HGS Q3 net declines 29% at Rs 20 crore

Revenues of the company witnessed growth of 14% to Rs 512.2 cr on y-on-y basis

Hinduja Global Solutions Limited (HGS), the BPO arm of Hinduja Group reported a decline of around 29% in its net profit for the third quarter ended December 31, 2012 to Rs 20 crore when compared with the corresponding period in the previous fiscal, due to one-time non-recurring costs.

The revenues of the company witnessed a growth of 14% to Rs 512.2 crore on year-on-year basis backed by the contribution from Revenue Cycle Management business which it acquired from Deloitte last year.  

“Overall, we have seen a sharp recovery of volumes across all clients in Canada. Margins have improved through better capacity utilisation globally and initiatives taken on cost management. The Revenue Cycle Management business we acquired in October last year is progressing as per plan. Our recent wins in healthcare and consumer sector have improved our capacity utilisation,” said Partha De Sarkar, CEO, Hinduja Global Solutions.

The Revenue Cycle Management business (EBOS) that HGS d in October 2012, has contributed approximately $2.8 million (around Rs 15 crore) to the revenues in the quarter.

The company has 527 active clients as of December 31, 2012, and the client contributing revenues of more than Rs 15 crore in a quarter increased to 9 in the quarter from 7 in the same period last year.  

The shares of the company on the BSE closed at Rs 275.10, down 7.45% as against previous day's close.