Vakrangee Limited · NSE:VAKRANGEE
Vakrangee — Q4 FY2020-21 Earnings Presentation
71 slides from Vakrangee's earnings presentation, Jun 19, 2021
Slide 1: Cover letter to stock exchanges
Vakrangee Vakrangee Limited "Vakrangee Corporate House'. Plot No 93. Road No 16. MID C. Maral Andhen (East). Mumbal 400093. Maharashtra W wwwvakrangeeln L ,91 2228503412 ,9122 6776 5100 mrm~ F ·912228502017 (IN L65990MH 1990PLC056669 June 19, 2021 To, Department of Corporate Relationship Corporate R
Slide 2: Results Update Presentation Q4FY2020-21 & Full Year FY2020-21
THE ASSISTED DIGITAL CONVENIENCE STORE VAKRANGEE LIMITED RESULTS UPDATE PRESENTATION – Q4FY2020-21 & Full Year FY2020-21 June 19, 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 Update on Demerger Scheme 04 Results Performance Update 11 Update on Sustainability ESG Initiatives 22 Case Studies 33 Company Overview 38 Update on Awards & Recognition 55 Board of Directors Team 58 Annexures 61 Kendra Evolution 62 3
Slide 5: Update on Demerger Scheme
UPDATE ON DEMERGER SCHEME 4
Slide 6: 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 7: Our Business Model: Understanding Our Unique Offering
Strong Value Proposition • All in One Super App Platform • Access to Physical Store Customer network - Trust & Comfort for Customers especially in Rural India OUR BUSINESS MODEL : UNDERSTANDING OUR UNIQUE OFFERING Unique Convenience Features : Leveraging the Vakrangee Eco- System • Store Pick Up Fac
Slide 8: Business Model: Unique Competitive Advantages
BUSINESS MODEL : UNIQUE COMPETITIVE ADVANTAGES Convenience : Strong Technology Expertise : All-in-one platform for all Technology and product-first Customer needs approach to business Vakrangee is a strong consumer Unique Proposition of Digital brand recognized across the along with Physical: “Phygi
Slide 9: Rationale for Demerger Scheme
RATIONALE FOR DEMERGER SCHEME • The focus is on enhancing strategic flexibility to build a viable platform solely focusing on each of these businesses (Physical as well as Digital). • We believe that both the businesses require greater attention and possess high growth potential, due to which the Co
Slide 10: Business Structure: Post Demerger
BUSINESS STRUCTURE : POST DEMERGER Physical Platform : Vakrangee Kendra Network Digital Platform : BharatEasy Super App • Strong Growth levers in Place : Assistance Model • Incremental Value added Business platform for with strong focus in Rural India Online consumers • Leading player in Financial I
Slide 11: Demerger Scheme – Key Updates
DEMERGER SCHEME – KEY UPDATES No cash consideration is payable under the Scheme. Share Exchange Ratio : 1:1 The Resulting Company will issue equity shares to the shareholders of the Demerged Company as under: • Upon this scheme coming into effect, in consideration of the transfer of the Update on Ca
Slide 12: Results Performance Update
RESULTS PERFORMANCE UPDATE 11
Slide 13: Key Highlights – Q4 FY2020-21 (Q-o-Q Basis)
RESULTS PERFORMANCE UPDATE Key Highlights – Q4 FY2020-21 (Q-o-Q Basis) REVENUE FROM OPERATIONS EBITDA PROFIT AFTER TAX (PAT) In Rs Mn 207.9 296.6 250.9 168.0 1018.5 743.6 37.0% 18.2% 23.8% Q3 FY2020-21 Q4 FY2020-21 Q3 FY2020-21 Q4 FY2020-21 Q3 FY2020-21 Q4 FY2020-21 • The Company has witnessed robus
Slide 14: Performance Outlook Update
PERFORMANCE OUTLOOK UPDATE Sale Revenue & Profitability Growth : Positive & Encouraging • Return to normalcy on the business front has been progressing well with month-on-month improvement in the sales • Quarterly Throughput crossed Rs. 115+ Billion • Annual Throughput crossed Rs. 376+ Billion (USD
Slide 15: Vakrangee Kendra Outlets – Performance Update
VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE PERFORMANCE UPDATE FOR QUARTER ENDED MARCH, 2021 & FULL YEAR FY2020-21 ~Rs. 115.1 Bn ~32.4 Mn Quarterly Throughput on Vakrangee Quarterly No. of Transactions on Platform – Q4 FY21 Transaction Value Vakrangee Platform – Q4 FY21 ~Rs. 376.1 Bn ~126.8 Mn Ann
Slide 16: FY2020-21 GMV / Throughput Contribution
VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE FY2020-21 - GMV / THROUGHPUT CONTRIBUTION (RS. MN.) Margin Profile % * E-Commerce 3,338 2 - 15% ATM 1,03,167 Rs. 15/ Fin Txn BFSI 2,69,615 0.25 - 0.40% • Banking and ATM services witnessed Robust GMV and number of transactions. Stable Growth seen in over
Slide 17: Consolidated Financial Statements
CONSOLIDATED FINANCIAL STATEMENTS Key Profit & Loss Statement Items Particulars (Rs. Mn.) Q4 FY2020-21 Q3 FY2020-21 QoQ% FY2020-21 Revenue from Operations 1,018.5 743.6 37.0 3,142.9 Total Expenses 919.4 711.8 29.2 3,011.3 EBIDTA 296.6 250.9 18.2 976.2 Profit before Tax (PBT) 275.6 210.0 31.2 828.2 T
Slide 18: Understanding the Impact of COVID-19 Pandemic
UNDERSTANDING THE IMPACT OF COVID-19 PANDEMIC CHALLENGES COVID-19 • Revenue Impact due to store closure during initial Lockdown PANDEMIC IMPACT: period and Only Essential services like Banking and ATM available . • Situation is improving , However would take another one quarter to normalize. Demand
Slide 19: Post COVID: Opportunity to Increase Our Competitive Advantage
POST COVID: OPPORTUNITY TO INCREASE OUR COMPETITIVE ADVANTAGE & ACHIEVE OUR PLANNED TARGETS AHEAD OF TIME 18
Slide 20: 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 21: NextGen Vakrangee Kendra: Gold, Silver and Bronze Model
VAKRANGEE KENDRA - GROWTH STRATEGY UPDATE NEXTGEN VAKRANGEE KENDRA: GOLD, SILVER AND BRONZE MODEL With our Customized Plans, Everyone’s Dream of Success becomes Reality !! 20
Slide 22: Visibility on Opening of NextGen Outlets
VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE VISIBILITY ON OPENING OF NEXTGEN OUTLETS Total Number of Formal Expression of Total Number of Operational Outlets : Interest : 11,700+ 1,20,000+ CLEAR VISIBILITY OF 25,000 NEXTGEN OUTLETS OVER THE NEXT 12 MONTHS 21
Slide 23: Update on Sustainability ESG Initiatives
UPDATE ON SUSTAINABILITY ESG INITIATIVES 22
Slide 24: 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 25: 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 26: Highlights of Sustainalytics ESG Assessment Report
HIGHLIGHTS OF SUSTAINALYTICS ESG ASSESSMENT REPORT ESG Risk rating Exposure Management Vakrangee Limited 7.4 Negligible 31.6 Low 82.1 Strong • Vakrangee has been globally ranked No.1 in the Sustainalytics ESG Risk rating rankings out of the 816 companies assessed in the Software and Services industr
Slide 27: Highlights of CDP Score Report
HIGHLIGHTS OF CDP SCORE REPORT • Vakrangee Demonstrates Environmental Transparency and achieves “B” Score from CDP for Environmental Practices, Better than the Industry’s Average. • This is higher than the Asia regional average of D, Global Average of C and Higher than the specialized professional s
Slide 28: Highlights of CDP Supplier Engagement Report
HIGHLIGHTS OF CDP SUPPLIER ENGAGEMENT REPORT • Vakrangee achieves “A-” Score from CDP for Suppliers Engagement, Better than the Industry’s Average. • This is higher than the Asia regional average of B-, Global Average of C and Higher than the specialized professional services sector average of B-. •
Slide 29: Highlights of RobecoSAM – S&P Global ESG Score
HIGHLIGHTS OF ROBECOSAM – S&P GLOBAL ESG SCORE Vakrangee ranked No. 13 Company in the global industry ranking and ranked No. 9 Company in the Corporate Governance global industry raking based on RobecoSAM – S&P Global ESG Score. 28
Slide 30: Highlights of Bloomberg GEI Score
HIGHLIGHTS OF BLOOMBERG GEI SCORE • Vakrangee is globally recognized & included in 2021 Bloomberg Gender-Equality Index. • The 2021 Bloomberg GEI comprises of 380 companies across the world with a combined market capitalization of USD14 Trillion Headquartered in 44 countries and Regions across 11 se
Slide 31: Highlights of Integrated Annual Report
HIGHLIGHTS OF INTEGRATED ANNUAL REPORT • First Integrated Annual report of Vakrangee limited released with Assurance from Independent Auditor Grand Thornton India LLP [FY19-20] • Highlights of Integrated Annual Report: • Vakrangee adopted the Integrated Reporting Framework of the International Integ
Slide 32: 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 33: Kendras Disbursing Government DBT Subsidies and Essential Services
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 34: Case Studies
CASE STUDIES 33
Slide 35: Case Studies: NextGen Top Performers – Sukhram Vishwakarma
CASE STUDIES : NEXTGEN TOP PERFORMERS “I have earned Rs. 77,889 From BFSI – Banking Services in just 1 month” SUKHRAM VISHWAKARMA Number of Accounts Opened 48 UTTAR PRADESH TIER 6 LOCATION Total Transaction Value ₹ 4,10,54,963 34
Slide 36: Case Studies: 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 Number of Financial RAJASTHAN 11,591 Transaction TIER 3 LOCATION 35 Total Transaction Value ₹ 96,78,600 35
Slide 37: Case Studies: 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 Number of MAHARASHTRA Transactions 2,491 TIER 1 LOCATION Total Transaction Value ₹ 66,30,608 36
Slide 38: Case Studies: NextGen Top Performers – Kanhaiya Lal
CASE STUDIES : NEXTGEN TOP PERFORMERS “I have earned Rs. 27,300 From Online Total Health care Service in just 1 month” KANHAIYA LAL Number of RAJASTHAN Transactions 182 TIER 3 LOCATION Total Transaction Value ₹ 1,82,000 37
Slide 39: Company Overview
COMPANY OVERVIEW 38
Slide 40: 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 41: Scope of Services: 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 Withd
Slide 42: Scope of Services: Assisted E-Commerce Services
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 43: Unique Features of Assisted E-Commerce Model
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES UNIQUE FEATURES OF ASSISTED E-COMMERCE MODEL Own The World’s Monopolistic Biggest E-mall : More than Offering of Marketplace & 6 Crore+ products Assisted Healthcare High Quality Products at Competitive Prices & Complete Healthcare Package : Tele Services
Slide 44: 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 43
Slide 45: 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 46: 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 47: NextGen Vakrangee Kendra Model
NEXTGEN VAKRANGEE KENDRA MODEL 46
Slide 48: NextGen Vakrangee Kendra Model
NEXTGEN VAKRANGEE KENDRA MODEL 47
Slide 49: NextGen Vakrangee Kendra – Our Presence
NEXTGEN VAKRANGEE KENDRA – OUR PRESENCE 11,700+ Outlets* 27 States & UTs 510+ Districts Covered 4,580+ Postal Code Covered 70% Presence in Tier V & VI Cities Fuel Station Outlets- IOCL: 419 Outlets, Nayara : 11 Outlets * - As of 31st March, 2021 * - 11,700+ Operational outlets 48
Slide 50: Huge Untapped Market: Overall Market Potential
HUGE UNTAPPED MARKET: OVERALL MARKET POTENTIAL POPULATION 1.35 BILLION 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 49
Slide 51: 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 52: 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 53: 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 54: 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 55: 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 56: Update on Awards & Recognition
UPDATE ON AWARDS & RECOGNITION 55
Slide 57: 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 58: Awards and Certifications
AWARDS AND CERTIFICATIONS • Vakrangee has been ranked amongst Top 100 Franchise Opportunities for the year 2021 by the Franchisee India in the Franchising World’s Annual Survey. • Vakrangee has been nominated in the ‘India’s Top 100 Franchisees’ list by the Franchisee India Magazine in the January 2
Slide 59: Board of Directors Team
BOARD OF DIRECTORS TEAM 58
Slide 60: 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 61: 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 62: Annexures
ANNEXURES 61
Slide 63: Kendra Evolution
KENDRA EVOLUTION 62
Slide 64: Kendra Evolution – Phase 1: E-Governance Player
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 65: Kendra Evolution – Phase 1
KENDRA EVOLUTION PHASE 1: INITIALLY AN E-GOVERNANCE PLAYER 64
Slide 66: Kendra Evolution – Phase 2: Banking BC Point Model
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 67: Kendra Evolution – Phase 2
KENDRA EVOLUTION PHASE 2: E-GOVERNANCE PLAYER TO A BANKING BC POINT MODEL 66
Slide 68: Kendra Evolution – Phase 3: Multi Speciality Store Model
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 69: Kendra Evolution – Phase 3
KENDRA EVOLUTION PHASE 3: E-GOVERNANCE PLAYER TO MULTI SPECIALITY STORE MODEL 68
Slide 70: Kendra Evolution – Phase 4: NextGen Assisted Digital Convenience Store
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 71: Thank You
Thank You 70