Unicommerce eSolutions Ltd — Q3 FY26

Unicommerce eSolutions Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=RnLcux7UUCg Published: 2 months ago

0:00 Ladies and gentlemen, good day and welcome to Uni-Commerce Esolution Limited Q3 and 9 months FI26 earnings conference call. This conference call 0:10 10 seconds may contain forward-looking statements about the company which are based on beliefs, opinions and expectations of the company as on date of this call. 0:18 18 seconds These statements are not the guarantee of future performance and involves risk and assentities that are difficult to 0:25 25 seconds predict. As a reminder, all participants line will be a listenon mode and there will be an opportunity for you to ask question after the presentation 0:34 34 seconds concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. Please 0:43 43 seconds note that this conference is being recorded. I now hand over the conference to Mr. Capil Makija, managing director 0:51 51 seconds and CEO of Uni-Commerce Esolution Limited. Thank you and over to you sir. 0:58 58 seconds Thanks PI. Good morning everyone and thank you for joining us for the quarter 3 and 9 months FI26 earnings call. I am 1:08 1 minute, 8 seconds joined today by Anurag Mittal our chief financial officer along with our investor relations advisors strategic growth advisors. 1:20 1 minute, 20 seconds We are pleased to announce another quarter of strong growth in revenues and profits in Q3 FI26. 1:28 1 minute, 28 seconds Our revenue stood at INR 56.4 Kores growing 72.2% 1:36 1 minute, 36 seconds yearonear and translating into an annualized revenue run rate exceeding 1:42 1 minute, 42 seconds INR 225 crores. This growth was driven by continued enterprise additions, 1:50 1 minute, 50 seconds structured revenue expansion initiatives within uniare and growing scale of ship pay. 1:58 1 minute, 58 seconds Adjusted aida for the quarter stood at INR 13.4 crores growing 51% yearon year. 2:07 2 minutes, 7 seconds This corresponds to an annualized adjusted EITA run rate of more than INR 53 K marking another milestone for the company. 2:18 2 minutes, 18 seconds This improvement reflects operating leverage inherent in our SAS model as revenue scale combined with disciplined cost management. 2:30 2 minutes, 30 seconds Before discussing platform specific updates, I'd like to share our progress on integrating AI in our business. Since 2:40 2 minutes, 40 seconds the last few quarters, our AI journey has progressed in phases. 2:46 2 minutes, 46 seconds We began by integrating AI into our internal day-to-day operations, then 2:52 2 minutes, 52 seconds introduced AI enabled features across platforms and are now becoming AI first 3:00 3 minutes where core platform functionalities are delivered through AI. 3:05 3 minutes, 5 seconds Given that our platforms function as the system of record for our clients e-commerce operations, AI in general is 3:15 3 minutes, 15 seconds a boon for solution like ours. It allows operational data to become actionable, 3:21 3 minutes, 21 seconds strengthens decision making and further deepens our integration within our client technology stack and daily operation. 3:32 3 minutes, 32 seconds We have launched three core AI capabilities in the last two quarters. 3:38 3 minutes, 38 seconds Catalyst AI voice agent for convertway in quarter 3. Uniot AI assistant for 3:45 3 minutes, 45 seconds uniare also in quarter 3 and ship sense AI career allocation in quarter 2. 3:54 3 minutes, 54 seconds Catalyst AI voice agent enables automated humanlike outbound calls in multiple languages. For example, it can 4:03 4 minutes, 3 seconds proactively engage customers who abandon transactions at checkout by calling them and resolving queries in real time, 4:12 4 minutes, 12 seconds helping close sales without any human intervention. 4:17 4 minutes, 17 seconds This expands conversational commerce in a scalable manner. We will play a brief audio demonstration at the end of our remarks. 4:28 4 minutes, 28 seconds Uniot AI assistant is a gen AI solution. 4:33 4 minutes, 33 seconds It acts as an e-commerce operations co-pilot that allows Uniare clients to 4:39 4 minutes, 39 seconds execute warehouse actions through simple multilingual text prompts. Tasks such as 4:46 4 minutes, 46 seconds order processing, shipping label generation, inventory checks, and operational queries can now be completed 4:54 4 minutes, 54 seconds through conversational inputs. This increases ease of use of our platform, reduces training time, and simplifies daily workflows for our users. 5:07 5 minutes, 7 seconds ShipSense AI enables intelligent career allocation within Shipway. It optimizes 5:14 5 minutes, 14 seconds corer selection by balancing cost delivery timelines and the probability 5:20 5 minutes, 20 seconds of pre-ely returns due to delays. This improves both logistics efficiency and end customer experience. 5:31 5 minutes, 31 seconds These initiatives strengthen our product differentiation while expanding monetization avenues across our platforms. 5:41 5 minutes, 41 seconds Now coming to key updates for our platforms. 5:44 5 minutes, 44 seconds Uniare resumed growth momentum in quarter 3 FI26 delivering 8.1% 5:52 5 minutes, 52 seconds year-on-year revenue growth on a standalone basis. While consumer demand showed partial improvement during the 5:59 5 minutes, 59 seconds quarter, the primary drivers for this growth were internal initiatives executed over the past few quarters. 6:08 6 minutes, 8 seconds These include continued enterprise acquisitions and structured revenue expansion programs through launch of new 6:16 6 minutes, 16 seconds products positioning the business for stronger doubledigit growth beginning quarter 4 FI26 onwards. 6:26 6 minutes, 26 seconds We added more than 110 enterprise clients across traditional and digital first brands during the quarter 6:34 6 minutes, 34 seconds including the likes of action tesa leer footwear interior by godidge sheen 6:40 6 minutes, 40 seconds marketplace and underneath revenue expansion initiatives continue to gain traction supported by rising 6:50 6 minutes, 50 seconds adoption of our newer offerings quickcommerce and B2B modules are now used by 35 to 40% of our enterprise 6:59 6 minutes, 59 seconds clients and uni record adoption is 4 to 5% among enterprise clients within the first 6 months of the launch of the 7:08 7 minutes, 8 seconds product. Uni Uni capture launched last quarter has seen strong interest driven 7:15 7 minutes, 15 seconds by evolving marketplace requirements for mandatory video-based proof in return claims. Some marketplaces have already 7:23 7 minutes, 23 seconds made this a mandate while others are considering doing the same. 7:29 7 minutes, 29 seconds We would also like to share an important update about our top 10 clients. During the quarter, one of our top 10 clients 7:37 7 minutes, 37 seconds made a strategic decision to change its business model and discontinue its multi- channelannel operations. 7:45 7 minutes, 45 seconds As a result, we saw a revenue impact from this account. While such transitions are a part of the dynamic 7:53 7 minutes, 53 seconds e-commerce ecosystem, our endeavor has been to continue to diversify our revenue by adding new enterprise 8:00 8 minutes clients. As a result of which our con our concentration of revenue from top 10 8:06 8 minutes, 6 seconds clients is nearly 12% in Q3 FI26 and has been continuously coming down from 19% in FI25 and nearly 27% in FI24. 8:19 8 minutes, 19 seconds The impact of this change has been fully offset through growth from other existing clients as well as new 8:27 8 minutes, 27 seconds enterprise additions. The 8.1% year-on-year growth reported for the quarter is after absorbing this revenue 8:35 8 minutes, 35 seconds loss. Excluding this impact, growth would have been higher. We expect the growth momentum to continue in the 8:42 8 minutes, 42 seconds coming quarters and should result in doubledigit growth in revenues from quarter 4 FI26 onwards. 8:51 8 minutes, 51 seconds Additionally, over the past few quarters, we have received several queries regarding Uniare transaction 8:59 8 minutes, 59 seconds rate which is calculated as revenue divided by transactions processed. 9:05 9 minutes, 5 seconds As our product mix has diversified with increasing contributions from B2B, quick commerce and value added modules, the 9:14 9 minutes, 14 seconds aggregate aggregated transaction rate metric has become less representative of underlying performance compared to 9:23 9 minutes, 23 seconds earlier periods when the mix was more homogeneous. 9:27 9 minutes, 27 seconds Accordingly, we do not believe that this is a high quality metric to track our performance. Instead, we internally 9:35 9 minutes, 35 seconds evaluate uni business using three primary levers. Net revenue retention, which we disclose annually to track 9:43 9 minutes, 43 seconds expansion within the existing client base. Enterprise client additions, which we disclose quarterly to measure 9:51 9 minutes, 51 seconds incremental growth through new customer acquisitions. and our profitability metric which we disclose quarterly to 10:00 10 minutes track our efficiency and operating leverage. 10:04 10 minutes, 4 seconds With that context, we will discontinue reporting transaction related metrics going forward. This approach is intended 10:13 10 minutes, 13 seconds to ensure that the data shared is meaningful, comparable and aligned with how we internally evaluate the business. 10:22 10 minutes, 22 seconds Similarly, blended gross margin at the consolidated level is influenced by revenue amalgamation across businesses 10:31 10 minutes, 31 seconds post shipway acquisition and does not fully reflect our operating profile. We will continue to assess the relevance of 10:39 10 minutes, 39 seconds this disclosure in light of our evolving business mix and determine the appro appropriate reporting approach going forward. 10:48 10 minutes, 48 seconds Now coming to shipwe. Shipe continues to strengthen our SAS portfolio and scale steadily postacquisition. 10:58 10 minutes, 58 seconds In quarter 3 FI26, Shipe Technology Private Limited, which includes both Shipe and Convert Way, achieved an 11:06 11 minutes, 6 seconds annualized revenue run rate of approximately INR 100 Kores, compared to 11:12 11 minutes, 12 seconds INR 71 Kores in quarter 1, FI25, its first full quarter post acquisition. 11:20 11 minutes, 20 seconds We expect shipwe to also grow at a double-digit rate on a year-on-year basis, but at a pace faster than uniare 11:29 11 minutes, 29 seconds given the size of the addressable market and its low penetration relative to the market. 11:36 11 minutes, 36 seconds Shipway's SAS logistics automation platform delivers value to clients beyond aggregation through optimization, 11:45 11 minutes, 45 seconds automation, and analytics across the logistics life cycle for our brand and its customers. 11:52 11 minutes, 52 seconds During the quarter, we launched a new mobile application to support operational workflows on the move and 11:59 11 minutes, 59 seconds shipway cargo for bulky B2B shipments, warehouse transfers, and delivery to 12:06 12 minutes, 6 seconds quick commerce motherhub facilities from brand warehouses, enabling incremental revenue opportunities. 12:15 12 minutes, 15 seconds for convert way. We have already discussed the key update for the AI voice this quarter. 12:22 12 minutes, 22 seconds Given the large and underpenetrated addressible market and shipway and convertways strong structural foundation 12:31 12 minutes, 31 seconds of running profitably for the last few quarters, we are inclined towards making calibrated investments going forward. 12:40 12 minutes, 40 seconds Given our healthy cash generation and balance sheet strength, we plan to invest in AI product and technology and 12:50 12 minutes, 50 seconds to expand sales and marketing capacity along with brand building in these businesses. While this may result in 12:58 12 minutes, 58 seconds slightly below break even adjusted EITA in the short term in Shipe Technologies Private Limited, we believe these will 13:06 13 minutes, 6 seconds be high ROI investments supporting faster platform scaling and long-term value creation. 13:15 13 minutes, 15 seconds On the leadership front, we are pleased to welcome Gorov Junja as chief revenue officer for uniccommerce to further 13:23 13 minutes, 23 seconds strengthen our business development, marketing and customer success functions for driving growth. Gorov brings an 13:31 13 minutes, 31 seconds operator-led approach with deep experience in B2B SAS technology and retail businesses. Prior to joining 13:39 13 minutes, 39 seconds Unicommerce, he served as chief revenue officer at capture, head of dig head of digitization at Google India and founded 13:49 13 minutes, 49 seconds and scaled the star quick business under the Tata group. He also has experience with the Reliance Retail and investment 13:57 13 minutes, 57 seconds banking at Lehman Brothers. Gorav is an almist of the Indian Institute of Management Lucknau. He further 14:04 14 minutes, 4 seconds strengthens the leadership depth at unicommerce and adds to our management bandwidth for gotom market execution. 14:11 14 minutes, 11 seconds [clears throat] 14:13 14 minutes, 13 seconds Looking ahead, we expect to continue benefiting from structural tailwinds in India's e-commerce market which remains 14:21 14 minutes, 21 seconds significantly underpenetrated across uniare ship and convertway. We address a total market opportunity of 14:31 14 minutes, 31 seconds over1 billion US dollars with particularly strong opportunities in career aggregation through ship. 14:38 14 minutes, 38 seconds Over the coming quarters, management will remain focused on scaling uni revenues as growth momentum increases, 14:47 14 minutes, 47 seconds accelerating shipbased penetration in career aggregation and convertbased growth in marketing automation along 14:55 14 minutes, 55 seconds with disciplined investment in AI capabilities and improving our platforms that expand use cases and drive 15:03 15 minutes, 3 seconds cross-ell improving profitability and cash generation. 15:09 15 minutes, 9 seconds provides flexibility to reinvest in organic growth while selectively evaluating inorganic opportunities in 15:16 15 minutes, 16 seconds adjacent areas guided by strategic fit, customer value and financial sustainability. 15:24 15 minutes, 24 seconds As we enter the next phase of growth, our focus remains on consistent execution, prudent capital allocation 15:32 15 minutes, 32 seconds and strengthening our platform. I will now hand over to Anurra to walk you through the financials in detail. 15:43 15 minutes, 43 seconds Thank you Cafe. Good morning everyone. 15:47 15 minutes, 47 seconds We delivered a strong performance in quarter 3 and the 9 months of FI26 15:54 15 minutes, 54 seconds with robust topline momentum and continued improvement in operating profitability. 16:03 16 minutes, 3 seconds For quarter 3 FI26, consolidated revenue stood at 56.4 cringing yearon-year growth of 72.2%. 16:17 16 minutes, 17 seconds The this performance was supported by growth across both uniare and shipwreck. 16:26 16 minutes, 26 seconds Adjusted AITA which reflects our operational profitability grew by 51% 16:33 16 minutes, 33 seconds year-over-year to 13.4 cr. 16:40 16 minutes, 40 seconds The growth in adjusted AITA was driven by disciplined cost management, 16:46 16 minutes, 46 seconds AIEL operational efficiencies, strong operating leverage from uniarees and shiftways continued pad positive performance. 16:58 16 minutes, 58 seconds Profit after tax for the quarter was 7.4 4 cr compared to 6.3 cr in quarter 3 17:07 17 minutes, 7 seconds fi25 excluding the non-cash amotization 17:12 17 minutes, 12 seconds expense related to the ship acquisition would have been approximately 8.2 cr 17:21 17 minutes, 21 seconds representing yearon-year growth of 24.9%. 17:27 17 minutes, 27 seconds Earning per share also increased 12.5% 17:32 17 minutes, 32 seconds yearonear to 0.63 63 from 0.56 17:39 17 minutes, 39 seconds in quarter 3 FI25 on a 9th monthly basis the company 17:47 17 minutes, 47 seconds delivered strong financial performance our consolidated revenue for 9 months FI26 17:56 17 minutes, 56 seconds grew 70.6% 6% yearover-year to 152.7 K 18:04 18 minutes, 4 seconds compared to 89.5 K in 9 months FI25 18:11 18 minutes, 11 seconds adjusted AITA increased 75.8% yearonear to 34.3 cr surpassing FI25 18:22 18 minutes, 22 seconds fullyear adjusted debita of 28.4 4 cr in just 9 months reflecting disciplined cost management and scale efficiencies. 18:36 18 minutes, 36 seconds Profit after tax for 9 months per was 17.1 K compared to 14.3 cr in 9 months 18:44 18 minutes, 44 seconds FI25 excluding non-cash amotization related to the ship pay acquisition PA would 18:53 18 minutes, 53 seconds have been approximately 21.1 K representing yearon-year growth of 45.2%. 19:04 19 minutes, 4 seconds Earnings per share also increased 18.1% yearonear to 1.50 in 9 months FI26 19:15 19 minutes, 15 seconds from 1.27 in 9 months FI25. 19:22 19 minutes, 22 seconds Shipway has continued to deliver strong performance achieving an annualized revenue run rate of approximately 100 K 19:32 19 minutes, 32 seconds in quarter 3 FI26 up from 71 cr in quarter 4 FI25 its 19:40 19 minutes, 40 seconds first full quarter post acquisition as couple mentioned earlier we plan to 19:46 19 minutes, 46 seconds increase investments in AI products and technology capabilities and sales and marketing capacity along with brand building to drive further growth. 19:59 19 minutes, 59 seconds We expect these investments to help increase the platform scale and broaden our market footprint over time. 20:10 20 minutes, 10 seconds At the consolidated level, annualized revenue run rate now exceed 225 cr with 20:18 20 minutes, 18 seconds adjusted AITA run rate above 53 cr. 20:23 20 minutes, 23 seconds A large part of our adjusted AITA converts into operating cash flows for us due to the asset light nature of our 20:30 20 minutes, 30 seconds SAS model and enables us to reinvest this into growth. 20:37 20 minutes, 37 seconds Looking ahead, we remain focused on maintaining cost discipline while delivering sustainable and a profitable 20:46 20 minutes, 46 seconds growth. As mentioned earlier, we expect Juni to deliver doubledigit growth from 20:54 20 minutes, 54 seconds quarter 4 FI26 onwards as revenue expansion initiatives gain traction. 21:01 21 minutes, 1 second While shipwe given its large addressable market and early stage of penetration has the potential to scale at a relatively faster pace. 21:16 21 minutes, 16 seconds We will now play a short audio clip to demonstrate convert AI voice bot capability. 21:25 21 minutes, 25 seconds For context, in this recording, Tanvi is the customer and the other voice you will hear is our 21:34 21 minutes, 34 seconds AI system engaging with her in real time. 21:44 21 minutes, 44 seconds [music] 21:50 21 minutes, 50 seconds [music] 21:53 21 minutes, 53 seconds Hello. Am I talking to San Die? Yes. 21:55 21 minutes, 55 seconds Hi Sanvi. This is Puja from Hair Restore. I noticed that you added anti-dandruff shampoo in the cart but couldn't complete the payment. Just 22:03 22 minutes, 3 seconds wanted to check if you'd like any help with the same. I actually couldn't figure out how do I use the product. Oh, I see. Let me help you with that. Here's 22:11 22 minutes, 11 seconds how you can use the anti-dandruff shampoo. Spray from about 8 to 10 in away focusing on the root. After that, 22:18 22 minutes, 18 seconds spray generously on the crown area for volume and bump. Next, massage the product into your roots for about 30 22:25 22 minutes, 25 seconds seconds and then use a brush to get rid of any leftover white particles. 22:30 22 minutes, 30 seconds Finally, style your hair as you like and you're all set. 22:54 22 minutes, 54 seconds price. Yes, you can send me the checkout link. 22:59 22 minutes, 59 seconds Great. So, I'm sending the checkout link to your number right now. You'll be able to complete everything in just a few taps from there. Thanks for talking to 23:06 23 minutes, 6 seconds me. [music] As you heard, the interaction is 23:13 23 minutes, 13 seconds designed to feel natural, contextual, and outcome oriented. 23:19 23 minutes, 19 seconds Since launch, the voice has scaled quickly to approximately one lakh cost per month, reflecting encouraging client 23:28 23 minutes, 28 seconds interest. We hope you found the demonstration insightful. 23:34 23 minutes, 34 seconds With that, we will open the floor for question. Thank you. 23:40 23 minutes, 40 seconds Thank you very much sir. We will now begin the question and answer session. 23:44 23 minutes, 44 seconds Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you 23:52 23 minutes, 52 seconds may press star and two. Participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 24:21 24 minutes, 21 seconds The first question is from the line of Anaya from Think Wise Wealth Managers. Please proceed. 24:28 24 minutes, 28 seconds Uh good morning sir. Uh so my first question is uh uh on account of pricing actually I wanted to check if like maybe 24:37 24 minutes, 37 seconds this is the bottoming out of like a low pricing environment and also if you're able to share what percentage of the 24:44 24 minutes, 44 seconds current clients are uh newly added clients and like if they are on the minimum guarantee plan. Yeah that's my first question. 24:57 24 minutes, 57 seconds uh Anun I couldn't hear the questions completely. I'll just rephrase on what I understood. One, you want to understand the trajectory of rate per transaction. 25:08 25 minutes, 8 seconds Second, you mentioned that uh how many of them are newly added clients. Yes. Is that correct? Yes. 25:16 25 minutes, 16 seconds Okay. Uh so as we uh as we mentioned during our speech that the transaction rate uh is a function of is calculated 25:25 25 minutes, 25 seconds as revenue per transaction and our transaction mix has become a lot more heterogeneous with addition of capabilities of B2B quick commerce and the new modules that we are launching. 25:35 25 minutes, 35 seconds So it does not accurately represent the progress of the business. uh because our rate per transaction is a function of 25:43 25 minutes, 43 seconds the product mix as well as uh the client mix. Um so we don't feel that it's it's the most meaning meaningful way to 25:51 25 minutes, 51 seconds assess the business. Having said that uh the uh uh the the rate per transaction 25:58 25 minutes, 58 seconds has been consistent since last quarter and uh while the number appears to be stable it does not truly reflect the true drivers of growth or expansion. 26:08 26 minutes, 8 seconds In terms of your question on the new acquisition, uh we have uh we've been talking about our new client acquisition 26:17 26 minutes, 17 seconds uh since uh post uh post listing. So when we listed the first quarter, we added about 85 odd enterprise clients in 26:25 26 minutes, 25 seconds a quarter. Today we are on a trajectory trajectory of anywhere between 110 to 120 clients per quarter. So we've seen a 26:32 26 minutes, 32 seconds consistent improvement in the new client uh being added. uh and this uh so from that you can you can get a sense of what 26:41 26 minutes, 41 seconds the share of new clients as a uh percentage of uh the overall client base. Also I want to uh clarify to the 26:50 26 minutes, 50 seconds entire uh uh all the listeners today that all the enterprise clients that we onboard are on an minimum guarantee 26:57 26 minutes, 57 seconds plan. Every enterprise client give us a subscription fees in which you bundle certain number of transactions in this cost and once they exhaust this quot of 27:05 27 minutes, 5 seconds allotted transactions they pay us a usage based fees. Hope that clarifies. 27:11 27 minutes, 11 seconds Sure. I just had one more bookkeeping question. Uh sir in Q2 uh in account 27:17 27 minutes, 17 seconds mentioned that about 7.81 81 cr of uh amotization for ships way was done for 27:24 27 minutes, 24 seconds the half year and I can see for Q3 uh notes also for the 9 months a similar amount is done so am I to understand 27:31 27 minutes, 31 seconds that for Q3 nothing has been amotized uh could you just confirm that yeah 27:38 27 minutes, 38 seconds uh Ana the amotization has been done uh in fact uh the amotization has been done this quarter as well for the shipway 27:47 27 minutes, 47 seconds technology what we acquired at a time of acquisition. Uh it is uh similar and consist to the previous quarters. Uh in 27:54 27 minutes, 54 seconds fact the the the number is almost same to what we reported in quarter 2 of FI26. 28:00 28 minutes So can you just confirm how much has been amatized in Q3 and how much was done in Q2? 28:06 28 minutes, 6 seconds So quarter 2 it was 13 million and quarter 3 it is 12.8 million almost similar. 28:14 28 minutes, 14 seconds Uh so for the full year 13 crores is what we have to amortize right so shouldn't it be at the run rate of about more than 3 crores per quarter. 28:24 28 minutes, 24 seconds So the overall capitalization we did around 39 crores at a time of acquisition and it has to be amortized 28:31 28 minutes, 31 seconds over a period of 8 years. So near about 12 or 13 million of amortization spend will come every quarter. 28:41 28 minutes, 41 seconds It's over 8 years sir just to confirm. Yeah that's correct. Yeah. Okay. 28:47 28 minutes, 47 seconds Just to give you a context we Yeah. Just to give you a context while we integrated our internally generated 28:53 28 minutes, 53 seconds technology which is uh more advanced technology based on AI with the ship tech acquired technology the estimated 29:02 29 minutes, 2 seconds useful life of the asset based on the technical uh assessments have increased from 3 years to 8 years. So that is the reason the dep the estimated useful life 29:11 29 minutes, 11 seconds of the asset is now 8 years and the deposition expense for quarter would be around 13 million every quarter. 29:19 29 minutes, 19 seconds Okay sir that clears it up. Thank you. 29:24 29 minutes, 24 seconds Thank you ladies and gentlemen to ask a question please press star and one now. I repeat 29:32 29 minutes, 32 seconds participants who wish to ask question may please press star and one at this time. 29:38 29 minutes, 38 seconds The next question is from the line of B Gupta from PCian Capital. Please proceed. Hi sir, thank you for the opportunity. 29:46 29 minutes, 46 seconds Am I audible? Yeah, you're audible. 29:51 29 minutes, 51 seconds Yeah. Hello sir. Uh so sir, I just wanted to get some understanding on the pricing power of the company. So as you mentioned uh you're saying that because 29:58 29 minutes, 58 seconds of a change in product mix uh the metric that we calculate using the revenue for transaction process. you're saying that's not entirely reflective or 30:07 30 minutes, 7 seconds comparable to last year. Just to get a sense of understanding on the pricing power of the company. How is it that we now get a sense of you know how is it 30:15 30 minutes, 15 seconds that the customers are really uh giving you uh revenue. So in my understanding the revenue model of the company has always been that and as you just 30:23 30 minutes, 23 seconds mentioned there's a minimum slab of transactions that companies process and after that they have to pay an incremental amount of revenue on a step 30:29 30 minutes, 29 seconds up basis. So then how do we uh get an get a sense of how the pricing is changing for these customers? 30:40 30 minutes, 40 seconds Sure. Uh one so first of all I want to clarify that we continue to operate at a premium compared to other players. Uh we continue to build strong enhancements in 30:48 30 minutes, 48 seconds the product and as you heard in our speech earlier that we are leveraging AI to continue to justify this premium. We have been not only launching 30:56 30 minutes, 56 seconds enhancements to the product. We are also launching core functionalities using AI. 31:01 31 minutes, 1 second Uh being AI first has ensured that we can continue to add meaningful value to the ecosystem because of which we can 31:09 31 minutes, 9 seconds justify the premium. The various products uh continue to have a very different uh pricing profile. uh and 31:16 31 minutes, 16 seconds because of that an aggregate rate per transaction does not fully justify uh meaningfully the nature of our business and the growth trajectory of our business. 31:27 31 minutes, 27 seconds So just to clarify these new uh these new uh facilities that we are adding these new products that we're selling to 31:34 31 minutes, 34 seconds the clients we're not selling them on a revenue per transaction basis. 31:40 31 minutes, 40 seconds Yeah. So pricing for all our products is a function of the transaction. The transactions can be different uh for 31:47 31 minutes, 47 seconds different products. Uh so for uh let's say uni reo it is in terms of the number of items that are being reconciled. For 31:55 31 minutes, 55 seconds uni capture it is the number of videos or images being processed. In case of uniare it is the number of items going out of the warehouse. So for different 32:03 32 minutes, 3 seconds products the underlying metric is the transaction. The definition of the transaction can vary according to the product. 32:10 32 minutes, 10 seconds No sir fine. Uh thank you for the answer. Just one more question from May. 32:14 32 minutes, 14 seconds So I see that the revenue share of the top 10 clients had just decreased from about 20.1% since last year to 12.1% 32:21 32 minutes, 21 seconds now. Uh and our revenues have grown by about 8%. So is it that we're losing some revenue share from the existing 32:29 32 minutes, 29 seconds customers to our competition or is it because of large client that we have lost this quarter and that's what's causing the dent. 32:38 32 minutes, 38 seconds Yeah. So uh see uh the given the nature of our product 100% of drop ship e-commerce volumes for any brand flow 32:46 32 minutes, 46 seconds through us uh it does a brand never uses multiple solution for managing their e-commerce operations. So we will that will never be the case that we lose part 32:54 32 minutes, 54 seconds of the volume to some other player. uh the uh the the relative share of top 10 customers has been consistently 33:02 33 minutes, 2 seconds declining because we continue to add enterprise clients on a consistent basis and as the overall enterprise base 33:10 33 minutes, 10 seconds increases and we continue to see growth in the business the relative share of top 10 customers continues to decline and this has been a consistent trend 33:18 33 minutes, 18 seconds over the last many years where in FI24 the concentration was 27% and it has now come down to nearly 12% in quarter 3 33:25 33 minutes, 25 seconds FI26 It is a concerted effort to ensure that our revenue continues to be diversified and it has a fairly healthy mix of multiple enterprise clients. 33:38 33 minutes, 38 seconds Got it. Uh just one last followup from my end. So could you share the uh if you have a sense of what is the uh total revenue percentage share that the 33:47 33 minutes, 47 seconds company manages for its clients? Uh so my question really is I want to get a sense of what is the D2C business uh of 33:54 33 minutes, 54 seconds all of your clients on average that you are managing. So is it like 20% of the revenue 30% of the revenue any sense of that number if you can just draw it? 34:03 34 minutes, 3 seconds Uh so we'll not be able to share channel specific information but as I mentioned 100% of a client's e-commerce drop ship business gets managed through uniare 34:12 34 minutes, 12 seconds um so it's not a part of the business that we are managing. 34:18 34 minutes, 18 seconds Got it. Fine. That's all for mine. Thank you. Thank you. 34:24 34 minutes, 24 seconds Thank you ladies and gentlemen. Anyone who wishes to ask a question may press star and one on their touchstone telephone. 34:33 34 minutes, 33 seconds The next question is from the line of Shiva from I thought PMS. Please proceed. 34:41 34 minutes, 41 seconds Hi sir, thank you for the opportunity. 34:44 34 minutes, 44 seconds Uh so you had mentioned that we had acquired 110 roughly clients this quarter. So if I compare our enterprise 34:51 34 minutes, 51 seconds client count with previous quarter there seems to be a net addition of only 16 clients, right? So does it mean we are 34:58 34 minutes, 58 seconds having a higher churn and if so could you explain why we are facing this high churn? 35:04 35 minutes, 4 seconds Sure. So e-commerce is a dynamic industry uh SA. So we continue to see churn in the longtail segment primarily 35:12 35 minutes, 12 seconds among clients with low volumes or those winding down operations due to tough market conditions. Uh uh so uh while you 35:21 35 minutes, 21 seconds may see that the net additions are lower than the gross additions that we're doing but bulk of this churn happens through longtail customers. That is why 35:30 35 minutes, 30 seconds in spite of uh uh these customers churning and more majority of them uh like the the three key reasons of churn 35:38 35 minutes, 38 seconds for our platform continue to be a customer shutting down, customer deciding to move away from e-commerce or customer deciding to move from drop ship 35:46 35 minutes, 46 seconds to an outright or a fulfilled buy model as we have demonstrated in the earlier calls as well. Uh so bulk of the regions of churn are that and thus in spite of 35:55 35 minutes, 55 seconds this churn uh we continue to demonstrate a healthy growth uh for uh this quarter the growth was 8.1% and we are hopeful 36:02 36 minutes, 2 seconds of delivering a double digit growth from quarter 4 onwards in the standalone unware business 36:10 36 minutes, 10 seconds uh underset so uh would it be possible for you to maybe you know quantify how much of those churn is from those three reasons that you mentioned 36:20 36 minutes, 20 seconds uh That's majority of the churn. Uh 80% plus of our churn is actually because of these three reasons. 36:27 36 minutes, 27 seconds Yeah, that helps. So and uh my second question is regarding quick commerce volume. So how much did they contribute this quarter and uh and again with 36:36 36 minutes, 36 seconds regards to shipway, how much crossell did they achieve? 36:42 36 minutes, 42 seconds Sure. So we continue to see quickcommerce as a strong growth opportunity. uh and uh we have uh integrated with all leading coocommerce 36:50 36 minutes, 50 seconds platforms. Uh when we uh launched it full scale uh in quarter 4 of FI25, we had seen about 20 million order items 36:59 36 minutes, 59 seconds being processed. We have seen that number jump to about 70 million plus order items being processed in quarter 3 37:05 37 minutes, 5 seconds FI26. So just in the 9mon time frame, we have seen a strong growth in the quickcommerce volumes. uh while we have 37:12 37 minutes, 12 seconds seen a strong growth they are still uh still a small fraction in the overall transaction mix uh so hope that gives 37:20 37 minutes, 20 seconds you a perspective on the relative contribution of quickcommerce uh in terms of the shipway cross cell when we acquired shipe uh less than 5% of our 37:29 37 minutes, 29 seconds base was using shipe services and last quarter we had mentioned that uh this number has already crossed 10% and 37:37 37 minutes, 37 seconds continues to be in a similar uh trajectory even in this quarter as uh and uh we continue to see a strong adoption of shipway amongst uniare base. 37:48 37 minutes, 48 seconds But I also want to clarify that beyond the uniare customer base, shipwe also has a larger market opportunity in terms 37:57 37 minutes, 57 seconds of social media sellers, people selling on just their own website who may not need the services of uniare because uniare becomes relevant for anybody 38:05 38 minutes, 5 seconds who's selling on multiple channels. But anybody who's selling on social media, Instagram, etc. will still need to ship the goods to the end customer and will 38:14 38 minutes, 14 seconds need ship services. So the market opportunity for ship is much larger and while our focus is to continue to have a 38:21 38 minutes, 21 seconds strong cross-ell motion on the uniare base, our focus is to aggressively expand our sales and marketing to ensure that uh we are able to tap into 38:30 38 minutes, 30 seconds customers which are outside of uniare base as well. 38:37 38 minutes, 37 seconds Understood sir. One last question. So with uh regards to our international market present have we seen any significant client? So how's the traction there? 38:48 38 minutes, 48 seconds Yeah. So we continue to see a strong growth in our international business. Uh it is growing faster than our domestic business. We continue to add clients uh 38:56 38 minutes, 56 seconds in the in the regions. Uh we continue to operate in the same geographies in Middle East and Southeast Asia. And while we have seen strong growth in the 39:04 39 minutes, 4 seconds business, we continue to uh the international business continues to be profitable. 39:10 39 minutes, 10 seconds And in the recent times, we had also announced a partnership with Nail Express, which is Saudi Arabia's largest 39:17 39 minutes, 17 seconds logistics and express delivery partner to deepen our presence in the KSA e-commerce market. 39:26 39 minutes, 26 seconds Yeah, got it sir. Thank you. That's all from my Thank you. 39:32 39 minutes, 32 seconds The next question is from the line of Vinod Krishna from Aventers Wealth. Please proceed. Am I audible sir? 39:39 39 minutes, 39 seconds Yes I am. Yeah you're able. 39:41 39 minutes, 41 seconds So what would you what is your opinion on long-term uh trajectory of drop ship versus model in India? Uh that is my 39:49 39 minutes, 49 seconds first question and any category concentration with our uniare product and my third question is why do we have 39:57 39 minutes, 57 seconds such because e-commerce is having such a huge growth rate but our uniare is not getting similar growth rate. So maybe I'm wrong in understanding comparing 40:05 40 minutes, 5 seconds with the overall uniare thing. So if you can uh answer this three question like what will be the I think I I'm clear right. 40:16 40 minutes, 16 seconds Sure. Uh so drop ship uh model continues to grow faster than the other models uh primarily on the back of c brands 40:23 40 minutes, 23 seconds wanting to have greater c control on the customer experience. uh platforms also preferring it because uh it is less capital intensive and now the ecosystem 40:32 40 minutes, 32 seconds is available uh for brands to deliver a consistent customer experience on the drop ship model compared to 5 years ago 40:40 40 minutes, 40 seconds when the ecosystem wasn't available. So we have seen drop ship model continue to grow faster. Today it is contributing to nearly half the e-commerce market but is 40:48 40 minutes, 48 seconds expected to contribute about 65% in the next few years. 40:53 40 minutes, 53 seconds uh on the um the second question was about the growth of uniare versus the market. Uh uniare is uh processing a large portion of the e-commerce market. 41:03 41 minutes, 3 seconds We are processing about 25 to 30% of e-commerce drop ship volumes which means that we have effectively become an index 41:11 41 minutes, 11 seconds to e-commerce market. Uh we continue to grow faster than the market over many years. Uh so while there are certain pockets of within e-commerce that 41:20 41 minutes, 20 seconds continue to grow fast but there are also large pockets which have seen sluggish growth uh because of which the overall 41:27 41 minutes, 27 seconds growth is not at the same level as it used to be during the pandemic years but our growth uh is continues to be market 41:34 41 minutes, 34 seconds plus+ because uh the as our existing clients grow uh that is uh the growth of our existing clients is reflective of 41:42 41 minutes, 42 seconds the market growth but on top of that we've added new initiatives of uh launching new products, adding new customers because of which we continue 41:50 41 minutes, 50 seconds to demonstrate a market plus growth. Uh I'm sorry I forgot the third question that you had. Uh category concentration. 41:58 41 minutes, 58 seconds Uh so see we are a fairly well diversified player. Uh where we serve 45 plus product categories across fashion, lifestyle, beauty and cosmet. 42:15 42 minutes, 15 seconds So uh as you have seen the revenue is not de is not concentrated on a handful of customers. Similarly our revenue is 42:22 42 minutes, 22 seconds not concentrated on uh any particular category given that we process large volumes of India's e-commerce uh uh 42:30 42 minutes, 30 seconds transactions. Our category mix is reflective of the market mix where we've seen lifestyle, beauty and personal care 42:37 42 minutes, 37 seconds being electronics being some of the largest categories that is also reflective in our category mix as well. 42:43 42 minutes, 43 seconds But our uh category mix is fairly well diversified. Thank you. Thank you. 42:53 42 minutes, 53 seconds Thank you. 42:56 42 minutes, 56 seconds The next question is from the line of Pratik from Fermy 325 investment advisor. Please proceed. 43:03 43 minutes, 3 seconds Yeah. Hi. Am I audible? Yes. Are you audible? 43:07 43 minutes, 7 seconds Yeah. Hi. Uh I just wanted some clarification. And I just wanted to ask uh when a client uh you know uh 43:14 43 minutes, 14 seconds subscribes for uniare does he or she does the client get access to all the modules or is it uh does it depend on the client what they want? 43:26 43 minutes, 26 seconds Yes. So uh uh when we started our journey MS and WMS within Uniare were the first two modules that we launched. 43:34 43 minutes, 34 seconds So whenever an enterprise client signs for signs up for uniare they get the MS and WMS. uh that's the most selling 43:41 43 minutes, 41 seconds module for us. But as you launched newer offerings like omni channel, uni reo, uni capture, those are separate subscriptions that the brand has to take 43:50 43 minutes, 50 seconds up depending on their need. uh so yeah I uh just to follow up on that 43:57 43 minutes, 57 seconds so would it be possible you know to give a cohort basically uh as in when when a client starts a journey and they start 44:04 44 minutes, 4 seconds with a WMS and platform how do they scale up their relationship over the uh following period uh how many modules 44:12 44 minutes, 12 seconds they start to subscribe any sort of cohort that you could give yeah so uh most of our additions product 44:20 44 minutes, 20 seconds editions are relatively recent So we will not have any long-term cohorts for you to uh be able to do any analysis on 44:27 44 minutes, 27 seconds that. Having said that, we've just disclosed in our call today that we have seen a strong adoption of B2B and quickcommerce modules where 35 to 40% of 44:35 44 minutes, 35 seconds our enterprise clients uh use the B2B and quickcommerce modules and about 4 to 5% attach rate on the uni module. That 44:43 44 minutes, 43 seconds has happened just within the first 6 months of the product launch. Typically when a brand starts their journey as I said they start with the MS uh uh and uh 44:52 44 minutes, 52 seconds as they scale up their volumes they start implementing WMS within their warehouse. As they expand their retail footprint, omni channel becomes an 45:01 45 minutes, 1 second important use case and as their scale increases, uh they would need uni recomo to reconcile their payments uh because 45:08 45 minutes, 8 seconds there are many leakages that happens particularly on the uh returns workflow and similarly uni capture is a good 45:15 45 minutes, 15 seconds complement to uni because uniapture helps capture the proofs of the items that are going out and helps in the return validation as well. And similarly 45:24 45 minutes, 24 seconds as uh these brands scale up uh they would also want to expand to retail and wholesale and hence they would also need or or even quick commerce they would need our B2B quickcommerce suit as well. 45:37 45 minutes, 37 seconds Oh okay. Uh sorry last question on this this cohort uh before I get in get back in. So according to you when would you 45:44 45 minutes, 44 seconds know be able to start giving off what is it one year down the line two years down the line when do you think it would be meaningful enough for us you know to 45:51 45 minutes, 51 seconds start reading into the cohort data see uh in any B2B SAS solution it takes 45:58 45 minutes, 58 seconds time and it is a function of the product uh the m there is a gestation period for any SAS uh but in our experience at 46:07 46 minutes, 7 seconds least 12 to 18 months is something that we feel for any product before the uh product the cohorts mature. For some 46:14 46 minutes, 14 seconds products, it may take longer as well. Uh but bare minimum is 12 to 18 months. 46:20 46 minutes, 20 seconds Okay. Thank you so much. Thank you. Thank you. 46:27 46 minutes, 27 seconds The next question is from the line of Sumit Jan from CLSA. Please proceed. 46:33 46 minutes, 33 seconds Yeah. Hi, thanks for the opportunity. Am I audible? Yeah, Sumit, you're audible. 46:39 46 minutes, 39 seconds Yeah, couple. Yeah. Sir firstly congrats for a slight turn around in the sed 46:47 46 minutes, 47 seconds uh sir can I request you to speak loudly or uh come closer to your device and speak. Yeah sure sure. Am I audible now? Hello. 46:55 46 minutes, 55 seconds Am I audible now? Yes you're now audible. Please proceed. 46:59 46 minutes, 59 seconds Okay. Yeah. So wanted to check the double digit growth guidance that you gave for the next quarter. uh how sustainable you see that going forward 47:08 47 minutes, 8 seconds and what is leading to that? Is it like the more traction in your uh new products being launched or is it the 47:17 47 minutes, 17 seconds revival in the overall e-commerce market or are you guys gaining market share? 47:21 47 minutes, 21 seconds Can you give us uh throw some light on that double digit growth guys? 47:27 47 minutes, 27 seconds Yeah, summit. So the double digit growth we strongly believe that it's sustainable uh because it is a result of the efforts that we have been implementing over the last few quarters 47:36 47 minutes, 36 seconds which includes acceleration in our new enterprise acquisitions and revenue expansion initiatives which are now beginning to reflect in the growth 47:43 47 minutes, 43 seconds outcomes. We have consistently added 100 plus clients over the past several quarters and 125 plus specifically in quarter 4 FI25. 47:53 47 minutes, 53 seconds These new acquisitions take time to fully mature and have now started to give us incremental revenues leading to year-on-year growth in quarter 326 and 48:02 48 minutes, 2 seconds which gives us the confidence of delivering double digit growth in quarter 4 and uh along with this adoption of our new products where we 48:09 48 minutes, 9 seconds are seeing strong adoption across both B2B quick suite as well as uni reo in the first 6 months of the launch. uh a 48:16 48 minutes, 16 seconds combination of uh both these factors give us a confidence that we will continue to sustain double digit growth 48:22 48 minutes, 22 seconds in uniare from quarter 4i onwards got it that's very helpful and a followup to that is can you give us a 48:29 48 minutes, 29 seconds sense as to how many number of enterprise clients can you still tap into the market out there I remember at 48:37 48 minutes, 37 seconds the time of IPO you used to talk about some 10,000 enterprise clients can potentially be there for uniccommerce to 48:44 48 minutes, 44 seconds address. So can you just just give us a sense as to how you look at the overall enterprise client customer base? 48:52 48 minutes, 52 seconds Yeah, sure. Uh I think uh uh in terms of uh the client enterprise client base, one is we continue to see a strong uh 49:00 49 minutes launches of various dig digital first brands uh because in India because Indian market is so large a small niche 49:08 49 minutes, 8 seconds within the Indian e-commerce market also becomes a meaningful opportunity for any brand. So we continue to see brand launches across various sectors, various 49:16 49 minutes, 16 seconds niches niches because of which we are confident that there's a large pool of enterprise customers that are available. 49:23 49 minutes, 23 seconds At the same time, we have seen many legacy brands still haven't adopted the drop ship model and as more and more brands start adopting the drop ship 49:31 49 minutes, 31 seconds model, we will continue to see a pool of enterprise acquisitions widening for us. 49:38 49 minutes, 38 seconds The third reason is that there are still many categories which have still not become or have not adopted the drop ship 49:45 49 minutes, 45 seconds model and that should add to the enterprise pool. I think the journey of the drop ship model and for uniare in particular have just started. We have a 49:54 49 minutes, 54 seconds large pool of enterprise customers and we still feel confident that in the long term it should open up a market to the tune of 10,000 enterprise customers. We 50:02 50 minutes, 2 seconds should have significant headroom for growth uh uh for in terms of the new customer acquisition in terms of new 50:10 50 minutes, 10 seconds digital first brands uh legacy brands coming to drop ship model and new categories opening up on the drop ship model and uh at the same time we also 50:19 50 minutes, 19 seconds want to continue to focus on the quality of acquisition and that's why we've got Gorav on board who has uh a significant 50:28 50 minutes, 28 seconds experience in driving enterprise acquisition and our focus will now to be able to set up some high value looking 50:35 50 minutes, 35 seconds at high value deals in the enterprise segment uh with uh professional experience which should help you tap 50:43 50 minutes, 43 seconds into a large pool of enterprise customers as well. 50:47 50 minutes, 47 seconds I got it. That's very helpful. And secondly, I wanted to check I think you you guided for a break break even a bit 50:54 50 minutes, 54 seconds in your shipway business in the few coming quarters. So can you give us a sense for how long that will stay? What 51:02 51 minutes, 2 seconds are the nature of investments you are doing and by when can we see the IIDA improving into the profitable uh uh trajectory for for shipw. 51:14 51 minutes, 14 seconds Sure. So the investment areas summit are in the a fields of AI product and technology enhancements. We want to 51:21 51 minutes, 21 seconds enhance the sales and marketing capacity along with brand building initiatives. Shipway is a challenger in the market. 51:27 51 minutes, 27 seconds It's a relatively late entrant in the career large career aggregation space. 51:31 51 minutes, 31 seconds So we want to make sure that we are investing [cough] rightly into sales and marketing building a strong brand out of it. at 51:38 51 minutes, 38 seconds the same time building a very strong and scalable product which is AI first so that we continue to add value to the 51:46 51 minutes, 46 seconds career aggregation business um and hence we feel that in the for the next few quarters uh it it'll operate uh at 51:54 51 minutes, 54 seconds slightly below break even from adjusted AITA uh but having said that we the only way we know how to operate business is 52:02 52 minutes, 2 seconds to run them profitably. We just want to make we are making a very calibrated investment approach to make sure uh that we are able to put it on a strong 52:10 52 minutes, 10 seconds foundation for fast growth in this uh and we're hopeful that in the next few quarters we should be able to see a turn 52:18 52 minutes, 18 seconds we should be able to see uh them uh like the ship pay business both ship and convert becoming profitable. 52:26 52 minutes, 26 seconds Okay, got it. That's very helpful. Thanks and all the best. Thank you. 52:33 52 minutes, 33 seconds The next question is from the line of Kati from Suesh Advisor. Please proceed. 52:40 52 minutes, 40 seconds Yeah. Uh good morning Kapil. I hope I am audible. Yeah that you're audible. 52:44 52 minutes, 44 seconds Yeah thanks. So I just wanted to understand one thing. You indicated that your profitability in the universe side is 40% plus uh on an adjusted basis. So 52:54 52 minutes, 54 seconds the adjustment would be only for ESOP expenses or would there be anything else? Part two to that question is is there any more juice left for profitability improvement there? 53:05 53 minutes, 5 seconds Uh Karthi uh that's correct. We have done the adjustments only to the extent of ease of expense. Yes. 53:13 53 minutes, 13 seconds And for the second part Karthi yes the business has an inherent operating leverage as the revenue expands. We will continue to see an improvement in 53:20 53 minutes, 20 seconds profitability in uniare uh and uh you will continue to see a consistent growth in revenues and profits in the uniare and the overall unicom business. 53:31 53 minutes, 31 seconds Got it. Got it. Yeah. Thanks for the answers. Thank you. 53:36 53 minutes, 36 seconds Thank you ladies and gentlemen. In ensure to en that the management is able to address questions from the participant in this 53:44 53 minutes, 44 seconds conference. Please direct your question to co participant. Should you have a follow-up question, please rejoin the queue. The next question is from the 53:52 53 minutes, 52 seconds line of Chinm Neymar from Precient Capital. Please proceed. 53:57 53 minutes, 57 seconds Uh, hi sir, just uh wanted to follow up on uh one of the questions about wallet shares. So uh with respect to some of 54:06 54 minutes, 6 seconds the largest digital first brands on your roster like Lens card or mama do they 54:13 54 minutes, 13 seconds typically operate 100% through uni bear or do they split volumes in conjunction 54:20 54 minutes, 20 seconds with uh with some other platforms as well if you could give some color around that. And secondly, if you could uh talk about how customizable the software is. 54:31 54 minutes, 31 seconds Uh to what extent are you able to customize it to um the SKUs and inventory systems of the uh clients? 54:40 54 minutes, 40 seconds Some sense around that? 54:43 54 minutes, 43 seconds Sure. Uh as I mentioned before, given the nature of the product, it is difficult for a brand to operate multiple system. See effectively what we 54:51 54 minutes, 51 seconds are doing we are ensuring that the same inventory pool is getting exposed to multiple marketplaces at the same time. 54:58 54 minutes, 58 seconds If they were using two systems it is it is impossible for them to have a consistent inventory outlook across uh 55:05 55 minutes, 5 seconds different marketplaces. Uh and if they were not using the single system it would make it very suboptimal for them because a part of the inventory will be 55:14 55 minutes, 14 seconds visible somewhere else and part of the inventory will be somewhere else. So given the nature of the product uh a brand does not use multiple systems to 55:22 55 minutes, 22 seconds manage their orders and inventory and that's why by design we have 100% of the e-commerce volumes for any brand that is 55:29 55 minutes, 29 seconds using uniare uh the universe system as I mentioned before operates like a system of record 55:36 55 minutes, 36 seconds just like how an ERP operates you don't hear a brand operating with multiple ERPs right very similarly you uh don't see a brand operating with multiple order and inventory management system. 55:47 55 minutes, 47 seconds Uh sorry I missed the second part of the question that you had. 55:50 55 minutes, 50 seconds Sir, if you could talk about how customizable the product is with respect to the needs of the businesses. 55:59 55 minutes, 59 seconds Yeah. So we've been building this platform for more than a decade now and have built this in a fairly configurable way where different use cases can be 56:08 56 minutes, 8 seconds easily configured uh depending on the category, the product mix, the scale, the complexity of the operations. In 56:15 56 minutes, 15 seconds majority of the situations the the plain man vanilla configurations that we offer are uh are available. If there is a 56:23 56 minutes, 23 seconds specific need of a customer what we end up doing is that we understand that requirement and build it in a very generic way so that it not only serves 56:32 56 minutes, 32 seconds the needs of a particular customer but for a particular industry. uh and through over the last decade while we 56:39 56 minutes, 39 seconds were building this platform we have got many requirements from various customers but we have not implemented it in a bpoke manner we have instead 56:46 56 minutes, 46 seconds incorporated it as a general feature in the product so that it can be available to a wider uh customer base. 56:55 56 minutes, 55 seconds Yep. So so just as an example if you if you are able to serve a fashion customer they need uh they need unique 57:02 57 minutes, 2 seconds serialization. So they want to track each and every item. A BPC customer if they're selling cosmetics. So lipsticks are very small in size as an example. So 57:11 57 minutes, 11 seconds they need to print labels which are very small in size can be pasted on the product itself. The there are these small nuances that over time we have 57:19 57 minutes, 19 seconds built in the product because of which uh it's available to a wide variety of customer base depending on the product category that they are in. 57:28 57 minutes, 28 seconds Uh and the filter that's very helpful. Thank you. 57:33 57 minutes, 33 seconds Thank you. The next question is from the line of Arvind Aurora from Aquare Capital. Please proceed. 57:41 57 minutes, 41 seconds Hello. Hi. Good morning Kapil. So my question is on uh since uh if I see like trailing 12 months basis uh our data is 57:49 57 minutes, 49 seconds all like data process is almost 1.1 billion. So any plan on data monetization like using data analytics or something like that? 58:01 58 minutes, 1 second Uh so uh our focus is to keep adding new capabilities in our products. Uh I think we are evaluating internally on how uh 58:10 58 minutes, 10 seconds we can um uh look at data. We have amassed data over the last more than a decade having served thousands of 58:16 58 minutes, 16 seconds customers uh and have a rich view on uh the information but we are also cognizant of the new DPDP act. So we are 58:25 58 minutes, 25 seconds evaluating internally on what we can launch which uh is within the regulatory ambit but at the same time add meaningful value to our customer base. 58:37 58 minutes, 37 seconds Understood. Okay. So and uh the second question is on uh since you mentioned that uh and even if I compare 58:45 58 minutes, 45 seconds quarteronquarter uh standalone numbers so our revenue is all increased 8% but our pay is increased drastically. So 58:53 58 minutes, 53 seconds same will happen like going forward even you are transfer you are guiding uh sorry [clears throat] uh you are guiding double digit growth 59:01 59 minutes, 1 second so our paid would be at higher level due to operating leverage is my understanding correct see in the uh definitely yes so our we 59:10 59 minutes, 10 seconds have a inherent strong inherent operating leverage because of which our profits typically tend to grow faster than our revenue growth but at the same 59:18 59 minutes, 18 seconds time uh we want to invest in the business in terms of AI investments for product and technology as as we 59:26 59 minutes, 26 seconds mentioned in the beginning. So for example, we have launched uni bot in uniare which is a genai solution enables faster decision making simplification of 59:34 59 minutes, 34 seconds experience uh for our customer base and we we anticipate more investments uh in 59:41 59 minutes, 41 seconds the AI field for uniare. uh so uh it may not the kind of growth in profit may not be visible may not be visible every 59:50 59 minutes, 50 seconds quarter but in the long term definitely a large portion of our revenue growth flows to our bottom line so our profits will continue to grow faster than the 59:58 59 minutes, 58 seconds revenues and just to add on just to add on here that during quarter three quarter C yearon year uh as you 1:00:07 1 hour, 7 seconds rightly mentioned that our revenue has increased 8% which has contributed to an increase in adjusted beta BB bad as well 1:00:14 1 hour, 14 seconds and uh uniare operates with high gross margin profile. The uni's gross margin is around near about 80%. And 1:00:23 1 hour, 23 seconds incremental volumes have a direct positive impact on the bottom line as well. And as Capil also mentioned that as our revenue growth momentum increases 1:00:31 1 hour, 31 seconds to the double digit trajectory some in quarter 4 uh FA26 and onwards this operating leverage should further expand 1:00:38 1 hour, 38 seconds our profit pools and also help us to generate more and more cash. 1:00:43 1 hour, 43 seconds Understood. Understood. And kap just last one as you mentioned we are in investing in AI product and everything. 1:00:50 1 hour, 50 seconds So these will uh open up a new stream of uh revenue correct in going forward. 1:00:56 1 hour, 56 seconds Yes that's correct. Uh it will add meaningful revenue add meaningful value to our existing customers plus it will open new monetization opportunities for us. 1:01:07 1 hour, 1 minute, 7 seconds Just uh last request uh a couple. So going forward uh is it possible for you to disclose the numbers uh at a like uh 1:01:16 1 hour, 1 minute, 16 seconds different product level and uh even like like you said for uniare also you are uh getting revenue from two streams like 1:01:24 1 hour, 1 minute, 24 seconds one is existing business and second would be the growth growth business. So if you can disclose that from uniare and then for shift way and convert way also 1:01:32 1 hour, 1 minute, 32 seconds if you can disclose the numbers separately is it possible? 1:01:36 1 hour, 1 minute, 36 seconds Yeah. So we disclose the growth of net growth of our existing customers annually in the form of a metric called NR. NR is net revenue retention which 1:01:44 1 hour, 1 minute, 44 seconds means that if NRR is 103% uh if a customer gave me 100 rupees last year it gives me 103 rupees this year. 1:01:52 1 hour, 1 minute, 52 seconds So we disclose this metric annually. 1:01:54 1 hour, 1 minute, 54 seconds Along with that we disclose about our new enterprise acquisitions every quarter. So that gives a good perspective about uh the various levers 1:02:03 1 hour, 2 minutes, 3 seconds impacting the growth. The new products that we're adding contribute to our NR. 1:02:08 1 hour, 2 minutes, 8 seconds Uh so as the new products start maturing, we should see a improvement in our NR going forward. In the current 1:02:16 1 hour, 2 minutes, 16 seconds year, given these products are just recently launched, they may not contribute meaningfully to the current year financials. But as I mentioned, we 1:02:23 1 hour, 2 minutes, 23 seconds are investing for future growth. As a result of which in the subsequent years you should see a strong contribution coming from these new launches that we are investing in the current year. 1:02:35 1 hour, 2 minutes, 35 seconds Understood. But is it possible to disclose the revenue numbers and transaction process at a quarterly level so that for us it's 1:02:44 1 hour, 2 minutes, 44 seconds also easy to understand uh where we are going. Uh you mean for the new product right? 1:02:52 1 hour, 2 minutes, 52 seconds For new product. Yes. And yeah so yeah so as they become meaningful uh we 1:03:00 1 hour, 3 minutes will we will definitely evaluate this internally. We also want to make sure as a management team that it's easier to model the business and uh uh like better 1:03:09 1 hour, 3 minutes, 9 seconds predict uh have better predictability on our financial path. Uh but like I said today the products are very nent. uh it 1:03:17 1 hour, 3 minutes, 17 seconds may not u uh uh it may not give a full picture as the revenue matures of some of these new products we will definitely 1:03:25 1 hour, 3 minutes, 25 seconds evaluate the possibility of disclosing this so that it becomes uh more accurate to model the business understood okay thank you thank you uh 1:03:34 1 hour, 3 minutes, 34 seconds Capri uh not not only to answer my question it's all the efforts you and your team is putting which is I think 1:03:41 1 hour, 3 minutes, 41 seconds will clearly right now also clearly visible and in future also we'll uh see the growth momentum. Thank you. Thank you all. 1:03:49 1 hour, 3 minutes, 49 seconds Thanks for your kind words. 1:03:51 1 hour, 3 minutes, 51 seconds Thank you ladies and gentlemen. Due to time constraints, that was the last question for today. I now hand over the 1:03:59 1 hour, 3 minutes, 59 seconds conference to Mr. Capil Makita sir for closing comments. Over to you sir. 1:04:06 1 hour, 4 minutes, 6 seconds Thank you everyone for joining the call today. We hope we have been able to address your queries. Should you have 1:04:13 1 hour, 4 minutes, 13 seconds any further queries or clarifications, please feel free to reach out to us or strategic growth advisors, our investor 1:04:21 1 hour, 4 minutes, 21 seconds relations advisor. Thank you and have a good day. 1:04:27 1 hour, 4 minutes, 27 seconds Thank you on behalf of Uni-Commerce Esolution Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.