The company's net profit stood at Rs 44.3 crore in the corresponding period of the previous fiscal.
Its revenue from operations stood at Rs 1,100.8 crore during the reported quarter, growing 18.7 per cent over the year-ago period.
"We had acquired AxisPoint Health, which was a loss making company in the US. While we try and fix this, it's going to take a little bit more time to fix the losses. It's on expected lines...I think one more quarter there will be impact...After that we will be back to normal profitability," HGS CEO Partha DeSarkar told PTI.
The other impact has been the increase in minimum wages in Karnataka, he added.
On sequential basis, the company's net profit declined 21.6 per cent (from Rs 51.3 crore in March 2018 quarter), while revenue increased 9.7 per cent (from Rs 1,003.9 crore).
During the June quarter, the company signed nine new logos and expanded relationships with eight existing clients.
"Looking at the sales pipeline, we see big opportunities for our technology-led services, including DigiCX, analytics, cloud services, RPA and machine learning, and continue to invest in strengthening our capabilities," DeSarkar said.
The CEO, however, flagged concern around its India CRM (customer relationship management) business that continues to see "twin pressures of drop in volumes from telecom clients and increase in minimum wages".
The company's board has declared an interim dividend of Rs 2.50 per equity share (25 per cent on the face value of Rs 10 a share) for 2018-19.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)