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Hinduja Global slides on dismal Q3 show

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Capital Market
Last Updated : Feb 09 2018 | 12:31 PM IST

Hinduja Global Solutions dropped 5.44% to Rs 939 at 11:34 IST on BSE after consolidated net profit fell 8.2% to Rs 47.20 crore on 3.5% rise in operating revenues to Rs 956.30 crore in Q3 December 2017 over Q2 September 2017.

The results were announced after market hours yesterday, 8 February 2018.

Meanwhile, the S&P BSE Sensex was down 468.35 points, or 1.36%, to 33,944.81. The S&P BSE Small-Cap index was down 75.01 points, or 0.41%, to 18,056.18, outperforming the Sensex.

On the BSE, 14,062 shares were traded in counter so far compared with an average volume of 21,731 shares in the past one quarter. The stock had hit a high of Rs 950 and a low of Rs 915.20 so far during the day. The stock had hit a record high of Rs 1,042 on 8 February 2018. The stock had hit a 52-week low of Rs 490.65 on 31 August 2017.

The stock had outperformed the market over the past 30 days till 8 February 2018, rising 10.02% compared with 0.18% rise in the Sensex. The scrip had also outperformed the market in past one quarter, surging 72.27% as against Sensex's 3.6% rise. The scrip had also outperformed the market in past one year, jumping 65.48% as against Sensex's 21.64% rise.

The small-cap company has an equity capital of Rs 20.80 crore. Face value per share is Rs 10.

Partha DeSarkar, CEO of the company said that earnings before interest, tax, depreciation and amortization (EBITDA) margins for the quarter at 10.3% were muted due to the strong rupee growth and onshore Healthcare growth. Profitability was also depressed due to the cost of empty seats in the UK and performance of the healthcare platform business. During the latter half of FY2018, the company had several large wins, which augurs well for growth in FY2019.

The board of directors declared third interim dividend of Rs 2.50 per share for the year ending 31 March 2018 (FY 2018).

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With a view to achieve synergies in operations, reduction in costs and combination of resources etc, the board has approved the merger of its wholly-owned subsidiary, HGS International Services (HGSISPL), with itself. The transaction is subject to requisite approvals, will have 1 April 2017 as the appointed date.

The company said that the tenure of Partha DeSarkar, the manager of the company designated as Chief Executive Officer (CEO) of the company will be ending on 31 March 2018. The board of directors approved reappointment of Partha DeSarkar as the manager of the company designated as CEO of the company with effect from 1 April 2018 for a period of three years.

Hinduja Global Solutions (HGS) is a global leader in business process management (BPM) and optimizes the customer experience lifecycle, to help make its clients more competitive every day. HGS combines technology-powered services in automation, analytics and digital with domain expertise focusing on back office processing, contact centers and HRO solutions to deliver transformational impact to clients.

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First Published: Feb 09 2018 | 12:10 PM IST

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