Hinduja Global Solutions Limited · NSE:HGS
Hinduja Global Solutions — Q4 FY2022 Earnings Presentation
30 slides from Hinduja Global Solutions's earnings presentation, May 30, 2022
Slide 1: Cover letter to stock exchanges for Q4 FY2022 presentation
May 30, 2022 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/ Madam, Sub: Q4 FY2022 Earnings Call Presentation This
Slide 2: HGS Earnings Call Presentation Q4 and Full-year FY2022
HGS Earnings Call Presentation Q4 and Full-year FY2022 May 30, 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: HGS posts strong growth
HGS posts strong growth Y-o-Y Quarterly Revenue Performance Y-o-Y YTD Mar Revenue Performance In INR Mn In INR Mn 7,620 8,655 15,636 9,144 26,018 32,637 55,889 57,959 Q4 Q4 Q4 Q4 YTD YTD YTD YTD FY 21 FY 22 FY 21 FY 22 Mar 21 Mar 22 Mar 21 Mar 22 Retained Business Overall HGS Retained Business Overa
Slide 5: Q4 FY22 vs Q4 FY21 (Retained Business)
Q4 FY22 vs Q4 FY 21 (Retained Business) In INR (Mn) In INR (Mn) ₹ ₹ 8,655 ₹ 170 ₹ 52 7,620 Q4 FY 21 Q4 FY 22 Q4 FY 21 Q4 FY 22 REVENUES EBITDA In INR (Mn) In INR (Mn) ₹ -8 ₹ 473 ₹ -106 ₹ -176 Q4 FY 21 Q4 FY 22 Q4 FY 21 Q4 FY 22 PBT PAT
Slide 6: FY22 vs FY21: Retained Business
FY22 vs FY 21 : Retained Business In INR (Mn) In INR (Mn) ₹ 32,637 ₹ 1,134 ₹ ₹ 776 26,018 YTD Mar FY 21 YTD Mar FY 22 YTD Mar FY 21 YTD Mar FY 22 REVENUES EBITDA In INR (Mn) In INR (Mn) ₹ 31 ₹ 373 ₹ -586 ₹ -1,129 YTD Mar FY 21 YTD Mar FY 22 YTD Mar FY 21 YTD Mar FY 22 PBT PAT
Slide 7: FY22 vs FY21: Overall, including divested healthcare biz
FY22 vs FY 21 : Overall, including divested healthcare biz In INR (Mn) In INR (Mn) ₹ ₹ 57,959 ₹ 8,674 55,889 ₹ 7,376 YTD Mar FY 21 YTD Mar FY 22 YTD Mar FY 21 YTD Mar FY 22 REVENUES EBITDA In INR (Mn) In INR (Mn) ₹ 3,361 ₹ 61,036 ₹ 71,549 ₹ 4,440 YTD Mar FY 21 YTD Mar FY 22 YTD Mar FY 21 YTD Mar FY
Slide 8: Healthcare business update
Healthcare business update ▪ Healthcare business divested to unlock significant shareholder value (effective January 6th, 2022) ‒ enterprise value of US$ 1,200 mn, subject to closing adjustments ▪ 40% of purchase consideration received in India, rest overseas ▪ Sale of healthcare business (Rs. mn) P
Slide 9: CES business shows strong growth
CES business shows strong growth ▪ Consumer Engagement Solutions business – growth led by the UK and US geos… both onshore and offshore ▪ UK business: ‒ spectacular performance in revenue & profitability… YoY revenue growth of 36.5% ‒ EBITDA around 3.8x over FY2021 ‒ One of the biggest wins for HGS’
Slide 10: Digital services witnesses robust growth
Digital services witnesses robust growth ▪ Digital services business grew revenue by 28.2% YoY ▪ Multiple new clients signed up in the year ▪ Won biggest client for HGS Digital in Q3 (offering cloud related services) ▪ Great demand for digital solutions led by Cloud and the 3As (Analytics, Automatio
Slide 11: HGS Snapshot – FY2022
HGS Snapshot – FY2022 Big enough to deliver globally, strong enough to invest, but small enough to really care 38 7 $439 M 750+ delivery centers countries in revenue digital transformation consultants ~22K 200+ Rs. 245/share 17 BPM clients employees languages 730+ total dividend given in FY2022 HRO
Slide 12: Driving our new journey as HGS 2.0 – Way Forward
Driving our new journey as HGS 2.0 Way Forward
Slide 13: Market scenario: CXM market is growing but shifting
Market scenario: CXM market is growing but shifting Outsourced CXM market size and growth 2017-22E; revenue in US$ billion ▪ Despite the effects of the pandemic, CXM XX% YoY growth XX% CAGR outsourced market is expected to grow by 4-6%, to reach ~$96B (Everest Group) 3-4% 3-5% 3-5% 4-6% 96-98 ▪ Digi
Slide 14: HGS recognized as a Leader in 2022 Gartner Magic Quadrant for Customer Service BPO
HGS recognized as a Leader in 2022 Gartner® Magic QuadrantTM for Customer Service BPO
Slide 15: HGS Growth Plan
HGS Growth Plan Going forward, we want to… Driven by 3 Pillars ▪ Become a Digital-led Customer Experience Transformation Company Generating Achieving ▪ Scale our Digital CX capabilities in AI, Analytics, significant operational Automation, Cloud and Mixed Reality for Metaverse, growth efficiency lev
Slide 16: HGS will deliver frictionless experiences @ scale
HGS will deliver frictionless experiences @ scale A distinctive set of end-to-end services are needed under each area to deliver modern digital experiences Data & Process Commerce Technology Domains: Marketing Analytics Management Full Service Digital CX Services Partner Direct-to- Technology, Verti
Slide 17: Financial Update
Y has Financial Update
Slide 18: Q4 FY22 vs Q3 FY22 vs Q4 FY21 (Retained Business)
Q4 FY 22. Vs Q3FY22 Vs Q4 FY 21 (Retained Business) Quarter Performance - Consolidated Figures in Mn unless otherwise indicated Actual Actual QoQ Growth Actual YoY Growth QE Mar 22 QE Dec 21 % QE Mar 21 % Total Revenue (In $ Mn) $ 114.9 $ 107.3 7.1% $ 104.0 10.4% Revenue from Operations ₹ 8,655 ₹ 8,
Slide 19: FY22 vs FY21 Performance (Retained Business)
FY 22 vs FY21 Performance (Retained Business) YTD Performance - Consolidated Figures in Mn unless otherwise indicated Actual Actual YoY Growth YTD Mar FY 22 YTD Mar FY 21 Total Revenue (In $ Mn) $ 438.6 $ 351.0 25.0% Revenue from Operations ₹ 32,637 ₹ 26,018 25.4% Other Operating Revenue ₹ - ₹ - Tot
Slide 20: Summary Financial Profile
Summary Financial Profile HGSL Particulars Rs. USD Net Worth (in millions) 78,084 1,066.1 Book value per share 1,868 25.5 ▪ P/E calculated as per CMP of Rs 955.0 (May 30, 2022) Price per share 955.0 12.3 ▪ USD/INR exchange rate Dividend per share 220.0 3.00 74.13 for the TTM 73.24 month end-Mar EPS
Slide 21: Debt & Treasury Snapshot
Debt & Treasury Snapshot As on 31st December 2021 As on 31st March 2022 (In INR Mn) (In INR Mn) Debt 2,080 35 ICDs to Related Parties 3,893 11,245 Cash 2080 35, 209 Debt Investments 24,668
Slide 22: Other Key Parameters
Other Key Parameters CAPEX (in INR Mn) In INR Mn EBITDA FCF/EBITDA (%) 48.0% 43.3% 1,581 2,371 FY 21 FY22 DSO (In Days) 8,674 7,376 FY 21 FY22 72 65 FY 21 FY22
Slide 23: Buyback: Max Amount of Rs 9,750 Mn
Buyback : Max Amount of Rs 9,750 Mn HGSL StandAlone Consolidated Rs mn Rs mn Share Capital 418 418 Share Premium 143 143 General Reserves 5,380 5,380 Retained Earnings 33,080 67760 Total Applicable Networth' 39,021 73,701 25% of Networth 9,750 18,425 Permissible Amount 9,750
Slide 24: For Shareholders
For Shareholders Dividend/Share Total Dividend Outgo : Rs 5,120 mn 1st Interim 7 2nd Interim 10 1: 1 Bonus 3rd Interim 150 Buyback : 4th Interim 28 Of around Rs 9,750 mn based on FY 22 Audited Financials Final* 25* Detailed buyback process shall be Total 220** announced later. * Effectively Rs 50/sh
Slide 25: Retained Business: Revenue Composition
Retained Business: Revenue Composition Revenue Split - by Delivery Location Revenue Split - by Origination 3.8% 12.7% 10.3% 17.9% 17.7% 1.8% 5.5% India India Philippines Others USA USA UK UK Canada Can ada Jamaica 38.4% 26.3% 31.5% 34.0% FY2022 * Others Include revenues originated from Philippines,
Slide 26: Revenue by Vertical for Retained Businesses
Revenue by Vertical for Retained Businesses Revenue Split - by Verticals 32% 20% Technology & Telecom Consumer & Retail Banking & Financials 4% Media & Entertainment Chemicals & Biotech 8% 19% Public Sector & Others 18% FY2022
Slide 27: Revenue Profile for Retained Business
Revenue Profile for Retained Business Client Concentration Channel Mix Top Customer Top 5 Customers Top 10 Customers Digital, Retained Business 11.6% 52.0% Non Voice, 39.3% 10.9% 10.2% Voice, Retained Business 77.6% FY2022
Slide 28: Transaction with NXTDIGITAL
Transaction with NXTDIGITAL On Completion of the transaction with NXTDIGITAL : Acquisition of NXTDIGITAL media Business Share capital of HGSL will increase from 41.97 mn shares to 52.48 mn shares Transaction approved by the Boards of HGS and NXTDIGITAL in Feb 2022 NXTDIGITAL shareholders would own 2
Slide 29: HGS Share Performance vs CNXIT and NIFTY 50
HGS Share : Performance vs CNXIT and NIFTY 50 !!
Slide 30: Thank You
Thank You investor.relations@teamhgs.com
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