Sagility India , formerly known as Sagility India Limited, has received an updated disclosure from its promoter, Sagility B.V., under SEBI Takeover Regulations. The revised filing provides new information on indirectly encumbered shares following a significant share disposal through an offer for sale (OFS).

Share Sale Details

Sagility B.V. sold 703 million equity shares of Sagility India through the stock exchange mechanism. This sale resulted in a substantial reduction of the promoter's holding in the company:

The share sale settlement took place on May 28-29, leading to changes in the percentage of indirectly encumbered shares.

Encumbrance Update

The promoter and its holding companies have financing facilities from international lenders, creating indirect encumbrances on the shares. The encumbrances are held by two security agents:

1. Global Loan Agency Services Australia Nominees Pty Limited
2. The Hongkong and Shanghai Banking Corporation Limited

These security agents act on behalf of various lenders, including CPPIB Credit Investments Inc. and a consortium of international banks.

Financing Arrangements

Two key financing arrangements are highlighted in the disclosure:

1. Mezz Facility Agreement: Sagility Mezz B.V. entered into this agreement on December 5, with CPPIB Credit Investments Inc. as the lender.

2. Facilities Agreement: Sagility B.V. is party to this agreement, last amended on March 22, involving multiple international lenders.

These financing arrangements have resulted in indirect encumbrances on Sagility India's shares.

Regulatory Compliance

The refiling of the disclosure under Regulations 31(1) and 31(2) of the SEBI Takeover Regulations was prompted by requests from BSE Limited following email correspondences dated July 29 and August 11. This revised filing aims to provide transparency regarding the changes in shareholding and encumbrance details resulting from the recent share sale.

Sagility B.V.'s action underscores the importance of maintaining up-to-date and accurate disclosures in compliance with regulatory requirements, especially following significant changes in shareholding patterns and financing arrangements.

Sagility India Limited, a leading healthcare-focused solutions and service provider, has reported strong financial results for the first quarter, demonstrating solid growth across key metrics and raising its adjusted EBITDA margin guidance for the full year.

Financial Highlights

• Consolidated revenues reached ₹15,389.00 million ($180.40 million), reflecting a 25.8% year-on-year growth in INR terms and 23.1% in constant currency.
• Organic growth stood at 17.9% in INR terms and 15.4% in constant currency.
• Adjusted EBITDA increased by 26.5% year-on-year to ₹3,687.00 million ($43.20 million), with a margin of 24%.
• Adjusted profit after tax grew by 38% to ₹1,997.00 million.

Segment Performance

Business Highlights

• Sagility won new business from 18 existing clients and onboarded four new clients during the quarter.
• The total potential annual contract value of new wins is approximately $32.00 million.
• The company closed the quarter with 39,917 employees and maintained annualized attrition at 26.6%.
• Sagility has deployed 18 AI-based use cases for eight existing clients and is working on 15 additional use cases.

Outlook and Guidance

Ramesh Gopalan, Managing Director and Group CEO of Sagility India Limited, commented on the results, stating, "We've entered the fiscal year with continued momentum in our operations. The performance this quarter reflects a differentiated position as a healthcare focus solutions and service provider across both our payer and provider businesses."

The company has raised its adjusted EBITDA margin guidance to 24% plus, up from the previous guidance of 23% to 24%. Management expects to achieve 20% plus growth, including the BroadPath acquisition.

Market Position and Strategy

Sagility's strong performance comes amid increasing cost pressures in the healthcare industry. The company is well-positioned as a partner in bringing about better efficiency in healthcare operations for both payers and providers. Gopalan highlighted the company's focus on transformation and efficiency generation through technology, including AI and automation.

The company is actively exploring opportunities to expand its service portfolio, particularly in the provider segment, and is considering potential expansion into other entities within the broader healthcare ecosystem.

Conclusion

Sagility India Limited's Q1 results demonstrate the company's strong market position and ability to deliver growth in a challenging environment. With its focus on healthcare expertise, technological innovation, and operational efficiency, Sagility is well-positioned to capitalize on the increasing demand for outsourcing and cost optimization in the healthcare industry.