Tata Elxsi Limited — Q4 FY26

Tata Elxsi Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=xvIZ7pzI0xI Published: 3 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Q4 FY2526 earnings conference call of Tata Alexi 0:09 9 seconds Limited. As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation 0:17 17 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone phone. 0:27 27 seconds Please note that this conference is being recorded. I now hand the conference over to Mr. Shashang Ganesh from ENY. 0:35 35 seconds Thank you and over to you sir. 0:38 38 seconds Thank you very much. Good evening to all the participants on the call. Good morning if you're logging in from the western side. Before we proceed to the call, let me remind you that the 0:46 46 seconds discussion may contain forward-looking statements that may involve known or unknown risks, uncertainties, and other factors. Therefore, it must be viewed in 0:53 53 seconds conjunction with business risk that would cause further result performance or achievements that differ from what is expressed or implied by such statements. 1:01 1 minute, 1 second To take us through the results and answer your questions today, we have the senior management of Tata atexi represented by Mr. Mano Ravan, managing 1:09 1 minute, 9 seconds director and CEO, Mr. Nitan Pai, chief marketing and chief strategy officer, Mr. Goravaj, chief financial officer and 1:16 1 minute, 16 seconds Miss Nihavi, company secretary. We will start the call with a brief overview of the past quarter by Mr. 1:21 1 minute, 21 seconds followed by a Q&A session. We would appreciate your cooperation in restricting yourselves to two questions to allow participants an opportunity to interact. If you have any further 1:29 1 minute, 29 seconds questions, you may join the queue and we will be happy to respond to them if time permits. With that, I would like to hand over the call to Mr. Mano Raum. Over to you, manage. 1:39 1 minute, 39 seconds Uh thank you, Shashank. Uh very good evening to everybody who's joined us today. Welcome to the Q426 1:47 1 minute, 47 seconds uh investor call. I hope that you and everybody in your family is safe and healthy. I'm pleased to announce that we have delivered a healthy revenue of 1:55 1 minute, 55 seconds 993.8 crores for the quarter, growing.9% quarteron quarter in constant currency terms. 2:04 2 minutes, 4 seconds Uh in a transportation business, our revenues in Q4 26 grew by2% quarteron quarter in constant currency terms. We are delighted with two strategic wins. 2:14 2 minutes, 14 seconds one uh in the AP pack region from a new age OEM and another from a next generation mobility services company in the US paving the path for business 2:23 2 minutes, 23 seconds growth in coming quarters. Our investment and efforts to pivot towards OEM business is delivering continued success underscoring our strength in focused execution of chosen strategies. 2:34 2 minutes, 34 seconds OEM customers now represent 77% of the revenue in this vertical. 2:40 2 minutes, 40 seconds Our healthcare and life sciences vertical degrrew by 13.1% quarteron quarter in constant currency terms impacted by delays in deal awards that 2:48 2 minutes, 48 seconds we were expecting and prepared for in the quarter. Uh however during the quarter we opened an offshore development center for uh the Japanese 2:56 2 minutes, 56 seconds medtech leader Thermo Corporation. This center brings together the power of design engineering and digital to innovate their cardiac and vascular solutions. 3:06 3 minutes, 6 seconds Uh I'm happy to report that our media and communication business posted a 5.6% quarteronquarter revenue growth in 3:12 3 minutes, 12 seconds constant currency terms. Uh this growth was led by continued deal rampups. Uh a strategic deal for adtech and tier 1 US 3:21 3 minutes, 21 seconds telco. Uh in the quarter we also won a multi-year large deal from a worldleading device OEM for its 3:28 3 minutes, 28 seconds portfolio of video and broadband products. 3:32 3 minutes, 32 seconds For the quarter, our EITA margins stood at 24.6% improving by 130 basis points sequentially. 3:40 3 minutes, 40 seconds This reflects a constant continued focus on operational excellence and margin improvement. 3:46 3 minutes, 46 seconds In FI26, we significantly advanced our adoption of Genai. This was supported by partnerships with AI companies. Launch 3:55 3 minutes, 55 seconds of our own automotive SDLC platform devstudio.ai earlier in this quarter. 4:00 4 minutes curated tool stacks and agent inventory, investments in infrastructure, sandbox environments with IP protection and data 4:07 4 minutes, 7 seconds privacy, and rigorous upskilling. With these coordinated efforts, we are progressing steadily towards being an AI 4:15 4 minutes, 15 seconds native engineering organization, strengthening our differentiation and innovation quotient. 4:20 4 minutes, 20 seconds Uh I am pleased with our sustained and strong operational performance through segment leading offshore delivery. A continued transition to fixed bid 4:27 4 minutes, 27 seconds project ownerships and the systematic and enterprise adoption enterprisewide adoption of AI enabled efficiencies. 4:34 4 minutes, 34 seconds These levers strengthened execution discipline and productivity driving consistent margin improvements throughout the year. 4:40 4 minutes, 40 seconds As we enter the next financial year, uh we remain focused on scaling our differentiated designled and AI enabled offerings, strengthening operation 4:49 4 minutes, 49 seconds operational leverage and driving sustainable growth and healthy margins. 4:55 4 minutes, 55 seconds Um thank you and uh over to Shashank um for a Q&A session. 5:01 5 minutes, 1 second Thank you very much. We will now begin with a question and answer session. 5:06 5 minutes, 6 seconds Anyone who wishes to ask a question may press star and then one on their touchstone phone. If you wish to remove yourself from the question queue, you may press star and two. 5:18 5 minutes, 18 seconds Participants are requested to use handsets while asking a question. 5:23 5 minutes, 23 seconds Ladies and gentlemen, we will wait for a moment while the question assembles again. To register for a question, please press star and then one. 5:35 5 minutes, 35 seconds Our first question comes from the line of Sajjin Kapoor from Antifragile Thinking. Please go ahead. 5:42 5 minutes, 42 seconds Yeah. Hi, thanks for taking my questions. Um sir, of the deals you have won recently um how much of the value uh 5:52 5 minutes, 52 seconds is coming from existing customers expanding their engagements or wallet share versus entirely new logos and how 5:59 5 minutes, 59 seconds has this um mix evolved over the last two or three years? That's my first question. Thank you. 6:07 6 minutes, 7 seconds Yeah, I think uh you know if if you look at it in in any quarter uh uh the new customers would contribute maybe two two 6:14 6 minutes, 14 seconds and a half% of the revenue. So large portion of the revenues come from existing customers and the deals that we win with uh with them. But however we 6:23 6 minutes, 23 seconds also uh see uh you know good new set of customers that are coming in. Example, this quarter we have announced, you know, a deal with Turmo, for example, 6:30 6 minutes, 30 seconds that's a new customer that set up a an ODC with us in the healthcare and life sciences space. Uh similarly, uh the 6:38 6 minutes, 38 seconds deal that we announced with the in the automotive segment with the AP pack uh uh customer, that is also a new customer for us and that's a uh that's a deal 6:46 6 minutes, 46 seconds that uh we have announced. Uh the deal that we announced in the media communication space uh with uh the multi-year deal that's an existing 6:54 6 minutes, 54 seconds customer of ours. So, so it's always a mix of existing as well as new customers. 7:01 7 minutes, 1 second Sure. And just a followup, I mean, is there a pattern where the new logos typically take x number of years uh to scale up or is is there no such pattern? 7:10 7 minutes, 10 seconds I mean, it depends on customer to customer. 7:13 7 minutes, 13 seconds It depends on business to business I would say. Uh usually yeah uh even if you win a deal for it to make a 7:20 7 minutes, 20 seconds significant you know impact it takes anywhere between you know 9 months to 12 months right for ramp ups actually ramp 7:27 7 minutes, 27 seconds ups to happen and start delivering sure that's helpful and my second and last question is um you have highlighted 7:36 7 minutes, 36 seconds AI productivity and a shift um towards um you know fixed bid and platform based delivery are these 7:45 7 minutes, 45 seconds changes is starting to alter pricing power and contract structures or are they mainly improving internal 7:53 7 minutes, 53 seconds efficiency. So far it's both right. Definitely we are using a lot of that for internal efficiencies. 7:59 7 minutes, 59 seconds However, there are customers that are demanding, you know, uh, you know, better, you know, efficiencies, productivity and so on, which 8:07 8 minutes, 7 seconds automatically leads to, you know, if if you're able to deliver that performance and productivity, then a better pricing power, right? So, it's it's a combination of both. 8:16 8 minutes, 16 seconds Okay, thank you. I'll rejoin the queue. Thank you. 8:22 8 minutes, 22 seconds Thank you. Before we take the next question, a reminder to everyone. You may press star and then one to ask a 8:28 8 minutes, 28 seconds question. Our next question comes from the line of Rishi Modi from RDM Advisory NLP. Please go ahead. 8:36 8 minutes, 36 seconds Yeah. Hi. Um, so my first question is uh pertaining to the quarterly result. Uh, 8:44 8 minutes, 44 seconds so healthcare we've declined 13% Q on constant currency uh in our revenue. Uh last quarter you 8:52 8 minutes, 52 seconds called out that probably Q3 was the bottom. Uh just wanted to get your view that do we see Q4 as now the bottom or 9:02 9 minutes, 2 seconds is there something which has changed over the past 3 months for us there? 9:07 9 minutes, 7 seconds Uh yeah, I think we were very optimistic that uh you know the healthcare business has reached the bottom and we will turn around and we were pretty confident 9:16 9 minutes, 16 seconds because there were a few deals that we were bidding for and we pretty confident that we will be able to close those deals. Unfortunately for us those deals 9:23 9 minutes, 23 seconds have not closed uh and that resulted in uh this you know situation that we've had. Um but however you know uh we still 9:33 9 minutes, 33 seconds continue to carry uh you know those uh items in our high probability funnel and in fact a few of them actually you know 9:40 9 minutes, 40 seconds uh we have closed in the in in in in the couple of weeks you know uh in in the new quarter right so so I think I'm I'm 9:49 9 minutes, 49 seconds I'm pretty hopeful that last quarter you know Q4 was the bottom and you know we will be able to recover this uh uh and 9:57 9 minutes, 57 seconds and you know if if we had closed these deals you know earlier in the quarter then you know we would have had a fantastic you know exit to Q4 all the 10:06 10 minutes, 6 seconds three uh you know businesses really firing and so on um and that is what we were all aiming for but you know 10:14 10 minutes, 14 seconds hopefully it is just shifted by a quarter and we should be able to recover that position uh in Q1 got it so say Q1 plus Q4 combined should 10:23 10 minutes, 23 seconds have positive growth uh over Q2 Q3 if that's how I have to look at 10:30 10 minutes, 30 seconds Second on the USA business um uh the media and communications uh industry the consolidation seems to 10:38 10 minutes, 38 seconds have happened. Are we now going to go back on the higher growth trajectory here or is there something which needs 10:45 10 minutes, 45 seconds to be recalibrated in USA and the media and communication both sorry? 10:52 10 minutes, 52 seconds No. So, so the media and communication business have has you know uh you know smartly grown for us in the US right uh 11:00 11 minutes uh but overall the US business has you know declined a little bit that is primarily because of the healthcare piece because healthare for us is 11:09 11 minutes, 9 seconds largely US uh focused okay got it um finally more on a structural question right uh you you'd 11:18 11 minutes, 18 seconds mentioned in the past that now incrementally we doing fixed contracts which might may or may not be a trend that we are following but also we doing 11:26 11 minutes, 26 seconds longer tenure contracts which are not as profitable in year one as say the earlier shorterterm contracts that we 11:33 11 minutes, 33 seconds were doing but if you were to take say a 2ear 3year profitability combined do we 11:39 11 minutes, 39 seconds even out on our margins or uh we'll take the hit on the margins but we'll get 11:47 11 minutes, 47 seconds higher absolute amounts is that the approach or we have levers to get margins ramped up in year two, year three. 11:55 11 minutes, 55 seconds Yeah. So obviously see when we when we look at a a threeear or a 5year deal, right? Uh the initial you know one year 12:02 12 minutes, 2 seconds would would have a lot of uh you know uh cost involved right? uh um you know there could be sometimes rebatchging 12:10 12 minutes, 10 seconds costs, there could be acquisition costs and you know and all of that right uh so uh so but however you know um when you 12:18 12 minutes, 18 seconds look at a three year or five year we definitely uh would be looking at seeing how we can improve our margins you know sequentially quarteron quarter and 12:27 12 minutes, 27 seconds yearon year right so that is the focus for us so so definitely we would want to bring back and especially now with you 12:34 12 minutes, 34 seconds know using AI genai and so on we many many ways of really you know bringing out uh you know the margins in in a 12:41 12 minutes, 41 seconds positive way. So so I think that's what we're focusing on. 12:45 12 minutes, 45 seconds All right. Finally just a bookkeeping one if I could get the utilization rate for the quarter. It is about 73%. 12:52 12 minutes, 52 seconds 73%. Got it. Thank you. That's it from my end. Thank you. 12:58 12 minutes, 58 seconds Thank you. The next question comes from the line of Moes Chandani from Ambit Capital. Please go ahead. 13:05 13 minutes, 5 seconds Yeah. Hi, good evening and uh thank you for taking my question. My first question was on the broader transportation segment. So you know the 13:12 13 minutes, 12 seconds last year has been turbulent for the entire segment but uh looking at Q4 I think things were flattish. Uh how what's your outlook for the transportation segment going into FI27? 13:23 13 minutes, 23 seconds Uh and for the overall business is the adaptation still double digit growth for the financial year? 13:29 13 minutes, 29 seconds Yeah, I think uh you know the good part for us is uh while while as you rightly said the overall market outlook was uh 13:38 13 minutes, 38 seconds sort of mixed right throughout the last financial year but we were still able to win some you know large deals and so on. 13:45 13 minutes, 45 seconds In fact even in Q4 we won some fantastic you know good opportunities for us multi-million dollar deals. Uh so what 13:52 13 minutes, 52 seconds we are confident is that look uh some of the new deals that we have won we will be able to scale in the next 6 to 12 months time period right so that is what 14:01 14 minutes, 1 second will you know help us uh you know really deliver growth uh in the automotive space uh of course on top of it as you 14:09 14 minutes, 9 seconds as uh we have been uh updating all the investors that you know we have been gradually moving to uh more and more of 14:16 14 minutes, 16 seconds a business on the from a OEM side right I think today we are looking at about 77 7% of our revenues 77% of the automotive 14:24 14 minutes, 24 seconds you know revenues coming from OEM. So I think that is also you know that pitch is also shift to OEM business is also 14:30 14 minutes, 30 seconds helping us. So I would say um you know I'm still you know pretty optimistic about uh the overall you know automotive 14:39 14 minutes, 39 seconds market but however given the current you know geopolitical and all the war and all that right so while while we have 14:46 14 minutes, 46 seconds the deals in hand and we will definitely look at ramping up and so on that would be some amount of uncertainty we are still you know talking to customers uh 14:54 14 minutes, 54 seconds on that having said that I think um you know we would maybe we would look at you know a high single digit uh you know 15:02 15 minutes, 2 seconds exit right may not get into a double digit for automotive understood uh and the second question is on margins uh you know again margin saw 15:11 15 minutes, 11 seconds a very sharp improvement this quarter uh what what seems to be driving that uh especially I think since utilization is 15:18 15 minutes, 18 seconds still at about 70% 73% like you said uh and then in terms of sustainability for the uh for this margin improvement going 15:26 15 minutes, 26 seconds forward uh what would your uh comments be h this is uh Let me answer that question. I think we have been uh 15:33 15 minutes, 33 seconds talking about the margin for the past few quarters and I think we have been uh mentioning that I think we have making constant effort to you know go back to 15:42 15 minutes, 42 seconds our original margin you know band which is about 27 to 28%. So I think the work has been happening towards that in terms of the operating model you know operating efficiencies and the leverage. 15:53 15 minutes, 53 seconds It's not only about the utilization. Of course, utiliz utilization was you know below 70% at one point of time. Now we are almost inching towards mid70. So 16:02 16 minutes, 2 seconds every uh you know 1% increase in utilization also helps you know at least 25 to 30 basis point on on the margins. 16:09 16 minutes, 9 seconds So that is helping one. Second, I think that some of the fixed price contract that increase that has happened that is also you know comes sometimes with a 16:16 16 minutes, 16 seconds better margins because you are able to uh you know have a better optimize uh and rationalize pyramid on those you know deals if you able to deliver and 16:24 16 minutes, 24 seconds execute on those contract you know the way you have contracted for I think third is that pyramid you know in terms of you know managing the pyramid and the 16:32 16 minutes, 32 seconds further hiring so that is well calibrated in terms of the future requirement supply demand state so that is giving me almost 65 basis point kind 16:39 16 minutes, 39 seconds of for you know improvement on a quarter-to- quartarter basis and and yes I think there has been some currency tailwind which is also helping you know margins you know for the current quarter 16:48 16 minutes, 48 seconds so if I have to put in terms of the margin work probably 150 155 basis point is coming from the uh currency movements 16:56 16 minutes, 56 seconds you know against you know most of the cross currencies has improved you know compared to the INRA 65 pesa you know 65 basis point would have come from the 17:04 17 minutes, 4 seconds operating efficiencies you know across different labors that is in the into play and And also we have done the you know the salary increase for the rest of 17:12 17 minutes, 12 seconds the staff for the you know in the organization you know effective first Jan. So that would be 90 basis point kind of a you know impact on the 17:20 17 minutes, 20 seconds quarter. So that you know sums up to almost 130 basis point improvement in the operating margin on a quarterto quarter basis. 17:28 17 minutes, 28 seconds Understood. Uh and just one last question if I can squeeze in. uh so you know media you know one of the concerns that were there last year in terms of 17:36 17 minutes, 36 seconds consolidation and again you know that a lot of uh deals were getting cut so do you think that phase is behind us now or do you think uh you know looking at the 17:44 17 minutes, 44 seconds very strong growth we've had in media or do you think that the segment is still challenged from a growth perspective for the next few quarters 17:51 17 minutes, 51 seconds um I think the uh you know in general I would say the you know we are still challenged uh the the entire uh media 18:00 18 minutes and telecom industry challenge. Um but how are you know what has happened for us over the uh over last quarter and the 18:09 18 minutes, 9 seconds financial year is we had won some large deals that uh uh especially from some of the large customers. Uh those ramp ups 18:17 18 minutes, 17 seconds have really started happening and we've seen those ramp ups happening in Q3 and Q4 as well. On top of it, we won a large 18:25 18 minutes, 25 seconds deal in Q4 uh which we would be literally taking over the engineering for one of our you 18:32 18 minutes, 32 seconds know customers all their legacy products and so on and that's a pretty significant deal for us and that uh that single deal actually also bumped up our 18:41 18 minutes, 41 seconds you know overall you know growth uh in the segment. Having said that uh deals are still you know uh consolidation 18:48 18 minutes, 48 seconds deals and you know cost takeout deals that are there on the table and we are still you know participating in those deals you know selectively. Um so so 18:57 18 minutes, 57 seconds overall yes I think we still not out of the woods in this particular uh uh industry segment. Um however because we 19:05 19 minutes, 5 seconds have won a few you know good deals for us we are able to show this growth. Understood. 19:10 19 minutes, 10 seconds Okay. Thank you so much for taking my question. 19:15 19 minutes, 15 seconds Thank you. Your next question comes from the line of Bik Ma from JP Morgan. Please go ahead. 19:22 19 minutes, 22 seconds Hi, thank you. Uh, so u just wanted to understand on generative AI how are the 19:29 19 minutes, 29 seconds client conversations evolving? Are you seeing clients asking for productivity passroughs or pricing discount because 19:37 19 minutes, 37 seconds they want you to implement more of Jai into the projects or is it still at a very nent that it's not of the 19:44 19 minutes, 44 seconds conversation in a big way so far and different you know across the three different industries you cater to. 19:52 19 minutes, 52 seconds Yeah. So I think uh from a generative AI perspective I think a we are seeing a lot of uh a lot of conversations happening in the media and telecom space 19:59 19 minutes, 59 seconds not so much in uh in automotive and healthcare. Yes, there are conversations happening and so on. Those are more in 20:06 20 minutes, 6 seconds terms of um you know for example in in automotive space there's a lot of interest from from OEMs 20:13 20 minutes, 13 seconds and customers in terms of how do you manage you know for example cyber security and uh you know confidentiality requirements and so on and so forth 20:22 20 minutes, 22 seconds right so um so that's why we have built our own you know devstudio.ai AI you know tool chain to address some of the 20:29 20 minutes, 29 seconds concerns that uh customers keep you know asking us right uh so uh I I think uh in both in automotive and healthcare there 20:37 20 minutes, 37 seconds are there are those initial conversations happening there is an interest uh to see how we can use some 20:44 20 minutes, 44 seconds of these technologies to for for better efficiencies and you know and so on not so much conversations around cost and 20:51 20 minutes, 51 seconds you know cost takeout and so on at this point in time but media and telecom we see a lot more uh you customers you know 20:58 20 minutes, 58 seconds asking if you know can we use uh genai to to overall you know um you know uh uh 21:05 21 minutes, 5 seconds what do you say help in efficiencies at the same time also manage with the budget situation 21:14 21 minutes, 14 seconds okay got it and any sense what could drive this uh different customer behavior between let's uh the media is 21:22 21 minutes, 22 seconds it because media is under more pressure right now and hence the clients mode has paid for you know cost efficiency versus the other two sectors. 21:30 21 minutes, 30 seconds Yeah, I think automotive is still you know very in some sense it's still very regulated and you know automotive software development follows certain 21:36 21 minutes, 36 seconds processes and uh you know using a generic you know AI tool will not uh you know it'll be very difficult for 21:45 21 minutes, 45 seconds automotive companies to pass various you know regulatory requirements and so on right uh uh and that is why you know you need to build custom tools for 21:54 21 minutes, 54 seconds automotive healthcare is also same right it's more uh you know a very regulated industry whereas median telecom you know it's uh that that sort of very 22:03 22 minutes, 3 seconds very strong you know regulatory requirement is is not there and in terms of you know that if you if if you do something is not going to you know cause 22:11 22 minutes, 11 seconds an accident or uh you know kill somebody and so on and maybe I can just add to that I think in general the telecom industry 22:19 22 minutes, 19 seconds especially telos are actually at the forefront of deploying data centers building the infrastructure and the connectivity that you need to deliver AI 22:29 22 minutes, 29 seconds engine and geni. So to that extent in many ways I would say they are ahead of the curve at least between industries in terms of being ready and being terms of 22:37 22 minutes, 37 seconds being comfortable and already having sorted out some of the key questions around how do you deliver. 22:47 22 minutes, 47 seconds Got it. And just lastly Zoro how should we think about the trajectory of margin from because it's been increasing since the last three quarters which is good to 22:55 22 minutes, 55 seconds see. Should we continue to expect similar kind of expansion even next year or do you think it could slow down a bit 23:02 23 minutes, 2 seconds given that most of the lab will be utilized in F26? 23:07 23 minutes, 7 seconds Uh so bhavik I think uh we will have a sustained effort in terms of you know improvising our margins from here probably it will not have a huge uptick 23:15 23 minutes, 15 seconds on a quartertoquarter basis probably it would be more gradual you know increase or the improvement that will happen on a quartertoquarter basis and also it needs 23:23 23 minutes, 23 seconds to be tightly aligned with the topline growth. So focus would be on the top line as well as as the bottom line but you know some of the margin will come 23:31 23 minutes, 31 seconds back as we see some of the growth coming back you know and most of our vertical start to you know deliver on the top line. Now having said that of course 23:39 23 minutes, 39 seconds there could be quarter where the margin can have a left or right shift depending upon some of the one-timers and other events for example if whenever in the 23:46 23 minutes, 46 seconds quarter we have to do a salary hikes there could be an impact in those quarters for the margins but overall if we have to see you know mid to long term probably I think the idea is that if we 23:55 23 minutes, 55 seconds can exit the next financial year you know somewhere near to 27% kind of a margin not for the full year but maybe to for a exit of the you know uh this 24:03 24 minutes, 3 seconds financial year uh quarter Just a clarification is 27% is at the beta level or the PBT level. 24:13 24 minutes, 13 seconds I mean at the PBD level thank you. 24:18 24 minutes, 18 seconds H thank you. The next question comes from the line of Abishek Shindukar from Inrid Equities. Please go ahead. 24:29 24 minutes, 29 seconds Hi sir, thanks for the opportunity and congrats on a good quarter. Uh uh sorry this could be a repeat. I joined a little late but uh just wanted to 24:37 24 minutes, 37 seconds understand um you know the healthcare life sciences uh traction. Uh the anticipation was that the you know the 24:46 24 minutes, 46 seconds deals won earlier could help uh you know traction in the uh in terms of growth for the current quarter. uh was the uh 24:55 24 minutes, 55 seconds you know uh the the you know did healthcare perform as anticipated at the start of the quarter or was there any 25:02 25 minutes, 2 seconds midquarter or late quarter challenges uh in terms of daily decision makings so on and so forth so yeah I think I I discussed that uh 25:10 25 minutes, 10 seconds earlier in the the question that came up earlier yeah we were we were hoping on a couple of deals uh because we were very 25:17 25 minutes, 17 seconds close to signing those uh deals and uh and those are large deals that have really you know helped us uh you know with improving uh the numbers. 25:27 25 minutes, 27 seconds Unfortunately those those both those deals did not come through in the quarter and they have been pushed to uh to Q1. Um so I think it is it is more a 25:36 25 minutes, 36 seconds shift of uh you know uh some some deals at the same time there there have been you know um uh a few few projects that 25:44 25 minutes, 44 seconds have also you know closed right so a combination of that has created this uh uh this situation for us but I think uh I'm I'm very confident or hopeful that we will be able to recover in Q1. 25:57 25 minutes, 57 seconds Understood. Uh so just a clarification so this planned out uh you know or this happened more in March or was it a 26:05 26 minutes, 5 seconds phenomenon starting January itself? Just trying to understand uh you know the the the behavior of the clients uh uh in this context. 26:15 26 minutes, 15 seconds In fact these deals started in October itself. It was more uh yeah we were we were hoping that it'll it'll definitely 26:21 26 minutes, 21 seconds you know close uh uh but it it took 6 months uh and that that was a delay right we were not we're not expecting 26:29 26 minutes, 29 seconds that it would take so much of time to close these deals. 26:33 26 minutes, 33 seconds Understood sir that's very helpful. And the second question uh again u you know maybe a repetition uh and just wanted to 26:40 26 minutes, 40 seconds get clarification. So uh when there was a question about margins um uh our answer suggested that we are okay to let 26:49 26 minutes, 49 seconds go margins in the interim to win larger deals. Uh is the understanding right? uh because what I'm trying to understand is 26:57 26 minutes, 57 seconds we are also talking of a 27% uh PBT number for next year and at the same time we also made a comment about uh you 27:06 27 minutes, 6 seconds know leaving margins at the table for growth. So I'm just trying to uh you know uh put a context to both these uh commentary. 27:13 27 minutes, 13 seconds No that 27% we talked about was the exit margin at in Q4 uh this financial year. It is not the margin for the year. Okay. 27:22 27 minutes, 22 seconds So that is very clearly uh and that is where we were aiming for right uh I think today I mean upwards of 27:30 27 minutes, 30 seconds 25.6 25.6 six in Q4 you know last financial year we want to take it to 27 in Q4 FI27 27:39 27 minutes, 39 seconds right so that's the um that's the indication that Garov you know talked about I don't think we made a statement that we are leaving money on the table 27:47 27 minutes, 47 seconds or we want to it's it's not a generic you know strategy that look from now on we will drop rates and go out uh yeah 27:55 27 minutes, 55 seconds there could be certain specific deals which are from existing customers which are large deals and we we feel that we 28:02 28 minutes, 2 seconds would not want to you know let competition in or we want to vacate that space. Sure for those cases we'll definitely look at seeing how to how we 28:11 28 minutes, 11 seconds can be competitive but as a generic strategy we still definitely want to improve our our margins and uh and we we've not given any guideline to our 28:20 28 minutes, 20 seconds sales team or to a finance team that we can drop our margins. 28:24 28 minutes, 24 seconds Super influencer sorry add a line also note that even in those deals there's a path to improving margins it's not that you win it and it 28:33 28 minutes, 33 seconds would stay where it is right understanding is there are some deals they constitute a small percentage of your incremental revenues every quarter 28:42 28 minutes, 42 seconds some of those deals may need that investment period ranging from a quarter to more but the expectation is over the 28:49 28 minutes, 49 seconds longer term especially because you're going for longer term foundational uh revenue new uh baselines uh you would 28:57 28 minutes, 57 seconds start to recover some of the margin back and hopefully you would improve well beyond two. 29:04 29 minutes, 4 seconds Perfectly understood Nitan sir. Thank you for taking my question and best wishes for the next year. Thank you so much. 29:11 29 minutes, 11 seconds Thank you. Your next question comes from the line of Pratik and individual investor. Please go ahead. 29:22 29 minutes, 22 seconds Hi, am I audible? Yes sir, you audible. 29:27 29 minutes, 27 seconds Um yeah, can you please uh share the margin breakdown for this quarter once again in terms of what led to the 130 bits Qoq increase? 29:37 29 minutes, 37 seconds Uh sure Pratik I think I mentioned earlier also but uh quickly just to summarize what we are saying that 155 29:45 29 minutes, 45 seconds basis point from the currency 65 basis point from the operating leverage and then we have a you know 90 basis point 29:52 29 minutes, 52 seconds uh impact due to the salary hikes that has been done during the quarter. So that uh adds up to 130 basis point. 30:02 30 minutes, 2 seconds That's it from my side. Thank you. Thank you. Thank you. 30:09 30 minutes, 9 seconds Your next follow-up question comes from the line of Rashi Modi from Advisory LP. Please go ahead. 30:23 30 minutes, 23 seconds Arishi sir, your line is unmuted. Please proceed with your question. Hi, can you hear me? 30:30 30 minutes, 30 seconds Yes sir, we can hear you now. 30:32 30 minutes, 32 seconds Yeah. Hi. Uh so man one uh fundamental question on how the market is behaving how is competition behaving in terms of 30:41 30 minutes, 41 seconds pricing aggressiveness uh especially with AI benefits being priced into say contracts are you seeing rationality or 30:50 30 minutes, 50 seconds irrationality in the market currently and how are we tackling this no I I don't think we have seen uh 30:58 30 minutes, 58 seconds irrationality in general right uh um uh Because see erd is still a very very 31:05 31 minutes, 5 seconds specialized uh it is not that you know we can use uh AI or genai across the 31:12 31 minutes, 12 seconds board right so having said that uh yes we have seen a few contracts where there have been uh there have been competition 31:19 31 minutes, 19 seconds that has uh you know priced very very aggressively and we are also a little bit surprised we don't know whether it is because that they have used genai and 31:29 31 minutes, 29 seconds you know or they have assumed that you know genai will lead to certain productivity You see jai I I don't think you can use see jai as you know you can cut and 31:37 31 minutes, 37 seconds paste in all situations right uh that is a very wrong way of looking at you know jai and and there are I know that there 31:44 31 minutes, 44 seconds is there are a few competition uh who are who are pretty aggressive in using some of this but even customers are very 31:52 31 minutes, 52 seconds very careful before they accept you know a complete you know jai based you know solution and so on right so largely I would say uh we're not seeing 32:01 32 minutes, 1 second irrationality that you that you indicated there are a few cases here and there but we're not sure whether it is it is geni or some other factor that are 32:09 32 minutes, 9 seconds playing got it and are we being conservative moderate or aggressive in pricing and 32:16 32 minutes, 16 seconds efficiencies from AI in our bids no so so we we we are definitely looking at uh you know AI and we have uh in in 32:25 32 minutes, 25 seconds in all the projects that we are bidding for that is a component of it which uh which we uh you attribute to AI and we 32:33 32 minutes, 33 seconds track it and we want to see how we can use that to really improve our you know efficiency uh you know productivity and 32:42 32 minutes, 42 seconds ultimately you know margins right so there are some those are things that we are definitely tracking internally so I I I wouldn't say that we are 32:49 32 minutes, 49 seconds aggressively going o overboard u at the same time we not we're not conservative at all yeah go ahead 32:58 32 minutes, 58 seconds yeah sorry go ahead yeah know so I think uh much more cost. 33:02 33 minutes, 2 seconds I think we are we are double clicking on value. I think what Genai does coupled with domain 33:11 33 minutes, 11 seconds expertise is that I think it allows you to move up the time to market and quality factors as much as cost and I 33:18 33 minutes, 18 seconds think in the R&D space that is invaluable. At times it's much more valuable than simply cost because engineering cost is a fraction of your 33:27 33 minutes, 27 seconds overall product and product development cost. So I think the opportunity is actually in enhancing value rather than reducing cost. 33:36 33 minutes, 36 seconds Understood. So bigger contracts should or at least execution speed for existing contracts is more likely to be the 33:45 33 minutes, 45 seconds outcome for us rather than say cost efficiencies um which might be for other IT traditional IT services. Is that understanding correct? 33:55 33 minutes, 55 seconds Um yes though I don't want to generalize that again but all I'm saying is that the simple uh factor of only cost is not the only consideration. 34:06 34 minutes, 6 seconds Okay got it. Thank you. Thank you. This is helpful. That's it from my end. We can move on to the next one. Thanks Rishi. 34:14 34 minutes, 14 seconds Thank you. 34:16 34 minutes, 16 seconds Participants you may press star and then one to ask a question. Our next question comes from the line of Amit Chandra from HTFC Securities. Please go ahead. 34:26 34 minutes, 26 seconds Yes. So thanks for the opportunity. My question is on the uh transportation vertical. Obviously we have seen a good recovery there and now it's uh you know 34:34 34 minutes, 34 seconds stabilized also and you mentioned uh in the PPD that 77% is from the OEMs. So if you can uh know share some more light in 34:42 34 minutes, 42 seconds terms of how the like tier one portfolio has been doing and uh you know most of the recoveries from the uh OEM portfolio 34:49 34 minutes, 49 seconds and how and uh know the like tier one portfolio has stabilized and also in terms of uh the overall spending or the 34:57 34 minutes, 57 seconds recovery that we have seen from transportation it is only uh from the top client recovery and the ramp up of deals that we have uh won or is it you 35:07 35 minutes, 7 seconds know uh higher spending across the OEMs both in the US and the European geography. So how is the mix and uh know what is the confidence that we move to a 35:15 35 minutes, 15 seconds double digit uh know growth uh there in the transportation vertical. 35:20 35 minutes, 20 seconds Yes. So, so definitely recovery is broad-based. I would say it's not just uh and as you said OEMs contribute more than 77 I mean 77% today and these OEMs 35:29 35 minutes, 29 seconds are primarily uh of course spread across right it's not just US and Europe they're talking of we're also talking about India we're talking about Japan uh 35:39 35 minutes, 39 seconds and we've also you know we are also talking to some Chinese you know OEMs and so on so still early days but I 35:46 35 minutes, 46 seconds think uh those are those are the so so essentially for us it's a global uh uh uh you know market and we're not really 35:54 35 minutes, 54 seconds constrained to only one uh uh geography uh tier one portfolio I would say continues to shrink tier ones I mean if 36:02 36 minutes, 2 seconds you look at it are having a tough time given the given that OEMs are taking more and more responsibilities and so on 36:09 36 minutes, 9 seconds so uh so yeah we we however we are deeply entrenched with with a few few tier ones and that business definitely 36:17 36 minutes, 17 seconds you know continues um yeah so uh so deal sizes also with uh with tier ones are smaller and and so on 36:26 36 minutes, 26 seconds right so uh um so so for us growth will continue to come from the OEMs 36:34 36 minutes, 34 seconds okay and so you mentioned from the AI uh side that the adoption of AI in terms of especially in transportation OEMs is 36:42 36 minutes, 42 seconds less versus the other verticals but we are are we also you know in terms of the impact uh of uh renewals when the 36:50 36 minutes, 50 seconds contracts come for renewals are We also seeing you know AI deflationary impact or higher discounts that the clients OEM clients are asking uh in terms of uh the 36:58 36 minutes, 58 seconds AI benefits or u know obviously in terms of uh uh the higher spend uh related to 37:06 37 minutes, 6 seconds AI it's it's it's not seen but are we seeing the impact on the cost side or in terms of higher discounts uh in terms of renewables 37:14 37 minutes, 14 seconds I think it's it's very very early days right uh so um so it's not as if that we have uh contract renewals coming every 37:23 37 minutes, 23 seconds every now and then and so on. So we've at least what those those contacts that have come up for any we've not seen 37:29 37 minutes, 29 seconds impact of AI. But having said that I I I you know it's very difficult to predict 6 months to 12 months down the line what 37:36 37 minutes, 36 seconds will be the change in the buying behavior of OEMs today. I think uh you 37:43 37 minutes, 43 seconds know uh in uh AI or geni is not the most important thing that OEMs focus on. it's 37:49 37 minutes, 49 seconds more on value and you know how are we able to support them with with uh you know the various projects that they have and uh it's about the the people that 37:58 37 minutes, 58 seconds you have and uh how you are able to deliver value to them right so that's that's the more focus not so much on AI 38:05 38 minutes, 5 seconds engineer at this point in time but as I said 6 months 9 months 12 months later I it's very difficult to predict what what sort of you know demands will come in 38:14 38 minutes, 14 seconds okay and so on the margins part obviously know we have not been adding headcount and we have enough capacity. 38:20 38 minutes, 20 seconds So till what uh growth rate or till what uh you know kind of uh uh growth uh you think that the existing capacity is 38:28 38 minutes, 28 seconds sufficient or we need to add capacity maybe in the next one or two quarters. 38:32 38 minutes, 32 seconds Yeah, we are at 73% uh you know utilization. So I think we can we can go all the way up to 80 or slightly more than 80% right. It's not that we're not 38:40 38 minutes, 40 seconds adding people. We're adding people wherever we we need them. But we're not aggressively adding you know headcount right we are we are we really metering 38:48 38 minutes, 48 seconds the headcount additions and so on. Only when there is a real requirement do we go out and and and hire right. So uh so 38:56 38 minutes, 56 seconds yeah I think we can we can once the utilization touches uh 80 or 82% that is then I think we will be able we will be 39:04 39 minutes, 4 seconds looking at adding more uh you know in in larger numbers. Right. 39:08 39 minutes, 8 seconds Okay. Okay. So, thank you and all the best. Thank you. 39:13 39 minutes, 13 seconds Thank you. The next question comes from the line of Ankor Pant from IFL. Please go ahead. 39:20 39 minutes, 20 seconds Uh hi. Uh thank you for taking my questions. Uh my question is around the fact that last quarter uh we were for 39:29 39 minutes, 29 seconds FI27 we were aspiring for a double digit growth for the business overall for FI27 uh and led by transportationare 39:38 39 minutes, 38 seconds verticals. Now this quarter healthcare has been a bit of a disappointment and last quarter if I remember correctly we 39:45 39 minutes, 45 seconds were expecting growth in transportation in 4Q. Uh we've come out at flatish. So uh just comparing your expectations for 39:53 39 minutes, 53 seconds FI27 uh how was it last quarter and how what would be the aspiration as we go uh as we start FI27. 40:02 40 minutes, 2 seconds Yeah, I think uh you know you you you I mean a lot of things have happened in the quarter, right? geopolitical 40:08 40 minutes, 8 seconds situation has changed. uh you know customer spend uh uh you know we have I know when we started uh you know when we 40:17 40 minutes, 17 seconds when last quarter when we talked about it we we had high hopes that you know of course uh transportation would continue the growth uh momentum as well as you 40:26 40 minutes, 26 seconds know healthcare and life senses we'll be able to get back to growth and I've explained the reasons why healthcare life senses I think automotive we have 40:35 40 minutes, 35 seconds governed the circumstances governed the challenges and so on I think we have done reasonably well to exit uh you know um flat or you know a small 40:43 40 minutes, 43 seconds growth right so uh today I mean sitting today looking at what what is happening around the world and the conversations we are having with customers and so on I 40:52 40 minutes, 52 seconds think uh for us uh overall we might be looking at a a single digit higher singledigit uh you know growth for the 41:01 41 minutes, 1 second financial year we may not look at a double digit growth uh and that and and the verticals that would need it would again be 41:08 41 minutes, 8 seconds transportation Now uh transportation yes I mean I we we ideally would want all the three uh businesses to 41:17 41 minutes, 17 seconds uh to grow right we've had a very difficult I would say 12 months where multiple businesses went into a you know 41:25 41 minutes, 25 seconds downswing uh at different quarters and so on but uh from now on we are really hoping that all the three businesses will start showing growth. 41:34 41 minutes, 34 seconds Yeah. And the other question is now given the tough geopolitical issues that we have had in this quarter uh did we 41:42 41 minutes, 42 seconds see clients now pushing back on the signing of deans or decision-m cycles getting slightly elongated which may 41:51 41 minutes, 51 seconds again mean that the recovery that we were expecting may also get pushed back by a quarter or two. Uh are you seeing 41:58 41 minutes, 58 seconds signs of that as well? uh in the quarter we are seeing both sides right we have also you know announced deals that they 42:05 42 minutes, 5 seconds have won in the quarter we also know that there are cases where the deals have been pushed off so there is no one answer to your question right it is both 42:13 42 minutes, 13 seconds are happening sure but but but the expectation of recovery that you had uh is that still uh I mean are you still hopeful of the 42:21 42 minutes, 21 seconds same trajectory or that does that get pissed off seeing what is happening around which is where we when We look when we 42:29 42 minutes, 29 seconds when we started when we came in the last quarter, we were hoping for a double-digit uh you know sort of uh you know uh growth aspirations for the 42:38 42 minutes, 38 seconds quarter. But looking at uh the situation today uh maybe you know I would be a little more conservative and say maybe a 42:46 42 minutes, 46 seconds single higher single digit is what we should should look at. Uh this could change in the next 3 to 6 months right 42:53 42 minutes, 53 seconds when we look at the deal momentum and so on. sitting today the visibility that we have conversations that we are having and the deals we have closed and the 43:01 43 minutes, 1 second deals that we are pursuing this is what we feel. 43:04 43 minutes, 4 seconds Sure. Uh perfect. Thank you so much and all the best for the next year. 43:11 43 minutes, 11 seconds Thank you participants. You may press star and then one to ask a question. 43:17 43 minutes, 17 seconds Our next question comes from the line of Mayor Matani from Mahesh Kumar and Company. Please go ahead. 43:22 43 minutes, 22 seconds Yeah, good evening sir. Congratulations on a good set of numbers. Uh my question is regarding uh pertaining to the fixed 43:31 43 minutes, 31 seconds price contracts uh uh that we have. So over a period of time we have seen that 43:37 43 minutes, 37 seconds our fixed price uh contracts have now increased quite a lot and I believe that fixed price contracts have a better 43:45 43 minutes, 45 seconds margin trajectory. So with regards to uh signing more OEMs, how you do do you see that trajectory going forward and a 43:54 43 minutes, 54 seconds sustainable basis? Is there a further scope to increase the fixed price contracts? 44:00 44 minutes No. So u you know yes some of the deals large deals that we have closed are on fixed price uh you know contracts. uh 44:07 44 minutes, 7 seconds the the the the challenge is that you know if you don't execute on those fixed price contracts correctly and and and you know then it could also lead to 44:16 44 minutes, 16 seconds revenue leakages and you know profitability dip right so it is it's not that it's not advisable that we 44:23 44 minutes, 23 seconds continue to shift uh more and more of a business to fixed price um so I think that is a a careful uh you know decision 44:32 44 minutes, 32 seconds that we need to take because uh the entire processes in the organization the the key themesmemes that we have the 44:39 44 minutes, 39 seconds architects that we have uh you know any deal uh that we pick we also need to be able to execute it deliver on time with 44:49 44 minutes, 49 seconds the margins right uh only then we can show the margins uh u so it's it's in some sense a double-edged sword so we'll 44:56 44 minutes, 56 seconds be a we'll be a little careful in terms of how this goes right uh it's not it's not our objective suddenly to move to a 45:04 45 minutes, 4 seconds 70 or an 80% fixed price that will be putting too much of risk on us. 45:10 45 minutes, 10 seconds Uh right. Thank you. And with regards to your transportation verticles, uh we have been talking that uh whenever there 45:18 45 minutes, 18 seconds is a slowdown that uh structurally you see that uh some of the orders uh uh or 45:25 45 minutes, 25 seconds some of the uh projects new projects might get offshored. Uh so are you seeing uh that traction or there is 45:34 45 minutes, 34 seconds indecisiveness from the customers uh side uh currently? 45:39 45 minutes, 39 seconds No, we are seeing a lot of that right especially when there's a need in the customer space right that they have to 45:46 45 minutes, 46 seconds uh continue their engineering activities and there's a slowdown the only option for such customers is to see hey can 45:53 45 minutes, 53 seconds they do more with less right with less of a budget can they do more right and that is where best cost countries like 46:01 46 minutes, 1 second us and companies like us come into play so so yes I think we continue to seeuh 46:08 46 minutes, 8 seconds such customers who are looking at uh you know which is a right organization that can deliver outcomes without too much of 46:17 46 minutes, 17 seconds oversight uh because if you're doing offshore it means uh you know a lot of the work uh the OEM has to hand over right and and 46:26 46 minutes, 26 seconds they should have the confidence that uh Tatalix is a company that can take up this complex work and deliver outcome 46:33 46 minutes, 33 seconds remotely and uh that is that is the track record that we have and That is why customers trust us with lot more offer delivery. 46:42 46 minutes, 42 seconds Right. Uh we have been speaking about it quite a lot but uh over the past one or two years I think uh that has uh not 46:52 46 minutes, 52 seconds reflected in the overall revenue. So uh when do you think uh that change might happen or is it due to uh that the 47:01 47 minutes, 1 second profitability of uh the legacy players are impacted that is why we are not uh getting that kind of business. 47:09 47 minutes, 9 seconds No, if you look at it, the industry went through massive uh you know uh uh what do you say uh situation over the last I 47:18 47 minutes, 18 seconds would say uh 12 to 18 months, right? So it is not as s of that uh such deals have not happened. Such deals are happening. Some of them are are are 47:27 47 minutes, 27 seconds ramping up uh you know you know as per plan some of those ramp ups are still slow. So it's a work in progress. Uh so we are seeing the shift happening. 47:36 47 minutes, 36 seconds Okay. And uh last question with regards to the yeah sorry please continue. 47:41 47 minutes, 41 seconds If I may just add I'm just adding a little perspective. 47:44 47 minutes, 44 seconds Yeah I think you remember all our revenues and growth or lack of it is organic. A 47:51 47 minutes, 51 seconds large part that we have seen across many of the peers that we see in the industry has been actually coming from inorganic. 47:59 47 minutes, 59 seconds The real organic growth has been lacking if you ask me. Not very different. I think what's different for us is the fact that you'll see that consistent 48:08 48 minutes, 8 seconds offshore track delivery. Nobody else carries that kind of an offshoring capability. Two is you're seeing that gradual but consistent shift to fixed 48:16 48 minutes, 16 seconds price. Rightly like Mano said, the intent is not to simply improve margins. 48:20 48 minutes, 20 seconds It is to make sure that we can continue to deliver greater and greater value. 48:24 48 minutes, 24 seconds But the most important point I think everybody has to remember is the R&D is not very large deals locked in for five 48:31 48 minutes, 31 seconds years and so on. It is the set of projects that continue to run off. So every quarter you will lose 10 15% 48:38 48 minutes, 38 seconds revenues. You have to make it up and new contracts. So that is the challenge. It is not the proposition or the value that we carry. 48:49 48 minutes, 49 seconds It is the ability for you to continuously refill that funnel. Right. 48:53 48 minutes, 53 seconds Right. Right. Okay. Thanks a lot. Thanks a lot. And last question is with regards to the media vertical. So we have been 49:01 49 minutes, 1 second telling that media is uh still not out of the wood. So uh do you think that uh 49:07 49 minutes, 7 seconds in the media vertical if we are able to uh uh manage the revenues over a uh over 49:15 49 minutes, 15 seconds a 3 to 5 year horizon do you see that uh trajectory changing or uh what 49:22 49 minutes, 22 seconds circumstances uh may bring the revenue in the media and telecom uh vertical back? 49:33 49 minutes, 33 seconds Yeah. So if I may again I think uh two three things right one is that we have seen a uh plus minus plus minus so there are 49:42 49 minutes, 42 seconds some quarters of growth there are some quarters of degrowth so the media and telecom vertical for us has been very volatile right and overall it has not delivered growth 49:51 49 minutes, 51 seconds right and that's fundamentally reflecting the state of industry which is whether it's the telecom operators or 49:58 49 minutes, 58 seconds whether it's the large media streaming companies and content studios is they've all been under tremendous pressure for 50:05 50 minutes, 5 seconds topline growth and therefore a lot of the focus has been bottom line and bottom line means then it's more of 50:12 50 minutes, 12 seconds an efficiency and cost takeout game rather than an innovation game right so to that extent I think what we have really done very very well if you 50:20 50 minutes, 20 seconds ask me over the last six quarters is the the building of confidence both in 50:28 50 minutes, 28 seconds ourselves as in customers that we can execute we can win, execute and execute very very well on large consolidation 50:36 50 minutes, 36 seconds deals. Remember that we have typically not played that game too much. We've always been about do the new and less about consolidate. We will take over 50:44 50 minutes, 44 seconds what you're doing. We'll make sure that efficiencies are delivered. So it's been always less of that, more of do the new. 50:50 50 minutes, 50 seconds I think that muscle that we have built whether it's in automotive or it's in media and communications I think is the biggest single factor that you're able 50:57 50 minutes, 57 seconds to go there and win $100 million deals that youble to go there and win $50 million deals. I think that creates that 51:05 51 minutes, 5 seconds muscle and discipline to say look can we build a foundation of revenues that even if there is some volatility you can stay 51:11 51 minutes, 11 seconds protected and hopefully there is growth in certain quarters there is growth in certain areas but the real big answer will be that 51:19 51 minutes, 19 seconds uh innovation has to come back to the industry for true big upticks. 51:26 51 minutes, 26 seconds Yeah. And you see moderate that in our view. 51:28 51 minutes, 28 seconds Yeah. And also the industry is also going through a lot of mergers and acquisitions. M&A is happening. So, so 51:35 51 minutes, 35 seconds that is also you know sort of what happens when when two media companies come together is uh you know there is uh 51:43 51 minutes, 43 seconds duplication of engineering and uh uh uh so there is a lot of resources available and there's no need to really depend on 51:52 51 minutes, 52 seconds you know uh an external external supplier to come in and support them and so on right so those things are also happening as you said 52:00 52 minutes right right uh thanks thanks a lot uh And one last question if I may. Uh we 52:06 52 minutes, 6 seconds were looking at some new vertical. So uh uh if you can share something on it. Thank you. 52:14 52 minutes, 14 seconds Yeah. So, so I I think um we we were focusing on uh for example the aerospace and defense is one uh you know vertical 52:22 52 minutes, 22 seconds that uh we looking looking at and we have some uh you know some very exciting things happening there but uh uh it's 52:31 52 minutes, 31 seconds very difficult to I mean unless unless these result in some you know large revenues and so on it's very difficult to um you know proactively tell you what 52:40 52 minutes, 40 seconds what is happening. They're doing some very very good uh uh you know work with uh you know the defense organizations in 52:48 52 minutes, 48 seconds India with H with uh you know the aeronautical development agency uh there are some large deals that we 52:56 52 minutes, 56 seconds are bidding for uh um working um we're also working with some you know global 53:03 53 minutes, 3 seconds players there right so uh I think till we reach a size I think we will we will we are continue to invest there we 53:10 53 minutes, 10 seconds continue to bull capabilities and also you know uh when those you know initial projects and trial projects and so on. 53:17 53 minutes, 17 seconds Uh so we'll keep you updated there. Uh we have also started uh you know work focusing on the the battery energy 53:24 53 minutes, 24 seconds storage right that is a big opportunity because of all the data centers that are being you know especially because of AI 53:31 53 minutes, 31 seconds and genai a lot of you know power is needed right and for that you know battery energy storage is is of uh uh 53:40 53 minutes, 40 seconds it's a huge demand in the market and that is something that we have uh picked up uh and that's something that we would 53:46 53 minutes, 46 seconds uh and of course uh even for uh EV uh uh you know powering up EV uh in remote 53:55 53 minutes, 55 seconds locations and so on you need that battery energy storage so that is something we have uh uh incubated and uh I think 54:04 54 minutes, 4 seconds uh the coming financial year we hope that that will be a reasonably sized uh uh you vertical for us. Um so we will make 54:13 54 minutes, 13 seconds those announcement at the appropriate time. Uh we've also started for I mean a little bit on on on a manufacturing 54:20 54 minutes, 20 seconds side. We have uh uh we have built certain capabilities. We have won some initial customers. That is another area we continue to invest again. So, so, so 54:29 54 minutes, 29 seconds those all those three areas we we continue to you know build that muscle, build that strength, do those initial projects, build those capabilities and 54:37 54 minutes, 37 seconds we hoping that look next four to six quarters at least one or two of this will start showing results. 54:44 54 minutes, 44 seconds Sure. Thanks. Thanks a lot. Thank you. 54:49 54 minutes, 49 seconds Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. 54:58 54 minutes, 58 seconds Yeah, thank you. Thank you to all the investors uh you know for the call today. Um um uh I think we are we we are very we are still you know optimistic 55:07 55 minutes, 7 seconds that uh you know FY27 will be a growth year for us and uh and as I said right uh it's not uh the 55:15 55 minutes, 15 seconds growth has to be led uniformly across the three verticals and that would be the focus for us uh as we enter into the 55:23 55 minutes, 23 seconds new financial year. Yeah, thank you so much for your time today. 55:29 55 minutes, 29 seconds Thank you on behalf of Tata Alexi Limited. That concludes this conference. Thank you all for joining us and you may now disconnect your lines.