VAKRANGEE CORP PRESENTATION
MAY 10,2019
|
VAKRANGEE
|
Mar '19
|
Dec '18
|
Sep '18
|
Jun '18
|
Mar '18
|
|
Net Sales/Income from operations
|
101.46
|
96.79
|
298.46
|
1,011.51
|
1,846.94
|
|
Purchase of Traded Goods
|
65.95
|
64.93
|
292.87
|
974.58
|
1,513.45
|
|
Increase/Decrease in Stocks
|
1.51
|
19.05
|
-8.91
|
-1.62
|
-13.91
|
|
Employees Cost
|
25.5
|
19.72
|
20.38
|
22.36
|
20.74
|
|
Depreciation
|
3
|
2.06
|
1.83
|
1.84
|
1.9
|
|
Other Expenses
|
10.31
|
7.59
|
8.5
|
7.18
|
230.78
|
|
P/L Before Other Inc., Int., Excpt. Items & Tax
|
-4.81
|
-16.56
|
-16.21
|
7.18
|
93.98
|
|
Other Income
|
20.42
|
21.86
|
21.6
|
16.09
|
19.63
|
|
P/L Before Int., Excpt. Items & Tax
|
15.61
|
5.3
|
5.38
|
23.26
|
113.6
|
|
Interest
|
--
|
0
|
--
|
0
|
0.4
|
|
P/L Before Tax
|
15.61
|
7.08
|
5.38
|
23.26
|
113.2
|
|
Tax
|
9.16
|
3.37
|
3.44
|
10.14
|
37.24
|
|
Net P/L After M.I & Associates
|
6.45
|
3.71
|
1.94
|
13.13
|
75.96
|
|
Equity Share Capital
|
105.88
|
105.88
|
105.88
|
105.88
|
105.88
|
|
Basic EPS
|
0.06
|
0.04
|
0.02
|
0.12
|
0.72
|
|
Diluted EPS
|
0.06
|
0.04
|
0.02
|
0.12
|
0.72
|
|
MP
|
58
|
||||
|
PE
|
|||||
|
VOLUME
|
4300000
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||||
|
52 Wk Low/High 22.35 73.30
|
|||||
|
FV
|
1
|
||||
Performance Update 04
Update on Regulatory
Compliances 13
Update on Awards &
Recognition16
Q4 & FY2018-19 Results
Update 18
Company Overview21
Directors & Leadership
Team35
Annexures40
Kendra Evolution41
Branding & Marketing
Campaign
PERFPRMANCE REVIEW
·
No.Of Next Gen Outlets Operational : 3504
·
Monthly Throughput On Vakrangee Platform :Rs.9.5 Bln
·
Annual Run Rate Throughput : Us$ 1.6 Bln
·
Transaction Value-Basis Current No Of Next Gen Outlets
·
Monthly No. Of Transactions : 4 Mln
Our Aim to become India’s Largest Rural Consumption Platform
TARGET ESTIMATES PLANNED ON MATURE BASIS
· No of NextGenOutlets -On Maturity 3,504
· Avg. Monthly Throughput on Maturity –Transaction
Value Estimate (in Rs.) : ~Rs. 25-30Bn
· Annual Run Rate Throughput –Transaction Value
Estimate -basis Current No of Outlets on Maturity ~US$ 4-5 BN
· Monthly No of Transactions on NextGen Vakrangee
Platform ~10-12M
Maturity is considered as average ageing of 12
months for the outlets
NEXTGEN OUTLETS PERFORMANCE SCORE CARD :
NextGenoutlets are currently only 3 months old. The
below is the Average Data for the month of April 2019.
As the stores mature, we expect the financials to
significantly improve.
Note -* -Banking include Deposits / withdrawals
· Avg. No Of
Daily Transactions – ATM - ~40-50 Transactions Per Day Per ATM~
· Avg. Total
Banking* & ATM Throughput -Transaction Value : Rs.
7-8 Billionper Month(Cumulative For All Nextgenoutlets)~
· Avg. No Of
Bill Payments / Ticket Bookings / Courier / Money Transfer Txn : Value
40-50 Transactions Per Month Per Outlet
· Avg. GMV
Throughput –Transaction ~Rs. 250-350mn Per Month(Cumulative For All
Nextgenoutlets)
Nextgen
Outlets – Performance Scorecard - Nextgen Outlets –Service Activation Status
· Banking *61%
· ATM 99%
· Insurance *74%
· Financial Services
· Money Transfer 100%
· Home Loan ^ 42%
Assisted E-Commerce
· Online Shopping (Amazon / Netmeds/ Gold Jewellery) 100%
· Bus Ticket Booking, Mobile & DTH recharge 100%
E-Governance
· BBPS 100%
· IRCTC 100%
· Logistics 24%
Planned Target is to have
all services in all outlet by June,2019.
Note : * Franchisee needs to clear the required certification, In some
cases Bank is yet to be allocated
^ Based on Partner serviceability
Case Studies : Nextgen Top Performers
Amazon Services–Case study:-
· •FranchiseeLocation–TierVI
· •MonthlyFranchiseeCommissionIncome–INR.31,580
· •GrossSaleValue–INR.9,88,528
· •MonthlyNumberoforders–123
·
Banking
Services–Case study
·
•Franchisee Location – Tier iv
·
MonthlyFranchiseeCommissionIncome–INR.66,454
·
•BankingTransactionValue–INR.26.1mn
·
•NumberofBankAccountsopened–6,000
Insurance services – case
study :-
·
•FranchiseeLocation–TierV
·
•Monthly Franchisee Commission Income–INR.58,550
·
•Monthly Number of Policies Sold–101
ATM SERVICES - Case study
· •Franchisee Location–TierIV
· •Monthly Franchisee Commission Income–INR.85,824
· •Number of Financial Transactions–6,630
· •Number of Non-Financial Transactions–6,508
CASE STUDIES : NEXTGEN TOP PERFORMERS
• BBPS Services – Case study
·
Franchisee Location
– Tier V
·
Monthly Franchisee
Commission Income–
·
INR. 17,190
·
Number of Bill
payments – 3,397
Netmeds Services – Case study
•
Franchisee Location
– Tier III
·
Monthly Franchisee
Commission Income– INR. 22,669
•
Gross Sale Value – INR.
1,28,240
•
Monthly Number of
orders – 86
•
Domestic
Money Transfer Services
–
· Franchisee
Location – Tier I
•
Monthly Franchisee Commission Income– INR.
20,383
•
Total Remittance Value – INR 3.5 mn
• No.
of Transaction - 927
Home Loan services - Case study
•
Franchisee Location
– Tier IV
·
Monthly Franchisee
Commission Income– INR. 9,295
•
Number of Logins –
13
Guidance on opening of NextGen counters
March 19 – 3504
June 19 - 8500
Sep 19 - 15000
Dec 19 - 20000
Mar 20 - 25000
March 21 - 45000
Mar 22- 75000
Mar 25 - 300000
Planned Target is to have
last Mile presence across All Postal codes covering each & every Gram
Panchayat in the country.
Man Power count
Mar 19 – 1863
May 19 – 1974
Mar 20 – 3500 to 4000
Hiring and further
strengthening the field team to enhance the ground level reach and availability.
• Attractive Incentive
schemes launched for
employees based on Targets
–
• Incentive scheme to
achieve the set target for Appointment of Franchisees
• Incentive scheme to
achieve the set target of Revenue and Gross Margins %
• Clear Focus on
monitoring and improving the
employee productivity
• Daily & weekly
performance review dashboards
• App based activity
monitoring
UPDATE ON MCA INSPECTION
• The Company has received
an update on the Inspection report from Ministry of Corporate Affairs (dated
2nd May, 2019) which clearly states that pursuant to Inspection of Books of
Accounts of the company for the last three years there are no irregularities
and there is no further action pending pertaining to it with respect to the
below mentioned matters.
• The Ministry of
Corporate Affairs finds no irregularities and there is no further action
pending
pertaining to Vakrangee
with respect to the above mentioned matters.
• The MCA has however
asked for certain routine explanatory information regarding the Amount collected
from the Franchisee’s and with regard to disclosure requirement of Other Assets
& Liabilities.
CLEAN CHIT BY SEBI
CLEAN CHIT BY EOW
CLEAN CHIT BY MCA
Particulars (Rs. Mn.) Q4
FY18-19 Q3 FY18-19 QoQ % FY2018-19
Total Income 1,218.8 1,186.6 2.7
15,882.0
Total Expenses 1,062.7
1,133.5 (6.2) 15386.3
EBIDTA 186.2 73.7 152.6 583.0
PBT 156.1 70.8 120.5 513.4
Tax Expenses 91.6 33.7
171.8 261.1
Profit after Tax (PAT)
64.5 37.1 73.9 252.3
Earnings per Share (EPS
Basic) 0.06 0.04 50.0 0.2
KEY P&L ITEMS
Particulars (Rs. Mn.)
FY2018-19 FY2017-18
Net Worth 26,022.0
25,924.1
Share Capital 1,058.8
1,058.8
Other Equity 24,963.2
24,865.3
Total Debt 0.0 0.0
Long Term Debt 0.0 0.0
Short Term Debt 0.0 0.0
Other Non-Current
Liabilities 57.0 75.0
Total Sources of Funds
26,079.0 25,999.1
Key Balance Sheet Items
Fiscal Year (FY) is 12
months ending March
Particulars (Rs. Mn.)
FY2018-19 FY2017-18
Fixed Assets 1,562.1 929.8
Other Non-Current Assets
257.3 576.3
Inventory 41.1 171.5
Trade Receivables 13,196.2
13,078.9
Cash & Cash
Equivalents 11,441.7 14,744.5
Other Current Assets 678.9
425.4
Less: Trade Payables 338.8
3,401.9
Less: Other Current
Liabilities 759.5 525.4
Net Current Assets
24,259.6 24,493.0
Total Application of Funds
26,079.0 25,999.1
FINANCIAL GUIDANCE :
Revenue as well as
Profitability has been materially impacted as these outlets undergo up-gradation
process.
• Financials to start
improving from Current quarter onwards as more and more Next Gen outlets become
operational.
• Further, Financials
shall improve as the stores get more and more mature.
• MARCH 19 ONWARDS
Overall 3,504 NextGen
outlets operational and target is to reach 25,000 outlets by Mar-20.
• Robust Balance sheet
maintained with Debt free status and entire Capex funded through internal accruals.
Mar-18 till Dec-2018 Mar-19 onwards :
Financials have seen the
maximum impact of the Up-gradation exercise.
OUR STRENGTHS
1.
TIE UP WITH KEY
PARTNERS AND ACCESS TO KEY LICENCES
2.
TECHNOLOGY INTEGRATION
EXPERTISE
3.
PRESENCE TILL BLOCK
LEVEL
4.
SIZE AND SCALE WITH
STRONG FRANCHISEE MODEL
STORE ECONOMICS OF A
NEXTZEN KENDRA
NextGen Outlet Estimated Revenue
Per Store : Avg. Revenue per Month
Rs. 0.1 mn *
NextGen Outlet Estimated Commission
Sharing Ratio : Ranging from 65:35 to
80:20 based on
Service Type
NextGen Outlet Estimated Profit
Margins % : Vakrangee Margins : Operational Gross Level – 18-20% ; Sustainable
EBIDTA Level – 15-16%**
NextGen Outlet Estimated Capex
for Franchisee &
Breakeven : Total Capital
Employed for Franchisee – Rs. 1.0 – 1.5 mn ; Breakeven Period In Months – 18-24
Note: * - Estimate Based
on a mature store. Maturity is
considered as more than 12 months old outlet.
** - EBIDTA Margins
calculated on basis of reaching an Operating leverage of minimum 10,000
operational stores.
LEADERSHIP TEAM
STRONG MANAGEMENT TEAM IN
PLACE TO DRIVE NEXT PHASE OF GROWTH ACROSS ALL BUSINESSES
DINESH NANDWANA
Founder Promoter &
Executive Chairman
DR NISHIKANT HAYATNAGARKAR
Director – R&D
ANIL KHANNA
Managing Director &
Group CEO
• Mr. Anil Khanna has
joined Vakrangee as Managing Director & Group CEO w.e.f. 25th January 2019.
Prior to Vakrangee he
has been at the position
of Managing Director of Blue Dart Express Limited with effect from 21st February
2007.
