Allsec Technologies Shines with Strong Q4FY24 Results

The Indian stock markets started off on a positive note but soon slipped into negative territory as profit booking emerged at higher levels. The National Stock Exchange (NSE) benchmark Nifty 50 index fell below the 22,400 mark, down by 0.28%. Most sectors were trading in red, with only the Nifty FMCG sector showing gains, up by over 2.63%. Meanwhile, the top three losers were Nifty Realty (down by 0.78%), Nifty Financial Services (down by 0.74%), and Nifty Bank (down by 0.73%).

Selling pressure was more pronounced in the broader market indices, with the Nifty Midcap and Smallcap falling by 0.55% and 0.44%, respectively. Despite this generally negative backdrop, one stock, Allsec Technologies, stood out by bucking the market trend. The stock jumped 15%, reaching Rs 970.30, and even hit an upper circuit of 20% during early trading, with a 52-week high of Rs 1,011.35.

Allsec Technologies Bucks the Trend

The catalyst behind Allsec Technologies’ impressive performance is its strong Q4FY24 results. The company delivered its best-ever annual results, largely due to various initiatives it has been driving. Revenue and profits increased significantly, with EBITDA and PAT margins rising by 200 basis points to 24.6% and 110 basis points to 13.6%, respectively. FY24 revenue from operations grew by 20.2% year-on-year, driven by growth in both Customer Experience Management (CXM) and Employee Experience Management (EXM). The board also recommended a final dividend of Rs 15 per share.

Financial Performance QoQ and YoY

Key Highlights of Q4FY24

• Customer Experience Management (CXM)

The CXM segment recorded revenues of Rs 89.1 crore, up by 29.3% year-on-year and 10.4% quarter-on-quarter. The international business revenue stood at Rs 65.8 crore, up by 39% year-on-year and 13.3% quarter-on-quarter, while domestic business revenue was Rs 23.3 crore, up by 8% year-on-year and 2.8% quarter-on-quarter. The margin for this segment increased to Rs 13.3 crore, a jump of 77.2% year-on-year and 13.2% quarter-on-quarter. The full-time equivalent (FTE) count for CXM was 4,463, up by 9.5% year-on-year but down by 1.7% quarter-on-quarter.

• Employee Experience Management (EXM)

The EXM segment also showed growth, with revenue at Rs 40.6 crore, up by 4.0% year-on-year and 4.1% quarter-on-quarter. The EXM Payroll business revenue rose to Rs 32.9 crore, up by 13.1% year-on-year and 6.1% quarter-on-quarter. However, the EXM Compliance business revenue declined to Rs 7.7 crore, down by 22.6% year-on-year and 3.6% quarter-on-quarter. The margin for EXM stood at Rs 15.5 crore, a substantial increase of 47.7% year-on-year and 18.1% quarter-on-quarter. The FTE count for EXM was 865, up by 7.9% year-on-year but down by 2.7% quarter-on-quarter. The number of employee records processed increased to 39.7 lakh, up by 10.5% year-on-year.

Allsec Technologies’ Information

Allsec Technologies Limited, based in Chennai, has been a pioneer in the EXM and international CXM spaces. Founded in 1998, the company has grown into a global brand offering high-end business process solutions across key industry verticals in 40 countries. With approximately 5,400 employees across India, the Philippines, and the US, Allsec processes more than 3.8 million payslips each month for over 600 clients worldwide. The company’s SmartHR and SmartPay platforms use cutting-edge technology, including Robotic Process Automation (RPA), Smart Analytics, Chatbots, and Mobility, to provide enhanced employee engagement.

Despite the broader market’s negative performance, Allsec Technologies’ robust Q4FY24 results and consistent growth trajectory have made it a stock to watch in the coming months.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.