- Industry is transforming towards more organized players. Rising compliance with laws and regulations. Rising demand for superior services and quality. Rising per capita income, urbanization and Infrastructure Growth.
- Our Vision 2025, which came into effect in FY21, outlines the goal of transforming our market leadership into market share dominance and transitioning from a Services Company to a Solutions Company.
- Margins in the FM business have improved but are still below pre-COVID levels, and the company is working on further improvements. Cash management business will see further improvement in revenue and profitability.
- OCF to EBITDA conversion was negative due to increase in DSO. Historically Q1 sees weak collections since Q4 has strong collections. Usually collections improve in June itself which didn’t happen this quarter. DSO for Q1 FY24 increased by 6 days.
- Elevated SG&A costs in FY22 and FY23 impacted margins, but actions have been taken to address this and improve margin profiles.
- The VProtect alarm monitoring business has the capability to deliver double-digit EBITDA margins.
- The Australian business is showing an uptrend, and the labor supply situation is easing, which is expected to have a positive impact on performance.
- SIS aims to build all its businesses and sees itself as a platform with separate CEOs and CXOs running each segment. The company is focused on returning to pre-COVID levels of margins for all businesses and expects substantial growth and market share uptick in the post-COVID world.
- Company has maintained 6% EBITDA margins guidance and has refrained from giving topline guidance.
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