BLS International Services Ltd

- BLS International Services has filed a Draft Red Herring Prospectus (DRHP) with SEBI for an IPO of its subsidiary, BLS E-Services, aimed at raising growth capital for expanding the digital business in India and globally. - The company has not given specific growth guidance or percentage targets for FY25 but intends to maintain current growth momentum. - They hold strong cash reserves (~700 crores) and are looking at effective utilization for growth, including new acquisitions and setting up new offices, which may require funding. - No explicit mention of new debt fundraising; interest costs relate to accounting standards on leases, not increased borrowings. - Any capital raised via IPO will be used to fuel business expansion, acquisitions, and technological advancement. - No confirmed plans yet for new equity or debt beyond the IPO filing and organic/inorganic growth strategies.

- Current CAPEX additions approximately ₹24-25 crores in H1 FY24, mainly due to leased assets as per accounting standards. - Normal operational CAPEX steady at around ₹15-20 crores annually, expected to continue in FY25. - The company is considering strategic use of ₹700 crores cash reserves for acquisitions and setting up new offices to support growth. - Focus on bidding for large contracts requires potential funding for new office setups. - Plans for acquisitions in related fields are actively being evaluated to drive growth. - Funds raised through the proposed IPO of BLS E-Services will be utilized for growth capital to expand digital business domestically and globally after SEBI approval. Overall, BLS International is pursuing both organic and inorganic growth with steady operational CAPEX and strategic investments funded through IPO proceeds and cash reserves.

- BLS International expects sustained growth momentum in both Visa & Consular Services and Digital Service businesses over the next few years. - Visa volumes are projected to recover to 75-80% of FY19 levels in FY24, improved from 65-70% last year, driven by China reopening and initial stages in Russia. - Digital services currently represent ~21% of revenue, with plans for significant growth organically and through acquisitions, aiming to increase this share further in the coming years. - The company is actively bidding for new Visa contracts globally, including Europe, and pursuing inorganic growth opportunities. - Management aims to maintain or improve the current EBITDA margin levels, which have expanded significantly (around 20% now versus 15-16% previously). - New contracts and acquisitions are expected to add to revenue growth going forward. - The overall outlook is optimistic for steady revenue growth in both segments.

- BLS International aims to sustain the current EBITDA margin of around 20% seen in FY24, improved from the previous 15-16%, indicating strong operating profitability going forward. - The Company expects continued revenue growth driven by both Visa & Consular Services and Digital Services segments, with the digital business growing faster and aiming for increased contribution to overall revenue. - Management highlighted a 14.3% revenue growth in Q2 FY24 and 25.6% growth in H1 FY24, expressing optimism about sustaining similar or higher growth rates in coming quarters and years. - Earnings per share improved significantly to Rs. 3.59 in Q2 FY24 from Rs. 2.46 in Q2 FY23, reflecting strong PAT growth of over 60%. - Future earnings growth is expected to be supported by new government contracts, inorganic growth through acquisitions, expansion in global markets, and increased volumes post-COVID recovery. - No explicit numerical guidance provided, but the company targets maintaining and improving current profitability and growth momentum.

- BLS International continues to actively bid for multiple Visa service tenders globally, including recent wins in Slovakia, Germany, Italy, Poland, Portugal, and contract renewals like Spain. - The company has a strong and sizable tender pipeline but only a portion results in wins; results of some tenders are pending announcement. - Digital services growth is supported by new contracts and inorganic growth plans, including a planned IPO for the digital subsidiary to raise growth capital. - No specific quantitative orderbook or pending order values were disclosed in the call. - Management emphasized ongoing efforts to maintain and grow the order pipeline to sustain revenue and EBITDA momentum in both Visa and Digital service segments.