FY17 topline to be in range of Rs 3800-4000 crore: Vakrangee

A: The same pace is continuing for the last seven-eight quarters. Therefore, we expect the same in the future also

Anuj: Could you give us some earnings per share (EPS) target from FY17 to FY20?

A: The current year's profit after tax (PAT) margin is 13 percent as against 12.3 percent margin corresponding quarter. In the current year we are expecting Rs 3,800 crore to Rs 4,000 crore of topline.

Latha: Will your expansion plans henceforth be bigger because we have got a bunch of finance companies now coming in. Will that take away business from you or will it give business because these guys come with a lot of microfinance and therefore a very big outreach. How is this competition going to impact you?

A: My business model is totally different. We have Vakrangee Kendras - that is an outlet of 200 square feet in every gram panchayat or in the urban area or in every unserved area. There are a lot of services; government services are provided, banking facilities are provided there, insurance sector is there and all type of e-commerce services are there. So this is a totally different model.

Latha: Suppose there are payment banks and there is unified payment interface (UPI). Is that competition for you or does that actually increase your business because you will be doing the delivery?

A: I am supplementing that because nobody is there in the last mile thing.

Sonia: You were telling us about Vakrangee Kendras. Can you tell us what the expansion plan is by the end of FY17 how many Kendras will be there and by the end of FY18, how many and from this Rs 4,000 crore of topline that you have guided for, for the full year, how much of it will come from the Vakrangee Kendras?

A: Right now we are having 21,820 outlets. We are planning for 35,000 outlets by March '17 and we have targeted 75,000 outlets by March 2020. So current year's 60 percent revenue is coming from Vakrangee Kendras, 40 percent revenue is coming from the e-governance business. By 2020, 100 percent business will come from Vakrangee Kendras.

Sonia: What would that do to your margins then because currently you are sitting at margins of around 24 percent? Once the percentage of Vakrangee Kendras increases, what would that do to your margins?

A: The EBITDA margin will come down because there is asset like model, there is a franchise model. The sharing is about 80:20 percent; 80 percent goes to the franchise, so my share is only 20 percent. So going forward EBITDA margin cannot be more than 20 percent but PAT margin will increase and in absolute terms PAT will increase drastically. However, we are concerned with PAT and EPS, so that will increase drastically.