VAKRANGEENSEQ1 FY24July 19, 2023

Vakrangee Limited

4,927words
17turns
5analyst exchanges
1executives
Management on call
Dinesh Nandwana
Managing Director & Group
Key numbers — 25 extracted
84%
onboarded outlet spread across 32 states allocated and 557 districts and 5,383 postal codes. Our 84% outlets are present in deep rural Tier 4 to 6 locations. This kind of presence makes us the partn
100%
on and to extend 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 Franchisee. We h
2 crore
d 4,00,000 new bank account 2,00,000 plus insurance schemes plus pension policy and did more than 2 crore banking transaction with a gross transaction value of Rs. 11,734 crore. There is a huge under pen
Rs. 11,734 crore
us pension policy and did more than 2 crore banking transaction with a gross transaction value of Rs. 11,734 crore. There is a huge under penetrated rural market with a huge retail and MSME customer base. Further
Rs. 55.9 crore
ne to offline consumer experience. Commenting on the quarterly results, our total income stood at Rs. 55.9 crore in Quarter 1 23- 24 increased by 14.7% on a year-on-year basis. Our EBITDA is 6.9 crore increased
14.7%
n the quarterly results, our total income stood at Rs. 55.9 crore in Quarter 1 23- 24 increased by 14.7% on a year-on-year basis. Our EBITDA is 6.9 crore increased by 55.9% on a year-on-year basis and o
6.9 crore
od at Rs. 55.9 crore in Quarter 1 23- 24 increased by 14.7% on a year-on-year basis. Our EBITDA is 6.9 crore increased by 55.9% on a year-on-year basis and our PAT stood up at 0.49 crore in Quarter 1 and 23
55.9%
Quarter 1 23- 24 increased by 14.7% on a year-on-year basis. Our EBITDA is 6.9 crore increased by 55.9% on a year-on-year basis and our PAT stood up at 0.49 crore in Quarter 1 and 23-24 increased by
0.49 crore
basis. Our EBITDA is 6.9 crore increased by 55.9% on a year-on-year basis and our PAT stood up at 0.49 crore in Quarter 1 and 23-24 increased by 716.7% on year-on-year basis. Our profitability has started j
716.7%
on a year-on-year basis and our PAT stood up at 0.49 crore in Quarter 1 and 23-24 increased by 716.7% on year-on-year basis. Our profitability has started just improving on year-on-year basis as well
12.5%
ell as there has been improvement in operating margin whereby our EBITDA margins have improved to 12.5% for the current quarter. Our growth in margins and profitability shall continue a
14,920.7 crore
e up our network and operating leverage hits in Quarter 1 23-24 our gross transition value closed 14,920.7 crores, total of transition cost 3.3 crores. We have appointed exclusive district level Master Franchis
Guidance — 20 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 neo bank as we plan to launch neor banking services through our BharatEasy Mobile Super app platform.”
Dinesh Nandwana
opening
“We plan to achieve 100% district coverage Pan India presence by 2024.”
Dinesh Nandwana
opening
“By 2030, we plan to have 100% Pan India coverage through our physical Vakrangee Kendra outlet network along with BharatEasy digital mobile app.”
Dinesh Nandwana
opening
“Our target is to reach 3,00,000 plus outlet along with minimum 15,000 plus ATMs.”
Dinesh Nandwana
opening
“We plan to achieve 100% district level Master Franchisee coverage by March 24.”
Dinesh Nandwana
opening
“With this, our plan is to achieve a revenue target of US $1 billion by 2030 along with the gross transaction value of more than $150 billion US.”
Jitesh Kumar
qa
“I have seen that the company has released the vision 2030, can you please throw some light on the same and as per current number how you plan to achieve the revenue of $1 billion and the target of 300,000 number of outlets, can you please explain the growth plan of the company?”
Ammeet Sabarwal
qa
“So, if you see basically what we are saying is that our first target is to have a complete presence through our Master Franchisee network.”
Ammeet Sabarwal
qa
“So, we intend to cover an entire 764 districts in this financial year itself.”
Risks & concerns — 4 flagged
With the development of a digital economy India is fastly moving towards digital payments mechanism and emerging as a cashless society with the fast pace of digital payment penetration, cash transactions such as ATM and banking cash transactions are expected to witness slowdown.
— Dinesh Nandwana
Therefore, there would be profitability and viability challenge for standalone business model such as only White label ATMs, only banking AePS provider only money transfer providers which are dependent on cash transactions.
— Dinesh Nandwana
Our company also has been globally ranked number one in the Sustainalytics, ESG risk ranking assessed in the software and service industry segment.
— Dinesh Nandwana
Earlier we used to have a field level team and there was the monitoring was a very difficult phase specifically during COVID.
— Ammeet Sabarwal
Q&A — 5 exchanges
Q
I have seen that the company has released the vision 2030, can you please throw some light on the same and as per current number how you plan to achieve the revenue of $1 billion and the target of 300,000 number of outlets, can you please explain the growth plan of the company?
Ammeet Sabarwal
So, basically, if you see, we have officially released our vision 2030 as a detailed document in place which is also available on our website, but I would like to take you through this. So, if you see basically what we are saying is that our first target is to have a complete presence through our Master Franchisee network. So, we intend to cover an entire 764 districts in this financial year itself. So, before March 24, we wish to have a exclusive district level Master Franchisee partner in place. So, already we have completed 292 districts so which is almost you can say 40% of the country has
Q
My question is that you have started the concept of Master Franchisees and you have appointed Master franchise in more than 290 districts. How do you see that these Master Franchise are helping in day-to-day business and how it is helping and increasing the revenue as well as profitability, also the operating margin are seen improving, but where do you see long-term operating and profit margins stable? Can you please elaborate?
Ammeet Sabarwal
So, I will just give you a little bit brief on the Master Franchisee. So, typically a Master Franchisee is an exclusive business partner to us at the district level location. So, for every one district there is one Master Franchisee whom we select. This Master Franchise is typically with the background or with the profile of where he has been running a business similar to a distribution business, so he might be a distributor of a telecom or a money transfer or insurance or any of these kind of services. So, he already has an experience of running a network as well as managing operations. Secon
Q
So, my question is why the number of outlets and ATM are not increasing and it is stable. You are appointing Master Franchises and it is their responsibilities for new acquisition. So, can you please explain the same? Also, how you are planning to achieve the year-wise target of outlets, how do we see the growth in terms of the new outlet expansion plan?
Ammeet Sabarwal
So, if you see basically as I said our first focus over the last six months has been on building this Master Franchisee network because we feel that the next lag of growth has to be led by the Master Franchise network because once we have the Master Franchise network in place then the scalability can be at a multiple facets rather than going in a linear fashion. So, we felt to achieve the growth target which we are targeting, we need to have a local level presence in place and that is where the master franchisee focus came in. And if you see in the last six months lot of energy has gone into l
Q
My question is now the digital payment is increasing day by day and how it is impacting our business, do we see any decrease in the term of number of transition also post demerger we see any new line of services to be added in the business as e-Governance business has been transferred to another entity? Is there any new partnership or services and pipeline, can you please explain?
Ammeet Sabarwal
So, as we also highlighted in our introduction speech also that yes India is moving towards the cashless society and lot of digital transactions, market share of the UPI and everything what we are reading today is a reality where the number of digital transactions are increasing. And that is where it challenges the standalone business model. So, a standalone, it's the white label ATM operator or a standalone say DMT money transfer agent or a standalone BC, AePS enabled agent who is just doing cash deposit withdraw transaction then it's a threat to all those standalone businesses, but what make
Q
Thank you everyone for taking time out and attending our first quarter FY24 concall in case of any further queries or any doubt, please feel free to reach out to us, my e-mail ID is Ammeets@vakrangee.in and also our vision document as well as our corporate presentation is available on the website. So, anyone who would like to have to look at it can please download from our website. Thank you.
Management
Speaking time
Moderator
7
Ammeet Sabarwal
5
Dinesh Nandwana
1
Jitesh Kumar
1
Ankita Sharma
1
Jay Tripathi
1
Rajeev Kulkarni
1
Opening remarks
Dinesh Nandwana
Thank you. 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 spare time in joining us here today to discuss our first quarter earnings for the financial year 2024. Our current listed entity Vakrangee Limited now consist of existing business of Vakrangee Kendra physical outlet as well as the digital platform of BharatEasy mobile Super app. Vakrangee Kendra business is now a pure retail centric consumer facing an asset-light franchisee-based model. Today, we have emerged as the Go to Market Platform for the rural India for our various business verticals including the new-edge FinTech and digital platform. We are building one of the India's largest last mile distribution platform and emerging as the physical plus digital ecosystem with a Pan India presence. Today, we have more than 21,003 active transacting and newly onboarded outlet spread across 32 states
← All transcriptsVAKRANGEE stock page →