CL Educate Limited — Call Transcript 2025

Feb 11, 2025

ARJUN

WADHW

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Digitally signed by ARJUN WADHWA Date: 2025.02.11 19:07:41 +05'30'

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“CL Educate Limited Q3 FY 2025 Earnings Conference Call”

February 05, 2025

Management:

Mr. Satya Narayanan R – Chairman, CL Educate Limited Mr. Gautam Puri – Vice Chairman & Managing Director, CL Educate Limited Mr. Arjun Wadhwa – CFO, CL Educate Limited

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Earnings Call Link: CL Earnings Conference Call Q3 FY25
Results Link:
Consolidated Results – Q3 FY25
Standalone Results – Q3 FY25
Investor Presentation: CL Investor Presentation Q3 FY25
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CL Educate Limited: Earnings Conference Call – Q3 FY2025

Kestone Utsav Event-Video Running….

Arjun Wadhwa: You're both loud and clear. It's 03:31 pm, and I'm going to kick off the session. Ladies and gentlemen, welcome to CL Educate Limited's Q3 FY 2025 analyst call. My name is Arjun Wadhwa. I'm the CFO of CL Educate Limited, and I'll be your host today.

Welcome once again to our metaverse platform called VOSMOS, which we have been using for more than three years now for our analyst calls. This call, as always, will be recorded, transcribed, and made available in the investor zone on our website. Should you have any questions during this call, please type them out in the chat box in the bottom righthand corner of your screen. We will take them all up together towards the end of the session.

Joining me on this call today is Mr. Satya Narayanan. He's our Founder and Chairman, and Mr. Gautam Puri, Co-Founder, Vice-Chairman, and Managing Director. Gautam is taking direct reporting of the EdTech business, including our test prep business. Mr. Nikhil Mahajan, who anchors the MarTech business, is unfortunately unable to make it today as he's in the US. So, for today, I will cover the finance and business slides, and we'll take questions on MarTech. I will bring Gautam or Satya in for various questions on EdTech or any of our new initiatives when necessary.

Satya, over to you.

Satya Narayanan : Thanks, Arjun.

Alright. So, good afternoon, everyone. Thank you, Arjun. If this is a bit of a change of sequencing, normally, we do the corporate updates at the end, but this is perhaps not a corporate update, but an update, nevertheless. So, the first update that I would like to give, all of you is that the NSEIT DEX acquisition is near completion.

We can go to the next slide to see a little bit of details of that. The Share Purchase Agreement (‘ SPA ’) has been signed as you might have seen and which also was followed by the formal press releases from both sides. There are a couple of, absolute closure events that are pending, such as, taking over of the board, and such couple of stuff. If any specific questions are there, Arjun will take us through that at the end. We foresee those, completing in the next seven to ten days.

For those of you, or for maybe for all of us, just as a recap of what NSEIT DEX means, to our ecosystem. On day one, it starts with an opening balance of about a top line of Rs. 200 crores, and this gives us about 17% EBITDA margin. And, we look at this inclusion or integration of NSEIT into CL as a very significant orbit changing event wherein the TAM, the assessment opportunity in India, the total addressable market is estimated to be about nine crore people and, poised to grow to Rs. 18 crores in the next five to seven years. And when we say assessment, any assessment that covers five or six areas, I'll come to that in a moment. Those are all covered here.

So, if you look at it, it could be recruitment, it could be promotion, it could be professional certifications, it could be individual certifications, it could be vocational training programs. So all of these, add up to this 9 crore going to 18 crore in a large Indian market. And this does not include the interest within the school or the within the university semester kinds of assessments, which also are slowly and surely moving towards digital. And subsequently they also are likely to move towards being on demand examinations. The most valuable thing that comes to us, from, NSEIT acquisition is the technology backbone.

And I do dare say that this has a potential to compete in the space and become an integral part of India's digital stack, public infrastructure wherein we have already seen the success of elements such as Aadhaar or UPI or Digilocker and so on. So NSEIT DEX because of its DNA, because of its legacy, because of the scalable technology platforms on which it's been built by very, very experienced and thought leading architects. We are now, in this position of this. This is one of the biggest business modes in our view along with the distribution that it has. Today, NSEIT DEX has a capability to conduct a population scale examination between a five lakh or a 25 lakh, examination in over 700 districts across the country.

And, while that being so, the greater possibility that we do see over the next three to five years is where NSEIT DEX can go international. We already have examination conducting experience in the last five years as DEX in seven overseas locations in The Middle East and, in South Asia, but this is likely to grow, as Indian education, grows in stature, as India becomes a jobs ready future jobs, granting or supplier to the world, there is a greater role that will be played by assessment companies across the globe. So this is a very orbit changing thing. It comes with good financials, and our job is now to see how do we take it from where it is to a 3x and a 5x over the coming few years. The final point to make in this and maybe I'll also follow that up in the subsequent slide is that we have a we have an exceptionally experienced team. At a future date, we will organize, an interface with the leadership that comprises the, head of business, operations head, and the technology head. I'll cover that in a moment. We'll move forward.

Arjun, thank you. One of the important things that we have worked even while this transaction was getting underway was to see how we can keep the large institutional strength of NSEIT in in the form of a very, very high caliber, hugely seasoned, respected, independent board members. And I'm very happy to share with you the following four names who have, in principle, agreed to come on board. So in a week from now, when Arjun presides over the entire changeover process, we will have a former board member of NSE, Mr. Yatrik Vin joining the board of NSEIT DEX, Mr. Krishnakumar S (‘ KK ’), who's a very well respected public markets investor for a couple of decades. His last assignment was as the CIO at Sundaram Asset Management. KK is joining us on the Board. The third and a very wonderful name to be associated with us is, Mr. R Subrahmanyam, very highly respected, highly regarded in the space of public policy, government schemes, and so on. In his last assignment, he retired as the secretary of higher education and social justice and an IAS officer of 1985 batch. And lastly, we also have been able to get, Ms. Madhumita Ganguli, who's an Independent Board member and an HDFC nominee on the CL board. For the next few years, Madhu will be the common board member and the lady board member that we need to have on the NSEIT DEX board.

Moving forward, this is the three-member leadership team. Krishnan is a President and CBO. He's been in the system, for the last nineteen years and also leading the business since 2015. Then we have Dr. Paresh who's a PhD in Computer Science from IIT Kharagpur and a very seasoned veteran who has seen the growth of NSEIT right from the role of a head of projects to now becoming the CTO over the past decade or more. And thirdly, we have Chintan Turki who's a BITS Pilani Graduate and, an extremely rich experience across a few companies before coming to, NSEIT five, six years ago, and he heads the entire operations of NSEIT DEX, business.

Let's move forward. The second quick update that I want to give you is the launch of UTSAV.

We have been speaking about it for the last quarter or two. We had a very successful launch, officially on the January 12, 2025. These are the real pictures of an event that we conducted.

It was a destination wedding in Jaipur. The boy is, of Indian origin. The girl, Rebecca, is an American girl, and this is a destination wedding attended by a few hundred guests, and it went off beautifully. The videos that you were watching as you were coming into the analyst call were the actual videos of from that wedding. I will pause here and let Arjun run the video.

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Arjun Wadhwa: Yeah. Okay. Back to you.

Satya Narayanan: Yeah. We're also happy to announce that the founding members, we've been able to rope into very successful and well-known names in the hospitality and food and beverage industry. And they join us, as founding members and Co-Promoters. We will be able to share more details of these, the event was graced by both, Sameer Puri, who's a well-known restauranteur in Delhi, and Sanjeev Kapoor, the celebrity chef. And they will be joining us, in taking to the entire range of design, execution, growth, and so on. Is this a short video of the launch, Arjun?

Arjun Wadhwa: Yes, Satya. Yeah. I'll just play it for thirty seconds. Yeah.

Kestone Utsav Launch Event-Video Running….

Satya Narayanan: Thanks Arjun

Arjun Wadhwa: Thanks, I'll just move back to the presentation.

Satya Narayanan: Yeah. So, that was the brief of the two updates that I had to give you, which were two new initiatives which are coming into our fold. I'll now hand it over to Arjun to move into the financial and business updates.

Arjun Wadhwa: Thanks, Satya. I'll just move straight away into, how this, year is looking for us so far. As you're all aware, we've grown our revenues about 5% from Rs. 255 crores to Rs. 269 crores. The EdTech business is down, by about eight crores from a Rs. 161 crores to Rs. 153 crores, while the MarTech business is up by about Rs. 22 crores from Rs. 94 crores to Rs. 116 crores. From an operating EBITDA perspective, we are more or less, similar or just about 10% behind where we were same time last year, from Rs. 20 crores to about Rs. 18 crores. And, that dip is across, both segments, a little bit more in the EdTech space than in the MarTech space.

Specifically looking at the EdTech space, as you're all aware, it's divided into three components, test prep, which accounts for about 80% of our EdTech business, and then the platform and publishing business. The test prep business has been, a little bit of a challenge this financial year as we see a lot of flux, in both our MBA and law businesses, largely on account of a lot of local competition and a lot of online players entering this space and flooding the market with freemium products. I'll spend a little bit more time on this in a later slide. But just to give you a quick overview, the test prep business, the revenues are down by about 9%. On a Platform Monetization perspective, we're up 20%, and the Publishing business is up about 8%.

On the MarTech side, we've already shown you that we're up about Rs. 22 crores. This revenue growth comes at about 19% from India and about 26% internationally. The margins, as we mentioned, are a bit lower. This is largely on account of environmental factors and how things are on the ground, especially with tech companies. But we're working to mitigate the same, and, the situation should improve considerably in, the next financial year.

From a long-term perspective, things continue to look bright. And as an organization considering, where we are looking to grow both organically and inorganically, we continue to invest in people and technology from a long-term perspective. And, you'll see that when you compare the operating EBITDA, especially looking at specific areas like, employee benefits and so on. Coming on moving on specifically to the two business lines, on the MarTech side, as mentioned, we're up at about 20%. The EBITDA, I already explained. But, specifically, in terms of what we're doing, we're looking to leverage, some of our key clients in the Indian space to open doors across APAC. We work with some of the best names in the technology space in India, including Microsoft, Dell, Amazon, Facebook, and so on. And we're looking to leverage that to get more business from Singapore and Indonesia where we have offices now. And as we mentioned, our international business is growing at 26%, so very solid on that front. VOSMOS also continues to grow well with the Salesforce coming on as a new customer across India and APAC.

We are in the process of executing seven events for them across the two regions. Four are already done and three are in the pipeline. And our meta commerce initiatives continue to bear fruit. You'd have seen in some of our older videos, we had given a walk through for all investors on the work we had done with Royal Orchid. We are happy to share that that has moved beyond the pilot stage, and we also now have a project with the Sterling Group. And Taj and Oberoi Groups have also picked up, pilots. So, all looking strong, all looking good. Hopefully, the margins will also continue to pick up over the next few quarters.

Moving on to the EdTech business, specifically the test prep side. From an enrolment perspective, our MBA numbers are up on a nine month, from a nine-month comparison of FY24 to FY25. The MBA numbers are up 14%. Some of this has come at the cost of, a fairly different kind of product mix as we see a lot of students opting for shorter duration programs and online programs and testing and assessment programs. So, what that has meant is the P X Q is lower, and so there's a revenue dip across, the MBA segment. But as we said, we're doing what we can to mitigate this, and we've launched our own series of freemium products, including an open CAT zone and so on. And, we're hoping that this picks up in the quarters ahead.

From a law perspective, we've shared in in previous sessions as well. The shifting of the exam date has impacted this market considerably, and it has, completely wiped out key two key segments of that space, which is the crash course students who would typically come after their board exams and the repeaters market who would come in the after they finish their high school. Both those markets would have contributed typically 35% to our to our total business and were very high margin businesses. Both of those don't exist anymore. But what we do see is a lot of students gravitating towards a two-year program rather than a one year program, and that has meant that we've managed to keep revenues fairly close to where they were earlier, but, yes, that has an impact on margins.

CUET also has been impacted. It hasn't grown, at the speed at which we would have liked when we launched the product three years ago. A large chunk of that comes down to the way the tests have been executed and managed. But, you know, that's something that that we are working through, and we're looking at introducing more product variants in specifically in the UG space, including hotel management programs and focusing more on our BBA and IPM segments to continue to grow that space. We've signed up 19 new partners this financial year. And, in terms of other initiatives that we've started, we've relaunched our CSAT program.

We had mentioned in our last analyst call that CSAT used to be Rs. 20 crore business for us, and, we used to handle more than 20,000 students a year at its peak about ten years ago. Then the market dynamics changed. The requirement of that exam being a necessity became, you just must get your 33% to clear it, and the number of people who would take preparation, was impacted. That exam has become much more difficult in recent years, and, there is a growing demand for it once again. So our CSAT relaunch is in process, and, we're looking at specific markets where we will look to, engage.

We are also looking at launching a whole new set of market-oriented courses, largely as an add on to our MBA prep programs. So whether it's MBA plus GMAT or MBA prep plus CFA or CPA and so on, these are other avenues that we are currently evaluating, and you should hear more about this over the weeks and months ahead. If you do follow our news, you would have also heard about our new higher education transformation initiatives with the launch of, CHEX. There's, a gentleman who has returned to the Career Launcher fold after a thirty year gap, Alok Mehta, who's joined in a dual role as CHRO for the company and as the business head for CHEX, where he will be interfacing with universities and companies, bringing CL in as the go between to help companies with their aspirations of getting quality freshers and helping universities with their placement initiatives. And you'll probably hear much more about CHEX, in the upcoming financial year.

I'll quickly move ahead to our Platform Monetization business. Happy to share this is up about 20%, and its EBITDA is up 84%. This is a business, as you're all aware, where we leverage the assets, we already have. So, the more we do in this business, it comes at very high margins. We've also looked for the first time at onboarding partners outside the CL ecosystem in this where we're looking at working with engineering and medical colleges, to sell their forms and onboarding tuition centers for the same.

And I'll quickly just wrap up by spending a few minutes on our publishing business, which has also grown by about 8%. Our total book sales so far this year are closing in on 5 lakhs. And specific segments that continue to do exceptionally well are RRB, GATE, CAT, CLAT books doing very well. It's been a bit slow season this year for UPSC Physics Galaxy and our IELTS material, but we've tried to counter that by launching new additions, in January, specifically in the Physics Galaxy and IELTS space. That's a quick wrap from me, and I'll now throw the floor over to questions.

I see a bunch of them in front of me. If you will just give me thirty seconds, I'll go through them and pick them up and throw them either to Gautam, Satya, or take them myself, over the next couple of minutes. Satya, Gautam, anything you'd like to add?

Satya Narayanan: That that's okay, Arjun. We can take the questions.

Arjun Wadhwa: Right. Okay. A lot of congratulatory messages on the DEX deal. A lot of our consistent well-wishers over the years. There are consistent questions from Madhur, Garvit on EdTech and the test prep business and, what specifically we are doing to, mitigate, the drop in revenues in this space. GP, would you like to take that?

Satya Narayanan: Has GP been disconnected, Arjun?

Arjun Wadhwa: Let me just check.

Satya Narayanan: So maybe we should take non-EdTech questions first and then come back again. I think, I can't see him on the pane.

Arjun Wadhwa: Yeah. Just a second. Sure. Satya, let me throw one to you first. There's a question on DEX and a potential conflict of interest between our, test prep business and, the DEX assessments business.

Satya Narayanan: Okay. This is something that we have been absolutely mindful of from day zero. So, the areas where CL has test prep interest, we will not venture DEX will not venture into those areas at all, which are, essentially the mandate MBA law, IPM. These constitute 95% of our portfolio as of now. And the one is the choice of what products we will, or we will not go.

That is one. Even more important is that right at from the top-level board position, including the nominees from CL operating team. We also have taken, cognizance of the importance of this and created, processes and the Chinese wall between the two businesses. So other than me, those leadership teams or others who are going to be looking at test prep, they are not going to be active on the NSEIT side from board onwards. But at an operating level too, we are given the undertaking and we've taken internal steps over the past, many months since we had the time to make sure that the conflict of interest in these two is close to zero.

Arjun Wadhwa: Thanks, Satya. While I have you, there's some follow-up questions also on DEX. How is the company expected to grow in the years ahead of its current levels of Rs. 200 crores is a question from Garvit.

Satya Narayanan: Okay. So, Garvit, as you know, we try, we just try not to make very specific observations about revenue projections, etc. However, our, see we are the second largest player in the market and by being only in India. And we do only about 11 million assessments as DEX, in the last twelve months. That is the number of assessments that

we have done. And the market leader would be four and a half times, five times our size. So there is an exceptionally large room for growth at a reasonably healthy, clip over the next three to five years. Add optimism to it, some of the largest exams have not been attempted by NSEIT DEX, for various reasons. You know, there was little bit of a pre-COVID and in COVID and post COVID since, this asset was, planned to be, hived off over the last year and a half or two. Some areas that are very large addressable markets now come into focus, and we would like to make a very strong entry into those. So, I think, for the next three years, three to four years, we should look at how do we double this and give it a very, very impactful, profitable non-India presence while we go into penetration in India. I think there are a couple of international markets also that can be done over the next three years. So, doubling from here is the first station for us. How much time does it take? Let's see.

Arjun Wadhwa: Thanks, Satya. There's a host of other questions on DEX related to the financials, and I'll just take them very quickly. They're from some of our regulars like Hemant, Manan, and Rahul. First of all, you know, I’m just going to try and answer them as a consolidated set based on the questions that are there across the board. DEX will be a fully owned subsidiary of CL Educate. The company is called NSEIT Limited. It will continue to be NSEIT Limited till the name change happens. And as part of our SPA, we've worked out, a deal to continue to use the name formally NSEIT for a period of one year. In terms of when we expect to close the transaction, as Satya mentioned, we hope to take over the Board later this month. It might take another seven to ten days. We're working on it and hope to wrap that up as soon as possible.

When will it become when will the revenues and EBITDA start getting counted as part of CL? They will happen as soon as we take control of the company. That will become the effective date of the transaction. And, from that period onwards, the specifics, revenues, and EBITDA for the stub period of this year will come to us. And then from the next financial year onwards, it's completely ours from day one onwards. More questions related to how's the performance of, NSEIT in the first nine months of the year. Because the transaction is yet to get officially completed till we take over the Board, it's not a part of our business, so we can't declare those numbers yet. But as Satya promised, we will do a specific session where we will introduce you to the business teams there and talk about the performance of that business and where it is, what our plans are going forward, and so on. We will cover that in a future session in the not-too-distant future. The Rs. 200 crore mentioned, in the first slide and the 17% that Satya mentioned were numbers pertaining to the last financial year. This year's numbers could be better than that. And as soon as it is legally, we can share them, we will definitely do so. I hope I've answered all the questions on DEX that came through regarding each of these.

Satya Narayanan: Arjun, I think GP is getting, dropped off. So, let's cover the EdTech business while he is here.

Arjun Wadhwa: Sure. And then I'll come back to questions on UTSAV. Yeah. So, GP, if you could, there were a few questions on the EdTech business, specifically asking about the muted growth, and what are our plans to mitigate this going forward, and, how do we how we plan to compete with the competition in this space and regain market share.

Gautam Puri: Arjun, first of all, my apologies. I was getting disconnected. So I missed a couple of things, but I hope the question which you have asked will I hope my answer will cover all the issues which you have raised. Okay. First of all, when you look at Test Prep as an industry, there is a definitely a pressure on the pricing, and this was visible for the last couple of quarters, if not more, that the challenge was in the high value products, not in the low value products.

In fact, a large number of students were shifting from high value to low value. And I say shifting, obviously, it's an assumption. And this is based on the fact that the number of students coming for the high value products was reducing. A second, the macro trend which was clearly visible, in the last, four quarters, I would say at least, is that the large number of students are shifting towards doing the preparation on their own through YouTube, free material, and books, etc. And that is to in a small way also visible from the fact that the sales of our test-prep books to GKP has also increased significantly.

Now given that, situation, the reality is that high value products will be under pressure, and I don't see that pressure reducing in the next couple of quarter at least. It could be a little more than that also. The silver lining there is that the low value products or the test series kind of product or the testing products while the student sees an issue, whereas from things he or she can prepare on his own. But when it comes to testing, they have to come to somewhat like a career launcher. And that is where we have seen significant growth coming in.

Products like Test Series are going upwards of 20%. The negative parts is, these are low value products, but the margins are reasonably high. And if we can grow this segment significantly, it will, in the longer term, we it will be helpful for us to increase the numbers in the high value products also. Because, typically, what happens is many students start by saying that we will prepare on our own. And then after one year when they are unsuccessful, they realize that maybe we need to join somewhere else, and that is when they will look at those players first whoever have a good testing product.

Okay. So that is the situation there. When it so as far as, MBA is concerned and, even law, I would say, the top end of the market will be under pressure, and the lower end of the market is where we'll have to look at volume gains and market share gains. To mitigate this, the other thing that we are doing is we are broad basing ourselves as far as the UG is concerned. There's not too much you can do with respect to MBA, because that's a kind of a standalone market.

But when you look at the UG, the parent and the child want to look at multiple options. So what we had was only law or only BBA etc. We are now adding a few more segments to them, like hotel management, mass communication, journalism, etc, and broad based in the BBA product. Because all these exams are similar in nature. Yeah, they have minor differences, but they're similar in nature. And all of them are basically testing the aptitude of the student in a specific domain. And, practically, all of them are basic math and English. So it fits in very well with the BBA products. So we are trying to broad base it and go deeper into that market, and, and that is what we'll be focusing on, going forward, at the UG level. However, we need to remember again, this is something which will take two to four quarters.

Crash course is right next to it, and the real impact of this, will be visible only in the next season. Finally, we are launching a couple of new products. CSAT we have already talked about. We are validating couple of other products, where we think we can make a dent. By and large, all the products that we are looking at are aptitude based. We are not looking at knowledge based products at this point of time, but it is aptitude based products is what we are looking at in terms of, adding new products. Yes, Arjun. Back to you.

Arjun Wadhwa: Thanks, GP. I think that pretty much, would cover most questions that would pertain to this segment. If there's anything else later on, I'll come back to you specifically. Satya, there are a host of questions on the UTSAV business, including if you could, kindly just explain how the business model works and a little bit on the unit economics and the potential margins for that business.

Satya Narayanan : Okay. Arjun, do you want to now remove the slide or do we need the slide?

Arjun Wadhwa: No. I don't think we need the slide. I’ll remove that.

Satya Narayanan : So, Arjun, we did put out a video or an information summary on the Kestone UTSAV. A few weeks ago about the size of the market what we cover in the analyst call last time?

Arjun Wadhwa: Yes. We did. Yeah. We spoke about the market potential and where we hope to be in a few years.

Satya Narayanan : Right. So in the interest of time, whoever has asked this question, I would request you to kindly access that video. We've taken about ten, fifteen minutes and four, five slides to explain. But just to highlight a couple of, important numbers, in the wedding space, which is estimated between, a large number, the relevant number for us

in for the first at least couple of years is that there are 50,000 luxury weddings that happen in India, and the definition of luxury wedding is a spend of over 1.25 crores. So, the thing that we are looking at is, can we build technology platforms? Can we leverage the strength that Kestone has, which does, a mammoth three events a day at an average and for top quality conscious corporates? So, the one inside out strength that we're letting play out is that a core team of three to five senior people who understand personalization, high quality execution, operations, etc, moved into Kestone Utsav, and we have brought a couple of senior leadership members to be leading the team. And saying that, can we aim to do 1% of the luxury weddings in three to four years' time, which means can we build capacity and ability to do 400 to 500 weddings annually in year three or year four?

That's very simply gives you the back of the envelope calculation of 400 weddings at about 1.5 crores kind of a spend. And we are assuming that the, in absence of having any, you know, empirical data, we are guided between, what is, high value events or conferences, EBITDA that we see in Kestone is what we are taking as the starting point, which is a 10 to 12% EBITDA is what we are thinking. But maybe it can get better if we do a few things that we are wanting to do. The most important thing in the go to market, actually, if you look at is to be able to, successfully bring brand play, technology play, and personalization play and emerge as a thought leader. Thought leading and from planning to end execution partner for a family, for a wedding, or since we are calling it broadly as a social events thing, the other thing that we intend to focus on in the first couple of years is, as you know, wedding is in India more of an October to March phenomenon.

And in order to manage the seasonality, the other thing that we intend to do is look at the large format campus festivals and campus events in the June to October season. You know, it could be for instance, as you know, large format college festivals, for example, or alumni reunions, the silver jubilee, the golden jubilee reunions, or the mood indigo, or oasis, or Mardi Gras. These are these are all these days are ten to fifteen to twenty crore, events. So we are thinking how do we add, season one, first of all, the season, these kind of, events, and season two would be, weddings and, and concerts and so on. So I'll pause there. Any more details of it? Happy to respond if you leave some bunch of FAQs and answer it in in greater detail. Sure.

Arjun Wadhwa: Thanks, Satya. Couple of questions that I'll quickly just take, and then we'll, try and wrap up today's session.

There's a question on the GST notice that we've received. Just a quick update on the same. This is a demand notice. We received a show cause notice on the same, in the last financial year in March. We had appealed that, and we had gone through the process of contesting it using our lawyers, Lakshmi Kumaran. We have now received a demand notice on the same. It pertains to a matter of composite supply. Books and coaching services should have the same, GST rate applicable. The same matter came up during the service tax regime, and, we won that matter at the supreme court level where the courts ruled in our favor using the same lawyers, and our lawyers remain confident at the same stand and the same stance will apply in this case as well and, that we have nothing to worry about in this specific case. But as a matter of, we have shared that information with these stock exchanges and obviously made that available to all investors as well.

There are also a lot of follow-up questions on the DEX business on, how we are funding the acquisition. As we had shared previously, we are using a mix of debt and equity. We will share more specific details on that when we do the, specific DEX session on, conclusion of the transaction. But what we can since there are a lot of questions at what gateway borrowing durations, all of that, I understand, you know, there's something you would like to know about, and we'll cover it in due course. We'll do a separate session on the same.

Just on an overall basis where we have borrowed funds from, The Piramal Group, which has led a consortium, and we have, negotiated good competitive rates from them. More details will follow in the session we hold, in a couple of weeks' time. If there are no more questions, we will pause here. Right. Okay.

Thank you, all very much, for attending today's call. We look forward to interacting with you over the coming of course, seeing you come to the end of this season, when we wrap up, FY25. Thank you, Satya. Thank you, Gautam, for joining in today, and have a good day, everyone.

Gautam Puri: Thank you, and goodbye.

Satya Narayanan: Thank you. Thank you, everybody. Thank you, Arjun.

For more information, regarding CL Educate you can visit our corporate website:

Annual Report | Financial Statements | Quarterly Results | Telegram Channel

For further information, please contact: Amit Kanabar

Sr. Manager – Finance & Strategy CL Educate Limited Tel: +91 88009 76683 Email: amit.kanabar@careerlauncher.com