Dreamfolks:
Q2 FY24 Highlights:
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DreamFolks has delivered a strong revenue performance registering 65% growth YoY in Q2FY24 while on a QoQ basis revenue grew marginally by 6%.
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PAT increased by 1.39% @6.25% QoQ at Rs. 18Cr.
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The domestic passenger traffic, as reported by the DGCA, has witnessed a growth of 20% on YoY basis in H1FY24, while the Dreamfolks pax has increased by 47% in the same period.
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Above indicated growing demand for lounge service.
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The industry is also going through a structural change where card issuers are changing the program structure of the benefits to a spend-based structure.
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At Industry level optimization in benefits for non-premium cards may have short term impact leading to reduction in revenue. For the longer term the move to a spend based benefit mechanism will be beneficial for all stakeholders concern
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As travel industry is poised from growth DreamFolks is well positioned to capitalize on growth opportunities
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Revenue Mix is 76% Domestic Card holders and 24% International card holders.
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Having 40 Cr as Cash reserve.
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Partnership with top E-SIM provider for hassel free service to International customers.
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PAT avg at 9.38% for FY23 and now at the rate of
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ROE and ROCE is at > 60%
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Asset light company, and no capex is planned. Even if any capex is required it will be done through internal accruals and not through loans.
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Encouraging external tailwind in terms of increasing Air travel (@ 20% Quarterly increase )
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Margin prediction for future annual guidance is maintained at 11 to 13%.
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Avg Rev per passenger improved from Rs. 950 to Rs 990/-. With passenger base growing from 2.63 Million to 2.7 Million QoQ.
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Rs. 343 Cr is invested by company in overnight funds and FD. Completely secured based and not in equity.
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Any price increase on the lounge service is passed on to the card issuing banks. Power of pricing. Ensuring that margins are intact.
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Railway business is also gaining traction.
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1.76 Cr is the ESOP charges.
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Additional lounges are opening up in all metros and Hyderabad due to increase in demand.
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