Radiant Cash Management Services Limited · NSE:RADIANTCMS
Radiant Cash Management Services — Q3 FY2024 Earnings Presentation
39 slides from Radiant Cash Management Services's earnings presentation, Feb 13, 2024
Slide 1: Intimation of Earnings Conference Presentation to Stock Exchanges
RADIANT Cash Management Services Limited (Formey noenae feat Cash Man0t Service Pt Ltd (An 1S0 9001-2015 Company) @sg intertek €IN L7499TN2005PL€0$$748 GS No 3344CCR9619120 PAN N AACCR96 19# RADIANTCMS/Q3/EarningsCall-Presentation/SE/2023-24 Date: 13.02.2024 To To Listing Department, Department of C
Slide 2: Investor Presentation Q3FY24 and 9MFY24
RADIANT CASH MANAGEMENT SERVICES Investor Presentation Q3FY24 and 9MFY24
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 expressi
Slide 4: Agenda
@mus 01 Financial Performance 02 Business Overview 03 Key Performance Indicators 04 Team 05 Market Overview 06 Summary Financials
Slide 5: Financial Performance
taAouAwr � CASH MANAGEMENT SERVICES 01 Financial Performance
Slide 6: Q3FY24 and 9MFY24 Results – Financial Highlights
Q3FY24 and 9MFY24 Results – Financial Highlights Revenue EBITDA PAT 237.3 Y-o-Y Revenue growth muted at 8% due +7% Q-Q +18% Q-Q +18% Q-Q 1004.0 to degrowth in e-com logistics 180.6 170.3 segment, offset by growth in Organized 152.7 120.3 Retail and BFSI. Growth up from 6% in 101.7 Q2 as the trend ar
Slide 7: Q3FY24 and 9MFY24 Results – Operational Highlights
Q3FY24 and 9MFY24 Results – Operational Highlights Pin Codes Total Touch Points Cash Movement (bn) Added additional 817 pin codes to our coverage during the 9 months of FY24. 13,812 66,422 Total pin codes covered now stands at 63,420 1,572 14,276 13,459 1,304 49,980 Retail touch points coverage also
Slide 8: Revenues across Segments and Industries
Revenues across Segments and Industries SEGMENTS INDUSTRIES Q3FY23 Q3FY24 Q3FY23 Q3FY24 BFSI 29% Strong growth from SFBs, 33% 68% Cash Pick-Up & Delivery 66% Few points in NBFCs lost to competition E-Commerce 16% Good growth in festive season 16% 19% Network Cash Management 19% Organized Retail 16%
Slide 9: Q3FY24 and 9MFY24 Results – Financials Snapshot
Q3FY24 and 9MFY24 Results – Financials Snapshot Upto Upto P&L INR mn Q3FY23 Q3FY24 Y-Y(%) Q2FY24 Q-Q(%) Dec’22 Dec’22 Y-Y(%) FY23 FY24 Revenues 929 1004 8.1% 935 7.4% 2652 2873 8.3% Other income 4 9 20 9 46 Total Income 933 1013 8.6% 955 6.1% 2,661 2,918 9.7% Employee Costs 162 191 18.0% 178 7.3% 44
Slide 10: Business Overview
• 9nn tjaAoANr � CASH MANAGEMENT SERVICES 02 Business Overview
Slide 11: FY 2024: A year of Consolidation and Transformation Planning
FY 2024: A year of Consolidation and Transformation Planning Revolutionizing India’s Cash Ecosystem High Quality of Earnings 70%+ recurring revenue Rationalise existing merchant touchpoints based on profitability New businesses to add significantly to topline and bottom line FY24: Higher capex and e
Slide 12: Our Strategic Pillars
Our Strategic Pillars • Consolidate and Grow the Core Business Move up the Value Chain with a • Improve network efficiency through touchpoints Phygital Platform rationalization • Secure physical network across 14,000 pin codes • Gross addition of 10-12,000 new touchpoints • ~10,000 personnel and 950
Slide 13: Acemoney: Opportune Acquisition, Adds legs to long term growth
Acemoney: Opportune Acquisition, Adds legs to long term growth Acemoney specializes in providing comprehensive state-of-the-art digital banking solutions in the rural areas targeting rural retail outlets, rural cooperative banks and cooperative societies Problem How do we break the chain? • Fintech
Slide 14: Acemoney: Integrate and grow a new Pillar
Acemoney: Integrate and grow a new Pillar Revenue Channels g One time AMC DMT Insurance UPI QR SAAS cost Charges Commissions Commissions PIDF income ' % 7 ' ' Tie-ups Micro ATM/AEPS Loans Utility Services Prepaid card Coupons Offer & Transaction Margins Referral Amount (Bills/Recharges) MDR Cross se
Slide 15: Unlocking Growth Potential in the Valuables Logistics Sector
Unlocking Growth Potential in the Valuables Logistics Sector Diversification into Valuables Management: Diamonds, Bullion, and Jewelry Sector Demand for gold in India remains resilient despite rise in gold prices Pan-India presence to facilitate valuables’ logistics across the country •• Jewelry Man
Slide 16: Company Overview
Company Overview - / I \ Leading integrated cash logistics player in a ----@ •-----• Experienced management team consolidating industry '' % .' ' % ' \ ' Pan India presence with Track record of strong strong network in Tier 2 and Tier 3+ locations • I I I financial performance I • I Diversified clie
Slide 17: Business and Revenue Model
Business and Revenue Model @=9 7 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 ba
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 in every district across India 28 States and 8 Union Territories Pan-India North West 67,680+ touch points covering 3,182 presence Uttarakhand 14,276 pin codes across I
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 Revenue from Tier 2 and Tier 3+ towns 89% 81% 81% Strong 8
Slide 20: 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 0 Clear escalation fr
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 seamles
Slide 22: 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 23: Key Performance Indicators
• 9nn tjaAoANr � CASH MANAGEMENT SERVICES 03 Key Performance Indicators
Slide 24: Key Performance Indicators
Key Performance Indicators PARTICULARS FY21 FY22 FY23 9MF24 PARTICULARS FY21 FY22 FY23 9MF24 Operational Assets Customer Base L--------------------------------------------,«.. L--------------------------------------------- Cash Vans 694 739 840 870 '""' , Clients 56 65 89 127 e « "., • « Strong room
Slide 25: Team
• 9nn tjaAoANr � CASH MANAGEMENT SERVICES 04 Team
Slide 26: 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 e Founder with a B.Sc. from JNU, M.Sc from @ Founder Director with an MBBS from e Nominee Director of Ascent Capital with a University o
Slide 27: 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 28: Market Overview
• 9nn tjaAoANr � CASH MANAGEMENT SERVICES 05 Market Overview
Slide 29: 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% 1
Slide 30: 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 ,a 86% 96% % 0 3mn+ addressable retail touch points @ 85% of retail market is organ
Slide 31: 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 iii iii iii#ei iii-iii-ii - Rest of India
Slide 32: 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 33: 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
Slide 34: 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 35: 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 36: Historical Summary Financials
• 9nn tjaAoANr � CASH MANAGEMENT SERVICES 06 Historical Summary Financials
Slide 37: Income Statement
Income Statement Particulars ( Rs million ) FY21 FY22 FY23 9MF24 I Revenue from operations 2,217 2,860 3,549 2,873 II Other income 25 9 26 46 III Total Income ( I + II ) 2,242 2,870 3,575 2,918 IV Expenses Employee benefits expenses 390 497 605 537 Finance costs 20 37 ------------ ------------ -----
Slide 38: Balance Sheet
Balance Sheet 6 Particulars (Rs million ) FY21 FY22 FY23 9MF24 Particulars (Rs million ) FY21 FY22 FY23 9MF24 t EQUITY AND LIABILITIES ASSETS Equity Non - Current Assets ( a ) Equity Share Capital 10 101 107 107 ( a ) Property , Plant and Equipment 95 132 126 207 ( b ) Share Application Money ( b )
Slide 39: Thank You
RADIANT CASH MANAGEMENT SERVICES THANK YOU Website www.radiantcashservices.com ,, mi L f IL p f IL 1IL Al /AH II f a Email 4lf Ill irri~ism it ' I II pl IIT IHI[III - HHl investorrelations@radiantcashlogistics.com I Al III(IL ill4l HI lit Itt tttttl tit - Ti AH Al II Contact +(91) 44 – 4904 4904
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