Announcement under Regulation 30 (LODR)-Investor Presentation

Q1 FY2023 Earnings Call Presentation This has reference to our communication dated August 9, 2022 on Q1 FY2023 Earnings Call. We wish to attach herewith the presentation being briefed at the today's Conference Call. The same is being available on the Company's website (www.teamhgs.com/investors).

about 1 month ago

INVESTOR PRESENTATION

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Sentiments detected

Positive 7
  • - Strong revenue growth of 14.1% YoY •

  • Robust demand for our customer experience (CX) services and digital solutions across all our geographies • Continue to reward shareholders - Interim Dividend of Rs 5/ share - Dividend outgo of Rs 21 Cr

  • Overall good performance in Consumer Engagement Solutions business - Onshore: the US, Canada and UK were above expectations - Offshore: India, Philippines and Jamaica showed strong growth from existing accounts - Expanded seat utilization and set up a new center in Mysuru in July 2022 to meet increased demand Digital business continues its strong momentum - Digital solutions business grew revenues by 57%YoY - Cloud & Security and Automation practices expanded significantly ▪ Contribution to overall HGS revenue up from 9.8% in Q1 FY2022 to 14.3% in Q1 FY2023 ▪ In June quarter, we signed 28 digital-led engagements across existing and new clients ▪ HGS focused on expanding solutions portfolio across RPA, cloud, analytics, AI and digital customer engagement ▪ Continue to add technologists and digital experts, primarily in India and the US

  • Diversify Offshore, Australia (acquired in end-February 2022) is performing well – - Strong revenue growth of over 23% YoY - Delivered EBITDA margins of 22.4% in June quarter - Signed 8 new logos since acquisition in end-February - Healthy sales pipeline

  • - With a tightening macro-economic environment, HGS is cautiously optimistic - Looking to drive aggressive growth for the rest of the year – higher revenue and improved margins ‐ Expansion in the UKHSA account and offshore accounts ‐ Real estate consolidation ‐ G&A optimization ‐ Paring down of ramp costs in the US and Canada - Focus on –

  • ‐ Winning new clients through an integrated sales strategy ‐ Strengthening digital-led capabilities, both organically and through acquisitions ‐ Set up new centers in a hub & spoke model to leverage Work@Home ‐ Recruit the best talent to meet evolving client needs

  • YoY Growth 9.0 % from Organic growth 5.1 % from acquisition Sequential Growth 2.5% from Organic growth 2.9% from acquisition

Negative 1
  • The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in the BPM industry including those factors which may affect our cost advantage, wage increases, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-timeframe contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Hinduja Global Solutions (HGS) has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry.

Mentioned Phrases & Organizations

Important keywords detected (20+)

hgs (15)
growth (11)
digital (9)
solutions (6)
shareholders (6)
revenue (6)
india (5)
statements (5)
looking (5)
time (5)
canada (5)
new (5)
business (5)
earnings (4)
call (4)
forward (4)
ability (4)
strong (4)
across (4)
dividend (4)

Organizations identified (10+)

INR Cr (4)
NXTDIGITAL (4)
Hinduja Global Solutions (1)
PBT (1)
Diversify Offshore (1)
Annualisedsavings (1)
HGS (1)
UKHSA (1)
NXTDIGITAL Limited (1)
TTM (1)

Tables extracted (3)

ParticularsHGSL
in INR Cr (Except per share data)in USD Mn (Except per share data)
Net Book value per Price per Dividend per EPS P/E Ratio Gross Total Net101.0 2.4 16.9 0.1 1.2 15.1 0.0 42.7 42.7
75.44forthe TTM
end-June
79.63Spot Rate- for share price calculation
As on 31 st March 2022 As on 30 th June 2022 (in INR Cr) (In INR Cr)
Debt32
ICDs to Related Parties1,1251,215
Cash3,5213,372
Debt Investments2,4672,568

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