Tech Mahindra Limited (TECHM.NS) Earnings Call Transcript & Summary

[Foreign Language] May I now call on Mr. [ Vinashri Shrimal ].

Hello. Do you hear me, sir?

Yes, I can hear you. I can hear you. Mr. [ Shrimal ] I can hear you. Please, go ahead.

Mr. Chairman, the member of the Board, my investor friend. I am [ CV Shrimal ] from Kolkata. I'm extremely grateful to you, sir, for giving me the opportunity to interact in the meetings and proceeding of this AGM. Sir, my visuals are not available and share our views and suggestion. Sir, here, I would like to have my fond memories of this meeting with senior Mahindra, when he used to share the making of [indiscernible] at Kolkata with great ability. Sir, the COVID has thrown up a great opportunity to organize AGM in the virtual mode, and it has definitely open up equally great opportunity to participate, to join the meeting at the AGM by investor all over India, so as to say, even from abroad. Sir, before I go ahead and share my views of accounts, I would like to place 2 very important suggestions for your kind consideration and implementation, please. Number one, the figure should be crores only instead of million. As we in India better understand and conversant with the figure in crores. Moreover, even multinational companies like HUL publish their accounts in crore only. Number two, the annual report contents are about 340 page or pages only. And that you will agree and appreciate is not on further stretch of imagination is possible to go through at this time of year-end [ import ], realigning of the AGMs. And there, I would suggest that you should also give consolidated accounts along within. So as to enable the speaker to concentrate in the accounts only instead of running through the pages. Sir, what is the total capacity utilization by the company to date? Have we reached the before COVID-19 level? I would also like to offer my thanks to the Chairman, Mahindra and efficient MD and CEO, Gurnani-ji and his management team for producing indeed a reasonable good result under a very challenging environment indeed. And we find there is a definite downward trend in the economy. The company has performed and appearing in Page 19, shows a downward trend in all the fronts and by all the parameters compared to last year and year before. This is a matter of great concern to the investor community as the trade continues downward for 3 years. Sir, what is the outlook for the current year, please, as the COVID-19 has no impact on the industry, to my mind, rather return of a new vertical and special digital and artificial intelligence front. Having said so, now I would like to take up the dividend payout. Sir, you have paid INR 0.15 per share on the backdrop INR [ 21 71 30 ] million, which was low to 12.67% only, whereas your dividend policy says that it should be paid 20%. When the investors are facing huge cash crunch and/or many small investors, we want dividend earnings while the company under the dynamic leadership of Gurnani could manage to improve its profitability in a stand-alone basis. Should you declare a higher dividend? I would also like to point out that the companies like HUL is distributing dividend to the tune of 91%. Usual practice for payment of dividend is on the next day. I would request you to please see that the dividend is credited to the investor account by tomorrow or day after by the latest. I pray, sir, and request the management to take care. Sir, to enable the investor to enjoy the tax-free benefit you would have declared an earlier dividend before March 20, given the second interim one. Sir, in profit and loss account, the finance cost has gone up to INR 667 million compared to INR 431 million. Could you kindly enlighten us the increase and whether you could continue future as well as steps for debt reduction. Your total CapEx for the current year, as the current year would be going to be a very tough, could you share the cost control measure envisaged by you? The finance performance appearing in Page 133, if it is in the columnar form, giving the consolidated figures as well, with the stand-alone, it would have help the investors to understand both the working and assess stand-alone and subsidiary of the total subsidiary company. The help extended by COVID-19 by the company is very laudable. If you have stated -- you have stated as to -- has 24 acquisition made by the company. Would you please enlighten their working and contribution to the revenue and profits of the company and the capital investment made? Impairment of investment is INR 5,554 million compared to INR 1,021 million last year. Could you kindly explain, sir, the reason? I must appreciate very highly the informative as well as wonderfully presented annual report. To impart higher confidence level to the small investor, I request the Chairman to get the balance sheet signed by all the directors, especially the independent director. And also give a short resumé of all the directors giving their qualification and their experience, please, so that we could understand them better. Sir, with this, I would like to conclude, and thank you very much for giving me a very patient hearing. Sir, and I wish you all a safe life, sir.

Thank you for your good wishes. I now call on [ Behrouz Vez ].

Hello, can you hear me, sir?

Yes. I can hear you. Please switch on your video.

I'm listening. Sir, I have always given a long list of [ tough ] questions, I won't ask to repeat those questions. Sir, I want to ask we are #5 in the IT companies, #1 in telco. Could you please react on the latter? How come we are...

Your voice is very strange. Could you come closer to the microphone and your device, please?

Sir, can you hear me now? Sir, are you having offices in China?

We hear you better. Yes. Go ahead.

You have growth in U.S.A. Sir, are you having more employees in U.K. than U.S.A.? Sir, how many countries do you have at present? How many patents have you registered? Sir, are you having R&D department? Sir, when will 5G be available to the people of India? Sir, I must compliment your secretarial team. Sir, this meeting has taken so many years of preparation, yet thanks to [ Anil Khatri ] [indiscernible] and at this time, we could finally be here and a meeting could [indiscernible] we are confident about the outlook. Sir, what about your amount spent on CSR? You have mentioned a wonderful CSR given the company is doing. Wonderful. Sir, what about your work in Assam floods and India floods? Sir, how much work in order do we have? One last question. Sir, how many people are viewing this audio, sir, there are so many thousands of [ new holders ] watching the audio visual. Can you view this personally and all the directors are indeed watching this very much. And are you ready and that next year, we will come and meet you personally along with all the bank. Thank you, sir. We shall now hand you over, go to the next speaker, [ Behrouz Pooladay ].

Respected Chair...

[ Behrouz ], go ahead.

Respected Chairman, Mr. Anand Mahindra, [ Behrouz ] speaking.

Yes, [ Behrouz ], go ahead.

Here we are able to attend this meeting through, VC, video conferencing. Sir, we are very glad and your secretary has taken the trouble of always contacting us and always on the calls, whenever we ring her, they are always on the call. We are very happy that you hired Mr. C. P. Gurnani. He has been reappointed as the Managing Director and CEO and he's attending the sales meeting through VC from [ Florida ] yet having to coordinate with the IT sector [indiscernible]. Would like to know how many countries you are present. And why should you still remain in China because China was going to view IT technology through [ U.K. ] Our IT component, how it would affect in China? I think he will take your help and you should be [ vocal ]. Sir, we wish all your company all the best, and we are glad that [ you could hold ] 1, 2Q dividend and [ top ] dividend. You won't hinder it given our final dividend. It is trying time, actually, given time for me to, sir, look for all your recognition, especially the recognition for the [indiscernible] and the appointment of [ Director ]. If you don't mind, sir, you are always coming on [indiscernible] and in addressing all the stakeholders. So we wish a company all the best. Thank you very much...

May I now request [ Hitokshi ] Patel, please.

Sir, I think the shareholder has not joined the call. So can we please move on to the next shareholder on the list?

[ R. Saraf ]. Mr. Santosh Kumal.

[Operator Instructions]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language] Thank you. Thank you. You can hear me clearly now.

[Foreign Language]

[Foreign Language] May I now call upon Mr. Mukesh [ Chandiramani ].

Sir, Mr. Mukesh has not logged into the call. Can we please move on to the next shareholder on the list?

Yes. Our final shareholder for the day will be Ms. [ Lekha Satish Shah ]. [ Lekha Bahan ].

Hello.

Mrs. Lekha, [Operator Instructions]

Board of Directors and my fellow members, good afternoon to all of you. Myself, Lekha Shah, are very thankful that our company secretary, Mr. Anil Khatri-ji especially Mr. Gurnani-ji, for assembling very good investor details and you also sending the [ MD&A ] well in time. It is full of knowledge, [ patents in place ]. Due to pandemic COVID-19, we are now facing a crisis and have to stay home...

Lekha [ belle ], we cannot see you. Can you please switch your video on, please? We can hear you, but we cannot see you. Please switch your video on.

Yes, sir.

Are you able to switch your video on?

Yes, sir. Hello?

No words coming in. Don't worry, please as go ahead with your questions. We can hear you clearly.

I would like to congratulate you and your family for winning Andhra Pradesh this year, like IT at the second edition of CNBC award, CEO award for the year 2019 and, too, Innovation award and the People Innovation category from the Economic Times.

Okay. Lekha [ then ], are you still there? Hello. Lekha, can you hear us?

Yes...

Please continue with your questions.

Sir, I have confidence that your vision and determination, you can lead our company to create a fight and also, I pray to God our company should progress more and more and of you [indiscernible] I know that things were -- so I wish our company wonderful guidance this year and I support all resolutions.

Thank you. Thank you, [ Lekha ]. That was the final question. But before I answer the shareholder questions, I would very much like to share with all of you 1 video that illustrates how our Tech Mahindra team responded to the COVID-19 pandemic and one more video that illustrates the various initiatives taken by your company in making it a great place to work. May we please have the videos. [Presentation]

So ladies and gentlemen, let me start with the answers to the questions. The first question is from Arun [ Kumar Bupenda ]. Arun, it was good to see you. First of all, let me tell you that the question about business models and how will Tech Mahindra do the rearranging. Your company has been aligning business strategy and service offerings to respond to dynamic changes in the external environment. Our 3-4-3 strategy focuses on 3 mega trends, 4 big bets and 3 objectives for our customers. Accordingly, we are continuously working on launching new service offerings and expanding into new geographies, regions and industry verticals. Your company will continue to evolve and innovate with newer models going forward. Your second question was about economies struggling and challenges doubling and how will M&M, and are we taken aback by the struggling. Now we've always successfully navigated through troubling times and we've come out stronger and better. And the recent quarter is an example of how successfully we have navigated the challenges. So trust us, we will certainly do. We certainly don't see ourselves struggling against these challenges. Will AI disrupt jobs in the net and will TechM create an entirely new set. That was your question. And I want to tell you that new and disruptive technologies, such as artificial intelligence, machine learning, automation, robotics, all of these have the potential to disrupt the job market. The jobs mostly getting impacted are routine and repetitive, and they require low skills such as transaction processing. However, there will be new opportunities which will emerge requiring new talents and new skill sets and then that will need rescaling and upskilling and training on new technologies. But rest assured, your company has been investing and we'll continue to invest in these new technologies. And we'll keep building innovative solutions to improve customer experience. We are also strengthening our competencies with in-house platforms, partnerships with top providers and start-ups to enhance our portfolio. You then ask will TechM offer flexi jobs. Yes, we do offer part-time and fixed contract jobs that are flexi jobs. The next question are artificial intelligence, IoT, blockchain, these are all great opportunities. But how will we seize these opportunities for serving global communities. New technologies such as AI, IoT, blockchain, cybersecurity, they've all got the potential to disrupt the marketplace. But they also offer great opportunities. And we've been investing in these technologies to build solutions to serve global communities in the areas of carbon emission, smart cities. And in fact, most recently, to fight against the pandemic. Let me give you some examples for our telemedicine platform. We had remote medical assistance via remote consultations. We have an SOS Seva citizen help in managing emergencies, helping all citizens to stay safe and ensure that they get quick help. And then we have the ePASS emergency solution, managing emergencies, controlling the movement of people during the pandemic. So many, many things put together, which I think were a tremendous benefit to society. Your next question, digital channels are becoming mainstream. When will TechM have the team? Well, we already have a team to focus on digital technologies. Digital revenue contributed 40% of our revenues in FY '20 and recent Q4, it contributed 44% of revenues. As a global digital transformation provider, we help businesses adapt to this very fast-changing digital landscape. And we have scalable, replicable and sustainable outputs and outcomes. So digital is mainstream for us and our company is committed to contribute to the vibrant digital revolution. I think that covers many of your questions, Arun. And once again, it was good to see you there. Let me move on to the next query. Now let me see. The next question was [ Aspi Besania ]. [ Aspi ], again, good to see you, your question was, are we investing in 5G technology? Now the telecom industry has its own up cycles and down cycles. And we've actually been investing heavily in 5G over the last several years. I think we're going to gain due to our bets in telecom and enterprise 5G. Because we work with all global telcos on [ SG ] programs, and we are confident that it's going to result in growth for us. Interestingly, this pandemic has increased dependence on the telecom network more than ever. Social distancing, work-from-home. I have a suspicion it is going to continue in the longer-term in many geographies and for most companies. So I think telecom companies are going to look to invest and expand the existing network. Now we work with all major telcos in India and globally, and we continue to look for opportunities in this space. Your next question, [ Aspi ], asked about H1-B visa issues affecting our business. Very common concern most people have after reading about the moves in the U.S. But to be honest, we don't see any meaningful impact because of the recent presidential order on H1-B [ in other areas ]. Tech Mahindra has significant localization levels of 45% to 50% in the U.S. and we scaled up from the mid-20s a few years back. So also in light of COVID, we see potential from offshoring, possible in the long term. So for now, I think you should be assured that we have significant on-site presence to cater to current demand, and I don't expect any issue on TechM operations as of now. I think that covers your questions. We move on now to [ Sumal ]. Some of the company you asked whether the company booked a massive INR 1,463 crores during FY '20 as dividend income on investments and distributions from benefit trust under other income against last year's figure. You wanted us to share some details on that. So the FY '20 dividend income of INR 1,463 crores in the stand-alone books included dividend of INR 980 crores received from our U.S. subsidiary, TechM (Americas), Inc, and that was not there last year. And the earnings on distribution from the TechM Benefit Trust in FY '20 was INR 278 crores. You asked a general question about our M&A policy of the company. Now we evaluate all potential opportunities. However, our inclination so far has been towards smaller size tuck-in acquisitions, as we call them. And those help to fill the white spaces in the few service offerings and focus verticals. Now M&A will continue to be a strategic pillar for our company, but let me assure you that we are very, very focused on capital allocation and making completely sure that all our investments pay off and provide the adequate return on capital that we are looking for. You then asked what's the impact on cost and future plans of from home. Now work from home didn't lead to additional costs for us. In fact, it helps in consolidating facilities and saving costs over the long period. And also as an operating model, we found that employee productivity, interestingly, was the same or even higher during this period. Your next question was the net margin in the communication and segment, BFSI and insurance. [ Sumal ], we don't really give away data on margins. That's competitive information. You asked what is the earnings from the U.S. and other countries. Well, we get around 48% of our revenues from the U.S. and around 27% from Europe and the remaining 25% from the rest of the world. What's the impact of Indo-China tension, a number of you asked that question. Well, we are keeping a close watch on this issue, to be honest, and we are going to be abiding by our government direction. Our China operations and our customers are very small part of our overall business. And we'll see how the situation evolves, and we'll react accordingly. The next question you asked about TechM Services, which has negative net worth. Are we going to close down, [ Servicos ], actually? Are we going to close it down or dispose of it? Now our endeavor has always been to continue grow and grow business in all the territories in which we operate in. And we're always trying to build business these synergies between our subsidiaries and the parent company. So we will continue to do the same for this Brazilian subsidiary, TechM [ Servicos ], and we'll try and evaluate all the options we can. You next asked what's the present status of the SLP filed by the Enforcement Director before the honorable Supreme Court against the release of fixed deposits. Well, the SLP filed by the ED is pending right now, but admission before the Supreme Court and the company will continue to monitor the development. And we'll take all the required steps that are necessary. The next question, company's dependence on communication industry still high at 41.6% during FY '20. What's your game plan during the next 5 years in this respect? And again, you asked for net margin, which you know we don't give. But the dependence on the communication industry has come down over the years from 47.8% in FY '17 to 41.6% in FY '20. While the communication vertical continues to offer exciting opportunities in 5G and network areas, they're going to continue to focus on other verticals. And our endeavor is going to be to grow them faster. Because we actually believe the enterprise business is going to continue to grow, and we plan to scale up verticals such as manufacturing, BFSI and health care over the next 5 years. Well, I think that covers all your questions. As you know, we try our best to come out with a long list of items, but I'm glad I was able to cover most of them. It was a pleasure to see you again, and I must tell you, it's very interesting for me. This virtual session allows me to get a glimpse into your homes and your location and I was not surprised at all that in your home, right behind you was a shelf of books completely stacked because I know you're a voracious reader and an intellectual, and I'm glad I got a chance to peep inside your home. Of course, I look forward to seeing you in person next year. The next person is Mr. [ Anil Parikh ]. And [ Anil-bhai ], you asked us to provide the revenue breakup of the rest of the world and who are the clients in top 10 for the rest of the world. The rest of the world includes India, which is more than 7%, and the rest of the revenue is from Australia, Singapore and Middle East. We don't really give customer-specific data, however. Now in the year, FY '19/'20, merger of [ TMG, FL ] and DynaCommerce. You wanted to know whether the merger is positive or negative. Now the merger of [ TMG, FL ] and DynaCommerce India is net positive as it's going to reduce the number of entities and related compliances and administrative costs. The consolidation of entities is a regular process, given the large number of entities that the company has. The next question, when will the second buyback happen? Well, as per regulation, buyback can happen only after 1 year of the earlier buyback. The Board will take a call on the next buyback, but we will keep your comment in mind. Then you asked are all the 1.25 lakh plus professionals safe? What is the precautions taken to keep them safe? How many are working from home? So let me tell you that as of date, 95% are working from home. All our employees are safe, and they're taking all required precautions in our offices, such as regular fumigation and disinfection of offices, mandatory terminal screening, enforcing strict social distancing norms amongst others. So please rest assured this is a prime concern for us. We're looking -- we are taking great care of this. And your final question was the 18% stake Infotek and Vitaran 59% in Cerium and 100% in Zen3 and you asked my view on these acquisitions. Now we evaluate all potential opportunity. However, inclination has been towards smaller-sized tuck-in acquisitions, which help to fill in white spaces in the few service offerings and focus work. M&A is going to continue to be a strategic pillar for our company. And as I've mentioned earlier in an answer to another question, we will keep looking for opportunities, but on the other hand, we're going to be very, very careful about capital allocation. That is for sure. Thank you. I'll move on to the questions of [ Sailesh Bai ]. [ Sailesh Bai], it is good to see you. And I noticed that the lockdown has had 1 benefit. You have obviously not gone to any barber or hair styling salon. Your hair has grown long. But I must tell you the style suits you. You look like a wonderfully intellectual professor, and I hope maybe you'll maintain that hairstyle even when the lockdown ends, but it's good to see you. Your question, the first one was the 5G technology in western and advanced countries is already in use, whereas in India, it's yet to take shape. You wanted to know about the present status of our investment in 5G. How is this going to help the company in terms of revenue, et cetera? So with more than 40% exposure to the communication vertical, we are betting big on 5G. Currently, it's in wait-and-watch mode due to the uncertainty created by the pandemic but I must tell you, most customers are eager to accelerate deployment once the dust settles down. In the short term, most telcos are conserving cash. However, long term, our customers have indicated they want to continue investing in 5G, and they want to upgrade their technology. So we see a lot of potential. How will we benefit from the communications sector? Well, we've benefited all our lives. We started out as a company focused on telecommunication, and I see our benefits continuing. We have seen some pre-5G orders this year, such as modernization spend, resulting in growth in communications. We've invested in this over the last 7 years, and we'll continue to invest so as to remain at the top of the list of the telecom software specialists in the country. You want to know how many patents, IPR trademarks we have gotten. We've applied for 111 patents. 52 of them are granted, 59 not granted. We've also applied for 174 trademarks of which 69 are granted and 105 not granted. EBITDA margin comes down to 16.6% from 18.2%, and you wanted to know the expected result. Now as you know, we don't make forward-looking statements, and our EBITDA margin has dipped in FY '20 because of transition costs on large deals that we had won. These unwind after a while, these costs. But some macroeconomic issues were faced by our portfolio companies and the pandemic impact, but we are working on various measures including optimizing our costs to maintain and even improve margins in the near term. You made a suggestion while in the glossary, give an explanation of terminology. As you know, we always take your suggestions very seriously, and I will pass them on for the secretarial department to consider. Apparently, you missed the quarterly results. So let me just give you quick highlights. Revenue for Q1 FY '21 was INR 9,106 crore with a PAT of INR 972 crores, which is actually an increase of 21% over the previous quarter. We have had our highest ever free cash flow of any quarter at INR 2,300 crores. And I frankly think that in a COVID-impacted quarter, this is a very good result. Thank you again for your questions, Sailesh. It was good to see you. I move on to Mr. [ Nachiappan ]. Mr. [ Nachiappan ], you pointed us to Page 191 of the stand-alone financial statements, a provision of doubtful debts and all that, and why such huge amounts, et cetera. Was it approved by the Audit Committee? Well, your company is in a constant endeavor to collect money from customers and reduce the provision for doubtful debts, and we'll continue to do that. But as a prudent practice, we consider an additional provision to take care of expected future impacts from the pandemic. And considering that, we've taken an additional provision in the books of approximately INR 115 crores. That's really the reason for the increase in doubtful debt provisions. Post quarterly results, can you share financial statements to all shareholders through mail? That's an interesting suggestion. We've noted that. We do have all the results and related material on our website. So thank you, again. I noticed that you said you are joining in from a remote place in Tamil Nadu. I wonder which one that was, but we really are grateful that there is connectivity across this country and into the remote places that have allowed us to reach people like you. The next question, [Foreign Language]. You said what will be the impact on the revenue from the U.S. region as U.S. impacted. [ Aji ], there has been a significant drop in GDP in the U.S. Few sectors have got affected and we've seen some decline in revenue in the U.S. region. But we see customers spending much more in digital transformation in the future as we see more movement from offline to online. Technologies like cloud, I think, are going to see increased adoption, in fact. Those are the bulk of your questions. Otherwise, [Foreign Language] Thank you, [ Asha Lata-ji ]. I'll move on now to keep the [ Geeti Shah ]. [Foreign Language] but I'll try and answer what I think we heard of your questions. The first one was why the stand-alone March '20 quarter net profit was high compared versus December '19. So the stand-alone profit in the March quarter was high compared with the December quarter, mainly due to other income. In the March '20 quarter on account of dividend income received from our U.S. subsidiary. And then you also asked why the margin was a 18.4% and came down. And I think the same answer that I just gave you covers that as well. The margins were affected by that. You were asking about our low P/Es now as you are aware, we have a 40% exposure to our communication vertical, which is a cyclical industry. And we have seen historically that the P/E ratio gap converging with us during a telecom up cycle. So the recent reduction is a function of how the market has reacted in the wake of this COVID. But we have confidence that as the external situation normalizes, we're going to see the stabilization of earnings, which will effectively drive the P/E ratio. You asked about our promoter holding and why it's so low. Well, thank you for that advice and I think the Mahindra & Mahindra Board will take the decision at the appropriate time. We have taken your comments into account. And you wanted to know why the price-to-book is so low. Well, I think there's been a recent correction in stock price, and that has probably led to this ratio being lower. So thank you, again. It was good to see you. I move on to Mr. [ Shrimal ], [Foreign Language] the result suggestion, why not in millions. Thanks to the suggestion. We'll look into that in the future. You also suggested in the annual report to give consolidated accounts, but the annual consolidated statements are published in this year's report. In fact, the KPIs or the key performance indicators are at Page 12 and 13 of the annual report. You wanted to know about the total capacity utilization after COVID. Well, we are operating at around 95%. We work from home. So we are operating almost at full capacity, currently. You asked about the dividend being low. Well, our dividend payout ratio, excluding buyback, has been improving, in fact, despite the outflow towards acquisitions. The dividend payout ratio to PAT is 41%, and we've increased our dividend payout this year and generally, it's increased over the last 4 to 5 years. We also paid a special dividend some time back, and we did a buyback last year. So we are constantly looking for different ways in which to return cash to shareholders in a form of dividend and buyback. You asked whether the dividend will be credited tomorrow. It will be paid on or before 7 August 2020. And you asked about our view on CapEx. Now we are aiming to operate at 25% to 30% work-from-home level in the near term and give up some facilities on lease. This will have some savings in capital expenditure. And the major CapEx will be mainly in laptops or desktops to support work from home. I wasn't -- you asked a question about impairment. It was not clear, but I think it was about impairment and this is an annual activity of impairment testing. We compare carrying value of investment and value in use for the same. And as part of that, we provided INR 555 crores as a payment in stand-alone and INR 217 crores in consolidated. And this is also partly due to the pandemic impact. We've taken a very prudent view on carrying value. How are our acquisitions helping us? That was your final question. Well, we are looking to expand our reach and capabilities through acquisitions. We continue to invest in technologies which are meaningful and which help our future strategy. That's the way we look to get growth in the new markets. Thank you. And I move on to [ Roman ], who I think was next. You said -- you asked how many countries are we present in. Again, your voice was a little unclear. So I just want to make sure that we've understood your questions, but if not, do forgive us and write into us. And you asked us about China and going to 5G tech. The government has rejected China. Now we operate in more than 90 countries. We are in the forefront and working with Indian government on many initiatives. And we signed an MOU with ITI to make homegrown equipment with telcos of India. So I think we'll benefit in the long run from this move to 5G. Again, as I said, I couldn't hear too many more of your questions, but I hope I've answered the key one. [ Behrouz ], and I may have mistaken which questions [ Behrouz ] asked. You were together, I think. You asked how many patents do we have. We have 111 patients. 52 are granted, 59 non-granted. Do we have offices in China? Yes, we have offices in China. Our China operations and customers, however, a very small part of our overall business. Do we have more employees in the U.K. than in U.S.? No. We have more in the U.S. How many countries are we located in? We operate in over 90 countries. When will 5G be available to the people of India? We've seen 4G being available to Indian citizens. And given the historic pull trend, I think we should see 5G adoption very quickly in India. What's the amount of spend on CSR? And are we doing any work for floods in Assam? In this -- in FY '20, our company spent about INR 123 crores in many initiatives, and that includes our contribution to the PM CARES Fund of INR 20 crores. Our Tech Mahindra Foundation works with various governments on such cases, and we will continue to be of help to the country wherever needed. [ Hitokshi ] did not join Mr. [ Saraf ], again, thank you for joining us. It is a pleasure to meet you. You asked how many employees are working from home. And we've got over 95% of employees working from home now. This is across on-site and offshore locations. You asked about the impact in China. As I mentioned earlier, I've answered this question already. We are keeping a close watch and the China operations are a very small part of our overall business. You asked about the disputed case mentioned in Page 155. Now we are contesting these disputes with certain parties. The disclosure is based on facts of the circumstances and under expert advice. Now we believe that every stance we've taken by the company is defensible and on lawful ground. You asked about the virtual AGM benefit and how much is the savings. Now expenses for AGM through VC is around INR 15 lakhs. Expenses for physical AGM last year, and physical printing of annual report is around INR 89 lakhs. So the total savings is about INR 74 lakhs. I hope that answers your question. Mr. [ Chandi Ramani ] didn't join. So Lekha-ji was the last. But given Lekha-ji, it was very unclear. We could not hear you properly. The answers -- the questions were not very clear. So do forgive us, we are not able to really register your questions, but please feel free to send these to us, and we will answer these offline. Now we will move back to the procedure. And I want to tell you all that the e-voting facility will be available for the next 15 minutes to enable those shareholders who have not cast their votes to do remote e-voting. The results will be announced on or before July 30, 2020, and the same will be intimated to stock exchanges and uploaded on the website of the company and the NSDL. After conclusion of voting, count the votes cast at the meeting through e-voting and the votes cast through remote e-voting in the presence of at least 2 witnesses, not in the employment of the company. Mr. Bhave shall make a consolidated scrutinizer's report of the total votes cast in favor or against. I am authorizing Mr. Anil Khatri, the company secretary, to countersign the scrutinizer's report. Upon the receipt of that, declare the results. The combined results of the remote e-voting and the e-voting taken place at the AGM will be declared to stock exchanges latest by Thursday, July 30, 2020, at 6:00 p.m. The results will also be placed on the website through the company and the NSDL. The results should also be immediately forward to the BSE Limited Mumbai and the National Stock Exchange of India Limited Mumbai. And now I would like to thank all the directors and shareholders for attending this AGM through VC/OAVM, and I would request everyone to take good care of yourselves and your families. Please stay safe and healthy. I now declare that the 33rd Annual General Meeting of the company is concluded.