Alankit Limited — Investor Presentation 2020

Mar 5, 2020

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05[th] March, 2020

To, The General Manager Department of Corporate Services Bombay Stock Exchange Limited P.J Towers, Dalal Street Mumbai – 400001 Phones: 022 - 2272 3121, 2037, 2041 Fax: 91-22-22721919 corp.relations@bseindia.com Security Code No. : 531082

The National Stock Exchange of India Ltd.

Exchange Plaza, 5[th] Floor, C-1, Block G, Bandra – Kurla Complex, Bandra (E), Mumbai – 400051 Phones: 022 - 2659 8237, 8238, 8347, 8348 Fax No: (022) 26598120 cmlist@nse.co.in

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 quarter and nine months ended December 31, 2019.

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=9dfb6d634f76eef8691ff30230aff4d0adc585a97 eb66aebfe5bf7235677effa, postalCode=201005, street=C-24-B, GAUR ENCLAVE-1 FLAT NO-B-4,SHALIMAR GARDEN EXT-2,sahibabad,Pasonda,Ghaziabad, serialNumber=f72eec3c1e806a4b9db58f41955fe3abac3 546036f2d6193c6fb95b0492bfabe, o=Personal, cn=Khushboo Arora, title=0298, pseudonym=59598f74530ca0f16357214a13be6a59 Date: 2020.03.05 12:33:41 +05'30'

Khushbo

o Arora KHUSHBOO ARORA COMPANY SECRETARY

CIN : L74900DL1989PLC036860

Registered Office : 205-208, Anarkali Complex, Jhandewalan Extension, New Delhi -110055, India Corporate Office : Alankit House, 4E/2, Jhandewalan Extension, New Delhi -110055, India Phone : +91-11-4254 1234 / 2354 1234 I Fax : +91-11-2355 2001 I Website : www.alankit.in I email : info@alankit.com

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Alankit

Health & Wealth, We Manage Both

Earnings Presentation

9M / Q3-FY20

1

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.

• The Company is backed by strong and motivated promoters and key managerial personnel.

Company Overview

• 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).

• The market cap of the company as on 29[th] February, 2020 was INR 2,072.90 Mn.

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FY19 Financial Snapshot
(Consolidated)
INR in Million
Up 22.64%
Margins
14.12% Margins
10.86%
1,289 182 140
Total
EBITDA PAT
Income
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• E-Governance

• E-Governance Services Allied E-Governance Services

• TIN Facilitation  Multifunctional Devices • TAN  Trading of Smart Card printers

• E-TDS Return Filling  National Judicial Reference

• • Statement of Financial System Transactions (SFT)  Business Correspondence

• AADHAR/UID Services  Atal Pension Yojana  PAN Enrolment Centres  Paper to Follow

• Paper to Follow

• National Insurance Repository

• Central Record Keeping Agency (CRA) Facilitation Centre.

• National Skill Registry

• Manpower Business

• Issuance of Fastag

NSDL, NAASCOM, Government Ministries, State bank of India & Bank of Baroda, Axis Bank, IDP

NSDL, UIDAI, Income Tax Department.

Other Services

GST Suvidha Provider

• Allied Services Business

• Digital Signature Certificate  Forex Business

Mix

Key Clientele

Individuals, small businesses, foreign tourists.

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4

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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 2 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 3 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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9M-FY20 Revenue Mix (%)

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MCGM 1%
Others 4%
Manpower
34%
Trading 18%
TIN 36% UID 3%
P2F 2%
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.

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.

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

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29% 26% 28% Revenue (INR
in MN)
21%
EBITDA M (%)
16% 14% 16%
13%
9% PAT M (%)
11%
851 1,051
296 1,289 1,153
FY16 FY17 FY18 FY19 9M-FY20
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Business Segments

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Alankit
100% E-Governance Allied Services
40% E-Governance Services 60% 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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9M / Q3–FY20

FINANCIAL OVERVIEW

5

9M / Q3-FY20 Financial & Operational Highlights

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Financial Highlights:

• Q3-FY20 Financial Performance (Standalone):

• Total Income: INR 279 Mn

• EBITDA: INR 60 Mn

• EBITDA Margin: 21.51%

• Net Profit: INR 41 Mn

• PAT Margin: 14.70 %

• Diluted EPS (INR): INR 0.29 per share

  • Q3-FY20 Financial Performance (Consolidated):

    • Total Income: INR 329 Mn

    • EBITDA: INR 67 Mn

    • EBITDA Margin: 20.36 %

    • Net Profit: INR 46 Mn

    • PAT Margin: 13.98 %

    • Diluted EPS (INR): INR 0.32 per share

• 9M-FY20 Financial Performance (Standalone):

• Total Income: INR 951 Mn

• EBITDA: INR 164 Mn

• EBITDA Margin: 17.25%

• Net Profit: INR 95 Mn

• PAT Margin: 9.99%

• Diluted EPS (INR): INR 0.67 per share

• 9M-FY20 Financial Performance (Consolidated):

• Total Income: INR 1,153 Mn

• EBITDA: INR 181 Mn

• EBITDA Margin: 15.70%

• Net Profit: INR 109 Mn

• PAT Margin: 9.45%

• Diluted EPS (INR): 0.77 INR per share

Operational Highlights:

• Alankit has started project of selling the FAST TAG in association with Axis Bank

• Revenue for the POS machine has increased from INR 68.43 Lakhs in Q2-FY20 to INR 1.54 Cr in Q3-FY20

• Company’s profitability has increased in Q3-FY20 due to rationalization of expenses and cost control measures

• Alankit has got few projects under the Smart Card division and Manpower segment

Q3-FY20 Standalone Income Statement (IND-AS)

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INCOME STATEMENT (INR MN)	Q3-FY20	Q3-FY19	Y-o-Y	Q2-FY20	Q-o-Q
Revenue from operations	279	319	(12.5)%	377	(26.0)%
Total Expenses	219	259	(15.4)%	326	(32.8)%
EBITDA	60	60	NA	51	17.6%
EBITDA Margin	21.51%	18.81%	270 Bps	13.53%	798 Bps
Depreciation	10	10	NA	10	NA
Finance Cost	4	3	33.3%	4	NA
Other Income	13	16	(18.8)%	1	NA
PBT	59	63	(6.3)%	38	55.3%
Tax	18	26	(30.8)%	14	28.6%
Profit After Tax	41	37	10.8%	24	70.8%
PAT Margins	14.70%	11.60%	310 Bps	6.37%	833 Bps
Other Comprehensive Income	-	-	NA	1	NA
Total Comprehensive Income (After Tax)	41	37	10.8%	25	64.0%
Diluted EPS (INR)	0.29	0.26	11.5%	0.17	70.6%

9M-FY20 Standalone Income Statement (IND-AS)

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INCOME STATEMENT (INR MN)	9M-FY20	9M-FY19	Y-o-Y
Revenue from operations	951	850	11.9%
Total Expenses	787	706	11.5%
EBITDA	164	144	13.9%
EBITDA Margin	17.25%	16.94%	31 Bps
Depreciation	30	27	11.1%
Finance Cost	12	6	100.0%
Other Income	19	29	(34.5)%
PBT	141	140	0.7%
Tax	46	64	(28.1)%
Profit After Tax	95	76	25.0%
PAT Margins	9.99%	8.94%	105 Bps
Other Comprehensive Income	-	(1)	NA
Total Comprehensive Income (After Tax)	95	75	26.7%
Diluted EPS (INR)	0.67	0.53	26.4%

Historical Standalone Income Statement

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INCOME STATEMENT (INR MN)	FY17	FY18	FY19	9M-FY20
Revenue from operations	849	1,044	1,230	951
Total Expenses	648	777	1,048	787
EBITDA	201	267	182	164
EBITDA Margin (%)	23.67%	25.57%	14.80%	17.25%
Depreciation	15	35	37	30
Finance Cost	-	7	10	12
Other Income	17	29	69	19
PBT	203	254	204	141
Tax	70	40	72	46
Profit After Tax	133	214	132	95
PAT Margins (%)	15.67%	20.50%	10.73%	9.99%
Other Comprehensive Income	11	(3)	-	-
Total Comprehensive Income (After Tax)	144	211	132	95
Diluted EPS (INR)	0.93	1.49	0.92	0.67

Standalone Balance Sheet (As per IND-AS)

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PARTICULARS (INR MN)	FY18	FY19	H1-FY20	PARTICULARS (INR MN)	FY18	FY19	H1-FY20
EQUITIES & LIABILITIES				ASSETS
Shareholder Funds				Non Current Assets
(A)Share Capital	143	143	143	(A)Property, plant and equipment	40	200	196
(B)Other Equity	483	581	635	(B)Intangible assets	467	470	462
Total -Shareholder Funds	626	724	778	(C)Financial Asset
Non Current Liabilities				(I)Investments	208	219	219
(A)Financial Liabilities				(II)Other financial assets	77	26	27
(I)Borrowings		82	80	Total - Non –Current Assets	792	915	904
(II)Other Financial Liabilities	187	169	179
(B)Employee benefit obligation	6	14	16	Current Assets
(C)DeferredTax liabilities (Net)	10	46	48	(A)Inventory	29	58	35
Total - Non –Current Liabilities	203	311	323	(B)Financial Assets
Current Liabilities				(I)TradeReceivables	140	264	364
(A)Financial liabilities				(III)Cashand cashequivalents	43	38	157
(I)Short-termborrowings	49	50	50	(D) Othercurrent assets	210	47	48
(II)Trade payables	257	146	244	(E)Current taxassets (Net)	-	5	6
(III) Other financial liability	21	15	15	Total –Current Assets	422	412	610
(B) Currentincome tax liabilities (Net)	1	-	16
(E) Other Liabilities	57	81	88
Total current liabilities	385	292	413
GRAND TOTAL - EQUITIES & LIABILITES	1,214	1,327	1,514	GRAND TOTAL – ASSETS	1,214	1,327	1,514

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Q3-FY20 Consolidated Income Statement (IND-AS)

INCOME STATEMENT (INR MN)	Q3-FY20	Q3-FY19	Y-o-Y	Q2-FY20	Q-o-Q
Revenue from operations	329	340	(3.2)%	492	(33.1)%
Total Expenses	262	275	(4.7)%	434	(39.6)%
EBITDA	67	65	3.1%	58	15.5%
EBITDA Margin	20.36%	19.12%	124 Bps	11.79%	857 Bps
Depreciation	13	13	NA	13	NA
Finance Cost	4	3	33.3%	4	NA
Other Income	16	19	(15.8)%	7	NA
PBT	66	68	(2.9)%	48	37.5%
Tax	20	26	(23.1)%	17	17.6%
Profit After Tax	46	42	9.5%	31	48.4%
PAT Margins	13.98%	12.35%	163 Bps	6.30%	768 Bps
Other Comprehensive Income	-	1	NA	-	NA
Total Comprehensive Income (After Tax)	46	43	7.0%	31	48.4%
Diluted EPS (INR)	0.32	0.30	6.7%	0.22	45.5%

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9M-FY20 Consolidated Income Statement (IND-AS)

INCOME STATEMENT (INR MN)	9M-FY20	9M-FY19	Y-o-Y
Revenue from operations	1,153	885	30.3%
Total Expenses	972	734	32.4%
EBITDA	181	151	19.9%
EBITDA Margin	15.70%	17.06%	(136) Bps
Depreciation	39	32	21.9%
Finance Cost	12	7	71.4%
Other Income	31	35	(11.4)%
PBT	161	147	9.5%
Tax	52	64	(18.8)%
Profit After Tax	109	83	31.3%
PAT Margins	9.45%	9.38%	7 Bps
Other Comprehensive Income	-	-	NA
Total Comprehensive Income (After Tax)	109	83	31.3%
Diluted EPS (INR)	0.77	0.58	32.8%

Historical Consolidated Income Statement

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INCOME STATEMENT (INR MN)	FY17	FY18	FY19	9M-FY20
Revenue from operations	851	1,051	1,289	1,153
Total Expenses	650	789	1,107	972
EBITDA	201	262	182	181
EBITDA Margin (%)	23.62%	24.92%	14.12%	15.70%
Depreciation	15	35	45	39
Finance Cost	-	7	11	12
Other Income	17	38	90	31
PBT	203	258	216	161
Tax	(70)	41	76	52
Profit After Tax	133	217	140	109
PAT Margins (%)	15.63%	20.65%	10.86%	9.45%
Other Comprehensive Income	11	(3)	-	-
Total Comprehensive Income (After Tax)	144	214	140	109
Diluted EPS (INR)	0.93	1.51	0.98	0.77

Consolidated Balance Sheet (As per IND-AS)

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PARTICULARS(INR MN)	FY18	FY19	H1-FY20	PARTICULARS(INR MN)	FY18	FY19	H1-FY20
EQUITIES & LIABILITIES				ASSETS
Shareholder Funds				Non Current Assets
(A)Share Capital	143	143	143	A)Property, plant and equipment	65	223	216
(B)Other Equity	488	592	650	B)Intangible assets	480	490	480
(C)Non-ControllingInterest	35	28	30	C)Financial Asset
Total -Shareholder Funds	666	763	823	(I)Investments	12	12	12
Non Current Liabilities				(III)Other financial assets	77	25	27
(A)Financial Liabilities				Total - Non –Current Assets	634	750	735
(I)Longterm borrowings	-	82	80
(II)Other Financial Liabilities	188	168	179
(B)Employee benefit obligation	6	14	17	Current Assets
(C)Deferred Tax liabilities(Net)	9	48	49	(A)Inventory	29	90	66
Total - Non –Current Liabilities	203	312	325	(B)Financial Assets
Current Liabilities				(I)TradeReceivables	140	268	380
(A)Financial liabilities				(II) Cashand cashequivalents	224	229	164
(I)Short-termborrowings	49	50	50	(C) Othercurrent assets	229	57	235
(II)Trade payables	258	176	261	CurrentTax Asset	-	7	9
(III) Other financial liability	20	15	15	Total –Current Assets	622	651	854
(B) Currentincome tax liabilities (Net)	1		20
(D) Other Liabilities	59	85	95
Total current liabilities	387	326	441
GRAND TOTAL - EQUITIES & LIABILITES	1,256	1,401	1,589	GRAND TOTAL – ASSETS	1,256	1,401	1,589

Key Ratios (Consolidated)

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Income EBITDA (INR Mn) PAT (INR Mn)
FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19
RoE & RoCE Debt Equity
Book Value per Share
34%
28%
19%
29%
26%
10%
13%
0
8%
FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19
ROE ROCE
1,289
1,051 262 217
851 201 182
133 140
296 75
37
0.18 9.87
0.11
0.08 4.42 5.14
3.28
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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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