Firstsource Solutions Ltd — Q4 FY26

Firstsource Solutions Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=pGBI37AFDBI Published: 7 days ago

0:04 4 seconds Ladies and gentlemen, good day and welcome to Foro Solutions Limited Q4 FI26 earnings conference call. As a 0:13 13 seconds reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:21 21 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:28 28 seconds your touchtone phone. Please note that this conference is being recorded. On this call, we have Mr. Reteshadani, MD 0:35 35 seconds and CEO and Mr. Desh Jane, CFO to provide an overview on company's performance followed by Q&A. Please note 0:43 43 seconds that some of the matters that we'll discuss on this call including the company's business outlook are forward-looking and as such are subject 0:51 51 seconds to known and unknown risk. These uncertainties and risks are included but not limited to what company has mentioned in its prospectus file with 0:59 59 seconds savvy and subsequent annual report that are available on its website. And now the conference to Mr. Reeshadani thank you and over to you sir. 1:09 1 minute, 9 seconds Thank you. Uh hello everybody. Good morning, good afternoon and good evening depending on where you are. Thank you for joining us today to discuss our 1:17 1 minute, 17 seconds financial results for the fourth quarter and full year of FY26. 1:23 1 minute, 23 seconds This year is especially meaningful as First Source crossed a billion dollars in revenue, 1:30 1 minute, 30 seconds enters its 25th year, having started with answering answering calls and delivering service at scale and now 1:38 1 minute, 38 seconds evolving into becoming a global intelligence partner that brings together deep domain expertise with 1:45 1 minute, 45 seconds agent first AI enabled operations to help clients make better decisions and drive measurable outcomes. 1:54 1 minute, 54 seconds We believe that this evolution is creating a compounding advantage and sets us up strongly for the next chapter. 2:03 2 minutes, 3 seconds I would like to thank each one of our 36,205 person sourcers around the world for 2:10 2 minutes, 10 seconds their relentless commitment to delivering value to our clients. 2:15 2 minutes, 15 seconds Let me start with the discussion on our Q4 performance. 2:20 2 minutes, 20 seconds Q4 marks the eighth straight quarter of double-digit year-on-year revenue growth. Our revenue grew by 19.5% 2:28 2 minutes, 28 seconds year-on-year and came in at rupees 25.8 billion. In US dollar terms, the growth 2:35 2 minutes, 35 seconds was 13.2% yearonear and 3.2% quarteron quarter to US 283 million. In constant 2:43 2 minutes, 43 seconds currency terms, our revenue grew 11.6% year-on-year and 3% quarteron quarter. 2:48 2 minutes, 48 seconds These numbers are inclusive of the telemetic acquisition which we integrated during the quarter and that contributed 1.3% to our year-on-year 2:57 2 minutes, 57 seconds growth in constant currency terms. EBIT margin for the quarter was 12.2% up 100 basis points and 30 basis points 3:06 3 minutes, 6 seconds on a yearon-year and quarteron quarter respectively. It's also the sixth straight quarter of margin expansion. 3:13 3 minutes, 13 seconds Our net profit was rupees 2.1 billion and the diluted EPS for the quarter were was rupees 2.91. 3:21 3 minutes, 21 seconds For the full year, our revenues came in at rupees 95.6 billion which grew by 19.7% in rupee terms and 14.6% in dollar 3:31 3 minutes, 31 seconds terms. Our constant currency revenue growth was 13.6%. Our EBIT margin for FI26 was 11.7% within our guided range of 11.5 to 12%. 3:44 3 minutes, 44 seconds Our PAT for FI26 stood at rupees 6.7 billion, a growth of 13.5% over last year on a reported 3:52 3 minutes, 52 seconds basis. Coming to the business highlights, let me start with our deal wins and other client related metrics. In Q4, we 4:02 4 minutes, 2 seconds signed four large deals. As you're aware, we consider a deal with ACV of over US $5 million as a large deal. 4:12 4 minutes, 12 seconds Overall, we won 17 large deals in FI26. Our ACV intake for FI26 remains healthy. 4:19 4 minutes, 19 seconds I am encouraged by the strength of our wins both in number and scale. This reflects our ability to bring together 4:26 4 minutes, 26 seconds deep industry and functional expertise, a strong technology ecosystem partnership, and an AI first automation 4:34 4 minutes, 34 seconds approach that's delivering clear and tangible outcomes for our clients, better customer experience, faster decisioning, and a lower cost to serve. 4:44 4 minutes, 44 seconds For instance, we won business from a leading pension and benefits administrator on a multi-year digital 4:52 4 minutes, 52 seconds transformation starting with the front office modernization to improve customer experience and agent productivity and then expanding into the back office to 5:01 5 minutes, 1 second drive operational efficiency and scalability. The program is building a connected intelligent operating model 5:08 5 minutes, 8 seconds enabled through deep domain-led transformation, systems integration, and agentic operations. What's different this year is the nature of our demand. 5:17 5 minutes, 17 seconds Clients aren't just running efficiency programs. They're redesigning their operating models for AI, combining data 5:25 5 minutes, 25 seconds modernization, cloud workflow orchestration, and AI to move from manual execution to assisted and 5:33 5 minutes, 33 seconds increasingly automated operations. We're also seeing more programs shift from pilots to scaled rollouts with 5:40 5 minutes, 40 seconds governance, security, and ROI measurement built in. 5:45 5 minutes, 45 seconds I would like to emphasize that several of our wins are transformative and ramp up in phases unlike traditional 5:53 5 minutes, 53 seconds steadystate work. So while they strengthen long-term growth visibility, revenue conversion is typically spread over a longer period as transformation and enablement milestones are completed. 6:05 6 minutes, 5 seconds Let me now highlight a few other notable wins during Q4. We won a large deal from a global leader in financial technology 6:13 6 minutes, 13 seconds solutions in the US to redesign and transform their customer experience. In Australia, we won a large engagement 6:21 6 minutes, 21 seconds with a leading regional water utility service to help them across their value chain. We secured additional business and were chosen as the global operations 6:30 6 minutes, 30 seconds outsourcing partner by a leading UK- based MBNO to manage their entire account servicing, billing and customer 6:38 6 minutes, 38 seconds support across multiple markets globally. We won business also from a premium UK retail brand for customer 6:45 6 minutes, 45 seconds experience. And finally, we expanded our relationship with one of the leading mortgage lenders and services in the US across their entire value chain. 6:55 6 minutes, 55 seconds During the quarter, we added 11 new logos, which includes six strategic logos. 7:01 7 minutes, 1 second As you're aware, we define a strategic logo as one where we see the potential of at least $5 million in annual 7:08 7 minutes, 8 seconds revenue. And we run a structured program to handhold and monitor such relationships to grow them at an accelerated pace. In FI26, 7:18 7 minutes, 18 seconds we added 47 new clients, including 24 strategic clients, doubling our strategic additions compared to FI25. 7:27 7 minutes, 27 seconds In fact, over the past eight quarters, we have converted around 50% of these strategic wins into relationships exceeding $5 million in annual revenue. 7:38 7 minutes, 38 seconds With that, let me now turn to the vertical commentary. 7:42 7 minutes, 42 seconds Let me start with banking and financial services. In Q4 of FI26, our our BFS vertical grew 9% yearonear and 5% sequentially in constant currency terms. 7:54 7 minutes, 54 seconds We added six new logos during the quarter. 7:57 7 minutes, 57 seconds Demand remains centered on regulatory compliance, financial and economic crimes, customer experience and cost efficiency. And we are seeing strong 8:06 8 minutes, 6 seconds pull for our AI and automationled outcome oriented transformation offerings across risk controls and 8:14 8 minutes, 14 seconds operations both across the front office and back office. On execution I would highlight two updates. 8:22 8 minutes, 22 seconds First, as you may recall in Q2, we had announced a large collections deal in the UK with one of our long-standing 8:28 8 minutes, 28 seconds clients. Given the regulated regulated nature of this deal, it required approvals from the regulatory 8:35 8 minutes, 35 seconds authorities in the UK which we earlier anticipated to get in early early Q4. 8:41 8 minutes, 41 seconds However, that process took time and we have now received the approvals and the operations are also up and running as we speak. 8:51 8 minutes, 51 seconds Second, a leading US payment and financial services institution is partnering with us to modernize their 8:58 8 minutes, 58 seconds operations on the collection side across first party, third party and legal using our digital platform. This embeds 25 9:05 9 minutes, 5 seconds plus years of deep domain expertise with a built-in compliance and risk hardness and is model agnostic across AI partners so that the client does not carry the technology risk. This is not a chatbot. 9:17 9 minutes, 17 seconds It's a governed autonomous collector with outcome accountability through a platform fee plus per interaction pricing where higher value per 9:25 9 minutes, 25 seconds interaction can drive greater volume allocation supporting a K-shaped growth dynamic within financial services. 9:35 9 minutes, 35 seconds We've also seen significant growth across the midsize banks and fintexs as they look to modernize platforms and 9:42 9 minutes, 42 seconds embed AI across onboarding, servicing and collections. We're also partnering more closely with with these clients as 9:50 9 minutes, 50 seconds they accelerate platform modernization, embed AI across their customer journeys, and enhance their digital experience. 9:57 9 minutes, 57 seconds Our Q4 exit deal pipeline in financial services was amongst the strongest in recent quarters, giving us confidence in 10:04 10 minutes, 4 seconds sustaining growth momentum in this vertical. 10:08 10 minutes, 8 seconds In healthcare, revenues grew 16% year-on-year and 10% sequentially in constant currency terms. We added one 10:15 10 minutes, 15 seconds new logo during the quarter. Healthcare continues to be a core growth pillar and a key area of strategic differentiation 10:22 10 minutes, 22 seconds for first source with a well diversified presence across both the provider and the payer segments that give us an end-to-end view of the healthcare value 10:31 10 minutes, 31 seconds chain. As we highlighted last quarter, we strengthened our operating model with dedicated segment focused leadership and 10:39 10 minutes, 39 seconds improved portfolio quality through targeted rationalization actions. In Q4, both payer and provider performance remained resilient. On the payer side, 10:48 10 minutes, 48 seconds we saw some short-term timing shifts as Medicare Advantage plans recalibrated select program rollouts in a tighter 10:56 10 minutes, 56 seconds regulatory environment, primarily with rates remaining flat. But this was more about pacing than demand. And the focus 11:03 11 minutes, 3 seconds on measurable outcomeled efficiency programs remains intact. On the provider side, we continue to scale the right opportunities with a deliberate 11:11 11 minutes, 11 seconds technology first approach, bringing together access, integrity, and denials into a metric-led operating model while 11:20 11 minutes, 20 seconds taking on the ongoing technology refresh burden so health systems can stay current without repeated replatforming 11:28 11 minutes, 28 seconds supporting sustained momentum and medium-term margin expansion. Coming to the CMT vertical, revenues grew 3% 11:35 11 minutes, 35 seconds year-on-year but degrew 4% on a quarter-on-quarter basis. We had a soft quarter year in Q4 largely driven by the 11:43 11 minutes, 43 seconds inherent volatility in this segment, particularly the timing of work packets and program transitions in large 11:50 11 minutes, 50 seconds consumer tech engagements. That said, the underlying demand drivers here continue to remain intact, particularly as the consumer tech companies continue 11:59 11 minutes, 59 seconds to enhance and increase their capex spend. And we think we can end up being beneficiaries of the same. We continue to see strong client interest in AI 12:08 12 minutes, 8 seconds enablement and non-traditional techled solutions particularly around the AI training data side that support the 12:15 12 minutes, 15 seconds integration of the same into their product ecosystems. And we're exiting the quarter with a well- balanced pipeline across telecom, edtech, media, 12:23 12 minutes, 23 seconds and technology clients, which gives us confidence in a return to a healthier growth trajectory as transitions 12:30 12 minutes, 30 seconds complete and volumes normalize. Lastly, coming to our diverse portfolio that grew 23% year-onear, but degrrew 8% 12:38 12 minutes, 38 seconds quarteron quarter in constant currency terms. We added four new logos during the quarter. Q4 performance reflected a 12:46 12 minutes, 46 seconds dip in retail following the seasonal peak in Q3. However, we added two Q two key household retail clients in Q4 12:55 12 minutes, 55 seconds amongst our client portfolio. In utilities, we continue to see steady underlying demand supported by a healthy pipeline and we remain optimistic on conversion over the coming quarters. 13:06 13 minutes, 6 seconds One of our acquisitions passed due credit. We continue to strengthen our position in the UK utilities ecosystem and this also enhances our cross-ell 13:15 13 minutes, 15 seconds opportunities across customer operations and collections. Overall, we exited the quarter with a well-qualified and healthy deal pipeline across both 13:24 13 minutes, 24 seconds utilities and retail, giving us confidence in improved momentum as seasonal effects normalize and new events ramp up. Let me now turn to the 13:33 13 minutes, 33 seconds geographical commentary itself. From a geography standpoint, North America delivered 4% sequential growth and 14% year-on-year growth in constant currency 13:41 13 minutes, 41 seconds terms. We continue to see broad-based momentum across our three core verticals in the region and expect this to sustain 13:49 13 minutes, 49 seconds over the coming quarters. In parallel, we are also incubating new growth opportunities in North America by setting up our sales presence in Canada 13:57 13 minutes, 57 seconds and by replicating capabilities where we have demonstrated strength in the UK market in the utilities and retail side and extending the same to the US. 14:06 14 minutes, 6 seconds The telemetic acquisition which we updated you on last quarter also gives us a delivery presence in Puerto Rico. A 14:13 14 minutes, 13 seconds fully US compliant lowerc cost location that we see as an advantage for both healthcare work and non-healthcare clients increasingly near shoring there. 14:23 14 minutes, 23 seconds Europe grew 4% yearonear and flat quarteronquarter in constant currency terms. We continue to deepen relationships and gain share of wallet 14:32 14 minutes, 32 seconds in the region. As we've highlighted in the past, we've seen an accelerated move towards offshore and nearshore delivery 14:39 14 minutes, 39 seconds over the past few quarters with several of our clients. While this may continue in the near term, we believe our proactive steps to make the business 14:46 14 minutes, 46 seconds more re more resilient by both broadening our geographic and vertical presence are yielding results. Also, our 14:55 14 minutes, 55 seconds pitch for transformational programs and nearshore delivery from South Africa has been resonating strongly with clients. 15:01 15 minutes, 1 second As I mentioned, we have received regulatory approval with one of our long-standing banking clients in the UK market for collections, which positions 15:09 15 minutes, 9 seconds us very well to expand our footprint there. Overall, we won two large deals in Q4, and our pipeline continues to build well. In fact, it's up about 60% 15:18 15 minutes, 18 seconds over the last four quarters, supporting our view of a gradually improving growth trajectory in Europe despite a soft macro environment. In Australia, we 15:27 15 minutes, 27 seconds continued to win additional business with existing clients while building a pipeline in new logos. One of the new 15:34 15 minutes, 34 seconds logos in Q4 was from this market. With that, let me turn to the people front. 15:40 15 minutes, 40 seconds On the people front, our strategy this quarter reflects the shift towards an agentic operating model where value is 15:47 15 minutes, 47 seconds defined by the intelligence we operate, not the headcount we deploy. 15:52 15 minutes, 52 seconds As that shift takes hold, we believe the right way to measure our business is no longer headcount alone. It's the value 15:58 15 minutes, 58 seconds we generate per employee. The headline is straightforward. Over the last two years, our revenue per employee has gone up by 12%. 16:07 16 minutes, 7 seconds Our revenue growth over the last two years has been materially faster than our headcount growth and we expect that 16:14 16 minutes, 14 seconds gap to widen as agentic operations scale. We closed FY26 with a headcount 16:21 16 minutes, 21 seconds of 36,25 per sources, a net increase of 1,554 employees over last year. Offshore and 16:30 16 minutes, 30 seconds nearshore hiring remained a strategic lever in FI26, accounting for close to 80% of gross additions, preserving deep domain 16:39 16 minutes, 39 seconds expertise while supporting cost and outcome economics. 16:43 16 minutes, 43 seconds Anchoring this transition is the global employee value proposition. we launched in FI26. 16:50 16 minutes, 50 seconds Brilliant people, bold tech, uncommon careers. In fact, we want to make sure that people who are currently in First 16:59 16 minutes, 59 seconds Source as well as new associates find the opportunity at First Source to do the best work of their life. A blueprint 17:07 17 minutes, 7 seconds for a truly AI first organization built on highquality talent. Technology at the core of value creation and 17:15 17 minutes, 15 seconds differentiated skill-based career pathways. That blueprint is actually already showing up in the numbers. 17:20 17 minutes, 20 seconds Attrition improved to 29.7% down almost 6 percentage points over the last eight quarters. A clear signal of rising 17:28 17 minutes, 28 seconds workforce stability. We further strengthened our people operations backbone through faster and scaled HR platforms across geographies. 17:37 17 minutes, 37 seconds Externally, we were also recognized in the corporate equality index, the workplace equality index and with the ATD best award validating the people's 17:45 17 minutes, 45 seconds side of our journey to deliver intelligence that operates. And last but not the least on the awards, recognitions and sustainability side, 17:54 17 minutes, 54 seconds Persos continues to earn strong recognition from leading industry analysts for delivering strong grant value and driving innovation through 18:02 18 minutes, 2 seconds technology-led solutions across our focus markets. During Q4, Everest Group recognized us as a leader in its 18:09 18 minutes, 9 seconds healthcare payer intelligent operations peak matrix of 2026, underscoring our ability to combine deep 18:16 18 minutes, 16 seconds domain expertise with automation and AIE execution. We were also recognized as the leader in the overall market segment of Nelson Hall's healthcare payer 18:25 18 minutes, 25 seconds agility and innovation need evaluation for 2026. 18:29 18 minutes, 29 seconds In addition, we were also named amongst the frontier firms in Microsoft's frontier firms of India and Southeast Asia, highlighting our continued 18:37 18 minutes, 37 seconds progress in building technology forward future ready solutions at scale. 18:42 18 minutes, 42 seconds ISG also featured First Source in its booming 15 list based on the annual value of commercial contracts awarded 18:49 18 minutes, 49 seconds over the last 12 months now for the sixth consecutive quarter. I'm proud to share that first source also participated this year in CDP and 18:58 18 minutes, 58 seconds Ecoadus where we were awarded with the climate and water rating of BE and supplier engagement at A. Ecois received 19:06 19 minutes, 6 seconds a bronze badge with a 70 on 100 rating where we were in the top 81st percentile. These recognitions reflect not just external validation but the 19:14 19 minutes, 14 seconds collective commitment of our teams to drive sustainable and responsible growth. I will now turn over the call to DH to give a detailed color on the 19:24 19 minutes, 24 seconds quarterly financials. I'll come back to talk about our progress on the strategic priorities as well as our outlook for FI27. Over to you Dish. 19:33 19 minutes, 33 seconds Thank you Rites and hello everyone. Let me start by taking you through our quarterly financial numbers. Revenue for 19:41 19 minutes, 41 seconds Q4 FI26 came in at rupes 25.8 billion or US 283 billion. This implies a 19:49 19 minutes, 49 seconds year-on-year growth of 19.5% in rupee term and 13.2% in dollar terms. In constant currency, this translate to year-on-year growth of 11.6%. 20:00 20 minutes We reported operating profit of rupees 3.1 billion in Q4 FI26 up 29.8% over Q4 20:08 20 minutes, 8 seconds FI25 and translate to EBIT margin of 12.2%. Up 30 bits sequency. 20:16 20 minutes, 16 seconds As ret earlier mentioned this is the six state quarter of sequential margin expansion and translate to 100 bips improvement in the last four quarters. 20:25 20 minutes, 25 seconds This is above our stated objective of 50 to 75 pips margin expansion every year. 20:31 20 minutes, 31 seconds Profit after tax came in at rupees 2.1 billion or 7.9% of the revenue for the quarter. Our profit after tax grew 27.7% 20:41 20 minutes, 41 seconds yearonear and 1.5% quarteron quarter adjusted for exceptional item in Q3 FI26 20:47 20 minutes, 47 seconds regarding the wage bills stand at 66 days in Q4 versus 67 days in Q3. 20:56 20 minutes, 56 seconds I will now turn to our annual performance of FI26. 21:00 21 minutes For fiscal year FI26, our revenue stood at rupees 95.6 6 billion or US dollar 1082 million which is 1 billion mark 21:09 21 minutes, 9 seconds over the 1 billion bar. This implies a yearon-year growth of 19.7% in the rupee term and 13.6% in constant currency 21:18 21 minutes, 18 seconds terms. Our operating profit was rupees 11.2 billion up 27.4% over FY25 and translate to a bit margin of 11.7%. 21:30 21 minutes, 30 seconds within the 11.5 to 12% range we have guided previously. 21:35 21 minutes, 35 seconds Normalized profit after tax for FY26 stood at rupees 7.6 billion. This translate to year-on-year growth of 27% 21:43 21 minutes, 43 seconds adjusted for exceptional item. Our reported PAT stood at rupees 6.7 billion. 21:50 21 minutes, 50 seconds The tax rate was 21.2% for Q4 and for FY26 the effective tax rate was 20.6% 6% 21:57 21 minutes, 57 seconds within the previously guided range of 19 to 21%. We expect to be 20 to 22% range in the FI27. 22:06 22 minutes, 6 seconds Our cash balance including investment stood at rupees 3.1 billion at the end of the Q4 FI26. 22:13 22 minutes, 13 seconds This is after the dividend payout of rupees 3.8 billion during the quarter. 22:18 22 minutes, 18 seconds Our net debt standard rupees 16.3 billion as of 31st March 2026 versus the 13.2 2 billion as of 31st March 2025. 22:29 22 minutes, 29 seconds ROC for the FY26 is 17.7% versus the 15.6% for FI25. 22:37 22 minutes, 37 seconds Our hedgebook as of 31st March 2026 was as follows. We had average 22:43 22 minutes, 43 seconds coverage of GBP 54.5 million for the next 12 months with the average rate of 117 to the pound and coverage of 107 22:52 22 minutes, 52 seconds million worth of dollars with the average rate of 91.5. 22:56 22 minutes, 56 seconds With that I will hand back to Riches to discuss strategic priorities and outlook for FI27. Ret over to you. 23:09 23 minutes, 9 seconds Thank you Dan. 23:12 23 minutes, 12 seconds Before I close, I want to spend a few minutes on something that several of you have been asking about. How to think about First Source over the next 3 to 5 23:20 23 minutes, 20 seconds years and what makes our positioning distinctive in a market that's changing very rapidly. 23:28 23 minutes, 28 seconds And why is that important? Because we believe that we are creating a category in this industry that does not yet exist. We're calling it intelligence that operates. 23:38 23 minutes, 38 seconds Let me explain the evolution. One year ago, we introduced UNBO. 23:43 23 minutes, 43 seconds It captured a real shift. Clients had moved beyond cost arbitrage and were asking for outcomes with technology doing more of the work. UNBO was the 23:52 23 minutes, 52 seconds right diagnosis for the moment and it took us a long way. But it was also about who we are not. 24:00 24 minutes We were saying that the industry itself is not dead, but the traditional ways of working in the industry were outdated. 24:07 24 minutes, 7 seconds The moment we are now is actually different. AI agents have become capable enough to execute work, not just advise 24:14 24 minutes, 14 seconds on it. The interesting question is no longer whether AI can do the task. It usually can. The harder question is 24:21 24 minutes, 21 seconds whether AI can be trusted to operate it with context with domain judgment within the policy and compliance boundaries 24:28 24 minutes, 28 seconds that real industries demand and with somebody willing to underwrite the result. That is a much narrower problem and it is the problem that we are built to solve. 24:39 24 minutes, 39 seconds Most of the market today sits in one of two camps. On one side, technology platforms that sell agents and tools but leave the operating model, the change 24:47 24 minutes, 47 seconds management and the accountability to the client or to a downstream integrator. On this other side, services firms that 24:55 24 minutes, 55 seconds bolt AI onto a labor delivery model neither bridges the gap between AI capability and operating model reality. 25:04 25 minutes, 4 seconds Intelligence that operates is that bridge. It is deep domain expertise encoded into AI that doesn't just advise 25:11 25 minutes, 11 seconds or automate. It operates end to end with accountability and gets smarter with every engagement. We design the 25:19 25 minutes, 19 seconds operating model. We build the agentic systems and we run them under one roof under one contract with our revenue tied to the outcomes we underwrite. The way we deliver this for clients is kyros. 25:32 25 minutes, 32 seconds Chyros is a Greek word between the promise and the reality and the provider who's able to bridge the gap between the 25:39 25 minutes, 39 seconds promise and the reality. A useful analogy to think about this AI agents are like surgeons. A surgeon is only as good as the operating room around them. 25:48 25 minutes, 48 seconds the instruments, the protocols, the support systems, the team. We bring the operating room. Kyros is 25 years of 25:55 25 minutes, 55 seconds domain expertise encoded as executable knowhow, governance guardrails and continuous learning loops. It turns 26:03 26 minutes, 3 seconds general purpose AIS into systems that can run regulated high stakes operations. It's portable and composable, built to run in our clients 26:12 26 minutes, 12 seconds own technology environments across whatever agents and models they choose. Why does this matter commercially? 26:19 26 minutes, 19 seconds Because the value moves. As we shift from labor price delivery to outcomes linked delivery, the unit of value stops being the seat and starts being the 26:28 26 minutes, 28 seconds result. It's also why we are increasingly comfortable underwriting outcomes in our commercial constructs and why our pipeline of transformative 26:36 26 minutes, 36 seconds vents continues to grow. Clients want a partner who will design it, build it, and run it in one single continuous 26:43 26 minutes, 43 seconds motion, not three different vendors stitched together. 26:47 26 minutes, 47 seconds Case in point, a leading US financial services institution recently launched governed AI agents to streamline their collections process with Firstource 26:56 26 minutes, 56 seconds designing, implementing, and operating their agentic operations end to end. This is the chapter we are now writing. 27:03 27 minutes, 3 seconds We believe intelligence that operates puts first source in a category of one and the long-term opportunity for our clients and our shareholders is to compound that advantage every year. 27:15 27 minutes, 15 seconds I'm pleased with the progress we are making on our agenda to leverage the current fault clients created by technology as well as the macroeconomic 27:23 27 minutes, 23 seconds shifts to broadbase our client footprint and curate new growth engines. Let me help you with a few more data points. We 27:30 27 minutes, 30 seconds closed FI26 with 150 clients with over a million dollars revenue from a run rate standpoint. An addition of 34 clients over Q4 of FI25. 27:40 27 minutes, 40 seconds During this period, our $10 million as well as our $5 million plus clients increased by 2 and 12 respectively. 27:48 27 minutes, 48 seconds Over the last eight quarters, the revenue share of top five and top 10 clients has come down by 8% and 12% respectively. Importantly, this has 27:56 27 minutes, 56 seconds happened even as our top five clients continue to grow at industry growth rate despite a significant onshore to nearshore delivery in at least a couple 28:03 28 minutes, 3 seconds of them. So, the broadbasing of growth that you see is a result of focused account management which is driving a faster growth in our non-top five top 10 28:12 28 minutes, 12 seconds accounts in many cases through large deals. We're also winning a higher number of large deals and doing so more consistently. 28:19 28 minutes, 19 seconds We now have a dedicated team to bring more focus to our efforts and ensure we are covering all the aspects that go into a large deal pursuit. This has 28:28 28 minutes, 28 seconds helped us report at least four large deals in each of the past five quarters. 28:32 28 minutes, 32 seconds Importantly, despite the strong closure, our deal pipeline has stayed above a billion dollars and in fact is at its highest ever level. Let me give you some 28:41 28 minutes, 41 seconds additional insights. We have won 17 large deals in FI26 versus 14 wins in the entire FI25 and more than double the 28:50 28 minutes, 50 seconds number of wins in FI24. Also, we added 24 strategic clients in FI26, doubling our additions compared to FI25. Not just 28:59 28 minutes, 59 seconds that, while previously our last deals almost always came from existing clients, seven of the last deals this year came from new logos versus five in FI25. 29:09 29 minutes, 9 seconds This underlines the strength of our differentiated solutions, attractiveness of our commercial construct and a growing client acceptance of us as a 29:18 29 minutes, 18 seconds disruptor. This gives me confidence that we are on the right trajectory to deliver sustainable, profitable and industry-leading growth. And with that, let me turn to our outlook for FI27. 29:30 29 minutes, 30 seconds We're entering the year with strong momentum, a healthy deal pipeline, a record large deal intake exiting FI26 and the early commercial traction of 29:38 29 minutes, 38 seconds intelligence that operates. Against that backdrop on revenue, we are guiding to constant currency growth for FI27 to be 29:45 29 minutes, 45 seconds in the 10 to 13% range and we are guiding for EBIT margin band of 12.25 to 12.75% for FI27. We believe this places 29:55 29 minutes, 55 seconds us comfortably in the top desile of growth in the industry globally. This concludes our opening remarks and we can now open the floor for questions. 30:04 30 minutes, 4 seconds Operator, over to you. 30:06 30 minutes, 6 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 30:13 30 minutes, 13 seconds star N1 on their touchtone telephone. If you wish to remove yourself from the question cube, you may press star N2. 30:22 30 minutes, 22 seconds Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 30:45 30 minutes, 45 seconds The first question is from the line of Var from Noama Equities. Please go ahead. 30:53 30 minutes, 53 seconds I saw I'm sorry to interrupt Mr. Single. Uh your voice is muffled. We are unable to hear you. 31:00 31 minutes Okay. Can you please use your handset mode? 31:12 31 minutes, 12 seconds Uh yes sir. 31:15 31 minutes, 15 seconds Yeah. Sorry. Still we are not able to hear you. 31:24 31 minutes, 24 seconds Sorry. Is it better? Please proceed. Thank you. 31:27 31 minutes, 27 seconds Yeah. Thank you. Yeah. Uh sorry for that British. Yeah. Hi, thanks for taking my question. Uh so Brites, a couple of 31:35 31 minutes, 35 seconds questions from my side. Uh one is u look if you look at the overall uh uh industry at this point of time. I think 31:42 31 minutes, 42 seconds last three four months I think we've seen uh a lot of narrative being spread uh by the uh AI model builders around 31:50 31 minutes, 50 seconds the uh basically cannibalization of revenue and the business model of system integrators uh coming into question. uh 31:58 31 minutes, 58 seconds we of course have continued to maintain that and you clarified it in a very detailed manner as to who's going to under underrite the outcome and how 32:06 32 minutes, 6 seconds specifically for the BP industry the concerns have been quite paramount that uh BP industry is at the forefront of uh this disruption uh our numbers of course 32:15 32 minutes, 15 seconds uh say the a completely different story we've had a very good growth this year we're riding for a strong growth next year now could you basically help us 32:23 32 minutes, 23 seconds understand where does the dichotomy lie I mean not just us most of the I think BTO companies are reporting good growth. 32:30 32 minutes, 30 seconds So is this growth coming despite the uh basically cannibalization of revenue 32:36 32 minutes, 36 seconds due to the genai platforms or the geni platforms which are being uh let's say implemented by the enterprise clients are not yielding the results as we've 32:45 32 minutes, 45 seconds also heard a lot of stories about very few position making past the PC stage or is it that we are gaining market share from the larger clients what is the mix 32:53 32 minutes, 53 seconds that is basically leading us to this kind of growth despite the negative narrative around Thank you. Thank you uh vibbor for that 33:02 33 minutes, 2 seconds question. Um look uh let me start by saying that uh you know we've seen this macro duality for some time right the 33:12 33 minutes, 12 seconds degree keeps shifting every few months and sometimes every every few weeks right um one thing to bear in mind is that the traditional business process 33:20 33 minutes, 20 seconds services are not as linked to discretionary spend as the traditional IT services side that's one part of it right the substantial part of the 33:27 33 minutes, 27 seconds business therefore ends up being annuity and recurring giving uh a greater 33:33 33 minutes, 33 seconds visibility if you will, right? Um what I will say is that in some sense the recent developments and the pace of 33:41 33 minutes, 41 seconds advancement on the AI side if nothing else are structurally expanding the addressable market for players such as ourselves and one of the things I talked 33:48 33 minutes, 48 seconds about is um what we have been seeing over the last few months u where we are perceived as a consulting partner who 33:56 33 minutes, 56 seconds doesn't just advise but also implements doesn't just implement but also runs and doesn't just run but also transforms. 34:04 34 minutes, 4 seconds That's the core of what intelligence that operates represents that we are able to do this in one single continuous motion and I think when we're doing that 34:11 34 minutes, 11 seconds what it does is it expands the surface area of what is available for us in terms of uh the TAM itself because we're getting called in for deals that maybe 3 34:20 34 minutes, 20 seconds years back uh if we were perceived as a deep domain BPM player in regulated markets today I think we're seeing a lot 34:27 34 minutes, 27 seconds of opportunities that cut across different u different areas itself and that expansion is surface area is certainly something that I think clients 34:36 34 minutes, 36 seconds appreciate because they want one single continuous motion towards underwriting the business outcome. So I think that's one part of it. I think the second part of it um 34:45 34 minutes, 45 seconds um is related to the opportunity to uh expand share and take share from from competitors itself and I certainly we're 34:53 34 minutes, 53 seconds seeing opportunities out there where uh you know the ability to play on offense and that has been a consistent theme 35:00 35 minutes that we've been saying now for at least ever since I've been at first that look uh when you end up having technology and macro shifts it creates a dichotomy in 35:09 35 minutes, 9 seconds terms of how different players operate Right. And and uh certainly uh challenger brands such as ourselves have 35:17 35 minutes, 17 seconds the opportunity to play on offense and uh adapt sooner and that in turn allows you to take share away from from other 35:26 35 minutes, 26 seconds players in the marketplace on the back of uh very specific value propositions uh targeted towards the industries in 35:33 35 minutes, 33 seconds which we have domain depth etc. And I think that combination is uh is certainly yielding uh results as well. 35:40 35 minutes, 40 seconds And I think third is in certain some of the markets in which we operate uh the the degree of uh insourced that might 35:48 35 minutes, 48 seconds have existed in the past people are probably willing to look at many more options and as long as you're willing to go to them with a compelling proposition and and a creative commercial construct. 35:58 35 minutes, 58 seconds I think those are certainly again allowing them to to evaluate different opportunities and maybe give us you know 36:05 36 minutes, 5 seconds a sizable part of the pie as well. So I think it's it's a combination of all these three the value proposition the share shift that we can impact and the 36:14 36 minutes, 14 seconds expansion from uh potentially what might be an insourced portfolio to a larger share of the pie. 36:20 36 minutes, 20 seconds Got it. Got it. And on the first point you mentioned about that expansion of TAM. Uh would you believe that given that we are in the initial stages of the 36:28 36 minutes, 28 seconds Genai cycle the TAM expansion also would be in initial stages and the TAM expansion will continue and perhaps maybe accelerate in the coming years. 36:38 36 minutes, 38 seconds We think the we certainly think before the opportunity exists and here's why right u I mean if you if you talk to 36:45 36 minutes, 45 seconds folks in Silicon Valley I think they will assume that everything can be automated uh overnight right and and that's what sometimes paints the 36:53 36 minutes, 53 seconds scenario that hey what does this mean for the industry and you can you've seen this with data that's reported that industry is continuing to hold its own 37:00 37 minutes certainly for some players in the market in terms of growth and so on and so forth but a lot of it is because when get into the get under the hood of 37:08 37 minutes, 8 seconds client operations particularly go to a large bank go to a large telco go to a large health plan and I'm just giving you three distinct uh sectors where 37:17 37 minutes, 17 seconds which are regulated in nature data quality is not where it needs to be so you can't just go overnight and uh 37:25 37 minutes, 25 seconds automate their operations or even have agentic uh operations run autonomously etc. So there's a significant amount of 37:33 37 minutes, 33 seconds scaffolding work that needs to happen to ensure that the that the operation is ready for prime time. The determination 37:39 37 minutes, 39 seconds of which processes are legible for even an agentic operation requires work. The determination of what kind of security 37:48 37 minutes, 48 seconds guardrails need to be in place is an opportunity. The determination of uh where should the process overrides be 37:55 37 minutes, 55 seconds with a human in the loop is an intentional exercise. All of these are the scaffolding that needs to be put in place to ensure that you can actually 38:03 38 minutes, 3 seconds truly get to the end state itself and and our view is that that's creating uh you know expanding surface area in terms of the places where we can play. 38:13 38 minutes, 13 seconds Got it. Got it. Thanks for that very detailed explanation. Just one bookkeeping question for D sir. Sir, our debt on the book has more than doubled 38:22 38 minutes, 22 seconds over the last two years from 1,600 to almost 1,600 crores right now. Of course, this is based on the acquisitions primary due to the acquisitions that we've done. What is 38:30 38 minutes, 30 seconds the outlook on this number? Do we expect this number to remain stable here on and then maybe uh the internal cash flow generation to uh lower this debt in the 38:39 38 minutes, 39 seconds coming years or do you believe we are not going to shy away from any more uh acquisition opportunities and this uh 38:46 38 minutes, 46 seconds debt and we would be okay with this this debt going further up as well. 38:53 38 minutes, 53 seconds I think we don't that don't see with that angle of being I think some portion of being that continue to be and you've 39:00 39 minutes seen that our main model is the cash flow what we generate normally we pay 40 to 50% to the shareholder 50% mainly 39:08 39 minutes, 8 seconds utilize for a I'll say the more for acquisition or a growth purposes so I think that will continue to remain and 39:15 39 minutes, 15 seconds so that level will continue to go down last year also I think if you see before that year we almost that increase was 700 cr while the current year the debt 39:24 39 minutes, 24 seconds increases 200 crores or 250 cr. So it has been come down we have actually repaid. So the yeah initial buildup and the additional builtup is some of them 39:33 39 minutes, 33 seconds is through the acquisition but the cash flow is very healthy. I think we want to just ensure that we have a right billing and right 39:41 39 minutes, 41 seconds receivables. We are in that stage of being and we continue to be utilize the cash flow from a overall this basis not to be really thinking of being just 39:50 39 minutes, 50 seconds repaying a debt or not to think on a growth or a other other investment. 39:55 39 minutes, 55 seconds Got it. Got it. So the debt is not at any alarming level in our opinion and uh there would still be some buffer if you want to uh acquire make any more acquisitions. Right. 40:05 40 minutes, 5 seconds Yeah, got it. Got it. Great sir. Thank you so much for taking my questions and wish you all the best. Thank you. 40:13 40 minutes, 13 seconds Thank you. Next question is from the line of Girish Pai from BOP Capital Market. Please go ahead. 40:20 40 minutes, 20 seconds Yeah. Uh thanks for the opportunity. Uh I just had few questions on the fourth quarter and the guidance is given for FI27. 40:29 40 minutes, 29 seconds So fourth quarter you had a 3% Q growth in CC terms. I think of which some 130 basis points came from telematic if I 40:36 40 minutes, 36 seconds heard you right. So was this quarter softer than what you thought uh when when the quarter started and if that 40:44 40 minutes, 44 seconds were to be the case what drove this softness. 40:50 40 minutes, 50 seconds Thank you thank you Girish for that question. Uh so Q4 was broadly in line with our expectations at the start of 40:56 40 minutes, 56 seconds the quarter with u two exceptions and I called that out in our opening comments itself. The first shortfall was on account of the implementation of a key 41:05 41 minutes, 5 seconds UK collections deal that shifted to the current quarter that we are in Q1 of FI27 because regulatory approvals took much longer than we anticipated itself. 41:14 41 minutes, 14 seconds Uh and you know what what I will say is that we have since received the approval and the deal is now pretty much ramped up as as we speak. And the second is in 41:23 41 minutes, 23 seconds January 2026 Medicare Advantage plans entered a tighter regulatory environment. In response, some of the payers suspended the ramp up of planned 41:31 41 minutes, 31 seconds programs that were already underway while they reassessed the implications. 41:35 41 minutes, 35 seconds So, it's a short-term timing impact uh on the healthcare payer revenue in Q4. 41:39 41 minutes, 39 seconds But neither of this in in our minds is structural. The UK deal, as I said, is now live. The payer programs are expected to resume. If anything else, it 41:46 41 minutes, 46 seconds actually puts even more pressure on them as regulatory clarity emerges. And excluding these timing effects, I think the underlying business momentum continues to remain strong. 41:57 41 minutes, 57 seconds Okay. Uh my second question is with regard to uh the yearly growth that you've clocked in FI26 which is 13.6 on CC basis. How much of this was 42:06 42 minutes, 6 seconds contributed by inorganic and for FI27 to 13%. Uh is there an inorganic component 42:13 42 minutes, 13 seconds to it? So the inorganic components for both FI26 and FI27. 42:19 42 minutes, 19 seconds Yeah. Yeah. So if you if you take um FI26 uh past few credit and tele contributed about about 1 and a half% to 42:26 42 minutes, 26 seconds the FI26 growth excluding this it's about 12.1% for FI26 and the bulk of our growth still continues to be organic uh 42:34 42 minutes, 34 seconds driven by deal wins account mining and new logo additions and as we get into FI27 uh we anticipate that uh the 42:43 42 minutes, 43 seconds contribution of you know the the two acquisitions that we made will probably be in the range of about two to two and a half% uh going into F527. 42:54 42 minutes, 54 seconds Okay. A couple of questions on your uh full stack intelligent operator strategy that you have. You come from a a place 43:01 43 minutes, 1 second where you have been very strong on the operations side the pillar on the operations side whereas implementation strategy uh are probably stronger for 43:10 43 minutes, 10 seconds some of the diversified IT services company. So what exactly is the right to win for us? uh while I I get the 43:17 43 minutes, 17 seconds strategy and looks very interesting but uh when you're competing against some of the diversified IT services companies 43:24 43 minutes, 24 seconds um how would how would you stack up there because they probably come from owning or being part of the two three 43:31 43 minutes, 31 seconds other pillars in a much more uh material fashion than you are actually I'm glad you asked the question 43:38 43 minutes, 38 seconds uh Girish because uh the the answer is actually in exactly the way you framed the question uh the framing that you had was uh a lot of the diversified players have pillars. 43:51 43 minutes, 51 seconds The pillars is the problem. Uh right because the way a lot of organizations have built up right over the years 43:58 43 minutes, 58 seconds somebody is an IT services player, somebody is a systems integrator, somebody is a BPO, somebody is a consulting firm. And the problem is in that definition because it's inside out. 44:09 44 minutes, 9 seconds It's the way firms have architected themselves. It's not necessarily the way clients buy and that that opportunity 44:18 44 minutes, 18 seconds is playing out even more so right now from a visibility standpoint. So today what clients are looking for is that one single continuous motion and when we 44:27 44 minutes, 27 seconds launched intelligence that operates as the next phase of our intent was to say that clients today want one single 44:34 44 minutes, 34 seconds continuous motion. They want a partner who can not just advice but actually implement. That implementation could be 44:42 44 minutes, 42 seconds on the technology side. It could be around modernizing what they might have. 44:45 44 minutes, 45 seconds It might be around cleaning up their data so on and so forth. But don't just implement it for us. Also run the operations. And don't just run the 44:54 44 minutes, 54 seconds operations, help continue to transform it. And by the way, do that in one single continuous motion without the pillars, without the silos that have historically plagued full service firms. 45:04 45 minutes, 4 seconds The reason why we feel very good about it is because I think our our size, our 45:10 45 minutes, 10 seconds agility and nimleness allows us to put the right team to solve the customer problem and we start with the customer 45:18 45 minutes, 18 seconds problem first to ensure that we are assembling the right set of folks rather than thinking about internal boundaries which is which is typically the way you know full service firms might have been. 45:29 45 minutes, 29 seconds So we think we uh you know this is creating an opportunity for us to expand our surface area. It's solving a problem 45:37 45 minutes, 37 seconds for the customers and and more importantly right it builds on our domain depth. So what's the backbone of this? Our backbone of this is is our 45:45 45 minutes, 45 seconds deep domain understanding of regulated workflows and that knowledge coupled with what I just articulated allows us 45:52 45 minutes, 52 seconds to go out there and underwrite an outcome. And by the way, when we do it the first time, we gather information of how we did it, which then becomes a 46:01 46 minutes, 1 second compounding advantage when we do the same process for a for a second client and a third client and a fourth plant because you're building on that knowledge along the way itself. That's 46:09 46 minutes, 9 seconds what the process harness that we have created as part of the intelligence that operates is is an integral uh building block itself. So we we we think it's it 46:18 46 minutes, 18 seconds sets us up well. It expands our surface area and allows us to compete very effectively. 46:29 46 minutes, 29 seconds Thank you. 46:31 46 minutes, 31 seconds Next question is from the line of Deep Ma from MK Global. Please go ahead. Yeah. Uh thanks for the opportunity. 46:39 46 minutes, 39 seconds Couple of questions. Uh first of all just want to understand investment required to deliver on our strategy about intelligence that occurred. how we 46:48 46 minutes, 48 seconds intend to balance investment versus let's say our margin expiration and if you can give some sense about area of investment because you might require 46:56 46 minutes, 56 seconds different kind of talent compared to let's say traditional hiring so broad thought process around it. Uh second question is about the considering our 47:06 47 minutes, 6 seconds portfolio and composition of revenue. Uh what kind of additional deflation or headwind you expect because of AI 47:13 47 minutes, 13 seconds productivity expectation in existing business. 47:16 47 minutes, 16 seconds Uh third question is about the 27 growth guidance. how you expect growth to play out because I think couple of point you 47:23 47 minutes, 23 seconds highlighted in your prepared remark about some of the deal which will take time to ramp up and all those thing uh between H1 H2 how the growth trajectory 47:32 47 minutes, 32 seconds play out and last question is about FI26 versus 27 organic growth if I look at it you 47:39 47 minutes, 39 seconds grow indicated about 1 and a half percentage amenda contribution in 26 which in a way implies your 12%age kind 47:47 47 minutes, 47 seconds of organic growth in 26 which is likely to moderate to around 9 odd percentage on midpoint organic growth kind of thing 47:56 47 minutes, 56 seconds uh considering 2 and a half percentage if I take as a number so seems to be slightly moderating where you have some 48:02 48 minutes, 2 seconds advantage now in terms of uh some of the deal which were delayed likely to now start pimping up plus momentum is with 48:11 48 minutes, 11 seconds you 1 billion plus pipeline so if you can give thought process around it thank you 48:18 48 minutes, 18 seconds thank you the for that comprehensive uh list of questions. I'm just want to make sure that I I you had two questions on the growth guidance and one on the margin versus the investments required. 48:29 48 minutes, 29 seconds There was one question that I missed. Uh could you just which I think was the second question that you had 48:36 48 minutes, 36 seconds H1 versus H2 in terms of the some of the uh deal will take time to kind of narrative. 48:43 48 minutes, 43 seconds Yeah. Yeah. Fair. So let me start with the uh margin uh versus investment uh I'm actually going to go back in time 48:51 48 minutes, 51 seconds right and one of the things that if you recall u when I joined in u you know in 48:58 48 minutes, 58 seconds the middle of FI24 uh and we had provided at that point in time how this is going to play out from a guidance standpoint and what was our 49:07 49 minutes, 7 seconds thesis uh we said we'd hit a billion dollar run rate by Q4 of FI26. We actually crossed 49:16 49 minutes, 16 seconds that in Q4 of FI25. We said margins would be flat in FI25 and then we'll see 50 to 75 basis points of margin 49:24 49 minutes, 24 seconds improvement every year for the next few years for the next 3 years. So that we think of 14 to 15% EBIT band is the range at which we would like to operate. 49:35 49 minutes, 35 seconds We were flat on margins while continuing to make investments in go to market and technology in FI25. in FI26 if you look 49:43 49 minutes, 43 seconds at the margin uh EBIT expansion uh it's been roughly about 74 basis points so we're pretty much in the higher end of 49:51 49 minutes, 51 seconds the uh range that was there and if you look at our guidance for this fiscal uh we continue to you know uh our guidance 50:00 50 minutes for FI27 is higher than the Q4 exit EBIT which 50:06 50 minutes, 6 seconds was at 12.2 uh the lower end is at 12.25 25 we feel comfortable with what we have seen in terms of the opportunities 50:15 50 minutes, 15 seconds um and those opportunities are coming either in account of um automation and AI they're coming because of greater 50:23 50 minutes, 23 seconds offshoring and nearshoring uh they're coming because of reimagining of workflows on the on account of how we are trying to alter our ways of working 50:32 50 minutes, 32 seconds itself to become truly an AI native organization itself and that gives us comfort on the margins but at the same 50:38 50 minutes, 38 seconds time as you rightly called out as we are doing some of these um efficiency saves 50:46 50 minutes, 46 seconds we're also attracting different sets of folks into the organization so for instance we have people who are at the intersection of 50:53 50 minutes, 53 seconds domain plus AI we have people who are forward deployed engineers we have folks who are builders uh and what they allow 51:00 51 minutes us to do is to unlock value solve for the last mile problem that typically exists with customers or even for our own internal operations to ensure that 51:09 51 minutes, 9 seconds we can operationalize the AI itself. So we have a we have a new cohort of uh we have new cohorts of people which are 51:18 51 minutes, 18 seconds different than what uh the earthwire first source organization might have had and we continue to build on that. That being said we do believe that our 51:26 51 minutes, 26 seconds ability to deliver the margin guidance that we have continues to remain unchanged while we make these uh uh 51:34 51 minutes, 34 seconds these investments. So in some sense there are efficiency saves which also are allowing us to fund these investments that are coming into play. 51:40 51 minutes, 40 seconds So that's that's as far as the first question is concerned. Um let me talk a little bit about the growth guidance. Uh because the last three questions that 51:48 51 minutes, 48 seconds you had were all related to growth itself. I mean when we provided growth and again we've been consistent on this all all together. 51:56 51 minutes, 56 seconds What we have at a point in time is always line of sight or visibility to the lower end of the guidance and then we end up having obviously pipeline and 52:05 52 minutes, 5 seconds where we expect different ramps and so on and so forth to allow us to bridge the gap and get to uh the higher end of the guidance and that's our best that's our visibility at this point in time. 52:15 52 minutes, 15 seconds Obviously that continues to evolve as as dealwinds happen as pipeline goes up and other variables come into play and so on 52:22 52 minutes, 22 seconds and so forth. But at this point in time as we start the year we feel comfortable with that lower end 10% guidance that we 52:30 52 minutes, 30 seconds have provided uh for the for the full year and which as you know is is at the top desile of growth guidance that is 52:38 52 minutes, 38 seconds there globally today you know across sector whether it's IT BO so on and so forth. Um the third point that is there 52:45 52 minutes, 45 seconds related to the uh split between H1 and H2. Uh what we expected is is that uh 52:53 52 minutes, 53 seconds it's we don't expect this to be backended but rather almost spread out across the four quarters itself. So you should see see this evenly playing out. 53:06 53 minutes, 6 seconds Understood. And can you provide some sense about the organic growth distribution which in a way implies in the guidance? 53:14 53 minutes, 14 seconds Yeah, so I as I think I responded to this question a little while back but we we are accounting for roughly about a 2% in organic growth to the 10% uh 10 to 13% range. 53:24 53 minutes, 24 seconds No I understand why I ask is if I look let's say we guided 14 and 1 half to 15 and a half at the end of quarter 3 we 53:31 53 minutes, 31 seconds are roughly a percentage lower. Now when we are guiding 10 to 13 in a way uh it require roughly 2 to 3% CQGR for next 53:39 53 minutes, 39 seconds four quarter just trying to understand uh acquisition contribution wise now largely we have captured most of the 53:47 53 minutes, 47 seconds things uh uh so considering these two three things uh two two three% is a very healthy growth 53:56 53 minutes, 56 seconds uh secure what we are building in next year so just try to understand uh what are the additional comforting factor 54:04 54 minutes, 4 seconds which you have built and which if you can give some sense about those. 54:11 54 minutes, 11 seconds So if you if you look at uh the variables that are coming into place and 54:18 54 minutes, 18 seconds let me just reiterate the comment on Q4 uh as I mentioned Q4 was broadly in line with our expectations barring those two 54:26 54 minutes, 26 seconds exceptions. One was the implementation of the key UK collections plans which needed regulatory approvals and those regulatory approvals got shifted by a 54:34 54 minutes, 34 seconds quarter. That deal is already live as we speak and and then what we saw was a timing challenge with some of the 54:42 54 minutes, 42 seconds Medicare advantage plans itself but those those things also we expect are sorted through both of which actually are creating tailwinds as we get into 54:49 54 minutes, 49 seconds the business itself. So that's comment one. So it's not that the revenue is gone but rather it's deferred or delayed by a quarter itself if you will. Now 54:57 54 minutes, 57 seconds going into FI27 um what are the things that make us uh 55:05 55 minutes, 5 seconds make us uh confident of you know the visibility that we end up seeing today? 55:10 55 minutes, 10 seconds One is our deal pipeline is at its highest ever level today as we speak uh in the history of the company. Number 55:17 55 minutes, 17 seconds two, if you look at the the the strategic logos that we have added uh through the course of the of the quarter 55:25 55 minutes, 25 seconds itself, we've added about 24 strategic logos out of the 47 new clients that we added in the quarter. Those 24 strategic 55:31 55 minutes, 31 seconds logos u have opportunity to scale up and uh and as we said a strategic logo for 55:39 55 minutes, 39 seconds us is one which has the potential to give us at least $5 million of annual business. So given that opportunity set that exists and given our track record 55:47 55 minutes, 47 seconds if you look at the last last year 50% of the strategic logos that we added in the previous 18 months we've already been 55:55 55 minutes, 55 seconds able to convert that into $5 million plus accounts. We think we have a good track record of of being able to deepen 56:03 56 minutes, 3 seconds our footprint in these strategic logos itself. So that gives us that's the second data point that gives us comfort in terms of what we see as the 56:10 56 minutes, 10 seconds opportunity itself. And third is um within our existing accounts already uh 56:18 56 minutes, 18 seconds across the portfolio whether it's our top five, top 10 or the next rung below, you're seeing that in terms of the uh 56:26 56 minutes, 26 seconds the the deepening of the client footprint that that's happening. I mean just take one data point, right? Our $5 million plus accounts in the last two 56:32 56 minutes, 32 seconds years is up by 68%. Our $1 million plus clients is up by 46%. Those are pretty 56:40 56 minutes, 40 seconds uh remarkable statistics just given the fact that I mean if some of you may recall when I just joined we talked 56:47 56 minutes, 47 seconds about one of the central themes of one first source is how can we deepen our footprints and crossell upsell was going to be a big part of that from a strategy 56:55 56 minutes, 55 seconds standpoint two years out that's what we've been executing on thank you very much for compliment 57:04 57 minutes, 4 seconds and and and by the way we are still scratching the surface on that so I think the market opportunity is still immense Thank you for the question. 57:13 57 minutes, 13 seconds Thank you ladies and gentlemen. In order to ensure that the management will be able to address questions from all the participants in the conference, kindly 57:22 57 minutes, 22 seconds limit your questions to two per participant. Should you have a follow-up question, please rejoin the queue. The next question is from the line of Shadhaal from Asian Market Securities. 57:32 57 minutes, 32 seconds Please go ahead. 57:34 57 minutes, 34 seconds Yeah. Hi, congratulations Rupesh on our strong guidance. Two questions. First of all, uh this BPATH healthcare deal, has 57:41 57 minutes, 41 seconds it shed up to its peak potential or do we still have some uh revenue to be expected in the first half of 2020? 57:51 57 minutes, 51 seconds So, we don't comment on specific deals itself uh you know, you know, in terms of where they are at or so on and so forth. But what's fair to to assume is 58:00 58 minutes that all our large deal wins including the transformationative ones progressing as per expected timelines. Um and you 58:07 58 minutes, 7 seconds know we we uh continue to remain confident in the long-term trajectory of all of these deals itself. 58:13 58 minutes, 13 seconds The reason I asked this is because this quarter our growth were predominantly led by healthcare vertical which grew 10 58:20 58 minutes, 20 seconds 11%. I was just checking whether um this BPA steel camper was a good contributor to growth. 58:27 58 minutes, 27 seconds I I think it was broad-based across several of our clients. Sha. Okay. In the healthare space. Yeah. 58:34 58 minutes, 34 seconds Got it. And secondly, in your presentation, in your medium-term strategy, you've highlighted vertical expansion into retail and utilities in 58:42 58 minutes, 42 seconds the US and geographical expansion in Middle East as key focus areas. So, are these uh something that you're looking 58:50 58 minutes, 50 seconds at organically or you want to build up through acquisitions again? 58:57 58 minutes, 57 seconds um shredd is a ready base of deep domain knowledge 59:06 59 minutes, 6 seconds in these two verticals uh from the work that we've done in the US uh in the UK markets already. Uh so our view is that 59:14 59 minutes, 14 seconds we can extend some of that into the US markets. In fact, uh, as we speak, in the last three three months or so, we 59:23 59 minutes, 23 seconds onboarded somebody to spearhead our, uh, business from a utility standpoint in the North American region that's already 59:29 59 minutes, 29 seconds starting to, uh, bear fruit in terms of the pipeline that we've been able to build up. Uh, so we continue to think that, you know, we we can look at doing 59:38 59 minutes, 38 seconds this organically. That being said, look, u we are also uh opportunistic on some of these areas. If it's going to give us 59:46 59 minutes, 46 seconds a capability gap that we don't have or it's going to allow us to get distribution access, those have been the two vectors that we have talked about as potentially opportunities to do tuckins. 59:56 59 minutes, 56 seconds That might be the case. So it's not that we we we're not uh we're we're averse to that but at the same time I think we 1:00:03 1 hour, 3 seconds have a strong solid foundation to build an extent to to the North American region particularly for the retail and the utility side. 1:00:11 1 hour, 11 seconds Got it. And this last question I think uh you indicated that uh we had inorganic contribution of close to 150 1:00:18 1 hour, 18 seconds bits in 26 but I guess as source also got incrementally consolidated for 5 months more in 26. So wouldn't in the 1:00:27 1 hour, 27 seconds organic component be close to 450 bits for 26? 1:00:34 1 hour, 34 seconds Uh yeah you know so so you're right sha I think our organic growth was close to about uh 10 odd% in constant currency 1:00:41 1 hour, 41 seconds terms if if you exclude sensors PTC and telemetic. Yes. 1:00:49 1 hour, 49 seconds Okay. Uh would it be slightly lower than that? I think uh sub 10% is I think it's about 9 9.8 9.8 to 9.9 somewhere in that zone. 1:01:00 1 hour, 1 minute Okay. And just last question will it be possible to quantify telemetic contribution uh for the quarter? You indicated the y contribution but in 1:01:09 1 hour, 1 minute, 9 seconds terms of sequential uh uh sequential uh contribution what was the number? 1:01:18 1 hour, 1 minute, 18 seconds Um I think we can come back to you. I don't I don't have the data readily available but I think uh you know we can we can 1:01:26 1 hour, 1 minute, 26 seconds follow that up uh you know as a follow-up question Sha with you. 1:01:30 1 hour, 1 minute, 30 seconds Great. Great. Okay. Thank you and all the best. Thank you Sha. 1:01:36 1 hour, 1 minute, 36 seconds Thank you. We will take that as a last question. Thank you. I would now like to hand the conference over to Mr. Shadani for closing comments. 1:01:48 1 hour, 1 minute, 48 seconds Thank you all for uh joining the call and for your questions. Um I want to close with a few uh final points. Our 1:01:56 1 hour, 1 minute, 56 seconds sales engine continues to work well. We had four large deal wins in Q4, which is the fifth straight quarter of four or more large deals. Our deal pipeline at 1:02:05 1 hour, 2 minutes, 5 seconds over a billion dollars continues to be and in fact is at its highest ever level in the history of the company. Our execution is on track. As you can see, 1:02:14 1 hour, 2 minutes, 14 seconds we are executing well on improving our margins and last year for us uh was the first full year of delivering to the 1:02:22 1 hour, 2 minutes, 22 seconds promise of the 50 to 75 basis point margin expansion. EBIT margins as you know have increased by 100 basis points over the last four quarters. Our cash 1:02:31 1 hour, 2 minutes, 31 seconds conversion has been strong. Our tobida this year is 78% and our free cash flow to the adjusted path is 160%. 1:02:40 1 hour, 2 minutes, 40 seconds Our long-term aspirations continue to remain intact. 1:02:44 1 hour, 2 minutes, 44 seconds As I mentioned earlier, we see our constant currency revenue growth for FI27 in the 10 to 13% range, which places us in the top desile in the 1:02:52 1 hour, 2 minutes, 52 seconds industry and we remain laser focused on taking our EBIT margin to 14 to 15% band in the next couple of years. That's all 1:03:00 1 hour, 3 minutes from our side and we look forward to interacting with you again in the next quarter call. Thank you all. 1:03:07 1 hour, 3 minutes, 7 seconds Thank you very much. 1:03:09 1 hour, 3 minutes, 9 seconds On behalf of First Sol on behalf of First Solutions Limited, that concludes this conference. Thank you all for joining us today and you may now disconnect your lines.