Digikore Studios Limited ($DIGIKORE)

Ladies and gentlemen, good day, and welcome to the H2 FY '26 Results Conference Call of Digikore Studios Limited hosted by Karen Advisors Private Limited. [Operator Instructions] I now hand the conference over to Ms. Sakai Pachara from Kirin Advisors. Thank you, and over to you, ma'am.

Thank you. On the behalf of Kern Advisors, I welcome you all to the H2 FY '26 Conference Call of Digital Studios Limited. The management team, we have Mr. Avishek more, Managing Director and Chief Ecuaive Officer; Ms. HeniPahuja. Sees company secretion Compliance Officer. Now I hand over the call to Mr. Visa for opening remarks. Over to you, sir.

Thank you, and good afternoon, everyone, and thank you for joining us today for Digikore Studios Limited FY '25 - '26 Conference Earnings Call. I want to begin by thanking our shareholders, analysts, partners and valves for your continued support and encouragement. The last year demanded patience and belief not just from our team, but from every stakeholder who stood with DigiCore. And we do not take this trust lightly. So thank you once again for trusting in us and staying with us. Today's call is a question 1 because FY '25, '26 represents something very important for DigiCore, a decisive turnaround and an inflection point. We moved from an industry-wide disruption phase to a growth phase, sharper, stronger and more future-ready. Under project, Abema, we focused on disciplined execution tighter financial management and building a more resilient, scalable business while strength transparent and compliant with the market. Let me start with the industry context. The Hollywood writers and actors strikes create an unprecedented bonds. That period was painful for the entire global entertainment supply chain, studios, streamers, production houses and every vendor in post production and [indiscernible] Well, but the rearview mirror is behind us now. What matters is the windshield. Productions have restarted with the boom. -- green lights are back, content slates are being rebuilt across geography, Independent market studies continue to project strong growth for the global VFX and animation sector over the next 5 years, driven by the ongoing expansion of streaming content the scale of episodic production and the increasing use of VFX across Jon. In simple words, the demand environment is improving and the industry is entering a strong cycle. So our view straightforward. The industry is not just recovering, it is expanding, and Digitas positioned to grow within that. Now to the core digital performance in FY '25, '26. Like I mentioned, FY '25, '26 was a strong turnaround year for Digital Studio backed by the disciplined execution framework of projectable. Our consolidated results reflect sharp revenue growth, a return to profitability, meaningful margin expansion and balance sheet strengthening. Some key highlights for FY '25, '26 versus FY '24, '25. Revenue from operations grew 83.1% year-on-year up to INR 66.02 crores. Total revenue grew 91.5% year-on-year, up to INR 70.86 crores. moved from loss of INR 9.61 crores to a profit of INR 15.37 crores. PAT reversed from a loss of INR 7.2 crores to a profit a profit after tax of INR 12.64 crores. And the net worth of the company is up 37.1% year-on-year to INR 47.68 crores. A key operating highlight is that while total revenue grew sharply, our expenses did not rise at the same pace, reflecting strong operating leverage and financial discipline. The message is clear. We did not just recover, we recovered with efficiency. And we believe this is not one-off. It's the early impact of a structured program that was designed to strengthen financial resilience improve cash flow quality, enhance execution discipline and rebuild stakeholder confidence. Let me quickly explain why in simple terms. First, demand returned as production restarted, we converted pipeline into delivery, especially episodic. Episodic work gives repeat volumes, better planning and steadier execution. Take, for example, a project called One Piece, which we delivered last year. So we delivered Season 2 of 1 piece last year, which was approximately USD 800,000 project. And we've been now approached by the 1P team again for season 3 or 1, which -- for which the work will be starting in by June. So this is great. So when you get on to a large tentpole project, every year, literally, as the new seasons come out, we keep getting work on that. So that builds the pipeline of the company in the long term. Second, we sharpened execution. So we moved a lot towards discipline, tight delivery, tighter cost lines, better productivity and stronger financial management. And third, we invested ahead of the curve. We leaned into international business development, client relationships and future-ready capabilities like AI and virtual production workflows. We also achieved a major milestone in terms of securing a TP and Gold Star status, which matters a lot in the industry because this adds a very high level of trust with clients. So we are now among -- we are now 1 among only 3 BFX Studios worldwide with the PPN Goldstar state and the only listed VFX company in India to reach this elite year. In the context -- content supply chain, security credibility is not options. It is a gatekeeper. Many top-tier studios and OTT projects require vendors to meet minimum security standards, even to be eligible to court. This credential expands our eligibility pool and strengthens our ability to win larger, longer tenured mandates. So for Digital TPM Gold Star status is not a badge, it is a business advantage. On similar lines, we achieved Amazon cleared Zero status, which again, very few studios in the world has. And that gives us the advantage of quoting for certain Amazon projects, which are secured only for Tier security. Now as we move forward geographic expansion, the next pillar. Europe is a priority for us, and we have also been deliberate about opening up Latin America as a new growth lane. A strategic partnership with AFT Studios is a key step. ERP is 1 of Europe and Latin America's largest end-to-end production support houses operating across Spain, Mexico, Colombia and the United States. This partnership is not about one-off projects. It is about early access. It brings Digital into the pipeline earlier during preproduction and budgeting, improving conversion probability, repeat workflows and long-term client stickiness. Based on expected project in project flow and discussion, management estimates EFV linked opportunities could generate INR 30 crores to INR 50 crores of the FX revenue over the next 3 years. So this is how we are building predictable growth structured access, repeat pipelines and disciplined execution. Now let's talk about the engine that feeds all of this, which is business development. We have been exceptionally active on the business development side. Over the last 12 months, we have completed over 250 in-person and online meetings across U.S., Europe, Asia and Latin America, building visibility with network, streamer and production houses and supporting a higher-quality pipeline in episodic work. We are keeping the cadence more meetings, more demos moving because face time with decision makers converts. We also moved operationally to support this growth. We have been scaling our team capacity in line with demand, so we can take on larger and longer division projects without compromising quality or time lines. Now AI emesis 1 of the key things that we believe that we are among the 4 ales in India. So now I want to address the most important future forward lever, AI and content production transformation. There is a real question in the market. Will AI impact the FX revenues. And our answer is AI will change workflows, but it will also create new markets, and we intend to lead that cloud, not change it. We have invested in AI-assisted roto cleanup match move tracking and QC and in building proprietary workflows that improve speed and productivity. But more importantly, we are extending AI from support tool to content creation engine. So this is where Kingdom Games, our AI-assisted movie IP becomes a game changer. DiGaudio is producing Kingdom Games and AI-assisted CG animated feature will develop from global release. This is powerful and simple. What we did is we disrupted the traditional CG production pipeline, and we've got AI into that. And we do believe that we are among the first few studios in the world to have achieved that. Any of you who have not seen the Kidman trailer to Google digital studio kingdom games and have a look at the tralo. It is truly exceptional. I personally had meetings with several distributors across the world, and they do believe it's credible that a company in India can create Disney level animation at 120 of the cost of regular animation. That's the disruption we've created with this film, so lower cost turns content into a potential money spinner across multiple revenue streams because the breakeven point drops dramatically and monetization becomes far more attractive. And we are not thinking just about on revenue line. Kingdom games, the monetization plan is multi-am. We have SVOD, which is feeling video-on-demand, AWT, which is advertising video on demand, PWD,transactional video on demand. airlines, music and more. We are in talks with distributors who will be getting after to release theatrically in several countries as well as across 1, AVG, airlines and user distribution across the world. We would actually end up being 1 of India's first global IP where people from over 100 countries will watch Kildomgames in several languages. We have already partnered with several international companies for distribution and monetization, and we believe this can create long-term recurring revenue potential for DigiCore across multiple sources. While we were reaching out to people for monetization of Titan, we accidently delivered a great new revenue opportunity for our branded content shows which are already monetized and you've already made it something as an example, Casumba, where we already have 20 episodes, close to 20 episodes on air on Geocinema go Hotstar. And the next season of the episodes will be streaming by the end of May. Now the other opportunity that we've actually opened up is putting all these 30 episodes English version on over 200 advertising video-on-demand platforms all over the world, which would generate revenue for the company for year on year. So apart from just the revenue we generated by producing this content from the brand, now we have large-scale revenue and long-term revenue that we've generated through the AVOD platforms, which we'll be putting guessable by at the episodes on. That's a massive breakthrough that we've achieved recently. So AI assisted production economics create a new model for scale IP creation and Digital is building that model now with several global IPs lined up over the next 24 months. Before I close, let me highlight a few additional credibility anchors, our approvals and client trust create a durable more. Digital continues to be a trusted vendor to major studios and streamers, helping us qualify faster and win larger mandates. Project Aiman is not a onetime action. It is a structured and governance-led program, focused on capital structure, cash flow quality, execution readiness and stakeholder confidence. Our promoter-led actions and balance sheet strengthening initiatives are designed to improve financial flexibility at the right point in the industry cycle. Closing with 3 simple takeaways. Number one, FY '25, '26 was a turnaround -- we delivered strong revenue growth, return to profitability, expanding margins and strength. Number two, industry side or the next. We are seeing strong commissioning activity here and the meters are expected to be busy for the FX companies globally. And number three, Digital is building a future real global platform. We are strengthening trust through TP and Gold Star, expanding into Europe and Latin America through partnerships like ESP and preparing for an I-shaped future with AI-assisted content production at. There's a quote which I would like to conclude with the best way to predict the future is to create it. And that is what we are doing through strategic discipline and execution. Last, on behalf of the leadership team, thank you again for your trust in Digital Studios. We are excited about the road ahead, and we look forward to updating you as we scale global BFX expand into new markets and build a new generation content engine. With that, I open the floor to questions now. Thank you.

The first question is from Vinod Shah from BS Ventures.

sir. So congrats on a good set of numbers. So the revenue growth was 83%. So how much of it came from the new plants or existing clients?

So there has been a mix of new and existing honestly, we haven't broken down currently just for this call, what is and what is existing. So when you say new, obviously, 1 of that was the big 1 pace project, which we did, which was around USD 800,000, then we work with HBO on being landforms. So 1 very good sign is that we've gotten a lot of high-value direct projects in the mix. But honestly, if you ask me right now, of the breakup of that, what is the new cancer alone that won't have an answer to that immediately.

No problem. And what is the revenue split between Hollywood and Indian OTT or TV content for the on [indiscernible] ?

We don't do VFS in India. But out of this, the branded content revenue that is around INR 9 crores that is all the effective.

And we like our top 3 clients? And what is the percentage to the revenue.

I can't read publicly client names, but the clients would contribute around maybe 30% of our revenue for sure.

And what's the current order book?

Current order book is fantastic because we already have rings of power going on with Amazon, which is a massive project. We have 1 piece season 3 coming up. from our existing outsourced vendors, commitments of close to -- for the rest of the year because we take details from them on manpower planning. These were almost INR 40 crores worth of commitments from our using outsourced clients. So if you ask me today, we are sitting on close to INR 45 crores or INR 50 crores of order, which obviously includes around of INR 40 crore protection from our existing outsourced clients. So as we work during the year, we'll add more to direct clients direct projects and new clients for outsource as well.

Okay, sir. And sir, any like major production which is upcoming or which we have delivered recently.

I guess new project that's coming up for us is 1 season fee, which we estimate would be in the $1 million range of single project. And we have several more products that we are talking already with ESG in South America. In fact, as we speak, our Head of Business Development is in South America. There is a lot of new things out there. So I'm being updated on a daily basis. We're already bidding out there for several high-value projects, thanks to EFG who's a major player in the South American market. So we are going to look at quite a bit of traction from South America this year towards our revenue, which was literally 0 than last year. And this year, we expect Sateri to contribute from the Ravelo.

[Operator Instructions] We have next question from Dinesh Chanani as an individual investor.

So first thing bothers a company -- [Foreign Language] 370 deals, because [Foreign Language]

[Foreign Language] book to answer your question because of the strike, the cash has dried up so much in the industry. FX industry government Indian government [Foreign Language] A, to get inside is very difficult. [Foreign Language] industry. completely example [Foreign Language] within 2 months, the government announced agent up only benefits for companies because they realize cash flows are getting affected within 2 months of erases happening. I'm sure you heard the news that which companies still take an additional 10% additional funding top-ups from the government specific security backed by the government. [Foreign Language] businesses for cash flow issues [Foreign Language] support with no additional cash from the government. All the companies within the industry are not themselves on -- so in India, [Foreign Language] the company is announcing financial support.

[Foreign Language] more on a last year, year-end are 370 days okay? So you're declining fast in [Foreign Language]

So do you estimate the cash flow situation to become regularized in the next 6 to 12 months. [Foreign Language] because projects are last year [Foreign Language]So another 6 to 12 months because project demand has started on a range not -- but cash flow to regularize 6 to 12 months when the to. Yes, I don't see that as a problem for us. I see that as a thing that we have to plan for and we are always doing that because we know that the work is back. But the good sign is the work is back to for a problem in last year. Now as the work is back, the cash flow will come back collectively.

So my second question, [Foreign Language] receivables, increased [Foreign Language]

[Foreign Language] revenue but it is natural for trade receivables to increase its margin.

[Foreign Language] cash flow operating...

Because it is receivables, because they paid by the client, the payments have yet to come from the client, [Foreign Language] 90 to 120 days and some clients are even taking 180 days now [Foreign Language] payments, but now also clients are some clients are making up to 180 days for payments [Foreign Language]

[Foreign Language] operating from profit margins [Foreign Language] '26, '27 months like [Foreign Language] ready for margins.

[Foreign Language] operating profit margin is 30%, 32% [Foreign Language] But 1 thing that could change everything, which I have no idea right now because it is our first project, that is our AI-assisted movie Kingdom games. So almost ready [Foreign Language] end of June. We are talking to several potential distributors all over the world. And across various platforms, like I said, theatrically in U.S.A. and all your AVOD platform, that's what platform. So if that movie gets good buyers across the world, it could change our operating margin substantially because [Foreign Language] there is no more cost now. Whatever comes in from indie will be pure revenue. So that could substantially change, but I cannot put a number to that right now because we haven't actively started receiving offers from people. We will only start receiving offers from people once the film is ready, which is the end of June.

Okay. are you commenting that [Foreign Language]?

[Foreign Language] So we don't know that. So it's not right for me to put a number because it quarter [Foreign Language] on a the variance on an so much as an example, I'll give you an example. We are doing -- we are talking to a lot of people for a theatrical release in the U.S. trial release in U.S. move that strength will give the company INR 10 crores to INR 15 crores of revenue net revenue just by getting that is in the U.S. which is a massive opportunity for any Indian company. With [Foreign Language] So then we get INR 25 crores, INR 30 crores as a possible revenue from Kingdom games for the company. [Foreign Language] that can be between INR 50 crores to INR 70 crores. But -- so that's why it's very difficult to put a number to that right now.

[Foreign Language] But as a business owner, [Foreign Language] I can generate this kind of year?

Our regular operating margins will remain in VFX where they are right now. [Foreign Language] There's going to be no traffic than on the FX side of the business. We are taking active steps towards improving productivity in the company. So -- our goal is to improve that by 3% in this year. So it's not a drastic change [Foreign Language] 40-50 [Foreign Language] But even a 2% or 3% change, it's not -- it leads to substantial revenue because suddenly on we are targeting, let's if you're able to achieve hypothetically INR 100 crores revenue next year. we're doing a 2% or 3% improvement in operating margin, that's a substantial contribution to the bottom line.

[Foreign Language] Promoter holdings keep promoters [Foreign Language] Why the promoters are plays the holders?

Last year, we had a loss -- thanks unfortunately, banks, whole of last year, banks did not fund the company or we were unable to pick up loans from banks because of a loss-making balance sheet. So we had to go to NBFC and anybody needs security, nobody follows without secure. You also know that [Foreign Language]. So the only security available with the company technically is the shares of the company. So since the cash flows were affected and the company needed to borrow funds. The banks were not giving funds because of a loss balance should now obviously, the banks will -- they've already approached or banks to the value that that the company profit [Foreign Language] but last year, the range that we faced was we were not able to get funds from banks and the only option with NBFCs to provide some security and the security we had was on share. So that is why promoter had to pledge shares for borrowing funds.

Okay. And when we are planning for unpledging?

So we are -- so we've been actually working on a QIP, which is also known. I've discussed that in several calls as we're looking for we're planning for the INR 25 crores Q3. We were very close to doing it and then suddenly the plus place on or by the market [Foreign Language] We estimate in the next -- in this year itself, we will successfully complete a QIP or a preferential of INR crores, INR 35 crores. And obviously, that will up all our shares.

Okay. So on this year, we might see unhedging or holding, right?

Again, sorry, you are also from the market, you understand that investors today are not -- you see IPOs also, half of them are going on a very low subscription. So the markets have to move for a company to successfully carry out to QIP or fund. It's normal. We are focused that the market improves in the next 2 to 3 months, and we are able to complete our QIP and the rating improve, will definitely complete our futile. So that is also depending now on how the market.

No, no. [Foreign Language]

Holding unpledged is completely right now depending on the fund rates, right? [Foreign Language]that's not going to be that easy. [Foreign Language] As of today, we are very confident that our fund raise should get completed in this year. We are pretty confident of that. And that is why I can say that there is a good chance, a better chance of the shares getting unpledged.

Okay. [Foreign Language]

For qualifying from inbound at a certain criteria, right? And what then is the data capital of the company. So we did issue bonus on bonus last year. [Foreign Language] depends on -- there are 3 factors that is in QIP a factor, the future listing on an board is a factor so that does become a criteria to meet our top capital requirements, we will recently issue, but I can't comment on that right now because I have not discussed that with the Board. And unless I have board approval, I think we publicly commit that question.

And I'm a little bit unsatisfied, but it's fine.

[indiscernible] and anything and I would like to ask why you unsatisfied. What is the reason?

Pardon?

What makes you feel unsatisfied just for my information.

See [Foreign Language] a business owner, everyone knows [Foreign Language]

So that is why you misunderstood what I said. That is why you figured unsatisfied. [Foreign Language] business, which is our bread and butter and contributes maximum towards that business. APM is going to remain steady with 2% or 3% better than we are doing -- taking activities for improving productivity, right? So that I answered your question. What I -- what I want to ask you is [Foreign Language] a just from my knowledge.

[Foreign Language] derivatives short seller.

I thought in product. Let's assume you launched the Venture a new business only altogether.

I'm planning, I'm planning. So [Foreign Language] So I have a 2 or 3 clients in my portfolio. So I'm making good kind of money, so I'm satisfied with that. That's I not planning for the bank capital because I get the offers a little bit more in the past but I'm a at my home.

Let's park the discussion or the potential revenue from Kingdom gaming side. So if I want to just answer your question on online on the OPM, I would like to say about we are making an effort to improve our OPM by 2% to 3% this year by helping by productivity improvement across the production of AFX. So you think if you want to consider that as an answer, which is the fact you should consider that if that will satisfy you.

The next question is from and as an individual investor.

So I had a couple of questions. One on the overall sort of guidance for next year in terms of revenue and profits. And the second question is on the other businesses outside of BFX, what are the kind of traction that we're seeing in those, like the virtual production own content and some of those other business lines that we have? What kind of traction are we seeing there?

Sure. So for next year, we are looking at a guidance of Obviously, on the business-wise, around INR 85 crores odd revenue top line. I'm pretty sure we'll keep that, but that's the guidance we are working on with outside volume. On the PAT levels, we're looking at around INR 15 crores to INR 16 crores PAT. That is our internal target that we expect for us right now. On the businesses, VFX is growing. Obviously, it goes without saying that the FX that's why I say we'll beat our guidance of last year because last to last year, we had really only when we gave the guidance for FY '26, '27, there was no we didn't account for the AI film production, which we have achieved within the last 6 months itself. So BMS is growing and FX will grow as the business Branded content is growing, like I said, we already have 2 seasons delivered to geo and the streaming of CaseBantaha. The third season, as we speak, in fact, do just during the last Q3 and before the end of the third season will be going live -- we've already signed up brands. For the fourth season, we start filling brands for the fourth season [Foreign Language] fourth season of Catapult was estimated to go live on go in September. So we are really accelerating Casa breakthrough on Katana is the new revenue opportunities that we've got through an English version where we are calling it what it made. We are big Keenan English and distributing that to over 150 advertising review on-demand platforms worldwide, which will give us extra revenue that we never anticipated. Our second so branded content shop, which is a medical grows, we've almost finished filling up brands hospitals for sen for that. So there's good production on there as well. And obviously, the new kid on the block is the AI thing that we're doing, which is our first fill midkindom games. And like I mentioned earlier, to definitely do check out the trade out of Kingdom Gate, which is online for the world to see. You'll be really impressed with what you see. So we are gaining a lot of traction there. BP set has been flat, I would say. It did not worldwide, the BT was not adopted as a production or has not yet. I cannot say was not has not yet been adopted as much as most people thought it would. So BP has been flat. It's not really growing for us. So that's the 1 area which we are not seeing too much growth, but all other areas, we are seeing tremendous growth.

Just to reiterate, the top line target you're looking at is around INR 80 crores and bottom line of about INR 85 crores and 1618 impact, right?

Correct. 15 to 16 impact.

The next question is from Ishan Shah from Morningstar.

Hello Yes, good afternoon. So yes, first of all, congratulations for your basis. Thank you, sir. Yes. So I just wanted to ask that the employee costs fell 13%, while the revenue nearly doubled. So may I know, sir, what exactly happened?

No. So it wasn't just employee cost, 7%, 13% will revenue only double. So see, when the strike period was going on, we were carrying the cost of that employee, so we took active measures in, let's say, reducing a lot of our overhead employee costs in North America. Now when you produce even 1 person in North America that's like reducing it 20 people in India because the cost is so much of the North American person, so we really went hard on using cost in North America, so there is a massive cost reduction there in terms of employees because [indiscernible] of we had too much of cost. It's just that we had better productivity and better use of the current employees -- there were such numbers.

Okay. Yes. Understood. And I have another question. Like so the PAT margin is around 17.8% right?

So like there is a onetime like onetime thing or you can present this on year-on-year, so in fact, our efforts are to better the PAT margin as we progress. Any company works very hard to improve productivity so that we can pick up at margins. and it is our endeavor to try to better the bank margin for FY '27.

Okay. Yes. So any onetime gains that are sitting in current numbers centers numbers? So that I should know about or we should know about?

There's no unusual onetime gain, yes. That is a onetime gain thanks to Donato, which is the FX gain that we benefited from, which is great, right? Eversense. So the onetime or the other revenue items -- other revenue that you see, this is the FX gain, the foreign exchange et which is nice, we feel invoice 6 months earlier than a client has paid us after 6 months and the rupee become stronger, we benefit from that.

Understood, yes. So I have 1 last question. So where do you see the EBITDA margins that are normalized once the hiring and clearly happen?

So like I said, every business strides and like every business, Digicecially 1 of our focuses this year is to improve productivity. And we are going extremely strong on implementing AI systems and AI-based production technologies within the company. If I just -- before this meeting, I go to call with the technology team at Digital, where we are introducing the new things, which will improve our vote productivity, especially quite a bit. So we are working very hard on improving productivity through tools. Now AI is developing so far that while I may think that we will improve productivity by 2% or 3% or 4% this year. Tomorrow some new tools could come, which could help us improve by team. So we are keeping an eye out for these new tools and technologies nets to improve productivity by 3% at least this year.

The next question is from Ruben Meta, Presidential Investor.

Yes, having a great chat with you, but I have 1 question that what's your free cash flow for '26?

I don't have that answer immediately right now. I'll have to check the numbers. So I'm sorry, but I don't have an answer for that in...

No worries. And any profit or cash difference is? I mean our defense the profit and that we are reaching to the cash flow? Do you have the [indiscernible]

No, I don't have that. Those numbers right now, the cash flow numbers with me right sorry.

No, no worries. My other question is, what is your data days and have collection improved this year?

So debtor days has come down Year-on-year basis between FY '20 last year in this year. And we are working very, very hard, like I said, even before in this call to improve that, and we are already seeing an improvement. But honestly, it's going to take 6 to 12 more months for cash flow cycles and it is to regularize and when I say regularize the better cycle in the industry anywhere around, has in the forestries was typically around 120 days. Now post strike, we are going to be experiencing regularization, meaning 120 to 130 days, which is definitely better than today's situation and put that in -- but we would definitely -- and very conservatively projecting 6 to 12 months for it to come to that level.

Okay. Okay. And what is our debt position as of '26. March '26?

[indiscernible] our debt position -- debt loans Yes, loans. So the outside debt is around INR 25 crores, -- but that includes the bank OT and CC and all of that also. So completely.

Are we planning to loan it up? I mean.

Whether you missed the earlier part, but like I said, we are actively working towards a QIP or a preferential countries of INR 30 crores 35 crores. The primary objective of that is to lighten the depth of the company.

The next question is from Mahesh Set from Billiton. Mr. Minch, please go ahead.

Yes. I guess to know like if would demand softens again or like...

Voice is not I cannot hear you clearly.

Can you hear me now? Yes, we can yes. Yes. So I was just asking like if Goal Hollywood demand gets softened again break or maybe cuts VFX budget. So what's your plan to deal with this.

So a, it's not going to happen very, very soon because there are 2 or 3 good things that have happened. So everyone in the FX industry was scared about it that AI will VFNdemand largely but there was a witting announcement by the Academe recently that AI or AI actors will not qualify for a category awards. So now any of these big budget movies that we thought will become technically cannot be coming out because they also work a lot for the awards. So that is 1 thing that's happened. -- see all those projects which are shooting right now or have just started shooting or have just in [Foreign Language] they will now come into the FX space and over the next 15, 18 months, right? So what would happen is that yes, if there is going to be any AI-based reduction in FX, at least for the next 18 months, we don't foresee that, for sure, if there is going to be any data also because the things that are already filing right now, they are filing. And once you find they're going to come into the VFX stage. At least for the next 18 months or 24 months, we are very, very confident that this effect at all. Post which there could be an effect, we are preparing towards that with our different divisions and DigiCore branded content, AI-based content production and our various other AI platforms that we are working on, so even if there is a slight disruption or a slide you cannot completely differ up. It's technically not possible. If there's a slight disruption even very well take up with our other divisions which we've been binding. So that is -- I keep saying that we are no longer a pure play BFX Studio we have transitioned into a media and technology house so that we are not dependent purely on BFX and our revenues and profits won't drop in the future if there is a slight drop in FX revenues, thanks to AI. So we are very well preparing for that.

Okay. Got it. Can you also tell me about any project like Indian projects, Bollywood projects you are working on? or planning to work on?

We don't -- Balimor projects have extremely low budgets with little lower margins. we don't actively change volume wood projects or encourage polymer products that have no margins. So technically, if you ask me, if you ask me what is the revenue from FX from Bollywood last year, it was 0.

Okay. Okay. Got it. And can you also talk a little about which pipeline have and current order. Like you also like throw some light on project pipeline that...

I just mentioned to someone else recently, but yes. So if you look at it, we've just done a quick check last month itself to plan our workforce for the year because existing clients or existing outsourced clients in got indication of around INR 40 crores, of from our existing clients. And plus that also includes things like the 1 season 3 and the age of power edit Amazon. So we are very confident that if you're starting the year with around INR 40 crores, INR 45 crores worth of pipeline, we are extremely confident of touching that INR 75 crores odd mark on the FX side of business. and the INR 10 crores to INR 12 crores on the branded content, which will help us achieve our INR 85 crores guidance.

The next question is from Vishak Mishra Individual Investor.

Good afternoon Yes, Sir, my question is, in project team done or in the? And what is specifically less...

I'm sorry. I'm sorry, I didn't hear you. Your voice was not very clear.

Yes, it's much better. Yes, sir. My question is, is project been a new turn of? And what is the specific is left to execute.

So see project Aiman is not a project for the company, which is a revenue project. It is project that we have created internally, which -- it's just about giving a name to something which we have given, so that people can relate to that when we talk is execution strategy at Pico, which basically tightens discipline, tighter delivery, tightens costs, improve productivity and some commercial management. So it's not a project of a client project open. It is an internal project at Dicico which we have created to improve productivity and work towards the future of the company.

Sure, sir. Also give us 3 concrete things been actually change in the business.

So 1 thing is for sure. It definitely brought in discipline it brought in the push towards sales where we've been very, very aggressive on the sales were like as mentioned, we've done over 250 routings and the productivity, the keen eye towards going into the smallest of things where we feel even changing a small lever somewhere, I can improve the productivity of that 1 division or department by 1.23%. And let it change 15 levers across the company in different places. -- that's certainly that 0.2, 0.3 the neat a company-wide level become 3% or 4% so project anyone help us identify the small little things, which many businesses miss out sometimes. So they're going -- we are not looking at the business on a macro level. We are looking at it on a micro level, so that's 1 of the major things that we were able to achieve through this discipline.

So my last question is to launch the after [indiscernible]

I'm sorry.

I'm audible to you? I was asking you launched this after a tough year financial 2025. So what went wrong in the financial year 2025, that needed a -- so 1 of the main things that fixed automatically, which was anticipated was the inflow of work because there was little or no work in the VFX industry globally. -- in the calendar year '24 because of the strikes in Hollywood, which happened in '23. So when strikes happened in '23, it was basically the writers price, right? So when writers came back to writing projects in FY '24 -- not by the calendar year '24 in the early -- and like I just mentioned some time back that once from the phase of writing to the phase of FX, it can be a lever between 15 to 18 months because writing in preproduction, then shooting and editing and when it comes to the effect. So that's why a lot of projects -- majority projects were in writing in early '24. That's why most of 24, the work has really thinned a lot. So it is not about what sort of work really started booming from early '25 literally. So that changed, obviously, the revenue numbers to a very large extent.

Ladies and gentlemen, as there are no further questions, I now hand the conference over to Mr. Saki Panciera from Karan Advisors. Over to you, ma'am.

Thank you, everyone, for joining the conference call of DigiGo Studios Limited. If you have any you can add to us a research attradvisers.com. Once again, thank you, everyone, for joining the conference. Thank you bit -- thank you, anyone -- thank you, everyone.

Thank you -- and thank you again for attending the conference call. I really appreciate your time. Have a lovely day.

Thank you, sir. On behalf of Kirin Advisors, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.