TBO Tek Limited (TBOTEK) Earnings Call Transcript

Good evening, everyone. This is Ashish Shah from Investor Relations team at Adfactors PR. On behalf of TBO Tek Limited, I would like to welcome you all to the earnings conference call for Q1 FY '27. Today on the call, we have with us from the management, Mr. Ankush Nijhawan, Co-Founder and Joint Managing Director; Mr. Gaurav Bhatnagar, Co-Founder and Joint Managing Director; Mr. Vikas Jain, Chief Financial Officer; Mr. Akshat Verma, Whole-Time Director and Chief Technology Officer; Mr. Pramendra Tomar, General Counsel; Mr. Shreshth Mahajan, Associate Director, Investor Relations. We will begin the call with brief opening remarks from the management, followed by a Q&A session. Please note that certain statements made during this call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties that could cause the actual results or projections to differ materially from those statements. TBO Tek will hold no responsibility for any such actions taken based on such statements and undertakes no obligation to publicly update these forward-looking statements. I will now hand over the call to Mr. Gaurav Bhatnagar for his opening remarks. Thank you, and over to you, sir.

Thank you, Aashvi, and good evening, everyone. Welcome to our Q1 earnings call. We had uploaded our shareholder letter on our website yesterday, and I hope all of you had a chance to go through it. Before we jump into Q&A, we wanted to highlight a few salient features from this quarter. The first one, I think this was by far the toughest quarter for the company in the last 2 years. The increasing disturbances in the Middle East caused severe disruption in travel across the globe. And I think the disruption expanded far beyond Middle East. Markets like India and Europe were also impacted because travel from East to West and West to East was disrupted because it is heavily reliant on the Middle East carriers. The airfares are also very high. In spite of that, the company has delivered growth, both on top line and bottom line, and we are very proud of it. It has started to show the fact that the diversity of source markets that we operate in is a big factor in building resilience in our business model. Given that no one country or no one region heavily dominates our top line helps us cushion effects like the ones that happened in the last quarter. A couple of other things that have helped us is that we were, as you all know, investing heavily into market development in Europe, and that helped tremendously even in a very tough quarter and travel in Europe was generally impacted as well, but we still delivered a 24% year-on-year growth in Europe. The other thing that is helping the business, especially looking forward, depending on how long this crisis lasts, is our increasing saliency of North America. With the acquisition of Classic Vacations, North America is starting to be almost 1/4 of our hotel GTV, which is substantial, and we believe we will be able to create growth plans over there. And that saliency will help us because that corridor, the North America, Europe corridor is far more resilient compared to other travel corridors at this point in time. The final highlight purely on the numbers was that Middle East, in spite of massive crisis within the region, delivered flat numbers, right? So it actually delivered 1% growth in constant currency, which is very commendable and full marks to our team for delivering that. So net-net, our view is that the expanded investments that we made in retrospect were very timely because that helped us cushion a potential degrowth that could have happened in this quarter, given our heavy reliance on the Middle East market, but Europe came through. And the acquisition of Classic was also very timely because it has given us an entry into a much more resilient corridor. The second thing to highlight for this quarter is that operating leverage was quite visible. Our bottom line, our EBITDA margins grew significantly faster than our GP or revenue margins. You all know we have been promising the operating leverage, and it started to feel a bit mythical because we've been promising for some time. We are expecting to start to see it in Q4, but unfortunately, the war broke out in that quarter. But we are happy with the fact that Q1, there is a clear demonstration of operating leverage. And we expect -- given that margins have expanded even on moderate top line growth given the war situation, our expectation is that as top line growth normalizes when things come back to normal, the bottom line growth should accelerate further. The final point we want to highlight is that you would have observed that we have shared numbers in constant currency as well. This was feedback from some of you in the last call as well. And secondly, this specific quarter was very unusual because -- and you would see numbers both in INR and in constant currency. There was almost an 11% gap in our GTV, hotel GTV when we looked at in constant currency versus INR and which is leading to significantly higher growth numbers if you look at INR stand-alone. So in interest of transparency, we have started reporting numbers in constant currency as well. We should also highlight this was the first quarter when such a significant gap happened. For example, even last quarter when the rupee had started to depreciate -- there was only a 3% gap in GTV and hotel GTV in constant currency versus INR. So we did not find it significant enough to report separately. But given the steep depreciation that has happened on a year-on-year basis, we have started reporting numbers in constant currency as well. With that, we'll take a pause and open for questions.

[Operator Instructions] The first question is from Mr. Karan Uppal.

So congrats on very strong execution yet again in a very tough quarter. So all around performance on top line as well as bottom line. So congrats on that. The first question is on the operating leverage. So the EBITDA to GTV number in this quarter was at 1.3%, which was quite strong. The quarter got benefit from the classic seasonality and operating leverage in the organic business also. But going ahead, do you believe that this -- on a consolidated basis, EBITDA to GTV number at 1.3% is sustainable and hopefully grow from here as the revenue growth accelerates?

See, Karan, I think EBITDA to enterprise GTV is going to be a tricky number to track, especially at this point in time for a few reasons. First one is that -- and as you know, there is a fair bit of difference between the take rate of our airline business vis-a-vis our hotel business. So as airline business starts to show its own growth, that saliency can move a little bit, which can have an impact because of the fact that the GTV volumes on airline are very high. The second aspect is that given the crisis, and you would have seen that the take rate in this quarter was slightly lower because of the fact that there is -- the regions were fighting for business in a tough environment. And from a dollar value perspective, they would be any growth would be accretive. But they will be selectively placed in such crisis situations where we do drop margin a little bit to win disproportionately more business. So I think the right metric to continue to look at, especially from an operating leverage perspective is GP to EBITDA conversion and that number should continue to improve.

So Gaurav, you are indicating 26% I mean, EBITDA to GP, that number should continue to improve from here on is what you are seeing?

That is correct.

Got it. Secondly, in terms of Middle East, given the situation remains volatile, so do you expect that to come back to growth anytime soon? Because last time you had mentioned that the cancellations were lower and then search volumes were also increasing. So how are things on the ground currently?

Karan, the situation is extremely fluid and we have also the fact that the Middle East was flat is quite an achievement in all honesty, given that, that is the eye of the crisis right now. It is also very hard at this point, we have given upon predicting what's going to happen because the situation literally changes every hour. The last 22 hours, again, some kind of escalation has happened. And that's true just on the ground as well. There is a frequent change in behavior and mood on travel on the ground. So I would really not hazard a guess on what's going to happen in the Middle East and when it comes back to growth. We are just thinking of that as -- we are thinking of that as optionality at this point in time that should that growth come in, that helps us accelerate bottom line growth even faster. But given where the situation is, it's very hard to back on it.

Got it under that. And ex of Middle East, so Q2 is generally seasonally strong for TBO, but classic the positive seasonality will reverse in Q2. So how should we think about the growth in rest of the markets like Europe, North America, APAC from here on?

See, I think -- look, I think year-on-year growth should be somewhat irrespective of seasonality because we are comparing year-on-year. So especially outside of Middle East, Middle East has dependency on when Ramadan falls and when Eid falls. But other than that, rest of the regions have similar seasonality same period every year, more or less. So the year-on-year growth would look probably similar. You're right that from a Q-o-Q perspective, this is a heavy quarter for Classic, no doubt about it. So obviously, on a Q-o-Q perspective, that can have an impact. But beyond that, outside of Middle East, we would expect nothing significant to change from a trajectory perspective, assuming nothing adverse is happening in the world.

Got it. Got it. No, I was just thinking about, let's say, in this quarter, FIFA World Cup was there. Next quarter, European summer holidays would be there. So are they impacting the overall growth trajectory for you?

See, on a Q-o-Q basis, Karan, historically, Q2 is bigger than Q1, and you would expect it to be same way. And that is what we are really anchoring around that just like last quarter, we said that the same for Q-o-Q growth and Y-o-Y growth. We continue to aim for that. So yes, from that perspective, Q2 should be somewhat better than Q1, given that July, which is the heaviest travel month in the Northern Hemisphere falls in Q2.

We now move to Swapnil.

Thanks for taking the feedback and sharing the CC numbers this time around. So my first question is around your growth numbers for the organic business. So 15% Y-o-Y growth on a CC terms is great at a time when the Middle East is affected definitely. From your growth standpoint, how do you model this from a go-forward perspective? Assuming everything comes back to normal, how should we model this growth from a slightly medium-term perspective?

Swapnil, I think if we were to just look at where we were from a growth profile perspective in Q3 of last year, which was last full quarter, which was in some sense of normalcy, we would absolutely expect to get back to that when things get normal. The when is a big win, and we really don't have an answer for it. I guess nobody does. But our expectation is that when things get back to normal, business comes back to similar growth profile on the way we were growing at that point in time. Now whether this happens in this Q3 or Q4, very hard to say, given what the situation is. But broadly, we don't expect a change in trajectory pre and post for at this point in time, if anything, and I don't -- this is not a commitment at all. But if anything, what we have seen is that post crisis, usually, the players -- the bigger players become bigger because of the fact that attrition usually happens in smaller and midsized players.

And will it be fair to say, Gaurav, that most of this growth will be driven by Europe and APAC, which this quarter did fantastically well for you, given that a lot of your investments last year would have gone in these 2 markets?

Yes. I think, Swapnil, that's fair to say Europe and APAC are leading the growth charter right now. We are also expecting to see reasonable growth in a like-for-like basis in North America as well, starting whenever October, November, December when it's a like-for-like comparison on a very -- admittedly on a very large base in a very tough market, but we are looking for growth levers over there as well.

Got it. And the second question is with respect to your organic margins. This quarter around, you delivered 1.5% EBITDA margin on GTV. Let's just assume things normalize, you start reporting 20% plus growth at the GTV level and possibly higher at a GP level. These margins can expand to around 1.5% eventually. Is that the right way to look at it, assuming your investment phase is behind and you don't need to meaningfully increase your SG&A cost here on?

I mean Swapnil, look, internally, like I was mentioning, we have come down to starting looking at our numbers from a GP to EBITDA conversion because now we have 3 different types of GTV, which have very, very varying GP profiles. We have the air GTV, which you know is like a 1% kind of a GP profile. But on the other hand, there is plastic, which is an 11% GP profile. And then there is our organic business, which is in the middle. So for us, it just becomes very hard to model by looking at GTV as blended GTV. But what we do know is that from -- at this point, SG&A is unless we choose to -- and we'll tell you if we choose to, if we choose to relook at accelerating market development, et cetera, our SG&A growth will be significantly slower than GP growth. And hence, those margins should expand meaningfully.

Understood. And how to look at the Classic Vacation margins? I mean, when I do the same math on classic Vacations, the 3.4% margin is meaningfully higher versus the previous numbers that we have reported. So directionally, how should look at that business?

Swapnil, I think directionally, we see look, we have acquired this business only 6 months ago. And directionally, not a whole lot has changed in it. You would be seeing higher numbers because of the fact that this is a heavy check-in period, right? So hence, the EBITDA is historically highest in this quarter for Classic and hence, those numbers will look higher. But nothing has materially changed either way in that business.

So on a full year basis, one should building around 2.5% margin. Will that be a fair assessment or like...

Yes, I think that's a fair assessment.

And just last thing on your working capital side as well. There was some release this time around. I remember that there was some working capital investments last time. From a seasonality perspective, will this -- is this the way to look at -- there will be some quarters where you will need some investments on working capital, some quarters, you will have some releases? Or it should ideally be meaningfully negative working capital each quarter. I mean I'm just trying to triangulate those things.

So Swapnil, working capital does have a seasonality impact. And to give an example, like in the last quarter, we have explained some of those items more seasonality or I would say the how the business for example, the performance linked incentives, et cetera, they get accrued from the hotels or the airline suppliers, et cetera, over the year. So either they would be the December calendar or April to March. So generally, those accruals would be more or less high at the time of March. But those accruals get released -- the payment gets released during the first half of the next year. Similarly, at times because of the supplier mix, et cetera, as well, some changes happens in the supplier mix and because there are different payable days for different suppliers that may also impact the working capital movement.

Okay. And just a related question to that, what would be our net cash position right now? I understand that there is some borrowing that we have for the classifications business. So net of that?

We have reported INR 1,980+ crore as the cash in bank, we have $70 million of loan as well as a EUR 6 million of a working capital loan for [ Jambo ].

We now move onto Mr. Kavish.

Congratulations on a great set of numbers. My first question pertains to India Airlines. Just trying to understand a bit more on this, 15% GTV growth this quarter on the back of volume shifting to East Asian carriers. Does this mean our market share is far higher with East Asian airlines versus other geographies? And overall airlines grew 20% in 3Q and 4Q FY '26. That was 17% this quarter. What was driving the momentum in 2H FY '26 if this quarter's strength was attributed to this volume shift that we've spoken about in the shareholders' letter?

So Kavish, very difficult to say that because of the Far East airlines picking up the share. I mean I think a lot of people are also flying on the European airlines. But I think we kind of grabbing the business and I think we did some right things in terms of our customer service and I think the CAMs very aggressive picking up this business. So nothing to do with the shift of Far East, et cetera. But I think overall, it up well and that 15% growth what we are showing you is something that I think was commendable keeping in mind the situation we were in. So go to the team for the same.

Got it. And on Classic, we have mentioned that bulk of integration of Classic will be completed by 3Q FY '27. Earlier, of course, we've spoken about the steps that we have taken to integrate and start cross-selling with Classic. But what levers are yet to start contributing to the business? And what kind of an impact would you envisage led by these spending levers?

Kavish, basically, it's a 3-pronged strategy, it's quite straightforward. One is we are expanding our feet on street sales team in North America, both in the Classic as well as the TBO North America business because it's a very large geo and very, very distributed and a very large travel adviser base over there. So that's the first step, and this has mostly happened. We have already upped our hiring and most of the hiring is actually completed. The second is integration and automation of many of the, say, back office and customer service experiences, for example, implementing our enterprise CRM into Classic and things like that, which is currently underway and which will allow us to improve the quality of service and also make it more measurable and more efficient as well. The third is the platform integration, which is the big one and which we are likely to finish by CY end of this current calendar year. This is what will allow seamless selling of -- one seamless integration of the TBO platform into the Classic ecosystem. And second, we have more seamless selling and buying between the 2 platforms. So while we have already integrated one way where TBO supply is now powering a fair bit of classic supply, the vice versa cannot happen unless the platform migrate. So that's the other upside that we will see once this platform migration is completed.

So is it fair to assume that most of the cost synergies are in the numbers already or cost impacts are in the numbers already and revenue bit will see some pickup going ahead. Would that be a fair conclusion?

Yes, I think that's a fair conclusion.

We'll take the next question from Mr. Manish.

This is Manish Adukia from Goldman Sachs. Firstly, congratulations again on a fantastic set of numbers across the board. I had a couple of questions. The first one is just maybe a little bit more or delving deeper into just the modeling bit as we think about full integration of Classic and starting December quarter, they will fully be in your base. So when I look at, say, your GP growth, they are maybe 2 opposing forces as we approach the December quarter. One is, let's assume that Middle East and Europe maybe normalizes a bit more, so that should be a tailwind to growth. But then on the other hand, you have Classic, which will start forming a part of your organic growth. And because at least for the quarters, we don't have some visibility of how the seasonality plays out. How should we think about your overall GP growth once Classic fully comes into the base? At this point in time, you're growing at about mid-teens or mid- to high teens on an organic basis. But because Classic is 1/4 of your overall GP, is it safe to assume that from December quarter, overall company level GP could actually see a bit of deceleration despite Middle East coming back? Or is that maybe a bit of a premature assumption?

Manish, I think you're right. There are 2 opposing forces playing right now. And I think the first thing to acknowledge is that for Classic, which is a business that we have just recently acquired it will be a period of time before we get Classic stand-alone. And I'm not saying North America as a whole, but Classic stand-alone to start delivering enterprise-level growth. I think we'll have to find those levers. We are confident we'll find them, but that's definitely a few quarters away. On the other hand, if you remember the -- and when we presented our Q4 numbers, we had shown the organic growth in Jan and Feb before this war broke out. That growth was far higher than the 15% that is historical and that probably we are trending at. So -- and those are the 2 opposing forces that we need to lend for. I don't have an answer for you that where will -- what will that look like. But if wishfully thinking if things were to normalize back, I think we did not enjoy the full benefit of the investment we made last year. Where enjoyed in the sense that the market disrupted and we still managed to grow. But had the market not disrupted, we were expecting just absolute bumper growth in Q4 and Q1. Now how soon normalization happens, does it happen in O&D quarter? And are we able to see similar growth numbers at Jan Feb, then we are not concerned at all. But we also know that the ground realities of Middle East are very unpredictable right now, but we are also 3 months, 4 months away from that quarter. So very hard to predict, Manish, but we still remain optimistic that between the blend of what we are expecting to do in North America versus where our organic growth was starting to normalize at a new normal, if that comes back, we should still remain fairly healthy.

Very helpful color. And then maybe just a follow-on question. Firstly, on the 2 regions which were discussed earlier in the question as well, which is APAC and Europe, which continues to do really, really well organic basis. 30% plus growth closer to 5% in APAC. And part of it you alluded to were a function of your timely investments, which have helped you get this level of growth. Would you be able to provide any color as to the investment that you've already made for what duration you would be able to reap the benefits of those investments before you may need to undertake another new investment cycle? What I'm trying to get at is, for how long do you think these APAC and Europe growth could sustain before you maybe need to undertake a new round of investments?

It's a tricky question to answer, Manish. But let me just share that on the whole, a key account manager will show at least 4 quarters to 6 quarters of increasing growth before they start to kind of exhaust whatever they could have gathered within their region. With the caveat that this varies a lot, especially in terms of how much revenue you get per car depending on the source market. So Germany would look very different from Italy would look very different from Philippines, Indonesia and so on. But this is sticky, right? So one of the premise that we work with, Manish, is that once you bring a customer in, they organically grow plus your sales guy does bring in more business as well. So -- and which is where the operating leverage happens. So it should not be so time sensitive that you need investment every 3 months or 6 months to drive another 3 months or 6 months of growth. So it is definitely more than that. We don't have any early signs right now, especially because of the fact that signals are disrupted because of the crisis, but we don't have any early signs that we would start to see slowing growth because the investment has started to kind of already mature.

Very clear. My next question was on Classic again. And I know again, it's been early or it's not been even a year since you've completed the acquisition. But from a marker perspective, what will give you comfort that your Classic Vacation acquisition is moving in the right direction and is allowing you to get a foothold in the largest travel geography, which is North America? And what might it take for you to really realize the full potential of that market? I know it's a very subjective 20,000 feet view question, but any color maybe you can provide that will be helpful.

Okay. So I think, Manish, the first realization for us and which is really a revelation for us is how large the North America market is, especially when it comes to luxury outbound travel. It is really -- it's probably -- and not on exact numbers, but probably North America alone contributes more to luxury travel than the rest of the world combined. So that is just the scale of that market. The other bit that we come across -- that we have started to realize is how large the travel adviser base is in North America and how large that opportunity is and how large some of the players are who are operating in this space. If you look at consortium like Virtuoso and Travel Leaders, they talk of north of -- because they aggregate travel, so they are not budget of record, but they aggregate travel demand to travel agencies. And both those report more than $25 billion each of GTV that flows through their networks, right? So -- and those are just 2. So just the size of the market is immense. For us, the core market is North America on the whole growing for us or not, right? That's really where we want to get to that if this is the market that we are operating in, which is that large, we should over and this is, look, I think we will be realistic. These are very developed markets, mature markets. They take time to break through. And you would say Europe, we've been trying for 5 years or 6 years before we reach where we did. But hopefully, not that long in North America, but several quarters through, if we are able to find enterprise level growth in North America, then that's a big win for us because what we know is that, that kind of top line growth in North America will drive a far larger bottom line in that market.

We take the next question from Mr. Prateek Kumar.

Congrats for great results. My question again is on investments. So of course, the company went through a heavy investment cycle for 2 years and it's now concluded. How should we understand in terms of investments? I mean, while you said that there is no rule there, probably how soon your investments benefit gets exhausted. But that should -- like for our modeling purpose, that should reflect in our peak EBITDA to gross profit at some stage. Like what is that EBITDA to gross profit you kind of see for a company on a total basis?

So I think, Prateek, 2 things I'll focus on. First is that the quantum of investments because the nature of investment in our business is an investment in the sales force, right, so which is really hiring people. So the quantum of investment as a percentage of your GP will continue to shrink even if you invest at the same level as before. And right now, we are not. But even if you were to invest at the same level as before, because we are on a higher GP rate, there is a higher cash generation happening in the business. The quantum of investment doesn't correlate with the size of the business, right? It will kind of remain the same while the GP grows. So that will fundamentally mean that even when the investment cycle comes back, we should still be able to continue to grow our margins. Now on where those margins can land, Prateek, is very hard to comment on because we don't want to give any guidance on that because several things are in play right now. One of those is that there is a whole thesis we still need to form on what does AI does to efficiencies, and we still the jury is still out on it. The second bit, Prateek, is that what happens in the Middle East in the medium to long run, right? If this is a crisis, which becomes something like Russia-Ukraine, then you will have to go back, look at it and say, look, we need to find other levers of growth and maybe there is an investment cycle because of it. The flip side is that if Middle East starts to normalize in the next couple of quarters, then we will be generating significantly more cash and hence, an investment can still be absorbed while continuing to grow the EBITDA margins. If you wanted to look at where steady state businesses which have scaled up, say, hotel beds or web travel kind of businesses, those businesses are kind of starting to normalize anywhere between 45% to 60% EBITDA margins, which we are not at all. So I just want to be very clear, we are not at all anchoring towards in any short to medium term. But platform-level dynamics should play out. And we should -- if we choose to optimize, there is a significant runway for improving those margins from where they are today.

Sure. You think you're not an [ environment ] and, of course, improvement in margin is great. You are now not too much focusing on margin versus growth. The question is actually flipped versus what we used to ask earlier. Yes, that's.

Sorry, Prateek, your voice broke. Yes, Prateek your voice broke I couldn't really figure out the question.

Yes, sorry. My question was -- so while we were -- we are like kind of encouraged with your margin improvement, what we have seen in the past 2 quarters, 3 quarters, but 2 quarters. But are we not like focusing too much on margin versus growth, right? We will be like kind of optimizing growth versus margin and incrementally focusing on growth, which is like upwards of 20% and plus margin expansion, whichever which is like kind of implication there?

Absolute Prateek. There is no change in that strategy.

Okay. Coming on to the AI question, which you mentioned earlier. So what is the CapEx and OpEx intensity in AI investments like Voya rollout? And where do they sit? And are there any measurable improvement in agent productivity from that?

Prateek, there are 3 broad initiatives happening right now. One is on CX productivity, second is on sales productivity and third is Voya, which is our AI itinerary tool. Voya remains very much experimental at this point in time. I mean we have seen a few bookings happen through it, but nothing that is going to impact your top line. Having said that, the CapEx on it is also very minimal right now, which is probably sitting in CapEx, but it is -- yes, it is in the intangibles, but it is not...

It's all in-house. It's all done through the tech team, which is all in-house team.

So -- and it's a lean team as is the more in AI native projects. So it is not impacting our cost structure in any way at this point, but it is creating optionality on the other side. CX is where we have actually seen significant improvement in productivity. The metric that we are trying to drive, and I don't have numbers for you today, but the metric we are obviously trying to drive is what percentage of GP do we spend on CX today and can that number start to come down because that again is a lever for margin expansion. There, we have made significant inroad. Some of it is actually translating, although we have not reported any of it as yet, but some of it is actually translating into efficiency gains on the P&L. But it's a journey. The other place where we are actually investing is creating on our in-house CRM, creating a very interesting AI layer, which allows us to start doing things which allow our sales teams to know which travel agencies to go to basis signals which we are collecting from across the enterprise, which are promising leads, which are as travel agency, which are avenues, which are healthy. So that's a project that is happening. The key there is that can that increase the number of active agents per key account manager. Very early days on it. This is like a launch that happened a few weeks ago, a couple of weeks ago. So I don't have any early results on it, and I can't even say that this is a successful project as yet. But we are very hopeful on this project, and there is a significant amount of engineering effort has gone into building this out.

Sure. The question is on your competition. How do you think competition would have done in markets like Asia Pac and Europe where you have done strongest post your investments?

Prateek, hard to say, but we have clearly taken share because it's hard to imagine that these markets could have grown at this level at all. In fact, they wouldn't have grown at all, but we have high double-digit growth. So we must have taken share. I believe some of our peers would be releasing or have released the results in the last couple of days. So that may give some indication, but we haven't studied as yet. But yes, we are clearly taking share because at this point in time, there isn't any organic growth in the market.

Next on your constant currency numbers. So great disclosures on every line item. Will you be like sort of giving this data every quarter from here on, like including region-wise, impact and all the data which you have given, which I think is like over disclosure, frankly, but would you be like kind of disclosing this in later quarters also?

Prateek, directionally, yes, and as Gaurav pointed out in the initial comments as well, that we had seen a wild fluctuation in this quarter, and that's the reason we wanted to transparently show the numbers in the constant currency so that we have the real picture of the numbers. Directionally, yes, we would tend to show the numbers in the coming quarters as well. Wherever it feels that it is over-disclosure, we can look at it and see whether that makes sense or not. Yeah, directionally, yes.

Prateek, I think there was a lot of compelling request for us to give a breakup. So the last 2 quarters, I think we've been giving. And I think that's something we will continue as well.

And last question, this hosting and bandwidth expense fell 14% this quarter. Any specific reason there?

Anyone want to take that?