FND - Findi Limited

[frugal.rock]

Chart update

 

[Dona Ferentes]

Chart update

I guess that's what happens when you stop paying attention.

webinar

Findi (ASX:FND) - Webinar Presentation - ShareCafe

Nicholas Smedley, Chairman, Findi (ASX:FND) is a technology investment company, with a focus on growing India through financial inclusiveness for the underbanked.

www.sharecafe.com.au

NH

 

[Dona Ferentes]

Chart update

naw, this is a chart update

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Findi raises $37.6 million ahead of TSI India IPO from leading Indian investment

Piramal Alternatives, backed by leading Canadian pension fund CDPQ Digital payments and financial services provider, Findi Limited is pleased to announce that its Indian subsidiary, Transaction SolutionsInternational (India) Pvt Ltd (TSI India), has raised $37.6 million via the placement to leading Indian investment group, Piramal Alternatives (www.piramal.com) of Compulsory Convertible Debentures, which are compulsorily convertible to equity at IPO.

The entry equity valuation is based on an FY23 EBITDA multiple and reflects a pre-IPO market capitalisation of $153.0 million (post money $190.6 million) ahead of TSI India’s intended listing on the Bombay Stock Exchange (BSE).

The funds will be allocated with respect to working capital and capital expenditure. The raise will improve TSI India’s free cash position by in excess of $45 million and can be utilised for acquisitions and the acceleration of Findi’s expansion plans in India, including the FindiPay digital payments business, the roll-out of white label ATMs after required approval from the Reserve Bank of India and further transactions to scale-up its merchant and ATM network.

 

[frugal.rock]

naw, this is a chart update

 

[Dona Ferentes]

FND has announced robust financial results for the first half of 2024 (1H24), showcasing revenue and earnings growth.

Key Financial Highlights

Findi Limited reported a statutory revenue of $31.757 million for 1H24, marking an increase of 30.2% compared to the same period last year. EBITDA surged 84.4% to reach $12.648 million on a year-over-year basis. Operating cash flows for the six months ending September 2023 grew, and amounted to $19.401 million compared to $4.7 million for the entire 12 months ending March 2023. Statutory net profit after tax for 1H24 reached $1.098 million, an increase from $0.190 million in the same period the previous year. Basic earnings per share (EPS) stood at 3.0079 cents per share, up from 0.0605 cents per share in 1H23.

Chairman Nicholas Smedley acknowledged the company's performance and attributed it to their strategy of becoming a full-service digital bank in India, one of the world's largest developing markets. Smedley also emphasised the significance of retaining and extending their contract with the State Bank of India, a pivotal step in their long-term strategy in India, allowing Findi to build greater scale and strengthen its competitive position.

Operational Highlights

During the first half of 2024, Findi secured a significant 10-year contract with the State Bank of India (SBI), which is expected to generate revenues of up to $620 million. Under this agreement, Findi will deploy 4,219 ATMs across India. Previously, Findi had been providing ATMs for SBI through a third-party outsourcing contract that was set to expire in December 2023. Now, the company will enter into a direct contract with SBI, India's largest bank, with the ATMs primarily being placed at existing service sites. This arrangement is expected to expedite customer transaction volumes. Findi now has a network of over 20,500 ATMs in India, solidifying its position as one of the largest non-bank ATM operators in the world's most populous country.

The contract with SBI will be executed by Findi's wholly-owned subsidiary, Transaction Solutions International (India) Pvt Ltd (TSI India), and it is anticipated to be fully funded from the company's free cash flow and new bank facilities.

Events Subsequent to 30 September 2023

Post the reporting period, Findi announced that its Indian subsidiary, TSI India, successfully raised $37.6 million through a placement to Piramal Alternatives, a leading Indian investment group. These funds are in the form of Compulsory Convertible Debentures that will convert to equity at the time of TSI India's IPO. This strategic move has positioned TSI India with a pre-IPO market capitalisation of $153.0 million (post-money $190.6 million), aligning with TSI India's intended listing on the Bombay Stock Exchange. The capital injection will be utilised to accelerate Findi's strategic initiatives, including acquisitions, expanding FindiPay digital payments business, deploying white-label ATMs (subject to approval from the Reserve Bank of India), and further expanding their merchant and ATM network.

FY24 Outlook & Guidance

Findi is confident in its outlook for the full fiscal year 2024 (FY24), reaffirming its previously stated guidance:

• Revenue: $67.3 million
• EBITDA: $23.6 million
• Operating cash flows: $20.6 million

With a strong financial performance in 1H24 and promising strategic developments, Findi Limited appears well-positioned to achieve its goals and continue its growth trajectory. Investors and stakeholders can anticipate a dynamic and evolving company in the digital banking and financial services sector

 

[Country Lad]

With a strong financial performance in 1H24 and promising strategic developments, Findi Limited appears well-positioned to achieve its goals and continue its growth trajectory. Investors and stakeholders can anticipate a dynamic and evolving company in the digital banking and financial services sector

@Dona Ferentes I had a look after your post and thought to myself that there are a lot of people in India, all using money & ATMs so what could go wrong?
Can't understand the bit about listing their subsidiary on the Bombay stock exchange.
Chart looked OK so waited for break at 123. Another top up after that and a further break today up 11% at the moment.
I didn't post at the time as I was not here for a month or 2.

and for you non P&F people:

 

[Dona Ferentes]

@Dona Ferentes I had a look after your post and thought to myself that there are a lot of people in India, all using money & ATMs so what could go wrong?
Can't understand the bit about listing their subsidiary on the Bombay stock exchange.
Chart looked OK so waited for break at 123. Another top up after that and a further break today up 11% at the moment.
I didn't post at the time as I was not here for a month or 2.

View attachment 172662

and for you non P&F people:

View attachment 172663

I was thinking about Findi ... my oh my. Risk and reward!!

Bombay listing ... obligation to keep nationalists onside ?

 

[Country Lad]

I was thinking about Findi ... my oh my. Risk and reward!!

Bombay listing ... obligation to keep nationalists one oh we?

I have run very tight stops on this one and nearly sold at 140 but there were no technical stop indicators. I can have a bit of leeway now it is so much in profit.

 

[Dona Ferentes]

Findi is set to gain a licence enabling it to splash its name on thousands of branded ATMs across India.

The stock is up 430 per cent over the past year and settled at $3.20, earning it a $168 million market cap, before it went into a trading halt on 11 April.
“The market is starting to understand the opportunity we have in India,” Nicholas Smedley, Findi’s chairman, said. “We have significant Australian-based funds investing in the company.”

 

[Dona Ferentes]

Findi provides FY25 earnings guidance and market update​

Key Highlights (01 Aug)

• FY25 guidance: Revenue A$80-90 million; EBITDA A$30-35 million
• Roll-out of FindiPay across 6 new States, acquiring 3,000+ merchants per month
• Advanced due diligence on acquisitions
• Nicholas Smedley appointed Executive Chairman
• IPO of TSI India on track for 2026, lead managers to be appointed shortly
• Strategic investments in FindiPay, people and systems to support growth

With AGM held on 15 August

 

[Country Lad]

I have this as a breakout at $5.20, currently at $5.48 up 5.8%.

From Morgans Conference presentation 15 October

Still holding

 

[Country Lad]

Trading halt

The trading halt is requested pending an announcement by the Company to the market in relation to a strategic acquisition by the Company’s subsidiary Transaction Solutions International (India) Pvt Limited

 

[Country Lad]

No interest in this one lately except for @Dona Ferentes and I. Pity, because it is up 500% over 12 months, 50% in the last month and 10% today

 

[peter2]

I'm feigning no interest as it's another (like CU6) that I've missed out on. Every time you bump the thread, it's a dagger thrust to my back pocket ego.

 

[Country Lad]

I'm feigning no interest as it's another (like CU6) that I've missed out on. Every time you bump the thread, it's a dagger thrust to my back pocket ego.

Yes @peter2 I know the feeling. I have a number of threads like that.

 

[Dona Ferentes]

Yes @peter2 I know the feeling. I have a number of threads like that.

yeah well, I used to own it.

 

[galumay]

For me personally this has been a rewarding example of doing the work researching and analysing the business, deciding it was not investible for me, predicting the consolidation, and made the correct decision by not investing.

Its been my single biggest improvement as an investor, not buying the bad businesses. You dont need to be particularly good as picking the best businesses if you can just avoid the really bad ones!

At least shareholders will get most of their money back (depending on how much they paid.)

LOL!! 4 years on and had someone held thru all of that they would be laughing at how wrong I was as it turned out!

In my defence, I would still rather be wrong and miss out on potential profits than be wrong and lose precious capital! Sort of sins of omission versus sins of commission!

 

[Country Lad]

Well, look at that a price drop so far of 24%

I see this more as a buying opportunity and will do so when the dust settles somewhat and the momentum urns after everybody has a Bex and a lie down. Might need to explain that to the younger ones here.

A lot of selling following its half year results.
For the six months ended 30 September it reported:

• Revenue of $33.9 million an increase of 6.6%
• EBITDA of $12.9 million an increase of 2.4%

The issue seems to be that the increase is not up to that expected for the FY2025 guidance. Commenting on the half, the company's executive chair, Nicholas Smedley, said:
“Transactions per day, a key performance indicator for our ATM business, were abnormally constrained during the first half of FY25 by the [Indian] general elections that ran for six weeks from 19 April 2024 to 1 June 2024. In addition to travel restrictions and many additional public holidays the general elections involve various measures restricting and regulating cash transactions”.
“The transactions per day have trended back to historical norms following the elections. Nonetheless we are firmly on track to deliver on our full-year financial guidance, driven by the State Bank of India (SBI) contract rollout commencing in early December 2024 and the ramp up of Findi-branded White Label ATMs (WLA) expected to commence in the early part of the 2025 calendar year.”

 

[peter2]

Having missed out on the clear trend up (doh) I agree that this selloff seems a bit excessive. The explanation for the reduced transactions seems reasonable. It's not as if there's an account irregularity.

Worth monitoring for a resumption of the prior up trend.

 

[Dona Ferentes]

Having missed out on the clear trend up (doh) I agree that this selloff seems a bit excessive.

Worth monitoring for a resumption of the prior up trend.

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