I would say monopoly and not moat. For example they have refused to return amount for failed transactions. Monopoly gives you unlimited power over consumers. With power comes responsibility which is completely missing.
The point I am trying to make here is when govt decides to end the monopoly for whatever reason, it does not end well.
We all know what happened to MTNL.
There is a terminal value risk with companies who are misusing their monopoly.
For that kind of complaint there is consumer courts ..no ?
Also, the visa issuing authority provides the contracts to BLS which they have to win by Tender method. Indian gov does not control this mechanism directly .If an Indian citizen wants to visit france , its France who issues visa and is using BLS as a service provider and gives the contract . BLS is not dependent on Indian gov that much for Indian visa either since VFS and others already get to bid for those tenders .
Ofcourse, BLS may lose contracts if the service is too lousy or too problematic for visitors..but one would guess that they know just how much they can get away with as does their competitors .
@nav_1996 the site you posted shows this. please dont post links which can cause issues.
Today. Protean’s news shows B2G risk. That is the reason I mentioned that terminal value is at risk when monopoly is granted by govt and service is poor and customers are desperately waiting for an alternative.
The company’s listed subsidiary BLS E-Services has posted very good results in last quarter
Disclosure: Invested.
I think the company has tie up with other country Gov also so there is no concentration of revenue from India Gov. As per concall, Management is good and also they think about it and act accordingly.
Nuvama’s note on BLS.
The gist:
" BLSIN delivered a solid performance in Q4FY25, exceeding our estimates and achieving its highest-ever quarterly revenue. The outlook for coming quarters appears encouraging due to i) seasonal strength in visa processing volumes and ii) the transition of high-potential geographies from partner-led to self-owned models. Expansion in the visa and consular business is expected to aid margin recovery from a base of Q4FY25. Visa contract wins and expansion of the digital services platform can enhance profitability. The management’s track record of successful strategic acquisitions has expanded its addressable market and strengthened its service offerings. Given its outperformance in Q4FY25 earnings and steady growth momentum guidance, we leave unchanged our estimates and maintain ‘BUY’ with a SoTP-based TP of INR637."
BLS International_Nuvama.pdf (2.1 MB)
Business Line, 02-Jul-25. Link.
Global visa outsourcing market
Outsourced visa market
Global visa market
Tourist visa segment: 70% by 2029.
Other segments – study visa, business visa and work visa – expected to shrink.
BLS confident of sustaining a 20–30% pa growth in the coming quarters.
Business model is resilient:
Relatively insulated from broader economic cycles and geopolitical headwinds (Disagree. Will be impacted by geopolitics).
Pre COVID-19 profitability - ₹100 crores.
FY24 - ₹350 crores of net profit.
FY25 - ₹539.6 crore.
₹1,000 crore net cash on books
Pursuing both organic (tech and AI) and inorganic (M&A) growth.
Despite of a good business model and attractive valuation the company is not finding significant institutional buyers.
The growing trend of offering visa on arrival won’t have an impact on it’s business?
https://www.bajajfinserv.in/insurance/visa-on-arrival-for-indians
To elaborate your last line and sync with concall abstracts Page 8 of 15:
Question: we are holding some INR 900-odd crores of cash in our balance sheet. And we have done pretty decent acquisitions in FY '25. So what are our plans of utilizing this cash going forward? How we are planning for that?
Answer: See, if you see last year, we’ve done INR 1,000 crores plus acquisition and we’re also a dividend paying company. This year also we have paid 100% dividend on the face value we have announced. So I mean, this is a cash-generating company. It’s a negative working capital
business.
And as we grow, we generate more amount of cash. We are seeing effective ways of
utilization. Acquisition was one. Dividends we’ve been paying. We are investing on different resources, growth of the company, getting good quality people, spending some on technology,capex, etc. So going forward, I think the growth that we foresee in terms of new contracts coming in, etc.,
some cash will be utilized in that. We are reinvesting in improving our offices, technology, etc. And also, we are again open once the acquisitions that we have done, the synergies properly kick in, we are open to more acquisitions in the future as well.
