NIIT Ltd — Q4 FY26

NIIT Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=CdXlJU6HhjA Published: 1 hour ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to NIT Limited Q4 FY26 earnings conference call. As a reminder, all 0:11 11 seconds participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the 0:20 20 seconds conference call, please signal an operator by pressing start then zero on Touchstone phone. Please note that this conference is being recorded. I now hand 0:29 29 seconds the conference over to Mr. Vijay Tarani, vice chairman and managing director. Thank you and over to you sir. 0:38 38 seconds Uh thank you and uh welcome everyone for uh joining us this afternoon in a busy 0:44 44 seconds earning season. Uh truly appreciate your uh uh your joining us this afternoon. So 0:52 52 seconds uh first of all I thank you for your interest in NIT limited and uh today's agenda is uh quarter 4 and uh financial 1:02 1 minute, 2 seconds year uh 2526 uh performance highlights. Uh I think it's important for us to talk a little 1:10 1 minute, 10 seconds bit about what shaped this year and what are we doing as we enter uh FI27. 1:16 1 minute, 16 seconds Uh these are exciting times to say the least. uh excite exciting in some sense and with lot of uncertainty 1:25 1 minute, 25 seconds uh and also want to discuss in that context our priorities and outlook. So 1:32 1 minute, 32 seconds just to set the context, we entered this year with a very deliberate choice to 1:38 1 minute, 38 seconds invest ahead of curve in the artificial intelligence AI space and building in 1:45 1 minute, 45 seconds number one. Number two, building go to market capacity. Number three focusing on work segment. We could see that the 1:53 1 minute, 53 seconds fresh hire pressure uh was there over the years and we we could see that it will become worse this year. So we tried 2:01 2 minutes, 1 second to become fresh hire agnostic if I may use the word and therefore found other avenues and work pro segment and uh it 2:10 2 minutes, 10 seconds also therefore meant it was a year of compressed margins as it is as we have said we are in an investment cycle. 2:20 2 minutes, 20 seconds Looking back it seems that was the right call because uh in the first quarter it did appear so in the first quarter we we 2:28 2 minutes, 28 seconds had uh a rough time but I think we ploted our way back quarter two was good quarter three a bit muted but quarter 2:36 2 minutes, 36 seconds four we again had a very strong quarter in terms of growth so revenue approached or exceeded 1 billion rupees or 100 2:45 2 minutes, 45 seconds crores in three out of four quarters uh in 104 crores in quarter 2, 101 in 2:53 2 minutes, 53 seconds quarter 3 and nearly 100 crores in quarter 4 99.7 a fullear revenue of 390.2 3:01 3 minutes, 1 second crores grew 9%. Uh let me stay with million if that's okay with you all. 3:07 3 minutes, 7 seconds It's uh 3,92 million rupees which grew 9%. which look very difficult in quarter 3:15 3 minutes, 15 seconds three but I think we had to work very hard on building a strong pipeline and I think better than the revenue growth is 3:22 3 minutes, 22 seconds visible we can see a stock strong order intake which has happened during the year which is ahead of uh the revenue 3:30 3 minutes, 30 seconds which tells us that we are in good state as we start the next year uh on guidance delivery for the full year in January 3:38 3 minutes, 38 seconds this year we had talked guided to a 7 to 8% revenue venue growth with break even to low single digit negative AITA I 3:46 3 minutes, 46 seconds think we have delivered 9% revenue growth ahead of guidance and EIA of negative 40 odd million or approximately 3:55 3 minutes, 55 seconds minus 1% which is uh I could argue is within the guided range our order intake 4:01 4 minutes, 1 second grew 17% to 4.2 2 billion rupees or 4,200 million rupees which is above our 4:08 4 minutes, 8 seconds fullear revenue as we mentioned before the go to market engine and air momentum we built this year is what will drive us as we target FI27. 4:20 4 minutes, 20 seconds I could talk to you more about many of these parameters but I would now hand you over to Pankas uh our CEO to take 4:29 4 minutes, 29 seconds you through quarter 4 and FYI 26 performance in detail. Thank you. 4:36 4 minutes, 36 seconds Thank you and good afternoon everyone. 4:39 4 minutes, 39 seconds I'll cover the Q4 performance first uh which will be revenue order intake and some business trends and then step back 4:46 4 minutes, 46 seconds to the fullear picture and our priorities going into FI27 for Q4 FI26 let's look at the revenue 4:55 4 minutes, 55 seconds and order intake revenue for Q4 was 997 million which is up 16% yearon year uh 5:03 5 minutes, 3 seconds excluding our acquisition I'm new the organic revenue for Q4 was 875 million which is a marginal increase 5:10 5 minutes, 10 seconds year-on-year reflecting gradual recovery in the core business. Order intake was 869 million up 18% yearon year and 6% 5:20 5 minutes, 20 seconds quarteron quarter. This is encouraging momentum heading into FI27. 5:25 5 minutes, 25 seconds In terms of our go-to market mix, enterprise revenue was at 630 million rupees, up 13% yearonear and the 5:33 5 minutes, 33 seconds consumer revenue was 367 million up 21% year on year. The enterprises to consumer uh revenue mix was uh came in 5:43 5 minutes, 43 seconds at 63 is to 37 uh versus 65 is to 35 last year. Consumer went up a little bit 5:50 5 minutes, 50 seconds in the mix. Uh in terms of product mix, revenue from technology programs was at 5:56 5 minutes, 56 seconds 699 million which is up 22% yearonear and revenue from BFSI and other programs 6:03 6 minutes, 3 seconds was at 298 million which is up 4% yearon year. The technology is to BFSI ratio uh 6:10 6 minutes, 10 seconds comes in at 70 is to 30 versus 67 is to 33 last year. Now let's look at what drove this quarter. Our enterprise go to 6:20 6 minutes, 20 seconds market continued to hold up supported by working professional programs and lateral upskilling in tech despite a 6:27 6 minutes, 27 seconds continuing slowdown in consumption by large private sector banks. The enterprise good market grew 13% yearon 6:34 6 minutes, 34 seconds year in Q4. Uh let's add some color to that. Enterprise tech grew 20% yearonear 6:41 6 minutes, 41 seconds to rupees 489 million excluding and you know organic enterprise tech grew 9% yearon year reflecting an underlying 6:48 6 minutes, 48 seconds improvement in the core business. Our strategy is to increase penetration across lateral job roles through upskilling and reskilling. This has 6:57 6 minutes, 57 seconds created a healthier balance between early careers and grocery professionals in enterprise tech. This has also made enterprise tech structurally more 7:05 7 minutes, 5 seconds resilient even as fresher hiring and onboarding remained volatile through the year. Our consumer go to market also saw 7:12 7 minutes, 12 seconds strong growth. Consumer GPM grew 21% yearon year in Q4 to rupees 367 billion. 7:18 7 minutes, 18 seconds This was driven by consumer track uh which grew 28% yearon year uh to 210 billion reflecting continued demand for 7:27 7 minutes, 27 seconds tech skilling from job seekers and working professionals. Our direct to college strategy is creating a pipeline 7:33 7 minutes, 33 seconds of job ready talent which university clients are intrinsingly valued. 7:39 7 minutes, 39 seconds Do note that Q4 is a seasonally strong quarter for IMO while Q1 is the weakest. 7:46 7 minutes, 46 seconds Q4 saw early signs of onboarding demand returning in banking with hiring activity picking up at partner banks. 7:53 7 minutes, 53 seconds The pickup and hiring activity seems to have continued into Q1 supporting our onboarding pipeline. In terms of product mix, technology now represents 70% of revenue with BFI and others at 30%. 8:06 8 minutes, 6 seconds 67 is to 33 last year. Technology programs continue to perform well despite compressed hiring driven by GTM expansion. The pivot to working 8:14 8 minutes, 14 seconds professionals and AMU's contribution both have helped the same. The pressure remains concentrated on the enterprise 8:22 8 minutes, 22 seconds BFSI and others space where learning spend for upskilling at large private banks remains under pressure. I now 8:29 8 minutes, 29 seconds invite Sanjep the chief financial officer for NIT Limited to provide an update on the financials. Over to you 8:36 8 minutes, 36 seconds Sanjiv. Thanks Pankash. Good afternoon everyone. Uh so I'll take you through some financial numbers. Aida for Q4 was 8:45 8 minutes, 45 seconds near week one this quarter which is coming to at0.2 2 million. Uh this reflects continued investment in the 8:52 8 minutes, 52 seconds business including GTM capacity and new AI offering. uh below AIDA there was a depreciation of 74 million in Q4 other 9:01 9 minutes, 1 second income was 58 million comprising primarily treasury income of 37 million and other recovery 9:08 9 minutes, 8 seconds income this quart last last year Q4 market impact volatility interest rate 9:16 9 minutes, 16 seconds during the quarter on exceptional expense was rupes 10 million in Q4 primarily legal and professional 9:24 9 minutes, 24 seconds expenses This resulted in a pat loss of 44 million for the farm. Now coming to balance sheet and cash flows. Cash and 9:32 9 minutes, 32 seconds cash equivalent remain strong at 7102 million underpinning our ability to invest through the cycle. Capital 84 9:41 9 minutes, 41 seconds million for the quarter. We are past the peak on capital investment in platform in the current investment cycle and we expect capital expenditure to rotate 9:49 9 minutes, 49 seconds from here. BS was at 53 days in Q4 FY26 versus 51 days in Q4 of last year. It's 9:57 9 minutes, 57 seconds marginally higher due to change in mix headcount standards 9 931 including IM new which is up 209 from 10:06 10 minutes, 6 seconds 722 last year in Ego and down 88 10:14 10 minutes, 14 seconds at organic level head by back to Page. Thank you Sanjep. Uh now 10:21 10 minutes, 21 seconds let's look at the full year performance for the full year. FI26 order intake was at rupees 4,29 million. That's up 17% year on year. 10:32 10 minutes, 32 seconds This is our strongest order intake growth in recent years and it exceeded full year revenue giving us a positive book to bill as we enter FI27. 10:42 10 minutes, 42 seconds Revenue was at 3,92 million which is up 9% yearon year. This is ahead of our 7 to8 percent guidance that we gave in 10:50 10 minutes, 50 seconds January. IMU contributed rupees 413 million in revenue in its first full year as part of NIT ahead of our 10:58 10 minutes, 58 seconds expectations and validating the strategic rational for the acquisition. Let's look at Eida for the full year. 11:04 11 minutes, 4 seconds Aida was for FI26 was negative 40 million a negative margin of approximately 1% which is within our 11:11 11 minutes, 11 seconds guided range. This reflects deliberate investments you made in GPM, marketing and people capacity to build the growth 11:18 11 minutes, 18 seconds engine for FI27 and further annual contributed rupees 110 million of AIDS partially cushioning these investments. 11:27 11 minutes, 27 seconds Net other income was rupes 452 million versus 77 million last year. Treasury income for the full year at 399 million 11:36 11 minutes, 36 seconds down yearon year due to marktomarket impact of interest rate movements even as the cash balance remained robust. 11:43 11 minutes, 43 seconds Other miscellaneous income of 177 million versus 158 million. 11:49 11 minutes, 49 seconds This included finance cost of rupes 30 million forex loss of 2 million for the full year exceptional and nonopressional 11:56 11 minutes, 56 seconds items were 110 million. The fullear PAT was profitable at rupees 53 million resulting in EPS of 0.39 per share. The 12:06 12 minutes, 6 seconds business remained profitable at the pat level through the investment cycle. 12:10 12 minutes, 10 seconds What we built in FI26 and why it matters for FI27. 12:16 12 minutes, 16 seconds We built GPM capacity. We added sales leaders across NIT along with enterprise sales managers expanding coverage across 12:23 12 minutes, 23 seconds GCC's, banks, NBFCs, Indian enterprises and through IMEO into universities and colleges. We are seeing early results. 12:32 12 minutes, 32 seconds We added seven new enterprise logos in Q4 bringing the full year total to 64 new enterprise logos along with 20 new 12:39 12 minutes, 39 seconds universities and colleges. Brand visibility investments and influencerled campaigns have contributed to this expansion across technology companies, 12:48 12 minutes, 48 seconds financial service firms, Indian enterprises and higher education institutes. 12:53 12 minutes, 53 seconds Our YouTube channel crossed a million subscribers earlier this quarter. 12:57 12 minutes, 57 seconds Currently we stand at 1.3 million with strong growth in views and traffic building our brand reach with learners and enterprises. 13:07 13 minutes, 7 seconds In terms of platform and product, we revamped the learning platform uh which is now fully AI enabled. We 13:15 13 minutes, 15 seconds launched deep skilling programs in our new age technology and integrated AI to enhance learner outcomes and internal 13:22 13 minutes, 22 seconds productivity. Critically, we pivoted focus towards advanced programs for working professionals as the demand has shifted towards working professionals 13:30 13 minutes, 30 seconds giving significant role transitions driven by AI. 13:35 13 minutes, 35 seconds In terms of solutions and differentiation, we added generative and agentic AI programs, AI and digital coaching solutions for banks and 13:43 13 minutes, 43 seconds enterprises and sector specific solutions. 13:47 13 minutes, 47 seconds Through the year, we were also certified as a great place to work through GPTW and we launched the first India skills 13:55 13 minutes, 55 seconds gap report 2026, the first of its kind in the country. 13:59 13 minutes, 59 seconds Let me take a minute talk about I am launched agent Smith a unified AI assistant that consolidates intelligence 14:07 14 minutes, 7 seconds across coding practice placement automation and hiring workflows within its edex and hiring platform. 14:16 14 minutes, 16 seconds In terms of simplification and agility, we announced a merger of two wholly owned subsidiaries RPS Consulting and IFBI with NIT Limited to simplify the 14:25 14 minutes, 25 seconds structure, reduce costs and improve agility. The teams are unified and the reorganization is expected to increase our agility and improve offerings for 14:33 14 minutes, 33 seconds customers by yielding meaningful cost savings. 14:38 14 minutes, 38 seconds Additional expenses related to this reorganization. 14:43 14 minutes, 43 seconds Let me talk a little bit about AI. AI represents one of the most significant demand opportunities in it is happening 14:50 14 minutes, 50 seconds now, not in the future. AI is embedded in a larger part of our portfolio. 14:55 14 minutes, 55 seconds Revenue from AI programs have now grown to 8% of our total revenue in Q4. Our AI story is becoming sharply defined and 15:04 15 minutes, 4 seconds nowhere is this clearer than in GSIS and GPS. 15:09 15 minutes, 9 seconds AI augmented engineering teams are already running 40 to 70% smaller than their conventional equivalents. One 15:16 15 minutes, 16 seconds engagement that we are aware of compressed a planned 150 person team to 42 across every gsi models suggest more 15:24 15 minutes, 24 seconds than half of current past content roles face displacement over the next 36 months in waves that have already 15:31 15 minutes, 31 seconds started. GSIS and GCCs are positioning themselves as the change agents for their clients AI transformation. The 15:39 15 minutes, 39 seconds transformation they're driving for their clients will need to be mirrored in their own organizations. A number of current roles are becoming redundant and 15:47 15 minutes, 47 seconds need to transition into new AI era roles. This creates a three-part talent opportunity. 15:54 15 minutes, 54 seconds Reskilling existing employees whose roles are evolving. Retooling staff displaced by productivity gains into the 16:01 16 minutes, 1 second new AI era roles. And finally, onboarding new early career talent such as forward deployed engineers, 16:09 16 minutes, 9 seconds architects, and others into roles that require accelerated outcomebased programs rather than just traditional induction. 16:18 16 minutes, 18 seconds We observe that inhouse LED teams are likely to need a lot of support to scale and stay on pace with this kind of 16:25 16 minutes, 25 seconds transformation and the existing response internal AI academy built around post completion and certifications are 16:33 16 minutes, 33 seconds structurally inadequate. Training is moving from skilling to capability orchestration. Completion rates do not 16:40 16 minutes, 40 seconds prove judgment under uncertainity, AI output verification or agentic workflow design. That is precisely the opportunity for NIT. Stack routt now 16:49 16 minutes, 49 seconds integrated with RPS addresses the reskilling and retooling agenda. Deep transformative programs for existing clients. IM new with its university 16:58 16 minutes, 58 seconds partnerships and the college to corporate bridge addresses the onboarding capacity enabling early career talent to take on roles that previously required years of experience. 17:09 17 minutes, 9 seconds Our synthetic work platform and the architect on graduation product are purpose-built for this transition. The 17:15 17 minutes, 15 seconds same dynamic is playing out across BFSI and Indian enterprises as well. We are well positioned to serve it through our AI fluency programs. 17:25 17 minutes, 25 seconds I'll come briefly to the guidance for Q1 FI27. 17:29 17 minutes, 29 seconds We expect doubledigit revenue growth year on year in Q1 FI27. 17:35 17 minutes, 35 seconds On margins, we expect break evens to go single-digit negative Aida margin in Q1 driven by continued investments in GTM 17:43 17 minutes, 43 seconds capacity and creating new offerings. For overall FI27, we expect stronger revenue 17:49 17 minutes, 49 seconds growth, improving margin and continued order intake momentum for FI77 as compared to 26. and medium to long-term 17:58 17 minutes, 58 seconds the structural opportunity in skilling remains substantial and we are fully committed to our strategic objectives 18:05 18 minutes, 5 seconds with that Vijay I am back please uh 18:16 18 minutes, 16 seconds I think we'll open this uh for questions if there are uh 18:24 18 minutes, 24 seconds any while we are waiting for questions I think uh uh while Spankage already spoke 18:31 18 minutes, 31 seconds about it. Uh just wanted to give an update on the inorganic actions. Uh we had mentioned in Q Q1 FI26 and this is 18:40 18 minutes, 40 seconds for the year we completed the acquisition of IME Neo a young fast growing profitable AIEL deep skilling 18:48 18 minutes, 48 seconds SAS platform. Uh integration is on track. the business has scaled well and in fact they are ahead of the numbers 18:56 18 minutes, 56 seconds that they had originally thought of. Uh we continue to evaluate other such 19:03 19 minutes, 3 seconds opportunities and uh uh we'll update as and when uh there are some positive movements. Uh we approved the 19:12 19 minutes, 12 seconds simplification of the entity structure through the merger of RPS consulting and IFBI with NIT. that merger is also 19:19 19 minutes, 19 seconds getting is in its final stages uh and we will soon have the right set of uh 19:26 19 minutes, 26 seconds actions uh in place once the court uh pronounces the order. So overall I think 19:34 19 minutes, 34 seconds uh Panka has already talked about that in a difficult year I think we managed 19:40 19 minutes, 40 seconds uh to stay not just above water but also have a strong growth and rebound uh with 19:47 19 minutes, 47 seconds a strong order intake and also convertion of lots of it in revenue. our AI first offerings. I think they'll keep 19:56 19 minutes, 56 seconds us in goodstead as we go forward. We're looking forward the or to the opportunity of taking advantage of this 20:03 20 minutes, 3 seconds momentum in time to come. Having said that, we do have economic uncertainty and other headwinds and I guess these 20:11 20 minutes, 11 seconds will have to be taken in their stride as we go forward. I'll stop now and hopefully by now some people have questions. 20:20 20 minutes, 20 seconds Thank you very much sir. We will now begin the question and answer session. 20:25 20 minutes, 25 seconds Anyone who wishes to ask a question may press star and one on the external telephone. 20:31 20 minutes, 31 seconds If you wish to withdraw yourself from the question queue, you may press star and two. 20:36 20 minutes, 36 seconds Participants are requested to use handset while asking a question. 20:42 20 minutes, 42 seconds Ladies and gentlemen will wait for a moment while the question queue assembles. 20:51 20 minutes, 51 seconds Participants to join the question key you may press star and one. First question is from the line of Rahul Jen from Dalith Capital. Please go ahead. 21:07 21 minutes, 7 seconds Uh thanks for the opportunity. Yeah hope I'm uh audible now. Yes you are. 21:15 21 minutes, 15 seconds Yes. Uh so you know uh if I uh if I see the business X of IM new it looks like the organic business are slightly down 21:24 21 minutes, 24 seconds despite a decent order intake to start with. Uh of course that number has further improved. uh but what uh brings 21:33 21 minutes, 33 seconds us uh you know what confidence uh we add up which we could not do last execute last year but may be able to do it this 21:41 21 minutes, 41 seconds time for us to have a positive thought process uh on the start 21:49 21 minutes, 49 seconds okay uh I I'll I'll say my bit and then I'll uh ask to explain uh I think the 21:57 21 minutes, 57 seconds important issue is uh first of all Last year there were headwinds and we were in a negative growth period. We clawed our 22:05 22 minutes, 5 seconds way back from there. I think the BFSI sector was was uh was it was challenged 22:12 22 minutes, 12 seconds right through the year. Uh and in fact uh at the sector level I mean at these two businesses levels uh BFSI and others 22:20 22 minutes, 20 seconds have had minus 12% over the previous year. On the other hand technology has had a plus 20. 22:28 22 minutes, 28 seconds So the technology uh momentum is coming from AI adoption and higher level skills. Uh as you know fresher hiring 22:37 22 minutes, 37 seconds will remain choppy and we decided that we'll build our solutions which are agnostic to that and start addressing 22:45 22 minutes, 45 seconds the industry. I think that strategy worked out. our AI offerings are getting accepted well and uh obviously uh I am 22:53 22 minutes, 53 seconds Neo is part of us and uh to that extent I think that growth is contributing to the momentum I think the opening order 23:03 23 minutes, 3 seconds book will contribute to our going forward if BFSI's green shoots that we saw in this quarter continue and looks 23:12 23 minutes, 12 seconds like they are at least in the coming uh in the coming quarter we should be in a position to back to be back on high 23:20 23 minutes, 20 seconds growth paths very very soon. Uh I think that's that's all I would like to say at this point of time. 23:32 23 minutes, 32 seconds Hold on. I think I'll ask uh your followup and then 23:40 23 minutes, 40 seconds uh Sure. Yeah. Just uh it's it's just like a double click on the same thing. 23:44 23 minutes, 44 seconds uh what I could hear you saying is that uh for 27 we are expecting a stronger uh 23:52 23 minutes, 52 seconds revenue uh with a better margin. Is there a uh so when you say stronger you're comparing the fullear growth that 24:00 24 minutes we have reported overall basis a better growth number than that number is that what we trying to uh tell if the environment was to remain stable? 24:11 24 minutes, 11 seconds Yes. The question is the economic uncertaintity uh and the overall environment 24:17 24 minutes, 17 seconds uncertainty actually uh uh does not allow us to say that we can stand on top of the roof and say we will do better 24:26 24 minutes, 26 seconds than last year. All our efforts are in that direction. This quarter does appear we will have a double digit growth but 24:34 24 minutes, 34 seconds we'll have to cross this bridge quarter at a time in this year. Normally we uh we guide for the whole year which we are 24:42 24 minutes, 42 seconds doing now also but we'll have to keep revisiting this every quarter. It depends on how the rest of the world 24:49 24 minutes, 49 seconds plays out. The AI opportunity strong I guess you are as aware of it and even 24:55 24 minutes, 55 seconds more perhaps than I am. Uh the adoption of AI has moved from a pilot to production stage. NIT by itself has now 25:05 25 minutes, 5 seconds use cases which have actually created value for our customers that should give us a positive momentum. Our own teams 25:13 25 minutes, 13 seconds and our go to market strategy is well in place. We are past the investment cycle the peak of the investment cycle as it came to platform and products. 25:25 25 minutes, 25 seconds So I think to that extent our expense on that part will be less and even in go to market we will become much more 25:33 25 minutes, 33 seconds concentrated and focused on what's working and uh I think to that extent we should uh and obviously uh right now 25:42 25 minutes, 42 seconds there is a clarion call to cut expenses all over the place uh we will also be doing the same or we are doing the same 25:49 25 minutes, 49 seconds in any Uh sure. Uh that is all and uh just on 26:00 26 minutes the uh last bit since you mentioned about this uh cost measures what I could see during the year we have seen uh 26:08 26 minutes, 8 seconds headcount addition even after IMU integration in Q1. So uh can we uh can 26:16 26 minutes, 16 seconds we indicate where this which area this hiring is happening and why despite not so uh good organic growth why the hiring 26:26 26 minutes, 26 seconds continues is it more like replacement of the third party versus in-house or is there any other area where we investing 26:33 26 minutes, 33 seconds more yeah so I think I am near specific because they built they saw a great 26:42 26 minutes, 42 seconds opportunity in uh uh building uh uh a higher a curriculum given the fact that 26:49 26 minutes, 49 seconds uh you would have heard this before that now programmers will not be required the way they were required more architects will be required they've come up with a 26:58 26 minutes, 58 seconds very strong curriculum and some very good offerings to help learners build those skills I think that investment as 27:05 27 minutes, 5 seconds well as u uh balancing certain expenses which used to be in a variable form They 27:13 27 minutes, 13 seconds took a call to build a small fixed capacity for that which in my opinion is a very good idea. Why? Because that capacity gets blocked in a university 27:22 27 minutes, 22 seconds system for the whole year. Uh and that has resulted in uh some positive momentum for them. I think those will be 27:30 27 minutes, 30 seconds some contributors but looking at it in isolation perhaps will not be a good idea. NIT on the other hand uh the the 27:39 27 minutes, 39 seconds organic business actually uh reduced its headcount uh by 30 over the year if you 27:47 27 minutes, 47 seconds uh look at the numbers. uh IMO added despite uh uh actually more than their growth as 27:55 27 minutes, 55 seconds we were discussing this morning but that's an opportunistic very very uh targeted investment to contribute to the 28:05 28 minutes, 5 seconds uh uh improved growth and IMO was ahead of their growth. 28:13 28 minutes, 13 seconds quarters. Thank you. That's from one moment. Do you want to add? No, I think you've covered everything and 28:22 28 minutes, 22 seconds I'm sure we'll meet uh at some point the investor can expect more. 28:30 28 minutes, 30 seconds Sure. Thanks. Thank you. 28:37 28 minutes, 37 seconds Participants to ask a question you may press star and one. 28:42 28 minutes, 42 seconds Next question is from the line of Ganesh Shetty an individual investor. Please go ahead. 28:49 28 minutes, 49 seconds Thank you for the opportunity. 28:52 28 minutes, 52 seconds Looking at the personal job market and uh challenging macro. Do you think that 29:00 29 minutes this quarter you know we may have uh we grow this consumer facing business technology business 29:09 29 minutes, 9 seconds and uh are we in a position to finetune our investment directly toward enterprise 29:17 29 minutes, 17 seconds digest more than a consumer facing industry any of 29:27 29 minutes, 27 seconds uh let me rephrase that. uh and then we can respond. I mean I just want to phrase it so I'm sure I understand your question. Thanks for asking and thanks 29:35 29 minutes, 35 seconds for joining the call and it's it's good to always have you on this call. Uh I think what you're asking is if given the 29:44 29 minutes, 44 seconds uncertainty etc in this quarter this environment whether we can move our focus from consumer to more of enterprise business. 29:55 29 minutes, 55 seconds Yeah. 29:57 29 minutes, 57 seconds take a time and then yeah I think the question is addressed to you 30:03 30 minutes, 3 seconds I would agree with you at this time I think we have 6 million technology folks to be reskilled we should put all and 30:13 30 minutes, 13 seconds more energy behind doing that we have 1 million uh university graduates graduating every year we should put more 30:20 30 minutes, 20 seconds and enough energy on that to reskill them and upskill them to get ready for the workplace Yes. So I I would agree with that. 30:29 30 minutes, 29 seconds So in fact that is uh part of what we've done as well in spoke about some of the programs we've 30:39 30 minutes, 39 seconds launched even in our direct to consumer space are programs targeted to working professionals. Right? So there are working professionals who are being 30:47 30 minutes, 47 seconds upskilled or reskilled by their organizations. 30:51 30 minutes, 51 seconds But a lot of uh working professionals don't want to wait for their organizations to upskill them. they are happy to come to a someone like NIIT 31:00 31 minutes join one of our courses where they can upskill themselves uh especially where uh uh things like agentic AI or using AI 31:07 31 minutes, 7 seconds tools is concerned and those are the programs that we launched uh uh in Q4 in Q3 actually and we've seen good traction 31:15 31 minutes, 15 seconds for those programs and you're right the opportunity is there and we are pivoting uh our resources to focus more on 31:24 31 minutes, 24 seconds working professional opportunity right it need not necessarily be on the enterprise but it is working professionals over undergraduates or 31:32 31 minutes, 32 seconds early careers professionals so that is the opportunity and we are pivoting towards that 31:40 31 minutes, 40 seconds thank you sir my second question is regarding the acquisition or inorganic initiative now as we already mentioned 31:48 31 minutes, 48 seconds and as we know that the job market is in a very constrained condition along with that there the fast change in demand in 31:57 31 minutes, 57 seconds technology also the value for acquiring any assets may be also difficult at this 32:04 32 minutes, 4 seconds point of time. So considering all these factors uh are you fine- tuning or inorganic 32:12 32 minutes, 12 seconds initiative strategy because of it we are not seeing any inorganic acquisition for the last one year or so. So can you 32:21 32 minutes, 21 seconds please throw some light on this s for our understanding? 32:27 32 minutes, 27 seconds Sure. So you're right the environment is such that uh it is harder to find good 32:35 32 minutes, 35 seconds uh in our current capacities. Having said which we are continuously on the lookout and in uh conversations with 32:42 32 minutes, 42 seconds potential acquisitions. U having said which we haven't yet found one that uh worked for us. Right. We have certain 32:51 32 minutes, 51 seconds guidelines that uh uh we use in terms of what makes a good opportunity for us and 32:59 32 minutes, 59 seconds uh while there were two or three that we looked at very closely uh we haven't we haven't found anything that we liked enough to uh bring uh bring in and we 33:09 33 minutes, 9 seconds are still on the lookout. We continue to uh look at opportunities that exist and as you have seen in the whole uh 33:16 33 minutes, 16 seconds education uh and technology space there has been consolidation there has been uh uh some movements but uh we we haven't 33:25 33 minutes, 25 seconds uh seen enough of uh uh good opportunities that we would like to bring forward. So this is why you've not 33:33 33 minutes, 33 seconds heard any activism in the last one years but it is an ongoing uh process and hopefully we'll find uh something good. 33:41 33 minutes, 41 seconds You want to add some color to that? 33:44 33 minutes, 44 seconds Yes, I I think uh we continue to have an active pipeline and I think uh the NEO 33:52 33 minutes, 52 seconds acquisition uh was a a very good uh addition to the family in the right uh 33:59 33 minutes, 59 seconds point of the strategy set and the timing is also very good. So uh I think we are we are giving full attention to make 34:07 34 minutes, 7 seconds sure that that grows at the same time there is pipeline and there are always active discussions on but obviously we 34:14 34 minutes, 14 seconds can only talk when something uh fractifies because otherwise it tends to become speculative. 34:23 34 minutes, 23 seconds So my third question is regarding the AITA margin. You have been in a very long cycle of investment and you are 34:31 34 minutes, 31 seconds already guiding first quarter to be slightly negative. So uh can you expect 34:39 34 minutes, 39 seconds a good improvement in IITA margin Q2 and Q3 considering the slowing of investment cycle and the growth initiative? Sir, 34:49 34 minutes, 49 seconds can you please throw some light on this s and that's all problem. Thank you very much. Thank you. But please respond. 34:58 34 minutes, 58 seconds So uh there's a couple of things on uh the investment cycle or the long investment cycle, right? So one we uh 35:07 35 minutes, 7 seconds built out our uh LMS platform and uh through last year we also enabled it with AI and that that part of investment 35:16 35 minutes, 16 seconds is behind us. we we have a platform that uh uh our customers can use for uh their learning uh and delivery. Um having said 35:25 35 minutes, 25 seconds which there is still with all the uh fastpaced innovation that's happening in AI we have to keep pace with creating 35:34 35 minutes, 34 seconds content creating curriculum which reflects uh these changes. So that side of investment will continue and we uh 35:42 35 minutes, 42 seconds are also recalibrating all our existing courses with AI. So everything that we are doing is uh uh getting updated with 35:51 35 minutes, 51 seconds AI as well and uh which is why you are seeing uh that will continue a little more u but yes you should be able to see 36:00 36 minutes some improvements uh uh towards the tail end of the year as uh some of these uh investments come to fruition but but 36:09 36 minutes, 9 seconds right now we will continue to remain in an investment cycle because the there is a lot of opportunity uh to be created 36:17 36 minutes, 17 seconds uh by investing in creating tools and products uh that we can take to customers. 36:25 36 minutes, 25 seconds Anything you want to add to that or No, I think this is perfect. Thank you sir. All the time. 36:34 36 minutes, 34 seconds Thank you. 36:36 36 minutes, 36 seconds Participants if you wish to join the question queue you may press star and one. 36:44 36 minutes, 44 seconds So while you are waiting for a question cue I just thought I'll use this opportunity uh to invite our uh director 36:52 36 minutes, 52 seconds on the board Mr. Sapnesh Lala to talk about uh how elsewhere in the world AI 36:58 36 minutes, 58 seconds is uh getting used in improving the effectiveness and productivity in organizations and some of the strategies that are coming out of the enacting. 37:10 37 minutes, 10 seconds Uh thanks Vijay. Uh something that we are starting to use a lot of now we have six or seven uh enterprise wide use 37:19 37 minutes, 19 seconds cases uh at MLSL uh uh where uh as you might know simulations and coaching are known to be the best ways to train. 37:30 37 minutes, 30 seconds example uh for most important or more most critical jobs uh such as flying an 37:37 37 minutes, 37 seconds airplane uh airlines often use a flight simulator along with a coach to help pilots train 37:45 37 minutes, 45 seconds better. Uh we are starting to use that paradigm and coupling that paradigm with 37:52 37 minutes, 52 seconds uh uh an enterprise level performance sensing engine to 38:00 38 minutes uh keep a tab on performance of people and then identify the right simulations 38:08 38 minutes, 8 seconds and coaching to send to them in the flow of work. So that rather than focusing on training and creating courses that 38:16 38 minutes, 16 seconds result into training, we focus on improving performance. And uh our enterprise customers are starting to see 38:24 38 minutes, 24 seconds the benefit. For example, one client who used to take more than a year to build 38:31 38 minutes, 31 seconds up capability on a certain task is now able to shrink that time to proficiency by over six months. uh another client uh 38:40 38 minutes, 40 seconds who uh uh used this model to build sales capability was able to see significant 38:49 38 minutes, 49 seconds improvements in pipeline build. So, uh, you're starting to see these, uh, new 38:56 38 minutes, 56 seconds models scale up and actually move the needle on capability. And I think that's where the market is going to go. And 39:04 39 minutes, 4 seconds I'm, uh, really heartened to see how uh, NIT Limited in India is starting to 39:11 39 minutes, 11 seconds bring such models to its enterprise clients uh, in India, whether it's G, GSIS or GCC's and even banks. 39:29 39 minutes, 29 seconds Uh are there any more questions? No sir, there are no questions. 39:37 39 minutes, 37 seconds Participants to join the question queue you may press star and one. 39:51 39 minutes, 51 seconds Next question is from the line of Kunal Tokus from FVC. Please go ahead. 39:58 39 minutes, 58 seconds Hello. Am I audible? Yes, please. 40:02 40 minutes, 2 seconds Okay. Um so my question is about the uh 40:09 40 minutes, 9 seconds uh the question is it the market for uh course providers and service providers promising rescaling for AI? 40:22 40 minutes, 22 seconds uh uh is that market getting cluttered so that uh NIP may be having uh uh 40:31 40 minutes, 31 seconds trouble standing out and uh uh selling attracting uh customers. Is is that a concern? 40:42 40 minutes, 42 seconds Okay. Uh that's a very good question by the way because if you see uh just about anybody and everybody has an AI skills 40:52 40 minutes, 52 seconds offering uh but I think our experience and our early mover uh uh advantage comes in the 40:59 40 minutes, 59 seconds way uh comes to our uh uh to our benefit. uh given the fact that we are 41:06 41 minutes, 6 seconds past creating just AI literacy uh we are into now creating AI fluency and 41:13 41 minutes, 13 seconds creating outcome based training and I think there we have a unique spot and organizations who are discerning enough 41:22 41 minutes, 22 seconds to take advantage of AI in a more directed and focused way uh would pick 41:29 41 minutes, 29 seconds us up as is visible from the contracts that we are And I think there uh these are 41:37 41 minutes, 37 seconds engagements where we have to demonstrate value and uh uh uh and and at to that 41:45 41 minutes, 45 seconds extent we take higher accountability there are strong brand name our past experience as well as having done it 41:53 41 minutes, 53 seconds elsewhere in the world I think all comes to our benefit. So we think we will have an advantage but yes you are absolutely 42:00 42 minutes right. Uh AI literacy courses are coming through the woodwork and uh everybody 42:08 42 minutes, 8 seconds and everywhere you have lots of these courses but specific courses which are personalized to your situation and 42:15 42 minutes, 15 seconds yourself uh I think there are few and far between I think that's where we differentiate ourselves. 42:25 42 minutes, 25 seconds Thank you very much. That was my only question. All right. Thank you. 42:32 42 minutes, 32 seconds Next question is from the line of Aman Prakash who is an individual investor. Please proceed. 42:39 42 minutes, 39 seconds Uh hello. Yeah. Thank you for giving me this opportunity. So I know that you know these are still early days and the company is in investment phase but I 42:46 42 minutes, 46 seconds just wanted to ask if do you have any like idea of the total addressable market or the size of the opportunity 42:54 42 minutes, 54 seconds that lies ahead for us and where we are now versus where we can be in the next couple of years. 43:01 43 minutes, 1 second Okay. uh I think where we can be uh if everything remains the same which it is 43:07 43 minutes, 7 seconds not going to be uh uh the the opportunity is high uh AI is going to make a very significant difference to 43:17 43 minutes, 17 seconds the way people work and most certainly how people learn. We think we are at a 43:23 43 minutes, 23 seconds very very strong point as far as that is concerned. Now in terms of if you looked at last year, last year AI projects were 43:32 43 minutes, 32 seconds in pilot stage. This year serious investments went in uh at least later part of the year and in the coming year 43:40 43 minutes, 40 seconds I think there is much more appetite. Uh that appetite has to reside in its outcomes. Those who will be able to 43:49 43 minutes, 49 seconds realize outcomes will actually invest more because they can see we have elsewhere in the world and Sap just 43:56 43 minutes, 56 seconds shared uh instances specific instances where people have seen uh benefits coming. Uh I think those are the cases 44:04 44 minutes, 4 seconds which will continue to invest. I have a feeling the market size at this point of time to constrain it will perhaps not be 44:13 44 minutes, 13 seconds the most productive thing. there are some established domains where I think AI's uh applicability will be very high 44:22 44 minutes, 22 seconds and uh we are focusing on some of those domains to take advantage of the growing market. 44:30 44 minutes, 30 seconds Uh if you really want to know what is the uh size of the market and stuff like that there are reports and there are 44:36 44 minutes, 36 seconds more reports and uh you could refer to any one of them. Correct. Yeah. Thanks. 44:47 44 minutes, 47 seconds Thank you participants. If you wish to join the question, you may press star and one. 45:02 45 minutes, 2 seconds As there are no further questions from the participants, I now hand the conference over to the management for the closing comments. 45:09 45 minutes, 9 seconds Okay. Thank you very much. as usual uh uh very interesting questions and thank you for joining the call. I think your 45:17 45 minutes, 17 seconds questions create the right amount of inquiry in our own minds and help us sharpen our strategy. Uh we thank you 45:25 45 minutes, 25 seconds for all the interest. If there is any question which is unressed and uh our teams will be very happy to 45:35 45 minutes, 35 seconds uh answer them or organize meetings or calls for you as you would like to. So with that I would now like to close the call and wish you the very best. 45:46 45 minutes, 46 seconds Thank you sir. On behalf of NIT Limited that concludes this conference. Thank you all for joining us and you may now disconnect your lines.