At BLS International our long-term target is to grow revenues in a sustainable way. Toachieve this we need to implement business strategies including but not limited toadaptation to the global market environment mergers acquisitions and new servicedevelopments. Many of us would believe that this comprises the delivery of business tobusiness outsourcing services however this extends beyond business-to-business: itextends to the outsourcing of services between governments to consumers.
We need to seed new businesses even as we grow our existing ones. We need to use ourrevenues from business initiatives launched in the preceding three years to periodicallyrejuvenate our Company. This represents the robust framework around which we expect togrow our business for the benefit of all our shareholders.
At BLS we possess clarity on how to translate this intention into action. Theprincipal approach to grow our business will come from our organic extension intocontiguous business spaces where we leverage our competence create a first-mover'spresence carve out mind share deepen competence and retain our category leadership. Thesecond BLS approach will comprise a prudent use of our war chest of resources in inorganicbusiness spaces fast-tracking our revenues and strengthening our business sustainability.
The third BLS growth driver will be our investment in startups. The global technologyenvironment comprises a range of exciting possibilities related to digitalisation lastmile penetration and enhanced service experience. Our prospective growth will beinfluenced by our capacity to invest in start-ups offering differentiatedservice-enhancing capabilities enhancing our respect as a forward-looking player at thecutting-edge of global developments.
The Company generated a flavor of this projected growth during the last financial year.The Company reported a revenue growth of 6.72% to Rs. 846.39 cr and a profit after taxgrowth of
Eagle: Never surrenders to the size or strength of its prey; fights to win.
BLS: Competitive; focused on establishing markets and carving away market share. 8.94%to Rs. 105.17 cr in 2018-19. Even as the management was pleased with the Company'ssustained growth the performance could have been better. Some accounts that were expectedto fructify into contracts were delayed postponing revenues while other projects werecalled off. The accounts that did materialise encountered initial challenges and theseprojects could not be scaled by the end of the financial year under review. During thisperiod the initial operational expenses were absorbed and will only be progressivelyrecovered.
The Company reported attractive client wins and impressive progress of its existingprojects during the year under review validating our superior value proposition. Webelieve that the full impact of these initiatives will reflect in our performance acrossthe foreseeable future.
The Company was awarded the project to represent the Italian mission in Singapore in2018-19 a prestigious engagement for a tourism-driven European economy in one of the mostdemanding service-driven countries. The contract also opened up possibilities of thismission engaging us for services in other countries. The contract reinforced the BLS brandas a service-driven vendor among
Schengen countries with the possibilities of carving out a large EU wallet share. TheCompany was awarded another prestigious project to represent France in Jordan startingNovember 2018. The contract represented a new dimension for the Company as it accountedfor a new vertical comprising call center-driven appointment booking. Besides the accountvalidated the Company's capabilities in opening up an account for a prominent Schengencountry with possibilities of progressive widening across other service interventions andscaling the mission's penetration across more countries. The multi-lingual service offeredby the Company (Arabic English and French) deepened the Company's brand as aclient-committed vendor providing the highest value proposition for a large market ofinternational missions yet to outsource their call center engagement.
The Company reported an attractive project win comprising the renewal of theattestation project given out by the Ministry of External Affairs. The contract renewalmarked the Company's competitiveness in strengthening its overall service package. TheCompany's contracts with 12 Indian missions were extended during the course of the year.
Punjab e-governance project
I am pleased to state that the Punjab e-governance project was re-started by the newPunjab government during the course of the year under review. The resigning validated theCompany's superior value proposition for the benefit of the citizen state and country.The project was resigned for a period of five years starting July 2018. The range ofcitizen supports being offered by the Company was widened from 168 to 254.
At BLS we have always believed that superior cash flows represent the health of ourcompetitiveness. The other positive development related to the Punjab e-governance projectwas that the Company successfully drew down its receivables from a peak of Rs. 212 cr inthe last few years to Rs. 118 cr by the close of the year under review.
Prospects for 2019-20
The Company intends to strengthen its business through various initiatives during thecurrent financial year.
Principally the Company will continue to review its human productivity through directinitiatives as well as progressive technology investments that help moderate costs andturnaround speed.
The Company intends to scale the business introduced during the year under review; theB2G business is still at a nascent stage and will need to be scaled. The Company intendsto leverage the deep learnings and credentials derived from its Punjab e-governanceproject and provide a similar service in other countries impressing upon that this is anidea whose time has come.
The Company intends to enter the Residence Permit vertical especially in un-addressedmarkets where its value proposition comprises collecting fees from residents (as opposedto the government).
The Company intends to extend to the e-visa space which represents the future. Itpossesses a deep understanding of the space possesses a functional e-visa portal and itse-visa platform comprises the entire complement of related services (visa processing visaguidelines of the customer country payments call center and service customization).
The Company will continue to stay responsive to evolving market realities through thecross-sale and up-sale of service offerings enhance wallet share of the customer'sspending seed the business with revenues from nascent businesses broadbase the Company'srevenues away from an excessive concentration on select businesses and rejuvenate theCompany's revenues.
The Company intends to increase technology investments that enhance the consumerexperience and strengthen our brand.
BLS International is attractively placed to grow its business.
As some contracts mature and come up for an extension followed by re-tendering webelieve we possess the credentials to grow those businesses based on our enhancedexperience of the domain and customer reality.
Besides a number of our businesses are taking off which should strengthen ourtraction during the current financial year.
We believe that a combination of these realities should enhance revenues and surplusesduring the current financial year enhancing value for all our stakeholders.
With this my friends I wish BLS International all the best for its endeavors since myterm as its
Managing Director has ended. It was a pleasure serving you all.
Nikhil Gupta Managing Director