ALLSEC Technology - BPO turnaround story

(neeraj610) #41

Vulnerability assessment and penetration testing are part of the PCI-DSS requirements. Braintree is quoting US numbers and that too on the higher side. Their business depends on it :wink:

(Prasanna) #42

Why the tax rate is on the lower side? Is it cause of a concern?
Also i don’t see any dividends being distributed so far…

(ffaizan) #43

Where did you get the information about clients for AllSec. Can you please share the source ?

(Alphin) #44

I have done my own research, based on it.

There is a portal web address of Allsec where they host website for employees of these companies for login to payroll and HR.I forgot the actual domain.

I did a Google search with site:“domain” to find these companies login pages.

(Alphin) #45

Go to Google and search

(ffaizan) #46

Thanks for quick response. Will check

(tbhavesh) #47

This does not give a complete list. Allsec provides payroll processing for our company and our site does not start with allsechro!!!

(Alphin) #48

Yes I know, I have mentioned that “Some companies I managed to find”

Could you share your company and maybe other company names not on the list. And also some scuttle butt with Allsec guys.

(aashish2137) #49

I used to work with KPMG until 2013. KPMG had all their HR and payroll work outsourced to AllSec. Their portal was quite simple and stable from what I remember, although the UI was from 1980s. But this was 3 years ago.

(Naz) #50

(21-Sep-2016) Allsec Technologies Launches AML-as-a-Service: Outcomes-driven Offerings for Global Banks

“Allsec’s AML-as-a-Service disrupts current models of BPO engagement—where the per-seat model is widely prevalent,” said Jeff Brown, Senior Vice President at Allsec. “We wanted to bring performance and accountability into the game, by delivering an outcomes-based variable service offering. We take out the bloat from the engagement by using tools and smart processes, thereby delivering more outcomes quicker and at substantially less cost than in-house.”
Full text at

(weblinsolutions) #51

@Alphin: How do you compare Allsec to Firstsource Solutions for long term? Firstsource have a bigger market cap, more turnover, better profits, consistency and is available for cheaper [valuation wise] in the market. Firstsource recent acquisitions will be bring in better revenues for the company in the coming years. Maybe @hitesh2710 ji can share his thoughts for a long term perspective as he is invested in both the businesses.

(csteja) #52


How can you be confident about the stability of the earnings considering the fact the topline is volatile since 2012. Thnks.

(Alphin) #53

During research for Allsec I had also checked first source, the reason I preferred Allsec was the moat it had due to HR and payroll function. You can read more about such moat in five rules of stock investing by PAT DORSEY section of business processing firms.

(weblinsolutions) #54

Thank you for letting me know. I agree with you that companies are hesitant to change the payroll function but we must also factor in that Allsec had this moat from years. Only thing concerns me is inconsistency of Allsec. Let’s hope the company actually turn-around this time. Firstsource does provides Workforce Management services and they may come into HR & Payroll directly or via any acquisitions later on. I’ve been reading more about the business processing firms recently and didn’t knew that book had a separate section for it. I’ll go and read that book first.

(Hitesh Patel) #55

Good results from allsec for q2 fy 17.

revenues up to 82 crores for q2 fy 17 from 55 crores in q2 fy 16.

net profits up to 16 crores from 9 crores in same period.

q on q also figures look good.

Half yearly eps at 19 rs per share.

(Ankit Gupta) #56

Excellent results from Allsec for Q2FY17.
The presentation for Q2FY17 results is out:

There is healthy traction in the US business with increased business from existing customers. Also, the revenue growth from the Manila operations is healthy, although, its PBILDT declined due to absence of rental income. One more thing noticeable in the results is the improvement in PBILDT margins due to operating leverage kicking in.

Disc: Invested

(sanketkulkarni1987) #57

Excellent results !!! Financial performance continues to improve consistently … EBITDA % looks healthy …

Disc: Invested

(Hitesh Patel) #58

US seems to be the main growth driver for allsec.

They can do well in domestic markets as well.

(chintri) #59

Can us elections impact the prospects of the company?

(Bheeshma Sanghani) #60

I recently invested in Allsec, so clearly my views are positively biased. Having said that, i found this company after i ran a screen on interest coverage ratios. I have zero understanding of the BPO business or Payroll processing. However i went through the ARs for the last few years and found that the company made some bad decisions regarding clients and market focus which based on what i have read they seem to have rectified ( as is evident from the numbers ). They let go of the unprofitable clients and found new markets. All of this with very less debt.

Following is an extract from the 2013 AR

“…The Company was in the process of re-pricing all the Domestic Contracts so that all contracts are profitable. Due to this, we did not renew contracts with 2 major Clients whose pricing was not
acceptable to us…”

Following is an extract from the 2014 AR

“…Domestic business saw a decline of 14% compared to last year and it is mainly due to your Company’s conscious decision not to renew contracts with 2 major clients whose pricing was not profitable. Despite that we have added quite a few clients in the Domestic market during the year to offset this and the Pricing with these new Clients were negotiated at normal levels…”

Following is an extract from the 2015 AR

"…Your Company has progressed well in the Domestic business during the year and has added clients with better pricing, resulting in an increase of 33% in revenues over the previous year. Capacity utilization
in domestic business is better and we expect that the profits from this division will increase in the coming
years. "

Following is an extract from the 2016 AR

“…Your Company has also progressed well in the Domestic business during the year. Pricing in the market has been increasing gradually. We now have good capacity utilization in this business at rates which are much higher than what we were getting 2 years back. The plan is to keep looking for strategic contracts where we can command higher rates and improve margins…”

Following is the share of income from the domestic business

2013 - 53%
2014 - 50%
2015 - 66%
2016 - 66%

Since employee cost is a major contributor to the expenses i looked up the head count numbers

2013 - 2479 employees
2014 - 2553 employees
2015 - 2765 employees
2016 - 2407 employees

While the business has grown the number of employees has more or less remained stable. in fact number of employees has gone down in 2016 after going up for the past 3 years.

So it seems to be that they have found some optimum mix of employees, clients and markets that can serve them profitably in the years to come.