Ags Transact Technologies Ltd. · NSE:AGSTRA
Ags Transact Technologies — Q2 FY24 Earnings Presentation
33 slides from Ags Transact Technologies's earnings presentation, Nov 6, 2023
Slide 1: Regulation 30 intimation cover letter
November 6, 2023 To, To, BSE Limited, National Stock Exchange of India Limited, Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Fort, Bandra Kurla Complex, Bandra (East), Mumbai – 400001 Mumbai - 400051 BSE Scrip Code: 543451 NSE Scrip Symbol: AGSTRA Sub: Intimation under Regulation 30 of t
Slide 2: Investor Presentation November 2023
Investor Presentation November 2023
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by AGS Transact Technologies Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 4: Q2 & H1 FY24 Performance
Q2 & H1 FY24 Performance Transact Technologies Ltd.
Slide 5: Management Commentary
Management Commentary “During the quarter, we reported total income of Rs 3,886 with adjusted EBITDA margin of 24.1%. In Q2FY24, our revenue from services increased to 98% in line with our strategy to move away from value- dilutive businesses. During this semi-annual period, we have conservatively t
Slide 6: Performance Highlights – Q2 & H1 FY24
Performance Highlights – Q2 & H1 FY24 ₹ Mn Total Income Adj EBITDA PAT 29.4% 27.1% 24.1% 4.9% 0.2% -15.7% • In Q2FY24, the total income decreased by 2% on QoQ basis 4,206 1,235 • In Q2FY24, Adjusted EBITDA witnessed 3,794 207 3,886 1,030 Q1FY24 Q2FY24 a decline of 24% YoY, 938 6 Q2FY23 Q2 FY24 • Adj
Slide 7: Consolidated Statement of Profit and Loss
Consolidated Statement of Profit and Loss (In ₹mn) Q2FY24 Q2FY23 YoY Q1FY24 QoQ H1FY24 H1FY23 YoY Revenue from operations 3,765 4,136 3,712 7,477 8,311 Other income 121 70 82 203 166 Total income 3,886 4,206 -8% 3,794 2% 7,680 8,478 -9% Expenses Cost of raw materials and components consumed 412 667
Slide 8: Adjusted EBITDA and PBT Bridge
Adjusted EBITDA and PBT Bridge (In ₹mn) Q2FY24 Q2FY23 Q1FY24 Reported EBITDA 195 1158 914 Add: ESOP Expenses 7 21 5 Add: Non-recurring items Loss allowance on trade receivables 450 56 - Commitment Fee 285 - 110 Forex Loss due to devaluation of currency of Sri Lanka - 1 - Adjusted EBITDA 938 1,235 1,
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet (In ₹mn) Sep-23 Mar-23 (In ₹mn) Sep-23 Mar-23 Non-current assets Equity and liabilities Property, plant and equipment 4,798 4,975 Equity Right – of – use Asset 2,427 2,619 Equity share capital 1,205 1,205 Capital work-in-progress 292 345 Other equity 3,574 4,146 Goodwill 2
Slide 10: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement (In ₹mn) September 2023 September 2022 (A) Cash flow from operating activities Net restated profit/(loss) before tax -702 512 Adjustments: 2,155 1,853 1,453 2,365 Changes in working capital : Decrease / (increase) in inventories 69 -167 (Increase) / decrease in trade
Slide 11: Company Overview
Company Overview – Divider Slide Company Overview 10
Slide 12: Company Snapshot
Company Snapshot Three Major business Segments: 1) Payment Solutions Omni-channel Ongo & Fastlane Business One of the largest Built digital payment solutions - Ongo & Fastlane; integrated omni-channel Overview payment solutions One of the largest providers catering to deployers of POS terminals bank
Slide 13: Journey / Key Milestones
Journey / Key Milestones Slide Incorporated AGS Transact • Started manufacturing of • Entered into a cooperation • Introduced currency Technologies Limited paint dispensers at Daman agreement with Diebold technology solution under • Established relationship Nixdorf for banking and the brand ‘Genuine
Slide 14: Integrated Omni-Channel Payment Solutions Provider
Integrated Omni-Channel Payment Solutions Provider Preferred partner for cash and digital payment solutions End-to-end cash and digital payment solutions and technology provider with a dominant presence across India (As of H1FY24) 1 ATM & CRM Outsourcing / Management 37,616 ATMs, including 8,247 Cas
Slide 15: Omni-Channel, end-to-end Payments Solutions Provider
Omni-Channel, end-to-end Payments Solutions Provider Managed Services (MSP) Independent Deployment (IAD) 1 2 3 4 5 6 7 8 9 10 Procurement, Daily Operations Cash Monitoring, Incident Second Line MIS, Dashboards & Profitability Switching/ Asset Site Selection Installation Management Management Managem
Slide 16: End-to-end digital payments platforms
End-to-end digital payments platforms Merchant Analytics application Loans Against Cash @ POS Vehicle Card Receivables / Micro-ATM Continue to monetise POS network At the Forecourt Insurance In the Sales Office to cross-sell VAS to merchants Expand Ongo ecosystem and provide a larger suite of VAS th
Slide 17: Business Lines – Cash/Digital, Banking & Other Automation
Business Lines – Cash/Digital, Banking & Other Automation Payment Acceptance Value Added Services (Device-based and device- Integrated Payments Merchant Application Loans Against Card less) Billing Software CUG Prepaid & Loyalty Solution (IPS) and Portal Receivables Banking Automation Solutions Othe
Slide 18: Operational Metrics
Operational Metrics Number of PoS Terminals GTV through POS ₹ Mn 247,623 252,497 246,813 236,588 2,200+ 291,711 207,335 205,718 171,809 Cities 111,773 118,845 142,751 35 81,962 Office Locations FY19 FY20 FY21 FY22 FY23 H1FY24 FY19 FY20 FY21 FY22 FY23 H1FY24 75+ Banking Partners Breakdown of ATMs & C
Slide 19: End-to-End Provider of Cash Payment Solutions
End-to-End Provider of Cash Payment Solutions In-House Cash Management Capabilities SVIL | Second largest cash management company in India, in terms of revenue from cash management and number of ATMs replenished1 M Services and Doorst Transit Se ssin g & Va ated Cash AT up in r ce ul dic Va h ep De
Slide 20: Way Forward
Way Forward Pivot from Payments-as-a-service to Continued Focus on ATM & Payments-as-a-convenience through CRM Outsourcing & Managed International Expansion Ongo Card & Ecosystem Services 1 2 3 4 5 6 Focus on Cash Management Grow Digital Payment Services (offer robust Enhanced Integrated Solutions B
Slide 21: Industry Overview
Annexures – Divider Slide Industry Overview 20
Slide 22: Fast Growing Digital Payments Industry
Fast Growing Digital Payments Industry Digital Payments growth momentum expected to continue Digital Payment Industry Transaction Volume of Cards (in Bn) Payments industry expected to be $106 Tn inflows and Transaction Volume of PPIs (in Bn) $50Bn in revenue terms in 2030 106.2 Debit Card Credit Car
Slide 23: Strong Growth in the Cash Payments Industry
Strong Growth in the Cash Payments Industry Despite growth of cashless transactions, people in India rely heavily on cash transactions Cash Payments Industry • Cash Transactions account for 89% of all transactions (FY22) Cash in circulation as a % of GDP* Cash withdrawal from ATMs back to PreCovid l
Slide 24: Historical Financials
Annexures – Divider Slide Historical Financials 23
Slide 25: Financial Metrics
Financial Metrics ₹ Mn Total Total Income Income Adjusted EBITDAEBITDA & EBITDA & EBITDA MarginMargin Adjusted Profit Before Tax & Margin 27.3% 26.7% 26.7% 28.7% 24.2% 6.8% 4.7% 4.8% 6.8% 2% 17,972 17,973 18,335 17,075 1,246 5,005 1,163 4,907 4,796 4,790 869 853 7,680 1,968 156 FY20 FY21 FY22 FY23 H
Slide 26: Segmental Performance
Segmental Performance ₹ Mn ₹ Mn Cash Payment Solution Revenues Digital Payment Solution Revenues Revenue from operations Breakdown 11,208 10,567 2,800 11,298 2,486 11,366 10,816 2,675 2,140 1,570 1,408 5,063 FY19 FY20 FY21 FY22 FY23 H1FY24 FY19 FY20 FY21 FY22 FY23 H1FY24 Banking Automation Solutions
Slide 27: Consolidated Statement of Profit and Loss
Consolidated Statement of Profit and Loss (In ₹mn) FY23 FY22 YoY FY21 Revenue from operations 16,713 17,719 17,589 Other income 362 254 382 Total income 17,075 17,973 -5% 17,972 Expenses COGS 1,782 2,281 2,630 Employee benefit expenses 2,328 2,547 2,749 Other expenses 8,058 8,355 7,797 Adjusted EBIT
Slide 28: Consolidated Balance Sheet
Consolidated Balance Sheet (In ₹mn) FY23 FY22 FY21 (In ₹mn) FY23 FY22 FY21 Non-current assets Equity and liabilities Property, plant and equipment 4,975 5,425 6,032 Equity Right – of – use Asset 2,619 3,210 3,207 Equity share capital 1,205 1,202 1,186 Capital work-in-progress 345 435 469 Other equit
Slide 29: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement (In ₹mn) FY23 FY22 FY21 (A) Cash flow from operating activities Net restated profit/(loss) before tax 575 (666) 824 Adjustments: 3,981 5,159 3,687 4,557 4,494 4,511 Changes in working capital : Decrease / (increase) in inventories (96) 48 (81) (Increase) / decrease i
Slide 30: Annexures
Annexures – Divider Slide Annexures 29
Slide 31: Board of Directors and Senior Management Team
Board of Directors and Senior Management Team • One of the Promoters of the Company Ravi B. Goyal • Responsible for the management of the overall operations of our Company and our Subsidiaries (Chairman & Managing Director) • Prior to establishing AGS, founded Advanced Graphic Systems, a proprietary
Slide 32: AGS Transact Technologies - Corporate Structure
AGS Transact Technologies - Corporate Structure Promoters and 65.52% AGS Transact Technologies Promoter Group Ltd. 100% 100% 100% Global Transact Services Pte. Ltd 90% Novus Technologies Pte. Ltd. India Transact Securevalue India Ltd. (Cash and Digital Payment Services Ltd. (Cash Management) Solutio
Slide 33: Thank You
THANK YOU AGS Transact Technologies Limited CIN: L72200MH2002PLC138213 Ms. Sneha Kadam Company Secretary & Compliance Officer Email id: companysecretary@agsindia.com Tel No: 022 - 71818181 Strategic Growth Advisors Pvt Ltd. CIN: U74140MH2010PTC204285 Shikha Puri / Aakash Mehta Email id: shikha.puri@
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