Shares of Hinduja Global Solutions (HGS) fell 6.89% to trade at ₹1,275.10 on Monday morning after the company reported a 29.77% decline in profit for Q2 FY25 despite maintaining stable revenue growth.
Key Financial Highlights:
Q2 FY25 Results:
- Total Income: ₹1,207.6 crore
- Revenue from Operations: ₹1,087.2 crore
- EBITDA: ₹154.8 crore (EBITDA margin of 12.8%)
- Net Cash and Treasury Surplus: ₹5,090.2 crore (as of September 30, 2024)
H1 FY25 Results:
- Total Income: ₹2,426.2 crore
- EBITDA: ₹298.3 crore (EBITDA margin of 12.3%)
- PAT: ₹111 crore
- Revenue from Operations: ₹2,179.1 crore
Operational Highlights:
- Added 12 new clients for digital-enabled CX solutions and seven clients for HRO/Payroll Processing.
- Expanded engagement with over 50 existing clients.
- Launched an AI Hub in Manila, Philippines to boost digital experience.
- Set up a new CX hub in Cape Town, South Africa, supporting 65+ employees.
Management Commentary:
Partha DeSarkar, Whole-Time Director and Group CEO, acknowledged the challenges, citing macroeconomic pressures and issues in the UK market as primary reasons for flat revenue growth. He expressed optimism about recovery, emphasizing investments in sales, technology optimization, and offshore engagements.
Market Reaction:
Despite the company’s efforts to expand its digital presence and client base, the flat revenue growth and macroeconomic challenges raised investor concerns, leading to a sharp selloff.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Always consult a financial advisor before making investment decisions.
