Bls International Services Ltd. · NSE:BLS
Bls International Services — Q2 FY2020 Earnings Presentation
37 slides from Bls International Services's earnings presentation, November 2019
Slide 1: Investor Presentation Q2 & H1FY20
Investor Presentation Q2 & H1FY20
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by BLS International Services Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 3: Table of Content
Table of Content 01 Q2&H1FY20 Highlights Vision Touch the lives of billion 02 Company Overview people globally by creating a differentiated service experience using innovation and technology 03 Visa Processing Vertical Mission 04 Provide easy, innovative and Citizen Services Vertical agile solutions
Slide 4: Q2 & H1FY20 Highlights
Q2 & H1FY20 Highlights 01 Fortune India’s Next 500 Companies (2019) Forbes Asia’s ‘Best under a Billion’ Company (2018)
Slide 5: Q2 & H1FY20 – Consolidated statement of profit and loss
Q2 & H1FY20 – Consolidated statement of profit and loss Operational revenue up 12.3% YoY in H1FY20 (Rs. Cr) Q2 FY20 Q2 FY19 H1 FY20 H1 FY19 and 11.8% YoY in Q2FY20 driven by organic Revenue 203.6 182.1 430.5 383.4 growth in core business of visa, passport and consular services Gross Profit 65.0 69.4
Slide 6: Consolidated Balance sheet as on 30th September 2019
Consolidated Balance sheet as on 30th September 2019 (Rs. Cr) Sep’19 Mar’19 - Rs 56.9 cr reduction in trade receivables Current Assets 367.4 388.5 - Punjab contract receivables as on 30th Trade Receivables 119.4 176.3 Sept’19 is Rs 67.5 cr Cash and Bank 209.7 173.9 Financial Assets 38.3 38.3 Cash an
Slide 7: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow (Rs. Cr) H1FY20 H1FY19 46.6 Operating profit before WC change 114.4 C/F from operating activities 69.4 34.1 Change in Working Capital 48.1 145.5 -11.3 Direct taxes -17.0 -9.4 Purchase of property, plant and equipment and intangibles -13.9 0.1 Sale proceeds from pr
Slide 8: Update on Punjab contract - Change in business model
Update on Punjab contract - Change in business model Earlier model New model Awarded contract in 2016 New Contract awarded in Jul 2018 BLS to offer 223 services through 2,147 Sewa Kendras BLS to offer higher range of services – 254 BLS to collect government fees and service charges upfront
Slide 9: Developments during the quarter
Developments during the quarter Expansion & New Centres: Commenced accepting visa applications for Brazil in Beirut, Lebanon and inaugurated new Spain Visa Application Centres in Belarus and Miami Relocation to larger Centres: Spain Visa Application Centres relocated to larger sites in Ankara &
Slide 10: Company Overview
Company Overview 02 Fortune India’s Next 500 Companies (2019) Forbes Asia’s ‘Best under a Billion’ Company (2018)
Slide 11: Specialist provider of visa processing, value added & citizen services
Specialist provider of visa processing, value added & citizen services 1 of 3 60+ Players in global visa, Countries of operations passport and citizen services Rs 136 cr Net cash excluding debt (FY19) 14 ~5,000 Years of global On-roll employees and experience associates 32% High return ratios (FY19
Slide 12: Successful expansion on back of deep domain experience and expertise
Successful expansion on back of deep domain experience and expertise 2005-10 2011-15 2016-17 2018 - Present Established leading position with Continued expansion in core business Started visa processing services in Rapid expansion, added seven major contracts; first listed visa and citizen services;
Slide 13: Leadership team with right mix of promoters and professionals
Leadership team with right mix of promoters and professionals Rakesh Amol Shikhar Aggarwal Managing Director Joint Managing Director Over three decades of global experience in Young and dynamic professional with proactive initiative- large public and multinational corporations taking strategy an
Slide 14: Supported and guided by advisory board
Supported and guided by advisory board Vinod Kumar Duggal - Ravi Dhingra - Member Anil Wadhwa - Member Chairman Former Secretary of Government Former Secretary of Government Former Governor of Manipur & of India of India Mizoram T K Vishwanathan - Member Subhash Goel - Member Former Law Secretary &
Slide 15: Awards and accolades
Awards and accolades Excellence in Visa, Passport Recognized by Media Research Group in 2014 Outsourcing and Allied Services 2018 Companies Research Report 2017 as India’s award Best Visa Outsourcing Services Company Today’s Traveler Award for Best Visa Recognized for Excellence in Travel 2017 Servi
Slide 16: Visa Processing Vertical
Visa Processing Vertical 03 Fortune India’s Next 500 Companies (2019) Forbes Asia’s ‘Best under a Billion’ Company (2018)
Slide 17: Leading visa processor with value-added services to drive growth and profit
Leading visa processor with value-added services to drive growth and profit Visa Processing Value Added Services Amongst top three players in the visa outsourcing service industry Standard Premium Platinum with over 14 years of experience in providing following service Photocopy Premium Lounge
Slide 18: Strong presence in a growing and untapped market…
Strong presence in a growing and untapped market… Growth in outsourcing of visa application 69% of the market still World Travel & Tourism growth compared with worldwide untapped other sectors, 2018 22% Key drivers for the expansion Manufacturing 4.0% 31% Outsourced of the outsourcing service Travel
Slide 19: … with high entry barriers for new players
… with high entry barriers for new players Long gestation Procurement for visa process outsourcing/service concessions can take up to a year or period longer depending on the contract size Past experience and Past performance/ references in the field of Consular outsourcing are mandatory to pass exp
Slide 20: Successful execution of the largest global visa processing contract
Successful execution of the largest global visa processing contract Government of Visa and related Client Service Geography Global centres Spain services Objective Solution Impact Promote Spain as a tourism- Contract covered 47 countries The share of Spain in the attractive destination of pres
Slide 21: Citizen Services Vertical
Citizen Services Vertical 04 Fortune India’s Next 500 Companies (2019) Forbes Asia’s ‘Best under a Billion’ Company (2018)
Slide 22: Contiguous expansion into citizen and front-end services leveraging existing capabilities
Contiguous expansion into citizen and front-end services leveraging existing capabilities Passport Contiguous expansion into citizen services by Application leveraging the competence in visa processing and consular services Notarial Passport Services Renewal Capabilities and applications built in vi
Slide 23: Well placed to tap the annual global G2C opportunity…
Well placed to tap the annual global G2C opportunity… Global opportunities Our experience Indication of Market Size National identification card programme (Afghanistan) BLS was awarded the first international Citizen Services contract from the Embassy of Afghanistan in 2017 150 500+ $100bn Outsour
Slide 24: …And emerging opportunities for citizen services in India
…And emerging opportunities for citizen services in India Government has shown intent At both centre and state levels, 02 and commitment to accelerate the adoption of 04 initiatives are being undertaken to promote the Digital India online platform for model for rendering public providing Citizen Ser
Slide 25: Punjab project – Delivering front-end service to Indian citizens at the grassroots
Punjab project – Delivering front-end service to Indian citizens at the grassroots Government of State of Punjab Client Service Citizen & Front-end Geography Punjab (India) Challenge Solution Impact Citizen services delivered only Establishment of Kendras for The project made it possible through u
Slide 26: Competitive Strengths
Competitive Strengths 05 Fortune India’s Next 500 Companies (2019) Forbes Asia’s ‘Best under a Billion’ Company (2018)
Slide 27: Strategic deployment of Technology, People & Process for seamless execution
Strategic deployment of Technology, People & Process for seamless execution Technology Private and secured cloud ISO 9001, ISMS 27001, ISO 23026 certified #1 Data Centre by Gartner (2017) for network security and adherence to demanding EU benchmarks People ~5,000 employees with more than 90%
Slide 28: Strong global presence
Strong global presence No of Countries 62 12 FY13 FY19 No of Centres 2,325 40 FY13 FY19 Abu Dhabi | Afghanistan | Ajman | Algeria | Armenia| Austria | Azerbaijan | Bahrain | Bangladesh | Bolivia | Belarus | Cameroon | Canada | China | Dominican Republic | Dubai | Ecuador | Egypt | Equatorial Guinea
Slide 29: Asset light, high FCF business model with net cash positive
Asset light, high FCF business model with net cash positive Asset light model driving return ratios Cash and bank All global branch offices are on lease Efficient capital utilization, funds utilized only for contracts execution as compared to acquiring assets 173 Citizen service offices are op
Slide 30: Growth Strategies
Growth Strategies 06 Fortune India’s Next 500 Companies (2019) Forbes Asia’s ‘Best under a Billion’ Company (2018)
Slide 31: Strategic initiatives to drive growth
Strategic initiatives to drive growth 01 Continue leadership through organic growth in the core business of visa and consular services by leveraging competence Establish strong global presence in citizen 02 Deepen presence with existing clients by services on the back of established offering more
Slide 32: Historical Financial Performance
Historical Financial Performance 07 Fortune India’s Next 500 Companies (2019) Forbes Asia’s ‘Best under a Billion’ Company (2018)
Slide 33: Consistent growth with healthy margins
Consistent growth with healthy margins Rs in Cr Revenue EBIDTA & EBIDTA Margin 16% CAGR 200 25% 20% 150 20% 13% 13% 15% 100 789 804 7% 159 10% 635 505 50 108 82 5% 37 - 0% FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 PAT & PAT Margin 120 12% 13% 14% 100 12% 80 8% 10% 6% 8% 60 97 105 6% 40 4% 20 50 31 2%
Slide 34: Consolidated Statement of profit and loss
Consolidated Statement of profit and loss (Rs. Cr) FY17 FY18 FY19 Revenue 635 789 804 Gross Profit 167 295 266 (Gross Margin) 26% 37% 33% Operating expenses 85 136 157 EBITDA 82 159 108 (EBITDA Margin) 13% 20% 13% Finance Cost 6 12 10 Depreciation 26 40 19 Other Income 2.5 4.1 43 One-time income /(e
Slide 35: Consolidated Balance sheet
Consolidated Balance sheet ( Rs. Cr) Mar’17 Mar’18 Mar’19 Current Assets 186 387 394 Sundry Debtors 60 212 176 Cash and Bank 70 119 179 Financial Assets 57 55 38 Non-Current Assets 111 83 84 Property, Plant and Equipment 72 41 25 Intangibles 7 9 21 Financial Assets 32 30 29 Other Non Current Assets
Slide 36: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow (Rs. Cr) FY18 FY19 167 Operating profit before WC change 134 C/F from operating activities 56 (107) Change in Working Capital 25 136 (4) Direct taxes (23) (12) Purchase of property, plant and equipment and intangibles (31) - Goodwill (8) 2 Sale proceeds from prope
Slide 37: Thank You
For more information, please contact: Mr. Amit Sudhakar – CFO, BLS International THANK Corporate Office: 912, Indra Prakash Building, 21, Barakhamba Road, New Delhi – 110001 (India) Email: amit.s@blsinternational.net YOU Pareto Capital (Investor relations advisor) B/ 210, Kanakia Wall Street, Andher
BLS International Services — Q2 FY2020 Earnings Presentation on 6ix