Saksoft Limited (NSE: SAKSOFT) Q4 2025 Earnings Call dated May. 27, 2025
Corporate Participants:
Vinay Menon — Research Analyst
Avantika Krishna — Chief Sales Officer and Business Head
Niraj Kumar Ganeriwal — Chief Financial Officer, Chief Operating Officer
Analysts:
Vikas Shrivastav — Analyst
Unidentified Participant
Amit Jain — Analyst
Ritika Kundra — Analyst
Anjali — Analyst
Harris — Individual Investor
Miloni Mehta — Analyst
Presentation:
Operator
Ladies and gentlemen, welcome to the Q4 FY ’25 Earnings Conference Call hosted by Munaj Network Capital Limited. , all participant lines will be in listen-only mode and there will be an opportunity for you to ask questions at the end of today’s presentation. Should you need assistant during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Vinay Menin from Monaj Network Capital Limited. Thank you, and over to you, sir.
Vinay Menon — Research Analyst
Good afternoon, everyone. On behalf of Monak Capital, it’s my pleasure to host the senior management of. We have with us Avantika Krishna, Chief Sales Officer of the company and Mr Niraj Kumar, CFO and CEO of the company. MR. Krishna will not be able to join due to some personal emergency. Now I will hand over the call to Ms Avantika for her opening remarks. Thank you
Avantika Krishna — Chief Sales Officer and Business Head
Thank you, Vinay. Hello, and good afternoon, everyone. Welcome to our earnings call to discuss the performance of the 4th-quarter and financial year 2025. Let me start-off by briefing you on the key business highlights of the 4th-quarter and full-year ended 2024-’25, after which my colleague Niraj, COO and CFO, will brief you on the financials.
As you all might be aware, the IT sector has been facing several headwinds globally. Despite these, I’m pleased to say that we managed to report a good performance during the period under review.
During financial year ’25, we made significant strides by making strategic investments in-building AI frameworks and accelerators that help our clients accelerate innovation, enhance engineering productivity and confidently scale their AI initiatives.
Our AI accelerators, including, Quality 360, Solid and Saccelerate, these accelerators enable transformation for our customers by providing strong foundation for automation, agility and intelligent operations across the software product engineering life-cycle., we accelerated our go-to-market initiatives by onboarding high-caliber sales talent and expanding our client partner network.
These efforts have been aimed at deepening customer relationships, improving market coverage and driving sustainable growth. We’re beginning to see early traction from these initiatives. A notable highlight of the year was the addition of a new client in the banking and financial services vertical, contributing an annual contract value of approximately USD0.5 million.
This win not only validates our focused approach to high-growth verticals, but also demonstrates the growing relevance of our digital solutions. On the financial front, the Board has recommended a final dividend of INR0.40 per share, 40% of face value of INR1, bringing the total dividend for financial year ’25 to INR0.80 per share, 80% of face value, in-line with our commitment to delivering shareholder value.
Now I would request my colleague Niraj to give you the financial highlights for the quarter under review. Thank you.
Niraj Kumar Ganeriwal — Chief Financial Officer, Chief Operating Officer
Thank you, Avantika, and thank you everyone for taking the time and joining our earnings call today to discuss the results of the 4th-quarter of the financial year 2025 under review. For the 4th-quarter of the financial year 2025, revenues were reported at approximately INR240 crores, reflecting a robust year-on-year growth of 23.1 percentage.
The operating EBITDA for the quarter stood at INR36 crores, which is 9.3% increase year-on-year with the EBITDA margins at 15.17 percentage. The net profit for the quarter was around INR30 crores, which grew 29.4% year-on-year and 11.1% quarter-on-quarter with the profit-after-tax margins being at 12.52 percentage.
For the full financial year 2025, the revenues were reported at INR883 crores. This represents a growth of around 15.9% year-on-year. The operating EBITDA for the year stood at INR146 crores, which grew by 7% year-on-year and the EBITDA margins for the year were at 16.56 percentage.
The net profit was at around INR109 crores, which grew year-on-year by 13.1 percentage with the PAT margins being at 12.32 percentage. Now coming to revenue split by geography for the current year. The Americas contributed to 42% of our total revenues, whereas Europe contributed 23% and the remaining 35% came from Asia-Pacific and other regions.
The on-site revenue continues to be at 45% and offshore at 55% of our total revenues. The revenue split across verticals for the financial year 2025 are as follows: BFS contributed to about 30% of our revenues, emerging verticals around 46%, logistics, 13% and commerce contributed to about 11%. Coming to some of our customer metrics, has around 15 customers of USD1 million-plus revenues. The total employee count at the end-of-the quarter stood at 2,618, out of which 2,373 were technical with the utilization level of the employees excluding trainees being at 85% for the financial year 2025.
That concludes the updates of the quarter and we can now open the floor for the Q&A session. Thank you very much.
Questions and Answers:
Operator
We will now begin the question-and-answer session. Anyone who wishes to ask a question 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 handset while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. First question is from the line of Vinay Menon from Manaj Networth Capital Limited. Please go-ahead.
Vinay Menon
Hi, sir. Congratulations on a very good set of numbers. So just one thing, sir, we have now mentioned this emerging vertical in this quarter. So — and you changed the segmental data a bit.
So can you give me some clarity because we should not mention this other vertical — in the earlier quarters. So what has changed ourselves?
Niraj Kumar Ganeriwal
Hi, Vinay nothing has really changed with regards to the segments. The focus is still the same. We’ve just renamed them. And so emerging verticals originally was high-tech media and telecommunications or high-tech media, utility,.
Vinay Menon
Okay. That is helpful. And in terms of growth guidance, any guidance for ’26 because you know we are seeing some release from tariff issues and also any kind of guidance you can give for ’26?
Niraj Kumar Ganeriwal
So Vinay, it’s very difficult to give a guidance, but obviously, we have targets and the objective for the current year for the management team is at least to do a growth which we have done in the previous year and might be try and do better. But at a high-level, we are looking at a range of INR1,000 crores to INR1,100 crores for the financial year ’26.
Vinay Menon
Okay. Okay. That really helps, sir. And in terms of verticals, what verticals will be like lead business like what could be the main drivers on vertical side?.
Niraj Kumar Ganeriwal
In terms of verticals, I think one of the focus areas, whilst did mention that you know, the emerging verticals is more of a rebranding for high-tech media and utilities. I think that is a vertical where we will see a lot of traction, growth and progress. That is also primarily because of the recent investments which we have done.
If you note the acquisitions which we have done on the sales force and on the ServiceNow area, which is around intelligent products. We do believe that a lot of work-in these areas will be on the new-age verticals and that’s a vertical where we might see some significant growth in the coming year. Duly supported by BFS, but I think BFS and emerging verticals should see better growth.
Vinay Menon
Okay. Thank you. Thank you for that clarity, sir.
Operator
A reminder to all participants, you may press star and one to ask questions. Next question is from the line of Vikash Rivasta from RBC Financial . Please go-ahead.
Vikas Shrivastav
Yes. Yes, good afternoon. You know what I’m hearing on the call, first question is this that we are still growing in the range of 16%. A couple of years back, we had made a mission statement of $500 million by 31st March 2030, if I remember, which would require us to compound at about 26 27 20 somewhere in that range percent CAGR per year to get there?
Niraj Kumar Ganeriwal
We’ve done about $100 million this year the last financial year. So what are we looking at heavy, is that vision, is that target, is that goal sell or is it something which we are not reaffirming now And even with your current target of INR1,000 crore to INR1,100 crores, which you are talking about.
But we are still looking at 10% to 15% growth per year, which is nowhere close to what our vision statement was, if I may Call-IT a target or a vision statement. And the other thing was that with your — that was the first question. Second question was that your stock options which are allotted to your employees for the last two years.
So most of it would still be probably a little underwater. How do you find stock options and retention of senior management you know as an instrument of compensation paying out when at least optically right now the stock options are not accretive to employee compensation for the last two years. So Vikash, I’ll try and-answer the first question and then i will answer to your second.
The first question on your vision statement of INR500 million by 2030. You know, we are — as a company, we are confident that we are still going to make that decision that we promised. Yes, we have — as you know that there are headwinds in the US and that’s why the guidance that Niraj has given is basis that you know, as we don’t know what will happen in the US, Trump keeps changing his mind every day.
So we’re all uncertain. But I think the last one year, we have really focused on our positioning. And so we have invested a lot of time in our AI accelerators like I mentioned, but we’ve also invested a lot on the platform side and that is what we’re seeing over the next two years will definitely build our pipeline. So we are — yes, we are being a bit conservative on the guidance, but that’s due to the headwinds that we’re seeing.
And — but I think from a confidence level, we’re seeing pipeline build. And as of now, no negative impact. Coming to your second part of the question because on the ESOP options, you rightly pointed out that you know most of them would be under the water. But I think that’s the nature of these — this compensation criteria.
The management team and the senior people are very, very committed. And you know, other than a couple of them, the key management team and number of them have been with the company for 10-plus years. So they have seen cycles and I think it’s only a temporary cycle. The team is committed and all of us are working towards that goal of USD500 million.
And everyone knows that as we move forward and we are inching closer to those targets, these options will give the return which they expect. So it is definitely not a deterrent. In fact, any new senior hire we look at, they are in fact more keen to get options because this is still considered one of the most rewarding mechanisms. Okay.
So if I may — if I may just repeat what you said. I’m sure that we are still in the next five financial years at an average of a CAGR of anywhere between 25% to 30% is not off the — it is not off the table. It’s still a distinct clear possibility or a goal which the management is aimed at.
That is one takeaway from me. And the second question was what are we talking about in terms of EBITDA margins, et-cetera? We’ve been investing in sales and platforms for a while now. We were — if I remember right and I could be wrong as it had said that we should be looking at about 18% in this competitive market.
Vikas Shrivastav
So are we still seeing that? Is there pressure on margins? Will the market become more competitive or do we need to pass-on more?
Niraj Kumar Ganeriwal
Those were the two questions which I had so the first one, yes, just to affirm what Avantika had said in your statement that, yes, we are still looking at the EUR500 million. The CAGR still is expected at, 25% 30%, CAGR being CAGR. So one year could be lower, other year could be higher.
But as a team, we are all still focusing on that number. It’s not a moving target and we are constantly looking at how we can achieve the EUR500 million. On the second point, EBITDA, yes, 18%. In fact, in the current year itself, you would have seen it’s slightly come down. We are closer to the 16.5 percentage.
Whilst we are growing and reinvesting, there will be a short-term drop. That’s mainly because of hiring of the salespeople, investment in accelerators, investment in the center of excellence capabilities, which we are building up. But those are maybe a year or year and a half phenomenon.
And once they start kicking-in results, it should go back to the 17% to 18%. But rightly said, for the current year, we were at around 16% plus and for the coming year, we could be only on a similar range, if not higher.
Vikas Shrivastav
Okay, if I may. Thank you. If I may follow-up with a few more questions. I did see — I did see in the investors a shareholder, there is a 2% shareholding by FBI. Is there something new in this corner or has it been carried forward from the 2% SBI shareholding has it been carried forward from previous years?
Niraj Kumar Ganeriwal
They have been there. So the FTIs have been in and out and their shareholding has been continuous. It may not be the same, it may be the — some of them would have come, some of them would have gone, but the shareholding of FTI, FII has been around this percentage or slightly higher in the last 24, 36 months.
Vikas Shrivastav
Got it. Got it. And in terms of — we — our sales team, we have done a lot of hiring in the last two years. And in terms of any attrition, have we lost people?
Niraj Kumar Ganeriwal
And that was one question and another question was on, are we in this — we’ve been done a lot of small acquisitions.
Vikas Shrivastav
Are we now talking about more acquisitions in the pipeline in the near-future or are we talking about organic growth? Is the emphasis more on organic growth now to meet our targets of turnover?
Niraj Kumar Ganeriwal
Yeah so on the sales side, we are constantly investing in the sales team and more importantly, sales team on-the-ground in the US. But we are turning around quite quickly. So if the performance is not good from these resources you know we take decisions fast and we place.
So our churn rate is good and you know we will act fast when we need to. In terms of acquisition, because you know, whilst we have done a good set of acquisitions, have acquired a lot of capability and the focus will be on the organic. But historically, we have seen that the growth has come both from organic and inorganic.
And if there is something which we come across as a good asset, we will be happy to acquire. But currently, the focus is more on the organic side, especially with the intelligent platforms, the Salesforce, the ServiceNow capabilities which we have acquired. I think that’s going to be one of the push factors in the current year for us.
Vikas Shrivastav
That’s good to hear. So one last question. In terms of all our acquisitions, are we completely been integrated into, everything is done and dusted as far as integration is concerned and whatever benefits from these acquisitions should be — should be now accruing now as a consolidated?
Niraj Kumar Ganeriwal
Of course, so we have a very clear plan for integration because it’s a, 30 60, 90 day plan. And by the 90 day, the teams are integrated, the sales team, delivery team, support team.
So I think whatever we have acquired is fully-integrated. In fact, the good thing is some of the growth which has come in this quarter is also as a result of the capability which these acquisitions have brought in, taking them to the existing set of customers. So it’s been a good integration, which we feel and it’s going-in the right direction.
So therefore, what you’re saying, we also have the synergies. The synergies are — yeah, let me just finish. The synergies of — are should show in-full now going-forward , not only the integration, but the synergies you are looking Absolutely. Absolutely,.
Vikas Shrivastav
Okay. Thank you very much.
Operator
A reminder to all participants, you may press star and one to ask questions. Next question is from the line of Rohit from PMS. Please go-ahead.
Unidentified Participant
Yeah, good afternoon. So I’m not just this question which was just asked previously on this your ambition to be $500 million so just want to sort of my question was on your aspiration to be a $0.5 billion sales company, top-line company by FY ’30. So given this is — and this is a very crowd space in terms of IT services. So what gives us that edge, what is the niche that we are sort of focusing on?
Niraj Kumar Ganeriwal
I’m sorry, I moved your company since maybe this question is very basic, but just wanted to get your perspective on what are the white spaces or whatever gaps or areas that you are going after where you see that this opportunity to scale-up 100 million to 50 million. Sure, Rohit. So as you put to the company I’ll give you a little bit of history.
You know we have traditionally been focusing on domain-specific technology solutions. And the domains that we focused on were a small handset of like one was banking and financial, the second is high-tech, media and utilities. The third is logistics and the fourth is commerce.
And the last, I would say five to six years, we were focusing on these four mainly and really building our solutions that are catered to these industries and specific. Very recently maybe the end of last year, we engaged a small consultancy firm and felt it was a need to transform in this very evolving industry that we’re in.
And AI being the front of everything, we felt it was important to also transform, otherwise we won’t be relevant tomorrow. So last year, we spent a lot of time, like I mentioned, we’ve spent a lot of time and investment in AI frameworks and also AI platforms. And we’ve now focused our capabilities on intelligent products and intelligent platforms.
So what we mean by intelligent products is helping customers in their entire product engineering life-cycle or software development life-cycle on right from building new products to enhancing existing products or even sustaining these products. And how can we leverage AI in all these three initiatives.
And the second area is intelligent platforms where we’ve chosen five platforms that we want to invest in and the acquisitions last year you added those two of those five and these five are including Salesforce, ServiceNow, Databricks, Snowflake and HCL and commerce.
And we’re just sort of helping customers you know, modernize, implement, customize, you know, help them sort of optimize in these platforms.
And so we see ourselves also competing with the larger players, Tier-1, Tier-2 players. But I think because of our size, we’re known to be flexible, our turnaround time is quick and our customers like us for quick turnaround time and our agility. So that’s how we’re creating a differentiation in the market.
Vikas Shrivastav
Right. Thank you, for that elaborate answer. And if I got that answer correctly with to the previous participant, you mentioned that a bulk of this international growth that you see — that you will probably do will be organic. Is that the right understanding?
Niraj Kumar Ganeriwal
Yes. So it will be a mix of organic and inorganic, but obviously organic has to be in the forefront. Right, right. And so today, if I see the verticals that you mentioned in terms of your revenue mix.
So in this course of this next four, five years, do you see this mix changing or do you think this mix will normally be the same and you have a lot of opportunities to go deeper into your existing clients or existing verticals I feel that we have a lot of room to grow in these four verticals.
So I don’t see us adding on at this point in time. I think high-tech is definitely a new area for us. We started working on it and focusing on it only last year. So the market is huge there and that’s why I don’t feel — we don’t feel that there is a need right now to add-on verticals.
Vikas Shrivastav
Sure, sure. Thank you, one, and all the best for you for the year. Thank you.
Operator
Next question is from the line of Amit Jain from Minaj Networks Capital Limited. Please go-ahead.
Amit Jain
Thank you. Congratulations on a good set of numbers. So actually I again continuing with the previous participants question regarding the strategy, the differentiators. So I just want to get more clarity on when we say intelligent products.
So does it mean that are we collaborating with these products like the company for manufacturing these products like products when we say intelligence products which are our clients in this case?
Niraj Kumar Ganeriwal
So when we say intelligent products, it is independent software vendors that we’re referring to that will be our customers. And these ISVs really name we call them is selling products to the market. So for example, a large ISV would be Salesforce or ServiceNow. Those would be enterprise ISVs.
So intelligent products are two ISVs in this space. Did I answer your question because the line was a little unclear. So I just want to ask that who are clients in this case, when we mentioned about intelligent products.
So, once more that recently one of the peer company has highlighted also one of their vendor in this case because of that, because of the AI has become a big disruptor and the contract value has drastically come down. So are we see that thread because as I said again there are lot of disruptors which are happening. So how are we preparing ourselves because that can hit us as well.
So how are we preparing for that. Yes, definitely AI is a distractor in the market, but we don’t see that situation where it’s impacting us. We feel that as more of an opportunity because we can actually go into a new customer where they have another vendor working for them and we can disrupt that space by offering them lower-cost or in terms of improved efficiencies over-time.
So we would — we’re taking it as an opportunity right now. And in terms of hiring, so it’s just a — if you can just highlight whether are we going to — okay, you highlighted that, yes, we are hiring good salespeople. But on the engineering side, engineer side, are we moving up the scale, maybe going for some hiring PhDs, some going to premier institutes, to get that domain expertise to move-up in the value chain.
So Amit, you know, we are hiring across the value chain and what is working well for us, especially on the engineering side and the AI side is a lot of work we are doing is building these frameworks in-house and we have a regular mechanism of training and upskilling our resources. So whilst we might need a handpicked serial — senior guys who might be required, but at the end-of-the day, it’s more training, learning and development and upskilling our resources, which will ultimately benefit us. Okay. Understood. And just lastly on the margin side, I can understand and appreciate that, yes, to — and we don’t mind if the operating margins have come down a bit. But is it a new normal going-forward, do we in our modeling, should we presume that this will be the new normal, maybe the 16% 17%. Maybe for a year or two, Amit, I would say that it would be a new normal because like I had said five years back when we were about 50 million and when we moved up to 100 million of revenues, we were about 12%, 13% of margins, which went up to 17% to 18%. So the costs do come in early, but they don’t stay along too long when the results start kicking. But I think for the next 12 to 18 months, it would be realistic to say that this is the new normal.
Amit Jain
Okay. Thanks. Thank you so much, and congratulations once again.
Operator
A reminder to all participants, you may press and one to ask questions. Next question is from the line of Rithika from SR Capital. Please go-ahead.
Ritika Kundra
Yeah. Hi, Sir, my first question is like any light on account mining strategy yes, we have — I think if you had a Canada last earnings call, we were very clear that we have now divided the sales team into account farmers and hunters. So no salesperson is doing both and that allows them to have a clear focus. So account mining, there’s definitely a lot of focus.
We have named strategic accounts and for each strategic account, we have a dedicated client partner close to the customer, so on-the-ground, meeting the customer on a daily basis also a clear strategic plan for them and how do we grow?
Niraj Kumar Ganeriwal
So yes, there is a — there is a clear account mining approach and focus is given on that front. And also our contribution has produced in top-five, 10 and 50..
In fact, the focus has been that customers who are in the lower range, we try and bring them up because there’s a part of account mining and strategy, we do categorize the customers into ABC category and those in the B category, which have a good potential to grow.
The objective is to try and see how we can increase the revenue-share from us and them, which is why you would have seen that we also had a new customer in the 0.5 million range this time. There is no loss in the existing set of customers. It’s just that we are focusing more on, I won’t Call-IT the tail, but on the next 10 set of customers whom we can mine and make it more better.
Ritika Kundra
Okay. Thank you. Just last question. What is the utilization for this quarter and what is the max that we can do?
Niraj Kumar Ganeriwal
So the utilization for the quarter is around 85%. I think you know, expecting anything beyond that would be definitely challenging. The reason we have also been at around 85% is the attrition levels have been low and we are investing in capability and the centers of excellence. That could be quarters because of some efficiency, we could see 100 150 basis-points higher.
But I think 85% to 86% is typically the high-end of the utilization for a company of our size.
Ritika Kundra
Okay. Thank you.
Operator
Next question is from the line of Anjali from Value Capital Limited. Please go-ahead.
Anjali
Hi, thank you for the opportunity. Sir, two questions. One is, could you highlight the reason for increase in DSO from FY ’24 to ’25 and how do you expect that moving ahead asking for the reason for increase in DSO from FY ’24 to FY ’25 and how to expect this going ahead,
Niraj Kumar Ganeriwal
I think we’ve increased almost from 67 days to 74 days. I think those are short-term blips. We really don’t think it will go beyond 75 to 80 days. It’s also because of the texture of revenues, if you see that the contribution from the Asia-Pacific and other regions is almost 35% plus.
So the payment terms in most of the APAC is anywhere between 60 to 90 days, whereas in the US geography, it is 30 to 60 days. So I think 75 to 80 is where the DSO will be there, but nothing of concern.
Anjali
Sure. Thank you for that. And just another one that I see that the debt has increased despite you know we have cash-in our balance sheet. So what is the specific reason for these same? And are we expecting to reduce the debt and when can we expect that?
Niraj Kumar Ganeriwal
Yeah. So the increase in debt is a short-term phenomenon because you rightly pointed out, there is adequate cash on the balance sheet. The only challenge is it is spread across between the overseas geographies and India.
This debt was taken for the acquisition, which we did in October of last year, but it is short-term and we strongly believe that in the next six to nine months, this should be repaid off. So it’s basically a short-term debt.
Anjali
Sure. That was helpful. Thank you so much, all the best.
Operator
Next question is from the line of Harris, an Individual Investor. Please go-ahead.
Harris
Yeah. Hello. Thank you for the opportunity. I’m just trying to understand about the company’s current operations. So we have always mentioned that we want to increase our exposure to US, but our contribution remains around 42%. So can we expect this to change going ahead?
Niraj Kumar Ganeriwal
Yes. Yes,, we can. We can definitely expect it to increase. Our focus is all US-centric. So all our efforts is towards the US market and that’s where we feel there’s great potential. So you will see an increase in that region.
Harris
Okay. Thank you. And I had one more question. So we were not able to add any large deals, any deals above $1 million, if I’m not wrong.
So going-forward in FY ’26, can we hope for a change in this like any larger deals in that aspect?
Niraj Kumar Ganeriwal
Yes. Yes, that’s our focus and that’s the plan. We — in most of our engagements, we start small. So if we started with a new customer or a new project or new space of service, we start small and we showcase our capability and then we have a larger deal. But now we’re trying to change our approach and trying to start with larger deals because our target market would have also increased.
So yes, that’s the plan. Pipeline should have more larger deals.
Harris
Okay. Okay. Thank you for the response and that answers my questions. Thank you.
Operator
A reminder to all participants, you may press star and want to ask questions. Next question is from the line of Miloni Mehta from Minaj Networth Capital. Please go-ahead.
Miloni Mehta
Yeah. Thank you for the opportunity. Can you throw some light on discretionary spending across verticals and how has been — how has it been on the macro-level? Also, I want to understand what percentage of business is dependent on discretionary spending?
Niraj Kumar Ganeriwal
Not much. We are not seeing any impact on the discretionary spend. You know right now conversations are happening, pipeline is building. So at this point in time, we’re quite positive.
Miloni Mehta
And overall, how has it been across the vertical? I mean, is there any slowdown in any of the verticals or how is the trend? Can you put some light on that?
Niraj Kumar Ganeriwal
No, no slowdown in all four verticals. You know, we have a healthy pipeline in all four, lot of conversations and you know the BFS and the emerging verticals, you know I don’t see any impact and the industry is strong and customers are speaking to us about many conversations in the
Miloni Mehta
Roadmap? Okay. And secondly, on financial point-of-view, I see that there is an increase in our third-party charges. So moving ahead, should we consider this as the run-rate or what has changed? Can you throw some light there?
Niraj Kumar Ganeriwal
Yeah, actually when you’re saying that you’re seeing a spike in the third-party charges, it’s actually regrouping from the other expenses line to the third-party charges because these are some of — we have partnered with, you know some of the tools and licenses like the HCL, the sales force, the business objects.
And then there is a sale of these which happened to the customers, these are predominantly in relation to third-party licenses, which are bought and sold. So the regrouping has been done in the right line today earlier, it used to be a very significant component. But since the amount was slightly higher this year, it has been regrouped.
And like you rightly said, it would be more appropriate to treat this as the basis for your forecasting going-forward.
Miloni Mehta
Okay. Thank you. I just have one more question from the cash-flow point-of-view, I see that we have sold some INR17.5 crore of investment. So what is this exactly?
Niraj Kumar Ganeriwal
We have not sold investments. What has happened is at a group level, if you’ve been following, we have merged three of our subsidiaries, Dream of Wed 360 Logica and Terra First. These subsidiaries which were acquired way back-in 2014 and ’16, they have been merged with Limited.
Now whatever liquid funds were there, pre-merger, we had to liquidate it as a part of the process so that the transfer between the companies happens easily. So it’s just the liquid investments which were sitting in some mutual funds were liquidated and have been reinvested.
They are not any third-party investments as such.
Operator
Okay. Thank you. Sure. Thank you. A reminder to all participants you may press star and one to ask questions. A reminder to all participants you may press star and one to ask questions as there are no further questions from the participants, I now hand the conference over to management for closing comments.
Vinay Menon
We thank everyone for taking our time to participate in this call and for their interest in. I hope we’ve been able to answer your queries. In case of any other questions, please reach-out to us or our Investor Relations, Balgram Advisors. Thank you for joining us
Operator
On behalf of Minaj Networth Capital Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines