InfoBeans Technologies Ltd (NSE: INFOBEAN) Q3 2025 Earnings Call dated Jan. 28, 2025
Corporate Participants:
Surbhi Jain — Company Secretary and Compliance Officer
Avinash Sethi — Co-Founder, Chief Financial Officer, and Director
Mridul Maheshwari — Manager, Corporate Development
Unidentified Speaker
Mitesh Bohra — Co-Founder
Analysts:
Unidentified Participant
Presentation:
Surbhi Jain — Company Secretary and Compliance Officer
Good afternoon, ladies and gentlemen. Welcome everyone and thanks for joining this earnings call of Technologies Limited for this quarter ended on 31st December 2025. The results are available on the stock exchange. In case anyone does not have a copy of the theme, please do write to us and we will be happy to send over it to you. To take us through the results of this quarter, we have with us Co-Founder, Mr Avinash. We will be starting the call with a brief overview of the company’s performance and then we will allow the Q&A session. Kindly ask your questions by raising your hand after the brief overview by is over and then we will address all the questions one-by-one. I would like to remind you all that everything said on this call that reflects any outlook for the future can be considered as a forward-looking statement and must be used in conjunction with the uncertainty and risks that we face. These uncertainties and risks are included, but not but not limited to what we have mentioned in their prospectus led with the SEBI and the subsequent annual report. With the said note, I turn-over the call to Mr Vinaj. Over to you, Vinaji.
Avinash Sethi — Co-Founder, Chief Financial Officer, and Director
Thank you, Suji. And thank you everybody for joining this call. We appreciate your interest in. Let’s start. I’ll quickly run-through the highlights of the company and then we’ll talk about the results and then we’ll open to Q&A. Beings, the company was founded in 2000, we are leasing 35 years now. 15 globally unknown for AI-led design and engineering work. We strive to deliver meaningful work, bringing full value to our customers using the best of the available software technology in the world. We are present in all the locations that you see on the map. In India, we are in five locations in Europe and Frankfurt, Middle-East and Dubai and the US and Dali, Silicon Valley and New York. Next, please. This is a quick roadmap of what we have been doing and achieved in all these years. The first 10, 12 years are more foundational and the real growth started after 2010 onwards. That is when we went to you know class facility in specialized art in SEZ in and then we went public in 2017 acquired a couple of companies on the way and then we almost touched INR400 crores in 2023. We have onboarded Sanish as an advisor to the Board. He was ex the CEO of and then just this month, we have onboarded as Chief Revenue Officer in the Bay area. We also achieved a CMOI level 5 maturity level for our project development processes. We took numbers out here. Very large companies is one of the USP. We have about 29 large enterprise clients that we work with. These are either billion-dollar businesses or billion-dollar valuation businesses. 90% is the repeat business for us. So that helps us through peak time trust, the great amount of trust that client has on. We have done two successful acquisitions. There are 300 members who are with us for five years in plus. We are listed on both the stock markets. Financial nine months for of crores in the vending, INR60 crores in EBITDA, INR28 crores. In PAT, INR242 crores of cash-and-cash equivalents that includes INR76 crores of AR accounts receivable. Mostly are good and we’ve been doing a CAGR of 26 sessions in last five years. Several awards and partnerships that I mentioned here, worth-mentioning our sales force partner and service now premium partner. We have — we have been receiving awards great to work for many, many years. We are also best companies for women in India. To work for multiple times and recently-acquired — got My Level 5 award as well. These are the areas that we focus on, enterize software services or another cloud, user experience and design work, rapid prototyping ability, which is a special ability that we have. AI-enabled solutions around generative AI, GitHub, co-pilot and so on. Platform solutions like Salesforce and ServiceNow Consulting and then RPA automation, DevOps, DevOps, CITD work. So these are the abilities that we offer to our customers globally. Next, please. So some of the key updates for the quarter, we got CMMI level five appraised this quarter. Six clients onboarded, two European customers, it’s a large enterprise, two US-based large enterprise and two US-based SMEs. Onboarding I just mentioned sponsored World Forum in Dallas. We are actively playing in it in the service now and Salesforce area and collectively picking-up conferences where we actively participate as responsors also. Participate in the voice, a good number of customers are standard compliance companies. So we are active in that space as well. On the ESG and front, we continue to do our contribution. Next, please. This is the Board of Directors. Next. Again, very highly are experienced core team which we are very proud to have, they are big tired at and they are the leaders who are responsible for growing the business on Excel. The new one joining on the board. He was working as a Head of Salesfor, Jay Globally in the US and now he joined us. Brings 30 years of experience in sales, marketing and business development particularly in the IT services now the clients they are with us for quite a long-time. The average age for our longest — large customers is on an average is 90 years. 90% of clients are to be customers and it goes a long way in terms of establishing our credence with the customers. A quick look at the numbers. December ’23 versus December ’24, Y-o-Y, we have grown by 6% on revenue side, 12% on EBITDA side and about 27% on PAT side. There might be some rounding errors there. So 3% might seem like 2%, but it is because rounding like the percentages are different but we will see the details we look at the next slide. Yeah, here are the actual numbers and without. So if you look at it our revenue from operations has grown by INR8 crores from 89 to 97. However, it is slightly lower as compared to September ’24 quarter. Other income has reduced to INR3 crores from INR5 in December ’23 and the total revenue is INR100 crores in December ’24 as compared to INR94 in ’23. It is slightly lower as compared to September ’24. The December quarters are usually lower quarters in terms of the billing availability and the number of billing hours available for the month or the quarter because of the Serra, Diwali holidays in India and then Thanksgiving and Christmas holidays in the US. Plus a couple of customers do a two-week shutdown towards the end-of-the year in the — from 15 — 16th of December to 31st of December, they do a shutdown. Therefore, there cannot be any billing that can be done for these customers. So because of these drop-in billing hours that billability is lower and then the revenue is lower. So this is usually the case every December quarter, we will see a lower number as compared to the previous quarter. So nothing to worry in that sense. In fact, I find it extremely good that we have been able to move the needle significantly from INR99 crores to INR99 crores and between December to December quarters. EBITDA has also slightly improved and same is the PAT, we have been able to improve that. Note that our approval cycle hit in October and therefore this quarter has the impact of increase in payroll cost across the company. And despite that, we’ve been able to have a better margin as December ’23. So better utilization and the cost optimization efforts have yielded some good control on the cost so-far. Thanks. This is a breakup. Interestingly Europe is increasing the pie it’s the size of its pie. Usually a year-ago I would say 80% was US, 10% was Europe and 10% was UAE plus India. Today, both UAE and Europe are increasing their shared in the past and US is slightly reduced. By segment, we are more or less 50-50 between digital transformation product engineering. And by business, Cloud tech has shown a slight dip. It used to be 18% now 15% right now. Next please we talked about it next. This is the content I was talking about. We sponsored the ServiceNow while we went one forum in and here we have team from and and US putting together the show. We are to the Standard development conference and to which is the standard body. We participated in a coding we hosted a coding for students of high-school which was the largest school high-school conference in and very good experience really love being coding experience we have a where we are planting a tea tree for our partners of each of our team members. So the score of planting 346 trees in last quarter this is commission anyway as of 31st December next week. We have open the question-and-answer and I’ll ask for Subi to coordinate Subi and going to coordinate.
Questions and Answers:
Mridul Maheshwari
Participants can kindly raise their hands to ask the question. We would request you to limit your questions to two so that we can address as many questions as possible for the participants? The first question comes from the line of Rajesh. Rajesh, currently ask a question.
Unidentified Participant
Yeah, good evening. My question is like once the — your profit — after tax margins are very less as compared to year-on-year. So will this trend continue or can we see an increase in the profit-after-tax margins?
Avinash Sethi
I didn’t get the question. You say profit is less?
Unidentified Participant
And profit-after-tax margin I’m talking about. It is — I think that if you see the year-on-year figures and it’s quite low. I understand on sequential basis it is on little, but year-to-year basis.
Avinash Sethi
The PAT the PAT margin we are working hard to improve it.
Unidentified Participant
Yeah.
Avinash Sethi
And if you look at the September quarter, we will do much better.
Unidentified Participant
Correct.
Avinash Sethi
I think it is also to revenue. If we can — if we have any increase in revenues, all of that will go to the PAT, how more or less it will go to the. So we are, I would say, running a very tight shut at this point in time where most of the cost is, you know, adding to the revenue. Most of the cost is contributing to generated revenue. And anything additionally that we generate on the revenue revenue side, we’ll be able to go back to the PAT. That’s one-way to look at it. The second way to look at it is, since we have intangible assets on the books and by way of acquisitions of two companies. We have a significant portion of amortization that we do every year.
Unidentified Participant
Okay.
Avinash Sethi
And I think every six months we population a number of the real cash heading into the books versus the PAT. So we do a much better cash accumulation over the years. And best of the — I think the best way to look at is the EBITDA margins. Are we improving on EBITDA margins or not? And the target is to stay around 23% 24% EBITDA margins. And as I said, any increase in revenue would immediately add to the EBITDA margin EBITDA margins. So PAT is not a very good picture of what the business is. Another factor is we have certain units which are tax jump and certain units which are not tax jump. So at some point in time, some unit generates more profit and other units don’t generate in a profit. So it depends on which loan it is generating more profit and whether it is highly tax or it is lower tax. So again, PAT middle is almost leading at this point in time. EBITDA is a better indicator.
Unidentified Participant
Okay. And the second question is like I think we onboarded six new clients. So what would be the revenue contribution from these new clients?
Avinash Sethi
See, we are a services company and typically any new client that starts with us will start with a small project. And these projects typically, when I look at all these six clients, we probably are looking at 100, 200,000 work of work to begin with 100 and eventually it increases. So it is kind of a test of services and test of business when they give small work to begin and then it flies off quickly.
Unidentified Participant
Okay. Okay. Yeah. Thank you all the best. Thank you.
Mridul Maheshwari
Thank you, Rajesh. The next question comes from the line of kindly ask your question.
Unidentified Participant
Yeah. Hi, Avinash, how are you?
Avinash Sethi
Yeah. Very good.
Unidentified Participant
It’s good to see the growth in over the last few years. There has been growth. So that’s very good. I just had a few questions. So what was the net change to our employee count this quarter have we — has there been any net change or.
Avinash Sethi
Yeah. So we reduced our net count by-40 people, 43 people to be sized.
Unidentified Participant
Okay.
Avinash Sethi
Yeah. So we have done a bit of a cost optimization here?
Unidentified Participant
Okay. And the second question was on the CMOI accredation of level 5. How do you see that flowing down into revenue and profit growth over the next few years. If you could just explain that, that’ll be great.
Avinash Sethi
It is difficult to put a number to it, Devansh. What happens is when you are — it’s kind of a credibility in answer, right? So we were growing well in the CMMI level three, but did we grow well between no certification to CMMI level three certification? Definitely yes. Was it purely because of CMMI level three? The answer is no. Whether we are going to grow from CMI level three to level 5 in terms of revenue only because of that the answer will be no. But does it really help? It certainly yes. So it is very difficult to put a number to it, but yes, it is enhancing the credibility of your presence. So when I’m going to pitch my company to a new customer, they’ll be happy to see that a level 5 company and I have at least get a chance to be heard. So that opportunities are better, but whether I can attribute everything to or attribute any number to this, it is difficult.
Unidentified Participant
Okay. Got it. Thank you. Just the last question was, are we continuing to look for acquisition targets? And has there been any update? Because two quarters back we were looking into expand into AI offerings and we’ve partner with a company there, but are we also looking at any acquisitions? And if you could just explain your thought process behind the acquisition pipeline.
Avinash Sethi
Yes, we do. We continue to look at acquisition opportunities and I think we have maintained our stance that if it is suitable and it is falling in our fitment, then only we will acquire and not acquire just because we have money, just because we are not growing organically or just because the market is putting a lot of pressure on us, we will not do that. But the right treatment and the right value is what we are looking at. We are very actively searching for companies in ServiceNow and Salesforce space. But yeah, we have not been able to close anything so-far, but it is still a part of our active strategy.
Unidentified Participant
Understood. Thank you.
Avinash Sethi
Thank you very much.
Mridul Maheshwari
Thank you very much. Our next question comes from the line of Sashi Bushin. Sashi kindly ask the question.
Unidentified Participant
Hi, team. This is. Two questions. Are you able to hear?
Avinash Sethi
Yes.
Unidentified Participant
Yeah, my first question is last quarter you told actually next coming quarter, like September to December, you told Max margin 1% or 2% will drop, but I can see almost 4.5% drop, actually operating profit 19% to 14.5%. On the two you mentioned, I think you ignored some Indian projects actually because the project is not generating margins, correct? But here you can say almost to 4.5% operating margins. It all the app prices, but it won’t impact something like the 2 max 2% to 3%, but I can see able to see 4.5% margins. Yeah, can you elaborate?
Avinash Sethi
See, there is an impact of the — there is a — let me give you a number. There is about INR3 crores of quarterly impact because of the. Now if I were to look at the revenue, we have seen a drop of INR3 crores from the last quarter. So had we been able to maintain a similar top-line, that would have very little impact on the bottom-line. I also mentioned that we reduced the headcount by about 43 people. So we would have saved some money from there as well. However, having said that, the idea is not to reduce the business size. The idea is to improve the business side. Now we have hired Hermeet as CRO and we’ll have more salespeople coming and joining us. So that will impact the margin definitely for that quarter. But if I were to look at a longer period, at least, let’s say, 12 to 18 months, we’ll be able to recover everything that we have spent in the initial quarters in order to grow the business. So I don’t think a business can be run on a quarter-to-quarter basis. Business has to be seen in the light of the investment that we’re making and how it is going to create an impact in the longer run. 1/4, one client — good point client in a quarter can change the margins very, very quickly. But if I were to look at a pattern over the longer period, then only I will be able to justice the — our decisions and the business that I’m doing here. So I think it is difficult to put a ready maintain that mathematical progression quarter-on-quarter. It is always going to be up-and-down, but in the longer run if you draw a line, then we will find a trajectory going-in a certain direction, which is the business direction of the business.
Unidentified Participant
Yeah. My last question actually. I can see Invo been I think that time as investor, it was very good. I can say ’21, ’22 March. It was awesome actually, 22% 24% actually margins. So can we expect at least 20% margin coming two to three years at least margins because nowadays we are able to see max since last two, three years, 17% to 18% only correct? But it was, 21% ’22 we can see. Yeah.
Avinash Sethi
Yeah, we are striving for that session. We want to have our EBITDA margins cross 23% 24% and that is our goal. We want to achieve that number. But at the same time, as I said, we want to achieve that number in a sustainable basis and therefore, whatever investments that are required to reach that kind of a positioning, we continue to do that and that would mean that there might be pain in the short-term, but it will recover in the long-term. Now if I go back to the time we are talking about in the year ’21, ’22, that was a time there was a great demand coming in. People were working remotely. At the same time there was a great demand of team members also. So both business was flying high as well as both on the revenue side and as well as on the people side. Now what has — what this has created is a very-high cost environment for IT industry where the developer cost has almost doubled in just less than less than two years, I would say, between ’22 to ’24, the cost has almost doubled. Now in that environment, obviously, we cannot maintain the same margin just off the bat. It has to — I mean, we are passing on the cost to the customers slowly and gradually. And the results are — we’ve seen in the last 3/4, the margins have started to show improvements. Even though the revenue is not growing as fast, the margins are growing faster. So that is a good news in a sense that we are going-in the right direction. So now how soon can we reach 24% and whether you’ll be able to maintain that EM quarter-on-quarter? I think it will still take some time. Hello.
Unidentified Participant
Yeah. My last question actually only one question is pending. You told I think I’m during since last two years. Hello, are you able to hear? Hello are able to hello.
Unidentified Speaker
Hi, hi. Are you able to hear me?
Unidentified Participant
Yes, yes, I’m able to hear. Yeah.
Unidentified Speaker
Shashi, I think they have unmuted me and I think there is some issue on the management line.
Unidentified Participant
Okay, okay.
Unidentified Speaker
Hi Avinash hello I am not able to hear anything from your side I think you guys are muted I can yeah hi, Avinash.
Avinash Sethi
Yeah.
Unidentified Speaker
Yeah, you can hear now, right? I think there was some issue in-between.
Unidentified Participant
Okay. So I have three questions broadly. So one question is, I mean with — in US now, there is talk of animal spirits in the economy are back, business confidence has gone up by 30%, 40% like that. So how — I mean, I — how is the environment now? Do you — do you think now that in calendar ’25, there will definitely be revenue growth which will be, you know, more closer to our historical run-rate. Are you now at least seeing the environment is supportive? That is question number-one. Question number two is, can you give me the utilization level now of our manpower? And question number three is, can you talk about Agenio? I think Agenio was I think $1.5 million business, I think in Q1, if I have my numbers, right? So where-is that business? How is that business scaling up? So if you can address these three questions?
Avinash Sethi
Yeah. Thank you, Rupesh. To talk about the animal spreads, I think it is more talk than the reality. Again, the media can always extrapolate certain situations with a lot of biases that they would have. But I think the — the cautious — Mamood is still cautious in my mind. Our customers are definitely looking positive because term has always improved corporates. So their environment is definitely there. I don’t think it is animal spreads anywhere to be seen at this point in time. But regardless of that, the environment is better as compared to what it was six months ago. So that is one. The second thing is about utilization levels. So we are at 79%. We are striving to improve it further. And the third thing is on the, is doing well. I don’t know if I gave you any number and even if I have given you any number, it will be more of annual expectations. What has happened is we’ve struck another relationship with a parent of, which is called as Materna. Materna is a group company which does IT services in Germany. And is a subset in the subsidiary of Materna, which is focused only on ServiceNow. So now we have two-level of relationships. One is with only on service now work and second is with Materna for multiple IT services work. So we are exploring with them whether we can work on design services, we can work on IT services related to all the open-source technologies, also on AI related work. So multiple levels of partnerships are being struck both at the child and the parent-child. So that’s a good development. And you can see the European market, which is German revenue is almost doubled from what it used to be a year-ago. So yes, good progress in that front. And with now we are hoping that we will be able to generate more sales from all the three geographies combined because we are investing heavily on the sales side for US, for Germany and for Middle-East.
Unidentified Participant
Okay. Okay. And then maybe if I can ask one or two follow-ups quickly.
Avinash Sethi
Please come in the queue, I would say, Rupesh.
Unidentified Participant
Okay.
Avinash Sethi
Yeah. Thank you very much.
Mridul Maheshwari
Thanks,. The next question comes from the line of Devansh Goenka.
Avinash Sethi
Devansh has already spoken if you heard somebody else, please have it.
Mridul Maheshwari
The next question comes from the line of Mitesh Gandhi. Nitesh, kindly ask your question?
Unidentified Participant
Hello. Can you hear me?
Avinash Sethi
Yeah, Vitesh.
Unidentified Participant
Yeah. I just want to know what is the other income? Basically it is interest-only or what?
Avinash Sethi
It is a combination of two things, interest income as well as any foreign-exchange gain that or loss that we get with the combination of two taxes.
Unidentified Participant
Because if we remove interest income, which is around 3 in December quarter, the profit-after-tax would just be a 4cr so major element is that other income in seven, almost 50% okay. So what we feel is that other income is 50% of our total profit-after-tax.
Avinash Sethi
Okay.
Unidentified Participant
So I mean then what is the business is earning.
Avinash Sethi
The other income money that the INR165 crores has come from the business five years.
Unidentified Participant
To be understood. But then now as of now we, if we just utilize that cash, then the profit will be a much more higher actually because we are showing that we have a cash balance of INR290 crores, something like that.
Avinash Sethi
That same, Mitesh, that’s what I’m saying. We can’t look at the business quarter-on-quarter.
Unidentified Participant
Yeah.
Avinash Sethi
See, I mentioned, we can’t build customers in the holiday season. Now that does not mean that the business is not doing good, right? So if I’m you got to live with those right look at, look at September 24, you know there is a PAT of INR13 crores and other income INR4 crores. There is INR9 crore or 98 crores. Is that good?
Unidentified Participant
Yeah. And I just want to know, I know the market price is different than what the business, but because today result is published and it has given the impact on the share price directly.
Avinash Sethi
The share price is a different matter altogether.
Unidentified Participant
Yeah, we understood, but since today, the result has been declared and we consider that this is what this other income if we remove this business and it has been impacted. It is showing the share price directly when we release the results.
Avinash Sethi
I can’t really comment on that. Okay.
Unidentified Participant
Okay, fine. Thank you.
Avinash Sethi
Do you want to emphasize on the EBITDA portion that generates the cash?
Mitesh Bohra
Yeah, I mentioned earlier also, PAT is not the right number to look at. You should look at the EBITDA number, which is telling you how much is the business rating on the operating side. And there is a significant portion of amortization that is also causing the PAT to reduce. So that is how it should be looked at. Even if you look at INR18 crores of EBITDA, remove INR3 crores of other income from there, INR15 crores of EBITDA on INR97 crores. No, I would find this problem here. Same goes with September ’24, INR19 crores INR98 quite a decent number.
Mridul Maheshwari
Thanks. The next question comes from Vikul Arora. Vikul kindly ask your question.
Unidentified Participant
Yeah, hi. Am I audible?
Avinash Sethi
Yeah.
Unidentified Participant
Just wanted to highlight that I’m not considering from quarter-to-quarter. If I look at the June Q2 FY ’23 to current quarter, it’s been around nine to 10 quarters. Our top-line is not good like we were rounding around INR95 crore to INR100 crore. So if I compare with any other peers to the small to mid to large-cap, our revenue is not going somewhere else. If you can throw some light.
Avinash Sethi
I agree with you. Yeah, I agree with you, Vikul, on that. And we are equally upset because of that. We have been trying multiple things and there have been one or the other clients moving away which is causing this pain. But at the same time, we’ve been able to get new clients, which are able to fill the gap. However, the end result remains the same that we are in that INR25 crores to INR100 crore range. Totally understand and totally agree with you. So as I said, we are equally are upset with that. And therefore, if you look at the kind of changes that we are doing, including people like to guide us whether — where are we going wrong, what are we missing, what are the things that we should be doing? How should we change the strategic direction with geographies to focus on, which offerings to focus on and we have made those changes. We got CRO, as a chief executive role C role three suite role and he is now a CRO at the America region. So all these changes are in-line with what you are saying which is also trying to see how we can break this orbit and move to the next one. So we have been working on these direction. And I agree with what you’re saying. It’s like around not even June, I think the March ’22 is till December ’24, we are in that was 90s, if I were to talk about that. But yeah, I was painfully aware of that. We’re working hard in terms of changing and breaking the.
Unidentified Participant
So I can assume like the same thrust that we were having at that time, same we are having now. We are not having any kind of, you know, mindset change.
Avinash Sethi
I didn’t get it. What do you mean by that?
Unidentified Participant
I mean saying way we were doing the acquisition and growth at 2022 that time. We are also working towards in the same goal. That’s what my question.
Avinash Sethi
See, see, as I keep mentioning that I probably have done it in the past also. See as founders it is gross injustice to us and to our shareholders if we are not investing in growth.
Unidentified Participant
Yes.
Avinash Sethi
Now there does not mean that from March ’22 to December ’24, we have not invested in growth. We did. And we didn’t succeed in certain ways and certain methods. Therefore, we are getting more experienced people in the business and seeking their guidance and how to correct this particular hurdle. And that is the direction that we are taking. Obviously, we are committing you know a lot of I would say resources to it and hopefully you know this will change certain things in the time to come. But we are — we are restless and we are, you know upset. We are willing to crack this open and go to the next orbit and we are doing all that it takes, including the acquisition efforts. So yes, both organic and inorganic growth, we are investing heavily. And I think it’s probably a outcome will need to speak more than what I’m speaking. So there is nothing that I can add further at this point.
Unidentified Participant
All right. So related to M&A, earlier we had a kind of one or two pipelines, but in this presentation, we haven’t any kind of M&A pipeline. So we are not having any kind of company.
Avinash Sethi
There nothing worth-mentioning right now,, therefore, we did not put anything this time. There is nothing that is going on. We were positive about couple of pipe tries last-time and therefore, we used to mention that, but there is nothing at this point in time.
Unidentified Participant
All right. Thanks for your explanation. Thank you.
Avinash Sethi
Thank you. Thank you, sir.
Mridul Maheshwari
Thank you, Vikul. Just one last question which we would take because we are at the top of the hour. The next question comes from the line of Sagar Pulwani. Sagar, kindly ask your question.
Unidentified Participant
Hello, am I audible?
Avinash Sethi
Yeah.
Unidentified Participant
Yeah. Avina, sir, I just wanted to ask you on the similar question, like if you look at your EBITDA margin, so if you include other income with your EBITDA margin, then your EBITDA margin is 18% 17%. But then again — then if you exclude the other income part, then your EBITDA margin is somewhere 15%. So you once guided that your margins will — you have a mission to achieve an EBITDA margin of 22%. So I just wanted to know that, that EBITDA margin you are saying includes other income or excludes other income? And if so, like how — okay. Then how — are we done with the cost optimization part or we can look for the next full-year like a better cost optimization strategy.
Avinash Sethi
So we — it is a constant effort and you know we’ve been able to control the cost across all these quarters and we have a better handle. Having said that, we are investing in sales in all the geographies. So that will add-up to the burden of the cost. But we are hopeful that the increase in revenue will recover all of those costs in time to come. So we are constantly improving our optimization efforts and we want to increase our regulation levels beyond 80% — actually a target of 85%. So we are working constantly towards that. So there are that we are improving upon. And it’s a constant exercise. There is no — we can’t say that everything is done today and we will not find any new ideas and new ways to kind of reduce costs.
Unidentified Participant
And I just wanted to share a concern like you have posted a decent numbers to be frank for this quarter. But the thing is the thing is that there is a concern about capital allocation part because you have almost INR150 crores of kind of free-cash in your balance sheet and we have not made any acquisitions. So that is putting heavy price on the stock price because capital allocation is really important, which you know the ROE and all is getting very hampered. So I just hope that you work on that.
Avinash Sethi
Yeah. Yes, Sagar, we are painfully aware of that.
Unidentified Participant
Okay. Thank you.
Avinash Sethi
Thank you.
Mridul Maheshwari
Thank you, Sagar. Over to you, Avinash for the closing remarks.
Avinash Sethi
Thank you everyone for your continued interest in. Any questions that is left unanswered, please send an email to and we’ll be happy to answer. And I invite everyone of you to come and visit if you have time, if you are in Indor you know, we’ll be happy to have you and spend time with you in terms of explaining the business to you. I am in — anytime I’m in Mumbai or Pune or any of the cities that you are in, we’ll try and reach-out to you and see if we can do a quick session with you to explain the business never you. Thank you very much and feel free-to reach-out to us, we will be happy to answer any of your unanswered queries. Thanks.