Excelsoft Technologies Limited — Q3 FY26

Excelsoft Technologies Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=DUv6NfWB3nQ Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to the Excel Soft Technologies Limited Q3 and 9 months SY26 earnings 0:08 8 seconds conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions 0:15 15 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:23 23 seconds your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Amit 0:31 31 seconds Sharma from Atactors PR. Thank you and over to you sir. Thank you. Good morning everyone. 0:40 40 seconds Welcome to the Q3 and 9 months FY26 earnings conference call of Excelsoft Technologies Limited. Today from the 0:49 49 seconds management we have with us Mr. Danj Sudan, chairman and managing director. Mr. Prashant HM head of strategy, Mr. 0:58 58 seconds Subramanyam Ravi, Chief Financial Officer and also the Attractor's AR team. We will begin the call with the 1:06 1 minute, 6 seconds opening remarks from the management after which we shall open the forum for the Q&A session. I must remind you that this conference may include 1:16 1 minute, 16 seconds forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the management as of the date of this call. 1:24 1 minute, 24 seconds The statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict. I now hand over the conference 1:32 1 minute, 32 seconds to Mrs. Danja Sudhan for the opening remarks. Thank you and over to you sir. 1:39 1 minute, 39 seconds So thank you very much. Uh good morning uh everyone who's joined the call today. 1:45 1 minute, 45 seconds Thank you for joining us to discuss Exceloft Technologies financial results for the third quarter and first 9 months of FI26. 1:56 1 minute, 56 seconds I'm uh pleased to report that Exceloft has delivered another quarter of robust 2:03 2 minutes, 3 seconds performance characterized by healthy topline growth fueled by our education 2:09 2 minutes, 9 seconds technology divisions and uh our products as well. Throughout the first 9 months 2:16 2 minutes, 16 seconds of the fiscal year, we have maintained discipline in executing our core uh 2:23 2 minutes, 23 seconds strategic pillars. First uh is market expansions. We are scaling out uh our 2:31 2 minutes, 31 seconds geographical footprint and deepening our international presence. We have diversified into newer geographies 2:40 2 minutes, 40 seconds uh and acquired newer customers in geographies which previously we had not addressed. Uh the examples will come 2:49 2 minutes, 49 seconds through in the uh next presentation. uh my colleague Prashant will make uh we've 2:56 2 minutes, 56 seconds done it through uh establishing sales teams in geographical locations that 3:04 3 minutes, 4 seconds matter to our business and also through uh 3:10 3 minutes, 10 seconds contracts with partners in local geographies uh like the US uh and UK to 3:19 3 minutes, 19 seconds help us uh bring in the network in those countries. The second one is client optimization. 3:26 3 minutes, 26 seconds Um growing our existing uh customer accounts via uh cross-selling 3:36 3 minutes, 36 seconds um products to customers who are services customers and cross-selling 3:42 3 minutes, 42 seconds services to customers who have been typically products customers crossellings. Uh there is a certain 3:50 3 minutes, 50 seconds amount of revenue growth and uh order booking very healthy order booking that has happened in this quarter uh on account of crossing uh aggressively. 4:04 4 minutes, 4 seconds Um typically higher value uh higher margin uh sales uh in uh platformled uh engagements. 4:16 4 minutes, 16 seconds operational excellence uh strengthening our balance sheet to ensure sustainable 4:24 4 minutes, 24 seconds long-term value creation uh was a uh key uh emphasis and uh 4:35 4 minutes, 35 seconds collectively the leadership team has worked towards strengthening our balance sheet uh and Ravi our CFO will uh talk 4:45 4 minutes, 45 seconds about it. We also have uh are endeavoring to bring in uh a lot more uh 4:54 4 minutes, 54 seconds financial discipline. Uh we are uh engaged with uh one of the big four uh consulting firms uh in India. 5:08 5 minutes, 8 seconds currently doing a business proh business business process and controls audit uh on Excelsoft and uh eventually uh we 5:18 5 minutes, 18 seconds will have one of the big four as our statutory auditor for the next FYI. Um 5:26 5 minutes, 26 seconds the global uh demand for uh secure uh scalable and uh tech enabled 5:35 5 minutes, 35 seconds assessment and high state testing solutions is accelerating. 5:42 5 minutes, 42 seconds Uh it's driven by the digital transformation happening in the in broadly the education and skilling 5:49 5 minutes, 49 seconds sector uh including professional certifications which are becoming in uh becoming very important particularly in 5:57 5 minutes, 57 seconds the vocational space and public sector uh examinations which are large in 6:04 6 minutes, 4 seconds number which delivers volumes to us is also seeing growth. This momentum is uh 6:12 6 minutes, 12 seconds directly reflected in our uh robust deal pipeline 6:19 6 minutes, 19 seconds uh growth and order inflows particularly in the last few months um uh which are 6:29 6 minutes, 29 seconds substantial in nature which are recent uh uh orders and contracts. We've 6:35 6 minutes, 35 seconds secured several landmark collaborations that underscore our uh leadership in the 6:42 6 minutes, 42 seconds assessment space. our partnership with AQA in the UK 6:51 6 minutes, 51 seconds uh which is one of the world's uh most prestigious and arguably the largest 6:59 6 minutes, 59 seconds uh examination certification and awarding body is in progress. 7:07 7 minutes, 7 seconds uh we have formally signed an agreement to uh do joint R&D and to explore 7:19 7 minutes, 19 seconds uh collaboration uh of new generation products in the uh 7:25 7 minutes, 25 seconds AI and testing area which uh will roll out uh later this year. This momentum is 7:34 7 minutes, 34 seconds directly reflected in our uh deal pipeline and uh recent order uh inflows. 7:43 7 minutes, 43 seconds Um by uh um by uh hold on for a second. 7:54 7 minutes, 54 seconds This is a pioneering innovation in high stakes assessment 8:01 8 minutes, 1 second uh where uh a large assessment organization uh and uh large technology products come 8:11 8 minutes, 11 seconds together and use ethical AI in high stakes testing. Um AI has been an 8:18 8 minutes, 18 seconds important feature as you would see um that adoption of AI in the generally in the IT sector uh has been prevalent. 8:31 8 minutes, 31 seconds uh in our case uh AI uh adoption in uh 8:38 8 minutes, 38 seconds the use of uh test and assessment technology has been primarily focused in the domain of assessments and testing. 8:47 8 minutes, 47 seconds So the kind of headwinds you see in IT services area due to AI we don't see in 8:53 8 minutes, 53 seconds our area because of the niche uh uh nature of uh our business uh we are not 9:02 9 minutes, 2 seconds seeing any uh headwinds. We also have invested and continue to invest quite 9:08 9 minutes, 8 seconds heavily in building our own AI hardware infrastructure. In fact, the entire 9:14 9 minutes, 14 seconds stack from uh uh GPU forms to uh large 9:21 9 minutes, 21 seconds language models, multiple large language models to building micro apps on top of 9:27 9 minutes, 27 seconds that which we can use uh for native AI testing and native AI assessments. we 9:36 9 minutes, 36 seconds are ensuring that we don't follow industry trends but actively share them. 9:43 9 minutes, 43 seconds Um we uh have been invited in many prestigious conferences around the world 9:52 9 minutes, 52 seconds uh to speak uh in these conferences as thought leaders in the industry we are 9:57 9 minutes, 57 seconds in particularly uh with uh uh AI enablement. 10:04 10 minutes, 4 seconds Looking ahead, our uh road map remains focused. Uh we will scale our core platforms. 10:12 10 minutes, 12 seconds Uh we will capture larger shares of the uh international uh markets that we work 10:19 10 minutes, 19 seconds in. Um it could be uh education and publishing companies, government markets 10:26 10 minutes, 26 seconds and institutional markets. Um we are pion pioneering AI enabled cloudnative 10:33 10 minutes, 33 seconds solutions that differentiate excelsoft on the global stage. Um we have uh 10:42 10 minutes, 42 seconds implemented AI at the edge network edge and going into 10:51 10 minutes, 51 seconds uh potent you know uh moving all hardware we have including laptops and 10:58 10 minutes, 58 seconds servers uh to become uh AI enabled which means we'll be a fully AI enabled infrastructure. 11:07 11 minutes, 7 seconds Um this is not on the cloud. Uh this is a data center approach uh which is very 11:14 11 minutes, 14 seconds much in our facility. So it is secure and the data is secure and meets all the standards. 11:22 11 minutes, 22 seconds Um with that I would now like to hand over the call 11:30 11 minutes, 30 seconds to our chief strategy officer Prashant and CFO Ravi. subsequently who will walk 11:38 11 minutes, 38 seconds you through the highlights for the quarter and the 9 month uh period. 11:44 11 minutes, 44 seconds Following their remarks, we will be happy to take your questions. And uh now over to Prashant. 11:55 11 minutes, 55 seconds Thank you sir. Thank you. U good morning everyone. 11:59 11 minutes, 59 seconds The third quarter and the first nine months of FI26 have been a period of exceptional momentum for Exosoft marked 12:07 12 minutes, 7 seconds by significant progress across our strategic, operational and product development initiatives. 12:14 12 minutes, 14 seconds The strategic direction we took a couple of years ago of providing emphasis on repeatable licensable products 12:23 12 minutes, 23 seconds particularly in the assessment business and at the same time continued focus on services has been yielding excellent 12:30 12 minutes, 30 seconds results which makes us very confident of a predictable sustainable stronger growth. This build up of revenues and 12:38 12 minutes, 38 seconds profits is a result of the direction we took earlier and uh we are seeing this result and we are very confident that we 12:46 12 minutes, 46 seconds will be able to continue this momentum in the future years as well. 12:52 12 minutes, 52 seconds Uh among many other customer wins and contract renewals that we had during the period. A primary highlight this quarter 13:00 13 minutes is our partnership with the Civil Services Commission of the Philippines in collaboration with Assyometrics. 13:07 13 minutes, 7 seconds Exoft will provide power the civil services digital examination starting in 2026. 13:15 13 minutes, 15 seconds Leveraging our SARS e assessment platform. This multi-year engagement validates our ability to deliver high 13:23 13 minutes, 23 seconds integrity, large scale digital assessments and establishes a cleared path for recurring platform-driven 13:31 13 minutes, 31 seconds revenue repeating our success in other civil services examinations that we have delivered in the past. 13:38 13 minutes, 38 seconds We have also solidified our UK footprint through a major multi-year engagement 13:45 13 minutes, 45 seconds with BTC skills which is vocational training charitable trust uh to deploy our next generation SARS school testing 13:54 13 minutes, 54 seconds platform facilitating uh 300,000 vocational and technical examinations delivered online every year. 14:05 14 minutes, 5 seconds Beyond these strategic wins, our financial performance has been bolstered by a 58% growth in our education 14:13 14 minutes, 13 seconds technology services vertical this year this quarter. This surge reflects a broader market trend where clients are 14:21 14 minutes, 21 seconds investing heavily in system integrations, cloud transitions and custom development. This vertical continues to contribute meaningfully 14:30 14 minutes, 30 seconds alongside our learning design and content solutions division which has turned around in the last quarter significantly. 14:41 14 minutes, 41 seconds These results signal a fundamental shift in our business model as we evolve from a traditional solution provider to a 14:49 14 minutes, 49 seconds platform recurring revenue business. Our revenue profile remains globally diversified yet anchored by strong 14:59 14 minutes, 59 seconds regional performance. North America continues to be our primary market contributing 72% of Q3 revenue while we 15:07 15 minutes, 7 seconds see exhilarating traction in Europe and UK. India and the broader Asian markets also remain vital provide particularly 15:16 15 minutes, 16 seconds in digital learning and servicesled environment. This geographic reach is matched by the extraordinary stability of our client base. 15:26 15 minutes, 26 seconds We have added 10 new clients during the 9 month period. Yet our top 10 customers maintain an average tenure of nearly 11 15:36 15 minutes, 36 seconds years. Top 10 customers have been with us on an average of 11 years. this volatile market in in this volatile 15:43 15 minutes, 43 seconds market this 80% revenue contribution from long-term partners provides us with a highly predictable cash flow and a 15:51 15 minutes, 51 seconds robust foundation for cross setting operationally our global teams across my hydro 16:00 16 minutes and our international hubs have demonstrated seamless delivery during peak examination cycles and delivery 16:07 16 minutes, 7 seconds cycles and we remain committed to strengthening our engineering and AI capabilities to maintain our competitive edge as mentioned by our chairman. 16:19 16 minutes, 19 seconds On a different note, we have successfully withdrawn the 300 cr corporate guarantee and also released 16:26 16 minutes, 26 seconds the 165 crosit lean that was marked earlier. These milestones reduce contingent liabilities 16:35 16 minutes, 35 seconds and provide us with the financial flexibility to aggressively invest in innovation and growth through organic and inorganic means. 16:45 16 minutes, 45 seconds With this uh I now hand over the call to our CFO Mr. Subramanyam Davi to take you through the detailed financial 16:52 16 minutes, 52 seconds performance and three financial performance of Q3 FI26 and 9 months FI26. 17:03 17 minutes, 3 seconds Thank you Prashant and good morning everyone. Let me now walk you through the financial performance for the 17:09 17 minutes, 9 seconds quarter and 9 months ended December 31st 2025. 17:14 17 minutes, 14 seconds Q3 FI26 versus Q3 FI25 year on year. The revenue from the operations for Q3 FI26 17:22 17 minutes, 22 seconds at 710 million compared to 549 million in Q3 FI25 registering a robust growth of 29.5%. 17:32 17 minutes, 32 seconds This growth was driven by strong contributions from the educational technology services segment which increased by 171 million representing a 17:42 17 minutes, 42 seconds 58% yearon-year growth. The EITA for Q3 FI26 stood at 197 million compared to 180 million in Q3 FI25. 17:54 17 minutes, 54 seconds Market growth of 9.15%. 17:58 17 minutes, 58 seconds Aida margins were 27.7% compared to 32.8% in the prior year. The 18:06 18 minutes, 6 seconds reduction in the margin is primarily attributable to a 61% increase in other expenses which rose from 98 million to 18:15 18 minutes, 15 seconds 157 billion driven by higher vendor stock resources cost as well as legal and professional fees. The employee 18:24 18 minutes, 24 seconds benefit expenses increased by 31.5% to 356 million which is reflecting our 18:31 18 minutes, 31 seconds continued investment in talent and engineering capabilities. 18:35 18 minutes, 35 seconds Profit after tax for Q3 FI26 was 103 million compared to 96 million in Q3 18:43 18 minutes, 43 seconds FI25 registering a growth of 7.7%. 18:48 18 minutes, 48 seconds Fat margins were 14.5% compared to 17.4% in the prior year. We have implemented 18:57 18 minutes, 57 seconds the new labor code the impact of which is to the tune of 40.7 million on increased gradually and leave and cash 19:06 19 minutes, 6 seconds provision. After factoring in the net of tax impact of this exceptional item, the 19:12 19 minutes, 12 seconds profit after tax for the Q3 was 133 million reflecting a growth of 40% and 19:18 19 minutes, 18 seconds pack margin was at 18.8% compared to 17.4% 4% in the prior year 19:25 19 minutes, 25 seconds 9 months FI26 versus 9 months FI25 yearon year comparison for the 9 months 19:33 19 minutes, 33 seconds the revenue from the operations to add,914 million compared to,634 19:40 19 minutes, 40 seconds million in 9 months FI25 representing a year-on-year growth of 17.13%. 19:48 19 minutes, 48 seconds Revenue from the assessment and pockering solutions increased from 400 million to 56 million reflecting a growth of 26.5%. 19:59 19 minutes, 59 seconds EPA for 9 months FI26 stood at 472 million compared to 441 million in 9 months. FI25 growing by 7%. 20:12 20 minutes, 12 seconds Evida margins stood at 24.74% compared to 27% in the previous year. 20:20 20 minutes, 20 seconds The decline in margin is attributable to increase in other expenses primarily due to higher legal and professional fees mentioned earlier. 20:30 20 minutes, 30 seconds for 9 months FI26 was 268 million compared to 142 million in 9 months FI25 20:37 20 minutes, 37 seconds showing significant growth of 88% due to large reductions in the current times the fat margins for the prior period at 20:46 20 minutes, 46 seconds 14% with a growth of 530 basis points factoring in the impact of the new labor code implementation that was 298 million 20:56 20 minutes, 56 seconds which means a growth of 110% The segmental performance in Q3 FI26 21:04 21 minutes, 4 seconds educational technology services contributed the largest share of revenue at 65.7% followed by assessment and proctoring 21:13 21 minutes, 13 seconds solutions at 21% learning and student success solutions at 9.6% and learning and design and content solutions at 3.6%. 21:24 21 minutes, 24 seconds for 9 months FI26 educational technology services contributed 67.5% 21:31 21 minutes, 31 seconds while assessment and solutions contributed 26.4% learning and student success solutions 10.7%. 21:40 21 minutes, 40 seconds And learning design and content 5.3%. 21:44 21 minutes, 44 seconds So geography and client concentration North America remained our largest geography contributing 72.2% 2% of Q3 revenue and 65.7% of 9 month revenue. 21:57 21 minutes, 57 seconds Europe and UK contributed 18.3% in Q3 and 21.5% in 9 months. Revenue 22:04 22 minutes, 4 seconds concentration among the top five customers stood at 72.2% in Q3 reflecting our long-term 22:12 22 minutes, 12 seconds relationship with the major global clients. With this now I will open the floor for Q&A session. 22:20 22 minutes, 20 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone 22:28 22 minutes, 28 seconds telephone. If you wish to remove yourself from the question queue, you will press star and two. Participants are requested to use handsets while 22:37 22 minutes, 37 seconds asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 22:43 22 minutes, 43 seconds The first question is from the line of Deepak Podar from Safire Capital. Please go ahead. Am I audible sir? 22:53 22 minutes, 53 seconds Yes. 22:54 22 minutes, 54 seconds Yeah. Thank you very much uh for this uh opportunity and uh many congratulation for good numbers. Um so just first up 23:02 23 minutes, 2 seconds wanted to understand in terms of your seasonality I mean is there any seasonality in our business or or or one 23:09 23 minutes, 9 seconds can see linear cotton cotton growth right u you are right it is not a linear 23:18 23 minutes, 18 seconds quarter on quarter growth it is typically heavier on the second half if you look at the quarter wise 23:26 23 minutes, 26 seconds traditionally last several years the Q4 is the heaviest That means it is upwards 23:33 23 minutes, 33 seconds of 30%. That has been the trend. 30% of the total revenue for the year is what we clock in the Q4 and that has been a 23:41 23 minutes, 41 seconds trend for the last several years and uh this year would be no exception. 23:47 23 minutes, 47 seconds Okay. Okay. Um I got it. And secondly on your uh order uh book and inflow I mean you you mentioned that you're seeing 23:56 23 minutes, 56 seconds very very robust deal pipeline and order inflow last few months. Can you uh throw some more light? I mean uh what sort of 24:04 24 minutes, 4 seconds order inflow we have received and what the deal pipeline and where do you see it going forward? 24:11 24 minutes, 11 seconds U what Mr. Suzan in his opening remarks mentioned about the deal wins are a number of wins which include both new 24:19 24 minutes, 19 seconds customers that we have acquired as well as renewals from our existing customers. 24:25 24 minutes, 25 seconds Uh renewals meaning you know an existing project that is renewed or maybe a new project with the same customer. So all 24:32 24 minutes, 32 seconds on all accounts we have had uh wins in the last quarter and of course in the last 9 months. Um many of those wins 24:41 24 minutes, 41 seconds that we have had uh we were not able to announce for reasons that you know the customer uh the customer consents were 24:48 24 minutes, 48 seconds not just 24:55 24 minutes, 55 seconds yeah the c for want of customer consents uh we couldn't announce it uh but for what we have got consents we have 25:03 25 minutes, 3 seconds announced like the Philippines uh services exams that we announced the vocational training charity trust that we announced, AQA uh partnership is what 25:11 25 minutes, 11 seconds we announced. All these are very significant large uh opportunities that we are going after and 25:19 25 minutes, 19 seconds it's it's possible to quantify the new alone. 25:24 25 minutes, 24 seconds Uh yeah, is it possible to quantify? I mean what would be our order book right now in terms of rupees cross are we I'm I'm not sure if we are 25:32 25 minutes, 32 seconds allowed to but uh if we are allowed we will uh take a note on all the new ordering 25:41 25 minutes, 41 seconds okay yeah sir we are we are not giving guidance at this point in time once we decide on that we will be able to publish 25:49 25 minutes, 49 seconds yeah sure that would be helpful and just my last thing on AQA uh so you mentioned about that partnership so what's the 25:56 25 minutes, 56 seconds opportunity size we are seeing there and when revenue from AQA can start and and what uh what is the typical margin 26:04 26 minutes, 4 seconds profile you expect in this AQA area? uh the uh 26:11 26 minutes, 11 seconds HA is a massive size uh because globally there are uh one of the biggest uh as I 26:18 26 minutes, 18 seconds said earlier biggest assessment and uh certification authorities 26:25 26 minutes, 25 seconds uh we've agreed uh that we will uh do two things one is uh joint research and 26:35 26 minutes, 35 seconds development to explore the horizons of uh where assessment and digital assessments particularly on online 26:44 26 minutes, 44 seconds digital assessment is going um including technology. We have had multiple 26:52 26 minutes, 52 seconds workshops and as we speak we have a team from AQA here in Mysore 26:59 26 minutes, 59 seconds uh talking through the scope of uh uh work we will be doing on the AQA 27:04 27 minutes, 4 seconds contract. Um the uh development uh the contract is uh 27:13 27 minutes, 13 seconds uh I hope I can say the contract is nearly finalized. So it will be uh a 27:21 27 minutes, 21 seconds contract signed this quarter and you will start we will start seeing revenues 27:28 27 minutes, 28 seconds uh starting next quarter and revenues will grow and build up over the next uh few years as the number of exams that are put through our system uh increase. 27:40 27 minutes, 40 seconds So it's a very strong and robust relationship and uh um is uh pretty much sealed. 27:49 27 minutes, 49 seconds Okay. So so you're saying revenue will start from this first quarter. Yeah. 27:54 27 minutes, 54 seconds But but at the peak what sort of opportunity side we are seeing I mean how much revenue we can expect from here maybe next 2 3 years or something like that? 28:01 28 minutes, 1 second Uh sir we are afraid we'll not be able to disclose too much around it sir but you will soon see an announcement on that once the deal is closed. 28:10 28 minutes, 10 seconds Okay. It's I can give you a feel that it'll be large because there will be several million 28:17 28 minutes, 17 seconds uh answer scripts that eventually we'll be putting through our platforms. There are two platforms. for uh uh conversion 28:26 28 minutes, 26 seconds uh of exam scripts which are handwritten you know the so many different kinds of 28:35 28 minutes, 35 seconds handwriting to uh standards and then uh an AI based tool for marking auto 28:44 28 minutes, 44 seconds marking these questions uh with a human uh check at the end of the process uh Um 28:53 28 minutes, 53 seconds so broadly that's what I can say these will uh give you the numbers uh ASAP 29:01 29 minutes, 1 second unders and and the margin profile need will be similar to your company level margin profile I mean it's better 29:08 29 minutes, 8 seconds maybe slightly better definitely not the link below yeah it's if it's mostly licensed it will be better than the 29:16 29 minutes, 16 seconds company average understood and that would be from my side I mean all the very best to you thank you so much thank you very Thank you. 29:24 29 minutes, 24 seconds Thank you. 29:25 29 minutes, 25 seconds A reminder to all participants. Anyone who wishes to ask a question may press star N1. 29:32 29 minutes, 32 seconds The next question is from the line of Proful Ry from Arjaf Partners. Please go ahead. 29:39 29 minutes, 39 seconds Uh sir, hi this is Proful. Um I have just one question. Hello. Yes, good morning. Yes, we can. Good morning. 29:46 29 minutes, 46 seconds Yeah. Uh I just have one question. In this quarter we said the margins came down because of some uh sort of one-off things. So can you quantify what is the 29:54 29 minutes, 54 seconds total impact of these one-off things on the margins in the current quarter? 29:58 29 minutes, 58 seconds Sure. Sure. Yes sir. Uh we wanted to bring it up our as well. Thank you for reminding us. Uh sir the legal and 30:07 30 minutes, 7 seconds professional fees that Mr. Ravi mentioned about uh which is particularly driven by uh the legal and professional 30:16 30 minutes, 16 seconds fees towards the acquisition opportunities that we were going after. 30:20 30 minutes, 20 seconds See we we engaged external consultants uh investment bankers to look for uh targets target acquisition companies in 30:30 30 minutes, 30 seconds different geographies and they were on a retainer. The investment bankers were on the retainer as well as we did due 30:37 30 minutes, 37 seconds diligence both financial due diligence and uh legal due diligence of uh one company. Uh this is an exceptional item. 30:45 30 minutes, 45 seconds This is oneoff expense uh which was to the tune of uh in the quarter which was 30:50 30 minutes, 50 seconds to the tune of about roughly 1 so sorry 2.89 crores almost 2.9 crores. 31:00 31 minutes So 2.9 crores is what the extends towards this one-off item on legal and professional services. So that if you 31:09 31 minutes, 9 seconds add that back into the AITA the AITA margin would be 32% which is in line 31:17 31 minutes, 17 seconds with the previous period. So uh what you see as 27% uh uh in the in the notes that Mr. 31:26 31 minutes, 26 seconds Ravi gave it spoke about a 27% AIA margin which actually is a 32% if you 31:33 31 minutes, 33 seconds factor in the oneoff expenses towards activation the second question. 31:43 31 minutes, 43 seconds Yeah. Hello. Yes sir. Go on. Go on. 31:48 31 minutes, 48 seconds Yeah. This is one. Is there any other one? Is there any other one off? 31:58 31 minutes, 58 seconds The other one that we spoke about was the impact of labor code which is an that is mentioned that is specifically 32:07 32 minutes, 7 seconds that is and third on the acquisition side we are uh we have been actively looking for it are we close to any 32:14 32 minutes, 14 seconds transaction materializing uh sir uh we have been evaluating like what I said we have done the due 32:22 32 minutes, 22 seconds diligence of one company already both legal legal and financial uh but I'm afraid we may not be able to announce uh 32:30 32 minutes, 30 seconds on this call right away until we sign it off sir u but but be rest assured that we are actively looking for at the same time we are very 32:38 32 minutes, 38 seconds careful about uh uh the the companies you know we are not going too bullish and just like that acquiring we are 32:45 32 minutes, 45 seconds making a very very you know clear and uh careful diligence of those companies both from the uh strategic uh you 32:54 32 minutes, 54 seconds alignment point of view uh as well as the integration possibilities you know possible risks that we see in the 33:02 33 minutes, 2 seconds integration and the synergies so we are very careful about the the target companies and we'll make sure that we have the right one when we are ready for 33:10 33 minutes, 10 seconds uh one so we'll announce at how far I are we to any meaningful acquisition in terms of timelines do you have any sense 33:18 33 minutes, 18 seconds of time because you have already spent some three odd crows very serious activity you are pursuing Uh if I may ask what's your sense I we 33:27 33 minutes, 27 seconds will not hold you for it but what's your sense of the timelines? 33:30 33 minutes, 30 seconds Uh we have an American company where we have completed due diligence and uh uh we are discussing valuations. 33:42 33 minutes, 42 seconds Um as always sir as you would know there will be a little bit of uh heleagle towards the before we 33:52 33 minutes, 52 seconds converge on the valuation that is the stage we are in with uh an American company which we target to acquire. Uh 34:01 34 minutes, 1 second there is uh there are a couple of other targets in the UK uh where due diligence 34:09 34 minutes, 9 seconds uh has started. uh we haven't yet got into the uh uh valuation stage. 34:18 34 minutes, 18 seconds Okay. The last question, what is the cash net cash of balance we have as we see? 34:26 34 minutes, 26 seconds Uh without the IPO proceeds or including the IPO is we are done. That's the money we have in what's the total cash we have? 34:36 34 minutes, 36 seconds 400 400 42 421 421 net cash balance means net of all outstanding debt is there. 34:46 34 minutes, 46 seconds Yes. Okay sir. Thanks a lot. Okay. Thank you. 34:52 34 minutes, 52 seconds The next question is from the line of sana an individual investor. Please go ahead. 35:00 35 minutes Hello. Thank you for the opportunity sir. Thank you. 35:03 35 minutes, 3 seconds Good morning. Uh sir I wanted to ask like few questions. Is the company actively evaluating inorganic growth opportunities? 35:13 35 minutes, 13 seconds Uh as as uh Mr. Sudan responded in the earlier question of Mr. Claful uh we are 35:22 35 minutes, 22 seconds looking at inorganic growth opportunities v strategic acquisition. 35:27 35 minutes, 27 seconds Uh but like what I said earlier you know we are not acquiring for the sake of uh growth alone. We are very careful. We 35:35 35 minutes, 35 seconds are we want to be acquiring companies which can provide strategic value and uh integration should contribute to uh 35:43 35 minutes, 43 seconds higher you know uh higher output than 1 + 1 complement. 35:49 35 minutes, 49 seconds Yeah. and uh the sales team at the uh so that we can quickly uh unlock the 35:58 35 minutes, 58 seconds sales team and capability in those geographies geographies and most importantly diversifying our uh 36:06 36 minutes, 6 seconds geographical concentration. Uh hence we are looking at uh acquisition targets in 36:13 36 minutes, 13 seconds uh other countries as well. So we are part so that we will be diversifying our uh geographical markets. 36:24 36 minutes, 24 seconds Okay. Uh sir your voice is uh like getting echoed and um another question I 36:32 36 minutes, 32 seconds have is what are our primary growth drivers for over next two to three to four years. 36:39 36 minutes, 39 seconds Right. So the primary growth drivers are multiffold. One is from the uh growth of 36:46 36 minutes, 46 seconds revenues via existing customers where we look at both mining the existing customers for additional projects and 36:56 36 minutes, 56 seconds growth in the existing projects. Uh as you would know the model that we work with is where we we uh the pricing model 37:04 37 minutes, 4 seconds is on a per test if it comes to assessment and per user in the learning and so on and so forth. So if our customers are able to deliver more 37:12 37 minutes, 12 seconds tests, their tests succeeding in the market, uh the the benefit of that translates in higher revenues for us as 37:20 37 minutes, 20 seconds well. So if we do a good job on the platforms that we provide to our customers and they succeed in their business, the number of tests that they 37:28 37 minutes, 28 seconds deliver increases and therefore our revenue also will increase. That is the primary thing. Then there could be additional projects or additional you 37:36 37 minutes, 36 seconds know exams for instance in some of these exam bodies or you know in the services area we would get additional projects with our customers. So mining uh you 37:45 37 minutes, 45 seconds know for additional business in the existing customers is another major uh strategy that we obviously have going 37:53 37 minutes, 53 seconds beyond the existing customers is where we are looking at new customers. new customers or both in existing geographies and in New York geographies. 38:02 38 minutes, 2 seconds You know, we are expanding into New York geographies via partnerships as well as having our own increased sales presence 38:08 38 minutes, 8 seconds in our existing markets. So, all these would definitely add better uh you know uh revenues to the top line. Added to 38:18 38 minutes, 18 seconds the topline growth, it's it's alone uh would not make the company grow across the board. So we are looking at 38:25 38 minutes, 25 seconds additional product lines as well. We are strongly looking at AI into the products and I think I think we should speak more 38:34 38 minutes, 34 seconds about what kind of products that we have been looking at particularly in the AI front. Uh you know uh in the traditional 38:42 38 minutes, 42 seconds uh assessment business you what comes to your mind is an online examination that happens on the screen right uh but an 38:49 38 minutes, 49 seconds assessment is even broader. For instance, skills examinations is another area where uh the world is moving 38:56 38 minutes, 56 seconds towards digital transformation. Uh as mentioned earlier, VTCT vocational training charitable trust is one of the 39:03 39 minutes, 3 seconds customers whom we have won who are a vocational training that is skills assessments body. So um you know hard 39:10 39 minutes, 10 seconds skills like plumbing, carpentry and you know uh masonry these kind of hard skills are also to be assessed 39:18 39 minutes, 18 seconds particularly in those geographies those markets where they give a lot of impetus importance to skills certification and 39:25 39 minutes, 25 seconds skills assessment. Uh there is a huge potential for implementing online digital platforms for skills assessments. We have we are moving in 39:34 39 minutes, 34 seconds that direction. you already have customers uh to testify the ability to deliver. The another area is the handwritten exams. Yes, handwritten 39:43 39 minutes, 43 seconds exams even world over today even today most exams are handwritten right. So 39:49 39 minutes, 49 seconds paper and pencil case. So u if if you have a an answer script where you have 39:56 39 minutes, 56 seconds uh uh answers written how do you mark it? That is what Mr. Sudan mentioned earlier and this is typically called as 40:03 40 minutes, 3 seconds an e-marking platform where we are using AI uh to bring in uh a a a sort of a a 40:11 40 minutes, 11 seconds process where you use uh two different AI pipelines where you extract the handwritten text make it machine readable and use AI for marking as well. 40:22 40 minutes, 22 seconds So in addition uh to the known new products we also uh would want to mention that we have an innovation lab 40:31 40 minutes, 31 seconds you know we have uh the new products coming out of that innovation and R&D lab uh where the a team of engineers 40:40 40 minutes, 40 seconds quite a healthy team of engineers 65 65 people constantly look at how uh 40:46 40 minutes, 46 seconds newer technologies like AI quantum and others can uh impact our products. So we 40:53 40 minutes, 53 seconds are cons consistently improving those products. You want to add on that? Yeah, we have developed new products uh uh 41:03 41 minutes, 3 seconds which will be uh rolled out uh uh next month uh six new products in broadly the 41:11 41 minutes, 11 seconds area of assessments driven by technology uh using uh AI and uh uh computing uh 41:20 41 minutes, 20 seconds quantum computing as uh Prashant mentioned and uh we will announce these uh we will launch officially these 41:29 41 minutes, 29 seconds six products which have been the output of our innovation uh group. 41:40 41 minutes, 40 seconds Hello sir, I have one more question. Yes. Yes, please go ahead. 41:44 41 minutes, 44 seconds Uh sir, can we expect 25 to 30% of CAGR growth over next 3 to 5 years along with margin expansion? 41:53 41 minutes, 53 seconds Uh ma'am we are we have decided not to give the give any guidance as yet. uh the moment we uh decide that we will 42:00 42 minutes provide guidance. we will be able to quantify and mention. Um but you know I would like to still talk about our prior 42:08 42 minutes, 8 seconds year performances. We have consistently grown over the past several years and particularly in in the last two years our strategies that we have come up with 42:17 42 minutes, 17 seconds like what I mentioned in the notes also uh the strategies that we have had one grow consistently on our services as 42:24 42 minutes, 24 seconds well as put a lot of impetus efforts on the product lines particularly like the new products that we are mentioning and 42:31 42 minutes, 31 seconds all of that. uh so the growth uh that we have seen in the last one year uh is definitely something that will outpass 42:39 42 minutes, 39 seconds in the future years. That much is what I can talk to you about. We'll not be able to provide a number. 42:45 42 minutes, 45 seconds Okay sir. Thank you so much and all the very best. Thank you very much. Thank you ma'am. 42:50 42 minutes, 50 seconds Thank you. A reminder to all participants. Anyone who wishes to ask a question may press star N1. 42:58 42 minutes, 58 seconds The next question is from the line of Pulawarti Saiiran from Pulawarti Advisor. Go ahead. 43:05 43 minutes, 5 seconds Hi, thanks a lot for taking my question. Am I audible sir? Yes, you are sir. 43:11 43 minutes, 11 seconds Yeah, sir. Just one quick question is that you mentioned multiple times uh that artificial intelligence is something used in your business. If you 43:19 43 minutes, 19 seconds can just elaborate in terms of your capabilities regarding the same and how it helps you uh in getting more business and then how it differentiates from your competitors that will be really helpful. 43:31 43 minutes, 31 seconds Um sir uh firstly uh the uh entire uh 43:38 43 minutes, 38 seconds workflow of uh uh building and delivering exams benefits significantly 43:46 43 minutes, 46 seconds from uh uh native integration of AI. I will take one example sir. uh if uh we 43:55 43 minutes, 55 seconds were to look at an Indian example of uh uh J or uh uh UPSC coaching centers. I'm 44:05 44 minutes, 5 seconds taking an Indian example u even though we don't work with them yet. Um there are so many tests which 44:14 44 minutes, 14 seconds need to be compiled. There are practice tests, there are uh mock tests. Uh and 44:22 44 minutes, 22 seconds there are many such uh in one year of coaching there are many lot of testing that is done. Put together these tests 44:31 44 minutes, 31 seconds there are rules generally they want to make sure that there is no repetition from previous years. uh there is a new 44:40 44 minutes, 40 seconds approach to the the question itself and the test itself in how they are composed 44:46 44 minutes, 46 seconds from a problem-solving approach because uh every year uh it has to be uh 44:54 44 minutes, 54 seconds differently uh challenging. It has to be more challenging preferably when compared to previous year. Um to do that 45:03 45 minutes, 3 seconds manually is uh time consuming and uh uh 45:10 45 minutes, 10 seconds can also be uh uh errorprone. Uh using 45:15 45 minutes, 15 seconds AI uh you have a large question bank of let's say last 10 years it'll be more in 45:24 45 minutes, 24 seconds in in the example I'm giving you. uh in fact in with other customers we are working with in US and UK there have a 45:33 45 minutes, 33 seconds very large question bank and test banks of what has been delivered over the last 20 years. We use that and apply AI 45:43 45 minutes, 43 seconds models to make sure that the new set of tests, a new set of questions which are 45:51 45 minutes, 51 seconds generated uh are actually different and test slightly test the problem solving skills 46:00 46 minutes from a different way. They can even change the question type. For example, if there was a district descriptive 46:08 46 minutes, 8 seconds question, uh AI can break it down into multiple objective type of questions. So just on the item authoring side, it gives them a lot of flexibility. 46:19 46 minutes, 19 seconds And then the entire workflow is just not item authoring, it's about managing the item repository, the question repository. It's about composing tests. 46:31 46 minutes, 31 seconds uh composing test also requires a lot of manual effort. Uh AI is a good 46:38 46 minutes, 38 seconds scaffolding there to make sure that some of their fundamental rules of how they 46:44 46 minutes, 44 seconds compose test is assisted by AI and then there is big delivery AI. Uh so in each 46:53 46 minutes, 53 seconds one of uh uh the stages of workflow workflow AI comes in very handy to make 47:01 47 minutes, 1 second sure that repetition is not there, errors are not there in the exams that 47:08 47 minutes, 8 seconds are delivered and the ability to analyze outcomes of these tests is smart and 47:16 47 minutes, 16 seconds high. So AI makes an impact on the entire workflow of uh uh our product uh offering. Pranaman, do you want to add? 47:28 47 minutes, 28 seconds Yeah, of course. There are many other areas also including the e-arketing that you described earlier where AI plays a significant role. uh 47:38 47 minutes, 38 seconds traditionally uh if you look at the LL available in the market and try to use that for example to extract the 47:45 47 minutes, 45 seconds handwritten text right so it typically would be a 65 to 70% accuracy is what we have known uh we have delivered a 98.6% 47:55 47 minutes, 55 seconds 6% accuracy on the AI based extraction of handwritten text. How was that possible is because of the ability to 48:03 48 minutes, 3 seconds use multiple LLMs on our own hardware and adding the right kind of weights for different models uh which are good in 48:11 48 minutes, 11 seconds one thing or the other you know some for the image processing some for you know text and things like that by using a 48:19 48 minutes, 19 seconds right combination of different LLMs we were able to you know get a 98.6 six which is very very unpre unprecedented 48:28 48 minutes, 28 seconds kind of a accuracy in the handwritten text extraction. So such such uh you know uh implementation such use cases uh 48:37 48 minutes, 37 seconds are across the board. For example, we use AI in the proctoring area where you have uh you know a an individual student 48:45 48 minutes, 45 seconds attending an exam sitting somewhere else and there is uh he's watched over uh by uh a set of AI tools helping an 48:54 48 minutes, 54 seconds individual human proctor or human invigilator sitting somewhere somewhere else right so such such enablements are 49:02 49 minutes, 2 seconds possible via AI there are more than seven 18 different use cases that we 49:09 49 minutes, 9 seconds have already uh we worked on and several more in the other side. Sir, 49:16 49 minutes, 16 seconds uh there is one more uh use case which is being talked about uh um uh uh quite 49:25 49 minutes, 25 seconds a lot these days which is anti-cheing uh software. Um how do you prevent 49:33 49 minutes, 33 seconds cheating in exams even though it is online and uh how do you detect and how 49:40 49 minutes, 40 seconds do you make sure that it becomes foolproof AI based proctoring uh 49:47 49 minutes, 47 seconds products or uh the solution we were one of the early movers and we are seeing 49:54 49 minutes, 54 seconds increased adaptation of our AI based proing software for various uh high 50:02 50 minutes, 2 seconds stakes exams uh around the world. That is uh another thing I wanted to add. The last thing sir for your question um why 50:12 50 minutes, 12 seconds AI has become fashionable and uh obviously uh benefits are being seen. 50:20 50 minutes, 20 seconds There is competition. lot of players uh in the IT field are embracing AI uh in 50:29 50 minutes, 29 seconds different ways. Uh IT services would use it in a certain way and uh in some ways 50:37 50 minutes, 37 seconds we've seen recent reports even from yesterday that IT services segment faces 50:44 50 minutes, 44 seconds uh headwinds due to AI. In our case uh because the products are AI native 50:54 50 minutes, 54 seconds uh it delivers all the benefits but we don't face uh headwinds because there is 51:01 51 minutes, 1 second a significant benefit and value proposition that gets passed on to our customers. So yes there is competition. 51:09 51 minutes, 9 seconds Yes we have to watch out for competition. India our team uh who attend all the relevant 51:17 51 minutes, 17 seconds conferences give us an analysis of competition. Um we have to work hard to 51:25 51 minutes, 25 seconds stay ahead of competition all the time and hence our team uh of research and 51:32 51 minutes, 32 seconds innovation. uh we have a market uh intelligence team which is feeding into the research innovation team and uh we 51:40 51 minutes, 40 seconds are able to use that as an input to improvise and innovate. 51:47 51 minutes, 47 seconds Great. That is really helpful. And s just one question in your opening remarks, one of the first pillars you mentioned that you had uh trying to 51:56 51 minutes, 56 seconds expand and the penetrating deeper into your core market by spending what I can say getting people on the ground on the marketing side. If you can just 52:04 52 minutes, 4 seconds elaborate a little further what are the initiatives which you have taken in the last maybe two three quarters or maybe recently that will be really helpful. 52:12 52 minutes, 12 seconds Right. Uh traditionally we have had uh a very lean sales team in the geographies. 52:18 52 minutes, 18 seconds Uh we would operate primarily from India but have a very few people in the USA for instance in the UK. We want to 52:25 52 minutes, 25 seconds expand that our presence direct presence in those markets uh primarily to provide the sales frontline sales efforts as 52:34 52 minutes, 34 seconds well as uh you know proximity to the customer. Yeah, when when you are closer to the customer, you can do better uh 52:41 52 minutes, 41 seconds account management, you can win more projects, you can mine better and all of those happen. So that is with that intent we are expanding. We already have 52:50 52 minutes, 50 seconds uh uh you know given the mandate to manpower consultants and our own efforts as well. We have been successful in 52:56 52 minutes, 56 seconds adding uh uh a few people already in the US in Middle East uh and we have many 53:03 53 minutes, 3 seconds more Singapore uh adding you know into the sales force. They are all in the various stages of the pipeline of hiring. 53:12 53 minutes, 12 seconds So and one uh nuance in this approach sir is uh um we uh we have hired 53:20 53 minutes, 20 seconds consultants in each of these geographies. 53:23 53 minutes, 23 seconds consultants who have worked earlier with uh uh our clients but have 53:30 53 minutes, 30 seconds retired or moved on to some other company and now have become uh independent consultants. They have a 53:39 53 minutes, 39 seconds network in these uh countries. For instance, we have a consultant consultants in the US uh one for 53:48 53 minutes, 48 seconds government business, the other one for the publishing business. Both were part of those systems retired or moved on to 53:58 53 minutes, 58 seconds other companies which doesn't conflict with what we do or what they were doing with earlier companies but are have a 54:06 54 minutes, 6 seconds great network. A sales team around the consultant is helping us a lot because the consultants are able to give us new 54:15 54 minutes, 15 seconds leads um which the sales team is going after. So that model is working well for 54:21 54 minutes, 21 seconds us. uh in the US and in the UK sir um they are senior people they are seen as thought leaders in the industry. 54:31 54 minutes, 31 seconds Got it. Just last few data keeping questions sir. First the IPO expenses are taken to the P&L this quarter considering IPO happened in November. 54:41 54 minutes, 41 seconds Uh no sir IPO expenses have not been considered to the P&L. It's a share premium. 54:46 54 minutes, 46 seconds Yeah it goes into the share premium account. It goes into the S premium account. 54:50 54 minutes, 50 seconds Although there was a small bit small bit 70 lakh about 70 lakhs which couldn't be class 54:56 54 minutes, 56 seconds yeah right yeah around 70 lakhs which was spent okay there's no before this uh filing DRP all those stages okay advised 55:05 55 minutes, 5 seconds by the consultant and PRLM not to so as uh IPO expenses and not to adjust against the S premium which only it is 55:14 55 minutes, 14 seconds taken to the P&L directly it is already done in this portal itself and December and December and 250 crores 55:23 55 minutes, 23 seconds was your cash flow as of sorry cash on books as of September and 180 crores new cash you have taken into the what I can 55:30 55 minutes, 30 seconds say uh uh uh in the IPO and out of that you have spent 30 crores for the land and the rest of the 150 crores is yet to be spent for upgrading your 55:38 55 minutes, 38 seconds infrastructure and is my understanding right or is there any change over there sir out of the 180 just a small uh 55:46 55 minutes, 46 seconds correction not all the 180 is available because that would be net of IPO expenses. So um okay what you said is correct. 55:55 55 minutes, 55 seconds Yeah understood and that's and and the upgrade of infrastructure is already happening or is it still working the 56:02 56 minutes, 2 seconds progress or what is the stages of interrupted? 56:09 56 minutes, 9 seconds Sorry sir I missed it. Sorry what you said sir. I said it would be implemented over a period of 2 years as you rejoin. 56:19 56 minutes, 19 seconds Thanks. Thank you very much. Thank you. 56:22 56 minutes, 22 seconds We've identified some of the more more modern um clouded GI devices. Uh so 56:31 56 minutes, 31 seconds we going from outside in and uh we've already uh identified vendors and placed orders. So we we will actually start 56:40 56 minutes, 40 seconds from the edge of our network in implementing AI and buying AI devices and tools and work inwards to every single person's laptop. 56:53 56 minutes, 53 seconds Thank you. The next question is from the line of Rohan Ma and individual investor. Please go ahead. 57:06 57 minutes, 6 seconds As there is no response, I'm taking the next question from the line of Mayures from Invest Pour. Please go ahead. 57:37 57 minutes, 37 seconds We're not able to hear anything. 57:40 57 minutes, 40 seconds Uh I to all participants. Anyone who wishes 57:48 57 minutes, 48 seconds to ask a question may press star and one on their touchstone telephone. 57:52 57 minutes, 52 seconds The next question is from the line of Sarang from Corsa Park Advisor. Please go ahead. 57:59 57 minutes, 59 seconds Hi, good morning sir. Thank you for the opportunity. So are we already seeing productivity gains from uh deploying AI 58:06 58 minutes, 6 seconds and is this leading to repricing of existing contracts with the customers or are we absorbing all the monetary 58:13 58 minutes, 13 seconds benefits productivity increase? Are they absorbing all the monkey benefits 58:21 58 minutes, 21 seconds process or passing it on to the uh benefits? 58:26 58 minutes, 26 seconds Yeah. Uh sir partly uh passing it on to 58:32 58 minutes, 32 seconds uh the clients uh but uh largely uh absorbing it uh ourselves. The approach 58:41 58 minutes, 41 seconds has been uh that uh the tools that we use already for uh developing and 58:50 58 minutes, 50 seconds deploying for customers get benefited from the new AI models and 58:56 58 minutes, 56 seconds new AI tools. So it's not as though the core uh tools that we use we stop using 59:05 59 minutes, 5 seconds and everything we you is used to deliver to customers is AI. It'll take some time 59:11 59 minutes, 11 seconds as AI is evolving as we are finding out new uh things about uh AI uh new models 59:19 59 minutes, 19 seconds coming up uh some ethical considerations etc. We have uh carefully calibrated our 59:26 59 minutes, 26 seconds approach of how much of AI and how we will implement it in our products and how much of risk appetite for AI does a 59:35 59 minutes, 35 seconds customer have. Each customers have different kinds different risk appetites. Some customers are very 59:43 59 minutes, 43 seconds aggressive on uh using AI. Some customers are still worried about ethical considerations and risks of 59:50 59 minutes, 50 seconds using that. So it's a balanced approach we have to take sir from customer to customer. uh as far as we are concerned 59:58 59 minutes, 58 seconds we are capable of uh uh retrofitting uh AI and using uh all AI models mixed mode 1:00:07 1 hour, 7 seconds models which Prashant explained uh and we are happy to pass on the benefit to 1:00:13 1 hour, 13 seconds the customer definitely it'll benefit us for sure uh because the process of uh 1:00:22 1 hour, 22 seconds from requirements gathering to deployment uh in the company is uh a lot of these 1:00:29 1 hour, 29 seconds steps are AI driven uh for instance test cases test cases construction the QA all 1:00:39 1 hour, 39 seconds of it is AIdriven that is internal so we made a choice on how we will use it as 1:00:45 1 hour, 45 seconds far as customers are concerned they will pick and choose what parts of uh the 1:00:52 1 hour, 52 seconds platform that we provide them should be I enabled and what need not be I enabled. So it's at this point decides case to guess. 1:01:02 1 hour, 1 minute, 2 seconds Yeah. Okay. Uh secondly, what would be the R&D expense for this quarter and 9 months and how much would we have 1:01:09 1 hour, 1 minute, 9 seconds expensed and how much would we have capitalized for the same? 1:01:14 1 hour, 1 minute, 14 seconds Exactly. We you know uh we have our product development expenses 2.7 cr okay 1:01:22 1 hour, 1 minute, 22 seconds uh R&D expenses. Okay. Know right now we don't have the number. uh we will let you know that exactly. 1:01:29 1 hour, 1 minute, 29 seconds Sure. Okay. So and lastly uh the the professional legal fees that you had called out to the extent of 2.9 cr since 1:01:38 1 hour, 1 minute, 38 seconds we have not yet announced any acquisition yet right uh could could this expense continue in the near term considering the impending due diligence 1:01:47 1 hour, 1 minute, 47 seconds on the UK company. Uh and also I believe that last year we had done a bit margin upward of 40% uh in Q4. Can we expect 1:01:54 1 hour, 1 minute, 54 seconds similar margin profile this year sir? on the uh on the expense towards 1:02:01 1 hour, 2 minutes, 1 second the u uh the acquisition right so there are two uh parts that I mentioned one is on the diligence due diligence the other 1:02:09 1 hour, 2 minutes, 9 seconds was the retainership and the retainership has already stopped so there won't be any retainership in Q4 for the for the investment bank right so 1:02:18 1 hour, 2 minutes, 18 seconds uh to that extent it would be reduced and the due diligence of the u uh the other targets that we are talking about 1:02:25 1 hour, 2 minutes, 25 seconds is an internal due diligence being done Now it's our own people diligence on the tech and the customer diligence that is 1:02:32 1 hour, 2 minutes, 32 seconds being done. There is no outgo uh you know fees towards those two digences. 1:02:37 1 hour, 2 minutes, 37 seconds When we are ready for the financial and legal diligence is when we will uh we may occur uh incur expenses uh which we 1:02:45 1 hour, 2 minutes, 45 seconds are not sure whether will be the current quarter. Uh so that way the the margins in quarter 4 will not be straight. 1:02:56 1 hour, 2 minutes, 56 seconds Sure. got uh so on the legal and professional fees I got it and the aa margin for Q4 which was 40% last year 1:03:05 1 hour, 3 minutes, 5 seconds can we maintain that considering the mix wouldn't change much s it is not uh different from not only last year but it 1:03:13 1 hour, 3 minutes, 13 seconds has been a trend the evita margins in the last quarter is always uh the highest highest that's driven by the 1:03:20 1 hour, 3 minutes, 20 seconds highest revenue in the quarter as well so that trend I don't see a reason why the trend should Got it. Thank you and all yours. 1:03:30 1 hour, 3 minutes, 30 seconds Thank you. 1:03:32 1 hour, 3 minutes, 32 seconds Thank you. Due to time constraints, that was the last question for today. I now hand the conference over to Mr. Dhanj Sadhana, chairman and managing director. 1:03:41 1 hour, 3 minutes, 41 seconds Over to you, sir. 1:03:47 1 hour, 3 minutes, 47 seconds Um, thank you. Uh, this is uh Danjma. As we close our earnings call, I would like to reflect on the journey ahead. 1:03:57 1 hour, 3 minutes, 57 seconds Excelloft stands on a strong foundation built over more than two decades uh with our expanding global presence, 1:04:07 1 hour, 4 minutes, 7 seconds strengthened product capabilities and strategic partnerships with other organizations particularly in other 1:04:15 1 hour, 4 minutes, 15 seconds geographical territories uh and with organizations like AQA and BTCP which are very large which have large footprints in their uh own areas. 1:04:27 1 hour, 4 minutes, 27 seconds as uh of uh qualifications and uh vocational training. We are uniquely positioned to lead the transformation of 1:04:35 1 hour, 4 minutes, 35 seconds uh digital assessment and learning. The industry is undergoing a fundamental shift towards secure 1:04:44 1 hour, 4 minutes, 44 seconds um scalable and AI enhanced platforms and Exceloft 1:04:50 1 hour, 4 minutes, 50 seconds is deeply aligned with these long-term trends. As uh we have explained earlier, 1:04:58 1 hour, 4 minutes, 58 seconds our focus will continue to be on responsible innovation, strengthening our talent pool, 1:05:06 1 hour, 5 minutes, 6 seconds uh deepening client relationships, and uh strengthening new sales uh in 1:05:14 1 hour, 5 minutes, 14 seconds each one of these territories. Executing with excellence across our businesses. 1:05:20 1 hour, 5 minutes, 20 seconds um minimizing uh uh uh any customer problems in the field or customer 1:05:29 1 hour, 5 minutes, 29 seconds escalations which we have minimized uh now we remain committed to building sustainable long-term value for all 1:05:38 1 hour, 5 minutes, 38 seconds stakeholders um our shareholders most importantly um our employees our customers our 1:05:47 1 hour, 5 minutes, 47 seconds partners um and the community we operate in I is they are also stakeholders and uh it's 1:05:56 1 hour, 5 minutes, 56 seconds very important for us to leave a sustainable long-term value for all these stakeholders 1:06:04 1 hour, 6 minutes, 4 seconds and I thank you once again for joining us and we look forward to interacting with you regularly in the quarters 1:06:13 1 hour, 6 minutes, 13 seconds ahead. These sessions help us a lot. The questions that come uh help us 1:06:19 1 hour, 6 minutes, 19 seconds introspect, help us improve on uh what we are doing, help us identify gaps in 1:06:27 1 hour, 6 minutes, 27 seconds what we may not be doing and hence uh this uh this session and other sessions 1:06:35 1 hour, 6 minutes, 35 seconds I'm sure will be very valuable to our business to grow the business in a sustainable manner and in a profitable 1:06:43 1 hour, 6 minutes, 43 seconds manner. So thank you all. uh very much and have a good day. Thank you. Thank you very sir. 1:06:51 1 hour, 6 minutes, 51 seconds Thank you on behalf of Excel Technologies Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines.