Tata Technologies Ltd — Q4 FY26

Tata Technologies Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=k3DKnLnWO7Y Published: 9 days ago

0:03 3 seconds Ladies and gentlemen, good day and welcome to Tata Technologies 4QFY26 awnings conference call. As a reminder, 0:11 11 seconds all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:19 19 seconds Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchstone. 0:27 27 seconds I now hand the conference over to sir Vijay Loha, head of investor relations at Tata Technologies. Thank you and over to you sir. 0:36 36 seconds Thank you sir. Hello everyone and welcome to Tara Technologies fourth quarter of fiscal year 2026 results 0:43 43 seconds call. I'm Vijay Loya head of investor relations. Joining me today are Mr. 0:49 49 seconds Warren Harris CEO and managing director, Miss Sukanya Sadashi, chief transformation officer, Mr. Gujarati, 0:57 57 seconds Chief Financial Officer, and Miss Gina Binoy, Chief Human Resources Officer. 1:03 1 minute, 3 seconds We'll begin today's session with an overview of the company's performance from our leadership team, followed by a Q&A. Any forward-looking statements made 1:11 1 minute, 11 seconds during this call should be considered in the context of the risks outlined in the second slide of our quarterly fact sheet 1:18 1 minute, 18 seconds available on our website. Our press release and earnings presentations have been submitted to the stock exchanges and are also available on our website. 1:27 1 minute, 27 seconds We hope you've had a chance to review them. With that, let me now hand over the call to Warren. 1:35 1 minute, 35 seconds Good evening everyone and thank you for joining us today. Let me begin with the fourth quarter and what it represents for TA Technologies. 1:44 1 minute, 44 seconds In our previous interaction, we had guided that we expected Q4 to deliver more than 10% sequential revenue growth 1:51 1 minute, 51 seconds alongside an operating margin exceeding 16%. 1:55 1 minute, 55 seconds I'm pleased to say that we delivered on both of these commitments. Q4 revenues grew by nearly 12% quarteron quarter in 2:03 2 minutes, 3 seconds constant currency with services showing a similar step up and margins improved sequentially reflecting operating 2:11 2 minutes, 11 seconds discipline and the early benefits of operating leverage as volume scaled. 2:17 2 minutes, 17 seconds This performance marks a clear infle inflection point for the business after a mixed first half and importantly the 2:26 2 minutes, 26 seconds growth we saw in Qur was broad-based rather than being driven by a single customer or program. 2:33 2 minutes, 33 seconds Automotive showed renewed momentum with non-anchor customers growing meaningfully faster driven by increased 2:40 2 minutes, 40 seconds activity across multiple European and global OEMs. 2:45 2 minutes, 45 seconds Aerospace and industrial heavy machinery continued to scale, reinforcing the diversification we've been deliberately building over the last two years. 2:55 2 minutes, 55 seconds Technology solutions also delivered strong sequential growth as customer move customers moved back from planning into execution. 3:05 3 minutes, 5 seconds At the same time, we exercise discipline on costs, resulting in margin improvement as we continue to invest in capabilities and capacity. 3:16 3 minutes, 16 seconds As we've said consistently, we made a deliberate choice earlier in the cycle to protect our delivery engine 3:23 3 minutes, 23 seconds and invest through the downturn rather than optimize for short-term margins. As demand normalizes, those decisions are 3:31 3 minutes, 31 seconds now beginning to translate into healthier economics. 3:36 3 minutes, 36 seconds Beyond the quarterly numbers, I want to step back and talk about what has structurally changed in how customers are engaging with Tyler technologies. 3:44 3 minutes, 44 seconds Through much of FY25 and the first half of FY26, geopolitical uncertainty and in particular the impact of tariffs and 3:53 3 minutes, 53 seconds related trade actions led many automotive and industrial heavy machinery OEMs to pause, defer or resequence product plants. 4:04 4 minutes, 4 seconds As a result, light system level awards and full vehicle programs were largely absent from the market during that 4:11 4 minutes, 11 seconds period. As that uncertainty began to ease in the second half of FY26, customer decision- making restarted and the shift has been meaningful. 4:22 4 minutes, 22 seconds Today, we have visibility into multiple full vehicle programs across our pipeline. At least two of these were 4:30 4 minutes, 30 seconds closed during Q3 and four, and we expect at least another two to close over the next 8 to 12 weeks. These are multi-year, multi-dommain programs. 4:41 4 minutes, 41 seconds typically extending 18 to 36 months with deal values in the tens of billions of dollars. These are not point solutions. 4:50 4 minutes, 50 seconds Importantly, we do not view a full vehicle program as a standalone revenue stream. We see them as a strategic 4:58 4 minutes, 58 seconds wedge, an entry point that allows us to embed ourselves deeply into the customer's product life cycle. Once 5:06 5 minutes, 6 seconds positioned at that level, we can expand systematically across engineering, embedded software, manufacturing, 5:13 5 minutes, 13 seconds digital continuity, and ongoing transformation services over the life of the product. 5:20 5 minutes, 20 seconds What is driving this shift in customer behavior is the credibility of our value proposition. 5:26 5 minutes, 26 seconds OEMs today are looking for partners who can deliver Chinaike speed and cost efficiency while meeting global quality, 5:33 5 minutes, 33 seconds governance and reliability standards. We are increasingly being recognized as one of the few players who can do this at 5:41 5 minutes, 41 seconds scale. That capability is being enabled by a sustained commitment to process rigor and continuous improvement and by 5:49 5 minutes, 49 seconds accelerating deployment of AI across our delivery model including generative and agentic AI to improve productivity, 5:57 5 minutes, 57 seconds consistency and predictability across complex programs for a for us AI is not a concept or an 6:06 6 minutes, 6 seconds experiment. It is becoming a core execution enabler, helping compress cycle times, improve quality, and run 6:14 6 minutes, 14 seconds large multi-geography programs with greater confidence. Taken together, our Q4 execution against guidance, the 6:23 6 minutes, 23 seconds nature and scale of our full vehicle programs, we are now winning. And the visibility we see in the order book, it reinforces our confidence in the outlook for FY27. 6:33 6 minutes, 33 seconds We continue to expect doubledigit organic topline growth excluding any inorganic contribution from Aztec and we 6:41 6 minutes, 41 seconds expect to exit FY27 with an operating margin run rate that exceeds 18% driven 6:48 6 minutes, 48 seconds by operating leverage portfolio mix improvement and discipline execution. 6:55 6 minutes, 55 seconds Let me now provide some color on high level performance. In Q4, services revenue grew 12% quarteron quarter in 7:03 7 minutes, 3 seconds constant currency, driving total revenue growth of 12.4% for the quarter. 7:10 7 minutes, 10 seconds Growth was broad-based across services supported by deal rampups, normalization at a few large customer engagements, and 7:18 7 minutes, 18 seconds improving decision velocity across OEMs, particularly in automotive, which grew 7:24 7 minutes, 24 seconds 13.6% 6% over Q3 in US dollar terms driven by solid performance across both Anker and non- anchor clients. 7:34 7 minutes, 34 seconds The aerospace and industrial heavy machinery verticals recorded 4.6% growth quarteron quarter underpins by 7:42 7 minutes, 42 seconds successful execution of key projects across our service lines. Our technology solutions business saw 12% sequent 7:51 7 minutes, 51 seconds sequential expansion. The products business saw a decline of 10% coming off a seasonally strong Q3 and reflecting 7:59 7 minutes, 59 seconds the normal phasing of customer PLM budgets. The education business however saw a strong finish to this year 8:07 8 minutes, 7 seconds delivering sequential growth of 36% on the back of improved demand traction and steady execution across programs. 8:16 8 minutes, 16 seconds From a profitability standpoint standpoint, our EBIT DAR margin for the quarter came in at 16% representing a 8:24 8 minutes, 24 seconds roughly 200 basis points improvement from Q3. 8:29 8 minutes, 29 seconds Let me now briefly touch on deal momentum. Deal activity remained strong during the quarter with a closure of 8:35 8 minutes, 35 seconds four large deals in Q4 followed by two milestone wins subsequent to the quarter end in April. These deals include a 8:45 8 minutes, 45 seconds long-term strategic engagement with a North American commercial vehicle OEM to deliver end-to-end expertise across PLM 8:52 8 minutes, 52 seconds testing and uh quality assurance mees and project management. 8:59 8 minutes, 59 seconds A collaboration with the European automotive OEM to design, develop and integrate advanced comfort electronics features across multiple vehicle programs. 9:09 9 minutes, 9 seconds The engagement spans systems engineering, software development and integration supporting the OEM in enhancing in vehicle user experience 9:18 9 minutes, 18 seconds while enabling scalable deployment across current and future platforms. 9:23 9 minutes, 23 seconds We also want a partnership deal with a European automotive OEM to provide supplier quality and coordination 9:30 9 minutes, 30 seconds support with a focus on strengthening supply governance and quality execution. 9:36 9 minutes, 36 seconds We also won a multi-year engagement with a tier one automotive supplier to scale Supercale, a global engineering center that we had previously secured. 9:49 9 minutes, 49 seconds This win positions us as a strategic long-term partner and more importantly serves as a strong accelerator for the upcoming pipeline. 9:59 9 minutes, 59 seconds In addition to the deals secured in Q4, we also secured two significant deal wins during a April, further 10:06 10 minutes, 6 seconds strengthening visibility for the year ahead. The first one involves a large multi-year partnership with a European 10:14 10 minutes, 14 seconds luxury automotive OEM to own their enterprise PLM service transformation and operations across all their product 10:22 10 minutes, 22 seconds domains which includes engineering, manufacturing, supply chain purchasing and manufacturing. 10:30 10 minutes, 30 seconds The second one is a full vehicle program with a leading Japanese automotive volume marking our entry into the Japanese market at a meaningful scale 10:39 10 minutes, 39 seconds and further strengthening our Asia footprint. 10:43 10 minutes, 43 seconds This win reinforces our full vehicle engineering credentials and validates our ability to partner with global OEMs 10:52 10 minutes, 52 seconds on large complex programs across geographies. 10:57 10 minutes, 57 seconds Collectively, these wins enhance geographic and customer diversification, improving revenue visibility, and support a more resilient growth 11:06 11 minutes, 6 seconds trajectory. We finished FY26 strongly, and as we enter FY27, what gives us confidence is that this momentum is 11:15 11 minutes, 15 seconds already visible across the business. We are making tangible progress in diversifying our portfolio beyond our 11:22 11 minutes, 22 seconds traditional anchor customers. We are strengthening our presence in aerospace, industrial heavy machinery, and newer lines of service. And we're seeing the 11:31 11 minutes, 31 seconds benefits of earlier customer engagement, strong dealshaping, and more consultative posture in the market. At 11:39 11 minutes, 39 seconds the same time, we're continuing our investment in AI, and it's beginning to change how work gets done, improving speed, quality, and decision making 11:48 11 minutes, 48 seconds across the value chain. and we provide a little bit more color on these facets. 11:54 11 minutes, 54 seconds Over the past 18 months, we've built a structurally more resilient and diversified business anchored by a steadily improving mix and the addition 12:02 12 minutes, 2 seconds of market global OEMs such as BMW, Volkswagen, and Airbus. As highlighted 12:10 12 minutes, 10 seconds during our IPO, Germany was a strategic gap in our portfolio, and we've now firmly addressed this through the BMW joint venture and the Eztec acquisition. 12:20 12 minutes, 20 seconds These initiatives together with the with the addition of a large Japanese OEM in our customer mix last month meaningfully 12:27 12 minutes, 27 seconds broaden our global footprint, reduce resilience on anchor customers, and position us for more balanced growth 12:36 12 minutes, 36 seconds over the medium to long term. Our focus on embedded software and services has improved our portfolio mix and we are 12:43 12 minutes, 43 seconds now uniquely positioned to address the mechanical digital and embedded requirements of our customers. Revenue 12:51 12 minutes, 51 seconds from our embedded software segment has grown at a solid 16 60% KGA in the last 12:58 12 minutes, 58 seconds three years. Our segment mix has continued to improve with a strengthening presence and strong growth across our aerospace and IHM verticals. 13:06 13 minutes, 6 seconds In the last four years, our aerospace revenues have grown 8x and is now at over $40 million in terms of annual run 13:15 13 minutes, 15 seconds rate. We expect we expect the strong growth momentum to continue. We've established clear focus areas to embed 13:23 13 minutes, 23 seconds AI across the automotive NPI value chain spanning engineering, manufacturing and supply chain and the afterm market. 13:31 13 minutes, 31 seconds Underpinning these capabilities is our propriety AI platform, Chromosone AI, which acts as an orchestration layer 13:39 13 minutes, 39 seconds across product development processes. By integrating AI seamlessly into each stage of the life cycle, the platform 13:47 13 minutes, 47 seconds enables workflow automation, fast decision making, and cross functional collaboration across programs and 13:54 13 minutes, 54 seconds geographies. Chromosome AI is designed to deliver tangible outcomes, improving engineering efficiency, reducing costs, 14:02 14 minutes, 2 seconds and compressing product development timelines while providing a scalable foundation for sustained multi-year 14:09 14 minutes, 9 seconds growth from digital and AIled engineering services. In summary, Q4 was 14:16 14 minutes, 16 seconds not just a strong finish to the year, it represents a turning point. We enter FY27 with stronger momentum, deeper 14:24 14 minutes, 24 seconds customer engagement, increasing strategic relevance and a clearer path to the sustainable growth and margin expansion. 14:33 14 minutes, 33 seconds With that, let me hand over to Utum to take you through the financial performance in more detail. Thank you. 14:43 14 minutes, 43 seconds Thank you, Warren. Good day everyone and thank you for taking the time to join us. In continuation to the business 14:50 14 minutes, 50 seconds update shared by Warren, let me share with you the financial performance in the fourth quarter of fiscal 26. 14:59 14 minutes, 59 seconds FI26 was a year of transition and deliberate execution for targeted technologies. 15:06 15 minutes, 6 seconds Against a backdrop of uneven demand cycles across automotive and industrial sectors, we focus less on chasing 15:14 15 minutes, 14 seconds short-term volatility and more on strengthening the quality, resilience, and sustainability of our revenue 15:22 15 minutes, 22 seconds engine. That discipline is clearly visible in how we close the year. In Q4, 15:28 15 minutes, 28 seconds we delivered strong sequential momentum, marking a clear inflection after a softer first half. Services revenue grew 15:38 15 minutes, 38 seconds 15% QoQ and 11.9% in constant currency to rupees 1,220 crores, driving total 15:48 15 minutes, 48 seconds revenue growth of 15.1% reported and 12.4% 4% in constant currency to rupees 1,572 crores for the quarter. 16:01 16 minutes, 1 second Notably, reported revenue growth exceeded the 10% guidance we had shared last co quarter. This performance 16:10 16 minutes, 10 seconds reflects a full 3-month contribution from EST compared with just one month in the prior quarter. on an organic basis. 16:19 16 minutes, 19 seconds The total revenue from operations grew 8.8% in constant currency. 16:26 16 minutes, 26 seconds I am particularly encouraged by the quality of our revenue growth which was diversified across our services 16:33 16 minutes, 33 seconds portfolio spanning both anchor and non-ancher clients as well as automotive and non-automotive segments. 16:43 16 minutes, 43 seconds Technology solutions segment reported revenues of rupees 353 cr for the quarter led by a strong performance in 16:51 16 minutes, 51 seconds the education business which grew 40% QoQ. 16:56 16 minutes, 56 seconds This reflected a strong close to the year supported by improving demand momentum and consistent execution across key programs. 17:07 17 minutes, 7 seconds Stepping back to the full year, FY26 has been marked by a meaningful shift in the quality and composition of our tail 17:15 17 minutes, 15 seconds pipeline. We focused on deepening client relationships, evolving our engagement models and sharpening our positioning in 17:25 17 minutes, 25 seconds areas where customer spend is structurally migrating, particularly embedded systems, softwaredefined vehicles, and digital continuity. 17:35 17 minutes, 35 seconds As the year progressed, this repositioning translated into improved deal velocity and broader participation 17:44 17 minutes, 44 seconds across our customer base, reducing dependence on any single program or 17:49 17 minutes, 49 seconds account. The wins secured during FY26 reflect a more diversified and resilient 17:57 17 minutes, 57 seconds portfolio and position as well as customers transition from planning to execution. 18:04 18 minutes, 4 seconds Looking ahead, we remain confident in our outlook and continue to guide for doubledigit organic revenue growth in 18:13 18 minutes, 13 seconds FY27 alongside meaningful bottomline expansion supported by an improving margin profile and increasing 18:22 18 minutes, 22 seconds contributions from the BMW joint venture. From a profitability standpoint, our AITA stood at rupees 252 18:30 18 minutes, 30 seconds crores, up 30.7% sequentially. Abita margins for the quarter came in at 16% 18:37 18 minutes, 37 seconds representing a roughly 200 basis point improvement from Q3. As a reminder, we had made a deliberate choice to preserve 18:46 18 minutes, 46 seconds delivery capacity and continue investing through the cycle rather than optimize for short-term margins. Now as the 18:55 18 minutes, 55 seconds demand environment begins to rebound, we are increasingly seeing the benefits of that decision flow through in the form 19:03 19 minutes, 3 seconds of operating leverage and margin improvement and we remain confident in the underlying trajectory for continued 19:10 19 minutes, 10 seconds margin improvement. As volumes scale through FI27, our operating profit or EBIT increased 19:19 19 minutes, 19 seconds by 27.8% 8% sequentially reaching rupees 220 crores. Our joint venture with BMW has continued to grow at a healthy rate. 19:29 19 minutes, 29 seconds Our share of profits from the JV stood at rupees 6.6 crores in the co quarter and the net benefits stood at rupes 19 19:37 19 minutes, 37 seconds crores. Other income came in at rupes 31 crores versus rups 32 crores in the previous quarter. 19:45 19 minutes, 45 seconds As you will recall, we had recorded a one-time exceptional expense of rupes 140 crores in the previous quarter 19:54 19 minutes, 54 seconds related to provisions for employee benefits following changes introduced under India's new labor law. Upon 20:02 20 minutes, 2 seconds further assessment and greater clarity on implementation, we determined that the actual impact would be lower than 20:09 20 minutes, 9 seconds initially estimated. Accordingly, we reverse provisions amounting to rupees 56 cr in Q4, resulting in a one-time exceptional gain for the co quarter. 20:22 20 minutes, 22 seconds Excluding this non uh recurring item, profit before tax grew 21.6% 20:29 20 minutes, 29 seconds sequentially to rupees 272 crores and net income came in at rupees 163 crores. 20:36 20 minutes, 36 seconds Our board has recommended a final dividend of rupees 8.35 20:43 20 minutes, 43 seconds per share for FI26 representing a payout of 62%. 20:50 20 minutes, 50 seconds In addition, the board has proposed a special dividend of rupees 3.35 per share taking the total dividend for the 20:58 20 minutes, 58 seconds year to rupees 11.7 per share in line with the dividend paid last year. Both 21:05 21 minutes, 5 seconds the final and special dividends are subject to shareholder approval at the forthcoming annual general me meeting. 21:14 21 minutes, 14 seconds Our balance sheet reflects strong financial health with a solid cash position, robust liquidity and a 21:22 21 minutes, 22 seconds favorable DSO level. At the end of the quarter, the net cash position stood at 21:29 21 minutes, 29 seconds rupees 1,188 crores compared to rups 524 crores at the end of Q3. Our correction efficiency 21:38 21 minutes, 38 seconds improved during the period with total DSO both build and unbuilt coming in at 95 days at the end of March. An 21:47 21 minutes, 47 seconds improvement from the 111 days that we reported at the end of December. Our 21:54 21 minutes, 54 seconds build DSO improved from 69 days to 59 days while the unbuilt DSO were at 36 days compared with 43 days. 22:04 22 minutes, 4 seconds For the fiscal 2026, the business generated free cash flow of rupees 742 crores representing a healthy AITA to FCF conversion of 87%. 22:17 22 minutes, 17 seconds Let me now share with you some color on the operational matrix. At the end of the quarter, our total headcount stood 22:24 22 minutes, 24 seconds at 12,646 associates, representing a net addition of 66 employees sequentially. This 22:34 22 minutes, 34 seconds reflects our deliberate decision earlier in the cycle to protect and strengthen our delivery engine and continue 22:41 22 minutes, 41 seconds investing through the downturn rather than optimizing for short-term margins. 22:46 22 minutes, 46 seconds As demand conditions continue to improve, we will remain selective and disciplined in our hiring, focusing on 22:54 22 minutes, 54 seconds strategic areas aligned with our growth priorities. 22:58 22 minutes, 58 seconds Over the past 12 months, voluntary attrition increased marginally to 16.2% compared with 15.8% in the previous 23:07 23 minutes, 7 seconds quarter. This remains within a manageable range and reflects normal movement in a gradually improving and competitive talent environment. 23:18 23 minutes, 18 seconds We continue to remain focused on employee engagement, career progression, and targeted retention initiatives and 23:26 23 minutes, 26 seconds are confident in our ability to manage attrition effectively. As we move into FI 277, 23:34 23 minutes, 34 seconds we continue to place strong emphasis on building internal talent capabilities to meet the evolving needs of our workforce 23:42 23 minutes, 42 seconds and create a sustainable pipeline of skilled professionals. 23:46 23 minutes, 46 seconds During the last fiscal year, our in-house technical learning platform, Tequoas City, reached an important 23:53 23 minutes, 53 seconds milestone, delivering more than 796 technical um modules to over 11,000 24:00 24 minutes unique employees, covering approximately 85% of our workforce. 24:07 24 minutes, 7 seconds To accelerate capability building in next generation skills critical to our growth, we rolled out focused learning 24:14 24 minutes, 14 seconds programs in areas such as Genai, softwaredefined vehicles and cyber security. I am pleased to share that 24:22 24 minutes, 22 seconds more than 50% of our engineering workforce is now AI ready, positioning us well to drive innovation and deliver 24:31 24 minutes, 31 seconds greater value as the technology landscape continues to evolve. In conclusion, as we enter the new fiscal 24:39 24 minutes, 39 seconds year, we do so with a stronger sense of momentum underpinned by a solid finish to the year and improving visibility 24:48 24 minutes, 48 seconds across our pipeline. We are seeing healthier customer engagement and a more constructive demand environment which 24:55 24 minutes, 55 seconds gives us greater confidence. As we look ahead, our focus remains firmly on disciplined execution, staying close to 25:04 25 minutes, 4 seconds our customers, driving timely decision making, and consistently converting opportunities into outcomes. At the same 25:13 25 minutes, 13 seconds time, we remain committed to maintaining strong operational rigor and financial discipline, which we believe will 25:21 25 minutes, 21 seconds continue to support sustainable growth and margin expansion over the medium term. With that, we can open it up for Q&A. 25:32 25 minutes, 32 seconds Thank you very much. We will now begin with the question and answer session. 25:37 25 minutes, 37 seconds Anyone who wishes to ask a question may press star and then one on their touchstone phone. 25:42 25 minutes, 42 seconds If you wish to remove yourself from the question queue, you may press star and then two. 25:48 25 minutes, 48 seconds Participants are requested to use handsets while asking a question. 25:53 25 minutes, 53 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 25:57 25 minutes, 57 seconds Again, to register for a question, please press star and one. 26:10 26 minutes, 10 seconds Our first question comes from the line of Chandra Mali Ma from Goldman Sachs. Please go ahead. 26:18 26 minutes, 18 seconds Hi, good evening and thank you for taking my questions. Uh my first question is just around the uh Qoq revenue growth. I think last quarter you 26:26 26 minutes, 26 seconds had guided for 10% um Q revenue growth. 26:31 26 minutes, 31 seconds Uh understanding was that half of that roughly might be organic and the other half might be inorganic. I think you mentioned in the book remarks that 26:38 26 minutes, 38 seconds you've done close to 8.8% Q organic revenue growth. So just want to understand uh the breakdown of of the upside uh how durable it is and and just 26:48 26 minutes, 48 seconds related to that if you could share any color on u the JLR anchor customers and and how recovery has been for you in 26:56 26 minutes, 56 seconds that account um since the cyber um issues and any buildback help that that you've been able to provide in addition to what you normally do. 27:06 27 minutes, 6 seconds Um well as as we um as we commented the uh the growth was relatively broadbased um against the 12% 27:15 27 minutes, 15 seconds 8% was uh was organic about 4% was uh was from Eztec that was in line with the expectations that we had when we 27:23 27 minutes, 23 seconds completed the Aztec transaction in uh in November and certainly was part of the guidance that we uh we provided in uh in 27:31 27 minutes, 31 seconds January of the 8% organic growth the uh the improvement was relatively 27:38 27 minutes, 38 seconds broad-based across sectors and certainly between our anchor and uh and automotive 27:44 27 minutes, 44 seconds customers and uh and we certainly saw uh JLR return to the normal uh run rate 27:53 27 minutes, 53 seconds that uh that we had uh before the uh the cyber attack. Um but um um we've uh 28:01 28 minutes, 1 second we've also secured uh new new deals across both our anchor accounts and our automotive non-tarter group uh accounts. 28:10 28 minutes, 10 seconds So we've seen growth um on the uh the run rate that um that we were maintaining before the cyber attack in 28:18 28 minutes, 18 seconds September and uh in October. So to add to the question about sustainability, we are very confident that what we 28:26 28 minutes, 26 seconds established in uh in Q4 represents a platform from which we can go on and deliver the doubledigit organic uh 28:34 28 minutes, 34 seconds growth that we previously committed to and that of course is uh is um will be complemented by the uh the contribution that will come in from a second. 28:47 28 minutes, 47 seconds Got it. That's helpful. Uh my second question is um just specifically on STEC. Um so I think with European 28:55 28 minutes, 55 seconds acquisitions um it takes some time to extract synergies out of out of these transactions. Um so I just want to 29:03 29 minutes, 3 seconds understand now that we are we've already sort of integrated the asset and it's been six to seven months um since since we started the whole process. I just 29:12 29 minutes, 12 seconds want to understand uh from what you've seen so far in the company um where you see both revenue and and cost synergies 29:21 29 minutes, 21 seconds um and what sort of time frame you you would expect to start uh potentially um extracting some of those synergies for the for for the combined business. 29:31 29 minutes, 31 seconds Well, the the postm integration plans with Aztec are are very much on uh on track. Uh both Utam and I were in uh 29:39 29 minutes, 39 seconds Wolsburg a couple of uh of weeks ago to assess um not only the cross-ell opportunity that we're looking to drive 29:47 29 minutes, 47 seconds at VW, but also to assess the uh the synergies that we've got within Vata Technologies customer base. I'm uh you 29:55 29 minutes, 55 seconds know I'm de delighted to say that um that the business plan that they've committed to is uh is uh is very much 30:02 30 minutes, 2 seconds being um supported um by our teams and uh and their teams and uh and business 30:11 30 minutes, 11 seconds is uh has already been won and uh and we are uh looking to uh to kind of build 30:17 30 minutes, 17 seconds upon that. So as of right now um despite the uh the announcements that are coming from the some of the European OEMs which 30:27 30 minutes, 27 seconds um which could in uh in other circumstances have um have somewhat of a 30:34 30 minutes, 34 seconds a headwind effect. We're uh we're seeing the business plan um being delivered in a way that's consistent with uh with the 30:42 30 minutes, 42 seconds plan that underpin the acquisition in uh in November. So we're very much on uh on track you know as far as the um the 30:50 30 minutes, 50 seconds synergies are are concerned you know again we uh we're looking at that in two ways our ability to be able to crossell 30:58 30 minutes, 58 seconds into uh into VW specifically and our ability to be able to extend our portfolio of services into our existing 31:05 31 minutes, 5 seconds customer base and uh and we have uh have demonstrated tangible pro progress and have got proof points against both of those topics. 31:17 31 minutes, 17 seconds Sorry, that's helpful. And just my last question is related to one of the points you just made. So over the past four to 31:24 31 minutes, 24 seconds five months, we've seen fairly large EV project specific writedowns at 31:30 31 minutes, 30 seconds Stellantis, at Ford, at GM um and in some ways even at Renault. Um but but 31:38 31 minutes, 38 seconds you did mention that you continue to deliver on some of your plans. you are seeing an injection in the business and I think over the past 18 months we've 31:46 31 minutes, 46 seconds come to appreciate that there are other projects beyond you know top tier EV spending that that drove a lot of the 31:53 31 minutes, 53 seconds industries upcycle a few years back if you could just share some color on you know what the sort of power trains you're seeing on some of these full full 32:02 32 minutes, 2 seconds vehicle wins uh and what are some of the other allied of non aspects of some of the automotive business that that's 32:09 32 minutes, 9 seconds giving you confidence on uh this being a turning point into FY 2017. 32:15 32 minutes, 15 seconds You know, our view in terms of the write-offs is that um that I don't think we should be too distracted by the cleaning up of balance sheets that are 32:24 32 minutes, 24 seconds going on in uh in Europe and uh and in North America. I think the um the the 32:30 32 minutes, 30 seconds the more telling uh trend is the fact that um that most of uh of 32:37 32 minutes, 37 seconds uh the non-Chinese OEMs um during the uh the period of uh of uncertainty and uh 32:45 32 minutes, 45 seconds and during the uh the period when uh many of those organizations were uh were grappling with the impact of uh of 32:53 32 minutes, 53 seconds tariffs, new products were not getting invested in and I think we've seen that kind of latent um demand to invest in 33:01 33 minutes, 1 second new products build and over the second half of uh of last fiscal year we're seeing some of those um decisions being 33:10 33 minutes, 10 seconds uh discharged. Now the portfolio um of propulsion systems is much more 33:17 33 minutes, 17 seconds balanced uh today than it was say two years ago when uh when everybody was all in on EVs. But the good news for TA 33:26 33 minutes, 26 seconds Technologies is that our customers are investing and we're relatively agnostic in terms of propulsion system. So whether it's a uh whether it's a 33:34 33 minutes, 34 seconds traditional ICE vehicle, whether it's a plug-in hybrid, whether it's a uh a um 33:41 33 minutes, 41 seconds range extender or or whether it's a full battery electric vehicle, you know, we're um we're engaging with our customers in uh in all of those areas. 33:52 33 minutes, 52 seconds And again, the good news is that uh that customers are are making decisions. And I'll I'll reinforce the importance of um 34:00 34 minutes of the um the full vehicle um uh program that we've won with the Japanese OEM. Now, 34:09 34 minutes, 9 seconds the Japanese OEMs are um they have very very high standards um and their expectations for all partners are uh are 34:19 34 minutes, 19 seconds very very high. So the fact that we've been entrusted to to take on the responsibility for a 34:26 34 minutes, 26 seconds full vehicle program that includes a top hat and uh and adjustments that we need to make to um to an existing platform. I 34:34 34 minutes, 34 seconds think it's proof positive that um that our value proposition is uh is resonating across the market and I think 34:42 34 minutes, 42 seconds this is one of the reasons that we have been so bullish not just about the last six months but about the uh the 34:50 34 minutes, 50 seconds prospects that this represents for the uh the coming uh fiscal year. You know we believe because of our value 34:58 34 minutes, 58 seconds proposition we have a seat at the table with our customers. we're influencing decision making and we're intersecting 35:05 35 minutes, 5 seconds with decisions before that um that cascades down to the uh to the extended supply chain. 35:14 35 minutes, 14 seconds Got it. That's very helpful. Thank you very much and all the best. Thank you. 35:19 35 minutes, 19 seconds Thank you. Before we take the next question, a reminder to everyone you may press star and one to ask a question. 35:27 35 minutes, 27 seconds Our next question comes from the line of Pavik Meta from JP Morgan. Please go ahead. 35:33 35 minutes, 33 seconds Hi, thank you. Uh so my first question is around you know just curious you know how the client conversations have evolved over the past couple of months 35:42 35 minutes, 42 seconds you know since the Middle East crisis the big end was there have been concerns around supply disruption for the automs 35:49 35 minutes, 49 seconds right uh so how are clients thinking in this environment are they still willing to continue the R&D spend or is there some pause uh they are thinking about 35:57 35 minutes, 57 seconds given the current situation yeah that's a great question um you know I think one of of the things that is not 36:05 36 minutes, 5 seconds being talked about um as far as the Middle East is concerned is the uh is the likely um impact that uh that what's 36:14 36 minutes, 14 seconds going on there is going to have on uh on uh commodity supply chains and uh and particularly the supply of uh of 36:22 36 minutes, 22 seconds aluminium and uh and and plastics and I think that is uh is likely uh to uh to 36:30 36 minutes, 30 seconds impact uh pricing for uh for our customers and it's likely to uh to impact um supply and their ability to be 36:38 36 minutes, 38 seconds able to uh to build. And so I I fully expect um discretionary spend amongst 36:45 36 minutes, 45 seconds our customers um to uh to tighten if uh if the Middle East crisis continues to 36:52 36 minutes, 52 seconds um to extend. Now having said that I don't expect that to uh to impact um 36:58 36 minutes, 58 seconds capex or indeed the uh the commitments that are being made to new products. As I said before, most of our customers 37:06 37 minutes, 6 seconds whilst they've been grappling with the impact of uh of tariffs have been uh have been uh pausing and uh and and 37:14 37 minutes, 14 seconds delaying decision- making and in some cases uh programs that um that demand and need to invest in what will define 37:22 37 minutes, 22 seconds their competitive position in the future is uh is really um um defining the uh 37:30 37 minutes, 30 seconds the type of uh of conversations that we're having with our customers. And again, we've uh we've modeled the impact of uh of the Middle East. We think we 37:39 37 minutes, 39 seconds factored it into our guidance and we're fully confident that the indirect impact of what's going on there will not um 37:48 37 minutes, 48 seconds will not undermine or uh or in any way um uh challenge the uh the double digit expectations that we have for this year. 37:59 37 minutes, 59 seconds Okay. Uh got it. The second question is uh on the BMW GB if I look at the share of profit from that GV was uh increasing 38:09 38 minutes, 9 seconds every quarter but this time we've seen a bit come down from seven cr and a half. 38:13 38 minutes, 13 seconds So any particular reason for that and how you think about it going forward. 38:17 38 minutes, 17 seconds That's right. Yeah sure. So uh our growth in the BMW JV continues to expand 38:25 38 minutes, 25 seconds as we have said. uh this was more of a one quarter phenomena whereas in quarter four there was certain true up of uh the 38:33 38 minutes, 33 seconds whole year expenses so it's an anomaly I would not guide to any degrowth that we see in the margins or the share of 38:40 38 minutes, 40 seconds profits on there so we continue to be bullish about the way our our contributions with BMW EV would go 38:48 38 minutes, 48 seconds and just to reinforce that the headcount and the revenues from uh from the the JV continues to uh to point in a very posit direction as far as growth is concerned. 38:58 38 minutes, 58 seconds So to uh to UTM's point, we fully expect um after the uh the one one the one 39:06 39 minutes, 6 seconds quarter impact of uh of the true up we expect to get back to the run rate that we were previously at. Yes. 39:13 39 minutes, 13 seconds Before that. 39:15 39 minutes, 15 seconds Okay. And just lastly uh on the margins, you know, can you explain the wedge to go from 16% a bit currently to 18% over 39:24 39 minutes, 24 seconds the next four quarters? Obviously operating average would be one of the big drivers but outside of that in terms of SG and in terms of gross margin anything you would expect. 39:34 39 minutes, 34 seconds So Warren let me take that up. Uh largely the operating margin improvement in the year will be driven first by the 39:42 39 minutes, 42 seconds robust growth that we expect in our services uh business. As already outlined uh we retained some of the 39:50 39 minutes, 50 seconds capacity and we have been investing in in growing the talent which will support towards the new business that we 39:58 39 minutes, 58 seconds anticipate to win and close in this year. Uh so therefore volumes are something that we continue to drive. uh 40:06 40 minutes, 6 seconds over and above that uh our standard levers around operate uh offshore the mix improvement the pyramid will 40:15 40 minutes, 15 seconds continue to support uh the efficiency that volumes will bring to us. So clearly uh while the routine operating 40:23 40 minutes, 23 seconds levers are in place but volume growth together with them will help us drive coming back to an exit of 18% by the 40:30 40 minutes, 30 seconds time we end the year. I think the other thing that um that I I would reinforce is the growing impact of uh of AI. Um we 40:38 40 minutes, 38 seconds are uh deploying AI across all of our delivery lobs and uh and across the enabling functions and have fairly 40:47 40 minutes, 47 seconds aggressive targets in terms of the unit cost of delivery in each of those areas and uh and as part of our margin walk 40:55 40 minutes, 55 seconds over the next 12 months that's very much factored in. Yes. Okay. Sorry. Thank you. 41:04 41 minutes, 4 seconds Thank you participants. You may press star and one to ask a question. 41:11 41 minutes, 11 seconds The next question comes from Karan from Philip Capital, India. Please go ahead. 41:17 41 minutes, 17 seconds Yeah, thanks for the opportunity and congrats for the set of numbers. Uh Warren, uh first question is to you. Uh you mentioned about uh four multi-year 41:26 41 minutes, 26 seconds deals which you have won and and two are also in the pipeline. So uh is there any geographic trend to it? Is it that North 41:35 41 minutes, 35 seconds American OEMs are spending more than uh European OEMs? You also mentioned about Japanese banking. So any particular 41:43 41 minutes, 43 seconds trend to highlight in North America versus EU OEM how they are thinking about the spend. Um and second question 41:51 41 minutes, 51 seconds is in terms of European OEM. um you know offshoring was a major part of their 41:58 41 minutes, 58 seconds their spend which was benefiting most of the Indian R&D vendors. So is that trend accelerating now? Yeah, that's the second question. 42:09 42 minutes, 9 seconds Okay. Um in terms of the um the the large deals that um that I celebrated 42:16 42 minutes, 16 seconds um I think the good news for us is that um again it's broad-based and uh and that is not just um 42:25 42 minutes, 25 seconds sectorally that is not not just from a client perspective it's also from a geography uh perspective you know one of 42:33 42 minutes, 33 seconds the PLM deals was um was in um the United States the other was in uh was in 42:39 42 minutes, 39 seconds Europe. Uh we've uh we've celebrated the um the four vehicle uh deal in uh in uh 42:47 42 minutes, 47 seconds Japan and uh and we are um developing traction across I think almost every 42:55 42 minutes, 55 seconds country that um that we have a presence at the moment. You know, one of the things that we shared with our board today was the uh the improvement that 43:02 43 minutes, 2 seconds we're uh we're almost seeing in every uh geography and uh and so, you know, for us that's very encouraging and uh and 43:10 43 minutes, 10 seconds it's something that we expect to continue. Um we've uh we've factored that into our budget for this year and certainly the uh the forecast that we 43:19 43 minutes, 19 seconds have for the first half of the year is uh is very much consistent um with that. 43:25 43 minutes, 25 seconds you know, as far as as European OEMs are concerned and uh and I'll specifically point to Germany, I think one of the 43:33 43 minutes, 33 seconds things that we are seeing as somewhat of a macro trend is that the German uh OEMs have traditionally surrounded themselves 43:41 43 minutes, 41 seconds with local engineering and uh and IT service providers and uh and have uh 43:48 43 minutes, 48 seconds have been somewhat reticent to embrace the uh the contribution from organizations like ourselves. 43:55 43 minutes, 55 seconds that have a significant presence here in uh in India and we're certainly seeing that uh change you know I think the uh 44:05 44 minutes, 5 seconds the announcement that we made 18 months ago with BMW is uh is very much a signal to everybody 44:13 44 minutes, 13 seconds else and so we are in advanced discussion with uh with a number of uh of OEMs and also tier ones in the German 44:22 44 minutes, 22 seconds market about um helping them diversify and balance their topology of delivery 44:30 44 minutes, 30 seconds to include a significant presence here in uh in India. So that macro trend is something that is tangible and uh and 44:39 44 minutes, 39 seconds something that we are uh building a uh a response to and uh and I think again given the proof points that we've got in 44:48 44 minutes, 48 seconds and around um engagements like the BMW um uh joint venture I think we have a very strong story to tell us as far as that is concerned. 45:00 45 minutes Okay. Um another question was on the aero business. You mentioned that aerrow business is now at 14 million analyze 45:07 45 minutes, 7 seconds run rate. Um uh could you also mention about the segments which you are contributing to this and uh what what's 45:15 45 minutes, 15 seconds the output for 27? Um and and a related question is that would air have alliance share in this population or is it broader than that? 45:25 45 minutes, 25 seconds Now I I think if we um if we look at where it's uh it's coming from you know Airbus is uh is certainly a uh a 45:34 45 minutes, 34 seconds flagship account uh for us as far as the uh aerospace business is concerned but we're also working with the propulsion 45:42 45 minutes, 42 seconds and engine manufacturers in uh in North America and we have a uh a strong and growing relationship here in uh in India 45:51 45 minutes, 51 seconds with Air India as it builds its uh its MRO um footprint out in uh in Bangalore and 45:59 45 minutes, 59 seconds as it looks to uh to increase the uh the uh number of aircraft that it's uh it's got um that is uh is flightw worthy and 46:08 46 minutes, 8 seconds so um the uh the aerospace business is uh is certainly uh being propelled by 46:16 46 minutes, 16 seconds our involvement in the EMVS cubed program at uh at Airbos. But we've uh we've leveraged that endorsement and the 46:25 46 minutes, 25 seconds tailwinds from the influence that the group is now starting to drive into aerospace to drive to to to grow our 46:33 46 minutes, 33 seconds business in a in a rel relatively balanced uh way. you know there are uh pockets of uh of opportunity that we uh 46:41 46 minutes, 41 seconds we expect to uh to further pursue in uh in the next couple of years but I'm very very pleased with the uh the consistent 46:50 46 minutes, 50 seconds uh growth and uh and the improvement in capability that we've been driving for the last four years and uh and in the same way that I'm bullish about the 46:59 46 minutes, 59 seconds entire organization I'm super excited about what we're doing in uh in aerospace 47:07 47 minutes, 7 seconds Okay. Uh just the last question on on the guidance of double digit uh growth organic growth for next year. Um so is 47:15 47 minutes, 15 seconds it uh it's going to be uh double digits across both non- anchor as well as non- anchor clients within automotive? 47:24 47 minutes, 24 seconds Uh yes it is uh it is um growth that we expect um to drive uh both inside of the 47:31 47 minutes, 31 seconds group and uh and outside of the group. I think, you know, one of the things that um that I think we shared with you um 47:38 47 minutes, 38 seconds about 12 months ago was the work that we've done to uh to really reinforce the commitment that we're making to our 47:46 47 minutes, 46 seconds strategic customers. And uh and our top um 20 customers now make up almost 88% 47:54 47 minutes, 54 seconds of our business. And what we're seeing through the investments that we've made and with the type of business that we 48:02 48 minutes, 2 seconds are securing is uh is real influence at the seauite level and uh and that manifests itself in uh in terms of some 48:10 48 minutes, 10 seconds of the large outsourcing projects that we've referred to particularly full vehicle but because of uh of the nature 48:17 48 minutes, 17 seconds of decision making around those things it affords us influence across the entire requirement of uh of 48:25 48 minutes, 25 seconds manufacturing customers that we are working with. And so, you know, our confidence in uh in double digit growth 48:32 48 minutes, 32 seconds is uh is really informed by the knowledge of uh of things like cycle plans, the knowledge of priorities and 48:41 48 minutes, 41 seconds uh and the influence that we are extending in terms of um the decision- making that's going on within those accounts. 48:55 48 minutes, 55 seconds Okay. Thanks. Thank you all. Thank you. Thank you. 49:01 49 minutes, 1 second A reminder to all the participants, if you wish to ask a question, you may press star and one. Now 49:13 49 minutes, 13 seconds the next question comes from the line of Punit Lola from Investments. Please go ahead. 49:21 49 minutes, 21 seconds Yeah. Hi Warren. Um it's Punit here and uh first of all uh great numbers. uh a 49:27 49 minutes, 27 seconds good hats off to all the team and uh my question is that you know in the past one one and a half years there's been 49:36 49 minutes, 36 seconds lot of uh you know turbulence in the journey like you know with the trade deal with the war situation 49:44 49 minutes, 44 seconds with the supply chain issues uh globally like there are a lot of global factors that have been affecting but uh moving 49:52 49 minutes, 52 seconds ahead when do you how much time do to see that like you know we could uh navigate 50:00 50 minutes through all this in a very smooth way and move ahead uh to a clear growth without any uh turbulence ahead or like 50:10 50 minutes, 10 seconds do you find uh little more time required or is it like you know things are pretty much gone and done? 50:18 50 minutes, 18 seconds Um it's a great question punit and um you know I I was in uh I was in Beijing at the auto show um 10 days ago and uh 50:28 50 minutes, 28 seconds and the innovation and uh and the speed at which the Chinese OEMs are operating 50:38 50 minutes, 38 seconds is um is remarkable and uh and and I I think that that is uh is driving a lot 50:47 50 minutes, 47 seconds of competitive concerns in uh in Europe and uh and in North America. And so, you know, clearly we will all need to be 50:56 50 minutes, 56 seconds sensitive and cognizant to uh to the geopolitical situation and uh and the impact that that has on uh on various 51:04 51 minutes, 4 seconds economies and consumer demand. But I'll remind everybody that our business is uh is a business that invests today for the 51:12 51 minutes, 12 seconds competitive position that will define the organizations that we work with in three and four years time. And I think the uh the fact that our customers have 51:21 51 minutes, 21 seconds not been investing in the recent past because of what's gone on uh particularly with uh with tariffs. I 51:29 51 minutes, 29 seconds think there's a catch up that the Europeans and the North American OEMs are going to have to undertake and uh and I think that is informing the type 51:38 51 minutes, 38 seconds of discussions that we are having. So, you know, we we will be very mindful of what is going on in uh in different 51:46 51 minutes, 46 seconds parts of the world. We'll certainly uh be sensitive to any regulation change. 51:52 51 minutes, 52 seconds But our view and I think increasingly this is the view of our customers is that um they have to invest in order to 52:01 52 minutes, 1 second be able to resist the competition that is absolutely going to come from the Chinese and uh and so you know we uh we are uh involved in the Chinese market. 52:12 52 minutes, 12 seconds We have an understanding of what's going on there. We're working with Chinese companies. We think we're ideally positioned to be able to support our uh 52:21 52 minutes, 21 seconds our customers in Europe and in North America and in Japan to uh to resist the 52:28 52 minutes, 28 seconds uh the competition that that clearly will come from uh from Japanese OEMs and their associated projects. 52:42 52 minutes, 42 seconds Thank you. Thank you for uh replying to that in such a good uh detail and it gives more clarity on the path ahead and 52:51 52 minutes, 51 seconds uh I think I'm done that that was my last question. Thank you. 52:54 52 minutes, 54 seconds Thanks for Thank you. The next question comes from the line of Samir Paradikar from Inara. 53:03 53 minutes, 3 seconds Please go ahead. 53:05 53 minutes, 5 seconds Yeah. Yeah. Thanks for the opportunity and congrats for the visit of numbers. 53:08 53 minutes, 8 seconds Uh can you uh tell us about the estate contribution for FI26 in terms of dollar? 53:21 53 minutes, 21 seconds So est contribution in the second uh in quarter 4 has been about 9 million and 53:30 53 minutes, 30 seconds in previous month it was 1/3. So roughly 11 to 12 million has been the contribution from estate. 53:37 53 minutes, 37 seconds Okay. And when you are referring to this the target for F5 is a double digit are you referring to dollar revenue or a 53:45 53 minutes, 45 seconds constant currency or INR which way constant constant currency constant currency. Okay. Thank you. 53:55 53 minutes, 55 seconds That's thank you. 53:59 53 minutes, 59 seconds The next question comes from line of Satish from FMA services. Please go ahead. 54:06 54 minutes, 6 seconds Yeah, good evening. 54:10 54 minutes, 10 seconds Congratulations on the setup a strong setup member. 54:14 54 minutes, 14 seconds My question is are there any plans about to start in the high sector group? 54:26 54 minutes, 26 seconds Um yeah, this is a this is a topic that we revisit um in all of our strategy discussions and uh and the consistent 54:36 54 minutes, 36 seconds response that we've had to um to the challenges that we presented to ourselves is that there's more than enough headroom in automotive, 54:44 54 minutes, 44 seconds industrial, heavy machinery and aerospace for us to satisfy our growth aspirations. And so in the short term we 54:51 54 minutes, 51 seconds are going to stay very focused laser sharp in terms of our focus upon those industry verticals. You know somewhat 54:59 54 minutes, 59 seconds counterintuitively the uh the more focused that we can be the more relevant that we can be to our 55:05 55 minutes, 5 seconds customers the uh the faster we think that we can grow and uh and uh and achieve the uh the type of influence 55:13 55 minutes, 13 seconds over the market that we uh we have the ambition to uh to achieve. So for us right now we're uh we're not looking into we're not looking to diversify into other industry verticals. 55:25 55 minutes, 25 seconds Okay. And my second question historically there was a vision to reach 1 billion revenue dur during the Ramadan 55:33 55 minutes, 33 seconds period. What is the realistic timeline now to achieve $1 billion in revenue? 55:43 55 minutes, 43 seconds Um, our northstar from a revenue perspective has been a billion dollars and uh and it continues to uh to be 55:50 55 minutes, 50 seconds that. You know, I I I think we uh we are looking to get back to uh doubledigit 55:58 55 minutes, 58 seconds revenue growth this year. If we can do that and we can sustain that next year, uh we can complement that with one or 56:07 56 minutes, 7 seconds two inorganic uh transactions. I think within the next two to three years we have the opportunity to get to where we 56:15 56 minutes, 15 seconds need to get to and uh and so you know that's the northstar for us and uh and that's what we're looking to achieve. 56:24 56 minutes, 24 seconds Okay. It means can we expect the sustainability of this performance move into the financial year 27 mean growth. 56:36 56 minutes, 36 seconds I think that is what uh Warren outlined. 56:38 56 minutes, 38 seconds We are looking at a double digit constant currency growth as we move into the next Japan initiative. 56:47 56 minutes, 47 seconds Okay, thank you. 56:50 56 minutes, 50 seconds Thank you. The next question comes from the line of Ankor Pant from IFM. Please go ahead. 56:57 56 minutes, 57 seconds Uh hi uh good evening. Um and thanks for taking my question. Congrats on a good set of numbers. I have just one 57:05 57 minutes, 5 seconds question. uh in terms of uh the double-digit growth that you're targeting, organic growth that you're targeting next year, how do you see it 57:13 57 minutes, 13 seconds spanning through the year? uh in terms of the cadence that we expect uh would it be more of a two-edged phenomena that 57:20 57 minutes, 20 seconds you would see a pick up in growth or how would how are you uh looking at the entire 57:28 57 minutes, 28 seconds I think we're looking at consistency across the um the courses but I I will say that we have had very strong uh 57:36 57 minutes, 36 seconds signings period um we expect as I signal before to close more deals in uh in the 57:44 57 minutes, 44 seconds next uh four to six weeks and so I think it's likely that the second half of the year will grow faster than the first 57:52 57 minutes, 52 seconds half of the year but we expect consistency across all four quarters and so um the uh the confidence that we have 58:00 58 minutes is uh is very much based on that and and and just one follow up on that uh what kind of uh demand environment 58:09 58 minutes, 9 seconds are you baking in for that uh growth are you also expecting some improvement uh or recovery in the demand environment or a status quo in terms of that. 58:20 58 minutes, 20 seconds Now the um the the um the guidance that we've provided is uh is very much uh 58:26 58 minutes, 26 seconds driven by the order book that we have and uh and the probability adjusted pipeline that uh that includes deals 58:34 58 minutes, 34 seconds that we are very much in the process of uh of trying to close. So it's not um it's not factoring in any improvement to 58:42 58 minutes, 42 seconds the developed environment that um that will be required to uh to deliver against those numbers. 58:50 58 minutes, 50 seconds Sure. Thank you uh and thank you. 58:54 58 minutes, 54 seconds Thank you ladies and gentlemen. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. 59:04 59 minutes, 4 seconds Thank you everyone for joining us on today's call. We hope we've addressed most of your questions. If you have any additional questions, please feel free 59:12 59 minutes, 12 seconds to reach out through the investor relations team and we'll be happy to assist you. Wishing all of you all the best and goodbye here from all of us. 59:20 59 minutes, 20 seconds Thank you. 59:23 59 minutes, 23 seconds Thank you on behalf of Data Technologies Limited. That concludes this conference. 59:29 59 minutes, 29 seconds Thank you everyone for joining us and you may now disconnect your lines.