Radiant Cash Management Services Limited · NSE:RADIANTCMS
Radiant Cash Management Services — Q4 FY2023 Earnings Presentation
31 slides from Radiant Cash Management Services's earnings presentation, May 22, 2023
Slide 1: Intimation of Earnings Conference Presentation to NSE and BSE
RADIANTCMS/EarningsCall/SE/2023-24 Date: 22.05.2023 To To Listing Department, Department of Corporate Services, National Stock Exchange of India Limited BSE Limited C-1, G-Block, Bandra - Kurla Complex Phiroze Jeejeebhoy Towers, Dalal Street, Bandra (E), Mumbai – 400 051 Mumbai – 400 001 Scrip Code:
Slide 2: Investor Presentation Q4FY23 and FY 2022-23
Investor Presentation Q4FY23 and FY 2022-23
Slide 3: Disclaimer
Disclaimer This Release / Communication, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar expressions
Slide 4: Financial Performance, Business Overview, Team, Key Performance Indicators, Summary Financials
01 Financial Performance 02 Business Overview 03 Team 04 Key Performance Indicators 05 Summary Financials
Slide 5: Financial Performance
01 FINANCIAL PERFORMANCE
Slide 6: Q4FY23 and FY23 Results – Financial Highlights
Q4FY23 and FY23 Results – Financial Highlights Revenue EBITDA PAT 25% 3,575 51% 897 2,870 64% 627 Strong yearly performance at both top 595 line and bottom line 382 Margins have seen an upward trend Balance Sheet continues to strengthen FY22 FY23 FY22 FY23 FY22 FY23 -3% Q-Q -7% Q-Q -9% Q-Q 15% Y-Y 9
Slide 7: FY23 Results – Operational Highlights
FY23 Results – Operational Highlights Pin Codes Total Touch Points Cash Movement (bn) 13,100 63,420 12,934 1,572 Added additional 166 pin codes to our coverage during the year. 49,980 1,304 Total pin codes covered now stands at 42,420 13,100 912 Retail touch points coverage also 12,043 increased by
Slide 8: Diversified Revenues across Segments and Industries
Diversified Revenues across Segments and Industries SEGMENTS INDUSTRIES FY22 FY23 FY22 FY23 Cash Pick-Up & Delivery 34% BFSI 31% 67% Strong growth led by increase in pick up points 69% 16% E-Commerce 15% Network Cash Management 22% Flat growth due to Tier-mix of added points 18% & petroleum sector 1
Slide 9: Q4FY23 and FY23 Results – Financials Snapshot
Q4FY23 and FY23 Results – Financials Snapshot P&L INR mn Q4FY22 Q4FY23 Y-Y(%) Q3FY23 Q-Q(%) FY22 FY23 Y-Y(%) Revenues 783 897 15% 929 -3% 2,860 3,549 24% Other income 2 17 4 9 26 Total Income 785 914 16% 933 -2% 2,870 3,575 25% Employee Costs 128 157 22% 162 -3% 497 605 22% As a % of Sales 16.4% 17.
Slide 10: Business Overview
02 Business Overview
Slide 11: Company Overview
Company Overview Leading integrated cash Experienced management logistics player in a team consolidating industry Pan India presence with Track record of strong strong network in Tier 2 financial performance and Tier 3+ locations Diversified client base with Significantly built long standing relatio
Slide 12: Business and Revenue Model
Business and Revenue Model Cash Pickup & Network Cash Cash Cash Van Others Delivery Management Processing Operations Pick up cash from end-user Value added service in which At end-user request, cash is Provide armored vans with full Includes Man Behind Counter Description outlet on daily basis or on
Slide 13: Cash transactions growing alongside Digitization
Cash transactions growing alongside Digitization Cash in Circulation (CIC) as % of GDP Cash in Circulation (CIC) in India Growth in CIC and Nominal GDP Cash in Circulation (as % of GDP) 15% 15% 39% 38% 15% 12% 11% 11% 12% 14% 11% 10% 15% 17% 15% 17% 9% 12% 12% 9% 11% 10% 11% 10% 10% 14% 13% 11% 16%
Slide 14: Retail Cash Management - Highly Underpenetrated Sector with growth tailwinds
Retail Cash Management - Highly Underpenetrated Sector with growth tailwinds Retail Cash Management segment is expected to grow at 20.3% CAGR during FY 2021-27 < 3% of Addressable retail outlets use cash management services Organized Retail to be a key growth driver 4.10 Indian Retail Industry in FY
Slide 15: Retail Cash Management – Lessons from rest of the world
Retail Cash Management – Lessons from rest of the world Key trends that drive the adoption of outsourced Retail Cash Management services US (85% org retail market) and 67% use cash management services 11% of transactions are non-cash – India has high cash usage 3mn+ addressable retail touch points 9
Slide 16: Banking Infrastructure severely underpenetrated
Banking Infrastructure severely underpenetrated Indian banking infrastructure compared to the rest of the world Bank Branch additions have been slow 250 57,055 Canada 1.9% 2.2% North America 2.0% 200 1.7% ATMs (per 100,000 adults) 18,377 14,186 11,189 150 Tier 1 Tier 2 Tier 3 Tier 4 Australia Japan
Slide 17: Significant potential in Tier 2 & 3 Cities
Significant potential in Tier 2 & 3 Cities Tier 2 & 3 cities the Non-metro cities to be an important driver of Retail Industry growth.. real growth levers of the e-commerce industry Retail Spend Across City Types (USD billion) E-Commerce market share in FY22 514 37.6% 38.7% Tier 1 Tier 2 71 79 92 79
Slide 18: Pan India footprint with strong network in Tier 2 and Tier 3+ locations
Pan India footprint with strong network in Tier 2 and Tier 3+ locations Pan-India presence with a focus on non metro cities Present at more than 63,420 touch points across India (ex Lakshadweep) 28 States and 8 Union Territories Pan-India North West 63,240+ touch points covering 3,182 presence Uttar
Slide 19: Diversified client base with long standing relationship
Diversified client base with long standing relationship Client base spans across India's largest foreign, private Revenue Contribution Pan-India and public sector banks due to our extensive reach presence especially in Non-Metro cities 90% 89% 81% Strong 66% Bespoke Services, consistent delivery of
Slide 20: Robust Risk Management Framework
Robust Risk Management Framework Cash Loss as proportion of Cash movement % 0.0040 0.0030 A stringent risk management policy – Combination of Human Touch and Technology 0.0019 Rigorous focus Automation and API integration ensuring real time on risk tracking 0.0010 mitigation and prevention Clear esc
Slide 21: Significantly built-up technology to optimise operations
Significantly built-up technology to optimise operations … Technology acting as a key differentiator API integration with few clients Allows efficient handling of operations in a high-fidelity Created API integration with a few of clients’ ERP business software, with a view towards providing a seaml
Slide 22: Team
03 Team
Slide 23: Experienced Board of Directors
Experienced Board of Directors Col. David Devasahayam Dr. Renuka David Mr. A.P. Vasanthakumar Chairman and Managing Director Whole Time Director Nominee Director Founder with a B.Sc. from JNU, M.Sc from Founder Director with an MBBS from Nominee Director of Ascent Capital with a University of Madras
Slide 24: Strong Management Team
Strong Management Team Col. Benz K. Jacob T.V. Venkataramanan Chief Operating Officer Chief Financial Officer Over 28 years of experience in the Indian Army and over 14 years in the Company Holds a degree in CA, CS and ICWA Bachelor degree in Arts from JNU, Delhi and a PG in Defence Studies from the
Slide 25: Key Performance Indicators
04 Key Performance Indicators
Slide 26: Key Performance Indicators
Key Performance Indicators PARTICULARS FY21 FY22 FY23 PARTICULARS FY21 FY22 FY23 Customer Base Operational Assets Clients 56 65 89 Cash Vans 694 739 840 End customers 2,469 2,675 3,242 Strong rooms 16 16 15 Safes 28 28 28 Geographical Reach Vaults 11 11 12 Pin codes 12,043 12,934 13,100 Locations 5,
Slide 27: Summary Financials
05 Summary Financials
Slide 28: Income Statement
Income Statement Particulars ( Rs million ) FY21 FY22 FY23 I Revenue from operations 2,217 2,860 3,549 II Other income 25 9 26 III Total Income ( I + II ) 2,242 2,870 3,575 IV Expenses Employee benefits expenses 390 497 605 Finance costs 20 37 9 Depreciation and Amortisation expenses 27 38 45 Other
Slide 29: Balance Sheet
Balance Sheet Particulars (Rs million ) FY21 FY22 FY23 Particulars (Rs million ) FY21 FY22 FY23 EQUITY AND LIABILITIES ASSETS Equity Non - Current Assets ( a ) Equity Share Capital 10 101 107 ( a ) Property , Plant and Equipment 94 132 126 ( b ) Share Application Money ( b ) Capital Work in Progress
Slide 30: Cash Flow Statement
Cash Flow Statement Particulars (Rs million) FY21 FY22 FY23 Particulars (Rs million) FY21 FY22 FY23 Cash Flows from Operating Activities Cash Flows from Investing Activities Profit Before Tax 450 521 843 Purchase of Property, Plant & Equipment , Intangibles (31) (61) (60) ( including capital advance
Slide 31: Thank You
THANK YOU Website www.radiantcashservices.com Email investorrelations@radiantcashlogistics.com kompass@radiantcashlogistics.com Contact +(91) 44 – 4904 4904
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