BLS International analysis

BLS International (BLS) is a specialist provider for outsourcing of visa, passport and attestation services across the globe. BLS International serves the Diplomatic Missions by managing all administrative and non-judgmental tasks related to the entire life cycle of a visa application process, Visa/passport application processing is a niche area with only few  players globally (VFS Global, Cox & Kings Global and TLS contract). BLS is the only Indian player and 2nd largest globally after VFS . BLS International (BLS) which was earlier listed in Delhi Stock Exchange and was listed on NSE in June 2016. 

About BLS International

BLS International secured its first visa application processing order from the Portuguese Embassy in Delhi in 2005. This was followed by orders from the Embassies of Greece, Austria & Belgium in New Delhi in the year 2006. Today BLS International works with Governments of nine countries and its operations are spread out in 48 countries across the globe. BLS International has emerged as a strong player to provide visa and passport processing services to various Indian and foreign missions. BLS manages all administrative and non-judgmental work related to the entire life cycle of a visa application process. It also helps in scheduling interviews for some missions. BLS is also an authorized Service Provider for attestation of documents by the Ministry of External Affairs, India. It also serves the Embassy of the State of Kuwait and High Commission of Malaysia and several others in the field of Visa/Attestation of Documents/Apostille in India.

Services Offered  by BLS International can be grouped as:

  • Visa 
  • Passport
  • Consular Services
  • Attestation & Biometric Services
  • E-Governance Services

In the year 2015-16 BLS International processed about 1.5 million applications (Passport  / Visa only)  in FY16 the share of passport/visa/other applications was which 27, 64 and 9% respectively.Its operational performance is depicted below

BLS InternationalThe realization per application has been steadily rising.. Recent large size order from spain is likely to substantially increase the number of applications processed annually.
BLS International: Key Takeaways ; Spain Order

BLS International recently bagged  exclusive worldwide contract from Ministry of Foreign Affairs and Cooperation (MAEC), Spain worth around Rs 1300 crore for Visa Processing. The key takeaways if the order are :

BLS International order spain

With this agreement, BLS International will open almost 100 global consulate offices in over 38 countries for exclusively processing Spanish Visas globally. The company expects to process about 1.8 million applications every year. As per statement by ED of the company, the order from Spain comes with a margin of around 33 percent. Of the total 100+ centers, , 53 Spanish Visa Application Centers (VACs) will get operational in December 2016.

BLS International: Other Orders

Earlier BLS International had won a five-year Punjab e-Governance project for providing 223 citizen services through 2,147 centers (Seva Kendras) in Punjab. .arge & unique e-Governance project in India.All government services to be provided through a single window system BLS will be delivering more than 223 services which come under Right To Services Act. The 2147 Sewa Kendras Sewa Kendras are to be strategically located within 2.5 kilometers distance from one another. BLS will collect government fee and service charges upfront. The Physical & IT infrastructure for this is to be provided by Punjab Sate e-Governance Society (PSeGS) and manpower to be supplied by BLS.

BLS International: Financials
Quartery Results     Rs. Crore
 Dec-16Sep-16Jun-16Mar-16Dec-15Sep-15
Sales162.8153.57124.2113.89146.91137.15
Total Income163.37154.14125.2112.52147.12137.8
Expenses134.71141.16116.56108.85132.9127.85
PBIDT28.6612.988.643.6714.229.95
Interest2.190.710.07-0.340.020.18
PBDT26.4712.278.574.0114.29.77
Depreciation5.542.341.331.291.441.42
PBIDT20.939.937.242.7212.768.35
Tax4.270.910-0.21-0.030.58
Profit After Tax16.669.027.242.9312.797.77
Equity10.2510.2510.2510.2510.2510.25
Face Value101010101010
EPS (not annualized)16.258.87.062.8612.487.58
PBIDTM(%)17.60%8.45%6.96%3.22%9.68%7.25%
PATM(%)10.23%5.87%5.83%2.57%8.71%5.67%
EPS (TTM)34.97     
Market Price1775     
PE (TTM)50.76     
Sales yoy11%12%    
Sales qoq6.00%24.00%    
NP yoy30%16%    
NP qoq85.00%25.00%    

Annual Results (in Rs. Cr.)
 20162015
Net Sales504.96450.02
Total Income505.46450.4
Op Profit38.1630.77
Interest1.271.74
Gross Profit36.8929.03
Depreciation5.535.11
PBT24.3325.33
Tax0.80.58
DefTax-0.34-0.24
Net Profit30.9123.58
Equity10.2510.25
Reserves108.573.25
Networth118.7583.5
Face Value1010
EPS 30.1623.00
Book Value 115.8581.46
Market price1675 
RONW (%)6.12%5.24%
PE55.54 
CAGR  sales 1 yr12.21% 
CAGR NP 1 yr31.09% 

Assessment

  • Visa/passport application processing is a niche area and BLS International has emerged as No. 2 player globally in this field next only to VFS Global.
  • BLS International aims to become number 1 G-to-C Service Provider in the world partnering with Governments across the globe & appears to be on right track after winning larger orders for Visa services from Spain and e-governance order from Punjab Government
  • BLS works with 23 Indian missions and 8 Foreign missions and is all set to cover more  Foreign missions. Offices in Foreign markets contribute both in terms of revenue and yields.
  • Many tenders for  foreign mission tenders are likely to come and since  BLS is eligible to bid for these tenders, its is likely to secure more business.
  • BLS International has bagged a large e-governance order in Punjab. The performance of many companies in this space in the past has been mixed. However BLS has strong experience in this area and could earn good profit as per its projections. It cannot be said if a Govt change in Punjab will have a bearing on the project. The project is otherwise complelety rolled out and should contribute 200+ crores  to company’s revenie in this year.
  • BLS has potential to emerge as a strong player in G2C space and company seems to be gearing up fast towards that end
  • Passport / Visa processing is a specialized area with few players and BLS International has been strenthening its position in this segment with a good mix of orders from Indian Embassies & foreign ones.
  • BLS International entry into e-governance when Digital India is a focus for the Government bodes well for the company
  • The exclusive global agreement with Spanish Government bears testimony to company’s string position in this sector and is expected to expand its global footprint and add to overall profitability of the company.
  • International travel is expected to grow at a faster rate, providing more visa/passport opportunities for BLS International. Valuations are not cheap at a PE of 50 but company has build a strong edifice and growth in profits in a non liner manner cannot be ruled out.
Standard disclaimer:  I am not a SEBI registered analyst. I may have vested interest in every stock I discuss. Please do your own due diligence as stock market investments have high degree of inherent risk. While I have made lot of efforts to collect correct information, same may be rechecked by individuals while investing.