Hinduja Global Solutions (HGS), a Business Process Management (BPM) player, said while revenues grew by 8 per cent to Rs 1,748.4 crore in the third quarter of FY2022, net profit was up by 28 per cent at Rs 163.8 crore compared to that in the previous quarter. On a year-on-year (YoY) basis, revenues grew by 20 per cent and profit more than doubled.
Executive Director and Group CEO of HGS,Partha DeSarkar, said: “HGS continued its strong growth in the third quarter of FY2022, led by a robust performance in our UK, digital, and healthcare businesses in a growing BPM demand market. Overall revenue for Q3 stood at Rs. 1,748.4 crore, an increase of 20 per cent. We posted a vb117.8 per cent YoY rise in PAT to Rs 163.8 crore. These are our highest-ever quarterly profits. In Q3 FY2022, the Retained Business (CES, HRO, and Digital) grew 22.1 per cent on a YoY basis, while the recently-divested healthcare business grew 18.3 per cent on YoY basis.”
The third quarter was strong due to its healthcare open enrolment programme, holiday season demand, and ramp-ups from recently won clients in the UK and the US. With the aggressive client activity, HGS said it expects strong growth in Q4 as well.
HGS completed the divestment of its healthcare services business in the first week of January 2022. Post completion of the transaction, HGS declared a third interim dividend of Rs 150/share, announced a 1:1 bonus issue as well as a share buyback plan.
However, the markets were disappointed with the payout and immediately after the announcement of the third interim dividend, the stock lost 20 per cent of its value and was locked in the lower circuit. But it has recovered since then and on Friday, HGS shares were trading almost flat at Rs 2,585.3 apiece, though this is a 34.5 per cent fall from its 52-week high.
HGS also said it 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.
The CEO of HGS, DeSarkar added, “We believe these acquisitions will help us expand into new client markets with an already established clientele, strengthen our domain capabilities in the digital and media verticals, while opening up a direct-to-consumer practice in India…. We will continue to build HGS 2.0 through proactive solutioning and acquiring digital capabilities across automation, analytics and AI and cloud even as we look at geographic expansion.”