Q2 2021 Startek Inc Earnings Call
[music].
Good afternoon, everyone and thank you for participating in today's conference call to discuss <unk> financial results for the second quarter ended June 32000, and 'twenty, 1 and joining us today are <unk> executive Chairman and global CEO, Uproot and Gupta and the company's CFO cost directly.
Following their remarks, we'll open the call for your questions before we continue we'd like to remind all participants that the discussion today may contain certain statements, which are forward looking and nature 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 various risks and.
<unk> that could cause actual results to differ materially.
Star Tech advisors all of those listening to this call to review the latest 10-Q and 10-K posted on its website for a summary of these 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 based measurement.
The reconciliations can be found and the earnings release on the investors section of the 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 start tech Dot com.
Now I would like to turn the call over to Star, Texas, Executive Chairman and global CEO of groups and good day.
Thank you just to be good afternoon, everyone and thank you all for joining.
I'm very pleased with the results from this quarter as we continued to generate strong revenue and profitability growth demonstrating the resilience of our team.
And their operational foundation, our topline growth was driven by improvements across our key growth verticals, including significant contributions from the vaccine drives we help support throughout the United States underlying this promising trends across our verticals with a continued focus on careful cost mine.
And the spend as we further enhance both the cost and the operational efficiency for organization.
In addition to the vaccination deal wins and the U S. We also generated solid traction out of India and.
Vaccination rates improved and recovery from last quarter's COVID-19 outbreak continues to progress.
The recovery trends across all geographies helped drive the strong performance, we delivered across our verticals during the quarter to.
To provide some additional color on our growth by vertical and the high quality service and flexibility, we have demonstrative to our client base.
Has helped them navigate both macroeconomic and industry specific factors during the recovery from last year's pandemic related lows.
And these recoveries related tailwind have continued to support existing growth trends across certain verticals as restriction eased throughout Q2, including E Commerce media and cable business and financial services and local travel mean.
Meanwhile, even some of them for a long challenged verticals and began the gradual return to growth during the quarter.
For instance, our telecom segment revenues and began to increase both on a year over ear and sequential basis over a period of prolonged decline as did our brick and mortar retail and auto and by the segments for us.
And verticals that were most deeply affected by COVID-19 last year and remained challenged by pandemic related volatility such as Intercontinental travel and we're remaining closely attentive to changing health protocols and further develop and related to the Delta variant.
We will remain vigilant on these developments across all of our verticals and geographies as well as maintain a strong commitment to supportive and flexible partnerships.
Within our health care and education segment revenue growth was largely driven by COVID-19 assistance program be supported in the U S.
And the domestic vaccine rollouts progress across the country, we were able to leverage our platform expanded range of capabilities to facilitate greater vaccine access throughout U S communities nationwide.
And then a short timeframe, we were able to have thousands of agents ready and able to assist and answer U S patients questions.
Got it and vaccination and logistics as well as and facilitate a help hotline to make some of these answers readily available.
I'm very proud to leverage our scale and operational agility to support this important health initiative for United States across the U S and all of other geographies. We are committed to upholding the safety and health of not only our workforce, but also the broader communities in which for you I'll put it especially in such a critical time for.
Global Health.
This agreement is known as the indefinite duration indefinite quantity or idea IQ and based on the government's need for these services similar to many other government and PPO contracts given the bulk of the support was for initial vaccine rollout efforts with.
Currently do not anticipate this particular government program to continue into the second half of the year. That's at the comprehensive support we were able to provide positions us well for future extensive large scale government opportunities ones that we previously did not have the resources to support.
I will speak more to the flexibility and optimization of our platform a bit later in the call, but before I turn the call over to our CFO gosh I would like to provide some additional detail.
And on the cyber security attack, we experienced during Q2, which we have worked around the clock to remedy the cyber security threat awkward on June 30th and involved encryption of some of our systems. Many of our clients face noticed disruptions in certain regions, but other customers face disruptions and regions, where do we support are greater.
Concentration of agents working from home.
Several impacted clients maintain connectivity with our network and continued receiving our services others close to chose to temporarily suspend out access to the networks out of an abundance of caution.
We have since restored the security of our systems and networks and hence the way, we monitor and turn information security environment and implemented various network process improvements and close collaboration with leading external forensics and cyber security experts.
These steps help allow us to understand why the incident occurred and work to prevent similar incidents from occurring in the future.
As the incident awkward and the last day of the second quarter, we expect that the incident may impact our revenues for the second half of 2021.
Wherever our team's quick and comprehensive response gives me confidence and our operational flexibility and their focus on bolstering the strength of our platform.
And the whole I'm very proud of our team's adaptability and driving a recovery from both the district and the broader lows of the pandemic last year.
In addition, we have diligently maintained a strong focus on for deleveraging and enhancing the comprehensive capabilities of our platform to provide best in class client support.
And I discuss these efforts further I'd like to turn the call over to our CFO the cautious to walk you through our second quarter financials performance in greater detail the gosh.
Yeah.
Yeah.
Thank you and.
Good evening, everyone and thank you for joining the call.
You cant predict for almost a.
Across our verticals during the quarter.
And then Inc.
The reports for all.
For our key financial metrics.
And starting on the topline growth.
Revenue in quarter, 2 increased 33% to 189 billion.
2.1 to $2.2.
And then in the year ago quarter.
On a constant currency basis net debt.
And increased by 33, 7% compared to a year ago.
Yeah.
And with less sustained performance across our key growth.
Including significant contribution from the U S government's COVID-19 assistance contract.
Other who mentioned it.
Correct.
The U S government programs will continue into the second half of 'twenty 'twenty 1.
Made it work and some sequential softness on the top line and possibly.
Gross profit increased 55% to $24.6 million compared to $15.8 million and the year ago quarter.
Last month, and increased 190 basis points and put Inc.
Compared to 11, 1% and they get a good quarter.
Similar to our top line they get over the other ingredients and gross profit and margin.
Net strong growth across okay.
Okay.
Selling general and administrative SG&A per share expenses.
<unk> expenses for Q2 decreased to $12.3 million compared to $14.6 million and the year ago quarter.
As a percentage of revenue F G and H improved to $6.5 per cent, compared 2 and 3% and the year ago quarter.
This reflects operating leverage on the back of the higher net revenue growth it can take and given the quarter.
We believe our edge.
G&A costs in absolute terms and watching it and treating them with them.
And the scandal client facing organization.
If anybody picked the cybersecurity.
And earlier.
We expect to and cut costs when you take away from today.
And can you walk through the immediate situation and.
Incremental investments to enhance the overall security of.
Information security environment.
We are confident.
Isolated pik income.
Inc, and eradicate it.
Net income attributable to static and shareholders for Q2.
<unk> significantly to $66.90 day off 17 cents per share and pay.
For 2 of net loss attributable to stock share a little bit of iPhone 4 million or negative <unk> 14 per share and the year ago quarter.
The increase also reflects a more normalized effective tax rate there and possible.
And with no 1 time exceptional costs and public during the cycle.
Adjusted EBITDA in Q2 increased significantly to $19.6 million compared to $8.8 million and the year ago quarter.
As a percentage of revenue adjusted EBITDA increased 10, 4%, which was up for.
20 basis points compared to 6.2% and the year ago quarter.
The increase was primarily driven by a robust revenue growth and subdued comps last year.
While we are very pleased to have delivered and ticketing quarters of double digit adjusted EBITDA margins.
And being driven by some 1 off events and both at the 1 and profit.
We continue to receive grant and come off coupon 5 million and second quarter.
I think with hips and looked at in the past few quarters.
We anticipate some other income to continue into the third quarter.
From a balance sheet perspective of June 32021.
Cash interest ticket gas total.
$54.1 million from.
Total $64.6 million at March 31, and 2021 with.
With the decrease due to <unk>.
Receivables related to the revenue growth and vacate during the second quarter.
While this led to a negative cash flow from operation for the second quarter. This has already been normalized and the first few weeks of the third quarter.
Total debt at June 30, 2021 was $173.9 million compared to 172.8 million debt at March 31, 'twenty 'twenty 1.
Net debt.
At June 32021.
Yeah.
$109.8 million compared to 1 or $8.1 million at March 31, 'twenty 'twenty 1.
Following last quarter's refinancing net leverage on a trailing 12 month basis.
And needs to remain well and it works.
As we continue into the second half of 2021 we remain comfortable with our liquidity position as it stands today and are well positioned to start planning for requisite investments and key market facing growth initiatives and <unk>.
Trailing debt to continue advancing our capabilities and the most cost effective manner possible.
As we discussed the other.
Our network and security and design and they make all the necessary investments improved network security for both our clients and employees.
He will also be and making investments and that Ikea and Brooklyn market strategy.
Including our sales capabilities to further strengthen our foundation for the remainder of 2021 and beyond.
This concludes my prepared remarks, I will now turn the call.
Total debt.
Okay.
Yes.
Yeah.
Thank you for gosh before we open up the call for questions I'd like to spend some time reviewing our industry recognition that our platform optimization initiatives have garnered in addition to providing further detail on this initiative and other core growth drivers for the second half of the year.
Since implementing started cloud at the height of the pandemic last year, we have leveraged this level of innovation and flexibility to continue propelling our growth.
Across our verticals digital and cloud based solutions have become essential in today's remote and hybrid work environment.
And not only facilitate these more flexible employment and frameworks, but also enable scale and efficiency for instance, they can drive rapid execution of highly complex transactions and more effective data storage and it back up and information services group reports that Q2 spending and cloud based services growth.
The record levels at a time, where the regions overall spending on it and business services already outpaced the U S for the first time in a quarter.
<unk> capabilities are a growing trend in our core geographies and and necessity in our industry and we will continue building out our already comprehensive capabilities and this area.
Automation represents another set of services that we're working to optimize being able to seamlessly organized back and information and streamline front and support will enable organizations to service more customers and better allocate their costs and personnel subsea.
Subsequent to the quarter, we officially announced our collaboration with automation anywhere, which will allow us to implement AI powered robotic process automation and our RP capabilities across our customers' experience value chain.
[noise] Minder these capabilities enabled us to identify automation opportunities and build robust.
Customer experience or CX solutions, accelerating efficiency and customer cycle lifetime value.
On a client and enhanced automation features help organizations to streamline their operations, taking the time and focus away from repetitive tasks. So that they can prioritize business critical projects and.
As an example for a large e-commerce retailer, our automation deployment and a vital process that deals with sellers and their platform right.
And he was the turnaround time by over 80%. Additionally, and an ongoing deployment at a global leader in background and verification. Our automation solution has projected and over 35 per cent reduction and full time equivalents and applied as we develop these features and strengthen our innovation advantage, we look forward to further.
Progressing this partnerships and further supporting our platforms automation capabilities.
As a body and talk for today's call I'd like to spend some time reviewing our key growth drivers as we progress into the second half of the year.
Start with a quick overview of our organic growth drivers and then move into our margin expansion levers and inorganic growth opportunities.
In terms of our organic growth, we plan to leverage our drawing started cloud automation and RP and technology innovations.
Differentiate and expand our services with both new and existing clients.
We are operating within a dynamic global environment made more so by rapidly evolving macroeconomic conditions surrounding the pandemic and recovery trends.
Against this backdrop, we will continue working to increase our wallet share with large global clients and targeting high growth verticals, such as E Commerce, healthcare and education business and financial services under GAAP.
Within these and potentially new client market, having 46 delivery campuses across 13 countries gives us a robust geography footprint to offer right shoring and capabilities and other solutions to make our clients' organizational processes more efficient and cost effective we are continuing to prioritize high growth high margin.
Lines, but now with greater resources to target larger scale opportunities such as the COVID-19 assistance U S government contract we discussed earlier.
More specifically on our global capacity. This is something we have already worked to optimize during the pandemic and shifts to work from home and hybrid models become more sustainable and widely accepted today as we stated last quarter. We continue to view the long term proportion of agents, we have on campus versus agents, who work for them.
Totally other.
75 per cent and 25% split respectively.
While we still have limited visibility on what we can reach the when we can reach these numbers started cloud has bolstered our ability to optimize these capacity, allowing agents to provide our proven high quality of service and our relatively asset light manner.
And this in turn benefits, our SG&A and margin expansion efforts, giving us greater bandwidth to reinvest in our sales engine and reengineer, our processes to provide greater value scale and flexibility.
Finally, we have and inorganic growth lever in our relationship with the CSS GARP.
Although it is early days this partnership will play a pivotal role in adding value and scale to our growth strategy and is currently tracking ahead of plan as we developed this relationship. We can also be like even greater value from our other strategic collaborations such as automation anywhere and other potential RP and digital.
And social media partnerships.
We have demonstrative significant adaptability and innovation to get to where we ought to day since the outset of the pandemic last year, we have moved quickly to protect our workforce preserve our operational efficiency and broaden the reach and capabilities of our platform to facilitate seamless digital experiences.
And once that optimally served for both our agents and our customers.
These actions remain at the core of where we are going as they focus on balancing our growth investments with sustained careful cost management.
I'm very proud of the operational and financial progress we have achieved thus far and believe we are well positioned to continue strengthening our organizational efficiency and optimizing our platform.
Abigail we will now open the call for questions.
Yeah.
And ladies and gentlemen at this time, if you would like to ask a question and you will need to press star 1 on your telephone.
And maybe a question for exit bound.
And again to ask a question you will need to press star 1 on your policy on <unk>.
And by the other compile the Q&A roster.
Yeah.
And now.
Our first question comes from the line of Jackie and minutes.
B Riley Securities. Your line is now open.
Hey, everyone. Thanks for taking my questions and congrats on the strong results here in Q2.
Can you start off by just quantifying and.
And how much of the upside that you saw and health care vertical was centered around the COVID-19 and vaccination efforts.
Oh Gosh would you like for taking that question.
Yeah, I can take that Oh, hi Tech.
So yeah like I said net.
Commentary.
This was the tickets for the U S government a drive on the vaccination.
So we generated about $24 million of revenue in quarter.
Other tool, which is unlikely to continue.
And the second half a day, yet given that the program.
Successfully completed.
Understood that's helpful and.
And as that business related to the federal government is that lower margin for for your overall business compared to your other services I'm just trying to get a sense of.
And what were some other drivers of kind of the sequential decline that we saw and gross margin.
And in fact, I would say, though it is not margin dilutive this business for that.
As you can imagine a credit and it does reflect our average margins and they got the EBITDA level like.
However, the factoring into this program was a somewhat temporary in nature and so.
And both on revenue and margin front in Pakistan, how they vote for asking.
For this program and will continue but it is certainly not much in Asia.
Understood and in terms of the telecom vertical I mean, nice to see that and return to growth on both a year over year and and sequential basis.
What is the expectation for that moving forward.
And something that can be a consistent grower or how are you thinking about your strategy and that vertical.
I think that that guys. Thanks, a lot for for this call and up and I appreciate you're supporting and covering us.
So basically we see that the and this has been a phenomena that we see globally that are telecom has suddenly become a very important driving force and the lives of people.
Which means that people are working remotely or using the telecom network more frequently be data or beat voice and.
In an era, where a significant part of the work is happening in such areas as consumers.
Our debt using this devices and this part of their spend significantly and therefore, it is resulting into higher volumes and therefore hard consumers are seeking support. So that's probably the reason that we have seen over the last I would say a few months and the telecom sector. So.
This is going to be potentially I believe could be a trend.
And in the light of our.
Strategy, all for having a hybrid workforce for a large number of people who can operate from home and the.
On campus work will probably reduce and therefore consumers will also spend a lot of time.
And on their phone or on the.
The data devices and therefore, it will lead to additional engagements sold so that's that's the trend that we're seeing.
Understood and the other thing that I also wanted to let you know Zac is that are we on 1 very large telecom contract and South Africa. So telecom is coming back and that is potentially about $100 million off for.
Total contract value over a 5 year period. So so that's that's exciting.
And that's and that's great to hear.
That's on the on the large win.
And as far as the cybersecurity incident, and I mean can you speak to any sort of impacts and that you've seen with client relationships or specific regions I'm just trying to.
Get a sense of how youre thinking about the potential impact as we go into the coming quarters with the fallout from the incident.
See I think today, if you'd like I think.
For security Yeah. Please go ahead the regard please.
Please go ahead.
Okay.
Saudi of course, so Zach.
So is that you know I mean this incident itself occurred on.
George will be highly useful and the impact of that in the quarter too right.
And and recycled incidents as well, even though you don't have various damage and site.
And and.
As we get into other team, we do expect that the incident itself it caused us to intercept Boston and stabilize the even right.
As we speak that you've been just completely profit and the network is totally secure.
However, we will incur from cost to 1 stabilize.
And the incident free.
We also have appointed number of exports and for in 16 and understand what really happened and what the cautionary measures. We should take as we go forward. So I do expect that to go over the next few.
A few months and quarters EBITDA.
And invest.
A lot more in the interim.
And they're liking and take it again, both on the Opex and Capex Fund and you can have a better sense of debt when we speak to you and politics free right.
Oh.
And I want to comment though on.
And I think the.
Yeah, that's correct I mean that if you look at today and up and.
A very large part of a client that we work from the client environment. So to a large extent do not hold a lot of clients information within our ecosystem.
So whenever a kind of oh and what about the attack had happened and basically you had.
And had some challenges with some of them for and internal systems, but we recovered them very effectively and today. We are secure and we are doing all of that is required.
Both at the device level control as well as other parimutuel level control for any future threats.
Understood. That's helpful and just final question for me.
And any update you can provide around the relationship with CSS Corp, and it sounds like that's progressing ahead of schedule and I'm just curious as to how that is potentially impacting your go to market strategy and and how your solution portfolio evolves over time.
Oh, absolutely I think that I think are weird basically partnering at the front end, which I mentioned and the last quarter.
If you if you understand and see us as does a lot of tech support work. So that is a kind of avoid area that we never had that.
Hyper growth organizations and there they are growing significantly ahead and being a part of a tech support company the intrinsically bill, bringing a lot of expertise and.
In such areas and some of the customers for whom we do the kind of consumer experience work. They also have to support the kind of buckets and share of wallets. So that's where we have joined together with CSF here for build a team together to work out in some common opportunities, where we bring and the value of CSS and at the same.
Times here says also brings a the kind of value that we bring on the consumer experience site for non tech support and so therefore, there is a very good I would say synergy that we have been able to develop at the front end and we will continue to do that.
Understood well, thanks again for taking my questions and congrats on the strong results.
Thanks Zack.
Thank you. Our next question comes from the lineup for Robbie Bamberger with Baird. Your line is now open.
Yeah. Thanks for taking my question, maybe just looking at the gross margins.
You know it was a little bit weaker than what we would've expected given but really nice revenue acceleration I guess, what was the cause for the 16% sequential revenue acceleration, but about 210 basis points of sequential gross margin compression and so I guess and the government assistant program wasn't coming on at low margins.
What caused maybe the sequential margin compression.
Yeah, I can take debt Oh right share right.
Right I mean, the government contract itself.
They didn't dilute our margins.
That much but it's a question and if we don't make sure revenue that we generate across various verticals and various geographies right.
We saw you know injectable strongly as well.
And that would be impacted but on the gross margin.
But overall you know if you look at other.
The general.
General trend in terms of luxury for quarters, you've seen that your bus market and is fairly stable.
Except for that sometimes it gets skewed and that has a impact on our.
Gross margins, but overall I would say that you know the bps now coming out of the pandemic over the last 3.4 quarters.
The way the growth is coming back and and the margin appears to be fairly stable and and the upward trajectory.
Okay. That's great. Thank you for that and maybe just going back to the government U S. Government program is there any 1 off costs.
Of winding down that program since and involved.
Thousands of agents as you said or is it.
And B, not you know margin diluted coming off and the back half.
Yes. So there is no 1 off for a cost that is there too and on the program right.
Like I mentioned that he was commenting.
He got program, but doesn't that commitment and they can find zone quite easily and so there.
And the cost that we already taken by the price contracts. So that's already incurred in Q2 as we executed this project and as he went on the program there'll be no extra cost for us so that should not be margin dilutive for us.
And the subsequent half of the year.
Okay.
Okay, Great and then maybe just thinking about the grants and the first 2 quarters had some some grant impact how.
And how much do you expect I guess and in Q3 and Q4 going forward from from the grants.
Yeah. Good question and this is hard for me to predict and then you have.
And any potential to try and do it the last 2.3 quarters.
I do expect some grant income to come in Q3, I'm not sure about Q4.
But it's a lot yes.
Yes, I guess, 2 and half million dollars youre, seeing and Q2, but it will not be as Louis and expecting anywhere between millions and millions of the hospital and Q3, but again this is early and predictable.
And is something that I want to underscore.
Yes that makes sense and maybe just last question on work from home I guess, what percentage of your work force is currently and a work from home environment and last quarter. You noted about 25 per cent of employees can work from home over the long term.
And this 25% and 75 per cent split and the office still makes sense over time and any cost efficiencies from doing this.
Oh, it's about 70% day towards between 70% to 75% is very dynamic and nature, depending on for the situation is and as you know we're operating in various countries, we operate and countries, which are still struggling through the whole vaccination program and the initiatives are.
And we are seeing a lot of.
Variance and searches that keeps on coming and going so it's really dynamic and volatile, but our guesstimate. If I may use that word but continues to remain within the 75 to 95 range.
So so that probably will continue as we speak.
Okay, great and any cost efficiencies over time from being in that range relative to normal.
No.
Yeah pretty much I would say at a if you look at today I mean, the we believe that great purpose per cent of the workforce will remain at home for 2 reasons..1 is it gives us a huge amount of flexibility because what you do is you are not aligned to a specific center. So you kind of have a flexible work force that you can.
And have access to when you're working from home because earlier and if you just rewind ourselves 2 years and anti workforce was centered around the center, where we are and the neighborhood, let's say a 20 mile or a total of 30 miles and 40 miles radios, where people could driving and works, but with this 25% workforce, which is now happening.
From work from home is not constrained to that specific geography. So we can tap into a very large labor pool across the globe and it's just not a U S phenomena. It's it's they're almost all of our other countries that we operate so so that's a very interesting stuff that the clients are liking our they're finding a lot of flexibility.
And at the back of that we're also evaluating a lot of infrastructure cost and a lot of.
Centers of capacity is due to this heightened at homework. So many clients who are conservative and nature, who would like to come back and ensure that the stuff work from.
Kind of controls premises we.
We have kind of opened up additional capacity for the future growth that we might be required for on campus work. So it kind of work both ways I, just kind of beneficial and and it allows us to have the flexibility of growth, which is a kind of adding finite capacity fit for work from home at the same time do you have and ability.
For accessing some of the week and capacities that tap and Len vacant because of this work from home.
Issues that have come up and half.
Customers, who would like to do a lot of interim ice work.
Yeah.
Makes sense. Thank you very much.
Thank you.
And again, if you would like to ask a question. Please press Star then the number 1 and your telephone keypad.
Our next question is from Alex.
Your line is now open.
Yes, Hi, how are you.
Hey, Omar how are you.
Good. Thank you great quarter guys are amazing.
I never expected that.
And I in terms of the.
The cyber threat.
And wondering if.
Would there be any a relief in terms of insurance policy against these risks that you guys maintain.
Yeah.
Yeah.
So I can take that Oh, hi, Omar.
What do you see other call. So yeah. So we do have a very comprehensive cyber security and policy in place and.
And there are some foresight and not thinking and fact that last year.
And in the policy and for.
<unk> increased coverage is good right.
So a lot of other costs that it won't be because this will stipulate that you and I think it'll be largely covered by the insurance policy right. However, having said that you know through this incident.
And a complete deep dive for impact IP ecosystem, and the company right and I think that you will need to set and gaps that we have I think I can do.
And could I can do.
And therefore, you have to pay to make certain investments total opex and Capex and then a backbone and should give us lot of confidence and give us.
Customers and prospects confidence, so I expect debt cost to come into us and them overtime, but the cost of managing and talking to the incident itself largely covered by the insurance policy I suppose it's always subject to deductibles that we havent, obviously, but beyond that I think we'll be fine.
Okay. Good.
Helpful and obviously I mean, you guys continue to do and an amazing job in terms of SG&A line. So theres, obviously, some some leverage their debt and.
And you can invest it back into the security and the cyber security and the business.
That's right.
I think having said that Omar.
Also as you know.
Having plans to invest.
Invest a bit on our banking organization. So you wouldn't see that pilot and is largely stable.
Could be slight uptick on that number over the next couple of quarters.
Okay fair enough.
Yeah.
So putting aside the amazing growth, there and and health care and and this despite Q2.
And historically, the lowest call volume quarter.
You still showed revenue growth you know, even if you take out that that piece.
So.
And <unk>.
Is that evidence that the new clients and new programs continuing to grow for the company.
Yeah.
Yeah, I think it is a combination of both as you know and this business I think what happens is that a large amount of growth comes from your existing clients because they grow with you and they have larger volumes. They have new lines of business that gets up and dump. They also go through the innovation cycles and they offer new products to our cash.
And so so that's that's kind of.
Something a phenomenon, which is really generic and the paper industry.
The other thing that I wanted to bring is that India has been doing extraordinarily well on the e-commerce sector and up and some other sectors are very well coming out of the pandemic and there is and added force.
So those are kind of coming very handy with some of the existing client at the same time, our new customers are also getting onboard it I just mention about Darwin and South Africa and of course. This this door it's temporary in nature.
Work that we did for the U S vaccine program.
Basically testifies that we have the agility to scale up whenever that is big and called debt comes for growth. So that was a very good test for our capacity and capability.
And therefore.
And I clearly believe that there will be such growth coming up, especially in the health care and the Edo take and the education sector in retail.
So these are also coming back relative so so overall I would say that our customer experience is continuing to be what.
What I really popularly called laser lights on business, it's a it's a non discretionary spend.
And if you do it right and if you manage and be the custodian of the consumer experience.
They will continue to reward you with additional business growth for both from existing clients as well as from the new opportunities that we are seeking.
Okay very good.
And then and now.
You brought up India, and and it seem to me that the market. Some fears concerning how you would perform and India during Q2.
And maybe it seems like those those fears were grocery misplaced.
Could you talk about what worked there for you and and explain what the market could be misunderstanding in terms of how you are positioned.
And India.
She did it 2 parts if you look at India as a geography and 1 is what I call. It citizen and serving citizens, which is the domestic growth.
And so therefore that is something that is has seen a momentum, especially and during the pandemic at all with the E. Commerce companies. So that's 1 which is a which has definitely given us a lot of growth. The second thing. If you look at India is that they are also offshore destination for some of our clients. So some of them.
Growth.
Which was hampered.
Which is U S bound with a recovery I mean, they came back and therefore that has led to an additional growth that is coming back to India.
So therefore the price.
I'd say that our India was prepared and we were prepared especially the first wave gave us such a big George to us, especially with Lockdowns and others that additional preparedness debt. The resilience has allowed us to basically navigate the second wave for and a very effective manner.
Firstly, we were struggling to figure out how do we do work and everybody got stranded in their homes, they could not come and show up.
And there was a heroic work that was done by other and talking to basically move assets into the homes of people, even though it's not that easy to do that and India. Its not.
As developed as you go.
A few miles or few tens of miles for hundreds of miles. So so we did all of those work and that that capacity and that capability has now allowed us to be resilient. So we navigated the second.
I would say wave of constrains of Lockdowns and others are very effectively so that is something I would say it was probably not baked in and understanding and planning for people who are looking at India from outside.
Okay Doug.
Very helpful.
And even also and either have the range of ideas coming I mean, and India I feel you'll observe that the latest spread off lot of ipos of Hyperscale companies.
I mean, some of them and announce time and Theyre, all coming back up into the marketplace and they are growing significantly so that momentum is also helping us.
Okay. Okay.
Finally, I just had a question regarding.
Your performance and.
Right now looking at.
Trailing 12 months, not even and even in the next 12 months, you know, you're very close to achieving $80 million and EBITDA.
And there seems to be a disconnect between the stock price and the company's performance over the past year and future prospects. What's your what's your small open market purchases of stock in June and a 10.
And to highlight that disconnect.
If you could share your views on that subject.
Uh huh.
That open market was a personal by I personally believe Ah and this company I believe that.
And if you if you are talking of my personal day buy in the open market debt is that is that the ones that youre talking off yes, yes, Sir.
Yeah. So this was.
As you know and.
Being the being at the heart of the company and looking at the growth I believe that debt.
And there is value and the company and therefore I wanted to buy the shares of the company.
However, the how the market behaves and how it works.
No control I will not be able to comment it's beyond my control, but internally, we had really very bullish in the sense that the stock price probably does not reflect what it should reflect so I in my and my own capacity personal capacity whatever I could do I wanted to to make sure that I have a piece of that upcoming growth.
Which I'm sure will come someday.
[laughter], Okay. Thank you very much guys and congratulations and a wonderful wonderful quarter.
Thank you Omar Thank you. Thank you Omar.
Thank you and the skin.
And for a question and answer session I would now like to turn the call back over to Mr thing and Sam.
Please proceed.
Thank you Abigail for conducting day sessions and thank you everybody for listening to us for patiently and thank you all for joining US. This afternoon for your continued support for static I look forward to speaking with you and next when we report our third quarter results.
Thanks.
Thank you ladies and gentlemen, you may now disconnect.
Thank you everyone.
For now.
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