Vakrangee Limited · NSE:VAKRANGEE
Vakrangee — Q2 FY2021-22 Earnings Presentation
44 slides from Vakrangee's earnings presentation, Oct 9, 2021
Slide 1: Cover letter to stock exchanges
Vakrangee Vakrangee limited "Vakrangee Corp orate House". Plot No. 93. Road No. 16, MI .D.C. Maral, Andher i (East). Mumbai 40009 3. Maharashtra W: wwwvakra ngee in I L: +9 1 22285034 12/ +912267765 100 czmm~ F: +91 22 2850 20 17 I CIN : L6 5990M H 1990PLC056669 October 09,2021 Department of Corpora
Slide 2: Vakrangee Limited Q2 FY2021-22 Results Update
THE ASSISTED DIGITAL CONVENIENCE STORE VAKRANGEE LIMITED Q2 FY2021-22 RESULTS UPDATE October 9, 2021
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 2.0 : Our next 5 year growth plan 13 Company Overview 17 Update on Sustainability ESG Initiatives 33 Update on Awards & Recognition 36 Board of Directors Team 38 Annexure : Kendra Evolution 41 3
Slide 5: Results Performance Update
RESULTS PERFORMANCE UPDATE 4
Slide 6: Key Highlights Q2 FY2021-22
RESULTS PERFORMANCE UPDATE Key Highlights – Q2 FY2021-22 (Y-o-Y Basis) REVENUE FROM OPERATIONS EBITDA PROFIT AFTER TAX (PAT) In Rs Mn 2,071.9 392.0 267.4 224.7 133.1 702.3 195.0% 74.5% 100.9% Q2 FY2020-21 Q2 FY2021-22 Q2 FY2020-21 Q2 FY2021-22 Q2 FY2020-21 Q2 FY2021-22 Key Highlights – Q2 FY2021-22
Slide 7: Results Performance Update
RESULTS PERFORMANCE UPDATE REVENUE FROM OPERATIONS PROFIT AFTER TAX (PAT) In Rs Mn 2071.9 267.4 1540.2 233.3 207.9 1018.5 168.0 133.1 702.3 743.6 Q2FY2020-21 Q3FY2020-21 Q4FY2020-21 Q1FY2021-22 Q2FY2021-22 Q2FY2020-21 Q3FY2020-21 Q4FY2020-21 Q1FY2021-22 Q2FY2021-22 Returning to Pre-Covid Growth Path
Slide 8: Performance Outlook Update
PERFORMANCE OUTLOOK UPDATE Sale Revenue & Profitability Growth : Positive • Witnessed strong Financial & Operational growth. Return to normalcy on the business front has been progressing well as E-commerce, Online Healthcare and other services have become fully operational. • Strong growth witnessed
Slide 9: Vakrangee Kendra Outlets – Performance Update
VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE PERFORMANCE UPDATE FOR QUARTER ENDED SEPTEMBER, 2021 ~Rs. 115.2 Bn ~32.1 Mn Quarterly Throughput on Vakrangee Quarterly No. of Transactions on Platform – Q2 FY22 Transaction Value Vakrangee Platform – Q2 FY22 13,200+ ~US$6.2 Bn No. of NextGen Outlets cur
Slide 10: GMV / Throughput Contribution
VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE Q2 FY2021-22 - GMV / THROUGHPUT CONTRIBUTION (RS. MN.) Margin Profile % * E-Commerce 2,063 2 - 15% ATM 27,442 Rs. 15/ Fin Txn BFSI 85,703 0.25 - 0.40% • BFSI and ATM services witnessed robust QoQ as well as YoY growth as we get back to pre-covid growth p
Slide 11: Process Automation Initiatives
PROCESS AUTOMATION INITIATIVES Company has Leveraged technology, implemented process automation and Digital initiatives as new ways of conducting everyday business and managing field operations. FLM : COMPLETE DIGITAL PROCESS • Entire Franchisee Lifecycle Management (FLM Process) is now Digital : Fr
Slide 12: Case Studies: NextGen Top Performers
CASE STUDIES : NEXTGEN TOP PERFORMERS Franchisee - SHUBHAM KULKARNI Number of Accounts Opened - 91 SHUBHAM from a Tier-3 location of Maharashtra KULKARNI have Earned `88,373 in just month Total Transaction Value - from BFSI Services `4,86,12,050 Number of Financial Transaction - TARUN Franchisee – T
Slide 13: Consolidated Financial Statements
CONSOLIDATED FINANCIAL STATEMENTS Key Profit & Loss Statement Items Particulars (Rs. Mn.) Q2 FY2021-22 Q2 FY2020-21 YoY% Q1 FY2021-22 QoQ% H1 FY2021-22 Revenue from Operations 2,071.9 702.3 195.0 1,540.2 34.5 3,612.1 Total Expenses 1,723.8 696.1 147.6 1,248.9 38.0 2,972.8 EBIDTA 392.0 224.7 74.5 340
Slide 14: Strategy 2.0: Our Next 5 Year Growth Plan
STRATEGY 2.0: VAKRANGEE’S PHYSICAL NETWORK PLATFORM – OUR NEXT 5 YEAR GROWTH PLAN 13
Slide 15: Core Business 5-Year Growth Strategy
Vakrangee |) rare BRE VAKRANGEE CORE BUSINESS - PHYSICAL NETWORK 5-YEAR GROWTH STRATEGY : (FY21-22 TILL FY25-26) BANKLOGO a | FY 2025-26 E NO. OF ANNUAL TRANSACTION FY 2025-26 E STRONG FINANCIAL GROWTH TAKE RATE (Revenue COMM %) : ~1.2-1.5% PAT MARGIN % : 10%-12% TARGET CASH ADJUSTED ROE: 35%+ 1 BIL
Slide 16: Physical Network 5-Year Growth Strategy
Vakrangee | ) arene oP acter VAKRANGEE CORE BUSINESS — PHYSICAL NETWORK 5-YEAR GROWTH STRATEGY Apr-20 - Mar-21 Apr-21- Mar-22 Apr-22 - Mar-23 No.of Exclusive Branded Outlets 11,730 25,000 35,000 GMV/ Gross Transaction Value Throughout (US$ BN) 5.15 10 18 No. of Transactions (mn) 126.8 300 400 No. of
Slide 17: Focussed to Build Pan-India Presence
FOCUSSED TO BUILD PAN-INDIA FY 2025-26 PRESENCE COVERING 100% POSTAL CODES - 75,000+ Outlets - 19,000 + - 36 States / UTs Postal codes - 740 + Districts - ~70% Tier V & VI Q2 FY 2021-22 - 13,200+ Outlets - 28 States / UTs - 560+ Districts With Exclusive Branded Format Stores, - 4,860+ Postal codes C
Slide 18: Company Overview
Vakrangee / f COMPANY OVERVIEW
Slide 19: NextGen Vakrangee Kendra – Scope of Services
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES Vakrangee Kendra offers a broad spectrum of services across different sectors to offer a “One Stop Shop” solution for its customers BFSI & ATM SERVICES : ASSISTED E-COMMERCE : Assisted Online Shopping and ATM Online Pharmacy Banking and Financial Bill Pay
Slide 20: Scope of Services – BFSI & ATM
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES BFSI & ATM SERVICES • ATM Cash Withdrawal • Non-Financial Transactions (White Label ATM License) • Money Transfer • Lead Generations of Personal / Home / Business Loans • Life Insurance • General Insurance • Health Insurance • Account Opening • Cash Withd
Slide 21: Scope of Services – Assisted E-Commerce
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES ASSISTED E-COMMERCE SERVICES • Online Shopping of Goods • Online Shopping of Jewellery • Telemedicine services • Online Shopping of Medicines • Mobile/DTH Recharge • Bill Payments • E-Mitra services in Rajasthan (Only for Rajasthan) • Train Ticket Booking
Slide 22: 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 21
Slide 23: Formats of NextGen Vakrangee Kendra
FORMATS OF NEXTGEN VAKRANGEE KENDRA NEXTGEN VAKRANGEE KENDRA: GOLD, SILVER AND BRONZE MODEL Update on Nextgen 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 sto
Slide 24: Key Features – NextGen Vakrangee Kendra
KEY FEATURES – NEXTGEN VAKRANGEE KENDRA 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 •
Slide 25: NextGen Vakrangee Kendra Model
NEXTGEN VAKRANGEE KENDRA MODEL 24
Slide 26: NextGen Vakrangee Kendra Model
NEXTGEN VAKRANGEE KENDRA MODEL 25
Slide 27: Huge Untapped Market: Overall Market Potential
HUGE UNTAPPED MARKET: OVERALL MARKET POTENTIAL POPULATION 1.35 BILLION POLLING STATIONS 1 MILLION TOTAL NO OF VILLAGES 6,62,986 TOTAL NO OF GRAM PANCHAYAT 2,53,268 TOTAL NO OF URBAN WARDS 75,535 TOTAL OUTLET POTENTIAL 3,28,803 26
Slide 28: Advantage Vakrangee: Our Strengths
ADVANTAGE VAKRANGEE : OUR STRENGTHS Tie up with Technology & On Ground Field Size and Scale Strong Partners & Integration Presence till the with Strong Access to Key Expertise Block Level Franchisee Model Licenses • Over two decades of System Integration • Field Level Hierarchy • Portfolio of key Ca
Slide 29: Store Economics of a NextGen Kendra
STORE ECONOMICS OF A NEXTGEN KENDRA NextGen Outlet Estimated Avg. Revenue per Month Revenue Per Store Rs. 0.1 mn * 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% Profit Ma
Slide 30: Our Proprietary Technology Platform
OUR PROPRIETARY TECHNOLOGY PLATFORM SERVICES PROVIDED THROUGH REAL-TIME INTEGRATION WITH PARTNER SYSTEMS BANK – CORE BANKING SERVER ALL PARTNER SYSTEM (e-Commerce, e-Governance, Insurance, Financial Services & Logistics) Customer Vakrangee Kendra Internet Vakrangee Management System Connectivity Ken
Slide 31: White Label ATM – Opportunity
WHITE LABEL ATM – OPPORTUNITY • India ranks low in the world in terms of ATM Density. We have ATM density of 210 ATMs per Million whereas developed countries like Canada have 2,141 ATMs per Million. • Low ATM Penetration in Tier 3, 4, 5 and 6 cities creates Huge opportunity for WLAs to bridge the ga
Slide 32: Launch of Mobile Super App Update
LAUNCH OF MOBILE SUPER APP UPDATE • Vakrangee has recently launched 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
Slide 33: 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 34: Update on Sustainability ESG Initiatives
UPDATE ON SUSTAINABILITY ESG INITIATIVES 33
Slide 35: 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 36: Sustainability ESG Performance Update
SUSTAINABILITY ESG PERFORMANCE UPDATE Global recognition reflects company’s commitment to further enhance its corporate governance and transparency standards. Company has achieved Global recognition across various platforms for its superior ESG performance and long term Business sustainability. Comp
Slide 37: Update on Awards & Recognition
UPDATE ON AWARDS & RECOGNITION 36
Slide 38: Awards & Recognition
AWARDS & RECOGNITION Vakrangee makes history by Vakrangee has been ranked Vakrangee has been Vakrangee has been awarded setting GUINNESS WORLD amongst Top 100 Franchise awarded as the best ESG India Leadership Award RECORDSTM title for the Most Opportunities for the year ‘FINANCIAL SERVICES
Slide 39: Board of Directors Team
Vakrangee , BOARD OF DIRECTORS TEAM
Slide 40: Board of Directors
BOARD OF DIRECTORS Strong Board of Directors • Has about 40+ years of business experience. He has held several leadership positions in the Reserve Bank of RAMESH JOSHI India and has been Nominee Director on behalf of RBI on the Boards of Various Banks, and retired as an Non Executive Executive Direc
Slide 41: Board of Directors
BOARD OF DIRECTORS Strong Board of Directors AVINASH VYAS • Has wide experience in Audit Certification for externally aided projects funded by foreign agencies such as World Non Executive Bank and its extended arms Independent Director • Holds a Bachelor’s Degree in Commerce and is LL.B (professiona
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 / f Thank You