Krystal Integrated Services, one of the leading management services providers, plans to raise fresh capital of around ₹175 crore to fuel future growth and profitability.

The company intends to expand its presence in the government business. Krystal seeks to list on the stock exchanges this year to enhance its corporate brand visibility, transparency and credibility.

It already provides Integrated Financial Management services to public administration (state government entities, municipal bodies and other government offices), healthcare, education, airports, railways and metro infrastructure, and retail sectors.

Key government customers

Key government customers include Maha Mumbai Metro Operation Corporation and Education Department, Brihanmumbai Municipal Corporation. Krystal provided services to 134 hospitals and medical colleges, 224 schools and college, two airports, four railway stations and 10 metro stations, along with catering services on certain trains/ train routes as of March 31, 2023.

Krystal intends to continue to focus on government customers among others to benefit from and capitalise on favourable industry dynamics as per its CEO and DRHP.

Sanjay Dighe, CEO, KISL said the company can foresee a significant opportunity given its differentiated value proposition of providing high-quality, innovative services at compelling value.

Within the integrated facility management services market, the government sector has grown at a CAGR of 10.4 per cent during Fiscal 2018 – Fiscal 2023, higher than the 6 per cent recorded by the private sector during the same period.

The outsourced integrated facilities management market opportunity from the government sector in FY23 was at ₹49,300 crore and is expected to grow at a CAGR of 16 per cent between FY’23 and FY28 to reach ₹ 1.05 lakh crore.

In Fiscals 2023, 2022 and 2021, Krystal’s revenue from government entities was ₹521 crore, ₹405 crore, and ₹327 crore, respectively, which represented 74 per cent, 73 per cent and 69 per cent of their revenue from operations for the same periods.

Krystal doubled its net profit to ₹38 crore in FY’23 from ₹17 crore in FY21, as per the data in DRHP.

The company’s revenue from operations increased to ₹708 crore in FY’23 from ₹471 crore in FY21. The company achieved a strong CAGR with revenue, total profit, and EBITDA growing at rates of 23 per cent, 51 per cent and 35 per cent respectively during this period.

Its operations are located in 14 states and one union territory across India.