Good afternoon, ladies and gentlemen, and welcome to the Nagaro SE Earnings Call Q1 2021. At this time, all participants have been placed on a listen only mode. The floor will be open for questions following the presentation. Let me now turn the floor over to your host, Christian Bachall. Please go ahead.
Thank you, And a warm welcome to you. You should have received a copy of the earnings release for Nagaro's Q1 2021 results. If you have not received the press release, A copy of the release as well as of this presentation is available on nagaro.com in the Investor Relations section. I am covering for Christopher Grose. And with me on today's call are Manas Filoria, Custodian of Entrepreneurship and Gagan Bakshi, Custodian of Strategic Finance.
Before I pass you over to Manas, I would like to remind those listening that some of the comments made on today's call may contain forward looking statements. These statements are subject to risks and uncertainties as described in the company's earnings release. Additionally, please also refer to the earnings release for the notice on reported results that are non GAAP measures.
Thank you, Christian, and welcome everyone to Nagaro's very first earnings call. We really appreciate your support and we are glad you have taken the time to join us today at short notice. We are still smoothing out the processes of being a listed company, so you will receive more notice for future earnings calls. The last year was for Nagaro quite a tumultuous year. We had the spin off and listing, which took a lot of work.
We had the COVID pandemic to deal with. We had an ERP rollout and a couple of other things, a new brand. So in Q1, it felt like we were once again Able to focus on the business. We had excellent traction with our clients and the strong bounce In our demand situation, which had started already in quarter 4, 2020, continued into this quarter. That's not to say that all clients recovered.
That's not to say that all industries recovered, but the overall demand situation was still very positive. On the supply side, to recap a little, when the bounce If the demand hit us in Q4, we had no hiring pipeline to service it. It took us a little bit by surprise. So a lot of this quarter was about building up the hiring pipeline and also the hiring operations to be able to hire at the scale that we needed to. This was made more complex by the job market, Which was very extraordinary in these months because of the work from home, work from anywhere, there was A new edge to the competition for talent.
And there was also this lack of physical interaction that had some strange results like the Pipeline drop off rates were higher than usual with people who are not actually coming into your offices, not actually meeting human beings face to face, More likely to accept an offer and then just not show up on the joining date, right? So we had to improve our hiring machine and our hiring ops significantly and we're able to do so and then commence hiring at a past clip. We also had some milestones in this quarter. The acquisition of Livysee from innogy was effective from Jan 1. That's the IoT Smart Home Solution.
We created a new service region in Sri Lanka and incorporated a company there. We also started on some of the tasks that we had listed out in our existing prospectus. We rolled out a stock options program whose details had already been in the prospectus. And As you may know, we have management indirectly holding around 16% of the equity of Nagaro Holding GmbH, the operating company that sits below Nagaro SE. And we have declared in the listing prospectus the intent To roll this over to the level of the SE and we began that process and hope to conclude it by the end of the year.
So these are the key numbers that describe our quarter. We did €115,700,000 in revenue. The year on year growth was 4.3%, Which is usually a very significant number, but perhaps not the best number for a year where we had disruption of COVID for 2 quarters And we're pulling ourselves out of that situation. Also just keep in mind that the USD to euro exchange rate Declined from around 1.1% to 1.2% in the intervening year. More significant in our view is that we grew significantly quarter quarter.
After a smaller jump from Q3 to Q4, we grew 6.2% from Q4 to Q1. Our gross margin was 29.4 percent. And I would just mention here in passing that this is to some extent affected by the fewer working days In Q1 2021 versus Q1 2020, in some of our main geographies of operations, Also because of the leap year in 2020 with 29 days in February, so not a major change. We ran an adjusted EBITDA of €18,600,000 which is roughly 16% of revenue. In the next row, we have put some illustrative numbers.
We have a lot of industries and quite a few segments. I'm just trying to put this all in one slide Visually, we just put the fastest growing industry versus our slowest growing industry to give you a sense of the range As well as the fastest growing segment client region versus our slowest growing. So you can see that Among industries, horizontal tech grew by 32%, while Travel and Logistics shrank by 20%, which is, of course, not unexpected. The shrinkage in Travel and Logistics and a couple of other industries also affected Central Europe, which was our worst performing client region, While the rest of the world continue to grow fast of a small base smaller base, the more detail on this, of course, by industry and by segment is There in the report in the statement, our top 5 clients continue to account for just a small fraction of our revenues, 14%. Coming to the next row, we ended the quarter with €99,000,000 in cash balance.
In the quarter, we added 1084 professionals and had a high customer satisfaction score even for us of 96%. We also maintained our we're also maintaining our guidance that we shall talk about later in the presentation. Here's some more detail on how the different industries performed. Apart from Horizontal Tech, the other industries to show Significant proportional I mean significant growth were Automotive Manufacturing and Industrial, Retail and CPG as you might expect And to some extent, Life Sciences and Healthcare. On the flip side, of course, Travel and Logistics was impacted negatively, But also Energy Utilities and Building Automation since we have considerable exposure to building automation and the construction of Hotels and buildings slowed.
We also have some other impacts in some industries, which are more due to 1 or 2 specific clients rather than broader industry trends. We already talked in the previous slide about our revenue by customers. There was almost 0 movement In the top five and top ten numbers, although some clients changed places, the revenue concentration ratios remained Almost precisely the same. We continue to ramp up engineering resources. On the right of the slide, you can see that we added 1084 professionals.
We ended Q1 at the edge of the Magic number 10,000, very much a round number in the base ten number system. I must point out though that a number of these hires were engineers fresh out of college, and they will take some time to undergo the intensive training that we put them through before they become productive in our system. But still this was a very creditable achievement.
On the left
of this chart, we have the revenues by client region. And you can see again the Central Europe, which is impacted by its exposure to travel and logistics And to a couple of specific clients and the rest we have already just talked about. Now just a quick view of our segments. You have, as we discussed, Central Europe shrinking a little bit, but growth in the other segments. You had North America growth of €37,000,000 to €39,000,000 Rest of Europe from roughly €17,000,000 to €18,000,000 and rest of world from €14,500,000 to 16,400,000 Year on year as compared to Q1 2020.
The gross margins, they have had some Slight movements, but nothing extremely significant. Now I'll just turn this over to Gugan to talk a little bit about our cash flows and liabilities.
Okay. Thank you, Manus. Hi, everyone. On this slide, we will talk about the cash flows and liabilities. If you would, Please focus on the chart on the left hand side.
Our cash flow for Q1 2021 was a negative euros 7,200,000 against negative €1,200,000 in Q1 2020. The operating cash flow was EUR 1,600,000 in Q1 2021 as compared to EUR EUR 5,400,000 in Q1 2020. The reduction in operating cash flow can largely be ascribed to the payment Of spin off and listing costs. The cash outflow from financing activities in Q1 2021 was EUR 4,900,000 as compared to EUR 2,300,000 in Q1 2020. Major items of cash outflow in Q1 2021 were lease payments of about EUR 4,300,000 And net interest payout of EUR 1,300,000, which can be mainly ascribed to the new syndicated loan facility we had taken in mid December 2020.
The cash outflow from investing activities in Q1 2021 was €3,800,000 versus €4,400,000 in Q1 2020. The cash outflow was mainly to meet contractual payment obligations of older acquisitions. Now let's turn our attention to the chart on the right hand side. The chart shows financial liabilities And lease liabilities and cash, which helps us calculate the net liabilities. Lease liabilities for Q1 2021 were €58,200,000 marginally up from December 31, 2020 of €55,200,000 Financial liabilities for the Q1 2021 were €180,200,000 versus €182,600,000 at December 31, 2020.
These include drawdown on our €200,000,000 syndicated credit facility, some working capital facilities and other bank loans. Cash and cash equivalents were at €99,200,000 marginally lower than the closing cash balance of €107,700,000 at the end of the year 2020. As such, our net liabilities for Q1 2021 totaled €139,100,000 versus €130,000,000 at December 31, 2020. Net leverage, which is net liabilities divided by adjusted EBITDA, was unchanged at 1.7x. With this, I will turn over to Manas.
Thanks, Kagan.
Now we are close to the end of the presentation. And before we move to Q and A, A couple of final slides. This slide talks about shows a little bit of the history, recent history and the outlook that we have. We have been growing organically at around 19% in the 2017 to 2019 period. And COVID slowed down our growth in 2020.
And this year, we expect to grow at about 15%, Not because of demand constraints, because there's absolutely no demand constraint operative at the moment, but because of supply constraints. As I said, We started this year without a pipeline and without the ability to ramp up to the extent that we needed to. The way this works in our experience is that the run rate at which you end the year gives a lot of momentum to the following year. And this year, in we had to sort of pull ourselves out of some negative momentum in 2020, Particularly in Q2 and Q3. So with that, we expect to grow at 15% this year, but we expect to resume our regular 20% rates of organic revenue growth in the medium term.
We also expect that our adjusted EBITDA Guidance of 15% will hold for 2021 and then in the medium term as well. One question on your mind when you think of our guidance must be COVID, especially in India, the 2nd wave. And I don't want to brush it under the carpet. I just want to address it very explicitly. The 2nd wave of COVID in India has been terrible.
We have lost already 6 young colleagues, just around 30 years old, which is 0.1% of our workforce. And I would say dozens, if not hundreds of Nagarians have lost family members or close friends and it's been a complete disaster. So you can imagine the disruption as people have scrambled to deal with the illness either that they have been having or in their families. But I would say that we are still on track for meeting our revenue and adjusted EBITDA guidance. And we We are very quite confident of that.
I would just though make a larger point and just take this moment to caution everyone on this call To please personally as well as in terms of persuading your communities and governments to not let down your guard, This new strain of virus is very deadly. And I think it's best that no one across the world becomes overconfident or lets down their guard So everyone is fully vaccinated. Anyway, so with that, Just a quick recap. When we listed the company, we put forward these investment highlights. We felt that we had a company In a market that was very resilient and had tailwinds, we had a good positioning, We had great clients, highly diversified.
We had a strong organization that could deal with all kinds of change. We had good financials, robust financials and had lots of opportunities for growth. And I think today, Coming through this crisis, we feel that a lot of the things that we put into our Capital Markets Day presentation and our listing prospectus have sort of come in good have held us a good stance, Been very good for us. And we are now excited to get back to our normal growth trajectory. And that's what this quarter Basically, it felt like just going back to business and getting back to our normal growth trajectory.
The floor is now open for questions. Julia, maybe you can just Take that.
Gladly. Thank you. Ladies and gentlemen, the floor is now open for questions. We have several questions coming in. The very first question comes from Martin Comtes from Jefferies.
Your line is open. Please go ahead.
Yes, good afternoon. Manas and Gaggen, hey. Thanks for sharing your view on the quarter. Just three questions, if I may. First of all, you mentioned that it was quite tough hiring people at the beginning of the year.
Could you just share How the average salary environment has developed over that time? So do you expect for the full year To see some pressure on that cost position or did you figure out other processes to basically avoid paying higher salaries? And secondly, on your margin was actually fairly strong. I was above expectations, I would say. Can you also share how much of that was related to COVID and savings around COVID And sort of how you think about that cost position going forward.
And then lastly, and that's I think you already Brought that point very clearly across. I think it's a very devastating situation in India right now in terms of COVID. Could you maybe be a bit more specific on what that means for the Q2 for you? Are you currently having Closed offices or outages or project delays or something like that, just to get a feeling for that.
Thank you. Thank you, Martin. Thanks. Let me just address those questions 1 by 1. So on the Hiding of people, we did have a very tough environment.
And but I must say that Nagaro continued to Have good retention rates or at least compared to our a lot of our competitors or other companies in the IT services space And continue to grow, whereas some other companies are struggling to do that. So Nagaro is seen as a good place to work And that was sort of underlined in this environment. There was some pressure on salaries, but not very much. And we do not expect the changes to create any significant deviations in the full year results. We also have, I must say, a client base that is very much attuned to all of these trends.
And we feel that we have room to also go back to our clients should we need to, to let them adjust the rates If we need to in order to hold to our lines. Coming to the Margin, we are not currently measuring separating out what are the which of the components of the margin Related to COVID savings and which are not. But in the short term, what we do see is that There are significant savings that are occurring. We are not attending events. We are not traveling and things like that.
At the same time, there are, for example, there might be a little bit more pressure on, For example, taking care of people in a crisis like the COVID crisis. So we are not very much Betting on these increased margins, but we are confident in saying that we will be able to reach the we should be able to reach the 15% adjusted margins for the whole year. On the India COVID situation, what we have seen is, See, we have had our offices closed pretty much now for a year and a few months. So it's also, by the way, very, very interesting how a company can operate Perfectly virtually for so long. I mean, I'm not saying that every office around the world has been closed for this period, but Most of our offices have been closed.
And but in terms of project delays, etcetera, I think we've had very little of that. Our clients have been very, very understanding. They've been making lovely videos and sending them across to our teams, Very nice letters and offering support of different types. When we are trying, for example, to organize 8 equipment, our clients are jumping in. So all in all, I think we see that the reduction, For example, in billable hours that we see in April and potentially in May is still relatively small.
And we see that No, this is not going to set us off our expected revenue or Adjusted EBITDA goals. It's a bit tragic to be talking about these numbers in the backdrop of this humongous Tragedy. But yes, in terms of our financials, we are quite confident about them.
Appreciate your answer here. Thanks. I'm going to go back to the queue.
The next question comes from Michael Jungheinz from Commerzbank. Your line is open, please.
Yes. Hello, gentlemen. Thanks for taking my question. For instance, I would like So yes, talk about Q1 growth of 4%. So could you elaborate a little bit on to what extent your yes, Your growth in Q1 was affected by the more restricted talent supply, which might have had an impact on your internal project execution here.
And to what extent have you seen some slowdown in terms of demand coming from some of your end market Yes. So particularly for instance, if I see here in the split of the segment reporting, so For instance, management consulting or like life sciences, central services, I think these were some of the verticals, which had a quite good momentum in 2022 Sorry, in 2020, where you now had a rather subdued start to the year and other verticals, which showed, we The most special last year like Travel and Logistics, Telecoms did not show very much of an improvement in Q1 either. So a bit more color here would be very helpful in terms of your end market dynamics and how you would view the dynamics in the quarters to come. Thank you.
Thanks, Michael. You see, I think what we it's important to remember is that we had It was very strong Q1 last year and then we had a low Q2, a flat Q3 and then a slight recovery in Q4. And the business that we lost, if you take the difference between Q1 and Q2 or Q3, which are roughly the same, but Q1 and Q2, That business is not coming back, right? So that's business typically in Travel and Logistics or Building Automation, things that are unlikely to Bounce back, right? So we don't expect that to come back in the next couple of years.
So what we are actually pulling ourselves out of Is Q2 or Q3, right? And that's kind of what the way we see it. That's why for us, the sequential quarters are more important, right? In terms of demand, demand right now is such that if you had another any number of people, we could just deploy them. So we have just I hate to use the word infinite because not infinite, but it's for all practical purposes unconstrained.
We are not at all demand constrained. And if things stay the way they are, we don't expect to be demand constrained for the rest of the year. We are completely talent constrained, completely talent constrained, right. So That's the context. We don't see any slowdown whatsoever.
We see just a very heated demand situation. But the talent side, as I mentioned, is a little bit aggressive, but also chaotic. So you learn you're learning new things Every few weeks. And even, for example, with this new wave, it remains to be seen whether it leads to people sticking on with their companies Or continuing to move. And so there's a lot of changes almost week by week in this situation.
And I'm just happy to say that we have been able to Had a lot of scaling in terms of number of hires. We have a 3 digit number of hires now. We have AI being used. We have automation being used. We have marketing, almost like you market to clients, just The sort of CRM type of activities being used for the people who are joining us.
So I think that we have done a lot to address this. But still, again, we could today add another A few 100 of people and just they would just disappear in a second, right? So there is a lot that we still need to ramp up In the on the talent side to completely take advantage of the demand that we have today.
Okay. Thank you. I appreciate very much. About another question I have. I mean, I know that in more normal non COVID times, You tend to have a quite steep revenue visibility in your project order backlog about 10 to 11 months from today.
So is this still the case As of today or has COVID now in particular around the new spike of cases in India Kind of affected this in usual times pretty deep revenue visibility in your book or has been unchanged or are there some changes now in this You're confident to say, okay, I can recognize about 90% of the revenue in the 12 months ahead of me.
That's a great question. I think our revenue visibility is unchanged. The ratio is unchanged. Of course, one doesn't know the unknowable. But as of now, we have just a lot of Pressure on the demand side, pretty much every escalation that I get, and I don't get many, but everyone that I get is about Not ramping up fast enough, right?
So and this is just true for the entire industry. I think there's a the digital product engineering side or the digital engineering side, There's just immense demand. We continue to win new clients, but even the existing clients are Just hungry for more and more teams and more and more work to be done. So this is just the nature of the Market right
now. Good. Understood. Last question before I go back to the queue Relates to your statements what you made. So I would assume you would try to implement pricing measures, so probably price increase in this year.
I'm wondering from which quarter at the earliest these, Let's say these price increases would or could become visible in your books. And so then We probably would assume, let's say, probably better margin better gross margin development from there.
Yes. So we have some clients or many clients with whom we have periodic discussions on price. So it's not Plumbed in a particular quarter. Last year, we skipped many of these discussions because of the pain everyone was feeling. And this year also we have been a little bit slow on picking it up, but the time is Coming when we will go back to our clients.
So there's no particular single quarter where this would show up. I think you will just see it in our steady Maintenance of our margins, that's most likely. It's not likely to be clumped in any single quarter.
Okay. Okay. So but overall, it's fair to assume this is going to be a more back end loaded year 2021 in terms of revenue and In terms of earnings contribution, right? If you say that you would now try to implement pricing, price increases in the quarters to come. So I would Say that's probably more back end of the year compared to 2020.
In terms of revenue, we all as a growing company, we always have Increasing revenue often have usually have increasing revenue from quarter to quarter. Also quarters 23 have typically more working days Then quarter 14. But we have some other compounding things happening with COVID, etcetera. So we're not very, very clear, but this is how it should typically look like. But in terms of our Earnings, I would just again warn that even our employees get raises throughout the year.
So it's and then you have currency movements. And so it's a complicated sort of picture. So I would not place too many bets on Having our earnings being backloaded, right? So that I would avoid trying to give that impression.
Okay. Thank you.
Thank you, Michael.
We have one further question from Andreas Wolf from Warburg Research. Your line is open.
Yes. Hi. It's Andreas Wolfsberg Research. Congratulations on the strong profitability in Q1 and Condolecents to everyone experiencing a difficult situation right now. My question is Basically regarding your currency adjusted revenue growth.
So since you had some headwind from the U. S. Dollar And probably also some other currencies, what would be the currency adjusted growth rate in Q1? That would be helpful. Another one is on Your employee growth, so you picked up in terms of number of employees quite nicely in Q1 Plus 14%, you have already mentioned that not all will be billable immediately.
Is it right to assume that it Usually takes roughly 9 months to get people billable after leaving college. And then on the office space, if I look at your depreciation compared to Q1 last year, it seems like the figure has not Change much, which I take as an indicator that you are not adding additional office space, which is Obviously, what you also described in your presentation, is it going to be the new normal in inverted commas that people will Work more from home going forward as well, I. E, it will be more of a hybrid model. And then maybe on the constraint to On board people, do you feel more competition also from Europethe U. S.
With regard To access to your people or the regions where you are active, Given the fact that those companies might also implement work from anywhere policies? Thank you.
That's a great set of questions, Andreas, and thanks for the commiserations at the beginning. So let me take these questions up 1 by 1. Currency adjusted revenue growth is definitely a number that you would like to put out later. But we are coming from a Spin off from Algayer with slightly different ways of doing things. So it's a difficult number to put out with reliability at this point.
We will be doing we hope to be adding this number in some quarters from now And starting to publish it. At the moment, I would not like to put a number out there, but you can sort of estimate it from a couple of things, of course. But I appreciate that this is a very important number. And in the long run, we definitely want to be publishing this number. It's just that the circumstances of the spin off make it a little bit difficult.
The second one, in terms of our employees, The fresh employees fresh out of college, how soon can they be deployed? I think it depends a lot on the Client and depends a lot on the situation and the demand. Somewhere between the shortest period is 6 to 9 months. It can be a little bit longer than that. 6 months, I think, is the absolute shortest.
It can be a little longer than that. But yes, we are also hiring in significant numbers laterally. So I think that we are trying to cover we're not waiting for this, but this is a good Indicator of the confidence that we have in the situation 9 months, 12 months from now. Coming to office space, I think what we have decided to do is To be still flexible in this topic, we have let go some of our smaller buildings in India especially. And we had a very large building coming up and we do plan to take it because the rate at which we are growing, Even if not everyone has a seat, we will need space.
But the new normal, I think, for us is going to be That there's going to be a lot of flexibility. So people are going to have the flexibility to either be at work 5 days a week Or 0 days a week or anywhere in between. And of course, this will be somewhat constrained by What the client wants or what security needs they have or what the project team feels they need. But our We have a strong expectation that in the medium term, our offices will not be built 1 to 1 For every employee that we have, but rather at a lower ratio. What that ratio is, I hesitate to say, but it will be a lower ratio.
At the same time, we expect that in the new normal, we will have a lot of smaller satellite offices in smaller towns across India. We had actually declared That we would start 4 such offices in July, which now looks unlikely. But offices where people could Come in for a couple of days a week and just meet up with company mates. And the idea just was that Someone who joins us in a small town should feel that we are invested in the town and are likely to be there in the long run And not just ask them to move to Gurgaon, for example, right. So that's the thinking.
In terms of the competition for our talent, it's not really directly from the Europe or the U. S. We haven't seen that At all. I mean, there are they've always been, actually for some years, some companies that do offer To put people looking for talent directly in touch with individuals, freelancers in countries like Romania or India Or Mexico, but that model hasn't done very well. We do have, of course, a lot of competition from American companies, for example, That are that have their offices in India.
So when Amazon when its need for new software To take care of the huge e commerce boom was exploding. I mean, they were hiring in big numbers in India, right? So We do face these competitors here anyway. We don't just necessarily face them directly from their home countries. And I think the idea that we have that we are not just a staffing company, we're not just providing resources, we're not just Doing arbitrage, but we are investing a lot in building vertical competence, in building innovation and thinking breakthroughs, which is our tagline.
It's just that If you just want the warm body, that's a very different business. We want to be just adding a lot of value and being able to just bring The Nagaro touch to our projects. And I think we don't face we don't expect this to change in the coming years, at least in the coming next few years. So So that's the 4th question, Andreas. Thanks again for these questions.
Okay. Thank you. And one quick follow-up, if I may, Manas, the currency that you have assumed for your 15% Revenue growth. Is it basically assuming a stable Currency environment, is it how we should look at it? Or would you also be confident despite Some currency headwinds to achieve the 15% revenue growth target this year.
Thank you.
That's the euro on euro sort of statement or guidance. But we do have we do feel comfortable that we are in a good position. So we are not Overly worried about minor currency headwinds.
Okay. That's clear. Thank you.
Thanks, Andreas.
We have further question from Martin Comtes. With regards to the time, maybe sticking to just Jen, your line is open.
Thank you for one quick follow-up. We have seen in the past New history that M and A has actually been quite a vital part of your growth story. Just to follow-up, would that be a solution for Sort of the supply shortage in
the near term? Or is
that something that you're currently sort of put in the 2nd row and not really pursuing actively? How do you think about M and A?
Thanks, Martin. I thought no one would ask. So thank you. So M and A continues to be a part of our growth strategy. As you know, we just like we did not have a hiring pipeline, We also do not have M and A pipeline at the start of the year because we were all focused on the spin off and listing till December.
But we have subsequently been talking to a number of targets and it does remain a big part of our strategy and We hope to be able to make some moves in the coming quarters. I would say that It's not really a solution to our hiring challenges directly, because what happens is that any company that would you would take on, If it's a decent company and it's a growing company, it will already have its folks Completely deployed, right. And that's part of the that's unfortunate, but it's also the fortunate part of having a company That joins you that is growing and has high utilizations. But what it might do is give us Feet on the ground in a geography to do a better job with hiring, right. So that is definitely on our minds.
And as you look at Targets all around the world, we do have this at the back of our minds that in some of these geographies, having a Reasonably accomplished player join us would allow us to tap into the Job market is better. But it's not necessarily in every case No solution to our needs. And our needs now are several 100 people a month, right? So it's which we It's not very easy to for even a large acquisition to be able to supply.
Very clear. Thanks, Manas. Thank you.
And we have time for one very last question, which comes again from Michael Jungheinz. Please, your line is open.
Yes. Hello. Thanks for taking my last question. It's on your receivables management. So in 2020, I mean, you had a pretty strong cash conversion, Which was also driven by your improved receivables management.
Do you see any COVID related or any other headwinds on this year's Receivables Management. Or do you expect that you can actually maintain the low level of receivables as a percentage of group revenue for this year as well? It would be my last question.
At the moment, we do not see any headwinds with receivables. And we do expect to do a reasonable job this year as well.
Thank you.
There are no further questions. Handing back for the closing words to Manas Fuloria, please.
Well, thank you everyone for joining this call. It's again for me a very important milestone for the company, a very important milestone. Thank you all for supporting us. And yes, looking forward to deliver the stuff that you want And to sort of living up to the story that we put out late last year as we listed and spun off. So thank you again and yes, talk to you again in a quarter.