AGS Transact Technologies posts solid performance in Q2 and H1FY25 with robust growth

AGS Transact Technologies Limited (BSE: 543451, NSE: AGSTRA), a significant player in India’s payment solutions sector, reported a consistent financial performance for Q2 and H1FY25. The company’s unaudited financial results for the quarter and half-year ended September 30, 2024, indicate substantial revenue growth coupled with solid profit margins.

AGS Transact Technologies’ total income for Q2FY25 reached INR 3,681 million, underpinned by a strong EBITDA of INR 1,047 million, equating to a 28.4% EBITDA margin. The company recorded a net profit (PAT) of INR 152 million for the quarter. In the broader H1FY25 period, total income surged to INR 7,197 million with an EBITDA of INR 2,100 million and PAT of INR 290 million, showcasing a stable performance trajectory.

The revenue composition for Q2FY25 revealed that services, primarily from payment solutions (encompassing both cash and digital), represented 87.6% of the total revenue. Payment solutions alone accounted for 81.4% of revenue, segmented into cash (67.4%) and digital (14%). In H1FY25, the revenue from services rose to 90.5%, with payment solutions leading at 84.1%.

The company expanded its service portfolio by introducing the issuance of zero-KYC National Common Mobility Cards (NCMCs) in Chennai and Bangalore Metros, aligning with updated RBI guidelines. This launch follows the minimum KYC NCMCs provided in partnership with RBL Bank, with over 60,000 cards issued to date. AGS Transact also initiated a pilot for an open-loop contactless fueling solution via the Ongo app, which currently supports more than 2,000 fleet vehicles.

Mr. Ravi B. Goyal, Chairman and MD of AGS Transact Technologies Limited, highlighted the company’s strategic growth initiatives, noting that AGS is well-positioned to leverage the evolving Indian payments landscape. Goyal mentioned the ongoing success of Ongo’s mobility payments initiatives, the uptake of the fuelling solution, and the company’s enhanced ATM network security measures as positive indicators of sustainable future growth.

Industry experts recognize AGS Transact’s ability to stay ahead with innovative solutions tailored to emerging trends. With initiatives such as the Ongo Ride’s zero-KYC NCMC and an expanded fleet service pilot, the company is seen as aligning well with the country’s projected increase in metro ridership and the demand for contactless payment options.

The company also secured an order for managing IndianOil’s flagship ‘XtraPower’ prepaid card platform, valued at INR 58 crore over five years. Another significant win was the renewal of its reconciliation contract with Indian Bank for card and digital transactions, estimated to bring in revenue of INR 50 crores over three years.

Goyal underscored AGS Transact’s focus on sustaining growth through strategic collaborations and tapping into new revenue streams, including ATM outsourcing and digital banking units. The integration of digital solutions such as Cash Recycler Machines (CRMs) and cassette swapping is expected to bolster the company’s cash payments portfolio.

Founded in 2002, AGS Transact Technologies Limited is among India’s top omni-channel payment solution providers, servicing sectors like banking, retail, petroleum, and fintech. Through its flagship Ongo platform, the company continues to diversify its service offerings to include comprehensive digital and cash-based solutions.