Nikhil Gupta,
Managing Director
Overview
Over the last few years, the Company has emphasised that while it was good to grow in
the moment, the challenge lay in being able to do so in a sustainable manner.
In my message to shareholders last year, I quoted Ingvar Kamprad, the founder of IKEA,
saying: ‘The most dangerous poison is the feeling of achievement. The antidote is to
every evening think what can be done better tomorrow.' I am pleased that this commitment
to perpetual out-performance was validated during the last financial year. The Company
continued to witness growth in operating profits as well as profit after tax, and in doing
so, it posted a record performance. More importantly, the Company did not just address the
needs of the moment but created a foundation for sustainable growth.
The result is that we have virtually reinvented ourselves in the last three years as
one of the leading global providers of tech-enabled services for governments and citizens,
after we encountered an existential crisis following the pandemic outbreak. Our Revenues
increased to Rs. 1,676.8 Crore during the last financial year from Rs. 786 Crore in FY
2019-20 before the pandemic impact). Meanwhile, Profit After Tax strengthened to Rs. 325.6
Crore from Rs. 52 Crore in FY 2019-20. During the last four years, we made two
acquisitions and took one of our subsidiaries public, which contributed quite positively
to our operations. This contrarian growth at BLS International validates the following
points.
One, the management is deeply convinced about the long-term relevance of the
government service outsourcing business and is willing to deepen investments.
Two, the management is convinced that this is not a fleeting arbitrage; it
represents a structural multi-decade shift.
Third, the Company is strengthening its operating platform through aggressive
surplus reinvestment, manifested in two value-accretive acquisitions, even as it is
scaling its business organically.
Fourth, the Company is service-driven, reflected in its repeat engagement for visa
processing services by some of the most tourism-committed nations. Fifth, the
Company leveraged its competence in one area of government outsourcing and entered
another, indicating its competence in identifying opportunities and backing its judgement
to extend into another. Sixth, the Company did not just extend into an adjacent
business; it scaled this business, strengthened it, and listed it on the Indian Stock
Exchanges. This indicates the Company's competence in taking an idea from concept to
scale. The Company successfully completed the IPO for BLS E- Services Limited (subsidiary
company), raising over Rs. 300 Crore to fuel its continued growth.
Optimism
At BLS International, we are optimistic of the direction of both of our businesses.
Visa processing and consular business: In 2023, the tourism sector contributed 9.1%
to the global GDP, a 23% increase over 2022 but still 4.1% below the 2019 level (source:
www. wttc.org). We are optimistic that the global tourism industry will grow at a
compounded annual growth rate of 5.5% between 2024 and 2032, reaching a value of USD 18.44
Trillion by 2032. Global traveler crossflows are catalysing this growth, increasing the
tourism orientation of economies, raising disposable incomes, emergence of tourism
destinations, simplifying visa processes as well as education and healthcare services.
In 2023, the tourism sector contributed 9.1% to the global GDP, a 23% increase over
2022. We believe this growth momentum to positively impact the Visa & Consular
Services segment.
Digital services business: Global governments are committed to promoting
e-governance and digital transformation as a part of their national agenda. International
agreements and partnerships like the United Nations' Sustainable Development Goals (SDGs)
often include targets related to e-governance and digital inclusion, prompting governments
to invest in these areas. The global e-governance market is projected to reach USD 50.36
Billion by 2032, growing at a CAGR of 4.6% between 2024 and 2032.(Source: www.medium.com)
We see an external reality that is making this business increasingly relevant. Governments
and private institutions are increasingly outsourcing services to access expertise at
competitive costs. In India, e-governance initiatives (Digital India, National Portal of
India, Prime Minister of India portal, Aadhaar, online tax filing and payment, digital
land management systems, and common entrance tests) are deepening their presence in our
everyday lives. Financial institutions have been asked to implement Financial Inclusion
Plans as a systematic approach.
These plans measure their progress based on factors like the number of branches and
business correspondents (BCs). These BCs comprise retail agents employed by banks to offer
services at locations other than a bank branch or ATM; they provide services like small
savings accounts, remittances, micro-insurance/pensions, debt recovery, and direct
subsidies to citizens. By providing business correspondent services, we are taking social
inclusion and rural prosperity ahead, emerging as integral to national progress. Besides,
digital intermediation is still in its early stages in India, with a growing number of
engagements transitioning from manual to digital processes. Our extensive experience with
millions of customer engagements sets us apart and provides a robust reference base for
new customers. Even as we are early entrants in this nascent sector, we have deepened core
competencies and created a competitive advantage.
Sustained momentum
During the last financial year, we strengthened our business platform through an
acquisition that will increase our global market share. Through our wholly owned
subsidiary BLS International FZE, UAE, we signed a definitive agreement to acquire a 100%
stake in iDATA, a Turkey-based visa and consular services provider. In July 2024, we
concluded this acquisition and initiated iDATA's integration into our system. iDATA is a
Turkey-based Visa & Consular service provider and manages over 37 Visa Application
Centres (VAC) across 15+ countries. We believe this move will significantly enhance our
business and extend our reach across additional geographies. This acquisition will
reinforce our position as one of the largest and leading international players in the
space of visa processing & consular services and further strengthen our market share,
narrowing the gap between the world's largest and our Company.
ESG, CSR & HSE
At BLS International, we pride ourselves as a leading provider of visa and passport
outsourcing and technology-enabled services for various diplomatic missions, high
commissions, and governments worldwide. We consciously uphold the highest standards of
governance and compliance with all government regulations. Our comprehensive compliance
framework and integrated governance structure emphasise a strong commitment to global
Environmental, Social, and Governance (ESG) disclosure standards, promoting transparency
and accountability.
As a global service provider, we prioritise sustainability and environmental protection
across all our operational locations. Certified under ‘ISO 14001:2015 - Environmental
Management Systems,' we focus on reducing our environmental footprint through waste
management, energy efficiency, and water conservation. Our CSR initiatives have enabled us
to positively impact the lives of individuals in the weaker sections of society,
particularly through projects aimed at women's empowerment. Our CSR spending on reputable
NGOs dedicated to women's empowerment increased by 17%, from Rs. 47 Lakhs in FY 2022-23 to
Rs. 55 Lakhs in FY 2023-24.
BLS International is deeply committed to the health, safety, and well-being of our
stakeholders, including customers, employees, communities, and society. We recognise the
importance of making a positive impact in healthcare, education, sustainability, and
women's empowerment. During the reporting period, we implemented several initiatives to
enhance our HSE performance, including specialised training and wellness programs for
employees, which significantly reduced workplace stress and absenteeism.
We established comprehensive policies and practices on HSE, including risk assessments,
emergency response plans, regular facility inspections, and a robust employee wellness
program. We ensure HSE compliances are met across all locations and developed policies
aligned with our Sustainability Strategy Framework. This strategic alignment addresses and
resolves sustainability issues identified through assessments, ensuring our policies adapt
to our evolving sustainability goals. References to different policies are provided
throughout our Business Responsibility and Sustainability Report annexed in the Annual
Report.
Employee Engagement
The company invests in people development and promotes a culture of growth from within.
Many of our leaders have risen into their roles various development opportunities.
Further, we provide our employees regular feedback, in-line with our philosophy of
high-performance to help them achieve organizational goals.
Conclusion
Looking ahead, we are confident of the future that awaits us. We are positioned to
capitalise on emerging opportunities, and our strong foundation will continue to drive
sustainable growth, reinvestment, and expansion.
I express my appreciation to our shareholders, employees, clients, customers, and
partners for their dedication, trust, and collaboration. Together, we have built a robust
business, poised for sustainable success.
I must thank you for your belief in BLS International. I am confident that the year
ahead will be even better, and I look forward to celebrating our accomplishments together.
| Nikhil Gupta |
| Managing Director |