Pelatro limited — Q4 FY26

Pelatro Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=S05v_862uls Published: 2 days ago

0:00 Ladies and gentlemen, good day and welcome to the Pelatro Limited Q4 FY26 earnings conference call hosted by Orin 0:08 8 seconds Connect. As a reminder, all participant lines will be on listen only mode and there will be an opportunity for you to ask questions after the presentation 0:17 17 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing stars then zero on your Touchstone phone. 0:25 25 seconds Please note that this conference is being recorded. 0:29 29 seconds I now hand the conference over to Miss Janvi Partil from ORM Connect. Thank you and over to you. 0:35 35 seconds Thank you. Good afternoon everyone and a warm welcome to all of you. I am Janvi Patil from Orim Connect representing the investor relations team of collateral 0:43 43 seconds limited. On behalf of the company, I would like to thank you all for joining us for the Q4 and FY26 earnings concord. 0:51 51 seconds Before we begin, I would like to state a brief cautionary statement. Some of the statements made during today's call may be forward-looking in nature. These 0:59 59 seconds forward-looking statements are subject to certain risks and uncertaintities that will cause actual results to differ materially from those expressed or 1:08 1 minute, 8 seconds implied. These statements are based on management's current expectations, assumptions, and information available as of now. Investors are therefore 1:17 1 minute, 17 seconds advised not to place undue reliance on these forward-looking statements when making any investment decisions. The purpose of this call is to share 1:26 1 minute, 26 seconds insights into the company's business performance and financial results under review. Now I'm pleased to introduce the 1:33 1 minute, 33 seconds member of the management team present with us today, Mr. Sudash Man, chairman and managing director, Mr. Sherat H, 1:40 1 minute, 40 seconds chief financial officer. With that I now hand over to Mr. Sash for his opening remarks. Thank you and over to you sir. 1:49 1 minute, 49 seconds Thank you. Uh with us good evening everybody. uh indeed a pleasure to host this conference and uh present to all of 1:58 1 minute, 58 seconds you and then share our results to all of you. 2:02 2 minutes, 2 seconds Uh we have already uploaded the investor presentation for FI2526 on our website and we also have shared 2:12 2 minutes, 12 seconds it with NFT. I presume all of you have received that downloaded that and have that particular deck with you. I will be 2:21 2 minutes, 21 seconds uh along with me of course is my colleague Sherat Peg day who the CFO. 2:25 2 minutes, 25 seconds The two of us will be taking you through the deck today. So we will uh call out the page number and go through the 2:32 2 minutes, 32 seconds details of uh that partic time you can follow on uh on the copy of the deck that you have. Once again 2:40 2 minutes, 40 seconds welcome to this uh investor call investor presentation. We I must say that we have had an excellent year uh in 2:49 2 minutes, 49 seconds for more reasons than one. We uh we acquired a company and we have stabilized that operation. Um FL 2:58 2 minutes, 58 seconds acquired the business of a company FL Technologies. 3:01 3 minutes, 1 second We sorry sir you're not audible 3:14 3 minutes, 14 seconds Mr. Menon. 3:17 3 minutes, 17 seconds Ladies and gentlemen, please stay connected while I check the management line. Thank you. 3:23 3 minutes, 23 seconds [music] 3:27 3 minutes, 27 seconds [music] 3:32 3 minutes, 32 seconds [music] 3:40 3 minutes, 40 seconds [music] 3:42 3 minutes, 42 seconds Ladies and gentlemen, we have Mr. Men back on the call. So, please go ahead. Are you are you able to hear me now? Yes. 3:49 3 minutes, 49 seconds Okay, good. So, I was just welcoming all of you to the investor presentation, investor meet of uh Palatro. Thank you 3:57 3 minutes, 57 seconds very much for joining. Good evening. Uh we have had an excellent year for more reasons than one. uh one reason is that uh the business that we acquired from SL 4:05 4 minutes, 5 seconds technologies has uh stabilized and done uh exactly as we expected. So it's been a uh that the acquisition in our opinion 4:13 4 minutes, 13 seconds is turning out to be quite good. We have had wonderful revenue growth, organic growth in our uh continuing business 4:21 4 minutes, 21 seconds which is the CBM division. Uh we've had ex uh you know a very very good growth. 4:26 4 minutes, 26 seconds We'll talk about that colleague will talk about that shortly. And finally our IIDA has expanded uh during the year. So 4:34 4 minutes, 34 seconds on all fronts be it the transaction that we consummated the acquisition beat the 4:40 4 minutes, 40 seconds organic growth be uh expansion of profit I mean higher profitability on all fronts we have done extremely well uh 4:49 4 minutes, 49 seconds and so that's the that's what I would like to share with you right at the very beginning. uh for those who are uh joining this uh you know pelatro 4:57 4 minutes, 57 seconds investor call for the first time who have not been part of this call uh such a call in the past if you go to slide three you will see that we've got we we 5:05 5 minutes, 5 seconds are a telecom software player with various uh software solutions which we'll come to shortly we serve about 46 5:12 5 minutes, 12 seconds telos at this point in time across 35 countries we've got uh 11 patents we're continuously increasing that we've got 5:19 5 minutes, 19 seconds about 490 plus employees at this point in If you look at the next slide, you will see 5:25 5 minutes, 25 seconds a map where uh our presence is noted. I mean the different countries. Uh so that's that's quite a busy slide. We are 5:32 5 minutes, 32 seconds in as I said 35 35 countries. So it's been it's been a very good ride for us till now in Asia and Africa uh with 5:41 5 minutes, 41 seconds respect to customer penetration and growth. 5:44 5 minutes, 44 seconds That brings me to the next slide which is business overview and after that you've got the results highlights to handle the next uh ch three slides I 5:53 5 minutes, 53 seconds will uh hand uh you know I'll hand you over to Share Heg who's a CFO who has joined me on this particular call. Over to you Shhat. 6:01 6 minutes, 1 second Thank you. Um hello all good evening and uh welcome to our town call. So uh slide number six uh is what I'll be handling 6:10 6 minutes, 10 seconds now uh which talks about all the key numbers uh from financial point of view. 6:16 6 minutes, 16 seconds So uh first one is revenue. The revenue stood uh at 138.23 crores for the financial year uh ended at March 26. So 6:25 6 minutes, 25 seconds this revenue uh grew by 61.2% 2% yearonear as compared to FYI25 6:31 6 minutes, 31 seconds revenue of 138 crore has been uh a combination of contribution from both our continuing CBM division as well as 6:39 6 minutes, 39 seconds the new acquired est division. So if you look at uh the divisions alone CBM division alone has contributed a revenue 6:47 6 minutes, 47 seconds of 116.5 crores with a growth of 36% appro 36% from that of last year. So 6:54 6 minutes, 54 seconds FI25 is completely CVM division. So when we compare on that there is a a healthy 36% growth. So which uh clearly shows 7:02 7 minutes, 2 seconds that the continuum business is very well poised to grow. I mean has been growing very well and is poised to grow as well. 7:10 7 minutes, 10 seconds The remaining uh 21.7 cr has come from Estel division which uh we acquired earlier in FI26. So um est revenue of 7:20 7 minutes, 20 seconds this 21.7 crores actually represents a 9month number because this division started operating only in July 25. So um 7:29 7 minutes, 29 seconds I mean like being a 9mon number estral division has very much uh achieved a revenue number which is in line with what we had expected for the financial 7:37 7 minutes, 37 seconds year uh which is a good thing which is a happy thing. So um I mean like uh just to highlight Estel division actually uh 7:45 7 minutes, 45 seconds when we acquired had almost no pipeline and uh uh happy to inform you all that it is steadily building a very healthy 7:53 7 minutes, 53 seconds pipeline as you see the overall AIDA uh stood at 31 and a half crores uh from uh 17.98 crores from FI25. 8:03 8 minutes, 3 seconds So, Aida grew by 76% yearonear. Uh, while the revenue growth was 61%, the AIDA has grown at 76% uh which uh 8:12 8 minutes, 12 seconds basically I mean which is furthering the nonlinearity effect that we have been witnessing for the past 2 years. The 8:19 8 minutes, 19 seconds AIDA margins too are steadily expanding u like which was 20.9% for FI25 and is 8:26 8 minutes, 26 seconds now 22.8% which has been the expectation as well. 8:31 8 minutes, 31 seconds So uh I mean like when we while we are speaking about AIDA u maybe some of you might want to look at AIDA numbers or AIDA growth excluding other income. So 8:40 8 minutes, 40 seconds we have we have had other income last year as well and we have had other income this year as well. So FI25 we had 8:48 8 minutes, 48 seconds other income of 3.8 crores roughly while FI26 the other income was 5.5 cr. So even if we exclude these we can still 8:57 8 minutes, 57 seconds see a steep aida growth um between uh the two years FI25 and FI23 the margins 9:04 9 minutes, 4 seconds to can be seen uh as expanded I mean we can see that the margins to have been expanding even without the other income 9:11 9 minutes, 11 seconds the bad grew year by 52% uh which now stands at 18.1 cr as against 11.9 crores 9:18 9 minutes, 18 seconds last year EPS growth has been good as well at 17 um as against 13.16 six last 9:24 9 minutes, 24 seconds year. The next slide, slide seven actually takes us through segmental details. There are a few details between 9:33 9 minutes, 33 seconds uh the continuing CVM division as well as the new est division segments uh that we have been reporting. So uh as as uh 9:42 9 minutes, 42 seconds mentioned previously CVM revenue has been at 116.5 crores whereas Estel has given us a 21.7 cr revenue. The CVM AITA 9:51 9 minutes, 51 seconds stood at 28 crores and ESTL AITA stood 3.4 crores. So uh while CVM achieved a 9:58 9 minutes, 58 seconds 24.1% AITA growth uh I mean AITA margin Estl being a new um division has 10:05 10 minutes, 5 seconds achieved a very healthy AITA margin of 15.6%. 10:09 10 minutes, 9 seconds So um I mean we expect this um aid I mean AIDA margins to grow uh in the years to come and we also expect it to 10:18 10 minutes, 18 seconds uh come closer to u that of CVM divisions margin uh over uh next few 10:26 10 minutes, 26 seconds years. Um so uh that's on the uh segment side. Then um the next slide talks about 10:34 10 minutes, 34 seconds a few key financial ratios uh wherein we have given uh return on net worth return on capital employed as well as debt 10:43 10 minutes, 43 seconds equity. So return on net worth and return on capital employed have been growing steadily. So from 14.97% in FI25 10:51 10 minutes, 51 seconds to 17.4% in FI26. ROC has grown to 20.36 from 10:57 10 minutes, 57 seconds 18.37. So this growth is in line with uh the I mean this growth basically reaffirms the uh number growth that we 11:06 11 minutes, 6 seconds have spoken in the previous slides. The debt debt equity has been steadily coming down as well as we have not been 11:12 11 minutes, 12 seconds adding any uh major uh debt and uh the existing debts have been steadily being repaid. 11:20 11 minutes, 20 seconds So uh these are a few key financial items. I'll hand it over to our chairman back for the remaining slides. 11:28 11 minutes, 28 seconds Thanks. Uh Sheriff, are you able to hear me? Yes, we can hear you. 11:35 11 minutes, 35 seconds Okay, good. Thank you. So, the next slide which is slide number uh nine is about AI. So, as we all know the 11:44 11 minutes, 44 seconds elephant in the room at this point in time is AI. Everybody is concerned about it. Everybody's wondering whether it's going to help or hurt the business. So, 11:53 11 minutes, 53 seconds we are taking uh you know the bull by the horn here. we are looking at uh various aspects and working on that. So I want I would like to update you all on 12:02 12 minutes, 2 seconds that front. So this slide talks about two key areas where AI could or will 12:09 12 minutes, 9 seconds impact us. One is on the product itself as to whether we keep on bringing 12:16 12 minutes, 16 seconds various AI capabilities into the platform which the customers will be expecting to ensure that the product 12:22 12 minutes, 22 seconds remains current. The next thing is uh on the development side the development coding test I mean the testing uh and uh 12:31 12 minutes, 31 seconds you know implementation support in a in various areas today AI is penetrating the use of LLM are uh is increasing so 12:41 12 minutes, 41 seconds how will uh how will that impact us so these are two areas that we need to be uh concerned about we need to work upon the next slide talks about the first 12:49 12 minutes, 49 seconds area which is product features slide number 10 there you will see that we have already launched a platform called 12:59 12 minutes, 59 seconds NVA revenue acceleration platform which covers a variety of Gen AI LLM driven AI 13:08 13 minutes, 8 seconds features those are AI agents co-pilot zero touch campaigning these aspect these take our entire uh you know 13:16 13 minutes, 16 seconds product capability to a completely different level and that will ensure that you know when when when as as we as 13:25 13 minutes, 25 seconds we are constantly delivering these capabilities to our customers that will ensure continued product leadership uh 13:33 13 minutes, 33 seconds so not only won't our product become obsolete our product but it will also actually 13:39 13 minutes, 39 seconds keep on adding uh capabilities and leading from the front with respect to product capabilities. So when you go to 13:48 13 minutes, 48 seconds various Kelos they will see that our product is absolutely current and futuristic and exactly what they're looking for and that will then lead to 13:57 13 minutes, 57 seconds higher growth for us. So on the product features front we are definitely doing an excellent job uh with respect to what 14:06 14 minutes, 6 seconds uh whatever we need to do and we are absolutely confident that uh this is the way to go uh in on the on the product 14:14 14 minutes, 14 seconds feature front. The next slide which is slide number 11 talks about software development. U so here it is all about 14:23 14 minutes, 23 seconds ensuring that we bring in efficiencies into our uh software development activities. We reduce cost etc. That's 14:31 14 minutes, 31 seconds where AI will be used. uh we are already using LLM uh in coding in uh in to 14:39 14 minutes, 39 seconds develop various models to handle support function uh to handle a variety of testing activities for imple for 14:46 14 minutes, 46 seconds implementation activities. So across the uh spectrum of activities that we handle with respect to software development we 14:54 14 minutes, 54 seconds are already handling uh this uh with you already handling LL using LL. Now this would mean our the cost will come down. 15:05 15 minutes, 5 seconds So cost per dollar of revenue will definitely come down. We will keep I mean as we move forward as it is our 15:12 15 minutes, 12 seconds business is nonlinear which means we don't have to add for every dollar of revenue we don't have to have increase the same number of people. That's our 15:19 15 minutes, 19 seconds nonlinearity which is already there in our business. On top of that with this lower cost per dollar of revenue because 15:26 15 minutes, 26 seconds of AI usage the increase in manpower will come down even further. So that'll be the second lever and this will be 15:34 15 minutes, 34 seconds visible in the next 18 to 24 months and this will also result in improved quality um you know better reputation 15:42 15 minutes, 42 seconds etc resulting in higher growth as we move forward. 15:47 15 minutes, 47 seconds So that's the so on on the AI front I think we are absolutely ensuring that uh 15:54 15 minutes, 54 seconds we are leveraging the power of AI to deliver a futuristic product to continue 16:02 16 minutes, 2 seconds to deliver a futuristic product and to ensure that our own development 16:08 16 minutes, 8 seconds activities uh are moving forward in a cost-effective manner by reducing cost improving quality shortening uh time to 16:17 16 minutes, 17 seconds market etc. That brings me to the next uh slide which is slide number two. This lists the products that we have. I won't 16:25 16 minutes, 25 seconds spend time on this. We have repeated this multiple times and it's fairly straightforward. We on the on the C in the CBM division we've got five products 16:34 16 minutes, 34 seconds and managed services which go around that. They all come together before what's called as revenue acceleration platform. The we spoke about AI capabilities in our uh in our products. 16:45 16 minutes, 45 seconds those capabilities are getting added have been added in all these products. 16:50 16 minutes, 50 seconds So we not calling that out separately on this slide. So AI capabilities, LLN capabilities, genai capabilities, those 16:58 16 minutes, 58 seconds are all part of every product uh that we are uh seeing here. And that takes me to the next slide. 17:07 17 minutes, 7 seconds This that's the list of uh products for the for the SL division. We've got three products uh in uh FL division and there 17:15 17 minutes, 15 seconds are manage and and managed services uh growing around that I mean along with that uh again we have repeated this multiple times I won't spend time if 17:23 17 minutes, 23 seconds anybody has any specific question at any point I mean once we get to the Q&A you I can explain those uh products now we come to the next slide 14 I'll hand you 17:32 17 minutes, 32 seconds over to uh Sheriff my colleague for the next two slides um thank you as so uh slide number 14 um 17:41 17 minutes, 41 seconds speaks about the revenue model. So we basically divide our uh revenue into two major buckets. One is repeat revenue and 17:49 17 minutes, 49 seconds then one-time revenue. The repeat revenue is further divided into recurring revenue and reoccurring revenue. So uh recurring revenues are 17:57 17 minutes, 57 seconds essentially contracted revenues that uh keep uh um repeating uh uh every uh at every fixed intervals uh say monthly, 18:06 18 minutes, 6 seconds quarterly or half yearly or annually. I mean depending on the contract. So uh these are basically um uh license I mean 18:14 18 minutes, 14 seconds fixed license fee uh like for uh customers who would go for a license subscription model instead of a onetime license purchase. So there will be a 18:22 18 minutes, 22 seconds monthly fixed license fee uh which is uh one of the major parts of recurring revenue. Then we have AMC for the customers who have taken up licenses the annual maintenance contracts. 18:34 18 minutes, 34 seconds Then there is managed services. Managed services uh essentially have uh three uh major items. The IT operations uh which 18:41 18 minutes, 41 seconds is basically technical support, the business planning uh which is basically helping the customers plan their uh campaigning activities etc. and then uh 18:50 18 minutes, 50 seconds business operations which help them to actually uh uh launch these campaigns and operate them. Uh the final uh thing in the recurring revenue is gain share. 19:01 19 minutes, 1 second Uh so with certain customers we we do have contracts wherein if they earn uh incremental revenue out of the platform 19:09 19 minutes, 9 seconds uh a part of that will be shared with us. So that's the recurring revenue part and then there is reoccurring revenue. 19:17 19 minutes, 17 seconds Reoccurring revenues are basically change requests which are customizations from existing customers like customers needs keep changing every now and then 19:25 19 minutes, 25 seconds and they will probably need some new features uh and ex I mean some new customizations etc which are um very 19:33 19 minutes, 33 seconds much very much repetitive in nature because they keep coming every now and then from these customers. So the recurring and reoccurring revenue put 19:41 19 minutes, 41 seconds together uh is what forms the repeat revenue. So which come from the uh existing set of customers the one-time 19:49 19 minutes, 49 seconds revenue uh is basically perpetual license and implementation fee. So um like overall u a higher uh repeat 19:58 19 minutes, 58 seconds revenue uh a combination of recurring and reoccurring revenue is actually uh a very good uh uh indicator of our 20:05 20 minutes, 5 seconds business uh wherein like u a higher uh u repeat revenue as compared to one time revenue will give you give us a better 20:13 20 minutes, 13 seconds uh view of the uh future revenue better revenue productivity etc. So the next slide uh gives us a revenue bifurcation. 20:22 20 minutes, 22 seconds So uh as I was saying u uh higher repeat revenue um I mean a repeat revenue which is more than 75% of the total revenue is 20:30 20 minutes, 30 seconds always a good thing for the business and we would like to keep it that way. So for FI26 uh the uh recurring revenue of 20:37 20 minutes, 37 seconds 60% and reoccurring was 22 with a giving us a total repeat revenue of 82% which is a very good indicator and one time revenue was 18%. 20:48 20 minutes, 48 seconds So uh I mean we expect u although uh it will not be same uh year on year we expect it to be uh anywhere about 75%. 20:57 20 minutes, 57 seconds Uh so that's on the revenue uh as well as the revenue bifocation. Um back to you. 21:04 21 minutes, 4 seconds Okay thanks presume you're able to hear me. Uh are you all able to hear me? 21:12 21 minutes, 12 seconds Yeah. Yeah. Thank you. Thank you. So now I'm on slide 16 which shows the number of customers. We already touched upon 21:19 21 minutes, 19 seconds this earlier 46 customers product of 35 countries and out of those uh 46 customers about 31 this is as on 31st 21:28 21 minutes, 28 seconds December not March 31st we have u 31 of them using managed services from us. Now 21:36 21 minutes, 36 seconds this is a lever for growth. As we continue we will keep on increasing the penetration of managed services within 21:43 21 minutes, 43 seconds our existing customers. As you can see as the graphs indicate uh there was a time when it was a much lesser 21:50 21 minutes, 50 seconds percentage and it continuously uh increasing. Moving to the next slide. 21:57 21 minutes, 57 seconds This is about the market penetration and opportunity. 22:01 22 minutes, 1 second When we look at the products that we have at this point in time and compute the potential market opportunity, we see 22:10 22 minutes, 10 seconds a size of about 12,000 crores as opportunity. So we are only at about 1% of the market at this point in time, maybe a little over 1%. 22:20 22 minutes, 20 seconds There is still a very long way to go. 22:22 22 minutes, 22 seconds But when we look at the market penetration with respect to customers, how many Telos have we penetrated? That 22:28 22 minutes, 28 seconds is 10%. Today we are at about 46 out of 450 telos. Now the reason why these 22:36 22 minutes, 36 seconds numbers are different when one is 1% the other one is 10% is because even where we have penetrated into a telco we have 22:44 22 minutes, 44 seconds not yet sold all the products that we have and all the services that we can 22:51 22 minutes, 51 seconds sell. So if we were to sell all the products and all the services to this 22:58 22 minutes, 58 seconds particular set of 46 Celsius then our size will also be equal to 10% of the of the market size but that's not the case 23:05 23 minutes, 5 seconds today we have got only 1% of the market size in rupee charge while market penetration is 10%. Now but this market 23:14 23 minutes, 14 seconds penetration is important because it is not practical to expect to sell all the products to every telco customer we have. it doesn't work. So we have to 23:23 23 minutes, 23 seconds keep increasing market penetration and keep increasing our penetration of products and services within each telco 23:30 23 minutes, 30 seconds as well. So those are two levers of growth. So today we are at 10% in market penetration. Over the next four or five 23:38 23 minutes, 38 seconds years we expect that to be of the order of about 20 or 25%. So that that will be one area of growth. The next will be 23:48 23 minutes, 48 seconds today our product penetration I think is about 1.3 products. Uh you can see that written we've got eight products. Uh and we've got our penetration is only 1.3. 23:58 23 minutes, 58 seconds So at some point in the next four five years our objective would be to take two or two and a half products per telco. So 24:05 24 minutes, 5 seconds that would also mean uh much higher uh you know revenue coming from each telco. 24:11 24 minutes, 11 seconds So it is about going into more telos and at the same time going deeper within each telco. These are two very strong 24:21 24 minutes, 21 seconds growth levers that we have and we'll keep working on those two levers. 24:27 24 minutes, 27 seconds The next slide which is slide number 18 uh talks about our key strength. We've got a very endto-end offering. It's 24:34 24 minutes, 34 seconds highly referenceable. We've got some excellent customers, very large customers, including the likes of Vodafon Idea at about 250 plus million 24:43 24 minutes, 43 seconds subscribers and several other large ones at 80 million, 90 million, 100 million subscribers. We have a lot of patented 24:50 24 minutes, 50 seconds technology which helps us differentiate from our competition. We've got very very deep domain expertise. Uh we're 24:57 24 minutes, 57 seconds handling very large volumes of transactions. So there are various aspects which are very critical and very 25:04 25 minutes, 4 seconds unique to us at this point in time which form our key strength when we go and stand in front of a potential customer to sell our product or product and and 25:14 25 minutes, 14 seconds these then naturally become mode for others to you know cross and enter. So 25:21 25 minutes, 21 seconds they become barriers for others to enter and that's what I'm now referring to in the next slide. This is the investment 25:28 25 minutes, 28 seconds rational slide number 19. So I I will this is not in any particular order. 25:34 25 minutes, 34 seconds I've just listed them there. So we spoke about market penetration. So we already have a very good penetration of 10%. We are constantly increasing it and I'm 25:42 25 minutes, 42 seconds absolutely confident of somewhere between you know 20 to 25% in the next four to five years at which point in time we'll be handling more than 100 25:51 25 minutes, 51 seconds teleos at you know uh you know with respect to servicing them with at least one product and I believe it will be 25:59 25 minutes, 59 seconds higher than the current 1.3 product penetration. So one is market penetration, one is product penetration that will also increase, services will 26:08 26 minutes, 8 seconds increase. With all that the revenue for a customer will keep increasing. AI for us is a differentiating factor. 26:17 26 minutes, 17 seconds We are absolutely soaring with AI. We have brought in a lot of interesting features, very attractive features, very 26:25 26 minutes, 25 seconds valuable features and capabilities for our telco customers. So that will help us maintain our leadership and continue 26:34 26 minutes, 34 seconds on the growth path respect with respect to organic growth and at the same time we are also reducing our cost. So that 26:40 26 minutes, 40 seconds will help the nonlinearity to increase further. I spoke about the higher 26:47 26 minutes, 47 seconds barriers to enter uh the kind of product the kind of technology we have the references that we have the uh the 26:55 26 minutes, 55 seconds technologies that we uh have used the patents that we have and various aspects the volume that we handling the domain 27:02 27 minutes, 2 seconds expertise that we have all these come together to form a very very high barrier for potential competition to enter. 27:11 27 minutes, 11 seconds Coming to the numbers, visibility and predictability, we have got extremely high visibility in our business. As we 27:19 27 minutes, 19 seconds look at the current financial year FI2627, although we're talking about FI20 uh you know financial year ended FI26, I would 27:26 27 minutes, 26 seconds like to touch upon the new financial year FI27. 27:29 27 minutes, 29 seconds As we started the year, we had 82% of revenue already contracted. So of the 27:37 27 minutes, 37 seconds expected revenue for 2627 we've got a particular internal target of that internal target of revenue we have 27:46 27 minutes, 46 seconds already got 82% in contracts with us contracts in hand so that means we only need to win and execute another 18%. And 27:54 27 minutes, 54 seconds and I'm sure that if you some of you might remember that in the last year by September 25 we had 100% contracted 28:04 28 minutes, 4 seconds situation and currently we're at 82% for this year. Let's see how that progresses. I'm sure it'll progress very well. So this gives us a lot of 28:13 28 minutes, 13 seconds visibility and predictability in the business. So when I look at next year FI28 already a lot of revenues for that is contracted because of the recurring 28:21 28 minutes, 21 seconds revenues that we have. So as time goes by the visibility and predictability will increase. Now with all of this the 28:28 28 minutes, 28 seconds penetration that we have the compet the barrier to competition visibility predictability uh AI that we are 28:35 28 minutes, 35 seconds leveraging etc etc we are absolutely confident of excellent growth in the years to come and we are committing to 28:43 28 minutes, 43 seconds at least 15% annual growth on revenue organic growth. Uh so if there's some acquisition that'll be on top of this 28:51 28 minutes, 51 seconds organic growth of 15% at least over the next five years on an annual basis every year and while that happens aid will 29:01 29 minutes, 1 second also grow in the next 3 to four years uh two to three years maybe even aida will be at a at a higher level than what it 29:08 29 minutes, 8 seconds is today and say in the past we have stated that in our kind of business I'll be happy when we get to 30% EIDA and I think that that's also something that 29:16 29 minutes, 16 seconds could happen in the next uh two to three years while the revenue itself will grow at 15% every year. With that I hand you 29:23 29 minutes, 23 seconds over to Sheriff if you want to touch upon anything on the financials otherwise we can throw the floor open for Q&A. 29:31 29 minutes, 31 seconds Okay. Uh thank you. So on the financials we have already spoken on all the uh key numbers. So in addition to that we do 29:38 29 minutes, 38 seconds have uh Q4 numbers given separately in the income statement on slide 21 for uh those who are interested to go through. 29:47 29 minutes, 47 seconds Um so yeah uh I think with that we can open the floor for question and answer. 29:53 29 minutes, 53 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone 30:01 30 minutes, 1 second telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 30:10 30 minutes, 10 seconds question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 30:20 30 minutes, 20 seconds We'll take our first question from the line of Abi JN from AJ Capital. Please go ahead. 30:27 30 minutes, 27 seconds Hi, good evening. Hope I'm audible. Yes, you are. Go ahead. 30:32 30 minutes, 32 seconds Hi. Uh I just had two questions. uh first obviously on the spread of AI and the more data and the more information and the more confirmation that we get 30:41 30 minutes, 41 seconds from you know the the better it is for our understanding and confidence uh so shooting directly coming directly to that no I understand from your slide and 30:49 30 minutes, 49 seconds from your deck you know how you're integating AI into the product suite right uh using LLM uh to do uh the 30:56 30 minutes, 56 seconds campaign management and uh for all the data analytics etc that part I understand uh what part I would want to 31:05 31 minutes, 5 seconds understand further is that uh for any of your clients right uh earlier the problem usually was that you know it is 31:13 31 minutes, 13 seconds very difficult it was very difficult for any small telecom player or any telecom player otherwise also to build an endow 31:20 31 minutes, 20 seconds software now the problem with these generic LLM and the generic AI is that that cost has you know shot down 31:26 31 minutes, 26 seconds drastically uh so uh the generic LLM can help them build all the features of a 31:33 31 minutes, 33 seconds campaign manager including data analytics everything the only thing that remains that cannot be done is probably 31:40 31 minutes, 40 seconds live integration with the real time data uh of the customer so I just want to understand that going forward uh how are 31:48 31 minutes, 48 seconds they affected from that how do customers not only uh use don't use you only for the integration there they can have 31:56 31 minutes, 56 seconds their in-house generic LLM right which does all the data management all the campaign management everything but in use you only for the integration there. 32:04 32 minutes, 4 seconds Uh so there I wanted some more clarity that why can't why is that not a viable threat for every 32:12 32 minutes, 12 seconds okay good question we don't believe that is going to happen because of the overall complexity of a 32:19 32 minutes, 19 seconds product like campaign management it is an people may say what is it you just take some campaigns and sorry you 32:26 32 minutes, 26 seconds just take some subscriber segment you plan a campaign campaign being buy this get that free and sort it out it's as Simple as that is what you would think. 32:36 32 minutes, 36 seconds The concept is that simple to understand the product is that simple. But the 32:42 32 minutes, 42 seconds nuances are very many. Now if you take a uh you know something called a state 32:50 32 minutes, 50 seconds flow in our product this is a journey builder. Now typical journey for a typical telco 32:57 32 minutes, 57 seconds I mean imagine a flowchart. Now that's a journey right? I mean you all understand flowcharts. 33:03 33 minutes, 3 seconds Now imagine a flowchart with about 250 or 300 boxes as in one box and various branches in 33:13 33 minutes, 13 seconds that. You can't have 250 boxes in in a serial fashion, right? One after the other after the other. It doesn't work like that. You start with one box you 33:21 33 minutes, 21 seconds then you have a then you have three branches. Then you go into that then you have multiple branches coming from each of these branches and then for the branches then for the branches. That's 33:29 33 minutes, 29 seconds how a flowchart works. So imagine a large flowchart with 250 or 300 boxes of 33:37 33 minutes, 37 seconds decision making action and stuff like that. Imagine constructing a software to do something like that. 33:45 33 minutes, 45 seconds It is extremely complex. Extremely complex. Now first of all you should know how to tell AI to do something like 33:53 33 minutes, 53 seconds this. The whole prompt engineering will have to go to a completely different level, a totally different orbit to be able to even think of building something 34:02 34 minutes, 2 seconds like that. And even if you have that kind of prompt engineering, it is not practical because of the complexity of 34:09 34 minutes, 9 seconds that. Now trust me, we have tried it internally to know whether it works or not. It doesn't work. This was the first 34:18 34 minutes, 18 seconds question we asked ourselves as as to will the telos do that and this we asked some time ago and we have the answer now 34:25 34 minutes, 25 seconds because we tried ourselves no it it it just doesn't work. So this is just one feature in our product. There are 34:33 34 minutes, 33 seconds hundreds of features like this which have to work together in a very wellcoordinated manner and then you have 34:42 34 minutes, 42 seconds got all the challenges of the integration as well. So if they try to do that, it will easily take them even 34:51 34 minutes, 51 seconds if they whether they can do it or not is a secondary question. But if they really try, it'll probably take them a year to do something like this if at all they 34:58 34 minutes, 58 seconds try. What is the point? And because in that year then who's going to maintain it? Who's going to keep upgrading it? 35:06 35 minutes, 6 seconds Now today our customers all ask us I mean a tenor sees only their business in their country. They don't see what's happening in 30 countries, in other markets, in other geographies. They 35:15 35 minutes, 15 seconds don't know what is going on in the world. They keep asking us about it and that that knowledge goes into your product. They don't have access to that 35:22 35 minutes, 22 seconds knowledge. So that's why they keep asking us. So in short, what will happen is if at all they develop something, 35:31 35 minutes, 31 seconds what they develop will be substandard, will be way behind what we have even today. Forget about what we will have 35:39 35 minutes, 39 seconds tomorrow. So it is much cheaper and more sensible for them and and I I I'm not even thinking about how many tokens they 35:47 35 minutes, 47 seconds will have to buy to do all this. Okay, I'm not even thinking about it. So it'll be much cheaper for them and more 35:54 35 minutes, 54 seconds sensible for them to rely on somebody like that. So I don't think this is a threat and that's very practical experience. 36:05 36 minutes, 5 seconds Does that answer your question? 36:07 36 minutes, 7 seconds Yeah, that helps. Uh my second question was around recuring revenue because I think that is one very important part of 36:14 36 minutes, 14 seconds their business. Uh I just want to understand for your legacy client or for your topline client who has been your customer for more than three four years 36:22 36 minutes, 22 seconds now. Uh in terms of the recording revenue uh the has there been an annual increase in contract value? I mean that 36:30 36 minutes, 30 seconds can always be be linked to you know inflation etc. But generally I don't want to understand from a product perspective and from a increase in 36:38 36 minutes, 38 seconds module perspective for example you're just saying that you know in the presentation you mentioned that on an average a customer uses 1.3 of your 36:47 36 minutes, 47 seconds products right out of the eight product that you have. So I just want to uh understand that the contract value that you have seen increasing [clears throat] 36:54 36 minutes, 54 seconds across your customers has it come on the back of you know the increase in the product suite used by the customers has 37:02 37 minutes, 2 seconds it come on the back of you know customer more uh users of the of the module of the product at the client end or has it 37:10 37 minutes, 10 seconds just been uh inflationary increase. If you can just throw some light around that to understand whether you know your legacy platforms are getting more in trend in the company. 37:20 37 minutes, 20 seconds It really comes from us selling more modules, more capabilities, features, more services etc. That is where whether 37:27 37 minutes, 27 seconds it's in the form of a recurring license fee or recurring AMC uh recurring managed services it all comes from new 37:35 37 minutes, 35 seconds things being done. Generally we sign three or five year contracts and the prices for so if it's a support fee in a 37:45 37 minutes, 45 seconds year or a license fee in a year something like that that stays constant for the 3 year or 5 year period it 37:52 37 minutes, 52 seconds doesn't have an inflation related increase. So to when we price it, what we do is we take this year's price, we 38:00 38 minutes apply inflation for if it's a 5-year contract, we apply inflation for the next 5 years, then we average it out to get to an annual number. So we're not losing out because of inflation. We are 38:09 38 minutes, 9 seconds we are averaging it out and coming up with a fixed number. That's what they propose. At the end of five years when they renew, yes, it will go up, but not 38:16 38 minutes, 16 seconds not till then. So during that 5 year period, the real increase is because of all the new features, functionalities, modules, services, etc. which they buy from us. 38:27 38 minutes, 27 seconds Perfect. Uh just going forward, can you just throw some more light around this in your presentation just to help us understand whether you know there is an 38:35 38 minutes, 35 seconds uptrend in terms of more products being used by a customer and the 15% revenue growth that you're targeting for do you 38:43 38 minutes, 43 seconds have any sense or can you give us any sense in terms of you know breaking it down between inflation and volume growth? Typically in any other business 38:51 38 minutes, 51 seconds you understand right that there's a value and a volume growth. In your case the value volume and the value growth. 38:57 38 minutes, 57 seconds No no this is on a this is on a uh you know constant currency basis just volume 39:04 39 minutes, 4 seconds growth. I mean that what you're calling it. Yeah. 39:06 39 minutes, 6 seconds This is okay. So inflation adjusted talking about yeah that will that will sit on top of this. So yeah, 39:16 39 minutes, 16 seconds that that helps. So yeah, just going forward if you can just throw more light around this you know. Yeah of products that that help. All right. 39:24 39 minutes, 24 seconds That's also my thing. Thank you and all the best. Thank you. Yeah. 39:27 39 minutes, 27 seconds Thank you ladies and gentlemen to ask a question please press star and run on your phone. Next question is from the 39:35 39 minutes, 35 seconds line of Warun Gandhi from Fin Avenue Growth Fund. Please go ahead. 39:44 39 minutes, 44 seconds Vun, sorry to interrupt. Can you use your handset mode? 39:47 39 minutes, 47 seconds Yes. Yeah. Yeah. Hey, Subash. Uh, thank you for the details and thank you for, you know, outlining your growth 39:55 39 minutes, 55 seconds aspiration and outlining the key strengths that would enable you to achieve that aspiration that we've said. 40:02 40 minutes, 2 seconds But on that uh could you elaborate more on the sales strategy here? You said you wish to add more logos and you also wish 40:11 40 minutes, 11 seconds to expand or uh go deeper within your existing logos, right? Could you help me elaborate your sales strategy here in 40:19 40 minutes, 19 seconds terms of uh uh uh not just your employees but also the sales pitch because I'm sure your your your new 40:27 40 minutes, 27 seconds telco clients would also be having uh these platforms. So how do you wish or how do you intend on displacing the existing platforms? 40:37 40 minutes, 37 seconds I'm just trying to get a sense of all of that. 40:40 40 minutes, 40 seconds Well, it is actually uh you know I don't know whether this is a good answer or a bad answer for you but the the real answer is that it is no different from what we have done over the past 10 40:48 40 minutes, 48 seconds years. We go and pitch all the new capabilities and the futuristic capabilities to our customers and 40:56 40 minutes, 56 seconds establish that we have a product which is way better than what they have today and which is something which will be 41:03 41 minutes, 3 seconds future proof for them that is if they come with us it will be future proof for them. So this is one thing we establish our referenceability there. We ask them 41:12 41 minutes, 12 seconds to check with our existing customers for reference check and stuff like that and that establishes a variety of things about us our support capability product 41:21 41 minutes, 21 seconds capabilities and all those things. So these are so that's that's the core I mean that's our of course we will keep 41:28 41 minutes, 28 seconds adding more people as and when we require to cover uh you know to have bandwidth and stuff like that. So that's that part of the course. But the 41:35 41 minutes, 35 seconds strategy really is about having the best product out there and then ensuring that 41:43 41 minutes, 43 seconds we are able to get ambassadors who will vouch for the product in the form of existing customers. Really that's what 41:51 41 minutes, 51 seconds it is. These are the two key elements of our stage strategy. Something we have done all along the way. 41:58 41 minutes, 58 seconds Got you. But is there anything more tangible you that you could share in terms of how do you approach a new client or or a new geography trade fairs or references? 42:10 42 minutes, 10 seconds Okay. Yeah, that I can tell you. So we have got various ways. So we we use online tools like Lucia, we use LinkedIn 42:17 42 minutes, 17 seconds quite extensively to reach out to people. We have got our marketing on a regular every every week we have two or 42:25 42 minutes, 25 seconds three outreach uh you know campaigns which go to a very large set of potential customers and we get leads 42:33 42 minutes, 33 seconds coming out of it. We today we uh you know these days we attend two large trade shows every year and one trade 42:41 42 minutes, 41 seconds show of our own uh which is called PBM executive forum. So we invite people to that I mean customers and non-c 42:48 42 minutes, 48 seconds customers as well. So there are three trade shows which we which we go to. So it's a combination of and there's inside 42:55 42 minutes, 55 seconds sales where they uh directly call up potential customers and pitch to them. 42:59 42 minutes, 59 seconds So it's a combination of uh you know elect going through these uh apps like 43:06 43 minutes, 6 seconds uh LinkedIn and Luca and others. It is uh also general marketing strategy where we send campaigns to I mean we use 43:15 43 minutes, 15 seconds LinkedIn, we use uh Twitter, we use other things for campaigns. Then there are trade shows. Then of course there's word of mouth not to forget our existing 43:23 43 minutes, 23 seconds customers uh you know spreading uh the word. We go to the you know if we have one telco one opore within a group we go 43:31 43 minutes, 31 seconds to other group other uh you know group oposes as well. Uh so this is another way of uh doing for example we had 43:38 43 minutes, 38 seconds Sudatel in the Sudani group u uh sorry Sudani in the Sudatel group uh initially now we work with Shingel we work with 43:46 43 minutes, 46 seconds expert so there are three of uh there three of them in the same group so we went to them uh took the reference of the first customer and and use that so 43:54 43 minutes, 54 seconds it's a combination of all of that understood would would you be able to share any examples where you've 44:02 44 minutes, 2 seconds successfully been able to uh you know displace an incumbent competitor or a 44:09 44 minutes, 9 seconds pure platform. Every contract we have won is by replacing either an income 44:16 44 minutes, 16 seconds another vendor or an internal product and that is that I would say about 98% of customers have come maybe one or two 44:24 44 minutes, 24 seconds of them have come through replacement of internal product. The other 44 would have come through uh you know replacing 44:32 44 minutes, 32 seconds a competitor. There are no green field it's all brown field. 44:38 44 minutes, 38 seconds Understood. Understood. That's reassuring to know that. And lastly, uh when you said you want to, you know, deepen relationships with your existing 44:46 44 minutes, 46 seconds clients, upsell them more modules, where is the challenge over there? Why haven't we been able to move beyond that uh 1.3 44:57 44 minutes, 57 seconds uh on an average 1.3 the metric that you earlier disclosed on the presentation just trying to understand where is the challenge and how are you tackling it? 45:06 45 minutes, 6 seconds Elco sales is a very slow sales process. 45:09 45 minutes, 9 seconds It's a very long sales cycle. You I mean on an average you will say about 10 to 12 months. There are cases where we have to knock on the door for two years 45:17 45 minutes, 17 seconds before we get an entry. It's also because Telos are extremely risk averse. 45:22 45 minutes, 22 seconds So replacement is something that they do only when they are absolutely certain. 45:26 45 minutes, 26 seconds So it takes time. So really it is that it is just a natural sales cycle which is taking time. and the fact that it's 45:34 45 minutes, 34 seconds not that our competition is sitting uh doing nothing, so they're also doing something. So, it's a combination of all of that. So, it's a slow it's a slow 45:41 45 minutes, 41 seconds grind. It takes time and and we're working on that. 45:46 45 minutes, 46 seconds So, there's no specific challenge. It's just the usual sales activity and the sales cycle and all that. 45:52 45 minutes, 52 seconds Understood. Uh now that we have AI on our side, do you think the implementation and the sales cycle 45:59 45 minutes, 59 seconds should ideally reduce since uh cycle the sales cycle will not reduce it's got nothing to do with AI it's the speed at 46:07 46 minutes, 7 seconds which a telco takes the decision we have no control over that implementation time yes will reduce 46:14 46 minutes, 14 seconds right telco is usually is just your corporate inertia telco is like that it's a there's a lot 46:22 46 minutes, 22 seconds of inertia there there's a lot of risk averseness there there's a lot of bureaucracy there so when they say we do it very fast they mean they do it in 46:31 46 minutes, 31 seconds three months Yes. Again, thanks for sharing the 46:38 46 minutes, 38 seconds details. I'll join back to Thank you. Participants who wish to ask a question are requested to press star 46:46 46 minutes, 46 seconds and one on their phone. Next question is from the line of Dil Zeri from Crown Capital. Please go ahead. 46:56 46 minutes, 56 seconds Hello. Uh good evening. Thank you so much for taking my question. I think the elevator of results sir. So just wanted 47:04 47 minutes, 4 seconds to understand that uh when you're talking about a higher you know product uh uh you know penetration and market 47:12 47 minutes, 12 seconds penetration uh isn't 15% growth a bit too conservative sir because even you 47:19 47 minutes, 19 seconds know even standalone CVM division has you know performed I think you said 25% better than last year. So sir just wanted to get your thoughts on that sir. 47:29 47 minutes, 29 seconds the standalone CBM uh or I don't want to call it standalone I then I don't want to get that to be confused with consolidated the CVM organic growth from 47:38 47 minutes, 38 seconds last year to this year was 36% I believe Sher am I right yeah that was 36% not 25 if you look at the last two three 47:47 47 minutes, 47 seconds years we have been growing at a frantic pace I don't want to be committing uh anything more than 15% at this point in time but you can look at you know read 47:55 47 minutes, 55 seconds all the other signs and signals and the tracker thought and all that and come up with a number that you feel is appropriate. 48:06 48 minutes, 6 seconds Okay. Okay. Uh that's okay. I've got the point sir. And so I just wanted to understand like in terms of like 48:14 48 minutes, 14 seconds competitive landscape because as you said like you know uh uh you know telos take a lot of time for you know something to be finalized. So just a 48:23 48 minutes, 23 seconds two-parter. So once you know we you know we are able to get into a company then 48:29 48 minutes, 29 seconds how long how sticky is that and uh what is the competitive landscape right now 48:35 48 minutes, 35 seconds you know for us sir okay so and and I I I don't want you all to think that you know telos are really 48:43 48 minutes, 43 seconds bad organizations they take time and all that so let me add some positive side to it their business is very complex they 48:51 48 minutes, 51 seconds have a they do have even if there only like three telos in the country. It's a very competitive market. MNC is there. 48:57 48 minutes, 57 seconds So, somebody can move from one telco to another telco at the drop of a hat. So, it's a very competitive market for them. It's a very complex market for them. 49:04 49 minutes, 4 seconds That's why they are extremely careful and risk covers and they take time. So, it's that is to their uh you know that we need to understand that. So, if if we 49:13 49 minutes, 13 seconds were sitting there running a telco probably we will do the same. I mean because of the nature of the business. Now once we get in we really stay there. 49:22 49 minutes, 22 seconds So in 10 years we have not been pretty much replaced anywhere other than in one 49:30 49 minutes, 30 seconds organization where they actually the ownership changed hands and they wanted um you know some uh they want to bring 49:37 49 minutes, 37 seconds some something which uh they have been doing internally for uh in the earlier thing for a long time or something like that and there was a language issue it 49:46 49 minutes, 46 seconds was they wanted everything to be in Russian and I think not not English. So that's where uh we got uh we got replaced. So that that's been it in 10 49:54 49 minutes, 54 seconds years in one. So I I don't even consider that as a uh you know uh great number to focus on. So we don't get replaced and 50:03 50 minutes, 3 seconds we could get replaced if we are not current if we are if we become obsolete if our support levels are bad. So it's actually up to us to ensure. So really 50:13 50 minutes, 13 seconds we may lose out we may get replaced because of a political reason. So that was what happened in that segment. 50:18 50 minutes, 18 seconds political reason. If there is no political reason, there will never be, I believe, a technical reason for us to be 50:26 50 minutes, 26 seconds replaced. We will never lose out because of technology, product capability and stuff like that. We could lose out because of this is also the primary 50:34 50 minutes, 34 seconds reason why we lose uh why we don't win some of them. Political reasons and political reason I don't want to be listing what the what what the reasons 50:41 50 minutes, 41 seconds are. I'm covering a variety of things under this term political reason. I hope I hope all of you understand. So there are various things there. So we lose out 50:50 50 minutes, 50 seconds because of political reasons and we could get replaced because of political reasons but not because of technical reasons. 50:57 50 minutes, 57 seconds Okay, that's that's really great to hear about it sir. Uh and so just last one bookkeeping question. So what is the tax 51:05 51 minutes, 5 seconds rate that you know we operate under currently what I could look at it it is sub 10%. So just like could you help us out with that sir? 51:15 51 minutes, 15 seconds Correct. 51:17 51 minutes, 17 seconds Yeah. Okay. So, uh the effective tax rate for current year has been around 7 to 8%. But, uh I mean uh so tax rate 51:25 51 minutes, 25 seconds effective tax rate depends on a lot of things. I mean uh on a consolidated level uh we have profits flowing in from 51:33 51 minutes, 33 seconds our Singapore subsidiary, our UA subsidiary as well. And I mean which are mostly at a lower tax rate zone. And uh 51:41 51 minutes, 41 seconds so Singapore subsidiary also has some uh carry forward losses that we are we are utilizing and further like there will be 51:49 51 minutes, 49 seconds uh certain foreign taxes that would have got deducted while payments come in and we get some rebates out of that 51:56 51 minutes, 56 seconds depending on uh I mean the global income and a ratio of that and all. So given all that uh so it varies but I would say 52:03 52 minutes, 3 seconds a 10% effective tax rate is something that is uh that is uh something that we can uh work with so for the current 52:12 52 minutes, 12 seconds financial year and maybe a year and two okay okay fair enough it from my thank you so much sir 52:20 52 minutes, 20 seconds thank you in order to ensure that management is able to answer queries from all participants kindly restrict your questions to two at a time you may join back the queue if time permit. 52:30 52 minutes, 30 seconds Thank you. Next question is from the line of Mortaza from Pinpoint X Capital. Please go ahead. 52:39 52 minutes, 39 seconds Um, hi sir. Good. Uh, good evening. I hope I'm audible. You are. 52:45 52 minutes, 45 seconds Yeah. Uh, first of all, congratulations on a good set of number and the successful acquisition and just a couple of questions. Firstly, 52:54 52 minutes, 54 seconds I just wanted to understand uh the kind of uh contract time uh in in terms of 53:01 53 minutes, 1 second what sort of renewal period do we have and how do we price in our uh increase on prices or do our renewal stay flat or 53:11 53 minutes, 11 seconds how does it work? If you could just uh put some light on it. 53:17 53 minutes, 17 seconds You're asking whether we get increased price every year or we ask for renewal or when we renew we ask I mean I didn't quite get the question. 53:26 53 minutes, 26 seconds Yeah. So I just wanted to understand like in general what uh how long are the contracts and how do we uh yeah 53:36 53 minutes, 36 seconds okay so as I stated earlier our contracts are either 3 years or 5 years generally. So the price and the price is fixed for that period of 3 years or 5 53:44 53 minutes, 44 seconds years. Subsequent to that when a contract renewal happens uh we would go in and try to increase that uh increase 53:51 53 minutes, 51 seconds the price to the extent we can okay okay and that's when we subjective it's very subjective there's 53:59 53 minutes, 59 seconds no rule or something that we can right and secondly sir I just also wanted to uh understand what sort of 54:07 54 minutes, 7 seconds geographic pockets are we looking into to add on some new logos uh if you just have any in our minds or are we particularly passing mountains? 54:18 54 minutes, 18 seconds We are we are continuing to focus on Asia, Africa and Middle East at this point because there's still a lot to be 54:24 54 minutes, 24 seconds done in this in these geographies. Uh we have not reached anywhere in the form of penetration uh or rather let's say 54:32 54 minutes, 32 seconds saturation there because if you take these three geographies we are probably talking about some 250 to 300 Telos something like that. with a very large number of telos. 54:44 54 minutes, 44 seconds So there is a long way to go and we continue to focus on this and at some we are also looking at Latin America to some extent but not as much as we looking at these geographies. 54:56 54 minutes, 56 seconds Understood. And just one final question I just wanted to understand what is our uh long-term vision taking into play our 55:05 55 minutes, 5 seconds CPM division and our STL division like are we planning to have an integrated SAS uh where uh we'll just put in all 55:13 55 minutes, 13 seconds our products uh at one place or is it more of a separate offering uh that we'll be giving to our uh clients or how 55:22 55 minutes, 22 seconds are we planning so the products that we have there are they they actually handle very different uh activities. So that's why we have 55:30 55 minutes, 30 seconds eight separate products. Them being in two separate divisions is just only a matter of convenience. Uh it really means nothing. But we will be selling 55:37 55 minutes, 37 seconds them as separate products. I mean they will of course come together to sit on a platform if need be. They're well integrated. All those things are there 55:45 55 minutes, 45 seconds but they will continue to be separate products. 55:49 55 minutes, 49 seconds Okay. Okay. Understood. Thank you very much. Uh all the best. Thank you. Thank you. 55:56 55 minutes, 56 seconds Thank you. We will take the next question from the line of Vun Gandhi from Pen Avenue Growth Participants 56:09 56 minutes, 9 seconds question how exact if you could just quantify on the pipeline and where do you see that going in terms of conversion? 56:20 56 minutes, 20 seconds The pipeline is continuing to expand uh as we target more and more customers and from two re for two reasons. One uh as 56:29 56 minutes, 29 seconds we have more customers from the same customers we get more stuff coming in. 56:33 56 minutes, 33 seconds So that will increase the pipeline. Then there are new potential customers uh adding to the pipeline. So pipeline is continuing to grow. Our conversion 56:42 56 minutes, 42 seconds typically is to the tune of about 30 odd percent. 56:48 56 minutes, 48 seconds Of qualified pipeline. Okay. a qualified pipeline, not the raw pipeline, a qualified pipeline. 56:55 56 minutes, 55 seconds And by qualified, you mean uh RFI, there has to be an RFI or an RFP out. 57:03 57 minutes, 3 seconds Understood. 57:04 57 minutes, 4 seconds It can't be just you know, they we went to them, they said, "Yeah, we would like to have it." And that that is where the discussion is at this point in time. 57:11 57 minutes, 11 seconds That's not qualified. If when they say yes they are interested and they float an RFI or an RFP to act when they actually kickstart a process that's when it becomes a qualified. 57:22 57 minutes, 22 seconds Understood. Also I was looking to get some sense of uh what the revenue concentration is in terms of number of 57:30 57 minutes, 30 seconds or sorry the top five customers or the top 10 customers any any number that you could share would you have that at this point in 57:39 57 minutes, 39 seconds time? Yeah. So top five customers are around 39 to 40%. So top 10 are around 60%. 57:48 57 minutes, 48 seconds At this point in time, so top five was around 45% last year. So which has uh slightly reduced and top 57:56 57 minutes, 56 seconds in the next three four years in the next three four years I would expect top 10 to be in the region of only about 20 25%. It it'll keep coming down. 58:06 58 minutes, 6 seconds Okay. All right. So you're looking to make the revenue more granular. 58:12 58 minutes, 12 seconds I mean most widespre as we keep on increasing more customers and each each customer also grows within us naturally these numbers. 58:20 58 minutes, 20 seconds Yeah. Of course. All right. Got it. Uh that's it from me. Thanks again for the opportunity. Welcome. 58:30 58 minutes, 30 seconds Thank you. We will take the next question from the line of Hanchjel an individual investor. Please go ahead. 58:39 58 minutes, 39 seconds Uh yes, actually this is I just had a question about uh 58:46 58 minutes, 46 seconds any you know like since the company is growing very fast and we know that lot of R&D are going on is there going to be 58:54 58 minutes, 54 seconds any additional capital requirement actually? 58:57 58 minutes, 57 seconds No, I mean we we are adequately uh you know you know from a capital expenses perspective we are uh it's not we are 59:06 59 minutes, 6 seconds not heavy on that. It's a very light model. Uh so whatever numbers you have seen that will kind of continue going 59:15 59 minutes, 15 seconds forward as well. So it's it it's not a large number to talk about actually I was talking in terms of because we are 59:23 59 minutes, 23 seconds spending a lot of money on AI development and futures right but that all that is being all that is being written off as well right 59:32 59 minutes, 32 seconds so when I say capital expenditure I really mean only the computing infrastructure right okay so so next like two three 59:41 59 minutes, 41 seconds years we don't have any plans to debt or equity nothing to what to dilute equity to raise money 59:48 59 minutes, 48 seconds for capital exper I'm saying in next two three years whether we want to acquire company or we want to grow the company we don't have 59:56 59 minutes, 56 seconds any plans to raise any additional liquidity or debt right no to grow the company organically absolutely no we don't need to to 1:00:05 1 hour, 5 seconds acquire businesses whether we'll do it or not I don't know right okay 1:00:16 1 hour, 16 seconds Thank you. A reminder to all the participants. You may press star and one to ask a question. 1:00:30 1 hour, 30 seconds As there are no further questions, I would now like to hand the conference over to Miss Jani Patil from Orin Connect for the closing comments. Thank you and over to you ma'am. 1:00:41 1 hour, 41 seconds Thank you everyone for joining the call today on behalf of the I would like to add I would like to add a couple of comments please. 1:00:49 1 hour, 49 seconds Yeah sure sir. 1:00:50 1 hour, 50 seconds So uh we have discussed the numbers we have discussed the business aspect and all that. So I would like to leave you all with this uh thought that the 1:00:58 1 hour, 58 seconds business is growing very well organically excluding the other income because people know that most of the other income comes from your forex forex 1:01:07 1 hour, 1 minute, 7 seconds movement. excluding the other income. If you look at our EITA growth, you will see it is upwards of 80%. 1:01:15 1 hour, 1 minute, 15 seconds While the organic revenue growth has been uh you know while the total growth has been not organic uh including 1:01:24 1 hour, 1 minute, 24 seconds acquisition has been 61%. So whether you look at it from an organic standpoint or including acquisition including the uh 1:01:33 1 hour, 1 minute, 33 seconds other income or excluding the other income whichever way you look way you look at it you will see that profit or 1:01:39 1 hour, 1 minute, 39 seconds EIDA has grown faster than revenue that is nonlinearity and that nonlinearity 1:01:47 1 hour, 1 minute, 47 seconds will continue in the years to come will only accelerate because of AI this is a thought I would like to leave with you 1:01:54 1 hour, 1 minute, 54 seconds and the fact that we are leveraging AI, we are using that and we believe that that will help us to produce even better 1:02:02 1 hour, 2 minutes, 2 seconds results in the year to come. That's it for my side. Thank you. Please go ahead or thank you everyone for joining the call 1:02:10 1 hour, 2 minutes, 10 seconds today. On behalf of Pilateral Limited, we appreciate your time and participation. For any further queries, please reach out to us at let'sconnecting.in. 1:02:20 1 hour, 2 minutes, 20 seconds Thank you everyone. Thank you management. 1:02:24 1 hour, 2 minutes, 24 seconds On behalf of Thank you. On behalf of Odin Connect, that concludes this conference.