Ladies and gentlemen, good day and welcome to the NIIT Limited Quarter 4 and FY 2025 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions 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. I now hand the conference over to Mr. Vijay Thadani, Vice Chairman and Managing Director, NIIT Limited. Thank you, and over to you, sir. Thank you. Good afternoon. Welcome everyone to this particular briefing session where we are going to talk about the Quarter 4 as well as the full financial year 2024-2025 results. To start with, thank you very much for your continued interest in NIIT Limited, and we enjoy these conversations because your questions make us rethink our strategy as well as refine our communication and strategy going forward. Today's agenda includes an update on Quarter 4 as well as the full year FY 2025 results. We would also like to provide an update on some key strategic developments, including an inorganic initiative which you would have already read about, and some other corporate actions that were discussed in today's board meeting as well. As also the way forward for this business, which we are in indeed very exciting times, but uncertain, a bit more volatile than normal. Nevertheless, they are exciting times with newer technologies coming in and changing the landscape, the way we work, the way we live. We are looking forward to continuing to play a very important role in this new environment. I would just give a small context to the last quarter that we went through, and then we'll jump straight into results. We had a very uncertain and volatile macroeconomic environment. I think most of you are actually experiencing it, so I do not have to even amplify that. Despite that, I think we've delivered a fairly resilient performance from swift and deliberate actions that were taken last year that have enabled us to return to growth. In the year prior to that, we had declined in revenues. Despite continuing headwinds and uncertainty that we had from time to time during the year, I think we were able to deliver a certain amount of growth. We would have liked it to be better, and I think we'll discuss that. We would have liked it to be better. We had planned for it to be better. We were nearly equipped to deliver to that. However, there have been reasons, and we will discuss that as we go forward. While we were battling this uncertainty, there were three initiatives which I thought I should talk to you about. One, in this process, with our new leadership team that came in under the leadership of Pankaj Jathar, who took over as CEO, I think we have been able to broaden our customer base fairly significantly. We have deepened our penetration in GSI, GCCs, and private sector banks, and now even expanding ourselves to the rest of the banking sector and financial services sector. We have expanded our portfolio of offerings fairly substantially, whether it is GenAI, cybersecurity, data engineering, analytics, whether it is for enterprises or it is for consumers. We continue to invest in creating newer and newer offerings, whether it is to train enterprise architects or digital architects. Lately, I think with the new education policies focused on providing an integration between higher education and the industry and skilling part, we were very keen to get involved in that part. Some steps that we have taken have resulted in an inorganic opportunity which got materialized in the month of April, but we'll nevertheless talk about it today, which is NIIT acquiring iamneo, an AI-powered SaaS platform which is focused on deep industry-relevant skilling. We'll be talking about all this in the background. I had introduced Pankaj to you a few quarters ago. In one quarter, he lost his voice because of a sore throat. In the second one, he had found his voice back, and this time I think he has a stronger voice than before. This is also his first time when he will be presenting the annual results of NIIT Limited. It's a very exciting milestone for us. With that, I hand you over to Pankaj. Thank you, Vijay. Good afternoon to all of you. Thank you for joining the call. I'm happy to be presenting NIIT's results on this call. I'll walk you through the financial performance for Q4 and the full year, and also share some insights into the road ahead. Starting with the Q4 financials, as previously communicated, Q4 is typically a seasonally weak quarter, particularly for BFSI due to fiscal year-end slowdown. A year-on-year view is more reflective of our trajectory. Revenue for Q4 was INR 863 million, up 16% year-on-year and down 12% quarter- on- quarter. This is the fifth successive quarter of double-digit year-on-year growth, despite the volatile and uncertain environment that we have faced. Having said that, of course, we expected to see better growth for the quarter, but we were impacted by increased volatility and the growing uncertainty in the environment. I'll briefly talk about the product mix that we've seen. Revenue from technology programs is up 20% year-on-year. Revenue from BFSI and other programs is up 8% year-on-year. Under technology is to BFSI, the ratio technology to BFSI and others, the mix is at 67:33, whereas last year it was 64:36, and last quarter 65:35. The broad basing that Vijay talked about, so the broad-based year-on-year growth led by technology and reinforced by continuing growth in BFSI and other programs in what is traditionally a seasonally soft quarter. Technology spends improving, BFSI training spends softened due to regulatory development. These are some of the reasons why we saw the kind of numbers that we saw in Q4. Now, in terms of learner mix, the early careers program was up 40% year-on-year, and work pro programs were down -6% year-on-year. The mix between early career and work pro is now at 57:43 versus 48:52 year-on-year, reflecting improved hiring sentiment in the technology space. Decline in the work pro programs reflects the impact of environment on training spends for that particular segment. EBITDA was at INR 4 million, consistent with our guidance due to the investments in this quarter. Depreciation was INR 59 million as compared to INR 61 million last quarter due to rationalization of lease promises. Net other income for the quarter was INR 221 million, which is predominantly contributed by treasury income, income on leased assets, adjustment in payout obligations of acquisitions, etc. Tax was INR 28 million, with an effective tax rate of 17%. Minority interest was INR 6 million. Loss from discontinued operations at INR 1 million. Profit after tax was INR 131 million versus the same INR 112 million for last year. Profit after tax is up 18% year-on-year. Earnings per share was INR 1 per share in Q4 and INR 1 versus INR 1 in Q3 and INR 0.80 or 80 paise per share last year. Now, for the full year FY 2025 results, revenue was at INR 3,576 million, up 18% year-on-year. This is a significant turnaround in performance as compared to the 11% decline in FY 2024. In terms of product mix, all-round growth in both technology and BFSI and other programs, with technology starting to gain momentum starting mid-year, and BFSI programs saw some moderation due to regulatory actions towards the end of the year. Technology programs were up 12% year-on-year. BFSI and other programs were up 32% year-on-year. In terms of mix, technology is to the BFSI and others mix was at 66:34% versus 69:31% last year. The learner mix, the growth in revenue for both early career as well as work pro learners is what we saw. Revenue from early career programs was up 23% year-on-year, and revenue from work pro programs was up 13% year-on-year. Early career is to work pro mix was at 52:48 versus a 50:50 mix last year. We're starting to see some cautious pickup in hiring, although the environment continues to remain volatile. EBITDA was at INR 115 million as compared to INR 48 million last year. The business continues to be in investment mode, and we are ramping up our growth initiatives. Depreciation for the year was INR 232 million as compared to INR 184 million last quarter. Net other income was INR 707 million versus INR 594 million last quarter. This resulted in a full PAT of INR 461 million versus PAT of INR 384 million last year. PAT is up 20% year-on-year, and earnings per share for the full year, 3.4 per share versus 2.9 last year. I will run through some of the balance sheet metrics. The balance sheet metrics remain strong. BSO was slightly higher at 51 days compared to 46 days last year and 68 days last quarter, down quarter- on- quarter due to seasonality. Consistent with the investment cycle, the company is in CapEx for the quarter was INR 83 million in platform, software licenses, etc. Cash and cash equivalents at the end of the quarter at INR 7,580 million versus INR 7,395 million in Q3 FY 2025 and INR 7,185 million last year. Employee headcount was at 722 at the end of the year, up two numbers quarter- on- quarter, down by about 31 year-on-year. While continuing to invest in growth, the company has been focused on adapting its expense structure to convert fixed expenses to variable costs. Commentary on the business, the broad basing of our go-to market that the company deployed over the last year resulted in consistent recovery in the business. This is the fifth successive quarter of double-digit year-on-year growth. As you know, business was impacted last year due to a virtual freeze in hiring by large IT services firms. Following the events of the last two to three weeks that led to some deference and cancellation, we are seeing an improving trend in consumption over the past year. We feel that this trend has legs and will continue once we get past the current uncertainty. Swift actions that your company took to broad base the go-to market. For technology programs, we expanded coverage in GCCs and Tier 2 GSIs. Increased focus on upskilling, reskilling with a number of advanced programs such as enterprise architect, cybersecurity, AI/ML, and GenAI, digital architects, and engineering managers. For BFSI and other programs, deeper penetration in the banking sector where we work with the top four private banks for training both early career and working professionals. Adding new logos across the board, broad-based offerings for India Enterprises. Building GenAI-based portfolio and adopting an AI-first approach across the entire organization. These actions resulted in a suitable and profitable growth platform for the company. Your company continues to build on these actions. Some of the macro trends and strategic positionings, we are witnessing transformative shifts in technology, education, workforce dynamics led by AI and multiple industry transformations at play. EV, ER&D, biopharma, digital banking, these are some of the areas that are making these changes. NIIT is strongly positioned to lead in this environment of continuous skilling and upskilling demand. We now serve learners across universities, preparing students for college to corporate transition, industry, onboarding, upskilling, and reskilling for career progression, consumer GTM, employability enhancement. Some of the tailwinds that we are seeing, GenAI-driven innovation reshaping industry, government focus on employability and Viksit Bharat vision, a lower GER, and about 10.7 million annual graduates, only 51% of whom are employable, according to an economic survey from 2024. Over 11 million professionals in IT and BFSI require significant upskilling and reskilling. The need for a large number of skilled professionals in ER&D, EV, new age manufacturing, etc. NEP-led transformation of higher education. Now coming to our guidance, current situation as observed still has a lot of volatility and uncertainty. We had planned for a strong growth for Q1, and we are seeing a little bit of an impact this quarter given the environment. However, year-on-year growth is expected to be better than Q4 growth. We expect the growth to improve from Q2 given that the local environment seems to be resolving itself. For the full year, we expect growth to be over 25% in FY 2026. We would need to revisit this every quarter given the volatility and uncertainty in the environment. Over the medium to long term, we continue to see a large opportunity ahead of us and remain committed to our stated long-term goals. I need to reiterate, NIIT has a strong and trusted brand, differentiated deep skilling methodology delivered at a scale and using AI to power the delivery. 200+ active corporate partnerships customers with revenue greater than 90% from repeat customers. More than 30 OEM partnerships that give us early access to cutting-edge technology. A strong balance sheet to continue investments in innovation and growth. A significant business transformation cycle ahead, which would create demand for specialized talent. We are well poised for growth. The focused entity enables us to be nimble and agile as we address this market. We continue to look for opportunities for both organic and inorganic growth. We completed one in April of a young, fast-growing, profitable, and innovative company. I invite Vijay to provide us an update about this. Thanks, Pankaj. During this quarter, which is on 17th of April to be precise, NIIT acquired 70% stake in a company called iamneo EdTech Private Limited, a leading provider of deep skilling technology training solutions through a scalable AI-powered SaaS platform. The induction of AI-powered scalable SaaS platforms, especially for deep skilling solutions, is extremely relevant to NIIT's go-forward strategy. This transaction was approved by NIIT's Board of Directors at its meeting on April 17th, as I mentioned. Under this agreement, NIIT will acquire the remaining 30% shareholding in phases from iamn eo's promoters, subject to the achievement of agreed financial milestones. Iamn eo will function as a subsidiary of NIIT Limited, with iamn eo's founding leadership continuing in their existing roles, ensuring seamless continuity of operations. This strategic acquisition unlocks substantial growth opportunities, enabling NIIT and iamn eo to deliver robust outcome-driven learning solutions at scale for undergraduates and early career professionals. This will be done through universities, where iamn eo has a strong and large footprint through industry-relevant technology programs, including automated technology labs, assessments, student placement preparation, and placement process management services. Iamneo also works with corporates through platform-led immersive talent onboarding and employee upskilling programs, IT skills assessment, and campus recruitment management. We are very excited about this investment and warmly welcome iamneo's founders and their talented team to the anarchy family. Iamneo's innovative solutions significantly enhance our capability to deliver impactful digital transformation curricula at scale. This acquisition will provide us access to more than 6,000+ private engineering colleges, a significantly underserved market, as also it will add many other universities and colleges as a new channel, which is very relevant in today's environment given the focus of integrating higher education with skills development as well as needs of the industry. This initial transaction value was INR 613 million, which included INR 100 million primary infusion, up to INR 513 million secondary purchase, subject to closing adjustments and draw-up. Totally INR 613 million invested at this point of time, and balance 30% stake will be acquired over FY 2026 to FY 2030, subject to defined milestones. I must point out that the transaction is expected to be growth, margin, and EPS accretive from the very first year it's had. The second update I wanted to give was a corporate action which has been taken during the quarter, where NIIT has agreed to buy the stake of ICICI Bank Limited in the joint venture called NIIT Institute of Finance, Banking, and Insurance, which had been running for a while. This transaction was also announced during the quarter, and this is subject to completion of various other formalities while the agreement has been in place, but the closing is yet to happen. The third thing which I wanted to talk about was on the dividend. Today in the board meeting, the board also looked at the performance of the organization, the results that the company has, as well as the outlook that is available in the future, along with the investments that are proposed to be made. Consistent with the dividend policy that the company has followed of giving a consistent dividend across the years, the board recommended a dividend of INR 1 per share for FY 2025. This is obviously subject to approval by the shareholders at the shareholder meet and then dispersed accordingly. I will stop at this point of time and open the floor for Q&A. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star, then one on your touchstone phone. If you wish to remove yourself from the question queue, you may press star, then 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. Again, to register for a question, please press star, then one. Our first question comes from Ganesh Shetty, an individual investor. Please go ahead. Good evening, sir. My first question is regarding our new offering, gNIIT, and I want to know how it is being received by the student community in this difficult period of IT. You said it's your first question. You can tell us the others also. We can then respond to them in one shot. Okay. My second question is regarding our investment in inorganic as well as organic initiatives. So will the investment be reduced for the coming period so that we can have a significant improvement in EBITDA margins? Your take on this, sir. And my third question is regarding our strategy for our AI skills and AI agent and whether we can use these skills for any other upskilling initiatives other than technology and BFSI. Thank you, sir. These are my three questions. Yeah. Pankaj will address these questions. Yeah. First question on the gNIIT program. I think so far we've seen a good reception from the customer base on gNIIT, and we are now in the part of the year where we expect more audience to be receptive to this offering as audiences are just transitioning from an exam time to the starting of the course time, right? We are working on, I mean, our marketing campaigns are on right now, and the strategy is to push gNIIT as much as we can. We will come back in Q1 or with the results of Q1 to tell you more about how successfully we've managed to place the product offering of gNIIT with the market. Your second question was on investment. I will answer this, and Vijay, you can or Sanjeev, you can add to it. We will continue to be in an investment cycle, Ganesh. We are still building this business. We have set forth an ambition of doing this into a large business. For at least the next few quarters, we will continue to remain in an investment cycle as we build out our product offerings and our marketing, right? I see us continuing to be in an investment cycle for a few more quarters. Vijay, if you want to add anything to that. Yeah. I think what he's referring to is organic. I will add the inorganic flavor. I think one of your questions was whether the inorganic investment that we made in recent times, will that be accretive? Yes, it is growth, margin, as well as EPS accretive. It will add to our profit. It will add to our growth percentage, as well as it will add to the bottom line that we finally deliver to shareholders significantly. I think we have a very exciting time ahead as we integrate that organization's offerings into our own, and as the iameo team integrates the offerings which NIIT has and offers to their customer base. We will be continuing to be on the lookout and add more companies selectively in our portfolio. As you know, our approach to inorganic is that either we should build a new capability or a new segment as well, or a new offering. In this case, all three are checked out, and to that extent, I think this acquisition will contribute a great deal for our future, and I think it will be a mutually beneficial situation to both the organizations and to the larger organization. Going forward, we will look for similar opportunities. It does take time, but as we are moving forward, I think we'll have more such opportunities available to us. Your third question was on AI skills and AI agents and how are we taking advantage of those. Again, I'll ask Pankaj to comment on this. Thanks, Vijay. And thanks, Ganesh. That's an interesting question. You specifically said whether we can take it as a strategy beyond technology and BFSI customers. You're right. Right now, we are taking our AI skills offering and agentic AI offerings to technology and BFSI companies, but there is also a very large opportunity that we see with the India Enterprise customer base, right? Currently, we have a large funnel of AI skill kind of opportunities with the India Enterprise customer base that we are working on, and we have some very interesting solutions that we are creating with them, not only training people, but also trying to create tools and agents that companies can use for their own productivity gains. Definitely, as a strategy, we are approaching the market with our skills offerings and agentic AI offerings, and we see receptivity for our offerings from all the segments that we work with: technology, BFSI, and India Enterprise. Thank you very much for the detailed response, and all the best for the future. Thank you very much. Thank you, Ganesh. Thank you. A reminder to all the participants, if you wish to register for a question, please press star, then one on your touchstone phone. Our next question comes from Ankit Dharamshi from RNM Capital Trust. Please go ahead. I'm audible. Hello? You're sounding a bit distant. Yes. Is it different now? Yes, sir. If you're using a speakerphone or a headset, may we request you use the handset mode, please? Yeah. Give me a second. Go ahead, Ankit. We can hear you. Yeah. Yeah. So thanks for the opportunity. My question was just a follow-up question. This gNIIT program, I think this was an old program which was there a decade earlier. Just wanted to understand how is this different this time, and what is the duration and fee of this program? I think a decade back when this program was launched, it was kind of a parallel program offered to an engineering. I mean, people who are not able to enroll for engineering kind of used to do gNIIT. Is it on the same lines? If you can give some more color on that. Sure. Thanks, Ankit. And by any chance, are you a gNIIT graduate? I knew one friend who was a gNIIT graduate. Okay. Okay. So you're right. It used to be what we call a dual qualification, right? So where you did this program in parallel to your primary degree or qualification, and it was one of the most successful programs of its nature in the country. When we relaunched it, the basic principle remains the same. It is still a dual qualification kind of a program where you use it to augment your primary degree or primary educational qualification that you're doing. In this case, it could be an engineering degree that you're doing, and you could still do gNIIT because this connects you to the industry and the real world where you gain skills that will make you directly employable in the real-world job market, right? The structure is we've changed a lot in how we've structured it. This is now a very flexible stack-based program. There are multiple stacks, and you build it based on how you want to approach your skilling, right? This is a very skill-backward program that we've created where you decide what are the skills you want to acquire, and then you build up the stacks based on the skills that you want to acquire in parallel to your primary education. The duration, again, depends on how quickly someone is able to go through those different skill programs that we've put together, how quickly you can go through the stacks and build them up in your portfolio, right? You could do this program in 18 months. You could do it in three years, depending on your approach. It also involves industry practice. The original gNIIT program had one semester of industry practice, and we've replicated something similar with the relaunch as well. In many ways, it is similar in the theory, the concept of it. The actual practical is updated to the current world's requirements and creates a lot of flexibility in how you enter the program, how you exit, and how you structure the components of the program to build it as per your requirements. Okay. I think the only other dimension I will add is compared to the earlier gNIIT program, which itself provided enormous flexibility to the student. In this case, that flexibility is of one order of magnitude more. You can actually decide to change the skill mix that you will graduate with as on the go. You could have had prior qualifications, prior skills, and you can get credit for that. Number three, you could take up internships and work in the middle of the program in case your time permits as well as your, so there are a number of flexibilities which are offered, very designed to the Gen Alpha's needs and very aligned with the way Gen Alpha thinks, Gen Alpha learns, Gen Alpha behaves. The name gNIIT remains the same to talk about the solidity, the industry endorsement, as well as a methodology which is very, very, very learner-centric. I think in content, it will be very different. The methodology will also be very different. It will be very, very strong, hands-on-driven, project-driven learning. I am saying will. I should be saying is because it's a program which is already running as we speak. I hope that answers the question. If you would like to know more or you would like us to come and talk to a bunch of youngsters, we are always willing to come and talk. Thanks. Thanks for the details. Just one follow-up question. Do we also have any collaboration with any companies for these bespoke programs using gNIIT program? I hope My time. I think his question was, do you have any collaboration or partnership with companies for a bespoke gNIIT program for? Yes, that's on the cards, but not as of now because at this time, the entrants into the gNIIT program are entering at the first semester level. Of course, you can have advanced standing in case you are in the second, third, or fourth year, but all those will follow. Obviously, it is in strong partnership with industry and very, very aligned to industry needs. So what you just mentioned are things which will happen as we go forward. Okay. Good. Thanks. Thanks very much. Thank you. A reminder to all the participants, if you wish to register for a question, please press star, then one. Our next question comes from the line of Kunal Tokas from FVC. Please go ahead. Hello. Am I audible? Yes. Please go ahead. Okay. So just two questions. First is that despite great confidence in the future of NIIT and very displaced and a very good brand and many consecutive quarters of growth, it doesn't show up in, I mean, shows up in the top line, but not in the profitability if you remove the interest income. And you say it has been in an investment mode, but still, I want to understand more what the bottleneck is here. Is it pricing, or is it inflated expenses, or is it a scale issue where you also mentioned you're trying to variabilize more costs? If you can help me understand that a little better. My second question was on iamneo acquisition. You said you got 70% and will get 30% in phases till 2030. The promoters also retain some stake right now, but eventually, will they be given equity in NIIT? Is this the structure that you will follow for any future M&A where the founders stay on and maybe eventually get equity in NIIT? Thank you. Let me answer the second question first, and then I can give a shot to the first one also. Yeah. I can answer that. First, the iamneo acquisition. By the way, your question was, is this a construct that we will be using in future? In most of our acquisition philosophy, it has been that there is a young entrepreneur or an entrepreneur or founder who has brought up the company thus far in either struggling to get capital or wanting to attach themselves to a larger engine or has a dream which is much larger than what the current state of the organization is. If we can provide that, then provide them the avenue, then it creates a win-win opportunity. To that extent, this construct of a fixed upfront and an earn-out-based or a phased buyout phase structure has worked out very well for us. Actually, we have enhanced various constructs have done. I think somebody on the phone has some construction activity happening in the background. If you can put yourself on the line. I think that's me. Sorry. Oh, okay. No, no. No problem. In this particular case, the construct is so that we have the original founders with us over the next five years, and then they become fully integrated into the organization. Obviously, their growth and their future depends on, A, what they would like to do and what we would like to do. The organization, iamneo, would have become fully integrated within the NIIT system, and hopefully, we will be able to have the benefit of having them with us as well as grow the company together to a much, much larger entity. I think in this particular case, they bring some phenomenal technology expertise as well as they understand learning, which is very, very important. The third is, I think, both from their background, their age, as well as the work that they have done, the innovative spirit gets a major push within the overall NIIT structure as well. I think we look forward to some very exciting times together. I answered your second part. This construct has worked well for us, and we do use this construct as we go forward. At the same time, we are not wedded to this construct. It depends on each situation, and each situation has to be dealt with in its own particular way. I think I answered your second part. On the first part, you talked about the fact that we are in an investment phase. To that extent, our profitability is depressed. What I would like to say is that there are portions of the organization which are already operating to between 11%-15% margin. I would say 4/6 businesses or 4/6 offerings that we have are in 15% or thereabouts operating margin. To that extent, stable. There are others which are in an investment phase. Obviously, iamneo, that we added, that is in a very solid state. I think that is how it is an accretive acquisition. I think as soon as the investment cycle starts paying its results, we would be able to see the benefit of the steady-state EBITDA margin that we look forward to in this business, which is 15%-20%. Your question was, where is this money going, the investment that we are going? It's going in marketing, and Pankaj will talk about that in building the customer acquisition capability. It is building a very robust structure which can deliver education at scale. Remember, NIIT stands as a very strong brand which depicts enormous trust. To that extent, when we scale to deliver the same quality of education that we were able to deliver at smaller volumes is an extreme key. That is a disproportionate investment required to maintain that quality level through processes as well as other policies and things that you implement. To that extent, that is an investment, but that will pay off when we start achieving that scale. The third, obviously, is you need a large team. Whether you have one passenger or you have 300, the plane and the crew, it remains more or less the same. That used to be the case in an education center. In the new format that we have, we have much more flexibility, but nevertheless, there is a fixed cost structure which remains, which we will try to variabilize as we go forward. That was a long answer, but maybe Pankaj will add some dimensions to it. I think you've covered almost everything, Vijay. I mean, one of the areas that we will continue to invest in is also product development, right? Just a few minutes ago, we talked in detail about the gNIIT offering. That is an outcome of investment in product development, right? We will keep investing in things like that. Like Vijay mentioned, people will be part of the effort of growing the business, and we are continuing to. Operator? Are we still connected? Hello? Yes. Hi. Sorry, I lost you for a few seconds at the end. I'm sorry. Okay. Is it something that we didn't say anything in the last few seconds? We were looking for you. Did you say anything after when Mr. Pankaj took over? He was talking about investing in product development. That's when I lost you. Yeah. That's us. Yeah. But you can repeat what you just said, Pankaj. He talked about product development. Product development and marketing. That was it. Kunal, we didn't talk after that. If you heard that, fine. Otherwise, I can repeat if you want. I heard that. Thank you. Can I ask a follow-up question? Sure. Yeah. Go ahead. Okay. So first, about your acquisition philosophy. To what extent do you take command of the operations of the enterprise that you acquire, and to what extent do you let the founders run it as they have always been running it, and you sort of are there when they need the capital or any support? That is the first question. You also talked about having a large sort of upfront investments that will eventually allow you to scale up well. Do you capitalize these costs, and do you capitalize any of these costs, or do all of these flow through the P&L? Yeah, that only. I think you are talking about to what extent do we allow the founders to run their companies. We would like the founders to run their companies, but give them the governance oversight that they would need to deliver it at scale. Once they become a part of the public company, then they have certain fiduciary responsibilities as well. Therefore, to bring that discipline. Third, we bring the mentorship. The conference is now being recorded. Hello. I'm sorry, Operator. Can you hear us? Yes, sir. We can hear you. Sorry for that, sir. Please go ahead. What's going on? No, there was a lady's voice in between. We heard some echo. If it is clear, we can continue. It is clear, sir. Please go ahead. O kay. Yes, as I said, the founders have the freedom to run the organization based on their own ambition and aspiration, but within the guardrails of running a public company, being part of a public company, within the guardrails of the SPA that they have, where we have defined the businesses that we will be in and the strategy that we'll follow. It runs like a board-run outfit otherwise, with founders having other degrees of freedom. Also, I must say there are two other constants. One is the brand, and the second is the value systems. These two mean a lot to us, and I think those we insist on. Business flexibility is typically available to the founders. Did that answer your question, Kunal? Yeah. It does. If you can address the second question as well about capitalizing the cost for. Yeah. Yeah. Yeah. Yeah. When we use the word investment, it falls into categories. One which go through the P&L and one which do get capitalized. Anything which is permitted, which is of whose benefits will come over a longer term and are permitted within the accounting standards, and we also believe that they indeed are of that quality, we do capitalize. For example, we create new content. That means a new program. In that case, we would capitalize because typically the benefits of that program will flow through over a three-year-odd period. To that extent, that initial investment gets amortized over the three-year period, and we follow the standard depreciation policy. That is the capitalization, and it is also shown in the part of our capital expense. There are others which are of expense nature, and those get expensed out. Those could be marketing. Those could be people deployment. Those could be implementing a certain process or implementing a new mechanism. I mean, I'm just trying to imagine. Typically, to do with customer acquisition and typically to do with customer service, all those issues are taken through the P&L stream. All right. Thank you very much. That answers my question. Thanks. Have a good day. Thank you very much. I'm sorry, the system is not working exactly the way it normally does. In case you have any follow-up questions, we'll be happy to take them on a one-on-one basis or whichever way you want. All right. Operator, we can switch to the next question. Thank you. Our next question comes from the line of Rahul Jain from Dolat Capital. Please go ahead. Yeah. I hope my line is fine, and I have a few questions. Firstly, on the transactions that you did, and my first set of questions are related to that. First of all, if you could total consideration, we might shell out even if all earn-out objective decision one. Second thing is that how the business will handle our ownership, anything on the current as well as sustainable growth for this business, if you could give color on that part. Our application also expects they have a corporate part of the business. Is it B2B? If yes, how is it different than RPS because it also deals around GSI and GCC? Inputs on this would be helpful. Thank you. Okay. First of all, we paid INR 613 million for 70% of the company, of which INR 100 million were a primary investment into the company, and INR 513 million was the secondary investment, which itself is in two parts, one upfront and one which will happen at closing or with adjustment. That all will happen as we speak. The balance part, which is the balance 30%, which will be acquired over five years, is subject to certain performance milestones. If all those milestones are met, the overall consideration that we may end up paying will be INR 160 crore, which is the maximum that we take into account, which is with all the earn-out accelerators and all those things put in. If we end up paying INR 160 crores, then that company will be at that point of time. Kapil, what would be the revenue of the company? We don't give a forward guidance right now, but there is significant growth ahead. That will mean something like a 10x performance today in five years from now or something similar to that. We can share that number with you, but it's a very substantial number. The second question was their own growth. So the CAGR growth that they are looking at, I'm saying we are looking at as iamneo, is 30%+. And at this point of time, I think we are very well equipped to handle that. It's consistent with the growth that NIIT looks forward to. To that extent, it's very heartening to see that. There are accelerators as synergy kicks in. I think those further synergies kick in. I think those are all good. I think I've answered all three of your questions. If you have any more, just. You said. Yeah. So. How different is it from? Oh, yeah. Okay. Most of their businesses, what I would say, goes to what we call the consumer part. Why? Because we are dealing with the student in a university. The part which they do address corporates will perhaps remain in the enterprise part. At this point of time, I would say it is about 60/40. 60% is towards universities, 40% towards corporates. I think the university part is growing faster and also has a higher scalability opportunity. How is the enterprise part different from RPS? Yeah. T he enterprise part is very different from what RPS does. It is very different from what StackRoute does. It is complementary. Just clarification, one or two clarifications to your inputs. I heard is 160, 160 on a full payout basis is what you said. Second thing you said is that 30% CAGR, which is also in line with NIIT's growth. You're saying NIIT's organic growth being at 30% year is what you said for the organic. Now you are putting words in my mouth. I am talking about the second part first. I'm saying NIIT, from the time travel that we've been talking, we've always been talking of 30%+ growth, isn't it? Over the years. I think that is the context in which I was saying. I'm not right now giving a guidance of a 30% growth year- on- year for next five years. I'm giving you that it's a high-growth company like the way NIIT is designed to be at this point of time. It is only in that context that I was talking. NIIT will, in the short term, NIIT will grow faster than that. Essentially, just to reassure, you're saying this business, the new acquired business, it has potential to compound at 30%. For NIIT, again, business, you're not seeing any numbers for at this point. This is the last sentence. We're not giving guidance for NIIT at this point of time. We are not giving a guidance for five years for NIIT. I'm just explaining you that their CAGR over the next five-year period, because that's to be documented, if this arrangement has to be worked out, is 30%+. Any qualitative color you would like to give for the organic business for this year, if not numerical? Okay. Qualitative color, Pankaj, please give. The qualitative color is green. It continues to be a time of uncertainty, right? The things that transpired in the last two weeks and that are continuing add to the uncertainty in the environment, the volatility that we have to deal with. Events like this cause sudden cancellations of confirmed delivery, right? That then impacts our numbers directly, right? We are going to be in this kind of an environment. While the local things seem to have settled, the global uncertainty continues. It is the environment we are in. We have to have the agility to deal with it. We have shown some of that over the last couple of years where the company has turned around or pivoted some of its offerings to take advantage of new opportunities and cut costs in opportunities which did not exist anymore. We will continue to do that. We'll continue to evolve our offerings and remain agile with changing market conditions and keep evolving, keep changing to grow. We have made commitments of growth, and we will pursue those irrespective of the headwinds that we encounter in the market. Okay. That's very helpful. Just one clarification on the enrollment data. Just to understand, is it unique enrollment added during the quarter that we publish, or is it the total number of billed enrollments per quarter? I think it is total number of billed enrollments in the quarter. Most of them would be unique because the repetitions are low. I'm sorry. Are lower in these kind of programs that we do. Having said that, I would just want to add a little bit. You wanted a qualitative color. I just wanted to give one or two dimensions. I think over the last one year, we have been able to, one and a half years, we've been able to broadcast our offerings quite a bit. Now, add to those offerings the additional flavor of, let's say, an AI-powered platform. It significantly improves the value that we can deliver. I think that will benefit us both in market share as well as the realizations that we get in anything and everything we do. Similarly, I think iamneo will benefit a lot from the offerings that we have, which are very distinct. As I mentioned, there is hardly any commonality. I think to that extent, those benefits of synergy, which are additional to what we have already foreseen, are things which you can think of giving some additional benefit in times to come. The broad basing that we did with our customer segment of going from GSI Tier 1 to GSI Tier 2s, now threes, as well as broad basing our banks rather than staying with the top four banks, now moving on to other banks and wherever possible, even NBFCs and PSUs. I think that will also provide additional benefit. There is the whole area of generative AI because generative AI by itself is changing the nature of just about every job that exists. There is a huge amount of reskilling and upskilling which is happening in organizations other than GSIs and GCCs. I think we stand back. I think we stand to benefit from that as well, given the coverage that we have. Some of these elements and a stronger salesforce that we have invested in, Pankaj has made specific efforts to improve the sales and marketing capability of the organization. I think we should start seeing the benefits of that. That is why I am making the statement that despite the hard times that may happen, I think some of the things which we have with us, which we have capabilities that we are building, should help us in overcoming some of the swings which happen in the environment from time to time. I think that is the context we are talking in. Remember, all this is in a degree of uncertainty which may rise higher than whatever else we are doing, which is what you saw in the last two weeks, the events which happened. Nobody could have imagined that it would be the kind of event. Nobody could have imagined the way they have recovered themselves also. I think all this will remain a part of the game. Sure. Sure. Thank you. That's it from my side. Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. Great. Thank you very much. Once again, we really appreciate your being part of this meeting. This is the results season. At this time, for you to have spent this one hour plus with us, we truly appreciate your questions. As usual, you give us lots to think about and do contribute to our thinking as well as the next actions that we take. I would say the same for these 65-70 minutes that we spent together. If there are any further questions, Kapil Saurabh and Saurabh Taneja, both will be available for any further questions. Pankaj and myself and Sanjeev Bansal, the CFO, are also available. We look forward to also meeting you in person in case there is an opportunity in the near future. I believe there are some conferences in the future as well as some one-on-one meetings planned. We look forward to interacting with you. Meanwhile, if you know of anybody who wants to do gNIIT, please do ask them to benefit from NIIT's reemergence with its gNIIT offering. Thank you. Thank you. On behalf of NIIT Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.