Ladies and gentlemen, good day and welcome to Q4 FY 2024 Earnings Conference Call of Allsec Technologies Limited, hosted by IIFL Securities Limited. 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 the attached phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Balaji Subramanian from IIFL Securities. Thank you, and over to you, sir. Ladies and gentlemen, good evening, and thank you for joining us on the post-Q4 FY 2024 results conference call for Allsec Technologies Limited. It's my pleasure to introduce the senior management team of Allsec who are here with us today to discuss the results. We have Mr. Naozer Dalal, CEO, Mr. Gaurav Mehra, CFO, and Mr. Kushal Maheshwari, Head of Investor Relations. We will begin the call with the opening remarks by the management team, and thereafter we will open the call for a Q&A session. I would like to now hand over the call to Mr. Kushal Maheshwari to take proceedings forward. Thank you, and over to you, Kushal. Thank you, Balaji. Good evening, everyone, and thank you for joining Allsec Q4 FY 2024 and full year FY 2024 earnings call. The information, data, and outlook shared by the management during the call is forward-looking, but subject to prevailing business conditions and government policy. All forward-looking statements are subject to economic growth or other risks faced by the company. The results and presentation have been uploaded on our website. Please refer to slide number two of investor presentation for the safe harbor clause. With that safe harbor, I will now hand over the call to our CEO, Mr. Naozer Dalal, for his opening statement. Over to you, Naozer. Thank you, Kushal. Good evening, everyone. Thank you for joining our Q4 FY 2024 and full year FY 2024 earnings call today. Look forward to interacting with all of you as usual. I have with me my colleague, Mr. Gaurav Mehra, Chief Financial Officer. You'll be pleased to note that full year FY 2024 has pretty much been a breakout year for Allsec in all respects: significant uptick and stellar financial performance, revenue profitability, cash generation, completion of the projects to upgrade our key platforms, SmartPay 4 and the second version of HRMS, new customer acquisition, mining of existing accounts, and good improvement in the customer Net Promoter Scores for which we do audits and a survey year-over-year with our partners. Finally, portfolio restructuring. We have completed the sale process of our Labor Law Compliance business, but it'll be done 30th April. The initiative driven by the team has resulted in the highest ever revenue and profitability for the year FY 2024. Further, the board of directors have recommended a final dividend of INR 22.6 crores at the rate of INR 50 per share, subject, of course, to shareholder approval at the ensuing AGM, which brings the total dividend payout for the full year at INR 68.6 crores, which will be INR 45 a share, 2.25 x of the previous year. I will now proceed with giving you a brief business overview covering our lines of businesses and follow it up with a detailed financial performance. Post that, we'll be happy to take your questions. We'll start with some market headlines. Q4 FY 2024 revenue from operations at INR 130 crores is up 8.3% quarter-on-quarter and 20.1% year-on-year, led by growth in both our businesses, CXM and EXM. While the CXM business grew at 10.4% quarter-on-quarter and 29.3% year-on-year, it was also heavily supported by EXM business with a 4% growth across year-on-year and sequential basis. Important to note that the performance of EXM also includes our Stat business, which historically has had lower profitability margins and lower growth margins. Excluding that, even our payroll business has grown very, very close to what our CXM business has grown, which is 6% quarter-on-quarter and 13.1% year-on-year. For the full year, the revenue grew by 20% year-on-year, with underlying business of CXM growing by 24%, EXM growing by 13.5%, and of which, again, as I mentioned, payroll grew by 18%. We have added new employee records in excess of 400,000 in H2 and now process 1.32 million employee records at the end of March, remaining the clear market leader in the managed services space, being 20%-30% higher than competition volume. Our staff attrition was maintained at 7.2% per month for Q4, which continues to be near best-in-class in the domestic outsourcing industry. Our cash position and collections continue to be robust. Our collections for quarter four increased to INR 131.2 crores, up by INR 6.9 crores quarter-on-quarter. I will now provide a progress update on the two tech projects, SmartPay 4 and new HRMS we have been working on, being strategic initiatives. We have onboarded our first customer on SmartPay 4 in this quarter, and now have a full transition plan in place to migrate all our customers by the end of this financial year. We have commenced our go-to-market strategy for our upgraded HRMS, started with market reach-out. We have a marketing plan. We have done a few demos and hope to get further traction on the same in the remainder of this quarter and in the Q2. We'll move to our sales achievements. We have signed EXM sales with ACV of INR 7 crores in Q4, up from INR 4 crores in Q3. For FY 2024, we have achieved sales of ACV INR 27 crores, 35% higher than the previous year. We have added marquee logos, including targeted conversions of mapped competitor logos. We have increased the contribution of international sales to total sales by 12% in FY 2024 over FY 2023, and we'll further accelerate the focus on international EXM sales in FY 2025. In EXM, we have added new LOBs in the healthcare account, which we had done at the end of the previous financial year, and also added two new logos, aggregating to just under INR 100 crore ACV for the year. We continue to progress on the journey of operational and cost efficiencies we embarked upon earlier in this financial year, with focus on payroll process for employees as a key metric to track, and this has improved by 10% year-on-year. Higher share of international and cost savings from operational efficiencies have enabled us to improve EBITDA margins by 200 basis points over FY 2023, even after absorbing salary and other inflation. Now coming to our operations performance, we're meeting operational KPIs remains strong for both CXM and EXM, including being named as the best partner in some of our customers' league tables. We continue to provide value-added services to our customers, including but not limited to point automation, bundling RPA in our solutions, etc. We continue to receive high ratings and increasing feedback on social media, Glassdoor, and AmbitionBox, a direct outcome of our continued focus on employee engagement. We also continue to encourage our employees to participate in the corporate social responsibility activities of the company. We now close with a detailed financial performance for which I'll ask my colleague, Gaurav, to brief you on the same. Thank you, and I'll be back for questions. Thank you, Naozer. Hi, good evening all. It's a pleasure to reconnect with you all for the Q4 updates. I will read Allsec Q4 and full year financial results. We continue to build upon our growth momentum, and our number speaks more of that. First, I will read quarter results. On revenue front, revenue for the Q4 quarter is INR 129.7 crore, an increase of 20.1% on YoY basis and 8.3% quarter-over-quarter basis. On YoY, CXM business grew by 29.3%, and EXM business grew by 4%. On quarter-to-quarter, we had a growth of 10.4% for CXM and 4.1% for EXM business. Growth is driven by both addition of the new logo as well as mining the existing customers, both across both the verticals. Our CXM FTE grew by 9.5% on year-over-year basis and 1.7% on quarter-to-quarter basis. For EXM business, we won 11 new logos during the quarter for the ACV value of INR 7 crores. Our international business contribution increased by 39% for CXM during the quarter on YoY basis and 13.3% on quarter-over-quarter basis. Our EXM payroll grew by 13.1% during the quarter on YoY basis and 6.1% on quarter-over-quarter basis. Moving to Q4 margins, EBITDA for the quarter is stands at INR 35.2 crores. There has been significant EBITDA margin expansion, and EBITDA grew by 43.3% on YoY basis and 15.9% on quarter-over-quarter basis. CXM quarterly segment margin is increased by 13.2% on quarter-over-quarter basis and 77.2% on year-over-year basis. EXM quarterly segment margin is increased by 18.1% QOQ and 47.7% on year-over-year basis. Margin growth is led by increase in international business, improvement in our productivity, which is Payslips per FTE, add of new logos, and cost savings measures. PAT for the quarter is INR 20.7 crore, an increase of 84.1% quarter-over-quarter and 71% year-over-year. PAT percentage is 16% for the quarter. PAT percentage is increased by 660 basis points on quarter-over-quarter basis and 480 basis points on year-over-year basis. EPS for the quarter is INR 13.6, an increase of 84% quarter-over-quarter and 71% year-over-year. Moving to full year financial results. Revenue for the financial year FY 2023/2024 is INR 469 crore, growth of 20.2% on year-over-year basis. EBITDA for the financial year is INR 116 crore, growth of 13.7% from last year. EBITDA margin increased by 200 basis points on year-over-year, and FY 2024 EBITDA margin is 24.6%. PAT for the financial year is INR 64 crore, increased by 31% on year-on-year basis. PAT percentage for the financial year is 13.6%, increased by 110 basis points on year-on-year basis. OCF for the financial year is INR 91 crore, an increase of 28% compared to last year. EPS for the financial year is set at INR 42. It It grew of 31% on year-on-year basis. With this, I conclude update on the financial results and pass it back to the moderator for taking your questions. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star one on your touchtone telephone. If you wish to remove yourself from question queue, you may press star two. Participants are requested to use handsets while asking the question. Ladies and gentlemen, please wait a moment while the question queue assembles. First question is from the line of Raghuram N S from EurIndia Ventures. Please go ahead. Yeah. Just wanted to first congratulate the entire team of Allsec for delivering an amazing set of numbers. It must be a very satisfying thing to get Allsec to deliver so consistently from all of us. Many congratulations. Just wanted to ask a couple of questions on both EXM and CXM. Let me start with CXM, which has been the standout business, at least over the last couple of quarters. I remember both Naozer, you, and Mr. Pinaki Kar during the press conference calls, during our investor calls, that there were revenue contracts very much in place for the entire expansion that was being planned in Manila. So that has obviously already concluded, and there has been growth, which has already been seemingly successful in all quarters coming through. How do you see the next three quarters in terms of the growth continuing? Mr. Pinaki Kar, I remember mentioning that for the next three or four quarters. Last, this was about a couple of quarters back. There were no issues from a growth perspective. It was just going to be how well we would be able to deliver. Is that scenario continuing, or do we see some kind of a plateauing of growth going forward? That was the first question that I had on CXM. The second question was on the EBITDA margins. Obviously, because the entire growth on CXM has been led by Manila and international business, we have seen the EBITDA margins clearly being ramped up very significantly. Is that something that we can expect going forward to continue and maybe even expand slightly? Now coming to the EXM business, I had a couple of questions. Obviously, there has been some you can say, like you mentioned, Naozer, that on the payroll side, the business growth has not been very, very low. Including the compliance, the business growth has been maybe muted. But now with compliance no longer in the business profile, how do you see this business really responding in terms of growth year-on-year? And the second question, obviously, on the EBITDA and margin side, there has been a significant increase in the EBITDA, as Gaurav also mentioned. The segment margin has increased year-on-year nearly by 47%, from 26.8%-38%. Is this something that is sustainable, and what kind of a trajectory does it have going forward? So total of four questions. Thank you, Raghuram. Naozer, if you can please answer the question. Sure. Sure. Yeah, no, thanks. Thanks, everyone, for your kind words. Always happy to interact with you and get your feedback and also your compliments. Thank you. Coming to the first question on CXM, yes, you're right. We are pretty much now near full capacity in Manila. Yeah. So for our growth, we will have to sort of keep our options open in terms of whether there are even more cost-effective and current accretive options in Manila, or we continue to sort of grow in central Manila as we are. So that's the conversation we are doing. Both are existing customers who are in Manila. We continue to see how we can mine those, including trying to get new lines of business or growth in existing businesses. We have some idea in terms of how that growth can happen. But of course, in mining, we cannot have a full year view in advance. It has to be quarter-on-quarter and believe in terms of how the mining effort would happen. On the new business, what we see is that we are trying newer initiatives to sort of get new customers. We have Matt Fields, a person in the U.S., effective 1st of March. We have some bit of vacancy there, which lasted a couple of quarters, and we found the right person. So he's showing some early promise. We are tied up with a local firm to do account-based marketing, which means that we target SME customers. We target the two verticals which we want to where we believe we have now got a reasonable mass, which is BFSI and healthcare. Yeah. We believe that, but even there, we believe that some of the revenues for the new business should only start beginning from Q2 and not grab with that. And that is how we have also built into our plan in terms of the new business coming in from last year in the Q2 of this year. Coming to EBITDA margins, I think yeah. Of course, as you know, the EBITDA margins of CXM also have a large reasonable base of the domestic business. And of course, as you're aware, they're not growing in the domestic business. So therefore, whatever incremental margins come would largely come from growth in the international business, including Manila. Or of course, we deliver international business even out of Chennai. So I think it's a mix of both. Again, there, we will continue to see as to how we can make incremental improvements in EBITDA as we go forward, largely driven by the growth percent or the growth composition into the international business. Coming to EXM, as I've said in the previous calls also, we continue to believe that we can definitely grow in excess of 20% year-on-year, if not more. So I would say that I would put a range between 20% and 25% in terms of where we will grow the standalone payroll business. And as far as EBITDA margin is concerned, I would just like to point out that the 38% margin has about 3.5% baked in there for the one-time activities which we do in Q4 on the tax vouching. So if I and then some of that gets directly passed under the bottom line because we have, again, managed that in a more cost-effective manner this year. So if I adjust for that 3.5%, the quarter on quarter is about 1% more. And yeah, so we should I mean, the long-term target is that we should be stabilized around the 35% mark without runoff for this year. Okay. So obviously, one could hear the level of confidence on EXM. On CXM, the same kind of growth should be visible, at least for the next four quarters. Obviously, there are people on training, and there are people who will get deployed onto the production floor over a period of time. So is that something that one can take into account, that the revenue growth will continue in a very similar kind of trend like how it happened in previous years? Yeah. I mean, I believe that even for CXM, like Raghav said, that the new business will start beginning largely from Q2. But on a year-on-year basis overall, I mean, I would expect to grow, again, in the high teens, the early 20% range. Okay. So last year was maybe about a 30% kind of range. It's something that will moderate over the next three, four quarters? No. Last year also was about 23.8% for the full-year growth. So yeah, so we are pretty much in that similar, it's not marginally lower. It's for some reason. But otherwise. Similar kind of growth rates. On a full-year basis, yeah. It's difficult for me to comment on a quarter to quarter on CXM because, as I said, the new business will come in only by July, and it may be lumpy, so. This INR 100 crore that you mentioned about the ACB, is that something that is still flowing through, or is that something that more or less is now built into the quarter? Some bit of it is flowing through, but yeah, some bit of it will show through. So that's where we are looking at it. So the growth will come both from, I mean, a full-year, in fact, it will come from mining existing customers, and it will come from the new business which we'll acquire. Last question from my side. The ACB of INR 26 crore that you mentioned, new sales, that was only in Q4, right? That's right. That's right. Yeah. Okay. Thank you so much, Naozer. Thank you. Thank you. Thank you, Raghav. Thanks for the question. Thank you. The next question is from the line of Harsh Kundnani from Aionios Alpha. Please go ahead. Yeah. Thanks for the opportunity, and congratulations to the management for a great set of numbers. Just a couple of small questions from my end. In the EXM business, we have seen new logo additions, strong new logo additions in all the four quarters. But just that, in this particular quarter, the employee records or the payroll process, that is down or rather flattish on a quarter-on-quarter basis. Any reason for that? And the second question, in the CXM business, I think you mentioned in the opening remarks. But just to clarify, has the healthcare client fully ramped up, or there is more to come in the following quarters from that particular client? Sure. Thanks. Thanks, Harsh. Yeah, just to quickly clarify, there are two reasons. Sorry to interrupt, sir. I just request you to can you just come a little bit closer to the mic? Sure. Is it better? Yeah. No, it's better, sir. Sure. No, I was saying thanks, Raghav, for the question. The answer to the first question lies in two facts. One is the market dynamic where customers who have signed up with us, even if we have to Q2 or Q3, in fact, do not like to sort of migrate in Q4. There's some of that I mean, the HR teams of the organizations themselves are busy in the year-end tax and the compliance and the appraisal cycles. We also I mean, from our side, also, I mean, we ourselves get busy with a lot of one-off activities for our customers, including tax vouching, which I mentioned, which gives a uplift of Q4 revenues and profitability. We get into the preparations for the Form 16 in terms of checking quarter by quarter and ensuring the accuracy. So that's the market dynamic where, in spite of that, we added about 20,000 payslips this quarter. Sorry, apologies. 10,000 payslips this quarter. What did happen was that Q3, we worked for one of the leading e-comm players. In Q3, we had a temporary headcount of almost about 20,000-25,000 from that e-comm player. That headcount went away. So we had some growth, but there was a larger temporary number in the Q3 results. So therefore, you see the Q4 results our Q4 employee records flat. On the healthcare bit, yes, we have largely seen the growth of the expected numbers where we were leading in the existing lines of business. I think we are pretty much getting there by this quarter. But as I mentioned, we will continue to work with that customer also to see if there are incremental lines of business or fresh growth in those existing lines of business because our continued superior operational delivery. All right. Thanks for this, and all the best for the future. Thank you so much. Thank you. The next question is from the line of Darshil Jhaveri f rom Crown Capital, please go ahead. Hello. Good evening, sir. Thank you so much for taking my question. Hope I'm audible? Yes, please. Please go. Yeah. Yeah. Yeah. Yeah. Hi, sir. So some of my questions have been already answered. I just wanted to ask you in terms of the demand environment in what we see at a macro level currently, how is it all flowing through? Do we see some resistance, or how is the environment currently so? No, no. No real comments in terms of, I mean, either improvement or a diminution in the demand environment. What we continue to see is that corporates are pretty open to doing payroll or other parts of the HR lineage and outsourcing. So even corporates, so we do see RFPs coming in where currently, the payroll may be in-house, but they're happy to consider outsourcing. So we continue to see that dynamic. And no, no real change. As I said, I've not seen any either an uptake or a downtake in that. So demand environment is pretty much stable from what we saw through the first three quarters. Oh, okay. Okay. Perfect. And so just wanted to just confirm one more thing. We are expecting around 20% growth in EXM and around high teens growth in CXM business, right, sir? And similar margins as we've done in FY 2024, right, sir? Yes. That's right. Yeah. Okay. Okay. Okay. Okay. Perfect, sir. Thank you so much, sir. Nothing more from my side. Thank you. Thank you, Darshil. Thank you. The next question is from the line of Jyoti Singh from Arihant Capital Markets. Please go ahead. Yeah. Thank you for the opportunity. Sir, congratulations on the strong set of numbers in this quarter. Sir, my question is on the growth side. So overall, we are expecting similar 20%-25% growth. If you can guide us on the margin side, what are our expectations for the FY 2025 and what margin driver for us? Apart from this, in cash flow, there is actually, in balance sheet, there is a INR 8 crore asset classified as held for sale. So if you can explain on that side. Fourth question on the platform transition side that we are doing in this year. So is any cost involved or anything so you can explain on that side? Thank you. Sorry, can you repeat your question on the platform? A platform transition that we are upgrading HRMS. Reminder, we are doing transition in this year. It will charge cost for the customer or for us? Okay. Let me go for a second, Jyoti. Sir, Jyoti, thanks for the question. So yeah, I think growth and margins are already covered both in my opening remark and in my answer to the earlier question that we believe that we should be able to grow the respective businesses anywhere between 80 and 20%-25%, depending, of course, largely in terms of how the new sales pan out. So that new US sales is a key determinant in terms of where that number lands. But even on the downside, I don't expect EXM sales to grow lower than 80% roughly, I mean, or thereabouts. Margins, definitely, we will maintain. We will have to make some investments. So again, the intention is that the higher international proportion which we are achieving year on year and the operational efficiencies which we largely do in the EXM business should be able to enable us to make those investments bear both the wage and non-wage inflation and still give an uptake in the EBITDA at the end of next year, a small uptake in the EBITDA at the end of next year. And as far as the held for sale number is concerned, that largely relates to our LLC transaction, which was a sale of our labor law compliance business to Quess Corp. The formal financial closure of the transaction happened only on 30th April. So therefore, as per Indian accounting standards, I mean, we have to classify the business and the assets linked to that business as assets held for sale. And it's really that. On your question on platform, yes, we have already, as mentioned in one of our earlier calls, the cost generating to those are already in the balance sheet. Those will be amortized over an appropriate period of time, again, as per largely market practice and accounting standards. Okay. Thank you so much. Yeah. So there are no incremental costs expected on those platforms, at least for this year. Of course, if you have to make some small add-on investments to keep those. But I don't see anything significant, at least for FY 2025. Okay. Thank you, sir. Thank you. Thank you, Jyoti. Thank you. The next question is from the line of Swechha Jain from Whitestone Financial Advisors. Please go ahead. Hi, sir. Thank you for giving this opportunity. Sir, am I audible? Yes, please. Okay. Sir, a few questions. So one is actually just a follow-up to the earlier participant questions, but I have a little the spectrum of my questions is broader. So not just in terms of FY 2025, I just want to sense from you, what is your vision in terms of revenue for next two to three years for us, both for EXM and CXM? And what kind of margins do we look at from a broader perspective, like three to four years down the line? And if we were to monitor this progress for us, like if you have a vision for three years down the line, this is the number that we want to reach, what would be the key metrics that you would want to track so that we can reach the revenue and the margin numbers for us? One was that, sir. Second, in terms of the new businesses that we have done in the CXM, could you give some sense as to which sector, what kind of clients, and what kind of logos have we added? Also, any logos that we have lost to competition, both for our EXM and CXM, and for both the businesses, would you be able to give a sector-wise breakup, that this percentage of revenue is from healthcare or otherwise? And also, how important for us is the payroll piece for the overall vision that we may have for three years down the line? So would that be the main growth driver for us? No, that's all, sir. Sure. No, let me try to sort of answer instead of that. Swechha, unfortunately, we don't give out significantly forward-looking statements. So I will not be able to give you a revenue or an EBITDA number which I can achieve maybe four years later. But what I will say is that, yes, we will continue to see above-market growth in both our businesses, CXM and EXM. And the growth we have achieved this year, we've tried to replicate that because, of course, after having set the benchmarks, I mean, we wouldn't like to sort of deviate from that. But so that gives you a broad sense of in terms of where we are likely to be in the future. As far as the new business acquisition in CXM, I think it's a mix of both. I mean, so as I mentioned, BFSI and healthcare are two of our key logos, some key verticals in BFSI. Sorry, in CXM, of which BFSI is almost about 60%-65% as of now. But with the growth in healthcare, which is happening this year, I mean, that number will come down. And what we have seen this year is a mix of both. So new logos and mining of existing logos in healthcare, mining of existing accounting in BFSI. So that's been the composition of the new CXM business this year. No significant logos lost to competition. Allsec continues to have a superior retention rate of customers, which has been a track record over the years. And as far as the payroll business is concerned, yes, I think it's an extremely important business for us for two reasons. One is that we are the clear market leader. So as you may be aware, we are the number one payroll services provider in the country. It has a direct linkage to the growth story of India and the formalization of employment, which we have seen over the past couple of years. Thirdly, it is definitely a business which gives us high margin potential. So we would continue for these three reasons, continue to, I mean, look at this business very closely, make appropriate investments as required, and continue to grow this business. And so EXM currently is a larger business. But within CXM, we remain sort of, if I may, a player which is a very niche player catering to SME customers. But EXM, we definitely are a market leader, and we would like to continue to participate in a business and grow a business where we have leadership positions. Right. Right. Okay. So just a follow-up. So am I right to assume that even from a five-year vision perspective, it's the payroll business which is going to drive the revenue and margins for us? Or do you think CXM at any point in time can become as big as payroll, which is today? No. CXM is anyway bigger than payroll this year at the moment. I think there's some confusion. So our current CXM business is roughly about two-thirds. I mean, maybe next year it may come down to maybe 60%. But this year, our CXM business is 2/3 and EXM is 1/3. So I think the more relevant question is that at what point in time can both businesses become of equal size? But unfortunately, they haven't done the math, sir. And And I don't know how that I guess. So the right question would be as to when EXM could sort of could we have the. Yeah. Sorry. What I meant was yeah. Sorry. I just got confused between that. Yeah. Yeah. So what I meant was, could EXM start contributing? No. I mean, I don't know how that a number at this point. But definitely, we will continue to grow both businesses to the best extent we can. Okay. Okay. Thank you. Thank you. And yes, as I said, I mean, to give you an indication, I mean, in one year, I mean, I mean, the needle between EXM and this thing may move by about 3%-4% kind of thing, sir. But that can change, sir. Okay. Okay. Okay. Thank you, sir. Thank you. Thank you. Thank you. The next question is from the line of Raghuram from EurIndia Ventures. Please go ahead. Yeah. Just a follow-up, Naozer, on the discussions that we have been having over the last couple of quarters also. Obviously, there is still even after the dividend payout, after the final dividend also, there is a significant amount of cash which is still sitting on the books of the company. And there has been talk of expanding the healthcare services that service offerings that we offer to our healthcare clients and maybe through organic or inorganic means. Is that something that's still on the table? That was something that slipped my mind to ask in the first go that I had. No, unfortunately, my approach with you this year is that I've been saying that we continue to look at it. I mean, we will have to. We will continue to balance the niche capability acquisition, the reference ability, the market endorsement, which an acquisition we get, is going to be what we have to pay for that acquisition. So we were, I mean, looking at some assets which have got contributed with other players at a much higher number than what possibly we could have or we were talking about. So I mean, I'll suffice it and leave it at that. But we'll continue to explore opportunities in the market. So I mean, what I can say is that the management is completely working on it. We'll continue to explore, evaluate as we get opportunities. But nothing significantly comes here at this point in time. Okay. But we have not really put together an organic way of, for example, entering the RCM business or something like that. Is that something that we haven't really seen on the ground from a team, you can say, getting a team on board kind of a perspective? That remains on the table. It's just about whether we go down that route or whether we go down the acquisition route. So I mean, our focus last year was to see whether we can get that right acquisition. We will spend a couple of more months to explore. If we believe that I mean, for some reason, we are not able to go down that route, definitely, what you say is there in our mind to see whether we can build this business organically. But it may take a lot more time, and it may require also upfront investments, which we'll start paying off only later. But yeah, it's definitely in our mind to consider. Okay. Thanks, Naozer. Thank you. Thank you. Before we take the next question, a reminder to all participants, you may press star and one to ask questions. The next question is from the line of Swechha Jain from Whitestone Financial Advisors. Please go ahead. Hi, sir. Just one follow-up. Would you be able to give the sector-wise breakup for the EXM business, who are the key industry for whom we do the payroll, the revenue breakup in terms of percentage? I don't have it very detailed, unfortunately. But ITS is one of our large contributors as is manufacturing. So I mean, those will be our two to talk to. But I don't have the specific numbers. Okay. Okay. Okay. So top two is manufacturing, basically? ITS and manufacturing, yes. Okay. Okay. Okay. Thank you. Thank you. Thank you. Thank you. The next question is from the line of Purab Gujar from Cameo Investments. Please go ahead. Naozer, first of all, heartiest congratulations to you and the entire team on, I think, it's been some journey that we have seen in terms of the work gone in. I think it's really showing up in the numbers. It's heartening to see that. One of my questions is on the CXM front. I wanted to get a sense of what is the capacity utilization that we are looking at, especially in Manila. Can you give a sense of that? No, as I said, we are clearly full up. So we'll have to look at, I mean, it was one of the earlier questions I had answered. We'll have to look at expanding as we get clearer sight of the new business that we signed up. Understood. How is the team on the domestic front? On the domestic front, yes, I mean, we run a couple of sales processes for leading BFSI names. So we continue to see, I mean, a bit of ups and downs depending on, I mean, their ability to pump the sales lead. But again, no significant concern in terms of sales capacity. Again, we run fairly tight ship payrolls. Understood. Understood. On the EXM front, I believe you gave an understanding in terms of adjusting the current revenue growth number due to a particular event. If I've missed that, can you help elaborate? Sorry. Can you please repeat that? I misunderstood. Okay. I'll repeat that. On the EXM front, the revenue is relatively not that buoyant in terms of the growth. I was wondering if it's a reflection of what the market is right now. Can you help understand what the market currently looks like? Because we are the market leaders. Clearly, our revenues might reflect more of what's happening on the market front. Can you give a sense on what the market is looking at? No, as I said, the EXM, I mean, the numbers this year have an element of the business which the last part of the business which we have now exited, the statutory compliance business. So when I add payroll plus statutory compliance, therefore, the growth seems mutated because that business has actually degrown between the two years. So other than that, as I mentioned, the EXM, the payroll business is only about 18% year-on-year. And I mean, that's pretty much it; it's consistent with the market growth. So as I mentioned in another question, I don't see any significant challenges in the demand environment also. Understood. My last question is on the I see in the presentation, we have INR 138 crore with cash and cash equivalents on the balance sheet. I believe that is before dividends. After dividends, this comes to around INR 80 crore, as mentioned at the end of the presentation? It will be close to INR 110 crore kind of the range for us. After dividends? Yes. Understood. Okay. That covers me for now. Thank you. Congratulations again. Thank you. Thank you. The next question is from the line of Pritesh Chheda from Lucky Investment s. Please go ahead. How much of the growth in the last two years is new logos led? Sorry. I didn't get you, Mr. Chheda. How much of the growth in the last two years is new logo-driven? I don't have a number readily available. But typically, on the EXM side, I mean, majority of our numbers, I would say that maybe 90% of our growth on the EXM side would come from new logos because the only way old logos can give us more on EXM is when the underlying headcount increases of our customers. So I mean, we don't see more than a 5% up and down on that. So 95% of all our sales on the EXM side come from new logos. On the CXM side, that number varies from year to year. So in some years, we may have, I mean, a great number on the new sales. In other years, we may have, I mean, existing customers giving us new lines of business, which is equally challenging to manage or get. So that number changes year on year. I mean, I wouldn't want to average it out. But what we do try to do is we try to maximize whatever opportunity we get, whether it's from an existing customer or, of course, we have the sales engine for the new customers. Okay. From the unit economics or let's say, in the last two years, what will be your headcount change from FY 2022 to FY 2024? Yeah. I think that's a good question. The average headcount between FY 2023 and FY 2024 has grown by about 12%. 12%. Between 2022 and 2023? It is 16%. So we have broken the linearity in that sense. So the growth is 16% year-over-year in terms of the average. Sorry. You were saying something. Oh, I missed my question. No, you had a follow-up question. If I interrupted you, sorry for that. The headcount increases 15% in the year gone by, right, FY 2024? Yes. What it will be in 2023, the year before that? I don't have that number ready, unfortunately. Okay. And when you are guiding for a 20% growth even next year, do you have to consider a similar headcount increase? Yeah. We have definitely broken the linearity. That's where your cost efficiencies and your margin improvements come in. So yeah. So I mean, I would assume pretty much number in the same ballpark even for the growth for next year. Yes. Okay. And your incremental gross margins will also be a similar, right? Yes. Incremental gross margins, of course, will again grow as a percentage also. But more importantly, because of the cost savings, the sort of higher increase would be the EBITDA because your cost margin actually comes down because you would have to pay a salary increment, which then gets compensated by your other costs, I mean, all the operational efficiencies in the lines below the gross margin. Okay. My last question is, sir, what specifically are the changes because your growth acceleration, I can see, is from 2023. Otherwise, you are in a certain size of business. So what are the key changes that have been brought in for the growth? And incrementally, also, you're talking about a high growth. So if you could just share your perspective on the changes. Yes. I would put two or three key items. One is, of course, a laser-sharp focus on new sales. As I said, new sales, they also include growth from existing customers. The rigor around it, ensuring that we have a playbook by which we can make that replicable quarter-on-quarter, year-on-year. The second one, of course, is ensuring laser-sharp focus on costs and productivity/efficiency because, as I mentioned, some of that helps us mitigate the year-on-year salary inflation which comes in. The third area we have looked at is the whole customer satisfaction levels. Yeah. So we have reintroduced a very, very different governance model comprising of monthly business reviews, quarterly business reviews, getting customer feedback regularly, which we have seen some results in and then the good increase in the Net Promoter Score here which we have seen. So primarily, I think if you are out there selling more, if you are keeping your cost under control, and if you are having happy customers, that's when you can get the responsibility in the market. That's when you can get incremental business on the CXM side. And last year, an internal thing, of course, last year, we have I mean, that's not directly seen in the numbers yet. So therefore, I wouldn't put the and that's why I'm putting the 0.4 is the fact that we have completed whatever was needed to be done on our tech platform upgrade. And of course, we will see some bit of revenues coming in from that in the future years as well as some bit of cost savings on the payroll platform side. How much of the INR 469 crore business comes from Indian clients? Yeah. Just a minute. So for FY 2024, our overall split between domestic and international growth in the region of about 57%-43%. So 57% from international customers and 43% from domestic customers. Do you mind to share the headcount that you have at the end of FY 2024? For what? Split between international and domestic? No, no, no. The total headcount. The average headcount which we had the March-end headcount was just under 6,000. But the headcount through the year was about 5,500. Okay. Thank you very much. Thanks. Thank you. The next question is from the line of Harsh Kundnani from Aionios Alpha Investments. Please go ahead. Yeah. Hi. Thanks for the follow-up opportunity. Just one small question from my end. Given that our key clients in the EXM business are from the IT space, and that space has been facing headwinds, has that impacted our payslip addition or payslip growth? And if these headwinds do recede in the following year, can that be a growth driver? Just wanted to understand that. No. I mean, I mean, we have not seen any significant reduction in headcount of the current IT/ITS customers we serve. Yeah. And also, it's not ITS. It's more ITES, so consulting kind of a profile which I'm loosely putting it as IT/ITS. So no, we have not seen any headwinds there. So it's pretty much the and as far as new sales are concerned, you know what? We have an overall view in terms of which businesses we want to sell to. But again, there, we have I mean, I have not heard any feedback from the sales team that they're seeing any challenges. No. Understood. Thanks a lot for this. Thank you. Thank you. A reminder to all participants, you may press star one to ask questions. Is there any question? No. Hand the call over to Mr. Kushal Maheshwari for closing comments. Thank you very much to all of you for your active participation. I would like to hand over the hello? That's good, Kushal. Yeah. I would like to hand over the call to Naozer for the closing statement. Thank you. Thank you, Kushal. Thank you, gentlemen and ladies, for spending almost close to an hour anyway coming close to our scheduled completion time. But thank you. Thank you for the time that you gave us today. Hugely satisfying that we have sort of on the back of our best-ever results in FY 2024 across all parameters supported by the investments we have made and the key business drivers over the past couple of years, we believe that we are well poised to capitalize on the market opportunities as they emerge in FY 2025 and beyond and continue to deliver above-market financial and operational performance. With this, we would like to close the call and look forward to interacting with you again sometime in the near future. Thank you so much. Thank you. Thank you very much. The end of call. Thank you. On behalf of IIFL Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you. Thank you. Thank you.