Sorry I thought this was a google review. My bad.

Interestingly enough, in the latest concall, management was not ready to give any indication about their capex plans for the next couple of years, in spite of persistent questioning by the analyst from Lucky Investments. I quote:

“So we have no upper limits in our mind with regard to how the growth block should grow. It
completely is driven by the demand. So we are able to like set up our deployment in a way that
like we are prepared for large capacity expansion.
But obviously, we keep building the capacity as the demand keeps coming in and as the
customers keep getting signed up onto our platform. So based on that velocity, we keep on
building the infrastructure. Now, obviously, there is some sense to this fundraise.”

I understand being ambitious in wanting to capture as much of the demand you can, but in business you do plan your capex, fund raising, etc couple of years in advance right? Can’t be open ended! I found this part of the call interesting and perhaps a bit strange.

Good growth from past year, what resulted in such double digit growth?

Thank you for your perspective!

In this sector, companies specialize in a specific niche (e.g. a subdomain in a sector) or cater to a specific clientele. E.g. GLG is stronger in public market investors globally whereas the companies like Infollion drive most of their business through management consultants.

Fair point. However, how does specialisation get built? IMHO, it gets built by the expert network you build for that domain/sub domain/client vertical and the knowledge base that gets built over time by the experts and the consultations. If the experts decide to go with GLG rather than Infollion (for quality of clients, pay, whatever) over time the expert network and consequent the knowledge base gets built at the competitor instead, right?

However, its believed that this is not their India business growth, rather outsourcing of services from foreign markets to India.

By ‘outsourcing’ did you mean getting their overseas clients’ needs met by experts in India?

My view is that …As long as demand tail wind exists , even basic infrastructure provider will grow at rapid pace and returns will justify capex as margin profile is way way superior to cost of capex . As of now looks like demand shall stay for long in India considering data generation and on the go analytics trends