Hinduja Global Solutions (HGS) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 operating revenue was ₹1,091.92 crore, down 3.7% YoY; EBITDA margin was 1.5% amid one-time costs, while PAT of ₹161.52 crore included a ₹218.54 crore healthcare-sale gain.

• Macro volatility and delayed client decisions weighed on performance; new-logo wins and technology-led CX and HRO demand supported growth plans.

Financial highlights

• Revenue from operations was ₹1,091.92 crore, down 3.7% YoY; USD revenue was $130.9 million, down 5.1% YoY and 1.0% QoQ.

• Operating EBITDA was ₹16.7 crore, with a 1.5% margin, versus 6.0% in Q4 FY24 and 6.8% in Q1 FY24; one-time costs affected Q1.

• Continuing operations recorded a ₹57.02 crore net loss, while discontinued operations contributed ₹218.54 crore; total PAT was ₹161.52 crore.

• Other income was ₹126.7 crore, up 11.0% YoY and down 20.4% QoQ.

• Standalone revenue was ₹411.11 crore and standalone net loss was ₹85.18 crore, versus a ₹5.16 crore loss in Q1 FY24.

Outlook and guidance

• Management expects profitability to improve from Q2 FY25 as one-time cost impacts ease.

• Priorities include verticalized solutions, pipeline growth and an offshore-focused, non-linear operating model; pipeline demand includes technology-enabled CX and cross-sell deals.

• Plans target a larger digital and digital-operations mix by 2027, spanning cloud, data and analytics, cybersecurity, automation and AI-supported customer service.