3i Infotech Limited (3IINFOLTD) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to 3i InfoDeck Ltd. Q2 and H1 FY27 Earnings Conference Call. We have with us the Senior Management Team represented by Mr. Raj Ahuja, Group Chief Executive Officer, and Mr. Kalpesh Shah, Chief Financial Officer. The management will be sharing the key operating and financial highlights for the quarter and half year ended September 30, 2026, followed by a question and answer session. Please note that some of the statements made in today's discussion may be forward-looking in nature and may involve risks and uncertainties. Documents relating to company's financial performance is available to the stock exchange. Trust you have been able to go through them. As a reminder, all participant lines will be in the listen-only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Raj Ahuja. Thank you, and over to you, sir.

Thanks, Ant. Before I start, just to add, our company secretary, Varika, is also in the call, so we have all the three KMP represented 3i in this call. Good afternoon, everyone, and thank you for joining us for the Infotech Squadron 2 and Half-Year 1 FI 27 earnings call. It's my pleasure to connect with our shareholders, analysts and stakeholders as we review our performance for the first half of the financial year and share our outlook for the period ahead. At the beginning of Perfect 27, I had spoken about our transition from building the foundation of transformation to deliver measurable business outcomes. During the first half, we have made steady progress in strengthening our core business, improving execution, and aligning our organization with our evolving capabilities. We are done with the base work of building capabilities Now, as we move into the second half of FF27, our focus is on building business momentum, expanding our market presence, and driving sustainable, profitable growth. We will continue to prioritize operational and delivery excellence and discipline execution as we advance towards our Vision 2030 ambition. I believe the progress phase so far provides a strong foundation for the next phase of our journey where our priority will be to translate our strategic initiatives into consistent business performance. With this context, let me take you through our financial performance, key business developments, and strategic priorities. For H1 F827, revenue from operations reached approximately Rs.360 crore, around 4.2% higher than the call spending period last year. For the second quarter, Emitter stood at Rs. 13.7 crore with a margin of approximately 7.5% and profit after tax was 6.7 crore. Emitter stood at Rs. 25.2 crore with a margin of approximately 7% and profit after tax was Rs. 13.2 crore. The numbers are strictly not comparable to the last year's number where we had one-time income of approximately Rs.27 crore net of taxes in the first half of the last year due to U.S. URC credits. In 2017, despite investment of working capital in new contracts for more than Rs.20 crores, especially in India and Middle East, and extending capabilities through COEs, Cash flow from operations were positive at Rs.2 crore, adding to our cash reserves. Our focus remains on sustaining growth in both operating revenues while improving delivery productivity, strengthening past discipline, and enhancing the quality of our business mix. We are aligning our investments in sales, talent, and technology with opportunities that support strong operating performance over time. Our results include investments made so far in It's creating capabilities through AI, automation, ERP, security, and application modernization center of excellence, adding relevant subject matter expertise, completing creation of our leadership team, and investment in processes and technologies. It also includes content costs pertaining to cyber security events, sub-hold tax dispute settlements, and legal costs pertaining to our investor matters. We continued to maintain a healthy talent environment with voluntary attrition declining to 18% in half-year FY27 from 22.2% in half-year FY26. Reflecting improved workforce stability and the positive impact of our people-focused initiatives. Turning to our business performance, quarter to F2007 saw continued momentum through new business trends, product renewals, and expansion of existing engagements. We added 25 new clients during the quarter, strengthening our presence across banking, insurance, energy, manufacturing, government, consumer, and technology sectors. In India, our engagements covered application development and maintenance, infrastructure management, data analytics, and business intelligence. Internationally, we secured opportunities across North America, the Middle East, Asia Pacific and Digital Engineering, Cloud Services, APIs, Integrations, DevOps, and Automation. Our portfolio are also reflected in the revenue mix, with a contribution from our top 5 customers declining from 27.2% in half-year FY26 to 23.5% in H1 FY27, reducing concentration and strengthening our business space. During the first half, we recorded a total contract value order booking of Rs. 467.3 crores and an annual contract value of Rs. 379.5 crores, including renewals and new businesses, reflecting continued business opportunities across our portfolio, strengthening existing accounts, acquiring new customers, and converting our opportunity by planning to larger solution-led engagements to support sustainable growth. Coming to the geographical performance, our international business continues to be the key entry builder to overall performance, with the U.S. remaining our largest market, accounting for approximately 49.1% of Q2 FY27 revenue, followed by India at 24.9%. Middle East delivered strong crores with revenue increasing 54.3%, quarter on quarter 2 rupees 4.5 crores, driven by new business engagements. During the quarter, the U.S. contributed Rs. 89.4 crore, India 63.6 crore, and Asia-Pacific Rs. 4.5 crore. We are strengthening our presence across key international markets, expanding strategic accounts and pursuing new opportunities aligned with our evolving technology capabilities. We are also focusing on increasing our base in new geographies until last quarter, namely Canada, and us have been good, creating a reasonable funnel in the very first. For ongoing business transformation, we have moved towards a more capability-led structure. Building on the center of excellence-led model introduced last quarter, we have aligned our business offerings with our growing capabilities to better serve our customers and support technology-led growth. Effective October 26, we have transitioned our business into three capability-aligned service lines to depict our new and evolving center of excellences. First, Digital Engineering Services, which was formerly known as Application Automation Analytics Division. Second, Cloud Infrastructure and Security Services, formerly known as Infrastructure Services. Third, Business Process Services, which retains its existing identity with an enhanced focus on AI and automation-led services. This transition brings together our domain expertise, technology capabilities, and reliability strength. With this business realignment, let me take you now to the performance of our three business segments. Digital engineering services remains our largest business, contributing approximately 74.1% of your F527 revenue. With application engineering and modernization, enterprise applications, transformation, and quality engineering, we are focused on supporting customers in their digital modernization and transformation journeys. Our infrastructure and security services contributed approximately 17.9% of H1 revenue. Our focus in this unit is on strengthening cybersecurity and H1 revenue. There are a lot of redwinds in this business due to increased usage of AI automation in business operations, developing market-ready solutions, strengthening delivery capabilities, and translating our expertise into measurable customer outcomes. AI and automation across all our services, platforms, and internal operations. Over 150 data and advanced analytics professionals and 350 certified automation and quality engineering I am translating these capabilities into scalable, AI-enabled solutions that improve customer outcomes, enhance delivery productivity, and create new business opportunities for us. To create an enhanced value and focus in our series, we have decided to integrate all our AI analytics and automation COEs into a separate legal entity. These businesses require a different rhythm with consulting and senior level partnership mindset to be successful. To enable this, the board has already approved setting up office subsidiary in their last meeting, which is part of our stock exchange filings. We also might look into some partnership in this entity in future to increase your overall stakeholder value. To further support our technology-led growth, we continue to strengthen our newer platform ecosystem and proprietary solutions focusing on scalable offerings that complement our core services business. There has been some improvement both in product and GTM strategy in this area. We should mature by the year-end FY27 and will start adding their ways to the FI story. We are also deepening our strategic technology partnerships to expand our solution capabilities, strengthen market fees, and create new business opportunities. This remains on leveraging these collaborations to deliver greater customer value and support long-term growth. With the addition of leadership in this area, we have started working closely with large partners, both in India and internationally, to focus on long-term industry-specific solutions rather than just being in services. ...and accountability remains key priorities. We continue to strengthen our delivery practices, optimize resource utilization and leverage automation to improve productivity and support sustainable profitability transformation. We are investing in leadership development, multi-skilling, and future-reading capabilities across AI, cloud, cybersecurity, and digital engineers through the arbitration process. While the eMudra related matter remains under review, post response from EOW, and we are expecting closure of the matter in the current quarter. In parallel, we continue to work on old legacy matters pertaining to RBI, FEMA, and old intercompany transactions. Being old matters, the progress has been slow, new processes, and will keep stakeholders informed of any material development as required. Looking forward to second half of FA27, our priority is to build on the progress made so far by driving business growth now. By strengthening our sales pipeline, expanding customer relationships, and converting our COE-led capabilities into larger solution-led opportunities, we will also continue to advance our AI and platform initiatives, develop industry-focused offerings, and improve delivery productivity to support sustainable and profitable growth. Our Region 2030 is not just about achieving a financial milestone, but about building a stronger, agile, and technology-led organization recognized for its capabilities, customer trust, and consistent execution of business alignment, capability development, and operational improvements. Our priority now is to translate its progress into measurable business outcomes and long-term value, and by leadership team and others for their cooperation, and our employees for their Thank you

very much. We will now begin the question and answer session. Anyone who wishes If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use hand-tips while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Rushda Seyfi from Robo Capital. Please go ahead. Good afternoon. Am I audible? Yes, ma'am. I just wanted to know what do you expect the revenue growth to be in H2F by 27 and 28?

In your numbers, we don't see very, like say, where the growth will continue from where we have finished the H1. Based on our customer relationships, what we have built in the last one and a half, two years, in line with what we have given our vision of 2030, and we are progressing towards that.

Okay. The second question is that in the last several years, our revenue growth has been pretty modest. So, what type of growth catalysts do you see in the future for our Vision 2030?

The revenue growth has been modest, and in the past, I don't know whether you have followed our past headlines, and the revenue growth will be, like the revenue will be decrowing I am very very interested in the F826 and F827 will be modest growth. They are in line with the expectation which you have set for the market. And the reason is that last F826 we have taken a lot of time to clean up the whole revenue book. And we have decided to give up some of the businesses which were loss making or very low margin businesses not adding value to our overall market value. So, FH26 was announced that it will be degrowing in FH27. We said that since we are building up capabilities, was the issue of our rights, the issue which we did in October. And then those funds are being invested. It has taken some time from the October since we got the funds and then investing those funds into building capabilities, center of excellency. And now we have started seeing the modest growth, and now after that we will start seeing more than modest growth in the next one or two, three quarters to go. And the growth analysts are going to be more in the newest technologies. Our focus has been very, very clear. There are a few areas where we are focusing in building capabilities beyond reasonable investment, which is AI-led platforms, Thank you.

The next question is from the line of Sanjay Rava, an individual investor. Please go ahead.

Hi, Raj. Good afternoon. Hope everything, everyone, is okay, all going well. Congratulations on the good set of numbers. I have a few questions, more on the operating side. I'll come back if the time permits on any other questions. So, first is if we can indicate what the revenue growth in constant currency in both Q on Q and year on year. That was my first question. Second, you know, looks like the DSO has gone up. So, how is the company looking into getting this on track and improving the cash conversion cycle? That was my second question. Third, I think on the tax, there is no tax provision for the quarter. So, is it something that has been looked into going forward or how is it, you know, placed for this quarter? So, other question, one more question. With the rupee, you know, appreciating, is the company looking into any hedging policy to cover any forest risk that may come into the P&L, you know, in the future period? These are my few questions, Raj. I'll come back to the time permits later.

Thank you, Sanjay. Thank you for joining this call. And being an ex-KMP of the company, I think it's good to hear you wise again after some time. Revenue growth in constant currency. We actually don't calculate and don't publish because all our units are self-sufficient in nature. The U.S. has its own operations which is managed from the U.S. other than a small, like say, which is done off-site. We can calculate and maybe we can probably start going forward. And everything is, like say, consolidated at the latest currency levels as of now. So maybe I think that's the one parameter which we don't track, but we can look forward to Thank you very much, everyone, and welcome to adding that parameter also in future. Our U.S., especially U.S. business, which is 49% of the total business, is basically self-managed because most of the business is managed through the staff in U.S. only, so while my revenue is in U.S. dollars, my cost also mostly is in U.S. dollars, except for a very small portion, which happens from India. The DSO number has gone up, yes. In the DSO number, there is a specific reason. We have got two big opportunities in Middle East and a couple of reasonably sized opportunities in India, which has built up in, let's say, end July, beginning of August times. So, the collection has started happening post-September, and that itself has added roughly around 20 crore of receivable in the last two months, and the collection obviously has started happening in quarter three onward. So, it looks like the DSO has gone up because we got revenue only for two months, and then the complete revenue is outstanding as in September. But as we go forward, and the cycle will keep improving, and the revenue will start getting accrued for the full quarter, the DSO will come back to the normal level. Tech, as you know, we have huge carry-powered tax losses. Because of that, in India, there is no tech liability, and US tech liability is calculated based on, there also we have some carry-powered adjustments to be done. Based on that, the teams have done in consultation with the statutory oil trust and made relevant provisions, whatever is there. So there is no exposure or there is no other provision of the taxes in that regard. We have a hedging policy not to hedge for its exposure. And the reason is very clear, which I just mentioned as a response to your first question, that most of our U.S. operations are independent. While my revenues are in dollars, my cost also mostly is 70% or so in dollars, so they are self-hedge from that one of you, and that's why we don't have a hedging policy on all that. We have a hedging policy not to hedge.

So, I was more into, you know, because as part of the receivable in India from the exposure that we have in various countries, so that part are we covering because of that movement hits the P&L or it turns back as a, you know, income in the P&L. So, if you cover that appropriately, the variation may not hit the P&L as much. That's the reason I was more, you know, covering the question on hedging. And on the constant energy part, that would be great if that can be added, because we know the true revenue growth in the consolidated books, because most of the element, you know, when the dollar either appreciates or repricates, it has an impact on the growth, on the revenue. One more question I had, Raj, before I come back again, is the wage increase taken into account, or that is going to come in the future quarter?

It will come in the future quarter, because our wage increase happened from October 1st, so quarter 3, we will see an uptick in the wage cost.

Any impact that we see on the EBITDA levels? Because there is a good improvement in EBITDA. So, do we see any, all that is getting nullified in the margins?

Yeah, it will get nullified. I am not seeing any impact to flow through the EBITDA as a back level. So, it will be self-funded. Okay.

Thanks. I will come back again if the time permits.

Sure. Sure, Nandir. Thank you.

Thank you. The next question is from the line of Deepak Karwa, an individual investor. Please go ahead.

Hello.

Hello. Hi, David.

Hi, good afternoon. Congratulations on a good set of numbers. I have a couple of questions regarding the business and the balance sheet. So, recently you stated that you have realigned businesses into DES, EIS, our legacy, from October 26, supported by our 12 specialized CEOs and the two corporate CEOs. So, how is this new structure translating to measurable our productivity gain, gain-win, or profitability? I have multiple questions. Could I tell it?

Yeah, you can just mention all and keep going.

Yeah, sure. Also, in our investor presentation, we have stated that we have some legacy issues, which has been closed. So, I want to know that these legacy issues like fully resolved or there are some legal proceedings pending. And also on a balance sheet front, we have a short-term borrowing increase into the 40-45 crores. With cash in hand, we have nearly 70-75 crores. So, like, what led to increase in the borrowings? Like, how does we are planning to balance working capital and investment growth? No. Hello. Yes, please.

We are trying to do everything, whatever comes in our way for the customers. Now we have started working on setting up of the COEs, which is very, very focused on the offerings that we have, and we don't offer anything which is not there as part of our COE structure. So the COEs which you have created, and some of the COEs which I mentioned during my, like the text that I just mentioned about AI, Cyber Security, Cloud, Automation, and your, just on their initial performance. Function obviously which remain. So that's the business unit and each of the COEs will be monitored and evaluated based on their initial performances. There is no connection with each other's performance, which was not the case earlier because we were monitoring it only at a AAA or A infrastructure level and not the business plan-wise. So that will help us in a very focused approach across all of our LOBs. Okay. One of the legacy issues which we have been reporting over the last, I think, almost three years now, Majority of that, that application is still pending with RBI. We are actively working with RBI on that. Secondly, there is a lot of holds, receivable and payable within our inter-company companies. And obviously, we can't write up, write back without looking at the complete tax and accounting implications of that, including the FEMA requirement here. So, we are working entity by entity and cleaning it up, and like you would have seen in the last two annual reports, our number of subsidies have come down towards resolution of some of those balances and some more subsidies which keeps getting closed, cleaned up, after we do a proper analysis of the tax accounting and the legal aspects. So, IVFM issues are still open. Some of them are open. Similarly, some of the inter-company world transitions are open. The biggest legacy matter, which is EMUTRA, where we are promoters, that also is being discussed and brought it out with the new insight.

Yes, sir, please.

Things you need to understand on that borrowing. One is that in India, after the rent issue of We brought that into the FDs and into the bonds and other things for parking those funds. And we found that it is beneficial for us not to bring those FDs because the loss on bringing the FDs is higher than the savings. So we are keeping those FDs and against the FDs, we take loans, short-term overdraft facilities, which gets used in the last few months because of salary payouts and all, which gets re-cooped So, at any month end or the quarter end, you will see the borrowing number goes up, but that's not the average number. Average number is hardly, maybe 50-20% of the balance sheet number. In case, repaid in the first week of, then, instead of making hefty, then we bring losses for that. So, these are more like working capital borrowings, they are not permanent We also have in U.S. a credit line which is utilized, but that number keeps coming down on a month-to-month, quarter-to-quarter basis based on the profits which are made in the U.S. and I think that's the reason for the short-term borrowings in the balance sheet.

Okay, understood. I have a follow-up on this legacy, like you have said that some receivables and payables are there. So, across what are the potential cash outflow is remaining?

The cash outflow is huge, and that's why we are not able to settle it. In some industries, ILCU has almost like say 900 crore to 1000 crore. The past legacy receivable payable, so it is within the group, and wherever we have, like say, understanding that these are not payable and we cannot generate enough cash, in FY24, we also wait some provisions for case that, and after that we continue to evaluate that every half year to see if there is more provisions or items required, so we continue to drop it up if there is more. It has not been the case in the last two quarters at least. So, thousand crore, to answer your specific question, thousand crore plus is the cash outflow which we don't have to do the transaction and that's why we approached RBI for doing a settlement of legal payable rather than physically cash movements.

Okay. And as you stated about eMudra, like in Q1, that eMudra matter was under investigation of economic offensive ring, and while the related group had indirectly acquired over 5% of the company's shareholding. So, what is the, like, status of that investigation? It will, like, in H2O, any financial or operational implication we can see?

Finished their investigation, and they have obviously used some of the eMutra team, that this complaint is not a criminal complaint. At the best, it can be a civil complaint. And we are evaluating that additional information which we received from EW and indirectly to whether we want to pursue this case further or whether we want to drop the case. So I think that clarity should emerge in the next 2-3 weeks or so or 4 weeks max. And special implication of this because there was no claim from their side, it was our claim and which we are not accounted So, if we get some money from them, obviously, it will be a one-time gain in future, but if we drop the case, there is no interest.

And, approximately, what will be the interest we get from?

If we made it public, the stock exchange was upwards of 100 crore, but there is a lot of calculations and there is a lot of assumption in that, We will have to be seen when the case is being heard and going to the next level. Our invitation is even if you want to go ahead, this is not the case which will get settled in one or two quarters. This is the case which will take maybe few years to get because this might go through a lot of litigation. So we continue to pursue and another reason for us to evaluate whether we want to do stable or not because there will be a lot of legal We are taking a holistic view of the situation and also taking a view, if we can still challenge that we want to pursue it as a criminal case or civil case.

Okay, and one last on a railtel dispute had entered into abbreviation as the equivalent provision had been made for a claim and payable. So, has there been any material development since then?

There have been multiple hearings which we started, arbitrators were appointed, three arbitrators, one from their side, one from our side and one common arbitrator from both the arbitrator sides. We have filed their statement of counterclaim, and both parties again had opportunities to present and dispute their other parties' claims, so that has been done. The witnesses have been identified and documented, and now the hearings will start with the witnessing. So, I think it will take maybe one or two quarters more before it gets into a shape where we can assess whether there will be any kind of exposure to us or not. As of now, whatever has been their claim, the base claim, not whatever they have added more obviously for the legal case, but the base claim as per the contract is already provided and it's there as a part of our provision in the balance sheet.

So, in this, like, any financial or execution risk will be there?

There's no execution risk now, because the contract is already closed, and financial risk we have provided for the base values. If there is any further liability comes as a part of the arbitration proceedings, then that might be our end-up process, This might include some interest or maybe any other kind of cost investment, but that I'm not expecting to be his.

Okay. I'm just sure that. Thank you. Thank you for the time and answer. If anything else, I will go on that bit.

Thank you. The next question is from the lineup. Saket Kapoor from Kapoor Co. Please go ahead.

Yeah. Namaskar, sir. Hope I'm audible.

Yes, I guess. Go ahead.

Yes, thank you firstly for the opportunity and for giving us a very detailed understanding of the numbered parts. Sir, as the segregation or the new nomenclature as defined by you, the digital engineering, cloud infra, and business processes, if you could just provide us the industry, end industry or the end user industry, which we are catering to partly.

So, business unit wise, the industry specification is more from the region or the geography and not from the businesses. Business line is open and we are creating solutions across all the business industries, but we have a matrix which has focus of the COEs with the geographies. To give you some example, like cyber security we are focusing everywhere, like say all the three regions we are focusing on cyber security and there our focus is more on the business industry and the telecom industry, there are two industries which we are focusing on the cyber security, but the solutions which we are creating is across all the businesses, like second one is like say ERP practices, in US we are focusing more on SAP, In Middle East, we are focusing more on MLC, and in India, we are focusing more on Oracle, while all the three ERP practices will be available for all the geographies. In U.S., we are focusing more on BFSI. Again, BFSI remains common across. BFSI is being our strong word. BFSI healthcare in U.S. is the second one, and the technology companies, the support of technology companies And in India, in addition to BFSI, it's government which we focus and some bit of retail and some bit of manufacturing. And all our solutions which we are creating is agnostic to the industry, especially the top C4 industries, not obviously all the industries, but top C4 industries. So, in summary, BFSI, telecom, IT companies, and retail, healthcare, and logistics.

Okay. Then, what kind of differentiation CRI offers since the industries which we are getting to have a larger span? So, what is the differentiation that has been created which will garner, which will allow us to garner more business going, right?

So, our differentiation has been more on creating subject matter experts from the respective industries. So, most important piece in any other solution in any other industry is that you should be able to talk and understand the customer business and customer requirements. I will not call it differentiation because I think most of the IT companies behave the same way and till now we have not been working like that. We have seen more as a Bufusai customer so when we go to a retailer or a healthcare customer, we still talk banking language. That's the change we are doing. So I will not call it differentiation as compared to the Thank you. or BFSI driven.

ASG has also become a very prominent aspect in today in all the businesses. So creating tools and functionality that helps us in predictability model also would be a good business opportunity for technology companies facing companies like us. So, what percentage of our grid pipeline is towards this ESG aspect, if I need? And second, just a second, yes.

First, please answer, and we'll come up with a follow-up.

So, very frankly, ESG has not been our focus. We don't have a separate product line or service line on the ESG side. We have a tool called NGRC, which is the governance risk and compliance framework. That's the product which we had created. And that's the product which we have, which we are working with a couple of resellers and distributors as well as to the direct customers Thank you. Thank you.

Thank you. I have two balance sheet questions, rather, and one business aspect. Firstly, the business aspect is about the, our pie of business coming from the Global Capability Center, the GCC. Our end customer phase or interface that are serving to the GCC platform. What kind of, can you give a segregate or quantify to us what percentage of business is directly growing to us through the GCC platform? Sir, the other one is relating to your balance sheet line item, property, plant, and right to use asset. So, that's a very different set of questions.

Okay, I'll answer both of them. So, I understand what you're trying to ask there. So, in the GCC, we are starting the new industry segment GCC. We don't have any major presence in the GCC segment today. Very short and sweet answer is that we are near zero in the GCC space. It's a different market segment and very different to handle these customers. We don't have internal expertise to manage GCC clients. We are setting up a, within our sales team, we are setting up a separate sub-team to manage GCCs, which we have in the market. On the rent-to-use assets, I think, so this is one of our locations. We have signed a long-term lease, which is five-year lease, I think, right? Yeah. It's five-year lease, and based on the accounting, you have to, like, say, show the rights-of-use assets for the next five years of rental, and then, obviously, over a period of time, that rental gets charged to the P&L. So, the right-of-use asset has certainly gone up in this half-year mainly because of that one long-term lease which was signed in one of our locations.

Okay. And about Goodwill also, sir, if you could show some more light, how this line item shares up and what effects are this number going ahead?

Sir, sir, Goodwill is constant. We are not adding anything to Goodwill. This is a historical Goodwill is actually part of that. Every quarter, because it includes Goodwill also in foreign currency, so every quarter, based on the forex fluctuation, that Goodwill is getting revalued and there is a penal impact to that.

And last point, then I'll join the two, sir. Do we have, I think, so we garnered some business from the Vedanta group also earlier, correct me there, sir?

No, no. We don't have any business with Vedanta or India. Maybe you may be confused that we got one business from Vedanta in Middle East. So that's a different group.

Okay, and they are getting to which segment, sir?

They are an IT services company, and we are working with them in a couple of big projects for the Middle East government.

There's a short point I'm trying to understand. When we pursue the long-term goals of 2030, this should be directly aligned to the industries, which will grow in leaps and bounds, and then will add to our revenue profile. So the category or the business verticals should be the ones which are anticipated to grow. So, that is the reason I was looking why my minerals, yeah.

Absolutely right, Saket, and that's how we have selected this industry, what I just mentioned. We have done a full detailed study around it, that in each of the geographies, what are the industries, what are the solutions, which are like the in demand, and where the CAGR is expected to be higher than other industries. And the choice of this BFSI health care in one country and retail logistics in another country and retail and transportation. So this is the way we have each and every geography. We have shortlisted industries based on their growth rate expected and the focus areas which the industries are focusing on, which matches with that such a three-way matrix, geography, business line, and the industry. Based on that, we did analysis in the last two quarters or so and then finalized this focus industries.

So, again, why I'm coming to the point is because we are seeing many industries opting to robotics and all in terms of the industrialization activities. So, how do we as a company offer them the solution-led because robotics and all will be enabled through the software programming and will be monitored constantly by a group of people having an understanding on the scale. So, mines, minerals, infrastructure activities, a lot of robotics, a lot of automation goes into what the growth which we are ensuring in the years to come. So, that was my question, that how is our company placed or our product offering placed to garner business out of the center?

We are not into the production robotics as of now, and I think we don't even have expertise. If we need to create expertise, we will have to evaluate it later. We are into the process automation, process robotics as of now, which is on automating the back-end processing and not the real manufacturing robotics. So, we are very clear that we are not into the robotics, the physical robotics at this part of time.

Can you explain, sir, where we are present? I do not got the understanding.

We are more into the process robotics, which is more process automations. Not the physical manufacturing automation.

Any example you can give me to understand? Can you give me an example? I am unable to comprehend it. What you are trying to explain, I am not able to understand this. Can you help me out?

So, Sankit, what I am saying is that in robotics or automation, there are two things. One is that physical manufacturing robotics, right? You are using your physical robots to speed up your manufacturing. Secondly is the, which is more of the process side, which is like that you are processing applications or processing claims or automation of those. So, we are more into the automation and process simplification of the process side, and not on the manufacturing line, the production line.

Okay. Thank you. Hardware and software at the same time. Correct, correct.

Because manufacturing is not our strong area, and we are not into focusing on manufacturing as an industry.

Thank you, sir. Thank you. Thank you.

Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Raj for closing comments.

Okay, thank you. I would like to thank everybody who has ran the call. It has been a good interaction, couple of homework points. I have taken it for myself. And thank you for your validated comments. See you next, Karan.

On behalf of 3i InfoTech Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.