Latent View Analytics (NSE:LATENTVIEW) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Latent View Analytics Limited Q1 FY 'twenty seven Earnings Conference Call. 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 concludes. Please note that this conference is being recorded. I would now like to hand the conference over to Ms. Asha Gupta from E and Y Investor Relations. Thank you, and over to you, ma'am. Thank you, Alrik. Good morning, everyone, and welcome to q one FY twenty seven earnings call of Latent View Analytics Limited.

0:49 The results and presentation have already been mailed to you, and you can view that on the website, www.latentview.com. In case anyone does not have the copy of press release and presentation or you're not marked in the mail, please do write to us, and we will be happy to send you the same. To take us through the results today and to answer your questions, we have with us the CEO of the company, Sonal Ramrakhania the strategic adviser to the CEO, Rajan Sethuraman, to whom we will be referring as Rajan and the CFO of the company, Rajan Venkateshin, to whom we will be referring as Raj. This is just to avoid the confusion while doing the transcript. We will start the call with Sonal, who will be giving you the brief introduction about herself.

1:36 Rajan will then be share the business update, which will be then followed by Raj, who will take you through the financial performance. After the management remarks, we will open the floor for q and a session. As usual, I would like to remind you that anything that is mentioned on the call that reflects any outlook for the future or which can be construed as forward looking statements must be viewed in conjunction with the risks and uncertainties that we face. These risks and uncertainties are limited, but not... Are included, but not limited to what we have mentioned in the prospectus filed with SETI and subsequent annual report that you can find on our website. Having said that, I will now hand over the floor to management. Over to you, Sonal. Thank you so much, Asha, and good morning, everybody. Truly a pleasure to connect with everybody today.

2:27 I'll give you a quick introduction. But before I do that, let me just express my excitement to be joining Latent View at what is clearly an inflection point in both the company's journey and the broader AI and analytics industry. For the last twenty five odd years, I've had the opportunity to work across various technology, engineering, and business transformation roles globally. Most recently, my last role, I was leading Wipro engineering for The Americas. And prior to that, I spent over twenty four years with the Tata Group as part of the task of the Tata Administrative Service, and I've held various leadership roles within the Tata Group, including with Tata Technologies and TCS.

3:14 What attracted me to join Latent View is, you know, the depth of the relationships that we have with customers, the strength of the logos that we have, but also very importantly, the deep expertise in analytics and a significant opportunity to create value, especially as AI reshapes businesses across industry. We are seeing the transformation day in and day out, and I'm very excited to be joining at this point of time. LATENview has built a very, very strong foundation over the last few years, supported, of course, by the depth of our relationships, the differentiated capabilities, and a culture of entrepreneurship and a can do attitude. Having joined only a few days ago, my immediate focus is very simple. You know, I'm listening. I'm learning. I'm engaging.

4:08 But over the coming few months, I will continue to spend time with our clients, with our employees, our partners, and, of course, our investors as I look at what needs to be done and to better understand what makes Latent View special. We will, of course, be doubling down on our execution. Fundamentally, the strategic tenets of strong, it is more a focus on execution and making sure that we deliver stronger and deeper to whatever we want to do as far as our customers and our stakeholders are concerned. While it's still early for me to comment on long term strategic priorities, it's very, very clear for me that the teams that we have and the depth of the capabilities that we have represent a very strong foundation for Latent View to grow further.

5:02 It's clear that we are operating at a pivotal moment in the industry. The convergence of data analytics, AI is con... Is creating and will continue to create significant opportunities, which we are looking at leveraging actively. There is significant transformation possible for our customers, businesses globally, and Latent View is, of course, well positioned to help clients navigate this transformation. I'm looking forward to working closely with our teams globally and building on very strong foundation that Rajan, Raj, and the leadership team have created. With that said, I look forward, of course, to engaging with many of you in the coming quarters. Lots more that we will be sharing as we progress down the year. And with that, over to you, Rajan.

5:53 Yeah. Thank you, Sonal. I'm going to talk about four points broadly, and and this is in relation to maybe some of the questions and, you know, points of interest that you all might have. So the first point I want to talk about was our consumer goods practice. You would have seen that there is shrinkage there in comparison to the quarter four of last year. I just want to give some color around that. You would recall that we had acquired DecisionPoint couple of years back, and we have been in the process of integrating all the work that they do and then also exploiting the synergy benefits that come out of it. Decision point is interesting in the sense that a lot of the work that they do, the contracting is done in a fixed fee fixed scope model where there are specific projects with specific deliverables and milestones.

6:54 And the nature of the business is such that these are not in a managed services construct where there's an automatic renewal, there is new work to be found in many instances. Of course, have had very strong traction with many of the clients that DecisionPoint works with and we continue to see that traction as well. But there will be instances where projects that we are pursuing take a bit more time to come through and realize. We did have multiple one off engagements that we witnessed in quarter four, which either didn't get extended in quarter one or that we are still working through what is next in that particular area. So largely that is the reason for the depth that you see in the consumer goods practice. But having said that, we do see a very strong uptick happening even in the next quarter.

7:49 I was taking a look at our pipeline and our confirmed opportunities and the quarter on quarter growth itself should be back to 25% plus in the next quarter within the consumer goods practice itself. In addition to that, we also have a fairly large number of extensions that are in play totaling to about 2,000,000 and there is a very large pipeline of opportunities that we are pursuing, close to 26,000,000 in opportunities, of course, at various stages, but we will need to convert them and then we'll need to move forward with them. This quarter also saw the addition of one new logo in the consumer goods space and we do see expansion opportunities in several of the accounts that we are already working with in the food and beverage space as well as in apparel and in other areas.

8:42 So overall, I would say that while the is significant in this quarter, we do see a significant coming back in the next quarter. Of course, we'll be able to provide more guidance in terms of how the entire year will turn out for us as we keep executing on on the strategy. The second point I want to talk about is the tech practice that we have. And you all would recall that the tech practice has witnessed a certain amount of consolidation and insourcing in one of our accounts. And that has been a bit of a drag in the last couple of quarters. Quarter one of this year was the final quarter in which some of that effect was felt in full.

9:28 And therefore there has been a bit of a contraction in that account. But overall, we were still able to show positive growth of close to 4%, right, in the technology practice in comparison to the previous quarter. Also as we speak, there is a fairly large amount of extension opportunities that we are pursuing and then there is another $15,000,000 plus in the pipeline, which we feel will add to the overall numbers for this year. Again, if I look at the quarterly trajectory, even in the account where we experienced some contraction due to the consolidation and in sourcing, I'm expecting that there will be a bounce back in that account. Maybe a short one, but a small amount, but nevertheless getting back to a more positive trajectory in that account itself. And overall, the tech space also should continue to grow for us from from here on.

10:24 Overall, taking all of this into account, the tech practice should have growth in this year. We will provide more color on what percentage growth we will be able to project at the end of the next quarter. But as I pointed out in quarter one, we have seen a Q on Q growth of about 4%. In the one account where the consolidation and all of that happened, we are seeing a large number of green shoots in terms of opportunities and many of them in areas of business which are dominant for that client in the cloud space, in the platform that they have for the apps that they are able to disseminate through their platform and also in one of their enablement functions, their finance function, there is a fairly strong traction and we won a fairly large engagement which we are now executing. So overall, we feel confident that even in this account, there should be a more positive trajectory, right, that we're able to talk about in the coming quarters.

11:29 The third point, I just want to give some color on the overall demand trend. This quarter saw the addition of six new accounts cutting across financial services and also in auto auto components. The one that we are particularly excited about is the work that we are starting to do for a client in the AI data center infrastructure space where we are going to be supporting them with analytics that helps them understand the performance of their data centers. And and this means all the metrics that everybody is these days bothered about now in terms of energy consumption and cooling and so on. We are getting started with a few of them, but this is something that could be potentially relevant for several organizations that are investing a significant amount of money in building up the infrastructure that is needed for the AI space.

12:21 We also have a fairly healthy pipeline cutting across financial services, healthcare, payer space, consumer goods. There is an opportunity that we are on the verge of signing with one of the largest SaaS companies in tech space and we are seeing good expansion in retail and marketplaces in automotive and overall in the technology sector as well. With all of that, we are expecting that Q2 will be a bounce back in terms of the quarter on quarter trajectory. Of course, we will give better indication as we wrap up the second quarter. But in general, at this time, is good confidence that there will be a fairly strong bounce back in quarter two. And overall for the entire year as well, based on the opportunities that we currently see in the pipeline, We are still retaining our earlier confident guidance that we had given, right, in terms of 12% growth.

13:18 Of course, there are several things in the pipeline. And if those things come through, then the growth should be stronger than what we have talked about earlier. Some color in general in terms of what we are witnessing in the industry in terms of spending patterns and decision making. There is some urgency definitely now with at least initiatives that are more AI led that are in pain points and opportunity areas that are reasonably well understood and established and confidence that an AI led approach whether it is agentic or generator AI will be the tipping point right in terms of improving on efficiency, effectiveness and velocity metrics. So we are seeing about 15 plus opportunities that have been generated on the back of AI led prototypes and solutioning that we have done. And that gives us confidence that the AI momentum will continue, right, and that should contribute to the overall demand trend.

14:16 Also at this point in time, are at least 14 plus opportunities that we are pursuing where if they materialize, we would get close to a $05,000,000 revenues in each of them, right, the current year itself. So there is enough large opportunities, there is momentum and there is urgency of course. There is still a lot of execution that needs to be done in terms of converting those opportunities. The final point I wanted to talk about is give a little bit more color of the AI work that we are doing and in general what is happening in the space. But even before I talk about some numbers and the trends, I just want to explain how we look at AI revenue. We we define AI revenue into two broad categories. One that we call primary AI revenue where the definition pretty much is that we are building an AI solution. Right? It could be a traditional AI.

15:12 It could be a generator AI or an agent AI solution, but the AI nature of the solution is visible directly, right, in the eyes and the hands of the customers. And and what we deliver to them is something that they can directly interact with using an AI interface. Now AI led into... Either an agent to interface or a generative interface. And and that is what we call primary AI. Secondary AI, you know, our definition is all the work that we do that leverages AI for improving our efficiency and productivity so that we are able to execute the work faster and with less effort, translating, of course, directly into benefits for clients in terms of the time that is taken to do the work, the effort that is taken to the work do the work, and of course, the cost aspect.

15:59 So last year, if you recall, we had reported that for the full year for FY '26, we we had about half of our work, which we're getting impacted in... By AI in a positive manner. And 28% of that work was primary AI work, right, for the last year. We are happy to see that there is an uptick on both those metrics in quarter one of this year. This quarter when we did the the math, we saw that about 80% of all the work that we do as an AI elementary data primary or secondary. And about 35% of the work that we have done in the first quarter is all primary AI work, where we have delivered an AI solution, right, in the hands of client. And we are expecting that this trend will only continue.

16:47 Several areas where the AI led solutioning and the AI impact is felt, right, starting with customer journey analytics and prediction, content generation, and dissemination, right, for the marketing teams within our client organization. Migration of data, legacy modernization, right, where data engineering flows are being architected as well as executed using agentic workflows. Process scheduling, right, of jobs that has a direct impact on memory, computing, elapsed time, and how all of these can be optimized using an agentic flow. And in general, multi several multi agent orchestration in relation to dashboards, reports and dissemination of diagnostic analytics analytics and insights that come out of it. So this is a fairly strong trend that we are seeing. Many of these are now emerging to be reasonably well understood and established areas.

17:38 And therefore, we are expecting that the AI trend in terms of the nature of the work that we'll do will only continue. A few other things that we are seeing as trends in the broad market, you all would have started already hearing the term forward deployed engineers in significant measure. We are starting to see that as well with several of our accounts in the financial services, in the tech space, the expectation is that our forward deployed engineers will be able to sit with our clients and directly iterate and create solutions that can actually address the problem in a very imminent fashion with the lowest amount of turnaround time that is possible. So we are switching to the power deployed in training model also in in many of those areas with the requested skills, capability, expertise, certification, domain understanding, and all of that draft into that model.

18:30 A second trend that we are seeing is that more and more of our clients want to do their AI work within their walled garden. What I mean by that is not heavily rely only on the open AIs and the anthropic models. Because in some sense, if you're exposing all of your culture and your context and your data, then there is very less that remains as competitive advantage. So there is a tendency on the part of many of the large enterprises and even some smaller enterprises that they would want to keep all of these within within their walled garden and bring more neutral model, open source models right into the picture. So that the culture context and the secret sauce and the competitive advantage is free time. So that will mean that you're able to build rack systems, semantic layers, knowledge graphs, which actually will retain all of that context within the enterprise and still be able to deliver the benefit and impact of artificial intelligence.

19:27 We are also seeing that the whole AI play has to cut across the full stack of AI infrastructure, LLMs, large language models and the data platform. In some sense, this means that our own partnership has to be with the likes of an NVIDIA that brings the best... Or or a Google, for example, that brings their best graphical processing units and tensor processing units straight into the mix. The likes of an OpenAI and Anthropic and other open source models that are available from a modeling perspective, model perspective, and then also with the Databricks and Snowflake, for example, right, from a data platform perspective. So this is something that we are looking at executing as well, right, in terms of how we connect across this entire stack. Finally, we are also seeing that as we build agents and we are designing them in a very competent fashion with all the aspects around how do how do they operate within that walled garden concept that I mentioned, but also retain very strong fundamentals around observability, transparency, lack of hallucination, governance, God raise.

20:35 It'll be a good idea to bring all of these together into into an agent foundry of sorts, right, which is available to us as a platform, which then can be leveraged across clients, across the different work that we do so that we don't have to keep reinventing all of that. Internally, are accelerating all of the learning and development and certifications. In fact, this week, there is a large anthropic certification program that's underway on about more than 200 of our people have signed up for the certifications. We are already a recognized partner by Anthropic as well as OpenAI, and we'll be accelerating the program right as we move forward. Finally, we are also doubling down in terms of our structure, how we organize ourselves. One big change that we'll be implementing will be the creation of chief technology and AI officer organization.

21:27 This team will bring together our AI products, our agents, our agent foundry, the partnerships and alliances that we have that I talked about, and our service delivery excellence team as well into one overall center of excellence, right, that can actually work with our business groups. The AI leads that we have in our individual business groups and industry facing teams across technology, financial services, health care, life sciences, and the consumer ecosystem, and focus on building industry specific solutions, creating the delivery bandwidth and the engine with the necessary skills and capabilities, and then also act on the go to market opportunities that are available. The final point I wanted to make with respect to AI is on the question about AI led productivity. Right? Whether it is retained by us, you is there a margin impact? Right? Is it all being passed back to the clients? At this point in time, given that much of our work is in a managed services construct, a lot of the productivity benefits and the efficiency benefits do accrue to the client. But I did touch upon the work that efficient point us, for example, earlier. Right?

22:33 While while there is shrinkage when when you're not in a managed services model, there there can be unexpected shrinkages. But a model where you are contracting based on outcomes or deliverables and milestones in a fixed fee fixed scope model that would allow us to rethink more of the productivity and efficiency benefits that that would come through the adoption of AI led approaches. This is something that we are clear on and internally there is a mandate and the metrics... Set of metrics that we are looking at in terms of how can we incentivize our project teams and our go to market teams, right, in terms of moving more to a scope deliverables milestone based model. We will obviously be sharing more of this in terms of how this pans out for us, right, over the over the coming quarters.

23:21 Finally, this foundry platform that we are creating that could potentially allow us to price our agents as well in the mix and not just price the people that we are able to deploy, but potentially, you know, there could be a pricing that we come up with with agents for us. So overall, I think the momentum is very strong. We are making the right moves in terms of prepping ourselves, right, for this AI led evolution that is happening. And we expect that we'll be able to report even more positive results, right, going forward. With that, I'll hand it back to Raj to touch upon the financial aspects of the last quarter and also certain other the overall indicators. Thank you. Thank you, Rajan. Good morning, everyone, and thank you, Sonal, as well.

24:11 Let me now quickly give you a brief about the financial performance for this quarter before we move into Q and A. So for the first quarter, in rupee terms, our revenue stood at about INR $2.87 crores, which reflects a growth of about 21.6% on a Y o Y basis. However, on a Q o Q basis, we had a marginal decline of about 0.6% in rupee terms. If you look at the dollar revenue for the quarter on a sequential basis, our dollar revenues came in at about 30,300,000 Sequentially, was a shrinkage of about 3.5%. You would all recollect that, and in fact, the guidance also that we had put out just before the quarter was our dollar revenues were expected to shrink between one and a half to 2%.

25:04 But in reality, the shrinkage was was a little more than anticipated. Rajan also had already briefly touched upon the fact that there were a few one off projects that we had executed in the CPG practice, specifically the addition point entity, where what we did realize was there was follow on work that we had anticipated on the back of some of these one off projects, which did not really transpire, as well as there was also extensions that were supposed to come in, which I think there was a delay in securing some of those extensions. So because of which the revenue realization within the CPGR practice for this quarter was lower than anticipated. We also spoke about the specific in sourcing headwind that we had with one large tech account.

25:57 The additional color that I would like to provide was while while while we did give this news of of of the in sourcing happening in the last quarter itself, the last quarter still did have the benefit of one month of revenue. So the the in sourcing happened sometime towards the end of January. So we still had revenues for one month in the last quarter. The full impact of that in sourcing was was was was reflected in the in the in the current quarter. Right? And so that resulted in an impact of about 500 for this particular quarter. The third one is a client specific discount that we also had to provide for... In the in the BFSI space. So this is you would all recollect that in the last year, we acquired a client where the growth has been fairly spectacular or this was a client that we acquired in February of last year.

26:52 But towards the end of this fiscal year, we were already at a run rate of close to about $10,000,000 annually, right? And therefore, we had a specific request from the client to provide volume discounts given the surge in the overall procurement from LATENTVIEW. And there were one time discounts that were agreed as part of the negotiations with the procurement team of of this organization, and that impact was also reflected in the current quarter. Right? So I would say this would be the primary reasons as to why sequentially there was a degrowth of about three and a half percent. Of course, we're very happy that despite these headwinds that we witnessed, there was very strong execution in the financial services practice. Our TMT practice also on a sequential basis grew by about 4%.

27:46 Right? So through which we were largely able to offset the softness that we witnessed in the CPG practice. I'm going to talk a little bit about, you know, the geography split also. You would have all noted that for the current quarter, our revenues from the rest of the world, again, has gone down sequentially in comparison to the previous quarter. These again are related to the CPG practice because Latin America and Europe are key markets for our CPG practice and some of the one time projects that we did execute for clients emanated from these regions. But just to add a little more color on that, I think there are, like Rajin said, there are enough, I would say, opportunities in the pipeline that we are fairly confident that we should be able to close and secure in the coming quarters, which will reflect in a fairly healthy bounce back in the CPGI practice as well as the geographic contribution from Europe and LatAm in the coming quarters.

28:50 I'm going to touch a little bit about the margin for this quarter. The adjusted EBITDA for this quarter came in at about INR 58.6 crores, reflecting an adjusted EBITDA margin of 20.4%. You would all recollect that typically Q1 is the quarter in which we do grade revisions. And we did rate revisions for close to about 70% of our entire workforce in this particular quarter. The impact of this on our overall margins was close to about 2.7%. On an average, the wage hikes were in the range of about 8% for the entire organization. Of course, there was an impact of the revenue shrinkage or the lower revenue, and that contributed about negative 1% of the decline.

29:40 The current quarter also had seasonally high visa costs as well as marketing costs that did impact the overall EBITDA margins, but we also had lower travel costs, which to some extent offset the shrinkage as a result of the base as well as lower revenue. Net net, I think a few of the things that I would also want to highlight is we will continue to sort of look for opportunities to deploy the capital, whether it's in the form of, you know, partnerships, whether it's in the form of leadership hiring, whether it's in the form of m and a. M and a, again, you know, there is, I would say, the organization, there is a fair bit of momentum. We've we've been looking at several opportunities, specifically in the data engineering as well as the life sciences space.

30:30 Hopefully, we should have some news on that front in the in the coming quarters. Right? With that, I think despite all these investments, we do remain focused on balancing growth with profitability and and maintaining, you know, strong financial discipline. Looking ahead, all our priorities remain unchanged. You know, it is... It will continue to focus... We will continue to focus on driving sustainable revenue growth. We will continue to focus on improving overall productivity as well as margins through use of AI as well as investing in future capabilities that will deliver long term value to the shareholders. With that, I'm going to hand it back to the operator for the Q and A session. Participants are requested to use handsets while asking a question.

31:35 Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Aditi Patel from ICICI Bank. Please go ahead. Yeah. Thank you for the opportunity. My first question is on our... Also, we have given revenue guidance of 12% for the full year. That implies a very high sequential growth rate in next three quarters, maybe 7% plus CQGR. So is this based on the deals which we have already won, or it also depends on closure of some deals in the pipeline?

32:21 My second question is on that this quarter, we have shared our SG and A cost, COE cost and gross margin. So excluding the direct cost, SG and A and COE, the the remaining portion, 21% of revenue. What what are the major components we can attribute this cost to? Because this seems on a higher side. And my third question is on the transaction related expenses. So we... Earlier, we had mentioned that by q four f y twenty six, the transaction related expenses will be completed. Like, how long do we expect that to continue?

33:06 Because we have it in this quarter as well. Yeah. Thank you. Hello, ma'am. This is the management team. We're not able to hear you. Oh, we are we are not on mute. Hello? Sir, you are in the talk mode right now. Sorry? Are you able to hear me? Yes, sir. I'm able to hear you. Please proceed. Okay. Can I go ahead and answer the question? Yes, sir. Okay. No. I was saying, Aditi, thanks for the question. I will answer the part related to the the the growth trajectory. Right? And then I'll pass it to Raj for answering the other questions. The the confidence in relation to the 12%, we can see it in the confirmed numbers for the net... For this quarter, the quarter that's currently underway. Right? Q two. Of course, a few of the other things that I mentioned in the pipeline and extensions need to come through for the 12% for the overall year.

34:12 But out of the overall pipeline of extensions and new opportunities, For the 12%, there is a reasonable confidence at this time, right, that those line items will come through. There are other line items in the pipeline, which if they materialize, then we could go past the 12% number. But at this point in time, for the next quarter, there is a good deal of confidence, and we have reasonable confidence for the 12% that I talked about. We do not see downside risk to this 12% guidance at this point of time? Yeah. Unless there are any other adverse events that happen, right, in terms of what we are currently seeing as a confident line items, that is... I mean, this is something that we typically keep evaluating, right, on an ongoing basis, every opportunity that we are pursuing. For this 12%, there is reasonable confidence.

35:02 We should be able to work into that. Aditi, your next question was in relation to the split of the cost. Right? So what you see is direct cost, SG and A. So SG and A, by the way, just to sort of help you understand, this is just a pure overhead cost. What incremental to this, you will see the cost of the payroll cost of sales and marketing as well as the corporate management costs, right? So all of the payroll costs in relation to that is is in addition to this. So the remaining 20% is comprised of of those costs. Okay. And the transaction related expenses, will they continue for this year as No. So this is the this is the last quarter in which we have transaction related costs.

35:50 From this point onwards, you will not you will not see that going forward. Okay. Got it. Yeah. All the best, Rajan, for your future endeavors, and congratulations for the new role. Thank you. I will join back in the queue. Thank you, Aditi. Thank you, Aditi. Sure. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in this conference, we request you to limit your questions to two for participant only. The next question is from the line of Shankar Narayanan from iThought PMS. Please go ahead. Yeah. Good morning. Am I audible? Yes, sir. Please go can hear you. Yeah. Thanks for the opportunity. Firstly, on the productivity gains that you are facing.

36:38 So if you could help us understand what are the typical range that we see in our existing book of business. And at the time of renewal, does the client wants to reinvest back to us? And I want to know that equation where, let's say, a client prefers to spend that... An Arctic spend with you and areas that they want to, you know, capture those benefits within themselves. See, the the general productivity lift that we are seeing, at least with the the the projects that we have completed so far, just in terms of pure efficiency, productivity gains, the speed at which you're able to do the work. Right? It ranges all the way from 30% to 80%.

37:24 Okay? So there are several engagements where the productivity benefits are fairly fairly large. Like I said earlier, mean, it is a very well understood area and then you can create the kind of an agentic architecture or solution that addresses all the aspects with the right kind of governance and guardrails, then it is possible to significantly bring down the effort. However, I do need to add a caveat here that a lot of the work that we do is in the nature of helping with optimization and decision making. Right? And optimization and decision making context and questions keep changing all the time. So therefore, you don't need to put an effort on the new questions that come in. Right?

38:09 Of course, even that will benefit from the productivity gains, but it is not like a customer contact center, for example, right, where if you come up with an agentic solution, then you can go ahead and then actually eliminate a fairly large number of humans in the loop. Right? The nature of the work that we do is different, and therefore, we'll have to take it in that context, right, in terms of how things are going. On the other other part related to whether clients will want to do a lot of these things themselves, I I I would say that it is not that easy. In many instances, the issues that clients grapple with involve three, four areas. Right? One is just the data silos and the fact that you need to bring it all together and then put it into the the kind of platform and architecture that allows you to capitalize on the AI opportunities available, the AI stack that is available. Secondly, as I mentioned, you need to get alignment between your infra, your use of external large language models, your internal SLMs and, you know, that models and and the semantic layers and the knowledge graphs that I talked about. And then you are... Your own internal data platform, no, whatever you are standardized on.

39:30 That alignment between the stack is also a fairly complex thing and there are innumerable choices available to client and they need to make the choices that will actually have the right kind of impact, not just in terms of the effectiveness and the efficiency of the solution, but also in terms of the governance, the transparency, the guardrails, all that. So this this is a challenging thing, and I do believe at this point in time that organizations will need the help of external participants who are more in the know and who are constantly evaluating and answering these kind of questions. So my expectation is that this will continue and this complexity is only increasing. I talked about how many organizations will want to do this within their walled garden.

40:16 And therefore, it is not just as simple as saying that I will just depend on an open AI or an anthropic to do all the solving for me. And then throw all of your data and context like over to them. You'll have to figure out how do you wanna architect these things internally, and that is where partners like us, like, can be of help. Got it, sir. So tell me our target of achieving $200,000,000 revenue by FY 'twenty eight and 'twenty nine. So how much of that will be achieved through inorganic activities? And if a good portion of that comes from an organic perspective, which verticals you see that it can help to achieve this number? The organic part of it, I'll answer the second part of the question, right, and then I'll get to the numbers.

41:05 The organic part of it, I think we see very, very strong momentum in our financial services practice. We already have one significant health care client, right, on the payer side. You all know about the investment that we have made in Healtheon, right, which is a revenue cycle management company. They are now in the process of building out all the agents that will not only address the RCM problem, but many of them in a competent fashion can be used for addressing aspects, right, within other problem statements as well. So we are expecting the financial services and healthcare licenses to get some good momentum right on the back of everything that we are already doing right on an organic front. We are also seeing very strong momentum in our retail marketplaces vertical. Mean marketplaces is kind of part of the technology thing, but internally we look at retail and marketplaces together.

42:00 So whether it is e commerce platforms or whether it is food providers, right? I mean, or whether it is other fashion retailers and platforms that are available. I mean, we see good strong traction in all of them, in existing accounts as well as new accounts. Our industrials practice is also been growing. I talked about what that we are doing with auto and auto components. We are starting to do work with data centers and data center infrastructure. I mean, that will come under the the the industrials practice. I mean, with the technology flavor, but of course, I mean, if you're running the center. Right? So we are seeing strong momentum in all of that. Consumer goods is where we don't need to convert the pipeline that I mentioned. It should see a bounce back through the course of this year. Okay. So all these things provide some degree of confidence, right, that the organic growth trajectory itself will be strong.

43:00 Now how much of that 200,000,000 we will get to that? I mean, it'll all depend on how this year plays out. I mean, we have two years, right, this year and the next year available to us. Last year in against an average trajectory of about 26, 27% that we needed to be on. We did about 19, 20%. Now this year, I indicated that the confidence is there for 12%, but many things need to materialize, right, for us to go past that number. Now obviously, we are always evaluating inorganic opportunities. Right? There are one or two very strong opportunities in the pipeline. One of them is very interesting because it's a mix of health care life sciences as well as data data engineering work. Right? And and we believe that that could be a great combination. We are in the final two there. Right? I mean, is a letter of intent. Right? And and then there is discussions going on at this time. So whatever we are able to do through organic, I mean, the gap will... We'll look to fill through inorganic. If we do it in one of those momentum spaces, then even the inorganic part that we do will start contributing towards the 200 trajectory, not for the current year alone, but for the next year, right, grow that practice. So that's that's the thing in our system.

44:19 Got it, sir. And finally, I wanted to understand the number of data analytics partners that these clients will be working with. So are we seeing any consolidation in the number of vendors that they are working with? Can you just tell us what the process of, let's say, typically, how many vendors will they be engaging in with and what will be our wallet share with their top accounts? Yeah. I'll answer this in two parts. One is in general for very large organizations. Right? I'm talking Fortune 500, Fortune 50. They always have an ecosystem of partners. When I say an ecosystem, an ecosystem that could run as wide as even 20, 30 partners, okay, in the mix. And when you talk those kind of numbers, then you're talking about the wallet share of, like, anywhere from 2% up to to 5%. Right?

45:10 And and that is because these organizations themselves have multiple businesses, multiple geographies, and therefore, several spending centers and budget holders. Right? And and each of them, they will they will have partners that they are familiar with and they are comfortable with. Okay? So this is just in terms of the the large organizations. Smaller organizations, obviously, if if they are looking at a few analytics partners, right, as the primary partners, it could be to the tune of two, three partners, right, that that they work with. Mean, there are several clients where we are the only partner that that they work with as well. Right? Wherein we'll have a wallet share of a 100%. Right? So this is one aspect. The other aspect I kind of alluded to, it is always the wallet share question is more relevant in the context of a particular business or a spending center as opposed to looking at the entire organization, right, because of the nature of the work that we do.

46:07 And given that different stakeholders in the organization have their preferred partners. In most instances, even today, when it comes to new work that we are proposing or extensions, there isn't any competition that we are encountering, right, on that particular conversation. Competitions will always be at an overall account level, but each of us have our niches and our strong relationships and that's what we capitalize on. Thank you for your answers. And wishing you best of luck for the future and the work. Congrats to Sonar for being a part of this. You. Sorry, we didn't even hear you very well. Can you speak up a little bit? And and. Yeah. Thank you. Thanks. Appreciate that. Thank you so much. Appreciate it. Thank you.

46:54 The next question is from the line of Karan Upal from Philip Capital India. Please go ahead. Yeah. Thanks for the opportunity. So on the AI aspect, you know, Rajan, in your opening remarks, you had mentioned about the primary AI, which is 35% of your revenue, which is traditional generative and agentic. I just wanted to understand, you know, how are the margins in deals as well as the deal sizes? And a related question to that is on the secondary AI, which is AI infused in the projects. Maybe you are using BroadPort, OpenAI, Codex. Given the tokenization debate which is happening, so would that be a margin headwind as you more and more use these tools? Yeah. These are the two questions.

47:40 Hey. Hey, Karan. Nice to hear from you. So, Karan, on the first question, I think in the medium term, the primary a work should be margin accretive, especially as we build that foundry and agenting platform. Right? And and we are able to do more work in a prepackaged fashion. At this thing, given the primary work in a work involves a lot of the the forward deployed engineer kind of a model. Right? Where you meet... We're sitting with the client and doing the work. Good chunk of that is also happening on-site. I'm not saying that it's all on-site, but if I take the on-site, offshore mix for the primary AI work, that'll be a little higher in comparison to the rest of the work that we do.

48:25 And that has an impact on margins at this time. But over a period of time, we should be able to get better pricing, right, for the FDEs that we are deploying. I mean, right now, it's all in the chain of flux and then everybody is trying to jockey in, right, and then get into those. And and our clients are also saying, you how can you help us do few things, right, which actually prove the case in point. Right? And and that is the stated stated we are in right now. So... But over a longer period of time, I'm expecting that the primary work will be more margin accretive, right, as we move forward. And your second question, sorry, Karan, if you can remind me again, I lost the Yeah. Second question was on the second AI. 80% of the work which is significantly AI. Maybe you must must be using plot code, OpenAI, codecs, and similar platforms.

49:15 So Oh, yeah. Yeah. You're asking about the cost. Right? The token cost. Correct. Remember that. Yeah. No. That is not a consideration at this time because in in in 95% of instances where AI is is being used to speed up the work, right, and and improve the efficiency. The entire tech stack and the enrollment is provided by the client. So it is not a cost that we incur directly. Tokenization costs are currently being considered only by the client at this time. Right? So that is that is the context. But, of course, they will be monitoring that. Right? I hear so many instances and examples where people are taking a sledgehammer to a nail and that may not may not be needed. Also in the current euphoric state, AI enablement is what is being measured. When I say enablement, I mean, organization looking at how I provided the AI tools to people. Right? That is the main metric rather than whether it's efficiency or an effectiveness or a velocity metric.

50:17 Right? In this state, therefore, there is a lot of euphoria, but I'm hearing examples already where clients are starting to really look at, okay, what does this mean? Because my token cost is going up significantly. Does it make sense for me to be using an AI led solution, right, for this problem or I'm a better off with more humans in the loop? And and I think this is a question that will continue to get answered right in the coming quarters. Got it. Got it. And just one on on the... Your answer to the second question. So, you know, clients are now preferring more open source models, open rate models, maybe SLMs. So different models for different tasks. So in this context, relevance of the system integrators like you should increase, ideally, is that what you are also seeing on the ground?

51:05 That is correct. Because the more choice that is available in each layer of the stack and the more the interest of enterprises in retaining much of that competitive advantage within their premises, the more complexity that will be there in decision making. Right? And and one is not just talking about the cost of doing it, but using an AI led solution versus human intelligence led solution. It's also about scalability. It's about all of the points that I mentioned earlier, right, in relation to governance. And that is a fairly complex thing for organizations. I mean, now, everybody is quoting one another because they all know that if they don't do that, they'll get left behind. So whether you talk about a Databricks or an OpenAir and Anthropic or or any of the other improv providers as well. Right? Everybody is... It's a very... How do I put it? Mean, obviously, all of them want to make sure that now they're not getting left off. Right? But eventually, the competitive pressures will also come through, especially, I mean, if OpenAI and Tropic do their IPOs and get listed, there'll be more questions that investors will be asking, right, of them as well in terms of how are they realizing the return on investment for all the investments that they're making.

52:22 So I think it'll get a bit more interesting in a year from now. But right now, everybody is just happy with everyone else, right, in the same room. And last question is to Raj in terms of the margin outlook. So given where we are, our medium term margin aspirations were, I think, 21 to 22%. So how soon can we get there? So to answer that question, see, as we continue to sort of work through the rest of the year, the couple of areas of investment that we've all... Already outlined is, you know, Rajan also spoke about setting up the the chief AI officer organization. Right? So that will be an investment that we will make as well as the investment in the so the CTO function as well as the partnership function will be another function that we will try to definitely augment. So those could be the two investments that I would say, which are currently not captured in the P and L as it stands today. But that apart as the business continues to scale, I think there is enough headroom to manage the margins at current levels, which is the even for this quarter, we had guided in the range of between 20% to 21%.

53:35 I think we are very positive about holding on to the 20% to 21% for the growth profile that we intend to deliver this year with the investment that we've already outlined. Okay. Great. Thanks and all the best. Thank you. Thank you. The next question is from the line of Pratesh Thakkar from Prabhudas, Reladar. Please go ahead. Thank you so much for taking my question. So I have a first question on the side. Now the project that you concluded in quarter one, we had an impact. What was the quantum of revenue from that project that we could not scale through quarter two quarter one? Prateesh, I'm not able to... I didn't follow you exactly. Sorry. The question was Prateesh, we are not able to hear you clearly. Can you come a little more closer to the mic? Yeah. Is it audible now?

54:30 Much better. Thank you. Yeah. Yeah. Yeah. So I have a first question on the CPG side. The project that we concluded in quarter one, what was the quantum of revenue from that project that we could not schedule quarter one? So the... Roughly about, I would say, 100 to eight fifty k of projects where, you know, these were more in the nature of, I would say, onetime projects that that we signed up for in in q four where we didn't have follow on revenue in q one. So about 800 to between 800 to eight fifty ks. Okay. Understood. And just wanted to understand how many of these projects, as you said, project lead business contract that we have in our portfolio, if you can bifurcate the proportion of project led work versus managed services that we currently have?

55:19 So project led work is about overall on an overall basis, it's about ranges depending between 15% to 18%, Right? So that will be the range. Managed services is between 65 to 70%. And then pure, you know, you can call it T and M, you can call it staff augmentation type work, so that will comprise the remaining, Pritesh. Okay. Any visibility that we have that sort of work coming in quarter two or maybe quarter three that will again have an impact in the following quarters or years? Not really. See, I don't think we have such, I would say, you know, lumpy sort of contract that we anticipate in the coming quarters. But you'd also appreciate that as we continue to do more integration along with this point, we, you know, our our endeavor over there as well is to move them from doing a lot more project based work to maybe running larger programs within the client organization. So that's, I would say, constant endeavor that we will have. But the decision point business is where we do bulk of the contracting on the fixed bid, fixed scope sort of basis.

56:30 I'll add to that, Pritesh. I mean, see, it's a double edged sword, right? Like I mentioned earlier, if you are going to be contracting on a managed services model, right, or a T and M model, it is largely based on the number of people you deployed, their seniority and expertise, and the the... In some sense, right, the rate that you can charge for them individually or as a team. Right? And it's very much predicated on effort on the capacity that you're providing. It's only an instance that you're contracting using a model that is predicated, deliverables, milestones, outcomes. Right? That you have the opportunity to do retain more of the efficiency related margins. So those things that we will continuously evaluate and balance it out. Okay? So... Yeah. Obviously, but the second category of work will mean that there'll be some amount of lumpiness.

57:16 So we need to understand how much are we willing to tolerate, like, in terms of uncertainty. It would also be other models that they want, maybe within the managed services con... Con... We might be able to dial up and dial down. I also mentioned that we will try and find ways by which we can start pricing our agentic founder. Right? If we're able to do that, then some of this could be elevated. Understood. Now second... Thirdly, on the, you know, on the AI side, you highlighted our primary and secondary side of the activity that we do for our clients. So just wanted to understand those activities are largely linked to what we are doing along Databricks, or we are surely approaching this complex part of the activities of AI? It's not just Databricks. It is across multiple options that are available to clients, and it is also across the stacks. So the nature of the work itself could range all the way from just helping with data foundations, data engineering pipelines, events, batch processing. I mean, it could be any of those things, right, on the data layer. It could also be any kind of analytics all the way from diagnostic descriptive, predictive prescriptive, whatever model building, business insight generation, dashboards, optimization, and version making. Right? Right calls on spending money, right, whether it is marketing spends or supply chain inventory spends. Right? So it could be a fairly broad spectrum of work, which means that we will have to do work with the partner that the client is already working with. So this work, therefore, ranges across

58:46 Databricks, Snowflake, GCP, work that we are doing on Microsoft and Azure just from a data platform AWS as well. And then it will also leverage all kinds of other ecosystem players, right, whether it's a big intra layer, whether it's the dashboarding reporting layer, right, or whether it is the, you know, the the algorithmic approaches that are available from different partners, right, on the analytics and modeling algorithms. So it's a fairly broad ecosystem, right, that we need to partner with. Understood. And just one data point from your side. Mister Thakkar, may we request that you return to the questions here that are participants waiting for the return? Sure. Sure. Thanks. Thank you. Thank you. The next question is from the line of Shubhi Gupta from Asset Manager. Please go ahead.

59:34 Hello, sir. Good morning. Thank you for the opportunity. Sorry. And, interestingly, your audio is not clear. You're sounding very muffled. Hello? Yes. Please go ahead. Audible now? Yes, ma'am. Thank you. Yeah. Hi. So my question is that you mentioned just some time before that we... All the players have their own niche. So if you could just throw some more light on the competitive positioning of the company versus our peers? And if there is any moat, how do we see that? Yeah. So so, Shubi, our history, right, and experience has been largely at the front end of the value chain. Right? By that, I mean, all the way from customer and marketing analytics to even fraud risk compliance financial analytics because these are interventions, decision making and optimization interventions that you need to make right at the time of acquiring the customer, marketing to them, and retaining them. So work related to segmentation, cross sell, loyalty, personalization, marketing, return on investment, medium and small. I mean, these have been our traditional forte. Right?

1:00:46 And fraud counterfeit detection, figuring out whether a transaction is fraudulent. Right? I mean, these are all areas, right, where we have very, very strong credentials by virtue of working with many tech companies and ecommerce platforms. Right? And and all other kinds of tech based interaction systems that are that are there. Interestingly, these are also now being adopted by consumer and retail companies. For example, retail media network is a very big phenomenon today. Right? And and many of the capabilities that we have built in working with the tech ecosystem is relevant there as well. But our forte is really in the front end of the value chain. Supply chain has been an emerging capability area for us. Right? So do something that we are building. And again, if you look at it from an industry perspective, the big chunk of work that we do is still with the tech companies. Right?

1:01:37 But we have seen phenomenal growth in financial services, right, in relation to asset management, in relation to payments ecosystem. Many digitally intermediated kind of industries and sectors that is where our capabilities lie. As more sectors and more organizations start leveraging digital mechanisms, right, whether it is their internal supply chain or whether it is their interaction with their customers, we believe that our and our capability will be relevant to them as well. Sure, sir. Thank you. Thank you. The next question is from the line of, an individual investor. Please go ahead.

1:02:23 Sure. Two questions. So on your comment on the remarks, you mentioned that there was some softness from the few of your customers, if I'm correct. So can you elaborate on that? So what is exactly happening on the demand trend and what is the expectation on the client end? And secondly, if I... If you heard it correctly, so for the full year, the guidance you have been giving is 12%. For the last two years, clearly, we've been bringing about the range of 1718%. So is it that the visibility so far we have is, you know, guiding it? Or this year seems to be a little softer in terms of growth? Sure. Yeah.

1:03:10 No. Thank you for your questions, mister Latamsha. The the softness that I alluded to, one was the particular account, right, in the tech space where we talked about some amount of insourcing and consolidation, and that did erode almost $78,000,000 of business for us. Right? That business that which we were doing last year and which we are now opening with a down. Right? That is also one of the key reasons for the 12% guidance. Right? I mean, if that $89,000,000 of revenue were there, then we would have been able to give much better guidance, right, for this year. But having said that, I mean, that was triggered by two reasons. Okay? One is there was a change in leadership on the client end and the person came in... Who came into the role had a very personal philosophy, right, in terms of how much work they wanted to do with their vendors and partners versus what they wanted to do internally. Right?

1:04:07 There was also a cost reduction mandate, right, that was given out largely driven by the fact that tech companies and this particular organization, they are investing billions billions of dollars, right, into data center infrastructure and AI related infrastructure. So all of that has meant that this particular account, right, we witnessed this, but it is in the very same account where we are seeing a lot more opportunity. I alluded to opportunities within their cloud business, within their platform using with their disseminate applications. I talked about the work that we're starting to do for their finance function, right? All of that gives us confidence that even though we started with a gap down this year, we will be able to more or less plug that gap, right, in the account during the course of this year. So, of course, in a better year, it would have meant that we would have been able to grow on top of the base that we have built. And that is also the reason, right, why our guidance is muted for this year, right? And it's a 12% rather than being at the 1718% that you mentioned.

1:05:10 Okay. Okay. And also one more continuation part. So is it that the backlog for the target to achieve 200,000,000 for FY '28, '29 would be in the '28, that would be a much higher year in terms of mid line growth. And will it be done by in on click? And you said... So how are you looking at it? Yeah. We do need to ratchet it up, obviously. I mean, because of what we are seeing at the start of this year, it'll mean that we'll have to press the pedal on many things, right, in in terms of accelerating it from here on. And some of the things that I talked about, right, whether it is the chief technology and AI officer idea or or the doubling down on not just Databricks as a partner, but I talked about Snowflake for example. Right? And then we have our partnership that we are doing with OpenAI and Anthropic. The AI led focus is what we are expecting will really help us from an organic standpoint.

1:06:11 The inorganic strategy will have a dovetail with that. Right? I mean, we see a very strong momentum in financial services and health care and life sciences. And that is the sector where we are also looking to double down on on the inorganic front. So the combination of these things is really what we need to deliver on, right, in terms of ratcheting up the growth rates, right, that we need in order to get to the 200,000,000 mark. Obviously, I mean, all of this is also contingent on in general how the macroeconomic scenario plays out and all that. But we believe that we are positioned well, that we are making the right moves at this time, whether it is internal capability building, the solutioning, right, the platform, the agentic foundry that I called out, or whether it is the go to market and the partnership action, right, that we are currently executing.

1:06:59 Okay. Okay. So you don't see any change Sorry to interrupt, mister Sham. Maybe request that you return to the question queue that a participant is waiting for their time. Okay. Thank you. The next question is from the line of Rohan Nagpal from Healy of Capital. Please go ahead. Hi. Thanks for the opportunity. Am I audible? Yes. We can hear you, Rohin. Go ahead. Yes. Okay. Yes. So one thing on the volume discount, how much of an impact did that have on revenue, the volume discount they provide the FS customer? Yes. So this particular quarter, that impact was close to about 400 ks, dollars 4 Okay. The second question was, I think when you had given guidance in Q4, you had said 21% to 22% EBITDA.

1:07:52 And if that is... And if the dollars over... That was planned using 92 odd levels for the currency. Just wanted to understand what are the... Like, how does the... How exactly does the move in the dollar change... Impact your margins? How much is, say, a natural hedge? And, like, how every rupee of every rupee of depreciation, how does that impact your margin? And is that still in play? Or is that sort of washed out by additional investments that you have planned? So we did Rohan, so if I understand your question correctly, your question is the guidance was in Q4 was to deliver between 21 to 22 in EBITDA, but then given the the the appreciation in the dollar, why aren't we seeing the goodness from that appreciation flowing into the bottom line? Correct?

1:08:53 I mean, yeah, over the course of the year because you had a bunch of impacts this year. So just wanted to know, a, is that 21% to 22% still in play? And is the upside still in play given the given the investments that you've outlined? So, Rohan, for this year, obviously, like I said, our guidance would still stay in the 21% to 22%. In fact, some of the investments that we are outlining towards setting up the Chief Technology and AI Officer function as well as the partnership function will offset any benefit that we will see from dollar appreciation, right? So that is and we believe that these investments are also very important for us to set up the business for sustainable growth, right? So our focus will be to while we'll operate in the margin, the range that we've guided, we... You know, our our immediate focus is to set up these functions, which will help us deliver the growth that we need to push for to get to the $200,000,000 revenue guidance that we put out. So at this point, we don't intend to up the EBITDA margin guidance.

1:10:10 Understood. That's it from my end. Thank you. Thank you. Ladies and gentlemen, we'll be taking the last question that is from the line of Pritesh Thakkar from Prabhupada Sri Ladar. Please go ahead. Yes. Thank you so much for the follow-up. So just one data point from our side. I know on on the database engagement, how much is the revenue for this quarter or quarter one? Or if you can provide deal on that also. Databricks. Yeah. So the so the... We've guided last year that, you know, the net new revenue, which is purely Databricks revenue, where where we... It's either, you know, clients that we've sourced through the channel or have been sort of introduced to us by Databricks. That revenue for the last year was close to about $5,000,000 For this but work that we do on top of the Databricks platform or ecosystem, which drives consumption for Databricks was close to about 17,500,000 to 18,000,000 for the last year.

1:11:17 The run rate continues to be the same for q one as well. But what we are very excited about is a few of the opportunities that we are currently chasing, which are there in the pipeline, which would push that revenue up. But for now, the the revenue continues in the same run rate as as it was for the last year. Yeah. I mean, in fact, I would say that it's strengthened a bit actually in comparison to the last quarter. I think last quarter, we did about seven and a half, roughly the quarter number. Yeah. And... Yeah. This quarter is also, like, 7.8 or so. Sorry. 7.8, and we are seeing that that'll bump up toward eight and a half, right, next quarter in terms of just the data work that we are doing on the Databricks platform. This doesn't mean that we are implementing Databricks.

1:12:04 In several instances, it could be that we are using the Databricks platform to deliver the analytics use case, right, or the AI use case, right, that we might be executing. But the momentum is very strong. Understood. And lastly, the margin side, I mean, you indicated 30% of the workforce you've given out, we take this quarter, so 30% is still left. So how much is the impact we're expecting for it to? So the additional sort of I mean, so we did talk about so see, bulk of the rebates are already done. So you saw 2.7% impact. You would see a further impact of, I would say, about 40 to 50 basis points in the following quarter. But we believe that the bounce back in the business should be able to absorb the the incremental cost. Understood. Thank you so much for taking my question.

1:12:49 All the best. Thank you, Pritesh. Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to the management for the closing comments. Hi. Thank you. I think we covered quite a bit, right, I mean, in our opening remarks as well as the Q and A sessions. I am fairly enthusiastic about the whole AI evolution that is happening and while there have been concerns related to what will those mean for services organizations and all that, I mean today there is a lot more confidence that service providers and partners will be needed in the mix in order to help clients navigate the complexity that is emerging. And I also alluded to the fact that enterprises will want to retain their secret sauce within their premises, within their wall garden to speak. And I think that is what creates a lot of opportunities. There is more urgency and in general a sense of optimism with clients in terms of moving forward with a bunch of things. So we're expecting that all of that will translate and add to the momentum, right, in the coming quarters. Of course, the general overall macroeconomics, the autoeconomics, the war, right, all of these things will also play out, right, over the next few quarters. So I would just want to make sure that, no, we are doing everything that we are within our control to help navigate what we've witnessed in terms of complexity and changes that happen. But otherwise, we are internally preparing

1:14:19 and doing all the right things, whether it's a structure, people, process, capability, tech enablement. Right? And that's what the focus will be in the next few quarters or so. I will hand over to Sonal also to Seher Yeah. To Mark, and then we can go to go. Thank you. Yeah. Just to reiterate the points that Rajan was making, I think overall demand wise, there is a fair bit of bullishness. Of course, it's dependent on how close we get to customers and our execution strategy, like I mentioned in the beginning. Over the next few weeks, as I deep dive more into, you know, everything that's Latent View, those are the elements that we will be fleshing out that we will be putting in place in terms of, you know, some of you asked questions on the long range plan and what we are doing as far as specifics are concerned.

1:15:07 Those are the details that we will flesh out, get back to you, and hopefully have another conversation what... To walk you through that and get your feedback. But overall, like I said, from an industry perspective, yes, there are some uncertainties, macroeconomic changes that are happening, etcetera, but it's about the planning and the risk management and that. And most importantly, on the execution of what we've already laid down laid down as our strategic focus areas, right, whether it is organic growth, inorganic investments, geographic expansion, all of that. Stay tuned. We will come back to you with more details on the granularity of that, and I'm looking forward to engaging further with you and for your support and partnership. Thank you.

1:15:57 Thank you, members of the management team. Ladies and gentlemen, on behalf of LATENview Analytics Limited, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you.