BLS International Q3 net profits up by 30%
BLS International Services, a provider of outsourced visa and passport services, expects international travel to get tougher following Brexit and Donald Trump becoming the President of the U.S. However these developments would not curtail global travel that is currently growing at 4-5% annually.
As for as the performance of BLS International is concerned, the company is expected to grow nearly 100% this fiscal year. The third quarter results were announced last fortnight and they showed an impressive growth. The company reported net profit of Rs. 16.67 crore ( 2.5 million USD) for Q3FY17 up from Rs. 12.8 crore ( 1.92 million USD ) dollars in the previous quarter. Total Income stood at Rs. 162.8 crore ( 24.35 million USD ) up by 6% and EBITDA registered an increase of 126.6%.
Q3FY17 PAT up by 30.34% at Rs. Rs. 16.67 crore ( 2.5 million USD)
As for as the performance of BLS International is concerned, the company is expected to grow nearly 100% this fiscal year. The third quarter results were announced last fortnight and they showed an impressive growth. The company reported net profit of Rs. 16.67 crore ( 2.5 million USD) for Q3FY17 up from Rs. 12.8 crore ( 1.92 million USD ) dollars in the previous quarter. Total Income stood at Rs. 162.8 crore ( 24.35 million USD ) up by 6% and EBITDA registered an increase of 126.6%.
Commenting on the financial performance of the company Mr. Karan Aggarwal, Executive Director, BLS International, speaking to ET Now Channel said, “Our Indian operations have been stepped up compared to last year. This is because our e-governance project has gone live and it is reflected in Q3 results.”
Q3FY17 PAT up by 30.34% at Rs. Rs. 16.67 crore ( 2.5 million USD)
9MFY17 PAT up by 17.69% at Rs. 32.93 crore ( 5.04 million USD )
Consolidated Results
For the Quarter ended December 31, 2016 (Q3FY17):
- Total Income stood at Rs. 162.80 crore ( 24.63 million USD), up by 10.82% y-o-y
- EBITDA of Rs. 28.10 crore ( 4.3 million USD); y-o-y growth of 100.71%
- Net Profit stood at Rs. Rs. 16.67 crore ( 2.5 million USD); y-o-y growth of 30.34%
- EPS for Q3FY17 stood at Rs. 16.27, as compared to Rs. 12.48 for Q3FY16
For the Nine Months ended December 31, 2016 (9MFY17):
- Total Income stood at Rs. 440.58 crore ( 67.5 million USD), up by 12.66% y-o-y
- EBIDTA of Rs. 48.24 crore ( 7.39 million USD), y-o-y growth of 54.12%
- PAT of Rs. 32.93 crore ( 5.04 million USD ), up by 17.69%
- EPS for 9MFY17 stood at Rs. 32.14, as compared to Rs. 27.31 for 9MFY16
The growth of BLS International is the last fiscal year has been primarily due to winning the global visa contract of Spain estimated at €175 million (about Rs. 1,300 crore). Mr. Karan Aggarwal in his interaction with the anchor of the channel said, “Winning the Spanish contract meant opening of 66 offices in new locations and we expect to complete 129 offices in 47 countries before March end.”
The Spain contract is a major milestone for BLS International’s growth. The company is now recognized as a global player in the consular services industry. BLS is an authorized Service Provider for attestation of documents by the Ministry of External Affairs, India. It also serves the Embassy of the State of Kuwait, UAE, Hungary, Malaysia, Singapore and others in the field of consular services.
When queried about the high operational costs for Q3, Mr. Aggarwal explained the dynamics of the consular services industry, “When we win a contract, the initial quarters would show higher numbers as operational expenses are higher before they plateau.”
BLS’s other big gain was winning the e-governance project worth Rs. 1,500 crore ( 230 million USD ) from Punjab government last year. The company put up 2,147 Sewa Kendras where 78 services of the State Government is provided to the citizens through this single window.
The Spain assignment as well as e-Governance project in Punjab has made BLS International extremely optimistic of the future; both gains of this fiscal year.
The volume of applications that BLS International handles in visa and passport services is mind boggling. Mr. Aggarwal gives an overview of the scale of operation, “In 2015-16 BLS processed 1.25 million applications on the visa and passport services. This year we have processed close to 2.5 million and next year we would definitely be doing 3.5 to 4.0 million applications given the present order book. On e-governance we have processed over 12 million applications this 2016-17. This will rise to 25 to 30 million in the next year.
BLS International has bid for six major contracts. The company plans to add at least a couple of them in the order books. On the e-governance front, BLS is in touch with various state governments and a distinct possibility of winning a major contract.
Given these quarterly numbers and new client acquisitions on the anvil BLS International is poised to soar to greater heights in the fiscal 2017-18 in terms of volume of applications and revenue.
The Spain contract is a major milestone for BLS International’s growth. The company is now recognized as a global player in the consular services industry. BLS is an authorized Service Provider for attestation of documents by the Ministry of External Affairs, India. It also serves the Embassy of the State of Kuwait, UAE, Hungary, Malaysia, Singapore and others in the field of consular services.
When queried about the high operational costs for Q3, Mr. Aggarwal explained the dynamics of the consular services industry, “When we win a contract, the initial quarters would show higher numbers as operational expenses are higher before they plateau.”
BLS’s other big gain was winning the e-governance project worth Rs. 1,500 crore ( 230 million USD ) from Punjab government last year. The company put up 2,147 Sewa Kendras where 78 services of the State Government is provided to the citizens through this single window.
The Spain assignment as well as e-Governance project in Punjab has made BLS International extremely optimistic of the future; both gains of this fiscal year.
The volume of applications that BLS International handles in visa and passport services is mind boggling. Mr. Aggarwal gives an overview of the scale of operation, “In 2015-16 BLS processed 1.25 million applications on the visa and passport services. This year we have processed close to 2.5 million and next year we would definitely be doing 3.5 to 4.0 million applications given the present order book. On e-governance we have processed over 12 million applications this 2016-17. This will rise to 25 to 30 million in the next year.
BLS International has bid for six major contracts. The company plans to add at least a couple of them in the order books. On the e-governance front, BLS is in touch with various state governments and a distinct possibility of winning a major contract.
Given these quarterly numbers and new client acquisitions on the anvil BLS International is poised to soar to greater heights in the fiscal 2017-18 in terms of volume of applications and revenue.
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