Dreamfolks Services conducted conference call on 08 February 2024 to discuss the financial results and performance of the company for the quarter ended December 2024. Ms. Liberatha Kallat – Chairperson & Managing Director, Ms. Giya Diwaan – Chief Financial Officer, Mr. Balaji Srinivasan - Chief Technical Officer and Executive Director and Mr. Sandeep Sonawane – Chief Business Officer of the company addressed the call

Highlights of the Concall

• The Indian travel industry is one of the largest and fastest-growing industries in the country.

• In Q3FY24, the air passenger traffic in India grew by 9% YoY to 39 million passengers, as per DGCA data. For 9MFY23 passenger traffic saw a growth of 16%.

• The government has also intensified its efforts towards infrastructural development, and the key airports across the country are undergoing significant transformation projects to enhance the travel experience of passengers. The lounge industry also stands to benefit significantly from this growth in the travel industry.

• India's credit card penetration is as low as 5.5%. Credit card users in India has grown significantly over the past 2 years from over 7.5 crore credit cards in April 2022 to 8.6 crores in April 2023, recording a 15% growth and is expected to reach 10 crore cards by April 2024, growing by around 16% YoY

• The company currently holds a market share of around 90% in card-based domestic lounge access and provides complete lounge coverage across all Indian airports. Its proprietary technology empowers clients to tailor-service offerings for their end customers. With a global presence spanning more than 1,500 touch points across 100-plus countries, it has evolved beyond airport lounge access to offer additional value-added services such as railway lounges, meet and assist, golf games and lessons, airport transfers, visa services, car services, transit hotels.

• The company added two new services to its bouquet of offerings – Gifting and Health checkups. Customers can send flowers, cakes, planters and more to their friends and family and allow customers the convenience of availing pathology tests across India.

• The company has launched its exclusive membership program – The DreamFolks Club, which offers a range of membership packages, strategically designed to cater to diverse travel and lifestyle needs and aspirations. Services include complimentary global lounge access, airport services, beauty & grooming, healthcare, floral gifting, travel visa, golf and more.

• The company has strengthened its global presence through partnership with Grey Wall – Russia’s leading lounge operator. Passengers can gain lounge access to Grey Wall’s comprehensive ecosystem of lounges and services in 100+ key airports and railway stations in Russia.

• The company has added new clients to its existing roster of clients – an e-commerce company and a new-age fintech company diversifying its client base. This collaboration allows its new client to benefit from diverse range of lounge and non-lounge services

• The company has also expanded its presence in railway lounges by partnering with new railway lounges in Chennai and Old Delhi. It continue to maintain 100% coverage in railway lounges access across India as well.

• The company platform is now compliant with the payment card industry data security standard, which is PCI DSS version 4, signifying a substantial upgrade from the previous PCI DSS version, 3.2.

• The company currently does not anticipate significant capital expenditure requirements.

• The company reiterates the revenue guidance to more than 40% in FY24 while gross margin to be in the range of 11-13%.

• The company is envisaging air traffic growth to be in the range of 15%-16% CAGR for the next 4 to 5 years.