Vakrangee

This e-Governance related service provider has done well for Q1Fy15, with a robust topline and a tax credit, which together helped the company post a 130% (YoY) higher net profit at Rs.76 crore. The higher operating expense and 73% drop in other income was negated by the tax credit. The company recorded an almost doubled up net revenue at Rs.666 crore, up from Rs.334 crore in previous Q1. Tax credit was to the tune of Rs.18 crore; in previous Q1 too, the company had a credit but that was lower at Rs.8 crore. Interest cost is at Rs.20 crore v/s Rs.22 crore in Q1FY14.

Almost all major e-governance projects, Vakrangee has handled successfully, partnering with PSU and private banks, central and state Govts. It is an important link for setting up some 50,000 odd Ultra Small Bank Branches for PSU banks, through the ‘One Bank- One Panchayat’ model. It has also received license from RBI for setting up minimum of 15,000 ATMs across the country in next three years, which is the White Label ATM business. In the coming days, one could see the company trying to raise Rs.500-600 crore through sale of shares, up to 9% stake, to institutional investors after talks with PE funds failed on valuation grounds.  Promoters currently hold 38.77% stake.