Virinchi Ltd. · NSE:VIRINCHI
Virinchi — Q3 FY2022 Earnings Presentation
49 slides from Virinchi's earnings presentation, Jan 28, 2022
Slide 1: Regulation 30 filing letter to BSE
Date: 28th January, 2022 To, The Manager, Dept. of Corporate Services, BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400001 Dear Sir/Madam, Sub: Investors Presentation-Reg. Ref: Script Code# 532372 With reference to the Regulation 30 of the SEBI( LODR) Regulations, 2015, please find
Slide 2: Investor Presentation
INVESTOR PRESENTATION
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Virinchi Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and
Slide 4: Rise of a Multicorn
Rise of a Multicorn UPI Credit Healthcare -vCard Virinchi Chain of Hospitals Cards Issued – 20,000+ Revenue - Rs. 1,610 Mn Credit Issued - Rs. 200 Mn/ EBITDA - Rs. 498 Mn month Healthcare Aggregator Credit Bazaar Business IDC & IT SaaS Revenue - Rs. 550 Mn Revenue - Rs. 1,350 Mn EBITDA - Rs. 113 Mn
Slide 5: 4 Revenue Streams
4 Revenue Streams 1. SaaS 2. IDC & IT Services Loan management solution for NBFC’s in US Datacenters at California and Atlanta IT Services (Security and Cloud ) 3. Credit Bazaar Providing Line of Credit for UPI transactions in India via mobile app, vCard 4. Healthcare Chain of 3 Hospitals with 700 b
Slide 6: 1st Revenue Stream - SaaS Business
1st Revenue Stream - SaaS Business
Slide 7: 1st Revenue Stream - SaaS Business
1st Revenue Stream - SaaS Business SaaS-based end-to-end loan management system for global clients Annuity Income business Adaptive pricing [Per transaction/ per license/ per store] SaaS Used by 18 NBFC’s in US across 20,000+ Point of Sale locations across 45 states in the US A mission-critical solu
Slide 8: SaaS Product Variants
»® SaaS Product Variants virinchi Limited QFund™ provides a Ji MSenmereelits Instalment. Title / Buy Now, Pay Line of Credit complete solution for Salary Loan Auto Equity Later (BNPL) (Secured / managing the Payday Unsecured) loan t ions loans that are d bursed to borrowers in return for checks draw
Slide 9: SaaS - Works as an Omni-channel
SaaS - Works as an Omni-channel Loan Pay Anywhere Website Anywhere Mobile SaaS Store
Slide 10: Cross Sectional View of SaaS
A) e Cross Sectional View of SaaS virinchi Limited Integrations “Bek crveriry veritec ERR Cbefax Ea ieee. Qmoxmind
Slide 11: SaaS – 7 Years' KPIs
SaaS – 7 Years’ KPIs Year wise Loans (# in Million) Year wise Loans ( $ Billion) 29,000,000 $14,700,000,000 Total Total Loan Number of Amount Loans Sanctioned Sanctioned Year wise Payments (# in Million) Year wise Payments ( $ Billion) 62,900,000 $14,000,000,000 Total Total Amount Number of Processe
Slide 12: SaaS – 7 Years' KPIs
SaaS – 7 Years’ KPIs Year wise Disbursements (# in Million) Year wise Customer (Borrower) Acquisition (# in 23,100,000 Million) 12,300,000 Total Number 1.6 Total of Number of Disbursements 1.4 Unique Borrower 1.2 Accounts 1.0 0.8 0.6 Year wise Disbursements ($ Billion) 0.4 $9,920,000,000 0.2 Total D
Slide 13: SaaS Financials [FY 2020-21]
SaaS Financials [FY 2020-21] Rs. Rs. PEER COMPARISON
Slide 14: SaaS Financials [Q3 & 9M – FY 21 & 22]
SaaS Financials [ Q3 & 9M – FY 21 & 22] Segmental Revenue Segmental EBIT Comparative analysis [ Q3– FY 21 & 22] Comparative analysis [ Q3– FY 21 & 22] 34.48 29.58 3.76 3.28 FY21 FY22 FY21 FY22 Comparative analysis [ 9M– FY 21 & 22] Comparative analysis [ 9M– FY 21 & 22] 102.32 12.13 89.79 9.68 FY21
Slide 15: 2nd Revenue Stream – Data Centres & IT Services
2nd Revenue Stream – Data Centres & IT Services Speed, Scalability and Agility
Slide 16: IDC & IT Services - Journey so far
IDC & IT Services - Journey so far Boutique Web hosting services SOC-2 Certified data centers for with data centers in California & application hosting Atlanta Manages turnkey projects for US clients IDC A 75 people US team together with a 150 people across industries with multiple engagements in He
Slide 17: Data Centre - Robustness
Data Centre - Robustness Industry best uptime Multi-level data Multi-level redundancy SLA of 99.995% & backups, for power, network, industry-lowest design 24/7 monitoring & servers & storage. PUE. automated alerts. Hyperscale data center, Choice of Hypervisor Data replication via Implementation spre
Slide 18: IDC & IT Services Financials [Q3 & 9M – FY 21 & 22]
IDC & IT Services Financials [Q3 & 9M – FY 21 & 22] Segmental Revenue Segmental EBIT Comparative analysis [ Q3– FY 21 & 22] Comparative analysis [ Q3– FY 21 & 22] 5.38 15.5 12.87 0.65 FY21 FY22 FY21 FY22 Comparative analysis [ 9M– FY 21 & 22] Comparative analysis [ 9M– FY 21 & 22] 10.26 42.4 40.74 2
Slide 19: 3rd Revenue Stream - Credit Bazaar
3rd Revenue Stream - CREDIT BAZAAR Credit Service Aggregator Business TM vCard Line of Credit for UPI Payments via Mobile App
Slide 20: vCard USP's
vCard USP’s “Acceptance network-Independent” credit platform using UPI rails for transaction closure. Credit decisioning based on Machine learning based multi-parametric model End-to-end digitized loan life cycle across origination, on boarding, disbursals, collections, servicing and regulatory comp
Slide 21: UPI-Based Credit Card
UPI-Based Credit Card virinchi Limited Acceptance network dependence No No Yes Yes Yes 2 | ML based Credit Rating Yes Yes Yes Yes Yes 3 | Equity Loss due to Loan defaults No Yes Yes Yes Yes 4 | Income from customer Onboarding Yes No No No No 5 | Cash Back/ Discounts impacting P&L No Yes Yes Yes Yes
Slide 22: KPIs of vCard as of Jan 15th 2022
KPIs of vCard as of Jan 15th 2022
Slide 23: Industry Opportunity and Growth Prospect
Industry Opportunity and Growth Prospect Existing 5.89 Cr Credit Card ~80 Cr+ underpenetrated Potential for INR 10 Lakh Cr holders are <5% of the potential customers LOC market *Internal estimate - basis data procured from *Source: Statista (Published on July 09 2021) Statisa on 9 July 2021 *Interna
Slide 24: 4th Revenue Stream- Healthcare Business
4th Revenue Stream- Healthcare Business
Slide 25: Healthcare Journey (2016 – Till Date)
Healthcare Journey (2016 – Till Date)
Slide 26: Healthcare Metrics
Healthcare Metrics Cardiology Orthopedics Nephrology Neurology Emergency Medicine Key Associated Treated Key Associated Treated Key Associated Treated Key Associated Treated Key Associated Treated Faculties Doctors Patients Faculties Doctors Patients Faculties Doctors Patients Faculties Doctors Pati
Slide 27: Right to Science
_ . @ ie Right to Science virincht Ll RIGHT TO SCIENCE IN THERAPY The future is all about stem cell-based therapies organ regeneration, adoptive immune therapies, check point inhibition therapies, reconstruction surgeries, gene editing, ully-quided EQUIPMENT BASED ON surgeries, implants and transpla
Slide 28: Patient Experience Patient Data
Patient Experience Patient Data
Slide 29: Digitalized Healthcare
PT Digitalized Healthcare — “MOBILE” VIDEO CONSULTATION Virinchi provides video consultations with doctors via smartphones. MEDICAL EVENT BOOK KEEPING Virinchi’s mobile app enables each patient to have complete medical history of every test and hospitalization record on the cloud and on the mobile a
Slide 30: V23 - Healthcare Aggregator
Virinchi Tertiary Care Hospital (Metro 1) V23 - Healthcare Aggregator Labs & Diagnostics Doctors ( to be launched soon) Centers Small Town/District Clinics Virinchi Tertiary Care Nursing Homes Hospital (Metro 5) Primary Healthcare Physical Medical Virinchi Tertiary Care V23 Pharmacy Logistics Store
Slide 31: Healthcare Financials [FY 2020-21] Peer Comparison
Healthcare Financials [FY 2020-21] ₹ 160.85 Cr Revenue Peer Comparison
Slide 32: Healthcare Financials [Q3 & 9M – FY 21 & 22]
Healthcare Financials [Q3 & 9M – FY 21 & 22] Segmental Revenue Segmental EBIT Comparative analysis [ Q3– FY 21 & 22] Comparative analysis [ Q3– FY 21 & 22] 35.44 35.85 3.13 0.42 FY21 FY22 FY21 FY22 Comparative analysis [ 9M– FY 21 & 22] Comparative analysis [ 9M– FY 21 & 22] 21.23 144.51 116.27 6.84
Slide 33: Management Team
2® ® virinchi Limited Management Team
Slide 34: Chairman Emeritus's Strategic Overview
Chairman Emeritus’s Strategic Overview Alumnus of IIT Madras, First Generation Serial Entrepreneur with interests in ICT, Healthcare, Education, Life Sciences and Entertainment Commenting on the Strategy Virinchi adopts “ Bundling and Unbundling” strategy to enhance enterprise value. We see the busi
Slide 35: Management Team
Management Team SATYANARAYANA VEDULA MADDALA VEERA SATYAJEET PRASAD ABHISHEK GOEL SUYOG DESARDA Vice Chairman & SIRINIVASA RAO Chief Executive Officer VP Business Development VP Strategy & Business Development Executive Director Group CFO & B.Tech (IIT-KHP), MBA- (IIM-L) B.Tech (IIT-D), MBA (IIM-C)
Slide 36: Finance & Compliance Team
Finance & Compliance Team Deepthi Gadde Vineetha Reddy Jekkileti Vaishali Sabita D. Ravindranath Tagore Kolli CFO (Virinchi Capital) Sr. Manager (Finance & Strategy) Sr. Manager (Finance & Strategy) Company Secretary FCA CA CA CS ▪ 17+ years of experience in ▪ 3 years of experience in handling • 3 y
Slide 37: Technology Team
Technology Team Aravind Hiremath Amar Sivaji Pendyala Rajesh Putta President IT COO CTO B.E (CSE) MS (IT) MS (IT) ▪ 22 years experience in Design & ▪ 18+ years in Development & ▪ 15+ years experience in IT. Development including Enterprise Delivery of Enterprise IT ▪ Worked at ADP as Chief Architect
Slide 38: Healthcare Team
Healthcare Team Dr. Srinivas Samavedam Dr. K.S. Nayak Dr. Sumeet Sinha Dr. Avinash Dal Dr. Sree Durga Patchava Director Advisor to the Board Sr. Interventional Cardiologist Cardiothoracic and Vascular Surgeon Fertility Specialist & Gynaecologist MD, FRCP, MRCP, MHA MD, DNB(Nephrology), FISN, MBBS, M
Slide 39: Financials
Financials Causing Systems Perform Business
Slide 40: Segmental Performance (Rs. Cr.)
Segmental Performance (Rs. Cr.) Segmental Revenue Segmental EBIT Segmental EBIT Margin 24.20% 23.09% 18.24% 18.07% 16.86% 11.88% 162.09 10.79% 10.78% 160.85 19.25 144.51 11.54 63.27 6.15% 54.77 29.06 24.37 42.4 151.22 34.91 3.37 135.44 10.26 89.79 14.62 9.68 FY20 FY21 9MFY22 FY20 FY21 9MFY22 FY20 FY
Slide 41: Consolidated Income Statement [Q3 & 9M FY 2021 – 2022]
Consolidated Income Statement [Q3 & 9M FY 2021 – 2022] Particulars (Rs. Cr.) Q3FY22 Q3FY21 Change 9MFY22 9MFY21 Change FY21 FY20 Consolidated Revenue 83.55 93.74 -10.87% 285.40 272.77 4.63% 365.19 383.16 Material Cost 5.09 7.09 25.84 19.07 23.09 23.78 Employee Expenses 25.14 28.25 77.63 84.36 109.90
Slide 42: Consolidated Balance Sheet
Consolidated Balance Sheet Sources of Funds Application of Funds Rs. Cr. Mar-21 Mar-20 Rs. Cr. Mar-21 Mar-20 Equity Fixed Assets Tangible Assets (Including CWIP) 330.59 309.94 Equity Share Capital 36.99 32.72 Intangible Assets 83.01 89.46 Other Equity 338.11 341.45 Lease hold Assets (ROU) 91.88 - NE
Slide 43: Historical Performance
Historical Performance Particulars (Rs. Cr.) FY16 FY17 FY18 FY19 FY20 FY 21 CAGR Consolidated Revenue 220.5 288.6 342.5 411.1 383.2 365.19 10.6% Material Cost - 6 13 24 24 23 Employee Expenses 93 123 131 128 123 110 Administration Expenses 94 94 102 134 124 125 EBITDA 33.3 65.8 96.9 124.2 112.3 106.
Slide 44: Historical Performance (Rs. Cr.)
Historical Performance (Rs. Cr.) EBITDA 5Y CAGR : 26.2% 124.18 411.11 112.28 106.7 96.92 383.16 65.8 5Y CAGR : 10.6% 365.19 341.42 FY17 FY18 FY19 FY20 FY 21 5Y CAGR ~11% 286.68 PAT 5Y CAGR : -30.3% 58.92 46.46 218.34 33.02 23.6 2.67 138.77 FY17 FY18 FY19 FY20 FY21 112.97 18.9 78.68 EPS 68.05 5Y CAGR
Slide 45: Performance Metrics
Performance Metrics Average Return on Capital Employed Average Return on Equity Total Debt : Equity 20.6% 20.0% 0.90 14.0% 14.3% 14.3% 14.0% 0.77 16.5% 14.2% 13.8% 0.58 11.4% 0.51 11.2% 0.45 0.43 0.7% FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY 21 FY16 FY17 FY18 FY19 FY20 FY21
Slide 46: Stock Performance & Movement (2001 – 25th Jan 2022)
Stock Performance & Movement (2001 – 25th Jan 2022) “There are decades where nothing happens; and there are weeks where decades happen” - Vladimir Ilyich Lenin.
Slide 47: Bundling to Achieve Scale and Size
Bundling to Achieve Scale and Size SaaS IDC & IT Credit Bazaar Healthcare Increase business Increase Marketing Add IT Teams Acquire hospitals from existing Spend to acquire customers and increase beds. Customers Acquire new Add Server Farms Start Brownfield customers Add Lending Projects Partners (B
Slide 48: Way Forward: Value creation by Vanilla & Tequila Strategy
Way Forward: Value creation by Vanilla & Tequila Strategy 2024-25 Vanilla Growth New product / Tequila Shot Vanilla Model is an organic Service Launch Mergers & Demergers growth model of enhancing top line by acquiring more clients, expanding to new geographies and launching new products by 2023-24
Slide 49: Thank You
THANK YOU For further information, Please contact Virinchi Ltd. CIN - L72200TG1990PLC011104 Mr. Ravindranath Tagore [email protected] www.virinchi.com