Radiant Cash Management Services Limited · NSE:RADIANTCMS
Radiant Cash Management Services — Q2FY24 Earnings Presentation
40 slides from Radiant Cash Management Services's earnings presentation, Nov 7, 2023
Slide 1: Radiant Cash Management Services Limited - Exchange Intimation
RADIANT Cash Management Services Limited (ornery nowna fRall.t Cash Man mt Svec Pvt Lid (An 1ISO 9001-2015 Company) @2g inketek r €IN L149991N.200$PL€0$$748 G$TN 33A4ACCR9619120 PAN N6 AACCR96 19 RADIANTCMS/Q2/EarningsCall-Presentation/SE/2023-24 Date: 07.11.2023 To To Listing Department, Department
Slide 2: Investor Presentation Q2FY24 and H1FY24
RADIANT CASH MANAGEMENT SERVICES Investor Presentation Q2FY24 and H1FY24
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
RADIANT CASH MANAGEMENT SERVICES 01 Financial Performance 02 Business Overview 03 Key Performance Indicators 04 Team 05 Market Overview 06 Summary Financials
Slide 5: Financial Performance
RADIANT CASH MANAGEMENT SERVICES 01 Financial Performance
Slide 6: Q2FY24 and H1FY24 Results – Financial Highlights
Q2FY24 and H1FY24 Results – Financial Highlights Revenue EBITDA PAT -30% Y-Y -31% Y-Y Revenue growth impacted by slower 934 935 -29% Q-Q net retail point additions and revision in 220 -26% Q-Q 148 143 206 pricing model 6% Y-Y 153 102 EBITDA margins impacted due to I 883 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q
Slide 7: Q2FY24 and H1FY24 Results – Operational Highlights
Q2FY24 and H1FY24 Results – Operational Highlights Pin Codes Total Touch Points Cash Movement (bn) Added additional 353 pin codes to our coverage during the first half of FY24. 1,572 13,812 66,422 1,572 Total pin codes covered now stands at 63,420 13,812 1,304 1,304 13,459 49,980 Retail touch points
Slide 8: Revenues across Segments and Industries
Revenues across Segments and Industries SEGMENTS INDUSTRIES Q2FY23 Q2FY24 Q2FY23 Q2FY24 BFSI 29% Strong growth from SFBs, 33% 69% Cash Pick-Up & Delivery 66% Few points in NBFCs lost to competition J 15% E-Commerce 14% Growth affected due to loss of 1 small client 18% Network Cash Management 19% Org
Slide 9: Q2FY24 and H1FY24 Results – Financials Snapshot
Q2FY24 and H1FY24 Results – Financials Snapshot P&L INR mn Q2FY23 Q2FY24 Y-Y(%) Q1FY24 Q-Q(%) H1FY23 H1FY24 Y-Y(%) Revenues 883 935 5.9% 934 0.1% 1723 1868 8.4% Other income 2 20 17 5 37 Total Income 885 954 7.9% 951 0.4% 1,728 1,905 10.2% Employee Costs 147 178 20.9% 168 5.8% 286 346 20.8% As a % o
Slide 10: Business Overview
RADIANT 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 New businesses to add significantly to topline and bottom line touchpoints based on profitability 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 - �� 1 Problem How do we break the chain? • F
Slide 14: Acemoney: Integrate and grow a new Pillar
% Acemoney: Integrate and grow a new Pillar Revenue Channels r£ % =» One time AMC DMT Insurance UPI QR SAAS cost Charges Commissions Commissions PIDF income . ', % + Tie-ups Micro ATM/AEPS Loans Utility Services Prepaid card Coupons Offer & Transaction Margins Referral Amount (Bills/Recharges) MDR C
Slide 15: Unlocking Growth Potential in the Valuables Logistics Sector
Unlocking Growth Potential in the Valuables Logistics Sector Diversification into Valuables Management: Diamonds, Bullion, Demand for gold in India remains Pan-India presence to facilitate valuables’ logistics across the and Jewelry Sector resilient despite rise in gold prices country Jewelry Manufa
Slide 16: Company Overview
Company Overview - / \ I 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 • I I I I • I Diversified client base with
Slide 17: 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 o
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 66,422+ touch points covering 3,182 presence Uttarakhand 13,812 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 Radiant's Revenues from tier 2 and tier 3+ towns 89% 81% 81% 87%
Slide 20: Robust Risk Management Framework
Robust Risk Management Framework Cash Loss as proportion of Cash movement (%) A stringent risk management policy – Combination of Human Touch and Technology 31 bps Rigorous focus Automation and API integration ensuring real time on risk tracking 14 bps mitigation and prevention Clear escalation fram
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 EE 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 associ
Slide 23: Key Performance Indicators
RADIANT CASH MANAGEMENT SERVICES 03 Key Performance Indicators
Slide 24: Key Performance Indicators
Key Performance Indicators PARTICULARS FY21 FY22 FY23 H1F24 PARTICULARS FY21 FY22 FY23 H1F24 Operational Assets Customer Base ----------------------------------------�-•! Cash Vans 694 739 840 861 « t Clients 56 65 89 120 - -- -- -- ----- -- -- -- ---- -- -- -- -- -- ----- -- -- -- -- -- -- -- -- --
Slide 25: Team
RADIANT 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 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 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
RADIANT 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% 11.3% 12.
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 96% 86% 54% 47% 39% 41% - 0 3mn+ addressable retail touch points 85% of retail mark
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 Rest of India 514 iii#ii Next 50 7
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% -----------.
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 0.11 ---- 0.45 FY2021 ■ Retail us
Slide 36: Historical Summary Financials
RADIANT CASH MANAGEMENT SERVICES 06 Historical Summary Financials
Slide 37: Income Statement
Income Statement Particulars ( Rs million ) FY21 FY22 FY23 H1FY24 I Revenue from operations 2,217 2,860 3,549 1,868 II Other income 25 9 26 37 III Total Income ( I + II ) 2,242 2,870 3,575 1,905 IV Expenses Employee benefits expenses 390 497 605 346 Finance costs 20 37 9 3 Depreciation and Amortisat
Slide 38: Balance Sheet
Balance Sheet Particulars (Rs million ) FY21 FY22 FY23 H1FY24 Particulars (Rs million ) FY21 FY22 FY23 H1FY24 EQUITY AND LIABILITIES . · · . ASSETS ·. · .··..."6·@ --4-,-�-e_ ,.._ o --------------------------------------------------. ------------------ .. .,__' ---•--'l:o--,-- ... -- .... -- ..... \
Slide 39: Cash Flow Statement
Cash Flow Statement Particulars (Rs million) FY21 FY22 FY23 H1FY24 Particulars (Rs million) FY21 FY22 FY23 H1FY24 Cash Flows from Operating Cash Flows from Investing Activities Activities Purchase of Property, Plant & Equipment , Intangibles (incl (31) (61) (59) (99) Profit Before Tax 450 521 843 33
Slide 40: Thank You
RADIANT CASH MANAGEMENT SERVICES THANK YOU Website tl 17 It www.radiantcashservices.com ► 1ill ,,:;:mi '•.·, ..1.111 ,'"_ .• tr - ..... . [jj l ttttti It # tifff f{f u ¢ it IHIl II Email « j a l II lIHH I At t Ill I toy s ·ii__ zzt imj. I II[LI I l lI illlllll l "":11111- ff4l en jg investorrelation
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