Updater Services Limited (UDS), a leading player in the manpower outsourcing and security services sector, has reported complete utilization of its Initial Public Offer (IPO) proceeds and robust financial results for the first quarter.

IPO Proceeds Fully Utilized

The company raised INR 640.00 crores through its IPO in September 2023, with net proceeds of INR 377.87 crores allocated for specific purposes. According to the monitoring agency report submitted by ICRA Limited for the quarter ended June 30, UDS has fully utilized INR 377.76 crores across four key areas:

ICRA Limited confirmed that the utilization is in line with the objects of the issue, and all completion targets were met on schedule by March 31. Only INR 0.11 crores remains unutilized, which has been carried forward for future use based on approval from the Board of Directors.

Q1 Financial Highlights

For the quarter ended June 30, Updater Services Limited reported strong consolidated financial results:

• Revenue from operations stood at INR 7,002.41 crores
• Total income, including other income, reached INR 7,052.92 crores
• Profit before tax was INR 310.51 crores
• Profit after tax for the period was INR 289.88 crores

The company's performance showed improvement compared to the same quarter in the previous year, with revenue from operations increasing from INR 6,521.65 crores to INR 7,002.41 crores.

Segment-wise Performance

UDS operates in two main segments:

1. Integrated Facility Management Services (IFM)
2. Business Support Services (BSS)

For the quarter:

• IFM segment reported total income of INR 4,767.64 crores
• BSS segment contributed INR 2,376.14 crores to the total income

The IFM segment showed a profit before tax of INR 212.20 crores, while the BSS segment reported a profit before tax of INR 113.95 crores.

Management Changes

In a separate announcement, UDS informed that Mrs. Radha Ramanujan, Group Chief Financial Officer (CFO) and Key Managerial Personnel (KMP), has tendered her resignation effective from September 04. The company has also appointed M/s. R.G.N. Price & Co. as the Internal Auditor for the period from April 01 to June 30.

Updater Services Limited (UDS), a leading provider of integrated facility management and business support services, has announced its financial results for the first quarter, along with significant management changes.

Financial Highlights

UDS reported a consolidated profit after tax of ₹289.88 crore for Q1, showcasing the company's strong performance in the facility management sector. The company's consolidated revenue from operations stood at ₹7,002.41 crore for the quarter.

Key financial metrics for Q1:

The company operates through two main segments:

1. Integrated Facility Management Services (IFM)
2. Business Support Services (BSS)

For Q1, the IFM segment generated a total income of ₹4,767.64 crore, while the BSS segment contributed ₹2,376.14 crore.

Management Changes

In a significant development, UDS announced the resignation of Mrs. Radha Ramanujan, the Group Chief Financial Officer (CFO). Mrs. Ramanujan will step down from her position effective September 4. The company has not yet announced a successor for the CFO role.

Other Key Developments

Internal Auditor Appointment

The company has appointed M/s. R.G.N. Price & Co. as its Internal Auditor for a specified period.

IPO Fund Utilization

UDS reported that it has utilized ₹3,777.56 crore out of the total ₹3,778.70 crore raised through its Initial Public Offer (IPO). The funds have been used for repayment of borrowings, working capital requirements, and pursuing inorganic growth initiatives.

Segment Performance

The Integrated Facility Management Services segment reported a profit before tax of ₹212.20 crore, while the Business Support Services segment achieved a profit before tax of ₹113.95 crore for the quarter.

Balance Sheet Strength

As of the end of the quarter, UDS maintained a strong balance sheet with total assets of ₹15,976.08 crore and a healthy capital employed of ₹9,947.72 crore.

Updater Services Limited continues to demonstrate resilience and growth in the competitive facility management and business support services sector. The company's robust financial performance, coupled with strategic management changes, positions it well for future growth and expansion in the industry.

Investors and stakeholders will be keenly watching how the company navigates the transition in its financial leadership and capitalizes on its strong market position in the coming quarters.