Tata Communications Limited — Q4 FY26

Tata Communications Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=aVTQoNg-g_s Published: 3 weeks ago

0:00 Ladies and gentlemen, good evening and welcome to the Tata Communications Limited Q4 FI26 earnings conference call. 0:09 9 seconds The results for the quarter ending 31st March 2026 have been announced and the data pack is available on our website. 0:17 17 seconds Please note all participant lines will be in the listenon mode and this conference is being recorded. We have with us from the management team Mr. 0:26 26 seconds Ganesh Lakshmi Narayan MD and CEO designate Mr. Kabir Ahmed Shakir CFO Mr. Sadhhat 0:35 35 seconds Mundra CFO designate Mr. Rajiv Sharma head of investor relations and Mr. 0:41 41 seconds Seshna Padnai DGM investor relations we will begin the call with opening remarks from Ganesh on the business 0:48 48 seconds performance and outlook followed by Sedat on the company's business and financial performance. Post that we will open the floor for questions for the 0:57 57 seconds management. In the event that the management line drops, we request participants to stay connected while we reconnect them to the meeting. 1:05 1 minute, 5 seconds Some of the statements made in today's call may be forward-looking in nature and are subject to risks and uncertainties. The company does not 1:13 1 minute, 13 seconds undertake to update these forward-looking statements publicly. 1:18 1 minute, 18 seconds I now hand the call over to Ganesh. Over to you, sir. 1:21 1 minute, 21 seconds Thanks, Inva. Thank you. Good evening everybody and thanks you for joining our Q4 and fully year FI26 earnings call. 1:29 1 minute, 29 seconds This is my first call as CEO and MD of this remarkable organization. 1:35 1 minute, 35 seconds It's a big privilege for me to lead Tara Communications in its next phase of growth. 1:41 1 minute, 41 seconds I would like to start by extending my sincere appreciation for Lakshmi Naran who is a prior CEO. on behalf of the 1:49 1 minute, 49 seconds board and the entire organization, I want to thank Laxmi for his remarkable contribution to this great institution. 1:57 1 minute, 57 seconds I also want to thank um Kabir for his discipline execution over the last many years. I wish the best to him in his 2:05 2 minutes, 5 seconds future endeavors. Kabir is on the call today. I'm very glad he's joining today on the call. Given it is his last 2:13 2 minutes, 13 seconds earning call, we have decided that we will deflect all the tough questions to him. So keep your questions ready. I'm 2:21 2 minutes, 21 seconds also pleased to welcome Sedat who will be taking over from Kabir. 2:26 2 minutes, 26 seconds Rajie uh my investor relations head is looking at me very anxiously. He and his team have been prepping me and Sid for 2:34 2 minutes, 34 seconds this call and one of the questions he wanted me to have an answer was Ganesh what's your northstar for data 2:40 2 minutes, 40 seconds communication? So I told him, Rajiv, I'm sure people on the call are smart enough to know that I'm still finding my way 2:47 2 minutes, 47 seconds around our corporate headquarters in BKC with just 10 days into the job after Laxshmi left. 2:54 2 minutes, 54 seconds I'm not ready to point to any notar. But however, I told him I will share three important things. 3:02 3 minutes, 2 seconds One, the most important one is what am I learning? I've been spending about that's about 45 days I'm spending with the team and the customers. 3:12 3 minutes, 12 seconds why I joined Tara Communication and my excitement about the long-term future of Tara Communications. In a way, it's my 3:19 3 minutes, 19 seconds personal investment thesis to stay long on this company. 3:24 3 minutes, 24 seconds Third, I will also share my views on near to medium-term. So, let me go through all of this three before we talk about FI26 and Q4. 3:35 3 minutes, 35 seconds Over the past few weeks, it's been an exciting time for me. We have been meeting customers across markets, across geographies, 3:44 3 minutes, 44 seconds engaging closely with our teams and spending time across our businesses. I am learning a lot. 3:53 3 minutes, 53 seconds One thing I am very very excited about is all the customers I have met, I met close to two dozen customers so far. 4:01 4 minutes, 1 second They have told me unanimously that Tata Communications is their preferred partner. 4:06 4 minutes, 6 seconds It reflects in our NPS. Our score is 83 and particularly in the India market, we have an NPS score of 95. 4:17 4 minutes, 17 seconds It's truly a golden benchmark among the peers in this industry. 4:22 4 minutes, 22 seconds The second thing I heard from them is they want us to work across their digital infrastructure. 4:31 4 minutes, 31 seconds They're expecting TA communications to bring the trusted infrastructure that will get them ready for the AI transformation. 4:39 4 minutes, 39 seconds What I also see is that we are truly uniquely positioned as a global com player. As a global comp tech player, 4:48 4 minutes, 48 seconds today we serve more than 50% of the global Fortune 500 companies. 4:54 4 minutes, 54 seconds I am told close to 60% of our revenue comes from international markets. 5:00 5 minutes We have a very broad portfolio as a comp techch player. Our digital platforms are now for the first time trending more 5:06 5 minutes, 6 seconds than 50% of our data revenue. So I am learning a lot. We are taking care of our customers. We have a broad 5:13 5 minutes, 13 seconds portfolio. We are truly uniquely positioned as a global compact player. 5:18 5 minutes, 18 seconds Let me talk about the second one which is my long-term excitement about what's happening in the industry. 5:27 5 minutes, 27 seconds I personally see that there are two big trends shaping the future and I firmly believe that we are uniquely poised to capture those two 5:36 5 minutes, 36 seconds trends. One, if you look at all of our markets in markets like India, Indonesia in the 5:43 5 minutes, 43 seconds developing markets, we see the customer front end is digitized. When I say customer front end tends to digitize, we 5:50 5 minutes, 50 seconds can buy groceries online. We can trade shares online. We can, you know, order shoes online. But the back end is still 5:59 5 minutes, 59 seconds yet to be digitized. The supply chain, the factories, the logistics, warehouses, you know, my favorite example is that during COVID times, you 6:07 6 minutes, 7 seconds know, we could order pizza online and get it tracked every minute, but we couldn't we didn't know how where our oxen cylinders were. I think there is a 6:15 6 minutes, 15 seconds big opportunity in lot of these markets where the back end of the country is still need to be digitized. This is a 6:21 6 minutes, 21 seconds white space where our network, our cloud, our edge capabilities will position us strongly. The second trend 6:30 6 minutes, 30 seconds which is happening is the AIE transformation. 6:34 6 minutes, 34 seconds If you look at what's happening in AI, the real ROI of all AI investments when it comes when the AI is working 6:42 6 minutes, 42 seconds with enterprise intelligence, enterprise data and that architecture is evolving very very fast. You will know that for AI to 6:51 6 minutes, 51 seconds work effectively, you need constant training and that training is happening centrally and the inference is moving to the edge 7:01 7 minutes, 1 second and this needs a unified infra. It needs an AI ready connectivity which is higher 7:07 7 minutes, 7 seconds bandwidth, higher speed but also something which will move at expected speed all the time. 7:18 7 minutes, 18 seconds It'll also need that it will be compute will be closer to the end customer to to these two trends to power 7:27 7 minutes, 27 seconds enterprise AI at scale and digitize the supply chain. 7:32 7 minutes, 32 seconds Our customers will need the unified infra from a trusted partner. 7:39 7 minutes, 39 seconds That is what auto communication is all about. 7:42 7 minutes, 42 seconds We are uniquely combining our network backbone, our cloud and security infra and our new commotion AI enabled 7:51 7 minutes, 51 seconds interaction fabric to pull the programmable infra platform which will power enterprise AI at scale globally. 7:59 7 minutes, 59 seconds So the long-term these two strengths will create demand and with the broad portfolio we have built 8:08 8 minutes, 8 seconds we are poised to capture that effectively. 8:12 8 minutes, 12 seconds Let me go through the near to medium-term view. 8:17 8 minutes, 17 seconds You know, we believe and you all have been here that we have gone through two distinct phases in the last five to six years. 8:26 8 minutes, 26 seconds In the first phase of it, we got financially fit. We built a disciplined balance sheet. 8:34 8 minutes, 34 seconds You have seen those results. 8:37 8 minutes, 37 seconds And we used that balance sheet in the second phase where invested organically and 8:44 8 minutes, 44 seconds inorganically to build our digital fabric. 8:49 8 minutes, 49 seconds We believe we are entering a phase where we will prioritize profitable growth. 8:57 8 minutes, 57 seconds As we evaluate the strategic choices, our focus on discipline capital allocation will continue. 9:08 9 minutes, 8 seconds So as a management team me and Sid's immediate priority is ensuring continuity in strategy, 9:18 9 minutes, 18 seconds strengthening the execution momentum and delivering profitable growth and I'm happy to share that our Q4 and 9:27 9 minutes, 27 seconds FI26 results are in the right direction for the full year of FI26. 9:36 9 minutes, 36 seconds Data growth came in at 9.4%. 9:41 9 minutes, 41 seconds Our digital portfolio grew by almost 17% at 16.7%. 9:47 9 minutes, 47 seconds The growth momentum was visible across the board for the digital platforms. But my personal call out is our nextg 9:54 9 minutes, 54 seconds connectivity platforms is leading the pack at 24% growth year-over-year 10:02 10 minutes, 2 seconds on this quarter's performance. I'm sure it will bring smile to all your faces. 10:06 10 minutes, 6 seconds The data revenue for the quarter was up 6.1% quarter over quarter. 10:13 10 minutes, 13 seconds The digital portfolio was almost up 10% quarter over quarter at 9.4%. 10:19 10 minutes, 19 seconds And the core connectivity again my favorite grown by 2.8% quarter over quarter. 10:26 10 minutes, 26 seconds So as you could see the growth was strong across the portfolio especially our interaction fabric both 10:33 10 minutes, 33 seconds employee interaction and customer interaction did really well this quarter also we also saw growing 10:40 10 minutes, 40 seconds traction in our AI cloud and increasing adoption of our commercial AI platform 10:47 10 minutes, 47 seconds on the funnel it continues to be robust 70% of the open funnel comes from our digital fabric 10:54 10 minutes, 54 seconds I'm also pleased pleased to share that our order booking for the quarter has been healthy double digit year-over-year growth. Now, our international order 11:02 11 minutes, 2 seconds book has been particularly strong this quarter. 11:06 11 minutes, 6 seconds Let me talk about some of the wins. I think that brings color to our performance. See one thing we are very 11:13 11 minutes, 13 seconds pleased about is network transformation was a key theme for this quarter 11:20 11 minutes, 20 seconds especially our ISO hybrid van has been a big win across regions. 11:26 11 minutes, 26 seconds We closed multiple wins. We displaced incumbents and modernized legacy networks of our customers. Especially I 11:34 11 minutes, 34 seconds want to call out two notable wins in the UK region. one with a global wine major and one with a large automotive services 11:42 11 minutes, 42 seconds player. I think these wins bring the best of what we have. We have the global fiber footprint. 11:49 11 minutes, 49 seconds We have integrated services and we have a softwaredefined platform which is making these wins possible. 11:58 11 minutes, 58 seconds I also want to go a little deeper into few wins which actually truly brings out the power of the multi-tower portfolio 12:07 12 minutes, 7 seconds we have built. You know one example is a leading global bank. 12:12 12 minutes, 12 seconds They selected us to establish their global capability center GCC in India. It's a true digital fabric win 12:21 12 minutes, 21 seconds which included both our network fabric and the interaction fabric. 12:26 12 minutes, 26 seconds This proves our ability to enable GCC's with secure cloud ready globally connected network environment. It also 12:34 12 minutes, 34 seconds seamless allows seamless collaboration between India hubs and their employees old and as the GCC's continue to grow in 12:42 12 minutes, 42 seconds India. It helps us to capitalize on that growth. 12:46 12 minutes, 46 seconds The second win is we won a multi-million dollar multi-year deal in APAC with the global bank and this is the exciting product ISO multicloud. 12:57 12 minutes, 57 seconds It connects across four locations and MCC provides direct low latency and with the fiber 13:05 13 minutes, 5 seconds backbone we have we can provide sub 3 millisecond latency to major clouds and it also lowers the eress cost of our customers. 13:15 13 minutes, 15 seconds It's a scalable interconnect platform for large multi cloud environments. You know, most enterprise customers are 13:22 13 minutes, 22 seconds working with multiple clouds and this ISO multicloud connect is a big value ad for our customers. The third win I want 13:30 13 minutes, 30 seconds to call out is a large managed secure edge services win for a leading life insurance company 13:40 13 minutes, 40 seconds across 155 location. We demonstrated the strength of our integrated collaboration offering. We combined an UKcast 13:48 13 minutes, 48 seconds platform, devices, network, managed services to deliver a superior user experience and with tangible cost 13:56 13 minutes, 56 seconds benefits for customers. These three wins, you know, hopefully shows the power of our portfolio and how is it winning in the market. 14:07 14 minutes, 7 seconds Let me close by saying, you know, we are truly better positioned to serve global enterprises 14:15 14 minutes, 15 seconds with the unified infra they're going to need for AI transformation. We are uniquely combining our network fabric, 14:22 14 minutes, 22 seconds our cloud and security fabric and our AI enabled interaction fabric into a programmable platform which will power enterprise AI at scale. 14:32 14 minutes, 32 seconds In the short to medium term, we will get stronger with focus growth on profitability and capital discipline. 14:40 14 minutes, 40 seconds I will now hand over to Sedat to take you through the financial performance in more detail. 14:45 14 minutes, 45 seconds Thank you Ganesh. It's a real pleasure to be a part of Tata Communications. 14:51 14 minutes, 51 seconds Let me start with the full year performance. The FI26 consolidated revenue came in at rupes 24,83 crores up by 7.3% YI. 15:03 15 minutes, 3 seconds Data revenues came in at rupees 21,352 crores up 9.4% Yi. 15:11 15 minutes, 11 seconds The Q4 FY26 consolidated revenue came in at rupees 6,554 15:18 15 minutes, 18 seconds crores growing 5.9% Qoq and 9.4% 4% yi the top line has certain forex benefits 15:26 15 minutes, 26 seconds acrewing from a strengthening dollar normalizing for the same the revenue growth stood at 3.8% 8% on Qoq and 3.7% on a YI basis. 15:40 15 minutes, 40 seconds Data revenue for the quarter came in at rupees 5,684 crores growing 6.1% Qoq and 11.5% YI. 15:50 15 minutes, 50 seconds As we look ahead, we expect the momentum to continue even as we remain mindful of potential near-term headwinds arising from geopolitical developments in West Asia. 16:01 16 minutes, 1 second FI26 consolidated EIDA came in at rupees 4,822 crores up 5.5% YI. 16:10 16 minutes, 10 seconds Eida margins for the full year were at 19.4%. 16:14 16 minutes, 14 seconds Around 30 bits lower on a YI basis. The decline in margins were primarily driven by a shift in the data revenue mix. 16:24 16 minutes, 24 seconds A bidder for the quarter came in at rupes 1,284 crores up 4.5% Qoq and 14.4% Yi. Our 16:35 16 minutes, 35 seconds Eida margins for the quarter were at 19.6%. 16:39 16 minutes, 39 seconds Lower by 25 bits Qoq and 86 bits on a YI basis. 16:44 16 minutes, 44 seconds Data Evida for the quarter came in at rupees 1,048 crores up 3.4% Qoq and 16:51 16 minutes, 51 seconds 17.6% 6% YI data aida margin for the quarter stood at 18.4% 17:00 17 minutes down 47 bits Qoq and up 96 bits Yi the digital margin in this quarter has shown 17:07 17 minutes, 7 seconds improvement and we will continue to monitor to see how these sustain FY26 full year pad for the continuing 17:15 17 minutes, 15 seconds business stood at 1,044 crores down 35.8% 8% on a YI basis. 17:24 17 minutes, 24 seconds Last year's PAT had profits from sale of assets. Adjusted for this, the FY26 PAT has grown by 8.1% on a YI basis. 17:37 17 minutes, 37 seconds PAT for the quarter came in at rupees 263 crores, lower by 28% on Q and 65% on a YI basis. 17:48 17 minutes, 48 seconds Q4 tax rate is higher primarily due to tax incidences pertaining to certain one-offs and prior period items in foreign jurisdictions. 17:58 17 minutes, 58 seconds The FI26 consolidated free cash flow was at rupees 1,474 crores which is almost 4x of the FI25 18:07 18 minutes, 7 seconds levels driven by tax refunds and better working capital management. 18:13 18 minutes, 13 seconds FCA for the quarter stood at rupees 828 crores lower on a QQ basis primarily 18:21 18 minutes, 21 seconds because of the tax refunds that came in last quarter. 18:24 18 minutes, 24 seconds Cash capex for this quarter stood at rupes 718 crores. Our FI26 consolidate 18:31 18 minutes, 31 seconds cash capex is at rupees 2,433 crores and remains within our range of 9 to 10% of overall sales. 18:41 18 minutes, 41 seconds We ended the year with net debt of rups 9,601 crores driven lower by better working capital management. The net debt to epida stood at 1.99x. 18:53 18 minutes, 53 seconds ROC came in at 14.9% which was up 51 basis points on a QQ basis. Our ROC is based on 12 month rolling numbers. 19:04 19 minutes, 4 seconds On the subsidiaries, the TCTS revenue for the quarter came in at 198 crores, up 3.9% on a Qoq basis and down 33% on a 19:14 19 minutes, 14 seconds Y basis. Evida margins improved to 23.3%. 19:19 19 minutes, 19 seconds TCR revenue for the quarter came in at rupees 235 crores up 8.4% QoQ and 30.1% 19:27 19 minutes, 27 seconds on a YI basis. Aida margin stood at 60.2%. 19:33 19 minutes, 33 seconds Overall, it was a very satisfactory quarter with robust digital revenue growth, improving ROC and net debt to 19:39 19 minutes, 39 seconds AIDA coming down below 2x and digital losses trending downwards. 19:45 19 minutes, 45 seconds I will now ask the operator to open the forum for Q&A. Thank you very much, sir. 19:53 19 minutes, 53 seconds Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may click on the raise hand icon from the 20:01 20 minutes, 1 second participant tab on your screen. We request our participants to please restrict to two questions and then return to the queue for more questions. 20:10 20 minutes, 10 seconds To rejoin the queue, you may click raise hand icon again. 20:14 20 minutes, 14 seconds We will wait for a few seconds until the question queue assembles. 20:22 20 minutes, 22 seconds We take the first question from Sanjay Jane of ICS securities. Please go ahead. 20:30 20 minutes, 30 seconds Yeah. Uh good evening. Uh hopefully you can hear me. Yes. Yes. Sanjay, we can hear you. Sanjish. 20:37 20 minutes, 37 seconds Thanks. Thanks. 20:39 20 minutes, 39 seconds Uh thanks for the opportunity. uh Ganesh you covered a lot of things which I thought I will ask in your opening 20:46 20 minutes, 46 seconds statement but one small probably if you would have dwelt on it I you said you have met over two dozen customers 20:55 20 minutes, 55 seconds hopefully I have met a customer who is unsatisfied and what is one complaint or a an opportunity or a challenge you are 21:04 21 minutes, 4 seconds hearing from a customer which Tataccom need to address probably in next one to three year and again what will be your priority uh for next 1 to two 3 years. 21:14 21 minutes, 14 seconds Yeah. 21:17 21 minutes, 17 seconds So um on the priority for next two to three years Sanjish you have to 21:24 21 minutes, 24 seconds give me a little bit of time after I finish 100 days I will come and talk about FI27 definitely want to come and 21:30 21 minutes, 30 seconds talk about our long-term priorities immediately after that I think um I I'm still learning a lot so I will I'll come 21:39 21 minutes, 39 seconds back on the longer term priorities um the conversations with my customers ers 21:46 21 minutes, 46 seconds what is very encouraging for me is they're not just talking about connectivity. So I'll give you an example of an insurance customer I met. 21:58 21 minutes, 58 seconds The conversation was around how can we build AI agents who can operate as relationship managers for their field service agents. 22:10 22 minutes, 10 seconds So there's an expectation that TACOM can serve them to scale enterprise AI 22:18 22 minutes, 18 seconds and we have all the ingredients to do that. We have the commotion platform which can help them build the voice AI solution. 22:28 22 minutes, 28 seconds We have the multicloud connect platform to make sure that those AI agents can connect with all the enterprise data they need. 22:39 22 minutes, 39 seconds We have the connectivity platform to make sure that all the insurance branches can make use of those AI agents. 22:49 22 minutes, 49 seconds I think the customers want us to say yes more often and say yes across the digital portfolio. It's very encouraging 22:58 22 minutes, 58 seconds to hear they're expecting Tata Communications to help them to scale enterprise AI with a broad portfolio we have built. 23:08 23 minutes, 8 seconds Customers want us to do more and um we need to do a better job of 23:16 23 minutes, 16 seconds explaining the full portfolio we have built in a truly integrated fashion. I think they're pleasantly surprised 23:23 23 minutes, 23 seconds that we have all these capabilities. I think our immediate priority is to make sure 23:30 23 minutes, 30 seconds that we tell the story of the integrated unified infra which can power enterprise scale AI. 23:41 23 minutes, 41 seconds Uh that's that's that's clear Ganesh but you have you are coming from a global company which has a large AI portfolio. 23:49 23 minutes, 49 seconds Now when you look at data communication, how do you see the preparedness for uh transition or providing these AIEL 23:57 23 minutes, 57 seconds services which you appear to be uh very confident and excited about? But from a preparedness from an organization perspective, where are we? 24:08 24 minutes, 8 seconds So again, it's too early for me to comment on um you know, our readiness, but from what I've learned so far, 24:17 24 minutes, 17 seconds our sales teams need to be enabled more to tell this integrated story. 24:24 24 minutes, 24 seconds We need to be able to not just talk about individual towers of our product, how we can deliver outcomes for them. That is number one. 24:37 24 minutes, 37 seconds Second, we really need to make sure that we do a better job 24:46 24 minutes, 46 seconds of bringing this voice AI and the AI OS which we are building through commotion to life. I think that's another important thing we need to do. 24:57 24 minutes, 57 seconds Third, they are really looking at us to deliver them the network which will 25:03 25 minutes, 3 seconds enable them for the centralized training and edge inferencing that is going to need a high bandwidth, high speeded, 25:13 25 minutes, 13 seconds predictable speed which we need. I think the ISO DCTDC connectivity product we have launched, we need to make sure that we can serve the global customers. 25:24 25 minutes, 24 seconds And finally, we need to really increase the awareness 25:32 25 minutes, 32 seconds of everything we have built and we are building with more than 300 Fortune 500 customers we serve globally. 25:41 25 minutes, 41 seconds That is that is all I have learned so far. I'll come and share more as we think about it. But I think this 25:49 25 minutes, 49 seconds opportunity to help enterprise AI scale with the unified infra is an exciting opportunity for all of us. 25:59 25 minutes, 59 seconds That that's that's quite uh helpful. It appears that you're you're seeing more gap in the communication than the product itself. Right. uh from whatever 26:08 26 minutes, 8 seconds I can hear you it appears that we are doing a lot of things but customer are clearly not appraised with entire 26:15 26 minutes, 15 seconds portfolio services and all both I would say is opportunity but the 26:22 26 minutes, 22 seconds first thing is to make sure that our story gets out in the right fashion and the integrated unified infra story gets out to our customers in a better fashion. 26:32 26 minutes, 32 seconds Great. Great. Uh Ganesh, my second question is on the order book. Uh FI25 again was a double-digit growth year for us on the order books. FI26 you said we 26:42 26 minutes, 42 seconds had a good double digit growth but when we look at revenue growth we are barely touching 10%. Right? And this is a 26:49 26 minutes, 49 seconds quarter we came close to that else we were even lower than that. So how should we think uh about the uh strong order 26:58 26 minutes, 58 seconds book which we built in past two years and uh funnel appears to be good by your commentary. Now when should be seeing a 27:06 27 minutes, 6 seconds healthy doubledigit growth probably mid- teens or early teens kind of a growth. 27:12 27 minutes, 12 seconds Uh now there is some forex element also we are looking purely an underlying growth which appears less than 9%. Now 27:20 27 minutes, 20 seconds what is what is stopping this conversion of autoic into a equally strong revenue growth? 27:28 27 minutes, 28 seconds I think my immediate priority is to focus on growth in profitability. 27:36 27 minutes, 36 seconds I have heard from the prior transcripts that our epida growth is flat to low single digits and you would like us to change. 27:44 27 minutes, 44 seconds I would like to make sure that in the near to medium term we are focusing on improving the quality and durability of the growth. 27:53 27 minutes, 53 seconds We want to make sure that the improvement in profitability we have seen because of the digital growth happening 28:02 28 minutes, 2 seconds at 16.7 the operating leverage kicking in the losses on the digital portfolio has come down in Q4. We would like to 28:10 28 minutes, 10 seconds make sure that the digital portfolio breaks even at the earliest. 28:15 28 minutes, 15 seconds We also want to make sure that we balances the portfolio between connectivity products, usage products and digital products. 28:25 28 minutes, 25 seconds So my focus is going to be on growth and profitability to make sure that you know the digital products breaks even quickly 28:34 28 minutes, 34 seconds and we focus on improving the absolute aida growth year over year. 28:42 28 minutes, 42 seconds And when you say Ganesh you want to improve the profitability this is I hope uh with an eye that the investment in the future growth is not 28:50 28 minutes, 50 seconds compromised right absolutely absolutely I think um you know what I'm very 28:58 28 minutes, 58 seconds encouraged to see is that if you look at um Q4 29:05 29 minutes, 5 seconds our absolute AIA has grown in double digits our digital products have grown at 16.7%. 29:14 29 minutes, 14 seconds We are seeing the operating leverage kicking in. 29:18 29 minutes, 18 seconds We have also used this year, the last year to come out of low margin and ownerous contracts. 29:24 29 minutes, 24 seconds You saw that our EIDA to debt ratio came down below two. And more importantly across our portfolio we have some new 29:33 29 minutes, 33 seconds products which are high on profitability like the multicloud connect the employee interaction 29:40 29 minutes, 40 seconds they're all gaining momentum so I think our immediate focus is to get to the right portfolio mix continue to improve 29:50 29 minutes, 50 seconds the digital product portfolio profitability accelerate the high margin products we have which is multicloud connect and in employee interaction. 30:02 30 minutes, 2 seconds I'm sure that will help us to invest continue to invest on future growth as well. 30:10 30 minutes, 10 seconds Mr. Jane, uh may we please request you to return to the queue as there are several participants waiting for their turn. 30:17 30 minutes, 17 seconds Thank you. We'll move to our next question that's from Aditya Suresh of Mquaryi. Please go ahead. 30:27 30 minutes, 27 seconds Yeah, thank you for the opportunity. Um, so two parts. First on growth. Maybe 30:34 30 minutes, 34 seconds could you just like pinpoint I'm sorry to promote the uh we're not able to hear you clearly. 30:48 30 minutes, 48 seconds Is now better? Apologies. 30:50 30 minutes, 50 seconds Yeah, this is better. You'll have to repeat your question, sir. 30:54 30 minutes, 54 seconds Okay. Apologies for this. Um so on growth what drove the sequential momentum this quarter and is that I 31:01 31 minutes, 1 second guess um is that a position which you think is sustainable into the full year uh for FI27 that's question one. Uh 31:09 31 minutes, 9 seconds question two is on margins. Uh why was core connectivity margins softer this quarter? Can you just talk through that a little bit and within the digital 31:17 31 minutes, 17 seconds portfolio? I appreciate don't give a breakdown but uh which are the elements which are still underperforming for you and some of the steps you're taking please. Thank you. 31:27 31 minutes, 27 seconds I I'll just comment on u the the sequential growth in the digital portfolio. 31:32 31 minutes, 32 seconds Uh so the the growth has been broad-based, you know, in our digital portfolio. All segments have grown well. 31:40 31 minutes, 40 seconds Uh from an uh from a percentage growth perspective, we have seen some large deal wins happening in in the media uh business uh as well as in the move and 31:48 31 minutes, 48 seconds IoT business and they have grown north of 20% on a sequential basis. The other parts of the businesses have also done well including some good wins in the 31:56 31 minutes, 56 seconds collaboration and CIS business. Uh the next gen connect connectivity as Ganesh also pointed out has been a strong business segment for us that also 32:04 32 minutes, 4 seconds continue to do well. So I would say uh the overall growth has been quite broad-based and we see growth coming in from all the segments. 32:20 32 minutes, 20 seconds Uh does that answer your question Mr. 32:22 32 minutes, 22 seconds No, I think there was a part around core connectivity. 32:25 32 minutes, 25 seconds Connectivity margin. Yeah. So the core connectivity margins uh uh they came in uh from an NR perspective there was 32:34 32 minutes, 34 seconds marginally lower compared to last quarter. Uh to our mind I mean they are largely in 32:41 32 minutes, 41 seconds that range of that 80 to 82%. uh last quarter was marginally higher but I think we are broadly operating in this bank so I don't think we should read in 32:50 32 minutes, 50 seconds too much in terms of uh the minor drop that may have happened in this box yeah 32:59 32 minutes, 59 seconds thank you we move to our next question yes sir 33:07 33 minutes, 7 seconds go ahead please our next question is from Balaji subramanyan of IFL Please go ahead. 33:19 33 minutes, 19 seconds Mr. Balajit Subramanyan, could you unmute your microphone and ask your question now? 33:26 33 minutes, 26 seconds Uh, hi. Uh, good evening. Am I audible now? Yes sir. 33:30 33 minutes, 30 seconds Yeah. Uh, great. Uh, uh, so uh, all the best Ganesh and thanks for the detailed commentary. Uh so my first question 33:39 33 minutes, 39 seconds would be on you know you did mention that there will be a continuity of the strategy probably it is too early but uh 33:46 33 minutes, 46 seconds does that mean that uh you know the uh data revenue doubling target uh which Lakshmi had set uh that still uh holds 33:54 33 minutes, 54 seconds good uh that would be my first question. 34:01 34 minutes, 1 second Thanks Baj. Um thank you very much. You know, it's too early for me to comment on um forward-looking numbers, but I 34:10 34 minutes, 10 seconds sincerely believe that we are uniquely po positioned 34:17 34 minutes, 17 seconds to capture the momentum which is coming from the AIdriven demand. 34:24 34 minutes, 24 seconds our connectivity products especially the next gen products which we have launched you saw that we've gone 24% year-over-year growth 34:33 34 minutes, 33 seconds within the digital portfolio some of the highly profitable products like employee interactions we continue 34:40 34 minutes, 40 seconds to see traction I think what we really want to focus on is in the near to medium term we want to 34:47 34 minutes, 47 seconds drive growth in profitability we want to make sure that year over year we continue to see healthy aida growth. 34:56 34 minutes, 56 seconds We will continue to invest in future growth as well. I'm sure it'll come. But in the near to medium-term, we want to 35:03 35 minutes, 3 seconds make sure that we focus on driving profitable growth. 35:08 35 minutes, 8 seconds Getting the digital portfolio to break even at the fastest by really accelerating some of the high profitable 35:16 35 minutes, 16 seconds products are resonating in the market like multicloud connect, employee interaction, some of those things. 35:25 35 minutes, 25 seconds So that earlier aspiration that was stated is it's it will be taken in a more in an organic manner and not really 35:32 35 minutes, 32 seconds that you know you you know that hard uh aspirations that was mentioned uh that is something you know which will which you will probably look at uh uh you know 35:41 35 minutes, 41 seconds as uh you know you settle more into the role is that right is that the way to look at it I I'm not I'm not sure I'm ready to 35:50 35 minutes, 50 seconds state those kind of things I think we will share more in the investor today and I'll share more as I finish 100 days. 35:57 35 minutes, 57 seconds I think all at this point of time we would like to focus on is the profitable growth we want to see in 36:05 36 minutes, 5 seconds the near-term medium term. As I explained in my speech, the long-term prospects of AI driving demand and with 36:12 36 minutes, 12 seconds our global GTM where we serve more than 300 of the global fortune 500, 60% of our 36:20 36 minutes, 20 seconds revenue coming from international markets and the broad portfolio we have built where more than half of the revenue num 36:27 36 minutes, 27 seconds comes from non-connectivity products. I think those are all the foundations we will build on but in the near to medium 36:34 36 minutes, 34 seconds term we want to see that there is healthy growth in our aeta. 36:41 36 minutes, 41 seconds My second question would be on you know can you throw some light on the potential opportunities from uh AI data centers and related on a in a related on 36:49 36 minutes, 49 seconds a related note you know whether uh is there anything to worry about regarding the you know uh memory shortage and you know some of the uh disruption to 36:58 36 minutes, 58 seconds logistics that we have seen because of uh the existing existing geopolitical situation. 37:04 37 minutes, 4 seconds Yeah. So let me address the geopolitical situation first. I think like all of you we are also watching this very very closely. 37:14 37 minutes, 14 seconds Um there are multiple risks we are addressing. The first one I would say is all of our employees are really safe. 37:22 37 minutes, 22 seconds That's the first and foremost on the people's side. So this is important. I think most of our employees are um are 37:31 37 minutes, 31 seconds safe. On the demand side we are some seeing some risks. We have seen some events getting postponed and cancelled 37:38 37 minutes, 38 seconds like the F1 race in Bahrain and Saudi Arabia and the Moto GP race in DHA to later this year. Um we're hoping that 37:46 37 minutes, 46 seconds it's not a cancellation. It will come back um strongly. 37:51 37 minutes, 51 seconds On the demand side, that's the impact we are seeing. On the cost side, we are tracking this very closely. Um both the 37:58 37 minutes, 58 seconds energy cost and anything to do with the chip related cost at this point of time. 38:06 38 minutes, 6 seconds Except for the demand side challenges, we don't see a big issue in the cost side challenges. But we are assessing 38:14 38 minutes, 14 seconds this every week, every day. And um if there is anything material, we'll come back in the next call. But um 38:24 38 minutes, 24 seconds we will make sure that we continue to watch this very closely and make sure that you guys are briefed in the next call. 38:35 38 minutes, 35 seconds Got it. And my first question on the AI data center demand. 38:39 38 minutes, 39 seconds Um that's actually a you know exciting opportunity as well. So every risk has an opportunity as well. So if you look 38:47 38 minutes, 47 seconds at data center connectivity with the strong global backbone we have lot of our customers are today talking to us 38:56 38 minutes, 56 seconds about offering them a resilient opport connectivity. So if you look at the latest products 39:04 39 minutes, 4 seconds we have launched which is the ISO DCTDC connectivity it actually provides a resilient network which also 39:13 39 minutes, 13 seconds self-provisions itself for any um challenges in connectivity and also 39:19 39 minutes, 19 seconds provisions bandwidth on demand. So the DCTDC connectivity globally is a big opportunity in India. 39:27 39 minutes, 27 seconds You know, we expect this to be at least a billion dollar opportunity by 2030. 39:33 39 minutes, 33 seconds The number of data centers coming out in India is going to only explode and Tata 39:40 39 minutes, 40 seconds communication is uniquely positioned to capture it because we have a pure B2B network 39:47 39 minutes, 47 seconds which offers very low latency highly resilient connectivity across various different cities. 39:56 39 minutes, 56 seconds We also see that the concentration of D thesis are going to move away from Mumbai to second tier and third tier cities. 40:05 40 minutes, 5 seconds Mumbai itself we expect 10 to 10 12 data centers to come up and it's going to go up to to at least um you know we expect 40:13 40 minutes, 13 seconds this to be about 4x increase in the data center bandwidth need which will come 40:19 40 minutes, 19 seconds and um given that we have a true B2B network. 40:25 40 minutes, 25 seconds We have robust data center to data center connectivity and more importantly we have the software platform on the top 40:32 40 minutes, 32 seconds to do bandwidth on demand. the products like ISO DCtoDC connectivity it positions well to capture this 40:39 40 minutes, 39 seconds opportunity thanks that is very clear I have a 40:46 40 minutes, 46 seconds followup but I will come to you know come back later in the queue uh uh you know thanks and all the best thanks thank you 40:55 40 minutes, 55 seconds thank you we'll take a next question from Vhor Single of Noama Equities please go ahead 41:05 41 minutes, 5 seconds Yeah. Hi. Uh, thanks for taking my questions and uh, congratulations and welcome to the board Ganesh and Sedh and 41:13 41 minutes, 13 seconds Kabir wish you all the best in your future endeavors. Uh, couple of questions from my side, one for Ganesh and one a bookkeeping question for 41:21 41 minutes, 21 seconds Sedat. So Ganesh, in your opening remarks you mentioned that you're seeing these two trends. uh one is that the while the front end is digitized the 41:29 41 minutes, 29 seconds back end still remains legacy uh while there is of course the other trend being the AI transformation and we at Tatcom intend to basically capture you know both these uh trends and opportunities. 41:40 41 minutes, 40 seconds Now if I basically dig a little deeper into them these are completely these two represent completely different spectrum of applications and uses for 41:49 41 minutes, 49 seconds enterprises. uh one is about the latest new development uh technology development which is still in very nent stages and enterprises are still not 41:57 41 minutes, 57 seconds sure about how they can use that to maximize the benefit and the other is all about legacy uh modernization. Uh so 42:04 42 minutes, 4 seconds in terms of the capabilities that we have in data communications uh do you believe the current setup that you have in terms of the sales engine or the 42:12 42 minutes, 12 seconds delivery capabilities uh we have enough resources at our disposal to be able to capture both ends of the spectrum. And a 42:19 42 minutes, 19 seconds related question, where do you see the overlap in these two things with the uh industry uh system integrators, the 42:26 42 minutes, 26 seconds likes of the TCSS and the smaller IT services companies? Would there be a a competition that you see with them and 42:36 42 minutes, 36 seconds how does that impact our growth prospect that we're talking about over the next let's say 3 to five years kind of a journey. Uh post that I'll have a follow-up question for SAP please. 42:46 42 minutes, 46 seconds Fantastic question and um I'm excited to ask talk about it because I firmly believe in it. First and foremost, we 42:53 42 minutes, 53 seconds have the GTM. We serve 300 of the global fortune 500 companies and if you look at India, we serve all the ET500 companies, 43:01 43 minutes, 1 second pretty much everybody. So, one, we have the GTM and you heard me say that we have the best NPS, right? We have 83% NPS globally and in India we have 91% 43:10 43 minutes, 10 seconds almost 95% NPS. So the customers trust data communications to provide this important solution. Let me talk about the first one which is the back end 43:18 43 minutes, 18 seconds being digitized. So what do you need for a factory or a supply chain or a warehouse to get digitized? The first and foremost they need to be connected. 43:26 43 minutes, 26 seconds So we have a managed Wi-Fi solution which can really drive full digitization seamless connectivity without any dark spots in big factories and warehouses. 43:37 43 minutes, 37 seconds We also have an integration between the manage Wi-Fi and van. just not about traffic within the factory but it's about how they connect to external world 43:45 43 minutes, 45 seconds as well. So that's the first fundamental backbone and we have that solution. 43:49 43 minutes, 49 seconds Second is edge computing closer to the factory. So most of these solutions are going to need a cloud infrastructure a 43:56 43 minutes, 56 seconds sovereign cloud infrastructure which is closer to their factories and warehouses and if you look at our ISO YU cloud we have that solution as well. So that's 44:04 44 minutes, 4 seconds the second thing I would say. Third is they really need uh you know if you look at manufacturing companies they need a platform where a CIO can get end to end 44:13 44 minutes, 13 seconds visibility of their environment which provides inventory configuration and uh monitoring. Our threat span platform 44:22 44 minutes, 22 seconds brings all of that together. So a CIO can confidently look at not only the IT security but what is called the OT security which is basically the factory 44:30 44 minutes, 30 seconds environment and stuff like that. On top of it, we have a managed services offering which can make these factories and warehouses easy to consume all this 44:38 44 minutes, 38 seconds technology. So I am, you know, really excited to see that the end to end portfolio we have should address the backend digitization problem I talked about. Now let me shift to the AI story. 44:50 44 minutes, 50 seconds I think you know if you look at true enterprise AI ROI, it's going to come from AI agents working with enterprise 44:58 44 minutes, 58 seconds data. You know if you work with internet data you get a little bit of benefit but you know if you take a bank for example the biggest ROI for a bank is going to 45:05 45 minutes, 5 seconds come from an AI agent distribute loans right and if you if you talk about an AI agent deciding how to distribute loan 45:13 45 minutes, 13 seconds one you need to make sure that the AI agent is working in all the branches which is the inferencing part they're getting trained on enterprise data in 45:21 45 minutes, 21 seconds the central part and to make that happen you need multiple things one you first need an AI agent platform we have that on commotion 45:29 45 minutes, 29 seconds You need to make sure that the east west traffic which is training happening centrally inferencing happening on edge is going to need a lot of traffic with 45:38 45 minutes, 38 seconds predictable speed. We have that important one. It's going to need computing closer to edge you know we can 45:45 45 minutes, 45 seconds provide that as well with our uh volume cloud platform and it is going to need you know stable branch connectivity 45:52 45 minutes, 52 seconds which we can do that as well. I think you know the enterprise driving enterprise AI to scale is going to need an unified infra from a partner like 46:00 46 minutes Taccom who's a pure B2B global compact player. I think we have that as well. I think what we need to do better is you 46:07 46 minutes, 7 seconds know tell the story get our GTM enabled get our products stitched together continue to invest in these parts of our 46:15 46 minutes, 15 seconds portfolio. I think these two trends we can monetize. 46:20 46 minutes, 20 seconds Got it. Got it. Thanks for the very detailed answer. Just to follow up on the second part in the second strategy when we talk about the AI transformation 46:28 46 minutes, 28 seconds this the capability to uh develop these agents uh which can basically work on the enterprise data so are we already investing into building those agents uh 46:37 46 minutes, 37 seconds are we are we kind of investing into building LMS also or or are we only looking at using open source LLMs and also are we also looking to partner with 46:46 46 minutes, 46 seconds these various L&M providers like let's say entropic open AI or other such platform companies I I think um the space is evolving really really fast. 46:55 46 minutes, 55 seconds Um we have invested recently into the commotion platform and um in my 15 20 conversations with a 47:05 47 minutes, 5 seconds NBFC with an insurance agent there's a lot of demand um for this voice AI platform. What it 47:12 47 minutes, 12 seconds points to me though is while it's a uni you know unique use case to come up with collection agents who are AI agents um 47:20 47 minutes, 20 seconds relationship manager who are UI agents it points to an unified infra demand it's just not about the AI agent alone the AI agent is going to need um 47:30 47 minutes, 30 seconds security the AI agents need to connect to an enterprise data the AI agents will be able to connect to a voice infrastructure 47:37 47 minutes, 37 seconds I think those are all our strengths um which is our motive I say so the commotion investment gives us a 47:46 47 minutes, 46 seconds great opportunity to participate in this exciting journey where a real AI agent who works on enterprise data solving enterprise use cases which delivers real 47:55 47 minutes, 55 seconds ROI we have the building blocks to participate in this uh but as I said it's also very fast evolving we will not 48:03 48 minutes, 3 seconds only work with commotion we'll also look to partner with other um AI companies on this side uh but with the global GTM we 48:12 48 minutes, 12 seconds have with the high NPS we have and the trust we have built I'm expecting that we should be able to capitalize on the 48:18 48 minutes, 18 seconds enterprise AI as well perfect to hear that just one last question for Sedat uh Sedat in this 48:26 48 minutes, 26 seconds quarter we saw very strong growth if I look at the console growth the data growth and the digital growth these were 48:32 48 minutes, 32 seconds 9% 12% and 19% on a Yony basis uh now uh assuming almost 60% of our revenue uh is 48:40 48 minutes, 40 seconds outside India I would assume a good part of the revenue growth would have come because of the very sharp INR depreciation in this quarter. Uh so 48:48 48 minutes, 48 seconds would we be able to kind of strip out the currency benefit from this growth number and provide the individual numbers in in a manner similar to let's 48:56 48 minutes, 56 seconds say a constant currency growth or let's say in dollar terms or whatever metrics in which we can strip out the impact of the currency movement. 49:04 49 minutes, 4 seconds Yeah. Uh so what you're saying is right uh for the quarter on a Y basis uh we uh 49:14 49 minutes, 14 seconds we have reported 9% uh kind of a growth and as a part of my opening commentary also I had given out some numbers but I can read that out again for you. 49:22 49 minutes, 22 seconds Sure. 49:22 49 minutes, 22 seconds So for the overall uh revenue on a Y basis the on a on a on a flat currency basis the revenue growth stood at 3.8%. 49:32 49 minutes, 32 seconds uh and uh on a QQ basis it was also a similar kind of a number of around 3.8 49:39 49 minutes, 39 seconds Got it. And would we be able to give a similar number for the digital growth the digital business which grew by 19%. 49:45 49 minutes, 45 seconds What would that be in a flat currency environment? 49:49 49 minutes, 49 seconds Uh before we don't provide that data uh for for the other parts of the business. 49:55 49 minutes, 55 seconds Fair. No worries. I'll probably kind of calculate that if I can. Uh great. Uh thank you so much for taking my questions. I'll come back into the Q. Thanks. 50:03 50 minutes, 3 seconds Thanks. 50:05 50 minutes, 5 seconds Thank you. We take our next question from Venit Manik from Karma Capital Advisor. Please go ahead. 50:16 50 minutes, 16 seconds Yeah. Can you hear me? Yes sir. Yes. 50:19 50 minutes, 19 seconds Yeah. Uh it's good to hear your energetic voice Ganesh and uh you have answered most of my question. But uh 50:27 50 minutes, 27 seconds just one thing from my side that how do you guys now look ST as a non-core investment for us because there has been 50:36 50 minutes, 36 seconds a development at the global entity where KKR and Intel has taken stake. So how should we look at this investment from a 50:44 50 minutes, 44 seconds going forward basis? Uh uh uh any plans to monetize in the near term and get the cash out of it which will help us to 50:52 50 minutes, 52 seconds reduce the debt or help us that cash to put in the future growth capital or do we have plans to further infuse capital 51:02 51 minutes, 2 seconds uh to grow that business on a going forward basis. So just wanted your views on the same. 51:08 51 minutes, 8 seconds Yeah thanks Venit. I told that I'll deflect the tough question to Kabir. So I have Kabir STD one. Hi Vin. Good to good to hear from you. 51:16 51 minutes, 16 seconds Um maybe you would have missed it out. 51:18 51 minutes, 18 seconds STD already made a press uh statement press release. Um I think a few weeks ago probably sometime in middle of 51:27 51 minutes, 27 seconds January if I'm not wrong that they are looking for a potential IPO for their Indian asset. Um and and of course this 51:35 51 minutes, 35 seconds is all subject to their transaction firstly closing. um that transaction you know is with the with the regulatory authorities as with any other M&A 51:44 51 minutes, 44 seconds transaction. So once that get close is I'm sure you know STD will look out those options. As far as Staticcom is 51:51 51 minutes, 51 seconds concerned, um we want to ensure that we get the right value, you know, for for our asset. Um and we are quite delighted 52:00 52 minutes with the fact that uh that IPO will probably give the the the right value discovery for our you know um for our 52:07 52 minutes, 7 seconds stake and um closer to time I'm sure the management will decide in what branches and how we will monetize that you know 52:15 52 minutes, 15 seconds and then take that forward. So um so that's uh what we have done. We have engaged with ST and we have engaged with the new buyer and secured our rights you 52:24 52 minutes, 24 seconds know on the monetization of which IPO is the lead option. 52:30 52 minutes, 30 seconds Got it. Got it. Thank you. Thank you for the clarification and all the best Kabir for your new end. Thanks. Thank you. 52:39 52 minutes, 39 seconds Thank you. Our next question is from Anish Davari of Carer Change LLP. Please go ahead. 52:49 52 minutes, 49 seconds Hi uh wish you really best uh Kavir in your future and Ganesh welcome and wish you 52:57 52 minutes, 57 seconds also best for the journey here. This uh topic of uh you working with enterprise 53:03 53 minutes, 3 seconds in their AI journey. uh do you need to uh look at uh getting some talent which 53:11 53 minutes, 11 seconds can help you do this because this seems to be uh a pretty exciting area but uh may require very different kind of 53:19 53 minutes, 19 seconds talent to stitch together AIdriven solutions partner with AI products and firms which you need. 53:27 53 minutes, 27 seconds Yeah. So absolutely yes I think Anish that's a great question but um I'm also excited that we have made an investment 53:36 53 minutes, 36 seconds in commotion we have a very bright set of high talent engineers 53:43 53 minutes, 43 seconds um who are there I think our fundamental building blocks to capitalize on this unified infera is there 53:50 53 minutes, 50 seconds I think what we really need to do is to use our GTM to build this outcome based solutions 53:58 53 minutes, 58 seconds using the building blocks. When I talked about the loan dispersement agent or the collection agent or the relationship 54:06 54 minutes, 6 seconds agent, it is not about the individual parts of our portfolio really stitching that together to make that outcome happen. 54:15 54 minutes, 15 seconds Uh we do have a strong asset in commotion. 54:21 54 minutes, 21 seconds The some of the products we have launched like the dynamic DC2DC connectivity the multicloud connect 54:29 54 minutes, 29 seconds helps us to make sure that we are getting ready for the network which is needed for the AI enterprise AI to scale 54:37 54 minutes, 37 seconds with the cloud and security portfolio we have we have a good engineering team and a set of um amazing product managers 54:45 54 minutes, 45 seconds we're going to challenge them to bring the edge compute we need um I I think the GTM needs to strengthen the way we 54:55 54 minutes, 55 seconds tell the story. I think we need to start with customer in talk about the outcomes we can deliver and gain the customer's trust. 55:05 55 minutes, 5 seconds I'm very happy to see the number of PC's we are currently doing and the early wins we have seen in that space 55:12 55 minutes, 12 seconds especially the multicloud connect as well as uh the commercial AI we are seeing some good traction. 55:20 55 minutes, 20 seconds Great. This is yeah sorry now it's going one layer up also let's say having the people who can go to these enterprises understand their 55:28 55 minutes, 28 seconds problems uh they might how can they grow their revenue or save cost and then they figure out a solution whether to 55:35 55 minutes, 35 seconds requiring your products or maybe stitching together using the outside knowing all the AI work which is going on the products out there rather than 55:44 55 minutes, 44 seconds just focusing on selling own products I was thinking more from let's say service uh layer where you sort of go to 55:50 55 minutes, 50 seconds enterprise and solve their problem and it may be solved by your products or maybe solved by anything else also. 55:57 55 minutes, 57 seconds Yeah, I think the um the so if you look at our GTM um it's actually multi-tered right we have our account executives who work 56:05 56 minutes, 5 seconds with these 300 out of the fortune 500 companies you mentioned and all the India. So that's the first layer. Then we have a second 56:14 56 minutes, 14 seconds layer who are what we call business development managers and solution specialists who work in these individual 56:21 56 minutes, 21 seconds towers. Right? So we have the network fabric, we have the cloud and security fabric and we also have the interaction 56:29 56 minutes, 29 seconds fabric. On top of it we have built this thread span which is the integrated platform which brings this digital fabric to life 56:38 56 minutes, 38 seconds for the need of an AI solution. And we're also building services team on top of it which can help enterprises to uh manage that infrastructure. 56:48 56 minutes, 48 seconds We're also investing in what is called a strategic product group which has got some very high senior resources in each 56:56 56 minutes, 56 seconds region which can talk about domain specific solutions and then bring all this towers together. Um it's an 57:03 57 minutes, 3 seconds exciting journey. I think I could leverage the experience I've gotten from my prior companies and bring that GTM to life in Tara Communications as well. 57:16 57 minutes, 16 seconds Great. Thank you G and wish you very best. Thank you. 57:21 57 minutes, 21 seconds Thank you. We take our next question from Balaji Subraman and of Imm. Please go ahead. 57:34 57 minutes, 34 seconds All of you welcome back. We can't hear you. 57:38 57 minutes, 38 seconds Yeah. Uh thanks for taking my question again. Uh I just had a uh question on this uh strong revenue growth that we 57:46 57 minutes, 46 seconds have seen in collaboration and CPASS. Uh so uh you know is there uh is part of it due to commotion inc acquisition which 57:55 57 minutes, 55 seconds probably is getting captured here. If that is the case uh you know any sense on the quantification from the same and the other thing is you know I was going 58:03 58 minutes, 3 seconds through Twilio's earnings call where they have talked about uh some price increases that T-Mo T-Mobile in the US 58:10 58 minutes, 10 seconds has taken. So is that the reason you know uh why the collaboration and CPASS revenues up so sharply? I get that you 58:17 58 minutes, 17 seconds know uh this can be you know if if that is the case you know then are we looking at you know this rate sustaining forward 58:24 58 minutes, 24 seconds as in whatever the base we have seen in 4Q fi26. So you know some color here would be very helpful. 58:33 58 minutes, 33 seconds So let me talk about the collaboration platform. I think the example I gave on a big global bank. See the solution we 58:42 58 minutes, 42 seconds are offering is very very unique. Along with the UKcast platforms, we offer the capabilities of GCC employees or any 58:51 58 minutes, 51 seconds global employees to connect from a platform like teams or WebEx into 59:00 59 minutes mobile numbers and phone numbers directly. I think it's a very very unique solution given the growing nature of GCC's in 59:08 59 minutes, 8 seconds India. given the unique product we have built and that's the solution along with all the connectivity a GCC is going to 59:16 59 minutes, 16 seconds need which has helped us to you know win big deals so I want to um really grow that part which is the employee 59:24 59 minutes, 24 seconds interaction suite which is a very very important place so that's what is driving some of the collaboration growth 59:31 59 minutes, 31 seconds and our CPAS revenues are up because of volume growth not price hike right commotion is a very interesting ing 59:40 59 minutes, 40 seconds because it's AI enabling all the customer interactions. 59:44 59 minutes, 44 seconds So we talked about how we are using them to set up a collection agent to set up a relationship manager in insurance company. We already see about five 59:52 59 minutes, 52 seconds customers have signed up for that platform play. So I wouldn't say that you know it's got anything to do with price but it's volume growth which has 1:00:00 1 hour driven our CPASS revenue. But we are truly excited about this collaboration platform voice collaboration platform which is our UKcast product. 1:00:09 1 hour, 9 seconds um employee interaction suite. I think that's a very very unique solution we have built uh with our global voice backbone and the platform we have built. 1:00:16 1 hour, 16 seconds I think that's when we would love to scale. 1:00:21 1 hour, 21 seconds Uh got it. So commotion is uh you know included in collaboration and cassu uh you know segment only right that is that 1:00:30 1 hour, 30 seconds but it is not material contributor to the revenue. 1:00:33 1 hour, 33 seconds Got it. So basically you know based on the strength that you are that you are seeing in uh UKAS and uh the employee 1:00:40 1 hour, 40 seconds collaboration suite etc. It is kind of you know fair to assume that you know most of this uh growth is uh uh underlying business growth and there is 1:00:49 1 hour, 49 seconds no lumpy uh uh you know revenue or something which is uh you know uh there in this particular quarter that would be a fair statement right 1:00:57 1 hour, 57 seconds yes I don't think there is lumpiness in the in the Q4 there is usage growth the volume growth has happened on the Cass side and we are seeing some good wins on 1:01:06 1 hour, 1 minute, 6 seconds our UK side great great uh this is very helpful uh thanks once again and all the Thank you. 1:01:16 1 hour, 1 minute, 16 seconds Thank you very much. Um, Inba, that brings us to 7:30. Um, so I would love to close the call. Thanks a lot for 1:01:23 1 hour, 1 minute, 23 seconds joining. I think um, you know, we take all your best wishes, me and Sid, and we'll come back next quarter to talk more about the year. 1:01:32 1 hour, 1 minute, 32 seconds Thank you very much, sir. Ladies and gentlemen, on behalf of Tata Communications, that concludes today's call. Thank you for joining us. You may 1:01:40 1 hour, 1 minute, 40 seconds now click on the leave icon to exit the meeting. Thank you all for your participation. Goodbye.