Vakrangee Limited has informed the Exchange about Investor Presentation
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July 26, 2021
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Department of Corporate Relationship
Corporate Relationship Department
BSE Ltd.
National Stock Exchange of India Ltd.
Phiroze Jeejeebhoy Towers,
Exchange Plaza, Bandra Kurla Complex,
Dalal Street, Fort,
Mumbai - 400001
Dear Sir/Madam,
Bandra (East), Mumbai - 400 051
Sub.: Result Update Presentation - 01 FY2021-22
Ref.: Scrip Code - 511431/VAKRANGEE
With reference to the captioned subject and pursuant to Regulation 30 of SEBI (listing Obligations
and Disclosure Requirements) Regu lations, 2015, please find attached herewith Result Update
Presentation 01 FY2021-22 considered in the Board Meeting of the Company held today on July 26,
2021.
Kindly take the above on your record.
Thanking you
Yours fa it hfully,
For Vakrangee Limited
(J11Y\ 'b"'-~
Jay Bhansali
Company Secretary
(Mem. No.: A48251)
Encl .: A/ a
THE ASSISTED DIGITAL CONVENIENCE STORE
VAKRANGEE LIMITED RESULTS UPDATE PRESENTATION – Q1 FY2021-22
July 26, 2021
DISCLAIMER
This presentation has been prepared by Vakrangee Limited (“Vakrangee” or “VL” or the “Company”) solely for your information and for your use and may not be taken away, reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organization or firm) or published in whole or in part, for any purpose. By attending this presentation, you are agreeing to be bound by the foregoing restrictions and to maintain absolute confidentiality regarding the information disclosed in these materials.
The information contained in this presentation does not constitute or form any part of any offer, invitation or recommendation to purchase or subscribe for any securities in any jurisdiction, and neither the issue of the information nor anything contained herein shall form the basis of, or be relied upon in connection with, any contract or commitment on the part of any person to proceed with any transaction. The information contained in these materials has not been independently verified. No representation or warranty, express or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in these materials.
Any forward-looking statements in this presentation are subject to risks and uncertainties that could cause actual results to differ materially from those that may be inferred to being expressed in, or implied by, such statements. Such forward-looking statements are not indicative or guarantees of future performance. Any forward-looking statements, projections and industry data made by third parties included in this presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.
This presentation may not be all inclusive and may not contain all of the information that you may consider material. The information presented or contained in these materials is subject to change without notice and its accuracy is not guaranteed. Neither the Company nor any of its affiliates, advisers or representatives accepts liability whatsoever for any loss howsoever arising from any information presented or contained in these materials.
THIS PRESENTATION IS NOT AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES OR ELSEWHERE.
2
TABLE OF CONTENTS
Results Performance Update
Strategy 2.0: Our next 5 year growth plan
Launch of Mobile Super App Update
Company Overview
Update on Awards & Recognition
Annexure : Kendra Evolution
04
10
16
20
28
30
3
RESULTS PERFORMANCE UPDATE
Key Highlights – Q1 FY2021-22 (Y-o-Y Basis)
REVENUE FROM OPERATIONS
In Rs Mn
1,540.2
EBITDA
PROFIT AFTER TAX (PAT)
340.8
233.3
678.5
204.1
118.9
127.0%
67.0%
96.2%
Q1FY2020-21
Q1 FY2021-22
Q1 FY2020-21
Q1 FY2021-22
Q1 FY2020-21
Q1 FY2021-22
Key Highlights – Q1 FY2021-22 (Q-o-Q Basis)
REVENUE FROM OPERATIONS
In Rs Mn
EBITDA
1,540.2
296.6
340.8
1,018.5
PROFIT AFTER TAX (PAT) 233.3
207.9
51.2%
14.9%
12.2%
Q4 FY2020-21
Q1 FY2021-22
Q4 FY2020-21
Q1 FY2021-22
Q4 FY2020-21
Q1 FY2021-22
4
RESULTS PERFORMANCE UPDATE
REVENUE FROM OPERATIONS
PROFIT AFTER TAX (PAT)
In Rs Mn
1540.2
233.3
207.9
678.5
702.3
743.6
1018.5
168.0
118.9
133.1
Q1FY2020-21 Q2FY2020-21 Q3FY2020-21 Q4FY2020-21 Q1FY2021-22
Q1FY2020-21 Q2FY2020-21 Q3FY2020-21 Q4FY2020-21 Q1FY2021-22
Returning to Pre-Covid Growth Path, Witnessing Strong Business Growth Momentum !!
We have Reached an Inflection Point, we are now well poised for strong Financial & Operational growth over the coming quarters and future years.
5
PERFORMANCE OUTLOOK UPDATE
Sale Revenue & Profitability Growth : Positive • Well poised for strong Financial & Operational growth. Return to normalcy on the business front has been
progressing well as E-commerce, Online Healthcare and other services have become operational Strong Operating Leverage to result into significant improvement in profitability. Quarterly Throughput crossed Rs. 107+ Billion. Quarterly No. of Transaction crossed 27.0 Million Implemented Process automation & Technology Initiatives resulting into enhanced profitability
• • •
Substantial Increase in Trust & Awareness Enhanced visibility and Brand Awareness during Nationwide Lockdown
Business Opportunity on Growth Side: Positive • • • More than 1,50,000+ Applications in place •
Company is empanelling Global consultants to understand the Online market landscape and evaluate the opportunity size for BharatEasy Super App and to strategize the best ways to unlock value for all the stakeholders.
Planned Target : Return to Normalcy & Strong Growth •
Outlet expansion to 25,000 NextGen outlets by FY2022 and to 75,000 NextGen outlets by FY2026
Dividend Recommendation : Dividend recommended of Rs.0.10 Per Equity Share having Face Value of Rs.1 each. Company is focusing on key growth initiatives of Strategy 2.0 scaling to 75,000 kendras as well as Digital strategy for enabling O2O platform through Bharat Easy Mobile Super App. Therefore the Board is of the view that the company has strong growth avenues in place and therefore its in best interest of its shareholders that the maximum amount of free cash flows is re-invested in the business for future growth
6
VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE
PERFORMANCE UPDATE FOR QUARTER ENDED JUNE, 2021
~Rs. 107.0 Bn
~27.0 Mn
Quarterly Throughput on Vakrangee Platform – Q1 FY22 Transaction Value
Quarterly No. of Transactions on Vakrangee Platform – Q1 FY22
11,900+
~US$5.8 Bn
No. of NextGen Outlets currently operational
Annual Run Rate Throughput – Transaction Value - basis Current No. of operational Outlets
Our Aim to become India’s Largest Rural Consumption Platform
7
VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE
Q1 FY2021-22 - GMV / THROUGHPUT CONTRIBUTION (RS. MN.)
*
E-Commerce
1,349
25,280
ATM
BFSI
Margin Profile %
2 - 15%
Rs. 15/ Fin Txn
80,373
0.25 - 0.40%
•
•
Banking and ATM services witnessed normalization as there was Government subsidy distribution during the Covid period.
E-Commerce, Online Healthcare and Other services have now become operational and have witnessed QoQ growth and is improving.
* E-Commerce includes online Shopping, Online Pharmacy, Travel Ticket Booking, Logistics & other Services
8
CONSOLIDATED FINANCIAL STATEMENTS
Key Profit & Loss Statement Items
Particulars (Rs. Mn.)
Q1 FY2021-22
Q1 FY2020-21
YoY%
Q4 FY2020-21
QoQ%
FY2020-21
Revenue from Operations Total Expenses
EBIDTA Profit before Tax (PBT) Tax Expenses Profit after Tax (PAT) Earnings per Share (EPS Basic)
Particulars (Rs. Mn.) Net Worth Share Capital
Other Equity
Total Debt Long Term Debt
Short Term Debt
Other Non-Current Liabilities
1,540.2 1,248.9
340.8 305.4 72.2 233.3 0.22
678.5 684.1
204.1 165.3 46.4 118.9 0.11
127.0 82.6
67.0 84.8 55.6 96.2 100.0
1,018.5 919.4
296.6 275.6 67.7 207.9 0.20
51.2 35.8
14.9 10.8 6.6 12.2 10.0
Key Balance Sheet Items
FY2020-21 26,640.8
1,059.4
25,581.4
FY2019-20 26,373.0
1,059.4
25,313.6
0.0 0.0
0.0
44.4
0.0 0.0
0.0
66.8
Particulars (Rs. Mn.) Fixed Assets Other Non-Current Assets Inventory Trade Receivables Cash & Cash Equivalents Other Current Assets Less: Trade Payables Less: Other Current Liabilities Net Current Assets Total Application of Funds
FY2020-21 1605.1 6029.9 49.7 11203.1 212.8 9655.7 341.4 1729.7 19050.2 26685.2
3,142.9 3,011.3
976.2 828.2 200.3 627.9 0.59
FY2019-20 1,539.9 6,340.4 78.1 13,688.4 1,785.1 4,757.4 690.8 1,058.7 18,481.4 26,439.8
Total Sources of Funds
26,685.2
26,439.8
Fiscal Year (FY) is 12 months ending March
9
STRATEGY 2.0: VAKRANGEE’S PHYSICAL NETWORK PLATFORM – OUR NEXT 5 YEAR GROWTH PLAN
10
11
12
FOCUSSED TO BUILD PAN-INDIA PRESENCE COVERING 100% POSTAL CODES
FY 2025-26
- 75,000+ Outlets - 36 States / UTs - 740 + Districts
- 19,000 + Postal codes - ~70% Tier V & VI
Q1 FY 2021-22
- 11,900+ Outlets - 27 States / UTs - 520+ Districts - 4,620+ Postal codes - 70% Tier V & VI
With Exclusive Branded Format Stores, Consistent Service Experience & Strong Brand Recall
13
VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE
VISIBILITY ON OPENING OF NEXTGEN OUTLETS
Total Number of Operational Outlets : 11,900+
Total Number of Formal Expression of Interest : 1,50,000+
CLEAR VISIBILITY OF 25,000 NEXTGEN OUTLETS BEFORE MARCH 2022
14
SUSTAINABILITY ESG PERFORMANCE UPDATE
Global recognition reflects company’s commitment to further enhance its corporate governance and transparency standards. Company has achieved Global recognition across various platforms for its superior ESG performance and long term Business sustainability.
Company has been successful in benchmarking its performance on a wide range of industry specific economic, environmental, governance and social criteria that are relevant to the growing focus on Business sustainability and financially relevant to the corporate success.
Sr. No.
ESG Assessment & Rating platform
Vakrangee Ranking
1
2
3
4
5
Sustainalytics ESG Risk Assessment Rating
Globally ranked No.1 in the Sustainalytics ESG Risk rating rankings out of the 816 companies assessed in the Software and Services industry across worldwide
CDP Score - Climate Change 2020
Achieved “B” Score from CDP for Environmental Practices, Better than the Industry’s Average (Asia regional average of D, Global Average of C)
CDP Score - Supplier Engagement Rating 2020 SAM Corporate Sustainability Assessment (CSA) – S&P Global
Bloomberg Gender Equality Index (BGEI)
Achieved “A-” Score from CDP for Suppliers Engagement, Better than the Industry’s Average (Asia regional average of B-, Global Average of C)
Globally ranked No. 13 Company in the global industry ranking and ranked No. 9 in the Corporate Governance global industry raking based on RobecoSAM – S&P Global ESG Score.
Included in the Bloomberg’s 2021 Gender-Equality Index (GEI). The 2021 Bloomberg GEI comprises of 380 companies across the world with a combined market capitalization of USD14 Trillion Headquartered in 44 countries and Regions across 11 sectors.
15
LAUNCH OF MOBILE SUPER APP UPDATE
16
LAUNCH OF MOBILE SUPER APP UPDATE
•
•
•
•
•
Vakrangee has recently launched an online digital platform to enable seamless services for the consumer at the comfort of their homes. Through this, company has evolved into the unique O2O (Online to Offline) platform, whereby there is Assistance available through the Physical Kendra network along with Digital Online Services
The company has Initiated this Unique Hybrid proposition with launch of first Digital service of Total Healthcare services The company plans to make many more existing Vakrangee services live through this platform.
The Company is now launching an All in one : “BharatEasy” Mobile Super App based business platform. (Beta Trial Version has been launched )
By downloading a single Vakrangee’s BharatEasy Super App mobile application, our customers would get access to a wide array of Products and Services which would significantly reduce their requirement to switch between multiple apps. This would lead to superior customer experience and convenience for the customer.
The Mobile super app platform would be offering various consumer products and services under one umbrella. Consumers would use it every day because our app would offer a seamless, multi-service, integrated, contextualized and efficient experience.
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BUSINESS MODEL : OUR UNIQUE OFFERING
18
BUSINESS MODEL : UNIQUE COMPETITIVE ADVANTAGES
19
COMPANY OVERVIEW
20
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES
Vakrangee Kendra offers a broad spectrum of services across different sectors to offer a “One Stop Shop” solution for its customers
BFSI & ATM SERVICES :
ASSISTED E-COMMERCE :
ATM
Banking and Financial Services
Insurance Services
Assisted Online Shopping and Online Pharmacy
Bill Payments and Recharge
Tele-Medicine : Consultation with Expert Doctors
21
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES
BFSI & ATM SERVICES
(White Label ATM License)
•
•
ATM Cash Withdrawal Non-Financial Transactions
• Money Transfer •
Lead Generations of Personal / Home / Business Loans
• • •
• •
•
Life Insurance General Insurance Health Insurance
Account Opening Cash Withdrawal/ Deposit services Other Banking services
22
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES
ASSISTED E-COMMERCE SERVICES
•
•
Online Shopping of Goods Online Shopping of Jewellery
(Only for Rajasthan)
•
•
Telemedicine services Online Shopping of Medicines • Mobile/DTH Recharge Bill Payments E-Mitra services in Rajasthan
• •
•
• •
Train Ticket Booking Bus Ticket Booking Flight/Hotel Ticket Booking
•
Online Education Services
23
FORMATS OF NEXTGEN VAKRANGEE KENDRA
NEXTGEN VAKRANGEE KENDRA: GOLD, SILVER AND BRONZE MODEL
Update on Nextgen Vakrangee Kendra Model:- • As the Bouquet of services have increased over the last few years , the viability of the kendra has
•
increased on a standalone basis resulting into an Exclusive store format. Key Mandatory features have been added in the Nextgen Model - CCTV, Digital Signage & Pinpad device for all kind of payment mode.
• Nextgen Vakrangee model includes standardized Look & Feel and Branding as designed by
renowned Store Brand consultants Lewis & Hickey.
Gold Kendra
Silver Kendra
Bronze Kendra
Minimum area of 300 sq. ft. Four counters, owner desk and ATM
Minimum area of 100 sq. ft. Two counters and ATM
Minimum area of 65 sq. ft. Type 1: One counter and ATM Type 2: One Counter w/o ATM Type 3: Only ATM
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KEY FEATURES – NEXTGEN VAKRANGEE KENDRA
KEY FEATURES
STORE EXCLUSIVITY & CONSISTENT BRANDING
ATM IN OUTLET
CENTRALIZED MONITORING SYSTEM
DIGITAL ADVERTISING
PIN-PAD DEVICES
•
• •
• • •
• • •
•
• •
•
•
Exclusive store model with same service level and same Customer experience Standardized layout & design by L&H (Lewis & Hickey) Uniform and Consistent Branding for Higher brand recall and visibility
ATM at store and located within the store Potential to enhance the footfalls significantly Additional stream of revenues for both the Franchisee and the company
Centralized CCTV system Better Security at the store Full compliance with RBI guidelines to maintain more than 90 days video recording back up
Digital Signage to enable centrally monitored advertisement campaigns To enhance the interaction between Customers and Partners Focus to initiate advertising revenue
To enable various kinds of payment modes at any Vakrangee Kendra Integration in process to start accepting RuPay / Debit / Credit card payments
25
NEXTGEN VAKRANGEE KENDRA MODEL
26
CASE STUDIES : NEXTGEN TOP PERFORMERS
Franchisee -Nand Lal Swami from a Tier-5 location of Rajasthan have Earned `76,186 in just month from BFSI Services
Franchisee -SHASHI JAIN from a Tier- 3 location of Rajasthan have Earned `1,45,460 in just month from ATM Services
Number of Accounts Opened - 36
Total Transaction Value - `2,55,27,850
Number of Financial Transaction - 11,591
Total Transaction Value – `96,78,600
Franchisee -DEEPALI ANDHARE from a Tier-1 location of Maharashtra have Earned `41,262 in one month from BFSI-DMT Services
Number of Transactions - 2,491
Total Transaction Value -
`66,30,608
Franchisee -KANHAIYA LAL from a Tier-3 location of Rajasthan have Earned `27,300 from vHealth by Aetna Services
Number of Plans Sold - 182
Total Transaction Value -
`1,82,000
27
27
UPDATE ON AWARDS & RECOGNITION
28
AWARDS & RECOGNITION
Vakrangee makes history by setting
GUINNESS WORLD RECORDSTM title for the Most stores launched simultaneously on 14th January 2019
Launches 1107 Nextgen Vakrangee kendra stores across the country at 11.07 Am on the same day
This is the highest number of stores opened anywhere in the world
Vakrangee has been awarded as the best ‘FINANCIAL SERVICES RETAILER OF THE YEAR’ at the Indian Retail Awards 2019.
Vakrangee has been ranked amongst Top 100 Franchise Opportunities for the year 2021 by the Franchisee India in the Franchising World’s Annual Survey.
The objective of the Indian Retail
Awards is to recognize the Retailers who are closing the gap between operational reality and consumer expectations with great retailing practices.
Franchise 100 represents the Top-100 best performing franchise brands and opportunities by analyzing their brand strength, franchise growth, size of system, costs and fee as well as franchise friendliness.
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ANNEXURE : KENDRA EVOLUTION
30
KENDRA EVOLUTION
PHASE 1: INITIALLY AN E- GOVERNANCE PLAYER
PHASE 2: EVOLVED TO A BANKING BC POINT MODEL
PHASE 3: EVOLVED TO MULTI SPECIALITY STORE MODEL
PHASE 4: EXCLUSIVE NEXTGEN DIGITAL CONVENIENCE STORE
PHASE 1: CSC & E-MITRA MODEL
PHASE 2 : BANKING BC POINT MODEL
PHASE 3 : MULTI-SPECIALITY STORE MODEL
PHASE 4 : NEXTGEN KENDRA MODEL –DIGITAL CONVENIENCE STORE
OUTLETS WERE TERMED AS “COMMON SERVICE CENTRE - CSC” OR “E-MITRA KENDRA” :-
• NON-EXCLUSIVE STORE
MODEL
• SINGLE LINE OF SERVICE
PRIMARILY
• NO STANDARDIZED DESIGN LAYOUT & BRANDING . KIRANA STORE MODEL
COMPANY RECEIVED THE BC BANKING MANDATE AND STARTED BANKING SERVICES – • NON-EXCLUSIVE • DUAL LINE OF SERVICE - E- GOVERNENCE & BANKING SERVICES
• NO STANDARDIZED DESIGN ,
INITIATED STANDARD BRANDING IN TERMS OF BASIC SIGNAGE & HOARDINGS
EVOLVED INTO A MULTI SPECIALITY STORE MODEL :–
•
•
•
PLANNED AS AN EXCLUSIVE STORE MODEL
MULTI-LINE OF SERVICES – BANKING, E-GOVERNENCE, INSURANCE, E-COMMERCE & OPTIONAL ATM SERVICES
INITIATED STANDARD BRANDING IN STORE LAYOUT AS WELL AS SIGNAGE
EVOLUTION INTO AN EXCLUSIVE ASSISTED DIGITAL CONVENIENCE STORE MODEL –
• EXCLUSIVE STORE MODEL • MULTI-LINE OF SERVICES – STANDARDIZED LAYOUT & DESIGN BY L&H (LEWIS & HICKEY)
• STANDARD BRANDING IN
STORE DIGITAL SIGNAGE & CCTV MANDATORY
31 31
Thank You
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