Dreamfolks Services marked its consolidated net profit for the June quarter at 13.43 crore, turning the tables when compared to a loss of Rs 1.38 crore a year ago. The company, which got listed today, its total revenue for the quarter stood at RS 160.46 crore, an increase of 545.47 percent from Rs 24.85 crore in the same quarter last year.
The spike in its profits and revenue can be attributed to the resumption of air travel that was disrupted hugely last year, as the company is involved in providing lounge services at airports. Hence, growth in air travel commensurates with its likely growth.
Earlier this morning, the shares of the company were listed on bourses at a premium of 56 percent. However, this stock experienced some selling post-listing. With a 43 percent rise from the issue price, it was trading at Rs 466.
The boost in investors' confidence around the listing has been attributed to its healthy initial public offering subscription, positive market conditions, and leadership in the airport lounge aggregate industry. This further led to the Rs 562 crore IPO receiving a strong response from investors, with the IPO getting subscribed 56.68 times during August 24 to 26.
India's largest airport service aggregator platform, Dreamfolks Services, provides access to airport related services such as food and beverage pickup and drop service. The advantage in the segment, along with significant market share, culminates in analysts' having a positive view on the issue.