Hinduja Global Solutions Q2FY24 consolidated profit drops 92% to Rs 223 cr, grows 11% QoQ

Consolidated revenue from operations show that Rs 1179.86 crore during the second quarter of the current financial year, growing nearly 1 percent as against Rs 1167.55 crore a year ago.

The firm's profit after tax rose by nearly 11% compared to the first quarter of financial year 2023-24.

Operating EBITDA for Q2 FY2024 was Rs 97.5 crore, a growth of 30.0% YoY and 26.9% QoQ.

Speaking on the performance, Partha DeSarkar, Whole-time Director and Group CEO of HGS said: “HGS continued to see momentum in Q2 FY2024, reflecting our ability to adapt in an increasingly uncertain business environment. Our focus on technology and offshore, along with real estate rationalization and cost containment measures, helped us post improved margins and modest revenue growth in Q2."

Operating EBITDA and PBT of BPM business grew significantly at 58.6% and 21.2%, respectively, on sequential basis.

"Our Canadian and offshore/ nearshore businesses performed very well, led by increased client demand for our services. We are now looking to expand into newer geographies such as EMEA to support this requirement," he said.

"The Technology Solutions business, including the recently acquired TekLink, remained strong, boosted by wins across new logos and existing clients in Q2. We have a very robust pipeline, largely led by cross-selling efforts and new capabilities such as generative AI. TekLink posted great numbers in the quarter with EBITDA margins of 20%+. Our new services - HGS Agent X and HGS Interactive’s proprietary collaborative agency partner solution - are also seeing a lot of interest in the market," Sarkar added.

"Looking ahead, we expect some topline challenges in H2 due to delayed decision-making across clients from different verticals and the ending of short-term projects. However, we believe our investments in technology and   sales will help us navigate these challenges and deliver better results in the future,” he further stated.

Commenting on the digital media division’s performance, Vynsley Fernandes, Whole-time Director of HGS and Head of the Digital Media businesses said, “We’ve ended Q2 on a strong note, posting growth in not just the top-line but also our subscriber base – in both broadband and digital television.

"Both verticals continue to expand their footprint across India, riding on the back of our national long distance connectivity initiative and our digital solutions centric NXTHUBs, which have now crossed 125. We’ve also launched our enterprise business CelerityX, which has made a strong debut and is changing the way corporations access connectivity and related solutions across India.”