Hinduja Global Solutions (HGS) Q2 23/24 earnings summary

Executive summary

• Q2 operating revenue rose 1.1% YoY to ₹1,179.9 crore; operating EBITDA increased 30.0% to ₹97.5 crore, lifting margin to 8.3%.

• Client spending cuts and delayed decisions tempered growth, while cost control and real-estate rationalization supported margins.

Financial highlights

• Q2 total income was ₹1,287.4 crore; continuing-operations PAT was ₹18.4 crore, down 89.5% YoY, while consolidated PAT grew 10.8% QoQ.

• H1 operating revenue was ₹2,313.3 crore, down 0.1%; operating EBITDA rose 38.9% to ₹174.3 crore, with margin increasing to 7.5% from 5.4%.

• H1 total PAT was ₹35.1 crore versus ₹257.1 crore a year earlier; lower other income and prior-year items affected the comparison.

• Q2 operating cash flow was ₹24.6 crore, versus cash used of ₹28.3 crore in the amended prior-year period.

Outlook and guidance

• Muted revenue growth is expected amid client spending cuts, delayed decisions, difficulty winning large new logos and the conclusion of short-term projects.

• Priorities include cost and margin management, offshore and nearshore growth, and technology and sales investment; EMEA expansion is planned.

• Technology Solutions cited reduced spending by a major social-media client and delayed project starts as headwinds, while its pipeline and cross-selling remained encouraging.