BLS International

(blueeyedinvestor) #63

BLS International inks pact with Embassy of Algeria

(deep86) #64

Thanks for sharing.

Any idea on How many people actually travel to/ from Algeria? Can we measure the revenue impact?

(blueeyedinvestor) #65

I am trying to figure out the same. Besides this contract was also recently managed by VFS who lost to BLS.

(blueeyedinvestor) #66

(Raj) #67

Recent report from HDFC
BLS-International-Services-23112017.pdf (441.4 KB)

Disc: Invested and no trading in last 3 months

(goyal.neelesh) #68

The remuneration of Nikhil Gupta (MD) and other key positions like CFO are a bit baffling. I can still ignore Shikhar Agarwal’s compensation as he holds 2,00,000 shares of the company as a part of Promoter’s shareholding. Nikhil Gupta on the other hand has no stock options or commission by way of % of company’s profit. He is a CA and has 35+ years of experience. In that context, I am unable to understand his compensation of Rs. 6 lakhs+, which is less than company’s CFO’s compensation of Rs 8+ lakhs which in isolation itself is an odd salary to comprehend.

What am I missing here? Can someone please explain?

(Raj) #69

Please refer to the page 63 of FY17 annual report. There is good amount security deposit balance with each of the names. May be it’s an indirect way of compensating.

Disc: Invested, no trading in last 6 months

(goyal.neelesh) #71

That logic is rationalizing the irrational. The security deposits are much more than the market practices which is rather questionable. Security deposits are returnable at the end of the contract and so is not compensation. Nikhil Gupta doesn’t even has any security deposits

(Madhurkotharay) #72

I think the profit in Indian standalone business is low and hence as per Indian rules which stipulate a limit on management remuneration as a function of profits, the management team can take only limited salary.

(goyal.neelesh) #73

Remuneration to promoter’s and KMPs is governed by Section 198 of the company’s Act which is 10% of profits. Pls see the screenshot I shared above. The allowed remuneration ceiling on basis of company’s profits is Rs. 84 lakhs. Most companies offer commission which is a % of Net profit or stock options in lieu of a lower fixed salary which incentivizes the management. If the company’s profits go up they get rewarded by way of higher commissions or value of stock options going up. This also takes care of the fact that the rewards are aligned to company’s performance and do not cross the ceiling. Come to think of it, the MD doesn’t have any commission, no stocks, just a fixed salary of Rs. 6 lakhs+ per annum. And he is a CA with 30+ years of experience and has been CEO of other known companies before this. And this is for a 2000+ crore market cap company. Even a fresher CA or an MBA gets more than Rs. 6 lakhs p.a these days. All I am looking for is if the management is getting paid by alternate arrangements and is so what are those arrangements. Atleast I can’t digest a compensation of Rs. 6 lakhs for a CEO of a company of this size and multi country operations.

(deep86) #74

Somehow the link to listen to con call is not coming on researchbyte for me. Can anyone share the transcript pdf or alternative source to read the same?

(rvetri) #75

There is a technical problem with RB… Try it tomorrow…

(deep86) #76

For some strange reason i am not able to get the concall audio from researchbyte and company is not responding to my mail either. Can any one share the link / docs for the BLS concalls?

(rvetri) #77

BLS International offers its proposal for VISA processing services to Papua New Guinea ( PNG )

(rvetri) #78

BLS says in the next one or two quarters they are expecting another big order

(Naz) #79

Punjab Sewa Kendra project seems to be facing issues - employees have not been paid salaries for the last 4 months. Total dues from the state government is a whopping Rs. 150 Cr !!

(learning) #80

This delay in payment if not.resolved soon.can turn into a big issue

(ramanhp) #81

The new Congress Govt in Punjab has made the intent clear on transforming the way these centers are running and considers them White elephants. The cash-strapped Govt is looking at ways to reduce the number of centres and make then self-reliant. There is uncertainty but it is clear that the current system will see a change soon.

(Rohinipathi) #82

I have factored this while buying this company. Its difficult to rely on these businesses in India, given the political system the country has. Anything good happens on Punjab project is a bonus for the company.

If one watches the video closely, looks like it is a company driven protest as all the employees blame state govt. and not the company.

Even, if the Govt. plans to close the project and BLS intends to go to court, it will get its receivables. nothing to loose.

Disc: Invested. This incident wont effect my investment thesis.

(ramanhp) #83

I will agree to this @EROHIT316. Plus the Punjab Govt( the little that I know) is not a bull in China shop kind. There might be delay in recieveables but no outright losses.