Dc Infotech and Communication Limited — Call Transcript 2023

May 15, 2023

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Date: 15 May, 2023

To,

To, To, Compliance Department. Compliance Department. National Stock Exchange of India Ltd. BSE Limited, Exchange Plaza,Plot no. C/1, G Block, P.J. Towers, Dalal Street, Fort, Bandra-Kurla Complex Mumbai – 400 001. Bandra (E), Mumbai - 400 051.

Symbol: DCI / 543636

ISIN : INE0A1101019

Subject: Transcript for Audio Recording of Earnings Conference Call of DC Infotech & Communications Limited – Q4 & FY23 Financial Results

Dear Sir/ Madam,

Pursuant to the provisions of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015, please find transcript for Audio Recording of Earnings Conference Call of DC Infotech & Communications Limited held on 10[th ] May 2023 at 11:00 am to discuss the Company’s business and financial performance for Q4 & FY23.

Kindly take the same on record.

Thanking you,

Yours faithfully,

For DC Infotech & Communication Limited

Chetankumar Hasmukhlal Timbadia Digitally signed by Chetankumar Hasmukhlal Timbadia DN: c=IN, o=Personal, 2.5.4.20=8cb3488e4459b809a2d0b04f214b1ab20fd008b3935ab579381a65354772ffcc, postalCode=400057, st=Maharashtra, serialNumber=58b00f9601167d03e912530e1ae65c80fc47528b6483e342960b0f14bf3dee8a, cn=Chetankumar Hasmukhlal Timbadia Date: 2023.05.15 11:59:54 +05'30'

Mr. Chetankumar Timbadia Managing Director DIN No: 06731478

DC Infotech & Communication Limited

Registered Offi: Unit No.2, Aristocrate, Lajya Compound, Mogra Road, Andheri (East),Mumbai - 400069, Maharashtra, India

Telephone No. 022 28329000(Hunting), Email: info@dcinfotech.com website : www.dcinfotech.com CIN :U74999MH2019PLC319622

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“DC Infotech and Communication Limited

Q4 FY '23 Earnings Conference Call”

May 10, 2023

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– MANAGEMENT: MR. CHETANKUMAR TIMBADIA MANAGING

– DIRECTOR DC INFOTECH AND COMMUNICATION LIMITED – – MR. DEVENDRA SAYANI WHOLE-TIME DIRECTOR DC INFOTECH AND COMMUNICATION LIMITED – – MR. PIYUSH SHAH CHIEF FINANCIAL OFFICER DC INFOTECH AND COMMUNICATION LIMITED

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DC Infotech and Communication Limited May 10, 2023

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Moderator:

Chetankumar Timbadia:

Ladies and gentlemen, good day and welcome to DC Infotech and Communication Limited Q4 and FY23 Earnings Conference Call. As a reminder, all participant lines will be in the listenonly mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Chetankumar Timbadia from DC Infotech and Communication Limited. Thank you and over to you, sir.

Thank you, Michelle. Good morning, everyone. I would like to wish you all a very warm welcome to DC Infotech and Communication Limited Earnings Conference Call for the fourth quarter and for the full year ended 31st March 2023. I would like to begin by expressing my gratitude to you all for taking the time to join us today. With me today on the call is Mr. Devendra Sayani, Whole-Time Director, and Mr. Piyush Shah, CFO, and also the ad factors, our investor relations team. Since this is our maiden earnings conference call, I would like to share some brief insights and recent developments about our company.

Before we get into the business and the financial performance for the year, established in 1998, DC Infotech has been specializing and providing innovative network, unified communication, and security products and solutions by utilizing the latest technology available. Over the years, we have been able to establish as a leading company in sales and support of networking, unified communication, security solution, and services. Our core competencies are in understanding existing network and its future needs. We excel at designing, deploying, and supporting effective functional networks with exhaustive range of POC appliances and security implementations with all major installations pan India.

As you all are aware, the IT industry has not only been survived, but actually grown in this week of recent pandemic-related disruptions. The crisis accelerated digital transformation and profoundly transformed the labour norms, propelling numerous firms towards the future. As we continue to navigate in the ever-evolving landscape of the IT sector, I am pleased to report that our company has made significant strides over the past last year. The paradigm shift makes unified communications and network solutions increasingly very critical, especially at the enterprise level. As more business activities move online, data breaches and network attacks are more common, prompting the need for a strong digital security.

This is where the DC Info steps in. We provide full value-added offering to our clients by utilizing our core strength in the digital transformation and end-to-end solutions. In terms of networking, unified communications, and security solutions, we are very happy to announce that we have opened a new branch in Surat, Gujarat. This branch offers a full range of products and to add, we are constantly looking to adding new products and brands to our product portfolio. Some of our latest client additions include Maruti Suzuki Gujarat, Blue Star, and Tata Play.

Moreover, on the brand side, we are tied up with California-based Array Networks. Array Networks provides an extensive selection of application delivery and security solutions, which we will be providing throughout India. We have received orders for our value-added security product line, Netscout, from three new prestigious clients, Kotak Mahindra Bank, Tata Sales

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Services Limited, and Bharat Petroleum Corporation Limited. Typically, most of our security orders are for three to five years' duration.

We have also entered into a distribution agreement with Versa Network Inc. We have won their mandate for India, as well as SAARC region. We have a history of working with a majority of OEMs. Many of them have been our partners for more than a decade. We continuously strive to strengthen our order book and expand our clientele. Our long-standing partnership, strengthen our position as a go-to partner for unified communication on network solutions. Additionally, we have received awards from our partners during the year for our contribution to their business, including D-Link, Samsung. Looking ahead, we are eager to explore fresh possibilities and keep pushing the limits of innovation.

I would like to express my gratitude to our clients and shareholders for continued trust and support. With your help, we will continue to lead the way in this information technology industry by helping our customers in their secured digital transformation journey and bring new cuttingedge products to the market. Now turning to our financial performance, fourth quarter Q4 FY23. We have reported INR96.17 crores of revenues during Q4 of FY23, which is a 26.19% year-onyear rise. Growth is driven by strong sales of Samsung signage, Netgear networks, and security software and services. Our EBITDA for the quarter stands at INR3.78 crores, increasing 76.01% year-on-year.

Change mix of the products and brands coupled with decrease in other expenses, EBITDA margin stood at 3.93%, an improvement of 111 bps compared to previous years. Our net profit for the current year is at INR2.15 crores, sorry, the current quarter is at INR2.15 crores and compared to INR1.23 crores in the last quarter of FY22. Net margin stood at 2.23%, up by 62 bps point. EPS for this quarter is 1.73. Now we move to full year FY23.

We have reported INR359.63 crores revenues in FY23, a 54.67% year-on-year rise due to strong demand in products like Samsung signage, Netgear networks, and software and security services. EBITDA for the full year is INR12.72 crores, an increase of 73.63% year-on-year. Our net profit during this full year is INR7.08 crores, as profit against INR4.00 crores in FY22. Net profit margin stood at 1.97%, EPS for this period is rupees 5.90. That's all from my side, now we can take questions.

Moderator:

Nikhil Arora:

Management:

Nikhil Arora:

Thank you very much, sir. We will now begin the question-and-answer session. The first question is from the line of Nikhil Arora, an individual investor. Please proceed, sir.

Congratulations, sir, on the good set of numbers. My first question is, the employee expenses during this quarter has been stable, so have you taken any steps pertaining to the workforce? And my second question is pertaining to the balance sheet. The long-term borrowings have decreased, but the short-term borrowings have increased this year as compared to the last year. So for what purpose have you taken the new loan? If you can give some guidance.

Can you just repeat the first question for my…

Yes, the employee expenses during the quarter have been stable. So have you taken any steps in pertaining to the workforce?

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Management:

No, as we are trying to get more efficiency in terms of manpower. Whatever we had in the starting of the year and the middle of the year, we are able to get the maximum out of the existing manpower. And as far as the second question, long-term and short-term borrowing. Long-term has decreased because mainly of the depreciation portion of the long-term borrowings. And short-term is for cash flow needed for the more business. I think our Piyush, our CFO can be more in detail about it.

Piyush Shah: Yes, long-term borrowings is a term loan. So once we are repaying the principal amounts, it is going to decline. And short-term borrowing is used for working capital only. Because the business has expanded, so the capital requirement has gone up.

Nikhil Arora:

Okay, sir. Thank you so much for this answer. That's all from my side.

Moderator: Thank you. The next question is from the line of Rajesh Aynor from ITI Limited. Please go ahead.

Rajesh Aynor: Yes, so my question is about just more from trying to understand the business around the margin and the overall margin profile that can be. Essentially, if I look at the product mix, I think almost 70% or 82% is product and 18% is services. And our margins are less than 5% operating margin. So what is the nature of this business? Because typically, these low margins are more for trading, etcetera, kind of outfit, or where there is a very high competition and who are more into sort of very low entry barrier kind of business. And let's say when we scale up, is there a scope for margins to improve or are these the normalized margins in the business? Or is that because we are at a smaller scale, so these are the margins, and we can actually improve to a significantly different level when we scale up?

Management:

Okay. To answer your question, I would like to just brief you about what we do and where we have come from. And I will help you to understand what question you have. We started our journey as a networking production and distribution company. And over a period of time, we have been doing that. But in the last four or five years, we added some products which are solution and services to that. So basically, the two things, networking has still been our core business, networking solution and products, which is still the 70%. What we have added in the last five years, mainly, is on the two fronts.

One is in unified communication where we have digital signage and its connectivity, mainly for boardroom solutions or outdoor solutions. So that's one product line where we are seeing a major growth also. And the second and the most primary, where the growth has been driven is security solutions. Security solutions are mainly high-class enterprise class solution, which goes to large enterprises, mainly NIFTY-50 kind of organizations would like to forward. In terms of the margins, what it was, the normal distribution business, what we have is comparatively little competitive as this margin.

But going forward, what we are seeing a rise is coming from the security and UC patch, and where the margins are nearly in double digits. And going forward as our product mix has more of that component. As of now, we are nearly 75-25 or 70-30 in that. But as that product mix improves, we are surely to see much better margins than what we are currently. And there is a

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lot of headroom where it can be improved in the coming year. As a company also, we are much focused in that direction to enhance our skill-sets in terms of market offerings and see what more product or more solutions.

So, as a company, we are focused on solutions rather than product, which we have been traditionally doing. And I am sure that going forward, this will help us to not only in the top line, but the bottom line also will grow in a healthy fashion.

Rajesh Aynor:

Sir, you mentioned about your nature of orders, which are 3-5 years typically. So, how large is that canvass, which is now open to us, where we can actually go ahead and place the orders? Do we have any specific order book? How is it growing and how much is our time, if you can specify that?

Devendra Sayani:

Okay. In our network, sorry, security and services product line, normally a customer would give an order to supply, maintain and support it for minimum three or maybe five years period of time. So, this is a very high-end skilled product, where every second vendor cannot be supporting it. So, all our orders come with an order of three or five years, depending on how the customer is there. So, they are all security software and solutions. Generally, the default period agreement with the customer is for three or five.

And the second portion of the question, order book, Yes, order book currently we have approximately INR10 crores plus order book, but on the flip side, there are a lot of POCs and demos, which are in a much-advanced stage. And we should be seeing a healthy pipeline in this H1 of this year, in this space.

Rajesh Aynor:

Okay. Excellent. Thanks a lot sir, that’s it from my side.

Moderator:

Thank you. We have the next question from the line of Harsh Sharma, an Individual Investor. Please go ahead.

Harsh Sharma: Hi, sir. Good afternoon. So, what I wanted to ask is, what is the capex plan for the company in the next one, two years?

Devendra Sayani: Piyush, would you like to answer that?

Piyush Shah: Yes. Actually, we are looking for short-term capital, short-term working capital. But in fixed asset side, we are not expanding much. Okay. So, we are only, means for the business growth only, we are looking for the working capital. So, hindsight enough.

Harsh Sharma:

Sir, so, like, who do we consider as our top three competitors in India currently?

Devendra Sayani:

That one, Chetan will answer that.

Chetankumar Timbadia: Okay. Yes. See, currently, what we are doing as a product mix or the solution mix, there is no, I would call it the Apple-to-Apple competitors, because the mix what we have is not very reflected by many of them. Yes. But you can say we are basically into mainly three domains. One is the networking domain. Second is the unified communication domain. And third is the

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securities software domain. So, in the, you would like to understand from the listed space or non-listed examples also?

Harsh Sharma:

No, sir. So, basically, like, how we know that it's in the networking space, it's a competitive market. So, how are we different from our competitors?

Chetankumar Timbadia: How we differentiate from our competitors? Basically, we have been networking solution. So, we have been here in this space for nearly now two decades. So, the expertise and the knowledge, not in terms of only the management, but the team we have has been so deep. What we are able to understand and churn out as a solution, that skill set and that knowledge will not be available with maybe a new entrant in this. So, the time and the advantage we have spent has given us a lot of age. While we continuously train our team for the future technologies also.

So, competitively, there is a second side. One is the similar instance. And second side, we are spread across the nation. We have people there. So, the market feed is there. We are connected to the ground, which can help us to see what the changes are, what the trends are. And we are able to deliver to every nook and corner of India. So, this knowledge plus reach gives that competitive edge towards the rest of the participants in this arena.

Harsh Sharma:

Good. Thanks, sir. One more question, sir. Basically, what is our current market size of the industry that we are present in? Like, we can say domestically and globally.

Chetankumar Timbadia:

Okay. So, there are no exact numbers for the global patch, but I have what I have gathered from the domestically networking market is around INR20,000 crores market size for India as such we talk about annually. Networking as a space. There are a lot of diverse solutions available. So, that's the one thing. The unified communication space should be somewhere around INR8,000 crores to INR10,000 crores.

And the security market, which we do, we have recently started a couple of years back. And that is a very emerging market. It currently is in the space of INR4,000 to INR5,000 crores, but it is growing at a compounded space of maybe 30%-40% a year. So, in the times to come, this is going to become a very big portion of that. As the large enterprises, the startups, the billiondollar club organizations grow, the space will also grow at a much faster pace. So, if you put all of together as of today, what I see should be between INR40,000 to INR50,000 crores as of now, currently.

Harsh Sharma:

Fair enough. And if I may, one last question, please. Yes. So, which are the top three to five brands in terms of revenue and what is the revenue share split accordingly?

Chetankumar Timbadia: Okay. We have brands which are the major in our D-Link in networking space, Netgear in networking space, Samsung in unified communication space, and for the security solution, we have Netscout Arbor, which is the major chunk of our revenue. D-Link contributes approximately 22%. Netgear contributes approximately 24%. Samsung contributes around 26%. And Netscout Arbor contributes around 50%.

Harsh Sharma:

Understood. Thank you so much, sir. Thank you.

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Moderator:	The next question is from the line of Neha Jain, an Individual Investor. Please go ahead.
Neha Jain:	Good morning, sir, and congratulations on a good set of numbers. Thank you. So, we just heard
	about the different categories that we have in terms of networking, unified communications, and
	enterprise security. So, just wanted to understand what is the revenue breakup of these segments
	for FY ‘23?
Chetankumar Timbadia:	Okay. Revenue breakup for the networking in terms of rupee or in terms of percentage, would
	you like to know?
Neha Jain:	Yes, in terms of rupee.
Chetankumar Timbadia:	Okay. Networking patch comes approximately INR168 crores to INR170 crores. That's the
	range. Unified communication is approximately INR100 crores. And the security and software
	patch is approximately INR70 crores.
Neha Jain:	And what will be the EBITDA margins for these three segments?
Chetankumar Timbadia:	EBITDA margins will be – in the security patch will be around 12% to 13%. And for the unified
	communication will be around 6%. And for the networking patch will be around 4 to 5%.
Neha Jain:	Okay, sir. And have you done any major capex during this year, this financial year?
Chetankumar Timbadia:	No, nothing major. capex only for working capital only we are looking at, not for fixed assets.
Neha Jain:	Okay. So, sir, what will be our cost for that short-term working capital that we are incurring?
Chetankumar Timbadia:	Cost in terms of interest costs or what?
Neha Jain:	Yes, in terms of percentage.
Chetankumar Timbadia:	Interest is repo plus 3.12, repo plus 5%.
Neha Jain:	That comes up to how much percentage?
Chetankumar Timbadia:	Repo right now is around 11% or like that, it is there. And one channel finance is there. So, that
	is around 12%. So, that is not linked to repo.
Neha Jain:	Okay. Got it, sir. And, sir, so like are we, like what is the ROCE for individual segments if we
	bifurcate?
Chetankumar Timbadia:	Actually, there are some unallocated assets as well. So, because of that then we would not be
	able to bifurcate exactly in terms of ROCE.
Neha Jain:	So, we only calculate ROCE on a total company-wise, not segment-wise?
Chetankumar Timbadia:	No, no. Because capital employed changes within the year, that is why.

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Neha Jain:

Okay. And, sir, what is the like terms of breakup contribution in terms of software and hardware for FY ‘23?

Chetankumar Timbadia:	Product will be around 80% and software will be 18% or sub-18%, 18%-19%. That is 80%-81%.
Neha Jain:	Okay, sir. Just a few more questions related to finance. So, the operating costs have decreased
	by approximately more than 50% on a Y-o-Y basis during the quarter. So, have we taken any
	major steps to improve our efficiencies? We would just like to understand on that part?.
Chetankumar Timbadia:	Earlier in the year, because of the dollar fluctuation and the dollar going from 75 to 80 plus level,
	we, being an import-based company, we had incurred some forex losses. That was the major
	reason for our revenue. In the H2, we have taken steps to correct it and we have put an hedging
	policy in place. And we were able to stem any further loss and maybe recover a little bit of loss
	which we had got. That is why that cost has gone down.
Neha Jain:	Okay. And even for the entire year, the other income has increased by more than 190%. So, what
	are the components of the other income?
Chetankumar Timbadia:	That is because of interest.
Neha Jain:	Okay, because of interest. Okay, sir. Thank you so much, sir, and good luck for the future.
Chetankumar Timbadia:	Thank you, ma'am.
Moderator:	Thank you. The next question is from the line of John Matthew, an Individual Investor. Please
	go ahead.
John Matthew:	Hi, sir. Good morning.
Chetankumar Timbadia:	Good morning, John.
John Matthew:	What is our working capital cycle? I want to understand that.
Chetankumar Timbadia:	In the terms of number of days?
John Matthew:	Yes.
Chetankumar Timbadia:	Currently, we have a working capital cycle for us will be around 70 to 73 days as of now.
John Matthew:	And in terms of cash flow position of the company, are you taking any measures, if any, taken
	to improve the cash flow position in the company?
Chetankumar Timbadia:	Yes, we are trying to do that. See, the two things are, which we are working on, major for cash
	flow. We are trying to make more efficiency in terms of collection of data, what you would call
	it, seeing that the cycle becomes smaller. And two, on the stocking side, we are trying to see that
	what minimum or what correction we can have to bring the stock level below. So I think both of
	this multiplied together can give the desired effect as of now to bring the cash flow to more LDR
	levels.

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John Matthew:

Okay. And in talking about your business segments, could you and would you be able to provide the ROCE for individual segments?

Chetankumar Timbadia: I think Piyush has just shared. We don't have, we have a lot of unallocated expenses across the sector, so we are not able to. Yes, Piyush. Piyush Shah: Because the capital employed is interdependent as well. So that is why it is not possible for us, for individual segments. John Matthew: Okay. Last question from my end. On Netscout brand, as which we got it from Kotak, Tata and BPCL. So could you, would you be able to provide breakup? Like what is the order book breakup for Netscout brand? Chetankumar Timbadia: What we have executed or what order book we have in hand? John Matthew: What order book we, both numbers if you could provide, then that would be much more helpful? Chetankumar Timbadia: For the Netscout, what we did in the last year? That's what you are trying to ask me? John Matthew: Yes. And if there are any future orders in the pipeline as well. Chetankumar Timbadia: Okay. So we did approximately INR50 crores plus in the Netscout order space in the last year, out of the whole thing. And for the order book in hand, we have approximately, we have more than INR10 crores plus of order in hand, which are pending for execution. And there is a decent funnel size, which we are looking at to close. Basically, this product and the security solution have a long sales cycle. So what we work, we do now can yield orders maybe three months or six months down the line. There's a long POC, which the enterprise will do. And a lot of due diligence and security checks are done before an order is placed. So, but there are a lot of pieces which we are working on and that order should come through in this H1. So we are looking at something of maybe INR30 crores to INR40 crores in this H1 for the enterprise security patch. John Matthew: Okay. Thank you. Thank you for providing the insight. That is all from me. Management: Yes. Moderator: Thank you. We have the next question from the line of Pranayan Jain from Deal Wealth Securities. Please go ahead. Pranayan Jain: Thank you and congratulations team for a wonderful set of results. It's great to see that for a young company, this kind of accelerated growth is there and the way ahead is quite encouraging. So just wanted to understand a couple of things. Say over the next three years, what are we looking to scale to in terms of revenue and EBITDA margins based on the drivers and the new areas that we are working on? Management: So, okay. Thank you for your kind words. It has been encouraging. Yes. We have been really pushing hard and as you told as a young company and with the product mix we are seeing. Yes.

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One, we are sure that we will try to beat whatever the market growth is there. As far as if you would like to specify in terms of numbers, we are aspiring to be or we would like to be a INR1,000 crores company soon, maybe next couple of years. That's the vision we are trying to carry as a team.

Pranayan Jain: So when you say INR1,000 crores, you mean by FY ‘26?

Management: Yes, that would be my wish. Pranayan Jain: Okay. And the EBITDA margins which we have exited at 3.5%, what could that look like with this kind of growth?

Management: As I think, we are more focused on the unified communication and the security patchwork where the EBITDA or the gross margins are much higher than the traditional networking what we do. So as the product mix increases or skews toward that, we see a much better growth in the overall patch from the current ratios. As the ratios change, the EBITDA margins also set to go up much faster.

Pranayan Jain: So for a simplistic understanding, say by FY ‘26 end, could we expect double-digit EBITDA margins on a consolidated basis?

Management: That would be my wish. But yes, nearly high, very close to that would be, I think, achievable. But that is all our wish.

Pranayan Jain: Okay. And lastly, what are the other large logo additions that we are in talks with which could help us in this kind of growth and the new technologies, whether it is, for example, Jio is coming out with Air Wi-Fi and 5G, we are going to see a stronger rollout next year onwards. So on a realistic basis, over the next one year, what are we really excited about based on our discussions with existing clients to expand pocket share or the new logo additions that we are doing and whatever technologies that we have tested, they are now going to be taken up by clients.

Management:

So, very interesting question. And see, as far as what you mentioned about 5G, from where we see our management and understanding, still that 5G is very in the nascent stage. But maybe a year or two down the line, that 5G comes properly rolled out in every state. We'll see a lot of ecosystem building around it, a lot of products and a lot of solutions being built around that. And that will bring a lot of new opportunities. So until that thing is there, we can keep on talking. I have a lot of things to share.

But to keep that brief, there will be a lot of ecosystem built around 5G as a solution and that we'll be able to do that. And the other side of it, which I'm more excited about it, was that 5G or the current thing is built up. So maybe it's a little hazy what will come in, but security will come in in a big way. More-and-more data adoption, more-and-more connectivity, more-and-more remote devices connecting, and every connectivity brings a security threat. More people moving to cloud, more people mobile, everything. And that's the part which we would like to encash it more and focus more in terms of the times to come.

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Products will come in, but there it will be not much of a value-add in terms of knowledge, which we will be able to do. But our reach will help us to serve and distribute that across the nation. But the knowledge and the skill set what we have, which we would like to encash it or invest into the security patch of it. Am I able to answer what you are asking?

Pranayan Jain:

Management:

Pranayan Jain:

Management:

Pranayan Jain:

Yes, I understood that things are looking a little hazy on the medium-term front when it comes to numbers. And we are focusing on our current strengths near term. So if I speak near term for visibility, let's say this financial year FY ‘24, should we expect you to at least touch INR500 crores on the top line front, is that kind of growth achievable?

I think you are reading my heart. That's fine, that's the wish. But for the first sentence which you told, hazy. See, nobody anticipated COVID and the turn of events. So what COVID brought in, brought in a lot of big opportunity for us in terms of people started working remotely. And that brought in a security requirement and we grew on that rise. Now, again, as you say, future is hazy with all the global affairs going on, interest rate, India is still doing good, but there are fears of slowdown coming into the enterprise patch. If that comes in, we are serving the industry. So if industry slows down, I can't do much about it.

I understand. And our focus is going to be largely India or we are expanding our business in select markets overseas. If you could give us a picture of what our vision is outside India and how we are going about it.

So as of now, we are focused mainly of India, covering India is also a very big market. But yes, there are some overseas plan and discussion which are going on. Hopefully, maybe in a couple of quarters, we will be able to come back to all of you with the exact plans. Yes, that is on the radar. And there are talks and discussion with products and solution companies about their overseas presence. Because the strength and skill set what we can offer in terms of designing, installing and implementation. And obviously, India being so cost effective and skill set capital. A lot of brands are pushing us to take this same to other markets. And we are seriously considering that. But at the right time, we will move to the other markets. That is on the radar.

Okay. And this last question before I get in the queue again. There are these wonderful valueadded partnerships that we have with D-Link, Netgear, Samsung, NetScout and so on so forth. So what are the concrete business additions that we are going to have with them in the next 12 months to 18 months? Where discussions have already happened, technology is already tested. There is a demand already for this thing.

So one, what are the new large logo additions like these names that we are looking forward to in the next 12 months or so? And also some breakthrough or cutting-edge technologies, which is not going to just add value on paper, but also in our numbers, overall profitability. Just this last question.

Management:

Okay. So in terms of this brand, all brands are working on a lot of technologies which are future ready. But something which is immediately coming through is in the networking patch, as I told you, 5G ecosystem production will come in hopefully in the later part of the year. So that should be some products which will be on the networking patch. In the unified communication, the next

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big thing which is going to happen this year, again in the second half of the year, will be interactive. So with government giving a big push to interactive solution with Sarva Siksha, Abhiyan, and other lot of initiatives which government are taking for Anganwadis and the Kisan Manch and lot of things.

The interactive panel is going to be a hockey stick growth, I would call it. So there is something which we are very excited which H2 should be giving that solution and interactive panels. That will be one of the main growth drivers for H2. And the third in the networking security patch, the Netscout, Arbor, and Zscaler, what we do, they are working on technologies like OCI and DLP. DLP being Data Leak Prevention.

If I would simply like to explain it to you, if you are sending out a mail, what kind of attachment or what kind of data are you sending out? The organizations would like to restrict that, what they are writing, is there any sensitive data going in and out, etcetera. We can discuss the technology more. But there is two, three things that are coming up in the security patch in a big way. And hopefully, adaption to it will happen much faster than the rest.

And second, Adani will be bringing the cloud infrastructure into India. The cloud space or the data center space is going to become much more competitive. And for that, the adaption from the enterprise will also happen fast with Amazon and Jio and Google already in place. And Adani adding to the fire, cloud adaption should help. And once that helps, again, that connectivity and security both comes into picture a big way. So, these are the major trend lines which we feel that should be helping us in this year and maybe the years to come.

Pranayan Jain:

Management:

Thank you for helping us understand these building blocks. You added quite a lot of color to the picture. So, just to summarize, we feel that the second half of the year is going to be much stronger, not only year-on-year basis, but even otherwise in the growth trend of the company. So, is there any seasonality where first half is decent and second half really picks up pace, is it like that? And overall, how do we wish to share the growth and wealth with the shareholders? Do we have some plan on the dividend payout or on the other corporate actions? Just want to understand what the management philosophy is?

There is no seasonality. This is the infrastructure, we are basically building blocks like of any organization or a place. So, there is no seasonality, but seasonality in terms of kicks off, lot of decision makers are on holiday. Diwali, lot of decision makers are on holiday. So, there is a little delay or a gap in that period in terms of orders and execution. So, that only is the delay portion of it. Otherwise, the project goes on in space and our requirement is being the infrastructure portion of it. So, it goes on. There is a seasonality in terms of overall human vacation period.

And the second portion of that wealth sharing or dividend, yes, somewhere I will wish to. Currently, we are hungry for cash and want to grow. So, we have not been doing that and trying to employ every paisa to grow faster. But coming forward, yes, maybe this year or the years to come, we would like to share it with shareholders in the forms of dividend or maybe some other at the right time, whatever the board decides. We would like to share with shareholders.

Thank you and wishing you and team all the very best.

Pranayan Jain:

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Management:

Thank you very much.

Moderator:

Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Chetankumar Timbadia from DC Infotech and Communication Limited for closing comments. Over to you, sir.

Chetankumar Timbadia: Thank you, Mitchell. I would like to thank the entire team of DC Infotech and Communication Limited for their continuous effort, hard work and dedication which strengthens the company's resistance to various market cycles. Also, I appreciate all of you for participating in our medium conference call. Please do get in touch with our investor relation team, if you have any further questions. Thank you.

Moderator:

Thank you, sir. On behalf of DC Infotech and Communication Limited that concludes this conference, thank you for joining us and you may now disconnect your lines. Thank you.

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