Matrimony.Com Ltd

NSE:MATRIMONY

Earnings Call Transcript 2024-Q1

[Operator]

Ladies and gentlemen, good day, and welcome to Matrimony.com Q1 FY '24 Earnings Conference Call, hosted by ICICI Securities. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Abhisek Banerjee from ICICI Securities. Thank you, and over to you, sir.

[Abhisek Banerjee, analyst]

Hello. Welcome, everyone, on behalf of ICICI Securities to the Q1 FY '24 earnings conference call of Matrimony.com. Thank you -- First of all, thanks to management for giving us the opportunity to host the call. We have Mr. Murugavel Janakiraman, the Chairman and Managing Director; and Mr. Sushanth Pai, the Chief Financial Officer, who are attending the call on behalf of the company. First, I'll hand over to them for opening comments. Over to you, sir.

[Murugavel Janakiraman, executive]

Thank you, Abhisek Banerjee, for running our call. As we [ stated ] in our quarter 4 call, our growth momentum has picked up in quarter 1 as compared to quarter 4. We've also shown acceleration in profitability in quarter 1. In quarter 1 on a consolidated basis we achieved a billing of INR 124.5 crores, the growth of 2.9% quarter-over-quarter and 6.9% year-on-year. Revenue was INR 123.3 crores, a growth of 7.7% quarter-over-quarter and 6.3% year-on-year.So basically on a billing basis we almost reached a threshold of [ INR 500 crores ] [Technical Difficulty]. So the next milestone, big milestone for us we'll [ reaching ] INR 1,000 crores within the next five years or so.The key highlights for the matchmaking business are as follows. Billing at INR 122.1 crores, a growth of 3.8% quarter-over-quarter and the 6.6% year-on-year. Revenue at [ INR 120.6 crores ], a growth of 8% quarter-over-quarter and 5.6% year-on-year. We had at 2.8 lakhs paid subscription during the quarter, a growth of 6.9% quarter-over-quarter and 11.5% year-on-year.We continue to track the impact it creates for our customer. We're happy to say that we [ create ] about 27,800 the success story in quarter 1. I'm also happy to share that Matrimony.com has won ET BrandEquity Shark Award for the Best Use of Digital Social Media for it's AI-based Valentine's Day campaign.Now, coming to the marriage services business, revenue was at INR 2.7 crores, a decline of 5.8% quarter-over-quarter, and a growth of 49% year-on-year. Losses, the quarter was INR 3.1 crores, same as last quarter.And the billing and revenue outlook for quarter 2 as follows. Matchmaking billing revenue on year-on-year bases expect to show high single-digit growth in quarter 2, but the decline compared to quarter 1 as quarter 2 is seasonal quarter.On wedding services, the growth [ we ]expect with similar level and the loss [indiscernible] will be at -- [ of ] similar levels in quarter 1.Let me now pass on to Sushanth to comment on the key profitability [ highlight ].

[Sushanth Pai, executive]

Thanks, Muruga. Firstly, I would like to provide an update on the ongoing Google case and implications on our financial performance. The company had filed a commercial suit in the Honorable Madras High Court against Google LLC and its affiliates, challenging the service fee charged under the Google Play developer distribution agreement effective from 26 April 2023. This was pertaining to payments made by company's customers for in-app purchases downloaded under Google Play Store. In this regard, the company among other release, sought for injunction from the Honorable Madras High Court against delisting company's apps from the Google Play Store. The Honorable Madras High Court restrained Google from removing or delisting the mobile apps of the company in the Google Play store in India.However, on August 3, 2023, the Honorable Madras High Court rejected the [ plaint ] filed by the company. So the company -- we have filed now an appeal. The company has filed an appeal challenging this order.Now, pending the outcome of this appeal, we have made the best estimate for the quarter and recorded a provision towards this disputed service fee. This is the main reason for increase in other expenses in our financials. Despite this, and also having employee salary increments of about 7% in the quarter, we have shown growth in profitability, both on a quarter-on-quarter and year-on-year basis.Our EBITDA margin for the matchmaking business in Q1 is at 24.1% as compared to 21.1% in quarter 4 and 23.5% 1 year ago. This is a growth of 23.5% quarter-on-quarter and 8.4% year-on-year. Marketing expenses are at INR 43 crores as compared to INR 45.3 crores in quarter 4. So we have optimized well on this front.Excluding marketing expenses, our margins in a matchmaking are at 60% as compared to 62% in quarter 4 and quarter 1 of FY '23. On a consolidated basis, our EBITDA margins in quarter 1 are at 17.2% as compared to 15% in quarter 4 and 17.6% 1 year ago.Tax rate in the quarter is at 23.2% as compared to 15.7% in quarter 4. The tax rate has now come to normal levels. Just to refresh, the lower tax rate last year was due to lower tax on realized gains on mutual funds, which were redeemed to fund the buyback amount. Profit after tax is at INR 14.2 crores, a growth of 24.2% quarter-on-quarter and 18.5% year-on-year.Share of loss from Astro-Vision, which is our associate company, is INR 8 lakhs. Our free cash generation has been robust in this quarter at INR 23 crores for the quarter.Return on capital employed, ROCE, annualized is about 21%, has increased from 16% in quarter 1 of last year and quarter 4. Our cash balance is at about INR 350 crores.On the outlook for Q2 margins. Our profit after tax in quarter 2 is expected to be better than the levels of quarter 2 of FY '23 -- quarter 2 of last year same quarter, even if we need to consider a provision for Google case, and that is dependent on the ongoing litigation. We are also working on certain litigation measures to address the impact.I would like to end with the customary Safe Harbor statement. Certain statements during this call could be forward-looking statements on our business. These involve a number of risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements. We do not undertake to update any such forward-looking statements that may be made from time to time by or on behalf of the company, unless it is required by law.Now we can open the floor for Q&A.

[Operator]

[Operator Instructions] First question is from the line of Prakash Kapadia from Anived Portfolio Managers Private Limited.

[Prakash Kapadia, analyst]

Couple of questions. If I look at ad spends, they are at 8 quarter low at 36%. So wanted to get some more color and clarity, what has changed? Have industry dynamics become slightly favorable? Or is there some change at our end to do ad spend from a measurable ROI perspective? What has changed? And can this trend continue? And given that we've seen billing and what Muruga and Sushanth just mentioned in their opening remarks, Q2 should be better in terms of profitability and growth. So how does the year look like? Because historically, if I see, we've had INR 19 crores as our best quarterly profit. So do we think we'll be able to cross this if this spend in ad spends is muted and that keeps on decreasing as a percentage of sales? So these were my questions.

[Murugavel Janakiraman, executive]

Thank you, Prakash. In terms of marketing spend, so, our last quarter, while we planned for some marketing campaign, that we did not execute. And that -- we are launching a new version of Bharat Matrimony and we're launching a new campaign soon -- very soon. So the marketing spend will come to earlier levels. So that -- it's last quarter, one of the quarters. And in terms of the profitability, the profit would have been much, much better, if not for the provision which -- on account of the Google related issues. So in fact, if you look at other expenses, [ other ] expenses moved from INR 16.3 crores to INR 20.7 crores, almost INR 4.4 crore increase other expenses. Most of the expense is on account of Google related thing. So if not, the profit would have been much, much, much better. So -- but in terms of the things, yes, we continue to [ have ] the growth. The market is probably moved to the earlier levels because of the [indiscernible] already made.

[Prakash Kapadia, analyst]

So, if I understand this correctly, Muruga, you are saying there was some deferment because of the new campaign. It's not necessarily reading in terms of industry dynamics have changed or some major change at our end where we are doing measurable or calibrated ad spends depending on the ROI or to reduce customer acquisition costs at our end. Is that understanding correct?

[Murugavel Janakiraman, executive]

[ Exactly ], yes. We definitely look at the marketing. A lot of growth in the marketing, we look at the new things. So definitely the marketing spend, we look at the various outcome. Yes, the industry thing as far as -- nothing has changed. The country remain at a similar level. It's more of the campaign which you talked of. We didn't [ execute ] it, and we'll be [ executing ] this quarter. [ Average ] industry, the level of competition and the marketing spend remains more or less the same, Prakash. [Technical Difficulty]

[Prakash Kapadia, analyst]

So only offset to marketing spends could be when revenue growth becomes higher, that could reduce as a percentage of sales?

[Murugavel Janakiraman, executive]

[ Absolutely ], yes.

[Prakash Kapadia, analyst]

But this INR 44 crores, INR 45 crores kind of run rate is fair to expect?

[Murugavel Janakiraman, executive]

Yes. Exactly.

[Operator]

[Operator Instructions] Next question is from the line of [ Mani ], an Individual Investor.

[Unknown Analyst]

I wanted to understand a couple of things. One, currently, what percentage of your revenue would be dependent on Google Play Store or even, say, app and the other channels which are website and physical? So that is number one. And number two is, if you can explain what is the current revenue sharing agreement with Google? Like did we have to pay a fixed yearly fee for listing? And now, for example -- I mean, if we assume that the complaint -- sorry, the appeal that we have filed in the High Court does not go through, what percentage of revenue do we -- are we looking at sharing on a recurring basis that will become like a standard cost that we have to pay Google, and also at the other places? So these are the 2 things that I want to understand.

[Murugavel Janakiraman, executive]

See, let me answer on the Google agreement. Google has, what we call a developer distribution agreement. There are various tiers there. It's not like a single line rate and all of that. There are the various [ tires ], various percentages. Right now, since we are under the process of litigation and also very sensitive, we are not doing any further comments on this particular tier percentages and all of that. However, therefore, it is not like a single line easy statement to be referred from the Google developer distribution agreement. So obviously, there is a percentage. However, based on the reading -- because we have an ongoing litigation and there is nothing certain about all of these things, based on our reading, on the best estimate basis, we have made a provision on this particular case.And based on this, we have given you some broad guidance in terms of, even if we include this, what would be our profitability level in quarter 2. I think that's the way to read this whole Google case.The other thing is, Google also has said that only in-app purchases will be covered under this agreement. So for us also it differs on a month-to-month basis, right? We can't control how many people are actually under in-app. Some will be outside, some will be through website and all of this. So the percentage sort of differs on a month-to-month basis. So broadly, not all revenue goes under this Google distribution [ case ].

[Sushanth Pai, executive]

And like we also said that we are also looking at various measures to mitigate this impact. But even if we consider the impact, I've mentioned to you that our profitability will be better than what we achieved in quarter 2 of last year.

[Unknown Analyst]

Sir, I had a couple of more things. One is what percentage of our revenue would currently be dependent on Google Play Store or app compared to other channels? Number one. And second thing is, you can also explain in the same context the 4% number that you had mentioned in a recent exchange announcement. If you can just explain that also, that will be helpful.

[Sushanth Pai, executive]

Yes. So, broadly, there is a range. We believe it is in the range of 35% sort of a number, 35% plus, the in-app purchases. But like I said, it will differ on a month-to-month basis. The 4% number that came in was only an interim injunction. Now since [Audio Gap] -- The 4% was only an intern injunction given by the court.e

[Operator]

Next question is from the line of Kunal Shah from Carnelian Asset Management. As there is no response from the current questioner, we will move to our next question from the line of Pulkit Singhal from Dalmus Capital Management.

[Pulkit Singhal, analyst]

I have a few questions. First one is on the revenue growth on a quarter-on-quarter basis. We have seen a strong quarter-on-quarter revenue growth for now 2 quarters. 4Q was 4%, I think, in matchmaking and 1Q was 8%. Is there anything to read in this from a structural basis? Or would you attribute it purely to seasonality?

[Murugavel Janakiraman, executive]

No. Actually, we are considering to execute things. So with the come -- Q2 and definitely -- Q4, Q1 is definitely the better quarter, plus also we continue executing. The [indiscernible] is now seasonality, plus also our execution, things which [ we ] are executing.

[Pulkit Singhal, analyst]

And, I mean, anything from, I mean, industry perspective? Is the industry itself picking up? Or is it -- would you largely attribute it to your own execution?

[Murugavel Janakiraman, executive]

Not sure the industry per se, because -- so I think we are executing things, we are driving things. We expect to continue to drive the growth momentum on our matchmaking business. So I'm not sure whether -- what others are kind of -- we have to wait and see how that is -- [ others ] are doing audits. But it's more of -- more than [ intensity ], it's more of how you are executing things.

[Pulkit Singhal, analyst]

So, I mean, the question really is, I mean, you had usually single-digit revenue growth in the last 5 years, barring FY '22. Is there anything that you see that gives you confidence of being able to deliver a double-digit growth now because of things that you're doing differently or -- I mean, because every time we talk about double-digit growth, but it comes at a single-digit. So that's why I'm trying to -- from an annual basis.

[Murugavel Janakiraman, executive]

Absolutely. I think we are slowly inching toward a double-digit growth. In Q1, we see the high single-digit -- Q2 [ we've seen ] high single-digit growth. We may touch possibly on -- possibly, I don't know, maybe. I think it is the growth rate what it can -- take it. And we definitely are moving to that double-digit growth trajectory wise.

[Pulkit Singhal, analyst]

Secondly is on the A&P cost. We went from INR 56 crores to INR 182 crores in A&P over the last 5 years. The entire incremental A&P of INR 126 crores that we spent -- in fact, we didn't even recover it from revenues. The revenue increment was only INR 120 crores. So I know we attribute it to competition for being one of the reasons. But 2 questions here. One, how are you even effectively evaluating your ROI here? I mean, how does it make sense to spend INR 126 crores incremental without getting corresponding revenues?And secondly, when you talk about competition, actually, Jeevansaathi's competitive intensity seems to have [ peaked ] out 4 quarters ago because their financials are getting better, the losses are coming down for the last 4 quarters. So I'm surprised you're saying that the competition intensity is remaining high.

[Murugavel Janakiraman, executive]

So, if you look at, thing -- the marketing spend -- increase the marketing spend, actually, every market, the marketing spend is much more than required level because of -- everybody wants to market. It's more of what is required to spend, when you will be [ skipping ]. It's more of everyone need to up their -- the market -- It's more of people are spending much more than every market what is required. So we are -- also need to [ set ] to the marketing. That's the number one [ scenario ]. Number two is that Jeevansathi reduced because Jeevansathi did their campaign in [Technical Difficulty]. They are even campaign in South India and all. With the [indiscernible] and this training, you need to [indiscernible]. They are not grown. If you look at the Jeevansathi and all, they have sort of de-grown the company's revenue [ what they have now ].When they are [ supplying ] for the market, [ deducing ] the market in some markets -- so they have to change their business model [indiscernible], but they also -- revenue has gone down, not gone up. So if you read that revenue there on the [ account ]. So -- yes. So that's it, more like market spend is there. While the Jeevansathi one of the players, there are other players as well. So there are the other #2 to player as well. Across India and not take one player because there are -- this category has one more player of -- so marketing spend we are looking at across India.Everywhere the marketing spend is more than -- we believe it's much more than what is required. It's a more of increased marketing spend happening. People are hoping that will -- given the growth, market -- so it's I think same in [ winter ]. Marketing is one of the -- one lever in the business -- that's the one [ and only ] lever. So at this [indiscernible] spending higher amount of marketing, mainly because that is created by the increased competition. Tomorrow the [ industry ] reduces, we also reduce the marketing spend.At this point of time, it's not the case. So we have to continue to spend this level of or even request at higher level also. Well, Jeevansathi -- since you've mentioned about Jeevansathi, they are only in [ Northern states ]. There are other players, there are larger markets, [ meaning ] a good example marketing.

[Pulkit Singhal, analyst]

Last question is on the app itself. We are doing some analysis, and our app ratings for the core app is lower than both the competitors in both the platforms. At the same time, I noticed that the number of versions that we had, the refreshes are lot lower in terms of the intensity every month, or every 2 months. In fact, the other apps do it a lot, lot faster. So I'm just wondering, I mean, we have such a huge employee base. We talk about tech, but -- and we have dominant market share, but our app metrics are not reflecting that. In fact, most of the reviews are quite bad, the recent reviews. So your comments on that?

[Murugavel Janakiraman, executive]

If you look at thing [ for us ] that -- you look at regional apps, be it Tamil, Telugu, Kerala, Punjabi, all our regional app -- because for us the regional apps are much more stronger. Bharat Matrimony [ itself ] is one set of the market. But the regional apps are -- we have Tamil Matrimony in Tamil Nadu, Telugu Matrimony in Andhra. If you look at all the regional apps, the ratings are much better, all at 4.2, 4.3 [ rating ], it's all the regional sites, which is expected to go live very soon. Post the launch we see that we'll have one of the much better app, product compared to your other players in this category. Once this goes live, we see that the [indiscernible] will be much -- because the more of -- it's a big change, a fundamental change in terms of the old things getting [ outreach ]. So it's more of [ worked ] on -- we've almost literally been working on it for a very long time. So now [indiscernible] the refreshment rate is much high.

[Pulkit Singhal, analyst]

Just one quick question on this Google, I mean the expenses. Suppose this was to be normalized. Suppose we lose the case, and this is supposed to be -- so does this get reduced from revenues? Or would it continue to be added in other expense? How does the accounting work typically? Right now we have made it as a provision.

[Murugavel Janakiraman, executive]

It will be in other expenses only because revenue is separate with all other expenses.

[Operator]

[Operator Instructions] Next question is from the line of Sonal from Prescient Capital.

[Sonal Minhas, analyst]

Sir, my question is with regard to this litigation we're having with Google. So just wanted to understand, you mentioned to somebody -- questions before me that roughly 35% of your top line comes -- is linked to Google. Just wanted to understand the materiality of the impact if this expense was to be regularized? How much margins basically would be shaped out, as we speak?

[Sushanth Pai, executive]

Yes. So, like I alluded to earlier, because it's an ongoing litigation and there are various sensitivities involved and there is a service fee involved, and -- like there are various rates. The DDA is not like very straightforward and all of that. We have provided on the best estimate basis for the quarter what we believe is right, okay?So what we have mentioned is, if we continue to provide for the next quarter as well, in spite of that, our profitability will be higher than what we achieved in Q2 of FY '23. We have also mentioned that maybe the other expenses increase is also because of the Google case, what we are pursuing. Therefore, because of all the sensitivities, we are unable to give you exact amounts and all of those things.Once the case becomes a little more clear and there is some more direction on it -- because as you have seen, we made already a couple of stock exchange disclosures, which is changing very dynamically. So the [ plaint ] was rejected. We have filed an appeal. The appeal is coming for sharing soon. So it can go into various stages as we go along.And therefore, because of the sensitivity, we are now saying -- we are giving you broadly what we believe will be a profit guidance in spite of including the Google provision. Obviously, if the Google provision is not included, it will definitely be higher.

[Murugavel Janakiraman, executive]

Also, there is multiple forums, also -- [ CCI ] also. The DDA already going the [ verdict ] on this one. But again, this is also been disputed by Google and all, once again, even to the players with -- all the people who are with -- [ filed ] with CCI, so and so. I think [ they ] went back to CCI on kind of -- in our view that Google has been not following the CCI orders, which mentioned that Google should not be selective or [ predatory ] in terms of the Google [ billing ] choice. So the -- [indiscernible] is the multiple...

[Sonal Minhas, analyst]

Sir, I have a second question. Any specific subjective guidance on the billing which has gone up by 2.9% quarter-on-quarter and 6.9% Y-o-Y? Is this low -- is this quarter-on-quarter growth low? Or is this like kind of a seasonal number and this number will ramp up as we go further in FY '24? If you could just guide a little bit more subjectively of that?

[Murugavel Janakiraman, executive]

Yes. Definitely -- well, the Q2 is normally a seasonally slow quarter. But actually, we see that year-on-year growth definitely inching towards double-digit growth. I think thanks to the various steps what are taking, various initiatives what are...

[Sushanth Pai, executive]

Yes, I just want to add. The numbers you've seen 2.9% quarter-on-quarter is on billing. But if you see revenue, right, even in matchmaking, our -- your momentum has improved considerably. Like, for example, it has improved 8% quarter-on-quarter growth. So which is almost like a high single-digit sort of number on revenue. So I think that's a good number, or that's a good outcome for quarter 1. Obviously, the consolidated billings of 2.9% you're saying also has marriage services, which sort of came down a bit this quarter because of various measures we are doing and creating a better ecosystem. But on matchmaking, I think the revenue momentum has continued reasonably well on a quarter-on-quarter basis.

[Operator]

[Operator Instructions] Next question is from the line of [indiscernible], an individual Investor.

[Unknown Analyst]

My first question is that, is there any long-term plan for Matrimony to enter new markets, like which -- we entered recently, Bangladesh? The long-term, not in the near term, like a 5 to 10 years down the line?

[Murugavel Janakiraman, executive]

What is the next question? Is it -- any other question? So you said a couple of...

[Unknown Analyst]

Next question is that -- simple one. We entered the marriage services like Mandap.com. Similarly, are we have any plans to launch new services in the long term, let's say, 5 to 10 years span?

[Murugavel Janakiraman, executive]

Yes. Definitely, like Bangladesh --d yes, we entered Bangladesh. Bangladesh is definitely one of the leading players there. So it's small at this point of time. But we definitely look at opportunity as we progress, look for various opportunities, various markets we entered. We continue to evaluate those opportunities. Like Mandap.com, yes, we continue to expand our offering, or continue look for opportunity in wedding services as and when feel opportunity of profit, timing of profit. When we are ready, we'll continue to expand into those opportunities.

[Unknown Analyst]

So just to ask a follow-up question. Do we have any market research team internally or just -- how it will be tracked?

[Murugavel Janakiraman, executive]

Which one? Market…?

[Unknown Analyst]

New markets. Let's say, if you want to enter new market after 5 years, a new service like Mandap after 5 years, are we have any internal market research team or, how do you arrive at that…?

[Murugavel Janakiraman, executive]

There are various ways. There's a team -- we have internal team. We have internal leadership team. So we have people, leaders and sufficient signal to decide -- based on that we decide which market or which business to enter. Yes.

[Unknown Analyst]

[Operator Instructions] Next question is from the line of Anuj Sharma, M3 Investments.

[Anuj Sharma, analyst]

I don't know if this was answered, but our ATV, BTV has come down in this quarter. What's the trend out there?

[Sushanth Pai, executive]

Yes. So the ATV is a combination of various things. It has basic packages. It has personalized packages. It has even Jodii, which is at a lower ATV. So it depends on the combination of all these packages that the ATV is a derived number. The second thing is, we don't have a target ATV. ATV is a outcome. What we do is, we believe that on a daily basis, what -- based on all our analysis, we have to charge a particular number to a customer, and we have methodologies to determine that based on past inferences. So that's how the ATV is an outcome. So we don't have like a target ATV that we measure ourselves on. It is also a resultant of all the segmentation strategies that we have. The ATV is at a particular level. So we are not very disturbed or whatever, that the ATV has come down.So one quarter it may come down. If you see the last 7, 8 quarters, it has always been in a particular range and the reasons for that are because of that. However, I think it is --more than the ATV, it is actually good to see the paid subscriptions. If you see whatever we are doing, the paid subscription is growing at 11.5% year-on-year. So which also means that whatever strategies we are adopting on the ATV on a segmentation and all that, it is working on the paid volume spaces. I think that is the way to see this whole track of ATV.

[Anuj Sharma, analyst]

My second question is on Elite. How is it shaping up? And what is the proportion of revenues now Elite is contributing?

[Murugavel Janakiraman, executive]

So Elite, it's one of the lowest in kind of -- segment in terms of our business. But again, it's started doing well. But thanks for -- sorry, because of competition reason, we don't give the specific revenue of Elite. But definitely, we are looking at -- that's one of the growth opportunity.

[Anuj Sharma, analyst]

And one more, if I may question. The marriage services, we have been putting a lot of efforts. When do you expect benefits from those efforts to show? And which would be -- I think the marriage season would kick in later in, do you expect marriage services to be ready with the bouquet of offerings, or it'll still take more time?

[Murugavel Janakiraman, executive]

Yes, [ in fact ], we're making some changes on wedding services. So our plan is to actually scale this -- breakeven sometime this year. So we are working to the objective. So in fact, some other change -- why some drop in revenue, because we're making some changes. So we are sort of fairly confident of getting into a sale-based breakevens, even if -- maybe on a monthly basis before the end of this financial year. I think that's the goal, we're working towards it. [ Post ] that work on what are the strategies for driving the growth in, for example, [ wedding season ]. The immediate thing -- plan for this year is, as I said, get to the -- that is -- sorry, actually the sale-based breakeven.

[Operator]

[Operator Instructions] Next question is from the line of Kunal Shah from Carnelian Asset Management. There is no response from the line of Mr. Kunal Shah. [Operator Instructions]

[Murugavel Janakiraman, executive]

If there are no further questions…

[Operator]

And there are no further questions. I would now like to hand the conference over to the management for the closing comments.

[Sushanth Pai, executive]

Yes. Thank you. Thank you, ICICI, for hosting this call. And look forward to speaking with you during the quarter. If you have any questions, please do write to us. Thank you.

[Murugavel Janakiraman, executive]

I think looks like Anuj Sharma has some...

[Operator]

We have one last question from the line of Mr. Anuj Sharma from M3 Investments.

[Anuj Sharma, analyst]

See, one question on this litigation with Google. We've seen -- I think a lot of people or other service providers will also be affected due to this particular charge. Now, do we see -- it seems to look more like an individual fighting versus the company. Do we expect more and more companies to join together against this? Or it will be more of a individual-driven [ fight ]?

[Murugavel Janakiraman, executive]

No, it's a lot more companies. Almost around 20, 25 companies are in this fight. Even [indiscernible] 15 to 20 companies, they joined the fight. Apart from that we see the OTT players also, they went to CCI. I mean, the other thing, a good number of companies because they [ support ] all the companies selling digital goods and services. That includes the matchmaking, dating, probably that – [indiscernible] company and media companies, OTT players.So many companies getting impacted. Even the company invested -- yes, so the -- many companies are part of this because it's sort of selective in people offering digital goods and services. Yes, definitely lot more companies. So it's literally -- we call it Google [ tax ], taking a certain [ percent ] of revenue, so which we have been fighting on -- so it's not one company.

[Operator]

Thank you very much.

[Murugavel Janakiraman, executive]

Yes, if no further calls, it's time to [indiscernible] ICICI for hosting. Thank you, Abhisek Banerjee and all the participant [indiscernible], and look forward to continue staying in touch. Thank you so much.

[Operator]

Thank you very much. On behalf of ICICI Securities, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.