AGS Transact Technologies (AGSTRA) Q4 21/22 earnings summary

Executive summary

• FY22 revenue from operations was broadly stable YoY; Omicron-related ATM outsourcing disruption, higher financing costs and one-off expenses contributed to a consolidated net loss.

• Scale reached ~465,000 customer touchpoints across ~2,200 cities and towns, including 73,217 ATMs and CRMs under managed or serviced arrangements.

• Growth priorities include expanding Ongo and Fastlane, increasing outsourced ATM/CRM deployments, and monetising the PoS network through merchant services and value-added services.

Financial highlights

• Consolidated revenue from operations was ₹17,718.72 million vs ₹17,589.44 million in FY21; total income was ₹17,972.65 million vs ₹17,971.52 million.

• Consolidated reported EBITDA was ₹4,362.99 million vs ₹4,767.60 million; adjusted EBITDA was ₹4,790 million vs ₹4,796 million, excluding non-recurring and non-cash expenses.

• Consolidated net loss was ₹824.68 million vs profit of ₹547.92 million; diluted EPS was negative ₹6.93 vs ₹4.55 in FY21.

• Standalone revenue from operations was ₹13,170.19 million vs ₹13,731.09 million; standalone net loss was ₹886.24 million vs profit of ₹700.87 million.

• Consolidated finance costs increased to ₹2,502.09 million from ₹1,330.62 million; impairment on trade receivables was ₹118.76 million and ESOP expense was ₹113.25 million.

Outlook and guidance

• Near-term priorities are scaling digital payments, adding merchants to Ongo, and expanding value-added services including Cash @ PoS, loyalty, coupons and bill payments.

• Opportunities include bank ATM/CRM outsourcing, e-lobby operations, cassette swapping, Digital Banking Units and interoperable UPI-based cardless ATM withdrawals.

• Management expects ATM/CRM demand and cash transactions to grow, and views diversified revenue streams and multi-year service contracts as supports for predictability.

• Management expects sufficient operating cash flow and undrawn credit facilities to meet obligations, with asset acquisitions expected to be financed through debt.