ROUTE MOBILE LTD (ROUTE) Q4 FY22 Earnings Concall Transcript

ROUTE MOBILE LTD (NSE: ROUTE) Q4 FY22 Earnings Concall dated Jan. 23, 2023

Corporate Participants:

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

Suresh Jankar — Chief Financial Officer

Analysts:

Abhishek Bhandari — Nomura — Analyst

Manik Taneja — Axis Capital — Analyst

Mohit Motwani — Nuvama — Analyst

Dipesh Mehta — Emkay Global — Analyst

Moez Chandani — Centrum Broking — Analyst

Amit Chandra — HDFC Securities — Analyst

Ashish Chopra — Goldman Sachs Asset Management — Analyst

Mohan Kumar — Individual Investor — Analyst

Swapnil Potdukhe — JM Financial Limited — Analyst

Presentation:

Operator

Good evening, ladies and gentlemen. I’m Tanvi, moderator for this conference. Welcome to the conference call of Route Mobile Limited, arranged by Concept Investor Relations, to discuss its Q3 and Nine Months FY ’23 Results. We have with us today, Mr. Rajdipkumar Gupta, Managing Director and Group CEO; Mr. Gautam Badalia, Group Chief Strategy Officer and Chief Investor Relations Officer; and Mr. Suresh Jankar, Chief Financial Officer. [Operator Instructions]

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. Kindly refer to Slide number 2 of the presentation for the detailed disclaimer. Please note this conference is being recorded.

I now hand the conference over to Mr. Rajdipkumar Gupta from Route Mobile Limited. Thank you. And over to you, sir.

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

Thanks, Tanvi. Good evening, everyone, and wish you all a very Happy New Year. I want to thank the entire RML team for delivering a staggering performance quarter-after-quarter. We have yet again succeed — exceeded our expectation in the quarter gone by. It gives me great pride to highlight that we have surpassed our pre-IPO FY 2020 audited revenue of INR9,563 million and adjusted PAT of INR843 million in just this quarter of Q3 FY 2023 by clocking our best quarterly revenue of INR9,857 million and adjusted PAT of INR1,010 million. This is despite the recent COVID issues, the Russia-Ukraine war, supply side issues and current headwinds in various markets.

Our focused approach, deep domain expertise, and most importantly, our modular approach of creating multiple levers of growth across multiple geographies have been the bedrock of our success. We continue to progress our — progress significantly growth and quality deals, means all across the globe and including India.

Some of the key highlights of Q2 FY — since Q2 FY ’23 are as follows. We won a couple of exclusive end-to-end deal with mobile network operators, RML is now exclusive partner for international A2P messaging for leading MNO in Sri Lanka as well as for Uganda Telecom Corperation in Uganda. While there is a lots of discussion about mobile network operators stepping into our domain, this deal will justify why Route Mobile is an individual partner to the MNO. Further, there are various other unique opportunities with MNO that we are working on. And I’m confident that there will be more such partnerships that we will announce in days to come.

In terms of our geographical expansion, roofing is present in GCC region with entry to the Kingdom of Saudi Arabia with cited license win. We formed a step-down subsidiary in Mexico as a part of our Latam expansion strategy and stepped down a subsidiary in U.K. to focus on mobile identity and other products. Route Mobile has awarded the Best Governed Company in Listing Segment Emerging Category at 22nd ICSI National Award for Excellence in Corporate Governance.

Enterprises are increasing their adoption of new products and we continue to witness strong momentum. The worldwide growth of digital transaction carries a substantial increase in digital fraud, which presents a critical challenge for all the stakeholders. To address this issue, we are launching a Mobile Identity Management product that will help enterprise to gain actionable insight and craft digital fraud and provide a simple yet more practical solutions such as password-less authentication. Our solutions already lies in Colombia and Peru and is being used by marquee enterprise, including banks.

For our email business, we have upgraded our email infrastructure, which was delayed, but due to the hardware supply challenges, this new set-up will enable us to build large enterprises for email businesses that includes banks. We are indeed very optimistic about our email play. Our senior management team has been doing a fantastic job during Route Mobile’s superlative performance across multiple geographies to accelerate our next phase of growth and profitability to maintain our razor sharp focus there will be some realignment at the senior management level, including hiring seasoned industry professionals to drive dedicated SBU. We shall make relevant disclosures concerning these at the appropriate time.

Last but not the least, the board has decided to meet on January 26 to discuss the proposed interim dividend considering the superlative performance of the company in Q3 FY ’23.

With this, Gautam will walk you through the financial highlights in more details. Thank you. Over to you, Gautam.

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

Thank you, Rajdip. Good evening, everyone. Wishing all a very Happy New Year 2023. We have already uploaded our quarterly earnings presentation on our website as well as on the stock exchange websites. Hope you had a chance to go through the presentation. I’ll quickly summarize our financial and operating performance during Q3 FY ’23 and nine months FY ’23 before opening the floor for Q&A.

At the backdrop of our best quarterly performance till date, we have indeed demonstrated that we are one of the largest CPaaS companies and one of the most diversified players in the emerging markets, if not the largest. Further, the undercurrents in the business continues to be very robust despite the recessionary headwinds. We will definitely surpass our FY ’23 revenue guidance of 60% by a margin.

The key takeaways from our financial performance in Q3 FY ’23, is the superlative growth. We demonstrated Y-o-Y revenue growth of 75% and Q-o-Q revenue growth of 17% with focus on improving profitability. We have done fairly well on both counts, as highlighted in Slide 18 of the presentation. In fact, as Rajdip highlighted, we have surpassed our pre-IPO FY ’20 revenue and adjusted PAT in a single quarter, that is Q3 FY ’23.

In volume terms, we processed 27.7 billion transactions, which is the highest quarterly billable volumes processed by us till date. In terms of geography, India continues to be our largest market by termination, accounting for over 45% of our revenue by termination. You may refer to Slide 6. And we are on track to surpass our guidance of US$175 million revenue from India in FY ’23. We continue to witness very strong momentum on the next generation products across multiple geographies. We have demonstrated Y-o-Y growth, I mean, for the new products of 53% and Q-o-Q growth of 19%. You may refer to Slide 19 of the presentation.

With respect to certain one-off costs, bad debts amounting to INR58.4 million were written-off in Q3 FY ’23. It relates to Mr. Messaging’s pre-acquisition period. The sale amount shall be adjusted while computing the EBITDA for Mr. Messaging for the purposes of calculating the deferred payouts for the shareholders of Mr. Messaging. There was also a reversal of ESOP expense to the tune of INR82.5 million, owing to resignation of some employees.

With this backdrop, let me walk you through the financial performance. In terms of Q3 FY ’23 performance, revenue from operations grew by 75% from INR5,628 million in Q3 FY ’22 to INR9,857 million in Q3 FY ’23. There was a sequential growth of 16%, rounded off to 17%. Route Mobile’s organic revenue growth excluding revenue from entities acquired during FY ’22 was 34% on a Y-o-Y basis and 17.2% on a sequential basis. Billable transactions increased from INR16.3 billion in Q3 FY ’22 and INR26.9 billion in Q2 FY ’23 to INR27.7 billion in Q3 FY ’23.

Average realizations per billable transactions increased from 31% in Q2 FY ’23 to 36% in Q3 FY ’23. Gross profit margin expanded from 21.1% in Q3 FY ’22 and 22.3% in Q2 FY ’23 to 22.4% in Q3 FY ’23. Adjusted EBITDA grew by 66%. EBITDA grew by 17% sequentially from INR1,094 million in Q2 FY ’23 to INR1,283 million in Q3 FY ’23. EBITDA margin was 13% in Q3 FY ’23 as compared to 12.9% in Q2 FY ’23. Effective tax rate for the quarter was 17%. Adjusted profit after-tax grew 63% on a Y-o-Y basis and 10% on a sequential basis. Adjusted PAT margin was at 10.2%.

For nine months FY ’22 — sorry, nine months FY ’23, revenue from operations grew by 86% from INR13,760 million in nine months FY ’22 to INR25,606 million in nine months FY ’23. In terms of certain KPIs, for nine months, Route Mobile’s organic revenue growth excluding revenue from entities acquired during FY ’22 was 36% on a Y-o-Y basis. The billable transactions increased from INR34 billion to INR79 billion in FY — from nine months FY ’22 to nine months FY ’23.

Average realization per billable [Technical Issues] in nine months FY ’23. We had a net revenue retention of 125%. You may refer to Slide 16 of the earnings presentation. We added over 700 new customers in the nine months FY ’23 across all products. Gross margin — Gross profit margin expanded from 20.9% in nine months FY ’22 to 22.4% in nine months FY ’23. EBITDA grew by 72% from INR1,879 million in nine months FY ’22 to INR3,237 million in nine months FY ’23.

In terms of operating leverage, EBITDA as a percentage of gross profit stood at 57%. EBITDA margin was at 12.6% in nine months FY ’23. Effective tax rate was 12.3% for nine months FY ’23. Adjusted profit per tax grew by 93% from INR1,450 million in nine months FY ’22 to INR2,803 million in nine months FY ’23. There was improvement in adjusted gross profit margin, which inched to 10.9% in nine months FY ’23. We onboarded 66 new employees during Q3 FY ’23 and 61 employees left during the period.

Net cash as on December 31, 2022 was INR7,482 million as on December 31, 2022. Operating cash flows for nine months FY ’23 was marginally negative, owing to some strategic business initiatives towards a large firewall contract and discharge of a prior GST liability under reverse charge mechanism. We believe the EBITDA to OCF conversion will start to trend 50% and above from Q1 FY ’24 onwards.

With this, we open the floor for Q&A. Thank you.

Questions and Answers:

Operator

Thank you very much. [Operator Instructions] The first question is from the line of Abhishek Bhandari from Nomura. Please go ahead.

Abhishek Bhandari — Nomura — Analyst

Yes, thank you for the opportunity, and Happy New Year to the management. Sir, I just had questions around the competitive intensity in the industry. Some of your peers have been reporting very weakish revenue growth…

Operator

Mr. Bhandari, we are not able to hear you. We request you to please repeat your question.

Abhishek Bhandari — Nomura — Analyst

Is it better now?

Operator

Yes, sir. Yes, sir. We can hear you.

Abhishek Bhandari — Nomura — Analyst

Sorry for that. So let me start again. Sir, I just wanted to get your views on the growth outlook for the industry in medium term as well as the competitive intensity as some of your peers have been reporting fairly weakish revenue growth, though the volume growth is still on the 15% to 20% range. So maybe around the pricing, are you seeing a stabilization? And also, what do you think could be your medium term growth outlook? And also to that, what do you think is the competitive part, especially from some of your peers in the CPaaS itself, like Twilio, as well as the telecom companies who are trying to enter into this space?

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

Abhishek, hi. Rajdip here. Am I audible?

Abhishek Bhandari — Nomura — Analyst

Yes, sir.

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

So Abhishek, I think first of all, I just want to clarify again, our entire growth is not just confirmed one market. Our growth is coming from various different markets. And I think on a competitive side, I think there four, five large CPaaS player all across the globe and we are one of the top Tier 1 aggregator as per the Roku report.

I think our growth is coming from Latin America, Europe, Asia and other markets and Middle East as well. So for me, I think competition is definitely there in global market also, but we are fairly balanced in Africa, Latam and Asia and Middle East. And I think almost all the top aggregator of the world, they use our connectivity in this market. And that is the reason which you see there is a huge growth like quarter-on-quarter from last seven quarters which we have reported.

Gautam, if you want to add to this?

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

Yeah, sure. Hi, Abhishek. So from a growth perspective, I think — I mean, the good thing is the organic revenue growth. I mean, we have surpassed the portfolio of growth rate. I mean, that speaks volumes about, I mean, our execution. And some from the robustness of the business, at this point in time, from — I mean, the month till date, the revenue run rate that we’re clocking, I mean, we have not been kind of witnessing any slowdown whatsoever.

And even for next year, we have good amount of visibility in terms of deals that we have won, the new volumes that will start to kind of kick in. And as Rajdip highlighted, we have multiple engines of growth, multiple levers of growth across multiple geographies. We are very bullish about Latam. And we believe the Latam growth trajectory will be, I mean, very strong, I mean, in days to come and we are investing in the right markets over there.

From a GCC standpoint, I mean, we have kind of now — deeply entrenched into a lot of adjoining markets besides UAE. And we believe a lot of growth will start to come in from some of those markets like Saudi, Kuwait. And in India, I mean, we definitely — I mean, as we have always been highlighted — highlighting that we have been late in terms of our India domestic entry strategy, but now we have kind of making our presence and definitely taking a lot of market share from competition.

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

Just to add, Abhishek, I think our firewall product, I know the kind of deployment we are doing right now with various operators, there is one slide also showing that. I think that particular division is doing really good and we are in talks with multiple operators as we speak. And very soon we will announce some more exclusive partnership.

Abhishek Bhandari — Nomura — Analyst

Got it, sir. Thank you. And sir, you mentioned at the start some kind of leadership changes with new growth plan. If you could elaborate a bit more? I don’t want specific names or something, but what is the news of structure you’re thinking about or is there any difference in go-to-market you will be thinking about from a new growth paradigm? Because it looks like the growth is now more focused on outside India. So maybe you could elaborate on that?

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

So Route Mobile is always — I just mentioned, right? India is just one of market for us. We operate from 22 markets. And every market where we’ve been operating and we see a very solid growth over there.

In terms of the leadership change, I think we are hiring some top management, especially to take care of our Mobile Identity division. We are launching a product in Barcelona, probably, which will be very unique solutions to mitigate the risk of digital fraud. And that is exactly what I think most of the fintech company, most of the — like banks are facing right now. So probably we can say Route Mobile launching their first fintech solution in month of February. And to lead that, we are definitely hiring somebody from industry who has multiple years of experience to lead this product.

Abhishek Bhandari — Nomura — Analyst

Got it, sir. Thank you, and have a good 2023.

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

Thank you very much, Abhishek.

Operator

Thank you. The next question is from the line of Manik Taneja from Axis Capital. Please go ahead.

Manik Taneja — Axis Capital — Analyst

Hi. Thank you for the opportunity. I hope I’m audible.

Operator

Yes, you are.

Manik Taneja — Axis Capital — Analyst

Yeah. First of all, congratulations for the good performance. Rajdip, I wanted your thoughts around the comp sales…

Operator

Sorry to interrupt you…

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

Manik, your voice is not very clear.

Operator

Yes. If you’re using headphones…

Manik Taneja — Axis Capital — Analyst

Is it better now?

Operator

Yes, yes. Are you speaking through the handset now? We have lost the connection for Mr. Manik Taneja. We’ll move to the next question from the line of Mohit Motwani from Nuvama. Please go ahead.

Mohit Motwani — Nuvama — Analyst

Hi. Thanks for the opportunity. I wanted to ask couple of questions. So first question was around the volumes which we know were flattish quarter-on-quarter. So there would have been some impact on some of the geographies. So do you want to call out any geographies where there were some more impact than the other geographies in terms of volumes?

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

Mohit, I think you need to also understand — let me just give you a small example. One single SMS — the international SMS terminating in Bangladesh is being charged INR0.12 and same in Pakistan INR0.14, where when you talk about India, I’ll do messages at INR0.04. So I think it’s the combination of geography mix in which month we have a higher traffic and what price. So one should not look at my numbers without based on volume based on the realization per transaction. Like, as we speak, I think we are working very closely with one of the Sri Lankan operator where each SMS is going to be around INR0.10.

Mohit Motwani — Nuvama — Analyst

Sure. That’s helpful. And can you give us the…

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

I will just add to what just Rajdip said, right? So I mean, just to kind of give you a sense on volume side, so I mean, we’ll also need to account for, I mean, Diwali, while Diwali was in early October, but a lot of the promotional spend, including some of the sale by large e-commerce companies happened in Q2, right, which traditionally happens in Q3. So to that extent, I mean, if you were to normalize it, I mean, there was volume growth that was there and there was also a large ILD price increase that had happened in Q2 and some of that volume also had kind of shrunk because of — I mean, whatever was non-critical had shrunk owing to that. But I think the large impact was because of Diwali being in early October. And hence, a lot of volumes were there in Q2, which was — I mean, which needs to be normalized.

Yeah, over to you.

Mohit Motwani — Nuvama — Analyst

That’s helpful. Can you also provide us the revenue for Masivian and Mr. Messaging for the quarter?

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

Gautam?

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

Sorry. What do you want, Mohit, if you can repeat?

Mohit Motwani — Nuvama — Analyst

Can you provide us the revenue for Masivian and Mr. Messaging for the quarter?

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

Yeah, yeah. So — one second. So Masivian, the revenue was about INR601 million. And for Mr. Messaging, it was INR2,031 million.

Mohit Motwani — Nuvama — Analyst

Sure. Thank you. And for Masivian, considering — I understand that Masivian is one of the strongest quarters with the Q4 of the calendar year as the strongest from Masivian. So how was the year-on-year performance that we witnessed for Masivian in Q4 of the calendar year?

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

So on a year-on-year basis, I think we are looking at over a 20% growth.

Mohit Motwani — Nuvama — Analyst

Okay. And just the last one from my side. What was the — can you give us some color on the contribution of WhatsApp in the new product revenue? Not maybe a specific number, but some color on the contribution from WhatsApp?

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

Mohit, we do report our new products revenue. And it is a mix of, I mean, not only WhatsApp, Viber, various other new products. So I mean, we don’t call out each of these products separately.

Mohit Motwani — Nuvama — Analyst

Okay, okay. That will do. Thank you for taking my questions.

Operator

Thank you. The next question is from the line of Dipesh Mehta from Emkay Global. Please go ahead.

Dipesh Mehta — Emkay Global — Analyst

Thanks for the opportunity. Couple of questions. First about some of the industries which we report. If one do calculation, BFSI’s seems to be showing some mutedness on quarter-on-quarter revenue growth perspective. So if you can provide some sense about — industry-specific commentary about how you see demand trend? And obviously, growth has materially moderated in BFSI compared to your Y-o-Y trend in H1 compared to Q3 what we see. So if you can give some sense?

Second question is about, exclusive arrangement or a deal which we announced for SMS firewall solution in Sri Lanka with Sri Lanka telco. Whether the gross margin would be very different than our enterprise business where we get roughly around 20% gross margin considering it is firewall deal or it could be largely operating like enterprise business, if you can give some sense?

And last question is about cash generation. I think partly earlier, Gautam alluded at about weak cash generation. I’m not clear about the negative or muted cash generation, which he said is for Q3 or for nine months, if you can clarify? And how you expect it to play out for next few quarters? Thanks.

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

Sure. So over to you.

Suresh Jankar — Chief Financial Officer

So I’ll address the second question about firewall like margin. I think most of the firewall solutions are like a SaaS solution and then we become a gateway for those operators. It’s about 30% to 35% margin. It is definitely a much higher than the traditional SMS margin. Yeah, Gautam, you can take the next question.

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

Yeah. So Dipesh, your query around the cash flows. I mean, so when — in my commentary, it was for nine months FY ’23. And this year, essentially, I mean, Q3 and Q4 will have some degree of impact because of the strategic business initiative for a couple of firewall deals. But from FY ’24 onwards, it will result in high free cash conversion. So just wanted to kind of update you about it. Coming to your query on — your first query was around the BFSI, right?

Dipesh Mehta — Emkay Global — Analyst

Right. The volume, yeah. So BFSI revenue growth seems to be muted. If I do the way you give nine months cumulative numbers…

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

I think — Gautam, I think we need to just make it clear. We didn’t see any kind of the growth in the BFSI like volume. Gautam, if you can just answer.

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

Yeah. So I think in terms of financial services, you are right. If you’re comparing this with the — so Dipesh, if you can just help me understand. Are you comparing it on a quarter-on-quarter basis or on a Y-o-Y basis?

Dipesh Mehta — Emkay Global — Analyst

Sir, I’m comparing both way. Q-o-Q, it is muted, so flat. And Y-o-Y also, if I look your H1 growth and now Q3 Y-o-Y growth, H1, your growth used to be 75% plus, almost 80% plus kind of number. Now it is less than half of it. So I just want to get some sense.

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

Yeah. So as I said, I think some degree of this growth was also attributable to Diwali being early in the previous month. And we serve a lot of critical traffic from our perspective. So we are not seeing significant drop I think in terms of the transactional messages from a BFSI standpoint.

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

So I think, Dipesh, you need to also understand, when we onboard a new customer, all of sudden, that volume will be added for that particle quarter. But after that, that volume will become stable, right, for the next quarter or next month. So there were certain banks we have added in the last few quarters. Those volume has been added to last year — maybe last quarter. But the same volume is going to continue within this quarter also. But there won’t be that kind of a jump which has been in the last previous quarter.

Dipesh Mehta — Emkay Global — Analyst

So broadly you are not seeing any demand pattern change across industries because your retail, if I look at is, retail is showing significant weakness, even telecom and allied services, the way we report, is showing some different trend compared to, let’s say, earlier trends. But broadly, you’re indicating we are not seeing any pocket of weakness, particularly on industry side. E-comm also showing, if one look at Q-o-Q, it is double-digit down, even Y-o-Y, it is down now. So I just want to get that sense, the across industry, anything which you want to highlight?

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

I don’t see there’s any — I think we always believe that I think we see lots of digital adoption happening all across the globe in all the markets where we operate. Like we operate Magnum in emerging markets where we see the digital adoption ratio is increasing day by day. And we believe that this transaction is going to increase multi-fold in coming days and we are very bullish about our growth in coming days. Yes, based on certain firewall deals, we may send just 10 million traffic and we make $1 million revenue. So instead of selling 100 million and making $1 million revenue. So it all depends on the market mix also. One need to consider that way.

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

So Dipesh, we also process a lot of ILD traffic when it comes to financial services as well. And because of the price increase, as I said, the non-critical components of the communication, that definitely had impact because the price increase was significant. So I mean, it’s not only related to domestic NLD traffic, it’s a mix of NLD and ILD. And on ILD front, definitely, there was some volume debt which had happened and that’s largely because of the price increase.

Dipesh Mehta — Emkay Global — Analyst

Understood. And last question, in other industries, any industry which is doing exceptionally well for us, if you can call it out?

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

So we have that already laid out in the presentation. So digital native continues to be strong. And we are kind of deepening our wallet share with most of the digital native companies.

Dipesh Mehta — Emkay Global — Analyst

Gautam, I’m referring to the industries which you highlighted, the six industries. Outside of those industries which is doing very well. So if you can try — prefer to highlight anything which is doing well outside of six industries you put in 50?

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

No, no. So as I said, digital native industry, I mean, that continues to be as robust. Even at the size and scale that we’re talking about…

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

So Dipesh, just let me give a perspective out here. I’d like to answer your question. As I said, if I’m serving Google for India, I’m not serving Google just for one country. I have a potential of serving Google for more than 100 countries. If I onboard one single OTT player as a customer, it is very simple for us to just provide a connectivity for the global market, okay? So OTT player and digital-native customers, when they’re onboarded on our platform, they are serving for multiple countries, and that is the growth we see from last few quarters.

Dipesh Mehta — Emkay Global — Analyst

Understood. Thanks.

Operator

Thank you. The next question is from the line of Manik Taneja from Axis Capital. Please go ahead.

Manik Taneja — Axis Capital — Analyst

Hi. Thank you for the opportunity, and apologies that I got disconnected the last time around. I had a few questions. First of all, with regards to the CFO to EBITDA conversion that Gautam alluded to at the start of — in his opening remarks. What you’ve seen is that our cash flow conversion has suffered materially over the course of last three years. And so essentially how should we be thinking about cash flow going forward? Is there a structural reset in terms of the cash flow profile? That’s question number one.

The second question was with regards to the competitive intensity. In the last six months, we’ve seen telecom service providers are becoming much more aggressive, especially when it came to some of the — one of the large contracts. So what are you seeing on the ground now?

And the third question was with regards to any potential price increase either on the NLD or the ILD side. Over the last couple of years, we’ve seen ILD pricing go up. In the past, you’ve alluded to seeing a similar phenomena happen on the NLD side. If you could help us understand what are you seeing on the ground? Thank you.

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

Gautam, you can answer the first question.

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

Yeah, sure, sure. Hi, Manik. So Manik just to kind of give you a perspective in terms of the cash conversion, right? I mean, so over the last three years, we’ve seen structural changes in the industry. So right in the midst of COVID, all the traditional regional companies, I mean, the business was massively impacted and it was only the digital savvy businesses which continued to thrive. And for almost — and for all these large digital technology companies, our receivable cycle happens to be well within 30 days. So 30 days is the credit period.

When the economy started to open up and all the regional traditional companies started to kind of come back to normalcy, that’s when the working capital cycle started to prolong a little bit because most of these regional companies the payment cycles are a little longer than most of the other digital-native companies or large technology giant companies, right? So that actually led to some amount of free cash getting stuck in terms of increased receivables.

As we are kind of inching now towards the more stable environment where the change in the working capital will get normalized as we move forward, it will lead to higher cash conversion going forward. But the only caveat in this is this quarter and the next quarter we have two large strategic business initiative deals from a firewall standpoint, which may warrant some working capital getting stuck. But from FY ’24 onwards, the cash conversion will be far higher and should — that will be trend towards northwards of 50% from a conversion standpoint.

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

Sure. Manik, on your question of competitive like the landscape, as I said, like for me, we compete in a global market and I think the opportunity for me is very high. When we talk about emerging market or in a developed market, I think we are operating and we are serving customers in all the markets. So I think there are very few people, a few companies who are in this space, who are, you can say, top five CPaaS player probably there. And I think we are a champion of emerging countries.

And as I said, most of these CPaaS players, they use Route Mobile as a connectivity partner. And I think we see lots of growth coming from them to Route Mobile. So I don’t see there is any change seen on — because it’s more about the partnership model we work with them rather than competing with them. Yeah, but there are certain markets, certain domestic players where we go, we do compete with them in certain markets. According to me, I think we are fairly well placed and we don’t see much of competition in global market or the market where we operate.

Manik Taneja — Axis Capital — Analyst

Rajdip, my question was more around the domestic market, because over there, we have seen one of the large TSPs get aggressive with one the PSU…

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

No, I think I’ve already — like in my first address, I’ve already clearly mentioned that we work very closely with operators. And one operator coming and trying to disturb the market is not going to work at all. It’s a very large market. And I think India, the digital adoption and transactions are increasing day-by-day. There is a huge market and there’s a market for everyone.

We will treat them as a competition, another competition. If there are 10 competition in Indian market, we’ll take them as a level 11th one. But the question is, again, you should have a DNA of CPaaS player to serve the customer. Onboarding a bank almost six to eight months, and that is something — DNA which we have built in or some of the CPaaS players has built over seven, eight years or 10 years kind of thing.

For them, somebody likes who have a multiple back-up connectivity is also required. There are so many things required in your platform to serve a large banking customer. And I think probably they can win one or two banks or customers, but going and serving end number of customers of that scale is impossible for them, honestly. But again, if there’s a competition, we are happy to compete with them. And I don’t think they are going to sustain with those pricing even if they go and close multiple deals.

Manik Taneja — Axis Capital — Analyst

Sure. Thank you for that detailed response.

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

Thank you.

Operator

Thank you. The next question is from the line of Moez Chandani from Centrum Broking. Please go ahead.

Moez Chandani — Centrum Broking — Analyst

Yeah, hi. Good evening. My first question was on the revenue per transaction, that’s gone up significantly this quarter. So is there anything specific driving that or is it just because of a geographical mix change that’s happened this quarter?

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

Yeah, hi. So it is largely due to the geographical mix. So rest of the world, we’ve seen significant increase and ILD price got also increase for further Indian markets.

Moez Chandani — Centrum Broking — Analyst

Okay. Sure, understood. And also secondly, on your ESOP program. So I understood that there were some reversal of charges this time around. But with your new employees coming in, do you expect higher than expected costs in your ESOP program going forward or do you think that the current levels would sustain?

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

So in terms of the ESOP cost, yeah. So I think I already kind of given that there was some rollback. And whenever new employees will join, ESOP is definitely an employee engagement program from our perspective. I mean, it is there to attract good employees. So it will be there, but the scale and proportion of that may not be as high as what it was last year.

Moez Chandani — Centrum Broking — Analyst

Sure. And lastly, on your cash flow — operating cash flow. So I understand that from FY ’24, you would be at 50% plus operating cash flow, but could you give some indication of what your OCF to EBITDA number will be for FY ’23? What sort of OCF to EBITDA percentage are we looking at, at the end of this year?

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

So I mean, the endeavor will definitely due to kind of inch closer to 50%.

Moez Chandani — Centrum Broking — Analyst

Okay. Sure. So around 50%.

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

That’s correct.

Moez Chandani — Centrum Broking — Analyst

Okay. All right, great. Thank you so much.

Operator

Thank you. [Operator Instructions] The next question is from the line of Amit Chandra from HDFC Securities. Please go ahead.

Amit Chandra — HDFC Securities — Analyst

Yeah. Hi, sir, and thanks for the opportunity. Sir, my question is on the partnerships that you have announced. So in terms of your two key partnerships and the network firewall partnership that we have announced, so what is the timeline in terms of revenue that we can expect? And what is the revenue potential from these partnership and deals? And also, in terms of the acquisitions that we have done, if you can provide some more color in terms of the performance of these individual entities. So how they have been performing?

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

So I think — Amit, hi, Rajdip here. So revenue from this partnership, I think it will take about 10 weeks to deploy the entire firewall for the semicon operator. And we are looking forward to have this revenue to be part of our overall performance from April onwards.

Amit Chandra — HDFC Securities — Analyst

Okay. And the earlier announcement that we made regarding the Uganda Telecom and the firewall deal…

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

So Uganda is already live. And we’re already I think serving them now. So I think that is live.

Amit Chandra — HDFC Securities — Analyst

Okay, okay. And on the acquisition, sir, so if you can provide some color on how the individual acquisitions are doing?

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

Sure. Gautam?

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

Yeah. Hi, Amit. So I think good thing is, I think both Masivian and Mr. Messaging are doing really well. I mean, when we onboarded Mr. Messaging, it was at a run rate of $5.5 million — EUR5.5 million a month. I mean, that has already trended up to almost EUR7.2 million, EUR7.3 million. In fact, in December, they’ve even outperformed that. But December being kind of a seasonal month, we are I think fairly confident that I think that’s all — this is already tending at EUR7.2 million, EUR7.4 million a month.

And in terms of Masivian, I think we’ve done a few investments last year in terms of expanding the teams. And even from our product line expansion standpoint, we are looking at creating a new product out of that team in partnership with the Indian technology folks. So at this point in time, I think we see Masivian continues to kind of drive almost a 20% plus growth rate [Technical Issue] to also win a large $5 million deal, which is a multi-geography deal and that was use courtesy of our presence across multiple geographies. So that is on their revenue scale a significant contributor. And we are reasonably confident. I think Masivian I think this year also — I mean, in FY ’24 also, we’ll be able to kind of clock growth rates northwards of 20%.

Amit Chandra — HDFC Securities — Analyst

Okay. And in terms of the strategy — in terms of acquisition strategy, since you have been aggressive on the acquisition side, so how do we see in terms of deployment of the cash that we are having? So are we planning some more acquisitions in some strategic areas or we are planning to grow the business more than it from here on?

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

So Amit, let me just start this question. Like as I said, we are launching few products very soon. And I think this is in-house built. And probably in terms of acquisition, we are not looking out to acquire any large companies or invest heavily on that side. Right now, we’re focusing more on how to integrate and create upsell cross-sell opportunity between all the companies we acquired. And that is our focus for the next few quarters.

And I think we want to make sure all the integration and upsell cross-sell opportunity to be created well and which we have seen a very good like traction between all these companies where we started using each of other’s product fairly well. As I said, the mobile identity products which we are launching is a brainchild of Masivian. And we both team from Bangalore at the Route Lab and team from Colombia, worked together to build this product, which is a very unique product and probably a product for a fintech market to be launch in India very soon.

Amit Chandra — HDFC Securities — Analyst

Okay. Sir, I have one last question. So we have seen that there has been multiple price hikes on the ILD side, okay? So what is the thought process behind this massive price hike by the telcos? And is it an indication of the fall in volumes? So they are increasing the prices to offset the fall in volumes that we are seeing?

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

So Amit, I think if you see global market, like I think that’s a trend going on all across the globe now. Any international OTT brands remitting all across the globe are paying higher price and that is a very common trend. And India is still a very low price if you say INR0.04 as compared to INR0.12 or INR0.13 in Bangladesh or Pakistan. But I think, yes, it’s a completely prerogative of operator to decide. For us, it is a pass-through. And operators really need to be like think logically before they increase pricing because if they really want to increase price, they may reduce some traffic. But I don’t think operators are going to increase price in India for the next at least a few years, one year for sure, because we have seen certain degrowth in traffic, which somehow we are a little bit careful. This is my understanding. I might be wrong also.

But on the domestic side, there are some discussions people are talking about to increase pricing. I have no idea. We have not got any update from operators as we speak. And probably, I don’t think because enterprises are definitely spending a lot of money on this kind of communication and probably increasing price at this point of time won’t work for operators. So I don’t think there’s any price going to happen in the next one year, for sure. But I might be wrong also. Even if it happens, for me, it is just a pass-through.

Amit Chandra — HDFC Securities — Analyst

Okay, sir. Thank you, and all the best.

Operator

Thank you. The next question is from the line of Ashish Chopra from Goldman Sachs Asset Management. Please go ahead.

Ashish Chopra — Goldman Sachs Asset Management — Analyst

Yeah, hi. Thanks for the opportunity. I hope I’m audible?

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

Yeah, Ashish.

Ashish Chopra — Goldman Sachs Asset Management — Analyst

Yeah, thanks. My first question was actually on the cost side. If you could just explain the costs below the purchase of SMS. I think the employee cost this quarter went up from INR39 crores to INR47 crores, while there hasn’t been any material change in the total number of employees. And even the other operating expenses, which even after excluding that provision of INR6 crores, I think that’s gone up from INR38 crores, INR39 crores to the similar number of INR46 crores, INR47 crores as well. If you could just clarify the jump in these two expenses?

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

Sure, sure. So Ashish, essentially, the employee benefit costs, we need to kind of — so I think in this financial release, the employee benefit — ESOP expenses that’s been clogged with the employee benefit expense, and hence, that cost is seemingly higher, earlier it was a separate line item. Hope that clarifies or you have something specific on that?

Ashish Chopra — Goldman Sachs Asset Management — Analyst

Gautam, I was actually talking about the employee expenses, excluding the ESOP charges, which would have been INR38 crores, INR39 crores last quarter and is INR47 crores this quarter.

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

One second, one second. Ashish, just one second.

Ashish Chopra — Goldman Sachs Asset Management — Analyst

Sure.

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

If you adjust the ESOP cost, right, I think the ESOP cost has not been adjusted. So if you adjust the ESOP cost for both the periods, the cost has actually reduced.

Amit Chandra — HDFC Securities — Analyst

Okay. Could you just share the employee expenses excluding the ESOP…

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

Yeah, we can share that with you. And your second query was on other expenses. So other expenses, if you adjust for the bad debts, I mean, with respect to Mr. Messaging, there was increase in the data center cost because of the increase of our global scale of operations, plus there were some employees where there was a commission structure. So there was increase in commission with respect to the performance of some of the employees.

Ashish Chopra — Goldman Sachs Asset Management — Analyst

Okay, okay. So would the second element to be the non-recurring one among the two and the data center costs continue going forward. Would that be the right way to think about?

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

Yeah, data center costs will continue going forward and the other one will kind of be a function of performance.

Ashish Chopra — Goldman Sachs Asset Management — Analyst

Okay, okay. Got it. Yeah. And the other question I had was, so I think in terms of seasonality, how should we think about transitioning from 3Q to 4Q? We’ve seen last time around when there was a sharp drop and that was on the back of maybe most of your businesses, especially the overseas ones having a fairly strong finish to the calendar year. But is there a certain kind of a defensible level of volumes below which you don’t expect it to decline in the fourth quarter, particularly also considering the fact that the seasonality in the domestic side at least has been a little bit more muted this time around since some part of it already came in 2Q? Hello?

Operator

Yes, sir, we can hear you. Management members?

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

Yeah, yeah. Ashish, if I can understand your query correctly, are you kind of looking at what is the Q4 expected sort of a run rate?

Ashish Chopra — Goldman Sachs Asset Management — Analyst

Yeah. Just in terms of — I mean, if I were to compare the 4Q for this year versus the last year, I wanted to understand should the seasonality be lesser of a factor considering that we’ve already not seen as strong a seasonality in December quarter this time around in terms of volume growth as you mentioned that some part of it has come in 2Q itself?

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

That’s correct. But having said that, so Q4 will be slightly weaker than Q3. And that has actually been the trend historically as well. I mean, if you adjust for — I mean, if you look at the Q4 had one month of I think Mr. Messaging’s revenue. If you adjust for that, it was slightly muted to Q3. So it will continue to be a little muted. And there was a specific operator deal that we had for the quarter, for the last quarter, which was about $5 million, $7 million. And that contract is due for kind of bidding this month, this quarter rather. So adjusted for that, I mean, it will be slightly muted. But I mean, from a full year perspective, the guidance will be northwards of 70% growth.

Ashish Chopra — Goldman Sachs Asset Management — Analyst

Okay, okay. Understood. That’s helpful. And Gautam, in terms of just the attrition numbers, so I think mentioned around 61 employees leaving and 65 joining the organization this quarter, right? So which I guess on your base is almost like 8.5%, 9% for the quarter. On an annualized basis, more like 35%, 36%. Is that the normal — I mean, is that path for the course with respect to the business pr is that something that is much higher than your comfort levels? Where should we think the comfort levels on attrition to be for your company?

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

No. So it is a mix of two things. I think it is definitely I think midsize, I think IT companies, they are also witnessing same kind of attrition trajectory. But in our case, there was certain — some other aspects. So Masivian, I mean, we were kind of looking at building a lot of these products, right, so they have taken it to a level at the end. At a point in time, we realize that we have to bring that and globalize it from a global launch of that product. So that’s where we had some amount of attrition at Masivian. And then we were able to kind of add it or pad it into our Bangalore, the center of excellence, right?

So the intent was to kind of create a team and create kind of a working technology relationship between Masivian and the India team so that we could kind of look at launching the product at a global scale. So a lot of Masivian’s product stack is largely in Spanish. And the intent is — I mean, when we’re looking at launching it across various markets, the intent is to kind of globalize it and have it more in terms of English. So that’s where we’ve kind of done a little bit of chop and change between the two entities. So that’s also a large part of this increase and then we could add things here.

Ashish Chopra — Goldman Sachs Asset Management — Analyst

Understood. Thanks. And one last book-keeping one for me. Could you share the operating cash flow number for the third quarter?

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

One second. For the nine months, it’s about INR6 crores positive.

Ashish Chopra — Goldman Sachs Asset Management — Analyst

Sorry, INR6 crores?

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

Yes.

Ashish Chopra — Goldman Sachs Asset Management — Analyst

Okay, okay. And you mentioned that this may soften up in the fourth quarter given the firewall products deals?

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

That’s correct.

Ashish Chopra — Goldman Sachs Asset Management — Analyst

Understood. Got it. Thanks so much for taking my questions, and all the best.

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

Thank you, Ashish.

Operator

Thank you. The next question is from the line of Mohan Kumar, Individual Investor. Please go ahead.

Mohan Kumar — Individual Investor — Analyst

Hi, team. Congrats on a great set of numbers. Most of my questions have been answered, but if I may ask something a little out of the box. So when you’re speaking to other funds around you, what is the biggest pushback you’re getting with respect to what investors want to see or the funds want to see with respect to company’ performance? Because, if I look at the last few quarters, the company has consistently performed fairly well when it comes to whether it’s top-line or bottom line, but the stock has not done that great. So I’m just trying to understand if there is something that you’re hearing from investors that probably is facing a few flags here or there?

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

I think there’s two way to answer. I think Gautam, let me answer and then probably you can answer. So honestly, we had a great support from our investors. And I think we are getting support in terms of their inputs on different products which we launch, we always discuss with them also. But I think how the market is behaving is something Gautam can answer your question. But definitely, we want to focus more on developing new products and try — and we have the capability and the team now. And our focus is definitely going to be build something in-house and for a global market, which is exactly what we are building right now.

And I think most of the investors, they always try to see new things to build and I think which we are doing. And definitely, they want to grow, they want to see the growth from where we are going to — which markets we are going to focus on and how we are going to define a strategy for those markets and what is our growth plan for this market. And I think these are the few things which we keep on talking with them. And I think we’re getting great support from all our investor as of now.

Gautam, you can just add to that.

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

Yeah, yeah. Sure, and thanks for asking this query. I mean, honestly speaking, we’ve been really, really happy with the way we have been performing over the last not only the last three quarters, but I mean last — I mean, since we IPO-ed and even before IPO, we were doing really exceptionally well and we continue to take this path.

Honestly, I mean, it’s more than micro. It’s got more to do with macro. I think there are challenges in terms of what’s happening globally in terms of the tech space. There are some funds where there are write-downs because of their tech exposure and other things. So that’s leading to some amount of realignment in terms of their portfolio. So some of these things have definitely impacted in terms of a little bit of supply and other things. But hopefully with things kind of moving from a macro standpoint towards normalcy, things would start to kind of — and we should definitely start to get rewarded in terms of the way we have been performing.

Our aspiration is to kind of reach $1 billion revenue. And I think we are working in that path at this point in time. And from our run rate perspective also I think we are now close to — I mean, we should be very close to $0.5 billion run rate by next year. And we’re also kind of now contemplating few other strategic moves, which would help us accelerate our journey to $1 billion revenue. And with fingers crossed, hopefully, the Street should start rewarding our performance.

Operator

Do you have any further questions? We’ll move to the next question, which is from the line of Swapnil Potdukhe from JM Financial Limited. Please go ahead.

Swapnil Potdukhe — JM Financial Limited — Analyst

Yeah. Thanks for the opportunity. So my question is regarding the new product sales. So if I see your numbers for the last three quarters, the growth rentals have come down significantly, if I were to compare that with the last year. Now the question is like despite this low base of revenue, why haven’t we been able to increase that growth run rate? I mean, we are at 20% — 19% if I see, previous quarter we were 8%. Is there a possibility that we can see some improvement going ahead here?

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

Definitely, yes, Swapnil. We are — I think we do have an internal target for our sales people to focus more on products in the global market. We are onboarding customers on [Indecipherable] not only in India, in Indonesia, in Middle East and in Africa also. So in the coming quarters, we will see the impact of growth in all the new products, including some of the products which we are building.

Swapnil Potdukhe — JM Financial Limited — Analyst

Can we expect that to go beyond this 15%, 20% that we’re growing right now?

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

Definitely yes.

Gautam Badalia — Group Chief Strategy Officer & Chief Investor Relations Officer

In fact, just to add to Rajdip’s point, the modus operandi for us going forward is to create strategic business units. And I mean like the U.K. entity that we have formalized, the intent will be for various other such new products to create dedicated teams to drive the core business. We believe I think in days to come, the growth rates will only accelerate. At the beginning of last year, I think we had guided almost doubling our revenue from $10 million of revenue. I think we are on track to achieve it. And now with this email, the platform upgrade, I think the email trajectory also should start to kind of show good traction.

Swapnil Potdukhe — JM Financial Limited — Analyst

Okay. And the second question is with the business for gross margins. Now given the new deal wins and expansion in some of the geographies, increase in ILD messaging, how should we start looking at your gross margins in the near-term?

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

So I said, see, I keep on telling you on my previous call also that we are definitely looking to add new product revenue to our portfolio. And in coming days, we have the aspiration to increase our GP from 25% to 30% and we are working towards that. In coming quarters, we will definitely try to achieve this number as we are in very early stage. And so I’d say the only kind of adoption of this new channel of communication adoption ratio is very slow. And the way it is growing, I think we are onboarding multiple customers every single quarter on different products and we do see a lot of traction happening on it. And we do have internal targets for ourselves that to how to enter our GP in coming quarters down the line and we are working towards that. And we will definitely see increase in GP in coming quarters.

Swapnil Potdukhe — JM Financial Limited — Analyst

Will it be possible to quantify in some sense?

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

You need to also understand, Swapnil, we are working in different geographies, right? We work in the Africa geography which is definitely very low in terms of GP. But if you go in Latin America, that is more than 35% GP. We work in certain markets where GP is almost, say, 14%, 15%. So we are not just based on one country and one set of customer where you can actually give a guidance for a GP. What we are trying to say out here is that we are definitely working on the product mix, which will increase our GP coming quarters down the line.

Swapnil Potdukhe — JM Financial Limited — Analyst

Okay, sure. And just one last follow-up question around how should we think about the organic growth trends? If I were to exclude your firewall deals, there have been some of the sectors or competitors who have started calling out our recessionary pressures. So in that sense, would we be able to continue to grow at around 30% that we have been growing right now or we should start looking at some tapering off there?

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

Swapnil, if you see our growth in the last five years, like we always grow by 30% and we will try to grow in that rate. And again, the question is the product mix or other things. And I think organically if you see there is a growth also, which Gautam has already mentioned. And we are still doing some of the integration with some of the large Indian banks, which is happening as we speak. Probably that traffic may come this quarter or next quarter, probably we’ll see the growth in those as well.

Swapnil Potdukhe — JM Financial Limited — Analyst

Okay, Rajdip. Thanks a lot for answering my questions.

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

Thank you.

Operator

Thank you. That was the last question for today. I now hand the conference over to Mr. Rajdipkumar Gupta for closing comments.

Rajdipkumar Gupta — Managing Director & Group Chief Executive Officer

Just wanted to say thank you everyone. Thanks for your time, and have a very good evening. Take care. Thank you.

Operator

[Operator Closing Remarks]