Aurionpro Solutions Ltd (NSE: AURIONPRO) Q3 2025 Earnings Call dated Jan. 28, 2025
Corporate Participants:
Aashvi Shah — Investor Relations – Adfactors PR
Ashish Rai — Chief Executive Officer
Analysts:
Vimal Gohil — Analyst
Anmol Garg — Analyst
Dharshini Kumar — Analyst
Shikhar Mundra — Analyst
Deepak Poddar — Analyst
Raj Mohan — Analyst
Vivek Gautam — Analyst
Lakshay Agarwal — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Investor Call of Orient Pro Solutions Limited to discuss the Q3 and Nine Months FY ’25 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only 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 touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms Shah from AdFactors PR’s Investor Relations. Thank you, and over to you, ma’am.
Aashvi Shah — Investor Relations – Adfactors PR
Thank you, Rutuja. Good evening, everyone. On behalf of the company, I would like to welcome you all to the earnings conference call for Q3 and nine months FY ’25. Today, on this call, we have with us from the management, Mr Ashish Rai, Vice-Chairman and Group CEO; Mr Vipul Parmar, Chief Financial Officer; and Mr Ninaj, Company Secretary. We will begin the call with brief opening remarks from the management, followed by a Q&A session. Please note that certain statements made during this call may be forward-looking in nature. Such forward-looking statements are subject to certain risks and uncertainties that could cause the actual results or projections to differ materially from those statements. Oriental Solutions will not be in any way responsible for any actions taken based on such statements and undertakes no obligations to publicly update these forward-looking statements. I would now like to hand over the call to Mr Ashish for his opening remarks. Thank you, and over to you, sir.
Ashish Rai — Chief Executive Officer
Thanks, Ashwi. Good afternoon, everyone, and welcome to this earnings call for Q3 and nine months FY ’25. I’m sure by now you’ve all received the investor deck and I hope you had an opportunity to review it. I’m excited to share with you the results for Q3, which once again demonstrate our strong performance and reinforce the success of our chosen strategies, the competitiveness of our offerings and the healthy demand environment. What’s especially encouraging is that our growth is fairly broad-based across segments and the many business units are powered by the disciplined execution of our teams and their unwavering focus on delivering great outcomes for our clients. Let me walk you through a quick snapshot of the financial highlights for the quarter and for the period. If I recap the performance, revenue for the quarter stood at INR306 crores, which is a 32% increase on year-on-year basis. Our profit-after-tax stood at INR48 crores for Q3 and PAT margins for the quarter stood at 16%. EBITDA margin for the quarter stood at 21%, which is at the midpoint of our guided range of 20% to 22% EBITDA. Our margins have largely stayed within the guided range for the last several years, highlighting the strength and stability of our business model. And this has also allowed us to aggressively step-up our R&D investments to tap into the significant opportunities across all our segments. We continue to witness strong momentum across the segments and the growth numbers clearly reflect this. Banking and Fintech segment delivered 41% growth, reaching INR474 crores, while Technology Innovation Group segment grew by 23% to INR372 crores. During the quarter, we secured several significant wins, including deals with two leading banks in Saudi Arabia for our flagship transaction banking suite. Additionally, we continue to deepen our presence in existing markets, leveraging the ongoing wave of transformation and digitization in corporate banking. Looking ahead, we continue to focus on expansion into both US and Europe. We made significant progress on building out the channel and building out the partnerships in the US market over the last several quarters and the next several quarters will be about building out a strong channel into UK and Continental Europe. Our recent acquisition in Europe positions us very well to cross-sell our banking products in the region, further strengthening our footprint. Our expansion into Europe will be led mainly by banking and transit segments, both of whom continued to grow very strongly for us on a global basis. Within the Technology Innovation Group, the Transit segment continues to gain strong traction with significant wins both in India and international markets. In India, we secured prestigious deals with major metro projects, including phases of Delhi Metro and Chennai Metro. And these wins not only reinforce our growing presence in the Indian market, but also highlight our capability to deliver a world-class solutions that cater to the need of complex urban transit systems. Globally, the transit segment has seen strong demand as cities and governments invest in modernizing their transportation infrastructure. In addition to the transit segment, we also achieved major milestone in the data center space, signing several large deals. These wins underscore the increasing demand for robust scalable data center solutions and our ability to meet the evolving needs of enterprises in this critical area. We remain committed to innovation, consistently investing 8% or more of our revenues in R&D, a trend that we expect to continue going into the next financial year. This sustained focus has enabled us to deliver some noteworthy launches. During the quarter, the most significant being Aria X-AI, our groundbreaking explainable AI platform, which has a global relevance. Looking ahead, we plan to build-on this momentum with more innovative solutions in the pipeline, driving value for our clients and staying ahead in the market. We’ve developed robust capabilities to achieve the guided growth targets through organic means backed by our business model, backed by consistent execution. Additionally, we continue to evaluate strategic acquisitions where they may help us accelerate the delivery of our strategic blueprint in chosen areas or augment our delivery capabilities in chosen markets. A key development in this area is our expected closure of acquisition this quarter. This acquisition will significantly strengthen our presence in the European markets, providing us with a strong foothold and delivery capabilities in the regions. Our financial strength continues to be a cornerstone of our success and this was further validated in the quarter by another enhancement in our credit rating, as you would have seen. As we approach the close of FY ’25, we remain confident in achieving our guided performance and continue our long-term focus towards building out an industry-leading global products and platforms player that delivers significant value for all our stakeholders. Finally, we extend our sincere gratitude to our employees, customers, partners and shareholders for their continued support and contribution to this success. With that, I will close and I look-forward to an engaging Q&A. Over to you, Ashwi.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles the first question is from the line of Vimal Jamnandas Goel from Alchemi Capital Management. Please go-ahead.
Vimal Gohil
Yeah. Thank you so much and congrats on a good quarter. Firstly, just wanted to clarify, the acquisitions that we reported this quarter will be — will come through in the 4th-quarter into our financials. Is my understanding correct? Thank you.
Ashish Rai
Favorable. Yeah, that’s correct. Okay. So, sir, just wanted to get a sense as to despite acquisitions, are we keeping our guidance for the full-year only on organic terms? We’ve not included this acquisition into our guidance as of now, right? Yeah, we’ve not included it, but honestly, we’ll close it sometime in Q4 and I do not really expect that to really move the needle.
Vimal Gohil
Understood. Understood. And Ashish, good to see TIG firing this quarter. I just wanted to check on how have the incremental cash flows been on this name this time around. Are we seeing prudent signs of improving cash flows from this area of from the incremental deals that we are winning? And lastly on the banking side, what is the — what is the initial progress that we’ve seen in the US because I do remember last quarter we had commented that US is expected to do extremely well from FY ’26 onwards.
Ashish Rai
Yeah, okay. Vimal, thanks for the question. So look, TIG, and I’ve sort of stated that in the previous earnings call, know, Sanjay Bali and I and we’ve sort of deliberately slowed down the growth in TIG to focus on the economics, right? Our transit segment continued to grow strongly. Data center segment continued to grow strongly and we slowed down the smart cities business to recalibrate it for better economics. We did that over the, let’s say, the first couple of quarters of the year and then we said we signed on a new sort of significant transaction, which was Fund, which was set-up in exactly the way that we wanted to take on new deals. And I think so-far from a — from an overall configuration standpoint, economic standpoint, cash-flow standpoint, I think we are much, much better set-up and it’s exactly how we want it. So TIG is, yes, because now all the segments of TIG are back to growth, TIG is back into strong growth and it will accelerate into Q4. So for the full-year, TIG would go reasonably strongly. The overall cash-flow side, we believe we have a handle on. I think the — so we tend to pick-up on cash flows and collections as we get into the second-half of the year. So I’m fairly confident by the time we get to March 31st, I think the picture would be reasonably strong both the growth number as well as the cash-flow and anything else that we’ll look at. On the banking side, sorry, Vimal, can you repeat your question on the banking side?
Vimal Gohil
Yeah. Banking side, Ashish, I wanted your comments on what’s happening in the US.
Ashish Rai
We were very confident last quarter any progress that we’ve made. So look, bank, in the US, we’ve actually made significant progress on the banking side. Due to the way we really count some of the IP-led revenues where revenue is coming out of, for example, Singapore entity, some of the US revenue that has resulted gets counted probably in the APAC side and we will figure out what is the — what is the best way to configure it properly. But if you look at all the business that’s now coming in from the US clients, I think we are — we are into the double-digits or very close to it as overall share of the pie, right? So we made strong progress with a very large fintech partner in US. Doing a lot of work with them. We made strong progress on the payments business in the US our transit business is again accelerating in the US and Americas in general. So I think overall, the share of revenue from US science is now up to double-digits. So I think this year will probably grow between 70% and 80%, I think from that geography. We will work-in the next year-on what is the best way to give total transparency in the business in the US because of the nature of our product business. We typically tend to license from where the IP resides and I need to see that this comes across correctly, right? But I think the business is very strong. The channel is built-out in US, we are hiring more sales guys, but otherwise the channel is fully built-out, the partnerships are built-out. This year, the focus will be on building out a similar structure and setup in Europe so that by the time we get to the close of FY ’26, I think we are getting to both Europe and US being north of 10% of the revenue shares. Thanks. Thanks for that. Just one clarification again on TIG. So as of now, as we speak, the orders in the pipeline for smart cities, is the only one which is which is pending, right? There are no other major smart city projects that are pending or rather they are going on. Yeah, no. So large in terms of the new large ones that we picked-up, we said we will be very careful and we said we will — we will consciously go about building the business. So that is the only kind of a large transformational deal that we picked-up. There is obviously a lot of sort of supplemental work that goes on the existing projects in that business. But amongst the new deals we picked-up this year, that we only won. And we will still be very careful in and be very, very methodical when it comes to selecting new bids if we take more in that segment. Sure. It’s encouraging — the commentary is encouraging on the cash-flow side. Thank you so much, Ashish, and all the very best. Thanks so much.
Operator
Thank you. Participant who wishes to ask a question may press star. The next question is from the line of Anmul Gar from DAM Capital. Please go-ahead.
Anmol Garg
Yeah, hi. Hi, thanks for the opportunity. A couple of things. Firstly, just continuing with the Vimal’s question earlier, just wanted to understand that how has been our OCF in this particular quarter since our unbilled revenues and receivables were relatively higher in the, so we have seen some bit of negative cash-flow in, but how has it been looking like in this quarter?
Ashish Rai
Yeah. So on the cash-flow,, this quarter was pretty good. So typically, our business we accelerate into the second-half and given the nature of the business, a lot of deliveries get closed out as you get into sort of the tail-end of Q3 or into Q4. So I believe we will end-up in a good shape as we finish the year and so-far Q3 has been very promising.
Anmol Garg
Right. Yeah, thanks, Ashish. And secondly, if you can indicate what would — is there any target of receivable days that we have in our mind going-forward in FY ’26 and ’27 that this is the level that we want to maintain at?
Ashish Rai
Yes. So Anmal, FY ’26, ’27, look, a lot of it depends on the configuration of the business as we go in, right? So I think the way to look at it at the current moment is this. We would roughly say half-and-half between PIG and banking as we grow. But from 1/4 to the next, we may sort of calibrate the growth, put the pedal down on one of the segments and sort of go up on the other one. With the current configuration of business and let’s say you were growing at 30% into ’26 and ’27 and I’m certainly not guiding to it, we will guide a firm guide at the end-of-the financial year, but let’s say hypothetically, if that’s what you were doing, I would say 100 odd days is where the sort of midpoint of the range lies depending on project delis and all. Now from time-to-time that it may actually go up to, 110, 115 and I think there may be times it drops below 100. But I think that is where roughly the midpoint lies based on the current configuration of the business.
Anmol Garg
Right, understood. Understood. Just one clarification on our order book, which has been very, very strong in this quarter. So the order book, does it contain any orders from or this is all organic in the business?
Ashish Rai
And no, this is purely organic at the moment. I think you’re right, the order book buildup was — so typically what happens to us from 1/4 to the next is we roughly are at a pace of consuming about INR250-odd crores to INR260 crores from the order book and we add, let’s say, between INR250 crore and INR300 crores. So the net addition ends up being INR30 crores. This quarter it was a little bit exceptional because of some very strong wins on both sides of the business. I would not say that would happen every quarter, but right now it is fairly strong.
Anmol Garg
Thanks. And just one more if I can. In the — particularly on the banking segment, so if we look at the business ex of REI, if we remove the two quarters of REI incremental revenues, then the growth looks a bit tepid for this quarter on a Y-on-Y basis. Just wanted to understand that based on the current contracts what we have, do we see banking growth organically to be faster than TIG for next year?
Aashvi Shah
So I would contest your tepid and the definition of tepid. I don’t think Aria is that material to the overall banking growth on a standalone basis. Aria has been the cause of acceleration to a lot of other banking product business. So for example, a lot of our — we become one of the most competitive players in the transaction banking space, thanks to being the sort of leading product with a very strong AI offering inside the transaction banking stack, right? And same story goes on the lending and all, right? But I would not say on a standalone basis, REI is really skewing the growth numbers. I think it is really helping the growth of all the banking products as a whole, but still the revenue kind of lies in transaction banking and lending and all the subsequent products, right? Yeah, I think that’s how I would read the banking growth. Now going into the subsequent years, I feel right now, the demand pipeline that we see on transaction banking, the demand pipeline that we see on lending is fairly strong as it is. And our win rates at least in the Asian markets, I don’t think we have a peer in terms of just the win rates that we are clocking at the moment. So we will continue to deliver strong organic growth into the business. There was an additional element to your question,, can you go again?
Anmol Garg
Yes. So I was just asking that with respect to TIG, should we expect banking growth to be faster than TIG?
Ashish Rai
Yeah. So I would not know that. Look, I think like I was saying in the response to the previous question, the way to look at it is the demand environment remains exceptionally strong is the strongest we’ve seen in a long while for about both the segments, right? So whether it’s transaction banking, I think there is a lot of deals in the market, whether it’s lending, there is a fair amount of deals in the market, the whole AI stack, we are just building out into it. Same thing on the TIG side, the demand on the transient side is exceptional. I think the closed-loop to open-loop transformations across the world will go on for many, many years. Data center demand is very, very-high. So the demand-side of the equation is really strongly loaded at the moment, right? So the growth depends on how much do you want to grow into that demand in terms of scaling up your capacity, how much of it can you take on safely while keeping your delivery reputation intact, while keeping your cash flows in shape, right? So what we will do going into the next few years is we will be very, very careful in how much we grow, how — and we grow in a way that we can keep a stellar reputation for delivery, which is what makes Orient different from anyone else we compete with. We keep the economics intact, we keep the cash flows in shape. Of course, at a 35% 40% growth, they will keep skewing from time-to-time. But we will keep all those in growth and then we will calibrate how much we want to grow in each segment, right? So I think it’s too — it’s very hard to comment on how much it would be. I think what we would say is on an average will grow very strongly and both the segments will contribute to that growth fairly strongly. But from 1/4 to the next, you will see like for example, TIG was growing very, very strongly four quarters back, five quarters back, we slowed it down deliberately. Banking was growing very slowly four, five quarters back because we are building the products out, then we accelerated that this year. We slowed TIG down, now TIG is accelerating, we may slow-down something else. So I think we will keep — the key equation here is not the demand, it is our judgment on how much we can grow safely. And second, our ability to capacitize against the demand, which takes time for you to ramp-up capacity and all right. So I think that’s the way I would look at it. I would say on the net, both segments will continue to deliver fairly strong growth going into the next few years.
Anmol Garg
Sure,. This is very helpful. Thank you and all the best and also congratulations for a good quarter. Thanks.
Ashish Rai
Thanks a lot.
Operator
Thank you. Participants who wishes to ask a question may press star and one now. The next question is from the line of Dharshni from SI Investments. Please go-ahead.
Dharshini Kumar
Hi, thank you for this opportunity. I have two questions. My first question is, do you see any effect of deep-seek AI on our business?
Ashish Rai
So that’s me, that’s the only question.
Dharshini Kumar
Yes, I have another one that in one of the.
Ashish Rai
I thought you were saying multiple questions. That’s why I’ll tackle this one first. Okay. Look, so deep, you know the entire world is processing what comes out-of-the deep, right? And we probably run the most advanced AI explainability lab in the country in Asia, probably maybe one of the most advanced ones across the world. We’ve been looking very closely at Deep since B3 came out three, four weeks back. We’ve obviously look very closely at R1. It is, I think it is a bit of a, you know, it sort of turns the whole scaling hypothesis on his head and I know the entire world is sort of thinking through the implications of that, and what it means on the net probably is that the frontier models are closer than you think they are. The bar is probably lower than what everyone had, you believe for some time, right, which does open up the possibility of smaller labs like us coming up with a much more, much more sort of advanced offerings. And we are probably one of the strongest research teams when it comes to AI explainability at the moment. We are making a lot of investments around making our application AI native. We are going to really accelerate investments into specialized language models that tackle the specific domains that we are in. We still — we are still net convinced that the value capture is going to happen on the specialized models and it’s a lot easier for you to — it’s a lot easier for you to get to frontier model capability on the specialized domain, right? So I think that is where we are going at the moment. Obviously, there is a lot of impact to where a smaller specialized lab like us can invest and we’ll continue to do that, right? I think it does not change the original value capture formula that we had, which is one, make our application stacks AI native and lead the world in terms of AI enabling the enterprise application stack. I’m convinced there is a lot of value capture that will happen there. Second, productize the — the sort of AI stack that we go into making our applications and work with other fintech vendors on that productize stack. Third, invest on enterprise AI, right? So those levers remain and then we process where we can get to around the specialized language models and we started looking at that, right? So that’s one-side of the impact. The second side of the impact that much talked about is the data center space. I honestly don’t think that’s a material impact for us because one, for us, most of the design-and-build happens in India. I don’t think a lot of Indian data center space requirement was coming out of AI compute. You of course, hear of a few GPU as a service models and all that stuff, but even they were not fully servicing Indian demand. So a lot of the data center demand is coming out-of-the latent demand for compute and latent demand for storage that exists in India as a — as a nation. So I don’t think that goes away. I don’t think investments there will slow-down and we are a fairly small player overall. So I think we’ll continue to grow on that side of the business. So that’s basically where I am in terms of assessment of impact on both sides of the business. I — unless you meant something else, I think that’s the way we’re thinking about it.
Dharshini Kumar
No, this is what my question was. Thank you for the response. My second question is regarding the banking business. In one of the previous calls, you had mentioned that the banking business shall — is expected to grow by around 50% this year. And this quarter the growth is 41%, like will we be able to catch-up in the next quarter so that we end the year with a 50% growth?
Ashish Rai
I think we will probably go a little bit more, but honestly, I think I — we grew in one from 1/4 to the next, we may get to 50%, but I think what I was saying is we’ll land up something between 40% and 50%. I think that’s where we’ll land up. The challenge on the banking side that we are facing right now is essentially being able to deliver the project fast enough. And there is a ramp-up of capacity that has happened, but it’s a lot more complex in the product business to ramp-up capacity to deliver than if you were a pure-play services business, right? So I think the challenge is delivery capacity to some extent as we — and the reason we made, for example, an acquisition like is also to help us ramp-up the delivery capacity in Europe, right, because from a product standpoint, from IP standpoint, we are there, but we said how do we really build-out capacity in Europe, how do we build our capacity in US. So we are working very hard at that. I think we’ve got a very, very strong model to build that capacity, but still the constraint remains how fast can you get the projects delivered?
Dharshini Kumar
Not yet, noted. Yeah, that answers my question. Thank you so much and all the best.
Ashish Rai
Thank you.
Operator
Thank you. Participants, you may press star and one to ask a question now. The next question is from the line of Shikhar Mundra from Commercial Limited. Please go-ahead.
Shikhar Mundra
Hi, hi, congrats on a good set of numbers. So just wanted to understand our plans for Europe, like for next couple of years, where do we see — I mean, do we see our revenues from Europe and how big can we scale this acquisition of Linux 6?
Ashish Rai
Okay. Hi,. So Europe, the plan is the following. The two segments which will expand into Europe initially are banking and transit. Our transit, we are increasingly competing on deals in Europe. We expect to be able to break-in to a few markets that way. We are — we are pursuing the partnership strategy that we have and then we already started doing some work-in the UK that way and we hope that to expand. So that is the transit strategy, build-out the channel to compete on deals in Europe as well as build-out on the partnerships and expand. And we already started expanding that in a small way this year. That will only grow. The second part of the equation is banking. For banking, the initial target is so banking is the following. One is transaction banking, we want to start selectively competing in our deals in Europe. We are already making some progress. We’ve built-out a sales team there and we have started looking at the initial deals. The second is to go in partnership with a large fintech vendor on the lending side where we are integrating our front-end with their back-end and we will go and sort of do a joint front-to-back play on the lending side, especially for the large banks in Europe. The third lever is, which is a very strong player in the capital market side. They have relationship with a number of large banks and a very, very-high quality team with presence across France, across Nordics, across UK and we’re leveraging that team to start sort of expanding and seeing how once we can increase on the capital market side with a large global capability that we have offshore as well as expand those relationships on the banking side. The fourth lever, although very, very nascent that we are pursuing is how do we collaborate with some of the European governments and government agencies on the AI side. So we’ve been sort of talking to a few regulators. We have a first-rate offering on AI explainability. Europe has a very strong regulatory framework around AI, which is very different from, let’s say, a place like US or India, right? And that really sets the market up very nicely for us because we really have the framework in-place to see that the models that you build-up are fully explainable to make sure there is a compliance to regulation. So a regime where there is a strong AI regulation works favorably for us and we are sort of exploring that with a couple of governments and regulators in that part as to how we can enable that. So those are the levers for us to expand banking and transit. We feel very good about both of them expanding into Europe going into next year.
Shikhar Mundra
Thank you. Thank you. That was very helpful. And so are we in a position to give a guidance for next year and
Ashish Rai
All the business for Europe for the complete business
Shikhar Mundra
, for the complete business.
Ashish Rai
So for the complete business, I’ll come back to you in May when we report the full-year results and then we will guide.
Shikhar Mundra
Got it. Perfect. Thank you.
Operator
Thank you. Thank you. The next question is from the line of Deepak Poddar from Sapphire Capital. Please go-ahead.
Deepak Poddar
Yeah, hi. Thank you very much. Sir, just wanted to understand this year what sort of outlook we have for FY ’25 in terms of growth and margins?
Ashish Rai
Hey, Deepak, so the — we’ve guided to a growth of higher than 30% and EBITDA between 20% and ’22 and PAT between 15% and 16%.
Deepak Poddar
Okay, okay. Fair enough, fair. And in terms of, I mean, how much percentage of business currently is coming from exports market?
Ashish Rai
So the split roughly for us is 60% India, 30% Asia ex-India and 10% Americas roughly. And 10% is USA. Yeah, I mean slightly less than 10%. Okay. So you see any risk in this international pie, I mean the USA pie or Asia ex-India pie? I mean, we only see opportunities, it’s too small to really worry about the risk. I think Asia, the demand environment is very strong. So 90% of our business is Asia or India. I really don’t see any red flags anywhere. US, I hear about the red flags as much as you or anyone else hears about the red flags. But for us, honestly, I think the risk is fairly low because, one, we are small. Second, we’ve got large opportunities in front of us. Third, we are not that resource incentive like the IT services firms who need a lot of Visas and stuff like that, right? We are a very product-oriented, IP-oriented business. So we don’t really think there is a lot of impact. I mean, to the extent that there is an impact, we will navigate around it. But right now, we see a significant opportunity for our transit payment stack in the US market. We, of course, we’ve rolled-out too many cities in California. There are other US cities — other US states rather which are thinking about frameworks to move closed-loop to open-loop. So we are very excited about the possibility there. And on the banking side, we again — we work on the payment space, we work-in the lending space. It’s largely product work where, you know I really don’t see why there should be a risk there.
Deepak Poddar
Okay. And you mentioned that there can be some kind of impact in US, right? So what sort of impact we see? I mean what can be the potential impact, I mean if at all, I mean that can come. I mean —
Ashish Rai
So I did not say that I think there will be an impact. What I’m saying is if there is one, we will easily navigate around it, right? But I don’t really see what that impact could be. If I was to predict how US will behave for us in the next year, I would say will grow at a reasonably strong rate next year in the US.
Deepak Poddar
Okay, okay, fair enough. Okay. That’s very clear.
Ashish Rai
But I don’t know what I don’t know, right? So fair enough. So if something comes in, I think we are we — if the business is wide enough to be able to navigate it.
Deepak Poddar
Okay. Okay. Understood. Fair enough. Okay. Yeah, that would be it from my side. All the best to you. Thank you.
Ashish Rai
Thank you.
Operator
Thank you. The next question is from the line of Mohan, an Individual Investor. Please go-ahead.
Raj Mohan
Yeah. Thank you for the opportunity. Congratulations on yet another robust quarter, Ashish. We have talked about being in the top three in the products we cater to by 2030, for which as you have indicated, there has to be an inflection in the medium-term. Do you think as you look into the developments within each of the areas, there is an outside chance that we hit our first inflection in the next three years, like opportunities in the closed-loop to open-loop transition where we are making some serious inroads in the most developed zones, data centers, then this huge AI opportunity which stands better attainable with REIA.
Ashish Rai
Yeah. So hey,, thanks for that. So first, if we just keep growing at 30-odd percent for the next five, six years, we grow up four or five times, right? So I think that itself, it would not be a growth that we will be, let’s say, disappointed by. On the ability to get to the top three in each of the players, each of the segments we are in, I think that’s the core of Orienthro’s DNA. We come into work every day because the desire is to build-out a product that’s superior to everything else in the market, right? It doesn’t matter which segment of Orient you’re talking about. When we go and build something, we want to build the most superior offering in the market and we will be completely uncompromising, we will be totally relentless about it, right? So if we don’t get there today, we’ll get there tomorrow, if we don’t get there tomorrow, we’ll get there the day-after, we will not stop. So I think that is the sort of core ethos of how we operate. I would be very surprised if we did not that hit that inflection point on some of our segments in the next three years. I think just to use it in the timeframes that you gave it. On the transaction banking stack, we are increasingly optimistic. We probably have the most modern stack in the market. We are competing very, very well. I don’t think there is another play in the market with the win rates that we have. On the commercial lending stack, I believe we have the deepest stack in the market. And it’s not just me. I mean these are chartist leaders quadrant products, whether it’s corporate loan origination, whether it’s collateral management, the banking book, whether it’s limit management, the banking book now LMS, right? So when we build — we are building with the — with the intent, with the ambition of building out the top products in the world, of course, you never know when you get to the top three, but as far as building — building the product is concerned, we are very confident we are building out really competitive products, right? I would be — I would be very surprised if for some of the products, we really did not get to the top. I think the core R&D ethos that we have, if you look at it, that’s not easy to find in this part of the world. On the transit side, if you look at it, we are the only firm in India to design, build our own EMV certified car readers, right? I mean it’s hard R&D. It takes like a few years to do it, no one else does it, why do we go and do it? On AI extainability, we are the only firm in India to publish research papers, build-out an stack. I don’t think anybody one is doing anything close to that level of deep R&D to build-out an inference level stack that we built-out, right? This is not easy to do. It is not cheap to do. We sacrifice a lot of ours. We sacrifice a lot of dollars to go and build these products out. And we feel confident if we carry-on how we carry-on with the same determination, with the same effort, with the same common sense economics, we will get to where we plan to get to, right? I have no doubt about it.
Raj Mohan
Yeah. That’s a superb answer as usual, Ashish. Second, on Aria AI, you had indicated to a couple of quarters of integration and then being in a better position to assess potential for such integrated product solutions offerings. You have indicated to explainable AI in high-stakes industries. How have the customer dispositions changed on your integrated offerings in the enterprise AI space through probably the lens of stuff like explainable AI? AI would like some color in terms of new client wins or quicker expansion of product rollouts in existing clients, are we able to be at the forefront of such a dynamic and paced industry?
Ashish Rai
Yeah. Yeah, good question. So look, I would sort of split it into two different parts. I will segregate the enterprise AI or other AI enablement of the application from the explainable AI offering. On the AI enablement of the stack, I think we’ve made tremendous progress in the next couple of quarters. And I think the best example of that is the transaction banking stack. We probably have one won in the last four, five quarters, I would say 60% plus of the deals we competed in. And I think our 60% deals that we competed in that got decided over the last five quarters, right? I think our win rates are exceptional. I think the two wins that I talked about in Saudi Arabia, the win in South Asia, the two large public sector banks in India, you know, including State Bank of India that you talked about. And a lot of these wins are powered by the AI stack that we’ve integrated in with the enterprise offering and that’s the reason why our win rates are so high, right? So I think that is already beginning to show a significant impact. We will actually have a very large bank in India go-live with it over the next couple of months with one of these sort of AI-powered offerings and I think that should give it a further. So I think those things are going very, very well. On the explorable AI side, I think it’s still a fairly less matured feel. I think there is a lot more sort of, let’s say, maturity regulatory push that needs to come in the space. We have plans around how we plan to expand in that space. We have plans around how we plan to bring that into our own enterprise AI stack as well as focus it on regulated industries where it makes sense. But I think the — the space, I would say it’s still watch this space and see how that evolves over the next couple of quarters. I feel-good about our chances, but time will tell. Overall, how do we feel about competing in a space that is changing so? I think all of us saw what a small lab in China achieved. I think the goalposts in the space have changed. I think there is a lot more. The frontier is a lot closer than people said it is. And our capabilities are a lot deeper than people think it is. I think we will achieve very, very strong reserves in the space. We still believe when it comes to reasoning, especially, going down domain-specific highly focused reasoning models is probably the faster way to reach the frontier than trying to go deep seek deep-seek style generalized reasoning model. But I reserve the right to change my opinion on that in the next three months, but I think that’s where we’re going. I think we feel-good about where we are and I think we’ve got one of the most advanced AI labs at least in this part of the world and I feel-good about our channels.
Raj Mohan
Great. One final question, deals where you sort of tie-up with majors like Finastra, FIS has joint propositions, do you see these products could over-time be increasingly in proportion done by Orient Pro and be candidates for huge growth as to trigger that inflection in transaction banking or corporate lending? Or would the continue to maintain their share of the contract and you could use these references for other contracts wherein you do the whole contract or a large part of the contract yourselves.
Ashish Rai
So look, we are — we are strong believers in the kind of open ecosys system approach to how solutions get delivered to the clients. I — and the sum of the parts to the client is a lot bigger than individual components, whether it’s coming from our partners. We are very close to most of the top fintech players in the industry today, whether that’s, whether it’s Burex, whether someone else. We are increasingly finding more-and-more win-win propositions with each of these partners. I think these relationships will only get deeper. It’s not a zero-sum game. It’s not that we win, they lose, they win, we lose. I think collectively, we just deliver a lot more value. As we do it, of course, these are large organizations and we do start doing a lot more around their products as well, especially in terms of filling up gaps and all as we’ve done with multiple of those partners, right? So I think it’s generally a growing pie. We are a fairly a small player in a giant industry. So the headroom for growth for us is enormous. As long as we stay focused on finding these joint win-win propositions and deliver our end-of-the bargain, I think we’ll keep growing these on. I mean, how much and what it is, I think I don’t think this is the time to sort of worry about it.
Raj Mohan
Thank you very much. You seem to have set a unique standard to catapult the company post pivoting, Ashish. My really best wishes for you to achieve your unique objectives, which will make India. Thank you.
Operator
Thank you. The next question is from the line of Vivek Gotham from GS Investments. Please go-ahead.
Vivek Gautam
Sir, congratulations for giving yet another consistent set of performance and another quarter. Keep up the good work. So if you can just highlight what have been the changes you have been able to bring about in the last two, three years, you have joined the company from abroad and how has been able to attract the talent quickly from the international level and international organizations like and so what is the future looking like? And last question. Second question was about the receivables concerns because of what business with government is also increasing. Thank you.
Ashish Rai
Thank you. Hey, Vivek, hi. Thanks. I mean the first question is really broad, right? So I mean we might as well end the call on this. This if I get into details on this. But I think what I would say is, since we pivoted the firm four years back and there’s a lot of commentary that I have given including Investor and all that stuff that are out on YouTube and everywhere else, one could run-through it. The goal is to build-out a global product global platforms player centered around building new IP, centered around being products that can compete across the globe. We believe that the time to sort of — also the maturity curve of Indian IT, I think the time to sort of go towards product had come, the margins of services business shrinking. So we went down and selected a few select segments and we said, okay, in these segments, we see demand runways which are long out, we will invest, we will build-out IT. And that’s what we’ve been at. I think the journey for us has been — has been a bit unique in how we approached it. It has encouraged, it has attracted a lot of talent from top global firms to come and join us. And I think that is — that way we’ve been a bit lucky that we were — we were a bit unique in terms of our models and we were a bit lucky that we were more ambitious than probably some of the others and that helped us to draw in talent from global fintech firms from the, from the FISS, from the, from business like that. Some of it is also because we were very deliberate in the talent that we wanted to hire. I think we will continue to sort of just pursue do more of what we plan to do. Our vision 2030 is fairly clear, it’s fairly detailed. Externally, it’s a set of qualitative objectives that we published internally, it’s a set of hardcore quantitative objectives that we’re chasing. So-far, we are actually delivering ahead of those objectives and the entire management team in Orienthrow, a lot of senior leaders in Orientro are tied to that Vision 2030 objective and fully committed to it. And every day, we continue to attract more-and-more you know, very, very talented people from the industry to come and join us in our mission. I think the time for the Indian industry to pivot from services away into products has come. And to the extent that Orient Pro can help catalyze that change, we are delighted to be able to do that and we’ll continue to sort of single-mindedly pursue the objective that we set for us. And I think that is the right outcome for Orient Pro for all the staff of Orient Pro and for the shareholders overall in terms of the return on capital, etc., that we can drive over the period, right? So I think the price — the size of the price is enormous. So that’s what it is, right, and in terms of what we’re trying to do. Coming to the more mundane topics of receivables, look, I don’t think it’s — I know it sort of comes up every year. We always have a first-half of the year where we will get a little bit negative cash. We’ll always have a second-half of the year will step-up collections in April. It will end-up in the in the 100-odd range. I don’t think we will be as efficient as, let’s say, a pure IT services player who was placing Man R in terms of how efficiently you can — you can collect. So our DSOs will always be a little bit higher just to the sheer nature of product delivery, but that also allows our margins to be higher-than-average services vendors that also allows our sort of growth rates to be higher, right? So I think the way I would position it is, it’s very hard to drive a mature company economic with a, 35%, 40% growth rate, right? Because when you are actually building out product setup at a furious pace, when you are starting so many new projects, when you are really expanding, sending so many bills out, you will always have a very large receivable thing. I mean, you are growing 35% and Q4 is the largest quarter, right? I mean it would be big. But on the net, our model is so enormously profitable and we are capturing such a large-value and bulk of the value that Orientro creates actually does not show-up on any P&L statement. The value of Orient Pro is not in the P&L that you see last year, the value of Orient Pro is the absolute cutting-edge IP that will pay us for the next 10 years, whether it’s the absolute cutting-edge open-loop stack where we have the most integrated end-to-end offering in the transit payment space, whether it’s transaction banking stack where we’ve got the most modern transaction banking software in the world today, whether it’s the corporate loan origination software, which is the number-one theory payer in Asia, right, the value is not in the past P&L, the value is in the future. And we will continue to build these products. We expense every single cent of our R&D, right, so which is probably at INR110 crore INR115 crores right now. Right, that is a huge amount of investment in the future. So I would say we will even today with the current P&L, we’re probably in the top 5% of the industry in terms of growth. Actually, I don’t know any other tech player who has grown 30% last four years in a row. I think we are top 5% industry on margins, right? I don’t know many players who do north of 20% EBITDA. And despite that, the value is actually not in those numbers, the value is in the future value of the IP that we’re building out, right? Is it terminal value the IP that we’re building out, right? So I think that is the way I would look at it. Within that, I would say receivables and all will go up-and-down, right, but that is for us to manage. Roughly by and large, we will keep the DSOs at about 100-odd base give or take 10%, right? And I think that’s the way to look at it.
Vivek Gautam
Sir, a few words about the impact of this Chinese deep speak on our data — on our sector and AI and on us in India and our data center capabilities, sir. What could be the impact positive, negative?
Ashish Rai
Sorry, the line is not very clear. With the impact of deep seek on data centers?
Vivek Gautam
Yeah. Impact of this new development sir all-around the world, the concern is that chips companies are falling around the world due to this new Chinese startup development of the new chip sir.
Ashish Rai
Yeah. The way I would look at it is this. I would say the impact of what deep Seek means in terms of a less resource intensive AI build-out going out into the future at a global level. If that is true, that’s probably a significant impact when it comes to data center capacity. But I would say the jury is out on that one. And you’ve not completely debunk what you would call the scaling hypothesis. What you’ve sort of proven is you can get very close to a frontier model using algorithmic techniques instead of blind scaling, right? It doesn’t mean the scaling up shop. Right. What does it mean for us? I think it’s a completely different reality. So for us, the data center — so that comment was on the global level. For us, the data center business is very India-centric. India demand in the data center space, I don’t believe is largely driven by AI compute at the moment. I think it’s driven by the general demand for compute, the general demand for storage. There is a slight AI element to it, but I don’t think it really materially changes the reality of the data center space and we don’t really build data centers. We don’t really own our own data centers. We are a design-and-build player. We see enough demand in the pipeline right now to keep on-going into that space. I would not believe there is a — there is a huge impact where when it comes to the Indian demand, when it comes to data centers, there would be an impact on probably the GPU as a service players and all that stuff, but that again like I said, wait a couple of quarters to see the real impact. And overall, yeah, I mean that’s what I see it. I think this is a space where new facts will emerge every few months and you have to maneuver it. But India growth in data center capacity, I believe is a long secular story. I don’t think that really gets impacted much by AI compute.
Vivek Gautam
Thank you, sir. Give up the good work, sir. Thank you.
Ashish Rai
Thank you.
Operator
Thank you. The next question is from the line of Lakshay Agarwal from Growth Spear Ventures LLP. Please go-ahead.
Lakshay Agarwal
Hello, sir. Thank you for taking my question. So I have a broad question that in our TIG segment like we have the data center build service. So I want to understand that how much of a percentage of revenue it is as of now, understanding that it would be a small share, but still. And what exactly are we providing here? Is it the design service or also we pick-up the build contract, the EPC contract? And secondly, how does the margin profile look for these different segments.
Ashish Rai
Okay. So look, data center is roughly a third of TIG. TIG is roughly 45% of the overall enterprise, right? So I think that is a rough number. What do we do in the data center space? We are largely designed and built. When it comes to design, we’ve got one of the most — one of the most capable data center design teams in the country. We work on some very, very complex projects with a large number of players. And on the build — the design-and-build side, we work with a couple of prominent strategic partners, Web, Iron Mountain being the main one right very, very closely in terms of not only designing the data centers, but also program managing the build of those data centers, right? So I think that’s what we do. From the economic standpoint, the business operates at 5 or 6 points below the enterprise margin at the moment and it’s growing roughly between 30% and 40% overall, right? So those are the sort of rough numbers.
Lakshay Agarwal
Okay. Thank you, sir. So a follow-up question on this. So majorly we focus only on Indian clients or also we look into abroad clients. And secondly, in terms of the design service which we provide, so if there is a contract for a 1 megawatt data center build, so how much of a percentage would it constitute for the design and consultancy part, which is our segment — which is our share?
Ashish Rai
Yeah. So look, we have slowly started expanding globally into a few markets and mostly emerging markets and I think that’s still a very, very small — it’s a non-material slice of the revenue at the moment, but we started slowly expanding into it. So as we go to the next year, you may see some more announcements in that space. Design — the way the pie develops is, so we obviously don’t do any work on the EPC side and all that stuff, right? So we — design is sort of roughly single-digits when it — of the overall pie and when we do a design-and-build, then you are probably capturing close to 40% to 50% of the pie, right? So it depends on the scale of the project design by itself, design by itself is extremely high-margin work, but it tends to be a very small share of the pie.
Lakshay Agarwal
Okay. Thank you, sir. That was helpful. And a last question that currently the DC capacity which we have right now in India is approx 1.2 gigawatts and in the next two to three years, we are planning to scale it up to three to four gigawatts. But with the recent development of Reliance mentioning that it would be entering like it would be making its own three gigawatt setup. So are we seeing any services which we would be able to provide over here and could benefit out of it or how are we focusing ourselves over here?
Ashish Rai
Yeah. Look, I think the way we look at the DC side is it’s not really a demand issue for us, it’s more how much we want to do and what capacity we have, right? So I would say there is a lot of — there’s a lot of action in the DC space. There is a lot of investment proposals from small-business to large business to 2D players as well. There is a lot of business plans in-place. We really cannot go for every one of them or most of them. So we — we sort of work with a couple of strategic partners where we work very closely with them right from inception and do the whole chain of work and we tend to focus on very selective, very complex projects which are high-margin where we can add a lot of value, right? Beyond that, obviously, there’s a lot more happening in the space, but do I really want a finger in every pie? Probably not.
Lakshay Agarwal
Okay. Thank you so much, sir.
Ashish Rai
Thank you.
Operator
Thank you. Ladies and gentlemen, this was the last question for today. I would now like to hand the conference over to Mr Ashish Rai for closing comments.
Ashish Rai
Thanks,. Thank you everyone for joining the call. Hopefully, this has given you some flavor of how the quarter has panned out and our plans for the future. Overall, we continue to focus single-mindedly on our ambition of building out the global enterprise tech player, the global products and platform player that we set-out to build-out, right? The demand environment remains very good. We are scaling up delivery capacity to build into the demand. The order book is in a very, very strong position. So I feel very good about how we will finish this year and how we’ll go on and grow into the subsequent years. I’ll come back to you next quarter with more on this. Till then, thank you for joining the call. Thanks, and I’ll see you again.
Operator
Thank you. On behalf of Orientra Solutions Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.