SIS declines after Q1 PAT tumbles 24% YoY

Security and Intelligence Services (India) lost 1.73% to Rs 356 after the company's consolidated net profit dropped 23.9% to Rs 57.10 crore on 7.9% rise in net sales to Rs 2,166.73 crore in Q1 June 2020 over Q1 June 2019.

Revenue from the domestic security solutions business stood at Rs 858 crore (up 6.2% YoY), International security solutions business generated revenue of Rs 1020 crore (up 11.7% YoY) and revenues from facilities management were at Rs 293 crore (up 1% YoY) during the quarter.

The company's other expense jumped 51.6% on a year-on-year (YoY) basis to Rs 342.13 crore in Q1 FY21.

EBITDA fell 3.1% to Rs 120.9 crore in Q1 FY21 from Rs 124.70 crore in Q1 FY20. EBITDA margin stood at 5.6% as on 30 June 2020 as against 6.2% as on 30 June 2019.

Profit before tax stood at Rs 77.87 crore in Q1 FY21, up by 38.9% from Rs 56.07 crore in Q1 FY20. Current tax expense increased 3.9% to Rs 23.84 crore in Q1 FY21 over Q1 FY20.

Commenting on the performance, Rituraj Kishore Sinha, group managing director, said: "The COVID-19 pandemic and lockdowns have reinforced the essential need for our services, which are a business continuity imperative for a safe workplace and society. The Q1 results establish that our industry is less impacted and will recover quicker than many other sectors. Covid will also accelerate market share consolidation as customer focus is shifting towards expertise, reliability and market leaders. Given near term uncertainties, we continue to remain cautiously optimistic and will undertake prudent provisioning policies to factor for unforeseen surprises."

Security and Intelligence Services (India) (SIS) operates in three business segments of security, facility management & cash logistics services.

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