SIS Q1 Review – Recovery On The Way: Motilal Oswal

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Security and Intelligence Services Ltd. reported a lower than expected performance in Q1 FY22, led by underperformance in the international business on account of lower revenue from the ad hoc business (also high margin) and two months impact of the lockdown on the India security business.

This led to a sequential decline of 2.7%.

Consequently, Ebitda margin was lower than our expectations (50 basis point) on weaker revenue performance.

While the increase in virus cases and accompanying restrictions impacted April and May 2021, the rebound in June 2021 should reassure investors of its ability to weather the impact owing to its business and geographical diversification.

With the situation expected to further ease out over the next few months, we expect SIS to deliver 12% revenue compound annual growth rate over FY21-23E.

Click on the attachment to read the full report:

Motilal Oswal SIS Q1FY22 Result Update.pdf


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