Q4 2020 Startek Inc Earnings Call
Good afternoon, everyone and thank you for participating in today's conference call to discuss the Star Techs financial results for the fourth quarter and full year ended December 31 2020.
Joining us today are <unk> executive chairman and global CEO.
CEO I got roped sengupta, the company's CFO be cautious of the record and the company's President Rajiv Ahuja.
Following their remarks, we'll open the call for your questions.
Before we continue we would like to remind all participants that the discussion today may contain certain statements, which are forward looking in.
The nature of pursuant to the Safe Harbor provisions of the federal Securities laws.
These statements are based on information currently available to us and are subject to the various risks and uncertainties that could cause actual results to differ materially.
<unk> advises all of those listening to this call to review the latest 10-Q and 10.
10-K posted on its website for a summary of the risks and uncertainties Star Tech does not undertake the responsibility to update any forward looking statements.
Further the discussion today may include some non-GAAP measures in accordance with regulation G. The company has reconciled these amounts back to the closest GAAP.
GAAP based measurement.
The reconciliations can be found in the earnings release on the Investor section of their website.
I would like to remind everyone that a webcast replay of today's call will be available via the investors section of the company's website at Www Dot Star Tech Dot com.
Now I would like to turn the call over to Star text Executive Chairman and global CEO I grew up the Sengupta. Sir. Please proceed.
Thank you very much till M. Good afternoon, everyone and thank you all for joining.
As the close down 2020, we drove record results across nearly every key financial.
The metric during the fourth quarter.
In addition to generating solid growth and benefiting from seasonal strength within our existing client network. We maintained our keen organization wide focus on cost management during the quarter the.
These catalysts helped us drive both sequential and year.
Over a year of profitability improvements with the record performance on the gross.
Gross profit and adjusted EBITDA.
Our accomplishments this quarter and throughout 2020 is a testament to the diligent tireless work of our global teams.
Q4, typically serves as the high higher volume period for our business.
As we help our clients manage elevated customer demand around the holidays.
This holiday season served as a particularly high demand period for our e-commerce clients as of processed increased customer order volumes and facilitate more frequent customer service interactions. In addition, we experienced.
Drew bust volumes for clients in our health care and education verticals.
While the clients in these three verticals experienced strong tailwind straw of 2020.
Art.
The revamped technological capabilities and organization wide efficiency added even greater value to their experienced management capability.
The ability during this period.
This in turn opened up new lines of business for us during the quarter and into 2021, providing additional opportunities for bringing our more robust optimized suite of services to the market.
On a broader scale, we advanced our recovery from the midyear lows of.
The pandemic at a healthy pace as of today, approximately 98% of our prequel with the global work force is active and providing our usual high quality service for our clients and the customers for.
The to preserve our team's health and adhere to current pandemic related restrictions around the world.
We have about 55 per cent of the workforce working remotely and the other 43 per cent working out of brick and mortar campuses are started cloud omni channel platform has allowed us to seamlessly facilitate this hybrid work environment with the capabilities that enable the team members to work productively.
Really from any of the more device, while preserving the continuing tea and security of our customer interactions.
Rajiv will be on the call later to discuss our operational progress in further detail, but I'm extremely proud of how started has emerged as of last year's challenges as a stronger more efficient.
You shouldn't organization.
Started cloud has also served as the exciting catalyst for our renewed long term focus on advancing our digital initiative.
We anticipate the the hybrid remote work structure is here to stay for the long term and as such expanding of digital capabilities will help fuel our revenue growth.
And operating leverage going forward.
As we recently announced we have made a strategic minority investment in C. S. S Corp, and I T services and technology support company that provides mission critical AI automation analytics cloud and digital solutions.
C S of source.
Growth technology customers across five continents with the platform based service model that is well suited for optimizing the future of technology driven customer engagement.
As part of the evolving digital driven go to market strategy, we will work with CSS as a cyst organization to develop areas of collaborate.
Hi over the net.
The three to six months, primarily in three areas.
One develop a go to market strategy to leverage CSS platform based technology support services to our existing customers and develop new customer opportunities for these services to enhance complementary.
<unk> generation by creating new service offerings by leveraging our service delivery capabilities on the static cloud and the focused service offerings from CSS across AI automation analytics cloud and digital solutions.
And three develop cross sell opportunities at arm's length basis, where we can bring additional value.
The value to customers by leveraging the additional service offerings and enhanced footprint of the companies.
These are the early days and we will look to develop in defined areas of collaboration that allows starting N. C. S is to maintain the distinct identities and value proposition to customers, while being able to leverage each other in the.
<unk> and of dynamic ways.
I want to reiterate how proud I am of the progress we sustained throughout 2020 and of our team's incredible adaptability within the most challenging global conditions, we have ever faced.
Now for a more comprehensive overview of our fourth quarter and full year financial profile.
The practice I'll turn the call over to our new CFO because sort of accounts.
The Guy she brings 25 years of extensive finance experience just started having previously served as the CFO of IV of software and held financial leadership positions at the preliminary and epilepsy technologies, we are grateful.
I'm in for UMH common significant contribution during the past two years of CFO.
With that said the please join me in welcoming the cash too.
For the call is he joined started during an important juncture in our company's evolution the cash.
Thank you.
Full for them introduction of poop.
Oh, I'm equally excited and honored to lead the finance organization of static as the embark on the next phase of growth and digital expansion.
Jumping right into our results net revenue in Q4 increased to 170 415 million up seven 2% from Q.
For the wall and up slightly from 171 6 million in the year ago quarter.
The sequential and year over year of growth reflects elevated demand and seasonal strength within our existing client base.
On the constant currency basis, net revenue increased by $4 seven per cent compared to the year.
Three but the.
Gross profit for Q4 increased to put people on $9 million, which is up 34, 9% from Q3 and up 12% from $27 6 million in the year ago quarter.
Gross margin increased to 17, 7%, which is up 300.
The six points compared to 14, one one per cent in Q3, and up 160 basis points from $16 one per cent in the year ago quarter.
Similar to the top line, the sequential and year over year increases in gross profit and margin reflect strong growth within our client base and the greater revenue mix.
<unk> higher margin digital services.
The Q4 gross profit includes benefit from government grants of $2 7 million.
Selling general and administrative expenses for Q4 versus pinpoint for them and again compared to $14 9 million in Q3, but decreased relative to $19.
4 million in the year ago quarter.
As a percentage of revenue SG&A improved to 8.8 per cent compared to nine 1% in Q3, and 11, 3% in the year ago quarter, reflecting the continued benefits of cost reductions we have implemented over the last 12 months.
Net loss attributable to stock the shareholders for Q4 was $7 6 million or minus 19 cents, but share.
Compared to a net income of zero point for a million or one cent per share in Q3, and the loss of $5 3 million of minus.
This 14 cents per share in the year ago quarter.
Net loss in the fourth quarter of 2020 include $13 2 million goodwill impairment cost by the reduced business outlook in India, Australia, and South Africa, due to COVID-19 impact and devaluation of local currency.
Argentina.
Adjusted EBITDA in Q4 increased to $23 2 million up nearly 49% from Q3 and up 38, 2% compared to the year ago quarter.
As a percentage of revenue adjusted EBITDA increased to 13, 3% up.
The increased 70 basis points compared to nine 6% in Q3 and up 350 basis points.
Compared to nine 8% in the year ago quarter.
The increase was primarily driven by a word.
The aforementioned revenue growth margin expansion and cost reductions as well as incremental government of brand.
He received in certain regions of <unk>.
Adjusted for the incremental grant of adjusted EBITDA for the fourth quarter was $20 5 million.
From a balance sheet perspective at December 31st our cash interest ticked up cash was $50 6 million compared to $56 6 million at September.
The 32020.
With the decrease due to higher capital expenditure incurred in Q4.
Total debt of 30 close December 'twenty 'twenty remained flat at 136 million cash.
To September 32020.
Net debt at December 31, 2020 was 85 for.
September of the yen.
Compared to $79 4 million at September 32020.
We continue to remain comfortable with the liquidity position as it stands today and focus on prudently managing non essential expenses and other costs to preserve the optimal efficiency of the operations.
Now.
For me briefly review starting for full year 'twenty 'twenty performance.
Net revenue in 2020 was $642 million.
Two $657 9 million in 2019.
The overall decline was led by adverse forex movements, particularly in Argentina and India.
On the constant.
The currency basis, net revenue increased by 0.9% compared to 2019 the.
The COVID-19 induced impact on revenue of witnessed during Q1, and Q2 was offset by elevated seasonal volume in the second half of 2020.
Gross profit in 2020 was 18.
Once the nine 6 million compared to 110 for $9 million in 2019, and gross margin was 14% compared to $16, 9% in 2019.
Adjusted EBITDA in 2020 was 58 1 million compared to 52 per.
18 million in 2019.
This represents an increase of 11, 6%.
As a percentage of revenue adjusted EBITDA was nine 1% in 2020.
115 basis points compared to seven 9% in 2019.
While gross.
One one reduction was driven by higher costs relative to revenues in the geographies.
The persevered and impacted with COVID-19, the overall adjusted EBITDA increase was driven by our ongoing actions on cost reductions and continued focus on prudent cost management.
Net loss attributable to start the shareholders.
Profit in 2020 was $39 million.
Or minus 99 cents per share.
Compared to a net loss of $15 million or minus 39 cents per share in 2019.
Net loss in 2020 included $35 9 million goodwill impairment we recorded.
Most of the 'twenty.
As I mentioned before we have entered 2021 with the strong financial and operational foundation and have taken additional steps to advance of progress.
Subsequent to fourth quarter of wholly owned subsidiary C. S. P. Alpha holdings successfully completed the debt refinancing with the newly secured.
In 'twenty 185 million senior debt facility, which comprises of 165 billion.
Term loan and the $20 million revolving credit facility the.
The term loan bears a moratorium on principal repayment for 21 months and will amortize on a quarterly basis beginning in November of 'twenty 'twenty two.
This facility further expansion of our liquidity position and enables us to extend the maturities of our debt.
With the current flexibility of our balance sheet, we are well poised to not only support our ongoing operations, but also capitalize on strategic opportunities opportunities to drive long term accretive growth.
This concludes my prepared remarks, I will now turn the call over to Rajiv.
Rajeev over to you.
Okay.
Nature of the cash.
You reiterated the pain of Peru.
You mentioned at the beginning of the call.
<unk> made excellent progress for driving the organized.
The store issuances.
And more fully utilize them in optimizing our technology throughout 2020.
Of the cloud continued to play a key role in keeping our global workforce connected and highly productive and they're not the members are working from home.
Jose for cats.
We successfully implemented an ERP solution for one.
Of the largest e-commerce companies in India and implemented of social media suite.
For the global leader.
Nike hotbed in consumer electronics.
Continue to invest.
I didn't work developing new solutions and tools for our customers.
The next developed in in the house communication and collaboration tool.
Thanks, Chad.
You have also developed and off the call work.
Automation solution with the partner will drive further efficiencies and cost.
That's true.
In addition, our centralized or true Global Command center has been a crucial resource for keeping track of our customer experience touch points all across our network.
Being able to monitor all of the effectiveness of all of the World has allowed.
To ensure the best possible synergy and continuity of our operations and clients.
What's the cash we have given them without the hybrid and the work from home solutions.
That's helped us solidify our real estate for capacity planning for 'twenty, 'twenty, one and the going forward.
With us.
We are still working towards our long term target of having 30% of our global workforce.
Working remotely.
And the majority, 70% working in the brick and mortar campuses.
We will continue to look and monitor closely the needs.
For clients and any potential changes of lockdown status of all of the world.
The change of targeted ratio our timeline for achieving Inc. However, kings of certainly continuing to look back on the world as we hopefully so fast.
So far for June was increasingly expect seamless.
And the instantaneous service with fast response times and solutions that are highly tailored for their specific needs.
As such.
Recognize that our platform should not only provide these types of experiences.
The old.
And you can collect and act one of the takeout needed the right.
One set of capabilities even further.
It's the infrastructure Inc.
The areas like E I E.
Analytics.
We gained further insight into how the strength of the La Costa with Stephens, Inc.
So a true the entire customer lifecycle of the initial acquisition.
H.
Yes, I used the word.
Paperboard slowed down customer and client growth and the.
Allows us to continue attracting high growth high margin planes E D.
Tier solutions for the enterprise.
They're not looking for me the low cost provider for Lockheed.
Instead.
The first class provider.
Our premium first class provider, but the need income things of the world.
True.
We have just about emerged from the most challenging global operating environment, we have ever faced.
In the environment that was full of all of the committee uncertainty and change which is why I'm proud to say that the progress we have made over the past year has been nothing short of the marketable.
And the number.
The have just been announced.
This piece of the flight.
You have a much stronger and more resilient and this journey would not have been possible without the agility displayed by our global operating teams.
But one of the vaccine is out there and get all of the whole thing life starts heading.
Adding back the normal C. You have also love getting the week.
Yeah, just getting the stocking.
We have plenty of growth opportunities ahead, the capture in 2021 and beyond.
With that I'd now like Boston, all the back well group for his closing.
In your box.
The loop.
Thanks, Rajiv if there is one point to that 'twenty 'twenty has proved it is of the environment and risk free work in our cost of customer service take place are rapidly evolving.
This shifts operating through and beyond the unique pressures that the last year's pandemic related.
The challenges placed on our business and B P was around the world.
The sudden transition that we and many organizations have to make towards the remote.
The work second to diminish the level of visibility we had in our global operational performance, let alone the contingency of our services.
Of course client verticals.
He calls it yourself, but the businesses have had to quickly scale and strength in the infrastructure to not only facilitate remote and hybrid work for the teams, but also provide digital optionality for the customers and the COVID-19 restrictions on physical shopping and other transactions and service space.
The experiences.
As this pandemic restrictions gradually ease.
This trends towards digital led customer experiences will not slow and revert back to all the ways. We are proud to build such a dynamic and agile operational framework.
That allowed us to.
For Cvs.
The pandemic, but prouder still that we are making.
The investments necessary for expanding this foundation into an even more advanced and comprehensive suite of digital services.
The strength of our balance sheet and the many growth opportunities have placed us in a prime position to continue our operational momentum.
For 2021.
At this important inflection point of our company, we have tremendous flexibility to continue optimizing our services and making key investments in support of our long term profitable growth strategy.
So the limb we will now open the call for questions.
Sir as a reminder to ask a question you would need to press star one on your telephone to withdraw your question. Please press the pound key.
Please standby, while we compile the Q&A roster.
I show our first question comes from the line of Dave Koning from Baird. Please go ahead.
Yeah, Hey, guys, thanks, and nice job.
And I guess my first question I, just wonder about a couple of the.
Well it looks like one off items of the government Grant that you got if that if that's sustainable and then secondly, it looked like your Noncontrolling interest line the the negative.
Three of $5 million that implies really good profitability from that business. If that's sustainable so I guess the those two things just wondering about any sustainability of recurring nature of those two.
The gosh when you take that.
Yeah.
Yeah.
If there had been kind of get the second question, but on the first question.
The we do get certain government grants, but this time in Q4, we did get the additional incremental grant of about $2 $7 million that clearly is not sustainable on a long term basis.
I didn't follow the second question. Please can you repeat.
Oh, Yeah sure.
The second question of the Noncontrolling interest line below the below the income was 3.35 million sort of implies it seems to imply really good profitability within that the interest in and just wondering if that's sustainable yes.
Yeah that is that is sustainable.
Well into the future of of course, there's always.
Sure so that you'll always find that out of Q4.
Volumes of high yield so that drives higher profitability and revenue, but adjusted for that it is sustainable.
Okay. Good and then I guess my one other question on the interest expense now with the refi.
What how should we think about the interest expense on a quarterly basis or for.
As you know the basis going forward.
The C or you can see the gross debt of the company at eight a M.
Duke Levy with at $136 million and that continues to be at $136 million and the new refinancing that you've done the takes had crossed day to $185 million off.
Full year, the expect about $165 million to be used up right and the balance would be available for those for working capital needs. As we go forward, but broadly on the $165 million of overall interest rates will be linked to LIBOR. So to that extent in all of you would see an uptick in interest the expenses, but the yield will be very simple.
Gotcha, Okay, well, thanks, good job guys.
Thank you Anthony.
Thank you I show. Our next question comes from the line of.
From B Riley. Please go ahead.
Yeah, Hi, good afternoon. Thanks for thanks for taking my questions and congrats on the strong end of the year, it's really been impressive to see the business really turnaround from the trough.
Got you.
The year of 2028 of Tennessee, where you are now, but I mean in terms of the pace of business. I mean can you comment on kind of what you've seen exiting Q4, and thus far in the Q1 of the serious it seems like you are pretty confident in your growth prospects going forward.
Yeah, I think of.
I gave a very high level and Roger will cover a little bit more.
Clearly pandemic was something that everybody learned and just not us I mean, including the customers. They are also realized that this there could be a new normal and therefore, we attempted to do things the they were changing behaviors.
And clearly our was visible in terms of people unable to go the shops, and therefore E. Commerce took an uptake so all this put together the.
The plus the potential of talked of going back to normal life has induced in the added behavior of customers to engage in customers.
That always related activities like e-commerce and educational sectors. They showed some growth momentum. So overall, we feel that the there is the growth momentum ahead of us and therefore the.
We never realized that we will be able to accomplish this are looking at if you remember is that when we talked.
In Q2.
This was something which was almost unthinkable, but the I would say that do we work together the as a team we were very resilient.
Funded two situations at the very agile manner, and Tracey will cover of how our global Command center, but it's looking at things.
Things on a minute to minute the hourly basis and therefore, we took decisions and we moved ahead of the same time beacons of 10 preserved.
On the customer behavior side, the Rajiv would you like to make some comments.
Yeah.
Sure of Brook. Thanks.
Hey, Jack.
So if you remember you know.
One of the previous earnings calls we had discussed.
And just sort of went live in the midst of the pandemic as to what the future of where to look like and at that point of time, a number of I got the economics was saying that the it could either be a W.
Blue shape the company of.
These shape recovery of U shape for a company of any out of shape recovery.
Think of going to get a feel for what we saw was probably open the shape recovery.
With the news of the vaccine.
No.
Getting out of I think the sentiment improve.
Proved and as such some of the sector started running the clock. So so obviously the for the recipients of some of that that at the mine. The the contraction in demand that could be the experience across our Q2 and Q3, especially stop at the soccer teasing out.
And the slowly gradually that volume started picking up.
I also takes you back to work when it said in one of our previous earnings calls where there'll be had T broad.
Broad non trials that we had laid out within the organization.
Which was slash adapt.
<unk>.
While we continue the slash, we continued to adapt and be comfortable with the rebate.
And I think it's a combination of the dual that has led us for delivered a stellar Q4, and the and hopefully we'll be able to sustain that momentum as the moving through the quarters to come.
Understood. That's helpful. And then in terms of the gross margins I know you had a slight benefit for them from the government credit in this corner, but I mean, how how are you thinking about gross margins on an ongoing basis as you continue to manage that balance between growth and profitability.
Our group USA, Inc.
No you can take that.
Okay.
Yeah. That's right go ahead, you can take that Dave.
Sorry, Okay Yep.
I think the we continue to focus on the on our.
For the.
The indirect costs, we continue the manage our our labor anybody tightly.
As we had mentioned in all of the.
Friday of calls we are looking at the it already given up 10% of our Oh the Quebec.
Capacity and the N V would look like really country of the exam in the ways and means.
Are there any rationalize further.
The capacity that's the I've currently holding and the combination of all of these there'll be a whole thing do you think of it to be able to go live with the gross margin.
But the breadth of.
The effects of it.
Okay.
And then.
The two final one for me with your investment into the C. S. S Corp of I mean.
The I guess that'll be a two part question, but what will determine the ultimate decision of whether you'll take a majority stake or not at some point down the road and then just in relation to CSS as a.
The business model I mean can you give us a sense.
Just for their margin profile and their revenue streams I get the essentially you have more of a recurring revenue model with these the technology focused customers.
Yeah, So I'll take that up the C S of Scorpio.
For them for quite a long time, the they had a great company the primary.
Sense of Tech support for the technology based.
These companies a lot of the customers that are in the Silicon Valley and these are all growth companies in high growth companies. So that if it does are in high teens in terms of profiles.
And clearly we initially did not have the balance sheet to buy the CSS to be very honest.
Do we said that we would take a minority position because of what he does is it gives us the tech support capability and as you know that we have already mentioned.
The non spend that we have the ability to take a controlling stake of the company in the next two years. So we have kept of both options.
The first option was.
So that a we have a positioning the company and they become a sister company.
For the option two is that we have the ability to combine these two asset at some point in time of the next two years, but most importantly, I think of what it gives us is the ability to synergize each other's capabilities, especially in the tech support area.
Especially in the digital area, where we can work together rest of teams.
Understood well, thanks for taking my questions and congrats again on the really impressive progress you guys have made of exiting this year and the potential growth ahead.
Thanks, Ed.
Thank you.
Our next question comes from the line of Omar spent a lot of private Investor. Please go ahead.
Hey, guys how are you.
Uh huh.
Hi, Omar how are you there is any of them gratulation.
Congratulations what a great one of great turnaround one of great quarter.
Hum you guys, obviously, you've done almost be impossible. So of my my sincere congratulations to you.
Thank you.
I wanted to start with.
You know your your your margins progression and I wanted to see.
If you could.
The same to what extent would what would you say that margins were impacted.
By work force hire or retraining as agent of that return to in campus environments placed you know changes in programs or different processes because.
The the different you know the changes that were going on with Covid.
Covid in the different approaches.
See days the standard answer to this because each situation is different than the gross margin is a function of how do you.
Manage the efficiency of our program and.
Of all of you shouldn't see of the program is managed.
Based on several accounts and Rajiv can elaborate that on the little bit more but at the high level as you know.
We moved from the brick and mortar situation to at home situation and the atom situations. So obviously, we had some uptake on maybe better utilization.
The difference we did not have absenteeism, if the person said the D. S. I'm ready I mean, he's dead he's not absent.
But in the brick and mortar situation you designed the your operating metric of almost on a daily basis, and then you have people who didn't show up. So so those are some of the advantages we had.
So overall the margin.
Because he's a very complex subject, it's just not the one or two criteria based on that you can come up with forecast.
But yes, I mean, the overall the margins have definitely improved and the tanks to additional volumes and thanks to the.
The very large part of the workforce working from home.
Behavior, you have added to the advantages are.
And the basically given us an uptick on the margins a lot of people would you like to add any more points and color to this because there's no specific concern stuff for the.
Yeah, I think you kind of broadly summed it up a little but just to add.
So the Dore bars.
Just to qualify it further.
So Omar I think what happened was when the pandemic broke up I think we will leave it in the.
Since the formation of at that point of time because of weak the lift off of what the at home solution and we had spoken of.
Hello.
Okay.
Okay.
Alright.
The last strategy.
Okay.
I think Rajiv pardon me I think Rajiv line.
Uh huh.
She'll be joining momentarily.
Yeah.
Yeah.
Rajeev you May proceed.
Thank you.
My apologies of the call dropped the MRO.
[laughter].
Sure.
Yeah, sorry, so can I broke it may take a minute just to further qualify what I was saying.
Okay. So.
Sure.
Think of it I dropped off was of.
That are either in or defensive formation, we have lit up of work at home solution, what we the stranded.
The fed a lot of capacity that we were paying for.
And then what we did all.
Over the matter of time over the next few quarters was the release.
Approximately 10% of our global capacity, which translates into approximately 4500 seats, thereby offsetting some of those are the losses.
And then simultaneously as volume start picking up.
The greater amount of our work force came back.
On screen and I take you back to our waterproof said during his of his opening.
Opening remarks, whereby he gave you the split of the what are active work force looks like today versus the pre COVID-19.
Covid levels, we had.
98 per cent of our work force.
Australia is live and in production.
Split 55 per cent and 43 55 per cent being work at home and 43% being brick and mortar.
Which has helped us.
Uh huh.
Im sure that that the pick up that we just spoke about.
You know.
Resulting in us delivering the kind of numbers that the that's the cautiousness in the host a few minutes ago.
Okay. That's very helpful and maybe a quick follow up on that are you able to quantify for us the improvement achieved in terms of capacity utilization rates.
From pre Covid to now after setting you know the idle excess capacity you might think of around 10% of you had mentioned.
Yeah, So great question Omar so.
As as we see demand picking up you know our brick and mortar centers.
We are now making sure that they are ready willing enable to receive new volume that our that our sales team is in hot pursuit of.
As you know, we do not anticipate bringing it to a stage, where we won't have any see liberals seats that are left.
So any number that I can give you right now or the wording to the water seats that we have specifically of them up for for new businesses to be coming in and we are very hopeful of lesbian gay for.
The word.
With new business coming in we will have the capacity available.
Because of the last thing we wanted the right now is to give up the capacity and three months from now set about lighting up another altogether new facility. So so any number that I can give you right now it will probably not be truly indicative of of.
What the capacity utilization looks like because.
Cause of towards the beginning of the year it will probably be a misrepresentation because we have penciled in a certain number as growth across 2021.
And the large part of the scene set out now weakened or have moved away from the stranded bracket the.
Keeping them weakened.
So as to be able to the CPU revenue.
Okay got it okay.
On the I like the dropdown, so sorry about that yes.
Okay.
Terms of your India market I was wondering if you could talk about that for a minute you on all of this.
Supply.
My side, one of the status in terms of you know mass transit constrained and Knockdowns of as things have eased up a bit and then on the demand side you know I've read a couple of of articles and press releases that you know mentioned the over 2000 of people where hired during October for.
For for two.
To address the inquiries and demand and both N D. In English language and I also saw a recent article where Rajeev was quoted saying that a 2021 are expected to increase head count by three to 4000.
In the year. So I'm wondering maybe how much of that was for the India market and any any comments you can provide.
For that.
Sure.
And once again, I think I'd want to be careful of what I say, considering the Omar you're following the most of whatever M.
And getting published out there so thank.
For giving me that can advance warning of.
But you know going back to some of what I've been quoted on AR that was as the result of US acquiring and then there are a few logos. So we have started up.
Charter of the yard and a good note and the and we hope to continue.
The increase of our share of the wallet with these new clients typically of acquired on the other hand auto of operating deals our program management teams as well as our sales teams have done a phenomenal job in India are growing ex.
<unk> client relationships.
And the quieting new lines of businesses from existing clients and and that is why I put together some of all of that and said you know it.
The hiring approximately close to 4000 people.
You know very very soon.
Across largely the tier two and tier three cities.
And the NDS, you're right as you rightly pointed out are largely a domestic support which basically means in the in some of the other regional languages of stacking that exist in India.
Couple of the way the English language support also the number of lines of business.
Very good that's very helpful. Okay.
And I'll go to your question sorry Omar.
Your question about the mass transportation, the opening up and I know we've discussed that for the.
Prior calls a slowly gradually in the I started easing up on the on its restrictions and loss transfer.
Nation has the gradually like I said started improving as the result of which of our work force now finds it far more easier to coming to a brick and mortar centers and that was the challenge that we had called out in prior calls so so every boston quarter.
India is a.
Transport him vaccination is now out there.
I think India is probably the country that is vaccinated if not the most it's probably the second most number of people that have already been vaccinated. So so the sentiment is certainly improving and the and we hope to be riding on that way.
As we go to the next few quarters.
Very good very good okay.
Okay and then my final question I know you guys do.
Do not all for guidance and I was wondering you know you're you seem to be in the.
The better position you know liquidity wise.
We've lives you got great revenue diversification at this point.
The grape cost realignment our growth trajectory seems a scalable operation investment now in the yesterday, so I'm kind of wondering you know what.
What what will what do you think that will give you the confidence.
At some point to too many of you know me.
Go out on all of them, the little bit and and offer some some type of guy items in the future.
The C. We continue to the not.
Not provide guidance are as a matter of principle, even today are largely.
Because of we are still the working on several fronts and I think it is a it is good to.
To give thematic approach and and that's more important because end of the day, a we have articulated and from the very beginning that we will be of digitally led the company and and when we see that we want.
But you are on that so we have not only delivered.
At the back of pandemic of startup cloud opportunity that is now available in the market place for our customers to date for you.
We also went ahead and the diversified ourselves in terms of making a minority investment in a.
C S of scarp, which is into video advanced analytics, and AI and robotics. So so that's that's the kind of guidance that we'll be able to give in terms of numbers the pan out the depending on the cycles that you'll catch in terms of the early growth stage or the or.
The middle of the growth.
The exit or the tail end of the growth in the new growth.
So those are valuable send up it will not be wise for the management team to focus on that.
Of the management team is focused on I would say behavior and.
And belief and then you become so for question is the market.
Once the what is going to become but we will rather go and see how the become happens because of its it's at the back of belief and behavior. So that's what we as a team are focused on and the we are driving in the all of us together of driving towards those goals.
And if you do those first two things right, which is believing behave.
All of us become he's going to be.
And ultimate byproduct. So it's philosophical answer, but I think that's the best way that we feel comfortable in terms of driving putting our heads down and working towards the the context that is ahead of us.
Okay very good very good well.
Well, thank you very much for taking my questions.
And congratulations again and good luck in the future looks very bright.
Thank you.
Thank you Omar.
Yeah.
Yeah.
Yeah.
Yeah.
Kind of dilemma.
Yeah.
Hello.
Rajeev of you're able to hear me.
Yes, we can hear you Dylan are you there.
Yeah.
Yes, I am Sir.
I just wanted to check of them or any other questions queued up.
Yeah.
Okay.
Yeah.
Yeah.
Yeah.
And then.
Okay.
Yeah.
Okay.
The day Leonardi of dead.
Yeah.
Yeah.
That is the new back here me.
Okay, Yes, yes, we can I think for some for some strange reason, probably delay is not able to hear us.
Inherently Sir can you hear me if Dylan is okay.
Yes, we can now hear you Dylan just wanted to check of them or any other questions that for queued up no Sasha no additional.
Additional questions you May proceed with your closing remarks.
Okay. Thank you deliver very much and thank you all for joining US This afternoon and for your continued support of static I look forward to speaking with you next when we report on our first quarter results.
Ladies and gentlemen, thank you for attending today's conference call. This concludes the program you may all disconnect good day.
Thank you everyone.
Thank you everyone.
Thank you.
Yeah.
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