HGS Q1 profit at Rs 40.4 cr, expects strong topline growth in FY'20

Hinduja Global Solutions (HGS) saw its consolidated net profit expand marginally to Rs 40.4 crore for the quarter ended June 2019 from the year-ago period.

The company had registered a net profit of Rs 40.3 crore in April-June, 2018, HGS said in a filing on Monday night.

HGS' revenue from operations grew 17.2 per cent to Rs 1,290.5 crore in the quarter under review as against Rs 1,100.8 crore in the year-ago period. Revenue growth in constant currency terms was 15.3 per cent.

"PAT (profit after tax) was flat in the quarter, primarily due to drop in Other Income arising out of adverse exchange rate fluctuations," HGS CEO Partha DeSarkar said.

He added that HGS' growth momentum continues in the new fiscal and the topline has grown 17.2 per cent, while EBITDA more than doubled in the quarter under review.

"Growth was led by organic expansion and new client ramp-up, especially in the US...Based on the visibility from new wins and a healthy pipeline, we expect to post strong topline growth in the rest of year," he added.

DeSarkar said all the geographies are performing as expected, and AxisPoint Health and India domestic businesses continue to show improvement for the company.

"Our solutions for social care, intelligent automation, analytics and cloud services are seeing big demand from clients. We will increase our investments to build capabilities in these growth areas as we see big opportunities for technology-led services," he noted.

At the end of June quarter, HGS had 241 core BPM clients and 668 HRO/Payroll processing clients, and its employee headcount was at 42,371. The Board has declared an interim dividend of Rs 2.50 a share.