The shares of this small-cap IT company surged more than 9 percent after reporting an increase in net profits by over 335 percent YoY, according to its Q1 FY25 results.
Price Movement
On Friday’s trading session at around 9.30 am, the share price of this small-cap IT company reached an intra-day high of Rs.1,199.65 per share gaining more than 9 percent from its previous closing price of Rs.1,096.75 apiece.
How were the results
In the first quarter of FY25, Allsec Technologies Ltd. showcased impressive financial performance with a substantial increase in net profit. The company’s net profit surged by 335 percent year-on-year, reaching Rs.22.82 crores on a standalone basis, up from Rs.5.24 crores in the same quarter of the previous fiscal year. On a quarterly basis, the net profit grew by 96 percent from Rs.11.63 crores in Q4 of FY24.
Standalone revenue from operations rose by 5.17 percent to Rs.78.83 crores, compared to Rs.74.95 crores in the same quarter of FY24. However, revenue saw a decline of 6.3 percent from Rs.84.2 crores in Q4 of FY24.
Allsec Technologies Ltd. showed a favorable improvement in its financial ratios. The PAT margin surged to 29 percent in Q1 FY25, up from 7 percent in Q4 FY24.
The Return on Capital Employed (ROCE) stands at 30.64 percent, while the Return on Equity (ROE) is at 26.07 percent. Additionally, the company’s Price-to-Earnings (P/E) ratio is 27.08, compared to the industry average of 40.58.
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Revenue Segments
The company earns 73.29 percent of its revenue from the Customer Experience Management (CXM) segment and the remaining 26.71 percent from the Employee Experience Management (EXM) segment.
Management Commentary
Commenting on the results, CEO Mr. Naozer Dalal said, “We are pleased to report robust growth across Revenues, EBITDA & PAT YoY and expect to continue the same momentum into subsequent quarters. Focused efforts on revenue growth and an increase in the international mix to 62 percent aided in healthy operating margins. We also completed the divestment of our LLC business in this quarter”.
Shareholding Pattern
As per the shareholding pattern of June 2024, the Promoters hold a 73.39 percent stake in the company, Foreign Institutional Investors (FII) hold a 0.56 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 24.8 percent and 1.25 percent stake in Allsec Technologies Ltd., respectively.
About the Company
Allsec Technologies Limited is a third-party business process outsourcing company offering voice and non-voice services.
The Company provides inbound customer care and technology helpdesk services, and outbound sales, collections, and market research services. The Company also provides third-party quality assurance, human resources, and payroll processing services.
Written by – Siddesh S Rakar
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