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Conference Call Overview • Date of Call: July 17, 2023 • Submitted Transcript: July 19, 2023, to BSE and NSE • Host: Mr. Dinesh Nandwana, Managing Director & Group CEO • Q&A Format: One question per participant to ensure smooth session • Transcript Availability: Publicly accessible on the company's website • Communication Signed By: Sachin Khandekar, Company Secretary
Financial Highlights • Quarter Ending: June 30, 2023 • Total Income: Increased by 14.7% to Rs. 55.9 crore • EBITDA: Rose by 55.9% to Rs. 6.9 crore • PAT: Significant increase of 716.7% to Rs. 0.49 crore • Future Revenue Target: $1 billion by 2030 • Gross Transaction Value Target: $150 billion by 2030
Business Model and Strategy • Dual Business Model: • Vakrangee Kendra physical outlets • BharatEasy mobile Super app • Rural Market Focus: Over 21,000 active outlets, 84% in deep rural areas • Master Franchisee Network: Aiming for 100% district coverage by March 2024 • Outlet Expansion Goal: Increase from 21,000 to 300,000 outlets
Master Franchisee Impact • Role: Exclusive partners at the district level, enhancing operational support • Training: Comprehensive training for local teams to support franchisees • Cost Structure: Variable cost model aligning interests, improving operating margins • Margin Goals: Sustainable margins of 15-16% by 2030
Digital Economy Transition • Shift to Digital: Positioning as a neo bank focusing on non-cash banking services • Response to Digital Payments: Emphasizing diverse product offerings to adapt to cashless trends • Partnerships: Exploring collaborations with OEMs and leveraging ONDC for e-commerce growth
Conclusion • Future Outlook: Focus on building a scalable foundation through Master Franchisee model and expanding non-cash transaction capabilities. • Further Inquiries: Attendees directed to the company's website for additional resources.
Conference Call Details • Date: June 2, 2023 • Transcript submitted to BSE and NSE • Led by: Mr. Dinesh Nandwana, Managing Director and Group CEO • Date of Call: May 30, 2023 • Signed by: Sachin Khandekar, Company Secretary
Demerger Announcement • Final approval by National Company Law Tribunal (NCLT) • Formation of two entities: • Vakrangee Limited: Focus on retail-centric business • VL E-Governance & IT Solutions Limited • Expansion plans: • Targeting 100% district coverage in rural India by March 2024 • Appointment of master franchisees in 234 districts
Financial Performance • Total income for FY 2023: Rs. 198.70 crore • Profit after tax: Rs. 1 crore • Transitioning to a non-cash-based banking model • Targeting $1 billion in revenue and over $75 billion in gross transaction value by 2030
Sustainability and Governance • High ranking in ESG performance • Commitment to corporate governance and transparency • Restructuring for enhanced management efficiency
Q&A Highlights • Impact of demerger on Kendra business and revenue • Transition from debt-free to having loans post-demerger • Current debt: Rs. 45 crore for operational needs • Reduction in outlet numbers from 24,000 to 20,000 • Role of Master Franchisees in business opportunities • Strategic initiatives: • NextGen Vakrangee Kendra 2.0 format • Focus on district-level Master Franchisees • Expected growth in store output and scalability
Future Outlook • Aim to establish Master Franchisees in all 764 districts by March 2024 • Anticipated significant growth in network size and revenue • Completion of eGovernance entity demerger expected within 45 days
Conference Call Details • Date: February 3, 2023 • Submitted Transcript: February 6, 2023 • Led by: Mr. Dinesh Nandwana, Managing Director and Group CEO • Availability: Transcript accessible on the company's website • Signed by: Sachin Khandekar, Company Secretary
Company Positioning and Expansion • Focus: Leading market platform for rural India • Outlets: Over 24,887 across 33 states (Tier 4 to 6 locations) • Goal: 100% district coverage through master franchisees • Recent Initiatives: Franchisee incentives driving interest in new acquisitions
Financial Performance (Q3 FY 2023) • Bank Accounts Opened: 400,000 • Insurance Policies Issued: 300,000 • Banking Transactions: Nearly 1.89 crore • Revenue Growth: 20.16% year-on-year • Profit Drop: 92.7% due to reinvestments in incentives and expansion • Future Plans: Launch of Bharat Easy Mobile Super App for integrated banking
Demerger and Business Strategy • Approved Demerger: Non-core E-governance and IT/ITES businesses • Expected Outcome: Unlock core business potential and improved profitability post-demerger • Outlet Upgrade: Transition to Next Gen 2.0 format
Sustainability and Corporate Governance • Global Recognition: First in Sustainalytics ESC Risk rating for software and service industry • S&P Global Sustainability Yearbook 2022: Bronze class spot • UN Global Compact: Signatory aligning with UN Sustainable Development Goals • Assurance Auditor: Grant Thornton appointed for corporate governance
Q&A Highlights • Profitability Outlook: Subdued due to sharing incentives; long-term growth strategy emphasized • Master Franchisees: 113 appointed; goal to cover all 764 districts by year-end • Demerger Timeline: Final stages with no significant impact on Kendra business • Future Growth Plans: Master franchise program to manage operations and expand outlet network
Long-term Vision • Target: Establish presence in every district with around 75,000 outlets • Outlet Updates: Aligning with government digital banking initiatives for growth impacts