Here are my observations form the concall
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CAMs costs are not one off , these are continuous cost escalations which will happen every year, and DF wont be able to pass it on to their clients entirely, they lied in their presentation when they stated that the costs are “one off” , the lounges are squeezed by the airport owners , asking the lounges to share the revenue (not profits) and inturn the lounges are cutting the DFs margins
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Last year they got a one time consultation fees due to which their margins increased by 2.5 to 3% and this is a “one off” , which they didn’t disclose then , now they are caught with their pants down
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Did I hear 6 crores yearly ESOPS charges , where Operating profits are at 18 crores?
Their business is great no doubt but they are not truthful abt many things
As far as lounging in golf course is concerned, they wont get even 0.1% footfall of that of airport, very niche and very small
Railway lounges is a great channel, but with govt controlling them I don’t know if lounges could ever make any money atall.
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