PRESS RELEASE

For Immediate Release

August 12, 2015

Hinduja Global Solutions Limited

Consolidated Financial Performance: Q1 FY2016

Net Sales of Rs. 7,388 million, an increase of 10.9% y-o-y
EBITDA of Rs. 541 million with margin of 7.3%
PAT of Rs. 162 million with margin of 2.2%
As of June 30, 2015, the Company had Net Debt of Rs. 2,195 million and
Net Worth of Rs. 11,177 million
Interim dividend for FY2016 of Rs. 5 per share
Mumbai, India, August 12, 2015: Hinduja Global Solutions Limited (HGS) (Listed on NSE &
BSE, India) today announced its Unaudited First Quarter Results for FY2016.
Commenting on the results, Mr. Partha DeSarkar, Chief Executive Officer said:
Revenues for the first quarter of FY2016 grew by almost 11%. Our profitability has been
below expectations due to lower than anticipated volumes in some geographies and increased
cost of operation.
We believe these volume fluctuations are short-term and expect volumes to improve over the
rest of the year along with increase in profitability. We have introduced cost containment
measures to further strengthen our profitability.

Consolidated Financial Highlights:

(Rs. Million)
Net Sales
EBITDA
Margin (%)
Profit Before Tax (PBT)
Margin (%)
Profit After Tax (PAT)
Margin (%)
Basic EPS (Rs.)

Q1
y-o-y
FY2016
FY2015 Growth (%)
7,388
6,662
10.9%
541
765 (29.3)%
7.3%
11.5%
251
458 (45.2)%
3.4%
6.9%
162
325 (50.3)%
2.2%
4.9%
7.80
15.76 (50.5)%

PDF processed with CutePDF evaluation edition www.CutePDF.com

Q4
q-o-q
FY2015 Growth (%)
7,068
4.5%
693 (22.0)%
9.8%
367 (31.6)%
5.2%
413 (60.9)%
5.8%
19.98 (60.9)%

PRESS RELEASE
Consolidated Q1 FY2016 Financial Highlights:
Net Sales increased by 10.9% to Rs. 7,388 million. This growth was primarily driven by
increased contribution from the healthcare vertical.
EBITDA was Rs. 541 million with margins of 7.3%. EBITDA was impacted primarily due to
the seasonality. Decline in volumes across key geographies such as the US and Canada
also impacted EBITDA.
PAT was Rs. 162 million with a margin of 2.2%.
As of June 30, 2015, the Company had Net Debt of Rs. 2,195 million and Net Worth of Rs.
11,177 million
Q1 FY2016 Business Highlights:
In end-June, HGS signed definitive agreements to acquire a significant part of Mphasis
Groups BPM business in India. HGS has recently received approval for the acquisition from
the Competition Commission of India (CCI) and the transaction is expected to be closed in
the quarter ending 30th September 2015.
HGS US continued build a strong pipeline with a good mix of both new business from
existing clients as well as new client wins
HGS Canadas performance remained soft due to seasonal reduction in volumes from
telecom clients and minimum wage increase. Volumes across clients may improve for the
remaining part of the fiscal year.
We are in the middle of contract negotiations with our clients for price revision to reflect the
higher costs of operations. We have also won a new non-telecom client in the Canadian
public sector. This contract is getting executed and will go live in October 2015.
HGS UK continues to gain strong traction with clients. We have won two significant contracts
in the public sector this quarter. These two wins are expected to transform our UK business
and further underpin the execution of our UK growth strategy.
HGS Philippines commissioned two new centers in Manila and Iloilo. It also received new
lines of business from two existing healthcare clients and is expected to start service support
in Q2 FY2016.
HGS EBOS business added two new clients during the quarter and continues to generate
strong traction
India Domestic business continued to perform in line with managements expectations
HGS UK won seven awards at the Contact Center World Awards EMEA, including in the
Best Large Contact Center, Best in Customer Service and Best Outsourcing Partnership
categories
As of June 30, 2015, HGS had 172 active clients (excluding payroll processing clients)

PRESS RELEASE
As of June 30, 2015, contribution from Healthcare vertical is 41%, Telecom & Technology
25%, Consumer Electronics 13%, Banking & Financial Services 7%, Media 5%, Chemicals &
Biotech 2% and 7% from other verticals.
As of June 30, 2015, total headcount was 29,531. 57% in India, 22% in Philippines, 8% in the
US, 9% in Canada and 4% in Europe
Performance Outlook:
USA: Strong performance expected from both existing and new clients
Canada: This year is likely to be a challenging year and the results would be impacted by the
terms of renewal of our contracts with our clients. Volumes across existing clients may
improve for the remaining part of the fiscal year
Europe: Strong revenue growth expected in second half of the fiscal year
Philippines: Good momentum expected in key client accounts across verticals
India: Profitability is expected to improve going forward

Industry Recognitions:
During the quarter, HGS received numerous accolades by various outsourcing research &
analysis firms. These are a testament to the Companys leadership position in the BPM industry.
HGS has been named as a Leader in every market segment in the NelsonHall Healthcare
Customer Management Services NEAT report. This report includes Payer & Provider CMS
and back office, and evaluated a total of 10 vendors. HGS is seen as the foremost leader
with the ability to meet future requirements for Healthcare Payer Back office.
HGS included in the first ever Everest Research note on North America Domestic
Outsourcing Services: Providers Embrace Onshoring Is the World Still Flat? which was
also presented at the RevAmerica Conference in New Orleans, LA.
HGS was included in the HfS Population Health & Care Management Blueprint report and is
one of the top 3 out of eight vendors evaluated on execution ability.

PRESS RELEASE
About Hinduja Global Solutions:
HGS is a leader in optimizing the customer experience and helping our clients to become more
competitive. HGS provides a full suite of business process management (BPM) services from
consumer interaction solutions to platform based back office services and digital enablement
solutions. By applying analytics and interaction expertise to deliver innovation and thought
leadership, HGS increases revenue, improves operating efficiency and helps retain valuable
customers. HGS expertise spans the telecommunications and media, healthcare, insurance,
banking, consumer electronics and technology, retail, consumer packaged goods industries, as
well as the public sector. HGS operates on a global landscape with over 29,000 employees in
60 worldwide locations delivering localized solutions. For the year ended 31st March 2015, HGS
had revenues of US $ 458 million. HGS, part of the multi-billion dollar Hinduja Group, has over
four decades of experience working with some of the worlds most recognized brands.
www.teamhgs.com

Safe Harbour
Certain statements in this release concerning our future growth prospects are forward-looking
statements, which involve a number of risks, and uncertainties that could cause our actual
results to differ materially from those in such forward-looking statements. We do not undertake
to update any forward-looking statement that may be made from time to time by us or on our
behalf.

For more information, visit us at www.teamhgs.com or contact:

Srinivas Palakodeti
Hinduja Global Solutions Limited
Tel: +91 80 2573 2620
Email: pala@teamhgs.com

Bijay Sharma
Churchgate Partners
Tel: +91 22 6169 5988
Email: HGS@churchgatepartnersindia.com

Hinduja Global Solutions Limited

(CIN: L92199MH1995PLC084610)
Regd. Office : 171, Dr. Annie Besant Road, Worli, Mumbai - 400018. Contact no.: 022 - 2496 0707, Fax: 022-2497 4208
Website: www.teamhgs.com
E-mail: investor.relations@teamhgs.com
STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER ENDED JUNE 30, 2015
PART I

(Rs.in Lakhs)

Particulars

3 months
ended
30.06.2015

Preceding
3 months
ended
31.03.2015

Corresponding
3 months ended
30.06.2014 in the
previous year

Previous year
ended
31.03.2015

(Refer Notes Below)

Unaudited

Refer Note 5 below

Unaudited

Audited

(i)

(ii)

(iii)

(iv)

S.No.

3
4
5
6
7
8
9
10
11
12
13
14
15
16

Income from operations

(a) Net Sales / Income from operations

28,837.95

27,934.94

24,887.92

107,040.48

Total income from operations (net)

28,837.95

27,934.94

24,887.92

107,040.48

Expenses
a) Employee benefits expense
b) Depreciation and amortisation expense
c) Other expenses

18,701.71
1,729.06
5,796.24

17,290.86
1,639.80
5,347.66

15,257.16
1,647.84
4,442.26

66,460.51
6,056.07
19,633.03

Total expenses

26,227.01

24,278.32

21,347.26

92,149.61

2,610.94

3,656.62

3,540.66

14,890.87

537.30
3,148.24

1,110.86
4,767.48

523.53
4,064.19

2,782.33
17,673.20

259.29
2,888.95

256.08
4,511.40

398.12
3,666.07

1,575.24
16,097.96

2,888.95
1,034.72
1,854.23
1,854.23
2,071.96
-

4,511.40
1,208.04
3,303.36
3,303.36
2,071.96
-

3,666.07
1,141.99
2,524.08
2,524.08
2,062.46
-

16,097.96
4,839.52
11,258.44
11,258.44
2,071.96
-

8.95
8.91

15.97
15.96

12.24
12.17

54.49
54.21

Profit from Operations before Other Income, finance costs

and exceptional item
Other Income
Profit from ordinary activities before finance costs and
exceptional item
Finance costs
Profit from ordinary activities after finance costs but before
exceptional item
Exceptional Item
Profit from ordinary activities before tax
Tax Expense (incl. Deferred Tax)
Net Profit from ordinary activities after tax
Extraordinary items
Net Profit for the period
Paid-up Equity Share Capital ( Face Value Rs. 10/- )
Reserves excluding Revaluation Reserve as per Balance sheet of
previous accounting year
Earnings Per Share (EPS)
Basic E.P.S. ( not annualised ) ( Rs.)
Diluted E.P.S. ( not annualised ) ( Rs.)

See accompanying notes to the financial results

PART II
Select information for the Quarter ended June 30, 2015
S.No.

Particulars

PARTICULARS OF SHAREHOLDING

Public Shareholding:
- Number of shares
- Percentage of Shareholding ( % )

Promoters and Promoter Group Shareholding

(a) Pledged/ Encumbered
- Number of Shares
- Percentage of Shares ( as a % of the total shareholding
of promoters and promoter group )
- Percentage of Shares ( as a % of the total share capital
of the company)
(b) Non-encumbered
- Number of Shares
- Percentage of Shares ( as a % of the total shareholding
of promoters and promoter group )
- Percentage of Shares ( as a % of the total share capital
of the company)

Particulars

3 months
ended
30.06.2015

Corresponding
3 months ended
30.06.2014 in the
previous year

Previous year
ended
31.03.2015

6,690,121
32.29%

6,690,121
32.29%

6,595,164
31.98%

6,690,121
32.29%

Nil

Nil

Nil

Nil

14,029,452

14,029,452

14,029,452

14,029,452

100.00%

100.00%

100.00%

100.00%

67.71%

67.71%

68.02%

67.71%

3 months ended
30.06.2015

INVESTOR COMPLAINTS
Pending at the beginning of the quarter
Received during the quarter
Disposed of during the quarter
Remaining unresolved at the end of the quarter

Preceding
3 months
ended
31.03.2015

Hinduja Global Solutions Limited

(CIN: L92199MH1995PLC084610)
Regd. Office : 171, Dr. Annie Besant Road, Worli, Mumbai - 400018. Contact no.: 022 - 2496 0707, Fax: 022-2497 4208
Website: www.teamhgs.com
E-mail: investor.relations@teamhgs.com
STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER ENDED JUNE 30, 2015
Notes :
The Company is engaged only in Business Process Management and therefore, has only one primary reportable segment in accordance with
1
the Accounting Standard 17 " Segment Reporting".
2
3

The Board of Directors at their meeting held on August 12, 2015 have declared an interim dividend of Rs. 5 per Equity Share.
Other Income includes following:
(Rs. in Lakhs)
Particulars

Gain/(Loss) on account of fluctuations in foreign exchange

currencies
Dividend received from wholly owned subsidiaries
4

5
6
7

3 months ended
30.06.2015

339.82
-

Preceding 3 months
ended 31.03.2015

Corresponding 3
months ended
30.06.2014 in the
previous year

Previous year
ended 31.03.2015

(254.57)

354.88

170.23

998.53

1,948.72

During the quarter ended June 30, 2015, the Company has entered into definitive agreements for acquisition of significant portion of the
domestic BPO business from Mphasis Limited and its subsidiary Msource India Private Limited for an aggregate consideration of Rs. 1,700
lakhs. The effective date of this agreement is subject to both the parties complying with the conditions (including regulatory approvals)
mentioned in the agreement.
The figures of the quarter ended March 31, 2015 are the balancing figure between the audited figures in respect of the full financial year ended
March 31, 2015 and the published year-to-date figures upto the third quarter of the said financial year.
The Statutory Auditors have carried out a limited review of the standalone financial results for the quarter ended June 30, 2015 as per Clause
41 of the Listing Agreement with Stock Exchange.
The above results were reviewed by the Audit Committee at its meeting held on August 11, 2015 and then approved by the Board of Directors
of the Company at its meeting held on August 12, 2015.
For Hinduja Global Solutions Limited
sd/-

Place : Mumbai
Date : August 12, 2015

Rajendra P Chitale
Director
DIN: 00015986

Hinduja Global Solutions Limited

(CIN: L92199MH1995PLC084610)
Regd. Office : 171, Dr. Annie Besant Road, Worli, Mumbai - 400018. Contact no.: 022 - 2496 0707, Fax: 022-2497 4208
Website: www.teamhgs.com
E-mail: investor.relations@teamhgs.com
STATEMENT OF CONSOLIDATED UNAUDITED RESULTS FOR THE QUARTER ENDED JUNE 30, 2015
PART I

(Rs. in Lakhs)
3 months
ended

Preceding
3 months

Corresponding
3 months ended

Particulars

30.06.2015

ended
31.03.2015

30.06.2014 in the
previous year

(Refer Notes Below)

Unaudited

Refer Note 8 below

Unaudited

Audited

(i)

(ii)

(iii)

(iv)

S.No.

3
4
5
6
7
8
9
10

11
12
13
14
15
16
17
18

Previous year
ended
31.03.2015

Income from operations

(a) Net Sales / Income from operations

73,882.93

70,676.70

66,621.83

280,757.98

Total income from operations (net)

73,882.93

70,676.70

66,621.83

280,757.98

Expenditure
a) Employee benefits expense
b) Depreciation and amortisation expense
c) Other expenses

51,751.44
2,961.95
16,720.94

48,683.87
2,808.79
15,059.58

45,330.78
2,782.32
13,636.88

191,045.92
10,524.37
57,990.61

Total expenses

71,434.33

66,552.24

61,749.98

259,560.90

2,448.60

4,124.46

4,871.85

21,197.08

1,017.72

408.32

790.78

2,010.45

3,466.32
956.61

4,532.78
862.40

5,662.63
1,079.24

23,207.53
3,864.24

2,509.71
2,509.71

3,670.38
3,670.38

4,583.39
4,583.39

19,343.29
19,343.29

893.03
1,616.68
1,616.68
1,616.68
2,071.96
-

(459.90)
4,130.28
4,130.28
4,130.28
2,071.96
-

1,447.48
(114.08)
3,249.99
3,249.99
3,249.99
2,062.46
-

2,840.68

Profit from Operations before Other Income, finance costs and

exceptional item
Other Income
Profit from ordinary activities before finance costs and
exceptional item
Finance costs
Profit from ordinary activities after finance costs but before
exceptional item
Exceptional Item
Profit from ordinary Activities before tax
Tax Expense
Provision for Taxation ( incl. Deferred Tax)
MAT Credit Availed
Net Profit from ordinary activities after tax
Extraordinary items
Net Profit for the period
Less : Minority interest
Net Profit for the period after minority interest
Paid-up Equity Share Capital ( Face Value Rs. 10/- )
Reserves excluding Revaluation Reserve as per Balance Sheet of
previous accounting year
Earnings Per Share (EPS)
Basic EPS ( not annualised ) ( Rs.)
Diluted EPS ( not annualised ) ( Rs.)

7.80
7.77

19.98
19.97

15.76
15.67

16,502.61
16,502.61
16,502.61
2,071.96
-

79.88
79.46

See accompanying notes to the financial results

PART II
Select information for the Quarter ended June 30, 2015
S.No.

Particulars

3 months
ended
30.06.2015

Preceding
3 months
ended
31.03.2015

Corresponding
3 months ended
30.06.2014 in the
previous year

Previous year
ended
31.03.2015

A PARTICULARS OF SHAREHOLDING
1

Public Shareholding:
- Number of shares
- Percentage of Shareholding ( % )
Promoters and Promoter Group Shareholding
(a) Pledged/ Encumbered
- Number of Shares
- Percentage of Shares ( as a % of the total shareholding
of promoters and promoter group )
- Percentage of Shares ( as a % of the total share capital
of the company)
(b) Non-encumbered
- Number of Shares
- Percentage of Shares ( as a % of the total shareholding
of promoters and promoter group )
- Percentage of Shares ( as a % of the total share capital
of the company)

Particulars

6,690,121
32.29%

6,690,121
32.29%

6,595,164
31.98%

6,690,121
32.29%

Nil

Nil

Nil

Nil

14,029,452

14,029,452

14,029,452

100.00%

100.00%

100.00%

100.00%

67.71%

67.71%

68.02%

67.71%

3 months ended
30.06.2015

B INVESTOR COMPLAINTS
Pending at the beginning of the quarter
Received during the quarter
Disposed of during the quarter
Remaining unresolved at the end of the quarter

14,029,452

Hinduja Global Solutions Limited

(CIN: L92199MH1995PLC084610)
Regd. Office : 171, Dr. Annie Besant Road, Worli, Mumbai - 400018. Contact no.: 022 - 2496 0707, Fax: 022-2497 4208
Website: www.teamhgs.com
E-mail: investor.relations@teamhgs.com
STATEMENT OF CONSOLIDATED UNAUDITED RESULTS FOR THE QUARTER ENDED JUNE 30, 2015

Notes :
1 The Consolidated Financial Statements of Hinduja Global Solutions Limited and its subsidiaries ("the Group") are prepared in accordance with
Accounting Standard - 21 "Consolidated Financial Statements".
2

The Group is engaged only in Business Process Management and therefore, has only one primary reportable segment in accordance with the
Accounting Standard 17 " Segment Reporting".

The Board of Directors at their meeting held on August 12, 2015 have declared an interim dividend of Rs. 5 per Equity Share.

Other Income includes following:

(Rs. in Lakhs)
Particulars

Gain/(Loss) on account of fluctuations in foreign exchange

currencies
5

3 months ended
30.06.2015

442.21

Preceding 3 months
ended 31.03.2015

Corresponding 3
months ended
30.06.2014 in the
previous year

(663.28)

Previous year
ended 31.03.2015

282.86

(444.97)

Standalone Information
(Rs. in Lakhs)
Particulars

Net Sales / Income from operations

Profit Before Tax
Profit After Tax

3 months
ended
30.06.2015

Preceding
3 months
ended
31.03.2015

Corresponding
3 months ended
30.06.2014 in the
previous year

Previous year
ended
31.03.2015

28,837.95
2,888.95

27,934.94
4,511.40

24,887.92
3,666.07

107,040.48
16,097.96

1,854.23

3,303.36

2,524.08

11,258.44

During the quarter ended June 30, 2015, the Company has entered into definitive agreements for acquisition of significant portion of the domestic BPO
business from Mphasis Limited and its subsidiary Msource India Private Limited for an aggregate consideration of Rs. 1,700 lakhs. The effective date
of this agreement is subject to both the parties complying with the conditions (including regulatory approvals) mentioned in the agreement.

In view of the acquisition of Colibrium Partners LLC and Colibrium Direct LLC effective March 27, 2015, the figures of the quarter ended June 30, 2015
are not comparable with the figures of the corresponding period in the previous year.

The figures of the quarter ended March 31, 2015 are the balancing figure between the audited figures in respect of the full financial year ended March
31, 2015 and the published year-to-date figures upto the third quarter of the said financial year.
9 The Statutory Auditors have carried out a limited review of the consolidated financial results for the quarter ended June 30, 2015 as per Clause 41 of
the Listing Agreement with Stock Exchange.
10 Investors can view the standalone results of the Company on the Company's website www.teamhgs.com or the website of BSE (www.bseindia.com) or
NSE (www.nseindia.com).
11 The above results were reviewed by the Audit Committee at its meeting held on August 11, 2015 and then approved by the Board of Directors of the
Company at its meeting held on August 12, 2015.
8

For Hinduja Global Solutions Limited

sd/Place : Mumbai
Date : August 12, 2015

Rajendra P Chitale
Director
DIN: 00015986