VAKRANGEENSEQ4 FY2023June 02, 2023

Vakrangee Limited

3,813words
17turns
5analyst exchanges
1executives
Management on call
Dinesh Nandwana
Managing Director and Group CEO.
Key numbers — 26 extracted
79%
oarded outlets spread across 29 states, union territory. 566 districts and 5159 postal codes. Our 79% outlets are present in deep year Tier-4 to 6 locations. This kind of presence makes us the partne
100%
and strengthen our first-mover advantage, we are planning to cover entire 764 districts which is 100% of district coverage across the country through appointing district level master franchisees. We
17 lakh
er trust us with their day-to-day banking needs. During the financial year 2023, we have opened 17 lakhs bank accounts. 11 lakhs plus insurance, pension policy and did more than 7.1 crore banking trans
11 lakh
day-to-day banking needs. During the financial year 2023, we have opened 17 lakhs bank accounts. 11 lakhs plus insurance, pension policy and did more than 7.1 crore banking transaction with a gross tr
7.1 crore
we have opened 17 lakhs bank accounts. 11 lakhs plus insurance, pension policy and did more than 7.1 crore banking transaction with a gross transaction value of Rs. 38,730 crores. There's a huge under-pen
Rs. 38,730 crore
pension policy and did more than 7.1 crore banking transaction with a gross transaction value of Rs. 38,730 crores. There's a huge under-penetrate rural markets with huge retail and MSME customer base. Further,
Rs. 51.80 crore
nce. Commenting on the quarterly and full year results post-demerger: Our total income stood at Rs. 51.80 crores in Quarter 4 Financial Year ‘22-23 increased by 5.50% on quarter-on-quarter basis. Our profit af
5.50%
erger: Our total income stood at Rs. 51.80 crores in Quarter 4 Financial Year ‘22-23 increased by 5.50% on quarter-on-quarter basis. Our profit after tax is to that 0.68 crores Quarter 4 ‘22-23, incr
0.68 crore
ncial Year ‘22-23 increased by 5.50% on quarter-on-quarter basis. Our profit after tax is to that 0.68 crores Quarter 4 ‘22-23, increased by 423% on quarter-on-quarter basis. For the full year, our total in
423%
rter-on-quarter basis. Our profit after tax is to that 0.68 crores Quarter 4 ‘22-23, increased by 423% on quarter-on-quarter basis. For the full year, our total income stood at Rs. 198.70 crore in ‘22
Rs. 198.70 crore
2-23, increased by 423% on quarter-on-quarter basis. For the full year, our total income stood at Rs. 198.70 crore in ‘22-23 as against Rs. 197.35 crore for the corresponding last year. Our PAT stood at Rs. 1 cro
Rs. 197.35 crore
quarter basis. For the full year, our total income stood at Rs. 198.70 crore in ‘22-23 as against Rs. 197.35 crore for the corresponding last year. Our PAT stood at Rs. 1 crores in Financial Year ‘22-23 as agains
Guidance — 12 items
Dinesh Nandwana
opening
“We plan to achieve 100% district coverage by the end of this financial year.”
Dinesh Nandwana
opening
“Going forward, we are well-structured to transition into a newer bank as we plan to launch newer banking services through our BharatEasy Mobile Super App Platform.”
Dinesh Nandwana
opening
“Through this, we are focused to evolve into unique or to online to offline platform whereby there will be assistance available through the physical Kendra network along with digital near banking services.”
Dinesh Nandwana
opening
“We plan to achieve 100% district coverage and India present.”
Dinesh Nandwana
opening
“We plan to achieve 100% district master franchise coverage by March ’24.”
Dinesh Nandwana
opening
“By 2030 we plan to have 100% Pan India coverage through our physical Vakrangee Kendra Outlet Network along with BharatiEasy Digital Mobile App our targets to reach 3 lakh plus outlets along with the minimum 15,000 plus ATMs.”
Dinesh Nandwana
opening
“With this, our plan is to achieve a revenue target of $1 billion by 2030 along with the gross transaction value of more than $75 billion.”
Ammeet Sabarwal
qa
“So, in that way it is a win-win situation for the entire ecosystem because my franchise is also getting the local level guidance, local level operational support because that Master Franchisee is not a simple employee, but he is a high net worth individual with a lot of experience in the similar kind of business and he has his own set of relationships at the local level where he can help and guide my franchisees in that particular district.”
Ammeet Sabarwal
qa
“So, therefore if you see we have also kind of released our vision 2030 and what we are envisaging here is since we will be setting up the first step is to have a local district level Master Franchisee in place which we complete in this financial year.”
Ammeet Sabarwal
qa
“Therefore, what we are saying is that this year is our consolidation and investment phase where we are investing in building this network of district level Master franchise network and you will see the results over the next few quarters or primarily from the next year onwards where you are going to see a exponential increase in terms of our network, in terms of number of stores as well as in terms of overall gross transaction value and the revenue and those things.”
Risks & concerns — 3 flagged
With a fast pace of digital payment concession cash transaction such as ATM and banking transaction are expected to witness slowdown.
— Dinesh Nandwana
Therefore, there would be profitability and viability challenge for the standalone business model such as only wide level ATM, only banking IP provider only money transfer provided which are dependent on cash transactions.
— Dinesh Nandwana
Our Company has also been globally ranked #1 in the sustainability ESG Risk rating ranking assessed in the software and service industry segment.
— Dinesh Nandwana
Q&A — 5 exchanges
Q
My question is that post demerger which business has been transferred to PLE Governance Company, what impact is there on the service of revenue of Kendra business for demerge, can you please explain?
Ammeet Sabarwal
So if you see basically the demerger has happened primarily into two parts. One is basically the Kendra business which remains in the listed Company which is the pure retail consumer centric business which is the outlet-based business and all the services which was based primarily the IT, ITES equipment trading business, the E governance business as well as some part of the of the B2B trading business that has been shifted to the VL E-Governancee basing. So post demerger now under the Vakrangee Limited we have a pure mobile app which is BharatEasy as well as the physical store which is the Vak
Q
My question is that last year the Company was debt free and now in post demerger result there has been loan for the year 2022 as well for 23, can you explain the same?
Ammeet Sabarwal
Yes. So, basically if you see we have also given a footnote in our result presentation on the same. So, primarily this Rs. 27 crore of debt which you are seeing in the FY22 balance sheet which was earlier we have seen as a debt free Company. This is primarily the interCompany loan basically. Now since the demerger has happened basically now VL E-Governancee is a separate Company versus Vakrangee Limited and therefore once the accounts are getting restated between the two companies also, therefore, this amount is seen and that is what we have also mentioned under the footnote in our result pres
Q
Sir, in the last quarter the reported numbers of the outlets were more than 24,000. However, the current number has been reduced to 20,000 why there has been reduced in the outlet numbers and you have said that you are appointing Master Franchisee and it is their responsibility for new acquisition and day-to-day monitoring of outlets. However, it is helping in how it is helping in the business opportunity and why post appointment of Master Franchisee we are seeing the numbers are getting reduced, can you please answer that?
Ammeet Sabarwal
Sure. So, if you see basically what we have done, we have done a complete exercise where we have gone through our each and every franchise. So, in the last two quarters also where we said that we are upgrading all our existing outlets to the NextGen Vakrangee Kendra 2.0 format and we had focused on basically whether my franchise is an exclusive store with the proper active franchisee being there where they are doing all kind of transactions in place. So, what we have done is if you see we have changed the definition where we are saying active transacting outlet. So, even although where my numb
Q
My question is now the demerger is completed so when the Vakrangee Limited eGovernance Company will be listed and by when can we expect the shares of another Company and what will be the record date?
Ammeet Sabarwal
So if you see basically as per the processes the demerger entity basically which is real eGovernance should get listed within 45 days. So, I think with respect to the record date I will get back to you we will put it on the exchanges as the disclosure, but in terms of the timeline it is around 45 days typically within 45 days we should have this process completed. Thank you.
Q
Thank you everyone for taking time out and attending our Q4 and full year FY23 concall. In case of any further queries which are still left unanswered I would request everyone to you can please email it to us, you can email it to us ammeet@vakrangee.in this is my email ID. So, you can sent an email to this and we will be obliged to reply on this and if you have any further queries or any doubts please feel free to write to us. Thank you and good evening to all of you. Thank you.
Management
Speaking time
Moderator
7
Ammeet Sabarwal
5
Dinesh Nandwana
1
Jignesh Kumar
1
Rajeev Kulkarni
1
Jay Tripathi
1
Ankita Sharma
1
Opening remarks
Dinesh Nandwana
Thank you and good day, dear, ladies and gentlemen. It is a pleasure to greet you all once again on behalf of our Board of Directors and Senior Management. We begin by thanking all of you for having the spare time in joining us here today to discuss our 4th Quarter ending for the Full- Year Financial Year 2023. I would take this opportunity to update you all in this regard to our demerger. The Honorable National Company Law Tribunal (NCLT) has given the final approval for the demerger of Vakrangee E-Governance and IT Solutions business. NCLT has paved the way towards creation of two separate listed entities that is Vakrangee Limited and VL E-Governance & IT Solutions Limited. Vakrangee Limited is already a listed entity and VL E-Governance & IT Solution Limited to be listed as a separate entity. Our current quarter and full year results have been reported on a post-demerger basis. On current listed entity, Vakrangee Limited now consists of the existing business of Vakrangee Kendra phys
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