Hinduja Global Solutions Limited (HGS) Earnings Call Transcript & Summary

Good evening. Ladies and gentlemen, a warm welcome to Q1 FY '26 earnings call of Hinduja Global Solutions Limited. From the senior management, we have with us today Mr. Venkatesh Korla, Global Chief Executive Officer; Mr. Vynsley Fernandes, Whole-Time Director, HGS and CEO of NXTDIGITAL Media Business; Mr. Mahesh Kumar, Global Chief Financial Officer. [Operator Instructions] Please note that this conference is being recorded. I now hand over the conference to Mr. Darshan Mankad from AD Factors PR. Thank you, and over to you, sir.

Thank you, Pari. Good evening, everyone. Welcome to the Hinduja Global Solutions Limited earnings call for the first quarter ended June 30, 2025. As a reminder, some of the commentary you hear today may contain forward-looking statements. Such statements are based on current expectations and assumptions and are, therefore, subject to risks and uncertainties. Should a call drop occur, we'll ensure it is reconnected as soon as possible. Thank you for your patience. I will now hand over the call to Venkatesh, sir, for the opening remarks. Over to you, sir.

Thank you. Good afternoon, everyone. Hope all of you are doing well. On behalf of the HGS team, I warmly thank you for joining us on today's earnings call. We truly appreciate your time and continued support. Please note that our earnings call presentation has been uploaded to the stock exchange and on our website. A quick snapshot of our Q1 performance. We achieved a total income of INR 1,187.3 crores and an operating revenue of INR 1,056.2 crores in the quarter. EBITDA stood at INR 159.7 crores with strong margins of 13.5%, an increase of 169 basis points year-over-year. While the number shows a mixed performance, it presents steady progress for us. We believe it is setting a solid foundation for sustainable growth in the year. Our performance this quarter was shaped by ongoing macroeconomic volatility and extended client sales cycles alongside sector seasonality and customer ramp downs. We have made a conscious decision to prioritize margin expansion over top line growth given the changes in the market, and this focus is evident in our improved EBITDA margins in Q1. The improvement was boosted by the changing mix in revenue led by Digital Services and increasing deployment of internally developed IP in the Agentic AI platform called HGS Agent X. We have a robust sales pipeline, particularly in digital services, underpinning our optimism for future growth. The current order pipeline in our Americas region is upwards of 55% in the Digital Services segment. We have over 1,000 multinational customers in our BPM and HRO businesses. We are starting to cross-sell to and expand our technology services, our digital services into these customers. In addition, we have added quite a few new logos for Digital Services in the last 2 quarters. And these Digital Services customers typically start small and grow into larger accounts from a revenue footprint standpoint. This shift will change the quality of our revenue profile, leading to higher margin growth. We expect to see these impacts in the fourth quarter of this year. We are planning to take a portion of this enhanced profitability and invest in aggressively reskilling our people and developing solutions that will drive future revenues in the digital services space as we transform our organization. I'll be on Slide 7 now, orchestrating the future of HGS. The world around us, as you all know, is further evolving into Agentic AI-based solutions, where we are focused on systems of execution. What we see is that there's going to be a shift from traditional BPO largely centered on human-intensive services to AI-enabled BPM services, which are much more focused on cost savings today. It's about reinventing our systems of execution where AI acts not just as a bolt-on technology, but as a transformative bridge, seamlessly embedded within the operations, working hand-in-hand with humans. Unlike incremental technology adoption, a robust AI strategy incorporates AI agents that scale effectively and align closely with the client cultures and business goals. This augmented approach enhances efficiency, quality and agility, driving innovation beyond mere automation. The AI-enabled BPM model is redefining outsourcing, turning it into a strategic partnership that leverages intelligent augmentation rather than just replacing human effort. What this means from an implication to the buyer's perspective? What we are noticing is that the buyers are starting to seek providers with a solid AI offering on their hand. The buyers are looking for service providers who are focused on outcome-driven customer experience. We call it intelligent CX, that is focused on growth, retention, and digital enablement. We want service providers who have vertical software solutions or expertise, have a credible partnership ecosystem and a clear road map of how they're going to bring automation to help their businesses. They are starting on the data and AI readiness location, focused on journey redesign, managing risk, compliance and transformation of governance. They're also looking for companies who can help easily implement AI assistance to help them deliver frictionless experiences, both to their customers and their employees. So given this, moving to Slide 9 now, our new ethos have changed. We as a company are reinventing ourselves to be an intelligent experiences company. Our vision is to be the most trusted partner for clients, driving global business transformation to create intelligent experiences. The HGS team leadership presented a 5-year business transformation plan to the Board recently. It's been approved, and it largely focuses on the future direction of the company and the approach to achieving that vision. At HGS, our ambition is to co-create frictionless intelligent experiences, where we will help businesses reinvent themselves for the AI-centered future by reimagining their processes and operations through intelligent experience-rich workflows, backed by deep understanding of client processes, optimizing workflows and embracing complexity. Our reimagined customer journeys empower clients to confidentially and confidently achieve productivity gains while minimizing risks in their AI investments. Today's buyers are looking for partners with clear AI road maps and credible ecosystem partnerships. Our strategy focuses on these outcome-driven and empathetic intelligent experiences with solutions tailored to specific industry verticals rather than generic outsourcing models. In line with this, we aspire to be the most trusted partner for our clients driving business transformation. Basically, we'll partner with businesses to co-create frictionless experiences that position our clients and us for long-term success in an AI-centric world. As part of this business plan that has been presented to the Board and approved, the road ahead has 6 pillars of focus. The tenets of our business transformation plan are in these areas, an infused strategic focus and intensified strategic focus to change the revenue mix towards more digital and applied AI-enabled operations. This strategic focus will also drive higher margins through enhanced automation, improved efficiency, and value-added services, positioning us for sustainable profitability. Our sector focus will be sharpened to target banking, financial services and insurance vertical; retail and consumer products and goods vertical; health care vertical; and as we have a significant presence in public sector in the U.K., we'll continue to maintain that with a special emphasis on mid-market enterprises. And this targeted approach leverages our expertise, and growth potential and client impact are the strongest. We do have a significant presence already in BFSI, retail and consumer products and groups, and U.K. public sector. We have historically had presence in health care, and we will continue to grow that. We are evolving our sales model into a consultative client-centric sales approach. This will enable a diversified nonlinear growth engine, fostering deeper relationships and unlocking new revenue streams beyond traditional service contracts. We are investing in vertical Process-as-a-Service solution in key priorities areas. By building tailored PaaS offerings, we can deliver scalable industry-specific solutions that drive client digital transformation and differentiate us in the marketplace, primarily centered around AI agents. We remain committed to strategic acquisitions and partnerships that enhance our capabilities in AI, domain expertise and sectoral expertise and new market entry accelerating our growth trajectory and competitive positioning. Our people are our greatest asset. We are aggressively reskilling talent to build deep AI proficiency, where we believe the domain knowledge, vertical expertise and knowledge of processes becomes very important as we mix it with technology, ensuring we stay ahead in the rapidly evolving industry landscape. These initiatives combined position us strongly for sustainable growth and long-term value creation. Now as part of this, as I mentioned before, we have created an agentic AI enterprise platform called Agent X. We have invested in this over the last few years, and we are starting to see the results out of it. As you are all aware, the traditional voice and non-voice services are undergoing a change with advancements in technology and AI in the market. We anticipate revenues from this segment to reduce gradually with higher contribution from digital and applied AI-enabled operations. This shift will enable us to optimize our workforce and improve margins through greater efficiency and automation. One of the key investments we have made is this Agent X platform. It's a great example of how we are recasting our operational model by leveraging technology and human expertise. The platform includes around 12-plus modules such as knowledge assistant, voice biometrics, speech AI, AI interactive chat, et cetera, that can positively impact outcomes in 3 areas, especially in consumer experience, employee experience and business process automation, all through the use of AI technology. Agent X is doing very well. Several of our key clients are using it and are happy with it. Currently, we have deployed it across 20 BPM clients across North America, covering approximately 5,000 active users. We have seen a 12% growth quarter-on-quarter in number of active users of Agent X. We are in the process of deploying it globally across the U.K. and Philippines markets, or Asia Pac markets as well. On the average, Agent X users see around 40% training optimization, 25% productivity gains and 30% reduced costs and an 89% reduction in employee attrition, which, as we all know, is one of the largest factors in managing profitability in the operating model that we are in, while businesses see at least 8% CSAT or NPS improvement and an 87% cross-selling gains in lifetime value for their consumers. So this is pretty exciting as we look to the future, and we are going to see significant ROI and benefits, both for our customers and for our own business. I'll now hand over to Vyns to take us through the highlights of the Media business. Thank you.

Thank you, Venk, and good afternoon, everyone, and thank you for joining us on this Friday afternoon. Shilpa others, I'm assuming you all can hear my voice clearly, before I proceed.

Yes, sir, you're audible.

Okay. Great. Thank you so much. I'm on Slide 14, which is the environment and industry. And like always, I thought I'd provide some context to one of the key pillars of the Media business of the Hinduja Group, which is our Broadband business. As I've shared with you all in the last several quarters, our company and our organization is focusing more and more on the broadband, which is clearly a sunrise sector for the country and where there's tremendous growth opportunities. If you recall in the last investor call, it mentioned how the subscriber base, which is today about 40 million in India is expected to more than double in the next 3 to 5 years. And that is reflected, in fact, on the graphic on the left-hand side on Slide 14, where the wired and wireless home Internet market is expected to touch $16.5 billion in just 5 years. So that is really something else. And we believe that we are right at the cusp of that growth trajectory across India. And as I walk you through it, you will get a better sense. Similarly, the other story that is doing the rounds and is something, again, that is very close to our heart at the Hinduja Group and of course, the Media business is the 6 lakh villages to get high-speed fiber-based broadband in the next 3 years. If you recall, way back in 2015, it was nearly a decade -- exactly a decade ago, it was the vision of the Hinduja Group that India needs to provide -- we need to provide connectivity and need to provide digital television to the under-connected and underserved markets, and that's why we launched our Headend-in-the-Sky or HITS platform in 2015, which today covers over 4,500 pin codes and our service is available in places like the Andaman and Nicobar Islands, far east corners of Arunachal Pradesh, all the way up north to the fringes of the country as well. And that's been something which we hope to duplicate and replicate in our Broadband business over the next couple of years. Going to the next slide, this reflects exactly the philosophy that I was sharing with you. And this is, again, not just HGS's philosophy, but this is the entire Hinduja Group. We look at opportunities literally across the country. And the state of Uttar Pradesh is one such state that lends itself and that has the passion to be able to take the vision further. And the Media business is looking at the state of Uttar Pradesh, not just for digital television, but more to look at providing connectivity to connect the underserved and unconnected territories or regions or districts in the state. We hope to have a plan in place shortly, and we will be rolling out a proof of concept. Just to share a bit with you in terms of what is it that we're doing so that you all get a better sense. Our focus is not just on providing wired broadband. It's not just providing a wire to people's home and they get access to connectivity. The idea is how do we leverage that connectivity to actually take forward the vision of the country in being digitally inclusive in delivering the digital inclusion mission of the government of India. And we plan to layer on top of that services like OTT is already available, as you know from us. We have just launched our IPTV service, which is Internet protocol television. To simplify it, it is nothing but television using a simple broadband connection. You have the entire experience, the entire user experience like you had a normal television set or a normal cable television service, but through the Internet service. And on top of that, we're looking to layer high-quality education or ed tech and, of course, other services like fintech and access to e-governance as well. We are definitely looking to roll out a proof of concept shortly, and we will definitely look to give you a better update in the next quarter investor call as well. Moving on to Slide 16. This is a reflection of what we've done in this quarter. I want to start with the right-hand side lower quadrant because this is again something that I mentioned that we were working on in the last investor call. We are really pleased to let you know that we've hired key personnel across a multitude of functions in broadband, right from business development and regional sales to, of course, developing the product, business intelligence and analytics, and all of that has really helped us build an organization, not just for today, but for the future because with the government and everyone with the industry recognizing broadband as a sunrise sector, emerging technologies, we want to be right at the helm of that. And our focus has been building a performance-driven team right across the country. In terms of our growth, which is the upper left quadrant on Slide 16, we have been focusing on growing our base in key markets wherever there are better ARPUs. As I mentioned and as you know, our philosophy, we look to connect markets that are in Tier 2 and Tier 3 and rural markets because those are aspirational markets which have lower entry barriers, have much higher aspirations towards quality of service, and those are the markets that we've been looking at. Equally important, we've signed on some very prestigious logos at the enterprise business that we have, CelerityX. Just over a year ago, a little more than that, I shared with the investor call that CelerityX was going to be a flagship brand or division of our business. We're very happy that quarter 1 has seen a rapid trajectory where CelerityX has delivered over 1,000 links, 1,000 connectivity points. And some of these are in the most difficult challenging geographical terrains. I'm talking about the Andaman and Nicobar Islands. I'm talking about Sikkim. And CelerityX has done it without and has been recognized by those partners, by those customers for the quality of service, and we're looking to accelerate that going forward. In terms of process improvements and controls, we have put in a stronger project team as it is to support the CelerityX growth, as you can see. And from a profitability perspective, we are continuing to focus on cost reductions because we believe any focus on cost reductions will help us be able to be more competitive in the future. We may not need it today in broadband, but we definitely will need it in the future and we will then use it as a leverage tool to fight off competition when pricing becomes a parameter for competition. We're also looking to continue to focus on profitable businesses. So that is something that we've never shied away from of either upgrading partners that are low ARPU as an average revenue per user or unprofitable and we've looked to ensure that we build value. And that is reflected, in fact, on the next slide. If you go to Slide 17, we've maintained a very strong ARPU of INR 177 in the Broadband business, using the quality of service as a differentiator. And that's exactly what I was saying, Tier 2 and Tier 3 markets and rural markets are very happy to pay a better price as long as the quality of service is assured. And that is something that we've continued to leverage. Digital Television, which has been our flagship business and will continue to remain a strong a strong product in our portfolio, is facing challenge and we're seeing some level of erosion. And that is mainly because, as you know, a lot of people are moving towards online services and digital services. But the good thing is NXTDIGITAL has maintained its ARPUs. In fact, it's taken it up from INR 117 last year at this time to INR 123. And that's a direct result of the innovative packaging and pricing that we've been working on. Very interestingly, the Digital Television business, we've been able to augment it one step. As customers look to move to pure-play broadband or move to online services, we aren't actually losing a Digital Television customer, we're gaining an IPTV customer. So the customer experiences the same number of television channels. In fact, we have about 600-plus television channels on IPTV. So we're converting customers that would normally cut the cord. We're converting them into an online broadband customer and giving them the same television experience through IPTV that they would have had on our HITS or cable TV service. So that is something that we're continuing to push, and we will see traction happening in this quarter and going forward. Slide 18 is something that I thought is very relevant to sharing with you in terms of the contribution of building a value sustainable business, which is not just value creation, but also value accretion segments. So if you look at the contribution of our organic business, which drives the value creation, over the last 4 quarters, we've been able to -- or if you look at the previous year, literally, we've been able to take it up to 32% contribution in this quarter itself. And that becomes important as we look to build value for the organization and value for our shareholders. This becomes a very, very critical aspect. So this is something that we're continuing to do, and I thought is important. At the same time, CelerityX, which when we just launched probably in the last quarter of FY '24, contributed about 1% to the revenues. CelerityX on its own contributes about 5% today. We're looking to accelerate that at an exponential growth level. So we hope by the end of this fiscal, the contribution will be well into double digits as we look to grow the business in CelerityX as well. Overall, one critical thing, as the Hinduja Group philosophy, we continue to build strong partnership models. I think that is a very important thing. We don't look at cutting costs. We don't look at cutting corners, I apologize. We look at cutting costs, but we also look at profitability through partnerships. Our partners have been with us for decades, and the idea is to have a sustainable model where our partners work with us to grow the Broadband segment like we grew the Digital Television segment over the last couple of decades. We now are looking forward to growing broadband and continuing to be a serious player in the market in the top 5 players across the country. With that, thank you very much for listening patiently. I'm going to hand over to Mahesh, my senior colleague, for the financial update. Mahesh, over to you, please.

Thanks, Vyns. Hope I'm loud and clear.

Loud and clear, Mahesh.

Thank you. Good afternoon, everyone. Hope all of you are doing great. Thanks to all of you for taking time and joining us today. So let me walk you through the financial highlights for the quarter. I'm moving on to Slide #20. As mentioned by Venk earlier, revenue growth was moderated by seasonal softness in key verticals and customer ramp down. Consequently, on a sequential basis, revenue has dropped to INR 1,056 crores in the current quarter from INR 1,161 crores as of Q4 FY '25. And also, as we have outlined in our segment analysis of our publication page, there is drop in both of our BPM and Media businesses, sequentially and on a year-on-year basis. However, our underlying fundamentals remain strong, and we continue to see healthy traction across our service line offerings. In the current quarter, depreciation expenses are at INR 128 crores as compared to INR 121 crores in Q4 FY '25. On a year-on-year basis, depreciation has dropped from INR 131.2 crores to INR 128.3 crores. PBT for the quarter is at negative INR 26.5 crores as compared to a positive INR 103.5 crores in Q4 FY '25. And on a year-on-year basis, it was negative INR 44.2 crores in Q1 FY '25, which again aligns to what we have been indicated earlier, which is the impact of the cyclicity and the customer ramp downs, which is showing up in the trend as well. Moving on, PAT from continuing operations stood at negative INR 46.3 crores as compared to negative INR 1.7 crores in Q4 '25 and negative INR 44.2 crores in FY '25. So let me just correct that PAT from continuing operations for the current quarter is at INR 46.3 crores. And taxes for the quarter are at INR 19.9 crores as against INR 103.5 crores in Q4 FY '25. Q4 taxes were higher on account of increase in deferred taxes, which were taken on a prudent basis, and this was explained in the last quarter call. And on a year-on-year basis, we are fairly consistent. So during the quarter, we have profits from discontinued operations of around INR 57.5 crores net of taxes. And as mentioned in our notes to publication page, through transfer and assignment agreement, group has assigned a portion of its third-party liability with [ recourse ] for a consideration of USD 10 million, which is approximately INR 85.73 crores and recognized a gain of USD 7.93 million, which is approximately INR 67.7 crores. This assigned liability relates to a period prior to the sale of Healthcare Services business, which was consummated on January 5, 2022, and has been clearly identifiable to the businesses being discontinued. And in line with that, it's disclosed as discontinued operations, including net of taxes. So taking both discontinued and continuing operations, total PAT for the quarter is at INR 11.2 crores positive as against INR 1.7 crores negative for the prior quarter. Just as a point of highlight, operating margins, EBITDA though on a sequential basis have moderated. However, we have expansion of 169 basis points on a year-on-year basis, as mentioned by Vent as well, which reflects our continued focus on driving operational efficiencies. Moving on to balance sheet overview, which is on Slide 21. We are maintaining a strong balance sheet with a total net worth of around INR 7,980 crores and with a debt of around INR 1,186 crores, which again reflects a healthy gearing ratios. Net cash and treasury surplus is around INR 5,140 crores. Moving on to Slide #22, which talks about revenue composition. The chart on the left side shows the revenue split by source, which shows that CX operations constitutes 54% of our total revenue, whereas the digital and media services accounts for 46%. If you look at the chart on the right side, which gives the split by vertical, which shows that tech, media and telecom continues to be our largest vertical accounting for around 53% of total revenue, with BFSI and consumer goods and retail accounting for 19% each. Public sector revenue remains stable, primarily from U.K. and Canada, which are mainly consistent with prior quarters as well. Moving on to the next slide, Slide #23, which shows the revenue split by origination and revenue split by locations. The chart on the left side talks about revenue split by origination. For the quarter, India accounted for around 38% of the total revenue, following with U.S. with 31%, U.K. at 11%; and between Canada, Australia and others adding up to 20%. And the chart on the right side gives revenue split by diverse location; 43% of the total delivery was accounted from India. Between U.S. and Canada, it's at 30%, Philippines accounting for 13%, while U.K. and others accounts for 14%. And as mentioned earlier, with increased focus on offshoring, delivery share of India and Philippines have increased by approximately 5% as we look at compared to prior quarters, and we'll be continuing the same momentum. Moving on to Slide #24. The left side bar graph shows the client concentration and which shows a well-diversified portfolio of our customer base to minimize any single customer risk. So our top customer accounts for nearly 8% of the total revenue and whereas the top 5 customers' accounts for 22% with top 10 customers representing around 30%. DSO for Q1 FY '26 is at 69 days, grows by 9 days on a year-on-year basis. And I think this was more of a timing issue. As of date, I think there are no past due collections from our customers, and we have collected them. Looking ahead, we remain confident in our growth strategy and are actively investing in digital transformations, automations and client-centric innovation to drive long-term value, as mentioned by earlier in the presentation. With that, I'm going to hand it over back to the moderator.

The first question is from the line of from Nakul Dev from ND Investments.

I just have a couple of questions. Firstly, given the increasing importance of AI across your offerings, how do you evaluate build versus partner versus acquire when expanding your AI capabilities? Second question is Media segment, I had a look, and I think it was a loss of around INR 38.8 crores in Q1 versus profit of INR 30.5 crores in the previous quarter. What caused this drop? And what is the outlook for this vertical? And lastly, the BPM segment also witnessed a drop off in the revenue and EBIT. Was this driven by client ramp downs, macro softness or seasonality? Because the Q1 performance and macro environment, when you look at that, what is your outlook for the FY '26 revenue growth and margins? These are my questions.

Okay. I'll take the first question. You have 3 questions in there. So we'll take one by one. I'll take the first question related to the partnership versus -- build versus buy for the AI-related investments. So we're going to be very strategic about it. So there are core components of AI, which will orchestrate the actual experience itself, where we will build our own intellectual property, and we have been building that. In addition, what we are doing is we are building the orchestration capability, which brings orchestration across multiple platforms that could be either built internally or partnered with externally. There will be non-core capabilities in the AI, which is more around, for example, voice biometrics, where we would partner with external organizations and then bring them together. That is the basic philosophy we are following around this area because the speed to market is important. That's why we are taking a strategic approach and a very careful view of what can be built where it gives us a competitive advantage in the long run versus things that can add an immediate advantage where we would partner with an ecosystem player. The second one related to the BPM was around changes in revenue profile between Q4 and Q1. It was because of, number one, we typically see Q1, there is a change in the revenue profile, and it builds up to the end of the financial year. If you compare our numbers to Q1 of FY '25 to the current quarter, Q1 of FY '26, it's almost similar. Yes, there has been a slight drop. And that is due to there is a few customers who have had a ramp down because they were trying to -- they had too much vendor concentration on their end, and they were trying to distribute the business to other vendors. And they wanted to improve their vendor mix to mitigate risk on their own end. We have not lost those customers. We have, in fact, gained business in the technology services space with those customers, and we'll continue to see that. And that you'll start seeing that impact in the improved margin profile itself. Vyns, I'll hand it off to you or Rajiv -- actually, Rajiv, to answer the question related to the Media business.

Yes. Rajiv, do you want to talk about the financials first before I talk about the outlook?

Sure, sure. Thank you. Yes. So the revenues, the drop which you see is mainly on account of two, three things. See, what has happened, we have the marketing deals with the broadcasters. So deals worth INR 30 crores could not be closed in Q1. So the work has been completed. However, because of the lack of confirmation from the broadcaster side, we could not build them. So that's where the biggest piece of this drop in the revenue is INR 30 crores. And then in Q4, we had excess provision of around INR 15 crores -- so because of which the revenues look higher in Q4. So that's where these are the two big ones. And there is a slight drop in the revenue, around INR 7 crores, INR 8 crores in our cable sector, as Vyns mentioned, that we are facing headwinds there, and there is a challenging environment. So these are basically the two key factors in the revenue. In terms of cost, the broadcaster cost, typically, in the month of April and May, by virtue of the TRA regulation, the broadcasters increase the cost. However, there is a lag when we increase the price on the ground. So the price increase is likely to happen in September. We have already made the plans. So it will get compensated when we increase the price. So that's sort of a timing issue. And then there is a little bit of INR 7 crores worth of expenses, which are like inflation driven, which are like HR costs and other administrative expenses. So that's how this number is looking both EBITDA and revenue down versus last quarter. In terms of like Vyns will narrate, but however, I can say like we are focusing on the organic growth in enterprise business where there are higher margins. So definitely, the outlook looks bright for us. And like typically, it happens in Q1. And therefore, we expect a better performance in the coming quarter. Vyns?

Yes, sure. So Nakul, I think your question was spot on. So I'll just add a bit to what Rajiv Bhargava mentioned. The marketing deals with the broadcasters, these are essentially seasonal. So the marketing work has been carried out, but the billing could not be done because of the confirmation. So it's seasonal and it gets addressed in the upcoming quarters. And this is something we've even seen in last fiscal. If you look at it, last fiscal, it started from INR 307 crores and kind of went up to INR 357 crores in Q4. I'm talking about revenue from operations. Similarly, you'll see that kind of similar trend happening in this fiscal as well. Coming to the Media business, which has taken a drop. That is the fundamental issue, which is an INR 8 crore drop in revenues, that is something that is a tailwind -- sorry, is a headwind that we are facing on the digital television side of the business, as Rajiv pointed out, content costs have gone up, but the revenue has been exactly what it was last year. So therefore, our costs have increased. That correction, again, will be adjusted, as Rajiv pointed out, as we go in for the price hike. But from your relevant perspective of what is the outlook, the outlook is specifically focused on broadband. We believe and we are completely -- rather than putting up our hands and saying things are difficult on the media side, absolutely, things are difficult on the DTV side, but broadband is the Sunrise sector and the losses of DTV that we may face as a result of headwinds is where we're looking to compensate it from the broadband side of the business. So much so you may have noticed that there is a slight change, in fact, increase in manpower expenses in the business. that manpower expenses is directly linked to hiring an entire universe of people across the Broadband business as we look to expand. CelerityX, as I mentioned in my presentation, is a great example. They've delivered 1,000 links in just 45 days. We're looking to accelerate that as well. And obviously, we need a strong back end to support a strong sales front end. So the strong sales front end, which started firing the engine in the first quarter, you'll start to see major traction happening in these quarters. And any challenges that we face from the DTV business will get compensated significantly by the Broadband business because we're looking to penetrate markets where entry barriers are much lower, Tier 2, Tier 3 and Tier 4 markets and the corporate segment where deals have much better ARPUs. I hope we were able to answer you, Nakul, on that question.

Yes, I've got answers for the questions that I've asked.

The next question is from the line of Harshil Patil, an individual investor.

So I have 2 questions generally. Since the company operates in digital ops and derives the 60% pipeline from the Americas, how are the pricing trend and deal velocity going to evolve in that region?

I can take the question. So the area of digital operations, especially with the advent of agent AI is evolving. The market is still not -- at least the consumers are still not settled yet where we can give a clear guidance of how pricing is going to evolve. At this point, we are seeing more and more transaction-based pricing or outcome-based pricing, wherein you develop software, you combine it with both software process management and talent and charge as a single price per transactional outcome that you deliver to the customer. The demand for it is starting to grow. The expectations are there, but not all enterprises have yet figured out. So what we are seeing is the initial project sizes or smaller because mostly they are being in pilot space right now. But as we finish the pilots and we're showing success to the customers, we are starting to see higher demand and they turn into larger deals. In general, the revenue footprint of an automation-based solution is typically smaller with a much higher margin compared to a completely manpower-driven solution, which is higher revenue footprint with a lower margin profile. I hope I answered your question.

Yes. And what is the share of the recent wins can be attributed to the Agent X or the AI-led verticals offering? Are there any client testimonials or case studies? Could you share that, please?

So we have had multiple case studies, and they're probably visible on our website. I would refer you to go look at the case study. But as a high level, across multiple customers, we have been able to use Agent X as a way to, for example, manage fraud detection and anomaly detection for anti-money laundering for a banking customer. We have been able to use Agent X as a base underlying agent AI platform to essentially read out disclosures and meet compliance needs of a major credit card organization. across over 1,500 agents. So when the agent and the consumer have a conversation, they cross-sell a new service or a new product, you need to provide a lot of financial disclosures. And we've been able to use the agentic AI to listen into the conversation, figure out what disclosures have to be made, and deliver those disclosures to the consumer. We have been able to use Agent X to support a set of agents across the major telecom organization, where the cross-selling was suggested to the human agent and the next best action to take so that it helps them deliver a higher quality of cross-selling. These are all case studies that will be available on our website. You should be able to take a look at it. At a high level, these are some examples.

The next question is from the line of Grisha Shah, an individual investor.

Maybe you want to circle back to Grisha. We've lost her probably. [Operator Instructions] the next question is from the line of Isak, an individual investor.

I had a few questions on the financials. So the EBITDA includes the interest income, right, from our treasury.

Yes, we can hear you. Mahesh, would you like to take that?

Yes. I'll just repeat myself. The EBITDA includes the interest income from treasury, right?

It includes the other income portion, that's right.

So what are the operating profit then? And can you give the segment-wise operating margin?