Ladies and gentlemen, good day, and welcome to Tanla Platforms Limited Q2 and H1 FY '23 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 and then zero on your touchtone telephone. Please note that this conference is being recorded. I now hand the conference over to Ms. Ritu Mehta, investor relations at Tanla Platforms Limited. Thank you, and over to you. Hello, everyone. I'm Ritu Mehta, and I lead investor relations for Tanla Platforms. On behalf of everyone at Tanla, I would like to welcome all of you to our Q2 earnings call. With us today are Uday Reddy, our Founder, Chairman, and CEO, Deepak Goyal, Executive Director and Chief Business Officer, and Mr. Arvind, our CFO. Uday Reddy will share his perspectives of business and strategic progress made by Tanla. After his opening remarks, we will be happy to engage with participants and address the questions. Before I hand it over to Uday, let me draw your attention to the fact that today's discussion may feature statements that are forward-looking in nature. All statements other than statements of historical fact could be deemed forward-looking in nature. Such statements are inherently subject to risk and uncertainties, some of which cannot be predicted or quantified. A detailed disclosure in this regard is mentioned in the results presentation that is uploaded on our website. Now I hand it over to Uday. Thank you, Ritu. Good evening, everyone. Welcome to our Q2 FY '23 earnings. Let me share my thoughts before we go to Q&A. First, I would like to cover innovation. We have been investing our time and energies in Wisely platform, which is our platform of platforms for digital interactions. It has made tremendous progress. I'm pretty excited to share a lot of evidences of Wisely's success, and we'll share this consistently going forward. I have talked about my passion of building a platform company. Any platform company will have to demonstrate a few key metrics. A, it should have high margins. B, it should have tremendous customer stickiness. C is it should be able to scale, and D is it should be able to offer predictability of business. The E is it should be very, very asset light. I'm meaning to say that, like we don't have to really invest tons of money on these platforms. So I'm happy to see Wisely check the box on each and every one of these metrics. Let me drill down on each Wisely platform now. On Wisely Communicate platform, three of the top banks are on this platform and delivering critical communication to their users. For one of the banks, 30% of their critical UPI messages are through this Wisely with end-to-end encryption on the blockchain. We have scaled up to this level in less than two months. On Wisely OTT platform, 700 million-plus transactions were delivered in Q2 for our 40 customers, including top banks and e-commerce companies. We have a huge opportunity for Wisely to scale up. Our sales funnel is looking solid for this platform. On Wisely Network platform, just to give you a sense of scale, we have processed more than 35 billion transactions through our AI and ML engines in Q2. We are on the track to reach INR 100 crores gross margin run rate per annum. Big thrust is now to accelerate to go to market on Wisely platforms. We have the many platforms now. We have many customers with us. Now it is the time for us to scale the business. I would like to thank my team and our partners and our customers who played a very important role in this journey. We're just getting started, and we'll keep innovating and improving relentlessly. In terms of enterprise business, we are seeing improvement. Our big focus here is to accelerate our new customer acquisitions and gain wallet share in existing customers. Deepak will give more details on this business in his speech. Let me now cover capital allocation and ESG. Our capital allocation has always been very disciplined. During the quarter, we have announced our dividend policy of 30% payout of consolidated profit after tax and interim dividend and paid interim dividend of INR 6. We also announced our buyback of INR 170 crores. We are building our business with a lot of focus on ESG. Tanla scored 32 in S&P Global score compared to industry average of 18. We would be in the top 90%+ percentile in industry, and we will continue to improve from here. In summary, we have shown improvement in this quarter, and we will build on this in Q3 and beyond, both in platform and enterprise business. Let me hand it over to Deepak to talk about enterprise business, post which we will take Q&A. Deepak, would you like to take it from here? Deepak? Mr. Gol? Yes. Am I audible? Yes, sir. You are. Yeah. Deepak, yeah, continue. Yes. Thank you, Uday, and good evening, everyone. I'll give you some highlights on our enterprise business, Tanla and Karix Mobile. As you must have seen in the results, we saw an improving trajectory in both revenues and gross margins in the enterprise business in Q2. Revenues grew by 6% and gross margin grew about 11%, compared to Q1. Overall, if you see, we have grown our gross margin grew by about 1% compared to Q1. That is despite we losing about 1% due to currency movement. You know, primarily, euro against USD, where USD got stronger. You know, we had an impact of about 1% due to that. As far as Q3 is concerned, we are entering Q3 with a lot of confidence and stability. We see a lot of opportunities ahead of us, and I expect momentum to pick up in Q3 and beyond. If I talk about the opportunities, I would divide into two. One, with our existing customers. Another, with the potential customers. If you look at our existing customers, as you know, we are industry leaders. We are present at more than 60% of the customers in India where the messaging business is getting originated. Our volume share is around 50%. Overall, we have more than 30% market share in India. All right? The opportunity in front of us is, as Uday said, we need to increase our volume share there by providing you know continuous great services to our customers. Another one big one is by penetrating with more in products into these customers. We are you know we are quite ready with that. I mean, just to give you example, WhatsApp. I mean, WhatsApp is a success story with revenues going up by 4x in last four quarters. We have been winning a lot of business on WhatsApp. In fact, 45% of my new wins have come other than SMS you know and primarily on WhatsApp. On top of it, we have won the largest bank in the country on WhatsApp, and we are hoping for them to go live, you know. In fact, they have gone live with some use cases in this quarter. On top of it, as you know, we have partnered with Kore.ai for conversational capabilities. That is helping us a lot because now we have a world's best conversational platform with us, along with our expertise on WhatsApp and along with our you know, such a great existing customer base. Other than WhatsApp and Kore.ai, definitely there is Truecaller. We have started winning customers on Truecaller as well. You know, you would see that you know the number of messages, the revenue going up on Truecaller as well. When I talk about new business, net new customers. As I said, we are present today at around 60% of the customers where business messaging is getting originated. We are not present at 40%. We are going to go very, very aggressive you know to acquire these customers. We have you know a plan in place, and we are very confident that we would be you know next few quarters, we would be able to increase our market share significantly. Another data point I would say, I would give you that about, compared to our last year, we have moved from 175 to 208 customers who are giving revenue more than INR 1 crore. It shows the kind of deep relationships we have with our customers. In summary, I would say that we have a lot of opportunities ahead. You know, we expect a lot of growth and margin and margins will show improvement in the coming quarters. Thank you. Operator, maybe you can pass it on to Ritu. Thank you very much, sir. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may enter star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Anyone who has a question may enter star and one. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question is from the line of Anil Nahata, an individual investor. Please go ahead. Hi. My question is to Deepak. Deepak, in the presentation, we saw that out of the top 20 customers, in 3 we have lost market share and 3 have completely dropped out. I mean, from the last quarter, we did understand that one of the large banks probably has gone away and all, but this seems to be quite a deep impact beyond what we understood in the first quarter. Would you like to elaborate on that? Yeah. So, Anil Nahata, first of all, we have not lost the bank. Yes, we have lost certain volumes to the competition, so the bank is still with us. You know, some customers dropping out of the top 20 maybe the other customer must have taken their place in that top 20. You know, that the movement keeps happening. No, I would like to persist with that question because if you see the wallet share that came from the top 20 actually has shrunk. If I see the market would have grown 20% year-on-year, that basically means that we have lost close to 20% of our market share. If we are at 40, maybe we are at 32 now. I mean, that is the kind of impression I am getting. I know. I will go. Maybe, Anil, let me kind of give you a perspective on the numbers and on the business Deepak can add, right? If you look at it we've been talking about continuity of customers, but obviously there's always a churn in terms of who remains in top 30 and some of them. The balance customers, even in this case, right, are 14 of them are consistent, three of them have slipped from top 20 to 20 to 30, and the balance three are between 30 and 40, right? We've not called out all of them, but that's really what it means, right? Having said that, absolutely our customers greater than INR 50 crore have shown a decline on a YOY basis because we have lost some share and volumes with some customers, and that is something that Deepak mentioned in terms of how to bring back, right? They have not gone out of the system. You know, they are continuing to be our customer, but obviously at smaller scale than what it was one year back. Okay. My second question is, again on the matter of international forays, how good are plans on the international diversification of taking Wisely and the enterprise business international? Hi, Anil. Uday here. In terms of the expansions, like we're not in a great hurry to expand in the sense like, we have seen tremendous success for Wisely in India. We would like to see a couple of more quarters. Meanwhile, like we are doing a bit of groundwork in other markets. I think by end of this year, we should be in one more country, which probably we should able to say by end of in Q3 or Q4. That's where we are right now. Okay. Thank you. Yeah. Thank you. Our next question is from the line of Tejas Shah from Lazer Securities. Please go ahead. Yeah. What are we looking in terms of the volumes of the festival businesses which are normally predominant. Normally, last time it's in month of October. This time it has started a little earlier. Mr. shah your voice is kind of breaking up, sir. If you can use a handset and speak, and please repeat the question for the benefit of all the participants. Yeah. Yes, can you hear? Yes. Yes, Mr. Shah. Go ahead, Tejas. Yeah. Hi. See, normally last time I think the Diwali and other festivities were in the months of October to December, if I'm not wrong. How much of the business which is preponed this time, and what is the business looking like in terms of the festival business which is normally third quarter is always the best for us. Now, I think some businesses must have preponed in this July to September. How do you work on that right now? If you can shed some light on that. Deepak? Hi there. The question is around how do you see Q3 in terms of festival, you know? Yeah, because I think this time the festival has started much prior. I think all discount sales and everything is much prior. Absolutely. You know, Q3 is always you know, our best quarter. You know, you would see that Q3 we would have much better numbers. Okay. I missed out the starting commentary, so I'll just ask a simple question. How are we trying to increase the bottom line and top line? Because now I think again we are coming in a stage where we are stagnated. Basically, we are not going to grow top line to the levels that we were growing earlier. As I said, we have plans to grow top line, okay? We have plans to improve our margins as well. You know, as I mentioned we are working on penetrating our existing customers with a lot of new solutions, new products which are high margin business. Here I'm talking on related to platform business as well. On the other side we are going on aggressive drive to acquire new customers. You know, there is still a big market in, I mean, India is a big market, and you would see the growth coming in. That will still take 2 quarters? Sorry? That will still take two quarters or? I mean, see, this is a work in progress, okay? I know. Basically when we say roadmap, so what we are trying to understand is, okay, fine. Yes, you have got the vision to what you want to do. Okay, normally the execution, acquisition, normally what is the timeline that we normally look at? Three months, six months, what? See, it's like this. we we have acquired a few good customers, I would say, in last couple of quarters. Okay? Their onboarding is completed. It takes time to onboard the customer, technical integration and stuff like that, you know. It takes its own time. We have done that with a few large customers and they would start kicking in from this quarter itself, as well as we would be acquiring more and more new customers. Yeah. It's an ongoing process, but you will see improvement every quarter. Okay. Thank you. Thank you. Thank you. Our next question is from the line of Jinesh Gandhi from AUM Advisors. Please go ahead. Hi, sir. I didn't hear the initial comments. If you would give us a picture on the margin and how we would scale it up back to our 20%-23% levels? Sure. Let me take that question, Aravind here, Jinesh. Right. If you look at from last quarter to now, our gross margins went up by about 1.1%. Our EBITDA went up by 0.1%, but there was a big impact as far as Forex is concerned, both on gross margin and EBITDA, because a lot of our international business, almost I would say 50% of our international business is billed in euro and the euro depreciated very, very sharply against the USD. In fact, it's two quarters in a row where we've been having this Forex challenge. That has contributed at an EBITDA level of almost 1.5% on a sequential basis, in terms of incremental Forex impact that we've had. Right? If you look at it if forex had remained where it was last quarter, we would have probably been at about 18% EBITDA. Right? That's a little bit of a structural challenge. We're working on changing our billing relationship with our customers to USD. We will minimize this impact maybe in Q3 and Q4, maybe more in Q4 than in Q3. But that's an impact that we have. Right? From an improvement standpoint Deepak talked about how to drive the enterprise business. As we scale that up we will typically bring back the profitability. We're investing big on Wisely. You know, Uday kind of covered multiple platforms within the Wisely platform of platforms to see where we are seeing traction. As those scale up you will again see that reflect positively as far as our margins are concerned. The idea is that we will keep building on our margin trajectory, and that's really how we are looking at profitability, Jinesh. Jinesh, does that answer? Okay. Hello. We'll take our next question from the line of Balaji Subramanian from IIFL. Please go ahead. Sure. Hi. Good afternoon. Thanks for taking my question. Hopefully I am audible. Yeah, you are. We can hear you clearly, Balaji. Go on. Okay, fine. My first question is on the revenue improvement trajectory. We used to do 30, 40% not very long back. You know, this time we have seen it almost becoming flattish. You know, you did mention some of the initiatives that you are taking to ramp up the revenue growth. You know, when should one expect your revenue growth going back to the you know, 18%-20%, which is what typically the industry is growing at? That is number one. Second question would be on you know, one aspect which you know, probably dragged you in the last quarter was your lack of geographical diversification. Any plans in terms of kind of, diversify your revenue mix so that, you are not susceptible to, the pricing, pressure, the, events like, what we saw last time? That is from my side. Yeah. Deepak, do you want to give the color on revenue? Yeah, yeah. Sure. Hi, Balaji. Balaji, as you are aware, we shared the reasons of our revenues going down in Q1. You know, we are working on not only wherever we lost the revenues, we are working to regain those revenues from the same set of customers. We are also going after a new set of customers. We are very hopeful. I mean, that much I can say, as we don't want to give any forward-looking guidance. We are very hopeful to bring back the growth soon. You know, that much I can say. As far as you know the geographical diversity is concerned, see, I would say one thing, first of all, we need to you know as I said, India is a very very big market. Okay? Our customers are looking for you know lot of value add from industry leaders like us. We are working on that. You know you would see in the coming quarters how you know how we are improving you know our you know margins and stickiness and revenues in India. Your point is very valid that you know we need to have a geo diversity you know just to you know I mean and just to further hedge our business. We are I would say, our UAE business is showing a lot of growth and, in the next quarter, we will give you more details about it. You know, as we are penetrating a lot of new customers out there. We are focusing on, as I mentioned on a previous call, we are focusing on MENA region. Uday has given some hint today, and you would hear on that as well, when we make some substantial progress. Yes, we are working on that. Thank you. That's helpful, and all the best. Thank you, Balaji. Thank you. Our next question is from the line of Neeraj Shah from Dalal & Broacha. Please go ahead. Yeah. Hi. Thanks for taking my question. I wanted to understand one part, that when we see our margins on the enterprise front gross margins, we have recovered slightly compared to the previous quarter. Now, as on the last quarter also, you had mentioned that we would do much better in Q3 and Q4. In the H2, we probably reach 20%. Just wanted to understand, what are our pricing power triggers over there. How are we able to regain what we've lost, and what could be the trigger that we will be able to sustain that going ahead? That's my first question. Oh. Should I take that? Yeah, please. Please. Yeah. Okay. As far as regaining the business is concerned, okay, see, I've been in this business for more than 15 years now, okay? If you see the history of karix and our enterprise business at Tanla, right, we have seldom lost any customer. Okay? There would be some blips here and there where customers have maybe moved away for six months or one year, but they have come back to us. That is primarily because when they go out and they try other vendors, and then they see the difference. This is here the services are very, very important kind of services what we provide. That is one. The other thing is, as I said, about what value add we do to our customers. I just mentioned the largest bank we had just you know for WhatsApp. I would see that even though you might have lost certain revenues on SMS, but that would get compensated to a certain extent from my WhatsApp business. And on top of it we are working on even newer you know services and solutions with our customers, which we are going to give us additional business. Mr. Shah, do you have any more questions? Yeah. I thought the line was broken. My next question is, sir, in the presentation we've mentioned, with Wisely Network, if I'm not wrong, over there we've mentioned that roughly, INR 100 crores of gross profit is something that we can do from there per annum, and that's an exclusive deal. Can you just throw some more light on that? Just wanted to have some clarity on that. What exactly? How are we exactly going to get that gross profit and the consistency of it going ahead? Maybe I will take that, Neeraj, and then Uday can chip in where needed, right? We've talked about this partnership on the international messaging space, right? We've deployed our hub and firewall and it's operating. It's an AI ML enabled firewall of, I would say, probably unprecedented scale in this industry, where we're kind of processing over 35 billion messages a quarter, looking for anomalies and preventions, etc. It's a humongous platform and that's just kind of in early days here, right? What happens as part of the deal construct is we get a revenue share from the telco, and that has a huge potential. As your firewall works and your hub scales you get a revenue stream which is very predictable, very consistent and very long-term, right? That's really the revenue stream that comes in from there. That's how we are confident that this platform under Wisely will scale up to that kind of gross margin run rate. As the number of messages increase, would the number that we've stated, would that also increase? That is the correct understanding, right? Yes, that is the correct understanding. The only point I will make is the thirty-five billion that I talked about is the universe of messaging which is being processed through the firewall and part of our AI ML engines, right? It's not linked to that, but it's linked to the messaging that goes on the international messaging space. Understood. Sir, on my final question. On the ILD messaging side, how are the costings moving right now? Is there still room to increase the costing over there? When you say costing, are you referring to customer price or are you referring to telco cost, Neeraj? Customer price, sir. We've seen a price increase, right? There've been, we saw some price increase come through in Q2. Structurally, India still continues to be one of the lowest cost market in the world, Neeraj. We've kind of seen a big price uplift last year in Q2. We saw another uplift in Q2 of this year, right? I don't think you will see a further increase in the near term. We've seen two rounds of increases in the last 12 months. That's really how this market is playing out. Understood. Sir, I may have missed this one point, but if you can just help me with this, the CapEx figure that we've done this time in this quarter, what is that towards? We've capitalized our Wisely OTT platform. We've also seen an update we've started to see the commercial traffic go on that. It's a balance sheet item. It's moved from assets under development to the capex right? It's not a new balance sheet item. It's not moved from P&L to balance sheet in this quarter. It's moved from balance sheet to balance sheet in this quarter. That's the capitalization that has happened in the current quarter. Okay, understood. I'll get back in the queue. Thank you. Okay, thank you. Thank you. We'll take a next question from the line of Abhishek Anand from Centrum. Please go ahead. Yes, thank you for the opportunity. One is, the previous question when it was asked INR 100 crore annual run rate of gross profit. Is there any timeline that this will be achieved by when? That is my first question. Sorry, what is that? The Wisely Network, what is the timeline to reach INR 100 crore gross profit? I think we are more or less there around INR 95-96 crores somewhere in that line. Yeah. We are quite on the INR 100 crores per annum now. Yes. Sure. We are on the trajectory. Maybe by Q4 we would be at that number Abhishek. Okay. Is there any sense we can get that currently what is the overall Wisely contribution which we have? Can you repeat that? You're saying what is the Wisely contribution on revenues? Yes. We've not called that out. We've started to give additional disclosures on the Wisely platforms in this quarter. Maybe in the next couple of quarters or so, as we refine it, right, we would probably call out this separately. Thirdly, when we go to the website, we see now 5 customers within Wisely suite, 3 banks and a few other financial services company. Are they all live and how do we see, it's like for instance, Wisely Communicate, we say 30% of the critical UPI messaging flowing through now under Wisely end-to-end encryption. If you could just explain how in terms of ramp up, we are seeing with our customers when we are actually implementing these platforms, say within Communicate or OTT. Just to understand that, when we actually onboard a customer, how is the ramp up happening and therefore potential to gain business from them. Abhishek, basically like if you look at any customer like be it bank or e-commerce or payment companies, right? They have three kinds of transactions, right. The first one is OTP, which is pretty critical. The second one is transactions, right. And the third one is promotional, right. Okay. The promotional is the biggest and highest, and the OTPs are the smallest, but pretty critical. Okay. The banks would like to test Wisely capabilities mainly by pushing the critical messages. And that's where it's doing phenomenally well. Once they see the success, probably they, we would like to or they would like to use Wisely platform for even other transactions like be it promotional or be it transactions, right. As I told you on my speech and my letter to shareholders, like we have a huge opportunity to scale. It's only beginning. We just started. We are pretty excited about this journey on Communicate platform. Just one clarification. Wisely would have, say, five customers and all would be like, we would have been billing them? How should we look at it? Yeah, we started billing, of course. All the 5 customers. We have 5 customers. Just a clarification here. Three of the largest banks on this platform. The total customers are five. Okay? Three are in bank and two are in other industry. That's what we meant by that. Okay. Thank you so much. Thank you. Very helpful. Thank you. We'll take the next question from the line of Milind Karmarkar from Dalal & Broacha. Please go ahead. Hi. Thank you for taking my question. Most of my questions have been answered. Just one is that I find there is an increase in working capital requirements. Just wanted to understand where is it coming from. The free cash flow also has been impacted. I'm sure that must be because of the investments made. If you could clarify a little bit on that. Sure. Sure, Milind. If you look at operating cash flow, right, we had made our DSO actually improved in the quarter, which helped us. Yeah. We improved by close to 13 days, but our DPO went down, which is adverse by close to 17 days. Okay. Largely because we had to make an investment with in terms of better payment terms with one of the telcos that we are working with. That is something that we had done, and that has impacted the operating cash flow. On the free cash flow side, you're absolutely right, we've made investments. You know, we talked about two, three types of investments. If you remember in the last call, we talked about our platform modernization, and that required a certain amount of CapEx, which we have done. We're also investing in platforms. Sudhir talked about innovation and we have very, very aggressive plans on it. Obviously these investments are very small in kind, in contrast to their potential. You know, those are happening right now. There is a little bit of higher investment in CapEx. As well as some working capital investments that we made. Okay, got it. Well, thank you very much and wish you all the best for reaching the rule of 40 as fast as possible. Thank you. Thank you. We'll take our next question from the line of Amit Chandra from HDFC Securities. Please go ahead. Yeah. Hi, sir. Thanks for the opportunity. My first question is on the impact of the ILD price increase. Have you seen the impact of the ILD price increase in this quarter? Because it happened, I think, 2 months back. Also if you can, I don't know, because there has been, I don't know, 2 hikes in last 2 years. I don't know, on an YOY number, if you can provide what has been the volume impact, ILD volume impact. Roughly, if you can give an estimate. You know, the ILD price impact happened for a large portion of Q2, right? You know, there was a little staged manner, Amit, in terms of how the increases happened, but most of it happened within July, right? We had two months of benefit as far as the price increase is concerned. We've not called out an exact number or breakdown into volume and price, but there was a positive benefit of that in the revenues. Okay. Now, because you know, as you mentioned earlier, that ILD would be roughly 35-40% of your revenue, and in terms of volumes, it would be, I don't know, less than 10%, maybe 5%-8%. I don't know, can we see further volume decline in the ILD messages because there has been steep price increases that has happened in the ILD side. Also, if you can quantify in terms of the enterprise business and the gross margins. We have seen some improvement, and you have said that 1% impact has been related to cross-currency. We are at roughly around 18%, on our adjustment for that. Are we on track to improve that to maybe 19%-20% as you have, as you said earlier? I don't know, we can see some kind of elongation to that in terms of timelines. Okay. There are two questions there, Amit. One is the impact of price increase on volume, and maybe I will ask Deepak to kind of answer that, right? because there is a historic trend line on it. There's always some near-term impact, but I'll let Deepak answer that. clearly I think Deepak kind of answered the second question also in one of the earlier questions. Clearly the idea is to kind of drive profitability also, right? You know, on the enterprise business, right? We've improved a certain amount, as you rightly said, in Q2 vis-à-vis Q1. You know, there was an adverse forex impact of euro improved more. I think if the currency is kind of remain constant, we have headroom to improve that, right? The exact quantification, we're not calling out a specific number, but clearly that is on an improving trajectory. In terms of the impact of volume and price equation, maybe, Deepak, you can give some color on that. Yeah. This is about ILD business, right? Yes, yes. As Arvind said whenever there is a price increase, there is we see some percentage of volumes getting compressed by the customers, and they try and optimize their traffic. But then there is a natural growth in the business and organic growth and all that, and that gets compensated within within no time. This is the trend what we have been seeing. You know, on the question of margin trajectories, if you can give some clarity how we are seeing the improvement going in the next two quarters. Yeah. Amit, like we said, right? We very focused on margins, right? Obviously we're betting on both enterprise business as well as platform business. As platform business scales up, and we've kind of talked about a lot of evidence in terms of what's happening on Wisely. You know, the objective is to improve, right? If frankly, if we didn't have incremental forex impact, we would have probably been at about 18% EBITDA in the quarter, right? You know, I think there are certain levers which are beyond our control, but you know, we will continue to show an improving trend as far as margins are concerned. Okay. Sir, on the capital investments that we have done INR 109 crore in this quarter. Out of that, roughly around 55 odd crore is for the Wisely OTT. The rest is increasing the work in progress. What is this, if you can clarify on this? You are talking about from a cash flow standpoint, or you're talking about the balance sheet standpoint, Amit? If I try to reconcile this INR 109 crore. Around INR 50 crore is for the OTT and the rest, there is some INR 40 crore of the CapEx on some campus investment in a new R&D center, right? So, so I, I think- Mm-hmm. You know, see, I'll tell you, the capitalization that has happened. Mm-hmm. This is not capitalization of this quarter, right? In that sense, it has moved from assets under development to. If you look at it's a YOY number that you're talking about, Amit, not for the quarter, right? We are looking at cash balance movement between last year. If that is the side you are referring to, right? This is including entire 56 is included here. There are assets under development that we have, and there are other kind of CapEx investments. It's just normal CapEx investments in terms of your physical infrastructure, et cetera. That's really the breakdown. It is four quarters of CapEx that is getting covered as far as 109 is concerned. Okay. No, because I was referring to because if I see the capital work in progress increase from like, March end to September, from INR 13 crores to INR 50 crores, so increase of INR 37 crore there. Intangibles and platforms is roughly a growth of around INR 40 crores. If I compile that, then it comes to INR 90 crores, right? Apart from that, the investment in infra you're saying, right? This is- Yeah. If you see. Another- The other line, Amit, that you should also look at is assets under development, which has shown a steep decline. Okay? Okay. You would see that decline by INR 56 crores or INR 40 crores actually, right? Because it's actually a balance sheet to balance sheet transfer, right? We are also making multiple investments, as we talked about. If you look at a company of our size with the kind of platforms and revenue streams we are having, Amit, it is still a very, very thin balance sheet, in terms of where we are, right? We are making those necessary investments. We've been talking about it. It is largely in the nature of platforms. Certain amount of physical infrastructure and innovation. Those are the areas, right? I think they're well within the normal run rates of our business. sir my last question was on the Wisely ott capitalization. Are we done with the capitalization or over the last two years, how much we have capitalized for or how much you have spent on the R&D for this, you know I would say we've spent close to over INR 120 crore across Wisely over 24 months or slightly longer than 24 months. Okay. You know, platform business gross margins that we're showing, just 96%. Do you see any risk to that in terms of that going down, once Wisely scales up? see platform business will be substantially higher, right? But 96% is at current levels because of the tremendous profitability of Truecaller that we have, right? So that's how you should look at it. Okay, thank you, sir. All the best for the future. Thank you. Thanks. Thanks, Amit. Thank you. Our next question is from the line of Deepak Chokhani, an individual investor. Please go ahead. Thank you. The message from the chairman is very impressive and seems to lay strong foundation for future. This is the first time in the message I've seen that you've segmented Wisely into four segments. The last statement, of course, says that each of these segment has a potential to have gross profits of INR 100 crore each. Could you just elaborate broad timelines? I'm a bit confused about each of these segments. Which one fits where? Could you just quickly explain me or throw some light on that, please? Deepak, Uday here. See, let me step back and try to explain what the platform is platforms, right? We keep saying Wisely is platform of platforms, meaning to say that Wisely is our core platform, which we keep talking about as a single platform strategy. Okay. Either we develop other platforms which are going to ride on this main core platform. Sometimes like most of the platforms are developed internally or sometimes we partner with third party. In this example, like in Wisely OTT, okay, right? We have tied up with mainly with the Truecaller. Okay. The Truecaller is riding on Wisely single platform. So that's where we see a huge potential there. That went live last quarter. It is increasing, and we see a huge opportunity there, right? That's on OTT. Okay. In terms of the Wisely Network, which we deployed with Vi a couple of quarters ago. That was the first one to demonstrate a full potential. It is kind of reached around 95-96 crore INR ARR in terms of gross margin. The way I see is, don't hold me, but each of these platforms have got capabilities or abilities to generate 100 crore INR gross margin ARR. I mean, gross margin per annum, right. Okay. That's about Wisely Network. Wisely Communicate is mainly for SMS, where we went live with five customers. Three of the banking customers and two of the other customers. We also see a huge potential out there. I cannot really give you the timelines, but this Wisely Communicate platform has got a huge potential, like, because the volumes in India are around 50-55 billion per month. Okay. Mm-hmm. We are not even processing even 2% of the 55 billion transactions per month, right? We have a huge potential for the Wisely Communicate. The first five, six customers, we need to ensure that they see the value on Wisely Communicate. Which we demonstrated with a couple of large banks. We're pretty excited about this platform too. Did I cover all your points, Deepak? Yes, sir. Wisely Engage will be core AI, right? That's where it will fit. Absolutely. It may take a little longer than what we expected because it needs a lot of. It is, again, the core itself is a very large platform. It is riding on our Wisely platform. It will definitely take a little longer than what we expected. Other three platforms should be able to scale up quite quickly. Got it. These are the modules basically which we keep referring to that we'll keep on adding modules on the main Wisely platforms, right? Absolutely. One more question on Wisely Communicate. What does it drive the customer to engage on Wisely versus the normal? Is it just the pricing pressure? Is it the technology? Of course, last time also I'd asked this question, its answer was broadly the technology. I mean, let's say for example, HDFC Bank is through Wisely. Some other bank doesn't own Wisely, which is why they're going for the cheaper options. What can propel these other banks or other customers to move to Wisely? Is it because? Of course technology is there, but is it also a pricing factor? Can we throw in some incentives? We Deepak, effectively we are talking about Wisely proposition here, Wisely Communicate. Yeah. Communicate platform proposition here. Let me explain it up. Let me actually have to explain our proposition here, right? See, data bill is around the corner in India. It may be tabled to the parliament very soon in the next probably one or two quarters, wherein data security and data privacy is going to play a very important role in our lives. That's where Wisely comes into picture. We keep talking about encryption and decryption in the sense like each and every communication of the user is encrypted at the bank level and decrypted at the telco level. Okay? Sometimes we can go as far as handset level also. In the sense like this platform is primarily to be there to protect data privacy and data security of the users of the banking and e-commerce users. That's one of the biggest propositions. Secondly, like we use blockchain technology to address the audit trails of each transaction like. The banks, they have an opportunity to go back and look at how the message is delivered, why there is a lot of latency, and so on and so forth. It captures all the audit trails of the transaction from A to B. That's the second-largest proposition, right? Third one is nowadays, like each of these platforms are transacting in billions of transactions every month in India. Okay. The settlement between the two parties, whether it is aggregators or enterprises or the operators between the operators and enterprises. It is taking longer than what we expected. Sometimes it can go as far as two months only in terms of reconciliation like. This is where Wisely is going to come into picture in the sense like whenever you want, it will do it in the next 30 seconds, settlement reports. But because the settlement, these transactions are since written on the blockchain, and one can have the settlement reports immediately. Whenever the telco or aggregator or enterprise wants a settlement reports, they can fetch from the blockchain as we speak like. These are some of the large propositions from the Wisely. I have every reason to believe that it is pretty scalable, and it's got a huge potential going forward. Also one last but not least proposition on Wisely is the telcos. All the telcos are in this platform. Also the enterprises or aggregators have an option of choosing to work with the various telcos. Also telcos have an option of reaching out to the enterprise directly. Okay. These are some of the propositions of this platform. We are pretty gung-ho about this platform. This is wonderful, sir. Thanks for explaining because every time I, let's say, have an account with a bank which doesn't use Wisely. My question is, because I'm getting SMSs or OTPs from them, can I ask them to send me encrypted message or will the government at some stage kind of force them to do it? Deepak, if I have to be honest, like, the bank is the one who has to take the decision. I think I'm sure they have to protect their users' confidentiality. I'm sure they will see the value in Wisely. When we demonstrate the success of these three large banks, I'm sure other banks will follow or other enterprises will follow. Perfect, sir. Thank you so much. Thank you. Our next question is from the line of Amit Mishra, an individual investor. Please go ahead. Hello. Am I audible? Yes, Amit, please go ahead. Good evening, everyone. Hi. Most of the questions are already answered. There's a question to that. Can you please give some color on Kore.ai, and you know, some sort of, let's say, timeline if you can. Basically, they have five geographies with us on exclusivity. Wanted to understand the business and revenue model with them and also like the timelines, if you can please. Yeah. Amit, in terms of the conversation platform, the Kore.ai is the best platform available in the world according to Gartner. They have exclusive partnership with us for five markets, as you rightly said. It's a revenue share opportunity where it rides, A, on Wisely platform. B, whenever we win a business, we jointly pitch the business to our potential customers in this market. Whenever we sign, it's all long-term contracts. It's very long-term contracts because it takes a whole lot of time to integrate with the enterprise platforms. Deployment itself takes minimum six months, but once we're deployed, we're almost there for at least a decade. Okay. So in terms of revenue share- Who goes to the market and basically grabs the client there in new geographies? I'm sure in India we will do the legwork. But in other markets where we are not present, are we going to open offices there or it's through Kore.ai setup? How we are going to approach? Yeah. As I told you, Amit, like it rides on our Wisely platform. Our GTM team takes Wisely as a platform of platforms to our enterprises, right? They are going to offer a lot of, a whole lot of services on Wisely, whether it is Communicate, whether it is OTT, whether it is Engage or whether it is compliance. Okay. Our GTM takes, headed by Deepak. Like, they take a Wisely proposition to the market, be it India or outside India. It all depends on who we are pitching. Some people are interested to look at Engage platform, which here we're talking about Kore.ai. It all depends, right? To answer your question, like, we are the one who's going to address in terms of building the solutions and also taking this go-to-market in terms of GTM. This is what we do. This is the responsibility of Tanla. Right. Just to add we have a full-fledged business team based in UAE. Through that so we are reaching out to all the large customers in UAE and other countries in MENA region. You know, we also are talking to a few customers in Indonesia. You know, the Kore.ai is such a product that you have to go to a very large kind of enterprises who have a very big consumer business, primarily, banks and BFSI sector and so on. It's a very we are very targeted approach, what we are taking, and you would see some good results coming in. Right. Thank you. Just on the second the Wisely Network. So these SMSC servers and AI/ML firewalls are we planning to you know go outside India and go to telcos in different countries and put there to increase our network and you know eventually it brings more business basically if we have these servers in multiple telcos around the world. So is that the ultimate plan with this or something else? Can you please elaborate on that please? Amit, as we rightly suggested, like most of our platforms we would like to test with our existing customers in existing market. Once we see the success, I don't see any reason why we look at other markets, right? We are not in a great hurry to expand another market to just impress the market. Absolutely no. We would like to test our home ground before we look at the international market. But Wisely Network is a huge success. I don't see any reason why we should not look at global markets. Okay, understood. Just last question, if you can, please. On Trubloq, there is we talked about the module consent management, and it's live basically on Trubloq, but it hasn't been implemented. Do you have some timelines basically to from all the stakeholders, regulators, telcos? Are we heading there soon or it's gonna take time? I understand voice is not on the horizon right now, but the consent management I wanted to hear. Yes. Amit, it's a good question. In fact, the DLT, our product name is Trubloq. It's a massive success in India. Probably the one largest blockchain platform in the world in terms of volume that we handle every day and every month. It, we have to switch on couple of more modules, be it the content management, there are a couple of more modules which we'll talk about later. As far as the product readiness, we have been ready for quite some time. Our platforms are fully geared up. As you know, like we stay ahead of the curve. Our modules are pretty ready on our platform. It is a regulator, TRAI in this example, who has to decide on the timing. That question is to the regulators and operators, not to Tanla. As well as, product is for as we are ready in terms of product, right? You know, same applies to the voice also. The product capabilities we have already built. It has been ready, and it is the Indian telecom regulator has to take the call on these modules. That's very good, sir. Yeah, just the time, timeframe, I'm not sure, like, because it's keep on delaying from the regulatory side. Okay. Just one last question. Amit, let me answer that question. Like I think, if you go back and look at the tweets in the market in the last one week, right? I don't want to drop the names here. Everybody is referring to consent. Everybody is referring to scam, fraud in India. Yeah. I think our regulators are hearing that. I have every reason to believe that they will definitely ask us to go live as soon as possible. Very good. Okay. Just one last question, Uday. We talked about the 5, 6 platforms after Q4 to be launched. We saw post that Kore.ai and Truecaller. Wisely Insights was before then. Like you said, like still, like within FY 2023. Are we planning to launch some new products? Is still on in the plans or, I don't know, like delayed? Amit, I don't want to hijack this on this call. It's a good question. Right. I committed safe June. Let's hope for best. Okay, that's great. Thank you. Thank you, everyone. Best of luck. Yeah. Thank you. Thank you, guys. Thank you for joining the. Ladies and gentlemen, that was the last question. Over to you, Mr. Uday Reddy for closing comments, sir. Okay. Thank you for joining our call. Wish you all a very happy and prosperous Diwali. Thank you very much. Bye. Thank you. On behalf of Tanla Platforms Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.