WSFX Global Pay Limited — Call Transcript 2021

Aug 17, 2021

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Date: 17[th] August, 2021

To, The Manager, Department of Corporate Services, BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai – 400 001

Subject : Transcript of earning conference call Scrip ID: WSFIN Scrip Code: 511147

Dear Sir/ Madam,

We are enclosing the copy of transcript of the Earnings Conference Call held on Monday, 16[th] August, 2021. The same will be uploaded on the website of the Company, www.wsfx.in.

You are requested to take the same on your record.

Thanking You,

Yours faithfully,

For Wall Street Finance Limited

Dipesh Digitally signed by Ramniklal Dipesh Ramniklal Dharod Date: 2021.08.17 Dharod 15:35:04 +05'30'

____ Dipesh Dharod Chief Financial Officer

Encl: As above

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“Wall Street Finance Limited Q1 Investors Conference Call”

August 16, 2021

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MANAGEMENT: MR. N. SRIKRISHNA - EXECUTIVE DIRECTOR AND CEO, WALL STREET FINANCE LIMITED MR. DIPESH DHAROD - CHIEF FINANCIAL OFFICER, WALL STREET FINANCE LIMITED

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Wall Street Finance Limited August 16, 2021

Moderator: Ladies and gentlemen good evening and welcome to Quarter 1 investors conference call of Wall Street Finance Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing “*” then “0” on your touch tone phone. 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 over the conference to Mr. N. Srikrishna - Executive Director and CEO and Mr. Dipesh Dharod - Chief Financial Officer, thank you and over to you Sir.

N. Srikrishna: Thank you, Good Evening, this is Srikrishna here along with my colleague Dipesh and it is a pleasure once again to connect with our investors. I take this opportunity to present our financials for the first quarter along with what has happened in the Q1 and also the strategic direction the company is taking. The presentation is already uploaded on our company’s website as well as the BSE website.

Now, we will go to the presentation. I will start with a brief introduction of the company. So currently, Wall Street has positioned itself as a Forex Fintech, which provides foreign exchange services and outward remittances through its 17-branch network and digital platforms. Company is a listed company, it is a 30+ years’ heritage, they have been there for the last 30+ years. We are an AD – II licensed player, which means we can both sell currencies, pre-paid cards and also do outward remittances and the LRS purposes. We do these business activities and these products are launched in association with various banks like we have a WSFx Smart Currency Card, which is a co-branded card with Yes Bank. We also sell Thomas Cook cards, we process our LRS remittances through our various tie-ups with banks like IndusInd Bank, Yes bank and also do certain other LRS transactions in association with Axis Bank, SBM, RBL, etc. We have a full-fledged Tech platform for our corporates and also a specialized platform for Lead Management for our Agent partners. We also have our Smart Forex App for which we specifically focus on students and millennials and we have recently launched our portal also.

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Wall Street Finance Limited August 16, 2021

In the corporate side, we handle key customers like E&Y, Mphasis, Novartis, Hexaware, L&T etc. We also are forex partners of HDFC Credila and they all relate in WSFx for the forex needs, both through our branch network and through our Tech platforms. So, if you look at it, the last 3 years were significant. Yes, we have been hit by the Pandemic but in these 3 years, we have really worked towards our work-delivered digital journey and today have a complete set of digital solutions for all segments of our customers. Now, we get into highlights for Q1, so after, when we thought the Pandemic was over, we had the second wave of the Pandemic, again we were by headed into lockdowns, travel restrictions. So, this had a big impact because April, May, June is tourism, tourist season and we thought that will pick up but unfortunately the second wave took its toll and naturally we are left with the only business of student remittances. So as a company, we did lot of cost optimization, we did some salary revisions, reduction in fees, reduction in rent and all and we were able to bring down the expense to some extent. During this quarter, study abroad was the only segment which sustained because of investee key remittances.

Broad look at the financials, our GTO was around INR 406 crore, which is a drop of 20% quarter-on-quarter. Net revenue was down to Rs. 2.63 crore, which was a drop of 18% over the previous quarter. In fact, expenses we were able to reduce around 8%, we reduced it to around Rs. 4.16 from a Rs. 4.80 crore levels previous quarter. PBT was a negative of 172 lakhs, which again there was a small reduction in PBT but last quarter we had a provision because of which our negative was higher.

From a digital side, this was the quarter we got our ISO 27001 Certification from TUV because of the digital company, it is important that we have a strong information and security system and also various other protocols which ensures privacy and safety. We also have participated in RBI sandbox for Cross Border Remittances and showcased our product, it has been very positive. We also launched our Smart Forex Portal, we already had a App but now we have re-designed our website and portal and that is something which we launched last month. One good thing about our digital platform is that the corporate side of things, 56% of all transactions are now routed through the corporate platforms. So, to go deeper into the financials part, now I hand over to Mr. Dipesh, the CFO.

Dipesh Dharod:

Hello everyone, good evening. With regards to the next slide, I would like to mention about quarter-on-quarter results that are there. From the previous year same quarter, our

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Wall Street Finance Limited August 16, 2021

revenue from operations were Rs. 312 lakhs, we grew to Rs. 585 lakhs, about 87% jump in the revenue. And on the other income portion, it was a minor dip of about 10%, from Rs. 25 lakhs we grew to Rs. 22 lakhs. For profit before tax, that is the loss figure, in the last year same quarter, that is Q1 2020-2021, we were at Rs. 188.50 lakhs against which currently we are at Rs. 171.72 lakhs and profit after tax is Rs. 130 lakhs on quarter 1, 20202021 against Rs. 118 lakhs in quarter 1, 2021-2022. When we compare the previous quarter, that is quarter 4 of 2020-2021 to quarter 1 of 2021-2022, there was a marginal dip in the revenue numbers from Rs. 665 lakhs to Rs. 585 lakhs. Other income has dropped from Rs. 1.02 crore to Rs. 22 lakhs, this is basically because of the provision that we had done for Unimoni which was reversed as part of the other income, so that is that additional figure. With regards to profit before tax, we were negative Rs. 216 lakhs vis-à-vis this current quarter we are at Rs. 172 lakhs and with regard to profit after tax, in the previous quarter we were at Rs. 191 lakhs and currently we are at Rs. 118 lakhs for the current quarter.

Moving on to the next slide, this is a quarter-on-quarter picture that we give you for the last 9 quarters, how the company has fared particularly 2019-20 which was like a preCOVID era and post that was post-COVID era. So, in that I will just take some brief numbers, if you talk about revenue from every quarter 1, we started Rs. 820 lakhs in 2019-20, we dipped down to Rs. 312 lakhs and now again we have grown back to Rs. 585 lakhs and when we talk about expenses, basically, selling, and administrative expenses, we were at Rs. 5 crores + in quarter 1 of 2019-20, we came down to Rs. 3.65 crore in quarter 1 and right now we are at Rs. 420 lakhs. Of course, there is a reduction from previous quarter because of some savings across all parameters.

I will move to the next slide which talks about the published results as per regulation 33 which are already published and are the replicas of what we have already talked about. Further, the next slide shows the graphical representation of the gross and the net revenue along with selling and administrative expenses. There also a pictorial and graphical representation, where you can see that revenues have been going up and going down and we are seeing in the market across, where and expenses are under control, currently now at Rs. 420 lakhs for the current quarter.

With regards to our priority segment, which mainly is cards and outward Remittances since the last quarter because of the pandemic there was absolutely zero travel or minimal travel, the cards sale has not happened and hence it shows a dip on this count, hopefully

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Wall Street Finance Limited August 16, 2021

to see better figures from the next quarter onwards but Remittance of course has dipped from previous quarter but has grown over the years to about 79% from the base year that is quarter 3 of 2017-18 where we started the FOREX business. Further to elaborate on the digital journey, I will handover to Mr. Srikrishna who will talk about the digital portion. Thank you.

N. Srikrishna:

Moderator:

Vikram Damani:

N. Srikrishna:

Vikram Damani:

Thank you Dipesh. So, coming back quick update on the digital journey, so few things, one is we got our certification of ISO 27001 and also, we launched the smart FOREX portal and App, completely redesigned portal, and app, taking care of various customer segments which, we concentrate on, it is got separate journey for students, separate journey for personnel, so that is one thing which we have done in the B2C side. As far as other platforms are concerned, we have a smart corporate platform, which is for corporate, obviously corporate business is down, but we would like to say as of now we have 200+ corporate who have adopted to this platform and major FOREX is ordered through this platform. We also have a smart agent platform, which is a complete lead and order management system, we have 300+ agents onboarded in this, and we expect that all these agents will start doing business once the travel season starts. As far as smart currency card is concerned, we have a VISA card in collaboration with YES Bank and in fact we launched it in 2019 July. It has been doing well and we are looking for a good growth once season starts because, till last quarter the travel was down and it was more of a remittance but with now people travelling, we are hoping to see a good traction in the our own Wsfx smart currency card also. With this I would come to the end of our presentation. Thank you everyone. I would like to now handover the conference to the Moderator. Thank you. Thank you very much. we will now begin the ‘Question & Answer’ session. Anyone who wishes to ask a question may press * and 1 on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press * and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Vikram Damani from Damani Securities. Please go ahead.

Hi. Good afternoon. Just one question since the end of the quarter how our sales are looking? How are we doing, is it better than last quarter, any sort of guidance that you can provide?

For this current quarter?

That is right.

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Wall Street Finance Limited August 16, 2021

N. Srikrishna: Essentially, so today I do not want to talk on numbers but you can say that the student season is on because the second wave was quite ferocious and everything was impacted but we could only say that now the students have started travelling. Not only have universities see it happening but the travel in terms of them actually taking a flight and going on campus is also happening, so we are looking forward to a good Q2. Vikram Damani: Okay I guess that is the only thing sort of that we can even ask right now, there is not much to say. N. Srikrishna: Yes, I do agree because corporate and wholesale segment pickup is still a quarter away because once regular flight starts, then is where those two segments pickup but definitely the key segment, the segment which generally the normal market contributes 70% of the business, is started picking up. Vikram Damani: Any indication if you are close to getting maybe even a breakeven level, on a pre-tax basis? N. Srikrishna: So, essentially as I said our numbers are good but breakeven and all we will tell you at the end of the quarter, right? Because see we were expecting good result in Q1 because we thought, second wave we did not expect, now we do not want the third or the fourth wave you know, so essentially, we would like to keep, be optimistic but maybe let us wait for other 30-40 days, because I think the season is good, we do not want any shocks and we do not want to be too optimistic but it is good. Vikram Damani: Okay good to know. Thank you, All the Best, I will see at the Q2 Earnings Con Call. N. Srikrishna: Yes, definitely. Thank you. Moderator: As there are no further questions, I now hand the conference over to Mr. N Srikrishna and Mr. Dipesh Dharod for his closing comments. N. Srikrishna: Thank you. I would like to thank everyone for joining us in this call. I will also like to thank you for the support and understanding, our business has really been affected due to the pandemic, but we are very optimistic, and we need your support and confidence. In case there are any queries, you can visit our website or please reach out to our company secretary. I now request the Moderator to conclude the call. Thank you. Moderator: Thank you. Ladies and gentlemen on behalf of Wall Street Finance Limited, we thank you for joining us and you may now disconnect your lines. Thank you.

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