Vakrangee to announce Q2 results and consider bonus issue

November 9, 2017:Vakrangee rallied to Rs 592, ahead of its board meeting next week to consider bonus issue and Q2 results. In past four trading sessions, the stock gained 11% after the company said that its board will meet on November 13, 2017 to consider issue of bonus shares.

Earlier in 2012, the company had issued bonus shares in the ratio of 1:1 i.e. 1 (one) bonus equity share for every 1(one) existing equity share held by the shareholders as on the "Record date".

Vakrangee  has moved higher after the company said that its board will meet on November 13, 2017 to consider issue of bonus shares. The stock was trading close to its record high of Rs 586 touched on November 1, 2017 on the BSE in intra-day trade.

“A board meeting is scheduled to be held on November 13, 2017, to consider and approve un-audited financial results for the quarter and half year ended September 30, 2017 (Q2),” Vakrangee said in a BSE filing.

The board will also consider and approve issue of bonus shares and to fix the record date for the same, it added
Earlier in April 2017,Vakrangee had hit a new high of Rs 354 after the company said its board has approved to provide the services of GST (Goods and Service Tax) registration, filing of returns, payment and other value added services through Vakrangee Kendra outlets. The company said it now plans to setup and manage a total of 75,000 “Vakrangee Kendra” outlets across India by 2020, covering the presence in all Postal codes across the country. It has now decided to provide the services of GST registration, filing of returns, payment and other Value added services.

Over the past few years Vakrangee has evolved, from a sub-contractor and information technology (IT)-enabler for e-governance projects, to a company taking on projects on its own. Rising revenue contribution from its retail network, Vakrangee Kendras, has enabled it to move away from capital-intensive and low return ratios e-governance projects to an asset-light business model, with high return ratios.
Earlier in 2012, the company had issued bonus shares in the ratio of 1:1 i.e. 1 (one) bonus equity share for every 1(one) existing equity share held by the shareholders as on the "Record date".

Since July 31, post April-June quarter (Q1FY18) results, the stock outperformed the market by gaining 26% against 4% rise in the S&P BSE Sensex.

Vakrangee had posted 38.5% year on year (YoY) growth in its net profit at Rs 168 crore in Q1FY18, while revenues grew 42% YoY at Rs 1,302 crore over the previous year quarter. EBITDA (earnings before interest, taxes, depreciation and amortization) margins in Q1FY18 however declined to 20.4% from 24.2% in year ago quarter.

Analyst at Karvy Stock Broking expect EBITDA margins to stabilize at 17%-18% as the commission sharing ratio with franchisees changes between 65% to 80% based on the milestone revenue targets.

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