Shares of this outsourcing solutions company locked 20 percent upper circuit in Tuesday’s trading session after announcing an increase in net profits by 84 percent QoQ. The stock has delivered a multibagger return of 110 percent in one year to its shareholders.
With a market capitalization of Rs. 1,505 crores, the shares of Allsec Technologies Ltd started Tuesday’s trading session on a higher note at Rs. 935.10 compared to its previous close of Rs. 842.80. During the trading session, the shares clocked 20 percent upper circuit at Rs. 1,011.35 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced quarterly and financial year ended 31st March 2024 results. The revenue increased by 8 percent from Rs. 119.79 crores during the December quarter to Rs. 129.71 crores in the March quarter. In addition, the net profits magnified by 84 percent from Rs. 11.26 crores to Rs. 20.73 crores during the same period.
Comparing these metrics on a YoY basis, the revenue zoomed by 20 percent from Rs. 107.98 crores during Q4FY23 to Rs. 129.71 crores in Q4FY24. On the other hand, the net profits surged by 71 percent from Rs. 12.12 crores to Rs. 20.73 crores during the same timeframe.
Furthermore, the customer experience management businesses grew by 29.3 percent YoY to Rs 89.1 crores and employee experience management segments grew by 4 percent YoY to Rs 40.6 crores during the same period. EBITDA jumped 43.3 percent YoY to Rs. 35.2 crores, with a margin expansion of 440 bps at 27.2 percent for the quarter.
Additionally, the Board of Directors have recommended a final dividend of Rs. 15 per equity share of face value of Rs. 10 each for the financial year 2023-24, which is subject to the approval of shareholders.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 15.02 percent during FY 21-22 to 22.25 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 22.89 percent to 25.89 percent during the same timeframe. Furthermore, the net profit margin increased from 11.24 percent during FY21-22 to 12.51 percent during FY22-23.
Headquartered in Chennai, Allsec Technologies is a third-party business process outsourcing company that offers voice and non-voice services, including inbound customer care, technology helpdesk services, outbound sales, collections, market research, quality assurance, human resources, and payroll processing services.
Written By Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
