According to the Prospectus for the TSI India Buyout (published Dec 2021), TSI has AUD $24 million in borrowings, and about $48 mill in total liabilities.
Another risk raised in the Prospectus is that 70% of TSI's annual revenue comes from a 6-year contract with one customer, due for renewal in Dec 2022. It doesn't state who the customer is. Let's hope TSI "exceeding the deliverables in its ATM contracts forseveral other major Indian Banks" means they get renewed. If they don't, I can see things turning pear-shaped quickly.
I also find it interesting that a 20% increase in ATMs results in such a healthy increase in expected EBIDTA. I've taken a position in the hope that their estimates are reasonable, and that the market missed the positive financial message in this announcement (due to the understated heading and the general lack of interest). It's not often the market is wrong, but we'll see!
VOR Price at posting:
2.5¢ Sentiment: Hold Disclosure: Held
