Good morning to those of you tuned in from Europe and North America. Good afternoon to those connected from Asia. On behalf of Nagarro SE, allow me to extend a warm welcome to you. You should have received a copy of the earnings release for Nagarro's third quarter 2021 results. If you have not received the press release, a copy of the re-release, as well as of this presentation, is available on nagarro.com in the investor relations section. With me today, on today's call are Manas Fuloria, Custodian of Entrepreneurship, and Gagan Bakshi, Custodian of Strategic Finance. Before I pass you over to Manas Fuloria, 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 risk and uncertainties as described in the company's earnings release.
Additionally, please also refer to the earnings release for the notice on recorded results that are non-GAAP measures. With that, it is my pleasure to hand you over to Manas.
Thanks, Christian, and welcome everyone. I keep saying that at Nagarro we don't think quarter by quarter. We are out to build a company that lasts and grows for years and decades, but a good quarter is always welcome, and this has been a good quarter. Of course, there's a long way to go to build the company that we dream of, but every week and every month and every quarter, we get a little further down that path. As in recent times, even in quarter two, these last three months have been fast-moving and complex, but we have sort of gotten used to this pace, I think. We have done fairly well to tackle all the changes and challenges in these three months with our operational capabilities and our financial performance.
Nagarro's revenues grew 33.7% year-on-year in quarter three, 33.6% in constant currency. This was the second successive quarter of a 10%+ quarter-on-quarter revenue growth, which is interesting. Sorry, the slides move back and forth. We added over 1,100 Nagarrians in this quarter. Not all of these additions are immediately productive since this number also includes many young trainees. Overall, I think it was a great hiring performance in a very tight job market. The competition for top engineering talent continues to drive wage inflation. We believe, and we have said this before, that the demand for our services is ultimately price inelastic, but the billing rate increases can lag our wage increases, and hence there is margin pressure in the interim. A couple of words to post-quarter three developments.
We have acquired this company called ATCS, which we are excited about, and we expect the synergies from ATCS to kick in soon. We have also completed the last steps of the reorganization related to the spin-off from Allgeier, with the rollover of the management participation up to the Nagarro SE level. This, we believe, better aligns the management goals with shareholder goals, and both of these are very significant milestones for us. We also upped our revenue guidance for 2021 earlier this week by EUR 10 million. Going a little bit more into the details for this quarter, we have already talked about revenue growth. Revenues were EUR 141 million, and the gross margin was 28.4%. Adjusted EBITDA of EUR 21.7 million.
The fastest growing industries for us were the horizontal tech industry vertical, growing at 63% year-on-year, while the slowest growing or, in fact, contracting industry vertical for us was management consulting and business information. As we have said before, our verticals are still very small, so even the movement of a single client can drive business up and down. That's the two extremes of the range of fluctuation. In segments, you know, the rest of world segment is once again the fastest growing at 73% year-on-year, while Central Europe is the slowest growing at 15%, also weighed down by our exposure to travel and aviation in this segment. Our client concentration remained roughly at prior levels, with 15% of our revenue coming from our top five clients.
Our cash balance at the end of Q3 was EUR 110 million. Of course, some of this was deployed towards the ATCS acquisition. We added 1,149 professionals in this quarter. Our CSAT score was almost unchanged at 94%, and our guidance that we changed earlier this week was changed to revenues for 2021 being in the region of EUR 525 million and an adjusted EBITDA margin of 14%. Now, looking at the results by industry, you know, our growth was relatively broad-based, but led by auto manufacturing and industrial and retail and CPG. Retail and CPG is, of course, related to the growth in e-commerce and the need for e-commerce solutions by a large number of different players.
Trying to add new solutions or trying to buttress and strengthen existing solutions that they already had. You can see on the right that our client concentration, both the top 5 clients and the top 10 clients, remains virtually unchanged in this quarter. We have been continuing to serve opportunities globally. We think of ourselves as a global company. We look at opportunities around the world, and we find it very interesting and exciting to chase these opportunities using talent from all across the world. You saw earlier that the rest of world grew fastest, and North America also gained with respect to Q3 2020.
On the right, you can see that we are now 12,052 professionals, which is a significant step up from the time of our listing with 11,116 professionals in engineering. Now, moving on to the segment revenues and gross margins. We already referred to the segments a little bit. You can see that Europe is running a little bit behind the other two segments. We have also, you know, gross margin pressure that we have talked about earlier coming from wage inflation and the billing rates increases that are occurring, but lagging the wage inflation. Now, Gagan, maybe you'd like to step in to speak a bit about the balance sheet and cash flows.
Moving on to the balance sheet review. In the left-hand chart, we are showing the net liabilities position. The bar on the left shows the position at December 31st, 2020, and the bar on the right shows the position as of September 30th, 2021. In that chart, the green box shows the lease liabilities, which were EUR 56.9 million compared to EUR 55.2 million at year-end 2020. The blue box shows the financial liabilities, and this includes drawdown on syndicated credit facility, working capital facilities, and bank loans. At September 30th, these financial liabilities were at EUR 180.6 million, slightly lower than the EUR 182.6 million at year-end 2020.
The gray box shows the cash position for the nine months at EUR 109.6 million, which is slightly higher than the cash balance of EUR 107.7 million at year-end 2020. This totals to a net debt position of EUR 127.8 million, which is coming out slightly lower than the EUR 130 million at year-end 2020. Net leverage on a net debt to EBITDA basis is now at 1.6x, which is again a bit improved from 1.7x at year-end 2020. Moving on to the cash flows on the right-hand chart. For the nine months, the total cash flow was EUR - 0.8 million. The operating cash flows were at EUR 21.1 million.
The reduction in operating cash flows can largely be ascribed to the one-off payment for spin-off and listing costs of EUR 8.4 million and increase in trade receivables and contract assets by EUR 5.6 million and EUR 14.1 million, respectively. This is offset by funds received from factoring of EUR 9 million. Cash outflow from investing activities was EUR 6.7 million, and this was mainly to meet contractual payment obligations from older acquisitions of EUR 4.2 million and CapEx of EUR 2.5 million. Lastly, the cash outflow from financing activities, which was EUR 15.2 million. There were two outflows and two major inflows that we talk about here. The two major items of cash outflow were lease payments of EUR 13.7 million and repayment of principal for bank loans of EUR 4.2 million.
This was offset by an increase in cash flow from a EUR 3.2 million contribution on exercise of stock options and a EUR 2.9 million cash received from holders of the first five non-controlling interest. Having said that, overall, the company's liquidity position at the end of nine months was comfortable.
Thank you, Gagan. Now moving on to the outlook. Those of you who have joined previous calls, there are some changes to our outlook slide. One, of course, is a numeric change. We have revised our guidance, as I have mentioned, but we have also removed our statements on the medium-term outlook guidance. I'll just explain why we have removed them. We used to say, we have been saying since before the spin-off that we expect to grow revenues at 20% organically in the medium-term and have a 15% adjusted EBITDA margin. There was a context to that.
These statements were appropriate at the time of the spin-off when our revenue growth was slow due to the early impact of COVID, and our EBITDA margins were actually exceptionally high due to the temporary cost-cutting measures, including temporary salary cuts. Now, neither of those seem relevant any longer. With our quarter three revenue growth at over 30%, saying that we expect medium-term revenue growth to be 20% sends an unintended and incorrect message. We are withdrawing the statements related to our medium-term guidance. We expect our FY 2021 revenue, as you know, to be EUR 525 million in that range, gross margin at 28% roughly, and adjusted EBITDA margin at 14% roughly. Finally, you know, a reminder on the investment highlights for Nagarro. You know, we have been traditionally ending every call with this.
The content is largely unchanged since the capital markets day last year before the spin-off, but it is satisfying to see that we continue to prove these claims line by line. We are cashing in on our positioning as the engineering DNA digital leader with a special enterprise agile approach. We continue to grow with our large global blue-chip customer base. Our organizational design and culture have stood up especially well to the COVID changes and the work from anywhere environment. We in fact now start to post the kind of revenue growth that we always felt we were capable of and with decent margins and upside potential. We continue to demonstrate that by the side of organic growth we can grow with synergistic M&A. That's the presentation.
Thank you all for your interest in Nagarro and your interest and participation in our growth story. We will now take questions, and for this, I will hand the call back to the operator.
Thanks, Manas and Gagan. Please do provide your questions via the chat tool. We switched to this format back to the Capital Markets Day format after some people had said it was a bit complicated using the telephone to listen for the voice over. Happy to receive your feedback on this format. The way it works, you enter your question, I'll read it out for everyone's benefit, and then Gagan and Manas will answer. First question comes from Florian Treich of ODDO BHF, who says, "Congratulations with the strong growth acceleration in Q3 and an anticipated continuation in Q4. How much of this is driven by existing clients recovering and/or new client ramp-ups? Do you expect recent quarterly onboarding run rate of greater than 1,000 Nagarrians to continue into coming quarters?
Given that your employee growth rate is likely double as high as your revenue growth, is it fair to say that 2022 organic growth will end up being higher than your midterm target of 20%?
That's a bunch of very good questions. Thank you for them. You know, just as we have said before as well, quarter four for us is generally a slower quarter because of a lot of holidays for Diwali, for Christmas, for the year-end. We also have several leaves that people have banked in the earlier part of the year because of COVID that they might end up taking. There's some uncertainty around that that I do want to mention. In terms of our growth being driven by existing clients versus new clients, I think existing clients are slightly more than usual in terms of the drivers of growth. This is not because we don't have new clients. I think the new client acquisition pipeline has been very strong.
It is just that in a supply constrained environment, you feel more loyal to your existing clients, and you have a bias or a tendency to prioritize their needs over the needs of new clients. I think that's the short-term situation. In general, the client situation is largely unchanged in terms of the addition of new clients. Our quarterly onboarding, I would not like to predict any numbers because, you know, we are in a very dynamic job market and we would rather just see each number, you know, from quarter to quarter retrospectively. We like to be an agile organization and try to do the best that we can. That's what we are doing.
Yes, we continue to hire in reasonable numbers at this point. Of course, there is some seasonality to the hiring of people from universities, and you will not necessarily see every quarter look the same. Your last question is also very interesting. Yes, we are adding more people than our revenue numbers would indicate. Yes, that is a signal for our expectations for organic growth. I would not quantify that, if you will, allow me to not quantify that. Thanks for those questions.
Next question is from Adrian Pehl of Stifel. Could you please elaborate on the synergies you see with respect to ATCS? How will the process of integrating the asset work, and in what time frame?
Okay, great. ATCS is very interesting for us. As we said, we were always interested in expanding a footprint in the U.S. market. We have, as a company, had a long history with the U.S., but we have in recent times been more focused on Europe in terms of acquisitions. ATCS brings us back into the U.S., although with an interesting European twist in the sense that they also have some business in Germany and some in other parts of the world. This is also interesting from the perspective not just of the U.S. and German markets but also in different verticals. They have a large automotive client, which they do multiple things with respect to the digital transformation of this client, and that's very interesting for our automotive practice.
They have a strong Salesforce digital marketing, analytics practice, which is very interesting for us. They have a couple of major life sciences clients in that. Given the interest in life sciences and given the interesting and rather hot area of marketing analytics, this is also of great interest to us. They also, apart from these, have a few other clients in different industries, a beverages company, a financial company for the marketing analytics piece, which is really of interest to us. In terms of integrating the asset, I think we have by now a lot of experience in both the acquisition of such assets and the integration of such assets. We have a team that's sort of dedicated on that.
This integration starts with the focus on business synergies, revenue-driving synergies. At some point, there's this, you know, the cultural sync up. Of course, we're already selecting for culture in the first place. You know, the actual engaging of the gears, if you will. There's this IT and sync up after that and brand sync up. That process has already begun. There are already at least four or five conversations where we are trying to see what we can do together in terms of bringing more value to our clients. The timeline for that, you know, I think integration is an infinite thing in a sense that it takes many, many years for something to be fully integrated.
Bulk of the work is done in the first year, or the first 18 months. We do expect this to be fairly integrated in the first 18 months. That said, they do have an earn-out. The sellers have an earn-out till 2024, and therefore there will be some aspects that we will give sufficient freedom to the sellers to operate so that they're able to meet their earn-out goals.
Next question is from Adrian Pehl again. Travel and logistics appears to pick up in terms of vertical exposure. Could you elaborate on this a bit more, i.e., what do you see going forward here?
Yeah. So, you know, travel and logistics goes well beyond aviation. We are seeing a lot of focus on logistics, for example. You know, I don't have any long-term view on the future of aviation, but definitely logistics with all that the world is running into, both in terms of opportunities for logistics as well as the constraints posed by logistics. I think these are interesting problems to solve, and there is suddenly a heightened awareness of these problems and a heightened attention to these problems. We do expect this to continue to grow.
I mean, that said, there are aviation models that are also, you know, expected to bounce back, and we are starting to see some of that, but it's difficult to predict, you know, how it will look like in the medium- term.
Next question is from Martin Comtesse of Jefferies. Can you please shed more light on why you withdraw the medium-term guidance? Does this imply that revenue growth will be higher but margins will be lower than previously expected? Will you publish a new medium-term outlook at some point soon?
Okay. No. Let me just clarify. We are in this interesting position now where our revenue growth is already higher than our medium-term revenue guidance, right? It's a bit odd because when we started off, we had a revenue growth that was lower, and we were saying, we think we can climb up to 20%. Now it looks like we are saying we think we will go down to 20%, which is not really the mood or projection of the company, at least in the short term. Definitely, you know, the medium-term now is difficult to quantify and, you know, is it a couple of years out, and what happens a couple of years later? At the moment, we see really rapid growth.
I think that, you know, we felt that medium-term guidance was doing a bit of a disservice to our view on the future. In terms of margin, again, it was the other direction. We were coming at that time from margins of 18%-19%, and we were saying that we expect 15% to be kind of our target for the medium-term. Now our margins are nearly 15%. I mean, more or less. That doesn't add that much value. I think that whether we come out with a revised medium-term target or not, we have to consider. We don't have a decision on it yet.
What we are basically saying is that, yes, our growth trajectory at the moment is it does appear to be one where neither of these medium-term targets are carrying very much value or information, and maybe they're giving the wrong signal to investors, right? There is nothing here. Please don't read it as us saying that our margins will be lower than 15%. That's not the intent. The intent just is that we don't think that the combined guidance is adding value, and we will consider whether we reinstate it or not. In fact, we'll be discussing it internally to see whether that makes sense.
Next question is from Gilles Dargnies at Sycomore. Hi. How do we think about growth from here, especially for 2022? I hope that's reskill. What are the hiring plans for 2022? How do we think about pricing catch-up versus wage inflation?
All good questions, right? As part of our formal process, we do need to have plans for 2022 that are in our model that goes with the supervisory board. We haven't done that yet. We will come back to you later in this year with the 2022 plans. In general, the outlook on the growth side looks good. Our hiring plans are at the moment supply constrained, so we are hiring as fast as we can go. We don't have any particular plans as such. We're just trying to hire as many people as we need to deliver the services our clients are asking for, and these are currently far more than we have.
In terms of our pricing versus wage inflation, you know, we have been able to negotiate price increases, some of which are coming on stream now, and some of which will come on stream in the first quarter of next year. We also, as I discussed, have hired a lot of youngsters who will come into billable positions fairly soon, which will also help drive our overall costs down. There's a bunch of different things that we are doing to tackle this. Yeah. Again, I don't have a sharp answer on the pricing versus wage inflation thing. In general, we are comfortable looking out at Q1 and Q2, that we have, you know, this under control.
We also are starting to see, you know, and maybe this is very early, the beginnings of the turning of the tide, perhaps, where the runaway inflation is slowing down, the runaway job hopping is slowing down just a little. This is mostly anecdotal at this moment, and I don't want to draw strong conclusions from it. Yeah, there are some minor changes in the market, and we hope that this will have us returning to a more traditional job market in the coming quarters.
Gilles was also asking for a gross margin view for 2022, Manas Fuloria, and is asking whether the 15% EBITDA margin is a floor.
We are not in a position to comment on 2022 yet. As I said, this is a little sacred thing for us. We would like to go through the supervisory board and run our plans before we start to comment on the 2022 plans. The board deserves to know before we need to have a discussion internally before we talk about it externally.
Next question is from Andreas Wolf of M.M. Warburg & Co. Congratulations on the strong performance. Manas, could you please elaborate on current order intake for the periods beyond 2021 and your view on next year's wage development? Medium-term development, is middle management incentivized with regard to margins or mainly with regard to absolute profitability levels? Thank you.
Okay. You know, hi, Andreas, thanks for the questions. You know, we have a lot of our business or most of our business comes from existing clients and existing projects. We have you know, fairly good visibility into 2022. Again, without getting into specifics, I can just say that things look fine and good there. In terms of wage development, it's difficult to have a crystal ball and predict what is going to happen in 2022. Again, as I said, you know, a pillar of our company for the last many years has been that the work we do, the demand is fairly priced and elastic as long as our clients are doing okay, right?
If there's a macroeconomic, you know, crash or something, then it's slightly different. In a general positive environment, the demand for our services is price elastic. Especially after COVID, I think everybody is well aware of the pressure on margins and the need for driving this digital transformation. I think that, you know, we have recourse to our clients. But again, it lags the wage increases. Yeah, that's how we see it. In terms of our incentives for middle management, I think there is a thin layer that definitely has some incentives on margins. But in general, our focus continues to be to incentivize client satisfaction.
That's really our largest contributor to incentives. Then to align senior management incentives to the value generation in the company. Many of the people or most of the people in senior management are also shareholders or in some ways connected to the shares in the company, so that they can take a longer term view on the eventual development of the company. Thanks again, Andreas.
To follow up on questions from Adrian Pehl of Stifel. Could you elaborate on new client wins versus growth in the existing customer base? Putting that together with another question in the same area, could you elaborate on the customer wins in Asia and how you try to expand your business in the region?
Okay. Adrian, in any year, we have over 90% or around 90% of our revenue coming from our existing clients. Even if you win a new client, typically the first year you're doing just smaller projects and getting your feet wet, and the client is getting to know you. It's very customary for us, pun not intended, to have a large part of our business in any year come from existing clients. This year, it's slightly more than usual even for the reasons I just mentioned. But we do have very interesting new client wins, very interesting new domains even where we are winning clients.
In terms of Asia, you know, we have been largely propelled by the management consulting companies who are taking us to their clients, and we have several cases, including in the last year, of the top three management consulting companies that are consulting on strategy with our clients. For example, life sciences clients and in this sort of post-COVID world or COVID world, there is a lot of rethinking of how digital solutions can alter the playing field, the ecosystem of life sciences companies, for example. We are then being requested to come in to try to make some of this high-level thinking real in terms of digital products, digital services, digital ecosystems.
Yeah, I would say that's one of the big forces driving our growth in Asia with new customers.
Next questions are from Lucas Fang. Good morning to all of you. This is my first question. Can you please give us some insights on your M&A pipeline? How many companies do you have in your hot list and which size? What do you expect in terms of timeline? Will we see at least another acquisition in the next 12 months? The second question is, did I get you right that you're optimistic to grow faster than 20% midterm target in 2022?
\ Thanks, Lucas. Our M&A pipeline is very large. We look at large number of deals all the time. We are constantly in that process and looking at targets of different types in different verticals, in different countries. This is something we learned from Allgeier, and we really relish it. It also gives us a chance to keep evaluating how the world is changing and what else is new out there. In terms of our hot list, we probably can't talk in great detail, but we are looking at relatively smaller targets, EUR 10 million, EUR 20 million revenue, EUR 30 million revenue. We are unlikely to make large transformative acquisitions. We keep our options open.
The general focus for us is to keep getting more client access, especially with the larger acquisitions, including ATCS, for example. With the smaller acquisitions to maybe build some niche capability that might be of interest to us either now or in the future, because we also have an eye on the future with the metaverse and you know, the kinds of capabilities that you might need if some of the newer thinking in what can be done with technology actually starts to play out. With that in mind, we have this hot list that we curate or rather the pipeline that we curate. In terms of timeline, you know, again, I would not like to say anything because these are really one-off.
Each one is quite a custom opportunity, and sometimes they work out and sometimes they don't work out. Yes, in general, it's likely that in a 12-month horizon we would be doing acquisitions. It would be unlikely for us to not be doing acquisitions. In terms of our growth numbers, I'm walking a fine line here. I do understand that you're keen to get an idea or a glimpse into 2022 projections, but it's difficult for me to say anything at this point that is very firm. All I can say is that, you know, we are growing at
If you grow at 33% year-on-year, you can also see from the trajectory that even a holding pattern next year would also bring significant growth. Yes, we are looking at our plans a little bit more closely and we should be out with guidance for 2022 in the next few weeks.
One more question on M&A, which is M&A related from Gilles Dargnies, Sycomore. How high would you go to leverage for M&A?
Interesting question and one that we are also talking about internally, and I don't have a firm answer. You know, with that, our banking facility allows us to go up to, you know, 3.25, for example. Gagan, correct me if I'm wrong, but and we are well within that. I think we continue to look and evaluate, you know, how much of leverage we would like to live with. We have been very comfortable with leverage in the region of two, which is what the ATCS deal puts us in that region. We are thinking beyond this.
We have, of course, a cash generation also from month to month and we can use that for acquisitions. We don't have a firm limit right now to offer you in terms of where we draw the line at M&A with leverage.
I'll combine two of Adrian's questions. First one is a follow-up from an earlier question of Adrian. Thanks for the answers of aviation and logistics. Should we think of Lufthansa still being a major customer of yours? Combining that, Manas, with the second question. Within your verticals, have you seen anything in the past months and quarters which surprised you in terms of demand, lack of demand or magnitude?
The first part of this with Lufthansa. Lufthansa continues to be a significant customer, maybe not in terms of revenue today, but definitely in terms of our relationship and our conversations with them. We hope to play a small part in their journey to resume business as usual and in fact, build back better, to use that phrase that's a bit hackneyed. It's a great opportunity for Lufthansa. It's a great opportunity for us. We are really in touch with them on multiple topics. They continue to be a very significant client for us, even if they are not among our biggest customers today. We hope this will come back at some point, and if they come back, we'll come back too. We are quite confident about that.
In terms of, you know, have you seen anything about demand or lack of demand or magnitude of demand that surprises us? Not really. I think that what is fascinating is that more and more assumptions are being questioned, and in terms of the way we live our lives with real world things and technology generated artifacts. We are starting to think bigger about what we can do with technology, which is a welcome little boost of energy. I really think that in terms of, you know, revenue, et cetera, it's not something that's happening today.
In terms of dreaming for this future, which is far more seamless, frictionless, more like a Hollywood movie, you know, just picture perfect, like an expensive, well-produced Hollywood movie, a good Hollywood movie, a picture perfect future, I think there's a lot of opportunity and that's something that's very exciting. I think for all of us at Nagarro, we are looking forward to that and seeing, you know, what role can we play in that future.
One more question by Adrian. Could you please speak about the developments of working capital being a drag to operating cash flow? What happened and how will you improve from here?
Okay. I'll take that question. Adrian , if you look at our cash flow statement for the nine months, we can make one comment that, you know, the cash flows, the net cash flow from operating activities was slightly lower. If you track them through adjusted EBITDA to down to the operating activities, that there were two one-off items, rollover costs and a settlement, and stock options expense. More specifically to your point on the working capital. Accounts payable were down, and primarily because of spin-off and listing costs of EUR 8.4 million. Accounts receivables were up by EUR 5.6 million, and contract assets were up by EUR 14.1 million.
Those should be the primary sort of contributors to the changes in the net working capital. A quick point about the contract assets. These are essentially unbilled revenues, and these are fully recoverable. Invoicing will be done shortly, and this pertains to just two clients. In terms of improvement that you asked, I think that's one place we will look at to get that going. The second one obviously is that on our receivables position in general, they have kept pace with our growth in revenues. If you look at our results from previous quarters and previous years, our receivables position has, you know, become quite good. Our DSO is just about two months when we look at it. We have a dedicated team that looks at collections.
We also, given that we are a tech company, we have our internal bot that is called Ginger, which sends nudges to all of the client managers that we have to ensure that if we're getting closer to the limits for our accounts receivables.
Okay, there's not much left, so we are concluding our Q&A session with a question or two questions by Andreas Wolf. Manas, are you satisfied with the hiring pace outside India? Do you see the opportunity or need to accelerate your presence internationally? It's the first question. The second question, is the transformation of minorities to group level shareholder on track? Will the shift take place this year as assumed?
Sure, Andreas. To the first point, you know, we have been quite excited to see China ramping up very fast. We have opened a new office in Chengdu, and our office in Xi'an crossed 500 people. We are now nearly 1,000 people in China, so that's a significant step. You know, we had also growth in Sri Lanka, as we discussed in the last call. We are continuing to ramp up our hiring in other places. In Romania, we have a big marketing campaign going. If you land in Cluj, at the airport, you will see our campaign posters and stuff. It's not all uniform.
I think there's a lot more that we can share globally in terms of best practices, in terms of automation, in terms of that sort of scale that we have learned to drive in India, and we are doing it. The hiring team has been reconstituted a bit. It's rather than being more locally focused, it now also has a different direction, a different axis, which is global, and they're trying to share best practices and hiring resources and teams and ideas to hire at scale across the world. Yes, it's a bit India-centric. It is also the nature of the IT sector that India plays a very outsized role in terms of the talent that's available. But we are quickly, you know, catching up and trying to grow our capabilities outside India.
Christian, can you remind me of the last question? I'm a little jet lagged. I just flew in from Germany this morning. Can you just remind me the last, the second part of the question?
Yeah. I was referring to the rollover, Manas. Is the transformation of minorities to group level shareholder on track? Will the shift take place this year, as assumed? Probably good to point out that it has already happened.
Yes, Andreas. This has already happened, and we're happy to say that the current shareholding of Nagarro SE now reflects all those minorities that have been rolled over. There are no minorities at any other level. This has already happened, and I think it's with this, the last major step in the spin-off has been executed, and we're really happy to be able to say that this is now behind us, and we can focus on the way forward.
Thank you, Manas and Gagan. This concludes our Q3 earnings call almost on time in 44-45 minutes. I'll hand back to you, Manas, for closing remarks. Thank you all for participating.
Well, thanks, everyone for joining the call. Again, you know, it's a long journey for us and a long way to go. But we really value your interest in our company and interest in what we are trying to achieve and support along the way. As I said, you know, it's not a quarterly thing. It's not a quarter-by-quarter thing. It's a much longer journey. But yeah, a good quarter never hurts. Anyway, thanks very much. Have a great weekend, and we look forward to talking to you again.
Thank you, everyone.