if you intend to joint to the concall can you ask a bit about considering their asset light model and banks and credit card companies as customers, how do they carry so much receivables in their books? if you see one of their concalls they claim to have negative working capital i.e. they pay their creditors much after they realise from their debtors. In that case, in my view their accounts payable balance cannot be less than accounts receivable. Jeevan Patwa had asked this and didnt find they gave a proper answer.
Coming to this FY 23, the PAT is 73 cr and CFO is 49 Cr (i.e. 55% conversion of profits to cash). This is not a concern in a asset heavy business but considering their asset light business and dealings are mainly with banks etc. why the conversion is not happening here? The problem here seems to be mainly with regard to receivables, which if one sees opening receivable, it was 90 crores and has gone up to 202 crores. So out of Rs.773 crores of revenue, 202 crores (i.e. 26% stuck in receivables)?
Last thing about their billing structure and accounts payable. Who are the accounts payables? are they outside service providers relating to their tech platform etc. who support their business? or includes lounge operators etc. also? To put it simply, do they raise a bill on banks/cc companies for their services and get paid (this is easy, clean accounting and most likely the scenario) or it also includes lounge operators cost and they pass through the cost after taking their share of revenue (this is not likely the scenario).
considering its the first case, when do they raise invoice on banks/CC companies (i.e.billing cycle)? monthly/ quarterly? and so what is the average payment cycle after a bill goes to bank for payment?
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