Fundamental Analysis – BLS International (BLS)

About the Stock:

BLS International Services Ltd., an industry leader with over 18 years of experience, is renowned as a reliable tech-enabled service provider for governments and citizens. Specializing in visa, passport, consular, and citizen services, BLS International has consistently set benchmarks since its inception in 2005. The company’s accolades include being featured in prestigious lists like “India’s Most Valuable Companies” by Business Today Magazine and “Best under a Billion” companies by Forbes Asia. Operating in collaboration with 46 client governments across 64 nations, BLS International ensures top-notch data security and exceptional services through its extensive global network of over 50,000 centers, supported by a dedicated team of 60,000 employees and associates. Having processed more than 220 million applications, BLS International demonstrates its steadfast commitment to excellence.

Business Model:

Visa & Consular Services:

• Visa Processing: Offering a complete range of services to streamline visa processing.
• Value-Added Services (VAS): Providing comprehensive solutions to improve customer satisfaction and convenience.
• Consular: Delivering consular services on behalf of embassies and diplomatic missions.

Digital Services:

• E-Governance Services: Providing citizen-centric services at the grassroots level.
• Value-Added Services in Banking: Extensive network for delivering essential banking services to remote underserved areas.
• Assisted E-Commerce: Facilitating assisted purchasing and nationwide delivery services.

Company Valuation
Sector	Consumer Services
NSE	BLS
BSE	540073
Market Capitalization	Rs 14,583 Crore (As of Mar 05, 2024)
Book Value Per Share	Rs 19.50
Face Value	Rs 1
P/E ratio	48.81
52 week H/L	429.95 / 149.65
Dividend Yield (%)	0.21

Shareholding Pattern
Particulars	Dec-22	Mar-23	Jun-23	Sept 2023	Dec 2023
Foreign Promoters %	0	0	0	0	0
Indian Promoters %	74.4	74.41	71.68	71.52	71.52
DIIs %	0.05	0.05	0.04	0.07	0.88
FIIs %	8.2	7.57	8.46	7.66	7.56
Others %	17.35	17.97	19.82	20.75	20.04

Ratios (Consolidated)
Particulars	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
ROCE %	34.61	13.93	11.26	22.42	32.43
ROE %	33.25	13.09	11.33	21.6	29.77
ROA %	22.3	11.16	10.54	19.93	26.15
Interest Coverage Ratio	10.4	16.22	29.25	63.52	86.67
D/E	0.1	0	0	0.01	0
P/B	3.15	0.7	2.06	4.2	8.47

Balance Sheet (Consolidated Figures in Rs. Crores.)
(Year-end March)	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Share Capital	10	10	10	10	41
Reserves	362	418	450	560	762
Borrowings	38	1	0	3	0
Other Liabilities	67	34	32	52	135
Total Liabilities	477	464	491	625	938
Fixed Assets	51	41	38	112	234
Capital WIP	3	0	0	0	0
Investments (Long Term)	28	29	24	70	88
Other Assets	395	394	430	442	616
Total Assets	477	464	491	625	938

Profit & Loss (Consolidated Figures in Rs. Crores.)
(Year-end March)	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Sales	804	786	478	850	1,516	1,678
Other Income	43	13	19	15	21	32
Expenses	693	701	438	742	1,293	1,355
Operating Profit	154	98	60	123	244	354
OPM%	19	13	12	14	16	21
Interest	13	4	2	2	3	2
Depreciation	19	12	9	7	18	27
Profit Before Tax	122	55	48	114	220	345
Tax%	14	4	-4	2	7	9
Net Profit	105	52	50	111	201	302
PATM%	13	7	10	13	13	18

Cash Flows (Consolidated Figures in Rs. Crores.)
(Year-end March)	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Cash from Operating Activity	136	116	45	185	261
Cash from Investing Activity	-68	-107	-22	-172	-238
Cash from Financing Activity	-87	-54	-9	-12	7
Net Cash Flow	-20	-45	13	2	30

Q3 FY24 Result Update:

• Operational Revenue reached INR 437.88 crores in Q3 FY24, remaining consistent with the previous quarter and rising by 7.4% quarter-on-quarter.
• Growth was observed in both Visa & Consular services and the digital business, driving the overall revenue increase.
• EBITDA for Q3 FY24 was INR 88.58 crores, marking a 33.61% year-on-year growth. EBITDA Margins expanded to 20.23% compared to 15.14% in Q3 FY23.
• Expansion of EBITDA margins was driven by a favorable business mix and operational efficiencies.
• PBT before exceptional items stood at INR 90.99 crores in Q3 FY24, showing a growth of 31.30% from INR 69.30 crores in Q3 FY23.
• PAT for the quarter reached INR 87.18 crores, reflecting a significant year-on-year growth of 90.15% from INR 45.85 crores in the corresponding period of the previous financial year.

Quarterly Results (Consolidated Figures in Rs. Crores)
Particulars	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sept 2023	Dec 2023
Sales	357	438	449	383	408	438
Other Income	3	7	7	7	9	9
Expenses	300	372	382	303	321	349
Operating Profit	60	73	74	87	95	98
OPM%	17	17	16	23	23	22
Interest	0	0	0	0	1	1
Depreciation	4	4	8	6	7	6
Profit Before Tax	56	45	87	80	87	91
Tax%	9	-3	12	12	6	4
Net Profit	50	51	69	69	79	85
PATM%	14	12	15	18	19	19

Conclusion:

In summary, BLS International’s stock analysis underscores its remarkable growth and resilience in operations. With strong financial performance, global reach, and a focus on enhancing cash flow, the company is poised for sustained success. Its recent global contract for visa application outsourcing reaffirms its credibility and reliability. BLS International’s commitment to excellence and value-added services bodes well for investors, highlighting its significance in the visa and consular services domain. With a steadfast dedication to innovation and customer satisfaction, BLS International is primed for a promising future in the global market.