I am pleased to share that HGS delivered another strong year with growth in revenueand PAT powered by a robust performance in the healthcare and consumer engagement services(CES) verticals.
Your Company recorded a revenue growth of 8.7% YoY for FY2020 to reach Rs. 52354million ($737 million). EBIDTA increased significantly by 62.4% YoY to Rs. 7165 millionwith margins closing at 13.7%. PAT for the year grew by 16.6% YoY to Rs. 2056 million.HGS' Board has doubled the total dividend to Rs. 20 per share for FY2020. The PAT of Rs.2056 million has been achieved after exceptional costs of Rs. 211 million arising fromimpairment of intangibles of a subsidiary.
These results are the product of several initiatives taken to enable sustainable growthin the last couple of years - from strengthening our value proposition as a technology-ledBPM company building a stronger domain portfolio across our businesses re-skilling/upskilling our people to today's evolving needs and being financially prudent. Kudos toTeamHGS for their hard work and commitment to drive this stellar performance!
Today we are witnessing a change that's bigger than anything we personally have seenbefore. A public health crisis in COVID-19 has turned our lives upside down impacting theway we live work and engage with each other. Both individuals and businesses have beenhit hard leading to an unsettled global environment. While we are already in the middleof a deep recession and the situation is expected to continue till there is a vaccineanalysts suggest that there will be long-term impact too. But what that will be is stilluncertain as has been everything about this pandemic.
Having been part of the Hinduja Group for several years and recently as a Board memberat HGS I have been fortunate to track your Company's journey closely - right from a small23-member team in Bengaluru supporting one healthcare client to a global organization thathas grown rapidly to currently support 907 clients (both BPM and HRO/ payroll) acrossverticals and services. During this journey of over 20 years HGS has lived by the motto"every challenge provides you with an opportunity to excel." We have leveragedthe positive can-do spirit and innovative mindset of our people to create opportunitiesout of challenges surviving and thriving to become one of the top BPM companies in theworld. Today HGS enjoys preferred partner' status with many of its clients.
With everything that's happening around us including the change led by the pandemicwe are focused on being ahead in the steeplechase. HGS is investing significantly insustaining its edge in the traditional sectors such as healthcare where we are marketleaders while looking to broaden our domain competence and build capabilities in adjacentcompetencies in parallel. Our strategy has been to use a combination of developingsolutions in-house and add through acquisitions to deepen our domain expertise and supportclients' needs end-to-end. We have been successful in executing this strategy and areseeing good traction from our clients who are looking for a partner who not onlyunderstands their industry but also has leading technology abilities. A case in point isElement Solutions LLC (now renamed as HGS Digital LLC) in which we acquired a majoritystake in FY2018. A core part of our digital solutions business the unit grew its revenuesby over 18% to reach $18.4 million for FY2020. Over the last 17 months we hiked our stakein HGS Digital LLC from 57 % to 85.66%.
Your company continues to receive recognition from third party organizations andindustry bodies for its solutioning capabilities impact created for clients peoplepractices and CSR initiatives. These laurels are intangible recognition of how HGS isperceived in the market and the ecosystem - a thought leader best place to work and acommunity partner. Inclusion is an area of significant focus at HGS. We continuously lookto create an environment where the best talent can work and give their best irrespectiveof gender background or disability. Some of the achievements seen during the yearinclude:
44% women representation in the HGS India workforce
2000+ AGRIMA graduates (special leadership development program for women belowmanager level)
Around 170 PwD employees in India
7000+ employees in HGS India completed PwD sensitization e-module launched inFY2020
Launch of Equal Opportunity Policy
During this year HGS sold its India Domestic CRM business to focus on the moreprofitable global delivery and digital solutions business. The sale included transferring32 client contracts about 7000 employees and assets at nine delivery centres acrossIndia to the buyer.
HGS continues to be inspired by the principles of Mr. P. D. Hinduja the founder of theHinduja Group whose life experiences have proven to be relevant for the success of yourCompany. We convey our sincere gratitude to HGS Chairman Emeritus Mr. A. P. Hinduja whosevision and perspectives help steer your Company's vision.
Congratulations to the new members of the Board - Mr. Sudhanshu Tripathi Ms. BhumikaBatra Dr. Ganesh Natarajan as well as our CEO Mr. Partha DeSarkar who is now elevatedas Executive Director. I look forward to the active support of the new Board membersalong with guidance of Mr. Anil Harish as HGS continues its growth journey.
Looking ahead we recognize that technology is going to play a bigger role in thecoming years. The massive adoption of digital solutions since the pandemic started hasaccelerated this change. We are therefore investing time and capital to enhance ourtechnology capabilities with the help of the foundation built by our acquisition ofElement Solutions. The HGS of the new decade will be a technology-led BPM servicescompany leveraging artificial intelligence analytics and big data machine learningvirtual reality and IoT (Internet of Things) to offer new-age solutions for our clients'businesses. We are building HGS 2.0 - a company that brings together business technologyand people to drive transformational impact for our clients in their industries.
Finally I wish to express our appreciation to all our shareholders and otherstakeholders for reposing their trust in us and to the rest of TeamHGS for continuing tobuild a strong customer-focused organization.
Yashodhan Madhusudan Kale
September 5 2020