• Labour code impact: The 297 crore rupee provision taken in Q3 was a one-time event, and operations will normalize from Q4 onwards. The shift to cost-plus compliance creates joint liability with clients, which management expects will drive market consolidation away from unorganised players.
• Long-term financial targets: SIS is targeting the 500 crore rupee PAT bracket with consistent 15% year-on-year growth alongside ROE and ROCE of more than 15%. Management expects steady increases in EBITDA, PAT, and stable-to-higher margin percentages starting in Q4.
• Security and facility management: Security solutions is expanding into new segments like mining, metros, data centres, and technology-driven offerings like the VProtect alarm service across 30,000 sites. Facility management revenue growth is projected to exceed the industry average of 12% to 13%.
• Capital allocation strategy: Having returned over 500 crore rupees to shareholders via dividends and buybacks, SIS plans to continue regular shareholder payouts rather than paying down working capital debt. Cash reserves will be deployed into acquisitions and incubation opportunities, such as B2C residential alarm security.
• International business outlook: The international segment is seeing around 20% revenue growth supported by a solid order book, alongside quarter-on-quarter margin improvements. Operations in Australia, New Zealand, and Singapore remain unaffected by geopolitical tensions, with Australian dollar appreciation providing a positive tailwind.