Q3FY24 EBITDA at Rs10.31 Cr, a growth of 15.65%; EBITDA Margins at 14.4%
FinTech BizNews Service
Mumbai, February 12, 2024: BLS E-Services Ltd, a technology-enabled digital service provider, providing E-Governance Services, Business Correspondent (BC) Services, and Assisted E-services to the citizens, today announced its unaudited consolidatedfinancial results for the quarter and nine-month period ended 31st December, 2023.
Management Discussion & Analysis of Results
· BLS E-Services reported its maiden quarterly financial results post the listing of its shares on the Indian stock exchanges viz NSE & BSE.
· For the quarter that ended on December 31, 2023, the company’s consolidated revenue stood at INR 71.65 Cr, compared to INR 69.07 Crores in the corresponding previous quarter. Operating EBITDA witnessed a growth of 15.7% to INR 10.31 Crores
· The company’s operating EBITDA margins stood at 14.4%, and expanded by 150 bps. The expansion is primarily driven by an improved business mix
· Given the asset-light nature of the business, the company continues to generate significant returns for its shareholders
· Management continues to focus on Inorganic growth opportunities across various segments of Rural Banking Outlets, E-Governance and E-Services businesses and expect consolidation in these business segments
· BLS endeavors to bid for several contracts & tenders for e-governance services and would be keen to engage with various private and public sector banks for providing business correspondent services to the citizens of India.
Growth Drivers:
· Focus on Organic growth
i. Focus on volume-led growth across the three verticals of Rural Banking Outlets, E-
Governance & Assisted E-services
ii. Follow an aggressive strategy to win new government tenders for E-governance business
iii. New tie-ups with financial institutions viz Banks, Insurance companies, NBFC, etc
· Invest in technology to further build robust systems and processes
i. Strengthen our technology infrastructure to develop new capabilities and consolidate our existing platforms
ii. Invest in technologies, infrastructure & manpower to tap exciting possibilities related to digitalization, last-mile penetration & enhanced service experience
· Actively scout for strategic inorganic opportunities, which would provide synergy to the existing businesses, with an objective to maximize shareholder value
Consolidated (Rs Cr) | Q3 FY24 | Q3 FY23 | % Change | 9M FY24 | 9M FY23 | % Change |
Operational Revenue | 71.65 | 69.07 | 3.74% | 227.83 | 170.35 | 33.7% |
EBITDA | 10.31 | 8.92 | 15.65% | 30.94 | 20.88 | 48.2% |
EBITDA % | 14.39% | 12.91% |
| 13.58% | 12.26% |
|
PBT (before exceptional item) | 10.51 | 8.27 | 27.1% | 31.29 | 18.01 | 73.7% |
PAT | 7.95 | -12.06 |
| 22.63 | -4.87 |
|
9MFY24 versus 9MFY23:
● Operational Revenue stood at ₹ 227.83 crores in 9M FY24, a growth of 33.74% from ₹
170.35 crores in 9M FY23
● EBITDA stood at ₹ 30.94 crores in 9M FY24, up 48.17% from ₹ 20.88 crores in 9M FY23. EBITDA Margins for 9MFY24 expanded to 13.58% compared to 12.26% in 9MFY23
● PBT (excluding exceptional item) stood at ₹ 31.29 crores in 9MFY24 compared to ₹ 18.07 crores in 9MFY23, a growth of 73.7%.
● Profit after Tax (PAT) for the period was ₹ 22.63 crores, compared to ₹ -4.87 crores in 9M FY23
Q3FY24 versus Q3FY23:
● Operational Revenue stood at ₹ 71.65 crores in Q3 FY24, compared to ₹ 69.07 crores in Q3FY23. The growth is driven by growth in the business correspondence segment.
● The company reported EBITDA at ₹ 10.31 crores in Q3FY24, witnessing a growth of 15.65% YoY. EBITDA Margins expanded to 14.39% compared to 12.91% in Q3FY23
● PBT (excluding exceptional item) stood at ₹ 10.51 crores in Q3 FY24 compared to ₹ 8.27 crores in Q3 FY23, witnessing a growth of 27.1%
● PAT for the quarter was at ₹ 7.95 crores compared to ₹ -12.06 crores in the same period of last financial year
Recent Major Updates:
Ø BLS E-Services received a substantial order from the State Health Agency – Ayushman Bharat-Pradhanmantri Jan Arogya Yojana, Uttar Pradesh. This strategic collaboration involves processing Ayushman Cards on the National Health Authority (NHA) IT Platform.
Ø The company was awarded a significant contract from the Unique Identification Authority of India (UIDAI) to conduct a comprehensive data quality check for Aadhaar information. The project, spanning over 3 years and extendable by another 2 years.
Commenting on the company’s performance, Mr. Shikhar Aggarwal, Chairman, BLS E- Services Ltd., said, We are thrilled to announce the successful listing of BLS E-Services Ltd's shares on the prestigious NSE & BSE through an initial public offering, marking a significant milestone in our journey towards technological and service excellence in the E-Governance, Business Correspondent, and Assisted E-services sectors. This IPO has successfully raised INR 310 Crores, earmarked for both organic and inorganic growth opportunities, highlighting the confidence of the investors in our vision and our robust growth strategy. We have been proactive in bidding for significant contracts and tenders, particularly in e- governance services, and are actively engaging with various financial institutions to expand our business correspondent services. These efforts are complemented by our investment in technology and infrastructure, aiming to further enhance our service offerings and operational capabilities. Our focus remains steadfast on capturing volume-led growth across our business verticals, securing new government tenders, and forging new partnerships with financial institutions. Additionally, we are continuously scouting for strategic inorganic opportunities that align with our business model and promise to deliver enhanced shareholder value. With these developments, we reiterate our commitment to pioneering in the digital services space, aiming for accelerated growth and value creation. We are optimistic about the future, as we continue to explore new avenues for expansion and strive to achieve excellence in every aspect of our operations.”
