Hinduja Global Solutions Limited · NSE:HGS
Hinduja Global Solutions — Q1 FY2022 Earnings Presentation
22 slides from Hinduja Global Solutions's earnings presentation, Aug 30, 2021
Slide 1: Exchange cover letter for investor conference call
August 30, 2021 BSE Limited National Stock Exchange of India Ltd. Corporate Relation Dept. Exchange Plaza” P. J. Towers, Dalal Street Bandra Kurla Complex, Bandra (East) Mumbai 400 001. Mumbai - 400 051. Scrip Code : 532859 Symbol : HGS Dear Sirs, Sub: Investor Conference Call - August 30, 2021 This
Slide 2: HGS Earnings Call Presentation Q1 FY2022
HGS Earnings Call Presentation Q1 FY2022 August 10th, 2021
Slide 3: Disclaimer
Disclaimer Certain statements in this presentation concerning our future growth prospects are forward- looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertaintie
Slide 4: About HGS
About HGS $753.9M 55* 7 42,769* 252* in revenue delivery centers countries employees BPM clients (FY2021) *Nos. as of Q1 FY2022 Our Services Areas: Healthcare | CX | Digital 4.5 Bn 325K 150+ Mn 34 annual voice mins annual chat sessions Healthcare experiences languages managed supported | 3
Slide 5: Our Key Strengths
Our Key Strengths Company with Company with Strong Net Zero Promoter Net Cash Free Cash Flows Pledge Stability – 60% of our Proven method for right-shore revenue comes from long outsourcing – onshore, nearshore tenured clients (10 yrs+) and offshore locations Client centric – Our CSAT Employee centr
Slide 6: The Global BPM Market is Growing
The Global BPM Market is Growing Traditional BPM market dominates the current BPM market; However faster growth in BPaaS Global BPM Spending ($Bn) Global BPM Services Forecast ($Bn) 62.0 46.9 188.5 197.3 206.7 161.2 172.2 180.1 125.2 144.7 2017 2018 2019 2020 2021 2022 Source: Gartner Service line F
Slide 7: Q1 FY2022: Strong Quarter for HGS, Building on the FY2021 momentum
Q1 FY2022: Strong Quarter for HGS, Building on the FY2021 momentum ▪ Financial stability – reported strong topline and profitability results in Q1 FY2022 ▪ Solid traction in client wins (new and existing) ▪ Robust volumes in Healthcare and Public Sector – leading to significant growth and ramp ups ▪
Slide 8: Q1 FY2022 vs Q1 FY2021
Q1 FY2022 vs Q1 FY2021 In INR (Mn) In INR (Mn) In INR (Mn) In INR (Mn) ₹ ₹ 2,321 ₹ 1,642 ₹ 1,170 ₹ 15,505 12,359 ₹ 755 ₹ 492 ₹ 1,458 Q1 FY 21 Q1 FY 22 Q1 FY 21 Q1 FY 22 Q1 FY 21 Q1 FY 22 Q1 FY 21 Q1 FY 22 REVENUES EBITDA PBT PAT In USD (Mn) In USD (Mn) In USD (Mn) In USD (Mn) $22 $16 $211 $32 $164 $
Slide 9: HGS' Response to COVID-19 Key Takeaway
HGS’ Response to COVID-19 Key Takeaway ▪ All-round great performance in Q1 FY2022 ▪ Client demand scenario is looking good ▪ Healthy sales pipeline ▪ Continued Employee satisfaction ▪ Investor confidence – rising HGS share price ▪ Looking to drive aggressive growth for the rest of the year ➢ Expect
Slide 10: HGS 'New Normal' Strategy
Verticalization to drive better value HGS ‘New Normal’ Strategy Expand Digital-led offerings and services Adopt hybrid working model as Future Workplace Strategy Continue to leverage Cloud technology Execute… Deliver… Impact | 9
Slide 11: HGS divests its Healthcare Services business to BPEA
HGS divests its Healthcare Services business to BPEA ▪ HGS has signed definitive agreements to sell its Healthcare Services business to funds affiliated with Baring Private Equity Asia (BPEA), one of the largest private alternative investment firms in Asia. ▪ Deal to help unlock value for all HGS st
Slide 12: Move to create Growth Capital for HGS to grow the Rest of its business
Move to create Growth Capital for HGS to grow the Rest of its business ▪ HGS will continue to focus on aggressively expanding its CES and Digital businesses in line with our goal to transform itself into a ‘digitally-enabled customer experience (CX) company’. ▪ Exciting opportunity for the CES and D
Slide 13: Financial Update
CHGS Financial Update
Slide 14: Q1 FY22: Double-digit growth in topline and EBIDTA, PAT up by 138% YoY
Q1 FY22: Double-digit growth in topline and EBIDTA, PAT up by 138% YoY Quarter Performance - Consolidated Figures in Mn unless otherwise indicated Actual Actual QoQ Growth Actual YoY Growth QE June 21 QE March 21 % QE June 20 % Total Revenue (In $ Mn) $ 210.6 $ 213.5 -1.3% $ 163.9 28.5% Revenue from
Slide 15: Revenue Composition – Healthcare vertical continues to grow
Revenue Composition – Healthcare vertical continues to grow, UK is now third-largest market by origination Revenue Split - by Delivery Location Revenue Split - by Vertical Revenue by Origination Jamaica, 6.5% Media, 2.7% Telecom & Others, 1% Others, 9.6% Technology, Canada, 10% India, 23.8% Chemical
Slide 16: Debt of Rs 3,790 mn: 52% are Term Loans
Debt of Rs 3,790 mn: 52% are Term Loans Consolidated Debt description by Type Consolidated Debt description by Categories Total Fixed Interest Loans, 13% Total Working Total Term Capital Total USD External Commercial Loans, 25% Loans, 48% LIBOR Loan (Fixed interest Linked rate), 27% loans, 60% Total
Slide 17: Debt reduction of Rs Mn in FY21, Net Cash Company
Debt reduction of Rs 145 Mn in FY21, Net Cash Company Figs in INR Mn Gross Bank Debt Cash & Cash Equivalent Net Bank Debt/(Cash) 2,678 734 (1,365) 167 (4,200) 5,854 5,687 5,911 3,232 6,042 5,308 3,936 5,300 3,790 7,990 FY 18 FY 19 FY 20 FY 21 Q1 FY 22 | 16
Slide 18: Strong Cash Flow Generation, Increasing ROCE
Strong Cash Flow Generation, Increasing ROCE Fig. in INR Mn 137% CAPEX (in INR Mn) Free Cash Flow to 60% 49% EBIDTA 10% 1,940 1,176 1,581 448 4,411 7,165 7,734 2,321 FY 19 FY 20 FY 21 Q1 FY 22 FY 19 FY 20 FY 21 Q1 FY 22 Average Capital Employed (INR Mn) Business ROCE % 30% 35,000 DSO (In Days) Busin
Slide 19: Forward Cover: USD-INR & USD-PHP
Forward Cover: USD-INR & USD-PHP Forward Cover: USD-INR Forward Cover: USD-PHP Forward Cover (In USD Mn) FC Rate Forward Cover (In USD Mn) FC Rate 83.9 49.0 80.5 76.9 48.6 6.0 108.0 64.5 28.0 104.0 FY 22 FY 23 FY 24 FY 22 FY 23 | 18
Slide 20: Summary Financial Profile – As at 09th August 2021
Summary Financial Profile – As at 09th August 2021 HGSL Particulars Rs. USD Net Worth (in millions) 22,008 296.1 Book value per share 1,054 14.2 ▪ P/E calculated as per CMP of Rs 3,081.6 (09th August 2021) Price per share 3,081.6 41.5 ▪ USD/INR exchange rate of 74.33 Dividend per share 7.0 0.09 ▪ To
Slide 21: Share Price Movement over Last One Year
Share Price Movement over Last One Year Shareholding Pattern as on 30th June 2021 Price Data (As on 09th August, 2021) 22% Promoters Face Value 10 FII's 11% Market Price 3,081.6 Public Equity Shares Outstanding (Mn) 20.87 67% | 20
Slide 22: Thank You
Thank You www.TeamHGS.com
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