Hinduja Global Solutions Limited · NSE:HGS
Hinduja Global Solutions — Q3 FY2022 Earnings Presentation
29 slides from Hinduja Global Solutions's earnings presentation, Feb 14, 2022
Slide 1: Q3 FY2022 Earnings Call Presentation cover letter to exchanges
February 14, 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: Q3 FY2022 Earnings Call Presentation
Slide 2: HGS Earnings Call Presentation Q3 and 9M FY2022
HGS Earnings Call Presentation Q3 and 9M FY2022 February 14, 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: A new brand identity and logo for HGS
A new brand identity and logo for HGS VISION To be the world’s leading expert in transforming customer experiences for the most admired brands MISSION The new brand identity represents HGS’ focus on continually creating more satisfying customer experiences, stronger employee engagement, Innovate, op
Slide 5: Business Performance Update for Q3 and 9M FY2022
Business Performance Update for Q3 and 9M FY2022
Slide 6: Revenue Growth: Retained Business has grown faster than Healthcare
Revenue Growth: Retained Business has grown faster than Healthcare Y-o-Y Quarterly Revenue Performance Y-o-Y YTD Dec Revenue Performance In INR Mn In INR Mn 17,484 48,815 14,568 40,253 9,455 7,993 8,029 24,833 23,982 21,856 6,575 18,398 Q3 Q3 Q3 Q3 Q3 Q3 YTD YTD YTD YTD YTD YTD FY 21 FY 22 FY 21 FY
Slide 7: Strong growth for HGS Cons.: Q3 FY2022 vs Q3 FY2021
Strong growth for HGS Cons.: Q3 FY2022 vs Q3 FY2021 In INR (Mn) In INR (Mn) ₹ ₹ 17,484 ₹ 2,820 ₹ 2,312 14,568 Q3 FY 21 Q3 FY 22 Q3 FY 21 Q3 FY 22 REVENUES EBITDA In INR (Mn) In INR (Mn) ₹ 1,638 ₹ 2,148 ₹ 752 ₹ 1,105 Q3 FY 21 Q3 FY 22 Q3 FY 21 Q3 FY 22 PBT PAT
Slide 8: Q3 FY2022: Drivers of Growth
Q3 FY2022: Drivers of Growth ▪ Robust volumes for Open Enrolment and holiday season demand – leading to significant growth and ramp ups ▪ UK – continues its spectacular performance, Q3 revenue growth of 61% YoY ▪ Strong traction in Digital business o Signed 16 engagements with new and existing clien
Slide 9: HGS Cons. Performance Summary: 9M FY2022 vs 9M FY2021
HGS Cons. Performance Summary: 9M FY2022 vs 9M FY2021 In INR (Mn) In INR (Mn) ₹ ₹ 48,815 ₹ 7,901 ₹ 6,096 40,253 YTD Dec FY 21 YTD Dec FY 22 YTD Dec FY 21 YTD Dec FY 22 REVENUES EBITDA In INR (Mn) In INR (Mn) ₹ 4,173 ₹ 5,495 ₹ 2,764 ₹ 2,057 YTD Dec FY 21 YTD Dec FY 22 YTD Dec FY 21 YTD Dec FY 22 PBT
Slide 10: Looking ahead – Q4 FY2022
Looking ahead – Q4 FY2022 ▪ Growing BPM demand market ▪ Aggressive client activity in digital-led segments ▪ HGS has a healthy sales pipeline, especially in digital and Public Sector ▪ Expect significant ramp ups in Q4 ▪ Focus on sustained growth in CES and Digital businesses – revenue, profitabilit
Slide 11: M&A - Healthcare Divestment Closure
M&A - Healthcare Divestment Closure ▪ Completed the sale of healthcare services business to wholly-owned subsidiaries of Betaine BV (‘Buyer’), funds affiliated with Baring Private Equity Asia (BPEA) on January 6, 2022 ▪ Transaction based on enterprise value of US$ 1,200 million, subject to closing a
Slide 12: For our Shareholders
For our Shareholders HGS continues to evaluate options to reward the shareholder community, who have been long-time investors with us, in a tax-efficient way. Since January, 2022, HGS has made the following announcements – ▪ January 6 , 2022: Announced 3rd Interim Dividend of Rs. 150/share; paid out
Slide 13: M&A: Acquisition of Diversify Offshore, Australia
M&A : Acquisition of Diversify Offshore, Australia ▪ January 29, 2022: HGS’ subsidiary, HGS International Mauritius, entered into a definitive agreement to acquire 100% equity stake in Diversify Offshore Staffing Solutions Pty Ltd., Australia. ▪ Transaction to be completed by first week of March, 20
Slide 14: M&A: In-principle approval for acquisition of NXTDIGITAL's digital biz
M&A : In-principle approval for acquisition of NXTDIGITAL’s digital biz ▪ January 14, 2022: HGS’ Board agreed in-principle to acquire the digital biz of NXTDIGITAL Limited (‘NDL’), a related party ▪ Appointed independent valuers to arrive at share exchange (swap) ratio ▪ Acquisition of NDL’s digital
Slide 15: Driving our new journey as HGS 2.0
Driving our new journey as HGS 2.0
Slide 16: Future vision: What do we want to be by 2025
Future vision: What do we want to be by 2025 ▪ A Technology-led Customer Experience Transformation Company ▪ Operating at the confluence of Marketing, Commerce, Technology, Data and Process Management to deliver Frictionless Marketing Customer Journeys How do we get there? Process Commerce ▪ Focus o
Slide 17: HGS delivers frictionless experiences at scale
HGS delivers frictionless experiences at scale A distinctive set of end-to-end services are needed under each area to deliver modern digital experiences DOMAINS Marketing Commerce Technology Data & Process Analytics Management FULL-SERVICE DIGITAL CX SERVICES PARTNER VERTICALS Direct-to-Consumer Tec
Slide 18: Financial Update
Y has Financial Update
Slide 19: Q3 FY2022 Vs. Q3 FY2021
Q3 FY2022 Vs. Q3 FY2021 Quarter Performance - Consolidated Figures in Mn unless otherwise indicated Actual Actual YoY Growth QE Dec 21 QE Dec 20 % Total Revenue (In $ Mn) $ 233.6 $ 197.2 18.4% Revenue from Operations ₹ 17,484 ₹ 14,568 20.0% Total Revenue ₹ 17,484 ₹ 14,568 20.0% EBITDA ₹ 2,820 ₹ 2,31
Slide 20: YTD FY2022 vs. YTD FY2021
YTD FY2022 vs. YTD FY2021 YTD Performance - Consolidated Figures in Mn unless otherwise indicated Actual Actual Variance YTD Dec FY 22 YTD Dec FY 21 % Total Revenue (In $ Mn) $ 658.7 $ 540.8 21.8% Revenue from Operations ₹ 48,815 ₹ 40,253 21.3% Revenue Growth of 21.3% Total Revenue ₹ 48,815 ₹ 40,253
Slide 21: Debt reduction of Rs 1,365 mn in Q3 FY21 and Rs 1,856 mn till Q3 FY22
Debt reduction of Rs 1,365 mn in Q3 FY21 and Rs 1,856 mn till Q3 FY22 Figs in INR Mn Gross Bank Debt Cash & Cash Equivalent Net Bank Debt/(Cash) (1,365) (4,200) (5,008) (4,632) 3,936 5,300 3,790 7,990 3,445 8,453 2,080 6,711 FY 21 Q1 FY 22 Q2 FY 22 Q3 FY 22
Slide 22: As on 14th February 2022
As on 14th February 2022 As on 31st December 2021 As on 14th February 2022 (In INR Mn) (In INR Mn) Debt 2,080 1,220 ICD’s to Related Parties 3,893 4,995 Discussions in progress to repay the balance debt with minimal penalties by March 2022. Hopefully, we will become a debt-free company soon.
Slide 23: Other Key Parameters
Other Key Parameters Fig. in INR Mn 65% CAPEX (in INR Mn) 43% 1,581 1,653 8,674 7,901 FY 21 YTD Dec FY 22 FY 21 YTD Dec FY 22 Average Capital Employed (INR Mn) Business ROCE % DSO (In Days) 30% 27.3% 35,000 34,000 33,000 32,000 25% 31,000 30,000 29,000 28,000 20% 18.0% 27,000 26,000 25,000 24,000 23
Slide 24: Summary Financial Profile
Summary Financial Profile HGSL Particulars Rs. USD Net Worth (in millions) 23,682 317.9 Book value per share 1,133 15.2 ▪ P/E calculated as per CMP of Rs 2,493.4 (February 14, 2022) Price per share 2,493.4 33.0 ▪ USD/INR exchange rate Dividend per share 195.0 2.62 73.89 for the TTM 74.50 month end-S
Slide 25: Retained Business: Revenue Composition
Retained Business: Revenue Composition Revenue by Delivery Location Revenue by Origination India, 12.7% Others, 1.7% Jamaica, 3.7% INDIA, 10.7% Philippines, Canada, 5.3% USA, 37.2% 18.8% Canada, 19.0% USA, 33.3% UK, 26.2% UK, 31.4% Fig. as on YTD Dec FY2022 * Others Include revenues originated from
Slide 26: Revenue by Vertical for Retained Businesses
Revenue by Vertical for Retained Businesses Revenue Split - by Verticals Consumer Elec, Products, Svcs & Retail, 15.9% Others, 34.9% Telecom & Technology, Media, 26.6% Chemicals & Biotech, 4.6% BFS, 18.0% Fig. as on YTD Dec 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, 9.4% Retained Business Non Voice, 57.3% 10.5% 43.0% Voice, 11.6% 80.1% Retained Business Fig. as on YTD Dec FY2022
Slide 28: HGS Share: Performance vs CNXIT and NIFTY 50
HGS Share : Performance vs CNXIT and NIFTY 50 !!
Slide 29: Thank You
Thank You investor.relations@teamhgs.com
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