Rs 15/Share Dividend: Payable By August 19; Big Update Announced On Who Are Eligible

With a market valuation of Rs 1,725 Cr, Allsec Technologies is a small-cap company in the commercial services industry. With an impressive record spanning more than two decades, it is a global pioneer in outsourcing solutions. A final dividend of Rs 15 amounting to a total dividend payout of Rs 2,285.75 lakhs has been granted by the firm for FY24, and it will be paid out by August 19th. Following the company's major announcement on recipients of the dividend payment, the stock has come into focus. On Friday, the shares of Allsec Technologies ended at Rs 1132.45 apiece after gaining 72.28% YTD.

"Pursuant to Regulation 42 of the Listing Regulations, record date for the purpose of payment of final dividend of Rs 15/- per equity share of Rs 10/- each for the financial year 2023-24 shall be Friday, July 05, 2024. The Dividend on equity shares for the year ended March 31, 2024, as recommended by the Board of Directors and to be declared at the said AGM, will be paid subject to deduction of tax at source on or before August 19, 2024, or within 30 days from declaration at the AGM, to those shareholders or their mandates: a) whose names appear as Beneficial Owners as at the end of the business hours on Friday, July 05, 2024 in the list of Beneficial Owners to be furnished by National Securities Depository Limited and Central Depository Services (India) Limited in respect of shares held in dematerialized form; b) whose names appear as Members in the Register of Members of the Company as at the end of the business hours on Friday, July 05, 2024 in respect of the shares held in physical form," said Allsec Technologies in a regulatory filing on Friday.

"The Company had informed that the 25th AGM of the Members of the Company will be held on Friday, August 02, 2024 at 03.30 P.M (IST) through Video Conferencing (VC) or other Audio Visual Means (OAVM) in compliance with relevant circulars issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India ("SEBI")," the company further informed to stock exchanges.

Commenting on the growth outlook of the company, Naozer Dalal - Chief Executive Officer (CEO) said, "Allsec continues to be a leader in outsourcing solutions to the industry including Fortune 100 companies. With ~5600 FTEs spread across four cities in India & Philippines, we manage over 11 million customer interactions per month in our CXM business (in Q4'24) & 1.3 million employee records per month in our EXM business. Our service model boasts of excellence in service delivery, superior quality, state-of-the art technology platforms & consistent process innovation."

"I am happy to present the first full year results since assuming the role - it is satisfying to report holistic growth all around - robust increase in full year revenues by 20%, EBITDA by 30% & OCF by 28% over FY23 (on the back of quarter - on - quarter growth) & increasing Net Promoter Scores (NPS) from our customers. Even more satisfying is the fact that both of our businesses - Customer Experience Management (CXM) & Employee Experience Management (EXM) - which we had re-branded during the course of the year from DBS & HRO respectively - have shown superior growth - CXM by 23.8% & EXM Payroll business by 18.2%," he added.

"In February, we also announced a portfolio restructuring viz the sale of our Local Level Compliances (LLC) business - being a business not having a natural adjacency to our Payroll business. The same was 'completed' on 30th April 2024. We continue to remain the undisputed leader in the managed Payroll services space, by far, processing over 16 million employee records annually - backed by our long vintaged / experienced staff & configurable technology - having also completed upgrades for both our Smart Pay & HRMS Platforms ("Buzzily") this year," the CEO stated.

"Further towards the end of the year, we have added a new weapon in our arsenal - to service the enterprise. SaaS market leveraging our decades of experience with a clearly defined go-to-market strategy and product road map. We have also onboarded a sales team that is working to build this new revenue stream for the future. Growing our International footprint & improving employee productivity were two other key priorities we set for ourselves in the beginning of the year & happy to report that we have made good progress through the year - share of International clients in new Sales moved from 52% in FY23 to 57% this year & payslips processed / FTE improved between 5-7% yoy," said Naozer Dalal.

"We are envisioning great growth in the EXM and the CXM businesses with growing share of International new BD acquisition. We have robust plans to grow the EXM business in South Africa & South East Asia, amongst others. We are making significant investments in people, technology and infrastructure to prepare the organization for a period of aggressive growth. At this juncture, we would like to thank all our key stakeholders for their unstinted support in FY 24 and looking forward to your continued support for our growth plans into FY 25 & beyond," he further commented looking growth outlook ahead of Allsec Technologies.

During the previous financial year, the company declared and paid out an interim dividend of Rs 20 per equity share (200% of face value of Rs 10 each) at their meeting held on 28 October 2022.

"*The Company has opted to avail deduction under Section 80M of Income Tax Act, 1961 in respect of dividend income received from its wholly owned subsidiary, Allsectech Manila Inc., Philippines amounting to Rs 3,973 lakhs and 2,932 Lakh during the year ended 31 March 2024 and 31 March 2023, respectively. Consequently, the Company charged off foreign tax credit on the dividend income to 'current tax expense' which aggregates to Rs 596 lakhs and 435 lakhs during the year ended 31 March 2024 and 31 March 2023, respectively," said Allsec Technologies in its annual report.