Dreamfolks Services Ltd (DREAMFOLKS) Q3 FY23 Earnings Concall Transcript

Dreamfolks Services Ltd (NSE:DREAMFOLKS) Q3 FY23 Earnings Concall dated Feb. 09, 2023.

Corporate Participants:

Liberatha Peter Kallat — Chairperson and Managing Director

Balaji Srinivasan — Chief Technology Officer and Executive Director

Giya Diwaan — Chief Financial Officer

Analysts:

Pritesh Chheda — Lucky Investments — Analyst

Shreyans Mehta — Equirus — Analyst

Keshav Bagri — VT Capital — Analyst

Mukul Garg — Motilal Oswal Financial Services — Analyst

Anupama Batra — Odeon Capital — Analyst

Ayush Aggarwal — Mittal Analytics — Analyst

Sunil Jain — Nirmal Bang Securities — Analyst

Depesh Kashyap — Invesco Mutual Fund — Analyst

Narendra — White House Capital — Analyst

Nishant Sharma — Nuvama Wealth Management — Analyst

Pulkit Singhal — Dalmus Capital Management — Analyst

Saurabh Mehta — East Lane Capital — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to Dreamfolks Services Limited Q3 FY ’23 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. [Operator Instructions]

I now hand the conference over to Ms. Liberatha Kallat, Chairperson and Managing Director, along with Giya Diwaan, CFO; Balaji Srinivasan, CTO with Dreamfolks Services Limited. Thank you, and over to you.

Liberatha Peter Kallat — Chairperson and Managing Director

A very good evening to everyone, and thank you very much for joining our earnings conference call to discuss the operational and financial performance for quarter three and nine months financial year ’23. This has been a very interesting quarter for the company, launch of continuing new initiatives, adding new partners and relentlessly working on being future expansion ready, while providing our end consumer the most seamless and smooth experience of access to lounges and other touch points on their journey. With the industry know-how, deep integrations, strong relationships and networks we have gained and build over time with our clients and operating partners. We are the industry-leading player with 100% coverage across the airport lounges in the country. The statistics are similar when it comes to railway lounges, where we are present currently in 10 railway lounges across the country and witnessed a steep growth rate with our modernization of railway stations happening at great next speed. We operate on an asset-light model when it comes to our tangible capital assets. Similarly, our business model is not human resource intensive. We operate with a lean team size of 64 full-time employees including our senior management and carry out our operations in an optimal and effective manner. Not only limited to the airport-related benefits, we took a deep — we took a big step via a strategic partnership with one of the four [Indecipherable] and leading golf privileges providers, Vidsur Golf.

This first-of-its-kind association will enable Dreamfolks to expand its already diverse service offerings by enabling end customers access to golf games and lessons across India and Asia Pacific. This association will give customer access to golf games and lessens at 40-plus golf clubs throughout India and 250-plus golf clubs and resorts in the Asia Pacific region. From an industry overview standpoint, India has a very low air travel from the city. However, business is changing due to multiple factors ranging from greater disposable income, lifestyle preference changes, declining air travel costs vis-a-vis AC train costs and opening up of several new travel routes. From a regulatory perspective, too, the Government of India has pushed the UDAN Scheme to increase air travel in Tier two and Tier three cities leading to higher connectivity between Tier one and other cities. In budget 2023, Finance Minister, Nirmala Sitharaman proposed revival of 50 additional airports for improving regional air connectivity, which will further help our business to grow. All in all, we see a very strong upgrade in air traffic and thereafter, a preference to opt for full added services such as lounges, spa services, airport transfer, F&B outlets and more. Our demographics are favorable to with an immensely dip digital penetration and growing card user base, which increases the odds of this new crop of people to desire, adopt and prefer air travel, increase travel frequency.

Currently, a very marginal portion of the eligible base of credit/debit card user base are accessing lounges. Thus, the headroom for growth that lies ahead is phenomenal. The credit card penetration is low in India and is expected to increase exponentially. With the industry reports suggesting that the credit card user base is expected to grow 33 times in the next two decades. Lastly, talking about infrastructure — to meet this growing demand and capitalize on this growing trend, while the number of airports are increasing in high-traffic Tier two and Tier three cities and towns, the existing airports are getting more lounges and the existing lounges are steadily increasing their services — service areas to accommodate a greater number of travelers. Even then, when we have barely scratch the surface, we have 60 lounges in the country, spread over 125 plus operational airports at the moment. This statistic is expected to steadily rise over the next two decades and expected to reach 200-plus airport lounges spread across 295-plus airports by 2040. Thus, quite evidently, the headroom for growth is immense. Over and above the infrastructure growth, we have also been able to introduce innovative solutions for decluttering the queue outside the lounges. We have introduced self-check-in kiosks at major airports in the country, which eliminates the queues and reduce wait time at lounges reception. Closest medium, the end customer can check the benefit on multiple cards without waiting in queue.

At the kiosk, a user can scan the QR code to register and check in or debit card on the to generate QR [Indecipherable] to access lounges, which can then be used to access the lounge. This quarter witnessed a lot of activity in terms of air travel owing to the festive season domestically and winter holiday travel for overseas standards. This has well for us as a company as it increased footfall and rising adoption of airport lounges and other services at airports has helped us increase the number of travelers deserve substantially. As part of our diversification strategy beyond the financial services sector, our solutions have created [Indecipherable] revenue opportunities for airlines and OTAs by enabling them to cross-sell and upsell our services to their ticketing customers. Our focus is an operator to provide services and bigger than the option of a single-point access to the customers while also providing the technology to validate the benefits available to consumers provide card-based and digital access and billings. On the business development front, we have recently tied up with five new clients, including the newest LCC in India, Akasa. There has been a strong growth of approximately 63.4% in air traffic in nine months financial year ’23. Domestic air traffic grew by 16.67% in quarter three FY ’23 as compared to quarter three FY ’22.

We have seen record high footfall in the airport lounges privately due to early arrival requirements and the higher engagement from card network providers as well as issuers to avail variance offers and services. Number of passengers availing lounge access and other touch points through us has grown at a healthy rate of 154% year-on-year in nine months financial year ’23 and 87.93% in quarter three financial year ’23. In nine-month financial year ’23, passengers accessing the airport lounges access and other touch points stood at 5.81 million compared to 2.20 million in nine months financial ’22, reflecting the recovery in the travel industry growth. For quarter three financial year ’23, the passengers accessing the airport lounges access and other touch points stood at 2.15 million compared to 1.14 million in quarter three financial year ’22.

To take you through our check capabilities and development, I would like to ask Balaji Srinivasan, our CTO to take you.

Balaji Srinivasan — Chief Technology Officer and Executive Director

Thank you, Liberatha, and good evening to everyone. On the technological front, our Dreamfolks platform is proprietary and has been developed in-house. The entire platform technology is cloud-based and allows lounge operators to check the consumers’ benefits on the cards, memberships or vouchers and allow access to facilities based on the benefits or integration as per the clients’ processes and systems. We provide clients the option of providing the consumers different mechanisms to access airport-related services like lounges, via an omnichannel mode and facilitate lounge access and other benefits via credit and debit cards, card issuer apps, our own app through kiosk and web-based portal using a hybrid technology. In more recent digital model integrations, clients are integrating the lounge benefits and access mechanism into their own mobile labs. As mentioned earlier by Liberatha, the association with Vidsur Golf layers the Dreamfolks proprietary tech platform on top of the global inventory of Vidsur Golf, thus seamlessly blending into the existing customer value propositions of our existing and esteem plans.

One can now book from several golf locations and courses to either play or learn golf globally and select any of the golf course or [Indecipherable] offers through the Dreamfolks spec platform for a stemless booking experience. Our platform also makes it simple for our clients to benefits and to calculate and manage them as well. It also offers options for integration and data exchange APIs Additionally, it streamlines the lounge access procedures so that customers benefits are verified and synced in real time across all the access methods, which support correct accounting and is intended to stop system misuse and customer service denial. Our in-house developed proprietary tech platform is aimed at hassle-free experience to our consumers. This superior technology platform is one of the multiple moats that we have at our company.

Now I would like to request our CFO, Giya Diwaan, to take you through our performance of Q3 and the nine months that has gone by.

Giya Diwaan — Chief Financial Officer

Thank you, Balaji. And a very warm welcome to one and all attending this earnings conference call. As highlighted by Liberatha and Balaji, this quarter has seen a number of developments, be it on the industry front, with the development of infrastructure or on the company front with the addition in offerings and deeper integration with our clients. This has translated into another quarter of growth performance with the margin expansion during the quarter. The improvement in margin year-over-year sequentially is a testimony to our strong fundamentals of driving sustainable growth, resulting in operating leverage. Our growth — revenue growth continues at a healthy pace and we witnessed another quarter of healthy performance across key KPIs contributing to all-round growth in margins. The growing pipeline and strong client additions despite a volatile global environment highlights the strength of the Tap travel industry and the adoption of tech products to drive revenue. Continuing with the momentum in last couple of quarters, the company registered 107% year-over-year revenue growth with the Q3 FY ’23 revenue from operations of INR204 crores compared to INR98.3 crores in the corresponding quarter last year. The growth in the nine months of FY ’23 stands at 192% with the company posting revenue from operations of INR535.5 crores in nine months for this year as against INR183.33 crores in the corresponding period last year. The growth is primarily on the back of continuing uptake in the passenger volumes. In terms of the profitability, happy to report that we have reported an EBITDA margin of 13.05% in this quarter against 8.77% in Q3 FY ’22.

Our EBITDA closed at INR26.71 crores in the quarter as against INR8.62 crores for Q3 FY ’22. The EBITDA for the nine months stood at INR67.29 crores as against INR11.2 crores for nine months FY ’22. EBITDA margins improved substantially, arising from 6.3% in nine months FY ’22 to 12.52% in nine months FY ’23. The company continues to have strong client relationships that are helping in building a scalable, predictable, stable and sustainable revenue and operating margins. The reported PAT for Q3 FY ’23 was INR18.98 crores, which has increased by 208% compared to INR6.16 crores in Q3 FY ’22. The PAT for nine months for this year was INR47.23 crores, which has significantly increased by 550% compared to nine months period of the last year. During the nine months period of the current financial year, our PAT margin was 8.79% compared to 3.93% in the corresponding period of last year. Our major expenses are linked to employee compensation, which for the nine -month period was INR12.3 crores. It is 2.3% of our revenue. Being an extremely asset-light company with a very lean organizational structure and size, we don’t have any major capex needs or other outlays and we are confident of financing any future scale-ups or expansions through internal approvals. Strong profitability and asset-light business model has helped us deliver significantly higher double-digit returns to the shareholders. We recorded a ROCE of 46.46% and ROE of 36.1% during nine months FY ’23 on a nonannualized basis.

With this, I would like to hand over the call to Liberatha to highlight the way forward for the business.

Liberatha Peter Kallat — Chairperson and Managing Director

Our next phase of growth is centered upon multiple layers, while we will continue to cross-sell and upsell to existing clients on the back of new premium services that we have added and continue to work upon acquiring new clients in existing and new sectors and via geographic expansion is a major focus area. We currently have 1,486 touch points globally and are constantly in the process of expanding our footprint with strategic partnership and tie-ups. We have demonstrated a strong business model that has helped us scale up in a very short time span, and we intend to replicate a similar success story by leveraging our deep knowledge of the industry, technology innovation, process expertise and risk data backed insights across new growth markets, which include Middle East and Southeast Asia. With premium offerings such as gulf course Access, we aim to increase wallet share with existing clients and expand our association beyond airport lounge services. As regards new clients, we aim to expand into newer sectors to create customer engagement and provide loyalty management solutions.

While it is a very niche and small contributor at the moment, nevertheless, customer engagement and loyalty solutions for corporate clients and developing tailored solutions for the business in the airlines, new way digital, fintech and OTAs, among others, is another area of interest. To support these strategies on the industry front, the infrastructure is upgrading both in terms of size and quality, which bodes well for us. Customer spending has also increased over time, leading to a sustainable growth in air travel going forward. By virtue of what we refer to as Dreamfolks flywheel, which is essential a mix of three elements: a higher number of users lead to a greater number of lounges where we enjoy a tremendous competitive advantage, more lounges bring more banks and brands to this line of business. As a consequence of which a broader bank and client coverage draws more users. Having deep integration, the ecosystem creates interdependencies that not only support our growth levers, but also the entire Dreamfolks in this principle.

With that, I think we can open up the floor for your questions.

Questions and Answers:

Operator

[Operator Instructions] The first question is from the line of with Pritesh Chheda with Lucky Investments. Please go ahead.

Pritesh Chheda — Lucky Investments — Analyst

Yes Ma’am, from your slide, there is this count of Dreamfolks Pax for the nine months, which is about INR5.8 million. Can you give us the corresponding nine -month number last year for us to understand the growth on a nine -month basis? And your revenue growth would be faster than the [Indecipherable] growth. So is it fair to assume that there would be international this year versus low international last year, hence, the realization increase?

Liberatha Peter Kallat — Chairperson and Managing Director

The corresponding numbers against 5.9 million for the nine months FY ’23 is 3.64 million — against 5.8 million, it’s 2.2 million in the period ending nine months FY ’22, okay?

Pritesh Chheda — Lucky Investments — Analyst

Okay. And can you give the bridge on the realization side? So your revenue growth will be faster. So I’m assuming that you’ll have a lower international packs last year than higher international packs this year, whereby the revenue growth is faster than the packs growth, that’s how it is?

Liberatha Peter Kallat — Chairperson and Managing Director

So of course, the proportion has changed compared to the previous year. If we talk about nine months ending previous year FY ’22 versus this nine month FY ’23, currently, the ratio is 25%/75% between international and domestic, while that used to be close to 40%/60% in nine months ending FY ’22.

Pritesh Chheda — Lucky Investments — Analyst

No, I missed it. 75% is…

Liberatha Peter Kallat — Chairperson and Managing Director

25%/75% is in the current period, in which 25% is international, okay?

Pritesh Chheda — Lucky Investments — Analyst

75%/25% would be last year and 40%/60% would be this year?

Liberatha Peter Kallat — Chairperson and Managing Director

No, no, no. 75%/25% is the current number.

Pritesh Chheda — Lucky Investments — Analyst

Okay.

Liberatha Peter Kallat — Chairperson and Managing Director

Okay? And 15%/85% is the previous period number.

Pritesh Chheda — Lucky Investments — Analyst

Okay. And my last question is, this 5.8 million for nine months or, let’s say, 3.5 million for last year. What do you see this at the year-end is 5.8 million look like?

Liberatha Peter Kallat — Chairperson and Managing Director

So sorry, we would not be able to speak on any forward-looking statements over here. But if we talk about the industry prospect and we get to see this data, DGCA published data on a month-on-month basis, we are clearly seeing the growth traction continuing in the January number out, which is there in the public domain.

Pritesh Chheda — Lucky Investments — Analyst

And any changes on the realization per pax with any of your contracts incrementally, anything that we need to be aware about either upward or downward on your contracts?

Liberatha Peter Kallat — Chairperson and Managing Director

Actually, if you see the way the contracting happens, there is an escalation. But for most of the escalation for this year, we have already closed the pricing. So you would see kind of a stable or slightly improved pricing going further as well.

Pritesh Chheda — Lucky Investments — Analyst

Welcome. Thank you very much.

Liberatha Peter Kallat — Chairperson and Managing Director

Thank you.

Operator

Thank you. Our next question is from the line of Shreyans Mehta with Equirus. Please go ahead.

Shreyans Mehta — Equirus — Analyst

Yeah, thanks for the opportunity. Firstly, congratulations on a strong set of numbers. First, ma’am, in terms of our gross margin, if you see, they have improved sequentially as well as year-over-year. So any particular reason?

Giya Diwaan — Chief Financial Officer

So, Shreyans, two factors. If I look at last few quarters, first is the mix, which has changed. When I talk about mix, it’s international versus domestic mix. And within India, international lounge traffic and within India, the domestic lounge traffic because the margins are different in these two set of lounges, right? So that has been changing. We just spoke about currently, we are in 75%/25%, while if I look at the past four, five quarters, it used to be hovering around 85%/15%. And sometimes during the COVID impact, it actually became more like a 95%/5%. So that is also a factor which is driving the gross profit. And the second is in terms of our pricing, as new set of clients are increasing, Liberatha was mentioning that we are opening up for a larger set of industries beyond financial services, we have airlines, OTAs and other corporate lines coming in — that helps us in maintaining our margins and rather improving our margins quarter-on-quarter.

Shreyans Mehta — Equirus — Analyst

Got it. Got it. Got it. Sure. Secondly, ma’am, if you could highlight what are the revenues from the railway segment or the other segments during the quarter and sequentially and…

Giya Diwaan — Chief Financial Officer

Shreyans, railways is at a very nascent stage. As we have mentioned, we are currently in 10 railway lounges. And we started this two to three quarters back. So it’s growing very fast. However, what would drive the growth faster is the infrastructure development. As new and new lounges are getting added, we would keep adding that as an offer to our clients for their users. So we see that, that’s going to drive the growth substantially. However, as a part of contribution to the total revenue, it still is negligible. We will have to see some more quarters to see the right traction.

Shreyans Mehta — Equirus — Analyst

Got it. Got it. Got it. Sure, ma’am. And ma’am, two more questions from my side. We were — as far as our international operations are concerned, how are we placed out there? So when can we hear something concrete on that front? And lastly, if you could provide us with the cash number as on date?

Giya Diwaan — Chief Financial Officer

So coming to the global expansion, so we have already started working on it in terms of we have hired a few of our team members for these regions, especially in Southeast Asia. And we are in process of also onboarding team for Middle East as well. So I would say that we would start seeing the numbers coming in and maybe six to seven months’ time, we will start seeing that we will also have clients from these regions as well.

Shreyans Mehta — Equirus — Analyst

Sure, sure. And cash number, if you can help?

Giya Diwaan — Chief Financial Officer

So we have not reported that, but we closed with a cash balance of INR12 crores — free cash.

Shreyans Mehta — Equirus — Analyst

That’s it from my side. I’m going to all the best.

Operator

Thank you. [Operator Instructions] Our next question is from the line of Keshav Bagri with VT Capital. Please go ahead.

Keshav Bagri — VT Capital — Analyst

Hello, thank you for the question. So if we look at the macro picture, number of airports, lounges, privatization of airports, non-ad revenues [Indecipherable] solutions to parties and on those side of the trades. And in the lounges [Indecipherable]. My question is regarding the micro picture. So how has the company we are protecting our solution? Is it through some intellectual rights which we have on our technology solution? Or are we focusing more on the exclusivity with the lounges? So what kind of progress on that side of the story?

Giya Diwaan — Chief Financial Officer

Okay. So the way we are actually trying to safeguard or I would say that strengthen our business is that, yes, one, is that getting into exclusive contracts with the lounges. So yes, that is one point. And secondly, is that in terms of the technology as well, the way it works is that we are deeply integrating with our banking partners. So that is one of the strong points because the step of integrating with these clients itself is a very long process, right? And there are a lot of compliance as well. So once you have integrated with these clients, it is — I would say that the process or in the long-term run, it is one of the strongest way that how you actually take care of the solution or how you protect your solution. So I think these are the two important factors. Secondly, the most important thing, I would say, is that from the time when we have actually started this business, wherein we started with the lounges, but now you can see that in terms of value-added services, we have added all the other services, starting from airport transfer to meet an assist to the other services at the airport. So I think we enhance the product services as well. So that is also very important that we keep adding more and more benefits and services. And now also we added golf to our inventory as well. So I think it’s very important that how we upgrade our product portfolio. Secondly, the enhancement of the solution as well, like we always talk about our hybrid solution. So earlier, it was just on the first terminal today. We have our enough solution. We have — and that’s the reason we are integrating our system. So these are the ways that how we protect our business and how we try and ensure that we are ahead in the market.

Keshav Bagri — VT Capital — Analyst

That’s great. And my second question would be like being a catalyst, it’s obviously very difficult to expand your margins beyond a certain point. But what we have witnessed in this quarter is that our margins have been [Indecipherable]. So how sustainable these margins are in the future? Plus, if I remember the management has given a guidance of around pax of INR60 crores for FY ’23. And this leads within our reach because we have already reached INR45 crore this year. So are we in a position to lease at a guidance? Or would the management like to stick to this previous commentary? On similar lines, how has been the traffic in the month of January and February?

Giya Diwaan — Chief Financial Officer

So you’re right that we have been able to maintain a margin anywhere between 15% to 16%. That’s the focus when we raise the conversation with both the set of our stakeholders, whether it is clients or operating partners. The endeavor would be to definitely keep improving in terms of the margin within the same range of 15% to 16%. However, an interesting factor, as we scale up, I’m sure you have seen that our employee and other expenses do not increase in the same proportion model and having the team of operations, right? So if the margin keeps on improving as we keep scaling up. So hence, this growth which we are waiting to see quarter-on-quarter. In terms of the guidance, of course, we would not be able to comment at this point in time when it comes to PAT and the number we are referring to. But when we look at the DGCA data, for the numbers for January, the traffic is even higher than what they logged in the month of December. And typically, this quarter is also considered as a travel quarter, but — in the March month wherein it kind of normalizes. So — and also this year, we are seeing a lot of new normals after we have recovered from COVID. It will be difficult for us right now to estimate what it would be in the March quarter.

Keshav Bagri — VT Capital — Analyst

Okay. That will be great. And are we trying to add more value-added services like the one which we had with [Indecipherable] and how fruitful has that tie-ups, like if you could sort in some numbers also margins? Plus has there been any communication from your side or from the banks and the operators regarding the effects of reduction in the [Indecipherable] they have been charging?

Giya Diwaan — Chief Financial Officer

So in terms of the value-added services, I would say that, yes, we are in a process of adding new services as and when there are additional offerings, which are coming at DFO. So even now, if you see that we have almost added everything which is required for a traveler and whenever we see there is a new requirement. And yes, we are in process, and we will soon announce our new service portfolio as well that you know what are going to be there in coming months as well. Coming to the MDR charges, I would say that we mentioned earlier also that this has nothing to do or going to impact our existing business. Because as we said that lounge benefit, which has been given is an acquisition cost for the bank. So we have so far not heard anything or have not come across from any of our clients that there is going to be any such impact on the benefits that they will be providing.

Keshav Bagri — VT Capital — Analyst

Okay. Can you give me some numbers regarding the Golf type that you had like in terms of annual margins, like how margin accretive these types are or the value-added services are as compared to your original business along the operations?

Giya Diwaan — Chief Financial Officer

So the margins, we will try and maintain in the same way what we have actually been doing it in our present business. And golf has just been added and it’s too early for us to right now talk about what type of numbers are there. But I would say that it would take a couple of months for us to actually see the contribution from these services.

Keshav Bagri — VT Capital — Analyst

Okay, thank you. That’s it from my side. Thank you very much.

Operator

Our next question is from the line of Mukul Garg with Motilal Oswal Financial Services. Please go ahead.

Mukul Garg — Motilal Oswal Financial Services — Analyst

Thank you. Just a couple of quick ones. First, to followup on the previous participant. Can you…

Giya Diwaan — Chief Financial Officer

I think the line is disconnected so is there anything?

Operator

Yes, ma’am, the line for the participant has dropped. We will move to the next participant. The next question is from the line of Anupama Batra with Odeon Capital. Please go ahead.

Anupama Batra — Odeon Capital — Analyst

First of all, congratulations for your great numbers. So I just need some data points. If you could just tell us about the conversion rate for maybe on quarter-on-quarter basis or maybe for nine months? And if you could throw some light on realization for domestic and international lounges this quarter? And also, if you can tell us about the ratio between the lounges services and other value-added services? Yes.

Giya Diwaan — Chief Financial Officer

Sure, Anupama. So as we mentioned, 5.81 million is the number — Dreamfolks passenger number for nine months FY ’23 which actually gives us a conversion ratio on the domestic Pax numbers of 5.9 million for the entire period ending. And if I compare that with the corresponding period, in previous year, it was 2.2 million, which gave a conversion ratio of 3.64 million. As far as the price realization is concerned, the price realization on the blended basis is INR940 approximately for us, wherein if we talk about domestic, that is close to INR840, INR845. And internationally, that would be anywhere between INR1,200 to 1,400.

Anupama Batra — Odeon Capital — Analyst

Okay. And also the ratio in Q3, the ratio of lounge services versus the other services?

Giya Diwaan — Chief Financial Officer

So Anupama, the ratio primarily is driven by — the revenue primarily is driven by the lounge businesses. So more than 96% of our business comes from lounge operations.

Operator

I think Anupama Batra has left the question queue.

Anupama Batra — Odeon Capital — Analyst

No, I’m done with my question.

Giya Diwaan — Chief Financial Officer

Okay, okay, ma’am. Yes, thank you very much.

Operator

Thank you so much. Our next question is from the line of Ayush Aggarwal with Mittal Analytics. Please go ahead.

Ayush Aggarwal — Mittal Analytics — Analyst

Thanks for the opportunity. I hope I’m audible?

Giya Diwaan — Chief Financial Officer

Yes, you are.

Ayush Aggarwal — Mittal Analytics — Analyst

Yes, great. So the growth in this year comes on a small base on last year. But the one issue that we see right now in airports is that the lounge area cannot be easily expanded, and there’s a lot of overcrowding in major lounge which is happening. So any indication from lounge partners that how they plan to tackle this? And because if lounges does not grow…

Giya Diwaan — Chief Financial Officer

So the thing is that all the major airports, especially on the metro cities like Bangalore, Mumbai, Delhi, Hyderabad which are privately owned of airports. If you have seen that, yes, there have been a drastic change from the times where we have already started this business, which is 10 years back. The average lounge size used to be around 2,000 square feet, which today the average size is around 13,000 around square feet. And further, the airports themselves are actually in plans of expanding this because they see that there is too much of value and business benefit even for the airport as well. So there are lounges which are getting expanded. Bangalore, if you would have seen that initial, there were two lounges, which were of a size of 5,000 each. But today, the lounge space is around 30,000, 35,000 square feet. And now there is a new terminal, too, which is also operational wherein there also the equal sign of lounge, which is going to be around 30,000 square feet lounges, which is coming. So obviously, the traffic is going to be shared between Terminal one and two. In a similar way, even in Delhi also, if you see that existing lounges, which were there have already expanded. The international side, the lounge is already expanded. Domestic, you will see in next two months, the existing space, which is there is going to be double.

So there are expansions which are going on. And even the existing Mumbai terminal T2, there are expansion plans and there are spaces available at the airport, where the airport is working on having additional space. So this is on the airport side, where they see that there is a value from these lounges and business and good revenue coming to the airport as well. But coming from Dreamfolks side, the things what we are trying also to build in is in terms of the technology. So obviously, yes, looking at the long queues at the lounges, we have also built in the self-check-in kiosk, so which you will actually notice this self-check-in kiosk in Hyderabad, Bangalore, Delhi and very soon in Mumbai Airport as well. That these kiosks are going to be away from the lounges wherein the passenger can actually go and personally check the number of cards, whatever they have to check which cards will have the eligibility and they would be given a QR code where they would not have to stand at the lounge queues at the reception, but rather just scan the QR code and get into the lounges. So I think these are the things which are already been done. And from the airport side, as I told you that there are a lot of expansion plans which are going on. So we see that rather there is a huge growth and potential and a huge opportunity with more and more airports also getting privatized, so there is a huge potential for our growth as well. Sure. Any further questions?

Ayush Aggarwal — Mittal Analytics — Analyst

Yes.

Operator

Mr. Ayush Aggarwal, maybe ask you to join the queue afresh as there is disturbance from the line. We are unable to hear you. [Operator Instructions] Our next question is from the line of Sunil Jain with Nirmal Bang Securities Private Limited. Please go ahead.

Sunil Jain — Nirmal Bang Securities — Analyst

Yeah, thank you for this opportunity, and congratulation on a good set of numbers. My question relates to one about the data. This employee cost last quarter was having some resort expenses. This quarter, is there anything or no?

Giya Diwaan — Chief Financial Officer

There is an ESOP — can you hear us? There’s a disturbance in the background. So Sunil, there is an ESOP expense building in this quarter’s numbers in employee costs as well.

Sunil Jain — Nirmal Bang Securities — Analyst

Can you give us the amount possibly?

Giya Diwaan — Chief Financial Officer

Yes. So in Q3, it is 2.89 million, which is factored in, in the employee expenses.

Sunil Jain — Nirmal Bang Securities — Analyst

Okay. And what was it in Q2 if you can?

Giya Diwaan — Chief Financial Officer

In Q2, it was 6.26. It is for the entire lot which was allocated to the employees in the year 2021, which gets spread over a period of three to four years.

Sunil Jain — Nirmal Bang Securities — Analyst

Okay. So this 2.89 will continue in the coming periods?

Giya Diwaan — Chief Financial Officer

It will keep reducing because the way it is — the way the accounting is done, it is booked larger amount in the beginning of the year and as the period passes in, the amount keeps reducing.

Sunil Jain — Nirmal Bang Securities — Analyst

Okay. And one more thing about the renewal of contract or pricing negotiation which you have said that has been done with most of the current customers. So generally, this pricing negotiation or renewal is yearly phenomena? Or how it works?

Giya Diwaan — Chief Financial Officer

So usually, our contracts with the clients or the lounges partners are between three to five years. However, the price negotiation, which is there is year-on-year from both the sites. So either it would be a calendar year, which is Jan to December or a financial year starting from April to March.

Sunil Jain — Nirmal Bang Securities — Analyst

Okay. So not many contract might have happened in January 1st — from 1st Jan?

Giya Diwaan — Chief Financial Officer

Yes, we have already closed the contracts.

Sunil Jain — Nirmal Bang Securities — Analyst

Okay. And just last question about the — generally, fourth quarter, you said it’s a traveling quarter. So generally, the trend is like it equal to third quarter or it’s a bit lower than that?

Giya Diwaan — Chief Financial Officer

Sunil, historically, fourth quarter was more or less similar to third quarter, but I’m talking about the trend which used to be pre-COVID level. Now every trend is changing. This would be the first year after the recovery of COVID, we might get to see the same trend as well here.

Sunil Jain — Nirmal Bang Securities — Analyst

Thank you very much.

Operator

Thank you. Our next question is from the line of Depesh Kashyap with Invesco Mutual Fund. Please go ahead.

Depesh Kashyap — Invesco Mutual Fund — Analyst

Yeah, Hi, thanks for taking my questions. Ma’am in my assessment, the Delhi Airport should easily contribute around 15% to 20%, if not more, to your revenues. Now since daily lounges are not operational in the month of November and December, so just wanted to understand the revenue impact of this one-off event in your 3Q numbers. So in a way, how much more you would have done in these lounges were not in operations?

Giya Diwaan — Chief Financial Officer

So these lounges, which were there in Delhi Airport were nonoperational only for a couple of days or weeks, I would say, but there were alternative arrangements made by the airport. So I would say that, yes, there was not such an impact on our business because the alternative arrangements, both in Hyderabad and Delhi were already there. And all these locations, the lounges are up and running with new operators in place and come now.

Depesh Kashyap — Invesco Mutual Fund — Analyst

So there was no impact whatsoever in the last quarter you’re saying?

Giya Diwaan — Chief Financial Officer

Not a major impact, I would say.

Depesh Kashyap — Invesco Mutual Fund — Analyst

Okay. Got it. Also in the PPT, I think you have mentioned that the lounges capacity expansion at P3 has increased from like 2,500 square feet to 10,000 square feet, right, which is a massive increase. So since air traffic is not expected to grow more than 10% to 15% every year. Just wanted to understand your assessment on the lounges conversion ratio, which is currently around 5%. So how high it can go? And if any global comparison you can give that will be useful?

Giya Diwaan — Chief Financial Officer

We could speak globally also, this conversion ratio right now is hovering around 12%. So if you look at the India market, there is still a large room to grow from here on.

Depesh Kashyap — Invesco Mutual Fund — Analyst

Got it. And lastly, given the number that you gave of 25%/75%, right, for the international and the domestic. Just want to understand there’s a number — a proportional number of revenue? Because I see the DGCA website, there the mix of international or domestic is around 15% to 85%, right, still it is very low as compared to pre-COVID levels. So the number that you gave us for the revenue mix or the passenger mix?

Giya Diwaan — Chief Financial Officer

That is for our revenue mix.

Depesh Kashyap — Invesco Mutual Fund — Analyst

Revenue mix?

Giya Diwaan — Chief Financial Officer

Yes.

Depesh Kashyap — Invesco Mutual Fund — Analyst

Okay, got it. Thank you so much.

Operator

Thank you. Our next question is from the line of Mr. Narendra [Phonetic] with White House Capital. Please go ahead.

Narendra — White House Capital — Analyst

Thanks for the opportunity, ma’am. And my question is on, I can see the list of banks which Dreamfolks has tied out, but why is this tie-up is limited to only few banks? Is this because other banks which offer credit card, they don’t have lounge access offer or it is due to our operational capabilities, which are intended to low manpower?

Giya Diwaan — Chief Financial Officer

So just to give you a background, that initially way the program is managed or even presently, I would say it is usually from the network provider, which is Master, Rupee, American Express, Diners. So they are the network provider who actually give this benefits to the banks or the issuers, right? However, now the major — the top issuers wanted to manage their own program, and that’s the reason that why you see only a few of the banks. The other banks are directly under the network today, and that’s the reason you don’t see that individual bank managing or running the program, but these individual banks come under the network provider. So it comes under the Mastercard or Rupee program.

Narendra — White House Capital — Analyst

Okay. In continuation of the same, let’s say, I have a bank card, which don’t have tie-up with Dreamfolks. And let’s say, Bangalore lounge is exclusively managed by Dreamfolks. As a customer, if I commit that card, will you allow me to use your lounge or not? Because you don’t have tie-up with that bank?

Giya Diwaan — Chief Financial Officer

No. So that card is manner — the program is under a network, which would be either a Mastercard or a Rupee, then you would get an access there. However, it is not under the program which Dreamfolks is managing and if the Dreamfolks has an exclusivity with that particular lounge, of course, then that card will not be allowed or that customer would not be getting access to that particular lounge.

Narendra — White House Capital — Analyst

Okay. Ma’am, I don’t see Visa as your client in your website. Is there anything change in the contract here? It was there earlier I think?

Giya Diwaan — Chief Financial Officer

So as I told you that initially, yes, it was the network who were directly running the program. But today, we have direct contracts with all the major top issuers, which actually fall under the network providers. So that is one of the reasons that we have all the direct contracts with large issuers who come under the Visa program as well. So the Visa, Master, Rupee or any network, which is there is directly managed by the issuers.

Narendra — White House Capital — Analyst

Ma’am, your investor presentation mentions possibility of around 150 lounges and 250 airports by 2030. But if I go through your DRHP, it says to manage it successfully, at least we need five million to six million passenger rate per year. And when I look at the data from Airport Authority of India, out of around 150, 160 airports, only 55 airports have annual passenger rate of more than 500,000 per year. And the remaining airports, the number is very less actually. So even though the airports are existing for quite some time. So in this scenario, practically, how many lounges will be possible by 2030?

Giya Diwaan — Chief Financial Officer

So today, also, if you actually see that the major lounges or the major cities, the metro cities are the largest contributor to the program. So the major traffic is presently from the major cities like Delhi, Mumbai, Bangalore, Chennai, Hyderabad, Kolkata, So these are the — so even though there would be lounges or airports coming up in Tier two or Tier three, there would be a contribution, but largely the contribution would be from the metro cities.

Operator

Thank you. Mr. Narendra, may we request you to return to the question queue for follow-up questions as there are several participants waiting for their turn. Our next question is from the line of Nishant Sharma with Nuvama Wealth Management. Please go ahead.

Nishant Sharma — Nuvama Wealth Management — Analyst

Thanks for the opportunity and congratulation for good set of numbers. So my question is more from a longer-term perspective. Currently, our media revenue comes from the lounge services, which is around over 96%. How do you see this number coming down going forward with the addition of other services like railway lounge and gold services? And is there any other services that we are planning like golf services? That were the two questions I have.

Operator

[Operator Instructions] Ms. Liberatha Kallat, can you hear us? [Technical Issues] Ladies and gentlemen, we will be right back. Please hold the line. Ladies and gentlemen, thank you for being on hold. The line for the management is now reconnected. Thank you, and over to you, ma’am. Mr. Nishant Sharma, you can please ask your questions now.

Nishant Sharma — Nuvama Wealth Management — Analyst

I was just looking out currently over 96% of the revenue comes from the lounge services while we have added value-added services like F&B, new [Indecipherable] and others. And at the same time, we are also at a nation stage in the railway lounge and in base of a golf course. So over a period of, say, two to three years, how this other services are likely to contribute apart from the airport-related services? What would be the mix of the non-airport-related services? And also what are the additional services that we are planning to get more going forward? Like we have added golf, so what are the other services that we can add up or possibility of adding up?

Giya Diwaan — Chief Financial Officer

So in terms of the revenue, I would say that the large contribution would always be from the lounge because lounge will be the focus area and that lounge would be the main revenue generating for us. The other services, I would say, would not — I mean, it would take some time where we actually see that there would be a percentage of contribution from these services. But primarily, it would be still the lounge, which will contribute majorly to the revenue. But however, if I have to talk about in coming years, we will see around 10% to 15% of the revenue would be from the additional services what we have added. Coming to the new services, what we are planning to add, I think we are in process of adding few more travel-related offerings, which we will be announcing very soon.

Nishant Sharma — Nuvama Wealth Management — Analyst

So your — the new services will also be related to travel only or the airport lounge services-related only, right?

Giya Diwaan — Chief Financial Officer

I think we will have to wait and watch for us to announce those services.

Nishant Sharma — Nuvama Wealth Management — Analyst

No worries. And the 10% to 15% you referred, this is non-lounge services you’re referring, like it may include meet and assist and the other F&B services and not just — I mean not the golf and railway lounges?

Giya Diwaan — Chief Financial Officer

I would say that apart from lounge, any other services what we have added in the next three to five years, we will see a contribution of 10% to 15% of all the services put together.

Nishant Sharma — Nuvama Wealth Management — Analyst

Okay, thank you. That’s the mechanism. Thanks.

Operator

Thank you. Our next question is from the line of Pulkit Singhal with Dalmus Capital Management. Please go ahead.

Pulkit Singhal — Dalmus Capital Management — Analyst

Hey guys, congrats on a good set of numbers. Just wanted to understand the level of concentration. So on one side we talk to the issuers, and on the other side, we’re talking to the lounge operators. So would it be fair to say that the top five issuers and the top five lounge operators each would be contributing easily 80% or more of your business?

Giya Diwaan — Chief Financial Officer

I would say, yes, but there is a change of trend also happening from the time when we started. So the top five clients, which were a couple of years back, are not the same top five clients in the present year as well. So I would say the trend is changing. But yes, the contributor would be from top six to seven clients, which are there. And similarly, yes, even in terms of the lounges, as we always mentioned, that, yes, the major contributor are from the metro cities. So yes, these would be the operators who would be contributing to the revenue.

Pulkit Singhal — Dalmus Capital Management — Analyst

Understood. And now that you are a listed firm and your okay with finances are quite well public and evidence to these top 10 people, how tough it is for you or would be understated be so tougher to renegotiate terms in the same manner that you do in the past because you are making, say, INR50 crores, INR60 crores of profit at some point you’ll make INR100 crores, do you anticipate that to get a tougher negotiation?

Giya Diwaan — Chief Financial Officer

So as I mentioned that we are actually getting into a different industry segment as well and not just with the banks. And more and more corporate and the other clients, which we are adding up, our margins are actually in a much better and the pricing is getting in a different way — so another strategy we have also maintained in that way, and we’ll continue to ensure that the margins remains steady.

Pulkit Singhal — Dalmus Capital Management — Analyst

Understood. Last question from the railway. It’s an interesting part. So just trying to get a sense as to the size of railway lounges versus the airport ones and the ticket sizes, are they very different right now?

Giya Diwaan — Chief Financial Officer

Yes. I mean, coming to the services, I would say that the service standards or the offerings are almost similar to what the offerings are at the airports because they are all the private operators, even at the railways, the same operators who are managing the airport lounges are also managing the railway lounges as well. So in terms of the service and the qualities which have been offered is almost similar to what is there at the airport. Coming to the pricing, yes, the pricing is different, and I would say, are more competitive as the railway is looking at the price structure for the railway standards. So yes, the pricing is different. But I would say in terms of the quality and the service, we’re trying to match what is there at the airport.

Pulkit Singhal — Dalmus Capital Management — Analyst

I meant on lounges sites, I mean — because railway stations have better space, I would think versus an airport?

Giya Diwaan — Chief Financial Officer

Yes. So the lounges sizes are also in a larger space right now compared to what it used to be earlier called as a waiting room. So almost all the lounges, which have come up right now, are having larger space. And unlike airports here, there are multiple locations because there are different platforms. So obviously, the expansion on having multiple lounges, the opportunities are huge at the railways.

Pulkit Singhal — Dalmus Capital Management — Analyst

Thank you.

Operator

Thank you. Our next question is from the line of Saurabh Mehta with East Lane Capital. Please go ahead.

Saurabh Mehta — East Lane Capital — Analyst

Yeah, Hi, thanks for the opportunity. I wanted to understand like this year, we’ll be closing the year, I’d say, somewhere about INR eight million. So going forward in the coming years, what is the sort of growth which we envisage, especially looking at the lounges, they all seem running at 100% utilization or more. So how do we see it growing? Is it — as you mentioned about the Delhi and Bangalore lounges, is it newer lounges or the same airports or the newer airports will come up with lounges? Like what is the revenue of growth you’re expecting, say, for coming next three, four years, like 15%, 20% or much higher? That’s my first question.

Giya Diwaan — Chief Financial Officer

Yes. So, there are clear drivers for this. One is definitely the credit card penetration, okay, which is — so in a way, our growth would also be partially based on that growth. If we look at credit card penetration and the number of cards in circulation, the growth in last one year, if I compare December ’21 to December ’22, it has — the number of cards in circulation has grown at 18%. On top of it, the adoption rate in the credit card for accessing the lounge also has a room to grow. The infrastructure is also growing, as we spoke about, the lounge sizes are increasing, the number of lounges are increasing, we are adding new services. And on top of it, the air travelers data, if we look at, that’s also growing quarter-on-quarter. In fact, month-on-month as well, there has been a good recorded growth. Now all these factors have like tremendous growth rates coming in the future as well. Our growth would also be primarily driven by these set of drivers. Now we’ll not be able to put any numbers for any of the year because we are also in the process of creating our guidance.

Saurabh Mehta — East Lane Capital — Analyst

Sure. But could you quantify, say, for example, in the coming year, in the large cities or the metro cities, how much of lounges are we expecting to like is going to get added or new lounges, which are going to get added like some-50,000 square feet of additional lounges, which is going to come in the key metro cities or something like that, some quantification for the coming year in terms of the infrastructure?

Giya Diwaan — Chief Financial Officer

So it would be very difficult right now to actually tell you in numbers, but the way we are been seeing the changes or the progress happening at the airport, right? So we would — the way it is that the moment there is an expansion or lounge space are getting expanded in the existing airports. And whenever — the airport also sees that, yes, whether the utilization is 100%, there is immediately a decision being done accordingly of additional space and expansion. So in terms of additional terminals, obviously, it is at the airport level wherever they see that, yes, when the terminal is not able to accommodate or manage the airport traffic, and that’s where the additional terminals are coming. So I would say that it would be difficult at this time to quantify that. But yes, as we see the way the reports are in terms of additional airports coming in, the existing airports getting privatized, so I would say that these would obviously help in the growth of numbers as well.

Saurabh Mehta — East Lane Capital — Analyst

Sure, ma’am. Could you talk about your international growth, how is it — like how is it picking up? And when do we see the meaningful revenue from the international expansion? And do we require to invest in technology employees to grow that fees if you talk about that a little bit?

Giya Diwaan — Chief Financial Officer

So if you have actually seen our business, it’s an asset-light model and the way we have actually built it. So I would say that even if there is an investment required globally as well, it would not be a heavy capex — heavy thing or it would impact. So it would be very minimal in terms of the IT infrastructure, which we will have to build up for these regions. And in terms of talking about our plans and what we have done so far. So yes, in Southeast Asia and Middle East, we have hired and also in process of hiring more team members in these regions. And we see that in the coming years, we will start seeing a good contribution to our business from these regions as well.

Saurabh Mehta — East Lane Capital — Analyst

So like in two, three years, can it contribute meaningfully 20% of revenue or 30% of revenue? Or it will still be less than 5%, 10%?

Giya Diwaan — Chief Financial Officer

It is too early for us to right now quantify or give any number to it, but I would say that, yes, in coming years, we will start seeing a contribution from these stations.

Saurabh Mehta — East Lane Capital — Analyst

And ma’am gaining traction in these markets is it much tougher than we’ve completely stuck the Indian market. So internationally, is it much more tougher, much more challenging? And what are we doing to really grow there?

Giya Diwaan — Chief Financial Officer

So the way we have built our business in India. So we — when we started the business in India as well, that time also we had international player existing in India market as well. The way we have seen the market leader is creating a differentiator in the market, right? When I say differentiator, it was more on the solution, the way the service — or the process is what we have brought in place, which are required by our clients, I think — and trying to improvise it and upgrading those process skills. I think that’s how we have created a differentiator. So as we have done it in the India market, even when there were larger international players already existing. So it is very important to understand the client’s requirement. And I think we understand the pulse of the industry now and we don’t see that it would be a challenge rather understanding the client requirements, it is easy for us to actually get into these regions as well.

Saurabh Mehta — East Lane Capital — Analyst

Ma’am In India market, do you see any actions from the competition like [Indecipherable] to start separate premium lounges? Or like any actions from the competition which we’ve seen we’ve had about Royalty pass trying to start premium lounges directly in discussion with the airports? Have you seen any such actions or like how we’ve seen the competition…

Giya Diwaan — Chief Financial Officer

When started the business, all these players were already existing in India. It’s not that they have come recently or they have just entered this market. They have been in this market and they have been the global player across for more than 30 years now. So in their presence, we have actually taken away the India share from them. So — and there were — and there are more and more who are trying to get into this area of business. But as I told you that it is very important for us also and the way we have built our business is creating a differentiator and regularly upgrading and enhancing the product portfolio as well. So I think these are the strength of Dreamfolks, and we will continue doing that. So we do not see that — because there is — it’s always to be — there has to be a good healthy competition as well. But I think that is keeping us move and do it better in this market.

Saurabh Mehta — East Lane Capital — Analyst

My last question is on the ESOP cost. You already shared the Q2, Q3 ESOP cost, but would just like to get a flavor in terms of what could be the total ESOP cost this year and the next couple of years? Is there a big ESOP cost there? Or it is going to remain at the same level?

Giya Diwaan — Chief Financial Officer

So the pool which we have allotted in 2021, the total cost for that pool is close to INR four crores which will get booked over a period of time starting from FY ’22 to ’25. A major part of it would get booked into ’22 and ’23 and a smaller portion of it would also come in ’24 and ’25.

Saurabh Mehta — East Lane Capital — Analyst

So that total cost you’re saying is only INR four crores?

Giya Diwaan — Chief Financial Officer

Yes. For the stocks, which are already allotted. So any new pool getting allotted would have additional cost to that.

Saurabh Mehta — East Lane Capital — Analyst

Okay. And nothing else is there immediately, like this is the current cost structure?

Giya Diwaan — Chief Financial Officer

This is the current situation. Yes.

Saurabh Mehta — East Lane Capital — Analyst

Yes. And last is on like our operating cost and the employee costs both have fallen this quarter. And so what is the run rate which we are really expecting for the coming years? Like is it going to just inflationary increase in cost or 15%, 20% kind of increase in cost as we grow our business? Is there any significant cost?

Giya Diwaan — Chief Financial Officer

I would say for us, the right way to see the employee expenses instead of quarter-on-quarter, better to look at it YTD because then there are certain factors which drive a bit of variation in quarter-on-quarter numbers. Like for this, it was an half yearly incentive paid in the quarter two which was not there in Q3. So you would get to see the reduction. Similarly, ease of expenses, the way the accounting is done for ESOP expenses, which is higher in the earlier years and it keeps reducing in the lower year. So we spoke about Q2 ESOP cost, which was INR62 lakhs, while in Q3, it was INR29 lakhs. So these factors drive in certain variations in quarter-on-quarter. However, if you look at the blendes rate and look at nine months FY ’23, I think looking at that monthly average would be the right way.

Saurabh Mehta — East Lane Capital — Analyst

Got it. Got it, ma’am. And last, if you could comment on the working capital, like, is there any significant change from the half year improvement or deterioration which we’ve seen?

Giya Diwaan — Chief Financial Officer

Well, we have seen the receivable cycles getting normalized, and we spoke about it last time that it’s currently anywhere between 90 to 100 days. It may vary a little bit quarter-by-quarter. But this new normal actually has no impact on our business performance, which you can witness in our growth numbers. So — and also, this doesn’t have any impact on our interest cost because our internal approvals are good enough for us to fund our working capital and growth requirement. So I think with this new normal of 90 to 100 days, you’re still seeing our balance sheet in a healthy state.

Saurabh Mehta — East Lane Capital — Analyst

Thank you.

Operator

Thank you. Due to time constraints, that would be the last question of a question-and-answer session. I now hand the conference over to the management for closing comments.

Liberatha Peter Kallat — Chairperson and Managing Director

Thank you, everyone, for joining us in this earnings call. We, at Dreamfolks Services Limited, will continue to build upon progress made over the past few years. We find ourselves in a profitable position in a high-growth industry with multiple tailwinds guiding our journey. As we look to scale greater heights, the streamline operations enable talent pool and constantly upgrading high-quality offerings over and above our deep relationship and network build over the years, give us reasons to be confident about our path ahead.

Giya Diwaan — Chief Financial Officer

Thank you again, everyone, for joining the call.

Operator

[Operator Closing Remarks]