Sagility India Expects Topline To Grow By 14% And Margins To Sustain Over Next Four Years
Shares of Sagility India Ltd., which floated its IPO last week, listed on the bourses at Rs 31.06 apiece on Tuesday.
Sagility India is confident of sustaining Ebitda margins at 25% and growing topline by up to 14% year-on-year over the next four years, the company’s management said, following the listing of its shares on the NSE and BSE on Tuesday.
Shares of Sagility India Ltd., which floated its IPO last week, listed on the bourses at Rs 31.06 apiece on Tuesday, marking a premium of 3.53% over the issue price of Rs 30. The public offer was subscribed 3.2 times, with retail investors leading the demand.
Speaking to NDTV Profit about the way forward, Sarvabhouman Doraiswamy Srinivasan, group chief financial officer of Sagility India, expressed confidence in maintaining margins and driving the topline growth. “From a margin perspective, we are fairly confident that we will be hitting the 23–25% Ebitda numbers, and we have displayed that consistently in the past.”
Srinivasan noted that the company had made significant investments in technology and enhanced work efficiency to boost productivity.
“So, fairly confident to hold (Ebitda) margins at these levels (23–25%). Though there are opportunities to improve margins, we intend to repurpose them and fuel our growth,” he said.
He stressed that a year-on-year organic topline growth of 11–14% is sustainable and the company is confident of meeting it.
On whether the company aims to explore business outside the US, where all its clients are located, Sagility India’s Managing Director and Group Chief Executive Officer Ramesh Gopalan replied in the negative.
“The US healthcare market is a very large industry. It's about $4.7 trillion. That's larger than the GDP of India. It's a very attractive market for us and we are still a very small firm in that large market. We think the opportunities there are huge. At least in the near future, we are going to be more focused on the US market,” he said.
Talking about the company’s plans to expand inorganically, Srinivasan said that mergers and acquisitions are part of the “core DNA” of Sagility India. The business services and solutions provider has done two acquisitions in the past.
“We look for niche capabilities in this market and it just adds more skills to our armour. We are looking for opportunities with mid-market clients and looking for niche capabilities, very specific healthcare domains, problem-solving capabilities and AI companies. Those have always been our targets and we are actively looking at them,” he said.
Shares of Sagility India Ltd. closed 3% lower than its IPO price at Rs 29.10 apiece on the NSE on Tuesday. Meanwhile, benchmark index Nifty 50 closed in the red at 23,883.45, down by over 1%.
