Hinduja Global Solutions surges 19%, hits record high on bonus issue plan

The company announced that its board will meet on Thursday, January 06, 2022 to consider proposals for bonus issue of equity shares and interim dividend

Shares of Hinduja Global Solutions (HGS) surged 19 per cent to hit a new high of Rs 3,948 on the BSE in Tuesday’s intra-day trade after the company announced that its board will meet on Thursday January 06, 2022 to consider a proposal for bonus issue of equity shares.

The stock of the company engaged in Business Process Outsourcing (BPO)/ Knowledge Process Outsourcing (KPO) has surpassed its previous high of Rs 3,529 touched on August 12, 2021.

“A meeting of the board of directors of Hinduja Global Solutions will be held on Thursday, January 6, 2022, inter-alia, to consider declaration of interim dividend, if any, for the financial year 2021-22; and proposal for declaration of bonus issue of equity shares,” the company said in an exchange filing.

At 09:39 am; the stock was quoted 9 per cent higher at Rs 3,591 on the BSE, as compared to 0.27 per cent rise in the S&P BSE Sensex. A combined around 131,000 equity shares changed hands at the counter on the NSE and BSE.

For July-September quarter (Q2FY22), HGS had reported strong 67.9 per cent year on year (YoY) growth in profit after tax (PAT) of Rs 136.5 crore. Revenue grew 18.8 per cent YoY at Rs 1,583 crore.

The performance was driven by robust growth in revenues and margins of UK business, digital business as well as the healthcare business. Strong revenue growth coupled with savings from the hybrid working model helped mitigate challenges arising from talent supply constraints to report increased EBITDA margins to 14.3 per cent in Q2, the management said.