HGS eyes more acquisitions in healthcare space

The company expects profitability turnaround by first quarter of FY17

Hinduja Global Solutions (HGS), the business process management services arm of the Hinduja Group, that acquired Mphasis BPO division in 2015, said it still continues to look for acquisition and inorganic growth will be core for its growth.

“Acquisitions are part of our growth strategy. We continue to look for assets in the healthcare vertical. At present we would like to settle down the Mphasis BPO division acquisition,” said Partha DeSarkar, CEO, HGS.

The acquisition of Mphasis’ BPO division other than adding to the rtopline also gave HGS a larger footprint. Today, the company announced the launch of its new centre in Pune. With an initial capacity of over 320 seats and 600 employees, HGS expects to expand further to touch a headcount of 1,000 by end of FY 2016-17 in the Pune centreBS R.

“We came to Pune because of the acquisition of the BPO division of Mphasis. But now we have set up a new centre. This will cater to the services of one of our domestic telecom client,” said Ramesh Gopalan, executive VP head India operations and healthcare.

The company also said that it will see a turnaround in its profit numbers from the first quarter of FY17. The company's financial performance has been impacted in recent quarters due to pressure in its Canada business. “Our profitability was impacted in a big way due to our Canadian operations. But that is behind us now. We have been able to renegotiate our terms with the clients and those will come into effect from April 1, 2016. You will see our numbers improving from next quarter,” added Sarkar.

The company’s profit numbers have been under pressure for the entire FY16. For the quarter ended December 31, 2015 its profit was down almost 67% at Rs 17.11 crore.