On a consolidated basis, EBITDA stood at Rs 30.4 crore in Q3 December 2023, up 44.8% year-on-year (YoY) and up 19.7% quarter-on-quarter (QoQ). EBITDA margin was reported at 25.4% Q3FY24, higher than 22.6% in Q2FY24 and 21.0% in Q3FY23.
Operating cash flow (OCF) stood at Rs 33.3 crore in Q3FY24, higher than Rs 17.4 crore in Q2FY24, but lower than Rs 22.1 crore in Q3FY23.
Total expenses rose 13% to Rs 89.38 crore in Q2 FY24 over Q2 FY23. During the quarter, employee benefits expense was at Rs 66.93 crore (up 16% YoY).
The Customer Experience Management (CXM) vertical has seen a significant increase in revenue with a year-on-year rise of 21.0% and a QoQ increase of 8.8%, amounting to Rs 80.7 crore. The international business segment has demonstrated substantial growth, with revenue reaching Rs 58.0 crore, marking a 30.3% yearly and 9.2% QoQ upturn. Meanwhile, the domestic business sector has secured a revenue of Rs 22.7 crore, showing a 2.3% year-on-year increase and a 7.6% QoQ increase. The margin has also shown a remarkable improvement, reaching Rs 11.7 crore, reflecting a 34.6% yearly increase and a 35.0% QoQ increase. Moreover, the Full-Time Equivalent (FTE) has risen to 4,543, indicating a 9.9% yearly and 5.8% QoQ growth.
The Employee Experience Management (EXM) vertical has experienced a notable rise in revenue, demonstrating a 17.1% year-on-year increase and a modest 2.3% quarter-on-quarter (QoQ) rise, totaling Rs 39.1 crore. Within the EXM Payroll business, revenue has seen a substantial upturn, amounting to Rs 31.0 crore, marking a 21.7% yearly and 3.4% QoQ increase. Conversely, the EXM Compliance business revenue stands at Rs 8.0 crore, showing a 2.2% year-on-year increment but a -1.7% QoQ decline. The margin has displayed positive progress, reaching Rs 13.1 crore, indicating a 22.9% yearly increase and a 2.4% QoQ increase. Additionally, the Full-Time Equivalent (FTE) has reached 890, reflecting a 14.5% yearly rise but a slight 0.6% QoQ decrease. Notably, 39.8 lakh employee records were processed, up by 15.1% yearly and 3.6% QoQ.
Commenting on the results, CEO Naozer Dalal said, "we are happy to report a third successive quarter of robust growth in Revenues, EBITDA & PAT which reflects the trajectory we set for ourselves since earlier this FY across customer acquisition & laser sharp focus on costs / efficiencies. We have also commenced working on the Go-to-market plan for the new HRMS platform & Transitions plan for upgrading our existing customers to the new Smartpay platform – this which will position us well for FY25."
Chennai-based Allsec Technologies has been a pioneer in the EXM and International CXM spaces, and is today the leading Payroll Services Provider in India. It offers high-end business process solutions across key industry verticals in 40 countries.