Cyient Limited

A cost caveat was flagged: products are changing and "costs that might come up during the course of the next few years" were noted.

A large part of the debt will be serviced by the asset's free cash flow.

Acquisition of TAO Digital Conference Call'

It creates more of a longer-term predictable growth, moves away from project-based work to more multiyear, multi-tower deals. It also helps us get ready for what's coming up and actively under consideration and discussions with several customers, which are outcome-based commercial models. It definitely positions ourselves for making sure that we can address customer needs beyond traditional engineering areas that Krishna called out. And I will let Harjott also talk more about that aspect as he talks about how the two organizations fit together. The third point quickly, obviously, just in terms of numbers, in terms of the portfolio mix that we have and something that I have discussed with several of you before. As Krishna mentioned, from around high single-digit areas, we are adding more than 10 bps in terms of the mix of service line, which is in the technology area for us. So from high single digits, we are going to high teens in terms of the mix of business that is in a higher growth area. Fourth, it obviously brings in critical or fills critical gaps for us in an AI-led market shift. And again, I'll let Harjott go into more details, but this is directly relevant, and we are seeing already a good amount of activity in the market where the advent of AI and the potential what AI can do to many of our existing business as well as new business areas where customers' backlogs are significant need to be harnessed through more data engine work and more importantly, platform software engine work. And that's what again, TAO brings to the table. Just a data point, as you see over here, this is not just we talking about it. Our customers have been giving us the same feedback in our CSAT surveys for the last 2 years. In fact, this year, 79 out of 116, which is approximately 70% of our executives polled in our CSAT gave that same feedback. Finally, as we talked about and Krishna mentioned, it creates the capability scale. While we have been building it up on an organic level, this helps us create a more robust critical mass in areas like data engineering and software engineering which are critical ingredients to drive this AI-driven shift. With that, let me invite Harjott Atrii, who is our Chief Business Officer for Strategic Initiatives. And over to you, Harjott, to talk about TAO and how it fits into our journey. Sure. Thanks, Sukamal. Good morning. While you look at the fact sheet, let me quickly explain the 3 key capabilities which TAO Digital brings and how that impacts and brings about a step function change into our growth strategy as Cyient and TAO joint capabilities. Three key strengths which TAO brings on the table is, one, their understanding and their successful track record in managing the entire life cycle of the data and hence, getting the data ready for AI opportunities. So starting from data collection, data curation, annotation, using tools, automated tools to do that cheaper, faster, better is one pillar of their data strategy and data capabilities. But they go into data engineering, identifying what in terms of the AI models, what is required in terms of the storage architecture, the data performance, the data security, data gravity, data velocity, all those aspects in terms which go towards building the enterprisegrade data lake house, data warehouses is where they are already delivering work right now. And then eventually, in terms of using that data to build the ontologies and knowledge graphs

to train the agents and then deliver the outcome-based services to our customers in industrial engineering. So the entire life cycle of the data, whether it's unstructured data, structured data. How do you collect it, curate it, to store it, make it available for the vector databases, build the industrial grade, enterprise-grade data warehouses and then run the analytics and engineering on top of it. So that's one stream and that's one capability strength to bring on the table.

Atrii called data collection a massive opportunity with a very limited runway for the next 2 to 3 years, said data creation is doubling every quarter across the enterprise and for every customer, and that TAO plays in the space with tools to collect, wrap and build correlation and annotation models, providing a 'right to win' as a wedge play.

Atrii describes data digitization as a "wedge play entry point" offering a short-term opportunity in volume, scale and complexity, with downstream business in data velocity, data gravity, storage and consumption by industrial workloads.