Rahul Arora, CEO and Sunil Malhotra, CFO addressed the call.

Highlights of the call:

Revenue in constant currency terms fell 14.2% to Rs 69.89 crore qoq.

Reported Revenue fell 15.2% to Rs 67.88 crore qoq.

Revenue was suppressed by Rs 2 crore and Rs 8.9 crore for Q3 FY18 and nine months respectively, due to unfavorable exchange rate movement.

EBITDA margins were suppressed by 1.8% and 2.7% for Q3 FY18 and nine months respectively, due to unfavorable exchange rate movement.

Headcount stood at 2511 against 2986, a fall of 15.9%.

mag+ revenue for Q3 FY 18 was Rs 3.3 crore against Rs 5.3 crore yoy. Unhealthy revenue has been removed.

Content Solutions sales were suppressed by Rs 1.7 crore and Rs 7.3 crore for Q3 FY18 and nine months respectively, due to unfavorable exchange rate movement.

Content Solutions EBITDA margin were suppressed by 1.8% and 2.7% for Q3 FY18 and nine months respectively, due to unfavorable exchange rate movement.

Platform Solutions sales were suppressed by Rs 0.4 crore and Rs 1.3 crore for Q2 FY18 and 9 months respectively, due to unfavorable exchange rate movement.

mag+ revenue for Q3 18 was Rs 3.3 crore against Rs 5.3 crore yoy. Unhealthy revenue has been removed.

EBITDA margin suppressed by 1.8% and 3.0% for Q3 FY18 and nine months respectively, due to unfavorable exchange rate movement.

Total Cash and Cash equivalents as on Dec 2017 stood at Rs 296 crore. The same was Rs 223 crore as on Mar 2017.

The company is a zero debt company.

USD accounted for 75% of revenues in Q3 2018 against 78% yoy.

GBP accounted for 22% of revenues in Q3 2018 against 19% yoy.

EURO accounted for 1% of revenues in Q3 2018 against 1% yoy.

North America accounted for 60% of revenues in Q3 2018 against 59% yoy.

UK/Europe accounted for 38% of revenues in Q3 2018 against 34% yoy.

DSO stood at 69 days in Q3 2018 against 75 yoy.

Top 5 client accounted for 56% of revenues in Q3 2018 against 58% yoy and 55% in nine months. They were 60% in FY 2017.

Top 10 client accounted for 73% of revenues in Q3 2018 against 74% yoy and 72% in nine months. They were 76% in FY 2017.

Top 15 client accounted for 81% of revenues in Q3 2018 against 78% yoy and 79% in nine months. They were 81% in FY 2017.

As MPS is growing, its customer base is diversifying due to growth in larger accounts and addition of smaller customers through platform business.

Its core customer base has now expanded to 15 large accounts.

The company was aware of headwinds that it is facing (due to price deductions) and thus it was able to maintain its profit margins as it planned its expenses accordingly.

Project business was also impacted in Q3 which was not anticipated.

This FY should set new baseline for content business and then next year this business should grow as a result of long term commitment it has got from customers both from book side and journal side.

Sluggishness will continue in Q4 and the company has pruned its business target for FY 2019.

Platform and content business are both tightly interlinked.

The company had anticipated and targeted Rs 100 crore invoices in quarterly basis. But it will have to wait and see whether it gets to the target in q1 or q2 of 2019.

The company had anticipated sluggish content business and so it had raised the money through QIP for inorganic growth. The company was to conclude acquisition by now but was unable to do so. Diversification of revenues and new capability is a necessity for acquiring new company.

The company is looking at companies with revenues in $10-30 million range. Smaller companies that it acquired in the past were difficult to turnaround.

MPS had acquired Mag+ AB, a Sweden based entity in July, 2016. To strengthen the product and market focus which is now driven from India & USA and in order to rationalize these operations it dissolved Mag+ AB, Sweden.

MPS on January 22 2018 has approved the amalgamation of ADI BPO Services Limited.

FY 2018 was a year of margin recovery.

The company hopes to conclude acquisition in foreseeable future.