Yes, they are developing MSME HRMS product. Lets see how the adoption will be in the market.
As far as corp action goes, I could only speculate what might happen. If they merge it using Quess stock, it could be a bonus for investors in short term. Even otherwise, Allsec is a good cash generating machine with no need for capex.
Corp action : - Conneqt acquisiton is completed :-
For Allsec, they mentioned no plans in the last con-call, bt as u mentioned, speculation always remains & can become a consideration sooner or later.
This was the starting point of my initiating the discussion & reviving this thread. Once this part of the analysis is established, only 2 questions remain - wat to pay for this assuming zero growth? & wat are the sustainable growth drivers being put in place by the mgmt?
As an addendum, more dividends are expected as they transferred the cash from Manilla subsidiary this qtr.( Yes they had to pay tax on it which resulted in one-time qtrly loss)
Disclosure :- As above
@shardhr : My logic of Quess acquiring 100% stake in Allsec is so they can get access to Allsec’s cash pot. I guess it is wishful thinking from my side.
Agree that HRMS is a good business. In my organization, we use HGS for HRMS. Its not a great product from tech point of view. But the payroll vendor is pretty sticky and as long as the technology is good enough to have all the processes automated, HR teams will not even look for an alternative. Organic growth will always happen when their clients onboard new employees. The other growth lever is acquiring new clients. They have been having good client addition over last 1-2 years. They are also targeting Manila & Middle east regions for expansion. SAAS based MSME HRMS solution could be another growth driver.
AGM21
Cash on balance sheet - Manilla dividend is in this direction. Acquisition - no deals on the table
Multi year contracts on both DBS and HRO business, majority revenue is repeatable
Q4 FY21 - exit growth rate of 12%
HRO
Seeing good momentum in HRO business - both headcount growth and new customers side
SME HRO product is in beta, testing with friendly customers. Product development will continue till end of year - to be at par with competition and differentiation work will continue thereafter.
DBS
Margin variability is due to change in business mix between US and India, individual business segment margins have not moved much
DBS US - Sept/Oct onwards - will start seeing revenues from NA DBS business, seeing good momentum. Have good pipeline and also quality is also improving. Wins after a long time in DBS US.
Insurance DBS - leveraging strength of Quess → acquired Fairfax’s insurance technology business, joint development and offering in Quess. Just a quarter old segment
DBS domestic - do not actively look for growth in domestic, domestic book continues to grow. Will maintain current run rate in India. Most of new business is through referrals. Focus on North America DBS.
I see there is no update on this thread. But Quess has made a merger announcement with Allsec Tech. The share swap ratio is at 74 Quess shares for every 100 shares of Allsec Tech. The ratio is neutral and very close to market prices of both stocks. So, I don’t see any advantage for Allsec Tech shareholders. From now on, Allsec share price could track Quess share price until the merger completes.
Just to liven up this thread.
Any one has any update on this name ?
Company’s name changed rebranded as Alldigi tech by Quess corp
Has anybody spoken and met with the company recently? Their financial performance remains steady through recent years with business mix improving in favour of international BPM business. Company is now run by ex Tata Business Services (ConnectQ) executive. Decent cash generation and dividend paying company…
started study on this company - some notes please share your inputs on this
Alldigi Tech is a global leader in outsourcing solutions, including both Customer Experience Management (CXM) and Employee Experience Management (EXM). Market leader in India as per management claims.
As a Quess Corp subsidiary, the company is backed by Fairfax Holdings of Canada.Alldigi was incorporated in 1998 and is listed on the National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE).The company has over 20 years of experience providing BPO services to Fortune 100 companies and other global clients. Alldigi employs approximately 5,600 FTEs (Full Time Equivalent ) across four cities in India and the Philippines.
CXM Segment
Alldigi’s CXM segment provides voice and non-voice services to clients in India and internationally.35 Services include:
Customer and tech support, Customer acquisition, Debt collection, Fraud detection and risk management
CXM services are delivered from India, the Philippines, and potentially the United States. In the first quarter of 2025, Alldigi reported 32.7% year-over-year revenue growth in its CXM segment, thanks in part to new logo acquisitions and the expansion of services like background verification and insurance
EXM Segment
Alldigi’s EXM segment focuses on Human Resources Operations (HRO). The segment provides services such as:
HRMS, Payroll services, Time and attendance management
These services are mainly delivered from India and the Philippines. EXM revenue grew 11.1% year-over-year in the first quarter of 2025. As of the end of the 2024 fiscal year, Alldigi managed 1.3 million employee records per month in its EXM business. Alldigi’s Smart HR product provides clients with an end-to-end HR solution, and its Smart Pay product helps manage and deliver payroll. The company’s Smart Stat product helps clients manage complex labor law and payroll compliance.
Recent Developments
In 2023, Alldigi renamed its business segments from Digital Business Services and Human Resource Outsourcing to Customer Experience Management and Employee Experience Management. This change reflects the company’s commitment to customer-centricity and providing a comprehensive suite of services.
In 2024, Alldigi announced a portfolio restructuring with the sale of its Local Level Compliances (LLC) business. This decision was made to simplify the company’s organizational and operational structure and allow for greater focus on its core business segments. The sale was completed on April 30, 2024. Alldigi also rebranded itself as Alldigi Tech Limited, reflecting the company’s commitment to innovation and technology in both CXM and EXM segments.
FY 2024 EBITA: ₹115.6 crores (consolidated) and ₹88.4 crores (standalone)
FY 2024 EBITA Margin: 24.6% (consolidated) and 22.6% (standalone)
While specific EBITA margin projections are not provided for the next four years, management does offer insights into their growth expectations:
Revenue Growth: Alldigi expects to achieve above-market growth in both its CXM and EXM businesses over the next several years. They aim to replicate or exceed the growth achieved in the 2024 fiscal year.
EXM Growth: Alldigi projects EXM revenue growth in the range of 18% to 25% for FY 2025. The long-term goal is to grow the EXM business at a slightly faster pace than the CXM business.567
CXM Growth: Management anticipates CXM revenue growth in the high teens or early 20% range for FY 2025.
Margin Improvement: Alldigi intends to maintain or slightly improve EBITA margins in the coming years. They plan to offset wage and non-wage inflation by increasing the proportion of international business and implementing operational efficiencies, particularly in the EXM segment.
Long-Term Margin Target (EXM): Alldigi has set a long-term steady-state EBITA margin target of around 35% for its EXM business.
Key Factors Influencing Growth:
International Expansion: Alldigi is actively pursuing growth in international markets, particularly for its EXM business. They have already added sales resources in the US and South Africa. More than 50% of Alldigi’s EXM sales pipeline consists of international opportunities.
New Sales and Existing Client Mining: Alldigi is focused on acquiring new logos and expanding business with existing clients in both CXM and EXM segments. They are implementing various initiatives, including account-based marketing and targeted sales campaigns, to drive new business
Technological Innovation: Alldigi is committed to investing in technology and product upgrades to maintain its competitive edge and deliver innovative solutions. This includes enhancements to the Smart HR mobile app, the migration of customers to the new SP4 payroll platform, and the development of new HRMS solutions.
Operational Efficiencies: Alldigi emphasizes cost management and operational efficiency to drive margin improvement. They are focused on increasing productivity metrics like payslips processed per FTE
No Major audit remarks in last 2 years
Promoter Quesscorp demerged into Digitide soloutions limited and others. Can is have a negative impact over Alldigi Tech ltd?
