NIIT Learning Systems Ltd — Q4 FY26

Niit Learning Systems Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=obbnkKpcXBI Published: 1 day ago

0:01 1 second Ladies and gentlemen, good day and welcome to NIT Learning Systems Limited Q4 FYI26 earnings conference call. As a 0:09 9 seconds reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance 0:18 18 seconds during the conference call, please signal an operator by pressing star then zero on your Touchstone phone. Please note that this conference is being 0:26 26 seconds recorded. I now hand the conference over to Mr. Sapnh Lala, CEO and executive director, NIT Learning Systems Limited. 0:34 34 seconds Thank you and over to you. 0:38 38 seconds Thank you and thank you and good afternoon uh everyone. Thanks for joining the NIT Learning Systems Limited 0:47 47 seconds Q4 FI26 earnings call and thank you for your continued interest in the company. Our agenda is 0:57 57 seconds today to discuss the Q4 and FY26 financial and operating performance, the progress on our AI first strategy and AI 1:06 1 minute, 6 seconds enabled revenues, update on inorganic activity completed during the quarter, discuss the path 1:13 1 minute, 13 seconds ahead and then open it up for any questions. 1:19 1 minute, 19 seconds First uh let me set the context for this quarter. As you all might be aware, the global environment continues to remain uncertain. 1:28 1 minute, 28 seconds Client decision-making cycles are still elongated and discretionary spending continues to be closely scrutinized. 1:36 1 minute, 36 seconds At the same time, we continue to see sustained demand for outsourcing and operating model transformation as 1:43 1 minute, 43 seconds clients focus on cost agility and productivity. 1:48 1 minute, 48 seconds We continue to see wallet share expansion across a wide range of our clients. Though the overall environment remains dynamic. 1:56 1 minute, 56 seconds AI is continuing its rapid march to becoming mainstream with significant investments by early movers across 2:05 2 minutes, 5 seconds segments. This rep represents a once in a-lifetime opportunity for us. 2:11 2 minutes, 11 seconds And nowhere is this more consequential than in enterprise learning and development. 2:17 2 minutes, 17 seconds AI is fundamentally changing what learning and development can deliver and NLSL is at the forefront of that transformation. 2:27 2 minutes, 27 seconds I will come back to this uh topic of AI in detail before we open up for questions. But let me say upfront, we 2:36 2 minutes, 36 seconds believe we are building something that will redefine how enterprises develop their people. And this investment will 2:43 2 minutes, 43 seconds not only superize our opportunities but set us apart distinctively. 2:50 2 minutes, 50 seconds In context, in this context, as we closed out the year and the fourth quarter, our revenue 2:58 2 minutes, 58 seconds for Q4 was at 5,252 million INR was up 5% quarteron quarter and 22% yearonear. 3:10 3 minutes, 10 seconds In constant currency terms, we grew 2% Q and 14% yearonear, including 3:17 3 minutes, 17 seconds contributions from inorganic acquisitions, including MST and Sweet Rush, 3:25 3 minutes, 25 seconds excluding our North American real estate training contract, which uh closed in 3:32 3 minutes, 32 seconds September of or June of uh 2025. 3:42 3 minutes, 42 seconds Q4 revenue was up 31% yearonear, 25% in US dollar terms at the overall 3:51 3 minutes, 51 seconds level and 18% yearonear for the organic business, 12% in US dollar terms. I want 3:58 3 minutes, 58 seconds to be direct, revenue came in below our expectations. 4:04 4 minutes, 4 seconds A couple of large clients made transient but material reductions to their year-end LND budgets as they 4:12 4 minutes, 12 seconds recalibrated in response to increased macro uncertaintity. 4:16 4 minutes, 16 seconds We view this as timing driven not structural and our ongoing engagement with both those clients confirms that view. 4:25 4 minutes, 25 seconds Q4 EIDA was at 1,02 million was up 16.8% 8% yearonear at a margin of 19%. 4:36 4 minutes, 36 seconds Excluding Sweet Crush that joined the NIT family during the quarter and seasonally at its 4:44 4 minutes, 44 seconds weakest quarter and early in its integration with NIT, the margin was above 20% consistent with our fullear delivery of 20.3%. 4:56 4 minutes, 56 seconds Depreation and amotization was at rupees 205 million million versus 194 in the 5:04 5 minutes, 4 seconds previous quarter. net other income of 144 million versus 3 million last year 5:10 5 minutes, 10 seconds and 104 million last quarter including Treasury income of 36 million lower yearon-year primarily due to 5:18 5 minutes, 18 seconds marktomarket impact of in rates interest rate changes during the period. Net 5:25 5 minutes, 25 seconds exceptional gain of rupees 286 million comprising of a gain of 455 million due 5:34 5 minutes, 34 seconds to fair value adjustment in future acquisition liability on account of St. 5:40 5 minutes, 40 seconds Charles Consulting Group transaction related expenses of 77 million INR predominantly on account of acquisition 5:48 5 minutes, 48 seconds of Sweet Rush and a prudent provision of 92 million against carrying value of a minority strategic investment we had made in April of last year. 5:59 5 minutes, 59 seconds Foreign exchange loss of uh rupees 52 million. Net other expenses of 51 million. net finance cost of 76 million. 6:10 6 minutes, 10 seconds The tax was at 169 million INR. 6:15 6 minutes, 15 seconds Effective tax rate was 18% versus 22% in the previous quarter primarily due to no 6:21 6 minutes, 21 seconds tax on gain from adjustment and future acquisition liability. 6:27 6 minutes, 27 seconds PAT was at 771 million INR was up 58% yearonear with 6:35 6 minutes, 35 seconds EPS of rupees 5.61 versus rupees 5.42 in the previous 6:42 6 minutes, 42 seconds quarter and 3.58 previous year. 6:47 6 minutes, 47 seconds During the quarter, we signed five new long-term annuity clients, taking the total additions during the year to 21. 6:57 6 minutes, 57 seconds New clients for the quarter included a global leader in data centers and digital infrastructure. 7:03 7 minutes, 3 seconds Two of the world's leading financial institutions, a major EV battery manufacturer 7:10 7 minutes, 10 seconds building gigafactories across North America and Europe, a Fortune50 global technology company and one of the 7:18 7 minutes, 18 seconds largest uh world's largest PC and enterprise infrastructure providers. 7:23 7 minutes, 23 seconds We also completed two two renewals and delivered two scope expansions. 7:30 7 minutes, 30 seconds As a result, our long-term annuity clients tally has increased to 110 at the end of the quarter and the revenue 7:38 7 minutes, 38 seconds visibility improved to US49 million. This is up from US dollars 415 7:47 7 minutes, 47 seconds million the previous quarter and US dollars 390 million last year. 7:55 7 minutes, 55 seconds The increase reflects strong new bookings during the quarter which include expansion of an existing top 20 client into a top five client. 8:08 8 minutes, 8 seconds For the full year, FI26 was strong broad-based saw strong 8:15 8 minutes, 15 seconds broad-based growth with fullear revenue at 19,520 8:21 8 minutes, 21 seconds million. INR it was up 18.1% yearonear and up 11% in constant currency. Organic 8:30 8 minutes, 30 seconds revenue grew 13% yearonear and 7% in constant currency excluding the North 8:37 8 minutes, 37 seconds American real estate training contract which concluded in September of 2025. 8:44 8 minutes, 44 seconds Organic growth was 14% in US dollar terms. 8:48 8 minutes, 48 seconds Ibida for the year was 3,957 million INR 8:55 8 minutes, 55 seconds at a margin of 20.3% within our guided range of 20 to 21%. 9:01 9 minutes, 1 second Reflecting continued delivery discipline alongside targeted growth investments. 9:06 9 minutes, 6 seconds PAT for the year was 2477 million. INR was up 9% yearonear an EPS of 18.09 09 per share. 9:19 9 minutes, 19 seconds Growth was driven by ramp ups and wallet share expansion within our existing client base. Revenue from existing clients grew 4% year on year. 9:30 9 minutes, 30 seconds This was complemented by healthy muo edition as well as contributions from MST and sweetrush. 9:40 9 minutes, 40 seconds Top five clients contributed 32% to the fullear revenue. 9:46 9 minutes, 46 seconds Top 10 contributed 50% and top 20 contributed 69% of revenue. 9:55 9 minutes, 55 seconds Among our customers, each of our top five clients contributed over US dollars 10 million in revenue in FY26 and each 10:05 10 minutes, 5 seconds of our next eight clients contributed between five and 10 million. 10:11 10 minutes, 11 seconds Our acquisitions are shaping well. MST added a new annuity client and delivered 10:18 10 minutes, 18 seconds a significant scope expansion during the quarter. 10:22 10 minutes, 22 seconds We crush expanded its engagement with a top 20 global pharma company, an early proof point of the strategic value of that acquisition. 10:31 10 minutes, 31 seconds This performance places us clearly ahead of our peer group and uh uh both on 10:39 10 minutes, 39 seconds growth and profitability as and as we enter FY27 we have a stronger platform than we had 12 months ago. 10:50 10 minutes, 50 seconds The balance sheet and cash flow metrics remain strong. DSO stood at 65 days as compared to 74 days previous quarter and 10:59 10 minutes, 59 seconds 56 days Last year cash and cash equivalents were at 9,366 million. 11:09 11 minutes, 9 seconds The net cash was at 6,692 million. The operating cash flow for FY26 was at 3,1 11:19 11 minutes, 19 seconds million as compared to 2595 million last year. The cash flow for the 11:25 11 minutes, 25 seconds quarter for the year was 2,657 million INR versus 2,123 million INR. 11:35 11 minutes, 35 seconds The headcount stood at 2,546 at the year end, up 136 yearon year and up 113 quarteron quarter. 11:47 11 minutes, 47 seconds On January 9th, as uh we have mentioned earlier, over a hundred uh sweet 11:54 11 minutes, 54 seconds Russians joined the NIT family across the United States and Costa Rica, strengthening our creative and human- 12:02 12 minutes, 2 seconds centered but AI enabled learning capabilities. 12:07 12 minutes, 7 seconds Let me spend a couple of minutes on the inorganic growth that we witnessed over the last year. During FI26, we completed 12:15 12 minutes, 15 seconds two strategic acquisitions that meaningfully expand our capabilities and geographic reach. MST Group, 12:24 12 minutes, 24 seconds a leading managed SER learning services provider in the Dark region, serving market clients across automotive, 12:31 12 minutes, 31 seconds industrials, and energy sectors, establishes a presence in Germany, Europe's largest economy, and is a 12:38 12 minutes, 38 seconds meaningful step in building out a European platform. 12:44 12 minutes, 44 seconds Strong client profile with long-standing relationships in structurally important sectors undergoing significant work workforce transformation. 12:53 12 minutes, 53 seconds Integration is progressing well. Q4 already delivered a scope expansion with an existing key client and a new logo 13:01 13 minutes, 1 second addition, an early validation of the acquisition thesis and of the cross-ell opportunity between NST and NIT. 13:10 13 minutes, 10 seconds Sweet Rush completed early in Q4 an award-winning provider of human- centered AI enabled learning 13:19 13 minutes, 19 seconds experiences, XR immersive experiences, certifications and strategic inter 13:26 13 minutes, 26 seconds training interventions serving Fortune 1000 corporations and professional associations. 13:32 13 minutes, 32 seconds Acquisition of Sweet Rush moves our mix up the value chain into outcomeled performance critical learning with a 13:40 13 minutes, 40 seconds high quality and sticky client base. The synergy road map centers on converting project work into comprehensive 13:49 13 minutes, 49 seconds long-term engagement and we are starting to see early green shoots. The margins will build mar uh progressively over 13:58 13 minutes, 58 seconds approximately six quarters reflecting the business's meaningful seasonality EPS accretion expected from FY27. 14:10 14 minutes, 10 seconds Another couple of minutes on market update. As I uh stated uh in my opening, the market volatility continues to 14:17 14 minutes, 17 seconds heighten. the emphasis on cost optimization prompting increased client engagement on large-scale cost takeout 14:26 14 minutes, 26 seconds and transformation initiatives. Although decision-m cycles continue to be prolonged, AI and its profound impact on 14:34 14 minutes, 34 seconds the practice of L & starting to become visible, early adopters are starting to take advantage 14:40 14 minutes, 40 seconds of AI with our assistance. We think this has the potential to become a multi-year growth opportunity for NLSL. 14:50 14 minutes, 50 seconds We believe NLSL is very well positioned to capture a disproportionate share of these opportunities underpinned by 14:58 14 minutes, 58 seconds continued investments in capabilities including AI, consulting and advisory services and in 15:07 15 minutes, 7 seconds go to market with a focused effort on wallet share expansion across our existing client base. 15:14 15 minutes, 14 seconds A strong brand as a trusted and reliable market leader. Our deal pipeline remains 15:21 15 minutes, 21 seconds robust with active opportunities across large outsourcing deals spanning technology, automotive, life sciences, 15:29 15 minutes, 29 seconds BFSI and other sectors. We continue to see accelerating structural transformation across the industries we 15:36 15 minutes, 36 seconds serve driven by digitization, decarbonization, biioarma innovation and now more importantly AI. 15:48 15 minutes, 48 seconds Many organizations are actively restructuring to improve cost agility fueling increased demand for outsourcing. This environment is 15:56 15 minutes, 56 seconds triggering an uptick in outsourcing activity and NLSL is uniquely positioned to capitalize especially as select 16:03 16 minutes, 3 seconds competitors face strategic or operate operational distractions. 16:08 16 minutes, 8 seconds However, we would like to point out that due to the significant market uncertainty, the decision-m cycles have been stretched and are likely to stay 16:17 16 minutes, 17 seconds stretched till the market uncertain continues. 16:25 16 minutes, 25 seconds For our guidance, we want to limit the guidance to the fiscal year 2027. 16:32 16 minutes, 32 seconds We enter the year with greater vis revenue visibility. It gives us a strong foundation heading into the year. That 16:41 16 minutes, 41 seconds said, the macroeconomic environment remains uncertain and decision cycles continue to be elongated. We expect this 16:49 16 minutes, 49 seconds to influence the pace of new ramp ups particularly in the new near term. For FY27, we expect the revenue to grow in 16:57 16 minutes, 57 seconds higher single digits subject to the macroeconomic environment. We remain confident in our ability to outperform 17:06 17 minutes, 6 seconds the market through this cycle. On margins, we expect 18 to 20% ebida margin for the full year 17:14 17 minutes, 14 seconds reflecting continue delivery discipline and phased margin build in sweet rush as the business scales as well as integrates fully within the NIT system. 17:26 17 minutes, 26 seconds Given our investments, we expect uh 18% margins in the first quarter. 17:34 17 minutes, 34 seconds Before we open for questions, I wanted to come back to the theme I flagged at the outset, AI and the transformation of the enterprise learning. 17:45 17 minutes, 45 seconds I wanted to spend a minute on the progress of uh progress on AI enablement we have witnessed or we have driven. As 17:54 17 minutes, 54 seconds shared earlier, we've made significant progress in building our AI capability. 17:59 17 minutes, 59 seconds Continue to have a poll position in the L &D market as acknowledged by our clients and industry analysts. 18:08 18 minutes, 8 seconds NLSL was independently recognized as a market leader in the Forway AI market assessment in 2025. 18:16 18 minutes, 16 seconds Assessment 2025 for digital learning. 18:18 18 minutes, 18 seconds The first indepth independent study of AI application in L &D market 18:25 18 minutes, 25 seconds assessments have revealed a significant gap in competitors say do ratios that is majority of the AI 18:35 18 minutes, 35 seconds features promised across the market uh have not yet been uh have have not 18:43 18 minutes, 43 seconds yet gone live with clients. In contrast, NLSL have delivered on every capability that we have promised and our clients 18:51 18 minutes, 51 seconds are seeing tangible results. We have testimonials from multiple clients on measurable impact. One of our clients 19:00 19 minutes saw their sales pipeline improve by over 1 million on average over six months following a AI enabled simulations and 19:08 19 minutes, 8 seconds coaching deployment. Another saw time to proficiency on methodology adoption shrink from one and a half years to 6 months. 19:18 19 minutes, 18 seconds This builds on a recognition as a strategic leader in the Fosway 9 grid for digital learning for the third con 19:27 19 minutes, 27 seconds consecutive year. NIT has always been at the cutting edge of technology in learning. Our AI first strategy in 19:35 19 minutes, 35 seconds learning has evolved into a considerable point of differentiation for us. We have gone live with a number of enterprise deploy deployments of our AI solutions. 19:46 19 minutes, 46 seconds Notably, total AI enabled revenue continues to grow as a share of business this quarter. 19:54 19 minutes, 54 seconds The share of business uh AI enabled business this quarter was 13 uh approximately 13%. 20:04 20 minutes, 4 seconds I wanted to spend a couple of minutes to talk about AIEL transformation for learn for the learning industry uh and our 20:12 20 minutes, 12 seconds architecture to address this once in a-lifetime opportunity. 20:17 20 minutes, 17 seconds The L &D industry has always faced a fundamental constraint. Individual coaching, the most effective form of 20:24 20 minutes, 24 seconds learning, has never been economically viable at scale. AI enables us to remove 20:30 20 minutes, 30 seconds that constraint and we believe the company that builds the right platform to deliver on this will own a large and 20:39 20 minutes, 39 seconds durable share of enterprise L & D spending for years to come. That is the opportunity we are going after. To that 20:47 20 minutes, 47 seconds end, our dedicated AI learning practice is developing a three component self-improving learning platform. First, 20:55 20 minutes, 55 seconds an AI coach. This replaces passive content delivery with personalized interactive coaching for every learner 21:03 21 minutes, 3 seconds whether they are working on long-term career development or preparing for a critical client meeting tomorrow morning. Second, a simulation manager. 21:13 21 minutes, 13 seconds This connects the learner to configurable realistic practice environments. The AI coach identifies the right simulation 21:21 21 minutes, 21 seconds for each learner in real time and custom configures it to their specific needs. 21:27 21 minutes, 27 seconds And then finally, a third, a signal engine. This continuously scans organizationwide performance data to 21:34 21 minutes, 34 seconds identify skill gaps, measures whether the training was actually moved uh whether the training has actually moved 21:43 21 minutes, 43 seconds business outcomes, feeds those results back to sharpen the system over time. 21:49 21 minutes, 49 seconds This is what turns the platform from a learning tool to a continuously improving performance system. 21:56 21 minutes, 56 seconds There's a second structural structural driver of demand that we believe is underappreciated. Historically, junior 22:04 22 minutes, 4 seconds employees build their judgment by doing routine tasks. The reputation and exposure of entry-level work was how people de develop their experience. 22:17 22 minutes, 17 seconds The experience needed to take on senior responsibilities. 22:21 22 minutes, 21 seconds AI is now automating much of the entry- levelvel work. Enterprises are consequently grappling with a new 22:28 22 minutes, 28 seconds problem. How do they develop judgment and senior level capability in their people without that traditional on the job exposure? 22:38 22 minutes, 38 seconds A simulation engines which use AI to generate large numbers of realistic dynamic scenarios are precisely the 22:46 22 minutes, 46 seconds answer to that question. They create a synthetic workload that accelerates judgment formation in a fraction of the 22:53 22 minutes, 53 seconds time it used to take in traditional work environment, traditional training. This proprietary intellectual property, this 23:01 23 minutes, 1 second is proprietary intellectual property owned by NIT learning systems and it positions us to capture a significant 23:09 23 minutes, 9 seconds share of the incremental opportunity that AI displacement is creating. 23:16 23 minutes, 16 seconds Commercially, we are using a component level pricing model with natural expansion economics built in. We're 23:24 23 minutes, 24 seconds validating the model and the measurement story through lighthouse deployments and engaging a client advisory board to 23:31 23 minutes, 31 seconds stress test both the evidence and the commercial framing. The organizational B build is underway alongside 23:40 23 minutes, 40 seconds new AI native practices covering performance consulting, simulation design and deployment, coaching configuration and the buildout of our sensing and signal signaling engine. 23:55 23 minutes, 55 seconds Today we have over 100 senior AI learning and science experts engaged in building AI solutions and products. a 24:04 24 minutes, 4 seconds depth of investment that very few if any peers can match. Like I pointed out earlier, AI enabled revenue now makes up 24:13 24 minutes, 13 seconds more than 13% of our total revenue. We have no doubt that this percentage will keep growing as AI becomes the default mode of delivery across the industry. 24:24 24 minutes, 24 seconds This investment will enable us to compete more effectively and support internal L &D teams who are overwhelmed 24:33 24 minutes, 33 seconds by the pace of change and the expectation to move the needle on enterprise capability and performance. 24:40 24 minutes, 40 seconds Over time, we expect the internal LND organization to shift from an operator role to an orchestrator role. That 24:49 24 minutes, 49 seconds transition represents an enormous and still largely untapped opportunity for NMS and with the investments we are 24:56 24 minutes, 56 seconds making we believe we are uniquely positioned to capture this opportunity. 25:02 25 minutes, 2 seconds Thanks for your time and now uh I'll open up the floor for any questions. 25:08 25 minutes, 8 seconds Thank you very much operator. Yes sir. Ladies and gentlemen, go ahead. Go ahead with the questions. 25:18 25 minutes, 18 seconds Yes. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a 25:25 25 minutes, 25 seconds question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, 25:32 25 minutes, 32 seconds you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, 25:39 25 minutes, 39 seconds we will wait for a moment while the question assembles. 25:45 25 minutes, 45 seconds We'll take our first question from the line of Bhat Kulati from Dalal and Rocha. Please go ahead. 25:53 25 minutes, 53 seconds Yeah. Hi, thank you for the opportunity. 25:55 25 minutes, 55 seconds I just had my first question was regarding a bookkeeping question. Just wanted to understand the 100 kores of IITA that we've achieved and the 19% 26:04 26 minutes, 4 seconds margin that we are showing. It's not I'm not able to tally that up with my numbers because the only thing that we add back is the forex and if we exclude 26:12 26 minutes, 12 seconds that our IITa stands at around 786 million. So just wanted to understand what that mismatch was if you can help me out. 26:27 26 minutes, 27 seconds So uh our our our finance team will work it out for you. But meanwhile maybe the you have another question we can get an answer. 26:37 26 minutes, 37 seconds Sure. No worry. Just trying to understand the shoot up that we've seen in uh you know employee cost and uh outsourcing cost which as a percentage 26:45 26 minutes, 45 seconds of our sales has also gone up. Uh is that what range it's going to continue to be in or should we see that taper down as uh more leverage comes in? 26:59 26 minutes, 59 seconds Uh I can respond on the outsourcing cost. Um as I've mentioned in the past on these calls, we have tried to limit 27:08 27 minutes, 8 seconds uh the overall headcount in the company and relied more on uh contractors to deliver on growth given the significant uncertaintity in the market. 27:21 27 minutes, 21 seconds So uh to reconcile the uh aida there are a 27:30 27 minutes, 30 seconds couple of other uh for the whole year heads which are there which are to do with the CSR component and also some 27:38 27 minutes, 38 seconds indirect tax uh related provision which we have made. 27:43 27 minutes, 43 seconds Okay. So that one off again that would be fair to assume. Yeah that's correct. 27:49 27 minutes, 49 seconds Got it. Got it. And yeah, just on the employee cost again, you know, we've seen a spike in this quarter of about 27:55 27 minutes, 55 seconds 46% of sales as now on employee cost. So just trying to understand is this the trajectory is this because of the 28:03 28 minutes, 3 seconds acquisition that we've made that is much lower margin than our overall business and you know just trying to understand how will this margin trend going forward 28:12 28 minutes, 12 seconds on a reported basis to speak you know because on an adjusted basis surely we can achieve that 18%. But the delta between our adjusted and reported is 28:20 28 minutes, 20 seconds always of 120 130 basis points which is pretty significant you know. So just trying to understand when can we see that delta also converge. 28:34 28 minutes, 34 seconds First of all I don't know I'm we are finding it hard to reconcile the numbers that you are referring to. So uh is it 28:43 28 minutes, 43 seconds okay if we do it offline with you and then we'll of course inform everybody else through a Sure. Sure sir. I'm just trying to 28:50 28 minutes, 50 seconds understand we normally don't have we are I I don't recollect ever having to reconcile the numbers we have declared 28:58 28 minutes, 58 seconds with ever but nevertheless there was always a first time so I will uh uh 29:05 29 minutes, 5 seconds Capil and Mr. Sanjay Malar CFO they'll be in touch with you and uh they will clarify the whole situation. 29:15 29 minutes, 15 seconds Uh no that's completely fine. They're just trying to understand going forward on future AITA just trying to understand what kind of uh what kind of margins I 29:23 29 minutes, 23 seconds mean I understand you guided for 18 to 20%. But uh how do we you know how can we expect that upper band being hit and 29:31 29 minutes, 31 seconds you know just trying to understand how will cost be going forward you know is this the employee no no so if you're wanting to understand 29:37 29 minutes, 37 seconds how upper upper end of the margin will be achieved that I think will be happy to explain. Yeah, like I 29:46 29 minutes, 46 seconds uh uh said in my opening comments that uh we are starting to integrate 29:54 29 minutes, 54 seconds uh Sweet Rush uh within NIT uh uh given uh their size and scale currently and 30:02 30 minutes, 2 seconds the fact that uh uh this past quarter is among their weakest quarters. uh we think that over the next few quarters 30:11 30 minutes, 11 seconds their margin will start ramping up uh as uh their accounting system starts to integrate with our accounting system and 30:19 30 minutes, 19 seconds methodology and uh so I think uh uh to some extent uh it is a question of seasonality and to some extent it's a 30:28 30 minutes, 28 seconds question of integration we should have these sorted over the next couple of quarters. 30:35 30 minutes, 35 seconds Got it. Got it. So that's helpful. You know traditionally we have been a 20% margin plus company and I don't see that changing in near future. 30:46 30 minutes, 46 seconds Got it. Fair enough. And just trying to understand that on the growth front you know X of acquisition if we just look at organic growth for this quarter in 30:55 30 minutes, 55 seconds dollar terms what would have that been on a Y basis if that would could be quantifiable? 31:04 31 minutes, 4 seconds X of uh acquisitions or growth for this quarter would have been about 3%. 31:12 31 minutes, 12 seconds In dollar terms that would be on a Y basis. 31:17 31 minutes, 17 seconds No, on a Q basis on a Y uh on a one second on a Y bas on a Y basis about 2% in constant currency and 3% in dollar terms. 31:29 31 minutes, 29 seconds Got it. Got it. And just the last question regarding our tech and telecom vertical has seen a sharp drop quarteron 31:38 31 minutes, 38 seconds quarter in terms of growth. So is there something specific? Is there a ramp down with some customer because we were seeing a good good run up in growth in 31:46 31 minutes, 46 seconds that quarter for the in that vertical for the past four five quarters. 31:51 31 minutes, 51 seconds Yeah, like I pointed out one of our clients uh given the uncertaintity and the fact that their fiscal year end 31:59 31 minutes, 59 seconds coincides with ours uh pulled back uh uh temporarily but materially the uh budget 32:07 32 minutes, 7 seconds uh allocated towards L & D. Uh we think that uh uh from a long-term perspective 32:13 32 minutes, 13 seconds uh uh this is not uh a reflection of reduced overall spend but they needed to 32:20 32 minutes, 20 seconds pull back uh the expense towards training uh this past quarter. 32:28 32 minutes, 28 seconds Got it. Got it. And just trying to understand directionally the acquisitions that we've made. You know historically the 32:35 32 minutes, 35 seconds St. Charles business didn't pan out like we wanted to. So just trying to understand what gives us the confidence that these acquisitions two years down 32:44 32 minutes, 44 seconds the line, three years down the line is going to, you know, grow at the same 20% kind of pace that we initially intended the business to grow at. 32:53 32 minutes, 53 seconds So first of all, I wanted to mention that the St. Charles acquisition has actually worked out quite well for us. 33:00 33 minutes uh we've been able to establish our consulting practice uh which enables us to uh be more consultative and advisory 33:09 33 minutes, 9 seconds provide advisory services to our clients. Uh we also have been able to create a significant vertical and professional services uh vertical. 33:20 33 minutes, 20 seconds uh as far as market volatility is concerned the events of the last 3 years 33:27 33 minutes, 27 seconds have been unprecedented and these this uh volatility will probably continue over the last uh over the next uh few 33:36 33 minutes, 36 seconds quarters that I don't think anyone can do a hell of a lot about but uh overall 33:43 33 minutes, 43 seconds uh St. charge joining NIT has been a good thing and we're very satisfied with that 33:53 33 minutes, 53 seconds and you may just say a word about MST and the new breakthroughs you have. 33:57 33 minutes, 57 seconds Yeah, I mean like I pointed out um while uh MST uh uh and through MST uh 34:05 34 minutes, 5 seconds penetration in the dark region uh we made the acquisition uh sometime in July and we are already starting to see 34:14 34 minutes, 14 seconds addition of new logos as well as logo expansion and cross-ell opportunities. 34:19 34 minutes, 19 seconds Uh likewise uh as I pointed out we saw a significant expansion in a top 20 pharma 34:27 34 minutes, 27 seconds client uh uh with sweet rush. So I do expect uh uh the amount of time and 34:34 34 minutes, 34 seconds diligence we do uh uh for uh these in acquisitions uh will come in uh and make us more successful. 34:46 34 minutes, 46 seconds Got it. Got it. Thank you sir. That's from my side. Thank you. Thank you. Thank you. 34:51 34 minutes, 51 seconds We'll take a next question from the line of Rahul Jen from Dalat Capital. Please go ahead. 34:59 34 minutes, 59 seconds Hello. Uh thanks for the opportunity. Uh just wanted to have one clarification this high singledigit growth that we guided uh is this uh on organic basis? 35:11 35 minutes, 11 seconds If yes, can you clarify what the overall growth guidance is? 35:18 35 minutes, 18 seconds This is overall growth type. 35:23 35 minutes, 23 seconds Okay. So high single digit includes the sweet rush. 35:32 35 minutes, 32 seconds Yeah. Okay. 35:35 35 minutes, 35 seconds So, so the other way the question should be then what is the implied organic growth in this assumption? 35:52 35 minutes, 52 seconds marginal look at this point of time whatever numbers we are talking about they are at 36:01 36 minutes, 1 second best our best judgment and can swing wildly given the uncertainty in the market. I want to remind you that you 36:09 36 minutes, 9 seconds only pointed out that uh in the quarters when everything is suited up nowadays 36:17 36 minutes, 17 seconds there are changes which are taking place. Talked about our technology client who suddenly 36:23 36 minutes, 23 seconds pulled back his his expenses. Uh this is very it's beginning to happen quite 36:30 36 minutes, 30 seconds often. So we have a very good order intake. We have a very good contract intake. Uh we have very strong clientele. 36:40 36 minutes, 40 seconds We have a uh uh net revenue retention which is very very significant. I think 36:48 36 minutes, 48 seconds that is what the confidence is coming from. Uh how this year will pan out. I think this is our conservative basis 36:57 36 minutes, 57 seconds estimate. We will have to see and guide you better quarter on quarter. Coming 37:03 37 minutes, 3 seconds quarters uh double digit is looking fairly significant and and uh and achievable. Would that be right? Coming quarters year on year double digit grow. 37:17 37 minutes, 17 seconds Ide single digit but close to Yeah. 37:29 37 minutes, 29 seconds Yeah. Okay. Uh uh Okay. 37:34 37 minutes, 34 seconds uh so I mean u I understand uh where you're coming from but you know some of these data points when we highlight that 37:42 37 minutes, 42 seconds our X of Rico growth is so high and this visibility and everything um I think uh 37:50 37 minutes, 50 seconds if if it is if you could reconsider at a different point of time a more wider band of guidance to probably explain uh 38:00 38 minutes what could be the possible outcomes because this uh number if I include uh sweet rush probably reflects a significant deceleration. 38:11 38 minutes, 11 seconds So uh it does not matches with the confidence generally that we are talking in our commentary. 38:21 38 minutes, 21 seconds You may want to respond to that. I what he's talking about he's talking about in the coming quarter the growth that you 38:30 38 minutes, 30 seconds are seeking or you are guiding it and compare that with how 38:37 38 minutes, 37 seconds if you add sweet rush sweet rush is still in wrapup state so uh you can just 38:44 38 minutes, 44 seconds explain without sweet rush all life is yeah like like I pointed out uh there is 38:53 38 minutes, 53 seconds uh significant volatility. So it's hard to be definitive about our guidance. We think that our guidance will be in the 39:02 39 minutes, 2 seconds high uh high singledigit range from an overall perspective. 39:11 39 minutes, 11 seconds Okay. Uh let me ask in a different way. 39:14 39 minutes, 14 seconds uh I mean I think we mentioned about our confluence 26 uh happening and another 39:20 39 minutes, 20 seconds event around the client advisory board uh generally what sense uh you're getting from it I understand this 39:28 39 minutes, 28 seconds happened in Feb and world has changed after that so uh in general from confluence 26 or uh any other 39:36 39 minutes, 36 seconds conversation how you think the thought process are uh evolving with this macro inputs that we 39:46 39 minutes, 46 seconds So uh like I pointed out there is uncertainty in the market. Uh uh we were not expecting the pullback that we saw 39:54 39 minutes, 54 seconds in a couple of large clients till early February or actually till midFebruary. 40:00 40 minutes Uh so uh but it happened so it's hard to tell uh where things might settle. In 40:08 40 minutes, 8 seconds our conversations with our clients, they seem very confident in our abilities. They are open to trying out new things. 40:15 40 minutes, 15 seconds They are being pushed to take cost out uh given the uncertaintity that their own businesses are seeing. There is uh 40:24 40 minutes, 24 seconds there is a cost layering because of uncertaintity in their in our clients 40:30 40 minutes, 30 seconds overall business. So uh uh there is caution on uh discretionary spend. How long will that caution last? 40:41 40 minutes, 41 seconds It's hard to tell. Uh but at this time given the uncertainty there is a cautious approach and therefore we've 40:49 40 minutes, 49 seconds been very conservative in uh giving an outlook. 40:55 40 minutes, 55 seconds Sure. Sure. Uh just last one from my side. uh if you could uh share what was 41:01 41 minutes, 1 second the uh visibility or MTS client edition that has come from sweet or have we not included that in our operating metrics yet? 41:13 41 minutes, 13 seconds We've included a conservative estimate of visibility uh from sweet rush. 41:21 41 minutes, 21 seconds Okay. So the current number uh have those uh inclusion as well. 41:28 41 minutes, 28 seconds Yes, sure. Sure. Thank you. Uh that's it from my side and I'll fall back in the queue. 41:36 41 minutes, 36 seconds Thank you. 41:39 41 minutes, 39 seconds Next question is from the line of Kunal Tokas from Fair Value Capital. Please go ahead. Hello. Am I audible? 41:47 41 minutes, 47 seconds Yes, Kunal. Please go ahead. 41:49 41 minutes, 49 seconds Okay. Okay. Thank you, sir. Um my first question is um right now the environment 41:56 41 minutes, 56 seconds as you have been saying constantly for the last few earnings call as well is very uncertain and uh people are still 42:06 42 minutes, 6 seconds finding new uh use cases new ways to use AI. So my question is that when AI the 42:14 42 minutes, 14 seconds technology becomes more widespread and its users have become established maybe saying in a few years uh do you think 42:23 42 minutes, 23 seconds this technology will reduce or will it widen the gap between uh uh between you and your competitors 42:32 42 minutes, 32 seconds between the competitors in the MTA space. 42:37 42 minutes, 37 seconds So uh as I pointed out uh in my earlier comments, our uh AI enabled revenue has 42:44 42 minutes, 44 seconds gone up quarteron quarter. It was at about 11% in the previous quarter and now it's uh more than 13%. We are seeing 42:53 42 minutes, 53 seconds uh more adoption of AI enabled services with our clients specifically as they 43:01 43 minutes, 1 second create value for our clients. Our clients are quite discerning and they don't want AI enabled solutions for the 43:09 43 minutes, 9 seconds heck of it. They want AI enabled solutions that will move the needle on performance. We think that our 43:17 43 minutes, 17 seconds investments in AI uh both in terms of people as well as buildout of technology will enable us to 43:26 43 minutes, 26 seconds create distance between ourselves and our competitors. 43:32 43 minutes, 32 seconds Uh in what ways would you say the uh the variables that mattered the competitive advantage part mattered 43:41 43 minutes, 41 seconds before AI? Uh in what ways has that changed? Uh I mean what variables mattered before the onset of AI and what 43:50 43 minutes, 50 seconds variables do you think will matter more now that AI is here in from the client uh perspective when they want to select 43:58 43 minutes, 58 seconds a a vendor the the biggest variable uh that will start changing is the movement from 44:07 44 minutes, 7 seconds training to capability building and performance improvement. I think that's the the most significant variable that's 44:15 44 minutes, 15 seconds likely to change. In the past, most measurement of L &D was focused on how 44:22 44 minutes, 22 seconds much training can you build and how much can you deliver. I think as we move forward, the measurement would be on how 44:30 44 minutes, 30 seconds much can you improve capability, how much can you improve performance. uh that's going to become the measure and I 44:38 44 minutes, 38 seconds think uh AI enables us to create that connection between L&D investment and performance uh improvement. 44:48 44 minutes, 48 seconds Okay sir. And can you also please talk about the uh if I understood it correctly the proprietary simulation 44:56 44 minutes, 56 seconds engine that you are uh building. 45:01 45 minutes, 1 second So uh the best way to uh learn something is to practice it and as you are practicing uh if you make mistakes to 45:11 45 minutes, 11 seconds get feedback or coaching on so uh I don't know if you played a sport but to learn how to play a sport well you often 45:20 45 minutes, 20 seconds have to practice a lot and it helps if you have a coach who could give you feedback on what you're doing right 45:27 45 minutes, 27 seconds versus what you're doing wrong and if you're doing something wrong how to fix I think uh the the investments in 45:34 45 minutes, 34 seconds simulation engine as well as coaching enable us to allow a student to practice 45:42 45 minutes, 42 seconds in a safe environment and then with coaching enable them to get feedback on what worked and what didn't work and 45:51 45 minutes, 51 seconds then have them try it over and over again till they get it right. 45:56 45 minutes, 56 seconds So will gas be sold as a separate product or will guest be incorporated into the whole spectrum of services that you provide? 46:07 46 minutes, 7 seconds Uh we think our clients would like both the product and the services because there is while there is uh value in just 46:17 46 minutes, 17 seconds buying the product but uh for a simulation to be really good. Not only do you need a good simulation builder 46:25 46 minutes, 25 seconds but also expert uh learning and development professionals who could understand the situation that a client 46:32 46 minutes, 32 seconds is in and build the right simulations for them. 46:37 46 minutes, 37 seconds So we think that it will be both uh the simulation builder as well as uh because the clients are looking for performance 46:45 46 minutes, 45 seconds improvement and for that they would need the right simulations which would need the right simulation builder but also the expertise to build them. 46:57 46 minutes, 57 seconds Okay sir. And the last uh question uh will be uh uh uh uh given the nature 47:07 47 minutes, 7 seconds of the technology how revolutionary it is uh uh it is it it can become uh 47:14 47 minutes, 14 seconds people will have different views about the future uh of this technology. So is there anything that your competitors are 47:21 47 minutes, 21 seconds doing that you have cons consciously stayed away from that you studied but you thought that it was not the right 47:28 47 minutes, 28 seconds path to pursue in terms of AI in terms of uh your future strategy. 47:36 47 minutes, 36 seconds I actually could not quite get your question. Can you say it again? 47:41 47 minutes, 41 seconds Doing but decided not to do. Oh, what our competitors are doing but we've decided not to do. 47:49 47 minutes, 49 seconds That was a Yes, please. Go ahead. Go ahead. 47:57 47 minutes, 57 seconds Um I wanted to emphasize some conscious decision that your competitors thinks is the right thing to do for the future and 48:05 48 minutes, 5 seconds an important thing but that you thought was maybe not the wise decision and you took a different path. 48:15 48 minutes, 15 seconds Uh some choices that we have evaluated in great depth have been should we just 48:22 48 minutes, 22 seconds become a platform company or should we retain our service ethos while investing 48:29 48 minutes, 29 seconds in platforms and uh we we deliberated a lot on that choice and we decided to 48:36 48 minutes, 36 seconds stay the course on being a service company but deeply enabled with investments in platforms and 48:44 48 minutes, 44 seconds technologies so that our services can be built on top of technologies uh to to uh ensure an efficient buildout. 48:59 48 minutes, 59 seconds All right sir. Got it. Thank you very much and have a good day. Thank you. 49:06 49 minutes, 6 seconds We'll take our next question from the line of Shankaran Arayan from I thought PMS. Please go ahead. 49:14 49 minutes, 14 seconds Good evening sir. Am I audible? Yes, please go ahead. Yes. Yes sir. 49:20 49 minutes, 20 seconds Thanks for the opportunity. My first question is on our uh contract tenure. 49:24 49 minutes, 24 seconds Earlier it used to be in the range of 3 to 5 years. So because of a do you see any shrinkage in the contract tenure? 49:34 49 minutes, 34 seconds We haven't seen any uh shrinkage in terms of contract tenurs. Okay. 49:41 49 minutes, 41 seconds We don't expect that to happen either. 49:45 49 minutes, 45 seconds Got it. Got it. Regarding our uh content creation business, what kind of productivity are you seeing uh because 49:52 49 minutes, 52 seconds of the implementation of AI and whether if the productivity is being reinvested back to you or it is taken back by your brand? 50:04 50 minutes, 4 seconds Yeah, I think what uh we are starting to see is a departure from creating content the way content was created in the past. 50:15 50 minutes, 15 seconds So our clients who are starting to uh take advantage of AI are starting to 50:23 50 minutes, 23 seconds look at investments in content which are more immersive and more simulation oriented. Uh that's where we are seeing 50:32 50 minutes, 32 seconds the move. uh we are not seeing clients looking for creating the same thing for 50:38 50 minutes, 38 seconds less. Yeah, some of them uh for uh lower level training or compliance related 50:44 50 minutes, 44 seconds training would sometime look at uh build out of uh larger amount of content for 50:51 50 minutes, 51 seconds the same cost. But more of our clients are looking at improving uh the immersive nature of content uh uh as 51:00 51 minutes compared to creating uh uh training that actually does not provide great outcomes. 51:08 51 minutes, 8 seconds So does that mean the legacy portion or the legacy uh mix of content creation is 51:15 51 minutes, 15 seconds uh being slowly uh moving away towards uh immersive learning. So that uh the 51:22 51 minutes, 22 seconds price stability that we are seeing in the content creation business will it remain same in the upcoming years? 51:30 51 minutes, 30 seconds I think uh uh it'll progressively move towards immersive content. It'll take time. It's not a switch that we control 51:38 51 minutes, 38 seconds but uh it'll uh uh uh content creation will move towards immersive content 51:46 51 minutes, 46 seconds creation and simulation uh buildouts and deployment. 51:52 51 minutes, 52 seconds Got it. And finally uh recently one of our uh large tech client who is into infrastructure management they have 52:00 52 minutes planned to announce layoffs for this uh financial year. So have we accounted that into our uh revenue growth estimates in FI27? 52:13 52 minutes, 13 seconds Um um uh these dynamics are very interesting. So while there is headown movement going on across a very large 52:22 52 minutes, 22 seconds number of our clients, what they are also realizing is that the skills needed 52:29 52 minutes, 29 seconds for their employees are changing at a very rapid pace. So while there is change in number of employees that exist 52:39 52 minutes, 39 seconds at an enterprise there is very significant increase in the need for deeper skills different skills. So uh 52:49 52 minutes, 49 seconds there is this movement where there may be fewer employees but their need for training is increasing. So we are seeing that balancing scenario. 52:59 52 minutes, 59 seconds So uh the reduction in revenue in the top uh segment tech and telecom it is not tied to the layoffs or uh the AI 53:08 53 minutes, 8 seconds productivity is just the budget cuts by the client. 53:14 53 minutes, 14 seconds Yes. Uh it's a temporary budget pullback. I'll give you an example. uh you know uh uh I'm assuming you know because the reason I'm the reason why 53:23 53 minutes, 23 seconds I'm asking this uh question is because L & D budgets it's attained number of headcount into uh investment per 53:31 53 minutes, 31 seconds headcount. So that budget is getting yeah that's exactly what I wanted to answer. Yeah. Yeah. 53:42 53 minutes, 42 seconds That's exactly what I wanted to address. 53:44 53 minutes, 44 seconds So uh while you're right on an average across many years the thesis that you said is right but when there is 53:53 53 minutes, 53 seconds significant change so for example I'm sure you're familiar with IT services companies I'm sure you see headlines 54:01 54 minutes, 1 second that the role of programmers is changing dramatically also see that uh programmers should gain 60 70% in terms 54:10 54 minutes, 10 seconds of efficiency and won't need programming skills over time. But I think what you would 54:16 54 minutes, 16 seconds also start seeing is that uh new roles such as forward deployed engineers are 54:23 54 minutes, 23 seconds starting to become very important for the growth of most IT services companies. Now till recently that role 54:31 54 minutes, 31 seconds did not exist but as enterprise and enterprises have to build out these new 54:38 54 minutes, 38 seconds roles and these are roles which you can't hire for these roles will then start uh being 54:47 54 minutes, 47 seconds created by employees who are getting displaced through training and that starts to become our opportunity. 54:58 54 minutes, 58 seconds Got it sir. Thank you Mr. 55:01 55 minutes, 1 second Thank you. Next question is from the line of Ganesh Shetty an individual investor. Please go ahead. 55:09 55 minutes, 9 seconds So congratulations for good setup number in tough micro. Uh I just have one question regarding our business model. 55:17 55 minutes, 17 seconds Previously we used to get severely impacted by macro dynamic but over a period of time what I'm observing is we 55:25 55 minutes, 25 seconds are quite resilient with our business model and our revenue visibility maintaining our uh margin uh trajectory. 55:34 55 minutes, 34 seconds So do you do you think that there is a sharp shift in the mind uh thought process of clients and they are ready to 55:42 55 minutes, 42 seconds spend on L&D outsourcing in spite of discretionary spending uh uh limits. Can you please explain that? 55:55 55 minutes, 55 seconds First of all thank you for your kind words. Uh yes, we have been resilient uh uh over these uh past several years uh 56:03 56 minutes, 3 seconds uh across uh COVID and then uh more recently uh the wars and the tariffs and 56:10 56 minutes, 10 seconds the other uh macroeconomic uncertaintities that we see. Uh also uh over these years uh we've been able to 56:18 56 minutes, 18 seconds take advantage of technology and innovation to improve the resilience as well as growth in our business. Um to 56:28 56 minutes, 28 seconds answer your question on how you see uh outsourcing going forward. See uh uh as 56:37 56 minutes, 37 seconds I mentioned in our discussions earlier, we have been fortunate to have a strong balance sheet that allows us to invest 56:46 56 minutes, 46 seconds in new technologies such as AI. Uh and we've been doing that over the last four years. Uh most L & D departments 56:56 56 minutes, 56 seconds neither have the wherewithal nor the skills to invest in innovation as we have been able to. And consequently, 57:05 57 minutes, 5 seconds as they are called upon to deliver against new expectations, they are likely to feel overwhelmed. And I think 57:13 57 minutes, 13 seconds that creates opportunity for them to work with an expert who has been investing in the latest technologies who 57:20 57 minutes, 20 seconds has been able to build a strong point of view who has been able to show evidence of uh uh performance improvement with 57:30 57 minutes, 30 seconds the application of new technologies. So I think as we look ahead these investments will enable us to uh create 57:40 57 minutes, 40 seconds distinctive uh distinctiveness and enable higher levels of outsourcing to us. 57:47 57 minutes, 47 seconds That's all from me sir. Thank you very much and all the best. Thank you. 57:54 57 minutes, 54 seconds We'll take our next question from the line of Dishant Chan from Koser Capital. Please go ahead. 58:01 58 minutes, 1 second Hello. Thanks for the opportunity. So just one question on the forex uh accounting. How do we accounting the 58:08 58 minutes, 8 seconds forex gain or forex uh forex loss in our financials? 58:15 58 minutes, 15 seconds Hi this is Sanjay. Uh so we basically have a uh you know policy where there 58:21 58 minutes, 21 seconds are uh uh hedges which are uh taken and uh these are basically taken for you 58:28 58 minutes, 28 seconds know transfer pricing which we have in India from the overseas entities. 58:34 58 minutes, 34 seconds Uh the overall whatever are the matured hedges they are accounted for on a 58:41 58 minutes, 41 seconds quarterly basis. uh whatever are near-term not yet disting will go through the uh currency translation reserve. 58:50 58 minutes, 50 seconds So that's uh one thing. The second is second is the balances which are coming through those balances if they are outstanding if there is a change in that 58:58 58 minutes, 58 seconds that gets reflected again in the uh quarterly results as at the end of the period change which is the true up of the currency rates. 59:08 59 minutes, 8 seconds Okay. So sir in spite of the fact that the currency Iana USD has been rising but we have been showing forex losses 59:17 59 minutes, 17 seconds for the last like few months. So any specific reason? 59:22 59 minutes, 22 seconds Yeah. So essentially they are rising but what happens is that there is a uh the hedges are taken in standalone they are 59:30 59 minutes, 30 seconds not taken overseas. The overall impact which is there on the unhedged is higher than the hedges. 59:39 59 minutes, 39 seconds effect. So there is a part of it is hedged, part of it is not hedged. Based on the hedge ratio, the overall impact in the near-term or rather the longer 59:48 59 minutes, 48 seconds term hedges which are 12 months is higher than the quarterly change. So if you look at the depreciation which would 59:55 59 minutes, 55 seconds have happened over a year where the hedges would have been taken is anywhere between 5 to 19%. In the quarter it is 1:00:02 1 hour, 2 seconds about 2% or so. So the gain which you would have got in the 2% change is limited but on the hedges it would have 1:00:11 1 hour, 11 seconds been a higher uh loss or MTM uh change. So the net effect is negative. 1:00:20 1 hour, 20 seconds If I take a just to give an example, if I take a hedge when it was say 88 and I got a premium of two rupees, I got 90 rupees. 1:00:29 1 hour, 29 seconds That 95 if today it is 95 or 96 that six rupees actually will be a loss on the hedge, right? 1:00:36 1 hour, 36 seconds Correct. 1:00:38 1 hour, 38 seconds So basically now last quarter I would have already Yeah. Sure. Yeah. Go ahead. 1:00:44 1 hour, 44 seconds Yeah. So basically uh when when this contract will get ended you will see a reversal of this process right? 1:00:53 1 hour, 53 seconds No we will we will fractify the whole thing when the contract ends basically we fractify because we receive the uh cash against you. 1:01:04 1 hour, 1 minute, 4 seconds Exactly. So basically you will see the receive uh the difference of cash uh with uh to you right? 1:01:12 1 hour, 1 minute, 12 seconds No that it will not come to me if I have sold it for 90 and today it is 95 the five would be lost 1:01:20 1 hour, 1 minute, 20 seconds but if I have done it for which is going to mature 9 months later that will carry that that I can recover. 1:01:30 1 hour, 1 minute, 30 seconds Okay. And so the last one would be on like uh do we keep the currency benefit with with us or should we pass on to the customers? 1:01:40 1 hour, 1 minute, 40 seconds I'm sorry I couldn't get your uh question. Yeah. 1:01:42 1 hour, 1 minute, 42 seconds Uh do we see the currency benefit with us or should we pass on to the customers? 1:01:49 1 hour, 1 minute, 49 seconds It varies from various customers where there could be fixed price. There can be a little bit of a you know range in which plus minus if it is there then it 1:01:58 1 hour, 1 minute, 58 seconds is passed on but normally we do not have this change which is there in the uh contracts to be passed on to the customer. So basically we keep it. 1:02:09 1 hour, 2 minutes, 9 seconds Yeah. Okay sir. Uh thank you. Thank you. 1:02:17 1 hour, 2 minutes, 17 seconds Next question is from I have a feeling may I just comment Sanjay. The currency 1:02:24 1 hour, 2 minutes, 24 seconds loss recorded in R is in many ways notion also. 1:02:29 1 hour, 2 minutes, 29 seconds Yeah that it's a mark to market issue. mark to market on certain portions and realized only further realized both 1:02:37 1 hour, 2 minutes, 37 seconds this so this is technical accounting I don't know whether you should surmise from there I I'll tell you the policy I'm 1:02:46 1 hour, 2 minutes, 46 seconds saying it from uh a board capital allocation and and uh and foreign currency management what is our thinking 1:02:54 1 hour, 2 minutes, 54 seconds our thinking is we think we understand our business the best and when we quote to our customer we know what realization 1:03:02 1 hour, 3 minutes, 2 seconds we want from that customer. We would like to protect that. Now if after that 1:03:09 1 hour, 3 minutes, 9 seconds there is volatility, if the volatility is going to hurt us, then we at least want our profit protected because I 1:03:17 1 hour, 3 minutes, 17 seconds think we understand our business well. I don't think we are experts on forex and neither do we claim to be. So and 1:03:24 1 hour, 3 minutes, 24 seconds neither I I I'm not sure whether uh there are other other companies who are in this business who also have such capability. 1:03:33 1 hour, 3 minutes, 33 seconds So general principle followed is protect your costs on the basis of the forex that you see in front of you and on that 1:03:42 1 hour, 3 minutes, 42 seconds basis if you make better very good if you don't make better at least you are protected that's the approach which we take now because of that there will be 1:03:51 1 hour, 3 minutes, 51 seconds technical corrections from time to time last thing I want to say is our our 1:03:58 1 hour, 3 minutes, 58 seconds customers get served across the globe our customers get served across the globe from across the globe. So it is 1:04:07 1 hour, 4 minutes, 7 seconds very difficult for anybody to go and protect forex and least of all uh in a in a learning and training contract or 1:04:15 1 hour, 4 minutes, 15 seconds services contract. I'll just pause here if it adds any more value. 1:04:24 1 hour, 4 minutes, 24 seconds We'll take the next question from the line of Lakshmi Aanal from Tonga Investments. Please go ahead. 1:04:30 1 hour, 4 minutes, 30 seconds Yeah, thank you. Uh can I just I just want to understand what is the Sorry to interrupt. Can you use your handset mode please? Your audio is not clear. 1:04:39 1 hour, 4 minutes, 39 seconds My first question is uh I'm sorry you're sounding muffled. 1:04:46 1 hour, 4 minutes, 46 seconds Uh is it better now? Uh yes a little better. Please go ahead. 1:04:50 1 hour, 4 minutes, 50 seconds Yeah. I just want to understand what is the heat of dilution one can factor in because uh as when I look at the BS 1:04:57 1 hour, 4 minutes, 57 seconds table it shows almost 1.02 02 crores of shares as in the pool. I just want to 1:05:04 1 hour, 5 minutes, 4 seconds understand that your question again we couldn't quite 1:05:11 1 hour, 5 minutes, 11 seconds understand granted. So what's the dilution 1:05:18 1 hour, 5 minutes, 18 seconds that's about 7% it will happen over a period of time if we add 1:05:26 1 hour, 5 minutes, 26 seconds No no no sorry the vesting schedule for the granted options typically we have a three-ear vesting schedule and uh four 1:05:36 1 hour, 5 minutes, 36 seconds years after which five years we have an exercise period for those grants. So uh on a on an average for 1:05:44 1 hour, 5 minutes, 44 seconds each uh tranch it could vary between uh 4 to 8 years in total. So an average of maybe you could take six years. So a 1:05:53 1 hour, 5 minutes, 53 seconds little bit I mean if they were to get all of them were to get exercised uh then it probably be about a percent each year. 1:06:04 1 hour, 6 minutes, 4 seconds Got it. Okay. Okay. And uh the next question is that what percentage of our revenues are in the cost side and what 1:06:11 1 hour, 6 minutes, 11 seconds percentage is in the revenue side and when you talk about AI related uh uh disturbance uh or opportunity which side 1:06:19 1 hour, 6 minutes, 19 seconds it is it is in the cost side or on the revenue side of the clients you're working with 1:06:27 1 hour, 6 minutes, 27 seconds you say cost side or revenue side of the client. What does that mean? I for so 1:06:35 1 hour, 6 minutes, 35 seconds yeah I mean let me be clear right so for certain clients I understand that we work uh on the revenue side where where 1:06:42 1 hour, 6 minutes, 42 seconds your the service which you offer is counted as a revenue for the client in certain cases you do the pure L&D schemes uh which could be the on the 1:06:51 1 hour, 6 minutes, 51 seconds cost side right so as a percentage of our revenue what's what is the uh what comes from the revenue side uh enhancement and what comes from the cost 1:06:59 1 hour, 6 minutes, 59 seconds side uh for us and where do you see AI being uh you know AI playing a role here. 1:07:08 1 hour, 7 minutes, 8 seconds So I won't off the top of my head I won't be able to tell you how much of our revenue 1:07:14 1 hour, 7 minutes, 14 seconds assists our clients on to gain revenue versus on the cost side though I would say majority of our revenue would be on 1:07:23 1 hour, 7 minutes, 23 seconds the cost side as far as our clients are concerned. Uh and what was your follow-up question on 1:07:30 1 hour, 7 minutes, 30 seconds that? Now in terms of uh AI, you said AI can be an opportunity. At the same time, you said that AI is also making people 1:07:38 1 hour, 7 minutes, 38 seconds delay their uh uh budgets or uh I just want to understand which side do 1:07:46 1 hour, 7 minutes, 46 seconds you mean whether the revenue side or the cost side where you see AI being uh um you know having an impact. 1:07:55 1 hour, 7 minutes, 55 seconds AI is affecting L&D positively. So whether we are on the revenue side of the client 1:08:02 1 hour, 8 minutes, 2 seconds or on the cost side, it really doesn't matter. Uh AI is making LND more 1:08:08 1 hour, 8 minutes, 8 seconds impactful. So as far as our clients are concerned, they are not seeing or they 1:08:16 1 hour, 8 minutes, 16 seconds are not differentiating between AI or revenue generating projects versus cost projects. uh as far as they are 1:08:25 1 hour, 8 minutes, 25 seconds concerned they're using or they're wanting to use our solutions that have that are AI enabled to improve the 1:08:32 1 hour, 8 minutes, 32 seconds effectiveness of learning and development. 1:08:38 1 hour, 8 minutes, 38 seconds And then second thing I would say is the uncertaintity that I mentioned is not induced by AI. The uncertaintity is more macroeconomic in nature. 1:08:48 1 hour, 8 minutes, 48 seconds Got it. Okay. Okay. And and what percentage of the revenues come from uh uh managed training and what percentage of comes from mandatory training? 1:09:00 1 hour, 9 minutes Say that again. Manage. Yeah. How much? And how much? 1:09:08 1 hour, 9 minutes, 8 seconds Yeah. Yes sir. So I'm asking your volume. Sorry. 1:09:15 1 hour, 9 minutes, 15 seconds I request him to use the handset mode please. Your audio is not clear. 1:09:19 1 hour, 9 minutes, 19 seconds Yeah, I'm using the handset on here. Uh I just want to understand what percentage of revenue comes from managed training where we actually manage the 1:09:27 1 hour, 9 minutes, 27 seconds entire life cycle of training and second what percentage of revenue comes from uh mandatory training. Uh and uh yeah 1:09:36 1 hour, 9 minutes, 36 seconds mandatory yeah mandatory so okay uh uh I would say about 1:09:46 1 hour, 9 minutes, 46 seconds 40 to 50% of the training that we do for clients who are who operate in the 1:09:53 1 hour, 9 minutes, 53 seconds regulatory uh businesses uh is mandatory training and uh I would say with the 1:10:01 1 hour, 10 minutes, 1 second exception of clients in technology technology and telecom. The rest of the sectors we serve tend to be regulated 1:10:08 1 hour, 10 minutes, 8 seconds sectors. So I would guess that of the total revenue about 30% or 35% would be mandatory training. 1:10:20 1 hour, 10 minutes, 20 seconds Okay. And and where do you and revenue coming from managed training where you actually manage the entire cycle of training end to end? 1:10:31 1 hour, 10 minutes, 31 seconds I mean we uh all of our business is uh training outsourcing. 1:10:38 1 hour, 10 minutes, 38 seconds So I'm not able to discern what you're looking for. I'm looking at something like you you deliver a point solution uh let's say uh you know a new employee 1:10:47 1 hour, 10 minutes, 47 seconds joins so you actually provide the course content versus uh where you actually run the program you actually evaluate and 1:10:54 1 hour, 10 minutes, 54 seconds you actually uh point solutions as a percentage of revenue negligible. 1:11:03 1 hour, 11 minutes, 3 seconds Okay. Okay. Okay. Okay. and and and when you talk to your top 20 clients uh you mentioned that they are actually uh 1:11:12 1 hour, 11 minutes, 12 seconds tightening their purses. So uh can you just uh double click and just help me understand what what do you actually hear from your top 20 clients? I mean 1:11:21 1 hour, 11 minutes, 21 seconds why are they pulling back uh uh their uh spends uh any any specific uh uh you 1:11:29 1 hour, 11 minutes, 29 seconds know use case would be helpful to understand what's actually going on particularly among your top 20 clients. 1:11:37 1 hour, 11 minutes, 37 seconds Yeah, like I pointed out at the top of the call, uh uh they see uncertaintity 1:11:43 1 hour, 11 minutes, 43 seconds in the market and so it's hard for them to get budgets for discretionary spend 1:11:50 1 hour, 11 minutes, 50 seconds and that's what's causing them to uh uh uh I mean they're just going through higher levels of scrutiny for 1:11:58 1 hour, 11 minutes, 58 seconds discretionary spend given the market uncertainty. 1:12:04 1 hour, 12 minutes, 4 seconds Got it. And and there's another thing which I understand is that sir some trainings are are goes under the CHRO which is a chief HR officer and some 1:12:12 1 hour, 12 minutes, 12 seconds amount of training is directly uh handled by the CFO's office right so and uh in in our case you know just as a 1:12:20 1 hour, 12 minutes, 20 seconds thumb rule or just overall what percentage of our revenues would actually come under the CRO and what would be under the CFO uh uh CFO's 1:12:30 1 hour, 12 minutes, 30 seconds decision I don't think we too much if anything under the CFO I would say uh close to 1:12:41 1 hour, 12 minutes, 41 seconds 100% uh of a revenue which is internal in nature uh would be with the CHRO 1:12:52 1 hour, 12 minutes, 52 seconds thank you sir thank you ladies and gentlemen we request you to restrict to one question at a time please next question is from the line of 1:13:01 1 hour, 13 minutes, 1 second Mina Narani from Hatway Investments please go ahead Yeah, thank you for the opportunity. I 1:13:08 1 hour, 13 minutes, 8 seconds just have a few question. One is when you look at your uh you are saying you have added 21 new annot clients during 1:13:16 1 hour, 13 minutes, 16 seconds the year. You have expanded scope with four clients. You have acquired MST and Sweetish this year and AI is driving 15% 1:13:24 1 hour, 13 minutes, 24 seconds of your revenue almost 13% of your revenue and rupee is depreciating forget this year but generally 2 to 3% 1:13:32 1 hour, 13 minutes, 32 seconds depreciation in rupee with all this your growth of 9% or even if I take the highest of higher single digit how does 1:13:40 1 hour, 13 minutes, 40 seconds it match I mean I can't understand your 21 new clients would deliver more business this year it being annot 1:13:50 1 hour, 13 minutes, 50 seconds Or are you losing out some more business which is compensated by this? I couldn't actually quite understand. 1:13:59 1 hour, 13 minutes, 59 seconds No. So let me explain it. 1:14:01 1 hour, 14 minutes, 1 second What he's saying is AI contributed 12% of your revenue. 1:14:06 1 hour, 14 minutes, 6 seconds 13% 13%. You have added 21 clients. 1:14:12 1 hour, 14 minutes, 12 seconds You are doing everything right. Then why do you have only a single digit growth? Is that in did I say it in simple words? 1:14:20 1 hour, 14 minutes, 20 seconds Yes, absolutely. Can you add the 2% depreciation in Indian rupee also? 1:14:26 1 hour, 14 minutes, 26 seconds Oh, uh in constant currency terms just so that we are measuring we're taking out the depreciation of rupee out of the 1:14:35 1 hour, 14 minutes, 35 seconds picture. In constant currency terms, a business grew about 11% on a yearon-year basis. 1:14:42 1 hour, 14 minutes, 42 seconds Second, uh all clients that we acquired did not start in Jan in in April of 2025. 1:14:51 1 hour, 14 minutes, 51 seconds They have been acquired uh over the period of one year. So it would not be right to assume that each one ramped up 1:15:00 1 hour, 15 minutes to their maximum potential the day they started. Over a period of a year or so, 1:15:06 1 hour, 15 minutes, 6 seconds they typically ramp up. So in a typical year most of our growth would come from 1:15:14 1 hour, 15 minutes, 14 seconds growth in existing clients because new clients take time to grow. Uh in uh 1:15:22 1 hour, 15 minutes, 22 seconds this specific year we've seen growth because MST and Sweet Rush became part of NIT 1:15:29 1 hour, 15 minutes, 29 seconds uh uh and uh we've seen existing client growth. So you were to look at organic 1:15:36 1 hour, 15 minutes, 36 seconds growth, we did about 7% growth for the year organically in constant currency and a large percentage of that growth. 1:15:46 1 hour, 15 minutes, 46 seconds So uh our existing clients didund I mean 4% we had 4% growth. So out of the 7% 4% 1:15:54 1 hour, 15 minutes, 54 seconds growth came from existing clients, 3% came from new clients and approximately 1:16:01 1 hour, 16 minutes, 1 second 3 or 4% came from inorganic activity which included sweet rush and MST. Last 1:16:09 1 hour, 16 minutes, 9 seconds year you had recall which helped that impact is the one which is actually making you wonder. 1:16:15 1 hour, 16 minutes, 15 seconds Yeah. also uh you know several million dollars of revenue uh from repo did not come in uh this year. 1:16:24 1 hour, 16 minutes, 24 seconds So uh if you were to net out uh the the real estate contract then uh the growth 1:16:33 1 hour, 16 minutes, 33 seconds in constant currency terms would for organic business would be about 14%. 1:16:40 1 hour, 16 minutes, 40 seconds I'm I'm looking at the F27 guidance that you so maybe request that you return to the question. No, no, no, no, no. I'm just following up on the same question 1:16:47 1 hour, 16 minutes, 47 seconds because my question was for F27 guidance of 9%. Or rather the higher single digit with all these new clients expanded 1:16:56 1 hour, 16 minutes, 56 seconds scope with four clients and acquisitions which you have made last year wouldn't your sales be higher in the F27 than just 9%. That's what my question was. 1:17:06 1 hour, 17 minutes, 6 seconds It would be it would be higher if there was no mac no impact of macro macroeconomics on our clients. 1:17:15 1 hour, 17 minutes, 15 seconds Yeah, you're right. If the same client keeps spending the same amount of money in the coming year, you're absolutely right. Uh uh we would be seeing 1:17:24 1 hour, 17 minutes, 24 seconds significant growth because the 21 clients that we acquired this year uh would produce uh more revenues. Uh that 1:17:33 1 hour, 17 minutes, 33 seconds is not rocket science. That is straightforward. So, so there would be wallet share loss. 1:17:39 1 hour, 17 minutes, 39 seconds No, not wallet share loss. Actually, it will be wallet share gain. But the total pi would go down like I pointed out earlier. 1:17:48 1 hour, 17 minutes, 48 seconds Uh an organization would cut down on their discretionary spend. So if they were spending $100, they might spend 1:17:56 1 hour, 17 minutes, 56 seconds only 80. Now out of that 80, a wallet share may actually increase rather than reduce. 1:18:05 1 hour, 18 minutes, 5 seconds But only 80. Sorry, say that again. I'm saying with US economy supposed to be growing better and your clients are more based in US. 1:18:16 1 hour, 18 minutes, 16 seconds No, I mean if you want to joke on this call, we can engage in joking and talking about macroeconomics. But uh I think you are as aware of macroeconomics as I am. 1:18:29 1 hour, 18 minutes, 29 seconds Maybe more. Fine. Okay. Thank you. Thank you very much. 1:18:41 1 hour, 18 minutes, 41 seconds Uh how are we doing? 1:18:42 1 hour, 18 minutes, 42 seconds We are over. We have four more questions. We can take one from each. Okay. Uh thank you. 1:18:49 1 hour, 18 minutes, 49 seconds Let's take one quick question from each. 1:18:51 1 hour, 18 minutes, 51 seconds I just wanted to say we will be in Mumbai like customary at the end of 1:18:57 1 hour, 18 minutes, 57 seconds quarter on Friday and those of you coming Friday and those of you who would 1:19:05 1 hour, 19 minutes, 5 seconds uh have some follow-up things we please be in touch with Capil and Capil will be very happy to organize a meeting call or 1:19:13 1 hour, 19 minutes, 13 seconds whatever whatever is required and at this point of time since you've taken the trouble to be with us we'll take one question each if that's okay with everyone. Thank you. 1:19:25 1 hour, 19 minutes, 25 seconds Thank you. The next question is from the line of Bharat Gulati from Talalan Rocher. Please go ahead. 1:19:32 1 hour, 19 minutes, 32 seconds Thank you for the followup. Just a very quick question sir. Uh you had earlier reiterated in the start of the call to a analyst question that you know you're 1:19:40 1 hour, 19 minutes, 40 seconds seeing the net retention rate being strong with customers. would there be a quantifiable number you can put to that uh that you know what has been our 1:19:49 1 hour, 19 minutes, 49 seconds historical NRR and what do we see it going into FI27 and you know just some kind of I think with the questions that 1:19:56 1 hour, 19 minutes, 56 seconds you've gotten today I think we're just trying to understand you know what is uh the customer outlook for FI27 and how do 1:20:04 1 hour, 20 minutes, 4 seconds we you know see existing customers grow because a high singledigit guidance is somewhat proven to be a flattish to even 1:20:13 1 hour, 20 minutes, 13 seconds a degrowth scenario you in our organic business. So just trying to get a sense of that. 1:20:19 1 hour, 20 minutes, 19 seconds So uh like I pointed out if I had the crystal ball I would give you all the details available but unfortunately I 1:20:26 1 hour, 20 minutes, 26 seconds don't have one. Uh your guess on m macroeconomics is quite like my guess and at this time we believe that we 1:20:35 1 hour, 20 minutes, 35 seconds should uh on a conservative basis we should be able to do high singledigit growth for the year. 1:20:44 1 hour, 20 minutes, 44 seconds And so just in terms of NRR is there some number you can uh you know some directional income. 1:20:51 1 hour, 20 minutes, 51 seconds Got it. Got it. And historically any we can ask the same question five different ways but uh uh like I said uh 1:20:59 1 hour, 20 minutes, 59 seconds that we think that on a conservative basis we should be able to achieve a n uh high singledigit growth. 1:21:08 1 hour, 21 minutes, 8 seconds Fair. Fair enough. 1:21:10 1 hour, 21 minutes, 10 seconds I I think what we are talking about uh just uh I I'll just add to what Sapn said 1:21:17 1 hour, 21 minutes, 17 seconds while we have mentioned high singledigit growth for the year I I'm not sure whether you can predict that for any any 1:21:26 1 hour, 21 minutes, 26 seconds business anywhere in the world at this time the question is we are putting our best foot forward based on our understanding and some assumptions that 1:21:34 1 hour, 21 minutes, 34 seconds we are making. I think it'll get titrated as we go forward. That's one thing which we can say. So I think every 1:21:42 1 hour, 21 minutes, 42 seconds quarter we would be able to talk to you better color on how the rest of the year is likely to look like. 1:21:51 1 hour, 21 minutes, 51 seconds Got it. Got just asked another question. 1:21:53 1 hour, 21 minutes, 53 seconds Sorry to interrupt Mr. Kadi. Maybe I'll in the queue. Thank you. 1:21:57 1 hour, 21 minutes, 57 seconds Thank you. The next question is from the line of Goram Nagam from Tunga Investments. Please go ahead. 1:22:03 1 hour, 22 minutes, 3 seconds Yeah. So just one question. uh on this uh the difference between the Q4 performance the one we encourage versus 1:22:11 1 hour, 22 minutes, 11 seconds what we delivered uh can you I mean you mentioned that this was driven by uh I just want to understand was it a single 1:22:18 1 hour, 22 minutes, 18 seconds client and very specific case or was it broad-based discrimination and uh can you provide some color on where exactly 1:22:26 1 hour, 22 minutes, 26 seconds this discrimination happened were it part of the managed services part of the business or where discretionary part of the business and uh it did lose share to 1:22:35 1 hour, 22 minutes, 35 seconds somebody or was there a case of insourcing? If you can provide the color on this budget versus actual for Q4 or for our organic business that would be great. 1:22:45 1 hour, 22 minutes, 45 seconds So it was a couple of clients and significant clients and it wasn't loss of share to anyone else. They just 1:22:54 1 hour, 22 minutes, 54 seconds decided like I pointed out to pull back the budgets which means they did not spend the planned amount of money uh 1:23:02 1 hour, 23 minutes, 2 seconds what we expected them to spend at the beginning of the quarter. 1:23:09 1 hour, 23 minutes, 9 seconds And we think that in Q1 they'll bounce back. 1:23:14 1 hour, 23 minutes, 14 seconds Thank you. The next question is from the line of Praya Jane from Banyan Tree Advisor Private Limited. Please go ahead. 1:23:21 1 hour, 23 minutes, 21 seconds Um yeah hi thank you for the opportunity. U so I'll just you know continue with the previous participants 1:23:28 1 hour, 23 minutes, 28 seconds question. Um when we look at uh say your technology u and telecom se segment your 1:23:35 1 hour, 23 minutes, 35 seconds industrial segment your management consulting and professional segment all three have degrone on a Qoq basis. So 1:23:44 1 hour, 23 minutes, 44 seconds just wanted to understand you know uh and get more color on uh are you facing uh deflationary pressure from other 1:23:51 1 hour, 23 minutes, 51 seconds clients as well apart from the two big clients that you spoke about? Um yeah and just one small question can you provide a Qoq organic revenue growth. 1:24:06 1 hour, 24 minutes, 6 seconds So let me try to answer your first question first. 1:24:10 1 hour, 24 minutes, 10 seconds The fact that uh one segment goes down is also because another segment went up. 1:24:19 1 hour, 24 minutes, 19 seconds The sum of all is 100. So one of the segments went up significantly which 1:24:26 1 hour, 24 minutes, 26 seconds resulted into a number of other segments shrinking because the sum of the total is 100. I would say one of our like I 1:24:35 1 hour, 24 minutes, 35 seconds pointed out one of our techn uh uh couple couple of our clients had material but transient 1:24:43 1 hour, 24 minutes, 43 seconds pullbacks in their budget which should be restored in Q1. 1:24:51 1 hour, 24 minutes, 51 seconds Okay. So I I am looking at an absolute basis like when we just use those percentages and multiply it with our 1:24:59 1 hour, 24 minutes, 59 seconds overall revenue um and then when we compare the absolute numbers we still see degrowth in these three segments that I talked about and hence the 1:25:08 1 hour, 25 minutes, 8 seconds question I get that but uh that's why I said a couple of our clients had material 1:25:15 1 hour, 25 minutes, 15 seconds pullbacks because of our budgets. What I did want to point out however was that we did have significant growth in uh 1:25:24 1 hour, 25 minutes, 24 seconds some other segments as well and uh the nature of the budget pullback is temporary. 1:25:32 1 hour, 25 minutes, 32 seconds Sure. And can you just share? 1:25:38 1 hour, 25 minutes, 38 seconds So your question was on uh Q growth water organic which is in reported terms 1:25:45 1 hour, 25 minutes, 45 seconds minus 1% Q organic and then constant currency it was 1:25:54 1 hour, 25 minutes, 54 seconds minus uh constant currency - 4% - 4% organic yeah 1:26:02 1 hour, 26 minutes, 2 seconds okay thank you thank you ladies and gentlemen we'll be taking the 1:26:09 1 hour, 26 minutes, 9 seconds last question that is on the line of Shredda Agraal from Asian market securities please go ahead 1:26:19 1 hour, 26 minutes, 19 seconds Yeah. Hi. Um just one clarification on the guidance for next quarter. So you're indicating doubledigit Y growth but what 1:26:26 1 hour, 26 minutes, 26 seconds is the implied sequential growth given the fact that you're talking of bounce back in spending in the top plans in which you saw pressure in this quarter. 1:26:40 1 hour, 26 minutes, 40 seconds Y like I pointed out uh we are likely to do high singledigit Yi growth for the 1:26:48 1 hour, 26 minutes, 48 seconds year and in Q1 we have a an opportunity to do double digit growth. 1:26:56 1 hour, 26 minutes, 56 seconds What she saying is what does it imply as you just watch that off 1:27:05 1 hour, 27 minutes, 5 seconds Sha you know us well I think you should uh keep a track of us given the seasonality and now the multiple uh 1:27:14 1 hour, 27 minutes, 14 seconds businesses that have got added uh to keep a track of us on a yearon-year basis will be the best way to keep 1:27:21 1 hour, 27 minutes, 21 seconds so the reason it's a simple mathematical it's a mathematical number digit. We'll just give it to you. 1:27:30 1 hour, 27 minutes, 30 seconds No single digit. No single digit. No single digit. Okay. Thank you. 1:27:38 1 hour, 27 minutes, 38 seconds Thank you. 1:27:40 1 hour, 27 minutes, 40 seconds Ladies and gentlemen, that was the last question. I now hand the conference over to the management for the closing comments. 1:27:49 1 hour, 27 minutes, 49 seconds Well, I I think we've had a pretty involved discussion. So first of all I want to thank each one of you for having 1:27:56 1 hour, 27 minutes, 56 seconds joined the call. I know it's a very precious time of yours and in this very volatile very interesting and uh uh very 1:28:06 1 hour, 28 minutes, 6 seconds uh energizing time at the same time sapping because of the multiple stresses at work. So thank you for giving us the 1:28:14 1 hour, 28 minutes, 14 seconds time and bigger thanks for asking us the uh very important questions many of which tell us to keep track of a few 1:28:24 1 hour, 28 minutes, 24 seconds numbers that we normally in in our normal course of business day then I don't know whether anyone of you noticed that there are some new metrices that we 1:28:32 1 hour, 28 minutes, 32 seconds have started sharing net revenue retention being one of them and I think going forward you will see that as a as 1:28:40 1 hour, 28 minutes, 40 seconds a common thread and this all we learned from the questions that you asked and uh uh we'll be in touch with you on any 1:28:49 1 hour, 28 minutes, 49 seconds other clarifications that you would need as well as I mentioned before in Friday on Friday we'll be in Mumbai uh to start 1:28:58 1 hour, 28 minutes, 58 seconds with and of course even after that for uh in coming months and feel free to uh 1:29:06 1 hour, 29 minutes, 6 seconds set up a meeting or a call or any detail that you would like to have from us. Thank you once again for joining us. 1:29:12 1 hour, 29 minutes, 12 seconds Truly appreciate your time. Thank you. 1:29:20 1 hour, 29 minutes, 20 seconds Thank you ladies and gentlemen. On behalf of NIT Learning Systems Limited, that concludes this conference call. We thank you for 1:29:28 1 hour, 29 minutes, 28 seconds joining us and you may now disconnect your lines. Thank you.