Alankit Limited · NSE:ALANKIT
Alankit — Q3 FY2019 Earnings Presentation
60 slides from Alankit's earnings presentation, Feb 22, 2019
Slide 1: Exchange filing cover letter: Investors' Presentation
22nd January, 2019 To, The General Manager The National Stock Exchange of India Ltd. Department of Corporate Services Exchange Plaza, 5th Floor, Bombay Stock Exchange Limited C-1, Block G, Bandra – Kurla Complex, P.J Towers, Dalal Street Bandra (E), Mumbai – 400001 Mumbai – 400051 Phones: 022 - 2272
Slide 2: Alankit Investor Presentation
Alankit Investor Presentation Health & Wealth, We Manage Both February - 2019 1
Slide 3: Executive Summary
2 Executive Summary Alankit Group is one of the largest group in the country providing E-Governance Services and Products aligned with welfare schemes devised by the government. The Group started its business operations in India in 1991 under the guidance of Mr. Alok Kumar Agarwal. The Company
Slide 4: Company Overview
3 COMPANY OVERVIEW
Slide 5: Company Overview
4 Company Overview Alankit Group is one of the largest players in providing E-Governance FY18 Revenue Mix (%) 1 services in the country. 3% 6% Alankit has market leadership in Tax Information Network (TIN) facilitation TIN 2 business (PAN, TAN & e-TDS) and is also a market leader in other services T
Slide 6: Alankit's Presence
5 Alankit’s Presence Facilitation No. of Cities Franchises Centres 6,120 673+ As on FY18 Total Number of PAN TIN Owned Offices Facilitation Centres Centres Centres 21 1,850 4,391 2,541 Overseas Presence 03 Applications Processed PAN Issued ~75 Mn 3300 ~21 Mn 75+ AADHAR Card Issued ~30 Mn Corporate C
Slide 7: Geographical Reach
6 Geographical Reach Wide Reach Across Highly Populated States In India Robust Growth In Expansion Of Business Location Network 144 740 689 632 400 380 361 350 270 264 263 247 214 181 179 175 Alankit has Well Penetrated Business Location Network steadily grown its business center network base from 3
Slide 8: Alankit Facilitation Centers
7 Alankit Facilitation Centers State-of-the-art and fully equipped centres ensure a high quality service in the lowest possible time to its valued customers.
Slide 9: Management Overview
8 Management Overview Mr Alok Agarwal – Chairman Mr. Ankit Agarwal – Managing Director Over 35 years of experience in financial services and e- More than 9 years of experience in the field of financial and e- Governance sector. Governance services. Associated with Capital Markets since past 22
Slide 10: Company History and Evolution
9 Company History and Evolution Launch of TIN Facilitation centre Appointed as GST Suvidha Provider by GSTN Business Correspondent (BC) tie-up with Bank of Baroda (BoB) e-Return Intermediary Aadhar Services tie-up with YES Bank and Kotak Mahindra Bank Registrar for .IN (dot IN) Alankit
Slide 11: E-Governance Business Clientele
10 E-Governance Business Clientele E-Governance Clientele Manpower Business Clientele Business Correspondent and Aadhar Services Clientele
Slide 12: Key Clientele
11 Key Clientele Media & IT & ITES Telecom BFSI Healthcare Power, Realty Auto & Auto & Components Infrastructure Government EmbassyofIndia AbuDhabi – United Arab Emirates Authorities Others E-governance Business UID, PAN, NSR, NPS Services Alankit has a total Retail customer base comprising of over
Slide 13: Awards and Achievements
12 Awards and Achievements Alankit’s Information Security Best Brand Awards 2017 Aadhaar Excellence Award President’s Club 2017 Management System is Symbol of Excellence by ‘The (2011) Entrust Datacard according to the relevant Economic Times’ Aadhaar Enrollment by UIDAI Standard
Slide 14: Key Strengths
13 Key Strengths Maximum Professionals Diversified Governments (CA, MBA) As Client Base Key Partner Partners with little or no For New cost for Rollouts rendering additional services Service Digital Based Assistance Business Model Last Mile Connectivity Flexible Between Business Government Segments
Slide 15: Business Overview
14 BUSINESS OVERVIEW
Slide 16: Business Segments
15 Business Segments 100% Alankit E-Governance GST Suvidha Provider Allied Services 56% E-Governance Services 44% Allied E-Governance Services Digital Signature Certificate TIN Facilitation Centres Manpower Business Forex Business PAN Centres Multi Functional Devices UID Services Trading of Smart Ca
Slide 17: Service Revenue Break-up
16 Service Revenue Break-up Revenue Break-up Over The Years (INR Mn) INR 1,088 Mn^^ 25 274 INR 360 Mn^ FY15 16 45 172 546 FY18 203 56 96 FY15 FY18 * Data pertains to group companies for the same activities for 0 100 200 300 400 500 600 comparison purpose ^Others Include: NSR, P2F, NIR. Other Allied
Slide 18: E-Governance - Services
17 E-GOVERNANCE - SERVICES
Slide 19: End-to-End Service Process
18 End-to-End Service Process Services Alankit Facilitation Centres Authorising Agency Collection of application: PAN • NEW PAN Cards • Changes or corrections in existing PAN data TIN FACILITATION SERVICES Collection of Application: TAN • New TAN Cards • Changes or corrections in existing TAN data C
Slide 20: TIN Facilitation Centre
19 TIN FACILITATION CENTRE About TAX INFORMATION NETWORK(TIN) Tax Information Network (TIN) is a repository of nationwide tax filing and consolidation framework established by NSDL on behalf of the IT Dept with the sole purpose to improve efficiency & transparency of processes for collection, proces
Slide 21: E-TDS Return Filling
20 E-TDS RETURN FILLING About E-TDS Return Filling E-TDS SALES (INR Mn) Entities making payments to third parties (deductees) are required 3.4 2.73 to deduct tax at source (TDS) from these payments and furnish TDS returns containing the details of the deductee(s) together with 2.17 deposit details o
Slide 22: Statement of Financial Transaction (SFT) Filing
21 STATEMENT OF FINANCIAL TRANSACTION (SFT) FILING About Statement Of Financial Transaction (SFT) Filing As per Rule 114E, it is mandatory for certain types of persons classified as reporting entities to file Form 61A or Statement of Financial Transactions each year. The statement of financial trans
Slide 23: PAN Card
22 PAN CARD GROWTH IN PAN SALES & About PAN ENROLMENTS (In Mn) Permanent Account Number (PAN) is a unique, 10-character alpha-numeric code 15 that acts as an identification for individuals, families and corporates (Indian and 11 Foreign as well), especially those who pay Income Tax under the Indian
Slide 24: Aadhar / UID Services
23 AADHAR / UID Services GROWTH IN AADHAR (INR Mn) About AADHAR AADHAAR number is a 12-digit random number issued by the UIDAI (“Authority”) to 31 27 the residents of India after satisfying the verification process laid down by the Authority. 7 An individual needs to enrol for AADHAAR only once and
Slide 25: Central Record Keeping Agency- Facilitation Centre
24 Central Record Keeping Agency- Facilitation Centre CRA Sales (INR Mn) Central Record Keeping Agency 65 NSDL was appointed as the Central Record Keeping Agency (CRA) by PFRDA for Central / State 21.5 Government employees covered under the New Pension System. 16.1 The main functions and respons
Slide 26: E-Governance – Allied Services
25 E-GOVERNANCE – Allied Services
Slide 27: Staffing & Manpower Business
26 Staffing & Manpower Business India is the world’s second largest labour market; only approx.10% of India's labour force works in formal employment Out of nearly 446 Mn workforce approx. 20 Mn people are unemployed & approx. 350 Mn is informally employed Flexi-staffing industry in India rema
Slide 28: Alankit Multi Functional Device (MFD)
27 Alankit Multi Functional Device(MFD) It is a digital platform which enables seamless Service Offering payments, GST solutions & authentications processes Payment by Utilize your to SMEs, Banks, Government departments & Biometric BIB as BIB as Service point for Any mode in-the-field capability M
Slide 29: Trading of Smart Card Printers
28 Trading of Smart Card Printers Alankit Ltd is an national distributor for Entrust Datacard Printers of USA. Data card printers are ideal for small & medium sized businesses, schools, hospitals, Fitness Clubs and basically anyone who prints ID cards as a part of their work. The main use of t
Slide 30: Other Allied Services
29 Other Allied Services National Skills Registry National Insurance Repository Paper To Follow (P2F) NAASCOM Initiative to create, operate & maintain a Alankit is one of agencies working as an Alankit is the largest P2F agent with 59 fully registered & verified database of skilled IT/BPO auth
Slide 31: GST Suvidha Provider
30 GST Suvidha Provider
Slide 32: GST Suvidha Provider
31 GST SUVIDHA PROVIDER About GST Service GST Solutions The GSTN (GST Network) has selected a total of 73 GST Suvidha Providers (GSPs) for providing GST return filing and other aided services to GST registered taxpayers. With MSME companies growing steadily and their share to GDP growing as well, th
Slide 33: Allied Services
ALLIED SERVICES 7) - vy i i
Slide 34: Certifying Agency (CA) - Online Electronic Signature Service
33 Certifying Agency (CA) - Online Electronic Signature Service Digital Signature Certificate (DSC) is the electronic format of physical or paper certificate used for identity authentication. D-Sign, a type of Electronic Signature, offers more security than a traditional electronic security wher
Slide 35: Industry Potential: Forex Business
34 Forex Business- Unified Fully Fledged Money Changer Indian sub-continent is witnessing a robust growth in inbound foreign tourists driven by govt. initiatives. 1.54 Expenditure by foreign tourists has shown a steady increase, driven by the rise in arrivals. 1.35 1.23 1.10 Alankit has entered
Slide 36: Strategic Overview
> Heath Weath, We Manage Bot STRATEGIC OVERVIEW
Slide 37: Growth Strategy
36 Growth Strategy Geographically expand the current business Continuously diversify services portfolio and network become an active member of Government of India’s initiative- ‘Digital India’ Pursue strategic acquisitions and alliances Backward and Forward Integration Cross-sell / Up-sell multiple
Slide 38: Financial Overview
Heath & Weath, We Manage Both FINANCIAL OVERVIEW 37
Slide 39: Historical Standalone Income Statement
38 Historical Standalone Income Statement INCOME STATEMENT (INR MN) FY16 FY17* FY18* 9M-FY19* Revenue from operations 291 849 1,044 850 Other Income 11 17 29 29 Total Income 302 866 1,073 879 Total Expenses 217 648 777 706 EBITDA 85 218 296 173 EBITDA Margin 29.21% 25.68% 28.35% 19.68% Depreciation
Slide 40: Standalone Balance Sheet (As per IND-AS)
39 Standalone Balance Sheet (As per IND-AS) PARTICULARS (INR MN) FY17 FY18 H1-FY19 PARTICULARS (INR MN) FY17 FY18 H1-FY19 EQUITIES & LIABILITIES ASSETS Shareholder Funds Non Current Assets (A) Share Capital 143 143 143 (A) Property, plant and equipment 30 40 204 (B) Other Equity 324 483 522 (B) Good
Slide 41: Historical Consolidated Income Statement
40 Historical Consolidated Income Statement INCOME STATEMENT (INR MN) FY16 FY17* FY18* Revenue from operations 296 851 1,051 Other Income 11 17 37 Total Income 307 868 1,088 Total Expenses 221 650 789 EBITDA 86 218 299 EBITDA Margin 28.01% 25.12% 27.48% Depreciation 34 15 35 Finance Cost - - 7 PBT 5
Slide 42: Consolidated Balance Sheet (As per IND-AS)
41 Consolidated Balance Sheet (As per IND-AS) PARTICULARS (INR MN) FY17 FY18 PARTICULARS (INR MN) FY17 FY18 EQUITIES & LIABILITIES ASSETS Shareholder Funds Non Current Assets (A) Share Capital 143 143 A) Property, plant and equipment 30 65 (B) Other Equity 326 488 B) Intangible assets 248 337 Total
Slide 43: Key Ratios
42 Key Ratios Income EBITDA (INR Mn) PAT (INR Mn) 1,088 216 299 868 218 133 307 86 37 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 RoE & RoCE Debt Equity Book Value per Share 0.11 4.67 36% 32% 3.28 0.07 2.47 32% 28% 12% 10% FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 ROE ROCE Note: FY17 & FY18 numb
Slide 44: Disclaimer
43 Disclaimer Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not curr
Slide 45: Thank You
44 THANK YOU 44
Slide 46: Alankit Earnings Presentation 9M / Q3-FY19
Alankit Earnings Presentation Health & Wealth, We Manage Both 9M / Q3-FY19 1
Slide 47: Executive Summary
2 Executive Summary Alankit Group is one of the largest group in the country providing E-Governance Services and Products aligned with welfare schemes devised by the government. The Group started its business operations in India in 1991 under the guidance of Mr. Alok Kumar Agarwal. The Company
Slide 48: Company Overview
3 Company Overview 1 Alankit Group is one of the largest players in providing E-Governance FY18 Revenue Mix (%) services in the country. 3% 6% Alankit has market leadership in Tax Information Network (TIN) facilitation TIN 2 business (PAN, TAN & e-TDS) and is also a market leader in other services T
Slide 49: Business Segments
4 Business Segments 100% Alankit E-Governance GST Suvidha Provider Allied Services 56% E-Governance Services 44% Allied E-Governance Services Digital Signature Certificate TIN Facilitation Centres Manpower Business Forex Business PAN Centres Multi Functional Devices UID Services Trading of Smart Car
Slide 50: 9M / Q3-FY19 Financial Overview
5 9M / Q3–FY19 FINANCIAL OVERVIEW 5
Slide 51: 9M / Q3-FY19 Financial and Operational Highlights
6 9M / Q3-FY19 Financial and Operational Highlights Financial Highlights: •Q3-FY19 Financial Performance (Standalone): •9M-FY19 Financial Performance (Standalone): •Total Income: INR 335 Mn •Total Income: INR 879 Mn •EBITDA: INR 75 Mn •EBITDA: INR 173 Mn •EBITDA Margin: 22.39% •EBITDA Margin: 19.68%
Slide 52: Q3-FY19 Standalone Income Statement (IND-AS)
7 Q3-FY19 Standalone Income Statement (IND-AS) INCOME STATEMENT (INR MN) Q3-FY19 Q3-FY18 Y-o-Y Q2-FY19 Q-o-Q Revenue from operations 319 277 15.2% 275 16.0% Other Income 16 5 220.0% 7 128.6% Total Income 335 282 18.8% 282 18.8% Total Expenses 260 196 32.7% 238 9.2% EBITDA 75 86 (12.8)% 44 70.5% EBIT
Slide 53: 9M-FY19 Standalone Income Statement (IND-AS)
8 9M-FY19 Standalone Income Statement (IND-AS) INCOME STATEMENT (INR MN) 9M-FY19 9M-FY18 Y-o-Y Revenue from operations 850 796 6.8% Other Income 29 21 38.1% Total Income 879 817 7.6% Total Expenses 706 581 21.5% EBITDA 173 236 (26.7)% EBITDA Margin 19.68% 28.89% (921) Bps Depreciation 27 21 28.6% Fi
Slide 54: Historical Standalone Income Statement
9 Historical Standalone Income Statement INCOME STATEMENT (INR MN) FY16 FY17* FY18* 9M-FY19* Revenue from operations 291 849 1,044 850 Other Income 11 17 29 29 Total Income 302 866 1,073 879 Total Expenses 217 648 777 706 EBITDA 85 218 296 173 EBITDA Margin 29.21% 25.68% 28.35% 19.68% Depreciation 3
Slide 55: Standalone Balance Sheet (As per IND-AS)
10 Standalone Balance Sheet (As per IND-AS) PARTICULARS (INR MN) FY17 FY18 H1-FY19 PARTICULARS (INR MN) FY17 FY18 H1-FY19 EQUITIES & LIABILITIES ASSETS Shareholder Funds Non Current Assets (A) Share Capital 143 143 143 (A) Property, plant and equipment 30 40 204 (B) Other Equity 324 483 522 (B) Good
Slide 56: Historical Consolidated Income Statement
11 Historical Consolidated Income Statement INCOME STATEMENT (INR MN) FY16 FY17* FY18* Revenue from operations 296 851 1,051 Other Income 11 17 37 Total Income 307 868 1,088 Total Expenses 221 650 789 EBITDA 86 218 299 EBITDA Margin 28.01% 25.12% 27.48% Depreciation 34 15 35 Finance Cost - - 7 PBT 5
Slide 57: Consolidated Balance Sheet (As per IND-AS)
12 Consolidated Balance Sheet (As per IND-AS) PARTICULARS (INR MN) FY17 FY18 PARTICULARS (INR MN) FY17 FY18 EQUITIES & LIABILITIES ASSETS Shareholder Funds Non Current Assets (A) Share Capital 143 143 A) Property, plant and equipment 30 65 (B) Other Equity 326 488 B) Intangible assets 248 337 Total
Slide 58: Key Ratios
13 Key Ratios Income EBITDA (INR Mn) PAT (INR Mn) 1,088 216 299 868 218 133 307 86 37 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 RoE & RoCE Debt Equity Book Value per Share 0.11 4.67 36% 3.28 32% 0.07 2.47 32% 28% 12% 10% 0 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 ROE ROCE Note: FY17 & FY18 nu
Slide 59: Disclaimer
14 Disclaimer Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not curr
Slide 60: Thank You
15 THANK YOU 15