BLS International Services (BLS) Q4 16/17 earnings summary

Executive summary

• FY2016-17 delivered strong growth across domestic and international operations, supported by new consular contracts and the Punjab citizen-services rollout.

• Operations reached 58 countries and served 29 client governments; the network processed over 20 million applications to date.

Financial highlights

• Consolidated total revenue was ₹6,372.65m, up 26.07% YoY; revenue from operations was ₹6,349.59m versus ₹5,049.58m.

• Consolidated EBITDA was ₹846.84m, up 127.43% YoY; EBITDA margin reached 13.3%, up 592 bps, largely on gross-margin expansion.

• Consolidated PAT was ₹499.58m, up 61.71% YoY; basic and diluted EPS was ₹48.76 versus ₹30.15.

• Gross profit was ₹1,695m and gross margin 26.6%, versus ₹922m and 18.2% in FY2015-16.

• Standalone total revenue rose 47.61% to ₹258.37m; EBITDA grew 50.77% to ₹62.69m and PAT increased 159.10% to ₹31.30m.

Outlook and guidance

• FY2017-18 estimated application processing volume is ~18m; foreign-mission tenders are in the pipeline, with prequalification to bid for several global tenders.

• Management expected positive business momentum over the next few years, citing traveler growth, government outsourcing, untapped visa services and geographic diversification.

• Citizen-services opportunities may expand as Indian states consider replicating Punjab’s e-governance model and overseas markets adopt digital public services.