ROUTE MOBILE LTD (NSE: ROUTE) Q3 2025 Earnings Call dated Jan. 28, 2025
Corporate Participants:
Rajdipkumar Gupta — Managing Director
Gautam Badalia — Chief Executive Officer
Rajeshwar Singh Gill — Group Chief Financial Officer
Vinay Binyala — Chief Strategy Officer
Analysts:
Jyoti Singh — Analyst
Pritesh — Analyst
Yash Darak — Analyst
Nikhil Choudhary — Analyst
Yash Dehlani — Analyst
Kaustav Bubna — Analyst
Saumil Shah — Analyst
Meet Rachchh — Analyst
Kartik — Analyst
Presentation:
Operator
Good evening, ladies and gentlemen. I’m Reyo, moderator for this conference. Welcome to the conference call of Root Mobile Limited, arranged by Concept Investor Relations to discuss its Q3 and Nine-Month FY ’25 results. Thank you. We have with us today Mr Rajdeep Kumar Gupta, Managing Director; Mr Gautam, Chief Executive Officer; Mr Raj Gil, Group Chief Financial Officer; and Mr Vinay, Chief Strategy Officer.
At this moment, all participants are in the listen-only mode. Later, we will conduct a question-and-answer session. At that time, if you have a question, please press star and 1 on a telephone keypad. Before we begin, I would like to remind you that some of the statements made in today’s earnings call may be forward-looking in nature and may involve certain risks and uncertainties. I kindly refer to Slide number two of the presentation for the detailed disclaimer. Please note that this conference is being recorded.
I now hand the conference over to Mr Rajde Kumar Gupta. Thank you, and over to you, sir.
Rajdipkumar Gupta — Managing Director
Thank, Riyu. Good evening, everyone. I hope you are doing well. I would like to share an important update about our evolving organizational structure and what it means for. As you may have seen in the recent announcement, Group has created Global, which brings together the best and under a single umbrella. We believe this marks the beginning of an exciting phase of growth for all of us. For us at, this organization represents both an affirmation sense and significant opportunity to leverage the combined capabilities of our sistered organization on a much larger-scale. Within this new structure, our leadership has evolved to position us for maximum impact. I have now assumed the role of Managing Director and I will focus my expertise on accelerating our business across international markets and tapping into the remarkable product diversity across Globally. Batalia has now taken on the role of Chief Executive Officer of RNL and will guide our day-to-day operations and strategic vision, continuing to build-on the momentum we have already seen. And I will closely collaborate to ensure that our long-term strategic initiatives align seamlessly with our — with all our operational activities. It’s essential to note that this expanded group structure on this front, how our clients or partners interact with Mobile. In fact, the new sector promises to engage our offering by drawing on global connectivity footprint and satisfying stronghold in digital identity. All of this blends seamlessly with strength in customer engagement solutions. We believe that together under Global, we can move more swiftly on innovation and streamlined decision-making across-the-board. That synergy should directly benefit our enterprise customer, OT clients and mobile network operators and partners worldwide. We are also excited about the far-reaching potential of having access to an established footprint in more than 100 countries. This type of coverage creates an avenue for faster product rollout, stronger collaborative solutions and far deeper global support network ultimately. So that should translate into tangible advantages to investors, not just for — not just in terms of operational resilience, but also because it gives us the kind of scale needed to solidify our market leadership in the CPaaS phase. As always, our commitment remains to drive sustainable profitable growth. We will keep you updated on how the changes at Global impact of including any new product strategies or regional expenses that result from this collaboration. I’m confident that steps we are taking — taking now is a position for long-term success, and I look-forward to sharing more details as we continue on this path.
Now I hand over the call to Gautam.
Gautam Badalia — Chief Executive Officer
Thank you, Raji. Good evening, everyone. Wishing all a very Happy New Year. It gives me — so we have uploaded our quarterly earnings presentation. Hope you had the chance to go through the same. It gives me immense pleasure in stating that has yet again delivered industry-leading growth both on revenue and profitability despite the festive season being not so. In an environment where most of our regional and global competitors are demonstrating flattish to single-digit growth, performance definitely stands out. Since H2 FY 2024, the CPaaS industry has been going through a structural shift in terms of the overall market dynamics.
The industry has been grappling with issues like artificially inflated traffic, overall macro headwinds and trust deficit issues with large global enterprises, which has caused them to evaluate alternate channels for communication. We believe Mobile along with Proximus Global is best poised to capitalize on these adversities by virtue of the following three factors. As a trusted partner to the enterprises globally with 450 plus mobile network connects, Mobile continues to have the widest reach with the telcos globally. Mobile also has been the biggest proponent of curbing gray routes by deploying firewalls on the networks. Additionally, Mobile has also started deploying anti-spam filters with leading telcos globally. In terms of the second factor, so we kind of today are following — follow the firm approach. So our route Mobile along with Proximus Global has an unparalleled reach across the globe, which definitely helps us render the best quality of service and plus be the partner of choice for all large global enterprises.
In terms of the third factor, we leverage the diversified portfolio across the group to cross-sell, up-sell and become one of the most integrated and comprehensive service provider across the Connect, engage and protect layer of the communication value chain. So while we continue to leverage these strengths, we have also started our journey to move-up the value chain by drawing insights from the first-party data models using LLMs and machine-learning tools to render more effective and personalized communication. In terms of some of the developments for the quarter gone by, we have demonstrated an industry-leading revenue and gross profit growth of over 15% on a Y-o-Y basis. Gross margin continues to be stable. Operating margins were impacted marginally owing to impact of INR57.1 million of long-term incentive plan, which pertain to the period July to December 2024. We shall continue to have an impact of INR120 million during CY ’25. However, about INR10 crores of operating cost is non-recurring on a quarterly reported basis. Adjusted for that, EBITDA would — reported EBITDA would have been INR40.72 crores in Q3 FY ’25, which is 11.9% EBITDA margin.
Okay. And I mean, some of the related-party transactions that’s happening across the group actually is happening at a lower markup than the portfolio operating margins and hence adjusted for that, I mean, EBITDA margin for nine months FY ’25 would pan-out to be about 12.33%. Other income during the quarter gone by reduced significantly owing to ForEx loss in Q3 FY ’25 as against gain of INR250 million in Q2 FY ’25 and gain of INR147 million in Q3 FY ’24. This impacted the PAT margins and hence the PAT margins were slightly lower. So one area where we have done exceedingly well has been the free-cash generation capability of the business. During the nine months gone by, our CFO to EBITDA conversion was a staggering 102%. Considering the superlative performance, the Board has recommended an interim dividend of INR3 per share.
With these updates, I also welcome Raj Gil as the Group CFO and would request him to quickly introduce himself and highlight his key areas of trust all of you guys.
Rajeshwar Singh Gill — Group Chief Financial Officer
Yes, sir. Thank you,, and good day, everybody. So firstly, let me introduce myself. My name is Raj Gil, the newly appointed CFO of Roots Mobile, and I’m terribly excited to be here and work with you all. And in terms of kind of focus areas, and clearly, we are very much focused on driving value and the key pillars of that will be clearly driving synergies and focusing on revenue opportunities to strategic through partnerships, but also cross-sell, upsell and driving efficiencies across the Proximus Global family. And to that end, I’ve been working very closely with Proximus Global to unlock key areas of growth for the next phase of our growth journey. And so again, looking-forward to working with you all and excited to be here. So I would now hand over to for the next slides.
Vinay Binyala — Chief Strategy Officer
Thank you, Raj. Good afternoon, everyone. It’s a pleasure to speak to all of you. Wishing you a very Happy New Year. We already uploaded a quarterly earnings presentation on our website as well as on the stock exchange websites. Hope you had a chance to go through the presentation. Adding to the overview shared by Gautam, I will run you through the highlights of our financial and operating performance during Q3 FY ’25 and nine months FY ’25. Despite the industry headwinds as highlighted by, we have delivered industry-leading Y-o-Y growth of 13.1% in the nine months FY ’25. Revenue from operations grew from INR30,063 million in nine months FY ’24 to INR34,6 billion in nine months FY ’25. We have delivered 150% growth in the new product revenue, 60% growth in new — in revenue excluding new products over the last 11 quarters. EBITDA has grown by 60% over the same-period. This translates to a CAGR of 40% in the quarterly new product revenue, 18% in the quarterly revenue excluding new products and 19% in the quarterly EBITDA. This reflects our consistent business performance over the recent past despite evolving industry dynamics. You may refer to Slide 13 of the earnings presentation to see more details on this.
Now to discuss some of the key business metrics. In volume terms, we processed 116.6 billion billable transactions in the nine months FY ’25. Compared to this, we processed 38.9 billion billable transactions in Q3 FY ’25 versus INR31.2 billion in Q3 FY ’24 and INR40.5 billion in Q2 FY ’25. Average utilization per billable transaction marginally increased from 27.5 per se in Q2 FY ’25 to 30.4% in Q3 FY ’25. This was driven by a change in the mix of domestic and ILD traffic volumes in India. In nine months FY ’25, we had net revenue retention of 105% with 90% recurring revenue. The same is discussed on Slide 11 of the earnings presentation.
Another key aspect is the geographic mix of our business. In terms of geography, India continues to be our largest market by termination, accounting for 51% of our revenue by termination. The details on other geographies which we focus on are available on Slide nine of the deck. We continue to witness strong momentum on the next-generation products, which grew by 21% on a Y-o-Y basis. You can see the details on Slide 7. Gross profit margin was sustained at 21.1% in Q3 FY ’25. EBITDA grew by 9.1% on a Y-o-Y basis. EBITDA margin though contracted marginally from 12.5% in nine months FY ’24 to 12% in nine months FY ’25. Effective tax-rate for the nine months FY ’25 was 21.2% against the 15.1% in nine months FY ’24. PAT in nine months FY ’25 declined by 4% versus the same-period in FY ’24. Cash-and-cash equivalents stood at INR9,303 million and net cash was INR7,457 million as on December 31, 2024. Cash-flow conversion, which Gautam highlighted in the nine months FY ’25 was very strong at 102%. We onboarded 60 new employees during the quarter. Unfortunately, 57 left us, so net addition was three employees during the quarter.
This is a very quick summary of the quarter and nine months gone by. Thank you. And with that, we will open the floor for Q&A.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask questions may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
The first question is from the line of Joti Singh from Arihant Capital Markets. Please go-ahead.
Jyoti Singh
Yeah, thank you sir for the opportunity and
Operator
Yeah. Hello. Singh, if you can hear us. Please go-ahead with your question.
Jyoti Singh
Yeah. Sir, if you can guide us on the guidance trend going-forward.
Gautam Badalia
Yeah. So, hi, Yai,. So I think we continue to kind of drive industry-leading growth. I mean few things, I mean, which are kind of outside our control, I mean our external factors, macro headwinds, right? But despite that, I think we’ll continue to maintain the kind of growth trajectory that we are talking about. And the endeavor will be to do better than what we have done in Q3 — in Q4. And then going-forward on a three-year basis, I think we already had kind of indicated about a 15% CAGR growth. So largely, I think we’ll try to kind of embark on that kind of a trajectory. And in terms of margins, I think as I said, I mean, there were a few one-offs. Adjusted for that, I think we’ll be in that vicinity of our current operating margins run-rate.
Jyoti Singh
Okay. Thank you, sir. And sir, another question on the shifting on the messaging side. So like earlier we were getting message through message, now we are getting only WhatsApp message. So obviously, it is impacting the margin. So if you can guide us what are the — what kind of opportunity we are seeing going-forward?
Rajdipkumar Gupta
Yeah. Let me start and probably we can talk about — you can talk about other areas. So, if you see, we as a company probably the first Indian company who deployed the RCS maps some of it probably in Bangladesh. And RCS is evolving very big in various markets as we speak right now. So we definitely see I think than that shifting from SMS to WhatsApp, but there are many use cases which is still there on SMS. And as a company, I think we are not only focusing on one channel of communication, but we are focusing on RCS as in a big way and in coming days, we believe that RCS is definitely going to be more attractive — I think more value-creation than SMX, but I think both the products will have the market. And as far as the WhatsApp is concerned, we also supporting lots of customers where the customers are shifting from SMS to WhatsApp. We are also getting those kinds of customer on-board. So I think it’s definitely a channel shift from SMS to WhatsApp, but in that case also, we are fairly well-planned and we already have a platform of technology where we are serving customers for the workplace as well., if you want to add?
Gautam Badalia
Yeah. No, no. Just adding to what Rajeev is saying, I think I think a lot of conversational use cases are definitely moving to the OTD platforms and that’s where I think differentiated, I mean, and kind of a lot of thought leadership needs to kind of go in. I mean, and some of the examples that we have done, I mean in terms of the metro ticketing use cases, we are trying to replicate that for various other industries. And hopefully, I think by the time we do the next quarterly earnings presentation, we’ll come back to, I think the wider audience with few unique use cases, I think that we’ll be able to kind of coin on the conversational platforms. But so I think we are working, working and creating more-and-more such unique use cases across the platforms. And I think seemingly, I mean it seems very, very exciting. I mean, I mean to kind of drive the SMS leg of the business, which continues to be a cash-cow and also capture the conversational pie of the business where through such unique use cases.
Rajdipkumar Gupta
Just to add here like our metal digital solution which we have deployed in India, we have deferred the same solution in English for their metro ticking and that is the kind of opportunity we believe that as a customer global business setup in almost 100 countries. We have a larger market now and where we can use all these use cases in those market and lasting examples of deploying this solution in Indonesia..
Jyoti Singh
Yeah, sure. Thank you so much, sir.
Operator
Thank you. Next question is from the line of Pritesh from Lucky Securities. Please go-ahead.
Pritesh
Yes, sir, between your commentary in H2 and what growth has been some in-quarter three, can you tell where are those misses, if any?
Rajdipkumar Gupta
Sorry, Pritesh, can you please repeat the query?
Pritesh
I said between the commentary of your quarter two, if you check your commentary in the quarter two, then the growth that is coming in at quarter three now. So you had a clear situation where H2 you had said that the growth will be far higher than H1. So I’m just wondering if there are any areas of slippages that you want?
Gautam Badalia
Fair point,. So yeah, I mean that’s a very, very fair observation, though we have demonstrated a higher-growth than Q2 in Q3. But I think one thing I think in terms of the domestic volumes, I think the domestic volumes have come off a little bit. That’s largely because I think till Q2, we — I mean for a particular bank, we were getting their entire share of traffic while there were two CPaaS players in paneled with the bank because of, I think, some issues with the platform of the competition. Unfortunately, I mean in Q3, I mean the platform of the competition, I mean started working fine. So we lost that volume. So that actually led to a little bit of an impact in terms of the domestic NLD business. But for that, I think we have witnessed almost mid to — I mean close to mid teen kind of a growth in terms of volume on ILD and rest of the world. So I mean, from that perspective, I think it was a very strong quarter. It was only on the domestic front, I think where because of — I mean, I mean we were getting that opportunistic traffic, we lost the traffic in Q3. So that was only the slippage, if I were to kind of Call-IT out. And had a little bit of impact on the new products front, largely driven by, I mean the change in pricing strategy. I mean that played out, I mean by WhatsApp. I mean, but for that, I think it was a pretty strong quarter from our perspective.
Pritesh
And is there any other, say on a nine-month basis where you can tell us how much is the tele signs yeah,
Gautam Badalia
Yeah. So on a Nine-Month basis, I think with we have done close to about nine 200 to 298 odd crores of business.
Pritesh
So let’s say the INR300 crores of business coming from and then you had the Vodafone — Vodafone deal execution this year, right?
Gautam Badalia
That’s correct. That’s correct.
Pritesh
So if you could then tell which are the pieces of business we should have declined and how much is the pricing decline?
Gautam Badalia
So this INR300 crores also has I mean on a like-to-like basis, last year also we had a decent amount of business with because they were our existing clients.
Pritesh
So not this entire INR300 crores, INR100 crores. That was just INR100 crores last year. Last full-year was INR100 crores.
Gautam Badalia
Come again to sorry, I missed your voice there.
Pritesh
The full-year was INR100 crores, right?
Gautam Badalia
No, no, no. Last full-year was INR150 crores,
Pritesh
A 150, okay? Yeah, yeah. And Vodafone.
Gautam Badalia
So Vodapon, again, I’m kind of trying to highlight, Vodafone actually is a supplier, so we are getting the volumes from the enterprises. So across all enterprises, we have seen growth. I think where the growth has kind of been a little muted has largely been with the aggregator business of ours, where because of issues around the AIT, the artificially impacted traffic, I think that’s where I think the business has kind of got a little impacted. But for that, I think on the enterprise side of things, business continues to be rock-solid.
Pritesh
And okay. And any areas of pricing decline?
Gautam Badalia
So this quarter, I think we have on an overall basis, we’ve seen — seen pricing, I think pretty much I mean, be stable and marginally increase. So there isn’t any much significant declines per on a Nine-Month basis.
Pritesh
And the ILD pricing adjustment would have flowed in this year, right, the nine months?
Gautam Badalia
Yeah. So essentially, I think you’re right, in the first-half, I think there were certain adjustments are better than normal. So we’ve seen a — I mean growth happening both on volume front as well as on the nine months, I’ll — so Pritesh, I can come back to you on the nine months. I don’t have it off-hand, but I can share that perspective.
Pritesh
Okay. Thank you.
Operator
Thank you. Next question is from Yash from RSP and Ventures. Please go-ahead.
Yash Darak
Am I audible?
Gautam Badalia
Yeah, go-ahead.
Yash Darak
So a few bookkeeping questions. So as you rightly said that employees have increased by 3% in this quarter on a net basis.
Gautam Badalia
Turbulent, not very clear.
Yash Darak
Hello?
Gautam Badalia
Yeah, go-ahead.
Yash Darak
Yeah. So employee cost has increased by quite a bit while the net additional employees only three employees. You please explain what how has the employee cost increased so much?
Gautam Badalia
Yeah, yeah. So I think in the employee cost base, there is a long-term incentive plan, I think, which is there, which is almost to the tune of about INR5.77 crores, which was not there and that pertains to July to December of in 2024. So essentially, I mean the entire impact was taken in the quarter gone by. And as I mentioned, I think the total operating overheads, if you were to look at it, for the last quarter, I think about INR10 crores of the operating overheads is non-recurring. So you can pretty much, I mean, on a run-rate basis going-forward, adjust that INR10 crores into the operating cost run-rate.
Yash Darak
So are we expecting the employee cost trajectory to be going on or is it going to reduced by INR10 crores?
Gautam Badalia
No, no, it wouldn’t reduce. So I think if you add-up the employee cost-plus the other expenses, which includes exchange loss. So what we are saying is about INR10 crores of that pie is non-recurring. So going-forward, about INR110 crore would be the running base.
Yash Darak
Yeah, got it. And what about the employee cost? Is it going to run-in the same trajectory or is it going to decrease somewhere since the incentive plan wouldn’t be there?
Gautam Badalia
The incentive plan would be there for the calendar year as well. So as I said, I think last quarter had an impact of two quarters. So it will reduce to about INR3 crores per quarter, which was about INR5.77 crores for — I mean, which got booked in Q3 FY ’25. Going-forward, on a quarterly basis, that run-rate will be about INR3 crores till the end-of-the calendar year.
Yash Darak
Okay. And secondly, if you could explain why the interest cost decreased EBIT and the effective tax-rate guidance for the year.
Gautam Badalia
Yeah. So the interest cost has reduced because we have retired a loan that we had during the month of December. Early December, I think we retired a loan that we had. And in terms of the effective tax-rate, I think it is fair to assume it to be in the vicinity of 20%.
Yash Darak
Okay. And a final question, in the beginning, you said that there is an issue of inflated traffic — in terms of integrate traffic. If you could explain what that is and how does it affect your business?
Gautam Badalia
No, essentially, what has happened is I think globally, I mean, if you remember maybe a year and a half back, I think when I mean the Twitter deal was happening at that point in time, Elon Musk had called out about a lot of 5% to 10% of the traffic coming onto the Twitters platform was actually fake bought traffic. And this was kind of an issue that I think all large global enterprises were grappling with. So — and it led to a larger introspection by a lot of large global enterprises. And since then, I think I mean a lot of lot of these artificially generated traffic which enterprises were paying for, which wasn’t yielding them any ROI per se, that has completely kind of been shaved off from the industry growth. So this is one area I think that I think the overall CPaaS industry kind of grappled with over the course of the last one, 1.5 years.
Yash Darak
Okay. Any guidance for the full-year FY ’26 move forward?
Gautam Badalia
I think let us try and kind of close — close the next quarter, I mean, mean and kind of demonstrate a stronger performance than Q3. And I think then we will kind of reassess and come back to you with the guidance for the subsequent year. But on a three-year trajectory basis, I think we are talking about a 15% CAGR growth.
Yash Darak
Okay. Thank you. Thank you. Thank you.
Operator
Thank you. Next question is from Nikhil Choudhary from Nuvama. Please go-ahead.
Nikhil Choudhary
Hey, hi. Good evening, everyone. Thanks for the opportunity. First,, just want to understand a update on guidance part. How we are thinking the exit run-rate for us will be in Q4 FY ’25. Earlier the guidance was 18% to 20% — 22%. So how we should think about Q4?
Gautam Badalia
Yeah. So Nikhil, I think the endeavor will definitely be to do better than Q4 — Q3 that we have performed. I think the run-rate also kind of is kind of deparating the same whether — I mean so the endeavor will be to kind of really push the anti. I mean in terms of the growth there. So yeah, I think we’ll definitely do — we’ll endeavor to do better than what we have done in Q3?
Nikhil Choudhary
Sure, got. Second thing, your comment that related-party volumes are coming at a lower-margin. Why there will be lower-margin on related-party volumes?
Gautam Badalia
No, essentially, I mean the related-party approvals and mechanism, I mean that’s been kind of validated by a large accounting firm as well has been — I mean at an EBIT margin level, I mean most of these transactions are happening close to in and around our EBIT margin levels and hence, I mean which is lower than our operating margins. So to that extent, I mean, it is dilutive at the operating margin level.
Nikhil Choudhary
But any reason for that to happen, let’s say, going-forward if volumes keep on increasing from then there should be margin-dilutive. Is this fair understanding?
Gautam Badalia
Yeah. So this is governed by a very detailed exercise done by one of the large big four firm and I think they do this assessment on a periodic basis. So whenever I mean, there is any material change, we’ll definitely Call-IT out. But today, I mean some of these related-party transactions are happening in and around our EBIT margin level.
Nikhil Choudhary
The last one, just want some clarity on the contingent liability for one of the contracts we created. Any details and updates there?
Gautam Badalia
Yeah, yeah. So I think this is a contract I think where — so this is actually an exclusive firewall contract in Southeast Asia where what has actually happened is there have been challenges in terms of, I think increased sanction conditions where a lot of social media apps have been banned and there are some structural shifts happening in that market. So I mean, we are in the midst of a renegotiation with the partner invoking the contractual rights under the signed agreement where some of these structural shifts or any change in their existing conditions, I mean, gives us the right to negotiate or renegotiate the terms of the agreement. So we’ve already triggered that. There have been a couple of rounds of negotiation there. So hopefully, I mean, we should — we should be able to kind of come to an amicable solution there. Since this is an ongoing discussion and we have not been able to close that discussion and considering the materiality of the contract value, I think the auditors deemed fit and even from a management standpoint, I mean, we thought it would be prudent and pertinent to kind of get this captured as an emphasis of matter.
Nikhil Choudhary
Sure, whether. Thanks. Thanks for that and good luck for coming.
Gautam Badalia
Yeah. Thanks.
Operator
Thank you. Next question is from Yas Dedia from Maximal Capital. Please go-ahead, sir.
Yash Dehlani
Good afternoon. So this is here. So I have two queries. One is just from my understanding, so now we are moving in terms of channels moving from SMS to, let’s say, WhatsApp and other communication modes. So in terms of the pricing, how do they differ? Are we getting lower-price per transaction? And in a sense, then there is a revenue gap that we’ll have to pull. So that is one. And second is you had that edge that you — so from a clients’ perspective, you will be having tie-ups with all telecom operators, et-cetera. So you can provide that sort of a single solution which the client would be finding very difficult to do it himself. Now in this mode where basically things are being done over Internet rather than SMS. So does that go the way for you?
Gautam Badalia
Yeah. So in terms of — yeah,,
Rajdipkumar Gupta
Hi, it’s a very good question. Let me start with this. Did you. Also understand the opportunity as a group we bring on TV. Let’s take example of product, which are all completely security-based product like this is identity and this is product. And these products are — we have a direct access of all the product what they have built and we can bring all these products to markets where we operate will create more value to Mobile. Along with that, you need to also understand this is one of the largest wholesale voice player in the world and they are providing voice solution to the global operator as well. We will also get direct access to all operators where-is supporting them to sell our product as well as a part of our solution. So it is not just SMS as a one solution offering or whatever one solution offering, we are not talking about engage, which is a customer engagement program platform along with that security, which is our secure products and then the connect, which is our connectivity piece. So all these capability we have now in-house as part of one team. Before when we go to a single operator, we only issue to our — like firewall. Along with the firewall, we have additional security product along with that, we have SMS, and other channels. So our portfolio is grown multifold and we can actually offer multiple solutions to the same customer or a new customer. I think that is the advantage being on-table as one single group. And I think one need to look at Rue Mobile as a company where we have a solution which is combined a solution of bits as well as yeah you can add to this.
Gautam Badalia
Yeah, yeah, yeah. So, yes, I mean, does that answer your query or you want anything any other additional clarification.
Yash Dehlani
On the revenue that we realized for transaction, I understand now you have a broader suite of products, but now if the transactions were to move from SMS to, let’s say, WhatsApp, do you realize similar or lesser and to what extent lesser sort of a revenue per transaction?
Gautam Badalia
It’s more than SMS for sure, I can tell you.
Yash Dehlani
Okay. Okay. And secondly, given –.
Gautam Badalia
Just to highlight, just to highlight, I mean, the use cases are different. I mean, so per se, I mean, one is not cannibalizing other. I mean, so there are different use cases, I mean where SMS is being used and conversational messaging, I mean, is used for a differentiated use-case?
Yash Dehlani
Understood. And given that where we are seeing some shift also. New product revenue, which is — which where we have grown at 20% odd, which was probably the aspiration for the entire company. Isn’t it too low-growth number for something which is at a nascent stage and there we are also getting the benefits of synergies from the group as a whole.
Gautam Badalia
No, it has a little bit of an impact because of the WhatsApp and what pricing, I think overall, I think got edit southwards. So it also has that effect, I mean, as part of the overall kind of revenue number growth that we have garnered there.
Rajdipkumar Gupta
So what else to add out here that this whole merger and I think everything is announced in the I think, month of January 10th or mid December but now we have access of RCS, whatsoever one solution to all the existing customers of these two companies as well. And that is a big opportunity we see in coming days for.
Gautam Badalia
Yeah, yeah, fair point. I think some of those process synergies, I think it’s more a timing effect. It is a matter of time that we’ll start to kind of now block those cross-sell synergies. So I think the entire Global team is kind of very, very optimistic and very kind of excited about the new products opportunity and we are clearing some big-ticket business.
Yash Dehlani
And sir, earlier we had a vision of reaching $1 billion in revenues in three, four years from now. And now I think our guidance is more like 15%, so more like a 50% growth over three years. So have we revised down our sort of aspiration to in three, four years meaningfully?
Gautam Badalia
So I think right now, I think the industry is going through a little bit of a structural, let things stabilize. I mean what we can kind of always definitely call-out is when the industry today is growing at kind of about 10%, 11% kind of a growth, as I said, I mean, most of our competitors are growing, I mean, a flattish or single-digit growth, we are definitely outperforming the industry. So I mean once there is a little bit of more confidence in the market, I mean the sentiments improve, I think we’ll definitely increase into our growth trajectory. So at this point in time, I mean, we would not want to be very, very overambitious in terms of calling out a very-high number, but that aspiration of $1 billion definitely is an aspiration that we want to achieve sooner than later. But looking at the current market conditions, we want to stick to that 15% kind of a growth guidance for the next few years? 15% CAGR, yeah.
Yash Dehlani
Okay. And finally, on your attrition rate, now this looks to be as high as much higher than any of the IT services company also. And since you know there generally the job profile is a little bit different than what is expected out of a tech-focused company. So how do we see this do we see this 20% 25% attrition rate to be lowering and what are the rig rate attrition rate in this? How do we see this situation?
Gautam Badalia
No, no. So I think let’s look at it holistically right now. I mean, I mean, let’s look at — because I mean, we are talking about Proximus Global as an integrated framework, right, and where we are looking at drawing kind of generating synergies. And that synergies, I mean will entail a little bit of cost optimization as well, so that we remove redundancies in the system. So I mean, historically, our attrition rates have been kind of at par with the industry. And I mean for this quarter, I mean a little bit that has happened. I mean it’s a function of a wider integration initiative I think across the group.
Yash Dehlani
Thank you okay. Thank you and all the best, sir.
Operator
Thank you. The next question is from Kostav from BMSPL Capital. Please go-ahead.
Kaustav Bubna
Yeah, thank you for taking my question. So you spoke about Proximus Global and all route bricks and is grouped under one umbrella now. But could you speak more about currently in the current formation, in current formation if root accesses client, what is root paying for? I mean, is there some sort of a transaction? Is Telesign getting a certain percentage of the financial gain from that transaction? That’s the first question. And the second question is where do we go from here? We’ve spoke on previous calls about that because I think first had a few years ago had tried for an IPO and then that did not happen and now Croxims has brought into route. So it’s — could you give some sort of direction on where do we go from here? Here? Is there a potential of tele merging like getting listed through route or speak a little bit about both these things?
Gautam Badalia
Yeah. So in terms of the first question that you had. So yeah, yeah. So all the related-party transactions that we do, largely, I mean they are on a cost-plus markup basis. The markup, as I said, I mean, it’s closer to the EBIT margin levels. So that’s the broad framework of transactions that we do. I mean it’s — and it applies both sides of the equation. In terms of, I mean I’m Proximus Global, I mean the broader strategy around there. I mean, so, I mean they’ve been doing phenomenally well in terms of growth. I think where they were kind of looking at was a lot of cost offshoring and that’s where I mean India today continues to be, I mean one of the key markets from a GCC standpoint. And then considering mobile, I mean we were always functional where we were able to demonstrate high-growth and with the — I mean by driving profitability as well. So some of that I think as part of these integration synergy exercise, which even Raj alluded to, will be the cornerstone I mean to kind of drive going-forward. And in terms of merging integrations and all, I mean right now, I mean every — all the options are open. I mean nothing, nothing is kind of — everything is at the drawing board level. I mean there is nothing concrete that has kind of been kind of discussed, finalized. So I mean it will be difficult to call-out or very premature to Call-IT out right now.
Kaustav Bubna
Understood. When you say how much — how much revenues is Root right now doing in the digital identity business?
Gautam Badalia
So currently, what we are doing, we were already doing this with, which is our wholly-owned subsidiary. We were doing close to $1 million already with them. And as I think we’ve highlighted, I think TeleSign has a very — I mean, a significantly more evolved digital identity stack. So we’ll leverage their strength of the stack and take it to customers but a lot of lot of these digital identity solutions needs — I mean governance from — I mean the data prevacy regulations and stuff. So it requires a lot of, lot of — I mean so little bit of approval process. I mean in India in particularly, I mean with the DPDP law, I think recently, I think kind of being involved. So some of these things are being navigated, discussions are ongoing with regulators. We are doing sandbox testing, I mean for some of those solutions with enterprises and telcos. So I think it’s moving in the right direction, but I mean, we haven’t seen — I mean any significant revenue from that coming through right now because I mean it will entail it’s a little longer sales cycle, but once we are able to demonstrate the value prop to an enterprise in terms of helping them curb the digital fraud, I think we believe, I mean it has potential.
Kaustav Bubna
Right? And when you say is INR300 crore business in nine months, what business is this?
Gautam Badalia
No, this is all — I mean for destination where we have better cost economics, they are using our routes to terminate their enterprise traffic.
Kaustav Bubna
Okay. Okay. Understood. Okay. Understood. Okay, great. Thank you so much.
Gautam Badalia
Thank you.
Operator
Thank you. The next question is from Shah from Paris Investments. Please go-ahead.
Saumil Shah
Hi, thanks for the opportunity. So we’ve been always guiding for a 13% EBITDA margin and I mean even in the previous call, you were mentioning that 13% EBITDA margin is our endeavor to reach. But for the nine months, we are still at 12%. So are we facing severe competition? And would you like to revise our guidance?
Gautam Badalia
No, so I’ll tell you, I mean, so as I said, I think I mean the nine months gone by had few cost elements, which are one-offs. I mean a large integration kind of happened. There were few incentive schemes that were rolled-out. When we were giving that guidance, I think some of those things were not baked into it. So, and particularly, I think the most important thing is the related-party transaction that’s happening, that’s happening today at a margin which is lesser than the operating margin for the company. So, I mean if you adjust for that, I think we are already at a 12.33% kind of a EBITDA margin trajectory. And I mean we still maintain that we’ll be closer to I mean 12.5%, 13%
Saumil Shah
For this year.
Gautam Badalia
For this year-on a, yeah, adjusted basis, we’ll be closer to that 12.5%, 13%. So non-GAAP basis, yes.
Saumil Shah
Okay. And the related budget transition what you mentioned, so that is this INR300 crore which we are doing that which we did for nine months. That. So as the scale increases, then I mean, what do you expect for coming years?
Gautam Badalia
So I think we are constantly kind of looking at all avenues where we could maximize this. I think now a decent amount of run-rate is already kind of baked into on a — in terms of monthly throughput. Yeah. And I think I think the market is also very dynamic. So I mean this needs to be kind of looked into on a real-time basis regularly. So at this point in time, I think there are some additional routes that we have been able to identify during the course of this month. We are looking at increasing the throughput there, but it will be a minor kind of an increase. We’re not looking at a very major increase, I mean from the current run-rate.
Saumil Shah
Okay. So as of now for 3/4 we are saying we had a INR300 crore run-rate for 3/4. So it’s INR100 crores per quarter.
Gautam Badalia
A little more than that because the throughput started from June 18 onwards. Okay. And one other thing I think essentially what’s not played out yet is the cross-selling synergy where, I mean, Global selling our omnichannel solutions and we are kind of selling solutions around digital identity and some of the pieces, I mean that BIX has in terms of their platform capabilities. So some of those things, I think we haven’t seen the — I mean a revenue traction yet, but I think we’ve already made a few pictures and submitted our proposals. So as and when we have it, I mean, some of these opportunities could be big and these are high, high in terms of margins.
Saumil Shah
Okay. Okay. That’s it from my side. Thank you and all the best.
Operator
Thank you. Next question is from the line of Meet Raji from Equirus Portfolio Management. Please go-ahead.
Meet Rachchh
Yeah, thanks for the opportunity. Gautam, sir, any update on large deal wins apart from the metro ticketing solution any large RFPs in which we have been participating organically as well as in synergy with the parent company?
Gautam Badalia
Yeah. So there are some large deals in the offering. Offering I mean often we know, I mean we have stand very good chance. I mean some of them, but I mean till it’s kind of officially kind of there in black-and-white. I mean we’ll not want to Call-IT out but I think, I think there is some good momentum there.
Meet Rachchh
And what could be the average size for a large deal win for CPUS industry?
Gautam Badalia
And but it is difficult to call that number out yet. I mean, let us first sign it, I mean we’ll definitely kind of make it public.
Meet Rachchh
Sure, sure. Thanks.
Gautam Badalia
Yeah, but the only thing we can tell you is larger size.
Meet Rachchh
Okay, okay. Okay. And in terms of tenure, it will be like 3-year, 5-ye, 7-year deal or one year and then you will be laughing.
Gautam Badalia
It will decide the long-term deal. So 10 years we can’t mention right now,
Meet Rachchh
Thanks.
Operator
Thank you. Next question is from Kartik, who is an individual investor. Please go-ahead.
Kartik
Hi, can you hear me?
Gautam Badalia
Yeah, go-ahead. Hi,.
Kartik
Thank you for the opportunity. So I have two questions. First is more on the — maybe my understanding. So — and based on what participants had spoken and essentially when you move from OTP-based digital authentication to digital identity solutions that you’re talking about, I was under impression that every time an OTP gets created, you get some you know revenue on that, right? So obviously you’re using losing some revenue when you move to digital solution, right. So and I know you talked about trying to see you know-how you can tap more revenue-based on digital identity solutions. Is it possible — I mean, first of all, is the understanding right? And second is, how much revenue loss are we looking at when we move away from OTP-based solutions to non-OTP solutions.
Gautam Badalia
No, so this will — yeah, this is right.
Rajdipkumar Gupta
I think we need to also understand the digital adoption is coming up with the different use cases also, right? There are many use cases of customer support is moving out to WhatsApp, which is not the SMS piece of it, right? We need to understand is our omnichannel piece as opportunity for the entire ecosystem. Okay, it is not just SMS moving from SMS channel to WhatsApp channel. It is use cases which has been created because of the channel that is a potential we see in long-term coming years to come. RCS has shown potential as compared to WhatsApp along with the different products which we have, like digital has a different market itself, right, because we know the digital adoption is increasing, digital for will also increase, but right now, we probably have that unique solution for this market like where we operate, we can create more value out of that. So I think we should not think that over SMS is low, then these channels will know. Load. There are different use cases, which is going to remain there and WhatsApp or even for RCS may have a different use cases and we will see the growth in those channels come because of the new use cases arriving right now.
Gautam Badalia
And just adding to what Rajeep is saying, the biggest reason for digital fraud today, I mean is because with OTB, you have something to fish, right? And with digital identity solution, you pretty much make it silent. So if you don’t have anything to finish and the entire two-factor authentication happens at your backyard with an algorithm that I think we’ll be able to kind of that the digital identity TD solution is able to provide. So we would make the same money other it would be better in terms of margins, but it wouldn’t — I mean reduce the TAM from our perspective. I mean, the TAM will only increase and it will only increase our stickiness with enterprises.
Kartik
Actually that’s hard to know. Thank you, sir. So the next question is more on the — I think you talked about using LLMs for better customer service. And I was looking at your presentation, you also mentioned you have about 20 data centers. And with the recent deep seek news that is running around. Do you foresee in using model and potentially that reducing your cost and helping — I assume you use some sort of media GPUs for these 11 based solutions and do you know what are your thoughts on the recent deep per mile.
Gautam Badalia
So in terms of the LLM models, I think definitely, I mean there is a lot of disruption around it and we believe I think this LLM models from a communication standpoint could really kind of be a big, big differentiator, I mean for the world of communication. And within that, I think we are already looking at kind of erupting some of these models for internal optimization in terms of the ticketing systems, in terms of creating intelligent — intelligent data insights, data models, which we can then kind of through AIML, make it more-and-more robust. I think some of these things are already kind of happening as we speak. So we believe, I mean with LLM models, I think the opportunity and essentially, I mean the personalization and effectiveness from for any campton that an enterprise runs can significantly improve. And that is what I think we are already kind of working on internally.
Kartik
Okay, do you use NVIDIA GPUs or do you use accelerators or just GPUs? Do you know that?
Gautam Badalia
Sorry, can you please repeat your query?
Kartik
So do for the LLMs, do you use GPUs or intel CPUs or do you know that can you throw some light on the infrastructure use for LLM infants here or.
Gautam Badalia
Probably that be different discussion we can have greatly we can add more technical people in this call so better to have a one-on-one call with you to know more about our strategy.
Kartik
Okay thank you.
Operator
Thank you very much. We’ll take that as the last question. I would now like to hand the conference over to Mr Rajde Kwar Gupta for closing comments.
Rajdipkumar Gupta
Thank you, everyone. Thank you for joining and have a nice evening. Take care. Thank you.
Operator
Thank you very much. Thank you. On behalf of Mobile Limited, that concludes this conference. Thank you for joining us. Ladies and gentlemen, you may now disconnect your lines.