Vakrangee Limited · NSE:VAKRANGEE
Vakrangee — Q2 FY2022-23 Earnings Presentation
42 slides from Vakrangee's earnings presentation, Oct 21, 2022
Slide 1: Submission letter to stock exchanges
Vakrangee Limited “Vakrangee Corporate House”, Plot No.93, Road No.16, M.I.D.C. Marol, Andheri (East), Mumbai - 400093. Maharashtra, W: www.vakrangee.in | L:+91 22 2850 3412/+91 22 6776 5100 F: +91 22 28502017 | CIN: L65990MH1990PLC056669`` October 21, 2022 To, Department of Corporate Relationship C
Slide 2: Q2 FY2022-23 Results Update
THE ASSISTED DIGITAL CONVENIENCE STORE “GO TO MARKET PLATFORM” : BUILDING INDIA’S LARGEST LAST MILE DISTRIBUTION PLATFORM VAKRANGEE LIMITED Q2 FY2022-23 RESULTS UPDATE October 21, 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 10 Demerger Update 19 Company Overview 23 Update on Sustainability ESG Initiatives 36 Annexure : Kendra Evolution 39 3
Slide 5: Results Performance Update
RESULTS PERFORMANCE UPDATE 4
Slide 6: Key Highlights – Q2 FY2022-23 (Q-o-Q Basis)
RESULTS PERFORMANCE UPDATE Key Highlights – Q2 FY2022-23 (Q-o-Q Basis) REVENUE FROM OPERATIONS EBITDA & EBITDA MARGIN PROFIT AFTER TAX (PAT) In Rs Mn In Rs Mn In Rs Mn 110.0 2260.3 2340.7 4.7% 48.2 45.3 104.2 4.6% 3.6% 6.4% Q1 FY2022-23 Q2 FY2022-23 Q1 FY2022-23 Q2 FY2022-23 Q1 FY2022-23 Q2 FY2022-2
Slide 7: Consolidated Financial Statements
CONSOLIDATED FINANCIAL STATEMENTS Key Profit & Loss Statement Items Particulars (Rs. Mn.) Q2 FY2022-23 Q1 FY2022-23 YoY% H1 FY2022-23 Revenue from Operations 2,340.7 2,260.3 3.6% 4,601.0 Total Expenses 2,286.3 2213.9 3.3% 4,500.2 EBIDTA 110.0 104.2 5.6% 214.3 Profit before Tax (PBT) 68.1 65.0 4.8% 1
Slide 8: 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 Q2 FY2022-23 Total No. of Outlets Presence in States/UTs Presence in districts Presence in Tier IV & VI Our Presen
Slide 9: Q2 FY2022-23 Gross Transaction Value Contribution
VAKRANGEE KENDRA – PERFORMANCE UPDATE Q2 FY2022-23 – GROSS TRANSACTION VALUE CONTRIBUTION (RS. MN.) Margin Profile % * E-Commerce 2,131 2 - 15% ATM 30,062 Rs. 17/ Fin Txn BFSI 97,211 0.25 - 0.40% • BFSI and ATM services witnessed robust QoQ as well as YoY growth as we get back to pre-covid growth pa
Slide 10: Case Studies: Top Performing Franchisees
CASE STUDIES : TOP PERFORMING FRANCHISEES Franchisee – JITENDRA GAHALOT from a JITENDRA Tier-6 location of Pali, Rajasthan have Total Transaction Value - ` GAHALOT Earned `1,15,476 in just month from `3,58,16,400 BFSI – Banking Services Franchisee – PREM SHANKAR JAT from a Number of Financial Transa
Slide 11: Strategy Update
Vakrangee / ’ STRATEGY UPDATE
Slide 12: 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 11
Slide 13: 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 14: Launch of Master Franchisee Scheme
LAUNCH OF MASTER FRANCHISEE SCHEME • APPOINTED MASTER FRANCHISEES IN 53 DISTRICTS ACROSS 15 STATES ACROSS THE COUNTRY. Plan to achieve • MASTER FRANCHISEE TO PROVIDE ON-GROUND OPERATIONAL SUPPORT TO THE 100% District EXISTING FRANCHISEE OUTLETS AS WELL AS DRIVE NEW FRANCHISEE coverage over ACQUISITI
Slide 15: 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 16: 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 Q2 FY2022-23 FY2021-22 KEY DIFFERENTIATORS : DIGITAL AS WELL AS PHSYICAL Number of Bank ~ 0.6 ~ 2.7 ECO-SYSTEM IN PLACE TILL THE Ac
Slide 17: 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 18: 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 19: 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 20: Demerger Update
Vakrangee / ’ DEMERGER UPDATE
Slide 21: 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 22: 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 23: 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 24: Company Overview
Vakrangee / ’ COMPANY OVERVIEW
Slide 25: Vakrangee Kendra – Scope of Services
VAKRANGEE KENDRA – SCOPE OF SERVICES Banking , ATM & Insurance Financial Services / Fintech E-Commerce / Online Travel Tele Medicine / Pharmacy PAN INDIA PRESENCE : • 82% IN TIER 4-6 LOCATIONS PHYSICAL + DIGITAL • 5,834 POSTAL CODES ECO-SYSTEM • 595 DISTRICTS “GO TO MARKET PLATFORM” : BUILDING INDIA
Slide 26: Vakrangee Kendra – Scope of Services: BFSI & ATM
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 / Business Loans • Pan Card Service • CIBIL Score service • Life Insurance
Slide 27: Vakrangee Kendra – Scope of Services: Assisted E-Commerce
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/Hotel Ti
Slide 28: 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 27
Slide 29: 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 30: 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 31: NextGen Vakrangee Kendra Model
NEXTGEN VAKRANGEE KENDRA MODEL 30
Slide 32: Huge Untapped Market: Overall Market Potential
HUGE UNTAPPED MARKET: OVERALL MARKET POTENTIAL POPULATION 1.35 BILLION POLLING STATIONS 1 MILLION TOTAL NO OF VILLAGES 6,62,754 TOTAL NO OF GRAM PANCHAYAT 2,55,644 TOTAL NO OF URBAN WARDS 75,535 TOTAL OUTLET POTENTIAL 3,31,179 31
Slide 33: Focussed to Build Pan-India Presence Covering 100% Postal Codes
FOCUSSED TO BUILD PAN-INDIA Within 18 Months PRESENCE COVERING 100% POSTAL CODES - 75,000+ Outlets - 19,000+ Postal codes - 36 States / UTs - ~70% Tier V & VI - 760 + Districts Q2 FY2022-23 - 24,887 Outlets - 32 States / UTs - 595 Districts With Exclusive Branded Format Stores, - 5,834 Postal codes
Slide 34: 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 35: 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 36: 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 37: Update on Sustainability ESG Initiatives
UPDATE ON SUSTAINABILITY ESG INITIATIVES 36
Slide 38: 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 39: 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 40: Annexure: Kendra Evolution
ANNEXURE : KENDRA EVOLUTION 39
Slide 41: 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 42: Thank You
Vakrangee / ’ Thank You