Vakrangee Limited · NSE:VAKRANGEE
Vakrangee — Q3 FY2019-20 Earnings Presentation
58 slides from Vakrangee's earnings presentation, Feb 13, 2020
Slide 1: Filing cover letter to stock exchanges
Vakrangee Vakrangee LImited "Vakrangee Corporate House", Plot No. 93, Road No. 16. MJD.C. Marcl, Andheri (East). Mumbai 400093. Maharashlra W. www.vakrangee.inIL ~ 91 22 2850 3412/ .. 9122 6776 5100 F: .. 9122 2850 20171 ON' L65990MH1990PLCQ56669 ""'" """"" February 13, 2020 To, Depa rtment of Corpo
Slide 2: Vakrangee Limited Results Update – Q3FY2019-20
THE ASSISTED DIGITAL CONVENIENCE STORE VAKRANGEE LIMITED RESULTS UPDATE – Q3FY2019-20 February 13, 2020
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 Q3 FY2019-20 Results Update 21 Strong Corporate Governance – Regulatory Compliances 23 Company Overview 25 Update on Awards & Recognition 42 Board of Directors Team 45 Annexures 48 Kendra Evolution 49 3
Slide 5: Results Performance Update
RESULTS PERFORMANCE UPDATE 4
Slide 6: Key Highlights – Q3 FY2019-20
RESULTS PERFORMANCE UPDATE Key Highlights – Q3 FY2019-20 (Y-o-Y Basis) REVENUE FROM OPERATIONS EBITDA PROFIT AFTER TAX (PAT) In Rs Mn 1,992.0 214.4 298.9 1,518.5 105.8% 73.7 305.6% 37.1 477.9% Q3 FY2018-19 Q3 FY2019-20 Q3 FY2018-19 Q3 FY2019-20 Q3 FY2018-19 Q3 FY2019-20 Key Highlights – Q3 FY2019-20
Slide 7: Results Performance Update commentary
RESULTS PERFORMANCE UPDATE • Robust growth seen in Financials across all parameters due to clear focus on Store profitability and service activation across the network. • Revenue from Operations increased by 105.8% YoY basis and 31.2% QoQ basis due to increase in number of operational outlets and ma
Slide 8: Vakrangee Kendra Outlets – Performance Update
VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE ~Rs. 75.5 Bn 10,000+ Quarterly Throughput on Vakrangee No. of NextGen Outlets currently Platform – Transaction Value operational ~US$ 4.3 Bn ~24.0 Mn Annual Run Rate Throughput – Quarterly No. of Transactions on Transaction Value - basis Current No. Vakr
Slide 9: GMV / Throughput Contribution by Vertical
VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE Q3 FY2019-20 - GMV / THROUGHPUT CONTRIBUTION (RS. MN.) Q-on-Q GROWTH RATES : Margin Profile % E-Commerce * 2,506 2 - 15% BFSI VERTICAL 10% ATM 22,109 Rs. 15/ Fin Txn BFSI 50,868 0.25 - 0.40% ATM VERTICAL Flat 0 10000 20000 30000 40000 50000 60000 • BFSI
Slide 10: Visibility on Opening of Nextgen Outlets
VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE VISIBILITY ON OPENING OF NEXTGEN OUTLETS Total Number of Total Number of Outlets under Operational Outlets : Formal Expression of On-Boarding Interest : 10,000+ Process : 80,000+ 13,000+ CLEAR VISIBILITY OF 25,000 NEXTGEN OUTLETS TO BE ON-BOARDED BY MAR
Slide 11: Guidance on Opening of Nextgen Outlets
VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE GUIDANCE ON OPENING OF NEXTGEN OUTLETS 3,00,000 NO OF NEXTGEN OUTLETS 25,000 23,000+* 8,500 LONG TERM TARGET 3,504 95 Dec-18 Mar-19 Jun-19 Dec-19 Dec-20 E** Mar-25 E Note: * Operational outlets Outlets under On-Boarding Process Planned Target is to have
Slide 12: Highlights of Grant Thornton Report
HIGHLIGHTS OF GRANT THORNTON REPORT Grant Thornton (GT) has done a detailed study and released a report on “ Financial Inclusion and Rural India – Banking & ATM sector in India”. Financial inclusion is the key to bridging the social divide and achieving a well distributed, robust and sustainable eco
Slide 13: Highlights of Grant Thornton Report – White Label ATM
HIGHLIGHTS OF GRANT THORNTON REPORT Click on image for GT Report: • Vakrangee has emerged as the fastest growing and third largest White Label ATM player in the country. • Vakrangee is the 13th Largest ATM operator in India. However, in Rural India it is 3rd largest ATM operator behind only SBI and
Slide 14: Update on Alliance – Telemedicine Services
UPDATE ON ALLIANCE – TELEMEDICINE SERVICES • Vakrangee Limited (VL) has tied up with vHealth by Aetna to offer a combination of Telemedicine services and privileged access to its nationwide network of hospitals and clinics. • Aetna is a CVS Health Company (Fortune 8 Enterprise), one of the world’s l
Slide 15: Well Poised for Strong Growth
VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE Debt Free & Cash Rich Balance Sheet Zero Strong Promoter Senior WELL Pledge & Mgmt. team POISED FOR Promoter in Place STRONG Stake GROWTH Increased Scalable All Franchisee Regulatory Model with Compliances Strong in Place Operating Leverage 14
Slide 16: Case Studies
CASE STUDIES 15
Slide 17: Nextgen Top Performers: Assisted Online Shopping
CASE STUDIES : NEXTGEN TOP PERFORMERS “I have earned Rs. 1,08,171 From Assisted Online Shopping in just 1 month” MOHAMMED ARIF NCR (DELHI) Number of Orders 10,733 TIER 1 LOCATION AGEING OF OUTLET – 12 MONTHS 16 Total Sale Value ₹ 5,00,970 16
Slide 18: Nextgen Top Performers: Assisted Online Pharmacy
CASE STUDIES : NEXTGEN TOP PERFORMERS “I have earned Rs. 43,401 From Assisted Online Pharmacy in just 1 month” SUPARNA RAJE WEST BENGAL Number of 2,961 TIER 2 LOCATION Transaction AGEING OF OUTLET – 14 MONTHS Total Transaction Value ₹ 2,89,415 17
Slide 19: Nextgen Top Performers: Banking Services
CASE STUDIES : NEXTGEN TOP PERFORMERS “I have earned Rs. 76,186 From BFSI – Banking Services in just 1 month” NAND LAL SWAMI RAJASTHAN Number of Accounts 36 TIER 5 LOCATION Opened AGEING OF OUTLET – 12 MONTHS Total Transaction Value ₹ 2,55,27,850 18
Slide 20: Nextgen Top Performers: ATM Services
CASE STUDIES : NEXTGEN TOP PERFORMERS “I have earned Rs. 1,24,029 From BFSI – ATM Services in just 1 month” SARVADAMAN PATHAK RAJASTHAN Number of Financial 11,709 TIER 1 LOCATION Transaction AGEING OF OUTLET – 12 MONTHS 19 Total Transaction Value ₹ 1,95,22,500 19
Slide 21: Nextgen Top Performers: Money Transfer
CASE STUDIES : NEXTGEN TOP PERFORMERS “I have earned Rs. 36,782 From BFSI – Domestic Money Transfer Service in just 1 month” YOGESH HUMANE MAHARASHTRA Number of 1,449 TIER 6 LOCATION Transactions AGEING OF OUTLET – 17 MONTHS Total Transaction Value ₹ 59,30,444 20
Slide 22: Q3 FY2019-20 Results Update
Q3 FY2019-20 RESULTS UPDATE 21
Slide 23: Consolidated Financial Statements
CONSOLIDATED FINANCIAL STATEMENTS Key Profit & Loss Statement Items Particulars (Rs. Mn.) Q3FY2019-20 Q2FY2019-20 QoQ% Q3FY2018-19 YoY% 9MFY2019-20 Revenue from Operations 1,992.0 1,518.5 31.2 967.9 105.8 4,778.3 Total Expenses 1,925.5 1,558.9 23.5 1,133.5 69.9 4,799.8 EBIDTA 298.9 204.6 46.1 73.7 3
Slide 24: Strong Corporate Governance
STRONG CORPORATE GOVERNANCE : ALL REGULATORY DUE DILIGENCE ALREADY IN PLACE 23
Slide 25: Strong Corporate Governance: SEBI, EOW, MCA Investigations
STRONG CORPORATE GOVERNANCE ALL REGULATORY DUE DILIGENCE ALREADY IN PLACE SEBI INVESTIGATION EOW INVESTIGATION MCA INSPECTION There were no findings or Clean chit given to Update on MCA Inspection instance of any stock promoter & promoter - No Irregularities & no manipulation by Promoter group with
Slide 26: Company Overview
COMPANY OVERVIEW 25
Slide 27: Nextgen Vakrangee Kendra – Scope of Services
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES Vakrangee Kendra offers a broad spectrum of services across different sectors to offer a “One Stop Shop” solution for its customers ASSISTED E-COMMERCE : BFSI & ATM SERVICES : Assisted Online Shopping and ATM Pharmacy Insurance Services Bill Payments and
Slide 28: Assisted E-Commerce Services
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES ASSISTED E-COMMERCE SERVICES • Online Shopping of Goods • Online Shopping of Jewellery • Online Shopping of Medicines • Telemedicine services • Mobile/DTH Recharge • Bill Payments • E-Mitra services in Rajasthan (Only for Rajasthan) • Train Ticket Booking
Slide 29: E-Commerce Marketing Initiatives
E-COMMERCE MARKETING INITIATIVES Link to the Co-Branded Advertisement Campaign - Amazon & Vakrangee : https://www.youtube.com/watch?v=MPtZ_c62 Odg https://www.youtube.com/watch?v=- AJarKHI94c 28
Slide 30: Unique Features of Assisted Online Shopping
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES UNIQUE FEATURES OF ASSISTED ONLINE SHOPPING Own The World’s Monopolistic Biggest E-mall : More than Offering of Marketplace 1 Crore+ products POTENTIAL EARNING OF High Quality Products at Rs. 1,00,000+ Competitive Prices Zero Working Capital per month Req
Slide 31: BFSI & ATM Services
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES BFSI & ATM SERVICES • ATM Cash Withdrawal • Non-Financial Transactions (White Label ATM License) • Money Transfer • Lead Generations of Personal/Home/ Business Loans • Life Insurance • General Insurance • Health Insurance • Account Opening • Cash Withdraw
Slide 32: Formats of Nextgen Vakrangee Kendra
FORMATS OF NEXTGEN VAKRANGEE KENDRA NEXTGEN VAKRANGEE KENDRA: GOLD, SILVER AND BRONZE MODEL Update on Nextgen 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 sto
Slide 33: Key Features – Nextgen Vakrangee Kendra
KEY FEATURES – NEXTGEN VAKRANGEE KENDRA KEY FEATURES • Exclusive store model with same service level and same STORE EXCLUSIVITY & Customer experience CONSISTENT • Standardized layout & design by L&H (Lewis & Hickey) BRANDING • Uniform and Consistent Branding for Higher brand recall and visibility •
Slide 34: Nextgen Vakrangee Kendra – Gold Model
NEXTGEN VAKRANGEE KENDRA – GOLD MODEL NEXTGEN VAKRANGEE KENDRA: GOLD MODEL 33
Slide 35: Nextgen Vakrangee Kendra – Silver Model
NEXTGEN VAKRANGEE KENDRA – SILVER MODEL NEXTGEN VAKRANGEE KENDRA: SILVER MODEL 34
Slide 36: Nextgen Vakrangee Kendra – Our Presence
NEXTGEN VAKRANGEE KENDRA – OUR PRESENCE Sr. No. State & UT Name 1 Andhra Pradesh 23,000+* OUTLETS 2 3 Assam Bihar 4 Chandigarh 5 Chhattisgarh 30 STATES & UTs 6 7 Dadra and Nagar Haveli Daman and Diu 8 NCR (Delhi) 9 Goa 10 Gujarat 11 Haryana 12 Himachal Pradesh 13 Jammu & Kashmir 14 Jharkhand 15 Karn
Slide 37: Huge Untapped Market: Overall Market Potential
HUGE UNTAPPED MARKET: OVERALL MARKET POTENTIAL POPULATION 1.21 BILLION TOTAL NO OF VILLAGES 6,54,424 TOTAL OUTLET POTENTIAL 3,69,977 RURAL OUTLET POTENTIAL 2,94,442 URBAN OUTLET POTENTIAL 75,535 Click here – Potential Market Opportunity 36
Slide 38: Advantage Vakrangee: Our Strengths
ADVANTAGE VAKRANGEE : OUR STRENGTHS Tie up with Technology & On Ground Field Size and Scale Strong Partners & Integration Presence till the with Strong Access to Key Expertise Block Level Franchisee Model Licenses • Over two decades of • Field Level Hierarchy System Integration till the Block level
Slide 39: Store Economics of a Nextgen Kendra
STORE ECONOMICS OF A NEXTGEN KENDRA NextGen Outlet Estimated Avg. Revenue per Month Revenue Per Store Rs. 0.1 mn * NextGen Outlet Estimated Ranging from 65:35 to 80:20 based on Commission Sharing Ratio Service Type Vakrangee Margins NextGen Outlet Estimated Operational Gross Level – 18-20% Profit Ma
Slide 40: Our Proprietary Technology Platform
OUR PROPRIETARY TECHNOLOGY PLATFORM Technology Internet Connectivity • Technology platform integrated with CBS of • Seamless connectivity through V-SAT or Broadband Internet various banks, delivering real-time & interoperable banking access • Biometric authentication enabling quick KYC Security Spec
Slide 41: Franchisee Focused Team Structure
FRANCHISEE FOCUSED TEAM STRUCTURE Relationship Relationship Manager Corporate Head Office Team Manager Dedicated Dedicated support support State Operations State Marketing directly from directly from Head Office Head Head Head Office to franchisee to franchisee for all type of for all type of Operat
Slide 42: White Label ATM – Opportunity
WHITE LABEL ATM – OPPORTUNITY • India rank’s is 145 in the world in terms of ATM Density 2,728 ATM per Mn Population • Low ATM Penetration in Tier 3, 4, 5 and 6 cities ~ Huge 2,206 opportunity for WLAs to bridge the gap between Urban 1,688 1,657 1,609 and Rural India 1,276 1,157 1,048 • As on Decemb
Slide 43: Update on Awards & Recognition
UPDATE ON AWARDS & RECOGNITION 42
Slide 44: Awards & Recognition
AWARDS & RECOGNITION Vakrangee makes history by setting GUINNESS Vakrangee has been awarded as the best WORLD RECORDSTM title for the Most stores ‘FINANCIAL SERVICES RETAILER OF THE YEAR’ at launched simultaneously on 14th January 2019 the Indian Retail Awards 2019. Launches 1107 Nextgen Vakra
Slide 45: Awards and Certifications
AWARDS AND CERTIFICATIONS • Guinness World Records Title for the Most Stores Launched Simultaneously on 14th January 2019. Launches 1107 Nextgen Vakrangee Kendra stores across the country at 11.07 am on the same day • Awarded as the best ‘Financial Services Retailer of the year’ at the Indian Retail
Slide 46: Board of Directors Team
BOARD OF DIRECTORS TEAM 45
Slide 47: Board of Directors
BOARD OF DIRECTORS Strong Board of Directors • Has about 40+ years of business experience. He has held several leadership positions in the Reserve Bank of RAMESH JOSHI India and has been Nominee Director on behalf of RBI on the Boards of Various Banks, and retired as an Non Executive Executive Direc
Slide 48: Board of Directors
BOARD OF DIRECTORS Strong Board of Directors AVINASH VYAS • Has wide experience in Audit Certification for externally aided projects funded by foreign agencies such as World Non Executive Bank and its extended arms Independent Director • Holds a Bachelor’s Degree in Commerce and is LL.B (professiona
Slide 49: Annexures
ANNEXURES 48
Slide 50: Kendra Evolution
KENDRA EVOLUTION 49
Slide 51: Kendra Evolution – Phase 1: E-Governance Player
KENDRA EVOLUTION PHASE 1: INITIALLY AN E-GOVERNANCE PLAYER PHASE 1: CSC & E-MITRA MODEL OUTLETS WERE PRIMARILY TERMED AS “COMMON SERVICE CENTRE - CSC” OR “E-MITRA KENDRA” :- • NON-EXCLUSIVE STORE MODEL • SINGLE LINE OF SERVICE PRIMARILY E-GOVERNENCE SERVICES • NO STANDARDIZED DESIGN LAYOUT & BRANDIN
Slide 52: Kendra Evolution – Phase 1
KENDRA EVOLUTION PHASE 1: INITIALLY AN E-GOVERNANCE PLAYER 51
Slide 53: Kendra Evolution – Phase 2: Banking BC Point Model
KENDRA EVOLUTION PHASE 2: E-GOVERNANCE PLAYER TO A BANKING BC POINT MODEL PHASE 2 : BANKING BC POINT MODEL COMPANY RECEIVED THE BUSINESS CORRESPONDENCE BANKING MANDATE AND STARTED THE BC POINT SERVICES THROUGH THE KENDRA – • NON-EXCLUSIVE • DUAL LINE OF SERVICE - E-GOVERNENCE & BANKING SERVICES • NO
Slide 54: Kendra Evolution – Phase 2
KENDRA EVOLUTION PHASE 2: E-GOVERNANCE PLAYER TO A BANKING BC POINT MODEL 53
Slide 55: Kendra Evolution – Phase 3: Multi Speciality Store Model
KENDRA EVOLUTION PHASE 3: E-GOVERNANCE PLAYER TO MULTI SPECIALITY STORE MODEL PHASE 3 : MULTI-SPECIALITY STORE MODEL EVOLVED INTO A MULTI SPECIALITY STORE MODEL :– • PLANNED AS AN EXCLUSIVE STORE MODEL • MULTI-LINE OF SERVICES – BANKING, E- GOVERNENCE, INSURANCE, E-COMMERCE & OPTIONAL ATM SERVICES •
Slide 56: Kendra Evolution – Phase 3
KENDRA EVOLUTION PHASE 3: E-GOVERNANCE PLAYER TO MULTI SPECIALITY STORE MODEL 55
Slide 57: Kendra Evolution – Phase 4: Nextgen Kendra Model
KENDRA EVOLUTION PHASE 4: E-GOVERNANCE PLAYER TO AN EXCLUSIVE NEXTGEN ASSISTED DIGITAL CONVENIENCE STORE PHASE 4 : NEXTGEN KENDRA MODEL – ASSISTED EVOLUTION INTO AN EXCLUSIVE ASSISTED DIGITAL CONVENIENCE STORE DIGITAL CONVENIENCE STORE MODEL – • EXCLUSIVE STORE MODEL • MULTI-LINE OF SERVICES – BANKI
Slide 58: Thank You
Thank You 57