Security & Intelligence Services India Ltd's Q3FY18 consolidated net profit rises 113.7% yoy to Rs47cr

Consumer Services

Jan 30, 2018 03:01 IST India Infoline Research Team

Security & Intelligence Services India Ltd Q3FY18

Consolidated Results Q3FY18: (Rs. in crore)

Q3FY18 YoY (%)
Revenue 1,537.70 35.2
EBITDA 84.30 40.7
EBITDA Margin (%) 5.5 22
Net Profit (adjusted) 46.50 113.3
***EBITDA margin change is bps


Reco. Price


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Security and Intelligence Services (India) Ltd (SIS) reported strong growth on revenue and net profit fronts for Q3FY18. Revenue grew by 35.2% yoy to Rs1,538cr. EBITDA stood at Rs84cr, up 40.7% yoy. EBIDTA margin rose by 22bps yoy to 5.5%. Adj. Net Profit stood at Rs47cr up 113.3% yoy.

  • Revenue growth was aided by 40% yoy growth in Security India. This was due to strong volume (Head Count) growth of 19% yoy.
  • Secrurity India EBITDA grew 47.9% yoy, supported by growth in revenues and 37bps yoy expansion in margins, driven by benefits of operating leverage.
  • Security Australia recorded 33.6% yoy revenue growth. Organic growth was 13.4% yoy. The rest was attributable to inorganic contribution from consolidation of SXP from July 2017 onwards. The Management expects the segment revenue to grow 7-10% yoy going forward.
  • Security Australia EBITDA margin dipped by 19 bps yoy despite consolidation of higher margin (~7%) SXP business, mainly due to lower-margin order wins during the quarter.
  • Facility Management posted 28.9% yoy growth, aided by 14% yoy volume growth and increase in revenue per billing employee.
  • Facility Management EBITDA margin expanded by 139bps yoy and 90 bps qoq, likely due to benefits of operating leverage.
  • Each of the above businesses have strong revenue pipeline for Q4FY18 and Q1FY19.
  • Cash Logistics revenue declined by 6.1% yoy due to portfolio rationalization. EBITDA fell 83.6% yoy on account of increased bad debts and back-dated reconciliation claims.
  • SIS has mentioned that it is in process of raising ~Rs1,000cr worth of funds for acquisitions, which may be carried out in FY19 to drive inorganic growth.

Technical View:

Security & Intelligence Services India Ltd ended at Rs. 1,237.80, up by 27.7 points or 2.29% from its previous closing of Rs. 1,210.10 on the BSE.
The scrip opened at Rs. 1,237.10 and touched a high and low of Rs. 1,237.80 and Rs. 1,209.05 respectively. A total of 34,027(NSE+BSE) shares were traded on the counter. The stock traded below its 50 DMA.

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