Zensar Technologies Ltd — Q4 FY26

Zensar Technologies Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=4HXzsGH2Jd0 Published: 2 weeks ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to Zensar Technologies Limited Q4 FI26 earnings conference call hosted by MK Global Financial Services Limited. 0:14 14 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation 0:23 23 seconds concludes. Should you need assistance during the conference call, please sign an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. 0:34 34 seconds I now had conference over to Mr. Zimit Gandhi from MK Global Financial Services. Thank you and over to you Mr. 0:42 42 seconds Gandhi. 0:47 47 seconds Thank you operator. Uh good evening everyone on behalf of MK Global Financial Services I welcome you all to 0:54 54 seconds the Ventra Technologies quarter 426 earnings call. We have with us uh Mr. 1:00 1 minute Manish Tandan CEO and managing director Mr. Kibari chief financial officer and other members from the senior management 1:08 1 minute, 8 seconds team. Before I hand over the call to Manish, I would like to highlight the that the safe harbor statement on the 1:16 1 minute, 16 seconds second slide of the earnings presentation is assumed to be read and understood. Thank you and over to you Manish. 1:24 1 minute, 24 seconds Thank you Jim and um hello, good morning, good afternoon and good evening everyone. Uh thank you all for taking the time to join us today to discuss 1:33 1 minute, 33 seconds Densar's financial results for the fourth quarter and full year FY26. 1:39 1 minute, 39 seconds With me on this call are the usual suspects uh chief financial officer Pulkit Bandari, Chief Operating Officer 1:47 1 minute, 47 seconds Vijay Simma and Chief HR officer Vive Cranjan. 1:52 1 minute, 52 seconds Let me start with talking about the macro. Geopolitical uncertainty and sudden policy shifts have become the new 2:00 2 minutes normal. The rules of business are evolving and tighter immigration policies are beginning to leave their 2:07 2 minutes, 7 seconds mark. Despite these headwinds, we in the IT industry have demonstrated remarkable resilience. 2:15 2 minutes, 15 seconds Turning to Zensar's performance, we delivered a modest yet resilient revenue performance this year centered around 2:22 2 minutes, 22 seconds offshore volume growth. Importantly, our analyzed order book profitability and cash position collectively reach to 2:32 2 minutes, 32 seconds their strongest levels, demonstrating a disciplined execution and continued operating strength. Our AI native 2:40 2 minutes, 40 seconds offerings scaled to enterprise level adoption in Q4 driven by multiple high value AIEL wins validating our early and 2:50 2 minutes, 50 seconds decisive investments in the space with 85% of our workforce AI certified we are 2:57 2 minutes, 57 seconds systematically transitioning to a delivery model where AI is embedded in every engagement driving accelerated 3:04 3 minutes, 4 seconds technology modernization and measurable productivity gains. Our strategic large deal win further underscores the bold 3:13 3 minutes, 13 seconds forwardleaning capabilities and client acceptance of our solution. 3:18 3 minutes, 18 seconds Moving towards our financial performance for Q4 and fullear FI26. 3:24 3 minutes, 24 seconds For Q4 FI26, the company posted revenues of 158.4 million, a year-over-year growth of 1% and a sequential decline of 3:33 3 minutes, 33 seconds 1.3% in reported currency. In INR terms, this equates to a year-over-year growth of 67% and a sequential growth of 1.4%. 3:45 3 minutes, 45 seconds For the full year FI26, the company posted revenues of 643.7 million, 3:52 3 minutes, 52 seconds year-over-year growth of 3.1% in reported currency. In INR terms, this equates to year-over-year growth of 7.7%. 4:02 4 minutes, 2 seconds For fullear reported currency basis revenues grew by 11% in banking and financial services 8% in healthcare and 4:11 4 minutes, 11 seconds life sciences in manufacturing consumer services and telecom media and technology vertical revenue declined by 4:19 4 minutes, 19 seconds 6 and 9.7% respectively. 4:23 4 minutes, 23 seconds Additionally, we are pleased to inform that our annual profit after tax improved to dollar 87.2 2 million, a year-over-year growth of 13.6%. 4:34 4 minutes, 34 seconds Net cash and cash equivalents positions stood at 319.5 million, a year-over-year growth of 10%. 4:43 4 minutes, 43 seconds Order book supported by the large deal win increased to an all-time high level of 401.8 million this quarter, a sequential growth of 122.9%. 4:56 4 minutes, 56 seconds Utilization improved to 84.3% sequential quarter growth of 80 beeps. 5:03 5 minutes, 3 seconds Our annual customer satisfaction score improved by 470 beeps to its highest 5:10 5 minutes, 10 seconds ever level positioning Zensar in the top three of industry sees. 5:18 5 minutes, 18 seconds This coupled with the industry-leading 9.8 Eight attrition demonstrates our commitment to disciplined execution and 5:25 5 minutes, 25 seconds our enriching culture that fosters long-term relationships while continuing to execute our strategic priorities. 5:34 5 minutes, 34 seconds With that, I will now invite Pulkit Bandari to provide an update on critical financial data. 5:44 5 minutes, 44 seconds Thank you Manish. Good day everyone. 5:46 5 minutes, 46 seconds Thank you all for joining this call. I will take you through some of the key business and financial metrics for the quarter ending March 26. 5:54 5 minutes, 54 seconds The AI ecosystem is evolving rapidly with clients expressing willingness to expand adoption. However, a majority of 6:02 6 minutes, 2 seconds AI spend is being repurposed from existing engagement such as application development and testing, creating 6:09 6 minutes, 9 seconds pressure on renewals and pricing. Our ability to adopt this evolving service model combined with long-term strategic 6:17 6 minutes, 17 seconds client partnerships positions us well to deliver tailored solutions by integrating AI enhancements into our 6:24 6 minutes, 24 seconds core service offerings. We aim to drive measurable sustainable value for clients. 6:30 6 minutes, 30 seconds The reported revenue for the fourth quarter financial year 26 stood at 158.4 4 million in USD terms reflecting a 6:39 6 minutes, 39 seconds growth of 1% YI and a degrowth of 1.3% sequentially in reported terms in the constant currency terms sequentially it 6:48 6 minutes, 48 seconds degrada this quarter contracted by 130 bits sequentially driven by lower volumes due 6:56 6 minutes, 56 seconds to lower working days uh that's around.3% reversal of leave utilization benefit of 7:03 7 minutes, 3 seconds Q3 which has been a past practice as of around 1.1%. 7:08 7 minutes, 8 seconds Increase in other costs 1.1% which includes initial cost with regards to large deal implementation and SGNA uh 7:15 7 minutes, 15 seconds which has been offset by a positive forex impact of around 1.2%. 7:21 7 minutes, 21 seconds Our pat margin for the quarter stood at 14.4% expanded by 50 bits. Some other key highlights, we opened a delivery 7:29 7 minutes, 29 seconds center in Belgrade, Serbia. We intend to leverage this for our clients for tapping in highquality talent and nearshore benefits. 7:38 7 minutes, 38 seconds Our order book for the quarter stood at 401.8 million which includes large deal signed during the quarter. Cash 7:45 7 minutes, 45 seconds including investments stood at 319.5 million. Our attrition increased to 9.8%. 7:51 7 minutes, 51 seconds ETR for the quarter is 23.7%. 7:55 7 minutes, 55 seconds Diluted EPS grew by 9.2 per share which is 5.6% 6% growth quarter on quarter. 8:02 8 minutes, 2 seconds FI26 saw an improvement of our ESG scores across rating agencies. For instance, now we are 87 percentile in 8:11 8 minutes, 11 seconds Ecoadis leadership category in CDP and 88th percentile in 8:17 8 minutes, 17 seconds S&P Global. The board of directors has approved a final dividend of 12.6 six per share for financial year 2026 which 8:26 8 minutes, 26 seconds is 630% of face value subject to the approval of shareholders in the upcoming annual general meeting of the company 8:34 8 minutes, 34 seconds with this our total dividend for the year adds up to 750% of face value with that I will now invite Vijay our chief 8:42 8 minutes, 42 seconds operating officer to comment further on Q4 FI26 result thank you Manish and Pulkit greetings 8:50 8 minutes, 50 seconds everyone I will share details about our operational efficacy, service line performance, annual CES and AI journey. 9:00 9 minutes Uh on the operational efficacy front, our utilization for the quarter stood at 84.3% 9:06 9 minutes, 6 seconds which is a 80 basis point growth quarteron quarter. The rigor associated with accelerated fulfillment and capability enrichment continued in Q4. 9:17 9 minutes, 17 seconds We had a gross addition of 968 employees in this quarter. As Manish stated, voluntary attrition was 9.8%. 9:26 9 minutes, 26 seconds This is the fifth successive quarter where our voluntary attrition has been below 10%. 9:33 9 minutes, 33 seconds The offerings from our service lines and industry services groups continue to resonate well with our clients. The 9:41 9 minutes, 41 seconds share of revenue from our service lines increased to 71.6% 6% in Q4 which is 440 9:48 9 minutes, 48 seconds basis points higher YI on a Y reported currency basis cloud infrastructure and 9:56 9 minutes, 56 seconds security services grew by 13% data engineering and analytics grew by 8% 10:02 10 minutes, 2 seconds products and platforms including CMO services grew by 6% enterprise 10:08 10 minutes, 8 seconds application services grew by 1.2% 2%. As spoken by Manish previously, the annual 10:16 10 minutes, 16 seconds client experience survey was conducted in Q4. We clocked our highest ever score on both the overall client experience 10:25 10 minutes, 25 seconds index as well as the satisfaction, advocacy, loyalty and business value dimensions. Our experience index 10:33 10 minutes, 33 seconds improved by 470 basis points and we have moved further up within the top quartile of industry ranking. The AI talent 10:42 10 minutes, 42 seconds transformation initiative has seen significant growth in FI26. We upskilled 85% of our workforce in AI by leveraging 10:52 10 minutes, 52 seconds the multilevel training programs of our Ignite AI Academy as well as the various certification drives that we have 11:00 11 minutes instituted in collaboration with our alliance partner. The number of AI learning hours per person increased by 11:10 11 minutes, 10 seconds 136% in FY26 as compared to FY25. 11:15 11 minutes, 15 seconds This demonstrates our unwavering commitment to developing future ready talent at scale. We continue to deliver 11:23 11 minutes, 23 seconds significant value to our clients in key AI engagements. We are continuously reimagining our offerings leveraging AI 11:31 11 minutes, 31 seconds technology. Some of the refined offerings that we provided to our clients in Q4 are the agentic foundry 11:40 11 minutes, 40 seconds that solves complex workflow issues for BFSI clients, quality intelligence, 11:47 11 minutes, 47 seconds context intelligence, synopsi guide. With that we can now open the line for questions. 11:57 11 minutes, 57 seconds Thank you very much. We will now begin the question and answer session. Anyone who wish to ask a question may press star N1 on their touchstone telephone. 12:06 12 minutes, 6 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use 12:13 12 minutes, 13 seconds handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question assembles. 12:32 12 minutes, 32 seconds Sir, we have first question from the line of from Nitin Pandaman from Invest. Please go ahead. 12:41 12 minutes, 41 seconds Yeah. Hi, good evening everyone. Thank you for the opportunity. 12:45 12 minutes, 45 seconds uh uh Manish uh for the uh if you could give some color on uh 12:53 12 minutes, 53 seconds what why we have seen a sort of a broad-based kind of a decline any change in clients uh behavior uh because our 13:02 13 minutes, 2 seconds sees scores are pretty good. Normally one would think that would mean automatically more business. Uh and if 13:08 13 minutes, 8 seconds you could layer it up with whether this was seen uh in the early part later part of the quarter and would that mean that 13:17 13 minutes, 17 seconds uh you know at least in the near term Q1 also could see a similar kind of a decline kind of an impact as a run 13:23 13 minutes, 23 seconds through uh some color and context around what really happened and why it's happened. 13:31 13 minutes, 31 seconds Uh thank you Nathan and u uh I think uh very relevant uh question. Uh so um two 13:39 13 minutes, 39 seconds things uh one is the usual suspects have caused the PL problem which is PMT uh 13:46 13 minutes, 46 seconds sector uh as a whole. Uh the second uh thing was that we were expecting the 13:55 13 minutes, 55 seconds large deal to close in Q3 and start uh in Q4 but the deal closure actually 14:03 14 minutes, 3 seconds happened in February. So uh we were not able to recognize uh any revenues 14:11 14 minutes, 11 seconds uh for as far as the or any material revenues from the large deal. So those 14:18 14 minutes, 18 seconds uh were the uh biggest things that uh we saw uh TMT will remain under pressure 14:28 14 minutes, 28 seconds and it'll remain under pressure for uh next few quarters as you have seen uh 14:34 14 minutes, 34 seconds large companies like Oracle have let go of 30,000 people. There are companies like Snap and there are companies uh 14:42 14 minutes, 42 seconds like box which have let let go of uh nearly 50% of their people and uh that 14:51 14 minutes, 51 seconds is going to that uh is basically going to reflect on uh other this thing I 14:59 14 minutes, 59 seconds would say that um EU and essay is back on uh uh on on the uh We have writed the 15:09 15 minutes, 9 seconds ship and we should see good growth there. TMT will continue to be uh under stress at least for for us. FSI will 15:18 15 minutes, 18 seconds continue to to grow. uh healthcare life sciences will be under stress and that 15:25 15 minutes, 25 seconds is primarily because uh as mentioned to you last uh last call that we have been 15:32 15 minutes, 32 seconds consolidated out of a couple of accounts and uh uh MCS also we will uh we are not 15:41 15 minutes, 41 seconds expecting any declines we are expecting some growth sure I hope I hope I've answered your 15:51 15 minutes, 51 seconds Yes, you did. So, I I think the broad take is that uh because growth is back in quite a EU and SA and BFSI will grow 16:00 16 minutes and uh MCS will also grow. Um so would that mean that at least in the near term we are not going to have a decline 16:09 16 minutes, 9 seconds quarter. It should be a growth quarter broadly. 16:12 16 minutes, 12 seconds Yeah, we are u as we stand uh we don't see uh a degrowth uh quarter in Q1 for 16:21 16 minutes, 21 seconds sure but uh as you know I mean things are changing so rapidly in Nitan as you know uh not just from a market 16:30 16 minutes, 30 seconds perspective but also from the geopolitical situation and tariffs and so many of these uh these things uh that 16:40 16 minutes, 40 seconds it is becoming uh very difficult to predict with shortity but I can say that 16:46 16 minutes, 46 seconds where we stand today we are not seeing a degrowth scenario. 16:53 16 minutes, 53 seconds Got it. Uh just two more quick ones. Uh one is on the uh deal ramp. Uh how 17:00 17 minutes should we think of uh how this ramp goes through uh the ramp up of the deal? And the second one was uh the deal related 17:09 17 minutes, 9 seconds costs uh which we saw the initial cost of 110 basis points this quarter. How should we see that playing out through the year? 17:18 17 minutes, 18 seconds Sorry. Uh uh but then what's the second part? What is the cost that you mentioned? uh the deal related initial 17:25 17 minutes, 25 seconds costs how should we see that sort of panning out through the years. Yeah. So let let me let me take that. 17:31 17 minutes, 31 seconds Now when you look at uh the first part of your question in terms of how does the ramp up around revenue looks like for large deal uh I would say it will be 17:40 17 minutes, 40 seconds while uh we are on track we have started basically kind of working with them very closely. uh the the ramp up will take 17:48 17 minutes, 48 seconds some time because it's uh it has its own complexities. Transition always is uh is a lengthy process uh where basically 17:55 17 minutes, 55 seconds multiple I would say variables come into play but it's going and tracking I would say well uh difficult to give you an 18:04 18 minutes, 4 seconds exact number but uh we would hope that uh uh Q1 should see some part of revenue 18:10 18 minutes, 10 seconds coming in and uh the the full-fledged revenue should come from Q3. Q2 should also basically benefit a little bit but 18:18 18 minutes, 18 seconds the the the proper and the full ramp up I I would say basically is Q3. Uh when you look at the cost structure uh we've 18:25 18 minutes, 25 seconds already started kind of uh hiring for the for the large deal and to that extent there's been a uh expansion in 18:33 18 minutes, 33 seconds number of people and costs associated with them in the panel that you see today. Yeah. But um as what we have 18:40 18 minutes, 40 seconds called out earlier as well during the transition time frame during the ramp up period uh there will be some pressure on 18:48 18 minutes, 48 seconds the margins while we basically will try and see how we can cover and uh and and and plan for them but there will be some 18:56 18 minutes, 56 seconds pressure which you should be uh expecting at least in Q1 Q2. 19:02 19 minutes, 2 seconds Okay. Sure. Got it. And uh one more if I may from a deal uh pipeline perspective 19:09 19 minutes, 9 seconds and closure uh how do you see that because of late I think lot of earnings calls a lot of talk was on hyper 19:18 19 minutes, 18 seconds competitiveness and uh uh sort of pressure on margins. So just wanted your thoughts on that and that's all from my side. Thank you so much. 19:27 19 minutes, 27 seconds Yeah listen so again a very relevant question. Uh see the competitive intensity is going up tremendously and 19:36 19 minutes, 36 seconds um uh so much so that we are seeing tier ones competing for deals which uh a few months back they wouldn't even look at. 19:47 19 minutes, 47 seconds Okay. I can tell you that uh almost uh everywhere we are encountering a tier 19:54 19 minutes, 54 seconds one uh in our competitive set which was not the case a few months uh months 20:01 20 minutes, 1 second back. As far as our pipeline is concerned, u it is pretty good. Um from 20:09 20 minutes, 9 seconds where I see uh things uh at least I'm not worried too much about our uh our 20:16 20 minutes, 16 seconds pipeline as uh as of now and even the order booking that you see if even if you exclude the large deal uh our order 20:25 20 minutes, 25 seconds booking has been um of the order of 200 million. 20:29 20 minutes, 29 seconds Yeah. uh plus 206 million 206 million or so. So um uh while the 20:36 20 minutes, 36 seconds competitive intensity uh has increased tremendously uh we are stepping up to the plate and making sure that uh we are 20:45 20 minutes, 45 seconds not only bidding but winning as much as we can. 20:50 20 minutes, 50 seconds Sure. Thank you so much and all the best. Thank you. 20:58 20 minutes, 58 seconds We have next question from the line of engine from securities. Please go ahead sir. 21:16 21 minutes, 16 seconds I'm audible to you. 21:24 21 minutes, 24 seconds As there is no response from the line of Mr. Panic, we take the next question. Correct. 21:38 21 minutes, 38 seconds I I think we can go to the next question then if Okay, sir. 21:47 21 minutes, 47 seconds Sir, we have next question from the line of Sep Sha, Equity Securities. Please go ahead. 21:54 21 minutes, 54 seconds Yeah, thanks. Thanks for the opportunity. Uh, Manish, uh, we clearly understand that the sector is facing too 22:02 22 minutes, 2 seconds many headwinds at the same time which are led by tech as well as geopolitical issue and macro issue. But uh answer to 22:12 22 minutes, 12 seconds that could be a consistent traction in the order intake uh which helps us in terms of uh driving a predictable consistent growth quarter after quarter. 22:23 22 minutes, 23 seconds So I think we did this in this fourth quarter but as a phenomena do you believe we need to further strengthen 22:30 22 minutes, 30 seconds our large team and uh I'm not saying every quarter we can have a mega deal or large deal but uh at least the order 22:39 22 minutes, 39 seconds intake continues to remain above 1.3 1.4x for a company like a midcap which 22:46 22 minutes, 46 seconds helps to have a sustainable growth on an ongoing basis. So how are you looking at this angle uh and uh strengthening the 22:54 22 minutes, 54 seconds large deal formation team to perform on a consistent basis. 23:01 23 minutes, 1 second Again seep thank you u thank you for that question. You can see we are all in on AI and uh as you can see one of the 23:10 23 minutes, 10 seconds reasons for our large deal win uh was uh our AI solutioning and we have taken 23:18 23 minutes, 18 seconds this uh to the next level. Now uh none of our uh deals actually large deals go 23:26 23 minutes, 26 seconds without a significant AI uh component uh to it. uh we have created new solutions, 23:33 23 minutes, 33 seconds new offerings um and we through use of AI we are targeting newer segments and shaping uh 23:42 23 minutes, 42 seconds more large deals. the results um are uh obviously we'll still wait for the 23:49 23 minutes, 49 seconds results to come out but um uh our our response to I believe that uh having a 23:58 23 minutes, 58 seconds healthy order book and having a healthy pipeline is uh is directly refle 24:04 24 minutes, 4 seconds directly reflects on our focus on AI and how we have changed our go to market uh 24:12 24 minutes, 12 seconds perspective Okay. Okay. And uh this the TMT top 24:21 24 minutes, 21 seconds client uh one can assume the growth could be uh flattish or marginal decline 24:28 24 minutes, 28 seconds rather than a significant uh decline may continue on a going forward basis because the contribution of that client 24:36 24 minutes, 36 seconds to the revenue would have been now between 6 to 8%. 24:41 24 minutes, 41 seconds We will see continued decline in that uh uh account uh very clearly because uh uh 24:49 24 minutes, 49 seconds that account itself uh uh you know there there is a um there is a insourcing 24:56 24 minutes, 56 seconds paradigm that uh is being talked about in that uh account. They are cutting costs uh significantly in line with 25:06 25 minutes, 6 seconds other technology companies actually. So if you uh if you look at it in our 25:13 25 minutes, 13 seconds projections uh we have not taken any growth in that account we have seen we 25:20 25 minutes, 20 seconds have in fact budgeted for continuous decline in that uh that account. 25:26 25 minutes, 26 seconds Yeah. Yeah. And in the backdrop of that uh do you believe the coming year the 25:33 25 minutes, 33 seconds growth outside the mega deal could still be a decent growth and higher than what 25:39 25 minutes, 39 seconds we have registered in the FI 2026 hope uh uh hope is eternal runs eternal 25:49 25 minutes, 49 seconds if we didn't have hope uh you know there would be too many suicides in general so hope runs eternal uh but uh we have 25:58 25 minutes, 58 seconds taken a prag pragmatic uh view of uh where we stand our budgets uh and so on 26:07 26 minutes, 7 seconds are uh you know not a statement of aspirations but a statement of reality as we see today. I would also say that 26:16 26 minutes, 16 seconds the reality that we see today keeps changing and that is the that is the whole issue um that we have. Uh the good 26:26 26 minutes, 26 seconds news is uh uh as an as a smaller agile organization we are better suited to 26:33 26 minutes, 33 seconds respond to those changes and that is what we are uh we are trying to trying 26:39 26 minutes, 39 seconds to do but I can tell you that uh our uh FI27 performance 26:47 26 minutes, 47 seconds uh will be contingent on our performance on our large deal. There is no actually I won't even call it a large deal. It's 26:54 26 minutes, 54 seconds a mega deal and uh it will be contingent to some extent on the performance uh that we can uh uh what we do on the mega deal. 27:06 27 minutes, 6 seconds Okay. Okay. On this mega deal, can you give us color what has led us to win that deal? If I'm not wrong, we have 27:15 27 minutes, 15 seconds replaced one of the tier one incumbent and how we are replicating this across sectors, verticals and make this 27:23 27 minutes, 23 seconds phenomena uh at least not quarter after quarter or one or two such instances in the whole year. 27:34 27 minutes, 34 seconds So I think uh I don't want to comment too much on the large deal because we have given a mega deal. uh we have given whatever we had to in our press release. 27:45 27 minutes, 45 seconds uh but uh you know I would say that uh it really enhances our capabilities to 27:53 27 minutes, 53 seconds do deals of this size and uh uh our clients and prospects and the analysts 28:00 28 minutes and advisers have noticed uh that uh also as we are executing this uh mega 28:07 28 minutes, 7 seconds deal uh we are uh becoming demonstrably uh competent uh to all these people and 28:15 28 minutes, 15 seconds hence uh we are hoping that uh we'll be able to at least bid for more larger 28:24 28 minutes, 24 seconds deals uh even if we are even if we win or we don't win. 28:30 28 minutes, 30 seconds Okay. Thanks. If I have more will come in the follow. 28:36 28 minutes, 36 seconds Thank you. We have next question from the line of Bikar from Unified Capital. Please go ahead. 28:44 28 minutes, 44 seconds Uh gentlemen, good evening and Manish. 28:46 28 minutes, 46 seconds Uh congrats on navigating a tough environment. Uh couple of questions. Uh in the past, you've always given us a qualitative flavor on uh the size of deal pursuits of deal pipeline, right? 28:57 28 minutes, 57 seconds Uh if you had to kind of quantify that statement relative to perhaps where we have where same time last year. Uh would 29:04 29 minutes, 4 seconds you say that pie has shrunk or if it has expanded if you could just help us imagine uh that pursuit pipeline there? 29:11 29 minutes, 11 seconds That's point number one. Uh and the second question is on the mega deal. Uh you know very simple back of the angle of calculation indicates the revenue 29:19 29 minutes, 19 seconds potential of roughly 9 to 10 million per quarter right starting Q2. Uh is is there a similar ballpark your delivery is working with as we step into Q2 by 27 29:28 29 minutes, 28 seconds uh these two questions. And lastly on the margin front u you know if you could just walk us through uh the incremental labor cost is that entirely attributable 29:37 29 minutes, 37 seconds to investments for the mega deal uh or is there a organic path uh to that wage cost inflation as well? Thank you. 29:47 29 minutes, 47 seconds Yeah. So um uh great uh great questions. 29:52 29 minutes, 52 seconds Uh the first question if I may I'm not mistaken is pipeline related. So see 29:59 29 minutes, 59 seconds there are two parts uh to that uh to that answer. One is have we increased our addressable market? The answer is 30:08 30 minutes, 8 seconds definitely yes. Uh and uh second is have we increased our uh pipeline? The answer 30:15 30 minutes, 15 seconds to that is also uh yes. But um uh again please remember that uh we converted a 30:25 30 minutes, 25 seconds $20 whatever $10 million deal which uh dropped from the pipeline uh because it 30:33 30 minutes, 33 seconds got converted. We wish to convert even more of those. So just looking at the uh 30:42 30 minutes, 42 seconds pipeline change may not give us the the right answer. uh and uh this is something that we monitor on a pretty 30:51 30 minutes, 51 seconds much weekly to monthly basis as to how the pipeline is doing and I can say that uh uh I feel good about the pipeline 30:59 30 minutes, 59 seconds that we have right so yeah I mean if I can just stretch on that information so you know 31:07 31 minutes, 7 seconds net of that large deal right I think uh the the deal that we kind of booked this quarter was about 192 million I think one of your colleagues mentioned a 31:15 31 minutes, 15 seconds number of 206 six. I'm I'm just kind of netting off the 210 from the reported Q4 number. Uh what what's the right number? 31:22 31 minutes, 22 seconds Is it 196 or is it 210? 31:25 31 minutes, 25 seconds No. So basically the the gross value of the deal is 210 and that's what we stated. 31:32 31 minutes, 32 seconds Uh there are basically certain uh I would say large deal related uh elements which basically makes it net and to that extent we called it out whatever 195. 31:43 31 minutes, 43 seconds But from your perspective and calculations, you can go ahead with 210 for now. Uh and that's the number that should you should keep it as a reference 31:52 31 minutes, 52 seconds point, right? Yeah. I mean, thanks for that. My my question actually was, you know, if I have to net up this 102 million uh with 210, uh we get about 192 million, right? 32:02 32 minutes, 2 seconds As against 180 million last year uh in the in the previous quarter. So is is is this cadence I mean is the environment 32:10 32 minutes, 10 seconds and your pursuit strong enough for you to maintain this cadence uh in in uh over the short term over the very short term next two three quarters. So the 32:19 32 minutes, 19 seconds overall order book, so if you if you're talk if you're commenting in terms of the order book excluding this large deal, 32:26 32 minutes, 26 seconds uh the order overall order book has been in line with what we have uh what we've been targeting and aiming at uh I would 32:33 32 minutes, 33 seconds say anything which is above 1.1% is uh somewhat uh acceptable and good uh which 32:40 32 minutes, 40 seconds gives which ensures that we that we have enough uh traction uh which is what it translates into. So I I would say 32:47 32 minutes, 47 seconds anything which is between 180 to 200 on a standard basis is is a reasonable number. 32:54 32 minutes, 54 seconds Got it. Got it. And and the scale up uh would that be about 9 to10 million starting Q2? I mean that that's what the calculation indicates. 33:01 33 minutes, 1 second We don't want to comment on that uh just now because you know it's uh at this stage uh we are uh essentially our focus is to scale up as quickly as possible. 33:13 33 minutes, 13 seconds So at this stage we wouldn't like to comment on it but um I would also like to say that from a pipeline perspective 33:22 33 minutes, 22 seconds we have been comfortable pretty much every quarter because us for us pipeline is generating new business has not been 33:31 33 minutes, 31 seconds too much of a problem. Our problem has been that uh the revenue attrition that uh is happening especially in TMT has 33:40 33 minutes, 40 seconds been hurting us uh quite a lot. So we continue to be uh positive about our 33:47 33 minutes, 47 seconds pipeline and our ability to uh get um uh uh new business from existing clients 33:56 33 minutes, 56 seconds and even to some extent new business from new clients. 34:00 34 minutes Right. And just on the question of attrition you know barring your uh you know your topmost client is the is there a degree of attrition in other TNT 34:07 34 minutes, 7 seconds customers as well or is this majorly related to the top brand? I think uh the most material uh is uh the most material 34:17 34 minutes, 17 seconds deterioration is there uh but otherwise you know it is uh it's business as usual otherwise I mean some accounts we will 34:26 34 minutes, 26 seconds add some accounts will go away it is more business as as usual um on the other side of things. 34:36 34 minutes, 36 seconds Sure. and and on the employee cost of you could please clarify uh how much of it was new deal related and how much of it was organic 34:44 34 minutes, 44 seconds sorry come again yeah so I was referring to uh you know this increase in your employee cost uh mean you did mention in your opening remarks that there was a bit of 34:52 34 minutes, 52 seconds upfronting of investment relating to the new deal I'm just trying to understand how much is organic and how much is new deal related the increase in your employee cost 35:01 35 minutes, 1 second no so employee cost uh I would say the addition on account of The new deal will 35:07 35 minutes, 7 seconds be somewhere close to around 0.5 to 6%. 35:16 35 minutes, 16 seconds Okay. And and uh does this go up in Q1 as well? That is does this go up sequentially in Q1 or does it you know 35:24 35 minutes, 24 seconds stabilize from here on? So it will it will go up. Uh so the cost around this deal will go up in Q1 and Q2 and that is 35:32 35 minutes, 32 seconds why in the beginning I had called out that as we ramp up during the transition time frame there will be some pressure 35:40 35 minutes, 40 seconds around margins uh but they will stabilize the moment basically we start clocking revenue and transition phase is over. 35:48 35 minutes, 48 seconds Got it. And uh the the expected cadence in Q1 and Q2 will be in the same ballpark.5 uh no difficult to triangulate and give 35:56 35 minutes, 56 seconds it to you now because as you as what we called out uh right now the objective is to scale up uh and difficult to give you an exact cost number around that today. 36:08 36 minutes, 8 seconds Okay just squeeze in one bookkeeping question. Expected tax rates for the whole of 27. 36:13 36 minutes, 13 seconds Uh so th this year uh this year has been good. uh we've basically kind of done well on ETR. Uh I would say while we 36:21 36 minutes, 21 seconds would not give an exact guidance I think normal corporate tax rate u plus minus.5% is a range to work with. 36:33 36 minutes, 33 seconds Okay. Thanks everyone. I'll be in touch. Thank you. 36:36 36 minutes, 36 seconds Thank you. We have next question from the line of NGN Purani from Enam Securities. Please go ahead. 36:46 36 minutes, 46 seconds Hi Manish. Hello sir. How are you? 36:50 36 minutes, 50 seconds Good. Good. Uh I want to understand from you uh your readiness to uh be in the uh 36:58 36 minutes, 58 seconds uh large EI deals meaning EIA deals are not large yet but whatever size they are 37:06 37 minutes, 6 seconds 5 million 10 million and in terms of people readiness and project readiness and the experience uh that you have uh 37:16 37 minutes, 16 seconds gained over a period of time uh is it enough for you to uh bid for a pure play 37:24 37 minutes, 24 seconds uh EI service and also if you can give uh the list of service lines you have developed 37:32 37 minutes, 32 seconds over time on the yeah so great questions as uh as always 37:39 37 minutes, 39 seconds uh sir uh I would say u on AI um we are very very very bullish okay I am 37:48 37 minutes, 48 seconds personally driving the effort along with my senior management team and Vijay, Pulkit, uh, Vive and others. 37:58 37 minutes, 58 seconds Uh, we are looking at all aspects of AI. 38:02 38 minutes, 2 seconds Uh, almost every service line that we have today. 38:08 38 minutes, 8 seconds We have rethought it and we have made it AI native rather than AI infused. 38:15 38 minutes, 15 seconds And uh this philosophy has uh percolated not just to uh our delivery and sales organization but also to our support 38:24 38 minutes, 24 seconds organizations in terms of finance, HR and everything. 38:29 38 minutes, 29 seconds 85% of our workforce 85% of our workforce is 38:35 38 minutes, 35 seconds AI enabled. So we are ready to uh we are ready to take advantage of that and and 38:44 38 minutes, 44 seconds uh not only we are ready to take advantage but we are taking proactive steps 38:51 38 minutes, 51 seconds uh to make sure that uh the benefits of AI are seen by our employees and also by 38:58 38 minutes, 58 seconds our uh clients. So um uh I believe that for companies uh of our size uh this is 39:07 39 minutes, 7 seconds the next uh turn in the road and uh as in Formula 1 they say that you always 39:14 39 minutes, 14 seconds win in the turns. So this is we believe that our uh we have to win this we have to win it. 39:23 39 minutes, 23 seconds M and how significant is AI usage within your organization both in finance, HR, 39:31 39 minutes, 31 seconds admin, you know, u project management everywhere. 39:36 39 minutes, 36 seconds Vive maybe you should answer that question. Kit is our CFO and Vive is our 39:44 39 minutes, 44 seconds thanks a lot sir. It's a brilliant question. In fact, just adding to what Manish mentioned, I am Vive I'm CHR of 39:50 39 minutes, 50 seconds Zen. So u one in fact we have invested uh significantly in the training of our people and as Manish mentioned 85% of 39:59 39 minutes, 59 seconds our employees are AI ready second uh from HF process perspective from pre- onboard to retire the there are various 40:08 40 minutes, 8 seconds touch points including hiring engaging developing our employees for each of these touch points we have identified 40:16 40 minutes, 16 seconds areas where we can bring in generative AI and agentic AI so for example our recruitment is completely AI enabled. So 40:24 40 minutes, 24 seconds each of these touch points we are also making it sure that we bring in AI to ensure that we are not only selling AI 40:31 40 minutes, 31 seconds to our customers we are role modeling that and infusing that in all of our processes. So that's from HR 40:38 40 minutes, 38 seconds perspective. Pulkit you want to add on that. 40:44 40 minutes, 44 seconds Yeah hello sir. So I think u I think good question in terms of how are we using it internally from a we may give you a perspective around HR from a 40:52 40 minutes, 52 seconds finance side I would say a lot of uh business process oriented functions uh 41:00 41 minutes say something like an ARP right we we are trying to basically infuse AI in those areas uh FPNA uh which is again u 41:10 41 minutes, 10 seconds based around data and uh how do we basically comprehend and use that data. 41:15 41 minutes, 15 seconds So we are using AI around that. Uh the third element is contracting contract uh when when when you look at legal contracts. Uh we have designed and using 41:25 41 minutes, 25 seconds in-house um agents who are basically helping us u helping us basically shorten the time frame of the entire 41:33 41 minutes, 33 seconds contracting. Um and the saving in terms of number of people who are deployed for this would be significant. 41:42 41 minutes, 42 seconds So what we have done uh an interesting uh thing that we have done is uh within our own support functions whether it is 41:50 41 minutes, 50 seconds HR whether it is finance uh we are hiring engineers as well who are uh uh who are who are only 41:59 41 minutes, 59 seconds focused on infusing AI into our processes in support very good that's a good good way to 42:07 42 minutes, 7 seconds introduce AI to the organizations Hello. 42:14 42 minutes, 14 seconds Yes. Yes sir. 42:15 42 minutes, 15 seconds Yeah. Can you can you also mention about the service lines you have developed cuz I want to understand from you for example if somebody says that I want to 42:24 42 minutes, 24 seconds spend $10 million on EI related invest projects with the entire organization. 42:30 42 minutes, 30 seconds So what service lines you think he should adapt you know for a $10 million project? Do you have enough services uh you know to deliver? 42:41 42 minutes, 41 seconds On a lighter note, we will create any service line that they want us to create for a $10 million project. But to answer your question more directly, 42:50 42 minutes, 50 seconds uh I think uh one is as I said we have reimagined all our services ground up using AI. 43:00 43 minutes Uh one of the key new offerings that we have launched is QI which is quality intelligence. Okay. 43:08 43 minutes, 8 seconds Quality intelligence is um is uh see what what is happening is as people you would have heard of V coding and so on. 43:18 43 minutes, 18 seconds So instead of writing people are uh giving prompts. So essentially you have to test against the 43:27 43 minutes, 27 seconds prompts not against the code. So you have to against intent not against functional requirements or functional spend. 43:36 43 minutes, 36 seconds So that is an example of a of a service which which we have launched and it can 43:43 43 minutes, 43 seconds easily become a $10 million service line. 43:47 43 minutes, 47 seconds uh in fact uh on couple of uh deals we are uh in we are bidding uh QI related 43:54 43 minutes, 54 seconds stuff in that range. So we have created many more but uh this is just a classical example of uh a service line. 44:04 44 minutes, 4 seconds H but do do you have any specific service lines like what you used to have in the traditional the ADM world you 44:11 44 minutes, 11 seconds know so quality intelligence is in the ADM world we call it ADM world it was known 44:19 44 minutes, 19 seconds as IVS or testing if you are referring to correct as you know I I started that uh business 44:27 44 minutes, 27 seconds correctly yeah I know that yeah and now I am starting quality intelligence here wow Interesting man. I also have to 44:35 44 minutes, 35 seconds understand from your mega deal how much of uh that mega deal will have productive 44:44 44 minutes, 44 seconds VI and and what percentage is predictive in terms of people processes and all. So 44:52 44 minutes, 52 seconds uh see uh while it is uh uh see bulk of it is uh it's both product first of all 44:59 44 minutes, 59 seconds it's both productive and predictive. M um so for example the transition 45:09 45 minutes, 9 seconds okay so and you will need a lot of prompt engineers there also uh no not really not really but there 45:17 45 minutes, 17 seconds are uh there are I mean I I'll have to spend uh you know a couple of hours explaining both the productive and 45:24 45 minutes, 24 seconds predictive uh part of it uh but uh I would uh maybe to do 45:33 45 minutes, 33 seconds uh maybe in our one-on- ones or so on maybe I'll we'll do that. 45:40 45 minutes, 40 seconds So but this is a significant uh uh investment AI would be in this project in in mega deal. 45:48 45 minutes, 48 seconds Sir u we would like to refrain from commenting on the Okay. Yeah. Understand. Yeah. Yeah. So if I may request everyone. 45:58 45 minutes, 58 seconds Sure. Sure. Yeah. Yeah. Yeah. Great. Thanks very Thanks Manish. Thank you. 46:04 46 minutes, 4 seconds Thank you sir. Thank you sir. Thank you. 46:09 46 minutes, 9 seconds We have next question from the line of grace by from BOP Capital Markets Limited. Please go ahead. 46:18 46 minutes, 18 seconds Yeah, thanks for the opportunity. uh I just want to understand what was the AI deflation impact in FY26 because you're 46:27 46 minutes, 27 seconds uh for the full year you you've grown at about 1.7% in constant currency terms and you have digital application services which forms almost like uh 75 46:36 46 minutes, 36 seconds 80% of your revenue which I suspect would see fair amount of deflation because of AI. So uh can you quantify 46:43 46 minutes, 43 seconds the deflationary impact in FI26 and what do you see happening in FI27 uh with all these new models dropping almost every 46:52 46 minutes, 52 seconds other week? Uh how do you see that deflation playing out in FI27? 46:57 46 minutes, 57 seconds So first of all uh we are slightly unique uh in that sense that we don't have too many annuity type of contracts 47:07 47 minutes, 7 seconds and that is one of the reasons where uh why um uh you know u we are uh we have 47:16 47 minutes, 16 seconds to literally uh earn our business and our clients trust quarter after quarter. 47:22 47 minutes, 22 seconds So we are not seeing so much of deflation because of the nature of work 47:29 47 minutes, 29 seconds that uh we are doing is not annuality uh annuality based and the newer projects 47:35 47 minutes, 35 seconds uh that uh we are going after I believe that uh it is making us much more competitive uh rather than looking at it 47:44 47 minutes, 44 seconds as uh deflation. So the lens that uh I am using to look at uh AI is uh is a 47:52 47 minutes, 52 seconds positive lens rather than uh focusing on the negative parts mainly because the 47:57 47 minutes, 57 seconds negative part is um not impacting us as much as far as our business is 48:05 48 minutes, 5 seconds concerned. But if the negative part is impacting our clients then it has an 48:13 48 minutes, 13 seconds impact on us. So as I mentioned um you know there are companies who have let go of 30,000 people if they are going 48:20 48 minutes, 20 seconds letting go of 30,000 of their own people imagine how many of the outsourced people must be going out. So that impact 48:29 48 minutes, 29 seconds is anyway uh anyway there and that is accounted for in the revenue attrition uh overall but we are not seeing yet 48:39 48 minutes, 39 seconds that we were doing a project for $100 and now because of AI we have to do the same project at $70. 48:48 48 minutes, 48 seconds Okay. um Manish in your opening remarks you mentioned uh I don't know maybe opening remarks or elsewhere you mentioned about uh 48:57 48 minutes, 57 seconds uh you know um larger companies tier one companies bidding for some of the projects which they never used to do previously or at least you didn't see 49:05 49 minutes, 5 seconds them do that a few months back uh against tier one competition in these projects uh what is our right to win or 49:12 49 minutes, 12 seconds why do you think we should win some of those contracts so I would Okay, one is uh one is our AI 49:22 49 minutes, 22 seconds native offerings are making an impact number one. Number two, as you see that our customer satisfaction and our 49:31 49 minutes, 31 seconds employee satisfaction is uh is really excellent. Okay. uh and I have said this 49:38 49 minutes, 38 seconds before that ultimately I run a very simple business where if you take care of your clients and if you take care of your employees then things should be 49:47 49 minutes, 47 seconds good. Uh so that is the second uh this thing. Um and the third I would say is 49:55 49 minutes, 55 seconds while a heavy car has momentum a lighter car is more u more uh uh agile and more 50:04 50 minutes, 4 seconds maneuverable. And this is the time for uh maneuverability rather than momentum. 50:09 50 minutes, 9 seconds So I would say those are the three reasons that uh we can we can claim. 50:19 50 minutes, 19 seconds Okay. My last uh question is uh are you seeing any uh rise of new players in the market? Are you because now you don't 50:26 50 minutes, 26 seconds require those thousands of employees uh to deliver a project. Uh so are you seeing uh newer players coming into the market or do you think it's well too 50:35 50 minutes, 35 seconds early maybe that that phenomenon is going to pick up maybe uh 6 months or 12 months down the road? 50:42 50 minutes, 42 seconds See I would say the newer players uh see the industry attractiveness um newer players coming in is when the 50:51 50 minutes, 51 seconds industry attractiveness is high and the margins are uh margins are higher. both as you know have been uh declining relatively for the industry as a whole. 51:04 51 minutes, 4 seconds So we are not really seeing uh new boutique firms and anyway these boutique firms are one or two account wonders 51:13 51 minutes, 13 seconds usually. So we are not seeing too many of uh of those uh entrance of new new 51:20 51 minutes, 20 seconds competitors uh per se um uh because you know the attractiveness of the industry has come down over a period of time. 51:31 51 minutes, 31 seconds Yeah. Lastly, uh is decision making pushed back because of either macro concerns or because of AI related uh 51:39 51 minutes, 39 seconds issues in the sense that the clients think that you're going to get more from the same vendors maybe 3 months down the road or 6 months down the road. So is decision making impacting um deal flow? 51:52 51 minutes, 52 seconds Yeah, I am I have no perview of client decision making cycles to be honest with you. I would say uh uh you know I'm not 52:02 52 minutes, 2 seconds seeing that same client taking who was taking a decision in 6 months uh is now taking 9 months for the 52:09 52 minutes, 9 seconds decision. It has more to do with the culture of the client rather than on the macro situation. Macro situation uh is 52:19 52 minutes, 19 seconds impacting the overall budgets. Uh AI um also is impacting the budgets. uh but uh 52:27 52 minutes, 27 seconds you know I am not the right guy to comment on decision making cycles per se. It's a very intimate thing that you 52:35 52 minutes, 35 seconds have to look at uh for each client and figure out uh whether culturally they have become more cautious or or not. 52:47 52 minutes, 47 seconds Okay. Thank you. 52:50 52 minutes, 50 seconds Thank you. We have next question from the line of panka ziranis investment managers. Please go ahead sir. 52:59 52 minutes, 59 seconds Hi this is pankage maka here. Um Manish you mentioned uh on the call about this 53:06 53 minutes, 6 seconds layoffs by tech companies including Oracle and Snap and now in the last few days that has only accentuated because we've seen something similar from Meta 53:15 53 minutes, 15 seconds and Microsoft as well. So if you can share some more industry perspective as to what is driving that u uh you know is it these companies are reaping AI 53:24 53 minutes, 24 seconds efficiency gains and which is what it is leading to or what's the trend that's playing out there and if that be the 53:31 53 minutes, 31 seconds case mean is it next few quarters or you think it's a slightly more medium-term trend that's the first question and also in that context sorry just to 53:40 53 minutes, 40 seconds compare also in that context what it means for where does our business from that segment stabilize 53:47 53 minutes, 47 seconds No, no. So, see we have to uh see first of all there is some amount of AI 53:54 53 minutes, 54 seconds washing happening. Okay. Uh second is uh uh if you have to buy if you have to 54:03 54 minutes, 3 seconds make capital investments worth uh hundreds of billions of dollars that money has to come from somewhere. 54:10 54 minutes, 10 seconds And uh uh one way that uh money is being generated is by letting go of uh people 54:17 54 minutes, 17 seconds who are not adding full value or or whatever. So uh one uh as I said it's 54:24 54 minutes, 24 seconds the capital investment that these companies have to make uh which forces them to cut costs and the second is u second is some amount of AI washing etc. 54:36 54 minutes, 36 seconds uh that is that is happening. The um answer for us is uh you know we have to 54:45 54 minutes, 45 seconds use AI to expand the addressable market um uh much more and you know for example 54:54 54 minutes, 54 seconds we are not a BO company but um we are using AI to go after some of that uh 55:01 55 minutes, 1 second some of that traditional BO business because our proposition is you know what you're doing with 200 people. I can do 55:09 55 minutes, 9 seconds it with 50 people and 150 agents, EI agents. And uh by the way, because we 55:17 55 minutes, 17 seconds are doing it uh uh ourselves, uh we can assure you those 55:40 55 minutes, 40 seconds measurement line has been disconnected. 55:42 55 minutes, 42 seconds We are quickly reconnecting a measurement line. Please hold the line. 56:00 56 minutes Heat. Heat. 56:52 56 minutes, 52 seconds participants. Thank you for the patience. We have management 9 reconnected. 57:00 57 minutes All right. Uh is there something that we need to answer? 57:05 57 minutes, 5 seconds Uh because we got disconnected so that's why. 57:08 57 minutes, 8 seconds Yeah. Uh we could only hear partly your answer to the question. So if you could answer that if you can repeat the question please. 57:18 57 minutes, 18 seconds I was saying uh uh we were talking about you know uh on the TMT side we've seen acceleration of uh layoffs from likes of Microsoft and Meta as well now. 57:29 57 minutes, 29 seconds Okay. Okay. So where did we lose you? At what point did we lose you? 57:34 57 minutes, 34 seconds No, you were mentioning that uh essentially companies have to reap those benefits to fund their AI capex. 57:40 57 minutes, 40 seconds Okay. So you lost us very early in the cycle. Okay. 57:45 57 minutes, 45 seconds So uh so the the the issue is that uh they have to fund the capex and uh that 57:52 57 minutes, 52 seconds is number one and number two um I and this could be my personal view that uh the these companies had overhired in the 58:01 58 minutes, 1 second postcoid uh boom and uh hence they are working uh on reducing the excess uh fat 58:11 58 minutes, 11 seconds if I may say so and some amount of AI washing uh is also is also happening. Uh 58:19 58 minutes, 19 seconds the answer to the second part of your question is what should companies be doing? I would say that u what we are 58:26 58 minutes, 26 seconds doing is trying to go after uh increase our addressable market and u increasing 58:33 58 minutes, 33 seconds our addressible market we can do it today because of uh because of AI and uh that means getting out of our comfort 58:42 58 minutes, 42 seconds zones which is just the CIO organization and moving to adjacent organizations that spend a lot of money on technology 58:51 58 minutes, 51 seconds including uh CMO content organization, BPO or operations, uh HR, uh finance, etc. 59:02 59 minutes, 2 seconds So that would be our uh response to this market. 59:08 59 minutes, 8 seconds And uh uh the other question was where does where do we see this stabilize for us given the fact that we continue to face headwinds here on this side of the business? 59:19 59 minutes, 19 seconds That is a that's a very important question. I wish I knew the answer to uh but uh I can I 59:27 59 minutes, 27 seconds can tell you that um you know we our aim is uh uh our aim is to make sure that we 59:36 59 minutes, 36 seconds continue to grow and create value for our shareholders uh despite the headwinds. Sometimes when 59:44 59 minutes, 44 seconds we are not able to create value through revenue growth, we create value still create value through EPS growth uh 59:53 59 minutes, 53 seconds through uh profitable profitability and uh so on. Uh but the focus is on 1:00:00 1 hour creating shareholder value quarter after quarter. 1:00:05 1 hour, 5 seconds Sure that's helpful. And one last thing uh uh when we uh meaning uh you highlighted that uh you seen uh very 1:00:13 1 hour, 13 seconds high level of competitive intensity which is industrywide phenomena and you're seeing let's say in some of your accounts uh tier one companies which you would have not otherwise seen meaning uh 1:00:22 1 hour, 22 seconds what's your take from where you uh you're sitting and as you foresee things how long do you think this competive intensity probably might just persist or 1:00:30 1 hour, 30 seconds do you think that persistent throughout the course of the year this year or how would you think uh this whole phenomena plays 1:00:37 1 hour, 37 seconds Till the situation with AI stabilizes, this will continue to be see you know 1:00:44 1 hour, 44 seconds competitive intensity is a is a um is a function of the changes happening in the 1:00:53 1 hour, 53 seconds environment and uh lot of changes are happening in the environment in terms of introduction of a new technology um which is AI. 1:01:04 1 hour, 1 minute, 4 seconds uh so till this situation uh around AI stabilizes a little bit we will continue 1:01:11 1 hour, 1 minute, 11 seconds to see increased competitive intensity because uh the the market size is not 1:01:18 1 hour, 1 minute, 18 seconds increasing dramatically uh right unlike previous technologies where uh be it digital be it uh internet uh be it 1:01:27 1 hour, 1 minute, 27 seconds mobile be it cloud uh the market size increased but with AI um the market size 1:01:35 1 hour, 1 minute, 35 seconds is not increasing uh with services at least in services it might be uh increasing um on spends on LLMs and 1:01:44 1 hour, 1 minute, 44 seconds tokens and so on but it is not increasing on the services side uh so this uh competitive intensity uh we 1:01:52 1 hour, 1 minute, 52 seconds should learn to live with it till the situation with AI stabilizer so thank you thank you that's very 1:02:00 1 hour, 2 minutes helpful thank you we take the last question from the line of Mr. Sep please go ahead. 1:02:12 1 hour, 2 minutes, 12 seconds Yeah thanks thanks for the second question opportunity. Uh this question is on margin. So we generally do we 1:02:20 1 hour, 2 minutes, 20 seconds trade 14 to 16 as a comfortable band while 4q is at the upper end of the band and we understand there would be a large 1:02:28 1 hour, 2 minutes, 28 seconds transition cost in the first half. So Pulkit is it fair to assume 1416 as a 1:02:35 1 hour, 2 minutes, 35 seconds full year would also be true for the upcoming year FY27. 1:02:42 1 hour, 2 minutes, 42 seconds So I I would say yeah mid- teens is something which we have always maintained. We would like to continue with that uh uh overall guidance uh for 1:02:50 1 hour, 2 minutes, 50 seconds the year. There may be a quarter where it can basically vary slightly but that's how we are looking at uh FI27 as a whole. Yeah. 1:03:00 1 hour, 3 minutes Okay. and like what I have al also maintained is that basically uh there's a trade-off 1:03:08 1 hour, 3 minutes, 8 seconds from a growth and a margin perspective and while from a long-term perspective your question is very fair and we should 1:03:15 1 hour, 3 minutes, 15 seconds and as I said long-term we will stay in this guided range there may be blips which I can't call out today but if 1:03:23 1 hour, 3 minutes, 23 seconds there are then the the trade-off around that will be for growth okay and just the Last question uh in 1:03:31 1 hour, 3 minutes, 31 seconds terms of margin in this quarter more than 100 bits or closer to 100 bits has been defined as a large deal transition 1:03:39 1 hour, 3 minutes, 39 seconds cost and investment. So can you also believe those transition cost is already 1:03:46 1 hour, 3 minutes, 46 seconds captured for the mega deal in the fourth quarter number. 1:03:50 1 hour, 3 minutes, 50 seconds Not at all. Not at all. Uh there's only a very small part. So uh the cost that I spoke about uh while I kind of mentioned 1:03:58 1 hour, 3 minutes, 58 seconds it uh uh please do not get anchored that this is all the cost which has come into it and I would like to reiterate that as 1:04:07 1 hour, 4 minutes, 7 seconds we go into the transition phase these costs will increase. the the one which I mentioned is that in the planning 1:04:15 1 hour, 4 minutes, 15 seconds process right once we we got a uh uh I would say some certaintity that there is a chance of getting in there we started 1:04:23 1 hour, 4 minutes, 23 seconds planning ahead of time we started hiring ahead of time we started investing ahead of time but these are very very minuscule costs which have come in now 1:04:31 1 hour, 4 minutes, 31 seconds the large part of these costs will come in Q1 and Q2 okay and last question if I can squeeze in man outside the client in PMT. 1:04:42 1 hour, 4 minutes, 42 seconds I just want to make it clear. Hello. Can you hear me? Yeah. Yeah. Yeah. Yeah. 1:04:47 1 hour, 4 minutes, 47 seconds I just want to make it amply clear that do not assume that all the cost with regards to this has come in this quarter. That is not the case at all. 1:04:56 1 hour, 4 minutes, 56 seconds Yeah. Got it. Got it. And just the last question Manish, if I can squeeze in uh except for the top client in TMT, is 1:05:04 1 hour, 5 minutes, 4 seconds there any other large specific client related issue in other sectors or in TNT? 1:05:11 1 hour, 5 minutes, 11 seconds As I mentioned before, I mean this is see other clients small ups and downs uh will will happen uh you know which is 1:05:19 1 hour, 5 minutes, 19 seconds business as usual which we plan for we plan for certain amount of revenue attrition and so on. So uh as I 1:05:29 1 hour, 5 minutes, 29 seconds mentioned uh in last call also there have been couple of uh you know consolidation plays that have happened against us in healthcare and life 1:05:37 1 hour, 5 minutes, 37 seconds sciences but uh you know that is those kind of things are to be expected. So we 1:05:45 1 hour, 5 minutes, 45 seconds we are ready for for those kind of things and that volatile uh loss in the 1:05:52 1 hour, 5 minutes, 52 seconds healthcare will that impact in the coming year or the impact is already reflected in the FY26 1:06:01 1 hour, 6 minutes, 1 second the impact no actually FI26 healthcare and life sciences actually has grown by 8.6%. 1:06:08 1 hour, 6 minutes, 8 seconds While uh for uh FI27 we are hoping that we can remain we can 1:06:16 1 hour, 6 minutes, 16 seconds remain at least flat in healthcare life sciences. Okay. Okay. Thanks and all the best. 1:06:27 1 hour, 6 minutes, 27 seconds Thank you ladies and gentlemen. 1:06:30 1 hour, 6 minutes, 30 seconds I now had conference over to Mr. Manish Tandan for closing comments. 1:06:36 1 hour, 6 minutes, 36 seconds Yeah. Thank you everyone for being on this call. Um before we conclude I want to reiterate my gratitude. Uh first of 1:06:43 1 hour, 6 minutes, 43 seconds all as always to our clients for their continued trust to all Zensarians for their unwavering dedication and to our 1:06:51 1 hour, 6 minutes, 51 seconds shareholders for their confidence and support. In summary, while the demand environment remains fixed mixed, our 1:06:59 1 hour, 6 minutes, 59 seconds annualized revenue growth, significant margin expansion, healthy order book, and robust cash position collectively 1:07:06 1 hour, 7 minutes, 6 seconds reinforces our confidence in the path ahead. As we move into FI27, our priorities remain clear. Maintain 1:07:15 1 hour, 7 minutes, 15 seconds disciplined execution, deepen the value we deliver to clients, and continue advancing our AI native capabilities. 1:07:24 1 hour, 7 minutes, 24 seconds Thanks you once. Thank you once again for taking the time to join Zensar's Q4 and FI26 1:07:30 1 hour, 7 minutes, 30 seconds earnings call. Thank you very much participants on behalf of MK Global Financial Services. That concludes this 1:07:39 1 hour, 7 minutes, 39 seconds conference. Thank you for joining us and you now distract your lines. Thank you.