Hinduja Global Solutions Limited (referred to as “HGS” or the “Company”), a world leader in Business Process Management, announced its Unaudited Third Quarter and Nine Months Results for FY2014.
Commenting on the results and performance, Mr. Partha DeSarkar, Chief Executive Officer of
Hinduja Global Solutions said: “We are very pleased to announce our fourth straight quarter of strong financial performance as we continue to set new benchmarks. Despite strengthening of the rupee during the quarter our consolidated revenues, EBITDA and PAT achieved new highs. This robust performance has been driven by strong growth from the US and Canadian markets. The momentum of offshoring has also picked up. Our margins have improved significantly due to better utilization of delivery centers across all geographies coupled with various performance optimization initiatives undertaken during the year. Keeping in view the strong demand, we started two new centers in Alabang, Philippines, one in Princeton, New Jersey and expanded the Bangalore center to service the healthcare sector. We are also focused on strengthening business from the middle-east region during FY2015.
The Company continues to see strong demand for its services and expects to continue this growth momentum with a focus on improving shareholders returns. Our strong sales pipeline and emphasis on new lines of services are expected to drive future growth. Encouraged by this strong performance, the Board has declared second interim dividend of Rs.5.00 per share for FY2014
Consolidated Q3 FY2014 Financial Highlights:
• Net sales increased by 26.0% to Rs. 6,569 million driven by increase in volumes from existing
customers and new client additions
• EBITDA increased by 72.3% to Rs. 919 million. Improvement in EBITDA margins was due to better
capacity utilization levels across all geographies. Continued efforts on performance management and
cost control measures have started yielding results
• PAT increased by 171.0% to Rs. 541 million. This growth was primarily due to lower interest expense
as a result of debt repayment and better working capital management. PAT includes benefits of lower
tax expense due to recognition of MAT credit of Rs.112.61 million, of which Rs.16.98 million
pertained to Q3, Rs.41.26 million pertained to Q1 and Q2 and Rs.54.36 million pertained to earlier
years
• As of December 31, 2013, the Company had Net Debt of Rs. 621 million and Net Worth of Rs. 14,650
million
• Declared an interim dividend of Rs. 5.00 per share, the second for the financial year
Q3 FY2014 Business Highlights:
• The US operation continues to perform as per expectations and has added new clients in BFSI and
consumer verticals
• Canadian operations experienced increase in offshore contribution driven by a new project launched in
Q2 FY2014
• Strong growth across all key healthcare clients for India International operations
• Rationalization of manpower, rate increases and training initiatives have resulted in better profitability
for India Domestic operations
• The Philippines operation received a pilot project from a client in the healthcare vertical for provider
data maintenance and telephonic case management. It also received approvals to increase seats from
the existing healthcare and BFSI clients
• The performance of European operations remained soft and continues to focus on building new
business pipeline in government, retail, consumer goods and telecom sectors
• Appointed Mr. Matthew Vallance as CEO of HGS Europe to expand the operations
• 135 active clients as of December 31, 2013 (excluding payroll processing clients). Clients contributing
revenues more than Rs. 100 million for the quarter increased from 12 to 15 compared to Q3 FY2013
• As of December 31, 2013, total headcount was 25,676, of which 59% were based in India, 17% in
Philippines, 10% in the US, 11% in Canada and the remaining 3% in Europe
Performance Outlook:
• USA: Continued focus on large deals with multi geography delivery model and across verticals
• India: Corrective measures taken during the year expected to result in further improvement in margins
• Canada: Focus on expanding selected services to drive future growth
• Philippines: Profitability may be muted in the near term due to ongoing ramp-ups
• Europe: Increased focus on marketing and branding activities
About Hinduja Global Solutions:
Hinduja Global Solutions (HGS), a part of the multi-billion dollar conglomerate – Hinduja Group, is a
world leader in Business Process Management. The Company provides outsourcing solutions that include
back office processing, contact center services and customized IT solutions to its global clients
comprising several Fortune 500 Companies.
The Company’s targeted solutions are designed for the diversified sourcing and servicing needs of clients.
The Contact Center and Back Office Services Division houses multiple international voice centers and
back office processing units. It provide services to clients in diversified sectors including insurance,
telecommunications, pharmaceuticals, life sciences, banking & financial services, consumer electronics /
products, technology, automotive, government, media & entertainment, retail, hospitality, government & public sector, hospitality, energy & utilities and transportation & logistics.
HGS currently serves approximately 135 clients (excluding payroll processing clients) through its 58
Global Delivery Centers and employs around 25,700 people worldwide. The Company has presence in
Canada, France, Germany, India, Italy, Jamaica, Philippines, the Netherlands, the UK and the US.
Commenting on the results and performance, Mr. Partha DeSarkar, Chief Executive Officer of
Hinduja Global Solutions said: “We are very pleased to announce our fourth straight quarter of strong financial performance as we continue to set new benchmarks. Despite strengthening of the rupee during the quarter our consolidated revenues, EBITDA and PAT achieved new highs. This robust performance has been driven by strong growth from the US and Canadian markets. The momentum of offshoring has also picked up. Our margins have improved significantly due to better utilization of delivery centers across all geographies coupled with various performance optimization initiatives undertaken during the year. Keeping in view the strong demand, we started two new centers in Alabang, Philippines, one in Princeton, New Jersey and expanded the Bangalore center to service the healthcare sector. We are also focused on strengthening business from the middle-east region during FY2015.
The Company continues to see strong demand for its services and expects to continue this growth momentum with a focus on improving shareholders returns. Our strong sales pipeline and emphasis on new lines of services are expected to drive future growth. Encouraged by this strong performance, the Board has declared second interim dividend of Rs.5.00 per share for FY2014
Consolidated Q3 FY2014 Financial Highlights:
• Net sales increased by 26.0% to Rs. 6,569 million driven by increase in volumes from existing
customers and new client additions
• EBITDA increased by 72.3% to Rs. 919 million. Improvement in EBITDA margins was due to better
capacity utilization levels across all geographies. Continued efforts on performance management and
cost control measures have started yielding results
• PAT increased by 171.0% to Rs. 541 million. This growth was primarily due to lower interest expense
as a result of debt repayment and better working capital management. PAT includes benefits of lower
tax expense due to recognition of MAT credit of Rs.112.61 million, of which Rs.16.98 million
pertained to Q3, Rs.41.26 million pertained to Q1 and Q2 and Rs.54.36 million pertained to earlier
years
• As of December 31, 2013, the Company had Net Debt of Rs. 621 million and Net Worth of Rs. 14,650
million
• Declared an interim dividend of Rs. 5.00 per share, the second for the financial year
Q3 FY2014 Business Highlights:
• The US operation continues to perform as per expectations and has added new clients in BFSI and
consumer verticals
• Canadian operations experienced increase in offshore contribution driven by a new project launched in
Q2 FY2014
• Strong growth across all key healthcare clients for India International operations
• Rationalization of manpower, rate increases and training initiatives have resulted in better profitability
for India Domestic operations
• The Philippines operation received a pilot project from a client in the healthcare vertical for provider
data maintenance and telephonic case management. It also received approvals to increase seats from
the existing healthcare and BFSI clients
• The performance of European operations remained soft and continues to focus on building new
business pipeline in government, retail, consumer goods and telecom sectors
• Appointed Mr. Matthew Vallance as CEO of HGS Europe to expand the operations
• 135 active clients as of December 31, 2013 (excluding payroll processing clients). Clients contributing
revenues more than Rs. 100 million for the quarter increased from 12 to 15 compared to Q3 FY2013
• As of December 31, 2013, total headcount was 25,676, of which 59% were based in India, 17% in
Philippines, 10% in the US, 11% in Canada and the remaining 3% in Europe
Performance Outlook:
• USA: Continued focus on large deals with multi geography delivery model and across verticals
• India: Corrective measures taken during the year expected to result in further improvement in margins
• Canada: Focus on expanding selected services to drive future growth
• Philippines: Profitability may be muted in the near term due to ongoing ramp-ups
• Europe: Increased focus on marketing and branding activities
About Hinduja Global Solutions:
Hinduja Global Solutions (HGS), a part of the multi-billion dollar conglomerate – Hinduja Group, is a
world leader in Business Process Management. The Company provides outsourcing solutions that include
back office processing, contact center services and customized IT solutions to its global clients
comprising several Fortune 500 Companies.
The Company’s targeted solutions are designed for the diversified sourcing and servicing needs of clients.
The Contact Center and Back Office Services Division houses multiple international voice centers and
back office processing units. It provide services to clients in diversified sectors including insurance,
telecommunications, pharmaceuticals, life sciences, banking & financial services, consumer electronics /
products, technology, automotive, government, media & entertainment, retail, hospitality, government & public sector, hospitality, energy & utilities and transportation & logistics.
HGS currently serves approximately 135 clients (excluding payroll processing clients) through its 58
Global Delivery Centers and employs around 25,700 people worldwide. The Company has presence in
Canada, France, Germany, India, Italy, Jamaica, Philippines, the Netherlands, the UK and the US.
