Virinchi Ltd. · NSE:VIRINCHI
Virinchi — Investor Presentation (December 2016)
53 slides from Virinchi's investor presentation, December 2016
Slide 1: Investor Presentation
Investor Presentation December 2016
Slide 2: Disclaimer
Disclaimer You are about to review presentations, reports, filings and/or other materials regarding Virinchi Limited (BSE: VIRINCHIQ) that contain time-sensitive information. The information contained therein is only current as of the date thereof. Virinchi expressly disclaims any obligation to revi
Slide 3: Contents
Contents • Company Overview • Business Overview – Fintech Products – IT Services – Healthcare Delivery & Services • Financial Overview 3
Slide 4: Executive Summary
Executive Summary Global leader in the IT 1000 seater, 200,000 sft own Diversified Fintech, products for Short Term GDC, 450,000 sft hospital, IT & Healthcare Financial Services with 70,000 sft Software Dev, Group Annuity revenue 200 seater New Jersey office Downloadable Mobility based Virtual Over
Slide 5: India and USA businesses
USA India Fintech Products & IT Services Healthcare Delivery & Services Virinchi Hospitals owns and runs state of art multispecialty hospitals in Qfund is a technology leader in the India. The hospitals are unique in short term mortgage industry, delivering advanced medical managing around 5000+ POS
Slide 6: State of the Art Infrastructure across multiple locations in India & US
State of the Art Infrastructure across multiple locations in India & US US Corporate HQ, Edison , NJ Key Balance Sheet Assets Global Delivery Center, Hyd • Land: 11 acres campus at Hakimpet in Hyderabad with Banjara Hills, 1000 seater, 100,000 sft , Global 1000 seater Nashville Dallas Office, Dev Ce
Slide 7: Founded in 1991, BSE listed in 2001, IT and Healthcare group
Founded in 1991, BSE listed in 2001, Rs. 218 cr. IT and Healthcare group VIRINCHIBQ.BO vs BSE Sensex (Normalized) Financial Highlights (FY2016) Revenue from operations Rs. 218.34 cr. EBIDTA Rs. 33.21 cr. PAT Rs.16.21 cr. Cash EPS (Rs/Share) 15.72 P/CEPS Multiple 4.76 Market Cap* Rs. 134.63 cr. 7 * B
Slide 8: Founder - Promoter
Founder - Promoter Key Responsibilities • Strategic Leadership • Investor and Media Relations • New Business Growth • Leadership Team Vish Kompella Promoter & Chairman Emeritus • IIT Madras, • First Generation Parallel Entrepreneur with multiple investments in IT, Hospitals, Education, Life Sciences
Slide 9: Management Team
Management Team Satyajeet Prasad Vishal Ranjan Neeraj Kumar CEO Group Head, New Businesses Head IT Services, North America • IIT Kharagpur, IIM • IIT Delhi, IIM Calcutta • IIT Delhi, IIM Lucknow, CFA • Director Strategy, AXA Lucknow (Rank Holder) • Management Consultant Worldwide (London & New • GE
Slide 10: Management Team
Management Team Dr. NSVV Murty Srinivas Myana Group Medical Director ED & CMO, Virinchi Healthcare • MBBS,MD,PDCC,CCST(UK),PGD M(Diab),FICCM • ICWAI, ACS • Consultant Anesthetist (UK), • 20 Years experience in tax, Cardiac Anaesthesia And Critical finance, investment banking and Care – (17 years) re
Slide 11: Doctor's Team
Doctor’s Team Dr Sumeet Sinha Dr Sudheer Dr Subodh Raju Dr Muralidhar Joshi Dr Krishna Mohan MC MBBS, MD, DM Nadimpalli M.S., M.Ch MBBS, MD MD, DM Sr Consultant MD(Resp.Med), Consultant (Anaesthesiology), DNB (Gastroenterology) Sr. Interventional MRCP(GeneralMe Neurosurgeon and (Anaesthesiology)Dire
Slide 12: Contents
Contents • Company Overview • Business Overview – Fintech Products – IT Services – Healthcare Delivery & Services • Financial Overview 12
Slide 13: Global Market Leader in FinTech for Retail Micro Credit Industry
Global Market Leader in FinTech for Retail Micro Credit Industry “The Small Dollar Loans” Pay Day Loans Line of Credit Installment Loans Pawn Loans Auto Equity Loans Check Cashing Online Loans Hybrid Loans Loan Lead Integration Loan Processing Loan Underwriting & Integration Banking Integrations Set
Slide 14: ~5% of all Short Term US Lending is through Qfund
~5% of all Short Term US Lending is through Qfund Significant Growth Opportunity Exists while consolidating the Leadership Position Monthly Loans Processed through Qfund 14
Slide 15: Consistent revenue growth led by new ASP licenses & Custom Services
Consistent revenue growth led by new ASP licenses & Custom Services Qfund revenue per Quarter (USD ‘000) 15
Slide 16: Heavily Regulated Industry lead to Evolving Strategies
Heavily Regulated Industry lead to Evolving Strategies Continued regulatory oversight lead to shifting goal posts, creating Innovation Entry Barriers • CFPB revised regulations on refinance, APR and Lenders’ Profile lead to Industry innovations on products and business models • Increasing consolidat
Slide 17: Leveraging Qfund for IT products across Consumer Lending industry
Leveraging Qfund for IT products across Consumer Lending industry Lending, Underwriting, Loan Servicing and associated technology core to all loans IT in Retail Lending ($15 bn) Loan Management Point of Sale Marketing & CRM Solution Payment Solutions Retail Consumer Lending Industry ($3.2 tn) Qfund
Slide 18: Transaction level Big Data extremely valuable to develop underwriting intelligence
Transaction level Big Data extremely valuable to develop underwriting intelligence 18
Slide 19: Virinchi plans to expand footprint across Retail Lending by PayEz & vMOD
Virinchi plans to expand footprint across Retail Lending by PayEz & vMOD Technology already replacing critical parts of the Lending Value Chain Short Term Retail Consumer Lending Traditional Lending Industry Industry … goes Consumer Payday Loans, Installment Loans, Installment Loans, Consumer Financ
Slide 20: Contents
Contents • Company Overview • Business Overview – Fintech Products – IT Services – Healthcare Delivery & Services • Financial Overview 20
Slide 21: Fast Growing full services IT Portfolio through KSoft Systems
Fast Growing full services IT Portfolio through KSoft Systems Competency built around High Quality Onshore and Offshore Personnel 21
Slide 22: IT Services revenue has grown 6 times in 24 months
IT Services revenue has grow 6 times in 24 months Monthly Revenue ($ 000) 6x 22
Slide 23: Senior Resources to build Wide Delivery Capabilities
Senior Resources to build Wide Delivery Capabilities Significant focus on ERP and SMAC technologies Over 150 employees, including 100 SAP & Oracle consultants are based out of the US 23
Slide 24: Technology, Telecom & Banking clients contribute > 50% of topline
Technology, Telecom & Banking clients contribute > 50% of topine
Slide 25: Six competencies form focus for investments
Six competencies form focus for investments Business Development built around product and domain based sales SOCIAL MOBILITY ANALYTICS •Digital Marketing •Healthcare •Life Sciences •Social Management •Enterprise Mobility •Financial Services •Games •Business Intelligence Focus Area •CRM •Predictive T
Slide 26: Contents
Contents • Company Overview • Business Overview – Fintech Products – IT Services – Healthcare Delivery & Services • Financial Overview 26
Slide 27: Healthcare Vision: To put India in World's top 5 in Healthcare Quality index
Healthcare Vision: To put India in World’s top 5 in Healthcare Quality index Mission: To deliver healthcare to the nation by enabling doctors to use healthcare big data generated by universe of biomarkers, drug exposures and interventions. Current Milestones • 350,000 sft, 600 bed flagship hospital
Slide 28: Virinchi Healthcare to grow to 800 bed hospital chain post merger
Virinchi Healthcare to grow to 800 bed hospital chain post merger Acquisition of Existing Bristlecone Hospitals in process Two fast growing hospitals adding to 225 beds Experience of well-oiled >500 payers & city-wide State-of-art medical infrastructure NABH ready processes referral partnerships 50,
Slide 29: Bristlecone has consistently delivered strong operating metrics
Bristlecone has consistently delivered strong operating metrics 50,000+ patients, 80% average occupancy
Slide 30: Contents
Contents • Company Overview • Business Overview – Fintech Products – IT Services – Healthcare Delivery & Services • Hospitals • Healthcare Services • Financial Overview 30
Slide 31: Virinchi Hospital, Banjara Hills, Hyderabad
Virinchi Hospital, Banjara Hills, Hyderabad 600 beds, Four Towers, 350,000 sft C.O.N.N.E.C.T.™ Super specialities Landmark location @ Banjara Hills 140 critical care beds, 11 OTs, 2 Cath
Slide 32: Market Positioning on Science and Technology Innovations
Market Positioning on Science and Technology Innovations Alignment across Architecture, Operations, Equipment & Branding Cell Correct Therapy to the last cell Right to Science bringing all medical science innovations at Indian Cost Structure Virinchi Health Universe Connecting clinics, labs, patient
Slide 33: Virinchi Hospital Specialty Departments
Virinchi Hospital Specialty Departments
Slide 34: Eleven Operation Theatres, One Forty ICU Beds
Eleven Operation Theatres, One Forty ICU Beds Higher share of Facilities Commensurate to Super speciality focus Integrated OT-CSSD-Transplant Complex Class 100,000 Clean Room ICU • Amongst the Largest OTs in the Industry • 100% Digital Critical Care with integrated • Laminar Flow with Highest Lumino
Slide 35: State of Art Diagnostics with Global Leading Technology
State of Art Diagnostics with Global Leading Technology All Equipment procured with an Eye on imminent Medical Research and innovation 3 Tesla MRI Spectral 128 Slice PET CT with Clear.Q Image Reconstruction Ceiling mounted Cath Lab with IVUS & FFR packages 35
Slide 36: Comprehensive Mobility Portfolio – unparalleled in Industry
Comprehensive Mobility Portfolio –unparalleled in Industry In-house Mobility Expertise leveraged to Provide unmatched Patient Experience 36
Slide 37: Best in Class In-house HIS System
Best in Class In-house HIS System Forms the backbone EMR & HIS for paperless IT system 37
Slide 38: Unique innovations to build competitive advantage
Unique innovations to build competitive advantage Patient Engagement through Data Analytics at Core of Business Model Innovation Framework Video Consultation Event History Logging Business Medical Events Bookkeeping Model Low Cost Per Bed Model Innovation Generation Lasting Infrastructure Process He
Slide 39: Efficient Business Models to drive sustained profitability
Efficient Business Models to drive sustained profitability Highest Capital Efficiency Full Time Senior Medical Team on Salary • Zero unproductive assets • Complete control on patient • Land-Building on Lease • In-house commitment to • Adequately capitalized with better outcome and strong Group Cash
Slide 40: Integrated Healthcare Delivery to improve patient experience
Integrated Healthcare Delivery to improve patient experience Personalized Preventive Healthcare Public Health Evidence Based Treatment • Multi visit patient health • Leverage public health record data for population • Personalized preventive study and statistical healthcare plan analysis • Proactive
Slide 41: State of Art Healthcare Technology to stay ahead of curve
State of Art Healthcare Technology to stay ahead of curve Mobility backed Medical Devices Color Changing Dressing • Wearables • Dressing & Plaster • Wrist Monitors change colours on • Smartphone Ultrasounds infections • Remote ECG/ BP • Possible to check Monitors wounds without • Integrated Apps env
Slide 42: Innovative Marketing Strategies for differentiation
Innovative Marketing Strategies for differentiation Own/ Partner Hospitals & Outreach Centres Mobility app & Patient Portal • Chain of 15 Outreach centres • Integrated mobility app and partner hospitals to for Patient care coincide hospital launch management including • Extend growth to over 50 EMR/
Slide 43: Smart Processes to deliver seamless excellence in Care
Smart Processes to deliver seamless excellence in Care Technology Integrated Ecosystem IT enabled Checklist based Processes • Patient care across • Unique IT enabled multiple technology checklist based business platform on mobiles, processes e.g. admission, tablets, desktops, cloud, surgery, dischar
Slide 44: Contents
Contents • Company Overview • Business Overview – Fintech Products – IT Services – Healthcare Delivery & Services • Hospitals • Healthcare Services • Financial Overview 44
Slide 45: Virinchi Learning
Virinchi Learning NSDC funded project to upskill healthcare workers Select Courses • Govt. of India funded project to upskill Healthcare Workers in the Region OT Technician • Govt. of India laid course curriculum Anaesthesia Technician Dialysis Technician • Course s ranging from OT nurses, Phlebotom
Slide 46: V-Connect
V-Connect Virtual Hospital ecosystem on Mobile
Slide 47: Virinchi Combinatorics & Systems Biology
Virinchi Combinatorics & Systems Biology A Multi-dimensional Time Based Patient data Analysis drive Evidence Based Medication History, Physical Clinical Research Gene Systemic Biomarkers, Phenotype Mapping Optimization Demographics Radiology, Pharma / Social Data Histo Order Sets Cohort Patient Disc
Slide 48: Contents
Contents • Company Overview • Business Overview – Fintech Products – IT Services – Healthcare Delivery & Services • Financial Overview 48
Slide 49: Over past 18 months, Virinchi has consistently outperformed Sensex
Over past 18 months, Virinchi has consistently outperformed Sensex VIRINCHIBQ vs ^BSESN NSDC funding received Virinchi Healthcare Incorporated Management change in US & India 68.75 cr Debt raised for Healthcare • Zero Dilution by Promoter over past 10 years • Trading volume = 48,500 • Book Value/ Sh
Slide 50: Virinchi has seen consistent growth in Revenue and EBIDTA
Virinchi has seen consistent growth in Revenue and EBIDTA 15% EBIDTA translates to 7.4% PAT margin Revenue (in Rs Cr.) Revenue Build up – 2016 (in Rs Cr.) CAGR = 29% 79 112 79 113 139 218 218 27 FY2013 FY2014 FY2015 FY2016 CONSOL'16 QFUND'16 KSOFT'16 OTHERS'16 EBIDTA (in Rs Cr.) Profitability 2016(i
Slide 51: PAT and EPS growth has exceeded industry benchmarks
PAT and EPS growth has exceeded industry benchmarks 7% PAT margin PAT (in Rs Cr.) EPS (Rs/ Share) CAGR = 45% CAGR = 45% CEPS (Rs/ Share) CAGR = 27% 2016-17 HY Financial Highlights Operating Income (Rs Cr) 115.88 EBITDA (Rs Cr) 21.27 EBITDA Margin 18.35% PAT (Rs Cr) 8.14 Net Margin 7.02% EPS - Basic
Slide 52: Strong and Liquid Balance Sheet
Strong and Liquid Balance Sheet Net Worth (in Rs Cr.) Return on Equity (%) 124 14% Reserves Equity 107 92 93 8% 106 74 75 89 4% 4% 18 18 18 18 FY2013 FY2014 FY2015 FY2016 FY2013 FY2014 FY2015 FY2016 Capital Employed (in Rs Cr.) Return on Capital Employed (%) 234 11% 10% Debt LT DEBT = 110 8% Equity
Slide 53: Contacts
Contacts Ravindranath Tagore tagore@virinchi.com +91 98666 12417 Virinchi Corporate Center, Road #1, Banjara Hills, Hyderabad 500049 www.virinchi.com 53