Expleo Solutions Limited (EXPLEOSOL) Earnings Call Transcript & Summary

Good evening to all participants on the call, and welcome to the Q3 FY '20 Earnings Conference Call of Expleo Solutions Limited, formerly known as SQS India BFSI Limited. To take us through the results today and to answer your questions today, we have top management of the company represented by Mr. Balaji Viswanathan, Managing Director and CEO; and Mr. Desikan Narayanan, Chief Financial Officer. Mr. Balaji will start the call with brief updates about the quarter gone by, which will be then followed by Mr. Desikan, who will take over the financials; post which, we will open the floor for Q&A session. I would like to remind you that everything that is said on this call which gives any outlook for the future or which can be construed as forward-looking statements must be viewed in conjunction with risks and uncertainties that we face. These risks and uncertainties are included, but not limited to, what we have mentioned in the prospectus and filed with SEBI and subsequent annual report, which you can find on the website. With that said, I now hand over the floor to Mr. Balaji. Over to you, sir.

Sure. Thanks, Asha. Hello, everybody. Welcome to our call. Good evening. And since this is the first call for the year, hope we have a good 2020 to start with. We have -- for quarter that's gone by, the 31st of December 2019, we had some good news, but at the same time, the headwinds that we have had for the last 3 quarters haven't really fully gone as yet. So we've done -- we mentioned about our -- some of the shift in focus because of some of the slowness in the European region to focus on our direct markets, which is India, Middle East and Asia. Those businesses are doing reasonably well. And also, the October, November, December quarter typically, with lesser number of working days, always have a challenge in terms of our utilization and kind of the invoicing ratios. While some of it is mitigated because of focus on the Asia and the India market, it also has an impact on our profitability as well. And the other good thing that happened in this quarter is also the GBP, with some of the updates on Brexit resulting in our -- resulting in rupee depreciating against the GBP, which also helped to some extent in our bottom line as well. We added 3 new customers for this quarter. And the most important one is that most of these 3 customers -- rather, the 2 of these 3 customers we have added in our new generation technology areas. One is on data management and artificial intelligence, and the other one is on robotics process automation across the entire enterprise for one of our customers in Asia. So good signs from getting into some of the new generation areas. And apart from that, we have also been investing on our digital footprint and adding new capabilities within our Automation and Dev Ops area. And we have actually expanded our footprint with both our existing customers and also these new -- 2 new customers as well. Our top 10 customers, contribution for this quarter went down slightly primarily because of October, November, December and the lesser number of working days in Europe. From 60-odd percent last quarter, it is now at 59%. It's a marginal decrease but a decrease, nevertheless. From what we have projected for or what we have estimated for this quarter, we have done marginally better. And we hope that the 2020, the way it has started so far looks promising. And hopefully, we should get back to our $40 million plus of revenue numbers during the course of this particular quarter. That's quickly what I have from a business side. I'll pass it on to Desikan, who can take you through the financials.

Hello. Good evening. Overall, just talk about the revenue, we shall start with the quarter-to-quarter comparison, last quarter to the current quarter. Overall revenue has grown by 10% from INR 658 million to INR 724 million. And with respect to the profit before tax, it has increased by 15.2% from INR 124 million to INR 143 million. The major contributor is the ForEx of around INR 41 million, which is because of the GBP strengthening around 7% and euro by 3%. That has also contributed to the PBT. Our EBITDA was 17.2% compared to last quarter 22%, and the PAT at 14.5% compared to 12.7%. So our EPS for the quarter was at INR 9.96. And next is the comparison between the last year same quarter to current quarter. We had a 1.6% increase in the revenue from INR 713 million to INR 724 million. And our profit before tax increased from INR 78 million to INR 143 million. And our EBITDA was 17.2% compared to 19%. And our EPS in the last year same quarter was at INR 4.52 compared to this quarter of INR 9.96. A high level brief about 9 months ended. So the revenue dropped compared to the last 9 months from INR 2,217 million to INR 1,991 million. And at the EBITDA level, we have ended with 18.9% EBITDA compared to 19.3%. And our EPS compared to last 9 months stood at INR 24.9 compared to INR 25. So overall, we see that compared to the previous quarters, we have done better in this quarter, and also ForEx has helped. And we look forward for a better quarter coming. So with that, I'm opening up for any questions.

[Operator Instructions] We have our first question from the line of Pranav Mehta from Valuequest Investment Advisors.

Just a couple of questions from my side. So first, just a bookkeeping question, if you can just help me with the constant currency Q-o-Q growth for this quarter? And the second question is, so we have seen quite strong headcount addition in this quarter. And so I think this is the second quarter of positive net addition after a few quarters of decline. So now is it kind of a lead indicator of some improvement in our revenue trajectory? Or how should we look at this number? And if you can just help us with your headcount addition plans for the next year?

Okay. I will take up the constant currency question. So if you look at our constant currency compared to last quarter to this quarter, we increased by 1.1%. I'm talking of the net revenue. And on the overall, it's around 3.8% on the net revenue. So much is contributed by also ForEx, 2.7%, and actual growth is around 1.1%. On the headcount?

Yes. On the headcount, Pranav, your assumption is right. So last quarter, we increased marginally. And this quarter, we have increased. Most of the headcount that have been added are actually in the bottom of the pyramid, primarily in the entry level or less than 2 years of experience levels, focused on the technical skills that we are looking to acquire, based on some of the projections that we are seeing for this quarter. And some of the opportunities have already started during the course of the beginning of the year as well. However, I just wanted to also mention that based on what I mentioned earlier on the business mix by region, many of these businesses that we are adding are between Middle East, India and Asia. So it certainly has some challenges in terms of trying and maintaining the same level of profitability on these engagements. But it's not that it's not profitable, but it's not at the same level as what the profitability that you would get from Europe or U.S. But yes, the expectation is that this 40, 45 people that we have added during the course of this quarter, at least 75% to 80% of them would start delivering revenues to us during the course of this quarter.

We have next question from the line of [ Somil Shah ] from Paras Investments.

Yes. I would like to ask you, last year in annual report, if we see, there were contingent liabilities on -- regarding income tax and sales tax matters. So could you please throw some light on that?

See, actually, it was, I think, service tax or income tax, I mean, because majority was service tax and income tax. Those are the -- yes, correct. See, those are the things which was in the suspending from the assessment side. This is in the [ presence ] of assessment. Since you know that department takes time for it to kind of get to that assessment, and there are a couple of assessments which we went and came back. But still, it is in the -- it is on. Still, we have not got into conclusion on that. Maybe once we get that conclusion from them, maybe we can update you on that.

Because if we see, service tax matters, it is approx INR 785 million, so that's a huge amount.

Yes. With respect to service tax, of course, we have gone to the Tribunal. And we have not got any date because generally, in case of this, the case comes only after 2 years kind of thing because we apply for it. But mean -- in the interim, we have got a consultant opinion from a reputed advocate in the city about this, and we are confident based on their advice. And we are waiting for our hearing to comment. Generally, it takes time because they go by the order of the cases, what is pending. So we are waiting for the clearing.

Are you expecting it will be cleared in this year or maybe next year?

Honestly, I don't have an answer to that because it is a -- when we get a hearing date, it really depends on -- when we spoke to our consultant there, he was saying that it will take at least minimum 2 to 3 years because of the pending cases which is already there. So we need to wait for that to happen.

Okay. And one more question. What's the outlook for 2021? Because if we see from 2016, if we see our sales, it is hovering around INR 270 crores, INR 280 crores range. So do you think this year we can cross this hurdle and go beyond INR 300 crores maybe this year or next year?

See, basically, we don't mention any forward-looking statements. But when you look at the last 2 years kind of a performance, this year, if you look at overall, 2019 has been a little bit of slump for us compared to how we did in 2018. So -- but the positive aspect of it is quarter-to-quarter, we see some improvement. And this quarter, we did better than the last quarter. And going forward also, we look like our direct regions is more promising for us, which we feel that will give a good amount of revenue in the coming months. So it's again, it's a matter of how the...

What the expectation as of now, we want to break that, really, but if you ask me whether we will do it, yes, we are positive. But obviously, we are not sure.

Yes. So we can expect the current quarter even better than the -- I mean, the Jan to March quarter better than the current quarter. Can we expect this?

As of now, the indications are like that. As of now, the indications are like that.

Okay, okay. And can I know what are our top 3 competitors in the listed space?

So if you look at -- so we really don't have somebody who is -- at a global level, it's primarily the technology companies, the biggies like Cognizant, then TCS and everybody else playing a part of this particular role. Pure players in testing companies nowadays, if you were to look at it in the BFS segment, it's more regional. So there are other companies like Maveric Systems, which is only playing in the Middle East of the market and, to some extent, in India market. You have a QualityKiosk and APM and others who are primarily India-focused. But globally, it's primarily the larger IT companies.

Okay. But in India, the listed space...

Sir, sorry to interrupt. Would you like to come back in the queue, Mr. [ Shah ]?

Okay. Okay then. I'll come back in the queue.

We have next question from the line of Anuj Sharma from M3 Investments. We have next question from the line of V.P. Rajesh from Banyan Capital Advisors.

So one question, just trying to understand and I'm sure you have explained it previously, so apologies for asking again. What's the delta between total revenue and net revenue?

The total net revenue is the ForEx impact and a little bit of interest income. Majority, it is foreign exchange gain.

Okay, okay, okay. Understood. So just in terms of your -- if I look at the P&L, the other expenditure went up like 18% quarter-over-quarter. And I know it's a very small number in a sense, INR 1.4 crores or thereabout. But why such a volatility in that number? Was there any one-offs in that?

Yes, we did some expenditure. We did the internal marketing and sales and also from internal consultancy which we have taken with. It's more of a [ promotional fees ] and sales and marketing are the one which has contributed to it. That's one thing. Other than that, I don't see [indiscernible] on that, and yes, that's a major amount. And there are some maintenance cost, which has come in as a onetime, so not much. And this is not a -- both are not a recurring expenses. It's more of a onetime in this quarter.

So your recurring other expenditure is more like INR 8.6 crores or INR 9 crores, that number? Is that the right way to think about it?

Yes, we can say that. Yes. At the average, yes.

Okay, okay. And then secondly, from a business perspective, now that Brexit is sort of announced and all that, could you comment on the clients from U.K.? What are you hearing from them? And do you see potentially some activity picking up in, maybe not in the current quarter, but maybe in the next quarter?

So the general client and if you were to look at what we see in the U.K., there are some of our major customers who have already started moving in the direction of now that the elections are over, and there is no more uncertainty on Brexit. The only element is that when it is going to happen rather than whether it is going to happen or not. So there are some activities around planning that we are hearing from some 1 or 2 of our large customers. The others are still doing a wait and watch. We are still yet to see much of activity. But we hope that in the next, if not this JFM quarter, at least in the next quarter or certainly calendar year -- calendar quarter of Q3, we should see a far more traction.

I see. And in terms of the group activities with you, now I am sure that plans are frozen for the calendar year 2020. What sort of the takeaway in terms of the business being driven by them, which can potentially drive our growth?

So there is a new industry-focused management team from the group, which is in place, in some parts of Europe, so particularly, the Southern Europe side which is France and Belgium, the Benelux region. So there is specific sales focus on banking and financial services there. Of course, we're not sure how much of it will come offshore, but there is traction there. And Ireland is another market where there's a significant amount of traction from the BFS side. U.K., we still don't have all the leadership position for sales in place. But that's another action which is pending closer during -- hopefully before end of this quarter. But like I said, as far as France, Belgium and Ireland, we have a traction, and we also have some visibility of -- that's one of the contributors for some of these increased accounts, where we are expecting some business from these markets. France, we may not get much. But Belgium and Ireland, certainly, we are expecting that there should be something in this quarter.

I see. And lastly, cash levels have increased dramatically, so that's fantastic. And I understand everybody is waiting for the budget in a couple of days. But how soon thereafter would you guys be in a position to outline how to use that cash?

See, one thing is that, of course, every Board meeting we just informally discuss about that. That's one of the points which we feel that how it can be effectively utilized. We're still to come out with a very solid kind of decision on that. So maybe by this quarter end, maybe we'll have some more clarity on how we are going to effectively use that amount for the purposes which we have listed out. It maybe a buyback or repurchase or a dividend. We are still yet to conclude on any of the items, but most probably this quarter, we may be -- we will be able to -- Board will be able to do that because that's something which is discussed at the Board level.

We have next question from the line of Rohit Balakrishnan from VRDDHI Capital.

So I had 2, 3 questions. One, you mentioned that you won 3 clients in this quarter. And they are -- so can you talk a bit about that in terms of what would be the potential opportunity in terms of revenue in maybe next year or a couple of years?

Yes. So there are 3 clients, out of which one is an Asia customer and another one is a Middle East customer. Out of the 3, 2 of them are certainly customers whom you would call it as strategic customers as well. And we certainly have an opportunity to grow the large Indian bank, which is a progressive private sector bank. And we also have the largest bank in the Philippines who has signed up for robotics and process automation. So both the customers actually have significant potential to grow. The third one is more a technology player in the banking and financial services sector. So the requirements might be seasonal. So I wouldn't really attach too much of growth potential there. But the other 2 have the potential of getting to our top 10 strategic customers list at least in the next 12 to 18 months.

Got it. And here, you sort of mentioned the margins would be a bit of a challenge. So do you see the margins at these levels to be what they would be if they scale up here? Or there could be potentially some downside attached to it as we scale up with this?

It won't -- so we are very conscious in terms of what is the profitability because certainly, we don't -- we are not picking up businesses which are not profitable. It may not see a significant difference, but yes, there is a potential of some [indiscernible] Here and there, maybe 20 basis points, 50 basis points, maximum of a percentage kind of thing. So that's what we are expecting because we are trying to make sure that we are putting the right kind of resources with right profitability with each of these clients except for, of course, very niche and important areas. Now we've got a blockchain engagement last year -- last quarter with one of our existing customers. In some of these niche and promising areas, we certainly don't have -- we don't really look at profitability as the most important element. But overall, I don't see a significant decline, but there will be some marginal changes here and there. In this quarter, we also have one of the elements which contributed to our profitability is FX, so taking all those elements out, so those are stuff which are not in our control.

Yes. Right. So the second question was on Europe. So you mentioned that you also -- for previous participant, you mentioned that still, the U.K. clients are still sort of not coming both in terms of giving you projects, et cetera. So in terms of -- but at the same time, you mentioned in your press release that you've increased wallet share with some of them, some of the clients in Europe not necessarily in the U.K. So if you could broadly outline, I mean, how do you see this panning out in the next 3 to 5 quarters in the sense that do you see growth coming back for us on that account as well in the coming quarters? Or that would still be something that is very difficult to predict?

So U.K. is still -- I wouldn't say that all the uncertainties are over as yet. But the other markets outside of U.K., like what I mentioned, Ireland is one of the promising markets for us in this quarter and hopefully to continue in quarter 1, that is the Jan, Feb, March as well. And we hope that with some of these new sales force being in place, we should start seeing some traction. We should start seeing some traction on Belgium and some of these Benelux markets as well.

So just one follow -- I mean, just one follow-up on that. In terms of what -- I mean, what will change now versus what was the issue earlier for us to have sluggish growth in Belgium or in the Benelux market?

Sorry, what is?

So I was just asking that apart from U.K. market, yes, what has changed for us where we are hoping that maybe the growth will come back in?

Now we have our sales -- now we have a local management and sales team from the group, which has been established in those markets.

Okay, okay. Got it. And any update on U.S., Balaji, in the sense that anything from the group side you're waiting for -- I mean, you're wanting to coordinate that with the group? So any update or any thoughts on that?

Not much, Rohit, at this particular point of time. We are -- we have one customer who we got from the group contributing -- the contribution is not great but at least a start. But beyond that, there isn't too much of sales action in this particular point of time there.

Okay. And the potential is there for this client to go up in a sense from an overall spend point of view? Or is it more like a seasonal business or a one-off business?

No, it's not a seasonal business, but it's not a very large customer. So the potential, it could be -- from the current INR 100,000 or INR 200,000 that we do, it can probably go to INR 0.25 million, but it's not a very high potential customer.

We have next question from the line of Anuj Sharma from M3 Investments.

Am I audible?

Yes, Anuj.

Yes, sir, you are.

Yes. I lost out the lines, so I don't know if these questions were asked. But just a technical question. Why did our consolidated revenues fell while the stand-alone revenues grew? I mean, what was the discrepancy between?

So as far the revenue is concerned -- okay, maybe because of this -- the revenue, because of the ForEx, if you look at the consolidated ForEx, that includes the overall consolidated ForEx amount. But in case of the stand-alone, you see that other income, which is almost half of it. That's the reason you find it -- the difference is because of the ForEx element, which is there in that.

No, I'm not referring to the total income. I'm referring to the operating revenue, which is up 3.8% on a stand-alone basis but down 2.4% on a consolidated basis.

Because the revenue don't change between stand-alone and the consolidated because there is no change in the revenue. Because the revenue is the same, so as far as revenue is concerned, we don't have any change in the number. So if you can look at that, I don't see any -- there's no change actually. I'm not sure where you're looking at.

Okay. So maybe I will...

[indiscernible] at the upload, what we have done, you can see that through the stock exchange.

Sure. No, I'm quoting from the presentation. Nonetheless, the second question is we had 8 or 9 client losses this quarter. So what were the reasons for this? And can you, just on a broader basis, explain your client engagement strategy? I think we had 9 clients who were dropped.

Yes, I'll probably -- I'll clarify that. So in general, what we used to do was we have been taking our client off our existing clients list. Only as and when the contracts have expired or we are not -- what do you say, we don't have an active engagement. But what we did was, in this case, we had a few customers particularly in Middle East and others where there were some mergers and customers' contracts got combined and moved into one particular contract. And in a couple of cases where we had purposeful contracts, but there was no active work orders sort of in those engagements. So we just wanted to make sure that we actually have a right view of the numbers. And that's -- so out of the 9, 3 of them are actually combined with some of the existing contracts. And a couple of them have actually dropped out because there wasn't really any active engagement for more than 12 months.

Okay, okay. We had earlier in Q3 2019 also had a time frame when we lost certain clients then we had ramp up. We have seen clients ramp up. So how do you see that in the next 12 months, I mean? And if this is not the right metrics, then what metrics should we look at to understand how the business is shaping up?

You're looking at the right metrics. The metrics are right, Anuj. I need to make sure that we are on top of what we are putting up here. But the metric is right because we -- our objective also is to see how many active customers we have got, and other metrics that we look at is what is the average -- internally, what is the average revenue we make per customer. And try and look at what is the average revenue and average profitability of each of those customers. And that's how we evaluate each engagement and the opportunity and the potential as well. So what you're looking at as a metric, overall, at a broad level is right. It's just that this particular quarter, we had some adjustments that we had to make. And internally, we also have a couple of more indicators for us to make sure that we are also adding the right level of customers and also the right level of engagement and profitability from those customers.

Okay. The customers who you've had from Middle East and India, are they by nature short-term engagements, maybe 3 [indiscernible] and long duration as the European contracts or European customers?

Sorry, we lost you in between. Are you talking about the duration of the contract?

Yes. I'm saying the Indian and the Middle East engagements, are they, by nature, shorter-duration contracts?

No, not really. So we have customers in the Middle East who we have been having for the last 10 years.

Okay, okay. Also, in the last call, you...

Yes. Go ahead.

Yes. Also in the last call, you were talking about adding strategic partners so that we could expand and have a larger reach. Can you just elaborate something more on that strategic partner? And how is it taking up?

Sorry, can you repeat the question? I probably...

Strategic partner.

Strategic partner, okay. So strategic partner, the way we are looking at it is that if you look at our market, if you look at BFS as a market, the softwares that are being sold or the systems that are being sold are primarily what you would call as a packet software or products which are being sold. So what we are looking at is based on the current trend of what is important for our customers, which is around digital and around automation, we are looking at whom we could partner to sell those licenses along with our services. So that's what we have been and are trying to build. So there are quite a few Dev Ops tools in the market that are low code, no code platforms available in the market, which is what most of our customers are adopting as part of their open banking strategy. So we are trying to look at whom we should partner so that, that could help us in creating a better pipeline.

Okay, okay. And my last question is, since the journey we undertook to shift to technical and techno-functional company and we have been adding employees to that effect, can you just outline as to where we have reached in terms of this journey and how long we have to go before we are complete in this transition?

I would say that we set out a target for ourselves to say at least 50% our employees would be a techno-functional employee by end of 2020. And we are in that right direction. And this is a continuum, and it won't -- it's not that we will reach an objective per se. It's a question of how the market is changing as well, and so these will change as per what the market demand will look like. And we are only a very small speck in the overall market, so we need to make sure that we also track where our competition is going and where our customers are going as well.

Okay. So if 50% is your target, where have you reached now in terms of the mix?

We are -- so there 2 parts to it once again in terms of the mix because one is getting the resources with the particular skill set. The other one is getting projects with that particular -- for that particular skill set as well. In terms of getting the resources in that particular skill set, we would probably be able to reach the 50% much earlier than what we anticipated. But there is also the other component of making sure that we have projects also on the same set. So that's still some time to go.

[Operator Instructions] We have the next question from the line of [ Somil Shah ] from Paras Investments.

Just one question. Are we planning for any buyback or dividend for this year?

That's the one which I was explaining to Rajesh that we -- currently, we don't have any thought on that, but the discussion is on. Most probably by this quarter, in the Board meeting, there may be something coming up. But again, currently, as of now we don't have anything solid to tell you.

Okay. But at least, can we expect either of the 2, maybe either dividend or buyback?

That's a million-dollar question. But we have options open in front of us, and the Board is kind of looking at it. So maybe this quarter -- and wait until end of the quarter, and hopefully, we can have some decision on that.

We have next question from the line of Anuj Sharma from M3 Investments.

Yes. Sir, also, could you also explain to us as to how Expleo parent is helping us in acquiring new clients? And have you seen any help from the parent? Or do we expect something going forward?

Sure, Anuj. So before we get there, it's Expleo. So Expleo means fulfill or satisfy in Latin. And how the group is helping us, the -- we have defined and we are actually tracking what's the kind of business share that we are getting from the group over the last almost 6 to 8 quarters. And once again, like what I mentioned in the Europe and U.K. market, we don't sell directly. It is all through the group. And directly, whatever has been given to us from the group has been constantly moving up. We are currently at around 22% of our business coming in from the group, which is like signed by the group and given to us for delivery. And these markets where the group operates contributes to almost 60% of our revenue. Like what I mentioned, while U.K. is not growing, Ireland is growing. And we expect some of the other markets in Europe to start showing some engagements during the course of this calendar year.

Okay, okay. And one technical question. So this client ramp-up -- sorry, employee ramp-up, which has happened in Q3, would that continue? Or we see a stable base going -- I mean, what is the employee addition plan for the next 3 to 6 months?

We don't -- so as of now, the ones which we have added is based on an anticipation of some of the projects that are likely to come during this quarter. And also, there is training period as well. Like what I mentioned, we are hiring at the lowest level so that there is a significant amount of training period of anywhere between 6 to 8 weeks that goes into it. We don't see -- we don't expect a similar kind of additions of 40, 50 people quarter-on-quarter unless we have significant business activity. But ramp-ups are likely to continue because most of our engagements that we are looking at right now will have some minor additions for sure. It may not be to the tune of 40, 50, but we will certainly see positive headcount growth.

We have next question from the line of Rohit Balakrishnan from VRDDHI Capital.

Yes. So just 2 more questions. So one was on -- in conjunction with what the previous participant asked. So slightly more specific, is there any indication from the group that there would be more offshoring or to our vertical BFS? Because like the -- in last year period, there was fewer focus at least on the non-BFS vertical. So any thought on the BFS verticals for this year from the group?

Yes. So Rohit, the group has -- like what I mentioned, so we have -- the group has added some sales and market engagement folks in the Benelux region specifically, focused on banking and financial services. And there is an expectation that we will probably have one more senior leader identified for the European market as well for banking and financial services. And as part of the 2020 plan, Olivier himself has mentioned that growth in BFSI and growth for Chennai is one of his top 3 priorities.

Okay, okay. That's good to hear. And just other question in conjunction to this is that, so let's assume that the U.K. market this year also is sort of sluggish or flat. So do you expect a growth from the other markets to more than compensate for the U.K.? I mean, is there a potential and is there enough traction that you think there could be that we can perhaps more than compensate for U.K. even if assume that U.K. doesn't come through this year?

So revenue-wise, yes, there is potential for some of the other markets to compensate, if not fully, at least a significant portion. Also U.K. is a more profitable market in terms of what we would get as our revenues or what we could get as margins and more importantly also, the benefit of FX as well. So to that extent, while the top line might get compensated to some extent, of course, it may not be fully because the dip is significant. But the bottom line might not be at the same rate as what you would get typically from a U.K. market.

Okay. And is the difference like significant? Or...

It won't be significant because like what I said, we are very conscious about what businesses we are taking. But at the same time, it may not be at a rate of what you typically see in that market.

We have next question from the line of [ Manish Shah ] from Vajani Securities.

My question was relating to a comment which you made at the beginning of the call that your target remains. I did not get the numbers, so that's the reason I'm asking this question. The $40 million remains your sort of a target to achieve for the year. Is that correct?

We will cross -- yes, we hope that we'll cross the $40 million mark is what we said, yes.

Got you. In the current FY, current financial year?

That's right.

We have next question from the line of Rohit Balakrishnan from VRDDHI Capital.

Yes. Sorry. I just wanted the dollar revenue number for this quarter and the last quarter actually, if you can just give that.

Last -- this quarter, we are around the $9.4 million at a dollar term, $9.4 million. And compared to last quarter, around the same, so $9.1 million. So that's the last quarter to current quarter dollar revenue.

Got it. Got it. And the quarter last year, the same number, if you would have that?

Last year same quarter, it was around 9.3 -- $9.4 million, it is, yes, $9.4 million.

Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to the management for closing comments. Sir, over to you.

Thank you. So thanks for all the questions, and thanks for your continued interest in tracking our progress. Really appreciate all the time taken. We hope that we have been able to answer most of the questions. We look forward to seeing you again in the next quarter's call and hopefully with better results. Thank you.

Thank you very much, sir.