Step into the captivating world of the stock market, where fortunes are made, and dreams are shattered. In this realm, short-term stock price fluctuations dance to the rhythm of public sentiment, while long-term success is intricately woven with the tapestry of earnings. As we find ourselves amid the exhilarating earnings season for the quarter that ended March 31, 2023, a micro-cap company has set the stage for a riveting earnings announcement that holds the potential to leave investors spellbound.
Within the vast ocean of companies, both large and small, microcap companies often exist as hidden gems, their potential often overlooked by mainstream investors. These pint-sized players possess a certain allure, providing the thrill of discovery and the prospect of exponential growth. It is within this dynamic arena that a particular microcap company has emerged, poised to unveil its quarterly earnings report, which has caught the attention of astute market observers.
The company name is Transcorp International Limited. Transcorp International Limited is a 29-year-old Reserve Bank of India regulated entity, listed on the Bombay Stock Exchange with 25 offices nationwide. Transcorp, one of India’s first perpetual PPI license holders, empowered by RBI’s progressive policies has pioneered and democratized payment cards and UPI in India with its marquee fintech partners.
The company was the first non-Bank to launch network cards in India, UPI on PPI, and wearable payment devices, and has recently crossed the milestone of two million PPIs issued. Transcorp PPI continues to have a laser focus on financial inclusion, and B2B partnerships and works closely with its partners to achieve their fintech goals in a compliant and curated manner. It offers a host of financial services including Foreign Exchange and Remittances as an Authorised Dealer Category II license holder. The company runs close to 1000 State Bank of India outlets across India and operates a 39-year-old travel agency: Ritco Travels.
Transcorp has clocked its highest-ever revenue from operations (Rs 2881.22 crore) in the 29-year history of the company, and once again remains profitable at the end of the financial year. Transcorp’s PBT for Q4, 2022-23 was Rs 1.53 crore compared to profits of Rs 0.49 crore for the same quarter last year. Transcorp’s (standalone) net PBT stands at Rs 2.12 crore and consolidated profit before tax at Rs 2.30 crore for the financial year ended March 31, 2023; compared to profits of Rs. 0.54 crore and Rs 9.82 crore respectively for the last financial year.
Gopal Sharma, Managing Director of the company commented that during the financial year that ended on March 31, 2023, the company achieved a growth of 25% over the revenues of the previous financial year and the company is in profits for the second consecutive financial year. The revenue from operations of the company for the financial year ended March 31, 2023, was Rs 2881.22 crore which is the highest ever in the history of the company. The money-changing business, outward remittance business and PPI payment system business as well as Banking Correspondence business have continued to flourish and generate profits.
The stock has delivered standout returns in the last three years, jumping over 350% and in the last one year, it is up by 49%.