Hinduja Global Solutions Limited · NSE:HGS
Hinduja Global Solutions — Q2 FY2023 Earnings Presentation
34 slides from Hinduja Global Solutions's earnings presentation, Nov 28, 2022
Slide 1: Exchange filing cover letter for Q2 FY2023 earnings call presentation
November 28, 2022 BSE Limited National Stock Exchange of India Ltd. Corporate Relation Dept. ”Exchange Plaza” P. J. Towers, Dalal Street Bandra Kurla Complex, Bandra Mumbai 400 001. (East) Scrip Code : 532859 Mumbai - 400 051. Symbol : HGS Dear Sirs/ Madam, Sub: Q2 FY2023 Earnings Call Presentation
Slide 2: HGS Earnings Call Presentation Q2 & H1 FY2023
HGS Earnings Call Presentation Q2 & H1 FY2023 November 28, 2022
Slide 3: 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 4: HGS is evolving into a new kind of digital CX company
HGS is evolving into a new kind of digital CX company The focus is to expand our digital Marketing services business significantly while driving growth in the core CES business – to become a digital-led Process Commerce Customer Experience Management Transformation Company Will leverage organic expa
Slide 5: Acquisition of the NXT Digital Media Business & Buyback Plan
Acquisition of the NXT Digital Media Business & Buyback Plan Acquisition of the NXT Digital Media Business ▪ Hon’ble NCLT Order for demerger of NXTDIGITAL Limited’s (NDL) Media Business into HGS received on 11th November 2022 ▪ 1.0689 Crores Shares allotted to NDL shareholders on November 25, 2022 ▪
Slide 6: NXT Digital
NST DIGITAL
Slide 7: About the Digital Media business
About the Digital Media Key brands business ▪ Merger boosts HGS’ presence in India, adding nearly 1,200 people and India-originated revenue ▪ Pan-India reach with presence in over 1,500 cities ▪ Franchisee base of nearly 10,000 ▪ Digital Services Partners delivering digital services to more than 5 m
Slide 8: The synergies and opportunity
The synergies and opportunity Huge opportunity to participate in the Create a global telecom and media ecosystem to Digital India Initiative serve B2B and B2C segments ▪ Changing Trends in Digital Content Consumption ▪ Cross-leverage expertise and tech capabilities to provide limitless possibilities
Slide 9: Digital Media business – Q2 FY2023 Highlights
Digital Media business – Q2 FY2023 Highlights Vynsley Fernandes
Slide 10: Digital Media business – a snapshot
Digital Media business – a snapshot • India’s premier integrated Digital Delivery Platforms Company and only HITS (Headend-In-The-Sky) platform in Asia • Pan-India reach with presence in over 1,500 cities • Franchisee base of nearly 10,000 Digital Services Partners, delivering digital services to mo
Slide 11: ONEDigital launch: True Convergence
ONEDigital launch : True Convergence ▪ Digital Media business has launched India’s first integrated and convergent “combo” product – ONEDigital ▪ The product offers customers… ▪ broadband with speeds up to 1,000Mbps ▪ up to 650 digital SD & HD television channels ▪ access to over 300,000 hours of in
Slide 12: Broadband over satellite: Disruptive model
Broadband over satellite : Disruptive model ▪ Digital Media business has launched its broadband-over-satellite (BoS) solution “NXTSkyFi” through a retail and innovative enterprise ▪ Broadband over Satellite model complementing fiber where available, to ▪ First BoS commercial launch in India offering
Slide 13: Digital Media business ends Q2 FY2023 with strong KPIs
Digital Media business ends Q2 FY2023 with strong KPIs Subscriber Base (Digital Video) Digital Video ARPUs Broadband Subscriber Base & ARPUs ( in millions) (Exit ARPU in ₹) (in millions & exit ARPU in ₹ ) ₹268 ₹266 ₹266 4.06 4.17 4.18 129 120 120 1.15 1.10 0.72 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2F
Slide 14: Q2 and H1 FY2023 – Overall Performance Update
Q2 and H1 FY2023 – Overall Performance Update Partha DeSarkar
Slide 15: Highlights from HGS' Q2 FY2023 performance
Highlights from HGS’ Q2 FY2023 performance • Reporting combined results of the BPM and Digital Media businesses for the first time • Strong consolidated revenue growth of 25.0% YoY • 34.4% YoY revenue growth in the BPM business • Consolidated net profit of Rs. 238.9 cr, up 118.1% YoY • HGS announced
Slide 16: Financials – Q2 FY2023 (BPM Business)
Financials – Q2 FY2023 (BPM Business) In INR (Cr) In INR (Cr) 224.7 1,102.9 820.4 67.5 Q2 FY 22 Q2 FY 23 Q2 FY 22 Q2 FY 23 REVENUES EBITDA In INR (Cr) 170.2 5.7 Q2 FY 22 Q2 FY 23 PBT * EBITDA includes Other Income
Slide 17: Financials – Q2 FY2023 (Overall incl. Digital Media Business)
Financials – Q2 FY2023 (Overall incl. Digital Media Business) In INR (Cr) In INR (Cr) 1,369.0 1,095.2 276.5 117.3 Q2 FY 22 Q2 FY 23 Q2 FY 22 Q2 FY 23 REVENUES EBITDA In INR (Cr) In INR (Cr) 123.4 192.3 (32.4) (18.6) Q2 FY 22 Q2 FY 23 Q2 FY 22 Q2 FY 23 PBT PAT(continuing operations) PAT(Overall) * EB
Slide 18: Financials – H1 FY2023 (BPM Business)
Financials – H1 FY2023 (BPM Business) In INR (Cr) In INR (Cr) 2,147.4 395.6 1,648.4 141.8 H1 FY 22 H1 FY 23 H1 FY 22 H1 FY 23 REVENUES EBITDA In INR (Cr) 288.4 18.9 H1 FY 22 H1 FY 23 PBT *Note: All nos. are for HGS’ retained business comprising its digital-enabled customer experience (CX) solutions
Slide 19: Financials – H1 FY2023 (Overall incl. Digital Media Business)
Financials – H1 FY2023 (Overall incl. Digital Media Business) In INR (Cr) In INR (Cr) 2,690.3 499.6 2,187.5 244.7 H1 FY 22 H1 FY 23 H1 FY 22 H1 FY 23 REVENUES EBITDA In INR (Cr) In INR (Cr) 200.3 227.0 (36.4) (53.8) H1 FY 22 H1 FY 23 H1 FY 22 H1 FY 23 PBT PAT(continuing operations) PAT(Overall)
Slide 20: Overall good performance in CES business
Overall good performance in CES business ▪ Onshore: US, Canada and UK saw steady growth. Added 854 employees in the UK in Q2 ▪ Offshore: India, Philippines and Jamaica showed strong growth, especially from existing accounts ▪ Expansion with 2 new centers – Mysuru (India) and Belfast (UK) to meet inc
Slide 21: Digital Solutions business continues its strong momentum
Digital Solutions business continues its strong momentum ▪ Grew revenues by 63% YoY ▪ Cloud & Security and Digital Experience practices expanded significantly ▪ In September quarter, we signed 28 digital-led engagements across existing and new clients ▪ Pipeline looks healthy ▪ Rolled out HGS Agent
Slide 22: Looking ahead
Looking ahead BPM business: ▪ Seen good performance in H1 FY2023; cautiously optimistic for H2 ▪ Some headwinds in certain segments like UK Public Sector ▪ Demand for Offshore business remains strong ▪ Continued efforts to drive improved margins ▪ Focus on – ‐ Winning new clients through an integrat
Slide 23: Financial Update
Financial Update Srinivas Palakodeti
Slide 24: Q2 FY2023 performance: HGS BPM + Digital Media
Q2 FY2023 performance : HGS BPM+ Digital Media Quarter Performance - Consolidated Figures in INR Cr unless otherwise indicated Actual Actual QoQ Growth Actual YoY Growth QE Sep 22 QE June 22 % QE Sep 21 % Total Revenue (In $ Mn) $171.0 $170.0 0.6% $148.3 15.3% Revenue from Operations ₹ 1,167.5 ₹ 1,1
Slide 25: H1 FY2023 performance: HGS BPM + Digital Media
H1 FY2023 performance : HGS BPM + Digital Media Half Yearly Performance - Consolidated Figures in INR Cr unless otherwise indicated Actual Actual Variance H1 FY 23 H1 FY 22 % Total Revenue (In $ Mn) $ 341.0 $ 296.7 14.9% Revenue from Operations ₹ 2,316.2 ₹ 2,112.4 9.6% Other Income ₹ 374.1 ₹ 75.1 To
Slide 26: 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 8,602.4 1,057.1 Book value per share 1,639.0 20.1 Price per share 1,253.5 15.4 Dividend per share 5.0 0.06 EPS (TTM)* 44.1 0.5 P/E Ratio (TTM) 28.4 28
Slide 27: Debt & Treasury Snapshot: BPM + Digital Media Business
Debt & Treasury Snapshot : BPM + Digital Media Business As on 30th Sep 2022 (In INR Cr) Debt* 639 Short Term Loans given 2575 Cash 2,311 Debt Investments 2,645 • *Debt represents Bank Borrowings & ICDs taken
Slide 28: Other Key Parameters
Other Key Parameters CAPEX (in INR Cr) DSO (In Days) 237 97 60 64 FY22 H1 FY23 FY22 H1 FY23 FY22 include capex for the erstwhile healthcare business. DSO – Overall, includes BPM and Digital Media businesses H1 FY23 include capex for the NDL Media Business
Slide 29: Revenue Composition by Source
Revenue Composition by Source Revenue Split by Source Other Income, ₹ 201.4Cr 15% Digital Media Business, ₹ 245.2Cr 18% BPM Business, ₹ 922.3Cr 67% Q2 FY2023
Slide 30: Operating Revenue Composition of Rs. 1,167.5 Cr
Operating Revenue Composition of Rs. 1,167.5 Cr Q2 FY2023 • Others Include revenues originated from Philippines, Jamaica & Diversify
Slide 31: Operating Revenue Split by Vertical
Operating Revenue (Rs.1,167.5 Cr) Split by Vertical Q2 FY2023
Slide 32: Revenue Profile for BPM Business
Revenue Profile for BPM Business Client Concentration Channel Mix Top Customer Top 5 Customers Top 10 Customers Digital CX + HRO Business Digital, 14% 57.6% Non Voice, 13% 38.3% 9.7% Voice, 73% Digital CX + HRO Business Q2 FY2023
Slide 33: HGS Share: Performance vs CNXIT and NIFTY 50
HGS Share : Performance vs CNXIT and NIFTY 50 CNX IT Price: 29591.9 % Change: (18.6)% HGS has issued 1:1 Bonus , share went ex- Bonus on 22nd Feb’22
Slide 34: Thank You
Thank You investor.relations@teamhgs.com
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