WSFx Global Pay Limited ($511147)

Ladies and gentlemen, good day, and welcome to investors conference call of WSFx Global Pay 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 at 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 Narasimhan, CEO and Whole-Time Director; and Ms. Pooja Mishra, Chief Financial Officer. Thank you, and over to you, sir.

Thank you. Good evening, everyone. This is Srikrishna here along with Pooja. It's a pleasure to connect once again with our investors and present Global Pay's performance for the quarter and the year ended March 31, 2026. I would like to give a small presentation on the company's performance as on March 31, 2026, and the various initiatives. We've already uploaded the presentation on the company's website as well as the BSE website. Now we'll go to the presentation. So the first slide is all about a brief introduction. Global Pay is an RBI authorized AD Category 2 licensed player and the BSE-listed cross-border payments and ForEx fintech with over 40 years of operating legacy. Over the last few years, we have transformed from a traditional ForEx business into a digital-first omnichannel global payments platform. FY '26 has been a landmark year for us in terms of revenue growth, profitability, platform expansion and regulatory positioning. We go to the next slide. So what do we operate on? So here, I'm going to talk of what are all the 3 core products which we have, which is ForEx cards, cross-border remittances and currency exchange. So these are the 3 products which we have, which we provide for various customer segments. Our strength lies in combining compliance, trust and technology because we are a regulated player, it's very important that we have a strong compliance framework. And we have built trust and also technology, and that is what distinguishes Global Pay from other competitors. We have also got our ISO and PCI DSS certification. Today, we service around 900-plus corporates, 700-plus B2B partners and operate through a 21 branch network pan-India, along with our digital platforms where we -- so we can call ourselves as an omnichannel network. Our strategy is to build a scalable, asset-light and technology-led global payments ecosystem. That's what has been our constant objective over the years, and I think we are moving steadily on that direction. We go to the next slide. So here, we talk about the digital platforms. As I said, we are an omnichannel platform. One of our biggest -- this is one of our biggest differentiators. We have built separate digital rails for our B2B corporate and consumer businesses. For the B2B, we have the Smart Agent platform, which powers our consultants and partners. We also have an FPaaS solution, which can be embedded with our partners' digital ecosystem. We have a smart corporate platform, which enables workflow-driven ForEx management for enterprises. We have our consumer app and portal, which enables the leisure traveler to order foreign exchange from us, conduct remittances, personal remittances and also order sell and cash currencies. All of this runs on a unified payments stack, operating stack with a common compliance and the workflow infrastructure. So what is it since we have our own team. We have built an infrastructure where resources can be shared. Go to the next slide. Here, we talk about our vision. Our vision is to become a leading cross-border payment fintech built on trust, transparency and compliance. We are focused on simplifying global payments for Indian customers and businesses. The core value remains trust, innovation, operating excellence and customer centricity. Trust is a major factor when you come -- when you deal in foreign exchange because the high-value transactions. So it is very important that we build a system where we have trust, compliance and also operating efficiency. Go to the next slide. Here, we talk about our card stack and our remittance solutions. We now have multiple card variants. As you are aware, we launched our own card as a principal member of Visa, which is allowed in our AD2 license. We have multiple cards. We have a card for each of the segment. We have something called a switch card, which is a white plastic, which has a switch functionality between single currency to 30 multicurrencies. This is a product, which is a digital-only product, which is positioned for the leisure traveler. We also have a premium product called Xplorer Metal card, which is on invitation. Now we have started retailing it. This is a metal card, which again has some premium features and also supports 30 multiple currency wallets. Then our main product is our Global Pay card, which is the black card, which is available both in single currency variant and multicurrency variant. Single currency is a dollar-only card, which is 0 cross-currency and the multicurrency variant supports 30 currency wallets. So essentially, what we have done is we have moved from a 12 currency wallet to 30 currencies. So most of the major currencies where countries where Indians travel, we have covered their currencies, which brings an ultimate convenience to the traveler. So from an outward remittance framework, we do conduct all remittances under the LRS, excluding family maintenance and gift. But importantly, you must have seen the recent framework of RBI, which even allows us to do family maintenance and trade remittance. So the outward remittance potential goes up substantially for us. I'll be talking about it shortly. We go to the next slide, where we talk of a key product which we have launched last month, which is the Uni-Z ForEx card because now not only we are issuing ForEx card for travel, even we are using the ForEx card before travel for students for their application fees, visa fees, insurance and predeparture spends. So this is a digital-only product, and we are the first person to launch this product. We see a strong demand for this. So one thing which helps us here is we are able to capture the customer early in the life cycle and keep them engaged throughout. Our largest strategy is always to own the full student payout journey digitally, and this is a key step for that. Then we go to the next slide, which gives you an overview of Q4 performance. Obviously, everyone is aware that there is a macroeconomic changes, which are there, which is affecting our business. Q4 was impacted by macro volatility, especially March, we have the U.S., Israeli, Iran conflict, which had an impact in the leisure travel. Q4 was impacted by macro volatility, you can say. Despite that, we delivered 16% growth and 20% revenue growth because our focus has always been to increase our market share, and this has worked positively for us. Despite the downturn, we were able to do well. Revenue growth outpaced the volume growth due to improved product mix and yield management. So one of the things which we have been very clear about is to not do everything at a loss. We are very clear that business has to be done with some minimum margin, and that has helped us also. Digital contribution. See, besides that, it has always been one thing. Digital transformation is key for this company and digital contributions continue to improve materially. And despite all these things, even with U.S. degrowth last year, students driving to U.S. degrowth, we have shown a strong resilience in the students business despite the contractions. So that's something which I would like to talk about. So overall, you can say Q4 was decent considering the impact we had both in terms of students travel to U.S. going down and also the impact of war in the month of March, but still we were able to do -- get some good results. Go to the next slide. Now since we talk about the full year performance. So I think it has been a great year for us. We can say one of the strongest year operationally. Revenue crossed around INR 111 crores for the first time. Revenue grew 26%, significantly ahead of GTV growth, a good profitable mix. PAT grew 77%, which is also a great thing. We closed at INR 6.16 crores and with a PBT of INR 8.03 crores. So you can say that this year has been a very strong year for us. We remain debt-free with healthy return ratios. The card business and remittance business continues to compound strongly. So you can, in one sense, say FY '26 has been a pivotal year, both in terms of product launches and in terms of the strategic direction and also in terms of results. We'll go to the next slide. So here, what is important is we are talking of the recent RBI circular, which we can say is given a great tailwind for our business because as such, AD2 scope was defined very, very in a narrow manner where we could do only personal remittances under LRS, where, in fact, 1 or 2 categories was excluded for us. And we could do travel-related foreign exchange. But what I could say is, in fact, there's a great opportunity which has been created. FEMA 401/2026 RBI circular materially expands the addressable market for AD2 players. So you can say first time, we can participate in trade remittances. Obviously, the scope, everything is being charted. In fact, some clarifications are being asked. But what is happening is now we are going to get into trade remittances. That's going to be very big because it will be both inward and outward. We can do all non-trade-related transactions also -- non-trade-related current account transactions also, except gift and donations, which means now family maintenance, which is a $3 billion market is opening up to us. We are also looking at whether we can do inward remittances under this approval. Then one of the largest most important thing is that FXC, ForEx Correspondent scheme, or FCS, has come through, where we can appoint ForEx correspondents like banks can appoint banking correspondents. Now what this means for our business. Today, we operate on a very lean structure of 21 branches network, of course, with a few branches expanded every year. But now with this ForEx correspondent, FXC model, we can appoint FXCs throughout India. And obviously, we have to put the guardrails and control systems in place, and they can conduct foreign exchange business under our behalf. So you can say that this ForEx correspondent scheme opens scalable distribution opportunities. So maybe, as I said, these are early days, but over the next 12 to 15 months, you will see a kind of a network expansion through this model in a big way, and we will be able to reach customers much more effectively without having physical -- our own physical infrastructure. So this is a very, very, very important, you can say, relaxation which has come through. One other thing is RBI has also stopped issuance of fresh FFMC licenses, strengthening incumbents position. So if you see that the FFMC as a category, the license has been stopped. Only the existing license remain and over a period of time, they will upgrade, but no new licenses, which means that there is more opportunity for the AD2 players. And see, we believe, actually, this is a very, very structural re-rating opportunity for compliant AD2 players like Global Pay because we have not only the reputation, but also the digital infrastructure to support all these developments. Now we go to the next slide. This gives you performance trends. You can see that we have -- of course, Q3 is always strong for us because students business is very strong. But of course, Q4 we have done decently. When it comes to -- if you really look at it from year-on-year also, our growth has been pretty good. We continue to maintain disciplined growth across segments while improving operating efficiency. That is something which has been a key theme. So what I could say is that, obviously, every year, there are certain challenges which we face. But we have been very consistent with our numbers, and we continue to grow. Go to the next slide. This gives you the last 8 quarters trend. Again, as I say, the focus is on consistency across revenues, GTO and profitability. We are building a compounding business rather than one dependent on a single corridor or product. So obviously, initially, we started with student and corporate. We pivoted into card issuance. We have done well in the student segment. We have done well in the corporate segment with phenomenal year-on-year growth. Now we are focusing from last year on retail segment. And definitely, we will come out with very good numbers over the years on the retail segment also, the retail leisure segment, the digital segment. We go to the next slide. So if you really look at it, card business continues to be one of our key segments. There has been growth. But the last year, there has been a degrowth because simply put, there is the impact of students business. U.S. traffic has come down considerably, and that had impacted our card business. Obviously, there is also a challenge of international credit cards, which are also a competing product for us. When it comes to remittances, we have grown year-on-year, and the numbers are there visible for everyone. Our quarter 4 CAGR was 29.72%. Then next is from a business segment perspective, we operate on 3 major segments, which is the student segment, corporate segment and the retail segment. Combined addressable market now exceeds around USD 20 billion. Each segment has different consumer behavior, product mix and distribution strategy. Diversification across these segments reduce concentration risk. So we are focusing on the 3 key segments, which is there. Go to the next slide. Here, we talk of our student segment. This remains our largest growth drivers. In fact, we are happy to say we are increasing our market share year-on-year. While the business has -- overall market has contracted by 20%, LRS data is available for everyone. Our strength comes from our deep B2B partnerships and integrated product offerings. So our strategy has been predominantly B2B. We are tied up with leading education NBFCs. We are tied up with study consultants. And this has brought about the growth which we have. We are also -- on the next -- our next growth catalyst is our students payment platform. That is something which we are working on. In fact, that's also part of our FPaaS offering for our partners. We go to the next slide. Here, we talk about the corporate segment. So you can say this again has been something great segment for us. Obviously, post-COVID, the market share has not grown to the extent we would have hoped for, but we have 900-plus corporates. This has shown a phenomenal year-on-year growth. From '21, we have had a 95.62% CAGR growth. We have customers like Accenture, Siemens, EY, Zoho, Tech Mahindra, a lot of marquee customers who deal with us. Recently, we have signed up with Adani also. So our smart corporate platform has been one of the key platform -- differentiator between us and our competitors. And the digital adoption is going up, and we expect this to be a key differentiator between what we offer and what the market provides to the corporate customers. So we can say that corporate -- the platform has also made us scalable and asset-light because it's important. Otherwise, it becomes very people heavy. But what we have done is using the platform, we have made it very asset-light and scalable. We go to the next slide. Next slide, we talk of our retail segment. Retail segment is an evolving segment for us. It remains as the largest TAM opportunity for us because leisure is growing in a big way, but it's quite fragmented. So obviously, last 1 year, we built our brand. We rebranded ourselves as Global Pay. And we have started spending on marketing. We are doing performance marketing, et cetera. So you can see this is a very evolving opportunity. Here, we operate both on currencies, ForEx cards and personal remittances. We have a unique opportunity because we have an omnichannel network, not only through offering it through our digital platforms. We have our strong retail network, which is also providing us an advantage. Now with family maintenance coming in under the new guidelines, I feel this is going to be a big growth area for us. We go to the next slide. So here, we talk about the year-on-year revenues. Revenues have grown year-on-year, which is the graph can clearly indicate to you. So across revenue, across profitability, we have grown. We have been able to control our expenditure. If you really look at it, our expenses have been pretty much under control. Revenue CAGR materially exceeds our expense CAGR. The increasing digital mix and partner-led distribution is improving our operating leverage. So idea is to become asset-light and scalable. That is the most important and leverage technology wherever possible. And next, we -- this is the financial results, which is already there. So overall, financial performance reflects consistent execution across all segments. Strong revenue growth, profitability expansion and disciplined cost management remains key themes for us. So we go to the next slide, the way forward, what are all the strategic priorities which we have. So if you really look at it, B2C has been a strategic priority for us. Trade payments, which has come through, we have also been looking at the PA-CB license, but now we are evaluating whether we need to take the PA-CB license, but trade payments is a key priority. And with the AD2 scope expansion, definitely, this is going to be a big opportunity for us. FXC network. Again, this is going to be big because we now have a large distribution network. We are also trying to see how we can leverage group synergies where in the group, we have a large Spice Adhikari network of a few lakh Adhikari. So we are figuring out how we can leverage our group synergies also for the FXC distribution network. We are building a students platform. We are very strong on students. We have got some fantastic tie-ups with student consultants and NBFCs. We have now built a platform for students to remit fees seamlessly, and we will also be trying to tie up with overseas universities in this context. Along with this, what is important is that as a company, we have always been digital first. We have always been trying to push the digital transformation part in our organization, and we are happy to say nearly 60% of our transactions are either through automation or digital platform only. And this year, we are planning to take it up to 80%. From a prepaid card issuance perspective, that's a growth story. We have launched 3 products. We got our [ card act ] together last year. We launched the card. And now we can say we are stable. We have got 4 products, 3 plastics and 1 purely digital product. And I feel this year is going to be key for us because we are doing tokenization with Samsung Pay and Google Pay also. So we feel this is going to be a great year for our prepaid card business also. So essentially, the theme is always about being asset-light, scalable, efficient, building innovative products and payment stack to create long-term value for the shareholders. So one thing which we are happy to say that based on the strong result, we have recommended a 15% dividend, reflecting the confidence of the business and the commitment to the shareholder value. So we go to the kind of a last slide. So what is this? What -- so we have talked about so much. But what is important when we build all these things is good corporate governance. So as a listed entity, that's very important. And again, digital infrastructure, which I feel that we are one of the few companies which has really invested in digital infrastructure, customer centricity, which is very important, compliance along with technology. So these are the key building blocks, and we are happy to say that we have all these blocks in place, and we are trying to build the business with trust, transparency, innovation and compliance. So I can end this by saying that Global Pay today is transitioning from a ForEx company into a broader cross-border payments and distribution platform. We believe FEMA 2026 creates a large -- this new circular creates a large multiyear opportunity. With strong compliance, digital infrastructure and partner ecosystem already in place, we believe we are well positioned for the next phase of growth. With this, I come to the end of my presentation. I hand it over to the moderator. Thank you so much.

[Operator Instructions] The first question is from the line of Rahul Ahuja from Fin Wealth.

So I have 2 questions. First would be, how do you expect the new RBI circular to impact your ForEx and cross-border payments business in terms of volume, revenue and margins over like the next 1 or 2 years? And second question would be which business segments are likely to be more affected by the new regulations as in retail ForEx, outward remittance, education payments or et cetera?

The next question is from the line of Kapil Chopra from HNI Limited.

Can you hear me?

Yes.

Sir, my name is Kapil Chopra. I'm, I think, a very old shareholder for years. And I just wanted to learn basically how the margins would be impacted in this cutthroat competition, especially when the BookMyForex and a lot of other small players are very proactive in their marketing and in their services and the prices are also less. And you have said in your opening -- in the closing remarks that trust and transparency along with the compliance are the key things. But this is a very general term. I mean what extra you are doing to make it to the next phase of growth? I am not able to learn the same that every next guy who is into this particular segment or this thing for the -- and you said you are making a student community and you are doing something with the education partners or the consultants. But I have not seen that thing on the stage. So how the story will convert into the numbers over a long period of time or even in the short term, if you can explain that in detail or we can do an extra call. And I wanted to give you one more feedback. Recently, I wanted to send one of my kids to abroad for education in the Europe. And I called your this thing in Delhi, I saw your website just to compare the price and this thing. But I called the number and some Mr. Mahesh Sharma picked up. And my file was -- despite sending the papers to you, my file was with them for around 3 days. If this kind of proactiveness is there from your team or from your sales guy, how you will achieve such a higher number despite having more and more branches? It's better to have less branches, but with a more good and proactive customer care in the sales department. That is my suggestion to you. Because even if we speak to the head of that particular unit in the education, nobody responds. You must take this thing seriously. Otherwise, despite opening new branches, if the people are not so proactive, the numbers won't come. The customer feedback is so bad. Even if we call BookMyForex and 2 other dealers in the same region in Barakhamba Road where your office is, they chase you rather than you keep on calling. I wanted to do a deal with you, but nothing positive happened because I'm -- it's like a home. If I'm a shareholder, the revenue will go to my home only. So you must take it seriously if you really want to grow and improve your customer service and the proactiveness in the sales also because the -- in this foreign currency, the Indian currency depreciating very fast and the dynamics are very fast. So if you're not proactive, there is no great business for you. That is my this thing. And about the digital transformation, how you are different from the others, if you can explain that or if you can give some demonstration or your person can give us the demonstration, that would be really great. Or if there is any link on the YouTube or this things where we can learn how from the end user point of view, it is better than other people. Just that, sir.

The next question is from the line of Aniket Gadda, an individual investor.

Am I audible?

Yes.

Yes. So I have a few questions. Firstly, could you just provide me a detailed breakup of the segmental revenue for the current FY '26, maybe include transaction volume growth, customer additions and contribution from these products? My second question is, there's a meaningful increase in the brokerage and commissions given to the agents. So are we getting more revenue from them as compared to a branch network? Thirdly, could you just provide your customer acquisition and transaction growth, like what's the proportion in like marketing spend, [indiscernible], repeat users, like how -- from where you're getting your revenue from? And there are lots of questions. So can I just keep on asking or it will be like question and answer?

No, you can ask the questions because we need everyone to ask the questions. Later, I will answer it. And beyond that, if there is something, you can write to the company also and provide you the answers.

Okay. Then what's customer acquisition strategy right now? Like what kind of strategy we are adopting to acquire new customers and also to retain customers? Then you have launched a lot of ForEx cards in the last 6 months. Like how are they performing? Any trends you are seeing there? Like could you just provide some active user metrics or average revenue per customer and also like what are your targets for FY '27 on number of issuance cards, active cards, revenue per customer and total contribution to the total revenue from the card business. Lastly, are you seeing any cross-selling opportunities in this, like remittance services, travel services or offerings in card business, any cross-selling between them? On the quarterly performance and outlook, like this quarter 1 FY '27, 2/3 have already gone by. Could you just share your qualitative commentary on like how the business is going on? What's the trend right now? And what's your outlook for FY '27? And what kind of key operational or financial milestones are you targeting for FY '27? A person has already asked the regulatory changes. Could you just provide a brief feedback on like how -- like the TCS has gone down to 2% for education-related expenses? Like how -- and it's positive for the industry, but how does it impact the ForEx cards, student remittance volumes and overall customer acquisition for us? And what's kind of the customer response and traction you are seeing from these regulatory changes? Lastly, you said with the 401 FEMA, we are currently looking for trade payments and also scaling up our distribution network to FXCs. So are we leveraging the promoter company distribution network? And what kind of distribution network are we going to see in the next 12 to 18 months? Lastly, on the financials, there's been a notable increase in payables. What would be the primary reasons for it? And what's the company's receivable and settlement policy? And what kind of working capital trends should the investors look forward to? One more, just last question. On the previous con call, you had mentioned in the retail segment where we are going to partner with [indiscernible] to expand our network there. So could you just provide any partnerships that we have added and any deals that we -- any partnerships that we are looking forward in the future?

The next question is from the line of Nitin Gandhi from Innoquest.

How do we benchmark with Scapia, a bank-sponsored company entity offering the similar services? That's the first question. And the second is more of a feedback and suggestion. I think you have a ready base. Most of the shareholders of this company will be surely traveling. And I don't think at least I have been approached any time. I mean, it's a captive database, which you need to explore first. Maybe you can take it as a shareholder return. But I think it's the best way to start and make the feed, which they are going to be the horse's mouth to spread faster.

[Operator Instructions]

Can we start the answers? Just a minute, I'll just compile the questions. So first question from Rahul, right, who asked about this RBI circular and what is the impact on volumes and margins. What I would like to say is that RBI circular opens up opportunity. In fact, obviously, the industry may -- overall, the opportunity has grown up. So whenever an opportunity becomes higher, it's always prone to more competition coming in, more players looking at this business. Earlier, AD2 business was not looked up by everyone, but this is a kind of a boost to this entire licensing. So obviously, competition will come in. And with competition, always, there will be a pressure on the margin. But what we have to look at is we are existing -- we are leading in some of the segments. The new segments are growth opportunities. So obviously, today, we are having a margin of 0.6% to 0.8%, if you see as a net margin. In a trade remittance, it will maybe go down considerably, maybe we're looking at 20, 30 bps is the margins which we are looking at the trade remittances. But overall itself, as I said, each segment has its own revenue mix. So essentially, when we look at the corporate segment, the margins are different. Retail, it's different. Students is different. And when it comes to trade remittance, obviously, the margins will be based on the competitive dynamics. So I feel while we should not look at margins, we should see what is the TAM. Today, maybe the TAM is around $20 billion. Tomorrow, the TAM will be $200 billion. So the volume or the gross turnover will go up. And obviously, there will be a marginal impact on margins because of the business mix. Tomorrow, trade remittance becomes a major portion of our business. Obviously, the overall net revenue will come up. But because of the growth in volume, we will end up being more profitable, right? So as far as I am concerned, from the circular per se, we have no impact because we have per se, our scope has expanded. Our scope has expanded to include trade remittances and new categories in non-trade-related transactions. So my view is that our scope has only expanded, and there is no negative impact. Of course, future impact of competition, which is always there in any business, which happens. So next, we come to Kapil's question. We are talking of how the margin would be impacted because of cutthroat competition. Obviously, that has been one of the reasons. See, there has been -- so essentially, we are a 40-year-old player. We came from MTSS background back to retail ForEx, and our focus primarily had been on 2 key segments. We had not identified leisure segment as a key growth segment for -- till last year. We identified student and corporate as the key segments and student being a key B2B market. Corporate is again a direct acquisition model. We have not been big time into retail, mainly because of 2 factors. One is obviously the competitive positioning where profitability was not a key parameter. Many of the companies which have gone into the retail space has been more into a burn model than into a value creation model, saying that they will create value subsequently. So we have not gone into that model to start with. Over the last couple of years, the card volumes have gone up in leisure segment. And now with the growing base, obviously, this is of interest, but we are having a calibrated approach. When I said trust, transparency, compliance, convenience, we are not talking of this as only one thing. We are saying, look, we are consistent. Maybe -- our pricing may not be as competitive, but we will be very competitive pricing, but not at the cost of taking a loss on every transaction. And that has been our approach always from day 1 that there will be a minimum margin. So we will not try to do it at 0 just for the sake of doing turnover. And that is where leisure has been something which we have been focusing on a very, very, very systematic manner. We also have a competitive positioning of a flat pricing for our switch card. If you have gone to our website, you would find that all the currencies are available at interbank rates, but we have a small fee associated with the fulfillment of the card. So that is our position that we will not work at a loss. There will be a transparent minimum margin in which is required to run the business, and that has been our question. Obviously, the competition sometimes works at a loss, but we are not there to compete there. We have already a strong B2B base. And gradually, we build the customer trust, and we have customers who come from our B2B base who do take foreign exchange from us. But when we get foray into the D2C space also, we don't want to just follow the strategy of our competitors and won. So if you have seen the P&L of some of the competitors, you will understand what I talk about. So essentially, that's what I told when I talk of trust, trust is very important because tomorrow, if you want to come -- see, today, we have built a name for ourselves and we are -- last 1 year, say, we have built our brand also. When you want to go to an app and want to do a transaction of INR 10 lakhs or INR 15 lakhs, when you go to Amazon, you will do a transaction of INR 2,000, INR 5,000, worst case a cell phone of INR 1 lakh. But when you want to go and do a transaction, which is a few lakhs of rupees, trust is very important. That is where being a regulated player matters. That is what being there in the system for a longer time matters. And that's where we always lay great stress on trust because when we scale up, when we go digital, when people don't see you, still they have to trust you to do high-value transaction. That's why we always talk of trust as a key factor. Trust, transparency. But if you are really looking at what we are doing, we are the only player who have got a digital ecosystem -- digital platform for each of the segments. No competition of mine has got a digital solution for each of the system. Over the last -- if I subtract 2 years of COVID, for the last 5 years, we have grown year-on-year. Our numbers have improved. And we have also launched a card program. We are one of the first few people to have launched the card program. Rest are still planning to launch or launching it now only. So to that extent, each year, there has been some sort of a consistency and innovation which we have displayed and which are going to become the building blocks for our future. So as regards to that bad experience in Delhi branch, I'm very sorry about it. We will take corrective actions that's unacceptable to us. So obviously, we will look into it and come back to you, and we assure you that such things will not happen. But anyway, as I said, I will look into it and come back to you on a separate line. From a digital transformation perspective, see, what we have done is, if you see our cost has not gone proportional to expenses. We are one of the smallest in network among AD2. We have not really gone on a branch expansion. In fact, when I took over the company, we had 35 branches. In COVID, we went to 16 branches, but we grew our GTO. That would not have happened if branch expansion was the only strategy of growth. We have consciously only opened branches where it is required from a logistics perspective. And over a period in the last 2, 3 years only, if you see, RBI has come back with a lot of regulations, which is allowing us to do everything digitally. Earlier, there was a lot of requirement for wet signature, et cetera. But still, as a network, we are one of the leanest network in the market. In fact, if you go to the other AD2 players, you will understand they are more network heavy. And we are uniquely poised for taking advantage of the FXC network. So that is as far as digital is concerned. And obviously, we are the first people to now get into this switch card, launched 30 currencies. We are also trying to work on multiple payment rails for remittances where remittances can be done on holidays and it can be done at a much faster manner. These are all some things which we are working on so that we can bring technology into cross-border remittances also to make it cheaper and faster for our customers. Now we go to Aniket. In fact, Aniket asked about transaction volumes. I can only give you a broad-based structure. Later, anything specific you can write to the company, whichever is available in the public domain, whichever we can share, we can share with you. But if you really look at it broad-based, I can talk of a few things. One is predominantly, our blueprint has been -- we have been a B2B company. We have been a B2B2C company. So we have not been a D2C company. And that is something which is very clear in our strategy is that we have been more leaning towards the direct corporate business and the B2B business. We have now only started foraying into the D2C space, which is relatively new to us. And we are a little conservative when it comes to burning cash because we feel that it has to be calibrated. We have to take care of shareholder value. So if you see looking at it, broad-based, we are a B2B company. 80% of our business -- 80%, 85% of our business comes from B2B and corporate business. D2C is a small portion of our business only and which is going to change over the next couple of years. So naturally, being a B2B company, the partner revenue is higher. Obviously, there is a commission which the agent also referral fee, the agent fee earns. Repeated usage is also, as I said, in the B2B, many times, repeat usage is also governed by the B2B channel. We also have our marketing automation, which ensures that we do follow the customer wherever possible without disturbing our partner because there are certain boundaries in which we have to operate when we do a B2B partnership. So from a customer acquisition strategy, when you ask for a customer acquisition strategy, today, it is more about direct marketing. Obviously, the D2C, it's all about digital marketing. But when it comes to the traditional mode, it is more about having a sales team in place. So most of the branches, we have a sales team, which goes and ties up with institution, be it a corporate or be it a B2B partner, be it a bank, be it a hotel. We have a sales team, which, in fact, goes in that does the tie-up. Each we have a proper structure, regional structure, sales team, sales performance, everything, which is the main strategy from a partnership onboarding or a corporate onboarding. As far as D2C is concerned, we do local campaigns. We try to cross-sell. One of our key areas, which is where we get the leisure business is cross-selling to our existing customers, like a student's father or mother will want to go overseas. Our corporate business guys, they travel on leisure. These are all the areas we focus on, which becomes a revenue source for us. Because today, the CAC to do a digital acquisition is very high. In fact, the lifetime value, the lifetime value for, what you call it, retail customer is -- if you really look at a retail customer, he takes around roughly $1,000 to $1,500. Even if you have a 1% margin, the average income you can earn from a retail customer if he travels once a year only is maybe less than INR 1,000. So obviously, CAC is important when we acquire a customer. There are people who are trying to do a lot of things, but actually, it's negative. Your CAC to your revenue is actually negative there. That's why we are taking a calibrated approach. We keep a small margin, which is very clear. And customers also we are very transparent on our pricing because there is a value creation and there is also a cost involved for the value creation. So when it comes to targets, obviously, I cannot give you specific numbers. We are always aggressive. We want to do better than last year's performance. So obviously, we are always trying to create value. So even though last year, as you understand, we had a 20% contraction in market, we achieved a year-on-year growth. This year also, there is a contraction. From March, there has been a contraction. I can say 25% contraction has been there 25 March, April, May, and we expect next 1 or 2 months to be a little challenging. But then again, as I said, leisure is not my key growth driver. My growth driver is more student and corporate. But that also has got affected because of the war -- on the things on the war front. But what you should look at is today, maybe the next 3 months or 4 months is where we are going to talk of AD2 from a traditional travel perspective. Maybe by the time we hit to the second quarter end, we are going to talk more from a trade angle, family maintenance angle, so because the scope has enhanced and also in our ability to reach the customer. So what we feel is we have got the infrastructure, we have got the capabilities. So we have the -- now the channel of distribution capabilities also through FXC, which will ensure that we move forward in a big manner and take advantage of the newer opportunities come in when one door shuts. So if I give you a simple analogy, 2 years back, Canada was a big business for us. Canada went down, but we grew. Last year, U.S. was a big business. In fact, Canada and U.S. are one of the biggest business when it comes to student corridor. Last year, U.S. went down. Still, we grew because we gained the market share. This year, in the beginning, obviously, there's a headwind because of the war. But then again, the tailwinds are there because of the opportunities created by the regulator. So definitely, a smart company has to understand that events will not remain constant. It's your ability to look at newer opportunities when old opportunities shut down makes you -- defines where you go. So we are very confident that the new opportunity created is what is going to drive the business, while we understand that there are pressures in the existing opportunities which are there, but this is how it has been over the last several years. In fact, the COVID also came, we survived COVID also. So coming back, -- so obviously -- I wanted to take the next question. So there was also a question about cross-sell opportunities. So we are building a cross-sell stack, both for our retail. So we are trying to build in a lot of transit products, insurance, SIM cards, much more are being worked out. There is a team which is working on building a complete stack of products, which will be pushed to our consumer and B2B platforms. From an -- already, there is a lot of cross-sell opportunities between remittance and cards. Every student who does a remittance is a card opportunity for us, which we track very, very closely. So as I said, our business, considering our present mix of Global Pay, it is always Q2, Q3, Q4 are peak months for us. Q1 is a leaner month because, obviously, we have never been a large leisure player. So obviously, we expect this year also to follow the same trend of last year, but next year may be very different because the business mix changes completely. So from a TCS perspective, in fact, you had asked me about TCS perspective, that's a big relief for all of us because obviously, there is a -- so that was impacting more the own fund student, not the loan fund student. But obviously, today, we have seen one noticeable trend that the loan fund student is growing bigger and bigger. Obviously, there is -- the own funds -- student who uses the own funds is actually contracting because what we learned is over a period that, in fact, we are quite surprised when we saw the strong business we are getting from our B2B network, then we understood that maybe there was -- when you take a loan -- someone told me, we are trying to validate it that when you take a loan, it looks like you have a better -- you're showing the proof of funds, et cetera, in a better way and your probability of getting a visa becomes easier is what someone commented. But we are not complaining because we are very strong in the B2B network. But overall, 2% TCS has been a great thing for us. So we feel that 2% for student segment, we feel that maybe if it becomes 0 also it's better because it's a priority sector for us. From -- obviously, I've covered you the FEMA regulation. Trade payments are -- we are excited about trade payments. And definitely, 12 to 18 months, we are looking at it as one of the key growth factors for us. When you ask me about leveraging the promoter network, obviously, Spice Money network is of keen interest to us after the FXC opportunity, but it is -- our expansion strategy is not only for the Spice network. It is for wherever we have quality shop or anything, we will look at it because it's more about reach. It's not about only leveraging one network alone. It is about we will be picking up what you call it -- we will pick up the partners very, very carefully where there can be an opportunity because everyone just having a network doesn't mean that there is a ForEx opportunity. We will identify places and then leverage the network accordingly. And our expansion is not only for our own group company's network. It will be much more universal. We will try to partner with multiple players, maybe NBFCs, maybe retail chains, et cetera. As I said, this is a strategy which is evolving, and we should be able to come back to you with much finer details maybe in the next call, which we have with you. As far as there are any numbers, I just would like to now give it to Pooja for her to answer. Pooja?

Yes. Thank you. There was one question on working capital, so I will answer that one. So basically, working capital has grown in line with the business scale. There is a healthy expansion, which has happened. The increase in current assets and liabilities is largely driven by the scaling of our card program, where customer wallet balances sit on both the sides of the balance sheet simultaneously. More importantly, our capital turnover improved from INR 3.8 to INR 4.4, meaning we are generating more revenue per rupee of working capital deployed. The short-term borrowings, which are showing in the balance sheet are entirely working capital facilities, which are backed by fixed deposits, and they are not structural debts. The working capital trends, so it reflects a growing business. That's all. There was one more question, I think, from Nitin on Scapia. Krishna, sir?

How do we benchmark with Scapia, right?

Yes, yes, yes.

Yes. So that's a very important question. As I told you, one of the key challenges for us we have is credit cards, international credit cards. They have an arbitrage over ForEx cards. But you must have understood in the last 3 months, taking an INR card would have been detrimental because rupee had weakened. Rupee had weakened by more than 3%. So what has happened is rupee credit cards have been, in a way, positioned as a travel product, which is very unfair to ForEx cards because ForEx cards may we have a lot of requirements like travel requirement, details, visa, ticket, et cetera, whereas the credit card is just issued. And that -- and then positioned as a ForEx card with fintechs, which gives 0 cross currency, and a lot of freebies, which in the short term is very good for the customer. In the long term, the company is not exactly making any money in all these things, but we are impacted by it. In fact, I cannot give you exact numbers, but roughly 60% of international spends have moved to credit cards because of that. All these things from a leisure side, the impact has been great. And one biggest opportunity which they leverage is there is -- it doesn't come under LRS. Credit card spend does not come under LRS. So TCS is not applicable, whereas ForEx cards and debit cards come under LRS with the TCS applicability after INR 10 lakhs. So most probably high-value spends will also go to credit cards because it doesn't have a TCS impact. It doesn't have much of a regulation in terms of whether any checking is happening in terms of whether you're traveling or not. So obviously, it's a big challenge for us. And with companies like Scapia using it as a -- to get in by providing 0 cross-currency and lounge access, et cetera, has been a challenge in the short term. We have, in fact, the association has represented to Reserve Bank of India on the harmonization of these instruments because we are categorized as a ForEx instrument and there are a lot of regulatory things surrounding it, TCS, LRS, et cetera, whereas credit card is not there, we have represented there. But there is no head-on strategy as of now because there is definitely an arbitrage opportunity, which is happening there, which is not exactly profitable opportunity for the company, which is issuing it. So we have represented to -- and of course, there's a credit component there. What we have tried to do is that we are also looking at trying to add some loan component to our business where we tie up with NBFCs and try to see how we can provide cross-sell of our loan to our travelers. That's something which we are working on. But if you ask me straight, today, credit card has some advantage because of this regulatory arbitrage, which is available, which is actively being pursued by us and the association with the regulator to bring in parity, which will ensure that we remain competitive because ours is a different product. Apple-to-apple comparison is not possible. There are certain merits of a ForEx card. So if you really look at it, now we have got 30 currencies. You know what is the rate. You know what you load. You are not exposed. If you're going on a 15-day trip, you suddenly do not have to pay more. They've already taken $5,000. The $5,000 comes at INR 95. In a credit card, the $5,000 will change every day. It will become -- INR, say, conversion will move from INR 95 to INR 97. So this is where the advantage is. But as I said, there are some advantages there, which we are representing in a big way to ensure there is a harmonization of the product. So obviously, you are right. You cannot compete literally, but you have to compete in your way because there are people -- 2 of my key segments do not want credit card. The corporate does not take credit card, the student does not take credit card. He wants a ForEx card. Only the leisure segment is big time impacted, but then that is an industry-wide problem, which we are trying to work on. And that is something we will come back to you as and whenever something changes here. But as of today, it's more about value proposition. Do you want a ForEx card or an INR card? That's the fundamental question we have to ask a person. If he wants a ForEx card, definitely, we are there. If he wants an INR card at this juncture, we cannot exactly provide what a credit card provides, not being in LRS or TCS. But beyond that, as I said, finally, you have to understand that we are card issuers, whereas the people who are doing all these things, the fintechs are not exactly issuing the credit card. It's the bank's card, which they are issuing and the banks are happy because someone is putting a loss and they are making the profits. So from our perspective, we are clearly focused on ForEx cards, how to bring out the merits of the ForEx card, and it's up to the customer's choice to take a ForEx card or credit card. But as of today, in the last 3 months, maybe taking a ForEx card would have been a wiser decision. I think I would end it up by saying that. Okay, thank you so much. For any further questions, you can always write to the company. We are very happy to provide you specific details as long as we can provide it to everyone. Yes.

Ladies and gentlemen, this was the last question of the day. In case of any questions, you can write to the company on the company's mail ID at [email protected] or [email protected]. As there are no further questions, I now hand the conference over to the management for closing comments.

So thank you very much. It's been a great year, and we have tremendous support from our shareholders, and we look forward to your support in future also. Thanks for joining. For any queries, please visit our website or you can reach out to our Company Secretary, Khushboo Doshi. I now request the moderator to conclude the call. Thank you.

Thank you.

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