Hinduja Global Solutions Q2 profit up over three-fold at Rs 43 crore

BPO services provider Hinduja Global Solutions (HGS) today reported over three-fold jump in consolidated net profit at Rs 42.94 crore for the quarter ended September 30, 2013.

The company had posted a net profit of Rs 11.07 crore in the year-ago period, it said in a BSE filing.

Net sales rose by 32% to Rs 647.25 crore in the July-September quarter this fiscal from Rs 489.23 crore in the same quarter last year.

On the firm's performance, HGS CEO Partha De Sarkar said: "We have had a good second quarter this year and also last year during the same quarter we had problems with foreign exchange."

Besides, the growth has also been driven by a combination of factors such as enhanced volumes across existing clients, addition of new logos and better capacity utilisation at all centres, he told PTI.

Out of the total growth, currency spurt helped the firm gain by about 3-4%, Sarkar said.

"The US continues to perform well and has added 3 new clients in consumer vertical during the quarter, while, Canada received a new line of business from an existing telecom client, which is currently ramping up and is expected to reach full capacity by Q4 FY' 2014, he said.

As of September 30, 2013, HGS had 133 active clients (excluding payroll processing clients). Clients contributing revenues of over Rs 10 crore for the quarter increased from 11 to 16 compared to the second quarter of 2012-13.

Its total headcount stood at 24,669, of which 60% were based in India, 15% in Philippines, 10% in the US, 11% in Canada and remaining 4% in Europe for the quarter ended September 30, 2013.

On hiring, Sarkar said: "Net additions would be about 2,000 for the entire fiscal."

As of September 30, 2013, HGS had a net debt of Rs 41 crore and a net worth of Rs 1,436.4 crore, the firm said in a release.

On outlook, Sarkar said going ahead the company sees strong demand from most of its markets.

"We are very confident of our performance for remaining part of the year. Our optimism is supported by the strong sales pipeline that we have at the moment. The management expects to continue this growth trajectory along with strong profitability going forward," he added.

Shares of the company were trading at Rs 426.55, up 1.90% in the afternoon trade on BSE.