Hinduja Global Solutions Limited · NSE:HGS
Hinduja Global Solutions — Q3 FY2023 Earnings Presentation
34 slides from Hinduja Global Solutions's earnings presentation, Feb 14, 2023
Slide 1: HGS Earnings Call Presentation Q3 & 9M FY2023
HGS Earnings Call Presentation Q3 & 9M FY2023 February 14, 2023
Slide 2: 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 3: Q3 and 9M FY2023 – Overall Performance Update
Q3 and 9M FY2023 – Overall Performance Update Partha DeSarkar
Slide 4: Q3 FY2023 – Key highlights
Q3 FY2023 – Key highlights Consolidated (In INR terms) : HGS Board announces Third Interim ▪ Total income growth of 8.3% YoY Dividend of Rs. 2.50/ equity share ▪ EBIDTA growth of 57.1% YoY ▪ Net profit @ Rs. 51.83 cr (was a loss of Rs. 37.88 cr a year ago) BPM business: Digital Media business: ▪ Sig
Slide 5: Buyback plan
Buyback plan ▪ Final Buyback price fixed @ Rs. 1,700 per equity share ▪ Aggregate consideration of Rs. 1,020 crores, excl. buyback tax ▪ Record date is March 6, 2023 ▪ Total number of shares to be bought back in the Buyback shall be up to 60,00,000 equity shares 5
Slide 6: Financials – Q3 FY2023 Overall
Financials – Q3 FY2023 Overall In INR (Cr) In INR (Cr) ₹ 1,165 ₹ 1,075 ₹ 128 ₹ 81 Q3 FY 22 Q3 FY 23 Q3 FY 22 Q3 FY 23 REVENUES EBITDA In INR (Cr) In INR (Cr) ₹5 ₹ 52 ₹ -68 ₹ -38 Q3 FY 22 Q3 FY 23 Q3 FY 22 Q3 FY 23 PBT PAT * EBITDA includes Other Income
Slide 7: Financials – YTD Dec FY2023 Overall
Financials – YTD Dec FY2023 Overall In INR (Cr) In INR (Cr) ₹ 3,855 ₹ 627 ₹ 3,262 ₹ 322 YTD DEC FY22 YTD DEC FY23 YTD DEC FY22 YTD DEC FY23 REVENUES EBITDA In INR (Cr) In INR (Cr) ₹ 205 ₹ 279 ₹ -78 ₹ -125 YTD DEC FY22 YTD DEC FY23 YTD DEC FY22 YTD DEC FY23 PBT PAT * EBITDA includes Other Income
Slide 8: BPM Business: A year after the sale of Healthcare Business
BPM Business : A year after the sale of Healthcare Business EBITDA margins have improved ₹ 940.0 ₹ 922.5 6.0% In INR Cr ₹ 920.0 ₹ 912.0 BPM Business Y0Y performance ₹ 886.9 5.0% ₹ 900.0 substantially better with Revenue 4.6% ₹ 880.0 4.8% growth of 10.5% and EBITDA ₹ 865.5 4.0% ₹ 860.0 4.2% growth of
Slide 9: Digital Media Business
Digital Media Business REVENUE & EBITDA TREND ₹ 290.0 22.5% In INR Cr ₹ 279.1 22.2% ₹ 280.0 22.0% While revenues have ₹ 275.2 ₹ 269.9 21.5% dropped by 6.8%, EBITDA ₹ 270.0 ₹ 264.2 21.0% margins have expanded by ₹ 260.0 20.6% 20.5% 220 bps 20.5% 20.1% ₹ 246.2 20.0% ₹ 250.0 19.5% 19.5% ₹ 240.0 19.0% ₹
Slide 10: Overall good performance in CES business
Overall good performance in CES business ▪ Onshore: ‐ North America showed steady growth. Significant expansion in existing client accounts and healthy pipeline ‐ UK has some headwinds; focus on driving growth in private sector verticals. Patrick Elliott is new CEO for UK… brings extensive experienc
Slide 11: Digital Solutions business continues its strong momentum
Digital Solutions business continues its strong momentum ▪ Grew revenues by 36% YoY in Q3 and 51.2% YoY in 9M ▪ Focus on deepening relationships with core digital clients; Drive digital-led solutions for traditional CES clients ▪ Investing significantly in strengthening integrated sales team ▪ Conti
Slide 12: Looking to solve digital problems for clients
Looking to solve digital problems for clients • We are shifting gears – from being a services-led business into a ‘solution accelerators and platforms-led business’ • Some key solutions we have taken to market in the last 2 years – Agent X, Cloud Accelerator and DaVinci • Addition of TekLink will fa
Slide 13: Our clients are delighted!
Our clients are delighted! • Annual CSAT Survey results: HGS scored a NPS of 65… our highest ever! • HGS’ NPS is in 90th percentile based on industry benchmarks* HGS continues to be a true HGS continues to show they Great collaborators, digital business partner and have the desire to be a solution e
Slide 14: Looking ahead
Looking ahead ▪ Continued effort to drive improved margins and profitability at enterprise level ▪ Demand for BPM services remains strong and we need to ride this wave. Focus on: ‐ Investing in an integrated sales and GTM strategy ‐ Lead with Digital in client engagements ‐ Continue to explore acqui
Slide 15: Digital Media Division – Q3 FY2023 Update
Digital Media Division – Q3 FY2023 Update Vynsley Fernandes
Slide 16: ONEDIGITAL: Combo Performance
ONEDIGITAL : Combo Performance Combo Performance Q3 FY2023 NXT Sangram Progress ▪ ONEDigital - India’s first integrated and convergent “combo” product; offering customers broadband up ▪ NXT has continued accelerating it’s “digital upskilling” to 1,000Mbps speeds, 650 digital television channels, pro
Slide 17: Broadband over satellite: Disruptive model
Broadband over satellite : Disruptive model ▪ NXTDIGITAL launched its broadband-over-satellite (BoS) VSAT License LOI Issued in Jan 2023 solution “NXTSkyFi” through a retail and innovative enterprise model ▪ Can now directly procure bandwidth from Satellite ▪ Education Enablement Solution launched i
Slide 18: NXTCONCLAVE 2022: Connect. Converge. Collaborate
NXTCONCLAVE 2022: Connect. Converge. Collaborate NXTDIGITAL set up its first conclave – bringing together independent and pan-India Digital Platform Operators (DPOs) for a day-long summit to share digital transformation trends in the industry as well as define ways to collaborate. ▪ The event was de
Slide 19: Digital Media business ends Q3 with strong KPIs
Digital Media business ends Q3 with strong KPIs Subscriber Base (Digital Video) Digital Video ARPUs Broadband Subscriber Base & ARPUs ( in millions) (Exit ARPU in ₹) (in millions & exit ARPU in ₹ ) ₹261 ₹268 ₹266 4.18 4.19 126 4.08 120 120 1.15 1.18 0.74 Q3FY22 Q2FY23 Q3FY23 Q3FY22 Q2FY23 Q3FY23 Q3F
Slide 20: Financial Update
Financial Update Srinivas Palakodeti
Slide 21: Q3 FY2023 Performance: Continuing Operations
Q3 FY2023 Performance : Continuing Operations Figures in INR Cr unless otherwise indicated Actual Actual QoQ Growth Actual YoY Growth QE Dec 22 QE Sept 22 % QE Dec 21 % Revenue from Operations ₹ 1,119.1 ₹ 1,167.5 -4.1% ₹ 1,051.9 6.4% Other Income ₹ 45.5 ₹ 201.4 -77.4% ₹ 23.4 94.4% Total Revenue ₹ 1,
Slide 22: YTD Dec 22 Performance: Continuing Operations
YTD Dec 22 Performance: Continuing Operations Figures in INR Cr unless otherwise indicated Actual Actual Variance YTD Dec FY 23 YTD Dec FY 22 % Revenue from Operations ₹ 3,435.4 ₹ 3,163.3 8.6% Other Income ₹ 419.6 ₹ 98.5 325.8% Total Revenue ₹ 3,855.0 ₹ 3,261.9 18.2% EBITDA ₹ 627.4 ₹ 322.4 94.6% EBI
Slide 23: Summary Financial Profile
Summary Financial Profile HGSL(Incl Digital Media) Particulars in INR Cr in USD Mn (Except per (Except per share data) share data) Shareholder's Fund 8,880.2 1,073.4 Book value per share 1,692.0 20.5 Price per share 1,300.2 15.7 Dividend per share 2.5 0.03 EPS (TTM)* 61.9 0.7 P/E Ratio (TTM) 21.0 21
Slide 24: Debt & Treasury Snapshot
Debt & Treasury Snapshot As on 31st Dec 2022 (In INR Cr) Borrowings 330 Cash and Treasury Surplus Short Term Loans given 2,476 Cash 1,344 Debt Investments 2,896 Total- Cash & Treasury Surplus 6,716
Slide 25: Revenue Composition of Rs. 1,164.6 Cr
Revenue Composition of Rs. 1,164.6 Cr Revenue Split by Source Other Income 4% Digital Services 31% BPM Business 65% BPM Business Digital Services Other Income Q3 FY2023
Slide 26: Operating Revenue Composition of Rs. 1,119.1 Cr
Operating Revenue Composition of Rs. 1,119.1 Cr Revenue Split - by Delivery Location Revenue Split - by Origination Others Jamaica, 4% 6% Canada, 12% Canada 13% India 29% India, 33% UK, 16% UK 20% Philippines, USA USA, 26% 9% 33% Q3 FY2023 • Others Include revenues originated from Philippines, Jamai
Slide 27: Operating Revenue Split by Vertical
Operating Revenue (Rs.1,119.1 Cr) Split by Vertical Revenue Split by Vertical Telecom & Technology BFS 11% 16% Public Sector 11% Consumer Elec, Others Products, Svcs & 9% Retail 21% Media 32% Q3 FY2023
Slide 28: Revenue Profile
Revenue Profile Client Concentration DSO Top Customer Top 5 Customers Top 10 Customers DSO (In Days) 42.8% 27.9% 7.3% 60 62 FY22 YTD FY23 Revenues of Rs. 1119,1 Cr DSO – Overall includes BPM and Digital Media businesses Q3 FY2023
Slide 29: HGS Share: Performance vs CNXIT and NIFTY 50
HGS Share : Performance vs CNXIT and NIFTY 50
Slide 30: Delivering the Digital Future
Delivering the Digital Future Partha DeSarkar and Ru Ediriwira
Slide 31: Future forward
Future forward “Our GOAL is to deliver compelling digital solutions and services to fulfil clients’ needs globally, today and for the future.” Our Approach: ▪ HGS takes pride in providing frictionless customer journeys, using the latest technologies of artificial intelligence, automation, analytics
Slide 32: 360 Degree Strategy HGS
3600 Strategy Automation & Workflow Mgmt. Business Process Management Outsourcing SaaS / PaaS Technology Software Development HGS Engineering “DELIVERING DIGITAL” Artificial Intelligence Data Services Business Intelligence & Analytics Media Networking & Connectivity Telecommunications
Slide 33: Building integrated digital offerings
Building integrated digital offerings By leveraging the inherent expertise of HGS and NXTDIGITAL, and access to the Hinduja Group's global footprint, we will develop new service streams to transform existing and new client businesses. A SNAPSHOT OF OUR FIRST INTEGRATED SOLUTION PORTFOLIO Value Netwo
Slide 34: Thank You
Thank You investor.relations@teamhgs.com
Hinduja Global Solutions — Q3 FY2023 Earnings Presentation on 6ix