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Hinduja Global Solutions announced its Unaudited financial results for Q3FY10, registers a Y-o-Y growth of 1.74%


Mumbai, January 27, 2010: Hinduja Global Solutions, a leading provider of Outsourcing Solutions to global clients of Fortune 500 companies, today announced its Unaudited financial results for the quarter ended December 31, 2009.

Financial Highlights 

· Consolidated Revenue for Q3FY10 was Rs. 2,224.1 million against Rs. 2,186.0 million in Q3FY09, registering a Y-o-Y growth of 1.74%. On a sequential quarter basis, revenues decreased by 1.15% from Rs. 2,250.0 million in Q2FY10.

· Consolidated EBITDA for Q3FY10 was Rs. 418.6 million against Rs. 373.7 million in Q3FY09, registering a Y-o-Y growth of 12.03%. The EBITDA margin expanded 170 basis points to 18.8% in Q3FY10 from 17.1% in Q3FY09. On a sequential quarter basis, EBITDA was lower by 7.88% in Q3FY10 compared to the EBITDA of Rs. 454.4 million in Q2FY10.

· Consolidated PAT for Q3FY10 grew 40.4% to Rs. 301.9 million as against Rs. 215.0 million in Q3FY09. On a sequential quarter basis, PAT was 20.08% lower from the PAT of Rs. 377.8 million in Q2FY10.

· For 9MFY10, Consolidated Revenues expanded 15.5% to Rs. 6,690.1 million; consolidated EBITDA expanded 28.7% to Rs. 1,288.8 million and consolidated PAT was higher by 80.5% to Rs. 1,041.2 million.

CEO’s message

Commenting on the results, Mr. Partha De Sarkar, CEO, said, “We are pleased with our results, which are reflective of continued client traction, as demonstrated by the 15% growth that we have achieved in the first 9 months. This quarter, we have made some upfront investments in facilities and people in India and Philippines to support future growth.
Visibility of business is strong which will reflect in both earnings and margins over the coming year and we would like to re-affirm that the demand for services we offer remains strong and there continue to be multiple opportunities for growth.” 

Operating Highlights

Head count of 13,913 associates at the end of the quarter compared to 13,969 associates at the start of the quarter.

During the quarter, the company won an order from a client in the U.K. This order win is significant as it is the first order win from the U.K. and helps the company to de-risk its business model further by adding a new vertical, new currency and a new geography.

In another first for the domestic BPO industry - HGSL is foraying its operations into Tier III cities. It will inaugurate 2 centres, one in Guntur and another one in Nagercoil over the next two quarters.

Key Perspectives

Consolidated PAT for Q3FY10 – Rs. 301.9 million

Diluted EPS – Rs. 14.66 per share (not annualized)

Consolidated PAT TTM (Jan ‘09 – Dec ‘09) – Rs. 1, 401.9 million

Diluted EPS (NYSE:TTM) – Rs. 68.19 per share

Net Worth as on December 31, 2009 – Rs. 9,907.7 million

Book Value – Rs. 482.41 per share

Debt of Rs. 1,545.1 million as on December 31, 2009

Consolidated EV/EBITDA (TTM) – 2.75 times

Cash & Cash equivalents as on December 31, 2009 – Rs. 6,487.7 million

Cash and Cash Equivalents – Rs. 315.9 per share

Market Capitalisation – Rs. 9,649.8 million

Based on the closing price of Rs. 469.85 per share on NSE on January 22, 2010.

Note on Exceptional Items

Exceptional items represent a provision made towards mark-to-market losses on outstanding forward exchange contracts held for hedging future customer receivables. While it resulted in a loss of Rs. 106.1 million for the year ended March 31, 2009 it has resulted in a gain of Rs. 57.6 million for the nine months ended December 31, 2009. The company’s forward covers relate to underlying business transactions and are not speculative in nature.