BLS International Services Limited — Q3 FY26

BLS International Services Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=tiSlSjFFyz0 Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to BLS International Service Limited Q3 NFI26 earning conference call hosted by Ambit Capital Private Limited. 0:11 11 seconds As a reminder, all participant mind will bundle only mode and there will be an opportunity for you to ask questions after the presentation conclude. Should 0:20 20 seconds you need assistance during the conference call, please signal an operator by pressing star then zero on your task console. Please note that this 0:28 28 seconds conference is being recorded. I now end the conference over to Mr. Mois Chandani from Ambit Capital. Thank you and over to you sir. 0:39 39 seconds Uh good evening everyone. Uh on behalf of Ambit Capital, I would like to welcome you all to the Q3 FI26 earnings 0:46 46 seconds call for BLS International Services Limited. Joining us from the management today, we have uh Mr. Nikl Gupta, 0:54 54 seconds managing director, Mr. Shikar Agarwal joint managing director Mr. Amit Sadhakar chief financial officer Mr. 1:03 1 minute, 3 seconds Lokan Panda COO BLSE services limited [clears throat] and Mr. Gorov chug head investor relations I'll hand the 1:11 1 minute, 11 seconds management for the opportunity to host this learning call we now begin with opening remarks from Mr. Gorov Chug post which the forum will be open for an interactive question and answer session. 1:22 1 minute, 22 seconds Thank you and over to you Gorov. 1:26 1 minute, 26 seconds Thank you Morris. Uh good evening everyone. Uh thank you for taking time out to join this call today. Uh before we we begin I would like to point out 1:33 1 minute, 33 seconds that some statements made in today's discussion may be forward-looking in nature and a disclaimer to this effect has been included in our earnings 1:40 1 minute, 40 seconds presentation shared with you earlier. I would like to invite invite Mr. Shikar for his opening remarks post which Mr. 1:46 1 minute, 46 seconds Amitakar will discuss the financial performance of the company. We will then open the floor for an interactive Q&A session. Over to you Shikhar. 1:56 1 minute, 56 seconds Good evening everyone and thank you for joining us on BS International's Q3 and 9 month FI26 earnings calls. We trust 2:05 2 minutes, 5 seconds you had the opportunity to review the results press release and investor presentation. We are pleased to share that the company delivered a remarkable 2:12 2 minutes, 12 seconds performance in Q3 and 9 months FI26 for the first months 9 months of FI26 our consolidated revenue and back experience 2:21 2 minutes, 21 seconds a robust growth of 206% and 36% year on year reaching 2,180 crores and 537 2:30 2 minutes, 30 seconds crores respectively. This is nearly to the equivalent of the revenue of uh last year itself you know that we have achieved in 9 months. 2:39 2 minutes, 39 seconds This performance was driven by higher application volumes, multiple contract across major geographies, diversification of service portfolios 2:47 2 minutes, 47 seconds and consolidation of acquired business over the last few years. Q3 FY26 was also a strong quarter for the company as 2:55 2 minutes, 55 seconds revenue grew by 44% yearonear driven by healthy momentum across both 3:01 3 minutes, 1 second our businesses. A beta for Q3 uh FY26 increased 25% yearonear while PA recorded a growth of 33% yearonear 3:10 3 minutes, 10 seconds reflecting discipline execution and operational efficiencies. 3:14 3 minutes, 14 seconds Our visa and counselor service business continues to witness strong growth traction in Q3 FY26. While the revenue 3:22 3 minutes, 22 seconds grew 20% yearon year, our EITA increased by an impressive 28%. This growth highlights BLS strong capabilities and 3:30 3 minutes, 30 seconds positive impact of a successful transition from a business uh of a business model from a partner deck to self-pilot model. The number of 3:38 3 minutes, 38 seconds application process increased by 18% during Q3 rising to 10.7 lakh applications compared to 9.1 lakh in Q3 3:46 3 minutes, 46 seconds FI25. Net revenue per application also improved by 19% to 3,383 in FI26 compared to 2841 in QF25. 3:58 3 minutes, 58 seconds We continue to expand our global footprint by winning new contracts and renewing existing contracts during the quarter. The company secured a 5-year 4:06 4 minutes, 6 seconds global contract from Stoach Republic to establish and operate visa purchase centers in over 80 countries. The company was also awarded a three-year contract by the ministry of cell 4:15 4 minutes, 15 seconds government of India to establish Indian visa application center in China. 4:19 4 minutes, 19 seconds Further, the company also won lot of new contracts from the cyber press government uh in multiple countries like South Africa, China, Mongolia etc. In 4:28 4 minutes, 28 seconds addition to these new contracts, we renewed our mandate with MEA government of India to provide attention and a postal services across 17 major cities in India. 4:37 4 minutes, 37 seconds A digital business also continued to witness significant momentum. Revenue from digital service in QCFI26 more than 4:46 4 minutes, 46 seconds doubled to 287 cr from 137 cr in QCF25 registering a remarkable yearon-year 4:53 4 minutes, 53 seconds growth of 109%. This is primarily on account of growth in BC and loan distribution business along with 5:00 5 minutes increasing scale in assisted digital and citizen service. Also, the company's asset light and scalable operating model 5:09 5 minutes, 9 seconds remained a key enable of growth supported by a wide and growing network of 151,000 plus touch points and 45,800 5:17 5 minutes, 17 seconds plus service channel partners. The BC business is witnessing significant traction with GTV generated increasing 5:25 5 minutes, 25 seconds to 27,000 cr during the quarter as compared to 21,000 cr during Q3 FY25. In addition to this, the company also 5:33 5 minutes, 33 seconds achieved a significant milestone of having rupes 10,000 cr of aggregate bank balances in the bank account opened through BLSC services channel. The loan 5:41 5 minutes, 41 seconds lead generation business also witnessing strong traction as the company generated loan leads worth 9700 plus cr during the 5:49 5 minutes, 49 seconds quarter which has significantly increased from 2900 plus cr in the last quarter. Another key highlight for the digital business was winning a 100 crore 5:56 5 minutes, 56 seconds project from government of Bihar for establishment of the permanent enrollment centers for this mandate complements the recently received order 6:05 6 minutes, 5 seconds from UIDI to operate uh SAS uh with aggregate value of around 2,000 cr. We are continuing to strength our 6:13 6 minutes, 13 seconds technology across both our business while leveraging AI, advanced analytics, cloud platforms and automation to enhance 6:21 6 minutes, 21 seconds security, scalability and performance while delivering smart faster and more reliable digital solutions to customers and partners. Our continued investment 6:29 6 minutes, 29 seconds in technology is helping us deepen trust with governments while strengthening our customer first approach. While the company is consistently growing, it has 6:37 6 minutes, 37 seconds also followed a policy rewarding its shareholders through years by way of dividends. In line with this, the board has approved an interim dividend of 200% 6:44 6 minutes, 44 seconds of RA value that is rupees two per equity share in the meeting board meeting today. Before concluding, I would also like to speak on the recently 6:52 6 minutes, 52 seconds announced budget which offers an optimistic outlook for travel and within sector. The budget demonstrates a strategic commitment to revive 7:00 7 minutes revitalizing this future industry with increased funding [clears throat] allocated for infrastructure development as well as support for setting up five 7:07 7 minutes, 7 seconds reason medical tourism hub. The inflow of tourists into the country is expected to increase. Additionally, the change in 7:14 7 minutes, 14 seconds tax rates for overseas tourism packages along with risable disposable income are anticipated to lead in growing number of 7:21 7 minutes, 21 seconds overseas travelers into the future. For BLS, as one of the largest global visa outsourcing players, these initiatives are encouraging and are expected to have 7:29 7 minutes, 29 seconds a positive impact on the business. To conclude, the period ahead offers meaningful opportunities for dealers international as global mobility 7:37 7 minutes, 37 seconds continues to normalize and governments increasingly rely on trusted partner for public service delivery. Our well diversified presence across geography 7:45 7 minutes, 45 seconds and service lines expanding scale in priority matters and a strong pipeline of engagement positions us to build on our momentum. 7:54 7 minutes, 54 seconds Now I'll handle over the call to Mr. 7:56 7 minutes, 56 seconds Audo to walk you through the fellowship performance. Thank you. 8:12 8 minutes, 12 seconds Yeah. Yeah. Thank you. Thanks, J. Good evening, everyone. I'm pleased to share the consolidated financial for the third 8:20 8 minutes, 20 seconds quarter and 9 months ending December 31st, 2025. 8:25 8 minutes, 25 seconds In Q3 FI26, our total revenue grew of 44% 8:31 8 minutes, 31 seconds yearonear to rupees 737 K up from rupees 513 K last year. This came from steady 8:40 8 minutes, 40 seconds growth in both our visa and digital businesses. The VITA for quarter rose 8:47 8 minutes, 47 seconds 25% to rupees 198 K compared to rupees 158 K last year. The profit before tax 8:56 8 minutes, 56 seconds that was rupees 191 K up 36% from rupees 140 K in the same quarter last year. 9:06 9 minutes, 6 seconds profit after tax grew by 33% to rupees 170 K from 128 K in Q3 FI25. 9:17 9 minutes, 17 seconds Now looking at the 9 month consolidated financial for FI26 revenue increased to rupees 2,184 9:26 9 minutes, 26 seconds K up 46 K from 1,51 K last year. 9 9:33 9 minutes, 33 seconds months IITA grew 35 to rupees 615 K from 455 K last year. 9:44 9 minutes, 44 seconds profit after tax was rupees 537 cr a 36% jump from 300 9:52 9 minutes, 52 seconds 394 cr last year. He nearly hit last full year numbers in just 9 months 10:01 10 minutes, 1 second thanks to more visa application and better operation efficiency. 10:07 10 minutes, 7 seconds Coming to the segment highlight in visa and counselor services for Q3 FI26 10:13 10 minutes, 13 seconds recorded revenue of rupees 449 K up 20% from 376 10:21 10 minutes, 21 seconds K last year. This was driven by 18% more application volume from 10 lakh 7 10 10:30 10 minutes, 30 seconds lakh 10.7 lakh per quarter last this quarter versus 9.1 lakh last year rose 10:38 10 minutes, 38 seconds by 28% to rupees 180 K with a margin at 40% an improvement of 275 basis points 10:48 10 minutes, 48 seconds from 37% margin last Here for 9 months visa and counselor service 10:56 10 minutes, 56 seconds segment revenue rose by 13% to rupees 1,369 11:02 11 minutes, 2 seconds K from 1,27 K in 9 months FI25 11:09 11 minutes, 9 seconds abita jumps but jumped by 35% to rupees 11:14 11 minutes, 14 seconds 558 cr with margin improving to 41% from 34% person reflecting our focus on 11:23 11 minutes, 23 seconds efficiency and profitability. In digital business, Q3 revenue more than doubled 11:30 11 minutes, 30 seconds to rupees 287 K from rupees 17 137 K. A 11:37 11 minutes, 37 seconds bit for the quarter was at 18 K. For 9 months, digital business segment revenue 11:44 11 minutes, 44 seconds reached to rupees 815 cr up from 2 293 11:51 11 minutes, 51 seconds cr in 9 months FI25. A return for the 9 month FI26 11:56 11 minutes, 56 seconds was 57 cr compared to rupees 42 crores last year. The company continues to 12:04 12 minutes, 4 seconds generate strong cash flows and healthy balance sheet. Hence the board has declared an interim dividend of rupees 12:11 12 minutes, 11 seconds two per share. With that with that over to the moderate for question. Thank you. 12:19 12 minutes, 19 seconds Thank you so much sir. Ladies and gentlemen, we'll begin with a question and answer session. Anyone who wishes to ask a question may press star and one on 12:28 12 minutes, 28 seconds their touch telephone. If you wish to remove yourself from the question, you may press star and two. Participants are requested to use while asking a 12:36 12 minutes, 36 seconds question. Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 12:54 12 minutes, 54 seconds Our first question comes from the line of one Soleni from RS RSP venture B. 13:04 13 minutes, 4 seconds Hi management. Uh am I audible? 13:08 13 minutes, 8 seconds Yes, you are. Please proceed with the question. 13:11 13 minutes, 11 seconds Uh yeah. So uh as we saw in this quarter, our visa applications grow very well to 17% YI. Okay. And the management 13:21 13 minutes, 21 seconds also talking like from many quarters and many big contracts are coming globally uh for our dream. So my question on that 13:30 13 minutes, 30 seconds that uh can you just say in next one year or two years which of the countries 13:38 13 minutes, 38 seconds uh contracts are going to renew and how much that will be worth like company wise I know that there will be 13:45 13 minutes, 45 seconds opportunity of very big but just company wise that in next one or two years which big company is going to uh uh give [clears throat] a big order. 13:58 13 minutes, 58 seconds So as we have said that we have grown you know our application volume has also grown by 19% this quarter and we have already announced that we have won a lot 14:06 14 minutes, 6 seconds of new contracts you know with different governments uh this quarter. So you know there many governments which are coming out and we are actively working on it as 14:16 14 minutes, 16 seconds you know we regularly do and then when the results come announced back to the market. 14:23 14 minutes, 23 seconds Okay. And the second question is on employee expense. Uh this quarter employee expense grew uh significantly 14:32 14 minutes, 32 seconds uh from like QFIC was 108 to 123. So is there any one of these uh the expenses 14:41 14 minutes, 41 seconds due to UI centers I assume? Yes. 14:51 14 minutes, 51 seconds So like uh this will be from the normal range from now on right this will continue in the future also there is no 14:58 14 minutes, 58 seconds one out okay and uh just one of a bookkeeping 15:07 15 minutes, 7 seconds question uh can you just give a revenue of ASPL citizenship I data and also in this quarter we will have a revenue of 15:16 15 minutes, 16 seconds UK author also uh so can you just point the number of these What? 15:23 15 minutes, 23 seconds This one? Hello. 15:33 15 minutes, 33 seconds Huh? Which which are the companies you're talking about? 15:36 15 minutes, 36 seconds Uh, citizenship IDA and UK hotel we have acquired last quarter. 15:45 15 minutes, 45 seconds So list about 200 cr was a revenue. Uh 15:52 15 minutes, 52 seconds citizen indust is about 12 12 cr and uh third one UK hotel is about 11 cr. 16:02 16 minutes, 2 seconds Okay. And I is about 70 cr 16:12 16 minutes, 12 seconds 70. Okay. And uh are you going to continue the visa application? You see the travel is going on. So the 15% growth you have mentioned for the FY 26. 16:24 16 minutes, 24 seconds Will it be continued to FY 27 and 28 also? 16:31 16 minutes, 31 seconds Yeah, we have already said that we will next 5 years our target is to achieve uh you know 20 to 25% growth. 16:39 16 minutes, 39 seconds Okay. Yeah. No problem. Uh thank you and uh best of luck for the future sir. 16:45 16 minutes, 45 seconds [clears throat] 16:46 16 minutes, 46 seconds Thank you. Our next question come from the line of Shri Kiral from Money Investor Wealth Management. Please go ahead. 16:53 16 minutes, 53 seconds Uh yeah good evening sir. Congratulation on the great result. Uh I want to understand the sh uh revenue growth 17:00 17 minutes split between organic and inorganic and also uh regarding the IITA margin uh as I see that uh it has been like 17:07 17 minutes, 7 seconds contracted on year on year on basis. So could you elaborate like that what's the key driver behind this and how we should think about the margin normalization 17:15 17 minutes, 15 seconds going ahead a bit you can take this 17:22 17 minutes, 22 seconds yeah so the organic growth has been range around 26% in current quarter 17:30 17 minutes, 30 seconds and the inorganic growth uh the second question uh uh the 26% 17:40 17 minutes, 40 seconds Uh now the 26% you're talking about the inorganic right? 17:49 17 minutes, 49 seconds Okay. And uh my second question was regarding the uh margin. 17:55 17 minutes, 55 seconds Uh hello sir am I audible? Yeah we can hear you. 18:02 18 minutes, 2 seconds Oh yeah so my second question was regarding the IITA margin. uh as I see that uh on year onear basis the margin has been contracted so like what's the 18:10 18 minutes, 10 seconds key driver behind this like how should we think about the margin normalization going forward 18:18 18 minutes, 18 seconds so as we have explained it in our last call also the sales mix has changed a 18:27 18 minutes, 27 seconds little bit because of VA business we have improved our margins quite if you see the segment results 18:35 18 minutes, 35 seconds the growth has been more than uh in the digital business the growth has been more than 100%. There the 18:43 18 minutes, 43 seconds margins have contracted because of credit which is at a lower bit margin business. 18:51 18 minutes, 51 seconds Okay sir that was helpful. Thank you sir. Thank you. 19:00 19 minutes Our next question comes from the line of Warren Subramanyan from Edin Capital. Please go ahead. 19:08 19 minutes, 8 seconds See guys, uh great numbers. Just a couple of things on the consular services business. Um I see that if I just compare the 9 month numbers for 19:15 19 minutes, 15 seconds FI25 versus 26. Uh I think the revenue come from around 440 crores to 280 crores. Uh factory D growth in that 19:23 19 minutes, 23 seconds piece right X of visa revenue essentially. Um so if you could just talk about that business you know is there a firstly is that number correct 19:30 19 minutes, 30 seconds secondly um what is the revenue model there why is like what are your customers is it only India or is it outside India as well um and also like 19:38 19 minutes, 38 seconds why it's going down and what the margin profile looks like for that because it looks like your margin profile is improving as that revenue share is 19:46 19 minutes, 46 seconds reducing you can answer but I didn't understand 19:53 19 minutes, 53 seconds what revenue is you talking Yeah, margins have been improving in uh in visa business. 20:02 20 minutes, 2 seconds Okay, let me let me explain. See if you if you're in your visa and consular business, you have the net revenue that's coming from visa applications, 20:10 20 minutes, 10 seconds that number has been steadily going up, right? So, if I take your total visa and consular revenue and subtract that, you understand right now. 20:21 20 minutes, 21 seconds Hello. 20:24 20 minutes, 24 seconds Okay, I'm saying that if you take your total visa and consular services revenue, right, and you subtract your visa revenue, which is your net revenue 20:32 20 minutes, 32 seconds per application revenue, right? That is a that is a consular revenue, correct? 20:41 20 minutes, 41 seconds Now that consular revenue has been coming down. Okay. 20:50 20 minutes, 50 seconds So, so there's a difference between the the revenue and the net revenue is basically the cost of services that we exclude or we we reduce. There is no 20:59 20 minutes, 59 seconds separate revenue of visa or counselor services. It's it's all clubbed in into one. 21:07 21 minutes, 7 seconds Okay. So the way you should look at revenue is only the net revenue should be looked at. The gross revenue is typically uh including the cost of service basically. 21:18 21 minutes, 18 seconds And your 40% margin is 40% margin is on. Yeah. 21:25 21 minutes, 25 seconds So see if you look at our visa um uh revenue and you reduce the cost of 21:32 21 minutes, 32 seconds services which is a direct services cost then that is the net revenue. 21:39 21 minutes, 39 seconds Okay. And so where does the consular revenue get booked? 21:44 21 minutes, 44 seconds It is part of it. The visa and counselor is one single segment. 21:49 21 minutes, 49 seconds We don't report separately visa and counselor services you know separately. It's part of that. 21:54 21 minutes, 54 seconds No, but then if I just do number of applications into net revenue per application. So you're grossing up the consular revenue into the net revenue for application. Is that understanding correct? 22:07 22 minutes, 7 seconds So that's what I'm trying to uh you know tell you that the visa and counselor services is a single segment that we report. We don't separately report visa 22:15 22 minutes, 15 seconds and counselor separately. So if you look at our 449 crores of revenue in the visa segment, this is both for visa and counselor services. A bit of 180 crores 22:24 22 minutes, 24 seconds or 40% is for both the both the businesses together. 22:28 22 minutes, 28 seconds Yeah, exactly. So within that is the visa revenue 362 or is that just the net revenue for the entire segment? 22:37 22 minutes, 37 seconds So okay I I I can explain you. 449 crores is the revenue from operations of the visa and console services. There are certain cost of services that we have to 22:46 22 minutes, 46 seconds incur. This is basically you know if you look at we have certain at certain places we have partner models. So we have to pay to a partner we have to pay 22:54 22 minutes, 54 seconds to certain vendors. So net revenue is the actual revenue that comes to my city after paying off various costs direct cost. 23:04 23 minutes, 4 seconds So 362 362 crores is the net revenue for me. 23:09 23 minutes, 9 seconds You can indirectly look at like a gross marit gross profit of the business. 23:14 23 minutes, 14 seconds Whatever the direct cost we reduce understood. 23:24 23 minutes, 24 seconds So that means your cost of services have been coming down that's because of your own model the shift own 23:32 23 minutes, 32 seconds exactly cost is going up and the other understood. Okay. Okay. That's also cool. Uh nothing else on my side. 23:39 23 minutes, 39 seconds Thanks. Thank you. Thank you. 23:44 23 minutes, 44 seconds Our next question comes from the line of Shikhamea from Time and Tide Advisor. Please go ahead. 23:53 23 minutes, 53 seconds Hello. Good evening sir. Am I audible? Can you hear me? Yes, you can. 24:01 24 minutes, 1 second Yes. So I actually just had one question regarding uh regarding our all our 24:08 24 minutes, 8 seconds acquisitions. So a do we have acquisitions planned in the future um you know going forward do we have a 24:15 24 minutes, 15 seconds pipeline of companies we are looking to acquire and b internally do we have an IR we want to make as BLS on companies acquired by us. 24:29 24 minutes, 29 seconds I think on the first part I can answer that as you have seen you know we've been acquiring companies in the last few years last year itself we spent around 24:37 24 minutes, 37 seconds 13 to 1400 tres in acquisitions and again you know uh the synergy started to come in we've combined those offices etc 24:45 24 minutes, 45 seconds and so I think definitely you know we have a team we are constantly looking at opportunities but uh we need to we are very conservative in the kind of 24:54 24 minutes, 54 seconds companies we want to buy it gives us long value addition regarding the Can you elaborate on conservative? Sorry. 25:02 25 minutes, 2 seconds When you say we are extremely conservative, you mean on a valuation plan on the kind of 25:10 25 minutes, 10 seconds like I make on synergies, you know, we look at only allied services, visa counselor or government services business which can provide synergies to 25:18 25 minutes, 18 seconds our business. You know the valuations are healthy. Uh you know we can grow the business quickly. we can from our existing offices we can synergize there 25:28 25 minutes, 28 seconds will be cost reduction etc. So those are the couple of parameters that we look at before. 25:33 25 minutes, 33 seconds So so then the UK acquisition we did I don't think that actually synergizes with our business right. So what 25:42 25 minutes, 42 seconds we have already answered that in the last uh investor call also uh that about that acquisition that we are wanting to 25:51 25 minutes, 51 seconds get into all services and that was a one-off thing that we did and going for you know to utilize their experience as 25:58 25 minutes, 58 seconds uh you know we want to get into more travel services and going forward we want to get into management kind of experience where there is no upfront 26:07 26 minutes, 7 seconds capex uh deployment So uh is the understanding correct that if we find another possible acquisition 26:16 26 minutes, 16 seconds in hotel management uh at a good valuation we would look to acquire or is this a oneoff? No, this is 26:25 26 minutes, 25 seconds no as we have explained that last time also that this was that we did to understand experience, gain experience 26:32 26 minutes, 32 seconds and now we'll utilize that experience to get into management contracts not in asset heavy moment. 26:40 26 minutes, 40 seconds Understood. Um yeah sir and uh and lastly on the IRRa generated to BLS as an investor in these 26:49 26 minutes, 49 seconds acquired companies what do we look what names do we look at you look at the 26:58 26 minutes, 58 seconds ROI at least in double digit minimum to get a return especially when 27:06 27 minutes, 6 seconds it's outside India that is a quite a decent return that we are looking at. 27:14 27 minutes, 14 seconds So say on I data adless etc. We looked at getting double digit returns over a 27:20 27 minutes, 20 seconds longer term period of time as a company that has invested in these businesses. 27:28 27 minutes, 28 seconds That's right. 27:30 27 minutes, 30 seconds So I mean is it possible for you to give a payback period or something of sorts because we have a very large goodwill on 27:37 27 minutes, 37 seconds our books and if you give a payback period maybe even ballpark on you know the three companies we've acquired 27:44 27 minutes, 44 seconds recently it would help us understand your thought process much better. 27:51 27 minutes, 51 seconds So currently what we have acquired they are all have a payback between 5 to 7 years. [clears throat] 5 to seven years. Oh, okay. 28:02 28 minutes, 2 seconds [music] 28:02 28 minutes, 2 seconds I missed. Thank you. 28:11 28 minutes, 11 seconds Our next question come from the line of Nul Punjani from 40 Cent. Please go ahead. 28:22 28 minutes, 22 seconds Yeah. Thank you so much for the opportunity sir. I'm uh new to our company. So I would like to understand what uh what all entails in the digital 28:29 28 minutes, 29 seconds services what all uh services come under digital offerings. 28:39 28 minutes, 39 seconds So in digital offering we have basically currently three vertical. One is a business correspondent which is a 28:47 28 minutes, 47 seconds banking wherein we provide the last mile banking. Then we have a loan distribution company which we acquired 28:54 28 minutes, 54 seconds last year. And the third is a egovernance where we provide we call it G2 government to citizen. We provide 29:02 29 minutes, 2 seconds services on behalf of the government to the citizens. So the these are the three verticles we have and sir please correct me if I'm wrong. 29:11 29 minutes, 11 seconds U BS eervices which is again on is is that catering to all the digital services or or is that wrong understanding? 29:22 29 minutes, 22 seconds No, that's correct. That is the one which is providing all the three services. 29:28 29 minutes, 28 seconds Okay. Okay. Okay. Thank you so much. 29:37 29 minutes, 37 seconds Thank you. 29:40 29 minutes, 40 seconds Next question comes from the line of from Sonar Capital. Please go ahead. 29:46 29 minutes, 46 seconds Hello sir. uh those which geographies or visa categories are currently seeing the strongest growth for BLS and can you and 29:55 29 minutes, 55 seconds do you expect this trend is continuing over the next quarter or the next year also? 30:03 30 minutes, 3 seconds See globally all the geographies for us are growing. We have seen good growth coming in from the Middle Eastern market, the South Asian, East Asian 30:10 30 minutes, 10 seconds market, India, China, Latin American countries. Definitely you know the the trend we see continuing going forward 30:19 30 minutes, 19 seconds definitely there is some uh you know war that is happening between Russia and Ukraine that gets streamlined which there is hopes and definitely we'll see 30:28 30 minutes, 28 seconds a good growth in volume coming from that region as well because precoid that was a very big volume for us pre-wall but I 30:35 30 minutes, 35 seconds think after this ends probably the volumes if they come back then that would be a very big reason okay so now India and Europe 30:44 30 minutes, 44 seconds uh trade deal is almost done. So do you expect some more volume from Europe also? 30:54 30 minutes, 54 seconds It's too soon. Uh as you know the trade deal was announced but it will take time for it to get ratified by different 31:01 31 minutes, 1 second bodies in Europe but definitely there will be you know jump in the relationship between Europe and India and definitely we see that volumes could increase in the future because of that. 31:13 31 minutes, 13 seconds Okay sir, that's all from my side. Thank you. 31:22 31 minutes, 22 seconds The next question comes from the line of Sia Deshmuk from Pune East Limited. Please go ahead. 31:30 31 minutes, 30 seconds Hello. 31:34 31 minutes, 34 seconds Yes ma'am. You are uh so I had two questions. The first was uh Slovic contract and MB international 31:43 31 minutes, 43 seconds acquisitions in controvers and the second was uh which quarter can be considered strong risk for the company. 31:57 31 minutes, 57 seconds a bit you want to answer that or we cannot tell those 32:03 32 minutes, 3 seconds see volumes you'll be able to know once uh the these contacts have been matched 32:10 32 minutes, 10 seconds but uh quarter wise Q 4 Q1 and Q4 and Q1 are the ones which are the highest 32:20 32 minutes, 20 seconds volumes and revenues we get okay Sure. Thank you. 32:34 32 minutes, 34 seconds Thank you. 32:36 32 minutes, 36 seconds Our next question comes from the line of Abiji from PISS. Please go ahead. 32:43 32 minutes, 43 seconds Thanks for the opportunity. Hope I'm audible. Uh regarding the republic contract should we expect margin 32:50 32 minutes, 50 seconds compression due to transported expenses before the centers reach optimum utilization. 33:00 33 minutes We will be utilizing lot of centers from our existing centers as well across the world. So you know there will be 33:07 33 minutes, 7 seconds quantities of scale. So definitely initially in any contract that we you know win or deploy in different countries there is a you know 33:17 33 minutes, 17 seconds investment but after that it is quite streamlined and there was a mention of AI in the 33:25 33 minutes, 25 seconds investor presentation. So how are you leveraging AI and can you quantify the impact AI had on your bottom line in the last quarter? 33:36 33 minutes, 36 seconds See it's very difficult to quantify right now of saving that we have made but we have implemented AI in a very practical manner in different 33:43 33 minutes, 43 seconds departments of the organization right from HR to call center to you know customer engagement so you know our answer percentage has increased lot of 33:52 33 minutes, 52 seconds calls you know we picked up quality has improved our recruitment has become better you know we are able to recruit more people faster very difficult to 34:00 34 minutes quantify in terms of cost but we definitely have cost saving uh you know that you have seen you know in terms of some of the angles but I think it's too 34:09 34 minutes, 9 seconds soon to quantify exactly the number but there will be savings right 34:16 34 minutes, 16 seconds correct and last also efficient lastly just wanted to get your views on 34:24 34 minutes, 24 seconds the reason behind allocation of capital and management bandwidth to the digital segment because it effectively the 34:33 34 minutes, 33 seconds consolidated margin profile Yes. And uh also regarding this, how do you see the mix of visa and digital services over the next 3 years? 34:44 34 minutes, 44 seconds You could have said that this was because of one of the acquisitions that we did of artificial solutions which is at a 3% margin. 34:52 34 minutes, 52 seconds The digital business definitely is growing and as we see that we can add more services to that loan business more 35:00 35 minutes margin will come in. So we definitely feel the mix will maintain because we see major growth coming in both the segments of the business. 35:08 35 minutes, 8 seconds So you see margin expanded in your digital services. 35:15 35 minutes, 15 seconds I mean uh visa business also you see the margin has expanded to up to 40% now uh in the last few years. So definitely you 35:23 35 minutes, 23 seconds know uh we see we we we see a growth in the future business as well but right 35:30 35 minutes, 30 seconds now as in we introduce more value added services ancillary services we will see 35:38 35 minutes, 38 seconds that's right the reason I was asking is that because the contribution of it is coming down gradually so even if the margin has expanded to just 40%. 35:49 35 minutes, 49 seconds effect on the blended margin. I mean it's not that meaningful due to the fact that there is several. 36:02 36 minutes, 2 seconds Yeah, I mean I think what we have discussed is that this was the acquisition that we did to enhance the company and I think we are very happy 36:10 36 minutes, 10 seconds with that because going forward you know we can grow that company from our existing centers and zero mass. So definitely we see that whatever is 36:19 36 minutes, 19 seconds achieved now will maintain and our target is to improvise it. 36:26 36 minutes, 26 seconds Got it. That's thank you. 36:34 36 minutes, 34 seconds Our next question comes from the line of Virid Desh Pandi from Alpha Speak Investment. Please go ahead. 36:41 36 minutes, 41 seconds Hello sir. Congratulations for the good set of uh numbers and uh the digital services you explained have been doing 36:49 36 minutes, 49 seconds quite well and all those things that is good but uh actually the as uh you explained that the salaries and employee 36:56 36 minutes, 56 seconds benefits have gone up now almost more than 50% year on year [clears throat] um so what will be the percentage of the if 37:06 37 minutes, 6 seconds you take the blended level of our our turnover is is about 740 crores in this quarter and the employee cost is 123 37:15 37 minutes, 15 seconds crores. So what do you expect to be the normalized uh uh employee cost going forward? 37:26 37 minutes, 26 seconds Oh see if you see if you see our last year audited numbers our employee cost was about 14.75%. 37:36 37 minutes, 36 seconds Now our 9 months is about 15 and a half 15 and a half%. So overall if you see we are in that range of 15%. 37:50 37 minutes, 50 seconds So it will be similar because of this UI or all those things which what we are doing that is not going to increase it in this country. 38:01 38 minutes, 1 second No, no. See, we have got people on board and revenue will start coming now from this quarter onward. 38:10 38 minutes, 10 seconds Okay. Okay. But as you mentioned, it will be in the range of around 15%, 14 and a half, 15%. Similar to the last 38:17 38 minutes, 17 seconds year level and uh secondly, this what are the cash and cash equivalents at the end of this quarter? 38:28 38 minutes, 28 seconds about 144 1400 crores. Okay. And what was it last uh quarter? 38:37 38 minutes, 37 seconds It was about 12 something 1290 or something. Okay. So there is a accretion of about 100. 38:45 38 minutes, 45 seconds Okay. Okay. and this Chinese operations which we which what we have been allowed by the ministry of external affairs uh 38:54 38 minutes, 54 seconds to set up offices across China uh for this purpose. Uh has the work started there and uh because there is expected 39:01 39 minutes, 1 second to be a lot of uh exchange between India and China which had been altered post 39:08 39 minutes, 8 seconds etc. So do you see a good uh significant revenue coming from that uh operations? 39:18 39 minutes, 18 seconds Hello. 39:19 39 minutes, 19 seconds Yeah, we see a good jump in the revenue of the future because exclusively we will be operating from India side. 39:33 39 minutes, 33 seconds So that will be a good booster for us. Okay. Thank you sir. All the best. 39:42 39 minutes, 42 seconds Thank you. Thank you. 39:55 39 minutes, 55 seconds Our next question comes from the line of Isit an individual. 40:03 40 minutes, 3 seconds Am I audible? Yes, you are. 40:08 40 minutes, 8 seconds So, sir, good evening. I hope uh you heard the name of company called Atlas. 40:14 40 minutes, 14 seconds So uh the new age business like Atlas who gives hazel-free visa services in India of almost all the countries and 40:22 40 minutes, 22 seconds personally I even tried that and they did a great job. So what negatives and positives will have on our business from these type of service businesses? Can you please elaborate on this? 40:34 40 minutes, 34 seconds See you are in the business of exclusive government contracts wherein anyone who has to apply for a visa for the governments you work for will have to go 40:42 40 minutes, 42 seconds through us. So any company you know any travel agent any travel agent or any startup or any company that works at the 40:50 40 minutes, 50 seconds visa domain has to go through one of the providers you know for our competitors for applying for any visa. So we are in the field of exclusive outsourcing and that is what we are focused on. 41:00 41 minutes Okay. And my second question is uh uh on slide 10 uh it's mentioned that your digital uh service margin drastically 41:10 41 minutes, 10 seconds reduce from 14.2% to 7%. So can you please explain about that you can explain that? 41:21 41 minutes, 21 seconds Yeah, we as we explained earlier this is because of the pit list the new exposition we did last year and uh here 41:30 41 minutes, 30 seconds the margins are around 3 to four persona margin so that mix has changed the 41:39 41 minutes, 39 seconds overall percentage okay okay thank you thank you so much 41:45 41 minutes, 45 seconds sir thank Thank you. 41:52 41 minutes, 52 seconds Our next question comes from the line of Vun Subramanyan from Asent Capital. Please go ahead. 42:00 42 minutes Thanks for taking my question again. Um I have one question on the e visas. So I just wanted to check in terms of when you go to governments uh embassies to 42:09 42 minutes, 9 seconds renew contracts, have they been discussing implementing e visas uh as a process instead of the manual process uh 42:16 42 minutes, 16 seconds one and what part of that process will necessitate people to still come uh to an embassy? Maybe the biometric card is 42:25 42 minutes, 25 seconds one that stands out, but if you could just walk me through what an e- visa process would look like. Let's say if someone like Spain who's a large uh you 42:32 42 minutes, 32 seconds know customer for us now or social income moves to exclusively e visa for um you know their visa application 42:39 42 minutes, 39 seconds process how would that affect our business how would we still play a role and what will be the impact according to 42:47 42 minutes, 47 seconds I think if you do your research and you see that in Europe they have announced uh in the next few years they are also digitizing part of the process you know 42:55 42 minutes, 55 seconds so that will lead to an increase in volume for us uh itself And people will have to still come to the centers to do the bioact. So it is only part of the 43:03 43 minutes, 3 seconds process that we will only handle digitize. So all the government that we are working for uh you know we are the numbers will grow in the near future and 43:12 43 minutes, 12 seconds the governments to handle the capacity better. They want to digitize part of the process where we will be digitizing it for them. You know certain 43:20 43 minutes, 20 seconds applications will come in that category all processed to us. So we see uh you know the new technologies that are coming in the future as enhancing our 43:28 43 minutes, 28 seconds business. You know biometric was not there five seven years back it got introduced seven years back. So definitely we feel that uh you know we 43:37 43 minutes, 37 seconds have a very good grip on the market and we are in touch with the government. We feel that going forward itself we will see good growth in numbers as you can 43:45 43 minutes, 45 seconds see more volumes in coming in and uh we are adopting whatever technology is coming on. 43:53 43 minutes, 53 seconds So in case of let's say a renewal. So if I would that if that didn't require 44:00 44 minutes okay no so the customer would still have to come to a BLS center. That's that's the main point. 44:09 44 minutes, 9 seconds Okay. That that's very helpful. Thanks for Thank you ladies and gentlemen. Due to 44:17 44 minutes, 17 seconds the time constraint that was the last question for today. I would like to hand the conference over to the management for the closing comments. Thank you and over to you team. 44:27 44 minutes, 27 seconds Thank you everyone for joining this call today. Uh if you have any further questions or clarifications, you can reach out to Barchube or EIT team. Thank you so much. Have a good weekend. 44:39 44 minutes, 39 seconds Thank you so much sir. Ladies and gentlemen, on behalf of the international service summit that concludes this conference. Thank you for joining us and you may now disconnect your rise.