ECOS (India) Mobility & Hospitality Ltd (NSE: ECOSMOBLTY) Q3 2025 Earnings Call dated Feb. 13, 2025
Corporate Participants:
Rajesh Loomba — Chairman and Managing Director
Hem Kumar Upadhyay — Chief Financial Officer
Analysts:
Savli Mangle — Analyst
Unidentified Participant
Senthilkumar N. — Analyst
Mohit Vijay — Analyst
Amit Agicha — Analyst
Lokesh Maru — Analyst
Naushad Chaudhary — Analyst
Presentation:
Operator
Good morning ladies and gentlemen. Welcome to the Q3 FY25 Ecos Mobility and Hospitality Limited 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 attached on phone. Please note that this conference has been recorded. I now hand the conference over to Ms. Savli Mangle from Edfactos Investor Relations. Thank you. And over to you, Ma’am.
Savli Mangle — Analyst
Thank you, Ms. Khan. Good morning everyone and a very warm welcome to our Q3 and nine month FY25 earnings conference call.
To guide us through the results today we have the senior management team of Ecosystem Mobility and Hospitality Limited headed by Mr. Rajesh Lumba, Chairman and Managing Director, Mr. Aditya Lumba, Joint Managing Director, Mr. Pali Dev, Chief Operating Officer and Mr. Hen Kumar Upadhyay, Chief Financial Officer. Before we begin, I would like to state that some of the statements made today in today’s discussion may be forward looking in nature.
The actual results may vary as we are dependent on several external factors. With that said, I now hand over to Rajesh to share his comments. Thank you.
And over to you Rajesh.
Rajesh Loomba — Chairman and Managing Director
Thank you and good morning. Namaskar everybody.
Thank you for joining the Q3 FY25 Ecos India Mobility and Hospitality Limited earnings conference call. Ecos Mobility we have established ourselves as a leading provider of corporate mobility solutions in India offering a comprehensive range of services tailored to the evolving needs of the businesses. As many of you would be aware, I’ll still repeat, our primary offerings include corporate car rentals, what we call ccr.
Ecos Mobility provides a diverse suite of vehicles ranging from economy to luxury. Along with the train shoppers, this service will cater to corporate clients, travel companies, even management companies across more than 109 cities in India and over 30 countries globally. Commitment to quality and reliability has earned us the trust of numerous Fortune 500 companies, BSE 500 companies amongst others.
Our other offering is Employee Transportation Services which we call ets. Here we offer customized solutions for employee pickup and drop home, office, home while at the same time ensure safety, punctuality and efficiency. This service is particularly beneficial for our major target clientele comprising of it its companies Global Capability Centers or GCCS as they’re commonly known and manufacturing.
Our focus on employee satisfaction enhances productivity and morale and most companies offer this as a benefit and a service for their employees. Now the Indian corporate mobility market is experiencing pretty good robust Growth. It’s driven by economic expansion, regulatory changes and the technological advancements we see around us.
Both ETS and CCR are evolving to meet the changing needs of businesses and individuals. The sector is predominantly dominated by unorganized players still and catering to price sensitive customers. However, as the industry matures, further integration of the organized sector will lead to a more structured and efficient corporate mobility system.
And that is what our vision is now. In this scenario, we remain committed as ECO to increasing our wallet share from our existing customers. We are constantly.
Additionally, we’re constantly attracting new clients and expanding into tier 2 and tier 3 towns across India. This year we have added over 130 clients which we consider and the clients are our strongest asset we believe, but also the trust we built with the marquee clients over this financial year and over the years before. Now the clients that we have added this year, I’m happy to inform you the leaders in the respective sectors, they’re large IT MNCs, they’re one of the largest, one of them is one of the largest port logistics providers in the world.
Then we have very well known and very well respected global management consultants that we’ve added many financial services firms, many private equity firms and also prominent consumer good companies of India. So these are some amongst the 130 that we added just, just in the last nine months. Now, having earned the trust of industry leaders across most of the sectors that we are present in as our target audience, we are confident that these clients will remain with us for a long term, helping us derive what is most valuable to us, which is a very high lifetime value and which helps drive our sustainable growth in the future.
Now, eco’s resilience is anchored in the trust we’ve established with our customers. Even right now we’re facing a very volatile industry landscape. Let’s mark a rising competition and pricing pressures in both our established and our emerging markets.
But in spite of that, we have managed to grow this well. Our focus remains on a fundamental target audience which is the B2B space comprising corporate and travel and events as I mentioned earlier. So we expect to achieve a top line growth of around 16 to 17% this year with margins in the range of 13 to 15% as per our estimates currently.
At the same time we will continue to drive brand premiumization, delivering tailored solutions for an unparalleled customer service, which is what customers come to us for and driving the operational excellence that will position us for robust growth in the future. So with a strong emphasis on technology, chauffeur training, quality Control. Eco is well positioned to continue its growth trajectory, taking advantage of the expanding market and the shift to more organized working in this industry and meeting the evolving demands of the corporate mobility sector.
I’ll now hand it over to Haim, our CFO who’s here with me. He’ll take you through our financial performance.
Hem Kumar Upadhyay — Chief Financial Officer
So good morning everyone, all the listeners and thank you Raj.
So I just like to take through our financial performance for this period and a review. In the first nine months of FY25 our revenue from operation stood at 4767 millions and as compared to 4054 million in nine month FY24, reflecting a year on year growth of nearly 17.58%. So this growth aligned with the expansion of our two core businesses I.e.
Software current and the employee Transfer Service. During this period, EBITDA for 9 month FY25 was 659 million as compared to 678 million in 9 month FY24. Our EBITDA margin for 9 month FY25 stood at 13.83%
Down by 289 basis points from 16.72% in the period of 9 month FY24. The declining margin was primarily due to pricing increase, high higher operating cost, increased indirect expenses and some of these indirect expenses were associated with events and festival occurred or incurred during this period.
Our PAT stood at 420 million in 9 month FY25 as compared to 445 million in 9 month FY24 leading to a decline in PAT margin by 260 basis point compared to the same period last year. This was due to increased depreciation cost from new fleet addition, higher direct indirect expenses and slightly reduction in the unrealized gain on the investment which we have in the mutual funds and equities. So thank you all for listening.
Now I will hand over to Mr. Rajesh for the concluding remarks.
Rajesh Loomba — Chairman and Managing Director
Thank you Hem.
And thank you to all our clients, partners, the ECOS team and our stakeholders and shareholders. We remain committed to the growth, to innovation and to studying new benchmarks in the industry. Our goal is to continue building value for all our stakeholders and we are at it.
We’re open to take any questions that you may have.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session.
Anyone who wishes to ask question may press star and one on the touchdown telephone. If you wish to remove yourself from question Q, you may press star and two participants are requested to use answers while asking a question. Ladies and gentlemen, we’ll Wait for a moment while the question queue assembles.
First question is from the line of Diamond Shah from Equator Security Private Limited. Please go ahead.
Unidentified Participant
Yeah, hi Tim, am I audible?
Rajesh Loomba
Yes please, I can hear you.
Unidentified Participant
Yeah. So basically starting with the first question which is related to gross margin, if we see a quarterly trend last year the gross margin were in the range of near to 30% on an average. And if we see the current year trend it is near to around 27% on an average.
So just wanted to have your thought on the gross margin and what we can expect going forward in terms of this gross margin. The second question is if you see our other expense trend, it has been in the range of 4 to 5cr on a quarterly basis. It has jumped to around 7cr this quarter.
So just wanted to see if there is any one off because you have mentioned the one off in the press release as well. So if there is someone off, what is the quantum of that one off and what could be the rate going forward for this other expenses? And on the EBITDA margin front earlier guidance was near to 15 and a half or 16% on a longer term basis. Right now it has been revised to 13 to 15%. So what is eventually changed which is leading to this lower EBITDA margin percentage? And just one clarification on the guidance that you have given on 16, 17% growth and 13, 15% margin is this is for FY26, right? This is for FY25.
Rajesh Loomba
Okay. So to answer your first question, yes it’s last few months we have seen an increased competition which has put pricing pressure which has also led to, you know, a decrease in our gross margins.
We are restrategizing currently to understand the trajectory going forward so that we may be able to get back some of the margins that we have lost. So yes it is there due to increased competition in the market and I guess an industry which was earlier little below the Riddha has come more to the forefront and resultingly the competition has grown which is a fact and we have to face that as regards your little increased costs in the indirect expenses. So this quarter we saw some one off, one time expenses which saw a higher expense including some expenses on events and the festivals that we spent.
Also certain GST input reversals were there which was a one time which was factored into this quarter. Also certain excess charges in terms of we had to pay off for server hosting. So this added to the extra approximately two crore rupees of costing.
So if you look at quarter to quarter basis, if we see a decline of around 2.9% in our EBITDA. I would put around 0.9%
Quarter to quarter to the increased operating costs due to the pricing pressure and 2% would be due to the one off expenses that we incurred. I hope I was able to answer your question.
Unidentified Participant
Got it sir. And sir, on the EBITDA margin guidance, what would be the range that we can estimate for FY26 and even if we see the see the growth guidance as well for FY26?
Rajesh Loomba
Yeah. So we are, we are, while we are very, very, you know, hopeful of doing better than what we are doing currently and even the quarter that is currently undergoing, we are, you know, seeing a good, you know, jump back into the business with our CCR business also increasing. But at the same time want to be little conservative and and watch the situation.
And also like I mentioned, we are restrategizing to understand how we can improve and increase our margins. So while there may be pricing pressure but at the same time we also have some leeway to increase to better our purchase price and that is what we would endeavor to do in the next year.
Unidentified Participant
Got it sir, just one bookkeeping question. If you can provide the bifurcation between ETS and CCR for the quarter and even for the corresponding quarter last year.
Rajesh Loomba
So this last quarter we did around 43% was the CCR and 57% was the ETS and for the whole year I think we will end up with around 42% for CCR and around 58% for Etsy. Similar should continue for the next year also.
Unidentified Participant
Okay, and so the pro the numbers for 18th and CCR for the last year, third quarter like 3QFY24 we had like 4,951 in 1H last year. FY24. Now what could be the number for 3Qfi24?
Rajesh Loomba
I’m sorry, I didn’t understand the question.
Unidentified Participant
Yeah, so this is quarter, we have 43% CCR, 57% ETS. What would be the corresponding number last year? Same quarter, third quarter, FY24.
Hem Kumar Upadhyay
44 and 56.
Rajesh Loomba
It was around 44.56.
Unidentified Participant
Okay, okay, got it sir. And so the one time expense you are talking about is this, is this kind of a recurring in this particular quarter of third third quarter of the year or it is just one time that we are having like some events and festivals and all it will be recurring going forward as well.
Hem Kumar Upadhyay
So here are that decide sir. So some of the expenditure, most of the expenditure are one time and the certain expenditure like server hosting and some professional Charge we have already taken care all the area, area part, accrual part. Now it will be the. The routine basis. So it will not impacting much going forward.
Unidentified Participant
Got it. So just one last question from my side is just wanted to understand your business metrics. As you said that competition is increased which is eventually leading to you can say cutting the pricing or eventually it is impacting our margins.
But from the supply side is it like that there is a shortage of the supply of the vehicles and drivers and all and eventually fuel cost has been largely similar and we can see that we don’t have any major control over the costing that will be paying this material driver or the owner. This much percentage would be going to them. There will not be any change in that percentage eventually and whatever is the outcome of this reduction is gross margins mainly on the sales side.
Rajesh Loomba
So here. So there is no. There’s no. As far as we’re concerned we don’t see any dirt of supply for us at the same time while we are like I mentioned when we will endeavor to increase our margin. But we also have to see that we leave enough on the plate for our vendors too for a sustainable supply to exist. So we have to draw a fine balance over there.
Unidentified Participant
Got it. And so just one more thing. The pricing pressure and competition that we are talking about, it is across the segment TS and CCR or it is specific to any one of the segment.
Rajesh Loomba
Yes it is. It is across the segments and we face these. You know that’s where our over 30 years of experience hopefully should come in handy. We’ve faced such cycles earlier also and we’ll be able to tackle them well before ocean. I’m sure we will tackle them well now too.
Unidentified Participant
Got it sir. That’s it for my side. If I have anything I’ll just join the queue. Thank you so much.
Rajesh Loomba
Thank you.
Operator
Thank you. The next question is from the line of Central Kumar from Jointer Capital Services. Please go ahead.
Senthilkumar N.
Good morning. Am I audible?
Operator
Yes.
Rajesh Loomba
Yes.
Senthilkumar N.
Yeah. Thanks for the opportunity. Sir, in the last conference call management says that the margin was impacted due to the higher contribution from ETS business where the cost of operations is higher than the CCR business. You also said that now CCR business is picking up from September onwards. So that should lead to the higher margin in Q3 and Q4 of FY25.
But when I see this quarter also we are seeing 26 percentage jump in cost of services and 300 basis points dip in EBITDA margin. So just now we have stated that there is no big difference between the revenue mix between CCR and ETA business. So my question here is if the CCR business is still facing a challenges to grow, if s what could be the growth driver for the CCR business to go ahead?
Rajesh Loomba
Yeah, thanks for your question, Mr. Sental. A valid one. So while we see a 3% drop in the EBITDA margins, like I mentioned earlier, only around 0.9% is contributed by a drop in the margins. While the 2% is because of the one off expenses at the same time, even though the proportion of CCR business has grown. But yes, there has been pricing pressure where we had to reduce rates in CCR also because of the realities of the market on the ground.
And so that is the reason for a drop in the gross margins in spite of an increase in the CCR business.
Senthilkumar N.
Okay, okay. And my second question regarding this global operation, actually we are receiving a revenue of less than 2 percentage from the group global operations. Okay. So I just want to know what is the madam rational behind the investments in overseas business? Because now the overseas business is extremely competitive, especially in Europe with fantastic public transport infrastructure. I just want to know your thought on this.
Rajesh Loomba
So we are. We are primarily serving the Indian market, traveling overseas. Right. So in that case we still see a huge scope for growth of the business because currently they may be looking directly, which is where we see an opportunity to tap into that market. And there we are now constantly increasing. So many of our clients have already more of our clients have started using our services overseas and we are keeping on adding on every day, signing up with new, new existing clients who now are starting to use us overseas. So while in the entire year, you know, last financial year we did around 5 crores of business in serving our clients internationally in this nine months we’ve already crossed around 8 crores of business for international operations.
Senthilkumar N.
So it’s EBITDA past you, sir. International business.
Rajesh Loomba
Oh yes, absolutely. It’s a model. It’s asset light and all managed out of India with a high ticket size.
Senthilkumar N.
So U.S. is the main contributor. Right. U.S. region.
Rajesh Loomba
Europe, Middle east and U.S. all three.
Senthilkumar N.
Okay, so thank you. That’s it. From my side, I joined the queue.
Rajesh Loomba
Sure.
Operator
Thank you. The next question is from Mohit Vijay from Oculus Capital Grow Fund. Please go ahead.
Mohit Vijay
Hello. Am I audible? Sir?
Operator
Yes, sir.
Mohit Vijay
Yeah. First of all, congrats for. I just want to ask what’s the future outlook for the industry and for the company and also future outlook for the margins.
Rajesh Loomba
So the future outlook looks good for the industry as a whole with the growth of the economy, growth of tourism. I’m not sure about the global scenario with, you know, a lot of volatility being seen, the Trump tariff, how that may affect international travel. But domestically, I think the business scenario and the travel scenario in India looks very, very positive as we can see from the results of the hotel companies, etc.
Also at the same time we are seeing an increased competition within the sector within India and which is where we are facing certain pricing pressures. But from the growth point of view, we don’t see any challenge in the growth of this business. A lot part of our growth is also dependent on beyond the GDP growth and the travel growth in, you know, we also see a lot of growth happening because of the transfer of business from the unorganized to the organized.
Right? So that is an additional delta that adds on to the growth and that is how ECO is able to generate a higher growth than the industry.
Mohit Vijay
So sir, after shifting of the industry from unorganized to organized sector, as the shift is going forward, so will the margins going forward contract or will it remain in the same level?
Rajesh Loomba
I think the margins should remain near about the same level or little bit increase if we’re able to improve our pricing with our clients or at the same time also improve our pricing with our vendors on the other side. So we are looking at both these aspects as we move ahead.
Mohit Vijay
Okay, thank you sir.
Operator
Thank you. Next question is from the line of Amit Agicha from HG Hawa. Please go ahead.
Amit Agicha
Good morning. Thank you for your question. Yes sir. Congratulations for good revenue, sir, but EBITDA margin is a little bit affected anyways. Like the question was connected to the cash balance.
How does the company plan to utilize it and what is the company strategy? Is there any plan for debt reduction or leveraging further?
Rajesh Loomba
So yeah, thank you. And I can understand, you know, the disappointment with the EBITDA or the profitability in this quarter, but in my experience it’s been more than 30 years and such cycles do happen. We have to have the resilience and the focus to maintain our, you know, maintain our path and ensure we concentrate on the business to serve our clients in such a manner that they do not have a, you know, any other option other than ECO when they move around. So, so can you just repeat the other part of the question that we had because I missed.
Amit Agicha
My question was connected to the what is the current cash balance? How does the company plan to utilize it and what is the company’s debt strategy? Like? Is there any plan for debt reduction or Leveraging for the.
Rajesh Loomba
So we are almost at a very negligible debt. If you see our debt ratio, it has consistently gone down and is now, I think only 0.2%. Right. Sorry, 0.04% is our debt equity ratio currently. So we have negligible debt. We don’t intend to take on more debt. We have a healthy cash position. We are still looking at targets for acquisition. At the same time, we would be looking to utilize that for giving out a good dividend division also end of this year.
Amit Agicha
All the best for the future, sir. Thank you.
Rajesh Loomba
Thank you.
Operator
Thank you. The next question is from the line of Lokesh Maru from Nippon India Mintul Fund. Please go ahead.
Lokesh Maru
Thank you for taking my question. So just one question around margin. So gross margin has come of 500 basis points.
Right. Which is a big jump, big drop. I mean pre ipo, post IPO in that context, what has changed? I’m sure you have seen this for a long time.
But just to emphasize more on, you know, competition has been there throughout. Right. The entire time.
So what has changed in last two quarters or last quarters per se on either on pricing front or either on, you know, on the sourcing front? If you could elaborate a bit more. So as compared to the last year, the margin drop which is there is not from 500 basis points to the best of my knowledge. I think it’s around 250 basis points.
That is a bit. I think gross is much larger.
Hem Kumar Upadhyay
It’s a 289 basis point. If we compare nine months of FY25.
Lokesh Maru
Sorry, I was comparing quarter on quarter last quarter, Q3 FY24 and Q3 FY25.
Rajesh Loomba
We will get back to you directly on that. I don’t. We don’t have that number with us currently. Haim does not have it written right now offhand, so wouldn’t want to say anything wrong, but we don’t think it is 500 basis points. Can you just take it out? So but at the same time, the reasons are the same. If you’re comparing quarter to quarter, there is a pricing pressure and that’s a reality which has set in over the last four, five months due to the increased competition. And we are.
But we think as compared to the rest of competition, we are better positioned to manage it and in fact take advantage of it and win over newer accounts and increase our, you know, the acquisition of our clients. This is that also. So we have the competition in a situation.
Yeah.
Lokesh Maru
So the competition would be more from the organized peers or is it against the Unorganized one.
Rajesh Loomba
It is from both. It is from both. It’s a mix.
Lokesh Maru
Okay. Okay, thank you. The next question is from the line of again from Capri Goble. Please go ahead.
Unidentified Participant
Hello? Hi, sir. Am I audible?
Operator
Yes, sir, you’re audible.
Unidentified Participant
Yeah, yeah. Thank you. I just have one question. I just wanted to understand that given the long track record that the company has had, typically when does one see this? What triggers the heightened competition that we are currently seeing? In the past, what have been the various factors which have led to such competition? And currently what do you see as the.
Because we are seeing good top line growth, which means that business growth is not an issue for us, then what really are the various factors which are driving this increased competition in the market? And you could draw some parallels with what had happened in the past. If you could help us understand this better, please. Thank you.
Rajesh Loomba
[Technical Issues] Yeah, sorry, I think the call got disconnected. Yeah. So The EBITDA in Q3 of 24 was 15 point same. How much? 15 point?
Hem Kumar Upadhyay
15.42%.
Rajesh Loomba
It was 15.42. And this Q3, it is 12.85.
Hem Kumar Upadhyay
So it’s by 257 basis.
Rajesh Loomba
257 basis points, not 500 basis points. But the reasons remain the same. At the same time, you know what I had just already mentioned and which is where we are expecting this year to close between 13 to 15% of EBITDA. So that is what I had mentioned earlier also.
Lokesh Maru
Hello?
Operator
Yes, sir. Can you just repeat.
Lokesh Maru
Can I. Can I go ahead with my question now?
Operator
Yes, sir.
Lokesh Maru
Yeah, hi sir, thank you so much for the opportunity. But I just have one question. I wanted to understand that based on past instances, if you could outline as to typically, what are the factors which drive such escalation in competitive activity.
And currently also while business growth has been good for us, then what is it that is triggering such heightened competitive activity in the market?
Rajesh Loomba
But half in jest, what I can say is maybe we have been a victim of our own success. And the IPO may have also helped bring this industry more into the limelight, which is where we’re seeing previously unknown competitors also entering into this industry. And they may have a root shock in a few in some time when they really understand it’s not as easy as it looks.
So there are these blips when you get competition and it takes time for everybody to learn about the business and understand the business. But in the meantime, a lot of times they do what is the easiest to do, which is to drop prices. And at the same time we have to face the competition anyhow.
And we still have to grow sustainably and profitably and our strong brand in the corporate sector does help us a huge lot to do that.
Lokesh Maru
Okay. Okay, got it. Thank you.
Operator
Thank you. The next question is from the line of Nashad Chowdhury from Aditya Birla mutual fund. Please go ahead.
Naushad Chaudhary
Hi. Thanks for the opportunity and congrats on decent top line.
Coming back to margin side, you have indicated 25, you would close 13 to 15%. And by when do you think this should normalize? And you may go back to your 16, 17%. What one should expect from in FY26 on the margin side.
Rajesh Loomba
Yeah. Hi Nushad. So something that I have learned over the last six, eight months, you know a relatively young period in the capital market is to under promise and over deliver.
So while we are understanding the situation and the ground realities and the change because of the dynamic nature of any business anyway but with an increased competition it does bring a new dimension that we had not factored in. Maybe earlier, to a lesser extent maybe. So we are endeavoring that how we can still stay ahead of the competition and recover the loss margins in the next year is going to be our endeavor.
Of course, always we have the, you know, just like any business and as a majority shareholder it’s in our interest to make sure that we keep increasing and making all our energies and efforts to, to increase margins constantly. That’s the nature of the business. So that you can rest assured we are at it.
Naushad Chaudhary
And can it be worse than what we have just experienced?
Rajesh Loomba
I don’t think so. I don’t think so. I think we are, we are seeing a peak of the competition that is coming in.
But I cannot say but I, I don’t think so. With our experience and, and our, you know, brand in the corporate mobility sector we think we should be able to come out a winner as compared to all the others.
Naushad Chaudhary
Again on, on the scalability piece we generate very, very high and healthy ROC in the business. And is there an idea to you know, compromise and let, let some benefit go to our stakeholders like your vendors and all to scale up the business first because there are so many unorganized, there’s many low hanging fruits and businesses scalable the way we have managed it. Is there any thought on that piece making 60, 70% ROC versus making 20, 30% also if we can scale it up from current base to 2.3x of our revenue size, shouldn’t that’d be a good idea?
Rajesh Loomba
So we have, you know, grown and done our Business in a certain way over so many years and done it quite successfully.
You know, at the same time, changing positions, changing dynamics can make a case for a change in strategy which we are constantly internally looking at and discussing. And we would take the right, hopefully we would take the right decision on if there is a change in strategy to grow by utilizing more capital. It brings its own challenges.
But yes, the roce would go down. We’re cognizant that we have not yet taken any kind of major steps in that direction. But yes, we are considering. So we shall see what is the best strategy that works out which balances out growth and profitability and the and the efficient use of most efficient use of the capital that we can.
Naushad Chaudhary
Okay, and last, I missed a few initial remarks. If you would have touched upon this on a growth side, would you like to revise your growth guidance? Given the run rate has meaningfully improved versus what was expected, what kind of growth we should expect in a full year of 25 and 26.
Rajesh Loomba
So we are joining Healthy Pipelines. Like I mentioned, we have increased our sales team and we are currently in the process of drawing up our AOP for the next year. Definitely we would do better than what we have done so far considering it takes time for the sales teams to settle in, develop their pipelines, etc.
And we are hopeful of bettering what we’ve done and we would have a clearer picture once our AOP is completely finalized.
Naushad Chaudhary
All right, sure. Thank you so much.
Operator
Thank you. The next question is from the line of from Equator Security Private Limited. Please go ahead.
Unidentified Participant
Yeah sir, thanks for the opportunity again. So just wanted to understand on the contract negotiation part, like what is the period we generally negotiate or increase the pricing with the existing customer. Like is it the financial year end or a financial year beginning or any specific period where is majority of the contract would be due for the renewal?
Rajesh Loomba
It’s mostly at the beginning of the financial year.
Unidentified Participant
Got it. So just wanted to check on this part. Let’s assume that we are at the fab and then I will be going the contract negotiation in the month of let’s say March end or April or even in the May.
At that point in time, is there anything that you are wanted to highlight in terms of pricing pressure or something because your financials are now public so the other players would also be looking at what numbers you are making versus what others are making and eventually they’ll be doing some contract negotiation in that but it will impact your margins going forward as well. So just wanted to check on that, but of course we are knowing that competition has been there. But major contract negotiation will be coming in April or May. Despite that it has impacted our margin in last two, three quarters.
Rajesh Loomba
Yes, whatever you know are due for renewal typically would come in those months and not, not all contracts get due. Those contracts vary between, typically vary between three to four years.
At the same time, the negotiation is more sophisticated than just about price. There’s so many other technical matters that the clients look at and the value that Eco gives as a company and of course pricing matters has a very large role in that. At the same time the other factors also become to be considered.
And so we will only get know at the time of negotiation. And each negotiation, each client is different. But these are margins that have been maintained over many many years and we don’t see there being too much of an effect on that.
And it can go both ways. It can go, the pricing can go up also, a little down also. But inflation also has to be considered.
So the various factors, hard to say. And give a general trend to how this will go.
Unidentified Participant
Got it. And just one bookkeeping question. Our revenue for the nine months has been up around 17.6% in total.
I just wanted to check the customers that you would have added in the latest year, how much would be contributed from them in total and what could be the organic growth from the customers that you were already having at the last financial year end. Any problem?
Rajesh Loomba
Yes, so we have from the last financial year. One number I do have handy is that in our existing customers we saw growth of around 23%. Right? Yeah. So we saw a growth of 23% from existing customers from the same period from last year to this year.
Unidentified Participant
Okay. So because revenue has been increased by around 17.6% only in the nine months and we added 130 overall clients in this nine months. So just wanted to check like we would have lost any customer, which is.
Rajesh Loomba
So what happens is when you add on new clients, it takes time for the new clients business to be built up. So assuming I’ve added 130 clients in the last quarter, so these clients will actually start giving a substantial part of the business towards the end of the next quarter.
Unidentified Participant
Got it, Got it. And so this newer client edition that we are doing it is mainly for which segment, ATS or ccr?
Rajesh Loomba
Both we’ve done for both. We have added I think almost six clients, nine clients in ETS and the balance in ccr.
Unidentified Participant
Okay. Okay. And so this, do we have any minimum guaranteed income from any of the client or it is just that we added and whatever they’ll be giving it will be adding up to the revenue.
Rajesh Loomba
No, we do not have any minimum guaranteed income that any client guarantees us as such. But we have an estimate of how much business that they do during the year and then it’s up to us and our service levels as to how much of the valid wallet share of that client we can take. If it is the client who see which is using multiple vendors and if we are the sole vendor then we can expect to get 100% of the share of the business of that particular client.
Unidentified Participant
Got it sir. That’s it from my side. Thank you so much.
Rajesh Loomba
Thank you.
Operator
Thank you. The next question is from the line of Ashish from Business Match. Please go ahead.
Unidentified Participant
Hi, good morning sir. Thank you for taking my question. There are two questions. So one of the pricing front, you know, since you’ve been around in this business for such a long time, what’s your sense when you compare this to the previous periods in terms of pricing, how does it, how does that look and if you can share, you know, some of that with us for us to get this confidence that pricing is at the lower end now.
Rajesh Loomba
Yes, so, so what happens is what we have seen, I can share anecdotally only with you is that there comes a time if suddenly the supply increases or many new competitors would come in like this. So a lot of times what they do is easiest way to put in the door and put in door is to drop, drop your prices.
Then drop the prices. But do they have the expertise and the resources to deliver the service? In many cases and that on a Pan India or a global basis in many cases they don’t, they’re not able to live up to customers expectations and then customers start to replace them again. And I’ve seen this happen many cycles before.
So this basically plays out for a few months every time and then then when customers start looking for getting their quality suppliers back and prices start rising back again. So that is how you know the same cycle is played out.
Unidentified Participant
Hence you know, this, this new customer acquisition. So is it so easy for competition actually to get enrolled? You know with these corporate clients.
Rajesh Loomba
It’s not easy to get into the large corporate clients but yet smaller it may be with the lure of, you know, the cheaper prices but at the same time they do put the pricing pressure right and then, and I don’t disagree with the client if they use, you know, competition pricing to bring your pricing down.
Unidentified Participant
So one last question was on this new client’s acquisition about 113, nine months. Is it predominantly in the same areas which are our strongholds, which is this, Gurgaon, Delhi, Noida and some of the other places? Or have we managed to acquire clients at some newer regions?
Rajesh Loomba
So our stronghold in terms of client acquisition is not just Delhi, Gurgaon, Noida. We have majority of a business actually animating from Bangalore today, then followed by Gurgaon, then Mumbai, then I think Pune and Hyderabad are similar, and then Chennai and then Kolkata.
Unidentified Participant
So the new client acquisitions are pretty much in the region.
Rajesh Loomba
They’re across the country. Across the country. Strong sales team across India.
Unidentified Participant
Okay, thanks. And one last thing. The pricing pressure that you’ve seen, any change in your working capital cycle or it continues to remain the same?
Rajesh Loomba
It’s the same. There’s no change.
Unidentified Participant
Okay. Thank you, sir. And all the best.
Rajesh Loomba
Thank you.
Operator
Thank you. Is there no further questions from the participants? I would now hand the conference over to the management for closing comments.
Over to you, sir.
Rajesh Loomba
So thank you everybody for your patience in taking these calls and for your questions, which are very, very valid. We.
We really appreciate the trust that you have imposed on us and we hope that we will, in the future, also be able to live up to it. I can understand the disappointment in the margins, etc. But it’s the nature of the business and things can get quite dynamic on the ground. And we hope to be able to live up to expectations in the future. Thank you.
Operator
On behalf of Ecos Mobility and Hospitality Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.