Hinduja Global Solutions Limited · NSE:HGS
Hinduja Global Solutions — Q2 FY2024 Earnings Presentation
30 slides from Hinduja Global Solutions's earnings presentation, Nov 10, 2023
Slide 1: Exchange filing cover letter for Q2 FY2024 earnings call presentation
November 10, 2023 BSE Limited National Stock Exchange of India Ltd. Corporate Relation Dept. P. J. Towers, Dalal Street Bandra Kurla Complex, Bandra (East) Mumbai 400 001. Mumbai - 400 051. Scrip Code : 532859 Symbol : HGS Dear Sir/Madam, Sub: Q2 FY2024 Earnings Call presentation This has reference
Slide 2: HGS Earnings Call Presentation Q2 and H1 FY2024
HGS Earnings Call Presentation Q2 and H1 FY2024 November 10, 2023 1
Slide 3: Safe Harbour
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. HGS does not undertake to update an
Slide 4: Overall Performance Update
Overall Performance Update Partha DeSarkar 3
Slide 5: H1 FY2024 Summary – BPM business
H1 FY2024 Summary – BPM business ▪ Global economic uncertainty has led to client spending cuts and delayed decision-making industry-wide. ▪ New logo acquisition for big deals has been a challenge; Existing clients continue to expand. ▪ We expect a muted revenue growth this year, led by these factors
Slide 6: Overall steady performance in CX business
Overall steady performance in CX business ▪ Strong Performance by the Canadian Business, led by higher volumes ▪ Focus on growing offshore/ nearshore business – APAC is doing very well… Diversify shows improvement; Colombia and Jamaica sees steady progress ▪ Onshore US and UK business remain muted i
Slide 7: Modest performance in Technology Solutions business
Modest performance in Technology Solutions business ▪ TekLink doing very well – o EBITDA of 20%+ in Q2 o Won four new logos in Q2 o Cross-sell opportunities – signed several engagements with existing clients. ▪ Continue to focus on longer term deals in areas like managed services and referral-based
Slide 8: HGS Cons. – Snapshot of Q2 FY2024 financial performance
HGS Cons. – Snapshot of Q2 FY2024 financial performance INR Cr Operating EBITDA improved by 30% YoY; Other Income Breakup Q2 FY 23 Q2 FY 24 Margins improved to 8.3% from 6.4% YoY Interest Income 69.1 56.2 Profit on sale of assets 28.7 2.4 Forex and Others 88 49 Total 185.3 107.5 PAT- Q2 FY 23 in INR
Slide 9: HGS Cons. – Snapshot of H1 FY2024 financial performance
HGS Cons. – Snapshot of H1 FY2024 financial performance INR Cr Operating Revenue 2,316.2 2,313.3 2,188.9 H1 FY 23 H2 FY 24 H1 FY 24 Operating EBITDA improved by 38.9% YoY; Other Income Breakup H1 FY 23 H1 FY 24 Operating EBITDA margins improved from Interest Income 124.3 128.1 5.4% to 7.5%. Profit o
Slide 10: HGS - Current State
HGS - Current State Digital Traditional CX • App Development / Maintenance • Contact Center with heavy workforce • Cloud Deployment & Migrations deployment • Systems Implementations (Content • Manpower driven Back Office Process Management, Portals, CRM, Etc.) management • Data Engineering & Analyti
Slide 11: HGS - Future State
HGS - Future State Digital Traditional Digital Operations CX • App Development / Maintenance • Contact Center with heavy workforce • Cloud Deployment & Migrations • AI Driven Process Management deployment • Systems Implementations (Content • AI Supported Unattended Customer Service • Manpower driven
Slide 12: Generative AI @ HGS – current state
Generative AI @ HGS – current state The world's fascination with ChatGPT proves generative AI will continue to dominate CX strategy. HGS is deploying AI for monitoring, reporting, and Internally, HGS is investing significantly in adopting AI improving CX across front and back-office processes, while
Slide 13: Digital Media Business – An Update
Digital Media Business – An Update Vynsley Fernandes 12
Slide 14: Simplifying Complexity, Powering Success
I N T R O D U C I N G Simplifying Complexity, Powering Success With our cutting-edge connectivity solutions, we empower businesses to achieve new heights of efficiency and performance. 13
Slide 15: CelerityX launched!
CelerityX launched! VALUE PROPOSITION SkyX - Broadband over Satellite solutions: Get superfast OneX - Network-In-a-Box Solution: Seamlessly connect your retai nectivity in remote areas with SkyX, India's premier Broadband-over- locations without compromising security with Onex Satellite solution. Sk
Slide 16: Press coverage
Press coverage MEDIA BTelecom nterp gment ee ONEOTT iNTERTAINMENT launches eee r enterprise networking solutions brand DALAL STREET : ‘CelerityX’ with Celerityx ONEOTT forays into enterprise solutions segment in India at AVETIONS = MURTTIG = MED = CHRUEMES = ODS = UPTEUNNS LVDS ~ TERRE ONEOTT iNTERT
Slide 17: NLD Backbone for Broadband
NLD Backbone for Broadband Plan Progress to date ▪ 8,000 kms across 10 states ▪ >6,000 kms of NLD networks commissioned ▪ Covers 150+ cities and towns enroute using and “operationalized” connecting 125 cities OPGW & Underground connectivity and multiple towns and villages enroute. ▪ Will deliver 1 T
Slide 18: KPIs – Q2 FY2024
KPIs – Q2 FY2024 Both key business verticals viz. Digital Television (DTV) and Broadband (BB) have shown growth in Q2FY24 on the back on new initiatives including expansion in new markets and customized packaging. Digital Television (DTV) Subscriber Base DTV ARPUs (Average Revenue Per User) DTV 90-d
Slide 19: Financial Update
Financial Update Srinivas Palakodeti 18
Slide 20: Since the sale of Healthcare Business in January 2022…
Since the sale of Healthcare Business in January 2022… US$ 57 million US$ 28 million For shares of HGSL (paid till date) Acquired Diversify in Australia Acquired Digital Media Acquired Teklink Business (NXTDIGITAL) Rs. 4,874.7 crore Rs. 548.2 crore Rs. 1,246 crore (Net Cash & Treasury Surplus as on
Slide 21: Q2 FY2024 Performance
Q2 FY2024 Performance INR Cr Actual Actual QoQ Growth Actual YoY Growth Q2 FY 24 Q1 FY 24 % Q2 FY 23 % Revenue from Operations 1,179.9 1,133.5 4.1% 1,167.5 1.1% Other Income 107.5 114.1 -5.8% 185.3 -42.0% Total Income 1,287.4 1,247.6 3.2% 1,352.8 -4.8% Total EBITDA 205.1 191.0 7.4% 260.3 -21.2% Tota
Slide 22: H1 FY2024 Performance
H1 FY2024 Performance INR Cr H1 FY 24 H1 FY 23 Var % Total Total Total Revenue from Operations 2,313.3 2,316.2 -0.1% Other Income 221.7 357.9 -38.1% Total Income 2,535.0 2,674.2 -5.2% Total EBITDA 396.0 483.5 -18.1% Total EBITDA % 15.6% 18.1% #DIV/0! Depreciation 258.7 223.8 15.6% Interest Expense 8
Slide 23: Balance Sheet Sep 23 vs March 23: Overall
Balance Sheet Sep 23 vs March 23: Overall Summary Balance Sheet as at In INR Cr In INR Cr Reduction in Shareholder’s Particulars Sep-23 Mar-23 funds is mainly due to Shareholders' Funds 7,487.8 8,702.3 reduction of Other Equity Share Capital 46.5 52.5 as a result of Buyback of Other Equity & Non con
Slide 24: Cash Flow Statement Sep 23 vs Sep 22: Overall
Cash Flow Statement Sep 23 vs Sep 22: Overall In INR Cr In INR Cr Summary Cash flow as at Sep-23 Sep-22 EBITDA 396.0 493.1 Impact of Working Capital Changes and Other Adjustments (364.3) (521.4) Cash flow from Operations 31.7 (28.3) Capex (Investments)/Proceeds (70.7) 71.6 Treasury (Investments)/Pro
Slide 25: Summary Financial Profile
Summary Financial Profile Particulars HGSL Net Cash & Treasury Surplus INR Cr in INR Cr in USD Mn As at 30 Sep 2023 4,875 (Except per (Except per As at 30 June 2023 4,962 share data) share data) Movement -87 Shareholder's Fund 7,487.8 908.5 Book value per share 1,609.6 19.5 Price per share 949.0 11.
Slide 26: Q2 Total Income Composition of Rs. 1,287.4 Cr
Q2 Total Income Composition of Rs. 1,287.4 Cr Total Income Split by Source Other Income 8% BPM Business 56% Digital Services 36% BPM Business Digital Services Other Income Q2 FY2024 25
Slide 27: Q2 Operating Revenue Composition of Rs. 1,179.9 Cr
Q2 Operating Revenue Composition of Rs. 1,179.9 Cr Revenue Split - by Delivery Location Revenue Split - by Origination Colombia, Others Philippines, Jamaica, 5% 7% 9% Canada 15% India 31% India, 38% UK, 13% UK 16% Canada, 16% USA 32% USA, 19% Others : Philippines, Jamaica & Australia Q2 FY2024 26
Slide 28: Operating Revenue Split by Vertical
Operating Revenue (Rs. 1,179.9 Cr) Split by Vertical Revenue Split by Vertical Telecom & Technology BFS 14% 14% Public Sector 8% Consumer & Retail Others 21% 11% Media 32% Q2 FY2024 27
Slide 29: Revenue Profile
Revenue Profile Client Concentration DSO Top Customer Top 5 Customers Top 10 Customers DSO (In Days) 38.5% 27.1% 67 68 9.9% Q2 FY24 Q1 FY24 Revenues of Rs 1,179.9 Cr DSO – Overall includes BPM and Digital Media businesses Q2 FY2024 28
Slide 30: Thank You
Thank You investor.relations@teamhgs.com 29
Hinduja Global Solutions — Q2 FY2024 Earnings Presentation on 6ix