Need to consider the fact that mgt commentary has been all over the place.
At the time of IPO, the commentary was gross margins are very stable and business will only compound.
Then the second quarter post listing, margins start to increase and mgt maintains it will be able to maintain these increased margins.
It was Mgt responsibility to point out seasonality in margins in earlier calls itself. Cant be that only in 1Q24 have they realised that there is timing difference as to when lounge operators raise their prices and Dreamfolk will take 2 quarters to pass it on.
The commentary in this call has broken the thesis that Lounge Operators will be price takers and hence Dreamfolks can continue to keep a higher share of the amount paid by Banks.
If there was one-time charges in a quarter, why were they not quantified in that very quarter itself.
Also, when Plaza Premium lounges in Hyderabad, Delhi and Bangalore were shut in November last year (for almost a month), which impacted a significant part of their business, mgt did not inform exchanges. Rather, it was vaguely pointed in earnings call that the quarter was impacted by lounge operator transition.
| Subscribe To Our Free Newsletter |
