Hinduja Global Solutions Limited · NSE:HGS
Hinduja Global Solutions — Q4 FY2023 Earnings Presentation
32 slides from Hinduja Global Solutions's earnings presentation, May 29, 2023
Slide 1: HGS Earnings Call Presentation Q4 & Full-year FY2023
HGS Earnings Call Presentation Q4 & Full-year FY2023 May 29, 2023
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
Slide 4: Buyback plan – Quick Update
Buyback plan – Quick Update ▪ Opened on May 22, 2023; Ends on June 2, 2023 ▪ Final Buyback price @ Rs. 1,700 per equity share ▪ Aggregate consideration of Rs. 1,020 crores, excl. buyback tax ▪ Total number of shares to be bought back in the Buyback shall be up to 60 lakh equity shares 4
Slide 5: FY2023 – A year of continued change and adapting to an evolving industry
FY2023 – A year of continued change and adapting to an evolving industry FOCUS ON GROWTH DIGITAL-FIRST APPROACH PROUD OF MY TEAM Strong numbers on all • Proactive solutioning (HGS Agent X) • CSAT 2022 – scored an NPS of 65 - our highest ever! financial parameters • 100% stake acquisition in TekLink
Slide 6: HGS is now in the Big Apple
HGS is now in the Big Apple ▪ New East Coast operations will be HGS’ digital marketing and social engagement services hub ▪ Will focus on delivering social media, content production and digital marketing services to – o Corporate marketing teams o Agency-to-agency model ▪ New York City is home to ov
Slide 7: Barranquilla center in Colombia to support US clients
Barranquilla center in Colombia to support US clients About HGS in Barranquilla: Headcount as of March 31, 2023 121 Languages supported ENGLISH SPANISH PORTUGUESE About Barranquilla: Channels supported ▪ Population - ~2.3M VOICE TRANSACTION PROCESSING ▪ Labor pool - 1M available workers (Jan ‘23) ▪
Slide 8: FY2023 - Strong year overall
FY2023 - Strong year overall In INR (Cr) In INR (Cr) ₹ 5,023 ₹ 762 ₹ 4,479 ₹ 469 FY22 FY23 FY22 FY23 REVENUES EBITDA In INR (Cr) In INR (Cr) ₹ 202 ₹ 305 -(39) ₹ -110 FY22 FY23 FY22 FY23 PBT PAT * EBITDA includes Other Income
Slide 9: Q4 FY2023 Financials
Q4 FY2023 Financials In INR (Cr) In INR (Cr) ₹ 135 ₹ 1,227 ₹ 153 ₹ 1,168 Q4 FY 22 Q4 FY 23 Q4 FY 22 Q4 FY 23 REVENUES EBITDA In INR (Cr) In INR (Cr) ₹ 46 ₹ 22 -(3) ₹ 26 Q4 FY 22 Q4 FY 23 Q4 FY 22 Q4 FY 23 PBT PAT * EBITDA includes Other Income
Slide 10: Overall good performance in technology-led CX business
Overall good performance in technology-led CX business ▪ Traditional CX business showed steady growth, especially offshore and nearshore ▪ Offshore revenue has grown significantly by around 67% ▪ Significant expansion in existing client accounts and healthy pipeline ▪ UK has some headwinds; Our focu
Slide 11: Global Footprint – HGS Headcount
Global Footprint – HGS Headcount 20k+ Total Headcount 35 centers globally CANADA 2,101 UK 1,665 USA 1,209 JAMAICA INDIA 10,785 PHILIPPINES 1,593 COLOMBIA 3,208 121 AUSTRALIA 1
Slide 12: In summary
In summary FY2023 performance has been Made significant investments over Embraced Digital & AI technologies strong. Will continue to focus on the past 12 months to build a to deliver on our Digital CX promise sustained growth robust launchpad, and will in alignment with what the markets continue to
Slide 13: Taking forward our HGS 2.0 Strategy
Taking forward our HGS 2.0 Strategy
Slide 14: HGS 2.0 Growth Plan
HGS 2.0 Growth Plan Our Approach Driven by 3 Pillars ▪ Provide frictionless customer journeys, using the latest technologies of artificial intelligence, automation, analytics, generative AI and cloud Achieving Generating telephony. operational significant growth efficiency ▪ Continue to transform as
Slide 15: What we are doing
What we are doing Driven by 3 Pillars ▪ Focus on specific industry verticals with a Mid-Market strategy. Eg: Retail, Financial Generating Services, Technology/ Media/ Telecom, Fast-growing Tech, Public Sector, etc significant ▪ Push technology solutions aggressively. Eg: HGS Agent X, data & analytic
Slide 16: Our services portfolio is increasingly strengthened by technology
Our services portfolio is increasingly strengthened by technology ▪ ADM ▪ Social Engagement ▪ Contact center services ▪ Cloud ▪ Digital Marketing (voice) ▪ AI driven process reengineering ▪ Manpower driven back-office ▪ System integration (Content process management mgmt., CRM, portals) ▪ AI - unatt
Slide 17: Digital Media Business – An Update
Digital Media Business – An Update Vynsley Fernandes
Slide 18: Enterprise Business Unit
“Mesh Network” play Traction with customers as “the” integrated single- window service provider for Fiber and Satellite-based Enterprise Business Unit Broadband Managed SDWAN traction Q4 was a “Value proposition” validation Traction with customers on our “Solution focused” phase for EBU to determine
Slide 19: ONEDigital : Integrated Product Performance
ONEDigital : Integrated Product Performance No. of Combos Combo Performance Q4 FY2023 11,247 10,401 ▪ ONEDigital - India’s first integrated and convergent 9,074 8,235 7,785 “combo” product; offering customers broadband up 7,101 5,822 6,060 to 1,000 Mbps speeds, 650 digital television channels, 5,437
Slide 20: KPIs for Q4 FY2023
KPIs for Q4 FY2023 The overall Indian M&E industry, specifically the distribution sector continued to face challenges to growth in Q4. NXT remained focused on “retention”, performing above the industry-wide trend on key parameters. DTV Subscriber Base (Digital Video) DTV 90-day Net Churn BB Subscrib
Slide 21: Financial Update
Financial Update Srinivas Palakodeti
Slide 22: FY2023 Performance
FY2023 Performance Figures in INR Cr unless otherwise indicated Actual Actual Variance FY 23 FY 22 % Revenue from Operations 4,505.2 4,273.4 5.4% Other Income 518.0 205.5 152.0% Total Revenue 5,023.2 4,478.9 12.2% EBITDA 762.1 468.9 62.5% EBITDA % 15.2% 10.5% Depreciation 455.4 344.6 Interest Expens
Slide 23: Q4 FY2023 Performance
Q4 FY2023 Performance Figures in INR Cr unless otherwise indicated Actual Actual QoQ Growth Actual YoY Growth QE Mar 23 QE Dec 22 % QE Mar 22 % Revenue from Operations 1,069.8 1,119.1 -4.4% 1,110.0 -3.6% Other Income 98.4 45.5 116.2% 116.7 -15.7% Total Revenue 1,168.2 1,164.6 0.3% 1,226.7 -4.8% EBIT
Slide 24: Summary Financial Profile
Summary Financial Profile HGSL Particulars in INR Cr in USD Mn (Except per (Except per share data) share data) Shareholder's Fund 8,719.1 1,082.3 Book value per share 1,661.3 20.6 Price per share 1,156.8 14.4 Dividend per share 15.0 0.19 EPS (TTM)* 58.0 0.7 P/E Ratio (TTM) 19.9 19.9 • *This is Basic
Slide 25: Debt & Treasury Snapshot
Debt & Treasury Snapshot As on 31st March 2023 (In INR Cr) Cash and Treasury Surplus: Short Term Loans given 2,814 Cash & Bank Deposits 1,143 Debt Investments 2,734 Total Cash & Treasury Surplus 6,691 Less: Borrowings 321 Net Cash & Surplus Position 6,370
Slide 26: Revenue Composition of Rs. 5023.2 Cr
Revenue Composition of Rs. 5023.2 Cr Revenue Split by Source Other Income 10% BPM Business 61% Digital Services 29% BPM Business Digital Services Other Income FY2023
Slide 27: Operating Revenue Composition of Rs. 4505.2 Cr
Operating Revenue Composition of Rs. 4505.2 Cr Revenue Split - by Delivery Location Revenue Split - by Origination Jamaica, 4% Others 6% Canada, 13% Canada 13% India India, 32% 28% UK, 17% UK 21% Philippines, 9% USA 32% USA, 25% FY2023 • Others Include revenues originated from Philippines, Jamaica &
Slide 28: Operating Revenue (Rs.4505.2 Cr) Split by Vertical
Operating Revenue (Rs.4505.2 Cr) Split by Vertical Revenue Split by Vertical Telecom & Technology BFS 12% 15% Public Sector 12% Consumer Elec, Products, Svcs & Others Retail 10% 20% Media 31% FY2023
Slide 29: Revenue Profile
Revenue Profile Client Concentration DSO Top Customer Top 5 Customers Top 10 Customers DSO (In Days) 43.1% 28.7% 7.6% 61 59 FY22 FY23 Revenues of Rs 4505.2 Cr FY2023
Slide 30: Capex
Capex Capex CAPEX (in INR Cr) 498 294 FY22 FY23 FY2023
Slide 31: HGS Share : Performance vs CNXIT and NIFTY 50
HGS Share : Performance vs CNXIT and NIFTY 50
Slide 32: Thank You
Thank You investor.relations@teamhgs.com
Hinduja Global Solutions — Q4 FY2023 Earnings Presentation on 6ix