05 September 2024
Total income for FY24 stood at ₹1509 Cr, reflecting a 12% decrease from the previous year. This decrease was primarily due to scaling down low-margin, capital-intensive businesses and focusing on service-based revenue streams. The company reported a net loss of ₹80 Cr, a decline compared to the profit of ₹37 Cr in FY23. The reduction in profitability was driven by strategic cost optimizations and a focus on high-margin services. Payment Solutions remain the largest contributor, accounting for 87% of total revenue, with 20% coming from digital payment services. Banking Automation Solutions and Other Automation Services contributed 10% and 3%, respectively.
Operational Developments:
AGS Transact Technologies continues to solidify its position as a leading integrated omnichannel payment solutions provider in India, catering to diverse sectors such as banking, petroleum, retail, transit, and fintech with its comprehensive range of digital and cash-based services.
Central to its growth is the omnichannel digital payment platform "Ongo," which has emerged as a major revenue driver by offering merchant acquiring and issuance services, including Point of Sale (POS) solutions and open-loop prepaid products.
Strategically, the company has secured significant contracts, including ₹1,100 crore, a seven-year deal with the State Bank of India for deploying over 2,500 ATMs, and an additional order for 1,350 ATMs under the banking automation segment.
With a strong presence in 2,200 cities and towns across India, AGS is also expanding internationally into Southeast Asian markets such as Singapore, Cambodia, Indonesia, the Philippines, and Sri Lanka. The establishment of a 14,000 sq. ft. cash vault facility in Bengaluru further enhances its cash management services.
The company’s commitment to innovation is evident in its launch of a voice-controlled fuelling system with AI on the Ongo app, enhancing user experience in the petroleum sector, and pilot testing ATM cash withdrawal facilities on its Prepaid Payment Instrument (PPI) platform.
Emphasizing digital transformation, AGS has issued over 50,000 National Common Mobility Cards (NCMCs) for Bangalore Metro and introduced the instant NCMC ‘Ongo Ride’ at Chennai Metro, offering seamless, KYC-free commuting. Furthermore, AGS is actively expanding its digital payment portfolio through strategic partnerships for co-branded prepaid cards, demonstrating its dedication to driving digital innovation and enhancing customer convenience.
Outlook and Future Strategies:
AGS is optimistic about the future, aiming to leverage the growing digital payments ecosystem in India. It plans to enhance its service offerings, expand its PPI infrastructure, and explore new opportunities in the fleet-fuelling market, which has a potential value of ₹1.6 lakh Cr.
