Radiant Cash Management Services Limited · NSE:RADIANTCMS
Radiant Cash Management Services — Q1 FY24 Earnings Presentation
35 slides from Radiant Cash Management Services's earnings presentation, Aug 8, 2023
Slide 1: Intimation of Earnings Conference Presentation
RADIANTCMS/EarningsCall-Presentation/SE/2023-24 Date: 08.08.2023 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 00
Slide 2: Investor Presentation Q1FY24
Investor Presentation Q1FY24
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: Agenda
01 Financial Performance 02 Business Overview 03 Key Performance Indicators 04 Team 05 Market Overview 06 Summary Financials
Slide 5: Financial Performance
01 Financial Performance
Slide 6: Q1FY24 Results – Financial Highlights
Q1FY24 Results – Financial Highlights Revenue EBITDA PAT Revenue growth (y-o-y) modest on account of strong base effect (post covid -6% Y-Y bounce back in Q1FY23) -7% Y-Y -8% Q-Q 11% Y-Y 4% Q-Q 934 -7% Q-Q 218 221 206 153 155 Q1 also a seasonally small quarter 143 897 EBITDA margins (y-o-y) impacted
Slide 7: Q1FY24 Results – Operational Highlights
Q1FY24 Results – Operational Highlights Pin Codes Total Touch Points Cash Movement (bn) Added additional 249 pin codes to our coverage during the quarter. 64,972 1,572 13,708 63,420 Total pin codes covered now stands at 1,304 13,708 13,459 49,980 Retail touch points coverage also increased by 1,552
Slide 8: Revenues across Segments and Industries
Revenues across Segments and Industries SEGMENTS INDUSTRIES Q1FY23 Q1FY24 Q1FY23 Q1FY24 33% BFSI 33% 70% Cash Pick-Up & Delivery 67% 12% E-Commerce 14% 18% Network Cash Management 19% 17% Organized Retail 19% 5% Cash Processing 5% 10% E-Com Logistics 6% Railways 4% 4% 5% Cash Van Operations 7% 2% Pe
Slide 9: Q1FY24 Results – Financials Snapshot
Q1FY24 Results – Financials Snapshot P&L INR mn Q1FY23 Q1FY24 Y-Y(%) Q4FY23 Q-Q(%) Revenues 840 934 11.1% 897 4.1% Other income 3 17 17 Total Income 844 951 12.7% 914 4.1% Employee Costs 139 168 20.7% 157 7.3% As a % of Sales 16.6% 18.0% 17.5% Other Expenses 486 577 18.6% 536 7.7% As a % of Sales 57
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: 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 64,972 touch points across India (ex Lakshadweep) 28 States and 8 Union Territories Pan-India North West 64,972+ touch points covering 3,182 presence Uttar
Slide 14: 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 Radiant's Revenues from tier 2 and Top 1 client Top 5 client Top
Slide 15: Robust Risk Management Framework
Robust Risk Management Framework Cash Loss as proportion of Cash movement (%) A stringent risk management policy – Combination of 31 bps Human Touch and Technology Rigorous focus Automation and API integration ensuring real time on risk tracking 14 bps mitigation and prevention Clear escalation fram
Slide 16: 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 seamles
Slide 17: Group CSR Initiatives
Group CSR Initiatives Nutrition, Education, and Sanitation are the key focus areas CSR Projects Ashraya Project About One of the flagship initiatives of RCMS. The project aims to provide free noon meals every day to the elderly and destitute. The project is running since 2011. RCMS is also associate
Slide 18: Key Performance Indicators
03 Key Performance Indicators
Slide 19: Key Performance Indicators
Key Performance Indicators PARTICULARS FY21 FY22 FY23 1Q 24 PARTICULARS FY21 FY22 FY23 1Q 24 Customer Base Operational Assets Clients 56 65 89 105 Cash Vans 694 739 840 852 End customers 2,469 2,675 3,242 3,285 Strong rooms 16 16 15 12 Safes 28 28 28 33 Geographical Reach Vaults 11 11 12 12 Pin code
Slide 20: Team
04 Team
Slide 21: Board of Directors
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, PG from th
Slide 22: Management Team
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 Previo
Slide 23: Market Overview
05 Market Overview
Slide 24: Cash intrinsically linked to Economic Growth
Cash intrinsically linked to Economic Growth Cash will continue to be a relevant medium of exchange Cash in Circulation (CIC) as % of GDP Cash in Circulation (CIC) in India Growth in CIC and Nominal GDP 15% 40 16.0% 14% 14.4% 13.4% 38% 35 12.7% 14.0% 12% 12% 12.0% 12.1% 12.2% 30 11.6%11.6% 11.3% 12.
Slide 25: Cash continues to be relevant globally
Cash continues to be relevant globally Cash intensity not correlated with the stage of economic development US (85% org retail market) and 67% use cash management services Cash transactions prevalent across the globe 96% 86% 54% 47% 39% 41% 3mn+ addressable retail touch points 85% of retail market i
Slide 26: Retail market potential – Tier 2 & 3 dominate
Retail market potential – Tier 2 & 3 dominate Domination of Traditional Retail to keep cash payments relevant India’s economic expansion intrinsically linked to its tier 2 and tier 3 towns Non-metro cities to be an important driver of Retail Industry growth Rest of India 514 Next 50 79 Next 16 92 Ti
Slide 27: Banking infrastructure underpenetrated
Banking infrastructure underpenetrated Poor banking infrastructure in Non-metro cities to continue driving demand for cash-based payments Bank Branch additions have been ATM additions in Rural and Semi-Urban Cash expected to remain the slow given push for digitization outpace that in Urban and Metro
Slide 28: Cash remains the dominant mode even in new-age businesses
Cash remains the dominant mode even in new-age businesses Cash-based payments prevail even in E-commerce Digital commerce highly underpenetrated despite rising internet penetration As evident in percentage of CoD transactions across the country Manipur Jammu & Kashmir Uttarakhand 89.6% 84.1% 76.1% P
Slide 29: UPI: High usage intensity, but not for Commerce
UPI: High usage intensity, but not for Commerce India digitizing fast, but not for retail payments About half of the population still doesn’t use Internet in India, Penetration in India well ahead of the world in terms of digital payment intensity rural areas is worse due to low tele-density Time Sp
Slide 30: Large untapped potential in the cash management industry
Large untapped potential in the cash management industry Huge addressable market & growth potential ahead Retail Cash Management in India expected to grow at a CAGR of 17% during < 3% of Addressable retail outlets use Cash Management services FY24-FY27 4.1 3.01 34.6 0.81 0.11 0.45 0.224 29.5 FY2021
Slide 31: Historical Summary Financials
06 Historical Summary Financials
Slide 32: 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 33: 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 95 132 126 ( b ) Share Application Money ( b ) Capital Work in Progress
Slide 34: 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 35: Thank You
THANK YOU Website www.radiantcashservices.com Email investorrelations@radiantcashlogistics.com kompass@radiantcashservices.com Contact +(91) 44 – 4904 4904
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