BLS International Services Ltd, a global technology-enabled services partner for governments and citizens and globally known service provider for its Visa and consular services with operations in 66 countries, recently released its unaudited consolidated financial results for the quarter and six-month period ending September 30, 2023. The company has posted a 60.81 % jump in its profit to Rs 82 crore in the second quarter of the current fiscal and continues to experience robust growth in profitability, marked by improved operational performance and record-breaking figures.
Mr. Shikhar Aggarwal, Joint Managing Director of BLS International Services Ltd., expressed satisfaction with the company’s performance, emphasizing its alignment with expectations. He highlighted their robust EBITDA and PAT growth, the expansion of EBITDA margins, and promising opportunities in emerging markets.
As BLS International continues to focus on expanding its reach through organic and inorganic growth, it strives to maintain a strong internal rate of return threshold, further solidifying its position as a key player in the global tech-enabled services industry.
Strong Operating Results
In Q2FY24, the company’s consolidated revenue increased by 14.3% year-on-year (YoY) to reach Rs. 407.7 Cr. This growth was accompanied by a remarkable 52.7% YoY increase in operating EBITDA, which reached Rs. 86.7 Cr. BLS International’s consistent focus on an improved business mix, particularly within the Visa and Consular services segment, has contributed significantly to maintaining operating EBITDA margins above 20%.
The company’s steadfast commitment to enhancing profitability and cash generation has led to its position as a debt-free entity, boasting approximately Rs. 687 Cr in cash reserves. Furthermore, BLS International has delivered substantial returns for its shareholders, with Return on Capital Employed (ROCE) standing at 35.5% and Return on Equity (ROE) at 34.6% based on H1FY24 annualized financials.
BLS International continues to maintain its status as one of the world’s top three Visa and Consular Services providers. The company processes Visa applications for numerous countries, including Spain, Italy, Portugal, Germany, Thailand, Hungary, Morocco, India, Vietnam, Malaysia, and Slovakia. It actively pursues contracts and tenders for visa services across the globe, anticipating further growth.
Several factors underpin BLS International’s growth trajectory including opening up key geographies for travel and tourism; Securing new contracts and tenders in the pipeline; Increasing demand for value-added services; and potential inorganic opportunities in Visa and Consular services and Digital Services segments.
Quarterly and Half-Yearly Performance
In Q2FY24 compared to Q2FY23, BLS International demonstrated impressive growth: Operational Revenue reached ₹ 407.74 crores, a 14.26% increase and EBITDA surged to ₹ 86.74 crores, a growth of 52.71%, while EBITDA Margins increased to 21.27% compared to 15.92% in Q2FY23.
The Profit Before Tax (PBT) stood at ₹ 87.18 crores, reflecting a 55.07% YoY growth, and Profit After Tax (PAT) for the quarter was ₹ 82.00 crores, marking a substantial 60.81% YoY increase.
For the first half of the fiscal year, H1FY24 outperformed H1FY23:,Operational Revenue reached ₹ 791.22 crores, growing by 25.66%. EBITDA stood at ₹ 166.79 crores, an 88.90% increase., PBT reached ₹ 167.62 crores, up by 89.11%., PAT for the first half was ₹ 152.99 crores, a remarkable 87.28% YoY growth.
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