SIS Ltd reports Highest ever quarterly revenue of Rs. 2,768 Crs Q2FY23

2024-07-25 03:50:14 Business

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New Delhi, November 02, 2022, SIS Ltd. (NSE: SIS, BSE: 540673), announced its Unaudited
Financial Results for the quarter ended September 30th, 2022.

Segmental Revenues are as follows:
‒ Security Solutions India: Rs. 1,150 Crs in Q2FY23 vs Rs 945 Crs in Q2FY22 and Rs. 1,058
Crs in Q1FY23
‒ Security Solutions International: Rs. 1,161 Crs in Q2FY23 vs Rs 1,156 Crs in Q2FY22
and Rs. 1,205 Crs in Q1FY23
‒ Facilities Management: Rs. 471 Crs in Q2FY23 vs Rs 336 Crs in Q2FY22 and Rs. 428 Crs
in Q1FY23
? Return Ratios: RONW (based on proforma trailing 12 months PAT) is 18.0%, our strong
return ratios continue.
? Cash Conversion - OCF/EBITDA on a consolidated basis was -27.8% for the quarter which
is a direct result of the business growth and overall increase in DSO for the quarter. 8.8%
Q-o-Q and 10.1% Q-o-Q revenue growth in Security Solution India and Facility
management business respectively are the main drivers for decrease in OCF/EBITDA.

Business Updates:
? India Security Solutions: The India security business continued the growth momentum
with 8.8% QoQ and 21.7% YoY record organic growth in revenues and reached Rs. 1,150
Crs which is the highest in our history and clearly indicates that growth is back in India.
Major wins during the quarter came from Oil & Gas, Healthcare and Education segments.
EBITDA margin for Q2 FY23 improved to 4.4% from 4.0% in Q1 FY23.
? International Security Solutions: The International business recorded a revenue of Rs.
1,161 Crs which is a -3.6% QoQ decline and a 0.4% YoY increase over the same quarter in
the previous year. After adjusting for the impact of temporary high margin covid related
contracts reducing to a miniscule level in Q2 and special events revenue in Q1, the
business grew 3.6% in constant currency on a normalized basis. As expected and indicated
earlier, the EBITDA margins in Security Solutions ? International business witnessed a
decline in Q2 FY23, to 3.3%. This decline is a temporary phenomenon which is caused by
a landmark wage increase in Australia. The closure of all COVID related temporary high
margin contracts also contributed to the decline in the EBITDA margins during the
quarter. The gap caused by these timing differences is expected to be eliminated by Q3
FY23 and the full quarter effect will be visible in Q4 FY23.

Facility Management Solutions: The Facility Management segment continued its strong
recovery with a revenue growth of 10.1% over Q1 FY23 and 40.1% over Q2 FY22, reaching
revenues of Rs 471 Crs for the quarter. Major wins during the quarter came from
Healthcare, Education, Commercial spaces and retail segments. The EBITDA margin was
4.4% in Q2 FY23, which is stable compared to 4.5% in Q1 FY23.
? Cash Logistics Solutions: The Cash Logistics segment continues its strong revenue growth
with a revenue growth of 4.2% over previous quarter and 41.5% over Q2 FY22 driven by
new wins in Door-step banking and Cash Processing Outsourcing 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, ?On the completion of 5 years since being listed, which included two difficult years
impacted by the COVID-19 pandemic, we look back with a quiet sense of satisfaction of
having built a highly stable and predictable business, resilient to economic variations, de-
risked from a geography and industry perspective, which consistently delivered revenue
and business growth every year and continued distributions to shareholders in the form of
dividends and buybacks every year.?

About SIS Limited (SIS):

SIS is a US$ 1.3 Bn, Indian Multinational and Essential services Market Leader in India, with over 2,70,000 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.