NIIT Learning Systems Limited (NIITMTS) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the NIIT Learning Systems Ltd. Q1-FI27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions at the end of today's presentation. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Vijay Tharani, Vice Chairman and Managing Director of the company. Thank you. And over to you, sir.

Thank you. Good evening, everyone. Thank you very much for joining the NIT Learning Systems Limited's Port 1 FI 27 Earnings Call. I want to start by thanking you for your continued interest in the company and making yourself available at this time of the day in a busy results season where there will be multiple meetings happening at the same time. So truly appreciate your presence and truly take that as a sign of your commitment to help us grow in IT as well. Our agenda today is to discuss the quarter 1 FY27 financial and operating performance. Most importantly, we are very excited on our AI-first strategy and AI-enabled revenues, and we would like to talk lots about that. We have been fairly busy with inorganic activity in the last 12 months. And in that process, we acquired two companies, MST Group in Germany and Sweet Rushing in Costa Rica and West Coast. And both these companies are becoming part of the NIT family, and we are excited about how they are contributing, how we are contributing to their future. And then, of course, we have had some new customer wins, which we would love to talk to you about. As well as, in this very new world, discuss the path forward that the company is taking. This, of course, will be done by Shepnesh Lala, who is the CEO and Executive Director, after which we will open it for question and answers. Before we begin, I just do want to say that some comments in this discussion may be forward-looking and subject to risks and uncertainties, and actual results may differ materially, and this should be taken note of. With that, I hand you over to Sapneshlar.

Thank you, Vijay, and thanks, everyone, for joining. Like Vijay pointed out, we know the fact that it's a busy season for you and appreciate the fact that you've joined us as we discuss our performance from the last quarter. I will review our performance and share our view on the path ahead as Vijay pointed out. Revenue came in. At 5,651 million INR, it grew at 25% year on year. Excluding the contribution from MST and Sweetrush, the two acquisitions we made in F526, the revenue growth was 11% year on year. Revenue growth in constant currency was 11.4% year on year and 2.9% quarter on quarter. As a reminder, our Q1 FY26 base figure had a significant revenue contribution from the North American real estate training contract that we concluded in FY26. Normalizing for that, our overall constant currency growth for Q1 FY27 came in at 18%, and the organic constant currency growth is 5% year on year. I did want to spend a few minutes on how we have performed across different market segments that we service. And I'll take you through a performance in each of these market segments in the next couple of minutes. This is not something that we have done or had a discussion about in the past. So this is net new for those of us who have looked at our commentary in the past. Our industrial sector, which contributes about 20% of our revenue, grew 35% year-on-year in Q1, partly driven by MST joining the NIT family. As you might be aware, MST has significant strength in industrials and energy sectors, and we count both of them in industrials. The BFSI sector, which takes up 12% of our revenue, grew 33% year on year. Life Sciences and Healthcare, which contributes 15%, grew 29% year-on-year. The growth in our largest sector, that's Technology and Telecom, which contributes 23% of our revenue, was slightly muted at 8% year-on-year. The Management, Consulting and Professional Services sector, which contributes 9% of our revenue, de-grew 16% year-on-year. These two sectors, technology and telecom, as well as management consulting and professional services sectors, were affected by two large clients who had pulled back L&D budgets sharply in the previous quarter. In response to business uncertainties, we had called that out in our earnings discussion last quarter as well. The good news is that both clients grew well sequentially in Q1, but are yet to get back to last year's run rate. We expect that over time, they will get back to that run rate. I did want to also provide a quick update on... MST and Street Rush, who became part of the NIT family in FY26. As you are aware, MST group joined the family in July of 2025. MST is a leading managed learning services provider in the dark region, specifically based in Germany, with deep, long-standing client relationships across automotive, industrial, and energy sectors. As you are aware, these sectors are undergoing some of the most consequential workforce transformations in Europe today, as Germany and countries in the dark region transform their economies from predominantly industrial-focused to technology-focused economies. It helped us establish our presence in Germany, Europe's largest economy, and is a meaningful step in helping us build our European platform. MST contributed approximately $231 million to our quarter-one revenue. Treetrush, who joined the NIT family in January of 2026. It's an award-winning provider of human-centered, AI-enabled learning experiences to Fortune 1000 corporations and professional associations. Their offerings span strategic training interventions, certifications, AR, VR, and XR immersive forms of training. Sweet Rush. Helped us move our revenue mix up the value chain to become more outcome-led, performance-critical, and inclusive of strategic learning interventions. Sweetrush contributed approximately $431 million INR to the Q1 revenue. Both Sweetrush and MST are delivering early synergy benefits. Previous quarter, a leading European automotive OEM and their battery gigafactory became a new client for MST and an annuity, long-term annuity client overall. This quarter, One of Sweetrush's longstanding clients, a major global hospitality group, has since converted into a long-term managed services engagement, directly validating the project to annuity thesis we established at the time of Sweetrush joining the NIT family. Both of these developments are in line with our thesis for these two organizations becoming part of the NIT family. And now, I wanted to spend a few minutes on reporting back on progress on our AI-enabled learning opportunity and the progress that we have made in pursuing that opportunity. One of the most exciting growth vectors in our business is AI-enabled learning tools, technologies, as well as solutions. Let me share some details with you on the progress that we've made so far. In our last learning call, I spoke about the three components, self-improving learning platform that our AI learning practice is developing. The AI coach engine, the simulation manager, and the sensing engine. This platform has now been deployed as a solution by multiple clients, and we are getting very good feedback from users. In June, we launched our AI-ready L&D Enterprise Portfolio, which brings together four integrated solution areas that together equip corporate learning organizations to operate, scale, and lead in an environment increasingly shaped by AI. Our AI-enabled services contributed 13% of the revenue in Q4. As a reminder, this has two components, solutions where AI components are embedded into the offering, as well as engagements where our AI studio and tools materially contribute to creating an or form part of the delivery. NIT learning systems were independently recognized, as you may have noticed, as a market leader in the Fosway AI Market Assessment 2026 for digital learning. The assessment ranked us the highest in our peer group on our say-do ratio. And what's the say-do ratio? Say-do ratio is the features and benefits that we promise we are able to deploy. So all the features that we have promised are now in deployment, and our clients are able to take full benefit of these features, AI-enabled features, in their engagements with us. We were also named to the training industry's 2026 top 20 companies in AI coaching and learner support tools for the second consecutive year, and to its top 20 staffing and temporary resources companies list this year as well, underscoring a breadth across AI-enabled and traditional managed learning services. At this time, I wanted to talk through. A very interesting case study where we worked on a strategic engagement with one of our key clients, among our largest clients, and how this solution was aligned with their strategy and how we executed upon it and the results that they have seen over the last six months. One of our large clients, as I mentioned, Global System Integrator, saw a large opportunity to transform some of their mainframe clients using AI. To address this opportunity, they needed to train their go-to-market team on the opportunity and how to present this opportunity to key CIOs and CTOs across their customer set. They also needed to train their consultants on how to analyze and consult with their key clients and come up with custom solutions tailored to each client's unique landscape. Lastly, they also wanted to create a large cadre of forward-deployed engineers who would get Forward deployed into their clients and work consultatively with their clients and client organizations to enable the transformation. So three dimensions to the opportunity, go to market, consulting, and creation of an FD carder who could do the execution. Our learning consultants worked closely with the client's subject matter experts to come up with hyper-realistic simulations and deployed our AI-enabled training framework across the three opportunity streams, namely go-to-market, consulting, and execution. The solution was fully aligned with business. Scaled to make material difference and performed in a matter of months. Like I pointed out, we were able to see not just implementation and execution, but also see significant. Benefits that the client has gone on and posted publicly on LinkedIn. The client is thrilled with the outcomes, including the doubling of the total contract value for the go-to-market dream that was trained as part of this process. Stepping back, as you can see, we are able to now respond to strategic initiatives. That our clients want to take and respond at scale and in a time frame and at a pace that makes a difference to their business. While this is one case study, and it's of significant size, we think that as we look ahead, we will see more such opportunities, and we'll see clients benefiting from more such opportunities. These are the opportunities which are aligned with business, delivered at scale and speed, and visibly driving business outcomes. This and other opportunities such as this constitute a very significant Scaling opportunity for an IIT. Opportunities such as this will significantly expand the TAM multifold as it expands the buyer set to include business leaders and owners of business strategy within the enterprise. So we are super enthused by the results that we've gained from this opportunity, and we see this opportunity or such opportunities being replicated across the number of our clients. Coming back to a report out on our financials, we covered revenue a minute ago. Let me spend a few minutes on profitability. Q1 EBITDA was rupees 1032 million. It was up 8.5% year-on-year and 3% quarter-on-quarter at a margin of 18.3%, which is within the framework that we had guided for Q1 when we met last. The year-on-year margin movement reflects the phase margin buildup or sweet rush together with the continued investment in AI as well as the sunsetting of the real estate contract, North American real estate contract. Normalized for these investments, the EBITDA margin are in line with our long-term margin expectations of 20%. We expect, as business scales, we should be able to get back to close to 20% at the overall level. Repreciation and amortization was at rupees 215 million INR versus 205 last quarter and 181 a year ago. I am sorry, other income of 166 million, which includes 154 in treasury income, and 12 million of miscellaneous income due to profit from sale of assets. These are offset by other expenses that include net finance cost of $88 million, comprising of $46 million in fair value adjustment in future acquisition liability, $31 million due to interest on loans taken for financing the acquisitions, and $10 million due to interest charge on long-term leases. A forex loss stood at 62 million. Bank and other charges of $18 million, CSR-related contributions of $22 million, and an exceptional expense of $11 million towards professional fees, towards inorganic initiatives. The profit before tax was $781 million INR. Tax was rupees. 207 million. Effective tax rate was 26.5% versus 18% last quarter, which had benefited from no tax on the Q4 fair value gain that we experienced last quarter. Profit after tax was Rs. 574 million, was up 16.4% year on year. With EPS of rupees 4.17. Balance sheet and cash flows remain strong. The trade receivable days improved to 62 days from 65 in the previous quarter and 68 days a year ago. Cash and cash equivalents were 9,954 million INR. They were up from 9,366 million at the end of FY26. Net cash was at $7,364 million, compared with $6,692 million at the end of FY26. Operating cash flow for the quarter was $758 million, INR representing 73.4% of the EBITDA this quarter. The free cash flow was 616 million INR. The capex was at rupees 144 million INR. ROC at 31 and ROE at 18 for the quarter. The employee headcount was 2,496. It was down 50 quarter on quarter. I also wanted to spend a couple of minutes on the strategic market opportunity that we are chasing. The market opportunity, as you are aware, is immense. It's $400 billion in global spend on corporate training. As you are aware, and we have mentioned, only about $10 billion of this is currently outsourced and represents a very small level of penetration. We expect this to change in the coming years as companies look for improved efficiency, greater variability in their fixed costs, and growing focus on training outcomes. Additionally, the accelerating adoption of AI-enabled learning is throwing into sharper focus the inadequacies of in-house training organizations. As a consequence, we believe the propensity to outsource will only increase spurring market expansion and a multi-year or even a decadal growth opportunity. We believe that NIT learning is well positioned to capture a disproportionate share of these opportunities underpinned by our proprietary learning methodologies and leadership in the use of technologies, including AI. Our continued investments in deepening our capabilities in AI, advisory and consulting services, and in our go-to-market with a focused effort on wallet share expansion across our existing clients, as well as our strong brand as a trusted and reliable market leader. Our sales momentum and revenue visibility remain strong. During the quarter, we signed three new long-term annuity contracts, taking our long-term annuity client tally to 113 from 95 a year ago. New clients for the quarter included a leading quantum computing technology company, which has outsourced their customer education to us. A global clinical research organization serving the biotech and pharmaceutical sectors, as well as a global hospitality company. This, I mentioned earlier, is an early example of cross-selling of corporate learning group services into Sweet Rush's family of clients. We also expanded the scope of our engagement with one of our, one of the world's largest professional services firms. In addition, we completed three renewals that came up for renewal in the previous quarter, two of them leading global pharmaceutical companies and one with a large U.S. bank. The contract pipeline continues to be strong. The revenue visibility improved to US dollars 462 million. It was up 19% year on year from 388 million a year ago. As far as our guidance is concerned, we started FY27 with greater revenue visibility, which gives us a strong foundation heading into the year. We remain watchful of the macro environment and the pace of client decision-making, which can influence timing of new ramp-ups in the near term. In Q1, as I have mentioned, we delivered 11.4% growth in constant currency, in line with what we had guided in May. For the full year, we expect the revenue to grow in high single digits. On margins, we delivered 18.3% in Q1 within the framework that we had guided for this quarter. For the full year, we continue to expect an EBITDA margin of 18% to 20%, reflecting continued delivery discipline and phase margin build in sweet rush. For Q2, we expect 9% to 11% year-on-year growth with margins around 18%. With that, Vijay, I wanted to return it back to you.

Well, I think that was quite comprehensive, and I'm sure there are many more questions that you would like to answer. So, operator, may I open it up for Q&A, please?

Sure, sir. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. We have a first question from the line of Devyanj Jaju from Tri-Nitra Asset Managers. Please go ahead.

Good evening, sir, and thank you for the opportunity. So my first question was that the company is continually investing aggressively in AI-annabled lending solutions. So what management is, at what stage they are expecting that this investment will start contributing meaningful future revenue?

So, sorry, do you have another part to your question? I didn't want to interrupt.

Yes, another question was just... Go ahead. Yes, the other question was just to confirm that in the commentary, I'm not sure that you speak on this, but the EBITDA margin, the guidance has been same or any changes are there?

So, on AI, I pointed out that 13% of our revenue came from AI-enabled solutions. And we expect that this percentage will grow over time. The investments that we are making are starting to show significant early promise. And we think that the returns from these investments will start becoming even more material than they are today as we look ahead. And in terms of our margin, the margin stood at 18%. I'm sorry, 18.3%.

Yes, sir. Any change in guidance? Any change in the guidance?

In guidance, we are looking at margins in the 18 to 20% range for the fiscal FY27.

Thank you, sir.

No, no. Thank you, sir, for guiding.

Thank you. We have our next question from the line of Bharat Gulati from Dalai Landbroker Stocking. Stockbroking, please go ahead.

Yeah, hi. Thank you for the opportunity. Congrats on the great set of numbers. Just on the uptick that we've seen on Bioware revenues in organic basis, what would have that turned out X of RICO? And what would have been QOQ organic growth on a CC basis?

So, our organic growth quarter and quarter would not be affected by the North American real estate client. It would have stayed at 2.9% quarter on quarter. On a year-on-year basis, net of the real estate client or YOY organic growth would be 5% in constant currency terms.

So, just, just trying to understand that number that

we've lost the RICO contract and X of that also we've grown 5%. So, then barring that the growth should be slightly higher, right? Or how does that play out for us?

So, first, I wanted to say we did not lose the real estate contract in... North America. The real estate business that we were pursuing by the act of the government of the province of Ontario became deregulated and the education became deregulated and the regulator stopped offering that education. So that's the first thing I wanted to mention. The second thing that I wanted to mention was that the overall growth without after netting out the real estate contract from last year would have been approximately 19% in constant currency terms. 18%, sorry, 18% in constant currency terms.

So, 18% YOY growth in constant current returns on the overall business, right?

But I'm just trying to understand that our organic business has grown 5%, which is including the RICO contract. So, what would have it been? X of RICO, because it should be higher, right? Because we've tried to… It is X of RICO.

X of real estate business is 5%.

Okay, got it. And so then why hasn't it translated out to QOQ growth? Is there any particular ramp down in terms of customers on a QOQ basis? Or what exactly has happened in the organic business on a quarter on quarter basis?

RICO was not there in last quarter, RICO is not there in this quarter.

Yeah, so the real estate contract has not affected quarter on quarter growth. The quarter on quarter growth is 2.9%.

Yeah, no, I understand that, but that is including our inorganic, right? Or is that just organic growth that we witnessed a 3% quarter on quarter growth? It is overall. So, what would have been just the NIIT's organic business in that 3% if you can help me with that? Because I understand that Sweetrush would have had an acquisition sort of a timing mismatch where some numbers would have come in there as well.

No, they were there previous quarter as well. So, both MST and Sweetrush were part of NIIT in the previous quarter and the quarter-on-quarter growth will be more or less 3%.

Got it, got it. And just on the margins, so X of Sweetrush, what margins would we be at right now and how do we see these margins ramping up? Should we hit the 20% mark this year or is it a little bit of a longer time period where it would take to reach that 20% EBITDA again?

So like I said that we have, we think that the margin will be somewhere in the 18 to 20% range.

Got it, got it. And just on the high single-digit guidance

for the full year, given that we're growing 3% quarter on quarter, do we see some headwinds coming onto this growth going forward? Just trying to understand the sustainability of this growth, how much is, have we seen any slowdown in clients in the recent month, which is off Q2, and how are we seeing spends given that revenue visibilities are also up?

So, we think that, I mean, first, we are entering a vacation quarter, especially in Europe. July, August, September is a vacation quarter. So, we will see dampening of quarter-on-quarter growth as we enter Q2. We will see a revival in Q3 and then some flattening as far as Q4 is concerned. So, given all of that, we think that we will have high single digit. I think it's mostly… Uh, seasonal. Uh, we think that some of our wins have the opportunity to contribute to accelerating growth. Uh, but, uh, given the environment and the, uh, cautious decision making that several of our clients are doing, uh, we want to ensure that, uh, we talk about it once we are, uh, more served.

Got it, got it. And just lastly, on capital allocation, given the free cash that we're generating and the net cash on our balance sheet, is there some plan of a buyback that is in place or are there further acquisitions being evaluated or is there a plan to increase dividend payout to any extent? Yeah, that's it.

So I'll make a couple of comments and then hand off to Vijay for more commentary. A, we are actively looking at acquisitions. Hello. Great. Thank you. Thank you. Good morning, everyone. Good afternoon, everyone. Thank you.

Yeah, so I think we got this capital, and we created this capital, Kitty, and we have also used it fairly well, if you would see. Since we created this, I think we have had three acquisitions, and there are more in the pipeline. Also, the investment required for AI. And at this point of time, I think we are completely aligned on making sure that we invest in these two parts. And you would keep hearing about how each one of them is resulting. In today's call, I think Sapnesh talked to you about the work that we have done in AI-led L&D Enterprise. And that's very unique and positions us extremely well and very well acknowledged. I think in the coming quarters, you will also see some inorganic activity. We keep listening to your voice and we'll act accordingly as and when we see some opportunity, we will in future. But at this point of time, we are following the conservative, not conservative, but consistent. Dividend payment policy as well as investing the money or keeping the money for exactly the purpose that it is meant for.

Thank you. The next question is from the line of Dishan Jain from Coeser Capital. Please go ahead.

Yeah, am I audible, sir?

Yes. Yes, sir.

Yeah, thanks for the opportunity. Sir, can you just provide a Y-on-Y organic growth CC number on revenue?

5%.

So, that is net of real estate, right? 5%.

Yes.

So, if you include the real estate contract, then what is the, why am I growth? Organic.

The RICO had a 6% contribution to our numbers last year. It would be good. About a percent and a little negative. Negative 1.7%.

Negative 1.7%. Fair.

Yes, one moment. I think if I look at the last... Seven or eight questions, they are all pointing in the same direction. One is what exactly is the organic growth? I think organic growth numbers we have declared, and we are separating out eco because that is an outlier and standing there and affecting both revenue and margin. And that is the contract which got over, not lost. And that's a business which got over, not lost. So... So, I think that is the, should I say, the odd thing which has happened in this last 12 months. So, we appreciate your question. If you think there will be, it will be nice for us to reconcile and give it to you as numbers, we can just send out one communication and that should put this argument. We will be very happy to discuss this, no objection at all. But we would also be very happy to discuss strategy and things which we are very excited about in the future, and we think you should be too.

Sure, sir. Another question would be on the equation of MST and Sutras. So, is it possible to provide some call, like how are they doing, like can we get a last year numbers for this Q1, just to get a sense of how they are performing after we acquire them?

So, last year's numbers are not audited, so we would prefer not to discuss last year's numbers, and they had different revenue recognition models, so we would prefer not to discuss. Like I counted out earlier, both have contributed to revenue, both have contributed to the synergy thesis that we had created at the time of them becoming part of the NIT family.

First of all, thank you.

Thank you. A reminder to all participants, if you wish to ask any question, you may press star and 1. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. The next question is from the lineup. Pranya Jain from Banyan Tea Advisors, please go ahead.

Hi, am I audible?

Yes.

Thank you so much for the opportunity. So, I have a few questions. The first one is, we saw three large annuity deal wins this quarter. Despite that, our revenue visibility has grown by less than 1% QOQ. Can you highlight what is the reason behind it? Like, ideally, when we are winning these large deals, shouldn't the QOQ growth on revenue visibility be higher?

So let me correct you there. I said that we won three annuity deals in this past quarter. We did not talk about large deals. Just by reference, large deals for us are deals that are greater than $5 million. These three were average deals for us. The visibility is net of revenue consumed during the quarter as well as New order intake and that has grown both quarter on quarter and more importantly significantly on a year-on-year basis. I think 19% year-on-year.

Understood. Got it. Thank you for the clarification. And second question is on the AI revenues that we are booking. Can you talk about what kind of margin profiles do these AI-related revenue that we are generating tend to have?

Like I said, that the AI revenue comes in two or three different dimensions. What I can state is that the margin profile is better than the average margin profile for our business.

Understood. Understood. Got it. So, does that have an element of, say, like a SaaS type of model where we are, you know, building products and providing those solutions in that format?

Yes, indeed. So, I talked about coaching, I talked about simulation. For a number of our clients where we conduct training, we also provide in the flow of work simulations and coaching for a long period of time after the training is done. So, for example, for some, it's a year, for some, it's six months. And during that time, Our clients pay us a subscription fee, which you could say is like what a SaaS contract would be. Several of our clients also renew this beyond the initial period. So, for example, one of our clients who has almost 12,000 folks who are consuming AI-enabled content and coaching and simulation services. Several of those subscribers have renewed their contract as they hit their first year.

Understood. Just last question, the top five customer revenue contribution on a quarter-on-quarter basis that has gone from 31% to 35%. Can you just comment on what has driven this? In which segment was this customer? Is it like one customer who is driving this or is it all top five who have grown and which segment would they be part of?

So, we mentioned in our Q4 commentary that we had added a large client, and that large client has improved the percentage of top five clients.

Got it. Understood. That's it from my side. Thank you, and all the best.

Thank you.

Thank you. A reminder to all participants, if you wish to ask any questions, you may press star and one on your touchstone phone. We have our next question from the line of Ganesh Shetty, an individual investor. Please go ahead.

Good evening, sir, and congratulations for a steady set of numbers. Just want to ask one question regarding our new segment and new geography penetration. Now we have acquired one customer in automobile and one in hospitality as our managed training services offering. So, can you please throw some light on these two segments where we can further expand our client base and any strategic marketing initiative we are doing for this?

Thanks, and that's a very interesting question, Ganesh. You always bring very insightful questions and encouraging commentary. The first one on automotive and industrial. So, as you might imagine, automotive clients, while their own employees are significant, but they also have very significant extended enterprise. So, an automobile manufacturer, in addition to having several employees of their own, also have a significant number of dealerships where they do sales and services. The MST group team that became part of NIT in July of last year had significant penetration across the automotive landscape in the dark region, especially in Germany. And the client who became an annuity, long-term annuity client for us. is the giga factory of one of the automotive majors in Germany. We see a very significant opportunity to convert a number of automotive clients of MST in the dark region into long-term annuity clients going forward, and we have a steady pipeline for doing that. Both in automotive, energy, and industrials, which are key market segments for MST in the dark region. Likewise, Sweet Rush. has significant penetration with companies as well as associations who have significant extended enterprise. So you think of professional associations, professional associations have large memberships, and often professional associations provide education and training products as part of benefits or for sale to their membership. Likewise, large hospitality chains have a significant number of business partners who carry their franchises, who are the franchises of the brand, and the brand often uses training as a product and as part of the franchisee fee to ensure that the brand guidelines, The customer service, the operations are in line with the brand guidelines. And one of those clients for Sweetrush became an annuity client for us this quarter.

Thank you, sir, for detailed answer. My second question is regarding the challenging macro, which we continue to face for a very long time, and I think we will be facing it for further some period. And during this period, the discretionary spend is limited by our clients, new clients, as well as the present clients also. But our offerings are very attractive and we have upgraded our attractive with our offerings with AI-related offerings. And how we are going to win this race by challenging the bad macros with our enhanced capabilities? Can we throw some light on this?

That's again a very interesting question. See, bad macro is bad macro for all of us. Our competitors as well as our clients. Our clients are trying to become more efficient. Our competitors are struggling as well. And in that, the investments that we've made in AI enable us to become more competitive. They enable us to bring better solutions for our clients who embrace those and, like the case study that I pointed out, are able to move the needle on business outcomes. And I think that's what's going to help us win. So, to summarize, the investments that we've made in AI, the improvements that we are able to make using AI to Training, achieving significant business outcomes at scale, as well as at a pace that was not possible without AI, will enable us to win the battle. And like I pointed out, the environment is bad for everyone. I think we will win because we see opportunity in that.

Thank you very much, sir, and all the best for the future.

Thank you.

A reminder to all participants, if you wish to ask any questions, you may press star and 1 on your touchtone phone. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone.

And we can, I can make some closing comments and close the call.

Sure, sir.

So, first of all, I think all of you are very interested in our AI initiatives ranging from margin to what exactly do we do, to which industries do we change, and we've been getting this feedback over the last two or three months. So, I wanted to inform you that in the month of September, Most probably on 10th of September, we would be doing a day, Investor Day in Mumbai, and more details about venue, timings, we will be sharing with you, as well as the date, once, as of now, that date is tentative, and we would love to have all of you join us on that date. Most significant thing that we would like to do is to showcase. And show you exactly how we have made difference to our customers through our AI-led initiatives. And we will have our senior team across the world available there to not only show you, but also talk to you and demonstrate to you by making you one of those participants in those. So, we hope you will find it very exciting, and we'll accept our invite, as in when Kapil and his team will send that out shortly. Other than that, the fact that you decided to be with us, we truly appreciate. We know it's a very busy season, and at this time, there may be other important meetings happening, and you decided to give your time to NIT. We are really, really grateful to you. We truly... Appreciate all the questions you ask. And other than answering your questions, I think it opens new doors in our mind and therefore creates new opportunities. So we appreciate that part. And we also have a takeaway that maybe we should give you a little more clarity so that we don't have to reconcile numbers.

Thank you very much, sir. On behalf of NIIT Learning Systems Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.