Hot Pursuit     27-Nov-23
CRISIL revises AGS Transact's outlook to 'negative'; reaffirms 'A+' rating
AGS Transact Technologies (AGS) said that CRISIL Ratings has revised its outlook on the long-term bank facilities of the company to 'negative’ from 'stable’ while reaffirming the rating at 'CRISIL A+’.

The credit rating stated that the revision in outlook reflects only limited improvement in the debt protection metrics of AGS, compared to expectations, with debt levels continuing to be high due to slow recovery in receivables.

The rating continues to reflect healthy business risk profile of AGS, driven by its established market position in the ATM managed services industry, increasing presence in digital payment solutions and longstanding association with customer banks. The rating is also supported by adequate operating efficiency, which ensures steady cash generation.

These strengths are partially offset by average financial risk profile, large working capital requirement and risk of proliferation of digital payments in the long term, leading to stagnancy in demand for ATMs in the domestic market.

"Recovery in pending receivables will be critical to ensure sustained improvement in debt protection metrics and financial risk profile over the medium term, as cash accrual will only suffice to meet repayment obligations and a part of the capex; this will remain a key monitorable,” CRISIL said in a statement.

AGS Transact Technologies is one of India’s leading providers of end-to-end cash and digital payment solutions including customized solutions serving the banking, retail, petroleum and transit sectors. Operations covered approximately 2,200 cities and towns, servicing about 4,90,000 machines or customer touch points across India, as of 30 September 2023.

The company has reported a consolidated net loss of Rs 60.90 crore in the quarter ended September 2023 as against net profit of Rs 20.67 crore during the previous quarter ended September 2022. Sales declined 8.96% to Rs 376.54 crore in Q2 FY24 as compared with Q2 FY23.

The scrip had lost 0.86% to end at Rs 88.37 on the BSE on Friday.

Domestic equity markets are shut today on account of Guru Nanak Jayanti.

Previous News
  AGS Transact Technologies consolidated net profit rises 400.48% in the September 2022 quarter
 ( Results - Announcements 10-Nov-22   08:04 )
  Novus Technologies plans to raise funds
 ( Corporate News - 21-Dec-23   14:19 )
  AGS Transact Technologies IPO ends with decent subscription
 ( IPO Centre - IPO News 24-Jan-22   10:26 )
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 ( Corporate News - 01-Sep-23   13:47 )
  AGS Transact Techs. to convene board meeting
 ( Corporate News - 31-Oct-23   17:42 )
  AGS Transact Technologies receives revision in credit ratings
 ( Corporate News - 11-Apr-23   19:17 )
  Board of AGS Transact Technologies approves change in directorate
 ( Corporate News - 30-Mar-23   12:53 )
  AGS Transact Techs. to convene board meeting
 ( Corporate News - 28-May-24   14:34 )
  AGS Transact Technologies to conduct board meeting
 ( Corporate News - 20-Jul-22   14:04 )
  AGS Transact Technologies reports consolidated net loss of Rs 15.38 crore in the December 2023 quarter
 ( Results - Announcements 08-Feb-24   07:29 )
  AGS Transact Technologies
 ( IPO Centre - New Issue Monitor 18-Jan-22   12:56 )
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