Companies

SIS India eyes double-digit domestic growth

Abhishek Law Kolkata | Updated on February 15, 2021 Published on February 15, 2021

Rituraj Sinha, Group Managing Director, SIS India

Posted highest quarterly revenue in company’s history in December 2020, at ₹2,358 crore

As international operations drive recoveries, the country’s largest security services and facility management company SIS India (BSE listed) is looking to get back to double-digit growth in India, its largest market.

“New contracts” as the economy opens up in the post-pandemic phase, government’s focus on infrastructure and increasing market share from unorganised players look to be the plus points in its expected ‘V-shaped revenue recovery’ journey.

While India businesses registered 8 per cent growth, international businesses (across Australia, Singapore and New Zealand) grew at 11 per cent.

SIS India expects higher revenues from strong global operations

According to Rituraj Sinha, Group Managing Director, SIS India, overseas operations are a “perfect counterbalance” to India business, especially in a slowdown year.

“Our nine-month results firmly establish the V-shaped recovery at SIS. The Q3 operating cash flow of ₹213 crore is higher than operating cash flow of FY20,” he told BusinessLine.

With festival boost and unlock, security services firm SIS India eyes growth pick-up

Outlook

For the quarter ending December 31, 2020 (Q3FY21), revenues stood at ₹2,358 crore — the highest quarterly revenue in the company’s history.

The India security services segment is operating at 97 per cent of March 2020 level (pre-Covid) while international operations are at 136 per cent.

In terms of revenue growth, India operations remained flat for a nine-month-period (April to December).

“India revenues show an increase in Q3 ( by 6 per cent over Q2FY21) on the back of revival in the economy and festival demand-led growth,” Sinha said.

In international operations, apart from strong ad hoc revenues in Australia, there has been a rebound in aviation and special events. Retail stores opened up. In New Zealand, revenues were up due to contract additions in Q2 and strong pick-up in events business.

Facility management segment, which accounts for 12 per cent of turnover, is operating at 83 per cent of pre-Covid levels. It saw an 11 per cent sequential growth but a YoY decline of 15 per cent. The business (facility management) has “sizeable exposure” to Railways, Hotels, Education and IT spaces, which are yet to revert to full capacity operations.

“We were often asked why we need to continue with overseas ops when India business was growing in double digits. The pandemic year proved once again why overseas business is the perfect counterbalance to India ops. We will surely get to double-digit growth here in India,” he added.

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Published on February 15, 2021
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