Updater Services (NSE:UDS) Q2 2027 Earnings Call

0:01 Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY 'twenty seven Earnings Conference Call for Updater Services Limited. 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. Before we begin, a brief disclaimer. This conference call may contain forward looking statements about the company, which are based on the beliefs, opinions and expectations of the company as of the date of this call. These statements are not the guarantees of future performance and may involve risks and uncertainties that are difficult to predict. Please note that this conference is being recorded.

0:50 I now hand the conference over to Mr. Raghunanda Tangirala, Promoter and CMD of Updater Services Limited. Thank you, and over to you, sir. Yes. Thank you. Good afternoon, and warm welcome to Updater Services Limited Q2 and H1 FY 'twenty seven Earnings. Joining me today are Amitabh Jaytouria, our Senior Executive Director Mr. Ram Praveen, our Chief Financial Officer Ms. Elizabeth Jacob, Founder and CEO of Agena Sunil Munshi, CEO of DNA and our Investor Relations at Rycosis SGA.

1:40 I hope you all had the chance to review our investor presentation and results, which are also available on the exchange and our website. Let me start with the headline numbers for Q2 FY 'twenty seven. Consolidated revenue from operations grew by 11% year on year to $8.12 crores. EBITDA grew by 37 to INR 43 crores, with the margin improving by 100 basis points to 5.3% profit after tax. Profit after tax grew 62% to INR 32 crores.

2:28 Before I turn to the industry and the business, I would like to share a few developments from the quarter that reflect how we are strengthening our operations. First, to strengthen execution in our IFM business, we have appointed Rajiv Paragwat as the Chief Operating Officer. Rajiv comes with a very strong credentials in the decades of industry experience. The appointment allows us to separate day to day operations management from new business development so that he gets a dedicated leadership focus. Second is part of our succession planning.

3:14 Mr. Jidjasra Serma, Executive Director on the UDS Board, has been appointed as CEO Designate for our subsidiary Matrix from 04/01/2027. She will take over a CEO from the current CEO, Mr. Ravi, who is due to retire. Ravi will continue to be a service matrix in a new capacity. Third, as part of our ongoing efforts to simplify the group structure, Deneve has initiated closure of two small step down subsidiaries, Deneve Europe and Deneve Korea. It is not expected to have any material financial impact, and it reduces organization complexity and management overheads.

4:07 Fourth, in September, SIGGR reaffirmed our long term rating as AA- with a stable outlook and short term rating as A1 plus This reflects our strength in our balance sheet, strength of our balance sheet and our net cash position. Let me now turn to the broader industry environment. India's office market continued to be strong with absorption in the first nine months of the calendar year 2026, reaching a record 66,000,000 square feet. Global capability centers remain a key driver of this demand, accounting for a record about 28,000,000 square feet of leasing in the same period.

5:03 As enterprises expand their office footprint, the need to need for reliable housekeeping, engineering maintenance, workplace management and integrated facility management increases. This is encouraging for organized IFM providers such as UDS. At the same time, the market is becoming more selective. Customers are increasingly focused on operational efficiency, measurable service outcomes, compliance and value for money. The labor courts now in their first year of implementation have raised the compliance bar for everyone sorry, for every enterprise that engage contract workers.

5:54 We believe this favors companies that combine execution capabilities, technology, standardized processes and strong governance. And this is how UDS has operated from the beginning. Turning to employment trends, the demand environment remains mixed. White collared hiring growth moderated to about 2% year over year after a strong August sorry, 2% year earlier in September after a strong August. Hiring in BPO, IT enabled services and GCC grew by about 4%, while traditional IT and software services remain subdued.

6:43 In VSS, these hiring cycles are enterprise spending patterns. In basis, these hiring cycles and enterprise spending patterns influence demand for background verification in certain space enablement services. In IFM, rising commercial activity and industrial expansion continue to support demand for our outsourced facility services. Industry expansion is something of particular interest for UDS, given our strength in the space. Against this backdrop, our focus remains on building resilience across our portfolio, improving the quality of our revenues and ensuring that growth translates into sustainable profitability.

7:40 Now let me take you through our IFM division. We added seven new significant logos in Q2, taking large logo additions for the first half of 'thirteen. This is across manufacturing, commercial, real estate and health care. Q2 FY 'twenty seven, IFM revenue from operations grew 11% year on year to INR $5.60 crores compared with INR $50.03 crores in Q2 FY 'twenty six. For H1 'twenty seven, IFM revenues stood at about $10.84 crores, up 11% year on year. IFM EBITDA for the quarter was about INR 24 crores with a margin of 4.2% compared with 3.8% in Q2 FY 'twenty six.

8:39 Growth during the quarter was driven by three factors: new client addition across diversified industries higher volume from large strategic contracts higher volume from large selling contracts that have now moved past their ramp up phase and deeper wallet share within existing market clients. The upfront employee costs we carried on these contracts a year ago have largely normalized, and this is visible on the year on year margin improvement. Industrial and manufacturing customers remain our largest market, together accounting for about onethree of the IFM revenues. We also see good opportunities across commercial real estate and scale logistics and commercial facilities.

9:35 Our client relationships remain long standing with about 95% retention over a multiyear window. The leadership change I mentioned earlier is designed specifically for this business with Rajiv overseeing operations and Saruman, who was earlier our COO, is to focus on growth. We now have a dedicated attention on both operations and service delivery as well as client acquisition. Technology remains central to how we run IFM. We continue to deploy digital workforce platforms, AI enabled workforce management and predictive maintenance tools across client sites.

10:24 These help us optimize manpower deployment, improve service quality and project margins. Our priorities for the rest of the year remain unchanged from what we had mentioned earlier. We aim to improve client level profitability, shift the mix towards higher margin technical services such as MEP, energy management and technical AMCs and continue to win integrated outcome link mandates. We remain confident of delivering healthy growth in IFM supported by increasing outsourcing penetration and opportunities across industries, manufacturing, infrastructure and commercial real estate.

11:16 Turning to Global Flight Handling. The aviation environment was softer this quarter. Domestic passenger traffic witnessed a year on year decline in July, August, primarily due to airline capacity adjustment, continued disruption arising from the restation cycle. We also continue to build this higher value side of this business through global school of aviation, including security training and regulatory certification programs. These revenues streams are less than short term air traffic cycles. With the festive and winter travel season ahead, we expect activity to improve in the second half, though the operating environment in aviation remains uncertain.

12:13 Moving to Avon. The core mailroom management business and integrated support service business continued to be on its growth path, With revenue growing 4% year on year in Q2, Avon is steadily increasing the share of higher margin value added services, including enterprise transport and workplace support solutions, which we expect to improve both revenue quality and profitability through FY 'twenty seven. The past issues is also moving forward, a partial resolution with the possibility of some recoveries. I would now like to hand over this call to Mr. Amita for an update on our BSS segment.

13:03 Thank you, Raghu, and good afternoon, everyone. I will give you a brief overview of the BSS segment and then hand over to Elizabeth Jacob for Athena, followed by Sunil Munshi for Dine, and then I'll come back for a small update on our Matrix subsidiary and that particular business. The simplification of our BSS structure with Dineve, Athena and Matrix, now reporting directly to the senior leadership team is beginning to show results. Over the past two quarters, we have seen faster decisions, tighter cost control and clearer accountability for outcomes in each business. The objective is to build businesses that are more agile, more technology enabled, more customer focused and better positioned to deliver sustainable profitability. The closure of Dine's European and Korean step down entities is also a part of the same simplification effort.

13:55 We have also simplified Dine's internal operating and leadership structures. We added four new significant logos in BSS during the quarter. BSS revenue from operations for Q2 FY 'twenty seven stood at INR $2.67 crores compared with INR $2.40 crores in Q2 FY 'twenty six, which is a growth of 11%. EBITDA for the segment was about INR 21 crores, more than 62% higher than last year, with margin improving from 5.3% to 7.7%. For the first half, VFS revenue was at INR $5.20 crores, up 9% year on year with EBITDA of about INR 40 crores, a growth of 37%. The margin percentage also improved to about 7.6% compared with 6% in H1 of FY 'twenty six.

14:44 I want to highlight that the margin improvement has come alongside growth and not at the cost of it. Every one of our BSS businesses contributed to this, whether through new client wins, better delivery or lower cost to serve. Sales enablement through Dineve and Athena is now about three fourths of the total VSS revenue, with the balance coming from Matrix, Avon and Global. By sector, ITIT enabled services contribute to about 31% of VSS revenue and VSSI about 12%, with the rest spread across many other segments such as retail, consumer, manufacturing, aviation, and other industries. This spread matters because the demand drivers for each business are different, And when one end market slows down as traditional IT hiring has, for example, the others give us balance.

15:38 The common thread across our BSS businesses remains technology led transformation. Clients are no longer buying headcount. They are increasingly buying outcomes, productivity and measurable return on their investments. Our investments in AI platforms, agentic AI solutions and automation are aimed squarely at that shift, and we are slowly seeing them translate into wins and better unit economics. Our focus remains on ensuring that revenue growth is accompanied by an improvement in profitability. We are continuing to simplify processes, optimize costs, improve business productivity and deploy technology more effectively across our operating companies. While headwinds do continue in some of our BSS businesses and margin percentages may seem some may see some impact in the second half of the year, overall, we expect the BSS segment to deliver good results for the year as compared to the last year and build on the foundations of the first half of this year.

16:41 With that, I will hand over to Elizabeth. Elizabeth, over to you for Athena. Thank you, Amitav. Good afternoon, everyone. I'm pleased to share Athena's progress during the second quarter of financial year twenty seven. The customer engagement industry continues to evolve with experimentation around AI. Enterprises no longer evaluate engagement partners on cost alone. They are increasingly prioritizing customer experience, speed of response, conversion rates, and measurable business outcomes. This is where Athena is focusing its capabilities along with its own pilots and experiments around AI. For quarter two quarter two financial year twenty seven, Athena reported revenue of INR 29 crores with EBITDA of INR 5.5 crores and an EBITDA margin of 19%.

17:37 That was INR 3 crores, up 25% year on year. Performance for the quarter was in line with our internal plans, and margins were sustained with an upward trend. We had no client losses during the quarter, which is important after the client attrition we went through in the earlier years due to their own restructuring. The quarter also benefited from the two new client contracts that started in July, each with an initial tenure of two years. Together, these mark a cautious return to growth for Athena. We've also signed two new clients in the BSSI sector in October. These will ramp up gradually and start contributing to revenue from the from the quarter... Upcoming quarter.

18:25 On Agencik AI, our efforts are now slowly translating into revenue. Both of our Agencik AI deployments are live and generating revenue. The first for a BFSI company supports outbound lead generation. The second for an industrial company runs service campaigns that capture customer feedback on its offerings. Together, they show that the agentic AI solutions can be used across different industries and use cases. Both deployments come out of a proof of concept pilot that we have completed last year and moving them into paid live programs within a few months is an important reaffirmation of our work in this space. We are also working with several existing clients to expand adoption of our AI based solutions.

19:15 These programs typically take two or three months to get approved, and our pipeline gives us confidence that they will translate into meaningful business over the coming quarters. For us, AgenTeq AI is not a replacement for our core services, but in addition to them. It allows us to offer clients a blended model where AI handles high volume, repetitive interactions, and our team focuses on conversations that need human judgment. It is also allowing us to tap into markets that we were absent from earlier, such as service calls. Diversification beyond BFSI remains a strategic priority. We continue to build our presence in real estate, retail, consumer products, manufacturing and other emerging sectors.

20:03 This broadens our addressable market and reduces concentration risk. BSSI concentration has already come down from 85% in financial year twenty five to 80% in financial year twenty six, and the new sector wins will help us contribute that trend even as VFSI remains as an important and profitable part of our business. At the same time, demand for omnichannel engagement across voice, email, chat, and messaging continues to grow, and our technology led delivery model positions us well to capture it. Looking ahead, we are on track to deliver on our plans for the year. We will stay focused on converting our pipeline, ramping up our new clients, expanding into newer industries, and building AI into more of our service delivery.

20:52 Thank you, and I will now hand over to to Sunil Munshi, CEO of Genesys. Sunil, over to you. Thank you, Elizabeth, and good afternoon, everyone. I am pleased to share Vinay's performance for second quarter of FY twenty seven. While enterprises, especially in technology and IT firms, remain circumspect in their discretionary spending, however, we see that they are increasingly linking sales and marketing budgets to measurable outcomes such as qualified pipelines, sales conversions, revenues, so on and so forth. This plays to Dinev's strength, especially as a technology enabled revenue execution partner.

21:41 For Q2 FY 'twenty seven, Dine reported revenue of INR 175 crores, up 17% Y o Y. EBITDA stood at INR 10 crores, up 110% year on year with an EBITDA margin of 5.6% compared with 3.2% in Q2 FY 'twenty six. That stood at INR 8.5 crores, up 160% Y o Y. Growth in the quarter came from both demand gen and field marketing services. In Q1, we had flat margin pressures in demand gen. In Q2, business that business has done better because much of our demand gen service revenues is tied to client outcomes, better delivery supported by our AI tools earned us higher outcome linked incomes.

22:39 The demand gen business continues to face headwinds and uncertainty, but we are positioning ourselves for long term success. Field marketing services at the same time kept growing steadily. Our technology services did well and continued cost discipline has supported the margin growth. Field marketing services continued to gain wider acceptance among clients, reflecting growing demand for integrated sales and marketing solutions. As we discussed in Q1, the businesses operate this business operates at lower margins than demand gen, but however, it brings us recurring engagements, deepens our relationships with large enterprise clients and give us more opportunities to cross sell our digital and other demand gen offerings.

23:27 In Telebank, our proprietary AI led sales intelligence platform is central to all this. It brings intent, enterprise, technology and engagement data together into one view of each target account so that sales teams can focus on the accounts which are most likely to convert. It maps the key decision makers within each account, recommends the next the next action, and generates outreach content such as call scripts, personalized emails, quizzes, so on and so forth. This product is continuing show promise, and we continue to invest and focus in it. We also ran several AI pilots with demanding clients and are now scaling this digital workforce model across the demanding life cycle. In technical terms, what this means is that AI agents take on research, qualification and follow-up tasks, while our people focus on high value conversations that connects the pipelines into revenue.

24:27 This improves conversion for clients and improves productivity for us. And this shift towards AI enablement, outcome based sales engagement is structural, and Dine was getting well positioned for it. With that, I'll hand the call back to Mr. Amitav Jaykuria for an update on Matrix. Thank you, Sunil. Let me give you a quick update on Matrix, which has two subsegments as we all know, employee background verification as well as audit and assurance. For Q2 FY 'twenty seven, Matrix supported revenues of INR 32 crores, up 2% year on year. EBITDA stood at INR 4 crores, up 31% over the previous year. EBITDA margin came in at 12% compared to 9.4% in the comparable quarter of the previous year.

25:14 PAT was at INR 2 crores, up 14% year on year. Profitability recovery that we reported in Q1, driven by cost discipline, process simplification and tighter vendor management has been sustained in this quarter and positions us well for the full year. EBGC revenue for the quarter grew by 15% year on year to INR 14 crores. In EBGC, our volumes are closely linked to hiring cycles. White collar hiring was positive through the quarter, but uneven. Hiring was strong in patches and moderated post that. Growth was concentrated in specialized roles such as AI and machine learning, in GCCs and in sectors such as auto, while traditional IT services hiring remains subdued and BFSI was broadly stable.

25:59 For us, BFSI hiring is important as each new hire in this sector typically requires a more comprehensive background check. Our response to these market changes have been to build a more agile technology enabled verification model. AI integration is helping us reduce turnaround times and cost per check, which protects margins when volumes fluctuate and positions us to scale efficiently when hiring recovers more broadly in the economy. In audit and assurance, the large audits that were deferred from May into June and July were executed during this quarter, and we continue to see a healthy pipeline in sectors such as food, automobiles, etcetera. The BD and sales teams are now in place, and we expect to see their impact on client acquisition from this half onwards.

26:49 Alongside this, we are digitizing more of our compliance and business process services, such as trade promotion management, claims processing and master data management, which makes the service more scalable and less dependent on field manpower. I will now hand you over to Ram Praveen, our CFO, to take you through the financial performance. Ram, over to you. Thank you, Amitabh, and good afternoon, everyone. I will take you through the financial highlights for Q2 and H1 FY 'twenty seven. Starting with the quarter, revenue from operations for Q2 FY 'twenty seven grew 11% year over year to $8.12 crores compared with INR $7.29 crores in Q2 FY 'twenty six. The IFM segment grew 11% to INR $5.60 crores and the BSS segment grew 11% to INR $2.67 crores.

27:42 The revenue split between IFN and BSS stood approximately INR 68 and INR 32%, broadly inconsistent with the previous quarters. Consolidated EBITDA for Q2 FY 'twenty seven stood at INR 43.2 crores compared to INR 31.6 crores in Q2 FY 'twenty six, a growth of 37%. The EBITDA margin improved to 5.3% from 4.3% last year. At the segment level, IFM EBITDA margin was at 4.2%, approximately INR24 crores, and BSS EBITDA margin was at 7.7%, approximately INR21 crores. Profit before tax grew 47% to INR 34.7 crores, and profit after tax for the quarter was INR 32.1 crores compared to INR 19.8 crores in Q2 FY six, a growth of 62.

28:47 Earnings per share for the quarter stood at INR 4.8 compared to INR 3 for the last quarter last year. Now at a consolidated level, employee benefit expenses grew 10% to $6.28 crores, slower than the revenue growth and came down to 77.3 percent of revenue versus 78.66% in Q2 FY 'twenty six. For the first half of FY 'twenty seven, revenue from operations grew 10% year over year to $15.77 crores compared to INR $14.30 crores in H1 FY 'twenty six.

29:33 IFM revenue grew 11% to $10.84 crores and BSS segment grew 9% to INR $5.20 crores. EBITDA for H1 stood at INR 85.5 crores compared to INR 70.9 crores during last year, a growth of 21% with the margin improving to 5.4% from 5%. Profit after tax for H1 was INR 62.4 crores compared to INR 48.8 crores in H1 FY 'twenty a growth of 28%. H1 earnings per share is at 9.3 percent versus 7.3% of last year.

30:20 Moving to cash flows and balance sheet. Our net cash from operation operating activities for H1 was at 46 crores compared to INR 33 crores in H1 FY 'twenty six. As of September 2026, our cash and cash equivalents, including mutual funds and fixed deposits, is at $40.04 crores, and we have no long term borrowings. Return on capital employed is at 16.2% for H1 FY 'twenty seven. UDS continues to be a net cash company with net debt to equity is negative 0.21 lakh as of September 2026.

31:06 On headcount, our total workforce stands at 77,157, with 60,152 in the IFM segment and 17,005 in the BSS segment. We continue to progress on our finance and governance initiatives as outlined earlier this year, ensuring tighter controls, stronger FP and A capabilities and standardizing the processes across the group. I will now hand over the call back to our Chairman and Managing Director for his concluding remarks. Yes. Thank you, Ram. Thank you, Amitabh. Thank you, Elizabeth and thank you, Sunil, for your updates.

31:53 To summarize, H1 FY 'twenty seven has been a period of consistent execution for Updater Services with continued focus on improving our business quality, strengthening operational discipline and accelerating technology led transformation. Q2 margins improved across both ISM and BSS, while H1 margins remained stable in ISM and improved in the BSS segment. The organizational changes undertaken over the past year are also beginning to reflect in business performance. The opportunity remains significant, supported by recent economic activity, industrial investments, commercial leasing, implementation of labor costs and increasing outsourcing of integrated outcome linked services.

32:56 Our priorities for the remainder of FY 'twenty seven remain focused on four areas. First, delivering sustainable growth while maintaining discipline in customer selection and contract profitability. Second, improving margins through operational efficiencies, better reserve utilization and greater adoption of AI automation across our businesses. Third, strengthening Arnan's internal control, leadership accountability across the group and fourth, building scalable technology enabled businesses that can address evolving customer requirements and create long term competitive advantage.

33:49 We continue to maintain a strong balance sheet and a net cash position. With our credit ratings reaffirmed during this quarter, our capital allocation approach will remain disciplined, prioritizing investments in technology and capabilities, selective value accretive acquisitions and shareholder returns. As we enter H2, we are encouraged by new logo additions in the ISM segment, client ramp ups in ethylene, improving stability in matrix and steady growth in other Our focus will be on converting these opportunities into sustainable growth and consistent margin improvement.

34:42 With a diversified client base and a scalable technology enabled operations platform, we remain confident in our ability to deliver profitable growth in the coming quarters. With this, I would like to open the floor for questions. Answer session. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from Sakshi Pratap from Pratap Securities.

36:00 Please go ahead. Hello, sir. Thank you for the opportunity. I have two questions, sir. So first is what are the expected EBITDA margins for us for ISM and the VSS segment for the full year? And are we being impacted due to the new labor laws? So, Raghu, may I answer that? Please, please. Yes. Okay. So, Sachi, thank you. Thanks for your interest in UDS and for the question. So right now, we have a total EBITDA margin of for H1 of 5.4%. And we have a total EBITDA number of about INR 85 crores and a PAT of about INR 62 crores, 63 crores for the first quarter for the first half.

36:47 You could extrapolate that. We don't give forward looking guidance, formal guidance. But in the last quarterly call also, we had mentioned that, you know, you could... In... At that time, we had said you could multiply that by four. We have demonstrated that that was correct. In in fact, slightly better. So you could multiply this by two now to arrive at some kind of estimate of what the year will look like. We believe these margins are sustainable, even though we as I had mentioned when I briefed and as Sunil also talked about, there are some headwinds that we are seeing in, Dinev, in the global environment and in global, which is our which is our ground handling business. So in these two, there are headwinds that we are that we are foreseeing. But that would be a good estimate. To your second part of the question, which is on labor code. So the basic change that has happened during the quarter is the ceiling that has been raised from 15,000 to 25,000.

37:43 For the full year of the overall impact of, you know, if there is zero pass through, would have been about 5 to 6 crores, but there is substantial pass through. So we... At worst, it will be about between a crore to 2 crores, which is insignificant given what we are looking at. So far, given the momentum that we have and the numbers that we have already declared for h one. Got it, sir. Secondly, where are we on our acquisition which we planned year? So if you could throw some light on, you know, which segment are we currently targeting, approximate cost of that, etcetera. So as we have been giving commentary, we had a target that we pursued very diligently. But on valuation, the conversation fell apart.

38:29 And we did not conclude that deal because, you know, we are conservative acquirers. Right now, we are not in active conversation, but we are in active consideration of another opportunity. And we will update the markets at the right time. A deal may not happen this year, but we will update the markets at the right time. Got it, sir. Thank you so much for the detail. Yeah. You. Before we take the next question, a reminder to participants that you may press star and one to join the question queue. The next question is from Prateek Shah from Asset Capital.

39:23 Sir, I have two questions. Sir, where are the only Avon collections, and will we be recovering any of the 23 crores? So we are pursuing the... You know, all avenues that are there for the Avon collections of the fraud that happened. And right now, we have recovered a very small part of it, and a little bit more has also been deposited in the court by the accused. So we will update you at the right time because this is still a legal and a police process. And as it reaches its conclusion, we expect to be able to bring that back to our p and l.

40:09 Because as you know, we had taken the full impact being conservative accounting practice and for good governance. We had taken the entire impact. We, at that point in time, had said that collections remain uncertain. But today, we have line of sight for at least some part of it that we will recover some part of it. I don't want to give you a number right now, but we will see recovery in this. May not be May not be very, very high, but we should see some recovery, yes. Okay. Also, sir, I wanted to ask that as mentioned by you, we are seeing headwinds in global and the deviant part? How are we looking to grow further in these two business? And has global business improved in the festive?

40:57 So as our chairman had briefed in his speech, in global, the winter schedules have been cut by most airlines given high ATF prices as well as given the extreme disturbance in West Asia, which is where a lot of the revenues... You know, a lot of the airlines do fly. So therefore, there is a little bit of impact and uncertainty in aviation. But the the way we are trying to address that is to emphasize and to grow the other parts of that business, which is the school of aviation, which is where we train different kinds of staff that are employed in the aviation industry, including the security personnel and those kinds of things. So that is our response. Why we have to maintain our operations at all airports regardless of the number of flights.

41:45 But so as we said, I mean, we are watching that closely. We are trying to get larger part of the business in that airport by also talking to other airlines. So we expect steadiness to return in the fourth quarter, but we'll be able to update better when we look at the end of the third quarter. Thank you, sir. Congratulations and best of luck. Thank you. Thank you. The next question is from Jay Jay from JJ Capital. Please go ahead. Hi, sir. Thanks for the opportunity. So my first question is our tax rates are 7.6 in Q2, lower than last year.

42:33 So what are the expected tax rate for the full year? Hey. The effective tax rate will largely remain at the same range because we have estimated what will be the full year effective tax rate and accordingly have worked out for respective quarters. So we don't see a much swing in that rate for the one or full year Okay. And so just one more from my side. How are we looking from a long term point of view, say, five years from now? Where do we see UDS? So we have built a platform, and we expect that as we look to the future, UDS will, you know, start start accelerating its growth as well as its profitability as well as its value addition. So those are the three aspects that we are looking at.

43:25 Internal efficiencies and productivity is another area where we expect to start becoming one of the strongest players in the industry. I don't want to give you a number as such, but our growth rate of 11, 12%, which is what we have talked about in the past, should accelerate. So if that accelerates, then we will more than double. Even at the current rate, we will approximately double in in around five, six years. Yeah. And, sir, just one more. Like, what are the different parameters of growth we are looking in each businesses? So when you say different parameters of growth in each businesses, since we have nine of them, Could you could you be slightly more specific so that we are able to give you a better answer? That's the major contributor to our revenue.

44:13 Yeah. So UDS, of course, is the single largest, and IFM, of course, is the single largest contributor in terms of revenue. And there, the same three parameters that we talked about, and our chairman talked about that as well. One continues to be new logo additions and mining and extra revenue from existing customers, which is where we are very, very good. So that growth rate will continue. New logo acquisitions will accelerate. The second, internal productivity. We had talked about it in the past as well, where we have said that roughly 10 to 15 bps year on year improvement in margin should be possible because of this and because of improving scale and operational leverage. The third area that we have talked about in the past as well, again, our Chairman talked about that in his opening remarks, was the move towards more and more value added services, including MEP, including engineering services, production support services and the other. So those are our three directions.

45:09 For WSE, which is an important part of our IFM business, also continues to grow well and that has strong margins. So that's going going to be another area of large focus for us as far as my ISM is concerned, which is the largest single contributor to our growth. Noted, sir. So just last thing. Sir, what... Do we see any potential growth in the GCC in Iglala specifically? So GCCs are growing gangbusters, as you know. We already have about 2,400, 2,500 GCCs. People are projecting this number to double in the next four, five years. So we have an exposure to them through IPCs. Our attempt, of course, is to gain direct exposure to the GCCs also.

45:54 So... Yeah. Thank you, sir. Thank you for the insights. All the best. Thank you. Thank you. Participants who wish to ask questions participants who wish to ask questions, please press star and 1. The next question is from Vivek Desai from Investec. Please go ahead. Yeah. Hi. Wanted to know a little bit in detail about why do we have a lower tax rate, and how much should we expect... How long can we expect that to continue? I mean, the lower tax rate regime to continue. So our tax rate, as you know, in the entire industry is deeply impacted by employment creation and ATJJAA.

46:44 And, you know... But but we benefit less than some of the others. So to that extent, our dependence on ATJAA is not as much as some of the other industry players, especially in the staffing space. That said, employment creation remains at at current... At present a priority for the government, and all the statements are right now pointing in the direction of accelerating efforts for employment generation and employment creation. As long as that remains a priority, we believe that ATJ should continue or some form of of incentive for employment generation will continue. And therefore, we should continue to benefit. However, I just want to reemphasize that our profitability is not dependent only on ATJJAA, and our reliance could actually start coming down as well.

47:37 So but that said, our current tax rate should remain in this broad area as our CFO, Ram, just spoke about. Thank you very much. That was the last question in queue. I would now like to hand the conference over to the management team for closing comments. Yes. Okay. Thank you, all of you. Thank you, all of you, for joining the Q2 H1 FY 'twenty seven earnings call. On behalf of the management team, I would like to extend our sincere gratitude to our shareholders for their continued trust, confidence and support as we progress on our journey for growth.

48:29 As we look ahead, we remain confident in the long term opportunities available to UDS. We will continue to focus on execution, profitable growth and operational excellence, while remaining responsive to changes in the external environment. We also sorry, if you have any further questions, please reach out to us or to SCA, our Investor Relations adviser. You, all of you. Thank you. Thank you, everyone. Thank you. Thank you. Thank you. Thank you. You. Bye. Thank you very much. On behalf of Updater Services Limited, that concludes the conference. Thank you for joining us. Ladies and gentlemen, you may now disconnect your lines.