Hinduja Global Solutions Limited · NSE:HGS
Hinduja Global Solutions — Q1 FY2025 Earnings Presentation
26 slides from Hinduja Global Solutions's earnings presentation, Aug 19, 2024
Slide 1: HGS Earnings Call Presentation Q1 FY2025
HGS Earnings Call Presentation Q1 FY2025 August 19, 2024 1
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 3
Slide 4: Company at a Glance
Company at a Glance A global leader in optimizing the customer experience lifecycle, digital transformation, business process management and digital media ecosystem ▪ Part of the multi-billion-dollar conglomerate Hinduja Group, ▪ HGS serves 1K+ brands across BPM, technology and HRO ▪ 5K+ digital tra
Slide 5: Snapshot of Q1 FY2025 financial performance
Snapshot of Q1 FY2025 financial performance Amount in INR Cr Operating Revenue Other Income 126.7 1,133.5 114.1 1,091.9 Q1 FY 24 Q1 FY 25 Q1 FY 24 Q1 FY 25 Total PAT 161.5 16.6 Q1 FY 24 Q1 FY 25 Total PAT includes profit form continued and discontinued operations 5
Slide 6: Key Highlights
Key Highlights ▪ Challenges in macro-economy persist with continued volatility and delayed decision-making by some key clients ▪ However, we are seeing increased demand for our services… signed 24 tech-led CX and 9 HRO new logos ▪ Technology services – strong traction in Data & Analytics, social car
Slide 7: The Market is Evolving
The Market is Evolving ▪ Technology changes are transforming our industry ▪ Emergence of Generative AI (Gen AI) and Large Language Models (LLMs) ‒ Unveiled in November 2022 ‒ Potential of completely changing the world we live in ▪ If used properly, the new technology represents a tectonic shift of h
Slide 8: Our People are our Superpower
Our People are our Superpower ▪ Focus on building a talent pool of digital natives who can propel HGS to become a technology powerhouse in the CX domain ▪ Attracting and retaining some of the best minds emerging out the college campuses world-wide ▪ Massive reskilling effort underway to equip our pe
Slide 9: Way forward
Zzhgs Way forward
Slide 10: Vision: Preferred DX Transformation Partner
Vision: Be the preferred DX Transformation Partner for the world’s most admired brands Digital Marketing CUSTOMER EXPERIENCE Customer Experience CRM & Customer Interactions between the client Insights Proactive and their customers during the period of their relationship GenAI & LLM powered chatbots
Slide 11: Future State: 2027
Future State: 2027 Digital Traditional Digital Operations CX DIGITAL DIGITAL OPERATIONS TRADITIONAL CX • App Development / Maintenance • AI Driven Process Management • Contact Center with heavy • Cloud Deployment & Migrations • AI Supported Unattended workforce deployment • Systems Implementations (
Slide 12: Optimize our Business
Optimize our Business 01 02 Change our Increase our pipeline Revenue Mix – led by aggressively verticalized solutions 03 04 Transform our Be a Operating Model – focus Thought Leader – AI on offshore, non-linear enabled conversations
Slide 13: Digital Media Business: An Update
Digital Media Business: An Update Vynsley Fernandes 13
Slide 14: Business Environment
Business Environment TRAI announces regulatory changes for broadcasting and cable
Slide 15: Commercial Broadband
Commercial Broadband The OneBusiness - Commercial Broadband project aims to validate a new market & business model of providing services to MSMEs & SOHOs - adding an additional revenue stream. Commercial customers give longer duration contracts with higher yield. ▪ Main product in the portfolio is a
Slide 16: Media Group KPIs Q1 FY2025
Media Group KPIs Q1 FY2025 Whilst the broadband & DTV subscriber base continues to grow YoY, there was a marginal dip in Q1 over the preceding quarter on account of two reasons - annual seasonal trend for Q1 where renewals are slow on account of the vacation period and secondly, the planned churn of
Slide 17: Financial Update
Financial Update Srinivas Palakodeti 17
Slide 18: Overall Performance: Q1 FY25 vs Q4 FY24 vs Q1 FY24
Overall Performance : Q1 FY 25 vs Q4 FY 24 vs Q1 FY 24 Amount in INR Cr Actual Actual QoQ Growth Actual YoY Growth Particulars Q1 FY 25 Q4 FY 24 % Q1 FY 24 % Revenue from operations ($ Mn) $ 130.9 $ 132.2 -1.0% $ 138.0 -5.1% Revenue from operations 1,091.9 1,098.7 -0.6% 1,133.5 -3.7% EBITDA 16.7 66.
Slide 19: Summary Balance Sheet
Summary Balance Sheet Amount in INR Cr As at As at As at As at Particulars Jun 24 Mar 24 Particulars Jun 24 Mar 24 EQUITY AND LIABILITIES ASSETS Equity Non-current assets Share capital 46.5 46.5 Fixed assets and leases 1,497.4 1,250.5 Other equity* 7,772.5 7,595.9 Intangibles 1,540.1 1,519.3 Total E
Slide 20: Summary Cash Flow
Summary Cash Flow Amount in INR Cr Particulars Q1 25 FY 24 Profit Before Tax 174.3 110.5 Non-operating adjustments 76.7 293.2 Net change in current assets and liabilities (35.4) (147.3) Income taxes paid (net) 133.3 (64.0) Cash from operating activities 348.9 192.4 Net Capex Investments (30.5) 70.5
Slide 21: Summary Financial Profile
Summary Financial Profile HGSL Particulars in INR Cr in USD Mn (Except per (Except per share data) share data) Particulars Q1 FY 25 Q4 FY 24 Change Shareholder's Fund 7,820.2 937.4 Gross Treasury & Cash Surplus 6,284.7 6,318.5 -33.8 Total Borrowings 1,107.5 1,305.9 -198.4 Book value per share 1,681.
Slide 22: Operating Revenue Composition of Rs. 1,092 Cr
Q1 FY 2025: Operating Revenue Composition of Rs. 1,092 Cr Operating Revenue Split by Source Digital & Media Services 43% CX Services 57% CX Services Digital & Media Services
Slide 23: Operating Revenue Composition: Delivery Location and Origination
Q1 FY 2025: Operating Revenue Composition of Rs. 1,092 Cr Revenue Split - by Delivery Location Revenue Split - by Origination Philippines, Others, 3% Australia Others 6% 1% 11% Canada 12% India 36% UK, 13% India, 42% UK 15% Canada, 12% USA 30% USA, 20% Others: Jamaica, Colombia Others : Philippines,
Slide 24: Operating Revenue Split by Vertical
Q1 FY 2025: Operating Revenue Rs. 1,092 Cr - Split by Vertical Q1 FY25-Revenue Split by Vertical BFSI, 15% Consumer & Retail, 12% Tech, Media & Telecom, 55% Others, 4% Health & Life Sciences, 3% Public Sector, 11%
Slide 25: Q1 FY 2025: Revenue Profile
Q1 FY 2025: Revenue Profile Client Concentration DSO Top Customer Top 5 Customers Top 10 Customers DSO (In Days) 62 33.9% 60 25.1% 10.2% Q4 FY24 Q1 FY25 Revenues of Rs 1,092 Cr
Slide 26: Thank You
Thank You [email protected]
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