BLS Q2 FY23 Result Update:
- Annualized ROE at 28.4%. They wanted to reach the target of 30%. Margin improvements are there due to better asset utilizations and tighter control of operations. Cash generation has been the focus. Have increased touch points for digital services from 80000 to 90000 pan india.
- Has seen high recovery in visa & consular business.
- Zero Mass pvt. Ltd. contributed 42 crore to the top line.
- Invest in technology to further build robust systems and processes, also looking for inorganic opportunities, tapping new geographies and countries.
- Opening up of China will increase volumes. Russia is still an opportunity. 30-35% of the applications come from Russia and China.
- Margins will start to expand from Q4 onwards. This quarter it was subdued was due to investments made in digital businesses.
- Income Tax Rate for FY23 & FY24 should be around 12-15%.
- Same revenue mix is expected for visa-digital services (80-20).
- On a top line basis, they see more opportunities in digital services but margins are much higher of visa business.
- Guidance: Still not operating as per 2019 levels. There is still opportunity for growth in FY24. Only operating at 70-75% of pre-covid application rate. 15-20% growth in revenue expected in FY24.
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