Hinduja Global Solutions (HGS) Q3 23/24 earnings summary

Executive summary

• Q3 operating revenue was ₹1,203.7 crore, up 7.6% YoY; operating EBITDA rose 39.9% to ₹115.1 crore, and PBT before exceptional items turned positive at ₹16.2 crore from a ₹28.4 crore loss.

• Performance benefited from BPM and Digital Media growth, stronger Canada and offshore operations, and lower manpower costs; economic uncertainty continued to delay client decisions.

Financial highlights

• Q3 total income was ₹1,295.1 crore, up 11.2% YoY; total EBITDA, including other income, was ₹206.6 crore, up 61.9% YoY.

• Q3 PAT was ₹8.2 crore versus ₹51.6 crore a year earlier; the comparison reflected prior-year exceptional income of ₹32.9 crore and tax reversals.

• 9M operating revenue was ₹3,517.0 crore, up 2.4%; operating EBITDA rose 39.3% to ₹289.5 crore, while total EBITDA fell 1.4% to ₹602.6 crore.

• 9M PBT before exceptional items was ₹69.1 crore versus ₹155.8 crore; total PAT was ₹43.2 crore versus ₹308.7 crore.

• Standalone Q3 operating revenue was ₹407.8 crore; continuing-operations loss after tax was ₹28.0 crore.

Outlook and guidance

• No numerical FY25 guidance was provided; growth was expected to track traditional rates, with efforts to improve margins.

• Priorities include scaling technology practices, applying AI and analytics to CX operations, and developing AI-led process management; GenAI and LLMs were identified as medium-term opportunities.

• Growth plans include cross-selling, verticalized solutions, digital sales, strategic M&A, and investment in people and technology across cloud, analytics, GenAI and social care.

• Sales strategy emphasizes managed services and industry-specific solutions; management cited an encouraging pipeline and new US and UK logos.