AGS Transact Technologies Ltd
NSE:AGSTRA
AGS Transact Technologies Ltd
AGS Transact Technologies Ltd. engages in the supply, installation, and management of technology-based automation products. The company is headquartered in Mumbai, Maharashtra. The company went IPO on 2022-01-31. The company provides customized products and services comprising automated teller machines (ATM) and cash recycler machines (CRM) outsourcing, cash management and digital payment solutions including merchant solutions, transaction processing services and mobile wallets. The company segments include Payment Solutions, which comprises of ATM and CRM outsourcing and managed services, cash management services, Intelligent Cash deposit (ICDs), digital payment services which include toll and transit solutions, Fastlane, transaction switching services, services through point of sale machines and agency banking; Banking Automation Solutions segment comprises sale of ATMs and CRMs, currency technology products and self-service terminals and related services and upgrades; and Other Automation Solutions segment encompasses the sale of machines and related services to customers in the retail, petroleum and color segments.
AGS Transact Technologies Ltd. engages in the supply, installation, and management of technology-based automation products. The company is headquartered in Mumbai, Maharashtra. The company went IPO on 2022-01-31. The company provides customized products and services comprising automated teller machines (ATM) and cash recycler machines (CRM) outsourcing, cash management and digital payment solutions including merchant solutions, transaction processing services and mobile wallets. The company segments include Payment Solutions, which comprises of ATM and CRM outsourcing and managed services, cash management services, Intelligent Cash deposit (ICDs), digital payment services which include toll and transit solutions, Fastlane, transaction switching services, services through point of sale machines and agency banking; Banking Automation Solutions segment comprises sale of ATMs and CRMs, currency technology products and self-service terminals and related services and upgrades; and Other Automation Solutions segment encompasses the sale of machines and related services to customers in the retail, petroleum and color segments.
Stable Margins: AGS Transact delivered healthy EBITDA and PAT margins in Q2 FY '25, despite flat to slightly lower revenue year-on-year.
Revenue Drivers: The company is shifting focus to its core segments: ATM, cash management, and digital payments, closing down non-core product businesses.
Digital Payments Growth: The Digital Payments segment contributed 14% of revenue, with the Ongo platform and National Common Mobility Card (NCMC) initiatives showing strong traction.
ATM Expansion Expected: Recent declines in ATM numbers are expected to reverse in upcoming quarters, with over 21,000 new ATMs and CRMs tendered by banks in H1.
Solid Cash Management: Securevalue, the cash management subsidiary, posted improved margins and revenue, benefiting from portfolio rationalization.
Receivables and Credit Risk: Trade receivables increased due to project timing, but management sees minimal credit risk as clients are largely banks and public sector undertakings.
Debt Reduction: Net debt declined slightly; ongoing repayments and improved working capital management expected to further reduce debt over time.
Guidance: Management expects revenue and ATM deployments to increase in H2, and aims to maintain current margin levels.
