Not Rated BLS International Services Ltd For Target Rs.NA by Prabhudas Liladhar Capital Ltd
Digital Momentum Meets Visa Rebound
We recently interacted with the management of BLS International Services Ltd (BLS). The management highlighted multiple trends supporting the company’s growth trajectory and remains upbeat on its medium-term growth prospects. Recovery in visa volumes, a strong tender pipeline, increasing monetization of the Visa network and continued expansion of Digital Services are expected to be the key growth drivers. Recent mandates from Belarus, Portugal, Slovakia and Italy, along with the ramp-up of Slovakia and Cyprus operations, provide near-term volume visibility. Visa operations in China are also picking up, offering additional growth opportunity as bilateral relations normalize. BLS continues to focus on higher pricing, favorable revenue mix and valueadded services to improve monetization per application.
BLS is also expanding beyond its traditional Visa & Consular Services business, with Digital Services showing robust growth momentum. The Aadhaar project is emerging as a meaningful new government-services vertical and is expected to generate ~INR20-25bn of cumulative revenue over the next 6 years. Digital Services also continues to scale beyond business correspondent and loan distribution services, with strong transaction activity, new banking and government mandates, and the acquisition of Atyati providing opportunities for network consolidation, cross-selling and technology services. Citizenship Invest is also gaining traction amid rising global mobility, particularly among HNIs and NRIs in the Middle East. The management reiterated its 15-20% YoY consolidated growth outlook for the next 5 years, with organic expansion remaining the primary growth driver and M&A serving as a complementary lever. Not rated.
Company background:
Established in 2005, BLS has evolved into a leading global provider of technology-enabled visa, passport, consular and citizen services. The company partners with governments and diplomatic missions to provide outsourced application processing, biometric enrolment, document handling and other front-end services, while the final decision-making on visa applications remains with the respective government authorities. BLS currently serves 46+ client governments across the globe and has processed more than 360mn applications globally.
Over the years, BLS has expanded beyond its core Visa & Consular Services business into Digital Services, providing business correspondent, e-governance and assisted digital services to governments, banks and financial institutions in India. The company has also strengthened its capabilities through acquisitions and new mandates, broadening its exposure to citizen services, financial inclusion and government-tocitizen (G2C) services.
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SEBI Registration No. INH000000271
