Security and Intelligence Services Q2 net profit rises 42% at Rs 108 crore

Security and Intelligence Services (India) Ltd (SIS) has reported a 42 percent jump in consolidated net profit at Rs 108.1 crore for the quarter ended September 2020. The cash logistics services and security firm’s consolidated net profit in the corresponding quarter of the previous year stood at Rs 76.2 crore, the company said in a regulatory filing. Following the reports, shares of the company climbed 5 per cent.

The company’s revenue rose 3.3 percent to Rs 2,157.9 crore as compared to Rs 2,089 crore in the same quarter a year ago, it said. It further said strong cash flows have resulted in net debt decrease of Rs 213 crore over the previous quarter, according to the company.

“Historically high operating cash flows have led to a net debt reduction of over Rs 210 crore and net debt or EBITDA (Earnings before interest, taxes, depreciation, and amortization) declined to less than 1, which has been reaffirmed by our credit rating upgrade from A+ to AA-,” SIS Group Managing Director Rituraj Kishore Sinha said.

Quarterly numbers are a testimony that essential services like ours have been least impacted during the COVID-19 crisis and are amongst the first to recover, he said.
“Our H1 revenues of Rs 4,325 crore has seen a 5.6 percent annual increase. With September revenues at Rs 739 crore compared to March 2020 revenues of Rs 720 crore, we are already well into the recovery phase,” he said. On the outlook, Sinha said that based on macro-economic factors proving favourable, the company continues to be cautiously optimistic for the rest of the year.