Security & Intelligence Services India Ltd Q3FY18
Consolidated Results Q3FY18: (Rs. in crore)
|EBITDA Margin (%)||5.5||22|
|Net Profit (adjusted)||46.50||113.3|
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.
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.