Raghu Tangirala, CMD of Updater Services, which debuted on the stock exchanges Wednesday, aims to keep up the historical revenue growth rates of 20-25% over the next five years.

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In an interview with CNBC-TV18, Tangirala said, “We are last year at about 7% margins, we will hope to improve that by at least about 20-30 points every year. That means, let us say about a quarter percentage year-on-year that is in our business plan.”

The facility management and business support services provider listed on the National Stock Exchange at Rs 285 a piece, a discount of about 5% to its issue price of Rs 300 a share. On the Bombay Stock Exchange, it debuted at Rs 299.90 apiece.

Read Here | Updater Services shares debut at a discount of 5% to IPO price. What should investors do?

Tangirala also shed light on the company’s inorganic growth strategy. Over the last few years, the company has allocated roughly Rs 200 crore from internal accruals towards inorganic growth.

“We will continue throwing up cash, we will throw year-on-year Rs 100 -150 crores of PAT. This money is fungible. So I don't know the target but what we have in our plan, the board has decided that we will add about Rs 25-30 crores of EBITDA year-on-year. EBITDA is what we will want to add inorganically year-on-year,” he said.

He said the company will not consider an acquisition at a margin of less than 7%. He said, “Mostly it could be one company, and the space we will be only in the business services, not in the facilities management."

Updater Services is considering venturing into the fields of Audit and Assurance and Sales Enablement, he said.

(Edited by : Shweta Mungre)

First Published:Oct 4, 2023 4:39 PM IST