COVID-19 impact | 2020 becomes breakthrough year for SIS

Dev Dutt Sharma, a sanitation worker, gets ready with the help of a colleague, during an extended nationwide lockdown to slow the spread of the coronavirus disease (COVID-19), in New Delhi

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

The COVID-19 pandemic may have paralysed most of the sectors, especially during the lockdowns. But, there is one industry for which 2020 could be termed a breakthrough year. And, that is the whole gamut of security, facilities management and cash management services, which the government marked as essential earlier in 2020.

So much so, says SIS Group Managing Director Rituraj Sinha, the pandemic has underlined the 'low-beta correlation' that these services have with the GDP growth rate, especially in a downturn times.

"In normal times, the demand for these services were growing at three times the GDP growth rate. Now even though GDP contracted, the demand for our services didn't. We have continued to grow," Sinha told Moneycontrol.

SIS is the country's largest security service provider, the second biggest in facilities management and cash management. Its consolidated net profit had jumped 42 percent to Rs 108 crore in the second quarter, ending September 30. It's EBITDA, or earnings before interest, tax, depreciation and amortisation, stood at Rs 251 crore for the first six months, marginally higher than last year's. Its EBITDA for FY 20 stood at Rs 520 crore.

India's GDP contracted by 7.5 percent in the second quarter, narrowing from the 23.9 percent plummet in the first. While the overall services sector was among the most impacted, shrinking by 15.6 percent, there have been exceptions. SIS for instance, by September it had reached 94 percent of its March revenue business. Its international security operations, concentrated in Australia, was at 121 percent.

"We have seen great collections during the festive season and all our metrics are intact despite the havoc the pandemic has created," Sinha said, about the third quarter performance of the company in India. While he declined to share more, industry observers say demand for security, facilities management and cash management has growth with businesses opening up.

Companies, who have looked at reducing costs by cutting down on discretionary spends such as travel, have continued to spend on maintaining hygiene and sanitation in offices and factories to keep the virus at bay. As Moneycontrol earlier reported, India Inc's sanitation costs have jumped by 25 percent after the pandemic struck.

"A construction company may stop its activity saying it will begin work once demand comes back. Or, companies could cut on travel and instead shift to online calls. But they continue to focus on hygiene and security," said Sinha.

In its statement post the second quarter results, SIS had said that in five out of the six months in H1, "we have seen more collections than monthly invoice value. Customers payment priority in the crisis reflects the value associated with our services."

The company's international security vertical has led the growth, with revenues up by 14.9 percent in the first six months, and EBITDA going up by 30.5 percent.