Mastek Limited (MASTEK) Earnings Call Transcript & Summary

Once again, a very good evening, ladies and gentlemen. Thank you so much for taking the time out and joining us here. My name is Himanshi Chatwani, and it gives me immense pleasure to welcome each and every one of you to the Investors Day. Well, firstly, before we begin, I'm sure that we are quite glad to now be in the physical space and actually see each other and hear each other well. So just as we begin this event, may I request you to turn to the person sitting to the right or the left and just shake hands with the person. And also if you like the person who's sitting next to you give them a smile as well when you shake their hand. Wonderful. Ladies and gentlemen, thank you once again for joining us here. Today, Mastek leaders would be sharing insights on Vision 2025 and their growth plans to create tangible value for all our stakeholders with velocity. The value that we've built on a strong foundation of trust over 40 years. Ladies and gentlemen, may I also give you a little bit of insight into some of the recognitions that we have achieved: recognized in Gartner Digital Commerce Vendor Guide 2021, finalists in European software testing award categories, Best Employee Relations and engagement strategy 2021-'22, Best Employer Brand Award 2021, the visionary CISO Award 2022, Global CFO at India's 12th Annual CFO, Hundred Role of Honor, the Futuristic 100 at the 16th edition of CIO 100, IMA Ashanti Center for leadership and organization development, Professional Excellence in Procurement and Workplace Management at the 134th Mumbai Leadership Award Summit. These are just a few of the recognitions that I've taken you through. Well, during this meet, apart from talking about our performance, we will also be covering our big bets, regional focus and expanding the global footprint. You will get a comprehensive view on how Mastek is geared up to the complex digital for all of our stakeholders with trust, value and velocity. Well, as we begin this event today, let me begin by quoting a dynamic member who's with us here today. Well, this is also the mission that I'm also highlighting. Mastek's purpose is to help our clients achieve their goals, whether it is to save lives or create new revenue streams. We enable success for our clients, employees and the societies at large that we live in. We do this through trusted long-term partnerships, delivering innovative business and digital solutions and creating sustainable time to value for our stakeholders. With this, ladies and gentlemen, allow me to kick start the proceedings with -- for the opening remarks. And for this, may I please invite on stage the very member whose quote I just referred to. Please join me in welcoming up on stage, Mr. Hiral Chandana, Global CEO, Mastek Group. While he has over 25-plus years of global experience with a proven track record in IT services and digital solutions across a diverse set of industries. Please join me in welcoming him up on stage.

All right. Let me tell that one more time. Good afternoon. All right. So nice to see everyone. I know it's been a challenging last 2 years. We've had interactions with many of you virtually and seeing some of you in person is just fantastic. You're all the investors and analysts that have made Mastek, and we're proud to be here in front of you today. We have many members of our leadership team, some of our founders and I will talk through how we are getting up as an organization to deliver value for not just our customers, but our employees, our societies and our investors. So I'll guess -- I'll get started, but I just wanted to set the stage with a couple of comments. We're here for the next 1.5 hour, 2 hours, where we will cover a lot of content, and I'm sure there's a lot more questions. So we've left about an hour or so towards the end for Q&A. We would request all of you to stay for dinner as well, and there are a few other things that we have even after the sessions are completed. I'm just going to make a few opening remarks, and then we'll get trough the various sessions. I guess, this clicker is working, I'm assuming or if someone can go to the next slide. All right. So why don't I -- why don't I get started while we were getting the slides worked out. The May 14 of 2022, which is coming up here in a couple of weeks, we're going to be actually completing 40 years, 40 rich years of heritage as an organization. Very proud of the journey that we've had. There's various accomplishments along the way that have taken us to this point. And it will take us a few hours just to cover some of that. So this is not about that today. But what we would like to share with you is some of our strategy for the future. And some of the big bets that we are placing that will set us apart from our competition. So with that, if we can kind of -- if someone can scroll through the slides and move to the next -- because they took the clicker away from me, I guess. Here are some of the accomplishments, Himanchi talked about a few already. But in the last 9 to 12 months, we've had some amazing set of awards and recognition. And many of you would have seen it in the press and some of the announcements. I think the -- each one has some really interesting kind of nuances to it, but very recently, tech market in the U.K., which covers us extensively, recognized Mastek as the top 10 fastest-growing providers. And this is among a very wide variety of companies that we were listed again. So that's something that we're very proud of. As you know, a couple of years back, we integrated our Oracle business, which was -- versus its demonstrated some amazingly fast growth. We continue to be listed in Gartner's Magic Quadrant, and we are very proud of how we differentiate ourselves in the Oracle space. Industry recognizes us in this area, even among Accenture, Infosys, KPMG, some very large players. The Economic Times recently listed us as -- and actually gave us a couple of different awards. So some of those are quoted as well. One very interesting award that we received recently is the best places to work for women. As you know, environment, social values, governance, which is ESG is very critical for us. And the focus on diversity and the focus on continuing to look at social values is important to us. So we're very proud of this award as well. If you can move to the next slide. All of you would have seen some of the quarterly numbers that we announced last night and this morning, we are proud not just of Q4, but the full year FY '22 results, which have been very consistent. It's a demonstration of solid execution. While we look at the numbers in itself, we do want to highlight some areas which are important, not just from a current fiscal year perspective, but even from the future. Fortune 1000 clients, which we track very closely. We now have 20 of them, and this is an important indicator of how large enterprise clients are actually engaging with Mastek. The revenue, the EBITDA as well as the profit after tax all have had record numbers, and you can see the numbers on the screen. But we're also very proud of our order backlog and this is an indicator which sets us up for FY '23, which is the fiscal year that we're already in. We are actually now crossed 5,000 Mastekeers, and this is our employees and people who really make things happen. It's not just a few individuals. It's our entire team and workforce that makes things happen. We have a corporate video that we'd like to play. So hopefully, you'll like it, our marketing team has worked very hard and put this together. So if you can play the video, please. [Presentation]

All right. I think our marketing team deserves a big hand, Prajakta, Ninad can you stand up, Kashmira? If we can -- there's -- hopefully, you've got a glimpse of what we are about and what we have done and what we can do. Let me quickly close with a couple more comments before I hand it off to Abhishek. We have a strong aspiration and ambition to get to $1 billion in a few years, and we want to do it in the early part of the second half of the decade. And we realize it's a steep line, and it's not going to be an easy journey. But we're getting up and we have an excellent leadership team. But what's more important than just the numbers is we really want to be the best places to work. We believe that our talent is really what will make things happen, and our differentiated delivery model is really what's going to create customer delight. So this is going to be critical as part of our journey together. The road to that journey is going to have a lot of different initiatives, a lot of different priorities. And I want to call out a couple of them because these are elements that we are focused on, that we're bidding on. Just to give you a glimpse of some of the numbers, our health care industry as a whole, globally is a $10 trillion industry. In the U.S., that industry is about $4.5 trillion. The $4.5 trillion that is spent on health care is a massive amount, and that's something that we're going after. Mastek started work in the health care industry almost 20 years back. Evosys, which is part of the organization now, started working in the health care organizations 15 years back. And the type of technology that is getting adopted with IoT with devices, even in the medical device space is humungous. So we want to double down on health care, particularly in North America, but globally as well. Oracle Cloud will continue to be a big bet for us. Arun and Abhishek will both talk about it. We've recently realigned our organization so that we are going into the market as 1 integrated Mastek with, again, differentiated talent and a very differentiated delivery model, which is going to be focused on business outcomes. While people will be our engine and levers for growth, we want to deliver business value for our customers, and we're going to do it through differentiated delivery models. A lot of work that we do -- actually, most of the work that we do is either in the digital engineering space or in the cloud transformation space. We want to differentiate ourselves through what we're calling cloud enhancement services. This is where managed services is done in a very different way. Our business is about delivering projects, delivering implementations, but we want to continue our stickiness with the customers through annuity contracts for a longer term, and we will do this through the cloud enhancement services. Public sector in the U.K., which Abhishek is going to talk about is a massive bet for us. We have some very large accounts. We have done some marquee work. There are some learnings from that, and we believe that there's some more room to grow there over the multiple years that we see going forward. And some of the framework deals that we are engaged in, there are some game-changing technologies that are getting adopted there. Last but not the least, while some of this is going to be done organically, we are continuously looking at inorganic means as well and cloud platforms, automation, customer experience and data cloud are the areas that we're focused on. And we feel this will give us the right combination and ammunition, combined with our organic growth to deliver what we are set to deliver. With that, I want to turn it over to Abhishek, and I'll, I guess, call Himanshi back. Thank you.

Thank you so much, sir, for sharing all those wonderful insights. Also, ladies and gentlemen, we've seen what's in the present and what's in store for the future as well, we've gotten quite an insight in that. With that, like sir said, I'd like to now invite up on stage Mr. Abhishek Singh, President, U.K. and Europe. Abishek's major focus is driving continued improvement in financial and operational performance whilst enhancing employee and customer satisfaction levels. He has to the case of experience in the information technology, health care, financial services and BPM Industries across both India and the United States, including organizations like Firstsource Solutions and Tech Mahindra. Also during the course of the evening, if you feel like putting your hands together at any point, please do so. Don't wait for me at all. And I'd like to now hand over the podium to Mr. Singh.

Thank you. Thank you. Yes, thank you. It's great to meet all of you present here in person and virtually after a very, very long time in a different role out. Many of us, we have interacted albeit in a different role. So there couldn't be more exciting of leading the U.K., Ireland and Europe business of Mastek, given the phenomenal growth potential that we are staring at where we have significant credential, it is about industrializing what we have got already. So with that, I'd like to move to the first slide, anyone who's -- I've got this. This is about just the potential where we have been for 30 years. Mastek is born in India graduated in U.K. and spent 30 years in U.K. known for its public sector heritage, which is its crown jewel. It's a GBP 13 billion -- GBP 13 billion to GBP 14 billion market, growing at 2%. How are the digital part of it is growing in teens? That gives you an idea of the market that we are trying to address. If you look at it by the sectors, the 5 sectors that we have listed there, central government, local government, health care, defense, education, adding education, where we have just started, the remaining 4 sectors, we are strongly present and for multi-years. These sectors have got multimillion pound engagements going on year after year. In these places, our wallet share is 10% to 15%, 20% tops. So if you look at the headroom for growth, there is significant space there. So you don't have to go and acquire the customers, you just have to work the customers better and you have to solve their business problems so that you can increase your wallet share. If you look at the activity there, our strongest point is solutions and software space. It's the operations space $6.8 billion market there that we are moving towards. But that's -- which is run and maintain type of work. Our work is predominantly of build and implement. But if you go towards running and maintaining it, those are the annuity works. You move away from project to a revenue certainty, and that's a much bigger market that we have already started addressing. So again, just linking back to the potential of the space versus the newer areas within the space, and that gives you an idea. Why should we succeed? You're already there for so many years. It's a niche space. The business is done based on the trust, the credibility of delivery that you have established, and most importantly, the insights that we have for various sectors based on trusted advisers, ex civil servants who advise us on those spaces. And -- the best part of it is how do you evidence it? This is all our version, but it is best evidenced in the successes and wins that you have had. If you look at the last 6 months or H2 of this financial year, the type of wins, the sizes of those wins allude to the growing confidence of our customers and what Mastek can deliver for them. Going by the memory last year, this time, the biggest deal that we had won was around GBP 25 million, GBP 30 million less than a year's time. That engagement with the same customer is $50 million plus. So that tells you that we are getting recognized. We have built our capacity and capability to actually deliver to that requirement that's out there. And last but definitely not the least, is the new structure that Hiral alluded to, the Oracle business that we have. The Oracle's biggest strength in the U.K. geography is also in the public sector. 50% plus of their business and even the future projections that we got to know, interacting with them early April was in the public sector space, both in central government and local government. So there are some significant synergistic benefits. Our presence in digital services in the central government that we can leverage to drive that business forward. Our presence in local government via Oracle services that we can use to bring our digital capabilities there. So all in all, whether you look at central government or local government or the various areas of the public sector, health care, defense, we are present significant headroom for growth industrializing it is where our interest is. And these are some of the frameworks, the government buys via frameworks. And those frameworks -- to be on that framework is what allows you to bid for those opportunities. These are just an example of GBP 15 billion plus of framework opportunities that Mastek has qualified into, and that narrows down the competition from thousands of vendors who can apply it down to some cases, just 40. And last year, Feb, March, we had announced digital capability for health. It was GBP 800 million 4-year framework where only 13 providers were there. And in -- between October through February, we must have secured possibly GBP 60 million, GBP 70 million worth of wins in that framework. So that tells you that those frameworks are very relevant. They concentrate the competition and then your win opportunity goes up. So this is just a reference and that win, that velocity gets you recognized as one of the top 10 fastest-growing providers in the U.K. SI market. Moving forward, the new org structure, what does it mean in terms of the opportunity that it generates. There is a graph out there that I want to just point us to. Across '19, '20 and '21, Gartner has rated our Oracle implementation capability as Evosys that has kept moving northward and upward. And that represents -- if you look at all the big names that's out there, it's little blurred, but all the big names, including EY, LTI is below us in terms of capability with the leadership quadrant has people who offer integrated capability, not just the implementation capability. And that's where the organizations coming together have the value because we bring in the digital capability to the SaaS implementation capability that we have with our Oracle services, and that has the potential of taking us from here to this quadrant. And that means the deal sizes that we are today engaged with the customers between $0.5 billion to $2 billion top line customers, you could get to the larger enterprise customers. That's the kind of opportunity that this reorg and getting together brings to the table. In terms of just the ecosystem, if we just reflect on it, we are the #1 partner for Oracle in U.K. It has come from them straight away. And they recognize our delivery capability, our vertical focus, the number of projects under implementation, and that gives us that place. We want to leverage that in the European market as well, but that's the start. And referring back to what Hiral alluded, we want to cement this globally. The practices that we got by the Oracle business in local government, in health in higher education. Those are complementary. That's where we want to expand. Then we have got synergistic one both in central government as well as health care, where both the digital services and Oracle business is present. This also gives you an opportunity for multi-pillar deals. So you're not just going and implementing a point solution, but you're bringing your digital services capability and hence, make an integrated deal and have it as customer for life, not just implement and go. You actually have them for multiple requirements of their's. Our whole strategy was about Oracle services, helps us land the customers, digital services helps us expand it. And it's now evidenced in the few deals that we have had, and that gets industrialized in this new org structure that we have out here. And last but definitely not the least is the SAP compete. It's a stated objective of ours that we are going to be with Oracle in this particular space. We are recognized for the SAP compete capability that we bring on table. We have experts who know -- who articulate the benefit of moving from SAP to Oracle. So this makes us very unique in the Oracle ecosystem and gets us the recognition -- moving forward, it's all about public sector that we have talked about, not about the private sector. We have had some chats before coming into the room, some sidewards earlier as well. That's a much bigger opportunity, both in U.K. and in Europe. And yes, we are doing a few things about it. We are already in the steps in that direction. So it starts with, as a 40-year-old organization having longest-serving customer, which is -- the relationship is going to be 21 years this October. If you look at just the capabilities that these -- with these customers that we have developed over a period of time, we could assetize that and take it across the sector. So we started with fraud analytics, fraud prevention, fraud identification and prevention. Any bank, any BFS customer would be interested in that. If we just walked across with digital capability, maybe it would take us a longer conversation cycle. But if you walk with this niche capability that you have done for your customer for the last 20-plus years, you will have that conversation, and we are having it with Tier 1 banks. We have started to have that conversation. But that is when you take your capability from a customer to the organization. Same way the identity and access management that you see written out there, 300,000 armed personnels in U.K. use the identity and access services that we have created for Ministry of Defense. Customer identification management system that we created for NHS, millions of patients access it using that. So that is the capability that can go to retail sector that can go to banking and financial services customers. That's how we are actually taking our capability across the sectors. -- cross-vertical point, the fraud prevention that we have talked about in NHS, prescription fraud is GBP 280 million every year, and it's an accepted fraud. Imagine the ones that they don't know, and that's not reported. That's where this capability, the standalone arms link bodies, the hospitals, the individual hospitals are interested in this capability. So we have not only assetized it for certain private sector customers, you can take it even to the public sector customer. Specialized focus. We realize that we have a significant heritage, again, creating some platforms in the vehicle leasing space. And today, with the EV revolution, we see that market exploding. So that is leading with anchor customers, 3 to 4 platforms in that space, Binks, Chema, Sofico. All of them have partnered with Mastek, and we are developing the capability to address that space, it's just an example of it, mortgage and financial services customers dealing in mortgage space. That's where we have got significant relationship that we are again assetizing the capability and industrializing it with them. And last but definitely not the least is cloud enhancement services or managed services, as we all know, but it's going in that space. It's not just about reducing your ticketing, not just about reducing your cost, but bringing the efficiency. That's a far better game. You're driving the value for the customer, not just reducing the cost. So this is just a flavor to give you an idea of what we are doing to enhance our enterprise business. And as we go into European market, these capabilities become fungible. The opening up of the customers using our SaaS capability, our Oracle capability will help us industrialize the private sector business. Moving forward, our rising profile is something that we are very proud of. It has always been known in the market that people buy from us, we have not necessarily gone and sold to them. Mastek is an undiscovered underappreciated capability that has been there for some time. So we have amply recognized it, the marketing video in our team that you just saw was an example of it. But we are also engaging locally to actually drive that. And few of the evidences are right here where the U.K. Prime Minister in his adress last July recognized the jobs created by Mastek and the contributions made to digitalizing the U.K. economy to us being the Northern Powerhouse champion. So up north in U.K., the leveling of agenda that the Boris Johnson government is driving we are at the forefront. We have been in leads for 15 years, and that gets us the right to be there. We talk about our credential, how we have created the jobs and how we are contributing to that economy, and that's getting recognized. And that also helps us with our sourcing, the graduates and apprentices program. Your analyst, you meet all the IT companies. You know everyone is dealing with the same sourcing issues, the attrition issues. One of the solution is to engage different startups of society through the apprenticeship program and graduates through the fresher program. And what the work that we have done, the credential that we have helps us attract the creme. So that's about our -- building the talent. Tech market view the fastest-growing. We have talked about it we are very proud of it. So it's out here. Last but definitely not the least is social value. Under the ages of ESG in U.K., in particular, social value is extremely important. And just one example of how a customer NHS is partnering. One of their departments is partnering with Mastek to create an apprenticeship academy, where people from very, very underprivileged start-off society would be trained and they could have an IT-enabled job. And they have chosen Mastek as a partner, as a part of our social value. We were doing it and they said, could we partner with you? We will fund a part of it and would like to join as a part of your story. So this just tells you that the rising profile of Mastek, the recognition of us being in the geography for 30 years, the way we have impacted the life of U.K. citizens. That's someone substance of where we are in U.K. and Europe. And as I said, first, I'll say that again, there's not a better time for us to be leading and driving the growth in the U.K. and Europe. That's it. I'll invite my colleague, Umang, to talk about the Americas. But before that, over to you. Thank you.

Thank you so much, Mr. Singh for sharing all those wonderful insights with all of us. Ladies and gentlemen, might I also remind you that we do have a Q&A session much later. So you might want to note down the points that you have questions on. Also, our virtual participants who are here with us. I'm sure that you might also have some questions, and you will also be getting the opportunity to ask in your questions. So please note them down as well. Ladies and gentlemen, moving on to our next speaker, we have Mr. Umang Nahata, President of Americas and EMEA, that's Asia Pacific and Middle East in Oracle business. Over the last 2 years, under Umang's vision and leadership, our Oracle business has rapidly grown to become 1 of the fastest-growing Oracle Cloud application partners globally. We're very proud of our 1,000-plus Oracle Cloud customers and his contribution has been phenomenal in being recognized by Oracle as its Global Cloud Partner of the Year for 2017 and '19 and by Gartner's MQ report for its Oracle Cloud Application Services in 2019 and '20. Ladies and gentlemen, please join me in welcoming him up on stage.

Hello, everyone. Hello, first of all, thank you to the one who wrote my introduction. It was a little over introduction, right? I don't think I've done such great work, but -- so on the Mastek's journey in the Americas is what I'm going to talk to you all about. And the flow of my presentation or the flow of my message that I have is going to be having in 4 broad sections. First, the prime theme that I'm going to talk to you in terms of -- as most of you know, we've been in the U.S. for some years, largely with Majesco and now with Mastek earlier with TAIS acquisition and with the Oracle acquisition. It has grown -- it is high, it's good foundation in terms of pivot set. And I think we have a really good launch pad that we want to move forward from. And what I'm going to talk to you about is what are we going to do differently to really expand and zoom into that kind of growth that we're looking forward to. So the 4 themes that I want to talk about is, first, culturally, what are we going to be different? How are we really going to change the needle there? To organizationally, what is the big change that we're making. Three, in terms of offering, service offerings, what is going to be our USP? Why are we going to go into the most competitive market as well as the biggest market? What is going to be a differentiator in terms of our offerings. And last but not the least, what is going to be our go-to-market? How are we really going to attack the market? How are we going to really deliver the value that we're all ambitiously looking forward to. So that's the theme, right? So we're going to be different as far as our current approach and business is concerned. First and foremost, like I said, the culture and the mindset is going to be our first important change. You have to first win it in your mind before you can go out and win it in the market. If you look at our journey, Mastek, there are 2 very interesting things that we have. One, we have been a 40-year-old company. So a lot of heritage, a lot of rich culture of resilience that we have seen, and we know how to sustain and do that kind of business really well. Abishek spoke about the really strong inroads that we have had in the U.K. government. We have graduated there. We've been there in that market, recognized as a part of the economy and the growth there. However, as far as Americas is concerned, what we really wanted to go out and say is we need the hassle of a startup. We really need to think aggressively, ambitiously take some risks, make some investments, move the needle around -- make some disruption in the market. So we are going to think like a startup as far as our North America business is concerned, and that's what is going to make us a 40-year-old startup in North America, so which has all the heritage from the 40-year-old company, all the business and governance and even the cash to back us. But the mindset and the hassle and the disruption of a startup is what we are trying to do. So that's the cultural change that we're going to bring and the approach that we're going to take in this market. The other important thing, like I said, we really are going to look at it not just from one aspect from all aspects. Between Mastek and Evosys. -- if you look at it up till now, we were -- while we are integrated as one single organization, at least in our North America business, we are still operating as 2 pillars. I think both the pillars have done really well and have grown together. But our next focus is going to be really integrating the power of 2 into 1 single unified strong Mastek. And that starts with the change in the organization structure itself. As you see, first, my role from the current role, which was the Chief Executive Officer of Evosys is going to move to the role of North America, but leading the One Mastek organization. So the entire services and the entire portfolio, the entire business that we have and that's us covering North America. It's also covering APAC and Middle East, which is EMEA. Very complementary to my role and my partner in crime, Mr. Raman Sapra here. So Raman was earlier heading the North America business. But one of the key differentiators that we want to make in our business is to make sure that we have enough capabilities and abilities that we want to build. M&A is going to be a big part of our strategy. Building our capability is going to be a big part of our strategy and making sure that we have enough assets and ammunition to go out and fire. And that's where Raman's role very grateful has moved from being the President of North America, Raman has very graciously accepted this challenge of really building the global service line for us and M&A for us. So like I said, while we are looking at one arm focusing on business and execution, there is another arm, which is really focusing on expanding the capability and focus, and that's how the leadership team is going to be aligned for the region. Raman's rollout, of course, is not just North America. Raman is supporting the entire global business and supporting our capability all across. So that's 1 important change in terms of 2, like I said, culture, which was the mindset of a start-up. Organization change really integrated one single leadership as far as go-to-market is concerned and one single leadership as far as the capability building is concerned. Now let's talk about what are we really going to do? What are we really going to offer to the market? And how is that going to be different from what we were doing up till now? If you look at the current setup, like I said, we had 3 simple pillars. We had the Oracle business, which was doing the Oracle Cloud applications implementation business. We had the digital commerce business, which was doing digital commerce implementations. Both of these pillars, we were amongst the top partners that Oracle has in North America also. And then there was the AES, which was our application enhancement services business, which is the managed services part of the business. So we had 3 simple pillars that we were focusing on. We were doing well, but stand-alone in those individual pillars. What is going to change now is this new set of 5 offerings that we're going to come out with and go to the market with. Let me talk about all of these offerings one by one. How did we come up with these first? We looked at Evosys and the Oracle business. We look at the digital commerce business that we have, and we looked at the U.K. heritage that we have created, the really strong engineering heritage that we have. And we said if we combine all of them together, what's the really strong integrated power that really comes out? And that went into the first option that you see there, it's called Glide 4.0. And let me take a quick 2 minutes to explain what the capability is going to be all about. The Oracle business had a really strong capability called Glide -- it was called Glide 2.0, which was allowing us to transform on-premise implementations to the cloud. Abhishek alluded to our capability around SAP to Oracle transformations also. So it looked at all of kind of on-premise applications, be it Oracle, be it PeopleSoft, be it SAP, we had a tool, we had the methodology and with the script to transform them to the cloud. As we move forward, as more and more larger customers are coming to our kit. If you look at our deal age, they also -- our average deal has consistently grown. Two years back, we were like $0.5 million average deal size. We're now clocking more than $1 million in average deal size and many more million dollar deals, Hiral alluded to $40-plus million deals and many of them in Fortune 1000. So as you move up the train there, your deals are becoming much more complex in terms of execution. The customer expectations are much more much more complex. And the complexity is -- because when they want these ERP systems, they just did not buy the ERP system, they really customized it. They made it fit to their specific need and environment. They also had an array of surround systems that they needed. So their environments are complex. There are a lot of surround systems that needed to be integrated. They also had complex and mission-critical applications, which if anything goes wrong there, that business could come down on. All of these, as Evosys stand-alone were things that we had, but not necessarily a top-notch in that area. But now if you combine the capability of Evosys and Mastek, digital engineering is our heart, right? We deliver amongst the top most mission-critical digital engineering capabilities. We've done that in U.K. with Home Office, with NHS, with Morrisons and many others. System integration, which is basically developing integration layer across variety of systems. That's again a very core part of our business that we do. We really go out and integrate. For example, the spine project that we did with NHS was literally integrating the entire NHS database to a single integrated spine. System integration is another real critical capability that we have and quality assurance. Most of the work that we do is mission-critical work. Projects that get awarded to Mastek was largely because they were mission-critical, and we had the capability in executing mission critical capabilities. Now if you put the 4 together in a single box, capability to deliver on-premise to cloud migration, but to take care of those customizations, digital engineering capabilities, to take care of those integrations and third-party array, the system integration capability and to deliver mission-critical applications, the quality capability. All of those put together in a single package is going to be called Glide 4.0. So when we are going out to customers now, which is the next year of Tier 1, the Fortune 1000 customers, our pitch is going to be looking at a fully integrated overall solution. And we are super excited that nobody else in that area. So for example, there are 2 kinds of partners that we compete with. One are like us, Oracle focused only. They don't have that kind of system engineering or system integration background. That makes us extremely sharp and different from them. And then there are those GSIs who do everything, but they are not so super sharp or so super focused on Oracle, as you saw from the Gartner review chart that Abishek presented, we are in that top corner there, not moving trying to edge into the leading bucket. Most of the leading guys were what, Accenture Deloitte? The GSIs are still there, they're around us. They have good capability because they have everything else, but not necessarily super sharp on Oracle. As we combine the power of 2, which is our digital and our Oracle capabilities, I think that is the route forward to really push us Northeast into that leadership order. And that's what I think the market is really looking out for as we move into the next era of cloud transformation in the top capability. So that's our first tightly integrated offering for the market, Glide 4.0. And there's another reason why we're calling it 4.0. From 2.0, we're moving to 4.0 because it has a vertical layer to its entire approach. We're looking at top 3 verticals only. Our North America business is not going to be boiling the entire ocean. We are going to focus on limited areas of business, but we are going to be really brilliant in those areas of business that we pick up. Health care and life sciences, manufacturing, which is high-tech and industrial, retail and commerce, and that's about it. But in these 3 verticals, every proposition that we have, every offering that we have, will have a vertical flavor, will have a vertical capability to it. So the Glide, we'll also have prebuilt vertical assets, and we have learned a lot from across the 1,200-plus customers that we've delivered already for. And we are now trying to bring that entire extract in terms of our vertical capability, adding to our flavor. So that's one, which is the Glide application. The second important service. Again, look at the integrated potential again. We had our digital commerce business. We were -- we are actually one of the biggest partners for Oracle as far as their digital commerce cloud platform is concerned. And we are a small player as far as their Oracle CX partner is concerned, which is their Oracle customer experience solution. We do pockets of work, and we do some work for Magento, we do some work for Salesforce and so on and so forth. Now if you look at the marketplace in North America. Most of the customer experience marketplace is actually filled with such partners like our small partners who do pocket solution. Somebody does commerce, somebody does sales, somebody does service, marketing, so on and so forth. There's no one single partner who can actually go and boost of doing a fully integrated pitch. And almost 25% of Oracle's business is coming out of CX. Our intention is now creating a fully integrated CX platform starting from commerce to sales to order management and then the back office. I think that integrated CX platform has a real good potential of really shooting us up amongst the top partners for Oracle taking a substantial portion of the 25% pie in the customer experience space. And we already got the metrology set. So we have -- we used to call it D2X which was basically the front-end proposition. And now we're adding the CRM and the CPQ behind it. So that's going to become our second important engine, which is the customer experience service line. Again, the power of integrating the 2 organizations seamlessly together. Let's talk about the third area. If you look at the cloud business, and this is interesting, most of our revenues earlier were very project driven because we would do implementation, implementation gets over, we would go out, do another implementation. Literally, which means we started our year with a very low starting base and we would build the entire thing up. And we were doing well in that. We continue to do well because we're winning lots of projects. And therefore, in spite of the low start, we would still go and blow our number as far as our growth is concerned. But that was because the mindset was cloud is a business where you don't need too much managed services. Now if you look at it from that -- a different lens, while you don't need managed services because the infrastructure is taken care, et cetera, cloud actually also has an upgrade to the product every 3 months. So our product is getting upgraded every quarter. And to realize the true potential of a cloud, there are so much enhancement that is happening. So we needed a solution or a managed services proposition that is focusing on enhancements that is delivering more value rather than just solving tickets. And that's why we created a proposition called Enhancement Services or Cloud Enhancement Services. The intention being we are not here to solve tickets for you. We are here to make sure that we are delivering maximum ROI on your cloud investment, which is going to get upgraded every quarter. And that's the third service center they're creating, and it is cloud, not just applications because we can do that not just on the application side, we can now as a combined entity do that on the platform as well as on the infrastructure side of the business. So that's our third key piece. And I'll talk about the go-to-market also about how are we looking at selling these. The fourth area is in terms of looking at verticalization. Like I said, the market is moving towards a vertical cloud. The whole era of only cloud is well accepted, getting matured, and the next wave is going to be around verticalizing the cloud. Most of the large hyperscalers are starting to acquire vertical assets. Oracle announced their acquisition of Cerner, Microsoft announced another acquisition in the health care space and so on and so forth. Our part of the business since we are not owning the product, but we have to realign our service lines to be also verticalized. And therefore, we have set up a unit, which is dedicatedly going to look at creating vertical accelerators to support that kind of vertical-first approach that our principles are taking, which is the Alliance partners are taking, what Oracle is taking on Microsoft is taking and so on and so forth. So we are going to realign our cloud proposition to be vertical focused, vertical first. And like I said, those top 3 verticals are our key verticals of choice where you want to be the #1 partner across the -- in the North America. And not just in North America, across the board in terms of -- even in U.K., Europe and APAC in all of these geographies. The last and not the least is our last -- area around data and automation. The market as we move forward. So if you look at our service lines around cloud, around engineering, around system integration, that is one section of the service line, where we really wanted to build and buy is the other area, right? So our strategy was not just to build capability our strategies also to buy and acquire. And that's the space where we're looking at buying and acquiring. So we are looking at buying and acquiring on the automation, on the data on some of the other complementary assets there, so that we have a full stack offering which starts from, like I said, commerce, does BCX, has an ERP and then could also do good data and automation as a fully integrated proposition. And that's going to become our fifth pillar, which is looking at data and automation, and that capability is going to come through our M&A route of business that we are trying to look at. And it's not just M&A is also M&A and partnerships that we're going to build on. So these 5 are going to be our differentiator. I think these 5 really show the full integrated power of the organization, not as different from the current setup, which was more single pillar or individual pillar driven. So that's as far as the pillars that we have. the line at the bottom, which is VBD, is really where the business sense that we will offer will also be completely different from what anybody else does because most of the other SIs also do have all of these pillars. Our message to our customers is we are going to deliver them on an outcome-focused market. In fact, we already do that in our Oracle business for the last 2 years, and now we are taking that across all of our businesses. It's called value-based delivery, which means a portion of our contract anywhere between 5% to 20% is directly linked to the business outcomes that we're delivering to our client. Skin in the game, right? Why would you not buy a partner that is basically investing in the outcome and is giving you an ROI, which is going to be 3x, 5x or whatever we are signing up for. We have built assets that allow us to measure those outcomes. We have built assets that allow us to identify where or what corrections do we need to make so that those outcomes can be delivered. And now is the time to really encashing that asset that we have built across all of our service lines. So everything that I said, but with an outcome-based contracting model is what we're really trying to strive for. So that's going to be our differentiator and that is what is going to be our USP as far as the Americas business is concerned. I think the next slide is -- Can you move to the next slide. So I was telling when we were preparing that Murphy's law always applies and something will crash. It happened in my session. But anyway, while the slide comes up, the next slide is going to talk about our go-to-market in terms of how are we going to take these differentiators to the market and how are we going to really deliver what we have built. So the first part is what and the second part is how. And these are the, again, 5-step plan, so it's a 5 by 5, 5 solutions, 5 GTMs in terms of how are we going to deliver. First, clearly, is our Oracle Alliance. We have a really strong partnership with Oracle. Oracle North America is growing in terms of their cloud services at around -- anywhere between 20% to 30%. Oracle does not necessarily give a direct disclosure of what is the application growth, but it is anywhere between 20% to 30%. And that makes it at least a $3 billion market, if not more. And currently, where we are in terms of our size, I think we have a very, very small percentage. We have tons of headroom. So I think in the North America market, we don't even need to discuss potential because the potential is enormous. But the proposition that we are now building with that market potential that we have and the vertical focus that we're going to create, which is around health care, life sciences, manufacturing and retail would allow us to really increase our market share, look at the next level of deals that we're going to really go after. So that's one, which is continue focusing on the Oracle alliance and making sure that business continues to grow. Within the Oracle market, we were currently delivering or only looking at the mid-cap IT, which was in the North America parallels, which was around $500 million to $2 billion kind of customer was our sweet spot. That's where we were winning most of our business. So we continue to -- first pillar looks at that. But we're now creating a special team, which is going to look at the up market. We think team armed with the new assets that we have -- we have a really strong potential of going after the next set of larger customers, which is the $2 billion above or the Fortune 1000 as they may be. And there's going to be a dedicated sales team only focusing on that Fortune 1000 customers and trying to make sure that we are getting many more Fortune 1000 logos as we move ahead in the coming years. The third key area. As a part of our North America business, we actually had a very small account mining setup. We did not really have a really strong account mining setup. And again, a learning from our U.K. business. Our U.K. business largely relies on very strong account mining that we do with Home Office with NHS, with the rest of the government and some of the key private sector customers that we had like Morrisons. We want to bring that entire business approach to our North America business. I think we have won lots of customers there. Out of the rich customer installed base that we have, we have further shortlisted top 30 customers that you only want to go after in terms of account mining and create a new team, parallel. It is a brand-new team. looking at account mining only. So that team is not looking at 1 or 2 in terms of Oracle. They're not going to Oracle for their leads. They are only going to go after our customers, look at the entire scale of breadth of our propositions and start to do account mining with those customers. These customers have potential that we think currently anywhere between $5 million to $25 million kind of range annual repeatable revenue. And we'll see how we build across -- we have classified them further in terms of what we could potentially win. But that's the third go-to-market. The next one, like I spoke about the cloud value services, cloud enhancement services, which is the managed services proposition that we have. We think we've got a serious differentiator in our pocket now. And we can go with that solution not just to our customers for whom we are doing implementation. But to everybody else's customers, the Accenture and the Deloitte and the Oracle Consulting and everybody else's customers also because we think we have a service proposition that is extremely sharp, extremely different, rail true value for money and look at that installed base, which is not our installed base. There are around 7,000-odd Oracle cloud installed base customers already sitting in North America. And with the proposition that we have, we think it's a strong market to go after. Again, not the same pipe, right? We're not going to Oracle. We're not going to our customers. We're now going to a set of customers who we had lost or we have not competed for in the implementation. Was just trying to grow the managed services business, and we've already started winning some of those deals in this fiscal also. Last and not the least, our new alliances. While our business really had strong alliances in connection with Oracle, we think this is -- now is the time to really expand from Oracle again, as you put the integrated organization to focus, Microsoft has been a key partner for us in many other geographies. We really want to now expand from Oracle to look at Microsoft, but in complementary areas of business, look at no-code development, look at low-code development, look at BI, look at Azure DevOps and so on and so forth. Similarly, expand that to ServiceNow and Salesforce, like I said, with our M&A view, we are looking at those additional capabilities and alliances also to come along. So expanded alliance from Oracle to new partners that we have. We are looking at the few modern age, really fast-growing principles also like Snowflake and Pega who are growing now in terms of almost like 100% kind of growth companies also. So we're trying to build new partnerships with those newer alliances also. So while it was Oracle alliance for now, we are changing that in the future to expand from Oracle to look at 4 or 5 other key alliances that we will go after. And that ladies and gentlemen is the plan. So look at a different culture, reorganize the organization, find the differentiators and have full throttle on the go to market. So that is what we are really trying to do, and I'm sure we will make a significant splash in the market with all of these changes. So that's all I had for you -- all of you. Thank you.

Thank you so much for all of those insights. Well, how are we doing? Can I get a thumbs up from everybody? That's nice. Just wanted to know everyone is doing good. Okay. With that, ladies and gentlemen, I'd like to now invite Mr. Arun Agarwal, Global CFO. As Global Chief Financial Officer, Arun overseas multiple functions globally, including finance, investor relationships, facilities and infrastructure. He has over 19 years of experience as a chartered accountant and previously held senior leadership roles at Firstsource, GE, Wipro and SINOVATE. Ladies and gentlemen, please, will you join me in welcoming him up on stage.

Hi, everyone. Good afternoon. I'm sure you would have seen good conversation happening by Hiral, followed by Abhishek and Umang. I'm sure there's a good business perspective all of you have got. My conversation is more about converting those business into numbers. And I'm sure as a number person, all of you would love to see some of these numbers. I'm sure your spread sheet -- I can't beat any of your spread sheet in multiple models and keep challenging us. But I'm sure some of the data will help you to understand how we have done in past, and you will get to learn more about how we are going to do in the future. But most important, it's really a delight to see all of you together after 2 years. We have been talking virtually and believe me, I was tired talking virtually. So it's really a pleasure for me. Thank you for joining us today. Getting you numbers, we just declared our number yesterday. So talking quarter is very, very important. And none of you leave me without talking the quarter always, I say, please talk years, and you say, no, please talk quarter. So let me spend a minute on the quarter performance. As we closed quarter 4, it's 4.5% -- 5.4% quarter-on-quarter growth sequentially in constant currency term is 5.3%. PAT grew by 5.7% and -- most important, in quarter 3, we announced, as Abhishek mentioned, about one of the major deal in NHS, which was $60 million. In this quarter, Abhishek, again has landed another deal, which is $65 million plus, but it is in a different account. It again reinforces the kind of work which we do for public sector. Our engagement used to be GBP 25 million, GBP 30 million, 1 year back, and we started our journey with GBP 12 million 4 years before. So the journey is really going as planned. Mining the existing relationship, landing the new relationship at the same time. And as you are mining, the relationship becoming $5 million to $60 million as evident from our order book. Consequently, our 12-month order backlog stood at $193 million. It's a reflection of 15% quarter-on-quarter growth, but most important, 30% year-on-year growth, setting up the lead indicator for us as we get into next year. In terms of very quick chart talking about how we have done the year, 27% growth in revenue, 27% growth in EBITDA and 32% growth in PAT. What is most important is to look into the bottom left table, where we are talking about the growth is not only in 1 year. The growth is spread across. If you can see, last 5 years, it's a CAGR of 28%, definitely including M&A and organic growth at the same time. We started our journey with INR 817 crores. And we have closed this year with INR 2184 crores, roughly $293 million as we speak. Not the revenue with what has been focused upon at the same time the operating EBITDA margin, it used to be 12.2% in FY '18. We have delivered 21.2% in FY '21 and delivered the similar percentage in FY '22, 21.2%. Our PAT margin started with a single digit of 8% in FY '18, and we have close to 15% in the current financial year. It's a fabulous performance delivered by every Mastekeer whether top line or the bottom line consistently over the last 5 years. Thank you much, again. One of the most important and one of the favorite topic which keeps coming whenever I talk to any of you. What happens to our U.S. business Umang -- short, why and how we are going to grow in the U.S. as a market? And the numbers are talking here. Currently, 65% of our business comes from U.K. -- sorry, 65% of our business comes from U.K. 3.8% comes from Europe, 17% come from U.S. and 14% comes from EMEA as a market. Our target as a part of vision 2025, which Hiral is alluding into, we are targeted to deliver 34% from U.S., 46% from U.K., 10% from Europe and 10% from EMEA. It doesn't mean that any of this U.K. EMEA is going to degrow. The only point is U.S. and Europe is going to grow much faster than the company average. So that's the plan for the U.S. in terms of numbers. In terms of revenue type by industry, currently 47% comes from the public sector and 52% -- 53% come from the private. Our endeavor is to make it 60-40 as we grow in U.S. predominantly in the private sector. And as Abhishek alluded, into, we have a strong plan to get into Europe and also to grow U.K. in the private sector space. Again, the reflection of the profits, the reflection of the work which has been done by Mastekeer, which started our ROC used to be in double digit, but 17% kind of a percent number in FY '18. It has consistently increased now is 33.6% for FY '22. Similarly, ROE used to be 13.7%. It has become 29.5%. It's a consistently increase year by year. Our cash position continues to be strong. It used to be INR 372 crores. We closed this year with INR 800 crores. It looks a little lower year-on-year. Just to remind you, we have done 10% more acquisition of shares of Evosys as a part of overall journey, which led to some of the dilution in the cash number, but it is reflected into the ownership structure, which we have. The utilization, again, when we talk about operating EBITDA, it didn't happen by its own. There were multiple actions in terms of operating levers, which were taken by the company in the last 5 years. Just to talk very few. Utilization used to be 77% in FY '20. It has become 80% in FY '22. -- again, 1 of the lever which is tracked on a regular basis by Mastek. Headcount mix, it used to be 65% onshore in FY '20. It's 74% in the current year. Significant shift in offshoring, which is happening is also leading to improvement in the margin at the same time. Our client concentration because one of the bigger risk was 5 years back or 4 years back, we were highly concentrated into U.K. and highly concentrated in terms of top 5, top 10 customers. FY '20, for example, 58% was coming from top 10 and 40% was coming from top which has come down to 30% and 43%, respectively. It means we are getting more and more customers are able to land, mine the existing one as well at the same time. Again, as a return to shareholders, EPS started with INR 30. Now we are INR 107, which we have delivered for this year. And dividend per share has gone up from INR 6 to INR 19 in the last 5 years. To summarize very quickly, I'm sure next 5 years is going to be very, very critical as we are talking, as Hiral alluded into getting into $1 billion journey -- what we need to make investments consistently, whether it's growth strategy, your partnership alliances, which Umang spoke about, Abhishek alluded into, digital talent, which Marinda is going to cover, investing into next-gen capabilities industry-leading high quality of earnings is continue to be focused. And at the same time, when we are working to generate profits, giving back to the society is equally important. So while we do everything to make money, but at the same time, how can we distribute more and more to the society back is going to be defocused upon. To conclude, while $1 billion journey I'm really excited about. And I can promise, as we get into this journey and embark upon for the next 3 years, you will be excited to be with us. Thank you.

Thank you so much for sharing your thoughts with us. Ladies and gentlemen, once again, I'd like to remind you that we do have a Q&A session. So if you have any pointers that you'd like to note them. Please do so. Also, a reminder to our virtual participants that are here. With that, may now please invite Ms. Maninder Kapoor Puri, Global CHRO. Maninder oversees all aspects of HR practices and operations in order to meet the needs of the constantly evolving business, facilitating strategic planning and initiatives, change management and organizational design. Prior to Mastek, she had global human resource roles in organizations such as Firstsource Solutions, ICICI OneSource, Accenture and IGATE Solutions. Ladies and gentlemen, please join me in welcoming her up on stage.

Thank you. Thank you, Himanshi, for a lovely introduction, very kind. Thank you all for giving me the opportunity to present to all of you. I do have a couple of slides yes. So I think like Abhishek said, it's a great time to talk about business. I also believe it's a great time to talk about people and culture. Reason being the whole great resignation that you guys have seen over the last 2 years with pandemic coming, starting with the whole world becoming literally inaccessible and suddenly the world waking up to the fact of digitalization in every single aspect. I think going from there to where we are today, we've had a brilliant journey as an organization. But before I start, I do want to play a video for you. Could we please play it with you. [Presentation]

Thank you. So as leaders before me spoke, right, they talked about how brilliantly we're growing. You've seen the numbers doing very well. All this didn't happen if there were no people working for us. And today, I think all our leaders look very good. because we have brilliant workforce behind all of us. So I do want to thank all the Mastekeer for getting us where we are today. Thank you. I do want to say that any organization's backbone is its people. And if you do invest in people, you do work with them, they would stay with you. I know attrition will be a question mark and a topic that will come, and I'm aware of it. But I don't want to focus on attrition. I want to focus on the growth mindset. So one of the things that we talk about at Mastek is our 4.0 culture, which was initiated by Mr. Sudhakar Ram, our Founder member. And he is somebody who really passionately drove it. And our job is, of course, to take it forward. And I strongly believe in this culture because if we have to move from a high-performance culture to an organization that is going to be a growth mindset culture because those are the 3 areas that we talk about growth, growth and growth. And if that is what we want to drive, in the organization, then we'll have to make sure that all our employees, every single Mastekeer is empowered, is flexible. They have the ability to take decisions and all that can only happen if we have the culture to really empower them. And that's what I think all the leaders here are driving towards. I keep forgetting. Okay. So talent is another area that we -- I think each leader spoke about. And I think Hiral mentioned and talked about differentiated trial talent. Don't worry, I won't bore you with the whole 9 blockers. But I do want to talk about the 9 shifts that we are making as an organization. I think the first and the foremost I'm going to go to the center of the tile, which is the future of the workforce. You must have seen in the video about gig workers, graduates and the next generation. Now why is it important for us? Today, as we stand, we have 85% of our Mastekeer who are either Gen Y or Gen Z and which will only increase. We have been hiring graduates. And next year, we tend -- we plan to hire at least 50% more graduates that we've done in the last. So which means that if our workforce is going to be Gen Z and Gen Y, is the workplace ready for them? Our practices -- people practice is ready for them. Are they looking forward to come and work with us which goes to my digital enablement tile, which talks about what is it that we're doing for them. Today, we have apps for everything. I mean if you have nieces, nephews, children, grandchildren, who are Gen Y, Gen Z, you will know they will always be on the phone, and if there's no app, it does doesn't excite them. How do we make the workplace far more hyperpersonalized for them? I think that's the focus for us. We today -- just to give you an example, we have a tool -- an HR bot, we call it Mastech best friend forever. And this bot usage in the last year itself has grown to about 86%. -- just because people tend to talk to the bot rather than talking to human beings. But it's interesting because it also tells us that what is it that we need to do more of. So today, we have digital ID cards, digital visiting cards and so on and so forth. The other thing I want to talk about is the differentiated talent from upskilling, reskilling point of view. So there are -- again, because we are a technology company, so we have to leverage technology. We have a very interesting tool called Tech Sense. So there are 3 areas we work in. One is our current talent, how we're upskilling them for the future. And where do we get all the inputs from. So here are the 2 business leaders that you heard and of course, Raman earlier. They would give us all the inputs through their sales teams and all the input would come to us and we start to work with people, right, to upskill them for future. Then we need to also work with current program managers of what is happening today, which is literally reskilling them and getting there. And third and not the least, but how do we work with every single mastekeer to become the best version of themselves. So those are the sub skills that we also work towards. Now when we are doing this and when we are getting our workforce ready, we also need to charter in various territories that we've not been before, and hence, brings me to our diversity equity inclusion and it's not diversity about women alone. I think there's a lot of untapped talent out there. There's disability diversity. There is, of course, gender diversity. And unfortunately, in India for now, we only talk about women diversity. I think in gender, there are other genders that we need to look at. If 50% of the world population is the other gender, I think it's important that we get them to the workplace. So that's an untapped market for us. And when we also talk about the whole -- why am I -- the reason I'm probably talking about skilling here, we're also getting people from -- and we've been doing that for a long time at Mastek. We get people as graduates. We train them. So we do look at build model within the organization to upskill the talent. The last -- maybe I'll not go through each, but last thing that I do want to talk about is the work-life balance. Now when you are dealing with Gen Y, Gen Z, while they love to work and you will see them work odd hours, and we talked about flexibility right upfront for 4.0. I think 1 thing becomes very important to them is the whole work-life balance and mental wellness. So we do have some 4 areas of wellness we work towards. One is social wellness, which is something that Mastek prides itself and I'll talk about it in the next slide. Second is the financial wellness. So we do tell them we call some of the investor community to help them, how do they invest their money. We do some physical wellness even during pandemic times, we had sessions going on. And of course, we have an app again for emotional wellness. So we have a mindfulness app available for everybody. We also provide every employee along with the 2 family members for a coaching or a counseling session as part of the program. Moving on. Okay. The slide's free to move. So the next thing I want to talk about, I think, which Hiral, I think each of the leaders mentioned, and of course, so did Arun talked about the ESG. Now ESG is a new term that is coined. But I must say that Mastek, even before I joined the company, I can tell you, when CSR, and I think Ashank shared the story with me that even before the CSR Act came into play where you have to give away 2% of your profits. Mastek always a part of giving to the society. So I think in that gambet, we started to work towards the entire ESG initiatives. In the ESG initiatives, we've taken some 4 very strong -- can we move this slide, please. Thank you. So the Mastek commitment that we're taking are 4. One is achieve net zero emissions in U.K. by -- and you'll see 2 U.K. programs there. In U.K., by FY 2045, achieved gender diversity at 40% by 2026, touch 1 million lives through CSR programs by FY 2028 and of course, achieve 25% ROI. Now this is something I want to just mention that I think we're the only organization that I have come across where pre-pandemic, I had employee payroll giving program at 85%. 85% of our employees were giving to society on their own. There was not a mandate. Today, as we stand, we are at 59%. It has come down, but I'm -- but I still think -- I mean, if you go to any organization, there won't be more than 10% or 12%. So that we take really pride in, and that talks about the culture that we drive at Mastek. We do have an ESG life site, which is led by Vimal and he helps us manage a micro site for the organization where we get to know real-time water consumption, power consumption and so on and so forth. So just to -- I do want to share something with you, each one of you who've registered today. Would be getting -- we'll be planting a tree in your name and you'll get a certificate that we could get to you. And that's what -- I just want to start, leave you with a video. And I think any organization testing models or for me, my customer is my employees, right, a Mastek. Since U.S. is a growth geography, I did request one of the U.S. leader to share her story about her experience with Mastek. Could we play the video, please? [Presentation]

Thank you so much, ma'am, for sharing your thoughts and all those wonderful insights. Well, ladies and gentlemen, before we move ahead, and I just want to ask you something. Are you all good? I can see we had a lot of people joining us a little later. And all of you have been in wrapped attention throughout all of the speeches that we've had. So I just figured we could do something before we invite the next gentleman up on stage, and it's very simple. All you have to do is show me your hands. Great. Now just rub them together like rub them nicely, nicely, nicely. Make them nice and warm. And now place them on your eyes. If you're wearing specs, don't forget to take them out before you do that. Yes. And did you know that -- before we invite the next gentleman up on stage, if you give me a huge round of applause, you get discounts. Just saw it happens. Yes, you get discounts on flights, hotels, on different websites, not here. You don't get anything here. Okay. With that, ladies and gentlemen, will you please once again with all the enthusiasm, join me as I invite Mr. Hiral Chanana, Global CEO, Mastek Group, back on stage to spotlight a few important things. Over to him.

All right. This is our -- all right. So this is our last session, and we will open it up for Q&A here in a few minutes. I hope you guys -- everyone here got a flavor of not just who we are today, but where we want to go. A lot of you have been with Mastek for a while and have been following us through the years. I think before we can wrap up the official session and get into Q&A, it's important to highlight how we are getting up and bringing all of these things together. So I'll just highlight a couple of areas to give you a flavor. Umang talked about industry cloud vertical capabilities. I mentioned earlier that health care is a $10 trillion market globally. In North America, it's $4.5 trillion. In the next 5 years, the Medicaid prediction is that it's going to be $6.8 trillion. And we believe this is a huge bet that we will make. There's 38,000 nurses shortage today. The technology adoption that is happening is at a very furious space. And based on our front office to back office to middle-office capabilities. We believe we have all the ingredients that it takes right from patient experience, all the way to supply chains to bring it all together, not just from an implementation perspective, but from a business transformation perspective as well. There was a lot of mention about partnerships, about service lines, about capabilities. We cannot do it all to -- all alone, we'll have to do it together with our partners, with our ecosystem of innovators. We're going to be focused on these 5 service lines, and each of them are going to be very selective where we are partnering with leading providers and platforms. You already know our capabilities in Oracle. We already are doing some very cutting-edge work with Microsoft and AWS. We are going to bring on a couple more partners like Salesforce and UiPath and scale them up in different areas across digital experience, engineering, data automation, AI, commerce, et cetera. We also want to complement our capabilities with some horizontal and complementary partners. We cannot be in every space. We are focused on digital and cloud services. We are very razor-sharp focused on that. But when we go to the customer, when we go to an account, there will be infrastructure capabilities. There will be cybersecurity capabilities. So we want to partner with complementary providers to bring that together as well. You heard some of these names, and you would have heard some of these in the press releases as well. We talked about Home Office, whether it's asylum services, whether it is customs and immigration. The lululemon account that we have in the U.S., we're transforming their entire omnichannel experience and digital value chains. Middle East, we don't talk about it much, but there's some amazing work that we have done with hospitals, with telecom companies, with financial services companies, and we continue to focus on that geography and grow to the next level. Companies like Arcadis our global accounts. This is another area that we are focused on. The industry lines are blurring. When we talk about manufacturing account versus a retail account versus a health care account, many of them are adopting technologies, and it's all going to come together. Many of them are present globally, so we are creating a model that will cater to these accounts globally. After this session and after the Q&A, you will see some videos and you can take your time during dinner. There are some screens outside in the reception area where we are launching a couple of new platform solutions. We're very proud of this because our growth in the future is not going to be just about growing through IT services. We want to differentiate like Umang and Abhishek talked about through enhancement services through value-based models to business outcomes but also through innovative platform-led nonlinear growth. Whether it's in the digital retailing in the asset management space, whether it's in the medical device areas, you will see a couple of solutions which showcase the power of not just services but software platforms and partnerships coming together. I really feel that each of these areas have so many different elements to it. But I think it's important to summarize, you've heard a lot of different content here in the last 1.5 hours. But in summary, if you take each one of these areas, there is a massive untapped opportunity in Americas. We've talked about the combination of the 2 organizations. Umang talked about all the different USPs, the go-to-market models. As we look at Glide 4.0 and as we look at specific focused industries, we are super excited about the potential here. We will demonstrate this in the numbers over the next few quarters. But this is a market that we believe that we are ready to conquer. Public sector in the U.K. has been a stronghold for us, but the journey is not over yet. Abhishek talked about just the different framework deals that we are engaged in. Now we're not going to win everything, but we're not going to lose everything either. There's a significant untapped potential in many of the large government institutions and we are equally excited about the potential in private sector, whether it's financial services or retail. Europe, non-U.K. market is opening up for us as well. Maninder beautifully covered the whole Mastek 4.0, the future of the workforce. This is so critical, not just from an attraction or a retention perspective, but also looking at how will work be delivered in the future? How are we preparing our talent? How are we grooming our people for the next future skills that we need to be prepared for? Innovation is not going to happen in a point in time. It's a continuous journey. And even 1982 or the early 1980s when we started, we started developing products. The journey went on to 1990s, the journey went on to 2000s. We didn't get into Y2K. We didn't get into infrastructure. We didn't get into BPO, but we always focused on business solutions. We always focused on delivering business value to customers. That journey is going to be taken to the next level. The commitments that we're making on ESG, whether it's environment, social or governance, it's not a new journey. We've been doing that for years. We're going to continue doing that for years. The One Mastek brand, the power of all of us coming together is very, very powerful. And this is a journey next 3, 4 years as we pivot into a new phase. There's been a lot of challenges through the pandemic. We're still dealing with macro uncertainties, whether it's the war, whether it's the supply chain, whether it's inflation, whether it's wages, but we are getting up and prepared to handle those challenges. None of this can happen with a solid, solid team, and you've got a glimpse of some of the people that are already in my leadership team, but there's so many others. I want to first start with saying that no organization can come to the stage without the resilience and the founding members of our company who've been together for the last 40 years. I'd like to call on Ashank and just maybe if I can request Ashank to stand up. Ashank Desai is not a new name. And one of our founders, and I think you can relate to this because many of you know him, but the ethics and the integrity of our organization is how the 4 founders were bonded together. Late Mr. Sudhakar Ram is no longer with us, but we have Girija Ma'am. Girija, I can request you to please stand. Thanks, Girija. And we have 2 other founders, Sundar, who is in California, you saw Deep Blue, the organization initiative, which focuses on bridging the gap between academia and companies. That's his baby. He's been the architect behind it and a lot of people here have taken it forward. We also have Ketan Mehta, who is the other Co-Founder who continues to be a key part of our Board. So we are very, very fortunate to have such strong founders who have built this organization and continue to provide guidance to the Mastek -- One Mastek going forward. But I do want to call out a few more people here. Umang and Abhishek both talked about the capabilities that we are building. And those capabilities and service lines, we've created a brand-new role called the Global Chief Growth Officer. This role is going to be a key strategic part of our Vision 2025 journey. We're going to bring all the capabilities together, looking at build, buy, partner, all our service lines, partnerships, all our inorganic activity, our minority investments. And Raman, if I can request you to stand, Raman's going to lead that charter. You've already heard Maninder talk about people and our culture. But if we don't deliver that day in and day out, if we don't delight our customers, if we don't continuously challenge our customers and partner with them, none of this is going to happen. Our customer focus has been second to none, and we are very proud to have our Chief Delivery Officer, who continues to drive that journey, Narasimha, if I can request you to stand. Hopefully, you've got a glimpse of what we can do with amplifying our messaging and some of the videos with what our marketing team has come up with, you'll see hopefully more splash in the social media, but we'll stay true to ourselves. We're still going to remain a humble company. We still want to make it realistic and deliver value. So we're very proud to have Prajakta leading our marketing efforts, again, big hand for Prajakta again. We also got recently Ritwik, Ritwik if I can request you to stand. Ritwik comes from a slightly different background. He started his own companies, he sold his companies. He's built platforms. He's created new ventures and platforms and he's going to lead our innovation and platforms charter. And like I said, you'll see some glimpses of demos and videos that we've already built. I don't see the most important person who's Vimal. So Vimal, if I can request you to stand as well. And Vimal leads our legal compliance and risk office. But he also has multiple hats where he is playing a key role in integrating our entire ESG efforts. We cannot be decomplexing digital. We cannot be talking about digital engineering and cloud transformation unless we decomplex our internal operations, unless we digitize Mastek internally. We are very proud to have a solid IT organization, which we call Digital Catalyst team. [indiscernible] if I can request you to stand, leads our DCT team. And while you don't see some names here, we have a few other leaders like Sundar and Rakesh. Rakesh, if you can please stand as well. Rakesh is actually our Co-founder of Evosys, who's joined the company a couple of years back along with Umang and so many talented leaders that we have now integrated as One Mastek. We've had some amazing learnings and best practices from our Oracle business that we are institutionalizing across the global Mastek One brand. Rakesh has played a key role in growing the Middle East market, but before that, partnering with Umang, Yash and many others to build the entire reverses company, which has been so super successful. So I'm just so excited and humbled to be part of this amazing team. We are looking at a challenging but a super exciting journey ahead. In addition to our founders, in addition to our executive leadership team, we also have some very, very senior advisers who we have onboarded. We've made some announcements on that recently. So in addition to our global Board, we also have David O'Brien, David Rutchik, Vivek Chopra, Rob Shaw, Gary Burns, you see there at the bottom row. Each of these members have amazing connections in the industry whether it's in U.K. public sector, whether it's in private sector, whether it's in large deals, whether it's in private equity, whether it's in running large companies themselves as ex-CEOs. So we are very proud to have these caliber of advisers as part of our global Mastek team as well. So with that, I want to end our formal session, but also tell you and reannounce that we are completing 40 years on May 14. This is a huge milestone for us. Like Maninder said multiple times, none of this would have happened without the Mastekeers, without our people who made all this happen, without our investors, without our supporters, without our stakeholders, which is all of you without our customers. And we are just very fortunate to have not just an amazing team, but also some amazing supporters and investors like yourselves. So with that, I want to conclude our formal session, and we'll open it up for Q&A. I'll invite Himanshi back. Thank you.

Thank you so much, sir. Ladies and gentlemen, the Q&A session shall begin shortly. We are just going to get everything in place. It's a very simple process. I'm sure that you have a couple of thoughts on your mind. I'm going to encourage you to use this platform to please ask in your questions. And all of you do is just raise in your hand. We have mics in the audience, I will come to you. And may I also request you to please introduce yourself, your firm and the representative that you'd like your question directed to. Also, our virtual participants who've joined us here. Well, firstly, thank you so much for being a participant here with us today. And after the physical questions are done with the participants that are here, we are going to then open the opportunity for our virtual participants to ask in the questions. So with that, in the next few seconds, I'd like to invite our panel up whom the questions can be directed to. And the questions that are coming in from the audience members, you can just -- maybe we can get the first person who's going to be asking the question ready. Who's going to be the first person to ask in the question today? Great. With this, may please take the opportunity to request you to hand over the mic to this lovely lady right there in the fourth row. With that, may I please request Mr. Hiral Chandrana, Mr. Abhishek Singh, Ms. Maninder Kapoor Puri, Mr. Arun Agarwal and Mr. Umang Nahata to join us for the Q&A session. Please be seated. Thank you for joining us. Could you please have -- Ma'am, before you're asking your question, how are you doing today? Yes. Thank you so much for joining us here. It's nice to have you here. May I request you to please introduce yourself, you firm and then direct the question.

Yes. I'm Lisa Fernandez, and I'm from McManus Wealth Advisory. So first of all, congrats on a strong performance and a great quarter. And thank you for hosting this wonderful event. So the thing is that you are focusing more on the U.S. market now. And for that, you'll be zeroing down on substantial investments and capabilities also? So I want to know what will be your acquisition budget and/or the value in the -- the value range that you're looking, that you're targeting?

Do you hear me?

Yes, no -- not yet.

Yes. Can you hear me now?

Yes.

All right. Great. So first of all, thanks for the question and Lisa. I think I want to first clarify, when we say we're going to double down on the U.S., it doesn't mean we're going to focus only on the U.S. We are going to focus on all our key growth markets and verticals, which includes U.K., which includes Middle East, which includes Europe. We do see a substantial unrealized value in the U.S. just because of the sheer market opportunity and our size. Relatively speaking, as you know, most of our competition does about 60% of their business from the Americas. And in our case, it's a very small percentage point. So from that perspective, relatively speaking, we have a lot more room. Having said that, when it comes to both organic and inorganic, we need to do a few things when it comes to capability building. So our investments are not just going to be on M&A. They're going to be on capability building, on sales, on subject matter experts, even on solutions and delivery. When it comes to M&A, we have a thesis, which is cloud platforms, data, CX automation and the companies that we are targeting as of right now is companies in the range of $20 million to $50 million run rate. So what that means is companies who are doing annual business of about roughly in the average range of about $30 million, $35 million. So that's the sweet spot we believe, is the right type of acquisition. Now that doesn't mean we're going to not look at companies which are below that or above that. But that size of companies typically would come with a certain type of valuation. Some of it depends on the revenue side, some of it depends on their EBITDA's. So we are not hung up on a specific valuation or a specific size of investments. What we have focused on is looking at what capabilities do we want to amplify, what areas can give us market access, which industries can we even complement our own capabilities. And that intersection of capability, industry and market is where we will look at these assets. And we're going to be cautious in making sure that we invest in the right assets, but also we are aggressively looking at scanning the entire market for the space. So those are the types of companies between the $20 million and $50 million range. It's very difficult to predict what the valuations for that, as you know, that the company -- the market is very competitive today, but we are looking at various options there.

And what will be the impact on the margin, just like a guesstimate?

First of all, it's very difficult to predict future margins because some of these assets have margins which are much better than Mastek. Some of these assets have margins that are lower. Some of these are compatible. So it really depends on the acquisition that we finally make. We believe that independent of where the companies are today. Some of these companies, particularly the companies who are in the $20 million, $30 million ranges do not have the scale at which Mastek can provide some of those shared services, right? So whether it's recruiting, whether it's delivery, whether it's platforms, whether it's tools, whether it's the infrastructure, whether it's the sales and account access. So that's what we will leverage. What we are looking for in these organizations are differentiated capabilities and market access, we believe that we have the underlying shared services infrastructure, which can over a period of time, make them comparable, if not better, when it comes to margins.

Okay. And my second question is on Evosys merger. So it's -- I want to know that -- are there any synergies yet to play out of this? And in which segment will that be?

So if you ask me very candidly, we're just scratching the surface on synergies today, right? While we've done a few things well when it comes to co-selling together and cross-selling in each other's accounts, there's a tremendous potential. And what Umang outlined earlier with respect to combining the organizations in North America. What Abhishek talked about how the service line and the Oracle business is getting integrated in U.K. and Europe. The size of the deals and the type of accounts would be the 2 indicators that I would suggest you follow in the coming quarters. You will see that we are starting to win a lot more end-to-end deals. These are deals like lead to cash transformation, front office to back office. And that happens because we have the Oracle cloud capability in the back office and the front office and the digital engineering capabilities in between. So bringing that together and replicating that success in multiple accounts in multiple geographies and multiple industries. It also will give us access to larger accounts. So we're going to report out very transparently, and we do this even today in the investor sheet a number of 3 million and greater accounts. So the accounts which have 3 million run rate and greater that's an indicator for you to say, hey, we're actually growing our account, you're mining them well. Fortune 1000 clients, these are enterprise companies, which are greater than $2 billion. So that's another indicator. And in the end, how we are delivering on our growth strategy and giving industry-leading growth. So these would be the indicators that you can follow as we continue to drive synergies.

Yes. We do have a couple of hands that are up. So we're just going to pass on the microphones. Also for the webcast participants under the media player, there's an audio question button to ask live questions, so you might want to locate that. You still have a little bit of time.

Thank you for this wonderful presentation. This is Mayank Babla from Dalal & Broacha Securities. I wanted to know what is the current contribution from Oracle-led services to your revenue?

It's roughly about 33%, 34%.

Okay. And given that you're planning to expand towards other alliances, what do you expect this to be in the next 2 to 3 years?

So Mayank, our overall business has got various elements to it. You saw some of the different service lines. Oracle plays into a couple of them. Actually, we have the enterprise apps kind of HCM supply chain, finance transformation that happen. We also do some CX work that Umang alluded to. The data work is starting to come up. So as we look at growth trajectories and start investing in Microsoft sales forces or other alliances, we don't necessarily see the Oracle business slowing down for the foreseeable future. The Oracle installed base of on-premise customers is still very large. Some of the managed and cloud enhancement services that we alluded to earlier is still a big opportunity. So when it comes to the business mix of Oracle, we believe that, that is going to grow at an equal rate as we grow the organization. Now there might be some newer alliances that become much bigger. So for example, Microsoft is another big bet that we are making -- but that doesn't mean that the Oracle business is going to slow down.

And you mentioned about the products and platforms -- the platforms business, sorry. What is the current contribution from there? And what is your plan over the next few years?

So the current contribution from that is fairly minimal, right? It is -- as you know, Mastek, we have actually a history of building solutions and products even in the '80s. We had a very successful platform, Majesco that turned into a super successful company. And so we have the DNA. Even when we look at our business today, there is a product kind of mindset when we look at our digital engineering work and our cloud transformation work. So the assets that we have today are not getting monetized. We are leveraging them to be successful in front of our customers but you've not really monetized them. And that's the journey that we're on. So we will share more details when it comes to what the potential is. But we believe over a period of time, we should be at -- 5% of our overall business should come from our innovation and platforms business over at least the next 3, 4 years.

We have hands in the front and the back. We can just...

I mean the company has delivered superb financial performance over the last 2 years. [indiscernible] from Carnelian Capital. My question was on the -- I mean, overall target. I mean, we mentioned about close to $1 billion kind of revenue over the next 5 to 6 years. I mean, how should we see the organic front here? I mean, any color on the organic side would be helpful. I mean what kind of organic opportunity, what organic growth are you seeing over the next 5 to 6 years? And the second question was more on a structural angle. I mean my sense is that I mean once initial cloud adoption happens, production and transformation, the speed at which the spends are growing, probably the speed will come down. So I wanted to get your understanding on that. Yes, just 2 questions.

Sure. Just so that I'm not answering the questions, I want to pass the billion dollar question to Arun and then I'll take the other question in terms of the cloud angle, and maybe Umang can add to that as well.

So again, as we mentioned, I'm audible?

Slightly lesser.

Am I audible now?

Yes, this is better.

So again, it's me, right? Yes. I mean, it's -- again, it's a journey. And I just showed the financial number. We have grown at a good CAGR last 5 years, both M&A and organically, the journey continues. Definitely, you will see good organic growth coming. We believe we are going to lead greater than what industry is growing at. That's the target internally. We don't give guidance unfortunately, but the expiration is $1 billion in next, as alluded into early part of -- second part of the next ticket. But however, at the same time, what is important M&A is going to be more focusing upon the capabilities and in the U.S. specifically to start with, gradually, we'll be getting into U.K. and Europe market as well to fill in the gaps of both clients and the capabilities as we say. The growth is going to come as a combination. And it will be really difficult to say what percentage will be organic and what percentage will be inorganic. But you can go by organic growth at least more than what industry is going at.

And Umang, maybe you can add on the cloud sort of journey and I can...

I mean, as far as the cloud opportunity is concerned, I think we're still very, very early days. So just by Oracle numbers, they're still sub 40% in terms of the conversion. There's not even 40% of the customers have migrated. And this is only the e-business. PeopleSoft and JD Edwards, the numbers are very, very low probably in the 20's yet. And so the headroom for cloud conversion is still getting the more mature end-to-end customers are now coming to play in terms of specialty supply chain, the manufacturing ones. We're now getting into those cloud migration discussions. So I think there is enough for another 3 to 5 years. I think there's no question of any slowdown in terms of net new cloud migration projects coming in. Plus, like I said, we are also building this CES capability, right, the cloud enhancement services because the cloud gets upgraded every quarter. So there is going to be constant business. The implementation is just the beginning of the journey, you need to continuously enhance the product, work on making sure that you're getting the maximum ROI out of it. So I think it's both for. So the journey is clearly -- I don't see any visible end to it. It is definitely going to continue for the mid- to long term.

And while we've talked about cloud migration, the innovation that happens once companies move to the cloud, right, whether it's Oracle or whether it's Azure or AWS, that's a bigger opportunity, too. And maybe, Abhishek, you want to add a little bit in terms of once the customers have moved to the cloud, that's where we are working towards building solutions and next-generation capabilities.

Exactly. I think getting into the cloud is a start of their digital journey. And that's what we're calling as customer for life. So there are enough and more surround services that are needed. And that's the exciting part that right now, we are onboarding a lot of customers with our cloud capability, whether on-prem to cloud or just the native implementation. But the requirements that they have, it's the start of their digital journey. So that's where the capabilities, the digital capabilities come in handy. So whichever were you dissected the core demand in the cloud space, or the surround capabilities and hence, the customer for life. It's here to stay.

So as an example, I mean, I think just to make sure that we're -- I mean, you heard some of the examples already, but let's say that the customers moved into Oracle Cloud or Azure or AWS. The next step for them is making sure that they're delivering new functionality and solutions to their customers. right? So in the case of a provider or a hospital chain, that would be for the patient, right? When it comes to the government work that we do, that will be for the citizen. When it comes to the retailers, that will be for the consumers. And providing these innovative solutions, whether it's customer onboarding and financial services or its patient experience, these are the capabilities that would require a lot more development work. So this is what's called cloud native development. That happens only once the customers have moved into the cloud. So we believe there is a room here, not just in migrating to the cloud but also innovating in the cloud.

Understood. Yes, sure. And just an extension to this, I mean let's assume that the cloud spend adoption is close to $100. I mean is the cloud development spend more than $100 or less than $100? If yes, by how much?

Yes. To be -- the verdict is not out on that yet. The reason is roughly 45% to 50% of the customers that we track at least in our space, have moved some part of their portfolio. In some cases, their entire estate to the public cloud. But in some cases, they're just catching up. Many of them accelerated that during the pandemic because they realized that, hey, you know what, if we don't do that, right, we will be left behind. So there's a lot of customers who sort of accelerated that journey. And the reason I say the verdict is not out yet, is because they're just starting to reap the benefits of that cloud movement. And the new solutions that I was talking about, the cloud native development, earlier someone alluded to the low-code development. These are things that have just started happening in the last 2, 3 years at scale. So I think the services opportunity on that, the reason companies like Pega or OutSystems or Snowflake or some of these newer providers are coming to play because what you saw in the infrastructure wave 20 years back and the applications wave 10 years back, you're starting to see that in the data wave, right? So all those things are coming together and you amplify that through automation. That verdict is not out yet. I think the services opportunity will be much bigger over a period of time, but it will take a few years, right, for it to all come to fruition.

This is Amit Doshi from Care PMS. Congratulations on the great journey. I think for an investor like me, going to Ahmedabad meeting Abhishek, Sudhakar and Ashank and coming here, it's a different journey altogether. So I must congratulate every Mastekeer. Coming to questions. I think first question probably to Abhishek related to the U.K. business. Historically, before Evosys acquisition, the challenge for the Mastek was the organic growth. U.K. itself, of course, we always had a very strong presence in public sector. You mentioned in 1 of your slides that 50% of the Oracle in U.K. is in public sector. So what will -- and second, you mentioned about this U.K. private business ticking up to the next level. So what do you believe has changed from the last 2 years that you believe that there will be a great organic growth coming in the U.K. space, U.K. business?

Thank you for that question, and thanks for tracking and being with us all along. It starts first with what capabilities you have. Instead of boiling the ocean, first, you look at what do you have within and what can you scale? And that's why we shared the assetization of our capabilities as a simple example, that takes us from one customer to many BFS customers, the fraud detection and fraud prevention part that I talked about. So that's the first step. The second one is the fundamental transformation of the organization where we were order takers going there and having customers -- discussion with customers of what's the opportunity versus now working with the Avaya CIO organization working with the business and what's the business problem that we can solve. For example, retail customer needs their wholesale customers to -- our retailer needs its wholesale customer to onboard faster. That's their business problem. Our delay in that is a revenue leak for them. That's what we are solving as against providing another 2 more devsecops or 5 data -- or 5 testers. That's another change that has come into the organization. And third and most important one is U.K., Ireland and Europe as a geography. Oracle is strong in public sector, but it has got 18% of its opportunity in BFS, 9% in retail 8% in telecoms and media. This is just the U.K. data and then Europe, led by manufacturing and BFS opportunities. As we are succeeding in Europe and as we are succeeding in commercial industry, as Oracle calls it, that gives us the opportunity to bring in our digital services in this space. And last but definitely not the least, which is fundamental, is building your sales team based on the vertical capabilities, vertical focus, architecting capability that you do the discovery work with the CIO, give them the confidence, the skill that we have delivered in public sector gives confidence to the enterprise customers that, yes, you have done it at scale consistently over 30 years with them, you could do it with -- in their estate as well. So these are the things that are changing, and we are leading with the conversation to give them the confidence. We just landed a Fortune 50 customer.

The second one, while Hiral did talk about $1 billion target. And of course, that would involve a lot of capability building, a lot of go-to-market steps that you'll have to take -- so how much margin are you willing to dilute from the current levels to get to reach to that $1 billion target, which is far higher than the CAGR growth that we saw Mastek for last 5 years, which includes one of the acquisitions as well.

Yes. So -- and I'll start and then Arun can add. But as we look at this journey, right, we -- even in our annual report last year, we said that in the early part of the second half of the decade, right? So second half of the decade for us is '25, '26 fiscal year, right, which is 4 years from now. So in that early part, we want to get to a $1 billion run rate, right, which is basically $250 million per quarter at that stage. The margin story has a few different components to it. One is based on our cost structures based on our fixed leverage that we have based on our people, our entire infrastructure, but there are some elements which are changing in the new scheme of things. When we say value-based delivery and when we say dividing on business outcomes, we are really meaning it. And what that changes is that it changes the conversation from the rate card you're saying, "Hey, what value are you willing to commit.? So we believe that the margin conversation does not have to be a linear conversation saying, hey, this is my cost of people. And this is the price I'm getting, and this is the rate card. So that is 1 aspect of it. The second aspect of it is that while we continue to industrialize some of the assets, the lessons learned, the integration of the teams, the go-to-market. The same thing happens on the delivery side. So Narasimhan and his team are going to drive a completely new charter on delivery transformation. As we look at automation, as we look at tooling as we look at assets, which can actually industrialize delivery as well, right? So that's another kind of margin lever. Having said all that stuff, right, the growth aspiration that we have, the potential M&As that we will do will come at different margin levels. And in the foreseeable future for the next 12 to 18 months, we've communicated this in many different discussions and analysts and investor calls that we'd like to keep it at a 20% range for our operating EBITDA. If you fast forward 12, 18 months down the road, it's very difficult to predict the competitive landscape because the reality is that we're getting into a much bigger league when it comes to some of these larger deals, some of the larger enterprise customers. So we basically said we're comfortable in the high teens right, and towards the range of the 18% to 20% mark. And that gives us about 2% to 3% flexibility when it comes to operating margin. But in the foreseeable future, we want to keep it at the 20% range. Arun, do you want to add anything?

Absolutely. As Hiral alluded into, there will always be leverage. Well, definitely, we need to invest for the future growth. but there are multiple operating levers like some of them I spoke about. So there will always be a balance yes, 20% is the guidance which you are looking for as our internal target in terms of operating EBITDA. And as time goes by, we'll discuss more how is planning coming along.

The last one probably. Do you believe that Middle East business has saturated because quarter-on-quarter, what number that we are seeing is something which is -- seems to have a bit of a saturation. So that was one. And second, as far as U.S. is concerned, of course, now we are targeting from 17% to 33% market, I mean a share in our Mastek's revenue. So prior to One Mastech, okay, so what portion was [ Evosys ] catering to? And what portion that we are targeting as a U.S. market? So if those 2 questions can be answered.

Can you hear me well? All right. So this -- so as far as the Middle East business is concerned, so we are taking a very pragmatic and strategic due to our Middle East business. If you look at the historic Middle East business, we still almost run 20% to 20% of Oracle's business in Middle East. So we are the dominant partner that Oracle had, which meant that we got a lot of customers, tons of customers coming in left right center. And as we expand globally and as we really start delivering mature businesses, I think our focus in terms of doing or having a long tail is really going down. So we don't want to consistently have a long tail of small customers and where they're not able to deliver value or repeat. So what is happening in Middle East is we are realigning our market focus to pick up high value, high margin, high potential customers, and we are letting go some of those long-tail businesses. So it is more like a realignment rather than a saturation. The business in Middle East is definitely going to pick up. The data centers have now been established. The Middle East is going through a significant growth in itself, Saudi has like plans of really turning on the growth engines in the region, and it is more than 50% of Middle East market. So Middle East is going to grow. But our business plan, at least for these last 12 months and for the forseeable a couple of more quarters is to reorganize ourselves, take off that long tail, focus on the right deals and then accelerate back again from there. So it has been -- it's a very, very calculated planned step in terms of moving to the right kind of deals and customers in Middle East. So that's as far as Middle East is concerned. The second part of the business, North America was around 1/3 of our business as far as the Oracle services is concerned, already. And we are seeing -- so we were doing tremendous growth as far as our Oracle business concerned. The Oracle business was literally growing almost 80% to 100% already over the last 2 years. And we -- with the new focus I really don't want to go into a breakup of Oracle on Oracle. That's exactly what I want to avoid. I want to talk about an integrated single business. So historically, yes, we were growing at around 80% to 100% on Oracle. Oracle will grow, but our intention is to grow Oracle as an integrated business focus only.

And just to add on Middle East. I think while historically, our primary business was Oracle on the apps, right, which is ERP and HCM and supply chain -- we've actually moved a senior leader with digital services background. So we're starting to see ServiceNow opportunities, Microsoft opportunities, cloud development opportunities in the Middle East as well. So part of this account mining focus is to sacrifice some lower quality revenue, but focus on some select accounts that can take us in the future with a lot more deeper account mining across different parts of Mastek service.

Sorry, if I can add one more for Arun. What portion of the revenue you believe the growth would be going to the price escalation? And second, do we have -- do we plan to have any fixed dividend payout policy? That's all from my side.

So again, price escalation is a part of again, some of them are part of the contract. As you know, a lot of wage cost is going up, the headcounts, the resources, people are becoming much more expensive definitely, that gets factored into the new rate cards at least whenever you go and compete in the market, all competitions have changed their input costs. So we also go by that with the existing client, we are seeing industries going in the range of overall, if you're taking the new clients and the existing client, 5% to 7% is a range, which is -- I mean [ ISG ] is talking about, right? In case of niche, digital transformation and next-gen technology could be in the range of 10%. But broadly, that's the range which industry is seeing. And when we are talking to our customers, they are also open minded. Some of the contracts you can't do, which are fixed price contracts, but a lot of T&M contracts, which comes on renewal on an annual basis, the customers are open to have those conversations with us. Coming back to the dividend, yes, as a company, so there is no specific percentage. But currently, if you see last 2 years, we are in the range of 19% to 20% of PAT, which we are giving, our endeavor is to maintain However, if there is more M&A requirement, there's more fund requirement, where we believe there can be more EPS accretive as the value creation for shareholders, we'll come and talk to you all.

Yes. This is Varun Goenka from Value Quest. And obviously Abhishek move from the finance side to the operating side last 2 years. Congratulations on these, Abhishek. So my question is the basic fundamental Oracle side. If we see globally, Oracle lost out completely on the cloud boards. And recently, they seemed to get very, very aggressive announcing measures against SAP and the 2025 event of Oracle and SAP going completely off-prem and moving to cloud, they're going to even withdraw support. So my question is what exactly is Oracle's right to win? Because within the Cloud walls, AWS and Azure are clear dominance and Oracle has not even got to double-digit market share yet. And given our significant revenue linked to Oracle, how is this aggression of Oracle really helping implementation partners or vendors like us and our future seems to be predominantly linked to their success, at least for now?

So Umang, I can start and then you can add. The definition of our cloud business I think needs to be clarified, Varun. It's a very good question. And I think it's important to understand that when it comes to cloud, there is infrastructure as a service, there is platform as a service and there is software as a service. And there's data elements that are embedded in there as well, right? When you hear the market share domination of an Azure or an AWS or even a Google Cloud, that's primarily on the Infrastructure as a Service to some extent on the platform. That's the majority of the infrastructure moving into the cloud. The business that we are currently focused on and which is bulk of our business is actually on the SaaS portion of the cloud vertical stack. So this is where cloud ERP, cloud supply chain, cloud HCM, cloud EPM. And in that space, I've spent 27 years in the U.S. market. And I've seen SAP and Oracle very, very closely. These are the 2 large ERP players. There is a few smaller players, but these are the 2 large stronger players. And compared to SAP, the journey that Oracle has taken when it comes to cloud in the SaaS world is much, much stronger and is much more mature. Most of SAP's SaaS business has not moved to the cloud other than the acquisitions that they have made. They have made acquisitions like SuccessFactors, which is cloud-based. But in the case of Oracle, that journey started about 7, 8 years back. And the journey that we are on is in that SaaS business. So I just wanted to give that context of the place that we are in when it comes to cloud, and Arun can add on top of that.

So that's very true. And as far as that SaaS business SaaS business is concerned, Oracle clearly is the dominant player. So first time in Oracle's history between the Oracle SAP compute, SAP clearly was the leader as far as the on-premise days were there. Now if you look at any analyst chart, be it Gartner, Forrester, IDC, whatever. Oracle leads the chart hands down. As far as the SaaS business is concerned, and therefore, we are quite keen on the Oracle business on the SaaS side, which is where we are associated. As far as the SAP compete business is concerned, which is where we are really prominent, and we are 1 of the key partners. In fact, the only partner listed on Oracle's website who does SAP compete with them. If you look at the product conversion, so SAP has S/4 HANA, that is their premier cloud product, and we are doing the Fusion's Applications cloud. As the public cloud conversion of S/4 HANA is really low, most of them are private cloud setups where you can move your infrastructure and you still run. We think the business is going to be eventually public cloud. That's where the rail cloud transformation comes in. And the cost of transforming and we have come across a variety of deals. We've done a lot in the U.K. public sector, where we have SAP customers who have migrated to Oracle Cloud with our assets, et cetera. Just the sheer cost difference of migrating or upgrading to an SAP cloud versus an Alt cloud was anywhere between 3x to 5x. So not only is the product better right now on the Oracle side, the pricing is also a significant differentiator. And usually, the anti-incumbent of having an ERP, which add tons of customization, SAP having a really complex licensing model, et cetera, et cetera. I think in my view, the ball is really tilting towards the Oracle side as far as the convergent battle goals. And that is why Oracle really aggressively flashing out saying that okay, we have converted x number of customers from SAP to Oracle and a large number of those conversions have been done by us. So I think it's -- it's a really good time to be in the Oracles corner as far as the SAP Oracle compete is concerned.

And because this is such an important question, I want to add just 1 more thing. So now in that SaaS world, there is front office, middle office and back office. When it comes to back office, we're talking about ERP, we're talking about supply chain, we're talking about HCM. And there, we are very clear that our strategy is anchored around Oracle because we have domination and because we have differentiation that Umang talked about. But when it comes to middle office and front office, we are opening up our avenues to at least about 4 or 5 other key strategic alliances. Microsoft, you heard that a couple of times, but we are doing some very cutting-edge work when it comes to cloud native development, power, automate and power apps, which are also built on cloud, built on Microsoft Azure Salesforce when it comes to the entire customer journey from sales, services and marketing, this is all in the front office. Pega, which is the confluence of intelligent automation and customer engagement. You heard Snowflake earlier, which is an area that we are looking at when it comes to the data cloud. So Oracle, while we will anchor our capabilities on the ERP, HCM and supply chain, and we believe there's a lot more headroom to grow even there. But when it comes to front office and middle office, there are some other strategic partnerships, including AWS and Azure, where we will build capabilities on those hyperscalers. And that's how we will diversify and make sure that we are addressing the entire cloud potential across front office, middle office and back office.

Sure. Another question on the product platform business that you spoke about, even the miniscule today. What is the kind of investments that we envisage in the next 3, 4 years because it takes generally 5 to 8 years to really have some scale and get to some kind of profitability.

Yes. So another good question. And happy to chat offline and Ritwik is here, so he can walk you through some of the direction out there as well. But at a headline level, we're not trying to build a new product, and we're not trying to create a brand-new platform. We have existing assets, Abhishek alluded to the fraud analytics and the fraud management. We actually have some assets in those areas already. What we see missing is certain process gaps, some technology elements and some partnerships. If we bridge those gaps, we believe those assets can get amplified into a platform that can get monetized. You heard also about leasing and asset leasing management and the vehicle leasing. We already have built assets in there. We just not monetize it. Even in the Oracle world, there's a couple of assets. Actually, there's about 15, 16 of them that's built on Oracle Platform as a Service, but 2 or 3 in particular, the workforce scheduler, the time tracking system. These are examples of assets. There are some industry accelerators that we've built in. But if we combine some of the process gaps and technology gaps with maybe some start-up partners, we believe we can take these existing assets and monetize them into a much more innovative led platform business. So we're not talking about starting a 5-year multiyear journey. Some of these platforms will be launched this quarter. right? And some of them will be launched later this year. And we believe that as we look at the next 3 to 4 years, customers are expecting some of the stuff. And we being a business solutions DNA for a long time, have some of these investments and capabilities already. Having said that, we'll have to do some more investments, and we've kind of baked that as part of our 3, 4 years plan.

Just a final clarification. Given our hands are so full, and we have so much to do in U.K. and U.S., would we consider sometime exiting Middle East given return on time or return on capital would be much higher in U.K. and U.S. in terms of management bandwidth or?

Yes. So maybe I'll start and Umang can add. See our Middle business is actually very strategic. So my request to all the investor community in particular, is to look at it a little bit more holistically. And the reason I say that is because have actually built a business, which differentiates not just in the Middle East market, but helps us across the globe. A lot of our initial graduates a lot of our initial employees who joined the organization, get their first projects executed in Middle East. A lot of very senior leaders in our Oracle business actually did their first implementations in Middle East. And we see the same thing even today, where we are leveraging that experience. And once they spend a couple of years in Middle East, we are actually moving them into the U.K. or U.S. markets. So for us, it's an extended engine for grooming talent, Now having said that, we are doing some very, very cutting-edge work in particularly financial services, hospitals and health care and manufacturing areas. And that industry capability that we are acquiring in Middle East is also going to help our vertical cloud differentiation. So I wouldn't look at Middle East stand-alone just because the growth numbers are not comparable. -- by design, like Umang said, we are exiting certain accounts because we want to focus on higher-quality revenue. But there's a whole lot of differentiators that we are getting by being in that geography and Umang you could add..

You put it very right. So of course, Middle East is a key -- really key part of the jigsaw, right? If you take that out of the business, for example, when we went through the phase of high aggression, just that we had a strong Middle East business. It allowed us to deliver well in U.K. and U.S. because we could easily shuffle people around even those times. Two, from the Middle East business standpoint by itself and Mrinal explained the overall [indiscernible]. I think we have a really strong market hold, the diversification from a geography standpoint in a market where you have a stronghold and letting go, I think would be not so wise on our part. Yes, we need to relook at what kind of revenue that we're acquiring from that market. And that is something that we are thinking of. But the market is definitely the hub from a variety of standpoints. Like, for example, we build the Oracle relationship. It is the starting point for our ServiceNow relationship. It is also the starting point for our Snowflake relationship. A lot of things happen in Middle East, which then we take forward. So that market, we have a really strong customer hold and therefore it allows us to build many of these capabilities out there first. Two, like I said, if we correct our current positioning and leave that tail aside, very soon, you will start seeing Middle East deliver phenomenal growth. And if you look at from the Middle East markets, I think the world is going to change very soon. Again, especially with Saudi kind of investment that they're going to make in terms of recreating the city and recreating the country. In a few years' time, we will be very happy that we continue to the market that is phenomenally changing and growing. So I think it's a market for where we have to stay both in the integrated stand and as well as in the stand-alone market point of view also.

Before we take the next question from Denis here. I once again would like to remind our virtual participants. All you have to do with a very simple process. Under the media plan, there is an audio question button. So you can record your question and then we'll play it for our leaders here. So please make the most of this platform and the opportunity. Back to our participants here.

Pankaj Shah from [indiscernible]. So my question is mainly towards U.K. government business. U.K. public.

If you can speak up a little bit.

Yes. So the question is towards U.K. public sector business, where we have seen in the past that because of elections or the political volatility, there's a freeze on spending and even the existing projects get delayed and the fresh projects also doesn't come in. So how big risk is this? And how do we see this?

Thank you for that question. It's the progression that we have made over a couple of years that gives us the confidence. It happened in 2019 with Brexit when there was a complete policy and governmental what you call as an -- a better term paralysis. The government of Theresa May was going to stay or not, what kind of kind of Brexit would the nation had adopted, soft or hard Brexit. And hence, there was a bit of a slowdown there. At that time, we were operating on the periphery of many critical programs. Over the last 2 years, we are now at the core of it, which is fairly insulated. So no matter which government comes in, no matter what policies you ought out. These are the programs that have got funding support from the parliamentary approval process. So it's fairly insulated. The second 1 is we ourselves have matured over a period of time that we are now participating in the critical part, not just on the process or the project that we have got. But we are aware of the whole journey where it is going, hence, what do we need to do to be prepared. For example, the Home Office, GBP 50 million engagement or GBP 52 million engagement that we just signed for 3 years. This was a plan that we executed over the last 12 to 15 months knowing fully well that what we would have done on the biometric side would yield opportunities. How do you get ready for it? The same story applies on, let's say, NHS digital in particular, where the last 6 months successes have come in. So it's the maturity of the organization of how you are playing. And if you saw the slide which talked about the advisory board, there are a couple of other advisers as well who provide us with that insight. So we know how it is progressing and how do you need to get prepared. For example, we are running the campaign right now to align the revenues and custom side, how do you expand there? We have landed there, but we have not expanded yet. So I would say it's plain and simple. It's a very mature customer. It's a very sophisticated customer, pays on time has got everything of strong governance established. We now know a lot better than what we were in 2019 to work it and expand it.

Okay. And some more color on the acquisition side. I just wanted to understand how aggressive are we planning to be or how closer are we for an acquisition? That's all.

So Pankaj we'll obviously keep you posted as we make progress. But we definitely want to do at least 1 acquisition this year. The initial focus is going to be on the U.S. market. We are looking at multiple areas that we talked about, but in very focused spaces. And I think that $20 million to $50 million kind of revenue size of customers is really what we are focused on. I think in the next 2 or 3 months, we should be in a position to hopefully announce something. But it's never done until it is done. And we have a very rigorous process when it comes to both qualifying evaluating as well as doing our due diligence with these M&A targets. So it's tough to predict, but we're moving in the right direction.

My name is Vikas Kamani from Carnelian. My question is more macro. And first of all, congratulations on such a great journey and a great insightful session. My question is more at a macro level. I think from all the macro indicators, U.S. is more likely to get into a stagflation kind of environment. Inflation is catching up, interest rates are going up. And typically, in this kind of scenario, if suppose -- and we don't know what will happen, but if, let's say, probabilities are higher on that side, based on your experience of being in the market for so many years and interaction with the client. How do you say this time is going to be? Do you think the demand environment can slow down? I mean, of course, journey now looks very good. But if that were to happen, what would your take be given the fact that our -- U.S. is also a very, very critical part for our growth.

It's a good question, Vikas. So if you take a look at a few of these cycles that the global -- I mean at a global level, but particularly in the U.S., there have been times, whether it's a financial crisis or even in the dot-com booms, you take some of these kind of cycles, there are elements that kind of all fit together, right? When there is pressure on margins and prices, there's more cost optimizations that are needed. So that creates opportunities. When the economy is doing well, which it has been in the last few years, there's more innovation that happens. When it comes to market share grab, when companies are changing and reimagining business models, people want to move towards cloud and digitize their operations. So each crisis has created opportunity. The second aspect of it is that because of the macro level uncertainties, right, whether it's inflation and wage costs and supply chain challenges or even just worker challenges or even the unfortunate war that is happening, what that leads to is that some customers become much more cautious, rightly so. But when customers look at transformation, they're looking at large transformations. And they look at it and say, "You know what, we don't want to do all this together. We don't want to take our entire real estate and hand it over to 1 particular vendor or a partner." That's actually a good thing for us, because if they did that, then we may not be the best partner. But what customers are looking at right now is they are breaking up their overall spend and say, "Hey, let's look at certain areas and let's phase this out. Let's look at maybe a front office area or developing a particular platform capability." And when it comes to best-of-breed partners and looking at how they can co-work with system integrators like us, they are breaking down larger budgets into smaller numbers. While we have aspirations to grow into the large deal sizes, which we are already doing relative to where we are, some of the customers are saying, "Hey, you know what, instead of spending this entire $100 million in 1 shot, let me break it up into 5 phases. And even that, let me pick a best-of-breed partner who I can work it in 1 particular area." So to us, that's an advantage because we become a much more strong challenger to convert it. So yes, there will be challenges. There will be some of these cycles in the U.S. We will have to be very focused, and Umang walked you through the entire differentiation strategy, our go-to-market, our cultural kind of mindset change. In the industries that we are focused on and in the sweet spot that we have, we believe there is a lot more headroom, even with some of the uncertainty and challenges that we have in the market.

Is it fair to assume that in your aspiration of $1 billion, you assumed taken care of the headwinds in the macro environment, if at all, if it happens. And you would probably gain market share. Your size is very small. So is it fair to assume that?

See, the window that we have in the next 3, 4 years irrespective of how the markets will get challenged is really a growth window, right? Relative to some of our peer groups and even our mid-cap providers who are larger than us, we are still relatively small, as you know. So we have a growth window here over the next 3 to 5 years, which is a massive spend on cloud and digital independent of the market crisis. Now of course, some of those challenges might slow down some of the spend. It might delay some of the decision making. It might repurpose some of the areas that customers are investing in, right? But we believe that the areas that we are in is much more modern, transformational, innovative areas that are not just optimizing their spend but also helping them transform. So we feel comfortable that we're in the right spaces to grab some of that market share. It's difficult to predict quarter-on-quarter what will happen. But we feel that we have the ingredients to take on some of these channels.

Mohit from Anand Rathi. Just 1 thing on the U.K. side. U.K. private, we haven't discussed enough. So what is happening there? Because in our spreadsheet, when we do this U.K. breakup, you guys are the dominant players on the public side. But on the private side, it appears weak compared to the peers that we have. So what are the plans for the next few years on U.K. private side? And connected question is why are we going to European side while not covering U.K. private in totality?

Thank you, Mohit. If anyone knew it better, that would be only you. That said, I think the start of the U.K. private sector journey is about the focus that we have bought. Last year was about building the sales organization, identifying the capabilities that we had and establishing the reach, deciding what is it that you want to sell and where is it that you want to sell. And the green shoots of that are clearly visible. I mean we did rush a bit on that slide, but it's not for want of depth. For example, the vehicle leasing space which then backward integration would be the asset leasing space. You start with that, the EV revolution gives you a phenomenal opportunity. Lex Leasing, Zenith, these are acquired by Lloyds Bank now, and they are now coming up with multimillion re-platforming opportunity that NASDAQ would have the opportunity to participate in because it built it in its first [ avatar ] 7, 8 years back. The anchor customers that I have in that space gives me the right to actually expand that. So this is how you are identifying your capabilities in the private sector space. The European part of it that you alluded to is independent. It was driven by the SaaS relationship that we had with Oracle, and we had some good growth, both in terms of order booking as well as revenue. It grew pretty fast in the last financial year, which gives us strong confidence that we can expand it with the Oracle's ambition and the amount of investment that it is making in that market. If you bring in your digital capability with land, Oracle or SaaS capability, expand using digital capability, you are not going to go through the discovery phase that we had to do in the U.K. business for private sector. So that's why Europe is the focus, but that does not mean that you're not doing it in U.K. We're doing in the Europe right from the word go. When it is pretty nascent, it is sub $10 million, you're doing it there right away. So that's why we are doing it in an integrated fashion in Europe. And in U.K., these assets are identified, sales teams are built, and I would like to believe that next financial year it should be a lot different.

Europe is on the -- will not be on the public side, right? This is more on the private side?

At this point, it's completely enterprise side.

Enterprise side...

And Mohit, just to maybe clarify there again. See, the European market, we're not going to go after all the different countries as well, right? We're going to be very focused on some parts of Nordics, certain places like France and Netherlands, where Oracle is actually taking us as the preferred partner. And the reason this is important is our sales cost and the investments that we need to make, obviously, are not going to be that large, and we are going to be able to get pipeline as a result of that. Now having said that, our U.K. infrastructure, when it comes to presales, when it comes to solution building, when it comes to people and architecture, can be leveraged in those English-speaking markets, particularly Netherlands and Nordics are English-speaking markets where we've done some good projects. Some of the accounts that we've won, whether it's Arcadis or Exide, actually our global accounts, which have presence in U.K., which have presence in North America as well, but they started in Europe, right? So there's some interesting kind of dynamics there in terms of, again, a very sort of selective and focused approach towards the broader Europe market.

One for Umang. So would you continue to look for Evosys growth? Or like we will be asking someone else like who is handling Evosys growth? And the second thing is on the U.S. side, like as we remember -- if I remember correctly, during the Evosys days, a few years back when you integrated, U.S. was not a strong piece for Evosys at that point in time. But today, you spoke about 33% of the business coming from the U.S. Those -- like U.S. has grown really fast for Evosys in the last 2 years? Or this is the total number -- we are not comparing the right numbers there?

So the order book numbers of U.S. have been growing really fast. We had invested quite early on. So when we integrated, we had, those years, made those early investments in sales. We had also acquired a small entity called [ Newbury ] at that point in time. So we had gone through those investment phases early on. The order book numbers of U.S. are close to that kind of range, maybe slightly lower than 1/3, I don't have the exact stats, but it is definitely growing substantially fast as far as the Oracle ecosystem or the Evosys business view is concerned. And like I said, we continue to -- now the forward-looking part, as far as the new structure and design of our business is concerned, we are going to look at it from an integrated business point of view. While Oracle continues to be one of our key GTNs, Oracle continues to be a key part of our differentiated solution offering, we are not going to look at it as Oracle, non-Oracle. We're going to look at it as integrated North America business. Having said that, there is a leader called [indiscernible] who is going to take care of the Oracle service lines. So Oracle is going to be one of our biggest service lines in the group. And we have identified a dedicated leader and owner who's going to run that service line with a constant focus on growing the Oracle service line from a service line design point of view. So that's the revised structure. So Oracle focus continues with the service line leader so -- who was earlier working in U.K. is now running the Oracle service line. The regional focuses are going to be fully integrated. I think our strength lies in that integrated solution or integrated offering. So we'll continue to look at it from an integrated fashion.

So Evosys -- I mean respective geographies will roll up to individuals. Some part of it will, for example, go to Abhishek from the U.K., Europe perspective, some parts will come to you.

That is correct, Mohit. And that's a very -- I think I just want to reemphasize, that's a very important part of the realignment because one of the first questions I think [ Geetha ] asked was about synergies, and we believe truly that 1 plus 1 can become 4 and 5. And that's really the integrated go-to-market that Umang is talking about. So it's not just about even adding it to 1 plus 1, 2 or 3. But we feel that there's an amplification that can happen, but that can happen only if we go at it from an account perspective, right? The customer is the unit of truth. And if we go to the account as 1 integrated 1 Mastek, that changes the conversation. And we've seen this life in many examples, whether it's U.K. or U.S. And Yash, his role is going to be critical. He's also going to be working closely with -- as part of Narasimha's team to integrate the entire delivery of Oracle as well because it's a very, very big and strategic part of our business even going forward. And there's some best practices that we have that have come from the Oracle business that we feel can be institutionalized across Mastek. So making sure that we are combining the best of both worlds and delivering that to every geography, for that matter, even Middle, right, or Europe be that place.

And 1 for Maninder as well. So are there any hiring targets that you guys are sharing for '23? I also heard 50% or more maybe higher hiring comp than what you have done in FY '22. But are there any absolute numbers that you guys are sharing from that perspective for FY '23?

So not really, but we will grow significantly because the fact is that growth is going to be our journey. So we will need people. The reason I said 50% was more about our graduates. I think we'll have to focus towards interns, graduates and that market.

So what was the number last year for graduates? I think you're referring to fresh graduates, right?

I'm talking about fresh graduates.

Yes. What was the number in FY '22?

We had about 600-plus people. So we're talking about at least 900 or 1,000 people, yes.

Second was on-site, offshore. Like do you think delivery will continue to shift more offshore for you guys? Or current is the level where you want to stabilize that? That is last one.

Yes. So -- I mean I think different parts of our business have different nuances, as you know, Mohit. There is a lot more acceptance from some of our larger customers to do more offshore work. I think the pandemic last couple of years, while has created a lot of challenges, it also created an acceptance that a global delivery model works even in very tragic and secure areas. So we do see a shift there. Having said that, I mean some of the work that we do, whether it's in the digital engineering space or the cloud transformation space, is very cutting-edge, particularly when it comes to the design, the blueprinting, some of the business analysis that we do. And so there's going to be projects that will need that high touch. And Arun, I don't know if you want to add, but in general, we feel that there is some more room when it comes to offshore ability, but we feel that we're at a point which we are comfortable with, maybe a few percentage points improvement in offshore mix can still happen in the coming years.

So Mohit, precisely 75% currently our head count mix offshore, maybe 200 bps, 100 bps as we move between private sector and public sector and get more offshore opportunity, it may shift a little bit, but broadly it's going to be similar.

80-20 is not that you guys are looking at?

It's difficult to predict at the moment. But as it evolves, we can begin to see...

Before we take any more questions from our lovely audience here, we have our webcast participants who are here. So under the media player, there is an audio question button and your questions are live, you can ask them to leaders here. So I'm going to hand it over to the operator now and let's hear some questions from our webcast participants.

We have a question from the line of Vikas Kasturi from Focus Capital.

Sir, am I audible?

Yes.

So first of all, congratulations on a fantastic year. And thank you so much for this session. It really helps clarify your strategy. My first question is, please help me understand what is our right to win vis-à-vis the big IT services companies? And what is our right to win vis-à-vis the other mid-tier IT companies? So I'm just trying to sort of understand what is our differentiation that we bring to the table. So that is my first question. And my second question is, do we have the training infrastructure to train the new batch of, say, 1,000-odd freshers that you plan to hire next year?

Sure, Vikas. So why don't we start with the second one. Maninder, if you want to take that, and then I can -- some of us can talk about the differentiation part.

Sure. So like we work in a hybrid model, we do have a hybrid structure -- infrastructure already ready. As a matter of fact, we had anticipated this growth -- we didn't know about COVID, of course. But something that we invested in 2018 was learn anytime anywhere platforms. That has helped us greatly. And just to give you a little number, because you all have numbers, from last year to this year, growth of learning platforms or learning has been at 93% at Mastek, and this is voluntary learning where Mastekeers have come up and asked for learning platforms or we've created sessions and cohorts to create upskilling and reskilling programs. So yes, if you ask me, we are absolutely geared. As a matter of fact, the ask from the business, Narasimha is right here, is to actually gear for far more than what the numbers we are sharing with you.

So maybe Abhishek and Umang, both of you can start and I can add if needed, but sort of the leading comment, Vikas is our -- and maybe Mastek is unique in a way, our right to win actually is a little bit different in each market, in each area. So we'll talk about those first and then I can maybe wrap it up.

Sure. I'll go first. And right to win, it's an interesting way of looking at it. In public sector in the U.K., if you look at it, there's barely any service providers from offshore. And that's because of the time, the delivery credential, the understanding of the landscape that we have created over 30 years. NHS has been about 20 years of our work, working with them indirectly and directly now. Home office over the last 6 years from just bagging a project to now being the strategic supplier and being called as strategic supplier, working on highly sensitive areas, which includes intelligence sharing platform. It's called Five Eyes across U.K., U.S., Canada, Australia and New Zealand to even being called upon where the large suppliers have bagged the contracts a couple of years back and not able to really deliver to the scale and us being invited over to accelerate that. That tells you the level of confidence that they have. So what we have summed it up as Mastek has been there in U.K. building critical national infrastructure, and decomplexing digital is also coming from the customer complement that we have received. We hand it over to you and you simplify it and you deliver it every time. So it's the delivery credential established over a protracted period of time. I think that would be the public sector story. Just touching briefly on Oracle, having spent some time with Oracle [indiscernible] in the U.K. market where we are #1 partner. The vertical capability, the vertical expertise that we have, where you would have hundreds of implementation experience across the sector, when you walk to a customer, you're not just implementing a platform or a packaged software for them. You're also telling them this is what you would need or this is what your problems would be, this is how you should go about it. Suddenly from being an SI, you're also an advisor, and they see the value in that. So I'll eventually go back to it's the delivery capability. And last but definitely not the least is the consulting practice that we have established over the last 12 to 15 months, where you're working with the CIO organization, it's architecture as a service, design thinking capability. The whole of NHS success is based on the design thinking, enterprise architecting, solutioning, then building and implementing and now we are enhancing it into the managing and modernizing, which is what you call as managed services. So all of it that you have done that gives customer a degree of comfort that you not only understand you're a trusted pair of hand and you have executed time and again. Umang?

I think Abhishek has very rightly pointed out. And if you just look at our last 2 years' performance history, the 2 pillars stand-alone, which is the Evosys and the digital services business, both have done phenomenally well in their respective markets, which is in the U.K. public sector and the Oracle service line, be it on the ERP or the commerce side. So within that respective spaces, we already had phenomenal differentiators, which allowed us to be the leading partner or grow towards the leading partner space as far as those markets are concerned. Now while those 2 continue, we are creating a third line, which is the integrated strength of the organization and creating those through the various parameters that me and Abhishek earlier pointed out, be it Glide 4.0, CES, the fully integrated CX solution, et cetera. I think those are phenomenal differentiators. Those are areas where our entry door capability through the Oracle as well as the overall delivery capability through our digital services and then landing and expanding through our account mining capabilities is going to give us the right to not just win but right to stay in the account and right to do much more than just winning new customers because we have been winning at a rate of about 30, 40 customers every quarter consistently. So I don't think there's a question of what is our right to win. We already had the right to win. Now we have to really figure out how do we really expand much more and that's where the integrated capability is going to play amongst the various services that are set. So that's where we are.

Yes. And I think both Abhishek and Umang covered it. The right to land, I think, is not an issue. The right to expand and grow is really the focus of the organization. And that's where you see the account mining focus. But I just sort of want to tie it together with our overall positioning. So when Abhishek mentioned decomplexing digital, this is what customers told us. And when we say Trust, Value, Velocity, that trust has not come overnight. That trust has come from 15-, 20-year-old relationships where we have continued to deliver business value. And that goes to the value part. Most of our engagements have been cutting edge. Most of our engagements have been solution-led, including the Oracle implementations, but even in the digital engineering space, we're talking about aligning to the business processes and transforming those processes in different verticals. So the business value addition. And we are small enough where we can give the attention and the focus to some of the customers that we serve, and we are large enough that can help scale to meet their business needs. Raman, who is leading the digital business in the U.S., if you rewind about 18 months back, we were working with only about 6 Fortune 1000 customers. Now we are working with 19, right? These are Fortune 1000 customers that have trusted us to do at least work in a certain area or a couple of different areas. Now you tie that together with what Umang and Abhishek talked about with the 1 integrated Mastek and the services portfolio, it lets us expand in those same customers. And the new customers that we want to land, we want to start with an integrated approach. So the large deals that we're starting to see, the end-to-end front to back office transformation that we are starting to participate in, can be replicated in multiple industries. So I think there's a game plan and there is a journey that is plotted out. Execution is going to be key. It's not going to be easy. There is going to be competition. But we feel that there's enough differentiation combining the various pockets in the different markets and the different industries, which allow us not just right to win, but right to grow as well.

We have our next question from the line of [ Sahil Sharma ] as an investor.

Can you hear me?

Yes, please go ahead.

My question is that -- just a question on the acquisition. One of the concerns that investors generally have is that the base rate of successful acquisitions overall is a bit low, around 30%. And sir mentioned having a rigorous process to evaluate acquisition candidates. Can you please share any color on like how we aim to increase the probability of a successful acquisition? And one of the reasons for asking this is because Evosys has worked really well for us. But one of the previous acquisitions, TAISTech, had not worked very well.

Sure. [ Sahil ], it's a good question, and there are various learnings that we have from M&A integration. The learnings are not just our learnings within Mastek, but learnings -- our collective learnings across the leadership teams and what we've seen in organizations even before Mastek. So those collective learnings are being applied. And again, Raman, who is leading that charter along with his team, is looking at a very detailed qualification process which aligns to our capability gaps, our industry focus and our market focus. So that said, right, the integration and the success of the acquisition boils down to 3 or 4 things. And this is, again, patterns that we have seen over 10, 15, 20 years. One is the cultural fitment. In the end, Maninder alluded, in terms of people and culture, the cultural fitment of how the organizations come together, every person has emotional attachments to the companies that they belong to. So that angle is very critical and thinking about that way in advance is important. What we typically call synergies, which is, let's say, there's an acquisition XYZ, the capabilities that, that brings to the table, taking those capabilities to Mastek accounts is 1 part of the synergies. The second part of the synergies could be, depending on the company, taking Mastek's capabilities to the -- their accounts. So looking at it from both angles on what the true potential is, in which industries and which accounts and which markets and how those synergies will get realized is another critical success factor. The third factor is about measuring and staying with that integration in a focused manner because there is an approach that you can take saying, "Hey, you know what, we've thought about the synergies, and it will happen." But in reality, that's not the case. Even with a very, very successful Evosys acquisition in terms of our combined growth, we would still all agree that there would be areas that we would do differently if we were to do it together. And we're taking some of those learnings and applying it to our synergy plan and our integration plan even before we make the decision on the acquisition. And last but not the least, it is betting on certain platforms and certain areas which are future-proof. We are not trying to look at legacy companies who have had their run. We ourselves are doing majority of our business in digital and cloud services. So the companies that we are looking at are future-proof companies, which can give us the amplification for a few more years to come, whether it's in the digital market or the cloud market. And that is very critical. So platforms like Salesforce, platforms like Pega, platforms like Snowflake are the areas that we're looking at, whether it's Microsoft, Azure and AWS. And these companies have leg room to grow. And we are also looking at innovative partners beyond acquisitions. We might even make some investments in certain companies, which we may not want to acquire immediately, but over a period of time, we will jointly partner with them in the go-to-market and with certain accounts and then decide over a period of time whether to acquire. So these are some examples of the rigor that we are applying even before we make the acquisitions. So hopefully, that answers, Vikas (sic) [ Sahil ]. Anyone wants to add? Just maybe 1, Abhishek wants to add. Go ahead.

So the 1 critical factor that would make a difference is today, we have done the homework and we know how to grow those companies. We know which areas we want to get into. So whether it is Salesforce or any of the areas, hyperscalers that we have talked about. We're also talking about how we will work with you to grow. All the traditional areas that we talked about, there is a clear business plan of what you will bring in and how you will -- we will contribute to your growth, which gives the target organization a very clear view of stuff that they weren't able to do it on their own or why they thought they had matured in their journey and how can someone who's acquiring would help them grow. That makes a huge difference with their decision-making as well.

I now hand over to Himanshi for further proceeding.

Yes. Maybe we will take 1 more question.

Yes, sir.

First of all, congratulations on such a fantastic performance. I must really appreciate the hard work that you guys have done, especially in a very competitive scenario. What I've seen is a fantastic quality of work that you guys have done, the great amount of client base that you guys have built, the consistency of the performance and the financial indicators that you have kind of delivered quarter-on-quarter and the depth of the management team. So really speaking, it's a very transformed Mastek that I'm seeing today compared to where I was in Mastek around 6, 7 years back. So I have just a couple of questions, and I'll leave it to Hiral or anybody else to answer it. You're really dependent upon how you're pushing your sales guys to deliver for your organic growth. Let's leave aside the inorganic targets that you have. Can you give some kind of color on the quality of the pipeline that you have? I know you will not be able to give an exact number of what the pipeline stands. But can we get an understanding of how has that pipeline moved in percentage terms growth compared to last year? What's the kind of breakup between your business from the existing client and new client? What we have seen in the past is that there is lumpiness in the order booking and order backlog, and that comes from Abhishek going and closing a large elephant deal at points of time. But can you tell us what's the kind of base of new clients that you're building? And how are your sales guys targeting to do that? And in the marketplace, when you have a win/loss, what would be the reason that you would lose a deal? Because I'm assuming that you've now got a complete suite of solutions. You are competitive in terms of pricing, then what is the key reason that you would lose a deal, okay? So that's 1 part of my question. My second part is to Umang. And Umang, I think you did a fantastic deal with Mastek with cash and stock option and I'm sure you're happy where you are today, okay.

Aren't we all?

We are all, okay. So Umang, question to you is, how do you look at your stake from having now done the earn-outs? How do you look at your stake as remaining a long-term investor in the company or your expectations to kind of monetize that because you want to move on to something else? So what's the kind of plan and thoughts you have, especially?

So why don't we start with that question?

Do you want to hear the answer too?

I also am very curious, but why don't we start and then I'll take the second part of the -- or your first question.

So I think, Farid, the transaction, the way it was built day 1 was with a long-term interest. You don't build a transaction where you have a substantial portion of the value sitting in stock unless you have a long-term interest in the organization. And I think that's been our thought even from when the transaction happened. It has become even more strong as the cultural people integration, the ease at which we are working, the ease at which we are seeing growth together. So it has grown even stronger. So our interest was always to look at -- be a part of owning the company, putting the skin in the game and then growing and reaping the benefits if it works out or taking the beating if it doesn't work out. So that, I think, was always the intent, and that continues to be the intent from where we are looking at it. And even more now, since we are running an integrated Mastek, like I said, some portion of the earn-out is over, we are now looking at this in terms of a fully integrated right from sales to delivery to operations were already integrated. So I think, clearly, it is much more actively ingrained in terms of what we are trying to do and trying to build for a larger, stronger Mastek is what we are now looking forward to. So first of all, thank you to all the investors, to all the shareholders and my fellow Mastekeers for the success that we've all had. We definitely had a good run and successful M&A. But that's definitely the beginning of the journey. I think there's a way, way more that we could all do and this is just the start. I'm sure with the North America and EMEA as 1 region, but closely working with Abhishek, Hiral, Arun, Maninder everyone to see how we can really turn this around. Like I said, we're still a 40-year-old start-up, which means there is a significant headroom that we have to achieve. So that's what I'm looking forward to.

Great. And just maybe a couple of things here, while we have great respect for Umang and Rakesh and Yash, but there's a super talented team that came with the acquisition, Farid, as you know. And part of the integration is integrating the entire family together. And we started this a few months back where the leader who managed the global workforce and recruiting in Evosys took a role in the broader Mastek organization to run global workforce management across the globe for Mastek. And since then, we have got multiple people, some have moved from Mumbai to Ahmedabad, some have known from Ahmedabad to the U.S. or U.K. Some have moved from Middle East to U.S. And these are role changes of people who want to do more, right? While they came -- some of them came from an Oracle background, many of them came from a background which is much more diverse. And they are now seeing an opportunity from a career perspective and from a growth perspective. So it's about looking at the path of the entire organization, and that's really what's exciting. I will try and make my answer to the first question that you had quick because officially, we're out of time, but happy to chat. It's maybe coincidental, but the last question is from ex Mastekeer. And as Maninder always reminds us, once a Mastekeer always a Mastekeer. The journey that we are on, I think the sales and our field team, while that is a critical part of our success and pipeline and some of these numbers are important, but I don't want to underestimate the impact that our delivery organization makes. Each person who's involved in the account actually contributes to that growth. Now having said that, the industry norm for pipeline is roughly about 3x. And when I say 3x, 3x multiples of our revenue, right? We are operating at about a 3.5x give or take. The interesting part there in the pipeline is that we are starting to see a lot more longer-term deals, a lot more annuity deals, multiyear deals. And we hope that, that pipeline continues to grow. As we get into more competitive situations, there will be some challenges in terms of win ratios but we've been able to maintain that at a fairly healthy 35% to 40%, which means that where we compete and where we are good at, it's not very easy to beat us, right? We may not be doing too many different things. But where we are, right, we're doing it really well. So that combination of focus and pipeline build, combined with our strong win ratio and differentiation that you heard in the last couple of hours, I think gives us some confidence going forward as well because as we look at building the organization to the next pivot in this journey for the next 3, 4 years, we feel there's multiple areas and some of the lessons and the learnings from our wins as well as losses, right, can play into how we can get a better traction, both in terms of pipeline as well as winning with our customers. So I'll leave it at that. And once again, I want to thank each and every one of you for not just coming here, listening patiently, but also for your very insightful questions. Raman, when you stepped out, I answered the question on your behalf. So we'll let you know what that answer was, because there's some very pointed questions on M&A. But on a lighter note, there is -- obviously, there's dinner, I'm sure you're going to make some announcement. But I do want to remind there's some solution demos that you'll see in the screens as well. So happy to chat over the course of the next hour or so and the leadership team and the other ELT members are here as well. So thank you once again, and appreciate all your support.

Ladies and gentlemen, before you leave, may I please request you to put your hands together for our leadership team. Thank you so much. And ladies and gentlemen, I think you have to keep continuing the applause for all of you for being a lovely audience. Thank you so much for taking the time out and joining us here today at the Investor Day 2022 on behalf of Mastek. Please join us for networking and dinner. If you do have any questions that have been unanswered, please reconnect with the team off-line, and there are a few videos that would require attention. You can watch them here or you can watch them outside as you enjoy some dinner. Have a fantastic evening ahead. Thank you once again for joining us here.

I just want to make sure that an event like this does not happen that easily. We will try to do this once a year, at least, but there's a lot of people who worked extremely hard to make this event happen. And I want to thank all of them as well for taking -- spending the time and really making this a very successful Investor Day. So a big hand for all of you as well.