BLS International| कैसे रहेंगे नतीजे, क्या है कंपनी का Growth Outlook| Shikhar Aggarwal| GoodReturns
BLS International: Demand Trends, Contract Renewal Plans, Growth outlook. Watch Shikhar Aggarwal, Joint Managing Director, BLS International Services Ltd.
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~PR.147~ED.148~GR.124~
#BLSinternational #Blsinternationalshareprice #ShareMarketToday #StockMarket
#BusinessInsights #BusinessGoals #BusinessGrowth #BusinesssIdeas #BLSeServices #BLSInternational #VisaProcessing #iDATA
~PR.147~ED.148~GR.124~
Transcript
00:00We make bespoke solutions for every government.
00:02Last year, we have grown by 60% EBITDA level.
00:05We are a listed company, so we have to declare whatever contracts we win in the market.
00:09We have a 21% EBITDA margin, which I think should increase this year.
00:13We have established our own entity in Saudi Arabia and started our own business.
00:17We operate globally in more than 70 countries.
00:21Hi, this is Bhavna, and you're watching GoodReturns.
00:24BLS International Services was established in 2005.
00:28It provides tech-enabled services to governments and diplomats around the world.
00:33It also provides services like Visa, Passport, and Citizenship.
00:38The company has been successful in more than 66 countries.
00:42In addition, more than 50,000 company application centers are present all over the world.
00:49Business Today magazine has ranked BLS International Services as one of the most valuable companies in India.
00:56Forbes Asia has given it a place in Best Under a Billion Company and Fortune India's Next 500 Companies.
01:02The company is the second largest international visa and counselor service provider.
01:07It works with more than 40 client governments, including diplomatic missions, ambassadors, and embassy ambassadors.
01:14If we talk about the share performance, the company's share has increased by 4% in 6 months.
01:20In a particular year, we have seen a 16% jump.
01:24If we talk about 5 years, the company's share has given a strong profit of more than 1900%.
01:31Another company of BLS International is BLS E-Services, which started in 2016.
01:38This year, the company's IPO came.
01:40The company is a listed company and a digital service provider.
01:43Its job is to provide services such as business correspondence, assisted e-services, and e-governance to banks.
01:50What is the company? What does the company do?
01:53What is the impact of the company on you and our life?
01:56What is the future growth of the company?
01:58What is the financial performance of the company?
02:01We will discuss everything.
02:03The company's joint MD is Shikhar Agarwal and he is the chairman of BLS E-Services.
02:10He will join us and talk to us in detail.
02:13Shikhar Agarwal is the joint MD of both the companies and the chairman of BLS E-Services.
02:27Hi Shikhar, how are you? Welcome to GoodReturns.
02:29Thank you Bhavna for inviting me.
02:31Shikhar, first of all, I would like to ask you about both the companies.
02:35What do both the companies do?
02:37What is the impact of both the companies on the lives of ordinary people?
02:41Absolutely.
02:42Our parent company, BLS International, is a listed company in the stock exchange.
02:48It is also listed in the NSC National Stock Exchange and Bombay Stock Exchange.
02:52We were listed in 2016 by BLS International.
02:56This company is the only Indian company that is delivering global services in visa outsourcing and counselor services at a global level.
03:06We are providing services in more than 70 countries and we are working for more than 45 client governments.
03:13What do we do?
03:14For example, people from India travel abroad and they need visas from different European governments.
03:20If we talk about India alone, we have Spain, Slovakia and the Schengen government who have outsourced visas to us.
03:30We have 15-16 offices in pan-India where people come, submit their biometrics and applications and we transfer them to the embassy.
03:38Apart from that, we work for Thailand, Morocco, South Korea and some other governments in India.
03:44At a global level, we work with a lot of different governments.
03:48We work for the Indian government, Italian, Hungary, Germany.
03:52For different governments, we work at a global level for visa outsourcing.
03:56We also outsource the counselor services of the citizens of many governments like India and Philippines.
04:03Amazing!
04:05So, what does the company do?
04:08When BLS International started in 2005 and you started BLS e-Services in 2016,
04:15I am sure you have seen a lot of changes in this industry and sector.
04:20What has been the contribution of BLS International in all these changes?
04:24Absolutely! I feel that BLS International has made a very good contribution globally.
04:29To improve services and to deliver citizenship, we have supported the governments.
04:34Now, as you can see, tourism is increasing and people are travelling a lot all over the world.
04:39If we look at the numbers since we started the company, it has increased by at least 5 times the number of tourists who travel worldwide.
04:47So, we are the only Indian company.
04:49We have broken the monopoly of competitors in this industry.
04:53We have given an alternative to people so that they can apply for a visa through us.
04:58So, I think we have seen a lot of changes in the world, in different territories.
05:02In some markets, where the numbers were less earlier, people started travelling more outbound.
05:06So, we have seen a lot of changes over the years.
05:09After the establishment of BLS International, what are the key factors behind the remarkable growth of the company?
05:17The remarkable growth of BLS International was in 2005-2006 when we established the company.
05:24At that time, we were working for many foreign governments in India.
05:27After that, we started working for the Indian government in 20 countries abroad.
05:32Gradually, we started working for other foreign governments.
05:35I think the biggest input in this was the technology.
05:39The technology that we are using is the latest in class.
05:42We are providing solutions to the governments with that technology.
05:45Problems are being solved.
05:46Customers are very happy.
05:48Let's talk about the appointment booking module.
05:50The data that we capture, the biometric that we take, the error quality rate.
05:55If we talk about all these things, I think technology plays a very big role.
05:59Flexibility, agility.
06:01Our decision making is very fast.
06:03It's not like we win a contract and stick to it.
06:06We listen to the governments.
06:08Every month, there is an operational review with all the governments.
06:11Because of their new requirements, we change our delivery.
06:14We increase the number of people.
06:15We establish new centers.
06:16We also make changes in technology.
06:18I think this is also a big factor.
06:20Apart from that, if we look at our global reach in the world,
06:24we work in more than 70 countries.
06:26Right now, we have made a big acquisition.
06:29There is a company called iData.
06:32We have purchased it.
06:33With that, our reach and presence has increased.
06:36I would like to tell you more about iData.
06:40With that, our reach has increased a lot.
06:42I think these are the factors because of which the governments also need alternatives.
06:47Everyone wants more companies to come in this field.
06:50Government should provide more services.
06:52I think because of these reasons,
06:54our employees, staff, everyone who works with BLS,
06:58I think they work with a certain level of commitment.
07:01Absolutely.
07:02If we look globally, it is the second largest company.
07:04If I am not wrong.
07:05Absolutely.
07:06I am sure if you are the second largest,
07:08then you will be the third and first.
07:12How is BLS International different from its competitors?
07:17How do you take different initiatives to create a competitive edge?
07:25First of all, we always consider ourselves to be underdogs.
07:28We feel that we have taken a big step forward.
07:31We want to grow a lot.
07:32We can do it.
07:33We always consider ourselves to be a small player in our company.
07:38We think that we have to work in the same way.
07:40This is our edge.
07:42We are hungry for growth.
07:44We feel that the opportunity size is very big.
07:46As I told you about flexibility and technology,
07:50we definitely give value for money to the governments and customers.
07:53Our delivery network has become very big.
07:56Our turnaround time is faster.
07:58People come to our offices.
08:01We give a bespoke model to the governments.
08:03We are not giving the experience of a combined shopping mall to the governments.
08:09Many governments are working in the same offices.
08:11We make a bespoke solution for each government.
08:14We make different alignments for them.
08:17We provide different technologies.
08:19We provide different training to the people.
08:21We provide different spaces so that visa shopping does not happen.
08:23The government can go to the country the customers want to go to.
08:28It will be beneficial for the governments.
08:30Their tourism will increase.
08:31I think these are some of the factors.
08:33We have delivered services over the years.
08:36The number of governments we have worked with has increased.
08:39They have given us contracts again.
08:41In the last 1.5 years, we have won 12-15 new contracts.
08:46We have re-tendered our existing contracts.
08:48We have won new contracts.
08:50These are all testimonials.
08:52The government is working on the facts.
08:56You are right.
08:58We consider ourselves to be a small player.
09:01We want to see a lot of opportunities.
09:04We want to move forward.
09:06We want to continue our hunger.
09:08What are the strategic decisions and initiatives that you believe have contributed to the expansion of the company?
09:15Our strategy was to spend money on our people.
09:21We introduced ESOPs for our staff.
09:24We trained everyone.
09:26We invested in the quality of application centers and technology.
09:28We invested in customer relationships.
09:30We have done a lot of things.
09:32We have done a lot of things.
09:34This is why we have grown.
09:36Inorganically, we are open to acquisitions.
09:40We started a new entity in 2016-17.
09:43We listed BLS E-Services this year.
09:46We acquired 2-3 companies.
09:49We are open to growing inorganically.
09:52What are the projections for the financial performance of BLS International in the upcoming quarters and years?
10:00We have done a good job operationally.
10:04We have been flat in terms of revenue.
10:06What are your projections for further growth?
10:11How do you see its growth?
10:13In the last few years, we have grown by 60% EBITDA compared to the year before.
10:19We have grown by around 350 crores EBITDA.
10:22We expect good growth this year as well.
10:24We expect good growth in the next few years.
10:27Our EBITDA margins have increased by 21%.
10:32I think it should increase further this year.
10:34There has been a lot of growth in revenue.
10:36After COVID-19, everything has opened up in different countries.
10:40There is good growth in revenue.
10:42I think there will be good growth in the next few years.
10:45We have done acquisitions.
10:46Their revenue will also be added.
10:48We have got some new contracts that we are deploying.
10:51We have deployed them.
10:52I think we will be able to maintain and surpass the growth momentum in the coming years.
10:57We will be able to take the company to a different horizon.
10:59You have mentioned that you have won 12-15 contracts in the last year.
11:06Can you tell us about those collaborations, partnerships and contracts?
11:11What are the contracts that have been renewed?
11:13Can you tell us about some of them?
11:15Are there any government contracts that you are discussing with them?
11:19Are you going to add them?
11:21Of course.
11:22We are a listed company.
11:24We have to declare all the contracts that we win in the market.
11:27Exactly.
11:28We are in the public domain.
11:29We have started work for the Hungarian government in 6-7 countries.
11:35We have started work for the Italian government in many countries.
11:38We have started work for the Portuguese government in 2 countries.
11:41We have started work for the German government in USA and Mexico.
11:45We have won a global contract for the Slovakian government.
11:49We have won a lot of new contracts.
11:52The existing contracts that we were running in 2016-17 have been re-tended.
11:58We have got a global tender for the Spanish government.
12:01Its scope has increased.
12:03We have opened offices in new countries.
12:05New categories of services have been outsourced.
12:07We have started with the Indian government.
12:11The biggest thing about our USP growth is that the Indian government has supported us a lot.
12:16It has supported Indian companies to grow globally.
12:19We were doing a contract with the Indian embassy in Canada.
12:23We have re-tended that contract.
12:25We have re-tended a lot of our existing contracts.
12:28We have won a lot of new contracts.
12:30Apart from that, we have got a lot of new contracts for the acquisition that we have done.
12:35You were talking about iData.
12:37Can you elaborate on that?
12:39What was that partnership?
12:41How much was that partnership worth?
12:43We always think about the best return of our shareholders.
12:49How can we grow organically and inorganically?
12:52We are bidding in new tenders organically.
12:55We are trying to increase the revenue profitability in existing contracts.
12:59We are also looking at how we can effectively utilize the cash that is being generated inorganically.
13:06We have identified a company called iData.
13:09It is a company based in Turkey.
13:11We used to own this company in the Italian zone.
13:14Now, we own this company in the Indian zone.
13:17We have done 100% acquisition of this company.
13:20It is worth Rs. 720 crores.
13:22Last year, this company had an EBITDA of around Rs. 800 crores.
13:25This company had an EBITDA of Rs. 135 crores.
13:28We think that it will grow well this year.
13:30This is a very big acquisition.
13:32It was a regional player.
13:34This company is working in 15 countries.
13:36For 3 governments, Germany, Italy, and the Czech Republic.
13:39People from those countries, Germany, Italy, and the Czech Republic,
13:42from Turkey, Kazakhstan, and many other countries,
13:46were working in this company.
13:48We have acquired this company.
13:51We will get good revenue profitability from this company.
13:54Our existing offices in that country will be combined.
13:58The economy will be scaled up.
13:59The cost will be reduced.
14:00The margin of both the companies will increase.
14:02We will get more reach in new territories.
14:04We will get more reach from new client governments.
14:06This company had an EBITDA of Rs. 300 crores.
14:10This will definitely be added to our books.
14:12This acquisition is on a good valuation.
14:14We have got it on a multiple of 5-6.
14:16We will be able to recover our cash.
14:20We will try to recover it as soon as possible.
14:22We think that this is a very good strategic acquisition.
14:24We have got entry in new client governments.
14:26We would like to utilize their expertise globally in our system.
14:30This company was earning a good profit margin.
14:32It was earning more EBITDA than us.
14:34How can we increase our EBITDA?
14:36Your focus has been on reducing partner dependency.
14:40I would like to know what you mean by that.
14:43How will it be beneficial for your company?
14:46How will it impact the company's growth?
14:48Our company operates in more than 70 countries globally.
14:53There are different dynamics in different countries.
14:56When you have to run operations.
14:57In many countries, there are local laws.
14:59You will have to take a local partner.
15:01You will have to give majority shareholding.
15:03You can work like that.
15:05But these laws change timely.
15:07We have established our own entity in Saudi Arabia.
15:11We have started our own business.
15:13Because of operational reasons,
15:16we started working with local partners 6 years ago.
15:20Now our company is growing.
15:22We have started taking over those operations.
15:25We have opened our 100% entity and started operating.
15:28Because of this, our share of profitability will increase.
15:33Our margins will increase.
15:35Our control increases in those geographies.
15:38We will be able to grow more.
15:40We have taken over some partner countries recently.
15:44Our target is to operate everything ourselves.
15:49In this way, partner dependency will be reduced.
15:53Let's talk about BLS e-Services.
15:56Because of your recent acquisitions,
15:59this company has come in profit.
16:02To make it profitable,
16:04what initiatives are you going to take?
16:07Are you going to do any collaboration?
16:09What is your outlook on growth for BLS e-Services?
16:12First of all, BLS e-Services has always been in profit.
16:15In 2016, we started working with a citizen service.
16:20After that, we acquired a company called Starfin.
16:23It is in the banking correspondent business.
16:25After that, we felt that there is a lot of growth in the sector.
16:28Because it aligns with BLS International.
16:31Because in this, we are serving the government.