XTGlobal Infotech Limited (531225) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. May I request the Company Secretary to commence the proceedings of the 38th Annual General Meeting of XTGlobal Infotech Limited. Thank you, sir.

Thank you, sir. A very good morning to all the members, directors and invitees. I'm Sridhar Pentela, Company Secretary and Compliance Officer of XTGlobal Infotech Limited. It is my pleasure to welcome you all to the 38th Annual General Meeting of the company. The 38th Annual General Meeting of XTGlobal Infotech Limited is being held today, Tuesday, 29th September 26 at 10 a.m. IST through video conferencing mode in accordance with the applicable provisions of Companies Act, MCA Circular and SEBI guidelines. The registered office of the company shall be deemed to be the venue of this meeting. I confirm that the requisite quorum as described under Section 103 of the Companies Act 2013 is present through video conferencing mode. Accordingly, the meeting may proceed to transact the business set out in the notice. The notice convening the 38th AGM together with the annual report for the financial year ended 31st March '26 has been circulated electronically to the members, whose e-mail addresses are registered with the company. The proceedings of the AGM are being recorded, and the recorded transcript will be maintained and reported as per the rules and regulations. The transcript will also be made available on the company's website. Before we commence the business of the meeting, I would like to briefly explain the procedure to be followed during the meeting. Members participating through online shall be [ recorded ] for the purpose of quorum. Members will remain on mute, except when called upon to speak. As the AGM is being conducted through online mode, physical attendance of members is dispensed with and appointment of proxies is not applicable in the manner described for the physical meeting. Corporate members may authorize their representatives in accordance with the notice. The company has provided remote e-voting facility through KFin Technologies Limited. The voting period commenced at 9 a.m. on Friday, 25th September '26 and closed at 5:00 p.m. on Monday, 28th September 26. Members who have already cast their vote through remote e-voting facility may attend the AGM but will not be entitled to vote again on the same resolutions. Members who have not cast their vote through remote e-voting and entitled to vote may cast their vote through remote e-voting facility provided during this AGM in accordance with the notice. There will be no voting by show of hands. The cutoff date for determining members entitled to vote is 23rd September '26. The results of the remote e-voting and voting conclude connected during the AGM, together with the scrutinizer's report will be submitted to stock exchanges and placed on the company's website within the applicable timeline. The registers and documents required to be available for inspection have been made available electronically in accordance with applicable requirements. M/s. VCSR & Associates practicing company secretaries have been appointed as a scrutinizer to scrutinize the e-voting process in a fair and transparent manner. For the benefits of the members, I'll briefly introduce the directors by highlighting their qualifications and personal experience. To start with, Mr. Ramarao Atchuta Mullapudi, who is the Managing Director of the company and also serves as CEO, President and Director of XTGlobal Infotech. He has over 3 decades of leadership experience in the IT consulting and software solutions. He has been leading XTGlobal focused on technology delivery through its IT centers in Hyderabad, Visakhapatnam and operations in United States. Prior to Global, he worked with global organization, including Alcatel and AT&T. He holds a bachelor degree in statistics, masters degree in computer applications and the graduate of the Harvard Business School OPM program. Now I request Ramarao to kindly introduce himself and state the location from where he is participating.

Thank you, Sridhar. I am participating from Kleinwood, Texas.

Thank you, sir. Next, Mr. K. V. Narasimha Raju. He is an independent executive director of [indiscernible]. He is also Chairman of the Audit Committee. He is a fellow member of Institute of Chartered Accountants of India and has about 30 years of experience in accounting, auditing and finance. He has served as partner in audit firms and has also held senior positions in UAE, including as Finance Controller and Director and Partner of an auditing and business consultancy firm. He is presently practicing as chartered accountant in Hyderabad. Now I request Narasimha Raju sir to kindly introduce himself and state the location from where he is participating.

Good morning, everyone. I am K. V. Narasimha Raju, participating from my office in Hyderabad. Thank you.

Thank you, sir. Next to me is Vuppuluri Sreedevi, she is a whole-time Director of the company and is a member of Audit Committee and Stakeholder Relationship Committee. She actively participates in the day-to-day affairs of the company. She holds a bachelor degree in commerce and has expertise in management and the operations of the company. Now I request Sreedevi Madam to kindly introduce herself and share the location from where she is participating.

Good morning, everyone. I'm Vuppuluri Sreedevi. I'm attending the meeting through -- in Hyderabad from my house through video conference. Thank you.

Thank you, ma'am. Next, Mr. Saibaba Karuturi, Non-Executive Independent Director of the company, has about 33 years of experience in management, administration and manufacturing. He is also the Chairman of Nomination and Remuneration Committee and Stakeholder Relationship Committee and a member of Audit Committee. Mr. Saibaba Karuturi is unable to join today's meeting due to unavoidable personal circumstances. His responsibilities in connection with today's meeting will be attended to by the Chairperson, Mr. K. V. Narasimha Raju. We shall now proceed with the introduction of next Director, Mr. Malireddy Jagannatha Prasad. He is a Non-Executive Director of the company, and he is a member of Nomination and Remuneration Committee and Stakeholder Relationship Committee. He is an associate member of Institute of Automotive Engineers. He worked as a service engineer with Bajaj Tempo Limited, Pune and subsequently served for about 31 years with the Transport and [ Panchayat ] departments of Government of Andhra Pradesh. He also served as General Manager of [ Godavari ] Plywood Limited. He holds degree in Technology and Mechanical Engineering from JNTUA [indiscernible]. I request Jagannatha Prasad to kindly introduce himself and state the location from where he is participating. Due to some technical problems, he joined...

He joined and then left. Maybe he'll rejoin.

Okay. We'll proceed with Director Mr. Srinivasa Kosuri. He is Non-Executive Director of the company. He was a promoter and CEO of Network Objects Inc, a U.S.-based IT, [ ITS ] corporation. He has over 15 years of experience in the IT industry prior to establishing Network Objects Inc. He holds a Master's degree in chemical engineering from IIT Kharagpur. Now I request Srinivasa to kindly introduce himself and the location from where he is participating.

This is Srinivasa Raju Kosuri. I'm attending the meeting from Dallas, Texas remotely.

Thank you, I also acknowledge the presence of Mr. Raghuram Kusuluri, Chief Financial Officer of the company. The representative of the statutory auditors, secretarial auditor and scrutinizer are also present at the meeting. The notice dated September 26 convening the Annual General Meeting and the annual report for the financial year ended 31st March '26 have already been circulated to the members electronically. With the permission of the members, I take the notice as read. I now request the Chairperson of the company, K.V Narasimha Raju to formally call the meeting to order.

The requisite quorum having been confirmed, I declare the 38th Annual General Meeting of XTGlobal Infotech Limited duly constituted and call the meeting to order. I request the company Secretary to proceed with the business of the meeting.

Thank you, sir. The statutory auditors, M/s. C. Ramachandram & Co., Chartered Accountants have issued their report on the stand-alone and consolidated financial statements for the financial year ended 31st March '26. The secretarial auditor, M/s. VCSR & Associates, has also issued the secretarial audit report. There are no qualifications, reservations, adverse remarks or disclaimers requiring the reports to be read out before the members. The reports from the form part of annual report to the members and are also available for the information of the members. Now I request Managing Director to proceed with the presentation. Thank you.

Thank you very much, Sridhar. Good morning, all of you. Welcome to 38th Annual General Meeting of XTGlobal Infotech Limited. Next slide, please. Our company at a glance, we are serving customers from last 38 years, currently have 750-plus employees with 150-plus customers in 7 core industries that we are serving. For fiscal year 2025 and 2026 in focus, we have started AI expansion, successfully launched the AI practice in August 2025, delivering high-impact AI-driven solutions across key sectors, including health care, public sector and transportation. Infrastructure and model scaling, advanced our proprietary GCC-as-a-Service model backed by enhanced delivery capabilities in Hyderabad and Visakhapatnam. Global market penetration, initiated target geographic expansion into the European and Australian markets. Partner synergy, developed mature deep-tier joint engagements through established Microsoft and Oracle alliances alongside the ongoing upgrades to our surplus solution. Next slide, please. Now our stand-alone financial performance. For fiscal year 2025, 2026, we have about INR 72.43 crores of revenue from operations, with INR 7,655.19 lakh total income and profit after tax of INR 6.8146 crores and earnings per share of INR 0.49. For key takeaway, stand-alone revenue remained broadly stable, while profit after tax increased by 39.23% to INR 6.8146 crores. For our consolidated financial performance, we have about INR 368.7212 crores versus -- total income of INR 369.2497 crores and profit after tax of INR 14.6211 crores and our EPS is INR 0.84. For compatibility note, Network Objects Inc became a subsidiary of XTGlobal, increased its holding to 51.33% consolidation is on a line-by-line basis from January 2025. The annual report notes that this affects direct period-to-period compatibility. Next slide, please. Year in review, key business and strategic developments in fiscal year 2025, 2026. The AI practice, formally launched a dedicated AI practice in August 2025, successfully deployed AI-led engagements across the transportation, public sector and health care verticals. GCC-as-a-Service. We expanded the GCC-as-a-Service model, scaling operational delivery through the establishment of strategic centers in Visakhapatnam and Hyderabad. International footprint. We established an international footprint by initiating market entry and operations in Australia and Europe. Surplus and partnerships. The accounts payable automation platform continued to evolve. Oracle and Microsoft partnerships deepened. Industry presence, continued engagement with global forums, including IBTTA and strengthened vertical-specific positioning. Client trust, Upskilled and expanded client portfolios into high-margin AI-led transformations and large-scale public sector contracts. Strategic focus, three key areas highlighted in the annual report. GCC-as-a-Service, established scalable capability hubs supported by robust delivery discipline, rigorous governance frameworks and a sustainable architecture for long-term growth. Industry vertical focus. We expanded our market presence within the transportation sector and maximized penetration across existing strategic verticals where XTGlobal processes established delivery capabilities. AI with responsibility and precision, deploy AI technologies to complement human judgment, ensuring full integration with legacy systems and direct alignment with measurable organizational outcomes. Next slide, please. Industries we serve, BFSI, finance, operations, automation, regulatory reporting, data engineering and back-office processing. Toll, transportation and logistics, transaction processing, image review, violation processing and customer service. Sports and media and entertainment, content operations, audience analytics, digital asset management and platform engineering. Information technology, engineering support, quality assurance, technical documentation and managed delivery. Health care and life sciences, revenue cycle management, client processing, clinical data integration and secure PHI handling. Public sector, application modernization, legacy migration, data management and citizen services. Telecommunication, network operation support, customer experience, billing and revenue assurance. Next slide, please. Four delivery models defined by -- for dynamic client needs. GCC-as-a-service, AI-enabled offshore extension and with dedicated talent infrastructure and governance. Managed services, ongoing operational ownership against agreed service levels and continuous improvement. Statement of work, defined scope, deliverables and timelines with fixed-outcome accountability. On-demand talent solutions, experienced personnel deployed when scale, specialization or speed is a constraint. Next slide, please. Capabilities across the year. AI applied with care; application development, production, product engineering; data engineering, analytics and reporting; cloud modernization, Azure, AWS, Oracle Cloud; automation with RPA and AI-assisted operations; Microsoft and Oracle ERP support; SAP support; quality engineering and assurance; finance and accounting operations with Circulus; recruitment, HR and payroll services; image review, document processing and transaction operations; and infrastructure with workspace connectivity and management. Key client wins in this year, selected engagements highlighted in our annual report. In February 2026, we won State Transportation Agency AI Enablement Engineering Services selected through a multi-vendor RFP. In March 2026, leading U.S. health care organization AI Enablement focused on clinical data processing, revenue cycle optimization and compliance automation. April 2026, U.S. State Transportation Agency Enterprise eForms modernization program, leveraging Adobe Experience Manager. Next slide, please. GCC-as-a-Service, a scalable delivery model backed by established infrastructure. We have 2 delivery sites, one in Visakhapatnam and one in Hyderabad with 2 lakh square feet of office space. We can -- with a seating capacity of 6,000 seats in Visakhapatnam as production delivery, Hyderabad has redundancy and delivery support with low minimum pilot approach before scaling, Governance delivery leadership and ready to deploy teams. Global footprint and subsidiaries. Wholly owned subsidiary fiscal year 2026 turnover with INR 18,199.16 lakhs, profit after tax INR 503 lakhs. And in Network Objects, 51.33% holding with fiscal year 2026 revenue of INR 19,016 lakh, profit after tax about INR 636 lakhs. And we started Australian and European markets last year. And Network Objects became the holding to 51.33%, consolidation is reflected from January 2025. Next slide, please. Building with conviction, executing with discipline, growing with purpose, engineering for the future. We translate vision into execution by engineering scalable, secure, cost-efficient and sustained technology that anticipates tomorrow's challenges. Domain-driven technical mastering. We place deep industry domain knowledge at the core of our technical capabilities, ensuring our solutions are profoundly relevant and impactful. Product-minded engineering. We systematically blend rigorous engineering disciplines with agile product thinking to elevate the quality and market readiness of our technology services. Intelligence-led growth. We are anchoring our next growth horizon in targeted innovation, infrastructure acceleration, advanced cybersecurity and operational intelligence to maximize systematic reliability and efficiency. Global scale and India routes. We anchor our operations in domestic partnerships while leveraging India's world-class talent to serve and transform the global market. Value and trust ecosystems. We are building an enterprise dedicated to maximizing customer value and driving long-term shareholder wealth anchored by trust, resilience and security in every relationship. Continuous AI evaluation. We treat AI-enabled modernization as a permanent continuous business agenda rather than a transactional onetime migration project. Strategic and disciplined alliances. We selectively cultivate partnerships based on strict strategic alignment, sustainable margins and rigorous risk management. Accountable for outcomes. We are evolving from a traditional IT services provider into a true strategic partner, shifting our mandate from delivering technology to owning business results. Agile talent adaptation. We cultivate a continuous learning culture, empowering our people to rapidly adopt and apply emerging capabilities for a sustainable competitive advantage. Thank you all of you. And I want to thank Mr. Narasimha Raju and Jagannatha Prasad, directors, outgoing directors. Thank you for all your services over the last few years as your term is ending this annual. Thank you very much. Back to you, Sridhar.

Thank you, sir. Dear members, there are 7 agenda items for consideration and approval of members at today's meeting. I'll read out each item for your convenience. The detailed explanatory statements and the complete text of the resolutions are contained in the notice already submitted to the members. Ordinary business, item #1, to receive, consider, approve adopt the audited stand-alone and consolidated financial statements of the company for the financial year ended 31 March '26 together with the reports of the Board of Directors and auditor's report thereof. Item #2, to appoint Vuppuluri Sreedevi, number 2448540, who retires by rotation and being eligible, has offered herself to reappoint as director. Item #3, to appoint M/s. C. Ramachandram & Co., Chartered Accountants, firm registration number 002864S, as the statutory auditors of the company for a further terms of 5 consecutive years from the conclusion of the 38th AGM until the conclusion of 43rd AGM at the remuneration and the terms set out in the notice. Special business item #4, to reappoint Vuppuluri Sreedevi as Whole-Time Director, designated as Executive Director, for the period of 5 consecutive years from the conclusion of the 38th AGM on the terms and remuneration set out in the notice. Item #5, to appoint Jitesh Raghu Mullapudi, number 11878436, as a Non-Executive, Non-Independent Director of the Company, liable to retire by rotation. Item #6, to appoint Mr. Venkata Madhusudhana Rao Paladugu, number 08644451, as an Independent Director of the Company for a first term of 5 consecutive years from the conclusion of the 38th AGM. Item #7, to approve the material related party transactions proposed to be entered into the company subsidiaries, including XTGlobal Infotech Limited, U.S.A., Network Objects, Inc. U.S.A., during financial year 2027. The explanatory statements, material facts, disclosures and other details related to special businesses are already set out in the notice and are not being repeated. Members may seek clarification on any agenda item during the Q&A session. We now proceed to question-and-answer session [Operator Instructions] Company will endeavor to address the questions relevant to the agenda and within the time available. The company reserves the right to limit the number of questions at the time available to each speaker to ensure that the meeting proceeds smoothly. Now I request moderator to invite registered speaker shareholders and speakers.

Thank you sir. out of 16 speakers registered, only 3 are currently available. And we call them one by one as per the order of registration. We now invite our first speaker, Mr. [ Srikath Javar ].