AGS Transact Technologies announces Q1FY24 financial results: Key highlights and performance overview

AGS Transact Technologies Limited (BSE: 543451 & NSE: AGSTRA), one of India‘s largest integrated omni-channel payment solutions providers, announced its unaudited Financial Results for the quarter ended June 30, 2023 (Q1FY24). The total income stood at Rs. 3,712 million, with Adjusted EBITDA at Rs. 920 million, and an Adjusted EBITDA margin of 24.2%. On the PAT level, a profit of Rs. 6 million was reported for Q1FY24.

Revenue Composition and Segment Breakdown

During the quarter, Revenue from Services accounted for 97.6% of Revenue from Operations, comprising Payment Solutions (Cash and Digital) at 87.1% and AMC Services and upgrades at 10.5%. The segment mix included Payment Solutions at 87.1% (Cash – 69.7%, Digital – 17.4%), Banking Automation Solutions at 10%, and Other Automation Solutions at 3%.

Key Achievements in Q1FY24

Key highlights during the quarter include receiving authorization from the RBI to issue co-branded prepaid cards in collaboration with partners, and winning an order of 1,350 ATMs for the country’s leading PSU bank, planned to be deployed in FY24.

Chairman’s Comments on Performance

Commenting on the performance, Ravi B. Goyal, Chairman and MD, AGS Transact Technologies Limited said, “The performance for this quarter has been muted, following a relatively subdued Q4FY23 impacted by external challenges and execution delays. In Q1FY24, our overall income derived from operations experienced a degrowth of 11% YoY on account of our strategy to move away from value-dilutive businesses. At the same time, our Finance costs have dropped by 6% QoQ.”

He continued, “We are constantly increasing our operational efficiency as a result of successful acquisition of a significant number of ATMs/CRMs under our Managed/Outsourced portfolio. We are expected to complete the integration of all 8,000 ATMs/CRMs won recently in the upcoming quarter. This extensive network will enhance our revenue streams and add to our reach and service capabilities. We are optimistic about securing additional contracts to expand our portfolio, which will in turn also provide synergy benefits for our cash management business.

“Overall, the demand for ATM/CRMs remains strong as evidenced by the fresh RFPs for outright sale of 15,000+ ATMs/CRMs floated by banks so far. Of this, we have already won an order of 1,350 ATMs from a leading PSU bank which will be strategically deployed during FY24.”

AGS Transact Technologies Limited, established in 2002, has been a key player in the Indian payment solutions sector, offering a variety of products and services, including ATM and CRM outsourcing, cash management, and various digital payment solutions. The Q1FY24 results reflect the company’s ongoing strategic efforts and robust performance in its core business segments.