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Brightcom Group Ltd
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I'm Talsier, moderator for the conference call. Welcome to Brightcom Group Limited Investors Conference Call. The duration of the call will be for 1 hour. We have with us today, Mr. Suresh Reddy, Chairman and Managing Director; Mr. Narayana Raju, Chief Financial Officer; Mr. Peshwa Acharya, Investment Strategy, Brightcom Group Limited. [Operator Instructions] Please note, this conference is recorded.
Before we go ahead with the conference, Brightcom Group would like to mention that during the conference call, certain statements in this call, reflecting Brightcom's future growth prospects, are forward-looking statements, which involve a number of risks and uncertainties that could cause or results to differ materially from those on such forward-looking statements. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the company.
Now I hand over the floor to Mr. S.L. N. Raju, Chief Financial Officer. Thank you, and over to you, sir.
Thank you, Talsier. Hello, everyone. Good evening. Thank you very much for taking time out of your busy schedule to join today's call. We appreciate your interest in deeper understanding of our company's financial results for the quarter ending 31st December [ '22 ].
I'm excited to share the quarterly results of the company as published. Our company, for the quarter ending 31st December '22, have achieved a [ 42% ] increase in revenue and 46% rise in the profit after tax compared to the quarter ending December 30, 2021. Again, an exceptional performance by the team, which is ongoing and [indiscernible].
The EBITDA too, have a growth of around 43%. For the quarter ending December 31, 2022, our company reported a consolidated revenue of INR 2,865.17 crores, and the profit after tax stands at INR 543.93 crores.
Going to the segment-specific information. During this quarter, we achieved a turnover of INR 2,747.86 crores from our AdTech Digital Marketing segment, which amounts to about 42.49 points increase -- percent increase over year-over-year.
And for the Software Development segment, the turnover is INR 117.31 crores, amounting to a year-on-year increase of 26.28%.
[indiscernible] equity front, I'm happy to inform we've had -- as we've been doing, we continue to be committed to improving the ROE. And the ROE for the current quarter has reached 25.16% compared to about 20.7% for the year ending -- quarter ending September 30, 2022, which is in line with our plan. We are committed to employ our capital efficiency and constantly to take this metric higher.
And as of 31st December 2022, we have achieved the operating cash flow of INR 92.41 crores. You may compare to the free cash flow from the previous quarter, which were higher. One thing that we need to keep in mind is, in a great quarter, where usually the December quarter is one of our weakest quarters. And in such conditions and when there is a customer shopping and as things going on, we spend ahead of time. We have to fund the publisher payments and that will block the slots, so we need to pay in advance.
And as the U.S., we pay like we have the payments after 2 to 3 months. So we will get the collections from that in this quarter and forward.
One thing is our continued efforts to invest time and money in building the business, et cetera, various subsidiaries and ensuring that there is continuous growth have resulted in our subsidiaries and rating adequate cash flows. We have been matching our businesses and subsidiaries for some time. Most of the business -- most of our subsidiaries are now generating sufficient cash and not able to see cash that can be returned to the parent company.
This will make us appropriate to put the process in place to get the dividend payout, this extra cash every quarter based on the available amount at the end of the quarter.
And just to inform you that, for the first time, you will be receiving a dividend of INR 5.02 crores from our overseas subsidiaries. And it will be received before 28th of February [indiscernible] cash remittance.
The quarter ending 31st December 2022, our proximal tax rate is 27.10%. For the 9 months ending September 30, 2022, our company has reported a consolidated revenue of INR 6,028.84 crores. We have achieved about 60% increase in revenue and about 66% increase in profit after tax.
Our subsidiary online media solutions has contributed to about 34% of the revenue, followed by [ Demad ] Group at 19%. Frontier data management contributing 13% of revenue. Indian operations contributed about 4%.
Looking at the retail contribution, the North American region, as you saw, our biggest market has contributed [ to 32% ]; south America has contributed to 22%; Europe, 17%; [indiscernible], 2%; and Asia, 2%.
Let me move to [ Data's AG ] numbers. The days outstanding in total receivables as of 31st December 2022, stands at 173 days compared to 131 days as of 30th September 2022. And [a huge increase of about 60% of revenue, we -- and a huge increase of about 60% of revenues compared to 9-month period ending 31st December 2021.
The other major contributors for this increase are the festival and holidays even in the U.S. and Europe, like Christmas, Thanksgiving and other holidays. Second one is the [indiscernible] was at its peak during this quarter. And as per the [ for ] report, U.S. consumer spending has [indiscernible] a 7.6%% increase in the specific season year-over-year when compared to 2021.
The digital advertising industry is expected to reach the $1 trillion mark in 2023 itself as against the earlier [indiscernible] 2026. So this has actually -- one thing that has led to investors, the lot in buying the publishers slots in the publishers that fast and then our sales will also improve.
One by escalations in our January 2023, we are expecting to see an improvement in this year, so by March 31, 2023. For the Digital Marketing season, the current base outstanding is 152 days compared to 129 days as of September 30, 2022.
Number of days outstanding in Software division is 167.7 compared to 178.5 days as of March 31, 2022.
Well, that's it from my side. I now hand over to Mr. Peshwa, our Investment Strategy, to tell you more about our company and the future plans. Mr. Peshwa, would you?
Yes. But can you hear me? Should I start?
Please go ahead.
Yes, please go ahead.
Okay. Okay. Okay. Thank you, Mr. Raju. Thank you. And to follow-up, you have got an idea of our results. First, let me take this opportunity of wishing a very pleasant and good afternoon to all of you. And I have a few points to kind of take you through and tell.
First one, I think it would have already bought through our notifications about the JV, which we have announced. So I wanted to explain one concept called high-growth model.
So what is high-growth model? So the company has decided and then to implement its part breaking hybrid growth model. That's what we call as a high-growth model. And the concept is to find a fast-growing partner in the form of a JV with them by offering the Brightcom brand and expertise and reach. And in return for that, the fast-growing platform is licensed into the JV. This is essentially the concept.
And the upside of the JV is shared in a prenegotiated ratio. The key here is to make sure that the deal is well protected through. We had [ choose ] conflict of interest clauses for both partners. I think this is a key, and this is what we have done.
This is an innovative, if I may say so, maybe part growth model line between organic and acquisition-led growth. The high growth model is effectively capital-light and will result in growth without the need for large capital injections, as would be in the case of an organic acquisition. So this is a little bit of information on what we mean by high growth model.
And let me get into a little bit of detail of the JV, which has been announced. To this end, our company has already announced yesterday, a day before its -- our JV with continued incorporated U.S.A., wherein the 2 companies will pool their respective strengths to grow the Audio AdTech business without involvement as any major capital outflow from our side. And the high-growth model is a very high ROE model, and results of the same will become evident in the coming quarters.
This JV, this joint venture, aims to really drive and revolutionize the out-of-home audio advertising industry, which is right now estimated around $30 billion, by introducing innovative solutions that utilize cutting-edge technology and really offer unique user experiences. This JV will directly benefit Brightcom stand-alone financials, as 51% share of the profit is flowing into the parent, thus further bolstering the stand-alone numbers.
A little bit of in details, I would like to get into about our JV partner, consumables incorporated. So do you know the [indiscernible] advertising technology platform founded by tech innovator, Mr. Mark Levin. That really uses creative ad formats and platforms to offer compelling online advertising solutions. Consumables platform transforms uninteresting impressions into compelling audio advertising engagements.
To give a bit more background, we launched 1 platform in Jan and just scratched the surface in terms of revenue. In February, that revenue doubled. And in March, again it doubled and the path continues. So they ended the year on that 1 product with approximately $30 million, $40 million in revenue. So unprecedented growth rates really, and this is what we are -- this trajectory is what we are expecting.
Consumables is the very admired directed AdTech company in U.S. with a lot of award and has been in operations since the last decade or so. So this is a little bit about consumables.
Next important point which I want to make is new capital has been utilizing the joint venture right away. Hence, cash available in the company can be utilized for other effective growth initiatives as we deem best. For example, AIML, IoT, Quantum computing labs, et cetera, et cetera. We also foresee a very healthy revenue path for the new JV in U.
S. The next slide that -- it's effective and profitable from day 1, hence, profits can be added to the stand-alone numbers. This is important, and there will be no ambiguity about the results, audited results. There is profitability from first year of operation. Also importantly, as with the joint venture, no permissions are required. So [ tax is ] a key point. And of course, it makes Brightcom's stand-alone numbers better, healthier and considerable.
Next point is right now to our best estimate, consumable has around 200 million consumers. And these customers of consumables will be offered right from the -- and to its this advertising partners and publishers. So this is a good one. In exchange, Consumable will get to use Brightcom BCG technology platforms, like Brightcom Compass, et cetera, and also get access to Brightcom publisher network and direct advertisers.
The next point which I want to make is, because we have a 51% stake, majority control and stake is with Brightcom Group. A.
Few other points. I just wanted to share I think already, Mr. Raju has mentioned that in 2023, already, U.S. AdTech industry is a $1 trillion plus. And interestingly, if one looks at the concept of OH and what they call radio audio, this is actually [ 7%, $70 ] billion industry. And if you specifically talk of its audio advertising, what is the effort to the broadcast outside of home, typically speakers, which are located in public spaces.
This type of advertising can take many forms. So I'm just trying to clarify and say a few pointers, which help people in understanding what is this OH outdoor audio advertising we are talking of. So this is just a few clarifications.
Number one, it can be in-store audio. So advertising messages and communication message is delayed in retail stores, shopping malls and other commercial locations. Next one is outdoor audio. Advertising messages broadcast and speakers located in public spaces such as tree, parks and public transportation. And number three, ambient audio. Background means you can find played in public spaces, often with embedded advertising messages. So it actually covers all, and this is a growth area.
And OH are outdoor audio advertising is typically used to reach consumers who are on the go and often also multitasking, which may be difficult to reach through other types of advertising media by delivering audio messages in these spaces. And as advertisers can reach a captive audience and create a memorable brand experience for their consumers and customers. So this is in short a little bit of tenders background to what is outdoor audio.
Thank you from my side. And with that, I hand you back to the moderator.
[Operator Instructions]
Hold on, hold on. I have -- -- no, no, I'm -- you haven't -- this is Suresh Reddy. Let me finish my address to the audience, and then we can go for Q&A. Sure. Okay. No problem. Yes.
First of all, thank you all for being on the call today. I really appreciate all of you coming on the call and the interest you have been showing on the company and the progress that's happening. I'm sure you've already gone through the results in fairly detailed by now. And let me just start off by saying that this has been a drilling quarter for us, the best quarter ever in the history of the company. And we want to see more of this going forward.
Q3 2023 will be remembered by all of us here at Brightcom for a long time to come. It had a lot of things. We'll try to get to the details. But despite the uncertainty in the global economy, our team did a spectacular job. I am personally very grateful for the outstanding work delivered by the teams across the world. So I'm very, very happy about this.
Before I dig deeper into others too, I want to bring a very important aspect in terms of you at the very beginning with us. This is our sharpened focus to bolster our stand-alone parent financial numbers. Basically, we have been growing our subsidiaries over the year. And the stand-alone is slowly becoming smaller and smaller because the rest of it is growing. I think we decided to take a strategic towards ensuring that the stand-alone also grows at the same rate, and the parent company has a substantial business flowing through that as well.
That is the main point I want to emphasize on this call. This is like a take-home point if you want to take one point home, this one, I would appreciate, too, if you can take this back from this point.
Our CFO has covered most of the financial details with respect to the results. Recently, we've completed our long-awaited inorganic growth initiatives for our advertisement to a joint criteria [indiscernible]. Details were nicely elaborated by Peshwa. Unfortunately, we could not have Satish on the call. He had some personal situation, so he cannot be on the call today. So Peshwa substituted. And thank you, Peshwa, for that.
Then I just want to talk about 2 strategic thoughts that we work upon this quarter and at the cost of repeating the point. The first one is bolstering the stand-alone financials, which I talked to you already. This is very important because, how do we go about doing this? What are the different ways to do it?
If you look at it the way [indiscernible] [ October ], we have invested, we have built our subsidiaries over the year, buying them, investing them, growing them reinvesting the capital that has been sort of end back in to the subsidiaries and grow them over the years. It's time to now start figuring out how to get return back to the investors or parent company.
That was -- the first step we thought is, let's take -- gradually figure out a dividend strategy, which is every quarter, we would look at the cash position and the requirements of the subsidiaries and other subsidiary. We decide how much of it to be [indiscernible] in the form of [indiscernible]. So to be spent in the form of a dollar when there will be a tax component prices, yes, it is important that will flow through that to the payment and we're going to get stronger for other mishaps to the point can take or do it back to the shareholders of sales. This is the strategy, something can be had.
It's also, there are some concerns you keep hearing about the cash in terms of view something from that nature. So this will be the best way to establish veracity of the company's profits, apart from tax payments on the one way. So this would be a very welcome step from the company's perspective. The Board will be behind it.
One is the high-growth model, while I don't want to get into as much detail as a talked about. It is a smart way to find leaders or fast-growing companies who figured out the magic some, if you may. Someone may have a technology. Someone may have a market. Someone may have a platform. And if we are growing at a very rapid pace, but we do not have the lease that price on that. We are now [ about to that ] $100 million investment, if you will, [indiscernible] and $1 billion per month if you look at all the advertisements that we deliver. So we have a very large base, plus we have a relationship build.
So we bring a lot to the table. So we go back to the performer shake hands with them and help them grow, obviously take a portion of the. That is a broad idea behind the high-growth model of doing joint ventures because of it. And then we want to do directly in the first concept of [indiscernible] very nicely, where we tied directly with the parent. So it will help the parent reach top. This is broadly the 2 main strategic things that we have worked upon in the last quarter. Other things that are out there, I just want to touch upon.
One is a final settlement been very much in the works. As we discussed a few weeks ago, we would work in progress. We have not just completed it. We do not have a time line yet. We will immediately inform as soon as that is done. So that is I think just like this was done, it took a longer time that we execute I would request the stakeholders to be a little patient with us on that because it is going to be done, it is a bundle except the final execution is taking is that for then coming about garment as we talked about government in the past. There has been a lot of talk around government our predominance practices.
And we have taken about all the points. We are looking at how we can get assets better. And listed companies like us to listen to the feedback. That's very important. We are continuously making amendments to our practices. I assure you, we are doing it aggressively. Those may not be on the process.
And I also want to share that there has been lot of personal criticism on me as well for the social media over the past 2, 3 months, especially. But we have taken all the points quietly and have not responded to them actually for the same eos because feedback has to be taken because when our intentions are honorable and absolutely for shareholders. There's nothing to fight back. It is actually better that we get as a feedback and start into at the process level.
Whatever may be the gaps, the execution of our intentions, we are fixing and we will continue to do so. I just want assure of you about that. We never rebel against negative that will take that. And this is an area for us to become stronger, and we will continue to do so. As it is said by famous other Europe, what does it tie that actually every store. That's the point on the government is work in progress. And governance is not something we can [indiscernible]. It's more in terms of how rental comes across. So that is -- we will -- I guarantee you, you will start seeing a lot more of it go forward.
Other big question that keeps popping up is about the status of the currency project with the regulator. This is dominated discussions around our company. I'd like to make this statement that while the regulator has been very balanced and responsible while examining the matter, I can tell you, we have submitted voluminous amount of data.
It goes on all the way to trial balances even down to transaction level of 10 subsidiaries for 6 years globally. That is the level of granularity is boxes and boxes of data. That ensures our stakeholders that with nothing from us to be today. So we are just waiting for the regulator on the report. And we do understand a time in case because the amount of data that needs to be expended through March.
That's broadly where it is, but we are hopeful the sooner the final result comes out, that is for us. Beyond that, other points, as this would look at some of the questions that came up because of this.
Another point that we did this quarter is we wanted to do comps earlier because what happens usually to me, we can then do a call after 4, 5 days, a lot of formulations happened, gets driven in the wrong direction. So it not make sense for us to give a perspective so that it will be [indiscernible] in the shareholder [indiscernible] in the right way.
Now one more does is look at the questions that have been sent today. Yes, there is a couple of questions. There are a lot of questions, but I'll try to see.
One about the operating cash flow. I think the operating cash flow -- the operating free cash flow this quarter is INR 92 crores compared to the previous quarters, [indiscernible] little bit lower. It is the way it was because of the gap between what we receive in time and the payables time. The receivables was basically are the range of about 90 days and then we pay every month. So when we have a large quarter like the quarter we had, obviously more cash is the free cash flow in the quarter. But that doesn't mean anything, the cash starts coming in the next quarter. So we're already seeing some of it happening in general. That is the point to be taken into account.
And same point with regards to why the expenses have gone up. Fundamentally, our expenses, our biggest expense is the cost of buying media, which is a turn around [indiscernible] a short. So when we do more top line, obviously, we'll do more bottom line in line with that. That is the [indiscernible] answered.
And there is a question regarding the -- just I think we covered all that, non-settlement audio company-wide. So I will stop here. And then let's take that question. Yes, right now, I think, operator, you can go ahead and start taking questions. Sorry to have interrupted you.
Thank you, sir. [Operator Instructions] First question comes from Vaib Kari, an individual investor.
Hello? Can you hear me?
Hello? Yes, Mr. Vaib, go ahead.
And congratulations for the spectacular numbers. Also as we see, like the [ Masa ] increasing on BSE, a high growth in the number. But if you talk about the market situation on the stock price, it's somewhat bigger going in the direction post something, which all the [indiscernible].
So sir, one of the reason why we are seeing this is because of the currency foreign issue. And in the last conference call, you asked the question, like if it is possible to hire independent auditor, which can audit all the questions which are asked, maybe including the impairment issue.
So whatever is the work which is doing? If we can hire our own auditor, who can perform the same task? And we can publish those results to the benefit of all investors. So is that option was discussed?
I remember now, yes. Yes, I remember you talked about that. So we did not go ahead with it because I think it will be challenging the regulator in also. So I think we would wait for the auditor to come back. I don't think -- you have to tread very carefully on such matters. So I was advised to this wait for the radiator to come back on that. Well, we did discuss this. I remember very clearly it's in the last call.
Okay. But sir, we do not know like how long like...
The other question share size and things in that. Like I say, it takes [indiscernible] interest to make a book. We are all doing a lot of bright things in the right direction is we're making these changes. We currently see the effect of the entire book. So I'm very positive. Nothing to worry. Everything really come together at the lifetime. Yes, there is a little bit of [indiscernible], and that's the way to. But I'm sure [indiscernible].
Okay, sir. And sir, again, maybe asking the same question again. But like from your side, as you can have the same confident that the parent audit will come [indiscernible].
Yes, yes, [indiscernible]. Like I just said that we are very confident. And given, we have nothing to hide. We have not done anything wrong. There's nothing to be upset, but that is our take on the case.
Okay. Okay, sir. And one more question maker. So the joint transfer has been formed, but that surely we said like this has been fall without any capital infusion. So how is that possible? Is that like a stock-based deal where we have paid some stock Yes.
Let me explain that in a little more detail. custom. I think Pasha talked about the overall the members on [indiscernible]. So 51%, 49% fixed [indiscernible]. So what is done is there is consumable ink as a company to be on group by the company. And then we create a new company, which is the joint, a new business or it's just in terms of a technical structure. There's nothing new there in terms of technical successes.
This will start, the joint work that will be done will be done through this entity. So what we are doing -- what we plan to do, their expertise is coming up with very slick tech solution, like [indiscernible] talking about the [indiscernible].
Revenue, they did one of the products in January and doubled every month after that. By end of the year, they were doing $3 million a month. So I think we ended up with some $30 million, $40 million on that. So they're very sharp. Their whole idea is make it frictionless, make it easy for advertisers to sign up and see results. They are very, very sharp and clear about it. And we feel that it is a great skill to be able to do that in all kinds of mind.
Now coming to the other side.
[Technical Difficulty]
Yes, participants kindly stay connected while we connect the management team back on the call. Please go ahead, sir.
Yes, okay. Thank you. Thank you. And my apologies. I got another call. I was trying to turn this off, and this got disconnected. So yes, so I was telling that our contribution to the joint venture is our size in terms of the 100 billion impressions we have, the publishers we have, all those good things we bring to the table and the expectation we've built over the years in the consumers community that we operate in.
These 2 things together, we bring to the table. Then we have our CFO, the CEO, and we own 51%. So we have 2 Board seats on that. They have 1 Board seat.
And then working capital requirement. The first 5 million we have gone has to get, but then it's just working capital into it. And that is the cash outflow, if you may exactly look at it. But then after that, the business starts to generate. So this is broadly the technical structure of the deal. Does that answer your question?
Yes. So 5 million working capital, which means that 5 million, we are providing on day to like a operation or something like that?
As we see, because mainly the options against our buying from the audio publishers. So for which, working capital is to start -- to jumpstart the growth.
Okay. And when do you think these like numbers, revenue and profit will be added to the stand-alone entity, like starting...
Right away, right away. See, if we made revenue this quarter, let's say, next 2 months, that will be added in the coming quarters right away.
Okay. Okay. Okay, sir. And sir, last question. So like we have talked about days receivable, right? And like the days receivable has been quite high. So even in the software segment, like I think around [ 160 ] or something. So why like in the software segment, the receivables are high. okay, like in the AdTech in the season compare it to the ad tech division like the trade in here.
Even in the software division, the receivable a lot [indiscernible]. Why did you think that had to be?
Because we work with some of the investors, we bring some of the software work for them. So it's a long collection top. So to some of them just get stalled and the mass the overall average, that's all of it. And then just one fraction. So the entire class is 4% of the revenue. And so we do that for a lot of reasons. And so we'll continue to do that. So it's not a big dent to the overall [indiscernible].
[Operator Instructions] We have a question from Supreet Ravu, an individual investor.
This is [indiscernible] from Revolution. Now on a lighter note, I think I can start by telling you, when you declare the results, you have declared it only, that's nice. But I think the time also should be earlier because 4 lucky investors are waiting till 12 midnight to get the results. So I think I can eat a bit earlier so that we can spend time with our families and enjoy the results.
No, no, no, I have accounted to that. Mr. Ravu, I have a accounted to that, in all in good humor, of course.
The fact that we have pulled back by, what, 15 days, roughly, so making you guys wait for a few hours is not so bad. I think it's okay. [indiscernible]
Now coming to the -- there are...
[indiscernible]
Yes. Yes. Now I think we have reached 100 billion impressions, as you said. So now we had already, when you had reached 90 billion impressions, you had said, but soon, we will reach 100 billion. And we will -- if something to come for test about, had nothing regarding the 100 billion impressions have been mentioned in the retina or this. I think we should proclaim such kind of achievements loudly and clearly to the market.
It's complicated because, see, this particular market -- let me expand a little bit more. So what has happened is last year, the growth was different. This year, the growth of business. Last year, it was all within the AdTech industry, advertising is sold in various forms, right? You have the CPM, which is based on impressions, which is the brand spend, which is the higher quality spend.
The next one is the CPC, the click-throughs stuff, which depends upon the performance of the media or the publishers. So that is the next layer.
And the third level is your CPA, which is cost per active use, where you just run the ad, there is no performance of either a sale or a lead just rated or some sort of an action, and no money is paid.
So just -- so this year, since the market has changed, the team very aggressively went into all knowing already that. So obviously, the number of inflations will spike up when you start doing nonbrands. So it's not comparing apples-to-apples. And so we were really reluctant to come out and say, okay, tell you have cost [indiscernible] 100 billion impressions, because it's a mix of all this. If you compare apples-to-apples, then it's much easier. We crossed way over it in that sense.
So again, you have to look at the effective CPM transaction. So it just gets tough technical and complicated. So the team said, "Let's hang in there, wait for a little more. And then when we feel comfortable, we will come out." We'll actually do that in the presentation as we do that. [indiscernible] not been talking about it, obviously, to give the size of the network that we -- but your point is well taken [indiscernible].
-- yes. Yes. No, last question [indiscernible], or a point to make is that Q3 was remembered for bolstering the stand-alone profit and a stand-alone company, right, and of course, the Audio acquisition. So like Q4 will be remembered for some lot of each or buying and support by promoters and good presentation to BII and FII and broking them in.
We will try, sir. I'll only tell you after the quarter.
Okay. And congratulations again.
Thank you again. Thanks for being on the call and asking your questions. Appreciate it.
Next question comes from Rajan Bave, an individual investor.
Mr. Suresh Reddy, first of all, congratulations, like fantastic set of numbers for quarter 3. I guess most of the questions I have answered -- I guess most of the question you answered on cash flow, and I need to ask you the shareholding pattern, management exposure quite well. But how much time will get -- take back this year?
Let's see. We are working on it. I don't have a clear time line for that. Let's see. Let's look at this quarter, maybe next quarter, I'll be able to answer that. Let's see how that plays out.
o1 Because the market is really looking forward to you if you can increase your holdings, it will be very positive growth.
Point taken. Thank you.
Okay. And please settle down as soon as possible, yes. Thank you.
Yes. Thanks a lot, Mr. Raju. Thank you.
Next question comes from Bhupi [indiscernible], an Individual Investor.
[indiscernible] congratulations for the excellent numbers in this quarter 3, the highest so far. We're seeing many milestones in future to come.
Yes, sir.
I have 2 questions, sir. First is, since now BCG has sufficient free cash flow and reserves, do we have any plans to buy back the shares so that to boost the investors confidence? That's number one. And number two, about reaching to the domestic audio market since Consumable Inc. has already been formed now. So a lot of scope is there for the domestic appreciation in the Indian market. So these 2 questions, sir.
Okay. Very good question. I'll answer the second question first. That's the easier one. So definitely, we are showing with the idea of India for this particular city. If it makes sense, maybe not just India, the region all over because we are a community who is always outside eating trends and things like that outside. We set out have come excellent, some travel and all that. So there's a lot of outdoor activity, and music is very much part of our partners. So it makes tremendous sense is one of the things that we already discussed with Mark Levin also.
But we first want to establish the working relationship between both the companies will take a good 6 months. So we don't want to have too many confusing patterns in the first 6 months. We want to go after the U.S. market. He is already working very aggressively on bringing together all the right partners to make that happen. So we are very excited about it. Satish will be part of that initiative. And then at the appropriate time, after a year's time, then we'll start looking at other markets.
That is the strategy because I don't like to spread out to key things in too many markets and then if it makes it harder to indicate. So that is point number one.
Coming to your first question, you asked about buyback of -- you said about buyback, right?
Buyback of shares, yes.
Yes, buyback of shares, yes. See, the thing is we are at the world of a lot of great ideas that are coming together for bringing tremendous growth for the company. The TV capital badly utilized. If we go back, we have raised money and then I can go back and buy back. Does it sound right? While I agree with you it makes sense, a little bit of a buyback is not bad. But if we start using the funds to do that, we should actually use the funds to grow this reporter. And the opportunity is very right. And we see because we are at the front driving this, we can see -- and we are seeing that in form of results also. The growth rate has is phenomenal. And I think '23 and '24 are going to be very, very huge, and we don't want to take die off the ball. And we need to be full with cash where we can make the right move for the right opportunity.
So it's important to keep the cash and look for the right opportunities to invest. So there is no point trying to play the market. While I said there are -- like I'm just talking to another caller before you, we -- there are multiple things we have to do that will help the market. This buyback is not a solution. That is the last forced feet. I feel you improve your government. You improve -- get your -- all your apps in place, start doing things, start getting better and less to come on board in terms of domestic large institutions. These are all things that have to happen.
Buyback is an easy solution. It is like you're going in there, taking the liquidity out and helping it. That's not sustainable. And we don't feel that there's the same hole there.
Buying a little bit to give some impetus is not bad, but I think that is not a long-term position. That is my take. And I'm open to debate on that. But at this point, that's how we are thinking.
Next question comes from Akshay Manuka, an Individual Investor.
First of all, congratulations [indiscernible]. Yes, first on congratulations, sir. Sir, I wanted to ask 2 questions. First is if [indiscernible] results come after 3 years, what we are going to book the investor? This is first. And second, where we are seeing a company after 2 years revenue-wise?
See, we don't give guidance -- and the first question, I'll answer later. We don't give guidance for 2 years in a row because it's a very dynamic and it's a technology market. sorry?
Yes. Yes, yes, yes, go ahead, sir.
Did you finish your question? Did I cut in? Did you finish your question?
Actually, I wanted to ask you, sir, where we see up to 5 years, 2 to 5 years?
Go ahead. Okay. So this is actually -- I think I mentioned that on a previous shorter call that we had done also. I gave the example of the open AI. So it's a very dynamic market. We have to keep in mind that can save things over good technology, good solutions. Good team, good investments on the right partners are important for a tech company to survive and flourish. If you do anything else, you get into trouble.
If I come back and say I'm going to go to this $1 billion of this number of things, that's not the way it is. It's about creating solutions that the market wants and innovate it. So we are investing on innovating, as you are well aware, we are looking at quantum computing. These are things one needs to do. One good solution in quantum computing can bump it to $5 billion not in 5 years. And I'll be saying $2 billion to you for the sake of giving you a number, and I'll be wrong. I mean, in a positive way. So you never know how the things in place. So as a tech company, innovation and good products is very important, good teams that can execute and deliver good report.
So we are trying to strengthen that whole key market. Whether it is through good partnerships where we can learn and they can learn from us. So mutually, we will help grow where we can come up with better solutions and better products.
Plus in-house, we are building a strong team of developers, some team of innovators within the company, plus people on the ground. We always believe that same play guys who go out there and actually sell have the best pulse on which direction the market is trying to go.
So that feedback also comes back. And our CTO sitting in [ Israel ], he's got rapid prototyping teams that can go in there and actually develop solutions based on the market, what the market is looking for. And if there's a solution for it, that's an opportunity for us.
So these are some of the strategies that we have in place. Now I know it's a very long answer, I'm sorry. But I think only I'm starting to do like a yearly number. It's actually helping the team also have certain goals to go after.
So for example, this quarter, the team really wanted to meet the numbers and reach the numbers that we are committed to the take hold. So that was good.
And so we'll see, again, some April, we look at how the market is. Again, the whole world is changing very rapidly. Different markets, Europe, U.S. and all over. And I see opportunities, but there's a lot of gloom and as well because some of the large players are having trouble.
So as we -- as a company, we are very careful in putting unnecessary expenses and stuff like that. So we would not see announcements from us saying whether we got to some people and things of that. We try to be very careful and take gradual steps, a little more conservative in creating spend better. So these are some of the things which give us tremendous brand page in the marketplace. When situations like this arise, where we would be the first mover, plus if we have cash in the bank, we would be able to take good advantage about that.
Who knows? It's very hard for me to give you a number for 2 years, leave along 5 days at this point. But my goal for the company is to make a brand to reckon with on a global state. Today, you close your eyes and think about, first, you think Go will now maybe at GPT. If you think about trend, you think Facebook or you think WhatsApp or in staff. On that level is what we want to be. How do we get to that level? What is...
Yes. Great to hear, sir.
Our strategy. That is what we have planned.
On my first question? Hello.
Hello? Yes, go ahead.
Yes, sir, my first question was, if [indiscernible] comes after 3 years, so what is the plan B so that investors get boosted?
Currently, it in terms of information to be given and such incorporating very actively with the active to not on that. And we have...
Can I give addition?
And we will continue -- like it doesn't matter. We'll come to...
[Technical Difficulty]
I'm sorry to interrupt you, sir.
Please go ahead with the...
Hello?
Sir, your voice is breaking, sir.
Okay. Is it audible now?
Yes, sir.
Yes. Sir, I have one suggestion for that. Hello?
Hello.
Hello? Hello? Hello?
Please go ahead, sir.
Hello?
[indiscernible] you are audible.
Can we bring audited results of subsidiary this year, this financial year, so that it will be a boost to our investor? Can this be a plan B against [indiscernible]?
On that, I see we already talked about in our previous call. So we are waiting for certain things to come. Settlement [indiscernible].
That would be the last question for the day. Thank you. Thank you, sir. Ladies and gentlemen, this concludes the conference call for today. Thank you for your participation and for using Door Sabha's conference.