Subex Ltd
NSE:SUBEXLTD
Subex Ltd
NSE:SUBEXLTD
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Ladies and gentlemen, good day, and welcome to Q2 FY 2024 Earnings Conference Call of Subex Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. G. Krishnakanth. Thank you, and over to you, sir.
Thank you very much. Good morning to everyone who have joined the earnings call for the quarter and half year ended September 30, 2023. Now I'd like to introduce the members of the management who are present for this call. Along with me, I have Ms. Nisha Dutt, CEO; and Mr. Sumit Agarwal, Chief Financial Officer of the company. I'd like to start the conference call by going to the safe harbor laws. Statements in this call contain our future to perfect are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. There is some uncertainties relating to these statements, including but not limited to fluctuations in earnings, our ability to successfully integrate acquisitions, competition in our area of business, bank concentration, liability for damages or contact with all of tax incentives, cortical incertainty around the disuse of our intellectual property and tellieconomic conditions affecting our country. With this, now I hand over the call to Ms. Nisha Dutt to take it forward.
Thank you, Krishnakanth. Good morning, ladies and gentlemen, and a warm welcome to Subex investor call. We are delighted to have you with us today as we share an important update. So firstly, let's kick off by [indiscernible] on our strategic focus. I am happy to share that I've been focused on engaging with our customers, that's kind of been my #1 priority. And they have shown significant enthusiasm for the concept that we have been talking about now, which are connected experiences, artificial intelligence and leveraging 5G for enhancing their product offerings. So our strategy involves collaborating with our customers to realize vision.
So what we are doing is we are co-creating products and solutions with them to ensure that our use cases are immediately applicable to their context. So this approach not only strengthens our relationship with our clients, but also initiate entirely new discussions that we have not previously explored as Subex. So that's been very exciting for me. As I mentioned earlier, one of my large commitments is also to enhance our product range and offerings that we provide to our customer base. This will, like I said in the last time, it will also help us reach a larger market. So we are progressing with several partnerships that will propel us forward in this direction.
Turning to the business update. I mentioned in the last call that we would do it against 3 dimensions of growth, efficiency and talent. So coming to the first one regarding our growth, I'm happy to announce that we have sustained quarter-on-quarter progression as is evident by the results. Furthermore, I think in this quarter, we have successfully onboarded 3 new clients across our product spectrum. So this signifies that there are opportunities for us just beyond our RASM portfolio. Our commitment to investing in our AI portfolio really remains strong. We are particularly excited about using GenAI use cases, they are tailored for telcos.
A recent milestone includes the launch of our production-ready GenAI solution in collaboration with Google, which was unveiled at DTW Copenhagen. So as most of you know, this is an important conference that we attend. This serves as a demonstration of how GenAI addresses our customer experience challenges, particularly in the areas of fraud management and revenue assurance. Also continuing my commitment to co-creating solutions with our customers, we recently wrapped up a user conference that we held in Malaysia called connections. So this event was really well attended by all the key clients in the region, which showcase has on workshop unveiling and discovering new use cases. So this is how we have been engaging very closely with our clients.
The second aspect of the update I wanted to give on was an efficiency. We are boosting our product portfolio by actively investing in partnerships. So while we are invested in developing our own products, we are also going this partnership model with this helps us optimize our spending and also get our products out to the market much faster. So this is again something that we are quite focused on right now.
The third aspect, of course, is talent. We are making sure that our teams get better by giving them training on latest developments in AI and other technologies. We really care about the learning and getting better personally that also helps us grow as a company. So we -- and we continue to double down on diversity and inclusion initiatives, that is personally quite important to me. And we have seen very good success with our initiatives that we have launched. It's cash returns, which really encourages the mental return to the workforce once they leave work for. So we have seen really good results with that.
Next, I'll cover our consolidated financial results for the quarter that ended on September 30, 2023. So performance highlights, they are with you what just you know for the sake of completion, the revenue for the period is at INR 768 million as against INR 673 million in the previous quarter. So this is a quarter-on-quarter growth of 14%. EBITDA for the period is at INR 46 million negative against a negative EBITDA of INR 1.7 million for the quarter that ended on June 30. PAT for the period is INR negative INR 111 million as against INR 193 million. And all in all, I think we have registered better performance in this quarter compared to last quarter. And I see this as a part of our -- I almost think of it as we are trying to recover and turn around this. So I see a positive momentum, and I think that we are focused on committed to delivering growth.
Thank you for your constant support as always. I wish you all a very happy Diwali. We are now open to your questions and comments.
Thank you, ma'am. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] First question comes from [ Mahesh Kumar, ] an individual investor.
Is related to IoT security. What is your road map for IoT security? And are we going to adopt this IoT security product, which we have for software-defined vehicles? Because there are multiple projects going in Europe and U.S. on software-defined vehicles. And the software-defined vehicles security is -- electronic security is going to be an important element. That's the first question. Second question is how our manpower cost and other expenses are going up every quarter. So are you going to work on reducing the manpower cost and also the other expenses so that profitability will go up. The IT company should have at least 25% plus EBITDA margin. So these are the 2 questions.
Thank you, [ Mahesh, ] for that. Sorry, you can hear me, correct, [ Mahesh? ]
Yes, I can hear you.
Okay. So on the IoT specifically, so there are 2 parts, right? I mean, just to clarify it to everyone. So we have something in our portfolio, which is IoT focus, which is where you would be able to do this connected cars and all that. But the one that you are probably referring to Sectra is actually in Penalty solution, which is about industrial security. So what we do is they sort of secure, maybe it's an ONG pipeline, it's an airport. So they do that kind of work. It's more industrial security, but that's not to say that we don't have IoT kind of solutions in our portfolio. That's something that's an active area of investigation and kind of focus for us. And when we are able to make progress on it, I'll come back to you and tell you more. But certainly, I complete that...
2, 3 years back, in one of the investor multiple investor calls, Subex management was highlighting IoT seats, which they been enhanced to IoT security. The IoT security, we have a center of excellence in U.S. This one of the town IoT security has been implemented.
Yes. So that's what I'm coming to. Actually, the is that they made the previous management made a able to do more towards OT security. So we have actually shifted focus. So right now, it's only industrial security that they are on...
The technology is same. Technology is same.
Technology is not same. Actually, the protocol. So IoT [indiscernible]...
Products. Original product was IoT security because we were targeting smart security smart cities, then vehicle securities. See, one of the first announcement by the Subex was on IoT security for a vehicle manufacturer, OEM.
Correct. No, no, that was the case. When they kind of started -- actually, we did develop products on IoT. But then they found that OT security was a much bigger opportunity actually for them. So the focus shifted to OT. So a lot of protocols that sector is running today is actually on OT. It's not an IoT right now. The underlying tech, it is -- I would say it's common, but our positioning is more towards OT right now. That's not to say that we will not go back and relook at IoT. That is something that...
Because there will be millions of vehicle on the road using software-defined vehicle technology. And they will need all the security. If we are not targeting that market than what we are targeting.
So currently, the target is doing the hard assets, but I take your point on board because this is also an area of investigation for us. And hopefully, I'll be able to come back and answer this question better. But this is something that's been an area of investigation. But currently, our focus is certainly on the OT security side.
No, but for growth we need this segment.
Okay. No, I hear you. I hear you. And definitely, we will circle back with you on this. Sumit, do you want to cover the manpower cost?
So at lower cost, if you see quarter-on-quarter, the manpower costs remain the same, we are able to hold the cost of the manpower. Apart from that, we are also optimizing the manpower cost. And...
What is happening, our manpower cost is 50% of our sales. which is very high.
No. So our manpower cost is including our -- one is the R&D concern or the product line and under there is a delivery line to that, okay, once we sold the market. So if you ask me, we are able to improve our gross margin in the sense, if I go with the delivery cost that is 1:1 correlation. But having said that, the whole issue, which has happened and which we are in the process is to our -- we have -- our top line has actually reduced it for multiple reasons. And now we are closely monitoring our manpower cost.
If you see quarter-on-quarter, it is actually controlled as a cost. And further, there's a cost optimization exercise has been keep on doing this exercise to ensure the key talent has been retained and -- so we are working on our high-level productivity here. Obviously, there is a scope of improvement. But having said that, the overall cost, we are kind of tightening it very hard. On the other cost, again, it is quarter-on-quarter. It is controlled. This quarter, we have an exchange FX loss has come up close to INR 1.8 crores due to the currency weakening on the GBP INR and also the Euro, AUD side. So there is a bit of FX has come. The focus is for -- to come to the positive EBITDA side.
My one point is manpower cost is our sales growth is not more than 30% plus or 25% plus, and we are retaining the same manpower cost, which is 50% of the sale. That may be a complacency in the cost control. So it has to come down drastically. If sales is not growing. The trend should grow.
So our part is not like 100% variable or congeal. So there is a -- it's like a -- there is a fixed force of manpower, which you need to maintain, and that is a variable component to that. So as Nisha just mentioned, the idea is to bring the top line back and we are just focusing towards that. So whatever the loss ground, which we did it, we are just recovering it back, and we'll be maintaining very lean cost management deals. Yes.
But see, if we are not using AI internally to reduce the cost, then cost is not going to come down the most of the testing can be done by AI, manpower can be reused from that front?
We are taking optimization measures, Mahesh, but as focus goes, right? I mean, Basis definitely bringing efficiencies is one aspect. But my focus is on to see if we can grow the top line because I think you can do whatever you want on the cost aspect. But unless we are very laser-focused on top line, overall, the company will not grow.
Stop lying is not going to last 10 years. [indiscernible] some serious...
But that's not exactly the journey is about, right? We are trying to kind of transform that. We are on that -- and I really want to see if they can make a dent there because at the end of the day, like so much said, right, there is a certain amount of cost that we will have to carry that will come out. And the top line has to be our focus currently.
No, from next quarter. No, no, just the final point to Nisha. Next quarter meeting after the results, can you tell whether we are targeting HBV security or not?
Definitely. I'll circle, [ Mahesh. ]
[Operator Instructions] Next question comes from Abhishek Kali, an individual investor.
Nisha, one question. You said that you are arenas in this quarter. Is it possible for you to share the details? And like the contract size, if you can share the names, which 3 new companies have? And how are they on staying to our many [indiscernible].
So I'm not sure -- A detailed view?
Definately, to prove once we see that there are rules against disclosure. So we can do at information we can disclose the broad information that -- so that's what we have been in this call. So definitely, when more specifics to it, we will do a disclosure around them.
But I think one thing, what is positive about and the reason I even mentioned the positive thing is that these are in the portfolios that we have been trying to grow. So all the wins have come from portfolio areas, which are sort of not the ones that give us a bulk of our revenue. So we are seeing new green shoots, right? So I think that's the more exciting part for us actually. And that's why I wanted to kind of report that...
Absolutely, wonderful. Ms. Nisha sorry to interrupt, but if you could spell at least the details on which areas? Because I mean I'm just trying to understand if there are resorts in which area? So if possible, please?
Are in the areas of Network Asset Management. Network asset management is something that we have had in our portfolio. I will not say that we haven't had it before, but we are seeing a lot more sort of -- we are starting to see momentum. So it's in the network asset management and security. So we are seeing momentum in hoteliers.
Okay. And Nisha, so if I may ask, what are the kind of margins in these 2 areas that you typically see? As a company.
So we have -- so basically, at the company level, before we take on any project, there is a minimum margin requirement actually, which we have without which projects cannot be approved or we don't go forward. And that end across portfolio. So we don't know it by product. So it's not that FMI have a certain margin requirement. And on -- so that's just to tell you that while we want to do some [indiscernible] opportunities. That does not mean that we'll compromise on margins. So margin requirement stays quite stringent. We are quite stringent about that actually. And we make case-to-case calls if you see there is a necessity to sort of make special calls. But again, I would say, broadly, there is a stringent margin requirement, and we stick to that, actually, regardless of what area it is.
Okay. If I may ask one more question.
Sure, please go ahead.
It's regarding the Hypertec integration. In the past quarters, I'm talking about Q3 FY '20 to '23 and Q4. And in the first quarter, I don't think we have any issues with hypersensintegration. So the challenges that we had, I mean, while we rolled out Hypersense it was like a good product that we were -- everything is sorted out. But then we had implementation challenges. So now are those challenges result as we onboard more customers on Hypersense?
Obviously, every product is -- I mean, every product has a road map, right? When you introduce the development never ends on a product. It means that new few newer features come as and when client requirements grow. So there is a constant road map that we are driving towards on Hypersense, and I would say that we have been doing well, actually. We have that installed base is also growing for us.
Yes. And one request, if I can make. The presentation or the Board meeting outcome slides, which were uploaded on exchange. I mean hard to read -- it's hard to read if you guys can upload a better copy, that would be much appreciated.
Okay. Thank you for that feedback we didn't know that. We'll get that fixed. Appreciate.
Next question comes from Sanjay, an individual investor.
Am I audible?
Yes, you are Sanjay.
So congratulations, Nisha and team, I think a good turnaround. I mean, last 2 quarters, the things are getting better. Revenue is going up and margins have improved. I mean loss has come down. So this is a really good sign and hoping for really better things going forward. My question is about the business. Is it like a seasonal business in since the Q3 and Q4, like at the end of the year, the things picks up more or it impacts in Q3 and Q4? Is it because of the licenses or something? The question is about Q3 and Q4, are those going to be better than Q2? Is it the increment will be happening on the revenue and margins?
So thank you, first of all, Sanjay, it's always good to see some good feel. But as you know, Q3, Q4 for me to make any comment would be a forward-looking statement. But I can tell you that our commitment or at least our best efforts are always to see how we can do best by our shareholders. You have been with us, and we really appreciate actually all the support. But specifically on Q3, Q4, I wouldn't be able to make a direct statement.
There is seasonal. I mean because many of the IT companies that Q3 is the least impact because of furloughs and other things and holidays, but the product company is probably because of licenses and things actually. So just what -- how the model of your business? Is it -- so if you can just on...
Historically, you're correct. Historically, usually, H2s are better than H1. So historically, that has been a pattern to go back. We are hoping we do at that.
And the second question is about the recurring revenue. We are seeing that $2.3 million per month. I think the same number was there in Q1 as well, and there's no change. Is it so the more -- so this recurring revenue is going to improve going further? Or this is going to be staying like this for this financial year?
So again, our -- the recurring -- so that I'll just clarify to the investor, how our recurring revenue has been considered. It actually starts on a project of finish and then the subscription starts. And our contracts are or our products are slightly a long duration nation fee. So that's how the quarter-on-quarter improvement because this is the 12-month MRR kind of a number. And that's what this number you will not show immediate growth once we start executing and finishing the projects, the MRR will trigger. And then you will see it. So this number what we normally reported is based on the 12 months, how the MRR looks like.
Okay. Okay. And the last question is about there is not much -- I mean, there is no rate release or anything happen logos are there since 14 July 2022, there is not a single operation about any new win or new things happening or new partnerships happening. So it could be really nice from investor community or even from your in vision. I just get the idea of what is really happening, otherwise, you just comp-only quarter-to-quarter calls that some updates are there, but not really retails, we are getting it. So really appreciate really some priceless about what things are happening and now any new reins or partnership happening, which is really great.
Yes. Sure. No, I will make a note of that. We'll try and be a little bit more active on our less actually.
[Operator Instructions] Next question comes from Rajesh, an individual investor.
Good morning, Nisha. I will begin with the suggestion that if we can have a gap of 2 nights between the result announcement and the earnings calls because we hardly get time to go through the results and sort of prepare for the questioning. This is -- yes. So that will help.
We are also -- I usually request received request almost immediate to that I mean I have received request both ways. It's the first time I'm saying that you want a gap, but typically, people tell me that we not do it very much the next day. So...
Yes because it is the results season -- we have so many results coming out, and it takes time to go through the results and prepare questions.
I can't comment, but we'll see what we can.
Okay. And one question is already a site this order backlog, if you can give some details, what is the current order backlog?
So basically, a few quarters before we stop reporting the order backlog and come with the MRR kind of a number. So that is what it is. But just to give you a sense around last from a 12 months or horizon point of view, apart from MRR, we have a onetime revenue of around close to $13 million to $14 million. then the MRR material. So that is broad as a number. But yes, that is what we stopped giving the order backlog because typically order backlog is -- it's a 3- to 4-year kind of a number, which just concludes the investors. So we stopped reporting the order backlog from that.
So I think numbers are encouraging, and we would like to see much better results in the future. Thank you for the efforts you people are making.
Next question comes from Samir [indiscernible], an individual investor.
Yes. Congratulations [indiscernible]. I have 2 questions and both are related to the improvement of the top line. First thing, what are the top 3 challenges and competition that we are facing in terms of our sales? And what is our mitigation plan to tackle that? And second question is, do we have any focused and aggressive strategy to expand beyond telecom demand so that further our top line can improve.
So thank you, Samir. So first of all, I think in terms of challenges, I would say they would be like any other business. I think we are facing -- sometimes we have headwinds on newer technology areas catch income. So that's where I think we have been very focused on making sure that we are making a lot of investments in upgrading our technology stack. So I would say that, that's -- it's -- I would -- I think of it as a positive thing actually. It's a challenge, but it's a very positive thing because it pushes us actually. So I would say that's definitely one thing.
Other is, again, as sometimes the competition grows, we also see some margin squeeze coming in, which is something that, again, we have to kind of take into consideration and see how we can work on optimizing our costs so that our margins remain healthy. So I would say those are the kind of challenges that we have had. But otherwise, we seem to be doing well geographically. In terms of our strategy -- and I mean, if you think about the telco revenues now, right? We do have a strategy where right now we want to double down on telco. We are looking at some adjacencies, that's under investigation.
And in new course, when we make back, we will definitely come back and inform you more about it. But just to tell you some broad numbers, telco and renews today are at around INR 1.7 trillion actually. And if you think about their spend, they spend around INR 400 billion on CapEx and OpEx, right, growing at 1% to 3%. So you have quite a bit of headroom actually within telco. So while we feel that, that industry is not spending, if you look at it in terms of quantum, there is a lot of headroom for growth, especially given our size and where we are, I think there is enough -- more and enough for us to do here. But that's not to say that we shouldn't look at adjacencies.
In fact, that's something that's an active area of conversation internally for us. And we have been investigating what are the areas. We do have some work that we have done in fintech. This is telco wallets and that kind of area. So we are also investigating some agencies. And definitely, in due course, I'll come back and give you more information. But this is just to give you a sense of where we are.
Next question comes from Abhishek Kali, an individual investor.
So question for Sumit. I think 3 quarters back, we had some issue with some receivables from a particular client. What are we doing in terms of recovering those deals?
So yes. So actually, it starts 3 quarters maybe around 4 quarters sometime like Q1 of last year.
I got it now. Part of the concept.
So we took a large write-off that time more about just to control the client is sitting in the Middle East region, and it is becoming slightly difficult also to collect that receivable due to the existing issues -- we are in touch with them. But to be very honest, we have not done much progress on this. The line is in touch. And there is no like a sizable improvement has happened. We have even sent them the legal notices around on that. So not much has moved on that front for that particular customer.
Okay. A question for Nisha. Nisha, what has been the change? I think you said that you were going to make certain changes on the sales force, right? Would you be able to allow the detail if at the changes that you have now? Or are you are trying to make in order for us to increase our top line because, I mean, I don't need to say that we do see on what we said about it.
So some of these changes are going on as we speak, Abhishek. But I think basically, it is to see how we can be -- I mean the gold remains can, right? I mean how do we become more efficient, actually as an organization and to do more attractive assessment of where the telco revenues are growing where the investments are happening regionally and hence, where do we need more seats on the ground?
Where do we need a front line to be bolstered -- so those are the costs that we have been making to make sure that we bolster the areas. And we are also doing this differentiated thing on geography because as you can imagine, right, developed countries are on a different tack in terms of where the spends are. It's more on data. And where developing countries are still growing their subscriber base. So when you do your product offering, it can be a little bit differentiated, actually. So you don't have to take everything to everyone.
So we are actually trying to sort of differentiate at that level and see how we can kind of make it more efficient, but also where is it that AI and 5G have a lot more trust, where is it that we are seeing the older portfolio do better. So those are the assessments and changes that have been going on. So I would say it's a work in progress, but that's what -- in my last 6 months, that's what I've been doing actually trying to get these things set so that we have better understanding of our geographies, customers spend more time with them. So that's what's been going on Radioshack. I mean, I can circle back with specific details, but -- but if you have like something strategic you would want to would pretty happy to tell you.
Yes, I mean specifically, I mean, since I'm not privy to the challenges that you guys have at a corporate level, right? I would not be the right person to tell you anything. What might ask this simple, have we identified even the gaps that we have on our sales side, which I think from what you're saying is you are in process, it's a work in progress. So at least we are on the track and which I think it shows in the numbers as well. But -- and we will have to be patient, like you said, give me 2 or 3 quarters at least. So -- but the good part is you have made progress from the last quarter to this quarter. So rather than if you think about what has not happened rather than congratulate you guys [indiscernible].
Thank you so much, Abhishek. But again, my request to all the investors on the call is, please be patient because these things do take time, right? This is -- like I always say, this is not a small bond that you are trying to start a change the course. This is a large ship. So it will take some time, but we are in the process. And we are added. So please be patient.
Thank you. We have a follow-up question from Sanjay, an individual investor.
So my question is about the head count in the company. meanwhat is the current headcount? And was there any increment in the employee count during Q3? And are you having hiring plans for Q3 and Q4?
So our current headcount, and this may not be a precise number, but definitely in the ballpark, it's 920, 920 people. This is including onshore offshore. In terms of hiring, I mean, we do it need basis, Sanjay, that goes on, right? As the needs of the business grow, we hire in some areas and improved some areas. So I think those costs -- I mean, that's, I would say, an ongoing activity. There is no specific -- I mean, obviously, as you can imagine, we are hiring more on AI side and all that because obviously, that's the tire -- so that goes on, it's business as usual.
And as the annual increment done or it will be happening in the coming quarter?
No. So we completed in quarter 2. That's why there's increment cost also comes into the manpower cost, though we hold it the overall employee cost. So effectively, there's a reduction in the employee cost, but it is not reflecting due to the increment cost has come. And I'm just saying from a comparison point of view. And increments are always done, like the organization increments are all done. Our cycle followed is quarter 2 -- so July is our cycle basically. So all the increments taken in July.
Okay. I was hoping -- I mean that's why I was hoping that probably must have done by this time. And the other question is about recently have seen there is a Barat app launch by Subex on infinite. So what is that app? And is it something -- what's your plans for that app to the sole revenue generation, I think just for a user to use it, what's your plan for that?
I mean we always do everything with an eye on the revenue. So that's first part. But basically, it's an ask that help you manage all your KYC in one place. It's like an after gets unlocked just by your face, right? So it's your point that you can unlock from your -- it's like a base recognition kind of thing. But more importantly, it sells as one place where you can get so let's say that if you're going to a bank, right, and you need to take a loan from a bank to and is putting it simply, -- but if they need like 3 or 4 documents from you, you can actually give them -- you can consent to those 4 documents being shared by the bank. And you don't have to carry a base case anymore with all the documents and all that with you. This actually let's you give you -- give consent and authorized documents and only the ones that you have authorized going to the bank immediately. And all this happens without variation of any privacy.
So this is where we think that technology is headed. And we are personally very excited by it because just imagine the number of financial transactions that happen which require and now with the regime coming to constant KYC. We believe that these should be like a really useful thing actually. So that's what we are excited about. But yes, that's what -- in a nut shell, that's what the product does, actually. It can also be used for, let's say, when companies onboard employees, right? They ask for your 10-plus certificates to 12 or degree certificate. So everything that's important can be in one place, which can be unlocked and you can provide consent. So that's sort of a thing.
Yes. It's really interesting answer. Already you have a customer or you're piloting with any customers this app?
Yes, we are actually, and we are piloting with customers to get feedback to make sure that we sort of refine. We are doing it with our existing customer base.
That's great. That's great. And my last question is about the business -- I mean, on the business side, like the products, mostly sector and ID Central. So the business for that also grew in last quarter. I mean, how the assets -- are you seeing improvement in business per sector on ID Central and Hypersense all 3 segments?
Yes. Actually, we are seeing growth. And actually, the app that I was talking about that morats, IDCs are actually sector has shown heavy growth and so has core business actually. So we have grown on all 3 fronts, which is sort of -- that's what I was referring to earlier that when you see growth across portfolio concentrated in one area, it's a good sign for us.
That's great. All the best for remaining quarters. And we are hoping by Q4, we will be positive and all the best for that.
Next question comes from Raj Kumar Ojha, an individual investor.
My question is regarding Subex account aggregator. We have participated into that, what is the progress and whether any commercial activity has commenced.
So we have applied for the license account aggregator license. I believe that, that process is still ongoing in the sense that they have to do some due diligence, there is a decision framework. So I believe we have progressed quite well on that aspect, but the license is not granted yet. We are still awaiting grant of the license.
Okay. My last question is, in the last phone call, you promised that after 1 year, we'll see real profits. Now can I say one quarter has passed to only 9 months are left?
I totally hope so. I wanted to be a moving target. But...
[indiscernible] in the last 12 months [indiscernible].
No, no. Thank you so much, at be truly appreciated, and I [indiscernible] are definitely content center.
Invested in Subex since 29 12, 2009. I'm -- so 15 years, that's so long.
Very grateful to you and very greatful for your support, but hopefully, I mean, definitely, the focus is to do right by you.
And my last request is. As one of the persons put a question to you that these keep us informed in between phone calls or in the quarter, the progress that we are making on the new licenses that we are winning. So that keeps the momentum high because the company is not doing well. And this little information will keep us in a good help.
Sure, sure. I take that feedback on.
Thank you. That would be the last question for the day. Ladies and gentlemen, this concludes the conference for today. Thank you for your participation and for using Dusaba's conference call service. You may disconnect your lines now. Thank you, and have a good day.
Thank you.
Thank you.
Thank you, ma'am.