WSFX Global Pay Limited (BSE: 511147) Q4 2025 Earnings Call dated May. 29, 2025
Corporate Participants:
Srikrishna Narasimhan — Whole-Time Director and Chief Executive Officer
Pooja Mishra — Chief Financial officer
Analysts:
Aniket Gada — Analyst
Presentation:
Operator
Ladies and gentlemen, good evening, and welcome to Investors Conference Call of WSFX Global Pay Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assessions during the conference call, please signal an operator by pressing Star then zero on a touchstone phone. Please note that this conference is being recorded.
Material and information in this conference call is general background about the company’s activities as at the date of this presentation. Information in this presentation should not be considered as advice or recommendation to investors or potential investors in the relation to holding, purchasing or selling securities and does not take into account your particular investment objectives, financial situation or needs. This information is given in summary form and does not support to be complete.
I now hand the conference over to Mr Sri Krishna, CEO and Whole-Time Director; and Ms Puja, Chief Financial Officer. Thank you, and over to you, sir.
Srikrishna Narasimhan — Whole-Time Director and Chief Executive Officer
Yeah. Thank you,. Good evening. This is Srik here along with Puja Mishra. And it’s a pleasure to connect once again with our investors and present WAC’s performance for the quarter-four and for the financial year ’24-’25. So I would now quickly jump into the presentation, which has been already uploaded in the BSE website and the company website. Now we’ll go to the presentation. We are going to talk about the company, what it is doing, what is its business and also how the performance has been over the last quarter of FY ’24, ’25 and what we have done for the overall year.
So going to the first slide where we talk about the company. So WSFX as a company has established a place for itself as a trusted player with our 30 plus years vintage in foreign-exchange. We are a RBA licensed AD2, a regulated entity. We are also certified with ISO and PCADSS. So what are the key factor which we would like to communicate here is we are a trusted partner, regulated and we have all the systems in-place to offer a secure environment for our customers. Okay. What — what have we been doing? We are primarily focused on two key segments, customer segments such students and corporates. And today we can say we have significant business from these two customer segments.
Our core product is foreign currency, prepaid ForEx cards and cross-border remittances under LRS. We also have around 800 plus corporates who deal with us. We have around 500 plus B2B partners and we also have multiple digital platforms, a platform for every customer segment, wherein people can deal with this through the digital platforms. Last year, we would have served over 100,000 plus customers and over the lifetime, we have got around 1 million-plus customers we have we have serviced their ForEx and remittance requirements. We partner with leading banks. Some of the banks we partner with is yes Bank, HDFC Bank, ICICI Bank, IDFC Bank, Bank, etc. And through the digital platforms.
As I said, besides you know foreign-exchange, what do we do different is we have a — we have really looked at digital as the key enabler — key enabler for growth and we have built multiple platforms. We have a platform for corporate where he can completely do his ordering through our global pay smart corporate platform. We are happy to say around 50% of our business comes through this platform.
We have a B2B platform that we call a GlobalPay Smart Agent platform. This is a platform which enables agents to place their orders for their customers and that has seen good acceptance. We have also built a platform called GlobalPay FPAS platform, which enables a platform — our B2B partner to plug-and-play and give a digital offering for ForEx to its customer. Besides that, we have got a global pay app and portal through which our customers can directly deal with the company and order foreign-exchange and cross-border remittances besides a miscellaneous service.
To the next slide, we talk of the various card products, which we have launched. While we have multiple partnerships with bank, we sell HDFC ForEx cards, we sell ICIC ForEx cards. We also sell Thomas cards. We are happy to say that now we have launched our own card. In 2019, we launched a bin sponsorship card, which is a co-branded solution with AS Bank. And now in the last six months, we are happy to say we have got into the issuance space. So today, you can see we have launched three variants of our ForEx card, one is for the leisure segment, one is for the business segment and one is for the student segment. With this WSFX as GlobalPay has signals its entry into the card issuance space and we feel this will be a big growth pivot for the company.
So besides the cards, we have our Global pay app, which is one universal app for all the card management. So in the last quarter was a key milestone for us because as you are aware that we have been focused on, corporate and student segment. But now our focus is more on the leisure segment. As you are all aware, student segment is under little bit of pressure because of the geopolitical situation. So leisure is a key segment which the company has started focusing on. And in this regard, we are happy to say we launched our travel pay card during the last quarter and it had we are happy to say that it has been received very favorably in the market. So before we take-up the result, we talk little bit because since it’s the annual result also, we talk little bit about the opportunities and the challenges which we face in this industry.
So first I will take-up the opportunities. So obviously, the big opportunity today is now we looked at student and corporate, we have built a good base there. But now we see what — considering the global situation and we always feel that India is in a pivotal moment where our GDP is growing and with this leisure travel will go leaps and bounds. We feel growth in leisure travel is the biggest opportunity as of now and it’s also validated by the LRS numbers. Second, digital. Now obviously, whatever we do, this is some — this is a strategic vision we had right from day-one and we have built on it. And we feel this is a key enabler for growth and where we can be also asset-light and deliver solutions to our customers.
Third big opportunity we are anticipating this year is the FX opportunity. We discussed about it two, 3/4 back where we talked about RBI proposing to allow FXE model, which is about allowing ForEx correspondence for AD2s and banks. Now this is something which has not still come through, but we are hopeful that this year it will come through, which will ensure that you know we have distribution reach through this network. So now there is also two more opportunities we are looking at. One is obviously trade remittance, invert remittances through PACB and MTSS licenses, we are looking at this keenly.
In terms of also looking at international expansions where we look at university platforms in remittance corridors, et-cetera, that is two other futuristic growth opportunities we are looking at. Coming back to challenges. Obviously, every quarter we talk about certain key macroeconomic changes, which has resulted — which has impacted our business. One of the impact which has been there for the last one, one and a half years has been the TCS guidelines where there is a TCS of 5% and 20% when it comes to personal remittances and travel. The good news is now the limit of INR7 lakhs has been raised to 10 lakhs, which gives us some breathing space to do business. Otherwise credit cards are an unfavorable advantage here where there was no TCS applied on credit cards.
Now obviously, there is some relaxation there where up to INR10 lakhs no TCS applies and that’s an opportunity for us. But TCS anyway impacts because the ticket size has gone slow because gone small because of this. Okay. Second major challenge has been decline in students, ForEx, students business and we can also see the LRS from the LRS figures of RBI that the student segment has degrown by around 16% year-on-year. There has been significant restrictions in Canada. You’re also seeing the restrictions imposed in US, multiple restrictions through countries for students, which has impacted the students business and we have seen a year-on-year degrowth here and this has been a key area of growth for us. There is also intense competition through banks, aggregators, which, which is part of the business.
The corporate business where we have a key strength is not growing as fast as we would have anticipated because it’s still not reached the pre-COVID levels because of technology and collaboration through VCs, et etc. While it is growing, we would have — it’s still not reached that pre-COVID levels, which have wanted it to be. Then obviously, customer preferences, because there are challenges when it comes to credit cards taking over a bit of our business because of the TCS part of it, which is something which we are trying to resolve. So in the next slide, I quickly give you the last five years LRS data, which will give you a fair idea on how each of the key items in terms of outward remittance and under the LRS is moving.
So I’ve given you figures from 2021 to ’24 ’25. So you can see that the last five years May, there has been a CAGR growth of 24%. But if you closely look at it, while post COVID, there was a spark in certain segments like ’21, ’22, if you look at student segment, it was $5.1 billion. You can say $5 million and $65 million. But today in ’24, ’25, it is dropped down to $2.9 million — $2.9 billion. And you can see 5.1 billion coming down to $3.4 billion. It was flat on ’23 ’24 and ’24 ’25, it is 2918. So there is a negative CAGR and also a negative year-on-year growth in the student segment.
So if you look at travel, travel has been stagnant year-on-year, but of course, the volume is bigger. Maintenance or family maintenance come down by 19% year-on-year. Gift has come by minus 18%. These are the four major categories where we deal in and we have seen kind of a stagnation on year-on-year degrowth. So having given you a market outlook, we are coming to our Q4 and YTD performance highlights. We are happy to say that we have grown year-on-year and this year also we have reported good results, good growth over previous year. I’ve given you the last four quarters numbers.
In Q4, we have done INR1,415 crores of gross turnover, which for the year, it is INR5,722 crores of gross turnover. We have done a PBT of INR1.28 crores for the Q4 and for the year, we have closed at INR6.63 crores INR. Okay. But at a PAT level, Q4 was at a loss because we had to take a deferred tax reversal, which has ensured the PAT is at minus 2.10. For the whole year, the PAT is at 3.47 after OCA, it’s 3.24. So if you really look at it Q4 ’24-’25, PBT was at INR1.28 crores, 28% year-on-year growth over the last quarter-four.
And for the year, we closed at INR6.63 crores, which is 61% year-on-year growth over the previous year where we closed at 4.12 cr. The major impact, as I explained to you on the PAT level, at a PBT level, while we have grown, PAT level, it looks lesser than last year, where we closed at 4.12, today we are at 3.24 is only because of us taking a deferred tax — tax-rate reversal, which doesn’t affect our cash or business fundamentals.
Okay. So from a growth perspective, we have been consistently growing for the last three years in all our segments, be it corporate, be it student or our retail segment. And also we have been slowly able to increase our digital penetration. So in light of the overall performance and our consistent growth where we moved from a INR1 crore-plus of profit to INR4 crore-plus now around INR6.55 crores of PBT, we also wanted to, you know, go back to our old dividend policy and we have now this year recommended INR1.5 — INR1.5 per equity share of the face value of rupee still has been our recommendation.
Last year, we recommended INR1 per share. This time we are going back to a roll level of 1.5 and we have recommended the dividend of INR1.5 per share subject to shareholders’ approval. So we feel that the investors also need to be rewarded having waited patiently for us to recover. So quickly, we go to the next slide where we give a comparison. When you look at comparison of Q4 over Q3 numbers, we have shown 24% growth in gross turnover clocking INR1415.95 crores against Q3 of 1143 and a PBT of INR1.28 crores over Q3 result of INR1.16 crores, which is a 10% growth.
When we compare Q4 of this year over the Q4 of last year, again, we have grown, we have had 11% growth and at a PBT level, we had a 28% growth where we have clogged 1.28 against last year INR1 crore. Then comes the year-on-year comparison, whereas I have told you, this year, we have clogged INR5,722 crores against last year’s INR4,853 crores, which is 18% growth year-on-year. At a PBT level, we had a 61% growth, where we closed at 6.63% against 4.22 previous year. So the next page will give you the quarterly trends, quarterly trends where we have given you a granular data.
I don’t want — I’ve covered most of the things. But this gives you a representation on how the company has been performing. In the last eight quarters, you will find out that every quarter we have grown. In fact, there is a seasonality in our business of Q2, where you will always see a spike. But Q2 to previous Q2 we have grown, Q3 to Q3, we have grown, Q1 to-Q1, we have grown, Q4 to Q4, we have grown. And overall, as I said, we have shown a 61% growth in the PBT here we talk of — the next slide, we talk of the comparative charts between revenue and expenses.
So at a revenue, if you really look at it, gross revenue this year was around INR86.51 crores five years back. Again the five years data to give you an idea on how the growth has been because normally we distribute quarter-on-quarter, which was not truly reflecting the growth. This time around, we have given you a figure where we can show you the last five years how the company’s gross revenue has grown from INR20 crores, we have gone up to INR86.51 crores, which is a CAGR of 44.07%.
Okay. From a selling expenses, we were at around INR16 crores. We have moved — our expenses gone to INR34 crores because of course, we had to invest on people, technology, marketing and at a CAGR of 21.52%. So our aim is to build a scalable digital model where our revenue is at a higher pace than the expenses. Cost-efficient — cost-efficiency has been a overriding thing, which we have tried to do through our digital initiatives. Coming back to the next — going to the next slide, here we talk of a very important segment for Global Pay, which is the students segment. To just give an idea, the market has degrown, but we have grown year-on-year even in this segment. That’s something I would like to say. We have gained market-share.
So the market is around $3 billion USD, in fact, 2.9 something, 16% de-growth year-on-year. From a company’s perspective, we have got a strong 400 plus B2B network of agents, education loan providers, consultants, et-cetera. We have got a platform, both the FPAS platform, plug-and-play platform and the smart agent platform here for our channel partners. The product here is primarily university fee payments, that is the big one. And also along with it living expenses and forex cards for — when they travel. These are the three main products, remittances, cards and currencies. Besides that, we also sell some allied products like travel insurance, etc. Here also, if you really look at it, we have given a five years pattern in terms of GTO and we have grown the CAGR of 46.10%. Last year, we handled 35,000 plus students and as I already mentioned, 400 plus consultants. This is a key area.
Obviously, this year we are seeing some degrowth. But then again, as I said over the period only, we will know-how this segment is going to move, but we are well geared up to gain market-share here with our tie-ups and all. So next slide, we talk of the corporate business, which is again a very important segment because student and corporate has been a key focus for Global Pay. This market is estimated anywhere between $2 billion to $3 billion. Today we have around 850 plus corporate customers. We have key customers like Accenture, Siemens, EY, Zoho, Tekmahindra Alliance, Mind Tree,, Titan, Adani, etc. We have a platform.
We are one of the company which has platform for every customer segment. We have a smart corporate platform through which the corporate can do the ForEx ordering and the main product is ForEx card and currencies. Here we have grown in the last five years at a CAGR risk, this corporate business went completely down during COVID. We have had a smart growth. We are now at a CAGR of 114.21% in the last five years. Third is the retail where we talk of leisure and personal remittance, which is a very big segment. You must-have seen around $17 billion in LRS.
We anticipate the segment to be $12 billion because two remittance also, a portion of it goes on two remittances. Family maintenance gift is around another $6.5 billion. This is an area which has become the new focus for global pay. So now from students and corporates, we are now focusing on the leisure segment in a big way. Obviously, this segment has also slowly moved away from currency to prepaid ForEx cards and we feel there is a big growth opportunity considering we have launched a specific product for this segment. Okay. So here, what is the advantage we have? We have 21 branch network, which can cover the customers.
Also, we have our digital offering. The primary product here is ForEx cards, currencies and remittances. Here also, if you see over the five years, we have shown a CAGR growth of 47.09%. Coming to ForEx cards, we moved from distributor to a co-branded partner to an issuer. And this has been our journey in the last five years, five to six years. And we are happy to say that now we have launched our card products and this is expected to be a big growth area for us. And last five years pay, we had a CAGR of 96.41% growth in this area. Next, we talk of remittances, which is a big business for us because this constitutes around 65% of our business. Here we have grown at a CAGR of 40% over the last five years.
So this is our standard template result. I’ve already covered everything. We have done a PBT of INR6.62 crores against last year 4.12 and a PAT of INR3.23, 3.24 crores against last year’s for not book. So when we do all these things, we also understand that we have to always be true to the core values which we have as a company that is trust transparency, convenience and compliance. So when we look at the four pillars, digital is a key pillar for us where we have an omnichannel network under 21 branches, we have digital platform, we have process optimization and cost optimization. And we have a strong corporate governance framework as a listed company with independent boards, audits, external auditors for concurrent internal.
So we have a strong audit process in-place. Compliance is something very core to our business because as a regulated entity, whatever we do, physical business, branch business or a digital business, compliance is key, KYC in terms of internal processes, security, in terms of, you know beneficiary verification in terms of fund verification, everything is key to us and this is a strong pillar and we are happy to say we have got a good reputation here at a good standing. Last but not the least, customer-centricity, we have to be close to the customers and we are happy to say we have been able to retain most of our customers over the last 10 years. Some of the — most of the customers have been with us for a — some of the customers are there for more than a decade now.
So this is something where we have inbuilt all these four core values into the culture of the company. Before we close the presentation, a brief look at the way forward, which is something we are very consistent. We don’t keep on changing it. We are very clear about this year. The focus is on D2C, leisure and retail because already we are strong in corporate and student. This is where we are doing lot of you know work. We are looking at marketing, we are looking at marketing automation, we are trying to you know, leverage our digital platforms in a big way. And you will see a lot of activities on building WSFX brand, Global pay brand into the D2C space.
Second is a big opportunity is what we are looking at is a forex card issuance, which I’ve already given you in detail. We are already launched the product. We have launched a single currency card variant. We are shortly launching the multi-currency card variant and we are looking at it as a big opportunity, both in terms of direct sales and channel sales. Two or three more things are a little futuristic, but are important growth privates, which is PACB license, which the company is working on it to apply to RBI. Distribution and FXE, very important for us, distribution from a cards perspective and FXE. If that comes through, it will be a big boost for us because then it will help both in terms of spreading our reach to customers far and wide.
So we are also working on a platform, which will help the students for making the fees seamlessly and that’s one activity which we are working on parallelly. When we do all these things, our focus has always been on digital-first because that is the strategic vision, which was formulated by us when we looked at students, we looked at corporates and then digital. These are the three pillars.
Now, of course, we have added the leisure segment to this strategic pivot also, strategic vision and we will be focused on all these four things and drive business because see, our idea is to do things or create solutions, products which create long-lasting value because the real thing is that we need to figure out how to — in a very competitive world where you can see there are a lot of macroeconomic changes, how do you stay relevant, both in terms of our business in terms of gaining market-share and in terms of innovation. We try to marry all these things together to ultimately build shareholders’ value. And I think with this, I’ll come to the end of my presentation. Thank you everyone for being patient and listening to this.
I will now like-to-like to hand over the conference to moderator. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press char and one on the on telephone. If you wish to remove yourself from the question queue, you may press char and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles to ask a question please press char and one now. Participants who wish to ask questions may press please press R&1 at this time.
The first question is from the line of Ankit, an Individual Investor. Please go-ahead.
Aniket Gada
Congratulations on a good set of numbers. I just wanted to — you gave a detailed presentation on an explanation of what the company is growing. I just wanted your view for the next year, like how are we going to navigate all the three segments in number, like how much are we expecting to grow? What’s the goal for all the three segments?
Srikrishna Narasimhan
So essentially, I cannot give you numbers because it will be leading statement. But as I said year-on-year, we have been growing. That’s what I showed you the trend of all the segments. Obviously student segment is under pressure. You are all aware, even today, yesterday we got the news that students visas are temporarily on-hold of in US. So there is a headwinds on the student segment. But obviously, last year also it was headwinds. So the company has grown despite the market degrowing, the company has grown. That is about us gaining market-share.
So our idea will be to gain market-share because market is not growing in students, but what is in our hand is to gain market-share in student segment. Corporate, we are growing year-on-year, we are growing. We are very confident there because corporate is not showing a degrowth. It is showing a slow-growth only. Leisure is growing. Obviously, our first two months has been little difficult because of various macroeconomic factors. But India as a country, leisure travel is growing and there is a analogy I can tell with respect to China’s growth. India’s growth is what China was some 10 years back. And China’s growth over the 10 years, when the GDP grew, the travel also grew equally. It — when the GDP grew fivefold, the travel grew fivefold.
So we also feel India is going the same way and that is where the company is saying, okay, let’s focus here because this is something which is growing, which has grown very sharply. And this is the time where we focus here, which was not a primary focus for us earlier because of smaller ticket size and we are currency intensive business, we are trying to get there to offset any dip in the other segments. So this is what the company is looking at. So we are focused on trying to drive growth in all the businesses and despite whether the market goes down or up, our focus will be to either get into the catch the wind for what do you Call-IT, the leisure segment. When it comes to student, gain the market-share and corporate drive growth in a faster manner.
Aniket Gada
Thanks, sir. In the student segment, traditionally, we were just for — our business was mainly remittance. So now we entered into student P car. So have you got a good response from it regards like anyone who wants to remit for university piece is also buying a student pay card or there is some percentage in like 100, 100 people are applying for elect using our platform for paying fees, but only 50% are using — which wouldn’t pick-up any such numbers there.
Srikrishna Narasimhan
So essentially remittance is bigger because remittance straight analogy we cannot create because remittance is happening three or four times a year because of the you know terms. So but when it comes to our focus is to card every student. But many times in some of the player like geographies, they don’t take too much of foreign-exchange like Canada, hardly a few currencies, they take a little bit of currencies only. But when it comes to other places like US, UK and all, when they travel, that is when they pay the fees now and then they travel on September, they do take a little bit of foreign-exchange, maybe $1,000 to $5,000 for their living expenses.
And for six months — that three to six months, they do load the card. After six months, we have found that people move away from card because they open their bank account. So our focus today is obviously the attachment rate like card attachment to remittances is something which we are driving. In fact, it has been a key focus for us to ensure that every customer — every student gets a card whether the load is small or big and that drive is on. Of course, today, you may say that is not 100%, but our aim is to take it to 100% levels.
Aniket Gada
Thanks for that. Other thing is, just you mentioned that they opened the bank accounts and is there like advantage for them to opening a bank account and using our student pay card?
Srikrishna Narasimhan
So essentially, this is a ForEx prepaid card, right? It has its plus and minus. So whenever a student goes overseas after a point, he opens an account because he needs to — you know it’s like — it’s like a bank account where, see, here there are lot of select MIDs will be blocked also. When it’s a ForEx prepaid card, there are certain things which we allow, certain things are not allowed. Sometimes it may not work-in certain MIDs because of a risk perspective.
And when you are there locally, most of the people try to take after three to six months, they try to get a bank account because more in terms of getting the family maintenance like living expenses, like parents have to transfer money for their living expenses, etc. So invariably an account is opened. While we try to what you say, we would ideally want the student to use our card throughout this two years or one year period, but invariably, while we fine-tune our product to ensure that it is a — it becomes a companion for him. But invariably this is the statistics where we find that people do take a bank account and use the local debit card because they find it much more easier.
So they deposit whatever if they earn something also, they deposit in the bank account and that becomes they use it. But our idea is to see how we can address this need also. And that is something that’s where we talked about the international opportunities, solutions, which we have always been looking at, whether we can do something in that space also where we can provide him some solutions there has been a thought process and also try to fine-tune how we can ensure this offering also meets all his expectations.
Aniket Gada
So it’s been good like first, we were just remitting — remitting about right now we want to be in the whole journey of the student. That’s a very good thought process and I appreciate you for that. I wanted to let go on the corporate side right now. Now corporate like news came out-of-the tariffs and all and the companies right now not going for abroad for meetings and just doing it via phone call or email. So are you experiencing any such that like lower revenues for the 4th-quarter from the corporate side?
Srikrishna Narasimhan
So corporate side, see, as I said, WSFX was focused on currencies. Long back, five, six years back, 30% of the revenues was currency. After that it was remittance, a small portion was corporate. So from our perspective, we have only been growing in corporate because we didn’t have a corporate base five, six years back, right? So whatever year-on-year, we have been only growing because we are acquiring market-share. If we are already acquired a market-share, there is a question of de-growth, whereas we have only been in the acquiring mode. So today we have established a business. Once we go to the next level, then we can think of whether de-growth or something. Today, we are gaining market-share because this was not a business Wall Street had five years or six years back.
Aniket Gada
And this is completely on platform, right, complete on platform.
Srikrishna Narasimhan
Complete, I won’t say, we have around close to 50% on the platform because bigger companies are more ready to get into the platform. There is some resistance by smaller companies. We are working on it, but our aim is to at least reach 80%.
Aniket Gada
Okay. And on the same because the PACB license, he — like I had asked about the PACB license also six months back. Where are we on that on the timeline?
Srikrishna Narasimhan
So we will be applying it shortly because we had to work on it, we had to take approvals, etc. So that is something which is done. So we will be very shortly doing this. We’ll keep you updated on it. Because that’s something as I said, now whatever we put in our last slide, we work on it and we — like our forex card issuance was there for nearly one and a half years, if you remember. And then we launched the card, right? So it takes a lot of work to get things done. You know, there are a lot of processes, maybe certain approvals we have to take internally and also take some NOCs, etc. That is all done and now we will be shortly going ahead with the — applying for license. So then again, it will take some time for the licensing it once you apply, it doesn’t mean that you get it, right? It takes time.
Aniket Gada
Yeah. So are you applying for the export or the export and import both because —
Srikrishna Narasimhan
For both.
Aniket Gada
And like timeline for applying like next two months, three months.
Srikrishna Narasimhan
That is our idea. That’s the idea that we will apply it within this quarter or max before the next quarter ends.
Aniket Gada
Okay, because the competition is growing, people got their license yesterday.
Srikrishna Narasimhan
We are following it. It’s an exciting opportunity. Everyone is excited about it. As I said, the priorities are there. So we are card issuance priority is over now. Now our priority will come to this part of it. In fact, I talked of two, three licenses also in the first screen, which is all interesting like MTSS, PACB, etc. So this next priority is PACB.
Aniket Gada
On the same PACB part or are we — like do we need any new infra — IT infra for this or the platform will be to use the same platform will use for the PACB?
Srikrishna Narasimhan
So our same platform cannot be used. While we have an infrastructure from an acquisition perspective, we have the teams which can be used. But from a IT perspective, we need to build a platform or we need to, you know, use a DSP or something to do this.
Aniket Gada
Okay. So even after getting the license, we will probably be working on the infra space and then rolling out. Maybe not this year.
Srikrishna Narasimhan
So initially we may do a plug-and-play instead of trying to build an infra, right, right? When we launch a card today, we are the issuer, we use the TSP, right? Okay. Okay. No, it’s always about make or buy, right?
Aniket Gada
You can figure it out. There are multiple models of doing things, right yes, that’s true. On the travel space, you just said that you’re using your digital platform and for growing business. Is there any focus on getting the tour operators in as well because from — I’m not sure like how imperative my data is, but from my surrounding people usually do their forex cards from the tour operators themself get the currency from the tour operators themselves. So are we doing that.
Srikrishna Narasimhan
Any — that we are working with quite a few leading tour operators. In fact, you will be seeing a lot of redirections. In fact, we are there in East Matrip also recently. You can get redirected for ForEx to our website. We are also working with leading expense management companies like Zagal. We have also got some 200 to 300 agents who are working with us. Shortly, you will see the digital enablement also for all these people where we are collaborating with them both on the traditional sense and also on the digital sense.
Aniket Gada
Okay. On the final thing regarding the platform, on the slide, it mentioned that 60% of our business is run-through platform. Does it include the agents of ours?
Srikrishna Narasimhan
Yes. Agents also because agent platform drives quite a few of our agents business, corporate for the corporate ordering, D2C, everything put together, but our idea is to slowly pivot from the 50% level to 80% level.
Aniket Gada
Okay. So because when I see the financials of the brokerage and commission sir from a revenue perspective are constant year-on-year. So I was just assuming like how this platform figure of 60% came. So that that’s only —
Srikrishna Narasimhan
See, if you really look at it, we are more of enterprise and a B2B company. You understand. So because our major business comes from our B2B partnerships and enterprise and B2C is going to become the focus where we will see more of the direct-to-customer thing growing. So from our — so when we talk of digital, we talk of all the platforms put together only.
Aniket Gada
Okay. And going back to the PSP and the MTSS, we had MTSS license like a few years, like five, six years back, right?
Srikrishna Narasimhan
We had an MTSS license nearly eight years back, which in fact we sold to Ebix cash at that point of time.
Aniket Gada
So right now, we are just thinking about we are not like —
Srikrishna Narasimhan
Look, there is also a step-by-step process. Today, we have gone into ForEx card issuance was a key focus. Digital was a key focus, segment was a key focus. ForEx card issuance was the next big focus. Now we have launched our product. Now we have to scale it up through distribution, et-cetera. Next is PACB. So we’d like to take a calibrated approach of one thing at a time so that we can do justice to everything we take it up. We don’t want to take it everything together and you know, it may not be easy to manage. But as I said, it’s all-in the roadmap.
Aniket Gada
Okay. This is a — I think this is quite a long roadmap. I think it’s not like next year or something because this makes sense like going step-by-step, but PACB is also quite a difficult task to get approved from the RBI itself.
Srikrishna Narasimhan
By then we will be able to establish our card issuance business in a big way. So next six months-to nine months, our focus will be on getting the direct card issuance business into scale. By then we will have the next engagement like that we will build it.
Aniket Gada
Okay. And the card would be the A&P model or the model. Products, the card business, the revenue would be on the AMC basis or we’ll get a percentage from Visa.
Srikrishna Narasimhan
So this is an issuance model, right? So we are issuer now like a bank. So obviously, the card P&L is based on usage.
Aniket Gada
Okay. So could you just run me through the revenue we get from it, so we will get from it. So I’m not able to understand it.
Srikrishna Narasimhan
Okay. So it’s a very complicated thing. So maybe we’ll have to discuss separately. But in a nutshell, what we can say is when you are a distributor, you work on commissions. When you are issuer, you work on the actual usage of a card, like how a credit card model works or a debit card model works, there is a fee and a float, right? When you swipe a card, there is a merchant MDR, which is then chat by the issuer and the acquirer and the network.
So ideally, when you issue a ForEx card also, it is the usage-based fees which becomes the major part of your revenue, right? So when you use the card in terminal or online, there is a MDR. You must-have heard of MDR when people say UPI MDR Hona. Yes, yes. So same MDRE concepts of MDRA, that is the merchant discount rate or what the merchant pays the network, which is shared between the issuer acquirer and the network and this becomes a major fee component besides other fees which are there.
Aniket Gada
So basically like Visa and Mastercard, how they make revenue is the same model.
Srikrishna Narasimhan
Absolutely, it is all about net. They are the network, we are the issuer, there is also an acquirer who gives the machine and all.
Aniket Gada
Okay. Finally, I would like — I would like to talk about the accounting thing. MS., I just wanted to ask on this deferred tax, right now we have a use of around INR3 crores. Was it the maximum permissible use for this year or could we have this gone further and just wrote-off the whole deferred tax?
Pooja Mishra
No, no. So deferred tax, the amount of deferred tax which is utilized, that much is reversed. So last year deferred tax was not taken, okay? And because there was no virtual certainty seen. Now. Now for two years, whatever loss which was used — utilized since we were profitable, last year also we were profitable. This year also we are profitable. So the brought forward losses which are there, it is utilized, right? So the amount which is utilized is now reversed. So still we have some deferred tax in the asset, which is around INR2 crores or so. So in the next year when it will be utilized, that time it will be reversed. Okay. So basically it’s a — it’s just — it’s an accounting entry. It’s a — you know, it does not have any impact on the cash-flow. It does not impact our operating performance. It is just it’s an accounting entry, right?
Aniket Gada
Yeah. So this INR2 crores that we still have on the balance sheet will be utilized on the quarter-four for the next year or will be just like divided in all the quarters.
Pooja Mishra
This — it is actually auditor’s call how they want to take it up. But yes, every quarter also we can show it. Okay. Okay. Thanks. If they have visibility for the full-year accordingly, a rough calculation on a rough calculation basis, it can be done. No. But we get complete visibility only in the 4th-quarter. Okay. Yeah, because then we calculate the income tax and then we do the — you know, then we can pass this entry.
Aniket Gada
And what would be the tax-rate after that would be applicable for the company?
Pooja Mishra
It is 25%, right, plus surcharge. 22 plus surcharge. Yeah, yeah. So 25 points some — yeah.
Aniket Gada
So basically after the INR2 crore deferred tax usage, we’ll probably be paying tax next year.
Pooja Mishra
Yes, yes. Yes.
Aniket Gada
On the employee benefit expense, there has been a degrowth. So is it due to the CTO resigning or this like some —
Pooja Mishra
No, no. If you say year-on-year, there has been growth. Are you comparing with the quarter?
Aniket Gada
Yeah, the previous quarter.
Pooja Mishra
With the previous quarter, actually this quarter, there was a lot of expense on employees, which was done towards building the product or when we issued our card. So that amount is capitalized. Okay. Yeah. So if you see year-on-year, there has been growth in employee cost, but that has been a reasonable growth for the new hires which are done for the growth of the company.
Aniket Gada
So that I can understand. I just wanted to know the de-growth from quarter-on-quarter that was a 40 lakh — because of the CTO resigning. Have you —
Srikrishna Narasimhan
Here resigned long back, right? Four, three, four quarters back, so it won’t have an impact on the last quarter.
Pooja Mishra
Yes.
Aniket Gada
Okay. Okay. On the other part, on the ESOPs, how many — how much ESOPs are we issuing this year for FY ’26 and what will be the dilution?
Pooja Mishra
A new grant see, we already have some 17.5 lakhs of ESOP, which was as per 2018 ESOP plan. And out of that only the ESOP issue and new grants are done. We are still left with around lakh shares to be granted. And post that if the company will again come up with some other with the next plan, then we will have some impact on dilution and all. Dilution is on exercise basically. So as the employees exercise, that time we will have dilution.
Aniket Gada
Because there has been a sizable increase in number of.
Pooja Mishra
Yes, yes, yes, because our company has been doing good. So people are now exercising their.
Aniket Gada
Okay. And the expense would be around how much for the next year?
Pooja Mishra
Which expense?
Aniket Gada
ESOP expense because the company accounted for around INR51 lakhs this year. For next year, what would be the —
Pooja Mishra
See the calculation of ESOP is based on the actual valuation. So actually values and they give us, yearly we get a valuation report from the actuary. They check the current market price and accordingly they do a calculation and send it to us. Accordingly, we are supposed to, you, you know, take it in the books.
Aniket Gada
Okay. So yes, can I assume like around INR50 lakhs would be that because 1 lakh issuance is there, right? So,
Pooja Mishra
No, no, no. So for INR1 lakh issuance, it is not INR50 lakh because 1 lakh issuance, it is always ESOP is that in a — you know the exercise of ESOP is over a period of three, four years. It’s not that we give the ESOP and the employee can — there is a vesting period which is there, right? And in the plan, it is like 30, 30, there are percentages attached. Okay. So the entire thing and does not come in one year.
Aniket Gada
Okay. But still 1 lakh odd ESOPs remaining like that to be exercised, right?
Pooja Mishra
No, not exercising granted. ESOP exercise or ESOP, I will have to check.
Aniket Gada
Yeah, yeah. Okay, sure. Other thing other than that, on the dividend thing, like Sri said, we are looking to grow business and I wanted to ask a shareholder, like it’s a massive dividend payout, like 50% of EPS is going for dividend. I just wanted to ask like if you are going to grow like much higher than the market. Is it like wise to pay such a high dividend? Otherwise just use that for internal accruals to gain more business?
Srikrishna Narasimhan
So see, last year when we — we were a dividend-paying company for I think the last seven years say, we would have paid it three times. So we had paid it at 1.5, right? And when we were at loss, we stopped paying dividend. But it’s a good thing that when the investor is waiting patiently to also reward in the company performs. So last year, when we became profitable, there was a discussion whether we should go to 1.5 or 1. At that point, we decided that let’s be prudent, let’s see for one more year before we come back to the at that 1.5 levels.
This year, when we grew from INR4 crores to INR6 crores, we felt prudent that this should be a signal to our investor also that we are — we are considering their interest also. Parallelly, the company liquidity position is also very good. We are able to get — thanks to our consistent profitability, we are able to also raise our capital for our growth plans, et-cetera, because the capital requirements are much higher than maybe INR50 lakhs of the dividend, which is what would have been the difference between INR1 and INR155.
So we felt it is prudent that it should also signal that the company is quite confident in terms of growth and we want to reward the shareholders at the same level which we had expected. So that was the thought process which was discussed at the Board level and Board had decided on that because various options were discussed and the Board decided that this will be the right thing to do. And that is why the INR1.5 — INR1.5 per share has been, you know, recommended.
Aniket Gada
Okay. So I just wanted to ask, so we do have enough interval accruals for the growth for the next year, right, or it. So I’m just asking, do we have enough balance in our books to grow or will we require some external financing to grow for the next year?
Srikrishna Narasimhan
Well, we have capital. We also have borrowed funds, we have banking limits through which we drive our business because capital requirements are always there in our business. The higher we grow, we will have requirements, but that’s where we also take limits from banks, right?
Pooja Mishra
But it is all temporary requirement now because we immediately get the payment also from the customer. We are not giving much — most of the things on credit, right? Only our corporate business is on credit. The rest of the businesses are not on credit.
Aniket Gada
Yeah, because there is a RBI rule like you have — you need to have certain percentage of GTO as fixed deposits the bank, right, for this remittance?
Pooja Mishra
No, no, actually are enough. That is that you are talking about our net owned funds requirement, which we have enough?
Aniket Gada
Yeah. And apart for that, the card business and all, I just was — I just wanted a clarity on that. We have enough funds to pay plus grow the business. So yeah, thanks a lot for answering my questions and I hope we have a very good year. Thank you.
Pooja Mishra
Thank you. Thank you.
Srikrishna Narasimhan
Thank you very much.
Operator
Thank you. Ladies and gentlemen, we would like to remind that you may press to ask a question participants who wish to ask questions may press RN1 at this time. As there are no further questions, I would now like to hand the conference over to Mr and Ms for closing comments.
Srikrishna Narasimhan
Yeah. I would like to thank everyone for joining us on this call. It’s been a pleasure. For any further queries, you can write to the company secretary or visit our website. Thank you once again, and I know we request the moderator to conclude this. Thank you so much.
Pooja Mishra
Thank you so much.
Operator
On behalf of WSFX Global Pay Limited, we thank you for joining us and you may now disconnect your line.