Vakrangee Limited · NSE:VAKRANGEE
Vakrangee — Q1 FY2017-18 Earnings Presentation
49 slides from Vakrangee's earnings presentation, Jul 31, 2017
Slide 1: Q1 FY2017-18 Results Update & Investor Presentation
We Provide the Last Mile Connectivity Vakrangee Limited Q1 FY2017-18 Results Update & Investor Presentation July 31, 2017
Slide 2: Disclaimer
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 organ
Slide 3: Table of Contents
Table of Contents Our Vision 04 Q1 FY2017-18 Results Update 08 Dividend Pay-Out Policy 15 Financial Overview & Shareholding Structure 17 Current Rollout Status 19 IOC – Strategic Tie Up 20 Company Overview 23 Vakrangee Kendra – Business Overview 26 E-Governance Projects 38 Direct
Slide 4: Our Vision
Our Vision “Vakrangee aims to be the most trustworthy Physical as well as Online convenience-store across India. We promise to give every Indian, their rightful access to a wide range of products and services, that are fairly priced and of high quality. We will keep expanding this network, until we
Slide 5: Our 2020 Targets
Our 2020 Targets • We are a Technology-driven company, focussing on creating India’s largest network of last-mile retail points-of- sale. • Our aim is to potentially enable every Indian to seamlessly benefit from Financial Inclusion, Social Inclusion, Digital India, Skill Development , Employment ,
Slide 6: Update on Expansion Plan
Update on Expansion Plan Executed Till FY2016 FY2017 FY2018 FY2019 FY2020 Date – June 2017 Rural 15,000 25,000 35,000 45,000 50,000 26,737 Kendras Urban 5,000 10,000 15,000 20,000 25,000 10,951 Kendras Total 20,000 35,000 50,000 65,000 75,000 37,688 Achieved 20,677 35,206 - - - - Set to rollout the
Slide 7: Q1 FY2017-18 Results Update
Q1 FY2017-18 Results Update Vakrangee Limited
Slide 8: Q1 FY2017-18 Results Highlights
Q1 FY2017-18 Results Highlights In Rs Mn Q1 FY2017-18 (Consolidated) REVENUES EBITDA & EBITDA Margin PAT & PAT Margin 13,018.5 24.1% 13.2% 12.9% 20.4% 1681.4 9,175.4 2655.2 2214.7 1214.1 41.9% 19.9% 38.5% Q1 FY2016-17 Q1 FY2017-18 Q1 FY2016-17 Q1 FY2017-18 Q1 FY2016-17 Q1 FY2017-18 EBITDA (Rs. Mn) E
Slide 9: Q1 FY2017-18 Key Highlights
Q1 FY2017- 18 Key Highlights KEY OPERATIONAL UPDATES • Update on Expansion Plan – • Currently 37,688 outlets are completed & operational across 16+ states. • Update on New Tie-Ups & Alliances – • Financial Services – Alliance with DMI Finance Pvt. Ltd. for lead generator for offering loan products &
Slide 10: Update on New Initiatives: Launch of JioPhone
Update on New Initiatives: Launch of JioPhone • Pre-Booking Services - Vakrangee Kendra Outlets to start accepting the Pre-Bookings of JioPhone from 24th August 2017 onwards. • Delivery & Collection Point - Vakrangee Kendra Outlets to act as delivery & Collection point for the ordered handsets. • SI
Slide 11: Board Approval for Feasibility Study on Vakrangee Prime & Master Franchisee Model
Board Approval for Feasibility Study on: Vakrangee Prime & Master Franchisee Model NEW STORE FORMAT – VAKRANGEE KENDRA PRIME • Board has approved the Proposed Feasibility Study on a new store Format – Vakrangee Kendra PRIME • Some of the Key Differentiators to be studied – • Primarily targeting Urba
Slide 12: Strong Corporate Governance
Strong Corporate Governance NEW STATUTORY • The Board has already considered and approved the appointment of Price Waterhouse & Co. AUDITOR – BIG 4 Chartered Accountants LLP (PWC) as New Statutory Auditor on rotation of the existing auditor ACCOUNTING FIRM i.e. S.K.Patodia & Associates, Chartered Ac
Slide 13: Business-Wise Vertical Analysis (Standalone)
Q1 FY2017-18 Results – Business - Wise Vertical Analysis (Standalone) Q1 FY2017-18 Q1 FY2016-17 FY2016-17 FY2015-16* Particulars YoY YoY (Rs Mn) % of % of % % of % of % Total Total Total Total Total Revenues 12882.3 100.0 9116.4 100.0 41.3 39489.5 100.0 31686.1 100.0 24.6 Vakrangee Kendra 9083.2 70.
Slide 14: Consolidated Financial Statements
Consolidated Financial Statements Key Profit & Loss Statement Items Particulars (Rs. Mn.) Q1 FY2017-18 Q1 FY2016-17 YoY % FY2016-17 FY2015-16 YoY % Total Income from Operations 13,018.5 9,175.4 41.9 40,004.6 31,907.4 25.4 Total Expenses (Excluding Depreciation & 10,391.6 6,968.0 49.1 30,544.5 23,699
Slide 15: Dividend Pay-Out Policy
Dividend Pay-Out Policy DIVIDEND PAY-OUT POLICY • FROM FY2015-16 ONWARDS, THE BOARD HAS APPROVED TO MAINTAIN A DIVIDEND PAY-OUT IN THE RANGE OF 15%-25% OF PROFITS AFTER TAX (PAT) ON CONSOLIDATED FINANCIALS. RATIONAL FOR DIVIDEND PAYOUT RANGE: • The company stands committed to create sustainable shar
Slide 16: Financial Overview & Shareholding Structure
Financial Overview & Shareholding Structure Vakrangee Limited
Slide 17: Financial Overview & Shareholding Structure
Financial Overview & Shareholding Structure Last 3 Year Financials As on 28.7.17 (BSE) 32.4% 29.2% 28.3% Market cap (Rs. Mn) 2,40,453.48 26.2% 25.9% 23.8% Price (Rs.) 454.20 27,805 31,907 40,005 No. of shares outstanding (Mn) 529.40 FY15 FY16 FY17 Face Value (Rs.) 1.00 Revenues (Rs. Mn) EBITDA Margi
Slide 18: Current Rollout Status
Current Rollout Status Vakrangee Limited
Slide 19: Vakrangee Kendra: Rollout Status as on June 30, 2017
Vakrangee Kendra: Rollout Status as on June 30, 2017 States Rural Branches Urban Branches Total RURAL BRANCHES Rajasthan 10228 3371 13599 Uttar Pradesh 7713 3682 11395 26,737 Maharashtra 7102 2466 9568 Madhya Pradesh 547 336 883 16,104 Gujarat 229 255 484 66.0% Bihar 383 101 484 Haryana 95 194 289 P
Slide 20: Strategic Tie Up with Indian Oil Corporation
Vakrangee Kendra: STRATEGIC TIE UP WITH INDIAN OIL CORPORATION LIMITED FOR PAN INDIA • Strategic tie-up with Indian Oil Corporation Limited (IOC), India's largest commercial enterprise for setting up Vakrangee Kendra at its retail outlets (distribution network). • To set up Vakrangee Kendra in more
Slide 21: Launch of Vakrangee Kendra at Indian Oil Corporation
Vakrangee Kendra: LAUNCH OF VAKRANGEE KENDRA AT INDIAN OIL CORPORATION • Vakrangee Kendra shall be set up in all IOC Filling/Gas station located across India. • 200+ Vakrangee Kendra outlets are operational in the state of Maharashtra, Rajasthan, Uttar Pradesh, Gujarat, Madhya Pradesh, Orissa, Jhark
Slide 22: Company Overview
Company Overview Vakrangee Limited 22
Slide 23: Business Evolution & Future Transformation
Business Evolution & Future Transformation BUSINESS EVOLUTION (E-GOVERNANCE) BUSINESS TRANSFORMATION (VAKRANGEE KENDRA) 2013 Financial Inclusion Project – MoF & RBI 1990 Company Incorporation 1993 Computerisation of Central Election Commission 2014 WLA License – RBI 2005 MCA 21 Project - Ministry of
Slide 24: Our Businesses
Our Businesses E-GOVERNANCE VAKRANGEE KENDRA Systems Integrator & End-to-End Banking (Business Correspondent) & ATM, Insurance, Services Provider E-Governance, E-Commerce & Logistics • More than 20 years of consistent • Setup & manage 75,000 Vakrangee Kendra Outlets and covering the presence in 100%
Slide 25: Vakrangee Kendra – Business Overview
Vakrangee Kendra – Business Overview Vakrangee Limited 25
Slide 26: Vakrangee Kendra: Scope of Services
Vakrangee Kendra: Scope of Services Technology Intensive Retail Distribution Platform for last mile touch points delivering services across Banking & ATM, Insurance, e-Governance, e-Commerce and Logistic services to domains on a real-time basis to potential 250 mn customers across underserved rural
Slide 27: Key Business Alliances – Strong Reputed Partners
Vakrangee Kendra: Key Business Alliances – Strong Reputed Partners BANKING & FINANCIAL SERVICES E-GOVERNANCE INSURANCE E-COMMERCE LOGISTICS Vakrangee Limited 27
Slide 28: Vakrangee Kendra: Business Model
Vakrangee Kendra: Business Model EVOLVED BC MODEL BENEFITS • All the Vakrangee Kendras operate on FRANCHISEE MODEL. Exclusive Brick & Mortar BC per Sub Service • Franchisee manages day-to-day operations. Area (SSA) • All operational costs are borne by the Franchisee. OPERATING Real-time & Interopera
Slide 29: Vakrangee Kendra: Technology Setup
Vakrangee Kendra: Technology Setup SERVICES PROVIDED THROUGH REAL TIME INTEGRATION WITH PARTNER SYSTEMS BANK – CORE ALL PARTNER SYSTEMS – BANKING SERVER E-COMMERCE, E-GOVERNANCE, INSURANCE & LOGISTICS Customer PASS Vakrangee Internet THROUGH Kendra Connectivity SERVER WALLETS TO BE MAINTAINED FOR RE
Slide 30: Risk-Free Banking by Pre-Paid Deposit in the Settlement Account
Vakrangee Kendra: Risk-Free Banking by Pre-Paid Deposit in the Settlement Account REAL-TIME SETTLEMENT WITHOUT ANY RECONCILIATION ERROR RISK AND CASH MISAPPROPRIATION RISK • Each Vakrangee Kendra Franchisee is required to maintain a current settlement account with the parent bank. • This current set
Slide 31: White Label ATM – Opportunity
Vakrangee Kendra: White Label ATM – OPPORTUNITY 2,825 ATM per Mn Population • Low Penetration = Huge opportunity for WLAs 2,048 • As on Oct 2016, India had ~ 230,000 ATMs. It is expected 1,854 to cross 350,000 ATMs by 2017 in India. 1,660 1,278 1,186 • RBI WLA license to Vakrangee – 634 • Set up & M
Slide 32: Vakrangee Kendra – Logistics
Vakrangee Kendra – Logistics Vakrangee Limited 32
Slide 33: Logistics – Why Vakrangee?
Logistics – Why Vakrangee ? FY2017 – CURRENT PRESENCE NO OF OUTLETS NO OF STATES NO OF DISTRICTS NO OF POSTAL CODES 37,600+ 16+ 370+ 5,200+ FY2020 – TARGETED PRESENCE NO OF OUTLETS NO OF STATES NO OF DISTRICTS NO OF POSTAL CODES 75,000 PAN INDIA 650+ 19,000+ KEY CHALLENGES FOR CURRENT PLAYERS - • Cu
Slide 34: Logistics – Our Business Model
Logistics – Our Business Model VAKRANGEE LOGISTICS Front-end Point for Courier Last Mile Reverse Logistics Last Mile Delivery Services Booking Services Services • Courier Market-Place - leveraging • Market-Place Model for E- 35,000+ Kendra presence to • Market-Place Model for Reverse commerce Delive
Slide 35: Logistics – Service Offering
Logistics – Service Offering Vakrangee Kendra – Postal code “1” Pilot Rollout Operation - • Started with 19 Postal codes and currently operating in 69 Postal codes • Delivered and Picked up more than 2,20,000 packages • Courier Booking Services Activated across 16 States and 852 postal codes Logisti
Slide 36: Well Established Last Mile Infrastructure
Vakrangee Kendra: Well Established Last Mile Infrastructure Independent Project Management Consultant Corporate PMO Head Quarters State PMO State Office Division Office 1 Division Office 2 Division Office N District Office 1 District Office 2 District Office N Block Office 1 Block Office 2 Block Off
Slide 37: E-Governance Projects
E-Governance Projects Vakrangee Limited
Slide 38: E-Governance Projects
E-Governance Projects Vakrangee undertakes only Mission Mode Projects under the National E-Governance Plan (NEGP) which continue to be implemented regardless of the changing political parties and bureaucrats. There is strict compliance in the NEGP project tendering process, which is governed by the
Slide 39: Directors & Leadership Team
Directors & Leadership Team Vakrangee Limited
Slide 40: Independent / Nominee Directors on the Board
Independent / Nominee Directors on the Board Strong Board of Directors RAMESH JOSHI • Has about 40 years of business experience in the banking industry. Non Executive • Has worked with RBI for over 3 decades and a former ED of SEBI Independent • Holds a Bachelor’s degree in Arts from the University
Slide 41: Leadership Team
Leadership Team STRONG MANAGEMENT TEAM IN PLACE TO DRIVE NEXT PHASE OF GROWTH ACROSS ALL BUSINESSES • Has about 25+ years of business experience. Main functions and areas of responsibilities in the Company include policy formulation and decision making. DINESH • Has received a memento from the forme
Slide 42: Annexure
Vakrangee Annexure
Slide 43: Financial Inclusion
Financial Inclusion Evolution of Financial Inclusion Models in India ▪ RBI sets up Khan Commission to look into financial Mobile BC Fixed BC 2004 inclusion ▪ Brick & Motor Bank branch opened in each 2005 Gram Panchayat by BC ▪ RBI introduces “No Frill” accounts concept ▪ BCs visited villages ▪ 1 bra
Slide 44: Financial Inclusion: RBI's Recent Initiative
Financial Inclusion RBI’s Recent Initiative Uttar Pradesh North Eastern States SREI SAHAJ - @0.28% RFP cancelled (Part 1) & FINO -@ J&K 0.35% (Part 2) HIMACHAL Bihar PRADESH FINO - @0.05% (Part 1) Rajasthan and Delhi PUNJAB UTTARAKHAND &@0.11% (Part 2) Vakrangee - @ 0.37% HARYANA ARUNACHAL PRADESH W
Slide 45: Franchisee On-Boarding Process
Vakrangee Kendra: Franchisee On-Boarding Process 3 - 6 MONTHS Compliance Exams to be cleared and Vakrangee On-boarding Franchisee On-boarding Go Live Franchisee background check - • Indian Institute of Banking & Finance (IIBF – For Financial • Campaigning to • Dedicated Settlement • Deployment of IT
Slide 46: Awards and Certifications
Awards and Certifications Awards and Accolades Certifications • Selected in the Super 50 Companies – Forbes India 2017 • Selected in the Top 50 BSE 500 Companies by Growth in M-Cap - Forbes India 2017 • MSCI ESG Research Inc. has scored Vakrangee 10 out of 10 for the research conducted for the asses
Slide 47: Vakrangee Kendra
Vakrangee Kendra Vakrangee Limited 47
Slide 48: Vakrangee Kendra: Urban and Rural Kendra
Vakrangee Kendra Urban Kendra Rural Kendra Vakrangee Limited 48
Slide 49: Thank You
Thank You The Presentation is available on http://vakrangee.in/company-downloads/corporate-profile.pdf