Hinduja Global Solutions Limited · NSE:HGS
Hinduja Global Solutions — Q3 FY2025 Earnings Presentation
30 slides from Hinduja Global Solutions's earnings presentation, Feb 18, 2025
Slide 1: HGS Earnings Call Presentation Q3 & 9M FY2025
HGS Earnings Call Presentation Q3 & 9M FY2025 February 18, 2025 1
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: Overall Performance Update
Overall Performance Update Partha DeSarkar 3
Slide 4: Company at a Glance
Company at a Glance A global leader in optimizing the customer experience lifecycle, digital transformation, business process management and digital media ecosystem ▪ HGS serves 1K+ brands across BPM, technology and HRO ▪ 7K+ digital transformations | 2K+ analytics projects | 1K+ cloud migrations |
Slide 5: Snapshot of HGS' financial performance
Snapshot of HGS’ financial performance Q3 FY2025 9M FY2025 ▪ Total income stood at Rs. 1,234.9 crore ▪ Total income stood at Rs. 3,661.0 crore (US$ 147 million) (US$ 435.9 million) ▪ Operating revenue was Rs. 1,064.1 crore ▪ Operating revenue was Rs. 3,243.1 crore (US$ 126.7 million) (US$ 386.2 mill
Slide 6: Key business highlights
Key business highlights ▪ While delays in decision-making on award of contracts persist, we have won some significant deals in the technology services segment in Q3 – Led by HGS Agent X , AI, cloud, digital marketing, and analytics & planning services – Signed a core IT services engagement with a BF
Slide 7: We are Expanding…
We are Expanding… ▪ Our new geo South Africa is tracking well… Due to increased interest, we will double delivery capacity in Cape Town over the next few months ▪ New center inaugurated in Bengaluru, India in January 2025 - Focused on delivering core IT and AI Platform services to clients ▪ Delivery
Slide 8: Major Business Transformation in progress @ HGS
Major Business Transformation in progress @ HGS Leading to a “Sustainable Technology Driven Business” Profile
Slide 9: Lower Revenues in the Short Term with Increasing Margins over time
Sustainable Technology Driven Business Technology Services Digital Operations Traditional CX Expand Capabilities & Increase Transition BPM Services into Drive Client Retention & Higher Recurring Revenue Verticalized AI Driven PaaS Margins from BPM Clients ▪ Move from Projects to Managed ▪ AI Based U
Slide 10: Traditional CX
Global Shoring ▪ Existing Clients increasingly transitioning to South Africa/ Colombia and Philippines ▪ Several new deals are offshore-based Traditional CX ▪ Support functions are being centralized from Philippines/ India AI Supported CX ▪ Agent X - Knowledge Assist & Training deployed across the A
Slide 11: Digital Operations
AI Driven Unattended CX ▪ Fully automated Quality Assurance (QA) Digital ▪ Disclosure Bot expanded beyond HGS agents to their Global footprint ▪ Multiple Pilots in Unattended CX and automated QA Operations ▪ Voice Auth, Automated QA and Voice Translation Note – All the above-mentioned opportuni
Slide 12: Technology Services
Move to Recurring Revenue Technology ▪ Managed Services proposal out to multiple technology services (DX / Services Analytics) clients ▪ Closed a multi-year deal with a Bank for core IT Services Expand Capabilities & Increase New Capability Development Recurring Revenue IT Outsourcing/ Global Capabi
Slide 13: Strategic Developments
Verticalization of Sales / Account Mngt ▪ Improved Customer Engagement: Vertical-specific strategies have enhanced customer engagement in BFSI, TMT, and Consumer Goods & Retail. Strategic ▪ Pipeline Growth: Verticalization has led to increased visibility and pipeline in strategic markets. ▪ Bespoke
Slide 14: Building Industry-Leading in Digital Ops & CX Innovation
Building Industry-Leading in Digital Ops & CX Innovation Recognized by leading industry analysts as a leader amongst the largest organizations in the market. 2024 LEADER FOR DIGITAL OPS, INTELLIGENT AGENT EXPERIENCE, AND INTELLIGENT CX
Slide 15: Recognized for our Experiences and Talent
Recognized for our Experiences and Talent SOLE GOLD WINNER IN MOST INNOVATIVE BEST PRACTICE’ IN THE CONTACT CENTER SOLUTION CATEGORY ‘CUSTOMER EXPERIENCE EXCELLENCE THROUGH (FOR HGS AGENT X) DIGITAL TRANSFORMATION CERTIFIED - G.P.T.W.: 2024 WINNER FOR PROVIDING BEST CANADA & PHILIPPINES EMPLOYEE EXP
Slide 16: Digital Media Business: An Update
Digital Media Business: An Update Vynsley Fernandes 16
Slide 17: Industry & Environment
Industry & Environment Budget 2025 Impact on Telecom Secto: 'y cut on ethernet switches to boost telecom infrastructure & rural broadband Minister Nirm man Union Budget. This chan Ragsoniral > BUDGET Government to provide broadband connectivity to rural schools and PHCs under BharatNet "Broadband co
Slide 18: Broadband KPIs
Broadband KPIs The Broadband vertical continued to see positive traction in Q3 FY2025, improving on all KPIs, most notably in the ARPUs of the retail business segment. ▪ The vertical continued to build a robust diversified portfolio – with Broadband revenue contribution %age by business segment the
Slide 19: DTV KPIs
DTV KPIs The Digital Television (DTV) vertical continued its focus on “retention” in Q3 FY2025 – focusing on improving ARPUs through several key marketing initiatives, including a renewed push of the integrated product – combining broadband & DTV. These initiatives delivered lower (better) churn in
Slide 20: Financial Update
Financial Update Srinivas Palakodeti 20
Slide 21: Overall Performance: Q3 FY25 vs Q2 FY25 vs Q3 FY24
Overall Performance : Q3 FY 25 vs Q2 FY 25 vs Q3 FY 24 Amount in INR Cr Actual Actual Actual Particulars Q3 FY 25 Q2 FY 25 Q3 FY 24 Revenue from Operations 1,064.1 1,087.2 1,203.7 Depreciation 137.5 133.2 141.9 Interest Expense 55.6 62.4 48.5 Other Income 170.8 120.4 91.2 PBT 41.3 (40.7) 16.2 Tax 49
Slide 22: Overall Performance: YTD Dec 2024 vs YTD Dec 2023
Overall Performance : YTD Dec 2024 vs YTD Dec 2023 Amount in INR Cr Actual Actual Particulars YTD Dec 2024 YTD Dec 2023 Revenue from Operations 3,243.1 3,517.0 Depreciation 401.9 400.6 Interest Expense 174.4 133.0 Other Income 417.9 312.9 PBT (43.6) 69.1 Tax 72.5 25.8 PAT 102.4 43.2 Total Income 3,6
Slide 23: Balance Sheet: Overall
Balance Sheet: Overall Amount in INR Cr As at As at As at As at Particulars Dec 24 Mar 24 Particulars Dec 24 Mar 24 EQUITY AND LIABILITIES ASSETS Equity Non-current assets Share capital 46.5 46.5 Fixed assets and leases 1,478.1 1,250.5 Other equity* 7,784.8 7,595.9 Intangibles 1,515.5 1,519.3 Total
Slide 24: Cash Flow: Overall
Cash Flow: Overall Amount in INR Cr 9 months Ending 12 months Ending Particulars 31st Dec 2024 31st Mar 2024 Profit Before Tax 174.9 110.5 Non-operating adjustments 75.9 293.2 Change in operating assets and liabilities 119.3 (147.3) Income taxes paid (net) (98.3) (64.0) Cash from operating activitie
Slide 25: Summary Financial Profile
Summary Financial Profile HGSL Particulars in INR Cr in USD Mn (Except per (Except per Amount in INR Cr share data) share data) Particulars Dec-24 Sep-24 Change Gross Treasury & Cash Surplus 6,365.1 6,347.3 17.8 Shareholder's Fund 7,831.3 932.5 Total Borrowings 1,212.6 1,257.1 -44.5 Net Treasury & C
Slide 26: Q3 FY2025: Operating Revenue Composition of Rs. 1,064 Cr
Q3 FY2025: Operating Revenue Composition of Rs. 1,064 Cr Operating Revenue Split by Source Digital & Media Services 43% CX Services 57% CX Services Digital & Media Services 26
Slide 27: Q3 FY2025: Operating Revenue Composition of Rs. 1,064 Cr
Q3 FY2025: Operating Revenue Composition of Rs. 1,064 Cr Revenue Split - by Delivery Location Revenue Split - by Origination Others, 4% Australia Others Philippines, 2% 12% 6% Canada 12% India India, 41% 36% UK, 10% UK 13% Canada, 10% USA USA, 24% 31% Others: Jamaica, Colombia Others : Philippines,
Slide 28: Q3 FY2025: Operating Revenue Split by Vertical
Q3 FY2025: Operating Revenue Rs. 1,064 Cr - Split by Vertical Q3 FY25-Revenue Split by Vertical BFSI, 17% Consumer & Tech, Media & Retail, 14% Telecom, 53% Others, 2% Health & Life Sciences, 4% Public Sector, 10% 28
Slide 29: Q3 FY2025: Revenue Profile
Q3 FY2025: Revenue Profile Client Concentration DSO Top Customer Top 5 Customers Top 10 Customers DSO (In Days) 32.2% 65 61 23.4% 60 9.9% Q1 FY25 Q2 FY25 Q3 FY25 Revenues of Rs 1,064 Cr 29
Slide 30: Thank You
Thank You investor.relations@teamhgs.com
Hinduja Global Solutions — Q3 FY2025 Earnings Presentation on 6ix