Magellanic Cloud Ltd wins order to service 1,848 Branches of a Public Sector Bank

Magellanic Cloud Limited ("MCLOUD"), engaged in majorly three business segments i.e., IT solutions & human capital, E-surveillance, and Drones Manufacturing & allied services, recorded a significant order win in the E-Surveillance Segment from a well-established Public Sector Bank.

MCLOUD, through its wholly owned subsidiary, Provigil Surveillance Limited, has secured an order to supply, install and commission alert based monitoring and control system for esurveillance of a prestigious public sector bank.

The contract is awarded post competitive bidding and will enable MCLOUD to provide ESurveillance services to 1,848 branches of the Bank spread across India for a total period of 5 years.

MCLOUD through this contract will earn revenue of Rs. 6,650 per branch per month and has potential to generate revenues to the tune of ~Rs. 150 Mn per year over the 5 years Contract Period. Considering the size of branches, scale of contract and scope of services, this order will likely yield healthy profit margins.

The Equipment and devices to be installed by MCLOUD uses AI based technology to monitor, detect, and prevent potential theft. Further, this order-win is a testimony of MCLOUD's strong presence in the E-surveillance segment and showcases the trust placed by clients in MCLOUD's team and provision of quality of services.

Commenting on the Order-Win, the Management Team of MCLOUD stated: "We are pleased to share a significant order-win by our subsidiary Provigil Surveillance Limited from a well-established PSU Bank. The order comprises of supply, installation, and commissioning of high end tech based Surveillance Equipment in 1,848 branches of the bank spread across India for a period of 5 years. This order-win further strengthens our existing order-book and will enable us to establish a strong presence in bank branches surveillance space.

The order acts as a testimony to the trust placed by our clients in our client centric, reliable and step ahead quality of services.

We expect to realize revenue of ~ Rs. 150 Mn per year over the five years contract period. Further, the current order will yield healthy EBITDA Margins majorly led by bigger size of branches vis-à-vis ATMs and scale of contract. This will in turn help us to maintain healthy EBITDA margins on a consolidated basis.

This order helps us to get one step closer towards achieving our growth goals and becoming the preferred partner for e-surveillance services to various organizations."

Shares of Magellanic Cloud Ltd was last trading in BSE at Rs. 439.25 as compared to the previous close of Rs. 439.90. The total number of shares traded during the day was 11386 in over 72 trades.

The stock hit an intraday high of Rs. 440.00 and intraday low of 436.60. The net turnover during the day was Rs. 4994884.00.

Source : Equity Bulls

Keywords

MagellanicCloud INE613C01018 OrderWin ESurveillance