I’m also in consensus with the idea and have been contemplating the potential expansion of their business overseas.
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Hi VP Members,
I would seek some insights from members, which somehow I find fuzzy here:
a) NPST just announced the bonus, with an exdate of 2nd Feb - Until 1st Feb end of day, the share prices were volatile, no where coming close to upper circuits. Given that this is on trade to trade basis, I was attributing this to CMP already factoring the upcoming bonus.
However, on 2nd Feb, it hit upper circuit - does this sound fuzzy by any chance ? Happy to take thoughts, it would equally help add to collective wisdom
b) On ex-date, the lot size went from 100 to 300 (cos of bonus of 2:!) - In this case as well, on 2nd feb, there is a volume of around 10k in this stock, how can this be possible !?
Q3 FY24 Concall Highlights:
Performance Highlights:
- Revenue - 31.39 vs 10.22 cr ,210% yoy
- EBIDTA - 10.9cr vs 3.4cr, margin- 34.24% vs 33.2
- PAT - 6.5cr vs 1.8, increase of 261%
- EPS - 3.37 vs 0.93 ,261% growth YOY
Business updates -
- Psp side- First big deal is Bharat pay bill payment solutions which allows to reach out to more banks and allows to give solutions around license
and SAAS model.
- Bhart billpay is biller aggregators at NPCI end which can can be taken as service by banks and other payment aggregators.
- API solution -Added more accounts into last quarter.
- Issued 2 new bonus share for each share.
- Added Savita Vashist as exec. director with 2 decades of exp. of building businesses in software domain and international presence.
- Mrs Panchi as independent dir. to strengthen overall security and tech space.
- Awarded by economic times as top performing SME of the year & honored by Nav bharat for innovation in fintech space.
- UPI volume- 11 billion per month , 40-45% is peer to merchant transaction.
- Consumer pattern is changing and people are confident abt security and regulations by RBI.
- Consistent investment in R&D lab and focused on new products and increasing capabilities.
- Guidance - non-linear growth , creating products without any cost esclation and grow the revenue for each incremental cost.
- Revenue by Segment: EVOK business -65-70% ,license and services from banks -31-35%,
- API rollout and other apis- technically its there in Autopay and payout, working on functional side -would be able to launch this qrtr.
- Project expenses of 10 cr - cost involved for sharing in with banks and third parties involved.
- International opportunties- Exploring but it would take time as cycle is lengthier nearly 12-18 months.
- TSP business- It takes lot of time but its a robust revenue model,- first needs to be eligilble & empanelled into BOB, canara, bank of maharastra,
- In TSP, added new product all together and in evok - new large merchants,
- New subsidiary Timepay - to act as payment aggregators
- evok business- 5000 cr of gross transaction, Added 6 more accounts.
Disclaimer -Invested and biased.
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News from Prime Minister’s Office
Prime Minister Shri Narendra Modi, President of Sri Lanka, Mr. Ranil Wickremesinghe and Prime Minister of Mauritius, Mr. Pravind Jugnauth will witness the launch of Unified Payment Interface (UPI) services in Sri Lanka and Mauritius, and also RuPay card services in Mauritius, on 12 February, 2024 at 1 PM via video conferencing.
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“NPST Joins Hand with DCB Bank: Empowering Seamless Online Dispute Resolution.”
the Company is delighted to announce its partnership with DCB Bank by way of securing the contract for the “Development, Implementation, Customization, and Management of Software Solution for
Online Dispute Resolution Solution for various Digital Payment Channels of the Bank.”
The Company has successfully developed and launched the Online Dispute Resolution
mechanism for its Merchants in UPI ecosystem. As per the RBI master Direction to implement the Online dispute resolution for all the digital payments, ODR System is fast and fair in providing ultimate experience for their issuance /grievances.
This ODR solution will reduce the actual TAT and dependency on the batch file processing to
assist the user with the Realtime status of transaction request. It will facilitate expeditiously and
in fair manner for providing ultimate customer experience and trust in services of DCB Bank
without any manual interventions.
https://nsearchives.nseindia.com/corporate/NPST_22022024111925_NSEIntimationDCBBank.pdf
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Looks like NPST is really promoting their TimePay app. Seen a ~4x in March 2024 in value traded. This along with NPCI trying to limit transaction from top 3, could be good for NPST.
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Could you please share source of this data?
Has anyone gone through the results?
They have shown some solid growth YoY profit growth is 4 times, I cant seem to find investor presentation.
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It looks like an absolute bull market moment:
A debt-free software company trading at a 125 P/E going for a QIP. Don’t know what they are going to do with 240 crore of cash (assuming 1500 as the QIP price). Also, promoters are selling some of their holdings via OFS.
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The company is in a fast moving tech market. To keep being relevant even the incumbents need to be on their toes and work hard to develop new products/offerings. Company spoke about this in last call.
Last year itself company added 2 new products and got some orders on them (Bharat Bill Payment & Online Dispute Resolution) to the 2 major existing product basked (i.e., TSP, API rail for payment aggregators)
Company also gave hint about working on 2 different new products. i.e, Payer solution and offline payment model and spoke of one of them giving some topline in FY25 itself.
Company is handling some crazy incremental volumes. Which often means, company has to constantly think of implementing further scalability of it’s systems. Risk & fraud monitoring & compliances also become very very important as the UPI acceptability has grown. Then company has to make investment into AI/ML to see how they can fit into this ecosystem.
Company also has to hire top talents/product leaders who can manage these new lines of products from end to end and deliver to market. It also hired top HR & marketing talent last year to make the transition from being promoter led to more of an institution. Inspite of the scorching growth of around 130% cagr of last 3 years, it is still guiding for 75-100% growth for this year and working on future products.
So, i guess, we could give them some slack in understanding why the money is required. All of the above require money.
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Objects and Estimated Amount of Deployment
(Rs. in Cr)
-
NPST has larger operational plan with international expansion
goals on the increasing demand for digital payments and
innovation through India. NPST is well positioned to take the
advantage of India’s growing digital payment technology story
and replicate the success in other parts of the world. To expedite
20.00 Cr
2. Our global expansion efforts, we are actively seeking an
investment opportunity that aligns seamlessly with our
company’s aggressive roadmap.
NPST has done well with existing set of products and reaped the
benefits of scale. At the same time, it has been able to
successfully pick-up market share in the new segment and
acquire new accounts. The combination of new product and new
account has created stronger roadmap for NPST in coming
future. We believe that the pace needs to continue or rather
increase by creating larger expansion plan with product
extension, new product and account acquisition through
alternate methods. Beyond fully utilizing its capabilities and
adding new capacity, we see opportunity to multiply the existing
product stack and new accounts through growth investment.
This will take away the risk of losing opportunity while building
tech and business roadmap.
125.00 Cr
3. The size of digital payments has multiplied manifolds and
strategic investment in certain hardware and infrastructure will
create direct entry into new segments as well as penetrate in the
bottom of pyramid. The opportunity is visible and it is infact a
leakage in absence of investment in this area. This can be
immediately tapped and expect growth in new market segment
through existing product line. We seek investment in expansion
through hardware and infrastructure opportunities linked to our
existing and future products.
20.00 Cr
4. We have funnel in the existing market, but we lack presence in
the allied segments where we can create strong presence as
digital payment caters horizontally. At the same time, the size of
the organisation and absence of our footprint in user driven
market, does not establish us as strong brand in the industry. We
intend to invest in building multiple sales and marketing
opportunities across various domains and create strong brand
presence that adds value to NPST in industry, amongst clients,
global footprints, investors and quickly scale its sales, marketing
and the areas business opportunities.
20.00Cr
5. General Corporate Purpose …Balance ammount
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https://nsearchives.nseindia.com/corporate/NPST_24062024172745_NSEIntimation24062024signed.pdf
Does anyone know the deal amount?
