Esconet Technologies Ltd — Q4 FY26

Esconet Technologies Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=-OlJtQmSPgk Published: 1 day ago

0:00 Good afternoon everyone. On behalf of Espanite Technologies, I would like to welcome all investors, analysts, shareholders, and stakeholders joining 0:08 8 seconds us today for our FY2526 results presentation and business outlook discussion. We appreciate your continued 0:17 17 seconds trust, confidence, and support as we continue our journey to building a technology solutions company focused on India's rapidly evolving digital infrastructure ecosystem. 0:29 29 seconds FI 2526 has been an important year for of transformation of SM. While we 0:36 36 seconds continue to deliver strong revenue growth, we also may we have also made significant strategic investments to 0:44 44 seconds strengthen our long-term capabilities across four critical technology layers. 0:51 51 seconds Compute infrastructure, cloud, cyber security and system integration. 0:57 57 seconds Our strategic vision which we refer to as the sovereign stack represents our ambition to create an integrated India 1:06 1 minute, 6 seconds focused technology platform capable of delivering complete digital infrastructure solutions to enterprise government institutions and global customers. 1:16 1 minute, 16 seconds Today we will walk you through our financial performance strategic initiatives, business developments and priorities of FI2627. 1:26 1 minute, 26 seconds At Escort, we have evolved. 1:31 1 minute, 31 seconds Can we have the Atut we have evolved beyond during uh 1:39 1 minute, 39 seconds beyond being only a system integration company. Today we operate through a fully integrated technology ecosystem comprising four complimentary layers. 1:51 1 minute, 51 seconds First base hardware infrastructure through hexa data are indigenous computing infrastructure 1:58 1 minute, 58 seconds business focused on servers AI systems GPU workstations and high performance computing platforms. 2:05 2 minutes, 5 seconds Second is our sovereign cloud through zcloud. 2:09 2 minutes, 9 seconds Our cloud which is zcloud is our 100% subsidiary company. Our cloud platform focuses on infrastructure services, 2:16 2 minutes, 16 seconds backup solutions, disaster recovery and complianced driven hosting requirements. 2:23 2 minutes, 23 seconds Third pillar is cyber security through our uh subsidiary company Fluid. 2:28 2 minutes, 28 seconds Our specialized cyber security platforms uh platform provides consulting, security, operational, governance, risk and compliance services. 2:40 2 minutes, 40 seconds Core system integration through Aspirant are core strength bringing together hardware cloud and security capabilities into the complete enterprise solution. 2:49 2 minutes, 49 seconds Together these capabilities allow us to provide customers with an integrated technology stack rather than individual point solutions. 3:00 3 minutes Escort Technologies Incorporated in 2012 has built a strong technology foundation with more than 13 3:09 3 minutes, 9 seconds years of experience. Our current group structure includes Esconet Technologies Limited as the listed parent company, 3:16 3 minutes, 16 seconds ZCloud services as our 100% own cloud subsidiary, Fluid IT services as our 70% 3:24 3 minutes, 24 seconds owned cyber security uh subsidiary, Esconet Singapore as our international expansion vehicle. 3:32 3 minutes, 32 seconds Our ecosystem is further strengthened by important technology credentials. We have been appointed as Nvidia elite 3:40 3 minutes, 40 seconds partner status which is the highest level of partnership with Nvidia globally. Red Hat certified hardware capability. 3:49 3 minutes, 49 seconds Now our hexad data servers are certified by Red Hat on their uh software platform. 3:57 3 minutes, 57 seconds NCIPC accreditation through flu. Flute which is a cyber security subsidy 4:03 4 minutes, 3 seconds company has been uh accredited by NCIPC national critical infrastructure information protection center. 4:13 4 minutes, 13 seconds ISO certifications across quality information security and service management. These certifications validate our commitment towards enterprisegrade technology delivery. 4:25 4 minutes, 25 seconds With this strategic overview, I would like to now hand over the discussion to our CFO Mr. Kesha Pari who will take you 4:32 4 minutes, 32 seconds through the detailed financial performances, profitability analysis, balance sheet position and key financial priorities going forward. 4:42 4 minutes, 42 seconds Over to you. 4:44 4 minutes, 44 seconds Uh thank you sir. Uh good afternoon to all. I will now take you through the detailed financial performance of Espanet Technologies Limited for 4:52 4 minutes, 52 seconds financial year 2025 26 along with key factors impacting profitability, balance sheet developments and our outlook going 5:01 5 minutes, 1 second forward. Uh let me begin with our financial performance for financial year 202526. 5:08 5 minutes, 8 seconds The company delivered strong revenue growth during the year with a consolidated total income reaching to 357 crores representing a growth 53.4% yearonear. 5:19 5 minutes, 19 seconds Our standalone business also closed an important milestone achieving total income of approximately 300.72 cr 5:26 5 minutes, 26 seconds reflecting the continued strength of our core integration business. Uh the growth was driven by multiple factors. Number 5:35 5 minutes, 35 seconds one is expansion of our enterprise customer base. Second, increased contribution from technology infrastructure projects, 5:43 5 minutes, 43 seconds our growth across our hardware, cloud and cyber security initiatives, strategic investments made in building future growth engines. 5:52 5 minutes, 52 seconds The year also marked significant investments into future growth engines, particularly in cloud infrastructure, cyber security capabilities and advanced 5:59 5 minutes, 59 seconds computing solutions. This second half of current year demonstrated the strong recovery trajectory validating the 6:07 6 minutes, 7 seconds strength of our underlying business model and execution capabilities. During the year we continue to see strong demand across our technology segments. 6:18 6 minutes, 18 seconds Our revenue growth reflects the increasing relevance of our integrated technology model where customers are looking for end to-end solutions rather 6:25 6 minutes, 25 seconds than fragmented offerings. The strategic investments made in hexadata, zcloud and fluid are aimed at increasing our 6:33 6 minutes, 33 seconds addressible market and creating multiple scalable revenue streams. While this business are currently at different stages of maturity, they provide 6:42 6 minutes, 42 seconds significant long-term growth opportunities for the group. Uh moving to profitability, our consolidated AIDA 6:50 6 minutes, 50 seconds for financial year 2526 stood at 12.25 crores. The Aida margin was impacted during the year primary due to two 6:58 6 minutes, 58 seconds factors. First one is a significant increase in component cost across certain hardware categories. During the 7:05 7 minutes, 5 seconds year the technology hardware industry witnessed supply chair side challenges resulting in a sharp increases in 7:13 7 minutes, 13 seconds component prices. In some cases individual components experienced substantial cost escalation. Second we made deliberate investment in 7:21 7 minutes, 21 seconds strengthening our future growth platform. These investments included expansion of UDEX cyber security capabilities, development of G-Cloud 7:29 7 minutes, 29 seconds infrastructure and enhancement of delivery and operational capabilities. 7:33 7 minutes, 33 seconds These investments have impacted near-term margins but are expected to create operating leverage as these business scales. 7:42 7 minutes, 42 seconds Importantly importantly I would like to highlight the recovery achieved during the second 7:48 7 minutes, 48 seconds half of financial year 2526. The first half was impacted by the cost pressures and investment rated expenses. However, 7:56 7 minutes, 56 seconds the second half demonstrated a strong improvement directory backside. 8:03 8 minutes, 3 seconds So h half second half aida increases by approximately 183% compared with half year one. Half year two pat increased by 8:12 8 minutes, 12 seconds approximately 262% compared with half year one. And third is profitability improved as cost pressure stabilized and 8:19 8 minutes, 19 seconds operational efficiencies started reflected. This recovery demonstrate that the underlying business model model remains strong and provides confidence 8:28 8 minutes, 28 seconds for our future margin improvement. Also, our consolidated path for financial 25.6 stood at 6.16 cr. The year-on-year 8:37 8 minutes, 37 seconds decline in profitability was largely attributed to gross margin compens compression due to in input cost 8:44 8 minutes, 44 seconds inflation, strategic investments in growth business, temporary working capital greed finance cost. However, our 8:52 8 minutes, 52 seconds core standalone business remained resilient demonstrating the strength of our operational foundation. The second half performance provides a much 8:59 8 minutes, 59 seconds healthier base as we enter financial year 2627. 9:04 9 minutes, 4 seconds Coming to our balance sheet, we have maintained a disciplined approach towards capital management while continuing to invest in growth 9:12 9 minutes, 12 seconds capabilities. Key developments during the year include working capital improvement, pay receivables reduced by 9:19 9 minutes, 19 seconds approximately 8.5 crores, improving working capital efficiency. This reflects our continued focus on faster 9:26 9 minutes, 26 seconds collections, better project SQ execution cycles and disciplined customer and credit management. 9:32 9 minutes, 32 seconds Investment in infrastructure capability our property plant and equipment 9:39 9 minutes, 39 seconds increased from 4.75 cr to 9.89 cr. These investments have been made towards 9:47 9 minutes, 47 seconds strengthening the delivery uh delivery infrastructure expanding technology capabilities supporting large and more complex customer requirements. 9:55 9 minutes, 55 seconds These are the capability building investments that enhance our long-term execution capabilities. Our approach towards capital allocation remains 10:02 10 minutes, 2 seconds focused on balancing growth investments, financial discipline and long-term shareholder, value creation. We continue 10:09 10 minutes, 9 seconds to evaluate opportunities that hinder a technology ecosystem while maintaining prudent financial management. Our objective is to build sustainable 10:18 10 minutes, 18 seconds capabilities rather than the pursue short-term revenue growth without aggregate profitability. 10:25 10 minutes, 25 seconds To summarize, financial year 2526 was a year of strong revenue growth, strategic investments and capacity building. 10:33 10 minutes, 33 seconds While profitability was temporarily impacted due to external cost pressures, planned investments, the strong recovery in the second half demonstrate the 10:42 10 minutes, 42 seconds resilience of our business model. We believe the investment made during the year have created a stronger foundation for our future growth and we enter 10:49 10 minutes, 49 seconds financial year 2627 with a improved operational momentum and stronger capabilities and a clear focus on profitable growth. With this I would 10:57 10 minutes, 57 seconds like to hand the presentation back to our managing director Santos for the discussion on our business verticals, strategic initiatives and future outlook. Thank you. 11:07 11 minutes, 7 seconds Thank you Kisha. I'll now take uh you all through the individual business verticals and strategic initiatives that are shaping up our future growth. 11:19 11 minutes, 19 seconds Escalate integration continues to remain the foundation of our business. With over 13 years of experience, we provide end toend technology deployment 11:27 11 minutes, 27 seconds capabilities including enterprise infrastructure, data centers, networking, virtualization, cloud services, manage services. Our key 11:37 11 minutes, 37 seconds differentiation is our ability to integrate multiple technology layers and provide customers with complete solutions. 11:46 11 minutes, 46 seconds This integration capabilities creates strong synergy with our hexoderata ccloud and fluidic businesses. Hexada 11:54 11 minutes, 54 seconds represents our vision of building India's indigenous computing infrastructure capability. Our portfolio 12:01 12 minutes, 1 second includes enterprise servers, servers for artificial intelligence and machine learning, GPU workstations, 12:10 12 minutes, 10 seconds supercomputing platforms with AI capabilities. 12:14 12 minutes, 14 seconds A major milestone during the year was achieving the Nvidia elite partner status which provides us with enhanced 12:22 12 minutes, 22 seconds access to advanced computing technologies. beforehand the technology reaches the market. Our 12:30 12 minutes, 30 seconds Red Hat certification further strengthens our credibility in the enterprise infrastructure with increasing demand for AI analytics 12:39 12 minutes, 39 seconds and high performance computing. We believe hexadai well positioned to participate in this uh structural growth opportunity. 12:49 12 minutes, 49 seconds ZCloud is our cloud infrastructure growth platform. The business focuses on uh on G-Cloud are infrastructure as a 12:59 12 minutes, 59 seconds service, backup as a service, disaster recovery as a service. India's increasing focus on data localization, 13:07 13 minutes, 7 seconds security compliance and sovereign infrastructure creates a strong opportunity for domestic cloud platforms. Our focus remains on 13:16 13 minutes, 16 seconds achieving Mary empowerment and expanding our presence across government and regulated sectors. We believe Zart has 13:23 13 minutes, 23 seconds become a significant growth driver over the uh can become a significant growth driver over the next two or three years. 13:34 13 minutes, 34 seconds Cyber security continues to be one of our fastest growing technology segment. 13:40 13 minutes, 40 seconds Change the slide please. Yeah. Uh cyber security continues to be one of the fastest growing technology segments. 13:48 13 minutes, 48 seconds Rudek provides cyber security consulting, managed security services, security operations center capabilities and GRC solutions. 13:59 13 minutes, 59 seconds A key differentiator in Fluidex NCIPC uh differentiator is Fluidex Fluidex NCIPC 14:08 14 minutes, 8 seconds accreditation making it India's first organization with this recognition. 14:14 14 minutes, 14 seconds FI2526 was a capability building year. 14:19 14 minutes, 19 seconds Going forward, our focus is on converting the strong formulation into scalable revenue growth and [clears throat] operational profitability. 14:28 14 minutes, 28 seconds Espat Singapore represents our uh international growth initiative. The objective is to create a global channel 14:35 14 minutes, 35 seconds for our technology offerings including hexadata, zcloud and cyber security solutions. The subsidiary achieved 14:44 14 minutes, 44 seconds profitability in the first year demonstrating the potential of our international strategy. 14:51 14 minutes, 51 seconds On market opportunity, the technology landscape continues to create significant opportunities. Key structural growth drivers include 15:00 15 minutes increasing adoption of AI is accelerating demand for GPU computing and advanced infrastructure. 15:08 15 minutes, 8 seconds Data sovereignity, government regulations and enterprise uh requirements are driving demand for secure domestic platforms. 15:18 15 minutes, 18 seconds The increasing digital threat are expanding security uh security spending enhancing cyber security revenues. Uh 15:28 15 minutes, 28 seconds cloud adoption enterprises are moving towards hybrid and sovereign cloud environments. 15:35 15 minutes, 35 seconds On the digital transformation front, government and enterprise continue investing in modern technology infrastructure. These trends align 15:43 15 minutes, 43 seconds strongly with our sovereign stack strategy. 15:49 15 minutes, 49 seconds As we enter 2627, our priorities are clear. Improve profitability. Our focus 15:56 15 minutes, 56 seconds will be on margin improvement, operational efficiency, better business makes, higher contribution from scalable platforms. 16:09 16 minutes, 9 seconds Second would be scale cyber security business. We aim to accelerate fluid growth by uh leveraging it different 16:17 16 minutes, 17 seconds differentiated capabilities on the cloud front. M empanelment remains a key milestone for us for 16:24 16 minutes, 24 seconds unlocking government and regulated regulated sector opportunities. 16:30 16 minutes, 30 seconds And the last last but not the least we will continue expanding our indigenous computing portfolio aligned with AI and 16:37 16 minutes, 37 seconds HBC demand. We remain optimistic about the opportunity ahead and believe our integrated platform position us uh strongly for sustainable growth. 16:50 16 minutes, 50 seconds To conclude, FY26 has been a year of strategic transformation and capability building. 16:58 16 minutes, 58 seconds We have strengthened each layer of our technology ecosystem while continuing to deliver strong revenue growth. The temporary profitability impact during 17:06 17 minutes, 6 seconds the year was prim primarily driven by external cost pressures and deliberate investment into future growth platforms. 17:15 17 minutes, 15 seconds The recovery momentum visible in the second half validates the strength of our business model with with our 17:22 17 minutes, 22 seconds integrated sovereign stack approach, strong technology partnerships, differentiated capabilities and expansion expanding market 17:30 17 minutes, 30 seconds opportunities. We remain confident in our ability to create sustainable long-term value for our shareholders and 17:38 17 minutes, 38 seconds stakeholders. We sincerely thank all of our investors, customers, employees, and partners for their continued trust and 17:46 17 minutes, 46 seconds support. With this, we would like to open the floor for questions, suggestions, and further discussions. 17:53 17 minutes, 53 seconds We'll be happy to address your queries and share additional insights on our business strategy and outlook. Thank you so much. 18:04 18 minutes, 4 seconds Thank you sir. Uh now the floor is open for all the invites and attendees. If they have any questions or suggestions they can ask. I will mute them one by one. 18:23 18 minutes, 23 seconds So physicians I'm justing 18:45 18 minutes, 45 seconds [clears throat] 19:30 19 minutes, 30 seconds Hello. Yes, please ask your question. Yes. 19:38 19 minutes, 38 seconds Yes. Hi. Good afternoon, Santo G. I hope uh you're doing well. Um so, couple of questions from me. to start with uh in 19:47 19 minutes, 47 seconds H1 we had a um a big hit on the margins and my assumption is it was because 19:54 19 minutes, 54 seconds probably memory prices and maybe some other component prices moved up significantly and you had to honor 20:01 20 minutes, 1 second certain deals that were done at a agreed price. So incrementally what are we doing to protect this? it doesn't happen 20:09 20 minutes, 9 seconds because maybe the shortage for certain components will last for the next couple of years until new capacity comes up. 20:17 20 minutes, 17 seconds So to answer your question, H1 was a surprise for everyone everyone in the 20:24 20 minutes, 24 seconds industry that was the start of starting phase of the chip price escalation globally. 20:33 20 minutes, 33 seconds Nobody knew that this phase is coming. 20:36 20 minutes, 36 seconds It came to us as a surprise. We had already submitted certain proposals and uh which we had to honor and because 20:46 20 minutes, 46 seconds of which uh our profitability went down in that first half. The second half of course we were more cautious with 20:54 20 minutes, 54 seconds quoting. We were we had started quoting uh with some limited 21:02 21 minutes, 2 seconds uh visibility and limited uh validity of our course so that we do not face this kind of situation. 21:13 21 minutes, 13 seconds There is no defined rule on uh math as to how can we prevent this in future but 21:20 21 minutes, 20 seconds yes businesses do uh do take a cautious approach and we have been doing that and we'll continue to do that in the times in times to come. 21:32 21 minutes, 32 seconds Okay. Okay. Um one more question was on your operating structure I mean operating cost. Um both employee cost 21:41 21 minutes, 41 seconds and other expenses have moved up significantly particularly this year. Um can you shed 21:48 21 minutes, 48 seconds some light on you know what part of the investments have been made um for higher 21:55 21 minutes, 55 seconds expected growth in coming time and maybe these expenses won't see uh a similar growth going forward. 22:03 22 minutes, 3 seconds If you see what we had done is we had expanded our manpower capities across 22:10 22 minutes, 10 seconds all the uh business areas whether it was sales, peak sales, technical delivery or 22:17 22 minutes, 17 seconds uh uh infrastructure side. All the sides we had made investments. There were significant investments made in CCloud 22:25 22 minutes, 25 seconds last year. two because we were we had clarity in our mind that we will target 22:34 22 minutes, 34 seconds maybe empowerment next year and before that we need to improvise our infrastructure so that we can pass through all the audit requirements there 22:42 22 minutes, 42 seconds are maybe empowerment is not a simple process it's highly stringent and we had to prepare ourselves which 22:51 22 minutes, 51 seconds required investment and we did Okay. So you will see you will see a 22:59 22 minutes, 59 seconds cost increase across all sectors. Last year was again a year of turmoil with in 23:08 23 minutes, 8 seconds terms of certain deals which we picked up could not execute on time again because of the price 23:17 23 minutes, 17 seconds uh sensitivity and we had to wait because of which our working capital got stuck. Sometime we had to call back on 23:24 23 minutes, 24 seconds our bankers to for short-term uh leveraging the short-term working capital arrangements and because of 23:31 23 minutes, 31 seconds which certain financial costs have also gone up last year. 23:39 23 minutes, 39 seconds Okay. of uh you know just asking this question in in some other way um the 23:46 23 minutes, 46 seconds cost structure that has been built today um uh what kind of sales can it support incrementally now if we were at 350 23:54 23 minutes, 54 seconds crores um give or take last year um if the business moves to 5 to 600 crores in 24:02 24 minutes, 2 seconds topline do we still see u these expenses move up significantly or they will pretty much be you know slightly above 24:10 24 minutes, 10 seconds this if not significantly it it will definitely move up. Uh see manpower cost cannot be stable in any 24:19 24 minutes, 19 seconds business of the world even with the same number of people you will uh manpower cost keeps escalating year on year. 24:28 24 minutes, 28 seconds There is always a escalation which happens whether it is a single digit uh growth uh increase or it could be a 24:35 24 minutes, 35 seconds double digit increase also in certain years but uh I feel that Bangot cost will may 24:42 24 minutes, 42 seconds will go up if we have to touch that 500 mark but not so significantly the way it has been done in the last few years. 24:53 24 minutes, 53 seconds Perfect. That is what so basically what I meant to ask is can revenue growth be faster than expenses and I think you probably are saying the same thing. 25:04 25 minutes, 4 seconds Yeah. uh um any um any data on you know how how is business at hexa data on a 25:11 25 minutes, 11 seconds standalone basis now I think that is a big um lever for margin improvement and 25:18 25 minutes, 18 seconds um you know during the year you have also announced um about a lot of things getting approvals from multiple vendors 25:25 25 minutes, 25 seconds now you're an elite partner at NVDI so basically you get access to new u products coming from NVDI which you can 25:33 25 minutes, 33 seconds probably incorporate in your newer designs which before official launch of Nvidia's products. So how do how does this help you in coming times? 25:43 25 minutes, 43 seconds Yes. Uh we we do get a leverage of uh early technology disclosures from Nvidia 25:52 25 minutes, 52 seconds because we are an elite partner. Apart from that there are certain other incentives also what we get from it's a 25:59 25 minutes, 59 seconds figure by and it it has not just been uh simply awarded to it. It has been earned over the years. 26:08 26 minutes, 8 seconds uh apart from that we have had many other ts and we are improvising the position of extra data. Excel data is 26:17 26 minutes, 17 seconds significantly growing faster than the others other verticals within espanet 26:24 26 minutes, 24 seconds as of now and I see that excel would be the lead for espanet in terms of revenue growth in in the coming years. 26:36 26 minutes, 36 seconds Is there a possibility that in your integration business majority of the hardware in coming times comes from Hexa data? 26:45 26 minutes, 45 seconds Yes, that is our uh feature plan. 26:51 26 minutes, 51 seconds Okay. Okay. One last question from me before I fall back in the queue. Uh can you explain a bit about the scope of operations at your Singapore subsidiary? 27:02 27 minutes, 2 seconds Singapore subsidiary was initially incorporated to facilitate certain customers who enjoyed exemption and tax 27:11 27 minutes, 11 seconds reduction within India. That was the purpose of it. But uh suddenly as soon 27:18 27 minutes, 18 seconds as we have incorporated it we found that we can carry out many other businesses and 27:26 27 minutes, 26 seconds uh the way it has been moving currently whatever we are able to do whatever small or large business chunk we are 27:34 27 minutes, 34 seconds able to take out from through that subsidiary. There are certain global customers who would not want to place an order suppose with an Indian company. 27:43 27 minutes, 43 seconds They might have some restrictions. 27:46 27 minutes, 46 seconds Now they can easily place that on a Singapore company. Fine that is good for us. So we ask them to place it on Singapore and Singapore finally gets it 27:54 27 minutes, 54 seconds executed directly to us for it India or maybe whomsoever we wanted to execute it through. 28:02 28 minutes, 2 seconds So that is how it works. 28:05 28 minutes, 5 seconds Okay. But does this include only um you know include servers or also some 28:12 28 minutes, 12 seconds components or what? Because H2 the revenue contribution is significant. 28:17 28 minutes, 17 seconds I think almost 50 crores odd revenue from Singapore subsidiary alone um out of 200 odd crores while the 28:26 28 minutes, 26 seconds profitability is uh minimum. Nally, I would not want to discuss specifically 28:33 28 minutes, 33 seconds what we have done at Singapore as of now because of some confidentiality clauses and PDAs signed with our customers as well as B. 28:44 28 minutes, 44 seconds But mostly it is because of the current chip shortage situation the requirement uh the revenues of Singapore entity have significantly grown. 28:56 28 minutes, 56 seconds Okay. Okay. 28:59 28 minutes, 59 seconds No problem. I'll allow some maybe I'll fall back in the queue and uh let someone else ask questions. Thank you so much. 29:15 29 minutes, 15 seconds Anybody else who want to ask any questions? 29:20 29 minutes, 20 seconds They can raise their hands. I will unmute themselves and ask questions. 29:40 29 minutes, 40 seconds There's nobody else. 29:48 29 minutes, 48 seconds You can just mute yourself and ask a question. 30:00 30 minutes Are you there? Are you there? 30:20 30 minutes, 20 seconds You are mute. airport. You can just unmute yourself and then ask question. 30:53 30 minutes, 53 seconds Let me take one more question. 31:09 31 minutes, 9 seconds You can unmute yourself and ask a question. 31:12 31 minutes, 12 seconds Yes. Um so you mentioned one point about matey empanelment in zcloud. Um I think 31:20 31 minutes, 20 seconds post that the company becomes eligible for hosting um sovereign data or basically go data 31:28 31 minutes, 28 seconds owned by the government. Um can you talk a bit about how big can this be once the empanment is done and also does it also 31:37 31 minutes, 37 seconds help the fluid tech and hexadata business? 31:42 31 minutes, 42 seconds Uh so with empowerment zcloud will definitely 31:50 31 minutes, 50 seconds be eligible to not only government data but public sector data as well as certain critical 31:57 31 minutes, 57 seconds data which is which can only be uh hosted with a category called GC uh 32:04 32 minutes, 4 seconds government cloud capability Java cloud capability. 32:09 32 minutes, 9 seconds So which means there will be significant expansion required in Zcloud also 32:16 32 minutes, 16 seconds which actually since uh fluid deck is offering its cyber security services to 32:21 32 minutes, 21 seconds zcloud internally and uh the compute architecture of zinccloud is based on 32:29 32 minutes, 29 seconds data uh hardware. So definitely both these entities will benefit out of any 32:36 32 minutes, 36 seconds expansion in zcloud and how big can zcloud become I don't 32:46 32 minutes, 46 seconds think there is a limit to it after that it will all depend on the capability of the team how well we can sell how well 32:55 32 minutes, 55 seconds we can deliver how well we can convince our customers 33:02 33 minutes, 2 seconds And how does ZCloud differentiate its offerings uh versus other peers in the market? Do we have our own tech stack or something? 33:15 33 minutes, 15 seconds N I think that requires a larger discussion. this is not the right forum as to for for that discussion as to how 33:23 33 minutes, 23 seconds does it differentiate because that's more of a technology stack rather than just describing as a sales 33:32 33 minutes, 32 seconds pitch or something. So uh if you want to understand the technology stone session I can explain it to you. 33:43 33 minutes, 43 seconds Sure. Sure. Thank you. 33:50 33 minutes, 50 seconds You can ask me question 34:07 34 minutes, 7 seconds maybe [clears throat] connected. 34:14 34 minutes, 14 seconds So next anyone is who want to ask any questions? I have some sense. 34:49 34 minutes, 49 seconds recording [clears throat] here. There's no other question. 35:02 35 minutes, 2 seconds uh we will assume this meeting has concluded now. 35:08 35 minutes, 8 seconds So there is no other questions being asked apart from who asked the questions and the all the 35:15 35 minutes, 15 seconds questions have been answered and one more announcement our management has to do is that we are now onwards going 35:24 35 minutes, 24 seconds forward from the quarter ending that June we will be announcing the quarterly results from now onwards 35:32 35 minutes, 32 seconds this financial year onwards we will we will start declaring our financials on a quarterly basis is similar to what main 35:41 35 minutes, 41 seconds board companies do. So that is another uh important announcement by the board and management of student technologies. 35:49 35 minutes, 49 seconds [clears throat] 35:52 35 minutes, 52 seconds With this update now there is no other questions being asked either through raising hands through Q&A or chats. So 36:01 36 minutes, 1 second now we can conclude this meeting with the public. Yes. So now the meeting stands for mute. 36:08 36 minutes, 8 seconds You are requested you can leave the meeting stands for good. 36:16 36 minutes, 16 seconds Thank you all for joining this video and