Updater Services Promoter Raghunandana Tangirala Increases Stake Through Share Purchase

Updater Services Limited , a prominent player in the business services sector, has recently witnessed a significant insider transaction. Raghunandana Tangirala, the Managing Director and Promoter of the company, has increased his stake through a market purchase.

Transaction Details

Raghunandana Tangirala acquired 3,000 equity shares of Updater Services Limited through an on-market transaction executed on the National Stock Exchange (NSE). This purchase has resulted in a substantial increase in his shareholding percentage.

Detail	Before Transaction	After Transaction
Shareholding	14.10%	24.10%

The transaction was duly reported under the Securities and Exchange Board of India (SEBI) insider trading regulations, demonstrating the company's commitment to transparency and regulatory compliance.

Impact and Implications

This insider purchase by a key promoter could be viewed as a positive signal by the market. The substantial increase in shareholding from 14.10% to 24.10% potentially indicates the promoter's confidence in the company's future prospects and current valuation. However, investors should always conduct their own research and not base investment decisions solely on insider transactions.

About Updater Services Limited

Updater Services Limited, previously known as Updater Services Pvt Ltd, is a company that focuses on redefining business services. The company is headquartered in Chennai and operates under the CIN L74140TN2003PLC051955. Updater Services emphasizes values such as happy people, clear purpose, continuous improvement, doing good, and maintaining balance in all aspects of its operations.

Investors are advised to consider multiple factors, including the company's financial performance, industry trends, and overall market conditions, before making any investment decisions.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.94%	-8.68%	-15.92%	-44.81%	-57.03%	-39.92%

Updater Services Limited (UDS) has reported a mixed performance for the second quarter, with its Integrated Facilities Management (IFM) segment showing growth while the Business Support Services (BSS) segment faced headwinds.

IFM Segment Growth

The company's IFM business recorded a 10% year-on-year revenue growth to INR 9,608.00 million in H1. UDS added 14 new clients during the quarter in this segment. However, EBITDA stood at INR 476.00 million, with margins impacted by upfront costs from new strategic contracts still in the ramp-up phase.

BSS Segment Challenges

The BSS segment encountered several challenges:

Overall BSS growth was limited to 1.5% year-on-year.
Denave's demand generation segment faced sluggish demand from a large global customer.
The employee background verification business was affected by the continued IT hiring slowdown.
Athena revenues declined by 20%.

Financial Outlook

Management expects consolidated revenue growth of 9-10% for the full year, targeting:

12-13% growth in IFM
3-4% growth in BSS

Strategic Focus

UDS maintains its focus on:

Private sector clients
Technology-led interventions to improve profitability

Avon Subsidiary Issues

The company took conservative provisions of INR 30.00 million related to receivables under review at its Avon subsidiary, primarily due to lapses in due diligence processes.

Segment-wise Performance

Segment	Performance
IFM	10% YoY revenue growth to INR 9,608.00 million in H1
BSS	1.5% YoY growth overall
Athena	20% revenue decline
Global	30% revenue growth (part of BSS)
Avon	14% revenue drop
Matrix	2.5% revenue decline

Management Commentary

Raghunandana Tangirala, Managing Director of Updater Services Limited, stated, "We acknowledge the fact that we have had a tough quarter. But we would like to assure all our investing community and friends that we remain a well-governed company with a strong focus on doing the right thing."

He added, "Our portfolio of businesses remains very strong, and we believe that the original investment thesis that all of you would have had is very well justified."

Future Outlook

The company expects a stronger performance in the second half of the fiscal year as collection cycles normalize and one-off impacts seen in H1 taper off. UDS is implementing efficiency measures and client-level initiatives to improve performance going forward.

Despite the challenges, Updater Services Limited remains confident in its ability to capitalize on the strong structural growth in the facilities management and business service industry, driven by increasing outsourcing and formalization trends.