SIS spurts after strong Q2 performance

Security and Intelligence Services (India) surged 7.05% to Rs 379 after the company's consolidated net profit jumped 41.9% to Rs 108.1 crore on a 3.3% rise in revenue from operations to Rs 2,157.9 crore in Q2 September 2020 over Q2 September 2019.

Revenue from Security Solutions India business stood at Rs 839.16 crore (down 4.2% YoY), Security Solutions International business generated revenue of Rs 1068 crore (up 18.19% YoY) and revenues from Facilities Management were at Rs 256 crore (down 18.5% YoY) during the quarter.

EBITDA increased by 4.9% to Rs 129.7 crore in Q2 September 2020 from Rs 123.6 crore in Q2 September 2019. EBITDA margin was at 6% as on 30 September 2020 as against 5.9% as on 30 September 2019.

Profit before tax in the second quarter stood at Rs 134.88 crore, up by 163.1% from Rs 51.26 crore recorded in the same period last year. Current tax expense increased by 104.5% year-on-year (YoY) to Rs 31.65 crore during the second quarter.

Commenting on the performance, Rituraj Kishore Sinha, group managing director said, "Our H1 results are a testimony that Essential services like ours have been least impacted during the COVID-19 crisis and are amongst the first to recover. Our H1 revenues of Rs 4,325 crore is a 5.6% increase YoY. With September revenues at Rs739 crore compared to March 2020 revenues of Rs 720 crore, we are already well into recovery phase.

Historically high Operating Cash Flows have led to a Net debt reduction of over Rs 210 crore and Net Debt/ EBITDA declined to less than 1, which has been re-affirmed by our credit rating upgrade from A+ to AA-. Basis macro-economic factors proving favourable, we continue our cautiously optimistic outlook for the rest of the year."

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

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