Hinduja Global Solutions Q1 net falls 20% to Rs 41.5 crore

Hindustan Times Aug 12, 2017 12:00 pm
Its operating revenue, however, was up 1.9% to Rs 927.1 crore for the reported quarter as against Rs 909.5 crore in April-June, 2016.
Its operating revenue, however, was up 1.9% to Rs 927.1 crore for the reported quarter as against Rs 909.5 crore in April-June, 2016.(Representative photo)

Hinduja Global Solutions (HGS) said on Saturday its net profit declined 20% to Rs 41.5 crore for the quarter ended June 30, 2017.

The company’s net profit stood at Rs 51.9 crore in the year-ago period, HGS said in a statement.

Its operating revenue, however, was up 1.9% to Rs 927.1 crore for the reported quarter as against Rs 909.5 crore in April-June, 2016.

“June quarter has traditionally been a soft quarter for HGS. In line with this trend, topline in first quarter posted a moderate growth of 6.4% year-on-year in constant currency terms,” HGS CEO Partha DeSarkar said.

Revenue growth and margins in rupee terms were muted, mainly due to adverse forex impact of 4.5% from a strong rupee and lower profitability of India domestic business, he added.

“Looking ahead, we see a robust pipeline led by our investments in client-facing activities and technology-led solutions in automation, digital and analytics. As with previous years, we expect second half to be better than the first half (April-September),” he said.

HGS’ capex and investments stood at Rs 39.5 crore at the end of June 2017 quarter.

It had 44,877 employees as on June 30, 2017.

The company received about 65% of revenues from the US, 11% from Canada, 8% from the UK and Europe and 16% from India.

“Revenue growth in the first quarter was mainly driven by domestic revenues, aided by a decent 10.3% year-on- year growth from healthcare, with US dollar originating revenues growing 5.2% year-on-year,” HGS said in an investor presentation.

The Board has declared an interim dividend of Rs 2.5 per share.

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