Happy Square Outsourcing Services Ltd — Q4 FY26

Happy Square Outsourcing Services Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=zWeBLwvuFgY Published: 4 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the H2 and FI26 results conference call of Happy Square Outsourcing Services Limited hosted by 0:10 10 seconds Equbridge X Advisers Private Limited. As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask 0:18 18 seconds questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing star then zero on 0:26 26 seconds your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Miss Duvi 0:33 33 seconds from Equidex Advisers. Thank you and over to you ma'am. 0:38 38 seconds Thank you and a very good afternoon to everyone. Welcome to the H2 FI26 earnings call of Happy Square Outsourcing Services Limited. From 0:46 46 seconds management team we have with us Miss Shredda Rajpal, promoter and managing director, Miss Deepipika Unela, whole 0:53 53 seconds time director. Mr. Sesh Rajpal, chief operating officer, Mr. Vikas Jane, chief financial officer. Mr. S Vishwakarmma, 1:01 1 minute, 1 second senior accountant manager and Miss Swarna, compliance officer and company secretary. The call will begin with opening remarks from the management. 1:09 1 minute, 9 seconds After which we will open the floor for Q&A. With that, I would now like to hand over the call to management for opening remarks. Thank you and over to you Miss Swarna. 1:21 1 minute, 21 seconds Thank you. Good evening everyone. Thank you for joining services 1:28 1 minute, 28 seconds and other your voice is not audible properly. 1:43 1 minute, 43 seconds Good evening everyone and thank you for joining happy for shopping services H26 1:50 1 minute, 50 seconds early fall. A warm welcome to all the experts having stakeholder joining us today. Sincerely thank our shareholders, 1:58 1 minute, 58 seconds clients, employees and business partner for their continued trust and support in our journey. Happying services limited 2:06 2 minutes, 6 seconds operating under the white force brand continues to strengthen its position as a leading provider of workforce solutions and HR outsourcing services in 2:15 2 minutes, 15 seconds India. Our services portfolio spends temporary staffing, permanent recruitment, payroll processing, compliance management and recruitment 2:23 2 minutes, 23 seconds process outsourcing enabling organization across industry to efficiently manage their workload with performance. Over year a scalable 2:32 2 minutes, 32 seconds technology driver platform that combine digital recruitment capabilities with deep industry expertise. This has 2:39 2 minutes, 39 seconds enabled us to deliver workflow solution across diverse sector including FMCG, retail, logistics, manufacturing, 2:48 2 minutes, 48 seconds healthcare and several other high growth industry. During FI26, we continue to focus on strengthening our operational 2:57 2 minutes, 57 seconds capabilities, expanding our client base, enhancing our technology platform, and improving execution efficiency. Our 3:06 3 minutes, 6 seconds asset light based business model coupled with growing demand for organ staffing and recruitment services enable us to 3:14 3 minutes, 14 seconds deliver steady growth while maintaining operational discipline. One of our key differentiation remain our ability to 3:23 3 minutes, 23 seconds deliver rapid and efficient recruitment solution. During the year, we maintain an industry-leading turnaround time of 3:30 3 minutes, 30 seconds approximately 60 hours, enabling us to keep client requirement quickly and effectively across Geographic. This 3:38 3 minutes, 38 seconds operational strength has helped us build long-term client relationships and reinforce our reputation as a trusted 3:46 3 minutes, 46 seconds workforce solution partner. We also continue to expand our geographical footprint and today have a business 3:52 3 minutes, 52 seconds across more than 20 states in India. Our participation on government marketplace gener platform and growing multi-state 4:01 4 minutes, 1 second operation has further strengthening our ability to cater to both government and private sector opportunities. Another 4:09 4 minutes, 9 seconds important highlight of the year was the continued expansion of our recruitment process outsourcing business. Through our technology enabled recruitment 4:18 4 minutes, 18 seconds platform and extensive talent network, we have been able to support clients with scalable, efficient and high 4:25 4 minutes, 25 seconds quality hiring solutions contributing to the growth of our higher margin service offering. Our client base continues to 4:33 4 minutes, 33 seconds grow during the year and we serve more than 300 corporate client across multiple sector. The diversified 4:40 4 minutes, 40 seconds customer portfolio provide is a link to our business model by creating opportunity for sustainable long-term 4:46 4 minutes, 46 seconds growth. We also witness in government and institutional business during 4:53 4 minutes, 53 seconds quarter 426. We secured 25 tenders with a total order inflow of approximately 4:59 4 minutes, 59 seconds 24.13 cr include seven new tenders aggregating 12.09 cr and 18 contract extension worth rupees 12.03. 03 cr. 5:09 5 minutes, 9 seconds These will reflect a strong execution capability, high client retention level and growing credibility across government and institutional customers. 5:19 5 minutes, 19 seconds Coming to our financial performance by participational program for 5:27 5 minutes, 27 seconds total mobile stood at 109.88 88 crores considering a growth of 49% year one 5:36 5 minutes, 36 seconds year stood at 7.86 cr while profit after tech stood at 5.98 cr. The performance 5:44 5 minutes, 44 seconds is supported by increasing client addition higher platform engagement growing demand for staffing solution and continued operational efficiency. 5:54 5 minutes, 54 seconds Our edge by 26 performance was particularly encouraging. Total for 6:02 6 minutes, 2 seconds at 66.51 cr reflecting a strong growth of 35.12% 6:08 6 minutes, 8 seconds year on year stood at 5.10 cr while profit after fix stood at 4.21 crit 6:16 6 minutes, 16 seconds profit view by 27.20% yearon year demonstrating our strength of our operating model and our ability 6:24 6 minutes, 24 seconds to efficiently scale the business while maintaining profitability. Looking ahead, we remain focused on strengthening our technology platform, 6:32 6 minutes, 32 seconds expanding our talent ecosystem, increasing clients, growing our uh growing our RPO business and enhancing 6:41 6 minutes, 41 seconds our presence across both enterprise and government segments. With increasing formalization of the workforce, rising 6:48 6 minutes, 48 seconds demand for outsourced crafting solutions and continued adoption of technologydriven recruitment process, we believe the industry offer significant 6:56 6 minutes, 56 seconds long-term opportunities. Our focus on delivering sustainable growth, improving operational efficiency, creating value 7:04 7 minutes, 4 seconds for our clients and generating long-term return for all our stakeholders. 7:09 7 minutes, 9 seconds Before we begin the discussion, I would like to thank our employee, client, channel partners, supplier and shareholder for their continued support 7:17 7 minutes, 17 seconds and confidence in habit for shipping services limited. With that, I now hand over the call for further discussion and Q&A. Thank you. 7:29 7 minutes, 29 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 touchtone 7:37 7 minutes, 37 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to please use handsets while 7:45 7 minutes, 45 seconds asking a question. Ladies and gentlemen, we will now wait for a moment while the question cube assembles. 7:56 7 minutes, 56 seconds Our first question comes from the line of Yash with Shan Patel Asset Management. Please go ahead. 8:04 8 minutes, 4 seconds Hello. Uh congratulations on the good sets of number. Uh my first question is regarding the IITA percentage. Uh I have 8:13 8 minutes, 13 seconds seen it by wire there's a decrease of 4%. What is the reason behind that 8:21 8 minutes, 21 seconds like there is an uh uh major expenses has been done last year we have do the IPO so there is a major expenses from 8:30 8 minutes, 30 seconds that IPO side only. So that why this is uh yeah so you know what is the sustainable IITA 8:37 8 minutes, 37 seconds we can expect for FI27 and FI 28 maybe on this 7% plus 8:44 8 minutes, 44 seconds okay and what is the revenue guidance you would like to give for FI 27 8:51 8 minutes, 51 seconds 27 we targeting this uh say uh maybe on 80% growth on from the 8:59 8 minutes, 59 seconds at present situation Okay. Okay. Thank you so much. Yeah. 9:07 9 minutes, 7 seconds Thank you. Our next question comes from the line of Nishita Shanklesha with Sapphire Capital. Please go ahead. 9:15 9 minutes, 15 seconds Um yes. Uh thank you for taking my question. So uh again a follow-up question on the previous participants question. uh you mentioned uh that uh we 9:25 9 minutes, 25 seconds did some major expenses in FI26 which resulted in the decline in the ABATA margin and so just wanted to understand 9:32 9 minutes, 32 seconds what those expenses were and previously we've done margins of around 9% so why 9:40 9 minutes, 40 seconds the sustainable margin you are now guiding for 7% wanted to understand that as well no it is we are uh like investing into 9:48 9 minutes, 48 seconds the this AI uh process and technology That is the thing future we have target a more uh growth on that part because 9:56 9 minutes, 56 seconds now we have adopted the 50% uh you know AI process. So we heavily invested in this technology part. Now we are future 10:04 10 minutes, 4 seconds we are planning to uh come up with this uh 50 50% business uh with the involvement of AI and with the 10:11 10 minutes, 11 seconds involvement of human. So once we have executed 100% this success ratio of 50 50% or maybe you know 60% AI involvement 10:19 10 minutes, 19 seconds and 30% is human involvement then definitely my like profit margin goes uh you know hit and uh that goes on 10:27 10 minutes, 27 seconds increased side also but as of now we invested in technology and we adopt a lot of thing and we have pay their uh 10:34 10 minutes, 34 seconds open AI as well as then claude we have purchases so we invested heavy in this uh you know process so that is the reason behind 10:43 10 minutes, 43 seconds Definitely. Yeah. Once we have used this you know uh technology then definitely our margin will increase. 10:50 10 minutes, 50 seconds So when do we see that happening like uh down the line two years later? this year and uh maybe you know this year after 10:58 10 minutes, 58 seconds this we have uh already invested and we our pilot project is already success uh we have started uh because and we not 11:07 11 minutes, 7 seconds using in technology for uh identify the right manpower but we using our technology to bidding of the new 11:15 11 minutes, 15 seconds government businesses also as well as the we use our technology to identify the right candidate at right time and we 11:23 11 minutes, 23 seconds created into the large number of the data bank also where we can pull off using our in-house data bank as well as 11:31 11 minutes, 31 seconds we have developing the uh partner portal also where our franchisee and partner can connected and they can also use our 11:39 11 minutes, 39 seconds AI tools. So we are planning of uh this multiple aspect where we are into on that way uh so that we can streamline 11:48 11 minutes, 48 seconds this everything into this uh tech based company as we have already committed key we are tech based organizer so we uh go 11:57 11 minutes, 57 seconds on that way only right so like in FI28 can we see the margin going up definitely definitely definitely yeah 12:04 12 minutes, 4 seconds yeah and we had already diversified some other uh portfolio also so definitely you'll see that customer growth. 12:13 12 minutes, 13 seconds Right. Understood. And uh what is the growth driver for this 80% growth that you just mentioned? 12:20 12 minutes, 20 seconds The reason behind this uh because uh as of now we have uh maybe you know this L1 bidder of the new government contract 12:29 12 minutes, 29 seconds and we are maybe in receiving this coming week uh with our biggest contract 12:36 12 minutes, 36 seconds of 21 cr rupees. There is a single work order and we have received from the government side only this Rajasthan government. So maybe you know this in a 12:45 12 minutes, 45 seconds week we'll receive this work order and apart of this we have a one more strong pipeline from government side only. So 12:53 12 minutes, 53 seconds we are committed to deliver the 40 cr rupees of work order uh within this month only. 13:02 13 minutes, 2 seconds Okay. So what is our pipeline if you can quantify that? And that's why I told you we have a very strong two pipeline. One will be mutilized in this week only. 13:13 13 minutes, 13 seconds This is the highest work order in the history of uh our organization. Uh we receive this is a single work order of 13:21 13 minutes, 21 seconds 21 cr rupees and that may be hit in this week only. maybe we'll receive within a 15 days and next we have an strong 13:29 13 minutes, 29 seconds pipeline of one more maybe you know 15 cr rupees work order that maybe hit again this uh coming week of this July 13:40 13 minutes, 40 seconds okay unders and uh my next question would be on uh so in our presentation we've mentioned our staffing numbers 13:49 13 minutes, 49 seconds like recruitment numbers in FY26 so it seemed to have declined So any reason for that? 13:57 13 minutes, 57 seconds No, there isn't uh like which number is decline? We number into this staffing businesses. 14:04 14 minutes, 4 seconds So the previously that time Yeah. Yeah. There that time there is an geographical position has been not supporting that quarter only we have 14:12 14 minutes, 12 seconds declined the number otherwise we have a very strong growth and right now we have done a uh we have already hired this 500 14:20 14 minutes, 20 seconds number uh this last three months. So maybe you know you see this strong growth in this quarter only. 14:28 14 minutes, 28 seconds Okay. Okay. Understood. Yeah. 14:30 14 minutes, 30 seconds And uh my last question will be on uh so what what is the investment amount in our AI processes? What is the capital that we invested? 14:42 14 minutes, 42 seconds Uh as of now to be honest uh this uh we planning to uh add on to 2 2.5 K but 14:49 14 minutes, 49 seconds because this uh uh you know uh costing of uh online uh there is an uh claw as 14:56 14 minutes, 56 seconds well as the uh the process of online deployment maybe it take depend on the how much uh data we have you know settle 15:06 15 minutes, 6 seconds down on the cloud. So that's depend the frequency of using uh because that time we cannot identify the things we say we 15:14 15 minutes, 14 seconds have more than um 1 million data. So if we can uh 100% will data through this technology base or maybe we can search 15:23 15 minutes, 23 seconds this data deploy to the any any kind of portal maybe you know this online either we use this Amazon or we use this uh 15:32 15 minutes, 32 seconds other company then uh maybe you know Google cloud so where we have paid a heavily amount of cost but now this data 15:42 15 minutes, 42 seconds center India has invested a lot of company they open their data center in India So we are figure out something key there 15:49 15 minutes, 49 seconds is a newcomer because now Adani as well as the other uh US company Google is already invested there uh India into the 15:58 15 minutes, 58 seconds data center. So in future our data center cost may be on a downside but as of now definitely where we migrate our 16:06 16 minutes, 6 seconds lot of data bank so we pay a heavy rent to this uh data centers right then. Okay unders thank you so 16:15 16 minutes, 15 seconds much. Yeah, thank you participants. You may press star and one if you wish to ask questions. Our next question comes from the line of Priyan Sharma, an investor. 16:26 16 minutes, 26 seconds Please go ahead. 16:28 16 minutes, 28 seconds Yes. Uh good evening sir and congratulations for the good set of numbers. So my question is sir that uh uh in our balance sheet the raw material 16:37 16 minutes, 37 seconds costs are pretty high. So what kind of costs uh that uh line type includes 16:44 16 minutes, 44 seconds raw material tunnel sir or maybe you know this vars 17:01 17 minutes, 1 second hello see if this person is available. So 17:09 17 minutes, 9 seconds hello can you connect this call to our account CFO Mr. There you go. 17:29 17 minutes, 29 seconds I'm getting connected. Just sir, your voice is not audible properly. 17:38 17 minutes, 38 seconds Uh hello. Uh yeah, good afternoon. Am I audible now to everyone? Yes sir. 17:46 17 minutes, 46 seconds Yeah. So I believe the question from uh uh investor was regarding the raw material cost which is uh getting 17:54 17 minutes, 54 seconds reflected in the financials. So since uh this is a service company we do not have any material cost as such majorly. Uh 18:02 18 minutes, 2 seconds the component which we are seeing is the payroll cost uh the salaries which we pay of our clients 18:10 18 minutes, 10 seconds over which we charge a mark of an agency fee. So that is getting covered in the cost of services consume which is basically the direct expenses for the company. 18:19 18 minutes, 19 seconds Got it. So this is not the material maybe. Yeah. Yeah. Please go on to the next question. 18:23 18 minutes, 23 seconds My next question is sir that uh you mentioned the pipeline for the upcoming projects or the contacts which we are 18:32 18 minutes, 32 seconds like uh going to get. So is it like more coming from PSUs or from uh private customers? 18:39 18 minutes, 39 seconds So we are major target into in this PSU because as of now this Indian government uh is very 18:49 18 minutes, 49 seconds aggressive previously there's an PSU and government is not more aggressive uh behind this but now Indian government 18:56 18 minutes, 56 seconds our economy has been grow so our uh government have a strong potential customer parly we focus on the private player also but previously we target a 19:05 19 minutes, 5 seconds 70% business from the uh top large corpor corporate and 30% to government business or PAC but now we are like into 19:14 19 minutes, 14 seconds in that stage where we go with the 50/50% 50% from the government business and 50% from the last one 19:22 19 minutes, 22 seconds got it sir and sir we mentioned about the integration of AI into our system so how exactly like AI can serve the 19:31 19 minutes, 31 seconds company and the systems as well as I wanted to understand that how does the uh new employee hiring 19:38 19 minutes, 38 seconds like changes when we opt for AI instead of hiring more people. 19:43 19 minutes, 43 seconds I I'll give you the uh one example. Uh suppose you hire a one uh finance manager maybe uh like so finance manager 19:52 19 minutes, 52 seconds as of now we have a data bank of 1 million. So we'll say we have more than 5,000 finance manager. So typically if 20:00 20 minutes we do this recruitment industry my like recruiter will call to the first they can shortlisting the profile then after they can started calling to that 20:09 20 minutes, 9 seconds recruiter uh maybe you know you know approach to every finance manager. So you'll say 500 people we have shortlisted. So maybe you know just five 20:17 20 minutes, 17 seconds to 10 people called this 500 people and we'll take a one week of time and we reach this uh you [clears throat] know 20:24 20 minutes, 24 seconds finance manager profile. Then after we have shortlisted out of 50 people then we uh sourced this people to send to the 20:32 20 minutes, 32 seconds client. But now after we using this AI technology out of 5,000 people we can 20:38 20 minutes, 38 seconds identify top 50 uh maybe in this finance manager within a period of 5 minute only. First this uh process has been 20:47 20 minutes, 47 seconds started. Now second phase we have started through chatboard our AI chatboard that goes to the every 20:54 20 minutes, 54 seconds shortlisted 500 uh you know finance manager profile they can ask the question either you are interested into relocate suppose this position is belong 21:03 21 minutes, 3 seconds to Mumbai but the gentleman is into Pune there is first screening that has been 21:11 21 minutes, 11 seconds done via the AI only either we are interested to relocate or maybe you know they have joining from immediate basis 21:18 21 minutes, 18 seconds because we need a immediate hire 3 months notice period there is no need. 21:24 21 minutes, 24 seconds So uh apart of this there is an budget also we have on budget five lakhs on load. So we we can search the four lakhs 21:32 21 minutes, 32 seconds rupees of candiate only we cannot search the seven lakhs or six lakhs. So there is a multiple thing where the human involvement but after this technology 21:40 21 minutes, 40 seconds there is no human involvement has been required only the you know uh final negotiation we have required on that 21:48 21 minutes, 48 seconds part of this we are developing in the calling part also where our candidate can direct call. So we are uh build up with this technology where our machine 21:57 21 minutes, 57 seconds can directly call and you know do this first kind of uh session with the candiate through machine only and we 22:04 22 minutes, 4 seconds have recently built up our uh AI chatbot also that is the name of VA chatbot VA 22:12 22 minutes, 12 seconds AI and it's already live in our website where candidate can ask 22:19 22 minutes, 19 seconds there is no guidance has been available but if this candidate reach to the white force website whereas in Ver AI is 22:25 22 minutes, 25 seconds available and V AI is guidewalk as of now we have more than 3,000 live opening so they can uh search key we have 3,000 22:34 22 minutes, 34 seconds live opening and for you as an finance manager so we have a 300 finance opening you can apply for this finance opening 22:41 22 minutes, 41 seconds then you can find out the better solution so these things we have already built up and this is technology definitely we are into strong uh you 22:50 22 minutes, 50 seconds know hope we create some better uh uh like uh marks or maybe you know some better placement compared to the other organization. 22:59 22 minutes, 59 seconds So sir have we trained our models accordingly because we must be having some parameters as you said that uh uh 23:07 23 minutes, 7 seconds whether the like uh the employee is ready to join from like he's able to join immediately or not. So do we like 23:15 23 minutes, 15 seconds train models according to yes yes very very good question. you can understand the technology that's why you you can say this is the investment is 23:24 23 minutes, 24 seconds goes on this train only we we develop our model train we uh as of now we have more than 15,000 resume is read by the 23:34 23 minutes, 34 seconds AI we target to uh maybe interaction of more than 1 million people uh through AI then definitely our VA AI is much more 23:43 23 minutes, 43 seconds mature about then definitely she will reply to the related to finance accounts and uh 23:50 23 minutes, 50 seconds they cannot reply to the technology part. Somehow there is a language barrier. So we train to the language barrier also. We train to the uh cross 23:59 23 minutes, 59 seconds city also. We can train to the what about the nasi? What about the Bombay? 24:05 24 minutes, 5 seconds What about the small town category? What about the work from home? This is kind of different different labor. But we 24:12 24 minutes, 12 seconds have trained every day our uh vi definitely goes trend. Now this uh we 24:19 24 minutes, 19 seconds have more than a 10 we future target to read a 10,000 resume per day. As of now they read only 500 but definitely we are 24:27 24 minutes, 27 seconds into that stage where she can read a 10,000 resume. 24:32 24 minutes, 32 seconds Got it. a very small uh like question related to this only that in last last two three I think two weeks back I was 24:39 24 minutes, 39 seconds reading the article where the companies were saying that because of the use of AI into the systems the tokens are 24:46 24 minutes, 46 seconds getting finished very very quickly right so yes yes yes this is the yeah yeah yeah yeah yeah this is the only way we have 24:56 24 minutes, 56 seconds spend the money but definitely this this claw and uh this but now The future is on cutth short. There are lot of people 25:04 25 minutes, 4 seconds are entering this business. Uh this open AI is already plot into a market. 25:10 25 minutes, 10 seconds Germany is already there. Nvidia is already enter in this process. So definitely we have into that stage key 25:18 25 minutes, 18 seconds we invest on that much of we cannot uh state that's why we have developed our in-house master CPU. So first we have 25:25 25 minutes, 25 seconds read on that CPU only because 25:33 25 minutes, 33 seconds pay but as of now we don't have an clearcut vision we wait for a reduced 25:40 25 minutes, 40 seconds rate we have developed our inhouse you know process master uh PC say like this 25:48 25 minutes, 48 seconds where we read this everything masterpinitely 26:02 26 minutes, 2 seconds we have already ready is already working and we our ATS is already working 26:10 26 minutes, 10 seconds we are into that state 35% of the product we have already launched got it sir thank you for answering my question 26:18 26 minutes, 18 seconds yeah yeah thank you very much thank You ladies and gentlemen to ask a question you may press star and one. Our 26:27 26 minutes, 27 seconds next question comes from the line of Vishal Meta with VM Investment. Please go ahead. 26:35 26 minutes, 35 seconds Hello. Am I audible? 26:36 26 minutes, 36 seconds Yeah. Yeah. Val, you are audible. Yeah, please. Yeah. Yeah. Yeah. Yeah. Hi, how are you? Hope you're doing well. 26:42 26 minutes, 42 seconds All good. All good, sir. Thanks for asking. Yeah. 26:44 26 minutes, 44 seconds Uh once again, congratulations for uh good numbers. Despite industry headwinds, I think we got 10 years this year. 26:54 26 minutes, 54 seconds So I was just two three questions from my side. So you said that we are targeting 80% growth this year on the 27:02 27 minutes, 2 seconds top line. So are H2 both will be same or we having more I mean more revenue 27:08 27 minutes, 8 seconds towards H2 or almost same on I mean both both year half. 27:16 27 minutes, 16 seconds Sir come again I can't understand fully your question. Please target% 27:24 27 minutes, 24 seconds growth 27 first months 27:34 27 minutes, 34 seconds grow it is not like this sir we we target on this our uh 40% you know this quarter 27:43 27 minutes, 43 seconds and 40% on the next quarter so that we have remaining 20% for the so if we can with this quarter 40% we are targeting 27:51 27 minutes, 51 seconds 40% for the next uh quarter. So we have hand 20% only in case we miss then definitely we have also because 27:59 27 minutes, 59 seconds touchboard and grabs of few people and the god we are into pipeline of 21 work order in hand maybe we receive within 28:07 28 minutes, 7 seconds this week only and maybe you know this coming uh next month July first week or maybe you know 15 or maybe you know 20 28:13 28 minutes, 13 seconds July we have opportunity of more than 15 cr of more so maybe you say 35 cr rupees of work order within this spam of two 28:22 28 minutes, 22 seconds month And this is the price business. Yeah. 28:27 28 minutes, 27 seconds Okay. From the existing business margin 28:38 28 minutes, 38 seconds we are targeting right% margin. 28:48 28 minutes, 48 seconds We are try our best if we shifting our 100% into in this uh tech base then definitely we deliver our commitment and 28:57 28 minutes, 57 seconds we more than that whatever we have committed because technology proper in then definitely our cost will goes down 29:05 29 minutes, 5 seconds but as of now definitely there is an expense you know a space where we invest in highly in tune the technology then definitely we are facing this challenge. 29:17 29 minutes, 17 seconds Right. 29:19 29 minutes, 19 seconds And for 28 29:28 29 minutes, 28 seconds in terms of revenue percentage from 27 we are targeting this year we 20 almost 29:37 29 minutes, 37 seconds we have crossed 200 plus and definitely we will cross a 300 plus. 29:52 29 minutes, 52 seconds Definitely marginal cost involved manower definitely and 29:59 29 minutes, 59 seconds future we are targeting you take care of yourself and talking. 30:10 30 minutes, 10 seconds Thank you very much. Thank you very much. 30:13 30 minutes, 13 seconds Thank you participants. You may press star and one to ask a question. 30:19 30 minutes, 19 seconds Our next question comes from the line of Jin from Enrich Wise Financial Services. Please go ahead. 30:27 30 minutes, 27 seconds Thank you so much for the opportunity and good evening all and congratulations for all the good good numbers that I achieved. Am I audible? 30:36 30 minutes, 36 seconds Yeah. Yeah. You are audible sir. Audible. Audible. 30:40 30 minutes, 40 seconds Yeah. Yeah. Congratulations for the win and thank you. 30:44 30 minutes, 44 seconds Yeah, thank you. Yeah. So, so there are several questions uh from so the question first question is see actually 30:52 30 minutes, 52 seconds your F26 revenue grew to almost 109 crores. uh but that remain largely flat 30:59 30 minutes, 59 seconds if we see. So uh uh uh so so any specific factors or any specific key factors I would like to ask that 31:07 31 minutes, 7 seconds impacted profitability despite the revenue growth sir we have already discussed uh this uh 31:15 31 minutes, 15 seconds last year we have done a uh investment lot of investment into in this IPO process that is the thing so that's why 31:22 31 minutes, 22 seconds we have did this and uh future now we spend a lot of money into in this technology AI and this uh you know 31:29 31 minutes, 29 seconds internal process so we expand this uh so we have committed to 7% that is the reason yeah okay okay so more investment in AI 31:38 31 minutes, 38 seconds will definitely increase uh profitability yeah yeah yeah definitely we are into in that place once we implement 100% AI we 31:46 31 minutes, 46 seconds target this 27 key we complete our uh 100% investment into technology maybe you know uh 20% will be remaining 31:54 31 minutes, 54 seconds because every time uh tech is need a new uh you know coming of technology then we have to adop but basic function we have 32:03 32 minutes, 3 seconds completing this year only and 30% we have already completed and we have live our VRA AI uh that is uh you know VI 32:12 32 minutes, 12 seconds especially for this uh helping to the candidate for a placement this is already lived and this is into our website only 32:20 32 minutes, 20 seconds okay okay and we have already lived our uh app also where we vi is you know also advice to the uh candidate to how to either the 32:29 32 minutes, 29 seconds candidate is fer or either a candidate can experience. So this AI will guide to the hiring process and this is our first 32:37 32 minutes, 37 seconds uh very big project that we have already lived. 32:40 32 minutes, 40 seconds Okay. So as you just mentioned uh that means most of the investment will get completed by this year means FI2 definitely completed by FI28. Correct. 32:49 32 minutes, 49 seconds Yeah. Yeah. Yeah. 32:51 32 minutes, 51 seconds Uh okay. Okay. uh what is the current uh revenue mix between the staffing or uh recruitment if you talk about or payroll 33:00 33 minutes management or compliance and services as well and RPO and enter uh as well uh how do you expect this mixed evolves what 33:09 33 minutes, 9 seconds the question sir mixed involve because we are not focused on the uh RPO we we do this staffing we 33:18 33 minutes, 18 seconds do this RPO process we do this hiring also so we complete solution And we we create a one umbrella where you can find 33:26 33 minutes, 26 seconds out everything either is related to recruitment, either is related to uh temp staffing, either is related to government business or either is related 33:35 33 minutes, 35 seconds to recruitment process outsourcing or either it's related to payroll processing everything you can find out in the singular umbrella. 33:43 33 minutes, 43 seconds Compliance services as well sir. Compliance. 33:45 33 minutes, 45 seconds Yeah. Yeah. Yeah. Definitely compliant services and apart of this we have provided the client side to our 33:52 33 minutes, 52 seconds attendance payroll mechanism system also. Now our app has been live. There is an white force and we have an white force payroll plus attendance mechanism 34:01 34 minutes, 1 second also. If candidate cannot candidate can find out their live location where the candidate is working and this candidate has been everything. Suppose there are 34:10 34 minutes, 10 seconds people who are appoint 100 people and they need some monitoring of their 100 people. So we'll give you the everyday 34:16 34 minutes, 16 seconds morning start evening attendance whatever kind of thing anything related to sales either related 34:25 34 minutes, 25 seconds to their attendance mechanism or related to payroll management system we are into 100% live and we have this app based 34:32 34 minutes, 32 seconds process everything is in live and this is the value addition as of now we offering the free of cost to create a 34:40 34 minutes, 40 seconds more dependency to my clients into my system so that in future we can charge through app also and app based uh we 34:48 34 minutes, 48 seconds value added services in future this maybe you know next quarter after mid of this year we charging our value addition 34:56 34 minutes, 56 seconds services to the client as of now we offering a free of cost okay 35:04 35 minutes, 4 seconds question regarding the expansion part of the company so see see as the company has achieved good enough numbers and because of that the company has expanded 35:12 35 minutes, 12 seconds significantly across India if we talk like a thing. So, so sir are there any plans to establish overseas operations 35:20 35 minutes, 20 seconds or international? We we we yeah we are targeting uh despitely to this uh India 35:26 35 minutes, 26 seconds and this Europe government you know very well they have signed the one MU between the European country and Indian company 35:35 35 minutes, 35 seconds was there is in parliament uh this bill has been passed by the uh Europe government and Indian government maybe 35:42 35 minutes, 42 seconds this this quarter only. So they definitely we have an open chance to complete Euro and there is in Europe they cover up the large country like 35:51 35 minutes, 51 seconds London, Scotland and mother country and apart of this we have already applied our license also and most probably in 35:58 35 minutes, 58 seconds this quarter end yeah yeah we have received our license also in this uh this quarter only. So definitely we have started our operation to overseas also. 36:09 36 minutes, 9 seconds Okay. Okay. Okay. Okay. So there are definite plans. Yeah. Yeah. Definitely we are into pipeline key either this 36:17 36 minutes, 17 seconds quarter or maybe you know within next quarter if half of this year we have 100% our option has been started in overseas market. 36:25 36 minutes, 25 seconds Mhm. Okay. Okay. Okay. And the company see the company is actually targeting growth through the general surfing or 36:34 36 minutes, 34 seconds RPO services as well and geographical expansion as we just discussed about. So sir uh so yeah 36:41 36 minutes, 41 seconds yeah so which of the se segments will be the primary growth drivers over the next two years or four years as well 36:48 36 minutes, 48 seconds sir we don't want to in coming uh maybe you know this year we don't want to we are a staffing company we want to the 36:57 36 minutes, 57 seconds part of the uh organization where can organization need the support system of any either is related to their growth 37:05 37 minutes, 5 seconds and technology part kind of organization we change our vision as well as the process also support there's an organization who need a manpower who 37:14 37 minutes, 14 seconds need a future growth expansion who need the profitability and who need the support level of technology so we want 37:21 37 minutes, 21 seconds not to the outsource the HR we want to complete solution process where can company can identify their overall 37:29 37 minutes, 29 seconds growth strategy part so we know in the future we are not targeting only staffing we target something else apart of staffing related to their business 37:38 37 minutes, 38 seconds expansion, profitability and tech parts to we complete as a techdriven organization and we are into that stage 37:46 37 minutes, 46 seconds in this next year maybe after completing this 27 we are not a staffing company we are a complete technology based company 37:53 37 minutes, 53 seconds that is and tech company where you have a problem we provide the solution that is either is related to manpower either 38:00 38 minutes is related to HR or either is related to your organizational growth system that is our core vision 38:08 38 minutes, 8 seconds Okay. Okay. So, okay. So as you just mentioned that apart from stubbing so uh so so are there any specific segments 38:17 38 minutes, 17 seconds that you would like to mention by taking specific names or of couples uh couple of couple of segments tool segments. We 38:25 38 minutes, 25 seconds we we we are very much strong our vision into in this data center and we are very much growth into in this EV segment and 38:35 38 minutes, 35 seconds we are very much strong into in this uh uh new uh this petroleum replacement of this LNG as well as the new technology 38:44 38 minutes, 44 seconds and solar vision system where solar can replace to this fuel. So definitely we are more into in this new technology 38:52 38 minutes, 52 seconds based uh like company where they have used their solar system as well as the EV system and uh that battery uh can 39:01 39 minutes, 1 second replace to a multiple things. So we are into focus on the automo and there is some kind of robotic technology who can 39:09 39 minutes, 9 seconds adopt by the Indian people also and future also. So we we are very much strong into this robot technology. Okay. 39:18 39 minutes, 18 seconds And in future we are also part to involve our facility management service this technology so that uh this manpower 39:25 39 minutes, 25 seconds has been placed uh and this robot can you know use this process that is our reason. 39:32 39 minutes, 32 seconds Okay. Okay. Okay sir. Thank you for all invol and uh just last two questions from just two more questions sir. Uh so 39:41 39 minutes, 41 seconds uh sir see uh uh your revenue from the other segment grew significantly in FY26. 39:48 39 minutes, 48 seconds So you're saying and so uh so can the management break that down into uh lucky ducky industries driving that growth 39:57 39 minutes, 57 seconds any uh any breakup of that if possible. 40:02 40 minutes, 2 seconds As of now we cannot say that uh complete breakoff. 40:07 40 minutes, 7 seconds Sorry but we are into uh can you repeat your question what exactly you want to ask? Sure. Sure. Uh sir my question is 40:17 40 minutes, 17 seconds can the management uh provide the breakdown of the industries that drove the uh drove this 40:23 40 minutes, 23 seconds road any any break of that other segment? I'm talking about other segment 40:30 40 minutes, 30 seconds other se other segment apart of this uh that we have already working or what exactly 40:38 40 minutes, 38 seconds other segment that are already that are already working it I mean to say h we are already working this large corporate 40:47 40 minutes, 47 seconds as well as the PC and the defense technology and defense company we have you see there is a major uh business revenue come from the both sides 40:55 40 minutes, 55 seconds previously we are into 70% into the large corporate but as of now this we are into that stage this 40% into 41:02 41 minutes, 2 seconds government business and 60% into this uh large corporate but this year you see this 50% of both industry either in 41:10 41 minutes, 10 seconds government and large PC as well as the large corporate and the new startup okay okay thank you sir and just last 41:18 41 minutes, 18 seconds one so what shall be the key milestones that investors should track over the next 18 months if I talk about in terms 41:26 41 minutes, 26 seconds of client additions, staffing, deployment and technology additions as well and the profitability as well. Most important. Yeah. Yeah. We are the first 41:35 41 minutes, 35 seconds company in the India market who using the uh you know uh AIdriven uh system hiring process. Uh and we launch our V 41:43 41 minutes, 43 seconds AI. No other company is uh launched there any kind of AI product. We launched this VI there isn't first 41:50 41 minutes, 50 seconds debut. We already into this AI technologydriven process. this ATS and software mechanism we cannot pay any 41:58 41 minutes, 58 seconds kind of single money to the outside of vendor everything is technology developed by our in-house team only and 42:04 42 minutes, 4 seconds we have an strong uh uh IT uh team where who will be develop this process there is first reason second reason we are 42:13 42 minutes, 13 seconds creating this both 50/50% some our large competitor is depend on the large 42:20 42 minutes, 20 seconds corporate only but we now on and there's some competitor who are into in government business only but in you see 42:27 42 minutes, 27 seconds our books we are the only company who will be targeting this 50/50% of the business. Second thing third thing sir 42:35 42 minutes, 35 seconds we are uh in future we are not only an staffing company we are the complete solution provider company who provide the complete solution related to this. 42:45 42 minutes, 45 seconds So we don't want to create our uh hands to say key we are the only staffing company. We are uh creating a technology 42:53 42 minutes, 53 seconds and that based we we are into tech based company and that is the thing we develop our in-house uh training model also as 43:01 43 minutes, 1 second well as the uh this course also where we we provided the right process. So these are the uh three major milestone and no 43:10 43 minutes, 10 seconds one can focus on that way. And this is a fourth important topic. Some already our major competitor who stayed in this 43:18 43 minutes, 18 seconds market they are into a kind of elephant and we are in that stage where we are into in this you know very small uh 43:27 43 minutes, 27 seconds play. So we have an enough time to create on and reach of that level that is the thing. Okay. Correct. Correct. Okay. Okay sir. 43:35 43 minutes, 35 seconds So that was it from my side for now. 43:37 43 minutes, 37 seconds Thank you so much for all for the information provided and all the very best for the future as well. Thank you sir. 43:42 43 minutes, 42 seconds Thank you. Thank you very much. Thank you very much. Yeah. 43:46 43 minutes, 46 seconds Thank you to ask a question. Ladies and gentlemen, you may please press star and one on your touchstone telephones. 43:53 43 minutes, 53 seconds Our next question comes from the line of Raful Javad, an investor. Please go ahead. 43:59 43 minutes, 59 seconds Hello sir. Can management share any details about the current deal pipeline? 44:04 44 minutes, 4 seconds Are there any significant contracts or client mandates under discussion that could materally impact financial year 27 performance? 44:13 44 minutes, 13 seconds Yes sir, we have already discussed uh previously also we are into the very 44:19 44 minutes, 19 seconds strong pipeline of 21 cr rupees of work order single work order from through Rajasthan government and we received 44:27 44 minutes, 27 seconds this work order within a 15 days of time. A part of this we have a very strong pipeline of more than 15 cr rupee 44:34 44 minutes, 34 seconds of work order that would be the mutilized maybe you know this July uh first week or maybe you know next week may the middle of or maybe you know last 44:42 44 minutes, 42 seconds July 15 cr rupees of work order so you'll say this 36 cr rupees of work order we have received within a time 44:50 44 minutes, 50 seconds period of uh 50 days or maybe you know 60 days only. 44:55 44 minutes, 55 seconds Okay. And one more question. Given uh the rising wage involvement, how much pricing power does the company have to pass on increase employee cost to 45:04 45 minutes, 4 seconds clients and what impact could this have on margins? 45:09 45 minutes, 9 seconds Sir, we target to adopt our inhouse AI into the hiring process. So we are not 45:16 45 minutes, 16 seconds uh you know focused into the normal uh staffing company who do this recruitment 45:22 45 minutes, 22 seconds business uh through the manual based. we are already using a 30% AI tools and in 45:29 45 minutes, 29 seconds future we are into at a stage where the 50% work done through the AI and 50% done work through the manpower involvement. 45:39 45 minutes, 39 seconds Okay. Okay. Thank you sir. Thank you. 45:43 45 minutes, 43 seconds Thank you. We have no further questions ladies and gentlemen. I would now like to hand the conference over to Miss Duby for closing comments. Over to you ma'am. 46:01 46 minutes, 1 second Miss Ruby, your line has been unmuted. 46:03 46 minutes, 3 seconds You may proceed with any closing comments. 46:26 46 minutes, 26 seconds On behalf of Happy Square Outsourcing Services Limited and Equidex Advisors, I would like to thank everyone for taking the time to join today's conference 46:34 46 minutes, 34 seconds call. Should you have any further queries, please feel free to connect with us at info@ equipex.com. Thank you everyone. 46:43 46 minutes, 43 seconds Thank you. Thank you very much. Thank you everyone. Have a good day. 46:49 46 minutes, 49 seconds Thank you. On behalf of Equidex Advisors Private Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines. 46:59 46 minutes, 59 seconds Thank you everyone.