Hinduja Global Solutions to focus on India, counter Brexit factor in UK

Company's consolidated net profit rises to 6.2 per cent annually to Rs 54.55 crore for the quarter ended March 31.

Business Process Management firm Hinduja Global Solutions (HGS) has said it will focus on its financial services business in India, reckoning the political uncertainty in the United Kingdom could affect some of its public sector business. 

"The India business has always been a very price sensitive business. We were also very heavy on telecom. Over the last two years we have reduced the telecom concentration and now it's about 40 per cent if our (India) revenue. We have increased the financial services pie that is also 40 per cent. We find it is a little less price sensitive than telecom is and that has been one big thing about India," said Partha DeSarkar, chief executive officer of HGS, on Friday.

HGS, which has its headquarters in Bengaluru, reported its fourth quarter and full year results on Friday. 

The consolidated net profit rose 6.2 per cent annually to Rs 54.55 crore for the quarter ended March 31. It reported a sequential rise of 48.4 per cent. 

Revenue from operations grew 27.9 per cent to Rs 1,284.58 crore in the quarter compared with Rs 1,003.88 crore in the fourth quarter of 2017-18. 

Digital revenues as share of total revenues increased from 4 per cent in the last financial year to 7 per cent this year.

"Strategically the big change is in the digital space. We acquired a company called Element Solutions (last year) that brings in digital marketing and new capabilities. That business has done very well for us," said De Sarkar.

US and Jamaica, which accounted for 39 per cent of the company's revenue, gave steady demand and improved margins for the North America business. 

"UK has also improved margins but...with the political uncertainty (and) the new government coming in, a large chunk of our UK business is the public sector business. While the business we have is not uncertain but the pipeline is also largely public sector. If public sector gets delayed because of political uncertainty then that may impact us," De Sarkar said. 

HGS's largest vertical- healthcare and insurance- accounted for 51.7 per cent of overall revenue during the quarter. 

HGS signed 21 new clients during the year, including some large wins in new verticals such as logistics, and expanded its presence in USA, India and Philippines to meet demand. 

At the end of March 2019, HGS had 42,190 employees, and 73 global delivery centres across seven countries.