Radiant Cash Management Services Limited · NSE:RADIANTCMS
Radiant Cash Management Services — Q4 FY24 Earnings Presentation
36 slides from Radiant Cash Management Services's earnings presentation, May 23, 2024
Slide 1: Filing cover letter to stock exchanges
RADIANTCMS/Q4/EarningsCall-Presentation/SE/2023-24 Date: 23.05.2024 To To Listing Department, Department of Corporate Services, National Stock Exchange of India Limited BSE Limited C-1, G-Block, Bandra - Kurla Complex Phiroze Jeejeebhoy Towers, Dalal Street, Bandra (E), Mumbai – 400 051 Mumbai – 400
Slide 2: Investor Presentation Q4FY24 and FY24
Investor Presentation Q4FY24 and FY24
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: Contents
01 Financial Performance 02 Business Overview 03 Key Performance Indicators 04 Team 05 Market Overview 06 Summary Financials
Slide 5: Financial Performance
) RADIANT Financial Performance
Slide 6: FY24 Results – Standalone Financial Highlights
FY24 Results – Standalone Financial Highlights Revenue EBITDA PAT 3,903 897 627.0 3,575 2,870 691 454.0 595 2,242 498 382.0 324.33 FY24 has been a period of investment and consolidation RoCE continue to be healthy at 22%+ and is among the highest in the FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 F
Slide 7: Operational Highlights
Q3FY24 and 9MFY24 Results – Operational Highlights Pin Codes Total Touch Points Cash Movement (bn) Added additional 911 pin codes to our coverage during FY24. Total pin codes covered now stands at 14,370 Retail touch points coverage also increased by 6,514 during FY24 to 69,934 Total cash movement f
Slide 8: Revenues across Segments and Industries
Revenues across Segments and Industries SEGMENTS INDUSTRIES FY23 FY24 FY23 FY24 31.1% BFSI 33.3% 69.1% Cash Pick-Up & Delivery 65.5% Continued healthy growth E-Commerce 14.6% Stable Performance 14.4% 18.1% Network Cash Management 19.1% Organized Retail 15.2% Consistent strong growth 17.8% E-Com Logi
Slide 9: Q4FY24 and FY24 Results – Standalone Financials Snapshot
Q4FY24 and FY24 Results – Standalone Financials Snapshot P&L INR mn Q4FY24 Q4FY23 Y-Y(%) Q3FY24 Q-Q(%) FY24 FY23 Y-Y(%) Revenues 973 897 8.5% 1004 (3.1%) 3845 3549 8.4% Other income 12 17 9 57 26 Total Income 985 914 7.8% 1013 (2.8%) 3,903 3,575 9.2% Employee Costs 194 157 23.7% 191 1.2% 731 605 20.
Slide 10: Business Overview
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 Capitalize on strong growth in Organized retail, BFSI and Ecom New businesses to add significantly to topline and bottom line segments FY24: Higher cape
Slide 12: Our Strategic Pillars
Our Strategic Pillars Consolidate and Grow the Core Business Move up the Value Chain with a • Capitalize on core business growth in Organized Retail, BFSI Phygital Platform and Ecom Segments • Secure physical network across 14,300 pin codes • Gross addition of 12,000 new touchpoints; restore lost po
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 POS Machines, AMC DMT Insurance UPI QR Soundbox Charges Commissions Commissions PIDF income Tie-ups Micro ATM/AEPS Loans Utility Services Prepaid card Coupons Offer & Transaction Margins Referral Amount (Bills/Recharges) MDR Cross selling re
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 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 Diversified client base with Significantly built long standing relatio
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 69,930+ touch points covering 3,628 presence Uttarakhand 14,370 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% 80% Strong 87% 66%
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 Rigorous focus Automation and API integration ensuring real time on risk tracking mitigation and prevention Clear escalation framework - Senior
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
03 Key Performance Indicators
Slide 24: Key Performance Indicators
Key Performance Indicators PARTICULARS FY21 FY22 FY23 F24 PARTICULARS FY21 FY22 FY23 FY24 Operational Assets Customer Base Cash Vans 694 739 840 870 Clients 56 65 89 153 Strong rooms 16 16 15 12 End customers 2,469 2,675 3,242 3,346 Safes 28 28 28 33 Vaults 11 11 12 12 Geographical Reach Pin codes 1
Slide 25: Team
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
05 Market Overview
Slide 29: 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% 5mn+ addressable retail touch points 85% of retail market i
Slide 30: 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 Rest of India 514 Next 50 79 Next 16 92 Ti
Slide 31: 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% P
Slide 32: 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 33: Historical Summary Financials
06 Historical Summary Financials
Slide 34: Stand Alone Income Statement
Stand Alone Income Statement Particulars ( Rs million ) FY21 FY22 FY23 F24 I Revenue from operations 2,217 2,860 3,549 3,845 II Other income 25 9 26 57 III Total Income ( I + II ) 2,242 2,870 3,575 3,903 IV Expenses Employee benefits expenses 390 497 605 731 Finance costs 20 37 9 12 Depreciation and
Slide 35: Stand Alone Balance Sheet
Stand Alone Balance Sheet Particulars (Rs million ) FY21 FY22 FY23 FY24 Particulars (Rs million ) FY21 FY22 FY23 FY24 EQUITY AND LIABILITIES ASSETS Equity Non - Current Assets ( a ) Equity Share Capital 10 101 107 107 ( a ) Property , Plant and Equipment 95 132 126 333 ( b ) Share Application Money
Slide 36: Thank You
THANK YOU Website www.radiantcashservices.com Email investorrelations@radiantcashlogistics.com Contact +(91) 44 – 4904 4904
Radiant Cash Management Services — Q4 FY24 Earnings Presentation on 6ix