May 26, 2021

Listing Department, BSE Ltd., Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai-400 001 Scrip Code: 532633

Listing Department, National Stock Exchange of India Limited, "Exchange Plaza", Bandra-Kurla Complex, Bandra (East), Mumbai-400 051 Symbol: ALLSEC

Sub: Submission of Press Release and Investor's Presentation

Dear Sir/Madam,

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, kindly find enclosed following documents:

1. Press Release dated May 26, 2021.
1. Investor's Presentation on the financial performance of the Company.

Request you to take the same on record.

Thank you,

Yours faithfully,

For Allsec Technologies Limited

Gagan Preet Singh Sr. DGM - Legal & Company Secretary

_____________________________________________________________

26th May 2021

BSE: 532633 I NSE: ALLSEC I ISIN: INE835G01018 I CIN: L72300TN1998PLC041033 I WWW.ALLSECTECH.COM Strong rebound in an unpredictable year – Q4 PAT up 55% QoQ

Chennai, India – 26th May 2021: Allsec Technologies, a global leader in outsourcing solutions announced its financial results for the fourth quarter (Q4 FY21) and full year (FY21) ended 31st March 2021.

Highlights include:

Sterling operating performance with Q4 EBITDA margin expansion by 328 bps QoQ and 239 bps YoY
Q4 PAT higher by 55% QoQ, PAT margin up 346 bps YoY
Continuing robust cash generation with OCF / EBITDA at 120% in Q4, and 106% for FY21

Key financial highlights

			Q4 FY21	Full year FY21
Particulars	Q4FY21	Q3FY21	QoQ	Q4FY20	YoY	FY21	FY20	YoY
Revenue	7,348	7,169	2%	7,114	3%	27,669	29,444	(6%)
EBITDA before COVIDrelated expenses & MTMFX losses	2,076	1,994	4%	1,777	17%	7,546	7,626	(1%)
COVID-related expense	(73)	(117)	(38%)	-	-	(590)	-	-
MTM FX gain / (loss)	89	(71)	225%	78	14%	(366)	(99)	270%
EBITDA	2,092	1,806	16%	1,855	13%	6,590	7,527	(12%)
EBITDA Margin %	28.5%	25.2%	328 bps	26.1%	239 bps	23.8%	25.6%	(175)bps
PBT	1,502	1,248	20%	1,375	9%	4,371	5,720	(24%)
PAT	1,378	887	55%	1,088	27%	3,507	4,493	(22%)
PAT Margin %	18.8%	12.4%	638 bps	15.3%	346 bps	12.7%	15.3%	(257)bps
Diluted EPS ( in ₹)	9.05	5.82	56%	7.14	27%	23.02	29.48	(22%)

The Company has built on the strong recovery in Q3, ending Q4 above pre-COVID levels in both revenue and profitability.

Q4 FY21 Financial Highlights:

Quarterly Revenue was higher by 2% QoQ.
- o The Digital Business Services (DBS) segment revenue flat QoQ at ₹47.0 cr.
- o The Human Resource Operations (HRO) segment higher 9% QoQ at ₹26.4 cr.
Quarterly EBITDA higher 16% QoQ, at ₹ 20.9 cr.
Quarterly Profit after Tax (PAT) higher 55% at ₹13.7 cr.
Diluted Earnings Per Share (EPS) higher 55% at ₹9.05.
OCF conversion at 120%.

Business Update

Digital Business Services (DBS):
- International business revenue lower by 3% QoQ, at ₹28.7 Cr., largely due to lower volumes in the US collections business.
- Domestic business revenue flat QoQ, at ₹18.3 Cr., after two consecutive quarters with >30% growth.
- Headcount stood at 3,469 employees, up 56 employees compared to the previous quarter.

Human Resources Operations (HRO):

Domestic business excluding Statutory Compliance grew 17% QoQ to ₹15.2 Cr.
Statutory Compliance business grew 3% QoQ to ₹5.7 Cr
International business remained flat QoQ at ₹5.5 Cr.
27 new customers were added during the quarter, versus 21 in the same quarter a year ago.
Payslips processed grew 3% QoQ and 16% YoY to ~26 lakhs in Q4FY21.
SME-focused platform currently in beta testing

Commenting on the performance, Mr. Suraj Moraje, Non-Executive Director said, "The company has delivered a robust Q4, including driving year-on-year growth especially in our payroll services business. Management's continued focus on accelerated customer acquisition, digitization, and platformisation should drive a strong trajectory in the times to come."

About Allsec Technologies Limited:

Allsec Technologies Limited (BSE: 532633, NSE: ALLSEC), headquartered in Chennai has been a pioneer in the HRO and International DBS spaces, and is today the leading Payroll Services Provider in India. Founded in 1998, Allsec is today a global brand, offering high-end business process solutions across key industry verticals in 40 countries. With ~ 4,300 employees across India, Philippines and the US, Allsec processes more than 8,50,000 pay slips each month for over 400 clients around the world. Allsec's leading SmartHR and SmartPay platforms are designed to address the complex challenges in today's HR environment, integrating the latest in technology including Robotic Process Automation (RPA), Smart Analytics, Chatbots and Mobility for enhanced employee engagement.

For further details on Allsec Technologies Limited, please visit http://www.allsectech.com.

For more information, please contact:

Investor / Analyst contact:

Raghunath P Chief Financial Officer [email protected]

+91 44 4299 7070

Disclaimer: This document contains statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition of the Company. These statements can be recognized by the use of words such as ''expects", "plans", 'will", "estimates", "projects", or other words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in such forward-looking statements as a result of various factors and assumptions, which the Company believes to be reasonable in light of its operating experience in recent years. The risks and uncertainties relating to these statements include, but not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition, our ability to manage our international operations, government policies, regulations, etc. The Company does not undertake any obligation to revise or update any forward looking statement that may be made from time to time by or on behalf of the Company including to reflect actual results, changes in assumptions or changes in factors affecting these statements.

Building lasting relationships

Earnings Update

Q4 FY21 and FY21

Safe Harbor

This presentation has been prepared by Allsec Technologies Limited ("Company") solely for information purposes without any regard to any specific objectives, financial situations or informational needs of any particular person. This presentation may not be copied, distributed or disseminated, directly or indirectly, in any manner. Failure to comply with this directive may result in a violation of the applicable law in certain jurisdictions. By reviewing this presentation, you agree to be bound by the restrictions contained herein, and to maintain absolute confidentiality, regarding the information disclosed in these materials. This presentation does not constitute or form part of and should not be construed as, directly or indirectly, any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company by any person in any jurisdiction, including in India, nor shall it or any part of it or the fact

of its distribution form the basis of, or be relied on in connection with, any investment decision or any contract or commitment therefor. This presentation contains statements that constitute forward looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition of the Company. These statements can be recognized by the use of words such as ''expects", "plans", 'will", "estimates", "projects", or other words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in such forward-looking statements as a result of various factors and assumptions which the Company believes to be reasonable in light of its operating experience in recent years. The risks and uncertainties relating to these statements include, but not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition, our ability to manage our international operations, government policies, regulations, etc. The Company does not undertake any obligation to revise or update any forward looking statement that may be made from time to time by or on behalf of the Company including to reflect actual results, changes in assumptions or changes in factors affecting these statements. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward looking statements. This presentation may contain certain currency exchange rates and the same have been provided only for the convenience of readers.

Company Overview

Q4FY21 Key Business Highlights

Financial Performance (Q4 and FY21)

Business segments update

Annexures

Company Overview

Global leader in outsourcing solutions

Leading and fast growing provider of end-to-end HRO services

		Leading and fast growing provider of end-to-end HRO services
100+ logos		added in current year 860,000+ payslipsp.m	(16% over Mar'20) ~200,000 Headcount on HRMS (50% over Mar'20)


	HR Services	•On-boarding•Employee Info Store•Postings•Exits		ReimbursementSystem	•Travel Requisition with workflow•Alerts to Travel Desk, Admin•Travel Claims & Vouching•Settlements
	Leave &Attendance	•Leave Mgt. with ESS & Workflow•Time Management, Shifts, OT•Attendance Processing		LLC, CLRA &Factories Act	•SimpliancePlatform based•Score Cards•Consulting for inspections, Audits
	Payroll	Global, Configurable, PayrollTax EnginesPayroll Statutory & Control Reports		Retiral	•PF Trust Accounting•Loans•Investments

DBS: Cutting edge Digital Business Services offerings

Customer Experience Management

Credit Risk Management

Transaction Processing

Compliance

Customer & Tech Support
Customer Acquisition
Debt Collections
Fraud Detection & Risk Management
Accounts Receivable
Accounts Payable
Account Research
Mortgage Services
Anti-Money Laundering Investigations
KYC / Customer Onboarding
Legal Transcription
Compliance Monitoring
Insurance Insurance BPaaS

Global Delivery capabilities

Global Footprint with proximity to Servicing Markets
~4300 employee workforce
Multi-Industry, Multinational & Multi-Demographic coverage
5 Inter-Connected Service Delivery Centers with site-to-site BCP, with ability to
Multi-Lingual hub offering 12+ International Languages using native speakers

Chennai (HQ), Bangalore, Noida, INDIA

Hindi
English • Punjabi
Tamil • Gujarati
Telugu
Kannada • Odia
Malayalam

Manila, PHILIPPINES

Mandarin
Spanish
Japanese • Malay

• Marathi

• Bengali

German • Bahasa-Indonesia
Turkish • Italian • Polish
French • English

Dallas, Texas USA

• Arabic

• Portuguese

Q4FY21 Key Business Highlights

Q4FY21 Highlights

HRO:
34%
North America market in Q4 FY21 during Q1 FY22

FY20. P&L statement: growth from Q3 increase of 16% QoQ o PAT at ₹13.7cr, an increase of 55% QoQ Balance Sheet: o Made inroads into augmenting service lines in Mortgage/BFSI and LPOs with 2 key wins in the
efficiencies ₹13.7cr from Dec 2020 to ₹198.3cr o OCF / EBITDA at 120% in Q4 FY21; 106% for FY21 o Domestic volumes remained flat QoQ and is likely to be impacted due to the COVID 2nd wave in India
- 2020 o Strong collections reducing total receivables from ₹45.0cr in March 2020 to ₹42.0cr o DSO reduced to 51 days from 56 days in March 2020

Continued Strong performance in current quarter with both Revenue and EBITDA above pre-COVID levels of Q4 Improved profitability driven by higher HRO revenue share (36% in Q4 vs 33% in Q3) and operational Headcount: 4307 as on March 31, 2021 an increase of 94 over Dec 31, 2020 and increase of 323 over March 31, o Revenue increased by 2% QoQ as we consolidate the o EBITDA grew strongly and stood at ₹20.9cr, an o Cash and short term investments increased by Interim Dividend: o Interim dividend of ₹15 per share for FY21 was declared on 29 April 2021 and paid to all eligible shareholders on 15 May 2021. Total cash outflow was ₹22.86cr Cost Optimization: o Indirect rent and facility cost reduced by 18% Investment in the business o Smartpay (SP4) product modernization proceeding as per plan and our SME focused HR product in testing phase. Sales and Customer focus: o Won 29 new customers during Q4FY21 with ACV of ~ ₹ 6.4cr o Large deals currently under implementation with ACV worth ~ ₹12cr will yield revenues from Q1/Q2 FY22.
- QoQ

Financial performance

Q4FY21 Financial Performance

Revenue:

Profitability:

1800 PAT (in ₹ lakh) & margin (%age)

during the current quarter
o DSO stood at 51 days as against 46 days in December 2020

15% 9% 10% 300 800

50.00% OCF (in ₹ lakh) & %age

Cash balance prior to declaration of Interim dividend on 29th April 2021 amounting to ₹ 22.86 crores

FY21 Financial Performance

₹2.7cr.

Revenue (in ₹ lakh)

Cash balance prior to declaration of Interim dividend on 29th April 2021 amounting to ₹ 22.86 crores

Business segment updates

Revenue grew 9% QoQ largely driven by year end tax revenues and 12% YoY
Revenue growth came despite absence of existing-customer growth (usually around 8-10%), where headcount went down 2% during
the year before ending the year at 4% higher than pre-COVID levels
EBIT % remained flat in line with revenue
Payslips processed grew 5% QoQ and 12% YoY
Strong pipeline as we enter the new financial year

* Excludes Ops & Selling cost incurred for SME platform

• Revenue marginally reduced QoQ by 1% with drop in International volumes by 4% due to client business de-growth for a large fx trading platform company offset by domestic growing by 2%. This de-growth is expected to be made up by other international customers by Q2 FY22 • EBIT down from Q3FY21 due to lower revenues • Total headcount increased to 3,469 up 2% QoQ. Domestic headcount was up 4% QoQ • Towards end of Q4, we have had two key wins in the US market which reflects a positive sentiment in the international business

Domestic Intl.

Annexures

Income Statement

Income Statement

								In ₹ Lakhs
ConsolidatedParticulars	Q4 FY21	QuarterlyQ3 FY21	Q4 FY20	Var %QoQ%	YoY %	FY21	FYFY20	YoY %
Revenue from Operations	7,348	7,169	7,114	2%	3%	27,669	29,444	(6%)
Less:
Employee benefit expenses	(3,963)	(4,045)	(4,033)	(2%)	(2%)	(15,351)	(17,073)	(10%)
Other expenses	(1,293)	(1,318)	(1,227)	(2%)	5%	(5,728)	(4,844)	18%
Total expenses	(5,256)	(5,363)	(5,259)	(2%)	(0%)	(21,079)	(21,917)	(4%)
EBITDA	2,092	1,806	1,855	16%	13%	6,590	7,527	(12%)
Other income	151	50	80	202%	89%	364	409	(11%)
Finance cost	(89)	(37)	(47)	141%	89%	(244)	(226)	8%
Depreciation & amortisation	(652)	(571)	(513)	14%	27%	(2,339)	(1,990)	18%
Earnings before tax	1,502	1,248	1,375	20%	9%	4,371	5,720	(24%)
Tax	(124)	(361)	(287)	(66%)	(57%)	(859)	(1,227)	(30%)
Profit after tax	1,378	887	1,088	55%	27%	3,512	4,493	(22%)
EBITDA Margin	28.5%	25.2%	26.1%	328 bps	239 bps	23.8%	25.6%	(175 bps)
PAT margin	18.8%	12.4%	15.3%	638 bps	346 bps	12.7%	15.3%	(257 bps)
Basic & Diluted EPS (in ₹)	9.04	5.82	7.14	55%	27%	23.05	29.48	(22%)

Balance Sheet

		In ₹ Lakhs
31-Mar-21	31-Mar-20	Var %
		(17%)
		(23%)
600	333	80%
	3,254	(15%)
	6,695	(13%)

		49%
		20%
		(7%)31%
		(28%)
	22,224	18%
31,944	28,919	10%

26,512	22,807	16%

622	467	(51%)33%
1,269	1,778	(29%)


1,517	1,013	50%

2,6464,163	3,3214,334	(20%)(4%)
	7304,9714,203577647	8801,7112,2272,7755,8163,33914,86212,4204,5021,5151,15780626,1281,311

Cash Flow Statement

Cash Flow Statement

		In ₹ Lakhs
Particulars	31-Mar-21	31-Mar-20
PBT	4,371	5,720
Add: Non cash Expenses/(Income)	2,872	2,113
Operating profit before working capital changes	7,243	7,833
Changes in working capital	(261)	(281)
Cash flow from Operations	6,982	7,552
Capex	(719)	(292)
Consideration towards business acquisition	-	(1,680)
Current investments*	(1,440)	4,543
Interest received	16	35
Cash flow from Investing activities	(2,143)	2,606
Repayment of borrowings	(24)	(1,379)
Interest paid	(242)	(226)
Payment of lease liabilities	(1,666)	(1,342)
Dividend paid	-	(1,832)
Cash flow from financing activities	(1,932)	(4,779)
Net change in cash and cash equivalents	2,907	5,379
Cash taken over on business acquisition	-	130
Opening cash & cash equivalents	12,420	7,164
	(465)	(253)
Exchange rate fluctuations

* ₹14.40 cr represents investments made in Debt mutual funds during the current year. In FY20, it was net withdrawal of ₹45.43 cr

AI assistant

Alldigi Tech Limited Interim / Quarterly Report 2021

62364_rns_2021-05-27_0f9630f9-57d8-487f-b90b-66011804a915.pdf