WSFx Global Pay Limited (511147) Earnings Call Transcript & Summary

Ladies and gentlemen, good evening, and welcome to the investors conference call of WSFx Global Pay Limited, formerly known as Wall Street Finance Limited. [Operator Instructions] Please note that this conference is being recorded. Material and information in this conference call is general background about the company's activities as of the date of this presentation. Information in this presentation should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities and does not take into account your particular investment objectives, financial situation or needs. This information is given in summary form and does not purport to be complete. I now hand the conference over to Mr. Srikrishna, CEO and Whole Time Director; and Ms. Pooja, Chief Financial Officer. Thank you, and over to you, sir.

Thank you. Good evening. This is Srikrishna here, along with Pooja, the company's CFO, and it's a pleasure to connect once again with our investors and present WSFx performance for the quarter and year ended March 31, 2024. As always, I'll start with a small presentation on the company, its performance and the various initiatives. We already uploaded the presentation on the company's website as well as the BSE website. Now we quickly get into the presentation. We start with a brief about the company. WSFx Global Pay is RBI authorized AD Category II. We are 30-plus-years old company. We are listed in BSE and we are ISO 27001 Certified company. From a product perspective, we deal in foreign currency, prepaid cards, outward remittances, catering to students, corporates, leisure travelers. We have a network of 19 branches and we have a 300-plus strong team. We do our business and partnerships with leading banks, banks like Yes Bank, Induslnd Bank, HDFC Bank, IDFC, RBL, Axis. They are also partnered with Thomas Cook for selling their cards. WSFx has also launched its own card 5 years back. It's called the WSFx Smart Currency Card, which is a co-branded card with Yes Bank. And this is something which has been one of the unique proposition of the card itself, a ForEx Card with the INR wallet. From a digital solutions perspective, the company has multiple platforms catering to every segment. So the company has a list of key customers. We deal with E&Y, Zoho, Reliance, Tech Mahindra, Accenture, Siemens, L&T, Titan, HDFC Credila. We deal further corporate requirements or partner with them for their customers. Now we quickly go to the next slide, where we talk of the digital platforms and solutions. Over the last -- a couple of few years, the company had a strategic vision of moving towards the digital. And we have built a lot of propositions for the B2B and B2C -- D2C space. So one of the first product we launched was our co-branded card, which has our own dedicated app, the WSFx Smart Currency Card. Along with this, we also have a corporate platform, which is a WSFx Smart Corporate Platform. In fact, around 35% to 40% of our business gets routed through the Smart Corporate Platform. We have a Smart Agent Platform for our agent partners. In fact, most of the agents that we are onboarding only through this platform. This is a very effective lead management and ordering -- order processing platform. We have also built a Global Pay FPaaS Platform, whereas we can give the solution to aggregators. This is a new platform which we have introduced. We are seeing keen interest for it. Finally, our D2C app, which we have been seeing quite a bit of traction in the last 6 months because of a fully digital process, via which you have brought into the D2C app in portal. Now we come to the Q4 and FY '23-'24 highlights and the results. Overall, Q4 was profitable, and we closed this year with a good result. So you can see this year is a transformational year for us. Maybe we can say a foundational year in terms of business growth and profit because we changed the business mix in the last 2, 3 years, and we have firmly come out of the pandemic impact. So you can say a foundational year where we have seen growth in all the segments. And also the digital platform adoption, and we were able to onboard the key customers. So from a gross turnover perspective for the quarter, we had INR 1,280 crores. Overall, for the year, our GTO was around INR 4,853 crores. Revenue from operations for Q4 was INR 18.13 crores, for the year, it was INR 70.04 crores. At a PBT level, we were INR 1 crore positive. For the year, we closed at INR 4.12 crores profit. so overall, it has been a very good year for us, where we can say -- strongly say that we are completely out of pandemic booking profits for the last 2 years. And for the last 7 quarters, we have been profitable. From a digital perspective, we have 30,000 app users. In fact, our digital base is slowly growing. Now we are focusing on our D2C solution because B2B, we have got some hold in the market. So one of the key updates, which I had already dwelt upon last year's presentation was related to regulatory. There is a draft framework we feel the AD2 scope is going to increase. There is an introduction of something called FXC ForEx correspondence, which is envisaged by Reserve Bank of India. Once that comes through, we feel that will be a strategic business model for us in terms of reach, in terms of having an FXC network, ForEx correspondent network, where our reach can go Pan India without us having direct physical infrastructure. So this opens up opportunities. Parallelly, in fact, [indiscernible] opening up of the trade remittance of INR 15 lakhs for AD2. That will also give us a scope for a new line of business, which is not there today. So we feel that over the next couple of months when this regulation is in place, there is a bigger opportunity for the company. So finally, we are happy to recommend a dividend of INR 1 per equity share. That's 10% of the face value of INR 10, subject to the approval of shareholders at the ensuring AGM. So quickly, we do a comparison of performance in the next slide, where we look at this quarter, Q4 versus Q4 of last year, you can see that from a revenue -- from operations of this quarter, we closed at INR 18 crores, whereas same quarter last year, we were at INR 12.69 crores. We showed a 43% growth and at the PBT level, we showed 106% growth, where we have closed INR 1 crore for this year. And last year same quarter, it was INR 48 lakhs. So if we compare Q4 versus Q3 of the same year, there also, you can see we have shown a 77% growth in PBT. On a year-on-year comparison of '23-'24 versus '22-'23, revenue from operations grew from INR 46 crores last year to INR 70 crores, PBT from INR 89 lakh moved to INR 4.12 crores, which is a 359% growth. So overall, the growth has been fantastic for the year. Next slide, you will see the last 8 quarters results. So you can see the trend that the company has been growing. Obviously, Q2 is always a big season for us and the spike in Q2 because of peak student season. But if you look at the last 7 quarters, we have been profitable, and this gives you a last 8 quarter strength. So the highlight will be that our G2 is growing, our revenues are growing and our PAT has grown. So overall, from a PBT level, you can see from INR 89 lakhs, we have moved to INR 4.12 crores. So we come to the next slide, where we talk about revenue and expenses comparative chart. So we have taken the base year when we became a stand-alone ForEx business. So our revenues for the last 8 quarters you can see has been growing. And obviously, Q2 is a peak season for us. So every Q2, you will see a spike. That is the seasonality in the business because we have a major concentration, we have majorly focused on student business. Selling and general expenses obviously has gone up because our business has grown, and we have also added more team members, so from 200-plus, we've moved to 300-plus, and we have also grown our business. So obviously, there is a corresponding selling, general and admin expense increase. Now we talk about the priority segments. So we are keenly focused on students, millennials and all of our primary businesses, university fee payments and living expenses. So that is an area where that spurs our outdoor remittance growth. And obviously, corporate and leisure plus our prepaid card growth. So if you look at it from the base here, we have consistently grown. And today, from the base here, you look at it, we are at 500% growth. In outward remittance, we are at 409% growth. We have grown substantially. Obviously, Q2 will always be a spike for us because that's high season. So the next slide is the financial results. As we can -- as we've already explained. We are profitable as of year ended, we are at PBT of INR 4.12 crores against previous year of INR 89.91 lakhs. So we go to the last slide of the presentation where we talk on the way forward. Obviously, we look forward to this year with a lot of optimism. The market dynamics is changing. There are regulatory changes happening. There are explosive growth opportunities, LRS is growing. There is this FXC model, which is going to come in. Trade remittance is an opportunity. So as a company, WSFx has multiple platforms. Today, we have a Smart Corporate Platform, Smart Agent Platform, Global Pay Portal and App. And we are also tied up with multiple banks overseas for providing student accounts, et cetera. So we are also looking at various tie-ups in the Neo Banking Financial Services. We are also working on our ForEx prepaid card direct issuance. So you can say we are geared up. We are in the right position to take advantage of the opportunities which the market provides. Keeping in mind that we need to be asset-light, scalable and efficient. We have built this digital proposition. And we feel that even for the FXC model, we have the technology available to quickly leverage this business model. So our commitment remains to create true value for our shareholders. And with this, I come to the end of my presentation. Thank you for all the support. Now I will hand the conference back to the moderator.

[Operator Instructions] The first question is from the line of [ Aniket Gadda from Investore ].

Thank you for the opportunity. First of all, I would like to congratulate Mr. Narasimhan Srikrishna and Ms. Pooja for the great results. My first question is the GTOs grew from -- for the year FY '23 from INR 2,960 crores to INR 2,853 crores, which is approximately 64% increase. What can we attribute this growth to? And the second question is for the next fiscal, are we looking for similar growth? And if you could give us forecast for the industry for the next year, FY '25?

So if you look at GTO growth, our gross turnover had moved to INR 4,853 crores, right? So here today, if you look at it, we had -- this year, we had closed at INR 4,853 crores against the previous year of nearly around INR 3,000 crores, correct? So essentially, as I said, see, last 3 years, we were stuck with the impact of the pandemic, and there was only one segment which was really working, which was the student segment. And we traveled 2.5 years through that. But subsequently, the growth has happened in all the segments. If you see the LRS data, last year approximately LRS figures would tell you that there was a $33 billion market. . Travel has really grown very large, maybe $15-plus billion. Student remittance is around $3.5 billion. And then if you see gift and family maintenance also has grown. So primarily, the company has always focused on student, corporate as a big thing. Corporate was totally outgoing COVID. Corporate travel has also picked up, albeit not the way leisure has picked up because corporate may, still people are now used to work from home or we are handling through VCs, but still corporate business has grown. Leisure has really grown. Students have seen a very consistent growth. So, the company strategically has been focusing on only these segments for the last several years, moving decisively away from currency operations, wholesale business, etc. So, obviously, we have some very strategic tie-ups also both in terms of corporates or our B2B partners, which has ensured that we grew in fact we have grown slightly higher than the market also. See as I said, this industry is not a very organized industry. There are only very few serious players in the market, so we definitely are optimistic about growth. As long as the market grows, the company is very optimistic about its growth. While I would not want to project numbers, I definitely -- when you look at it, overall leisure segment is growing, there is a strong demand for students wanting to travel overseas and also corporate business on year-on-year is slowly going back to pre-COVID levels. So, looking at the market overall and with India's propensity to travel also, I am quite optimistic about future market growth and along with it, the company’s growth.

So could you say that the industry could grow at a similar level to this year for next year, the industry?

LRS growth has been there for year-on-year. If you see LRS growth for the last few years, now it's $33 billion. So while we are -- and travel is just not -- travel is just growing. So we are optimistic that the growth will be there. Precisely at maybe -- I don't want to give a figure now because at the end of the day, the LRS data is RBI published data instead of me giving you a figure. You can always go to LRS data which is available in RBI website. Year-on-year, it has grown, and today it stands at around $33 billion.

Okay. Because first the RBI data was still -- the last I see was still, they published in January, I think. They have not published this quarter.

February itself, it has come. So, if you extrapolate, you will still look at -- by today or tomorrow, you will have marked that also. So, if you consolidate, it will be close to $32 billion.

And corporate would be primarily prepaid for FX cards, right?

Absolutely, corporate and leisure will be FX card. It will be students who will be predominantly student and then tour remittances. This is all be the remittance.

Also in regards to the industry, Ebix USA has filed for bankruptcy, has it affected our Indian FX industry because Ebix cash has a large presence in our country?

So essentially, as I said, Ebix is my competition. So I cannot say anything good or bad about them. The question is their parent company is in trouble. As of today, I have not seen any impact on the Indian operation. They are still my competition. From the market, I have not seen an impact as of now which has reached India. But over a period, what will happen and all, we are not aware of it because that's between that company. But India, where their operations go on, they operate through this Indian ready to license.

So are we not seeing some customers shifting to us? Or is there any such regard that we can see right now?

So essentially, if you look at it, customers are today shifting to Wall Street, not because that they don't want Ebix, or they don't want a Thomas Cook. We are pushing our customers to come to our digital proposition. So we are the only player who has got a proper corporate platform, which provides a complete automation for the corporate. On those merits surely, we pitch with all the corporates and all the larger corporate, we try to do some sort of workflow automation or get them into our corporate platform. So our focus has been not for the mass -- getting customers because our model is itself is a digital model. If you look at our network, we have only 19 branches. We have 300 people only. So, we are planning to use technology to grow, not have branch network and people’s network to grow. So obviously every company today is looking at a kind of a VCP, so every companies today have two vendors. And as of today, as I said, the market made there are not too many serious players available, and we stand the unique position. If an opportunity gets created like what you say we are very much poised to take advantage of it.

I was just a little late for the con call. I just wanted to ask if you could explain the regulatory update that RBI has done in layman terms and how does it affect us?

So, essentially quickly, I will tell you, 1750 FFMC's are there. RBI is not going to -- I think the idea is that FFMC's will not exist. After renewal, it won't be done. RBI will not renew them. They will be given an option to become AD category 2, or they should become FXC of an AD2 or a bank. So, essentially 1750 FFMC’s licenses will either have to get upgraded. For upgrade, a lot of conditions are there for becoming an AD2, it is not easy to get AD2 license. Either you update or you become a FXC and FXC is modeled similar to a banking correspondent. He has to be exclusive to the AD2 or banks which provide the FXC license to him, and we are responsible for all the actions of our FXC like similarly a banking correspondent. While it creates a lot of pressure on us to regulate our FXC, it also creates an opportunity for us to spread far and wide, and we in every nook and corner because we are strategically able to tie up with some large branch network FXC, FFMCs who become a FXC or some other industry where there is a good network, they can also become a FXC. Now, they don't have to take a license anymore. They can become a ForEx correspondent. This is still not passed yet, but we are expecting this to happen in the next 3 months. That is one part. FFMC is becoming FXC. So RBI will have only the handful 35 AD2 are something to regulate. We will have an opportunity to expand to FXC network and take our services far and wide. Point #2 is we have got a perpetual license now. Once this regulation comes in, we don't have to go for renewal for every year or three years or five years. It will be a perpetual license. Third is trade remittance, trade remittance up to INR 15 lakhs will be allowed to AD category 2. So, these are the three major changes besides minor things like currency increase and all those stuff.

So trade remittance, could you just talk a little bit because I have a little -- not much of an idea of trade remittance like who uses it and like INR 15 lakhs. So is it like a big update for us to get more business out of it?

So essentially today LRS market is $30 billion, trade remittance would be $800 billion right. Now, as a non-bank, this is the first time an AD category 2 is allowed to get into the trade remittance directly. So, today we are only looking at it as an opportunity. We need to figure out how we can leverage the opportunity. These are early days for me to really, but what I am saying is just like once upon a time, money changes were only doing cards and currencies, travelers checks and currencies and card and currencies. Now, after we became AD2, we got ability to do cross-border remittance under LRS which today if you look at WSFx business, remittance is -- it would create 3x of cards, so new area became much bigger than the old area. So tomorrow we don't know, one year, two years since this remittance, trade remittance is the category may overtake our current remittances also because that volumes are way larger. Obviously how we go about it, what we do about it are something we are working on and once the modalities come in we will have as official tie-up with the regulator, AD1 banks to put forth our solution to corporates. As always, all of our solutions have always been available with banks, be it currency, card, remittance, etc., where we try to do better is the way we handle our customers. Maybe the support which we provide, the pricing we provide through which we are competitive and get the business.

Because this is like 30x business or 3x -- 30x business of current LRS. So you are talking about $800 million in trade remittance, right?

In those market, we need to figure out where we can play because obviously, INR 15 lakh is not a large limit. So we will operate initially the overall market I talked about, but we will -- as we said, we will have an opportunity, which was till date never there. So how it pans out only over a period, we will be able to analyze and really scope it out. Once we launch the solution, after RBI givers the permission.

But like -- you just talked about the AD2 licenses, they are hard to get and currently if I check the RBI list of December '23, correct me if I am wrong, if there are 75 AD2 licenses given by RBI and how high is the entry barrier to get an AD2 license in India?

Today getting any license from RBI as the people have to undergo lot of scrutiny. This is not earlier times now lot of scrutiny is there when RBI issues a license obviously, there are network conditions et cetera, but overall, they check everything before they issue a license. So, AD2 license as a category with them increasing the scope definitely they will not give to any Tom, Dick and Harry, they will be scrutinizing looking at the credentials and only give the license and that is the reason. The purpose is not to give 1750 licenses without them subscribing to the stringent conditions of AD2.

Because most of them are FXC. And so predominantly, there will be very less peers who are just focusing on the FX market?

So essentially what happens is FFMC will no longer be under RBI's purview, once this regulation comes in after they don't renew the license, then it will be banks, AD2 and FXCs.

Okay. I will just ask a basic question, Srikrishna. I just want to know what are the precursors to growing the business in this industry if I want to look at a longer term perspective say for WSFx itself, so like 5 years down the line, how do you tend to grow this business?

So essentially, as I said, I don't want to -- what you call it too futuristic about things. We feel that we are in the right place. And as a regulated player, no, I cannot speculate. My boundaries are always based on RBI guidelines. So as I said, in the last slide, you must have seen, I said I am a regulated fintech. So my scope and boundaries will always be based on the permissions available. So within that boundary, whatever growth we will try to achieve. So, today I cannot say that the regulatory will do this, this, this and all. Today we have got trade remittance we are bullish about it while we are growing our existing business. Tomorrow, more opportunities are given we will be in the right position to leverage because we know this industry, we know this trade.

So I asked this question in the last con call, sir, but I just wanted you to give me an answer if possible in this call like how many agents have you onboarded in this quarter? If in percentage term and normal terms if possible?

As I said, any specific information, you have to write to us, we will give you because in a public forum, I don't discuss about numbers, percentages, et cetera, which are for my competitors are also will be listening to this. So I can really give you a global information. Any specific information, please write to the company secretary, if it is within our purview, we will update you.

And 750 to 1,000 FXCs, how much -- how many do we think we can get them as an agents for us?.

So that is -- as I said, now today, and we are not even starting. We don't want to speculate because we want the guidelines to come to, we feel it is an exciting model. Obviously our idea would be to onboard some quality than quantity. So we will try to use this as a model to gain coverage in areas where we don't have coverage and we will be very stringent on people whom we onboard, so the idea it involves WSFx. It will always be quality over quantity and compliance is very high for us. So WSFx will gradually only move with very stringent control because as a AD2 player, our liabilities are very high. If the FXC do something wrong, we will be liable, okay?

In the last quarter slide, Zoho and Reliance are not mentioned. Are there new customers that you on-boarded?

So last year, we on-boarded these clients.

Any new corporate clients that you on-boarded in this quarter that you would like to mention?

No, I think every quarter, we do an update. .You will know about it.

Okay. What kind of equity dilution are we looking for FY '25 in terms of ESOPs?

So as of today, we have a plan, already 2018 [indiscernible] As per the plan, the ESOP will be provided to the staff.

Like could you just give me a number for equity dilution, like how much...

What I have suggested if there are certain questions like technical questions, why don't you not drop a mail we will share it to you because there is someone else also waiting on the queue.

The next question is from the line of Imran from Quantum Investments.

Srikrishna, just a couple of housekeeping questions. Do we have any idea of what market share we command in the market or something?

So if you look at it, we are into multiple segments, right? So essentially, we are into corporate, we are into leisure, we are into remittance. And banks are also part of this. So if you see remittance is overall the purview of the banks [indiscernible]. So I technically have to remove the bank and say among AD2s, right? But overall, if you look at it, at the student segment, if you look at the student segment, I think we command quite a good market share nearly around 10% to 15% of the market share. But regarding the other sector, we are decent, maybe anywhere between 5%. But as I said, these are all things which are subjective because if you look at LRS itself, it tops of a $3.5 billion. But if you look at some of the parts of LRS or students going into living expense, it will be still higher only. But per se, we do command anywhere different segments may anywhere from 2% to up to 10% to 15% also in particular segments. But as I said, there are only 3, 4 big players in the market, and we are one among them.

Okay. Okay. There was no taxation liability in our accounts this year. Do we have a tax cover or how much more will be available?

Sorry?

This is no taxation charge in the...

Taxation what, sorry?

No tax liability provided.

Yes, because we have the carryforward taxes.

Okay. So how much will you have more cover available?

We have you can see the deferred tax figures there in the balance sheet and the current tax. So in total around INR 8 crores.

Another thing, there has been a large release of working capital this year. And you are sitting on a fixed deposit of some very huge amount?

Yes. So for fixed deposits against fixed deposit, we take the credit limit -- credit facility from the bank, which is required in this business. So that is how it works.

So, the FD is [ all ] for limit, Imran.

No but working capital release has been very good this...

Yes, yes, it is.

Because you have operating profit before working capital changes is about INR 6 crores, and then you have cash, INR 23 crores, so there was INR 17 crores. So has there been any specific debtor or something which you realized or is it -- or are these cash flows going to continue? We don't need to create more debtors to do more sales?

This cash flows will continue. It only depends on the season.

So, I will explain one thing, Imran. If you look at last year on 4 quarters our result was better. If you remember earlier also we used to have kind of a huge seasonality between Q1, Q2, Q3 and Q4, so while it is very nice to say student business is very good, student business is not year around. So, student business works very well with low working capital, but if you don't hedge and if you are looking at other businesses like corporate business et cetera, then we will only make profits during those season months and make losses during the other months. So one business does not need working capital, but another business does need working capital and if you look at leisure business, we need to keep currency inventory at the branches so that we can give currency. So it all depends on the business mix. Our idea is while we rely largely on students, we also will try to grow another two more segment which hedges against the seasonality and accordingly, the working capital utilization. So, obviously the moment you do more of corporate, you will have a little bit more working capital utilization.

Right. So this 43% growth in this quarter is an exceptional thing or we could see not 43%, but something much greater growth, which is happening in terms of travel and people wanting to go abroad and all kind of things. So is it something which is we are going on to a different trajectory? Or we would still see about 20%, 25% growth?

So from our perspective, we feel optimistic because market is growing. We are growing and the industry has limited players. We see a good growth trajectory. But I would not like to put a number on it because that will become speculative but we are optimistic that our growth will be good.

Right. And I calculate our revenue remaining about 1.44% or 1.41% of the gross turnover we do.

Yes, that is because now we are completely out of wholesale. There was a time in pre-COVID 30% of our business was wholesale during COVID we took a call that the company will not be in wholesale business. So, now overall we have got into this gross margin, and we are confident that it will remain there, obviously our business is B2B, a major portion of this will also go as agent commission also.

The next question is from the line of [ Aniket Gadda from Investore ].

Srikrishna, I just wanted to ask, do we still sell and distribute Thomas Cook travel cards?

Yes, we do.

So what's the difference between that card and our WSFx Smart Currency Card?

Sorry?

What's the difference between that card and our WSFx Smart Currency Card that we also sell?

Distributing HDFC card, Thomas Cook cards and Yes Bank’s card, so we are distributors of all the three card, but with the Yes bank card, it is a kind of a co-branded card arrangement where we have some control on the features et cetera, we have our own app which manages this card, whereas with HDFC and Thomas Cook, it is just a plain distributor arrangement.

Okay. So we are basically can I say commission agents?

You cannot say that as a commission agent because they don't -- it's not like FXC model. We can sell the card. So there are multiple lines of profit there. So we can say we are a distribution partner.

Okay. distribution partner. So just a balance sheet question, the outstanding debt is OD that we have been using has been down drastically? It will be the same because last con call you mentioned that you might require funds to grow our business, so what is going to happen? So, we are going to use more OD right now in the next year?

So essentially, if you really look at it, when we talked about looking for funds, we are not desperate for funds. We are looking for growth. In fact, we -- as we said, we are working in progress for our prepaid ForEx cards, et cetera. So while the company wants to grow, we are always looking at good funding options. So overall, when we grow our corporate business, we are looking at working capital, which anyway, which anyway we are trying to arrange through the banking limits. So obviously, the business grows, we may have some fund requirements, a portion of it for working capital. A portion of it for marketing expenses when we try to quickly grow our D2C business. Today, we are more predominantly a B2B in the corporate business. When we do D2C, we have to invest on more on technology and marketing. So these are all plans which the company has, which we'll try to gradually grow.

Okay. The follow-up, like the last disclosure of the CTO resigning, are we looking to get someone in?

Yes, yes. That is something which we always try to replace, maybe at the same level or a level below when we get the right candidate.

On the prepaid ForEx card, there's -- in India, there's a huge competition in that regard. So there's new cards that are very -- which have a very large presence say Axis bank cards, the IDFC cards. So how you are looking at the competition from our perspective?

So banks have been there throughout. Originally it was only banks and we were only distributors to it. As I said, FinTech money changers, AD2s, no financial services. NBFC should not exist as banks was efficient. Because there is a need the last mile connect is required, service is required, price competitiveness needs to be there that is why we exist. Like money changers were started nearly easily 100 years back subsequently when liberalization things moved in a different way. Earlier people had to stand in front of a bank to get $200, $300 today they get it like Swiggy and Zomato they get foreign exchange also at home or at office, so today what happens is the need for service, the need for competitive pricing has only spurred the momentum where today FinTech disrupt. So that is where from a money exchange perspective an AD2 plays a part while all the services of AD2 is available with the bank. The way we try to connect with the customer to the last mile makes us relevant and the way we try to innovatively tie up our offer or give our hand hold with the customers, is a big difference.

My question was in this regard will there be in future there might be like aggressive pricing, like the market discounts might be there in this prepaid FX business? So like how we are geared up for that? Because currently, like IDFC is not taking any markup on other transactions done by prepaid cards, even you's doing the same. So like how is like the competition so intense in this category? So how you're looking to like get the business? Only we are just looking at the corporate angle or we might go into retail or something like that?

Essentially, we are a responsible listed company. We don't go into price war only for valuation or try to do business at a loss. We have our loyal customers. We provide service and we have a philosophy that business should not be done at a loss. So while there are players who will try to do a lot of things, we are long term. We are systematic. We have a customer base. There are players who have even changed any 10 banks at the back end. We are not competing with any of them. We, as a listed company, as a responsible company, has a prudent pricing model. We are competitive and our market growth has also shown that the customer is consistently with us because customer is also not looking for only price, INR 0.05, INR 0.10 paisa they stick to reliability, service, trust, et cetera. So obviously, every business has this challenge, be it an IT or a consumer goods, et cetera. But you have to decide how you want to compete, where you want to compete, and which segments you want to compete. And our philosophy is very clear. That is why we have not gone into the D2C place in such an aggressive manner to burn cash and make a loss. We are more a B2B player as of now, and we will gradually move to D2C, not at the cost of selling below cost or 0 cost or et cetera.

Okay. Last 2 questions. How many of our 300 employees are in sales and marketing? Like how much of the team has...

That is what I say, is there any specific questions I will not be in a position to reveal because as I said, if you want any specific details or numbers details please drop a mail to us.

Okay. The last question. I just wanted to ask, what's the [indiscernible] we are giving the dividend right now because currently, we might be looking to get some and like providing those funds like INR 1.2 crores that you are distributing in dividend, they might be useful for the company to utilize for the growth purposes. So I just wanted to move the rationale behind declaring a dividend.

The management line got disconnected. Please stay connected until we connect the management line. The management has been connected.

Yes. Sorry.

Srikrishna, my last question was like the dividend that was declared, you just mentioned previously that you might be looking for funds for the next year to do the business. So I just wonder the rationale behind declaring the dividend where there's an outflow of INR 1.2 crores, which might help us to grow the business for next year.

Yes. So, essentially last dividend we declared 3 years back. Now we feel we have grown strongly. Last year we were profitable, this year we have booked better profits. We would also want to share that the company has grown. Consistently we are profitable and wanted to also in a way give back to the investors who have supported us that something share the growth and that is the reason and also share the confidence the company has on the business and also want the investors to have confidence in the company, so that is why it was discussed and decided that let us have a dividend this year and we always will strive to create value for the shareholders. The idea is as simple.

As there are no further questions, I would now like to hand the conference over to Mr. Srikrishna and Ms. Pooja Mishra, for closing comments. Please go ahead.

Thank you. Thank you, once again, I would like to thank everyone for joining us. And if you have any further queries, please visit our website or you can reach out to our company secretary. Thank you so much. I now request moderator to conclude the call. Thank you.

Thank you. On behalf of WSFx Global Pay Limited, we thank you for joining us, and you may now disconnect your lines. Thank you.