Hinduja Global Solutions (HGS) Q4 23/24 earnings summary

Executive summary

• FY2024 operating revenue rose 2.5% YoY to ₹4,615.7 crore; operating EBITDA increased 45.8% to ₹355.9 crore, with margin up 230 bps to 7.7%.

• Q4 operating revenue grew 2.7% to ₹1,098.7 crore; operating EBITDA rose 82.5% to ₹66.2 crore, with a 6.0% margin.

• Priorities include AI- and analytics-led CX, HGS Agent X, GenAI deployments, cybersecurity, broadband and enterprise services, and expanded sales capacity in North America, the UK and Australia.

Financial highlights

• FY2024 total income increased 1.6% to ₹5,087.8 crore; total EBITDA grew 11.0% to ₹828.0 crore, with a 16.3% margin versus 14.9%.

• FY2024 PBT was ₹110.48 crore; PAT from continuing operations was ₹131.2 crore, down 54.5%, with FY2023 results including discontinued-operations profits and larger tax reversals.

• Q4 total income was ₹1,257.9 crore, up 7.7%; total EBITDA rose 67.4% to ₹225.4 crore. PAT reached ₹87.9 crore versus ₹25.7 crore, alongside a ₹46.5 crore tax credit.

• FY2024 other income declined as FX gains fell from ₹57 crore to ₹20 crore and property-sale gains were lower; Q4 other income rose 62% YoY.

Outlook and guidance

• Management expects growth to improve from FY24, citing an encouraging pipeline and strengthened sales teams in North America, the UK and Australia.

• Cape Town operations are planned to serve clients primarily in the UK, US and Australia; the South Africa subsidiary was incorporated in March 2024.

• Priorities include industry-specific AI, automation and cloud solutions, horizontal CX offerings, and collaboration across BPM and media businesses.

• Broadband strategy pairs subscriber growth with higher ARPU through IPTV, OTT aggregation and other services; digital services are expected to grow organically and inorganically.