I'll start off with that, Sanjesh. Firstly, I mean as I explained in my commentary as well, there are a little bit of a one-off costs on employee costs which contributed in but let me take the easy ones out first. The impact on TCTS, the loss-making contract which I called out for the full-year is at 70 bps, for this quarter is only 10 bps. So the benefit we had was only small of 10 bps. When I mentioned operating leverage drivers, I had also spoken about this in the previous quarters, that we have a glide path for every tower as to what their destination portfolio is and what are the drivers that will take them to the destination margin for each of them. I'm confident that a lot of those drivers are kicking in and this is getting reviewed by the business and we are very, very diligent about that. So looking at the progress of that is what I had actually called out, that the operating leverage drivers are kicking in. And that gives us the confidence that we will be able to deliver the margins for the rest of the year, deliver a consistent improvement over last year. If we need to get to 23-25% EBITDA in the medium term, very clearly, it's not going to all come in in the final year. There is going to be an organic move towards this. So there were certain costs that were spent in the prior year. Hopefully, from where I sit today, I don't see those costs coming back in. I don't know, a new acquisition, spend on DD that might change, but as of now, I don't see any of them. So I'm confident that we will be able to maintain that at 20%. Likewise, all other growth that we are expecting and therefore, as a result of that, that operating leverage kicking in is also somethi ng which is actually factored in, which gives us the confidence that we will able to get to 20% for the rest of the year.

It appears, Kabir, that we can actually do more than 20%. Will that be a fair assumption if revenue growth kicks in as we are anticipating?

Well, if that happens, that's good, but let's be cautious with what we see on our forecast as of now. That's our endeavour as of now.

Got it. Great. Now switching to the revenue, where I think we are yet to see the kind of positive surprise. Lakshmi, you said in last quarter that there was a very healthy order book in the enterprise business. Well, this quarter had a decline of 5.6% Q-o-Q and again on Y-o-Y basis. If we adjust to the acquisition, the growth appears not so exciting. The same again goes for India, YoY growth of only 2.5%. While we were very confident on these two segments, while these two segments still doesn't look like are firing, like what we thought.

Sanjesh, I'm not sure if I said anything about the order book in the last quarter. I've been saying that last few quarters it has been flattish. In fact, in the investor’s day, I said we only had a marginal growth of 2% or something, is what I said.

Correct. Correct.

This quarter I called out that we had a healthy jump in our order books. This quarter did not see a decline. This quarter saw a very healthy jump on the order book, even though it's on the back of couple of large orders. One of the orders, we can start to realise revenues, some parts of it this year. But the other order, I think we actually published that it's World Athletics and World Athletics, the first event is in Tokyo next year, so it's an order booked this year. There might be some revenues coming in, but the larger parts is from next year onwards. The order book, we are very pleased about the order booking that we have this quarter. I wouldn't call it momentum because again, as I said, is it back of two or three deals. But the funnel is looking good, our engagements are good. We just have to continue to execute regardless of what the macro conditions are.

Again, Lakshmi, touching upon even last year when in analyst meet you said that order book sales funnel growth was upwards of 100%, while order book was just 3% growth. You did try to explain in the call, but still that conversion is looking very painful for us, or much slower than probably what we had thought. Any discussion there which highlights that things can improve materially?

Sanjesh, I'm not sure if I ever said our funnel was 100% improvement.

No, you had that slide in the analyst meet.

100%?

Yeah. I think it's for digital services, if I'm right.

Yeah. Anyway, I think Rajiv and team will clarify this point. I continue to maintain that the funnel is looking good. I'm not sure, the conversion has been slow, Sanjesh, there's no doubt about it. This quarter, again, I repeat, what I said has been very good and very healthy. I think one of the other characteristics of the orders, particularly when it comes to the network, is the fact that largely enterprises have a cycle of three, four years before they touch it. It's not like applications and other things. If they have 100 applications, they can outsource 50 at any time and keep the rest or decide. So these comes in various cycles. That is one. Second is in infrastructure, it is, I said in the investors meeting, it's like touching live wire and if it isn't broken, don 't fix it is another attitude when it comes to these. There are multitudes of factors that go into why there are delays besides the macro conditions. But all I would say is that the funnel is healthy. We are increasing our engagement with our customers, particularly the G50 customers, which largely used to be India centric. Now we are expanding our relationships with them across the globe. So these are all good indicators of our engagement with the enterprise segment.

Great. Any comment on India, Lakshmi? That would be my last question.

No, again, India is healthy. I mean, this quarter is a blip due to the one-off we had in Q1 of last year, but I wouldn't read anything to, India is still quite strong funnel and we will end up strong.

Got it. Thanks for patiently answering all those questions and best of luck.

Also, I'll just remind Sanjesh and all others as well, our TCL standalone numbers are not comparable because of the split we've done with some businesses into Novamesh. So we need to be a bit careful reading those numbers.

No, no. I am reading from our data pack sheet where we segregate between India and international.

Thank you, Sanjesh. The next question is from the line of Vibhor Singhal from Nuvama. Vibhor, please unmute your line and ask your question. Thanks for taking my question. So, a couple of questions from my side. One is on the growth part. So Lakshmi, again any colour on the CPaaS business, which you mentioned that there was global headwinds and seasonality in the business in this quarter. But what is the outlook for this sector in the near future? I know, I mean, over the medium to long-term, I think they're excited about this space. But what would this be, let's say, in the near -term, in the next 2-3 quarters, given the global focus on profitability. And how do we see this going, let's say in FY25?

Short answer is we will grow. I think there are customers that we are acquiring and since it's a usage business, it depends on how the usage picks up. But we are winning deals in Kaleyra, which will help us to grow despite the overall CPaaS market being muted globally. So we will end up growing.

Right. Any specific domains where we are kind of targeting market share gain or anything that you could probably throw light upon?

Any specific regions or what was your question?

Let's say, I mean, in terms of WhatsApp or let's say any other domains. What I meant is that we are looking for?

Yeah, so, the Kaleyra platform, bulk of the revenues is in SMS. So that is what is in Stage 30 as we call it. And that is where we are actively going to market. The other channels of voice, WhatsApp, RCS and email, we have reached what we call a Stage 1. So the products are built out, the MVPs are used by now some anchor customers and it will take some time to move to Stage 3 and 30. So the large part of the revenues will come from the SMS channel even though we are acquiring channel customers on the other one. But the scale will happen through the SMS.

Got it. And just a small clarification now that we moved the SD-WAN part from Next Gen connectivity to the Cloud & Security bucket. If I remember correctly, the Cloud & Security bucket used to be predominantly India business. Would the same hold true also or a good amount of SD-WAN business was outside India and hence Cloud & Security would now be kind of more, I mean, would include more of global revenue than just being purely Indian?

Yeah. In Cloud & Security, all of the SD-WAN, SASE and largely the other aspects of security is all global. Our IZO private cloud is India focused. In security portfolio, we have a SOC and a cloud SOC offering that is largely for India. Even though in cloud SOC we have acquired now some international customers which again I would say is in Stage 1 and not rolled out to all the geographies yet.

Got it. Sure, that's helpful. Just one question for Kabir. Kabir, you mentioned that I mean, solid performance on the margins this quarter. So you mentioned that we are looking to remain at that 20% level margins for the remaining part of the year. Does that mean, I mean, the margins will stabilise at this level or you meant that probably there would still be some margin expansion through the remaining quarters?

Well, I mean, we are expecting to grow our margins towards 23%-25%. So you should see an organic inch up in that, but it will be in that range. I'm hoping that this will not go below 20%. So we were at 18.6%, if you remember last quarter. We increased it up because our ambition, as we said, is to get back there and the sooner we get is what is important. So there are multiple levers that we're going to do organically driving all the operating leverage drivers . I mentioned before, strategic review of subsidiaries that we are talking about, we have done one of them already and we will continue the review for the rest. Plus the cost synergies that we need to get. So there are a lot of levers and a lot of balls in the air, Vibhor, if I may, which gives me the confidence that we should not go below 20%.

Right. But if I were to just maybe probe a bit further. Don't want the number. But directionally, should we be able to improve margins from the 20% levels in the remaining 3 quarters of the year?

I would say yes.

Got it.

So just to elaborate on the CPaaS, even though I said that SMS is where we anticipate bulk of the growth this year, that is based on some of the, and I did mention that we are acquiring customers and we focused on some of the larger deals there. But also we are equally focused on margins. So it doesn't mean the SMS growth will come at a margin dilutive. So in the Kaleyra, we're very happy about the integration efforts on platform engineering and the product roadmaps. Our focus will be to derive all the benefits of the synergies on cost and so on. But already the synergies on go -to market is playing out. We have acquired some large deals and that is what gives us the confidence that we can grow and grow profitably.

Thank you, Vibhor. I would like to remind that interested participants may click on the raise hand button to join the Q&A queue. The next question is from the line of Prateek Dugar. Prateek, I request you to please identify your firm name. Prateek, you have been unmuted. Please go ahead. I'm from Intelsense and first of all, I'd like to congratulate the management for the good set of numbers. And I had two questions. First question is a bit contextual. I just wanted to understand our total addressable market for the SASE based offerings because with some large companies in the U.S. like Palo Alto had signed 8 figure deals in the past. And we also had a partnership with Fortinet wherein Fortinet has in its PPT, given projections about the entire security, networking and the unified SASE market, they are expecting it to be a $208 billion kind of a market by 2027. Are we actually working anything in this domain? I mean, do we have any offerings in this domain?

Yeah, Prateek, we have 2 offerings in this domain. One is what we call as a hybrid SASE. Even today, very large enterprises are looking to see how to bring together a best-of-breed solution, which means that they might take an SD-WAN from a Versa or a Cisco and bring the SSE and other security solutions from players like Palo Alto or Zscaler and so on. And that is what we call as the best-of-breed solution. And that is an offering that we have already reached Stage 30. We have implemented fairly large-scale solutions globally for customers. The new offering that we have launched is what we call as a Unified SASE, which is a single vendor and a single pass SASE as they call. And that we have launched in partnership with Versa. And that's a global launch that we did. And we've already got a couple of customers signed up and that in our opinion would be large towards the mid -tier customers in the international markets. So that is where these two will fit. We have created a special team that has a GTM responsibility for this. So we are very actively focused on this market.

Okay, thank you. And the other question was like in our last concall we had mentioned about replacing incumbents and some certain challenges that you were facing regards to the awareness levels about our solutions. If you could just give any progress on that front and share some of the name of the incumbents or give a flavour about the total addressable market in that area?

Yeah, I have to give you a very detailed answer for that. I think the incumbents are dependent on the geographies that we compete in, but largely the global players when it comes to the network modernisation of underlay as well as the overlay implementing either hybrid or unified SASEs, we see the major players being NTT, Orange, Verizon and the usual suspects in that space. So those are the big competitors globally. As I said, we have a challenger position in the international markets and relatively a small presence compared to them. But we are very confident because we have something very unique in our underlay called our IZO WAN proposition where we are able to offer very high performing network with SLAs on Internet and so on. And similarly on the overlay part of SD-WAN and SASE, we have a great experience and being a very B2B focused company, we bring the best of both the network, we bring the best of tooling and technologies and some of the IPs we have created there and bring some of the service capabilities that these large organisations require. And that is what we think will be a winning mix in the market.

Thank you, ladies and gentlemen. This brings us to the end of the Q&A session. I would request Lakshmi to please share his closing remarks.

Thank you, Sudeshna. I think I would sum up the quarter as a very robust execution. We have seen an uptick in EBITDA from 18.6% to 20%. We have seen, from a decelerating Q4 in digital and data revenues to an uptick again. Y- o-Y, it's been an excellent acceleration. Across the digital portfolios, most portfolios have kicked in, be it MOVE or in the Cloud & Security portfolio. And of course, with CIS aided through the inorganic route. The other portfolio of Next Gen connectivity, as I said was a blip and will pick up in the coming quarters. So overall, we feel very confident about the products in the portfolio and our engagement in the market, and we'll continue to execute on the strategy. Thank you.

Thank you, Lakshmi. Thank you, Kabir. This brings us to the end of the management call. In case of any queries please write in to investor.relations@tatacommunications.com. The recording will be available on the website in the next 24 hours. You may disconnect now. Thank you. This is a transcription and may contain transcription errors. The Company or sender takes no responsibility for such errors, although an effort has been made to ensure high level of contextual accuracy.