Slide 1: NSE filing cover letter for Investor Presentation
August 05, 2024 To, To, National Stock Exchange of India Ltd., BSE Limited, Exchange Plaza, C-1 Block G, Bandra Kurla Phiroze Jeejeebhoy Towers, Dalal Street, Complex Bandra [E], Mumbai – 400051 Fort, Mumbai -400 001 NSE Scrip Symbol: BLSE BSE Scrip Code: 544107 ISIN: INE0NLT01010 ISIN: INE0NLT01010
Slide 2: Investor Presentation Q1FY25
Investor Presentation Q1FY25 Banking Store Investment G2C August 2024 1
Slide 3: Safe Harbor
Safe Harbor This Presentation and the accompanying slides (the “presentation”), have been prepared by BLS E-Services Limited (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form
Slide 4: Contents
Contents Q1FY25 Performance Highlights Company Overview Industry Overview Historical Performance Highlights Key Investment Highlights 3
Slide 5: Q1FY25 Performance Highlights
Q1FY25 Performance Highlights 4
Slide 6: Consolidated Performance Highlights – Q1FY25
Consolidated Performance Highlights – Q1FY25 Financial highlights Revenue from operations stood at Rs. 75.4 Crores as compared to Rs. 75.3 Crores in Q1FY24 EBITDA witnessed a growth of 36.7% YoY to Rs. 11.7 Crores in Q1FY25 as against Rs. 8.6 Crores in Q1FY24 EBITDA Margin improved by 418 bps
Slide 7: Consolidated Financial Snapshot - Q1FY25
Consolidated Financial Snapshot - Q1FY25 Q1FY25 Revenue EBITDA PAT Rs. 75.4 Crores Rs. 11.7 Crores Rs. 12.6 Crores Vs. Rs. 75.3 Crores 36.7% YoY 127.0% YoY (Q1FY24) EBITDA Margin PAT Margin 15.6% 16.8% 418 bps YoY 938 bps YoY in Rs. Crores
Slide 8: Consolidated Key Financial Highlights – Q1FY25
Consolidated Key Financial Highlights – Q1FY25 Revenue from Operations EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 11.4% 14.8% 15.6% 7.4% 14.8% 16.8% 20.00 28.00 +37% 18.00 75.3 73.6 75.4 16.00 23.00 +127% 14.00 +8% +16% 18.00 12.00 11.7 10.9 10.00 13.00 8.00 8.6 8.00 10.9 6.00 4.00 12.6 2.00 3.
Slide 9: Consolidated Profit & Loss Statement - Q1FY25
Consolidated Profit & Loss Statement - Q1FY25 Particulars (₹ in Crore) Q1FY25 Q1FY24 YoY Q4FY24 QoQ Revenue from Operations 75.4 75.3 0.0% 73.6 2.3% Cost of Services 50.8 52.5 52.2 Employee Benefit Expenses 8.4 6.7 7.9 Other Expenses 4.4 7.5 2.6 EBITDA 11.7 8.6 36.7% 10.9 7.8% EBITDA Margin (%) 15.6
Slide 10: Company Overview
Company Overview
Slide 11: BLS E-Services at a Glance
BLS E-Services at a Glance BLS E-Services Limited (BLSe), through its tech-enabled integrated business model, provides digital and physical products and services in the G2C, B2C, B2B categories in semi-urban, rural and remote areas. 110,000+ 1,000+ Touchpoints BLS Stores BLSe has three business
Slide 12: Key Milestones
Key Milestones Listing on NSE and BSE; Acquisition of shareholding in Acquisition of Starfin India Signed definitive Share BLS Kendras Private Limited Private Limited Purchase Agreement to by way of equity swap acquire 55% stake in ASPL* 2016 2018 2022 2022 2023 2024 Incorporation of BLS-E Conversio
Slide 13: Tech-enabled Digital Service Offerings
Tech-enabled Digital Service Offerings BLS works as Business Correspondents Government services facilitated to for Banks i.e., being an extended arm of citizens directly via BLS owned kiosks the Banks to increase accessibility of their such as BLS Sewa. services to the citizens. This involves
Slide 14: Bouquet of Services Provided by BLSe
Bouquet of Services Provided by BLSe Banking CSP Insurance Micro ATM E-learning / BLS Edutech AEPS Telemedicine Travel Refurbished Smart Phones Money Transfer Assisted E-Commerce Ayushmaan Bharat PM-JAY VISA & Passport Application Recharge PAN Card Services IRCTC Train
Slide 15: Business Correspondent Services
Business Correspondent Services Delivering last mile banking services to unserved and underserved rural and remote population as a part of the Financial Inclusion Program of Govt. of India Comprehensive range of solutions Advantage gained by our clients Channels and distribution strategies Highl
Slide 16: E-Governance & Assisted E-Services
E – Governance & Assisted E-Services One stop shop platform to offer citizen centric services B2B2C Services being provided of all the Government Departments. Majorly: Identity through Portal & Mobile App enrolment & updation, certificates, etc. Efficient and cost-effective Jan Seva Kendra (CSC)
Slide 17: Cross-selling and Up-selling under Digital Services
Cross-selling and Up-selling under Digital Services We intend to become the “Go to Market Platform” for various business verticals including fintech and digital platforms. The assisted digital convenience stores (BLS Touchpoints) act as the “One-stop solution” for availing various products & service
Slide 18: Board & Management
Board & Management He holds a bachelors from Delhi University. He has over 10 years of experience and is the Joint Managing Director of BLS International Services Ltd. His business acumen and innovative thinking have played a vital role in the BLS International's Shikhar Aggarwal Chairman exponentia
Slide 19: Corporate Structure
Corporate Structure BLS International Services Public Limited & BLS Promoters 68.9% 31.1% BLS E-Services Limited Starfin India Pvt Ltd BLS Kendras Pvt Ltd (BC Business) (E-Governance Business) 100.0% 100.0% Zero Mass Pvt Ltd (BC Business) 90.9% Only key operational subsidiaries have been included 18
Slide 20: Industry Overview
Industry Overview 19
Slide 21: Industry Overview
Industry Overview Business Correspondent Industry Business Correspondent (BCs) work on a commission-based model. The commission is paid as a certain percentage of the value transacted or a E-Governance fixed fee per transaction depending on the Assisted E-Services Services Industry agreement. Indu
Slide 22: Industry Dynamics & Key Growth Drivers
Industry Dynamics & Key Growth Drivers India’s population surpassed China in January 2023 and has become the most populous country. Additionally, India is expected to be the fastest growing economy. This would lead to significant demand for E-services, Banking Correspondent Services as well as assis
Slide 23: Business Correspondent (BC) – An Overview
Business Correspondent (BC) – An Overview BC Industry is expected to grow at 19% CAGR from FY22 to FY25P BCs work on a commission-based model. The commission is paid as a certain percentage of the value transacted or a BC Industry Size (in Rs. Billion) fixed fee per transaction depending on the ag
Slide 24: Business Correspondent – Key Statistics (1)
Business Correspondent – Key Statistics (1) Amount transacted in BSBDA accounts through Number of transactions in Basic BCs increased over the years (Rs. Billion) Savings Account through BCs 3000 70% 49% 9,053 60% 47% 8,706 8,498 2500 43% 43% 3,500 8,156 10,000 38% 50% 9,000 35% 2000 3,000 5,913 8,0
Slide 25: Business Correspondent – Key Statistics (2)
Business Correspondent – Key Statistics (2) Number of transactions in Basic Savings Presence of Banking Outlets in Villages (in ‘000) Account through BCs (in Million) 59% 60% 60% 54% 56% 56% 3000 120% 500 52% 61% 98% 49% 408 95% 97% 450 402 2500 91% 91% 90% 91% 90% 2274 380 51% 2218 100% 400 320 339
Slide 26: Opportunity in E-Governance for the next phase of growth
Opportunity in E-Governance for the next phase of growth India’s scores are low compared to other countries providing government services online India’s rank in e-Governance is improving, as per UN Survey Particulars EGDI OSI Particulars 2014 2022 China 0.8119 0.8876 Russia 0.8162 0.7368 EGDI Compos
Slide 27: Advantages of E-Governance
Advantages of E-Governance Enhance delivery and efficiency of Convenience to Citizens government services 01 10 and Businesses Efficient government management 02 09 Significant reduction in Cost with simultaneous growth in revenues Empower Citizens through Increased legitimacy access to information
Slide 28: Historical Financial Highlights
Historical Financial Highlights
Slide 29: Consolidated Key Financial Highlights
Consolidated Key Financial Highlights Revenue c EBITDA & EBITDA Margin +77% CAGR 7.2% 13.6% 13.9% 301.5 41.8 243.1 33.1 96.7 6.9 FY22 FY23 FY24 FY22 FY23 FY24 PAT & PAT Margin Net Worth 5.6% 8.4% 11.1% 431.1 33.5 20.4 106.9 5.4 15.1 FY22 FY23 FY24 FY22 FY23 FY24* * FY24 includes ~ Rs. 300 crores pro
Slide 30: Consolidated Historical P&L Statement
Consolidated Historical P&L Statement Particulars (₹ in Crore) FY22 FY23 FY24 Revenue from Operations 96.7 243.1 301.5 Cost of Services 63.5 161.7 207.6 Employee Benefit Expenses 6.4 23.2 29.7 Other Expenses 19.9 25.1 22.3 EBITDA 6.9 33.1 41.8 EBITDA Margin (%) 7.1% 13.6% 13.9% Finance Costs 1.0 3.9
Slide 31: Consolidated Historical Balance Sheet
Consolidated Historical Balance Sheet Consolidated (in Rs. Crores) FY22 FY23 FY24 ASSETS Non-current assets Property, Plant and Equipment 0.2 1.1 4.7 Goodwill 8.0 81.5 81.5 Other Non-Current Assets 20.9 26.7 115.0 Current Assets Inventories - 0.6 1.6 Trade Receivables 8.5 18.2 25.2 Other Current Ass
Slide 32: Key Investment Highlights
Key Investment Highlights
Slide 33: Investment Rationale
Investment Rationale 01 02 03 04 05 BLSe have a history of Merchant led business BLSe’s ability to bring BLSe charge consumers BLSe has Pan India acquiring complementary model wherein all the BLS together the advantages with a service fee and presence through its businesses, that touch points & BLS
Slide 34: Way forward
Way forward Organic growth Focus on volume led growth across the three verticals of BCs, E-Gov & Assisted E-services Follow an aggressive strategy to win new government tenders for E-governance business New tieups with financial institutions viz Banks, Insurance companies, NBFC,etc Continue
Slide 35: Thank You
Thank You BLS E-Services Limited Ernst & Young LLP Mr. Rahul Sharma, Executive Director & CFO Vikash Verma / Rohit Anand / Riddhant Kapur cs@blseservices.com vikash.verma1@in.ey.com / rohit.anand4@in.ey.com / riddhant.kapur@in.ey.com 34