HGS Q1 net profit slumps to Rs 16.63 crore as other income declines

Hinduja Global Solutions' net profit more than halved to Rs 16.63 crore in just ended June quarter, compared to the year-ago period, hurt by reduction in other income.

The total income stood at Rs 1,247.6 crore during the first quarter ended June 2023, compared to Rs 1,321.33 crore in the same period of the previous year.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margins (including other income) improved from 11.5 per cent in Q4 FY2023 to 15.3 per cent in Q1 FY2024.

Partha DeSarkar, Executive Director and Group CEO of HGS said: "The results for the first quarter of the fiscal have been solid and reflect our transformative ability to adapt in a fast-changing macro-business environment."

The business process management business achieved operating revenue growth of 7 per cent over Q4 FY2023, along with significant improvement in margins.

While the operational performance has improved, PAT (profit after tax) for Q1 FY2024 is lower than Q1 FY2023, primarily due to a reduction in other income.

"Looking ahead, though global economic uncertainties persist, we remain cautiously optimistic for the year. We are confident that we can navigate the challenges and seize our opportunities with our technology-led, people- driven approach," DeSarkar said.

He added "We will also continue with our cost optimisation initiatives, including further real estate rationalisation.