Net loss of 8 crore posted by Allsec Tech

The firm posted a consolidated net loss of about Rs 8 crore in the first quarter of FY22

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The net loss of Allsec Technologies, the payroll service providing company, slumped 12.74 per cent to Rs 464.05. This follows the consolidated net loss of Rs 7.97 crore posted by the Company in the first quarter of FY22, compared with a net profit of Rs 6.03 crore during the same time in FY21.

Revenue from operations went up 12 per cent to Rs 71.49 crore in first quarter of FY22 as compared to the fourth quarter of FY21. Profit before tax soared 30 per cent to Rs 10.52 crore in the first quarter of FY22 as against Rs 8.07 crore in the first quarter of FY21.

EBITDA grew 22% to Rs 15.81 crore in Q1 FY22 as against Rs 12.99 crore in Q4 FY21. EBITDA margin improved to 22.1% during the quarter as compared to 20.3% during Q4 March 2021.

In Digital Business Services (DBS), the revenues were three per cent lower quarter-on-quarter, at Rs 45.50 crore during the quarter. International business revenue grew higher by six per cent quarter-on-quarter, at Rs 30.30 crore, primarily due to the US collections business volumes and due to more clients coming into the fold. Domestic business revenue dipped by 17 per cent quarter-on-quarter at Rs 15.20 crore, primarily due to volume reduction, on account of the second wave of COVID-19.

Revenues dipped two per cent in Human Resources Operations (HRO) quarter-on-quarter at Rs 26 crore during the quarter. There was an eight per cent decrease in domestic business, excluding statutory compliance, quarter-on-quarter, to Rs 14.10 crore mainly due to year-end revenues in the fourth quarter of FY21.

Statutory Compliance business grew five per cent quarter-on-quarter to Rs 6 crore during the quarter. International business grew seven per cent quarter-on-quarter at Rs 5.90 crore.

Suraj Moraje, non-executive director, Allsec Technologies, feels that the Company was able to face the second wave of the pandemic relatively well, witnessing faster customer acquisition in the DBS business and showing continued stability in the HRO business.

Allsec Technologies has been a pioneer in the HRO and International DBS spaces, and is today the leading payroll services provider in India.

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