Dreamfolks Services Limited — Q2 FY26

Dreamfolks Services Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=j5h_rtqpx_I Published: 6 months ago

0:00 [Music] 0:03 3 seconds Ladies and gentlemen, good day and welcome to the Dream Folk Services Limited Q2 FY26 earnings conference 0:09 9 seconds call. As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation 0:18 18 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchstone phone. 0:27 27 seconds Please note that this conference is being recorded. From the management we have with us Miss Libera Kalip, chairperson and managing director, Mr. 0:37 37 seconds Balaji Sinwasan, executive director and chief technology officer. Mr. Shakhar 0:43 43 seconds Sud, chief financial officer, Mr. Sepon, Chief Business Officer. 0:50 50 seconds I now hand the conference over to Miss Liberta Kalip, chairperson and managing director for the opening remarks. Thank you and over to you ma'am. 1:02 1 minute, 2 seconds Good evening everyone and thank you for joining us for the dream folks quarter 2 and half yearly FY26 earnings call. As 1:10 1 minute, 10 seconds we reflect on the second quarter of financial year 26, this period is defined by significant transition and 1:17 1 minute, 17 seconds residence. We have navigated a pivotal period in our journey. One defined by strategic evolution and purposeful transformation. 1:28 1 minute, 28 seconds The cus take decision steps to realign our business with the changing dynamics 1:35 1 minute, 35 seconds of the industry including the thoughtful transition of key business stream that had served us well in the past. These 1:44 1 minute, 44 seconds are not just necessary decisions, but forward-looking ones guided by a clear vision of where the industry is headed and where Dream Folks can create the 1:53 1 minute, 53 seconds most enduring value. While the impact of these decisions would be visible in our numbers in the short term, but the 2:00 2 minutes actions we have taken has strengthened our foundation and positioned dream folks for its next phase of growth. One 2:07 2 minutes, 7 seconds that is more diversified, resonant and in sync with the aspirations of the modern travelers and experience-driven consumers. 2:16 2 minutes, 16 seconds Dreamforce forward strategy is closely aligned with the evolving landscape of India's travel industry. one defined by 2:23 2 minutes, 23 seconds rapid railway modernization, activated highway development, and a growing appetite for international travel and 2:30 2 minutes, 30 seconds premium lifestyle experiences driven by rising disposal incomes. 2:35 2 minutes, 35 seconds These transformative trends collectively create a strong demand for premium lounge access and lifestyle services 2:42 2 minutes, 42 seconds across railway stations, highways and international destinations catering to the needs of today's discerning and global globally connected travelers. 2:53 2 minutes, 53 seconds Before we dive deeper into the results for the quarter ended September 30, 2025, I am delighted to announce our recent acquisition of 101 hospitality 3:02 3 minutes, 2 seconds LLC which marks a significant milestone in Rainforol's growth journey. Having redefined travel and lifestyle 3:09 3 minutes, 9 seconds hospitality in India by democrat democratizing lounge access and serving over 11 million passengers in FY25. 3:20 3 minutes, 20 seconds Green Fox is now po to bridge the prim primomization gap that exists in railway 3:27 3 minutes, 27 seconds travel with more than 7.15 billion passengers using Indian railways in FI 20 202425 3:35 3 minutes, 35 seconds and large scale infrastructure upgrades underway. The railway loun segment represents a substantial and fast 3:42 3 minutes, 42 seconds emerging growth frontier through the acquisition of 101 hospitality which has a presence at key 3:49 3 minutes, 49 seconds railway lounge locations such as Chennai, Mumbai and Vadodra with Chennai already operational and the other two set to commence soon. Dreamforce secures 3:59 3 minutes, 59 seconds direct ownership and operational control over premium railway launch infrastructure. This strategic move reinforces our integrated travel 4:08 4 minutes, 8 seconds ecosystem and accelerates long-term value creation. By vertically integrating lounge operations, we 4:15 4 minutes, 15 seconds strengthen our partnership across the value chain, enhance service viability, and mitigate the business risk associated with third party dependencies 4:24 4 minutes, 24 seconds while laying the groundwork for rapid expansion into additional hightra railway hubs across the country. 4:35 4 minutes, 35 seconds Talking about our performance in the quarter ended 30th September 2025. Our revenue for the quarter stood at 205.5 4:44 4 minutes, 44 seconds crores. Gross profit came in at 29.2 crores with a margin of 14.2%. 4:51 4 minutes, 51 seconds ETA came in at 16.1 crores with a person and patch came in at 11.2 crores at a margin of 5.5%. 5:02 5 minutes, 2 seconds While our revenues experienced a decline, across EITA and part margins have shown healthy year-on-year expansion. 5:10 5 minutes, 10 seconds A strong balance sheet continues to provide the financial resilience and flexibility needed to invest in technology, pursue strategic 5:18 5 minutes, 18 seconds partnerships, and drive growth both organically and through selective inorganic opportunities. 5:26 5 minutes, 26 seconds In response to this shift, Green Force is executing a well-defined strategic shift built around four key pillars 5:33 5 minutes, 33 seconds which are global expansion, client diversification, premium lifestyle services, addition and technological and 5:42 5 minutes, 42 seconds technological transformation which will help in positioning us strongly for a long-term and sustainable growth. 5:50 5 minutes, 50 seconds Our efforts on global expansion have also started reaping benefits. All the major lounges in the Southeast Asia and 5:57 5 minutes, 57 seconds Middle East market are now under our coverage. Our monthly global lounge transaction volume has already more than 6:04 6 minutes, 4 seconds doubled from Q1 by 26 and we expect it to grow many fold in the coming quarters. 6:12 6 minutes, 12 seconds We now have 900 plus global airport touch points outside India. 6:18 6 minutes, 18 seconds On the client diversification side, we are focused on creating strong recurring revenue streams with high retention. 6:25 6 minutes, 25 seconds Over the past year, we have added more than 30 new enterprise clients across the fintech, travel, and lifestyle sectors. To enhance engagement and 6:35 6 minutes, 35 seconds loyalty, we are offering curated bundles that include global lounge access, social club memberships, coffee at the 6:42 6 minutes, 42 seconds mall, benefits, travel dining, and a range of wellness and entertainment services. enabling our partners to 6:50 6 minutes, 50 seconds deliver differentiated experience to their customers and employees. 6:55 6 minutes, 55 seconds We continue to reduce dependency on one service by scaling at adjacent and innovative offerings such as access to 7:03 7 minutes, 3 seconds membersonly social clubs, golf, railway lounges, coffee at the mall and hybrid dining. All designed to serve the modern 7:11 7 minutes, 11 seconds traveler and urban customer beyond airport touch point. Our non-lounge services also continue to grow, 7:18 7 minutes, 18 seconds validating our strategy of evolving from a lounge aggregator into a broader travel and lifestyle experiences platform. 7:27 7 minutes, 27 seconds Our premium offering active to members only social club was also made live with one of the leading global banks during the quarter. 7:36 7 minutes, 36 seconds As we expand our sales portfolio, we are also accelerating investments in our backbone, our tech infrastructure, 7:43 7 minutes, 43 seconds ensuring our platform becomes increasingly agile, scalable, and align to the dynamic needs of our partners. 7:51 7 minutes, 51 seconds Our new offerings are designed to meet the rising demand for premium everyday conveniences and lifestyle experiences. 7:58 7 minutes, 58 seconds By continuously expanding our service portfolio, we are evolving the customer value proposition for our clients and their customers from just travel focused 8:07 8 minutes, 7 seconds services to a comprehensive travel and lifestyle mobility ecosystem. 8:13 8 minutes, 13 seconds We will soon see a huge upgrade in the benefits being offered by the credit card companies. 8:20 8 minutes, 20 seconds Moving on, during the global fintech fest in October 2025, we executed a major strategic pivot, leveraging our 8:28 8 minutes, 28 seconds core aggregation capabilities to expand our direct to consumer and digital offerings. This comprehensive initiative 8:36 8 minutes, 36 seconds was headlined by three critical launches. First, the introduction of the Dream Folks Club 2.0, a premium B2C 8:44 8 minutes, 44 seconds membership platform. This represents a significant shift from being purely travel ccentric to becoming a holistic 8:51 8 minutes, 51 seconds lifestyle platform. Consolidating global now taxes with a comprehensive suite of benefits including social club 8:59 8 minutes, 59 seconds memberships, golf privileges and wellness services significantly broadening our addressible market and 9:06 9 minutes, 6 seconds driving sustainable margins. Second, we reinforced our fintech integration strategy through our partnership with 9:14 9 minutes, 14 seconds WSFX Global Pay Forex card. This initiative strategically invents our 9:21 9 minutes, 21 seconds extensive lounge and travel privileges such as meets and echo transfers directly into the payment ecosystem, 9:28 9 minutes, 28 seconds ensuring a seamless integrated experience for travelers using forex and travel payment solutions. 9:36 9 minutes, 36 seconds Finally, we collaborated with the card company to power wallet India's first premium digital wallet of PPI rails. 9:45 9 minutes, 45 seconds This piling product democratizes access to elite experiences including our global airport lounge access and premium 9:54 9 minutes, 54 seconds experiences across the entire consumer life cycle. Now coming to the industry dynamics over the next four years 10:02 10 minutes, 2 seconds India's price cards issuance is projected to double to approximately 200 million cars by FI2829 10:10 10 minutes, 10 seconds supported by nearly 15% tagger cut transactions volume and value are 10:17 10 minutes, 17 seconds both expected to expand by 21% and 18% respectively. 10:23 10 minutes, 23 seconds India's premium private club market is expanding rapidly driven by rising affluent c consumers seeking exclusive 10:31 10 minutes, 31 seconds highquality lifestyle and network experiences. The sector is projected to 10:36 10 minutes, 36 seconds grow from 576 cr in 2024 to 941 cr by 10:43 10 minutes, 43 seconds 2029 at a close of 18,000 k. These clubs are evolving from recreational venues to 10:51 10 minutes, 51 seconds sophisticated community hubs for socializing, business, wellness and fine dining. With the continuous growth in 10:58 10 minutes, 58 seconds the high net worth households, demand for premium membership based lifestyle offering is set to accelerate further. 11:06 11 minutes, 6 seconds The global lounge industry is also expected to grow significantly. Global passenger traffic is forecasted to 11:13 11 minutes, 13 seconds exceed 12 billion by 2030 driven by growth in Apac and Middle East regions. 11:20 11 minutes, 20 seconds The global airport lounge market is also projected to grow at 14.1% KGA from 2025 11:27 11 minutes, 27 seconds to 33 fueled by business travelers, leisure passengers and airline loyalty membership. 11:35 11 minutes, 35 seconds The already talks and railway lounge industry is expected to see a boom in the coming years due to the government's initiative to modernize the railway 11:44 11 minutes, 44 seconds network of the country as well as increasing awareness of the consumers. 11:49 11 minutes, 49 seconds INR 2,400 billion capex is allocated to railways in FY25. 11:55 11 minutes, 55 seconds Also, India is expected to account for 40% of global rail activity by 2050. 12:02 12 minutes, 2 seconds We intend to play key role in the exploiting these industry macros and we are well positioned to take advantage of the same. 12:12 12 minutes, 12 seconds To summarize, while this quarter's financial performance reflects a period of transition, we view it is a stepping 12:19 12 minutes, 19 seconds stone towards stronger more diversified growth. The coming quarter may continue to reflect the short-term impact of 12:26 12 minutes, 26 seconds recent industry disruptions affecting lounge access to select locations in India. However, we remain confident in 12:34 12 minutes, 34 seconds our ability to navigate this space effectively. Our global launch business continues to scale rapidly and with the 12:42 12 minutes, 42 seconds introduction of new age benefits on credit cards and enterprise programs. We are well positioned to regain momentum 12:50 12 minutes, 50 seconds and deliver sustainable growth in the quarters ahead. At Dreamforce, we are not merely facilitating travel. We are 12:59 12 minutes, 59 seconds reimagining how people experience moment comfort and lifestyle across the world. 13:04 13 minutes, 4 seconds We are excited about the opportunities that lie ahead and remain deeply committed to shaping the future of premium travel and lifestyle experiences 13:14 13 minutes, 14 seconds alongside our partners, clients and investors. 13:18 13 minutes, 18 seconds Thank you for being part of this journey. Over to you Sunday. Thank you. 13:24 13 minutes, 24 seconds As we look back at the second quarter of FY26, it stands out as a defining phase of transition and determination. This 13:33 13 minutes, 33 seconds quarter has challenged us in ways few others have in the past as we navigated fundamental changes in our industry 13:40 13 minutes, 40 seconds landscape, reassessed our operating model and made this strategic decisions to scare down a legacy revenue stream 13:48 13 minutes, 48 seconds that once played a central role in our business. These choices were made thoughtfully and with conviction shaped 13:55 13 minutes, 55 seconds by forward-looking view of market evolution and clear understanding of where our competitive strengths will deliver lasting advantage. 14:05 14 minutes, 5 seconds Dreamforce was infected with the vision of redefining travel services and over the years we have successfully 14:13 14 minutes, 13 seconds established ourselves in the indust as industry leaders. Today, the company has evolved into a comprehensive travel and 14:21 14 minutes, 21 seconds lifestyle benefits platform, continually broadening the portfolio of services. 14:26 14 minutes, 26 seconds Our strong and long-standing client relationship continues to be part of our biggest asset. We are further strengthening these partnerships by 14:34 14 minutes, 34 seconds working closely with our clients to jointly develop new CVP models that go beyond conventional airport offerings. 14:43 14 minutes, 43 seconds We have also recently launched our revamped club membership. 14:47 14 minutes, 47 seconds It is a step in manifesting our founding belief to make premium travel and lifestyle experiences accessible to all 14:54 14 minutes, 54 seconds aspirants. We are now extending premium travel and lifestyle benefits like access to members only club, golf, 15:00 15 minutes railways, lounges, global lounges, beauty and grooming, healthcare, etc. to a wide range of customers. 15:09 15 minutes, 9 seconds During the second quarter, one of our premium offerings access to membersonly uh clubs has been made available to one 15:18 15 minutes, 18 seconds of the global banks premium customer. We continue to build a strong and expansive network. Our global footprint also 15:27 15 minutes, 27 seconds expanded now offering access to over 900 global airport touch points worldwide, ensuring seamless travel experience for our customers wherever they go. 15:38 15 minutes, 38 seconds Geographical expansion continues to be at the core of our strategic pillar. 15:44 15 minutes, 44 seconds Within India, we are deepening our footprint across emerging cities and travel hubs, benefiting from rapid infrastructure development and increasing aspirational travel. 15:55 15 minutes, 55 seconds Internationally, we now enable access to 100 plus countries through 3,000 plus touch points spanning lounges, wellness 16:04 16 minutes, 4 seconds experiences, golf access, meet and assist, and other premium services. This broad network not only enhances our 16:12 16 minutes, 12 seconds customer reach, but also strengthens our business resilience, allowing us to diversify demand across markets and platforms. 16:22 16 minutes, 22 seconds In lifestyle access services, our golf portfolio showed strong momentum. We added 200 new touch points, expanding 16:30 16 minutes, 30 seconds our global network to 850 plus clubs and increasing our India presence to 73 clubs. Our new premium service services 16:39 16 minutes, 39 seconds like coffee at malls where more than 100 outlets have gone live in the second quarter and access to 3,000 plus members 16:47 16 minutes, 47 seconds only social club are also becoming increasingly popular. In summary, the four pillars which are global expansion, 16:55 16 minutes, 55 seconds client diversification, premium lifestyle service addition and technological transformation form the 17:02 17 minutes, 2 seconds foundation of a forward strategy. They reduce category dependence and open up pathways for sustainable high margin growth. 17:12 17 minutes, 12 seconds Q2 FY26 has been a quarter where we have made a paradigm shift in our business strategy and our approach going forward. 17:21 17 minutes, 21 seconds As we continue to execute the CL with clarity and discipline, we remain confident in our strength of our 17:28 17 minutes, 28 seconds platform, the depth of our partnership and the directions we are heading to. Over to you Bala. 17:37 17 minutes, 37 seconds Thank you. 17:41 17 minutes, 41 seconds I'm pleased to share how our strategic investments in technology and innovation are driving tangible results, 17:49 17 minutes, 49 seconds enhancing client solutioning and consumer experience and optimizing operational performance 17:57 17 minutes, 57 seconds and thus reinforcing our position as a trusted partner across multiple industries. 18:03 18 minutes, 3 seconds We are at an inflection point in our technological evolution. Our strategic transformation is built on a modern 18:10 18 minutes, 10 seconds cloud-based platform that enables rapid solutioning and fast goi for our clients. 18:16 18 minutes, 16 seconds Critically, we are integrating artificial intelligence and machine learning models into our tech framework 18:24 18 minutes, 24 seconds and thus unlocking new capabilities in personalization, analytics and automated operational processing. 18:32 18 minutes, 32 seconds The recent updates has elevated our platform from a purely benefit aggregation tech to a consumer value 18:39 18 minutes, 39 seconds proposition designer, allowing our clients to leverage it as a strategic differentiator. 18:45 18 minutes, 45 seconds Allowing them to deliver specific, intuitive, and personalized experiences for our clients increasingly digital first consumers. 18:54 18 minutes, 54 seconds The adaptability of our in-house tech positions us for sustainable growth as we expand our client and service space into new verticals and geographies. 19:06 19 minutes, 6 seconds A particularly powerful capability is our machine learning driven intelligent orchestration system which gives our 19:12 19 minutes, 12 seconds clients unprecedented flexibility in personalized service selection, pricing and consumption. 19:20 19 minutes, 20 seconds This tech leverages the tools to enable dynamic selection and combination of both traditional as well as the new and 19:29 19 minutes, 29 seconds the next generation services allowing clients to target and configure solutions for specific consumer cohorts that align precisely with their 19:37 19 minutes, 37 seconds objectives, preferences and budget parameters. 19:41 19 minutes, 41 seconds This strategy leverages a fundamental competitive advantage. a platform that is already class leading with 19:48 19 minutes, 48 seconds technologies like cohort based benefits based models usage based models funibility of benefits benefit 19:55 19 minutes, 55 seconds allocation etc and which is already integrated into our client ecosystems now I will hand over to Shikhar for an 20:03 20 minutes, 3 seconds update on the financials thank you VA and a very good evening to everyone I will begin by giving you the 20:12 20 minutes, 12 seconds Q2 FYI 26 highlights First the company reported a revenue of INR205.5 20:19 20 minutes, 19 seconds Kores compared to INR 316.9 K in Q2 FY25. Gross profit stood at INR 29.2 20:28 20 minutes, 28 seconds Kores in Q2 FY26 as compared to INR 39.2 crores in Q2 FY25. Gross profit margin 20:36 20 minutes, 36 seconds was at 14.2% in Q2 FY26 compared to 12.4% 4% in Q2 FY25 20:45 20 minutes, 45 seconds adjusted EIA was at 15.6 crores compared to 25.4 crores in the same quarter of 20:52 20 minutes, 52 seconds the last year. Adjusted EIA margin was at 7.6% as against 8% in Q2 FY25. 21:00 21 minutes Profit after tax was at INR 11.2 crores as compared to INR 16 crores in the same quarter of the last year. at margin is 21:09 21 minutes, 9 seconds at 5.5% in Q2 FY26 from 5.1% in Q2 F25. 21:16 21 minutes, 16 seconds We continue to have a strong balance sheet with our net worth currently at INR 333.1 21:23 21 minutes, 23 seconds K up from up by 25.8% compared to the same time last year. our cash and cash 21:31 21 minutes, 31 seconds equivalent balance as at quarter end stood at INR 141 KES. 21:37 21 minutes, 37 seconds Now moving to highlight for the H1 April 26 the company reported a revenue of INR 21:44 21 minutes, 44 seconds 554.5 crores against INR 637.7 crores last year. Gross profit for H1 21:54 21 minutes, 54 seconds FY26 was at INR 75.8 crores from INR 76.8 8 crores in H1 FY25. 22:03 22 minutes, 3 seconds Gross profit margin was at 13.7% in H1 FY26 versus 12% in H1 FY25. 22:12 22 minutes, 12 seconds Adjusted EVA for the H1 F26 was at INR 46.1 K as against INR 51.1 K in the same 22:22 22 minutes, 22 seconds quarter last year. Adjusted DIA margin was at 8.3% in H1 F.26 26 as compared to 22:30 22 minutes, 30 seconds 8% in H1 F_Y25 stood at INR 32.5 K in H1 FY26 and INR 22:39 22 minutes, 39 seconds 33.2 KES in H1 FOY 25 PAT margin in H1 FY26 was at 5.9% versus 5.2% 2% in H1 22:49 22 minutes, 49 seconds F125. The diluted earning per share for H126 to that INR6. 22:57 22 minutes, 57 seconds Our commitment to delivering sustainable growth remains strong supported by key factors. A robust financial history and 23:04 23 minutes, 4 seconds an agile tech platform. These strengths combined with strategic initiatives promise a reliable long-term revenue stream. 23:13 23 minutes, 13 seconds Now with that I would like to close my remarks and we are happy to open the floor for questions. 23:20 23 minutes, 20 seconds Thank you very much. We will now begin with the question and answer session. 23:26 23 minutes, 26 seconds Anyone who wishes to ask a question may press star and then one on their touchstone phone. If you wish to remove yourself from the question queue, you may press star and then two. 23:37 23 minutes, 37 seconds Participants are requested to use handsets while asking a question. 23:42 23 minutes, 42 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. Again, to register for a question, please press star and then one. 24:26 24 minutes, 26 seconds Our first question comes from the line of Ashish Bahi, an investor. Please go ahead. 24:35 24 minutes, 35 seconds Hi, good evening. Can you hear me? Yes, aloud and clear. Please go ahead. 24:41 24 minutes, 41 seconds Yeah. Hi. Uh, I have uh two questions here. First of all, I want to congratulate uh the team who is working 24:48 24 minutes, 48 seconds very hard uh in this difficult time you have gone through over last uh I mean H1 24:55 24 minutes, 55 seconds and uh you are trying your best so that's good. Uh one observation was our employee cost as compared to last 25:03 25 minutes, 3 seconds quarter of the same period it has slightly came down. Are we doing any specific uh changes there to reduce the 25:12 25 minutes, 12 seconds employee cost or it is because of this changes in the I mean segment we are doing. Uh second question is our cash 25:20 25 minutes, 20 seconds and bank balance have gone down almost by I believe 90 million uh put together cash and bank balance overall cash flow 25:29 25 minutes, 29 seconds also in working uh working capital uh almost about 41 cr has invested into 25:37 25 minutes, 37 seconds operation. So I want to ask about the reason for this too. Uh thanks. 25:45 25 minutes, 45 seconds Okay. So uh for the employee cost uh uh if you see like majorly there is a reversal for the cost for the employees 25:53 25 minutes, 53 seconds who had left and uh so that's a major thing that is there otherwise uh like there is no other uh headcount is 26:02 26 minutes, 2 seconds leaving or something like this is nothing happening mostly the things are in control and uh this is what we see employees are fully confident uh uh on 26:10 26 minutes, 10 seconds dream fork regarding your second point uh which you are asking for cash and cash equivalent. So here if you you have 26:19 26 minutes, 19 seconds to see the cash cash equivalent in complete including the investment. So on the investment fund so there are uh 26:27 26 minutes, 27 seconds investment that we have done in the debt mutual fund. So that is there and coming to another question which was regarding 26:35 26 minutes, 35 seconds the payment of the creditor. So yes so as per the MSNE act we have to release 26:42 26 minutes, 42 seconds our payments to the uh vendors. all the small vendors and other vendors they they will made the payment as per their schedule. So that's why you see that 26:51 26 minutes, 51 seconds there is a payment happening on the citor fund. However, uh on the trade receivable fund we are uh we are yet to 26:58 26 minutes, 58 seconds receive our fund. So in the 30 days or like in the similar time period we will be getting the inflows. So that's why 27:05 27 minutes, 5 seconds you would see that even compared to last quarter in total when you will see all these cash and cash equivalent including with the investment then the fund flow 27:13 27 minutes, 13 seconds has actually increased. So now it stands at nearly 141 cr as compared to uh last 27:21 27 minutes, 21 seconds quarter it was only 48 cr and we will see this trend happening because if you if you would have analyzed our balance sheet more and deeper our current 27:29 27 minutes, 29 seconds liabilities have reduced quite a lot whereas our receivables so we will just be now collecting the money and then our cash flow will keep on increasing and if 27:37 27 minutes, 37 seconds you would have seen our net worth also so it it stands at 333 cr in control number so we are about to reach to that balance even in front. 27:49 27 minutes, 49 seconds Okay. Uh thank you that that is uh uh helpful. And just one more suggestion uh on page 13 of investor relationship the 27:58 27 minutes, 58 seconds India's map uh the P is not shown as a part of India. So please take care going forward. That's it. Thank you. 28:09 28 minutes, 9 seconds Thank you. Before we take the next question, a reminder to all the participants, you may press star and then one to ask a question. 28:19 28 minutes, 19 seconds Our next question comes from the line of Nlesh Doshi from Prosperity Tree Asset Management. Please go ahead. Am I audible sir? 28:29 28 minutes, 29 seconds Hello. Yes. Are you audible? Please go ahead. 28:33 28 minutes, 33 seconds Thanks. Thanks. Thanks for the opportunity. First of all, I would like to say best luck to the team of dreams for their success in the company's 28:42 28 minutes, 42 seconds transformation. It's happening any business. So I I like your courage and transformation process. Uh 28:51 28 minutes, 51 seconds I I would like to know the what what percentage of revenue in the quarter two is from the airport launch. Number one. 28:59 28 minutes, 59 seconds Number two, uh do we have still any contract uh live with the domestic uh 29:06 29 minutes, 6 seconds airport languages or uh we are completely exited from that business? 29:12 29 minutes, 12 seconds That is the my first question. Uh and second are we shifting our asset light model to asset based model because just 29:20 29 minutes, 20 seconds recently we have acquired the some uh stake in the company which have a railway access railway railway launch uh 29:30 29 minutes, 30 seconds that's that two two question from the my side. 29:39 29 minutes, 39 seconds So the majority uh uh of uh the business or revenue is from the India airports 29:46 29 minutes, 46 seconds itself uh in Q2. So that is to respondse to your first question. Uh your second 29:54 29 minutes, 54 seconds question in terms of uh the continuation of the business in uh airport in India 30:01 30 minutes, 1 second domestic lounges. So I would say that uh you know you you would have actually seen and we actually communicated to you 30:09 30 minutes, 9 seconds that uh yes uh the domestic program is discontinued. However, our contracts 30:16 30 minutes, 16 seconds with all our uh bank partners are uh still live and that's the only reason what we were mentioning about uh you 30:25 30 minutes, 25 seconds know uh initiating or starting this new services what we were speaking about and you will start seeing that in couple of 30:34 30 minutes, 34 seconds months uh uh you know these programs will also go live. Uh in terms of lounge business uh the global lounges uh uh are 30:43 30 minutes, 43 seconds growing and yet uh our same clients which are which were working for our domestic lounge are also migrating and 30:51 30 minutes, 51 seconds working with us closely for the global lounge uh lounges as well. To your question about uh the business which is 30:58 30 minutes, 58 seconds an asset light and now we are moving to a different uh business. Uh so to talk 31:05 31 minutes, 5 seconds about this I would say that uh yes as a company we have actually taken uh uh this move one because we have also 31:14 31 minutes, 14 seconds learned one of the biggest thing in terms of uh the risk to the business because the dependency on uh the 31:20 31 minutes, 20 seconds operator was huge. Secondly right now in terms of investment into railways would not be as heavy what it you it would be 31:30 31 minutes, 30 seconds at the airport uh lounges. So that is also one of the things we thought that okay and it is the right time right now 31:37 31 minutes, 37 seconds because uh it is at a very initial stage in terms of uh uh privatization in terms of uh uh getting the infrastructure 31:45 31 minutes, 45 seconds changes at the railways. So uh at a minimal cost I think uh we are entering at this point and uh I think uh this 31:53 31 minutes, 53 seconds will actually secure and we would be risk-free in the business what we are getting into. 31:59 31 minutes, 59 seconds So can can we expect affect the same run rate of quarter two in the coming quarter or will it be much more less than the 205 crores? 32:10 32 minutes, 10 seconds Uh it would be much lesser because as I told you that the majority of the volume is from uh in Q2 is from uh domestic 32:19 32 minutes, 19 seconds airport lounges. Uh so of course the Q3 will not have these numbers. It would uh the top line will drop. 32:28 32 minutes, 28 seconds Okay. Okay. Okay. Madam and once again all the best from the my side and uh be confident that definitely we will rise again. 32:38 32 minutes, 38 seconds Thank you so much. 32:41 32 minutes, 41 seconds Thank you. Our next question comes from the line of Mahul Pawani from 40 Cents. Please go ahead. 32:50 32 minutes, 50 seconds Hello. Thank you so much for the opportunity. Um I I would like to understand what kind of investments we have made in the railway uh segment uh because I'm not aware. 33:06 33 minutes, 6 seconds Hello. Am I audible? 33:10 33 minutes, 10 seconds Yeah. So we have done uh investment of 11.46 cr. 33:17 33 minutes, 17 seconds Okay. And and what what what have we invested in? Sorry. 33:22 33 minutes, 22 seconds So we have acquired a st of yeah so we have acquired a st of 50.01% with the uh effective control there. 33:31 33 minutes, 31 seconds Uh so I'm still not I'm not still clear what asset are purchased. 33:42 33 minutes, 42 seconds Uh so if you actually look at uh the lounges these are uh taken on lease. Uh 33:49 33 minutes, 49 seconds so it is in the same model the way the airport lounges are. So the airport actually gives on lease for 9 to 12 33:57 33 minutes, 57 seconds years. Similarly is the same process at the railways. The railways is giving it to the operator to on lease for starting from 5 years to 7 to 9 years onwards. 34:10 34 minutes, 10 seconds And that property uh on lease is then given to the operator. the operator uh 34:17 34 minutes, 17 seconds actually builds the lounge and then also operate uh takes uh I mean takes care of the operations as well. So the whole and 34:25 34 minutes, 25 seconds soul business at that place during the lease period would be with that operator. 34:32 34 minutes, 32 seconds Okay. So so sorry I'm not able to hear you very well. Hello. 34:40 34 minutes, 40 seconds No sorry you was asking something. 34:43 34 minutes, 43 seconds Yeah, I was just trying to clarify ma'am. Um, so uh uh in this case when you said the operator for the railway 34:50 34 minutes, 50 seconds sector are we the operator or we are the I mean what is our role is it are are we the operator? 34:58 34 minutes, 58 seconds Yes. So 101 is the operator which company where we have actually done the acquisition. So yes now we become the operator. 35:08 35 minutes, 8 seconds Okay. And and we have uh how much stake have we bought in 101? It is 50.01. 35:16 35 minutes, 16 seconds 50.01. Okay. 35:19 35 minutes, 19 seconds Okay. And uh how much what kind of access does it give? I mean are we present in which which cities uh in the railways? 35:29 35 minutes, 29 seconds So presently it is in Chennai, Mumbai and Vadodra. So Chennai is operational. 35:36 35 minutes, 36 seconds Mumbai should be operational in next 10 to 15 days and Vodra in uh I would say in couple of months. 35:44 35 minutes, 44 seconds Okay. Okay. And ma'am so uh if I understand correctly uh so the same u uh 35:51 35 minutes, 51 seconds banks will be having u uh their clients coming here to these launches and we will be serving the uh these clients right is that correct? 36:02 36 minutes, 2 seconds Uh yes. Uh so it is not just going to be limited to the card uh holders only. Uh there would be walk-ins and there were 36:11 36 minutes, 11 seconds other uh programs as well. So yes it would be in the similar lines uh the way the bank program is at which we were already running it from past five years. 36:22 36 minutes, 22 seconds So if you actually see railways was also part of our uh lounge program. 36:27 36 minutes, 27 seconds Oh how how long you have been in the railway launches? 36:32 36 minutes, 32 seconds Uh so we were running this for almost uh five years now. Okay. 36:38 36 minutes, 38 seconds And uh it was a Chennai. 36:43 36 minutes, 43 seconds Uh no so there are total of 12 railway lounges where we had partnered but now 36:50 36 minutes, 50 seconds uh this company where we have done the acquisition they own and operate the lounges in three uh locations. So 36:59 36 minutes, 59 seconds Chennai is the one which is operational presently. Yes. 37:02 37 minutes, 2 seconds So does it mean now we have access to 15 lounges? Uh available we already have access to 15 uh 16 37:10 37 minutes, 10 seconds lounges. Uh now the three would be owned by us. 37:15 37 minutes, 15 seconds Right. Okay. Okay. And how many lounges are there in the uh global uh airport uh sector? 37:23 37 minutes, 23 seconds Uh so now we have around 900 plus touch points globally. 37:28 37 minutes, 28 seconds Oh okay. And what was our revenue in in Q2? What is the revenue percentage from the global airport sectors? 37:38 37 minutes, 38 seconds So in Q2 it was around 13%. 37:41 37 minutes, 41 seconds 13% and the remaining was uh uh more or less from the domestic lenders. Yes. Yes. 37:49 37 minutes, 49 seconds Okay. Thank you so much and wish you the very best. Thank you so much for the entire team. Thank you. 37:56 37 minutes, 56 seconds Thank you. Before we take the next question, a reminder to all the participants. You may press star and then one to ask a question. 38:06 38 minutes, 6 seconds Our next question comes from the line of Pipes from Mana Finance. Please go ahead. Hi, am I audible? 38:13 38 minutes, 13 seconds Yes sir, you're audible. 38:15 38 minutes, 15 seconds Okay. Uh where is this? Uh so you're going to open a uh new one in uh the Mumbai railway station. Which railway 38:23 38 minutes, 23 seconds stations are we looking at? We are looking at multiple uh railway stations of Mumbai. This is at Mumbai Central. 38:32 38 minutes, 32 seconds Mumbai Central. Okay. Okay. And uh uh uh going ahead, what guidance would you like to uh give uh to the shareholders? 38:42 38 minutes, 42 seconds Uh is most of the poison out of the system? Uh oh, sorry. Uh poison is the wrong word. Most of the pain is out of 38:50 38 minutes, 50 seconds the system or uh uh do you still see some pain going forward in the few quarters? 38:58 38 minutes, 58 seconds So I I I think it was already answered. 39:02 39 minutes, 2 seconds uh uh you know it was if you were to look at the results of Q2 the entire impact is not seen because as mentioned 39:10 39 minutes, 10 seconds by Lea the lang were operational for most of the quarter uh in the coming 39:17 39 minutes, 17 seconds quarter yes it will have the impact and the new businesses how much um 39:24 39 minutes, 24 seconds revenues do you see going forward as in not right now maybe in FI27 FI28 39:32 39 minutes, 32 seconds See, see I'll give you example of say a country like China or Russia where the ecosystem across the railways is really 39:41 39 minutes, 41 seconds developed. I mean you know China alone offers close to 600 700 lounges railway lounges that I'm talking about. 39:49 39 minutes, 49 seconds Similarly in a vast network I mean rail network of Russia again Russia also has 39:56 39 minutes, 56 seconds you know similar kind of lobby with the kind of focus that the prime minister is given to the infrastructure development 40:03 40 minutes, 3 seconds beautifification of the railways. We see a bright future and that is why we thought that it is the right time to enter into this market. While currently 40:12 40 minutes, 12 seconds it is only 14 12 to 14 lounges I think in the coming months with the uh push by 40:19 40 minutes, 19 seconds the government uh we feel that it is very very exciting space. It is going to be very very exciting uh uh pace uh 40:28 40 minutes, 28 seconds space and yes it will take time. I mean you know you also saw the lounge airport lounge also took so many years. So we 40:36 40 minutes, 36 seconds feel that you know it will be faster much much faster than what airport uh you know airport became airport lounge 40:43 40 minutes, 43 seconds became very very akin to uh you know every individual I think you know this will also become plus one day mar trains 40:51 40 minutes, 51 seconds infra overall infrastructure I think we are excited and that's why we invested in this company the entry barriers uh do you think uh 41:01 41 minutes, 1 second this uh will be presented to future competition uh and what will be a mode uh in terms of railway business. 41:12 41 minutes, 12 seconds Yeah. So what we are doing is what uh mentioned earlier now instead of doing the aggression uh the aggregation only 41:21 41 minutes, 21 seconds we're also getting into the services space which is why we have invested uh in a company like 41:29 41 minutes, 29 seconds right thank you so much guys all the very best. Thank you. Thank you. 41:37 41 minutes, 37 seconds Our next question comes from the line of Tanmoy, an investor. Please go ahead. Hello, I'm audible. 41:46 41 minutes, 46 seconds Yes, sir. You're able. Hello. 41:55 41 minutes, 55 seconds Yes, sir. You're audible. Please proceed with your question. 41:59 41 minutes, 59 seconds Hi. Uh, so hi. So u the first I wanted to mention to earlier participant that the 42:07 42 minutes, 7 seconds actual impact supposed to be in the next quarter. So assuming now this quarter we have 13% around uh from the intentional 42:14 42 minutes, 14 seconds launch business. So so basically out of 200 cr revenue which you have so uh so 30 26 26 crores could be you know a 42:24 42 minutes, 24 seconds revenue from the other stream. So is it safe to assume that by next uh quarter or few quarters these uh you know 160 or 42:34 42 minutes, 34 seconds 70 cr 70 uh four crores of revenue will be completely null. 42:41 42 minutes, 41 seconds See uh we do not want to answer that way but I'll tell you uh in terms of guidance that uh yes the India airport 42:50 42 minutes, 50 seconds lounge will have significant impact in the coming quarters till such time that we actually compensate or overcompensate 42:57 42 minutes, 57 seconds by the new business which is the global lounge business. So global business I think uh we have already given in terms 43:04 43 minutes, 4 seconds of the growth we have already doubled in the Q2 the revenue that used to come from global lounges versus Q1 has 43:12 43 minutes, 12 seconds already doubled we foresee that these will uh this revenue will multiply many folds in every single quarter and you 43:19 43 minutes, 19 seconds will hear from us so I do not want to really forecast in terms of you know how much that is going to be in terms of 43:26 43 minutes, 26 seconds absolute number but to answer your question Yes, the impact of India lounge is not fully seen in Q2. It will be seen in Q3 and maybe Q4 as well. 43:39 43 minutes, 39 seconds So when do you see like the revenue at least flattening not decreasing that's what I just trying to understand. I mean 43:46 43 minutes, 46 seconds we and understand that impact will be next two quarters but I mean next four quarters or five quarter maybe you have some internal this thing if you like to 43:54 43 minutes, 54 seconds share that's fine. um when you see flattening the curve 44:02 44 minutes, 2 seconds so see it is just the beginning right now in terms of the other services and uh you know the new tell what we are 44:10 44 minutes, 10 seconds starting business into right away so I would say it would take some time so it would uh you know it is too early for me to actually give you this guidance but 44:19 44 minutes, 19 seconds uh for sure uh in next uh quarter we will try and give you some guidance because we'll have some clarity But right now I think it's too early for me to give any clarity on this. 44:30 44 minutes, 30 seconds Sure. Sure ma'am. Absolutely understand. 44:32 44 minutes, 32 seconds That's that's fine. Uh so second one the thing is like now we're investing into know asset heavy uh you know model like 44:41 44 minutes, 41 seconds um uh railways. So uh our INDA's expenses also will go up eventually 44:48 44 minutes, 48 seconds right from next few quarters the moment you start accelerating on the railway launches because we are leaving more than three years. 44:59 44 minutes, 59 seconds Uh sorry can you please repeat your question? 45:01 45 minutes, 1 second So, so now we are we are investing into the trailway launches right you are like ass like we are leasing for more than 45:08 45 minutes, 8 seconds three years so preinda is also uh will go up right expenses yes so investment yes there will be the 45:17 45 minutes, 17 seconds investment that we will be making and uh but considering the uh uh the future of this uh business we foresee that uh we 45:26 45 minutes, 26 seconds will be able to get get the return of investment quite quickly from these No, that's fine. I'm not saying that and 45:33 45 minutes, 33 seconds you may get it. But the expenses as INDA the expenses also will go up, right? In terms of depreciation and then um interest. 45:44 45 minutes, 44 seconds Yeah. Yes, for sure. 45:46 45 minutes, 46 seconds Okay. Those things also will go up, right? Okay. Uh just following on last question that our employee expenses uh so what is the current iteration ratio? 46:00 46 minutes of addition will be okay there is no change in the normal number it is exactly like last year so there is 46:07 46 minutes, 7 seconds no special cause of accretion right now so there's no uh addition like it's only like maybe four or 5% max 46:16 46 minutes, 16 seconds okay so basically you're not anticipating like some uh employee expenses going up even if we uh you know 46:24 46 minutes, 24 seconds start accelerating on uh other businesses then they could launch Not too there could be some because yes there 46:33 46 minutes, 33 seconds could be some additional cost coming in because we are expanding into other services and also new geographies. So 46:41 46 minutes, 41 seconds it's not that you know I would say that uh eventually the cost employee cost will increase. 46:49 46 minutes, 49 seconds Okay. Okay. Thank you. Thank you. That's it from my side and all the best ma'am for your fight. Thank you. Thank you. Thank you. 46:57 46 minutes, 57 seconds Thank you. 46:59 46 minutes, 59 seconds We will take that as a last question for today. I now hand the conference over to Miss Liberata Kallet for closing comments. 47:15 47 minutes, 15 seconds Thank you all for joining our earnings conference call. We hope our queries have been answered. For any further queries or information, please contact 47:22 47 minutes, 22 seconds our investor relationship team. On behalf of the company, I thank you all once again for your time and participation. Do take care of yourself and goodbye. Thank you. 47:34 47 minutes, 34 seconds Thank you. On behalf of Dream Folk Services Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.