Block Deal Alert: Rs 236 Crore of Protean eGov Tech Equity Changes Hands

Block Deal of Rs 236 crore 

On August 8, a significant transaction involving Protean eGov Technologies Ltd took place. In a block deal window, 12 lakh shares, representing 3.2% equity of the company and valued at Rs 236 crore, changed hands. While the official buyers and sellers of this transaction remain undisclosed, reports suggest that Standard Chartered Bank is likely a seller of a 3.09% equity stake in Protean eGov Technologies Ltd. Spark Institutional Equities is expected to act as the broker for this deal. As per BSE data, Standard Chartered held a 3.09% stake in Protean eGov at the end of the June quarter.

A Leader in IT-Enabled Solutions

Protean eGov Technologies Ltd is renowned for its role in conceptualizing, developing, and executing nationally critical and large-scale technology solutions. The company has collaborated extensively with the government to build digital public infrastructure and create innovative, citizen-centric e-governance solutions. This makes Protean a key player in the IT-enabled solutions sector in India.

Key Financial Highlights

Revenue and Profitability

For Q1FY25, Protean eGov Technologies reported consolidated revenue from operations of Rs 197 crore, marking an 11% year-on-year decline. This decrease was primarily due to a reduction in PAN card issuances, largely attributable to election activities during the quarter. However, the company’s Pension and Identity services continued to exhibit robust double-digit growth.

EBITDA and Margins

The company’s EBITDA for Q1FY25 stood at Rs 45 crore, with an EBITDA margin of 21.1%, up from 20.4% in Q1FY24, an increase of 64 basis points year-on-year. This improvement was largely due to an increase in online PAN card issuance and a continued focus on cost efficiencies.

PAT and Provisioning

Protean’s Profit After Tax (PAT) for Q1FY25 was INR 21 crore, with a PAT margin of 9.8%, down from 13.8% in Q1FY24, a reduction of 404 basis points year-on-year. The decrease in PAT margin was primarily due to an Rs 11 crore provision for doubtful debt. Adjusted for this provisioning, the PAT margin stands at 14.9% in Q1FY25, showing an improvement of 76 basis points year-on-year.

Financial Health

The balance sheet of Protean eGov Technologies remains robust, with over Rs 700 crore in cash equivalents and marketable securities and zero debt as of June 30, 2024. This strong financial position underscores the company’s stability and capacity for future growth.

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.