Mumbai, India, November 14, 2022: Hinduja Global Solutions (HGS or the Company) (listed in BSE & NSE) today announced its unaudited second quarter results for FY2023.
Speaking on the results, Partha DeSarkar, Executive Director and Group CEO of HGS said: “We are pleased to announce that Hon’ble NCLT vide Order dated November 11, 2022, has sanctioned the Scheme of Arrangement between NXTDIGITAL Limited (NDL) and the Company and their respective shareholders for transfer and vesting of NDL’s digital, media and communication undertaking with the Company. It opens up a new, fast-growing market opportunity while also significantly expanding our presence in India.
With the media & communications businesses of NXTDIGITAL being transferred to Hinduja Global Solutions Limited (HGSL), Vynsley Fernandes, Managing Director and Chief Executive Officer at NXTDIGITAL is moving over today into the Board of HGSL as Whole-Time Director. He will continue to oversee the entire portfolio of media and communications businesses that have been transferred to HGSL – extending from digital television via satellite (HITS) and cable to broadband, content syndication and teleshopping.
HGS’ BPM business continues to sustain its strong momentum. We reported good results on all financial parameters, with double-digit growth across revenues and EBIDTA in Q2 FY2023. While our Digital business continues to perform extremely well, we are beginning to see some headwinds in the UK business, which has strong dependence on the Public Sector.
Our HGS 2.0 strategy of focusing on digital-led solutions to drive business outcomes for clients is paying off with more than half of our client engagements (new and existing) signed in Q2 coming from the digital business. Our digital business grew by 63% YoY in the quarter.
Demand for offshore delivery continues to increase and we added a new center in Mysuru, India to support this. HGS is also expanding its onshore and nearshore presence with a new center in Belfast and a customer experience (CX) hub in Barranquilla in Colombia. We expect these new centers to help us cater to the evolving, multi-lingual CX needs of clients. While we add centers in offshore locations, we continue to rationalize and consolidate the real estate footprint in the US, Canada and the UK, where the majority of the employees are working from remote locations.
Looking ahead, we expect our growth momentum to continue into H2 FY2023. Our current visibility into client demand and pipeline is encouraging, and we continue to invest in meeting their evolving transformational requirements.”
Now that the NCLT order and the Scheme of Arrangement with NXTDIGITAL has come into effect, the process of buyback will commence once the allotment and trading approval of the shares is done, which is expected to be completed by December 7, 2022. The details of the buyback shall be made available soonest as we progress with regulatory approvals.
| Financial Highlights for Q2 FY2023 |
| HGS revenues for Q2 FY2023 (excluding NXTDIGITAL’s Media and Digital business) | HGS revenues (including NXTDIGITAL’s Media and Digital business) |
| Total revenues stood at Rs. 11,028.8 million, a growth of 34.4% YoY EBITDA (including Other Income) was Rs. 2,246.9 million, up 232.9% YoYCapital expenditure was Rs. 93.2 million | Total revenues stood at Rs. 13,689.9 million, a growth of 25.0% YoY EBIDTA (including Other Income) was Rs. 2,764.8 million, up 135.6% YoYNet Profit increased to Rs. 2389.7 million, a growth of 118.1% YoY |
*Note: HGS divested its Healthcare Services vertical in January 2022. Hence HGS’ retained business now comprises its digital-enabled customer experience (CX) solutions and HRO/ payroll businesses. All numbers given are for the retained business, unless specified.
| Financial Highlights for H1 FY2023 |
| HGS revenues for H1 FY2023 (excluding NXTDIGITAL’s Media and Digital business) | HGS revenues (including NXTDIGITAL’s Media and Digital business) |
| Total revenues stood at Rs. 21,474.1 million, a growth of 30.3% YoY EBITDA (including Other Income) was Rs. 3,956.3 million, up 179.0% YoY Capital expenditure was Rs. 356.5 million | Total revenues stood at Rs. 26,903.2 million, a growth of 23.0% YoY EBIDTA (including Other Income) was Rs. 4,996.3 million, up 104.2% YoYNet Profit increased to Rs. 2,731.8 million, a growth of 35.6% YoY |
Note: HGS divested its Healthcare Services vertical in January 2022. Hence HGS’ retained business now comprises its digital-enabled customer experience (CX) solutions and HRO/ payroll businesses. All numbers given are for the retained business, unless specified.
| Business Highlights for Q2 FY2023 |
- Client wins:
- Added four new logos for digital-enabled CX solutions and four for HRO/ Payroll Processing
- Signed 41 engagements with new and existing clients for core CX and digital solutions (RPA, digital engagement, analytics, cloud and social care, etc.)
- Clientele: Overall, HGS had 219 active CX clients and 747 HRO/Payroll processing clients.
- NXTDIGITAL (Digital Media business) had customer base of more than 5 million.
- Employee Headcount: 23,146 as of September 30, 2022, an addition of 1,142 people in the BPM business in Q2 FY2023, and 1,200 added through NXTDIGITAL’s Digital Media business acquisition.
- Delivery Centers:
- HGS continues to consolidate its real estate as we focus more on a hybrid working model and closed four centers in Canada in Q2 FY2023.
- HGS added two new centers in Mysuru, India and Belfast in the UK to cater to new demand.
- As of September 30, 2022, HGS had 33 global delivery centers across seven countries.
- HGS to set up a new CX hub in Barranquilla, Colombia with multi-lingual capabilities in November 2022.
- Awards & Recognition in Q2 FY2023:
- “Major Contender” In Everest Group “CXM in the Americas – Service Provider Landscape with Services PEAK Matrix® Assessment 2022”.
- “Major Contender” In Everest Group “CXM in EMEA – Service Provider Landscape with Services PEAK Matrix® Assessment 2022”.
- “2022 Communications Solutions Products of the Year Award – HGS Agent X” by TMC.
- “Best Skill Development Programme Initiative of the year -2022 (Corporate)’ by Indian CSR Awards.
- “Best 5 CSR Professionals of the Year 2022 – Shilpa Sinha Harsh” by Indian CSR Awards.
- “Key Differentiator International WFM Award 2022” by Global Workforce Management Forum (GWMF).
- Key Highlights from Digital Media business in Q2 FY2023:
- Launched its 100th NXTHUB, providing customers access to broadband, digital television and OTT content seamlessly
- Launched NXTSkyFi – one of India’s first broadband-over-satellite services; offering customers bundled applications (like education & on-demand content) in markets where connectivity remains a challenge
- Launched OneDigital – India’s first end-to-end integrated solution, providing customers broadband with speeds up to 1,000 Mbps, 650+ digital television channels, access to over 300,000 hours of OTT content, voice-over-IP, building & public WiFi & bespoke CCTV solutions.
- Introduced NXT Sangram – national programme to train franchisees in digital applications
- Scheduled to rollout NXTPLAY – its content aggregator app shortly, providing access to international and regional content.
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