Saturday, May 11, 2019

VAKRANGEE CORP PRESENTATION DATED MAY 10,2019


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




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.

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