CL Educate Limited ($CLEDUCATE)

Thank you, and a very good afternoon, ladies and gentlemen, and welcome to CL Educate Limited's Q4 FY '26 Analyst Call. My name is Arjun Wadhwa. I'm the group CFO of CL Educate, and I'll be your host today. Welcome once again to our Metaverse platform called Vosmos. We've been using this now for over 3 years for our analyst calls. This call, as always, will be recorded, transcribed and made available in the Investors Zone on our website within the next 48 hours. [Operator Instructions] Joining me on this conference call today Mr. Satya Narayanan, he is the Founder and Chairman of CL Educate; Mr. Gautam Puri, Co-Founder, Vice Chairman and Managing Director; Gautam direct reporting of the EdTech business, which includes our Test Prep platform monetization and publishing businesses; Mr. Nikhil Mahajan, he is our... [Technical Difficulty]

Arjun has got disconnected.

Yes, it seems. I can't hear Arjun.

Arjun has got logged out. He's logging in. Maybe we could wait for 20 seconds. Otherwise, we will...

My apologies, everyone. I need to check where you lost me. Midway through the introductions of the presenters? Or...

Yes, yes. Yes, Arjun.

So maybe I'll just reboot that and just...

Maybe just introduce Yatrik and we could move on.

Okay. Perfect. And joining us for the first time today on this conference call is Mr. Yatrik Vin, who, of course, needs no introduction as the former CFO of the National Stock Exchange Group. He joins us today as the Chairman of DEXIT Global Limited and as an Independent Director on the CL Educate Board. Yatrik sir, as we fondly call him, is also the Chair of our Group Strategic Finance Council, which is an internal body we created nearly a year ago to provide strategic financial oversight, inputs and guidance on various governance and financial matters across the entire group with the aim obviously to create long-term value. Having completed the introduction of the panelists, may I now request Satya to come in and say a few words. Satya, over to you.

Okay. Thank you, Arjun, and welcome, Yatrik sir, for the first time to this group, and good afternoon, everybody. I'll take 5 minutes and make certain broad commentary and observations about the year gone by and the way we're looking ahead. Today, I'm particularly delighted to be giving you an update for one very specific reason, and that is the completion of the integration of DEXIT into the overall CL Educate ecosystem. The acquisition, the stuff that we had to do post that, integration of people, processes and the leadership transition, all of those are complete and that is something very, very important update in my view. And that's the context where I will take a couple of minutes to make some observations on the EdTech business and one specific observation about MarTech before I hand it over to Nikhil to take us through a little bit more of details of the year that has gone by. As you know, our core business, Test Prep, is a low entry barrier business and, accompanied with that, the advent and the acceleration of AI over the last couple of years was giving us a lot of anxious moments on how do we stay aggressive, proactive and not lose market shares while we still search for growth. And that search almost 3 years ago when Test Prep was predominantly the contributor in the entire education space for us led us to the discovery of DEXIT. And the reason why we went out and we are lucky enough also to get the transaction done is because DEXIT gives us a couple of very important strengths. Number one, it's a high entry barrier business. Number two, it's a technology backbone-led business, which is scalable. And at 10 million, 11 million assessments that we do, there are not many platforms like us now. And in the new integrated world, assessments and learning will now begin to kick in a lot of synergies as we move forward. Some of those have already begun to take shape. So the DEXIT integration has happened. And the second thing that we did during the course of last 12 months post integration was we continued our search on the other large addressable market opportunities where DEXIT and CL both could play together, and that's the second important breakthrough that we are seeing. While the higher education space is beginning to grow in India, one of the big opportunities that is opening up is that of higher education enrollment in universities. The expected growth of higher education enrollments in colleges and universities is expected to grow from INR 4.5 crores to INR 8 crores. And about 60% of them are expected to come in the online universities programs to be offered by the top 200 universities, NIRF ranked top 200 universities, including central universities, IITs, IIMs, state universities and so on. And I'm very happy to share with you that the combined entity of CL, 361 and DEXIT, because of their combined strength, we have been impaneled to partner with these top 200 universities. From among these top 200 universities, we now will begin our work to help them in enrollment, job readiness and career training and actually, also placement. So that's the second new area that will begin to grow over the next 1 to 2 years. So these are a couple of broad observations that I wanted to make, saying that the new entity is becoming a big engine, and the synergies of CL and DEXIT have begun to kick in. Three years from now, I think this will really look a very powerful, large play under CL Educate. On the MarTech side, I think there are two important things that are getting focused and you've been hearing about it. Number one is the continued internationalization of Kestone as a business. Singapore, Indonesia and U.S., they are continuing to grow. And the other thing Kestone team is working very, very well is the, again, the adoption of AI and technology platforms, around which services business also can be -- is going -- is getting built. So these are some broad observations that I wanted to make. And maybe at this stage, I will request Nikhil to take over and take us through the presentation. Nikhil, over to you.

Thank you, Satya. Before I get into the specifics, I just wanted to make a couple of headline statements. I think the year gone by has been a momentous year at least on two accounts. One, this was the first year where CL as a group crossed the INR 500 crore revenue threshold. And in my opinion, that is first big milestone to be covered and captured in its journey to move to the higher revenue orbit. The second thing which was important was the successful integration and stabilization of the DEX business from its earlier home at NSE into the CL. And the past 12 months, the smoothness with which the transition has happened, I think that has been -- these two have been, in my opinion, the two most momentous pointers to just keep at back of our heads as we go deeper into the presentation. Now let me just cover some of the key highlights of our financial performance. Our revenue has grown from INR 368 crores last year to INR 570 crore, which is roughly a 55% growth. EBITDA has grown from INR 33 crores to INR 69 crores, which is more than 112% growth. I think one of the most critical aspect which I would want to bring to everybody's notice is that the total cash generated from operations during the past 12 months is a significant robust number of INR 79 crores, up from INR 26 crores, which was the cash generation done in the previous year. Another critical aspect which I would want to draw attention to all of you is that during the year gone by, our interest and depreciation charge exploded to an amount of INR 85 crores from the last year's figure of INR 29 crores, so basically an increase of INR 56 crores in our interest and depreciation costs, largely fueled by a significant amount of debt which we took to fructify the DEX acquisition and also the associated depreciation which came partly as because of the addition of the DEX business as well as certain other depreciation charges on account of the acquisitions on account of PPA being done. The net cash generated on the balance sheet last year was INR 26 crores. This year, it is INR 46 crores. So during the last 12 months, we have added about INR 20 crores in addition from where we were. A brief snapshot. Our current outstanding borrowings are at about INR 233 crores. We have taken a debt of INR 210 crores to fund the acquisition. The acquisition borrowing is down as on date after having serviced for the last 5 quarters. Another key aspect, which I think is worth noting is that our overall working capital cycle has optimized, and our working capital size is currently at 50% despite roughly a 50% growth in revenue. So I think a very tight working capital management has led to a reasonable stabilization and strengthening of our overall cash position. Our cash in bank as on date is about INR 94 crores versus roughly around INR 50 crores last year. This is excluding the amount of INR 185 crores, INR 190 crores, which is for the RPS reduction redemption, which we are awaiting the final NCLT approval before that account is redeemed and passed on to National Stock Exchange. I think the key takeaways for the year gone by I think are the very robust cash generation coming out of business. Despite a couple of headwinds in different segments, I think the overall health of business is pretty good. The businesses are generating a significant amount of cash. And I think in the years to come by, the cash generation from each and every line of business will only increase, bringing in more stability and enabling us to grow more rapidly in the years to come. Arjun, can we move to the next slide, please? Yes. As you are aware, until the last investors engagement, we used to broadly cover our business in 3 different segments, which was EdTech, which was predominantly our Test Prep and the platform monetization business. We used to treat DEX as an assessment arm and a separate line of business. And MarTech, obviously, being a different line of business was treated differently. But going forward, I think with integration of DEX now almost complete, we have a enlarged our business into -- EdTech space into broadly two parts. One, assessment, which is our DEX business and Learning & Development business, which has been our Test Prep, university outreach, engagement and our publishing business, both being focused in and around the education services, education platform and education engagement to the customers. So on overall basis, the EdTech business now consists of assessments of the L&D business, and the MarTech business is our event and the marketing outreach and working with the corporate for the extended marketing arm. A brief snapshot of the business performance of the two divisions. So EdTech -- assessment our revenue -- operating revenues grew from INR 205 crores to INR 223 crores. Now this might indicate a reasonably modest 9% to 10% growth in revenue. However, I just want to highlight a couple of points. One, we have successfully rolled 100% of our existing clientele into the subsequent year with multiple year renewals beginning April '26 and going on. Number two, there were certain revenues of which we had order book confirmation. However, the delivery of those orders rolled over, which were usually expected in Q4 of last year into Q1 and Q2, which at times does happen in this segment because we, being an implementation agency, the agency which is controlling the examination as per the choice, what particular date, is that suitable? They roll it over by 60 to 90 to 120 days. So some of the business which is expected to close in FY '26 or recorded in '26 has rolled over into the current fiscal year. Number three, I think as we see it, the order book for FY '27, for the assessment business is almost close to 80% to 85% of the entire revenue, which we have achieved in the full year of '26. So just 6 weeks into the current fiscal year with an order book of close to 85% of the revenue achieved in the previous year, I think we are sitting reasonably ready in terms of the possible revenue growth which we can accrue in the coming year. So I think we should be able to show reasonably healthy revenue growth in this line of business in the coming year. The learning and development business, which predominantly constitutes our Test Prep and university engagement and publishing business, as we have been highlighting that this business has been facing structural headwinds because, as Satya highlighted in his initial input about the overall education space, especially the evolving space being churned pretty rapidly because of rapid adoption of AI, which is throwing the conventional methodologies of delivery of business, conventional pricing points of learning solutions literally out of the window. So despite the fact that our volume of enrollment grew by about 4%, the average realization which we were able to realize last year saw a dramatic downward movement by about 12% to 14%, which resulted in our overall revenue declining by about 11% from the previous year. A couple of also structural changes which have been impacting this segment has been availability of product in a very modular, flexible, small ticket size manner at a price point which is a fraction of what used to be the norm a couple of years ago. So earlier when students used to come for a full classroom program priced at anywhere between INR 30,000 to INR 60,000, thus students are actually going in for smaller modular components on the same program depending on what they wish to learn and what they do not wish to subscribe to at a price point, which is INR 2,000, INR 3,000, INR 4,000. So that shift has resulted in a realignment and a restructuring of the market and a lot of solutioning being available through AI-deployed tools at negligible or throw-away pricing or a significantly low price has caused a certain disruption in the market. We expect that this disruption is likely to continue for another 4 to 5 quarters. While things seem to be stabilizing, we expect that even in the coming year, we see this business not showing dramatic growth. We expect the business in the L&D segment to more or less remain flat. However, there are structural adjustments in the way in our cost structures, in the delivery platform, in the manner of delivery, I think we are restructuring the way the business is getting delivered to ensure sustained profitable growth in the coming year. Our MarTech business, again, has grew by about 11% on an overall basis. Our international business grew by about 20%. The Indian business grew about 5%. We continue to service some of the largest IT brands like Dell, Salesforce, AWS. Have added a couple of good brands internationally like Moody's, Adobe, Autodesk, especially in the international markets and serve the leading Indian brands, which we have never worked before like Deloitte, PwC, Emirates, Hilton, et cetera. I think the clientele list has expanded significantly, and our endeavor to be able to mine these new accounts in an extremely positive manner in the coming years should give a good runway for a revenue expansion over the next few quarters. Arjun, can we move to the next? Now I want to spend some specific time business-wise. So let me start with the DEX. While broadly I've given the initial update of the business revenue growing from INR 205 to INR 223 million, it generated an operating EBITDA of about INR 51 crores versus INR 34 crores last year. I've shared some of those details earlier. All the contracts were rolled over. 100% of the contracts were rolled over. And that was one of our first core objectives during the first 12 months of our transition. We have added 20 new customers and many of those new customers are from the academic space, for example, IIM Bangalore, FPSB, Ayush Ministry, Mazor Learning. And I think with the increase in growing trust of being able to penetrate more into academic environment, academic institutions like universities, colleges, schools, et cetera, and close synergy with CL, I think we are now entering a phase after, having stabilized and integrated well into the CL ecosystem, to press the pedal and accelerate the growth in the coming years. I think the core strength of DEX has always been its cutting-edge technology and innovation and with new technology tools continuously getting added to its armory, I think we are ahead of our other competitors in the space and will continue to do so, especially with rapid adoption and integration of technologies like bring your own device, BYOD, and AI-driven remote proctoring. While remote-proctored assessments in India haven't scaled up that rapidly due to cost constraints. But I see with our cutting-edge technology, I think DEX is ideally positioned to disrupt that market and rapidly expand in the remote proctoring space. I think historically, DEX has always been IT service, infrastructure deployed services player. For the first time, DEX, in close collaboration with CL, has now got into a long-term IP play with the development of the mySATHI platform and the technology platform which has started going out into the market. I'll cover specific -- some of those details later in the presentation. I've already covered our getting -- making deeper inroads into the EdTech system, advanced synergies with the CL Group. We are also making some initial initiatives and small steps into our global outreach strategic partnership with our execution and delivery of digital assessments internationally. I also wanted to share with all of you that in DEX, we recently post the retirement of the outgoing CEO, we have onboarded and successfully transitioned a new CEO to the business who comes with significant experience both in the technology space as well as having spent a lot of time in the education space in India. And I think DEX is ideally poised for a rapid growth in the coming years. On the EdTech space, I think while I've given some brief update, I think the entire sector is undergoing a structural readjustment. The customer and the consumer behaviors are evolving, changing rapidly. And as I shared earlier about the choice of customer going in for smaller modular products rather than going in for the entire length, full duration courses, taking in courses in small modules at fractional price point. Due to this disruption driven not just by AI, but also by the consumer behavior, I think the entire sector is readjusting itself to the new environment. The new unit economics are getting set up and every player in the industry is readapting, realigning itself to the changed environment. As things evolve, in order to stay ahead of the learning curve, CL has already adopted AI-led learning, modular learning products. We have reengineered our existing go-to-customer channel and our platform deployment through EasyApply, which facilitate on a scale for the students who reach out to the relevant universities at the earliest, has only accelerated some of those deployments. Besides that, to adapt to the changing structure -- structural changes in the industry, we have also suitably recalibrated and reinvested our cost structures to keep the business profitable and sustainable for the next year. Some of these things will start reflecting in the quarters which will follow during the course of the year. But I think the overall trajectory, while the revenues may stay flattish or another 4 quarters before they begin to see an uptick, I think on the profitability side, we will definitely see the needle beginning to show a positive upward movement from Q1 itself. Arjun, can we move forward? Well, I think I've covered some of these parts individually in the decks and the EdTech thing. See, one of the key movements in the way we are approaching the entire EdTech sector is that earlier the segment we used to operate was a small market, whether it was MBA, law, et cetera. Those were small markets. However, when the integration of DEX into the CL fold, which it now services about 11 million customers for one or the other kind of assessment and with the development of the IP mySATHI and universities and corporate beginning to align and sign up with that, I think we have now moved from small pool of the total addressable market to a significant larger pool of addressable market. And all that scale-up will be driven through technology in a pretty cost-efficient way. While some of those may not reflect revenues in the immediate quarter, but if we were to look from a 3 to 5 year time horizon, I think this is one of the critical framework and realignment in the focus of being able to move from a small pool of target audience to a very large pool of target audience. And as Satya said, with the number of kids expected to move from 4.5 crores studying in universities and colleges to about 8 crores in the next 5 to 6 years and a large chunk of it through online learning, online degree, et cetera, I think the movement to a larger pool itself will open up many more opportunities in a phased manner over the next couple of years. And that should reflect in our business outcomes over a period of time. Arjun, can we go now? On the MarTech business, as I shared earlier, our revenues has grown from by roughly around 11% to about INR 161 crores. EBITDA was slightly down because some of the new business which we added in the social events and the luxury wedding segment, that being in the incubatory stage, there were initial setup path and initial cost before the revenue case start scaling up from this year onwards. Our domestic to international revenue mix has been roughly 1:2, and we are hovering around that. Our focus for the next year and the year beyond that is predominantly driven by two or three primary focus areas: one, repivoting our revenue mix to higher-margin revenue segments like CP and technology products like Vosmos, which is our virtual UX platform on which we are currently holding this session. And agentic AI tools, account-based marketing, agentic tool, Versa, which we launched in the third quarter of last year, has seen a pretty good adoption with some of the leading brands in India like Salesforce, Dell, Infosys already having initiated work on that platform. I see greater adoption of this Versa platform by a larger variety of enterprise customers over the next 12 to 18 months, and that would help pivot our overall revenue mix to a significantly higher-margin product mix. We are working towards pruning low-margin MMS and pass-through businesses to enable sustained higher margins. We are working towards being able to realize higher price, not just by higher-margin revenue mix but also by able to reduce and optimize our cost of delivery, repositioning Kestone from just execution company to a solution-driven organization is also happening in a phased manner. I think with enhanced forecast generation over the next 12 to 24 months, I think this business should continue to grow at a steady, stable revenue growth with enhanced margins in the years to come. Arjun? We're happy to take questions now.

Actually, Nikhil, I'll also just request Yatrik sir to just share a few words while we put together the question list. Yatrik sir, it's a pleasure to have you here today. If I could request you could just say a few words. Thank you.

Thank you, Arjun. And indeed, very happy and privileged to be part of this earnings call for CL Educate and DEXIT and all the other businesses and companies. As Satya outlined and Nikhil specially covered, all the 3 businesses have done significantly good in terms of directional growth that the group wants to pursue moving forward. Talking specifically about DEXIT Global, yes, that's a very important vehicle for the growth as we move this thing ahead for CL Educate Group. And more particularly, as covered, DEXIT is largely a big technology platform play for the business. And the kind of cutting-edge technology, the use of AI, including some of the API-fications and robustness that we have actually invested our time and energy in last 1 year is something which is very remarkable. And this is going to actually lead the way to have the kind of accelerated pace and the scale of the business for all the 3 verticals. There is a region of developing a digital platform, which is so modular, so flexible. At the same time, it's a large kind of plug-and-play kind of platform with significantly high UI/UX. All the businesses of CL Educate, we contemplate and we visualize at some point in time would be operated through that one common large digital platform. And all the team members across the entire group are significantly -- working and very, very enthused about how to convert this vision into the reality and how do we use the technology as an important play for our business model. The financial performance, Nikhil has already outlined in significant detail. And while the different businesses have different color and dimension and nuance of their financial performance, one important thing is that as we move forward, we are looking at building a very strong, robust and significantly consistent and predictable business model. We are moving towards building an institutional way of dealing with the things. And all the boards of all the companies are significantly focused on this aspect of the business. So with those remarks, I wish all of you very, very thank you to be part of this call, and I also wish all the best to all the members of the team within CL Group. Over to you, Arjun.

Thank you so much, Yatrik sir, but I won't let you go just yet. As you can well imagine, there is a flurry of questions related to DEX. And I'll throw a few your way if that's okay with you, sir.

Absolutely. Delighted to take them.

Thank you so much. The first one is from one of our regular attendees of our investor calls and a long-term investor with us, Mr. Rahul Bhansali. He is asking if the current controversy surrounding the NEET examination opens up new opportunities for DEX and what are our plans for conducting such nationwide exams?

Yes. So thanks, Rahul, for the question. Indeed, that was the first thought that came to most of us when we read that kind of news. And potentially, as I understand, similar incidents had already also happened sometime last year or a year before. So as we see the industry pattern, things are moving digital as is the case in most of the other industry. And technology is going to be the future of EdTech business, and that's why it is called EdTech and not only education. Having said that, yes, it is a significant opportunity. And we are today conducting examinations for many of the marquee clients, including the likes of IRDA, as Nikhil mentioned so as also ICAI, Institute of Chartered Accountants of India, NISM and many other very marquee and very -- very, very reputed institutions and government bodies in the country. Those are all either 100% digital or into dual mode. But we see, moving forward, the industry is going digital way. All the building blocks, including the cutting-edge technology on surveillance that Nikhil outlined, which is really, really very lightweight, very flexible, [ API based ], completely microfinanced kind of technology with huge, huge use of AI is already ready with us. So given the mandate, I assure you that DEXIT Global is fully equipped to deal with that kind of service expectations to prime customer. So thank you for that question. And yes, as the team members, we have to be clear that we are ready for that.

Thank you. Yatrik, sir. There is a question from [ Mr. Helin Bagadia ] asking for a few more details about the DEX business. He's actually sent a list of 6 questions. So I'll just throw a few at you initially and then we'll take them one at a time. First of all, average duration of contracts and the split between private and government-based test and assessments.

Yes. Okay. So broadly, I think the mix of government and non-government would be, government, close to about 40%, 45%. And the remaining 50%, 55% would be private. That's the mix. Having said that, the average duration, while some contracts, they go for 3 years and 5 years, some are actually 1 year. Some are also instance and order based. So there is no fixed pattern. Different clients have different requirements and different format in which they operate.

Right. Next question from [ Mr. Bagadia ], what kind of criteria does the government look given the size and the scale of the different applicants for these contracts?

Yes. So I think partly you already answered the question itself. But yes, government contracts definitely and largely happens through RFP process. RFP has two components. One is the technical capabilities and other one is the commercial. The weightage to technical and operational resilience is generally close to about 65% to 70% with remaining about 35% to 30% to be on the commercial side. In terms of DEXIT Global's ability to build this kind of RFP is significantly high because, A: DEXIT Global is almost 15 years plus into this particular business. So... [Technical Difficulty] The brand, the visibility, the customer relationship, those are all very, very well-established, robust and consistent. In terms of our operational resiliency, I think I would say it's very, very high. And because of that significant high operational capabilities, coupled with high cost efficiencies and operational efficiencies and technology play with far and few employees running millions and millions of examinations throughout the country throughout the year, we actually score always to be potentially #1. In terms of commercials also, because we are a very lean mean organization, not heavily invested, no major legacy costs, and technology was our first tier thinking response in anything that we do, I think cost structure is also very efficient. So in both accounts, technology and commercials, our ability to win over different contracts is very, very high.

Thank you, Yatrik sir. As you can imagine with your presence, the questions on DEXIT are coming thick and fast. There's a question on how does the profitability compare between private and government contracts.

Well, this is too nuanced a question because whether it is government or private, it's not that there's a significant difference in the prices at which we undertake the contract. An important part to iterate is that ultimately, every market is a price-sensitive market. And there are new entrants even in the assessment space as we speak with potentially DEXIT and one more candidate controlling potentially 80%, 85% plus of the overall market. But having said that, that dominant position can always be challenged by new kids on the block. So we are always very watchful, careful about how they actually potentially behave and operate in the market. And we are always remaining on our toes and we want to always be two steps ahead of everyone when it comes to our efficiencies and ability to do cutting-edge technology and right pricing.

Thank you, Yatrik, sir. There are many more questions for you. I'm sorry. I'm going to request you to hog the limelight for a little bit longer. There's a question on have we started seeding corporate sign-ups in DEXIT for test assessments? And there's another question on -- with international universities coming into India with remote campuses, how competitive is DEXIT in that space and what are our plans in that space?

Yes. So I think Nikhil did cover in one of his bullets on the slide related to DEXIT. But yes, corporate has been one important area where we are actually approaching. But I just request Satya to just help me and augment my thought process. But when we go and approach corporates, it is not only the assessment that we actually want to offer, but it's a whole lot of other things, like the L&D skills that we possess or the content that we have or mySATHI that was outlined somewhere. These are, I think, the product offerings to the corporate. Assessment and our technology capability is only one augmented joint piece into the offerings to the corporate. But yes, corporate is one customer segment that is going to actually help scale up our business in the next 12 or 24 months. The second question was about international play. Nikhil did mention about early initiatives to have global footprints. No business today can not think going global. more particularly because we are completely indigenous, homegrown India-India kind of organization, and that gives us a very different cost efficiencies and capabilities. Till the time our skills are there, our cost efficiencies are there, there are people who are actually looking to us very, very seriously helping them take this particular entire technology play outside market. We are in the early discussions. And at the right time, I think we'll be able to come back and convey it to you with a digital business plan. Satya, would you like to mention something surrounding corporates?

You have mentioned, sir, but just to append to that thought. There are two specific use cases with the corporates. One is the assessments for recruitment into the corporates from campuses. That is something as a pilot is underway, like it got covered in one of the slides of Nikhil. However, more importantly, as Yatrik was mentioning, inside the corporate or the professional journey, a few corporates are already beginning to do pilots with us of assessments using 4Cs for promotion within the organization and career development. So the assessments will also be supplemented with learning and development module, which we will deliver to the corporates. So it's a very rich, large scalable use case as a partner to the business leaders or the HR leaders. However, it will grow over a period of next 4 to 12 quarters. Back to you, Arjun.

Thanks, Satya. There are -- While I do have you, I just also take up there's a slew of questions from 3 or 4 different individuals. Nitya, Darmish and Rahul as well have asked about the fundraising plans that we had spoken about previously in the last couple of quarters, where we are on those and any specific updates on the same.

Arjun, you have thrown that at me?

Yes, please.

Okay, okay. So I think I would like to mention that in the current scenario, on the fundraising part, we are on a slight pause given the overall environment, as you all know. However, the work towards that happening in a manner, in an environment where the fundraising is of value -- at the right valuation and it can bring in further acceleration to the business, that is uppermost in the minds of the Boards at both the entities. And we will keep you updated as we go into the next quarter or 2 on what is the exact steps that we are taking.

Thank you, Satya. There's a specific question from Mr. Pratik Giri about the losses from our discontinued operation, if they are over or we should expect any of these in successive quarters. Bulk of those are done, Pratik, if there might be a little smattering of it in Q1 of this financial year. But beyond that, we don't expect to see any further losses coming in the discontinuing operations. There is also a question from Mr. Subrat Das requesting an update on our plans for TalEvate. Nikhil, may I request you to please take that.

Yes, I'll take that. So we have done the internal product testing and the initial go-to-market engagement and initial pilots with a few chosen set of corporate is currently underway. I think we have about 3 or 4 corporates who have signed up and are getting enabled. I think our goal over the next few quarters is to be able to sign up and list about 8 to 10 corporates about 100-odd jobs and test the efficacy and the MVP version of the pilot before we scale it up on a larger scale.

All right. Thanks, Nikhil. There's a question from Sameer Joshi on access to a quarter-on-quarter performance for each business. Sameer, you'll get that in the segment revenue sheet. It's Sheet #4 of our consolidated financials that we've uploaded on to the website. You'll see the segmented revenue for the entire year, and you'll be able to see that for the quarter most recently concluded in the December quarter. and you will also be able to access that in the half-yearly report as well. So it will give you the 2 previous quarters before that. There's a question on our plans to sell some of the assets that are on our books, the land assets. We continue to look for opportunities in that space if we can get something at the right price. As and when we have a specific update, we will share it with you. But yes, we continue to look add those offers as and when they come our way, and we have a team of people who is working on trying to get us a buyer for those specific land assets where we are looking to sell, especially the plot of land that we have in Raipur, which was [indiscernible] . Moving on, there are some questions on the EdTech business. Gautam, may I bring you in for some of those? GP, if I'm audible, if you could just confirm.

Yes, Arjun, you're audible. Can you just give me time. I have some issues in my audio.

Yes. There's a set of questions on the EdTech business. If you can please provide a little bit of business insight in terms of how we're doing across MBA, law and [ CVT ], where do you see more headwinds and industry-wide how that is moving. There are a host of other questions, but maybe I will just request you to start with these, and then I'll come back with you.

Okay. So let me start with the industry. And if I may follow something, just remind me. Now unfortunately, our industry is not an organized one and very little augmenting data is available. But whatever data we have from the market sources effectively is telling us that practically everyone in the industry is facing headwinds, whether it is in the MBA, law or IT. Either the headwinds are in terms of the numbers or in terms of the pricing or in both. Effectively this is in boiling down to the fact that in the industry today, there are no entry barriers. Earlier, if we go back 4, 5 years ago, to even start the business, you had to make some investment. Today, all you need to do is open a channel on YouTube and you can start your business. So the entry barriers have collapsed completely and which also means that people are willing to sell programs at a very low price initially. And this is what is impacting many of us. So what has happened is that while we, as an organization, have been able to hold on or to increase our numbers depending on the segment, the fact remains that the product mix has changed significantly. And hence, our the ARPU, or the average revenue per user, has come down. If you look at the specific domains, by and large, the UG ones or the UG segment, which is law, IT, this is where we are either growing or holding on to numbers. MBA, we have grown numbers but at a much lower ARPU because of the product. But typically difference to understand between MBA program versus the UG or the Law, BBA, IPM program is an MBA program typically is self-funded. So himself or herself is paying the fees. And there, they tend to be a little conservative and they look at options. And hence, you find that as far as MBA is concerned, there is a larger number of students that we are attracting towards [ test series]. The full product -- the full program, which was classes, [tests], online, off-line, everything combined, the standard thing is something which is under pressure across. However, when we go to the UG side, which is Law, BBA, IPM, this is a place where typically the parent pays and they are the ones who are actually willing to pay an extra amount to make sure they go to the right space and they don't want to compromise on quality. So this is where we have been able to hold on to our prices or raise our prices in some cases also. And this is where we have seen number. And going forward, we see a greater, let's say, increase in the UG segment, law, BBA, IPM as compared to the MBA segment. MBA, we will continue growing numbers, but in terms of the revenue, we are likely to either separate this or a little down purely because of the fact that the products which are we asked for now or which are the preferred to are smaller components. As an organization, we have created those programs where a student wants only one part of the program a student can load. Whether it is MBA, law, BBA, IPM that's available, we see the biggest uptake of this in the domain of MBA only. So that's the overall industry scenario. Arjun, can you repeat the other questions?

Yes, if you can give a little bit of specific business insight across MBA, Law and [ CVT, ] where do you see more headwinds?

Yes. Arjun, I have covered that.

Yes. And any specific commentary on the disruption caused by Physics Wallah and if we have any plans in terms of high volume disruption and how we intend to combat this kind of a disruption.

Okay. So Physics Wallah kind of players are not really competing with us. They are at a much lower price point. And that is also not the focus there, given that the market size of our products is much lower. Their basic focus appears to be towards tuition, JEE, NEET, which are markets of 10 lakh-plus and of late they have ventured into the government exam where the market is of the order of INR 50 lakh to INR 1 crores. However, they have programs which are competing with us but at a very low price point, and we don't see significant, let's say, traction for them. What we have seen, by and large, is that students who are enrolled with us also tend to take one of their programs because it is coming virtually for free. So that is one part. However, we would not want to work on this assumption only and say [Foreign Language] no one will go there. The fact is there is a segment which is willing to go for that program. So last year, we had experimented and launched a couple of programs of the same order, not at the same price level, maybe about 50% higher than Physics Wallah, but yes, maybe about 1/3 of our regular pricing. So those are the programs which have shown growth traction and we are going all out for that. Those kind of programs will be there. Again, they will be adding to the numbers, but they are unlikely to add to bottom line significantly or to the revenue significantly.

Thanks, GP. There are follow-up questions also in terms of what have we done from a cost rationalization perspective to improve the profitability in the EdTech segment.

See, one of the things -- okay, some of -- you talked about AI, also let me take that up along with this answer, okay? So the first thing is AI is also a tool that is helpful for us. So from a content generation, from a back-end perspective, from a process perspective, AI is something which we have started deploying, and that is the way we will be able to also cut down our cost as we go along. On the other side, personalization is significantly dependent on AI, where I'm able to identify the specific requirements of a student who is studying with us and suggest the right program for the student or the right inputs for the student to be able to improve their performance. So AI is a tool that we are using. Personalization is something which is on. And we are doing a few experiments. And in the next 1 month or so, we will be launching programs which will give the complete freedom to prepare the way they want. That will be a initial pilot. If successful, we load it out to all the other programs and all centers in India.

Thanks, GP. Satya, there's a question on a few more details on how the EdCIL impanelment will impact us. Is that something you'd like to take?

Maybe I can make a couple of summary comments, Arjun. Today, India has to meet its large goal of gross enrollment ratio going from 30% to 50% of kids graduating out of Class 12. In order to do that, some specialized organizations like us, we have been impaneled. Now the introductory letters of that will reach all the 200 universities, and we have already been in conversant with many of them. We work with many of them in DEX and CL, et cetera. It becomes an additional deepening of that relationship opportunity from working for their enrollments, working for their design and development and deployment of online programs if the university is not familiar with that as a tool. As you know, we took a majority stake in 361DM that comes in for relevance here. And number three is the career prep job-readiness preparation and getting on to the job. Those are the new value-added services that we can provide to the universities. So the point Nikhil was making about the pivoting of the business to become a little bit more greater percentage coming from institutional for any 1 of these 3, 4 business units is a possibility. More I think as we go past the next quarter. We'll keep updating you.

Thank you, Satya. Yatrik sir, if I could just bring you back for a minute. There's a question from Mr. Rahul Bansali on Dr. Abhay Jere coming on board as the new CEO and MD of DEXIT, and if there are any low-hanging fruits that can meaningfully change -- boost the trajectory for DEXIT going forward. And also, while I have you for a quick second, Mr. [Helin Bagadia]... [Technical Difficulty] ...would like to know how our order book and if we can explain how that works, why it is not 100% revenue, if there's 100% order book roll-over -- 80% order book rollover.

Okay. Sure. So I think Dr. Abhay Jere comes from a very, very significantly experienced and well nuanced background. He's also a face known to most of the people in the education sector, more particularly in the schools, I mean, in the colleges and universities. So the kind of experience and the relationship that he has because he was working as Vice Chairman of AICTE and he has lots and lots of understanding of how different universities and colleges, they potentially operate. So that is one important area of growth not only for DEXIT, but overall, for the entire CL Educate Group. So that is where he comes for a significant value addition to us. So that's the answer to question number one. Second one is, while 80%, 85% Nikhil mentioned, is already the coverage ratio as we start the year in FY '26, '27. Ultimately, the way we look at that business is we don't just go after the order for the current financial year, but we always go for a very robust rollover for the next financial year. So the efforts during FY '26, '27 would not only be to service these 80%, 85% of the order book, what we have in hand, but also to start next year with the equal robust number. So the marketing business development efforts are always targeted to a significantly higher than what we actually recognize in the books as the revenue. Also, as Nikhil mentioned, if you recall that sometimes it is -- or the most of the time, it is a client and customer's priority and their timetable with which the actual examination takes place. So sometimes, we have the order in hand but you're not able to successfully convert into the balance sheet revenue because the exams are just spilled over from 1 quarter to another quarter. So on the cusp of March, it's always the case that you have the order but the revenue will be booked in the subsequent quarter. That's how the industry behaves.

Thank you, Yatrik sir. There's a question from Mr. Sameer Joshi on the cash and bank balances on our books. And there was a question earlier on our -- on the current liabilities that we have and how they have changed from last year. The reason I'll take them up together is because the answers are related. If you recall, as part of our transition from the acquisition when we were moving from NSEIT acquisition from under the NSE Investments umbrella to DEXIT Global under the CL Educate umbrella, there was a certain amount of cash left on the balance sheet which NSE was unable to upstream because there were insufficient reserves at that point in time. So a capital reduction scheme needed to be filed, which was going through the NCLT route. And it is now at a stage where the order is reserved. And the next date of hearing is actually tomorrow, which is 15th of May. That cash that was left behind was approximately to the tune of about INR 182 crores, and it has generated interest during the time it has been with us for almost a year to the tune of about [ crores ] as on date. And at the time of closing of these financials, it was about INR 11.5 crores or so. So about INR 193 crores, INR 194 crores of the cash that you see on our balance sheet belongs to NSE, which will get canceled off when the capital reduction scheme is concluded and knocked off against the preference shares and will be upstreamed to NSE -- will be transferred -- will be upstreamed from DEXIT to CL and then transferred from CL to NSE investments, hopefully, over the course of this year, which has resulted in... [Technical Difficulty] You lost me for a second. So I'll just repeat what I said last. The capital reduction scheme is expected to be concluded soon. So it has now moved from a non-current to a current liability, and we hope to take that to closure at the earliest possible. And yes.... [Technical Difficulty] I'll move on to the last question for the day, which is on our MarTech business. Nikhil, there's a question on how Versa will impact our MarTech business in North America and what are our specific plans for that region?

So. See, the way I will take that is Versa will impact the way marketing services business gets done across the globe, whether it is in India, APAC, North America. So after the launch, last time in September, October, we have started doing small pilots with 3 or 4 customers, including Salesforce, Dell and now Infosys. And we have received positive thumbs up from most of them. The deployment of Versa enables these customers to engage with their customers and potential customers at a fraction of a cost than what they earlier were able to do, especially for enterprise sales customers. But I think how quickly it scales up and how quickly it translates into revenues and at what scale and magnitude, I think the next 4 to 6 quarters will decide. Incidentally, the work we are doing with Salesforce is for the North America market, Canada to be specific. And I think the yield and the results for the first 3 months are positive, and we expect and are hopeful that it will scale up not just from Canada to the hard core U.S. market over the next couple of quarters as we keep delivering outcomes to the relevant product teams in Canada.

Okay. Arjun?

Thank you, everyone, for joining today's call. If you have any question that were left unanswered, please see to get in touch with me or my team and we'll be happy to take them. Thank you, everyone, and have a good weekend. Bye-bye.

Thank you. Thank you, Arjun.

Thank you, everybody. Thank you, everyone.

Thank you. Goodbye.