Hinduja Global Solutions Q4 profit grows 4% to Rs 41.8 cr

Hinduja Global Solutions, the BPO arm of diversified Hinduja Group, today reported 4.1 per cent rise in consolidated net profit (adjusted) at Rs 41.8 crore for the January-March quarter, helped by growth across geographies and verticals.
Its net profit stood at Rs 40.2 crore in January-March, 2013.
The company's adjusted net profit for Q4 FY 2013-14 includes a tax impact of Rs 8.26 crore on dividend from a foreign subsidiary.
HGS' net sales grew 21.9 per cent to Rs 641.5 crore for the reported quarter from Rs 526.2 crore in the corresponding quarter last year.
"The strong performance has been led by broad-based volume growth across geographies and verticals, supported by optimal utilisation of our global facilities and favourable exchange rate variations," HGS CEO Partha DeSarkar said.

Ongoing efforts to rationalise India domestic operations also enabled further margin enhancement, he added.

"The US and Canada continue to be strong. The Philippines and India (exports) have also grown. (For) UK and Europe there was a slump, which is now improving and we expect better growth in the quarters ahead," he told PTI.
For 2013-14 fiscal, the company's net profit (adjusted) grew 82.4 per cent to Rs 165.2 crore, while revenue was up 26.3 per cent at Rs 2,504.9 crore compared to the previous financial year.
Besides the tax impact, the financials for FY2014 also include benefits of MAT credit availed by HGS in Q3 2013-14.

During the year, HGS opened five new delivery centres in the US, Canada, the Philippines and India to cater to the increasing demand for services from new as well as existing clients.
Asked about business in India, he said: "India's domestic operations' profitability improved primarily due to the focused initiative of ongoing assessment of client profitability and corrective actions undertaken."
DeSarkar said the company is also in the process of tapping new geographies like the Middle East, Caribbean and Latin America.
"We are looking at setting up a first office in the Middle East, our first in the region. Then, we are also looking at regions like Caribbean and Latin America," DeSarkar said.

By July this year, HGS plans to open a new facility at Alabang, the Philippines, taking the total number of centres in that country to seven.
The Board has recommended a final dividend of Rs 10 per share, bringing the total dividend for the year to Rs 20.
As of March 31, 2014, HGS had 139 active clients (excluding payroll processing clients).
Its total headcount stood at 26,036, of which 58 per cent were based in India and 17 per cent in Philippines. It added over 3,000 people during the quarter.