BPO/KPO company Hinduja Global Solutions announced Q1FY24 results: Total income stood at Rs 1,247.6 crore, up 6.8% over Q4FY23. EBITDA margins (including Other Income) improved from 11.5% in Q4FY23 to 15.3% in Q1FY24. Digital Services (Technology Solutions and Digital Media) contributed 37.6% of Q1FY24 operating revenue. Buyback offer of 60 lakh shares at Rs 1,700 per share aggregating Rs 1,020 crore through tender offer completed on June 9, 2023. PAT stood at Rs 16.6 crore. As on June 30, 2023, Net Cash and Treasury Surplus stood at Rs 4,962.0 crore Speaking on the results, Partha DeSarkar, Executive Director and Group CEO of HGS said, “The results for the first quarter of the fiscal have been solid and reflect our transformative ability to adapt in a fast-changing macro business environment. The BPM business achieved operating revenue growth of 7.0% over Q4FY23, along with significant improvement in margins. Our Canadian and UK businesses have performed well in Q1FY24 and we are seeing strong demand, especially in Canada and offshore/ nearshore business. In July 2023, we formally launched our CX hub in Barranquilla, Colombia, and would shortly be doubling our delivery capacity. While the operational performance has improved, PAT for Q1FY24 is lower than Q1FY23, primarily due to a reduction in other income. Teklink, the data and analytics business we acquired in Q4FY23, posted a strong performance and delivered revenues of approx. USD 8.8 million with EBITDA margins of around 22.2%. Our cross-selling efforts have resulted in a robust pipeline, including a couple of wins. The technology solutions business recorded revenues of USD 24.3 million in Q1FY24 and we hope to soon achieve an annual revenue run-rate of USD 100 million. In June 2023, we completed the buyback offer of 60 lakh equity shares for Rs 1,700/share aggregating to Rs 1,020 crore. The buyback initiative was part of the overall program for sharing the value created from the sale of the erstwhile healthcare business with our shareholders. Looking ahead, though global economic uncertainties persist, we remain cautiously optimistic for the year. We are confident that we can navigate the challenges and seize our opportunities with our technology-led, people-driven approach. We will also continue with our cost optimization initiatives, including further real estate rationalization.” Result PDF
Conference Call with Hinduja Global Solutions Management and Analysts on Q4FY23 Performance and Outlook. Listen to the full earnings transcript.