Hinduja global Solutions Q3 net profit dips over 28 pc to Rs 37 cr

Hinduja Global Solutions (HGS) Friday said its consolidated net profit has declined 28.7 per cent to Rs 36.7 crore for the December 2018 quarter, from the year-ago period.

The company had registered a net profit of Rs 51.5 crore in the October-December quarter last year.

However, HGS saw its revenue from operations growing by 30.4 per cent to Rs 1,272.6 crore in the quarter under review as against Rs 975.7 crore in the third quarter of 2017-18.

"The performance was driven by organic growth of 11.3 per cent, while forex gains accounted for 8.5 per cent and the rest 10.6 per cent was from the acquisitions of AxisPoint Health (APH) and Element Solutions and sale of some APH contracts," HGS CEO Partha DeSarkar said in a statement.

He added that both healthcare and CET (Consumer, e-commerce, telecom and technology) verticals have shown good traction.

"While CET had ramp ups from recent client wins, the health care business is seeing a strong open enrollment season across the US, Jamaica, Philippines and India," he explained.

DeSarkar said to cater to this demand, HGS has opened centres in Bengaluru and Iloilo (Philippines) as well as a centre of excellence for logistics in Jacksonville, Florida.

"As in first half, APH saw challenges in margins in third quarter (Q3); however, with the exit of subscale contracts, we expect profitability to improve significantly going forward," he added.

Shares of Hinduja Global Solutions were trading at Rs 615.80, down 2.31 per cent on BSE.