Australia's largest stock trading and investment forum Australia's #1 stock forum

VOR

Click for more information

0.00%

39.5¢ vortiv limited

Ann: TSI India wins a further 800 ATMs under contract, page-45

First 45 Last

Share
Profile

Follow
ezyrider

877 Posts.

16/09/14

15:44

Post #: 13982820
Share

Originally posted by TonyIndo ↑

Following on from my recent posts, what clearly appears to be underestimated by the market at the moment imo is just how significant TSI India's ATM business has been growing over the years.

TSI India will soon have 2300 ATMs online in total and all as a result of business with ONLY 3 existing banks.

The company have:

* Managed to increase contracts/deals (between 3-5 new contracts/deals) with the three existing banks over the years. Testament to how timely & efficient they are able to rollout new and bigger projects.

* Managed to win bigger ATM contracts that only keep growing in size that are now adding to the bottom line. Recently turned cash flow positive remember.

* Won 2nd ATM Installations in selected cities.

* Increased their ATM network over the years.

* Increased their gross revenue over the years.

* Increased their transaction volumes over the years.

All as a result of the solid business relationships that have been strengthened, nurtured and cultivated over the years.

So what is the limit here? Is there a limit to how many new contracts they can win with each of the existing banks? If we look at their performance over the years, there's every reason to believe that new contracts with existing banks may very well keep growing larger and larger over time.

I know, I've mentioned this numerous times now, but newer larger block contracts should not be underestimated imo. NOTE, this has only just taken place with the latest announcement.

Just playing with numbers here....

Performance to date:

* 2300 ATMs soon to be online.

I've previously highlighted that on page 4 of the Independent Investment Research Report, the research team highlighted that according to TSN, banks are no longer looking to award contracts for less than 100 ATMs. That figure has now been bumped up to blocks of 500 plus, with an execution period of 6-12 months.

For the sake of this fun exercise let's just say that new contracts awarded will be 500.

If just each of the existing banks are able to win just 1 new contract per year of 500 ATMs, here's what the numbers will begin to look like. I think I'm being conservative with my figures here, but let's just stick to these figures for now.

* Bank 1 - 500
* Bank 2 - 500
* Bank 3 - 500

Total per year = 1500 ATMs.

End of Year 1 = Additional 1500 ATMs
Plus the 2300 existing ATMs soon to be online.

Total at the end of year 1 = 3800 ATMs.

Note, this is per year.

Now what are these figures going to look like should 2, 5, 10 new banks be added to the mix?

When the market widens their frame just a little bit, they may just realise what the bigger picture the company is working diligently towards. This is what I call exponential growth and this is only for the ATM side of the business!

Tony

Expand

Spot on Tony,
The thing I also like about TSN is that they have a good game plan, funding in place,strategic selecting Salt technology,and addressing any foreseeable flaws. It's taken some time to get to this point , but what a prime position we are now in

TSN Price at posting: 0.7¢ Sentiment: Buy Disclosure: Held
10 Upvote

0 Great analysis

Reply

Top Stories

3DA

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

PNN

Power gets set for 1000-metre maiden drilling program in Brazil

Quit before you're fired: Russia bans uranium exports to USA, duplicating extant US ban

US election outcomes: Key economic and market takeaways

First 45 Last

Add VOR (ASX) to my watchlist