Hinduja Global Solutions Limited · NSE:HGS
Hinduja Global Solutions — Q4 FY2021 Earnings Presentation
28 slides from Hinduja Global Solutions's earnings presentation, Jun 21, 2021
Slide 1: HGS Earnings Call Presentation Q4 & Full-Year FY2021
HGS Earnings Call Presentation Q4 & Full-Year FY2021 June 21, 2021
Slide 2: 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 3: About HGS
About HGS $753.9M 56 7 39,889 254 in revenue delivery centers countries employees BPM clients Our Services Areas: Healthcare | CX | Digital 4.5 Bn 325K 150+ Mn 34 annual voice mins annual chat sessions Healthcare experiences languages managed supported | 3
Slide 4: Our Key Strengths
Our Key Strengths Company with Company with Strong Net Zero Promoter Net Cash Free Cash Flows Pledge Stability – 60% of our Proven method for right-shore revenue comes from long outsourcing – onshore, nearshore tenured clients (10 yrs+) and offshore locations Client centric – Our CSAT Employee centr
Slide 5: The Global BPM Market is Growing
The Global BPM Market is Growing Traditional BPM market dominates the current BPM market; However faster growth in BPaaS Global BPM Spending ($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 6: FY2021: A Record Year where HGS turned Challenges into Opportunities
FY2021: A Record Year where HGS turned Challenges into Opportunities Operating in a Bubble ▪ Financial stability – reported strong topline and profitability results ▪ Portfolio mix enabled a big advantage for us ▪ Strong momentum in client wins (new and existing); Excellent CSAT scores ▪ Big wins in
Slide 7: Q4 FY21 vs Q4 FY20 (Like-to-Like Basis)
Q4 FY21 vs Q4 FY20 (On a Like-to-Like Basis) – HGS’ momentum continues with double-digit growth In INR (Mn) In INR (Mn) ₹ ₹ 2,342 ₹ 15,636 ₹ 1,779 12,857 Q4 FY 20 Q4 FY 21 Q4 FY 20 Q4 FY 21 REVENUES* EBITDA* In USD (Mn) In USD (Mn) $213 $32 $176 $24 Q4 FY 20 Q4 FY 21 Q4 FY 20 Q4 FY 21 REVENUES* EBIT
Slide 8: Q4 FY21 vs Q4 FY20 (As Reported)
Q4 FY21 vs Q4 FY20 (As Reported), Good performance with PAT growing by 190.6% In INR (Mn) In INR (Mn) In INR (Mn) In INR (Mn) ₹ ₹ 1,676 ₹ 1,303 15,636 ₹ 2,342 ₹ ₹ 1,881 ₹ 974 13,186 ₹ 448 Q4 FY 20 Q4 FY 21 Q4 FY 20 Q4 FY 21 Q4 FY 20 Q4 FY 21 Q4 FY 20 Q4 FY 21 REVENUES EBITDA PBT PAT In USD (Mn) In U
Slide 9: FY21 vs FY20 (Like-to-Like Basis)
FY 21 vs FY 20 (On a Like-to-Like Basis), Another strong year for HGS In INR (Mn) In INR (Mn) ₹ 55,889 ₹ 7,734 ₹ 48,788 ₹ 6,668 FY 20 FY 21 FY 20 FY 21 REVENUES* EBITDA* In USD (Mn) In USD (Mn) $754 $104 $94 $687 FY 20 FY 21 FY 20 FY 21 REVENUES* EBITDA* * excludes:- Pass Through : Pass through reve
Slide 10: FY21 vs FY20 (As Reported)
FY 21 vs FY 20 (As Reported), Positive on all parameters In INR (Mn) In INR (Mn) In INR (Mn) In INR (Mn) ₹ ₹ 3,361 55,889 ₹ 7,734 ₹ 4,440 ₹ ₹ 7,165 ₹ 2,056 52,354 ₹ 3,492 FY 20 FY 21 FY 20 FY 21 FY 20 FY 21 FY 20 FY 21 REVENUES EBITDA PBT PAT In USD (Mn) In USD (Mn) In USD (Mn) In USD (Mn) $754 $104
Slide 11: HGS' non-voice revenues are growing
HGS’ non-voice revenues are growing ▪ HGS’ non-voice revenues have grown significantly in FY 2021 - Channel Mix the last 5 years Transaction Processing, ▪ Since acquisition of Element Solutions in March 2018 23.0% (now known as HGS Digital LLC), revenue contribution Voice CRM, from Digital CRM has m
Slide 12: In Focus - HGS UK is now our third largest market
In Focus - HGS UK is now our third largest market FY 2020 FY2021 Others Others 3% 2% Canada Canada USA 12% 11% 71% USA India 73% India 4% 9% UK UK 9% 6% ▪ In the last 12 months, HGS UK has seen robust growth of 60.7%, led by the Public Sector vertical that has grown significantly in volume, diversit
Slide 13: Work@Home – a Gamechanger for HGS
Work@Home – a Gamechanger for HGS ▪ Transitioned to Work@Home model in just a few days in 2020 ▪ Significant % of our people are working from home today; some still working in on-premise, following requisite guidelines ▪ Replication of all processes & policies across hiring, training, Ops delivery,
Slide 14: HGS' Response to COVID-19
HGS’ Response to COVID-19 First Wave in 2020: ▪ Priority to employee health and safety ▪ Migrating to work from home, assets movement, infrastructure ▪ Enable work from home – training, remote support, new tools ▪ Enhanced Medical Insurance, Employee Emergency Aid Policies ▪ Increased communication
Slide 15: HGS 'New Normal' Strategy
Verticalization to drive better value HGS ‘New Normal’ Strategy Expand Digital offerings and services Adopt hybrid working model as Future Workplace Strategy Continue to leverage Cloud technology Execute… Deliver… Impact | 15
Slide 16: HGS' Response to COVID-19 Key Takeaway
HGS’ Response to COVID-19 Key Takeaway All-round great performance for HGS in FY2021! ▪ Financial performance – highest-ever PAT, revenue crosses $750mn ▪ Client CSAT – highest ever, in the top quartile of peer group ▪ Employee satisfaction – all-time high score ▪ Investor confidence – rising HGS sh
Slide 17: Financial Update
CHGS Financial Update
Slide 18: Q4 FY21: Double-digit growth in topline and EBITDA, PAT up 191% YoY
Q4 FY21: Double-digit growth in topline and EBIDTA, PAT up by 191% YoY Quarter Performance - Consolidated Figures in Mn unless otherwise indicated Actual Actual QoQ Growth Actual YoY Growth QE March 21 QE Dec 20 % QE March 20 % Total Revenue (In $ Mn) $ 213.5 $ 197.2 8.2% $ 180.6 18.2% Revenue from
Slide 19: FY21: Strong revenue performance, PAT up by 63%
FY21: Strong revenue performance, PAT zooms up by 63% Yearly Performance - Consolidated Figures in Mn unless otherwise indicated Actual Actual YoY Growth Post COVID Budget Var Pre COV FY 21 FY 20 % FY 21 % FY Total Revenue (In $ Mn) $ 753.9 $ 736.9 2.3% $ ▪ 3 Interim Dividends of10.1% 684.6 Rs. 6 pe
Slide 20: 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, 6.6% Media, 2.3% Telecom & Others, 2% Others, 7.8% Technology, Canada, 12% India, 24.2% Chemical
Slide 21: 5-Year trends: PAT, EBITDA and Market Cap at highest-ever levels
5-Year trends: HGS’ PAT, EBIDTA and Market Cap reach highest-ever levels in FY21 3,361 7,734 7,165 1,991 2,056 4,424 4,411 1,792 1,764 4,061 FY 17 FY 18 FY 19 FY 20 FY 21 FY 17 FY 18 FY 19 FY 20 FY 21 PAT (Rs.Mn) EBIDTA (Rs.Mn) 36,038 16,868 12,089 12,886 10,533 FY 17 FY 18 FY 19 FY 20 FY 21 Market
Slide 22: Debt reduction of Rs 2,106 mn in FY21, Net Cash Company
Debt reduction of Rs 2,106 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 5,854 5,687 5,911 3,232 6,042 5,308 3,936 5,300 FY 18 FY 19 FY 20 FY 21 | 22
Slide 23: Strong Cash Flow Generation, Increasing ROCE
Strong Cash Flow Generation, Increasing ROCE Fig. in INR Mn EBITDA CAPEX (in INR Mn) 60% 47% 49% Free Cash Flow to 2% EBIDTA 1,327 1,940 1,176 1,581 4,061 4,411 7,165 7,734 FY 18 FY 19 FY 20 FY 21 FY 18 FY 19 FY 20 FY 21 Average Capital Employed (INR Mn) Business ROCE % DSO (In Days) Business 25% 35
Slide 24: Debt of Rs 3,936 mn: 64% are Term Loans
Debt of Rs 3,936 mn: 64% 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, 36% Loans, 36% LIBOR Loan (Fixed interest Linked rate), 28% loans, 58% Total
Slide 25: 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 120.0 90.0 120 49.5 84.2 100.0 81.1 85.0 100 49.0 49 76.9 80.0 80.0 80 48.6 75.0 48.5 60.0 70.0 60 48 65.0 40.0 40 60.0 47.5 20.0 20 55.0 108.0 49.5 25.5
Slide 26: Summary Financial Profile – As at 31st March 2021
Summary Financial Profile – As at 31st March 2021 HGSL Particulars Rs. USD Net Worth (in millions) 20,849 285.0 Book value per share 999 13.6 ▪ P/E calculated as per CMP of Rs 2,420 ▪ (17th June 2021) Price per share 2,420.0 32.6 ▪ USD/INR exchange rate of 73.17 Dividend per share 6.0 0.08 ▪ Total D
Slide 27: Capital Market Data
Capital Market Data Price Data (As on 18th June, 2021) Face Value 10 Market Price 2,348 Equity Shares Outstanding (Mn) 20.87 | 27
Slide 28: Thank You
Thank You www.TeamHGS.com
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