New Delhi, July 26, 2022, SIS Ltd. (NSE: SIS, BSE: 540673), announced its Unaudited Financial Results for the quarter ended June 30th, 2022.
Segmental Revenues are as follows:
‒ Security SolutionsIndia: Rs. 1,059 Crs in Q1FY23 vs Rs 881 Crs in Q1FY22 and Rs. 1,037Crs in Q4FY22
‒ Security Solutions International: Rs. 1,205 Crs in Q1FY23 vs Rs 1,201 Crs in Q1FY22 and Rs. 1,237 Crs in Q4FY22
‒ Facilities Management: Rs. 427 Crs in Q1FY23 vs Rs 305 Crs in Q1FY22 and Rs. 386 Crs in Q4FY22
• Return Ratios: RONW (based on proforma trailing 12 months PAT) is 17.7%, our strong return ratios continue.
• Cash Conversion - OCF/EBITDA on a consolidated basis was 4.2% for the quarter which is a result of the business growth and deployment of new large contracts during the quarter
leading to an overall increase in DSO for the quarter. 2.1% Q-o-Q and 10.6% Q-o-Q revenue growth in India Security and Facility management business respectively are the main drivers for decrease in OCF/EBITDA.
• India Security Solutions: The India security business continued the growth momentum with 2.1% QoQ growth in revenues and reached Rs. 1,059 Crs which is the highest in our
history and indicates a strong growth revival over the past few months. Major wins during the quarter came from Healthcare, Education, IT and BFSI segments. During the quarter, we rolled out annual salary reviews and incentive pay outs during the quarter which suppressed the EBITDA margin, despite this EBITDA margin for the Q1 FY23 improved to 4.0% with our sharp execution and improved systems.
• International Security Solutions: The International business recorded a revenue of Rs. 1,205 Crs which is a -2.5% QoQ decline. 0.4% YoY increase over the same quarter in the
previous year. This decline is primarily due to the expected winding down of temporary covid related contracts which was partially offset by the increase in revenues from existing customers and segments that were hit by the pandemic and its restrictions. The new wins during the quarter are AUD 10 Mn annualized value. The EBITDA margin for the international business was 4.9% in Q1 FY23, which is lower than the 5.4% in Q4 FY22, the margin is settling towards our pre-Covid normal levels as temporary Covid contracts with exceptional margins wound down.
• Facility Management Solutions: The Facility Management segment continued its strong recovery with a revenue growth of 10.6% over Q4 FY22 and 39.8% over Q1 FY22, reaching
revenues of Rs 427 Crs for the quarter. Our focus on healthcare, manufacturing, education, and E-commerce / Logistics segments has paid off and has helped us win new
clients. The EBITDA margin was 4.5% in Q1 FY23, which is higher than 4.3% in Q1 FY22.
• Cash Logistics Solutions: The Cash Logistics segment continues its strong revenue growth with a revenue growth of 7.8% over previous quarter on a normalized basis and 46.0%
over Q1 FY22 driven by new wins in Door-step banking and Cash in Transit business. The EBITDA margins also continue to improve and is a testament to the high margin nature of the cash logistics segment.
Commenting on the performance, Mr. Rituraj Kishore Sinha, Group Managing Director said, “Our Q1FY23 results illustrate the predictability of our business model, as an essential services business, which continues to grow at a healthy rate, with the economy growing post pandemic. Also, we are very proud to be recognised as the #4 Best Employer to work, for FY22, by Great Place to Work.”
About SIS Limited (SIS):
SIS is a US$ 1.3 Bn, Indian Multinational and Essential services Market Leader in India, with over 2,50,000 employees. SIS is amongst the Top 10 private sector employers with over 400 offices across 650 districts. SIS is #1 in Security Solutions, #2 in Facility Management and #2 in Cash Logistics segments in India. It is also the largest Security Solutions company in Australia.
User :- Trinita Chaliha