SIS Ltd up in the green

SIS Ltd is in the news today, figuring currently among the top three gainers on the BSE. The stock, which had closed yesterday at Rs.415.20, opened today morning 5% higher at Rs.434.60 and went on to an intraday high at Rs.456.20, up 10%. Its 52-week high stands at Rs.560.

Yesterday, two associate firms of US-based Capital Group Companies Inc, sold stakes. SmallCap World Fund sold almost 52 lakh shares and American Funds Insurance sold 10.44 lakh shares at Rs.415/share, through open market transactions.

It is now learnt that the buyers are Abu Dhabi Investment Authority Stable, the sovereign wealth fund of Abu Dhabi purchased 21.95 lakh shares or 1.52% stake, and 360 One Mutual Fund, which bought 2.07% stake or 29.84 lakh shares. Both bought the stakes at Rs.415/share.

The company had ended Q1FY25 with a consolidated revenue of Rs.3130 crore, up 5% (YoY) while EBITDA was hit 1.2% at Rs.137 crore, largely due to issues with our SXP business in Australia. Net profit for the period was down 29% at Rs.64 crore.

The International Security business was impacted in this quarter, largely due to leadership changes and loss of some profitable contracts in the SXP business, which is Australia, and the absence of one-off contractual work at P4G and low unemployment in Australia, which resulted in labor shortage in Q1 FY '25. Traditionally in the April to June quarter, business in Australia and New Zealand is muted compared to the Jan to March quarter, which represents the festive season and also has major sporting events. Its Singapore business, Henderson continues to remain profitable through a combination of cost rationalization, shedding unprofitable contracts and new business growth.