Protean eGov Technologies (544021) Update / Briefing Transcript

Summary of Protean eGov Technologies Conference Call Company Overview - Company: Protean eGov Technologies - Industry: Digital identity services in India, specifically related to Aadhaar Key Points 1. Contract Announcement: Protean secured a landmark contract worth ₹13.70 crores (approximately $1.65 million) from UIDI to establish and run Aadhaar Seva Kainzas in 188 districts across India [1][2][4] 2. Project Scope: The project involves managing front-end activities related to Aadhaar enrollment, biometric and demographic updates, and other services, which are essential for UIDI's mission to provide unique identities to Indian residents [2][3] 3. Duration and Operations: This is a six-year engagement where Protean will manage the complete setup and daily operations of the Aadhaar services [3][5] 4. Market Size: Aadhaar is the largest biometric identity platform globally, serving 1.4 billion Indian citizens, which is more than the combined populations of North America and Europe [4] 5. Revenue Model: Revenue will be recognized on a per-transaction basis rather than as a fixed project fee, with expectations of even revenue spread throughout the contract period [14][34] 6. Potential for Expansion: The current contract covers 188 districts, which is only 70% of the total districts in India, indicating potential for future growth and additional revenue opportunities [12][50] 7. Transaction Pricing: The average transaction fee is estimated to be around ₹105-110, but specific rates are confidential [20][37] 8. Payment Flow: Funds will be collected by UIDI and then paid to Protean on a monthly basis based on transaction volumes [23][34] 9. Cost Structure: Major costs include setting up centers, hardware, and manpower [24][25] 10. Competitive Landscape: Protean is one of two main players (alongside BLS International) in this contract, with exclusive rights to certain districts [66][67] 11. Revenue Expectations: The project is expected to contribute approximately ₹190 crores (around $23 million) in revenue annually, with a significant impact on EBITDA [101][105] 12. Operational Timeline: Revenue from this project is anticipated to start contributing to the P&L from Q3 2025 [78] Additional Insights - Historical Context: The contract replaces previous operators, indicating a shift in service provision for Aadhaar services [56][58] - Future Considerations: The project may be renewed after six years, but specifics are uncertain [80][81] - Service Continuity: Other services related to Aadhaar will continue to be available through post offices and banks, ensuring accessibility for citizens [88][90] This summary encapsulates the critical aspects of the conference call, highlighting the strategic importance of the contract for Protean and its implications for the digital identity landscape in India.