Vakrangee Limited · NSE:VAKRANGEE
Vakrangee — Q3 FY2022-23 Earnings Presentation
35 slides from Vakrangee's earnings presentation, Feb 3, 2023
Slide 1: Cover letter to stock exchanges
Vakrangee Limited “Vakrangee Corporate House”, Plot No.93, Road No.16, M.I.D.C. Marol, Andheri (East), Mumbai - 400093. Maharashtra, W: www.vakrangee.in | L:+91 22 2850 3412/+91 22 6776 5100 F: +91 22 28502017 | CIN: L65990MH1990PLC056669`` February 03, 2023 To, Department of Corporate Relationship
Slide 2: Q3 FY2022-23 Results Update
THE ASSISTED DIGITAL CONVENIENCE STORE “GO TO MARKET PLATFORM” : BUILDING INDIA’S LARGEST LAST MILE DISTRIBUTION PLATFORM VAKRANGEE LIMITED Q3 FY2022-23 RESULTS UPDATE February 3, 2023
Slide 3: 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 4: Table of Contents
TABLE OF CONTENTS Results Performance Update 04 Demerger Update 11 Strategy Update 15 Company Overview 20 Update on Sustainability ESG Initiatives 29 Annexure : Kendra Evolution 32 3
Slide 5: Results Performance Update
RESULTS PERFORMANCE UPDATE 4
Slide 6: Key Highlights – Q3 FY2022-23 (Q-o-Q Basis)
RESULTS PERFORMANCE UPDATE Key Highlights – Q3 FY2022-23 (Q-o-Q Basis) REVENUE FROM OPERATIONS EBITDA & EBITDA MARGIN PROFIT AFTER TAX (PAT) In Rs Mn In Rs Mn In Rs Mn 110.0 2507.3 4.7% 48.2 2340.7 52.4 2.1% 7.1% -92.7% 3.5 Q2 FY2022-23 Q3 FY2022-23 Q2 FY2022-23 Q3 FY2022-23 Q2 FY2022-23 Q3 FY2022-2
Slide 7: Launch of NextGen Vakrangee Kendra 2.0: New Look & Feel
Launch of NextGen Vakrangee Kendra 2.0 : New Look & Feel Layout Plan : Min Area required 65-80 sq. ft. Look & Feel : Bank BC Point & Vakangee Kendra Outlet Key Features : • Exclusive store model has Higher Earning Potential and • Exclusive Dedicated Outlet for Banking Store Higher Success BC point s
Slide 8: Vakrangee Kendra - Performance Update
VAKRANGEE KENDRA - PERFORMANCE UPDATE VAKRANGEE : PHYSICAL + DIGITAL ECO-SYSTEM “GO TO MARKET PLATFORM” : BUILDING INDIA’S LARGEST LAST MILE DISTRIBUTION PLATFORM PERFORMANCE UPDATE FOR Q3 FY2022-23 Total No. of Outlets Presence in States/UTs Presence in districts Presence in Tier IV & VI Our Presen
Slide 9: Gross Transaction Value Contribution
VAKRANGEE KENDRA – PERFORMANCE UPDATE GROSS TRANSACTION VALUE CONTRIBUTION (RS. MN.) Margin Profile % * 1,793 E-Commerce 2 - 15% 2,398 30,775 Rs. 17/ Fin Txn ATM 31,236 92,940 BFSI 0.25 - 0.40% 97,045 Q3 FY2021-22 Q3 FY2022-23 • BFSI and ATM services witnessed stable QoQ as well as YoY growth • E-Co
Slide 10: Consolidated Financial Statements
CONSOLIDATED FINANCIAL STATEMENTS Key Profit & Loss Statement Items Particulars (Rs. Mn.) Q3 FY2022-23 Q2 FY2022-23 YoY% 9M FY2022-23 Revenue from Operations 2,507.3 2,340.7 7.1% 7,108.3 Total Expenses 2,498.1 2,286.3 9.3% 6,998.4 EBIDTA 52.4 110.0 (52.4%) 266.7 Profit before Tax (PBT) 12.3 68.1 (81
Slide 11: Case Studies: Top Performer Franchisees
CASE STUDIES : TOP PERFORMER FRANCHISEES Franchisee – SAVITA GANESH HAJARE SAVITA from a Tier-6 location of Ahmednagar, Total Transaction Value - ` GANESH Rajasthan have Earned `1,64,286 in just `1,15,81,520 HAJARE month from BFSI – Banking Services Franchisee – PREM SHANKAR JAT from a Number of Fin
Slide 12: Demerger Update
Vakrangee J ’ DEMERGER UPDATE
Slide 13: Demerger Update
DEMERGER UPDATE BOARD DECISION ON DEMERGER: VAKRANGEE TO RESTRUCTURE ITS BUSINESS FOR SHAREHOLDER VALUE CREATION TO DEMERGE ITS NON CORE BUSINESS OF E-GOVERNANCE AND IT/ITES AS A SEPARATE ENTITY TO BE LISTED • Demerger to unlock the potential of the Core Vakrangee kendra Business in the current List
Slide 14: Proposed Demerger Structure
PROPOSED DEMERGER STRUCTURE PRE-DEMERGER 1 2 POST- VL E-GOVERNANCE & IT VAKRANGEE LIMITED – SOLUTIONS BUSINESS DEMERGER CURRENT LISTED ENTITY DIVISION – TO BE LISTED ARRANGEMENT TO INCLUDE :- TO INCLUDE :- • VAKRANGEE KENDRA POST- • E-GOVERNANCE BUSINESS BUSINESS (PHYSICAL DEMERGER • IT/ITES BUSINES
Slide 15: Vakrangee Kendra Business – Post Demerger
VAKRANGEE KENDRA BUSINESS – POST DEMERGER POST DEMERGER : VAKRANGEE LIMITED TO EMERGE AS PURE RETAIL CONSUMER CENTRIC BUSINESS RETAIL CONSUMER STRONG RURAL BRAND UNIQUE PHYSICAL + CENTRIC BUSINESS PRESENCE DIGITAL PLATFORM SCALABLE FRANCHISEE DEBT FREE BALANCE ASSET LIGHT MODEL LED MODEL SHEET HIGH
Slide 16: Strategy Update
Vakrangee J ’ STRATEGY UPDATE
Slide 17: Launch of Master Franchisee Initiatives
LAUNCH OF MASTER FRANCHISEE INITIATIVES • LAUNCH OF NEW ATTRACTIVE MASTER FRANCHISEE SCHEME : A UNIQUE LIFETIME EARNING OPPORTUNITY WHEREBY THE MASTER FRANCHISEE IS ELIGIBLE TO EARN A % OF ACTIVE FRANCHISEE’S EARNINGS ON AN ON-GOING PERPETUAL BASIS • DISTRICT LEVEL MASTER FRANCHISEE BEING APPOINTED.
Slide 18: Update on Master Franchisee Initiatives
UPDATE ON MASTER FRANCHISEE INITIATIVES • APPOINTED MASTER FRANCHISEES IN 113 DISTRICTS ACROSS 21 STATES ACROSS THE COUNTRY. Plan to achieve • MASTER FRANCHISEE TO PROVIDE ON-GROUND OPERATIONAL SUPPORT TO THE 100% District EXISTING FRANCHISEE OUTLETS AS WELL AS DRIVE NEW FRANCHISEE ACQUISITION. cove
Slide 19: Update on BharatEasy Mobile Super App
UPDATE ON BHARATEASY MOBILE SUPER APP • Vakrangee is launching 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
Slide 20: Business Model: Our Unique Offering
BUSINESS MODEL : OUR UNIQUE OFFERING Customer Strong Value Proposition • All in One Super App Platform • Access to Physical Store network - Trust & Comfort for Customers especially in Rural India Unique Convenience Features : Leveraging the Vakrangee Eco-System • Store Pick Up Facility • Pay at Stor
Slide 21: Company Overview
Vakrangee J ’ COMPANY OVERVIEW
Slide 22: Vakrangee Kendra – Scope of Services
VAKRANGEE KENDRA – SCOPE OF SERVICES Banking , ATM & Insurance Financial Services / Fintech E-Commerce / Online Travel Tele Medicine / Pharmacy PAN INDIA PRESENCE : • 82% IN TIER 4-6 LOCATIONS PHYSICAL + DIGITAL • 5,834 POSTAL CODES ECO-SYSTEM • 595 DISTRICTS “GO TO MARKET PLATFORM” : BUILDING INDIA
Slide 23: Vakrangee Kendra – Scope of Services: BFSI & ATM
VAKRANGEE KENDRA – SCOPE OF SERVICES BFSI & ATM SERVICES • ATM Cash Withdrawal • Non-Financial Transactions (White Label ATM License) • Opening of Online Demat & Trading Account • Money Transfer • Lead Generations of Personal / Business Loans • Pan Card Service • CIBIL Score service • Life Insurance
Slide 24: Vakrangee Kendra – Scope of Services: Assisted E-Commerce
VAKRANGEE KENDRA – SCOPE OF SERVICES ASSISTED E-COMMERCE SERVICES • Online Shopping of Goods (Available only on BharatEasy Mobile Super App) • Telemedicine services • Online Shopping of Medicines • Mobile/DTH Recharge • Bill Payments • E-Mitra services in Rajasthan (Only for Rajasthan) • Train Ticke
Slide 25: Formats of Vakrangee Kendra
FORMATS OF VAKRANGEE KENDRA VAKRANGEE KENDRA: WITH ATM, WITHOUT ATM AND ONLY ATM MODEL Update on 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. •
Slide 26: Vakrangee Kendra - Key Features
VAKRANGEE KENDRA - KEY FEATURES KEY FEATURES • Exclusive Banking BC Point Outlet STORE EXCLUSIVITY & • Exclusive Outlet for ATM and all other services • Standardized Customer experience with same service level CONSISTENT experience BRANDING • Uniform and Consistent Branding for Higher brand recall a
Slide 27: NextGen Vakrangee Kendra Model
NEXTGEN VAKRANGEE KENDRA MODEL 26
Slide 28: Huge Untapped Market: Overall Market Potential
HUGE UNTAPPED MARKET: OVERALL MARKET POTENTIAL POPULATION 1.35 BILLION POLLING STATIONS 1 MILLION TOTAL NO OF VILLAGES 6,63,027 TOTAL NO OF GRAM PANCHAYAT 2,55,623 TOTAL NO OF URBAN WARDS 88,711 TOTAL OUTLET POTENTIAL 3,44,334 27
Slide 29: Focussed to Build Pan-India Presence Covering 100% Postal Codes
FOCUSSED TO BUILD PAN-INDIA Within 18 Months PRESENCE COVERING 100% POSTAL CODES - 75,000+ Outlets - 19,000+ Postal codes - 36 States / UTs - ~70% Tier V & VI - 760 + Districts Q3 FY2022-23 - 24,887 Outlets - 32 States / UTs - 595 Districts With Exclusive Branded Format Stores, - 5,834 Postal codes
Slide 30: Update on Sustainability ESG Initiatives
UPDATE ON SUSTAINABILITY ESG INITIATIVES 29
Slide 31: Sustainability ESG Performance Update
SUSTAINABILITY ESG PERFORMANCE UPDATE VAKRANGEE ESG PERFORMANCE UPDATE VAKRANGEE RECOGNIZED AS A ESG VAKRANGEE EARNS BRONZE CLASS SPOT GLOBAL 50 TOP RATED COMPANY BY IN SUSTAINABILITY YEARBOOK 2022 BY SUSTAINALYTICS S&P GLOBAL • In 2022, Vakrangee has been recognized by • Vakrangee Limited has been
Slide 32: Key Initiatives: Sustainability Impact & ESG
KEY INITIATIVES : SUSTAINABILITY IMPACT & ESG Being Responsible • Being one of the largest franchisee-based, multi-service retail network, Vakrangee is focused on creating India’s extensive network of last-mile retail outlets at every & Social Conscious postal code in the country, enabling Indians t
Slide 33: Annexure: Kendra Evolution
ANNEXURE : KENDRA EVOLUTION 32
Slide 34: Kendra Evolution
KENDRA EVOLUTION PHASE 1: INITIALLY AN E- PHASE 2: EVOLVED TO A PHASE 3: EVOLVED TO MULTI PHASE 4: EXCLUSIVE NEXTGEN GOVERNANCE PLAYER BANKING BC POINT MODEL SPECIALITY STORE MODEL DIGITAL CONVENIENCE STORE PHASE 1: CSC & E-MITRA PHASE 4 : NEXTGEN KENDRA PHASE 2 : BANKING BC PHASE 3 : MULTI-SPECIALI
Slide 35: Thank You
Vakrangee J ’ Thank You