All E Technologies Limited (NSE: ALLETEC) Q1 2026 Earnings Call dated Aug. 05, 2025
Corporate Participants:
Unidentified Speaker
Ajay Mian — Managing Director
Rajiv Tyagi — Co-Founder and Executive Director
Ritu Sood — Executive Director
Sandeep Jain — Chief Financial Officer
Analysts:
Unidentified Participant
Presentation:
Unidentified Participant
Ladies and gentlemen, I welcome you all to the Q1FY26 post earnings conference call of Ollie Technologies Limited. Today on the call from the management we have with us Dr. Ajay, Managing Director. Mr. Rajiv Tyagi, Executive Director. Ms. Ritu Sood, Executive Director. Mr. Sandeep Jain, Chief Financial Officer and Mr. Sandeep Salman, Head Cloud and Managed Services. As a disclaimer I would like to inform all of you that this call may contain forward looking statements which may involve risk and uncertainty. Also a reminder that this call is being recorded. I would now request the management to quickly run us through the presentation and the business and performance highlights for the quarter ended June 2025.
The growth plan and vision for the coming year. Post which we will open the floor for Q entry. Over to you sir.
Ajay Mian — Managing Director
Thank you very much, Vinay. Good afternoon everyone who has taken time to join us today. We will keep our presentation short which gives us more time for conversation. Let me just share…
operator
Sir, your presentation screen is not visible.
Ajay Mian — Managing Director
Yeah, I know. I am just going to. Is it visible now?
operator
Yes.
Ajay Mian — Managing Director
Okay. All right. Thank you. So as usual we will first go over the numbers. We’ll talk about the story behind basically what steady and the indexers are for anyone to look at the details. Some of you might have already seen this presentation because it was uploaded several hours back. If you look at the numbers in Q1 we had a total revenue of 34.07 crores. The income from operations stood at 3 point, you know, 36.3. EBITDA was 8.79 crores. Net profit at 6.32 crores. Net profit margin 17.4%. This meant a Q on Q reduction in top line of 5.2%.
Though on the Y on Y basis it was 3.8%. Our repeat + recurring grew up this time to become 96.4% and we added 11 customers. So that’s the summary but let’s go into a little bit of detail. So on a Y on Y basis the income grew by 3.8%. EBIT grew by 4.7%. EBITDA margin was 24.2% which meant the growth of 4.4%. The net profit growth was 2.3% and the reported net profit margin was 17.4. You know these are the charts which show Q on Q Y on Y numbers for ebitda, the, the revenue EBITDA and the, the pat.
So I think the numbers are. Have been there since yesterday. And if you look at these numbers, it would appear that the momentum seems to have moderated this quarter. But in reality, perhaps the numbers do not reflect the underlying health of the business. Even though the broader market is clouded with uncertainties, Our position as a specialized Microsoft business solutions and AI partner brings us unique perspectives and opportunities. This quarter saw us seed AI solutions with several customers. We had two significant deal wins against SAP and a sizable deal win in Saudi Arabia. As you might have tracked, Microsoft’s momentum has significantly strengthened over this period of time and particularly in the areas of cloud, AI and business applications.
It is leading the competition. So what all of this means for us is that the fundamentals of the business stay strong. Businesses worldwide are facing a paradigm shift yet again and this paradigm shift is now triggered by AI Olli. Tech helps customers navigate through the maze and modernize their businesses. As we discussed, the Microsoft stack adoption is strengthening and leading competition. The comprehensiveness of the solution offerings that we have, it continues to give us an edge. And our business model of being direct to end customers and of having project based engagements brings us strength because we do not have dependency on a small number of large companies who might be looking to just outsource some work over to us.
So there’s direct customer engagement, direct customer relationships and all that is going on in the world of technology and business are. They are the fundamental strengths that we are leveraging and will continue to leverage over the next several years. If you look at this quarter, the primary revenue drivers have been that our UAE operation has gotten operationalized now. So we have a person running that operation already. A few leads that we are working on. We strengthened our Africa business with a new sales leader, you know, who has, who has been showing good spark. We just spoke of a sizable tender win that we had in Saudi Arabia for a large global services organization.
This was a tough fought win. It took us almost like a year to get this. The traction in America continues to strengthen. Our own investments are underway in AI skilling and IP development. We will talk a little bit more about this and we are also significantly increasing our marketing investments. There is good amount of investment and effort that is going in AI transformation within the organization. This includes strengthening AI capabilities through internal skilling. We have been investing in building several AI agents and I will, you know, try to give you a view of one such example that we have been under POC and we have several agents under POC with customers to drive automation, enhance decision making and deliver measurable business outcomes.
Modernization of industry solutions is asking for investments and which we are making. We are embedding AI agents into our industry solutions, particularly the EPC 365, Travel 365 and the EdTech 365. We are working on AI adoption for our internal development and testing activities, which is enabling us to improve our cost. We may have cost increasing on account of some lateral hiring, some salary increases, but we are trying to optimize that by including AI efficiencies into our processes. Maybe I give you a little view to one of the agents that we currently have under poc. Raj, can I request you to please run the video?
operator
Sir, I will.
Ajay Mian — Managing Director
Should I stop sharing?
operator
Yes sir.
Ajay Mian — Managing Director
Thank you Raj. I know the video was probably not that clearly visible to some because of the nuances of screen sharing, but the link is available in the presentation deck that has been uploaded. Anyone can click it if you have interest in watching what was going on. So let me continue with the few remaining slides of the presentation. So by the way, this video that you saw, this is an AI agent that we created from the tool set and technology stack from Microsoft. In a similar manner we have created several other agents which are either specific to an activity or specific to an industry and these are currently under POC with a set of customers.
The face of ERPs, the way the solutions are built and the way the solutions will get consumed, also the way they will get implemented will change quickly over the next one to three years and we at Olli Tech are fully geared up for it. This not only requires people to understand the new product lines and the new technology and the new stack, it also requires to understand the new way of implementing these solutions. So we are taking steps to stay in a leadership position there and we will see these things happening definitely by the end of this year.
If you look at the geographic spread our it’s not shared, okay? Right. If you look at the geographic spread from a services, this point of view, Americas accounted for 58.9% of the revenue. India was at 24.4, Europe at 5%, Africa at 4.8, APAC excluding India was 3.6 and Middle east was 3.3. And as we have just discussed, we have taken several steps to increase these numbers and we will see that effect coming in in a couple of quarters. As we mentioned, we added 11 customers. Four of these were domestic and seven were international. The revenue from our top five in this quarter was 22% and top 10 was 32.3%.
This is the split up of revenue from different industries. Some industries have been kind of broken up in the sense that food and beverages can be a part of manufacturing as well as part of distribution. But we have called it out separately. So professional services remains the highest followed by manufacturing. And retail as you see is taking a significant percentage now. Our growth drivers stay consistently the same, except that besides our comprehensiveness of our offerings, the Microsoft momentum is now largely led by AI. That’s the reason that I have written here now. AI and the Microsoft momentum.
AI momentum is growing and Microsoft is leading that race. The international focus stays. Our IP led solutions continue to find us more opportunities and our focus on inorganic growth stays. Very brief introduction. For anyone who might be joining this call for the first time there’s a brief of Olli Tech. I won’t spend time on this but most of the data about us is here. What we do and how long we have been doing it, how many customers we have is all filled in here. Our board of directors remains the same, our lead management stays the same.
These are the standard annexures and something about our csr. So if you’re okay, I can stop sharing?
operator
Yes sir.
Questions and Answers:
operator
Those who request to ask a question may raise their hand or put your request in the chat box and we’ll answer the question for you. I also request all participants to limit your questions to two before joining the queue. Again we’ll take the first question from Rohan Mehta. Rohan, you can unmute and ask.
Unidentified Participant
Hello sir, am I audible?
Ajay Mian
Yes Rohan, very much.
Unidentified Participant
Perfect, perfect. Thank you so much for the opportunity. Sir, couple of questions. So firstly, you know, so the revenue has remained flat at about 34, 35 crores for the past four quarters. So I wanted to understand firstly what is driving this stagnation and also is the deal execution sort of slowing down due to macro or client specific uncertainty? And you know, while services as we see are currently excluded from Trump tariffs for now, has this also induced business transformation spends to be put on hold? So also if you could share your outlook on the US market over the Next few quarters, given that there is revenue share has come down sharply In Q1, that would be great.
Ajay Mian
Sure. You see, I think us, nobody can predict next few quarters given the current state that we have in us I think people can’t even correctly predict the next week, you know, what will happen to various tariffs and what will happen to the international relations and so on. So while the IT and services in particular are not impacted by tariff, but the businesses overall are, so many businesses are cautious in terms of committing to investments which are long term. We have had several situations where companies have been uncertain about. So for example, if there’s a manufacturing unit somewhere in the US which is importing some stuff from China or India or any other country for their manufacturing, they don’t really know what will be the landed cost.
And some of these things are stabilizing, becoming more clear, you know, favorable or otherwise. But they are becoming more clear. But the last couple of quarters, this has been one impact. There are other factors as well. This may not be the only factor. You know, there have been overall macroeconomic situations, but if you go under that, we actually don’t see any, I would say, slowing down of demand. Some of the numbers that we see, you know, all said and done, these are like, you know, 1, 2 crores here or there kind of make the numbers look different from a percentage point of view.
We have also been a little bit careful. I must admit that we don’t want to load a lot of manpower on the organization because we are seeing that AI is changing the way that we work. So we may be a little bit cautious about it. But fundamentally, I think people are trying to adjust and they are trying to understand how not just the global political and war situations are impacting businesses, but also how AI is impacting businesses. So this is a point where many factors are at play. Very difficult to kind of forecast what will actually happen when.
But one thing is for sure, there is no reduction in demand. It’s just that people are more cautious and maybe taking a little bit more time before they decide what they need to do next.
Unidentified Participant
Okay.
Ajay Mian
We had, by the way, if you look at the last quarter, we had lesser number of customer ads and we had called it out in the last quarter, you know, this quarter became healthier and some of this will reflect in the coming, you know, 1, 2 quarter, 3 quarters. But that dip that we saw in customer ads, you know, is becoming better.
Unidentified Participant
Okay, okay. And secondly, when it comes to the last quarter’s EBITDA margins, were they temporarily higher due to a lower Software license cost. And if so, where do you feel is a more sustainable margin profile you see going forward? And in terms of your FY26 guidance, is there any revision to the 20% revenue growth for FY26 that you would like to make?
Ajay Mian
Sure. So see, quarter four actually comes in with a set of adjustments over the year. You may have provisioned for some expenses and when the year ends, some of those expenses might actually not have been incurred. And so that is one factor. The other factor which comes in quarter four also is the forex rate adjustments that happen. And all of these adjustments are put in the quarter four. There might be some variations and some of it could be deal on deal basis where license margins could have been different. But fundamentally there isn’t anything I would say which is, you know, you know, I said the same thing in the last quarter, although we had a substantially higher profit margin.
But I said that the most extraordinary thing is that everything has stayed ordinary and we still have had, you know, larger profit margins. This is just the nature of the business and the nature of how some of these expenses are accounted for. Well, the one little thing I would say, and I don’t know how much really to how much weight is appropriate to put in that we also had a little expense, we had our 25th foundation day this year and so we had our annual celebration that had a little bit expense. But we are not outrageous on making any such expenses fundamentally.
Unidentified Participant
Sure, sure, sir, thank you so much. I’ll get back in the queue for more questions.
Ajay Mian
Thank you.
operator
Thank you. We’ll take the next question from Raghav Singh. Raghav, you can unmute and ask.
Unidentified Participant
Hi sir, My question is related with the margin which has come down as compared to March, March quarter. So that’s my first question. Then I have one more question.
Ajay Mian
I think the first question I just answered that the March quarter, which is the quarter four of a year, has invariably some adjustments going in. You know, very, very often there are expenses that you provision for as you move quarter to quarter and sometimes if all of those expenses are not made, then they get adjusted and then we have this forex adjustment coming in, typically in quarter four.
So these two are the primary things which would, you know, give a positive flip to margins in quarter four. Otherwise, if you compare, you know, Q1 to Q1, the margins are even from a percentage point of view, I mean from an absolute number point of view, it’s, it’s higher. But from an, from a percentage point of view, it’s, it’s almost the Same.
Unidentified Participant
Okay, sir. Thank you. My second question is when we say. Our client base as professional services manufacturing. So what is this professional services? Is it the clients, they, they. Their nature of services in this professional services?
Ajay Mian
Yes, yes, yes.
Unidentified Participant
So is it like big IT organizations. Or is it like some consulting organizations. Maybe, I don’t know, MCNZ or someone.
Ajay Mian
Rajiv, you want to answer that?
Rajiv Tyagi
So it will be a mix plugger. There will be consulting organizations, there will be, you know, let’s say legal services companies. There will be companies in the marketing advertisement space. So there’s a area of, you know, services that people are offering. And if you see even at a level, certain companies in the digital space, they may be actually providing a service where they may be charging, you know, for that particular service and not a product.
Ajay Mian
So by the way, there could also be an IT organization where we are not working for that IT organization’s customer, but we are working for that IT organization to help them put in place their internal systems.
Unidentified Participant
Okay, I got it. Thank you. That’s all from my side.
Unidentified Participant
Thank you.
operator
Thank you. We’ll take the next question from Vikas Madania.
Unidentified Participant
Good afternoon, sir.
Ajay Mian
Good afternoon Vikas.
Unidentified Participant
Sir your presentation says that AI is bringing big changes. What are the main risk you face. When you start focusing more on AI. Both inside your company and when delivering work to clients?
Ajay Mian
See, the biggest change will be that we will need to recognize what the change is going to be. All the businesses who don’t recognize what the change is going to be will be at risk. Now if you see from our point of view, from our solution offerings point of view, if we fail to deliver the advantages of AI to our customers, they will move to somebody else. And if they don’t, they will start losing on competition. So if we don’t gear up and if we don’t become an AI first company, which we are working towards, and if our solutions are not AI first, then we will start losing these opportunities.
Because if we don’t do it for our customers, our customers will start losing their market share and their opportunities. So these are the primary risks. I wouldn’t say that work is any in any sense coming down, but I would say it is changing. We need to recognize what that change is and we need to leverage what that changes.
Unidentified Participant
Okay, sir, second question is, sir, can. You provide an update on Sizable Tenderness in Saudi Arabia and how it will impact our geographic revenue mix in the coming quarters?
Ajay Mian
Well, I wouldn’t say. I mean we say sizable. It was about half a million dollar. Okay, so it’s not multi million dollar. Last quarter I had reported having won a three million dollar tender in Canada. But that was over a period of three years. This one is about half a million dollar. You know, we should be completing this project engagement within three to four quarters. These are all milestone based payments. So not all the revenue may come in or get reorganized in this year. But the key thing is that this is a fairly unique project where we had to compete with the bigwigs in the industry.
And this project has the potential of becoming a sample project for several other units of this large global organization. And we expect to see more of their global entities going in for similar solutions after this one is done. And by the way, this half a million dollar is services.
Unidentified Participant
Okay, thank you. Thank you so much sir.
Ajay Mian
Thank you.
operator
The next question from Earth Patel and Newton asked. We’ll take the next question from Shashanki. Shashank, you can unmute and ask your question.
Unidentified Participant
Hello sir. So my question is that when are you expecting new growth drivers like AI agent etc to reflect any of growth number? Also for increase in margin profile, are you planning to taper down India business and focus more on Europe and usa?
Ajay Mian
Well, we are not tapering down anything, okay. That we have, you know, opportunities in the Americas market which we are working to leverage. It’s also a market that gives us better margins on services. But it’s not that we are tapering down on this. So that’s your answer to your question number one. Your other question was about when do we see these agents starting to contribute or these AI solutions starting to contribute to our revenue. So this answer to this question is in two parts. The first part is that this is a change which is even necessary for organizations like us to survive.
If we don’t do this, we will die because somebody else will. And the second part of it is, which means that if you look at our revenue components, some of those components will start tilting towards building up of these agents and leveraging and enabling companies to leverage their data which you feed into training these agents. Which means that you might have reduction in some of the typical, let me say customization or software development type of activities. Some of that revenue may get shifted. But the point is that all of these things together are creating more opportunities.
And the reason that we are investing significantly on this is that in a couple of quarters we will become, you know, a distinct leader in this space for our segment and for, for our segment of solution providers. So it is not only, I would say, and it’s not only an advantage, it is also a necessity.
Unidentified Participant
So my Second question is that since we have a substantial cash as well in our balance sheet, are we planning to, you know, buy any kind of a startup in AI, you know, to build our portfolio in AI, which could help us in making our broad driver.
Ajay Mian
So, so, so some of those things are work in progress. And when the timing is right and when something more concrete happens, we’ll be happy to update you guys. Okay. Okay.
Unidentified Participant
Thank you sir.
Ajay Mian
Thank you.
operator
Thank you. We’ll take the next question from Rajesh. But Rajesh, you can unmute or not?
Unidentified Participant
Good afternoon. Two questions. The first one is what’s your current order book and what’s your book to bill ratio? I couldn’t find that in any of your presentations. I don’t know if you just wanted to know order book and book to bill ratio.
Ajay Mian
So we really do not track the order book in the same way in which, let’s say a pure SaaS product company would do or in the way a BPO company would do. Because the nature of our business is not, we don’t sign typically we don’t sign multi year contracts. So if you go to a BPO KPO, they would probably have contract which are 10 years, for example. And that makes it, you know, really feasible for them to really compute their order book and, and so on. You know, all that I can say is we look at the velocity of our business based on the pipeline that we have and the projects, when we engage in those projects, they kind of, each project would have, you know, it kind of comes to a completion in a matter of six to nine months before something else happens.
So this is the reason why we, we prefer reporting on our recurring and repeat business which is an indication of what business we are getting from our existing customers. But many of them, when they are projects, we still have to compete for them. When these are products and licenses, they usually just happen.
Unidentified Participant
Got it. Thank you. My second question, sir is I think. In Microsoft you have established a name. For yourself in a very niche area. Which I think is a, is a great business model. Are you also considering. Establishing other platforms, e.g. Sap or Salesforce or Workday or any. Of these platforms which are growing quite fast as well?
Ajay Mian
Sure. So Rajesh, this was a great question to ask maybe 10 years back or five years back, but today this question is significantly less relevant. And the reason I say so is the investment today needs to go into what is next. And the next is D data engineering and AI. It doesn’t really matter whether you are on one accounting platform or another accounting platform. You may be able to perform one function differently or more efficiently. Right. But the fundamental change today is brought in by AI. And AI requires data pipelines to be built from their original sources to be fed into those. And businesses need to learn how to leverage AI, what solutions to build on AI. So that is a bigger opportunity. And that is where we are focused on. That is where our investment will go. We are not looking at whether we should add an SAP or a Salesforce or another ERP or CRM, because really, it doesn’t matter. It is not at all important. Today, Microsoft has maintained a significant momentum and it is leading both the AI race and also the business application space.
So just having, because, you know, we are not just a distributor of, of commodities, we bring solutions to our partners. So that is the reason this is not as important for us. All right.
Unidentified Participant
Thank you. All the best.
Ajay Mian
Thank you.
operator
Thank you. We’ll take the next request from the chat window. Jaraj Manoja, I request you to unmute and ask a question.
Unidentified Participant
Yeah. Hope I’m audible.
Ajay Mian
Yes.
Unidentified Participant
Yeah, Sir, I was just delving deep into the split across customers in the top five top 10 buckets. If I were to see that top five and top 10 customer bucket has grown sensibly on a YOY and a QQ basis. But, but X of that bracket has, has grown degrown sharply. Could you throw some light? What exactly is happening?
Ajay Mian
Sorry, I missed your second part of the sentence.
Unidentified Participant
Yes, so, so I was saying that if I were to look at the bucketing of the customers and if I were to look beyond top 10, looks like there have been sharp decline in the top line growth. What would explain that? Is it intentional or something?
Ajay Mian
See, it’s very simple. It’s very simple. You know, last quarter our customer ad declined. This quarter we had more customer ads, but those customers did not really add revenue so much. So I think it’s just timing issue. There’s nothing structural or any pattern in this.
Unidentified Participant
So could you explain a little more maybe, how does it make a transactional one? Transactionally?
Ajay Mian
Sure, yeah, of course I will. So, for example, let’s say you sign a $100,000 project. Now when you sign a $100,000 project, you don’t get that $100,000, you know, in the quarter in which you have closed that contract because you are not supplying a, you know, supplying, you know, some material. You are engaged in a project. And most of these, these, these professional fees are paid as you achieve milestones in your project. So if this project, for example, is going to run for six months, then you will have, let’s say only $25,000 billed in the quarter in which you close this account, maybe another 50,000 in the next quarter and maybe the balance in the third quarter.
And if you are adding less number of customers in a quarter, then obviously the number outside of your top 10 will look low or will not grow that much. The top customers are obviously the ones where the relationships have not only been multi year but also multi dimensional. There are customers who have moved into the top five and then moved out from that. And that’s just seasonal based on what engagement is going on at a given point in time. But there is no pattern that you can really derive from this.
Unidentified Participant
Understood, understood. And so specifically on the Microsoft channel of sales and Microsoft, otherwise how should I understand that channel playing out right now? Because just doing a calculation onto so US seems to be a little on a sequential basis taken a hit and on a yoy basis also us as a geography, the growth is lower than the company average. If I were to just put it. So how should I understand that specifically it has got to do specifically with Microsoft as a sales channel or Microsoft as a client?
Ajay Mian
Yeah, not at all. Not at all. See any, any impact that you see and you see what happens is there will be some churn. That’s the nature of the business. So for example, if there is a customer, so we had a customer that has been, I’m just taking an example. So this customer had been with us for seven years or has been with us for seven years. And last year there was a transaction in which a private equity firm came and bought that customer. And when that happened, the private equity firm wanted to consolidate the operations of this customer into, you know, into an enterprise suite of solutions that they had been running for the various entities that were, you know, in the group.
So they decided to make investments on that side and they ramped down on what they were doing with us. So that’s for example, I mean they are still a customer because they still need those solutions. But their new investments were going, you know, on the new platform that the group which acquired them was working on and on this side it started reducing. So this is an example of what happens. And then there will always be situations where you implement a solution. The customer stabilizes on that solution and his need for support starts to come down before he has to make a new investment.
And this is the reason somebody had asked me, why don’t we do SAP and so on. The more important thing for us is that are we ready for the next that the customer needs. So if a customer has done an ERP now and his next is AI, not just the AI which is embedded in the ERP solution, but let’s say something else. So we are investing in being ready for that next rather than another ERP or a CRM solution. So some of these things are just natural timing. Either solutions stabilize and the need for support comes down.
Or in case of the first example, I took a transaction happening and some changes happening at the organization level. But those are the only type of things which have happened. There is absolutely nothing that you see you say structurally changing from Microsoft side.
Unidentified Participant
Understood? Fine, sir, thank you. I’ll give it.
Ajay Mian
Thank you.
operator
Thank you. We’ll take the next question from Ganesh. Ganesh, you can unmute and ask.
Unidentified Participant
Am I audible, sir?
Ajay Mian
Yes, Ganesh.
Unidentified Participant
Okay, sir. A Jenny has been its popularity has. Been exploding a lot since the last year or so. So have you encountered situation internally, either through customer feedback or through a market research or even internal analysis where aspects. Of your product you had to work. Differently as compared to a pre gen world.
Ajay Mian
So very clearly, I mean I would say the one fundamental change there is, for example, I take the case of an ERP implementation project. Now thus far when you talk of an ERP implementation project, you are typically looking at how to automate processes, how to make them more efficient. But now with the advent of AI and customers wanting to do more with AI increasingly, one of the first things that we look at, even before we start thinking of how to tailor the processes, we are looking at that which parts of the organization can be automated by using agents.
You may first bring in agents to automate a set of things and then look at that now what other processes need to be automated through erp? So this is a very, very fundamental change. It has not really, I would say fully unleashed the implications that it has. But this is going to be very significant in the coming times. Rajiv, you want to say, you want to add something here?
Rajiv Tyagi
Yes, I want to add two points that one, what has changed in the last one year. We also recently did a survey with all our existing customers and you know, everybody is keen on AI, everybody wants to discover the use cases. Secondly, what we are also observing now is that previously if the requirements that we are floated by the customer, they were primarily related to ERP or business applications. But now in their requirement also they are specifying the areas where they like the AI to be, you know, present. So they are becoming much more aware.
But this all thing, everybody is on a learning curve, right? Now but the acceptance that AI is not going to be embedded in the business processes is very much even in the SMB segment. So every entrepreneur today is aware that they have to, you know, embed the AI in their processes and everybody is searching for the best use cases to begin with so they have a success story and not, you know, failure to begin with. So that is the biggest change that has happened in last one year.
Unidentified Participant
Just one more question for me sir. So beyond the hype that AI has generated and everybody is kind of asking, hey, have you, have you got a. Gena embedded in your systems and all. That, whether it is valid or not. So have you come across use cases in your system, in your artifacts or. In what you deliver? That could existentially be risky with a getting more mature and in turn affecting our future revenue or future prospects. I just want to think.
Ajay Mian
Yeah, so I think to the best of our experience thus far, all the cases where customers are, you know, asking us to embed the AI agents and other areas. So one, we are using everything through the Microsoft stack. So Microsoft does provide this security feature that whatever data we bring in is not utilized by the models for their training which is a big differentiator. So enterprise point of view, their data is not getting uploaded to the general LLM models and from the misuse of AI if the risk and you know, whatever risk could be there.
So I think that is something which there are no empirical evidence as of now. There can only be at least at the businesses level. So that is what we have not and it is not going to impact our revenue streams. I also like to clarify one more point which is whatever is the business as usual for us that is going steady. So you know, the ERPs will still be sold, services are still there and whatever product and licenses we were selling will still be sold on top of top of it. There is going to be an additional revenue stream of the copilots and agents.
So it’s going to be the incremental revenue and the services that we’ll offer. Obviously we expect that the AI related services will also come under premium. But these monetization models, once we are through the phase of PoC with the customers we have the relevant case studies. I think there the model will mature more and we’ll have much more clarity that what is the overall incremental revenue that we expect in the quarters and years to come.
Unidentified Participant
Thank you sir.
operator
Thank you. We’ll take the next question from Amritu. Amrit, you can unmute and ask.
Unidentified Participant
My questions are almost answered But I would like to again request a little bit of information on this, that given that there’s uncertainty in the market and due to tariffs etc, ID spending is generally cut down by the customers. So particularly for this year, are we looking to basically tap into repeat business, especially with the AI angle, or are we basically focusing on acquiring new customers? Just considering, because figuring out a new technology partner when times are uncertain might be a little bit of a difficulty.
And this is just hypothesis from my side. Thank you.
Ajay Mian
So, Amrit, it’s not an either or. You know, we have different teams working on acquiring new customers and then we have teams who are working with these existing customers and trying to get more. So it’s not an either or. There might be some, you know, decision making may get prolonged, which is understandable. So it’s not, you know, we by design are not trying to tilt on one side or the other. It’s very important for us to keep maintaining the momentum. So we will always keep looking for new business and we will also keep looking for more opportunities with the same customers.
Unidentified Participant
Thank you.
operator
Thank you. We’ll take the next question from Sandesh Kumar. Sandesh.
Unidentified Participant
Yeah. Hi, sir.
Ajay Mian
Hello.
Unidentified Participant
Yeah, historically we have grown at 20% CAGR. Even last year also we are grown at 20%. Like how much growth we can expect this year.
Ajay Mian
So I think, you know, to be, to be fair, it’s a little bit hard to say that, you know, we, we take internal targets to grow around that. Whether that actually happens or whether that gets moderated a little bit, it’s, it’s a little bit early. There are initiatives, some of them may click and we may be close to that number. But I think for me to put a number there and say this is what will happen would be a little bit unreasonable.
Unidentified Participant
Okay, so my second question, like, in spite of adding like new customers, like why there is a degrowth or little growth vice, did we lost any customers?
Ajay Mian
So we, we addressed this point, you know, a couple of questions back. You have to see that every customer that you acquire, our customers, for example, if they engage us for implementing an erp, it’s being done as a project. At some point in time, this project will end and the customer will move into a support mode. At some point in time, he may have a new project coming in and then we will have a new implementation. But this is not the model where you give X number of people to an organization and build them at a rate of Y and you have a consistent flow of X into Y.
It may be a very nice model from an arithmetic point of view. But that can also be a very risky model because you are not connected with the end customer. In our case, we are connected with the end customer. We are making an impact to his business directly rather than having dependency on, you know, another large company who would subcontract some of their work to us by taking some of our people. So it’s a different business model. And in this model some of these variations are very, very inherent.
Unidentified Participant
Okay, so my last question, like earlier we gave guidance of around like thousand crore revenue maybe by 2030. Like how we are planning to achieve this, like any new segment of revenue or inorganic growth to scale up this revenue.
Ajay Mian
Yeah. So all of that, so there isn’t any one thing, you know, there is organic and there is inorganic and there are new segments getting added. Who would have said five years back that AI will play such a big role or even three years back or even two years back, who would have said that AI will play such a big role in what organizations are doing and what companies like us will do? So we are actually, and if you look at all the technology curves, we are currently sitting at a segment of that curve where things are changing very rapidly.
Anybody trying to forecast or predict what will happen in the next six months may be saying something too early or too late. So that’s hard to say. This is a very, very rapidly changing space. We just have to make sure that we keep running.
Unidentified Participant
Okay sir, that’s it. That’s it. From myself. Thank you.
Ajay Mian
Thank you.
operator
Thank you. We’ll take the next question from Piyushwat. You can unmute and ask.
Unidentified Participant
Yeah. Hi sir. Congratulations on the organization completing 25 years.
Ajay Mian
Thank you. Piyush.
Unidentified Participant
So my question is a bit more. On the product side. So you mentioned in the earlier con calls that domestically we compete against the. Big four firms and overseas in the. US there are few firms. You mentioned some names. So in India specifically, are there any. Smaller firms that are basically leveraging the. Microsoft tech stack and creating these products that we compete with basically?
Ajay Mian
Clearly. Radhiv, you want to take that?
Rajiv Tyagi
Yeah, there are definitely there are certain partners who leverage Microsoft tech stack. They are also kind of creating products solutions which they offer in the market. But I can also tell you that by far we are the prominent and number one partner for Microsoft. And from the overall sales and you know, number of customer ads point of view. But there is, there, there are other partners. It is not that we are the only ones.
Unidentified Participant
Okay sir. And one, just one more follow up on that. Are we planning to roll out any new products.
Rajiv Tyagi
You mean any new vertical solution kind of a thing.
Unidentified Participant
Right sir? Right.
Rajiv Tyagi
So right now we have, you know, matured another solution which is you know, currently we have done the PoC in the sense that it has gone live with one of the customers that we have working on. So this is again for the industrial goods where how they could do the quotation for the industrial goods CPQ is the area and besides that Ajay has mentioned in his presentation also our existing solutions, we are also modernizing them and bringing the complete agentic AI layer in these solutions. So we kind of will be releasing the version 2.0 for all of these solutions in the quarters to come.
So we will be implementing kind of upgrading it with their existing customers and obviously there will be, you know, new customer acquisition.
Unidentified Participant
All right, that’s it for my side. Thank you sir.
Ajay Mian
Thank you.
operator
Thank you. We take the next question from Agam Shah. You can unmute and ask.
Unidentified Participant
Am I audible?
Ajay Mian
Yes.
Unidentified Participant
Yeah, thanks for the. So most of my questions answered. So again coming back to the group, I mean you already expanded the, the growth has been slow because in terms. Of you know, customization being last quarter. A little low and the payments being on milestone base. So the whole culture if you can broad environment, if you can explain the demand environment, how it has been and how the things are looking like going ahead. I mean are we, let’s, are we back on terms of you know, growing. I’m not putting a number on to get say 15, 20 growth but are we the customer addition for this quarter has been good. So are we there in terms of growth and how the demand scenario.
Ajay Mian
You see I had a slide which where we spoke of the growth drivers in this quarter. So clearly there have been some new, you know, growth drivers and maybe Ritu wants to talk a little bit about that. Ritu has had, she looks after now the operation that we have set up in UAE with a new sales manager there and also with a new sales person in Africa. So we see good momentum here. She has also been engaged with our other customers. If you look at from the overall health of the business and know I started by saying that you know the growth seems to have moderated but if you these numbers do not necessarily convey the health of the business because internally we are, we are very busy.
You know the amount of pre sales engagements that we are undertaking today and you know both Ritu and Rajiv are undertaking today are more than they have been in the last several quarters. So that momentum continues and we have, we have no doubt that we will be able to build on this in the next couple of quarters. Ritu, you want to add something there?
Ritu Sood
A couple of points I just want to add. So one is since the growth drivers, so we are also focusing on the rising industries in these geographies. So for example, in Africa we see lot of potential and growth in banking and financial services. So that has become a key growth driver in that region. And then at the same time the new products that Microsoft has launched, for example for customer service contact center. So that is something that we are leveraging to gain momentum in the specific industries. Likewise in the UAE as well, we are focusing on the industries that are gaining momentum there.
So these are the growth drivers which are definitely going to bring results in the next couple of quarters.
Unidentified Participant
Okay. And in terms of inorganic acquisition, so.
Ajay Mian
You know, as I said, this is work in progress. Saying anything on this, you know, is always premature unless the ink has hit the paper. So when something happens, you know, of course we will let everyone know.
operator
Thank you. We’ll take the next question from Sid. Sid, you can unmute and ask the question.
Unidentified Participant
Good afternoon, sir.
Ajay Mian
Good afternoon .
Unidentified Participant
sir, I have two questions. So first of all in the last quarter we mentioned that we are working on cyber security acquiring capabilities to do that. How far we are and have we actually started a project or did we work on the cyber security for any existing customer or a new customer?
Ajay Mian
Yes. Sandeep?
Sandeep Jain
Yeah.
Ajay Mian
You want to take that?
Sandeep Jain
I would like to take that. We have made quite a progress in that we have identified some of the resources as well as we have completed couple of projects. These were predominantly into the areas of soc which is Microsoft again Microsoft led solutions called same Sentinel from Microsoft. We did it for one of the banks. Apart from that there were a couple of projects that we did for a couple of companies that were predominated towards the device management and application management which were again it was focused towards Microsoft technology that’s called EMS that we completed this quarter, last quarter.
Unidentified Participant
That’s great. And how do you see that scaling up? Do you see a traction?
Sandeep Jain
Yeah, I think there’s a huge potential. In the security perspective. We’re talking about some of the solutions that we are bringing to our customers in terms of API security, in terms of the application security portfolios and therein. Most of the companies are now going in the SaaS model so we are seeing potential pull in both areas.
Ajay Mian
The one thing that I would like to add here is that our play in this area is going to be a little bit different from the play that you would probably see from a typical company here in India, if you look at the Indian security market, probably 90% of the revenue of these companies is driven by selling the products and there is probably 10% of consulting. And when they are selling the product, it becomes a very, I would say close finish because distributors would want to throw in margins and they would want to throw in discounts and so on.
We don’t want to compete in that business. We don’t want to spend our sales and delivery effort in that business. So while we will continue to work for our customers, but we are trying to twist this and bring the security solutions and consulting to our international customers. This is nascent right now. This will take some time, but this will keep building, surely. And this is also an area where our offerings are not going to be limited only to Microsoft. There will be other offerings that will go along with it. So you know, our existing customers in India will keep, you know, we will keep looking for their needs and then we will also leverage our other sales network internationally to bring us to our international opportunities.
Unidentified Participant
Got it. Thanks. Just another question. So you mentioned that we are doing billing for the consultancy part. We are doing billing per hour. Do you see any changes in the industry where in the future maybe two or three quarters down the line, the billing might be milestone basis. So let’s say if client engages with you, they say you have this much amount and just consult us and just let us know what are the best things that we can, that you can offer or will it still. Do you see it still being per hour basis?
Ajay Mian
So it’s, it’s all the time. This is how the model has always been. The. So when you talk of the, the, the, the overall fee, the fee is a component of first of all making an assessment of how many hours will an activity take, budgeting for any contingencies and so on. And then you want to also figure out how much billing you want and that’s how you put it based on geography and based on the competitive situations there, you decide on a rate that you want to work with and that’s how you come to your professional services fee.
And sometimes it is also dependent, not sometime, but all the time. It is also dependent not just on how much effort you are putting in, but also how much is a customer gaining from this. So pricing is always a critical thing and we keep looking at it closely based on the nature of the solution being delivered, based on the geography of the customer, based on our engagement in that a lot of projects are built on a milestone basis and that’s the very nature of project based businesses. There are customers, particularly in some regions who definitely want to go milestone.
So for example, if we are following Agile methodology, we want to bill for every sprint completed. So that is also, you know, if a sprint is a monthly sprint, then we will bill monthly. But the customer has an outcome of the sprint at which he pays. So it’s a combination of these factors.
Unidentified Participant
Got it. That makes it very clear. I wish you and the company all the best and great future ahead. Thank you.
Ajay Mian
Thank you very much.
operator
Thank you. We’ll take the next question from Mithin Shah, then you can unmute.
Unidentified Participant
Yeah. Thank you for giving me opportunity and congratulations once again for completing 25 years.
Ajay Mian
Thank you very much, Mithin.
Unidentified Participant
Yeah, so my question comes back to the same question which had asked in the last con call actually now since we have completed, you know, almost 25 years, you know, it’s a great fit. Absolutely. Because to survive in any industry, you know, we know it’s, it’s a competitive industry everywhere, basically whatever B sector it is. But my only question is, and I have absolutely great. I mean I feel very proud when I see this management, you know, the entire management, you know, they’re absolutely so transparent, so honest and so dynamic. But the only thing, you know what really disappoints me is the same question which I asked last time.
After having completed 25 years, we are still sitting at Ted 150 crores of revenue, a Ted below 150 crores revenue, which actually disappoints me. Although I can see a lot of improvement in the margins year on year. When can we see the needle moving in terms of revenue because we had projected say something around thousand crore revenue by 2030. It looks a very daunting task to me, you know, in the next five years, almost scaling eight to ten times from here. So how, I mean, can this be manifested? Or, I mean, I don’t know, I just wanted to ask that actually.
So what are the plans for basically?
Ajay Mian
So your point is right and your questions are right. Okay. Now whether that date is 2030 or it is 2032 or 2034 is not the point. The point is that when you set a goal, the goal needs to be audacious enough. There’s no point of setting up something which is like trivial. You know, there is also a corresponding question which people ask that. Why is it that you have grown in the last, let’s say three years but not in the past 23 years or, or 22 years? Right. So you know all of these things and all of these questions are valid.
We can ask the same question to say that why did for example, India experience a good growth in the last 10 years but not in the past, you know, so many years? So I think I have tried to answer this. Sometimes some things change fundamentally, of course we learn. But I would say in our case, Covid happening brought in a couple of fundamental changes. The first change that Covid brought in was it taught people worldwide that it was feasible to get consulting type of work done remotely and you could get the same quality as you would get from somebody providing the services from across the street because the method of working is the same.
Now this was a very fundamental shift. We have never been, and that’s the character, good or bad, but we have not been a company who has had a business model of providing resources to other companies. You know, I started my career working in that kind of an environment, but at Olli Tech we have never done that. We have always focused on outcomes to the customers and therefore looking at mid and upper mid sized businesses to see what is it that this business requires. And then we put ourselves at task of delivering those outcomes to the customer.
Had our business been in providing a certain headcount or obviously that business can be multiplied when the economy does well, people need more people, you know, businesses need more people or more headcount. You recruit and you give people and you can keep increasing, you know, your relations build and it can be a great business. It’s just that, you know, that’s not the business that we are in. It’s not to say that it’s a bad business, but you know, we are not in that business. So the business that we are in, you know, is very consulting led.
We pride ourselves with the impact that we bring to our customers. We feel very badly if something that we have taken up to do has not brought in desired outcomes. And then we apply ourselves to make sure that the outcomes become what they ought to be in the process. You are right. We did not grow as one would have expected a typical Indian IT company to grow. But then post Covid and that’s not 2020, that’s more like, you know, two years later, because the world started waking up to the reality that we are finally going to be alive and not dying.
And then the businesses started changing. So that brought in a fundamental change and with that was our push to increase our business internationally. So these things have come together and that is what has seen the growth. And then there will be more things which will change, you Know, you can’t really draw a graph today to look at the trajectory that we will have over the Next, let’s say eight years or 10 years because there will be, you know, periods in between which will see a delta shift in that trajectory.
Unidentified Participant
Noted. Noted. I really appreciate also one more thing, you know, as we just valued that we start within the last con call and we also discuss in this on call regarding the, you know, starting of new vertical related to cyber security solutions. Is there possibility, you know, to include this in a presentation going forward? I mean, how much does it contribute? You know, probably. I know it will be very, very minuscule as of now, you know, but how has it shaped up? I mean the, the way we thought it, you know, to start and get it, get, getting it accelerated.
Has it gone in that fashion? As, as we would have thought? So that would just give us an idea.
Ajay Mian
Sure. So we will start doing that. But I think it probably would be more meaningful to do that towards the end of this year. As I said, this is a nascent practice. We are not in the rat race of pushing boxes and products at zero margins to customers just to add up revenue. We will work on opportunity which brings, you know, reasonable margins as well and add value to our customer set. But these numbers should start becoming more meaningful I think in a couple of quarters and we will be happy to start reporting it.
Unidentified Participant
Sure. And just last only, I mean the concluding to this. Are there any margin difference between this vertical and the normal vertical that we have? I mean, what is the margin difference?
Ajay Mian
I would say that, yeah. So I would say that when it comes to the services side, there isn’t really much difference when it comes to the product side. You know, first of all, the percentage of the product in this business typically is higher than it is in, for example, an ERP project. And in this the margin could even be lower. But on the consulting side, the margin would not be any different.
Unidentified Participant
All right. All right. Yeah, that’s it. That’s it. Thanks a lot once again. And as I said, I, I’m, I really proud to be associated with, with the company and with the, with the top. A very transparent management.
Ajay Mian
Thank you.
Unidentified Participant
Thanks a lot. Really appreciate it.
operator
Thanks. Thank you. We’ll take the next question from Jaya Kumar Jayakumar. You can unmute.
Unidentified Participant
From Navy Tamil Nadu Extreme place. I am associated with your company for the last two years or since you are listed. And I am very proud to say that I have gained very much from your company through this, your listings. And I want to have some commercial clarification I don’t know whether you are eligible to. Whether you are in power to conduct that. When I go through your some six or seven latest quarter report almost I see in particular quarters especially we just take that previous, maybe previous quarter we are having a profit margin of some amount and this particular quarter that profit margin is almost 30 to 40% lower than that.
Whether that same pattern will be continuing for the coming years. Also what is the business cycle, why it is repeated often in particular month especially in all IT companies that is applicable to you also especially in first quarter that report that margin range is little low.
Ajay Mian
You are looking at margin or you are looking at the product purchase price.
Unidentified Participant
Net profit. I mean net profit.
Ajay Mian
Oh, net profit for the whole business. Okay. You know, as I said, first of all the right comparison would be Q1 to Q1 of last year. And if you would see that, you know, the percentages are roughly the same as I had mentioned previously, that Q4 typically sees some adjustments and these adjustments could be on account of the forex rate fluctuation. This could also be on account of some provisioning of expenses that we might have done in earlier quarters. And if all of that doesn’t happen, then that gets added back in the quarter four. So those are basically the things.
There is nothing fundamental, I would say that changes.
Unidentified Participant
Okay. Then I can take it that it’s a routine thing every quarter. It will be a cyclic thing and nothing we need not worry about that particular downside result in a particular quarter. Okay. That’s what I can.
Ajay Mian
Absolutely, absolutely. And you know, there will be some quarters, for example, if we have a large project win and which requires, you know, some which involves some significant product purchase and so on. So there will be some ups and downs. But this is broadly the range and typically these adjustments would, you know, possibly pip the last quarter a little bit.
Unidentified Participant
Okay. Okay. As of now I am feeling high hopes on your farm based on your recent consults and based on your actual real outputs in your balance sheet. And I think last time you are declared a new and also 55 and and me and my group are pinning high hopes and we are entering a little largely also based on your latest performance. I want to thank you sir. Thank you. Thank you.
Ajay Mian
Thank you very much. J. Kumar, thanks for your kind words. And all that we can say is that, you know, whatever happens, all of us continue to strive to build the organization. Money is important, profits are important, revenue is important, but also important is the satisfaction of our customers. Also important is how good our colleagues feel within the organization. All of these things together build an organization I think and that is what we try to work towards.
Unidentified Participant
Actually I’m following your data for the last one and half years in fact without going through your. I just went through your last concur only after going through your data for the last seven or eight quarters I got some confidence on your particular company and especially people hesitate to enter the small caps, micro caps and we are buying on these lots and all. But even then I, I had that confidence and we this we in fact I’m not a techie, I’m not a IT person. I’m basically a chemical engineer. I am a retard person. Then I consulted with my few friends and after going through your records and I am paying hopes only doubt is that quarter to quarter sometimes some huge var is there that now you clarify.
Let us hope for this. Thank you very much sir. Thank you. Thank you.
Ajay Mian
Thank you very much Mr. Jar.
operator
Thank you. We’ll take the first follow up question from Jaraj Manocha.
Unidentified Participant
Yeah, thanks for the opportunity. If I were just to break down the revenue, I just wanted to have a view around what would be the pure play consulting revenue as a percentage of top line and I’m just trying to understand how it, how is that moved during the last two, three years.
Ajay Mian
So our product versus consulting typically stays in the range of product being somewhere between 42 to 45% and the balance being services. So you will see some quarters where the product is 42 and services are 58. In this particular quarter the product has been 45.6 something and services has been the balance.
Unidentified Participant
And while you are saying services there would be both consulting and implementation part I’m assuming.
Ajay Mian
Yeah .
Unidentified Participant
So, so do we internally even capture separately consulting Pure Play consulting as a, as a head separately, do we do that?
Ajay Mian
Yeah, we don’t. So so let me say we don’t. And the reason that we don’t is that we can’t execute any project without it being front ended by a consulting piece. So when you start an engagement, for example even to implement an erp, the first thing that you do is to do the solutioning. You understand the business, you make an architecture, you do solutioning. Now this is all consulting. We don’t bill it separately, it’s all part of the project cost. But it’s a definitely a separate activity which is more aligned to consulting rather than just so you know, when we talk of implementation and different people understand different things from when we say implementation.
But implementation could be something like bring in a product, install the Product, configure the product, train the people, bring the data and done. But we cannot do all of this before we have a consulting piece, you know, heading all of this.
Unidentified Participant
Understood, Understood. And this proportion has been during the past two, three years has been in a similar range of 45 to 60, 30, 55 sorts of.
Ajay Mian
Yes. If you see all our, you know, decks which are available at NSE and on our website, the product stays in the range of 42 to 45% of, of the revenue.
Unidentified Participant
Understood. Thank you.
Ajay Mian
Thank you.
operator
Thank you. We’ll take the next set of follow up questions from Vikas B.
Unidentified Participant
Hello sir.
Ajay Mian
Hi Vikas .
Unidentified Participant
Sri, we have now a team of around 360 people. What is your approach to attracting and retaining talent especially with specialized AI and.
Ajay Mian
Technology skill in high demand? Well, the most important thing in attracting talent is to do good work. And good work is, you know, when you are, when you’re doing work which is impacting customers, when you are doing work which is helping customers perform their businesses better, that brings benefit not just to the customer, it also brings a significant learning to us. For people in our industry, one of the most important things is are we learning enough? Are we doing good work? So this is one thing. The second thing of course is that we look at the various aspects of what makes this a good place to work.
And we have been for the last three years conducting this survey and all these years we were qualified for a great place to work which is kind of an indicative of how people feel. But your question is pretty much on the spot. Getting high caliber people and keeping them is a constant challenge. You cannot take it for granted. There is no shortcut to it. You have to keep working at it. And all of us have recently seen the news from Mark Zuckerberg who has offered people $100 million and in one case, in case of Meera Murati, he even offered her a billion dollars and was not able to bring her in.
So these are not easy questions. It’s something that we have to work on constantly and you know, within the management team, Ritu in particular, you know, looks very closely after the HR function, the corporate HR function. And Rajiv keeps working in making innovations and building new products so that we stay, you know, in the, at the front of the partner ecosystem. Ultimately everybody wants to be with a winning team and so we try to be a winner.
Unidentified Participant
Yes, sir. Thank you, sir. Thank you. Thank you.
Ajay Mian
Thank you.
operator
Thank you. We’ll take the last set of follow up questions from Rohan Mehta.
Unidentified Participant
Hello sir. Thank you so Much for the opportunity again. So at the start, sir, you spoke at length about how Microsoft is leading with AI. Now I also wanted to understand that given that Microsoft itself is growing quite high, is it possible for us to grow at 30% revenue CAGR over the next three years? Is that a realistic target in your opinion?
Ajay Mian
See, Microsoft is growing in various ways. I think if you look at their specific business lines, let’s say you look at Dynamics365, it has grown at around 23%. If you look at the company wide, year on year, I think it grew by a little over 15%. But the question is that the specific areas that the cloud grew significantly. So whether a 30% growth is possible, I see possible for sure because we enter new markets, we enter new solution areas. We are entering AI One way, for example, and this is important, one way in which Microsoft is able to often grow its revenues is by increasing price.
Now that is not always a luxury that we may have available. But overall, if you see, because the whole ecosystem is growing and because the product that we have put our bets on, they are growing and Microsoft is doing well, it augurs well for, you know, in a couple of quarters. So it will be purely theoretical exercise for me to say whether, you know, we can grow 30 or 15 or 20 or 25. I think there is a lot of, lot of things are happening right now. The solution areas are changing, customer needs are changing, AI is changing things dramatically.
The political scenario is changing, the global wars are having their own thing. So all of this thing is in such a mix that it’s very hard for anyone to put all of those variables in one equation and say that where will the next dot be? We just have to stay agile, keep looking at it and working on that basis.
Sandeep Jain
I just like to add 2 cents here. So Rohan, what you see from Microsoft perspective, one thing which is very clear is that from a hype stage, what they have proven is that at least in the enterprise space, the consumption and adoption of copilots has increased significantly, which is where they see in the monetary growth as well. Now what we need to see is when the enterprise adoption has increased, it is going to trickle down to the supply chain and to the SME market as well, which is where, you know, there is always that impact that there are leaders in the industry who adopt a solution and then the entire supply chain kind of follows it the same trend.
So which is what the space, the sweetest part, where we are serving there. Also we feel that this trickle down impact has to come in the next few quarters which will be where we’ll be gaining out of it. So that definitely is going to happen because the proof of point has come by the result declared by Microsoft.
Unidentified Participant
Thank you. Thank you so much for the clarification. And second, my last question is on the deal flow. How is it shaping out for Q2 currently? How do you see things at the moment?
Ajay Mian
So as we mentioned, we have seen no reduction in demand. Ritu and Rajiv are more busy than before with their pre sales opportunities. How many of them actually get converted in Q2? How many of them slip in into Q3? That’s always hard to say because these, these engagements take several months. But overall people stay busy. We are talking to customers. The whole sales and marketing team is pretty busy and agile and I think we should be doing well.
Unidentified Participant
Okay. Okay sir, thank you. Thank you.
Ajay Mian
Thank you very much.
operator
Thank you. Since that was the last question, do you have any closing comments?
Ajay Mian
Well, I think I said everything that we possibly would have wanted to say. Just thank you everyone for joining this afternoon. Happy to share our thoughts and happy to share what’s happening on our side. We’ll be always updating you wherever something of substance happens. Again, thank you very much.
operator
Thank you sir. Thank you to all the participants for joining the call and thank you to the management for your valuable time. You may all disconnect now.
Ajay Mian
Thank you.