Hinduja Global Solutions jumped 5.96% to Rs 612 after consolidated net profit rose 26% to Rs 54.1 crore on 1.5% rise in net sales to Rs 656.9 crore in Q3 December 2013 over Q2 September 2013.
The Q3 result was announced during market hours today, 11 February 2014.
Meanwhile as per provisional closing, the BSE Sensex was up 26.41 points or 0.13% to 20360.68.
On BSE, so far 35,520 shares were traded in the counter as against average daily volume of 6,051 shares in the past one quarter.
The stock hit a 52-week high of Rs 632 in intraday trade today, 11 February 2014. The stock hit a low of Rs 576.05. The stock had hit a 52-week low of Rs 218 on 20 March 2013.
The small-cap stock outperformed the market over the past one month till 10 February 2014, falling 1.83% compared with the Sensex's 2.04% fall. The scrip had also outperformed the market in past one quarter, gaining 38.95% as against Sensex's 1.61% fall.
The company has an equity capital of Rs 20.61 crore. Face value per share is Rs 10.
Hinduja Global Solutions' earnings before interest, taxation, depreciation and amortization (EBITDA) increased by 12.9% to Rs 91.9 crore in Q3 December 2013 over Q2 September 2013. EBITDA margin rose to 14% in Q3 December 2013 from 12.6% in Q2 September 2013. Improvement in EBITDA margins was due to better capacity utilization levels across all geographies. Continued efforts on performance management and cost control measures have started yielding results, the company said.
Hinduja Global Solutions attributed rise in sales to increase in volumes from existing customers and new client additions. Growth in profit was primarily due to lower interest expense as a result of debt repayment and better working capital management. Profit after tax includes benefits of lower tax expense due to recognition of minimum alternate tax (MAT) credit of Rs 11.26 crore, of which Rs 1.69 crore pertained to Q3, Rs 4.12 crore pertained to Q1 and Q2 and Rs 5.43 crore pertained to earlier years.
As of 31 December 2013, the company had net debt of Rs 62.1 crore and net worth of Rs 1465 crore, Hinduja Global Solutions said.
Commenting on the results and performance, Mr. Partha DeSarkar, Chief Executive Officer of Hinduja Global Solutions said: We are very pleased to announce our fourth straight quarter of strong financial performance as we continue to set new benchmarks. Despite strengthening of the rupee during the quarter our consolidated revenues, EBITDA and PAT achieved new highs. This robust performance has been driven by strong growth from the US and Canadian markets. The momentum of offshoring has also picked up. Our margins have improved significantly due to better utilization of delivery centers across all geographies coupled with various performance optimization initiatives undertaken during the year. Keeping in view the strong demand, we started two new centers in Alabang, Philippines, one in Princeton, New Jersey and expanded the Bangalore center to service the healthcare sector. We are also focused on strengthening business from the middle-east region during FY2015. The company continues to see strong demand for its services and expects to continue this growth momentum with a focus on improving shareholders returns. Our strong sales pipeline and emphasis on new lines of services are expected to drive future growth. Encouraged by this strong performance, the Board has declared second interim dividend of Rs 5 per share for FY2014.
In terms of outlook, Hinduja Global Solutions said that for USA, continued focus will be on large deals with multi geography delivery model and across verticals. In India, corrective measures taken during the year are expected to result in further improvement in margins. For Canada, focus on expanding selected services will drive future growth. In Philippines, profitability may be muted in the near term due to ongoing ramp-ups. In Europe, increased focus would be on marketing and branding activities.
Hinduja Global Solutions is a part of the multi-billion dollar conglomerate Hinduja Group, one of the leading providers of outsourcing solutions. The company provides outsourcing solutions that include back office processing, contact center services and customized IT solutions to its global clients comprising several Fortune 500 Companies.
Powered by Capital Market - Live News
