Alankit Limited — Investor Presentation 2020

Jul 29, 2020

29[th] July, 2020

To, The General Manager The National Stock Exchange of India Ltd. Department of Corporate Services Exchange Plaza, 5[th] Floor, Bombay Stock Exchange Limited C-1, Block G, Bandra – Kurla Complex, P.J Towers, Dalal Street Bandra (E), Mumbai – 400001 Mumbai – 400051 Phones: 022 - 2272 3121, 2037, 2041 Phones: 022 - 2659 8237, 8238, 8347, 8348 Fax: 91-22-22721919 Fax No: (022) 26598120 corp.relations@bseindia.com cmlist@nse.co.in Security Code No. : 531082 Security Code No. : ALANKIT

Sub: Earnings Presentation

Dear Sir(s),

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Please find enclosed herewith the Earnings Presentation of the Company for the Q4 and financial year ended March 2020.

Kindly take above intimation on your record.

Thanking you.

Sincerely yours, For Alankit Limited

Digitally signed by Khushboo Arora DN: c=IN, st=Uttar Pradesh, 2.5.4.20=9dfb6d634f76eef8691ff30230aff4d0adc585a97eb66aebfe Khushboo 5bf7235677effa, postalCode=201005, street=C-24-B, GAUR ENCLAVE-1 FLAT NO-B-4,SHALIMAR GARDEN EXT-2,sahibabad,Pasonda,Ghaziabad, serialNumber=f72eec3c1e806a4b9db58f41955fe3abac3546036f2d 6193c6fb95b0492bfabe, o=Personal, cn=Khushboo Arora, Arora title=0298, pseudonym=59598f74530ca0f16357214a13be6a59 Date: 2020.07.29 15:13:36 +05'30' Khushboo Arora Company Secretary and Compliance Officer

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Alankit

Health & Wealth, We Manage Both

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Earnings Presentation
FY20 / Q4 - FY20
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Executive Summary

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• § Alankit Group is one of the largest group in the country providing E-Governance Services and Products aligned with welfare schemes devised by the government.

• § The Group started its business operations in India in 1991 under the guidance of Mr. Alok Kumar Agarwal.

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§ The Company is backed by strong and motivated promoters and key managerial personnel.
Company § Alankit limited (Alankit) is a leading e-Governance Service Provider listed on both the premier stock exchange institutions of the country;
National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE).
Overview
§ The market cap of the company as on 30 [th] June, 2020 was INR 2,460.7 Mn.
FY20 Financial Snapshot E-Governance
Other Services
(Consolidated) E-Governance Services Allied E-Governance Services
INR in Million § TIN Facilitation § Multifunctional Devices GST Suvidha Provider
• TAN § Trading of Smart Card printers
Up 19.97% • E-TDS Return Filling § National Judicial Reference
• Statement of Financial System Allied Services
Transactions (SFT) § Business Correspondence Business
§ AADHAR/UID Services § Atal Pension Yojana § Digital Signature Certificate
§ PAN Enrolment Centres § Paper to Follow § Forex Business Mix
Margins § Central Record Keeping Agency § National Insurance Repository
13.97% Margins
8.97% (CRA) Facilitation Centre. § National Skill Registry
§ Manpower Business
§ Issuance of Fastag
1,561 218 140
NSDL, UIDAI, Income Tax NSDL, NAASCOM, Government Individuals, small businesses, Key
Department. Ministries, State bank of India & Bank foreign tourists.
Operational
Income EBITDA PAT of Baroda, Axis Bank, IDBI Bank Clientele
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Company Overview

Alankit Group is one of the largest players providing E-Governance services in the country.

Alankit has market leadership in Tax Information Network (TIN) facilitation business (PAN, TAN & e-TDS) and is also a market leader in other services of UID, P2F, NSR, NIR etc.

It has a strong presence in all the major parts of India with a large network of business centers and regional offices along with overseas presence in UK, UAE and Singapore.

Robust & established delivery franchise with professionals (CA’s, tax professional, lawyers etc.) as partners.

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FY20 Revenue Mix (%)
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MCGM 1%
Others 12%
Manpower
35%
Trading 11%
UID 3%
TIN 33% P2F 2%
BC 1%
POS 2%
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*Others include BSES Project, GSP, EESL Project, etc. Revenue Mix is on standalone basis.

The company is appointed as a GST Suvidha Provider (GSP) by GSTN in 2017.

Operational Revenue (INR Mn), EBITDA & PAT Margins (%)

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Alankit Limited has also been appointed as a Unified Money Changer (FMCC) by the RBI in Alankit Forex India Ltd (AFIL).

Verasys Technologies Pvt Ltd, a 51% subsidiary of Alankit Ltd has received the approval from the Controller of Certifying Authority to act as a certifying authority for issuance of digital signatures and e-sign service provider for a period of 5 years.

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28%
1,561 Revenue (INR in
1,301 MN)
1,051 15% 14% EBITDA M (%)
21%
PAT M (%)
11%
9%
FY18 FY19 FY20
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Business Segments
Alankit
100% E-Governance Allied Services
36% E-Governance Services 64% Allied E-Governance Services Digital Signature Certificate
TIN Facilitation Centres Multi Functional Devices Forex Business
Trading of Smart Card Printers
PAN Centres
National Judicial Reference System
UID Services
Business Correspondent
CRA Facilitation Centres
Atal Pension Yojana
Paper to follow
National Insurance Repository
National Skill Registry
Manpower Business
GST Suvidha Provider
Issuance of Fastag
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FY20 / Q4-FY20 FINANCIAL OVERVIEW

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FY20 / Q4-FY20 Financial Highlights

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Financial Highlights:

• Q4-FY20 Financial Performance (Standalone):

• Operational Income: INR 346 Mn

• EBITDA: INR 45 Mn

• EBITDA Margin: 13.01 %

• Net Profit: INR 32 Mn

• PAT Margin: 9.25%

• Diluted EPS (INR): INR 0.23 per share

  • FY20 Financial Performance (Standalone):

    • Operational Income: INR 1,297 Mn

    • EBITDA: INR 209 Mn

    • EBITDA Margin: 16.11 %

    • Net Profit: INR 127 Mn

    • PAT Margin: 9.79%

    • Diluted EPS (INR): INR 0.89 per share

• Q4-FY20 Financial Performance (Consolidated):

• Operational Income: INR 409 Mn

• EBITDA: INR 37 Mn

• EBITDA Margin: 9.05%

• Net Profit: INR 31 Mn

• PAT Margin: 7.58%

• Diluted EPS (INR): INR 0.22 per share

• FY20 Financial Performance (Consolidated):

• Operational Income: INR 1,561 Mn

• EBITDA: INR 218 Mn

• EBITDA Margin: 13.97%

• Net Profit: INR 140 Mn

• PAT Margin: 8.97%

• Diluted EPS (INR): INR 0.98 per share

Q4-FY20 Operational Highlights

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Operational Highlights:

• Alankit Limited has entered into a “Business Correspondent Agreement” with the IDBI Bank Limited to act as a Corporate Business Correspondent (BC).

• Alankit Limited enters into partnership with IDP , an industry leader in innovative identification card printer technology. –

• Alankit is launching innovative Smart Card Printing solutions range (SOLID series first in India) for secure, smart& seamless access through ID - cards such as Pan, Aadhaar, Corporate ID cards, student ID cards etc. IDP is an industry leader dedicated to improving the photo identification market by developing card printers, encoders and software with diverse and innovative uses of technology.

• Alankit Limited enter into agreement with the UTI Infrastructure Technology and Services Limited (UTIITSL) PAN Card services that includes New PAN Card application, PAN Correction, Duplicate PAN, PAN card of NRIs, Lost PAN, e-PAN Card etc.

• Foreign Exchange Department of Reserve Bank of India ( “RBI” ) has granted Money Transfer Service Scheme (MTSS) License to one of our Subsidiary Alankit Forex India Limited, Full Fledged Money Changer (FFMC) as Indian Agent to undertake Inward cross-border money Transfer Service activities in India in association with Overseas Principal M/s Western Union Financial Services Inc., Colorado, USA

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Q4-FY20 Standalone Income Statement (IND-AS)

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INCOME STATEMENT (INR MN)	Q4-FY20	Q4-FY19	Y-o-Y	Q3-FY20	Q-o-Q
Revenue from operations	346	380	(8.9)%	279	24.0%
Total Expenses	301	341	(11.7)%	219	37.4%
EBITDA	45	39	15.4%	60	(25.0)%
EBITDA Margin	13.01%	10.26%	275 Bps	21.51%	(850) Bps
Depreciation	10	10	NA	10	NA
Finance Cost	3	4	(25.0)%	4	(25.0)%
Other Income	33	40	(17.5)%	13	153.8%
PBT	65	65	NA	59	10.2%
Tax	33	10	230.0%	18	83.3%
Profit After Tax	32	55	(41.8)%	41	(22.0)%
PAT Margins	9.25%	14.47%	(522) Bps	14.70%	(545) Bps
Other Comprehensive Income	5	2	150.0%	-	NA
Total Comprehensive Income (After Tax)	37	57	(35.1)%	41	(9.8)%
Diluted EPS (INR)	0.23	0.39	(41.0)%	0.29	(20.7)%

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FY20 Standalone Income Statement (IND-AS)

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INCOME STATEMENT (INR MN)	FY20	FY19	Y-o-Y
Revenue from operations	1,297	1,230	5.4%
Total Expenses	1,088	1,048	3.8%
EBITDA	209	182	14.8%
EBITDA Margin	16.11%	14.80%	131 Bps
Depreciation	40	37	8.1%
Finance Cost	14	10	40.0%
Other Income	52	69	(24.6)%
PBT	207	204	1.5%
Tax	80	72	11.1%
Profit After Tax	127	132	(3.8)%
PAT Margins	9.79%	10.73%	(94) Bps
Other Comprehensive Income	5	-	NA
Total Comprehensive Income (After Tax)	132	132	NA
Diluted EPS (INR)	0.89	0.92	(3.3)%

Standalone Balance Sheet (As per IND-AS)

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PARTICULARS (INR MN)	FY19	FY20	PARTICULARS (INR MN)	FY19	FY20
EQUITIES & LIABILITIES			ASSETS
Shareholder Funds			Non Current Assets
(A) Share Capital	143	143	A) Property, plant and equipment	200	184
(B) Other Equity	581	714	B) Intangible assets	470	463
Total -Shareholder Funds	724	857	C) Financial Asset
Non Current Liabilities			(I) Investments	219	284
(A) Financial Liabilities			(II) Other financial assets	26	34
(I) Borrowings	82	76	Total - Non – Current Assets	915	965
(II) Other Financial Liabilities	169	192
(B) Provisions	14	10
(C) Deferred Tax liabilities (Net)	46	63	Current Assets
Total - Non – Current Liabilities	311	341	(A) Inventory	58	28
Current Liabilities			(B) Financial Assets
(A) Financial liabilities			(I) Trade Receivables	273	366
(I)Short-term borrowings	50	49	(II) Cash and cash equivalents	13	39
(II) Trade payables	146	203	(III) Bank balance other than (II) above	25	26
(III) Other financial liability	15	16	(C) Current Tax Assets (Net)	5	6
(B) Other current Liabilities	81	109	(D) Other current assets	38	181
(C) Provisions	-	1	Total – Current Assets	412	646
(D) Current Tax Liabilities (Net)	-	35
Total current liabilities	292	413
GRAND TOTAL - EQUITIES & LIABILITES	1,327	1,611	GRAND TOTAL – ASSETS	1,327	1,611

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Q4-FY20 Consolidated Income Statement (IND-AS)

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INCOME STATEMENT (INR MN)	Q4-FY20	Q4-FY19	Y-o-Y	Q3-FY20	Q-o-Q
Revenue from operations	409	416	(1.7)%	329	24.3%
Total Expenses	372	374	(0.5)%	262	41.9%
EBITDA	37	42	(11.9)%	67	(44.7)%
EBITDA Margin	9.05%	10.10%	(105) Bps	20.36%	(1,131) Bps
Depreciation	13	13	NA	13	NA
Finance Cost	3	4	(25.0)%	4	(25.0)%
Other Income	43	44	(2.3)%	16	168.8%
PBT	64	69	(7.2)%	66	(3.0)%
Tax	33	12	175.0%	20	65.0%
Profit After Tax	31	57	(45.6)%	46	(32.6)%
PAT Margins	7.58%	13.70%	(612) Bps	13.98%	(640) Bps
Other Comprehensive Income	5	1	150.0%	-	NA
Total Comprehensive Income (After Tax)	36	58	(37.9)%	46	(21.7)%
Diluted EPS (INR)	0.22	0.40	(45.0)%	0.32	(31.3)%

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FY20 Consolidated Income Statement (IND-AS)

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INCOME STATEMENT (INR MN)	FY20	FY19	Y-o-Y
Revenue from operations	1,561	1,301	19.9%
Total Expenses	1,343	1,108	21.2%
EBITDA	218	193	12.9%
EBITDA Margin	13.97%	14.83%	(86) Bps
Depreciation	52	45	15.5%
Finance Cost	15	11	36.4%
Other Income	74	79	(6.3)%
PBT	225	216	4.1%
Tax	85	76	11.8%
Profit After Tax	140	140	NA
PAT Margins	8.84%	10.76%	(192) Bps
Other Comprehensive Income	5	-	NA
Total Comprehensive Income (After Tax)	145	140	2.9%
Diluted EPS (INR)	0.98	0.98	NA

Consolidated Balance Sheet (As per IND-AS)

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PARTICULARS (INR MN)	FY19	FY20	PARTICULARS (INR MN)	FY19	FY20
EQUITIES & LIABILITIES			ASSETS
Shareholder Funds			Non Current Assets
(A)Share Capital	143	143	A)Property,plant and equipment	223	201
(B)Other Equity	592	733	B)Intangible assets	490	479
(C)Non-ControllingInterest	28	29	C)Financial Asset
Total -Shareholder Funds	763	905	(I)Investments	12	-
Non Current Liabilities			(II)Other financial assets	25	41
(A)Financial Liabilities			Total - Non - Current Assets	750	721
(I)Longterm borrowings	82	76
(II)Other Financial Liabilities	168	192
(B)Provisions	14	11	Current Assets
(C)Deferred Tax liabilities(Net)	48	65	(A)Inventory	90	47
Total - Non – Current Liabilities	312	344	(B)Financial Assets
Current Liabilities			(I)Trade Receivables	277	380
(A)Financial liabilities			(II)Cash and cash equivalents	197	109
(I)Short-term borrowings	50	49	(III)Bank balance other than(II)above	31	45
(II)Tradepayables	176	228	(C)Other current assets	46	405
(III)Other financial liability	15	17	Current Tax Asset	10	9
(B)Other current liabilities	85	137	Total – Current Assets	651	995
(C)Provisions	-	1
(D)Current tax liabilities(Net)	-	35
Total current liabilities	326	467
GRAND TOTAL - EQUITIES & LIABILITES	1,401	1,716	GRAND TOTAL – ASSETS	1,401	1,716

Key Ratios (Consolidated)

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Income EBITDA (INR Mn) PAT (INR Mn)
FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20
RoE & RoCE Debt Equity Book Value per Share
34%
19%
16%
26%
14% 13%
FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20
ROE ROCE
1,561 262 217
218
1,301
193
1,051 140 140
0.18 5.99
0.15 5.14
4.42
0.08
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Note: FY17, FY18 and FY19 numbers are as per IND-AS

Disclaimer

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Disclaimer:

No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of Alankit Limited, which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment.

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments.

This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from.

This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.

Valorem Advisors Disclaimer:

Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review.

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Mr. Anuj Sonpal Valorem Advisors Investor Relations Management Tel: +91-22-49039500 Email: alankit@valoremadvisors.com

Designed by – Priyamvada Ghia

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THANK YOU

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