BackHinduja Global Solutions Q4 net profit at `40.2 crore
Net sales rose 14.3% to `5,26.2 crore driven by improved business in its healthcare and telecom segments
Premium(Over the preceding December quarter, profit increased 101.2% on a 1% rise in sales. )
Mumbai: Business process outsourcing company Hinduja Global Solutions Ltd’s (HGS) consolidated fourth quarter net profit grew 29.3% year-on-year to ₹ 40.2 crore, helped by improved margins and lower interest costs.
Net sales rose 14.3% to ₹ 5,26.2 crore driven by improved business in its healthcare and telecom segments, the company said in a statement on Wednesday.
Over the preceding December quarter, profit increased 101.2% on a 1% rise in sales, it said.
Interest expense in the March quarter declined following the repayment of a $10 million debt taken against deposits of subsidiary HGS International, the company said. As of 31 March, HGS’ net debt was ₹ 72.1 core.
Operating margin increased to 7.6% in the fourth quarter from 6.7% in the same period last year and 3.8% in the December quarter.
“This has been achieved through a combination of improving the capacity utilization of all of our centres and efforts put in to rationalize some of our unviable businesses," chief executive officer Partha De Sarkar said. “In the near term our profitability and margins are expected to benefit from enhanced utilization levels at our facilities primarily in the Philippines and Canada."
Net profit in fiscal year 2013 was ₹ 90.6 crore, down 14.6% from the previous year when the company benefited from a tax reversal of ₹ 9 crore. Net sales grew 27.6% to ₹ 1,983.4 crore.
The HGS stock was trading at ₹ 281.05 a share, up 9.75%, in afternoon trading on BSE, while the benchmark Sensex was down 0.31% at 20,098.42 points.
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