New Delhi, October 31, 2023: SIS Ltd. (NSE: SIS, BSE: 540673), announced its Unaudited Financial Results for the quarter ended September 30th, 2023.
• Segmental revenues are as follows:
‒ Security Solutions India: Rs. 1,302 cr. in Q2FY24 vs Rs 1,150 cr. in Q2FY23 and Rs.
1,229 cr. in Q1FY24
‒ Security Solutions International: Rs. 1,259 cr. in Q2FY24 vs Rs 1,161 cr. in Q2FY23 and
Rs. 1,243 cr. in Q1FY24
‒ Facility Management Solutions: Rs. 528 cr. in Q2FY24 vs Rs 471 cr. in Q2FY23 and Rs.
519 cr. in Q1FY24
• Return Ratios: ROE of Q2 FY24 was 15.5%; our strong return ratios continue.
• Cash Conversion – OCF/EBITDA on a consolidated basis was 2.3% for the quarter.
Business Updates:
• Security Solutions India: The Security Solutions India business continued its growth momentum with 13.2% YoY growth and 5.9% QoQ growth in revenue for the quarter, and reached Rs. 1,302 Cr. Major wins during the quarter came from the Manufacturing, BFSI, Energy, Logistics, and Real estate sectors. EBITDA margin continues to improve to 5.7% inQ2 FY24, up from 4.4% in Q2 FY23. Our Alarm Monitoring and Response company, Protect, is now servicing over 18,700 connections.
• Security Solutions International: The Security Solutions International business recordeda revenue of Rs. 1,259 Cr. for the quarter which is an 8.4% YoY growth (9.2% in constant currency) and -1.3% QoQ growth (2.8% in constant currency). This growth was primarily driven by new wins in the Mining, Technology, Retail, and Hospitality sectors. The EBITDAmargin for Q2FY24 was 4.0% compared to 3.3% in Q2FY23. EBITDA margins improved by ground 70 bps compared to the same quarter the previous year primarily driven by the margin improvement initiatives implemented which include SG&A rationalization and contract-level reviews.
• Facility Management Solutions: The Facility Management Solutions segment continue edits growth momentum with 12.0% revenue growth YoY and 1.7% growth QoQ for the quarter, reaching revenues of Rs 528 Cr. for the quarter. Major wins during the quarte came from Real Estate, Technology, Government, Manufacturing, and BFSI sectors. The EBITDA margin declined to 4.0%.
• Cash Logistics Solutions: The Cash Logistics segment continues its strong revenue growth with 22.0% growth YoY and 2.3% growth QoQ for the quarter, driven by new wins in cashin transit (CIT) business. The Q2 FY24 EBITDA was Rs. 25 cr., an increase of 14.4% YoY, andQ2 FY24 EBITDA margin was 16.1%. New innovative solutions include Bullion management, Man behind the counter, Value cargo, Cash today, and Cash Process Outsourcing (CPO), etc., and have demonstrated a promising revenue growth of 67% inQ2 FY24 over Q2 FY23.
Commenting on the performance, Mr. Rituraj Kishore Sinha, Group Managing Director said, “SIS, an essential services leader, continues its growth momentum crossing the ₹1,000 cr.monthly revenue milestone. Significantly higher margins of the Security Solutions – India segment aided the improving results. Cash Logistics business continues its high-performance trend with a focus on newer solutions with a higher margin profile. With the Cash Logistics business on a high-performance trajectory, we are now evaluating shareholder value unlocking options.”