Protean e-gov Q1’FY25 concall highlights
PAN Card Issuance
- Gained market share from 50% to 54% in Q1FY25
- Online issuance is better from a margin perspective better as paperwork & storage not involved and a lot of traction in online issuance seen as the split in online & offline split is 50-50 – positive for ebitda margin
- Fresh PAN issuance is: ~70%; remaining re-issue or re-print. Fresh issuance charge is higher, any change request is same too only re-print is a bit lower.
- Charges are per application fee + TDS returns are on no. of records
Pension services
- Huge headroom as pension penetration v.low (6%) vs. USA which has ~80% and even if we compare in India itself, Jan dhan A/cs opened are ~50Cr+ and Pension a/cs opened are only 7Cr+
- Pricing structure: A/c opening charges, AMC charges & transaction charges (no transaction charges for APY)
Identity Services
- DD growth in identity services business due to increase in digital payments & lending
- E-sign pro: all about enabling paperless journey, ability to sign docs digitally
- Will play a role in opening of any new account & any loans/contract signing
- Entire ecosystem of digital lending & onboarding is the opportunity here
- E-sign pro gets built into the application of the customer (ex: if it’s a bank which is the customer of protean then E-sign pro will be embedded into that bank’s application)
- E-stamping – a very prospective add-on to e-sign due to the require for stamping in loan agreements documents which can be now done digitally.
- Largely going to be transactional model of revenues (per transaction charge)
- PROTEAN X: enabling individuals and organizations to create, verify and store credentials using blockchain-based technology
ODE’s/DPIs (Open Digital Ecosystems/Digital Public Infra)
ONDC
- Currently providing gateway & registry services
- Cost of infra incurred by Protean is reimbursed by ONDC, over period of time there will be a transaction basis but as of now ONDC like to believe they don’t want to have network charges although there will be an inflection point will be decided by ONDC itself
- Assuming around 8-10bps as a transactional charge (still WIP – projected assumption based on other platforms)
- Onboarded a few customers to provide buyer/seller technology app for them (SaaS model in play)
ONEST (Education & Skilling)
- Protean was already invested in Ed-tech through their earlier avenue like Vidyalakshmi which helped in providing education loans & scholarships.
- So already had presence and now transitioning the whole education part into a DPI and like ONDC revenues are from reimbursement
Agristack
- Work done to build data sharing protocols amongst governments & different associations
- In the process to get 13 state govts onboarded to enable data exchange
- Again, reimbursed for work; looking forward to multiple use cases & revenues
Further govt policies and support can greatly influence the Open platforms
Others
- Cloud & Infosec: huge demand, moving into new sectors; brings a lot of value to cos.
- Made in India cloud, govt is quite interested in this and moreover it’s a green cloud (powered by sustainable energy)
- International market:
- Focus largely driven by taking India’s DPI approach & replicating product capability build in India to other countries
- Actively engaging w/12 countries; 18 active opportunities; Shortlisted into 2 projects
- All projects recd thru Govt RFPs
- Decline seen in new business segment YoY: due to one-off carry over in last yr
- Adj. EBITDA bridge: largely the difference is ECL loss & Other income is also included in reported nos.
- Other exp is largely legal fees & some are onetime expenses
- Actively seeking inorganic opportunities for support in go-to market strategy and tech-based firm
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