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Bls International Services Ltd
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Ladies and gentlemen, good day, and welcome to the Q2 FY '22 Earnings Conference Call of BLS International Services Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to [ Mr. Parth Himani ] from Pareto Capital. Thank you. And over to you, sir.
Thank you, Stanford. Good afternoon, everyone. This is [ Parth Himani ] from Pareto Capital, where we represent Investor Relations for BLS International. On behalf of the company, I welcome you all to our Q2 FY '22 earnings conference call. I have with me from the management Mr. Nikhil Gupta, Managing Director; Mr. Shikhar Aggarwal, Joint Managing Director; and Mr. Amit Sudhakar, Chief Financial Officer of the company. We will have brief opening remarks from the management, followed by the Q&A session.Please note that certain statements made during this call may be forward-looking in nature. Such forward-looking statements are subject to certain risks and uncertainties that could cause our actual results or projections to differ materially from those statements. BLS International will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances. I would now hand over the call to Mr. Shikhar Aggarwal for his opening remarks. Thank you. And over to you, sir.
Good afternoon, everyone. I welcome you all to our earning conference call of Q2 FY '22. I hope all of you and your families are keeping well and safe. Further to our last call, I'm glad to share that we are starting to see the COVID situation improve. With aggressive vaccination drive in all major countries, the travel business has started showing traction. And major destinations like U.S., Europe, U.K., Canada, et cetera, have started to open up. All these markets are opening up in a phased manner with specified COVID norms. Recently, India administered 100 crore vaccine doses, which is a significant milestone in the fight against COVID-19. In general, the mood for travel is upbeat, and we hope the immunization program will speed up the travel momentum. As a company, we are at the cusp of major revival with rebound in our visa and consular business. Our banking correspondent and e-governance business are the biggest beneficiary of financial inclusion and digitization. Our offices and centers have also started to reopen in a phased manner, and we are witnessing significant pickup in visa applications. There have been certain hiccups in terms of lower availability of staff in the embassy offices, but now that is also improving. Visa business have been ramping up month-on-month from the mid of June 2021 onwards. During the quarter, we were able to win new contracts in the visa and consular business, including the Italian visa processing services in Russia; the contract with the Republic of Philippines Department of Foreign Affairs to provide ePassport renewal services, initially starting with Italy, Qatar and Malaysia; the immigration service business for Canada. We also signed up a contract with the Royal Embassy of Thailand for visa services in India. We also won a contract for the national identity management for [ Nigerian ] citizens living in London, U.K. to enroll them into national IND database. With respect to the national banking correspondent business, Starfin, we impanel ourselves with the Bank of Baroda in addition to winning a new license with the State Bank of India for BLS International. We have also further expanded our e-governance business. We have partnered with National Health Authority as a service provider to process Ayushman Bharat cards across India, along with another project with UTI TCL (sic) [ UTIITSL ] to undertake the verification, registration and e-card printing services across India. With this partnership, BLS is now an official PMJAY Service Agent. Our e-governance projects in UP and Rajasthan have also commenced recently. We are confident of seeing significant scale in these coming months. During the quarter, we reported a revenue of over INR 190 crores, largely contributed by consulars business and Punjab Citizen Services, along with the Starfin business, both of which are operating at a pre-COVID level. I'm glad to share that we reported significant profit growth at the operating level, largely on the back of our cost-rationalization measures. What keeps us hopeful and confident even in these trying times is investment we have paid in putting our technology and base together. Along with differentiates us is a strong balance sheet and strong liquidity position. As you know, we have put efforts over the last few years to strengthen our balance sheet. Our receivables have reduced. Long-term debt is 0, and cash balances increased over INR 310 crores. On the back of our strong balance sheet, we are exploring opportunities for inorganic growth in the tech-enabled services. We believe that digitalization will be the mantra in the post-COVID world. And thus, we are focusing on leveraging our [ proprietary ] technology assets to tap emerging opportunities. Rest assured, we look at those opportunities which meet our internal rate of return threshold. Going forward, we are even more committed to leveraging our technology and operational excellence to ensure enhanced service and customer experience. This is all from my side. I now hand over the call to Amit for updates on financial performance. Thank you.
Good afternoon, everyone. Let me take you through the financial performance for the second quarter and H1 of financial year '21-'22. We reported a revenue of INR 190.5 crores and a healthy increase of 45% Y-o-Y and 7% quarter-to-quarter, mainly due to increase in revenue from e-governance services and banking correspondent businesses, which have started functioning at the pre-COVID level. Visa and consular businesses have also been opening up from June 2021 onward and seeing month-to-month growth. EBITDA for the quarter stood at INR 27.6 crore compared to EBITDA of INR 13.1 crore for the corresponding quarter last year and INR 18.8 crores for Q1 FY '22. This is the highest EBITDA that we have achieved in the last 8 quarters. Higher EBITDA was achieved mainly due to increase in revenue and cost optimization. EBITDA margin for the quarter stood at 14.4%. Company generated PBT of INR 28.5 crores for Q2 FY '22 as compared to INR 20.8 crores in the previous quarter. Please note the PBT has been the highest since the last 11 quarters. PBT margin stood at 15% in Q2 FY '22 compared to 11.4% in Q1 FY '22. PAT stood at INR 27.5 crore in Q2 FY '22 compared to INR 13.9 crore in Q2 FY '21. PAT margin in Q2 FY '22 improved to 14.4% compared to 10.6% in the same period last year. In terms of H1 FY '22, we reported a revenue of INR 369 crores compared to INR 183.4 crore, which is a significant increase of 101% Y-o-Y. EBITDA for H1 FY '22 stood at INR 46.4 crore compared to EBITDA of INR 16.4 crore in the corresponding period last year, which is 180% growth. EBITDA margin for the period stood at 12.6% versus 8.9% in the corresponding period last year. The company generated a PBT of INR 49.3 crore for H1 FY '22 compared to INR 18.3 crores, which is a 169% jump compared to previous year. PBT margin stood at 13.4% versus 10% in H1 FY '21. PAT stood at INR 47.8 crore in H1 FY '22 compared to INR 13.1 crore in H1 FY '21. PAT margin improved to 13% compared to 7.1% in the same period last year. Company has surpassed its FY '21 profit before tax in the first 2 quarters of FY '22 itself, a testament of the fact that the business is picking up and we are on the right track. We have been successful in constantly improving our ROE and ROCE in implementing the right strategies. We are hopeful that in the coming -- and the company should achieve an all-time high profit in the current financial year and the margins will rebound sharply in the coming quarters on account of better performance from visa and consular service businesses. As I conclude, the key takeaway is that BLS is a unique business model and the performance in this quarter is a clear indication of the fact that not only is the visa and consular business improving, but we are also expecting higher contribution in revenue from other businesses. We believe once the travel around the world starts, the incremental revenue from visa business will propel the financial performance in the financials. I would now request the moderator to open the call for Q&A. Thank you.
[Operator Instructions] The first question is from the line of [ Nayan Gala ], an individual investor.
Yes. First of all, congratulation on a healthy set of numbers. I had a few questions. So sir, if we see the Q2 and H1 financials, do we believe that we are on track to achieve the numbers which we had in 2019? And going forward, what is the revenue visibility for the next couple of years? If you can just throw some light on that.
Sure. So see, as you have seen during the first quarter, the -- 2 quarters, the numbers we have achieved have already surpassed the numbers of the entire year last -- in PBT level of the last year. So definitely, I think we are on track in achieving good numbers. And from day 1, whatever we had committed when the year also started, that we are planning to achieve 2019 level subject to COVID stopping and things opening up. So I think we are definitely on track in achieving healthy numbers in the next few quarters. As you know, the business that we have achieved is still with 50% visa numbers in the current quarter that we have got. So definitely, as we expect in the next few quarters of -- first quarter of next year, COVID should -- the number should come to pre-COVID level. So definitely, margins and revenue and numbers will improve.
Okay. And sir, in terms of visa processing and everything, do we see more of holiday kind of visa that we process? Or is it still the business visa that we are processing with things opening up at a country level?
So definitely, see, with things opening up at a country level, we are seeing both category of demand coming in. We normally do not judge which categories of visas are because we do not analyze the data as we are not allowed to, but we are getting more tourist visa for sure. Wherever the countries are opening up, people have been saving money for the last 2 years. So wherever the countries are allowing to travel and countries are opening up, we are seeing more of the tourism travel happening.
Okay. Okay. Okay. Sir, if you can just help us to understand the breakup of the revenues in terms of visa, consular, Starfin and Punjab contract for the quarter. And which segment has grown more in that?
If you see Y-o-Y, the growth has come in Punjab. That is e-governance and the Starfin. Visa business is still -- has not eased up pre-COVID levels, which we expect by Q4, it should start reaching the Q -- pre-COVID level, subject to the no third wave is there. But the percentage split is around 80% to 85% of our revenue. Still even in this, [ confidence have ] come from visa/consular business, which consists of visa that 50% capacity and consular services which are almost at a pre-COVID level. So definitely, as in the next few quarters, we are expecting the margins also. As you know, in this quarter, we have achieved around 15% of EBITDA margins. So I think in the next few quarters, margins should also improve as more and more people are opting for premium services like mobile biometric and different services. And also, we have got increase in charges for a lot of these value-added services from various governments. So definitely, margins should improve.
Okay. And then in terms of the vendor visa business comes at the pre-COVID level, what is the revenue expected out of that business, like the incremental revenue expected out of that business?
See, whatever we have achieved today in this quarter is the base level what we have achieved with the current business, with visa business, that 50% capacity which is happening around the world. So this is what we plan to achieve. But exact estimation, I don't think will be feasible to give right now. But definitely, there will be at least 15% to 20% growth.
Okay. Okay. Okay. And sir, we see the Punjab contract performing well for us. If you can just guide us through what is going on in the UP and Rajasthan contracts and what can we expect -- when can we expect the business to ramp up and start delivering like the ones in Punjab?
Correct. So see, as you know, Punjab model is slightly different from UP and Rajasthan. Punjab offices have been given to us by the government wherein we have effectively -- it's a CapEx-light model, asset-light model, and we have been generating revenue. We have been in Punjab for the last 5, 6 years. In UP and Rajasthan, as you know, it's a recent contract we just entered into. In UP, we have now established 10,000 offices. In Rajasthan, we have established more than -- Amit, how many offices in Rajasthan we've established?
[indiscernible].
Yes. So more than 600...
[indiscernible].
500 we have done?
[ UP, 30,000 ].
Yes. So this is the presence of offices that we have -- so right now, I don't know if we have started generating a big revenue out of these. So right now, still, the revenue out of our e-governance services from UP, Rajasthan is still not very high. So as we go along, I think we can give us a little bit more clarity on the revenue estimation from these contracts.
And these are some long-term contracts? Or how it is like -- is it renewal or every year-on-year [ basis ]?
These are long-term contracts, long-term contracts.
[Operator Instructions] The next question is from the line of [ Mansi Shah ], an individual investor.
Sir, I have a couple of question. And like, sir, what is our business model with the e-commerce companies like Flipkart and Amazon? And what are the kinds of revenues and margins do we expect in the coming quarters?
Yes. Thank you for this question. So see, as you know, our business model is that we are tying up with multiple states and opening more branches. So as you know, in UP, we have opened 10,000 offices. In Rajasthan, we've opened more than 600. And we've also set up banking correspondent medal -- model, wherein we were already working for State Bank of India, in many states operating around 1,600-plus branches. And we recently got a new contract from Bank of Baroda, plus another contract from State Bank of India. So our model is to utilize these existing offices that we have to assist different companies like e-commerce companies to do selling. So the margins, definitely, I think it will be good margins. We will be getting more than 10% margin on the sale out of our touch points. So as we grow, we will get more demand in terms of -- as more traction kind of comes in.
Okay. Okay. And sir, if you can tell us the number of transaction we processed in quarter 2 FY '22 and whether there's increase or decrease compared to the previous quarter.
So the number of transactions have definitely increased in -- compared to previous quarter. Pre-COVID, we were doing 15 million applications every year. As of March 30 last year, we had done 52 million as a company. So definitely, these all-new contracts are in addition. So I think UP, Rajasthan, all these will add numbers to our new year.
Okay. Okay. And sir, how is the subsidiary, Starfin, currently performing? And what are the growth plans related to the same? And what is the kind of opportunity you see in this space?
So as far as Starfin is concerned, we are very positive about this business, which we started about 4 years back. And it has been showing a growth every year at 20% CAGR. And what we have -- we are very confident about this business. We are even looking at inorganic growth in this area. So the business is providing the last-mile banking services on behalf of State Bank of India wherein we have now added Bank of Baroda and Central Bank. We are going to add further CSPs for them in the coming quarters. And we are also looking at inorganic growth in the same. We have one tender from SBI of around 400 new CSPs in BLS International also.
700 new CSPs.
700. Sorry, 700 new CSPs. So we see a good potential of growth to this business.
Okay. And sir, lastly, what are the CapEx plans for FY '22 and FY '23?
Okay. So on the CapEx, our normal operating CapEx which we normally have been incurring over the years has been around INR 6 crores to INR 7 crores a year. What we are doing now is we are working on revamping our IT. We still don't know the exact figure of how much we will have to spend on that, but that will be a major CapEx coming in the current year. As well as we are trying to have a proper infrastructure in a few of the key countries, and we may do some investment in that also in the coming year. But normal OpEx -- CapEx is about INR 6 crores to INR 7 crores a year.
The next question is from the line of [ Muskaan Chaudry ], an investor.
Sir, I just wanted to understand, with the cash balance of upwards of INR 300 crores that we have today, what kind of opportunities can we target for inorganic expansion?
So our strategy is, first, to look at businesses in our own verticals. As you know, we are in 3 verticals. One is visa and consular business, the second being our e-governance and the third being banking correspondent business. So we are firstly looking at any interesting acquisition in these 3 areas. And over and above, we are even looking at other businesses which are more related to tech-enabled service-providing businesses.
Okay. Okay. So sir, there's any active sort of activity [ put ] on this front? Or are we like planning to start it in subsequent quarters or years?
Frankly, we have been very active over the last 1 year, and still, we are working on it. And hopefully, something should get finalized in the coming quarter.
Okay. Got it. Got it. And sir, in terms of the contracts that we've won recently, what will be the size of the opportunity of these new contracts? And I mean, what do they exactly -- what will be the incremental benefit to our financial, these contracts in visa and consular business specifically?
See, we have won very interesting contracts recently, one being with the Republic of -- Department of Foreign Affairs for the passport renewal for the Philippine expatriate population living abroad in those countries. We have started with Italy, Qatar and Malaysia. So as you know, because post-COVID, a lot of the governments which are not outsourced before are now outsourcing. Market penetration is improving. Previously, the market was only penetrated 40%. Now it's 50%. So these new governments are outsourcing this contract. With Philippine, we'll expect to do 100,000 application at different -- at $25 (sic) [ EUR 25 ] to EUR 35 service charge which we have won in different countries. So that is the revenue that we expect. So every contract has different revenue expectation. We have not really taken out the total expectation. But for Italy visa processing in Russia, we're expecting to do 140,000 application at EUR 32 -- EUR 38 that we have won. Then -- so every contract has a different revenue potential that we're expecting.
[Operator Instructions] The next question is from the line of [ Rajiv Venkatesh ], an individual investor.
I have a couple of questions, one on the Spain government's renewal. Where are we on that front?
As we know, post-COVID, a lot of governments have been extending the contracts. So we are also in the process of talks with the government. And currently, we have the contract till next year, so we are performing that very healthily.
Okay. Another question is on -- the entire space of visa processing is getting heated up. If you see, I think the Blackstone has acquired VFS Global. So how are we competitively placed to ensure that our business model remains intact and we get the market share [indiscernible]?
Correct. So see, as you know, this deal has happened wherein our competitor has been bought for more than $2.5 billion or $3 billion. So this has definitely given a big limelight on this sector. We have been approached by multiple funds also maybe to understand what our strategy is going forward. So definitely, the market is opening up and market is poised to boom in the next few years. If you see the trends, as per different reports across the world, travel sector is -- right now contributes 10% to the entire global GDP. But this next 2 years will boom like heavily. So that is why a lot of traction and limelight is on this sector. As you know, in the next 2 years, around $1.5 billion to $2 billion worth of tenders are coming up for renewal by different developed governments in the outsourced sector and also a lot of new government which have not outsourced before are coming up for outsourcing. So definitely, in the next 2 years, the potential is huge, which we are poised to tap. And we see also our company growing. We have already achieved -- surpassed the last year numbers in the first 2 quarters in terms of PBT. So I feel that, that is a good achievement with the current visa numbers. So as and when visa numbers grow, definitely, we will get increase in revenue and with the cash we have in books and acquisitions that we are looking at. I think in the next 2 years, certain new contracts, which we are aggressively targeting, if we manage to get it [indiscernible], the numbers should improve at an aggressive level.
Okay. And I think last quarter, you had mentioned we were very close to doing the M&A with the company, and the valuations didn't provide as much comfort. Any point on that particular thing on the M&A side?
See, we are -- as I said, we are, for the last 1 year, have been aggressively looking at M&A side. And till -- today, also, we are working on a couple of transactions. Let's see when they get crystallized. So we are very hopeful in this financial year, we should be able to close 1 or 2 acquisitions.
[Operator Instructions] The next question is from the line of [ Mansi Shah ], an individual investor.
Sir, I have 2 questions more. Sir, can you walk us through the tie-up with ICCR? And what are the prospects in terms of revenue from this segment? And would the revenue be on the basis of fixed amounts or on a 4% basis?
So see, this is a new contract that we won with ICCR. This is normally to do with facilitating the visitors coming on behalf of the government to India or the delegations from ICCR or from the Indian government going abroad. So we get a revenue per application and per applicant wherein we are assisting them with the arrivals within India and with their -- facilitating of visa processing. So this is the first time this contract has been given to us. We do not have a very clear expectation in terms of total revenue that we expect. But we have won this contract at different service charges for different services. So this is where we stand.
Okay. Okay. And sir, about the new business of issuing digital health certificates, when will that income start reflecting in the book? And on the broader basis, when the business starts growing, what are the level of revenues and margins we can expect from them? And yes, that's it.
So see, digital health certificates that we had won was with -- we are tied up with the company called Knowledge Catalyst in Singapore, which is to facilitate travelers to and fro from Singapore. As you know, Singapore has recently started opening up. So when the numbers start coming in, we tied up a while back. But numbers are not there since travel was not happening in Singapore. So when the travel numbers start coming in, we'll definitely make some good revenue on that. And our main game -- main plan is to use that and spread that globally, digital health certificates business. So right now, this is very new. This is for the first time, a lot of things we are doing. That is the reason that we do not know exact numbers how much we will expect. More like a pilot project which we have taken up.
The next question is from the line of [ Nayan Gala ], an individual investor.
Sir, I have a few more questions. In terms of -- we see that we are among the top 3 players in the visa processing industry. So what is that we do different? And how do we compete while winning a contract in the global visa processing?
So see, as you know, we are the only Indian company globally in this business. We started in the year 2005. It took us more than 15, 16 years to stand where we are today. This is a highly competitive business and highly -- getting in the business is very difficult. So the companies that are there already are qualified for the tenders. It took us 15 years to get qualified. So first of all, to get prequalified, you need to have performed this level of services with these many governments for a lot of years. So this is what governments look at awarding you a tender with. Also, they see your credentials; your past performances; the SLAs that you adhere to; if you're following all the laws, the GDPR laws or different laws of each country; what is your customer experience or what is the biometric error rate and what is the technology that you offer. We being an Indian company, definitely, we have this advantage of having a good amount of Indian talent to offer good technology services. So definitely, the platform and the software that we provide to the government is quite flexible, quite stringent in terms of security SLAs and quite advanced. So this is what also gives us an advantage in terms of bidding for tenders. And as you know now, the contracts that we are winning are at good prices. So recently, the contract for the Italian government and Russia, we won -- we are working at EUR 38. Whereas the contract with the Philippine government, we are working in Italy at EUR 35. So definitely, we are being more advantaged through technical knowledge within the company or technology that we are offering. That is leading to more growth of the company and winning more tenders from the competitors.
Okay. Okay. Okay. Got it, sir. Sir, a few on the financial side. So we -- if you can just clarify in terms of what kind of the other income that we are generating. So what is the nature of that other income? And going forward, like will it be constant or how it is?
So other income is mainly on account of interest which we are earning on our fixed deposits in India and outside India on the funds which are lying with us. And now that we don't have -- earlier, there was -- last year, we had a small amount of government grants which we got due to COVID, which was part of the other income. Otherwise, there's no other related -- other income related to -- and other incomes.
Okay. And sir, if I'm correct, like we -- based on our business model, we collect upfront fees from the end user. And like majority of the income which is generated is upfront, right? So -- and we are -- in the balance sheet, we are showing a receivables of INR 96 crores. So if you can just help us understand how this matrix works out for us. Like the INR 96 crores, what is the reason for that amount being reflected on the balance sheet?
Sure. So basically, this receivable of INR 96 crore is mainly on account of 2 accounts. One is on account of Punjab receivables which are about INR 67.75 crores outstanding, which we expect that it should come in the current financial year. This was related to the old contract which got -- was changed. And this billing was the last billing which we have done to them. And the balance is where -- internationally, wherever we have our branches or we have a joint with a partner, we do a billing to them. And that has normally been done after a month and the payment comes within 30 days after that. So that's why it comes in the book as a receivables. But basically, we control those partners and the accounts from where the payment comes to us.
So in the [ max ] situation, it is 30 days, the receivables are 30 days.
That's right. 30 or 60 days, you can say, depending on from where the payments are coming in.
Yes. So apart from this. And if we see, like, as you said, [ key ] the Punjab, the contract which we had, and we had some INR 67 crore receivable out of that. So this -- by end of this year, it will come in. So the full year FY '22 receivables will be quite lower. Correct?
It should be. It should be.
Okay. And sir, like, in terms of the expenses, during the COVID, of course, we would have written -- like stopped certain kind of expenses. So are those expenses which we had stopped incurring, coming back in the books?
So as and when the operations are starting in a particular country, the expenses are coming back. But what we have done is, during the COVID, we have rationalized the expenses. And we hope that with the same revenue or more than revenue, our expenses will not go higher than what we were paying earlier. So we have streamlined the expenses to a major extent.
Yes. And things -- sir, when things become stable, what is the revenue -- EBITDA margins we are expecting to be sustainable?
See, we have been -- it should go up by at least 200 to 300 basis point compared to what we were doing earlier, mainly because of the rationalization of the cost which we have done during the COVID period.
Okay. Okay. Got it. Got it. So in the range of, you can say, around 16%?
Earlier, we were around the 11.5%, 12%. So we should be around [ 13% ].
[Operator Instructions] The next question is from the line of [ Avinash Varma ] from -- an individual investor.
Yes. Congratulations on a good set of numbers. I just wanted to understand the perspective of how this Blackstone deal happened with VFS Global. So at -- how does that happen, a [ time ] sales -- or how -- in respect of the sale deal which happened, where are -- is our company? What should be the valuation of BLS International? And where are we currently? If you can give some color to it.
See, obviously, we have no idea. We don't -- from the industry knowledge or from the press releases, whatever we hear, we can tell you. Definitely, what we know was that the competition was highly debted. It had a big debt on the books that was what was there in the different ratings, whereas BLS is a 0-debt company. So maybe now as COVID subsides, a lot of traction is coming to the sector and people are seeing big growth happening. As I told you, a lot of funds are also trying to reach out to us to understand our strategy for growth and whether -- where our objective is. So I cannot exactly comment on what the deal was because I'm not privy to that information. But what I know is from the industry point of view, we are the -- one of the only companies in the industry which is 0 debt and we have cash on the book. So definitely, our valuation and our market potential should improve in the next few years. Amit, do you have anything to add on that?
Yes. Frankly speaking, we don't have any details of what valuation and how they have worked it out. But one thing is there that this has created a buzz in the market for visa processing companies. And let's see how the market takes it and value the businesses going forward. But all will depend on how fast the travel industry grows or come back to the pre-COVID levels. So that will be very important.
The renewal thing, is that coming up soon?
We answered that question that we have it for the next year. We have talked to the government for extension.
[Operator Instructions] The next question is from the line of [ Sudesh Mohanta], a shareholder.
Congratulations for a wonderful set of numbers. So I just want some more color on a model, a business model. So let's say, when we talk about our visa processing business, essentially, the task that we perform are document verification, identity verification, document processing, which I think in one of our earlier presentations, we termed them as nonjudgmental tasks. So is that pretty much how this -- has the color remained the same over the years? Or you think the tasks have become more complex [ as we have ] and also whether it pretty much remains the same in your other lines of businesses. Are they essentially nonjudgmental tasks? And second, a related question is, do we see ourselves using technologies like blockchain as we grow further? And will that be a central part of our tech-enabled services?
Thank you so much for this question. So definitely, you see, as we started the company -- decisions -- what we essentially do is collecting of information, processing them, taking care of all the security parameters, as in collecting the biometric from the applicants using our software, using our technology, transmitting that data, doing a sanity check on that data in terms of whether the data has been inserted correctly, the quality of the data. And whether to grant the visa or not is the sole judgment of the embassy. We do not want to get into that decision whether -- deciding on behalf of the embassy to a particular individual because that is done on the -- with a different arrangement where the government have access to their internal databases, with the criminal security check or whatever measures they undertake. So definitely, this is something which we are not involved in currently. And even if you talk about citizen services, our model is essentially the same. We do the 99% nonjudgmental tasks. Whether to grant a birth certificate or arms license depends on the particular government officer or the government department, which is something which we are not privy to. We work under their guidelines. Going forward, definitely, a lot more things have been outsourced to us. There are a lot of things which were not outsourced wherein as part of the process, a lot of things have started to get outsourced. But core task of judgmental decisions are still with the embassy.Going forward, definitely, we think about using a lot of technologies like blockchain or different technologies in terms of processing of applications. We do have a lot of technology in-house which is related to blockchain or other new instruments or AI. But we have developed the solution in certain aspects like chatbots and all. They have been approved by the government. We have started using them. But a lot of it depends on the approval from the government. So we are constantly giving presentations to the government about the new technologies in the market and new technologies that we have developed. But it is up to the government to approve them, to be used in the process of visas. So this is where we stand.
Ladies and gentlemen, that was the last question. I now hand the conference over to Mr. Shikhar Aggarwal for closing comments.
Thank you, everyone, for your participation in our Q2 FY '22 earnings call and continued support. I wish you and your family a happy and safe Diwali and a prosperous New Year. In case of any further queries, you may get in touch with Pareto Capital or feel free to get in touch with us. We look forward to interacting with you next quarter. Stay safe and healthy. Thank you.
Thank you. Ladies and gentlemen, on behalf of BLS International Services Limited, that concludes this conference. We thank you all for joining us, and you may now disconnect your lines.