RateGain Travel Technologies Limited (RATEGAIN) Earnings Call Transcript & Summary

Ladies and gentlemen, welcome to RateGain Travel Technologies Limited Q2 FY '24 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Bhanu Chopra, Chairman and Managing Director. Thank you, and over to you.

Thank you, and a very good afternoon to everyone, and thank you very much for joining the earnings call for RateGain Travel Technologies Limited for the second quarter and first half of the fiscal year 2024. It's great to connect with you all again, and I'm excited to share some key updates from the quarter. Joining me on the call are Mr. Tanmaya Das, our CFO; and Mr. Divik Anand, our Head of Investor Relations. We announced our second quarter and first half results for the fiscal year 2024 earlier today, and I hope you've had a chance to go through our financial results, press release and investor presentation that are available on the stock exchanges and on our company website. I'm happy to report that the company has delivered another impressive quarter marked by robust growth, stellar margins and a compelling financial performance that underscores our positive momentum. The travel industry continues on its path of strong recovery across key markets. And with a shift in people's attitudes towards travel, we are poised to capitalize on macro-level surge in demand and look to get deeper ingrained with our key customers across segments. Our unwavering commitment to delivering excellence and value to our customers and key stakeholders is evident through the strong operating and financial metrics of Q2 and first half. Some of the key highlights I would like to share with you here are: our ARR has grown to a new high of INR 938.9 crores, growing at an impressive pace of 92% year-on-year. We continue to scale up at a healthy pace basis, steady organic growth and successful implementation of our M&A playbook as shown in the quick turnaround and continued traction in the [ dollar. ] Revenues for Q2 grew by 88% to INR 234.7 crores compared to the same period last year. Robust revenue growth was backed by strong margins, affirming the strength of the SaaS-backed business model to convert revenue growth to sustainable profitability. Our Q2 margins have grown significantly year-on-year and now are at 19.8%. The sales momentum continues on a strong footing with new contract wins of INR 125 crores in the first half compared to INR 40 crores last year, highlighting the strength of our comprehensive digital marketing offering and strong volume demand as industry leaders focus to adopt AI to drive efficiencies and optimize their revenues. This continues to be backed by a strong pipeline of over INR 401 crores. We continue to witness good traction in our Adara business as the focus remains to reconnect and reactivate the lost revenue from pre-COVID. Sales teams have seen healthy conversion of the built-up pipeline, and we continue to make investments to accelerate growth by hiring back a lot of the ex Adara employees and maintaining that growth focus. We've increased our focus on the Adara Martech offering, which is higher up the value chain as we manage the performance marketing campaigns for our customer partner brand. Adara's brand recognition has improved significantly as it continues to capture market share across leading travel brands, DMOs, airlines and hospitality chains. This is our product proposition, our renewal conversations are turning into upgrades and more clients are choosing to activate performance marketing with us. This is our AI modeling capability leading to improved performance. We continue to see improvement across some key operating and financial metrics. Our revenue per employee has improved to INR 1.3 crores, improving 62% year-on-year, capturing improved productivity and ability to scale up in a sustainable manner. Generative AI and its adoption by companies continues to be at the forefront for many companies to improve customer experience, drive cost efficiencies and optimize revenue. Our expertise in providing accurate intelligence at scale and driving ROI for large brands is helping drive incremental revenue from existing relationships and acquire new clients. The investments related to developing the right solutions are underway. And while on one hand, we are beneficiaries of the same, we're also adopting and exploring furthur AI-based use cases that have commercial viability in our industry. On the state of the industry, global travel continues to hold steady despite recent macro uncertainty. Global travel growth continues to remain strong with the Global Travel Health Index by Skift coming in at 106 for September, a new record high. All key regions continue to hold on or are above the 2019 levels, with North America continuing to outperform. International travel performance is at par with domestic travel in most regions and clocking the highest score in the North America region, ending strong pickup in cross-border travel. India is another region reporting strong recovery in international travel, with outbound travel surpassing pre-pandemic levels. The momentum in the industry is driving change, adoption, upgradation of existing tech stacks and attracting new investors into the industry, which is further unlocking new opportunities for players like RateGain to consolidate their position through product innovation and acquisition to have a larger share of a thriving market as the industry looks at adopting more technology to engage with travelers. With that, I will briefly touch upon the performance across each of our business units. The DaaS business contributed to 31.9% of the total revenue for H1. This unit grew at a strong pace on the back of healthy traction with some key enterprise accounts across OTAs, airlines, car rentals and cruise. We continue to see incremental volume demand coming from our existing enterprise customers, driven by strong travel demand, product innovation with a focus on building AI models. Given the importance of AI, a lot of our customers are seeking to deploy AI [ in their ] capabilities for their decision support systems, helping in revenue management, personalized recommendations and digital marketing. We expect to see this trend continue to drive growth for our DaaS segment in the near term. RevAI, our threat for transforming the car rental industry, is showing strong growth as we take a land and expand strategy across franchises and have seemed to have achieved a product market fit. New sales have registered a healthy growth. The need for revAI increases as higher resource costs and increased competitiveness in the market pushes car rentals to look at AI-based solutions that can tell them how to increase revenue. The distribution segment accounted for 22.4% of our total revenue. Volumes growth held steady in the past quarter with continued demand across our enterprise chain segment on both OTA and GDS channels. I'm also proud to report that the volumes of GDS channels have surpassed 2019 levels for the first time as we continue to gain traction with marquee customers in enabling connectivity for them across demand partners. We continue to be the partner of choice for large hotel chains as they undertake digital transformation product -- projects to modernize their distribution ecosystem and optimize their presence across channels. We started to monetize our order book from some key wins at the end of last year and expect to see the full effect of that in the second half of this fiscal. Our Martech business contributed to 45.7% of our total revenues for H1, backed by improved growth in the digital marketing segment as we continue to see healthy growth managing performance marketing campaigns for leading hotel chains, regional and global DMOs, airlines and attraction parks trying to achieve higher returns of on digital marketing investments. The value we are driving for large travel brands based on the strength of the travel and tech data we are generating is really allowing us to recapture market share within that segment. With the continued investments, we are confident of scaling up this business in the near term. Our PDM offering for hotels to optimize direct customer acquisition continues to gain traction in the Europe and APAC region. We continue to strengthen the leadership team as we strive to further scale up the business, and I'm happy to share that we recently appointed a new GM for Adara, Jay Wardle, who in the past role was leading a renowned adtech firm Distillery. Jay has extensive experience having worked with leading brands like American Express and AOL and has a proven record in the data and technology space. His role will be invaluable as we continue to drive growth and innovation at Adara. His expertise in leading operations, sales and marketing will be critical for us to drive more well-rounded sustainable growth as we aim for our next big goal. As we navigate through another successful quarter, it brings me immense pride to share some remarkable achievements on the people front. Our attrition rate continues to trend lower to 13.8% annually, reflecting our commitment to retaining and nurturing talent, while our record-breaking eNPS of 1.7% highlights immense employee satisfaction. Additionally, our team has invested over 2,300 hours in training, emphasizing our commitment to upskilling and growth. These achievements are a testament to our collective efforts and dedication to making RateGain the undisputed employer of choice. I'd like to now ask our CFO, Mr. Tanmaya Das, to take you through the performance of Q2 and H1. Thank you.

Thank you, Bhanu, and a very warm welcome to everyone on this call. I'm delighted to report that the company has posted another robust set of results in the quarter gone by, summing up a strong performance in the first half, building on its performance from a record year, strong sustainable revenue growth across verticals, backed by healthy margin expansion, which continues ahead of guidance and stands at a 15-quarter high on the back of operating leverage playing out. Our steadfast focus on operational efficiency and value creation has resulted in stellar margins for H1, affirming our capability to convert revenue into sustainable profitability. The solid foundation positions us well to drive innovation and capitalize on future opportunities. Despite recent macro uncertainty, we see growth holding steady across the travel space, but we maintain a cautiously optimistic approach, keeping an eye on development across key regions. Our inorganic growth front, we continue to mine a healthy pipeline and engage with various companies exploring the right value and synergies in accordance with our strategy to build an integrated tech stack focused on revenue maximization. This continues to be a very key focus area, and we remain steadfast in our approach to finding the right fit in line with our vision. For the second quarter of 2024, the company reported a revenue of INR 234.7 crores with a year-over-year growth of 88.4%. As Bhanu mentioned earlier that we continue to see significant traction in the paid digital media segment of our market offerings. This has resulted in this vertical growing at a faster pace of 142.3% in Q2, with DaaS growing at 119.6% and distribution at 10.5%. With the monetization of our large order win from last year underway, we expect a healthy pick-up in our distribution segment in the second half. EBITDA grew by 163.9% to INR 46.4 crores in the quarter as compared to INR 17.6 crores in the same period last year. EBITDA expansion continues at a healthy pace to a 19.8% margin in this past quarter compared to 14.1% last year. As the company continues on its path of fiscal prudence and operating leverage [indiscernible] scale up, the total operating expenses grew at a pace of 76% in Q2 compared to 88% growth in revenue. Our PAT grew at 132% to INR 30 crores, up from INR 13 crores last year. For the first half of the year, the company reported a revenue of INR 449.2 crores with a year-over-year growth of 84.2%. This was on the back of strong growth from all 3 verticals with DaaS growing 129%, Distribution at 18% and Martech at 114% for the first half. EBITDA grew by 185% to INR 84.2 crores for H1 with the margins coming at 18.7% as against 12.1% in the same time last year. The H1 EBITDA comes in higher than the guidance given at the end of last year, with our high margin business DaaS vertical witnessing strong growth with increased demand and data volumes from our key customers, coupled with continued traction in Adara on both growth and improved margin performance. Our PAT grew 157% in H1 compared to the same time last year, coming in at INR 54.9 crores, up from INR 21.4 crores. The company continues to have strong customer relationships with low churn and focus to expand existing relationships to build sustainable revenue streams. Our gross revenue retention and net revenue retention stood at 90% and 110%, respectively, with an expanding customer base. It currently stands at 3,104. We closely track and strive to outperform on key operating SaaS metrics. And for H1, our revenue per employee stood at INR 1.26 crores, growing at 62% over last year. We continue to make investments in expanding our sales teams in U.S., LatAm, Middle East and other key geographies and have also stepped up our marketing efforts to propel growth. And with that our current pipeline stands at INR 401 crores. Our cash flow generation has improved significantly compared to last year. The cash flow from operations stood at INR 76.9 crores in the first half with the cash flow conversion to EBITDA coming in at 91% compared to 61% for the full year last year. This is on the back of improved profitability and improved DSOs. We continue to have a strong debt-free balance sheet, where our net worth saw an increase of 18% as compared to last year, stood at INR 769.9 crores. Our cash and cash equivalent balance continues to grow, and now stands at INR 423 crores. In terms of guidance for full year FY'24, at the end of Q4 last year, we had guided for a growth of 55% to 58% for the full year over FY '23. Given the performance in the first half, we revised the guidance upwards to around 65% growth over FY '23. Consequently, given the strong margin performance in the first half of this year, we revised the guidance upwards from 17% to around 19% for the full year FY '24. It will be a 400 basis point improvement over last year. With that, I would like to conclude my update, and we are happy to open the floor for questions. Thank you.

[Operator Instructions] The first question comes from Aditya Jhawar from AK Capital.

Excellent set of numbers, Bhanu and the team. I have roughly 2 questions here. So Bhanu, last call you mentioned that like we are just scratching the surface and there is a lot of growth that should happen in the coming years, you said. And particularly related to in-house, I am talking about like -- you said, now currently whatever the growth we are seeing is from the acquisitions led. But I wanted to understand that the tools that we have built related to AI modeling or revAI or this. So how much that we can scale up? And when actually we can see because these are the high-margin product, I am assuming that. So when this margin will be upticking will be happening to like 25% to 30%. That is the first question. Second question is regarding the employees. Currently, if you see the strength of RateGain is, I would assume that it is employees. But how much of the ESOP or the skin in the game the higher management has because that gives a motivation for them also? And the third question is regarding the guidance you have mentioned that -- so currently, if I see you have said that 60% or above. If I see the run rate, we are now only clocking roughly INR 900 crores to INR 1000 crores of revenue. Then why I see that is like decline of guidance or margin also, it is mentioned that it is 19%. And when you scale up the revenue, I think the margin should go up gradually more since we are a totally SaaS-based product. So can you throw light on these 3 things?

Yes. So I was just writing down the questions so that I address each one of them. Your first question on what is the organic growth opportunity look like? So I want to start by saying something that I said in the last quarterly earnings call as well and sort of reinforce that we are absolutely committed to doubling the revenue from here in the next 3 years, which is sort of a CAGR of 26%. My overall sense is that our organic growth will continue to be sort of north of 20% between 20% to 25%. And the balance would be as you know, we run a programmatic M&A program, and we continue to look at M&A opportunities. And we have a very, very robust pipeline as well. But from an organic perspective, the way we think about our business is really there are 3 levers for growth organically. So we have mature products that we continue to penetrate. There is a very, very large addressable opportunity. These are mature products that have very, very healthy EBITDA margins, and we continue to penetrate them. These are all the existing products that you see in the areas of vast distribution and Martech. The second category of products, I classify them as sort of teenagers. These are products that we've invested in. I talked about at the time of the IPO about all the investments we were making through RG Labs. And now it's been a couple of years, they have matured. They're revenue generating. And hopefully, we will be hitting at some point, a tipping point from which we can see a hockey stick effect. So I believe that we are at the [ task ] of achieving that with 1 or 2 of the new products that we have, including revAI and the integrated Revmax platform. And the third category is really what I call babies. These are products that are at an inception stage. They are pre-revenue, but they burn a lot of cash. And these are experiments that as a company, we continue to do. Some will work out. Some babies will grow into teenagers, but some will have a terminal effect. So -- and as in things that's focused on tech, it's very important that we continue to focus on that. So our assumptions are largely on growth, organic growth from our mature products. But I do feel like there will be 1 or 2 products in that teenager category that will grow into adults over this next period. The second question was around how do we ensure that the senior management team has a skin in the game show? And so we already have a SARS program where for -- as sort of the stock price goes up, there is rewards for the senior management team to participate in that upside. And they are about 100 people out of the 800 people that participate in the SARS program. And secondly, what we are also doing now is we recently got an approval for the ESOP Trust. So the goal is that we will also now start providing stock to senior employees, and we're working on internal modalities on how we do that, but that creates another incentive for senior management team to participate in the upside of the company. And so far, it's really working very, very well as was evident in the attrition numbers that I pointed out, the industry is -- the product industry, product tech industry is usually hovering around 20% attrition, but we are now at about 13%. And this is in addition to other HR programs that we run. Your third question was a question around the existing numbers that we have and the opportunity to continue to -- I think you mentioned the point that, look, you're tending towards INR 950 crores to INR 1,000 crores and margins are already at 19%. So how come the vision in upside is not more. So look, I think as you've noticed that the performance is already exceeding what we had guided for 2 quarters ago. And we've actually fended that guidance now given the performance that we've seen. And we want to continue to promise and over deliver on that promise, and that's the hope. But your question on the margins, I think, we are in very early stages of the large opportunity that exists in the travel industry. And again, a metric I've talked about, it's a $2.35 trillion industry with almost close to a $100 billion spend on tech and travel and hospitality. So we are still a very, very small company, and there is a large addressable market that we need to focus on and grow the company. So we are actually quite ahead of schedule in terms of the margin profile that we wanted to get to. So if you look at our LTV to CAC, it's very efficient. And I was hoping you would ask me the question that why aren't you investing more in sales given the LTV to CAC, right? So given our customer acquisition cost is also so efficient and with all the different programs that we are running, I see a much larger opportunity to continue to reinvest in the business. And we don't want to -- I mean, when I talked about all the 3 different categories, the babies, teenagers and the adults, so all our mature product lines are actually in fact north of 30% margin, and we can turn that on very, very easily. But we don't -- do we want to do that at the cost of growing the company? Absolutely not. I mean we see the opportunity and we want to capitalize on it. And look, this is going to go through investment cycles when we -- I'm trying to build this company for getting to -- ultimately getting to $1 billion. So whenever we see the opportunity to invest more and scale up, we will go through those investment cycles. We see the opportunity where we want to invest more. So at this point, I would say we are extremely comfortable with the margin profile that we have obtained. And as I had indicated in the last quarterly call, pretty much attainable in the 3-year time horizon that we can get to closer to that 25% number.

Okay. That sounds good. Bhanu, last, just to follow up this one, you said the second category, right? The first one is matured and the second one. So when that second one -- since we have been working on for past 3 years or 2 years, right? So when it will come matured? I just wanted to understand the life cycle of this product. So can you...

So I would say that with increasing revenue and the products are growing extremely fast, but the revenue base is small. So even if I told you each of these products are growing at 100% year-on-year revenue, the base is small and given the size of the company is overall now scaled quite significantly for it to create a meaningful impact is at least a few quarters away where you can see a meaningful impact on our overall top line and bottom line. But as I mentioned earlier, I feel very, very comfortable with our mature products that I call it continuing to give us that 20% to 25% growth, and I see this actually as a bonus. So we are at it, but if the company size goes from 2 years ago, if I told you that we'll do INR 30 crores, it would still be meaningful, right, because we were at INR 300 crores. Now we're closing in at INR 1,000 crores. So INR 30 crores is neither interesting for you nor for me to talk about. So I do think as we get scale, as we reach the tipping point, these teenager products would be the future seeds. I mean the seeds of growth that we have sown that it will ultimately do create that meaningful impact for us.

[Operator Instructions] The next question is from the line of Karan Uppal from PhillipCapital India.

Congratulations on a strong set of numbers yet again. So 2 questions from my side. Firstly on Adara. So how had Adara performed in Q2? Last quarter, you mentioned that the revenue was around $8 million. So if you can share what is the revenue run rate this quarter? And ex of Adara, how is the growth in the market segment? So that's question number one. Second question is on distribution. So why is distribution revenue steady when travel sector is doing so well? Is it due to the discounts you have given to some large hotel chains or maybe you are losing market share to competitors? So if you can explain the disconnect between distribution and the strong travel demand?

Tanmaya, do you want to take that question?

Yes, yes, I'm sorry, I was speaking on mute. I'm sorry. So Yes. So the first question was around Adara. I think Adara is growing around -- it registered around 57% growth in H1 and 81% in Q2. So it is incrementally growing, sequentially growing and showing all signs of an excellent year. It's now crossed around $10 million quarterly revenue mark, which was around $8 million or $9 million last quarter. So that's on Adara. On -- next question was on distribution. Yes, the distribution revenue is flat this quarter, primarily because one of the large OTAs which is connected to us is not performing well from their perspective. So the number of bookings are not great. But at the same time, good news is that we had one of the large OTA connecting to GDS last year, and that has started to monetize from this month. The benefits have not been seen in H1, but from Q3 and Q4, you would see the uptake because of that -- and it is the biggest contract ever won in RateGain. So we should see some good uptake in Q3 and Q4.

Okay. So for the full year, can we expect Adara to grow maybe 30% to 35%?

Yes, Adara will grow around 45%.

The next question is from the line of Deepak Poddar from Sapphire Capital.

Many, many congratulations for the extremely good set of numbers. So first of all, just a few clarifications on the comments that you already made. You mentioned that 20%, 25% is an organic growth, right? So I mean -- and the balance will be through M&A. So overall -- so what percentage growth do you expect from M&A as well? I mean, would it be 10%, 15% on an yearly basis as you mentioned, we have a good pipeline, right, of M&A activities?

Yes. So it's very hard to like put a number on the inorganic growth because we're looking at companies that are different sizes. So it's hard to comment. But even if we were to sort of take conservative numbers in terms of the size of companies that we undertake given the past performance, that's why if you sort of do the math, this goal of coming to doubling the revenue in the next year is basically a CAGR of 26%. So we think that organically, we can grow between 20% to 25% and the balance will be inorganic. And it's also important to look at how disciplined we've been about M&A. So if I take you back to 2015 when we raised our first round of private equity money and it was for the purpose of M&A, we didn't actually acquire any company for the first 3 years. So it's not going to be a straight line for the next 3 years. It's very much possible that we may do 1 or 2 deals within the next year or it could be that it's postponed to the second year. It really all depends on the value that we get these deals at because we've been fiscally very prudent about what we pay, and we are patient strategic buyers. So it's hard to put down a number, but what basis whatever past or we've seen over the 3, 4 years and the 4 acquisitions that we've done, we've given some -- we've taken some conservative numbers on what that inorganic growth would look like.

Yes. So -- and you mentioned doubling revenue in 2 years, right?

No, 3 years.

3 years. So that effectively means 25% CAGR. I mean, that's organic, right?

No. So it's 26% is what it is, and that does account for inorganic as well. Like I said, we've taken sort of like conservative, it's conservative numbers on what inorganic growth will add to our revenue growth.

Okay. Okay. Fair enough. I understood. And my second clarification on your margins. I mean, we do have an aspirational margin of 25%, right, in the medium term. That's what you mentioned, right, in one of the comments earlier?

Yes. So like I said, as a scale of, let's say, INR 2,000 crores, I do believe that we will be at a 25% margin despite us wanting to continue to invest in R&D and scale up because from here on, on a lot of our mature products, I continue to see the operating leverage play out. So yes, so we do feel comfortable. But like I said, we've been exceeding our margin guidance since we have listed, and I'm very comfortable with where we are. And, we'll get there in 3 years, but I don't want to get there at the speed we are expanding margins and continue to actually accelerate our investments.

Correct. Correct. So at a INR 2,000 crores revenue scale is what we might aspire for such kind of margins as well, right?

That is correct.

And then my last question is on your -- I mean, current global situation. So the current global situation, we see any kind of impact on the demand side or on the client side or any reservation? Or I mean, how is the situation right now?

Yes. So look, clearly we are seeing some level of impact in the Middle East. The conversations that we are having with customers is slowing down because of the situation with Israel, Palestine. And -- but overall, so far, I mean this conflict started on the 7th of October, but we've not seen any other impact on the overall business, either in the U.S. In fact, I'm sure you've seen the GDP numbers that came out. Similarly on the travel numbers also, we are seeing pretty robust demand. So although we have seen some impact in the Middle East area, and it's a very, very small business for us today. So on the overall numbers, it's a marginal impact. But I would say that Middle East was an area that we really wanted to focus and grow in given all the investments Saudi Arabia is making in trying to actually become bigger than even UAE. So that's obviously on a pause. But on the -- in the grand scheme of things, it's not impacting our numbers.

Okay. So overall, we are not seeing much impact?

That is correct.

The next question is from the line of Ritik Tulsyan from Concept Investwell.

Yes. So I have 2 questions. So first is what as a company we are doing differently leading to such a high LTV to CAC because the average of SaaS company is far lesser than your company? So like I want to understand what we are really doing differently. And where do you see this number heading in, let's say, 2, 3 years down the line? So that is my first question. Second, I'll ask after you've answered the first question.

Yes. So look, I can talk about what we are doing and how our sales structure is and how we go to market. So basically, broadly speaking, there are a couple of segments that we go after. One is the enterprise and mid-market and the other is sort of the long tail. And if you look at our business, predominantly, we're heavily concentrated in the mid-market and the enterprise segment. And we effectively go to market by utilizing our global center of excellence and marketing based in India. So while the enterprise team is actually operating in each of its respective regions, there's been a lot of ammunition and support that is provided by the COE of marketing based out of India. So effectively, we are able to manage our marketing costs. But in terms of our enterprise [ feet on street ] are local in the market. The other thing that is really, really powerful in the RateGain platform that's something that I've talked about in the past, and we haven't fully leveraged it is as we acquire more companies and capabilities, there is a huge bunch of overlap in terms of the commonality of customers that we have. And as a result of which it creates tremendous opportunity go to the customer and say, look, we are doing already these things with you. Now we have this interoperable platform where we can become the one-stop shop, which helps us increase the size of share of wallet with each of these customers. So, I don't see your other question about do I see the LTV to CAC changing quite significantly? No, because we will continue to be focused on this mid-market and enterprise market. And I do not believe that we have fully leveraged the platform of cross-selling and upselling yet. The work is underway, and I do not see these numbers changing significantly over a period of time.

Okay. And my second question is, so like we have a good amount of cash and investments on our balance sheet, right, yet we are going for QIP. So I just want to know, do we have any big M&A in pipeline or in lines for which we need such huge amount of cash? So I don't understand the need for IP right now. So if you can explain on that part. So that was my last question.

Yes, you're right. I mean we're at INR 425 crores to INR 450 crores now of cash on the balance sheet. And as you saw in the first half, we generated INR 76 crores. So it's a valid question. And as we've been saying that, the goal is to actually build a war chest plan, and we do have significant Opportunities in front of us from an M&A perspective. And we do believe that we need to be ready for that -- because when an opportunity knocks at your door, you need to be able to respond very, very quickly. And thus, we believe we need to have this war chest to be able to execute on some of these deals that they do capitalize at the right price for us.

The next question is from the line of Anmol Garg from DAM Capital.

Congratulations on a strong set of numbers. I have just one question, particularly how should we think...

Mr. Anmol, can you use handset in case if you're using the loud speaker because there is a lot of echo.