SAGILITY LIMITED analyst Q&A

Thank you. Participants who wish to ask questions, kindly click the raise hand icon at the bottom centre of your screen. We will wait for the questions to assemble. I repeat, participants who wish to ask a question are requested to click the raise hand icon at the bottom centre of your screen. We take the first question from the line of Santhosh Balan.

Yeah. Congratulations for the good set of number. I just want to know, will there be any impact due to the AI in the future revenue?

Yeah. So we discussed a lot about AI and its impact on the Investor Day, right? So the broad answer to your question is, yes. AI, we believe AI is something that's going to generate a lot of efficiency for our clients. Efficiency in the sense of increased productivity, lowering costs both on their administrative functions, and also helping improve member and provider experience. So while the productivity gains will reduce some part of our revenues, we believe that AI will also help us gain m ore market share as we look to implementing AI as part of our overall transformation of our client operations and take accountability for business outcomes. So that's broadly our position on AI. As we said, we've grown at 15% in constant currency organically and we still believe that we can continue to grow in double-digits.

How far we have adapted to this AI in our company organisation?

Yeah. We've discussed that in the previous quarters. We've invested heavily in tech and AI. There are a number of use cases that we've piloted. We are working with several clients on some of these initiatives. But yes, we have implemented a number of use cases in various parts of healthcare operations. Thank you. Page | 9

Okay. Thank you.

Thank you. We take the next question from the line of Rohit Thorat from Axis Capital. Rohit, your line has been unmuted.

Yeah, hi. Thank you for the opportunity, and congratulations on a good set of numbers. My first question is regarding capital allocation policy. You have mentioned that you plan to extinguish the debt by end of FY '27. You have also increased the cash and cash equivalents on your balance sheet by a significant amount at the end of FY '26 versus at the end of FY '25. Are there any plans to increase dividend payments in FY '27, or payout would remain in the same range as of now?

So let me answer the question and MR can add to that. That's a good question, right? So the debt repayment is something that we had even previously spoken about. And we plan to repay whatever is left in the debt in FY '27. So that's one outflow. Second is, we want to keep some funds for M&A activities. As we've said in the past, we are constantly looking for opportunities that will help improve our capabilities, both on the technology and transformational side, as well as give us access to m ore clients. So any such opportunities that are out there, we want to take advantage of that opportunity and we want to keep some funds for our M&A. Beyond that, yes, as we will look at the dividend going forward and though there's no firm commitment at this point in time, we'll take a look at what can be provided in the form of dividends.

Okay. And on the M&A side, are you looking at acquisitions to strengthen your provider business or you would also look for any potential acquisition in payer segment as well if they help you expand your presence further among mid-market clients?

Yes.

Like, what would be the priority?

See we are looking at acquisitions on both payers and providers, right? So obviously there are a number of things we look at before deciding if a candidate is the right one for us. At this point in time, I mean, we've discussed in the past the areas that we focus on both in payers and providers. So anything that can give us a deeper domain differentiation in any of those areas or anything that can give us a technology capability in those practice areas are the acquisitions that we are looking at. So that's from a capability point of view. Secondly, any something like a BroadPath which gives us access to a large set of clients is another kind of acquisition that we would be interested in. So those are Page | 10 the two broad types of acquisitions we'll do. But we look for those kinds of acquisitions both in the payer and the provider sets.

Yeah. Thank you. Thank you for answering my questions.

Thank you. Before we move to the next participant, we would request interested participants to kindly raise their questions by clicking on the raise hand icon at the bottom centre of your screen. We take the next question from the line of Baidik Sarkar from Unifi Capital. Baidik, your line has been unmuted. You may speak.

Ramesh, hi, good evening, and congrats on a fantastic year of execution overall. My wishes to you and the entire team. Couple of questions. We make note of the Q4 ACV number that you shared with us, but could you help us with the cumulative ACV number also that you're sitting with at the end of the year? I'm given to understand that a significant part of your book that runs on an ARR basis, right? I mean, there's an annuity -like component built into that. So if you could just help us cull out what that number is looking at. And that multiplied into the pricing hike that you guys just talked about, what does it set us up for a base case revenue growth for FY '27? This is without considering fresh organic opportunities that'll open up for the re st of the year. So if you could just help me with that part of the math, please.

Yeah. So Baidik, nice to hear from you. Good question, right. So the math isn't as simple as just adding up the ACVs. But to answer that question, if you go back, we've reported ACV wins in each of the quarters, roughly in similar ranges in the 30s, right? So if you add them all up, it'll probably add to somewhere around $130 odd million. So these are ACVs, potential ACVs of the deals that we've closed, both with existing and new clients. Obviously, the timing of revenue generation of those deals will vary. So one is the ramp cycles that some of those deals go through. So the initial months of revenue may be different from the steady state ACV values that we quote. And secondly, also, the part of the ACV would have been realised in FY '26 itself. So the incremental revenues in FY '27 is over and above what has already been registered in FY '26. And the rest of the revenues have to come from pipeline that gets convert ed in the first few quarters of FY '27. So it's that. So all of that is cumulative additions. To that, we'll have to also factor in any volume adjustments, right. Volumes in existing books of businesses could grow, could reduce depending on membership changes and other changes that are happening. Then there are other kinds of revenue reductions that we've spoken about, AI and automation related reductions that we've spoken about in the past. Then there's the geographic mix. If the same part of work moves from a higher revenue geography to a lower revenue geography, there is a reduction in revenue. So, all of Page | 11 this math has to add up to the final revenues that we kind of guide for FY '27. Does that make sense?

Yeah, no, I obviously understand the qualitative aspect of it, Ramesh. If you could just slice it by just one factor, right? For instance, the $814 that we've reported this year in USD. What's the annuity component of that? A, there is one annuity component. Secondly, of the $120 million that we won in ACVs, obviously we've delivered a lot of that in '26 itself. So I'm just trying to understand that, what's the basic run rate without organic accretion in ‘27? I mean, in other words, I could just ask you know, what your guidance for '27 is, which I eventually will, but I'm just trying to understand what the base has already prepared us for. And I mean, on top of that, I mean, that was my next question. On top of that, what does the pipeline look like? So I leave it to you, Ramesh, whichever you want to answer.

Yeah. Look, the $814 million, there is a steady state component and there is a seasonal component, right? Like we said, about 6% of our revenues were seasonal. And those seasonal components will reoccur in FY '27 as well, right? That's one way of to split it. If I were to simplify your overall question and if you ask me, what is it that is locked going into FY '27, I mean, at least look there are always surprises in terms of volumes. So I can't say with certainty what it is. But typically when we give a guidance about, I would say, I mean if I were to hazard a guess, about 7% to 8% of growth will already be factored in bas is the previous trends. And the rest of the growth has to come during the year.

Got it. Which then reminds me with the last part of the question, what's the qualitative, I mean sentiment you're witnessing in conversations today in terms of how large your bid pipeline is? If you could just give us a sense of, how that's moved over the last couple of quarters. What kind of growth rates are you building in just from conversations that you're having today?

Yeah. Typically, look we've been reporting only on the deal wins, right? But if you look at the pipeline, roughly from a TCV perspective, we'll have a pipeline of close to ₹570 million to ₹575 million worth of pipeline, right? So these are all proposals that we've submitted to clients. Qualitatively, if you look at, if you were to ask me on the quality of conversations, we are now, like I said getting into more managed service deal kind of conversations in which the timing of the deals could, like I said could be a little unpredictable because these are larger conversations. These are more transformative conversations where you are committing to cost takeout over a number of years. And also expanding the scope of work by including both upstream, downstream processes, right. So the discussions take longer time. But given the cost pressures that most of our clients are under, there's a lot more interest in engaging in those Page | 12 conversations. So, we are very bullish on the kind of conversations we are having, except that some of these conversations could take longer than a traditional RFP- based, effort-based deal.

Right. Got it. Last question, Ramesh. I mean, given the industry itself is growing at 7%, 8% and we're growing double that rate, and of course there's the lever of pricing and our own tech initiatives. Would a number closer than, I mean less than last year's, but higher than par, which is about 17% to 18% in dollar growth rate be a fair assumption for the coming year?

No, my guidance, Baidik was low double-digits, right? I mean, at this point in time, we are giving a number that we believe we can definitely meet. And every quarter when we do the earnings call, we will kind of guide you if we see an upswing to those numbers.

Sure. And on the margins, I mean, the FX was a tailwind, but assuming none of that comes through in FY '27, 25% is a defendable number?

Yeah, 24% to 25% is what we are guiding. If FX being the way it is, we believe we can come closer to the upper end of that range.

Baidik, would request you to rejoin the queue as we have some participant questions.

Fine, thanks.

Thanks, Baidik.

We take the next question from the line of Rishi Jhunjhunwala from IIFL Capital. Rishi, your line is unmuted.

Yeah, thanks for the opportunity. Couple of questions from my side. One on margins. Just wanted to understand, firstly, did we mention initially there was a change in the wage hike quarter and it played out in this quarter, and as a result, the margins would have been higher? What will that number be? And secondly, just wanted to understand, given that we are ending the year at 25.3 %, we are looking at, if we were to assume that the currency remains at current levels, we are looking at a lmost 7%, 8% depreciation. And still we are talking about margins not expanding beyond last year. So what are the headwinds and tailwinds to the margin assumptions that we are looking for FY '27?

MR, do you want to take that?

Yeah, sorry. Yeah. One second. Page | 13

So let me give you a high -level view. The hike cycle, I think we've discussed this in the past. I don't know whether we officially gave you the impact of that. As you know, when we started as Sagility India, our fiscal matched the calendar year. It was Jan through December. But when we became a public company, we changed the fiscal to April through March. So the last hike cycle was effective Jan 1, 2025. But we didn't do an increment on Jan 1, 2026. We're going to make it effective April 1, 2026. To overcome those three months, where we effectively didn't give a hike, this is the one-time bonus that MR was talking about. That's the one-time call-out that he's making.

Sorry and the question on full-year FY '27?

Yeah. FY '27, Rishi, that's a good question, right? There are a couple of things. One, obviously is, the Forex depreciation, the amount of depreciation is an unknown. But the fact that rupee depreciation is key for at least compensating for part of the wage increases is a known phenomenon, right? So the hike that we'll give effective April 1, a part of that has to be absorbed by any currency depreciation. Secondly, the geographic mix is also changing. So we are starting to see more revenues delivered from our U.S. geography, which also has an impact on the weighted average margin, right? So those are the two big things. And beyond that, any sort of price differences, price reductions and so on will also have an impact. The positives are we continue to try and generate efficiency in our operations. The more technology we deploy, we try and make sure that we compensate for any cost commitments or cost reductions or price reductions that we give clients. So that's one factor. Secondly, yes, if the exchange depreciates by more than what we need to compensate for hikes and so on, it'll improve our margin. So it's a sum total of all those functions. Given where we are today and taking into account the mix and all of these factors, we think we will be in the 24% to 25% range. But if things change, we will definitely update our guidance. MR, sorry, did you want to add to that?

No, I echo. I mean, basically, we will get an upside from Forex even at the current levels. And if it continues to sustain at these levels, yes, as we said, we'll hit somewhere near the top end of our guidance. And as Ramesh also pointed out, this Forex d epreciation is what also allows us to compensate our employees with higher wages, etc. So that's a lever for us to offset it in addition to the cost efficiencies that we generate internally. So yes, I mean, if it sustains, we are confident of hitting somewhere near the top end of our guidance.

Fair enough. And just a second question. I see we have created an ESOP pool for 3.3% of equity. A large chunk of that is performance -based, where the vesting period is two years. In your stock compensation schedule, I do not see any material Page | 14 change for the next two to three years. So just wanted to understand how would this ESOP vesting or granting will play out and how do we see that? Given that a large chunk of those will be at face value, how will that hit the P&L over the next two, three years?

So we've just announced the scheme and it has to go out for shareholder approval, Rishi. So we'll give you a better view into those in the next earnings call. Just to correct, the grants will be made every year, and the vesting is over a three -year period. Not two years. Post -vesting, the exercise period is two years, but the vesting itself is over three years. Yes, as you mentioned, a large part of that will be performance-based, both at the company level and the individual level. But the exact number of units to be granted in FY '27 and the impact of that on the P&L is something that we'll come back to you in the next earnings call.

Understood. All right. Thank you so much.

Thank you, Rishi. We take the next question from the line of Vamshi Krishna from Kotak Securities. Vamshi, your line has been unmuted.

Hey. Hi, actually, a really strong quarter, Ramesh. Congrats on that. So just wanted to understand on the beat itself, given that there was almost a $7 million beat in a single quarter. Were there any one -off engagements which contributed to this or something which came up during the quarter?

Sorry, I didn't get that question. MR, did you get that?

Are you talking about revenue enrichments or cost?

Yeah. Yeah, compared to your guidance of 22.5%, you were at around 23.6% (CC).

Oh, okay. Right.

Which is almost a $7 million beat. Yeah.

Okay. Yeah. So like we said, we had a better -than-expected Q3 and Q4, right? Typically our seasonal revenues are roughly 3% of our annual revenues, but this year they were more like 6%. Part of it in Q3 we explained because BroadPath's significant peak happens in Q3. Whereas in Q4, we had additional seaso nal revenues on the Sagility side, especially on the clinical side of the business, right which we had some visibility to getting into Q4, but it was higher than what we had anticipated. So that explains the difference between what we gave as guidance and what we actually achieved.

Yeah, just to add on to Ramesh's point, we had guided to about 5.5% of our full - year revenues as surge revenues. That has moved around 6% of full-year revenues. That gave us uplift in quarter four. Page | 15

Perfect. Understood that. Second is on your client pyramid itself. Now that you have more than doubled your clients in the $20 million bucket, but still I see the average client size in the 3 to 10 range, it's around $27 million versus your top three clients, which are maybe more than 4x of that number. So incrementally, since you have a reasonable set of clients, where you have a minimum threshold of, or say maybe you must have proven your expertise. So will your incremental efforts be focused more on mining these set of accounts or you will be looking to add more accounts?

Vamsi in a way both, right? Our traditional growth continues to come from existing clients, right? And as we keep adding newer clients, we may start with a smaller deal size, but we have the confidence of continuing to grow those relationships. To your point, a lot of these clients in the $5 million to $20 million range, or just over $20 million range, are still clients where we see huge opportunity. They may not go to the 4x that you're talking about of the top 5, but they definitely many o f them have the potential to double or more than double, right? So large part of our effort goes into continuing to mine those relationships and trying to grow them faster than the top five, and which has already shown in the results, right? Our top five grew at 11.9%, whereas at a company level we grew at 15%. So some of these non-top five grow much faster than the top five. But equally important is we want to create more breadth in terms of our client portfolio. So we'll continue to look for opportunities in the mid and small market space. A lot of the transformational solutions that we're talking about today, we believe has a lot of applicability in that segment where we can help them take out a large part of their costs.

Perfect. And my last question is on the Provider segment. The revenues here have actually stabilised in an absolute basis over the last four quarters. Can you just shed some light as to what's happening in this business and what's the outlook? Just on, say , AI impact, will this be relatively higher compared to your payer business, or how do you see that?

No. We don't think AI impact will be significantly higher in provider versus payer. I mean, it I think, like large part of what we do is on the revenue cycle and I mean, we get both effort -based as well as contingency -based pricing on the provider side. And so we are in the process of using AI to improve the efficiencies of a large part of what we do in the revenue cycle side. So we believe that that business will also grow. We'll take it offline, but that business has grown in FY '26 over '25. When you said stable, I'm not sure if you implied it didn't grow. It did grow, compared to FY '25. But we are looking at larger engagements even on the provider side. So we are in conversations, at least on a couple of opportunities where we are committing to give clients or prospects a significant cost take out opportun ity if we were to do Page | 16 pretty much end -to-end RCM for that. So we are fully confident of continuing to grow the provider business as well.

Perfect. No, I was just referring to 1Q to 4Q, where it was $20 million to $21 million. But nonetheless, point taken. That it has grown on a Y -o-Y basis. Those are my questions. Thank you.

Thank you. We take the next question from the line of Chirag Kachhadiya from Motilal Oswal. Your line has been unmuted, Chirag.

Yeah. So what was the annual wage hike during the year across different set of employees? That is question number one. And second, you mentioned you changed the quarter of wage hike, if I hear it properly. Then will this pattern continue in FY '27 as well ? And third, what is effective tax rate one can expect for FY '27? Yes, these are the three questions I have.

I'll answer the second. MR will answer the first and third. No, once we move into the April through March increment cycle, then it'll stabilise. This is a one-time thing just for Q4 of FY '26, a catch-up. But starting April, it'll be regular increment cycles every April.

Yeah, couple of other questions that you asked. Obviously, the hike will depend on the different geographies. You know, obviously, given the difference between the U.S. versus India, we give the normal hikes, but this particular one -time was a quarterly one-time payout as we transition from a calendar year to a full-year basis. From a tax perspective, we expect broadly the same level of ETR to continue around 24% to 25% for both '26 and '27.

Thank you.

Does that answer your question, Chirag?

Yes. Yeah.

Thank you. We move to the next caller. The next question is from the line of Sameer Pardikar from Elara Capital. Sameer, your line has been unmuted. You may Sameer, please go ahead. Sameer, we're not able to hear you. We move to the next participant and t ake the question from the line of Bhavik Mehta from JPMorgan while we request Sameer to rejoin. Bhavik, your line has been unmuted.

Hi, thank you. Couple of questions. Firstly, if I look at the revenue guide at low double-digit versus 15% organically, you're doing in FY'26. So is this a conservative guide given how the macro is and you might want to wait and watch how the macro evolves before maybe increasing the guidance over the course of the year? That's the first question. Page | 17

Yes, I mean, like I said, we're guiding today basis the visibility we have. Like I said, some of the deals, while they're different and more transformational, some of the timings of those deals could be a little variable. And that's why, basis the visibil ity we have, we are guiding to low double -digits. But we'll have better visibility as we go through the year and basis that we will re -guide on both the top end and the margin numbers.

Okay. Got it. The second question is on margins. Again, if I look at the band 24% to 25%, the midpoint, it implies like a decrease versus what you ended up doing in FY '26. So just wanted to understand what are the puts and takes or the headwinds you're building in for next year?

I think, we covered that, right? So MR, do you want to restate some of the factors? Yeah.

Yeah. First is, I mean, from a Forex perspective, we did say that if it persists at the current levels, we are reasonably confident of hitting the top end of our guidance. Two, obviously, there is that aspect of employee wage increases that we do give, which is funded from the FX that we get. Three, we are also looking at a more onshore kind of revenues. Even if you see this year, the share of our U.S. revenues went up, which is traditionally slightly lower margins than our offshore bus iness. So all of this combined to ensure that we are right now in this 24% to 25%. And as I said, if we're able to continue at this FX rate, we should be at the top end of our guidance, which does definitely denotes a lower dilution than what you implied in your numbers.

Okay. Got it. Thank you.

Thank you. We move next to the line of Sameer Padikar from Elara Capital. Sameer, your line has been unmuted. You may speak. Yes, Sameer, please go ahead. It appears there is an issue at his line. I go to the line of Rishi Jhunjhunwala from IIFL Capital for a follow-up. Rishi, your line has been unmuted.

Sorry, I don't have a follow-up. Thank you.

My apologies. We move next to the question from Siddharth Vora from HSBC Mutual Fund. Your line has been unmuted.

Hi, Ramesh.

Hi.

Ramesh, just a clarification from my end. You're saying that increasingly there is more revenues and the engagements are on -site. So if any change in nature or complexities, how is the overall deals evolving? At the same time, if there is a shift to on -site, there should be a natural lever to your growth rates versus a normal Page | 18 year. So how should we think about that while you are saying that your visibility currently is on the lower double-digits side?

Yeah. So Siddharth, when we say onshore, it's not on -site, right? I mean, unlike other businesses, we don't deploy people to client offices or client locations, right? So this is delivering for a client from the U.S. geography because of whatever restrictions the client may have or because of regulatory reasons that the work cannot move offshore, right? So that's the kind of business. For example, BroadPath, most of BroadPath delivery is onshore, right? While our attempt is to move any new business that we get that to offshore. Like I said, depending on regulatory reasons or client preferences, some of the work may have to be done onsho re. Similarly, on Payment Integrity, some part of our delivery happens onshore. So growth in those businesses will have a larger onshore component compared to offshore. Having said that, like I've explained in the past, things do tend to move from onshore to offshore as well, right? So while some of the newer clients may want to start onshore. Over a period of time, they may also be open to moving that work offshore. But at this point in time, if we look at some of the opportunities in the pipeline and where the growth is going to come from, the rate of growth may be slightly higher in onshore geographies compared to our offshore geographies. So that was the comment around margins. But to your other point, like I said, we will revise the guidance, as we go along, depending on the visibility that we have.

Just a follow-up to that. Given the complexities and maybe more hiring nearshore, if not on-site, is how has the historical revenue share or the headcount share been on-site, nearshore and in India or in offshore locations? And do you see that changing going forward with advent of AI or things the way they are changing going forward?

No. Right. For like I said, for clients who've already worked with us or who are used to the outsourcing model, given the cost pressures that they are under, if a work can be delivered in a lower cost geography, they would prefer that, right. So it's not a question of, there is a shift in perception, or there's a shift in work from offshore to onshore, right. So I'm not saying that. But as we get newer clients in the mid - market space, the newer clients may want who are not accustomed to the offshore model, they may want to start more onshore, right. And there are other kinds of businesses like Medicaid and others, where the onshore component, because of regulatory reasons, could be higher than the offshore component. So those are the main reasons. It's not that existing clients are moving work from offshore to onshore, because given the pricing pressures today, if existing clients Page | 19 can move more work from their in -house to partners like us, they would rather do it offshore than onshore.

So you'll say your headcounts and revenue ratios between onsite, offshore will remain in line with your historical trends?

With the revenue mix slightly increasing towards onshore. That's what MR was saying. One of the…

I'm saying in terms of three years kind of a scenario…

Yeah.

…or structurally, how we look at the business.

Yeah. Nothing significantly different. Yes.

Nothing different. Yeah. Sure. Got it. That's it from mine. Thank you so much.

Thank you.

Thank you. We go to the line of Sameer Pardikar from Elara Capital. Sameer, your line has been unmuted.

My question is basically on growth. If I hear it correctly, the growth for us last year organic was around 15% odd. And we are guiding for a lower double-digit growth at a consolidated level. That means possibly organic growth could be even lower than that. So despite such strong numbers coming in, any reason for some lower growth for this year? Is it because of the AI compression which you talked about in the earlier call about 1% or 2% going to a little higher to 3% to 4%? Is it impact of some AI compression we are looking at, or what is the reason for it?

So first let me clarify, right? As we get into FY '27, everything is organic, right? The last acquisition we did was in January of 2025. In FY '27, there is organic unless we do any new acquisitions. So the guidance of low double-digits that we are giving is for organic growth. So any inorganic components that we add during the year will be over and top of that guidance, right? So I hope that is clear, right? So it's not that I'm giving an overall growth number and the organic number is goin g to be lower. Guidance is for organic growth, right?

Yeah. So my question was basically do we see some compression because of AI?

So the compression has historically been there and like I've said. So for example, the compression is going to be slightly higher than last year, right. So we've traditionally said it's about 1% to 1.5%, but we are predicting the compression to be more like 2% in FY '27. Not s ignificantly higher, but definitely higher than the Page | 20 past. And those numbers will gradually inch up is the belief that we have. And we'll see how it plays out, right? But every, I mean, even historically, whatever numbers we've grown at, it is net of all of those compressions because of not just technology and/or AI, but also, like I said, in our business there is geography shifts. So when work shifts from a higher revenue geography to a lower revenue geography, there is revenue compression, right, and volume changes and so on. There are a lot of reasons why there could be revenue compression. But purely if you look at technology, like I said, it's been historically at the 1%, 1.5% level, but we think it'll be more like a 2% plus this year.

And the second part is, when we have an unusually higher attrition for the quarter, do we typically have a moderation of this quarter from quarter four to subsequent quarters? So I did not get that why the attrition was a little higher this quarter versus the historical numbers.

It's the same reason why we also said we have a better actual revenue than what we guided, right? So we said we had higher seasonal revenue in Q4 than what we anticipated. And so that higher seasonal revenue, with the fact that seasonal, once that revenue goes away, the corresponding head count also goes away, right? So the higher attrition in Q4 was a result of the higher seasonality in Q4.

Okay. And we have observed unusual, the higher other expenses were very high in FY '26. So any maybe highlight for that number inching up in FY '26?

Yeah. It is.

MR you want to it?

Yeah. A lot of it is account of higher IT costs and investment that we did in IT from an AI and transformation kind of a perspective. We also have rationalised some of our centres in a couple of our geographies, which has led to a little bit of write -off of assets. So those two would have contributed to a little bit higher cost. The first one being more primary reason.

So we do expect this number to moderate little in next year?

We'll continue to do our investments in AI and transformation, as I said. So we would expect that number to continue to be reasonably high.

Okay. Sure. Thank you so much.

Thank you. We move to the next question from the line of Vamshi Krishna from Kotak Securities. Your line has been unmuted. Page | 21

Yeah. Hi. Thanks for the follow -up. Ramesh, so just since you said there were higher than expected seasonal revenues during this quarter as well as last quarter. So how should we think about the quarterly seasonality that will play out in 1Q? So should we expect this to be slightly steeper?

So broadly, Vamshi, like I said, while it's seasonal, we expect this seasonality to occur every year, right? So because of the BroadPath acquisition and also some of the more seasonal work that we've got, what traditionally used to be more like a 53 47 H2 to H1 split, is becoming more like a 54.5%, 55% to 45%, right? So and I think that's the way we think it'll continue into the future as well.

Perfect. That answers my question. Thank you.

Thank you. That concludes the webinar for today. Thank you members of the management. On behalf of Sagility Limited, we would like to request all of the participants to log off now. Thank you.

Thank you.

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