Moneycontrol
Aug 12, 2017 05:06 PM IST | Source: PTI

Hinduja Global Solutions Q1 net falls 20% to Rs 41.5 cr

The company's net profit stood at Rs 51.9 crore in the year-ago period.

Hinduja Global Solutions Q1 net falls 20% to Rs 41.5 cr

Hinduja Global Solutions (HGS) on Friday said its net profit declined 20 percent to Rs 41.5 crore for the quarter ended June 30, 2017.

The company's net profit stood at Rs 51.9 crore in the year-ago period, HGS said in a statement.

Its operating revenue, however, was up 1.9 per cent to Rs 927.1 crore for the reported quarter as against Rs 909.5 crore in April-June, 2016.

"June quarter has traditionally been a soft quarter for HGS. In line with this trend, topline in first quarter posted a moderate growth of 6.4 percent year-on-year in constant currency terms," HGS CEO Partha DeSarkar said.

Revenue growth and margins in rupee terms were muted, mainly due to adverse forex impact of 4.5 percent from a strong rupee and lower profitability of India domestic business, he added.

"Looking ahead, we see a robust pipeline led by our investments in client-facing activities and technology-led solutions in automation, digital and analytics. As with previous years, we expect second half to be better than the first half (April-September)," he said.

HGS' capex and investments stood at Rs 39.5 crore at the end of June 2017 quarter.

It had 44,877 employees as on June 30, 2017.

The company received about 65 percent of revenues from the US, 11 percent from Canada, 8 percent from the UK and Europe and 16 percent from India.

"Revenue growth in the first quarter was mainly driven by domestic revenues, aided by a decent 10.3 percent year-on- year growth from healthcare, with US dollar originating revenues growing 5.2 percent year-on-year," HGS said in an investor presentation.

The Board has declared an interim dividend of Rs 2.5 per share.
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