BLS International falls amid escalating tensions between India and Canada

BLS International's stock in focus: Shares of BLS International, visa consultancy services provider, dropped nearly 3 per cent to reach an intraday low of Rs 262.40 per share. 

The decline followed the suspension of visa services in Canada by the government of India, citing 'operational reasons' amid escalating tensions between Canada and India.

BLS International, in an exchange filing said, “Due to operation reasons, with immediate effect, September 21, 2023, Indian visa services in Canada have been suspended till further notice. The impact of this move is negligible on our financials as the Canadian visa issuance business contributes less than 2 per cent to BLS International’s total annual revenue.”

As of 1:12 pm, BLS International's shares traded 2.50 per cent lower at Rs 262.25 per share. 

“Amid diplomatic tensions between India and Canada, BLS International, which manages visa application services in Canada, has temporarily halted its services. Consequently, BLS International's stock price experienced a decline today. Considering this development, investors should exercise vigilance and closely monitor the stock's performance in the upcoming days and weeks to understand its response to this news. It's reasonable to anticipate some degree of volatility in the stock price as market sentiment adjusts to the evolving situation,” said Edul Patel, CEO & Co founder, Mudrex.

Despite this recent dip, the stock had been performing well, showing a year-to-date increase of over 53 per cent.

BLS International has a market valuation of Rs 10,917.31 crore, with a 52-week high of Rs 302 per share and a 52-week low of Rs 130.50 per share.

In terms of financial performance, the company reported a whopping 131 per cent increase in profit after tax (PAT) for June quarter at Rs 71 crore, compared to Rs 31 crore in the same period the previous fiscal year. 

Its operational revenue also saw substantial growth, which came in at Rs 383.5 crore in Q1 FY24, a 40.5 per cent increase from Rs 272.8 crore in Q1 FY23. This growth was primarily driven by a strong recovery in visa application volumes and value-added services. 

The company's Operating Profit (EBITDA) soared to Rs 80.05 crores in Q1 FY24, marking a more than 150 per cent increase from Rs 31.5 crore in Q1 FY23. Notably, BLS International remains debt-free and held Cash & Cash Equivalents of Rs 642 crore during the June quarter.