Thank you. Good afternoon, everyone, and thank you for joining Q1 investor and analyst call today.

We are pleased to report a strong start to FY 2027. During the quarter, our total income grew by 28% year-on-year to 1,925 million, ₹1,925 million, while EBITDA increased by over 40% to ₹504 million, taking our EBITDA margin to 26.2%.

Profit after tax grew 28% year-on-year to ₹320 million, with PAT margin remaining healthy at 16.6%. Of the 28% growth in total income, approximately 13% was contributed by the Cryptas acquisition, while the balance reflects healthy organic growth across our core businesses, led by continued strength in our enterprise solution portfolio.

Enterprise solutions remained our primary growth engine, growing approximately 50% year-on-year and contributing 65% of total income, while our services business also delivered growth of around 5% year-on-year, supported by new customer additions in the United States. International markets now contribute 60% 66% of our revenue, and we continue to see encouraging momentum across Europe, North America, the Middle East, and Africa.

Europe was particularly encouraging this quarter. Through Cryptas, we achieved our first sale of eMudhra's certSIGN certificate lifecycle management platform to a large German data center customer, while also securing the first emSigner deployment integrated with PrimeSign trust services for an Austrian city municipality.

This is an important milestone as it validates product market fit and demonstrates our ability to successfully cross-sell the broader eMudhra platform into the Cryptas customer base. Cryptas contributed approximately 200 million of revenue during what is typically a weak quarter in Europe.

Our trust service business saw a temporary decline during the quarter following the transition to a new global security standard for digital signature tokens, which comes into effect in September. As customers and channel partner prepared for this transition, demand for legacy tokens reduced, resulting in a temporary impact on trust service revenue during the quarter.

We expect this to normalize as the industry completes the transition. On the innovation front, our R&D investment remained tightly aligned with the evolving cyber security landscape.

During the quarter, we introduced cryptography bill of materials, or CBOM, analysis within certSIGN, enabling enterprises to discover where cryptography is deployed across their IT environment and helping them prepare for the transition to post-quantum cryptography. We believe increasing regulatory and industry focus on post-quantum readiness, together with the need for organization to inventory and modernize their cryptographic assets, create a significant long-term opportunity for our certificate lifecycle management and the PKI platform.

We also continue to strengthen our broader product portfolio with AI-powered capabilities in emSigner and the commercial launch of privaTrust consent management modules. Looking ahead, we continue to believe that cyber security and AI are becoming increasingly interconnected.

As enterprises deploy AI at scale, trust, identity, and cryptography become foundational infrastructure. Our five-platform strategy positions us well to capitalize on these structural trends while continuing to expand internationally.

Finally, from an outlook perspective, our guidance remain unchanged from what we shared in the previous quarter, that is to achieve an organic growth of 18% and work towards achieving a PAT growth of 25%. We remain focused on driving profitable product-led growth, expanding our international footprint, executing our UAE trust service launch, and maintaining disciplined EBITDA and PAT margin while continuing to invest in innovation.

With that, let me hand over to our CFO, Mr. Ritesh Pariyani, to walk you through the quarter's numbers.

Thank you, Chairman. Good afternoon, everyone.

I'm pleased to share the highlights of our Q1 FY 2027 financial performance. Our total income for Q1 financial year 2027 was INR 1,925 million, marking a 27.8% year-over-year growth.

Gross profit for the quarter grew 36.4% year-over-year to INR 1,103 million, with a margin of 57.3%. EBITDA for the quarter was INR 504 million, registering a 40.4% year-over-year growth, with a margin of 26.2%.

Profit after tax for the quarter was INR 320 million, reflecting a 27.9% year-over-year growth, with a margin of 16.6%. Now coming to segment performance, the enterprise solution segment generated revenue of 1,623 million, while the trust service revenue was INR 284 million.

That concludes my remarks. Thank you, and we may now open the floor for the question-and-answer session.

I think there are some questions.

Hi. Kaushik, wanted to understand about the privaTrust platform.

Is this product live? If you can help us understand what kind of deployment opportunities you are seeing for this platform as of now?

Yeah. Product as you know comprises of many modules.

This is mainly to cater to the data privacy and consent management. We're already live with consent management capabilities, which we are demonstrating and doing a lot of pilots, proof-of-concepts, and very soon a few wins as well because India, as there's a DPDPA act, and people have to implement.

Large organizations basically get I think time till the end of the year or sometime next year, and many other organizations have to implement. The product capabilities also involve additional capabilities of how do you discover and classify the personally identifiable information in your landscape, that includes storage in files, folders, databases, etc.

These are the incremental modules that will very soon be kind of launched. It will encompass consent management, data discovery, data classification, and also how do you handle personal data in the context of when you send it to third-party vendors, like your CRM vendor or whatnot.

Got it. See, this is a new addition to our product stack, right?

How should we think about over a period of say three to four years, what's the kind of opportunity for this kind of platform? Not just from an India perspective because you covered a lot of other regulations even Europe, China, etc.

How should we think about opportunity in India? When do you even plan to take this product abroad?

Immediately the focus is India because there's a DPDPA act, and people have to comply. Anyone dealing with personal data, and particularly those that are B2C focused have to kind of do it more quickly.

Those that are large obviously have a timeline. Means we are working towards opportunities.

We may get a better sense of the direction in a quarter or two, at which point we may be able to sort of quantify where this can head. Obviously the TAM is large because everybody in India has to implement.

Slowly once we get some foothold here, we will take it to other markets where these privacy regulations are forming or more nascent in their adoption.

Got it. Very clear.

Also, you mentioned in your press release about the trust services in UAE. By when do you expect to get the QTSP license in UAE?

If you can just help us understand what exactly are we building here. Is it like an Aadhaar-equivalent eSign along with UAE PASS, or is it something beyond that?

Hi. This is Arvind here.

Hi.

Yes, hi. Hi, Surbhi.

To answer the first part of your question, we're essentially the final step of the process to getting the license in terms of license application and such. We expect that to be completed sometime towards the end of this quarter to beginning of next quarter, where upon completion, we should be able to launch the respective service.

From what it is, it is basically similar to signing the eSign, Aadhaar eSign type in India, but with the local identity ecosystem predominantly meant to be sold to the local market for the banking and several other segments that we operate in.

Okay. Just for my understanding, since we have a large banking customer base already there, does this product actually complement our emSigner offering in UAE?

It's meant to complement our emSigner offering in UAE. Obviously, the process of embedding this in banks and regulated entities is a timed process.

It will happen over a duration. We are in the early works of getting that set up and up and running right in terms of the process of go-to-market as well.

Okay. It's more like a retail product, but will also get integrated with emSigner.

Is that understanding correct?

I'm sorry?

It's more like a retail Aadhaar-equivalent signature and then will get integrated with emSigner as well? No,

it's not a retail product. It is enterprise-oriented in the UAE market.

The technical characteristics of the product are similar to an eSign product here, but the actual market for this product, it's not a retail-oriented offering, it is enterprise-oriented offering.

Even here, Surbhi, if you see Aadhaar eSign, though finally the retail customer sign, the sale is predominantly to banks and the NBFCs and all that. Similar thing will happen there also.

Yeah.

Got it. Got it.

Sir, on the trust side, I had one question. With this CCA mandate to move to FIPS 140-3, right?

What I understand is that these tokens manufacturers need to recertify themselves. Just wanted to understand the supply issue that we faced here, were we able to solve that?

Is it largely behind us? From Q2 onwards, can we see the trust business in its normal course of growth?

Now, in this token, mainly the ePass token was the major token. Then ProxKey token, but ProxKey, I don't think they are getting recertified.

The ePass token, they have submitted the application for recertification, everything is done. It is a little bit pending from the CCA side.

Then the other one new token has come called the Innate token, which is already certified, but they are not able to produce in volumes. That's where the capacity is very low.

Mostly by September, this ePass will be able to get certified, and then again the token volume will increase.

Got it. Just one last question.

Wanted to understand how much was the revenue for Cryptas in this quarter?

₹20 crore.

₹20 crores. All right.

Thank you so much.

Hi. Good afternoon.

I have two very quick questions. One is relating to the trust services which we have already spoken about.

I just understood that the things are going to get streamlined by March, sorry, by September. This means that even the Q2 will get impacted both from top line and bottom line perspective.

At least that's what my understanding is, is that right? My related question to this is, is it only the matter which you explained is a reason for downfall, or is that some competition pressure also, which is kind of driving our volumes down?

If you see, our general volume of token sale in a quarter was almost 8-9 crore. Or that was the volume.

Because this time, and everybody was stocking. This time the partners are all not stocking it because it is expiring by September.

That's why almost ₹5 to ₹7 crore volume got less. In the token the profit is not much.

On an average Mudhra's margin may be 10% or something like that. That's where while the top line may continue to be less during the next quarter also, but the bottom line, it doesn't have much effect on the bottom line.

Okay. All right.

My second question, sir, is I know we have grown fairly well when it comes to international enterprise solutions, but when we get into segment profitability, the margins over there are far lower than what we see in the domestic side. How do you see that over a period of time, sir?

Now,

if you see international, it consists of two, three elements. One element is the services business, where obviously because in the product business gross margins are 70-75%, in services business, it may be sometime 18%, 20%, like this.

That is one area. Which is again, if you see last year itself we have told it is around ₹150 crore kind of thing.

Then the other thing, the Cryptas business, again, it is roughly around 100 crore business, which was not profitable at all. Gradually, it is improving.

This year, we expect profit. Third is our own product segment.

In our own product segment, the profitability is even better than the Indian business. Combining all this thing put together, the overall profitability at the segment-wise profitability limit becomes lower compared to the Indian segment profitability.

Over time with Cryptas again becoming profitable and our own product segment increasing over services segment, the profitability will improve. This is one side.

The second side is because it is a new attempt in several markets, several senior executives had to be put. The senior executives are very costly, $200,000, $300,000 per person, like that.

That is another thing. That will again get offset when the volume improves.

Over time, it is likely to improve.

Sir, the Q1 margins stood at almost 20 odd percent, a little over 20 odd percent. What is the outlook we have for the whole '27, sir?

Whole 2026-27?

For international business.

Separately we have not put what is the profitability for that, but overall we are expecting the 25% growth on PAT and then 18% growth on the top line.

Okay. Because

little bit here and there it will adjust.

Got it, sir. My last question is that when I was going through the financials, at one of the places it's saying that some of the subsidiaries contributed a consolidated net loss of almost 4 odd crores.

What is this loss about and are we expecting that to continue or it will settle down over a period of time?

Loss of how many crore?

4 crores, sir.

4 crore, predominantly it will be the European subsidiary BV. Because in BV, some legal expenses were incurred and all that.

Now the Cryptas is under BV. When Cryptas become profitable, that will also become profitable.

Apart from Cryptas, independently in BV we have appointed a senior sales person in Rome, and he's chasing several leads. If even one or two materializes, it will turn profitable.

We are not expecting the loss to continue in the current year.

As far as Cryptas goes, we are very confident of making it profitable in FY 2027, is that right?

Yes, yes. Because already one sale to data center has happened of our certSIGN product, and another sale along with PrimeSign is one of the subsidiary of Cryptas.

That has also happened. With that, we are very confident.

Then the Cryptas product sale also happened in our other geography.

Okay. Got it, sir.

I think that's all I have. Thank you for this, sir.

Hi, hi, sir. Arvind, just wanted to understand how's the outlook for the US products business?

Can you give us some qualitative understanding as to how the lead pipeline is, what are the new initiatives? Now we've rebranded both our products, as well as got our data center.

We have now three locations that we are in. Now moving forward, how is the lead pipeline?

What has been the broad feedback from the customers? That would be great.

No. Thank you for that.

I think the US business on the product side, we see reasonably good growth in the lead pipeline and the initiatives that we're doing. To quickly put some sort of view to this, I think we've already reiterated the university federation, InCommon, which was something that we won last year.

More and more universities are getting onboarded into this, which brings greater brand visibility to us and the certSIGN brand within the context of the North American markets. On the one side, we're trying to go deeper into that segment, see how further we can mine that particular segment for more of our offerings, more of our solutions, add-on things that we can position within that federation of the community and maybe other universities also outside of the federation.

On the other side, we're also have active lead initiatives going in and conversations in advance stages on some IoT-related use cases on PKI. These are sometimes industry agnostic, but in this particular case, some of them are in healthcare and some of them are different.

We see that we are able to add some value here with our stack in terms of bringing trust at a device level. Third major element that we're working on is general pipeline building and lead generation and actively in the upper mid-market segment and some of the lower enterprise segment within US, and we see some positive conversations there around SSL, trust, and all of these things.

With the main agenda in US being that with this coming of the 47-day expiry of SSL and then the post-quantum shift and these sort of trends playing in, there is a general increased awareness around what we're doing and reception around our services and things that we have to offer. I think the good local brand and the data center and everything you alluded was some of the baseline requirements for us to be able to have all these conversations and sort of build a healthy pipeline and lead generation and get into these engagements as we are today.

Do you feel somewhere later this year or somewhere next year, we will start seeing better traction and slightly better clip of growth, especially in the US products business as we settle as InCommon kind of gets implemented? Just wanted to clarify, has that university business already started or is it something in the pipeline this year?

No, the university business has already started, and that has been ongoing. I think generally we have the growth rate in the enterprise segment of about 25%, which we are maintaining.

The outlook is positive, but there are deal pipelines that take some amount of time in North America, especially when you're talking to this segment. Obviously, there are several factors.

What we know beyond what we may not know, right? We factor in all this when we say that we're growing at a certain rate.

I can say that the outlook definitely looks positive. The pipeline is growing well, and we have a captive client base that we can expand upon, it's more meaningful in terms of what further we can achieve.

I think that we are in the right direction. Srinath,

one more thing is that university network, already we are issuing 1,000, 1,500 SSL certificate every day. It has already started.

Only the momentum has to further improve.

Exactly.

Got it. Just wanted to get a sense on seeing the deal wins on SecurePass, it looks like that business is actually growing faster than our top line.

What is working for this business, especially in India? If you can highlight some key saliencies or use cases.

Want to understand privilege identity, privilege access management. Where's the growth actually coming in?

Again here, could you give some sort of outlook as to how the next 12, 18 months look for these set of products, which seem to be growing on the pace of it seeing all the wins we have, sir?

SecurePass in India, two, three things, right? One is there is compliance mandate by central bank and capital markets regulator on stronger authentication.

All banks and capital markets entities are forced to basically improve their cyber security posture. The second is the deal values are much larger than even certSIGN.

Typical SecurePass for a large bank or a large government entities in the range of ₹4-5-6 crores to start with and probably higher. The third thing is privileged identity, privileged access management are again becoming compliance mandates not only from regulation, but more from voluntary cyber security posture because many entities have recently experienced data breach.

Typically, a data breach happens only when a critical administrator privilege or a credential gets compromised, right? These are the three trends that are driving more and more SecurePass adoption locally.

Which is why given the scale of implementation we have done here, we're also looking at taking it to adjoining markets like Philippines, Indonesia, as well as Africa. To some extent now recently, some conversations have started in Middle East as well.

The idea is to expand the reach of this product to other markets apart from India. Outlook

wise quite positive

because many more deals in pipeline are there in the Indian context itself, where many are under RFP evaluation and various stages. Once international picks up, maybe the growth can be kind of maintained at a fairly aggressive clip for the product.

Sure. If we were to implement the full suite, including PIM and PAM and the works, these deals over a period of time could be north of 10 crore engagement per bank?

Or just to get a feel of how large each of these implementations can be?

Yeah. That deal value is possible per large bank, right?

Mid-sized bank may not have that kind of spending capacity, but definitely large bank, government, central government agency, right, critical data center installations for state governments, etc., have that kind of deal value capacity for the product.

Got it. Last one on this, is defense also a market for this product?

Have we been engaging with the government on this, or is it largely banks and related?

No, defense also because already we have defense agency that is a customer, where they have implemented identity access management across 200 applications that are internal. The conversations are going on with various other main defense as well as other sort of ancillary agencies of defense.

Got it. Thanks, Kaushik.

Just a last question on Cryptas. We needed to kind of insource the CA code or I'm not technical, some way we could backward integrate on the product so that we could save cost and also move some of the service cost to India so that we can support them from here.

Have all those moving parts been put in place and is that reduction in loss because of those initiatives and where do you see all of this playing out from Cryptas loss management?

Cryptas was not really cost saving from just moving everything, because already we are developing IP here. The main thing was earlier, if you remember the whole narrative, they were using third-party products that were competitor products to ours, and the idea was how do we substitute that with some of the Cryptas's own IP.

That integration effort was what was done over the last sort of six, seven months. The proof of the pudding is now the fact that a large German data center operator has now taken the stack, Cryptas's stack, backed by full eMudhra stack of our CLM, our CA, and everything.

Similarly, PrimeSign, which is Cryptas's subsidiary, took emSigner along with their signing service, which is a qualified signing service across European Union, for a city municipality. These are first two very, very important and critical wins that hopefully lay the foundation for sale of our software completely along with Cryptas's IP to their customers, backed by local support.

All of the IP development anyway continues to happen out of India.

That will save them from purchasing the Keyfactor software as a back end, to that extent, the cost saving will be there. Wherever they substitute our certSIGN emCA instead of Keyfactor product, there the cost saving will be there because to that extent transfer pricing will come to India.

Thank you, sir. Thanks, guys.

Congratulations on a good set of numbers. Thank you.

Thank you.

Thank you, sir. Thanks for the opportunity.

My first question is on the enterprise part of business, obviously, is the largest chunk, and it has been growing 50% YoY. If you can provide what is the YoY organic number for the enterprise.

Within the enterprise, the shift is mostly happening largely towards cyber security and towards selling direct. Within that, how we see the growth happening for the enterprise piece?

Also, if you can elaborate more on the sale that you have done to the European data center. Is it the first data center client that we are having?

What is the opportunity in terms of selling data centers? What is the size of the contract if you can provide that?

On the product, if you take just the product growth and how much was organic, how much was inorganic, as we outlined, Cryptas's number is ₹20 crore, right? The base was about going from I think 80 to

last 18 to

20. About 25% contribution came from Cryptas's numbers, 25% was the organic growth in the product segment.

That is I think answer your first question. On the second one saying Cryptas, what is the opportunity from a data center standpoint and what is the opportunity for Cryptas generally as a whole, Cryptas has a number of marquee customers, particularly in the German-speaking European market.

This is the first one. They're also already having existing customers within the banking, within insurance, within oil and gas.

All of these now become prospects, and they're chasing a fairly good pipeline of customers selling our product into their customer base. Hopefully, we see some of those results come to fruit in the next few quarters.

Three, from a data center-specific standpoint, because again data centers require access by people into various systems to manage them, and because these are critical assets and critical infrastructure, over time, the security posture and security requirements of data centers and people accessing into them will need stronger authentication, which is where our solutions come in, right? It's a fairly large addressable market.

I don't know exactly how to quantify it, but we are chasing similar opportunities in many other regions, particularly on securing access of people into data centers.

Okay. Also the connected question to the AI and data center.

Obviously, with more and more enterprises adopting the agentic solutions and the number of agents will increase significantly in the system over the next one to two years. How do we want to capture that?

Obviously, we are having an solution for agentic authentication, tracing the agents, and also what is the opportunity there and are we getting any revenue from there as of now? Yeah.

I'll first address what is the problem statement that agentic AI basically drives, and then probably talk a little bit about the opportunity and where we are in terms of the product and maybe adoption. AI if you look at it broadly, the GenAI is operating at five levels: infra, the application, etc.

One critical layer of that is what is known as AI trust and governance. Because if agents are communicating with one another or communicating with systems, then you need to identify the agents.

Agents typically cannot enter like a username, password, or an OTP, therefore they need some kind of an identity which is like a digital signature certificate attached to the agent, so that they can securely communicate, number one. Number two, if agents start taking decisions on behalf of humans, let's say if an agent decides to give a loan and quantify that loan, then again there is some level of traceability, verifiability, and tomorrow what is the legal validity or recognition, etc.

Those are all topics where people are framing policies. Again, that requires usage of digital signature certificate.

As agentic AI deployments increase, these two become critical, where digital signature certificates and identity to agents become a critical component. Number two, what is the opportunity?

Over time, I think this is the future where agentic AI and GenAI adoption will likely ramp up in enterprises, although it is still fairly early stage. As these ramp up, we will obviously be a beneficiary, and AI we hope is a structural tailwind and believe that it's a structural tailwind to our business.

Number three, where are we in terms of adoption? Probably pretty early because very early conversations on at least understanding what is a risk of agentic AI is starting to take place.

This will be followed by at least some kind of pilots in terms of how do we now secure the agentic AI landscape, and then followed by over time, better adoption. We are still in pretty early stage, it's hard to quantify what could be the opportunity right now.

Maybe a year down, I think we may be in a better position once we start at least doing some pilots to be able to quantify.

Are we having any specific products to cater to this kind of an problem, or it will be sold as a part of the existing product suite that we are selling to data centers and to enterprises?

Our existing product suite, namely certSIGN and SecurePass, are being significantly strengthened to capture this. The other thing is there is also a lot of interesting work done by various startups in the US in the agentic AI security space.

Some of them have come to our attention as well. If at all some bolt-on capability that we may be missing needs to be added, that may be an area that we may pursue sometime down the future, although nothing immediately, right?

We are doing active R&D plus looking at various ideas that are there in the market on how identity, security, access in the context of agents will need to be enforced.

Just last question from my side. In terms of the EBITDA margins that we have seen for the quarter, it has shown significant improvement YoY.

If you can provide the bridge in terms of what contributed to this expansion, maybe in terms of the different products, geographies, if you can provide some bridge. Also, what is this sustainable range?

Are we seeing some further expansion that could happen as we sell more product-based solutions? Now,

as I said, this quarter margin slightly improved because the token sales are less, which is lower in the overall composition. That is one thing.

The other thing is if you see the enterprise sale is higher because the trust service as a percentage is lower and the enterprise sale has a higher margin. These two led to more higher margin.

Coming to the normalization, it may not suddenly further increase because we are putting more sales people across geographies. Some senior people have joined very recently.

Those extra salaries will happen and all that. With the result overall if you see, we may be able to maintain this EBITDA at 25% and PAT at around 16%, 16.5%.

Sir. Thank you, and all the best.

Hello, sir. A very good afternoon to you.

My question would be if we establish FY 2026 as a strong reference point for the business, could you help us understand your FY '30 vision for the company and how do you expect the revenue mix across trust service, enterprise, and transformation services to evolve and where do you see the major growth drivers emerging?

FY '30 we do not know, but we made a three-year vision. Our three-year vision is to achieve 2x profitability in 3 years.

But 2x revenue growth may not happen. We are expecting organic growth of 18% to 20% per year, plus if at all any acquisitive growth will be there it will be there.

As of now, our vision is to have 2x PAT in three years. Three years means that is '27, '28, '29, yeah.

If we have to achieve that, it has to gradually grow. More of enterprise solution has to grow because the growth in service business is almost very negligible, and the token business also may grow 15 not token business, trust service may grow 15% to 20%.

It has to be the enterprise solution business will grow more, maybe 20-25% per year.

To double the bottom line over the three next three years, how should the investors think about relative contribution from revenue growth versus profitability improvement while achieving this goal? Additionally, what kind of margins are achievable and what would be the most critical execution risk?

From our current revenue, you put 1.18 for 3 years, then what will be the total revenue will be known. Similarly, current profitability is 110.

From there, 1.25 you can put 3 years. Then based on that, if you divide the thing, then you will get what should be the PAT percentage, which will be instead of 16% could be 17%, 17.5%, or whatever.

That's how one has to look at it.

That's helpful. As you execute this journey, what would be the most important operating metric or KPI that investors should track each year to assess whether the company remains on course to achieve its objective of doubling the bottom line?

Every year we publish something called an order book metric, which is primarily meant for enterprise solution, and there historically has been a multiple on the order book that the business has achieved in the following year, right? This has been true since the time we've started disclosing the metric, I think as just following the IPO, which is in 2022.

That is the metric that you can look out for in the annual investor presentation. If there are any further clarifications, we can do a separate one-on-one call to help you get a better hold of that metric.

Lastly, as the management pursues its long-term growth ambitions, how do you balance growth, profitability, and capital efficiency when evaluating strategic decisions? Are there any opportunities, whether in new geographies or products or acquisitions, that you would consciously choose not to pursue as they do not meet your long-term return threshold or create sufficient shareholder value?

Now, we don't venture into high-risk things. If it is reasonable valuation and reasonably it can fit into our philosophy, then only we will go with the acquisition.

If you see all our past acquisition, it has been very highly value driven, and then how we are able to take it further and grow the business. Any acquisition, several acquisitions come, but several are highly priced or it may not fit.

It may not be management cultural fit, so many things are there. Those things we do not pursue.

That's why we are extremely cautious on the profitability. That's why if you see from the time of listing, almost we have been able to maintain the profitability, maintain the growth, and everything.

Thank you so much, sir, for answering me, and all the best for the future.

Thank you.

Hello. Good evening.

Am I audible?

Yes.

Yeah. Congratulations on good set of numbers.

Most of my questions are answered. I know that I joined the call late, but I'm not heard any update on the case going on with 3i Infotech.

Were there any latest update there on that?

Now, there is no update. The police to which they have complained, they called me for statement on one day, and they have extensively taken our side of the story and the statement and all the evidences which we have.

After that, there is no update.

This will take some time to settle down and this case?

Case in the hands of the police, we do not know when they will close or whether they will take further action and all that. From our side, we have given all the evidences whatever we have, and they have also taken our statement.

Okay. Linked to that, recently what 3i Infotech has announced that a group called Capital NXT has acquired 5% stake in the company.

See,

is that something as a group related to eMudhra? If it is so, what is the plan?

Not related to eMudhra, that is related to my personal investment.

It's not related to eMudhra. Okay.

Not related to eMudhra, my personal investment, yeah.

Oh, okay. All right.

Thank you very much, and all the best.

Thank you.

Hello once again, sir. Sir, another thing I wanted to ask is over the last few years we have seen a meaningful shift in revenue mix towards enterprise solutions.

However, this has not yet translated into a corresponding improvement in ROE and ROCE. Could you help us understand the key factors behind this?

As these segments become a larger part of the business, how should investors expect a structurally higher return profile and what would be the management consider a sustainable ROE and ROCE over the medium term? You see,

ROE, what happens is generally when you get more and more profit every year, the reserve also increases. Once the reserve increases, that adds to the equity base.

That way if you see over the years, the equity base has also increased. That is where currently last year what was our ROE?

Around 14.5-15%, yeah. Ideally that could be the ROE which we can maintain.

Any kind of structural reason why the company should not be able to achieve ROCE levels comparable to other leading software and cyber security companies or this kind of return profiles is largely part of the company's business model?

No, other cyber security company also I don't think nobody is achieving more than 25% EBITDA margin or more than 16% PAT margin and all that because we have compared. A lot of them are less only, nobody is more.

Even foreign companies are several times almost zero margin kind of company, American company. That way our profile is much better, ROCE and ROE.

Another thing is we as a strategy, up to now, we are not borrowed much. On the one side with high leverage, if you try to do, then the return on equity can be better.

Return on capital employed will not be better even if you borrow, but return on equity can be better if you borrow more. As a strategy, we do not want to borrow more and then create borrowing burden.

Got it, sir. Thank you very much,

Thank you.

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