Thank you, sir. We will now begin the question -and-answer session. Our first question comes from the line of Sparsh Bedmutha with Perpetual Capital Advisors.

Sir, my first question is regarding the unit economics on our railway lounge. I wanted to ask how much does it cost for us to open one and how long before it earns them back?

So in terms of the capex, if you're asking, then it depends from lounge to lounge, because every city has a different cost. Secondly, it also depends on the size of the lounges, because not every railway station, we actually get a same cost, I mean, same size. But however, on average, I would say that right now, starting from a 2,000 square feet lounge what we have, where we also have a 14,000 square feet lounges. So it depends from INR1.5 crores going up to maybe INR5 crores to INR6 crores is the capex investment right now. It is just the capex investment what I'm talking about. But apart from that, there are other investment, which is the security deposit and the initial advances, which are also being given to the railways.

Okay. Got it. And also, you mentioned that railway lounges could be a INR500 crores opportunity over 4, 5 years. Could you like walk me through what needs to happen for that number to be like how many stations and how many customers per station are we expecting?

So if you were to look at our Prime Minister speech, the kind of investment that they have envisaged, if that is happening over a period of next 3 to 4 years, I think we are confident and that is the number that we have actually calculated. And this INR500 crores in the next 5 years is very much possible considering that kind of investment.

Okay. Got it. And one last question. How do the margin economics of ETT compared to what you historically earned in the India lounge business? Are they like structurally better?

Yes. So almost we are in similar range.

So presently, actually, if you look at it, it is at a similar range. But however, as we mentioned to you that there are investment in terms of advances or we are also trying to ensure that because of the pricing -- price benefit, we are also giving them in advance amount to the lounge operators. So I would say that all that cost right now is considered. And I would say presently, you would not see a better margin compared to what it was earlier. But eventually, I would say that, yes, the margins would get better for Global.

The next question comes from the line of Maruti Nandan Sarda, an Individual Investor.

So I would say that by next year, we will actually come to the breakeven thing, okay? Now if you actually ask me that what the model would be, but the model is that we are focusing more on the global lounges right now, okay? The focus is on global lounges. The focus is on golf and also the other services which we have introduced. Now as we all know that any new services which actually get introduced in the market, it takes time for the awareness to be built up. So I would say now if you see one of the largest banks, which has actually introduced the other services. Now these servic es were introduced in the month -- mid of May. So initially, when it was launched, I would say that there was communication from the bank, but I think the communication from the bank is not on the regular front, but it is only a word of mouth which actually stress and it takes time. So I would say that this particular service itself will take at least a year to pick up and we start seeing numbers coming from there. Similarly, it would be for the other services as well. Now coming to Global lounges, now -- the impact of the war has actually impacted our business, and that's the reason (for) the Global lounge (business), the numbers have dropped drastically compared to what we see in the last quarter. Otherwise, I think we could have actually made -- I mean I would say that in terms of the transactions, the number and the top line would have been much better if there was no war. So I would say that these are the impacts which have happened. But yes, Glo bal lounge, golf, other services would be the one which will grow eventually in a couple of quarters. And by next year, I would say that, yes, we would be in the breakeven.

Okay. My second question is in respect of the employee costs. I believe that in the current quarter, we had ESOP expenses. So can you just give me the breakdown? And will it continue in the ensuing quarters as well?

So like when we talk about the ESOP cost, so frankly, its impact is very minimal. So if we talk about on a full year basis, the impact of those ESOPs which are issued is only INR14 lakhs. So that is not at all impacting. So if you see basically the variance that is appearing if you are comparing the current quarter number, so these will be more or less equivalent to what we have been doing in the previous quarter. So payroll cost, it almost stands there. In the last quarter, if you would have seen our commentary, then there was the reversal of the variable pay. So as a result, the number for March quarter was looking quite low.

Okay. So we can -- we will be continuing with the current quarter's number in the forthcoming quarters as well, right?

Right, yes, almost in the similar manner, yes.

Okay. And can you just throw some light on the debtors? Like we had quite a big chunk outstanding at the end of previous quarter. So right now, what is the situation? And do we have anything which is more than 90 days old?

So yes, there has been a lot of effort in terms of collecting dues from the receivables. So that's why you see the cash position of the company has quite improved. So that's what I said nearly

INR190-plus crores is there as compared to the previous numbers of nearly INR148 crores. So there has been a lot of work which is being done in that aspect, yes.

So what is the current debtors number at the end of June quarter?

So it's the balance sheet number. So we have just published only P&L number.

Not to forget that we are dealing with all the banks. So frankly speaking, over a period of time, whatever you've seen, the collection that is absolutely from these institutions, and we don't see any risk here. Just to -- I mean, answer your question if there is in your mind.

We have a follow -up question from the line of as Sparsh Bedmutha with Perpetual Capital Advisors.

So I had one more question regarding the Club 2.0. Like what's the paid membership count or average revenue per user? And how is the retention so far?

So yes, it's relatively new. I'll tell you why relatively new because while we launched it a few months back, the real effort in terms of broadcasting it and using social media has just started, point number one. In terms of average cost, I think if you were to look at it, we have 3, which is white, orange and black. So we are selling more of black, which is the high -end model where the cost is INR50,000 to the consumer. To answer your question, what would be the average? The average among all the 3 would be ballpark INR30,000 -- and we have just started. In fact, you will soon see the numbers getting published. We are significantly improving the numbers. So what we were doing versus what we have done even in the month of July or for that matter, June are significantly up. But yes, it's very miniscule as compared to the total revenue. But we will start publishing as and when we feel that it is significant impacting on the revenues.

The next question comes from the line of Maruti Nandan Sarda, an Individual Investor.

My question belongs to the promoter holding that since the share price is hovering around very low level, so does promoters have any plan of increasing their shareholding considering that in the next couple of years, they are looking at a very bright future for the company.

Presently, I think there is no such plans in the promoter group because presently, I think the focus is completely on how to bring the business back into where we were. So I think the focus is completely on that. And I think it is also important that once we grow the business and to actually have the right strategic investors with us. I would say that, that is where the focus is.

Okay. So are we looking for any strategic investors right now to invest in our company?

As I presently told you that right now, our focus is completely on building and getting back into action where we have started. And I think it is not the right time for me to actually meet up, but it is always better that first we perform and show and then it would be better for me to go and

meet the investors. So right now, I would say that the complete focus is on building the business and nothing on this.

Our next question comes from the line of Bala Murali Krishna, with Oman Investment Advisors. Please go ahead.

Just the opening remarks could you just clarify why there is a drop in revenue Q -o-Q. Is there any -- decrease in revenue from domestic side or any other specific reason is there.

As I told you that if you look at it, it is a drop in the Global lounge business. And the drop is drastically because of the war which is happening. So yes, internationally, the traffic is down, and that is one of the biggest reasons that why there is a drop in the revenue.

Okay. So any other further gains you finalized during this last quarter in this international in addition to the deals which we are running at even?

Sorry, your voice is not clear. Can you please repeat the question?

So internationally, have you gained any new customers in this last quarter, Q1 or similar to the Q4?

No. So we have gained customers, and I would say the clients in APAC. So we have a very large (card) network in Singapore, where we have already signed up and our program would be going live hopefully by end of this month or early next month. Our second one is in Indonesia, one of the largest bank in Indonesia. Also, we have also gone live there. There is also one of the bank in Singapore as well where we have signed and there is an integration right now with the bank going on. So yes, these are the 3 large clients which we have signed up for APAC.

Yes. That's great news. So on the Middle East, do we have any pipeline Dubai, Oman, Saudi, Qatar. These are -- some our competitors are very dominant seeing these countries. So do we have any pipeline or discussions with any other banks or coordinators or providers?

So as you are aware that we have acquired a Dubai-based company, which is ETT. Now because of the war, yes, the business is down in the Middle East. So that is one of the reasons that we are not able to move in the Middle East region right now.

Okay. Finally, on the EBITDA breakeven, I think we are planning by the H2 of FY '28. Do you stick to that or reduce the deals that are coming in line? So do you think that we can do that a little bit earlier also.

Presently, I would say that I would stick to what we have committed last time. If it happens earlier, for sure, we will also announce the same.

The next question comes from the line of K. Sahu with K. Investments.

I have 2 questions. First, on the cash part. What explains the cash appreciation in the books by around INR44 crores? Is it a better realization that we had from the previous services we had provided? Because last quarter in the March, we had a debt position of INR134 crores, I guess.

So has there been any significant realization from there? And second would be on -- actually, I saw that generally Q1 is a season where we have a better Q -on-Q growth, like most of the -- in the past 3, 4 years, I saw that against the Q4, you have a better Q1 on a Q -on-Q basis. What explains this particular drop of INR56 crores to INR39 crores in revenues this quarter?

Okay. So regarding your first question about the bank balances. So yes, as I explained earlier, there has been significant efforts in terms of collections. So you are right, there has been like collection of nearly INR40-plus crores, which is there from different customers.

Yes, sorry. And regarding your second question on drop versus Q4, yes, relatively, yes, Q1 has been better as compared to Q4. But I think Liberatha did explain that a significant portion of our business is global now. And India outbound to Middle East contributes significantly in terms of traffic, overall traffic, we all are aware of it. So that has dropped because of the war, and that has impacted the volume.

So Indian business is not there and the international business is impacted by Middle East -- Western Asia. Is it the case?

Yes. So in fact, our India business is, to an extent, compensating for the loss that is happening in Middle East.

If I'm allowed one more follow-up question. I see that there is a significant reduction in cost and the cost of services provided is approximately matching the revenue in this particular quarter. So will it be the run rate we will be going forward in Q2, Q 3? So even if we are not EBITDA positive, our cost of services would be matching our revenues at least?

Yes. See, cost of service is a derivative of revenue. So yes, there is a drop in revenue. And hence, of course, there is a drop in terms of cost. And if you are aware that our margins, gross margins are going to be what they are. So the cost line and the revenue line will be in line.

Yes. And as we explained this time, we have done like a few of the payments for MMG (Minimum Guarantee) . However, going forward, like there will be no such payment. So anyways, you will see positive margins.

As there are no further questions from the participants. I would now like to hand the conference over to Ms. Liberatha Kallat for closing comments.

Thank you all for joining our earnings conference call today. We hope your queries have been addressed. For any further information, please reach out to our Investor Relations team. On behalf of the entire Dreamfolks family, I want to express our gratitude for your continued trust and patience through what has been a year of meaningful transformation. We look forward to sharing our progress with you in the quarters ahead. Thank you. Take care, and goodbye.

Thank you. On behalf of Dreamfolks Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.