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Bls International Services Ltd
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Ladies and gentlemen, good day and welcome to the BLS International Post Result Q4 FY '19 and Annual Performance Conference Call hosted by Asian Markets Securities Limited. [Operator Instructions].Please note that this conference is being recorded. I now hand the conference over to Mr. Vinay Pandit from Asian Markets Securities. Thank you, and over to you, sir.
Thanks, Raymond. On behalf of AMSEC, I welcome you all to the BLS International 4Q FY '19 Earnings Conference Call. From the management, we have with us Mr. Nikhil Gupta, Managing Director; Mr. Shikhar Aggarwal, Joint Managing Director; Mr. Karan Aggarwal, Executive Director; Ms. Archana Maini, General Counsel and Company Secretary; and Ms. Ruchi Singh, Head Marketing and Corporate Communications. I would now like to invite the management to give their opening comments on the performance for the quarter and for the full year, and their vision going forward. Over to you, sir.
Thank you, Vinay. Good afternoon, everybody. Welcome to the fourth quarter earnings call. My name is Nikhil Gupta, I'm the Managing Director of BLS International. As you are aware, BLS International is a leader in consular and Visa process outsourcing and is a preferred partner for embassies and governments across the world. The quarter which concluded has been satisfactory. Our results have been good, and we have focused on transforming our existing structures and preparing the organization for sustained and profitable growth. Now I would like to give you a quick highlight of the financial results and then open the session for the questions and answers. The total income for the quarter ended March 31, 2019, stood at INR 251.61 crores compared to INR 206.17 crores in the same period last year. The net profit for the quarter ended March 31, 2019, is INR 16.66 crores compared to INR 20.07 crores in the same period last year. Earnings before interest, tax, depreciation and amortization is INR 25.76 crores. The annual cumulative results are as follow, the total income for the fiscal year ended March 31, 2019, is INR 846.38 crores as compared to INR 793.10 crores for the comparable period in the previous year. Net profit for the year is INR 105.16 crores as compared to INR 96.53 crores in FY '17, '18. BLS International is pleased to inform everyone that it has achieved a long-term, debt-free status through early repayment of all outstanding long-term credit facilities mentioned to us. With the addition of the new contracts and the efficient manager -- management of the existing ones, BLS International has showcased efficiency and yield to provide the best and quality services to the citizens across the globe. With the global standard of providing services, we are diversifying our service portfolio and partnering with governments across the globe to provide differentiated and personalized experience in the coming quarters as well. The Spain global contract yielded strong results. Since the rollout of this project, the visa application centers have regularly been fortified with wide range of value-added services for the applicants' convenience. BLS International's contract for Attestation and Apostille Services were renewed by the Ministry of External Affairs, India. The company expanded operations and added 11 more centers across the country to facilitate the process for MEA and the customers. BLS has also signed contracts with the Embassy of Vietnam and Embassy of Lebanon to accept visa applications in India. This addition to the already robust portfolio of consular and citizen services offered by BLS International reflects the company's focus on efficiency and continuous excellence in its operations. The company's now accepting visa applications and providing attestation and legalization services for travel to Vietnam and Lebanon at Mumbai, Hyderabad, Guwahati, Kolkata, Chennai, Ahmedabad, Bhopal, Goa, Kochi, Lucknow, Raipur, Delhi, Bengaluru, Chandigarh and Trivandrum. In this financial year, BLS International entered a strategic alliance with Sopra Steria for delivery of contract awarded by United Kingdom visas and immigration, to handle visa renewal applications for individuals who are already in the U.K. We are also awarded a contract to advance innovative delivery services under TAW-SEEL using Mobile vans in UAE. We expect to roll out the project in current quarter. The renewed Punjab project, which is on a user-pay model is operating on track and has achieved profitability, and expected to improve further as new services are added to the portfolio. Under the new projects, we are operating 352 facilitation centers for providing 242 citizen services, they're up from 169 from previous year, covering 16 districts of Punjab and working with 22 departments. The total applications count for the year FY '19 stood at 8.4 million as compared to 10.7 million applications processed in FY '18. We're in contract with Islamic Republic of Afghanistan in UAE, representing the Afghanistan mission in UAE, Qatar, Oman, Bahrain and Kuwait and Saudi Arabia. Under this partnership, the company is providing consular services through registration of the Afghan citizens, et cetera. We've also set up a high-powered Advisory Board to complement the fortified leadership teams. The members of Advisory Board include senior and prominent professionals from civil services, recognized for the successful track record in leadership. Meanwhile, we're continuing to strengthen our leadership team to benefit from the experience of the seasoned professionals. In the last quarter, BLS has also conferred with multiple awards from entering into the select club of Fortune India Next 500 companies to Mr. Shikhar Aggarwal, Joint Managing Director, BLS International, winning the Young Achiever Award of the Year at the Times Network's National Award for Marketing Excellence in Travel and Tourism industry.In conclusion, our net affairs of the industry is evolving rapidly and within this emerging scenario, we're already gearing up to provide innovative solutions to governments and citizens across the globe. We've engaged global consulting from EY to review our structures and processes and are now implementing the recommendations that will enable us to re-engineer and transform the business. With this, ladies and gentlemen, thank you for your patience. And I now invite questions relating to the results of this quarter. Thank you.
[Operator Instructions] We have the first question from the line of Ravi Naredi from Naredi Investments.
Sir, if you can tell me just how much money we'll be receiving this June-March quarter from Punjab government? And how much services we have offered in March quarter?
So we've received -- we've been receiving about INR 25 crores a quarter. From the quarter ended March, we received some INR 25 crores from the government. In this quarter, April to June, also, we've received an additional amount of INR 25 crores from them.
So after December quarter, we have received INR 50 crore, right?
That is correct.
Okay. And second, the [indiscernible] bills of INR 33.82 crore sales of affairs to government, whether the government has exited this amount?
They've already started paying us some amount against these bills.
So then why the auditor has never qualified these affairs to transfer?
We've explained that in a note to say that there is some difference of basis of valuation of the assets, which is under discussion with the government.
Okay, okay. Rest is everything is okay, right?
Yes.
And second, whenever we talk on the con call and see the management interview, you always show we are getting so much visa work, but the top line is not going to rising in the last one year, and what you want to say on this matter?
See in the last year, as we have explained that the Punjab government has revised the contract, whereby the revenues from that contract have come down substantially. But still, the total revenues of the company as you've noted, have gone up, which means that we've made up for the loss of revenue from there by new contracts that we've got from U.K., for example, and growth in Spain and other operations.
Okay, okay. So in current year how much growth, we are expecting? Can you tell in that way?
Shikhar, would you be able to take a wild guess on that?
Yes. I think in current year with the existing contracts that we have, we expect that our revenue should grow at least by 10% to 15% because of the revenues we're bringing in from the new projects like U.K., which we expect to stabilize in the first quarter now and revenue should start coming in -- profits should start coming from the next quarter. And in addition to 10% to 15%, if we get any additional business that we are hopeful of finalizing some contracts, our revenue should go upwards.
Okay. And so much cash balance, we are having any new acquisition is on cards, near future?
Sorry, can you please repeat?
Any acquisition is on the cards, we have much cash balance in the balance sheet. So any acquisition are in your mind? To acquire any company?
As a company, we are regularly evaluating options within our industry, and allied services. So once there is anything, we will definitely let the investor know anything, but not anything concrete.
[Operator Instructions] And we'll take the next question from the line of Shikhar Mundra from Investor.
Yes. So I just wanted to understand the revenue split for the quarter between your visa processing in the Punjab contract?
So the Punjab contract was approximately INR 15 crores for the quarter, rest of it is all visa services.
Okay. And what are the typical margins in the visa services and how -- and the Punjab -- can you give me a split between the margins?
Punjab would be around 10% to 12%. And visa, Shikhar, would be approximately, how much?
It's much higher, visa would be around 17% to 18% EBITDA.
And Punjab is around 20%, 22%.
And now as you know in the new Punjab contract, effectively EBITDA will pick up back for the contract as we have no debts from any company or banks. And all assets are being provided by the government.
Okay, okay. And what was the visa revenue in the year-on-year, take quarter 4 FY '18? Because I think your Punjab revenue must be much higher in that quarter?
Yes. Punjab revenue is approximately INR 50 to INR 55 crores in the corresponding period last year, which has come down to under INR 15 crores now.
Right. So I -- in your [ visa ]. Actually, I just wanted to understand split between the different countries. And also since it's INR 235 cr approximately, so how much is from the Spanish? And how much is from the U.K.? U.K., has it started contributing significant amount?
Yes. So U.K. as -- in the March quarter, this was the first quarter when the U.K. actually was -- revenue was bringing in. This revenue from U.K. is not very significant because the rollouts were still happening till April. We -- complete rollout happened only at end of April so revenue from U.K. will not be significant. But I think, split -- for a split, we can talk on one-to-one basis.
We simply did not see a -- [ not ] seen flip on all the contracts because we are running multiple contracts. To keep a track of every revenue, it would be a difficult task.
Okay, okay. So with the additional -- the Vietnam, Lebanon and the U.K., so how much can we expect in terms of revenue? And what's your expectations for the next couple of years, like how much can they contribute in terms of revenues?
U.K., as we've announced is around GBP 100 million, GBP 110 million that we're expecting over 3 years from the contract, once it is at a stabilization stage. So over 3 years, we expect it will not be equated, the revenue will not be equal in each year. But we expect, as we go along the revenue should become higher.
So that's GBP 100 million for the 3 years total?
Correct.
And for the Vietnam and Lebanon?
For the Vietnam and Lebanon, we have effectively started doing the services in India when the market is growing for them. So we don't expect a very sizable jump in revenue from these missions. But I think they are strategic win for us. And they opened, these countries, in different markets for visas. For example, Lebanon has also, I think, for the first time in India, and they are not outsourced globally anywhere else. So we are approaching the government. So they are -- that is the reason that we have acquired these contracts.
Okay, okay. Got it. And -- all right. And as far as this government contracts are concerned, so can we -- are we waiting for other state government contracts also, because I think with the utilization like Punjab there must be other opportunities also coming up?
Yes. There are a lot of opportunities. We are bidding for some of them. And wherever it's making sense to us in terms of being able to collect our money from citizens rather than the government. So wherever it makes sense, we will certainly do that.
All right, all right. And so if I just remove your other income but can you just give me a -- because you're on the other income, I was not able to understand that part from the -- because it's a huge number of 15 figures. And for the last 2 quarters, it has been huge number, so.
[indiscernible] So we have invested somewhere close to INR 81 crores for a 5-year contract with the government of Punjab. Now that contract had ended within 2 years so the next 3 years, we had transferred the assets that were acquired for that contract. All the assets were transferred on to the government, on the cost basis. So whatever residual cost from those -- of those assets was available, was shifted to the government. All 22 private sectors were equipped with computers, networking, generators, UPSs and all the other trajectories for operating such a large network. That was transferred to the government. It's important for us to note that, though there is a onetime income of around 35 -- INR 33.85 crores, subsequently there is onetime expenses on accord of interest, depreciation, expenses on the government -- Punjab government front, which are also reflected in this year's balance sheet. So on a net-to-net basis from FY '19 to FY '20, the impact from this additional input should be 0.
The next question is from the line of [ Manuel Vanved ] from Laurel Investment Advisory.
Sir, congratulations on a good set of numbers. I just wanted to understand, one, that even now versus this competitor, sort of, we miss out or, sort of, we're not able to gain as much traction. So I was wondering what are the things that we feel that we need to improve as a company? And what is the difference that BLS, as an organization, will be able to bring forth in this coming year, so that more contracts come towards BLS?
Correct. I can take this question. This is Shikhar [ Desai ]. See I don't want to disclose much of our strategy on the investor call. But what I can tell you is that we have revamped our business development team. We have put more soldiers -- more people on the ground across the world. And we have got a lot of people now from senior positions who are heading strategy and business development for the companies, who have made a strategy for us. And we are now starting to make targeted approach. So I think all those results should start now in the next 2 years, for all the approaches that we have done. So basically, we have revamped our business development strategy. Now we are holding shows with the government, also inviting them to our offices. They are seeing up to my [indiscernible], so they're getting more familiar. And we have a very good traction on the mix tenders that are coming in the next 2 years now. And we've already started working for them. And also some tenders that we have bid for last year. Now results are actually, as I told you, take some time to come in. And now some results have come in, and we will be announcing some results soon when they are finalized.
Okay. That is good to hear. And my second question was related towards U.K. operations in -- sort of, I think there was some teething troubles in terms of the clients that we were servicing initially. And I'm wondering where the situation stands right now and sort of -- is there I mean -- sort of is there any conversation on that with the partner in U.K. or the agency that has allotted that contract to the partner?
So basically, in U.K. as any contract when we start, we have to open 60 offices across the U.K. Also teething trouble was that they were a panel mechanism of the current delivery also was going on, the U.K. post office was still going on because the government had told us that you have to start the centers in a same manner. So -- and then people were needed to be made aware about the new services, the prices had changed, the set up to get those services to apply biometric had changed and people were being informed. As of April, all our centers are live in the U.K., post office has been closed, people are aware now so all those teething troubles that are a part of any project that starts in first few days, not because of any problem on our end or the government end, but it was a normal teething trouble that happened and that has been solved already.
The next question is from the line of [ Niranjan ] Shetty who is an individual investor.
In the last con call, you had mentioned that the shareholders won't be rewarded via dividends or buybacks but instead via growth. Also you had confidently guided for about 30%, 35% growth in spite of the setback in the Punjab contract. But from the result it seems like the growth seems to be flat on a Y-o-Y basis and there's been a de-growth on a quarter-to-quarter basis. Could you just explain why the guidance couldn't be met?
Yes. So as you know dividend this year, we have declared 100% dividend on the paid up capital, as in what was approved by our Board of Directors in the Board meeting that happened on Monday. Last year, we had declared dividend that was up to 50% of the paid up capital, this year we have doubled that dividend amount. And -- but we have the projections the we had targeted for the growth, was before we knew that the Punjab government contract will change. And then the new contract came in and, obviously, the turnover from that contract that we're expecting on a year-on-year basis is INR 60 crores. Also we hit the government contract, we were expecting it to streamline much faster. But with government, because of the political scenario that was happening they wanted first to make sure that all the phases that we operate are 100% streamlined. Only then they wanted to shut down the existing system. So that was only one of the few reasons that led to the growth coming in late, that will come in this year.
But even now from what you just mentioned to the previous gentleman that our guidance, we are only looking at about 10% growth, as opposed to earlier, we were at -- we were aspiring for a high growth, 30%, 35%-ish range, but now it seems we are going to be growing at around 10%, 15%-ish, is that going to be new normal?
No. That will not be the new normal. Actually this year we want to consolidate all our operations. We want to -- we have taken 1 big contract, which is for the U.K. government we have taken additional new contract and this is the growth that we have earned only from the existing business, this 15% to 20% growth that we are targeting from the existing business. On top of that is the new contracts that we win, so growth will be higher from that.
And are we, at least, close to, sort of, bagging some new, big deals? I understand and appreciate you can't disclose much, but in terms of at least where we stand, in terms of tenders and time lines?
Yes. We are close. Yes. Yes. We have actually -- sorry? Go ahead.
Sorry. No. I mean so we can expect the revenues to come in as well this year, this FY '20? The contracts?
Correct, correct. Yes, revenue will come from those contracts this year.
Right. Okay. All right. Last question is around, again, I think you're holding a lot of cash on books, what is the plan for those? I know we were building a budget for the upcoming -- bidding of upcoming tenders and stuff. Is it still going to be the case, we're going to hold on to a lot of cash on book?
No. Actually as you know that we had managed a cash flow situation when there was outstanding amounts of INR 300-odd crores from the Punjab government from all the cash that we had on books. Now more than INR 200 crores of that has been received. And INR 100 crores is pending that is coming in as we speak. And we must much appreciate that as of date all our outstanding liabilities and debts have been cleared from the books. And this money that we are planning, first of all, to use it for the new tenders that we will operate, the tenders that I announced that we will be announcing very soon, we need to deploy some cash in that. And as I told you, we are now revamping our business development strategy. We are putting more people on the ground, we are creating interest of the people from the industry, to do -- strategize for us and help us approach new governments. So this money will be needed for that.
Right. So you mean all of this is just being, sort of, accounted for the upcoming business development opportunities? And there's no -- there's not going to be an excess cash on the books as such? So all of this is, sort of, planned for the next couple of years? Right?
Correct.
Okay. All right. Well, thank you so much and all the best. Hoping that we get some good news on some big, new tenders coming in.
The next question is from the line of Prabhat Chandra from Greenfield Advisory.
I have 2 questions. The first question is regarding the U.K. business. I'm just trying to understand how does this business work? Are you directly exposed to the U.K. government, in a sense that we'll collecting your revenue from the U.K. government? Or you are collecting it from the customers directly? Or is there a third party involved in between who will be paying you? And how much is the risk of not getting the money and our receivables increasing again?
I think as far as new contracts is concerned, we are going to get the money directly. Nothing is going to be due from the government, nothing is due from the government, we collect the money from the citizens itself, so there is no problem of receivables. This is user-pay model.
In fact as of date, all the contracts that are running there is no money that is connected from the government. And whatever receivables you see are either from the Punjab -- old Punjab contract, that are to the tune of INR 118 crores, which have also come down by another INR 25 crores in the month of April. All from our partnering or subsidiary companies, which are new to us. So our -- globally our model, as on date, is 100% on pay-per-use model, so there is no government outstanding or future receivables of the government. In fact the whole of Punjab contract, which is now generating sufficient profits is also on pay-per-use model.
Okay. That's good to hear. But then if I look at the receivables, or the total bill receivable of INR 176 crores, INR 118 crores is form Punjab government, which means they have another INR 56 crores of receivables which is equivalent to around 2 quarters, 6 months payable. I'm wondering where the 6 months payables is coming from?
Well, it's not a 6 months payable. We have a network of global subsidiaries, who are billed on delayed basis for the services provided. So this is practically if you take out -- out of INR 176 odd crores, if you take out INR 120 crores, only INR 50 odd crores is pending, which is about the -- So I think I hope you've -- and this has been our business model, the money is billed on the end of the month, but it is received 15 days after that. So whatever was billed on the month of March will be received in April and so on and so forth.
Okay. That's fine. Then last question is regarding the EBITDA margins. If I calculate the margin for quarter 4, I get a margin of around 11% -- 10% or 11%. While the EBITDA margin for fourth quarter, FY '18 was around 17%, so I'm trying to understand what result -- what has resulted in such a steep decline in EBITDA margins. Now I understand that the U.K. business is ramping up and the U.K. business would be a part of that, but is that the major portion? Or is the major portion coming from somewhere else?
If you look at the results that we have outlined in point number 5, during the fourth quarter, there has been a [indiscernible] of profit of INR 7.11 lakhs. So 7 -- INR 7 crores from the full Punjab contract. And INR 4.54 lakhs -- INR 4.54 crores, so close to about INR 11 crores is a one-time expense on moving out the old Punjab contract as well as around 5 -- INR 4.5 crores, which are startup expenses or, so to say, expenses, which are more initial in nature and one-time in nature on U.K. So this has dragged down the profitability or EBITDA percentage. I think from next quarter onwards you will see same -- similar EBITDA percentages or margins.
Okay. So somewhere around 17%, 18% from quarter onwards?
Yes. Yes.
The next question is from the line of [ Kanhaiya ] who is an individual shareholder.
I am sorry. I may have missed [indiscernible] asking questions and waiting for the answer again also. Sales on a standalone basis for the last 5 quarters seems to be stagnated, I guess that's only in India, right?
Yes.
And the net profit is out in the last 4 quarters, consolidated other expenses are up by INR 50 crores. Is it roughly -- I'm just trying to understand if there is some kind of -- the issue -- the clarity of projections is not there. Now when clarity is not there, you don't know which way we are heading. And we are not sure of how this profit is going to start rising again. We are not sure of how sales are going to start rising again. If you do not have certain idea put out, could you just elaborate a little bit, if I'm clear?
Yes. So if you look at last year as a whole, this year has been a consolidating year for us. In January last year -- in January FY '18 -- in January 2018, the Punjab news came in. And because of that there was substantial loss of revenue to the tune of INR 120 crores. That INR 120 crores has been added by other contracts and other -- which have -- or increasing our credit -- contracts as well. So if you look at it apart -- if you take out Punjab on year-on-year basis so around INR 150 crores of -- around INR 120 odd crores of revenue has been added. So there's growth certainly on cards. Also what has happened last year is that we have shaved off close to INR 130 odd crores of liabilities from our books. If you see on FY '19 March ending, our net liability has 2 outside borrowers, it has come down to almost 0, even creditor. So this has been a highly consolidating year for us because of 1 major contract going out of the window. But we've come out of it stronger. There's no loss of any money, receivables on part of Punjab government, all our monies are coming in. And our net-cash position has increased by almost INR 80 crores to INR 100 crores. So I think this year has been a good consolidating year for us. Going forward, we have already bagged the U.K. contract and few other contracts, which will provide at least 15% to 20% of top line growth from here on onwards. And as already indicated that we have -- we are in final stages of negotiating some few other contracts, which has been announced in Q1, or hopefully Q1 or max by Q2. So that means we have another substantial growth. So I think 15% to 20% overall growth on year-over-year basis for the top line and as well as the bottom for this year at least is given with us present contracts as well. And I think the cash position and the net -- debt free position is a appreciating scenario from last year's balance sheet, which I think has been a plus for this -- for us this year.
No. Of course, and you can see that through the figures there and the numbers where its impairment is not there...
I think if you've been following for the past 4, 5 years of very high growth. So if you are aware, every company needs to consolidate its growth in -- up to 4, 5 years and recalibrate so that we are able to digest the next wave of growth. Otherwise, if we keep running and not consolidate our present situation on ground then -- yes, definitely, we have let go of some opportunities, which we could have factored, which could have taken off, but it's better to consolidate and then move upwards on this. And I think as the balance sheet shows very clearly, we are in a very good strength position as a INR 100 crore, INR 105 crores net cash position -- the net profit position and 0 debt on the books and almost the liability is shaved off by another INR 100 crores, INR 110 crores. So I think we are in a good situation. And again happy the company consolidate from there.
And I get that. And of course I see the effects -- efforts are there. It's just that with a little bit projections and the direction. Just a few specific questions, consolidated other expenses, up by INR 50 crores, what's the other expenses' concentrate?
Other -- all the expenses that -- in fact now that we've started U.K. government contract, all the expenses on the U.K. government close to around INR 35 odd crores has been added on this. And the other...
[indiscernible] and other expenses? Not on the operational expenses.
It isn't apart from the direct costs, such as the government fees it could may be in a paid on other business or the other direct employee cost, or some other contractual cost that go out on a broad basis.
The [ operator ] billed us for consultancy expenses for U.K., we have done some [indiscernible] when our team went in so they had to be stationed there for a couple of months, so all those expenses are included in this.
Other expenses.
All right, then. So it's more related to the new, startup operations?
Yes.
Okay. Goodwill on balance sheet, suddenly INR 800 lakhs added, property planned assets are also...
It is the acquisition of the company, the goodwill has come from that acquisition.
So -- okay. You've factored that. Sorry, I am not a very finance-oriented person so just asking. And intangible assets, what's intangible assets gone up to INR 20 crores?
We have invested in softwares. Our primary assets are softwares.
Okay. One last question. Growth, would you hazard -- I know you told me 15%, but would you hazard based on some expectation of new contracts in the top line, bottom line? And second, it's a changing world with a lot of IT, like you said, our systems are very important to this. But besides this, they actually impact your -- the top line and the bottom line growth in a most esteemed manner. Is there something else being considered or some other related operations being looked at?
Sorry. We don't get your question. I've been...
I think the question -- our...
I think one -- Sorry. First one is, would you hazard against in your revenue and profits for the year including adding new contracts. I know you have set about 10% to 15% based on the current order and I'm sure you are not only -- you are not -- you are looking at some other further orders expected, which would be close to finalization, hopefully finalized soon, so they would be adding to our top line also. Would you be able to get a figure if, let's say, year-on-year we are looking including these new contracts which come in at least a growth of so much? And the second part is, the business part itself, how to have a clearer sense of what -- of our growth track besides doing what we are as a company today, related operationally, anything else is being considered?
Correct. So the second part of your question, regarding what else is being considered. See, let me tell you the results in the market is -- itself, it's very big, globally. We have -- I see that we have not even scratched the surface right now. We have only became eligible in the last few years from all the global tenders that are coming up now for renewal from our competition. And we have done a study, all these governments are still coming out for next -- at least 3, 4 years that we have a horizon of all these governments intend to come out with a tender again for next 5 to 7 years. So that is one thing that we feel that we should not really diversify or maybe we should not get distracted by new lines of business, when we know our Visa business itself can give us very good, high potential return of revenue. At the same time, we are a government to -- or citizen service provider, so we are looking at the new -- like the new Punjab contract, wherein we get upfront money from citizens. So we are talking to a lot of governments, even abroad and even in India, even in local and city departments of the -- of state governments, wherein we can implement the same kind of model wherein we get an upfront payment. So I think for us, right now, even in spite of the new changes in technologies that we are actually going in and adopting better than our competition, I think that the growth potential for next 10 to 15 years in this industry is very high. And we are really bullish on that. And I think we don't want our team to get distracted in different levels of work, we want to concentrate what our core advantages are.
Got it now. Okay. And the first part?
Yes. And the first part, see, we know that from the existing -- we want to achieve whatever we say. So as we have told you that these contracts are, for example, the contracts with the U.K. government that we have won, is the contract that is at a very big scale. We are taking biometrics on behalf of the government, it is not a contract that we can just start overnight and it will run successfully. So we want to stabilize everything and then we know money is there at the end. So that is the reason that even the contracts got 2 or 3 months delayed in terms of implementation because we had to make everyone happy, all the stakeholders would -- should have been happy. That is all we're targeting, around 15% to 20% growth from the existing business itself. And we know for a fact that there are new tenders that we have already bid for, while some tenders will result we have in the financial sheets, some tenders that we know we will bid for and the results are coming in next 2, 3 months, so we feel that extra growth will come from them.
[Operator Instructions] The next question is from the line of [ Rajesh Agarwal ] from Money Whole Investments Advisory.
Sir, I have 2 questions, sir. One, how much of the outsource industry was from Punjab, as on the year-end? And currently? And secondly, also...
INR 118 crores and currently INR 95 crores.
Currently INR 95 crores. And the rest you saw in the old businesses?
Yes.
And, sir, when will that money get adjusted from Punjab, how much?
We -- I guess the [indiscernible] that they'd been paying was about INR 25 crores a quarter. So -- and that maybe we should recover over the next 1 year.
One year. And sir, second question, how is the bidding pipeline? And when will the growth come back to double-digit, 20% plus?
The bidding pipeline is moving strong. I think our team will always believe the tender team, we are increasing our bidding team. And we feel that this year itself I think growth, we are working very hard and I feel that we want to give a proper growth and this year the growth should bump, 15% to 20%, double-digit growth.
And the margins from the [indiscernible] this quarter they'll have some one-off, so the margins of 17% and 18% in September?
Yes.
[Operator Instructions] Sir, no further questions. I'd like to hand the conference back to Mr. Vinay Pandit for closing comments.
Yes. Sir, would you like to give some closing comments if there are no further questions?
Yes. Gentlemen, thank you very much for your active participation and on the funding of our business. And we look forward to similar participation in future. Thank you all.
Thank you very much. On behalf of Asian Markets Securities, that concludes the conference. Thank you for joining us, ladies and gentlemen. You may now disconnect your lines.