seconds Okay. So, so you don't expect further reduction in I think uh in the margins gradually it should improve only. 35:56 35 minutes, 56 seconds No. So I think um there's an inflection point you know wherein all the um efficiencies of scale of the operating leverages all that starts to pay. 36:10 36 minutes, 10 seconds Okay. Okay. Sure. 36:17 36 minutes, 17 seconds Thank you. The next question is from the line of Harik from HSS AMC. Please go ahead. 36:26 36 minutes, 26 seconds Hello, thank you for the opportunity. 36:28 36 minutes, 28 seconds Uh, I just had a few couple of questions. First of all, I'm just a bit new to the coverage of the company and I just wanted to understand the margin 36:36 36 minutes, 36 seconds profile difference between the shopper driven side of things and the ETF. 36:43 36 minutes, 43 seconds Yeah. So, typically um, uh, ETS has a lesser margin profile as compared to driven. 36:51 36 minutes, 51 seconds But what we are able to finally present is is a kind of a blended margin which you see on our financials. 36:57 36 minutes, 57 seconds Right. And Rajes G uh you had mentioned that uh EOS mobility has exposure to 30 plus countries. So I just wanted to 37:05 37 minutes, 5 seconds understand is there any currency exposure to it as well or the contracts are hedged in the forex domain? 37:13 37 minutes, 13 seconds Uh it's very very uh minimal. There's um um because our our business uh that 37:21 37 minutes, 21 seconds happens internationally is very less uh so there is uh no uh currency risk 37:28 37 minutes, 28 seconds per se. Typically we also get paid uh in advance uh uh for such uh bookings which we execute internationally. 37:39 37 minutes, 39 seconds All right. Uh and just one last bit I just wanted to understand um ECO's 37:46 37 minutes, 46 seconds approach towards the current GCC boom happening in India. Are we there bound to capture that side of uh industry as well? 37:54 37 minutes, 54 seconds Yes, a very large number of new clients that are getting acquired are GCC clients and definitely uh this is u an 38:04 38 minutes, 4 seconds inherent need in every GCC that scales up you know let's say over 500 odd employees that they need a secure safe 38:12 38 minutes, 12 seconds um and compliant transportation service to to ensure that 365 days a year the employees uh can 38:21 38 minutes, 21 seconds uh have a good experience uh of commute from home to office and back to home. 38:27 38 minutes, 27 seconds Okay, fair enough. And uh sorry, just two more questions. So one was uh eos 38:34 38 minutes, 34 seconds banking on uh changing the industry from like a fragmented landscape to a more organized sector. So I just wanted to 38:41 38 minutes, 41 seconds understand before we onboard a client, do we have a screening criteria that an entity should have x number of employees or is it just open to all? 38:54 38 minutes, 54 seconds No, of course. 38:56 38 minutes, 56 seconds um our clients if you look at the quality of our revenues um I think they're the best um then in 39:05 39 minutes, 5 seconds any industry that you can find most of the clients are either multinationals or they are large or mid size Indian 39:13 39 minutes, 13 seconds corporates or uh you know or wealthy individuals as part of the B2C because 39:21 39 minutes, 21 seconds we offer only a premium service to them so That's and that also then gets reflected in our you know uh bad debts 39:29 39 minutes, 29 seconds which is negligible and our uh DSO which is uh very very you know um uh stable 39:36 39 minutes, 36 seconds over the past so many years right thank you and Raji one last question uh for uh since we are sitting 39:44 39 minutes, 44 seconds on healthy cash in the bank are we looking at any inorganic growth opportunities in terms of M&A yes we are constantly looking at the 39:53 39 minutes, 53 seconds opportunities unfortunately Ely we have not been able to put our finger on something right now till now. 39:57 39 minutes, 57 seconds Okay. All right. Thank you for answering my question and all the best for the future sir. Thank you. 40:04 40 minutes, 4 seconds Thank you. The next question is from the line of Siddhi from Aditya Virani. Please go ahead. 40:11 40 minutes, 11 seconds Uh hi am I audible? Yes please. 40:16 40 minutes, 16 seconds Yeah. So for my first question is what specific operational capabilities does EARS have currently that a wellunded 40:25 40 minutes, 25 seconds tech platform like roadmatic or movement sync cannot replicate in two to three years? 40:32 40 minutes, 32 seconds I'm sorry what uh can I just repeat the first part of the question? 40:37 40 minutes, 37 seconds Yeah, I want to ask that what specific operational capabilities uh does ECOS have currently that a wellunded tech 40:45 40 minutes, 45 seconds platform like root matic or movement sync cannot replicate in two to three years. 40:54 40 minutes, 54 seconds So um operational capabilities are made up of you know um an ingrained 41:02 41 minutes, 2 seconds knowledge and culture developed over the years. It has to translate into service 41:09 41 minutes, 9 seconds delivery at the last mile every rental out of the millions of rentals that we do. It comes from you know the 41:18 41 minutes, 18 seconds capability of our people. It comes from the rigor and resilience of our processes um and and our deep knowledge uh of the 41:27 41 minutes, 27 seconds business um uh as a whole and competition has been there both tech and non techch has been 41:35 41 minutes, 35 seconds there for many many years and in spite of that um eco is the leader and I think that uh says it all. 41:43 41 minutes, 43 seconds Uh yeah surely and uh under what situation do you prefer owning vehicle instead of outsourcing like over the 41:52 41 minutes, 52 seconds long term do you see sorry can you repeat your voice is actually breaking can you just repeat the question again yeah yeah under what situation do you 42:00 42 minutes prefer owning vehicles instead of outsourcing and over the long term do you see own fleet staying under 10% of 42:07 42 minutes, 7 seconds total or rising material so yeah we Still our philosophy and 42:15 42 minutes, 15 seconds model is asset light and we intend to keep it that way only and uh there are a lot of strategic considerations that go into uh before we decide where we have to selectively put in our own fleet. 42:28 42 minutes, 28 seconds Yeah. Yeah. Fair. And when do you say uh large corporate are consolidating vendors? What what are the key decision 42:35 42 minutes, 35 seconds drivers for them? Price compliance tech integration or execution reliability? 42:42 42 minutes, 42 seconds So I guess the value that the um that the partner brings in uh is a combination of a lot of factors and u uh 42:51 42 minutes, 51 seconds the uh you mentioned tech and you mentioned tech in another question also. 42:56 42 minutes, 56 seconds Tech is an enabler right and tech um uh does not mean that you would be able to 43:04 43 minutes, 4 seconds deliver operation because and tech is is uh is also an tool of audit for these clients you know. So many clients also 43:12 43 minutes, 12 seconds consider that the tech and the operations should not be with one company because it leads to a conflict of interest. Right? So typically all our 43:21 43 minutes, 21 seconds client most of our clients have uh tech as um we we study the client and then we recommend which uh you know this 43:30 43 minutes, 30 seconds client's requirements which is the best tech that suits that particular client as per their needs. 43:36 43 minutes, 36 seconds Yeah. Okay. Okay. from my Thank you ladies and gentlemen. In order 43:44 43 minutes, 44 seconds to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to two per 43:52 43 minutes, 52 seconds participant. The next question is from the line of Swcher Jane from ANS Wealth. Please go ahead. 44:00 44 minutes Uh hi sir, thanks for giving this opportunity. Uh sir, I've been hearing uh you know uh uh previous participants 44:08 44 minutes, 8 seconds questions on margins and I've also been hearing your answer on margin. So I I still want some clarification on the 44:16 44 minutes, 16 seconds margin because you know I've heard you saying that you know margins will remain under pressure but I've also heard you 44:24 44 minutes, 24 seconds saying guiding that margins will come back to 13 to 15% and you know there is an inflection point but all I wanted to 44:32 44 minutes, 32 seconds understand was sir you know if our strategy is to acquire uh you know bigger clients and as you have stated 44:40 44 minutes, 40 seconds that you know whenever you acquire bigger clients uh there is a hit that you have to take on the cost on the 44:46 44 minutes, 46 seconds margins and then there is a you know uh uh vendor rationalization and you know you have to have to bear certain cost 44:54 44 minutes, 54 seconds which impacts your gross margins or your EITA margins. So if if that is what we are going to do even going ahead uh I 45:02 45 minutes, 2 seconds really want to understand you know how how do we expect these margins to go back and uh you know in terms of 45:10 45 minutes, 10 seconds inflection point if you know what is our inflection point either in terms of revenue in terms of uh you know uh uh 45:19 45 minutes, 19 seconds number of big clients that we want to achieve. So you know what do we as management think that you know our company is at that inflection point. So 45:28 45 minutes, 28 seconds that is my first question and uh I once you answer this I'll ask my second question sir. 45:34 45 minutes, 34 seconds Yeah. So we feel as a company that inflection point uh wherein the true uh operating leverages kick in would be 45:43 45 minutes, 43 seconds anywhere between a,000 to 1200 cr uh uh topline revenue and there would be it would also translate into a certain 45:51 45 minutes, 51 seconds number of trips and revenues at the city level. Um uh as per whatever you know uh 45:57 45 minutes, 57 seconds modeling that we have done uh also um yes uh it's right when we take on new 46:04 46 minutes, 4 seconds clients it does uh result in a higher cost you know for that uh client for a few months till the uh till the operation stabilizes. 46:16 46 minutes, 16 seconds So this phenomena will repeat every quarter right so then the margins will be impacted every quarter. But we are 46:23 46 minutes, 23 seconds also seeing uh a higher premiumization in our CCR segment which should uh you know uh offset the the blend margin and 46:33 46 minutes, 33 seconds uh end of the day if you want to you know what we see uh and um with the over 46:39 46 minutes, 39 seconds the last few quarters we've seen the growth u the unbridled growth of the GCC's in India and even the growth 46:48 46 minutes, 48 seconds within our existing clients we feel it is u right uh time right now to um go all out and capture market share. 46:59 46 minutes, 59 seconds Okay. 47:00 47 minutes Because the you see the lifetime value of these contracts for us is very high and uh definitely the margins can be rationalized over time. 47:09 47 minutes, 9 seconds Okay. And so my second question was sir uh with regards to our you know write offs that we had in the past just wanted 47:17 47 minutes, 17 seconds to understand uh uh is there any more write off that we are expecting or uh you know whatever we had to done we had 47:25 47 minutes, 25 seconds to do uh we are we you know we done with the write offs. Yeah that's done in the second quarter. We don't expect any write offs. 47:32 47 minutes, 32 seconds Okay. Okay. Thank you sir. Really appreciate this. Thanks. 47:38 47 minutes, 38 seconds Thank you. The next question is from the line of Hush from Envy Alpha. Please go ahead. 47:46 47 minutes, 46 seconds Hi sir, thank you for the opportunity. 47:51 47 minutes, 51 seconds All of our questions are answered by the previous uh participants. Thank you. 48:00 48 minutes Thank you. The next question is from the line of Muhammad Susan Lakraala from Dero Capsu. Please go ahead. 48:09 48 minutes, 9 seconds Hi sir this is Dasha. Yeah I had uh one simple question for a business. So sir when we see our service offerings as on 48:17 48 minutes, 17 seconds date we we do the catering to GCC's IT manufacturing everyone in terms of industry can you can you help uh help me 48:25 48 minutes, 25 seconds to understand what is the kind of a you break up from all these industries? 48:32 48 minutes, 32 seconds Uh I didn't have I don't have that right now. Sorry. No. Uh why question sir? Why ask this question? 48:42 48 minutes, 42 seconds Maybe because the acquisition cost for all these new clients was uh quite high and which is being reflected into the GP margins also in the last quarter 48:50 48 minutes, 50 seconds numbers. So I just wanted to understand that when we talk about the higher acquisition cost. So if if these clients are mainly GPC sales then this will be 48:59 48 minutes, 59 seconds surely adding to our revenue for next six seven years. So if that yeah so if that proportion in terms of 49:07 49 minutes, 7 seconds sales is higher then this gives us a additional advantage in terms of visibility of revenue. 49:13 49 minutes, 13 seconds So all our contracts are long-term contracts only. 49:16 49 minutes, 16 seconds Yeah that's for sure. And as we have seen you know and proven the stick stickiness of our client even beyond the 49:24 49 minutes, 24 seconds initial contract period of 3 to four years. Yeah. 49:27 49 minutes, 27 seconds Wherein most of the the the clients find our services satisfactory enough to keep renewing our contracts. So it stretches much more than that. 49:38 49 minutes, 38 seconds Okay. Okay. And so second thing uh is like when we see a operation operationally uh cash flow of a company 49:46 49 minutes, 46 seconds our profits operational cash flows are always higher in terms of numbers compared to our net profit what we post. 49:52 49 minutes, 52 seconds So my question over here was like on the depreciation. So like this year you have already given the number in terms of capex also that you have spent around 26 50:00 50 minutes cr kex for 9 months and another 4 cr is expected in the last quarter of this financial year. So you have already bought around 250 new cars over here. 50:09 50 minutes, 9 seconds But what is the depreciation cycle which we take over here and and how how do we see a life of a vehicle which is which is there with us. 50:18 50 minutes, 18 seconds So we typically look at a five year uh life cycle for these cars. Uh at the end of five years we look at the cars uh you 50:26 50 minutes, 26 seconds know condition once again. If they are fit then we can drive them for another one two or three years. If not then they're sold off. 50:35 50 minutes, 35 seconds Okay. So, so why I ask you this question is like if a the depreciation is a is a real depreciation in our business other 50:42 50 minutes, 42 seconds businesses this is considered kind of a free cash flow for the company where you add the depreciation to the P and then the people see that this is a cash flow 50:49 50 minutes, 49 seconds just coming into the company. So in our business the life of the vehicle is very important to get understood by the investors who have a visibility where 50:58 50 minutes, 58 seconds your assets are uh projecting your revenue for at least 6 to 7 years. 51:06 51 minutes, 6 seconds I'm sorry I didn't get the last part of your question. What I'm saying in our business sir it is very important that at what pace our asset is getting 51:13 51 minutes, 13 seconds depreciated like our cars uh if if you have a vis yeah if you have a visibility like six seven years we are talking about so this capex cycle will be on the 51:22 51 minutes, 22 seconds consistent basis every year but at the same time the the there will be never a big capex which will be coming at any part of the business cycle 51:31 51 minutes, 31 seconds no yeah correct correct yeah so that's what I wanted to understand anyway sir thank you thanks a lot sir Thank you so much. 51:39 51 minutes, 39 seconds Thank you. The next question is from the line of Vira Mitani from Jupiter Financial. Please go ahead. 51:47 51 minutes, 47 seconds Thank you for the opportunity sir. Am I am I audible? Yes sir. Yes. 51:54 51 minutes, 54 seconds Yeah sir. My first question is regarding your clarification. We talk about 15 to 20% growth. So that would be the same 52:02 52 minutes, 2 seconds the pat margin of 10 to 12% be maintained or be bit lower. Can you just repeat the first part of the question? 52:09 52 minutes, 9 seconds You said we grow at 15 to 20% range. So going forward the pat margin will be maintained in range of 10 to 12% which has been there traditionally or will it be going lower than that? 52:20 52 minutes, 20 seconds No. So uh uh a pat uh um guidance has always been between 8 and a half to 10 52:28 52 minutes, 28 seconds odd percent. Not 10 to 12%. And u uh in terms of AITA we are looking at uh 52:36 52 minutes, 36 seconds anywhere between 13 to 15%. Uh in in the mid to long term okay and can you give a bit more color 52:44 52 minutes, 44 seconds on GCC like how many customers do we have and what kind of growth rate do we expect there? I'm sorry repeat. 52:53 52 minutes, 53 seconds Can you give bit more color on GCC? There's some customers coming in. There's some background noise coming in. 52:59 52 minutes, 59 seconds Is it clear now? No. Can you just speak again? 53:08 53 minutes, 8 seconds Yeah, now it's clear. 53:10 53 minutes, 10 seconds No, maybe from somebody else's phone something's coming in. Anyway, V, there's some disturbance in your line. 53:18 53 minutes, 18 seconds Hold on. Uh, is it to you? 53:28 53 minutes, 28 seconds Yes. Uh okay can just go ahead I'll try here. 53:32 53 minutes, 32 seconds Yeah I just want more on GCC I mean how many customers we acquired and what do we see? 53:39 53 minutes, 39 seconds So last quarter we acquired around 39 new customers. Uh which brings the total customers acquired in first 9 months to around 160 odd customers. 53:49 53 minutes, 49 seconds uh the growth that we have uh um uh been able to deliver in the last uh first 9 months has been around 26 odd percent. 54:00 54 minutes uh as compared to the last uh F9. 54:04 54 minutes, 4 seconds I understand restrictive global capital center GCC talking about. So what do you know GCC's? I'm sorry. 54:12 54 minutes, 12 seconds How many customers do you have in GCC and what do we see in this significant? 54:16 54 minutes, 16 seconds How many customers do we have in GCC? I think we'll give that information to Priyanka and she can provide it to you post the call. I don't have any handy exactly with me right now. 54:27 54 minutes, 27 seconds Okay. And what road do we expect in this sector in this segment? So in GCC's 54:34 54 minutes, 34 seconds yes. So I uh we do not look at it that way that all the growth you know how much would come from GCC or we're 54:41 54 minutes, 41 seconds looking at our marketing and growth on a holistic basis wherein we have a certain profile of customers that we target and 54:48 54 minutes, 48 seconds aspire to acquire and we then uh uh strategize and execute as per that. 54:56 54 minutes, 56 seconds So typically yescs are more right now because of uh you know so many new GCS are opening up in India but beyond that 55:05 55 minutes, 5 seconds also there are you know other multinationals, manufacturing companies, consultancies, um large Indian companies, 55:13 55 minutes, 13 seconds R&D centers etc. So many are there which who we are constantly targeting and acquiring. 55:20 55 minutes, 20 seconds I said the international business we do how does it work? We tie up with some operator outside or 55:28 55 minutes, 28 seconds I'm sorry. Yeah, internationally we have uh tie-ups with our vendors uh overseas. Uh yes. 55:37 55 minutes, 37 seconds Okay. Thank you and all the best. Thank you. 55:40 55 minutes, 40 seconds Thank you. The next question is from the line of Simony Sang from Prospero Tree. 55:46 55 minutes, 46 seconds Please go ahead Simony. You can go ahead. 55:53 55 minutes, 53 seconds Hello. Am I audible? Hello. Yes. Yes. 55:59 55 minutes, 59 seconds Thanks. Thanks. Sir, I recently government has launched the Bat Taxi. 56:05 56 minutes, 5 seconds So, is there any threat to our business because of the Bhat taxi business? 56:12 56 minutes, 12 seconds No, no, no. That is a ride hailing and right hailing has been around for more than you know uh 13 14 years. We don't 56:20 56 minutes, 20 seconds uh see that as a as a threat. Our business model is different where we are a uh B2B mobility solutions provider to uh corporates andmemes across India. 56:32 56 minutes, 32 seconds Yes. So, so because of the different of business model, you don't think there will be any threat to the eco is it correct sir? 56:42 56 minutes, 42 seconds No, no, no. Beyond you know us of course there is similarity that we both uh give a car and a driver but uh beyond that 56:49 56 minutes, 49 seconds there is so much more that uh our customers demand uh which we are that's where our business has uh been modeled 56:58 56 minutes, 58 seconds on because they they are adopting the cooperative model and the profit will go to the uh driver or something like that 57:07 57 minutes, 7 seconds uh we have read in the press so more and more number will be car owners related 57:13 57 minutes, 13 seconds to their bar taxi is there because we we are thinking the we might have a lesser 57:19 57 minutes, 19 seconds number of the uh driver or the taxi attached to our business will it impact our business that's that's why I'm 57:27 57 minutes, 27 seconds repeating my question so we have been through various phases in which you know over the last 15 years wherein ride hailing companies also were 57:36 57 minutes, 36 seconds giving incentives and all that was happening but we have still managed to retain all our supply and in fact grown 57:43 57 minutes, 43 seconds even better than before. Uh what happens is when new ride healing services or new competent comes in or a new concept 57:50 57 minutes, 50 seconds comes in, it also helps in expanding the size of the market which uh in which at the end of the day benefits all the stakeholders in that market. 58:01 58 minutes, 1 second Yeah. And sir in quarter 1 and quarter two the company has making some provision for the doubtful depth around 58:07 58 minutes, 7 seconds 1.97 cr in the quarter 1 and 5.94 cr for the quarter two and in quarter three there maybe is there any provision in 58:16 58 minutes, 16 seconds the quarter three or there will be no provision there is no provision no no we we we don't have any more uh doubtful rates and that also we are 58:25 58 minutes, 25 seconds going to try and u uh get the money back. So, so that's okay. That's fine. 58:32 58 minutes, 32 seconds But, so why the PBT is lower than the quarter two in spite of the there is a no provision it's 5.94 cr it is around 6 58:42 58 minutes, 42 seconds cr rupees of the provision made in the quarter two. So naturally our profit might must have grown. 58:50 58 minutes, 50 seconds If you look at this quarter historically also even the last year also if you look at it it's always been a little more uh 58:56 58 minutes, 56 seconds subdued in terms of uh the margins and like I had explained on the call um uh 59:03 59 minutes, 3 seconds uh to another u uh question we there are uh uh the the uh there are certain costs 59:12 59 minutes, 12 seconds in terms of our uh vendor costs and uh the costs which went up go up in the quarter when we are especially when we are uh acquiring uh new large clients. 59:23 59 minutes, 23 seconds So the initial costs of ramping up and and servicing those clients are on the higher side which stabilize over a period of time. So we hope to see that stabilize over the next few quarters. 59:36 59 minutes, 36 seconds So that cost was the one time cost in the quarter three and it will be some more cost will be accounted in the quarter four also. 59:47 59 minutes, 47 seconds It depends on the on specifics of how we have to scale up and how fast we have to scale up and certain uh contracts. So 59:56 59 minutes, 56 seconds sometimes it may be there but it we don't feel that it will be a regular occurrence and we are making certain 1:00:03 1 hour, 3 seconds strategies around it how we can avoid that. 1:00:08 1 hour, 8 seconds Sir, last question. There is a for the 9 month there was a revenue growth in this quarter also there was a revenue growth on a bio basis but in profit term 1:00:16 1 hour, 16 seconds suppose we come back that the PBT is around 57 cr rupees in the last FY25 as well in the current year also the PBT 1:00:24 1 hour, 24 seconds level is 57 cr. The revenue has grown from the 476 cr to 601 cr rupees. So there is a naturally some operating 1:00:32 1 hour, 32 seconds leverage must be generated or some more margin even the at the same margin level the absolute number must have increased 1:00:39 1 hour, 39 seconds it's a 57 credit so what are the key reason for not growing in the now no growth in the previous year 1:00:48 1 hour, 48 seconds so uh if you look at the numbers if you exclude the non-recurring expenses or the provisions that we have taken you 1:00:57 1 hour, 57 seconds will find that aa is more uh of around the uh 13% range rather than the 11% range. 1:01:06 1 hour, 1 minute, 6 seconds But the I I'm talking about the PBT number because ultimately it is the the uh the shareholder will gain from the pet number and the PBT is 57 cr rupees. 1:01:16 1 hour, 1 minute, 16 seconds Our revenue increase around uh the say 22 to 23% in the first 9 month of the 1:01:23 1 hour, 1 minute, 23 seconds current year but profit number the PGD remains the same 57 crores rupees. So is there any 1:01:31 1 hour, 1 minute, 31 seconds can we exclude the 8 cr rupees of the provision which you have made in the quarter 10 and quarter two we add that it comes to the 64 cr rupees around 65 1:01:40 1 hour, 1 minute, 40 seconds cr rupees so in this quarter there is a no provision then also the profit has not grown so when we see the the profit 1:01:49 1 hour, 1 minute, 49 seconds growth along with the revenue growth although it's a because any increase in the revenue must result into the profit 1:01:54 1 hour, 1 minute, 54 seconds growth it is not happening to our M uh so as said this is by Raj said that 1:02:03 1 hour, 2 minutes, 3 seconds that there is some operating cost things uh which is little load on the higher side. If you talk about the 9 month 1:02:10 1 hour, 2 minutes, 10 seconds comparison for both the period 25 26 so our uh PBT was 11.7% 1:02:18 1 hour, 2 minutes, 18 seconds in FY25 and uh considering that uh one time impact of the bad debts it was 1:02:24 1 hour, 2 minutes, 24 seconds 9.32%. If we uh remove that impact so they be around the same label uh the PBT which we have in FI25 1:02:34 1 hour, 2 minutes, 34 seconds right and during this period also the employee cost like we added around more than 250 employee to increase the 1:02:43 1 hour, 2 minutes, 43 seconds strength and the visibility of the company to provide the better services. 1:02:47 1 hour, 2 minutes, 47 seconds So that is also the factor and going forward this employee cost will turn out into revenue and that overall margin should be the improved in that way. 1:02:59 1 hour, 2 minutes, 59 seconds So can we expect that the now onwards the end sorry to interrupt you sir sorry to interrupt you sir can you please rejoin the question question. 1:03:09 1 hour, 3 minutes, 9 seconds Thank you. The next question is from the line of Janim Sha from Aquarius securities. Please go ahead. 1:03:19 1 hour, 3 minutes, 19 seconds Yeah, thanks for the opportunity again. 1:03:21 1 hour, 3 minutes, 21 seconds Uh, so my question is related to the provision that we created over last two quarters. Uh, what the status over there like are we going to receive the money in the near term or it is going to take 1:03:29 1 hour, 3 minutes, 29 seconds time like what's the current stat and when we are expecting the money to uh come in our P&L eventually. 1:03:36 1 hour, 3 minutes, 36 seconds So we are uh taking the legal action for recovery of that money. It's okay. 1:03:43 1 hour, 3 minutes, 43 seconds So I we think that should take a year to 18 months uh for the process uh uh to be concluded. 1:03:53 1 hour, 3 minutes, 53 seconds Got it sir. And uh the client for which we would have provided for the provision. This is the client which is also contributing the revenue as of now 1:04:02 1 hour, 4 minutes, 2 seconds or it is all done and tested with that client. 1:04:06 1 hour, 4 minutes, 6 seconds Uh no. So it's a very highly credible client. is seems to be an internal process issue for them and we hope to 1:04:14 1 hour, 4 minutes, 14 seconds recover this money and it is an existing client. 1:04:18 1 hour, 4 minutes, 18 seconds So we are receiving the money from them for all other things. Yes, we are receiving the money. Got it. Sir, thank you so much. 1:04:27 1 hour, 4 minutes, 27 seconds Thank you ladies and gentlemen. You are requested to restrict your question to one per participant. The next question 1:04:34 1 hour, 4 minutes, 34 seconds is from the line of Vikna from Monach Networth Capital. Please go ahead. 1:04:40 1 hour, 4 minutes, 40 seconds Um good evening sir. Um congratulations on the good topline growth. Um I joined the call late. I just wanted to 1:04:48 1 hour, 4 minutes, 48 seconds understand uh what would be our mix between the CCR and the EPS division in terms of revenue. 1:04:56 1 hour, 4 minutes, 56 seconds Uh 43 and 57. 43 is CCR. 1:05:05 1 hour, 5 minutes, 5 seconds Thank you. 1:05:06 1 hour, 5 minutes, 6 seconds Yeah. Ladies and gentlemen, due to time constraint, that was the last question. 1:05:11 1 hour, 5 minutes, 11 seconds I would now like to hand the conference over to Mr. Rajesh Lumba for closing comments. 1:05:20 1 hour, 5 minutes, 20 seconds Over to you, sir. 1:05:22 1 hour, 5 minutes, 22 seconds Thank you. Um thank you for uh to all our investors, analysts, partners and all stakeholders for their continued trust and support. Um it matters a lot. 1:05:35 1 hour, 5 minutes, 35 seconds Your confidence in EOS motivates us to remain disciplined in execution and committed to creating a long-term sustainable value for the company. 1:05:45 1 hour, 5 minutes, 45 seconds Thank you very much. 1:05:47 1 hour, 5 minutes, 47 seconds Thank you on behalf of Echos Mobility and Hospitality Limited. That concludes this conference. Thank you for joining us and you may now disconnect.