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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
Good day, ladies and gentlemen. I'm Shelvia, the moderator of this call. Thank you for standing by, and welcome to Nuclear Software Quarterly Earnings Conference Call. [Operator Instructions] I would now like to hand over the conference to Swati Ahuja. Over to you, Swati.
Thanks, Shelvia. Good afternoon, everyone. This is Swati from Investor Relations team at Nucleus Software. A very warm welcome to all of you for this Nucleus Software earnings conference call for the quarter and year ended March 31, 2023. For discussion, we have here from the management team, Mr. Vishnu Dusad, our Managing Director; Mr. Parag Bhise, CEO and Executive Director; Mr. Anurag Mantri, CFO and Executive Director; Dr. Ritika Dusad, Executive Director and Chief Innovative Officer; Mr. Brajesh Khandelwal, Vice President; Mr. Ashish Khanna, Chief of Staff and Head of Marketing; Mr. Tapan Jayaswal, Financial Controller. As you all are aware, Nucleus Software does not provide any specific revenue earning guidance. Anything which is said during this call, which may reflect our outlook for the future or which may be construed as the forward-looking statements must be reviewed in conjunction with the risk that the company faces. An audio and transcript of this call will be shortly available on the Investors section of our website, www.nucleussoftware.com. With this, we are now ready to begin with the opening comments on the performance of the company. And post that, we would be available for a question-and-answer session. With this, I will now pass it over to Vishnu, sir. Over to you, sir.
Thanks, Swati, and a very warm welcome to all of you for joining us this very important conference call. I'm delighted to let you know about a very exciting year that we've had and this has been possible because we have 200-plus customers across 50 countries and we are taking collective item coming from them and 10,000 years of domain expertise within Nucleus Software to pour into building the products that we have. We are learning how to roll out our products in the market smoother and faster for delivering this top leadership in this space or the 3 decades in addition to the customer centricity we are known for. The results have been possible essentially because of this long-term focus that we've had. And we do hope that you will continue to appreciate this strong focus on long term and corporate governance that we have had. With those words, I would now like to pass on to Parag.
Thank you so much, Vishnu. This is Parag here. Good afternoon, everyone, and I welcome you to the investor call for Q4 and year ending FY '23. As regards to this quarter, it has gone as per our expectations, both in terms of financials as well as in terms of attrition on an area that we have been talking about and monitoring very closely. Also, as we have been updating a few more of our AMC contract revisions have closed in this quarter and that is reflecting in our financials. This, of course, has been possible due to the entire efforts of our team and leaders who have been focused on it. I do wish to reiterate that there is a one-time impact in this because some of our contracts did get closer to the end of the quarter and the year. So please keep that in mind. We continue to work on various improvements that include improvements on engineering side, improvements on project management side so that we are able to conclude more and more implementations in shorter times going forward. That's about it for me right now.
Tapan, sir, we request you to put some light on financial numbers now.
Hello. Good afternoon. Swati, am I audible?
Yes, you're audible. Please go ahead.
Highlights from financials are our consolidated revenue for the quarter is at INR 206.2 crores against at 69.3 crores quarter-on-quarter, INR 53 crores year-on-year. For the year, it is INR 634.5 crore against INR 497.2 crores. Overall revenue in foreign currency, including India rupees revenue is USD 25.2 million for the quarter, USD 21 million -- USD 20.6 million one year. For the year, it is USD 79.7 million against USD 67.1 million for the previous year. revenue for the quarter is at INR 179.6 crores against INR 143 crores quarter-on-quarter, INR crores year-on-year. For the year, it is INR 536.9 crores against INR 411.7 crores for the previous year. Revenue from projects and services for the quarter is at INR 26.6 crores against INR 26.3 crores quarter-on-quarter and INR 23.4 crores year-on-year. For the year, it is INR 97.5 crores against INR 85.5 crores for the previous year. For expenses, cost of delivery including cost of product development for the quarter is 51.9% of revenue, 59.9% of revenue quarter-on-quarter, 21.2% of revenue year-on-year. Two terms, this is INR 106.9 crores against INR 101.4 crores quarter-on-quarter, INR 108.9 crores year-on-year. The year INR 405.3 crores for the previous year, revenue quarter-on-quarter one year. Two terms, this is INR 4.6 crores against INR 7 crores quarter-on-quarter and INR 5.4 crores in the year. For the year, it is INR 21.5 crores against INR 20.2 crores for the previous year. For general and administration expenses for the quarter is 5.9% of revenue, 7.8% of revenue quarter-on-quarter and terms, this is INR 12.2 crores against...
Tapan, sir, your voice is breaking. Sorry to interrupt, your voice is breaking.
...expenses -- is it okay now?
Yes. Yes, please continue.
Quarter is 5.9% of revenue, 7.8% revenue quarter-on-quarter and 9.2% year-on-year. In absolute terms, this is INR 12.2 crores against INR 13.3 crores quarter-on-quarter, INR 14 crores year-on-year. For the year, they are INR 52 crores against INR 54.1 crore for the previous year. For the quarter is at INR 82.5 crores against INR 47.6 crores quarter-on-quarter and INR 24.7 crores year-on-year. The year EBITDA is at INR 155.8 crores against . Other income from investments and deposits is at INR 9.1 crores against INR 8.2 crores quarter-on-quarter and INR 5.7 crores year-on-year. Total other income for the quarter is at INR 9.7 crore against INR 9.3 crores quarter-on-quarter. For the year, other income from investments and deposits is at INR 28.1 crore against INR 29.9 crore for the previous year. Total other income for the year is INR 34 crores against INR 34.7 crores for the previous year. Total taxes are at INR 20.9 crores against INR 13.7 crores quarter-on-quarter and INR 7.7 crores year-on-year. For the year, excess are INR 43.3 crores against INR 14.6 crores in the previous year. Profit is at INR 67.6 crores for the quarter against INR 38.3 crores for the quarter -- current quarter and INR 18.3 crores year-on-year. For the year, it is at INR 127.8 crores against INR 40.9 crores in the previous year. The comprehensive income is at INR 2.8 crores for the quarter, crores quarter-on-quarter, INR 5.7 crores year-on-year. The year, it is at INR 8 crores against negative INR 10.8 crores in the previous year. The comprehensive income, which includes net profit and other comprehensive income is at INR 70.4 crores for the quarter, quarter-on-quarter, crores year-on-year. For the year, it is at INR 135.8 crore against INR 30.1 crores in the previous year. For the quarter is at INR 25.27 as against INR 14.32 in the previous quarter to INR 6.67 in March 31, 2023 quarter. Here, it is INR 47.73 against INR 14.28 in the previous year. In terms of foreign currency hedges on March 31, 2023, we had USD 3.25 million. Forward contracts at an average rate of 83.26% up to market gain of INR 17 lakhs, which is taken to hedging reserve in the balance sheet.
New contribution from the top 5 clients for the quarter is 34% against 35.8% in the previous quarter. Order book position is INR 639.7 crores including INR 585.8 crores of product business and INR 53.9 crores of projects and services business. In December 31, 2022, order book position was INR 569.3 crores including INR 548.2 crores of product business and INR 21.1 crores of project and services business. Total cash and cash equivalents as of 2023 are INR 595.3 crores against INR 553.8 crores. This includes balances in current accounts of INR 50.5 crores various schemes of mutual funds INR 453.3 crores, fixed deposits of INR 26 crores, investments in tax-free bonds of INR 60.6 crores, preference shares. With regards to receivables, we are at INR 174.6 crores against INR 127 crores previous quarter. In the quarter, there is a gross addition of fixed assets of INR 0.4 crores consisting of primarily INR 0.12 crores on computers and INR 0.26 crores on vehicles.
Over to Swati.
Thank you, sir. With this now, we are ready to open our question-answer session. I will now hand over to Shelvia. Over to you, Shelvia.
[Operator Instructions] The first question comes from Niteen S. Ramawat from Aurum Capital.
Okay. So a couple of questions. One is you mentioned that attrition is comparatively in a better situation compared to previous quarter. So what is the attrition level that we have at the end of March quarter compared to the December one?
This is Anurag. Thanks for this question. Attrition is definitely much, much controlled. I just wanted to share that as of now, our annualized attrition is well below 10% and the quarterly attrition is one of the lowest in the last 2 years.
Fantastic. Okay. Second thing is about the margins. You mentioned that since some renewals have happened because of that, the margin number has gone to a substantially higher level, while there was already a margin improvement in December quarter. Since we do not give any projections, so I just wanted to understand, which is more baseline margin, the December, March or neither of these 2, if you can give some clarity on this?
Currently, that particular input will also not be possible. What we can say that we have worked on some mental aspects towards pricing. That has led us to increase margins in last quarter, this quarter. We'll be just progressing with this momentum.
Okay. Got it. And third question and final question is about the order book. So when we are saying that this is our order book, so can you elaborate geography-wise, I mean to say India and outside India, if you can give some color on this, the percentage-wise split between these 2 geographies?
Actually we do not give geography-wise inputs, but what we can tell that we are -- we have been focusing a lot on India and we are also laying down strong strategies for international markets. That will be my response to you. Geography-wise in the past or for the future, we will not be able to share.
Okay, I got it. So let me tweak my question a little bit. Where do we see the growth coming from India or outside India, if you can give some idea about that?
My response will be that we will be solidifying our position further in India. At the same time, we will be going towards high growing markets in Southeast Asia, Australia and many other places. So all about going to new markets and spending there and we'll be having equal focus on both these aspects.
Next question comes from Rahul Jain from Dolat Capital. Please go ahead.
Yes. Sorry for that. Just to understand a little bit more in terms of this AMC repricing. Last time, you mentioned that there were some pursuit that were pending. If you could share what is the status on that? And if you could quantify the absolute value, which has come from a retrospective element within the current revenue, that would be great.
I can answer your second question immediately. I'm afraid we will not be able to provide the absolute value. And for the first question, we'll request you to repeat because there was a background noise, tackling noise.
Yes, yes. Sir, my first question was that last time you said that there are certain deals, which you are still pursuing, which are in this process of reconsidering it. So any number of pursuit you still have pending on this aspect?
Okay. So the reference, which we gave last time that we are working on a few of the deals. Many of them have been concluded, but at the same time, it's a continuous process. So we are still working on a few of the deals.
Yes. So just to understand this, let's assume you started this process in the beginning of the year and every customer might have come for that renewal during this year. So either they were the reprice to the newer price or they continue to be on the old price? Or what is the status of people who have not moved to the new price?
So just wanted -- just wanted to share that all our customers have really appreciated our outlook and the rationale. So now it depends on the customer organization. At a few places, it has moved very fast, at few places, missions are still going on, but I can tell that all our customers are able to appreciate business value being delivered to them and our discussions with them. I will not be able to give you a breakup of the customer more or less outlook and the progress.
Right. And what was the one-time component in this revenue?
We'll not be able to share this, I'm afraid.
Okay. Okay. But is it safe to assume the customer who might have accepted during the quarter would have paid for the 4 quarters, just like it happened in Q3 for 3 quarters?
It depends on when exactly the contract renewal was due and the effective date of the contract. But yes, wherever it was applicable, that particular revenue was taken into consideration.
Right, right. So one thing is clear from your answer is that more customers may potentially come into this part, but there could be very deviation from a Q-o-Q basis because some of the retrospective component may not come in the next quarter, but some new client may accept in next quarter also. So that way, there could be near-term volatility unless and until we complete this process?
Your understanding is right.
Right, right. And sorry for asking it again, a similar question what previous participant was asking on a margin basis. I understand little bit tricky, but now maybe from a longer-term perspective, not for immediate quarter or year. Based upon the pricing because you would have done some math around it when you do the pricing. What is the ideal benchmark profitability for this business since you have a certain cost, you know there's a certain inflation in the cost, and there is a certain pricing that you would be building in for your customers. So what could be the ideal profitability band for this kind of a business in this new model?
I'm afraid we have some thought process about that. But we will not be able to share any indicative aspect of these inputs with you. Once again, I'm afraid.
I mean yes, I know. Yes, sir.
Let me just add here. Product businesses typically enterprise product businesses, they run on a particular band globally. Our attempt is to move in that direction. How soon will that happen? What would be those bands, et cetera? That is something that we would not be able to comment on. But our -- we have been investing in this enterprise product business, essentially their intent of moving to those profitability levels.
Right. Sir essentially, what you're trying to say is that what a matured software company do is trade in that 30% to 40% plus kind of a zone? That is where directionally we are moving towards. Is that what you're trying to say, right?
Yes. Now by putting these numbers here, again encouraging us to give you guidance, which unfortunately, we will not be able to give.
Yes. Yes, sir, I completely understand your situation, but the reason we keep on harping on this thing is that I mean we've been -- as you might see that a lot of people have been waiting on this moment for very, very long and now it's playing out. People want to really understand the true potential of it. I also understand that you don't want to lead into any speculation but in whatever way and form if you could slightly simplify the situation, I think it would help all of us out here.
Certainly. Let me just reiterate our generic statement, which is what is most important, that we are trying to build a business, which is very strongly value driven and which would deliver long-term value to all our stakeholders, including customers, shareholders and . So that is the only generic statement I can give you. I think we -- as you said, we've also been waiting for this moment. And yes, we do hope that whatever thing that we have put in place and we are attempting to put in place, we will be able to achieve that this generic statement of delivering value to all our stakeholders.
Right. And slightly on a different note, if I can ask one question, which is what I'm seeing on the ground is that there's a lot of new Fintech lenders or lending distribution kind of a setup is emerging in Indian market and there's a lot of credit on UPI taking buzz all over the place. So do we see that these new flourishing NBFCs also as in prospect? Or you think they are too small right now for them to come into our target market. And there is a lot of small LMS and LOS businesses also that we see who are supporting these companies. So you see increased competitive landscape. So from both these aspects, if you could share your thoughts.
That's an excellent question. I'm going to request Anurag to add to my response. See, our solutions are there for the mega players as well as the start-ups. And I'm really happy to let you know that some of the start-ups that we have been partnering with for last 5 years, they have grown phenomenally and with them, our growth has also taking place. So I think that being the case, we will continue to work with players of all the sites. Anurag, do you want to add something?
So thanks for asking this particular question. What we are doing from our end is, we are basically -- we are keeping a very close watch as well as we are doing the in-depth market research about this phenomenon and these patterns in the industry. We have been also doing a wide spectrum, business value provision for our customers. So as Vishnuji has mentioned, the small but at the same time, ambitiously growing customers, we are providing the required product platform and the infrastructure to them to grow as well as large customer organizations, which actually operate in a much, much different league, the product richness is helping their business growth as well. At the same time, all customers be it a small or big are looking forward to have a very agile go-to-market support for their business strategies. And with all -- with many adapters and technology advancements, we are able to do service their needs. So that will be my response to you.
Sure. And the competitive landscape side, are you seeing this small emerging LMS and LOS businesses are making some dent with every third company that I made, they say that HDFC, Bajaj are their customers. I don't know how many solutions these companies are using.
So what I can say right now here is that as there are -- these players are coming up in the market, they are having their own pictures. We have got enough experiences where our customers have shared with us that they have. They got some inputs from these new players, but at the same time, the comprehensiveness of our product platforms is something where they feel no player around and there had been a lot of appreciation. So there can be a situation where these emerging players, emerging operators, I will say that must be going to different customers and talking to them. The breadth and the width we are supporting for these customers of them, you have just named that's a different space in which we are operating and we plan to operate.
Right, right. Thanks for the color. Sorry for the background disturbance at my end. And as I said, they arrive at the side, it seems it's perfectly aligned to us.
Next question comes from Pratap Maliwal from Mount Intra Finance.
Can you hear me, please?
Yes, sir.
Congrats on a good set of numbers. So initially, just wanted to ask on a general -- just generally, like last 3 years, we've seen that after Q4, we've had a dip in revenues in Q1 of the following year for various reasons. So is there anything that we need this trend happen again in Q1 FY '24?
We may not be able to comment again on that. We will -- of course, our effort is to build the momentum, but we may not be able to say anything about projected numbers.
Okay. Now sir, as we've said, that progress on our AMC regulations is an ongoing process. So I just wanted to ask generally that the number of customers that we wanted to convert for FY '23, have we successfully converted? Have we successfully met that target? And is there any more in the pipeline that a higher or lower number may be that we want to do for the next year?
Yes. I would say, more or less, we achieved what we wanted to in the previous year. As Anurag has said, the effort continues. I'd also mentioned in last call that these are significant revision. These are difficult negotiation. They do take time. So we are moving steadily towards it.
Okay. So there are still some customers that maybe we've been in negotiation with for a couple of quarters maybe, and we are still expecting a few more to close them going forward.
Yes. Yes. The effort will continue on this as well.
Okay. So in this regard, last quarter, you had pointed out that about half of our incremental revenue had come from a retrofitted AMC contract. So I'm not asking for any numbers. So just for -- in this quarter, has it been maybe the similar number higher, lower something on that line?
I will again mention that the same thing that particularly had been a momentum. We are working on building that particular part. It will keep continuing significantly but with respect to -- I'm not too sure whether we have talked about, half of our revenue last quarter but certainly, we will not be able to give any indication about the split or the share prospect.
Just the incremental revenue sir, in the last call, it was pointed out that 50% of the incremental was from our retrofitted AMC contract that was called out last quarter. I'm just asking for a comparison.
So I will just share -- I will just mention that percentage will be coming out from that.
Sorry sir, I didn't get you.
What I'm saying is that after this particular AMC revision is a continuous exercise, percentage will be -- a good percentage will be coming out on the AMC revisions as well. At the same time, we will be -- and we will be focusing on the newer markets. That will also constitute to our growth.
Okay. And sir, just a quick check on the employee headcount that we have and any maybe hiring plans going forward?
So we basically had the year at close to 1,800-plus associates. And this number is quite similar to what we had on 31st of March 2022. We definitely do have hiring plans. As always, we have been hiring on boarding mines and gem talents. In addition to that, we will be also onboarding some to basically enable our product journey to next levels.
Okay. So plan of onboarding 400 freshers, has that been completed? Or is that still undergoing, right? Any other targets maybe?
That particular target has been met, we have onboarded it number of focus or the way we call done that.
And we plan to continue this momentum going ahead also, as in freshers?
That's right. That's right.
Thank you for taking my question and congrats on a good set of numbers again.
Next question comes from Anuj Sharma from M3 Investments Private Limited.
Yes. Congratulations to Vishnuji and team for a good numbers. I think finally, the product is deserving what it's due. A few questions in this process, have we lost any customers who have not -- who wanted to give into the new pricing regime?
No. We have not lost any customer because of these negotiations.
The reason I would like to believe is the fact that our earlier prices has used the phase where ultra deep discounted prices.
Right, right, right. Great. Second is now that if going forward, there will be inflation, does the pricing would automatically take into account any changes of inflation. Will it be self adjustment? Or again, let's suppose we have set for the next few years. After that, again we'll have to go back for? Or this time, we have built in something, which will automatically kick in with inflationary? Just some insights into the adjustment of pricing.
Yes. Thanks for raising this inflation-related question. I just wanted to clarify that inflation was just one small component of this repricing. It was essentially the repricing was all about the value that we deliver. So yes, I just want to keep that at the back of your mind.
Yes. No, I agree it's a culmination of multiple factors including inflation. My question was going forward, under what circumstances, let's suppose the pricing was INR 80, it move to INR 100, just an example. Under what circumstances the same client would give us INR 95 and under what circumstances you would give INR 110, assuming it is repriced from INR 100 -- from INR 80 to INR 100. So under what circumstances can it increase and it can decrease. That sensitivity factors or sensitivity will be helpful.
Yes. Certainly, while we can talk about price moving from INR 80 to INR 100 or INR 80 to 105 or INR 80 to INR 95, I would want to highlight the fact that these are -- this is a B2B business and the value delivered to the customer can be very, very different. So it is directly dependent on the value delivered.
Okay. Okay. So last point and harping on this, under what circumstances you could get the volumes of loans generated are lower than could the pricing be lower next year if that were one of the factors?
So this is too fine into the pricing calculations. I don't think we will be able to respond to that finer level. But yes, I can only share that the pricing do take care of whatever are the relevant dimension suitable for B2B business. That has been all factored in and -- that's the reason why we have been able to close the negotiation successfully with our customers.
Next question comes from Vaibhav Badjatya from Honesty and Integrity Investment.
So just a clarification on the AMC revenue itself. I don't want any numbers or any guidance or anything like that. But in earlier quarters, you said that because some of the contracts were under negotiation, we did not even recognize the revenue on a normal run rate basis, which was based on the old contract. And then whenever the contract closed, we recognize the whole revenue at the new rate that was the earlier communication. Now because the financial year has ended completely, are there any customers for which we have not recognized any amount of revenue because of this for the full financial -- for full or part financial year?
No. I don't think so because we said we targeted a set of customers. For them, we did not consciously recognize revenue and we more or less closed all of them. So what we don't -- we did not target last year for them, the normal cycle continues. So I don't think there is any -- if your question is that there is a spillover from last financial year to this year, I don't think so.
Okay. Got you. Understand. That's quite helpful. And secondly, you highlighted this one-time revenue, which is fine. I understand that, but apart from this, are there any kind of one-time project executions or implementation or something that has been done during the quarter? Or it's all one-time was just related to this AMC thing only?
Yes. When the reference to one-time was related to AMC revisions because of the retrospective effect. The implementations and all those revenues are like continuing the way they are expected to continue on project completion or various milestones. So that's a normal cycle.
Okay. Got it. And lastly, on the order book. So if you see the order book also, it has gone up decently as compared to the last quarter. So again, I just don't want to get numbers or something. But would it be mostly due to the AMC repricing impact mostly. I don't want to know again the breakup or something, but just a major component moving to order book.
It's a combination. It's a combination, AMC repricing is a significant part. But yes, there are orders otherwise also that have coming.
Okay. Got it. That's it from my side and congratulations. I think we really appreciate the long-term focus and the focus on the corporate government and honestly, this company has.
Next question comes from Shaik Mohammed an individual investor.
Congratulations to the management for the excellent set of numbers. I have actually same number, but with a twisted question. Like we have 200 plants from the 50 countries. So how many plants we have renewed the new pricing contract? And how many are left?
No. Sorry Shaik, specific numbers we cannot give.
Okay. Another -- actually, I missed the order book number. Can you just share me the order current and last quarter -- from last quarter order book value and current quarter order book value, order book value of Q3 and Q4?
Tapan, would you respond to that?
Tapan, sir, are you there?
No issue. I will go to through direct call.
Thank you. Next question comes from Devarsh Vakil from HDFC Securities.
Right. So congratulations on a great set of numbers. While products are made into this corporate banking, retail banking, cash management systems. If I remember correctly, we were -- we had some initiatives like offline digital cash solution base. And are there any initiatives to go through such new product lines in the near future? Or are we investing in some other products right now?
As of now, the investments will continue in the product lines that we have. Of course, there are extensions to that are being planned. For instance, we in the new product line on the lending side, Islamic banking is something, which we plan to take up now. There are a good number of customers that we have in Middle East. So that is one but not drastically beyond what we have been doing. But yes, extensions would continue.
Next question comes from Manish from Mano Group.
Sir, is there any guidance for FY '24? I'm sorry, I joined the call a little late.
No. I think historically, we've been saying the policy of the company is not to issue any guidance of any sort.
Okay. But otherwise, how is the outlook looking like for FY '24 and beyond for the overall business?
Yes. I don't know when you joined, but as my colleague conveyed earlier, the momentum we expect to continue. Though, again, since I don't know when you joined...
I joined around 03:50, after 03:50.
Okay. I'll repeat in any case that we did mention in the initial comment that there is a retrospective effect in this quarter and financial -- this quarter's revenue. So that has to be kept in mind.
I mean, the traction from all the geographies are good?
Yes. We're getting good traction in the geographies that we are operating, for sure.
India accounts for about 50% of the holistic pie, right? India and followed by Southeast Asia at best?
That's correct.
Next question comes from David Javan an individual investor.
Hi Vishnu sir, congratulations on a great set of numbers. My question is, can you provide an update on FinnOne NEO market share in India? And a follow-up is, are there any new products that you plan to launch soon apart from loan like cycle management?
We are moving into some of -- a whole lot of our customers from FinnOne to FinnOne NEO, it will be difficult for us to give answer the question about new specific numbers. And then talking about products, we are, as of now, continuing to focus on this -- only this product line as the existing product line. And we just want to make sure that all our customers are able to derive maximum value out of it.
Okay. So sir, can you please share the composite FinnOne and FinnOne Neo's market share in India if that data is available with you?
Okay. We have our products collectively support, help originate service -- service and collect retailers worth more than INR 40 lakh crores.
Next question comes from Imran Contractor from Quantum Investments.
Sir, very good results. I would just like to know what do we plan to do with the excess cash, which we have or how much is in excess?
The Board has declared 100% dividend and I'm sure they will also decide about what to do the balance of it.
We have a follow-up question from Pratap Maliwal from Mount Intra Finance.
I just wanted to ask that in terms of geographic segment, so Southeast Asia, the revenues have increased a full year basis, but our losses are also increasing. So what challenges would we be facing now that the personnel cost and the immigration-related issues of the past quarters would have reduced. And what could be the path to profitability here?
I will act when the related constraints have come. They had predominantly hit us in Far East Asia, Southeast Asia, Japan and Singapore and nearby countries. At that point of time, I mentioned that we are working on the pipeline, clearing the projects, delivering them as per the plants. And this will lead to these 2 geographies coming into profits. I'm happy to share that I've achieved that in Far East Asia. Japan is back on a particular track. Southeast Asia also have increased the revenue but at the same time, cost has gone in proportion. We are also expecting relatively higher increase in the revenue in quarters to come. And similar to Far East, Southeast Asia will also be in black financial year.
Okay. And just if I understood it correctly that in the FY '23, we had the benefit of some retrospective effects in terms of our revenues. But since we've kind of converted all the customers or more or less all the customers we had to, so going forward, such retrospective one-time benefits of multiple quarters of revenues coming in, we won't be expecting that. Is that correct understanding?
See, in the beginning of the call and during the call, we mentioned that it's a continuous process. Just a good number of customers, contracts have been rediscussed with them. Rebaseline, but at the same time, that will be counting for a few of our customers. So we will be definitely expecting some . It's a continuous process for some more time.
Thank you. We have a follow-up question from Vaibhav Badjatya from Honesty and Integrity Investment.
Yes. So in terms of, I just want to make sure that I heard it right. What last time you said is that whatever customers we targeted to move to the new AMC pricing, we concluded those contracts by 31st of March. And all of them are converted to the new pricing, right?
Yes, we have. The customer with whom we have started these discussions, we have actually concluded the discussion with them and rebaseline the pricing. But as I mentioned, it's a rolling over process. While we have concluded it for those customers, we are still having discussions with a few other customers, which is going on.
Yes, I understand. So just to invest -- so the customers to whom we have asked for the revised pricing, any customer has come to us as concludingly said no that I will not give you a revised pricing and that's why you also continue to old contract and we have settled with that old contract. Is that happened?
No, not a single case has been observed like that. Opening by the customer, it has for a shorter time, but none of these situations have arose.
Okay. Got it. And in terms of the targeted customers. Again, I don't want to know the name of the customers or the number of customers, anything just a qualitative comment. What is the criteria for you to select that these were the targeted customers? Is it like based on your profitability metrics that these customers are the lowest on profit metrics and less, but it should be targeted? Or it was by the size of the customer or any other criteria that you use that these are the customers with whom we have to go and get them to the new pricing first?
Your question already had the answer in it. So we have a very comprehensive, I can say, method to identify the parameters. Based on that, we select the customers and we start discussing with them. It has got quite a few parameters. I will not really share what those parameters are, but it's a comprehensive one that I can share.
That will be the last question for the day. Now I hand over the floor to Swati for the final remarks.
Thank you. Now we would like to thank all the investors for joining us today for this call. And I now pass it over to Vishnu, sir, for his closing remarks. Over to you, sir.
Once again, I would like to take this opportunity to thank you for your keen interest in Nucleus Software and would like to reiterate our commitment to build a company, which could have continue to add value to all our stakeholders. Thank you so much.
Thank you. That concludes our conference for today. Thank you for your participating. You may all disconnect now.