Onward Technologies Limited — Q4 FY26

Onward Technologies Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=WsRzSjEhOJw Published: 8 days ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the Onward Technology Limited Q4 FY26 earning conference call. As a 0:11 11 seconds reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask question after the presentation 0:19 19 seconds concludes. Should you need assistant during the conference call, please signal an operator by pressing star then 0:25 25 seconds zero on a touchtone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. 0:33 33 seconds Pratik Jaka. Thank you and over to you sir. 0:39 39 seconds Good day to all of you. Welcome to the Q4 FY26 earnings call of Onward Technologies Limited. The results and 0:48 48 seconds presentation have already been mailed to you and you can also view them on our website www.onwardgroup.com. 0:58 58 seconds to take us through the results today and to answer your questions. We have with us Mr. Jiger Mahita, managing director 1:05 1 minute, 5 seconds of Onward Technologies Limited. He will start the call with business update and financial performance for the quarter 1:13 1 minute, 13 seconds which will be then followed by Q&A session. As usual, I would like to remind you that anything that is said on 1:20 1 minute, 20 seconds this call that reflects any outlook for the future or which can be construed as a forward-looking statement must be 1:28 1 minute, 28 seconds viewed in conjunction with the risks and uncertainties that we face. These risks 1:34 1 minute, 34 seconds and uncertainties are included but not limited to what we have mentioned in prospectors filed with SEBI and 1:42 1 minute, 42 seconds subsequent annual reports that you can find in our website. Having said that, I'll now hand over the call to Mr. 1:50 1 minute, 50 seconds Over to you Thank you. Good evening everyone and thank you again for joining us. 2:02 2 minutes, 2 seconds It's good to be back and share our performance for the fourth quarter and uh the full year uh for FI2526. 2:11 2 minutes, 11 seconds FI26 has been uh as you must have seen from the press release and the numbers really earlier today post the board meeting. FI26 has been the strongest 2:20 2 minutes, 20 seconds year uh in our history. We delivered the curve revenue um of 550 odd crores and 2:27 2 minutes, 27 seconds which is a YI growth of 10.5% and a record AITA of 71.9 crores. The gross margin improvings to our highest in our history to 13.2%. 2:37 2 minutes, 37 seconds In absolute terms, EITA grew 60.9% and PAD grew 72.3% by OY reflecting the strength of the execution and the 2:45 2 minutes, 45 seconds quality of our earnings. Again, the performance is driven by consistent delivery like I've been sharing for the last several quarters. Um, better 2:53 2 minutes, 53 seconds operating leverage, focusing on very few direct clients and discipline, cost control and steady progress across 3:02 3 minutes, 2 seconds our 3x3 vertical strategy. This has also translated to strong cash flows, operating cash flows with net cash now 3:09 3 minutes, 9 seconds increasing to 127.3 crores, the highest in our history. Again, our balance sheet strength continues to give us confidence 3:17 3 minutes, 17 seconds and the flexibility as we continue to invest for higher revenue growth while continuously improving our margins. Over 3:24 3 minutes, 24 seconds the last four years um since the pandemic and especially since uh the new strategy has been has evolved focusing on the US and Europe market, we have 3:33 3 minutes, 33 seconds delivered a revenue gagger of 15.3% and a kagger of 35.4% 4% uh uh in this 3:41 3 minutes, 41 seconds period while keeping headcount largely stable uh close to 2500 employees. Our final headcount end of March 31st 2026 3:49 3 minutes, 49 seconds was 2485 employees who are based between India, Europe and uh North America which is 3:57 3 minutes, 57 seconds predominantly US and Canada for us. This is a strong indicator of the operating leverage and productivity level growth that we are seeing including our revenue 4:05 4 minutes, 5 seconds employee per growing uh consistently over the next four years and we believe we'll consistently grow even uh higher 4:13 4 minutes, 13 seconds uh close to industry benchmark in the next several years. In Q4 our revenue uh continued momentum we again rose the 4:21 4 minutes, 21 seconds highest at 139 cr delivering a 6.9% bowy growth while EIA margins were at 11.2%. 4:29 4 minutes, 29 seconds 2%. Our growth continues to be anchored in deep and long-term client relationships. Predominantly companies headquartered in North America and 4:37 4 minutes, 37 seconds Europe and um our top 25 customers continue to grow uh at a steady pace 4:43 4 minutes, 43 seconds which is now at 88% of our revenues reflecting strong concentration around strategic clients um and increasing 4:51 4 minutes, 51 seconds relevance within our engineering and R&D programs. We're still very very the best part about our business model and where we are today. uh starting the new 4:59 4 minutes, 59 seconds financial year FYI 2627 is we still have a very small percentage of the client's R&D budget or outsourcing software 5:06 5 minutes, 6 seconds outsourcing budget and uh which gives us a huge confidence for the next three to five years as we look forward and the growth runway that we have with our 5:14 5 minutes, 14 seconds existing clients. Another very interesting uh development over the last couple of quarters is through our existing clients we got uh six amazing 5:22 5 minutes, 22 seconds client references as well. So in the last 12 months we added net six new clients which are still at a very nent stage but where we are signed the master 5:30 5 minutes, 30 seconds services agreement uh and now started bidding for projects. We have started billing for them as well and I think 5:36 5 minutes, 36 seconds that is a very exciting stage uh for a young company like us which shows the confidence our existing large clients 5:44 5 minutes, 44 seconds have in us when they obviously give you references of other similar large companies u especially in the industrial 5:50 5 minutes, 50 seconds vertical uh that we um are focused on in terms of our vertical horizontal 5:58 5 minutes, 58 seconds strategy continues to remain consistent as we have shared earlier it's 3x3 verticals and three horizontal s IHM being the largest and the other two 6:07 6 minutes, 7 seconds where we are investing and we hope to continue to make a lot of momentum over the next uh several quarters. 6:14 6 minutes, 14 seconds In parallel, we have continued to invest um in strengthening our our horizontals especially our digital and AI capabilities supported by dedicated 6:23 6 minutes, 23 seconds budgets. We also believe we we also are gearing up for setting up our AI digital AI lab in Chennai in the next couple of 6:30 6 minutes, 30 seconds uh months. uh we'd love to welcome all of you guys there to showcase some of the amazing work that our teams and delivery teams are doing for our clients. Uh if I look forward several 6:40 6 minutes, 40 seconds years from now, I think onward will have a substantial portion of revenues coming from uh uh digital and AI projects and I we believe that will give us both huge 6:49 6 minutes, 49 seconds revenue growth as well and margin expansion um consistently and a very sustainable model. 6:57 6 minutes, 57 seconds Simplification has also actually helped us uh in a very very big way. Um I've shared that last quarter. Um we are now 7:05 7 minutes, 5 seconds able to execute very very very focused uh trainings, very focused learning or organizational developments, very 7:12 7 minutes, 12 seconds focused people based initiatives which has helped reduce our tition to its lowest. Um this uh which is below 15% uh 7:20 7 minutes, 20 seconds again a record for us. We at 14.85% for last financial year and we continue to see a lot of room for imp for 7:27 7 minutes, 27 seconds improvement and employee engagements and improving customer satisfaction which will keep improving this percentage as we move forward over the next uh in FI 7:36 7 minutes, 36 seconds 2627 and in the future as well. looking at the overall perspective and the uh and looking at the overall amazing performance of the year and the the 7:45 7 minutes, 45 seconds bright future that we believe we have uh with what we have seen so far in the client's budgets. Um we the board has looked at the capital allocation budget 7:53 7 minutes, 53 seconds as well and increase the dividend uh recommended to increase the dividend to rupees 88 8 per share. This will be 11 consecutive year of uh dividend and this 8:02 8 minutes, 2 seconds eight rupees per share will be the highest that the board has recommended which is uh shows the commitment that we have to 8:10 8 minutes, 10 seconds return back uh to the shareholders. As we look forward um we are increasingly confident about the next phase of our growth as well. Um we have finalized our 8:19 8 minutes, 19 seconds road map covering both revenue and EITA which I've shared before. We would like we believe we have everything in front 8:26 8 minutes, 26 seconds of us today to execute to deliver double digit revenue growth and uh double digit uh either and our newly formed global 8:35 8 minutes, 35 seconds GLT or global leadership team that we are setting has recently set up uh comprising of uh business leaders and corporate functional leaders will drive the day-to-day operations and execution. 8:45 8 minutes, 45 seconds While the external environment remains dynamic, the demand outlook for digital and engineering services, especially new initiatives on AI projects um continues 8:55 8 minutes, 55 seconds to be very positive with the right client, stronger leadership, clear depth and a more focused business model. We remain comfortable reiterating again our 9:03 9 minutes, 3 seconds guidance for sustainable sustained double digit revenue and return. Overall uh as a summary, FI26 was a year of strong delivery and structural progress. 9:13 9 minutes, 13 seconds uh as we move F5.7 we are focusing on deepening our role as a trusted digital engineering partner uh we continues to strengthen our teams in US and Europe um 9:22 9 minutes, 22 seconds and we have uh we are very excited in terms of what we are seeing uh forward with our existing client engagements 9:29 9 minutes, 29 seconds with that I'll hand it over back to uh the operator for questions thank you again thank you sir we'll now begin the 9:37 9 minutes, 37 seconds question and answer session anyone who wishes to ask question may press star and one on They are touched on telephone. If you wish to remove 9:45 9 minutes, 45 seconds yourself from the question queue, you may press star and two. 9:50 9 minutes, 50 seconds Participants are requested to use handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assemble. 10:03 10 minutes, 3 seconds The first question is from the line of Buram Shetti Sur from Buram Financial. Please go ahead. 10:14 10 minutes, 14 seconds Sir uh good evening sir all of you sir uh you are uh told the business model 10:22 10 minutes, 22 seconds and your growth is uh you can present uh good goods but uh stock market side 10:31 10 minutes, 31 seconds price will be continue decrease by generally uh investor side I'm uh 10:40 10 minutes, 40 seconds asking I'm for many years I am the shareholder in Ang um continue uh very 10:48 10 minutes, 48 seconds results will be good but price will be every quarter will be decreased uh 10:53 10 minutes, 53 seconds prices any aware of your stock stock price 11:00 11 minutes sir I know little bit English you can try to understand hello no I appreciate hi I appreciate the 11:08 11 minutes, 8 seconds question uh it's something we are working towards While we don't control the stock market and what the reactions are, we want to 11:16 11 minutes, 16 seconds make sure that as onward technologies management team, we at least articulate our story well. We share all the information transparently and uh we are 11:26 11 minutes, 26 seconds extremely positive as I said last four years we have grown both revenue and uh ITA kagger and I think next 3 to four 11:33 11 minutes, 33 seconds years is going to be even more exciting but on the IR side something we have to do on a much better job and that's the management team including myself is 11:41 11 minutes, 41 seconds working on we hope to show you improvement very soon sir actually anthropic cloud uh uh tools 11:51 11 minutes, 51 seconds Android AI developments any affect the company's future business this is the uh 11:58 11 minutes, 58 seconds totally industry problem can explain that 12:04 12 minutes, 4 seconds anthropic cloud affect the armor region it can little bit no it does not it does not affect us it 12:12 12 minutes, 12 seconds affects uh it does not affect engineering companies not yet but if it does in the next few quarters we'll definitely share more information with 12:19 12 minutes, 19 seconds you the impact at today with what has come out is more for BPO and IT companies again. So to reiterate onward is 12:26 12 minutes, 26 seconds engineering services company not an IT IT company. 12:30 12 minutes, 30 seconds Uh and actually anthropic cloud product onward is product company also anthropic 12:37 12 minutes, 37 seconds cloud product companies any effect product technologies 12:44 12 minutes, 44 seconds again just to clarify on technology engineering services company we don't do any product development we don't do we don't sell products in the market we are 12:52 12 minutes, 52 seconds a pure play services company focused on US and Europe clients so onward and to 13:01 13 minutes, 1 second disturb the product companies also sir in 19 I'm sorry to interrupt Mr. Ram seti uh 13:07 13 minutes, 7 seconds please the question. Okay sir please sir at all sir please 13:14 13 minutes, 14 seconds anthropic cloud uh disturb the product companies please I would not I would I would not know we 13:24 13 minutes, 24 seconds are on technologies is not a product company it doesn't affect us uh yet as I said we 13:31 13 minutes, 31 seconds will definitely share with you and all our investors if we see any impact from anthropic cloud andor from other AI uh 13:40 13 minutes, 40 seconds platforms or tools in the world but currently so far we've not seen any impact on us as on a services business on the engineering services business. 13:51 13 minutes, 51 seconds May I request you to rejoin the queue please? Thank you. The next question is from the line of Maduri from counter security investment. Please go ahead. 14:02 14 minutes, 2 seconds Sir, so taking from the previous speaker's uh question. S so I definitely appreciate that you have increased the 14:10 14 minutes, 10 seconds dividend and the uh recent growth is also pretty encouraging. So but then if you see our stock price 21 years back in 14:19 14 minutes, 19 seconds 2005 the stock was at 120 rupees and today it's at 240 rupees. So basically shareholders have not really made uh any 14:28 14 minutes, 28 seconds wealth. So, so but this is opportunity because now we have over 125 K of net cash and our market cap is around 550 K. 14:37 14 minutes, 37 seconds So, which means that almost a quarter uh or a fifth of our market cap we have in cash. So, so why aren't we doing a big 14:46 14 minutes, 46 seconds share buyback so that so that the equity base can reduce and whatever growth comes in future will get divided on a 14:53 14 minutes, 53 seconds smaller equity base. So basically the earning per share will increased disproportionately 15:00 15 minutes and uh recently in the recent budget the taxation on the share buyback has also become uh pretty attractive uh since the 15:09 15 minutes, 9 seconds promoter shareholding is in corporate structure then only 22% taxation is there and and if the promoters choose 15:16 15 minutes, 16 seconds not to participate in the uh barbback then the shareholding of the promoters can increase. So, so any thoughts on that? 15:29 15 minutes, 29 seconds Thank you um for the suggestion, recommendation. Um it's something the board has been actively considering and 15:37 15 minutes, 37 seconds definitely the price is very attractive both for um the company and for all the investors. But yes, it's an exciting 15:45 15 minutes, 45 seconds time and we hope to make the right decision which will create a lot of value for all our shareholders. 15:52 15 minutes, 52 seconds Right sir and uh sir again uh sir now that uh so especially for layman investors like us who don't have a 16:00 16 minutes technological background if you could just uh give some uh comments on reassuring us that what exactly I mean 16:08 16 minutes, 8 seconds are we user of AI or AI can substitute our business and maybe the products claude etc that are present in the 16:17 16 minutes, 17 seconds market right now maybe they are not impacting us but the direction that things are moving uh what makes you 16:25 16 minutes, 25 seconds think that we will be net beneficiaries instead of the business going redundant. 16:36 16 minutes, 36 seconds So great great question. Uh this is something that we are actively always monitoring. Um today it is AI. Tomorrow 16:44 16 minutes, 44 seconds it could be some other technology disruption. So far I can share with you from our customer perspective. AI 16:53 16 minutes, 53 seconds uh especially the new version of cloud and some of the latest version of chart GPT. We have not seen any disruption that our customers have brought to us. 17:02 17 minutes, 2 seconds We have not seen our pipeline decrease and neither have we seen any impact where a customer is actually asking us to use AI tools. 17:11 17 minutes, 11 seconds Right? So to address your point more directly, we are not use we are not using AI tools today to deliver client-based projects 17:18 17 minutes, 18 seconds which are billable. We are not so far customers have not brought to us or asked us to use any particular AI tool. 17:27 17 minutes, 27 seconds But what we are doing so I hope I addressed the first qu first point. So, so far it's affecting what we understand from the same news that you are reading 17:36 17 minutes, 36 seconds IT companies and BPO companies. It's not affecting engineering companies because engineering companies is not about hiring freshers and just doing some basic application maintenance work. 17:46 17 minutes, 46 seconds Right? We are doing product development work. We're doing robotics work. We're doing model based development. It's a very high-end work which needs deep domain experience. It needs industry 17:54 17 minutes, 54 seconds experience. It needs factory experience, shop floor experience, right? So you cannot just overnight replace that. We all hope it's coming and I think we will 18:02 18 minutes, 2 seconds create a lot of value with it once it starts coming. Now on the on the technology side, what we are doing is we have bought a lot of licenses where our 18:11 18 minutes, 11 seconds delivery teams and R&D teams are studying how we can create value for our customers using the AI tools where we 18:18 18 minutes, 18 seconds can bring down the number of hours or it can improve the productivity and that R&D is going on as we speak. We hope to 18:25 18 minutes, 25 seconds go to the market in the next several quarters with more and more value added solution. When I say market is again to our existing customers which I think 18:34 18 minutes, 34 seconds will create a lot more value and eventually much higher revenue for us in the future. 18:40 18 minutes, 40 seconds So how to clarify where we are as an organization as an engineering company today. 18:47 18 minutes, 47 seconds Understood sir. So, so since uh you made the point that we are not any run-of-the-mill uh IT company and so so 18:55 18 minutes, 55 seconds if you could just give us some uh peers uh on the listed side which are uh relatively comparable like to like from 19:04 19 minutes, 4 seconds us since you made the point that the TCSS and infoses of the world are not exactly the same business that we have. 19:16 19 minutes, 16 seconds So I didn't say IT companies are run-of-the-mill. IT companies are amazing companies with amazing success stories, the best in India. I think they put India on the global map. So they're 19:24 19 minutes, 24 seconds the best companies out there and I think they'll all do fabulously well with the resources and the amazing teams they have running India businesses. Coming 19:32 19 minutes, 32 seconds back to Onward Technologies and who are the like other companies in our space that have done a fabulous job. Um obviously you guys know uh L&T 19:41 19 minutes, 41 seconds technologies, you guys know uh KPIT, you guys know scient multi-billion dollar companies created 19:49 19 minutes, 49 seconds amazing engineering services uh companies which have done amazing work for their clients. The best part about us and all of them is we all don't 19:56 19 minutes, 56 seconds compete with the same clients. We all have a niche clients that we focus on and we are growing with them. Right? So we are engineering services company. 20:04 20 minutes, 4 seconds recent company Tata Technologies uh which is Puna based which is owned by Tata Motors. These are all engineering services companies. 20:13 20 minutes, 13 seconds Understood sir. And so lastly sir what kind of commission sir the management is yeah thank you. 20:24 20 minutes, 24 seconds The next question is from the line of Pradhan from Maximal Capital. Please go ahead. 20:30 20 minutes, 30 seconds Yeah. Hi sir. I hope I am audible. So my first question is uh with regards to the transportation the auto segment. So if 20:38 20 minutes, 38 seconds uh the calculations are correct uh then it is kind of you know degrone uh uh in this year. So if you can give some uh 20:45 20 minutes, 45 seconds commentary on that segment and uh when are you expecting the turnaround? 20:55 20 minutes, 55 seconds Yes. Hi. So yes, our transportation vertical which comprises of both automotive and rail um we we had a revenue or we had a deep growth of 1%. 21:06 21 minutes, 6 seconds This was due to two main factors. First factor was we exited which if you remember we had shared with you if you look at our earnings call about a year 21:13 21 minutes, 13 seconds year and a half back uh where we exited all the tier ones and tier 2s across 21:19 21 minutes, 19 seconds India, Europe and US. Um and so that revenue growth but we were hoping to increase the revenue from our OEM 21:27 21 minutes, 27 seconds customers enough that we'll get us to 10 20 30% revenue topline growth that did not happen at the speed that we would have liked uh for the overall slowdown 21:37 21 minutes, 37 seconds in the automotive sector and several other factors but we are seeing the momentum now we are uh continuously 21:44 21 minutes, 44 seconds working on improving the vertical growth and I think the automotive and the rail vertical have enough group for us to grow 5x to 10x from where we are right 21:53 21 minutes, 53 seconds now. It's about getting the strategy right, making sure that you're investing in the future and um we have the client engagements already. But you have to do a much better job in terms of execution. 22:03 22 minutes, 3 seconds And so most of the our most of our clients in the auto segment are uh uh US- based and EU based OEMs or you're 22:12 22 minutes, 12 seconds catering to the Indians as well. 22:17 22 minutes, 17 seconds So we as onward technologies are 100% focused only on US and Europe. So if you look at our revenues 70% comes from 22:24 22 minutes, 24 seconds North America and 30% comes from Europe right that percentage can change every quarter. I'm giving you an annual basis perspective. We have zero clients in India. 22:34 22 minutes, 34 seconds And so if that's and this is across all across all the verticals. 22:39 22 minutes, 39 seconds Right. Right. And so when the auto segment uh you know the the uh SLA is uh is fair to expect that you know the 22:47 22 minutes, 47 seconds margins improvement will be faster. I mean uh or you know that depends on the kind of projects you're doing and you know the value supporting. I mean if you 22:56 22 minutes, 56 seconds can give us some kind of you know guidance as to the margins and the across the segments specifically. 23:05 23 minutes, 5 seconds Absolutely right. Your point is very valid, right? When all the three verticals grow at a speed, let's say at 20 30 40% yearon year, the overall gross 23:13 23 minutes, 13 seconds margins, overall direct margins, operating margins will expand as well. 23:17 23 minutes, 17 seconds Right? So today we have uh one vertical growing, one vertical we're investing in, one vertical which did not do a great job. We did not we couldn't we didn't execute as well as we should 23:25 23 minutes, 25 seconds have. So the it's still at the highest of 13.2%. Which I'm still very pleased at. You know the start of the year when 23:33 23 minutes, 33 seconds we started the year we assume that we will be at 11% margins for for the financial year been a couple of good quarters Q3 will be a slowdown because 23:41 23 minutes, 41 seconds of the furlows and uh the best in world slowing down but Q3 was a record quarter for us because a lot of positive things happened and overall we balanced things 23:50 23 minutes, 50 seconds out and I think it became a 13% plus uh year for us. So very excited and pleased with that performance by the entire team. uh the day all the three quart all 23:59 23 minutes, 59 seconds the three verticals will start uh delivering as per the potential I think the margins will keep expanding and 24:06 24 minutes, 6 seconds expanding even faster from where we are today. 24:10 24 minutes, 10 seconds Got it, sir. And so any any any comment on the Q4 margins? I mean, they kind of, you know, came down. So, anything to call out there? 24:19 24 minutes, 19 seconds Uh, nothing in particular. I think it was a good quarter. As I said, for us, we're looking at an annual number. Uh, we will have some quarters where there'll be some peaks from existing 24:28 24 minutes, 28 seconds clients, some some quarters where we are investing a bit faster. Um, but overall very pleased with where we are at. So, 24:35 24 minutes, 35 seconds you will look at Onward from an annual perspective and you will see that next year as well, right? that we will we have amazing u visibility. We have a 24:44 24 minutes, 44 seconds very strong visibility for delivering much better than what we did this year on an annual basis both on topline and bottom line and we expect 24:54 24 minutes, 54 seconds that to be resulting in our cash reserves as well. 24:58 24 minutes, 58 seconds Got it sir. Okay sir. Thank you and all the best. Thank you. 25:04 25 minutes, 4 seconds Thank you. The next question is from the line of Mihul Panchawani from 40 cents. Please go ahead. 25:13 25 minutes, 13 seconds Hello sir, thank you so much for the opportunity. Uh sir, FY26 margins have expanded to 13.2. 25:22 25 minutes, 22 seconds How sustainable is this level and what are the key levers that will drive our margins in F27? 25:37 25 minutes, 37 seconds Hello. Am I audible? 25:38 25 minutes, 38 seconds From a Yes. Yes. Absolutely. So from a revenue from a gross margin perspective, so and an ebitita margin perspective, I 25:46 25 minutes, 46 seconds think it's it's uh again it was a superb year for us much better than we expected. Q2 and Q3 were super 25:53 25 minutes, 53 seconds outstanding. Um and we do believe that these numbers are sustainable and not only sustainable I think we can grow much we can do much better job as well. 26:02 26 minutes, 2 seconds There's a lot of operating leverage that we have with revenue growth coming in and as I said revenue growth from all the three verticals which we think we 26:10 26 minutes, 10 seconds going to be able to deliver this year um and the keep in mind our GNA cost and other cost usually remains the same 26:19 26 minutes, 19 seconds right because we have invested that much in automation we've invested that much in internal systems and tools so we're able to scale much faster so we do 26:28 26 minutes, 28 seconds believe there's a lot of room for improvement both in the water to cross margin and at a level. 26:35 26 minutes, 35 seconds Right. So my second question is how much is the uh current bean pipeline and what kind of visibility do you have do we 26:42 26 minutes, 42 seconds have for uh conversion in FY27 especially in my top five accounts 26:51 26 minutes, 51 seconds very positive u like and that's why we are comfortable in sharing uh we see that visibility from last one year we saw that last year as well we see that 26:59 26 minutes, 59 seconds this year and we see that the year coming the next two years going forward because when we sign agreements with our customers They're usually long-term in nature. They're not transactional. 27:09 27 minutes, 9 seconds So, we definitely see double-digit revenue opportunity across all the three verticals. And we definitely see margin 27:17 27 minutes, 17 seconds expansion with more offshore delivery, more better utilization uh and bench discipline. Um and absolutely like any 27:27 27 minutes, 27 seconds other offshore company focusing on a pyramid organization or optimization so we can deliver value to our clients. 27:35 27 minutes, 35 seconds Great sir. Sir, how much of a FY27 revenue uh can you say that it is uh already committed or in advanced stages? 27:46 27 minutes, 46 seconds Majority I don't have the exact percentage but but I mean if I if I just have to give you a number how many will come from existing clients I would say 27:54 27 minutes, 54 seconds 95 to 98% will come from existing clients as per the budget uh from the existing 75 CL live clients that we have. 28:03 28 minutes, 3 seconds Yes. And not commenting on the dean pipeline. 28:06 28 minutes, 6 seconds Okay. Great. And sir, out of our top five clients, how many have we worked for uh with them for more than a decade? 28:17 28 minutes, 17 seconds From our top five clients, um 28:25 28 minutes, 25 seconds I would like to say two or three at least 10 years if not a decade. Right. 28:33 28 minutes, 33 seconds So two or three for last 10 years and there are the bander two which have really grown has come post the pandemic. So last four to five years. 28:41 28 minutes, 41 seconds Okay. So sir uh now I am new to this uh company. So I am just trying to understand little bit more uh from 28:50 28 minutes, 50 seconds whatever commentary I've been hearing with the various uh interactions. So what is it that did we have couple of rough years over the last two uh decades 28:59 28 minutes, 59 seconds or so because you know I've heard that uh we are we are doing quite well so what was it that is uh which which has 29:07 29 minutes, 7 seconds held us back kind of not much I mean last four years has been 29:15 29 minutes, 15 seconds the best years in our history as I shared earlier our revenue tagger is 15% now and our tagger for last four years 29:22 29 minutes, 22 seconds is 35% plus. So it's been extremely positive last four years for us as an organization. 29:30 29 minutes, 30 seconds All right, sir. Okay, sir. I'll come back in the queue because I have a couple of industry level questions for uh especially the engineering services industry. So I'll come back in the queue. Thank you. 29:41 29 minutes, 41 seconds Thank you. The next question is from the line of Ranjay Popley from Bian Capital. Please go ahead. 29:50 29 minutes, 50 seconds Okay. Uh am I already? Yes sir. 29:54 29 minutes, 54 seconds Yeah. So just a few basic question. So uh how do we clock in revenue? Is it based on the hours that we put in or it's more based on the outcomes. 30:09 30 minutes, 9 seconds It's based on the number of hours that we put in. That's almost 90% plus or 88% 98 90% of our revenues. And the balance 30:18 30 minutes, 18 seconds is based on fixed price contracts which is based on uh outcome because 30:25 30 minutes, 25 seconds and that's how we able to predict that's how we able to predict our revenues much comfortably that's why we are confident in giving a visibility as well for last 30:33 30 minutes, 33 seconds year and for the next two years the introduction of AI uh where you know it is able to reduce ours so do you 30:42 30 minutes, 42 seconds think you would be pushing on some of the benefits to your clients Again I clarified earlier we are an 30:50 30 minutes, 50 seconds engineering services company so far we have not seen any impact of AI on engineering services. Please keep in mind in onward as a business or in 30:57 30 minutes, 57 seconds engineering services as a business. None of us are hiring freshers right straight from college and just putting people out there and just we billing per hours. 31:05 31 minutes, 5 seconds Majority of our engineers are 8 years 10 years 15 years 20 years. They have worked on the factory factories. They all have come from manufacturing 31:13 31 minutes, 13 seconds experience. they have deep domain experience. Uh, of course a lot of certifications. 31:20 31 minutes, 20 seconds So, so far none of there's no impact on the overall engineering business globally is what I understand at least 31:28 31 minutes, 28 seconds that's what we understand from our customers. There could have been impact in the IT business and the services business and BO business that people 31:35 31 minutes, 35 seconds talk about but so far no impact on the engineering business. Now on the second part of your question about benefit to the customer that's definitely onward 31:44 31 minutes, 44 seconds technologies is doing proactively. We have bought a lot of licenses invested last year which I shared. We hired a new CIO who's doing a fabulous job. You had 31:51 31 minutes, 51 seconds a new delivery leader who's doing a fabulous job and we are trying to create and innovate in a way that to see where 31:59 31 minutes, 59 seconds we can add more value to our customers where we can potentially bring down the number of hours uh number of hours or speed to market for the customer but I 32:07 32 minutes, 7 seconds think that's still several quarters down the line uh because it has to be tested it has to be uh validated and I think it it happens 32:15 32 minutes, 15 seconds at a global level so it's not going to be an overnight thing but we definitely see huge value going forward in the next couple of years which will have a huge 32:24 32 minutes, 24 seconds positive impact on the revenue and the gross margins of the company. 32:28 32 minutes, 28 seconds Just a basic question. So since this is a company that use IoT that is internet of things. So b so it takes all the data 32:36 32 minutes, 36 seconds from the sensors and then process it and then analyze it and gives a solution to the client. Uh am I right in 32:44 32 minutes, 44 seconds understanding this the process of what onward does? 32:52 32 minutes, 52 seconds Yeah, that's not so that's not what yes your understanding is right to certain extent right? Yes. 33:01 33 minutes, 1 second So uh then the really the question that comes up is that you know if the information is being extracted out of the sensors don't you think that you 33:10 33 minutes, 10 seconds know AI would able to process it much better of course with the help of all the industry leading CL uh people that 33:18 33 minutes, 18 seconds you have with 8 to 10 10 years of experience. So don't you think in that particular space it will reduce the billable hours? 33:27 33 minutes, 27 seconds Sure. Sure. So In in in situations like these which you are clarifying you know 33:35 33 minutes, 35 seconds the customer also is aware that this can happen so there will be no RFQ there will be no outsourcing right keep keep a different view about 33:43 33 minutes, 43 seconds onward technologies onward technologies is focused on the same customers like you spoke about one IoT project customers IoT let's say outsourcing 33:50 33 minutes, 50 seconds budget is anywhere from hund00 million to a billion dollars right so everywhere that AI can be used 33:59 33 minutes, 59 seconds or where AI benefits can be leveraged today. customers already removed that from their outsourcing budget when they started the budget this year and they'll 34:08 34 minutes, 8 seconds continue to reduce that number of hours from those projects and they will start doing that in-house or they'll start doing it directly with Microsoft or 34:15 34 minutes, 15 seconds Anthropic or whoever charged on the other side of the business where the customers actively outsourcing the 34:22 34 minutes, 22 seconds number of RFPs RFQS the demand is at an all-time high right so customers chandalizing or rechandalizing the 34:31 34 minutes, 31 seconds budget which potentially where they can leverage AI for normal tasks and moving it to more and more domain based task 34:39 34 minutes, 39 seconds and that's where onward is focusing on right so we would not even bid for those projects that you are talking about okay got it so would you say that AI 34:47 34 minutes, 47 seconds would AI brings operating leverage to you rather than you know replacing you absolutely and that's our job that's why 34:56 34 minutes, 56 seconds we have to make sure that we build the best delivery organizations best uh domain domain experts, deep domain 35:03 35 minutes, 3 seconds experts. We have a lot of people front ending across US and Europe. We have almost 125 employees now outside India. 35:10 35 minutes, 10 seconds We'll take that up to 200 to 300 in the next few years. So, it's very exciting time in what AI can do and how it can benefit our customers, how it can create 35:18 35 minutes, 18 seconds more stickiness and how we can add more value to the customers. Absolutely. Thank you. 35:25 35 minutes, 25 seconds Thank you. 35:29 35 minutes, 29 seconds Thank you. The next question is from the line of Abijit from Pset. Please go ahead. 35:36 35 minutes, 36 seconds Thanks for the opportunity. Am I audible? Yes sir. 35:40 35 minutes, 40 seconds Yeah. So uh as AI significantly compresses the time required for development and coding. So are you 35:48 35 minutes, 48 seconds seeing any renegotiation of contracts and uh has there been any such instances? 35:58 35 minutes, 58 seconds Um no I clarified earlier we are not seeing any of that so far. We are actually only seeing our customer engagements which were you know again 36:07 36 minutes, 7 seconds let me let me clarify or let me sort of reinforce what onward does. So we have several engagements pre- pandemic where we were supporting the customers for 36:15 36 minutes, 15 seconds more than 10 years. These are all customers that we used to support on the mechanical engineering side right that's the onward uh bread and butter. That's 36:22 36 minutes, 22 seconds our DNA. That's what our history is. All those customers now we more on the digital side and we're continuously doing more and more quality work for 36:30 36 minutes, 30 seconds them there. They're still in a very very nent stage but moment that expands with the customers outsourcing budget I think they all have potential to get to $10 36:38 36 minutes, 38 seconds million per year. That's why for me that number is very exciting that you mean something to the customers. 36:44 36 minutes, 44 seconds Coming back on renegotiating of contracts the new customers that we have signed since the pandemic are already on the digital side. that's on data 36:52 36 minutes, 52 seconds analytics, that's on just data engineering. Um, and we are trying to make more sense of that and see how we can build more and more capabilities 37:00 37 minutes because that's not onwards expertise for more than four five years. But the good part there is everybody all other tech companies much bigger than us as as well 37:08 37 minutes, 8 seconds the engineering companies have similar capabilities. So onward has to we have to keep investing further. We have to keep making sure we are front ending 37:16 37 minutes, 16 seconds that to our customers in US and Europe and that's where we will see a lot of leverage. So the opportunity or the 37:23 37 minutes, 23 seconds discussion of renegotiating contract does not exist. We don't have those $50 million maintenance contracts where customers are saying okay come now let's 37:31 37 minutes, 31 seconds reduce the cost or reduce the number of hours. We've not even reached that stage and that's what excites me the most. Our journey from 550 crores to let's say 37:39 37 minutes, 39 seconds next three years is going to be very exciting. 37:45 37 minutes, 45 seconds understood and you mentioned about operating leverage uh previously. So, so can we generate a higher revenue from 37:54 37 minutes, 54 seconds the same set of employees uh by leveraging the AI? 38:00 38 minutes Uh that's our hope. We have not seen that yet. For us it's constantly about uh 38:07 38 minutes, 7 seconds um we definitely spend a lot of time in the last two years in training reskilling our employees so we can move up the value chain increase the revenue 38:15 38 minutes, 15 seconds per person so if you see the revenue per person is now almost 20 22 lakhs for us it was 8 n lakhs four years ago so it's 38:22 38 minutes, 22 seconds been a beautiful journey in terms of what our HR team has done team has done our um delivery organizations have done 38:30 38 minutes, 30 seconds now we have to go to 30 40 lakhs per revenue per person and that's what we will keep investing in. Will AI help us there? That's the hope. That's the goal. 38:40 38 minutes, 40 seconds But as I've shared earlier, we have not seen it on the engineering business side yet. But we hope to see that as we keep 38:47 38 minutes, 47 seconds evolving and keep investing in this area. 38:51 38 minutes, 51 seconds Got it. And uh regarding the employee expense in uh in this quarter 24 um there was slight increase that we 38:59 38 minutes, 59 seconds have noticed and uh if we look at the last six to seven quarter it was kind of stagnant. So this increase was was it 39:07 39 minutes, 7 seconds because of the uh you know high cost hiding or any year end bonus it's um so I year and just to clarify 39:17 39 minutes, 17 seconds again it's a quarterly numbers for us 13% plusa has been is what we said we 39:25 39 minutes, 25 seconds were hoping to get 11 we are 13%. So some quarters the teams and the vertical heads might invest more. Sometimes the onboarding happens in XYZ quarter. It's 39:33 39 minutes, 33 seconds not something as we have shared consistently in the last four quarters that we are sort of micromanaging quarterly game right. We're trying to invest we're trying to grow faster like 39:41 39 minutes, 41 seconds while the revenue grew 10% I would like the revenue to grow 20 30% every year and we have we have the potential we have the clients we have the teams um we 39:51 39 minutes, 51 seconds have all the bright investments in place. It's all about making sure that we execute better. 39:56 39 minutes, 56 seconds That's the real goal, right? Um on the second part of the question on year end bonuses, we don't have year-end bonuses. 40:02 40 minutes, 2 seconds Our everything is our commission plans, our variable pay structures, our year and our bonuses are all quarterly 40:10 40 minutes, 10 seconds divided and it's strictly based on the KAS and KPIs that we have. So we don't have cyclical payouts for our employees. 40:19 40 minutes, 19 seconds Understood. That's all from my head. 40:21 40 minutes, 21 seconds Thank you and all the Thank you. 40:27 40 minutes, 27 seconds Thank you. The next question is from the line of Adita Jawad from AK Investment. Please go ahead. 40:35 40 minutes, 35 seconds Yeah, thanks for the opportunity. A great set of numbers. I mean I'm following this company for last five to six years. I we have done a good job in 40:44 40 minutes, 44 seconds transforming and focusing on couple of verticals even though we had taken a hit in the revenues and margins which I 40:53 40 minutes, 53 seconds truly understand but now going forward next 3 to five years I mean we are at a juncture where the AI is there there can 41:03 41 minutes, 3 seconds be a chance where lot of I mean businesses can get impacted but right now there is no such visible ility but I 41:12 41 minutes, 12 seconds just wanted to ask the management uh should we be aggressive in getting 41:19 41 minutes, 19 seconds more capabilities and become a AI a truly AI engineering services company or 41:26 41 minutes, 26 seconds to scale a bit more high level have some growth ambitions rather than I mean I know we are sticking to 10 to 12% of 41:34 41 minutes, 34 seconds guidance but why not acquire some of the capabilities and uh use market to get funds and 41:42 41 minutes, 42 seconds whatever is required but truly go out there and build some capabilities and build some AI engineering service in the company what is the vision uh level I 41:51 41 minutes, 51 seconds would ask you for you for if shareholders want to stay for a long run here what is that we are here for this 41:59 41 minutes, 59 seconds is my longerterm question yeah thanks no thank you for the question and 42:07 42 minutes, 7 seconds appreciate your suggestion that's exactly what we would like to do as well and I want to assure you that me and the entire GLT 42:16 42 minutes, 16 seconds and the entire leadership team as well have onward is very focused on it. This is where we spent a number of hours discussing this morning as well at the 42:23 42 minutes, 23 seconds board meeting and we are not shying away from investments. It's more about making sure we invest in the right opportunity 42:32 42 minutes, 32 seconds which is in front of us and we're doing that already. We're onboarding a lot of good people uh not to add new clients 42:39 42 minutes, 39 seconds but to go deeper into our client engagements and we are trying more and more and more uh as you have seen in our positioning or repositioning in the last 42:47 42 minutes, 47 seconds couple of quarters and years is to move from a mechanical engineering company to a digital engineering company. So digital engineering company means 42:54 42 minutes, 54 seconds exactly what you said and we want to become an AI ready company for our customers and we have to find the right people invest in the right processes and 43:02 43 minutes, 2 seconds culture so we can expand more and more towards that and right 10% is a great start because the previous year was 43:10 43 minutes, 10 seconds single low digit uh but we want to grow much faster and there's absolute uh visibility and interest for everybody 43:19 43 minutes, 19 seconds to grow faster but as a is what we have shared with you what we believe will happen but as I said we are all working towards improving that and 43:28 43 minutes, 28 seconds growing much faster so can we expect this year to clock height teams margin as well as numbers 43:35 43 minutes, 35 seconds is that the visibility we can have with the customers because lot of customers are going through lot of capexures because they are in the tailwinds so can 43:44 43 minutes, 44 seconds that benefit us this year absolutely that's what we are hoping for that's what we've seen in the month of April as of now 43:53 43 minutes, 53 seconds So we can expect this high teams margin and high teams discount revenue. 43:59 43 minutes, 59 seconds We are committing as I said what we committed a year ago. I'm just consistently going to follow that. Uh we want to underpromise and overd deliver. 44:07 44 minutes, 7 seconds We want to make sure that we deliver for you guys. We deliver for everybody. We have 2500 employees working very hard every day. So what we have shared is 44:15 44 minutes, 15 seconds double digit revenue and double digit revita. We will keep focusing on that and improving that. that as I said this 44:21 44 minutes, 21 seconds year 11% became 13% plus AITA next year we hope to make it much much better there's a clear visibility there's a clear demand as we stand today 44:31 44 minutes, 31 seconds sure thanks all the best thank you thank you the next question is from the 44:38 44 minutes, 38 seconds line of Arjun Javar an individual investor please go ahead 44:45 44 minutes, 45 seconds hi sir hello can you hear me sir Yes sir. Audible. 44:52 44 minutes, 52 seconds Uh sir uh I I want to know uh on a constant currency basis uh how much have we grown year on year because there is lot of uh 45:01 45 minutes, 1 second rupee depreciation which happened in last 6 months. 45:08 45 minutes, 8 seconds I don't have the number in front of me but please reach out to eny who our IR managers and they can share with you all the numbers 45:17 45 minutes, 17 seconds all the breakouts that because lot we must have a lot of liquidity in the uh revenue growth which uh you you are currently showing so I 45:26 45 minutes, 26 seconds think you must have some number right uh or you know you don't have any idea 45:35 45 minutes, 35 seconds Absolutely. That's why I said all the breakups that you would need are IR managers envy can share that with you. 45:42 45 minutes, 42 seconds You can email it to them and they can get back to you right away. Yeah. 45:47 45 minutes, 47 seconds And sir uh there was a uh postconference notes uh arranged by uh Aishant Capital 45:55 45 minutes, 55 seconds during March. uh I don't know some management uh team has attended that particular conference call and they have 46:02 46 minutes, 2 seconds given a guidance of 10 to 12% revenue growth for FI26 but uh in constantly when we are 46:09 46 minutes, 9 seconds attending uh the post earnings conference calls uh you people are shying away from giving any specific guidances and you are just giving the 46:18 46 minutes, 18 seconds investors with a double digit and revenue growth and uh but you are saying you are actually uh uh giving this price 46:26 46 minutes, 26 seconds sensitive every information in the uh uh other uh conferences. I just want to know uh why we are lacking transparency 46:35 46 minutes, 35 seconds because this is the prime call which are actually which is followed by all investors and you are giving uh specific growth guidance numbers only in the uh 46:43 46 minutes, 43 seconds conference calls of some other uh uh investor community. 46:52 46 minutes, 52 seconds That's not accurate. We double digit means 10% plus. So I don't believe anybody from my team would say any other 46:58 46 minutes, 58 seconds number. We've been very consistent uh throughout our IR managers. 47:05 47 minutes, 5 seconds Absolutely. So they must have extrapolated some number. We have consistently maintained double-digit revenue, double digit. We would never 47:14 47 minutes, 14 seconds share any other information neither me nor the board nor any other employer of Onboard to anybody outside any other forum. 47:23 47 minutes, 23 seconds Right. We're the most transparent company out there with the highest level of attended by your management sir. 47:30 47 minutes, 30 seconds Sure. That's why I said double digit means 10% plus. So I would not have the exact thing. But again you can if you think there's something which is out 47:37 47 minutes, 37 seconds there please say to me and our manager that uh our IR manager at we'll definitely have a look and make sure we take corrective steps. But I don't believe it is accurate. 47:58 47 minutes, 58 seconds Thank you. The next question is from the line of Madurati from Counter Cyclical Investment. Please go ahead. 48:07 48 minutes, 7 seconds So thank you for the opportunity once again. If I look at our main segment of industrial equipment and heavy machinery 48:14 48 minutes, 14 seconds between the past four years, our revenue has grown at 9% CAGR and uh there has been some rupee depreciation. So I would 48:23 48 minutes, 23 seconds expect that uh constant currency this number would be much lower and the end segment all three I think industrial 48:30 48 minutes, 30 seconds energy as well as off highways in every one uh the major players have grown or shown some kind of 48:38 48 minutes, 38 seconds uh thought on either doing predictive maintenance or new erd projects. So so where is the growth lacking for onward 48:47 48 minutes, 47 seconds because it's not reflecting in our revenue as our customers are seeing. So if you could just help us understand on that event. 48:55 48 minutes, 55 seconds Sure. You said last four years or you said last two years. 48:58 48 minutes, 58 seconds Uh last four years between FI23 and uh 26. Yes. 49:03 49 minutes, 3 seconds Sure. So all the constant currency numbers every micro detail my the Ian can share that 49:11 49 minutes, 11 seconds with you or my CFO can share that with you. on uh to answer your question more. 49:17 49 minutes, 17 seconds So give you giving you a perspective over the last four years onward technologies has gone from 250 customers to 75 customers 49:26 49 minutes, 26 seconds right so we've reduced a huge onward DNA being a 30-y old trust company is to we have an amazing team brand goodwill out 49:34 49 minutes, 34 seconds there to win customers and our teams are able to get customers uh build the confidence very easily but we 49:42 49 minutes, 42 seconds realize we are not a IT company we're not a product company we're not a services company we are engineering company and engineering company is better to be something to someone than 49:50 49 minutes, 50 seconds be some everything to everybody right it's impossible to do that because the domains are different capabilities are different product development 49:58 49 minutes, 58 seconds requirements are different skills are very different right you cannot process ourselves doing using the same let's say SAP person here and put them in some 50:06 50 minutes, 6 seconds other client other domain so we realize we have to be something to someone so in ideal perspective we should have only few customers and if you see the best 50:15 50 minutes, 15 seconds companies that I pointed out before and over the last three years as well uh in our space have all become multi-billion dollar companies by only focusing on maybe two to 10 customers. 50:26 50 minutes, 26 seconds Right? So any company more more than a billion dollar market cap up to 10 billion has two customers to 10 customers which gives them 90% or 95% of 50:34 50 minutes, 34 seconds their profits and probably 80% revenue and you guys can study these companies. 50:39 50 minutes, 39 seconds So from an onward perspective, we have followed that strategy and we have gone from 250 customers down to 75 which will 50:46 50 minutes, 46 seconds potentially will go down to 50 in the next couple of quarters as I've shared before. I think 50 is a sweet spot for a company of our size till we grow 2x 3x 50:55 50 minutes, 55 seconds 4x of where we are today and our customers that we select have to be and customers who select us have to be customers which have huge outsourcing budgets. 51:06 51 minutes, 6 seconds So while you are seeing a 15% kagger or in constant currency some other number we are seeing much much higher 51:14 51 minutes, 14 seconds internally because the exits of the clients have happened now the exit part is over last year that we shared right so there's no more exits now it's all about transitioning there'll be 51:22 51 minutes, 22 seconds continuous growth from the top clients while the tail accounts will keep playing out based on where we can win and where the customers love us so 51:30 51 minutes, 30 seconds that's the exciting stage for us u now the second point your question about Some other companies have grown much faster. That's amazing. They have built 51:38 51 minutes, 38 seconds much bigger teams or bigger budgets. I am not competing necessarily with them. 51:44 51 minutes, 44 seconds But there's definitely an opportunity for us and I think the next few years looks even better than the last three years. 51:54 51 minutes, 54 seconds Right. Sir would um I understand that our C so so based on this customer pruning strategy that we have done how 52:03 52 minutes, 3 seconds do we see our wallet share increasing with customer or how do we uh ensure that uh the customer stickiness with 52:10 52 minutes, 10 seconds onward uh becomes much more than what it earlier was because uh sir I understand the strategy but as a non uh technical 52:19 52 minutes, 19 seconds person I would like to understand where is the company heading with these few customers can Do you expect a wallet share increase with them? Uh are have we 52:28 52 minutes, 28 seconds created some capabilities because of which uh we might get more orders going forward? So just a basic idea would be very helpful. 52:39 52 minutes, 39 seconds Shon that's excellent question. Uh absolutely our customer wallet share is continuously improving. If you see our revenue and we are 250 cr revenue our 52:47 52 minutes, 47 seconds top 25 clients contributed 80% of our revenue. Today we are at 500 plus cr revenue 550 crores. our top 25 clients 52:55 52 minutes, 55 seconds contribute 88% of our revenue. If I look forward three to five years from now, I think again our top 25 clients will contribute 70 80 90% of our revenue. So 53:04 53 minutes, 4 seconds our market share is impro increasing improving our gross margins are increasing improving. That's how we've gone from lowdigit EITA to double digit 53:12 53 minutes, 12 seconds AITA this year. Uh 13% plus to be more precise. So absolutely all those numbers are in front of you for you to 53:20 53 minutes, 20 seconds understand how our wallet share is improving. We have not lost any customers in the last few years. It's always been uh progressive where now to 53:29 53 minutes, 29 seconds answer your second question, how do we add more value? How do we get more orders or get more access to more RFQS? That's a much better way to look at it. 53:37 53 minutes, 37 seconds Um if onward was a pure mechanical engineering company till about a couple of years ago. Move forward today mechanical engineering is only about 50% 53:45 53 minutes, 45 seconds out of our revenues. The balance 50% is software. And I think onward is has done a I think our team's done a decent job in investing in new capabilities on the 53:54 53 minutes, 54 seconds software side. So I think we can do much much much better. Uh and now with AI coming our way. I think it more and more 54:01 54 minutes, 1 second investments in AI if we can reduce or bring speed to market for customers products reduce their R&D budgets or 54:09 54 minutes, 9 seconds reduce the number of hours. There's so much opportunity that can evolve in the next three years. I think we all are very excited towards that and that's what will remain create the stickiness. 54:20 54 minutes, 20 seconds So investing in new capabilities, investing in new markets, investing being present with leadership teams in US and Europe uh not just being an India 54:28 54 minutes, 28 seconds based player. So making sure all the right investments happen and I think all those are behind us. We have done that very well in the last four years. Now it's all about scaling in the next three 54:37 54 minutes, 37 seconds years where all of us on this call will see a lot of value in. Right. 54:43 54 minutes, 43 seconds Um so just a final question from man sir u so what I what I understood was there is 54:50 54 minutes, 50 seconds this trend towards software defined vehicles as well as predictive maintenance uh in this heavy engineering 54:57 54 minutes, 57 seconds where uh due to uh using the same asset for a longer period of time you are more inclined towards making your tech more 55:04 55 minutes, 4 seconds efficient. So, so uh if you could help us understand does onward operate uh projects in this area or provide engineering services to the customers in 55:13 55 minutes, 13 seconds these areas or this is something that is not that is maybe a notch higher for us or uh this is where we are if you 55:22 55 minutes, 22 seconds could help us understand sorry can you please clarify that last point yes sir so I'm trying to understand the software defined vehicle and the 55:30 55 minutes, 30 seconds productive maintenance these two trends keep popping up uh for heavy equipment ment and engineering uh due to just longer replacement cycle of uh assets. 55:39 55 minutes, 39 seconds So does onward provide any services in these uh areas or this is a technical notch higher than what where we are 55:48 55 minutes, 48 seconds present currently and we would like to move towards this area or this is not a focus area for us if you could help us understand. 55:56 55 minutes, 56 seconds Excellent question again. uh so SDVs is an area which is for the automotive vertical not for the industrial um and 56:05 56 minutes, 5 seconds that's today onward technologies is not present in it's absolutely where we would like to go we are very late again we're going to play catch up 56:13 56 minutes, 13 seconds it's I think about two or three years late but we are going to play catch-up there so that's more on the embedded side and hence I'm trying to transition onward more and more straight to the 56:21 56 minutes, 21 seconds digital AI side right while we keep investing in embedded and I think embedded will contribute about between 18 to 30% of our revenues through next 56:29 56 minutes, 29 seconds couple of years. But I I would like to transition onward more and more toward the latest disruption where everybody 56:36 56 minutes, 36 seconds around us including our larger peers and larger amazing successful companies in the engineering space everybody has a level playing field right so that's 56:44 56 minutes, 44 seconds where we would like to go on preventive maintenance on some other projects we have done some we have capabilities and I think our teams are doing a good job 56:52 56 minutes, 52 seconds and I think that will keep expanding as we move forward. 57:00 57 minutes Uh got it. Uh uh and sir, what kind of uh investments we'll be doing in manpower and capex over maybe next one or two years? 57:10 57 minutes, 10 seconds So on the capex side we would be doing in the next few years close to just for existing clients and this is more for 57:17 57 minutes, 17 seconds just setting up the labs close to about uh 25 crores. We are looking for bigger opportunities to do that and uh we hope 57:25 57 minutes, 25 seconds to do a lot of uh exciting things as we move forward there. 57:30 57 minutes, 30 seconds Because we [clears throat] keep in mind you already done a huge investment in the last few years. So this is just more about strengthening. This does not include any new large deal that will 57:38 57 minutes, 38 seconds potentially win that might need more and for that we will go to the board. 57:43 57 minutes, 43 seconds Got it. Uh sir that was from Thank you so much and all the question. Thank you. 57:55 57 minutes, 55 seconds A reminder to all participants that you may press star and one to ask question. 58:09 58 minutes, 9 seconds As there are no further question from the participants, I now hand the conference over the to the management for closing comments. 58:19 58 minutes, 19 seconds Thank you so much uh everyone uh for joining today. Great questions. I hope I was able to clarify or articulate where 58:27 58 minutes, 27 seconds Onward is today. Um in quick summary, Onward is an engineering services company where 50% of our revenue comes 58:34 58 minutes, 34 seconds from mechanical engineering, 50% from the software side. We are trying to transition the company more and more towards while mechanical engineering business will continue to grow and it's 58:42 58 minutes, 42 seconds core to our success. We are investing very heavily on the software side, digital side and more and more we hope in the next couple of years the entire 58:50 58 minutes, 50 seconds company will transition towards AI. Uh we had a lot of questions today about AI and how it's affecting onward technologies today. Again to reiate or 58:59 58 minutes, 59 seconds reinforce it's not affecting onward technologies today. We are not IT services company. We are not a product company. We are not a BTO company. We 59:06 59 minutes, 6 seconds are engineering services. Right? So so far we have not seen our customers getting affected. uh in fact our customers have recorded uh the best 59:15 59 minutes, 15 seconds results and the best profits in their history. Number two, there were a lot of questions about India based customers and what we do. Um again to reinforce on 59:24 59 minutes, 24 seconds the technologies has majority or 70% of our revenues coming from North America which is US and Canada for us and 30% coming from Europe. We have no customers 59:32 59 minutes, 32 seconds or revenues coming from India. the INR billing on the technologies does is strictly based on the GCC's of these global companies or American and 59:41 59 minutes, 41 seconds European companies in India. And third, in terms of the future outlook, we definitely see very very exciting 59:48 59 minutes, 48 seconds demand. We see very positive uh demand from our customers. um where we do believe our top 25 clients 59:56 59 minutes, 56 seconds will keep growing and there'll be a lot of other clients from the other 50 customers which will surprise us and move up the value chain and grow much 1:00:03 1 hour, 3 seconds faster. Uh we have an amazing team in place. We have put a uh very strong GLT in place as well with six leaders who 1:00:11 1 hour, 11 seconds are who have taken over the day-to-day operations from me. They're learning, they're growing and I think they'll only get stronger and better every day. 1:00:18 1 hour, 18 seconds Um uh last year was tremendous and hence the board has recommended increase in dividend to 8 rupees per share. Uh and 1:00:26 1 hour, 26 seconds we hope to sustain that and grow that for you guys for everybody in the next couple of years as well. company sitting on very positive cash reserves of 127 1:00:34 1 hour, 34 seconds crores and we do believe that will keep growing as well and uh we're very excited about how the next uh one to 1:00:42 1 hour, 42 seconds three years look and uh we hope to create a lot more value for everybody on this call and the whole onward technologies ecosystem. So thank you again and have a lovely day and evening. 1:00:54 1 hour, 54 seconds On behalf of Onward Technologies Limited that concludes this conference. Thank you for joining us. You may now disconnect your lines.