AGENDA

• Introduction
• Business Segment
• Geographic’s and Customers
• Management Structures
• Industry Analysis
• Competitive Analysis
• Financial Analysis
• Technical Analysis
• Risk Analysis
• Some Q & A and Concall
• Summary

Introduction

Business Segments

Integrated Facility Management

Soft Services

• Housekeeping / Cleaning / Janitorial
• Disinfection & Sanitation
• Landscaping & Gardening

Hard Services

• Pest Control Services
• Mechanical Maintenance Services
• Electrical Maintenance Services
• Plumbing Maintenance Services
• Heating, Ventilation & Air-conditioning (HVAC) Services
• Façade Cleaning
• City Maintenance Services
  • Municipal Sewage Treatment
  • Solid Waste Management

Other Services

• Catering
• Production Support Services
• Warehouse Management
• Airport Management
• Multi-level Parking
• Airport Traffic

Staffing and Payroll Management

Private Security and Manned guarding

Access control: We ensure that only authorized personnel are allowed to enter the facility and control the movement of people within the facility.

Surveillance: We monitor the facility using CCTV and other surveillance systems and respond to any security breaches or incidents.

Patrols: We regularly patrol the facility to detect and deter any suspicious activity or potential security threats.

Emergency response: We provide services in case Of emergencies including fire, medical emergencies, or criminal activity.

License: To engage in the business of a private security agency under PSARA in 12 states and one union territory .

Catering

• Foods Customised by the customer, including breakfast, lunch and dinners for employees. We also provide traditional snack items.

• Our central kitchen located in Kalina.

• In Fiscal 2021, 2022 and 2023 and six months ended September 30.2023 , we offered catering services to 13, 47, 67 and 52 customers, across 17, 60, 72 and 63 customer locations in India .

• Our major customers for these services (provided through Krystal Gourmet ) include Tema Speciality Hospital & Research Centre .

Geographic’s & Customers

Management Structure

Management

Industry Analysis – IFMS

GLOBAL INTEGRATED FACILITY MANAGEMENT MARKET

Outsourced Facility Management Market: Historic Revenue Trend and Forecast. Global. CY2018 — CY2027

Total integrated Facility Management Market: In-house versus Outsource, India FY2023

Integrated Facility Management Market by Services

Total Integrated Facility Management Market: Outsourcing Trends- India- FY2013- FY2018- FY2023 and FY2028

Outsourced IFMS: Breakdown End-user Sent India FY2023

Outsourced IFMS Breakdown Gov vs Private FY2023

Soft Services

Hard Services

Other Services

CATERING SERVICES MARKET

The Catering Services market is highly fragmented with close to 60-70% of the total market dominated by unorganized companies and the remaining 30-40% of the market with organized companies .

STAFFING AND PAYROLL

Segmentation by Services, FY2023, India

PRIVATE SECURITY/ MANNED GUARDING SERVICES MARKET

Competitive Analysis – IFMS

• The top four companies IFMS Market are Sodexo, BVG, Quess Corp, and SIS Limited.
• They have a combined market share of 6-8% of the total market in FY2023.

Competitive Analysis – IFMS

Financial Information of Major Companies. India FY2022

Financial Information of Major Companies. India, FY2023

Segmentation by Services

Soft Services

• Soft Services is extremely fragmented in India with the market leader BVG having a share of 4.4% of the total market in FY 2023.
• The top five companies in this segment are BVG, SIS Limited, Quess Corp, UDS, and Sodexo.
• These five companies account for a combined share of 19.8% of the total market in FY2023.
• Krystal is the sixth largest Soft Services company with a market share of 2.6% in FY2023.

Hard Services

The competitive structure is very similar to the Soft Services segment.

• For example, The top two companies in this segment

Re Sustainability (Ramky Enviro) and Anthony Waste are predominantly into waste management services and water and wastewater treatment solutions and services business .

• Major Integrated Facility Management Services companies present in Hard Services are BVG, SIS Limited, Sodexo, Quess Corp, ISS, UDS, Compass, Krystal among others .

Other Services

• Sodexo is the market leader with a share of 2.8% of the total market in FY2023.

• Other major companies in this segment are Quess Corp, SIS Limited, Compass, UDS, BVG, CRCL, ISS, Krystal among others.

CATERING SERVICES

• The Catering Services market is highly fragmented with close to 60-70% of the total market dominated by unorganized companies and the remaining 30-40% of the market with organized companies .
• Within the organized segment, Sodexo, ISS, CRCL, Krystal, Proodle Hospitality, Comprehensive Support Services (CSS), ISG Hospitality Service, Compass, and Quess Corp are some of the major players. Catering companies are promoting.

WAREHOUSE MANAGEMENT SERVICES MARKET

• Based on the above analysis, the Warehouse Management Services Market is forecast to grow at a CAGR of 12.0% from FY2023 – FY2028 to reach INR 211,761.25 million.

• The market is highly fragmented in India and the organized sector accounts for around 40% of the market while the remaining 60% is accounted for by the un-organized sector companies.

• Both Multi-National Companies (MNC) and local companies . MNC companies mostly operate in Tier 1 and Tier 2 cities while Tier 3 cities are mostly catered to by the local companies. The major companies present in the organised sector are D V Shankar, Mahindra Logistics, Blue Dart, Toll logistics, DHL, Kuehne Nagel and Ceva Logistics.

• A few of the Facility Management companies providing Warehouse Management Services in India are UDS, Krystal, Impressions, and OCS Group.

Competitive Analysis – Staffing and Payroll

• The competitive landscape is highly fragmented in India . Is it estimated that more than 1,000 companies are operating in this space in India. The organised market consists of 20-30 companies and is dominated by international and national companies.

• Major players in this segment include Quess Corp, Teamlease, First Meridian, Randstad, Manpower Group, Adecco, Datamatics Staffing Services Limited, Collabera, Artech Infosystems Pvt. Ltd., Kelly Services etc .

• General Staffing and IT Staffing are the major segments in Staffing and Payroll Management Services Market in India with a combined market share of 65.2% of the total market in FY2023 .

• General Staffing Segment in India is a nascent industry when compared to developed markets like the USA, Japan,and Italy.

• General Staffing segment witnessed a strong growth of 15.3% in new jobs added in FY2023 at around 1.47 lakh jobs across the segment, as per the Indian Staffing Federation.

• This is expected to increase the industry share from the present 5.0% to 20.0% in the next five years.

• The market is extremely fragmented in India , with more than 20,000 companies operating in this market.

• The organised segment comprised of about 40-45% of the total market in FY2023.

• SIS Limited is the market leader in this highly fragmented market with a share of 2.0% in FY2023 .

• SIS Limited, G4S, Checkmate, Peregrine, ISS, Sentinels, Securitas, Global Security Services, Krystal etc . are some of the major companies operating in this market in India.

Competitive Analysis – Financial Benchmarking

EBITDA margin Trend (Source: Nuvama)

Revenue growth Trend (Source: Nuvama)

ROE profile of key players growth Trend

Financial Analysis

Revenue Segments wise

Revenue Geography wise

Revenue Model

1. Government – B2G
2. Private – B2B

Revenue Sector Wise

KPI Analysis

Risk Analysis & Key Trackers

• Revenue Concentration top 5, 10, 15.

• Government Contracts plays a major role – Contracts for 3 years.

• Bids and Wins

• Geographics Concentration
• Major revenue is derived from only one segment.
  • For the six months ended September 30, 2023 and Fiscals 2023, 2022 and 2021, our revenue fromintegrated facility management services has contributed to 56.62%, 60.38%, 58.46% and 71.04%
• Manpower intensive business – High Attrition Rate
  • Attrition rate for Fiscals 2021, 2022 and 2023 and the six months ended September 30, 2023 was 22.00%, 35.88%, 31.38% and 12.98%

• Contract Renewal and Extension

  • In 2021, 2022 and 2023 & six months ended 30, 2023, we were able to successfully extend or renew Nil, 40.00% and 42.86% and Nil of our government contracts that were expiring in the respective years.
  • Government Contracts plays a major role – Contracts for 3 years.

• Expense – Biggest is from Employee Benefits

  • Employee benefit constituted the largest component of total expense representing 84.12%, 88%, 89.31% and 86.01% of our total expenses for six months.

• No Background Verification for employee

• Trade receivables

  • Trade receivables constitute a significant portion of total assets, and were representing 48.35%, 43.56%, 59.64% and 59.16% of our total assets as on September 30, 2023, March 31, 2023, 2022 and 2021 , respectively.
  • Our trade receivables outstanding for over six months were representing 11.67%, 19.76%, 13.02% and 15.51% our total trade receivables as on September 30, 2023, March 31, 2023, 2022 and 2021.
  • Our balance write offs from trade receivables were Nil, 0.04 mn, 0.03 mn and 0.76 mn as on September 30, 2023, March 31, 2023, 2022 and 2021.

• Complaints Against the Company

  • September 30, 2023 and Fiscals 2023, 2022 and 2021 , the number of physical and written complaints received by our Company from our customers were 41, SO, 5S and 77, respectively.

• Contingent Liabilities

• RPT

Subsidiaries & JV

1. Flame Facilities Private Limited (“FFPL”)

FFPL is authorized to carry on the business of providing facilities such as House keeping, security management, financial consultant, consultancy in commercial, financial, taxation, arrangement of management personnel, training and placement of security guards, developing human resource etc. as authorized under the objects clause of its memorandum of association.

1. Krystal Gourmet Private Limited (“KGPL”)

KGPL is authorized to came on in India Of abroad the business of Importers, exporters, manufacturers, buyers, sellers, suppliers, traders, producer, merchants, hire purchase dealers, brokers, stockiest, distributors Of otherwise dealing in natural food extracts, food products, fast foods including instant food mixes, processed foods, dehydrated foods, health foods, farm products, fruits, vegetables, pulses, juices, jellies, ice creams, jams, tea, coffee, cocoa, chocolate, spices and condiments, cookeries, bakery, confectionery, groceries, poultry, eggs, vegetable oils, vegetable ghee, sausages, prawns, potted meat, table delicacies and masalas, vinegar acetic acid, glucose, wines, spirits, beers, porters, yeast, pickles, ciders preserved food and of such other related ingredients.

BVG & Krystal Joint Venture (“BKJV”’)

BKJV was set up for providing all types of security solutions, including supply of security personnel, protection of property, house-keeping and all other relevant and incidental work.

Krystal Nangia JV

In case the bid for the proposed project is not awarded to the Nangia JV, the JV Agreement will stand terminated.

I think it’s the case with all the AHFCs like Aavas also.
Though it’s not a good practice to compare on a PE basis, they have been derated from PE around 40 to 25 currently.

None of the AHFCs have shown any price appreciation during this bull run.

Sooner or later they have to show the price appreciation reflecting the AUM growth.

Just to give an idea on growth rates… Radico has done 60% and 110% volume growth in FY24 & FY23 respectively in its lux segment (Rampur whiskey + Jaisalmer Gin). Rampur whiskey is a direct competitor of Indri.

You can draw your own conclusions on revenue & margin from Indri assuming 150k / 250k cases in FY25 and FY26 respectively. Add to that Camikara rum that’s going to show volumes in FY26 once the next production run is ready to be bottled.

Don’t forget the 50 lac cases worth of Malta they sold in FY23 and prolly similar in FY24. Whiskey wouldn’t be substantial portion.

Sharing my experience why I had exited this company. It could be just my way of observing things. I could be 100 % wrong also.

• Hardly any presence this company on any social network. We all know Today’s era of Digital marketing
  -Very cheap WordPress website, hardly works.
  -In last concall someone asked, there is a business named focus lighting register in USA. Mr Sheth was completely unware of the that company which seem to be very famous Hows that possible.

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