Nucleus Software Exports Limited (NSE: NUCLEUS) Q3 2025 Earnings Call dated Jan. 29, 2025
Corporate Participants:
Vishnu R Dusad — Managing Director
Parag Bhise — Executive Director and Chief Executive Officer
Tapan Jayaswal — Head -Global Revenue Assurance
Poonam Bhasin — Associate Vice President and Company Secretary
Surya Prakash Kanodia — Chief Financial Officer
Ashish Khanna — Chief of Staff to MD and Chief Marketing Officer
Abhishek Pallav — Vice President – Engineering
Analysts:
Vaibhav Badjatya — Analyst
Sanjay Khe — Analyst
Grishma Shah — Analyst
Vinay Nadkarni — Analyst
Jyoti Singh — Analyst
Rahul Jain — Analyst
Samarth Singh — Analyst
Artik Gora — Analyst
Lakshay Agarwal — Analyst
Presentation:
Operator
Good afternoon, everyone. This is. A very warm welcome to all of you for this Nuclear Software earnings conference call for the quarter and nine months ended on December 31 December 2024. For discussion, we hear from the management team, Mr Vishnu R, our Managing Director; Mr Parav, CEO and Executive Director; Mr Surya Prakash Kanodia, Chief Financial Officer; Mr Kanna, Chief of Staff and Chief Marketing Officer; Mr Mukesh Bangia, Vice-President; Mr Abhishek, Vice-President; and Ms Vati, Chief Human Resource Officer; and Mr Tupan Deshwal, Finance and Controller. As you all are aware, Nuclear software does not provide any first week revenue earning guidance, anything which is said during this call, which may reflect the company’s outlook for the future or which may be constructed as a forward-looking statement must be reviewed in conjunction with the risks that the company faces. An audio on the transcript of this call will be shortly available on the Investors session of the company’s website, www.nuclearsoftware.com. With this, we are now ready to begin with the opening comments on the performance of the company and post that we will be available for the questions-and-answer session. With this, I now pass it over to Mr Vishnu. Over to you, sir.
Vishnu R Dusad — Managing Director
Thank you. A warm welcome to all of you to this conference call on our performance for the quarter three and FY ’25. We are really happy to let you know that the quarter has been a reasonable quarter and we are looking-forward to more exciting news in coming quarters. With those words, I will hand it over to.
Parag Bhise — Executive Director and Chief Executive Officer
Thank you, Mr, for opening this call. A warm welcome to everyone who has joined the call. I would like to reiterate that the initiative that we have been talking about in the past few quarters of is continuing and we are also starting to observe some initial benefits from the field format. Some of our customers have also started to noticing it. So we are committed to this and we expect that these kind of initiatives will drive us a significant property gains in the quarters to come. Thank you so much. Thank you very. And I would hand over to Tapan now to give the financial update. Tapan, over to you.
Tapan Jayaswal — Head -Global Revenue Assurance
Thanks,, and good afternoon, everyone. As for revenue, our consolidated revenue for the quarter is at INR205.7 crore against INR202.2 crore quarter-on-quarter and INR204.1 crore year-on-year. Overall revenue in foreign currency, including India rupees revenue is US dollar 24.4 million for the quarter against US dollar 24.1 million quarter-on-quarter and US dollar 25.1 million year-on-year. Product revenue for the quarter is at INR174.8 crore against INR171.4 crore quarter-on-quarter and INR175.4 crore year-on-year. Revenue from project and services for the quarter is at INR30.9 crore against INR30.8 crores quarter-on-quarter and INR28.8 crore year-on-year. As for expenses, cost of, including cost of product development for the quarter is 70.7% of revenue against 71.4% of revenue quarter-on-quarter and 61.8% of revenue year-on-year. In absolute terms, this is INR145.5 crores against INR144.4 crores quarter-on-quarter and INR126.1 crore year-on-year. Marketing and sales expenses for the quarter is 5.6% of revenue against 4.5% of revenue quarter-on-quarter and 6% year-on-year. In absolute terms, this is INR11.6 crore against INR9.1 crore quarter-on-quarter and INR12.3 crore year-on-year. G&A expenses for the quarter is — sorry, 7.6% of revenue against 8.5% of revenue quarter-on-quarter and 8.9% year-on-year. In absolute terms, this is INR15.6 crore against INR17.2 crore quarter-on-quarter and INR18.2 crore year-on-year. EBITDA for the quarter is at INR33 crores against INR31.5 crore quarter-on-quarter and INR47.4 crore year-on-year. Other income from investments and deposit is at INR14.8 crore against INR18.5 crores quarter-on-quarter and INR11.8 crore year-on-year. Total other income for the quarter is INR15.6 crore against INR19 crore quarter-on-quarter and INR12 crores year-on-year. Total taxes are at INR10 crores against INR13.5 crore quarter-on-quarter and INR14.6 crores year-on-year. Net profit is at INR35 crores for the quarter against INR33.1 crores for the quarter-and-quarter end and INR41.3 crores in year-on-year. Other comprehensive income is at negative INR1.7 crore for the quarter against negative INR2.7 crore quarter-on-quarter and INR1.6 crores year-on year-on-year. Total comprehensive income, which includes net profit and other comprehensive income is at INR23.3 crores for the quarter against INR30.4 crore quarter-on-quarter and INR42.9 crore year-on-year. EPS for the quarter is at INR13.28 as against INR12.35 quarter-on-quarter and INR15.43 year-on-year. In terms of foreign currency hedges on December 31st, we had QST INR4.25 million of forward contract at an average rate of INR84.95%. There is a mark-to-market loss of INR0.6 crores, which is equal to hedging business in the balance sheet. Revenue contribution from the top-five clients for the quarter is 28.1% against 28.2% in the previous quarter. Total cash-and-cash equivalents as on December 31st are INR877.9 crore against INR895.1 crores as on September 30. This includes balances in current accounts of INR33.6 crores various schemes of mutual funds INR613.8 crores, fixed deposit of INR196.4 crores, investments in tax-free bonds of INR34.1 crores. With regard to receivables, we are at INR109.6 crores against INR99.7 crore previous quarter. During the quarter, there is a gross addition of fixed assets of INR2.45 crores, consisting primarily of INR1.17 crore corporate servers, INR0.69 crore on software, 0.56 crores furniture pictures and INR0.03 crores on office equipment.
Poonam Bhasin — Associate Vice President and Company Secretary
Now I hand it over to Punam.. So, you can take the question-and-answer session.
Questions and Answers:
Operator
Thank you, ma’am. Thank you, ma’am. With this, we are now open for the question-and-answer session. If you wish to ask a question, please press 1 on your telephone keypad and wait for your name to be announced. If you wish to cancel your request please press and 1 again. I repeat if you wish to ask a question, please press tar and one on your telephone and wait for your name to be announced. The first question comes from from Honesty and Integrity Investments. Please go-ahead.
Vaibhav Badjatya
Yeah. Hi, sir. Sorry, I missed the order book number, if you can repeat that. And secondly, the number of employees for September ’24 quarter-end and December 24 quarter-end. That’s it from my.
Surya Prakash Kanodia
Yeah. So this is Surya here, thanks for your question. So the order book that we have to be executed in the remaining part of the is in the north of INR700 crores. So that is on the order book side. And in terms of the employee size, by end of September, it was around 1938, which was reduced to 1903 by December end.
Vaibhav Badjatya
Yeah, that’s it from my side. Thank you.
Operator
Thank you. Next question comes from Sanjay Khe, an Individual investor. Please go-ahead.
Sanjay Khe
Hello, good evening, sir. I just want to know-how many new customers have added in last quarter and how the traction looks like? I do not want exactly — I mean any guidance or numbers, but how the traction looks like for the Q4 and going-forward
Ashish Khanna
Hi, Ashish thank you for the question sorry, can you hear me?
Sanjay Khe
Yeah, I can hear you now right.
Ashish Khanna
So a lot of traction when it comes to our upcoming banks and NBFC in terms of digital transformation. We are getting lot of traction not just in India, but in different countries, including Southeast Asia, Middle-East, Australia, so we are — we are in-kind of a close coordination with all the stakeholders in different institutes and we are very optimistic about some good number closer by end of this financial year. So we are very optimistic. And I think the new text check is coming out well and we are getting a very positive feedback from the customers who are using it and getting the value out of it. How about the new customer added in this last quarter? So as of now, since this sales cycle is a bit longer. So we are still in-kind of a closer stage. So I won’t be able to comment on that number right now. So we are still kind of in a very closer stage. But yeah, so to answer that, I think a lot of good traction, but our sales cycle is a little bit longer as compared to previous years. So I think it is taking a little time, but I think we are in a good shape.
Sanjay Khe
All right, yeah. Wish you all the best.
Ashish Khanna
Thank you.
Operator
Thank you thank you. Next question comes from Grishma Shah from Envision Capital. Please go-ahead.
Grishma Shah
Yeah, thank you for giving an opportunity. I want to understand across our key products, if you could, you know give some color as to how the growth has been online itself how is the order book breakup between these three products
Vishnu R Dusad
Yeah, you’ll need to repeat. We could not hear the question clearly.
Grishma Shah
Yeah. So I am keen to understand how the three products have said on a nine-month basis for us and what does it look like in terms of our order book going ahead.
Ashish Khanna
So I think if I — if is said, if I understood your question, you are want to understand how is — how was the nine months, right, for us in terms of the product business, right, on both the lines the new and for next year. So I think as I mentioned, I think it’s been a very, very good and a positive financial year for us till now. And a lot of our products are — a lot of our customers — existing customers appreciated the new features and new product offering which is bringing on-table, especially with respect to the value we are adding in improving the efficiency at the bank front or NBFC front and also helping them in an agile way to offer new financial product to the market. So I think we are getting a good traction. Similarly, for the new customers, with our lot of participation now in lot of different industry events, we are getting a lot of queries from different players in different geographies where we are also very optimistic. Some of them are good big player who are — are — who want to transform their from the legacy system. So we are very hopeful about the time which is ahead of us in terms of transformation.
Grishma Shah
Okay. So I believe that we have taken a substantial price increase in one of our key products and we were waiting for their acceptance of the customers over the last three to four quarters. And now while I understand that there has been a good response, is there a roadmap to which you can say that over the next two to 3/4, we will start seeing growth in a yearly unit number for the product or it is still some time given the longer products, longer conversion cycles from the customer.
Vishnu R Dusad
Yeah, the additional year as we have been maintaining all these years, we do not give any guidance as such, but at the same time, we remain highly optimistic about our future.
Grishma Shah
Did that, but you know, is there an acceptance even in the top 5% of our customers in terms of our price increase? What’s the color on that? If you could give us some sense on in that?
Ashish Khanna
Sorry, you will have repeat. What did you want to know about price increase?
Grishma Shah
Sir, we had taken a price increase in our key product, right, the first two months. So I mean, how is that acceptance? I mean, what percentage of our customers are accepted or converted to the new platform? If you could give some color on that?
Ashish Khanna
Okay. As far as that is concerned, you know, we had price increase on our existing platform because as we have been mentioning, it was — the prices were ultra-deep discounted. We have — and our customers have been understanding enough to realize this point and they continue to look-forward to you know, implementing our new solutions as well. Some of them are getting implemented already and the others we are confident would like to implement and derive benefits out-of-the new products.
Grishma Shah
Okay, because the BFSI product space across various companies is seeing a phenomenal growth for the current environment. So I’m just trying to calibrate that maybe next year is when a larger percentage of our customers have accepted the new products and you would start seeing growth. Is that a fair assumption?
Ashish Khanna
Yes, that’s a fair assumption.
Grishma Shah
Okay, okay. And in terms of order book, this is executable over what time sale,
Ashish Khanna
I think over a five years
Vishnu R Dusad
, yeah.
Ashish Khanna
I have different phases for different customers, but on an average, you can assume around three to five years.
Grishma Shah
Okay. And the initiative that you have been talking in your opening remarks, I mean, what is it pertaining to and what are the specialty — numerical benefits that you would deny was yeah
Vishnu R Dusad
. Yeah. Thank you for that question. Very important. So we have updated in the past, essentially the organization has adopted lean journey in a way. Lean is a concept you would all know from manufacturing, it was initiated by and was adopted in various manufacturing units and now service companies are also adopting it. So we have also adopted this concept it. It’s a it’s a it’s a change management process we look at essentially anything and everything in the company, whether it is engineering, whether it is implementation, whether it is HR processes, sales processes and look for improvements in that. So these are — so we have for the current year going, we had a prioritized five to six initiatives which are primarily customer-focused in terms of improved SLA, improved turnaround times so those kinds of initiatives and on which we started to see now some benefit. Essentially, these are in terms of productivity improvements, reductions of wastages, etc.
Grishma Shah
So will that lead to improvement in our operating margins or gross margins or the reduction in headcount? How do you quantify that?
Ashish Khanna
Okay. So reduction in headcount is something which we’re definitely not looking at, but definitely using the same headcount to do more-and-more work. Now it’s too early to say the when I said that we are getting some feelers that our customers are appreciating, it is more in terms of turnaround time and in SLAs, whether it is for deliveries or for fixes. Now for this to convert into financial numbers, I think it’s still some time away. But ultimately, yes, that is what we are expecting in due course of time. Is it like two years three or month? It will be difficult to say it in that terms, but I’m sure yeah, three years is a reasonable time, but how much we can’t quantify right now, but we are all very excited about the reserves that we are seeing on some of our engineering and process improvements.
Grishma Shah
Okay. Fine. Thank you and good luck.
Ashish Khanna
Thank you. Thank you. Next question comes from Vinay Natkarani from Atway Investments Private Limited. Please go-ahead.
Vinay Nadkarni
Yeah, good afternoon. Just wanted to check-out for the last — the last-time when you had increased the sales, it was in March 2023. Since then, your sales have been more or less the same between INR200 crores to INR205 crores every quarter. But your employee — employee expenses have continued to. Are you looking at newer areas of development, which can help you garner more revenues in future or how is this employee expenses rising so much your segment?
Ashish Khanna
Thanks. Thanks for this very meaningful question. The way I would like to respond, Vishnu, the way I would like to respond to this is, two is, one, our customers, as we have mentioned earlier, our customers are taking longer time to take their decisions and that is how the top-line has remained static for almost eight quarters. And the other aspect I would like to talk about is the employee expenses. We are confident, we are more and confident that you know, as our customers, prospective customers and existing customers start taking the, we will be able to leverage all the strength that we have in terms of our you know human capital and you know the investment that is going-in would be more than paid-off. So that’s how I would like to respond to this.
Vinay Nadkarni
Yeah, but are you like — are you looking at expanding your product base to add new products or are you looking at only one range of products that you are working on? Or any new products that you are wanting to add?
Ashish Khanna
No, as of now, we will continue to focus on these two sectors, that is banking and lending. However, areas like AI are something where they are substantial part of our existing human capital would start getting deployed in months and quarters to come.
Vinay Nadkarni
Okay thanks a lot. I’ll join the queue.
Ashish Khanna
Thank you.
Operator
Thank you. The next question comes from Joti Singh from Capital Markets Limited. Please go-ahead.
Jyoti Singh
Yeah. Thank you for the opportunity. Sir, I just wanted to understand on the customer decision side, like you mentioned customer is taking more time than expected. So what kind of feedback now we are getting if we have done like with the sales team, maybe had a discussion. So what kind of feedback we are getting when a customer will going to start taking the season faster, like now most of the things that was expected already happened on the macro side. So what’s your feedback on that front?
Surya Prakash Kanodia
See, typically the sense we get is that our customers want to be very cautious about the solutions that they’re choosing and hence their selection cycles have moved from typical six months-to a year, sometimes two years and so on. And that is about the only, you know, sustained feedback that coming.
Ashish Khanna
I just wanted to add another aspect that what we are observing is even for such decisions, now even boards are getting involved, which is something which we have not experienced in the past so that is one where all financial institutions now have IT steering community to make presentation. So that has kind of added to the cycle. That is one I think another observation.
Jyoti Singh
Thank you, sir. And also, sir, on the guidance side, as you mentioned, you are being optimistic. But if you can give us some idea what kind of visibility we are seeing for the company
Ashish Khanna
No, I don’t think we will like want to talk about any numbers because in our policy and we’d like to stick to that policy.
Jyoti Singh
Thank you so much.
Operator
Thank you. Next question comes from Samar Singh from TPF Capital. Please go-ahead. Okay, withdrawn his question. Next question comes from Rahul Jain from Dolat Capital. Please go-ahead.
Rahul Jain
Yeah, hi. I hope my line is audible.
Vishnu R Dusad
Yes, sir, thanks for joining in.
Rahul Jain
Yes, yes. Hi,, I have couple of questions. Firstly, you know, just to try to understand the environments and situations slightly better, you know, we’ve been seeing some challenges in terms of adding new customer decision-making and all is what you’ve been highlighting for some time. And recently, we also did some leadership addition in the Southeast Asia and ANZ market. So whether — first of all, to understand whether was this replacement and that’s why we had a period where we didn’t had this kind of a leadership or this is more like strengthening of, you know, manpower or from a sales point-of-view, that has happened with the induction of these two gentlemen in Southeast Asian.
Ashish Khanna
Yeah, clearly these are replacements. We did not have these positions filled for some time and that’s what we have done.
Rahul Jain
Right. So in a way is it safer to assume that a, the market is also not great and plus we had this kind of a gaps in the key roles, which also could have caused some opportunity misplacement
Ashish Khanna
That’s a very meaningful assumption to me
Rahul Jain
Right also since you know this situation may be evolving may in a slow and steady manner. Is there a change in stance we would like to do on our S&M side of the spends because that number has scaled-up quite materially, while you know in the interview we have not seen any progress on the — on the revenue side. So or do you think the need of the investment would mean that number would remain healthy while revenue will lag here
Ashish Khanna
We, we, we strongly believe that you know, our, our story has not been told at all. We are not to use a we are not going to rooftop and talk the shouted about our achievements. So we will need to continue you know, to talk about our achievements when, whenever we start talking about them only question we hear is where were you know these are the kind of remarks that we hear. So we will continue to focus on marketing and leading letting you know the audiences know the relevant audiences know what, what is it that they can get from us and post that I’m sure we’ll generate returns on the investments.,
Rahul Jain
That’s right. And in terms of EBITDA margin and of course, as you said, our investment might continue. But if you look at our profitability for nine months, it has now reached little over 15% mark, which is something we used to do in the previous decade as an average, but we did — we had a lot of plus and minus in this — in this last couple of years, where we saw a lot of movement. So you think this 15%, our long-term profitability is the right benchmark for us for the next couple of years or you think this is an over-investment and a weak year and our operating level of profitability is much better than this number.
Ashish Khanna
So we would want to move to profitability much better than this number. How soon that happens is — that remains to be seen. But clearly, this is not our benchmark. Being car to be much higher.
Rahul Jain
Yeah. So my question was more in terms of as a — as a leader, as a business leader, when you don’t see growth, would you go towards optimizing profitability for that period to ensure the base minimum level of profitability or you would see that in the interim, it could go to even a lower number than this and then it might pick-up when we see a growth traction.
Ashish Khanna
Okay, the way we would respond to that is, you know we — so we do not expect anything of that sort to happen, but if required for a quarter or two, it goes below this, we would allow that to happen, but continue to focus on the investments that we make for the long-term value that our customers equit from us. So we are making substantial investments in areas like AI and our solutions have now in some manner started delivering value to some of our customers using AI. So we will rather accelerate that in months and quarters to come.
Rahul Jain
Sure, sure. And just last one bit, which is more of a bookkeeping. I think there was this mention of INR700 crore order book number, it, it could be great if you could give the breakup in terms of product and services here.
Ashish Khanna
Okay. Yeah. So most of it is in-product — almost like more than 90% would be in the product territory, the balance is of the services. You said 90 or 95, sorry. 90 plus will be on the product side, the balance will be on the services.
Rahul Jain
Okay, thank you. That’s it from my side.
Ashish Khanna
Thank you.
Operator
Thank you. Next question comes from Samar Singh from TPF Capital. Please go-ahead.
Samarth Singh
Good afternoon. Thank you for the opportunity. We recently-announced a new deal. I just wanted to know-how many customers we have for post this deal now. So we — I mean, I think you’re talking about — so Ashish, you said you’re talking about Federal Bank going right, am I right?
Ashish Khanna
Right.
Vishnu R Dusad
So yeah, I think we get this deal a few months back, we are we replace their — we replace one of the solutions which was not giving them value enough for their corporate customers. So they have gone live absolutely on-time and I think that’s what Jonqui, both Federal Bank and UPS done a press release about that will — win or achievement in terms of going-live. And so we are growing very strong with them. And similarly, there are a couple of more deals when it comes to transaction monkey product, which is Finexia, which we are pursuing with some of the big banks. So we are seeing — definitely seeing a lot of tractions on that particular product. And definitely federal Bank achievement on-time delivery and quality delivery will also help us to get those deals faster. So that’s what we are kind of anticipating at this stage.
Samarth Singh
All right. I think historically, we focus a lot on Neo and at least for the last couple of quarters hasn’t really come up in the call. So I was just curious to know if you could one — I mean, I think our number of customers we have are far fewer than the Fin1 new customers. So if you could talk about why that is, why has not been able to scale-up and why we would not be able to cross-sell towards in one new customers? And do you see any changes happening in that — in the near-future?
Vishnu R Dusad
Yeah. Right. So maybe you know, so let me talk about the product a little bit. So is a very different product which dealt with the corporate customers and mostly big banks and institutions require this kind of a product. And today, if I talk about — I’m not talking about the number of customers, we definitely talk about the kind of a transactions it is handling. So we are handing more than $15 trillion worth of transactions a year from through this platform. So we also talk about the size of the kind of a volume this platform is ending today and we are operating with this platform in 20 countries as of now, right? And I think we are with the — with more digital journeys, digital payments coming into the ecosystem, not just in India, but across, I think we are seeing ourselves very well-placed in picking-up those deals and in bringing those two efficiencies or enabler — unable to the banks and institutions so that they can kind of process those kind of volumes and heavy payments with a robust solution. So I won’t compare it with the number of logos from Finland Neo because it’s a different product. But in terms of value, I think we are seeing a lot of traction, lot of value and we are hopeful that with — now with more focus on the digital prevents, we will be able to make more reach of this product to different financial institutions.
Samarth Singh
Just wanted clarification on anything this product is not a new product, right? It’s been there with us for a long-time. I’m just wondering if something has changed either in the product or in our marketing that is that we expect now to better going ahead.
Vishnu R Dusad
So changes are on both side. I mean, one, we have also rearchitect our product. So it is now API first strategy in the technical architecture front. So product architecture definitely got enhanced with lot of new features and new functionalities, around an architecture. Second, I think the market as a question about the market, market also is showing a lot of responsiveness when it comes to digital payments with a direct focus from lot of governments from different countries. So we are also cross-border payments. So we see a lot of tractions from both the sites. One, we have also changed ourselves from a product standpoint and second, market is also becoming more responsive, more open to such kind of a transitional transformational projects or products production.
Samarth Singh
Got you. Okay. And just a question on our profitability. It seems like the domestic business has the most steady profitability our profitability at this — I mean in terms of the bottom-line, there’s slight fluctuation, but more or less stable, while all the other geographies seem to have a lot of volatility in terms of profit, sometimes you know a large profit numbers think to sometimes negative. So could you just help us understand why that happened? And did we see any of the other geographies becoming more stable like our domestic business?
Ashish Khanna
Yeah. As you understand from our — our response to the previous question, we did have challenge in terms of the sales and account management bandwidth for some time and that is what has resulted in a uneven profitability in some of the geographies. But going-forward, we are confident that we’ll be able to maintain and further grow the profitability.
Samarth Singh
But this is just a pushback on that, this is not an even phenomenon, right? It seems and profitability have been — have been around for many years now in the non-domestic business. So I mean, is it more that — is it less — is it more implementation revenue in those geographies and that’s of sort it varies from geography to geography
Operator
Dear participants kindly stay connected while we connect the management team back on the call. Dear participants kindly stay connected while we connect the management team back on the call welcome back the management team. Please go-ahead, sir. I’m not too sure till what time you hear us.
Samarth Singh
You were just answering the question I believe the question was that the volatility in the other geographies in terms of profits have been around, I mean, that’s not a recent phenomena, that’s been going on for some time now and so I was hoping to get some more clarity on that.
Ashish Khanna
So yeah, yeah. So as I was explaining, we’ve been having implementations in certain geographies and that is time the profitability may — revenue may go up, profitability may come down and there’s the other geographies at some other point of time where AMC revenue would be there and that’s where the profitability is higher. So this has been the case. However, going-forward, we will — we are confident that we’ll be having steady profitability in all the geographies, which would keep growing.
Samarth Singh
Okay. That’s it from my side. Thank you.
Operator
Thank you. We have a follow-up question from Sanjay Kay, an Individual investor. Please go-ahead.
Sanjay Khe
Thank you for the opportunity. I have two questions. This recently company has participated in this exhibition where they demonstrated vehicle finance product at in US, I think on that. So is this a new product and how was the response to this product demonstration in that first question. And second question is about generally, Q4 is generally — Q4 generally better compared to Q3 for the product companies. So are we seeing the same thing happening here or just better or you can just give that idea?
Ashish Khanna
Okay. Hi, Ashish. So let me attempt answering the first one. So after I went, definitely — I mean, so one of the major product for line-of-business for us is the captive order finance market. So we are — we are already working with some of the big players in captive motor finance market in multiple countries and we have — we are trying to enter into North-America as a region. And General Motor Finance, for instance, is our customer from us 25 years now. They are using our captive auto-finance product, which is an offshoot of Finland new Finland product. And they have been using this product from last 25 years in multiple countries. We have implemented it across a part of Europe, part of Latin-America. And we are in talks with multiple players in North-America right now in the captive order finance area to enable them with our product. So that’s the reason why we are also focusing on North-America in terms of participating in industry events and sharing our perspective, sharing our thought leadership in lending space and especially in captive water finance space. So that’s the reason. So there are a lot of tractions and it’s just a very good industry. So we are hopeful of new business. Sorry, can you repeat the shipping question?.
Sanjay Khe
Your second question is generally all these product companies have — Q4 is generally better than Q3. So just wanted to check whether it’s at least the same thing will be happening for this or it’s going to be different.
Ashish Khanna
Sure. Thank you. Thank you for the question. I think again as you Mr Vishnu mentioned, we are very optimistic, but at the same time, we don’t give guidance. That’s not part of the policy and we want to stick to that policy. So — but yeah, we are very positive. We are very optimistic as an organization. Thank and all the best. Thank you.
Operator
Thank you. Next question comes from Artik Gora, an Individual Investor. Please go-ahead.
Artik Gora
Hi, good afternoon. Am I audible?
Vishnu R Dusad
Yeah, you are.
Artik Gora
Okay. First of all, I think it’s commendable that you continue to focus on our spending for growth rather than prioritizing profit or prioritizing profitability for the moment and that’s good for long-term value-creation. If I look at the segmental numbers, the geographical breakup that you provide, my assessment is that the incremental costs are being spent for geography. Is that correct to surmise from the segmental numbers?
Parag Bhise
Can you repeat the last part of your question? So if you look at the segment geographical breakup, if you subtract the revenue minus the segmental profit, it looks like India geography has seen a majority of the incremental cost increase that we have seen in the last 3/4. So is it correct to assume that large part of the growth-oriented cost is incurred for India
Ashish Khanna
See, I would like to kind of clarify on this is wherein the cost increment is happening in India, but the efforts are going for overall growth — the overall growth. So obviously the activities are happening for growth in India and therefore, we are seeing the expenses in India. But so-far as the growth and the first are concerned, it is for throughout the world, not only India.
Artik Gora
Okay, understood. And sir, you might have given this clarification. Is there a broad split you are providing? How much of this cost is being spent on-sales and marketing and how much of it is on further product development and improvement?
Ashish Khanna
And so the breakup of that would be available as part of our results. And at the beginning of the call also mentioned about the individual component of the cost.
Artik Gora
Okay. All right. All the best. Thank you.
Ashish Khanna
Thank you.
Operator
Thank you. We have a follow-up question from from Honesty and Integrity Investment. Please go-ahead.
Vaibhav Badjatya
My question has been answered. So that’s it from my side. Thank you.
Parag Bhise
Thank you.
Operator
Thank you. Thank you. If you wish to ask a question, please press and R&1 on your telephone and wait for your name to be announced. I repeat if you wish to ask a question, please press R&1 on your telephone and wait for your name to be announced have a follow-up question from from Atway Investments Private Limited. Please go-ahead.
Vinay Nadkarni
Yeah. I just wanted to breakup of revenue between license implementation and AMC, if you can provide us
Parag Bhise
The line is a little bit disturbed, so you will have to repeat the question.
Vinay Nadkarni
Yeah, sorry. Can you hear me now?
Parag Bhise
It is.
Vinay Nadkarni
Yeah. Can you give us a breakup of how much of licenses, how much from implementation?
Operator
I’m sorry to interrupt, sir, your voice is not clear, sir.
Ashish Khanna
So if we understand your question well, I think you are asking for a breakup between license and implementation in terms of revenue. Am I right?
Operator
So there is no response from.
Ashish Khanna
Sure.
Operator
The next question comes from Lakshay Agarwal from Growth Ventures. Please go-ahead.
Lakshay Agarwal
Hello, sir. Thanks for taking my question. So you had earlier mentioned that you’re exploring the new product offerings, particularly in AI and investing efforts over there. So I just wanted to understand that what exactly would you be developing using this? And how would it impact.
Abhishek Pallav
So hi I’m Abhishek the idea is to generate data-driven insights and hyper personalized in this era and there are use cases in each part of the from if you look at be it the way transactions are happening, security or the follow-ups that agents are doing. So I’ll not be talking about use cases, but there are of use cases that we are working upon the plethor of business problems. So the idea is to enhance the customer efficiency and agents efficiencies and enable customers and decision-makers to take right decisions and instantly as well as with lots of information that that can help them to to look at the way these decisions are being made are in the right direction, number-one. Number two is right prospect and certain times there are cases wherein when to follow-up what is the right time to follow-up there are so a hyper — from hyper personalization to data-driven insights and a segment-based cross-sell, upsell, there are so many use cases that we are working upon. And we are also using capabilities from large norm models, models to convolutional models deep deep model network, deep neural networks, etcetera. So any specific area that you want to look you are looking for or.
Lakshay Agarwal
So. actually, I just wanted to understand that is any of these segments implemented right now in our product or we are working towards it?
Vishnu R Dusad
No, no, our product offering has this. — so we have AI-enabled in our product from almost more than three, four years now. So as Abhishek mentioned, so our transaction management product is already enabled in an AI fraud detection module, which helps to detect the fraud in the transactions. Similarly, we have multiple use cases, as Abshek mentioned in the entire lifecycle for lending product — lending enterprise product, including the organization, servicing and collection model. So there are couple of them — a couple of use cases which are already kind of explored live in the system and some we are?
Lakshay Agarwal
Okay, understood. And like while implementing all of these solutions, is it possible that we are able to charge a premium from our customers due to this?,
Ashish Khanna
Absolutely. I think — see, it’s not about charging a premium, but I think so we believe in a lot of value-creation when it comes to customers as a partner, right? So I think lot of use cases are adding, you know, on the customer side in the operational efficiency for their business or enable the next set of customers or unload the next set of customers for them or create a new set of financial products for their end-customers. So I think we are seeing a lot of value in that value-creation comes definitely as part of our pricing strategy. So we — I mean, we don’t Call-IT out as a separate premium pricing product at this stage, but maybe we are not sure how this will unfold or in the future. So as of now, it bundles up within the product offering.
Lakshay Agarwal
And so thank you.
Abhishek Pallav
The idea is to increase the efficiency and help customers see insights from the data they already have. Yeah and take the decisions for the business.
Lakshay Agarwal
Got it, sir. Thank you. Thank you.
Operator
Thank. Now I pass it over to Mr Vishno for his closing comments.
Vishnu R Dusad
Thank you very much for your continued interest in Nucleus software and I would like to reiterate our commitment to long-term value addition to all our stakeholders. Thank you very much once again for uniquely. Thank you.
Operator
That concludes our conference for today. Thank you for participating. You may all disconnect now. Thank you.