Earnings Call Overview
• Date: May 28, 2024
• Transcript Availability: Accessible on the company's website
• Moderator: CEO Sanjay Dighe
• Format: Listen-only mode until Q&A session
Company Background
• Evolution: From a single security service provider in Mumbai (2000) to an integrated facilities management company.
• Services Offered: Housekeeping, staffing solutions, catering, etc.
• Customer Base: Diverse industries across India with strong retention rates.
Financial Highlights
• Q4 FY24 Results:
• Revenue: Rs. 292.2 Cr (52% YoY increase)
• EBITDA: Rs. 18.8 Cr (6.4% margin)
• PAT: Rs. 15.7 Cr (5.4% margin, EPS: 13.58)
• Full Year FY24 Results:
• Revenue: Rs. 1,026.8 Cr (45.1% increase)
• Annual EBITDA: Rs. 68.7 Cr (6.7% margin)
• PAT: Rs. 49 Cr (4.8% margin, EPS: 42.3)
• Proposed Dividend: Rs. 1.50 per equity share (pending approval)
Strategic Insights
• Revenue Split: Approximately 70% government clients, 30% corporate clients.
• Business Development: Focus on integrated facility management (IFM) and recent contract wins.
• Growth Target: Ambitious 30% growth over the next 2-3 years, driven by favorable market conditions.
Operational Focus
• Project Profitability: All current projects are profitable; strategic acquisition process in place.
• Margin Enhancement: Emphasis on service efficiency, recruitment, training, and low attrition rates (17%).
• Market Positioning: Focus on compliance and governance to compete against unorganized market players.
Future Plans
• Training Initiatives: Establishment of a training academy and partnerships with local institutes.
• Geographical Expansion: Plans to increase presence in states beyond Maharashtra and Tamil Nadu.
• Contract Management: Contracts typically last three years with a 65%-70% renewal success rate.
Conclusion
• Optimism for Growth: Targeting 25%-30% annual growth, acknowledging the cyclical nature of the business.
• Team Acknowledgment: Gratitude expressed towards the 41,000 employees for their contributions.