NIIT (NSE:NIITLTD) Q2 2027 Earnings Call

0:01 Ladies and gentlemen, good day, and welcome to the NIIT Limited Q2 FY 'twenty seven Earnings Conference Call. As a reminder, all participant lines will be in a listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Note that this conference is being recorded. I now hand the conference over to Mr. Vijay Thadani, Vice Chairman and Managing Director, NIIT Limited. Thank you, and over to you, sir. Thank you. Good evening, and welcome to NIIT Limited's quarter two FY 'twenty seven earnings call.

0:47 First of all, I thank you for your interest in NIIT and for joining the call today. It's a busy result season. And for you to have joined this call versus many other opportunities you had, we truly appreciate. I'm looking forward to a very active participation from you and also your questions, which, as usual, have been extremely educative and help us sharpen our strategy. Before I get into our quarter two financial performance, let me introduce you all to our new CEO, Anish Sarkar, who took over from Pankaj earlier this month. Before joining NIIT, Anish was managing director India and director of India, Philippines, and Indonesia cluster at Pluxi, formerly Sodexo BRS.

1:42 Before that, he was CEO of Mercer India. In both roles, he delivered strong revenue growth and portfolio expansion, including through strategic acquisitions. Earlier than that, he spent several years at Capgemini Group in senior leadership roles across management consulting, sales, technology transformation. Anish is an alumnus of IIT Kharagpur, and IIM Calcutta. Before I get into the results, I'll invite Anish to say a few words. Anish, over to you. Thank you, Vijay, and good afternoon, good evening to everyone on the call. First, I must say that I'm both delighted and privileged to be here with you all and to have joined NIIT at this very pivotal point in the journey of this of this of this great organization.

2:36 It's been just about a couple of weeks, actually, slightly less for me so far than I have, during this time, spent time with our leadership team, our sales and delivery teams to understand more about our business, our market, our right to win and differentiators, etcetera, and a few clients already so far. Now a few things are are quite clear to me. Firstly, the strength of the brand, of the NIIT brand. It is, of course, an institution. Clients trust us, and I'm quite amazed to see that many have worked with us for for years, if not decades. And that depth of relationship is actually rare, and it's it's a great asset for us. Secondly, the quality of our people, our deep skilling methodology, which is consistently being delivering outcomes for learners and clients for several decades.

3:28 Third, the size of the opportunity in front of us. I think AI is reshaping how every enterprise works works, and that is driving demand for new skills at every level. In fact, it is driving a a degree of talent transformation, which is probably unprecedented in a very long while. We are already seeing this in the rapid growth of our AI programs and the early traction of our Gen AI sales programs as well. Over the coming weeks, I will be working further with our leadership team and and the larger teams to work on a more detailed review of our portfolio, our our market segments that we operate in, our go to market strategy, and our cost and operation structure as well with a specific focus also on where AI can create the most value for our clients and for NIIT.

4:24 Yeah. By the way, at the beginning of our planning cycle for the year, so it's it's a good time for me to also reflect on the future and our plan and see how this can dovetail into the overall planning exercise for the organization. With that, I will stop. Thank you, and I look forward to engaging with all of you today and in the quarters to come. Back to you. Thanks, Satish. Just to mention here that I'm joined here today by the whole management team at the corporate headquarters. I have the Chairman, Mr. Kumar. I also have Satish Lalah, the former CEO as well as now a non executive director on the board and as well as the CFO, Sandeep Pansal.

5:15 I also have Demaljit Singh Dasin, who has recently joined us joined us as chief growth officer for which we had sent out a separate communication, then Kapil Sarab from m and a and investor relations, and Udesh, who is the business finance head. We will all seek to answer all the questions that you have. And what I would start is by taking you through the performance in quarter two. I also want to talk about the fact that Anish has come in at a very interesting time as we will go through the results, and maybe I'll cover that at the end as to how his past experience will be extremely useful in in shaping our future strategy.

6:06 And it's a timely intervention or timely joining that he has. And I think we are looking for exciting times together. So let's dive into our quarter two numbers. Revenue in quarter two of FY 'twenty seven was $980,000,000, which was down 6% year on year, but up 3% quarter on quarter. For H1 FY 'twenty seven, revenue was up to 1... Was up to $1.90... $19.03 9,000,000, which is up 3% Y o Y. This is lower than the projections that we had shared with you. In quarter one, we were on the projection, in fact, slightly ahead.

6:55 In quarter two, there have been setbacks, and I'll be talking to you about that. The quarter two performance was driven by a quarter on quarter compression of consumption by GSI clients, specifically, in a quarter where spending is traditionally higher. If you see the pattern over the last many quarters, and especially the quarter one and quarter two of every financial year, we have a significant spend and consumption of training by GSIs. Specifically, consumption from four of our largest clients, GSI clients, alone was down by as high as INR 100,000,000 Y o Y in quarter two. This was contrary to a significant growth that we had seen in quarter one.

7:46 This compression in spend, in a certain sense, was secular across some of these large clients, and there are many theories to it, but one of them could be that they, a, had lower numbers of onboarding, but more significantly, they had significant resources in house. And under the cost cutting pressures, they felt that it may be easier to insource than to spend this extra money outside. However, all this is a consideration and cannot be considered as as the the only contributor, but this is a moving and dynamic situation, and I think we'll see how it plays out.

8:34 But if you exclude the impact of these GSIs, the rest of the business actually grew meaningfully in quarter two. Now if you look at the revenue mix by go to market, enterprise revenue was 625,000,000, down 11% year on year. Well, GSIs were impacted. The silver lining is the performance by our enterprise, BFSI and other programs, which is BPSI and industry performance industry performance growth. In quarter two, Dips achieved an all time high revenue of $200,000,000 and a strong growth of 17% Y o Y with 66% quarter on quarter.

9:22 Frankly, we should have seen going by the past quarter's performance of enterprise tech, a similar growth in that, but that was not to happen. In the past, we have spoken about the investments we have been making in our sales team and our focused efforts to expand our client base beyond the top four private banks to cover a broader set of financial services, like wealth management, VFCs and insurance. These efforts are now bearing fruit as was visible in the Dipsawatch. During the quarter, NIIT partnered with two of the largest banks with established dedicated wealth and sales academies aimed at upskilling wealth relationship managers and sales associates.

10:08 The initiative focus on strengthening role specific capabilities and enhancing frontline effectiveness using immersive AI simulations and AI coaches. Consumer revenue, on the other hand, was $357,000,000 up 3% year on year. Growth was uniform across technology and data science portfolio. Our direct to policy strategy has created a pipeline of job ready talent, which university clients are increasingly valued. Enterprise enterprise in enterprise versus consumer revenue mix was 64 is to 36 in quarter two, which was 67 is to 33, which obviously means that the enterprise part has increased in value.

11:04 From a product lens, revenue from technology programs was $661,000,000 down 13% Y o Y, reflecting compression in GSIs. On the other hand, revenue from BIPs was $321,000,000 up 11% Y o Y, driven by strong enterprise demand. Order intake in Q2 was $13.00 $1,000,000 We acquired 10 new logos in quarter two. This comprised six in tech technology sector, three new higher education institutions, and four new BIPs, clients, and logos. I'm also happy to share with you that we've been selected as the learning transformation partner by one of the top banks in India, which is exploring new ways of talent onboarding and development.

11:57 However, the impact of this will only be felt in future quarters as we get a sense of the size of that engagement, which is likely to be large, as well as the scope and the business model that will be followed. Just to give you a little more color on the financials, I'll invite our CFO, Sandeep Bansal, to give you an update on that. Sandeep, over to you. Thanks, Vijay. So I'll just take you through the financials. And... So despite impact of revenue decline, we were able to achieve an EBITDA ahead of our breakeven guidance. While revenue declined 6% Y o Y, our operating expenses declined 3%.

12:47 That is driven by strong cost optimization measures, simplification and productivity initiatives. While we continue to invest in GTM and new API offerings. EBITDA for q two was 27,000,000, a margin of 2.7%, which is up from 13,500,000, which was reported in q two last year, though it was negative 14,000,000 in q one of this year. For h one, EBITDA was 12,500,000 compared with negative of 49,000,000 in h one of last year. Below EBITDA, depreciation was 103,000,000 in q two. Net other income was 65,000,000. That was comprising of treasury income of 41,000,000. Treasury income is down from 175,000,000, which we reported in q one, and that's due to the market... Mark to market impact of the rising interest rates.

13:40 Other miscellaneous income is at 30,000,000. So this other income has been offset by net finance cost of 3,000,000 and exceptional expense of 3,500,000 because of the legal costs linked to a legacy tax matter that has now been concluded in several NIIT. This has resulted in a net loss of 22,000,000 for the quarter compared with a PAT of 14,000,000 in Q2 of last year. EPS was negative at 16 paisa for the quarter versus 10 paisa in Q2 FY twenty six. For H1, PAT was 59,000,000 and EPS was 43 paisa. Now coming to balance sheet and cash flows, cash and cash equivalents remained strong at six six thousand eight hundred and eighty nine million.

14:26 Underpinning our ability to invest through the cycle, CapEx was 44,000,000 for the quarter versus 69,000,000 in q one last year. PR days is 63,000,000... Sixty three days in q two FY twenty seven, which is up from fifty three days in q one. That is driven by delaying certain collections, which have been subsequently collected in October. Employee count at the end of q two was 816. This is down by 50 on q o q basis and hundred and twenty four four on y o y basis. This is an outcome of unreleased attrition and ongoing cost and resource optimization measures, which have been taken across automation. Back to Vijay. I think from an understanding of financials, we do have we have had a reduction in our cash balance to a small extent.

15:20 And that, in a certain sense, is also deployed partly in working capital and partly in capital expenditure that got incurred. I would now like to provide an update on our AI initiatives. AI represents one of the most significant demand opportunities in front of us, and it is happening now and not in the future. AI is embedded in a large part of our portfolio. However, we have separated out the revenue, which AI is directly contributing to. And that has grown from 9% last quarter to 12.4% this quarter, which is a significant investment or return on the investment that we have made in in AI.

16:15 There are many, many elements in which AI have been deployed, both for internal efficiencies as well as improving effectiveness of our customers. But I would like to just talk about one part, which is very significant, which is of AI coaches. We have now built a number of AI coaches and two specifically that I want to mention are coaches that let salespeople practice real customer conversations with an AI get pushed in the moment. As an example, the wealth management sales coach serves bank relationship managers and wealth advisers. Let us dial off our day in the life of a salesperson coach serves sales teams in auto and consumer.

17:03 Both these tools are now... Or both these coaches are now live at not one, but more than one customers and have contributed to a significant part of our customers' businesses as well as obviously a part to our business. In some of these cases, there are new business models which are emerging. And therefore, amongst other things, it enables us to grow learner engagement beyond the classroom to their place of work and add nonlinearity to our revenue. The AI coach is run as a subscription on top of the training fee, and they bring delivery content and LMS businesses along with that. So it is not only a one times revenue, but it's a continuing revenue.

17:57 It's very small in comparison to the overall team, but that's a very, very positive thing that should help us in future. There are a number of other AI offerings that one could talk about. We did mention some of them in the recent conferences, so I will not touch upon them unless somebody wants to know more about them in the q and a session. Talking about future or just... Yeah. Talking about future. One thing which is visible is GSIs are returning with more advanced requirements, but overall volumes are likely to remain under pressure for the next couple of quarters. The reason is all GSIs have a huge task of talent transformation.

18:44 But what we see as a first step what they have done is control their expense, which they were spending outside, taking the stop of the situation, figuring out their talent transformation strategy, and then deciding to do what they would like to do in house and what we would like to get done from others. This is a continuing task. But I think in the next two quarters, we don't think this will bear fruit to the extent that they should. There are some green shoots where some of the GSIs have brought back to us with their revised talent transformation strategy, and we've been able to contribute a bit with that. But GSIs continue to represent a significant long term opportunity.

19:30 Many are still defining, as I mentioned, their strategy for their transformation. So we are expecting that some will move faster than others, and we will see orders as we go along. But I don't see an impact of that coming up in the next two quarters in a significant manner. Outside the GSI segment, new logos and new initiatives, some of which I shared, have been gaining momentum. We did experience a growth even in the last quarter, and we do see that, that growth will perhaps accelerate as we go forward in the coming quarters. This is not to say that there is a great amount of turbulence in the market.

20:17 AI is just one of the disrupting forces. There is the economic uncertainty. There is... There are rising interest rates, and there are many other moving parts and the way strategies are changing. There is also the major cybersecurity threat, which is off late becoming visible in more ways than one. And all these forces have to be considered. But amongst that, talent transformation remains a common theme. How and when will companies find it very, very important and urgent to spend that money will come on an individual company strategy point of view. Not having to depend on that, we are, at this point of time, looking at the rest of the year and going by the experience of this quarter, assuming that the revenue is likely to be broadly flat, we will use... We will look this outlook next quarter because this is a dynamic situation.

21:18 And I think, Anish, as he also gets his arms around the business and gets better sense, I think we'll be able to get a better sense of situation when we meet one quarter later. Meanwhile, cost optimization measures are in place, and we expect a low single digit EBITDA margin to continue for the year. Working on a positive EBITDA margin was a very important requirement, which many of you stated as a going forward strategy. And we took a full note of that and had very aggressive cost optimization measures put in place. Given the turbulent times, we said we should conserve our capital and spend on only those strategic initiatives, which are likely to deliver us good results.

22:06 And accordingly, I think our cost optimization efforts have borne fruit, and you can see them in the increased EBITDA. There are many green shoots in this business. Air revenue is growing. Fips are as... Revenue is growing. However, if there are newer recruitment patterns which emerge, we should be very... We should not be... We should be wary of that and be ready with alternate solutions, which we are. And therefore, being close touch in... Being in close touch with our customers is an important issue. As I mentioned, cost initiatives are in place and delivering results. GSIs continue to represent a large opportunity. They are reconfiguring their talent transformation, so their volumes are likely to be muted under pressure. And in the near term, we believe that we have a large opportunity.

23:01 They all have a very strong growth agenda in terms of talent. GCCs are also battling cost pressure, but present an un penetrated opportunity. University segment is growing because the graduates need deep skilling, and IIM Neo solutions are very clearly differentiated and preferred by discerning universities. And lastly, Anish Sattar, who joined us as CEO, brings extensive experience across global GSIs. Understanding how a GSI works and how various levers work, I think, is more than fifteen years of experience in the technology sector or technology services sector, specifically with GSIs, will be extremely useful, and he'll bring very clear insights.

23:53 His significant experience as CEO of Mercer India will give us a very good understanding of what kind of talent transformation strategies have been used by companies in the past and how this might play out in the future. And lastly, his deep relationships with HR leaders through his last assignment, Flexi, should give us inroads into how organizations are thinking about talent transformation at an individual level and from there, derive our strategy set over the next sixty, ninety days. So I will pause right now and open the house for questions. And after that, if there is a need, then we will summarize this discussion again.

24:43 Over to you, operator. Please open it for questions. Thank you, sir. We will now begin the question and answer session. Session. Our first question comes from the line of Kashish Mehta with Dollar Capital. Please go ahead.

25:34 Hi. Thank you for taking my question. So I have a couple of questions. I just wanted to start off with the trimming of headcount. So we have been trimming our headcount for a couple of quarters now. And as the team mentioned, there has been some pressure from the clients regarding discretionary or the spending side. So I just wanted to understand, is the trimming of headcount more visibility, reflection of the demand scenario, or it is, you know, the AI efficiency that the company itself is working on? And then finding productivity benefits. So on one side, they are sort of, you know, cutting down on the headcounts. And... But at the same time, they are compensating it by the AI efficiencies. So you wanted your, you know, color on that thing.

26:21 Okay. I'm sure others would like to contribute to this, but I... My answer will be all of above. There are definitely AI efficiencies at work. Our whole development effort, we have seen significant gains to the tune of 50% plus in terms of working efficiencies. And given the fact that we are working at lower volumes right now, I think that efficiency benefit, we would have taken advantage of. Having said that, there are strategic resources that we would continue to invest in and strategic initiatives where we would have actually increased headcount as well. The second was many of the initiatives that we had, which are very significantly impacted and positively impacted by using AI. So for example, our own sales efficiencies our own sales efficiencies would increase substantially using the AI coach that we use internally as well as as bots that we may have deployed.

27:37 And some of that will also be visible in the way the situation would have unfolded. Third is our back office head cost, which is headcount. And that back office headcount, which is on all the services functions, also would have gone through trimming and efficiencies. The overall g and a or expense that we had built was for a larger volume. And what we are trying to do is variabilize to the extent possible so that both indirect and G and A, we are able to work at better efficiencies. At the same time, not sacrificing on the the future where significant investments are required. So impact of all that is visible in the headcount reductions that we have seen.

28:32 And this headcount reduction in will this continue at this level? I don't think so. But will there be trimming as we go forward? There will be as and when it is required. At the same time, new investments will be made wherever they are required. Anybody else wants to contribute to this?. Right. So I'll just carry forward again. And, sir, regarding our product mix, you know, we're seeing we see it has been modulating more towards BFSI, you know, the spread between tech and BFSI. So, again, right now, it's sixty seven and thirty three, the mix. So where do we see this mix, you know, stabilizing?

29:18 And what is the sort of, you know, demand action that is, like, naturally obvious, you know, you're seeing more demand from the BFSI side, but where do we see this thing, you know, stabilizing over maybe next few quarters? Or this is the run date that, you know, one should be looking forward to? Well, if you see last year, same time, we were at nearly seventy five twenty five. I think seventy seven twenty three. Now... And for for... No. Sorry. $66.34. I think we have been typically about two thirds in in technology and one third in... It's not only BFSI. It's BFSI and other industry performance. So the larger enterprises, industrial enterprises that we service.

30:08 We do see a great growth potential there because they are all very eager to adopt AI. They are also finding AI and basic AI training is becoming commoditized. Just about everybody has an AI coach. The question is not whether you have a coach or not. It's a coach which actually delivers results. I think we are amongst the very few who have actually shown results and outcomes. And I think to that extent, that part will obviously carry momentum. The technology segment is in terms of taking a step back in redefining their talent transformation strategies. And over a period of time, my feeling is when they stabilized, obviously, that growth will come back. Overall, my feeling is we will remain in this two third, one third scenario, approximately a few percentage points here or there.

31:03 That's my belief. Anybody else wants to talk? Right? Alright. Right. It's fine. Just the last question just to round it up. So what would be the enrollment number for this quarter? I'm sorry if I missed this at the beginning. $2.20 k. How much? It's 100 k plus $2.20. It's about 220,000. Okay. Okay. Okay. That's pretty much it. I'll again join Mark in the queue for any further questions. Thank you so much. Good luck. Thank you very much. Thank you. Ladies and gentlemen, if you wish to ask a question, The next question comes from the line of Ganesh Shetty, an individual investor. Please go ahead.

31:59 Good evening, sir. One question regarding our investment phase. We have we have been in investment phase for a very long time now, and it has been, I think, more than two years that we are continuously investing in our capabilities and AI related initiatives. So I just want to ask you whether the... Most of the investments are already done, and can we expect, you know, moderately better EBITDA margin going forward? That is number one. Second question, with the high rate of AI disruptions, whether the investments what we are have been doing for quite a long time is still relevant and still is playing a role in our growth strategy and revenue upgradation.

32:49 Can you please explain this? Thank you very much, Ganesh. Your question is always a very nice one. So thank you for asking that question. Yes. Our investments in AI as well as other automation initiatives and business transformation initiatives has been significant. You would notice that our capital expense this quarter has actually got moderated. And in coming quarters, I think it will it will remain a little moderated because what the original projects that we had, many of them are are now getting capitalized as well as delivering results, some of which are visible in the fact that nine percent to 12.4% of the revenue we got from AI led initiatives.

33:44 Having said that, AI is a moving target. We don't know how AI is shaping up. If you see, there is a need for continuous investment, and we will continue to do that. I have maintained that we have a pole position, and I would reiterate that we have a pole position in an effective use of AI in improving the productivity and effectiveness of an organization. And we would like to maintain that, and therefore, would like to be one step ahead in in in some of these initiatives. Also, our partnerships with many of the technology OEMs is also giving us a vantage point by which we can actually remain ahead on... Ahead of the curve. So that part will remain.

34:31 But, yes, our investment levels are lower this quarter, and we think they are likely to be. So unless there is a big initiative which comes in, which obviously we'll share with you. The second is the impact of these. I said the best way to measure that is in the internal efficiencies we got, which are visible in the EBITDA. And at a lower revenue level, we are able to demonstrate a higher operating level profitability. And the second is the percentage of revenue that we are getting from AI led activities. Generic AI training is becoming commoditized. In fact, many companies are now insourcing that because they believe that they can learn it from.

35:19 So specific AI training, which is, for example, for leadership teams, is something that we specialize in, and some of our contacts have delivered exceptional value there as well as specific, which enable the effectiveness and productivity of the organization, and we demonstrate that through performance are the ones which customers are in... Are are seeking to use from NIIT. And as they finalize their plans, I think this is the attraction in that. So this remains an integral part of our strategy going forward. AI remains and will remain for for some time to come at least. Thank you, sir, for the explanation. So my second question is regarding our integration of RPS Consulting and NIIT Enterprise Solution business.

36:13 So has this changed our go to market strategy, and can we address a larger consumer base for the for for the consumption of these services? Can you please explain this? And will it be resulting into more EBITDA or the more margin accretive in the future days to come. Thank you. Should have talked about RPS and NIIT Stackwood solutions into a common PPLS, the enterprise technology learning solutions. But I had talked about it in the past quarter as something which is happening.

37:02 But I have to say that integrating two teams does bring some new learnings for us. Number one, I think while both of them were servicing similar types of customers, but they were going to the customers with different offerings. Part of their offerings were different. Some of them were overlapped. I think by combining the sales teams, we are able to give a more concentrated attention to our customers and be able to service them with a larger array of solutions that we have. It is also helping us build newer solutions. At the same time, there are two sales forces who are working together.

37:49 One of them has been very strongly transaction driven, and one of them has been very strongly solutions driven. And how the two com... Teams work together, obviously, is not a trivial task, and we are working on that and have been successful. Though it's a journey, and we will continue to see the benefits of that journey. Whenever you start with integration, your cost structure actually does not reduce immediately. It takes a couple of quarters for it to settle. I think the benefits of that integration, we will realize over the next few quarters. So you're right in your assumption that as we make these two teams leaner and and much more effective working together, there should be an upside in reducing cost structures or fixed cost structures, and we will work towards that.

38:49 Thank you, sir, for the answer. So my third question is regarding continued macroeconomic problems, continued disruption in technology, and continued hiring freeze. All these things are creating unprecedented pressure on our revenue growth and our strategy as a whole. So are we expecting anything in new sector to step in, like manufacturing or EV where the training requirement may soon start or training requirement may be developing? So at least, you know, we can have a different stream of learning learning business for revenue, which can actually compensate for the the level in the present market.

39:44 So as we have got now new in the, can we spared this inorganic initiative to get into newer sectors? Can you please explain this? And thanks a lot at all the best. Yeah. I think you are absolutely right. Manufacturing and manufacturing is a very big initiative within the country. It's a big strategy and society for the country. And manufacturing... Modern manufacturing requires much more transformation of the workforce than traditional manufacturing does. And I think in their modern manufacturing domains, we were playing the role. We have a team which has been working on it. But I think as I mentioned, the revenue becomes significant for us to share, we would be happy to do that. But these are work in progress initiatives.

40:40 So is the case with EV. EV presents a a great opportunity, and and there is work in progress. But I think the results of that will take time. The reason is, at this point of time, the economic pressures which organizations are going through, especially who are investment intensive, capital intensive organization, manufacturing is a capital intensive activity. The higher interest rates and this morning, this is also up... Some more higher interest rates coming. And then the the fuel cost going... The energy cost going through the roof, I think are substantial things that they are grappling with. But definitely, there is work in progress, and I think it will gather momentum as we as we discover things going forward.

41:35 Thank you very much, sir. The Yeah. It's a great Yeah, sir. Opportunity across the board. Thanks a lot, sir, and all the best, sir. Thank you. Thank you. Pratev, if there are no more questions, then we can just summarize and close the call.

42:25 Yes, sir. There are no further questions at this time. I would like to hand the conference over to management for closing comments. So thank you very much for being here on this call. I just want to summarize our quarter two performance was impacted by unexpected pullbacks by GSIs. But that apart, we have a path to profitable growth in the coming quarters, especially from other sectors as well as the initiatives that we have taken, specifically AI. Our investments in broadening the client base, especially in our BIPs, have started showing results, and we achieved our highest ever revenue in this segment and 17% Y o Y growth. Our AI offerings are gaining traction, seeing strong growth sequentially.

43:13 Care revenues crossed 12.4%. We remain confident of the longer term structural growth opportunity and are committed to continue making the investments needed to capture that opportunity. In addition to investing in a stronger sales team and AI offerings, we continue to evaluate inorganic opportunities that enhance capabilities, channels or IP, which offer a clear path to returns and cash back. Of course, we share the results of these as and when they materialize. In this new environment, our new leader, Anish, comes with specific strengths that we talked about, and we are banking on the new team to take us to our growth trajectory as we envision together.

44:00 So thank you once again for your continuous support and your very insightful question. These definitely help us in shaping our strategy set in more sharper words. Thank you very much, and wishing you a great day and a very happy Diwali. Thank you, sir. On behalf of NIIT Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.