Hinduja Global Solutions Limited · NSE:HGS
Hinduja Global Solutions — H1 FY2022 Earnings Presentation
24 slides from Hinduja Global Solutions's earnings presentation, Nov 16, 2021
Slide 1: Exchange filing cover letter: Q2 & H1FY22 Earnings Call Presentation
November 16, 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: Q2 & H1FY22 Earnings Call Presentation This
Slide 2: HGS Earnings Call Presentation Q2 and H1 FY2022
HGS Earnings Call Presentation Q2 and H1 FY2022 16th November 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 uncertainties
Slide 4: Strong growth for HGS - Q2 FY2022 vs Q2 FY2021
Strong growth for HGS - Q2 FY2022 vs Q2 FY2021 In INR (Mn) In INR (Mn) ₹ ₹ 15,826 ₹ 2,269 13,326 ₹ 1,871 Q2 FY 21 Q2 FY 22 Q2 FY 21 Q2 FY 22 REVENUES EBITDA In INR (Mn) In INR (Mn) ₹ 1,705 ₹ 1,365 ₹ 904 ₹ 813 Q2 FY 21 Q2 FY 22 Q2 FY 21 Q2 FY 22 PBT PAT
Slide 5: HGS Performance Summary - H1 FY2022 vs H1 FY2021
HGS Performance Summary - H1 FY2022 vs H1 FY2021 In INR (Mn) In INR (Mn) ₹ 31,331 ₹ 4,590 ₹ 3,329 ₹ 25,685 H1 FY 21 H1 FY 22 H1 FY 21 H1 FY 22 REVENUES EBITDA In INR (Mn) In INR (Mn) ₹ 3,347 ₹ 2,535 ₹ 1,659 ₹ 1,305 H1 FY 21 H1 FY 22 H1 FY 21 H1 FY 22 PBT PAT
Slide 6: Q2 FY2022: Continuing Our Growth Momentum
Q2 FY2022: Continuing Our Growth Momentum ▪ Robust volumes in Healthcare and Public Sector – leading to significant growth and ramp ups ▪ UK – spectacular performance, Q2 revenue growth of 102% YoY ▪ Digital business is doing well o Signed 14 engagements with new and existing clients for digital ser
Slide 7: Looking ahead – Rest of the Year
Looking ahead – Rest of the Year ▪ All-round great performance in H1 FY2022 ▪ Strong client demand scenario ▪ Healthy sales pipeline ▪ Focus on aggressive growth in CES and Digital businesses – revenue, profitability, margins ▪ Expansion – Setting up two new centers (Jamaica and Northern Ireland (Be
Slide 8: Divestment of the Healthcare Services business: An Update
Divestment of the Healthcare Services business An Update ▪ HGS’ Board of Directors at its meeting held on August 9, 2021 approved and entered into definitive agreements to sell the Healthcare Services business to the subsidiaries of Betaine BV, which is owned by funds affiliated with Baring Private
Slide 9: Financial Update
CHGS Financial Update
Slide 10: Q2 FY2022: Compared to Q2 FY2021 and Q1 FY2022
Q2 FY2022: Compared to Q2 FY2021 and Q1 FY2022 Quarter Performance - Consolidated Figures in Mn unless otherwise indicated Actual Actual QoQ Growth Actual YoY Growth QE Sept 21 QE June 21 % QE Sept 20 % Total Revenue (In $ Mn) $ 214.3 $ 210.6 1.7% $ 180.1 19.0% Revenue from Operations ₹ 15,826 ₹ 15,
Slide 11: H1 FY2022: Compared to H1 FY2021
H1 FY2022: Compared to H1 FY2021 Half Yearly Performance - Consolidated Figures in Mn unless otherwise indicated Actual Actual Variance H1 FY 22 H1 FY 21 % Total Revenue (In $ Mn) $ 424.9 $ 343.8 23.6% Revenue from Operations ₹ 31,331 ₹ 25,685 22.0% Other Operating Revenue ₹ - ₹ - Total Revenue ₹ 31
Slide 12: Revenue Composition – Healthcare vertical continues to grow
Revenue Composition – Healthcare vertical continues to grow, UK is now second-largest market by origination Revenue Split - by Delivery Location Revenue Split - by Vertical* Revenue by Origination Jamaica, 7.0% Media, 2.8% Others, 15.2% Telecom & Others**, 1.0% Technology, Canada, 9.3% Canada, 9.7%
Slide 13: As on Sept 30, 2021: Debt of Rs 3,445 mn: 47% are Term Loans
As on Sept 30, 2021: Debt of Rs 3,445 mn: 47% are Term Loans Consolidated Debt description by Type Consolidated Debt description by Categories Total Fixed Interest Loans, 7% External Commercial Loan (Fixed interest rate), 27% Total Term Loans, 20% Total USD LIBOR Total Working Total ECB Loan, Capita
Slide 14: Debt reduction of Rs 491 mn in H1 FY22
Debt reduction of Rs 491 mn in H1 FY22 Figs in INR Mn Gross Bank Debt Cash & Cash Equivalent Net Bank Debt/(Cash) (1,365) (4,200) (5,008) 3,936 5,300 3,790 7,990 3,445 8,453 FY 21 Q1 FY 22 Q2 FY 22
Slide 15: Strong Cash Flow Generation, Increasing ROCE
Strong Cash Flow Generation, Increasing ROCE Fig. in INR Mn 137% CAPEX (in INR Mn) 81% 49% 1,581 448 744 7,734 2,321 2,269 FY 21 Q1 FY 22 Q2 FY 22 FY 21 Q1 FY 22 Q2 FY 22 Average Capital Employed (INR Mn) Business ROCE % 30% 35,000 34,000 25.8% 33,000 DSO (In Days) 24.9% 32,000 25% 31,000 30,000 29,
Slide 16: 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 83.2 83.7 80.0 50.6 76.9 48.6 26.9 111.0 85.0 39.5 1.0 101.0 FY 22 FY 23 FY 24 FY 25 FY 22 FY 23
Slide 17: Summary Financial Profile – As on 12th November 2021
Summary Financial Profile – As on 12th November 2021 HGSL Particulars Rs. USD Net Worth (in millions) 22,601 304.6 Book value per share 1,082 14.6 ▪ P/E calculated as per CMP of Rs 2,765.0 (November 12, 2021) Price per share 2,765.0 37.2 ▪ USD/INR exchange rate Dividend per share 17.0 0.23 73.64 for
Slide 18: Revenue Profile
CHGS Revenue Profile
Slide 19: H1 FY2022: Revenue Profile
H1 FY2022: Revenue Profile Client Concentration Channel Mix Top Customer Top 5 Customers Top 10 Customers Digital, Healthcare 9.5% Non-Healthcare Digital, 0.4% Non Voice, 10.6% 91.6% 83.5% Voice, 49.0% 67.1% 59.2% Non Voice, Voice, 50.6% 79.9% 49.5% 44.3% Digital, 38.9% 6.7% Overall Non Voice, 21.8%
Slide 20: H1 FY2022: Revenue Profile
H1 FY2022: Revenue Profile Revenue by Origination Healthcare Non-Healthcare Mena, JAMAICA, 0.1% Overall 1.4% PHILIPPINE Mena, S, 0.6% JAMAICA, Europe, 0.1% 0.7% 15.5% Europe, PHILIPPINE 31.1% S, 0.3% USA, 37.8% INDIA, USA, 5.0% 100% Canada, INDIA, 9.3% Canada, USA, 69.2% 9.9% 19.1%
Slide 21: HGS share price movement in last 12 months
HGS share price movement in last 12 months Revenues in US $ Mn. Share Price in INR on LHS 4000 Q2 FY 21 Q3 FY 21 Q4 FY 21 Q1 FY 21 Rev - 180 Rev - 197 Rev - 213 Rev - 211 EBITDA- 14.0% EBITDA- 14.2% EBITDA- 15.0% EBITDA- 15.0% 3500 3000 2500 ADTV = 32,799 shares ADTV = 83,862 shares 2000 ADTV = 46,3
Slide 22: HGS Share: Performance vs CNXIT and NIFTY 50
HGS Share: Performance vs CNXIT and NIFTY 50 !!
Slide 23: A global leader in business process management (BPM)
A global leader in business process management (BPM) and optimizing the customer experience lifecycle, HGS is helping make its clients more competitive every day. HGS combines technology-powered services in automation, analytics and digital with domain expertise focusing on back-office processing, c
Slide 24: Thank You
Thank You investor.relations@teamhgs.com
Hinduja Global Solutions — H1 FY2022 Earnings Presentation on 6ix