Hinduja Global Solutions Limited · NSE:HGS
Hinduja Global Solutions — Q1 FY2024 Earnings Presentation
25 slides from Hinduja Global Solutions's earnings presentation, Aug 10, 2023
Slide 1: HGS Earnings Call Presentation Q1 FY2024
HGS Earnings Call Presentation Q1 FY2024 August 10, 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: Update on the Buyback plan
Update on the Buyback plan ▪ Buyback part of overall value sharing programme created from the sale of the erstwhile healthcare business ▪ Buyback Programme opened on May 22, 2023 and completed on June 9, 2023 ▪ 60 lakh equity shares bought back at a price of Rs. 1,700/ share ▪ Rs. 1,020 crore return
Slide 5: TekLink acquisition
TekLink acquisition ▪ HGS acquired analytics and planning services ▪ Q1 FY2024 – Recorded US$ 8.8 million with firm TekLink International in March 2023 EBITDA margins of around 22.2%. ▪ Acquisition in line with our vision to become a ▪ Signed multiple projects with 24 existing clients technology-led
Slide 6: HGS’ CX hub in Barranquilla ramps up
HGS’ CX hub in Barranquilla ramps up ▪ Formal inauguration of our facility in Barranquilla in July 2023 ▪ The CX hub has around 150 employees; expected to double headcount by end of CY 2023 ▪ Currently supports clients in logistics and consumer industries with English, Spanish and Portuguese CX requ
Slide 7: Spotlight on HGS’ technology efforts
Spotlight on HGS’ technology efforts Significant investments in AI, cognitive intelligence, analytics and automation – both for clients and internal transformation. Here’s a snapshot of what we are doing with AI-led innovation. ▪ HGS Agent X – a comprehensive, cloud- ▪ Generative AI is a new area of
Slide 8: Summary Financial Performance
Summary Financial Performance INR Cr For Adjusted EBITDA, one time provision reversal of Rs. 25 Cr. in Q1 FY 23 has been excluded. Refer note 4- Standalone Financial results for the quarter ending June 2022 Adjusted Operating EBITDA excludes Other Income
Slide 9: Overall good performance
Overall good performance ▪ CX business showed steady growth ▪ Strong demand, especially in Canada and offshore/ nearshore businesses, leading to higher volumes ▪ Significant expansion in existing client accounts and healthy pipeline ▪ Focus on improving profitability by changing the Onshore-Offshore
Slide 10: In summary
In summary Strong sequential growth, led by Focus on integrated sales strategy Investing significantly in technology higher volumes and better toward signing more technology- and talent within HGS EBITDA margins led CX deals Sustained efforts to build a future Will continue to focus on Continued eff
Slide 11: Digital Media Business – An Update
Digital Media Business – An Update Vynsley Fernandes
Slide 12: NXTPLAY OTT Aggregator app
NXTPLAY OTT Aggregator app NXTPLAY OTT aggregator app was launched in end- June’23, giving subscribers over 300,000 hours of local and global OTT content NXTPLAY gives subscribers access to 25+ OTT platforms through a single app – delivering content across multiple genres and local languages; for mo
Slide 13: “Bundled” Offering Strategy
“Bundled” Offering Strategy NXTPLAY is being bundled with DTV as a “retention” strategy whilst being offered as an “add-on” for broadband penetration, especially in Tier 3 & Tier 4 markets.
Slide 14: NLD Roll-Out
NLD Roll-Out 05 Mumbai Mumbai Ratnagiri ▪ 8,000 kms across 10 states Panjim ▪ Covers 150+ cities and towns enroute using Belgaum OPGW & Underground connectivity Delhi 04 ▪ Will deliver 1 Tbps capacity with Delhi 03 Mumbai DWDM/IPoDWDM Haridwar Dehradun Mumbai Ahmedabad Jaipur Delhi Delhi 02 Delhi 01
Slide 15: KPIs - Q1 FY2024
KPIs - Q1 FY2024 NXT remained focused on retention & improving quality of earnings. The increased cost of content based on NTO 3.0 across digital distribution platforms (CATV, HITS & DTH) created significant challenges to growth. Digital Television (DTV) Subscriber Base DTV ARPUs (Average Revenue Pe
Slide 16: Financial Update
Financial Update Srinivas Palakodeti
Slide 17: Summary Financial Performance
Summary Financial Performance INR Cr For Adjusted EBITDA, one time provision reversal of Rs. 25 Cr. in Q1 FY 23 has been excluded. Refer note 4- Standalone Financial results for the quarter ending June 2022 Adjusted Operating EBITDA excludes Other Income Adjusted EBITDA includes Other Income
Slide 18: Q1 FY2024 Performance
Q1 FY2024 Performance Actual Actual QoQ Growth Actual QE Jun-23 QE Mar-23 % QE Jun-22 Revenue from Operations 1,133.5 1,069.8 6.0% 1,148.7 Other Income 114.1 98.3 16.1% 172.6 Total Revenue 1,247.6 1,168.1 6.8% 1,321.3 Adjusted EBITDA 191.0 134.6 41.9% 198.2 Adjusted EBITDA % 15.3% 11.5% 15.0% Revers
Slide 19: Summary Financial Profile
Summary Financial Profile HGSL Net Cash & Treasury Surplus INR Cr Particulars As at 30 June 2023 4,962 in INR Cr in USD Mn (Except per (Except per As at 31 March 2023 6,370 share data) share data) Movement -1,408 Rs. 1,252 Cr. is utilized for Buyback , Buyback taxes and Shareholder's Fund 7,479.5 91
Slide 20: Revenue Composition of Rs. 1,247.6 Cr
Revenue Composition of Rs. 1,247.6 Cr Revenue Split by Source Other Income 9% BPM Business 57% Digital Services 34% BPM Business Digital Services Other Income Q1 FY2024
Slide 21: Operating Revenue Composition of Rs. 1,133.5 Cr
Operating Revenue Composition of Rs. 1,133.5 Cr Revenue Split - by Delivery Location Revenue Split - by Origination Jamaica, 4% Others 7% Canada, 13% Canada India 13% 28% India, 33% UK, 15% UK 18% USA Philippines, 34% USA, 25% 9% Others : Philippines, Jamaica & Australia Q1 FY2024
Slide 22: Operating Revenue Split by Vertical
Operating Revenue (Rs. 1,133.5 Cr) Split by Vertical Revenue Split by Vertical Telecom & Technology BFS 12% 15% Public Sector 10% Consumer & Retail Others 21% 12% Media 30% Q1 FY2024
Slide 23: Revenue Profile
Revenue Profile Client Concentration DSO Top Customer Top 5 Customers Top 10 Customers DSO (In Days) 38.6% 26.0% 68 62 8.5% Q4 FY23 Q1 FY24 Revenues of Rs 1133.5 Cr DSO – Overall includes BPM and Digital Media businesses Q1 FY2024
Slide 24: HGS Share: Performance vs CNXIT and NIFTY 50
HGS Share : Performance vs CNXIT and NIFTY 50
Slide 25: Thank You
Thank You [email protected]
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