Security and Intelligence Services Q1 net profit at Rs 58 crore despite Rs 54 crore COVID-related provision

Security and Intelligence Services (SIS) on Wednesday reported a consolidated net profit of Rs 58 crore for the first quarter ended June 30, even as it has made COVID-19 related provision of almost similar amount. Cash logistics and security services firm had posted a net profit of Rs 75 crore in the year-ago period.

During the quarter, the company made provision of Rs 54 crore for uncertainty in the environment, SIS said in a statement.

Revenue for the quarter increased by 8 per cent at Rs 2,166.7 crore as against Rs 2,008.4 crore in the same period a year ago.

The operating profit of the company during the quarter rose 21 per cent to Rs 138.5 crore, compared to Rs 114.8 crore a year ago.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) or operating profit stood at Rs 121 crore at the end of June 30.

"The COVID pandemic and lockdowns have reinforced the essential need for our services, which are a business continuity imperative for a safe workplace and society. The Q1 results establish that our industry is less impacted and will recover quicker than many other sectors.

"COVID will also accelerate market share consolidation as customer focus is shifting towards expertise, reliability and market leaders. Given near term uncertainties, we continue to remain cautiously optimistic and will undertake prudent provisioning policies to factor for unforeseen surprises," SIS Group Managing Director Rituraj Sinha said.

Talking about the cash logistics segment, he said, it continues on its steady path of portfolio rationalisation and margin improvement.

The segment delivered a 68.4 percent annual growth in EBITDA despite a 9.8 percent decline in revenues on account of closure of unprofitable routes and contracts, the statement said.