Business outsourced to India from US was presumed to come under jeopardy due to such rhetoric but Srinivas Palakodeti, Global CFO of Hinduja Global Solutions (HGS) feels that it is too early to have a clear sense of what may happen with Trump being elected to be the next President of US.
US President-elect Donald Trump, a realty tycoon who has never held public office before, created waves during his election campaign with the agenda of bringing jobs back to America and his protectionist rhetoric over trade policies.
Business outsourced to India from US was presumed to come under jeopardy due to such rhetoric but Srinivas Palakodeti, Global CFO of Hinduja Global Solutions (HGS), feels that it is too early to have a clear sense of what may happen with Trump being elected to be the next President of US.
Speaking to Moneycontrol, Palakodeti said that HGS has been in the US for around 16 years and has gone through the cycle of Republican as well as Democrat Presidents.
One needs to figure out what reality is going to be in terms of policy and the difference between policy and rhetoric, he said.
“His [Donald Trump’s] victory speech was completely different from the rhetoric he had followed in his campaign and at the end of the day he has a reputation of being business friendly,” he said.
The business and service provider headquartered in Bangalore receives 65 percent of its revenue comes from US, out of which 28 percent is delivered locally and the remaining 37 percent comes from India, Jamaica and Philippines.
In the quarter gone by the company won an engagement to support a leading
US-based healthcare client's customer calls and also launched a technical support program for a consumer electronics major from US.
Palakodeti said that the quarter was in line the company’s expectation and despite a minor setback of a client who did renew its contract (amounting to around 3.5 million pounds), HGS has a good order pipeline which will replace the client they were not able to retain by giving better margin business.
The company has its largest clients from the US healthcare sector and also has a strong client base in the telecom, technology segment and the consumer electronic and durables space from Europe and Canada.
For the second quarter of this fiscal HGS saw its net sales increased by 14.7 percent year-on-year (YoY) to Rs 905.2 crore and net profit stood at Rs 37.4 crore up 18.5 percent (YoY).
Read more: Hinduja Global Solutions Q2 net up 19.51% to Rs 37.42 cr
Going ahead there are capex plans of around Rs 160-170 crore and the remaining half of the fiscal is expected to give improved revenue growth rate and margins on the back of increased spending during Christmas and New Year, which spikes up volumes, he said.
Overall FY17 will have better margins than FY16, he added.
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .