Dreamfolks services limited( DFS)

DREAMFOLKS Q4 FY23 Result Update:

• Market leader in the airport lounge aggregation industry in India. Asset light business model.
• We are seeing new air traffic records being created each passing day. In FY23, the number of domestic passengers traffic saw a major rise of 59.74% and stood at 136.03 Mn as against 85.15 Mn in the previous year. The number of passengers availing lounge access and other touchpoints to the company has grown at a healthy rate of approximately 131% year-on-year in FY ’23.
• With a view to expand our premium service offerings we deepened our association with Vidsur Golf, by acquiring a 60% stake in the company and look to capitalize on the growing interest in Golf in the country. This integration provides our customers access to 40+ golf courses in the country and 1,800+ globally.
• From a Global expansion point of view, we incorporated a wholly owned subsidiary in one of the most exciting travel markets – Singapore, with the objective of carrying out airport related services including lounge operations and access and running of loyalty programs.
• Industry Trends: Privatization & Premiumization, Infrastructure Development to build new airports, strong growth in air traffic, higher adoption of tech, higher propensity of air travel as compared to road and rail.
• For Card Issuers, providing lounge access to their Consumers at Airport is increasingly becoming a key aspect of their customer acquisition and loyalty program. Both credit card and debit card base are expected to increase.
• They aim to maintain their current ROE and ROCE when acquiring new businesses.
• The golf business is expected to have a 15% margin and has potential for growth in India and Southeast Asia.
• Dreamfolks focuses on building products in a way that maintains a margin of 15% when onboarding new clients or offering new services.
• Dreamfolks has seen month-on-month growth of 25% to 30% in their railway business, with 12 lounges across the country and plans to add more in the coming months.