Health X Platform Limited (HEALTHX) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Health X Platform Limited Q1 and FY '27 Earnings Conference Call, hosted by Go India Advisors. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Ms. Soumya from Go India Advisors. Thank you, and over to you, Soumya.

Hi, everyone. I welcome you all to Health X Platform Limited Q1 FY '27 Earnings Con Call. Please note that discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risks pertaining to the business. We have on call today Mr. B.L. Mittal, the Managing Director and CEO; and Mr. Lokesh Agarwal, the CFO. I now request the management to proceed with the opening remarks. Post that, we'll open the floor for Q&A. Thank you, and over to you, sir.

Good afternoon, friends. I'm B.L. Mittal. Welcome to the Health X Platform Limited Q1 FY '27 earnings and business update call. We sincerely appreciate your continued trust and support as we build Health X into a technology lead capital-efficient health care platform with a clear objective of making health care more affordable, accessible, and trustworthy across India. Q1 FY '27 has been an encouraging start to the year for us. The initiatives that we have invested in during the previous year across RetailerShakti, SastaSundar geographical expansion, fulfillment infrastructure, technology and JITO are now beginning to translate into stronger revenue momentum while we continue to work towards improving the underlying economics of the business, building scale with a strong operating foundation. The strength of our platform today is reflected in the scale we have built. We currently have approximately 75,000 retail pharmacies with more than 50,000 SKUs sourced from over 1,000 vendors supported by more than 350 Healthbuddies and 3,500 employees. Importantly, more than 95% of our purchases are sourced directly from pharmaceutical companies without paying any purchase rights, while our purchase [indiscernible] remains below 1%. This gives us a strong sourcing and availability advantage as we continue to scale. RetailerShakti and SastaSundar both are driving growth now. Our revenue momentum has achieved meaningfully led by our 2 core platforms. RetailerShakti grew 48% Y-o-Y, continuing to remain our principal growth engine while SastaSundar grew 44% Y-o-Y, reflecting a strong B2C business. The quality of this growth is also increasing. Within RetailerShakti, 69.4% of business come from orders above 2,500 and 42.4% from orders above 5,000, indicating that retailers are increasingly consolidating [indiscernible] of their procurement requirements on our platform. This also eliminates the focus on certain customers because the sales are widespread in thousands of customers. Similarly, 69.2% of SastaSundar orders are above 1,000, highlighting a healthy consumer basket size and it also reflects that 30% of orders are going below 1,000. They have chosen the capability to serve even the smallest products. Together, this platform provides us with a strong base to deepen customer engagement and build a larger health care ecosystem. We are expanding beyond our existing market. Part of our core strategy is to replicate this model across geographies. Building on our existing West Bengal infrastructure, we have expanded into Orissa, Bihar, and Jharkhand, while strengthening our northern operation through Noida infrastructure. We already deployed sales team and established the logistics and fulfillment capacity required to penetrate these markets. The early response reinforce our confidence in this strategy. Importantly, our business is not dependent only on large metropolitan market. Approximately 67% of RetailerShakti business and 78% of SastaSundar business comes from Tier 2 and Tier 3 markets. This reinforce our philosophy of inclusive health care infrastructure in India with the Indian needs and we provide across geographies, across income level. This demonstrates the scalability of our model and the significant opportunity available in the end market where accessibility, affordability, reliability, availability remains important needs. On new initiative JITO, which is creating another growth opportunity, there is another strategic initiative at JITO private label through which we aim to make quality health care significantly more affordable by offering medicine at prices of up to 60% lower than leading branded alternatives. We see this as an opportunity to simultaneously improve affordability for customers and create an additional margin opportunity for the platform. At this stage, our focus remains on building the right distribution network, establishing customer acceptance, and scaling the business in a disciplined manner. We are investing ahead of scale while improving economics. On profitability, EBITDA stood at INR 14.9 crores during the quarter. As we continue to invest on team technology capabilities across procurement, fulfillment, inventory management and customer engagement, I would like to reiterate that almost all our revenue is contribution-margin positive revenue. We have consistently maintained that technology investment need to be made ahead of scale, but capital deployment must ultimately be supported by sound economics. Our objective is, therefore, to continue investing in capabilities that can provide productivity and customer experience while progressively moving the platform towards stronger profitability and capital efficiency. Our PAT stood at INR 2 crores, reflecting the improving underlying economics of the business. Technology and fulfillment are also key enablers. Technology remains center to how we intend to scale the platform. We are continuously strengthening our platform infrastructure and our existing network complemented by new capabilities in Guwahati, Lucknow and Udaipur. These facilities will allow us to penetrate deeper into the market. We have already entered and improved service level as volumes increase. Our fulfillment centers are becoming increasingly automatic and technology lead, helping us improve throughout inventory management and manpower productivity. At the same time, we remain focused on maintaining a capital-efficient model. Our working capital cycle is approximately 28 days, equivalent to roughly 8% of revenue, which provides us with a strong foundation to scale with proportionately increasing our working capital requirement. Hence, our company is in just infant stage, but this -- but I can say that the model is established as one of the highest growing company with most capital-efficient requirements. Now I speak about the outlook. Overall, we believe that FY '27 can be important year for Health X. This quarter is the best quarter in the history of the company. We are ahead of the composite sales with Flipkart partnership that in the end ultimately terminated. This quarter, we crossed the highest turnover, which we reported in -- during our Flipkart partnership era. And this year, we believe that it should be the best year in the history of Health X. The investment made during the previous year are now coming together. RetailerShakti is scaling strongly. SastaSundar is recovering. Our geography footprint is expanding. New fulfillment capabilities are coming online and JITO is basically building momentum. Our focus for the year is clear, grow the platform, deepen our presence across India, improve technology efficiency and progressively enhance profitability and capital efficiency. We are continuously working to launch our AI-monitored RetailAir products for our retailers, and we are scheduled to launch in this quarter. Hopefully, in the next quarter, we'll confirm the success of the project. We believe the combination of our customer network sourcing capabilities, technology platform and expanding infrastructure give us a strong foundation to build a large, scalable and sustainable health care platform over the coming years. With this, I will now request our CFO, Mr. Lokesh Agarwal, to take you through the detailed financial performance for the quarter ended June 2026. Mr. Lokesh Agarwal? Thank you.

Thank you, Mittalji. Good afternoon, everyone. So again, Health X delivered a strong top line momentum in Q1 FY '27 with revenue from operations growing more than 58% at year-on-year level to INR 440 crores and registering a growth of over 16% on a quarter-on-quarter basis from INR 378 crores. Gross profit increased by 64% year-on-year to INR 34 crores and 24% quarter-on-quarter, while gross margin improved to 7.8% from 7.3% in quarter 4 of FY '26. Operating profitability also improved sequentially with EBITDA loss narrowing to INR 15 crores from INR 20 crores in Q4 FY '26, and EBITDA margin improving to negative 3.4% from negative 5.5%. Despite this strong revenue growth, EBITDA remained slightly impacted by higher employee and other operating expenses. At PAT level, the company reported a profit of INR 2 crores in Q1 FY '27, marking a significant improvement from negative INR 13 crores loss in Q4 FY '26, although profitability remained below INR 26 crores PAT reported in Q1 FY '26. Overall, the quarter reflects a strong sequential operational improvement with revenue and gross profit accelerating and operating losses narrowing meaningfully. Going forward, the key focus remains on converting this strong momentum and revenue growth into sustainable EBITDA and PAT profitability through operating leverage and tighter cost monitoring and management. As we move forward, we expect the new geographical market, additional fulfillment infrastructure, increasing retail penetration, and SastaSundar's continued recovery and the gradual scaling of JITO to support further growth. Our focus remains on maintaining right balance between growth, margin improvement, and capital efficiency. With this, I would like to hand the floor back to the moderator for any question and answer from the prospective investors. Thank you.

[Operator Instructions] First question comes from the line of Sanchita Sood with RoboCapital.

Sir, my question was that for RetailerShakti specifically, what was the gross margin and EBITDA margin in Q1 FY '27?

So in Q1 FY '27, at RetailerShakti, we are maintaining a gross margin of around 7.8%, and EBITDA number, we are closer to breakeven and expect to make positive EBITDA in Q3 this financial year-end.

Okay. And sir, any revenue aspiration for FY '27 and FY '28?

I mean, as I said that we don't project on a yearly basis, but you can -- I can tell you what happened in May. So May, we ended with INR 150 crores plus revenue. So you -- looking to the growth, you can now extrapolate the revenue projection for this year and next year. May we ended with INR 150 crores subject to audit revenue, monthly ARR.

[Operator Instructions] Our next question comes from the line of Abhishek Singhal with Perpetuity Funds.

Sir, I first wanted to get some perspective around the gross margin potential of the business that we are building. And sir, if you take -- how is your private label/JITO panning out in terms of percentage of revenue, how that can ramp up and potential impact of that in gross margin? Because if you compare some of the other listed businesses, and look at the gross margin there, they have kind of started reporting almost double-digit gross margin at the consol level, 10%, 11%, 12% also. So I just want to get some perspective around how this gross margin ramps up for that. And subsequent to that, if you can provide some clarity around below gross margin, the current cost structures, how that pan out? And what kind of an operating leverage that we see in this business flowing through as a number the quarters roll by? So if you give some directional context around that, that would really help us understand the business slightly much better than we currently do on the reported numbers.

Thank you, Abhishek. This is very important question. We also look into these things. So if you see, the company is operating in the distribution business. If you see, the pharmacy distribution business at gross margin level, it has developed good business, both in terms of retail and both in terms of wholesale. The companies are making good profits and sufficient gross margin, I would say, at healthy margins. Now if you compare the SastaSundar with others, then -- if you compare at the level of -- because the gross margin is the function of volume, largely volume, how you procure, at what volume you procure. At this level, if you compare other companies, what they were doing, then you will find that the Health X performance is better than any of the competitors. That is number one. And number two is that the gross margin from AR is expanded by virtue of, one is by volume, second is by increasing your wallet share of the retailer, and third is by increasing the private label. So private label JITO ramp-up is -- I am pretty sure. So we launched in the last quarter of financial year '26, and we sold product of JITO around INR 25 lakhs, and this quarter, we sold around INR 79 lakhs. So though these are very minor numbers, but the growth is significant. And the gross margin is about 50%. So this JITO revenue ramp-up will increase the gross margin. And then since we are the digital business, so we increase the wallet share very significantly, like selling of devices, like selling of OTC products, like selling of health care products, preventive care products of the pharmacies, and thereby, we increased the gross margin. So the gross margin, if you see the industry level, that taken together of both B2B and B2C, we expect to pan out of around 12% going forward. And down the line, we don't look the EBITDA because the main problem of the industry is depreciation. If you see the B2B company, they keep the gross margin earned in depreciation. And the depreciation is a real cost. So we -- through digital distribution system, we want to eliminate the depreciation cost and interest cost. And states have come to the functions whereby the -- from the gross margin to the administrative cost, it goes directly to the shareholders' kitty. So similarly, our entire philosophy is that we should do the same kind of business as the industry practices are in a different manner, adding the digital technology capabilities, add the capital efficiency and add the distribution capability -- digital distribution capabilities, and we are done. So the capital efficiency along with the digital distribution, digital distribution will ensure the growth comes in a rapid accommodated manner and capital efficiency ensures that there is no depreciation and no interest cost. And from directly sales, it comes to the cash flow. So our focus is not EBITDA, but our focus is cash flow from the revenue. And I hope it is clear, Abhishek.

Got it, sir. Sir, just to expand a bit more on this gross margin perspective. If I remember correctly, you, right now, mentioned somewhere around INR 150 crores kind of a revenue for the month of July in your business, right? That is both RetailerShakti and Healthbuddy business put together, right?

Yes, yes, yes.

And sir -- and you mentioned that INR 70 lakh was more like a quarterly -- so what I want to understand is that you're talking about JITO at like a 50% kind of a gross margin business. So just from a leverage on this perspective, so for example, once your INR 150 crore top line goes to, say, INR 200 crores a month, in your view, what could the JITO contribution be in this or the private label or whatever, like, your own push be in that? And at 50 -- so essentially, what I'm trying to arrive at is that if, say, your JITO revenue becomes 2% of your monthly sales, it could almost add like a 100 basis point kind of a gross margin expansion, right? So how are you factoring that? And what kind of -- if I were to look at next 2, 3 years, as a percentage of sales, be it quarterly, monthly or an annual basis, this part of the business, can we entail like in the next 3 years, this could go to 5%, 6% of your top line? Some trajectory and direction around that will give us some perspective, sir.

No. I mean, your -- whatever you are mentioning, Abhishek, I fully agree with you. To that line, I think we are working upon that. That much I can say. But -- but I mean, it's very difficult to predict anything because we are evolving company. We are an emerging company, and we believe that there will be multi more new initiatives coming forward. But JITO, we are quite hopeful. And whatever figures you mentioned, we internally are working -- suggest that we will surpass that without mentioning any specific guidelines. So our internal working, our internal projections or internal business plan suggests that we will surpass whatever figures you mentioned in your narrative.

Okay. And sir, from a region perspective, can you please help -- give us some perspective? So if your current run rate in terms of revenue, how much is West Bengal contributing? How much are, say, for example, the other parts of India contributing? And the new regions, how are you seeing them ramp up? Some perspective around your geographical expansion and the current growth contributors as well from a region perspective, that will be really helpful.

I'm very happy to announce that the product has been proven across the market. So from West Bengal, this quarter, we expanded to Orissa, Jharkhand, Bihar and Chhattisgarh. From Noida, we expanded to Haryana and UP and Rajasthan. Assam, northeast, we are covering. So 30% is right now out of West Bengal. And all markets are giving very good response. And in terms of the growth, I must tell you that northeast is highest growing entity. This shows that this Tier 2, Tier 3 geographies and where -- as per IPM, if you see that Jharkhand is having the highest growth rate. This is happening because India is changing. This I firmly saying to my internal team that you look to the IPM data that 70 -- 80 crores new people who cater to us not taking medicine. You were talking about the JITO. JITO is no more a substitution. It is the requirement of those 80 crores people who are coming first time in the pharmacy store to buy the medicine. So I'm very much hopeful. For the geographies in Jharkhand, we are planning to set up a new warehouse in Ranchi, Patna and Chhattisgarh. So these geographies, we will ramp up this year and next year very, very aggressively. Looking to our success in Assam. And as far as Assam is concerned, that is growing very fast and rapidly. So the underpenetrated area has more scope of distribution and more share of the JITO.

[Operator Instructions] Our next question comes from the line of [ Disha ] with Sapphire Capital.

Sir, for RetailerShakti, you mentioned that we had a gross margin of 7.8% and EBITDA closer to breakeven. For the Healthbuddy platform, what is the current gross margin and the EBITDA margin level for this quarter?

So actually, the -- I think the SastaSundar we are building, I must tell you what is the reason behind SastaSundar. SastaSundar we are building is B2C business. So there are 2 ways of building B2C business. One is we go digitally. Digitally we have to expand in network, brand acquisition technology. And if you go physically, we have to spend in retail shops and sink money into depreciation. So the depreciation what have been shown is a good EBITDA, but retail shop will not come. The SastaSundar, as per our model, we spent around 15% of the building revenue. So suppose we build a INR 200 crores revenue in this year, then we have to invest around 15% of -- that means INR 30 crores. So if you see the current EBITDA loss of SastaSundar, Healthbuddy is around 90% loss is by virtue of technology buildup. That is number one. The technology buildup, I tell you the AI buildup is both for RetailerShakti and SastaSundar. As I suggested that we are -- naturally look for this RetailAir. And SastaSundar also, we are building AI technology. Second is building revenue because we don't open shop, so the entire building revenue comes in profit and loss account. My humble request is that, if you look Health X and if you're investing in Health X, don't look from EBITDA perspective. We are not an EBITDA positive company for next 2, 3 years, and we neither look the EBITDA from -- perspective. So EBITDA is not our priority. Our priority is building a very, very large company without looking hurriedly EBITDA is SastaSundar business. And we will build a solid business with a steady cash flow without giving any money in depreciation. Thank you.

So sir, these gross margins -- so -- okay. If not looking at the EBITDA margin, for the gross margin, I think you were at 9.2% this quarter. What will be the target for the entire year?

The entire will be 8% plus gross margin.

Sorry?

8% plus gross margin.

And what is our eventual target? Where do we want to take this number to, say, in next 2, 3 years?

As I said that it will run to 12%, from 8% to 12% if you look the industry. See, the gross margin is a function where we will be making the similar kind of gross margin when industry is working, because customers pricing and supply -- we are buying from the same company, we are supplying to the same customers. So gross margin differentiation is for the industry. If [indiscernible] will go by that infrastructure we built in technology and capital efficiency, that is the only 2 factors which will differentiate in terms of return on capital employed, in terms of revenue, and in terms of growth. So the gross margin will be the industry. The industry in B2B is operating around 12%. And B2C net of last mile retail expenses is also around 12% gross margin. So the gross margin is around 12%, and we should achieve that at that scale.

Okay, okay. And just the last thing from my side. So we've seen revenues increasing, sir, but quarter-on-quarter, we've seen a big decline in the other expenses. So what has led to that?

So other expenses are not declining. Percentage of revenue, that is declining. As the revenue increases, your fixed cost remains same. So if you see the percentage, that will decline. So that is a natural phenomena. As the scale goes, the fixed cost remains same and the expenses -- that is how the company achieves that profitability going forward.

[Operator Instructions] Our next question comes from the line of [ Rohit ] with ithoughtPMS.

Sir, first of all, sorry, I'm a bit new to your company. So please pardon some questions which may be very basic. So sir, if I were to look at your business right now, so based on your presentation, you're saying that in the last financial year, you did INR 155 crores in SastaSundar and about INR 1,125 crores in RetailerShakti. So -- I mean, so if you were to sort of double-click on both these businesses for a minute, so can you sort of -- so it seems from the outside that SastaSundar is a very different business from RetailerShakti in the sense that it has to -- the customer acquisition is much more difficult and then -- and so you have much more players with different focus. So can you maybe just help us understand, like, what is -- so if you were to step back and then both these businesses are different, so how are you trying to build it? First question is, is this different? Or is this understanding correct from your vantage point, these are different businesses, or is that not? So if you can maybe help us understand the nuances of these 2 businesses in a bit more detail.

Your question is right. I mean, these are not 2 different businesses. This business is -- one part is the procurement, second part is fulfillment, third part is technology, and fourth part is the large level of customers. So the first part, second part and third part, both RetailerShakti and SastaSundar are same. Now coming to B2C business that you addressed to, we have a very unique Healthbuddy model, which are also RetailerShakti customer type, they are also small pharmacies, so within the Healthbuddy model. And we spend around 15% of building the revenue. So we have estimated that if we say build a INR 2,000 crores SastaSundar company, then we spend 15% of that, INR 300 crores. And that INR 2,000 crores company, we can make 5% revenue acquisition, that is coming INR 100 crores per year. So by investing INR 300 crores, we make INR 100 crores per year. So that is 30% IRR on our investment. That is the pure mathematics of building SastaSundar business. Having said that, because that mathematics is coming only because we need to invest only in one vertical, that is the customer acquisition and building brand. And then from analyst point of view if you look, then you will see because it will take certain amount of time, then in next phase gives us the comfort. But I'm going to 2015, '16, when SastaSundar was over 80% business-centric, we just started RetailerShakti, then the same research analyst asked us that why are you building RetailerShakti, who will buy it without credit? So you have a solid business of SastaSundar, why don't you expand, why don't you focus? So you just wait for 1, 2, 3 years. Once you start seeing the figures coming, then you get comfort out of it.

No, sure, sir. I mean, your scale-up in RetailerShakti is quite impressive and...

No, no. SastaSundar-wise, impressive. SastaSundar business is sold -- you must appreciate that SastaSundar business was INR 500 crores per year business in the same company. We sold Flipkart for INR 800 crores. And our company built capital out of that. And out of the treasury income of that capital, we are investing. So we made good money out of SastaSundar, Nareshji. And right now also -- I mean, at any point of time, a business like SastaSundar, which has a contributing margin business can be sold by slightly expensive investment. So I mean, it's a very beautiful business. And for building a very large-scale business with large opportunities, you just need to look for futuristic performance rather than putting into scale and see the linear progression.

Right. Understood, sir. No, I mean -- so can you just maybe explain the Healthbuddy model? What is the difference here? So I mean, is it like...

The Healthbuddy model, we have explained in the slide also. The Healthbuddy model is that we don't directly deal with the customer. So we appoint franchise in each pin code who don't hold inventory. So they run the store without inventory. So they book the customers' order on their shop and whatever order is coming in our app and website at SastaSundar, those are transferred to our central warehouse and we deliver to that Healthbuddy. So the last mile delivery, the compliance part, the last mile customer engagement part is being handled by that Healthbuddy. So Healthbuddy is an independent franchisee partner who is a -- like, a retail store, like general retail store. So for us, the supply is all the retailers, be it Healthbuddy or a general retailer. So RetailerShakti supplies to general retailer, SastaSundar supplies to company-appointed franchisee partner named Healthbuddy. But overall, B2B business for us, procurement is single, warehousing fulfillment center is single, tech team is single, and management is single. And as I said, we need to spend only 15% of the revenue, while if you see the other companies which are building in this company because they have to do everything together for B2C business, they have to spend 5x more than SastaSundar building. So that kind of leverage, why should we leave that leverage of the...

So sir, when you -- so, let's say -- I'm sorry, maybe this is a very stupid question, but -- so, let's say, when you say the franchisees don't hold inventory, so how does the customer know that there is a franchisee? So that's money spending you do. So there is an app on which you will have your franchisees listed and the customer acquisition happens on your app and the fulfillment happens by you at the backend? And based on the location, et cetera, such as tech, the nearest person will then get fulfilled. Is that how it is?

Yes, yes. So this is a hybrid model, whereby the -- so for Healthbuddy starts, then first thing is he has an opening of his shop. So opening, he calls all his friends, all his relatives, so, say, together for tea, some of the party. And from there, he starts selling 20 prescriptions to his friend. And then the health camp in his area and he gains another 20 customers. Then we build a customer engagement program in his area, another 20 Healthbuddies and 60 customers. So any tech referral can build 100 customers. And 100 customers means 3 lakhs per year. So I mean this kind of data, so there is a twin effort. One is effort from Healthbuddy and second is help from our digital capabilities and on-cloud application. So the Healthbuddy health center in that particular area that gives comfort and human touch to the customer also. So that is how it helps.

Got it. Understood. And sir, this 7%, 8% of your revenue which comes from finance is basically your treasury income?

Yes, it is treasury income.

Understood. Okay. Okay. So sir, I think, at this point of time, that's all from my side. I'll probably read more and come back for more questions. Maybe I'll reach out to the IR and set up a call.

[Operator Instructions] Our next question comes from the line of Amit Mehendale with RoboCapital.

Sir, my first question is again on the burn for SastaSundar. I think we plan to -- if I remember correctly, we had spent about INR 50 crores, and we wanted to spend another INR 100 crores in FY '27 and '28. I'm just wanting to kind of discuss a little bit on the rationale of spending INR 40 crores, INR 50 crores. My understanding there is that, we don't require too much money for acquiring customers because it's largely a B2B2C model and acquiring Healthbuddy is not very expensive. And from a customer side, the customer comes to us largely for discount because we offer, say, 20%, 25% discount on -- so that INR 50 crores that we are spending, what exactly does it do for the customer?

No. The large part is that the -- some part of the money goes on building SastaSundar brand. So we are advertising for SastaSundar apps in our territories so that SastaSundar brand is built. So one part is that. And second part is the tech team salary. So tech, we are building futuristically. As I said, RetailerShakti is building a software called RetailAir, and we are building AI tool for customers based upon home-seeing artificial intelligence tools. So these 2 salaries are in the profit and loss account. And then, see, the expansion part is also not very easy. As you have seen in our presentation, we have given that we have started expanding in new territories like Bihar, Jharkhand, Odisha. So these, we don't have an acquisition cost. We are not acquiring an existing revenue. We are getting revenue from our own resources. So we have to put sales team on the ground. So their expenses are debited in the new geographies like -- these geographies we have taken, we are building new warehouse in Noida, Guwahati, Lucknow, Udaipur. Everywhere require team. Everywhere require effort. So this 47% of those which will come, there are 2 ways, either we pay a huge premium to outsiders and buy out, then there will be capital allocation and the ROE will be compromised, but the analysts will be very happy to see the good amount of profit. But the capital is gone. And if I say I bid at 10% of the cost, but the 10% cost will be debited into profit and loss account. And that you will see in the accounting as a burn. So if you look from my company, my company will look from the capital efficiency model that these burnings are, of course, generating revenue. See, the differentiation part of our company that we are a company which did not acquire any revenue, rather sold the revenue, and we bought back the shares. We sold the revenue, built our capital base and out of that treasury income building business, we bought the capital rather than expanded and diluted the capital. So these are the 2 differences, not a single penny of any single revenue. Rather, we sold 90% of revenue to Flipkart and then again building. And we still have crossed the largest quarter in this quarter. So these are the key differentiation. So these are the magic of capital efficiency, which you can realize only after 4, 5 years once you see that how the capital efficiency measures in terms of shareholders' wealth.

Right, sir. I think definitely, I mean, the -- it is definitely capital efficient. My -- just the point was that the branding or the technology cost that we're spending on AI, at least currently, the customer doesn't want -- I think my understanding is that customer comes to us for discounts. But anyway, do you have numbers for how much we are spending for technology and how much we are spending for branding?

That is -- no, I myself asked these questions to -- I was an analyst when I -- present company. And I was fool to ask these things to Infosys call that why are you investing in AI? I mean, these questions are normal, but you look -- you have to look the future and we are looking the future. And not today, but once -- after 3 years, all of a sudden, you will find that AI -- the customer needs AI, the customer needs counseling. And it's not the customer needs AI, customer does not AI. Customer needs counseling. The retailers are not required to adopt the AI. Retailers are required to minimize the inventory and that minimization can be done by the automation of AI. Probably, our retailer tool, they will not understand that this is an AI tool. But they will definitely understand that it decreases their inventory level, inventory investment from 40 days to 4 days. Think about a retailer who does not need credit by automating retailers -- everything is automatically connected with RetailerShakti, the order process is automatically -- and he has to invest INR 10 lakh in inventory, that comes to INR 2 lakh in the month by adopting the new software. So this kind of technology is not about adoption of AI, but it is adoption of a new specialty and it automatically happens. All of a sudden, it happens. It happens in UPI in India, it happens in your capital markets in 2020 adoption. So adoption becomes easy when consumers see the value of that in their daily life.