Hinduja Global Solutions Limited · NSE:HGS
Hinduja Global Solutions — Q1 FY2023 Earnings Presentation
22 slides from Hinduja Global Solutions's earnings presentation, Aug 16, 2022
Slide 1: Exchange filing cover letter: Q1 FY2023 Earnings Call Presentation
August 16, 2022 BSE Limited National Stock Exchange of India Ltd. Corporate Relation Dept. “Exchange Plaza” P.J. Towers, Dalal Street Bandra Kurla Complex, Bandra (E) Mumbai - 400001. Mumbai - 400051. Scrip Code: 532859 Symbol: HGS Dear Sirs/ Madam, Sub: Q1 FY2023 Earnings Call Presentation This has
Slide 2: HGS Earnings Call Presentation Q1 FY2023
HGS Earnings Call Presentation Q1 FY2023 August 16, 2022
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 uncertainties
Slide 4: Highlights from HGS' Q1 FY2023 performance
Highlights from HGS’ Q1 FY2023 performance • Strong revenue growth of 14.1% YoY • Net profit of Rs. 73.3 Cr, a 9x growth YoY on like-to-like basis • Robust demand for our customer experience (CX) services and digital solutions across all our geographies • Continue to reward shareholders - Interim Di
Slide 5: Financials
Financials In INR (Cr) In INR (Cr) ₹ 912 ₹ 38 ₹ 800 ₹ 46 Q1 FY 22 Q1 FY 23 Q1 FY 22 Q1 FY 23 REVENUES EBITDA In INR (Cr) In INR (Cr) ₹ 73 ₹ 118 ₹8 ₹ 13 Q1 FY 22 Q1 FY 23 Q1 FY 22 Q1 FY 23 PBT PAT *Note: All nos. are for HGS’ retained business comprising its digital-enabled customer experience (CX) s
Slide 6: Strong growth across businesses
Strong growth across businesses Overall good performance in Consumer Engagement Solutions business ▪ Onshore: the US, Canada and UK were above expectations ▪ Offshore: India, Philippines and Jamaica showed strong growth from existing accounts - Expanded seat utilization and set up a new center in My
Slide 7: Diversify acquisition is doing well
Diversify acquisition is doing well Diversify Offshore, Australia (acquired in end-February 2022) is performing well – ▪ Strong revenue growth of over 23% YoY ▪ Delivered EBITDA margins of 22.4% in June quarter ▪ Signed 8 new logos since acquisition in end-February ▪ Healthy sales pipeline
Slide 8: Real Estate Footprint Consolidation
Real Estate Footprint Consolidation ▪ With a significant portion of our employees working from home, we continue to consolidate our real estate globally ▪ Closed three centers in Q1 FY2023 – two in the US and one in Canada; two more centers to be closed in August 2022 in Canada. Annualised savings o
Slide 9: Looking ahead
Looking ahead ▪ With a tightening macro-economic environment, HGS is cautiously optimistic ▪ Looking to drive aggressive growth for the rest of the year – higher revenue and improved margins ‐ Expansion in the UKHSA account and offshore accounts ‐ Real estate consolidation ‐ G&A optimization ‐ Parin
Slide 10: Update for our Shareholders
Update for our Shareholders The Hon’ble National Proposed Buyback Company Law Tribunal, vide of around Rs 975 cr its Order dated July 29, 2022, has based on FY2022 audited directed to convene the meeting financials will be announced at a of Equity Shareholders on later date upon completion of Septem
Slide 11: Financial Update
Y has Financial Update
Slide 12: Q1 FY23 Vs Q4 FY22 Vs Q1 FY22
Q1 FY23 Vs Q4 FY22 Vs Q1 FY22 Quarter Performance - Consolidated YoY Growth Figures in INR Cr unless otherwise indicated 9.0 % from Organic growth 5.1 % from acquisition Actual Actual QoQ Growth Actual YoY Growth QE June 22 QE Mar 22 % QE June 21 % Total Revenue (In $ Mn) $117.3 $114.9 2.1% $108.6 8
Slide 13: Dividend Up from Rs 7/share to Rs 5/share (post 1:1 Bonus)
Dividend Up from Rs 7/share to Rs 5/share (post 1:1 Bonus) Standalone Consolidated Q1FY 22 Q1FY 23 Q1FY 22 Q1FY 23 Rs Cr Rs Cr Rs Cr Rs Cr PAT 78.04 89.65 117.02 73.27 Dividends 14.62 20.90 14.62 20.90 Payout 18.7% 23.3% 12.5% 28.5% No of Shares Cr 2.09 4.18 2.09 4.18 Dividend/share in Rs 7.00 5.00
Slide 14: Summary Financial Profile
Summary Financial Profile HGSL Particulars in INR Cr (Except in USD Mn (Except per share data) per share data) Net Worth 7,982 101.0 ▪ P/E calculated as per CMP of Rs 1345.75 Book value per share 191 2.4 (Aug 12, 2022) Price per share 1,346 16.9 ▪ USD/INR exchange rate 75.44 for the TTM Dividend per
Slide 15: Debt & Treasury Snapshot
Debt & Treasury Snapshot As on 31st March 2022 As on 30th June 2022 (in INR Cr) (In INR Cr) Debt 3 2 ICDs to Related Parties 1,125 1,215 Cash 3,521 3,372 Debt Investments 2,467 2,568
Slide 16: Other Key Parameters
Other Key Parameters CAPEX (in INR Cr) DSO (In Days) 158 237 26 72 65 71 FY 21 FY22 Q1 FY23 FY 21 FY22 Q1 FY23 *Capex for FY 21 and FY22 include capex for the erstwhile healthcare business.
Slide 17: Revenue Composition
Revenue Composition Revenue Split - by Delivery Location Revenue Split - by Origination Jamaica India India 5% Canada 9% 12% 16% Others Canada 7% 17% Philippines 9% UK 30% USA UK USA 37% 26% 30% Q1 FY2023 * Others Include revenues originated from Philippines, Jamaica & Diversify *Note: All nos. are
Slide 18: Revenue by Vertical
Revenue by Vertical Revenue Split - by Verticals Technology & Public Sector & Telecom Others 15% 34% Consumer & Retail 19% Media & Entertainment 13% Banking & Financials 17% Q1 FY2023 *Note: All nos. are for HGS’ retained business comprising its digital-enabled customer experience (CX) solutions and
Slide 19: Revenue Profile
Revenue Profile Q1 FY2023 Client Concentration Channel Mix Top Customer Top 5 Customers Top 10 Customers Digital CX + HRO Business 56.5% Digital, 14% 39.7% Non Voice, 12% 12.2% Voice, 74% Digital CX + HRO Business *Note: All nos. are for HGS’ retained business comprising its digital-enabled customer
Slide 20: HGS Share: Performance vs CNXIT and NIFTY 50
HGS Share : Performance vs CNXIT and NIFTY 50 Aug
Slide 21: Transaction with NXTDIGITAL (Subject to necessary approvals)
Transaction with NXTDIGITAL (Subject to necessary approvals) Acquisition of NXTDIGITAL media & digital business On Completion of the transaction with approved by Boards of HGS and NXTDIGITAL NXTDIGITAL : in Feb 2022 Share capital of HGS will increase from 4.179 Cr shares to 5.248 Cr shares Post rece
Slide 22: Thank You
Thank You investor.relations@teamhgs.com
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