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SIS gains after Q4 PAT stands at Rs 102 cr

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SIS rose 1.45% to Rs 365.45 after the company's consolidated net profit stood at Rs 102.23 crore in Q4 FY21 as against net loss of Rs 3.91 crore in Q4 FY20.

On a consolidated basis, net sales jumped 10.7% to Rs 2,445.21 crore in Q4 FY21 over Q4 FY20. EBITDA dropped 10.9% to Rs 123.30 crore in Q4 FY21 from Rs 138.50 crore in Q4 FY20. EBITDA margin stood at 5% in Q4 FY21 as against 6.3% in Q4 FY20.

Meanwhile, the company generated the highest ever cash flows with total operating cash flow generation of Rs 640 crore with cash conversion at OCF/ EBITDA of 123% for FY21 and 89% for Q4 FY21. This has been on the back of strong collections, lower working capital needs and stable business.

Despite payout of Rs 203 crore for the buyout of the balance 49% stake in SXP in Q3 FY21, the company was able to reduce net debt by Rs 327 crore during the year with the Net Debt/EBITDA stood at 0.7 at the end of the year from 1.35 at the end of FY20.

The cash logistics segment has seen an especially strong year, with March 2021 monthly revenues at 130% of the company's March 2020 monthly revenues.

The facility management segment continues steady demand recovery with a 4.5% QoQ growth in revenues, however for the full year the segment is still down 12% in revenue terms over FY20.

The international business continues to be the standout vertical this year with revenues of Rs 4,530 crore, which is a YoY increase of 22.3%. For the quarter specifically, SIS International had a 5.3% QoQ growth and a 32% YoY growth.

The India security business continued to show steady demand recovery, with March 2021 monthly revenues at 102% of the March 2020 revenues. For FY21 the revenues at Rs 3,488 crore, were flat over FY20, which in probably the biggest crises of the company's lifetimes, re-inforces the resiliience and annuity nature of the services.

Commenting on Q4 performance, Rituraj Kishore Sinha, the group managing director of SIS, said: "FY21 has been a year of validation. 7.6% Y-o-Y revenue growth, highest ever PAT of Rs 367 crs and highest ever OCF generation of Rs 640 crs, in year of GDP contraction underlines 3 unique characteristics of SIS. First, we as essential services are a fundamental need of society leading to inelastic demand. Second, ROCE remains intact at 20% across varying growth years as working capital intensity adjusts. Third, incentivisation of blue-collar job creating sectors, through fiscal measures is govt policy imperative through GDP growth and contraction phases."

SIS is a market leader in security, facility management & cash logistics solutions with operations across India, Australia, Singapore and New Zealand.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Thu, April 29 2021. 11:10 IST
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