Q1 2025 SIS Ltd Earnings Call Transcript
Key Points
- SIS Ltd (BOM:540673) reported a consolidated revenue increase of 5.1% year-on-year to 3,130 crores.
- India business achieved its highest ever revenue of 1,868 crores, translating to a 6.8% year-on-year growth.
- The bank outsourcing solutions business achieved its highest ever quarterly revenue of 171 crores, with a 12% year-on-year growth.
- The cash business expanded its EBITDA by 130 basis points, recording 17% EBITDA margins and a PAT of 14 crores, translating to 32% year-on-year growth.
- The company is focused on margin improvement initiatives, including rationalizing SG&A costs and weeding out low profitable contracts.
- EBITDA took a small hit of 1.2% year-on-year to 137 crores, largely due to issues in the Australian business.
- The international security business was impacted by leadership changes and loss of profitable contracts, resulting in a 14% year-on-year decline in EBITDA.
- Labor shortages and a 3% increase in minimum wages in Australia are expected to continue affecting margins in the medium term.
- The facility management business in India reported only a 2.2% year-on-year revenue growth, with margins shrinking by 20 basis points.
- The company faces challenges in exiting unprofitable government contracts, particularly in the railway segment, which impacts overall profitability.
Ladies and gentlemen, good day, and welcome to SIS. Limited Q1 FY 25 earnings conference call. (Operator Instructions) Please note that this conference is being recorded. And I now hand the conference over to Mr. Vineet Toshniwal, present PRESIDENT, M&A and Investor Relations from SIS Limited.
Thank you.
And over to you, sir.
So yes, thank you and good afternoon, everyone, and welcome to Q1 FY 25 earnings call. And I hope you had a chance to look at our results, which were uploaded yesterday on the stock exchange and company website.
Now I'm very happy to report that on a consolidated basis, revenue for SIS Group increased by 5.1% year-on-year basis to 3,130 crores, while EBITDA took a small hit of 1.2%, again on a Y-o-Y basis to one 37 crores. This is largely due to issues with our 60 business in Australia.
Now as a group, we continue to retain our focus on margin improvement. We are focused on margins both in terms of cleaning up customer
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