Vakrangee Limited · NSE:VAKRANGEE
Vakrangee — Q1 FY2020-21 Earnings Presentation
63 slides from Vakrangee's earnings presentation, Jul 31, 2020
Slide 1: Exchange filing cover letter
Vakrangee Vakrangee Limited Vakrangee Corporate House' Plot No 93 Road No 16. M I OC. Maral. Andhen :East), Mumbal 400093. Maharashtra W wwwvakrangeeln L +912228503412 +9122 6776 5100 mrm~ F +9122 2850 20171 (IN L65990MH1990PL(056669 July 31,2020 To, Department of Corporate Relationship Corporate Re
Slide 2: Vakrangee Limited Results Update Q4FY2019-20 & Q1FY2020-21
THE ASSISTED DIGITAL CONVENIENCE STORE VAKRANGEE LIMITED RESULTS UPDATE – Q4FY2019-20 & Q1FY2020-21 July 31, 2020
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 Update on Sustainability ESG Initiatives 19 Case Studies 24 Company Overview 30 Update on Awards & Recognition 47 Board of Directors Team 50 Annexures 53 Kendra Evolution 54 3
Slide 5: Results Performance Update
RESULTS PERFORMANCE UPDATE 4
Slide 6: Key Highlights Q4 FY2019-20
RESULTS PERFORMANCE UPDATE Key Highlights – Q4 FY2019-20 (Y-o-Y Basis) REVENUE FROM OPERATIONS EBITDA PROFIT AFTER TAX (PAT) In Rs Mn 2073.9 311.6 316.3 186.2 1,014.6 64.5 383.0% 104.4% 69.9% Q4 FY2018-19 Q4 FY2019-20 Q4 FY2018-19 Q4 FY2019-20 Key Highlights – Q4 FY2019-20 (Q-o-Q Basis) Q4 FY2018-19
Slide 7: Key Highlights FY2019-20
RESULTS PERFORMANCE UPDATE Key Highlights – FY2019-20 (Y-o-Y Basis) TOTAL REVENUE EBITDA PROFIT AFTER TAX (PAT) In Rs Mn 712.8 15,882.0 1,012.4 7,627.0 583.0 252.3 -52.0% 73.7% 182.5% FY2018-19 FY2019-20 FY2018-19 FY2019-20 FY2018-19 FY2019-20 • Revenue for FY20 has been impacted as the Company reva
Slide 8: Key Highlights Q1 FY2020-21
RESULTS PERFORMANCE UPDATE Key Highlights – Q1 FY2020-21 (Q-o-Q Basis) TOTAL REVENUE EBITDA PROFIT AFTER TAX (PAT) In Rs Mn 311.6 2,239.9 316.3 204.1 849.4 118.9 -62.1% -35.5% -61.8% Q4 FY2019-20 Q1 FY2020-21 Q4 FY2019-20 Q1 FY2020-21 Q4 FY2019-20 Q1 FY2020-21 • Revenue & Profitability has been mate
Slide 9: Consolidated Financial Statements
CONSOLIDATED FINANCIAL STATEMENTS Key Profit & Loss Statement Items Particulars (Rs. Mn.) Q4FY2019-20 Q3FY2019-20 QoQ% Q4FY2018-19 YoY% FY2019-20 Q1 FY2020-21 Revenue from Operations 2,073.9 1,992.0 4.1 1,014.6 104.4 6,852.2 678.5 Total Expenses 1,962.0 1,925.5 1.9 1062.7 84.6 6,761.8 684.1 EBIDTA 3
Slide 10: Our Response to Covid-19 Pandemic
OUR RESPONSE TO COVID-19 PANDEMIC Our Key priorities during COVID-19 Pandemic: • Safeguarding people’s health – Our Franchisees, Field Team & Customers • Ensuring business continuity through our outlets being Operational • Supporting communities by giving them access to Essential Services like Banki
Slide 11: Understanding the Impact of Covid-19 Pandemic
UNDERSTANDING THE IMPACT OF COVID-19 PANDEMIC CHALLENGES COVID-19 • Revenue & Profitability Impact due to store closure during initial PANDEMIC IMPACT: Lockdown and Only Essential services like Banking and ATM available during Q1 FY21 • Demand side challenge for services like Online shopping, Travel
Slide 12: Post Covid: Opportunity to Increase Our Competitive Advantage
POST COVID: OPPORTUNITY TO INCREASE OUR COMPETITIVE ADVANTAGE & ACHIEVE OUR PLANNED TARGETS AHEAD OF TIME 11
Slide 13: Vakrangee Kendra Growth Strategy Update
VAKRANGEE KENDRA - GROWTH STRATEGY UPDATE WELL PLACED TO LEVERAGE THE GROWTH OPPORTUNITY Leveraged Strong Balance Emerging as a Convenience Huge Number of Enquiries sheet to ensure Kendra Store of Choice for Consumers Received for NextGen Kendras Hardware / Software in Rural India with Loan Facility
Slide 14: Performance Update Q4 FY20 and FY2019-20
VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE PERFORMANCE UPDATE FOR QUARTER ENDED MARCH, 2020 & FULL YEAR FY2019-20 ~Rs. 82.0 Bn ~26.1 Mn Quarterly Throughput on Vakrangee Quarterly No. of Transactions on Platform – Q4 FY20 Transaction Value Vakrangee Platform – Q4 FY20 ~Rs. 303.7 Bn ~96.8 Mn Annua
Slide 15: Performance Update Quarter Ended June 2020
VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE PERFORMANCE UPDATE FOR QUARTER ENDED JUNE, 2020 ~Rs. 78.3 Bn 10,000+ Quarterly Throughput on Vakrangee No. of NextGen Outlets currently Platform – Transaction Value operational ~US$ 4.2 Bn ~30.8 Mn Annual Run Rate Throughput – Quarterly No. of Transactio
Slide 16: GMV / Throughput Contribution
VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE Q4 FY2019-20 & Q1FY2020-21 - GMV / THROUGHPUT CONTRIBUTION (RS. MN.) Margin Profile % 2514 E-Commerce* 500 2 - 15% 24202 ATM Rs. 15/ Fin Txn 18767 BFSI 55257 0.25 - 0.40% 58998 0 10000 20000 30000 40000 50000 60000 Q4 FY2019-20 Q1FY2020-21 • Robust Growt
Slide 17: Visibility on Opening of NextGen Outlets
VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE VISIBILITY ON OPENING OF NEXTGEN OUTLETS Total Number of Total Number of Additional Operational Outlets : Formal Expression of Outlets under On-Boarding 10,000+ Interest : Process : 1,20,000+ 24,200+ CLEAR VISIBILITY OF 25,000 NEXTGEN OUTLETS FULLY OPERA
Slide 18: Guidance on Opening of NextGen Outlets
VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE GUIDANCE ON OPENING OF NEXTGEN OUTLETS 3,00,000 NO OF NEXTGEN OUTLETS 35,000 35,000 34,200+* 8,500 LONG TERM TARGET 3,504 95 Dec-18 Mar-19 Jun-19 Jun-20 Dec-20 E** Jun-21 E** Mar-25 E # Note: * Operational outlets Outlets under On-Boarding Process Planne
Slide 19: Performance Update Summary
VAKRANGEE – PERFORMANCE UPDATE SUMMARY Debt Free & Strong Balance Sheet in Place Zero Strong Promoter Senior WELL Pledge & Mgmt. team POISED FOR Promoter in Place STRONG Stake GROWTH Increased Scalable All Franchisee Regulatory Model with Compliances Strong in Place Operating Leverage 18
Slide 20: Update on Sustainability ESG Initiatives
UPDATE ON SUSTAINABILITY ESG INITIATIVES 19
Slide 21: 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 to
Slide 22: Highlights of Sustainalytics ESG Assessment Report
HIGHLIGHTS OF SUSTAINALYTICS ESG ASSESSMENT REPORT ESG Risk rating Exposure Management Vakrangee Limited 7.4 Negligible 30.0 Low 81.4 Strong • Vakrangee has been globally ranked No.1 in the Sustainalytics ESG Risk rating rankings out of the 668 companies assessed in the Software and Services industr
Slide 23: NextGen Vakrangee Kendra – Sustainable Business Model
Nextgen Vakrangee Kendra – Sustainable Business Model Vakrangee Kendra business model is a Long Term sustainable business model as we are a Provider of Emergency and Essential Services Even during the current COVID-19 Pandemic situation, Our Vakrangee kendras have been Exempted from Lockdown and are
Slide 24: Kendras Disbursing Government DBT Subsidies
Nextgen Vakrangee Kendra – Sustainable Business Model Vakrangee Kendras disbursing Government DBT Subsidies and Providing Essential Services during Lockdown:- Please view Video Links for more Details : - • Vakrangee Cares : Serving the Nation: https://www.youtube.com/watch?v=4-eHcPznPTM • Doorstep B
Slide 25: Case Studies
CASE STUDIES 24
Slide 26: NextGen Top Performers: Nand Lal Swami
CASE STUDIES : NEXTGEN TOP PERFORMERS “I have earned Rs. 76,186 From BFSI – Banking Services in just 1 month” NAND LAL SWAMI RAJASTHAN Number of Accounts 36 TIER 5 LOCATION Opened AGEING OF OUTLET – 18 MONTHS Total Transaction Value ₹ 2,55,27,850 25
Slide 27: NextGen Top Performers: Shashi Jain
CASE STUDIES : NEXTGEN TOP PERFORMERS “I have earned Rs. 1,45,460 From BFSI – ATM Services in just 1 month” SHASHI JAIN RAJASTHAN Number of Financial 11,591 TIER 3 LOCATION Transaction AGEING OF OUTLET – 20 MONTHS 26 Total Transaction Value ₹ 96,78,600 26
Slide 28: NextGen Top Performers: Deepali Andhare
CASE STUDIES : NEXTGEN TOP PERFORMERS “I have earned Rs. 41,262 From BFSI – Domestic Money Transfer Service in just 1 month” DEEPALI ANDHARE MAHARASHTRA Number of 2,491 TIER 1 LOCATION Transactions AGEING OF OUTLET – 20 MONTHS Total Transaction Value ₹ 66,30,608 27
Slide 29: NextGen Top Performers: Mohammed Arif
CASE STUDIES : NEXTGEN TOP PERFORMERS “I have earned Rs. 1,08,171 From Assisted Online Shopping in just 1 month” MOHAMMED ARIF NCR (DELHI) Number of Orders 10,733 TIER 1 LOCATION AGEING OF OUTLET – 18 MONTHS 28 Total Sale Value ₹ 5,00,970 28
Slide 30: NextGen Top Performers: Suparna Raje
CASE STUDIES : NEXTGEN TOP PERFORMERS “I have earned Rs. 48,326 From Assisted Online Pharmacy in just 1 month” SUPARNA RAJE WEST BENGAL Number of 3,279 TIER 2 LOCATION Transaction AGEING OF OUTLET – 20 MONTHS Total Transaction Value ₹ 3,22,207 29
Slide 31: Company Overview
COMPANY OVERVIEW 30
Slide 32: 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 33: Assisted E-Commerce Services
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES ASSISTED E-COMMERCE SERVICES • Online Shopping of Goods • Online Shopping of Jewellery • Online Shopping of Medicines • Telemedicine services • Mobile/DTH Recharge • Bill Payments • E-Mitra services in Rajasthan (Only for Rajasthan) • Train Ticket Booking
Slide 34: 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 33
Slide 35: Unique Features of Assisted Online Shopping
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES UNIQUE FEATURES OF ASSISTED ONLINE SHOPPING Own The World’s Monopolistic Biggest E-mall : More than Offering of Marketplace 1 Crore+ products POTENTIAL EARNING OF High Quality Products at Rs. 1,00,000+ Competitive Prices Zero Working Capital per month Req
Slide 36: BFSI & ATM Services
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 Withdraw
Slide 37: 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 38: 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 39: NextGen Vakrangee Kendra Model
NEXTGEN VAKRANGEE KENDRA MODEL 38
Slide 40: NextGen Vakrangee Kendra Model
NEXTGEN VAKRANGEE KENDRA MODEL 39
Slide 41: NextGen Vakrangee Kendra – Our Presence
NEXTGEN VAKRANGEE KENDRA – OUR PRESENCE Sr. No. State & UT Name 1 Andhra Pradesh 34,200+* OUTLETS 2 3 4 Arunachal Pradesh Assam Bihar 5 Chandigarh 32 STATES & UTs 6 7 Chhattisgarh Dadra and Nagar Haveli 8 Daman and Diu 9 NCR (Delhi) 10 Goa 11 Gujarat 12 Haryana 13 Himachal Pradesh 14 Jammu & Kashmir
Slide 42: Huge Untapped Market: Overall Market Potential
HUGE UNTAPPED MARKET: OVERALL MARKET POTENTIAL POPULATION 1.21 BILLION TOTAL NO OF VILLAGES 6,54,424 TOTAL OUTLET POTENTIAL 3,69,977 RURAL OUTLET POTENTIAL 2,94,442 URBAN OUTLET POTENTIAL 75,535 41
Slide 43: 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 • Field Level Hierarchy System Integration till the Block level
Slide 44: 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 45: Our Proprietary Technology Platform
OUR PROPRIETARY TECHNOLOGY PLATFORM Technology Internet Connectivity • Technology platform integrated with CBS of • Seamless connectivity through V-SAT or Broadband Internet various banks, delivering real-time & interoperable banking access • Biometric authentication enabling quick KYC Security Spec
Slide 46: Franchisee Focused Team Structure
FRANCHISEE FOCUSED TEAM STRUCTURE Relationship Relationship Manager Corporate Head Office Team Manager Dedicated Dedicated support support State Operations State Marketing directly from directly from Head Office Head Head Head Office to franchisee to franchisee for all type of for all type of Operat
Slide 47: White Label ATM – Opportunity
WHITE LABEL ATM – OPPORTUNITY • India rank’s is 145 in the world in terms of ATM Density 2,728 ATM per Mn Population • Low ATM Penetration in Tier 3, 4, 5 and 6 cities ~ Huge 2,206 opportunity for WLAs to bridge the gap between Urban and 1,688 1,657 1,609 Rural India 1,276 1,157 • As on June 2020, I
Slide 48: Update on Awards & Recognition
UPDATE ON AWARDS & RECOGNITION 47
Slide 49: Awards & Recognition
AWARDS & RECOGNITION Vakrangee makes history by setting GUINNESS Vakrangee has been awarded as the best WORLD RECORDSTM title for the Most stores ‘FINANCIAL SERVICES RETAILER OF THE YEAR’ at launched simultaneously on 14th January 2019 the Indian Retail Awards 2019. Launches 1107 Nextgen Vakra
Slide 50: Awards and Certifications
AWARDS AND CERTIFICATIONS • Vakrangee has been nominated in the ‘India’s Top 100 Franchisees’ list by the Franchisee India Magazine in the January 2020 edition. • Guinness World Records Title for the Most Stores Launched Simultaneously on 14th January 2019. Launches 1107 Nextgen Vakrangee Kendra sto
Slide 51: Board of Directors Team
BOARD OF DIRECTORS TEAM 50
Slide 52: 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 53: Strong 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 (professional) which adds to hi
Slide 54: Annexures
ANNEXURES 53
Slide 55: Kendra Evolution
KENDRA EVOLUTION 54
Slide 56: Kendra Evolution: Phase 1
KENDRA EVOLUTION PHASE 1: INITIALLY AN E-GOVERNANCE PLAYER PHASE 1: CSC & E-MITRA MODEL OUTLETS WERE PRIMARILY TERMED AS “COMMON SERVICE CENTRE - CSC” OR “E-MITRA KENDRA” :- • NON-EXCLUSIVE STORE MODEL • SINGLE LINE OF SERVICE PRIMARILY E-GOVERNENCE SERVICES • NO STANDARDIZED DESIGN LAYOUT & BRANDIN
Slide 57: Kendra Evolution: Phase 1
KENDRA EVOLUTION PHASE 1: INITIALLY AN E-GOVERNANCE PLAYER 56
Slide 58: Kendra Evolution: Phase 2
KENDRA EVOLUTION PHASE 2: E-GOVERNANCE PLAYER TO A BANKING BC POINT MODEL PHASE 2 : BANKING BC POINT MODEL COMPANY RECEIVED THE BUSINESS CORRESPONDENCE BANKING MANDATE AND STARTED THE BC POINT SERVICES THROUGH THE KENDRA – • NON-EXCLUSIVE • DUAL LINE OF SERVICE - E-GOVERNENCE & BANKING SERVICES • NO
Slide 59: Kendra Evolution: Phase 2
KENDRA EVOLUTION PHASE 2: E-GOVERNANCE PLAYER TO A BANKING BC POINT MODEL 58
Slide 60: Kendra Evolution: Phase 3
KENDRA EVOLUTION PHASE 3: E-GOVERNANCE PLAYER TO MULTI SPECIALITY STORE MODEL PHASE 3 : MULTI-SPECIALITY STORE MODEL EVOLVED INTO A MULTI SPECIALITY STORE MODEL :– • PLANNED AS AN EXCLUSIVE STORE MODEL • MULTI-LINE OF SERVICES – BANKING, E- GOVERNENCE, INSURANCE, E-COMMERCE & OPTIONAL ATM SERVICES •
Slide 61: Kendra Evolution: Phase 3
KENDRA EVOLUTION PHASE 3: E-GOVERNANCE PLAYER TO MULTI SPECIALITY STORE MODEL 60
Slide 62: Kendra Evolution: Phase 4
KENDRA EVOLUTION PHASE 4: E-GOVERNANCE PLAYER TO AN EXCLUSIVE NEXTGEN ASSISTED DIGITAL CONVENIENCE STORE PHASE 4 : NEXTGEN KENDRA MODEL – ASSISTED EVOLUTION INTO AN EXCLUSIVE ASSISTED DIGITAL CONVENIENCE STORE DIGITAL CONVENIENCE STORE MODEL – • EXCLUSIVE STORE MODEL • MULTI-LINE OF SERVICES – BANKI
Slide 63: Thank You
Thank You 62