The Hindu Business Line : Hinduja Global Q4 net rises 49% on strong biz growth

Bangalore, May 13 Outsourcing services provider Hinduja Global Solutions reported a 49.5 per cent increase in net profit for the fourth quarter helped by strong business growth.

For the quarter, net profit was Rs 36.07 crore, compared with Rs 24.13 crore in the year-ago period. Sequentially, it grew 67.6 per cent from Rs 21.52 crore. Revenue increased 25.8 per cent to Rs 218.27 crore from Rs 173.45 crore in the corresponding period last year. In the previous quarter, revenue was Rs 218.6 crore.

On Wednesday, shares of the company increase 4.77 per cent to close at Rs 171.40 on the BSE.

“The imperative to drive costs down have never been this great,” said Mr Partha De Sarkar, CEO. “The ITeS business is doing very well, and it is on a stronger footing,” he added.

Earnings before interest, tax, depreciation and appreciation saw an annual growth of 49.9 per cent to Rs 42.36 crore from Rs 28.26 crore during the quarter. On a sequential basis, it grew 13.4 per cent.

Improvement in capacity utilisation of its delivery centres, the weakening of the rupee and the Philippines peso, and the profitability of the company’s North American centre helped boost the EBITDA during the quarter.

Mr De Sarkar said the deal pipeline grew very strong, and growth would come from existing as well as new clients. The telecom and the healthcare sectors would add to its growth in addition to the traditional strong sectors, he added.

Headcount addition

Hinduja Global would add another 600 seats during the quarter, and open one centre each in the northern and western part of India. Without commenting on the headcount addition, Mr De Sarkar said the company would like to go back to the previous annual headcount growth rates of high 30 per cent. In fiscal 2009, it had grown 25 per cent, he said.

The company has a total headcount of 13,787 associates at the end of the year, compared with 12,652 at the end of last year. It added five new clients on a net basis.

For fiscal 2009, revenues increased 25.2 per cent to Rs 797.57 crore and net profit was higher by 19 per cent at Rs 104.38 crore.

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