Vakrangee Limited · NSE:VAKRANGEE
Vakrangee — Q3 FY2024-25 Earnings Presentation
45 slides from Vakrangee's earnings presentation, Feb 5, 2025
Slide 1: Q3 & 9M FY2024-25 Results Update
SAB KAAM EK DUKAAN “GO TO MARKET PLATFORM” : BUILDING INDIA’S LARGEST LAST MILE DISTRIBUTION PLATFORM VAKRANGEE LIMITED Q3 & 9M FY2024-25 RESULTS UPDATE February 5, 2025
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 Results Performance Update 06 Update on Leadership Succession 12 Growth Strategy & Strategic Investment Update 15 Company Overview 24 Vision 2030 : Growth Targets 37 Update on Sustainability ESG Initiatives 42 3
Slide 4: Honoring the Legacy of Mr. Dinesh Nandwana
Honoring the Legacy of Mr. Dinesh Nandwana "A Visionary Leader, a Guiding Light, and an Everlasting Inspiration." • The passing of our esteemed Promoter and Chairman Emeritus, Mr. Dinesh Nandwana marks a profound moment in Vakrangee’s journey, but his vision, strategy, and leadership principles rema
Slide 5: Honoring the Legacy: Growth Roadmap
Honoring the Legacy of Mr. Dinesh Nandwana Growth Roadmap • Vakrangee remains committed to its long-term vision 2030, innovation-driven growth, and customer-centric approach. • Firmly believing in continuity and sustainable progress, Mr. Dinesh Nandwana smoothly transitioned leadership to the next g
Slide 6: Results Performance Update
RESULTS PERFORMANCE UPDATE 6
Slide 7: Key Highlights – 9M and Q3 FY2024-25
RESULTS PERFORMANCE UPDATE Key Highlights – 9M FY2024-25 (Y-o-Y Basis) – Consolidated Financials PROFIT BEFORE TAX & TOTAL INCOME EXCEPTIONAL ITEM In Rs Lakhs In Rs Lakhs 19,429.6 590.6 16,031.7 21.2% 281.1 110.1% 9M FY2023-24 9M FY2024-25 9M FY2023-24 9M FY2024-25 Key Highlights – Q3 FY2024-25 (Y-o
Slide 8: Q3 Revenue and GTV Contribution Break-up
RESULTS PERFORMANCE UPDATE BUSINESS : Q3 FY2024-25 REVENUE & GROSS TRANSACTION VALUE CONTRIBUTION BREAK-UP Revenue from Operations Break-up Gross Transaction Value (GTV) 0.2% 45.4% 22.5% 17.5% 13.1% 82.3% 19.1% BFSI ATM BFSI ATM E-Commerce & Other Services E-Commerce & Other Services Sale of ATM Pro
Slide 9: Results Performance Update
RESULTS PERFORMANCE UPDATE • 9M FY2024-25 Results: Revenue grows by 21.2% on YoY basis, Profit Before Tax & Exceptional Items more than doubles, increasing by 110.1% on a YoY basis. • Q3 FY2024-25 Results: Revenue grows by 31.7% on YoY basis, Profit Before Tax & Exceptional item increases by 72.0% o
Slide 10: 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 FY2024-25 Presence in Tier IV, V Total No. of Outlets Presence in States/UTs Presence in districts Our & VI Pre
Slide 11: Consolidated Financial Statements
CONSOLIDATED FINANCIAL STATEMENTS Key Profit & Loss Statement Items Particulars (Rs. in Lakhs.) Q3 FY2024-25 Q3 FY2023-24 9M FY2024-25 9M FY2023-24 YoY% FY2023-24 Total Income 6,863.0 5,212.9 19,429.6 16,031.8 21.2% 21,492.1 Total Expenses 6,701.7 5,119.1 18,839.0 15,750.6 19.6% 20,960.3 EBIDTA 622.
Slide 12: Update on Leadership Succession
UPDATE ON LEADERSHIP SUCCESSION 12
Slide 13: Strong Leadership Team in Place
UPDATE ON LEADERSHIP SUCCESSION STRONG LEADERSHIP TEAM IN PLACE TO DRIVE NEXT PHASE OF GROWTH ACROSS ALL BUSINESSES • Divya Nandwana is an accomplished professional with a strong foundation in technology and extensive experience in management consulting and strategic leadership. DIVYA • She holds a
Slide 14: Strong Board of Directors
UPDATE ON LEADERSHIP SUCCESSION STRONG BOARD OF DIRECTORS : INDEPENDENT / NOMINEE DIRECTORS ON THE BOARD H.C. MITTAL • H.C Mittal is a postgraduate and a certified associate from Indian Institute of Bankers. In his long and illustrious Non-Executive career of more than 37 years with Union Bank of In
Slide 15: Growth Strategy & Strategic Investment Update
GROWTH STRATEGY & STRATEGIC INVESTMENT UPDATE 15
Slide 16: Growth Strategy Update
GROWTH STRATEGY UPDATE UPDATE ON BUSINESS STRATEGY : STRATEGIC GROWTH INITIATIVES Update on Acquisition of Vortex Engineering Private Limited • Company has completed the acquisition of Vortex Engineering Private Limited from the IFC, Tata Capital Innovation Fund, Aavishkaar India Investors & other S
Slide 17: Strategic Investment Update: Vortex Engineering
STRATEGIC INVESTMENT UPDATE : VORTEX ENGINEERING Company Overview Unique offerings suited to emerging markets Key Metrics ▪ Incorporated in 2001, Vortex Engineering is the pioneer in ▪ Proprietary Linux based Operating Software; also low-power ATMs and is an India-based technology company compatible
Slide 18: Vortex: At an Inflection Point, Poised for Strong Growth
STRATEGIC INVESTMENT UPDATE : VORTEX ENGINEERING AT AN INFLECTION POINT, POISED FOR STRONG GROWTH ▪ India’s installed ATM capacity: ~250k+ machines. Large growing domestic ▪ Banking Sector branch expansion: 20,000+ new ATMs market & replacement ▪ Strong Revenue Visibility with robust Order Book in H
Slide 19: Focus on Innovation with Make in India
FOCUS ON INNOVATION WITH “MAKE IN INDIA” Banking Automation Front Load / Lobby Through-the-Wall Mini / Desktop / Products : Digital ATM Machine (TTW) ATM Mobile ATM Banking Unit (DBU) • Recently launched 2 new products i.e. Android ATM and MINI ATM • Banking Automation Products: Plan to launch Digit
Slide 20: Customer Profile and Key ATM Offerings
STRATEGIC INVESTMENT UPDATE : VORTEX ENGINEERING CUSTOMER PROFILE AND KEY ATM OFFERINGS Key Customers Key ATM Offerings Indian Public and Private Ecoteller – Front Load ATM Desktop ATM – Ecoteller Mini Sector Banks ▪ Very low operating ▪ Wall mountable or expenses Table top model ▪ Can operate under
Slide 21: Update on ATM Services: Mini ATM Launch
GROWTH STRATEGY: UPDATE ON ATM SERVICES LAUNCH OF MINI ATM WITH UPI ENABLED CASH WITHDRAWAL • Launched Mini ATMs with UPI-based cash withdrawals for enhanced customer convenience. • Plan to deploy mini-ATM across Vakrangee Kendra network. • Expanding Scalability & growth in the ATM business vertical
Slide 22: Launch of Private Label Product
GROWTH STRATEGY:LAUNCH OF PRIVATE LABEL PRODUCT • Vakrangee has successfully completed the Pilot phase and has commenced the first phase for sourcing and distribution of its own Private Label Apparel products under the e-commerce business category. • The Company has leveraged the extensive network o
Slide 23: Update on Banking Services
GROWTH STRATEGY: UPDATE ON BANKING SERVICES NEW BANKING PARTNERSHIPS ADDED DURING THE QUARTER : COMPANY HAS ALREADY RECEIVED 4,000+ DIGITAL BANKING MANDATES (BC POINTS) THIS WILL SIGNIFICANTLY ENHANCE THE BFSI REVENUES GOING FORWARD AS WELL AS SUPPORT THE NEW KENDRA ACQUISITION GROWTH !! NEW INSURAN
Slide 24: Company Overview
Vakrangee J ’ COMPANY OVERVIEW
Slide 25: Company's Journey So Far
COMPANY’S JOURNEY SO FAR PHASE 4: 2023 PHASE 1: 1990-2011 PHASE 2: 2012-2018 PHASE 3: 2019-2022 (POST DEMERGER) PHASE 2 : BUILDING PHASE 3 : NEXTGEN PHASE 4 : NEXTGEN PHASE 1 : EMERGED LEADER KENDRA BUSINESS ALONG VAKRANGEE KENDRA VAKRANGEE KENDRA & IN E-GOVERNANCE BUSINESS WITH E-GOVERNANCE BUSINES
Slide 26: Vakrangee Kendra – Scope of Services
VAKRANGEE KENDRA – SCOPE OF SERVICES Banking, ATM & Insurance Financial Services / Fintech E-Commerce / Online Travel Tele Medicine / Pharmacy (Available only on BharatEasy Mobile Super App) PAN INDIA PRESENCE: • 81% IN TIER 4-6 LOCATIONS PHYSICAL + DIGITAL • 5,577 POSTAL CODES ECO-SYSTEM • 597 DIST
Slide 27: Scope of Services: BFSI & ATM
VAKRANGEE KENDRA – SCOPE OF SERVICES BFSI & ATM SERVICES • ATM Cash Withdrawal • Non-Financial Transactions White Label ATM Operator • Opening of Online Demat & Trading Account • Money Transfer • Lead Generations of Personal / Business Loans • Pan Card Service • CIBIL Score service • Filing of I.T r
Slide 28: 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 • Subscription based OTT Plans (Only for Rajasthan) • E-Mitra serv
Slide 29: Vakrangee Kendra Model: New Look & Feel
VAKRANGEE KENDRA (VK) MODEL : NEW LOOK & FEEL MODEL 1 : VK WITH ATM WITH MODEL 2 : VK WITHOUT ATM MODEL 3 : VK WITHOUT ATM MODEL 4 : ONLY ATM PRIVATE BANK BC POINT WITH PSU BANK BC POINT WITH PRIVATE BANK BC POINT Min Area required 65-80 sq. ft. Min Area required 25-30 sq. ft. Key Features : Key Fea
Slide 30: 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 31: Long Term Sustainable & Profitable Business Model
Vakrangee Kendra : Long Term Sustainable & Profitable Business Model • With the development of the Digital Economy, India is fastly moving towards Digital Payment Mechanisms and Emerging as a Cashless Society • With the fast pace of digital payment penetration, Cash transactions such as ATM & Bankin
Slide 32: Update on Master Franchisee Initiatives
UPDATE ON 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 A ON- GOING PERPETUAL BASIS • DISTRICT LEVEL MASTER FRANCHISEE BEING APPOINTED.
Slide 33: Master Franchisee Initiatives: District Coverage
UPDATE ON MASTER FRANCHISEE INITIATIVES • APPOINTED MASTER FRANCHISEES IN 535 DISTRICTS ACROSS 31 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. cov
Slide 34: Growth Strategy to Achieve Vision 2030 Targets
GROWTH STRATEGY TO ACHIEVE VISION 2030 TARGETS • Already Appointed Master Franchisees in 535 Districts across 31 States/UTs FASTER EXPANSION OF THE across the Country. KENDRA NETWORK • Master Franchisee to provide on-ground operational support to the existing LEVERAGING MASTER franchisee outlets as
Slide 35: 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 36: 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 37: Vision 2030: Growth Targets
VISION 2030 : GROWTH TARGETS 37
Slide 38: Vision 2030: Growth Targets
VISION 2030 : GROWTH TARGETS • Vakrangee has emerged as One of India’s Largest last mile distribution platform with a Physical as well as Digital eco- system in place with a Pan India Presence. • Vakrangee aims to be most trustworthy Physical as well as Digital Convenience store across India. We wil
Slide 39: Huge Untapped Market: Overall Market Potential
VISION 2030 : GROWTH TARGETS HUGE UNTAPPED MARKET : OVERALL MARKET POTENTIAL 39
Slide 40: Detailed Expansion Plan
VISION 2030 : GROWTH TARGETS DETAILED EXPANSION PLAN As on As on Sr. FY2024-25 FY2025-26 FY2026-27 FY2027-28 FY2028-29 FY2029-30 Particulars March 31, March 31, No. Est. Est. Est. Est. Est. Est. 2023 2024 Cumulative Master Franchisee (Exclusive 1 158 437 600 764 764 764 764 764 District Level Busine
Slide 41: Financial Growth Plan
VISION 2030 : GROWTH TARGETS FINANCIAL GROWTH PLAN FY 2022-23 FY 2029-30 (E) US$ 1 BN Revenue Rs.197.3 CR Revenue (~Rs. 8,200 CR) EBITDA Margin EBITDA Margin ~10.0% 15.0% - 16.0% (Range) PAT Margin PAT Margin ~0.5% 10.0% - 12.0% (Range) Gross Transaction US$ 6.2 BN Gross Transaction US$ 150 BN Value
Slide 42: Update on Sustainability ESG Initiatives
UPDATE ON SUSTAINABILITY ESG INITIATIVES 42
Slide 43: Sustainability ESG Performance Update
SUSTAINABILITY ESG PERFORMANCE UPDATE VAKRANGEE ESG PERFORMANCE UPDATE S&P Global ESG Score Sustainalytics ESG Score Vakrangee has earned a “S&P Global Bronze Class” Source Link : https://www.sustainalytics.com/esg- spot in the yearbook and has score 78 ESG Score (S&P rating/vakrangee-ltd/1028256073
Slide 44: 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 45: Thank You
Vakrangee J ’ Thank You