Vakrangee Limited — Important, 05-02-2025: Updates

**Results Performance Update**

Vakrangee Limited has reported strong financial performance for Q3 and the first nine months of FY2024-25. Total income surged 31.7% year-on-year (YoY) in Q3, reaching ₹6,863 Cr, while profit before tax and exceptional items rose by 72.0% to ₹161.3 Cr. For the nine months, total income increased by 21.2% to ₹19,429.6 Cr, with profit before tax and exceptional items more than doubling to ₹590.6 Cr. The quarterly gross transaction value (GTV) exceeded ₹13,699.8 Cr, with over 3.2 crore transactions processed. The company has completed its acquisition of Vortex Engineering, positioning Vakrangee for greater integration and potential growth. A debt-free status alongside a robust balance sheet supports continued expansion efforts. The rollout of a private label in apparel has commenced, aiming for national coverage, alongside plans to enhance operational reach through master franchisee appointments.

**Investor Presentation**

1. **Financial Highlights**: Q3 FY2024-25 saw total income at ₹6,863 Cr (+31.7% YoY), profit before tax at ₹161.3 Cr (+72.0% YoY). Nine-month results show total income at ₹19,429.6 Cr (+21.2% YoY) and profit before tax at ₹590.6 Cr (+110.1% YoY).

2. **Strategic Initiatives and Growth Drivers**: The company is focusing on expanding its Kendra network with 535 master franchisees appointed to enhance operational support. Plans for the rollout of private label products underline a commitment to diversification.

3. **Business Developments**: The acquisition of Vortex Engineering enhances capabilities in ATM solutions, with a backward integration strategy anticipated to unlock future growth.

4. **Market Position and Competitive Advantage**: Vakrangee continues to strengthen its position in the last-mile distribution sector with over 22,395 outlets, aiming for extensive coverage in Tier IV to VI locations.

5. **Investor Implications**: The positive financial results and aggressive expansion strategies present a favorable outlook, with significant growth potential aligned with the Vision 2030 targets. Investors should monitor the continued rollout of the Kendra network and the integration of Vortex Engineering as key growth catalysts.

**Company Announcements - Strategic Tie-Up**

Vakrangee Limited has successfully acquired Vortex Engineering, enhancing its capabilities in the ATM sector. This acquisition promises backward integration, allowing for cost synergies and access to advanced technology, potentially driving substantial growth in future operations. The company is well-positioned to leverage this strategic investment for expanding its offerings and strengthening its market footprint.