Vakrangee partners with MMPL for bill payment collection services

India's largest network of last-mile retail points of sale, Vakrangee on Wednesday informed stock exchanges that it has partnered with My Mobile Payments Ltd. (MMPL) for rendering bill payment collection solution (including government as well as private utility) to the unserved and under-served geographies of India, through aggregated platform and world-class Payment interface.

Vakrangee is the unique technology driven company focused on building network of last-mile retail touch points to deliver real-time banking, insurance, e-governance, and ecommerce and ATM services to the unserved rural, semi-urban and urban markets. These retail touch points are called as “Vakrangee Kendra” which acts as the “One-stop shop” for availing various services and products.

Vakrangee and MMPL have agreed in principle, to establish national alliance to offer much needed customer centric and user-friendly payment services of wide range of billers, service providers, suppliers, utility billing companies from Vakrangee’s more than 20,000 outlets.

The synergy between MMPL and Vakrangee is to tap the untouched market of consumer billing domains through highly scalable and secured integration of Service capabilities of Vakrangee and MMPL. At full scale deployment, MMPL services of key utility bill payment collection shall be rolled out from Vakrangee’s more than 20000 Kendras in one go. This tie up would drastically increase the customer touch points at the Vakrangee Kendra and ensure a boost in its core objective i.e. Financial Inclusion, providing Digital India services, Social Inclusion, Employment Generation and Skill Development.

On financial front the consolidated net revenue from operations of Vakrangee reached to Rs 819 crores in Q3FY16 compared to Rs 788 crores in Q2FY16, an increase of 4 per cent QoQ. The EBITDA stands at Rs 212 crores this quarter compared to Rs 204 crores in Q2FY16, an increase of 3.82 per cent QoQ. The EBITDA margin this quarter stands at 25.88 per cent compared to 25.92 per cent in Q2FY16. The raw material consumption decreased to 580 crores this quarter compared to Rs 714 crores in Q2FY16, ía decrease of 18.80 per cent QoQ. The net profit stands at Rs 103 crores in Q3FY16 compared to Rs 89 crores in Q2FY16, an increase of 7 per cent QoQ. 

On valuation front the stock of company is trading at P/E of 28.81 compared to industry P/E of 21.80. The stock of company is trading at 196.40 an increase of 0.74 per cent from the previous close.