Krystal Integrated Services Ltd – Share Analysis – Facilities Management Services Industry

Sorry for the split up. As the Forum post are limited to 40000 character unfortunately i have more than that which not allowed me to post.

Some Q & A, Concall

Training Academy

We have a Krystal Integrated Training Academy which is there one at Vashi. We are going to replicate that in the geographies where we are aspiring to have business.

we signed up an agreement with ITI at Tukkuguda MIDC Industrial Technical Institute and it is a brilliant partnership that we have done there wherein we will train the ITI students in batches at our Tukkuguda office in improving soft skills, interview skills and so on and so forth, CPR, firefighting and all that.

Tax Benefits

The tax rate what you are referring is due to our 80JJAA benefits. So that is the reason why you see our tax components are fluctuating year-on-year.

Receivable Days

Again, receivable days, generally also if you have both government and corporate they are about 70 to 75 days.

Contract Years

This is typically 3+1-year contract, 3-year plus 1 year renewable and after the renewal period then there is a rebidding for that.Some Guidance

• we are going to continue our growth by 25% to 30% year after year . So in that context, if you see the 70% contribution , so that government side will keep on having that contribution. In terms of which are exactly because this is a cyclical process which exactly are contracts which are getting over because they will not get over exactly at the financial year end .

Types of Customers

One is retail, one is key accounts and one is mega accounts .

• Anything which is 10 lakh and less billing for months is retail.
• 10 lakh to 50 lakh three account per month billing
• 50 lakhs and above is major accounts per month billing.

Conclusion

Why would i like to buy this ?

• My Opinion
  • Industry is in growth stage – Man power is required everywhere as India is growth stage – Airports, IT Companies and so on.
  • Company is in growth stage – Geographic’s expansion, catering growth.
  • Very strong presence in One area – Mumbai – Need to track whether they are able to do in Other area too.

Why wouldn’t i like to buy this ?

• My Opinion
  • Competitive Industry
  • Very low to No Pricing power
  • RPT – Related party transactions
  • Revenue concentration – Business wise and Geography wise
  • Working capital intensity.

My point is not to fill up the page but to provide something which will be useful for us. Please like it and comment for further improvement.