DSIJ Mindshare

Hinduja Global Solutions posts PAT at Rs 20.9 crore in Q4

Hinduja Global Solutions, the business process outsourcing arm of Hinduja Group, has posted 138.41 per cent jump on QoQ basis in consolidated net profit at Rs 20.9 crore for the quarter ended March 31, 2016 as against Rs 17.11 crore in Q3FY16; but is flat on YoY basis. The turnaround in their Canada operations in Q4 helped improve the profitability.

The company’s revenue has grown by 29.3 per cent on YoY basis at Rs 913.9 crore in Q4FY16 and 3.51 per cent on QoQ basis. Its EBITDA has grown by 41.47 per cent at Rs 98.1 crore as compared to operating profit of Rs 69.33 crore in the corresponding quarter of the previous year and 28.03 per cent on QoQ basis. On margin front, EBITDA margin has expanded by 92 bps on a YoY basis at 10.73 per cent while 205 bps on a QoQ basis.

For the entire period of FY16, it has reported 38.8 per cent de-growth in net profit of Rs 101 crore along with 3 per cent margin. Its revenue has grown by 18.5 per cent at Rs 3,328.2 crore. This growth was led by existing and new client wins and their acquisitions made in the fiscal. Its consolidated operating profit (EBITDA) is showing a marginal de-growth by 1.32 per cent at Rs 313.02 crore along with operating profit margin contracting by 190 bps at 9.4 per cent.

Business vertical-wise, Healthcare contributes 42 per cent which is largest proportion of the total revenue. Telecom & Technology, Consumer, BFSI and others constitute by 27, 13, 7, and 11 per cent, respectively, in FY16.

On acquisitions front, Indian domestic CRM business acquired in the year turned profitable; and investments made into building a more robust version of the software product Tuo, and client-facing initiatives, are paying off with several wins, including four in Q4.

The company has recommended a final dividend for FY16 of Rs 1.25 per share, bringing the total dividend for the year to Rs 15 per share.

Currently the stock is trading 5.83 per cent higher at Rs 415.50 on BSE.

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