IKYA Human Capital Solutions

[benhacker]

Has anyone talked about this company with Fairfax?  They have a typo (I assume) in their annual:

 

Shortly thereafter, Thomas Cook India

acquired IKYA Human Capital Solutions run by Ajit Isaac, a wonderful entrepreneur. IKYA is involved in human

resources services, facilities management, skill development and food and hospitality services. The company

employs over 65,000 people, with projected 2014 revenue of $40 million and expected free cash flow of $1.2 million.

 

I assume this is something along the lines of "...they support businesses with a total of 65k employees."

 

Just seems like a glaring error, so I'm curious if there is some technical definition of employee that applies to this business that I'm not aware of (some SEC / SEDAR rule).

 

Any help?

 

Thanks,

 

Ben

[Nnejad]

I believe it's mostly a staffing firm, so it could be that they help companies staff 65,000 people. If the average person made $10k US per year, that's $650mm of wages.... but if IKYA only gets 6% of that, it's $40mm?

I also doubt the average temp in India makes $10k US.

[kmukul]

I think you can contact the investor relations in FFH or Thomas cook and see if they can help clarify. I do expect the wages to be lower but the margins could easily be higher then 6%. Please let us also know if you decide to do that about the experience

[Parsad]

I believe it's mostly a staffing firm, so it could be that they help companies staff 65,000 people. If the average person made $10k US per year, that's $650mm of wages.... but if IKYA only gets 6% of that, it's $40mm?

I also doubt the average temp in India makes $10k US.

 

Nick's correct here.  They mean that they help employ or staff 65,000 people in various businesses and industries.  The older figure on their corporate website says that, but was at 50,000 people staffed.  I think Prem just didn't phrase it adequately, and so it sounds a little like they have 65,000 actual employees working for them.  Cheers!

[benhacker]

Thanks guys, that's probably it.

 

Ben

[Alekbaylee]

This article talks about 75K employees... :/

 

http://www.dealcurry.com/2014066-IKYA-Group-Acquires-Industrial-Asset-Management-Firm-Hofincons.htm

 

IKYA Group, the HR services arm of BSE listed Thomas Cook (India) Limited is acquiring Chennai based industrial asset management company Hofincons Infotech and Industrial Services from Transfield Services Australia.

 

The company did not disclose the value of the transaction however reports peg the deal size to be between INR75 Mn to a billion.

 

The buy further strengthens IKYA’s presence in the business service space whereas for Hofincons it provides a strong financial backing from IKYA’s main parent Fairax Financial Holding.