Vakrangee Limited · NSE:VAKRANGEE
Vakrangee — Q1 FY2022-23 Earnings Presentation
44 slides from Vakrangee's earnings presentation, Jul 7, 2022
Slide 1: Results Update Presentation Q1 FY2022-23 cover letter
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Slide 2: The Assisted Digital Convenience Store - Q1 FY2022-23 Results Update
THE ASSISTED DIGITAL CONVENIENCE STORE “GO TO MARKET PLATFORM” : BUILDING INDIA’S LARGEST LAST MILE DISTRIBUTION PLATFORM VAKRANGEE LIMITED Q1 FY2022-23 - RESULTS UPDATE July 7, 2022
Slide 3: Disclaimer
DISCLAIMER This presentation has been prepared by Vakrangee Limited (“Vakrangee” or “VL” or the “Company”) solely for your information and for your use and may not be taken away, reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organ
Slide 4: Table of Contents
TABLE OF CONTENTS Results Performance Update 04 Strategy Update 12 Demerger Update 24 Company Overview 28 Update on Sustainability ESG Initiatives 38 Annexure : Kendra Evolution 41 3
Slide 5: Results Performance Update
RESULTS PERFORMANCE UPDATE 4
Slide 6: Key Highlights – Q1 FY2022-23 (Q-o-Q Basis)
RESULTS PERFORMANCE UPDATE Key Highlights – Q1 FY2022-23 (Q-o-Q Basis) REVENUE FROM OPERATIONS GROSS PROFIT & GROSS MARGIN PROFIT AFTER TAX (PAT) In Rs Mn In Rs Mn In Rs Mn 461.4 2260.3 301.2 2088.1 22.1% 213.8 9.5% 8.2% -85.0% 45.3 Q4 FY2021-22 Q1 FY2022-23 Q4 FY2021-22 Q1 FY2022-23 Q4 FY2021-22 Q1
Slide 7: Results Performance Update
RESULTS PERFORMANCE UPDATE • Strong Revenue Growth : Strong growth witnessed in Revenues due to increase in Number of outlets as well as services becoming normalized and operational post pandemic. • Our Focus has been on Market Expansion & to Strengthen our First Mover Advantage • Near Term Profitab
Slide 8: Consolidated Financial Statements
CONSOLIDATED FINANCIAL STATEMENTS Key Profit & Loss Statement Items Particulars (Rs. Mn.) Q1 FY2022-23 Q1 FY2021-22 YoY% FY2021-22 Revenue from Operations 2,260.3 1540.2 46.8 7,786.9 Total Expenses 2213.9 1248.9 77.3 6,393.7 EBIDTA 104.2 340.8 (69.4) 1,586.9 Profit before Tax (PBT) 65.0 305.4 (78.7)
Slide 9: Vakrangee Kendra - Performance Update
VAKRANGEE KENDRA - PERFORMANCE UPDATE VAKRANGEE : PHYSICAL + DIGITAL ECO-SYSTEM “GO TO MARKET PLATFORM” : BUILDING INDIA’S LARGEST LAST MILE DISTRIBUTION PLATFORM PERFORMANCE UPDATE FOR Q1 FY2022-23 Total No. of Outlets Presence in States/UTs Presence in districts Presence in Tier IV & VI Our Presen
Slide 10: Gross Transaction Value Contribution
VAKRANGEE KENDRA – PERFORMANCE UPDATE Q1 FY2022-23 – GROSS TRANSACTION VALUE CONTRIBUTION (RS. MN.) Margin Profile % * E-Commerce 2,125 2 - 15% ATM 31,810 Rs. 17/ Fin Txn BFSI 1,00,433 0.25 - 0.40% • BFSI and ATM services witnessed robust QoQ as well as YoY growth as we get back to pre-covid growth
Slide 11: Case Studies: NextGen Top Performers
CASE STUDIES : NEXTGEN TOP PERFORMERS Franchisee – JITENDRA GAHALOT from a JITENDRA Tier-6 location of Rajasthan have Earned Total Transaction Value - ` GAHALOT `3,05,11,600 `98,349 in just month from BFSI – Banking Services Number of Financial Transaction - PREM Franchisee – PREM SHANKAR JAT from a
Slide 12: Focussed to Build Pan-India Presence Covering 100% Postal Codes
FOCUSSED TO BUILD PAN-INDIA Within 12-18 Months PRESENCE COVERING 100% POSTAL CODES - 75,000+ Outlets - 19,000+ Postal codes - 36 States / UTs - ~70% Tier V & VI - 740 + Districts Q1 FY 2022-23 - 22,858 Outlets - 33 States / UTs - 564 Districts With Exclusive Branded Format Stores, - 5,627 Postal co
Slide 13: Strategy Update
Vakrangee / ’ STRATEGY UPDATE
Slide 14: Update on New Business Partnerships
UPDATE ON NEW BUSINESS PARTNERSHIPS SUCCESSFULLY ADDED NEW BUSINESS PARTNERSHIPS WITH SOME OF THE MARQUEE GLOBAL PLAYERS • Partnered with Decathlon Sports India, a world • Partnered with Allianz Partners to Provide leader in sports equipment’s to offer a complete Assisted Total Healthcare services a
Slide 15: Launch of New Pricing for All Kendra Models
LAUNCH OF NEW PRICING FOR ALL KENDRA MODELS • LAUNCH OF NEW ATTRACTIVE PRICING FOR ALL KENDRA MODELS • TO LEAD TO QUICK FRANCHISEE PAYBACK AS WELL AS DRIVE STRONG FRANCHISEE INTEREST • RECEIVED OVERWHELMING RESPONSE & ON TRACK TO ACHIEVE THE TARGET OF 75,000 KENDRA 14
Slide 16: Launch of Master Franchisee Scheme
LAUNCH OF MASTER FRANCHISEE SCHEME • LAUNCH OF NEW ATTRACTIVE MASTER FRANCHISEE SCHEME : A UNIQUE LIFETIME EARNING OPPORTUNITY WHEREBY THE MASTER FRANCHISEE IS ELIGIBLE TO EARN A % OF ACTIVE FRANCHISEE’S EARNINGS ON A ON- GOING PERPETUAL BASIS • DISTRICT LEVEL MASTER FRANCHISEE BEING APPOINTED. THIS
Slide 17: Strategy Update – Digital Banking
STRATEGY UPDATE – DIGITAL BANKING DIGITAL BANKING : MOVING TOWARDS NEO BANK – VAKRANGEE WELL PLACED TO ENTER THE NEO BANKING SEGMENT While currently nascent, the Indian Neobanking userbase is expected to grow fast – at 80%+ yearly till FY26 Indian digital banking userbase +x% CAGR In Mn, FY 2017, 20
Slide 18: Strategy Update – Digital Banking
STRATEGY UPDATE – DIGITAL BANKING MOVING TOWARDS TRANSITIONING INTO A NEO BANK – VAKRANGEE WELL PLACED TO ENTER THE NEO BANKING SEGMENT PERFORMANCE FOR BANKING SERVICES Q1 FY2021-22 FY2021-22 KEY DIFFERENTIATORS : DIGITAL AS WELL AS PHSYICAL Number of Bank ~ 0.4 ~ 2.7 ECO-SYSTEM IN PLACE TILL THE Ac
Slide 19: Strategy Update – Digital Healthcare
STRATEGY UPDATE – DIGITAL HEALTHCARE Digital (eHealth) Healthcare Opportunity: eHealth sector has been witnessing rapid growth, whereas the overall penetration rates across segments still remain low, providing Huge Long Term Growth potential !! eHealth Market GMV1 Annual India eHealth Penetration eP
Slide 20: Strategy Update – Digital Healthcare
STRATEGY UPDATE – DIGITAL HEALTHCARE DIGITAL HEALTHCARE OPPORTUNITY : • Current Rural consumer requires assistance to understand different healthcare services • Limited availability of physical doctors in rural locations • Lack of access to Health Infrastructure & Expert Consultation PERFORMANCE FOR
Slide 21: BharatEasy Mobile Super App Update
BHARATEASY MOBILE SUPER APP UPDATE • Vakrangee would be launching an online digital platform to enable seamless services for the consumer at the comfort of their homes. Through this, company has evolved into the unique O2O (Online to Offline) platform, whereby there is Assistance available through t
Slide 22: Business Model: Our Unique Offering
BUSINESS MODEL : OUR UNIQUE OFFERING Customer Strong Value Proposition • All in One Super App Platform • Access to Physical Store network - Trust & Comfort for Customers especially in Rural India Unique Convenience Features : Leveraging the Vakrangee Eco-System • Store Pick Up Facility • Pay at Stor
Slide 23: Business Structure - VDVL
BUSINESS STRUCTURE - VDVL BUSINESS SERVICE PARTNERS VDVL : VAKRANGEE DIGITAL VENTURES LTD DIRECT TO CONSUMER B2B MODEL (D2C) BHARATEASY MOBILE BHARATEASY B2B SUPER APP MOBILE SUPER APP EXCLUSIVE ACCESS TO VAKRANGEE KENDRA PHYSICAL NETWORK FOR PHYSICAL ASSISTANCE STRONG BRAND LEVERAGING EXISTING ON-G
Slide 24: Business Structure - VDVL
BUSINESS STRUCTURE - VDVL 100% SUBSIDIARY VDVL VAKARNGEE LTD (TO HOST ONLY THE MOBILE APP : D2C AS WELL AS B2B APP) BC BANKING SERVICES NEO-BANKING SERVICES (PUBLIC / PRIVATE) (COMPLETE BFSI) DMT SERVICES, LIC & SSS DIGITAL HEALTHCARE INSURANCE SERVICES ONLINE SHOPPING / TRAVEL / ATM SERVICES ONLINE
Slide 25: Demerger Update
Vakrangee / ’ DEMERGER UPDATE
Slide 26: Demerger Update
DEMERGER UPDATE • As on June 19, 2021 the Board of Directors of Vakrangee Limited had approved Demerger of its digital Division. • However, The Board of Directors have now after due deliberations and detailed discussions, taking into consideration the best interest of all its stakeholders, have fina
Slide 27: Proposed Demerger Structure
PROPOSED DEMERGER STRUCTURE PRE-DEMERGER 1 2 POST- VL E-GOVERNANCE & IT VAKRANGEE LIMITED – SOLUTIONS BUSINESS DEMERGER CURRENT LISTED ENTITY DIVISION – TO BE LISTED ARRANGEMENT TO INCLUDE :- TO INCLUDE :- • VAKRANGEE KENDRA POST- • E-GOVERNANCE BUSINESS BUSINESS (PHYSICAL DEMERGER • IT/ITES BUSINES
Slide 28: Vakrangee Kendra Business – Post Demerger
VAKRANGEE KENDRA BUSINESS – POST DEMERGER POST DEMERGER : VAKRANGEE LIMITED TO EMERGE AS PURE RETAIL CONSUMER CENTRIC BUSINESS RETAIL CONSUMER STRONG RURAL BRAND UNIQUE PHYSICAL + CENTRIC BUSINESS PRESENCE DIGITAL PLATFORM SCALABLE FRANCHISEE DEBT FREE BALANCE ASSET LIGHT MODEL LED MODEL SHEET HIGH
Slide 29: Company Overview
Vakrangee / ’ COMPANY OVERVIEW
Slide 30: NextGen Vakrangee Kendra – Scope of Services
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES Banking , ATM & Insurance Financial Services / Fintech E-Commerce / Online Travel Tele Medicine / Pharmacy PAN INDIA PRESENCE : • 84% IN TIER 4-6 LOCATIONS PHYSICAL + DIGITAL • 5,627 POSTAL CODES ECO-SYSTEM • 564 DISTRICTS “GO TO MARKET PLATFORM” : BUILDI
Slide 31: NextGen Vakrangee Kendra – Scope of Services (BFSI & ATM)
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES BFSI & ATM SERVICES • ATM Cash Withdrawal • Non-Financial Transactions (White Label ATM License) • Opening of Online Demat & Trading Account • Money Transfer • Lead Generations of Personal / Home / Business Loans • Pan Card Service • CIBIL Score service •
Slide 32: NextGen Vakrangee Kendra – Scope of Services (E-Commerce)
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES ASSISTED E-COMMERCE SERVICES • Online Shopping of Goods • Telemedicine services • Online Shopping of Medicines • Mobile/DTH Recharge • Bill Payments • E-Mitra services in Rajasthan (Only for Rajasthan) • Train Ticket Booking • Bus Ticket Booking • Flight/
Slide 33: E-Commerce Marketing Initiatives
E-COMMERCE MARKETING INITIATIVES Link to the Co-Branded Advertisement Campaign - Amazon & Vakrangee : https://www.youtube.com/watch?v=MPtZ_c62 Odg https://www.youtube.com/watch?v=- AJarKHI94c 32
Slide 34: Formats of Vakrangee Kendra
FORMATS OF VAKRANGEE KENDRA VAKRANGEE KENDRA: WITH ATM, WITHOUT ATM AND ONLY ATM MODEL Update on Vakrangee Kendra Model:- • As the Bouquet of services have increased over the last few years , the viability of the kendra has increased on a standalone basis resulting into an Exclusive store format. •
Slide 35: Vakrangee Kendra - Key Features
VAKRANGEE KENDRA - KEY FEATURES KEY FEATURES • Exclusive store model with same service level and same STORE EXCLUSIVITY & Customer experience CONSISTENT • Standardized layout & design by L&H (Lewis & Hickey) BRANDING • Uniform and Consistent Branding for Higher brand recall and visibility • ATM at s
Slide 36: NextGen Vakrangee Kendra Model
NEXTGEN VAKRANGEE KENDRA MODEL 35
Slide 37: Huge Untapped Market: Overall Market Potential
HUGE UNTAPPED MARKET: OVERALL MARKET POTENTIAL POPULATION 1.35 BILLION POLLING STATIONS 1 MILLION TOTAL NO OF VILLAGES 6,62,438 TOTAL NO OF GRAM PANCHAYAT 2,55,376 TOTAL NO OF URBAN WARDS 75,535 TOTAL OUTLET POTENTIAL 3,30,911 36
Slide 38: Store Economics of a NextGen Kendra
STORE ECONOMICS OF A NEXTGEN KENDRA NextGen Outlet Estimated Avg. Gross Revenue per Month Revenue Per Store Rs. 50k – 80k* NextGen Outlet Estimated Ranging from 65:35 to 80:20 based on Commission Sharing Ratio Service Type Vakrangee Margins NextGen Outlet Estimated Operational Gross Level – 18-20% P
Slide 39: Update on Sustainability ESG Initiatives
UPDATE ON SUSTAINABILITY ESG INITIATIVES 38
Slide 40: Sustainability ESG Performance Update
SUSTAINABILITY ESG PERFORMANCE UPDATE VAKRANGEE ESG PERFORMANCE UPDATE VAKRANGEE RECOGNIZED AS A ESG VAKRANGEE EARNS BRONZE CLASS SPOT GLOBAL 50 TOP RATED COMPANY BY IN SUSTAINABILITY YEARBOOK 2022 BY SUSTAINALYTICS S&P GLOBAL • In 2022, Vakrangee has been recognized by • Vakrangee Limited has been
Slide 41: Key Initiatives: Sustainability Impact & ESG
KEY INITIATIVES : SUSTAINABILITY IMPACT & ESG Being Responsible • Being one of the largest franchisee-based, multi-service retail network, Vakrangee is focused on creating India’s extensive network of last-mile retail outlets at every & Social Conscious postal code in the country, enabling Indians t
Slide 42: Annexure: Kendra Evolution
ANNEXURE : KENDRA EVOLUTION 41
Slide 43: Kendra Evolution
KENDRA EVOLUTION PHASE 1: INITIALLY AN E- PHASE 2: EVOLVED TO A PHASE 3: EVOLVED TO MULTI PHASE 4: EXCLUSIVE NEXTGEN GOVERNANCE PLAYER BANKING BC POINT MODEL SPECIALITY STORE MODEL DIGITAL CONVENIENCE STORE PHASE 1: CSC & E-MITRA PHASE 4 : NEXTGEN KENDRA PHASE 2 : BANKING BC PHASE 3 : MULTI-SPECIALI
Slide 44: Thank You
Vakrangee / ’ Thank You