HGS REPORTS Q1 FY2025 RESULTS
Mumbai, India, August 14, 2024: Hinduja Global Solutions (HGS or the Company) (listed on BSE & NSE) today announced its unaudited first quarter results for FY2025.
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Financial Highlights for Q1 FY2025 |
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HGS consolidated (including BPM and Digital Media businesses) · Total income stood at Rs. 1,218.6 crore, a YoY dip of 2.3%. · Revenue from operations decreased by 3.7% on YoY basis to Rs. 1,091.9 crore. · Operating EBITDA was Rs. 16.7 crore; EBITDA margins for the quarter were 1.5%. · Total PAT for the quarter, including discontinued operations, stood at Rs. 161.5 crore. · As on June 30, 2024, Net Cash and Treasury Surplus stood at Rs. 5,177.2 crore. |
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· Client wins in Q1 FY2025:
- Added 24 new logos for digital-enabled CX solutions and 9 for HRO/ Payroll Processing.
- Expanded our engagement with 50+ existing clients for HGS’ core CX and digital solutions (RPA, digital engagement, analytics, cloud and social care, etc.)
· Clientele: As of June 30, 2024, HGS had 344 active CX/ BPM clients and 806 HRO/Payroll processing clients/brands. Digital Media business (NXTDIGITAL) has a customer base of more than 6 million.
· Employee Headcount: 18,036 as of June 30, 2024.
· Geo Presence:
− As of June 30, 2024, HGS had presence in nine countries, including 32 global delivery centers.
− Digital Media business covers 4,500 pin codes covered in India, two lakh kilometers of owned + partner fibre networks, and 125+ owned-and-operated NXTHUBs set up across India.
· Awards & Recognition:
− Recognized as "Strong Contender" in Quadrant Solutions SPARK Matrix: CX Management Services, 2024.
− Recognized in the “The Booming 15 - Service & Technology Provider Standouts – APAC” in the ISG Index 1Q 2024 - Managed Services and As-a service Market Insights.
− Winner in the category of Best Use of Innovation to Enhance CX at 17th Customer Fest Leadership Awards.
− Winner in the category of Best Facial Recognition System at the 2024 AI Breakthrough Award.
− Winner in the category of Best Achievement in Operational Excellence Award at the 2024 Business Transformation & Operational Excellence Industry Awards.
− Won Gold in Sales & Customer Service in Contact Center Solution category at 2024 Stevie® Awards.
· Key Highlights from the Digital Media business:
− Launched the OneBusiness - Commercial Broadband project targeting a new market and business model of providing services to MSMEs & SOHOs. The main product in the portfolio is an ILL or Internet Leased Line for commercial establishments.
− OIL subsidiary completed majority acquisition (51%) of leading Mumbai-based ISP Seven Star’s broadband business; now christened as One7star. The new acquisition has helped in adding 100,000 broadband customers in high ARPU markets.
− Broadband and digital TV subscriber base continued to grow YoY at 14.9% and 6%, respectively, in Q1 FY2025.
Speaking on the results, Partha DeSarkar, Whole-time Director and Group CEO of HGS said: “HGS’ revenues in the first quarter of FY2025 were in line with our expectations, considering the environment of continued macro-economic volatility and delayed decision-making by some key clients. Profitability in the quarter was adversely impacted due to some one-time costs and we expect our profitability to improve from Q2 FY2025 onwards. During the quarter ended June 2025, we received additional payment towards the sale of the healthcare business resulting in net profit of Rs 218.5 crore shown under Profits from Discontinued Operations.
Our pipeline remains healthy, and we are enthused by the increasing demand for our technology-enabled CX services by both new and existing clients as evidenced by the number of new client engagements signed during FY2025, including larger cross-sell deals, across verticals such as telecom and public sector.
HGS is investing in developing tech offerings to support fast growing sectors like BFSI, retail & consumer, and hi-tech. Our aim is to help clients future-proof their businesses through digital transformation as AI becomes more mainstream."
Commenting on the Digital Media division’s performance, Vynsley Fernandes, Whole-time Director of HGS and CEO, NXTDIGITAL said, “The media division took off from where it left last fiscal – driving revenues on the back of a strong customer growth year – in both, broadband & digital television. The focus on monetizing the customer growth is best seen in the revenues from operations, which have continued to grow in Q1. Our investment in premier ISP Seven Star, now christened One7star - has its growth plan firmly on track, expanding into key markets in Maharashtra.
After making inroads into the enterprise connectivity solutions segment with CelerityX last year, we’ve now entered the MSME & Small Office Home Office or SOHO space with OneBusiness – providing Internet Leased Lines to commercial establishments. Again, we’re leveraging our installed capacities and expansive network in key cities like Mumbai as a start - to provide just about every category of commercial establishment with dedicated quality connectivity and high reliability.
We’re also heartened to see the regulatory changes brought about by TRAI in July. These initiatives reflect the Government’s support for the content distribution sector, and we believe digital platforms like NXTDIGITAL will benefit, going forward.”
HGS continues to focus on driving synergies between the tech-led CX and digital media (NXTDIGITAL) verticals by collaborating on building new solutions and enhancing team productivity through automation, etc. Recently, HGS launched the co-developed NetX application that provides customers a unified network-as-a-service solution covering network management.
About Hinduja Global Solutions (HGS):
A global leader in optimizing the customer experience lifecycle, digital transformation, business process management, and digital media ecosystem, HGS is helping its clients become more competitive every day. HGS’ core BPM business combines automation, analytics, and artificial intelligence with deep domain expertise focusing on digital customer experiences, back-office processing, contact centers, and HRO solutions. HGS’ digital media business, NXTDIGITAL (www.nxtdigital.in), is India’s premier integrated Digital Delivery Platforms Company delivering services via satellite, digital cable and broadband to over 6 million customers across 1,500 cities and towns.
Part of the multi-billion-dollar conglomerate Hinduja Group, HGS takes a “globally local” approach. HGS has 18,036 employees in nine countries, including 32 delivery centers, making a difference to some of the world’s leading brands across verticals. For the year ended March 31, 2024, HGS had total income of Rs. 5,087.8 crore (US$ 614.5 million). Visit https://hgs.cx to learn how HGS transforms customer experiences and builds businesses for the future.
Safe Harbour
Certain statements in this release concerning HGS’ future growth prospects may be seen as forward-looking statements, which are subject to a number of risks, and uncertainties as a result of which actuals could differ materially from such statements. Clearly, it is not possible to undertake to update any such statement that may have been made from time to time by HGS or on its behalf.
