Nucleus Software Exports Limited (NSE: NUCLEUS) Q4 2025 Earnings Call dated May. 19, 2025
Corporate Participants:
Unidentified Speaker
Vishnu R. Dusad — Vishnu R. Dusad
Parag Bhise — CEO and Executive Director
Anurag Mantri — Chief Operating Officer and Executive Director
Tapan Jayaswal — Financial Controller
Swati Patwardhan — Chief Human Resources Officer
Surya Prakash Kanodia — Chief Financial Officer
Ashwani Arora — SVP – Global Customer Success Team
Mukesh Bangia — Vice President – Neo PMG
Ashish Khanna — Marketing Head
Analysts:
Unidentified Participant
Rahul Jain — Analyst
Mihir Manohar — Analyst
Pratap Maliwal — Analyst
Presentation:
operator
Good afternoon everyone. This is SCATH again a very warm welcome to all of you for this Nucleus Software earnings conference call for the quarter and year ended on March 31, 2025. For discussions we have here from the management team. Mr. Vishnu R. Dusar, our Managing Director Mr. Parag BSE CEO and Executive Director Mr. Anurag Mantri, COO and Executive Director Mr. Surya Prakash Kanodia, Chief Financial Officer. Mr. Ashwani Arora, Senior Vice President Mr. Ashish Khanna, Chief of Staff and Chief Marketing Officer Mr. Mukesh Bangia, Vice President Mr. Abhishek Pallav, Vice President Mr. Pradeep Malik, Vice President Ms.
Swati Patwardhan, Chief Human Resource Officer and Mr. Tapan Jaiswal, Financial Controller. As you all are aware, Nuclear Software does not provide any specific revenue earnings guidance. Anything which is said during this call which may reflect company’s outlook for the future or which may be construed as a forward looking statement must be reviewed in conjunction with the risk that the company faces. An audio and transcript of this call would be shortly available on the investor section of the company’s website www.with this we are now ready to begin with the opening comments on the performance of the company and post that we would be available for the question and answer session with this I now pass it over to Mr. Vishnu. Thank you. And over to you sir.
Vishnu R. Dusad — Vishnu R. Dusad
Thank you. A warm welcome to the investors call for the quarter and year ending 31st March 2025. We are thankful to you for your interest in nuclear software. It has been a year of building strength and delivering sustained value to our customers. We have been making steady progress in. Aligning our resources for customer success and. Are confident of increasing the value that we deliver. With those words I’m handing over to Tarak.
Parag Bhise — CEO and Executive Director
Thank you sir. And welcome everyone to this quarter’s call. A warm welcome to you. This quarter as Mr. Vishnu mentioned has been good for us. We managed to add three new logos in this quarter and also got some incremental support from our customers, existing customers. And we were able to complete some achieve some significant milestones. And that’s what is reflecting in our numbers. We continue our focus on our investments in technology as well as our people. That is going to be a continued focus for the entire year.
Our lean journey, what we have been talking about remains our focus and we plan to take it the next levels to derive maximum benefit. I’ll close with these remarks. Thank you very much. And over to Tapan for giving the financial update.
Tapan Jayaswal — Financial Controller
Sir. And good afternoon everyone. Highlights from financials are consolidated. Revenue for the quarter is at rupees 228.9 crore crore rupees 205.7 crore quarter on quarter 10.3 crore year on year for the year it is 832.3 crore against rupees 826.5 crore the previous year. Overall revenue in foreign currency including India rupees revenue for the quarter is US$26.5 million 24.4 million quarter on quarter and US$25.3 million year on year.
For the year it is US$98.5 million 100.6 million for the previous year. Product revenue for the quarter is at rupees 199.6 crore against rupees 174.8 crore quarter on quarter 179.4 crore on year for the year it is Rs. 713.8 crore against Rs. 711.4 crore for the previous year. Revenue from projects and services for the quarter is at Rs. 29.4 crore against rupees 30.9 crore quarter on quarter 3.9 crore year on year. For the year it is Rs. 118.5 crore against rupees 115.1 crore. The previous for expenses, cost of delivery including cost of product development for the quarter is 57.3% of revenue, 70.7% of revenue quarter on quarter and 63.5% of revenue year on year terms this is rupees 131.3 crore against rupees 145.5 crore quarter on quarter 3.5 crore year on year.
For the year rupees 568.7 crore 511 crores for the previous year for marketing and sales expenses for the quarter is 4.9% of revenue, 3.6% of revenue quarter on quarter and 3.3% year on year terms this is rupees 11.2 crore against rupees 11.6 crore quarter on quarter and rupees 6.9 crore year on year for the year at rupees 36.1 crore 6.6 crores previous year expenses for the quarter is 5.3% of revenue, 1.6% of revenue quarter on Quarter and 5.7% year on year terms this is Rupees 12.1 crore against Rupees 15.6 crore quarter on quarter and Rupees 11.9 crore year on year for the year crore for the previous year.
Beta for the quarter is at Rs. 74.3 crore against Rs. 33 crore quarter on quarter crore year on year. For the year beta is at Rs. 167.6 crore against Rs. 219.5 crore in the previous year. Other income from investment and Deposit is at Rs. 16.7 crore against Rs. 14.8 crore quarter on quarter and rupees 14 crore year on year. Total other income for the quarter is rupees 16.6 crore against rupees rupees 15.6 crore quarter on quarter 14.2 crore year on year. For the year the income from investments and Deposit is at rupees 64.8 crore against rupees 48.1 crore for the previous year.
Total other income for the year is Rupees 66.3 crore against Rupees 50.9 crore for the previous year. Total taxes are at Rupees 22.8 crore against Rupees 10 crore quarter on quarter and Rupees 16.3 crore year on year. For the year taxes are Rupees 56.1 crore against Rs. 64.2 crore in the previous year. Net profit is at Rs. 64.8 crore for the quarter against Rupees 35 crore for the quarter and Rupees 52.1 crore year on year. For the Year one hundred and sixty three crores six crores the previous year, the comprehensive income is at negative 0.2 crore for the quarter against negative 1 point crore quarter on quarter on year for the year at negative against positive 1.9 crore in the previous year.
Comprehensive income which includes net profit rather comprehensive income is at rupees 4.6 crore for the quarter against rupees 33.3 crore quarter on quarter rupees 46.1 crore year on year. The year it is at Rs. 159.4 crore 93.6 crore in the previous year for the quarter is at Rs. 24. 6 as against rupees 13.3 quarter and quarter and rupees 19.5 year on year for the year it is at rupees 61.4 against Rs. 71.6 in the previous year. In terms of foreign Currency hedges on 31st March 2025 at USD 3.25 million of forward contracts at an average rate of 86.24 There is a mark to market gain of rupees 0.06 crore which is taken to the hedging reserve in the balance sheet.
Revenue contribution from the top five clients for the quarter is 7.8% against 28.1% in the previous quarter. Total cash and cash equivalent as on 31st March 2020-25 is 877.3 crore against rupees 877.9 crore as on 31st December 20. This includes balance in current accounts of Rs.50.5 crore. Various schemes of mutual fund rupees 597.4 crore. Fixed deposits of rupees 196.1 crore. Investments in tax free bonds of rupees 33.3 crores. With regards to receivables we are at rupees 137.4 crore against rupees 109 in the quarter. There is a gross addition of fixed assets of rupees 8.50 crore consisting of and then machinery the fixtures where 9.0 acre on equal to Poonam.
operator
The Tapun voice is not audible.
Tapan Jayaswal — Financial Controller
Hello. So my update is complete. Hear me?
Questions and Answers:
operator
Yes sir. Thank you sir. With this we are now open for the question and answer session. If you wish to ask a question please press star and one on your telephone keypad and wait for your name to be announced. If you wish to cancel your request please press star and 1. Again we have the first question from Rushab Shah from Google Rock pms.
Unidentified Participant
Yeah, Hello. Hi. Thanks for the opportunity. Sir. One of the questions why I have that in one of the key things in your company are the employees. What has been the attrition rate over the years and what kind of incentives do you provide so that they stick with us for a long period of time?
Swati Patwardhan
So our attrition for last couple of years is our average is less than the industry average, substantially less than the industry average. Our voluntary plus involuntary attrition would be at around 11% and lesser. That’s an attrition. And the second question was in terms of measures that we are taking to retain, I think we, we have two focus areas.
One is continuous engagement with our people. So our engagement pillars when it comes to career growth and development are very very robust and there is a lot of focus on continuous improvement and development. And the second part is on the experience. So you know the voice of customer, internal voice of customer is something that we keep channeling our energies and insights into so arresting any early discontent and tackling it before it reaches the resignation Stage, that’s something that we do proactively for retention.
And then from an incentive perspective, our. Compensation structure has a component of variable bonus which is linked to not just the individual performance, but also linked to organization performance, which is paid out at the end of the year. So we encourage everybody to stay back so that, you know, they can have their fair share of earnings as well.
Unidentified Participant
Yeah. My second question is in general terms, when a customer is in our pipeline, how long does it take to convert that customer into sales? And what would be the possible reasons for the from the customer’s end to delay the process?
Ashish Khanna
Hi, thanks for the question. This is Ashish Khanna. So the typical sales cycle in the enterprise software, you know, software is a little longer now. So it’s typically vary from eight months to one and a half months, one and a half year, you know, 18 months. And it really depends upon the complexity of complexity and nature of the line of business they want to enable. Right.
So what typical we are seeing now is that the real reason for delay is that it has become, you know, technology has become so important that it become a point of discussion at a board level. Right. So it’s not just limited to the CTO or cio. Now the technology conversation and discussion is going up to the board level. So there are a lot of iterations, lot of conversation at that level. Also this is positive also that’s how we look at it because it become a very strategic subject, you know, how to enable and have that technology empowerment at all level.
So at the organization, the financial institution grow, you know, grow steadily and serve the masses. So to answer your question, typically the cycles are longer now. And the real reason is primarily because the conversation goes up to, you know, up to the board level. Now.
Unidentified Participant
My last question is in one of the calls you mentioned that you have very strong basis for selecting the customer.
Ashish Khanna
That’s right.
Unidentified Participant
Let us know what are those basis and why those bases are so important for you.
Ashish Khanna
So I mean, typically, you know, for any customer, for any organization to select a customer, Right. And vice versa, there are certain guidelines, parameters, you know, governance framework, which are built up at an organization level. So, you know, I’ll give you a very vague example, right. Anybody doing a business in financial space, and if we are not very clear about the business model, you know, we don’t want to give our software for that particular institution or for that particular business. Right. So clarity has to be there. So I think there is a, there is a robust framework for us to evaluate a specific prospect.
Right. Including the governance, including the including the way they are, the kind of a business they are doing, what’s regulatory view on that business. So keeping all these lenses enabled, we take a decision whether to continue with that particular prospect or not. So it’s a robust framework at an org level which we use to evaluate a particular prospect while considering that while investing our time and energy to onboard the customer.
Unidentified Participant
Thank you again.
Ashish Khanna
Thank you.
operator
Thank you. The next question comes from Mr. Rahul Jain from Dalab Capital. Please go ahead with your question.
Rahul Jain
Hi, thanks for the opportunity. I hope my line is okay.
Unidentified Speaker
Yes it is.
Rahul Jain
Yeah. So firstly begin with some book cheating question. Actually I missed and as usual the voice was pretty low when those numbers were shared by Tapan. So it would be very difficult get the audible data. I could not hear that at all. And the top five contribution which also was mentioned.
Unidentified Speaker
Could you repeat the numbers please and be loud on.
Tapan Jayaswal
So sir, which number I have to repeat?
Unidentified Speaker
Order booking number. And top five revenue percentage. Top five customers revenue percentage.
Unidentified Speaker
I will take it. Sure. Yes. So yeah, Rahul, thanks for your question. So the order book is like pending as on today at the end of the quarter I would say is 600 plus crores. So that is the order book on which we are sitting. In terms of the revenue from the top five customer it is around 27.5%.
Rahul Jain
Did you mean to say 6000. Sorry, 600 crores but only for the product or this is the overall,
Ashish Khanna
this. Is over overall this includes product and services.
Rahul Jain
And this number if I’m right was 700 crores in the previous quarter.
Ashish Khanna
Yeah, I mean the way it happens is like we have an order book and then as the quarter goes so you would have seen that we have exhausted almost like 228 crores in this quarter. So yeah, I, I mean that is how it has happened.
Rahul Jain
Right. And what would be the services part of this? 6,000 or 600.
Ashish Khanna
So I would not be having the exact number. But roughly around 14 to 15% of our revenue comes from services. So this is indicative. But yeah, you can take a clue from there.
Rahul Jain
Right, right. And okay. Now you know there are a few observations in the current result. I think one important one was the mention of the three key imperatives for FY2 around platform expansion, AI product innovation and global customer insight. So if you could double click on that FARAG or Vishnu GP server to do that. Thank you.
Ashish Khanna
Yeah, if you could repeat the question.
Rahul Jain
Yeah. So I’m just referring to our. Where we have said that going for the FY26 we would be you know unlocking our potential for three key imperatives which were platform expansion, power product innovation, global customer impact. So if you could throw more light on this aspect.
Unidentified Speaker
Okay, okay. So in fact we have our engineering head also but I first give some prelim inputs and if required you can. Talk more about it. Essentially you all know it’s time time of AI enabled now. So we I think took our time to decide our AI strategy. But we are now clear on our in our both our products, whether it is retail lending, transaction banking. We now have a list of use cases, a long list of use cases which we want to build. In fact we have started building them with every release. Some use cases are getting rolled out and that’s, that’s what was meant by that portion of the release that that’s going to to be the focus this year in in addition to building our functionality and focus on robustness, AI enablement is going to be the focus in a nutshell.
Rahul Jain
Sure, sure. And just to understand your geographical dimensions of growth, what we saw that India saw a good growth on a QQ basis and you mentioned that there were three new logo wins. So with some of these came in India geography and in the milestone. And what part of the revenue was led by milestone hit or is it largely led by new logo win that has shown the growth in India?
Ashish Khanna
So yeah, so A the new logo that we got is combination we got in India, we got outside India as well. So it’s a combination B of the total revenue. The revenue which is related to milestone or let’s say product and implementation would be in the range of 12 to 14% in this quarter. The rest is related to our services and the usual AMCs and ASEs that you do.
Rahul Jain
Understood. And another geography that has been seeing some consistent improvement is Australian. We used to talk about the last potential here a couple of years back. So any color you could share in terms of how this job is shaping up, is it coming from AMC repricing on the existing customer or is there are more expansion or.
Ashish Khanna
Thanksish. So definitely you know we talked about Australia, we talked about North America. So all these geographies are very strategic and important for us. So Australia primarily we’re getting strengthened from multiple lenses. We are working closely with some of the strong players there from one from more than decade and one from almost five years now and some others who we are in touch with to innovate in that geography. So lot of traction is coming from that geography and similarly for North America. The last one and a half year we were building we Are doing lot of.
You must have seen our LinkedIn and all. We were doing a lot of industry events. We are connecting with a lot of stakeholders there. So we are again getting good traction because we see that a kind of an IP we have built, it has a strong potential to disrupt, you know, and to bring, you know, right value to the end customer in that geography. So both are both geographies. Fees are looking potentially important and strategic for us.
Rahul Jain
Right. So Ashish, if I got you right, you’re saying the current growth in the Australian account could have come from our decade old relationships. But yes, there is a large potential pipeline and if you could clarify that part. And secondly on the North America we are participating more. Is there a strategy? Because it’s a very, very large market in terms of number of unique customers, a lot of community banks, mid size banks. So is there an area that we have identified as our sweet spot in terms of the cash size or book size or any other cut that we are filtering right now?
Ashish Khanna
Yep. So Rahul, the first point on Australia, you are right, your understanding is right that we have obviously two very happy customers and then we have a strong pipeline in Australia, the region on the North America side we do have a strong strategy, a very focused strategy on a very specific line of business with a, you know, with a clear focus on and a specific focus on the lending platform. So yeah, I mean that’s what I can share at least at this stage. So we have a very small specific focus approach for a line of business in North America as a region.
Rahul Jain
I was more focusing trying to understand what within North America because a geographically large market, there are a lot of 2,000 banks which could be a potential customer to. For our product. So is it cut by geography or size of the bank or. It’s all over the place right now.
Ashish Khanna
So you know Rahul, as I mentioned, you know we are, we have a very strong strategy about a very specific line of business and specific industry in that geography. Right. I won’t be able to share that specific right now but we’ll make a beginning, you know, wherever there is a strong possibility and opportunity. And we are seeing that traction already, you know, while we are engaging with some of the prospective customers. But you are right, it’s such a very, very vast and wide market. Right. It’s a very complex also from every aspect including regulatory. So we are very clear where we want to go as an organization.
You know, with all our strength which matches with that opportunity which we, which we foresee right now. So we do have A very strong strategy in place. But yeah, time will tell because the government, the geopolitical dynamics are such that will be difficult for us to comment anything beyond this.
Rahul Jain
Appreciate that color and just one more element which you could add on it because as you said you’ve been around for fairly long period of time. We have seen all these Indian vendors also trying big time hard, including names like now a U.S. company. But we have seen very limited success by most of your competition, big and small ally. So is this right now at a marketing stage for us? And it’s like we’re building for a long term potential here. How do you think it could be monetized on a, you know, one to three year basis as well? Any color on that would be great.
Ashish Khanna
So Rahul, maybe, you know, I’ll address it on behalf of the entire organization. So the experience really, you know, the world we are into is very dynamic. Right. As Parag also talked about the way AI is changing things now, the way things are unfolding not just on a technology front but also on the geopolitical front. So a lot of things are changing very dynamically and very fast nowadays. Right.
So past experience definitely help. Right. But I think how do we see and prioritize our things as we go along and you know, very fast in that process. So I think that is going to set the game for us. So that’s all we can say at this stage. You know, we are definitely leveraging our past experience but at the same time we are, you know, bringing lot of change internally to be more agile, more focused, you know, and more stronger as an organization with all our strength in place. So that’s what we can, we can share at this stage.
Unidentified Speaker
Yeah. Just to add to it, as an organization, our entire focus remains on the customer centricity and value that we can create for the prospect. And during this journey, of course as you rightly mentioned, the world of, this. Is the world of Vuca and we. Have to be extremely cautious. At the same time we know our strength and we also know during our journey to the prospect that how we can create value, we go step by step with the right fundamentals in place and hopefully expect this to get into the results. Yeah.
Rahul Jain
Thanks for so many, so much color on that. And just last week from my side before I allow this is on the employee cost. This has seen some downtick. Is it some kind of a provision reversal that would have happened or any other aspect that we could talk about? And closing headcount on a basis versus.
Ashish Khanna
Now if I understood it right you’re talking about the employee count as well as the employee cost reduction that is seeing. Right. So. So in terms of employees we have added employees in the last quarter. We are seeing opportunities, we are seeing space for investment in our technology and that is the reason we are adding employees. In terms of the reduced cost that you see, this is on account of the true up or true down of our various costs and provisions that we do towards the end of the year. Primarily being on the employee side.
Because for employee what we have done at the beginning of the year, we have linked a part of the employees compensation available pay as Swati is also mentioning to the organization performance towards the end of the end of the year. On the basis of the actual performance that we have seen, there is a true down that has happened in our employee cost. That is the reduction that you are seeing as part of the employee cost.
Rahul Jain
Right. And I think this is a comment which you know, some other people also suggested in past. Given that the kind of a start moment that you observe in this cost trend, it would be better if we could, you know, give a clarity on this as in the, you know, in the ensuing quarter so that we would know that this. Otherwise if you look at the Q4 performance, it looks startingly different than the previous quarters in terms of cost as well as growth. So what I can understand, you can’t time it but cost because we know there is a good probability that it would get unutilized on the provision side. Some clarity on that aspect could be a great help. Thank you.
Ashish Khanna
Good recommendation. We have taken a note of it. We will look at it how we can handle this.
Rahul Jain
Generally we have not observed this kind of a big deal. Maybe it depends upon the size of that provision versus the total cost. But this kind of accommodation we don’t see in any other. Thank you.
Ashish Khanna
Okay. Okay, we can move to the next participants.
operator
Thank you sir. Next question comes from. Next question comes from Mr. M from Carnelian Asset Management.
Mihir Manohar
Yeah, hi. Thanks for taking the opportunity and congratulations on good set of numbers. Sir, I wanted to understand the operating profit one of 33 crores to 74 crores in the last quarter. So I mean this increase which has happened, I mean how much portion is coming from the reversal and how much portion is coming from license, you know, large license, if you can quantify that.
Ashish Khanna
Sorry, I think you have to repeat the question initial part of the question because I think we do some connection in between.
Mihir Manohar
Audible.
Unidentified Speaker
Yeah, you are audible now. Go ahead.
Mihir Manohar
Yeah, sure. So basically the operating profit has gone up from 33 crores to 74 crores, quarter on quarter basis. How much of it is coming from the provision reversal which you just talked about. And second thing, I mean how much is coming from the license part of the piece? Generally what happens is that a license directly flows into bottom line. So I wanted to understand these two things.
Unidentified Speaker
Yeah. So on account of provision reversal the benefit is of eight and half crores. See, most of the growth in the operating profit that you see is because of the growth in revenue that has happened. So we being a product company, we don’t see a proportionate rise in cost when we get our revenue up. So that is the reason you would have seen that most of the revenue increase that you are, we have experienced in this quarter is sitting as part of the profitability in terms of, as I said in terms of cost. 8 and half crores is on account of what I said. The remaining is the efficiency that we we’ve been able to bring into the organization.
Mihir Manohar
Understood? Sure. So 229 crores of revenue which is there. How much was license in this? 229 crores. And last quarter? 206 crores. How much was license over there?
Unidentified Speaker
The license revenue including implementation we counted together contributes around 10 to 12% of our total revenue. So you can count around 10 to 12% is contributed by license. The remaining is on account of the other factors.
Mihir Manohar
Sure. Understood. Sir, if you can just break up these 830crores, I mean you know how much would be license implementation, how much would be amc. That would really help you.
Unidentified Speaker
Sir, that kind of detail I fear we don’t share. I mean I have given you a rough breakup. But beyond that it will be not possible for me to provide that breakup to you.
Mihir Manohar
Okay. Sure sir. Understood. The second thing I wanted to understand in Europe and Middle East. Europe and Middle East, I know what our top customers in that particular geography. I mean is it tier 1, how to understand that.
Unidentified Speaker
We have, if I. Talk about Middle east commanding, we have top seven out of top 10 customers, 10 banks with us. So tier one banks, both tier one, tier two, they work with us, they leverage our enterprise software solutions to run their assets out of the business.
Mihir Manohar
Sure, understood. In Europe.
Unidentified Speaker
We have a limited presence as of now. So we have a specific, you know, set of customers who are using it. They are again tier one but not we don’t have too many customers here as of now.
Mihir Manohar
Understood. Sure. So my last question was on the AI investment. Sir, if you can quantify what is the what amount, how much amount are you spending On a per year basis. And what kind of products or what kind of solutions are we developing over here? Some use cases. If you can provide clarity that would be really helpful sir.
Unidentified Speaker
So yeah, maybe,
Ashish Khanna
yeah. Good afternoon and. Hello to everyone. As far as AI initiative is part of our product RD and as mentioned in the start of the call we are it comes as a strategic part of the initiative and being taken care like that. So it is not like specific, specific quota or sort of budget is there but large part of R D that is, that is there good part. We are investing into AI and our strategy is to bring as many as UI use cases into implementations in next couple of months and next couple of months and quarters the year after. As mentioned by Parag sir that we. Have already created a backlog. We have started burning it. Some of capabilities are already rolled out, some are in the pipeline and going to come in the next quarter. So it is like that. So in nutshell there is a sharp, very, very sharp focus on that and so is the investment.
Parag Bhise
So additionally just to kind of add one more point, so it’s cutting across all the product lines. So it’s like embedded in the day to day work of all the engineers. It’s not something we are building out of box and then bridging it across. So AI is now everything is getting reskilled to AI and we are enabling AI across all the product lines horizontally.
Mihir Manohar
Sure. Understood. I mean what will be the total R and D spends for us? 60 crores.
Unidentified Speaker
Total R and D spend. So I mean, I mean we don’t define as such. You know Surya, maybe you want to take this.
Unidentified Speaker
I’m sorry, I think there was some responsibility.
Surya Prakash Kanodia
No, so see R D cost of the total cost that we incur, RND cost would be approximately 15 to 18% of the total project we incur in a quarter.
Mihir Manohar
That’s it for my city. Thank you.
Parag Bhise
Thank you.
Surya Prakash Kanodia
Thank you.
operator
Thank you. Next question comes from Mahat Singh, an individual investor. Please go ahead and get questions.
Unidentified Participant
Thank you for the opportunity. My question is are we using transaction. Based pricing for our products or is it user based?
Unidentified Speaker
So we are using both, I mean we are using transaction based pricing as well as user based pricing. So pricing is.
Unidentified Participant
Hello.
Unidentified Speaker
Can you hear us?
Unidentified Participant
No.
Unidentified Speaker
Hello?
Unidentified Participant
Yeah.
Unidentified Speaker
Am I audible now?
Unidentified Participant
Yes, yes.
Unidentified Speaker
So yeah, I’m saying just to answer your question, our pricing model, you know consists of both transaction based as well as user based pricing.
Unidentified Participant
Okay.
Unidentified Speaker
And there are other, you know, variants of this model. So yeah, it is mix of some 2, 3 models which are prevalent in industry.
Unidentified Participant
Okay. And with AI adoption, you don’t think. That we will go fully based on transaction based model.
Unidentified Speaker
So again, as I mentioned, our AI capability is going to cut across all the product lines. So it’s going to add another layer of value to our customers and customers and customers. I mean, we don’t see that we are going to work on a very specific kind of a commercial model for AI. It is going to cut across and then it could be again a variant of mix. It could be transaction, it could be some license based pricing, it could be mix of things.
Unidentified Speaker
And since AI part of the AI use cases is expected to enhance product capability for a given domain, in that case, AI assisted capability is of course at the pricing tier, pricing quotient of it. So in a way what you expect, the answer is yes.
Unidentified Participant
Okay, thank you. And I have another question. Price revision is being negotiated with how many clients? I need a number.
Unidentified Speaker
Generally as a practice we don’t give such very specific numbers. But you know, as we mentioned in our last quarterly investor call, we have done pricing re baselining for most of our customers. So I think that exchange is already done by now. So yeah. Anything further, if you want, I can support you with.
Unidentified Participant
Okay, thank you.
Unidentified Speaker
Thank you.
operator
Thank you. The next question comes from Pratap Maliwal from Mount Infra Finance.
Pratap Maliwal
Hi. Am I audible?
Unidentified Speaker
Yes, you are.
Pratap Maliwal
Yeah. Hi. Thanks for taking my question. I just wanted a clarification. You said that Q4 we got some milestone based revenues and think you pointed out the quantum of the milestone based revenues as well. 12 to 14% of our revenues this quarter, is that correct?
Unidentified Speaker
40%. Yeah.
Pratap Maliwal
Okay, so X of the milestone revenue. So our revenue would have been somewhere around in the 200 crores.
Unidentified Speaker
Yeah, approximately that number. Correct.
Pratap Maliwal
Okay. And milestone based revenue, this is a one time thing or this is kind of something that happens every Q4 every year. Is that, is it, is it of that nature?
Unidentified Speaker
This is a contrast flow. This is contrast flow. We get long term projects. High stone basis is basically on the percentage of the project which has been completed within a year or in a quarter. And therefore what is the revenue related to that? So it is not one time in nature. It is something which is a continuous move.
Pratap Maliwal
Okay. So it can happen on a quarterly basis going forward as well. Any quarter.
Unidentified Speaker
Yeah.
Pratap Maliwal
Okay. And just on your employee cost, as you said that we had some provision pull downs regarding the variable pay. So can you just help me understand what would be our normalized kind of employee cost level going forward?
Unidentified Speaker
So I mean see the reversal that you as you see in our numbers is to the tune of around 8 and a half crores. So expect whatever number that you see is the BAU number for us.
Pratap Maliwal
Okay. So then it comes to about 130 crore. That’s still I think a 7 crore reduction from the previous quarter. But. And you said that we are adding employees. So just wanted a clarification on that part.
Unidentified Speaker
Yeah, actually there were some other provisions also which they. Which were like additional provisions. So I would say the provisions were made in excess of what this would have been actually incurred. And that is one prove that we did towards the end of the quarter as well. So the reduction that you see, the one related to the variable pay is something which obviously is one time but the remaining is something which is kind of bringing the cost in line with reality.
Pratap Maliwal
Okay, understood. Thanks for taking my question.
operator
Thank you. The next question comes from Mr. Rahul Singh from Eight First Business Solutions LLC. Please co edit request.
Unidentified Participant
Hello. Hello. I have a question about this cash and cash will increase balance it so we can see the buyback or aspect of the near future. Yeah, what are plan with the cat and cash equivalents on the balance fix so we can see any buybacks or special dividends in near future.
Unidentified Speaker
Is something which we are not thinking now. I mean we are not thinking for both buyback as and especially unit at least in this quarter. I mean we had our whole meeting so we haven’t discussed any of these two at least in this meeting. I mean in future what we will do is something you should decide later.
Unidentified Participant
So I have one question. Did we lose any customer? This.
Unidentified Speaker
Yeah. I mean you know as we talked about the. The. The dynamic nature of things which are changing in. And you know the way things are unwrapping. So at least so. So in the last quarter or maybe five, six months we have. We have lost two customers. Yeah, we have lost two customers. Customers.
Unidentified Participant
Thank you sir. That’s all from my side.
Unidentified Speaker
Thank you.
Unidentified Participant
Thank you.
operator
Thank you. Participants, if you wish to ask a question please press star and one on the telephone keypad and wait for your name to be announced. Repeat participants, if you wish to ask the question please press star and one on the telephone keypad and wait for your name to be announced. We have a question from Vinay Nakarani from Hathaway Investments Private Limited. Please go ahead with your question.
Unidentified Participant
Yeah, just wanted to. Because this quarter has been a really amazing quarter. Just wanted a clarification on the efficiencies that have come in. You have said that your employee cost of around 8,8 odd crores has been reduced. But the reduction is almost 50, not crores from last quarter to this quarter. So I assume that the balance is on account of efficiencies. Now what kind of efficiency could you attribute them to to reduce your employee cost?
Unidentified Speaker
Okay, so in my response Surya here, my response to the previous question actually mentioned that what has happened is like we were making provisions related to some kind of employee distribution that we do that. That is something which we have kind of proved up towards the end of the quarter for the end of the year. So it is not like, I mean obviously there are efficiencies that we are driving in the form that we are able to extract almost like 11% more revenue without kind of increasing our headcount much. So in that respect we are driving efficiency.
However, when you see rupee to rupee drop in the cost it is primarily on account of true up or true down of the revenue. The mean being one that is spoke about related to the employee cost. And then there are some others also where we were getting carrying some provision which we have kind of true to the actual cost that we see we have been incurring.
Unidentified Participant
So so would it be right to say that going forward say around 122 crores or would be a rough cut quarterly employee cost?
Unidentified Speaker
Okay. I mean obviously I don’t want to get into position of being predicting or talking about a number which is related to quarter one number. But having said that, please remember I we spoke that we are in the spree of investing in our people as well as our employees. So therefore, therefore on the factor of that they could change. So I mean I am giving way probably a vague answer but yeah, these are sectors I cannot give you the exit numbers. That is the issue.
Unidentified Participant
Thank you, I appreciate. The only other last question is when I look at your revenues they were consistently around 205 crores and suddenly this quarter it has gone up to 229 crores. And that is primarily because of new business. I presume that you would have got anything that you can share with us on what made this jump come from 206 to 229 quarter to quarter.
Unidentified Speaker
Yes. So see it is a combination of many factors which has came into play and that makes us happy for about this quarter because a the revenue has been spread across different customers as well as across different line of businesses that we operate. Okay. So the addition in revenue obviously as you spoke has came from addition of new business from new customer. But even more importantly the trust that has been shown by our existing customer. And they have given additional business which we have kind of delivered and therefore converted to revenue in this quarter. And then the last one is the efficiency that we were able to bring, in the sense that in the last quarter, the entire organization joined their hands together that delivered their project to the customers in the most efficient manner, because of which we were able to deliver the right quality in the right time, which helped us to bring in more revenue as well. So it’s a combination of all these factors which played their role to bring the revenue up.
Unidentified Participant
One question. Can I ask?
Unidentified Speaker
Yeah, please.
Unidentified Participant
You said you lost around two customers in the last six months. How many new logos have we added in the last quarter? Last half year, maybe.
Unidentified Speaker
Yeah. So the last two quarters we have added foldovers.
Unidentified Participant
Okay. Thanks a lot. Wish you all the best.
Unidentified Speaker
Thank you.
Vishnu R. Dusad
Thank you. There are no further questions. I would pass it over to Mr. Vishnu for his closing comments. I take this opportunity to thank you all for your sustained interest in nuclear. Software and would like to reiterate. On. Behalf of all my colleagues, our commitment to continue delivering value to all our stakeholders. Thank you very much.
operator
Thank you, sir. That concludes our conference for today. Thank you for your participating. You may all disconnect now.