Route Mobile Ltd — Q4 FY26

Route Mobile Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=LD_DqrjkOCg Published: 5 days ago

0:02 2 seconds Good evening ladies and gentlemen. 0:04 4 seconds Welcome to the conference call of root mobile limited to discuss its Q4 and FI26 results. At this moment all 0:11 11 seconds participants are in the listen only mode. Later we will conduct a question and answer session. At that time if you have any questions please raise your 0:19 19 seconds hand and we will unmute your line to ask questions. Please lower your lower lower your hand after you have completed the question. 0:27 27 seconds Before we begin, I would like to remind you that some of the statements made in today's earnings call may be forward-looking in nature and may involve certain risk and 0:35 35 seconds uncertaintities. Kindly refer to slide two of the presentation for the detailed disclaimer. Please note that this conference is being recorded. I now hand the conference over to Mr. Vine Binala. 0:47 47 seconds Thank you and over to you. 0:52 52 seconds Good evening everyone and welcome to Root Mobile's Q4 and fullear FI2526 earnings call. I'm Vin Byala, chief 1:00 1 minute strategy officer and investor relations officer at root mobile. Thank you for joining us. We have a full house today and we appreciate the continued 1:08 1 minute, 8 seconds engagement. I would first like to introduce my colleagues at root mobile who are joining us on this call today. 1:14 1 minute, 14 seconds Sashkin Ariikhan, chairman of the board root mobile and CEO of Proximus Global. 1:19 1 minute, 19 seconds Rajiv Gupta, managing director of root mobile. Toshar Agnihotri, chief executive officer of root mobile and Rajgill, global chief financial officer at root mobile. 1:29 1 minute, 29 seconds Before we begin, a brief note on the format. We are running this quarter's call slightly differently. In addition to the usual financial results and 1:38 1 minute, 38 seconds business highlights, we are dedicating a significant portion of today's session to a strategy update. Given the evolution of our business over the past 1:47 1 minute, 47 seconds year, shaped by broader market trends and sharpened internal strategic focus, we felt this was the right time to share 1:54 1 minute, 54 seconds that thinking with the shareholders and the analyst community in some depth. We believe it provides important context 2:01 2 minutes, 1 second for the numbers. Also the structure for today's discussion will be as follows. 2:06 2 minutes, 6 seconds Tusharihotri our CEO will open with a business overview and the strategic direction we are pursuing. Seskin 2:13 2 minutes, 13 seconds Narikan a chairman and CEO of Proximus Global will cover root mobile's role within Proximus Global and the larger 2:20 2 minutes, 20 seconds Proximus group. I will follow that up with a walkthrough of the growth strategy and business metrics with Tushar adding color and context where 2:28 2 minutes, 28 seconds relevant. Raj Gil our group CFO will then take us through the financial results and outlook. We will have time for Q&A at the end. Over to you Tashad. 2:42 2 minutes, 42 seconds Good evening everyone. Thank you for your time today. We've structured this session around four themes. I'll cover the business fundamentals. What root 2:50 2 minutes, 50 seconds mobile is, how it's built and where our differentiation lies. Sashkin will provide the proximus global context 2:57 2 minutes, 57 seconds which is central to understanding the broader strategic picture. W will then walk through the growth strategy in detail and we'll run through the 3:05 3 minutes, 5 seconds business metrics together. Raj closes out with the financial results and guidance. Let's begin. 3:13 3 minutes, 13 seconds I want to use this slide to establish the framework for the details that follows. The straightforward message is the reset is largely behind us and the 3:21 3 minutes, 21 seconds business status emerged from it structurally healthier. We say that with confidence and the numbers also reflect the same clearly. Gross profit margins 3:30 3 minutes, 30 seconds expanded in FI26 as relatively low margin volume has exited the mix. What remains is more resilient more 3:38 3 minutes, 38 seconds defensible revenue base. And to put the numbers to that FI26 was the first time that our annual gross profit crossed 3:46 3 minutes, 46 seconds INRA,000 crores that translated to a 22.9% gross profit margin for the year. 3:53 3 minutes, 53 seconds The driver was exactly what I have described the exit of low margin business partially offset by the growth 4:00 4 minutes of higher margin domestic revenues. It's a milestone that reflects quality of earnings not just cake. Two growth 4:08 4 minutes, 8 seconds engines are gaining real traction. One on the product side, RCS, WhatsApp and 4:14 4 minutes, 14 seconds AI enabled messaging have grown at 43% compounded annual growth rate over the 4:21 4 minutes, 21 seconds period FI22 to FI26. That trajectory points towards the towards where the channel mix is heading. On the Amino 4:29 4 minutes, 29 seconds solution side, our firewall and network API products are building into a high margin recurring revenue stream that sits alongside the enterprise business. 4:40 4 minutes, 40 seconds We have created a solid pipeline for the AIdriven A2P SMS and voice firewall solutions that we offer to Moss and this 4:49 4 minutes, 49 seconds will reflect in revenue expansion from this line of business in the coming quarters. 4:54 4 minutes, 54 seconds Two structural advantages underpin the whole approach. 4:58 4 minutes, 58 seconds First, India as a global innovation hub uh what we incubate and what we prove in India we deploy worldwide. The Akash 5:07 5 minutes, 7 seconds education network API deployment and is the tangible proof point of that model. 5:12 5 minutes, 12 seconds We developed and deployed a network APIdriven silent verification solution for the client which helps them address 5:20 5 minutes, 20 seconds requirements such as tracking students dropouts during the online registration process. The solution can now be extended to customers across the globe. 5:30 5 minutes, 30 seconds Second, Proximus Global uh being part of the group provides root mobile cross-ell access to 900 plus Mos relationship and 5:38 5 minutes, 38 seconds a global enterprise space that no standalone CPASS company can access. And we are being deliberate about capital 5:46 5 minutes, 46 seconds allocation, targeted bolton acquisitions to deepen platform capabilities and meaningful returns of excess capital to 5:55 5 minutes, 55 seconds shareholders. We have also defined robust frameworks to support built versus buy decisions when evaluating 6:02 6 minutes, 2 seconds product expansion or entry into new entering into new geographic markets. 6:06 6 minutes, 6 seconds The reset was a difficult one. I believe it has made us more focused, more defensible business and one that is well positioned for the next phase. 6:21 6 minutes, 21 seconds For those newer to root mobile story, a quick look at the business fundamentals. 6:26 6 minutes, 26 seconds 3100 plus enterprise clients, 175 billion messages processed annually, 280 plus direct MO connections across the 6:34 6 minutes, 34 seconds globe. INR 4,400 plus crores in revenue for A526. 6:40 6 minutes, 40 seconds What distinguishes us as a preferred A2P SMS solution provider for global enterprises is a direct connect with M 6:48 6 minutes, 48 seconds globallies. These connects are not routed through intermediaries and are direct agreements and platform integration built over two decades of partnership with such MOS. 6:59 6 minutes, 59 seconds that depth of operator partnership is a genuine competitive barrier and it's our customers delivery rates and pricing 7:07 7 minutes, 7 seconds that aggregate only players cannot replicate. This positions us strongly as a partner for traditional A2P SMS solutions. 7:16 7 minutes, 16 seconds We have been profitable since year one of operations and that discipline continues in FI26. our cash flow from 7:24 7 minutes, 24 seconds operations to a beta ratio was 100% plus reflecting a healthy cash generative business. I would also want to talk 7:32 7 minutes, 32 seconds about our platform evolution story as it provides important context for where we taking the business. Root mobile was 7:40 7 minutes, 40 seconds built on A2 SMS that remains a significant part of a business today. 7:45 7 minutes, 45 seconds But the platform has evolved meaningfully and we now offer a unified full stack platform that encompasses all 7:53 7 minutes, 53 seconds channels of communication that an enterprise could require across RCS, WhatsApp, Viber, email and more recently 8:01 8 minutes, 1 second network API products that sit at the MOS's back end authentication uh SIM swap detection and device verification 8:10 8 minutes, 10 seconds amongst others capabilities that very few messaging platforms offer. 8:16 8 minutes, 16 seconds This enables us to deliver cutting edge secure customer experience solutions to enterprises. The direction is clear from 8:23 8 minutes, 23 seconds connectivity infrastructure and towards a AI part intelligence at the enterprise engagement layer. As we move up this 8:31 8 minutes, 31 seconds value chain, the margin profile improves and the customer relationship becomes structurally stickier. This evolution 8:39 8 minutes, 39 seconds from pure connectivity to an AI powered engagement platform is exactly what the growth strategy is designed to accelerate. 8:50 8 minutes, 50 seconds Three things that differentiate root mobile in the market. First, global connectivity. Being part of Proximus global immediately expands our direct M 8:58 8 minutes, 58 seconds access to 450 plus carriers. 280 plus direct connects of root mobile and an additional 170 plus direct connects that bigs as to the ecosystem. 9:08 9 minutes, 8 seconds This is not replicable in a short time horizon and it translates into delivery reliability and pricing that aggregators cannot match. 9:17 9 minutes, 17 seconds Second, a full stack CPASS platform SMS, voice, email, RCS, WhatsApp, omni channel, one single platform, one 9:25 9 minutes, 25 seconds integration with AI ready capabilities embedded natively across the channels. 9:31 9 minutes, 31 seconds Third, Proximus Global being part of a multi-billion euro telecom group gives root mobile access to distribution and 9:39 9 minutes, 39 seconds technology partnership that a company of our scale simply could not access independently. Sichkin will elaborate on 9:46 9 minutes, 46 seconds this but I can uh I want to flag it here as a genuine structured advantage not a financial characterization. 9:54 9 minutes, 54 seconds We frog through the root mobile journey uh because I think the discipline of how we've built the business is relevant context for assessing the credibility of the plan ahead. We started with $2,000. 10:07 10 minutes, 7 seconds We built direct car relationship systematically country by country. We listed ourselves on BAC and NSE. We made targeted acquisition to add capability 10:16 10 minutes, 16 seconds and enter new geographic markets. We transitioned from an aggregator model to a direct enterprise platform model. The 10:24 10 minutes, 24 seconds acquisition of root mobile by Proximus was a pivotal moment in that journey. It moved root mobile from being a well-run 10:31 10 minutes, 31 seconds regional CPASS company to being the enterprise connectivity and AI platform of a global B2B telecom group. The 10:39 10 minutes, 39 seconds strategic and commercial implications of that are still playing out and they are very much in our favor. The current 10:46 10 minutes, 46 seconds chapter which vi will take you through in detail is about the next evolution of that journey. With that let me hand over to Sichkin. 10:56 10 minutes, 56 seconds Thank you Tushar and good evening everyone. I'm Sichkan chairman of root mobile's board and CEO of Proximus 11:04 11 minutes, 4 seconds Global. I want to spend a few minutes on the Proximus Global context because I believe it is important for 11:11 11 minutes, 11 seconds understanding the full root mobile story. 11:15 11 minutes, 15 seconds Proximus Global brings together three businesses focused on delivering communications and customer engagement services to global enterprises. 11:25 11 minutes, 25 seconds We operate across three core businesses. 11:28 11 minutes, 28 seconds BIX our global connectivity platform, TeleSign, our digital identity and communications API business and root 11:36 11 minutes, 36 seconds mobile our enterprise CPASS and omni channel engagement platform. Each fills a distinct role in the enterprise 11:44 11 minutes, 44 seconds connectivity value chain. Root mobile fills the one that is most difficult to build. Direct at scale enterprise 11:53 11 minutes, 53 seconds relationships across a platform that spans messaging, voice, AI and network APIs. None of the other entities in the 12:02 12 minutes, 2 seconds Proximus global group do that at the scale and efficiency that Rule mobile does, which makes it in my view strategically very important. 12:12 12 minutes, 12 seconds Let me be specific about what Proximus group membership means for root mobile in practice because I believe it is sometimes underestimated. 12:22 12 minutes, 22 seconds BIX has direct relationships with most of the mobile network operators globally. For root mobile that is a 12:28 12 minutes, 28 seconds commercial distribution channel. As we seek to expand our RCS delivery reach, we can leverage this mobile network 12:36 12 minutes, 36 seconds operator access to accelerate our initiatives. When we develop a new network API product, a silent verification solution or a fraud 12:45 12 minutes, 45 seconds detection capability, we have an immediate path to those operators at global scale. That is an extraordinary 12:53 12 minutes, 53 seconds advantage for a company of our size. BIX is also enabling a rapid pipeline development for the A2P SMS and voice 13:02 13 minutes, 2 seconds firewall solutions that root mobile offers to mobile network operators globally. 13:09 13 minutes, 9 seconds Teleisign has a deep and established enterprise customer base in the US and the European markets. Many of those customers have requirements that root 13:18 13 minutes, 18 seconds mobile's omni channel Cass platform is well positioned to address. The cross-ell pipeline is active and 13:25 13 minutes, 25 seconds building gradually. Root mobile is not executing this plan alone and the distinction matters significantly for how you assess execution risks. 13:36 13 minutes, 36 seconds This slide illustrates the scale and the global react that Proximal Global has a group as a group trusted by several 13:44 13 minutes, 44 seconds Fortune 500 enterprise clients across the globe. Ability to connect with 5 billion plus individuals worldwide. 13:52 13 minutes, 52 seconds 200 plus billion messages processed annually. Truly omni channel CPASS platform. Ability to offer enhanced 14:01 14 minutes, 1 second digital identity solutions that aim at fraud prevention. 14:06 14 minutes, 6 seconds What I would like to ask you to note is the two directional n nature of this relationship. Root mobile brings enterprise relationships and CPASS 14:15 14 minutes, 15 seconds platform capability to the group. The group through big and telesign brings distribution rich operator relationships 14:23 14 minutes, 23 seconds and a customer base that amplifies what root mobile can achieve independently. 14:29 14 minutes, 29 seconds As the plat platform continues to evolve, Genai firewall network APIs those capabilities enhance the value 14:38 14 minutes, 38 seconds proposition of the entire Proximus global group for enterprises and operators alike. It's a cycle and it's 14:46 14 minutes, 46 seconds one we are investing in with with conviction. 14:51 14 minutes, 51 seconds To close, let me bring together the key reasons why root mobile within Proximus global is a compelling opportunity. 14:59 14 minutes, 59 seconds Three reasons this is compelling. First, absolute operational strategic backing. 15:05 15 minutes, 5 seconds Joint commercial programs are running with Bixs and Teles. This is an active execution, not a future opportunity. 15:13 15 minutes, 13 seconds Second, the cross-ell opportunity is near-term and measurable. Big customers who have never been offered CPASS Teles 15:22 15 minutes, 22 seconds enterprise accounts who have yet not been introduced to root mobile's omni channel suite. These are real con 15:28 15 minutes, 28 seconds conversations underway. Third, Root Mobile is building an AI native CPASS platform at precisely the moment 15:37 15 minutes, 37 seconds enterprises are accelerating AI adoption in their customer engagement strategies. 15:43 15 minutes, 43 seconds The demand is clear. The platform is being built to meet it. With that, I will hand it over to Vine for the strategy detail. 15:56 15 minutes, 56 seconds I want to address this directly because the credibility of our recovery plan depends on a cleareyed account of what we experienced. Certain headwinds converged in the past 18 to 24 months. 16:07 16 minutes, 7 seconds The most significant was structural A2B SMS historically a significant revenue driver for us is in secular 16:15 16 minutes, 15 seconds decline. Certain large enterprises migrated to WhatsApp RCS and other OTD channels. This shift has affected every 16:23 16 minutes, 23 seconds CPASS business with material ID exposure. 16:26 16 minutes, 26 seconds The second was AIT, artificially inflated traffic. An industry-wide cleanup triggered a significant decline in A2B SMS volumes globally. As an 16:35 16 minutes, 35 seconds aggregator, root mobile was exposed to that contraction. 16:39 16 minutes, 39 seconds Third, macro enterprise CPASS budgets were cut as part of cost optimization cycles over the past few years in 16:46 16 minutes, 46 seconds response to high A2P SMS costs in certain geographies. 16:51 16 minutes, 51 seconds Discretionary communication spend was amongst the first categories to be reduced. 16:56 16 minutes, 56 seconds Fourth, our new products grew at 11% yearonear but from a small base at approximately 8% of total revenue. They 17:04 17 minutes, 4 seconds are not yet large enough to offset the revenue decline. 17:08 17 minutes, 8 seconds And fifth, postacquisition integration complexity added a layer of operational challenge that was not purely marketdriven. 17:16 17 minutes, 16 seconds We have spent the past 12 months understanding each of these precisely. 17:20 17 minutes, 20 seconds The strategy I'm about to walk through is a direct response to every one of them. 17:26 17 minutes, 26 seconds If I can add something here, when we looked at what happened, the honest conclusion were that some of the headwinds were genuinely outside the 17:33 17 minutes, 33 seconds control. The cleanup, the macro spending cycle, but some of them, particularly the pace of product mix transition, and 17:40 17 minutes, 40 seconds the integration complexities, those were things we could have moved faster on. 17:45 17 minutes, 45 seconds We've been direct with ourselves about that. The strategy V is about to walk you through reflects the candle. It's a specific plan, not a generic recovery narrative. 17:58 17 minutes, 58 seconds This is the playbook. And before I walk through it, I want to highlight an essential fact. Execution is already underway across every element of this. 18:07 18 minutes, 7 seconds This is not a forward-looking plan. It's a live program. Root Mobile is making a deliberate shift to platform defensibility. The architecture has 18:15 18 minutes, 15 seconds three layers. At the top platform strengthening two pillars elevate is about omni channel platform scaling RCS 18:24 18 minutes, 24 seconds WhatsApp and ocean moving up the value chain improving margin quality deepening customer lockin. Innovate is the AI and 18:33 18 minutes, 33 seconds India innovation hub. Genai ready CPASS internal AI deployment and India is the product incubation center for Proximus Global Group. 18:44 18 minutes, 44 seconds The middle layer is near-term growth execution. Deepen refers to core market penetration. We 18:52 18 minutes, 52 seconds have 3,100 plus clients, majority using our solutions for a single communication channel. The wallet share opportunity 18:59 18 minutes, 59 seconds within that base is substantial and requires no customer acquisition spend. 19:05 19 minutes, 5 seconds Expand drives geographic growth backed by Proximus infrastructure and Telesign enterprise relationships. 19:13 19 minutes, 13 seconds The foundation layer is accelerate M&A and partnerships AIL acquisitions to compress the capability build timeline 19:22 19 minutes, 22 seconds ISV and partner ecosystem to expand sales reach and the Proximus cross cell which I would describe as the most structurally distinctive and 19:30 19 minutes, 30 seconds underappreciated element of the entire plan. The five pillars reinforce one another. Deepening the core strength 19:38 19 minutes, 38 seconds strengthens the positioning and validates the platform differentiation. 19:42 19 minutes, 42 seconds Platform differentiation in turn enables geographic expansion. 19:47 19 minutes, 47 seconds M&A could help accelerate all other initiatives. It is a compounding engine. 19:51 19 minutes, 51 seconds That said, M&A will be driven bases a well- definfined evaluation framework which helps determine whether build or 19:58 19 minutes, 58 seconds buy towards the various initiatives such as developing or acquiring certain specific platform capabilities or new 20:06 20 minutes, 6 seconds market entry through organic setup versus a local acquisition. 20:11 20 minutes, 11 seconds I want to add one thing here. When you look at the architecture of the strategy, the thing that gives me personal conviction is that each of these pillars has a clear line of 20:20 20 minutes, 20 seconds ownership internally and a set of active programs behind it. This isn't just a slide we built for this discussion. The M&A pipeline is already live and 20:29 20 minutes, 29 seconds evolving. Piloting products in India market and then taking them to global customer base is already in the works. 20:35 20 minutes, 35 seconds The omi channel platform is being actively sold. 20:40 20 minutes, 40 seconds [snorts] 20:42 20 minutes, 42 seconds three focus areas under the first pillar. 20:46 20 minutes, 46 seconds Omni channel scale, RCS, WhatsApp and ocean. This is a direct commercial response to A2P SMS decline. As 20:54 20 minutes, 54 seconds enterprise clients migrate off SMS, we need to be the platform they migrate to. 21:00 21 minutes RCS and WhatsApp are growing. Ocean ties the channels together and creates the platform stickiness that makes customer 21:06 21 minutes, 6 seconds relationships more durable. We are also witnessing that enterprises are leveraging different channels for different use cases. For instance, plane 21:15 21 minutes, 15 seconds notifications are still being transmitted through SMS whereas interactive customer support use cases are being supported over WhatsApp and 21:22 21 minutes, 22 seconds RCS. Our Ocean platform addresses exactly this requirement by enabling all channels through a single platform 21:30 21 minutes, 30 seconds offering a one-stop shop to enterprises for all their customer engagement requirements. 21:36 21 minutes, 36 seconds Next, Gen AI enabled CPASS. Enterprises increasingly want to deploy AI powered customer engagement, intelligent chat 21:44 21 minutes, 44 seconds bots, voice agents, personalized messaging workflows. We are actively enhancing the platform to be the trusted 21:51 21 minutes, 51 seconds CPASS delivery layer for that. CRM, ERP and CDP connectivity, AI accelerated 21:58 21 minutes, 58 seconds deployment pipelines. The development work is already underway. We support ready integration between our platform 22:05 22 minutes, 5 seconds and several commonly used CRM, ERP and CDP platforms. 22:10 22 minutes, 10 seconds Firewall and network APIs is an extremely exciting component of our business offerings. Regarding A2P SMS and voice firewall for mobile operators, 22:19 22 minutes, 19 seconds our AI powered fraud detection and revenue optimization solutions create recurring managed services revenue streams for mobile network operators. 22:27 22 minutes, 27 seconds And we are witnessing strong operator demand and pipeline buildup for these solutions. We are also leveraging 22:33 22 minutes, 33 seconds Proximus network API initiative Conera to offer differentiated innovative solutions around silent verification, 22:41 22 minutes, 41 seconds SIM swap and device location to enterprises. These solutions create high barriers to entry as they require integrations with mobile network 22:49 22 minutes, 49 seconds operators. We are actively pitching these network API based solutions to enterprises. 22:55 22 minutes, 55 seconds These are capabilities that make root mobile genuinely difficult to displace. 23:03 23 minutes, 3 seconds I would like to highlight three active programs around this theme which we are referring to as innovate. The internal 23:10 23 minutes, 10 seconds AI we have a live AI program running across organizational functions including customer support, engineering 23:17 23 minutes, 17 seconds and deployment. We are driving measurably lower cycle times, better support resolution rates and faster product delivery. We are scaling this 23:26 23 minutes, 26 seconds mandate aggressively across every function. 23:29 23 minutes, 29 seconds Genai chat and voice solutions. We are building AI native conversational agents for both chat and voice channels, not 23:36 23 minutes, 36 seconds basic FAQ bots. Multi-turn contextual AI interactions that meet the growing enterprise demand for intelligent 23:44 23 minutes, 44 seconds customer engagement across chat, voice, and messaging. Root mobile is positioning as the CPASS delivery layer for that demand. 23:53 23 minutes, 53 seconds Network API deployment. The Akash education proof point. We deployed a network API powered silent verification 24:01 24 minutes, 1 second solution to Akash education, one of India's leading leading largest edtech platforms. We are now ready to commercialize this solution across the Proximus footprint globally. 24:13 24 minutes, 13 seconds I'd add a thought of uh on India specifically because I think it's worth understanding the philosophy behind the India as innovation hub framing. India 24:22 24 minutes, 22 seconds gives us world-class engineering talent at a cost structure that allows us to take product risk that a western development center simply can't. We can build, test, prove and iterate faster. 24:32 24 minutes, 32 seconds The Akash deployment took just a few months from concept to life. The velocity is a competitive advantage and the proximus global relationship means 24:40 24 minutes, 40 seconds that once something is proven in India, we have the distribution to take it global immediately. The combination is genuinely unusual. 24:51 24 minutes, 51 seconds Next, let's look at core market penetration. Our highest ROI near-term opportunity and it sits entirely within the existing client base. We serve 3,100 25:01 25 minutes, 1 second plus enterprise clients, the majority on a single channel today. 25:05 25 minutes, 5 seconds There is limited to no customer acquisition cost required to capture this opportunity. We visualize three 25:11 25 minutes, 11 seconds specific plays. Key account management for account deepening focus on moving clients from transactional single 25:19 25 minutes, 19 seconds product relationships to multi-year multi- channelannel platform engagements. The value uplift when clients go multi- channelannel is 25:27 25 minutes, 27 seconds significant. cross-ell and upsell to drive migration of SMSonly clients to RCS, WhatsApp, voice, delivering 25:34 25 minutes, 34 seconds meaningful revenue uplift with minimal incremental sales cost. In most cases, this will lead to expansion of use cases that we support for the same client. 25:44 25 minutes, 44 seconds Solutions selling shifting from API connectivity to platform solution engagements. Larger deals, longer 25:51 25 minutes, 51 seconds relationships, and better margins to be driven. 25:54 25 minutes, 54 seconds The base is there. The task is to deepen it systematically. 26:01 26 minutes, 1 second Let's look at our geographic expansion plans with a structural advantage that fundamentally changes the economics of entering new markets. We enter new 26:10 26 minutes, 10 seconds markets which present higher than industry average growth opportunities. 26:14 26 minutes, 14 seconds This changes both the risk profile and the return on investments related to such expansion. We have identified certain priority emerging markets 26:22 26 minutes, 22 seconds including Mexico and Philippines. These are high growth underpenetrated CPASS markets with a strong enterprise demand in BO financial services and e-commerce 26:31 26 minutes, 31 seconds verticals. These are also large markets for the OTT messaging solutions such as WhatsApp and Viber. In the US, Teles's 26:39 26 minutes, 39 seconds infrastructure gives us a lane into the world's largest enterprise messaging market. One root mobile has had limited direct exposure to historically in 26:48 26 minutes, 48 seconds Europe. GDPR compliant messaging for financial services and logistics where our compliance credentials carry real 26:55 26 minutes, 55 seconds weight with enterprise buyers and overarching all of this the Proximus network effect every Bix customer is a 27:03 27 minutes, 3 seconds potential root mobile engagement. We are actively converting that opportunity today especially on the mobile network operation operator solution side of the business. 27:14 27 minutes, 14 seconds The fifth pillar and the one that compounds the returns on all the others. 27:18 27 minutes, 18 seconds Organic growth alone will not close the AI capability gap within the time frame the market requires. Our M&A strategy targets conversational AI and CPASS 27:27 27 minutes, 27 seconds adjacent capabilities compressing a 2 to threeyear organic build cycle into 12 to 18 months. Our acquisition criteria are 27:36 27 minutes, 36 seconds clear. AI native capability, a complimentary customer base and a credible part to accretion within two years of closing. These will be small to 27:44 27 minutes, 44 seconds mid-sized acquisitions primarily for capability and not necessarily for scale of the target business. We are also evaluating new geographic market entry 27:53 27 minutes, 53 seconds through potential acquisitions. These will however be slightly longer drawn processes as the target evaluation would need to be more thorough in terms of 28:02 28 minutes, 2 seconds immediate value add through the acquisition. 28:06 28 minutes, 6 seconds Partner and reseller go to market. We look at expanding the ISV and system integrator ecosystem. 28:13 28 minutes, 13 seconds We also expand telco white label distribution scalable and capital efficient uh approach towards this initiative. We 28:22 28 minutes, 22 seconds have onboarded certain large clients over the past year through our partner ecosystem and we believe this could be significant revenue driver if we 28:29 28 minutes, 29 seconds leverage it in the appropriate fashion and the proximus cross-ell joint go to market programs into bix and telesign 28:37 28 minutes, 37 seconds enterprise bases. This will deliver high ROI and structurally unique solutions which group mobile can bring to the 28:43 28 minutes, 43 seconds market. No standalone CPASS company has access to this liver on M&A. I'd be clear about a philosophy 28:51 28 minutes, 51 seconds here because I think it's worth articulating for the record. We're not looking to make large transformational acquisitions. We're looking for targeted 28:58 28 minutes, 58 seconds capability transactions where the technology accelerates the road map and the customer base is complimentary. The integration risk need to be manageable. 29:08 29 minutes, 8 seconds The time to accuration need to be defined. We've been through the complexity of a large integration. The experience shapes how we approach this. 29:18 29 minutes, 18 seconds Discipline, specific, and capital efficient. 29:26 29 minutes, 26 seconds Let me now run through the business metrics. The next four slides provide the quantitative picture that sits behind the strategy we've just covered. 29:34 29 minutes, 34 seconds They cover the new product revenue trajectory, geographic mix, industry vertical breakdown and the customer cohorts. 29:43 29 minutes, 43 seconds These are worth looking at carefully as they explain both the headwinds and the early evidence of recovery. 29:50 29 minutes, 50 seconds New products revenue is the most important forward-looking metric in these results. So I draw your attention to it. FI2526 new products revenue came 29:59 29 minutes, 59 seconds in at approximately rupes 3,500 plus million. The four-year CAGR since FI22 is 43%. 30:08 30 minutes, 8 seconds Growth moderated to 11% yearon year in FI26. The tougher comparative period and macro environment are reflected in that 30:16 30 minutes, 16 seconds as RCS WhatsApp and AI enabled products continue to scale as a proportion of revenue. Two things follow structurally greater revenue resilience and rapid 30:25 30 minutes, 25 seconds growth. FI26 is a base we are building on not a ceiling. 30:32 30 minutes, 32 seconds on the geographic revenue mix. Two key observations here. India remains the largest termination geography partially 30:39 30 minutes, 39 seconds a function of the IL domestic shift. As international enterprise clients reduced spend, we've grown the domestic 30:46 30 minutes, 46 seconds business. New large domestic customers added and the revenue growth from existing two observations on the geographic mix. India remains the 30:54 30 minutes, 54 seconds largest termination geography. IL volumes declined but were partially offset by domestic volume growth. We added new large domestic customers and 31:02 31 minutes, 2 seconds also witnessed revenue growth from existing clients. The reduction in US headquartered customers contribution also reflects the loss of revenue. The 31:11 31 minutes, 11 seconds same structural dynamic we have been discussing throughout. The geographic expansion strategy we have just covered is designed to accelerate the 31:20 31 minutes, 20 seconds diversification of this mix over the coming years. 31:25 31 minutes, 25 seconds Vertical breakdown useful for understanding where the headwinds are concentrated. Financial services remains our largest vertical and we've seen good 31:33 31 minutes, 33 seconds growth from domestic Indian fintech and BFS clients. High frequency, high stickiness usage patterns which is 31:40 31 minutes, 40 seconds exactly the crime profile we want to deepen. 31:43 31 minutes, 43 seconds Digital native declined due to a specific US headquartered client migrating to alternate channels. 31:49 31 minutes, 49 seconds E-commerce fell reflecting the loss of IL traffic from a global major. The common thread is the global enterprise 31:56 31 minutes, 56 seconds exposure. we've discussed domestic recovery is partially offsetting this and the product mix shift we are executing is designed to accelerate that 32:05 32 minutes, 5 seconds recovery this slide probably best explains the revenue dynamic for FI26 so it's worth a moment two things drove revenue decline 32:14 32 minutes, 14 seconds despite relatively stable transaction volumes first customer mix shift revenue was concentrated in a small 32:23 32 minutes, 23 seconds number of high value accounts the revenue was partially ly replaced by domestic customers, but domestic average revenue per account is significantly 32:32 32 minutes, 32 seconds lower than IL. The silver lining, domestic clients carry relatively higher gross margins, so the profit mix is 32:39 32 minutes, 39 seconds actually healthier even as the headline revenue compressed. 32:43 32 minutes, 43 seconds Second, pricing compression transactions command a structural pricing premium over domestic routes. 32:50 32 minutes, 50 seconds The same transaction volumes processed domestically generate materially less revenue. This is a pricing dynamic, not 32:57 32 minutes, 57 seconds a val volume problem and it underscores why the product and channel mix transition is central to the revenue recovery story. 33:07 33 minutes, 7 seconds I'll close the session with a broader reflection. The matrix when I had just walked through tell a consistent story. 33:13 33 minutes, 13 seconds The challenges of the past two years were real and specific and the recovery is real and building. Gross margins are moving in the right direction. New 33:22 33 minutes, 22 seconds product revenue is on a clear upward trajectory. The domestic customer base is growing. None of those things happen by accident. They reflect the strategic 33:31 33 minutes, 31 seconds choices we've made about to invest and where to hold the line of quality. The base we're building from is sounder than the one we started this research from. 33:40 33 minutes, 40 seconds I'm confident in the direction. With that, I will hand it over to Raj. 33:47 33 minutes, 47 seconds Thank you, Venet. And good evening, everybody. I'll quickly summarize our financial and operating performance during Q426 and for the full year. Then 33:55 33 minutes, 55 seconds I will look to the future with our financial guidance and capital allocation plans. Starting with Q4 revenue and gross profit. Our Q4 revenue 34:02 34 minutes, 2 seconds from operations declined by 3.8% yearonear driven by the structural SMS market volume declines in IODDO. As described earlier, this is partially 34:11 34 minutes, 11 seconds offset by encouraging growth in our domestic business and non SMS products. 34:15 34 minutes, 15 seconds However, looking at the current quarterly trend, revenue grew by 2.2% sequentially to 11309 million, supported 34:23 34 minutes, 23 seconds by 45.1 billion transactions during the quarter. From a gross profit perspective, absolute margin grew 16.6% 34:30 34 minutes, 30 seconds year-onear at 2639 million. While the percentage margin increased to 23.3% as 34:36 34 minutes, 36 seconds compared to 19.3 in Q4 last year, mainly driven by a shift from lower margin volumes, delivery of our rooting and 34:45 34 minutes, 45 seconds cost initiatives along with focus on retention and growth of our high margin existing customers. 34:52 34 minutes, 52 seconds Turning to EBIDAR and profit after tax adjusted EBITDAR for Q4 increased by 11.9% year-onear to 1343 million while 35:01 35 minutes, 1 second being lower in absolute than previous quarter due to seasonality. This represents a 10 quarter record in terms of adjusted EBIT growth demonstrating 35:09 35 minutes, 9 seconds the ability to land the gross margin flow through benefits as OPEX is constrained to mainly wage indexation and receivables provisions. This all 35:17 35 minutes, 17 seconds contributes to an EBIT margin of 11.9% which is higher than the 10.2 two seen in the prior year. Adjusted profit after 35:24 35 minutes, 24 seconds tax was 1144 million which is up 34.6% year-onear and 11.6 on a sequential 35:31 35 minutes, 31 seconds quarter basis. The PAT margin has also increased to 10.1% compared to 9.3 last quarter and 7.2 last year. The strong 35:40 35 minutes, 40 seconds PAT trajectory is mainly driven by higher gross margin, foreign exchange movements, lower financing costs and a lower effective tax rate. 35:49 35 minutes, 49 seconds I will briefly touch on the full year results before moving on to the final section. Revenue from operations declined 3.7% yearonear to 44082 35:58 35 minutes, 58 seconds million. At the same time, gross profit increased by 5.9% yearonear at 1073 million and the margin increased to 22.9% versus 20.8 in the previous year. 36:11 36 minutes, 11 seconds Adjusted IBIDA grew by 0.4% yearonear to 5259 million. IBIDA margin expanded to 36:19 36 minutes, 19 seconds 11.9% compared to 11.5 last year. Profit after tax adjusted for exceptional items 36:26 36 minutes, 26 seconds is higher by 6.7% year-onear to 3761 million with PAT margin at 8.5%. 36:34 36 minutes, 34 seconds Our cash position stood at around 1,400 K as at March 31st. 36:40 36 minutes, 40 seconds This is our usual adjusted and pat walks which we produce every quarter. So now 36:46 36 minutes, 46 seconds looking ahead to future ambitions, the team took us through the strategy, growth opportunities and positioning of root mobile. So let's dive into what 36:55 36 minutes, 55 seconds this means for the coming financial year. Revenue is expected to grow by mid to high single digit driven by the exciting growth playbook and the tangible competitive advantage we see. 37:06 37 minutes, 6 seconds Our laser focus on moderating cost of sales and driving AIE of OPEX efficiencies will continue to deliver stable margin performance. Therefore, we 37:16 37 minutes, 16 seconds will deliver the expected increase in revenue while achieving an EBIT margin of around 12%. 37:22 37 minutes, 22 seconds It's worth noting we deliver a strong EBIT data to cash conversion and this will continue in the coming year. Moving on to how this translates to our capital 37:30 37 minutes, 30 seconds allocation strategy. We will adjust our dividend policy to return a higher portion of our available free cash flow while leaving room for value accreative 37:39 37 minutes, 39 seconds initiatives going forward. Our regular dividend will meaningfully increase from 11 INR per share to a sustainable level 37:46 37 minutes, 46 seconds of 16.5 INR per share which represents a 50% increase. This will be payable each quarter as usual. Thank you all for your 37:55 37 minutes, 55 seconds kind attention during the prepared section of this call. I will now hand over to the moderator for Q&A. 38:04 38 minutes, 4 seconds Thank you. We will now begin the question and answer session. If you have any questions, please raise your hand and we will unmute your line to ask questions. 38:15 38 minutes, 15 seconds We have the first question from the line of Kunal Oji Ramani. Please go ahead. 38:29 38 minutes, 29 seconds Sorry, there's some background. 38:41 38 minutes, 41 seconds We have the question from the line of Amit Chandra. Please go ahead. 38:51 38 minutes, 51 seconds Hello, can you hear me? Yes, we can hear you. Go ahead, please. Yes, please go ahead. 38:58 38 minutes, 58 seconds Yes, sir. Yeah. Yeah. Yes. Thanks for the opportunity and uh you know uh thanks for the you know elaborate uh 39:06 39 minutes, 6 seconds update on the strategy which was actually missing. So uh know firstly sir obviously we have we have actually laid 39:12 39 minutes, 12 seconds down the plan for growth in terms of recovery for the next year. But if I see uh you know this shift that has happened in the industry where you know most of 39:21 39 minutes, 21 seconds the traffic has shifted from the traditional channel to the new channels and the new revenue stream has been created over the last one year. If I see 39:30 39 minutes, 30 seconds the competition uh know they have scaled up that WhatsApp OTT or that uh know segment of the revenue pretty fast and 39:38 39 minutes, 38 seconds that has now become 30 to 35% of the revenue but for us uh it has been only 8% of the revenue from the new products 39:47 39 minutes, 47 seconds where we have missed uh in terms of uh you know the crossell and identifying the new opportunity is it only related 39:55 39 minutes, 55 seconds to the transition uh know uh know the transition related challenges or is is there something you know lacking in 40:02 40 minutes, 2 seconds terms of offerings to the clients because that was a big shift and uh you know from here on how do we see the new products revenue or know contributing to 40:11 40 minutes, 11 seconds growth uh from here on because still u we are at a very smaller part in terms of in terms of the overall uh like 40:19 40 minutes, 19 seconds revenue mix. Uh so that is the first question and secondly you know uh obviously in the existing base we have 40:27 40 minutes, 27 seconds seen a decline of the IL portion which was earlier a you know like major part of of our uh total revenue. [snorts] So 40:37 40 minutes, 37 seconds how this uh shift has been over the next two years and uh currently uh what 40:43 40 minutes, 43 seconds portion of the revenue is uh from uh and I also see the termination uh uh know why is the India portion has been 40:52 40 minutes, 52 seconds coming down. So this is only because of uh uh the uh know the drop in the ID revenues or is it something else to it? 41:00 41 minutes Thank you. 41:02 41 minutes, 2 seconds Sure. So we'll take those questions one at a time. So I think the easiest one is on the product differentiation. So I think when you look at the nons SMS 41:10 41 minutes, 10 seconds product portfolio that we have I think in terms of channels our platform supports all the communication channels that an enterprise could look at whether 41:18 41 minutes, 18 seconds it is WhatsApp RCS in fact Viber in certain Asian markets email. So I would I would not really say that the platform 41:25 41 minutes, 25 seconds is uh you know falling short in terms of capability. In terms of scalability also we have serviced customers where you know we have we have supported 41:33 41 minutes, 33 seconds significantly large transaction volumes on a daily basis for some of our customers on these channels. So I believe in terms of technology and 41:41 41 minutes, 41 seconds platform capability we are pretty much there in terms of what the market needs and also in terms of what we are doing around the product we are creating 41:49 41 minutes, 49 seconds another layer on top of this where we will be able to address a lot of gen AI and AI intelligence related requirements 41:57 41 minutes, 57 seconds that enterprises are now adopting aggressively. So Tashar you would like to add something I mean thank you for the question alongside we gain some new offerings in 42:05 42 minutes, 5 seconds the market something we call as well as conera which we launched a few months back in India that's uh some intelligent platform we bring into the country which 42:13 42 minutes, 13 seconds will uh which is falls a generic category of network API where we leverage our association with telecom 42:20 42 minutes, 20 seconds operators and uh give some solution which we novel to the market we are testing these solutions along with telos in the market and we're very hopeful 42:28 42 minutes, 28 seconds that uh This will bring some new customer base and give impetus to our new product focus in the country. 42:39 42 minutes, 39 seconds Yeah, I think the I think in my last call I also highlighted about the telcom 42:47 42 minutes, 47 seconds product like telco and the enterprise segment. As I mentioned before also I think the firewall piece of business is 42:56 42 minutes, 56 seconds growing very fast. In fact, uh I'm proud to say that uh last month we have achieved the highest amount of revenue 43:03 43 minutes, 3 seconds ever in our firewall business. Some of the contract which we are winning with the help of beex is going to be play a very critical role in in overall growth 43:10 43 minutes, 10 seconds of our uh numbers as well. uh I know uh the sales cycle for the firewall deals are longer but uh recently we have 43:18 43 minutes, 18 seconds closed one large deal as a clar that is live now and we believe that uh the telco focus of our business with the 43:25 43 minutes, 25 seconds help of BEX is definitely going to play a very critical role in coming years down the line. So that is one area where 43:31 43 minutes, 31 seconds we all need to focus on. AI native CPASS solution is something which we are very serious about and AI native firewall 43:40 43 minutes, 40 seconds solution especially the telecom fraud digital fraud is the biggest piece where most of the telos are looking out uh for 43:48 43 minutes, 48 seconds a solution and we as a company 365 square specially focusing more on this AI native solution for the operated uh 43:57 43 minutes, 57 seconds solution and we have successfully implemented certain solution in some of the operators and we are very much in talks with various operators and with 44:05 44 minutes, 5 seconds the great support of BIGs, we do see that business is going to grow multiffold in coming years down the line. 44:12 44 minutes, 12 seconds Sure. To add to to address some of the other questions you had Amit regarding and the India termination. So as you rightly pointed out over the last year 44:21 44 minutes, 21 seconds we did witness decline but if you look at the last quarter we have kind of seen that stabilizing now. So I think whatever decline we were expecting is 44:29 44 minutes, 29 seconds now in the base. Uh and you know even in the in the run rates I don't think we are seeing any further threat to that segment of the business. In terms of 44:37 44 minutes, 37 seconds total contribution to the revenue you know I'm not 100% sure if we've discussed this in the public domain in the past but it's around a quarter to 44:45 44 minutes, 45 seconds oneird of our revenue somewhere in that range. So, so that's where IL in terms of our overall business stands and India 44:52 44 minutes, 52 seconds termination I think you you highlighted yourself that you know given the price point that it attracts per transaction 45:00 45 minutes if there's a decline in it results in a decline in idea sorry in India termination but that said you know we have also offset some of this IL loss 45:09 45 minutes, 9 seconds with domestic business wins which we also spoke about during the presentation so we are seeing growth in domestic customers not only in India but in other 45:16 45 minutes, 16 seconds parts of the world as well. So, so you know that's that's a big push as as Tushar also mentioned you know either with the new products and in some of the 45:25 45 minutes, 25 seconds markets we are still seeing SMS business growth. So so in some of the the emerging markets we are still seeing good growth around SMS and obviously 45:33 45 minutes, 33 seconds you're pushing hard for the non SMS components within our portfolio. 45:37 45 minutes, 37 seconds Yeah and just to add Amit uh just to add one more point out here Amit uh I know most of this uh ODT players they are uh 45:45 45 minutes, 45 seconds trying out different channel of communication such as uh WhatsApp or RCS. We are definitely reaching out to them and giving this options to use our 45:54 45 minutes, 54 seconds channel either on uh WhatsApp or RCS and we have onboarded few large uh ODT customer who are testing our platform to 46:03 46 minutes, 3 seconds move traffic from SMS to RCS. that discussion is going on. We are very early stage but yes we started generating revenue from this OTT player 46:11 46 minutes, 11 seconds on RCS specially and some of the WhatsApp use cases. Okay. 46:19 46 minutes, 19 seconds And u know so just a followup so in the you know in the presentation know the uh 46:26 46 minutes, 26 seconds strategy of growth pillar one the platform and innovation. So obviously you know you said that firewall and network API is the focus area and uh we have been you know growing fast there. 46:37 46 minutes, 37 seconds So where is that growth getting reflected? So this 8% of the revenue which is the new product also includes the like network API revenue or is it uh 46:45 46 minutes, 45 seconds in know of that ad and it's and yeah 46:51 46 minutes, 51 seconds [snorts] 46:52 46 minutes, 52 seconds yeah but so the the nextG products don't include that revenue because largely it is still related to SMS because you know there there is a little bit of a voice 47:00 47 minutes firewall component to it but largely it is A2P SMS firewall solution that we are deploying for operators so that revenue is still being accounted under the SMS 47:08 47 minutes, 8 seconds segment of the business. So the new the next gen that you see is largely channels like WhatsApp, RCS, email and you know other OTD channels. 47:17 47 minutes, 17 seconds Okay. So any any like number what would be the contribution in terms of percentage to the uh in terms of the mix 47:25 47 minutes, 25 seconds uh from the network and firewall and uh if you can just break up uh the know the 47:32 47 minutes, 32 seconds current revenue uh in terms of the old age kind of services versus the newest services and in terms of the strategies 47:39 47 minutes, 39 seconds that you have laid out uh know firstly SMS uh you know AI native services and the firewall and firewall and like network 47:48 47 minutes, 48 seconds API solutions. So, so Amit current revenue mix in terms of in terms of uh know if you can give some idea it will be better for us to 47:56 47 minutes, 56 seconds understand how the mix will change maybe in the next one a year. 48:00 48 minutes Sure amit. So unfortunately we don't disclose that in the public domain. We we'll still you know evaluate internally and we can come back with communication to the analysts and shareholders around 48:08 48 minutes, 8 seconds this but in the past this has not been public information. So so we'll figure out what's the best way to provide some guidance around this. uh but in terms of 48:16 48 minutes, 16 seconds you know the the the nons SMS portfolio as you've seen in the presentation it's around 8% and we are you know identifying ways in which we can grow 48:24 48 minutes, 24 seconds that business significantly and on the AI it is still kind of a new new solution that we are bringing in. So in 48:32 48 minutes, 32 seconds terms of revenue contribution it will take some time but what it will also do in parallel is it will drive adoption of the non SMS platform itself. So because 48:41 48 minutes, 41 seconds the solution becomes more attractive for an enterprise, we will see the channel adoption and revenue around the WhatsApp and RCS channel also pick up when we deploy these AI capabilities. 48:52 48 minutes, 52 seconds And I think Amit the more focus on AI coming forward at root mobile is more 48:59 48 minutes, 59 seconds mainly uh how we can uh enable a customer faster on boarding and uh I think uh through AI we are going to make 49:07 49 minutes, 7 seconds certain changes in our platform very soon and you will definitely see the outcome of those changes uh in coming 49:14 49 minutes, 14 seconds quarters because as far as a platform is concerned as Vine has mentioned we have everything what market needs but there 49:21 49 minutes, 21 seconds are certain AI capabilities required with the current uh platform. I think we are definitely uh already have a plan to 49:29 49 minutes, 29 seconds do that and we already have some kind of engagement on that and very soon you will see that impact of AI on our uh revenue as well. 49:38 49 minutes, 38 seconds Okay. So last question on the guidance. 49:41 49 minutes, 41 seconds So on the guidance so obviously you know we are guiding from mid to high single digit. So is it uh you know so this 49:49 49 minutes, 49 seconds appears to a bit lower uh in terms of the kind of know initiatives that you're taking. So uh in terms of uh the uh you 49:57 49 minutes, 57 seconds know in in terms of growth what segments will drive this and secondly on the margins uh know obviously we are 50:04 50 minutes, 4 seconds targeting around 12% and we are seeing a mix towards the higher margin uh know revenue streams. So if you know once the 50:11 50 minutes, 11 seconds mix changes we you know the margin should have been higher. So why we are know sticking around to the current level. Sorry. 50:18 50 minutes, 18 seconds Amit, Amit, Amit, Amit, Amit, I think last one year we have uh not given any kind of a guidance if you 50:26 50 minutes, 26 seconds remember you know like and market was always expecting some kind of a guidance and we would love to be little conservative in giving the guidance but 50:33 50 minutes, 33 seconds at least we are coming up with a guidance this year and you are right uh this mix will definitely add value to our overall growth and plus ITA margin 50:42 50 minutes, 42 seconds as well but yes uh we are confident this year that there is a growth and there There's a product mix, there is a market uh new market where we are focusing on. 50:52 50 minutes, 52 seconds We're talking about the domestic market uh uh setup as well. And I think all these things really gives that kind of a 51:00 51 minutes confidence to the management that we need to give some kind of a guidance to the market which we were uh not giving 51:06 51 minutes, 6 seconds in past at least we have started and uh we will definitely try to overachieve our number. uh but uh on a on record I 51:15 51 minutes, 15 seconds will say the guidance which we have given at least we are positive that there is a growth and that's exactly how we need to look at 51:24 51 minutes, 24 seconds thank you omit okay sir thank you and all the best thank you thank you omit we have the next question from the line of shwa sharma please go 51:31 51 minutes, 31 seconds ahead hello hope I'm 51:40 51 minutes, 40 seconds yes sure please go ahead Yeah, thank you so much sir. Uh sir, could you please provide volume wise break up domestic and overseas? 51:53 51 minutes, 53 seconds Just give us a moment. I mean we can do this. I mean can we take this offline? 51:57 51 minutes, 57 seconds We can share the data. I mean but it we need to figure out I I'm sorry but I just need to check if this has been discussed in the public domain in the 52:05 52 minutes, 5 seconds past. I'm not 100% sure if this has been a metric which we disclosed to only for you know competitive reasons. I mean we would not want to hold back information 52:12 52 minutes, 12 seconds but for it opens up a bit of our competitive uh advantage in the market. 52:18 52 minutes, 18 seconds So so let me just figure out what's the best way to address this. We can take this offline with you. 52:23 52 minutes, 23 seconds Okay. Okay. Sure sir. Uh so my second question is could you quantify the difference in gross margin between your 52:30 52 minutes, 30 seconds uh traditional A2P SMS uh business and uh these uh new AIdriven solution? also 52:36 52 minutes, 36 seconds uh want what percentage of your uh 175 billion transaction are now solution based rather than just delivery based. 52:45 52 minutes, 45 seconds Sure. So the margin margin difference depends upon the solutioning that we do around the channel as well. So you know typically if you look at the portfolio 52:53 52 minutes, 53 seconds margin today large part of that is obviously coming from the SMS business that we do on the firewall the margins are higher because that is more product 53:01 53 minutes, 1 second oriented business and we have customers where it is being used on a license basis plus the value ad for the customer is significantly higher there. So the 53:10 53 minutes, 10 seconds firewall generates additional revenue for the operator where they are okay to share a larger part of the benefits with us. So the margins there could be 53:17 53 minutes, 17 seconds anywhere in the range of you know depending on the type of engagement it could range from 30% to all the way up to 60 70%. So that is on the firewall on 53:25 53 minutes, 25 seconds the channel side of the business it I mean the portfolio gives you a good guidance of where we stand but as we talk about AI and other solutioning 53:33 53 minutes, 33 seconds around the channel that could generate additional margin because some of those platform capabilities could easily generate you know significantly higher 53:41 53 minutes, 41 seconds margin as compared to the portfolio margin. So unfortunately I'm not able to give you an exact breakdown of uh product wise margin at this point. U 53:50 53 minutes, 50 seconds once again you know because you understand the market it's highly competitive and we would not want to open up all of all of our cards in the 53:58 53 minutes, 58 seconds public domain on on product wise geography wise uh margins that we generate. 54:04 54 minutes, 4 seconds Okay. Uh sure sir no issues. Uh sir if you not uh able to provide the exact number can you uh provide a uh um 54:12 54 minutes, 12 seconds breakup uh of growth like domestic and overseas um uh in in terms of volume growth in UK. 54:20 54 minutes, 20 seconds Sure. So we have seen we have seen volume growth in India domestic business. We have seen volume growth in rest of the world domestic business. The 54:27 54 minutes, 27 seconds only segment where we saw decline last year was the international traffic coming into India. So and you know we've seen similar kind of growth rates in India and non-India domestic clients. 54:39 54 minutes, 39 seconds The only segment where we had challenges which again as I mentioned earlier which have bottomed out and we believe is in the base now is the business where last 54:47 54 minutes, 47 seconds quarter we've seen no further drop in that business either. So we believe that is also in the base. So moving forward I think as as we provided in the guidance 54:56 54 minutes, 56 seconds as well we should start witnessing recovery in the business. 55:00 55 minutes Okay. So um so if my understanding is correct uh so domestically and o 55:08 55 minutes, 8 seconds overseas when we see volume growth it's the same as the last quarter right 55:17 55 minutes, 17 seconds I mean uh growth in terms of percentage like it's the same in quarter or it's the 55:26 55 minutes, 26 seconds same as y what's the sorry I don't think we we've disclosed in the previous year as well. But I mean 55:33 55 minutes, 33 seconds we have seen consistent in the previous year. If you look at FY25 we still had a slight decline I mean a 55:40 55 minutes, 40 seconds slight growth in the domestic side of the business slight decline in so the trend is similar but what we are seeing is by the end of Q4 we are not expecting 55:48 55 minutes, 48 seconds any further drop in the business either at least from the run rates that we are seeing and what we are hearing from the clients I think we bottomed out there 55:56 55 minutes, 56 seconds and on domestic over the last two years we've seen growth coming in. So, so the trend kind of remains where it is only moving forward we should now see recovery in the business. 56:05 56 minutes, 5 seconds Okay. Okay. Thank you so much sir. That's all from my side. 56:08 56 minutes, 8 seconds Thank you Shwa. Next question is from the line of Deep Kumar Ma. Please go ahead. 56:21 56 minutes, 21 seconds Yeah thank you for the opportunity. Uh I have four questions. So I uh start with one by one. Uh first just want to understand what will be our organic 56:29 56 minutes, 29 seconds capex plan and MA investment plan in next two to three years if you can give some sense about how we are looking some of these investment. 56:41 56 minutes, 41 seconds Sure. Sure. Organic capex is not significant as you've seen in the past also. So I think our internal budgets are around Raj you want to highlight that number on the organic capex. 56:50 56 minutes, 50 seconds Yeah I mean it's it's we we do have some some uh organic initiatives um but it's not a meaningful meaningful number. So 56:58 56 minutes, 58 seconds um and pretty much flat yearon year but we are we are looking at some internal capex developments to to support platform growth and move to move to omni channel products. 57:08 57 minutes, 8 seconds on on M&A we are evaluating couple of targets and uh of course we'll we'll build at the right time we will share the uh the opportunities. 57:19 57 minutes, 19 seconds Yeah, but just to add the p just to add the page the any M&A I think probably will do something in AI based 57:31 57 minutes, 31 seconds on sir I think in the couple of areas which you highlighted the reason for asking this is about the case which we 57:38 57 minutes, 38 seconds have on balance sheet what we generate every year and what is our payout so if I look our payout is roughly around 30% 57:46 57 minutes, 46 seconds actually our case is roughly 40% percentage of market a loan case is less than 4% for us. Now if I combine all 57:55 57 minutes, 55 seconds these number capex which we incurred is roughly around 30 40 perom dividend we declare 140 cr 58:02 58 minutes, 2 seconds or random kind of number last two year I'm combining so roughly around 200 to 250 cr is we spend on [clears throat] 58:09 58 minutes, 9 seconds organic capex we spend on dividend in this two year if I combine the fcf which we generated is more than 1,000 cr 58:17 58 minutes, 17 seconds now if we don't have envisaging any let's say very large acquisition 58:24 58 minutes, 24 seconds Then why we are occurring on BL that is what I try to understand even the payout which you indicated the let's let's go one by one question 58:32 58 minutes, 32 seconds to answer your question as I said we are definitely evaluating certain uh targets 58:39 58 minutes, 39 seconds uh for acquisition we would definitely want to make sure that any acquisition which we do should add a value to our 58:46 58 minutes, 46 seconds current existing portfolio and something in AI because AI is a need for the market today And I think we believe that 58:53 58 minutes, 53 seconds AI will add lots of value add to our portfolio offering and we are definitely evaluating some targets in this space 59:00 59 minutes and very soon we will announce that as well. As far as the cash is concerned the management and the board is very much aware of this. We are definitely 59:09 59 minutes, 9 seconds looking out various other option to deploy the cash and uh we will definitely share in coming quarters what are we going to do with this cash. But 59:18 59 minutes, 18 seconds as of now we are very clear this cash will go uh I think mainly on um uh some of the acquisition which we are planning soon. 59:28 59 minutes, 28 seconds So are we envisaging our uh MA investment will be higher than our FC and the case on balance sheet in next 3 years. 59:38 59 minutes, 38 seconds So dep the M&A acquisition sizes are not very large. So you know these are more capability add-ons we are not acquiring for scale. I mean we are not evaluating 59:47 59 minutes, 47 seconds targets for scale. There are a few geography expansion targets but as I think we mentioned in the presentation as well the evaluation cycle around 59:54 59 minutes, 54 seconds those will be more complex but in terms of the product capability there are a few ideas and areas which we are evaluating very closely and those are 1:00:02 1 hour, 2 seconds not very large acquisitions. Yeah, look I mean just if you're focusing on the kind of cash balance at the end of the 1:00:09 1 hour, 9 seconds end of the year um a couple of things or as you know we we do utilize some meaningful amount of cash on on vendor prepayments which is kind of a usual 1:00:17 1 hour, 17 seconds practice for which we get some really good commercial benefits. So that is always a good use of cash. Um and we did end the year really strongly in terms of 1:00:26 1 hour, 26 seconds cash collections. Um so a lot a lot of focus internally on that. So drove the kind of cash balance at the end of the year. 1:00:36 1 hour, 36 seconds No, I understand. And what will be the reason for low e loan case or e loan case is um meaningfully lower than let's 1:00:43 1 hour, 43 seconds say market rate. Can you provide some sense what will be the case breaker and why it is lower? 1:00:51 1 hour, 51 seconds Yeah. I mean look I mean overall interest income is up year on year. Um but we are we are looking at you looking at moving moving all our funds into kind 1:01:00 1 hour, 1 minute of higher high interest bearing kind of fixed deposits. Um but again the focus is on those uh those those other uses of 1:01:07 1 hour, 1 minute, 7 seconds cash. Um but yeah we we'll look at all of our our kind of cash balances and and optimize in the next coming quarters. 1:01:16 1 hour, 1 minute, 16 seconds Sir yield on case we have 1,400 crash other income in if I exclude forex gain it is uh not even 3%age if I do quarter 1:01:26 1 hour, 1 minute, 26 seconds 400 kind of thing and that's why I just try to understand if you can so if you can give composition of the case where 1:01:32 1 hour, 1 minute, 32 seconds we deploy our case so the page we can get back to you offline on this but uh I think what what 1:01:41 1 hour, 1 minute, 41 seconds Raj is also saying here is that you know we can reook at the treasury policy and identify what would be the ideal way to I mean the idle cash or you know the the 1:01:49 1 hour, 1 minute, 49 seconds temporarily unutilized cash what could be the best return on it it will be a bit of a treasury decision which we need to relook at so is that 1:01:58 1 hour, 1 minute, 58 seconds sure coming back to the new product side I think if I look let's say our growth versus some of the peers which are listed and 1:02:06 1 hour, 2 minutes, 6 seconds reporting number uh now we have capability uh we have platform ready but numbers 1:02:14 1 hour, 2 minutes, 14 seconds are let's say lacking in terms of uh last couple of years can you provide what kind of changes we are making now 1:02:21 1 hour, 2 minutes, 21 seconds with whatever uh because from technical capability you said we are there uh from platform perspective we are there we 1:02:29 1 hour, 2 minutes, 29 seconds have more than 3,000 enterprise client with us still the traction is not visible and I'm referring to last two 1:02:37 1 hour, 2 minutes, 37 seconds three years where become very sizable portion of some of our peers number uh can you provide let's say what changes you are making how we can participate effectively. 1:02:47 1 hour, 2 minutes, 47 seconds So Deep just to add to your question you know like uh Rajep here so we also want to make sure some of the deals on this 1:02:56 1 hour, 2 minutes, 56 seconds uh uh OD channels are profitable to the organization. It is not just I want to follow the same SMS 1:03:04 1 hour, 3 minutes, 4 seconds fundamentals on these deals. It is very critical for us if we we want to sell a solution and we want to really solve the 1:03:11 1 hour, 3 minutes, 11 seconds customer problem and customer is paying for that solutioning part and we really want to focus on this kind of customers who are paying higher margin to our 1:03:20 1 hour, 3 minutes, 20 seconds portfolio. It is not just a game of bulk messaging where I can just go and lower the price and win the use case. If that 1:03:29 1 hour, 3 minutes, 29 seconds is the case I could have grown multiffold in last few years down the line. We have taken a collective call as a group. We really want to sell our 1:03:37 1 hour, 3 minutes, 37 seconds solution as a solution company and we will solve the customer problem and customers should value the solution which we are building for them. That is 1:03:44 1 hour, 3 minutes, 44 seconds where I see is value. It's a long sticky business model we want to create out of uh OTT channels like RCS or WhatsApp or 1:03:52 1 hour, 3 minutes, 52 seconds email and we will stick to that and we will make sure and I think one of the reason if you see a growth in our uh gross margin is because of that we let 1:04:01 1 hour, 4 minutes, 1 second many other small businesses to go where we were either bleeding or we are doing lots of uh small uh low margin games. If 1:04:10 1 hour, 4 minutes, 10 seconds you onboard a customer at very large scale, trust me, you really need to spend lots of uh capex in terms of serving that customer. So there are certain calls is very very important. 1:04:20 1 hour, 4 minutes, 20 seconds Some some of the use cases of metro is a very classic use case like we are deeply integrated with that entire platform of 1:04:28 1 hour, 4 minutes, 28 seconds metro ticketing which where we are hardly getting replaced by anyone but our margins are very high on those solution. So I think end of the day you 1:04:36 1 hour, 4 minutes, 36 seconds need to see what are you trying to build and for the long term and how you going to create value to your customer. So it is not about winning that uh more volume 1:04:46 1 hour, 4 minutes, 46 seconds or increasing your revenue but it is what kind of customer you are winning and what kind of margin you're making out of that customer is very critical for us. 1:04:56 1 hour, 4 minutes, 56 seconds Yeah [clears throat] sorry said you know we are are very carefully choosing the customers. We actually 1:05:04 1 hour, 5 minutes, 4 seconds trying to ensure that the platform we provide to our enterprises that fetches the money than than pure margin play and getting into a game of uh margins and uh 1:05:13 1 hour, 5 minutes, 13 seconds dropping of prices. So our choice of customers purely basis you know what kind of u bottom lines we can draw from them and our focus is more forward 1:05:22 1 hour, 5 minutes, 22 seconds looking. So we building those solutions which will fetch us returns over a long period and and we are not going to get into complete volume game here of creating margins by pure volumes here. 1:05:31 1 hour, 5 minutes, 31 seconds Uh so one is that you know of course we are uh creating value ad on the platform to fetch us more monies and alongside we focusing on new age products you know 1:05:39 1 hour, 5 minutes, 39 seconds which is uh which perhaps you know was available only with couple of partners in the in the country. So the network API which you touched upon the ka is something which we have unique and we 1:05:48 1 hour, 5 minutes, 48 seconds don't have much competition around that and we're fairly hopeful the investments we making there along with the AI capabilities which are we are partnering 1:05:55 1 hour, 5 minutes, 55 seconds with and building on the platform will going to fetch us um good returns in the quarters to come. 1:06:03 1 hour, 6 minutes, 3 seconds What would be the market growth in this alternate channel? Uh can help us understand and let's say whether you expect in next couple of 1:06:11 1 hour, 6 minutes, 11 seconds years we will reaching to market growth rate based on the strategy which we have laid out for us. 1:06:18 1 hour, 6 minutes, 18 seconds So if you look at market expansion by OTT channels uh if you actually look at uh today roughly 60% market is dominant 1:06:25 1 hour, 6 minutes, 25 seconds by dominated by SMS and we clearly see a shift happening towards RCS and WhatsApp and all will depend how I am able to 1:06:34 1 hour, 6 minutes, 34 seconds orchestrate a customer journey on these channels uh from the pure play uh giving them uh options which are available with 1:06:41 1 hour, 6 minutes, 41 seconds the brand to concluding the sales over there. Now this is uh evolving uh you know earlier it was pure play menu based 1:06:50 1 hour, 6 minutes, 50 seconds uh you know uh workflows which were there on the u uh WhatsApp or RCS channel which is clearly moving towards AI and those are the capabilities which 1:06:58 1 hour, 6 minutes, 58 seconds we need to work work on and build a platform so that we are future ready and that's where our focus is we keeping a focus and eyes there to ensure that 1:07:06 1 hour, 7 minutes, 6 seconds we're ready and we we scale at the right time and we're keeping as I said keeping margins coming from our platform and not 1:07:12 1 hour, 7 minutes, 12 seconds purely from the OTT uh unit pricing margins in 1:07:20 1 hour, 7 minutes, 20 seconds fair point I think broadly try to understand let's say market is at 60% we are at 92%age 1:07:27 1 hour, 7 minutes, 27 seconds dependency on SMS the segment which is growing we are limited here and that's why 1:07:35 1 hour, 7 minutes, 35 seconds I think there is a firewall revenue also which is also calculated as a part of messaging okay so which is different. So 1:07:45 1 hour, 7 minutes, 45 seconds your assumptions might be different but again I'm telling you as a growth uh trigger point it is firewall network API 1:07:55 1 hour, 7 minutes, 55 seconds OTT uh channels along with email is going to also you need to understand we were uh in a from last two years doing 1:08:03 1 hour, 8 minutes, 3 seconds this integration with big and teresign which is now completely over and we do see a value in terms of how we can 1:08:12 1 hour, 8 minutes, 12 seconds create a cross-ell upsell opportunity within in the uh the group and that will also going to play a big role in upcoming quarters. 1:08:23 1 hour, 8 minutes, 23 seconds I have last two question just I give it right now and then maybe you can answer. 1:08:29 1 hour, 8 minutes, 29 seconds First is about the network API opportunity mentioned couple of times just want to understand let's say what are the size and uh scale of this opportunity or next three year 1:08:37 1 hour, 8 minutes, 37 seconds perspective India and then outside India and how you are looking across this market and second question is about uh 1:08:45 1 hour, 8 minutes, 45 seconds some of the financial data related thing we indicated some kind of trade [clears throat] return uh in the 1:08:53 1 hour, 8 minutes, 53 seconds notes can youify the number what was the number in quarter four and what led to it in terms of the uh 1:09:01 1 hour, 9 minutes, 1 second return rate receivable and what would be the OC expectation for the year. Thank you. 1:09:10 1 hour, 9 minutes, 10 seconds From ahead sorry go ahead. 1:09:23 1 hour, 9 minutes, 23 seconds So I think the idea of network API if you see it's a very early stage you know network API is a layer which is which is 1:09:30 1 hour, 9 minutes, 30 seconds within the operator ecosystem lying from very long time because of the digital fraud increase in multi 1:09:38 1 hour, 9 minutes, 38 seconds reason. I think network API is going to play a very critical role in terms of mitigating the risk of digital fraud. 1:09:44 1 hour, 9 minutes, 44 seconds And I think that is where people started believing most of the financial institution they started believing uh 1:09:51 1 hour, 9 minutes, 51 seconds that OTPless authentication could be the one right way to look use uh network API 1:09:58 1 hour, 9 minutes, 58 seconds sim uh I think there are many other KYC use cases can be used directly with the operator infrastructure it's a very 1:10:06 1 hour, 10 minutes, 6 seconds early stage to quantify but what we can see the value out of it is going to be phenomenal in uh coming quarters you 1:10:15 1 hour, 10 minutes, 15 seconds will start uh seeing some of the more use cases as what Akash education we have deployed recently we are in talks with multiple customer uh as an 1:10:24 1 hour, 10 minutes, 24 seconds initiative of conera product launched by proximos global so we may not quantify at this point of time but I as far as 1:10:32 1 hour, 10 minutes, 32 seconds the potential is concerned on network API is huge that's what I can tell you and on the other side other question bin 1:10:39 1 hour, 10 minutes, 39 seconds or tushar if you can just add yes so on the financial receivables. Raj, you want to take that? 1:10:45 1 hour, 10 minutes, 45 seconds Yeah, look, I mean, in terms of receivables, it was um I mean, the total quantum is is is less than less than 5CR. Um, but it's it's a range of 1:10:54 1 hour, 10 minutes, 54 seconds smaller customers. So, so no one big individual customer, but more of a cleanup exercise. Um, I mean, some of some of the I think an average is 1:11:02 1 hour, 11 minutes, 2 seconds probably about 10 or 15 lakhs per per customer. So, so a bit of a cleanup exercise there. So, no no big one item. 1:11:10 1 hour, 11 minutes, 10 seconds Yeah, it stands at I think 0.4% of revenues, right? not significant. 1:11:16 1 hour, 11 minutes, 16 seconds Thank you Deep. Next question is from the line of Shugam Jin. Please go ahead. 1:11:31 1 hour, 11 minutes, 31 seconds Hello. Am I audible? Yes, we can hear you. Yes. Go ahead. 1:11:34 1 hour, 11 minutes, 34 seconds Sir, uh uh I believe my questions are answered but I just had a few small queries. So firstly you have mentioned 1:11:42 1 hour, 11 minutes, 42 seconds that the worst is behind us but I don't see any sign of uh growth in your revenue. 1:11:50 1 hour, 11 minutes, 50 seconds uh I mean if we see Tanla as a peer it has grown relatively better than us and 1:11:57 1 hour, 11 minutes, 57 seconds what's the cause for that and secondly uh when we enter into partnerships with our global partners what type of 1:12:05 1 hour, 12 minutes, 5 seconds arrangements are we getting into and uh so third is network are you are you talking about the revenue or like what comparison uh 1:12:12 1 hour, 12 minutes, 12 seconds you're doing so from a revenue as well as uh a margin point of view I believe they are in 1:12:19 1 hour, 12 minutes, 19 seconds similar First first first to just correct your uh understanding on revenue side because we are not here to talk about any other company. We can talk 1:12:28 1 hour, 12 minutes, 28 seconds about uh root mobile. I think uh in terms of revenue overall revenue I think we are the largest right now in India 1:12:36 1 hour, 12 minutes, 36 seconds and uh we cannot comment on how others are growing and what we can talk about is root mobile in this call. So I 1:12:44 1 hour, 12 minutes, 44 seconds request everyone please stick to root mobile. Any question related to root mobile and our growth story we are happy to answer those thing. 1:12:51 1 hour, 12 minutes, 51 seconds Sure sir. So second would be that you have mentioned the worst is behind us but uh 1:12:59 1 hour, 12 minutes, 59 seconds uh but the guidance that you have provided for FI27 doesn't really indicate uh any sign of recovery. I mean 1:13:08 1 hour, 13 minutes, 8 seconds from 11.9 to 12 I don't think that's a that's even a growth or any 1:13:16 1 hour, 13 minutes, 16 seconds please help me understand I mean what's happening inside the company or what sort of sort of uh expectations do you 1:13:24 1 hour, 13 minutes, 24 seconds actually have sorry I'm just new to the business so I'm trying to understand what's happening sure Shubam so let me take that and then 1:13:33 1 hour, 13 minutes, 33 seconds probably Tushar Raji please add in but if you look at the numbers you know what we have been saying is that what has been what has gone out of the system was 1:13:41 1 hour, 13 minutes, 41 seconds revenue which comes at significantly higher realization rates which is being replaced by domestic business in various markets and in most of the markets 1:13:49 1 hour, 13 minutes, 49 seconds domestic rates are significantly lower than what rates would be. So that means replacing a single message with a 1:13:57 1 hour, 13 minutes, 57 seconds significantly larger volume of domestic traffic. So that is where you know the growth rates will take some time to start looking like bigger numbers 1:14:06 1 hour, 14 minutes, 6 seconds because the base effect will creep I mean the basis base effect will start creeping in now. So so that is where you know the the growth rates for the next 1:14:14 1 hour, 14 minutes, 14 seconds year are where we are looking at and as Rajd pointed out earlier the the internal initiatives are designed towards idly you know achieving 1:14:22 1 hour, 14 minutes, 22 seconds something above those growth rates. So, so that is where we are targeting but but essentially what we are saying is in the most likely scenario is what we've 1:14:30 1 hour, 14 minutes, 30 seconds indicated in the guidance and that is where we are driving aggressively towards sir and could you give us an overview of 1:14:37 1 hour, 14 minutes, 37 seconds what was the product mix before all those headwinds arrived and what has been the product mix currently and what 1:14:46 1 hour, 14 minutes, 46 seconds is your expectation of it changing sure so sham on the product mix there's one more point which I need to clarify which probably missed out in some of the 1:14:53 1 hour, 14 minutes, 53 seconds other responses earlier. So on the product mix on WhatsApp particularly if you look at it in India we have seen volume increase happening for us. So in 1:15:02 1 hour, 15 minutes, 2 seconds terms of volume it has gone gone higher in terms of contribution but the pricing on WhatsApp itself was revised during the year. So that is where the 1:15:09 1 hour, 15 minutes, 9 seconds realizations went low. So the revenue growth is not really reflective of the kind of business that we are winning on WhatsApp. So that is one challenge in 1:15:16 1 hour, 15 minutes, 16 seconds terms of that 8% of revenue coming from non SMS products. slightly it should have been higher if the pricing had remained steady and moving forward I 1:15:25 1 hour, 15 minutes, 25 seconds think we are not giving a product wise guidance but we are looking at good growth around those products the nonsw product portfolio 1:15:33 1 hour, 15 minutes, 33 seconds okay sir uh so lastly what's our exposure currently uh in the overall revenue mix so I think I mentioned it earlier on the 1:15:41 1 hour, 15 minutes, 41 seconds call it's around a quarter to one/ird of the revenue in somewhere in that range so is it bound to eventually reduce more or uh so ideally you know we would want We 1:15:50 1 hour, 15 minutes, 50 seconds would want the contribution of other products to increase and that would automatically take lower but it will not be a one year or a two-year uh outcome 1:15:58 1 hour, 15 minutes, 58 seconds because the volumes are large. It'll take time for that contribution to go down significantly but because we are driving growth through other channels you would expect that to gradually you know keep shrinking. 1:16:09 1 hour, 16 minutes, 9 seconds Okay. And so lastly I I believe I asked a question earlier on the type of arrangements that we have with our 1:16:16 1 hour, 16 minutes, 16 seconds global partners. Could you elaborate on that as in uh from a I mean from a uh how do we share our revenues? How do we pay them? 1:16:27 1 hour, 16 minutes, 27 seconds If you could help us understand. 1:16:29 1 hour, 16 minutes, 29 seconds Sorry, are you referring to uh I mean our go-to market partnerships that we have with other system integrators and ISVS or I mean sorry I not get which partnerships you're referring to. 1:16:40 1 hour, 16 minutes, 40 seconds I think proximity and all of that you have mentioned. 1:16:43 1 hour, 16 minutes, 43 seconds Okay. So those are those are clearly related party transactions which are defined through agreements at armslength basis. So the way it works is I'll give 1:16:52 1 hour, 16 minutes, 52 seconds you an example of what we do with Telesign. So Telesign needs to send a lot of SMS traffic into India and other markets where root mobile is able to 1:17:00 1 hour, 17 minutes provide them the best cost. So we have our cost and we have agreements which define how much we can mark up those costs and we charge Teresign in Bix when 1:17:10 1 hour, 17 minutes, 10 seconds they send us that traffic. So it's well defined in the rated party agreements where and it is all transaction oriented per transaction we charge them and we charge a margin on top of our cost. 1:17:22 1 hour, 17 minutes, 22 seconds Okay sir that's it from my end. Uh if I have I'll get back to the Thank you sir. 1:17:28 1 hour, 17 minutes, 28 seconds Thank you Sham. Next question is from the line of Kunal Oji Ramani. Please go ahead. 1:17:38 1 hour, 17 minutes, 38 seconds Am I audible? Yes, we can hear you. Please go ahead. 1:17:46 1 hour, 17 minutes, 46 seconds So revenue per billable transaction fell from 29 pesa to 25 pesa which is 14% 1:17:54 1 hour, 17 minutes, 54 seconds decline in a single year and domestic SMS Indian pricing has come to 10 pesa per message and operators are capturing 1:18:03 1 hour, 18 minutes, 3 seconds 70 to 80% of messaging economics as source. So RCS is being priced below SMS 1:18:10 1 hour, 18 minutes, 10 seconds for some players to gain share which are uh which you also agree that is distorted pricing. So my question is 1:18:19 1 hour, 18 minutes, 19 seconds what exactly is the pricing floor for A2P SMS in India and do you believe that RCS will repric upwards once operators 1:18:28 1 hour, 18 minutes, 28 seconds set up floor or will it simply commoditize at SMS level and compromise your blended realization further and 1:18:36 1 hour, 18 minutes, 36 seconds also just wanted to understand when you say that you have an assumption that our revenue will grow at mid to higher 1:18:44 1 hour, 18 minutes, 44 seconds single digit what kind of pricing revenue per transaction we are taking for FI 27 versus FI 26. This is my first question. 1:18:54 1 hour, 18 minutes, 54 seconds Tuk canal. Um the RC spicing you just touched upon is largely because there's no interconnect arrangement among the telos. For the first year when Google 1:19:03 1 hour, 19 minutes, 3 seconds launched the service there was some understanding but uh there still among the telos when they terminate messages on the other network uh there absolutely 1:19:11 1 hour, 19 minutes, 11 seconds no charges. For those reasons there was some degree of flexibility on quoting the pricing to the uh markets but I guess that's changing now. There is what 1:19:19 1 hour, 19 minutes, 19 seconds we hear that there is some discussion which is uh happening among telos which will uh definitely take the prices upwards. So we hopeful that uh this will 1:19:27 1 hour, 19 minutes, 27 seconds help the market uh and this will not cannibalize uh as you correctly mentioned the the A2 SMS market. um an overall uh V you'd like to add. 1:19:38 1 hour, 19 minutes, 38 seconds Sure. So in terms of you know the pricing that you mentioned how have we taken it in the in the guidance that we provided. So Kunal it is a little bit 1:19:45 1 hour, 19 minutes, 45 seconds more complicated at our end because India is one part of the business but then we also have business in some of the other geographies. So the way we 1:19:52 1 hour, 19 minutes, 52 seconds really do our planning is you know we have individual business teams that look at various markets different categories of uh customers and uh we do a bottomup 1:20:01 1 hour, 20 minutes, 1 second buildout. when we look at a plan for the subsequent year and that is how we have approached it. So it's it's a mix of various parameters you know said 1:20:10 1 hour, 20 minutes, 10 seconds so it's it's basically looking at customer editions in certain markets mix is also changing. So there are various moving parts there but but the basic way 1:20:18 1 hour, 20 minutes, 18 seconds we've done it is you know certain customer volume assumptions and uh pricing for those customers that's how we really arrived at the guidance and largely because the volume base is 1:20:27 1 hour, 20 minutes, 27 seconds growing with domestic markets where we earlier mentioned the pricing is uh is much lesser compared to the so we do not 1:20:35 1 hour, 20 minutes, 35 seconds expect a dramatic shift upwards [snorts] uh in the unit pricing or unit realizations you know on the revenue side 1:20:45 1 hour, 20 minutes, 45 seconds My second question is our growth implies that we will again grow at mid to higher single digit while Indian Cass market is 1:20:54 1 hour, 20 minutes, 54 seconds essentially volume saturated domestically like every large enterprise is already using it. OTP growth is 1:21:01 1 hour, 21 minutes, 1 second slowing as app based authentication expands for non-financial use cases and new volume is only coming from 1:21:09 1 hour, 21 minutes, 9 seconds geographic exam expansion or market share shifts. So given this how do we see genuine long-term CGR assumption for 1:21:17 1 hour, 21 minutes, 17 seconds next five years? What percentage of growth will come from India? 1:21:20 1 hour, 21 minutes, 20 seconds So kunal and international kunal as we have already laid down in our presentation we are opening up new 1:21:29 1 hour, 21 minutes, 29 seconds geographies. We are setting up a new office in the different uh locations. 1:21:34 1 hour, 21 minutes, 34 seconds Different domestic [clears throat] market is going to be our new focus. 1:21:36 1 hour, 21 minutes, 36 seconds some of the product line which we just shared uh whether it's uh OTT or SMS or 1:21:43 1 hour, 21 minutes, 43 seconds email I think we do have a plan and the firewall solution along with network API all this see even if you see that there 1:21:51 1 hour, 21 minutes, 51 seconds is a drop in SMS volume but the digital use cases are increasing day by day in almost all the emerging countries and we 1:21:59 1 hour, 21 minutes, 59 seconds as a company already well positioned ourself in most of the emerging countries including the latm as well right so I think we do see potential in 1:22:07 1 hour, 22 minutes, 7 seconds terms of overall growth. Uh the way we are working on our strategy right now there are certain market in uh Latin 1:22:15 1 hour, 22 minutes, 15 seconds America like a Mexico, Brazil is a big market where we definitely trying to do something over there. Philippines is another market for us. Australia is 1:22:22 1 hour, 22 minutes, 22 seconds going to definitely different market for us. So I think all these things will definitely add uh overall growth story. 1:22:29 1 hour, 22 minutes, 29 seconds So for us like root mobile is not a Indiacentric company. We always serve customer globally including Middle East, Africa 1:22:38 1 hour, 22 minutes, 38 seconds and we do see believe that digital adoption in these markets are going to increase multiffold especially in Latin and Africa and we will definitely get 1:22:47 1 hour, 22 minutes, 47 seconds advantage of those growth in coming years. 1:22:55 1 hour, 22 minutes, 55 seconds So lastly, these questions have been pressed a lot of times by investors in previous calls also since half of our 1:23:02 1 hour, 23 minutes, 2 seconds enterprise value is still in cash and we are generating some 600 crores operating cashally 1:23:09 1 hour, 23 minutes, 9 seconds and if we are at the same run rate uh in next 3 to 5 years our cash balance will significantly exceed our enterprise 1:23:18 1 hour, 23 minutes, 18 seconds value. So can you tell us specifically in order of priority what what would you intend to do with this capital if M&A 1:23:26 1 hour, 23 minutes, 26 seconds pipeline what geographies and if no M&A materializes in next 18 to 24 months 1:23:33 1 hour, 23 minutes, 33 seconds will board consider special dividend or buyback or and critically is this capital allocation decision made is made 1:23:40 1 hour, 23 minutes, 40 seconds by root mobile board independently or does it require Proximus group sign off given their 75% ownership and their uh 1:23:47 1 hour, 23 minutes, 47 seconds they have a huge debt burden also No, no, not at all. Every decision is made by root mobile board and there is a 1:23:54 1 hour, 23 minutes, 54 seconds representative of Proximus Global as a part of the root mobile board. The root mobile board is capable enough to take call on behalf of root mobile. We have a 1:24:04 1 hour, 24 minutes, 4 seconds very uh smart uh board members. They do understand business. They contribute to our day-to-day growth. And as far as the 1:24:11 1 hour, 24 minutes, 11 seconds cash is concerned as we already mentioned and there are multiple discussion we are having on various uh many times uh in a year that how to use 1:24:20 1 hour, 24 minutes, 20 seconds this cash uh acquisition could be the first choice but there could be all other discussion which which you have shared uh as and when when we come to 1:24:29 1 hour, 24 minutes, 29 seconds some conclusion we will definitely uh come back to you but if you read our uh uh update I think from this financial 1:24:37 1 hour, 24 minutes, 37 seconds year we have increased our dividend to 16 rupees. is uh 16.5 rupees from 11 rupees. So we are definitely trying to 1:24:45 1 hour, 24 minutes, 45 seconds create value to our shareholders and that is one of the priority for us in coming years down the line as well. 1:24:52 1 hour, 24 minutes, 52 seconds Understood sir. Even after we are generating 600 K of cash and as committed dividend will be 104 crores. 1:24:59 1 hour, 24 minutes, 59 seconds We will still have some 4 500 crores operating cash flow or free cash flow every year after dividends and this pi will eventually increase. So I hope that 1:25:08 1 hour, 25 minutes, 8 seconds uh board considers it and thanks to investors. We will definitely sure. 1:25:16 1 hour, 25 minutes, 16 seconds Thank you so much. This was very unful. 1:25:22 1 hour, 25 minutes, 22 seconds Thank you ladies and gentlemen. That was the last question. 1:25:26 1 hour, 25 minutes, 26 seconds This concludes our conference. Please feel free to share your unanswered questions to investors at rootmo.com. 1:25:33 1 hour, 25 minutes, 33 seconds Thank you for joining us and you may disconnect your lines.