HGS Q1 profit at Rs 49.2 crore, expects strong growth despite COVID challenges


Business, Companies

HGS' revenue from operations grew 1.5% to Rs 1,235.8 crore in the quarter under review as against Rs 1,218 crore in the year-ago period

Hinduja Global Solutions CEO Partha De Sarkar addressing a press conference about the company's business initiatives and growth strategy in Bengaluru. (PTI Photo)

New Delhi: Hinduja Global Solutions (HGS) has registered a 21.7 per cent rise in consolidated net profit at Rs 49.2 crore for the quarter ended June 2020.

The Hinduja Group firm had registered a net profit of Rs 40.4 crore in April-June 2019, HGS said in a filing on Saturday night.

HGS' revenue from operations grew 1.5 per cent to Rs 1,235.8 crore in the quarter under review as against Rs 1,218 crore in the year-ago period.

The company's revenue growth in the June 2020 quarter was at 8.7 per cent year-on-year on like-to-like basis, excluding pass-through revenues and India Domestic CRM business revenues that were included in the first quarter of FY2020.

"Building on its momentum from last year, HGS has started FY2021 on a strong note. The performance in the first quarter was much better than expected, considering the current market conditions," HGS Wholetime Executive Director and CEO Partha DeSarkar said.

"Looking ahead, while we expect a robust Open Enrollment season in the healthcare vertical, given the COVID uncertainties, we are cautiously optimistic for the rest of the financial year," DeSarkar said.

In November last year, HGS had announced sale of its India Domestic Customer Relationship Management (CRM) business to Altruist Technologies.

He added that both Healthcare and CES (Consumer Engagement Services) verticals posted good traction, leading to robust growth in topline (comparable numbers) and profitability.

"Despite challenges posed by the pandemic, we continue to see strong demand for our services, and the advantage we have due to our current portfolio mix is helping us win new logos across verticals, both for short-and long-term opportunities. We are making significant progress on our digital journey too," he said.

The pandemic has opened up a whole-new potential opportunity for HGS and the company is focused on offering new-age solutions that create real outcomes for businesses, he added.

At the end of June quarter, HGS had 227 core BPM clients and 691 HRO/Payroll processing clients, and its employee headcount was at 37,165.

The board declared an interim dividend of Rs 6 a share. It also approved re-appointment of Anil Harish as an independent director for a further period of five consecutive years with effect from September 29, 2020 (second term), subject to the approval of members at the ensuing 25th Annual General Meeting of the company.

It also gave nod to appointment of Narendra Singh, presently Senior Vice President - Secretarial, as the company secretary and compliance officer at the closing of business on September 30, 2020. He succeeds S Mahadevan, who is retiring from the company on September 30, 2020.