Shares of AGS Transact Technologies declined by 5.01% on February 17, 2025, closing at ₹30.15. This drop comes after the company disclosed that its statutory auditors had issued an adverse opinion in their review reports. Additionally, AGS Transact is seeking voluntary loan restructuring with lenders for itself and its subsidiary, Securevalue India Ltd. (SVIL) to manage repayment obligations.
The company, which offers cash management services to 32,151 ATMs, has been facing liquidity issues and defaulted on repayment obligations for certain outstanding borrowings of both AGS Transact and SVIL. Due to these liquidity challenges, some banks whose ATM services have been impacted are exploring the option of shifting their cash management operations to other providers.
Despite these challenges, AGS Transact reported a 43.92% increase in revenue from operations, which grew to ₹209.60 crore in Q3 FY25, up from ₹373.75 crore in Q3 FY24. However, the company reported a pre-tax loss of ₹251.83 crore in Q3 FY25, compared to a pre-tax loss of ₹22.75 crore in the same period last year.
Additionally, the company’s total expenses increased by 14.4% YoY to ₹465.33 crore. The cost of materials consumed saw a sharp decline of 70.09% YoY, while employee benefits expenses also decreased by 14.84%.
The company also reported the resignations of several key individuals, including two independent directors, a company secretary, and the managing director of SVIL, citing personal reasons for their departures.
