HGS Announces Results for Q2 FY2019

Hinduja Global Solutions (HGS) announced its unaudited Second Quarter and Half Year results for FY2019.

Speaking on the results, Partha DeSarkar, CEO of HGS said: “HGS posted a robust revenue growth in Q2 FY2019, driven by demand across Healthcare and CET (Consumer, eCommerce, Telecom and Technology) verticals. Overall revenues stood at Rs. 11,586 million, an increase of 22.9% YoY. Of this, 7.4% was organic, 7.9% from forex gains and the rest 7.6% came from the acquisitions of AxisPoint Health (APH) and Element Solutions. From a margin perspective, Q2 EBITDA margins (excluding acquisitions) improved by 66 bps sequentially to 10.2% as per expectations.”

Canadian, US and UK businesses have shown strong revenue growth and improved profitability. A large part of the growth was led by some big logos that were signed toward the end of last fiscal. Healthcare vertical continued to ramp up, with the Provider segment registering 52.9% growth YoY in dollar terms. While the India CRM business continued to face challenges from the drop in telecom volumes, HGS is seeing strong growth in verticals like financial services.

As in Q1, the performance of APH business has had an adverse effect on overall HGS Profitability. Looking ahead, HGS expects APH’s performance to improve as the cost saving initiatives are completed and start bearing results. Element Solutions, HGS’ digital solutions business, is expected to post significant revenue growth, led by the cloud migration segment from Q3 onwards.

Continued focus on technology-led solutions and domain expertise is helping the company open up opportunities in new segments and markets, as evinced by the recent wins for HGS’ RPA and social care services. HGS continues to invest in strengthening their capabilities to make their clients more competitive.

The sales pipeline for H2 looks encouraging, and with Open Enrollment and Holiday Season coming up in Q3, HGS is well-positioned to deliver a better second half.