Mastek Ltd — Q4 FY26

Mastek Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=S9towtrxB2A Published: 3 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to Masttec Limited Q4 F526 earnings conference call. As a reminder, all participant lines will be in the 0:09 9 seconds listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an 0:18 18 seconds operator by pressing star then zero on your petstone for please note that this conference is being recorded. I now hand the conference over to Miss Asha Gupta 0:27 27 seconds from ENY Invest Relations. Thank you and over to you M. Thank you Renju. 0:34 34 seconds Good morning to all of you and welcome to Q4 FIR26 earnings call of Masttec Limited. The results and presentation 0:42 42 seconds have already been mailed to you and you can also view it on our website www.mmastc.com. 0:49 49 seconds To take us through the result today and to answer your questions, we have the top management of Masttec represented by 0:56 56 seconds Omang Nhata the CEO of the company and Deepak Kadia, chief financial officer. 1:02 1 minute, 2 seconds Omang will start the call with the business update for the quarter which will be then followed by Deepak who will take us through the financials and post 1:10 1 minute, 10 seconds that we will open the floor for Q&A session. As usual, I would like to remind you that anything mentioned in this call that reflects any outlook for 1:18 1 minute, 18 seconds the future or which can be construed as forward-looking statement must be viewed in conjunction with the risk and uncertaintities that we face. This risk 1:27 1 minute, 27 seconds and uncertainties are included but not limited to what we have mentioned in the prospectors file with SEI and subsequent annual report that you can find on our 1:36 1 minute, 36 seconds website. Having said that, I will now hand over the calls to Omang Nata. Over to you Om. 1:43 1 minute, 43 seconds Thank you Asha. Very good morning everyone and thanks for joining the quarterly update for Master Limited. 1:50 1 minute, 50 seconds Our Q4 results uh has been a stable quarter and despite the various uh macro 1:57 1 minute, 57 seconds and geopolitical headwinds, we've been able to deliver a 3.6% quarteron-quarter 2:04 2 minutes, 4 seconds uh revenue growth and continue to maintain a stable IBIDA performance at 16.1%. 2:11 2 minutes, 11 seconds Our order backlog in INR terms has also grown by 7.2%. And the consecutive number in USD terms is 1.6%. 2:20 2 minutes, 20 seconds So overall uh stable quarter despite of uh the various headwinds. Having said that the consistent order book 2:27 2 minutes, 27 seconds performance as well as the demand uh positive movement that we have seen gives us a very positive outlook as we go forward into F27. 2:39 2 minutes, 39 seconds As we step into sectoral performances, healthcare and life sciences which is one of our most important sectors uh 2:46 2 minutes, 46 seconds continues to see a very positive demand outlook. Although the current performance of this quarter has seen uh quarteronquarter dip which is primarily 2:54 2 minutes, 54 seconds a timing gap between current projects uh that uh getting executed and new projects getting started and we feel 3:02 3 minutes, 2 seconds positive that uh the growth will come back in the sector soon. As far as public sector is concerned, which is the backbone of Mastex growth, it continues 3:10 3 minutes, 10 seconds to be stable. We've renewed uh few more contracts of ours for a good long-term visibility and we continue to deliver really well. 3:20 3 minutes, 20 seconds The star of the quarter was financial services and we're starting to see some really good improvement in our financial services sector. uh back based on the 3:28 3 minutes, 28 seconds order book that we closed earlier in the quarter with two large uh financial services institutions in North America as well as other financial services 3:36 3 minutes, 36 seconds clients in US sorry the financial services institutions in UK and uh other financial services customers in North 3:45 3 minutes, 45 seconds America and AMIA. Our financial services sector is starting to deliver well as the revenue and resources ramp up. 3:51 3 minutes, 51 seconds Retail and manufacturing continues to be a stable performance uh although there is uh you know timing dip of around 2% in that particular vertical. 4:02 4 minutes, 2 seconds As far as our focus and execution on AI is concerned as we have been mentioning our we have quite a distinguished 4:09 4 minutes, 9 seconds approach to AI uh and we're starting to see some positive results based on the approach and strategy that we have been pursuing for the last uh few quarters. 4:19 4 minutes, 19 seconds our net new AI focused customer projects or programs that we've added in the quarter were more than 27 C uh programs 4:27 4 minutes, 27 seconds that we have added and these includes both AI for tech and AI for uh business uh related programs including uh some 4:35 4 minutes, 35 seconds significant AI road map and AI for business programs that we've added uh in this current quarter. Our AI focused 4:43 4 minutes, 43 seconds execution as well as our operational uh excellence has also ensured that despite of the severe pricing competitiveness in 4:50 4 minutes, 50 seconds the market, we're able to maintain a stable profit margin and we continue to maintain that. 4:57 4 minutes, 57 seconds Reflecting on the year that has gone by, FY26 has been a year which has been uh various fundamental resets for Masttec. 5:06 5 minutes, 6 seconds Uh as far as our focus is concerned, we re reestablished our focus and investment in our UK Europe business. Uh 5:14 5 minutes, 14 seconds backed by the phenomenal team as well as strong market presence that we have in the geography. Our UK and Europe business uh grew around 11% in pound 5:24 5 minutes, 24 seconds terms and 21.8% in INR terms. within the UK business, our healthcare business uh 5:31 5 minutes, 31 seconds continues to be our dominant growth uh factor which grew around uh 24% uh in dollar terms and 90 plus sorry uh 5:39 5 minutes, 39 seconds 90 plus% uh in INR terms uh for the fiscal year FY26. 5:45 5 minutes, 45 seconds The healthcare growth largely focused on NHS as a key customer and uh we continue to deliver some of the most significant 5:54 5 minutes, 54 seconds uh programs for the UK government and also delivering a lot of innovative expansion using data and AI capabilities. 6:02 6 minutes, 2 seconds Uh as we go forward into North America, this was a year of resetting. We've now reset the complete team at North America. We've also reset our focus and 6:11 6 minutes, 11 seconds uh priorities that we take into the geography. Uh healthcare and life sciences continues to be the key focus going forward along with DFSI uh and 6:19 6 minutes, 19 seconds retail as we step into FY uh 27. We believe uh we see a very positive 6:27 6 minutes, 27 seconds turnaround uh you know around the corner in North America. uh while as our order book and other lead indicators start to improve quarteron quarter, we've had a 6:35 6 minutes, 35 seconds second quarter of positive order book growth in North America and uh we see we have good visibility to a strong order 6:43 6 minutes, 43 seconds book even uh continuing in the coming quarters uh which should uh soon result in uh positive revenue growth as we step 6:51 6 minutes, 51 seconds into F427 on our AMIA business which is our APAC and Middle East business. This was a year of stabilizing and resetting the client focus that we have in the region. 7:02 7 minutes, 2 seconds As far as our focus and verticals again healthcare backed by Oracle health continues to be our core focus dominant area, our Middle East business while is 7:11 7 minutes, 11 seconds facing some short-term headwinds because of the significant geopolitical turbulence in the region. while we maintain a stable uh performance 7:20 7 minutes, 20 seconds forecast for the uh short-term period in the in the region. Having said that, we are closely watching the geopolitical developments. All our employees and customers are currently safe and secure. 7:33 7 minutes, 33 seconds On an AI front, like I'd said, our focus was on AI for technology. Last year we've delivered significant efficiency gains across our internal as well as uh 7:42 7 minutes, 42 seconds provided a lot of efficiency gains to our employees on an overall basis. We delivered more than 12% increase in our revenue per resource uh in the year. Uh 7:52 7 minutes, 52 seconds also delivering uh lots of efficiency and gainbacks to our clients and customers. Our focus is now shifting significantly towards AI for business as 8:00 8 minutes we look at uh many new programs where we have started delivering some small but very influential AIE use cases for our 8:08 8 minutes, 8 seconds clients. As we step into the year, verticalizing the business based on AI is going to be a key mantra for FI27. 8:16 8 minutes, 16 seconds Uh with those updates, I'll now hand over to Deepak to share some of the other uh financial updates for the 8:23 8 minutes, 23 seconds business. Thank you. Thank you Asha. A very warm welcome to everyone on the call and thank you for taking time to attend Masttec's earning call. I'll 8:31 8 minutes, 31 seconds start with the quarters numbers update and then talk about the fullear earnings plus I'll also talk about some other updates which has impacted uh FI25 8:39 8 minutes, 39 seconds numbers as well as FI26 numbers. In Q4 we reported revenue of $103.5 million sequentially up by 1.5 1.4% and an operating IITA of 16.1%. 8:51 8 minutes, 51 seconds On a constant currency basis, revenue remained largely flat with a marginal sequential growth of 0.3%. 8:57 8 minutes, 57 seconds We had salary increase impact of 1.1 million which is almost 1.1% impact on IITa. Despite this, we were able to hold 9:05 9 minutes, 5 seconds our IITa at 16.1% due to forex tailwind of8% and execution of cost efficiencies. 9:12 9 minutes, 12 seconds The IBITa performance again underscores the strength of our operating model, disciplined execution and continued focus on cost optimization. In rupee 9:20 9 minutes, 20 seconds terms, we reported revenue of 938 cr, a sequential growth of 3.6% and a y-on-y growth of 3.6%. We reported pat of 106 9:29 9 minutes, 29 seconds crores, which is 11%. There's a decline of 7% sequentially impact due to true up impact of labor code and I'll cover that 9:38 9 minutes, 38 seconds in a while. We closed the year with 12 month backlog of 300 300.4 4 million a sequential growth of 1.5% and a Y-on Y 9:47 9 minutes, 47 seconds growth of 13.5% in USD and 24.4% in INR terms. For full year we reported dollar revenue of 421.2 million up 3.1% Y on Y. 9:58 9 minutes, 58 seconds We reported an IITA of 15.8% for the full year which is same as previous year despite pricing pressures and macroeconomic situations in our key 10:06 10 minutes, 6 seconds geographies. This again reflects the resiliency and strength of our alay operating model combined with disciplined execution. In rupee terms, 10:14 10 minutes, 14 seconds we reported revenue of 3,699 cr a yon growth of 7%. We reported pat of 404 cr 10:22 10 minutes, 22 seconds a y on y growth of 7.5%. However, in terms of percentage of total income, it was 10 10.7% which is flat on Yony basis 10:31 10 minutes, 31 seconds primarily due to catchup impact of 30 cr due to labor code changes which had almost8% impact on fullear PAT. We 10:38 10 minutes, 38 seconds reported a basic EPS of 130.45 which was up 7.1% compared to last year and diluted EPS of 129.5 up 7.3% compared to 10:48 10 minutes, 48 seconds last year. As regards labor code impact, as I mentioned in Q3 earnings call, we expected an adjustment in Q4 based on clarification from the labor department. 10:57 10 minutes, 57 seconds During the quarter, we recognized an exceptional and incremental impact of 23.7 cr which includes graduity of 16 cr 11:04 11 minutes, 4 seconds and leave and catchment of 7.7 cr. This impact is in addition to 6.4 cr which was reflected in Q3 which had graduity 11:12 11 minutes, 12 seconds of 5.3 cr and leave and catchment of 1.1 cr. Following subsequent clarification from the labor ministry and an independent external review, we have now 11:21 11 minutes, 21 seconds fully reflected the impact in this quarter's financials. We have classified the true-up impact as exceptional item below IITA which resulted in Q3 11:29 11 minutes, 29 seconds reinstatement of IBITA as well. The Q3 IITA has improved from 16.1% to 16.8%. 11:37 11 minutes, 37 seconds As I mentioned in Q3 earnings call, the labor code impact got offset by one-time benefits in Q3 and hence we see the revised EIA to be higher in Q3 which are 11:46 11 minutes, 46 seconds primarily onetime benefit related to leave reversals which happens in UK and US uh because of the Q3 quarter. Moving 11:54 11 minutes, 54 seconds on to the cash position of the company during the year we generated 542 crores of operating cash which is up 35% Y on 12:01 12 minutes, 1 second Y. Our cash and cash equivalence as at the end of March 26 was 938 cr up 51% 12:08 12 minutes, 8 seconds compared to March 25 ending. During Q4 of 26, we had a very strong collection quarter from our customers wherein we 12:15 12 minutes, 15 seconds collected $125 million which helped us reduce our DSO to 73. This is the lowest DSO we've had in last 12 quarters. 12:24 12 minutes, 24 seconds Reflecting continued confidence in the business, we are pleased to declare final dividend of rupes 16 per share. 12:30 12 minutes, 30 seconds This is on top of rupees 8 enduring dividend which we declared during Q3 uh results. This is basically for 480% of 12:36 12 minutes, 36 seconds our uh face value of the shares. Moving on to some geospecific performance both UK and army grew sequentially in Q4 12:45 12 minutes, 45 seconds whereas US was largely flat on account of right shifting of some of the projects. UK continues to maintain healthy width of almost 20%. 12:54 12 minutes, 54 seconds Some business parameters now. New customers added during the quarter were 12. Total closing headcount was 4730 and addition of 54 during the quarter. 13:03 13 minutes, 3 seconds Utilization rate improved during Q4 to 80% which was an improvement of 3.3% from Q3 and 1.7% from Q2. Last update on 13:12 13 minutes, 12 seconds some operational parameters during the year we merged two entities in India which is Masttec Enterprise Solutions Private Limited and Masttec Limited. 13:20 13 minutes, 20 seconds Mast enterprise solution private limited is was a wholly owned subsidy of Masttec limited. This has been done to simplify the entity structure in India and to 13:28 13 minutes, 28 seconds eliminate duplicate operational and administrative cost and overheads. 13:32 13 minutes, 32 seconds Consequently, FI25 balance sheet has been restated. Now I will hand over the call to Asha to open up for Q&A. Thank you. 13:42 13 minutes, 42 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone telephone. If 13:50 13 minutes, 50 seconds you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies 13:58 13 minutes, 58 seconds and gentlemen, we will wait for a moment while the question queue assembles. 14:05 14 minutes, 5 seconds The first question comes from the line of Ankurkumar with Alpha Capital. Please go ahead. 14:11 14 minutes, 11 seconds Hello sir, thank you for taking my question. Uh sir I wanted to understand in terms of revenue growth this year has 14:18 14 minutes, 18 seconds been not that exciting as in only 3% YI growth but our order book has grown quite well this year ending closing 14:26 14 minutes, 26 seconds order book is quite good. So when do can we expect uh first half of next year to be much better in terms of growth rate. 14:35 14 minutes, 35 seconds Hi I'm good this is Omang here. Uh yes, we've had a decent performance in terms of our order book as well as our uh 12-month order backlog has improved uh 14:44 14 minutes, 44 seconds you know significantly over the last uh fiscal year. All uh as we step forward into FY27, we believe we have a you know 14:53 14 minutes, 53 seconds strong uh and positive momentum behind us. Having said that uh as you also understand that we are dealing with a 15:00 15 minutes very unstable uh macro environment as well as uh a lot of AIEL pricing pressure. The revenue ramp up on the 15:08 15 minutes, 8 seconds order backlog has already started and will start reflecting in our uh revenue soon. Uh on the other hand uh we will 15:16 15 minutes, 16 seconds maintain a cautiously positive uh attitude on the book and ship that we have to deliver for the next year. So we believe it will be a uh growth year next 15:24 15 minutes, 24 seconds year uh based on the fundamentals that have improved in this fiscal but would you like to give a rough guidance on in terms of how much growth 15:32 15 minutes, 32 seconds you expect to expect double digit or how much how or in in line with order book as in 20% growth what kind of growth can we expect for next year usually we don't 15:41 15 minutes, 41 seconds give guidance on future numbers having said that we believe it will be a better performance than the previous year 15:49 15 minutes, 49 seconds got it sir and sir on margins side we have taken price uh employee request hike. So what kind of margin can we expect? Do we expect improvement going ahead or how should we look? 15:59 15 minutes, 59 seconds U as you have stated earlier Ankur uh we believe uh maintaining margin percentage for the coming period at 16 16.1% is uh where we see the uh margin performances. 16:11 16 minutes, 11 seconds This is based on two factors. uh while we consistently have improved our operational efficiency as well as we also see a lot of AIEL efficiency 16:19 16 minutes, 19 seconds improvement on the other hand uh the price competitiveness as well as the efficiency and budget uh reduction asks 16:27 16 minutes, 27 seconds from the client continues so we're trying to balance the two and uh also investing into new AI investments that 16:34 16 minutes, 34 seconds the organization has to make to further enhance his strategic capabilities so putting all the three together uh we continue to be looking at a stable margin for FI27. 16:45 16 minutes, 45 seconds Got it sir. And sir on on the AI side like there is lot of chatter that this traditional business model where we hire 16:53 16 minutes, 53 seconds employee and they get billing per hour rate. So that is under threat. So what is our view on that front sir? 17:01 17 minutes, 1 second So Ankur uh there's no doubt that the developments and uh evolution in AI is significantly evolving. uh the entropic 17:10 17 minutes, 10 seconds release has uh further significantly enhanced the capabilities of the tool in terms of productivity as well as our ability to do things faster and better. 17:19 17 minutes, 19 seconds uh the way we are looking at this business is uh again our belief is the TNM model will give way to more outcome 17:26 17 minutes, 26 seconds focused model and uh FY26 as I'd said was more focused on efficiency and stabilizing our ability to deliver AIE 17:35 17 minutes, 35 seconds SDLC or testing or managed services which we call AI for tech uh as we step into FY27 uh it's going to be much more 17:43 17 minutes, 43 seconds around AI for business which is we will use AI for delivering uh projects and programs that will deliver tangible 17:50 17 minutes, 50 seconds measurable benefits to our clients and uh we also feel that while the technology is available there will be 17:57 17 minutes, 57 seconds enough services need to really uh get the technology adopted for delivering these tangible business outcomes. So the 18:05 18 minutes, 5 seconds model will be moving from uh TNM to a more outcome focused commercials. 18:12 18 minutes, 12 seconds Yes sir. Thank you and all the way. Thank you. 18:17 18 minutes, 17 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. 18:29 18 minutes, 29 seconds Once again a reminder to all the participants that have pressed star and one to ask a question. 18:37 18 minutes, 37 seconds Next question comes from the line of Shashan with Anandati. Please go ahead. Hi, I hope my voice is audible. 18:45 18 minutes, 45 seconds Yes, you are. Uh so just uh two questions. Do we have a order book recover by geography and how is that 18:53 18 minutes, 53 seconds grown? Uh across US, you can that's one and uh the second is effectively on the tax rate. What do we expect the ste 19:02 19 minutes, 2 seconds state tax rate to be? I think those are two questions. Yeah. 19:08 19 minutes, 8 seconds So on the order backlog uh uh the 12 month order backlog has uh increased uh 19:16 19 minutes, 16 seconds definitely increased significantly in our UK business while there is uh order book improvement in North America. 19:22 19 minutes, 22 seconds However, the 12-month order backlog has not uh increased significantly while we see uh uh positive you know uh momentum 19:32 19 minutes, 32 seconds from uh from where we are. uh as far as uh the uh tax rates is concerned Deepak could explain that more. 19:40 19 minutes, 40 seconds Yeah. So on the tax rate uh the reason why you see a lower tax rate um in Q4 is because we had completed few of the past 19:49 19 minutes, 49 seconds year assessments and based on that there was some provision reversal and again that came from the guidance from our tax consultants that's why you see a lower 19:58 19 minutes, 58 seconds tax rate. uh going forward our average tax rate effective tax rate is 24.5 to 20:04 20 minutes, 4 seconds 24.7%. We uh we expect the same to continue in the future quarters as well. 20:12 20 minutes, 12 seconds Okay. Uh and and is there any one-off this time in the AMIA business because there was sort of a war revenue that was 20:19 20 minutes, 19 seconds about to come uh if I'm not wrong in Q2, right? So has that translated into revenues or uh Yeah. 20:27 20 minutes, 27 seconds Yeah. So shan so the Amya war revenue we have been able to recognize it in this quarter which has helped us keep the business stable the current situation is 20:36 20 minutes, 36 seconds while the business continues and the projects are getting executed however the decision making on the net new orders or discretionary spend uh as 20:44 20 minutes, 44 seconds expected uh has slowed down uh the general interest and execution is on but 20:52 20 minutes, 52 seconds uh new decision- making uh is currently uh right shifted uh sorry would it be possible to quantify that uh amia a bit? 21:02 21 minutes, 2 seconds So uh from a like I said from a revenue standpoint since we had war revenues we were able to it was around half a million worth of war revenue that we 21:09 21 minutes, 9 seconds were able to recognize uh that we you know we had postponed in Q2 we were able to recognize that this uh in this uh quarter. 21:17 21 minutes, 17 seconds Thank you so much. Thanks. 21:22 21 minutes, 22 seconds Thank you. Next question comes from the line of Vinewala with HDFC securities. Please go ahead. 21:30 21 minutes, 30 seconds Yeah sir, thanks for giving me the opportunity. Uh two three questions from my end. Uh firstly on the margin front 21:37 21 minutes, 37 seconds for US as well as the Middle East margins are down Y basis. So can you throw some light on that as well on sequential basis the margins are down? 21:50 21 minutes, 50 seconds So on the UK and AMIA uh uh especially in the uh sorry in the North America and 21:56 21 minutes, 56 seconds AMIA business. So on North America uh it's mostly the pressure of the you know revenue still stabilizing as well as the 22:04 22 minutes, 4 seconds impact of the wage hike that we've given in the uh in the quarter on the AMIA business. uh similar uh areas while our 22:13 22 minutes, 13 seconds cost uh you know numbers continue to be stable but our revenue did not move significantly and then since we did the 22:20 22 minutes, 20 seconds wage hike uh that was impacted uh during the uh quarter so that's why the sequential performance is low for this 22:27 22 minutes, 27 seconds quarter okay so sir the wage hike uh during this quarter has a full impact in this 22:34 22 minutes, 34 seconds quarter or there is some uh impact which would be there in Q1 as well no it has the full impact Dr. 22:42 22 minutes, 42 seconds Okay. So, next uh second question was on the healthcare vertical. Sir, as you highlighted there was uh healthcare was impacted by the timing gap of projects. 22:53 22 minutes, 53 seconds So, it has been declining. So, how is it related to US or uh UK public NHS? 23:01 23 minutes, 1 second Uh it has happened in both the geographies. uh our UK business uh which saw a significant growth in healthcare 23:09 23 minutes, 9 seconds last year. Uh some of the projects we have now been delivering and have gone to the delivery stage. Uh so they've gone live and the newer programs uh are 23:19 23 minutes, 19 seconds yet to be contracted and started but we have very positive demand as well as uh outlook uh in that business. On the 23:26 23 minutes, 26 seconds North America business also as you know our North America business had a lot of project based business in healthcare. So we've seen ramp down because these 23:35 23 minutes, 35 seconds projects are going live. Uh we're positive that it'll recover as new projects start to ramp up. 23:41 23 minutes, 41 seconds Okay. Okay sir. Uh last thing from my side on the AIE order book. Uh can you help us understand the ramp up of that 23:50 23 minutes, 50 seconds and profile as well as the margin in that AI deals which we want? 23:58 23 minutes, 58 seconds So uh the AIE deals that we are currently seeing are in two categories. 24:03 24 minutes, 3 seconds Uh these are AIEL technology deals where we are using AI for delivering uh you know newer programs which are uh you 24:12 24 minutes, 12 seconds know like legacy modernization or AI testing or managed services kind of deals. Uh and I call them AIL because 24:19 24 minutes, 19 seconds most of these deals have significant between 70 to 80% usage of AI for delivering the execution of these uh deals. That's what we calling as AI 24:28 24 minutes, 28 seconds deals. Uh the second category of deals that we are seeing are more like I said the AI use case deployments. Now these 24:35 24 minutes, 35 seconds are early stages most quite a few of them are in the discovery kind of programs where we're working with our clients to identify their enterprise AI 24:43 24 minutes, 43 seconds plan and also delivering a few small but very impactful use cases which will set the stage for much larger adoption as we 24:51 24 minutes, 51 seconds go forward. Uh on the margin front uh these are within the same range of our current gross margin percentages. Uh nothing exceptional uh there. 25:04 25 minutes, 4 seconds Okay. Thank you. Thank you sir. That's it for me. Thank you. 25:11 25 minutes, 11 seconds Thank you. Next question comes from the line of Farun Kulkarni with Ink AMC. Please go ahead. 25:18 25 minutes, 18 seconds Hi M thanks for the opportunity. So a couple of questions from my end. uh the first one would be would acquisitions be 25:24 25 minutes, 24 seconds a strategy to enhance uh the AI vertical given that cash has now increased on our books. So that that's one question I had 25:32 25 minutes, 32 seconds and then I'll subsequently ask the others other questions. So Vun we are uh 25:39 25 minutes, 39 seconds actively looking at uh you know the best use of the cash on our books as it continues to grow quarteron quarter. M&A 25:46 25 minutes, 46 seconds clearly is an important part uh of that decision and discussion as we look forward to Our M&A thesis as we look at 25:53 25 minutes, 53 seconds it now is very tightly aligned to our uh vertical uh and our vision strategy 26:00 26 minutes which is trying to move to AIEL vertical growth in these businesses. We believe uh 26:08 26 minutes, 8 seconds there's some background from your side if you could mute. 26:13 26 minutes, 13 seconds uh we believe the current focus uh from an M&A standpoint will be more on expanding mastc domain capabilities in some of our core focus uh domain areas. 26:24 26 minutes, 24 seconds We will also look at some uh strategic but smaller AI investments and partnerships uh with some of the uh 26:31 26 minutes, 31 seconds significant uh you know AI uh players that are coming around. So it's AI is more around smaller investments but 26:39 26 minutes, 39 seconds larger partnerships with key players and uh the M&A would be more around uh vertical focus. 26:48 26 minutes, 48 seconds Got that? Thanks for the clarification. 26:50 26 minutes, 50 seconds Uh second question would be on the order book front uh what would be the average tenor or the period or rather the uh 26:57 26 minutes, 57 seconds execution period for uh the this order book. So some light on that would be helpful if you could throw some light 27:04 27 minutes, 4 seconds on. So uh again it's quite a sorry Warun if you could go on mute again. Uh as far as the order book is concerned uh Vun 27:12 27 minutes, 12 seconds there are uh you know two or three different kinds of orders that we deal with. A lot of the orders that we get in our UK business especially our public 27:20 27 minutes, 20 seconds sector as well as uh any of the uh public procurement related uh you know frameworks uh that we deal with have a 27:30 27 minutes, 30 seconds much longer tenure. So anywhere between a three year to five year kind of visibility on those orders uh as we ramp up and execute. Then there are orders 27:38 27 minutes, 38 seconds which are more project driven especially in our Salesforce and Oracle business which are usually a year and a year year to year and a half kind of project 27:45 27 minutes, 45 seconds execution. So those are the two different kind of orders that we see in our in our books. Now 27:54 27 minutes, 54 seconds thanks. And uh lastly, what would be the share of the private sector revenue versus the uh uh the government business 28:02 28 minutes, 2 seconds uh the government uh revenue in the UK business and uh do we see any change in that going forward? 28:10 28 minutes, 10 seconds So the private sector business uh approximately is around 28:16 28 minutes, 16 seconds uh 40% uh of our uh you know UK business uh of the global business uh the UK is 28:23 28 minutes, 23 seconds around 30% uh is private sector it's largely 7 circa numbers uh I don't have them exact right now having said that uh 28:32 28 minutes, 32 seconds we have both our healthcare as well as financial services are two sectors where uh we see continued growth growth and uh 28:41 28 minutes, 41 seconds you know in the short term the private sector will uh grow uh faster but overall I think healthcare will pick up as we get uh into the full year view of FI27. 28:53 28 minutes, 53 seconds Sure that's it from my side. Thanks. Thank you. 28:59 28 minutes, 59 seconds Thank you. Next question comes from the line of Nikl Purohit with Fid asset management. Please go ahead. 29:08 29 minutes, 8 seconds Hi, am I audible? 29:10 29 minutes, 10 seconds Yes. Hello. Yeah, thanks for the opportunity. Uh just uh one question uh also on the order book. Uh so uh we have 29:19 29 minutes, 19 seconds witnessed strong growth of course this quarter. Do we expect this order book to get executed in FI27 based on the historical pattern? Uh and like do we 29:27 29 minutes, 27 seconds see uh like accelerating revenue growth for FI27? 29:33 29 minutes, 33 seconds So as you know our uh we've given you a 12-month order backlog number. So we definitely expect the 12-month order backlog to be executed in the next 12 29:41 29 minutes, 41 seconds months uh of our business. Uh which is a stronger foundation as compared to what we entered into the uh into FY26 with so 29:50 29 minutes, 50 seconds we definitely have a stronger foundation as we enter into FY27. Having said that as I also mentioned earlier we are also 29:57 29 minutes, 57 seconds getting into a market which is much more volatile than before. So a lot of macro as well as uh AIEL changes that are 30:05 30 minutes, 5 seconds constantly uh you know shaping the business. So uh our endeavor is to make sure that we deliver uh a positive you 30:14 30 minutes, 14 seconds know book and ship growth also but uh we'll look that with a degree of caution uh as we enter into a market which has a little more uncertaintity than before. 30:23 30 minutes, 23 seconds So put the two together, we believe that FY27 will be a positive growth year uh should grow faster than FI26. 30:33 30 minutes, 33 seconds Got it. Got it. And uh I just noticed in the FI25 full year results uh the receivables went down and it maybe 30:41 30 minutes, 41 seconds restated to contract assets. Why why did this happen? Uh just just understanding like uh so in the previous you mean the previous year. 30:50 30 minutes, 50 seconds Yeah, previous year. Yeah. Yeah. So that was basically a restated balance sheet where we combine the two entities. Um so 30:58 30 minutes, 58 seconds it's not like the business or unbuild has gone down. It's just a combination of two things. Now the uh enterprise 31:05 31 minutes, 5 seconds unique is basically our earth evosis business and MLTD is basically our um uh traditional uh uh digital engineering 31:12 31 minutes, 12 seconds business. So when we combine and and it's and it's a cost plus entity, right? 31:17 31 minutes, 17 seconds MLTD was traditionally a cost plus entity. So, so fundamentally from the business perspective the numbers hasn't come down. It is just a real estate 31:25 31 minutes, 25 seconds number or combined number of two entities. 31:30 31 minutes, 30 seconds Okay. Okay. Okay. And uh just lastly on the similar lines, what is the outlook for uh receivables? They've come down massively in 73 days for the medium terms. 31:41 31 minutes, 41 seconds Uh uh can you please repeat your question? I missed that. 31:44 31 minutes, 44 seconds So receivable days have come down to 73 days right this quarter. what is what is the outlook for the medium-term in that? 31:51 31 minutes, 51 seconds Uh so again I mean it's difficult to kind of provide an outlook because it's a combination of various factors. Um I mean it really depends upon how much 31:59 31 minutes, 59 seconds revenue we booked during the quarter and and how much we have executed out of the backlog as well and how much have we been able to build to the customers. Uh 32:07 32 minutes, 7 seconds and building also depends upon like 40% of our business is fixed price projects. 32:12 32 minutes, 12 seconds So it depends upon in which quarter we are completing the milestone on those projects and then the billing happens. 32:17 32 minutes, 17 seconds So, so of course there will be some variation from where we are today but our endear is to basically maintain uh the DSO at the level we have reached. 32:25 32 minutes, 25 seconds Now in the short term you might see some uh uh plus minus few days but uh in the long term I believe that we should be uh in a stable range of what we have kind of published in Q4. 32:36 32 minutes, 36 seconds Got it. Thank you so much. 32:42 32 minutes, 42 seconds Thank you. Next question comes on the line of Pratam Camaraya with Quantum AMC. Please go ahead. 32:49 32 minutes, 49 seconds Uh yeah. Hi sir. So one thing so uh that uh there is a significant you know growth in order backlog. So what challenges do 32:58 32 minutes, 58 seconds you foresee that you know uh which could not translate into revenue growth for FI27? 33:05 33 minutes, 5 seconds Hi. Uh again, as as we had mentioned earlier, while we see good positive momentum in our 12-month order backlog, which puts us into a much more stronger 33:14 33 minutes, 14 seconds foundation as we step into uh FY27, we're also getting into a year which has uh so that two parts right it is 33:22 33 minutes, 22 seconds execution of the backlog as well as the book and ship that gets executed within the year. uh while we have uh super confident that we will execute the 33:30 33 minutes, 30 seconds backlog uh the 12-month backlog that we have and which is a stronger foundation the book ship in the year uh you know we 33:37 33 minutes, 37 seconds are dealing with you know variety of uncertaintities as well as uh the changing phenomena on uh AI and AI deals uh that we are uh you know experiencing. 33:48 33 minutes, 48 seconds So putting the two together while we feel positive that FY27 will uh improve from FY26 uh we are you know taking with a with a degree of caution. 34:00 34 minutes Okay. Okay. Sure. Sure. Sure. So so one thing like uh since you know uh the start of FYI 24 so there is a dip in active plans and you have mentioned in 34:08 34 minutes, 8 seconds the past that you know you have been doing some uh tail accounts and plan rationalization. So where are we uh on 34:16 34 minutes, 16 seconds that part? Uh secondly, how do you see the employee headcount and util utilization levels uh going forward? 34:25 34 minutes, 25 seconds So as far as the active client is concerned uh no it'll be a constant process we will be churning out uh smaller customers consistently. If you 34:33 34 minutes, 33 seconds look at our current uh book of business, while our top 30 40 customers deliver almost 65 70% of our uh revenue, there's 34:40 34 minutes, 40 seconds a large tail that uh supports uh the remaining uh part of our business. Our 34:47 34 minutes, 47 seconds focus uh and uh you know strategy has been is try to focus on uh strategic customers and be able to deliver more 34:55 34 minutes, 55 seconds value and business to them which would mean that uh some of these smaller customers will turn up. There's also a 35:02 35 minutes, 2 seconds sizable project business that we have where clients uh you know do churn out once the project uh gets executed uh and 35:11 35 minutes, 11 seconds the transformation has been done. So we believe the top 50 or 100 customers is where our focus is and those are stable 35:19 35 minutes, 19 seconds and continuing to grow in terms of their business. But uh there will be uh pluses and minuses that will happen in the 35:26 35 minutes, 26 seconds remaining uh set of customers that we have. 35:30 35 minutes, 30 seconds Uh the second part of the question utilization level. 35:36 35 minutes, 36 seconds Yeah. No, that's a that's a great question. Uh see what what we saw last year was a consistent reduction in uh headcount especially in our fixed bid 35:44 35 minutes, 44 seconds business uh with our ability to do more with uh lesser employees and which has helped us balance uh and sustain our profitability margins uh for the year. 35:55 35 minutes, 55 seconds We continue to see that same phenomena. 35:57 35 minutes, 57 seconds I think our rate of employee growth will be slower than the rate of revenue growth. This is our uh general anticipation. Having said that a lot of 36:05 36 minutes, 5 seconds business mix between on-site offshore uh some of the kind of programs may change that but directionally the uh headcount 36:13 36 minutes, 13 seconds growth should be slower than the uh revenue growth and therefore the revenue per resource should move positively. 36:21 36 minutes, 21 seconds Okay. Sure. Sure. Sure. And you know you know mentioned that you know the sizable uh project business when you know where 36:28 36 minutes, 28 seconds the after project is completed a client turns out. So basically is there any uh capability that you know we are lacking 36:36 36 minutes, 36 seconds and that is why the uh client is you know uh not able to stay with us and he's turning out or is there something uh different? 36:45 36 minutes, 45 seconds So there are two two two scenarios there. There are customers which are large customers where once the project is over they add to our install base and 36:54 36 minutes, 54 seconds we get them into managed services or other capability areas and that's where we've been expanding them. But there were also other set of customers which 37:00 37 minutes were mid to small set of customers uh and where we executed and either they landed into very small managed services 37:08 37 minutes, 8 seconds or into an area that was not our priority focus. So depending upon our focus in terms of vertical and the 37:16 37 minutes, 16 seconds strategic importance of the customer is where we are expanding. There are areas that are not of strategic importance. We want to consistently uh churn them out. 37:26 37 minutes, 26 seconds Okay. Sure. Sure. Sure. Thank you. 37:32 37 minutes, 32 seconds Thank you. Next question comes from the line of Amit Chandra with SCFC securities. Please go ahead. 37:38 37 minutes, 38 seconds Yeah. Thanks for the opportunity. So my question is on the you know AI order book that we have given. So it has increased from say 3% to 9% of the order 37:48 37 minutes, 48 seconds book in the last two quarters. But if I see the average size of the deal is still very small around a million dollar. Uh so how do you steer the 37:57 37 minutes, 57 seconds scalability in these AI deals and also you know these kind of wins are coming from existing clients in the existing uh 38:04 38 minutes, 4 seconds you know uh strength pool or this is like net new from the existing clients. So if you can give some color on that. 38:12 38 minutes, 12 seconds So Amit like I've said the aid deals uh are currently you know uh building up 38:19 38 minutes, 19 seconds and uh in some cases these are uh larger engagements in terms of uh where it is AI for techled transformations uh and 38:28 38 minutes, 28 seconds not very large but moderately large and then there are other customers where these are still small use case deployments but the value and the impact 38:37 38 minutes, 37 seconds of those use cases uh are very phenomenal. So the way we are looking at it is as we move from AI for tech to AI for business it will be about deploying 38:46 38 minutes, 46 seconds some outcome based significant use cases to our clients in some cases we are also doing discovery work which is setting 38:53 38 minutes, 53 seconds the step you know foundation for much longer enterprise AI business uh as we go forward. So while uh that's the 39:00 39 minutes current rate I think it'll consistently improve as in the long term as these uh use cases become more enterprise scale and enterprisewide. 39:12 39 minutes, 12 seconds And because we have seen weakness in the audio is not very clear. Can you repeat that? 39:22 39 minutes, 22 seconds Uh is it is it clear now? Yeah, it's much better. 39:26 39 minutes, 26 seconds Yeah. Yeah. So I was saying that uh obviously you know the US geography and the has been uh you know the 39:33 39 minutes, 33 seconds underperformance for FI26. So how do you see these two geographies shaping up in terms of the revenue growth uh you know 39:41 39 minutes, 41 seconds for the like next year and also you know uh there has been sharp know impact on the margins as well. This is because of 39:49 39 minutes, 49 seconds the you know strategies we have in terms of cutting the tail and we are still investing in these two geographies. So 39:56 39 minutes, 56 seconds uh you know for the for the like next year how do you see that the UK geography continues to grow and we can 40:03 40 minutes, 3 seconds see some stabilization in the US and the Middle East or is it going to be uh still some pressure on the like US and the Middle East geography. 40:12 40 minutes, 12 seconds So uh Amit uh like we've been stating this we this year was a very fundamental reset in our North America business 40:20 40 minutes, 20 seconds right from our leadership to our teams as well as our focus in terms of uh target markets and GTS and everything 40:27 40 minutes, 27 seconds else. Uh most of that has been uh now stabilized and in place. We're starting to see positive lead indicators. uh the 40:36 40 minutes, 36 seconds current quarter was the second quarter of positive order book growth uh sequentially uh you know we saw Q3 also 40:44 40 minutes, 44 seconds sequentially grow we've seen Q4 also sequentially grow and we have enough uh lead indicators to say it'll continue to sequentially grow uh in the coming uh 40:53 40 minutes, 53 seconds you know next few quarters as we sequentially grow in our order book the other important factor to know is our North America business was a lot more 41:01 41 minutes, 1 second project based so while our order book and ramp up is growing There's also some of the uh older projects that get 41:09 41 minutes, 9 seconds executed and therefore their ramps come down. So on one hand we are trying to improve the order book. The other hand is we systematically trying to change 41:17 41 minutes, 17 seconds the color of our business to have more long-term and uh stable uh revenue projects. We believe as we go forward uh 41:25 41 minutes, 25 seconds with the lead indicators moving in the right direction, our North America business will start to show positive 41:32 41 minutes, 32 seconds growth uh you know as we move forward and we are uh we are quite positive that FY27 will be a good growth year for 41:41 41 minutes, 41 seconds North America. As far as uh our Amya business uh is concerned uh like we had said earlier we have reset our focus and 41:49 41 minutes, 49 seconds attention on that geography. Again that research has been well executed. Now healthcare and BFSI and manufacturing are three key verticals especially 41:57 41 minutes, 57 seconds healthcare. A lot of focus from just doing back office work to doing uh you 42:04 42 minutes, 4 seconds know uh pure play bedside and clinical and patient engagement activities is how we have changed that business. So lot 42:11 42 minutes, 11 seconds more larger and strategic engagements with our healthcare customers especially on the back of Oracle health is how it is developing. 42:20 42 minutes, 20 seconds Uh the geopolitical uncertaintities is definitely a factor but if you take uh if you eliminate uh you know those 42:28 42 minutes, 28 seconds uncertaintities out or if you make an assumption without the uncertainties we are positive that AMI is also turning around towards uh you know growth uh in FY27. 42:40 42 minutes, 40 seconds Okay. and on the UK government business obviously we have been you know doing well there and you know winning deals 42:47 42 minutes, 47 seconds from like know from from the new departments but from the existing ones or the older uh you know like customers that we have what kind of know like 42:56 42 minutes, 56 seconds renewal discounts that uh know we are seeing and also in terms of the pricing crashes that we're seeing in terms of existing uh know existing contracts 43:04 43 minutes, 4 seconds which are know coming up for renewals and also in general the increase in the know competitive environment wherein I 43:10 43 minutes, 10 seconds So many new players have entered uh the geography because it's a last pan pool. 43:17 43 minutes, 17 seconds So the and this is not just for UK this is across the board. Uh Amit the renewals clearly are uh you know being extremely uh price competitive. 43:29 43 minutes, 29 seconds uh a lot of that is very evidently available with the ability of AI to deliver things faster better and uh 43:36 43 minutes, 36 seconds therefore uh the ability to do the same business in lesser effort is very visible and uh hence the price competitiveness of these renewals like 43:45 43 minutes, 45 seconds we mentioned in our earlier quarters we had renewed some of our contracts with anywhere around uh 10 to 15% discount 43:53 43 minutes, 53 seconds but depending on the nature of business and the nature of customers this could go uh much higher than that uh as we go into these discussions. Like I said, it 44:01 44 minutes, 1 second while it creates a cost pressure in terms of uh or revenue pressure in terms of executing the current uh business, 44:08 44 minutes, 8 seconds but it is equally creating many more opportunities of winning uh net new customers uh net new strategic customers 44:16 44 minutes, 16 seconds uh because they also see us as equally capable and confident partner to delivering uh those businesses. So, it's 44:23 44 minutes, 23 seconds a mix of the two. Uh these price pressures will continue. uh our endeavor is to now shift our business model from 44:32 44 minutes, 32 seconds TNM to much more fixed bid outcome based contracts. In fact uh underneath the TNM commercial framework, we were delivering 44:40 44 minutes, 40 seconds lot of outcome based programs for our clients. So we're now trying to bring that into the commercial frameworks also. 44:49 44 minutes, 49 seconds Okay. Okay. Thank you and all the best. Thank you. 44:56 44 minutes, 56 seconds Thank you. Next question comes on the line of Prolin Nandu with Eagle Wise public alternate. Please go ahead. 45:04 45 minutes, 4 seconds Uh yeah hi Omang. Uh a couple of questions from my end. Uh one is on the M&A right. Uh just wanted to understand 45:12 45 minutes, 12 seconds uh in the evolving uh nature of how IT services is evolving. Uh how has your philosophy on M&A changed? Right. So 45:21 45 minutes, 21 seconds what are some of the skill sets that uh or uh you know uh some of the gaps that you see in your business that you want 45:29 45 minutes, 29 seconds to fill uh through an inorganic growth opportunity. Can you just give us your view on M&A? 45:36 45 minutes, 36 seconds Yeah, hi Paul. I think it's a it's a very good and strategy question to ask. 45:41 45 minutes, 41 seconds See the general uh view that we had earlier and which is some of the earlier M&As that we did were more based on 45:48 45 minutes, 48 seconds capabilities and skills around Oracle, around Salesforce, around data and so on and so forth. Our view uh and our vision 45:55 45 minutes, 55 seconds for our business is business is going to be much more domain and vertical specific and therefore our ability to understand the business and deliver 46:03 46 minutes, 3 seconds business outcomes is how uh services will be offered going forward. Masttec is also making an important shift 46:10 46 minutes, 10 seconds towards verticalization as well as using AI for delivering these vertical solutions. In that context, our M&A 46:17 46 minutes, 17 seconds thesis is now looking at uh assets that could give us core domain capabilities. 46:23 46 minutes, 23 seconds So uh while continuing technology but looking at technology which are more core to the business rather than some of the periphery or digital activities that 46:31 46 minutes, 31 seconds we had looked at earlier. So that's one part like I'd also mentioned earlier. uh while there is significant in-house uh 46:39 46 minutes, 39 seconds M&A developments, a lot of positive M&A developments are also happening with startups all around. So we continue to 46:46 46 minutes, 46 seconds also look at uh using that ecosystem both via partnership and some degree of investment if required. 46:55 46 minutes, 55 seconds Okay. So what I take is that domain knowledge is important uh and that's the uh uh thing that you're looking at. uh among second question would be I'm 47:03 47 minutes, 3 seconds trying to triangulate a few things here where first you mentioned that things are moving towards you know uh outcome based uh solutions rather than time and 47:12 47 minutes, 12 seconds uh wage uh thing uh one is that secondly you are also saying that even in this evolving AI world there will be a need 47:20 47 minutes, 20 seconds for lot of technologies uh lot of IT service and thirdly you mentioned that still most of the AI is more AI to drive tech rather than AI to drive business. 47:31 47 minutes, 31 seconds So in such a environment right don't you think that as we move towards more outcome based and we move towards AI 47:40 47 minutes, 40 seconds based uh AI in the business based uh kind of deals don't you think the need for service will ultimately come down 47:48 47 minutes, 48 seconds how do you you know see uh you know are these three event can these three things happen simultaneously together or one has to fall off so uh The way I see this pollen is this. 48:02 48 minutes, 2 seconds While technology, ability to deliver technology has definitely evolved significantly. But what has also evolved significantly is the potential of things 48:11 48 minutes, 11 seconds that you could do which you were not able to do earlier. And this is in many contexts, right? And this is not just in terms of writing code, but in terms of 48:19 48 minutes, 19 seconds variety of analysis, variety of uh you know research that you could generate, the workflows that you could operate in, the UI that you could have and so on and 48:27 48 minutes, 27 seconds so forth. What it means is lot of businesses in fact uh large majority of businesses will have to reook at their 48:35 48 minutes, 35 seconds business processes, their business workflows, uh the way they make decisions. There will be newer revenue opportunities that they will create and 48:42 48 minutes, 42 seconds so on and so forth 48:52 48 minutes, 52 seconds AI has provided as we look at uh delivering these or as clients look at adopting these new possibilities while 49:00 49 minutes the technical capability of creating an agent or you know generating a code faster is very much available and that 49:07 49 minutes, 7 seconds is uh that can be delivered The ability to deliver an outcome is not just about writing the agent. It is lot 49:14 49 minutes, 14 seconds more about whether the background data is in place, whether the workflows are correct, whether there is adoption uh of 49:22 49 minutes, 22 seconds the uh you know technology that they've taken out and how are they really measuring the impact. If you look at the AI adoption so far, while people have 49:30 49 minutes, 30 seconds bought a lot of you know platform licenses, the ROI is is still not visible to many of the nonIT clients. 49:37 49 minutes, 37 seconds and that ROI realization will take uh significance around services uh to get the clients to business outcome. So 49:45 49 minutes, 45 seconds that's how we see this business. So services will continue the kind of services will change from developing to 49:52 49 minutes, 52 seconds much more uh helping the clients with reooking at their workflows, adoption of technology and delivering outcomes. 50:00 50 minutes Sure. Oman can I push one more question because this is just related. Uh so so what you're talking about is a net positive uh right of AI because of you 50:09 50 minutes, 9 seconds know workflow modernization or data modernization. 50:12 50 minutes, 12 seconds when and where do we see uh this playing out for Mastte I'm talking about the order right or 50:21 50 minutes, 21 seconds maybe the revenue and you know when right I mean that's also a question right because when is 50:28 50 minutes, 28 seconds a great question uh sure yeah no when is a great question and we are all trying to there's uh no 50:36 50 minutes, 36 seconds clear directional number but what I can tell you is good lead indicator data so clients have started realizing that just buying platform is not good enough. 50:46 50 minutes, 46 seconds They've started uh working and we have seen quite a few orders including a few in this quarter itself where uh our job is to work with the client on readiness. 50:55 50 minutes, 55 seconds Uh we're getting orders with the client to deliver uh business process change. 50:59 50 minutes, 59 seconds Uh we're getting orders with our clients to deliver uh you know uh an ROI adoption framework. Governance is 51:08 51 minutes, 8 seconds becoming a critical part of the discussion that is happening. So the lead indicators of surround services around AI for getting the true value out 51:16 51 minutes, 16 seconds of AI we're starting to see those happen. Uh having said that many of them are still in smaller you know uh either 51:24 51 minutes, 24 seconds discovery stages or smaller use cases as I mentioned earlier when it becomes enterprise scale and it will become enterprise scale because it is not just 51:32 51 minutes, 32 seconds about one or two workflows it has to change the entire landscape of business. 51:37 51 minutes, 37 seconds uh that's where uh you know sizable revenue and business impact will happen which will clearly you know overthrow 51:44 51 minutes, 44 seconds whatever we have been doing so far and significantly increase that but uh when like I said I can only tell you lead indicators uh exact timing is unknown. 51:56 51 minutes, 56 seconds Thank you so much Oman for all answering the question all the very best. Thank you. 52:02 52 minutes, 2 seconds Thank you. Next question comes from the line of Sanjay an individual investor. Please go ahead. 52:12 52 minutes, 12 seconds Hello Mr. Sanjay. Please go ahead. 52:15 52 minutes, 15 seconds Uh yeah uh thank you for the actually my question is answered. So thanks for that and wishing you all the best. Thank you Sanjay. Thank you Sanj. 52:25 52 minutes, 25 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes on the line of Shushan with Anandra. Please go ahead. 52:35 52 minutes, 35 seconds Yeah, thanks for giving the opportunity again just uh two questions. One is how much would be your projectdriven business as a percentage of revenues uh 52:44 52 minutes, 44 seconds overall and within the US that would be quantified. Uh that that's one and the second bit is with whatever has happened 52:52 52 minutes, 52 seconds with the Oracle layoffs and the fact that there are rumors Oracle may actually plan to sell its Oracle health business, the Cerno business. uh do you 53:00 53 minutes think that may have any impact on uh your business from the Oracle implementation perspective because we're also seeing that degrow year on year. Uh these are the two questions. 53:11 53 minutes, 11 seconds So so shan uh the fixed bid business that we have currently is at a company level circa 40% uh some plus minus it is 53:20 53 minutes, 20 seconds a little higher uh in North America it's uh more than north of 50% 55% is fixed bid business in North America. uh you 53:29 53 minutes, 29 seconds know in our current uh setup. So that's our two areas. Uh and we actually as believe that this percentages will grow 53:37 53 minutes, 37 seconds even further and that's the commercial model that uh you know that that's that's how it'll move to. Having said that uh going back to the other Oracle 53:46 53 minutes, 46 seconds part of the question that you have see the code tech area which is you know writing codes or testing or managed 53:56 53 minutes, 56 seconds services etc definitely has become far far more advanced than it ever was and therefore if you look at any product 54:04 54 minutes, 4 seconds development or you know areas that were highly de dependent on pure play uh technical engineering skills and 54:12 54 minutes, 12 seconds especially these companies which are uh themselves on the uh you know edge of technology uh they will be looking at 54:20 54 minutes, 20 seconds you know uh reduction in human effort in terms of those core services that they had on the other hand their investment in their business so if you look at 54:28 54 minutes, 28 seconds their uh you know platform modernization the degree of AI workflows that they started introducing the investment that 54:35 54 minutes, 35 seconds they have on their infrastructure and uh capital allocation for AI and getting their businesses completely transformed 54:42 54 minutes, 42 seconds to AI is significant. It is far outrunning the kind of reduction that they would have in these uh employee related cost savings. So if you put the 54:51 54 minutes, 51 seconds two together, the business is seeing a systematic shift from traditional uh SAS 54:59 54 minutes, 59 seconds deployments to more AI enabled business transformation and we will consistently see that. So 55:07 55 minutes, 7 seconds SAS will become to the cloud or SAS transformation will eventually grow into AI transformations and uh there could be 55:16 55 minutes, 16 seconds some timing gap in terms of uh you know business there but in general the transformation business will continue to 55:24 55 minutes, 24 seconds do well something would you be able to capture 55:31 55 minutes, 31 seconds value in this is is what I just trying to understand and I just add One more question. 55:39 55 minutes, 39 seconds Sorry, what do you mean by capture value in this? I didn't understand. 55:42 55 minutes, 42 seconds So, so given the uh transition from the SAS based business to the AI enabled bit. So, if it is automated to a larger extent, what is it that you would be 55:50 55 minutes, 50 seconds able to capture value within the Oracle implementation? So, what's Yeah. 55:56 55 minutes, 56 seconds No. So, these are already starting to happen. uh most of our Oracle transformation projects have now starting to become AI transformation 56:03 56 minutes, 3 seconds projects because it started with back office transformation but people are using a lot of AI enabled solutioning to 56:10 56 minutes, 10 seconds reook at their workflows. So the traditional workflows are changing. They they are reooking at their UIs. They're in fact also reooking at their existing 56:18 56 minutes, 18 seconds workforce uh to say okay how will their workforce deployment change in terms of their back office systems. These 56:25 56 minutes, 25 seconds projects are become becoming the bedrock for further you know AIEL transformations in their front office or 56:33 56 minutes, 33 seconds in their mid office or even helping them open and operate new streams. So being a part of this back office transformation 56:41 56 minutes, 41 seconds puts us in a very unique position to be early in the client delivering AI adoption uh in some of their back office 56:47 56 minutes, 47 seconds areas and therefore the ability to uh propose and build this transformation in uh the front office and other parts of their business. 56:58 56 minutes, 58 seconds Thanks a lot. And just one last question is when do we expect these ramp ups of the three deals that you've announced in 57:03 57 minutes, 3 seconds March? Uh the Atlas FA and the biometric uh when 57:10 57 minutes, 10 seconds so the FCA deal has already start already started ramping up. We've now had more than 60 on-site resources on 57:18 57 minutes, 18 seconds the account and we'll continue to see ramp up uh in Q1 uh on that deal. So we think we'll be fully ramped up by the 57:27 57 minutes, 27 seconds end of Q1 on FCA. As far as the other two deals are concerned, uh we are negotiating the new SE. These are 57:34 57 minutes, 34 seconds existing renewals but with an expanded scope. So we are as we speak uh under the contract uh discussing with the 57:42 57 minutes, 42 seconds clients uh the uh the new S uh for which the rampos will have to happen. So we expect uh those to happen sometime between Q1 and Q2. 57:54 57 minutes, 54 seconds Thank you very much. 57:59 57 minutes, 59 seconds Thank you ladies and gentlemen. As there are no further questions, we have reached the end of question of the session. I would now like to hand the conference over to the management for closing comments. 58:10 58 minutes, 10 seconds Uh thank you uh thank you for all the question answers. Uh like I said earlier uh FY26 was important but very 58:18 58 minutes, 18 seconds fundamental year to Mastic. uh well we've seen lot of you know resets in terms of our approach our teams uh our 58:26 58 minutes, 26 seconds you know order book and backlogs that we are uh you know carrying now as well as the kind of services and focus that we will have FY27 is going to be much more 58:35 58 minutes, 35 seconds about focus uh trying to drive the business towards some key verticals and key accounts while continuing to deliver 58:42 58 minutes, 42 seconds uh stable aida margin uh in the business. So that's what we're all looking forward to. uh we believe we 58:50 58 minutes, 50 seconds have a strong stable team now in place and uh uh it should drive a good positive momentum as we go forward. 58:57 58 minutes, 57 seconds Thank you. Thank you. Thank you. 59:01 59 minutes, 1 second On behalf of Masterc Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.