KPIT Technologies Ltd — Q4 FY26

KPIT Technologies Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=EqnUfTP3ooQ Published: 6 days ago

0:01 1 second Hello and uh a very warm welcome to everybody for this KPI technologies uh analyst meet. Uh as we do always we will 0:09 9 seconds have the presentations by the KPI leadership team and then we'll have this uh open for Q&A from all of you. So uh 0:18 18 seconds since today we have an extended management team uh present uh the we will do a small introduction of uh who 0:25 25 seconds is present here from KPI leadership which would be done by Priya Hartikar. 0:29 29 seconds Uh Priya herself is a part of the leadership team. She's our CFO and a part of the executive board member uh executive board and she handles 0:37 37 seconds obviously as being a CFO all the accounting auditing legal taxation uh investor relations compliance uh all 0:45 45 seconds of these are under her. So now I would request Priya to please come over and introduce the leadership team and once again thank you for joining us on this meeting. 1:00 1 minute You Sunil and very warm welcome all of you. I'm happy to introduce uh my colleagues to with you. I mean I'm sure 1:07 1 minute, 7 seconds you know most of them. Uh Mr. Kishor Patil co-founder, CEO and managing director. Kishor as you know has led the company's transformation into global 1:16 1 minute, 16 seconds mobility technology partner. He has been and continues to shape KPIT's long-term strategy across mobility, software and automotive innovation. 1:27 1 minute, 27 seconds Mr. Sachin Tekkar, president and joint managing director. Suchin drives KPIT's growth agenda and client relationships. 1:35 1 minute, 35 seconds He helps he plays a key role in scaling KPIT's presence across the markets and strengthening strategic OEM partnerships. 1:44 1 minute, 44 seconds Mr. Anup Sabre wholetime director and chief operating officer. Anup oversees KPIT's technology visioning execution delivery excellence and execution rigor. 1:55 1 minute, 55 seconds He focuses on full stack tech that will help OEM transform their road maps and bring excellence in their performance. 2:02 2 minutes, 2 seconds Mr. Chinmai Pandit whole time director and head of Americas. Chinmai leads KPIT America's business and strengthens 2:10 2 minutes, 10 seconds strengthening OEM relationship and expanding regional growth. He focuses on market development, client trust and 2:17 2 minutes, 17 seconds strategic execution. Mr. Pushpahas Zoshi, head of strategy and growth office. Member of executive board 2:24 2 minutes, 24 seconds Pushpahas has led capit strategy growth initiatives and new mobility businesses. 2:30 2 minutes, 30 seconds He drives portfolio expansion across the connected products, digital mobility and strategic market development. Mr. Omar Pans, CTO, chief technology officer. 2:41 2 minutes, 41 seconds Omar leads KPIT's global technology vision, softwaredefined vehicle strategy. He also drives next generation 2:49 2 minutes, 49 seconds e architecture, SDV platforms and mobility technologies across the domains. Mr. Goro Kakati, chief technology officer, AI. 2:59 2 minutes, 59 seconds The buzzword go heads KPIT's AI strategy focusing on generative AI agentic solutions and AIE transformation of 3:08 3 minutes, 8 seconds automotive software life cycle. He brings deep expertise in enterprise AI automation and innovation. Thank you everybody and welcome once again. 3:19 3 minutes, 19 seconds Over to you, Kishor. 3:35 3 minutes, 35 seconds Good afternoon and very happy to really welcome you. after a long time we are having this gathering and I I really 3:43 3 minutes, 43 seconds missed it for last few years and I'm I'm h so happy that we are doing it at a time when there are many questions we 3:49 3 minutes, 49 seconds need to answer I think uh so uh great to have you all here 3:56 3 minutes, 56 seconds uh so this is uh basically as we call it the next phase of transformation and growth 4:03 4 minutes, 3 seconds uh KPI is always uh trying to consolidate and grow and further its uh 4:10 4 minutes, 10 seconds uh thought leadership as well as the market leadership in the areas in which we operate basically mobility and uh 4:18 4 minutes, 18 seconds that's why we will start uh I I think I'll give you some overview about this uh first I will very quickly for you all 4:26 4 minutes, 26 seconds have seen the results but you know I I would uh quickly take you to FI26 performance market trends and KPI 4:35 4 minutes, 35 seconds response I think this is the part I will cover an will talk about techn technology mode. What is the differentiation of KPIT in multiple ways 4:44 4 minutes, 44 seconds for future uh today and future? Suchin will talk about the resilient growth. Uh there are many questions about the 4:51 4 minutes, 51 seconds industry is that how we are expanding the overall market. Uh how we would like 4:58 4 minutes, 58 seconds to m do this in spite of disruptions in uh industries or beyond global uh global 5:06 5 minutes, 6 seconds environment. And uh then of course I will come and talk about midterm outlook. 5:12 5 minutes, 12 seconds Uh I know some of you want to do it the other way but I think it is best this. 5:26 5 minutes, 26 seconds So uh I think this all you have seen u it has been um u um our a bit of a muted 5:36 5 minutes, 36 seconds growth year but u but ultimately we had a good Q4 I 5:42 5 minutes, 42 seconds think uh we had a growth of 1.8% 8% constant currency 1.9% quarteronquarter growth in terms of dollar 5:51 5 minutes, 51 seconds in terms of uh rupee it basically it's a uh growth of 12% and uh quarteron quarter rate it is 5.8%. 6:02 6 minutes, 2 seconds Uh the the key highlight if you want to ask me is the 349 million worthments closed 6:10 6 minutes, 10 seconds during the quarter. It basically says that there is the the number of deals the number of engagements we have signed 6:18 6 minutes, 18 seconds and we have of course announced couple of them specifically I will cover them later uh so that is very important 6:26 6 minutes, 26 seconds pipeline continues to be satisfactory important part is the solution and products that's our next p and we'll talk about it what does it actually mean 6:35 6 minutes, 35 seconds what it means uh to us what it means to our client how do we differentiate it it's a 21% of the total pipeline is 6:42 6 minutes, 42 seconds already into products and solutions. So it will it basically gives us a very encouraging 6:48 6 minutes, 48 seconds sign. Uh I mean cash generation has been very good for the company over many years. It continues to be that uh 6:57 6 minutes, 57 seconds dividend payout uh after dividend payout it is 9.6 billion cash at the quarter end and we have the final dividend which is 5.25 per share. DSO stood at 47 days. 7:11 7 minutes, 11 seconds Uh dividend is about 33% uh uh kind of a uh payout. 7:20 7 minutes, 20 seconds If you look at the revenue the little going little down 18% year on your growth in trucks and off highway. So as 7:28 7 minutes, 28 seconds you know last year we decided that we will expand into truck and off highway 7:35 7 minutes, 35 seconds you know as a segment. uh and uh now it is 18% growth year on year in trucks and off highway and the Q4 growth was also 7:44 7 minutes, 44 seconds uh led by trucks and off highway 11.6% and the second was cloud-based connected services. So these are the some of areas 7:54 7 minutes, 54 seconds uh where we saw that detail part about the growth setting we'll talk I'm just talking about the highlight of this quarter and overall 8:02 8 minutes, 2 seconds and um Iita growth margin is for the year 20.8% and for this quarter 20.6%. 8:12 8 minutes, 12 seconds I must say tell you that uh what we have never compromised is uh on the investments in technology because we 8:20 8 minutes, 20 seconds believe that is the core of KPIT that's the core of future and that's what we will continue to do it most of the 8:27 8 minutes, 27 seconds companies have one less than 1% investment into technology we have done more than 3% for many years we have 8:36 8 minutes, 36 seconds upped the investments more than 5% and I think that is a very important But I would say that after doing that we 8:43 8 minutes, 43 seconds continue to have one of the best IATA number in the industry. 8:52 8 minutes, 52 seconds Let's talk about tailwinds uh as well as the headwinds. 8:57 8 minutes, 57 seconds So the growth is uh uh driven by connected vehicle powertrain vehicle engineering and after sales. I wanted to 9:05 9 minutes, 5 seconds say this little bit here. This is how the actual thing is uh this year. It is driven by all the four segments. So 9:13 9 minutes, 13 seconds connected vehicles we'll we'll see in terms of technology but is of course this is the area of the highest growth in the industry. One of the highest 9:20 9 minutes, 20 seconds growth in the industry. Uh power train also continues to grow. Now the power train is not is electrification. It's a conventional. 9:31 9 minutes, 31 seconds it's a hybrid and there are also pilots we are doing in terms of hydrogen based uh systems. So I think it's a it's a 9:39 9 minutes, 39 seconds more broader than pure electric but uh nevertheless we continue to do that uh grow even though naturally the growth is 9:47 9 minutes, 47 seconds not the highest in that in part but we are growing in that the vehicle engineering that this I wanted to bring it out uh this is a different part of 9:55 9 minutes, 55 seconds the acquisition we did in the caroft uh you know last year that actually we double down on that beyond software the 10:02 10 minutes, 2 seconds reason is we wanted to make sure that we are in a question to address one of the 10:10 10 minutes, 10 seconds key point of pain for our OEMs which is cost reduction and if you when you look at the cost reduction it is not about 10:19 10 minutes, 19 seconds software but it is about overall cost of the vehicle and that's where Kerosoft has you know certain 10:28 10 minutes, 28 seconds uh certain competencies some some platforms with that we are in a better position to deliver that but more 10:35 10 minutes, 35 seconds importantly In the industry typically people have been doing the benchmarking which has been a more hardware benchmarking you 10:44 10 minutes, 44 seconds know the we we bring to it now software benchmarking which is really one of its kind which tells them in terms of how 10:52 10 minutes, 52 seconds the how the performance is going to be there how the security is going to be there. So these are some of the things which we are adding. So these are the 10:59 10 minutes, 59 seconds areas which continue to grow and uh last but not the least is after sales. This 11:06 11 minutes, 6 seconds is one of the fast growing areas for API and after sales is very important because OEMs are looking for sources of 11:14 11 minutes, 14 seconds revenue for them going forward. Uh and not at the point of sales but throughout the life of the vehicle and after sales has become a big area and I think that's 11:23 11 minutes, 23 seconds the area where we have uh build a very strong solutions and I think uh you will hear about it. 11:30 11 minutes, 30 seconds Uh it's a 9% year-on-year growth with OEM clients which has been our strategy. 11:35 11 minutes, 35 seconds We did have uh drop in certain part which uh just to tell you on a tier one revenues which has never been a focus 11:44 11 minutes, 44 seconds but whatever we had I think we actually there was a drop in that we have strengthened the China presence and two 11:53 11 minutes, 53 seconds new engagements with Chinese OEM. This is very important. It's not it's a very small part of our revenue but it is 11:59 11 minutes, 59 seconds important for us because China is is a is a big market. You know the second thing is it has different type of OEMs 12:07 12 minutes, 7 seconds than the traditional letter there is a possibility that Chinese OEM which already are you know entering into the 12:14 12 minutes, 14 seconds other markets and can take the market share also in other markets. So we want to make sure that we are successful in China. It's not the easiest market. It 12:23 12 minutes, 23 seconds will take time but let me tell you we have spent time and effort and now we have two clear Chinese OEM engagements 12:30 12 minutes, 30 seconds which uh even though the revenues are not that great. I'm very proud about it. 12:34 12 minutes, 34 seconds Uh and 18% yearon-year growth in touch and offway I mentioned and accelerated pipe generation in AI infused solutions 12:43 12 minutes, 43 seconds and products. So that is uh that's this is the focus area and this is how we did 12:49 12 minutes, 49 seconds last year. uh in terms of headwinds a transformation led to near-term cannibalization in some areas uh in some 12:57 12 minutes, 57 seconds cases but over the period not over the period we see a larger opportunity with AI based solution but in sometimes in 13:06 13 minutes, 6 seconds the short term in a in a particular case it can cannibalize a particular part but over the long term we see that we are in a position to take end to end and that's 13:15 13 minutes, 15 seconds why we are moving towards the solution taking the full ownership of the solution and actually It adds to the revenues and lower than expected growth 13:24 13 minutes, 24 seconds in middleware and autonomous driving and one of the important reason for this is 13:30 13 minutes, 30 seconds uh uh many ar new architecture programs have been delayed and that's why some of 13:38 13 minutes, 38 seconds the middleware or you know the corics or some of those companies actually that got pushed out many of these programs 13:45 13 minutes, 45 seconds and we uh our revenues have come down on that area and autonomous driving. Uh the game has a little bit changed and I will 13:53 13 minutes, 53 seconds show you it is one of the high growth area going forward. Uh and uh there is a better adoption of this area. The only thing is the way it is there. Earlier 14:02 14 minutes, 2 seconds all OEMs wanted to develop their own stack and they realized that they failed in that and they could not do it. So it 14:09 14 minutes, 9 seconds is more about really integration. It is more about how do you really train that and how do you build on the stack. So 14:17 14 minutes, 17 seconds these are the some of the things which we need to do. So there is a different approach and there are some demos you can see later uh you will see it. So I 14:26 14 minutes, 26 seconds think that is there there and last but not least there were in few accounts there was a program cancellation and 14:34 14 minutes, 34 seconds delays in few accounts and I will talk about it later. 14:39 14 minutes, 39 seconds So it challenged near-term growth but expanded foundation for substantial future expansion. I must tell you that 14:46 14 minutes, 46 seconds what we have achieved last year is one of the best we have achieved in last many years in terms of qualitative 14:53 14 minutes, 53 seconds progress both in terms of changing the complexion of services taking the lead in terms of AI 15:02 15 minutes, 2 seconds the products uh journey you know you know apart from solutions the products journey and uh also the markets where we have expanded so I think I'm very proud 15:10 15 minutes, 10 seconds about what we achieved uh and of course uh the leadership development which we have been in a position to achieve which is going to be a base for the future 15:20 15 minutes, 20 seconds growth not only for a year or two but going forward. 15:31 15 minutes, 31 seconds These uh these are the two strategic engagement we talked about. The important the reason I wanted to talk about is the many vehicle programs got 15:40 15 minutes, 40 seconds pushed out as I talked about but that is more in passenger car area but offhighway and commercial now are 15:48 15 minutes, 48 seconds looking to adopt into SDV or AI based software development right SD uh AIDV. 15:55 15 minutes, 55 seconds So I think uh uh this is one of the I would say one part one very important uh 16:03 16 minutes, 3 seconds engagement which we have won and that's why strategic value is more as more than only the value financial value. It's a 16:11 16 minutes, 11 seconds long-term partnership in excess of 50 million focused on large scale softwaredefined transformation. It is uh for this and for the next generation 16:21 16 minutes, 21 seconds machine platform. So this is called um SDV generally we call up here it is called SDM software defined machines. So 16:30 16 minutes, 30 seconds that and it is shift from legal legacy architecture to modular platform electronics and software architecture. 16:37 16 minutes, 37 seconds So I think this is important from that as such. This is the second thing is leading Japanese tier one and to deliver 16:45 16 minutes, 45 seconds deliver the next generation of digital cockpit. This is important because the way we are changing our way of delivering to the client and the 16:53 16 minutes, 53 seconds solutioning it is a platform which which is ours and we are delivering to multiple OEMs of the tier one through 17:01 17 minutes, 1 second this platform and right now we are engaged for three OEMs and it will go to five OMS. So I think that is how we are 17:09 17 minutes, 9 seconds delivering and these two engagements are important uh sorry two OEM programs underway more to SAS shortly. So this is 17:17 17 minutes, 17 seconds a very important part and um again here we have used all our experience of so many years and so many production 17:25 17 minutes, 25 seconds programs in digital cockpit area and also of course we have used a AI in terms of accelerated development 17:37 17 minutes, 37 seconds there are we I had some chat in formally people were asking about where the spend is and etc. Uh so first thing I must 17:45 17 minutes, 45 seconds tell you that this is only a limited part. I have just picked up a data for only automotive part and also outside 17:52 17 minutes, 52 seconds China because that is the data which is available. There is a beyond this there is a Chinese data spend. There is also 18:00 18 minutes of course this does not include offhighway commercial. This does not include microobility but still there is 18:07 18 minutes, 7 seconds a at least a you know the uh good representation of automotive uh spend and this is uh from 18:16 18 minutes, 16 seconds the McKenzie uh Jan 26 uh their their internal uh data which 18:24 18 minutes, 24 seconds they collected. If you really look at which are the pockets, they still I mean they're talking about 2x growth in 2030 by 2030 into into the spend R&D spend. 18:37 18 minutes, 37 seconds However, however, I will bring bring to your notice two things. If you look at the areas where they are going to spend, 18:44 18 minutes, 44 seconds one is the uh ADAS which is becoming three times the spend from now till 18:52 18 minutes, 52 seconds 2030. Adas is the largest spent area from that perspect in terms of growth and the second area if you look at it is 19:01 19 minutes, 1 second the infotainment and digital services that is there and e architecture it's a relatively uh smaller part but that is 19:09 19 minutes, 9 seconds again uh moving uh in a big way integration validation is existing it 19:17 19 minutes, 17 seconds cross many times it is across many spent area it's the largest area of spend anyway otherwise device. So these are 19:23 19 minutes, 23 seconds the some of the spent areas. Now we this will spend on gen uh gen 3 and 19:31 19 minutes, 31 seconds gen 4 programs. These are the architecture type you can look at. Now auto soft automotive software spend remains strong. That's the one thing I wanted to say. 19:41 19 minutes, 41 seconds Second thing I wanted to say that this is only as I again repeating it is only automotive part. This does not have off highway commercial. This does not have a 19:49 19 minutes, 49 seconds Chinese data and other things. And beyond electrification there is a high growth in other domains. So electrification is not the highest 19:58 19 minutes, 58 seconds spender. I just wanted to bring while I mentioned to you last year also we have grown into powertrain or propulsion 20:06 20 minutes, 6 seconds area. There are multiple shares. It is not only electrification which drives it but beyond that actually the spend is here and as you could see in the earlier 20:15 20 minutes, 15 seconds our highest growth was in infotainment connected and security. The second part I wanted to cover is in case of ADAS 20:23 20 minutes, 23 seconds this even though this spend is 3x. I must also say that this is not necessarily something to be available 20:32 20 minutes, 32 seconds market to us fully because of two reasons because this is where they the companies may source platforms from the 20:42 20 minutes, 42 seconds companies who have built a platforms and there are very few now because this includes billions and billions of dollars to really build a platform and 20:50 20 minutes, 50 seconds uh you know so so I think uh but as you know always the actually the validation 20:57 20 minutes, 57 seconds integration is uh simulation is a very very big part of it and that is always a very big part of any implementation and 21:05 21 minutes, 5 seconds that is what is available to us. I just wanted to explain to you from your understanding how how this looks like. E 21:13 21 minutes, 13 seconds architecture I talked about it. It it will go when the new vehicle programs will come. E architecture will become important. It is important for all of 21:21 21 minutes, 21 seconds our offhighway and commercial vehicles segment. 21:30 21 minutes, 30 seconds Now you all know about the uh trends but for a very quick tariff and geopolitical conflicts 21:38 21 minutes, 38 seconds EV policy changes in USA and Europe supply chain disruption rapid maturity 21:45 21 minutes, 45 seconds of AI technology impact on OEMs multi-billion dollar write off one of the question people asked is earlier we 21:54 21 minutes, 54 seconds had much more clearer view of how the growth will be in the next year 22:00 22 minutes and then little bit we have uh said that this are this is where there will be growth and this is where there may be uh 22:08 22 minutes, 8 seconds uh this there will be the programs will come to end one of the thing is uh we for one of our client and I'll 22:17 22 minutes, 17 seconds tell you it is a public news Honda uh they basically cancelled all their new platform programs and that had an impact 22:25 22 minutes, 25 seconds on us and it was very recently because it happened in in the April month and we for us to understand the impact it took took us 22:34 22 minutes, 34 seconds some time. So there are some things which happen and that's why we also decided that we'll have a more broad-based strategy which we have been 22:42 22 minutes, 42 seconds working it's not that we will work from now last two years and uh Sachin will of course talk about it then loss of market 22:50 22 minutes, 50 seconds share in China and growing Chinese presence in other market of the OEMs lost uh in European OEMs lost their 22:57 22 minutes, 57 seconds Chinese market ab drastically they and this is where they were making money also earlier luxury OEM s but I must 23:06 23 minutes, 6 seconds tell you that they are coming back to some extent even though their margins are less last few quarters there is a recovery in many of those but this is 23:14 23 minutes, 14 seconds what happened for large most of the part last couple of quarters it has come come then pressure of margins so even though they have grown the margins have gone 23:23 23 minutes, 23 seconds down and an R&D budget I told you about how it changes again I must tell you 23:30 23 minutes, 30 seconds that AI budgets is not considered in some terms of pure AI technology Naturally AI into those domains is 23:37 23 minutes, 37 seconds considered there but AI by itself is not naturally considered part of it and impact delay in vehicle programs I 23:45 23 minutes, 45 seconds talked about it most of the programs most of the programs are delayed it it 23:52 23 minutes, 52 seconds has a two impacts on it one impact is architecture part is something which got postponed which we have really positions 24:01 24 minutes, 1 second us well which will come to uh which is very important will come in handy and as I said it is also important for 24:08 24 minutes, 8 seconds offhighway commercial then the second part is integration revenues will increase actually I must tell you that 24:18 24 minutes, 18 seconds whatever we have a visibility my experience tells me that there will be in next 2 years a demand which we don't 24:26 24 minutes, 26 seconds see today which will come when the vehicle will get into actually the market because the integration problems 24:33 24 minutes, 33 seconds comes when actually it it the vehicle is launched. Right now many of these programs are delayed and at that point of time they need something which is a 24:42 24 minutes, 42 seconds proven uh partner and a solution. So that is uh the the both are the uh uh 24:50 24 minutes, 50 seconds impact of delay in vehicle programs near-term revenue moderation but robust outlook in medium-term early in softwaredefed machines for trucks and 24:59 24 minutes, 59 seconds off highway. I talk to you about that and traction in autonomous L3 L4 programs digital cockpit and after sales 25:06 25 minutes, 6 seconds and we made some see earlier we had made investments in after sales we made one investment into another company in 25:15 25 minutes, 15 seconds California uh right Helm last year I it's a small investment but the idea is actually to 25:22 25 minutes, 22 seconds build this kind of expertise so when we go for the integration we go for the you know implementation I think we we are in 25:31 25 minutes, 31 seconds a better position and also when off highway commercial when we are building the uh solution uh we can have a little 25:38 25 minutes, 38 seconds better preferred relationship with some of them while we work with all the all the stack provider it is not uh actually 25:46 25 minutes, 46 seconds we provide we we work with any stack provider so the ships are there 25:53 25 minutes, 53 seconds but midterm outlook remains strong so what has in the KPI response. 26:02 26 minutes, 2 seconds So this is something which we have been working already for 2 years. It's not something we are looking at it right now. First is faster growth with 26:11 26 minutes, 11 seconds solution products. We believe this growth we expect to be 30% on the this even though it's a small part as we said 26:19 26 minutes, 19 seconds initially we start with 20 25% we'll grow with 30% plus growth rate in these solutions and products. um expand into 26:29 26 minutes, 29 seconds adjacencies and new geographies and uh I I don't want to talk everything about it here but we are looking we already had 26:37 26 minutes, 37 seconds offway commercial which has been pretty successful for us we also have built a microobility and uh I don't have a clear 26:46 26 minutes, 46 seconds data but I can tell you that by 2032 it will be a very big part of the business micromobility and the new geographies uh 26:55 26 minutes, 55 seconds so we believe that we believe in India India growth story it will be number three market and I truly believe in next 10 years it could be number two market 27:03 27 minutes, 3 seconds in the world if you know we are on track so I think uh the m then middle east and 27:12 27 minutes, 12 seconds other market is there and of course Asia Vietnam uh China all these markets are there so new geographies 27:21 27 minutes, 21 seconds we have made strategic external investment of 400 million in Mandes and I will tell you later how it actually 27:28 27 minutes, 28 seconds stacks create the full stack story and how the technology investment so this is beyond the 5% I talk about this is so if 27:38 27 minutes, 38 seconds you really this these are not in included into the investments we have made into technology and that makes us 27:44 27 minutes, 44 seconds really the most preferred uh partner and I'm sure you have seen the quote from KAD CFO about this I mean he talks about 27:53 27 minutes, 53 seconds that they really know the game. So I think this kind of a experience this kind of a thing is come based on these 28:01 28 minutes, 1 second kind of a investments continued investment in R&D 5% which I said which is on top of this uh and this is a very 28:10 28 minutes, 10 seconds very important part as Gorav is here he we had when we started 28:17 28 minutes, 17 seconds a journey about few years about AI we actually had a separate organization 28:24 28 minutes, 24 seconds build this technology techology and then take it in the company. But so first is we build a core technology core stack 28:31 28 minutes, 31 seconds and we'll talk about it. So the product this is what we call automotive mobility or mobility intelligence product beacon 28:39 28 minutes, 39 seconds for AI first development integration validation. we are this this we use for two things one is AI infused solution 28:46 28 minutes, 46 seconds and also as a product because when a client will adopt it he it's his 28:53 28 minutes, 53 seconds employees will also use that so we will be in a position to license also the product we will also use it when 29:01 29 minutes, 1 second wherever we are delivering services so there are multiple flexibility in which we are doing here we have 29:08 29 minutes, 8 seconds tied up with some really um some of the tech companies and uh I think we had one 29:15 29 minutes, 15 seconds announcement from Microsoft uh part of this uh at the time of CS but there are few others so I think it's a very very 29:23 29 minutes, 23 seconds important part for us and the last but is ecosystem of complimentary partners because if we have to take the full 29:30 29 minutes, 30 seconds ownership we don't do everything but we have to build a plat a a 29:36 29 minutes, 36 seconds an ecosystem now if you know the China benefit over many other companies is uh countries is basically the ecosystem 29:45 29 minutes, 45 seconds which they have built. So if you drive your e ecosystem your innovation is fast you can give the full solution which is very important. So we have a clearcut 29:54 29 minutes, 54 seconds focus on ecosystem of complimentary partners whether it is semiconductor companies it is uh specialized tier ones 30:02 30 minutes, 2 seconds or uh special uh specialized software stack providers. So I think that's the kind of ecosystem which we are building. 30:09 30 minutes, 9 seconds So continuous rigor on what this will mean is continuous rigor on wallet share expansion and expansion into new 30:16 30 minutes, 16 seconds geographies and adjacencies. Uh we believe we have about 10 11% market share. I mean I have talked about it 30:24 30 minutes, 24 seconds earlier and we believe there is a much more headroom for us in terms of growing in the existing account. Beyond that 30:32 30 minutes, 32 seconds there are new accounts there. Beyond that there are adjacencies. So I think this these are the areas where we can uh really make but these are the 30:40 30 minutes, 40 seconds investments we have made that's what I wanted to come out these are the significant investments we have made u 30:47 30 minutes, 47 seconds as much important is people why I will tell you because the disruption is not only one time it will happen so we want 30:57 30 minutes, 57 seconds to build a really agile organization and this agile leadership is going to be very important important from the 31:05 31 minutes, 5 seconds mindset and whether it is even the AI adoption in the how you will use the AI 31:12 31 minutes, 12 seconds for the client apart from that overall how will you face different parts of uh the issues which may come whether it is 31:19 31 minutes, 19 seconds geopolitical or technical disruptions so it's a very important part and we 31:26 31 minutes, 26 seconds created we identified about 60 uh roles which are going to be critical very broad which are going to drive the 31:35 31 minutes, 35 seconds organization and this is the first batch where uh we are looked at about 40 31:41 31 minutes, 41 seconds people 40 roles where we we decid we we went through a exceptional program. This is completely designed by us with some 31:49 31 minutes, 49 seconds partners where we took all the PE team to China. They actually drove the vehicles. They actually went to the all 31:56 31 minutes, 56 seconds the OEMs. They went to the you know they had interactions with the government. 32:01 32 minutes, 1 second Then they went to California. Then they saw they went to Nvidia. They went to the university. They went to the AI 32:08 32 minutes, 8 seconds startups. They looked at it. And then um then we went to France and there we had 32:14 32 minutes, 14 seconds uh you know the university interaction. So this is from NCAD um 32:22 32 minutes, 22 seconds campus where we had some this also Mckenzie has been our partners for this two. So a very very rich program uh to 32:32 32 minutes, 32 seconds really change the mindset and look at the world differently. My one thing I will tell you my one take on that and which is very important for our industry 32:41 32 minutes, 41 seconds for KPIT and for India and that's why it is very important is if you take last 150 years 200 years history there's a 32:50 32 minutes, 50 seconds direct correlation between investment you make into technology and the growth you will have in future sustainable. So KPIT that's why continues to make that 32:59 32 minutes, 59 seconds investment which is very important to drive the growth for today and tomorrow and for future. So that is what it is 33:07 33 minutes, 7 seconds and I think this is as I talked about this AI engineers engine AI champions engineers research 33:14 33 minutes, 14 seconds partnership upscaling this is we we have basically building MTech PhD combined programs with the UN you know with 33:22 33 minutes, 22 seconds premier institute for research. I think this is all going to be very important for us going forward. So we are making a lot of investment into this area. This 33:31 33 minutes, 31 seconds is one area where we probably must be investing highest in this uh in in the ind industry again as much as the technology. 33:43 33 minutes, 43 seconds So this this has this uh investment we talk about proactive investment across chip to cloud as we talk about. So it's 33:52 33 minutes, 52 seconds a we I mean it it doesn't mean that we are only doing an acquisition and investing into this area but we have 34:00 34 minutes some work and then we actually complement it with some of the specialist player. So this chip it was a path partner e architecture it's a 34:08 34 minutes, 8 seconds technica middleware is a corix application is helm.ai AI cloud you can say endream and somit solution and these 34:17 34 minutes, 17 seconds are the horizontal which go across it is a caroft technique you know validation as I said validation is a large part of 34:24 34 minutes, 24 seconds the spend today and it's also something which is continuous and it is going to be very important because one part if 34:31 34 minutes, 31 seconds you ask for uh difference uh that why China can deliver a program in 2 years or less than two years versus four years 34:40 34 minutes, 40 seconds what people take is one of The thing where you can really reduce is time is the validation and that's where we have 34:48 34 minutes, 48 seconds some very very special offerings which you can see it later and uh recent is the cyber security uh sim motive again 34:57 34 minutes, 57 seconds it's a uh we believe that what was important to us is having a cyber security solution in the vehicle which 35:05 35 minutes, 5 seconds is being used multiple vehicle millions of vehicle as you know the carrier is a investor into this company So in folkswagen group there's millions of vehicle where cyotive solution is there. 35:16 35 minutes, 16 seconds So proactive strategic investment across all rare chip to cloud stack. 35:23 35 minutes, 23 seconds So now I come to Anup for the technology mode as we call what is that differentation? What is that KPI do is 35:31 35 minutes, 31 seconds doing in this area over to you. 35:48 35 minutes, 48 seconds Hi, good afternoon everybody. Can you hear me? 35:54 35 minutes, 54 seconds Okay. So uh uh you know every time we talk about KPI we 36:01 36 minutes, 1 second talk about software integration and uh you know many people might have question of what really is that 36:09 36 minutes, 9 seconds integration why is KPI keeps on talking about it so I'm going to talk more about that in terms of your understanding so 36:19 36 minutes, 19 seconds you know if you just focus on this part you know look at each car as a as a software component, right? So, uh if 36:28 36 minutes, 28 seconds each car is a software component, uh what happens is software developers design these components. That means they 36:36 36 minutes, 36 seconds have a car and they start riding on a very open free just freshly opened highway you know straight patch missing 36:44 36 minutes, 44 seconds link road and they go at 100 km/ hour and they think their component works 36:50 36 minutes, 50 seconds because it rides at uh uh 100 kmp and then this happens 36:57 36 minutes, 57 seconds you know they come to a junction largely unruly problem many software components come into picture each software 37:06 37 minutes, 6 seconds component the driver is different the the attitude is different the car capacity is different the condition of 37:14 37 minutes, 14 seconds the car is different and then this typically happens so this typically happens in any context in 37:23 37 minutes, 23 seconds an automotive automotive is a very complex machine uh it has got about 100 to 120 uh computers 37:31 37 minutes, 31 seconds uh five or six different types of networks. 37:36 37 minutes, 36 seconds Uh and all of these have to handshake with each other in real time because sometimes obviously when you press a brake you want the brake braking to 37:44 37 minutes, 44 seconds happen. Uh when you want to when you turn the steering you want the steering to turn and uh so there are real time issues there are safety issues. So 37:52 37 minutes, 52 seconds overall it's one of the most complex machines in the world. 37:57 37 minutes, 57 seconds Um the second thing is okay so if there is a complex machine what is 38:04 38 minutes, 4 seconds the problem right we we can scale up and solve all the problems u when you look at the latest uh 38:12 38 minutes, 12 seconds semiconductor uh technologies all of you must have heard about GPUs that are used in AI you would heard about Nvidia 38:19 38 minutes, 19 seconds Blackwell latest SOC's do you have an idea of how much it costs for that one single big chip 38:28 38 minutes, 28 seconds approximately $35,000 that is probably more than the cost of the car. 38:36 38 minutes, 36 seconds Now when you talk about uh giving infinite bandwidth in car that is not possible because you know I give you an 38:44 38 minutes, 44 seconds example the second bullet point talks about a uh $300 billion company let's say the sales are $300 billion margins 38:52 38 minutes, 52 seconds are very small $2.5 3% sometimes maybe 4%. So $7.5 billion of net margins and 39:00 39 minutes then let's say there is an opportunity of saving $10 per car and that you multiply by 10 million vehicles that becomes suddenly $100 million saving. 39:12 39 minutes, 12 seconds So a car company cannot think about even spending $1 more or even 50 cents more. 39:19 39 minutes, 19 seconds Negotiations are done for that per car. 39:21 39 minutes, 21 seconds So if you can reduce even $1 per car, that is a great opportunity for extracting that money in the bottom 39:28 39 minutes, 28 seconds line. And that is why a car is always a constraint environment. Everything inside the car is constraint. It is the 39:35 39 minutes, 35 seconds most optimized version. And when you want to do optimization, you get into situations like this. You get into 39:42 39 minutes, 42 seconds integration issues. And that is the real main work that we do in terms of making sure that the car is optimized very well 39:50 39 minutes, 50 seconds in terms of what it has to do. So most of the chaos that happens the programs get delayed. When you hear about delay in programs it because most of the 39:59 39 minutes, 59 seconds software engineers start driving at 100 kmp per hour and they soon hit a bottleneck like this and this bottleneck 40:06 40 minutes, 6 seconds is absolutely unresolvable and that is where we come into picture. And of course there is also complexity. Not 40:14 40 minutes, 14 seconds only it is to be optimized for that car, it is to be optimized for probably 15 different models of the car because you 40:21 40 minutes, 21 seconds can't keep on engineering differently for every single car. So some large OEMs who have huge number of models every 40:28 40 minutes, 28 seconds year they launch 10 15 different car vehicles car models is similar exactly the same component needs to exist inside 40:36 40 minutes, 36 seconds and then the scalability has to be up down sideways all those things are there. So it becomes even more complex because of that. So this is what our 40:43 40 minutes, 43 seconds real work on value addition to the customer is. So what do you do when uh integration problems happens? Of course 40:53 40 minutes, 53 seconds you can do something about it before it happens. So what what is the proactive way of handling it and then there is of course once you get into a problem what 41:01 41 minutes, 1 second do you do? You keep on finding the problems you diagnose the problems. You fix the problem. So there is something that after it happens. Now mind you the 41:11 41 minutes, 11 seconds traffic jam is very easy to see for very very very uh uh you know unskilled person to actually observe and find out 41:19 41 minutes, 19 seconds where is the bottleneck who's the who's the car who's actually blocking everything which truck is blocking it but in software you can't see anything. 41:27 41 minutes, 27 seconds So you have to observe by different ways and some of the things today demos today that we're talking about is actually talking about these observability. How 41:35 41 minutes, 35 seconds do we look into something that happens so fast? It is so critical from a real-time perspective. Microsconds are important. Milliseconds are important. 41:43 41 minutes, 43 seconds How do you observe these things? How do you find out the problems? And that is what what we do also. 41:50 41 minutes, 50 seconds Next question you might have and and I I had many questions before this session started. What is the AI impact? How does AI really help? Of course, AI helps. AI 42:00 42 minutes improves software productivity you know worst case 10 times best case maybe 50 times 100 times so what do you 42:09 42 minutes, 9 seconds do so that means you create a eight lane highway here there are six five and everybody drives very fast and again go 42:18 42 minutes, 18 seconds to the same bottleneck and hit it there okay so AI is a fantastic way for generating a lot of software so today if 42:26 42 minutes, 26 seconds you could generate uh you know 10 million lines of software, you'll generate 100 million lines of software and then you are left to finding 42:34 42 minutes, 34 seconds problems of 100 million lines of software inside the car. So the problem increases 10fold probably multiffold not just 10 because the order of magnitude 42:42 42 minutes, 42 seconds is not linear here. You are probably talking about power equations here in terms of complexity getting created. Okay. So that is what we do. 42:52 42 minutes, 52 seconds Now let me get to you. Uh again this is u uh you must have heard about software V. 43:00 43 minutes Okay. And if you look at this outer light purple thing it almost looks like a V. It is looking like a U more than a 43:08 43 minutes, 8 seconds V now. But that is actually the software V. But in a vehicle you you come from uh 43:17 43 minutes, 17 seconds a requirements V because even the requirements have to be validated. So you can observe that inside the big V there are these small V's and each of 43:25 43 minutes, 25 seconds these V's the left hand side of the V is called a development side and the right hand of the side of V is called the validation side. Okay so even the 43:34 43 minutes, 34 seconds requirements are validated. There's a way of validating a requirement. I write something I validate it. Is it ambiguous? Is it traceable? Is it uh 43:43 43 minutes, 43 seconds testable? If I write a requirement that is ambiguous it cannot be implemented. 43:47 43 minutes, 47 seconds If I write a requirement that is not testable, nobody can verify it is whether it is written correctly. Each of these V is important. Uh there is a uh 43:57 43 minutes, 57 seconds once I write the requirements, am I actually uh implementing the right platform? Is my network architecture correct? Is my system architecture 44:05 44 minutes, 5 seconds correct? What is my requirement? And what is my ver verification and validation for that? Then you come to something called as a feature 44:14 44 minutes, 14 seconds development. the the purple wheels that you have. Software developers do these features. 44:20 44 minutes, 20 seconds They write the features. They test the features locally. You know the the highway driving at 100 kmp. 44:27 44 minutes, 27 seconds And then you come to integration and regression. Then you come to the roundabout where traffic jams get created. This is a traffic jam. 44:37 44 minutes, 37 seconds This is how you need to first verify whether your platform is working. Then you keep on adding the features on top of it. And then you every time somebody 44:45 44 minutes, 45 seconds adds a new feature his feature has to be tested with 300 other features that already exist inside the car and they are actually handshaking discussing you 44:54 44 minutes, 54 seconds know exchanging data with each other in real time and sometimes this real time breaks sometimes something doesn't work. 45:02 45 minutes, 2 seconds So you'll see in your modern cars sometimes things don't work okay and they work they don't work 45:09 45 minutes, 9 seconds intermittently. You are lucky if it doesn't work consistently. Sometimes it doesn't work intermittently. Okay. And these are the integration problems that 45:16 45 minutes, 16 seconds we're talking about. And once everything is done then again there is a standard validation cycle. So you have things 45:24 45 minutes, 24 seconds that are tested in in labs and in labs there are two stages. One one is called a domain system uh hardware and loop 45:32 45 minutes, 32 seconds testing. Then you have a multi-dommain uh testing that happens. So car infotainment gets tested with uh ADAS 45:40 45 minutes, 40 seconds and then all of it gets tested with chassis. So it's called multi-dommain uh but it is in a lab and then you have mule vehicles. 45:50 45 minutes, 50 seconds I tried to simplify this diagram for you. It is not that simple. Okay. So it is very very complex cycle and then you 45:58 45 minutes, 58 seconds have a start of production and then you have an after sales uh section. So your car is in the field and your you need to be serviced and all those things need to 46:06 46 minutes, 6 seconds happen. So what at KPI we we have been doing for so many years and what we have done is you can take a look at different 46:15 46 minutes, 15 seconds coverage areas of KPI and let me explain. So on the top the orange color uh or whatever color that is uh there 46:23 46 minutes, 23 seconds are many ladies in the room closer to orange. So that is actually the platform approach. So there are 46:31 46 minutes, 31 seconds different platforms. Platforms are things that do most of the dirty work inside the car from a hardware 46:38 46 minutes, 38 seconds perspective but they are not as glamorous as the applications that you see in the front. So you have the applications are what serve the users 46:46 46 minutes, 46 seconds that is you who drive the car and the difficult part of what the applications should actually make happen inside are the platforms. Okay. So you have 46:54 46 minutes, 54 seconds platforms. Then we have beacon. The reds are all the AI accelerated work packets 47:02 47 minutes, 2 seconds that we would call it. I mean in terms of software. So you can see if you if you looked at this diagram I had done a left hand side and a right hand side. So you'll see the red uh occurring here. 47:14 47 minutes, 14 seconds This is the AI that is going to eat up the uh software development part the digital part. Then there is a little bit 47:20 47 minutes, 20 seconds of red here also the AI part here also because even when test verification is done large part of the verification to 47:28 47 minutes, 28 seconds be done is also software okay so validation also done and then you have I talked about what do you do 47:36 47 minutes, 36 seconds before what do you do beforehand everything that happens on the left hand side a good automotive platform a good AI infrastructure a good virtual 47:45 47 minutes, 45 seconds validation so if I do not have the hardware for testing how can I emulate simulate the hardware simulate the hardware whichever word you feel 47:52 47 minutes, 52 seconds comfortable with how do I actually simulate this hardware so that even if the hardware is not there and I still able to test the software that I write 48:00 48 minutes it's called virtual validation it's because it's virtual you're doing validation virtually then you have 48:07 48 minutes, 7 seconds actually real validation but you have to do it across the board even on the left hand side of this bigger V so this is a 48:14 48 minutes, 14 seconds development uh cycle and in that development cycle you're using AI, you're using virtual validation, you're using real validation and then you are 48:23 48 minutes, 23 seconds accelerating things using automotive platforms. Okay. And then you have a integration where you again have the 48:31 48 minutes, 31 seconds virtual validation platform playing a big role, the the the SDV uh uh benches playing a big role, the one that is in the back and then AI playing a big role. 48:42 48 minutes, 42 seconds And then on the actual validation side, it's the real validation that comes into picture. And then after you get into the 48:49 48 minutes, 49 seconds sales you have an after sales products that come into picture. Okay. So this whatever I have painted here is now the 48:57 48 minutes, 57 seconds portfolio that KPIT has in terms of what Kishor was talking about product and solutions. This is what we've been doing for last maybe four years or so. 49:08 49 minutes, 8 seconds from a beacon perspective I think um again there are questions uh and I don't think we have enough time to discuss in 49:17 49 minutes, 17 seconds detail but u if there is more interest and sunil can find that out we can have a separate session on this is what is 49:25 49 minutes, 25 seconds this AI why is this AI what is the difference between GPT and claude and uh you know deepseek and of course there is 49:34 49 minutes, 34 seconds difference there are difference little bit of differences nuances here and And then AI gets even more complex whether when you want to use AI as a 49:43 49 minutes, 43 seconds prototyping tool or when you want to use AI as a production tool. Production needs consistency. Production needs 49:51 49 minutes, 51 seconds repeatability. Prototype needs you know experimentation and fun. So when do you transform from experimentation 49:59 49 minutes, 59 seconds or having fun to doing some serious work in terms of repeatable and where repeatable things in automotive 50:06 50 minutes, 6 seconds repeatability is also bundled with concerns for safety that means stressability exists some regulations exists like ISO 26262 for functional 50:15 50 minutes, 15 seconds safety. So how do you encompass all of these and you might hear a few words uh that are happening right? Agents agents 50:23 50 minutes, 23 seconds are the way of actually organizing a model. A model is an LLM model. Agent is a way of organizing this model to do a 50:31 50 minutes, 31 seconds specific task. You might also hear about a word called harness. harness is actually used to extract a specific 50:38 50 minutes, 38 seconds thing from the agent model combination so that you are able to get what you really want to achieve at a scale at an 50:45 50 minutes, 45 seconds engineering scale. So what we have done is out of our experience that we have in automotive what we understand we are working across multiple domains and then 50:54 50 minutes, 54 seconds we took an early lead on AI in terms of how it is how it is expressing uh itself how the models are progressing and what 51:02 51 minutes, 2 seconds is the most optimum that our customers need from this in terms of putting up an enterprise together engineering uh 51:09 51 minutes, 9 seconds organizations are huge KPAT is a 13,000 plus people company doing only engineering for automotive How do you 51:17 51 minutes, 17 seconds organize 13,000 people together in terms of uh you know AI usage? How do you manage it? How do you how do you you 51:25 51 minutes, 25 seconds know address safety concerns? How do I make sure that my code actually doesn't leave KPI? How do I actually create tracibility? How do I track everything 51:33 51 minutes, 33 seconds together? So all these things bundled together are what beacon has right now. 51:38 51 minutes, 38 seconds And this is what we are using very effectively in terms of large scale implementations that we are doing for our customers on the most complex 51:46 51 minutes, 46 seconds programs. So when I talk about the traffic jams, the traffic jams are the projects start becoming bigger, complex, unpredictable in terms of when they will 51:54 51 minutes, 54 seconds get complete. And these are the problems that we are solving now. And we are becoming I mean we have customer uh uh 52:02 52 minutes, 2 seconds testimonials to tell us that we are getting better and better every day in terms of solving those problems. So this is what what our beacon I will not get 52:10 52 minutes, 10 seconds into details of what the features are etc because it can get more confusing but uh this is our way of addressing 52:17 52 minutes, 17 seconds large scale problems that need AI intervention and if you noticed the red color is everywhere. 52:25 52 minutes, 25 seconds Okay. What it means is there are places where AI can solve pure software problems but there are places where there is no software involved. There is 52:34 52 minutes, 34 seconds a lot of electronics involved, hardware involved. How are we actually putting all of this together through AI is what is called as a harnessing. I mean making 52:42 52 minutes, 42 seconds it work for the entire life chain is what we are trying to do and this is what we are getting good at. 52:51 52 minutes, 51 seconds Kishor mentioned about um um the the the inorganic effort the the companies the joint ventures that we have. So here we 53:00 53 minutes are talking about it's not just that it is also about an investment that we are making uh significant investment in 53:09 53 minutes, 9 seconds terms of creating technology. So if you look at the layers, these are the things that we have right now working in some 53:16 53 minutes, 16 seconds form or other in terms of customer and now we are supporting it with the AI harness that we have and what what it 53:23 53 minutes, 23 seconds basically means that when we look at typically uh a company that uh does some great work in a specific area uh let's 53:32 53 minutes, 32 seconds take for example Technica uh it is usually doing work with few customers and our advantage is that globally we work with many customers. So we 53:40 53 minutes, 40 seconds basically bring that expansion we try to understand how it can be expanded. We also try to look at how what what needs 53:49 53 minutes, 49 seconds to be done more in terms of making it happen. How do you scale it globally expand it globally across the markets that we have and this is the work that 53:56 53 minutes, 56 seconds we are currently doing and this is this is the one that we intend to expand in the next couple of years. 54:04 54 minutes, 4 seconds Again uh same slide looking at it from technology perspective. All the purples here are actually a result of all of 54:12 54 minutes, 12 seconds this work that we have done. The black is organic that uh KPIT has for last many years invested and actually 54:19 54 minutes, 19 seconds converted them into products or solutions that we are trying to sell. Okay. 54:25 54 minutes, 25 seconds Thank you very much. So I call upon Sachin. 54:39 54 minutes, 39 seconds All right. 54:41 54 minutes, 41 seconds So, first of all, you can all hear me. I I'm sure you can see me. I hope you can hear me too. Uh, 54:47 54 minutes, 47 seconds so in our company, uh, we have, uh, two functions, marketing and account management. Uh, there are about 150 54:56 54 minutes, 56 seconds people. Their primary job is to just translate what Anu presented to all of you to the purchasing organizations in 55:05 55 minutes, 5 seconds large OEMs. that's what they do essentially and to get them to pay us money for something they cannot touch and feel. So I just wanted to get that 55:13 55 minutes, 13 seconds out to all of you. Um what I'll try and cover is uh walk you 55:20 55 minutes, 20 seconds through our story over the last couple of years. Uh and this story is about uh you know when you when you see certain 55:28 55 minutes, 28 seconds things uh getting repeated then you wonder and you try and fix them in a systemic way. So we realize that the 55:34 55 minutes, 34 seconds these macro problems and micro problems are not going to go away. You know, first it was the pandemic and then there was the supply chain disruption and then 55:43 55 minutes, 43 seconds there were tariffs and wars and you know now there is AI all of that. So uh two years ago we said that we needed to build our organizations which will 55:52 55 minutes, 52 seconds become resilient uh enough to deal with this right at some point you have to say it is part of life and you have to build 55:58 55 minutes, 58 seconds your future uh based on resilience and that's really our story and let me cover some of that uh you know what is it that 56:05 56 minutes, 5 seconds we've been trying to do uh over the last two years I think we have made progress um but there were some unforeseen 56:13 56 minutes, 13 seconds punches along the way uh we continued to roll with the punches and continue to make progress um along these. So first 56:21 56 minutes, 21 seconds is uh uh you know those of you who attend our uh investor calls uh you know you hear 56:30 56 minutes, 30 seconds us talk about our T25 strategy you know 25 clients that we've been working with and um you know in all fairness bulk of 56:38 56 minutes, 38 seconds the growth that you saw of KPI phenomenal growth over uh the last four years it was mostly on the back of 56:46 56 minutes, 46 seconds uh and it was mostly what Anu just presented which was largely in vehicle software right but there is lot more to 56:53 56 minutes, 53 seconds KPIT um and that means now first step that we have to uh take that we've been 57:00 57 minutes taking is to look at every OEM and their relevant spend to us uh and see what does that mean and how do we go deep in 57:08 57 minutes, 8 seconds every client and expand uh in a wide way so we've been looking at wallet share uh for the last couple of years we know exactly where they spend and where they 57:17 57 minutes, 17 seconds are not likely to spend and how much they spend on us versus uh others and we've been doing it very diligently and 57:24 57 minutes, 24 seconds uh Kishor I mentioned this earlier on uh if you take the overall wallet share of KPI among our top 10 uh top 25 clients 57:33 57 minutes, 33 seconds is about 10% as of last year um that we grew by 10 to 12% yearonear now the goal 57:40 57 minutes, 40 seconds for this year is whether we can push that up to more than 25 uh 15 to 20%. So this is number one thing uh that we've 57:48 57 minutes, 48 seconds been doing. Um and essentially um we are doing it through these four uh points uh 57:57 57 minutes, 57 seconds that are listed out here. Uh one is cross practice offerings. Most of the things that you saw on the v cycle you can imagine that there are different 58:05 58 minutes, 5 seconds practices on k on the kpat side. There was a platform that you saw and then there are different domains whether it's um um digital cockpit or ads or body or 58:14 58 minutes, 14 seconds chassis right. So um bringing them collectively and solving larger problem of the client. So this is one thing that 58:22 58 minutes, 22 seconds we started to do uh for every client now um in a very conscious manner. The second part is u um all of the clients 58:30 58 minutes, 30 seconds have constraints too a they don't have the time and they don't have the money that they had few years ago. Um uh hence the solutions and products come in 58:39 58 minutes, 39 seconds handy. You know doing business in a linear manner just doesn't make sense anymore. Right. So how do we really increase nonlinearity for our clients so 58:48 58 minutes, 48 seconds that we can shorten the the the time frame and secondly also offer them uh cost cost-ffective solutions uh without 58:56 58 minutes, 56 seconds compromising our own margins. Uh that's the the second part that we've been talking about and the third thing is you 59:03 59 minutes, 3 seconds know what when you looked at the v cycle it's a very complex cycle because there are from the OEM perspective there are many parties that are involved in this. 59:13 59 minutes, 13 seconds There is the chip layer at the bottom then there are there is tier one there are cloud players and so forth. So it's a it's a complex ecosystem and what we 59:22 59 minutes, 22 seconds have realized is um if you have to solve the larger problem we have to work with alliances to solve the larger part uh 59:29 59 minutes, 29 seconds problem. So you heard about some of the conversations that we've been having with the chipmakers like uh Qualcomm um some of the tier ones that we partner 59:37 59 minutes, 37 seconds with. Kishor talked about one of the case studies earlier on. Um and last but not the least the u the cloud uh players 59:46 59 minutes, 46 seconds uh and this has become this is something that uh we need to do more of um you 59:54 59 minutes, 54 seconds know we've been uh a company that has been doing our own stuff and creating value for the clients. Uh working with other partners doesn't come naturally to 1:00:02 1 hour, 2 seconds us. So that's something that we need to uh get better at but that's something that we've been very conscious about over the last two years and you know 1:00:09 1 hour, 9 seconds you'll hear more and more about uh KPIT working with uh some of the other partners to create greater value uh for the OEMs. So we believe that these are 1:00:19 1 hour, 19 seconds the three things that will help us to increase our wallet share uh substantially uh in the next uh couple of years. So this is step number one. 1:00:28 1 hour, 28 seconds Step number two is to take them take alternate business model. Doing the business the same way just doesn't make sense anymore for the most of the OEMs. 1:00:37 1 hour, 37 seconds Um so first thing we have done is we we had quite a few time and material engagements with the clients and what 1:00:44 1 hour, 44 seconds you'll see in our uh financial results if you watch them uh quarteron quarter over the last couple years there is substantial shift from time and material 1:00:53 1 hour, 53 seconds to fixed price. uh that's something uh and this year also we have made uh significant stride towards uh fixed 1:01:00 1 hour, 1 minute price then and and the reason to get to fixed price was unless it's fixed price or outcome based we cannot really apply 1:01:07 1 hour, 1 minute, 7 seconds our solutions especially that are infused by AI in order to create value so this is the first step towards it what we have done is more than 80% of 1:01:17 1 hour, 1 minute, 17 seconds our new contracts are fixed price in nature uh that's something that some we have driven um very diligent ently over 1:01:24 1 hour, 1 minute, 24 seconds the last couple of years. Um and um we are also in the process of converting 1:01:31 1 hour, 1 minute, 31 seconds our existing contracts that are time and material into and this is this is probably the harder part you know winning new programs that are outcome 1:01:40 1 hour, 1 minute, 40 seconds based is easier than something that you've been doing with a client for many years. So that's something that we have embarked on. We'll be converting four of 1:01:47 1 hour, 1 minute, 47 seconds our largest clients in that model in in in this quarter and we'll take the next four uh in the next quarter and that 1:01:54 1 hour, 1 minute, 54 seconds will pretty much take us uh north of 75% overall in terms of having outcome based 1:02:00 1 hour, 2 minutes and fixed price. Um the second part is uh uh there are five products that we 1:02:07 1 hour, 2 minutes, 7 seconds have and we see tremendous growth in all of these five products in the immediate future. Um and for those products we 1:02:15 1 hour, 2 minutes, 15 seconds have to look at different licensing models that make sense uh for the clients as well as for us. So that's something that we are doing and the last part I already talked about you know the 1:02:23 1 hour, 2 minutes, 23 seconds services uh they need to be in excess of 80% uh in terms of our contracting the nature of contracting that we have with 1:02:31 1 hour, 2 minutes, 31 seconds the clients. So step number one go deep and wide in our existing T25 clients. 1:02:38 1 hour, 2 minutes, 38 seconds Step two, um we've been talking about expanding. Uh we've been very careful about adding new clients because we wanted to make sure that we do justice 1:02:47 1 hour, 2 minutes, 47 seconds to the existing clients go deep and wide before we can add more clients. We have now built enough muscles um and AI 1:02:57 1 hour, 2 minutes, 57 seconds solutions and products do help us substantially. Um so unlike any other year in the past, we added 13 clients. 1:03:05 1 hour, 3 minutes, 5 seconds That's a big thing for a company like KPIT uh who's been very diligent about not adding clients and they come across the three segments that we talk about. 1:03:15 1 hour, 3 minutes, 15 seconds We've been talking about for the last two years we started to talk a little bit about trucks first and then we started to talk about off highway. Um 1:03:22 1 hour, 3 minutes, 22 seconds very happy to say that we have added four truck OEMs um to our list of clients. Initial engagements um and they 1:03:30 1 hour, 3 minutes, 30 seconds take time because we want to get into them in a strategic manner rather than getting into a dog eat dog kind of a world. So it takes time but we have made 1:03:38 1 hour, 3 minutes, 38 seconds the breakthrough in case of four. I think the success has been greater and we've been actually pleasantly surprised by the response that we got from some of 1:03:46 1 hour, 3 minutes, 46 seconds the offhighway players unlike the passcar companies and the truck companies. 1:03:51 1 hour, 3 minutes, 51 seconds some of the offh highway players are doing reasonably well. Um so you know they understand they have the money they 1:03:58 1 hour, 3 minutes, 58 seconds want to invest proactively and hence the timing is working out for us. We have added six uh offhighway OEMs across um 1:04:06 1 hour, 4 minutes, 6 seconds four different countries. Now initial engagement one of them is the big one that Kishor talked about earlier on with uh one OEM in in North America. Um and 1:04:16 1 hour, 4 minutes, 16 seconds for us I think this OEM is important and the assignment is important. We did a consulting assignment for them. Um and 1:04:25 1 hour, 4 minutes, 25 seconds uh based on that they awarded us awarded us with uh the current generation program and also the next generation 1:04:32 1 hour, 4 minutes, 32 seconds program of softwaredefined machine and this becomes sort of a playbook for all the others to follow in the offhighway 1:04:40 1 hour, 4 minutes, 40 seconds space. You know unlike passenger car where we we have learned to understand the business quite well. Not just the technology part but we really understand 1:04:48 1 hour, 4 minutes, 48 seconds their business quite well. Uh it takes time to understand the business of of highway because there are different applications. There is mining uh there 1:04:57 1 hour, 4 minutes, 57 seconds is agriculture um and there is construction right the three large components of uh of highway we are learning their business. uh so that 1:05:05 1 hour, 5 minutes, 5 seconds instead of going inside out which is oh this is what we do for Pascar and this is what we have to give it to you we are going outside in we're trying to 1:05:13 1 hour, 5 minutes, 13 seconds understand the business applications of their machines uh looking at you know what are the business KPIs and sort of 1:05:20 1 hour, 5 minutes, 20 seconds altering the softwaredefined um machines uh template for them so the first has be created a really good 1:05:28 1 hour, 5 minutes, 28 seconds playbook and it's the same playbook that we are going to replay to the other three that are in the pipeline now Right. 1:05:36 1 hour, 5 minutes, 36 seconds The second part is uh so this is uh the the growth strategy. Um there were three 1:05:45 1 hour, 5 minutes, 45 seconds Pascar OEMs um that are really good OEMs. Um they were not our clients. I think we have made breakthrough in all 1:05:53 1 hour, 5 minutes, 53 seconds three of them. They happen to be some of the largest OEMs in the world. Uh one of them in a very meaningful manner. The ear the other two early days but very 1:06:02 1 hour, 6 minutes, 2 seconds promising engagements. And once we hit all three of them, we would have covered almost all of the major Pascar OEMs outside of China. All of them bar none. 1:06:12 1 hour, 6 minutes, 12 seconds Right? So that creates our Pascar story a little more comprehensive. The three that we have added, they're a lot more 1:06:19 1 hour, 6 minutes, 19 seconds quote unquote resilient to the dramatic changes that are happening in the in the Pascar area, right? Uh they're feeling 1:06:27 1 hour, 6 minutes, 27 seconds less of the pressure as compared to uh some of the others. So I think that makes the Pascar portfolio a lot more 1:06:34 1 hour, 6 minutes, 34 seconds stable uh for us. Uh the trucks they've been going through a slump just the trucking industry mostly in North America and Europe has been going 1:06:42 1 hour, 6 minutes, 42 seconds through a slump uh for the last 9 months. Some of it is just seasonality, some of it is just political uncertainty. Um there will be a pre- 1:06:51 1 hour, 6 minutes, 51 seconds buying that will happen in the second half of uh 2026 and we believe that the truck business will pick up a little bit. The European market as well as 1:06:59 1 hour, 6 minutes, 59 seconds North America market is likely to pick up in the second half of um 2026 and truck market works in a very simple 1:07:08 1 hour, 7 minutes, 8 seconds manner right as soon as the the construction and everything starts to pick up their business picks up and that's when they start to spend money um 1:07:17 1 hour, 7 minutes, 17 seconds on companies like us. So we do believe that in the second half of the year uh the truck guys will also open up their wallets and embark on the 1:07:24 1 hour, 7 minutes, 24 seconds softwaredefined truck journey uh for the most part. 1:07:31 1 hour, 7 minutes, 31 seconds So essentially the composition of T25 is changing along with this uh a T25 is not 1:07:40 1 hour, 7 minutes, 40 seconds really T25 anymore. It's a lot more than that. And secondly T25 had most of the OEMs from passenger cars. Now uh the new 1:07:50 1 hour, 7 minutes, 50 seconds T40 will look lot more balanced across the three industry segments. Um the 1:07:57 1 hour, 7 minutes, 57 seconds three industry segments usually have three different cycles. So hopefully you know we'll be able to reduce the variability in our business and we'll 1:08:05 1 hour, 8 minutes, 5 seconds have little more you know uh far more balanced growth going forward. So this has become sort of our horizon one now 1:08:13 1 hour, 8 minutes, 13 seconds and here. Let's go deep and wide in each of these accounts and create tremendous value for them. Um the horizon 2 is 1:08:22 1 hour, 8 minutes, 22 seconds actually microobility. Micromobility uh we started working on it long time ago actually but we sort of decided to park 1:08:29 1 hour, 8 minutes, 29 seconds it in between for about six years and now we are reviving uh microobility because we do have the the the mind 1:08:36 1 hour, 8 minutes, 36 seconds share and the bandwidth to to make investments in uh micromobility and we're going to start micromobility uh 1:08:44 1 hour, 8 minutes, 44 seconds from India um and I'll talk a little bit about what does that uh entail uh in in the next slide Um 1:08:53 1 hour, 8 minutes, 53 seconds so um and the horizon 3 is what what will also cover you know this is uh horizon 1 is now and here horizon 2 1:09:01 1 hour, 9 minutes, 1 second microobility basically is for tomorrow what's in it for us uh you know there were some questions before uh we started 1:09:09 1 hour, 9 minutes, 9 seconds the session about whether we'll get into other areas of mobility like aerospace and locomotives and some of the others. 1:09:16 1 hour, 9 minutes, 16 seconds So you know we do have an answer for that uh for you as well. Um the third lever is actually growth 1:09:24 1 hour, 9 minutes, 24 seconds markets and focus. This is really important uh from our perspective and we'll talk first about India for India. 1:09:32 1 hour, 9 minutes, 32 seconds Um we are headquartered of out of India but our business in India has been very very low over the last 30 years. Um this 1:09:40 1 hour, 9 minutes, 40 seconds is going to change now starting this financial year. Um and there are three things about it. Number one, uh the India OEMs are truly becoming 1:09:49 1 hour, 9 minutes, 49 seconds competitive not only in India but by global standards. You've seen that. Um number two, the global OEMs have started to take India a lot more seriously and 1:09:58 1 hour, 9 minutes, 58 seconds they want to build India for India products. Uh here um some of them have started to see substantial loss in their 1:10:06 1 hour, 10 minutes, 6 seconds market share in China. India is the next big big market. So they're looking at for India for India. So that creates an opportunity for us. Third is there are 1:10:15 1 hour, 10 minutes, 15 seconds new comp there are uh companies in India conglomerates in India that want to get into Pascar business and the best way 1:10:23 1 hour, 10 minutes, 23 seconds for them uh the fastest way for them to get into that is to buy platforms from China. This is something that has started to happen. Uh we are involved in 1:10:32 1 hour, 10 minutes, 32 seconds about three different conversations about the same. It also creates an opportunity where we can bring a platform from China a car vehicle 1:10:40 1 hour, 10 minutes, 40 seconds platform uh from China and sort of uh help the India OEM get into production 1:10:47 1 hour, 10 minutes, 47 seconds faster and uh be the software and system integrator for all of them and validation what Anuk talked 1:10:55 1 hour, 10 minutes, 55 seconds about earlier on right uh to put the vehicle on the road. 1:11:00 1 hour, 11 minutes The uh last but not the least part is as Indian economy uh grows trucks and offhighway as the network of uh of 1:11:08 1 hour, 11 minutes, 8 seconds infrastructure improves uh trucks and offhighway will become more and more relevant and I think we are ready. Uh the name here is I think the traditional 1:11:16 1 hour, 11 minutes, 16 seconds services that we've been able to sell in in markets like Germany, North America and and Japan they are not going to be 1:11:25 1 hour, 11 minutes, 25 seconds the same here in India. So we'll drive growth through solutions and products as well. Um that's about India. The second 1:11:32 1 hour, 11 minutes, 32 seconds part is about China. We've been talking about our presence in China. We have had presence for more than 15 years. Two years ago, we decided to uh revamp and 1:11:42 1 hour, 11 minutes, 42 seconds um refresh the presence that we have with four objectives. Number one, go there to learn from China and bring those learnings to our global OEMs. 1:11:50 1 hour, 11 minutes, 50 seconds That's something that we've been doing. 1:11:52 1 hour, 11 minutes, 52 seconds Omar Anu both of them spend substantial amount of time with our team in China to capture those learnings and apply them uh for the OEMs outside of China. This 1:12:01 1 hour, 12 minutes, 1 second is step number one. Step number two is to work with our global OEMs who have presence in China and help them salvage 1:12:08 1 hour, 12 minutes, 8 seconds their market share. Um and I think there are going to be more and more opportunities. you see companies like GM 1:12:15 1 hour, 12 minutes, 15 seconds uh folkswagen group making a comeback to some extent in China uh by launching China for China vehicles uh you know 1:12:23 1 hour, 12 minutes, 23 seconds that are market ready. So um the second thing is to help them uh remain relevant in Chinese market. The third part which 1:12:31 1 hour, 12 minutes, 31 seconds I talked about in in context of India is to take China OEM platforms or help Chinese OEM become successful outside of 1:12:39 1 hour, 12 minutes, 39 seconds China. Um you all know there is uh uh there is intense competition. China is a 1:12:47 1 hour, 12 minutes, 47 seconds 30 million passenger car market and there are close to 100 OEMs after 50 that have gone bankrupt. So now we are 1:12:56 1 hour, 12 minutes, 56 seconds left with maybe 99. Um so it's a crowded space brutally competitive. Uh so the Chinese OEMs have no choice but to look 1:13:04 1 hour, 13 minutes, 4 seconds outside of China. And you know there is a role that KPIT can play uh to help them penetrate into some of the other specific markets. 1:13:15 1 hour, 13 minutes, 15 seconds That uh takes me to the third part which is Southeast Asia. Uh India, China now and here Southeast Asia is for tomorrow. 1:13:23 1 hour, 13 minutes, 23 seconds um whatever we will we we will build in India in terms of our offerings for micromobility uh we are going to take them as well as 1:13:32 1 hour, 13 minutes, 32 seconds our solutions uh to Southeast Asia and why do we bring up Southeast Asia because there are very few OEMs there are a couple of them in Malaysia one of 1:13:40 1 hour, 13 minutes, 40 seconds them is owned by Chinese there is one uh in Vietnam right it's not just about that uh China also is looking at 1:13:48 1 hour, 13 minutes, 48 seconds countries like Vietnam and Thailand as their gateway towards the rest of the world right so you'll see presence of 1:13:56 1 hour, 13 minutes, 56 seconds Chinese OEMs increasing in Vietnam and uh Thailand uh and that's why uh you know um we believe that our learnings 1:14:04 1 hour, 14 minutes, 4 seconds from India will be a lot more applicable uh to countries in Southeast Asia last but not the least uh we are not 1:14:13 1 hour, 14 minutes, 13 seconds just thinking about today and tomorrow we are also thinking about day after tomorrow and the next market the next horizon of a action and activity is 1:14:21 1 hour, 14 minutes, 21 seconds going to be in the Middle East and Africa Um and we are already thinking what does it mean? Uh right the the the the offerings that we have for the 1:14:29 1 hour, 14 minutes, 29 seconds developed world are different than the offerings that we have for India and China. Similarly the offerings for Africa are going to be very different 1:14:36 1 hour, 14 minutes, 36 seconds but they're going to be built on the back of the offerings that we'll create for India. So that's something that we'll look into um day after tomorrow. 1:14:45 1 hour, 14 minutes, 45 seconds So that's really from um geography perspective that's really our horizon three. 1:14:56 1 hour, 14 minutes, 56 seconds This is um um looking at adjacencies beyond the three segments that we talked 1:15:03 1 hour, 15 minutes, 3 seconds about. Uh number one, Pascar that uh you know more than 75% of of our business continues to come from Pascar today. 1:15:12 1 hour, 15 minutes, 12 seconds Second truck off highway picking up uh quite fast for us and we remain quite bullish. Um however we started to look 1:15:20 1 hour, 15 minutes, 20 seconds at micromobility and we have pushbas here uh he's running uh micromobility for us um we have sort of uh revived our 1:15:29 1 hour, 15 minutes, 29 seconds focus on microobility after taking a break for uh 6 years and this is about looking at two wheelers and three 1:15:36 1 hour, 15 minutes, 36 seconds wheelers and the last mile uh connectivity where uh the real opportunity is not only in terms of creating efficient propulsion and uh 1:15:46 1 hour, 15 minutes, 46 seconds vehicle engineering design uh but the afterale plat after sales products and solutions become very relevant to them. 1:15:54 1 hour, 15 minutes, 54 seconds Um so that's something that we uh started to work on. Uh we signed a partnership with Hero Motors uh recently 1:16:02 1 hour, 16 minutes, 2 seconds and that's our great way of really getting a firsthand feel for what does this look like and how we can take it uh 1:16:09 1 hour, 16 minutes, 9 seconds to others in India and beyond. Um the question now is what is deep tech? 1:16:15 1 hour, 16 minutes, 15 seconds Deep take is something that we are sensing and scanning at this point in time which is really our horizon 3. Um and this is where the rest of mobility 1:16:24 1 hour, 16 minutes, 24 seconds we are trying to see what are the areas uh where we have core competencies and how they can be made relevant uh to 1:16:31 1 hour, 16 minutes, 31 seconds these new areas. Now deep tech you can talk about robotics you can talk about aerospace you can talk about um space 1:16:39 1 hour, 16 minutes, 39 seconds tech any of these areas within the realm of mobility. We believe that many things that we do from technology perspective 1:16:46 1 hour, 16 minutes, 46 seconds are relevant to them but it takes time to understand what that market is all about and what their KPIs are and most importantly what is that compelling 1:16:54 1 hour, 16 minutes, 54 seconds reason that those OEMs would want to work with KPIT. So this is something that we need to figure out during the course of this year and next year but 1:17:02 1 hour, 17 minutes, 2 seconds pretty soon we'll be getting into uh some of these areas. Uh so this is another flavor that we wanted to give 1:17:09 1 hour, 17 minutes, 9 seconds you in terms of thinking about three horizons in terms of the geographies as well as uh the market segments. 1:17:19 1 hour, 17 minutes, 19 seconds Now the next question is okay this will bring back growth what does that mean to the bottom line 1:17:27 1 hour, 17 minutes, 27 seconds um of KPIT and uh you know in our um we have uh provide directionally that um 1:17:35 1 hour, 17 minutes, 35 seconds uh we'll be able to hold on to our uh IETA in the immediate future uh in spite of the headwinds we'll capitalize on the 1:17:44 1 hour, 17 minutes, 44 seconds tailwinds that we have but more importantly in the midterm we want to increase our margins. Uh we are very clear about that so that our ability to 1:17:51 1 hour, 17 minutes, 51 seconds invest uh continue to make investment uh in the future uh technologies uh uh you know remains valid. 1:18:00 1 hour, 18 minutes Here are the levers by which uh we are improving um our efficiency overall. So let me start with the last one first. 1:18:09 1 hour, 18 minutes, 9 seconds over the last uh three years consistently per person revenue and per person contribution for KPI has gone up 1:18:17 1 hour, 18 minutes, 17 seconds and we believe that it'll continue to go up uh in future that means uh you know there can be a tremendous cost leverage 1:18:24 1 hour, 18 minutes, 24 seconds in terms of overall efficiency and improvement uh this is this is going to be one of the most uh important levers 1:18:31 1 hour, 18 minutes, 31 seconds uh in future now I'll go in the you know first through four uh sort of a sequence uh 1:18:38 1 hour, 18 minutes, 38 seconds number one I already talked about why it's important to get into outcomebased model, right? We want to get into outcomebased model so that we can help 1:18:47 1 hour, 18 minutes, 47 seconds our clients get to their production program faster, cheaper and a in a more reliable manner. Um, and we can also free up their bandwidth to do other things that are relevant to them, right? 1:18:58 1 hour, 18 minutes, 58 seconds Whereas we take care of uh delivering uh entire software very well tested, integrated on the on the road for them. 1:19:07 1 hour, 19 minutes, 7 seconds Um second part is uh Anup talked about the set of solutions. I forget which color it was on Anup's uh uh 1:19:15 1 hour, 19 minutes, 15 seconds presentation but we have uh we have a whole bunch of solutions that we have built. Um and essentially um they create 1:19:23 1 hour, 19 minutes, 23 seconds tremendous value for the clients and they they also shorten the the time frames towards production uh for our 1:19:29 1 hour, 19 minutes, 29 seconds clients. So more we do um you know greater benefit the clients get without compromising our margins. 1:19:38 1 hour, 19 minutes, 38 seconds The third part is we already talked about products um they are sort of the backbone. Anoop actually demonstrated 1:19:45 1 hour, 19 minutes, 45 seconds the vycle the v cycle also has AI infrastructure um uh you know there are set of tools 1:19:52 1 hour, 19 minutes, 52 seconds they are also KPI tools from technica and kpit's own tools. So we are not just limiting oursel uh in this case to the 1:20:00 1 hour, 20 minutes software part. Uh correct it's it's a complete recycle solution that we take uh to our clients. 1:20:08 1 hour, 20 minutes, 8 seconds Um and then in the new markets whether it's India, China, Southeast Asia and Africa 1:20:16 1 hour, 20 minutes, 16 seconds unlike the western world where we started with services and then sort of we are in the process of graduating to 1:20:23 1 hour, 20 minutes, 23 seconds solutions and products um we'll take the products and solutions first approach to the new market starting with India, 1:20:30 1 hour, 20 minutes, 30 seconds Southeast Asia and then in Africa right and that means uh you know it's going to be a lot more cost effective for the buyers and lot more profitable for KPIT. 1:20:42 1 hour, 20 minutes, 42 seconds So these are the five levers by which we believe that uh that will give us the ability to continue to make tremendous investments u in in the future of our 1:20:51 1 hour, 20 minutes, 51 seconds technologies at the same time have profitable growth for our company. 1:20:58 1 hour, 20 minutes, 58 seconds Switching gears a little bit. Um and um I wanted to take a couple of minutes to talk about um while we love to talk 1:21:08 1 hour, 21 minutes, 8 seconds about the technology that we bring and the difference that we make uh to mobility u we are also very proud of our 1:21:15 1 hour, 21 minutes, 15 seconds vision. Um when uh uh new beginning of KPI uh happened in uh uh in early 2019 1:21:23 1 hour, 21 minutes, 23 seconds um it took us about 9 months to come up with the vision. And we involved about 300 people to come up with the vision of the company and we came up with the 1:21:31 1 hour, 21 minutes, 31 seconds vision of reimagining mobility with humans you know all of our stakeholders for cleaner safer and smarter world and 1:21:39 1 hour, 21 minutes, 39 seconds one thing that we are 500% proud of uh among other things is everything that we do 1:21:47 1 hour, 21 minutes, 47 seconds each one of us all 13,000 employees across the globe we help our OEMs make their vehicles cleaner safer or smarter 1:21:55 1 hour, 21 minutes, 55 seconds so we are very proud of uh you know making our vision the reality. We live it every day and you know um uh we are 1:22:03 1 hour, 22 minutes, 3 seconds in a very fortunate position to be doing that. However, it's one thing to have the vision and align your business model 1:22:10 1 hour, 22 minutes, 10 seconds towards the vision. I think that's something that has happened really well. 1:22:14 1 hour, 22 minutes, 14 seconds Uh from sustainability perspective we needed to do something more. Um and for that we launched Eco Voyage uh two years 1:22:23 1 hour, 22 minutes, 23 seconds ago uh with uh very specific ESG related goals. Um and we have actually signed up with science-based uh targets now. 1:22:34 1 hour, 22 minutes, 34 seconds Um and we are committed to uh being a net zero organization by 2050. But there is a uh an important milestone that we 1:22:44 1 hour, 22 minutes, 44 seconds will hit in 2030 which is reducing our own carbon footprint by more than 40%. 1:22:49 1 hour, 22 minutes, 49 seconds Um and we are already made tremendous progress towards it. Uh so this is one part. Um on the environment side that's 1:22:57 1 hour, 22 minutes, 57 seconds what we have signed up for and that's what we will do and we are pretty sure our when you put in science-based target um 1:23:06 1 hour, 23 minutes, 6 seconds you know it's cast in stone. So we just wanted to give ourselves a little more space by signing up for 2050. Uh our 1:23:13 1 hour, 23 minutes, 13 seconds internal goal obviously is to achieve it uh you know before 2040. We'll see how it goes. Um um Anoop and Go with AI have 1:23:23 1 hour, 23 minutes, 23 seconds created new complications for us. So we have to learn to deal with that. Uh um on the social front I think this is 1:23:31 1 hour, 23 minutes, 31 seconds something that we've been doing uh since the beginning of our organization. uh we've been committed to the social causes uh anchored on three E. It's 1:23:40 1 hour, 23 minutes, 40 seconds environment, education, energy um with employee engagement. That has been our 1:23:46 1 hour, 23 minutes, 46 seconds um uh CSR sort of a tagline and all the work that we do uh has tremendous impact on the environment. We also take um lot 1:23:56 1 hour, 23 minutes, 56 seconds of initiatives to educate people right from schoolgoing kids to uh collegegoing to PhD programs. uh and that's something 1:24:04 1 hour, 24 minutes, 4 seconds that we continue to do uh on a large scale and just having targets related to 1:24:11 1 hour, 24 minutes, 11 seconds environment and social is not good enough. You need to have solid governance uh to lead with that and we 1:24:18 1 hour, 24 minutes, 18 seconds have created a a we have made commitments and secondly we have put a stringent governance to make sure that we are staying on top of it. 1:24:27 1 hour, 24 minutes, 27 seconds This is what I wanted to share with all of you. I would love to talk to you about midterm outlook but you may want 1:24:33 1 hour, 24 minutes, 33 seconds to hear this from Kishor. So Kishor back to you. Thank you. 1:24:45 1 hour, 24 minutes, 45 seconds I will also get claps at the end of this. 1:24:53 1 hour, 24 minutes, 53 seconds So this is what we had talked about FI27. Um it's a first we have to say that it's a positive environment in 1:25:00 1 hour, 25 minutes FI27. I must say that all across we are seeing a good traction. I think uh we 1:25:06 1 hour, 25 minutes, 6 seconds have some road little bit of a uh few issues to tackle in the early part of the year but uh we are seeing a very 1:25:15 1 hour, 25 minutes, 15 seconds positive environment if 27 two of our largest SDB programs coming to an end but the revenue will be largely compensated by growth in newly acquired 1:25:24 1 hour, 25 minutes, 24 seconds accounts. So that's the second part I want to consider. Continuation of this program would have resulted in four to 1:25:31 1 hour, 25 minutes, 31 seconds five sequential growth for the year. So you can just say we would have in a very very good situation little bit now it will get compromised but I just wanted 1:25:40 1 hour, 25 minutes, 40 seconds to tell you the kind of growth we are creating into new accounts. 1:25:45 1 hour, 25 minutes, 45 seconds Solid growth is expected from trucks and off highway USA India. India we will be almost doubling. It's a small base but 1:25:54 1 hour, 25 minutes, 54 seconds doubling the revenue and uh China which is also again have grown reasonably well connected vehicles after sales and 1:26:03 1 hour, 26 minutes, 3 seconds autonomous driving which we are expecting growth uh which these are the areas where we will have substantial 1:26:11 1 hour, 26 minutes, 11 seconds growth. We expect 30% year-on-year revenue growth in solution and products and we hope it will increase over the 1:26:18 1 hour, 26 minutes, 18 seconds period. This is very important because this will drive the profitability also as such mentioned it will drive profitability 1:26:26 1 hour, 26 minutes, 26 seconds iota 20.5 to 21.2 post increasing investment in AI solutions and products uh competency development and new markets. 1:26:37 1 hour, 26 minutes, 37 seconds So we will increase uh our profitability. We are just given a range because the currency moments etc. We 1:26:44 1 hour, 26 minutes, 44 seconds really don't know what happens and it has a reasonable impact. This is about FY27. 1:26:51 1 hour, 26 minutes, 51 seconds In midterm, we believe the growth is driven by wallet share improvement in the current account, new account twins, 1:26:58 1 hour, 26 minutes, 58 seconds which we are very very they're very promising and expansion across new geography and adjacencies. 1:27:05 1 hour, 27 minutes, 5 seconds See, I will tell you one thing. We will pick up adjacencies. Suchin talked about it where we can really pivot our 1:27:13 1 hour, 27 minutes, 13 seconds automotive like story in next four years. And this has to be an area which is of a high spend in a really tech 1:27:21 1 hour, 27 minutes, 21 seconds enabled area very tech enabled area and we have we will only go for a leadership we'll only go for the leadership in in a 1:27:29 1 hour, 27 minutes, 29 seconds medium-term that's what we uh we are used to and that's what we will go for we have opportunity for annualized 1:27:38 1 hour, 27 minutes, 38 seconds sustainable double digit growth uh and I can tell you that I have been a little 1:27:45 1 hour, 27 minutes, 45 seconds uh we want to be make sure that we do not want to overcome it. We have generally done this. We we will be in a 1:27:52 1 hour, 27 minutes, 52 seconds position to we believe that the opportunity is big and if little bit of a help from environment we can significantly grow in years to come. 1:28:02 1 hour, 28 minutes, 2 seconds Again go back to the old days 50% revenue share to be achieved from solutions and product. This is very 1:28:08 1 hour, 28 minutes, 8 seconds important and see the revenue part which is in FI26 which is 85% of our uh this 1:28:17 1 hour, 28 minutes, 17 seconds 15% is solution and product which will move to 60% in 3 years and this is in terms of 40%. So we expect the IITA to 1:28:26 1 hour, 28 minutes, 26 seconds be between 22 to 24% from where we are today. So this is what we are looking at. We do believe that uh we can bring 1:28:34 1 hour, 28 minutes, 34 seconds back a significant profitable growth in the medium-term. Uh medium-term is uh year 1:28:41 1 hour, 28 minutes, 41 seconds after this next next two years, next few years. And uh we can u you know u we can 1:28:49 1 hour, 28 minutes, 49 seconds again go back to the ways we are more familiar with and uh build a much larger canvas forward growth not only for next 1:28:56 1 hour, 28 minutes, 56 seconds two years but much longer time. That's what uh we are looking for and uh u this 1:29:04 1 hour, 29 minutes, 4 seconds is what we have. Um thank you very much for the time and we'll take the question. 1:29:10 1 hour, 29 minutes, 10 seconds Thank you. 1:35:17 1 hour, 35 minutes, 17 seconds So let's begin with our question and answer session. Can we please begin with you sir? You can introduce yourself. 1:35:22 1 hour, 35 minutes, 22 seconds Hi Chanti Mataya from Goldman Sachs. Um thank you very much for the detailed presentations to all the members of the management to present it. Very useful 1:35:31 1 hour, 35 minutes, 31 seconds insights um to understand the journey going forward. Uh I have three questions. Uh the first one is just on this pivot on your sort of slide on the 1:35:40 1 hour, 35 minutes, 40 seconds industry that mostly incremental spend over the next few years might be in the AD ADAS space and KPI in the past has 1:35:47 1 hour, 35 minutes, 47 seconds had a reasonably good share of its own revenue come from ADAS. Um at this stage it looks like most of the spend on ADAS 1:35:57 1 hour, 35 minutes, 57 seconds um the big spend is happening with the new age OEMs VHO Tesla some of the Chinese OEMs some of the Korean OEMs. Uh 1:36:05 1 hour, 36 minutes, 5 seconds so just want to understand amongst the legacy players which is your key focus um how ADAS will progress in that context will majority of the spend be 1:36:13 1 hour, 36 minutes, 13 seconds with some of the new age OEMs and and how KPI can leverage itself for that opportunity. Um second one is just to 1:36:22 1 hour, 36 minutes, 22 seconds understand the four to 5% sequential growth opportunity through FI27 if there was no ramp down in in the two large 1:36:30 1 hour, 36 minutes, 30 seconds programs you spoke about. So at this stage KPI is close to a $750 million kind of revenue organization. So just 1:36:37 1 hour, 36 minutes, 37 seconds want to understand on an annual basis what is the gap in revenue that has to be covered with these newly acquired accounts to do the growth aspiration 1:36:46 1 hour, 36 minutes, 46 seconds that you might have for the year in FI27. 1:36:49 1 hour, 36 minutes, 49 seconds And the third bit is just on the 22 to 24% IITA margin range. uh what are the drivers of that transition from the 1:36:57 1 hour, 36 minutes, 57 seconds current sort of mid 20% 20.5% kind of range to a 22 to 24% 1:37:04 1 hour, 37 minutes, 4 seconds range? Is that more to do with products and solutions being a larger share? 1:37:09 1 hour, 37 minutes, 9 seconds What's the difference between products and solutions versus what the legacy business is in terms of margin opportunity set? Um and what role does 1:37:17 1 hour, 37 minutes, 17 seconds AI play in that in that sort of transition? So those are my three questions. Thank you. 1:37:22 1 hour, 37 minutes, 22 seconds So first thing is on autonomous u part uh I will take it uh from there. So it's a for every client for example any 1:37:31 1 hour, 37 minutes, 31 seconds legacy OEMs which they have built the solutions uh they have been in a position to go to to level two or two 1:37:40 1 hour, 37 minutes, 40 seconds plus level and now they have to move towards that and there they have realized most of them they have realized 1:37:47 1 hour, 37 minutes, 47 seconds that they will have to source from they will have a different partner like for example if you talk about 1:37:54 1 hour, 37 minutes, 54 seconds Chinese or that part there's a layer called moment If you talk about you know other other 1:38:02 1 hour, 38 minutes, 2 seconds players I mean we talked about Helm where we had then this there are players in Europe. uh so you know the these are 1:38:10 1 hour, 38 minutes, 10 seconds this I think uh we uh as I mentioned earlier the main opportunity for us first so this is an opportunity across 1:38:18 1 hour, 38 minutes, 18 seconds the region that's where the spent I said it will accelerate last few years if you know it had slowed down the autonomous 1:38:26 1 hour, 38 minutes, 26 seconds uh area so it will accelerate and our opportunity is in terms of validation and simulation and the what we create 1:38:35 1 hour, 38 minutes, 35 seconds there are few things we have demonstrated ating how things will work also how we will do it but that will be the big area for us and also of course some of the areas we can add to that. 1:38:46 1 hour, 38 minutes, 46 seconds The second part is off highway and not uh commercial vehicles. They are looking at also autonomy and uh so that is 1:38:55 1 hour, 38 minutes, 55 seconds another area which uh will be the area of growth and uh uh so I think these are some of 1:39:02 1 hour, 39 minutes, 2 seconds the area in some of new adjacencies we are talking about there are also autonomy opportunities. So these are this is uh uh I I hope I have answered 1:39:11 1 hour, 39 minutes, 11 seconds the question whether it is this uh just to tell you we do work with all these company including momenta 1:39:18 1 hour, 39 minutes, 18 seconds we also sell our products to some of these companies we also work in their implementations uh out in uh out for 1:39:27 1 hour, 39 minutes, 27 seconds other clients so we already have that experience and uh uh you know this with this kind of thing that's the first 1:39:35 1 hour, 39 minutes, 35 seconds question the second question I will take and I'll come to this is the margin the margin uh growth will come through uh as 1:39:45 1 hour, 39 minutes, 45 seconds as we said uh we believe that uh uh we will be in a position to increase our gross contribution significantly through our approach of solutions and products. 1:39:58 1 hour, 39 minutes, 58 seconds Uh of course you know the products typically the gross margins will be much higher. uh the solutions also the 1:40:05 1 hour, 40 minutes, 5 seconds margins will be higher because we will have our own um um uh I would say the uh 1:40:13 1 hour, 40 minutes, 13 seconds we we call it PTAs we we we have uh the assets reusable 1:40:20 1 hour, 40 minutes, 20 seconds assets along with the AI infused solutions we will be in a position to really improve our margins substantially 1:40:27 1 hour, 40 minutes, 27 seconds and that is really the way we have built the organization within the practices we have so with that we will be in a position to improve the margin. So 1:40:35 1 hour, 40 minutes, 35 seconds that's the first part. The second part is opposite uh the business model change 1:40:41 1 hour, 40 minutes, 41 seconds which uh we will uh do and which is be becoming more fixed price uh AI infused 1:40:49 1 hour, 40 minutes, 49 seconds solutions. So these are a couple of areas uh which I can call out and there may I mean of course as Sachin mentioned 1:40:57 1 hour, 40 minutes, 57 seconds we will be using AI internally so we can have efficiency in terms of HGNA and all 1:41:04 1 hour, 41 minutes, 4 seconds that but I the key drivers are the first two I talked about the third area you asked me about four to 5%. I just 1:41:11 1 hour, 41 minutes, 11 seconds mentioned this about this year that the because this was a big program. This is this is a big drop for us uh for the 1:41:19 1 hour, 41 minutes, 19 seconds first half of the year and and that will be a significant uh part uh for us. So you you know the calculations right if 1:41:27 1 hour, 41 minutes, 27 seconds it is a 4% what uh the uh 3 to four 4% if you look at on our quarter uh 1:41:34 1 hour, 41 minutes, 34 seconds revenue. So that's something kind of an impact uh we will have and we will try to uh first cover that uh and then later 1:41:43 1 hour, 41 minutes, 43 seconds on uh go go beyond it. That's the this is to that's helpful just just to clarify 1:41:50 1 hour, 41 minutes, 50 seconds that. So four to 5% is 4Q to 1Q and once you sort of lap that then that's sort of behind you for the rest of the year. Is 1:41:58 1 hour, 41 minutes, 58 seconds that I mean uh it will be uh I mean we are so there are two two things we I want to 1:42:04 1 hour, 42 minutes, 4 seconds say is these clients we already have more pipeline we are going for some more 1:42:12 1 hour, 42 minutes, 12 seconds work the only thing is there is a gap it's not that this is stop and then you will get that also at some point of time they will look at the new architecture 1:42:20 1 hour, 42 minutes, 20 seconds new production programs uh other parts so we we have those kind of a engagement they may not exactly be equal to the 1:42:28 1 hour, 42 minutes, 28 seconds kind of a drop we we may have but even this these clients we have more business to cover. So first is something we will 1:42:36 1 hour, 42 minutes, 36 seconds make up by that and the second we'll make up by the new clients which we have. 1:42:41 1 hour, 42 minutes, 41 seconds Got it. Got it. And then just the other followup question I had um is just on the current state of spending. Uh I think uh Sachin you mentioned there's 1:42:50 1 hour, 42 minutes, 50 seconds been challenge after challenge over the past four or five years which you've sort of tried to manage through um and and in the current environment where uh 1:42:58 1 hour, 42 minutes, 58 seconds there's higher oil prices globally and then the automotive companies in certain geographies might have some shortfall in 1:43:05 1 hour, 43 minutes, 5 seconds cash flow. um what impact does that have on maybe the near term in terms of when they choose to reopen their purses um on 1:43:14 1 hour, 43 minutes, 14 seconds on on you know broader futuristic R&D and spending we have not seen the impact on the OEMs 1:43:22 1 hour, 43 minutes, 22 seconds yet uh because of the conflict that we are seeing at this point in time we'll see when it gets resolved I think if it continues beyond 3 to 6 months it'll 1:43:31 1 hour, 43 minutes, 31 seconds have repercussions you know that will be macro uh at that time we may have to think about it but today we are not in 1:43:39 1 hour, 43 minutes, 39 seconds any of our conversations with any of our clients this is not coming up um I think they are solely focused on rationalizing 1:43:46 1 hour, 43 minutes, 46 seconds their costs and creating funds uh you know to invest into the future programs I think that's what they're solely 1:43:53 1 hour, 43 minutes, 53 seconds focused on so those conversations uh are not coming in um it may impact the truck 1:44:01 1 hour, 44 minutes, 1 second business faster than the passcar business if this continues use beyond uh a period of time. So we are watchful about it. All our clients are watchful 1:44:10 1 hour, 44 minutes, 10 seconds about it but nobody's taking any actions as of now. 1:44:13 1 hour, 44 minutes, 13 seconds Got it. And just lastly um there was an interesting presentation on on the India opportunity global for India India for 1:44:21 1 hour, 44 minutes, 21 seconds India. I think you've already announced an engagement with JSW Motors which which potentially comes out with their first vehicle for India later this year. 1:44:30 1 hour, 44 minutes, 30 seconds Um so just want to understand um today what what what is India as a percentage of your revenue and in your journey over 1:44:38 1 hour, 44 minutes, 38 seconds the next 3 to 5 years um where do you envision this as a contributor just given that a lot of the new EVs new hybrids that are coming into the Indian 1:44:46 1 hour, 44 minutes, 46 seconds market are are pretty um software intensive. 1:44:50 1 hour, 44 minutes, 50 seconds Yeah. uh right now uh we are about uh 4% uh of our revenues are from India and uh 1:44:59 1 hour, 44 minutes, 59 seconds we they will increase uh substantially the share will go up uh and uh we do 1:45:06 1 hour, 45 minutes, 6 seconds believe uh that uh it it if it is going to be the third largest market that's why we are doubling down uh I mean if if 1:45:14 1 hour, 45 minutes, 14 seconds it is going to be in my view 10 years second largest market we would like to really double down and play a very dominant role in this market. 1:45:23 1 hour, 45 minutes, 23 seconds All right. Thank you very much and all the best. Thank you. Thank you. 1:45:32 1 hour, 45 minutes, 32 seconds Yeah. Thank you for the opportunity, sir. Uh this is Vimal Gohill from Alchemy Capital. Uh sir, my question is around uh you mentioned uh uh uh 1:45:41 1 hour, 45 minutes, 41 seconds reusable assets and solutions in the presentation. I just wanted to uh ask how are we compete how are these 1:45:50 1 hour, 45 minutes, 50 seconds solutions competing with the Chinese counterparts because one globally we've seen a massive flip-flop so EVs took a 1:45:59 1 hour, 45 minutes, 59 seconds back seat last year now suddenly you're seeing the near-term data on EVs growing 50% in some markets because of what we are seeing on the oil price so there 1:46:08 1 hour, 46 minutes, 8 seconds could be another flip on that and uh the OEMs will have to be very very agile there are certain uh uh quick to use uh 1:46:16 1 hour, 46 minutes, 16 seconds Chinese uh you know products or IPs available plus there is the Google and the Apple ecosystem also that's that's available on the front end. So how how 1:46:25 1 hour, 46 minutes, 25 seconds are our products sort of working over there? That's that's point number one. 1:46:31 1 hour, 46 minutes, 31 seconds And lastly on this uh uh R&D uh uh aggressive experimentation strategy that we've we've sort of capitalized over the 1:46:38 1 hour, 46 minutes, 38 seconds last three four five years that is moving towards more uh uh disciplined capital efficiency you know by these 1:46:45 1 hour, 46 minutes, 45 seconds OEMs. So how are we uh looking to maneuver that uh aspect that that'll be helpful. 1:46:54 1 hour, 46 minutes, 54 seconds Uh I will I'll give you a first answer you can add if you want to. the uh the second answer I will tell you is uh we talked about is improving our wallet 1:47:03 1 hour, 47 minutes, 3 seconds share and coming out going with a product and solution. So instead of see the fundamentally the shift in the 1:47:10 1 hour, 47 minutes, 10 seconds services business is having a doing a work with somebody else in terms of a TNM or then later on fixed in in terms 1:47:20 1 hour, 47 minutes, 20 seconds of getting work done uh then whether we can do it ourself whether we can do it in GCSS versus having a solution 1:47:28 1 hour, 47 minutes, 28 seconds full-fledged solution somebody ready to take the ownership and doing it faster and with innovation so that is the basically fundamental thing and that's 1:47:36 1 hour, 47 minutes, 36 seconds why we mention about how we will increase our wallet share and that is something we measure every time. So I 1:47:44 1 hour, 47 minutes, 44 seconds think uh that's that's how we would like to increase uh that. The second thing is we showed the Mckenzie numbers also 1:47:52 1 hour, 47 minutes, 52 seconds there there is a shift in the num uh in the spend but actually the overall spend is increasing they somewhere else it 1:47:59 1 hour, 47 minutes, 59 seconds will get cut down but the overall spend is will increase. So this is the answer for the second question about the 1:48:05 1 hour, 48 minutes, 5 seconds Chinese OEM. I I can tell you that there are uh Chinese has been very successful in 1:48:12 1 hour, 48 minutes, 12 seconds China. When you go outside China, their ecosystem does not work. The one of the best benefit of Chinese OEM is in China 1:48:22 1 hour, 48 minutes, 22 seconds is because of their ecosystem. And one of the reason they find favor with KPIT 1:48:28 1 hour, 48 minutes, 28 seconds is also because of a very strong partner and the trusted partner to the OEM 1:48:35 1 hour, 48 minutes, 35 seconds outside China. So that's why they are ready to partner with us for going outside China. Many of these we we find 1:48:44 1 hour, 48 minutes, 44 seconds more traction than others. To answer your question, we we believe with AI based and the solutions, our solutions 1:48:51 1 hour, 48 minutes, 51 seconds will be as good if not better because many of these solutions are localized also. We need a localized law, localized 1:48:59 1 hour, 48 minutes, 59 seconds proven way of working. China is a special market. It works in a different way. So having that understanding of 1:49:06 1 hour, 49 minutes, 6 seconds different market working in that market will will give us a unique advantage. Uh sir just one clarification or one 1:49:13 1 hour, 49 minutes, 13 seconds question here a fresh question is u some of these Chinese specialist automotive erd specialist are working at you know 1:49:21 1 hour, 49 minutes, 21 seconds high are are working with very high gross margins that is their revenue per employee is significantly higher but 1:49:30 1 hour, 49 minutes, 30 seconds their investments into R&D uh you know uh are are far far above the industry average and they're working on negative 1:49:37 1 hour, 49 minutes, 37 seconds AITA margins in that context and plus we you know sort of and they're going global as well. They're working with some of these larger OEMs. We are sort 1:49:46 1 hour, 49 minutes, 46 seconds of we we will be encountering them when we sit across the table for most of these OEMs that we work with and to that 1:49:54 1 hour, 49 minutes, 54 seconds extent we are talking of expansion of EIDA margins from the current 20 odd levels to 22 to 24. Uh if you can just 1:50:01 1 hour, 50 minutes, 1 second maybe reconcile the math here that we are competing with them plus we are talking about expanding a bit margins. 1:50:08 1 hour, 50 minutes, 8 seconds So uh I mean you I I don't know whether you have a specific example but we know all the Chinese players we comp I mean 1:50:16 1 hour, 50 minutes, 16 seconds there's uh some places we have come across some of these but we we can compete with them favorably outside China in China we are building our 1:50:25 1 hour, 50 minutes, 25 seconds capacity to basically uh we talked about in certain products and solutions like uh I mean just to give you the 1:50:33 1 hour, 50 minutes, 33 seconds validation the products which we have we are selling it to all the all the top OEMs in China. Uh we are 1:50:42 1 hour, 50 minutes, 42 seconds also if you look at some solutions like uh after says uh these are we are selling uh there is a very good interest in China to do that. 1:50:53 1 hour, 50 minutes, 53 seconds So I I don't uh see anything I'm sure they will be good at some places. I'm not saying you know everywhere we will be there. 1:51:01 1 hour, 51 minutes, 1 second So let me add to what Kishor is saying. 1:51:03 1 hour, 51 minutes, 3 seconds uh if you look at China number one it's their EV platform or their batteries that's their biggest export as of now 1:51:11 1 hour, 51 minutes, 11 seconds the second part their hope is they will also sell the software platform right on top of that so to us the EV platform and 1:51:18 1 hour, 51 minutes, 18 seconds the batteries complement this is where we can play the integration validation production because they don't have that experience they don't have the local 1:51:27 1 hour, 51 minutes, 27 seconds capability so for some of our OEMs we are already working with Chinese tier ones or tier layer tools for that matter to help them go into production. Right? 1:51:37 1 hour, 51 minutes, 37 seconds So that is very complimentary uh to what we are doing as far as the software stack is concerned. That's where the 1:51:43 1 hour, 51 minutes, 43 seconds exposure could be. Um yes potential threat but I think we we're going to take them head on and that's why you 1:51:51 1 hour, 51 minutes, 51 seconds know Anu presented uh the V cycle and the solutions that we are building. we we think that they are a lot more robust 1:51:58 1 hour, 51 minutes, 58 seconds and they are actually localized in different markets where Chinese have not don't have the same kind of experience. 1:52:05 1 hour, 52 minutes, 5 seconds Uh so yes they are going to be complimentary in some areas. There will be some competition um uh but I think uh you know I think we are we are on. 1:52:15 1 hour, 52 minutes, 15 seconds Thank you. Uh sir one uh cl a percentage of revenue is coming from China that'll help you given the number in India that 1:52:23 1 hour, 52 minutes, 23 seconds is 4%. We would not like to talk about that but it is similar to India. Thank you so much sir and all the best. 1:52:31 1 hour, 52 minutes, 31 seconds Thank you. 1:52:33 1 hour, 52 minutes, 33 seconds Hi uh Hane here. Uh just want a sense of you know when I just see the automotive 1:52:40 1 hour, 52 minutes, 40 seconds landscape at least also in India is that somehow over the last few years the Japanese seem to have lost their way 1:52:48 1 hour, 52 minutes, 48 seconds right. I mean there used to be a lot of new products. The Japanese OEMs were looked at very favorably in a country 1:52:56 1 hour, 52 minutes, 56 seconds like India for reliability of their cars, fuel efficiency etc. Last few years they seem to have lost their mojo. 1:53:03 1 hour, 53 minutes, 3 seconds It so happens that also your ramp down seems to be from a Japanese OEM, right? 1:53:07 1 hour, 53 minutes, 7 seconds And I think when there was a w early wave of electrification and EV, I think they were still batting and rooting for 1:53:17 1 hour, 53 minutes, 17 seconds hybrids, maybe hybrids will also all three will coexist. Uh but even what are 1:53:25 1 hour, 53 minutes, 25 seconds you seeing? What are these Japanese OEMs thinking? Because they are very large players globally, right? and uh not just 1:53:33 1 hour, 53 minutes, 33 seconds in India but I somehow feel that they seem to be losing their way even globally. What is the thinking? I mean do you think that I mean usually they 1:53:42 1 hour, 53 minutes, 42 seconds take a lot of time to decide and then they move and hopefully that will help us get more business from the Japanese OEMs. 1:53:50 1 hour, 53 minutes, 50 seconds So you know let's talk about three specific ones correct. The biggest one if you look at them they've done reasonably well as compared to anybody else. The big Japanese is OEM, right? 1:54:01 1 hour, 54 minutes, 1 second Toyota. 1:54:01 1 hour, 54 minutes, 1 second Yeah. You know, they're still the biggest. The the drop in their profitability was comparatively lower. 1:54:07 1 hour, 54 minutes, 7 seconds Sales actually went up, right? Compared to everybody else. So, they are fairly resilient because they are they have global footprint and they have been able 1:54:14 1 hour, 54 minutes, 14 seconds to localize their products everywhere, right? So, they do have a lead of and they are the ones if you look at on the 1:54:22 1 hour, 54 minutes, 22 seconds SDB journey, they are the most backward, right? So, that says something about it. 1:54:27 1 hour, 54 minutes, 27 seconds Um so they do have a little bit of a runway uh you know before they start to lose market share in the bigger markets. 1:54:35 1 hour, 54 minutes, 35 seconds I'm I'm talking about globally not just about India generally speaking. So now I think there is an opportunity for us to 1:54:43 1 hour, 54 minutes, 43 seconds help someone like Toyota rapidly get on to the SDV journey and also get into multiple powertrains. 1:54:51 1 hour, 54 minutes, 51 seconds Right? They're still number one when it comes to hybrid. Right? they were the first ones and they continue to dominate and I think in some markets it makes perfect sense for instance US right 1:55:00 1 hour, 55 minutes which is the most profitable market for them. So yes, they they they have taken a little bit longer. They decided to double down on hybrid as opposed to bev. 1:55:11 1 hour, 55 minutes, 11 seconds But if you look at what they have done in China, uh Toyota launched uh a battery electric vehicle with level two plus autonomy stack from a from momenta 1:55:20 1 hour, 55 minutes, 20 seconds actually and they're actually gaining slight bit of market share in China, right? So I think they are taking some steps to get there and to us it's an 1:55:28 1 hour, 55 minutes, 28 seconds opportunity. Um, Nissan has gone through a a difficult period, but they are coming back slowly, 1:55:36 1 hour, 55 minutes, 36 seconds right? I think they're cutting costs dramatically and they're they're they're trying to figure out which are the markets that are really important to them and where they'll uh remain 1:55:44 1 hour, 55 minutes, 44 seconds relevant. Um, from Honda, US is the market right now. It's their that's where they make money. Um, and that's 1:55:52 1 hour, 55 minutes, 52 seconds where they sell really well and people believe in Honda cars uh right in the US. However, they have sort of all three of them except for Toyota in the recent 1:56:01 1 hour, 56 minutes, 1 second past, they have dramatically lost their market share in China, right? So, that's where they lost the game and because Chinese presence is also expanding in 1:56:09 1 hour, 56 minutes, 9 seconds Southeast Asia and Latin America, that's where they're facing competition on the battery electric vehicle. However, these 1:56:16 1 hour, 56 minutes, 16 seconds markets, it's only 10 to 15% battery electric vehicle penetration. as far as the remaining 80 85% 1:56:23 1 hour, 56 minutes, 23 seconds um it's still Toyota largely and maybe bit of uh Honda and Nissan in those. So to your point, yes there is a challenge. 1:56:32 1 hour, 56 minutes, 32 seconds Um all three of them are dealing with it little differently but I think in the recent past there has been a bigger wakeup call and you have started to see 1:56:40 1 hour, 56 minutes, 40 seconds actions from Nissan in last one year and you'll see similar actions from Honda in the next month or two right to really find out which market are going to 1:56:49 1 hour, 56 minutes, 49 seconds define them in future and what's going to be their differentiator. uh they're betting big. They've been betting big on 1:56:55 1 hour, 56 minutes, 55 seconds hydrogen um on uh sodium um cells as well. So I think they're trying to now 1:57:03 1 hour, 57 minutes, 3 seconds disrupt the China. They they probably given up on the pure battery electric part, right? They are saying now how to disrupt China beyond battery electric. 1:57:12 1 hour, 57 minutes, 12 seconds That's the thinking. So we'll see how this unfolds. Uh but I think you're you're spot on. Uh Nissan has been in trouble. Now Honda is getting in 1:57:21 1 hour, 57 minutes, 21 seconds trouble. Uh and if Toyota does doesn't change their ways, they can potentially get in trouble in couple of years. Uh thank you so much sir for the answers. 1:57:33 1 hour, 57 minutes, 33 seconds Our next question is uh by Mr. Arun. I'd like to request uh Arun to kindly introduce himself along with his organization's name. 1:57:56 1 hour, 57 minutes, 56 seconds Hi, am I? Yes. Hello. 1:58:05 1 hour, 58 minutes, 5 seconds Hi Arun. Uh could you please uh start by introducing yourself, your organization's name and then your question? 1:58:11 1 hour, 58 minutes, 11 seconds Hi. Uh my name is Arun and I am a qualified chartered accountant. Uh I'm from Sin Alpha. Uh just having one question uh you mentioned about the 1:58:19 1 hour, 58 minutes, 19 seconds middleware and the corex part right uh when do you we expect these things to get normalized and we can expect some incremental contribution from the corx 1:58:28 1 hour, 58 minutes, 28 seconds part I think uh I mentioned a bit uh that when the new architecture programs will 1:58:36 1 hour, 58 minutes, 36 seconds start coming in I think that's when uh that will come but in off highway commercial there is already an opportunity for us uh to introduce I 1:58:44 1 hour, 58 minutes, 44 seconds think So u there are both on pascar as well as off highway commercial it will take some 1:58:52 1 hour, 58 minutes, 52 seconds time because typically uh with multiple changes there is a 1 to two years delay in these programs so 1:59:01 1 hour, 59 minutes, 1 second that's when it would come up an you have any quick and you know just one clarification uh 1:59:10 1 hour, 59 minutes, 10 seconds not all middleware from KPI perspective equals to corex quorex is platform. So, Quorex platform wherever it goes, KPIT 1:59:18 1 hour, 59 minutes, 18 seconds will go in terms of its uh implementation partner. However, the middleware demand will uh to Kishor's point will uh sort of start to pick up 1:59:27 1 hour, 59 minutes, 27 seconds for us in uh trucks and off highway as we do more and more of their uh software defined machine programs. 1:59:35 1 hour, 59 minutes, 35 seconds Understood. Just one more thing. uh these TCBS been in this quarter there is a a significant jump and uh uh 1:59:43 1 hour, 59 minutes, 43 seconds coincidentally it is at the same time when we are seeing uh these two big SDVs uh are uh coming to an end uh just 1:59:51 1 hour, 59 minutes, 51 seconds trying to understand like how we managed the significant jump in this TCV in this particular quarter and not uh in the 1:59:58 1 hour, 59 minutes, 58 seconds earlier quarters and uh secondly uh uh how do you think like uh what can be the uh new base for this TCB wins for us in maybe in the in the upcoming quarters. 2:00:11 2 hours, 11 seconds First thing is we are happy that I hope you are also happy that it has come in time. It has come on the back of I said 2:00:18 2 hours, 18 seconds off highway commercial and few other strong uh you know wins we had and also other uh uh our traditional clients 2:00:28 2 hours, 28 seconds also. Uh so it's not uh it's a process I think it just worked out uh during this 2:00:34 2 hours, 34 seconds quarter. I I can't say specifically what it is but uh typically I think uh uh uh 2:00:42 2 hours, 42 seconds I would say that uh uh I mean I cannot say what is the minimum we will get earn every quarter in terms of wins but uh I 2:00:51 2 hours, 51 seconds think uh I looking at the market I think we see that much stronger uh wins as 2:00:58 2 hours, 58 seconds compared to the last year every quarter I think quarter or quarter there will be variability because they are very different but If you take a six monthly 2:01:06 2 hours, 1 minute, 6 seconds yearly view, you'll see change year on year quite a bit uh in a positive direction. 2:01:13 2 hours, 1 minute, 13 seconds And please understand some of these are multi-year. So that's why what Sachin mentioned if you win a one large some it 2:01:20 2 hours, 1 minute, 20 seconds may not happen every quarter but typically we see a stronger traction as compared to the last 2:01:34 2 hours, 1 minute, 34 seconds got it that's it from thank you yeah hi uh good evening this is Moes Chandani from Ambit so uh my first question was uh in your conversations 2:01:42 2 hours, 1 minute, 42 seconds with European and North American OEMs how are they responding ing to all the challenges that they are facing. You know, they saw EVs uh decline 2:01:50 2 hours, 1 minute, 50 seconds significantly, had to write off, now they are facing competition with China. 2:01:54 2 hours, 1 minute, 54 seconds Is the focus right now very firmly on cost consolidation where they just want to preserve their market share or do you 2:02:01 2 hours, 2 minutes, 1 second see any change in terms of appetite for them to maybe even increase or improve their STV spends? That's the first question. 2:02:08 2 hours, 2 minutes, 8 seconds Sure. Uh so both two separate markets, different strategies, right? If you look at and I'm generalizing first let's take 2:02:15 2 hours, 2 minutes, 15 seconds uh Europe because that's where the pressure is the highest you know there are tariffs and then there is more intense Chinese competition not only in 2:02:23 2 hours, 2 minutes, 23 seconds Europe but also in China for the European OENS right so they are under lot more pressure than the American ones at this point in time um so their 2:02:31 2 hours, 2 minutes, 31 seconds strategy is essentially they have to dramatically reduce their cost so two things a cost of the product and cost of production that's really their focus if 2:02:39 2 hours, 2 minutes, 39 seconds you look at it there are still when we look at them there are a lot of inefficiencies they've been working with. Their ecosystem is also 2:02:48 2 hours, 2 minutes, 48 seconds it's very localized to Germany and Western Europe sometimes in Eastern Europe. So they're taking a very hard 2:02:55 2 hours, 2 minutes, 55 seconds look. Uh the the what was working in their favor is going against them now, right? This is what helped them build 2:03:03 2 hours, 3 minutes, 3 seconds true engineering excellence, right? And the the kind of vehicles that they have built. Uh but now that is getting disrupted because of the Chinese OEM. So 2:03:11 2 hours, 3 minutes, 11 seconds a they have to let go um of that and then they have to look at um new set of 2:03:18 2 hours, 3 minutes, 18 seconds partners you know some will come from China some will come from India uh and that's exactly what they're going through and um the net net of that is a 2:03:28 2 hours, 3 minutes, 28 seconds there is a lot of cost that they can save both on the product side as well as in the production side uh by just reooking at how they do this work right 2:03:36 2 hours, 3 minutes, 36 seconds and with whom they do this work right so there is tremendous head headroom for them to reduce the cost uh there. So 2:03:44 2 hours, 3 minutes, 44 seconds that's what we are seeing in Europe at this point in time u with all the three OEMs. Now one of them specifically is 2:03:51 2 hours, 3 minutes, 51 seconds already thinking about the future right um and uh the other two will start to think in in pockets they are already 2:03:58 2 hours, 3 minutes, 58 seconds thinking about it but they'll think about it uh you know maybe once they get their cost little bit lot more aligned 2:04:08 2 hours, 4 minutes, 8 seconds uh to the future business right so that's a a some color to what we are seeing at and I'm generalizing this for 2:04:17 2 hours, 4 minutes, 17 seconds all of Europe uh when I say This is mostly about Germany. Uh, of course there is there are other nuances in UK and France. Um, 2:04:26 2 hours, 4 minutes, 26 seconds in North America there are two now right besides Tesla. Um, and for them they are 2:04:33 2 hours, 4 minutes, 33 seconds in a protected market. If you see 80% of their sales, Chinme, if I'm not mistaken, both for GM and Ford are actually in North America and that's 2:04:41 2 hours, 4 minutes, 41 seconds where they don't have Chinese competition, right? And their hope is that they will not have Chinese competition in the immediate future. So 2:04:48 2 hours, 4 minutes, 48 seconds their view is very different. They are actually investing in the future and when it comes to General Motors, they're actually working on the second 2:04:56 2 hours, 4 minutes, 56 seconds generation of SDV as we speak. Uh correct? The other one has scrapped the next generation, but they're working on 2:05:03 2 hours, 5 minutes, 3 seconds an intermediate kind of a uh so I think the approaches are very different. 2:05:08 2 hours, 5 minutes, 8 seconds They're remaining focused on the vehicles that make money for them in the US, which are largely the SUVs. Um and they're doubling down on that. Right? If 2:05:17 2 hours, 5 minutes, 17 seconds you look at it, there is very little demand for electric vehicles in the US, especially now that the benefits have gone away, right? Uh the government 2:05:26 2 hours, 5 minutes, 26 seconds support has uh gone away. So, you know, they're scrapping their electric programs and doubling down on 2:05:34 2 hours, 5 minutes, 34 seconds ice as well as hybrid, right? um one of them has created a separate company in 2:05:41 2 hours, 5 minutes, 41 seconds California that they think can compete with the Chinese right so what does that mean right in Europe it creates a 2:05:50 2 hours, 5 minutes, 50 seconds tremendous opportunity for us to be part of their new ecosystem in a more strategic manner and in the US we are already part of their future programs uh 2:05:59 2 hours, 5 minutes, 59 seconds that are necessary for them to remain relevant and uh competitive in the US now in the US for these two OEMs Even 2:06:07 2 hours, 6 minutes, 7 seconds though they don't have competition from China, but guess who have who they have competition from, it's the other OEMs from Japan, Korea, and Europe. Correct? 2:06:18 2 hours, 6 minutes, 18 seconds Because for them, China is not their number one market anymore. It's the US, right? So, they still have to remain uh 2:06:25 2 hours, 6 minutes, 25 seconds competitive in their own way and that creates an opportunity for Kate. 2:06:29 2 hours, 6 minutes, 29 seconds Got it. Thank you for that very detailed response. Uh secondly, if I'm just looking at the off offhighway segment, right, and that's something that you've 2:06:37 2 hours, 6 minutes, 37 seconds talked about will be a big growth driver. Now I understand the size of the automotive software market for Pascar, but how big do you think is the market 2:06:44 2 hours, 6 minutes, 44 seconds for offend? Is adoption or requirement for software really as high to compensate for any decline that you're seeing in the Pascar segments? So number 2:06:54 2 hours, 6 minutes, 54 seconds one just to get this out of the way there is no decline that we are seeing you know the the if you remember our second slide we do believe that the 2:07:02 2 hours, 7 minutes, 2 seconds spend will go up there is a reset of that spend but the spend will go up in passcar so we are not giving up on passenger cars it's our bread and butter 2:07:10 2 hours, 7 minutes, 10 seconds will continue to remain our bread and butter going forward however as the size of our company grows we need to also expand our horizon in a very strategic 2:07:19 2 hours, 7 minutes, 19 seconds manner that's exactly what we are doing by looking at trucks and highway the spend is very different. A the number of 2:07:25 2 hours, 7 minutes, 25 seconds OEMs that exist in trucks outside of China are very limited. There are five that dominate probably 80% of the market share globally right outside of China. 2:07:35 2 hours, 7 minutes, 35 seconds Um so the spend is limited uh to them. 2:07:39 2 hours, 7 minutes, 39 seconds um off highway is a different thing right I think there are specialists uh in different there are five big ones globally but then there are a lot of 2:07:48 2 hours, 7 minutes, 48 seconds local ones in Europe in India uh Southeast Asia and so forth right and and in the US as well their spend is not 2:07:55 2 hours, 7 minutes, 55 seconds quite as much as passenger car I mean number of vehicles sold right you're talking about 90 million versus less 2:08:02 2 hours, 8 minutes, 2 seconds than a million right um so uh it's not the same however uh their applications are very different and they are 15 years 2:08:12 2 hours, 8 minutes, 12 seconds behind when it comes to making investments in software. So that creates headroom for us to grow for the next several years along with them. 2:08:22 2 hours, 8 minutes, 22 seconds If that answers your question then thanks for that. And just lastly trying to understand these rampdowns that you're talking about a little bit 2:08:29 2 hours, 8 minutes, 29 seconds better. Was it that this was a planned ramp down where you know a project basically naturally ended its life cycle or was there a change in strategy that 2:08:38 2 hours, 8 minutes, 38 seconds caused this decline and do you also see some of your other large projects also ramping down say in at the end of FI27 or in FI28? 2:08:46 2 hours, 8 minutes, 46 seconds No, very good question and I'm glad you asked that question because it's it's one uh was a plan and we are very proud 2:08:54 2 hours, 8 minutes, 54 seconds to say that it'll be an SDB hitting the ground running uh in a more efficient manner in the next 3 to 6 months. So that's the program that we'll get over. 2:09:03 2 hours, 9 minutes, 3 seconds Um we are already signing up for serial life programs with them. the quantum will not be same as the the large 2:09:11 2 hours, 9 minutes, 11 seconds onetime SDB program that we did but it's it's you know it's the future work that we'll continue to do with this OEM. The 2:09:18 2 hours, 9 minutes, 18 seconds other one was a surprise not only to us but to the rest of the world uh when uh that OEM decided to stop their EV 2:09:26 2 hours, 9 minutes, 26 seconds programs the launch u of this and they decided to take a 15 billion dollar hit onetime hit right on their balance 2:09:34 2 hours, 9 minutes, 34 seconds sheet. Uh so that was a surprise and a you know very unpleasant one uh for us. 2:09:40 2 hours, 9 minutes, 40 seconds Uh but that's life. The other question is u um a in the foreseeable future we 2:09:49 2 hours, 9 minutes, 49 seconds don't see any other programs coming to an upbr. 2:09:54 2 hours, 9 minutes, 54 seconds I'm just quickly scanning all our OEM engagement as you asked that question. 2:09:58 2 hours, 9 minutes, 58 seconds Um not likely at this point in time. you don't see it uh definitely to not definitely to to the tune of what we saw 2:10:07 2 hours, 10 minutes, 7 seconds with this particular OEM right so um um 2:10:14 2 hours, 10 minutes, 14 seconds so that's really the the second part we don't but you know um the reason we talked about building resilience growth is we have to be ready for these kinds 2:10:22 2 hours, 10 minutes, 22 seconds of surprises some are pleasant some are not so pleasant right so irrespective of that we need to learn to grow okay good thank you so 2:10:39 2 hours, 10 minutes, 39 seconds So uh Abisha Gupta from access mutual fund uh so just to start on this quarter there was a decline in the strategic clients uh revenue from the strategic 2:10:47 2 hours, 10 minutes, 47 seconds clients. So the SDV programs which has got stopped in the like it will stop in the next two quarter does it had an incremental impact on the like was they 2:10:56 2 hours, 10 minutes, 56 seconds our strategic client first of all and that had the impact incremental impact in this quarter in that account 2:11:02 2 hours, 11 minutes, 2 seconds first on that and second is a uh yes and on the Japan market uh so basically 2:11:11 2 hours, 11 minutes, 11 seconds Honda is declining for us right and despite of that we are seeing growth in the Japan market so is and incrementally 2:11:18 2 hours, 11 minutes, 18 seconds uh we are saying is the SDP program from them is stopping and that might impact incoming quarters but the growth which we saw in this in Japan market in this 2:11:27 2 hours, 11 minutes, 27 seconds quarter is it a more of a one-time thing or it's going to be like incremental opportunity is there over there but it won't be able to backfill the Honda yet 2:11:37 2 hours, 11 minutes, 37 seconds on this quarter first the the the first question is uh the planned wrapound of one OEM that has been happening uh as it gets to the 2:11:45 2 hours, 11 minutes, 45 seconds production so some of the strategic speific business that has gone down with one planned OEM. it actually started to 2:11:51 2 hours, 11 minutes, 51 seconds impact us not only in Q4 but in Q3 as well right um so little bit happened in 2:11:58 2 hours, 11 minutes, 58 seconds Q3 a little bit happened in Q4 will feel more impact in in Q1 now of that which which has been planned right no 2:12:06 2 hours, 12 minutes, 6 seconds surprises to us uh in that uh the second one was a surprise uh which which it was 2:12:13 2 hours, 12 minutes, 13 seconds a program uh unfortunately very close to the production um right unfortunately 2:12:20 2 hours, 12 minutes, 20 seconds uh so uh it was uh there was a little bit of a reduction in in Q4 but the dramatic reduction actually happens in 2:12:28 2 hours, 12 minutes, 28 seconds Q1 right um as far as the Japan is concerned yes it it you know we've had tremendous growth what we are going to 2:12:37 2 hours, 12 minutes, 37 seconds do in future is not have one pony story in Japan right you saw a partnership 2:12:43 2 hours, 12 minutes, 43 seconds with the tier one now in Japan uh there are three truck and off highway OEMs 2:12:50 2 hours, 12 minutes, 50 seconds that we are targeting and the remaining two pass OEMs that we talked about earlier on especially the big one right 2:12:58 2 hours, 12 minutes, 58 seconds so hopefully it'll it'll take time but the thing is you know in the midterm we'll have lot more 2:13:06 2 hours, 13 minutes, 6 seconds you know broader British growth coming out of Japan got it growth is Asia it has also India growth it's not only Japan 2:13:15 2 hours, 13 minutes, 15 seconds got it sir and secondly so in your second slide on the passenger vehicle spends like from 206 to FI30, we saw 2:13:22 2 hours, 13 minutes, 22 seconds increases happening over there. But so if I look at the European OEMs and their recent uh commentary as well as presentation, everybody till FI 29 seems 2:13:31 2 hours, 13 minutes, 31 seconds to be cutting down their budgets and uh if I compare on the uh Japanese market, we are still very young over there and we are just still growing. So the spends increase which we are seeing over there. 2:13:42 2 hours, 13 minutes, 42 seconds Is it uh more traction from the Indian market uh that is what getting reflected over there and why is that spend 2:13:49 2 hours, 13 minutes, 49 seconds increasing if the biggest market of our Europe Europe uh all the OEMs are starting to cut down on their R&D spends 2:13:56 2 hours, 13 minutes, 56 seconds and they have been very blunt about that in the market. 2:14:03 2 hours, 14 minutes, 3 seconds You want to answer? No, I can I all right so the overall people are cutting costs right especially in Europe and you 2:14:12 2 hours, 14 minutes, 12 seconds know there are it's not necessarily R&D spend the cost is going down so that they can continue to spend money where 2:14:19 2 hours, 14 minutes, 19 seconds it matters to them from future perspective and fortunately for us it it it is also software now within that there are inefficiencies in which they 2:14:28 2 hours, 14 minutes, 28 seconds spend money right working with the local ecosystem you know where the costs are very high and the lock in is a lot 2:14:35 2 hours, 14 minutes, 35 seconds longer right KPIT can provide flexibility uh you know especially given our products and solution we can do all 2:14:44 2 hours, 14 minutes, 44 seconds of this lot more efficiently for them right so that's really our opportunity so overall I think um in markets like 2:14:52 2 hours, 14 minutes, 52 seconds India the west coast of the US China in parts of Korea and Japan the spend will 2:15:00 2 hours, 15 minutes continue to go up and that's the reflection that you Um it's also true in North America for that matter right all the OEMs I I 2:15:07 2 hours, 15 minutes, 7 seconds talked about west coast but I'm also talking about Detroit uh right the spend will go up there is a reset that everybody's trying to do in the last 2:15:16 2 hours, 15 minutes, 16 seconds couple of years I think some of it is behind them so now that there is a clear road map if you look at the reports from 2:15:25 2 hours, 15 minutes, 25 seconds uh McKenzie earlier on the spend percentage went up even more significantly so it's already come down 2:15:32 2 hours, 15 minutes, 32 seconds to some extent and this is the latest one that we have and you know we have our own ways of validating this uh by 2:15:40 2 hours, 15 minutes, 40 seconds having real conversations with the clients. So we believe that this is roughly what it's going to be um we just have to figure out how much of that we can capture going forward. 2:15:50 2 hours, 15 minutes, 50 seconds Got it. And so lastly from my side like uh for beyond F27 we have been very seems to be very confident on our solutions and product side of the business like it will be 50% and more. 2:16:00 2 hours, 16 minutes So the new products which you are taking to our clients it will be like more of a replacement products like which will be our competitor over there or it will be 2:16:08 2 hours, 16 minutes, 8 seconds a fully net new or more uh what do we say uh this uh clients which we have they don't have that tech adoption yet 2:16:16 2 hours, 16 minutes, 16 seconds in their system and this will make them more efficient more operationally effective like what as a like target 2:16:23 2 hours, 16 minutes, 23 seconds client doing so yeah an go yeah so it's a mix no No black and white answer on this. 2:16:32 2 hours, 16 minutes, 32 seconds It's a mix of it. But even for the replacement category, there is obviously new things that we are bringing to the 2:16:39 2 hours, 16 minutes, 39 seconds table and that is why the replacement is uh important. The end to end part of it is there. Uh there is a AI uh introduced 2:16:48 2 hours, 16 minutes, 48 seconds into that and there are few things that are really the new problems uh that we are addressing and we've been working on this for quite some time. So these are 2:16:55 2 hours, 16 minutes, 55 seconds not really new. I mean the early market tests have been done already. 2:17:01 2 hours, 17 minutes, 1 second Another way to answer that question is if you look at products, our products, they're actually replacing something that has been provided by somebody else, right? So it's completely a replacement. 2:17:10 2 hours, 17 minutes, 10 seconds When it comes to our solution, it's a little more disruptive. It's not replacing like to like, but it's replacing an ecosystem to some extent of 2:17:20 2 hours, 17 minutes, 20 seconds UEM. Right? So there is a subtle not subtle obvious difference between the two. 2:17:26 2 hours, 17 minutes, 26 seconds Uh hi Kash this is Somitra from Aventus. 2:17:29 2 hours, 17 minutes, 29 seconds Just continuing the question that Abhishek just asked. Roughly we are around 727 730 million in revenues. In 3 2:17:36 2 hours, 17 minutes, 36 seconds years time even if we were to reach roughly 950 million to 1 billion in revenues. We are targeting around 550 to 2:17:45 2 hours, 17 minutes, 45 seconds 600 million from the solutions and products. And we are currently at about 110 odd million. roughly we will grow 2:17:54 2 hours, 17 minutes, 54 seconds 30% uh this year but for the next two years or next three years in that case the number will have to grow up 3 to 4x 2:18:02 2 hours, 18 minutes, 2 seconds uh is the is the understanding correct I just wanted to understand the back of the envelope calculation yeah absolutely I think there are two 2:18:09 2 hours, 18 minutes, 9 seconds things to it one is uh uh most of the current uh business as we said uh fixed 2:18:16 2 hours, 18 minutes, 16 seconds price was the first step but then that will get converted into uh AI infused solution so that is the first step. So 2:18:24 2 hours, 18 minutes, 24 seconds many of this will get converted into AI infused solution which will give us a better productivity and margins and uh 2:18:31 2 hours, 18 minutes, 31 seconds more ownership and that's why the scale will grow. That's the first part and the second is the product. So I think uh from that perspective 2:18:40 2 hours, 18 minutes, 40 seconds that number would be fine. I think uh we we believe actually that's a nonlinear growth. We just want to 100% we cannot 2:18:49 2 hours, 18 minutes, 49 seconds say but it's a we believe that's a very reasonable number. Okay. And second question is on this market share thing. 2:18:55 2 hours, 18 minutes, 55 seconds Uh when you look yourself with your competitors in any deal especially given the fact that you know Infosys acquired 2:19:04 2 hours, 19 minutes, 4 seconds IntL acquired ASAP when you do a volume based market share calculation 2:19:10 2 hours, 19 minutes, 10 seconds in the last 12 to 18 months of all the deals that have happened in the market has there been any market share loss? uh 2:19:18 2 hours, 19 minutes, 18 seconds I mean you would have ended up winning six deals in a normal scenario. Has the competition increased which resulted in six maybe coming down to five or so? 2:19:28 2 hours, 19 minutes, 28 seconds Uh you can look at uh the the revenues of the acquired some entities which you talked about or this all these uh what 2:19:37 2 hours, 19 minutes, 37 seconds what has happened to their revenues actually. So to answer very quickly, we have not seen any loss uh to this. 2:19:45 2 hours, 19 minutes, 45 seconds Actually in Europe specifically, we are looking our biggest opportunity is uh consolidation which is happening and 2:19:53 2 hours, 19 minutes, 53 seconds JPIT is certainly a major beneficiary of Okay, thank you. Thanks. 2:20:03 2 hours, 20 minutes, 3 seconds Yeah. Hi, it's Kavajit from Kodak institutional equities. Um can you hear me? Can you speak up a little bit please? 2:20:09 2 hours, 20 minutes, 9 seconds Yeah. Hi, it's Kabuljit from Kodak Institutional Equities. Uh my question is uh that uh in Europe there are plenty 2:20:17 2 hours, 20 minutes, 17 seconds of assets available uh for sale. There's Bertrand, EDAG, maybe there are a lot of players attached to the Kariat 2:20:24 2 hours, 20 minutes, 24 seconds ecosystem. Uh you know do do any of those assets interest you? And second is that uh you know in mechanical 2:20:31 2 hours, 20 minutes, 31 seconds engineering u uh you know there are there any parts of the mechanical engineering ecosystem which should be of interest to KPIT or would the focus continue to be on embedded and software. 2:20:42 2 hours, 20 minutes, 42 seconds So uh coming to your first question I think uh uh you look at their performance most of these companies are struggling both in terms of revenue and 2:20:51 2 hours, 20 minutes, 51 seconds this having so many employees in that part of the world with uh uh less than 35 hours a week with that kind of a cost 2:21:00 2 hours, 21 minutes is a liability in some sense and uh even the companies who own it just to most of these companies you're talking about 2:21:08 2 hours, 21 minutes, 8 seconds some of the OEMs have a stake in these companies But they are preferring to move away because from their perspective the value 2:21:16 2 hours, 21 minutes, 16 seconds is actually reducing their cost bringing bringing innovation bringing the best practices from the other organizations. 2:21:24 2 hours, 21 minutes, 24 seconds So they are moving. So from that to uh so shortly uh uh we we have seen all 2:21:30 2 hours, 21 minutes, 30 seconds these assets uh and I think uh uh as Anup said some of the disruptions which 2:21:37 2 hours, 21 minutes, 37 seconds are coming and the com the kind of products and solutions we we are bringing they're far superior to what these companies have. So that is the 2:21:45 2 hours, 21 minutes, 45 seconds first question and of course they are not cost competitive which is a biggest concern for the OEMs. So that is the first on the mech mechanical side. I 2:21:54 2 hours, 21 minutes, 54 seconds think the uh carsoft acquisition which when we did I think there are two things first is uh is very important in offway 2:22:02 2 hours, 22 minutes, 2 seconds commercial because there is overall mechanical content is high so in some of these areas uh you know it's a it's 2:22:10 2 hours, 22 minutes, 10 seconds important uh in the pascar cost reduction is a very important part so we are focusing on the cost reduction part wherever there we can bring the cost 2:22:18 2 hours, 22 minutes, 18 seconds reduction and third part which we are focusing is the manufacturing part uh manufacturing efficiency because that's where they are trying to reduce the cost 2:22:27 2 hours, 22 minutes, 27 seconds of manufacturing as Sachin mentioned earlier like Europe or other parts. So we are uh so we have got some of these 2:22:34 2 hours, 22 minutes, 34 seconds capabilities uh ourselves as well as through the acquisition of KO. So that's what we are. 2:22:47 2 hours, 22 minutes, 47 seconds Just a follow-up question. Uh if you look at uh uh the German car manufacturers, they have uh you know especially uh the one uh it's whose name 2:22:56 2 hours, 22 minutes, 56 seconds starts with VI. Uh they have found out multiple contracts away from the likes of EAG and etc to offshore players. But 2:23:04 2 hours, 23 minutes, 4 seconds there have been massive delays and in some cases not even ramp ups. uh what explains the reluctance uh for uh 2:23:13 2 hours, 23 minutes, 13 seconds actually uh those uh ramp up in contracts which have been delayed for very long time. 2:23:18 2 hours, 23 minutes, 18 seconds I did not get that we that is trying to consolidate the business to India. 2:23:25 2 hours, 23 minutes, 25 seconds Ah and he what his question is is the he thinks that the ramp up is not happening. 2:23:32 2 hours, 23 minutes, 32 seconds Okay. Okay. I think the if I mean I cannot go into details about every OEM 2:23:39 2 hours, 23 minutes, 39 seconds but in this case if you can check their best biggest success or the largest part of their success whatever they have got 2:23:46 2 hours, 23 minutes, 46 seconds is with KPI so so they're seeing the success they have seen the success of 2:24:13 2 hours, 24 minutes, 13 seconds Hello. 2:24:15 2 hours, 24 minutes, 15 seconds Yeah. Hi. Uh this is uh Rahul from Dalat Capital. Uh so uh to you know Sachin you 2:24:22 2 hours, 24 minutes, 22 seconds talked about that wallet share expansion thought process uh from uh 10% plus now to eventually going to 20 uh 20%. So is 2:24:31 2 hours, 24 minutes, 31 seconds this going to come uh because of our cost effectiveness uh solutioning or some of that AI harness thing that you 2:24:40 2 hours, 24 minutes, 40 seconds talked about in that Anub's chart. So what are the key drivers for that? 2:24:44 2 hours, 24 minutes, 44 seconds Uh all of the above. uh in all honesty it's all of the above. Um essentially we 2:24:51 2 hours, 24 minutes, 51 seconds just have to help them uh you know essenti so what we are trying to do is 2:24:58 2 hours, 24 minutes, 58 seconds we have to help them create efficiency within their own system correct I think that's the part and that's why you know 2:25:07 2 hours, 25 minutes, 7 seconds our solutions are going to be helpful um you know use of AI in the programs that we deliver is going to be very useful 2:25:14 2 hours, 25 minutes, 14 seconds and that's what is really that's what is creating differentiators so um uh when we are working on any kind of 2:25:21 2 hours, 25 minutes, 21 seconds engagements in a competitive scenario, we end up winning not because we offer the lowest cost but we offer the highest 2:25:29 2 hours, 25 minutes, 29 seconds reliability and the greatest return on their investment. Uh right. So that has been sort of the the differentiator for 2:25:36 2 hours, 25 minutes, 36 seconds us. Um and uh you know we believe that all all three things that you mentioned are going to help us to go from uh let 2:25:45 2 hours, 25 minutes, 45 seconds me correct myself the 10% wallet share it will increase by 20% in the immediate future right it will 2:25:54 2 hours, 25 minutes, 54 seconds not move from 10 to 20% of their wallet share it will increase by 20% uh this year uh that's really the goal that we 2:26:01 2 hours, 26 minutes, 1 second are taking uh in every cell um and we believe that this is how we we going to do uh AI is going to be a big part of that. 2:26:09 2 hours, 26 minutes, 9 seconds Uh our products are going to be a good part of that. Uh that's all that I can say. 2:26:17 2 hours, 26 minutes, 17 seconds Yeah. Just uh last one uh for Kish uh you talked about that uh that 30% kind of a growth is a possibility on the 2:26:24 2 hours, 26 minutes, 24 seconds product solution side uh which sorry can you Yeah. Yeah. And the the other maths of 2:26:32 2 hours, 26 minutes, 32 seconds it is like some part of our existing services pool would kind of be converted into the product solution uh bucket. So 2:26:40 2 hours, 26 minutes, 40 seconds in that process do we see some kind of shrinkage that might happen to our existing scope of work or it will not harm that uh in a short term? 2:26:51 2 hours, 26 minutes, 51 seconds No, it won't harm uh in that way. uh in one or two cases it can happen smaller projects but largely the idea is to take 2:26:59 2 hours, 26 minutes, 59 seconds a larger responsibility and take the ownership. So uh there will be an efficiency but you are doing a more work so that's how it will compress. 2:27:09 2 hours, 27 minutes, 9 seconds Sure. Thank you. All right. 2:27:14 2 hours, 27 minutes, 14 seconds Thank you so much for all the answers and for the questions. We still have time for one last question and after that we will be ending the session. Do 2:27:23 2 hours, 27 minutes, 23 seconds we have anyone final question to be asked? You can raise your hands in case. 2:27:35 2 hours, 27 minutes, 35 seconds Good evening and thanks for taking the followup. Just want to understand the simotive acquisition and also some of the work that it does. So if I look at 2:27:43 2 hours, 27 minutes, 43 seconds the historical revenues, there was a sharp gain for the company in the last two years. So what drove that? And also can I get a sense of other than 2:27:51 2 hours, 27 minutes, 51 seconds Volkswagen does the company work with some other clients as well and what's the strategy for the company? Yeah, I'll pick the technology. 2:27:58 2 hours, 27 minutes, 58 seconds Uh so before you answer the question, can we just request him to also introduce himself? Could you please also tell your name and organization? This is Mo Chandani from Amitia. 2:28:07 2 hours, 28 minutes, 7 seconds Thank you. Hello. Can you hear me? 2:28:10 2 hours, 28 minutes, 10 seconds Yeah. If you look at uh almost all the acquisitions that we have done or all the partnerships that we have done, we 2:28:18 2 hours, 28 minutes, 18 seconds are taking a look at an expertise which is probably constrained by something but we know that it is a great uh expertise 2:28:25 2 hours, 28 minutes, 25 seconds and then we basically try to look at how to take that expertise to the rest of the customers that we have in simotive. 2:28:32 2 hours, 28 minutes, 32 seconds If you look at it from a cyber security perspective, there are like loads of offerings. I mean we didn't talk about 2:28:39 2 hours, 28 minutes, 39 seconds most of them but if you look at in vehicle and outside the vehicle so there is a good portfolio of uh work that is 2:28:48 2 hours, 28 minutes, 48 seconds know way ahead of everything else that has been done and then you look at uh the competency of the people there uh 2:28:56 2 hours, 28 minutes, 56 seconds what they are capable of doing especially in the context of what is going to happen in the future uh AI is going to create more cyber security 2:29:04 2 hours, 29 minutes, 4 seconds challenges quantum has been advanced so 2030 35 has come down to 2029. So if you look at these two or potential threats 2:29:12 2 hours, 29 minutes, 12 seconds that will happen in the future, the competency of the people and the solutions that they have are extremely 2:29:19 2 hours, 29 minutes, 19 seconds relevant and now we basically would like to take them to other customers. 2:29:24 2 hours, 29 minutes, 24 seconds I think on the carrier side I think it is the same cost issue. they moved their strategy to move 2:29:32 2 hours, 29 minutes, 32 seconds to India most of the work and they already into multi-million vehicles and uh they find it a great uh win-win 2:29:40 2 hours, 29 minutes, 40 seconds because KPI is their trusted partner as you can you can see the quote from Kiad 2:29:47 2 hours, 29 minutes, 47 seconds and uh then the consolidation and uh that that is how the re the revenue came down because of that and also of the 2:29:55 2 hours, 29 minutes, 55 seconds cycle of the carad during that time because carrier overall business also movement was a bit impacted during that time but I think there is a bigger 2:30:04 2 hours, 30 minutes, 4 seconds opportunity there but more importantly as San said I think we can take it to other the biggest advantage to that is it is in multi many millions of vehicles 2:30:12 2 hours, 30 minutes, 12 seconds already which gives us a confidence or other OEM 2:30:24 2 hours, 30 minutes, 24 seconds thank you so much for all the answers and with this uh we would like to conclude today's session. Thank you so 2:30:31 2 hours, 30 minutes, 31 seconds much for being with us and uh