CL Educate Ltd (NSE: CLEDUCATE) Q3 2025 Earnings Call dated Feb. 05, 2025
Corporate Participants:
Arjun Wadhwa — Chief Financial Officer
Satya Narayanan R — Chairman & Executive Director
Gautam Puri — Vice Chairman & Managing Director
Presentation:
Arjun Wadhwa — Chief Financial Officer
Good afternoon ladies and gentlemen I’ll just check once again Satyal Gotham am I audible and visible?
Satya Narayanan R — Chairman & Executive Director
Yes you are audible you are visible please confirm that for us also.
Arjun Wadhwa — Chief Financial Officer
It’s good to go, Satya.
Gautam Puri — Vice Chairman & Managing Director
Good afternoon,. Satya. Good afternoon, everyone.
Arjun Wadhwa — Chief Financial Officer
Good afternoon. You’re both loud and clear. It’s 3:31 and I’m going to kick-off the session. Ladies and gentlemen, welcome to CL Educate Limited’s Q3 FY ’25 Analyst Call. My name is Arjun Wadhwa. I’m the CFO of CL Educate, and I’ll be your host today. Welcome once again to our metaverse platform called, which we have been using for more than three years now for our analyst calls. This call as always will be recorded, transcribed and made available in the Investor zone on our website within the next 24 to 48 hours. Should you have any questions during this call, please type them out in the chat box in the bottom right-hand corner of your screen. We will take them all-up together towards the end-of-the session. Joining me on this call today is Mr Satin, is our Founder and Chairman; and Mr Gautam Puri, Co-Founder, Vice-Chairman and Managing Director; Gautam takes direct reporting of the business now, including our test prep business. MR. Nikhil Mahajan, who anchors the business is unfortunately unable to make it today as he is in the US. So for today, I will cover the finance and business slides and we’ll take questions on. I will bring Gautam or Satya in for various questions on or any of our new initiatives when necessary. Satya, over to you.
Satya Narayanan R — Chairman & Executive Director
Yeah. Thanks,. Should we move to the slide? Okay. Got it. So good afternoon, everyone. Thank you, Arjun. This is a bit of a change of sequencing. Normally, we do the corporate updates at the end, but this is perhaps not a corporate update, but an update nevertheless. So the first update that I would like to give all of you is that the NSCIT, that acquisition is near completion. We can go to the next slide to see a little bit of a details of that. The SPA has been signed as you might have seen and which also was followed by the formal press releases from both sides. There are a couple of absolute closure events that are pending such as taking over of the Board and such couple of stuff. If any specific questions are there, Arjun will take us through that at the end. We foresee those completing in the next seven to 10 days. And for those of you or for maybe or for all of us, just as a recap of what NSCIT DEX means to our ecosystem. On day-one, it starts with an opening balance of about top-line of INR200 crores and this gives us about 17% EBITDA margin. And we look at this inclusion or integration of NSEIT into CL as a very significant orbit changing event, wherein the TAM, the assessment opportunity in India, the total addressable market is estimated to be about nine crore people and poised to grow to INR18 crores in the next five to seven years. And when we say assessment, any assessment that covers five or six areas, I’ll come to that in a moment. Those are all covered here. So if you look at it, it could be recruitment, it could be promotion, it could be professional certifications, it could be individual certifications, it could be vocational training programs. So all of these add-up to this INR9 crore going to INR18 crore in a large Indian market. And this does not include the interest within the school or within the university semester kinds of assessments, which also are slowly it surely moving towards digital and subsequently they also are likely to move towards being an on-demand examinations. The most valuable thing that comes to us from NSCIT acquisition is the technology backbone. And I do dare say that this has a potential to compete in this space and become an integral part of India’s digital stack public infrastructure, wherein we have already seen the success of elements such as or UPI or Digi locker and so on. So NSCIT DEX, because of its DNA, because of its legacy, because of the scalable technology platforms on which has been built by very, very experienced and thought-leading architects, we are now in position of this. This is one of the biggest business moats in our view, along with the distribution that it has. Today, NSAT has a capability to conduct a population scale examination between whether it’s a 5 lakh or a 25 lakh examination in over 700 districts across the country. And while that being so, the greater possibility that we do see over the next three to five years is where in SCIT can go international. We already have examination conducting experience in the last five years as decks in seven overseas locations in the Middle-East and in South Asia, but this is likely to grow as Indian education grows in stature as India becomes a jobs ready future jobs granting or supplier to the world, there is a greater role that will be played by assessment companies across the globe. So this is a very orbit changing thing. It comes with good financials and our job is now to see how do we take it from where it is to a 3x and a 5x over the coming few years. The final point to make in this and maybe I’ll also follow that up in the subsequent slide is that we have a — we have an exceptionally experienced team. At a future date, we will organize an interface with the leadership that comprises the Head of Business, Operations Head, Technology Head. I’ll cover that in a moment. We can move forward, Arjun. Thank you. One of the important things that we have worked even while this transaction was getting underway was to see how we can keep the large institutional strength of NSCIT in the form of a very, very-high caliber, hugely seasoned, respected independent Board members. And I’m very happy to share with you the following four names who have in-principle agreed to come on-board. So in a week from now when Arjun presides over the entire changeover process. We will have a former Board member of NSC, Mr Yathri joining the Board of NSE IT index; Mr Krishna Kumar, who is a very well-respected public markets investor for a couple of decades. His last assignment was as the CIO at Sundaram Asset Management. KK is joining us on the Board. The third and a very, very wonderful name to associate is Mr Ashu, very highly respected, highly-regarded in the space of public policy, government schemes and so on. His last assignment he retired as the Secretary of Higher Education and Social Justice and IAS Officer of 1985 batch and lastly, we also have been able to get Ms Madhumita Ganguli, who is an independent Board member and an HDFC nominee on the CL Board, CL Educate Board, for the last few years, Madhu will be the common board member of — and also the Lady Board member that we need to have on the NSCIT DEX Board. Moving forward, this is the three-member leadership team. Krishnan is the president and CBO he’s been in the system for the last 19 years and also leading the business since 2015. Then we have Dr Paresh, who is a Ph.D in computer Science from IT and a very seasoned veteran who has seen the growth of NSEIT right from the role of our Head of Projects to now becoming the CTO over the past decade or more. And thirdly, we have Chintan Turkey, who is a Bit Spilani graduate and extremely rich experience across a few companies before coming to NSCIT five, six years ago and he heads the entire operations of NSEIT DEX business. Let’s move forward. The second quick update that I want to give you is the launch of Utsav. We have been speaking about it for the last quarter or two. We had a very, very successful launch officially on the 12th of June. In addition to that, we also had our first large event executed and billings have started. Our first event happened on the 7th of — sorry, I should have said January, I’m sorry, I said I think I said 12 June, 12 January and we had our first event on 7th of January. These are the real pictures of an event that we conducted. It was a destination wedding in Jaipur. The boy is of Indian Origin. The girl Repeka is an American girl and this is a destination wedding attended by a few 100 guests and it went off very beautifully. The videos that you were watching as you were coming into the analyst call were the actual videos of — from that wedding. I will pause.
We can go to that slide. The appropriate. Yeah, the next slide is slide is visible. What is the next slide? We’re also happy to announce that the founding members for, we’ve been able to rope into very, very successful and well-known names in the hospitality and food and beverage industry and they join us as founding members and co-promoters more details of these we will be able to share but the event was graced by both Sameer Puri who is a well-known restaurantor in Delhi and Sanjeev Kapoor, the celebrity chef and they will be joining us in taking to the entire range of design, execution, growth and so on. Is this a short video of the launch?
Arjun Wadhwa — Chief Financial Officer
Yes. Yeah. Hi everyone to the stone come experience this amazing yeah thanks I’ll just move back to the presentation one second please yeah sorry my apologies.
Satya Narayanan R — Chairman & Executive Director
Yeah. So that was the brief of the two updates that I had to give you, which were new initiatives which are coming into our fold. I’ll now hand it over to Arjun to move into the financial and business updates.
Arjun Wadhwa — Chief Financial Officer
Thanks, Satya. I’ll just move straight away into how this year is looking for us so-far. As you’re all aware, we’ve grown our revenues about 5% from INR255 crores to INR269 crores. The Ed business is down by about INR8 crores from INR161 crores to INR153 crores, while the business is up by about INR22 crores from INR94 crore to INR116 crores. From an operating EBITDA perspective, we are more or less similar or just about 10% behind where we were same time last year from INR20 crores to about INR18 crores. And that dip is across both segments, a little bit more in the ad-tech space than in the space. Specifically looking at the ad-tech space, as you’re all aware, it’s divided into three components, Tesprec, which accounts for about 80% of our business and then the platform and publishing business. The Tesprep business has been a little bit of a challenge this financial year as we see a lot of flux from — in both our MBA and law businesses, largely on account of a lot of local competition and a lot of online players entering this space and flooding the market with freemium products. I’ll spend a little bit more time on this in a later slide, but just to give you a quick overview, the test prep business, the revenues are down by about 9%. On a platform monetization perspective, we’re up 20% and the publishing business is up — up about 8%. On the side, we’ve already shown you that we’re up about INR22 crores. This revenue growth comes at about 19% from India and about 26% internationally. The margins, as we mentioned, are a bit lower. This is largely on account of environmental factors and how things are on-the-ground, especially with tech companies. But we are working to mitigate the same and the situation should improve considerably in the next financial year. From a long-term perspective, things continue to look bright. And as an organization, considering where we are looking to grow both organically and inorganically, we continue to invest in people and technology from a long-term perspective and you’ll see that when — when you compare the operating EBITDAs, especially looking at specific areas like employee benefits and so on. Coming on — moving on specifically to the two business lines. On the side, as mentioned, we’re up at about — we’re up about 20% of the EBITDA I already explained, but specifically in terms of what we’re doing, we’re looking to leverage some of our key clients in the Indian space to open doors across APAC. We work with some of the best names in the technology space in India, including Microsoft, Dell, Amazon, Facebook and so on and we’re looking to leverage that to get more business from Singapore and Indonesia where we have offices now. And as we mentioned, our international business is growing at 26%. So very solid on that front. Vosmos also continues to grow well with the sales force coming on as a new customer across India and APAC. We are in the process of executing seven events for them across the two regions, four are already done and three are in the pipeline. And our meta commerce initiatives continue to bear fruit. You would have seen in some of our older videos, we had given a walk-through for all investors on the work we had done with Royal Orchid, we are happy to share that, that has moved beyond the pilot stage and we also now have a project with the Sterling Group and Taj and Oberoi Groups have also picked-up pilots. So all looking strong, all looking good. Hopefully, the margins will also continue to pick-up over the next few quarters. Moving on to the business, specifically the test prep side, from an enrollment perspective, our MBA numbers are up on a Nine-Month — from a nine-month comparison of FY ’24 to FY ’25. The MBA numbers are up 14%. Some of this has come at the cost of a fairly different kind of product mix as we see a lot of students opting for shorter-duration programs and online programs and testing and assessment programs. So what that has meant is the P&2Q is lower and so there is a revenue dip across the MBA segment. But as we said, we’re doing what we can to mitigate this and we’ve launched our own series of freemium products, including an zone and so on. And we’re hoping that this picks up in the quarters ahead. From a law perspective, we’ve shared in previous sessions as well, the shifting of the exam date has impacted this market considerably and it has completely wiped out key two key segments of that space, which is the crash course students who would typically come after their Board exams and the repeaters market who would come in the — after their grad — after they finish their high-school. Both those markets would have contributed typically 35% to our — to our total business and were very-high margin businesses. Both of those don’t exist anymore. But what we do see is a lot of students gravitating towards a two-year program rather than a one-year program and that has meant that we’ve managed to keep revenues fairly close to where they were earlier, but yes, that has an impact on margins. Our CUET also has been impacted — it hasn’t grown at the speed at which we would have liked when we launched the product three years ago. A large chunk of that comes down to the way the tests have been executed and managed, but I’m sorry, my slides have moved just a second, please. Yeah. But you know that’s something that we are working through and we’re looking at introducing more product variants in the — specifically in the UG space, including hotel management programs and focusing more on our BBA and IPM segments to continue to grow that space. We signed-up 19 new partners this financial year. And in terms of other initiatives that we’ve started, we’ve relaunched our CSAT program. We had mentioned in our last in our last analyst call that CSAT used to be a INR20 crore business for us and we used to handle more than 20,000 students a year at its peak about 10 years ago, then the market dynamics changed the requirement of that exam being a necessity became — you just have to get your 33% to clear it and the number of people who would take preparation was impacted. That exam has become much more difficult in recent years and there is a growing demand for it once again. So our CSAT relaunch is in-process and we are looking at specific markets where we will look to engage. We are also looking at launching a whole new set of market-oriented courses are largely as an add-on to our MBA prep programs. So whether it’s MBA plus GMAT or MBA prep plus CFA or CPA and so on, these are other avenues that we are currently evaluating and you should hear more about this over the weeks and months ahead. If you do follow our news, you would have also heard about our new higher-education transformation initiatives with the launch of checks. There’s a gentleman who has returned to the career launcher fold after a 30-year gap, Alok Mehta, who has joined in a dual role as CHRO for the company and as the Business Head for Checks, where he will be interfacing with universities and companies bringing CL in as the go-between to help companies with their aspirations of getting quality freshers and helping universities with their placement initiatives. And you’ll probably hear much more about checks in the upcoming financial year. I’ll quickly move ahead to our platform monetization business. Happy to share this is up about 20% and its EBITDA is up 84%. This is a business, as you’re all aware where we leverage the assets we already have. So the more we can — we do in this business, it comes at very-high margins. We’ve also looked for the first time at onboarding partners outside the CL ecosystem in this, where we’re looking at working with engineering and medical colleges to sell their forms and onboarding tuition centers for the same. And I’ll quickly just wrap-up by spending a few minutes on our publishing business, which has also grown by about 8%. Our total book sales so-far this year are closing in on 5 lakhs and specific segments that continue to do exceptionally well are RRB gate, books doing very well. It’s been a bit of a slow season this year for UPSC, Physics Galaxy and our material, but we’ve tried to counter that by launching new additions in January, specifically in the Physics Galaxy and space. That’s a quick wrap from me and I’ll now throw the floor over to questions. I see a bunch of them in front of me. If you just give me 30 seconds, I’ll go through them and pick them up and throw them either — either to Gotham, Satya or take them myself over the next couple of minutes. Satya,, anything you’d like to add
Satya Narayanan R — Chairman & Executive Director
That’s okay we can take the questions
Questions and Answers:
Arjun Wadhwa
Right okay a lot of congratulatory messages on the DEX deal a lot of our consistent well wishers over the there are consistent questions from Madhur Garvit on the and the Tespre business and what specifically we are doing to mitigate the drop-in revenues in this space. GP, would you like to take that?
Satya Narayanan R
Has GP got disconnected?
Arjun Wadhwa
Let me just check.
Satya Narayanan R
So maybe we can take questions first and then come back once. I think I can’t see him on the.
Arjun Wadhwa
Yeah, just a second. Sure. Satya, let me then throw one to you first. There is a question on DEX and a potential conflict of interest between our test — our test prep business and the DEX assessments business.
Satya Narayanan R
Okay. This is something that we have been absolutely mindful of from day zero. So the areas where CL has interests, we will not venture — will not venture into those areas at all which are essentially the MBA law IPM, these are — these constitute 95% of our portfolio as of now. And the — so one is the choice of what products we will or we will not go. That is one. Even more important is that right from the top-level Board position, including the nominees from CL operating team, we also have taken a cognizance of the importance of this and created processes and the Chinese wall between the two businesses. So other than me, those leadership team or others who are going to be looking at test scrap, they are not going to be active on the NSCIT side from Board onwards. But at an operating level too, we have given the undertaking and we’ve taken internal steps over the past many months since we had the time to make sure that the conflict of interest in these two is close to zero.
Arjun Wadhwa
Thanks Satya. While I have you, there are some follow-up questions also on decks. How is the company expected to grow in the years ahead from its current levels of INR200 crores? This is a question from Garvit.
Satya Narayanan R
Okay. So Garvit, as you know, we try — we just try to not make very specific observations about revenue projections, etc. However, our — see the — we are the second-largest player in the market and by being only in India and we do only about — we do about 11 million assessments as decks in the last 12 months. That is the number of assessments that we have done. And the market-leader would be 4.5 times, 5 times our size. So there is exceptionally large room for growth at a reasonably healthy clip over the next three to five years. And to add optimism to it, some of the largest exams have not been attempted by NSCIT decks for various reasons. There was little bit of a pre-COVID and in COVID and post-COVID since this asset was planned to be hyped off over the last year and a half or two, some of some areas that are very large addressable markets, they now come into focus and we would like to make a very strong entry into those. So I think over the next three years, three to four years, we should look at how do we double this and also give it a very, very impactful profitable non-India presence. While we go into penetration in India, I think there are a couple of international markets also that can be done over the next three years. So doubling from here is the first station for us. How much time does it take? Let’s see.
Arjun Wadhwa
Thanks, Satya. There’s a host of other questions on decks related to the financials, and I’ll just take them very quickly. They’re from some of our regulars like Haymond, Manan and Rahul. First of all, I’m just going to try and-answer them as a consolidated set based on the questions that are there across-the-board. Dex will be a fully-owned subsidiary of CL Educate. The company is called NSCIT Limited. It will continue to be NSCIT Limited till the name change happens. And as part of our share purchase agreement, we’ve worked out a deal to continue to use the name formerly NSCIT for a period of one year. In terms of when we expect to close the transaction, as Satya mentioned, we hope to take-over the Board later this month. It might take another seven to 10 days. We’re working on it and hope to wrap that up as soon as possible. When will it become, when will the revenues and EBITDA start getting counted as part of CL, they will happen as soon as we take control of the company that will become the effective date of the transaction. And from that period onwards, the specifics revenues and EBITDA for the stub period of this year will come to us. And then from the next financial year onwards, it’s completely asked from day-one onwards. More questions related to how is the performance of NSCIT in the first-nine months of the year. Because the transaction is yet to get officially completed till we take-over the Board, it’s not a part of our business, so we can’t declare those numbers yet. But as Satya promised, we will do a specific session where we introduce you to the business teams there and talk about the performance of that business and where it is, what are our plans going-forward and so on. We will cover that in a future session in the not-too-distant future. These — the INR200 crore mentioned in the first slide and the 17% that Satya mentioned were numbers pertaining to the last financial year. This year’s numbers could be better than that. And as soon as it is legally, we can share them, we will definitely do so. I hope I’ve answered all the questions on decks that came through regarding each of these. These from different,
Satya Narayanan R
I think GP is getting dropped off, I think. So let’s cover the tech business here.
Gautam Puri
Sure.
Arjun Wadhwa
And then I’ll come back to questions on yeah. So GP, if you could, there were a few questions on the business specifically asking about the muted growth and what are our plans to mitigate this going-forward and how do we — how we plan to compete with the competition in this space and regain market-share.
Gautam Puri
Okay. Okay. First of all, my apologies, I was getting disconnected. So I missed a couple of things. But I hope the question which you have asked will — I hope my answer will cover all the issues which you have raised. Okay. First of all, when you look at as an industry, there is definitely a pressure on the pricing and this was visible for the last couple of quarters, if not more, that the challenge was in the high-value products, not in the low-value products. In fact, a large number of stores were shifting from a high-value to low-value and I say shifting, obviously, it’s an assumption and this is based on the fact that the number of stores coming for the high-value products was reducing. A second macro trend, which was clearly visible in the last four quarters, I would say at least, is that the large number of stones are shifting towards doing tentration on their own through YouTube 3 material and books, etc. And that is too small — in a small way also visible from the fact that the sales of their books to GKP has also increased significantly. Now given that situation, the reality is that high-value products will be under pressure and I don’t see that pressure reducing in the next couple of quarters at least, it could be a little more than that also. The silver lining there is that the low-value products or the kind of product or the testing products, while is an issue whereas things he or she can prepare on his own on her own. But when it comes to testing, they have to come to somewhere like a career launcher. And that is where we have seen significant growth coming in. Products like have gone have grown upwards of 20%. The negative for us is these are low-value products, but the margins are reasonably high. And if we can grow this segment significantly, it will — in the longer-term, we will be helpful for us to increase the numbers in the high-value products also because typically what happens is many students start by saying that we will prepare on our own. And then after one year when they are unsuccessful, they realize that maybe we need to join somewhere and that is when they will look at those players first who have a good testing product, okay. So that is the situation there. When is — so as far as-is concerned and even law, I would say the top-end of the market will be under pressure and the lower-end of the market is where we’ll have to look at volume gains and market-share gains. Okay. To mitigate this, the other thing that we are doing is we are broad-basing ourselves as far as the UG is concerned. There’s not too much you can do with respect to MBA because that’s a kind of a standalone market. But when you look at the UG, the parent and the child want to look at multiple options. So what we had was only law or only BVA or et-cetera, we are now adding a few more segments to them like management, mass communication, journalism, et-cetera and broad-basing the BVA product because all these exams are similar in nature. Yeah, there are minor differences, but they are similar in nature and all of them are basically testing the aptitude of this drone in a specific domain. And practically all of them are basic maths and English. So it fits in products. So we are trying to broad-base it and go deeper into that market and that is what we will be focusing on as going-forward at the UG level. However, we need to remember again, this is something which will take two to four quarters. The crash course is right next door and the real impact of this will be visible only in the next season. Finally, we are launching a couple of new products, we have already talked about, we are evaluating a couple of other products where we think we can make a dent. By and large, all the products that we are looking at are attitude-based. We are not looking at knowledge-based products at this point of time, but it’s just attitude-based products is what we are looking at in terms of adding new products, okay. Yes,, back to you.
Arjun Wadhwa
Thanks, JP. I think that pretty much I think would cover most questions that would pertain to this segment. If there’s anything else later on, I’ll come back to you specifically. Satya, there are a host of questions on the Utsav business, including if you could kindly just explain how the business model works and a little bit on the unit economics and the potential margins for that business.
Satya Narayanan R
Okay. Ajun, you do you want to now remove the slide and we — or do we need the slide?
Arjun Wadhwa
No, I don’t think we need the slide
Satya Narayanan R
Maybe we can remove that okay so no the, we did put out a video or an information summary on the Keystone Utsa also, right, a few weeks ago about the size of the market. Did we cover in the analyst call last-time?
Arjun Wadhwa
Yes, we did. Yeah. We spoke about the market potential and yeah, where we hope to be in a few years.
Satya Narayanan R
Right. So in the interest of time, whoever has asked this question, I would request you to kindly access that video. We have taken about 10, 15 minutes and four, five slides to explain. But just to highlight a couple of important numbers in the in the in the wedding space which is estimated between a large number, the relevant number for us for the first at least couple of years is that there are 50,000 luxury weddings that happen in India and the definition of luxury wedding is a spend of over INR1.25 crores. So the thing that we are looking at is, can we build technology platform, can we leverage the strength that Keystone has, which does a mammoth three events a day at an average and for top-quality conscious corporates. So the one inside-out strength that we’re letting play-out is that a core team of three to five senior people who understand personalization, high-quality execution, operations, et-cetera, they’ve moved into and we have brought a couple of senior leadership members to be leading the team. And saying that, can we aim to do 1% of the luxury weddings in three to four years times, which means can we build capacity and ability to do 400 to 500 weddings annually in year three or year four? That’s very simply gives you the back of the ongo calculation of 400 weddings at about INR1.5 crores kind of a spend. And we are assuming that the — in absence of having any empirical data, they are guided between what is high-value events or conferences EBITDA that we see in Keystone is what we are taking as the starting point, which is a 10% to 12% EBITDA is what we are thinking, but maybe it can get better if we do a few things that we are wanting to do. The most important thing in the go-to-market actually if you look at is to be able to successfully bring brand play, technology play and personalization play and emerge as a thought leader, thought-leading and from planning to-end execution partner for a family for a wedding or since we are calling it broadly as a social events thing, the other thing that we intend to focus on in the first couple of years is, as you know, wedding is in India more of an October to March phenomenon. And in order to manage the seasonality, the other thing that we intend to do is look at the large-format campus festivals and campus events in the June to October season. It could be, for instance, as you know, large-format college festivals, for example, or alumna reunions, the silver jubile, the Golden Jubilee reunions or the Mood Indigo or OSS or Mardi Gra, these are — these are all these days a IN 10 crore to INR15 crore to INR20 crore events. So we are thinking how do we add season one first-half of the season, these kind of events and season two could be weddings and concerts and so on. So I’ll pause there. Any more details of it, happy to respond if you leave some bunch of FAQs and-answer it in greater detail.
Arjun Wadhwa
Sure. Thanks, Satya. A couple of questions that I’ll quickly just take and then we’ll try and wrap-up today’s session. There’s a question on the GST notice that we’ve received. Just a quick update on the same. This is a demand notice. We had received a showcause notice on the same in the last financial year in March. We had appealed that and we had gone through the process of contesting it using our lawyers, Lakshmi Kumaran. We have now received a demand notice on the same. It pertains to a matter of composite supply books and coaching services should have the same GST rate applicable. The same matter came up during the service tax regime and we won that matter at the Supreme Court level where the courts ruled in our favor using the same lawyers and our lawyers remain confident that the same stand and the same stance will apply in this case as well and that we have nothing to worry about in this specific case. But as a matter of, we have shared that information with the stock exchanges and obviously made that available to all investors as well. There are also a lot of follow-up questions on the DEX business on how we are funding the acquisition. As we had shared previously, we are using a mix of debt and equity. We will continue to — we will share more specific details on that when we do the specific debt session on conclusion of the transaction, but what we can — since there are a lot of questions at what rate we’re borrowing, durations, all of that, I understand this is something you would like to know about and we’ll cover it in due course. We’ll do a separate session on the same. Just on an overall basis where we have borrowed funds from the Piramal Group, which has led a consortium and we have negotiated good competitive rates from them more details will follow in the session we hold in a couple of weeks time if there are no more questions we will pause here right. Okay. Thank you all very much for attending today’s call. We look-forward to interacting with you over the coming weeks and of course, seeing you come the end-of-the season when we wrap-up FY ’25. Thank you, Satya. Thank you, Gautam, for joining in today and have a good day, everyone.
Gautam Puri
Thank you and goodbye.
Satya Narayanan R
Thank you. Thank you everybody. Thank you, Arjun.