WSFX Global Pay Ltd Management Discussions

Global Economic Overview

The global economy in FY 2024-25 maintained a path of moderate but uneven growth, shaped by monetary tightening, geopolitical uncertainties, and evolving trade flows. The US economy remained resilient, supported by consumer spending and employment, while Europe experienced subdued growth due to energy challenges and weak demand. In Asia, Chinas recovery was below expectations, while India and Southeast Asia emerged as key drivers of regional growth.

Global inflation moderated but remained above central bank targets, prompting the US Federal Reserve, ECB, and others to continue restrictive interest rate policies. Trade and investment flows were influenced by supply chain realignments and geopolitical tensions, while energy and commodity markets saw continued volatility. Global GDP growth was estimated at ~3%, with emerging markets contributing the bulk of expansion.

Indian Economic Overview

India remained one of the fastest-growing economies globally, with GDP growth of 6.5-7% in FY 2024-25. Growth was driven by robust domestic demand, government-led capex, and strong services sector performance. Manufacturing gained momentum under the PLI schemes, while digital adoption accelerated across industries. Inflation eased from earlier highs, though food and fuel volatility persisted.

The external sector remained stable, supported by comfortable forex reserves and a manageable current account deficit, despite global trade headwinds. The RBI maintained a balanced monetary stance, ensuring stability while sustaining growth momentum. India also continued to attract strong FDI inflows, further reinforcing its role as a global hub for services, technology, and manufacturing.

Forex Industry

The global forex and remittance industry in FY 2024-25 reflected a complex interplay of post-pandemic recovery and geopolitical disruptions. Following the strong rebound in travel and trade, the industry moved into a phase of stabilized yet resilient growth. Leisure and business travel volumes rose as consumer confidence returned and international borders remained open, driving sustained demand for foreign exchange, forex cards, and cross-border remittances. International student mobility also resumed, though it faced headwinds from stricter visa regimes and intake caps in certain markets.

At the same time, the industry was shaped by heightened geopolitical uncertainty. The prolonged Russia-Ukraine conflict, rising tensions in the Middle East, and disruptions in global shipping lanes created volatility in energy and commodity prices, impacting trade-linked forex flows. For India, these global challenges were compounded by strained diplomatic relations with the US and Canada, alongside tightening of student visa regulations in major destinations such as Canada, the USA, and Australia. These factors directly affected education-related remittances under the Liberalised Remittance Scheme (LRS), leading to a decline in student forex outflows as visa approvals slowed.

The Liberalised Remittance Scheme (LRS) in India mirrored these dynamics. Outward remittances fell by 7% YoY to USD 29.56 billion, reflecting pressure on student and high-value personal remittances due to visa restrictions in key destinations such as Canada, the USA, and Australia. Student remittances declined from USD 3.48 billion to USD

2.92 billion, while investment-related remittances rose by 38%, highlighting a shift towards cross-border investments and international diversification.

The industry also witnessed strong momentum in digital adoption, with fintech platforms reshaping the way customers access forex and remittance services. Mobile-first solutions, API-driven platforms, and multi-currency prepaid cards are rapidly becoming mainstream, enhancing customer convenience while ensuring compliance with regulatory standards.

Looking ahead, the forex industry remains well-positioned for growth. Continued expansion of outbound travel, increasing globalization of education and work, and rising cross-border investment flows will sustain demand. However, challenges such as regulatory changes, taxation policies, and geopolitical risks will remain critical factors shaping the sector. Companies that combine digital innovation with regulatory compliance are expected to be the long-term winners in this evolving landscape.

Outward Remittance under Liberalised Remittance Scheme (LRS)

Item - (Figures in USD Million)	2024- 25	2023- 24	2022- 23
1 Outward Remittances under the LRS	29,563.17	31735.74	27140.65
1.1 Deposit	705.27	916.45	1011.07
1.2 Purchase of immovable property	322.83	242.51	188.73
1.3 Investment in equity/debt	1,698.94	1510.89	1256.15
1.4 Gift	2,938.69	3580.27	3005.27
1.5 Donations	11.84	11.31	12.78
1.6 Travel	16,964.57	17006.27	13662.15
1.7 Maintenance of close relatives	3,722.02	4611.53	4174.06
1.8 Medical Treatment	81.2	79.62	55.74
1.9 Studies Abroad	2,918.92	3478.65	3427.81
1.10 Others	198.89	298.24	346.89

Company Strategy and Digital Transformation

(Source - RBI)

WSFx Global Pay Ltd. (Global Pay) has embarked on a clear strategy to position itself as a forex-led fintech company, leveraging technology, partnerships, and customer-centric innovation to deliver sustainable growth. The Companys strategy is anchored on three key pillars: expansion of customer segments, strengthening of digital capabilities, and compliance-driven execution.

On the customer front, Global Pay continues to focus on students, corporates, and leisure travellers as its core growth drivers. The student segment remains pivotal, supported by partnerships with education consultants and loan providers, enabling seamless university fee remittances and living expense solutions. In the corporate segment, the Company is deepening relationships through onboarding of large clients to the Smart Corporate Platform, enabling efficient management of business travel forex requirements. For the leisure segment, the Company is pursuing co- branded credit card opportunities with banks, complementing its prepaid forex offerings.

A major milestone in FY 2024-25 was the launch of the WSFx Global Pay Card as a Principal Member of VISA. Designed as the Companys flagship Direct-to-Consumer (D2C) product, the Global Pay Card is offered in two variants: a Single-Currency card, which provides zero cross-currency charges for travelers to a specific destination, and a Multi-Currency card, which supports 12 foreign currency wallets. Both variants are integrated with a companion mobile app for easy management, enabling customers to load, track, and manage their spends seamlessly. Enabled with NFC technology, the Global Pay card supports contactless transactions and boasts global acceptance at over

31.4 million VISA merchant outlets. Its popularity is surging among international travellers and is anticipated to be a major growth driver for the company.

With global acceptance, enhanced security, and flexibility, the Global Pay Card positions WSFx as a strong player in the highly competitive prepaid card market.

In addition, WSFx has built a robust digital ecosystem through:

- WSFx Global Pay App & Portal - a retail super-app & platform offering forex cards, foreign currency, remittances, and travel-related services.

- Smart Corporate Platform - streamlining forex needs for business clients.

- Smart Agent Platform - enabling digital lead management and order processing for partners.

- Global Pay Platform (F-PaaS) - empowering partners to distribute forex and remittance solutions directly to their customers online.

These platforms are underpinned by digital KYC modules for seamless onboarding and advanced compliance features, ensuring transactions remain secure, transparent, and efficient. Alongside, the Cobranded WSFx Smart Currency Card (WSCC), supporting 14 international currencies and an INR wallet, continues to gain traction with digitally-savvy students and millennials.

Looking forward, the Companys strategy is to deepen its D2C franchise, leverage partnerships and corporate acquisitions, and expand its digital suite to cover the full spectrum of forex and cross-border payment needs. Guided by the values of Trust, Transparency, Convenience, and Compliance, WSFx is building a future-ready platform to capture opportunities in the rapidly evolving global payments ecosystem.

Key Customer Segments & Performance

WSFx Global Pay Ltd. delivered a well-balanced performance across its core customer segments in FY 2024-25, with Corporate and Student businesses continuing to remain the strongest growth drivers. Supported by prepaid cards and outward remittance products, the Company leveraged its digital-first strategy and strong referral network to achieve deeper penetration in both institutional and individual customer bases.

The Corporate segment contributed a significant share to turnover and net revenue, with steady onboarding of new clients on the Smart Corporate Platform. This digital platform has emerged as a differentiator, enabling corporates to manage their travel-related forex requirements with transparency, compliance, and cost efficiency. During the year, WSFx successfully acquired several large corporate accounts, further expanding its presence in the SME and mid-market segments. Corporate forex volumes recorded healthy YoY growth, supported by increased adoption of digital solutions.

The Student segment continued to play a pivotal role in the Companys portfolio, supported by its strong partnerships with education consultants and education loan providers. Despite challenges arising from visa restrictions and intake caps in key markets such as Canada, the USA, and Australia, the segment contributed significantly to overall turnover and net revenue. Strategic initiatives, including segment-specific features in the newly launched Global Pay Card and the student-centric distribution ecosystem, helped mitigate some of the demand contraction. While forex outflows for students declined industry-wide, WSFx was able to maintain market share and deepen engagement with repeat student customers.

The Retail segment saw renewed momentum as leisure travel rebounded post-pandemic, driving demand for forex cards, foreign currencies, and outward remittances.

The Wholesale segment maintained stable performance, catering to authorised entities such as Banks, AD II licence holders, and FFMCs, along with importers and exporters of foreign currency.

The Other Remittances segment, comprising outward flows under LRS for tours, immigration, visa fees, and family maintenance, delivered steady volumes.

Overall, WSFx achieved a healthy mix of business across customer groups, with 60% of turnover processed digitally through its omni-channel platforms. The diversification across segments has enabled the Company to mitigate risks, capture new opportunities, and build a resilient foundation for sustainable growth.

The overall distribution between the Companys Customer segments with regard to the turnover and the net revenue are given as under:

ZONE WISE PERFORMANCE

The forex business of WSFx Global Pay Ltd. continues to demonstrate strength across its operating zones, each making a distinct contribution to the Companys performance. The South Zone emerged as the largest growth driver, accounting for the highest share of both forex turnover and net revenue, reaffirming its strategic importance in the overall business mix.

The North Zone delivered strong volumes, contributing significantly to turnover and maintaining its position as a vital hub for student and corporate forex flows. The West Zone also performed steadily, underlining the Companys broad geographical reach and balanced customer base. The East Zone, though smaller in scale, continues to add value through niche opportunities and focused customer segments.

In terms of forex turnover, the regional distribution stood as follows: South Zone at 42%, West Zone at 31%, North Zone at 23%, and East Zone at 4%. Contribution to net revenue mirrored this leadership, with the South Zone at 41%, followed by North at 22%, West at 14%, and East at 5%.

The performance in each region reflects our dedication to providing tailored solutions, meeting diverse customer demands, and solidifying Global Pays position as a leading player in the forex industry. This diversified zonal presence has also helped mitigate regional market risks while capturing growth opportunities across the country, further strengthening the Companys pan-India footprint.

Internal Control System

At WSFx Global Pay Ltd., a strong internal control framework is at the heart of our governance philosophy. We are committed to building a secure, transparent, and compliant operating environment that safeguards stakeholder interests and ensures long-term sustainability. Our systems are designed in line with Reserve Bank of India (RBI) guidelines, reinforced by independent audits, and backed by global certifications.

Key Focus Areas

System Upgradation: Continuous improvements are made across our financial, operational, IT, and accounting control systems to ensure efficiency, security, and compliance with regulatory standards.

Enhanced Due Diligence: Rigorous due diligence processes are in place to mitigate operational, financial, and compliance risks, ensuring prudence in every transaction.

Compliance Checks & Concurrent Audits:

- Regular compliance checks monitor adherence to internal policies, RBI regulations, and statutory norms.

- Concurrent audits by independent external auditors, as mandated by the RBI, provide real-time oversight and strengthen governance. This independent validation enhances transparency and builds confidence among stakeholders.

IT Audits, Internal Audits & System Audits:

- IT Audits ensure that information security, data privacy, and cybersecurity measures are robust, in line with

global best practices.

- Internal Audits review business processes and risk management practices, ensuring internal policies and controls are consistently applied across functions.

- System Audits test the effectiveness of digital platforms, payment systems, and automated controls, validating both operational resilience and regulatory compliance.

ISO & PCI Certifications: WSFx Global Pay Ltd. is proud to be ISO 27001 certified for Information Security Management and PCI DSS certified, ensuring the highest standards of security and data protection across all payment and card operations.

Training & Development: Employees undergo regular training on AML/KYC norms, IT security, operational compliance, and soft skills, reinforcing a culture of governance and accountability.

Digital Platforms: Our digital-first solutions are designed with Trust, Transparency, Compliance, and Security as core pillars, ensuring seamless yet compliant customer experiences.

Audit Committee Oversight: An independent Audit Committee, comprising a majority of Independent Directors, actively reviews audit reports and monitors the adequacy of controls, ensuring prompt corrective action where required.

Employee Relations, Welfare, Training & Development

At WSFx Global Pay Ltd., we believe our employees are our most valuable asset and the driving force behind our sustained growth. We are committed to fostering a work environment built on trust, inclusiveness, collaboration, and continuous learning.

Employee Relations

The Company continues to enjoy harmonious and cordial relations across all its branches and business units. We place strong emphasis on maintaining open channels of communication between management and employees, ensuring transparency, mutual respect, and employee participation in the growth journey. Our culture encourages accountability, innovation, and recognition of merit, thereby strengthening employee engagement.

Employee Welfare

WSFx has put in place various employee welfare measures, including health and accident insurance coverage, wellness programs, flexible work arrangements, and financial assistance policies for emergency situations. Employee welfare committees at different locations actively address workplace needs and ensure employees feel supported both personally and professionally.

Training & Development

Recognising the importance of talent development in a fast-changing business and regulatory landscape, the

Company runs structured training and capacity-building programs throughout the year. These programs focus on:

?€? Regulatory & Compliance Training: Specialised modules on KYC, AML, FEMA, RBI guidelines, ISO standards, and PCI DSS compliance to ensure strict adherence to regulatory frameworks.

?€? Skill Development: Role-specific training in operations, digital platforms, product knowledge, customer service, and process efficiency.

?€? Leadership & Soft Skills: Programs designed to enhance communication, decision-making, problem-solving, and team management.

?€? Technology & Digital Transformation: Hands-on training to help employees leverage new tools, platforms, and analytics for improved productivity.

Training sessions are delivered through a blend of workshops, digital learning modules, and on-the-job mentoring, ensuring holistic development.

Workforce Strength

As of 31st March 2025, the Company employed a dedicated workforce of 358 professionals. Their contribution, resilience, and alignment with our values of Trust, Transparency, Compliance, and Customer-Centricity have been instrumental in positioning Global Pay as a leading player in the Forex and cross-border payments industry.

Prevention of Sexual Harassment (POSH)

The Company is fully committed to maintaining a safe, respectful, and inclusive workplace. In line with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, Global Pay has adopted a comprehensive POSH Policy, supported by a duly constituted Internal Complaints Committee (ICC). Regular sensitisation sessions and awareness programs are conducted across the organisation to foster a culture of dignity, equality, and respect. We follow a strict zero-tolerance approach towards sexual harassment and remain steadfast in our commitment to providing a secure, fair, and empowering work environment for all employees.

Financial Performance

A detailed discussion on the financial performance of WSFx Global Pay Ltd. for the year under review is provided in the Directors Report. As per Indian Accounting Standards (Ind-AS) Segment Reporting requirements, the Company operates under a single reportable segment and hence, no separate segmental reporting is applicable.

Key Financial Ratios

In accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, the Company is required to provide details of significant changes (25% or more) in key sector-specific financial ratios compared to the immediately preceding financial year.

For FY 2024-25, the operating profitability ratios reflect an improvement, driven by stronger business performance and enhanced operational efficiency. The Operating Profit Ratio increased to 8.78% in 2025, up from 6.99% in 2024, underscoring better margin management across business lines.

However, the Net Profit Margin Ratio declined from 5.89% in 2024 to 4.01% in 2025. This decline is primarily attributable to the one-time reversal of deferred tax assets amounting to ?‚?315.51 lakhs, on account of utilization of carry-forward losses and unabsorbed depreciation.

The Return on Net Worth (RoNW) also showed a moderation from 12.44% in 2024 to 8.92% in 2025, largely influenced by the same deferred tax adjustment.

The Interest Coverage Ratio improved to 7.83 times from 6.34 times in the previous year, reflecting a stronger ability to service debt obligations from operating profits.

The Current Ratio increased from 1.38 in 2024 to 1.46 in 2025, indicating a healthier liquidity position and the Companys strengthened capability to meet short-term liabilities.

The Debt Equity Ratio increased from 0.04 in 2024 to 0.09 in 2025, which remains conservative, demonstrating a prudent capital structure and low leverage.

Particulars	Standalone
	2025	2024
Operating profit ratio (%)	8.78%	6.99%
Net profit margin ratio (%)	4.01%	5.89%
Return on net worth (%)	8.92%	12.44%
Interest coverage ratio (times)	7.83	6.34
Current ratio (times)	1.46	1.38
Debt equity ratio (times)	0.09	0.04

Overall, while operating performance showed marked improvement, the reported net profitability was temporarily impacted by deferred tax adjustments. The Company continues to maintain a strong balance sheet with robust liquidity and low debt levels, ensuring long-term financial stability.

Cautionary Statement

The statements made in the Management Discussion and Analysis section of this Report may include forward- looking statements within the meaning of applicable laws and regulations. These statements are based on certain assumptions, expectations, and projections of the Companys future performance.

However, actual results may differ materially from those expressed or implied in such statements due to a variety of factors beyond the Companys control. These factors include, but are not limited to, changes in government policies and regulations, fluctuations in foreign exchange rates, amendments in tax laws, evolving economic conditions, political developments, market dynamics, and other incidental factors.