Hinduja Global Solutions net profit more than doubles to Rs1,638 million in Q3FY22

14 Feb 2022 , 10:15 AM

Hinduja Global Solutions (HGS) on Saturday announced its unaudited Third Quarter Results for FY22. Overall revenue for Q3FY22 stood at Rs17,484 million, an increase of 20% yoy, while EBITDA grew by 22% yoy to Rs2,820 million.

The company posted a very strong rise by 117.8% yoy in Profit After Tax (PAT) to Rs1,638 million.

“These are our highest-ever quarterly profits. In Q3FY22, the Retained Business (CES, HRO, and Digital) grew 22.1% on yoy basis, while the recently-divested Healthcare business grew 18.3% on yoy basis.,” the company said in a filing.

For 9MFY22, overall revenues increased to Rs48,815 million, a growth of 21.3% yoy. Healthcare Revenues grew by 13.6%, while revenues from other business grew by 30.4%.

EBITDA stood at Rs7,901 million, a growth of 29.6% yoy. EBITDA margins was 16.2%. Net profit stood at Rs4,173 million, a growth of 102.8% yoy. Net margins was 8.5%.

Total dividend till date, including the dividend of Rs150/share paid in January 2022, stood at Rs195/share.

At around 10.16 am, Hinduja Global Solutions Ltd was trading at Rs2,463.50 per share down by Rs124.4 or 4.81% from its previous closing of Rs2,587.90 per share on the BSE.

Partha DeSarkar, Executive Director and Group CEO of HGS said: “HGS continued its strong growth in the third quarter of FY2022, led by robust performance in our UK, digital, and healthcare businesses in a growing BPM demand market.

As always, Q3 saw significant traction for HGS from the healthcare open enrolment program, holiday season demand, and ramp-ups for recently won clients in the UK and the US. With the aggressive client activity, HGS expects strong growth in Q4 as well.”

He added, “HGS completed the divestment of its Healthcare Services business in the first week of January 2022. This transaction is a recognition of the kind of path-breaking work that HGS has been doing in the last two decades in building its domain capabilities and unlocks significant value for the shareholders.

Post completion of the transaction, HGS has declared a third interim dividend of Rs150/share, announced a 1:1 Bonus issue as well as a share buyback plan. HGS has signed definitive agreements for the acquisition of Diversify Offshore, an Australian BPM company as well as agreed in principle to acquire the digital business of NXTDIGITAL.”