Conference Call with AGS Transact Technologies Management and Analysts on Q2FY25 Performance and Outlook. Listen to the full earnings transcript.
Internet Software & Services company AGS Transact Technologies announced QH1FY25 & 2FY25 results Q2FY25 Financial Highlights: Total income stood at Rs 3,681 million. EBITDA stood at Rs 1,047 million; EBITDA margin stood at 28.4%. PAT stood at Rs 152 million. Revenue from Services accounted for 87.6% of the Revenue from Operations comprising Payment Solutions (Cash and Digital) – 81.4% and AMC Services and upgrades – 6.2%. Segment mix: Payment Solutions – 81.4% (Cash – 67.4% and Digital – 14%), Banking Automation Solutions – 17% and Other Automation Solutions – 1.6% H1FY25 Financial Highlights: Total income stood at Rs 7,197 million. EBITDA stood at Rs 2,100 million; EBITDA margin stood at 29.2%. PAT stood at Rs 290 million. Revenue from Services accounted for 90.5% of the Revenue from Operations comprising Payment Solutions (Cash and Digital) – 84.1% and AMC Services and upgrades – 6.4%. Segment mix: Payment Solutions – 84.1% (Cash – 67.5% and Digital – 16.6%), Banking Automation Solutions – 14.7% and Other Automation Solutions – 1.3%. Other Highlights: Commenced issuance of zero-KYC National Common Mobility Card (NCMC) as per updated RBI guidelines, at Chennai Metro and Bangalore Metro. This is in addition to the min. KYC NCMC being issued with RBL Bank. Total ~ 60,000 NCMCs issued to date. Onboarded 2000+ fleet vehicles in the pilot of open-loop contactless fuelling solution on Ongo app. Strengthened security measures across 26,000+ ATMs in its network as per the latest security upgrades released by GMV, a Europe-based global leader in advanced technology solutions. Commenced Implementation & Management of Prepaid Card Platform for IndianOil’s Flagship ‘XtraPower’ Fuel & Fleet Management Program, with an Order Value of Rs 58 crore Over Five Years. Successful renewal of contract from Indian Bank for reconciliation of card and digital transactions. The company will earn a projected revenue of Rs 50 crores over a period of 3 years. Ravi B. Goyal, Chairman and MD, AGS Transact Technologies Limited said: “We are pleased to report a consistent performance during this financial year with both quarters delivering healthy EBITDA and PAT margins. In Q2FY25, our total income stood at Rs 3,681 million with an EBITDA of Rs 1,047 million and PAT of Rs 152 million. In the first half of the year, our total income was Rs 7,197 million, EBITDA Rs 2,100 million, and PAT 290 million. As India’s payments landscape rapidly evolves, AGS Transact Technologies is well-positioned to lead this transformation. Our Ongo ecosystem taps niche opportunities like the growing mobility payments space, where initiatives like ‘Ongo Ride’ a zero-KYC, instant NCMC solution – present a great potential to benefit from the projected metro ridership growth to 12 million. Furthermore, Ongo’s fuelling solution has gained traction with over 2,000 fleet vehicles now onboarded in the pilot phase. Our co-branded prepaid program provides Ongo users with a safer and more convenient payment experience across travel and retail touchpoints. Parallelly, the ATM segment also shows promise with the expansion of bank branches and RFPs. A recent media report indicates the country’s largest PSU considering outsourcing around 10,000 onsite ATMs, underscoring a positive trend in the industry. As digitalisation shapes banking, trends like Digital Banking Units, UPI integration, Cash Recycler Machines (CRM), and cassette swapping present new revenue streams, which will further strengthen our cash payments portfolio. Looking ahead to the second half of FY25, we are focused on sustaining growth momentum and exploring strategic collaborations solidifying our leadership in omnichannel payments.” Result PDF