Ladies and gentlemen, good day and welcome to BLS International Services Limited Q1 FY25 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on a touch-tone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Gaurav Chugh from BLS International Services Limited. Thank you, and over to you, Mr. Gaurav.
Thank you so much. Very good afternoon, everyone, and thank you for joining the Q1 FY25 earnings call of BLS International Services Limited. To discuss the operational and financial performance of the company, we have with us on the call today Mr. Nikhil Gupta, our Managing Director, Mr. Shikhar Aggarwal, our Joint Managing Director, Mr. Amit Sudhakar, our Chief Financial Officer, and Mr. Loknath Panda, Chief Operating Officer of our Digital Business. The company's investor presentation and press release has already been uploaded on the stock exchanges as well as on the company's website, and we hope you all had an opportunity to go through the same. Let me remind you that this discussion may contain forward-looking statements that may involve known or unknown risks, certainties, and other factors.
It may be viewed in conjunction with our business risks that could cause future results, performance, or achievements to differ significantly from what is expressed or implied by such forward-looking statements. I would like to hand over the call to Shikhar Aggarwal for his opening remarks, post which Mr. Amit Sudhakar will discuss the financial performance, and then we will open the floor for an interactive Q&A session. Thank you, and over to you, Shikhar.
Thank you. Thank you all for joining BLS International's Q1 FY25 earnings call today. We trust you had the opportunity to have a look at our results, press release, and the investor presentation, which are available on both the stock exchanges and our company's website. I'm delighted to share with you that we have commenced the financial year 2025 by achieving some significant milestones. Firstly, we have crossed the INR 500 crores in terms of consolidated total income in a quarter. Our total income in Q1 FY25 was INR 510 crores, which is a growth of 31% from the same quarter last year. This was also the quarter with the highest ever quarterly profits. We have delivered a profit after tax of INR 121 crores, which is a remarkable 70% year-on-year growth. I would also like to take a moment to point out some interesting facts.
If you look at our numbers a few years back, in FY21, we did a revenue from operations of INR 478 crores in the full financial year, which is lower than the revenue of INR 493 crores, which we recorded just in this quarter itself, just Q1 FY25. And this is just not for the revenue. It is also for other key financial parameters like operating EBITDA, PAT. I feel this is a testament to our focus on sustainable growth. Now, coming back to this quarter, our revenues from operations during the quarter have reported a strong growth of 28% year-on-year. The growth has been largely driven by growth in our visa consular segment, which has witnessed an increase in volumes, going from 18% from the corresponding quarter. The volume growth has been due to growth in commencement of new contracts as well as growth from our existing contracts.
Our enhanced penetration in target markets and strong industry tailwinds from global travel and tourism during the quarter have also contributed positively to our growth. As we have been mentioning about the transition in our business model from partnered model to self-run model, over the last few quarters, we have been successful in this transition, and we are now starting to see results in expansion of the margins. We are hopeful to see further positive outcomes from this strategic move in the future. Another milestone that we have achieved is the recently completed iDATA acquisition. We have successfully completed the 100% acquisition of iDATA, a leading Turkey-based visa counselor service player. The integration of iDATA's business operation with BLS, it further solidifies our presence in the European geography.
We will start seeing the consolidation of this acquisition from Q2 onwards, and we are also exploring further synergies, which will further help to optimize our operations. Our digital service business continues to witness good traction, while the revenues in Q1 FY25 were at similar levels as compared to Q1 FY24. We continue to deliver a good performance in terms of profitability. Our continuous focus has led to an increase in margins and operational efficiencies, which has enabled us higher profitability in this quarter. We continue to witness growth in this segment with the addition of new banks and CSPs during the quarter. As of 30 June 2024, we had 27,000+ CSPs and more than 100,000 touchpoints. In this quarter, the BC business has seen over 3.5 crore transactions with gross transaction value of around INR 20,000 crore.
Further, in line with our commitment to promote financial inclusion and digital empowerment, we signed a definitive SPA to acquire 55% controlling stake in Aadifidelis Solution s and its affiliates, which is one of the largest loan distribution and processing companies in India with pan-India presence. Its network of 8,600+ channel partners enables Aadifidelis Solution s to facilitate an average monthly loan disbursement of more than INR 1,500 crore. The acquisition is expected to close in Q2 and will align with our company's portfolio of business-centric BC last-mile banking delivery and provide ample cross-selling opportunities. To conclude, with increased business confidence and travelers facilitating measures and rising air capacity and connectivity across the globe, we anticipate significant boosts to the international tourism and corresponding demand of these applications. We are witnessing a positive momentum and are optimistic about sustaining growth in the future.
We also are resilient in our belief that our strategic growth initiatives and acquisitions will generate substantial long-term value for our stakeholders. Meanwhile, we will continue to focus on our inorganic growth initiatives, wherein we would be targeting synergistic tech-enabled businesses. Now, I'll turn over the call to Mr. Amit Sudhakar, our CFO, for further updates on financial performance. Thank you.
Thank you, Shikhar. Good afternoon, everyone. I'm pleased to present the consolidated financial performance for the first quarter ended June 30, 2024. Our consolidated revenue from operations increased by 28.5% to INR 492.7 crores from INR 383.5 crores in Q1 FY24, largely driven by growth in visa and consular business. The EBITDA surged by 66% to INR 133.2 crores, compared to INR 80.1 crores in Q1 FY24. EBITDA margin improved to 27% in Q1 FY25, up from 21% in Q1 FY24, showing a significant expansion of 615 basis points. PAT in Q1 FY25 witnessed a robust growth of 70% to reach INR 120.8 crores, compared to INR 71 crores in Q1 FY24, with a margin improvement of 600 basis points to 24.5% in Q1 FY25.
Now, moving to the segmental highlights, revenue from visa and consular services experienced a strong growth of 36% to register INR 414 crores in Q1 FY25, up from INR 304.8 crores in Q1 FY24. EBITDA grew by a robust 71% YOY to INR 121.3 crores in Q1 FY25, with a margin of 29%, which expanded by 600 basis points as compared to 23% in Q1 FY24. The margins have witnessed an expansion due to higher volumes, transition to a new business model, as well as our efforts to bring in operational efficiency in our businesses. The number of visa applications processed during the quarter has risen by 18% from 721,000 applications in Q1 FY24 to 850,000 applications in Q1 FY25. We have also announced the completion of iDATA acquisition recently for a consideration of INR 720 crores.
This is a large milestone for the company, as we will witness the synergetic benefits from Q2 onwards. iDATA is a profitable company and recorded INR 246 crores revenue with INR 144 crores in EBITDA in calendar year 2023. Our digital business revenues stood at INR 78.5 crores in Q1 FY25, compared to INR 78.7 crores in Q1 FY24. The EBITDA surged by 31% YOY to INR 11.9 crores in Q1 FY25, against INR 9.1 crores in Q1 FY24. The EBITDA margins at 15.2% were up 358 basis points from 11.6% in Q1 FY24. The company continued to maintain a strong balance sheet with cash and cash equivalent of INR 1,209 crores as of 30 June 2024, and strong return ratios with ROE of 29% and ROCE of 32% on an annualized basis. With that, I will request the moderator to open the floor for questions. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Nikhil Shetty from Nuvama Wealth. Please go ahead.
Hi sir, congrats on a strong set of numbers. My question is on margins. So we have witnessed substantial growth in the EBITDA margin in visa and consular business. And as I understand, the number of iDATA is yet to be added to the numbers. So what led to this growth? And I mean, how much of our partner-based centers are transitioned to the company-owned model? And I mean, what is the key reason behind the growth in the EBITDA margin in visa business?
Yes, thank you, Nikhil. So as you know, we grew 600 basis points in EBITDA margin level. Now we are standing at 27%-28% EBITDA margins from 21%. And there are, I think, a couple of factors for this growth. Definitely, if you see that in some countries, we have transitioned to our own model. I think four or five countries have already transitioned. More three, four, five countries are expected to transition. We have gotten an increase in service fee. We have one new contract at higher service charges. Even the existing contract that was re-tendered, we have one at higher service charges. So the service fee has increased. Also, there has been an increase in some conversions of different services across the world. So I think that is the reasons for increase in EBITDA margins. And yes, we have also seen a growth in revenue of 56%.
Volume of applications have also grown by 18%. I think those are some of the factors that have led to increase in EBITDA margins. We think that is sustainable, and it can grow further. Yes, acquisition of iDATA, the numbers will be added from second quarter.
Yeah, thank you. But just to get more clarity on EBITDA margins, so after integration of both the acquisitions, how much margin do you expect on a blended basis for FY25?
The exact number, we don't know, but definitely, we see a further upside in our margins. If you see, last year, we did 21%. The year before, we were at 15%-16%. Constantly, the EBITDA margins have been growing. Definitely, after this acquisition, we definitely feel that EBITDA margins can grow further.
Okay, sir. And lastly, sir, despite having INR 1,300 crore on a balance sheet, we are planning to raise INR 2,000 crore. I believe this is for acquisition as well. So is it fair to believe you have already identified the target company?
Well, Nikhil, first of all, this money is as of the INR 1,200 crore that we have on the books as of first quarter end. Post that, the acquisition of iDATA was done, so money was paid from that. Also, Aadifidelis loan solution that we've announced, we will be using this cash. So cash level definitely will be, in the short term, will be utilized in this acquisition. Obviously, in the next few months, years, we expect more cash to come into the company. But see, this was an enabling resolution that we passed in the board meeting because in the follow-up AGM, that will happen. We want this to take that up. But definitely, we are constantly looking at all growth opportunities of the company. Organically, we are looking at new contracts, newer geographies, and inorganically, these acquisitions.
So definitely, we are talking constantly to different outsourcing companies, not only in visa, but allied sector as well. So this was an enabling resolution, and that is why we passed it. But definitely, we have plans in the future, as in when the companies that we are talking to, one of them gets close, the bigger acquisitions, then we will be accordingly raising the funds.
Great, sir. Yeah, that's all from my side. Thank you, and all the best, sir.
Thank you, Nikhil. Thank you.
Thank you. The next question is from the line of Sandeep Agarwal from Narayani Investment. Please go ahead.
Yes, Mr. Agarwal, you did miracle in company. First, big well of congratulations. We are shareholders more than five years. So we knew this company throughout. We wish all the best to you and your employees. Sir, my question is, 55% controlling stake you bought for loan distribution. So it is for BLS or BLS E-Services?
Thank you, first of all. I think the entire team of BLS International is working hard to deliver good growth on a sustainable basis. So definitely, in the future also, we expect good growth coming in. BLS E-Services, this company has been bought the loan distribution business. It will be a subsidiary of BLS E-Services. 55% will be held by BLS E-Services.
Okay. Secondly, after 100% acquisition of iDATA, how much cash do we have? Or we raise some debt?
As of first quarter, we have given the numbers of INR 1,200 crores that we had end of first quarter. Post that, we have utilized certain cash in the acquisition of iDATA. I think we will get the exact numbers that we can find out.
After iDATA, you didn't want more. So what is next?
So see, as we've spoken, we are a mature company now, and we are focused on sustainable growth. And we see there are ample opportunities in the market. So as you know, we have been a conservative company utilizing our cash effectively. So accordingly, we are looking at multiple opportunities, both inorganically and organically. And we wish to do acquisitions that will be revenue-accretive, EPS-accretive, and will only focus on that. So definitely, we want to grow, but on a sustainable basis, we want to grow.
Thank you, Sandeep. The next question is from the line of Amit Chandra from HDFC Securities. Please go ahead.
Yes, sir, thanks for the opportunity. So my question is on the margin of transition. Obviously, we have seen the highest margin EBITDA .
Can you be a little louder? Sorry, we cannot hear you.
Just.
Can you hear me clear now?
Yeah, now it's clear.
Yeah, so on the margin expansion, obviously, the margin expansion has been pretty decent, and it has been the highest margin. So we said that transitioning from partner centers to self-managed centers has been the main reason. So if you can put some more light here in terms of how many centers we have in terms of self-owned and outsourced as of now. And as far as my understanding goes, shifting to the self-management also involves the CapEx. So you have to own these centers. So is it more turning towards more asset-heavy kind of a model?
So Amit, first of all, this is increase in margins. One of the reasons is a shift from partner and model to self-center. But there are multiple other factors. If you see, we have got increase in service charges from our existing client government.
New tenders, we have run at good higher service charges. There has been increase in different value-added service fee also, increase in conversion as well. So there are multiple factors that have led to an increase in margin, and that is sustainable. And the CapEx that pertains, I think Amit can add on that. Yeah. Amit, if you see, our depreciation and our employee costs have gone up compared to the last quarter. And mainly due to this that we have got people on our own payroll, as well as we have invested in new facilities, therefore the depreciation has also gone up. So it is reflecting in those rather than in our EBITDA directly. So the impact is coming to different heads, actually.
Okay, sir. So in terms of the INR 650 margin expansion that we had, how much we can attribute towards shift towards the CSP-owned centers and how much would be from the cost-saving measures and higher margin and the value-added service? You can give some breakup on that or some more color that would be helpful.
We don't have a specific, but you can see that the volume growth has been about 18%, whereas the revenue has grown at around 35%. So that shows the increase in the revenue that we have done that, which is impacting the EBITDA. On the other hand, if you take out the incremental employee costs and the depreciation, that will give you the net increase which has come from EBITDA margins.
Okay. We have also seen quite substantial increase in terms of the number of applications and also the revenue per application has been increasing. So in terms of the total applications, if you can provide how much has been from Indian and foreign centers or missions, what is driving this higher realization and higher volume growth? Is it some specific centers, specific countries, or is it a wide scale?
So see, this is coming from new contracts that we have won. In India, we do not more than 10% of the total revenue. 90% is all outside India. The growth is coming from India as well as from outside India in these numbers. It is on higher volumes from the existing centers as well as the new centers that we have opened for the new contracts that we have done over the last one year.
Okay. So all the contracts that we have won is already in the base. So from here, we can see the growth normalizing or there are some other contracts that we are getting and there is a possibility that this number can grow further because iDATA is coming, so it opens up a new market. So how do we see this in terms of number of applications?
I think if you see the volume, we have grown 18% in terms of the volume in first quarter. This obviously does not include the acquisition numbers. The numbers will grow further, but I think the opportunity in the market is among us. In terms of outsourced market itself, there are multiple tenders that are coming up for bidding. We are doing pilots. We have won some contracts. If you see the last one year, we have won multiple contracts with multiple governments. In the future also, we expect some market share to come in from that. Then there are non-outsourced markets also, which will continue to outsource more and more outsourcing will happen, more and more products will come. So definitely, we think that we can sustain the growth momentum.
No, sir, I just wanted to understand because last four quarters, the volume applications have been mostly constant. We have seen a jump in this quarter. So the growth is coming from existing contracts or is it totally from a new contract in this quarter?
Some growth is also coming from existing contracts. China is now back to pre-COVID level. But obviously, the majority of the growth is coming from newer contracts. As we have been talking that we have been winning newer contracts, deploying them. So volume growth has started to come in from those as well.
Okay. And in terms of the realization growth, obviously, it has been growing steadily. So BLS could be one of the reasons. But apart from that, is there a mixed change also a reason for the increase in applications and how this application will look like after iDATA integration?
Honestly, Amit, I'm sorry, but you were not very clear on the last question. I think we're talking about the volume of iDATA. So they do INR 650,000 or something odd applications annually.
No, no. I was talking about the net revenue per application that has been on an increasing trend. So how much of that is from the change in the mix of international versus domestic, and how much is from Value-Added Services? If you can provide some color on that. Also how the revenue per application is of iDATA?
So revenue per application of iDATA is higher than BLS because we are operating in specific geographies at higher service charges. But I think our revenue mix, Amit, is coming from outside India only. Because in India, we have a very limited revenue. I think maybe you can have a call with Amit and talk on Amit's question. Sure, sure.
Okay. Okay, sir. Thank you. And all the best.
Thank you.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Samir Palod from AUM Fund Advisors. Please go ahead.
Yeah, hi. Am I audible?
Yes, you are.
Thanks for the opportunity. Wonderful set of numbers. If you can just talk a little bit about cash flow, the EBITDA growth, and how much of that EBITDA has translated into cash flow from operations would be very helpful.
Yes, I think Amit's CFO will take this up. So if you see our numbers and the growth in cash flow, more or less the EBITDA will match with our incremental in the cash. If you see, we have given our quarterly cash balances. The increase, if you see, is more or less matches with the EBITDA that we have done. So because our businesses are all on cash basis, it reflects directly into our balances, cash balances. So if you see the cash balance has moved by INR 154 crore in this quarter, that is mainly. If you see, if you add the depreciation, it will be approximately coming to the same numbers around that.
Fair enough. If you can just talk a little bit about how you see the rest of the year going for your visa processing business, for your current business and for the acquisition business separately. Do you see further operating leverage in your margins going through the next three quarters?
So, we have been, if you see, in the last couple of quarters, past quarters, we have talked about this shift which we were doing from partnership model to our own, which we have completed, and the impact started coming from this quarter. And second, there has been a tailwind as far as the global travel is concerned, which is helping us in the volume of business in most of the centers. So, that growth, what we have done in this quarter, we feel that this momentum will continue for the current year. And over and above that, the acquisitions which we are in the pipeline, as they will add, and there will be a value-added exit from the day one, will add further to the top line as well as the margins.
In terms of sort of scale, in terms of what would be the growth, you think, in your base business as well as in the Turkey business?
So, see, we have done a growth in this quarter of about 18% in the volumes and overall about 35% on the revenue. We believe that will continue. The growth in the EBITDA should also be on the same line as for the existing business concerns. Once this acquisitions, additional EBITDA will be added to the same.
Okay. Thank you.
Thank you. The next question is from the line of Kevin Jain from PL Capital. Please go ahead.
Hey, hi, Shikhar and the entire team. Congratulations for these kinds of numbers.
Thank you. Thank you, Kevin.
One particular thing which I have noticed, which is not there in any of the Indian companies, for the first full financial year, March 2022, your entire consolidated profit was INR 111 crores. And this is a testimony that in the first single quarter of March 2025, you have done INR 120 crores, which is higher than the entire profit of financial year FY22. So that is kudos, kudos. Now, one fundamental question what I want to ask that you and your management have seen the evolution of VFS or any of the global majors, right? Now, they have also acquired several regional players. So if I were to ask that BLS is at which juncture or trajectory in terms of acquiring? Now, you have acquired iDATA, right? What is the pathway for next 5 to 6 years? And what has been the journey of VFS or any global equivalent major?
See, because your acquisition is one of the most relevant things, right? Because then you make a very strong pipe and a very strong funnel, and credentials helps to build on credentials. So can you throw some perspective on this, matching the trajectory of VFS? What are our renewed strengths as compared to VFS? That would be helpful.
See, Kevin, if you see in the last four years, we have grown 92% CAGR level at EBITDA. That was all organically done. Next few years also, if you divide the bucket of growth of BLS, our focus, first focus is on organic growth, how we can organically increase revenue from our existing contracts, get more outsourcing from our existing client governments, increase our geographical presence. Then second is how we can win more contracts from the competition, which are coming up for renewal, where we can win a certain market size share. If you see a lot of new governments which have never outsourced, like Philippines, Brazil, we recently won. More governments are now in the pipeline which are outsourcing for the first time. Some existing governments are outsourcing in the newer geographies for the first time. So first focus is on that. Then definitely acquisitions.
If you see, there are only a handful of players in this business globally, big players, and then a handful of regional players as well. We have acquired one of the sizable regional players, iDATA. Next few years also, the kind of cash that the company will throw, we are looking at constantly growing the company, both in visa outsourcing and allied government outsourcing services globally. We are looking at different acquisition opportunities, regional players also across the world that can be either successive economies of scale, help us enter into newer markets. We get our money back in a certain number of years. Definitely, we are looking at those kind of acquisitions and also allied visa outsourcing, allied field in government outsourcing, where there are good contracts being held by those companies.
Next few years, I think growth will come on all fronts, and I think that we can sustain the growth momentum. If you see our competitors, we have about 14, 15 new contracts in the last one and a half years, and most of it were from the competition. Some governments have outsourced for the first time also, but most of this was winning more market share. That is why we see good growth coming in all fronts of the company.
We have absolutely got it. One last question is that from Q2 or Q3, you will be giving a combined consolidated number on a line-by-line basis. So logically speaking, when you integrate your numbers with iDATA, your margins at EBITDA level and at PAT level then would be substantially higher. And will there be any cost synergy in times to come, not immediately, from the iDATA business over next one and a half to two years, which you will eventually focus on?
So, Kevin, first, just to give you some numbers, iDATA last year has closed about INR 240 crores top line and had an EBITDA of around INR 140 crores. So those will get line to line consolidated with us, what they will be doing it from 10th of July onwards. Those will be in our books directly coming in. Then what we have done is we have analyzed that out of those 15 locations where they have offices, out of them seven or eight places, we also have offices. And we are trying to see to synergize those offices and get the benefit of cost as well as operations. So these efficiencies will add value to the whole transaction which we plan to do over the next; it will take a couple of quarters to align those operations. So that will have another benefits which we will see.
Perfect. Thanks. I got the best perspective. Wish you good luck. Thanks.
Thank you. Thank you.
Thank you. The next question is from the line of Jayprakash from Karma Capital. Please go ahead.
Hi sir. Thanks for giving me the opportunity. The question on the seasonality, is there any seasonality in the business? Is Q1 generally stronger than other quarters?
Yes, definitely. We see good numbers coming in Q1. There is a growth in terms of certain geographies. But now global travel has come to a similar level across all months, that's what I see. So I think that if you see the acquisitions that we have done, the new contracts that we are planning, so I think definitely we see a good growth coming in all the quarters.
Okay. So just to understand, you did an IPO of this BLS E-Services, right? So I just wanted to understand what was the reason you did the IPO and because the company seems to have enough cash on the balance sheet. So if you can just give out the rationale.
So Jayaprakash, we basically wanted to deal in both the businesses separately, and they both have their own growth plans. To cater to their funding requirements of their future growth, we wanted to keep them insulated with each other. We wanted to use the cash generated by visa business into the digital business requirement as well as the digital business cash generation into visa. So for that angle, we have delisted indirectly this company. And now the acquisition which we have announced of iDATA will be done by the IPO funds which we have raised for that expansion. So those funds will be used for the growth of the BLS E-Services future growth requirements.
Okay. Thanks. I'll get back in the team. Thank you.
Thank you. The next question is from the line of Arvind Kumar Sharma from Geojit Financial Services. Please go ahead.
Congratulations, Mr. Shikhar Aggarwal. We have got very excellent results. Actually, BLS is the only company which is having business internationally in getting the profits. Otherwise, all the companies which are having global business are in deep trouble. Only companies which are concentrated on India are profitable. One more time, I'll congratulate you. Sir, my question is that we have acquired, I mean, we have gone for IPO, BLS E-Services, but the funds near this INR 300 crore is being unutilized. What is the reason? So Arvind, we just in the last question, I explained that the IPO funding we are going to use for this acquisition, which is in the final stages now.
We are signing the definitive agreement, and once that happens, we will be utilizing for that, as well as the balance will be used for the growth capital of the BLS E-Services, where we are going to be investing in the IT infrastructure, as well as we are going to open e-stores, as well as the acquisitions. So there are a couple of more acquisitions in the pipeline. As and when they get crystallized, we will be announcing that also. Actually, we are having a lot of opportunity. I mean, to say in our Union Budget, we are having emphasis on regional infrastructure of India. So you have done very good outside India, better concentrate on India. So BLS E-Services focusing only in India. And.
Yeah, yeah. That's what I want to suggest. You might be knowing it better than me.
Thanks for your suggestion. Thank you.
Okay, sir. Thank you very much.
Thank you.
Thank you. Ladies and gentlemen, just a reminder, anyone who wishes to ask a question may press star and one on the touch-tone telephone now. The next question is from the line of Sunny Goyal, an individual investor. Please go ahead.
Hello. Am I audible?
Yes.
Yes. Yeah. So I just saw that you are having an ending resolution of INR 2,000 crore via QIP or any other mode. So may I know what is the intent or reason since we had a negative working capital and we are flush with cash? So why do you want to raise INR 2,000 crore up to INR 2,000 crore via QIP or any other mode?
So, Sunny has explained, by Shikhar also, that this is an enabling resolution we have passed and which will require an AGM approval also. We will keep it handy for if we are actively looking at acquisitions globally. If there's some big acquisition comes in, we will have to, at that time, take a call of raising these funds. So, at the moment, these are all enabling resolutions. No specific fundraising has been worked out at the moment.
Okay. So you don't have any concrete M&A plan as of now?
No, no. As and when we have some, we will be then raising the funds.
Okay, sir. Okay. Anyway, thank you, sir. Thank you.
Thank you.
Thank you. The next question is from the line of Sachin, an individual investor. Please go ahead.
Hi. Thank you for the opportunity. Congratulations on an amazing set of results. Just wanted to check if there are any opportunities for revenues between the two firms, BLS E-Services as well as International. I don't recall specifically where, but is the company looking at travel insurance as a segmental revenue? And is that something that the company is looking at? And also in terms of the exchange rate fluctuations and so on, how well is the company insulated? Because we're just seeing that in the news now that there's a lot of fluctuations with the dollar. Can you please throw some light on that?
So as far as travel, this facility we give as part of the value-added services to the travelers. That we give them the couple of countries, we give them the option of applying for a travel insurance because that is a mandatory requirement for the visa. So we provide those services from respective travel insurance companies. And as far as exchange rate, we have a natural hedge that all contracts are in USD or in euro. So we collect the equivalent local currency matching with the exchange rate. So we don't have an exchange rate risk inherited into the system.
Okay. And also in terms of the enabling provision of INR 2,000 crore, I didn't see whether debt was an option. More inclined towards security, but not really sure if debt is an option or there is going to be equity dilution whenever it can happen.
So this resolution is only related to equity. And we have earlier had past, I believe, debt overall funding requirement as an enabling resolution. So those are very much there. These will be only once we have some decent amount of acquisition of something, we will be announcing it and then work out a structure of how much debt or equity we'll have to raise.
Okay. Okay. So hopefully when that happens, your existing investors have a way to participate in that.
Certainly, certainly.
Wish you all the best. Thank you so much.
Yeah. Thank you.
Thank you. The next question is from the line of Manish from KJMC Capital. Please go ahead.
Hi. First of all, congratulations on the great numbers. I just wanted to know, looking at the current international situation, as a BLS International or iDATA, are we involved in a business with any of these countries? And do you think it might affect the quarter two numbers?
We operate currently in a global scenario where there are every year or every quarter or somewhere in the other geopolitical tensions keep on happening. So I don't think on an annual basis this affects our business. We are operating in 70+ countries. So every country across the world, we have some small operations or big operations, but I don't think on an annual basis anything affects. Maybe in the short term, it might affect in certain countries, but the countries in question, we don't have any sizable revenue. So I don't think it has any effect on us.
Okay. The second question is about BLS services. As government is looking forward to reach out to every corner of India for financial inclusion and other services, so as an outsourcing service, what is the growth strategy do we have? And do we have any domestic tenders in the pipeline?
Yeah. I think we are aligned with the government strategy. That is why we started the business six years back to reach every corner of the country. We already have now 100,000 touchpoints in all states and union territories. If you see our BC businesses now reach 27,000 touchpoints, we have started loan distribution for private sector banks, wherein in the entire last year, we did INR 600 crore of loan distribution. And this first quarter itself, we have crossed INR 1,000 crore of loan distribution. So I think we are very well aligned with the government strategy of bringing banking to all parts of India. Our reach with existing banks are increasing. We are getting more private sector banks. E-governance also, we are discussing with multiple states of outsourcing opportunity that we're currently doing. Assisted e-services also, through our portfolio of 600,000-700,000 people, has seen uptick.
And that is why you see there has been a 30% increase in EBITDA of e-services as well. So I think that is here to stay, and we feel there is further growth expected in the coming quarter.
Okay. And any state government tenders in the pipeline?
There are many tenders in the pipeline, but it has to align with our strategy objective of negative working capital upfront cash collection. So we are focused fully on that. We want to grow on a sustainable and consistent manner.
All right. Thank you. Best of luck.
Thank you.
Thank you. Ladies and gentlemen, due to time constraints, that was the last question. I will now like to hand the conference over to Mr. Shikhar Aggarwal for closing comments.
Thank you, everyone, for joining in on our Q1 FY25 earnings call. We hope all your queries were answered. In case of further queries, please feel free to get in touch with Mr. Gaurav Chugh, our head IR, or our IR team and Ernst & Young LLP. We look forward to interacting with you again next quarter. Thank you and goodbye.
On behalf of BLS International Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.