Ladies and gentlemen, good day and welcome to Zensar Q4 FY25 Conference Call hosted by HDFC Securities. 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Amit Chandra from HDFC Securities. Thank you, and over to you, Mr. Chandra. Yeah, thank you, Operator. Good evening, everyone. On behalf of HDFC Securities, I welcome you all to the Zensar Technologies Q4 FY25 Earnings Call. We have with us Mr. Manish Tandon, CEO and Managing Director, Mr. Pulkit Bhandari, Chief Financial Officer, and a few other members of the senior management team. Before I hand over the call to Manish, I would like to highlight that the safe harbor statement of the second slide of the earnings presentation is assumed to be read and understood. Thank you, and over to you, Manish. Thank you, Amit. Hello, good morning, good afternoon, good evening, everyone. First of all, thank you all for taking the time to join us today to discuss Zensar's financial results for the Q4 of FY25. With me on this call are the CXOs, Pulkit Bhandari, CFO, Vijays imha, COO, and Vivek Ranjan, CHRO. I'm pleased to share that Q4 was solid quarter for us, marked by overall growth in all geographies and sustained profitability. While geopolitical uncertainties and cautious client sentiment influenced the broader market, our teams remained agile and committed, true to our purpose. Together, we shape experiences for better futures. In Q4 FY25, the company reported revenues of $156.8 million, a sequential quarter-on-quarter growth of 0.9% in constant currency. For the full year FY25, the company reported revenues of $624.5 million, yearly growth of 5.4% in reported currency, and 5.1% in constant currency. In Q4 FY25, our gross margins stood at 30.3%, sequential growth of 20 basis points quarter-on-quarter. In constant currency terms, on a quarter-on-quarter basis, our revenue in telecom, media, and technology grew by 1.7%. Banking and financial services saw growth of 3.4%. Healthcare, manufacturing, and consumer services witnessed a decline of 1.4% and 2.6%, respectively. In the current dynamic environment, we are partnering with our clients to deliver the best value for their investments, resulting in healthy traction. Our order book stood at $213.5 million, year-over-year growth of 17.6%. This is the Q3 in a row that our order book has exceeded $200 million. Our differentiated propositions in the AI space across all verticals and service lines have enabled us to capture client mindshare, and our AI-led pipeline continues to grow. The board of directors have reviewed the dividend policy, and considering the financial performance of Zensar, have decided to materially increase the dividend payout ratio to 40-50% consolidated profits from 26-35% over the past five years. This is subject to overall performance and any strategic initiatives that Zensar may take. In line with the new policy, the board of directors have recommended a final dividend of INR 11 per share for FY25, subject to approvals of shareholders. With this, the total dividend, including the interim dividend for FY25, will be INR 13, which corresponds to 650% of face value and 45% consolidated profit after tax of FY25. With that, I will now invite Pulkit Bhandari, our Chief Financial Officer, to provide an update on critical financial data. Over to you, Pulkit. Thank you, Manish. Good day, everyone. Thank you all for joining this call. I will take you some of the key business and financial metrics for the quarter ending March 2025. Revenue for the financial year 2025 stood at $624.5 million in US dollar terms, reflecting a year-on-year growth of 5.1% in constant currency terms. Reported revenue for the Q4 of financial year 2025 stood at $156 million, reflecting a growth of 0.9% sequentially in constant currency terms. On a year-on-year basis, revenue grew by 6.3% in constant currency terms. We have sustained EBITDA of 15.6% in Q4 FY25 on back of cost management and improved utilization, absorbed the continued impact of furloughs and Q3 FY25 benefit of leave utilization. Our PAT for the quarter stood at 13%. Some of the other key highlights are we added an order book of $213.5 million in this quarter. One of our key customers moved into a $20 million bucket due to deeper farming efforts. Our voluntary attrition stood at 9.9%, which has been lowest in recent years. Consistently adding headcount throughout the year, 353 net headcount added in FY25. BFSI continues to grow as a result of strong farming and hunting efforts. Announced strategic partnership with Tesco. On ESG front, we continue to retain our water positive status in FY25 and 100% hazardous and non-hazardous waste is diverted from disposal. In line with our global renewable energy goal share of 50% by end of FY25, we have achieved 56.9%. We have currently invested in additional renewable sources in Pune campus and augmented the existing solar with solar. we delivered a balanced performance on all operational and financial parameters. Revenue grew along with sustainable margins. With a strong focus on verticalization, deepening service line capabilities, and investing in solutions, we believe Zensar is well poised to capture upcoming opportunities. I will now invite Vijay, our Chief Operating Officer, to comment further on Q4 FY25 results. Thank you, Manish and Pulkit. Greetings, everyone. I will share details about our operational efficacy, service line performance, annual client experience survey, and AI journey. Our utilization increased by 170 basis points quarter-on-quarter and by 90 basis points year-on-year. associated with accelerated fulfillment and capability enrichment continued in Q4. We had a gross addition of 873 employees in the quarter and a net addition of 185 people. Our voluntary attrition reduced to 9.9% in Q4, which is a 10 basis points reduction sequentially and a year-on-year reduction of 100 basis points. The offerings from our service lines and industry services groups continue resonate well with our clients. The share of revenues from our service lines increased to 54.6% in Q4, which is 240 basis points higher year-on-year. On quarter-on-quarter basis, in constant currency terms, data engineering and analytics grew by 8.6%. Cloud infrastructure and security services grew by 1.5%. Application services and enterprise application SaaS grew by 0.3%. Experience services dipped by 1.1%. Advanced engineering services dipped by 2.8%. The annual client experience survey was conducted in Q4. Our experience index continues to be in the top quartile of the industry. We clocked our highest-ever scores on satisfaction, advocacy, and business value dimensions. Our four major solution stacks, namely enterprise solutions, responsible solutions, enterprise cognitive solutions, and multimodal solutions continue resonate well with our some examples of value delivered to clients are we modernized enterprise applications of a large US retailer from outdated technology to cloud by leveraging our unique GenAI solutions. This resulted in reducing TCO by 40% and reducing time to market by 50%. Similarly, we empowered a global human rights organization to build a smart decision engine powered by GenAI, integrating organizational assets across 170 countries, thereby improving efficiencies of knowledge workers by 50%. In FY25, we upskilled more than 50% of our workforce in AI or GenAI by leveraging the multilevel training programs of our Ignite Academy and as well as the various certification drives that we have instituted in collaboration with our alliance partners. With that, I now hand it back to Manish. Thank you, Vijay and Pulkit. Over to the conference call. Shall we open the line for questions? Yes. Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchstone 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 will wait for a moment while the question queue assembles. The first question comes from the line of Sandeep Shah with Equirus Securities. Please go ahead. Yeah, thanks. Thanks for the turn. And congrats on a good execution in a difficult macro. Just wanted to understand, looking at the volatile macro and higher macro concerns because of tariffs. Manish, if you look at portfolio mix, we have concentration in manufacturing and consumer, which is 27%, and healthcare and life sciences is 10%. So, roughly one-third or slightly higher as a percentage revenue as a portfolio may have a direct impact on the tariff-related issue or other measures announced by the US administration. Are you worried in terms of growth entering FY2026, or do you believe the order book, which has been really great in this year, will help us to navigate these challenges? The order book, see, as far as macro is concerned, Sandeep, first of all, thank you for the kind words on your side. As far as the macro is concerned, I mean, you would have heard from also. there is the first order effect, which is likely to impact much more on manufacturing rather than consumer services. Fortunately or unfortunately, our exposure to manufacturing and automotive is fairly limited, while for retail, it is slightly more. Of the 27%, I would say, majority is retail. We do not expect to be impacted as much. Healthcare and life sciences, again, I do not think there will be a significant downshift from a pricing from an overall perspective, primarily because these are relatively price-inelastic, it is an area. I mean, person who has to get a shot has to get a shot, irrespective of whether it costs $10 or $15. As far as the overall thing is concerned, I would say our order book is going to aid us through Q1 or Q2 max of this year. In fact, towards the end of the previous quarter, we started some rightward shift of demand, not really cancellations, but rightward shift of demand. From a demand perspective, I won't say I am concerned, but I would say that there is a lot of uncertainty. It is the uncertainty that is concerning. Thanks for the detailed answer. Very helpful. Manish, last conference call, also called out, if there are no major macro headwinds, we may aspire to grow at double digit or close to double digit. That aspiration remains because macro headwinds have gone up. Is there a new outlook or aspiration target you want to disclose? No, aspiration, see, Sandeep, aspiration is always there. Whims and fancies of one quarter, two quarter, of two, three months here and there, I don't think we should be changing our aspiration. We might be changing what is realistic, but at least at this stage, I don't want to change my aspiration. Okay. Okay. Last question, if I can squeeze in. Pulkit, just entering FY26, margins could be maintained at close to mid-teens. What I wanted to know, apart from wage hikes, there could be incremental headwinds through visa cost. Can you give puts and takes in terms of entering FY26 in terms of margin visibility? FY26, I think our triangulation is to basically stick with mid-teens. We would like to believe that mid-teens will give us adequate headroom on either sides. Hopefully, things will basically improve in the later part of the year, which should kind of further help us stick to this mid-teens outlook. Any margin on higher visa cost? Yeah. I'm calling out mid-teens, including visa cost. Okay. Okay. Pulkit, I think the question is, have you taken anything on Q4? Yeah. Q4, there is a marginal impact on account of visa costs, which has absorbed. what you see is after visa costs being accounted for. Okay. Okay. Thanks, and all the best. Will come in the follow-up. Thank you. Next question comes from the line of Nitin Padmanabhan with Invest ec. Please go ahead. Yeah. Hi. Good evening, Manish, Pulkit, Vijay. Congrats on the strong deal wins. See, from a deal win perspective, if you could just some thoughts on how the pipeline has been looking like after the strong wins over the earlier quarters. Considering the environment, do you think that you'll still be able sort of deliver maybe $180 million-$200 million range, or do you think that becomes a risk on a going-forward basis? The second is just a follow-up to what Sandeep was asking. Your thoughts from a TMT perspective as well. Yeah. On the first thing, see, our order book, a lot of these things started only in March or March so. things were very hunky-dory till end of January, mid-February so. we started some rightward shift in demand when this started. The problem is that, Nitin, I said, the problem is much more to do with uncertainty than with, I mean, nobody knows how the demand scenario will pan out because every day things are changing. One thing we have, I'm quite sure that the capital allocation investment dollars, which used to come to IT, are going to reduce in the short term because when the environment is uncertain, you don't want to do capital spending too much, which we are seeing even in TMT, moving the needle to TMT. You would have seen that a lot of the cloud providers have canceled or postponed their new data center projects, right? The problem, Nitin, as I said, is uncertainty. It is very difficult to figure out what is going to happen because of the continuous change in shift in policies that we have seen. I wish I could answer your question definitely, but I just go back to my original thinking, let's forget about the environment. Let's make sure that we are executing to the best of our ability, and let things stay up. Mr. Taneja, are you done with the questions? Mr. Taneja, are you done with the questions? Hello? Can you hear me? Yes. Mr. Taneja, are you done with the questions? No, I have to ask a question. All right. Continue. There was a brief silence. Thank you. Go ahead. Okay. Sure. Thank you once again, sorry for the technical issue. Manish, basically, I wanted to get your sense on a couple of things. Over the course of the last couple of years, you have focused in terms of improving the mining within your existing customer base as well as expanding into or pivoting the Hi-Tech vertical towards a new set of customers. Could you talk about the progress on this front through FY25, and how should we be thinking about this aspect in going forward? That is question number one. The second question is with regards to our on-site offshore mix. Once again, that is a metric we have continued to show progression. How should we be thinking about this now, given we have got to a level where we are almost on par with peers? Does it leave more room for improvement? Those would be my two questions. All right. Question number one, how are we progressing? I think we are progressing well on account farming, and that is reflected in the fact that the number of $20 million accounts has increased from four to six, Pulkit, if I'm not mistaken, and five to also, there has some increase. We are pleased to see that we are making progress on cross-selling and account farming, but it remains a work in process, and we have to continue to execute on that front. The second part of your question was what was the second part? Manish, this was about the on-site offshore mix. We've seen a continued improvisation on this front. On-site offshore, I'll tell you, I have said this before. Ultimately, we are a client-centric organization. We want to be a client-centric organization, and we are a client-centric organization. I am not going to push offshore if my client doesn't want it. I am not going to push on-site if my client doesn't want it. It is not a parameter that I try and control too much. I would prefer that this be determined by what my customers need rather than by what we are trying to achieve. I prefer to keep an eye on the margin rather than trying to marry too many parameters, looking at too many parameters and getting confused. Frankly, on-site offshore ratio is something that I consciously drive towards. Sure. Thank you. All the best for the future. Thank you. Next question comes from the line of Shradha with AMSEC. Please go ahead. Yeah. Hi. Congrats, Manish and Pulkit, on a good quarter. A couple of questions. First of all, how should we look at South Africa portfolio given recent developments of USAID being stopped there and in light of the exchange also in that particular country? South Africa is a key, it's an important market for themselves. It's one of the few markets in the world where we are in the top three, actually. Our revenues from that market are higher than most of our so to say. We view South Africa market as strategic from two perspectives. One is, A, we have a larger market share there and mind share there. We have the brand permission to do interesting and new things and try out new things, which then we use as case studies so on to open new logos or existing logos in the US and Europe. From that South Africa remains a key market for us as per plan. We continue to grow there. This year was a bit of an aberration, but otherwise, we continue to do well in that market. We have made an also. We have someone from India to take over that, 0\our senior executive, Kaushik Chatterjee, has moved South Africa or is moving South Africa to oversee that market. Right. In terms of demand, you indicated that you some right shifting of demand towards the latter half of March. Was there any change in demand trends in the month of April so far versus March? As I said, I mean, because of the uncertainty, there are, I mean, even my clients do not know what is coming down the pipe, right? One day, there are reciprocal duties. Second day, there are no reciprocal duties. I mean, most of my clients do not know what is coming down the pipe. As I mentioned in the call earlier, at least from a first-order impact perspective, our exposure to manufacturing and auto is fairly limited. Okay? We are not impacted as much some of the other players might be as of now. The second-order impacts, nobody knows just now. I mean, as I told also, much as I would like to be able to predict what is coming down the pipe, I do not think we are in a good position to see what is coming down the pipe. Right. Just one last question, Manish. We've seen three back-to-back quarters of very strong TCV. I understand the macro have turned a bit volatile, but given if we some improved macro conditions, do we expect a better TCV to revenue conversion maybe a quarter or two down the line? Our TCV to revenue conversion is pretty high, actually. If you look at last full year, the TCV reported is $776 million something, and our revenues are in the $625-plus million range. Of the $770 million, I think $600-plus million has happened in the last three quarters. Our bookings to revenue conversion is pretty phenomenal. You would expect to maintain the same range rather than further improvement on this metric? It's very good already. I don't think we should be looking at improving this metric. Got it. Yeah. Thank you. Thanks, Manish, and all the best. Thank you. Next question comes from the line of Amit Chandra with HDFC Securities. Please go ahead. Yeah. Thanks for the opportunity. My question is on the strong TCV number that we've reported. Obviously, the Q3 of strong TCV. In this number, was there any impact of any macro changes that started to happen at the end of March in this number? In terms of how we're progressing in April, you said that if we maintain this kind of TCV number, then obviously our growth number would be better than what we did last year. In terms of TCVs, if you also indicate how is the pipeline looking in terms of large deals and what part of the pipeline is AI-related? First of all, I don't know how many of you noticed there was this press release that we did on ESCO infrastructure thing. That was a large deal by our definition, and that's why it was a material deal. We reported it with the press release. reason for the good performance on the order booking is that deal overall. Regarding April, I mean, frankly, I have not looked at the April numbers very seriously as far as order bookings are concerned because mostly these numbers get finalized towards the end of the month when we close our books. I cannot give you a very definitive answer on that. From a pipeline perspective, I don't think there is any significant material change that we see as of now. Okay. On the AI part, what part of the pipeline or the deal TCV is linked to AI-related initiatives? Incidentally, we have just started tracking this metric, and I wanted to do it for two quarters before I start announcing it to the street as to what percentages we are looking at because currently, this was the Q1 we did it, and there was no benchmark available to do it. Needless to say that in every deal, we are tracking how much whether the deal is AI-influenced or whether that deal is selling of AI-related services soon, and we are tracking it closely. Hopefully, over the next couple of quarters, we will start reporting that number also. Okay. On the TMT vertical, obviously, we have started to some kind of stability there. We just try to assume that the issues related to the top client are mostly behind. In terms of the macros, which are not iterating, we will not see any further issues in the TMT also, in healthcare life sciences and MCS, like you mentioned, we do not have exposure to the verticals which are directly stressed to a higher extent. What is reason for weakness in MCS in this quarter? MCS, reason for the weakness, again, this is all relative. First, I'll take TMT. Don't read too much into TMT numbers because the growth there is furlough-related. Q3 has a lot more furloughs in TMT than Q4. Please do not read too much into those numbers. MCS, we were coming off a growth of about 7% sequentially quarter on quarter. There was a budget flush and holiday retail-related spending at a couple of accounts, which helped us. Obviously, things caught up a little in this quarter, and the same was the case with healthcare and life sciences. Okay. Lastly, on the margins, obviously, you said that the margins have been stable at around 15% levels, and we are planning to take it to mid-teens. In a scenario where we do not see any growth acceleration, also in that scenario, we have levers to maintain the margin at these levels? Mid-teens? Yeah. I mentioned mid-teens. Yeah. Pulkit, go ahead. The main point is they are in mid-teens range, and I think we plan to basically keep them in the same mid-teens range going forward as well. Anything over and above that will get invested back in the business, and that's what we've been kind of working towards. Yeah. Okay. Thank you. All the best. Thank you. Next question comes from the line of Sandeep Shah with Equirus Securities. Please go ahead. Yeah. Yeah. Manish, just wanted to update in terms of how many large deals we have signed in FY25. If I'm not wrong, the definition is about $25 million. How do you see the pipeline of large deals entering FY26? Do you believe FY26 could be a better year in terms of large deal closure versus FY25 because that effort and focus has just started in between FY25? Yeah. I would say two is what I remember, large deals. I definitely hope that FY26 will be better than FY25. Okay. Any commentary on a pipeline? How does it look like on large deals? See, there are two types of large deals. One where things are coming as RFPs in the market, and second is where you have to create large deals. The pipeline for where we are trying to proactively create large deals is very good. The pipeline for RFPs where anyway the probability of winning is very low, that is fairly muted, and that has been muted for us for sometime. Okay. Okay. Just for clarity, if later part of March has some delay in decision-making and right shifting, do you believe this may have a full quarter impact in April, May, June, or do you believe deals which we have signed are scheduled to start on our desired dates in terms of ramp-up? Yeah. I mean, you have to so the short answer is that what I was expecting, say, in January to do in Q1, I do not think that we will be doing that number in Q1. Okay? When you look at the next quarter, you always have an aggressive number in mind subject to conditions being stable, but the conditions have changed. I don't think that we are going to do what we thought in January that we will do in this quarter. Whether we are going to have growth or not, I can say that at least as of now, I see growth ahead in also. okay. Thank you. All the best. Thank you. Next question comes from the line of Nitin Padmanabhan with Investec. Please go ahead. Yeah. Sorry, I kept getting disconnected so I don't know if you have answered these questions. Broadly, I just wanted your thoughts on whether the deal pipeline sort of increased or gone down. Second, I wanted your thoughts on how is the sort of manifesting in your portfolio right now? Are you sort of pauses, delays, and is that quite meaningful in April? That is the other bit. Yeah, those are the two basic things. I think you did mention that as of now, it looks like we have growth, but if you could just contextualize these two things, it will be helpful. Yeah. I answered that, unfortunately, you got disconnected at that time. I answered that pipeline as of now, and pipeline is a very large number that we track. There is not much of a material change in the pipeline situation, but there me amount of right shifting of demand that we saw in March, which we are continuing to see in April. Okay? Hopefully, all this trade-related stuff is going to soon enough. As I said right in the beginning, the macro is not very strong, and that is reflecting in what we are seeing also. Right. Right. Got it. Got it. That's helpful. Thank you, Manish, and all the best. Thank you. Next question comes from the line of Girish Pai with BOB Capital Markets Limited. Please go ahead. Yeah. Thanks for the opportunity. Manish, you guys have struck a deal with Tesco. I think you mentioned it was an intra-deal. Was it a consolidation deal? So, what were the considerations that led Tesco to choose you versus an existing vendor, an incumbent vendor? No, actually, this was a business separation that Tesco Money Services TMS was doing. There some existing vendors or whatever, but we are actually setting up a complete greenfield environment in this separated business for the separated business. You can think of this as if you do a separated business, you do a transition service agreement, and then you get time to get the new thing going before you switch off from the transition service agreement. That is what exactly we are doing in this. Will there be investments or onboarding of? It's a greenfield implementation. Okay. Will you be onboarding any employees of Tesco, and will there be any knowledge transfer period between you two? This is no rebadging. This is a new implementation. Okay. Okay. Any vertical outlook you can give for FY26? How do you think various verticals will play out? For us or for? For you. At this moment, we seem to be doing very well in VFSI. We seem to be doing quite okay in MRCL, which is Manufacturing Consumer Logistics and Healthcare Life Sciences. We seem to be flattening out in TMT. This is the situation as things stand today. Things might change over the next couple of months, but that is how things look like as of today. Okay. My last question has to do with compensation. Have you decided to increase compensation this year? If that does happen, would it be around the same time you generally do it, and will the quantum be the same? No. We announced our compensation salary hikes effective 1 July. Typically, unless the sky falls on our head, we try to make sure that we take care of our employees and give adequate salary hikes as we go along. Yes, we have some amount of salary hikes for this year, but let's see how the market turns out in the next couple of months. Okay. One last question, if I may squeeze that in. Everybody seems to be interested in an initiative on the GCC side. Do you people have anything on that particular front? They are interested in GCC now. We have been doing GCCs for the last two years, and at least we are partners with at least three or four GCCs, and we have a very unique proposition on GCCs, which resonating very, very well with our customers. We have success stories, case studies to prove why we are the best in GCCs that are out there. If there is a GCC deal in which we are invited, there is a very, very high probability that we end up in the top two, if not win it outright. Okay. I just wanted to understand, is GCC more about staffing and staff augmentation, or you said you something unique. What exactly would that be? I think the GCCs, look, I don't want to give out a secret sauce, but it is, I would say, while our competitors look at GCCs as staff augmentation, we look at it as creating the right experience for the parent organization also for the employees of the GCC. That is what we do in this, but I don't want to let out a secret sauce. Okay. Thank you very much. If you have anyone, any clients who are interested, I'm happy to walk them through our proposition. Thank you. Thank you. Next question comes from the line of Naveen Baid with Nuvama Asset Management. Please go ahead. Thank you for the opportunity. Just wanted to check. I joined the call a little late. Was there any component of pass-through revenue for the quarter? I'll give you the answer. You want to take that? Yeah. I'll take that. While you may see traded goods, it's not pass-through because it's part of the overall deal construction, mostly managed services kind of transactions. I'll give you the exact number in 30 seconds. Do you have any other questions apart from that? No. That's it. 1.6 million. In general, we— 1.6 million. In general, we don't recognize resale so we do if you're some resale and all, we are doing we do net accounting. Net accounting. Okay. In cases where we are doing complete managed services where licenses also in our scope, in that case only we do growth accounting. Got it. That's helpful. Thank you. Thank you. Next question comes from the line of Manik Taneja with Axis Capital. Please go ahead. What was the adverse impact of lower number of working days in GFM? How does this arithmetic stack up when you think about the same dynamics for April, May, June compared to? Vijay, you are the specialist on this, I guess so you will have to take this. Yes. Look, I think in Q1, there is a higher number of working days, and the impact is very difficult to predict right now, given the fact that I think there is still a lot of volatility in terms of client budgets and stuff like that. For us, I think many of the things that we have is fixed capacity/fixed milestone-based stuff. So, that also kind of will not be impacted by the number of working days. sorry, Vijay, I understand that, but if you can just help us understand because my sense is there is at least two more working days in April, May, June. I know there are a lot of— Look, the working days is different across different geographies. If you look at Europe, this quarter, much lower. US, I think, is whatever, one extra day. And India, we have two, three days. Yeah, it varies. Depending on the business mix where the work happens, yeah, we will obviously get the corresponding benefit of the revenue numbers because of the higher working days in T&M. Sure. Sure. Thank you. That's quite useful. Thank you. Next question comes from the line of Devendra Pikulhankar with an individual investor. Please go ahead. Hello. Hello? Yes. Hi. Thanks for the opportunity. I just wanted to hear, a partner with Tesco, that Tesco, how much revenue will be generated and when it will be commissioned? Hello? We do not call out specific revenues. Okay. Hello? Yeah. We do not call out any client-specific sorry, we'll not be able to take that. Yeah. Okay. Okay. Thanks. Okay. Thank you, sir. A reminder to all the participants that you may press star and one to ask a question. Once again, a reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Girish Pai from Bob Capital Markets Limited. Please go ahead. Yeah. Manish, with the uncertainty that is there, has the competitive intensity gone up, and have players started bidding more aggressively on whatever business is out there? If the demand shrinkage happens, then the competitive intensity will go up without a doubt. Again, it is too early to call it out. Remember, the first major disruption has been caused by tariffs, which were first really announced at a global level only on April 2. Today is April 25. It is difficult to—and also there is a lot of uncertainty. I can tell you that if there is a demand compression, then competitive intensity will increase. Okay. Some examples of GenAI where you've generated a significant amount of productivity gains for customers. Are the savings being plowed back something new, or are the savings somewhere else, like giving out big dividends or buyback of shares something like that, or it still remains in the IT services spend area? It depends on what kind of—see, first of all, whatever are the benefits, we will always share it with the client. We will not—I mean, no client will allow you to—the industry is relatively mature. No client will allow you to make abnormal gains overall on a consistent basis. We are using AI primarily as a differentiator and as a competitive tool to win against competition and to create an enriching experience for our clients and our employees. At this stage, it is too early to say that there some significant benefits which are coming to our bottom line. If that was the case, we would have actually increased our margin percentages, but that is obviously not the case. No, no. I wasn't discussing about benefits to you. I was talking of savings generated for customers, and the customers are reinvesting that into IT services, or is it somewhere else? I think, see, what AI is doing really is one is projects which are marginal from a business case perspective. If you lead with AI, then it is easier to make the business case for them. For clients, certain marginal projects become attractive to do if you use AI. That is one thing that is happening. Second is the savings that the client is generating is mostly going towards IT itself. It is not that it is going towards—I mean, it depends on the business case, obviously, but mostly it is—I mean, nobody is saying—no client is going and no CIO is going and telling his board that, "You can cut my budget now that I have started using AI." At a macro level, you can say that mostly if you're delivering IT savings, that is being reinvested in the IT side of the business. Okay. Thank you. Thank you. Next question comes from the line of Nithin Padmanabhan with Invest ec. Please go ahead. Yeah. Hi. Thank you for the opportunity again. Manish, in the current context, how are you looking sort of any uses opportunity for anything specific maybe in terms of acquisitions or any standout situations or opportunities sort of come across to you that you could do in the current context considering the weakness? We are actively looking at acquisitions, but the uncertainty works both ways. If there are attractive assets available because of the uncertainty, then also need to take care of the uncertainty on my side, right? We are a publicly listed company. We have to deliver quarter over quarter. We are not a private equity-driven enterprise where you get two, three years to turn things around. You can buy assets for cheap and turn them around, right? Uncertainty works both ways. While you might get assets for cheap, also need to make sure that the cheapness is temporary, not permanent. That is a difficult call to take. To answer your question, we continue to look at assets on an ongoing basis. If we find anything attractive, we will go for it. We have the cash on the balance sheet to make it happen. Sure. That's helpful, Manish. Thank so much, and all the very best. Thank you. Ladies and gentlemen, due to time constraints, we have reached the end of the question and answer session. I would now like to hand the conference over to Mr. Manish Tandon for closing comments. Thank you. I think, first of all, thank all of you for being here. I know it's a Friday evening in India, and I'm sure you have many more, much better, and interesting things to do. As we close this year, I want to take a moment to acknowledge the well-rounded performance we have delivered. In a landscape marked by geopolitical uncertainty, shifting client priorities, and macroeconomic pressures, our organization derives confidence from our strong client satisfaction scores, robust order book, and a healthy pipeline. Thank you very much, and please enjoy the rest of your evening and have a great weekend. Thank you. On behalf of HDFC Securities, that concludes this conference. Thank you for joining us. You may now disconnect your lines.