Ksolves India (NSE:KSOLVES) Q1 2027 Earnings Call

0:30 Good afternoon, everyone, and welcome to the q one f I twenty seven earnings call of Ksolves India Limited. We sincerely thank you all for joining us today. During the during this call, the management will discuss the company's operational and financial performance for the first quarter of FY twenty seven followed by an update on key business developments, strategic priorities, and the outlook ahead. This will be followed by an interactive question and answer session. Before we begin, I would like to remind everyone that the certain statements made during this call may be forward looking in These statements are based on the management's current expectations and assumptions and are subject to various risks and uncertainties. Actual results may differ, and we advise the participants to not play undue reliance on these statements. Please also note that this call is being recorded for compliance purposes.

1:24 Representing the management today, we have with us mister Rajan Srivastava, founder, chairman, and managing director, mister Umang Soni, chief financial officer, mister Manish Gulnani, chief technical officer, mister Dharpan Odichya, head of business transformation and consulting. I now invite the management team to deliver their opening remarks. Thank you, and over to you. Thank you. Thank you. Thanks. Welcome, and thank you, everyone, for joining our q one f y twenty seven earning calls. Before I begin, I would like to acknowledge a significant milestone in KSOLVES journey. We recently completed six years as a listed company, having made our debut on the NSE on 07/06/2020.

2:19 Over these six years, we have built a scalable technology services platform, expanded our global customer base, delivered consistent profitable growth, and strengthened our position as a trusted technology partner for enterprises worldwide. We begin f y twenty seven with geopolitical tensions and macro uncertainty that have made clients more cautious with technology budgets globally, and that caution has been visible across the industry. Clients are tightening budgets, delaying decisions, and rethinking their technology road maps while continuing to experiment with newer AI tools and delivery models that can deliver miserable business outcomes.

3:12 Against that backdrop, our consolidated revenue for the quarter ended 06/30/2026 stood at 41.4 TR. It is up 10% year on year and sequentially moderated by 3.7%. The sequential moderation during the quarter was primarily driven by reduced technology spending and the ramp down of selected engagements by certain large clients. As they recalibrated their technology investment in response to the prevailing macroeconomic environment and cost optimization priorities as some of these engagement ramp down occurred towards the end of the quarter.

4:07 We expect the full impact to be reflected over the next two, three quarters, resulting in some near term revenue softness. In response, we have intensified our sales and pipeline buildings effort to offset this impact. Also, are seeing mixed signals in the market with several customers who were previously cautious on AI adoption, now moving forward with new initiatives and awarding new business. At the same time, we are pursuing prudent cost management initiatives to protect the bottom line even in a period of softer sales with EBITDA for the quarter at 12.56 crore.

4:56 It is up 26.2% year on year and broadly flat sequentially. EBITDA margin expanded by three eighty nine basis points year on year despite the softer revenue environment. PAT for PAT for the quarter was 9.2 crore, up 43.3% year on year, to down 5% sequentially in line with the revenue moment. PAT margin improved to 22.2% from 71% in quarter one f y twenty six. EPS rose from 2.71 rupees per share to 3.88 per share. It is up 43% year on year.

5:48 In view of these volatile market conditions and that cautious customer spending environment, We are seeing globally, it would not be prudent for us to reframe... Reform the revenue guidance for the current financial year at this stage. That's it. We remain optimistic. We are watching market conditions closely, and we continue to pursue new customers and new market to build our pipeline for the year ahead and with multiple recent wins across our technology offerings. We have started our global sales leadership by appointing Eric Paul as a VP, head of global sales, Nasiv Sayed as the head of sales North America.

6:47 Both leaders bring deep regional networks and enterprise relationships that will accelerate Ksolves sales pipeline across North America and its key AIML, big data, Salesforce, and UDO service lines. We continue to target EBITDA margin as guided earlier in 25 to 30% range for the full year and quarter on quarter basis. AI enabled delivery continues to improve execution efficiency and enhance team productivity, enabling us to scale more efficiently while maintaining a disciplined approach to hiring. We expect EBITDA margin to move towards the upper end of our target range as revenue scale scale and demand improves with further potential for improvement in EBITDA margin through better operating leverage.

7:47 The near term environment requires patience and focused execution, and we are approaching it with exactly that mind check. Our long term positioning, client relationship, margin architecture, AI capability, and balance sheet strength all remain intact. FY twenty seven will be a year of measured navigation, and our priority is to emerge with a broader client base and a stronger deadline... Stronger deal pipeline and more diversified revenue profile that... Than we entered the year with. Conclusion is that we will keep working on increasing pipeline, getting more and more business. We will focus more and more on AI in...

8:43 And we will take more and more in AI initiatives. For coming two, three quarters or for this year, as I said, margins, we will... We we would be able to maintain between 25 to 30. And next two, three quarters, you will see... You may see softer revenue. But if it improves, then margins can go on upper side. Thank you, everyone, and thank you. I will now hand over to Uman to take you through the financials in detail. Umang, over to you. Thank you. Thank you, Ratin, and good day, everyone, and a very warm welcome.

9:31 I hope everyone would have got a chance to look at the earnings presentation and the press release by now. So I will now take you to the detailed financial performance for q one FY twenty seven. Starting, with the revenue performance, our revenue for the quarter stood at 41.4 crore with 10% Y o Y growth. And, on a sequential basis, revenue moderated by 3.7%. We got a much broader outlook recently from Ratin. So now coming on to profitability, despite the moderated revenue environment, we have maintained a strong operating discipline. EBITDA for the quarter stood at rupees 12.56 crores, growing 26.2% year on year and remaining broadly flat on a sequential basis.

10:21 Our EBITDA margin stood at 30.3% compared to 29.3% in previous quarter and 26.4% in Q1 FY 'twenty six. On a year on year basis, EBITDA margin expanded by three eighty nine basis points supported by the revenue growth and the focused cost optimization initiatives. This improvement was partially offset by the compensation increments, investments in AI capabilities and other strategic initiatives taken. On a sequential basis, while revenue declined, but the impact was largely offset through operating efficiencies and trimming of discretionary expense. The sequential margin remained broadly stable, demonstrating our ability to protect profitability in a soft revenue quarters.

11:11 Moving on to profit after tax. PAT for the quarter stood at 9.21 crores, registering a 43.3% year on year growth. PAT margin improved significantly from 22.2% compared to 17.1% in the previous quarter... 17.1% in the same quarter previous year. And on a sequential basis, that declined by 5% in line with the moment in revenue and operating environment. Coming on to a business mix mix perspective, our core IT services business remained the key growth driver contributing 98.3% of our revenue during the quarter. Our geographical diversification remains healthy with 82% of our revenue coming from overseas markets.

11:58 North America continues to remain our largest overseas market contributing 63% of revenue, followed by India at 18%, Europe at 6%, Australia at 3%, and rest of the world at 10%. From a balance sheet perspective, the company remains debt free with cash and bank balance of rupees 17 crores as on 06/30/2026. We maintain strong cash conversion and prudent working capital management, which provides us flexibility to invest in growth initiatives while maintaining shareholder returns. During the quarter, the Board has declared an interim dividend of rupees 4 per share for FY twenty seven, reflecting our confidence in the cash generation capability and long term sustainability of the business model.

12:46 Overall, q one FY twenty seven reflects our ability to deliver profitable growth despite a challenging demand environment. Our focus remains on disciplined acquisition, execution, improving operating leverage, strengthening client relationship, and maintaining financial flexibility. With this, I will now hand over the floor to operator to open the q and a session. Thank you. Thank you to the management team for sharing their insights and the detailed business update. We will now open the floor for the question and answer session. Participants who wish to ask the question are requested to use the raise hand feature and submit their questions in the q and a tab. We will invite participants one by one to unmute and ask their questions.

13:34 Let's begin. We'll take the first question from mister Pat Soda. Hello. Hello. Am I audible? Yes. Yes. Yeah. Good evening, and thank you for the opportunity. My first question is regarding the top 10 clients still contribute more than half of the revenue. Is the current slowdown concentrated among a few large customers or spread across the client base? So for this quarter... Yeah. I was cutting mine. This quarter, certain large engagements were run down and the impact of which, as stated by Ratan, the impact of which would largely be seen more in q two and q three.

14:24 So... But... One second. Out of 10, if you will see, then most of them are stable. They are increasing. They are planning to increase the business. They are planning to use the AI. But out of 10, two have... Two two customers have reduced suddenly their business, and they were with us for last three years. They have started with a very small amount of the world, but for now, they were large. Okay. And suddenly, they they said that they they want to stop the work, okay, because of this AI and all. And next year, they may think if everything goes well. So this is not something that they have reduced because we were working for them on the t and m project. Okay? So they have not just reduced reduced our work, they have reduced their headcount also.

15:28 Okay. Largely. Got it. Got it. Thank you so much. Thank you. Thank you, sir. We move... But one second. One one one thing I would like to add. I am in touch with these two customers, and they are saying that next year, things will improve. Okay. So if if everything goes well, then they will ramp up the project and work again. Got it. Got it. Thank you so much. Thank you. Thank you. Thank you, sir. We'll move on to the next question from mister. Yeah. Thank you, sir, for the opportunity.

16:17 So my question is, the two clients which we have mentioned right now, so is it that, those, those clients wants to try the AI in house and they are, that's why they are reducing their employee count and also us? No. No. No. No. This is not the reason. It... Actually, in fact, we are working for them heavily. We were working for them heavily with AI. Okay. Right? Thing thing... What happened with the geopolitical and means with the other internal reasons, they have decided to reduce the headcount worldwide. Okay. So that is impacted to us.

17:05 So AI, definitely, I would say that is not the reason. Their business decision was this. Okay. They... Well, for... With one customer, management got changed. Okay. So new management has taken this decision. And with another customer, they said that, they have some other losses. So, manage those losses, they want to reduce the headcount. So AI, definitely, it is not something that, they want to use AI. So that's why... No. We have already AI engineers. If that is the reason, they will hire engineers from us. Okay. Okay. And, sir, do we see any other challenges?

17:51 As you mentioned that our next few quarters can be a little dull. So so so you were referring only about these two clients, or you see overall demand scenario weak or some... There are some challenges, if you can share that? Okay. Sure. Definitely. So what happened... See, Apur, since, this this year, we have completed, six years listing. Okay? And 24 on, calls I have attended almost. Okay? And every time I was very excited to tell everyone that we have five large customer, 10 large customer who are are contributing 40%, 50% in the revenue. But there's a downside also.

18:37 Okay. If one or two large customer suddenly, they decide to ramp down or shut down the business, it will affect your stable business. Okay. My other customers, my other things are going very well. Okay? Even with the... If you will see the numbers, even with this number, the drop down in the numb... The source... Even the downsize of this number. Okay. We have added few more customers. We have added few more revenue in this quarter. Okay. But why we have said that software may be soft? I... Okay. Because we are moving one step now forward, and two step, we are already back.

19:30 Okay. So cover the the... That one step, it will take time. Okay. And if things get changed... Okay. Then maybe we will cover very fast that gap. Okay. I can see the pipeline. I have the pipeline. Okay. But I would like to be conservative. I don't want to give any false state... False hope. Okay. That's why I'm saying that for next two, three quarters, maybe it will be softer. Okay. But it is not something that we are not getting new business. We are continuously getting new business. My team is continuously busy attending new calls. Okay? And good thing is that now quality of the customer, okay, is improved.

20:25 Missed brand name. Okay? But because of these two losses, now we are in that situation, and we are talking this problem. Otherwise, things were definitely different in this quarter and for next quarter also. Okay. So so, like, do you see the current year to be same as the f l twenty six? Or In in terms of revenue. Revenue. Yes. Yes. In terms of revenue, maybe. But if... As I said, that if if things go... Will go well, it may change. Okay. It may change. But, yes, you are correct at some stage. You are correct. But margin will definitely improve.

21:16 It will not... It will be always between 25 to 30%, and it may go on upper side if we will get some more business. Yeah. A part of this. Got it. So so, like, what I understood from your last statement was that even we have lost few customers... Two customers and... But the margins will not be impacted. No. Margin will not be impacted. Reason is that we are not hiring, honestly speaking. Largely, we are very... We are hiring only on the requirement this is. And second thing, we are heavily using AI.

22:01 We are able to increase the output by using AI. And this is the fact that in future, we will... We may double, triple, or whatever the output with less number of the new resources. Okay. Right now, things are... We can say that developers' efficiencies in... Getting increased day by day Mhmm. Okay. With the help of AI. So so, like, have you... Like, I I remember from last couple of quarters of con call that we are implementing and bringing up the efficiency through AI with some some with some work, you know, in a day to day life. Right? So if... So have we measured something of... Is there something which which... Where we can see the improvement in the efficiency?

22:57 See, I can give you the answer, but I have my friend and CTO in this call. I will pass this question to Manish. Manish, can you explain that... Manish, may... Can you give the answer of this question? Sure. So so first, how are we leveraging AI? Right? So we are using AI in both non tech as a set functions. Across all the organizations, all the case solvers are, you can say, almost AI certified, including non tech ones. Right? We have been working on this initiative since almost more than a year, I would say now. We started with... You know, even before Cloud was there, right, we were using KSOLVES and other and those things. Right? Then there's... Today, there is Cloud, which is leading it. Right? This has been our, you can say, strategy for, you know, for quite quite some time, and that has now started giving us these results.

23:54 The developer efficiency, I would say, is almost 25 per... So what I would say is what one per... What four people are doing earlier. Right? Now that is being done by almost two people in in a very... I would say at a very high, at a high level. Okay? For some senior developers, it is triple. So one person is being able to do more than two people's work. Because being a senior person, he knows AI to be used in the right way. We are using AI for code development. We are using AI for, you know, writing your test cases, automating your, you know, your entire test suites. Then we are using AI for DevOps where your entire infrastructure is being scanned via AI. They're telling us to use these are the vulnerabilities.

24:47 These are the things that need to fix. Right? So it's like... For our security scanning using AI. And then we are also using AI for, you know, for a lot of, let's say, like, it's a nontechnical. Right? Like, we are bidding for RFPs. We are bidding for some projects. Right? We are building a sort of those. Right? So that is also being sort of, you can say, saving time when we are using AI for that. Okay. Then some areas where we have seen AI help us really a lot is... So, see, for certain certain, I would say, low level functions, AI works... You... It's like you are just replacing a human with that AI. But for certain niche areas, let's say, if I'm talking about, you know, big data. Right?

25:37 Just replacing a person with AI will not work because you need to have knowledge. You need to have that technical... Technology understanding of that. It's a complex technology. Right? So over there, we have our senior engineers who are now certified on the cloud use AI to do things that they were taking, let's say, maybe a week, you know, to do that. Right now, they are doing that within a single day. So that's how the efficiency has been brought into into us. Got Got it. Yeah. Thank you, sir. That's it from my end, and all the best, sir. Thank you. Oh, thank you, sir. We have a few questions in the q and a tab. The first question is you mentioned an international bank deploying the Ksolves AI hosted platform across its operations.

26:30 How big is this deal in revenue terms, and is it a onetime project or recurring platform income? Okay. So we have a... We have started with a very... With a small amount of the work. Okay? But when we have delivered the project, they were very happy, and then they have, opened multiple RFPs. Okay? And till now, I cannot, disclose the number, but we have one few RFPs, and few RFPs are in line. We don't know what will happen. But we have received the feedback directly from the management that they are very happy.

27:16 Regarding the AI project, again, Manish will let you know this... That how big it is without disclosing the number, but how big it is it can be. Manish can let you know. Manish, over to you. Okay. Alright. So this is... Think of it like... It's like one of the most, you know, leading banks in that region. Right? For them, AI has been... They actually want to be the forefront for, you know, for bringing transformation into the banking industry in their region. And they are actually at the... You know, almost the... From what we have seen in that region, nobody else compares to them in technology.

28:04 The the way that they are advancing. They are looking at using AI in across almost all of their entire banking functions starting from... Let's a customer wants to, you know, understand how to open an account. What are the products which are available? Right? Then if he wants to do, let's say, you know, what is my... Let's say, I've taken a loan. Right? What is my payment schedule? What if I want to reschedule that loan? Right? What if I'm applying for a loan, whether I'm eligible for that or not. Right? This was all being done manually. It is still being done manually. Quite a, you know, large area of it. Right? These are some of the uses I'm getting. Right? They are more than 50 use cases such, you know, like this. They are looking to completely bring in AI across all of these, and we are the principal, you can say, vendor for this.

28:58 We are helping them build this entire solution, deploy the entire solution. And the idea is that this will help the bank to position themselves, like I said, right, as the forefront for that entire region. No other bank in that region is even right now near to them. And that project is where we are... This is still in decision, but the the goal is that this will be almost... What I see is around... Almost a year long project. Year and long and important thing is that this is, I can say, excellent milestone for Ksolves that if we get... Will deliver this project, we will be first reference for Salesforce. We we we will be one of the good ref... Preference for the Salesforce if they will have any bank for AI implementation.

30:04 The Salesforce is directly involved in this. So this is one of opportunity in AI. We have other also, but you ask question about this one, so we have explicitly explained you. Thank you, sir. Now we'll move on to the next question. Your product business is still a small part of revenue. What is the strategy to increase the contribution from products over the next two, three years? And which of your own product do you believe has the biggest growth potential? Okay. In last con call, I have explicitly mentioned that now we are focusing only on services.

30:57 Okay? And in future, we will be completely service based company. We will not divert our focus. And you can see the result now that margins are improved. And in future, while we are confident that margins will improve, even revenue is softer. So revenue may be soft. Okay. Because we know that where we have made the expenses, okay, last year. And I was... I'm continuously just be... Saying in last few con calls that this year, these expenses you will not see, and you will see the margin improvement.

31:47 Even numbers are not changing. Revenue is, you can say, q on q or whatever is, not moving up. Still margins will be good. That is the reason. Second thing, that is the reason we are saying that if we will increase the revenue q on q, Okay. Then margin... Margins will go on upper side. Okay. So now the concluse... Conclusion is that of this answer that we are completely now service based company, and we will... We are focusing completely on services, acquiring new businesses, maintaining...

32:36 Continuing the new, old business at the same time. Okay. Thank you, sir. The next question is North America contributes more than 60% of revenue. Are we planning to diversify into Europe, The Middle East, or India? The... For Middle East, I'm not confident. In the last quarter, I have not seen any new business from The Middle East. And for the next few few quarters, I can again see... I can again see that I'm not confident we will get new businesses from The Middle East. But, yes, businesses which we have right now from The Middle East, they are continuing. Okay. They... A few businesses have yearly con...

33:30 Contract. They have renewed the contract. Okay. So old businesses are with us, but new businesses somehow, you know the situation. Okay. Now coming to your question, we have expanded, we are trying to expand our business in Europe as well as in Australia. Okay. So Europe, Australia, and US will be our major focus for the... For acquiring the new business. Okay, sir. The next is, have you done any layoff or it is related to the employee count because we have got some efficiency because of AI?

34:21 It is very direct question. Okay. Answer is that when people are leaving, we are not... Until unless they are... They have exceptional quality, we are not stopping them because we can achieve everything what people we are doing through AI. Okay? At the same time, I cannot say that AI will replace everyone, but... Because AI will need a control. Okay? And only humans are... Humans can control the AI. So humans will be always needed, but at the same time, most of the work will be done by the AI in future.

35:14 So that is the answer. Okay. So the next question is, what's the average time it takes for a new client to become a repeat customer? And what percentage of clients are now asking for AI as part of every new proposal? Almost every customer is asking AI for new proposal? Okay. Previously, what was happening that they were in wait and watch they were in wait wait and watch mode to understand that how much work they can get by the AI, and they can get... And they need humans for what part of the work.

36:02 Okay. And few customers are now in that position where they can decide, and I can give you one example. I have one existing customer. That customer has a work of approximately nine month estimation, okay, with a good team size, approximately 14 to 15. Project is requiring the angular framework. And, initially, there was a rumor in the market or we were talking even that the... That means for a React node at Angular for opens... I mean, for these technologies, these technologies will not be in the market.

36:52 Okay. But what we have realized that AI will write the code, but engineers will give the direction that what exactly they want done by AI. Okay. So customer has decided the project. They... He they... He said that use the AI to write code efficiently and in less time, but it should be monitored. It should be controlled by engineers. Sir, one more question. What percentage of revenue is recurring in nature? And can you clarify the nature of this recurring revenue?

37:38 Man, over to you. So almost, I would say, than 80% of our revenue comes from the repeat customers, and, this includes new additional work that these customers are giving us. So this changes typically every quarter or every, period, you see. But, more than 80% comes from the existing clients, then increase their wallet, share. And then we have some new, large key deal wins also in place, which also gets converted into the revenue. Okay, sir. So the next question is, many companies are still experimenting with AI. When do you expect AI spending to move from pilot projects to large scale deployments? I think... I don't know about others, but for us, it is already being implemented. I told you the example of the bank. Right?

38:32 That is a real use case which we are going to implement. Right? We have already implemented AI for one of very major, I would say, Fortune 500 telecom giant. Right? Over there, we have been working with them for almost any year. Right? Almost two and a half years now. Right? So for us, AI is already there. AI is already a reality. What what needs to be done is customers need to be aware of what use cases they want to do. As soon as the customer is aware that this is what we we know we want, some customers are... They take time to come with their use cases. That is where the difference lies. Those who are fast, those realize what they want, we are there to do that immediately. AI is there. It is being implemented. It's all due to, you know, us how fast can we sort of learn and, you know, adapt with that.

39:26 Sir, we'll take the next question from mister. He has some follow-up questions. Yeah. Thank you, sir, for the follow-up question. Sir, I was reading somewhere, like, these days, the the service based companies are facing one one challenge or something that the token cost to use the AI is much more than the employee cost or to hire employees. So want to know your views on this, and how are the things going in Ksolves? And, again, like, have we... Like, we have taken the token cost also in our margins, then we say the margins would be same or much better. Answer of your first question, tokens cost are not higher than the employee cost. Okay.

40:16 It is less, first thing. Second thing, it can go up if people will not use smartly. So in Ksolves, as Mani said that everyone is Anthropic certified, and very soon, we will be official partner of Claude. Okay. So everyone knows that how smartly we should use the token. So in our automation, we are using tokens very efficiently. Now the the next question is that, is this affecting the margin? Yes. Affecting the margin means it it is added in the expense. Okay. And we have provided enterprise cloud license to everyone. But the benefit which we are getting with the cloud, it it is more than what we are spending on this.

41:09 Okay. So I say... I can see clearly that whatever we are spending for a cloud, okay, it is very beneficial and very fruitful. And it... That's why I am very confident that in future, we can control and we can improve the margin. Thank you. Oh, thank you, sir. The next question is, in service space, don't we feel threatened by the larger guys who will now be chasing the smaller deals because of revenue deflation and because of the wider breadth of service? Can you come again? Can can you repeat the question, please?

41:55 In service space, do we feel threatened by the larger guys who will now be chasing these smaller deals because of revenue deflation and because of the wider breadth of services?, would you like to answer this? So Yes. Okay. Yeah. Let me take that. Right? So see, yesterday only with me and Natumar discussed on that. Right? Typically, larger players will not be able to sort of deliver on the level of project that we pick up. Because it is still very small for them. Mean, the whole larger players are talking real larger players. Right? They will still not be able to pick up these projects. Right? Why? Because their costs are very high in terms of deployment of resources.

42:43 We will be able to deploy, let's say, four resources. Right? They will not be able to pick up a project, let's say, without... You know, with... I I mean, mean, that's just too low a deal for them. They will be... Them let them talk about any of the big players. Right? They will be taking, let's say, 50 to 60 people per project minimum before they even think about that. Right? People or or the organizations which are which are of our level, they will not be able to sort of pick this budget because they need a lot of skill. AI cannot replace certain, you can say, experiences. Like I said, right, for niche skills, you will still need a person who has experience on that technology to be able to deliver that project successfully. You cannot assure that AI will deliver that using a junior engineer. It needs certain level of competency.

43:33 That is what companies of our level will be having a challenge to deal with. Right? We are niche in certain areas. We are very good in delivering those, for example, it's a big data related stuff. When, again, going back to your question, right, larger companies, they will still be not able to deliver because their inherent cost are still going to be very high even if they use AI. So I do not see a challenge per se from that perspective. Yes. So adding here that they use the AI. We are already using the AI cost. Their cost will be higher than us. The reason is that we are...

44:19 As Mani said that we are working on the niche technology, and I have explained this in my last... All last few calls. Okay. That we are working on the big data, the AI, ML. Most of the... Because what Mani said that yesterday, was talking to Mani. We were... We had a discussion. We were... We had a discussion on one big data project. Okay. And I was saying that, Manish, who will do this? Okay. If we we are not going to do this at this cost, Manish was saying that he was... He he took the name of one MNC. Okay. I said that they cannot do. Okay. So this is something answered that large player cannot give us a competition because tech...

45:05 The technologies which we are working are niche. Sir, I think we have follow-up question from mister. Sir, please, if you can unmute yourself and ask the question. Yeah. Hi, team. Thank you for the opportunity and solid set of numbers. So just a follow-up to it. The worry comes from, like, now we are diversified into, six, seven odd verticals across the geographies. So, and now, that we are 100% focused on services. So where do we see ourselves or see KSOLVES in, say, five years sort of journey or in a long term trajectory? Because right now, larger guys are not, you know, a problem for us. But by the time we start chasing it, is, like, is there, like, any niche areas that we focusing on or any sort of strategy that you can share which could give us some, vision for next five years? Yeah. Thank you.

46:03 Before next five years, it is a very tough question that I I should say you, but what what we will be after next five years. But one thing I'm very confident that we will continue working hard, and we will always try to maintain the margins. And if everything goes well, then we will give a good year on year growth as well. Okay. This is, I can say, five years. And in five years, if everything will go well, then maybe if we will do some small acquisition also. Right now, we don't have any plan, but in future, if things will improve.

46:53 Okay. And what was the... Another question. I think I missed one part of your question. Yeah. So... Yeah. So one was... One which is being addressed. I got that. I I got I got... So new verticals, we are planning to start. When we have started working in that direction, for example, cybersecurity, we want to start as a new vertical. We want to start this SAP because right now we are very well know know... Very well known name in ERP in India, okay, for UDO.

47:42 Okay? But UDO is for small businesses. We want to target for large businesses also. And we have all the expertise which you need to implement ERP. Okay? So we have started planning that how we can start a new vertical in SAP also. So SAP and this cybersecurity. Okay. These two things you can say that this is in my list that I want to... We we would like to start this new vertical as soon as possible to generate new source of revenue. Just to add what Ratan said earlier. Right? Your answer for five years. Right? See, we are a core technology IT service company. Right?

48:31 Five years, if you talk about today, is, you know, twenty years, you know, if you talk and compare. Right? Every year, technology is changing very rapidly now. It is... The growth and the change that technology brings now is exponential. So five years become the very long term. What I'm saying is that it would have been twenty years if you talk, you know, earlier in eighties, we think what we'll do in next twenty years. Like that now. That is now five years for us. So what has been our core strength has been... It it is the adaptability. We We have have always been working on the niche technologies. We have always been adapting to the technologies as they have been coming. That has been our core strength. Based on that belief, we have been... You know, based on that strength, we are here today.

49:19 And that has been our, you can say, you know, core strength. And because of that, we believe that the next one, two, or three or five years, right, we are going to be again progressing very... In a very... As a very strong company in terms of technology. And like I said, technology will keep evolving. It is evolving every day. Us, we need to adapt to that at the... At a faster pace. Those actions we are taking today, we are leveraging AI. We are getting people certified. We are picking up technologies where we see the future lies. I think, you know, that should be sufficient enough for us to make sure that we are, you know, profitable enough in in the long run.

50:13 One thing. I think we're talking about the numbers. As I said in the last con call that we were... We will try to maintain year on year 18 to 20%. Okay. So, Unfortunately, whatever happened this time to customers, we lost. Okay. But in five years, most of the time, most of the... In five years, q one... Sorry. Year on year, we would like to maintain this 20%. Not this year. After this after this year, 2627. Again, we would like to maintain 20% minimum growth and with 30% margin. Margin, we will keep maintaining.

50:59 Growth this year, I I said that it will be soft, but again, we will recover and we will cross 20% after this year. That that is my plan, and let's see how it goes. Thank you so much for the answer. I totally understand, and thanks for the detailed answer. This year, unfortunately, my plan was that this year, again, I will give 18 to 20%. Last in call... Con call, I said, okay. But because of these two losses, okay, things got changed. Okay. So... But I have a control on the margins. I have... That I can assure you. And after this year, once things will improve, we will again start giving 20% to on our per side growth.

51:53 Thank you, sir. And one last thing, any color on the deal pipeline or number or ballpark number if you can provide? It's okay if you don't share it, but if you can share, then it would be great to understand the certainty. I can... Sure. Sure. But I can share you that I have one deal in the pipeline where the size is 300 k 300 k. Another one is in the pipeline. The size is 250 k. So I have approximately 1,000,000 US dollar pipeline at this moment. And if all those things get confirmed, I can say that I have enough amount of the work. But problem is that even if I get all the projects, okay, that we cannot complete in one quarter.

52:44 It will take at least two quarters. Okay. For now, I have enough pipeline, and still I have two and a half months for this quarter. Okay. From the next quarter, if things get... If... From the next quarter, I can see... I can say that if everything goes well, you will see the improvement. Okay. But covering this... Covering these losses done by these two customers will not be very easy. Understood. Thank you, and all the best. Thank you. Thank you, sir. Thank you, everyone, for joining us today. On behalf of End Portal, I would like to express our sincere gratitude to the management team of Ksolves India Limited for taking the time to share the company's performance, strategic initiatives, and outlook, and for addressing the investor questions.

53:52 Let me conclude. To to Yes. The first thing that for this year, we will try to maintain the same... We will we will maintain the same number what we have done last year. And if things goes well, we may increase revenue by four to 5% year on year maximum. Okay. But after this year, 2627, we will again recover everything, and we will go with the speed what we have done in the past by maintaining margin 25 to 30% year on year, and quarter on quarter '25 to 30%.

54:42 And we will try to... And if things will go well, you will see margins on upper side of 30%. Uman, would you like to add here anything in conclusion? No. No. That's fine. I think everything is well covered. And for the guidance related to next financial year, we'll again revisit in the March when we have better clarity. Correct. Correct. Thank you. Thank you. Thank you so much, sir. I would also like to thank the participants for their active engagement and thoughtful questions throughout the session. If any question remain unanswered, please feel free to reach out to us on the email IDs shared in the chat box.

55:30 A recording of this earnings call will be made available in due course. Thank you once again for your participation. This concludes today's earnings call. You may now disconnect. Thank you, and have a wonderful day ahead. Thank you.