Vakrangee Limited · NSE:VAKRANGEE
Vakrangee — Q1 FY2016-17 Earnings Presentation
60 slides from Vakrangee's earnings presentation, Aug 27, 2016
Slide 1: Q1 FY2016-17 Results Update & Investor Presentation
We Provide the Last Mile Connectivity Vakrangee Limited Q1 FY2016-17 Results Update & Investor Presentation August 27, 2016
Slide 2: 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 3: Table of Contents
Table of Contents Our Vision 2020 04 Q1 FY2016-17 Results Update 07 Dividend Pay-Out Policy 13 Financial Overview & Shareholding Structure 15 Current Rollout Status 21 IOC – Strategic Tie Up 24 Company Overview 27 Vakrangee Kendra – Business Overview 31 E-Governance Projects 48 D
Slide 4: Our Vision 2020
Our Vision 2020 • We are a Technology-driven company, focussing on creating India’s largest network of last-mile retail points-of- sale. • Our aim is to potentially enable every Indian to seamlessly benefit from Financial Inclusion, Social Inclusion, Digital India, Skill Development , Employment , G
Slide 5: Our Vision 2020 – Update on Expansion Plan
Our Vision 2020 – Update on Expansion Plan Executed FY2016 FY2017 FY2018 FY2019 FY2020 Till Date – June 16 Rural 15,000 25,000 35,000 45,000 50,000 16,104 Kendras Urban 5,000 10,000 15,000 20,000 25,000 5,716 Kendras Total 20,000 35,000 50,000 65,000 75,000 21,820 Set to rollout the Expansion Plan f
Slide 6: Q1 FY2016-17 Results Update
Q1 FY2016-17 Results Update Vakrangee Limited
Slide 7: Q1 FY2016-17 Results Highlights
Q1 FY2016-17 Results Highlights In Rs Mn Consolidated REVENUES EBITDA & EBITDA Margin PAT & PAT Margin 9,175.4 27.0% 13.2% 24.1% 12.3% 7,043.0 1214.1 2214.7 1900.5 867.0 30.3% 16.5% 40.0% Q1FY2015-16 Q1FY2016-17 Q1FY2015-16 Q1FY2016-17 Q1FY2015-16 Q1FY2016-17 EBITDA (Rs. Mn) EBITDA Margin % PAT (Rs.
Slide 8: Q1 FY2016-17 Key Highlights
Q1 FY2016- 17 Key Highlights KEY OPERATIONAL UPDATES • Update on Expansion Plan – • Currently 21,820 outlets are completed & operational across 16 states. • Update on Tie-Ups & Alliances – • Insurance Vertical – New Tie ups announced in Life, Non Life & Health Segments • Life – Bajaj Allianz, HDFC S
Slide 9: Strong Corporate Governance
STRONG CORPORATE GOVERNANCE • Fairly Independent Board with 6 out of Total 8 Directors being Independent. Led by Mr. BOARD OF DIRECTORS Ramesh Joshi, Ex-ED at SEBI & over 3 decades of experience at RBI. • Nominee Director on Board representing the Life Insurance Corporation of India • Company has re
Slide 10: Update on MSCI ESG Rating
UPDATE ON MSCI ESG RATING MSCI HAS INITIATED COVERAGE OF VAKRANGEE WITH AN ESG RATING OF 'BBB’. Excerpts from the Report - “The company's access to finance initiatives include the provision of core banking, insurance, and financial services to underserved populations in rural, semi-rural, and urban
Slide 11: Q1 FY2016-17 Results – Segmental Analysis (Standalone)
Q1 FY2016-17 Results – Segmental Analysis (Standalone) Q1 FY2016-17 Q1 FY2015-16* FY2015-16* FY2014-15* Particulars YoY YoY (Rs Mn) % of % of % % of % of % Total Total Total Total Total Revenues 9116.4 100.0 7009.6 100.0 30.1 31686.1 100.0 27753.7 100.0 14.2 Vakrangee Kendra 5505.9 60.4 3493.0 49.8
Slide 12: Consolidated Financial Statements
Consolidated Financial Statements Key Profit & Loss Statement Items Particulars (Rs. Mn.) Q1 FY2016-17 Q1 FY2015-16 YoY % FY2015-16 * FY2014-15* YoY % Total Income from Operations 9175.4 7043.0 30.3% 31,907.4 27,804.8 14.8% Total Expenses (Excluding Depreciation & 23,687.1 20,572.6 15.1% 1782.9 1004
Slide 13: Dividend Pay-Out Policy
Dividend Pay-Out Policy DIVIDEND PAY-OUT POLICY • FROM FY2016-17 ONWARDS, THE BOARD HAS APPROVED TO MAINTAIN A DIVIDEND PAY-OUT IN THE RANGE OF 15%-25% OF PROFITS AFTER TAX (PAT) ON CONSOLIDATED FINANCIALS. RATIONAL FOR DIVIDEND PAYOUT RANGE: • The company stands committed to create sustainable shar
Slide 14: Financial Overview & Shareholding Structure
Financial Overview & Shareholding Structure Vakrangee Limited
Slide 15: Financial Overview & Shareholding Structure
Financial Overview & Shareholding Structure Last 3 Year Financials As on 26.08.16 (BSE) 32.4% 28.9% Market cap (Rs. Mn) 1,03,159.74 27.1% 27.7% 25.9% Price (Rs.) 194.95 26.2% 31,907 27,805 19,519 No. of shares outstanding (Mn) 529.16 FY14 FY15 FY16 Face Value (Rs.) 1.00 Revenues (Rs. Mn) EBITDA Marg
Slide 16: Business Update - Amazon in Vakrangee Kendra
Business Update - Amazon in Vakrangee Kendra FIRST OF ITS KIND : EXCLUSIVE AMAZON RETAIL OUTLET Plan to open such Exclusive Amazon Retail outlets at all the District Levels. ADVANTAGE CONSUMER : • Access to entire 60 mn Product range from Amazon MALAD MUMBAI OUTLET • Genuine Product at Competitive P
Slide 17: Exclusive Amazon Store in Vakrangee Kendra
Exclusive Amazon Store in Vakrangee Kendra Malad, Mumbai, Maharashtra Vakrangee Limited 17
Slide 18: Amazon in Vakrangee Kendra
Amazon in Vakrangee Kendra Vakrangee Limited 18
Slide 19: Marketing Campaign by Amazon near Vakrangee Kendra Outlets
Marketing Campaign by Amazon near Vakrangee Kendra Outlets Marketing Campaign on Rickshaw Marketing Campaign on Mobile Van Marketing Campaign on Moving Poster Vakrangee Limited 19
Slide 20: Current Rollout Status
Current Rollout Status Vakrangee Limited
Slide 21: Vakrangee Kendra: Rollout Status as on June 30, 2016
Vakrangee Kendra: Rollout Status as on June 30, 2016 Rural Urban States Total Branches Branches RURAL BRANCHES Rajasthan 8481 2484 10965 Maharashtra 3278 1734 5012 16,104 13,107 Uttar Pradesh 3226 521 3747 Gujarat 178 179 357 22.9% Madhya Pradesh 587 308 895 Punjab 50 151 201 Haryana 71 133 204 Q1FY
Slide 22: Vakrangee Kendra: Strong Focus from Financial Inclusion to Financial Security
Vakrangee Kendra: Strong Focus from Financial Inclusion to Financial Security Quarter Urban Strong Ramp-up of Urban Branches Ending Branches New Initiatives to promote 5,716 Financial Security Mar-14 15 Sep-14 478 Mar-15 1,288 1,288 Sep-15 2,217 Mar-16 5,006 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Jun/16
Slide 23: Vakrangee Kendra: Urban Branches in Mumbai
Vakrangee Kendra: Urban Branches in Mumbai BRANCHES UP & RUNNING ACROSS MUMBAI Dahisar East Ambawadi R/North (004) Jawahar Ngr, Goregaon W P/South Kurar Village, Malad East P/North Saki Naka,Peninsula Grand L (153) Airoli (BOB) (BOB) (051) (BOB) (035) (BOB) (BOB) Deonar Govandi, Tata Nagar M/East Ja
Slide 24: Strategic Tie Up with Indian Oil Corporation Limited
Vakrangee Kendra: STRATEGIC TIE UP WITH INDIAN OIL CORPORATION LIMITED FOR PAN INDIA • Strategic tie-up with Indian Oil Corporation Limited (IOC), India's largest commercial enterprise for setting up Vakrangee Kendra at its retail outlets (distribution network). • To set up Vakrangee Kendra in more
Slide 25: Launch of Vakrangee Kendra at Indian Oil Corporation
Vakrangee Kendra: LAUNCH OF VAKRANGEE KENDRA AT INDIAN OIL CORPORATION BANDRA, MUMBAI OUTLET • Vakrangee Kendra shall be set up in all IOC Filling/Gas station located across India. • Initially, 4 Vakrangee Kendra outlets are launch in Mumbai and 2 more in Rajasthan. Photograph of Vakrangee Kendra at
Slide 26: Company Overview
Company Overview Vakrangee Limited 26
Slide 27: Business Evolution & Future Transformation
Business Evolution & Future Transformation BUSINESS EVOLUTION (E-GOVERNANCE) BUSINESS TRANSFORMATION (VAKRANGEE KENDRA) 1990 Company Incorporation 2013 Financial Inclusion Project – MoF & RBI 1993 Computerisation of Central Election Commission 2014 WLA License – RBI 2005 MCA 21 Project - Ministry of
Slide 28: Our Businesses
Our Businesses E-GOVERNANCE VAKRANGEE KENDRA Systems Integrator & End-to-End Banking (Business Correspondent) & ATM, Insurance, Services Provider E-Governance, E-Commerce & Logistics • More than 20 years of consistent • Setup & manage 75,000 Vakrangee Kendra Outlets and covering the presence in 100%
Slide 29: Business Transformation – Unique Opportunity, Expansive Growth Potential
Business Transformation – Unique Opportunity, Expansive Growth Potential UNIQUE UNIQUE OPPORTUNITIES CAPABILITIES • Financial Inclusion - i) underpenetrated banking access with only 35.2% bank accounts per population, ii) underpenetrated ATM market with only 112 ATMs per million of population. • Rob
Slide 30: Vakrangee Kendra – Business Overview
Vakrangee Kendra – Business Overview Vakrangee Limited 30
Slide 31: Financial Inclusion Opportunity: India is Still Largely Under-Banked
Financial Inclusion Opportunity: India is Still Largely Under-Banked SIGNIFICANT UNDER-PENETRATION OF FINANCIAL STRONG GOVERNMENT FOCUS ON FINANCIAL INCLUSION IN INDIA SERVICES IN INDIA • India is still largely under-banked, with only • The current government has taken cognizance of the 35.2% of pop
Slide 32: Vakrangee Kendra: Scope of Services
Vakrangee Kendra: Scope of Services Technology Intensive Retail Distribution Platform for last mile touch points delivering services across Banking & ATM, Insurance, e-Governance, e-Commerce and Logistic services to domains on a real-time basis to potential 250 mn customers across underserved rural
Slide 33: Vakrangee Kendra: BC Agreements with Banks
Vakrangee Kendra: BC Agreements with Banks National BC Agreements Common BC Agreements Sr No Bank Tie-Ups Sr No Bank Tie-Ups 1 Bank of Baroda 2 Bank of India 1 Bank of India 3 Baroda Rajasthan Gramin Bank 4 Indian Bank 2 Punjab National Bank 5 Indian Overseas Bank 6 Jaipur The Gramin Bank 3 Union Ba
Slide 34: Vakrangee Kendra: Key Business Alliances
Vakrangee Kendra: Key Business Alliances BANKING E-GOVERNANCE INSURANCE E-COMMERCE LOGISTICS Vakrangee Limited 34
Slide 35: Vakrangee Kendra: Business Model
Vakrangee Kendra: Business Model EVOLVED BC MODEL BENEFITS • All the Vakrangee Kendras operate on FRANCHISEE MODEL. Exclusive Brick & Mortar BC per Sales • Franchisee manages day-to-day operations. Service Area(SSA) • All operational costs are borne by the Franchisee. OPERATING Real-time & Interoper
Slide 36: Vakrangee Kendra: Technology Setup
Vakrangee Kendra: Technology Setup Ring Fenced Banking Bank CBS Bank Accounts E-Commerce opening Partner Systems Application Form Cash Withdrawal/ Deposit Bank FI Servers Application Form E-Governance Cheque Book Partner Systems V-SAT Signature Bank Customer PTS Note: Vakrangee PTS – Pass Through Se
Slide 37: Vakrangee Kendra: Risk-Free Banking by Pre-Paid Deposit in the Settlement Account
Vakrangee Kendra: Risk-Free Banking by Pre-Paid Deposit in the Settlement Account REAL-TIME SETTLEMENT WITHOUT ANY RECONCILIATION ERROR RISK AND CASH MISAPPROPRIATION RISK • Each Vakrangee Kendra Franchisee is required to maintain a current settlement account with the parent bank. • This current set
Slide 38: Vakrangee Kendra: White Label ATM – Comparative Analysis
Vakrangee Kendra: White Label ATM – Comparative Analysis COMPETITIVE ADVANTAGES ATM OPERATING COSTS PEERS VAKRANGEE URBAN BRANCH + ATM MODEL Rent Expense COST SYNERGIES • No requirement of security guard as the ATM Civil Work & Interiors is located inside the urban BC branch • Sharing of Civil Work,
Slide 39: Vakrangee Kendra – E-Commerce
Vakrangee Kendra – E-Commerce Vakrangee Limited 39
Slide 40: E-Commerce Opportunity: India to be the fastest growing Market
E-Commerce Opportunity: India to be the fastest growing Market E-COMMERCE PENETRATION IN INDIA as % of total • India, has low internet penetration of 17% of the total population population in comparison to 46% in China and more than 80% in Japan and US • India e-commerce is expected to increase shar
Slide 41: E-Commerce: Amazon India Tie-up
E-Commerce: Amazon India Tie-up MARKET SHARE AMONG E-COMMERCE SPACE Market Share % • Amazon has acquired 22.5% market share within 3 years after starting its ecommerce operations in India (June 20.0% Flipkart 2013) 43.0% Amazon • Amazon India had 23.6 million unique visitors in May, 14.5% edging pas
Slide 42: Vakrangee Kendra – Logistics
Vakrangee Kendra – Logistics Vakrangee Limited 42
Slide 43: Business Update – To Provide the Logistic Services through last mile delivery
Business Update – To Provide the Logistic Services through last mile delivery Incorporate a Company, Vakrangee Logistics Private Limited, subsidiary of Vakrangee Limited to primarily provide logistic services such as last mile delivery to various business partners and business verticals. To Leverage
Slide 44: Logistics – Why Vakrangee?
Logistics – Why Vakrangee ? FY2016 – CURRENT PRESENCE NO OF OUTLETS NO OF STATES NO OF DISTRICTS NO OF POSTAL CODES 20,677 15+ 300+ 4,000+ FY2020 – TARGETED PRESENCE NO OF OUTLETS NO OF STATES NO OF DISTRICTS NO OF POSTAL CODES 75,000 PAN INDIA 650+ 19,000+ KEY CHALLENGES FOR CURRENT PLAYERS - • Cur
Slide 45: Logistics – Service Offering
Logistics – Service Offering Vakrangee Kendra – Postal code “1” Pilot Rollout Operation - • Started with 19 Postal codes and recently opening further in 50 more Postal codes • Presence in 3 states • Delivered and Pickup more than 20,000 packages Logistics – Vakrangee Fulfillment Master Kendra Center
Slide 46: Vakrangee Kendra: Well Established Last Mile Infrastructure
Vakrangee Kendra: Well Established Last Mile Infrastructure Independent Project Management Audit Corporate PMO Head Quarters State PMO State Office Division Office 1 Division Office 2 Division Office N District Office 1 District Office 2 District Office N Block Office 1 Block Office 2 Block Office N
Slide 47: E-Governance Projects
E-Governance Projects Vakrangee Limited
Slide 48: E-Governance Projects
E-Governance Projects Vakrangee undertakes only Mission Mode Projects under the National E-Governance Plan (NEGP) which continue to be implemented regardless of the changing political parties and bureaucrats. There is strict compliance in the NEGP project tendering process, which is governed by the
Slide 49: Directors & Leadership Team
Directors & Leadership Team Vakrangee Limited
Slide 50: Independent / Nominee Directors on the Board
Independent / Nominee Directors on the Board Strong Board of Directors RAMESH M. JOSHI • Has about 40 years of business experience in the banking industry. Non Executive • Has worked with RBI for over 3 decades and a former ED of SEBI Independent • Holds a Bachelor’s degree in Arts from the Universi
Slide 51: Leadership Team
Leadership Team STRONG MANAGEMENT TEAM IN PLACE TO DRIVE NEXT PHASE OF GROWTH ACROSS ALL BUSINESSES • Has about 25 years of business experience. Main functions and areas of responsibilities in the Company include policy formulation and decision making. DINESH • Has received a memento from the former
Slide 52: Annexure
Vakrangee Annexure
Slide 53: Vakrangee Kendra: Banking Transaction – Process Flow
Vakrangee Kendra: Banking Transaction – Process Flow Transaction flow for AEPS balance enquiry/cash deposit/withdrawal OFF US: Interoperable - Vakrangee Kendra - Bank 1, Customer - Bank 2 ON US: Vakrangee Kendra - Bank 1, Customer - Bank 1 UID Authentication Bank 2 Bank 1 UID Authentication System C
Slide 54: Financial Inclusion: Evolution of Financial Inclusion Models in India
Financial Inclusion Evolution of Financial Inclusion Models in India 2004 RBI sets up Khan Commission to look into financial Mobile BC Fixed BC inclusion Brick & Motor Bank branch opened in each 2005 RBI introduces “No Frill” accounts concept Gram Panchayat by BC BCs visited villages periodi
Slide 55: Financial Inclusion: RBI's Recent Initiative
Financial Inclusion RBI’s Recent Initiative Uttar Pradesh North Eastern States SREI SAHAJ - @0.28% RFP cancelled (Part 1) & FINO -@ J&K 0.35% (Part 2) HIMACHAL Bihar PRADESH FINO - @0.05% (Part 1) Rajasthan and Delhi PUNJAB UTTARAKHAND &@0.11% (Part 2) Vakrangee - @ 0.37% HARYANA ARUNACHAL PRADESH W
Slide 56: Vakrangee Kendra: Franchisee On-Boarding Process
Vakrangee Kendra: Franchisee On-Boarding Process 3 - 6 MONTHS Compliance Exams to be cleared and Vakrangee On-boarding Franchisee On-boarding Go Live Franchisee background check - • Indian Institute of Banking & Finance (IIBF – For Financial • Campaigning to • Dedicated Settlement • Deployment of IT
Slide 57: Awards and Certifications
Awards and Certifications Awards and Accolades Certifications • Vakrangee has been features in 11 Indian companies, up from an all-time low of eight last year by Forbes Asia’s Best Under a Billion list for 2015 • MSCI ESG Research Inc. has scored Vakrangee 10 out of 10 for the research conducted for
Slide 58: Vakrangee Kendra
Vakrangee Kendra Vakrangee Limited 58
Slide 59: Vakrangee Kendra
Vakrangee Kendra Urban Kendra Rural Kendra Vakrangee Limited 59
Slide 60: Thank You
Thank You The Presentation is available on http://vakrangee.in/company-downloads/corporate-profile.pdf