BLS International


(Capsule91) #164

200cr of receivable due has been put in budget by the punjab gov for this financial year to pay bls…
Of which 35cr has been received, in month of april, more is expected by june end…
Of this 200cr, 18cr of salary is still due and 13cr to vendors…
A major weight has been lifted imo
All the debts can be easily paid off from this receivable itself, not considering the cash flow from new contracts


(Capsule91) #165

The uk contract is worth 110million gbp , which is 100% share of bls topline incoming…
Tenure 3 years extension provision to 2 more years…
A small contribution from the uk project will be booked in q2, but the project comes online from oct2018 onwards…
Management guides 30 to 40percent pat growth in fy19, from the fy18 annual pat, taking into co sideration punjab revenue will cease from q1 onwards…
The tourist visa processing in uk , that segment is still with vfs, will expire in q4fy19, the company expects to outbid and acquire that contract as well…
Presently enjoys 10percent of market share in the visa outsourcing business globally


(ayush09) #166

Most of their cash seems to be parked in it’s dubai subsidiary. Any idea about remittance of cash to india ?
Also most of their revenues are from subsidiaries. It would be good to check their audit reports as the current auditor has said he has relied on the subsidiary auditors reports for his opinion.


(rao13) #167

Please share the Concall transcript if available.
Thanks


(rajeshaaidu) #168

Any sign of manufacturing numbers like vakrangee or manpasand?
I think you are following this company for 2 yr. I have just invested inspite of agreeing with your comment about management quality.
If they are having reserve of 164 cr why they have borrowed 44.6 cr during 16-17 and they have paid 5.4 cr of interest. They have received interest income of 32 lakhs on their investment.

Not able to understand. Could somebody explain? Thanks in advance.


(adeepsandhu) #169

I think the cash held by this company is parked in their UAE subsidiary. If they bring this cash to India they will have to pay substantial tax on it. I have found management reluctant to get that cash in India.

Disclosure: Invested


(rajeshaaidu) #170

(Sandokan) #171

Hi.

I am very new here and still taking baby steps in increasing my knowledge. So please let me know if I am making any error in the following observations:

  1. The GOI has recently increased the validity of eVisa from one to two months. Further this eVisa can now be applied two times in a year across three categories: tourist, business and medical. Earlier it was tourist only. This will certainly impact the visa business of BLS as the number of eVisas has gone up substantially.

  2. It may also be useful to try to obtain feedback about their services. A relative of mine living abroad is very angry and upset saying that their service was very bad. I understand reviews about the various embassies on Google may help. This may have a long term effect on grant of future contracts to BLS.

  3. On the other hand, the margins in these services are quite good which could add to the bottomline, especially with the UK contract.

Be that as it may, I personally feel, even after having a look at the company financials and projections, earlier high levels of stock price may not be seen for a long time.

Regards
Sandeep
Disc: Not invested and do not intend to


(Capsule91) #172

This definitely needs further analysis…
But in a reflex to answer to this, i remember asking them about this in q3 concall about the possible threat to the visa outsourcing business by evisa in the segments bls operates…
There was a surprising reply as to that the evisa process is actually done by the outsourcing service providers themselves, so it is not something that goes out of the market share of the companies… And the margins in the evisa processing , if comes to become the mainstay, can be even better…

Disclaimer… invested and averaging