Cigniti Technologies Ltd — Call Transcript 2022

Aug 10, 2022

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10[th] August 2022

National Stock Exchange of India Ltd, BSE Limited Exchange Plaza, Bandra Kurla Complex, P.J. Towers, Dalal Street Bandra (East), Mumbai – 400051. Mumbai - 400001. Fax No.26598237/26598238 Fax No.22722037/22723121

Name of Scrip: CIGNITITEC Scrip code: 534758

Dear Sir / Madam,

Sub: Transcript: Cigniti Q1 FY 2022-23 Result conference call on 1[st] August 2022- Reg

Ref: Company’s letter dated 29[th] July 2022 regarding Intimation for Earnings call under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Please find the attached herewith Transcript of Cigniti Technologies Limited for Q1 FY 2022-23 Result conference call held on 1[st] August 2022. The same was displayed at our company’s website: www.cigniti.com.

This is for the information and records of the Exchange, please.

Thanking you.

Yours Faithfully, For Cigniti Technologies Limited

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Naga Vasudha Company Secretary

Encl: as above

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Cigni� Technologies Limited Earnings Conference Call August 1, 2022

Moderator:

Good day and welcome to the Investor Call of Cigni� Technologies Limited to discuss the Q1 FY23 Results. Today we have with us from the management Mr. Srikanth Chakkilam – Chief Execu�ve Officer and Non-Execu�ve Director and Mr. Krishnan Mr. Venkatachary – Chief Financial Officer, Mr. Vinay Rawat - Chief Revenue Officer, Sairam Vedam – Chief Marke�ng Officer, Mr. Raghuram Kroviddy - president and global delivery head. As a reminder, all par�cipant lines will be in the listen-only mode and there will be an opportunity for you to ask ques�ons a�er the presenta�on concludes. Should you need assistance during the conference call, please signal an operator by pressing “*” then “0” on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Snighter Albuquerque from Adfactors PR. Thank you and over to you, sir.

Mr. Snighter Albuquerque : Very good evening to all of you. Before the call we would like to point out that certain statements made in today’s call maybe forward looking in nature and a disclaimer to this effect has been included in the earnings presenta�on shared with you earlier. The investor call may contain forward looking statements based on the currently healthy beliefs and assump�ons of the management of the company which are expressed in good faith and in their opinion reasonable. Forward looking statements involve known and unknown risks, uncertain�es and other factors which may cause the actual results, financial condi�ons, performance or achievements of the company or industry results to differ materially from the results financial condi�on, performance or achievements expressed or implied by such forward looking statements.

The risks and uncertain�es rela�ng to these statements include but are not limited to risks and risks of expansion plans, benefits from fluctua�ons in our earnings, our ability to manage growth and implement strategies, compe��on in our business including those factors which may affect our cost advantage, weight increase in India, our ability to a�ract and retain highly skilled professional and our ability to win new

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compete and integrate our expansion plans, liabili�es, poli�cal instability and general economic condi�ons affec�ng our industry. Unless otherwise indicated the informa�on contained herein is preliminary indica�ve and is based on the management informa�on current plans and es�mates. I now hand the conference over to Mr. Srikanth Chakkilam for his opening remarks. Over to you, sir.

Mr. Srikanth Chakkilam: Thank you Snighter, a good evening everyone. I'll just provide some high level commentary on the Q1 results before handing it over to Krishnan. So the company has accelerated its revenue in the current quarter by 9.8% to INR 377.97 crores, in comparison to the previous quarter and in dollar terms, that the growth is about 6.2%. The company during the quarter has won about 13 new clients, and those clients include several new ver�cals. And like I men�oned in the previous quarters, we con�nue our enhanced focus on offering digital transforma�on services and we are seeing some offshoots of our efforts from the efforts that we are pu�ng in the previous quarters, we've been able to take the offerings around data analy�cs, data quality a�er, etc. to several of our exis�ng clients, and we've had encouraging movement towards our overall vision. The company's investments in sales and development has also helped lay a founda�on for growth and we are posi�ve about the con�nued momentum. In line with our strategy to go beyond digital assurance services. Our board has also approved the acquisi�on of Aparaa Digital, which I've updated in the previous call as well it's a specialist AIML data and block chain engineering service company that operates under the brand name RoundSqror an all cash deal of $4.8 million. Follows the acquisi�on is a step towards bolstering Cigni� strategic pursuit of becoming a specialized digital engineering and assurance service provider. So the EBITDA for the quarter stood at 44.5 crores and has increased by about 36.6% compared to the previous quarter. The company is op�mis�c that it shall be able to conduct several op�miza�on measures which it has already ini�ated, and coupled with growth to in the exis�ng accounts and beyond. So from a client perspec�ve, we're also seeing that especially banks companies, and financial ins�tutes, are sort of slightly becoming conserva�ve on spend in line with the macro sen�ment. Although the demand for their IT ini�ators has not necessarily slowed down significantly. We con�nue to keep a watch on these trends and are we are cau�ous on ourspend as well. Overall the year has started with increased revenue and improved margins as compared to previous quarter. At this point I will have Krishnan give highlights about some of the financial aspects. Over to you Krishnan.

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Mr. Krishnan Venkatachary: Good evening to everyone and thanks for joining the call. I think by far this quarter is a very good quarter and we have reversed the industry trend in terms of trying to give a posi�ve growth and also the outlook remains posi�ve from our side while the global recession, which people are talking about has checked in or se�ng in whatever it is being. But we have factored in various factors into it and which my other team members will be covering up. But I think we have moved up the value chain very clearly because over the last six quarters, the kind of investments what we have made have started yielding results be it in terms of people, be it in terms of technology, be it in terms of the management �me to focus on this strategy with respect to the ge�ng accounts while the growth has been on quarter to quarter basis, we have moved on a dollar term from 46.6 million to 49.17 million, which is roughly about 34 crores, which is 9.88% in rupee term and about 6.5% in terms of the dollar terms, the outlook remains very bright in terms of based on the current order book posi�on which we are closed one to be executed during the current year for the balance of the year between July and March remained very healthy and giving us the confidence that the outlook remains posi�ve and stable. While the top 20 accounts have contributed about close to 46% of the revenue, the rest of the accounts have contributed to about 54%, but I think we have focused on the top 70 accounts which is contribu�ng about close to 67% of the revenue. The dollar rate on the offshore and on site have moved up by about a half a dollar each and while it is so, I think the varia�ons in terms of the dollar rupee varia�on, It will be given effect to the same in the books in the current quarter in the fully blown way, which we expect to happen. Our u�liza�on has remained healthy, we have moved up in Marchin terms of u�liza�on from 74 to 77 in the offshore and on site remains constant at about 96%. The total serviceable clients during the quarter has been 235. We have won about 13 clients during the quarter with an order value token signed at about 65 million during the quarter. The receivable days has shown a remarkable improvement and we are there at about only 56 days in terms of DSO on the enhanced revenues and we con�nue to remain buoyant while the geographical sectors as they have predicted out, I think BFSI tops with about 21%. And again followed by travel and e-commerce at about 17% and 13%. The efforts have all been made, basically, to really a remix on the pyramid and to make con�nuous efforts to see that the bo�om line as well grow in tandem with the top line to a reasonable extent, we have generated a posi�ve cash flow, about close to INR 30 to 33 crores applying for taxa�on, probably. We are in that about close to a net surplus of fi�een crores. The current year we have seen a couple of milestone based on the approval from the board and relevant shareholders’

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approval wherever required. A second year consecu�ve dividend has been applied and this was in July. We have done a buyback of shares worth about INR 47 crores, including taxa�on during the month of June. We have also the notable thing being is that an all cash acquisi�on, which has been done, payout has been done out in July with all this their cash posi�on looks very healthy and we are confident on marching ahead. And now with these few words very clearly I invite my Chief Revenue Officer Vinay Rawat to talk about the sales marke�ng efforts, over to you Vinay.

Mr Vinay Rawat:

Good a�ernoon to everyone. I think some of these things actually have already been said, but I will just men�on that as you heard there is a macro environment which is actually of uncertainty, which definitely is causing some recessionary pressures where the clients are priori�zing some cost ini�a�ves. However, we are actually hedging that en�re thing through offering digital services in addi�on to our assurance services as a result we actually had a fairly robust order book in the first quarter as Krishnan just pointed out, and our order pipeline actually remains at a very elevated level and the other thing which actually have not noted so far is over our overall sales cycle, so there is no meaningful change. We have a sales cycle indica�ng that our clients are coming back, but nevertheless we definitely see some very cau�ously op�mis�c view from our customers. They definitely are de priori�zing some of the cost and some of the other ini�a�ves which otherwise they would have taken. So as I said earlier, the cost ini�a�ves are definitely taking priori�es at our customer levels. Other thing, I just want to highlight, which Srikant covered very briefly about the data engineering and assurance services. That's something which is actually we have started post over acquisi�on of Round Sqr talking to our customers and the ini�al reac�on of our customers actually have been very posi�ve. That certainly gives me confidence that going forward we will definitely be a partner of choice for our customers, par�cularly in their digital ini�a�ves, and will con�nue to maintain our strong pipeline. We invested very significantly in our sales process modifica�ons that’s also yielding a good amount of process documenta�on, or if you will be capturing some of the data which we were otherwise struggling earlier, so I think that's pre�y much it from my side. I will be happy to answer any other ques�ons with regard to sales and sales opera�ons. Over to you Krishnan

Mr. Krishnan Venkatachary:

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Mr. Sairam Vedam:

have outlined as a strategy. How do we posi�on ourselves as a full cycle value added services provider for all our exis�ng customers, Number one, the amplifica�on of our service por�olio through the augmented digital engineering on top of our significant worldwide leadership in digital assurance por�olio today posi�ons us as a strategic partner. Many exis�ng customers today are having very interes�ng conversa�ons with us. We're also having a significant focus on account based marke�ng to go deep into our account, to support the overall sales accelera�on process that Vinay is driving on the field. And since I get to talk to all the industry analysts represen�ng Cigni�, all the analyst interac�ons we had with Carter, Nelson Hall, barrister ISD have significantly appreciated the acquisi�on that we made and you would see some commentary and outcomes of this by one quarter ahead from some of these analyst firms as well. And to sum it up, I would just like to summarize from Gartner statement while the IT services industry buy in itself is expected to grow about 8.3% by 2023 to about 1.3 trillion Dollars with a moderated growth of 6.2% in 2022. I would like to draw a�en�on to the famous statement that John-David Lovelock, the Distinguished Research VP at Gartner made significant amount of investments that organiza�on enterprises globally who do not invest in the short term will likely to fall behind as against investmentsin midterm and long term digital net growth, so that's a proof point for what we are seeing. We believe that the market is here to stay and grow or companies were focused and that signal were eternally focused in bringing back the fundamentals that we as a management or internally focused upon. That's from my side. I will be available for any ques�ons to supplement. Thank you very much Krishnan sir over to you.

Mr. Krishnan Venkatachary: terms of the customer and delivery and the client focused technological offering work we're providing to the customers.

• Mr. Raghuram Kroviddy: Thank you Krishnan. I think as the opening remarks of the calls stated, we had a fantas�c quarter in terms of accelerated revenue growth. Our broadened services have started resona�ng with the clients. We have had a lot of discussions with our clients with respect to our addi�onal digital services that we were bringing to the por�olio and we received a very good response and as part of that as all of you would

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know, it's also important for us to gear up on establishing that capability and scaling that capability within the organiza�on. We have taken steps in that direc�on and as the year progresses we will be able to mature those prac�ces as well. On the customer sa�sfac�on front are recently concluded survey gave us a customer sa�sfac�on of 3.8 out of 4 across 75% of our clients in terms of response not only our exis�ng digital assurance services that we provide, but the newer services in the digital engineering space that we are going a�er have been resona�ng well with the clients we are con�nuing to invest in a key IP components that will help us deliver value to our clients both in terms of reducing our costs to serve and also deliver value, especially in the data analy�cs space in the low code, no code pla�orms and also AIML incorpora�on into a lot of automated tools so we are seeing a significant up�ck in terms of acceptance and resonance there and we are very confident that we will be able to add more value to our clients in the upcoming quarters. Lastly, from a margin standpoint also as Krishnan said and also Srikant alluded to in the opening remarks background. We have had a be�er quarter in terms of our margins. We saw the previous quarter irrespec�ve of the fact that we took a hit on the wage revision that happened in the previous quarter. So that's the broad outlook from our delivery standpoint. Krishnan thanks over to you.

Mr . Krishnan Venkatachary: Yeah, thank you Raghu. Gentlemen now we can open the forum for ques�on answers.

Moderator:

ahead.

Rutvik Pa�l:

So does the management see any improvement in the margin going forward and like what's the strategy like coming in the next coming quarters for the same?

Management:

OK, to answer it, what I understand from your ques�on very clearly you're talking about the margin moving forward and also the coming quarters in terms of how it's the outlook looks. OK, we are not currently, definitely as we have been sta�ng very clearly. We are not in the process of giving any guidance clearly, but however if you look at it, I think as I as we stated earlier, is that we did take a genuine it in our margins in terms of the investments which are necessitated for the business transfer, because we do not carry that expenses into the balance sheet, and we observed that in the quarter which it is being spent. The second por�on is that we it was necessitated also by the environment in terms of the high level a�ri�on which we had to spend out in a revision in November and revision again, which is an annual cycle in April. Which

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was necessity at that �me. So keeping all that and a one�me cost all that which is not ge�ng repeated out or clear. We are op�mis�c cau�ously that these margins will come back to the previous levels where we have been very clearly and the outlook remain posi�ve. In terms of the business, as when I did comment in terms of how we have penetrated into the accounts and how Raghu has said that we have moved ahead in terms of offering evaluated services with these combina�ons currently, with the current set of order book and also the kind of order wins. What we are making, basically I think the outlook remains absolutely posi�ve.

Rutvik Pa�l:

Management:

Rutvik Pa�l:

Management:

quarter end? And is there any changes that we will see for this mix going ahead?

I would put it this way very clearly is that we have op�mized to a greater extent on the pyramid with respect to the onsite and offshore with respect to the resource mix. If you look at the resource mix, clearly we are there at about close to 23% to 77%. If you look at it on the revenue front, marginal points in terms can come through with respect to offshore, but I think it will remain more or less at this point, We are trying to look at it because my offshore is more and more margin oriented so I may have some amount but the newer technology is coming through very clearly. I think it's essen�al to be near to the client, which is very important. So invariably I think I would definitely not count on this lever invariably, rather I will count on the lever in terms of the business transforma�on ini�a�ves which I am taking with respect to the newer offerings And the pyramid mix with respect to the newer set of people coming in so invariably to answer your ques�on, my next, more or less seems op�mized. Barring per 1% �lt here and there.

OK, so also the a�er the recent buyback of shares by the management in this year in the FY23 are we going to see or witness any such kind of corporate ac�ons like that.

It is for the board to decide from �me to �me in terms of these kind of proposals to run through what we have done now the law s�pulates for us to wait for another 12 months to do that, invariably, so what we have done is basically in the while there have been amount of cash,what best can be done is to give a reward to the investors in terms of trying to be dividend distribu�on paid by back is various ideas which le� or right now I think we also have various measures coming up with respect to all possible ideas will be signed up and reviewed by the board. So invariably what is permissible within the law and what is permissible within the company, considering

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the growth and considering the aggressive growth plans, what we have over the next five years, I think an appropriate ac�on will be taken.

Moderator:

Deepak Poddar:

Management:

Deepak Poddar:

Management:

Thank you very much. Our next ques�on is from Deepak Poddar of Sapphire Capital.

I just wanted to understand that we have said in the past as well that 15% EBITDA margin has always been our target rate and you said in this call as well that we are op�mis�c about that the margins will come back to this previous level. Maybe we are referring to this 15% EBITDA margin.

We are not going to give guidance but we have an intent to obviously push the margins beyond.

And any rough �meline that we are looking at, I mean what sort of �meline we might look at over the bank.

improve Q on Q. Let me put it this way Deepak. Probably we are doing the right things now. Well it's not that we have not done the right things. We have adopted, transformed the business in doing the right things over the last two years, keeping the COVID in mind. So which means that there is a technology push. There is a transforma�on push with respect to the people and the way we approach at what level and where we are crea�ng the s�ckiness. So we have done all the. Where is the ques�on that the margins cannot occur as we have seen in this quarter. So this will accrue definitely because the chain of businesses, but I think any business as its maturity cover as it starts when we have implemented all this, what we have invested over the last six quarters have seen the results in a quarter, but I think it will see an upward trend moving up. So probably we'll have to wait for a couple of quarters when we see a trend line where it is going. You can't fix a defini�ve deadline to say that, in the next four quarters I'm going to be at 18%, 16%, 10% because this is business and where we are going to apply and these levers are working and we will continue the trend line in such a way. We tried to accelerate this as much as possible as a company will be more focused in terms of giving their return to investors and we'll be more keen to have it at the earliest, but I don't think We can tag a �meline to it. I'm sure you'll agree to this

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Deepak Poddar:

as well our $500 million growth journey in five years, so that's the vision we have. I mean, in terms of the things that we are doing.

Management: We are on track so there's an internal region mission statement guidance reference book that we have and we are on track to achieve those milestones

Moderator:

Thank you. The next ques�on is from Dipen Sheth of Buoyant Capital.

Dipen Sheth:

So the ques�on I have is actually on the delivered margins this quarter. And while we're all focusing and talking about the EBITDA margin, I think the basic unit economics of the business and indeed, the a�rac�veness of this kind of business comes from the gross margin that we can deliver, and frankly, this quarter has probably seen the worst gross margins that I've seen in recent �mes. We are now under 20% or am I ge�ng something wrong here?

Management:

No, actually, I can your ques�on is probably then I can give the sta�s�cs is that our gross margin if we have to account it in two forms in terms of one is an account margin and second thing is that giving all the provisioning for the buffer and various other things put together is that my gross margin stands at about 32.3% while my account margin should stands at about 37%. While 32.3 definitely considering salary divisions across the board and last quarter has been the probably the worst hit where we have done a gross margin at about 30% or so. So we have increased about 200 basis points from that. However, on a standalone basis on a month on month basis, we look at it on the month of June. We have already touched the magical numbers edging close to 35, which is precisely at about 34.85% in terms of gross margin. So gross margin overall for the quarter has been there at about 32.3 and this is not the worst quarter we have seen. The worst quarter which we have le� behind. And we have moved ahead and we do an�cipate that a posi�ve outlook moving from here.

Dipen Sheth:

So I really don't know how you compute this margin now because all I have in your stated financials is that I'll tell you how I do this. OK, I just add up your employee benefits expense and the contrac�ng costs. And then I subtract them from the delivered revenues, and if that's what I do, then the en�re margin expansion sequen�ally is actually due to the reduc�on in other expenses, which shouldn't and doesn't figure in gross margins. At least that is the way I'm doing it, I don't know how you guys do this.

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Management:

Dipen Sheth:

Management:

Dipen Sheth:

Management:

If you look at it in terms of the exchanges and various other mechanisms. So basically there are only two lines of items which are reported. One is that employee benefit expense and the other is the other expenses. The employee benefit expense includes the non-billable people such as sales and general administra�on, marke�ng all these costs. I will have to dissect and give you the data. Very clearly which I will take it a point to provide it in my next investor presenta�on in terms of giving up completed break up for that, salaries cost so that you'll be able to compute the very clear over the next quarter as to how the margins are spanned out.

I really don't want to stretch this point. All I'm saying is that if I do a like for like comparison with the sequen�ally previous quarter or the one year ago. A�er this margin number, if I just take out the headline manpower costs whether you by adding up employees and hired contractor costs this as a percentage of revenues seems to be the highest it has been in the three reported quarters on this quarter.

Yes, then it will be because it depends on the investments where it has gone in. The investment is not affec�ng my gross margin. But it will affect my EBITDA. If my investments have been remixed, for example, I could have op�mized on my direct delivery cost, but I could have spent a li�le bit on the sales and marke�ng to really accelerate or push the accelera�on for the next a couple of years. So I do understand and take a point simple to talk about it when my revenue quarter to quarter is increased by 34 crores. My salary cost has also increased, including contractors by 34 crores. So my comparison would be very clearly in saying that how my gross margin is panned out purely by delivering the goods and how much I've spent towards is, say, send them and how much I've spent towards the end date and where I can try to go ahead and get back to the table to see that. OK, these are genuine investments which are necessary to isolate it for the future. And also I can turn on it and then op�mize on it. So that is I can give you a break up completely on that over the last six quarters or eight quarters or whatever it is can probably we can take it up now.

falling by some 12-13 crores sequen�ally. So what is this reduc�on a�ributable to and how do we interpret this number?

Yeah, see if you look at it invariably the other expenses, there has been some reduc�on in one is in the ascendant cost. Second thing is that we also had some legal costs, which is reduced, and the third one is that we also have the API is reversal cost,

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which we sat in the other cost in the previous quarter. So all that. Have not repeatable and that is one thing which is cause for reduc�on.

Moderator:

Abhishek Tilwani:

Management:

Abhishek Tilwani:

Management:

Abhishek Tilwani:

Management:

Thank you. The next ques�on is from Abhishek Tilwani, an investor. Please go ahead.

My ques�on was around the acquisi�on. So what kind of revenues and margins was the latest that we had from Aparaa digital private limited?

stack, which can really penetrate into the set of readymade channel of accounts which are available for us. So they have done a revenue of about close to 2.8 million when we acquired them in last March which is the last year financial number. And projected to do a revenue of about 5.7 million this year while 2.8 million for them they carried out an EBITDA which was about close to 18% or so. So the current year basically more orders could be there or probably around that shared percentage lower because they need to invest back into a li�le bit on the sales efforts. Also, along with our sales teams penetra�ng into it so that could be the number which we are looking at about. Say we can round it out to say that this year could be about 6 million with about 18% EBITDA coming through, but what is more essen�al and what is more cri�cal for us in the current year is that the penetra�ng pipeline at which they're going to contribute for the en�re combined Cigni� growth on the digital revenue where we have already iden�fied pipeline work. Possibility is that it could be in the range of about 20 to 30 million generate team which can get executed in a period of about 12 to 18 months’ �me frame, that is what we are targe�ng.

So what we are saying is from 6 million it can go to approximately 15 million in in next couple of years.

Absolutely, but then that will not be a guidance. It is only based on certain es�mates, which we are trying to go through because the kind of acquisi�on is basically more of strategic in terms of trying to increase our bandwidth of offerings to the exis�ng clients and to remain s�cky and then move forward and penetrate.

And when would this revenue integrate into our numbers?

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Abhishek Tilwani: OK, my next ques�on was, I mean, can we expect the Cash from opera�ons for this year could be around 130 crores?

Management:

If we go by the numbers what it stands out today basically, from Q1 I expect this to be in the range of about 90 to 100 cores

Abhishek Tilwani:

And this is a�er adjus�ng all the working capital side.

Management:

Absolutely.

Moderator: Thank you very much. The next ques�on is from Rutvik Pa�l of Chrys Investment. Please go ahead.

Rutvik Pa�l:

So a couple of ques�ons Sir. One is on the human capital side so the IT industry is facing couple of a�ri�on though the industry overall so how has overall the company geared to tackle this kind of a problem?

Management:

The trend seems to be sort of encouraging in terms of lower a�ri�on, but having said that, it's fully not stabilized yet. We are doing the usual things to control a�ri�on, but apart from that, we're also exploring innova�ve models of a�rac�ng people. Maybe part �me basis or so. So exploring we are s�ll like I men�oned in the earlier calls re-a�rac�ng the talent back, improving employee engagement, talking about things like IP and all of those things to generate excitement. That is one aspect but the other aspect is trying to see if we can look at where the models are hiring.

Rutvik Pa�l:

So I believe that the management decided to form a ESOP trust, or secondly, acquisi�on of shares. So how this is going to be structured, or is this a way to retain top talent of the company?

Management:

Yeah, so this is s�ll in the forma�ve stages. We intend to create a structure and take it to the board and of course look at it as a form of engaging people for long term, you know, valuable contributor.

Rutvik Pa�l:

OK, so could you help us elaborate on the signatories 5G assurance services and the digital model that's followed with 10 codes?

Management:

I think from a 5G assurance standpoint we had created our own IP which is called insight and the goal was to drive a lot of experience assurance, especially in the 5G

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part of that last year we sort of put together a pla�orm. We also �ed up with a couple of companies in the Dallas region, to be able to see whether we can set-up something as a joint offering and that discussions are have gone to a certain level. But we need to measure them further and therefore the whole context of 5G and digital assurance related to that today we are focusing on the experience assurance part of it. That's the offering that is at play right now.

Rutvik Pa�l:

I believe the company is also made a couple of investments in NCDs and bonds of about 1200 million a�ributes. So what's the strategy on this front?

Management:

Treasury investments for being regularly monitored. Wherever the investments are yielding with less risk in terms of an average return which are pre�y decent made around a good above industry's average. I think we are trying to take up AAA rated papers as well. And we're more constantly monitoring, and we have also during the quarter, if we look through. Basically we have also matured three of the bonds out, and I think there's a �ght leash is kept in terms of monitoring that.

Moderator:

Thank you very much. Ladies and gentlemen, as there are no further ques�ons on today's conference and I hand over the conference back Srikanth Chakkilam for closing comments, please go ahead, Sir.

Mr. Srikanth Chakkilam: So thank you everyone for your par�cipa�on in the call. I look forward to the next quarter results.

Moderator: Thank you very much, Sir. Ladies and gentlemen, that then concludes the conference call and you may disconnect the lines.

This is a transcrip�on and may contain transcrip�on errors. The transcript has been edited for clarity.

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